As filed with the Securities and Exchange |
Registration No. 333-147534 |
Commission on April 7, 2017 |
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. _____ |
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Post-Effective Amendment No. 13 |
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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)
8055 East Tufts Avenue, Suite 710
Denver, Colorado 80237
(Address of Depositor’s Principal Executive Offices) (Zip Code)
(800) 525-9852
(Depositor’s Telephone Number, including Area Code)
J. Neil McMurdie, Senior Counsel
Voya®
One Orange Way, Windsor, Connecticut 06095-4774
(Name and Address of Agent for Service)
It is proposed that this filing will become effective (check appropriate box): |
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immediately upon filing pursuant to paragraph (b) of Rule 485 |
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on May 1, 2017, pursuant to paragraph (b) of Rule 485 |
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60 days after filing pursuant to paragraph (a)(1) |
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on ____________, pursuant to paragraph (a)(1) of Rule 485. |
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If appropriate, check the following box: |
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This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
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PART A
INFORMATION REQUIRED IN A PROSPECTUS
VOYA VUL-CV
A FLEXIBLE PREMIUM ADJUSTABLE VARIABLE UNIVERSAL LIFE
INSURANCE POLICY
issued by
Security Life of Denver Insurance Company
and its
Security Life Separate Account L1
Supplement dated May 1, 2017
This supplement updates and amends certain information contained in your prospectus dated May 1, 2017. Please read it carefully and keep it with your prospectus for future reference.
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NOTICE OF AND IMPORTANT INFORMATION ABOUT AN UPCOMING FUND REORGANIZATION
The following information only affects you if you currently invest in or plan to invest in the Subaccount that corresponds to the VY® FMR® Diversified Mid Cap Portfolio.
On November 17, 2016, the Board of Trustees of Voya Investors Trust approved a proposal to reorganize the VY® FMR® Diversified Mid Cap Portfolio. Subject to shareholder approval, effective after the close of business on or about July 14, 2017, (the “Reorganization Date”), Class I shares of the VY® FMR® Diversified Mid Cap Portfolio (the “Merging Fund”) will reorganize with and into Class I shares of the Voya MidCap Opportunities Portfolio (the “Surviving Fund”).
Voluntary Transfers Before the Reorganization Date. Prior to the Reorganization Date and for 30 days thereafter, you may transfer amounts allocated to the Subaccount that invests in the Merging Fund to any other available Subaccount or to the Guaranteed Interest Division. There will be no charge for any such transfer, and any such transfer will not count as a transfer when imposing any applicable restriction or limit on transfers. See the Transfers section beginning on page 61 of your policy prospectus for information about making Subaccount transfers, including applicable restrictions and limits on transfers.
On the Reorganization Date. On the Reorganization Date, your investment in the Subaccount that invests in the Merging Fund will automatically become an investment in the Subaccount that invests in the Surviving Fund with an equal total net asset value. You will not incur any tax liability because of this automatic reallocation, and your Account Value immediately before the reallocation will equal your Account Value immediately after the reallocation.
Automatic Fund Reallocation After the Reorganization Date. After the Reorganization Date, the Merging Fund will no longer be available through your policy. Unless you provide us with alternative allocation instructions, after the Reorganization Date all allocations directed to the Subaccount that invests in the Merging Fund will be automatically allocated to the Subaccount that invests in the Surviving Fund. See the Transfers section beginning on page 61 of your policy prospectus for information about making fund allocation changes.
Allocation Instructions. You may give us alternative allocation instructions at any time by contacting Customer Service at P.O. Box 5065, Minot, ND 58702-5065, 1-877-253-5050 or www.voyalifecustomerservice.com.
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Page 1 of 2 |
May 2017 |
NOTICE OF AN UPCOMING FUND ADDITION
In connection with the upcoming fund merger involving the VY® FMR® Diversified Mid Cap Portfolio referenced above, effective on the Reorganization Date Class I shares of the Voya MidCap Opportunities Portfolio will be added to your policy as a replacement investment option.
Please note the following information about the Voya MidCap Opportunities Portfolio:
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
Voya MidCap Opportunities Portfolio (Class I)
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
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Seeks long-term capital appreciation. |
MORE INFORMATION IS AVAILABLE
More information about the funds available through your policy, including information about the risks associated with investing in them, can be found in the current prospectus and Statement of Additional Information for each fund. You may obtain these documents by contacting:
Customer Service
P.O. Box 5065
Minot, ND 58702-5065
1-877-253-5050
If you received a summary prospectus for any of the funds available through your policy, you may obtain a full prospectus and other fund information free of charge by either accessing the internet address, calling the telephone number or sending an email request to the email address shown on the front of the fund’s summary prospectus.
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Page 2 of 2 |
May 2017 |
VOYA VUL-CV
A FLEXIBLE PREMIUM ADJUSTABLE VARIABLE UNIVERSAL LIFE INSURANCE POLICY
issued by
Security Life of Denver Insurance Company and its Security Life Separate Account L1
This prospectus describes what you should know before purchasing the Voya VUL-CV variable universal life insurance policy. Please read it carefully and keep it for future reference. If you received a summary prospectus for any of the mutual funds available through your policy, you may obtain a full prospectus and other fund information free of charge by either accessing the internet address, calling the telephone number or sending an email request to the email address shown on the front of the fund’s summary prospectus.
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 Federal Deposit Insurance Corporation (“FDIC”), the Federal Reserve Board or any other government agency. The policy is subject to investment risk.
The date of this prospectus is May 1, 2017.
TABLE OF CONTENTS
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POLICY SUMMARY....................................................... 3
The Policy’s Features and Benefits................................ 3
Factors You Should Consider Before
Purchasing a Policy........................................................ 6
Fees and Charges............................................................... 8
THE COMPANY, THE SEPARATE
ACCOUNT AND THE GUARANTEED
INTEREST DIVISION.............................................. 15
Security Life of Denver Insurance Company............ 15
The Investment Options................................................. 16
DETAILED INFORMATION ABOUT
THE POLICY............................................................. 21
Underwriting..................................................................... 21
Purchasing a Policy......................................................... 23
Fees and Charges............................................................. 28
Death Benefits................................................................. 37
Additional Insurance Benefits...................................... 44
Account Value................................................................. 57
Special Features and Benefits....................................... 59
Termination of Coverage............................................... 69
TAX CONSIDERATIONS........................................... 71
Tax Status of the Company.......................................... 72
Tax Status of the Policy................................................. 72
Diversification and Investor Control Requirements. 73
Tax Treatment of Policy Death Benefits.................... 73
Distributions Other than Death Benefits..................... 74
Other Tax Matters........................................................... 76
ADDITIONAL INFORMATION................................ 79
General Provisions........................................................... 79
Distribution of the Policy................................................ 89
Legal Proceedings............................................................ 91
Financial Statements...................................................... 92
APPENDIX A................................................................ A-1
APPENDIX B................................................................ B-1
APPENDIX C................................................................ C-1
APPENDIX D................................................................ D-1
MORE INFORMATION IS AVAILABLE......... Back Cover
TERMS TO UNDERSTAND
The following is a list of some important terms used throughout this prospectus that have special meaning. It also provides a reference to where each term is defined and discussed more fully.
Term | Page | Term | Page |
Account Value .............................................. | 57 | Net Premium ................................................. | 3 |
Accumulation Unit ....................................... | 57 | Net Surrender Value ..................................... | 5 |
Accumulation Unit Value............................ | 57 | Policy Date .................................................... | 23 |
Base Death Benefit ...................................... | 1 | Segment ......................................................... | 37 |
Death Benefit Proceeds ............................... | 43 | Separate Account ......................................... | 16 |
Guaranteed Interest Division ...................... | 20 | Separate Account Value ............................. | 57 |
Guaranteed Interest Division Value........... | 20 | Stated Death Benefit.................................... | 4 |
Loan Amount ................................................ | 60 | Subaccounts................................................... | 16 |
Loan Division ................................................ | 59 | Target Death Benefit.................................... | 4 |
Loan Division Value .................................... | 59 | Total Death Benefit ..................................... | 47 |
Monthly Processing Date ............................ | 30 | Valuation Date ............................................. | 57 |
Net Account Value........................................ | 7 |
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Additionally, see Appendix D for a glossary of these and other important terms used throughout this prospectus.
“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 policy 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 person’s 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. References in this prospectus to state law identify matters where state law may require variations from what is disclosed in this prospectus. If you would like to review a copy of the policy and riders for your particular state, contact Customer Service or your agent/registered representative.
You may contact Customer Service at: | P.O. Box 5065 Minot, ND 58702-5065 1-877-253-5050 www.voyalifecustomerservice.com |
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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.
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Death Benefits
See Death Benefits, page 37. | · The Stated Death Benefit is the sum of the insurance coverage Segments under your policy and is shown in your Schedule. The Stated Death Benefit changes when there is an increase, decrease or a transaction that causes your policy to change. · The Target Death Benefit is an amount of death benefit coverage scheduled by you at issue and is subject to our approval. It may vary by year. If you do not have the Adjustable Term Insurance Rider, the Target Death Benefit in all years is the same as the Stated Death Benefit. · The Base Death Benefit is the death benefit of your policy and does not include additional death benefits provided by riders attached to your policy, if any. We calculate the Base Death Benefit according to one of the following three death benefit options available under your policy: | |
| > Death Benefit Option 1 – the Base Death Benefit is the greater of the amount of your Stated Death Benefit or your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A; > Death Benefit Option 2 – the Base Death Benefit is the greater of the amount of your Stated Death Benefit plus your Account Value or your Account multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A; or > Death Benefit Option 3 – the Base Death Benefit is the greater of the amount of your Stated Death Benefit plus premiums received minus partial withdrawals taken and the partial withdrawal fees or your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A. | |
· The Total Death Benefit is equal to the Base Death Benefit, plus the death benefit from your Adjustable Term Insurance Rider, if any. · Death Benefit Proceeds are paid if your policy is in force when the insured person dies. · The Death Benefit Proceeds are equal to your Total Death Benefit minus any outstanding Loan Amount, any outstanding fees and charges incurred before the insured person’s death and any outstanding accelerated benefit lien including accrued lien interest. · Until age 121, the amount of the Death Benefit Proceeds will depend on which death benefit option is in effect when the insured person dies. · After age 121, your policy may continue pursuant to the continuation of coverage provision. For details about the changes that are made to your policy at age 121, see Continuation of Coverage, page 39. · 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. | ||
Rider Benefits
See Additional Insurance Benefits, page 44. | · Your policy may include additional insurance benefits, attached by rider. There are two types of rider benefits: | |
| > Optional rider benefits that you must select before they are added to your policy; and > 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, but the available riders may include: | ||
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| > The 20-Year/Age 65 Guaranteed Death Benefit Rider; > The Accelerated Benefit Rider; > The Additional Insured Rider; > The Adjustable Term Insurance Rider; > The Guaranteed Minimum Accumulation Benefit Rider; > The Lifetime Guarantee Death Benefit Rider; > The Overloan Lapse Protection Rider; > The Waiver of Cost of Insurance Rider; and > The Waiver of Specified Premium Rider. |
Transfers
See Transfers, page 61. | · You currently may make an unlimited number of transfers between the Subaccounts and to the Guaranteed Interest Division. Transfers are, however, subject to limits, conditions and restrictions that we or the funds whose shares are involved may impose. See Limits on Frequent or Disruptive Transfers, page 64. · There are certain restrictions on transfers from the Guaranteed Interest Division. · We do not charge for transfers. |
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Reinstatement (continued) |
· If you had an outstanding loan when coverage lapsed, we will reinstate it with accrued but unpaid loan interest to the date of the lapse unless directed otherwise. · When we reinstate your policy we reinstate the surrender charges for the amount and time as if your policy had not 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 tax and/or legal adviser before reinstating your policy. |
The decision to purchase a policy should be discussed with your agent/registered representative. Make sure you understand the policy’s investment options, its other features and benefits, its risks and the fees and charges you will incur when you consider purchasing the policy and investing in the Subaccounts of the Separate Account.
Life Insurance Coverage |
· The policy is not a short-term savings vehicle and should be purchased only if you need 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. |
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Fees and Charges
See Fees and Charges, page 28. |
· In the early policy years the surrender charge may exceed the Account 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 policy’s 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 policy’s fees and charges, in the aggregate, are reasonable, but before purchasing a policy you should compare the value that the policy’s 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. |
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Investment Risk
See The Separate Account, page 16.
See The Guaranteed Interest Division, page 20. |
· You should evaluate the policy’s long-term investment potential and risks before purchasing a policy. · For amounts you allocate to the Subaccounts of the Separate Account: |
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> Your values will fluctuate with the markets, interest rates and the performance of the underlying mutual 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 fund’s prospectus and understand the risks associated with the fund before allocating your premiums to its corresponding Subaccount; > The particular risks associated with each fund are detailed in the fund’s prospectus; and > There is no assurance that any fund will achieve its stated investment objective. |
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· For amounts you allocate to the Guaranteed Interest Division: |
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> Interest rates we declare will change over time, but not more frequently than every policy anniversary; and > You assume the risk that interest rates may decline, although never below the guaranteed minimum annual rate of 3.00%. |
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· You should monitor and periodically re-evaluate your allocations to determine if they are still appropriate. |
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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 make a premium payment or make certain other transactions. See Transaction Fees and Charges, page 28.
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges | ||
Premium Expense Charge | · When you make a premium payment.
| · 9.00% of premium up to target premium and 6.00% of premium in excess of target premium in Segment year 1, and lower thereafter. |
Partial Withdrawal Fee | · When you take a partial withdrawal.
| · $10.00. |
Surrender Charge1 | · During the first ten Segment years when you surrender your policy, decrease your Stated Death Benefit, take a partial withdrawal that decreases your Stated Death Benefit or allow your policy to lapse.
| Range from · $3.40 to $42.00 per $1,000.00 of Stated Death Benefit.
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Representative insured person · $20.00 per $1,000.00 of Stated Death Benefit. · The representative insured person is a male, age 40. · The rates shown for the representative insured person are for the first policy year. | ||
Excess Illustration Fee2 | · Each time you request an illustration after the first each policy year.
| · $25.00. |
1 The surrender charge rates shown are for the first Segment year. Surrender charge rates generally decline beginning by the fourth Segment year and reach zero beginning in the eleventh Segment year. The rates vary based on the insured person’s age at the time each Segment of Stated Death Benefit is established and gender. The rates shown for the representative insured person are for the first policy year, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
Periodic Fees and Charges. The following table describes the maximum guaranteed charges that could be deducted each month on the Monthly Processing Date, not including fund fees and expenses. See Periodic Fees and Charges, page 30.
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges3 | ||
Cost of Insurance Charge4 | · On each Monthly Processing Date. | Range from · $0.02 to $83.33 per $1,000.00 of net amount at risk.
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Representative insured person · $0.14 per $1,000.00 of net amount at risk for each Segment of your Stated Death Benefit. · The representative insured person is a male, age 40. · The rates shown for the representative insured person are for the first policy year.
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Mortality and Expense Risk Charge | · On each Monthly Processing Date. | · 0.025% (0.30% annually) of Account Value invested in the Separate Account.
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Policy Charge5 | · On each Monthly Processing Date.
| · $30.00. |
Administrative Charge6 | · On each Monthly Processing Date. | Range from · $0.03 to $3.85 per $1,000.00 of Stated Death Benefit.
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Representative insured person · $0.11 per $1,000.00 of Stated Death Benefit. · The representative insured person is a male, age 40 in the super-preferred no tobacco risk class and fully underwritten. · The rates shown for the representative insured person are for the first policy year.
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Loan Interest Charge | · Accrues daily but is due in arrears on each policy anniversary.
| · 3.75% per annum of the amount held in the Loan Division in policy years 1–5.7 |
3 This table shows the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown, and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
4 The cost of insurance rates vary based on policy duration and the insured person’s age, gender, underwriting type and risk class. Different rates will apply to each Segment of Stated Death Benefit. The rates shown for the representative insured person are for the first policy year and generally increase each year thereafter. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
5 The policy charge varies based on the amount of Stated Death Benefit, policy duration and underwriting type. See Policy Charge, page 31, for more detail about the policy charge rates.
6 The administrative charge rates vary based on the Segment duration and the insured person’s age, gender, underwriting type and risk class and generally decrease after the fifth and tenth Segment years. The rates shown for the representative insured person are for the first policy year. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration. See Administrative Charge, page 32, for information about how the amount of the administrative charge is determined.
Rider Fees and Charges. The following tables describe the charges or costs associated with each of the rider benefits. See Rider Fees and Charges, page 32.
20-Year/Age 65 Guaranteed Death Benefit Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges8 | ||
20-Year/Age 65 Guaranteed Death Benefit Rider | · On each Monthly Processing Date during the guarantee period. | Range from · $0.001 to $0.02 per $1,000.00 of guaranteed coverage.
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Representative insured person · $0.004 per $1,000.00 of guaranteed coverage. · The representative insured person is age 40. · The rates shown for the representative insured person are for the first rider year.
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Accelerated Benefit Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges8 | ||
Accelerated Benefit Rider Administrative Charge | · On the date the acceleration request is processed.
| · $300.00 per acceleration request. |
Accelerated Benefit Lien Interest Charge | · Interest on the amount of the lien accrues daily and is added to the amount of the lien. | · The greater of: > The current yield on 90 day treasury bills; or > The current maximum statutory adjustable policy loan interest rate.
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Additional Insured Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges8 | ||
Additional Insured Rider Charge10 | · On each Monthly Processing Date. | Range from · $0.02 to $83.33 per $1,000.00 of rider benefit.
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Representative insured person · $0.04 per $1,000.00 of rider benefit. · The representative insured person is a female, age 25 in the no tobacco risk class. · The rates shown for the representative insured person are for the first rider year.
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8 These tables show the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown, and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
9 The rates for this rider vary based on the insured person’s age at issue. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
10 The rates for this rider vary based on the additional insured person’s age, gender and risk class and generally increase with age. The rates shown for the representative insured person are for the first rider year. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
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Rider Fees and Charges (continued).
Adjustable Term Insurance Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges11 | ||
Adjustable Term Insurance Rider Cost of Insurance | · On each Monthly Processing Date. | Range from · $0.02 to $83.33 per $1,000.00 of rider benefit.
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Representative insured person · $0.17 per $1,000.00 rider benefit. · The representative insured person is a male, age 40. · The rates shown for the representative insured person are for the first rider year.
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Adjustable Term Insurance Rider Administrative Charge13 | · On each Monthly Processing Date. | Range from · $0.01 to $2.73 per $1,000.00 of the difference between the Target Death Benefit and the Stated Death Benefit.
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Representative insured person · $0.06 per $1,000.00 rider benefit. · The representative insured person is a male, age 40 in the super-preferred no tobacco risk class and fully underwritten. · The rates shown for the representative insured person are for the first rider year.
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Guaranteed Minimum Accumulation Benefit Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges11 | ||
Guaranteed Minimum Accumulation Benefit Rider Charge | · On each Monthly Processing Date during the guarantee period.
| · 0.10% (1.15% on an annual basis) of the minimum accumulation value.14 |
11 These tables show the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the guaranteed maximum charges shown, and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
12 The rates for this rider vary based on rider duration and the insured person’s age, gender, underwriting type and risk class and generally increase each year. The rates shown for the representative insured person are for the first rider year. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
13 The rates for this rider vary based on rider duration and the insured person’s gender, underwriting type and risk class and generally decrease after the fifth and tenth rider years. The rates shown for the representative insured person are for the first rider year. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
14 The minimum accumulation value equals the sum of all premium payments we have received for the policy and attached riders minus all partial withdrawals and all fees and charges deducted from your Account Value (or that may have been waived under the provisions of the policy or another rider), with the result accrued at an annual interest rate that may vary by policy year. The monthly percentage shown has been rounded up to the nearest tenth of one percent and the actual percentage charged is lower than this rounded amount. See Guaranteed Minimum Accumulation Benefit Rider, page 50, for more detail about the features and benefits of and charge for this rider, (including the unrounded monthly amount of the charge).
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Rider Fees and Charges (continued).
Lifetime Guaranteed Death Benefit Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges15 | ||
Lifetime Death Benefit Guarantee Charge16 | · On each Monthly Processing Date during the guarantee period. | Range from · $0.02 to $0.06 per $1,000.00 of guaranteed coverage.
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Representative insured person · $0.03 per $1,000.00 of guaranteed coverage. · The representative insured person is age 50. · The rates shown for the representative insured person are for the first rider year.
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Overloan Lapse Protection Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges15 | ||
Overloan Lapse Protection Rider | · On the Monthly Processing Date on or next following the date we receive your request to exercise this rider’s benefit.
| · 3.50% of the Account Value. 17 |
Waiver of Cost of Insurance Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges15 | ||
Waiver of Cost of Insurance Rider Charge18 | · On each Monthly Processing Date.
| Range from · $3.82 to $19.48 per $100.00 of rider coverage.
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Representative insured person · $7.04 per $100.00 of rider coverage. · The representative insured person is age 35. · The rates shown for the representative insured person are for the first rider year.
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15 These tables show the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown, and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
16 The rates for this rider vary based on the insured person’s age at issue. The rates shown for the representative insured person are for the first rider year and they generally increase thereafter. The rates shown may have been rounded to the nearest penny, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
17 The Account Value is equal to the sum of the value of amounts allocated to the Subaccounts of the Separate Account, amounts allocated to the Guaranteed Interest Division and any amounts set aside in the Loan Division.
18 The rates for this rider vary based on several factors that may include rider duration and the insured person’s age. Rates generally increase each year after the first rider year until age 59 and generally decrease thereafter. The rates shown for the representative insured person are for the first rider year, and you may get information about the charge that would apply to you by contacting your agent/registered representative for a personalized illustration.
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Rider Fees and Charges (continued).
Waiver of Specified Premium Rider
Charge | When Deducted | Amount Deducted |
Maximum Guaranteed Charges19 | ||
Waiver of Specified Premium Rider Charge20 | · On each Monthly Processing Date.
| Range from · $1.70 to $25.40 per $100.00 of rider coverage.
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Representative insured person · $2.20 per $100.00 of rider coverage. · The representative insured person is age 35 and fully underwritten. · The rates shown for the representative insured person are for the first rider year.
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Fund Fees and Expenses. The following table shows the minimum and maximum total annual fund expenses that you may pay during the time you own the policy. Fund expenses vary from fund to fund and may change from year to year. For more detail about a fund’s fees and expenses, review the fund’s prospectus. See also Fund Fees and Expenses, page 33.
| Minimum | Maximum |
Total Annual Fund Expenses (deducted from fund assets)21 | 0.27% | 1.25% |
Total annual fund expenses are deducted from amounts that are allocated to the fund. They include management fees and other expenses and may include distribution (12b-1) fees. Other expenses may include service fees that may be used to compensate service providers, including the company and its affiliates, for administrative and policy owner services provided on behalf of the fund. Distribution (12b-1) fees are used to finance any activity that is primarily intended to result in the sale of fund shares.
If a fund is structured as a “fund of funds,” total annual fund expenses also include the fees associated with the funds in which it invests. Because of this a fund that is structured as a “fund of funds” may have higher fees and expenses than a fund that invests directly in debt and equity securities. For a list of the “fund of funds” available through the policy, see the chart of funds available through the Separate Account on page 17.
19 This table shows the maximum guaranteed charges that may be assessed during any policy year. Current charges may be less than the maximum guaranteed charges shown, and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
20 The rates for this rider vary based on various factors that may include the insured person’s age and/or underwriting type. Rates generally increase each year after the first rider year until age 59 and generally decrease thereafter. The rates shown for the representative insured person are for the first rider year, and you may get information about the charges that would apply to you by contacting your agent/registered representative for a personalized illustration.
Security Life of Denver Insurance Company (“Security Life,” “we,” “us,” “our,” and the “company”) issues the variable universal life insurance policy described in this prospectus and is responsible for providing the policy’s insurance benefits. All guarantees and benefits provided under the policy that are not related to the Separate Account are subject to the claims paying ability of the company and our general account. 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 8055 East Tufts Avenue, Suite 710, Denver, Colorado 80237.
We are an indirect, wholly owned subsidiary of Voya Financial, Inc. (“Voya®”), which until April 7, 2014, was known as ING U.S., Inc. In May, 2013, the common stock of Voya began trading on the New York Stock Exchange (“NYSE”) under the symbol “VOYA” and Voya completed its initial public offering of common stock.
Product Regulation. Our annuity, retirement and investment products are subject to a complex and extensive array of state and federal tax, securities, insurance and employee benefit plan laws and regulations, which are administered and enforced by a number of different governmental and self-regulatory authorities, including state insurance regulators, state securities administrators, state banking authorities, the SEC, the Financial Industry Regulatory Authority (“FINRA”), the Department of Labor (“DOL”), the Internal Revenue Service (“IRS”) and the Office of the Comptroller of the Currency (“OCC”). For example, U.S federal income tax law imposes requirements relating to insurance and annuity product design, administration and investments that are conditions for beneficial tax treatment of such products under the Internal Revenue Code. See TAX CONSIDERATIONS, page 71, for further discussion of some of these requirements. Additionally, state and federal securities and insurance laws impose requirements relating to insurance and annuity product design, offering and distribution and administration. Failure to administer product features in accordance with contract provisions or applicable law, or to meet any of these complex tax, securities or insurance requirements could subject us to administrative penalties imposed by a particular governmental or self-regulatory authority, unanticipated costs associated with remedying such failure or other claims, harm to our reputation, interruption of our operations or adversely impact profitability.
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You may allocate your premium payments to any of the available investment options. These options include Subaccounts of the Separate Account and the Guaranteed Interest Division. The investment performance of a policy depends on the performance of the investment options you choose.
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 registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended (“1940 Act”).
We own all of the assets of the Separate Account and are obligated to pay all amounts due under a policy according to the terms of the policy. Income, gains and losses, whether or not realized, credited to, or charged against, the Separate Account reflect the investment experience of the Separate Account and not the investment experience of our other assets. Additionally, Colorado law provides that we cannot charge the Separate Account with liabilities arising out of any other business we may conduct. This means that if we ever became insolvent, the Separate Account assets will be used first to pay Separate Account policy claims. Only if Separate Account assets remain after these claims have been satisfied can these assets be used to pay owners of other policies and creditors. All guarantees and benefits provided under the policy that are not related to the Separate Account are subject to the claims paying ability of the company and our general account.
The Separate Account is divided into Subaccounts. Each Subaccount invests in a corresponding mutual 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 mutual funds when you allocate premium payments or Account Value to the Subaccounts of the Separate Account.
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Funds Available Through the Separate Account. The following chart lists the mutual funds that are currently available through the Separate Account.
· American Funds Insurance Series® – Growth Fund (Class 2) · American Funds Insurance Series® – Growth-Income Fund (Class 2) · American Funds Insurance Series® – International Fund (Class 2) · BlackRock Global Allocation V.I. Fund (Class III) · Fidelity® VIP Contrafund® Portfolio (Service Class) · Fidelity® VIP Equity-Income Portfolio (Service Class) · M Capital Appreciation Fund1 · M International Equity Fund1 · M Large Cap Growth Fund1 · M Large Cap Value Fund1 · Neuberger Berman AMT Socially Responsive Portfolio® (Class I) · Voya Balanced Portfolio (Class I) · Voya Global Bond Portfolio (Class S) · Voya Global Equity Portfolio (Class I) · Voya Global Perspectives® Portfolio (Class I)2 · Voya Government Liquid Assets Portfolio (Class S) · Voya Growth and Income Portfolio (Class I) · Voya Index Plus LargeCap Portfolio (Class I) · Voya Index Plus MidCap Portfolio (Class I) · Voya Index Plus SmallCap Portfolio (Class I) · Voya Intermediate Bond Portfolio (Class I) · Voya International Index Portfolio (Class S) · Voya Large Cap Growth Portfolio (Class I) · Voya Large Cap Value Portfolio (Class I) · Voya Limited Maturity Bond Portfolio (Class S) · Voya Multi-Manager Large Cap Core Portfolio (Class I) |
· Voya Retirement Growth Portfolio (Class I)2, 3 · Voya Retirement Moderate Growth Portfolio (Class I)2, 3 · Voya Retirement Moderate Portfolio (Class I)2, 3 · Voya RussellTM Large Cap Growth Index Portfolio (Class I) · Voya RussellTM Large Cap Index Portfolio (Class I) · Voya RussellTM Large Cap Value Index Portfolio (Class I) · Voya RussellTM Mid Cap Growth Index Portfolio (Class I) · Voya RussellTM Small Cap Index Portfolio (Class I) · Voya Small Company Portfolio (Class S) · Voya SmallCap Opportunities Portfolio (Class I) · Voya Solution Moderately Aggressive Portfolio (Class I)2 · Voya U.S. Bond Index Portfolio (Class I) · Voya U.S. Stock Index Portfolio (Class I) · VY® Baron Growth Portfolio (Class I) · VY® Clarion Global Real Estate Portfolio (Class S) · VY® Columbia Small Cap Value II Portfolio (Class I) · VY® FMR® Diversified Mid Cap Portfolio (Class I)4 · VY® Invesco Comstock Portfolio (Class I) · VY® Invesco Equity and Income Portfolio (Class I) · VY® Invesco Growth and Income Portfolio (Class S) · VY® JPMorgan Emerging Markets Equity Portfolio (Class I) · VY® JPMorgan Small Cap Core Equity Portfolio (Class I) · VY® Oppenheimer Global Portfolio (Class I) · VY® Pioneer High Yield Portfolio (Class I) · VY® T. Rowe Price Capital Appreciation Portfolio (Class I) · VY® T. Rowe Price Diversified Mid Cap Growth Portfolio (Class I) · VY® T. Rowe Price Equity Income Portfolio (Class I) · VY® T. Rowe Price International Stock Portfolio (Class I) · VY® Templeton Foreign Equity Portfolio (Class I) |
* See Appendix B for further information about the funds available through the Separate Account.
1 The M Funds are only available through broker/dealers associated with the M Financial Group.
2 This fund is structured as a “fund of funds.” See the Fund Fees and Expenses table on page 13 and the Fund of Funds section on page 36 for more information about “fund of funds.”
3 This fund employs a managed volatility strategy. See the Funds With Managed Volatility Strategies section on page 36 for more information about managed volatility funds.
4 FMR® is a registered service mark of FMR LLC. Used with permission.
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See Appendix B to this prospectus for more information about the mutual funds available through the Separate Account, including information about each fund’s investment adviser/subadviser and investment objective. More detailed information about each fund, including information about their investment risks and fees and expenses, can be found in the fund’s current prospectus and Statement of Additional Information. Please read them carefully before investing. You may obtain these documents by contacting Customer Service.
A mutual fund available through the Separate 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 Separate Account is likely to differ from a similarly named retail mutual fund.
Selection of Underlying Funds. The underlying funds available through the policy described in this prospectus are determined by the Company. When determining which underlying funds to make available, we may consider various factors, including, but not limited to, asset class coverage, the alignment of the investment objectives of an underlying fund with our hedging strategy, the strength of the adviser’s or subadviser’s reputation and tenure, brand recognition, performance and the capability and qualification of each investment firm. Another factor that we may consider is whether the underlying fund or its service providers (e.g., the investment adviser or subadvisers) or its affiliates will make payments to us or our affiliates in connection with certain administrative, marketing and support services, or whether affiliates of the fund can provide marketing and distribution support for sales of the policies. (For additional information on these arrangements, see “Revenue from the Funds.”) We review the funds periodically and may, subject to certain limits or restrictions, remove a fund or limit its availability to new investment if we determine that a fund no longer satisfies one or more of the selection criteria and/or if the fund has not attracted significant allocations under the policy. We have included certain of the funds at least in part because they are managed or subadvised by our affiliates.
We do not recommend or endorse any particular fund, and we do not provide investment advice.
Voting Privileges. We invest each Subaccount’s assets in shares of a corresponding mutual fund. We are the legal owner of the fund shares held in the Separate Account, and we have the right to vote on certain issues. Among other things, we may vote on issues described in the fund’s 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. If we determine that we are permitted to vote the shares in our own right, we may do so.
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.
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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 fund’s 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. This means that instructions from a small number of shareholders can determine the outcome of a vote. There is no minimum number of shares for which we must receive instructions before we vote the shares.
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 fund’s Board for the shareholders meeting. We determine the number of fund shares in each Subaccount of your policy by dividing your Separate Account Value in that Subaccount by the net asset value of one share of the matching fund.
Right to Change the Separate Account. We do not guarantee that each fund will always be available for investment through the policy. 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 Separate Account with respect to some or all classes of policies:
· Change the investment objective;
· Offer additional subaccounts that will invest in new funds or fund classes we find appropriate for policies we issue;
· Eliminate Subaccounts;
· Combine two or more Subaccounts;
· Close Subaccounts. We will notify you in advance by a supplement to this prospectus if we close a Subaccount. If a Subaccount is closed or otherwise is unavailable for new investment, unless you provide us with alternative allocation instructions, all future premiums directed to the Subaccount that was closed or is unavailable may be automatically allocated among the other available Subaccounts according to your most recent allocation instructions. If your most recent allocation instructions do not include any available Subaccounts, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting Customer Service. See also the Transfers section of this prospectus, page 61, for information about making Subaccount allocation changes;
· Substitute a new mutual 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 fund’s investment objectives or restrictions;
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> 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 mutual 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 Separate Account from registration under the 1940 Act;
· Operate the Separate Account as a management investment company under the 1940 Act;
· Cause one or more Subaccounts to invest in a mutual 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 agreement’s terms;
· Limit or eliminate any voting privileges for the Separate Account; or
· Make any changes required by the 1940 Act or its rules or regulations.
We reserve the right to transfer separate account assets to another separate account that we determine to be associated with the class of policies to which the policy belongs.
We will not make a change until the change is disclosed in an effective prospectus or prospectus supplement, authorized, if necessary, by an order from the SEC and approved, if necessary, by the appropriate state insurance department(s). 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 Guaranteed Interest Division, you may do so free of charge. Just notify Customer Service.
The Guaranteed Interest Division
You may allocate all or a part of your Net Premium and transfer your Net Account Value into the Guaranteed Interest Division. We declare the interest rate that applies to all amounts in the Guaranteed Interest Division. Although the interest rate will change over time, the interest rate will never be less than 3.00%. Additionally, we guarantee that the interest rate will not change more frequently than every policy anniversary. Interest compounds daily at an effective annual rate that equals the declared rate. We credit interest to the Guaranteed Interest Division on a daily basis. We pay interest regardless of the actual investment performance of our general account. We bear all of the investment risk for the Guaranteed Interest Division.
Your Guaranteed Interest Division Value equals the Net Premium you allocate to the Guaranteed Interest Division, plus interest earned, minus amounts you transfer out or withdraw. It may be reduced by fees and charges assessed against your Account Value.
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The Guaranteed Interest Division 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 Guaranteed Interest Division under the Securities Act of 1933, as amended (“1933 Act”). Also, we have not registered the Guaranteed Interest Division 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 Guaranteed Interest Division and interests in it are generally not subject to regulation under these Acts. All guarantees and benefits provided under the policy that are not related to the Separate Account are subject to the claims paying ability of the company and our general account.
The SEC staff has not reviewed the disclosures in this prospectus relating to the general account and the Guaranteed Interest Division. These disclosures, however, may be subject to certain requirements of the federal securities law regarding accuracy and completeness of statements made.
This prospectus describes our standard Voya VUL-CV variable universal life insurance policy. The policy provides death benefits, 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.
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 company’s management personnel and certain other employees may receive a portion of their employment compensation based on the amount of Account Value allocated to funds affiliated with Voya. You should be aware that there may be alternative products available, and if you are interested in learning more about these other products, contact Customer Service or your agent/registered representative.
We offer policies using full, simplified issue or guaranteed issue underwriting.
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On a fully underwritten 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 and other information about the proposed insured person. Through our underwriting process we also determine the risk class for the proposed insured person if the application is accepted. Risk class is based on such factors as the proposed insured person’s age, gender, health and occupation. 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 may offer policies using simplified issue or guaranteed issue underwriting up to a preset amount of coverage with reduced evidence of insurability as compared to fully underwritten policies. More evidence of insurability is required for policies using full underwriting than simplified issue underwriting and even less evidence is required for policies using guaranteed issue underwriting.
Simplified issue and guaranteed issue underwriting is available for policies covering certain individuals in group or sponsored arrangements. Eligibility generally requires that each proposed insured person:
· Is actively at work at least 30 hours per week performing normal duties at their customary place of employment;
· Has been currently employed and actively at work for the past 90 days and receive tax reporting through either a W-2 or K-1 form (not a 1099);
· Must answer certain health related questions and may be required to provide certain medical information;
· Must indicate tobacco use, type and frequency. Tobacco use includes use of any substance in the past 12 months that contains nicotine; and
· Must consent to be insured.
Whether a policy will require guaranteed issue underwriting or simplified issue underwriting will depend on the nature of the individuals in the group or sponsored arrangement to be covered and such factors as the proposed insured person’s age and the amount of coverage. A proposed insured can be excluded from coverage based on, among other things, serious illness, hospitalization, employment status and/or citizenship.
Guaranteed issue policies and simplified issue policies carry different mortality risks compared to policies that are fully underwritten, and the cost of insurance, policy charge and administrative charge may vary for guaranteed issue policies and simplified issue policies than fully underwritten policies. A policy’s fees and charges do not vary, however, depending on whether simplified issue or guaranteed issue underwriting is used.
Generally, on a current basis, the overall charges are higher for a guaranteed issue and simplified issue policies than for a similar fully underwritten policy. This means that an insured person in a group or sponsored arrangement that uses guaranteed issue underwriting may be able to get individual fully underwritten insurance coverage at a lower overall cost.
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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.
To purchase a policy you must submit an application to us. On that application you will, among other things, select:
· The amount of your Target Death Benefit (which generally must be at least $50,000.00);
· Your initial death benefit option;
· The death benefit qualification test to apply to your policy (we may limit the amount of coverage we will issue on the life of the insured person when the cash value accumulation test is chosen); and
· Any riders or optional benefits.
The “Policy Date” is the date coverage under the policy begins and is the date from which we measure policy years, policy months, policy anniversaries and the Monthly Processing Date. The “insured person” is the person on whose life we issue the policy, and the insured person generally can be no more than age 85 (70 for guaranteed issue policies) on the Policy Date. “Age” under the policy means the insured person’s 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.
Important Information About the Adjustable Term Insurance Rider. It may be to your economic advantage to include 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 46, when deciding the appropriate usage of the Adjustable Term Insurance Rider for your particular situation.
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Premium Payments
Premium payments are flexible and you may choose the amount and frequency of premium payments, within limits, including:
· We may refuse to accept any premium less than $25.00;
· You cannot pay additional premiums after age 121 (except amounts required to keep the policy from lapsing);
· We may refuse to accept any premium that would disqualify your policy as life insurance under Section 7702 of the Internal Revenue Code;
· We may refuse to accept any premium that would cause your policy to become a modified endowment contract under Section 7702A of the Internal Revenue Code without your prior written acknowledgement accepting your policy as a modified endowment contract; and
· We may refuse to accept any premium that does not comply with our anti-money laundering program. See Anti-Money Laundering, page 82.
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 sufficient to keep your policy in force from the Policy Date through the Investment Date. The “Investment Date” is the first 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 schedule pages, is the amount you intend to pay over a certain time period. You may schedule premiums to be paid monthly, quarterly, semiannually or annually. Payment of the scheduled premium does not guarantee that your policy will not lapse, and you may need to pay additional premiums to keep your policy in force. You may receive premium reminder notices for the scheduled premium you selected. 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 Guaranteed Death Benefit Rider, to keep the rider in force your scheduled premium should not be less than the guarantee period annual premium shown in your policy. See Guaranteed Death Benefit Riders, page 43.
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Unscheduled Premium Payments. Generally speaking, you may make unscheduled premium payments at any time, however:
· We may refuse to accept any premium less than $25.00;
· You cannot pay additional premiums after age 121 (except amounts required to keep the policy from lapsing);
· We may refuse to accept or limit the amount of an unscheduled premium payment if it would result in an increase in the amount of the Base Death Benefit required by the federal income tax law definition of life insurance. We may require satisfactory evidence that the insured person is insurable according to our normal underwriting rules for the applicable risk class and rating at the time that you make the unscheduled premium payment if the Base Death Benefit is increased due to an unscheduled premium payment;
· We may require satisfactory evidence that the insured person is insurable according to our normal underwriting rules for the applicable risk class and rating at the time that you make the unscheduled premium payment if an unscheduled premium payment will cause the net amount at risk to increase;
· We will return premium payments that would cause your policy to become a modified endowment contract, unless you have acknowledged in writing the new modified endowment contract status for your policy; and
· Our acceptance of an unscheduled premium payment may be subject to certain issue limitations and conditioned on the availability of reinsurance coverage.
Satisfactory evidence of insurability may include receipt of an application and required medical information.
Target Premium. Target premium for each Segment of Stated Death Benefit 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. Payment of the target premium does not guarantee that your policy will not lapse, and you may need to pay additional premiums 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 each Segment of Stated Death Benefit under your policy is shown in your policy schedule pages. Target premium is not based on your scheduled premium.
Premium Payments Affect Your Coverage. Unless you have an optional Guaranteed Death Benefit Rider, your coverage lasts only as long as you have a positive Net Account 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 70.
Allocation of Net Premium. Until the Investment Date when your initial Net Premium is allocated as described below, we hold premiums in a general suspense account. Premiums held in this suspense account do not earn interest.
We apply the initial Net Premium to your policy on the Investment Date after all of the following conditions have been met:
· We receive the required initial premium;
· All issue requirements have been received by Customer Service; and
· We approve your policy for issue.
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Amounts you designate for the Guaranteed Interest Division will be allocated to that division on the Investment Date. If your state requires return of your premium if you return your policy during the right to examine period, we initially invest amounts you have designated for the Subaccounts of the Separate Account in the Subaccount that invests in the Voya Government 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. This transfer occurs after the initial period, which is five days after the date we mailed your policy to you plus the length of your state’s right to examine period.
If your state provides for return of your Account Value if you return your policy during the right to examine period (or provides no right to examine period), we allocate amounts you designated for the Subaccounts of the Separate Account directly into those Subaccounts.
All Net Premiums we receive after the initial period are allocated to your policy on the Valuation Date of their receipt in good order. 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 100.00%. If your most recent premium allocation instructions includes a mutual fund that corresponds to a Subaccount that is closed to new investment (we will notify you in advance by a supplement to this prospectus if we close a Subaccount) or is otherwise unavailable, Net Premium received that would have been allocated to the Subaccount corresponding to the closed or otherwise unavailable mutual fund may be automatically allocated among the other available Subaccounts according to your most recent allocation instructions. If your most recent allocation instructions do not include any available funds, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting Customer Service. Your failure to provide us with alternative allocation instructions before we return your premium payment(s) may result in your policy entering the 61 day grace period and/or your policy lapsing without value. See Lapse, page 70, for more information about how to keep your policy from lapsing. See also Reinstatement, page 71, for more information about how to put your policy back in force if it has lapsed.
You have the right to examine your policy and return it to us for a refund (for any reason) within the period shown in the policy. The period during which you have this right is called the right to examine period and starts on the date you receive your policy. If you request a right to examine refund or return your policy to us within the right to examine period, we cancel it as of your Policy Date.
If you cancel your policy during the right to examine period, you will receive a refund as determined by state law. Generally, there are two types of right to examine refunds:
· Refund of all premium we have received from you; or
· Refund of your Account Value plus a refund of all charges deducted.
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The type of right to examine refund that applies to you will be specified in your policy. The type of refund will affect the allocation of premiums received before the end of the right to examine period. See Allocation of Net Premium, page 25.
If you apply and qualify, we may issue temporary insurance in an amount equal to the amount of Target Death Benefit for which you applied, up to $1,000,000.00, which includes other in-force coverage you have with us.
Temporary insurance coverage begins when all of the following events have occurred:
· You have completed and signed our temporary insurance coverage form;
· We have received and accepted a premium payment of at least your scheduled premium (selected on your application); and
· The necessary parts of the application are complete.
Unless otherwise provided by state law, temporary insurance coverage ends on the earliest of:
· Five days after we mail the premium refund to the address on your application;
· Five days after we mail notice of termination to the address on your application;
· Your Policy Date;
· The date we refuse to issue a policy based on your application; or
· 90 days after you sign our temporary life insurance coverage form.
There is no death benefit under the temporary insurance coverage if any of the following events occur:
· There is a material misrepresentation in your answers on the temporary insurance coverage form;
· There is a material misrepresentation in statements on your application;
· The person or persons intended to be insured die by suicide or self-inflicted injury; or
· The bank does not honor your premium check or authorized withdrawal.
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 25.
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We deduct fees and charges under the policy to compensate us for:
· Providing the insurance benefits of the policy (including any rider benefits);
· Administering the policy;
· Assuming certain risks in connection with the policy; and
· Incurring expenses in distributing the policy.
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.
We deduct the following transaction fees and charges from your Account Value each time you make certain transactions.
Premium Expense Charge. We deduct a premium expense charge from each premium payment we receive.
Segment Year |
Premium Expense Charge for Amounts up to Target Premium |
Premium Expense Charge for Amounts in Excess of |
1 |
9.00% |
6.00% |
2 + |
4.50% |
3.00% |
This charge helps offset:
· The expenses we incur in selling the policy;
· The costs of various state and local taxes. We pay state and local taxes in almost all states. These taxes vary in amount from state to state and may vary from jurisdiction to jurisdiction within a state; and
· The cost associated with the federal income tax treatment of our deferred acquisition costs. This cost is determined solely by the amount of life insurance premium we receive.
Premium received for each coverage Segment will incur a premium expense charge based on the Segment year in which the premium is received. A Segment is a piece of death benefit coverage and Segment years are measured from the beginning of each Segment effective date. Premium received is allocated to each Segment of death benefit coverage proportionally, based on the target premium for each coverage Segment. Premium expense charge rates decline after the first Segment year.
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 $10.00. We deduct the partial withdrawal fee proportionately from your Guaranteed Interest Division and Separate Account values that remain after the partial withdrawal.
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This fee helps offset the expenses we incur when processing a partial withdrawal.
Surrender Charge. We deduct a surrender charge during the first ten Segment years when you:
· Surrender your policy;
· Allow your policy to lapse;
· Decrease your Stated Death Benefit; or
· Take a partial withdrawal that decreases the amount of your Stated Death Benefit.
The amount of the surrender charge depends on the amount of Stated Death Benefit surrendered or decreased and the surrender charge rates.
When you purchase a policy or increase your Stated Death Benefit, we set surrender charge rates based on the age and gender of the insured person. Surrender charges apply for the first ten years of each Segment of Stated Death Benefit. Surrender charge rates generally decline beginning in the fourth Segment year and reach zero beginning in the eleventh 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 37. The maximum rates that apply to you will be set forth in your policy. See the Transaction 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 Stated Death Benefit, the surrender charge will reduce your Account Value. If there are multiple Segments of Stated Death Benefit, 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 Account Value because the surrender charge may be more than the cumulative premiums paid 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.
Excess Illustration Fee. We currently do not assess this fee, but unless prohibited under state law, we reserve the right to assess a fee of up to $25.00 for each policy illustration that you request after the first each policy year.
This fee helps offset the costs we incur when processing requests for excess illustrations.
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Redemption Fees. If applicable, we may deduct from your Account Value the amount of any redemption fees imposed by the underlying mutual funds as a result of partial withdrawals, transfers or other transactions you initiate and remit such fees back to that fund. Redemption fees, if any, are separate and distinct from any transaction charges or other charges deducted from your Account Value.
We deduct the following periodic fees and charges from your Account Value on the Monthly Processing Date. The first Monthly Processing Date is the Policy Date, or the Investment Date, if later. Subsequent Monthly Processing Dates are 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 Guaranteed Interest Division in the same proportion that your value in each has to your Net Account Value.
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 Stated Death Benefit. The net amount at risk as calculated on each Monthly Processing Date equals the difference between:
· Your current Base Death Benefit, discounted to take into account one month’s interest earnings at an assumed 3.00% annual interest rate; and
· Your Account Value minus the periodic fees and charges due on that date, other than cost of insurance charges.
Monthly cost of insurance rates are based on the insured person’s age at issue and each date you increase your insurance coverage (a “Segment date”), gender, underwriting type, risk class and Segment year. They will not, however, be greater than the guaranteed maximum cost of insurance rates shown in the policy, which are based on the 2001 Commissioner’s Standard Ordinary, Sex Distinct, Unismoke, Ultimate Mortality Tables, age nearest birthday. 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. The maximum rates that apply to you will be set forth in your policy. See the Periodic Fees and Charges table on page 9 for the maximum guaranteed cost of insurance rates and the rates for a representative insured person.
Separate cost of insurance rates apply to each Segment of your Stated Death Benefit. The maximum rates for the initial Segment and each new Segment of your Stated Death Benefit will be printed in your policy schedule pages.
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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 Account Value, namely:
· The Net Premium applied to your policy;
· The fees and charges we deduct;
· Any partial withdrawals you take;
· Interest earnings on the amounts allocated to the Guaranteed Interest Division;
· Interest earned on amounts held in the Loan Division; and
· The investment performance of the funds underlying the Subaccounts of the Separate Account.
We calculate the net amount at risk separately for each Segment of your Stated Death Benefit. 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 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 Account Value.
Mortality and Expense Risk Charge. Each month we may deduct from your Account Value a mortality and expense risk charge based on the amount invested in the Separate Account according to the following rates:
Percentage of the Amount Invested in the Separate Account |
|
Current |
Guaranteed |
0.00% |
0.025% (0.30% on an annual basis) |
This charge, if assessed, will help 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 Separate Account are greater than we estimated.
Policy Charge. Each month we deduct a policy charge. This charge varies based on underwriting type, duration and the amount of Stated Death Benefit. The current policy charge each month for policies with at least $100,000.00 in Stated Death Benefit is as follows:
Policy Years |
Fully Underwritten |
Regular |
Select |
Current |
Current |
Current |
|
1-5 |
$30.00 |
$30.00 |
$30.00 |
6-10 |
$15.00 |
$30.00 |
$15.00 |
11-20 |
$10.00 |
$20.00 |
$15.00 |
21+ |
$8.00 |
$20.00 |
$15.00 |
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The guaranteed policy charge for all policies with at least $100,000.00 in Stated Death Benefit and the current and guaranteed policy charge for all policies with less than $100,000.00 in Stated Death Benefit is $30.00 per month in all policy years.
This charge helps compensate us for the costs associated with:
· Processing applications;
· Conducting medical examinations;
· Establishing policy records; and
· Underwriting.
Administrative Charge. Each month we deduct an administrative charge equal to our current monthly administrative charge rates multiplied by the amount of your Stated Death Benefit for each Segment divided by 1,000. We calculate the administrative charge separately for each Segment of your Stated Death Benefit. The monthly administrative charge rates vary depending on the Segment duration and the insured person’s age, gender, underwriting type and risk class and generally decrease after the fifth and tenth Segment years. 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:
· Billing and collecting premiums;
· Processing claims and policy transactions;
· Keeping records;
· Reporting and communicating with policy owners; and
· Our overhead and other expenses.
There may be separate transaction charges, monthly fees and charges or other costs associated with the riders available under the policy. See the Rider Fees and Charges tables beginning on page 10, the Optional Rider Benefits section on page 44 and the Automatic Rider Benefits section on page 53 for more information about the charges and costs associated with the rider benefits.
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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:
· Certain groups or sponsored arrangements (including our employees, employees of our affiliates, our appointed sales agents and certain family members of each of these groups of individuals);
· Corporate or business policy owners/purchasers (including sales related to a corporate or business policy owner’s election to substitute one insured person who is an employee for another); or
· Our policyholders or the policyholders of our affiliated companies.
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.
As shown in the fund prospectuses and described in the Fund Fees and Expenses table on page 13 of this prospectus, each underlying mutual fund deducts management/investment advisory fees from the amounts allocated to the fund. In addition, each underlying mutual fund deducts other expenses, which may include service fees that may be used to compensate service providers, including the company and its affiliates, for administrative and policy owner services provided on behalf of the fund. Furthermore, certain underlying mutual 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. Fund fees and expenses are deducted from the value of the fund shares on a daily basis, which in turn affects the value of each Subaccount that purchases fund shares. Fund fees and expenses are one factor that impacts the value of a fund’s shares. To learn more about fund fees and expenses, the additional factors that can affect the value of a fund’s shares and other important information about the funds, refer to the fund prospectuses.
Less expensive share classes of the underlying mutual funds offered through this policy may be available for investment outside of this policy. You should evaluate the expenses associated with the underlying mutual funds available through this policy before making a decision to invest.
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Revenue from the Funds
The company or its affiliates may receive compensation from each of the underlying mutual funds or from the funds’ affiliates. This revenue may include:
· A share of the management fee;
· Service fees;
· For certain share classes, 12b-1 fees; and
· Additional payments (sometimes referred to as revenue sharing).
12b-1 fees are used to compensate the company and its affiliates for distribution related activity. Service fees and additional payments (sometimes collectively referred to as sub-accounting fees) help compensate the company, and its affiliates, for administrative, recordkeeping or other services that we provide to the funds or the funds’ affiliates, such as:
· Communicating with customers about their fund holdings;
· Maintaining customer financial records;
· Processing changes in customer accounts and trade orders (e.g., purchase and redemption requests);
· Recordkeeping for customers, including subaccounting services;
· Answering customer inquiries about account status and purchase and redemption procedures;
· Providing account balances, account statements, tax documents and confirmations of transactions in a customer’s account;
· Transmitting proxy statements, annual and semi-annual reports, fund prospectuses and other fund communications to customers; and
· Receiving, tabulating and transmitting proxies executed by customers.
The management fee, service fees and 12b-1 fees are deducted from fund assets. Any such fees deducted from fund assets are disclosed in the fund prospectuses. Additional payments, which are not deducted from fund assets and may be paid out of the legitimate profits of fund advisers and/or other fund affiliates, do not increase, directly or indirectly, fund fees and expenses, and we may use these additional payments to finance distribution.
The amount of revenue the company may receive from each of the underlying mutual funds or from the funds’ affiliates may be substantial, although the amount and types of revenue vary with respect to each of the funds offered through the policy. This revenue is one of several factors we consider when determining the policy fees and charges and whether to offer a fund through our policies. Fund revenue is important to the company’s profitability, and it is generally more profitable for us to offer affiliated funds than to offer unaffiliated funds.
Assets allocated to affiliated funds, meaning mutual funds managed by Directed Services LLC, Voya Investments, LLC or another company affiliate, generate the largest dollar amount of revenue for the company. Affiliated funds may also be subadvised by a company affiliate or by an unaffiliated third party. Assets allocated to unaffiliated funds, meaning funds managed by an unaffiliated third party, generate lesser, but still substantial dollar amounts of revenue for the company. The company expects to earn a profit from this revenue to the extent it exceeds the company’s expenses, including the payment of sales compensation to our distributors.
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Revenue Received from Affiliated Funds. The revenue received by the company from affiliated mutual funds may be based either on an annual percentage of average net assets held in the fund by the company or a share of the fund’s management fee.
In the case of affiliated funds subadvised by unaffiliated third parties, any sharing of the management fee between the company and the affiliated investment adviser is based on the amount of such fee remaining after the subadvisory fee has been paid to the unaffiliated subadviser. Because subadvisory fees vary by subadviser, varying amounts of revenue are retained by the affiliated investment adviser and ultimately shared with the company. The sharing of the management fee between the company and the affiliated investment adviser does not increase, directly or indirectly, fund fees and expenses. The company may also receive additional compensation in the form of intercompany payments from an affiliated fund’s investment adviser or the investment adviser’s parent in order to allocate revenue and profits across the organization. The intercompany payments and other revenue received from affiliated funds provide the company with a financial incentive to offer affiliated funds through the policy rather than unaffiliated funds.
Additionally, in the case of affiliated funds subadvised by third parties, no direct payments are made to the company or the affiliated investment adviser by the subadvisers. However, subadvisers my provide reimbursement for employees of the company or its affiliates to attend business meetings or training conferences.
Revenue Received from Unaffiliated Funds. Revenue received from each of the unaffiliated mutual 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.
If the unaffiliated fund families currently offered through the policy that made payments to us were individually ranked according to the total amount they paid to the company or its affiliates in 2016 in connection with the registered variable life insurance policies issued by the company, that ranking would be as follows:
· American Funds Insurance Series®;
· Fidelity® Variable Insurance Product Portfolios;
· BlackRock V.I. Funds; and
· Neuberger Berman Advisers Management Trust.
If the revenues received from the affiliated funds were taken into account when ranking the funds according to the total dollar amount they paid to the company or its affiliates in 2016, the affiliated funds 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 fund’s 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 representatives and wholesalers rather than monetary benefits. These benefits and opportunities may include, but are not limited to, co-branded marketing materials, targeted marketing sales opportunities, training opportunities at meetings, training modules for personnel and opportunities to host due diligence meetings for representatives and wholesalers.
Please note that certain management personnel and other employees of the company or its affiliates may receive a portion of their total employment compensation based on the amount of net assets allocated to affiliated funds. See Distribution of the Policy, page 89.
Certain funds may be structured as “fund of funds.” These funds may have higher fees and expenses than a fund that invests directly in debt and equity securities because they also incur the fees and expenses of the underlying funds in which they invest. These funds are affiliated funds, and the underlying funds in which they invest may be affiliated as well. The fund prospectuses disclose the aggregate annual operating expenses of each fund and its corresponding underlying fund or funds. These funds are identified in the list of funds available through the Separate Account on page 17.
Funds With Managed Volatility Strategies
As described in more detail in the fund prospectuses, certain funds employ a managed volatility strategy that is intended to reduce the fund’s overall volatility and downside risk, and to help us manage the risks associated with providing certain guarantees under the policy. During rising markets, the hedging strategies employed to manage volatility could result in your Separate Account Value rising less than would have been the case if you had been invested in a fund with substantially similar investment objectives, policies and strategies that does not utilize a volatility management strategy. In addition, the cost of these hedging strategies may have a negative impact on investment performance. On the other hand, investing in funds with a managed volatility strategy may be helpful in a declining market with higher market volatility because the hedging strategy will reduce your equity exposure in such circumstances. In such cases, your Separate Account Value may decline less than would have been the case if you had not invested in funds with a managed volatility strategy. There is no guarantee that a managed volatility strategy can achieve or maintain the fund’s optimal risk targets, and the fund may not perform as expected. Funds that employ a managed volatility strategy are identified in the list of funds available through the Separate Account on page 17.
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You decide the amount of life insurance protection you need, now and in the future. The Stated Death Benefit is the sum of the coverage Segments under your policy and the amount of your Stated Death Benefit in effect on the Policy Date is your initial coverage Segment. The Stated Death Benefit changes when there is an increase, decrease or a transaction that causes your policy to change.
The Target Death Benefit is an amount of death benefit coverage scheduled by you at issue and is subject to our approval. It may vary by year. If you do not have the Adjustable Term Insurance Rider, the Target Death Benefit in all years is the same as the Stated Death Benefit. Generally, we require a minimum of $50,000.00 of Target Death Benefit to issue your policy. We may lower this minimum for certain group, sponsored or corporate purchasers.
It may be to your economic advantage to include part of your insurance coverage under the Adjustable Term Insurance Rider. Talk to your agent/registered representative about the appropriate usage of the Adjustable Term Insurance Rider in your particular situation. See Important Information About the Adjustable Term Insurance Rider, page 23.
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, however changes scheduled for the future will be effective on the applicable policy anniversary.
There may be underwriting or other requirements that must be met before we will approve a change. If we approve your requested change 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 Customer Service so that we may do this for you.
Changes in the amount of your insurance coverage must be for at least $1,000.00.
You may request an increase in the amount of your insurance coverage, subject to the following:
· Subject to certain exceptions, increases after age 85 (age 70 for guaranteed issue and simplified issue policies) are not allowed; and
· Increases are subject to underwriting approval and such approval may be conditioned on certain issue limitations and availability of reinsurance coverage.
See also, Adjustable Term Insurance Rider, page 46.
A requested increase in Stated Death Benefit will cause a new coverage Segment to be created. A Segment is a piece of insurance coverage. Once we create a new Segment, it is permanent unless the law requires differently.
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Each new Segment will have:
· A new premium expense charge;
· New cost of insurance charges, guaranteed and current;
· New administrative charges;
· A new incontestability period;
· A new suicide exclusion period;
· A new target premium; and
· A new surrender charge.
If a death benefit option change causes the amount of Stated Death Benefit to increase or decrease, no new Segment is created. Instead, the size of each existing Segment is changed.
In determining the net amount at risk for each coverage Segment, we allocate the net amount at risk among the Segments of Stated Death Benefit in the same proportion that each Segment bears to the total amount of Stated Death Benefit.
Refusal of a scheduled increase or your request to change the amount of your insurance coverage will terminate all future scheduled increases. Certain requests to increase the amount of your insurance coverage may also cancel all future scheduled increases.
You may decrease the amount of your insurance coverage, however, decreases below the minimum we require to issue you a policy are not allowed.
Decreases in insurance coverage may result in:
· Surrender charges on the amount of the decrease;
· Reduced target premium amounts; and
· Reduced cost of insurance charges.
Decreases in the amount of insurance coverage will first reduce the amount of your Target Death Benefit. We decrease the amount of Stated Death Benefit only after your Adjustable Term Insurance Rider coverage is reduced to zero. If you have more than one Segment, we divide decreases in Stated Death Benefit among your coverage Segments pro rata unless the 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 tax and/or legal adviser before changing your amount of insurance coverage. See Modified Endowment Contracts, page 74.
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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 person’s 121st birthday (the “continuation of coverage period”), unless prohibited by state law. If you do not surrender your policy before this date, on this date:
· The amount of your Target Death Benefit becomes your Stated Death Benefit amount;
· Death Benefit Options 2 and 3 are converted to Death Benefit Option 1, if applicable;
· All riders are terminated;
· Your Net Account Value is transferred into the Guaranteed Interest Division and subsequent transfers into the Subaccounts are not allowed; and
· Dollar cost averaging and automatic rebalancing programs are terminated.
Your insurance coverage continues in force until the death of the insured person, unless the policy lapses or is surrendered. However:
· We accept no further premium payments (except amounts required to keep the policy from lapsing); and
· We deduct no further fees and charges except transaction fees and charges, if applicable.
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 may become greater than your Account 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 Account Value. There is no surrender charge during this period. All other normal consequences of surrender apply. See Surrender, page 69.
The continuation of coverage feature may not be 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 Account Value. Contact your agent/registered representative or Customer Service to find out if this feature is available in your state and which type of death benefit applies in your state.
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.
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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 Code’s 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 Account 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 Account 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 Guaranteed Interest Division 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 policy’s Account Value not to exceed at any time the net single premium necessary to fund the policy’s 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 Account Value at all times. The death benefit at all times must be at least equal to an actuarially determined factor, depending on the insured person’s age and gender at any point in time, multiplied by the Account 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 Account 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 Account Value. We may limit the amount of coverage we will issue on the life of the insured person when the cash value accumulation test has been chosen.
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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 121.
Death Benefit Option 1. Under Death Benefit Option 1, the Base Death Benefit is the greater of:
· The amount of Stated Death Benefit; or
· Your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A.
Under this option your Base Death Benefit will remain level unless your Account Value multiplied by the appropriate factor described in Appendix A exceeds the amount of Stated Death Benefit. In this case, your death benefit will vary as the Account Value varies.
With Death Benefit Option 1, positive investment performance generally reduces your net amount at risk, which lowers your policy’s cost of insurance charge. Option 1 also offers insurance coverage at a set amount with potentially lower cost of insurance charges over time.
Death Benefit Option 2. Under death benefit Option 2, the Base Death Benefit is the greater of:
· The amount of Stated Death Benefit plus your Account Value; or
· Your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A.
Under this option your Base Death Benefit will vary as the Account Value varies, and investment performance will be reflected in your insurance coverage.
Death Benefit Option 2 is not available after age 121. If Death Benefit Option 2 is in effect at age 121, it automatically converts to Death Benefit Option 1. See Continuation of Coverage, page 39.
Death Benefit Option 3. Under Death Benefit Option 3, the Base Death Benefit is the greater of:
· The amount of Stated Death Benefit plus premiums received minus partial withdrawals taken and partial withdrawal fees; or
· Your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A.
Under this option your Base Death Benefit will vary as you pay premiums and take partial withdrawals or if your Account Value multiplied by the appropriate factor described in Appendix A exceeds the amount of Stated Death Benefit plus premiums received minus partial withdrawals taken.
Death Benefit Option 3 is not available after age 121. If Death Benefit Option 3 is in effect at age 121, it automatically converts to Death Benefit Option 1. See Continuation of Coverage, page 39.
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Which Death Benefit Option to Choose. If you are satisfied with the amount of your Stated Death Benefit and prefer to have premium payments and favorable investment performance reflected to the maximum extent in the Account 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 121 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 the amount of your Stated Death Benefit and Target Death Benefit amounts but it will not change the amount of your Base Death Benefit or Total Death Benefit. We may not approve a death benefit option change if it reduces the total 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 Stated Death Benefit will change as follows:
Change From: |
Change To: |
Stated Death Benefit Following the Change: |
Death Benefit Option 1 |
Death Benefit Option 2 |
· Your Stated Death Benefit before the change minus your Account Value as of the effective date of the change. |
Death Benefit Option 2 |
Death Benefit Option 1 |
· Your Stated Death Benefit before the change plus your Account Value as of the effective date of the change. |
Death Benefit Option 3 |
Death Benefit Option 1 |
· Your Stated Death Benefit before the change plus the sum of all premium payments we have received minus all partial withdrawals and partial withdrawal fees 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 Customer Service 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 is created. Instead, the size of each existing Segment is changed. If you change death benefit options, there is no change to the amount of term insurance coverage if you have the Adjustable Term Insurance Rider. See Adjustable Term Insurance Rider, page 46.
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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 Stated Death Benefit. Additionally, we do not adjust the target premium when you change your death benefit option. See Surrender Charge, page 29.
If your death benefit option is changed to Death Benefit 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 Account 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 tax and/or legal adviser before making changes.
After the insured person’s 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:
· Your Total Death Benefit; minus
· Any outstanding Loan Amount; minus
· Any outstanding fees and charges incurred before the insured person’s death; minus
· Any outstanding accelerated benefit lien including accrued lien interest.
The death benefit is calculated as of the date of the insured person’s death and will vary depending on the death benefit option you have chosen.
We will pay the Death Benefit Proceeds within seven days of when we receive due proof of the death claim. Due proof of the death claim means we have received:
We will pay interest on the Death Benefit Proceeds from the date of the Insured's death to the date of payment. Interest will be at a rate we declare, or at a higher rate required by law.
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Guaranteed Death Benefit Riders
The following optional Guaranteed Death Benefit Riders may be available and provide that the policy will not lapse even if the Net Account Value is not enough to pay the periodic fees and charges each month:
· 20-Year/Age 65 Guaranteed Death Benefit Rider; and
· Lifetime Guaranteed Death Benefit Rider.
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 Guaranteed Death Benefit Rider, page 44; and Lifetime Guaranteed Death Benefit Rider, page 51.
Your policy may include additional insurance benefits, attached by rider. There are two types of riders:
· Those that provide optional benefits that you must select before they are effective; and
· Those that automatically come with the policy.
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.
Optional Rider Benefits
The following optional riders may have an additional cost, but each rider may be cancelled at any time. Adding or canceling riders may have tax consequences. See Modified Endowment Contracts, page 74.
20-Year/Age 65 Guaranteed Death Benefit Rider. The 20-Year/Age 65 Guaranteed Death Benefit 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 and any outstanding Loan Amount are at least equal to the sum of the guarantee period monthly premium to the next Monthly Processing Date; and
· Your Net Account Value meets one of the following diversification requirements:
> Your Net Account Value is allocated to at least five investment options with no more than 35.00% invested in any one investment option; or
> At least 65.00% of your Net Account Value is allocated among the Voya Global Perspectives®, Voya Retirement Growth, Voya Retirement Moderate Growth or Voya Retirement Moderate Portfolios.
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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. 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 Target Death Benefit minus your Account Value. See the Rider Fees and Charges tables beginning on page 10 for the minimum and maximum 20-Year/Age 65 Guaranteed Death Benefit Rider charge rates and the rates for a representative insured person.
You should consider the following when deciding whether to add the 20-Year/Age 65 Guaranteed Death Benefit Rider to your policy:
· This rider is available for issue ages 25-75;
· You may add this rider only when you apply for the base policy and the guarantee period begins on the Policy Date;
· The guarantee period annual premium required to keep this rider in effect will be set forth in your policy and will be based on monthly rates that vary according to the insured person’s gender, risk class, age, underwriting type and death benefit option selected;
· If your policy benefits change, the guarantee period annual premium for this rider will also change;
· Transfers between investment options that are made in response to our notice to you that your policy is not sufficiently diversified will not count as transfers for purposes of any limits or restrictions on transfers that we may impose (see Transfers, page 61);
· This rider covers only your base policy and Adjustable Term Insurance Rider, if any. If your policy and any Adjustable Term Insurance Rider are kept in force because of the guarantee under this rider, coverage under all other riders may terminate;
· This rider may not be available for certain risk classes or underwriting types;
· This rider cannot be added to a policy with Death Benefit Option 3 or the Lifetime Guaranteed Death Benefit Rider;
· You may terminate this rider at any time during the guarantee period upon written notice to us;
· A loan may cause the termination of this guarantee because we deduct your outstanding Loan Amount from cumulative premiums paid when calculating whether you have paid sufficient premiums to keep the guarantee in effect; and
· Even if this rider terminates, your policy will not necessarily lapse (see Lapse, page 70).
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. 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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Additional Insured Rider. This rider provides death benefits upon the death of an insured person’s spouse or child (or the partner or child if required by the civil union/domestic partnership laws of the state in which your policy is delivered). The additional insured person under this rider can be no older than age 85. You may add up to five Additional Insured Riders to your policy. We require proof of insurability for each additional insured person. Minimum coverage for each additional insured person is $10,000.00 for ages 0 to 14 and $50,000.00 for ages 15 and older. Maximum coverage for all additional insured persons is five times your Stated Death Benefit. There is no defined premium for a given amount of Additional Insured Rider coverage. Instead, we deduct a separate monthly cost of insurance charge from your Account Value. The cost of insurance for this rider is calculated as the monthly cost of insurance rate for the rider coverage(s) multiplied by the Additional Insured Rider death benefit(s) in effect as of the Monthly Processing Date. The cost of insurance rates are determined by us from time to time. They are based on the issue age(s), gender(s) and risk class(es) of the additional insured person(s), as well as the length of time since the rider was added to your policy. For additional insured attained ages 16 and over, rates for this rider will not exceed the levels in the 2001 Commissioner’s Standard Ordinary Sex Distinct, Smoker Distinct Ultimate Mortality Table. For additional insured attained ages below 16, rates for this rider will not exceed the levels in the 2001 Commissioner’s Standard Ordinary Sex Distinct, Smoker Composite Ultimate Mortality Table. See the Rider Fees and Charges tables beginning on page 10 for the minimum rates, maximum rates and the rates for a representative additional insured person.
Adjustable Term Insurance Rider. You may increase the amount of your insurance coverage under the policy by adding coverage under the Adjustable Term Insurance Rider. This rider allows you to schedule the pattern of insurance coverage appropriate for your anticipated needs, with coverage generally not available until the beginning of the second policy year. As the name suggests, the Adjustable Term Insurance Rider adjusts over time to maintain your desired level of Target Death Benefit. Generally, the minimum amount of Target Death Benefit under a policy is $50,000.00.
On the date the Adjustable Term Insurance Rider is added to your policy (the “rider effective date”) the insured person generally can be no more than age 85 (70 for guaranteed issue policies). You specify your amount of Target Death Benefit when you apply for this rider. The amount of Target Death Benefit can be scheduled to change at the beginning of selected policy years. If you schedule increases in your Target Death Benefit, each increase must occur within five years of the rider effective date or the most recent previous increase. Scheduled increases generally must occur before age 85 (70 for guaranteed issue policies).
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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 rider’s 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 1, the Total Death Benefit is the greater of:
· The amount of your Target Death Benefit; or
· Your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A.
Under Death Benefit Option 2, the Total Death Benefit is the greater of:
· The amount of your Target Death Benefit plus your Account Value; or
· Your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A.
Under Death Benefit Option 3, the Total Death Benefit is the greater of:
· The amount of your Target Death Benefit plus the sum of the premium payments we have received minus partial withdrawals you have taken and partial withdrawal fees; or
· Your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A.
For example, under Death Benefit Option 1, assume your Base Death Benefit changes as a result of a change in your Account Value. The Adjustable Term Insurance Rider adjusts to provide Death Benefit Proceeds equal to your Total Death Benefit in each year:
Base Death Benefit |
Total Insurance Coverage |
Adjustable Term Insurance Benefit |
$201,500.00 |
$250,000.00 |
$48,500.00 |
$202,500.00 |
$250,000.00 |
$47,500.00 |
$202,250.00 |
$250,000.00 |
$47,750.00 |
It is possible that the amount of your adjustable term insurance benefit may be zero if your Base Death Benefit increases enough. Using the same example, if the Base Death Benefit under your policy grew to $250,000.00 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 the Base Death Benefit later drops below the amount of your Target Death Benefit, the Adjustable Term Insurance Rider coverage reappears to maintain the amount of your Target Death Benefit.
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Subject to the requirements outlined in the Changes in the Amount of Your Insurance Coverage section on page 37, once each policy year you may change the amount of your Adjustable Term Insurance Rider coverage (and thereby your Target Death Benefit) provided:
· No coverage under the Adjustable Term Insurance Rider is allowed during the first policy year;
· The minimum incremental increase in rider coverage generally must be at least 2.00% of your initial Target Death Benefit;
· The maximum incremental increase in rider coverage may not exceed the lesser of 25.00% of the amount of your initial Target Death Benefit or 200.00% of the most recent increase in rider coverage;
· All increases in rider coverage, in total, may not exceed the lesser of four times the amount of your initial Stated Death Benefit or $20,000,000.00; and
· On the effective date of any unscheduled increase in the amount of your Target Death Benefit, no more than 75.00% of your Target Death Benefit may be provided under the Adjustable Term Insurance Rider.
There may be underwriting or other requirements that must be met before we will approve coverage under the Adjustable Term Insurance Rider or any change to that coverage.
In certain circumstances we may choose to waive one or more of the issue requirements for and/or limitations on changes in Adjustable Term Insurance Rider Coverage, including those in which the policy is issued in relation to certain deferred compensation arrangements and other company approved advanced sales concepts. We will not unfairly discriminate in any such waiver.
Unless you request and we approve a new schedule of changes in the amount of your Target Death Benefit, any request to change the amount of your Target Death Benefit will automatically terminate all changes that were previously scheduled. After the change the amount of your Target Death Benefit will remain level and be equal to the amount in effect immediately following the change unless you request and we approve a new schedule of Target Death Benefits.
Partial withdrawals, changes from Death Benefit Option 1 to Death Benefit Option 2 and decreases in the amount of your Stated Death Benefit may reduce the amount of your Target Death Benefit. See Partial Withdrawals, page 68; and Changes in the Amount of Your Insurance Coverage, page 37.
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There is no defined premium for a given amount of adjustable term insurance benefit. Instead, we deduct separate monthly cost of insurance and administrative charges from your Account 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, underwriting type and risk class of the insured person, as well as the length of time since your rider effective date. As a general rule, the current cost of insurance rates for a rider based on simplified issue or guaranteed issue underwriting are higher than those for a rider which is fully underwritten. This means that a healthy individual could pay higher cost of insurance rates for this rider than they would pay for a substantially similar rider if they use simplified issue or guaranteed issue underwriting methods. See Underwriting, page 21.
Each month we deduct an administrative charge for this rider equal to our current monthly administrative charge rates multiplied by the difference between the amount of your Target Death Benefit and your Stated Death Benefit divided by 1,000. The rates vary based on the insured person’s gender, underwriting type and risk class and generally decrease after the fifth and tenth Segment years. The rates that apply to you will be set forth in your policy. See the Rider Fees and Charges tables beginning on page 10 for the minimum and maximum administrative charge rates and the rates for a representative insured person.
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 Stated Death Benefit coverage under the policy. There are no premium expense charges or surrender charges for this coverage. Consult with your agent/registered representative about the appropriate usage of the Adjustable Term Insurance Rider in your particular situation.
If you increase the Target Death Benefit after the rider effective date, 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 increase. Although the maximum cost of insurance rates for this rider are greater than the maximum cost of insurance rates for the Stated Death Benefit coverage under the policy, the current rates for this rider are generally lower than current cost of insurance rates for the Stated Death Benefit. See Cost of Insurance, page 30.
Not all policy features may apply to the Adjustable Term Insurance Rider. The rider does not contribute to the Account Value or to the Surrender Value. It does not affect investment performance and cannot be used for a loan. The Adjustable Term Insurance Rider provides benefits only at the insured person’s death.
This rider will terminate on the earliest of the following dates:
· The date the policy lapses (the expiration date of the policy grace period without our receipt of the required premium payment);
· The date the policy is terminated or surrendered;
· The next Monthly Processing Date after we receive your written notice to cancel the rider; or
· The policy anniversary nearest the insured’s 121st birthday.
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Important Information About the Adjustable Term Insurance Rider. It may be to your economic advantage to include 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:
· 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 Account Value. Accordingly, please be aware that 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; and
· 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 Policy, page 89.
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.
Guaranteed Minimum Accumulation Benefit Rider. The Guaranteed Minimum Accumulation Benefit Rider provides a guarantee that at the end of the guarantee period your Account Value will not be less than the minimum accumulation value, provided:
· Your Net Account Value is allocated to at least five investment options with no more than 35.00% invested in any one investment option; or
· At least 65.00% of your Net Account Value is allocated among the Voya Global Perspectives®, Voya Retirement Growth, Voya Retirement Moderate Growth or Voya Retirement Moderate Portfolios.
The guarantee period is 20 years from the Policy Date. The guaranteed minimum accumulation value is equal to the sum of all premium payments we have received minus all partial withdrawals you have taken and all fees and charges we have deducted from your Account Value (or that may have been waived under the provisions of your policy or another rider), accrued at an annual interest rate that may vary by policy year. That rate is currently 3.00% for all policy years.
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At the end of the guarantee period we will compare your Account Value with the minimum accumulation value. If the Account Value is greater, then there will be no adjustment to your Account Value and this rider will terminate. If the minimum accumulation value is greater, then we will increase your Account Value by allocating an amount equal to the difference between the Account Value and the minimum accumulation value among the various investment options in which your Account Value is allocated, on a pro rata basis taking into account any outstanding Loan Division Value.
Each month during the guarantee period we deduct a charge for this rider. The amount of this charge will be determined by multiplying the minimum accumulation value by the amount shown in your policy. The current and maximum guaranteed amount of this charge is 0.09583% on a monthly basis (1.15% on an annual basis). See the Rider Fees and Charges tables beginning on page 10.
You should consider the following when deciding whether to add the Guaranteed Minimum Accumulation Benefit Rider to your policy:
· You may add this rider only when you apply for the base policy;
· There is currently only one guarantee period available: 20 years;
· The guarantee period is measured from the Policy Date;
· Transfers between investment options that are made in response to our notice to you that your policy is not sufficiently diversified will not count as transfers for purposes of any limits or restrictions on transfers that we may impose (see Transfers, page 61);
· This rider may not be available for certain risk classes;
· You may terminate this rider at any time during the guarantee period upon written notice to us; and
· If this rider terminates, it cannot be reinstated.
We will notify you if on any Monthly Processing Date your policy is not sufficiently diversified. If you do not sufficiently diversify your policy within 61 days from the Monthly Processing Date on which your policy was not sufficiently diversified, this rider will terminate.
Lifetime Guaranteed Death Benefit Rider. The Lifetime Guaranteed Death Benefit Rider provides a guarantee that your policy and any Adjustable Term Insurance Rider will not lapse during your lifetime provided:
· Your cumulative premium payments minus any partial withdrawals and any outstanding Loan Amount are at least equal to the sum of the guarantee period monthly premium to the next Monthly Processing Date; and
· Your Net Account Value meets one of the following diversification requirements:
> Your Net Account Value is allocated to at least five investment options with no more than 35.00% invested in any one investment option; or
> At least 65.00% of your Net Account Value is allocated among the Voya Global Perspectives®, Voya Retirement Growth, Voya Retirement Moderate Growth or Voya Retirement Moderate Portfolios.
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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. 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 Target Death Benefit minus your Account Value. See the Rider Fees and Charges tables beginning on page 10 for the minimum and maximum Lifetime Guaranteed Death Benefit Rider charge rates and the rates for a representative insured person.
You should consider the following when deciding whether to add the Lifetime Guaranteed Death Benefit Rider to your policy:
· This rider is available for issue ages 25-75;
· You may add this rider only when you apply for the base policy and the lifetime death benefit guarantee period begins on the Policy Date;
· The guarantee period annual premium required to keep this rider in effect will be set forth in your policy and will be based on monthly rates that vary according to the insured person’s gender, risk class, age, underwriting type and death benefit option selected;
· If your policy benefits change, the guarantee period annual premium for this rider will also change;
· Transfers between investment options that are made in response to our notice to you that your policy is not sufficiently diversified will not count as transfers for purposes of any limits or restrictions on transfers that we may impose (see Transfers, page 61);
· This rider covers only your base policy and Adjustable Term Insurance Rider, if any. If your policy and any Adjustable Term Insurance Rider are kept in force because of this rider, coverage under all other riders may terminate;
· This rider may not be available for certain risk classes or underwriting types;
· This rider cannot be added to a policy with Death Benefit Option 3 or the 20-year Guaranteed Death Benefit Rider;
· You may terminate this rider at any time during the guarantee period upon written notice to us;
· A loan may cause the termination of this guarantee because we deduct your outstanding Loan Amount from cumulative premiums paid when calculating whether you have paid sufficient premiums to keep the guarantee in effect; and
· Even if this rider terminates, your policy will not necessarily lapse (see Lapse, page 70).
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. 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 after a waiting period 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. The cost of this rider is based on rates that vary based on several factors that may include the insured person’s attained age. Rates for this rider generally increase each year after the first rider year until age 59 and generally decrease thereafter. See the Rider Fees and Charges tables beginning 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. 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 $25.00 per month. The cost of this rider is based on rates that vary based on several factors that may include the insured person’s attained age. Rates for this rider generally increase each year after the first rider year until age 59 and generally decrease thereafter. See the Rider Fees and Charges tables beginning 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 Specified Premium Rider or the Waiver of Cost of Insurance Rider, but not both.
The following rider benefits may come with your policy automatically.
Accelerated Benefit Rider. Under certain circumstances, the Accelerated Benefit Rider allows you to accelerate payment of a portion of the eligible death benefit that we otherwise would pay upon the insured person’s death.
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Generally, we will provide an accelerated benefit under this rider if the insured person has one or more of the following:
· A non-correctable illness or physical condition that, with a reasonable degree of medical certainty, will result in the death of the insured person in less than 12 months from the date of receipt of certification by a physician;
· A medical condition that has required or requires extraordinary medical intervention without which the insured person would die. Such conditions may include, but are not limited to:
> A major organ transplant; and
> Continuous artificial life support.
· A medical condition that usually requires continuous confinement in an eligible institution and in which the insured person is expected to remain for the rest of his or her life; or
· A medical condition that would, in the absence of extensive or extraordinary medical treatment, result in a drastically limited life span. Such conditions may include, but are not limited to:
> Coronary artery disease resulting in an acute infarction or requiring surgery;
> Permanent neurological deficit resulting from cerebral vascular accident; or
> End stage renal failure.
Before we will pay an accelerated benefit under this rider we will require certification by a licensed physician that the insured person meets one or more of these conditions.
The maximum accelerated benefit available under this rider is the lesser of 50.00% of the eligible death benefit that would be payable at the death of the insured person or $1,000,000.00. The minimum available accelerated benefit is $10,000.00.
Consider the following when deciding whether to accelerate the death benefit under this rider:
· Only one accelerated benefit may be paid per policy to which this rider is attached;
· We assess an administrative charge of up to $300.00 when we pay the accelerated benefit (see the Rider Fees and Charges tables beginning on page 10);
· The accelerated benefit will first be used to repay any outstanding Loan Amount. The remainder of the accelerated benefit (less the administrative charge) will be paid to you;
· Accelerating the death benefit will not affect the amount of premium payable on the policy nor the cost of insurance or other charges due under the policy;
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· The accelerated benefit requested plus any amounts we pay to keep the policy in force plus interest as described below will be a lien against the policy and any additional term insurance rider benefits that are part of the eligible death benefit. When there is a lien against your policy:
> The amount payable at the death of the insured under your policy and any additional term insurance rider benefits that are part of the eligible death benefit will be reduced by the amount of the lien;
> Your access to the value of your policy, if any, through surrender, withdrawal or loan will be limited to the excess of the value of your policy over the amount of the lien;
> You may not make any changes to your policy that would reduce the proceeds payable at death without written permission from us. We reserve the right to require you to repay all or part of the lien before you make any changes to your policy;
> Any premiums or other payments required under the terms of the policy will continue to be due and payable and will be based upon the pre-accelerated benefit amount;
> Any payments required to keep the policy in force (not including scheduled premiums, minimum monthly premiums or any other amount the payment of which will insure that the policy will not lapse notwithstanding the fact that the policy’s Net Account Value is zero or less) that are not paid by you will be paid by us, and the amount of any such payments will be added to the amount of the lien; and
> Interest on the amount of the lien accrues daily and is added to the amount of the lien. The maximum interest rate used will not be more than the greater of the current yield on 90 day treasury bills or the current maximum statutory adjustable policy loan interest rate (see the Rider Fees and Charges tables beginning on page 10).
· There may be tax consequences to requesting payment under this rider, and you should consult with a tax and/or legal adviser for further information. See Accelerated Benefit Rider, page 76.
Certain conditions, limitations, and restrictions on your receipt of an accelerated benefit payment under this rider 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 Account Value, as applicable, is not enough to pay the periodic fees and charges when due. This rider may help you keep your policy in force and avoid tax consequences resulting from your policy lapsing with a loan outstanding. See Distributions Other than Death Benefits, page 74.
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You may exercise this rider by written request if all of the following conditions are met:
· You elected to have your policy meet the requirements of the guideline premium test (see Death Benefit Qualification Tests, page 39);
· At least 15 years have elapsed since your Policy Date;
· You are at least age 75;
· Your outstanding Loan Amount is equal to or greater than the amount of your Stated Death Benefit (or Target Death Benefit, if greater);
· Your outstanding Loan Amount excluding any unearned loan interest does not exceed your Account Value less the transaction charge for this rider (see Loan Division Value, page 59; see also Loan Interest, page 60);
· Exercise of this rider does not cause your policy to become a modified endowment contract under Section 7702A of the Internal Revenue Code (see Modified Endowment Contracts, page 74); and
· Exercise of this rider does not cause your policy to violate the statutory premium limits allowed under the guideline premium test (see Guideline Premium Test, page 40).
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 Account Value (see the Rider Fees and Charges tables beginning on page 10);
> If Death Benefit Option 2 or 3 is in effect, the death benefit option will automatically be changed to Death Benefit Option 1 (see Death Benefit Options, page 41);
> The amount of insurance coverage after exercise of this rider will equal your Account Value (less the transaction charge) multiplied by the appropriate guideline premium test factor described in Appendix A;
> Amounts allocated to the Subaccounts of the Separate Account will be transferred to the Guaranteed Interest Division; and
> All other benefit riders will be terminated.
· 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 Division Value;
> You may not make any future transfers from the Guaranteed Interest Division to the Subaccounts of the Separate 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.
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This rider may not be available in all states. You should consult your agent/registered representative as to whether and to what extent the rider is available in your particular state.
Your Account Value equals the sum of your Separate Account, Guaranteed Interest Division and Loan Division values. Your Account Value reflects:
· The Net Premium applied to your policy;
· Any rider benefits applied to your policy;
· The fees and charges that we deduct;
· Any partial withdrawals you take;
· Interest earned on amounts allocated to the Guaranteed Interest Division;
· The investment performance of the mutual funds underlying the Subaccounts of the Separate Account; and
· Interest earned on amounts held in the Loan Division.
Your Net Account Value equals the Account Value minus any Loan Amount.
Separate Account Value
Your Separate Account Value equals your Account Value attributable to amounts invested in the Subaccounts of the Separate Account.
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.
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 mutual fund. It reflects:
· Investment income;
· Realized and unrealized gains and losses;
· Fund expenses (including fund redemption fees, if applicable); and
· Taxes, if any.
A Valuation Date is a date on which a mutual fund values its shares and the New York Stock Exchange (“NYSE”) 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 Division) and when rider benefits are allocated to a Subaccount.
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We redeem Accumulation Units:
· When amounts are transferred from a Subaccount (including transfers to the Loan Division);
· For the monthly deduction of the periodic fees and charges from your Account Value;
· For policy transaction fees (including fund redemption fees, if any);
· When you take a partial withdrawal;
· If you surrender your policy; and
· To pay the Death Benefit Proceeds.
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 Customer Service receives your premium or transaction request in good order, 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 Account 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 mutual funds. There is no guaranteed minimum value of amounts invested in the Subaccounts of the Separate Account.
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 $10.00 when the Subaccount is first opened. After that, the Accumulation Unit Value on any Valuation Date is:
· The Accumulation Unit Value for the preceding Valuation Date; multiplied by
· The Subaccount’s accumulation experience factor for the valuation period.
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.
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We calculate an accumulation experience factor for each Subaccount every Valuation Date as follows:
· We take the net asset value of the underlying fund shares as reported to us by the fund managers as of the close of business on that Valuation Date;
· We add dividends or capital gain distributions declared and reinvested by the fund during the current valuation period;
· We subtract a charge for taxes, if applicable; and
· We divide the resulting amount by the net asset value of the shares of the underlying fund at the close of business on the previous Valuation Date.
Your Guaranteed Interest Division value equals the Net Premium you allocate to the Guaranteed Interest Division, plus any rider benefits allocated to the Guaranteed Interest Division, plus interest earned, minus amounts you transfer out or withdraw. It may be reduced by fees and charges assessed against your Account Value. See The Guaranteed Interest Division, page 20.
When you take a loan from your policy we transfer an amount equal to your loan to the Loan Division as collateral for your loan. The Loan Division is part of our general account and we credit interest to the amount held in the Loan Division. Your Loan Division Value on any Valuation Date is equal to:
· The Loan Division Value on the prior Valuation Date; plus
· Any loan interest credited to the Loan Division during the valuation period; plus
· The amount of any new loan taken during the valuation period; minus
· Any loan repayments, including the repayment of loan interest; plus
· The amount of accrued and unpaid loan interest if the Valuation Date is a policy anniversary; minus
· The amount of loan interest credited to the Loan Division during the prior policy year if the Valuation Date is a policy anniversary. See Loans, page 59.
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 $100.00 and the maximum amount you may borrow is generally limited to the Net Surrender Value of your policy less the estimated monthly periodic fees and charges to your next policy anniversary or the estimated monthly periodic fees and charges for the next thirteen months if you take a loan within thirty days before your next policy anniversary.
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Your loan request must be directed to Customer Service. 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 investment option in which your Net Account Value is allocated, including the Guaranteed Interest Division.
If you request an additional loan, we add the new loan 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 Division with interest at an annual rate of 3.00%. Interest that we credit to the Loan Division becomes part of your Loan Division 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 (the maximum amount that may be charged) and currently 3.00% in all years thereafter (guaranteed not to exceed 3.15%). 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 outstanding 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 Division to the Subaccounts and Guaranteed Interest Division in the same proportion as your current premium allocation, unless you tell us otherwise.
Loan Amount. The Loan Amount on any date is equal to:
· Any outstanding loan plus accrued loan interest as of the beginning of the policy year; plus
· New loans; plus
· Accrued but unpaid loan interest; minus
· Loan repayments.
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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:
· Failure to make loan repayments could cause your policy to lapse;
· A loan may cause the termination of the Guaranteed Death Benefit Riders because we deduct your outstanding Loan Amount from cumulative premiums paid when calculating whether you have paid sufficient premiums to keep the riders in effect;
· Taking a loan reduces your opportunity to participate in the investment performance of the Subaccounts and the interest guarantees of the Guaranteed Interest Division;
· Accruing loan interest will change your Account Value as compared to what it would have been if you did not take a loan;
· Even if you repay your loan, it will have a permanent effect on your Account Value;
· If you use the continuation of coverage feature and you have a loan, loan interest continues to accrue and could cause your policy to lapse;
· If you do not repay your loan we will deduct any outstanding Loan Amount from amounts payable under the policy; and
· Loans may have tax consequences and if your policy lapses with a loan outstanding, you may have further tax consequences. See Distributions Other than Death Benefits, page 74.
You currently may make an unlimited number of transfers of your Separate Account Value between the Subaccounts and to the Guaranteed Interest Division. Transfers are subject to any conditions, limits or charges (including fund redemption fees) that we or the funds whose shares are involved may impose, including:
· If your state requires a refund of premium during the right to examine period, you may not make transfers until after your right to examine period ends;
· The minimum amount you may transfer is $100.00;
· If the amount remaining in the investment option after a transfer will be less than $100.00, we will transfer the entire amount; and
· We may limit the number of transfers or restrict or refuse transfers because of frequent or disruptive transfers, as described below.
Any conditions or limits we impose on transfers between the Subaccounts or to the Guaranteed Interest Division 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 or Disruptive Transfers, page 64.
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One transfer from the Guaranteed Interest Division to the Subaccounts of the Separate Account may be made each policy year, but only within 30 days after the policy anniversary. This transfer is limited to the greater of:
· 25.00% of your Guaranteed Interest Division value at the time of the first such transfer;
· The sum of the amounts transferred and partially withdrawn from the Guaranteed Interest Division during the prior policy year; or
· $100.00.
We reserve the right to liberalize these restrictions on transfers from the Guaranteed Interest Division, 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 in good order, except as described below for the dollar cost averaging or automatic rebalancing programs.
Dollar Cost Averaging. Anytime you have at least $10,000.00 invested in a Subaccount that invests in the Voya Limited Maturity Bond Portfolio or the Voya Government 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 Guaranteed Interest Division or the Loan Division under this program. You may request that the dollar cost averaging transfers occur on a monthly, quarterly, semi-annual or annual basis.
This systematic plan of transferring Account Values is intended to help reduce the risk of investing too much when the price of a fund’s shares is high. It also helps reduce the risk of investing too little when the price of a fund’s 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 right to examine period, dollar cost averaging begins after the end of your right to examine 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.
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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:
· The date you specify;
· The date your balance in the source Subaccount reaches a dollar amount you set;
· The date your balance in the source Subaccount is equal to or less than the amount to be transferred. In this situation we will transfer the entire balance of the source Subaccount to the other Subaccounts you have selected; or
· Any date when dollar cost averaging transfers are scheduled and the policy is in the grace period.
Automatic Rebalancing. Automatic rebalancing is a program for simplifying the process of asset allocation and maintaining a consistent allocation of your Separate Account and Guaranteed Interest Division 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 right to examine period if your state requires return of premium during the right to examine period). If you do not request a date, processing is on the last Valuation Date of the calendar quarter in which Customer Service receives your request in good order.
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 Division.
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 in good order at Customer Service. If you reduce the amount allocated to the Guaranteed Interest Division, 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 Guaranteed Interest Division.
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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 Guaranteed Death Benefit Riders, page 44.
Although 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 mutual fund and raise its expenses through:
· Increased trading and transaction costs;
· Forced and unplanned portfolio turnover;
· Lost opportunity costs; and
· Large asset swings that decrease the fund’s ability to provide maximum investment return to all policy owners.
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 be aware that:
· We suspend the Electronic Trading Privileges, as defined below, of any individual or organization if we determine, in our sole discretion, that the individual’s or organization’s transfer activity is disruptive or not in the best interest of other owners of our variable insurance and retirement products; and
· Each underlying fund may limit or restrict fund purchases and we will implement any limitation or restriction on transfers to an underlying fund as directed by that underlying fund.
Consequently, individuals or organizations that use market-timing investment strategies or make frequent transfers should not purchase or participate in the policy.
Excessive Trading Policy. We and the other members of the Voya® family of companies that provide multi-fund variable insurance and retirement products have adopted a common Excessive Trading Policy to respond to the demands of the various fund families that make their funds available through our products to restrict excessive fund trading activity and to ensure compliance with Rule 22c-2 of the 1940 Act.
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We actively monitor fund transfer and reallocation activity within our variable insurance products to identify violations of our Excessive Trading Policy. Our Excessive Trading Policy is violated if fund transfer and reallocation activity:
· Meets or exceeds our current definition of Excessive Trading, as defined below; or
· Is determined, in our sole discretion, to be disruptive or not in the best interests of other owners of our variable insurance and retirement products.
We currently define Excessive Trading as:
· More than one purchase and sale of the same fund (including money market funds) within a 60 calendar day period (hereinafter, a purchase and sale of the same fund is referred to as a “round-trip”). This means two or more round-trips involving the same fund within a 60 calendar day period would meet our definition of Excessive Trading; or
· Six round-trips involving the same fund within a rolling 12 month period.
The following transactions are excluded when determining whether trading activity is excessive:
· Purchases or sales of shares related to non-fund transfers (for example, new purchase payments, partial withdrawals and loans);
· Transfers associated with scheduled dollar cost averaging, scheduled rebalancing or scheduled asset allocation programs;
· Purchases and sales of fund shares in the amount of $5,000.00 or less;
· Purchases and sales of funds that affirmatively permit short-term trading in their fund shares, and movement between such funds and a money market fund; and
· Transactions initiated by us, another member of the Voya family of companies or a fund.
If we determine that an individual or entity has made a purchase of a fund within 60 days of a prior round-trip involving the same fund, we will send them a letter warning that another sale of that same fund within 60 days of the beginning of the prior round-trip will be deemed to be Excessive Trading and result in a six month suspension of their ability to initiate fund transfers or reallocations through the Internet, facsimile, Voice Response Unit (“VRU”), telephone calls to Customer Service or other electronic trading medium that we may make available from time to time (“Electronic Trading Privileges”). Likewise, if we determine that an individual or entity has made five round-trips involving the same fund within a rolling 12 month period, we will send them a letter warning that another purchase and sale of that same fund within 12 months of the initial purchase in the first round-trip will be deemed to be Excessive Trading and result in a suspension of their Electronic Trading Privileges. According to the needs of the various business units, a copy of any warning letters may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or the investment adviser for that individual or entity. A copy of the warning letters and details of the individual’s or entity’s trading activity may also be sent to the fund whose shares were involved in the trading activity.
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If we determine that an individual or entity has violated our Excessive Trading Policy, we will send them a letter stating that their Electronic Trading Privileges have been suspended for a period of six months. Consequently, all fund transfers or reallocations, not just those that involve the fund whose shares were involved in the activity that violated our Excessive Trading Policy, will then have to be initiated by providing written instructions to us via regular U.S. mail. Suspension of Electronic Trading Privileges may also extend to products other than the product through which the Excessive Trading activity occurred. During the six month suspension period, electronic “inquiry only” privileges will be permitted where and when possible. A copy of the letter restricting future transfer and reallocation activity to regular U.S. mail and details of the individual’s or entity’s trading activity may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or investment adviser for that individual or entity and the fund whose shares were involved in the activity that violated our Excessive Trading Policy.
Following the six month suspension period during which no additional violations of our Excessive Trading Policy are identified, Electronic Trading Privileges may again be restored. We will continue to monitor the fund transfer and reallocation activity, and any future violations of our Excessive Trading Policy will result in an indefinite suspension of Electronic Trading Privileges. A violation of our Excessive Trading Policy during the six month suspension period will also result in an indefinite suspension of Electronic Trading Privileges.
We reserve the right to suspend Electronic Trading Privileges with respect to any individual or entity, with or without prior notice, if we determine, in our sole discretion, that the individual’s or entity’s trading activity is disruptive or not in the best interests of other owners of our variable insurance and retirement products, regardless of whether the individual’s or entity’s trading activity falls within the definition of Excessive Trading set forth above.
Our failure to send or an individual’s or entity’s failure to receive any warning letter or other notice contemplated under our Excessive Trading Policy will not prevent us from suspending that individual’s or entity’s Electronic Trading Privileges or taking any other action provided for in our Excessive Trading Policy.
We do 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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Limits Imposed by the Funds. Each underlying fund available through the variable insurance and retirement products offered by us and/or the other members of the Voya family of companies, either by prospectus or stated policy, has adopted or may adopt its own excessive/frequent trading policy, and orders for the purchase of fund shares are subject to acceptance or rejection by the underlying fund. We reserve the right, without prior notice, to implement fund purchase restrictions and/or limitations on an individual or entity that the fund has identified as violating its excessive/frequent trading policy and to reject any allocation or transfer request to a Subaccount if the corresponding fund will not accept the allocation or transfer for any reason. All such restrictions and/or limitations (which may include, but are not limited to, suspension of Electronic Trading Privileges and/or blocking of future purchases of a fund or all funds within a fund family) will be done in accordance with the directions we receive from the fund.
Agreements to Share Information with Fund Companies. As required by Rule 22c-2 under the 1940 Act, we have entered into information sharing agreements with each of the fund companies whose funds are offered through the policy. Policy owner trading information is shared under these agreements as necessary for the fund companies to monitor fund trading and our implementation of our Excessive Trading Policy. Under these agreements, the company is required to share information regarding policy owner transactions, including, but not limited to, information regarding fund transfers initiated by you. In addition to information about policy owner transactions, this information may include personal policy owner information, including names and social security numbers or other tax identification numbers.
As a result of this information sharing, a fund company may direct us to restrict a policy owner’s transactions if the fund determines that the policy owner has violated the fund’s excessive/frequent trading policy. This could include the fund directing us to reject any allocations of premium or Account Value to the fund or all funds within the fund family.
Conversion to a Fixed Policy
During the first two policy years you may permanently convert your policy to a fixed policy, unless state law requires differently. If you elect to make this change, unless state law requires that we issue to you a new fixed benefit policy, we will permanently transfer the amounts you have invested in the Subaccounts of the Separate Account to the Guaranteed Interest Division and allocate all future Net Premium to the Guaranteed Interest Division. After you exercise this right you may not allocate future premium payments or make transfers to the Subaccounts of the Separate Account. We do not charge for this change. Contact Customer Service or your agent/registered representative for information about the conversion rights available in your state.
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Partial Withdrawals
Beginning in the second policy year (or the first policy year for “in corridor” policies) you may withdraw part of your policy’s Surrender Value. Twelve partial withdrawals are currently allowed each policy year, and a partial withdrawal must be at least $100.00. The maximum partial withdrawal you may take is the amount which leaves $500.00 as your Net 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 partial withdrawal request is for more than the maximum, we will require you to surrender your policy or reduce the amount of the partial withdrawal.
A policy is “in corridor” if:
· Under Death Benefit Option 1, your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A is greater than the amount of your Stated Death Benefit;
· Under Death Benefit Option 2, your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A is greater than your Stated Death Benefit plus your Account Value; or
· Under Death Benefit Option 3, your Account Value multiplied by the appropriate factor from the definition of life insurance factors described in Appendix A is greater than your Stated Death Benefit plus the sum of your premium payments minus partial withdrawals.
We charge a partial withdrawal fee of $10.00 for each partial withdrawal. See Partial Withdrawal Fee, page 28.
Unless you specify a different allocation, we will take partial withdrawals from the Guaranteed Interest Division and the Subaccounts of the Separate Account in the same proportion that your value in each has to your Net Account Value immediately before the partial 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 Guaranteed Interest Division may not exceed the amount of the total partial withdrawal multiplied by the ratio of your Guaranteed Interest Division Value to your Net Account Value immediately before the partial withdrawal.
Effects of a Partial Withdrawal. We will reduce your Account Value by the amount of the partial withdrawal plus the partial withdrawal fee. Your Account Value may also be reduced by the amount of a surrender charge if you take a partial withdrawal which decreases your Stated Death Benefit.
A partial withdrawal may also cause the termination of any optional Guaranteed Death Benefit Rider in effect 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 guarantee.
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The amount of your Stated Death Benefit 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 Account 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 Stated Death Benefit.
Under Death Benefit Option 1, a partial withdrawal will reduce the amount of your Stated Death Benefit by the amount of the partial withdrawal.
Under Death Benefit Option 2, a partial withdrawal will not reduce the amount of your Stated Death Benefit.
Under Death Benefit Option 3, a partial withdrawal will reduce the amount of your Stated Death Benefit 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.
If a partial withdrawal reduces the amount of Stated Death Benefit, the Target Death Benefit 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 Target Death Benefit after the partial withdrawal would be less than $50,000.00.
A reduction in the amount of Stated Death Benefit 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 72.
Your insurance coverage will continue under the policy until you surrender your policy or it lapses.
You may surrender your policy for its Net Surrender Value at any time after the right to examine period while the insured person is alive. Your Net Surrender Value is equal to your Surrender Value minus any outstanding Loan Amount. Your Surrender Value is equal to your Account Value minus any applicable surrender charge.
You may take your Net Surrender Value in other than one payment.
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We compute your Net Surrender Value as of the Valuation Date Customer Service receives your policy and written surrender request in good order. All insurance coverage ends on the date we receive your surrender request and policy.
If you surrender your policy we may deduct a surrender charge. See Surrender Charge, page 29. Surrender of your policy may have adverse tax consequences. See Distributions Other than Death Benefits, page 74.
Your policy will not lapse and your insurance coverage under the policy will continue if on any Monthly Processing Date:
· An optional Guaranteed Death Benefit Rider is in effect;
· Your Net Account Value is enough to pay the periodic fees and charges when due; or
· During the continuation of coverage period, your Account Value exceeds your outstanding Loan Amount.
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 and then we deduct the overdue amounts from your Account Value.
If you do not pay the full amount within the 61-day grace period, your policy and its riders will lapse without value. We withdraw your remaining Separate Account and Guaranteed Interest Division 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 and periodic fees and charges owed.
During the early policy years your Net Account 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 24.
If your policy lapses, any distribution of Account Value may be subject to current taxation. See Distributions Other than Death Benefits, page 74.
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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 Guaranteed Death Benefit Rider or the Guaranteed Minimum Accumulation Benefit Rider) by written request any time within five years after it has lapsed and before the insured person reaches age 121. A policy that was surrendered may not be reinstated.
To reinstate the policy and available 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 as if your coverage had not lapsed. If you had a loan existing when coverage lapsed, unless directed otherwise, we will reinstate it with accrued but unpaid loan interest to the date of lapse.
When a policy is reinstated, unless otherwise directed by you, we will allocate the Net Premium received to the Subaccounts of the Separate Account and the Guaranteed Interest Division according to the premium allocation instructions in effect at the start of the grace period. Your Account Value on the reinstatement date will equal:
· The Account Value at the end of the grace period; plus
· The Net Premium paid on reinstatement; minus
· Any unpaid fees and charges through the end of the grace period.
A policy that lapses and is reinstated more than 90 days after lapsing may be classified as a modified endowment contract for tax purposes. You should consult with a tax and/or legal adviser to determine whether reinstating a lapsed policy will cause it to be classified as a modified endowment contract. See Modified Endowment Contracts, page 74.
The following summary provides a general description of the U.S. 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 or state, local and foreign taxes or other tax situations. We have written this discussion to support the promotion and marketing of our products, and we do not intend it as tax advice. This summary is not intended to and cannot be used to avoid any tax penalties that may be imposed upon you. 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 IRS. We cannot make any guarantee regarding the tax treatment of any policy or policy transaction.
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The following discussion generally assumes that the policy will qualify as a life insurance contract for federal tax purposes.
We are taxed as a life insurance company under the Internal Revenue Code. The Separate 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 or deductions attributable to the Separate Account will first be used to reduce any income taxes imposed on the Separate Account before being used by the company.
In summary, we do not expect that we will incur any federal income tax liability attributable to the Separate 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 Separate Account, then we may impose a charge against the Separate Account (with respect to some or all of the policies) to set aside provisions to pay such taxes.
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 39. 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 73. If we return premium in order to bring your policy into compliance with the requirements of Section 7702, it will be refunded on a last-in, first-out basis and may be taken from the investment options in which your Account Value is allocated based on your premium allocation in effect.
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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 Separate Account, to be adequately diversified. The Treasury has issued regulations that set the standards for measuring the adequacy of any diversification, and the IRS has published various revenue rulings and private letter rulings addressing diversification issues. To be adequately diversified, each Subaccount and its corresponding mutual 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 Subaccount’s corresponding mutual fund has represented that it will meet the diversification standards that apply to your policy. Accordingly, 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 Subaccount’s corresponding mutual 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.
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 account values. These differences could result in the IRS treating you as the owner of a pro rata share of the Separate Account assets. We do not know what standards will be set forth in the future, if any, in Treasury regulations or rulings. 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 Separate Account assets or to otherwise qualify your policy for favorable tax treatment.
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, ownership and beneficiary designations, including change of either, may have consequences under federal, state and local income, estate, inheritance, gift, generation-skipping and other tax laws. The individual situation of each policy owner or beneficiary will determine the extent, if any, of those taxes and you should consult a tax and/or legal adviser.
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Generally, the policy owner will not be taxed on any of the Account 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.”
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 or policy reinstatement, 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 tax and/or legal adviser to determine whether or not a policy transaction will cause the policy to be classified as a modified endowment contract.
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 as described below. 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 owner’s income when a taxable distribution occurs.
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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:
· All distributions other than death benefits, including distributions upon surrender and partial withdrawals, from a modified endowment contract will be treated first as distributions of gain, if any, and are taxable as ordinary income. Amounts will be treated as tax-free recovery of the policy owner’s investment in the policy only after all gain has been distributed. The amount of gain in the policy will be equal to the difference between the policy’s value, determined without regard to any surrender charges, and the investment in the policy;
· Loan amounts taken from or secured by a policy classified as a modified endowment contract, and also assignments or pledges of such a policy (or agreements to assign or pledge such a policy), are treated first as distributions of gain, if any, and are taxable as ordinary income. Amounts will be treated as tax-free recovery of the policy owner’s investment in the policy only after all gain has been distributed; and
· A 10.00% additional income tax penalty may be imposed on the distribution amount subject to income tax. This tax penalty generally does not apply to a policy owned by an individual where the distributions are:
> Made on or after the date on which the taxpayer attains age 59½;
> Attributable to the taxpayer becoming disabled (as defined in the Internal Revenue Code); or
> Part of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or life expectancy) of the taxpayer or the joint lives (or joint life expectancies) of the taxpayer and his or her beneficiary. Consult a tax and/or legal adviser to determine whether or not you may be subject to this penalty tax.
If we discover that your policy has inadvertently become a modified endowment contract, unless you have indicated otherwise, we will assume that you do not want it to be classified as a modified endowment contract and attempt to fix this by refunding any excess premium with related interest. The excess gross premium will be refunded on a last-in, first-out basis and may be taken from the investment options in which your Account Value is allocated based on your premium allocation in effect.
Policies That Are Not Modified Endowment Contracts
Distributions other than death benefits from a policy that is not classified as a modified endowment contract are generally treated first as a recovery of the policy owner’s investment in the policy. 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 tax and/or legal adviser to determine whether or not any distributions made in connection with a reduction in policy benefits will be subject to tax.
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Loan amounts from or secured by a policy that is not a modified endowment contract are generally not taxed as distributions. Finally, neither distributions from, nor loan amounts from or secured by, a policy that is not a modified endowment contract are subject to the 10.00% additional income tax penalty.
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.
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 tax and/or legal adviser before taking out a loan to determine whether you qualify under this exception.
Moreover, the tax consequences associated with a preferred loan (preferred loans are 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 tax and/or legal 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. If your policy has large outstanding policy loans, you may have to choose between paying high premiums to keep the policy from lapsing and paying significant income tax if you allow the policy to lapse.
The benefit payments under the Accelerated Benefit Rider are intended to be fully excludable from the gross income of the recipient if the recipient is the insured under the policy or is an individual who has no business or financial connection with the insured. (See Accelerated Benefit Rider, page 53, for more information about this rider.) However, you should consult a tax and/or legal adviser about the consequences of requesting payment under this rider.
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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 Section 1035 exchanges with outstanding loans. Special rules and procedures apply to Section 1035 exchanges. These rules can be complex, and if you wish to take advantage of Section 1035, you should consult a tax and/or legal 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 tax and/or legal 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 tax and/or legal 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 return or refuse to accept all or part of your premium payments or to change your death benefit. We may reject any policy request, including a partial withdrawal request, if it would cause your policy to fail to qualify as life insurance or would cause us to return premium to you. 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. Any increase in your death benefit will cause an increase in your cost of insurance charges.
Policy Use in Various Plans and Arrangements
Policy owners may use the policy in various arrangements, including:
· Certain qualified plans;
· Non-qualified deferred compensation or salary continuance plans;
· Split dollar insurance arrangements;
· Executive bonus plans;
· Retiree medical benefit plans; and
· Other plans or arrangements.
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The tax consequences of these arrangements 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 tax and/or legal adviser regarding the tax issues of your particular arrangement.
Life Insurance Owned by Businesses
Congress has enacted rules relating to life insurance owned by businesses. For example, in the case of a policy issued to a non-natural taxpayer, or held for the benefit of such an entity, a portion of the taxpayer’s 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 20.00% 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 policy may be taxable. As another example, special rules apply if a business is 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 tax and/or legal adviser.
Income Tax Withholding
The IRS requires us to withhold income taxes from any portion of the amounts individuals receive in a taxable transaction. However, if you reside in the U.S., 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.
Life Insurance Purchases by Non-Resident Aliens
If you or your beneficiary is a non-resident alien, U.S. federal withholding on taxable distributions or death benefits will generally be at a 30.00% rate, unless a lower treaty rate applies. In addition, you may be subject to state and/or municipal taxes and taxes imposed by your country of citizenship or residence. You should consult a tax and/or legal adviser before purchasing a policy.
Ownership and Beneficiary Designations
Ownership and beneficiary designations, including change of either, may have consequences under federal, state and local income, estate, inheritance, gift, generation-skipping and other tax laws. The individual situation of each policy owner or beneficiary will determine the extent, if any, of these taxes and you should consult a tax and/or legal adviser.
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Same-Sex Marriages
The policy provides that upon your death a surviving spouse may have certain continuation rights that he or she may elect to exercise for the policy’s death benefit and any joint-life coverage under a living benefit. All policy provisions relating to spousal continuation are available only to a person who meets the definition of “spouse” under federal law. The U.S. Supreme Court has held that same-sex marriages must be permitted under state law and that marriages recognized under state law will be recognized for federal law purposes. Domestic partnerships and civil unions that are not recognized as legal marriages under state law, however, will not be treated as marriages under federal law. Please consult your tax and/or legal adviser for further information about this subject.
Fair Value of Your Policy
It is sometimes necessary for tax and other reasons to determine the “value” of your policy. The value can be measured differently for different purposes. It is not necessarily the same as the Account Value or the Net Account Value. You should consult a tax and/or legal adviser for guidance as to the appropriate methodology for determining the fair market value of your policy.
You should consult legal or tax advisers for complete information on federal, state, local and other tax considerations.
Order Processing
In certain circumstances, we may need to correct the pricing associated with an order that has been processed. In such circumstances, we may incur a loss or receive a gain depending upon the price of the fund when the order was executed and the price of the fund when the order is corrected. Losses may be covered from our assets and gains that may result from such order correction will be retained by us as additional compensation associated with order processing.
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Your Policy
The policy is a contract between you and us and is the combination of:
· Your policy;
· A copy of your original application and applications for benefit increases or decreases;
· Your riders;
· Your endorsements;
· Your policy schedule pages; and
· Your reinstatement applications.
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.
Age
We issue your policy at the insured person’s 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 person’s 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.
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 by Customer Service. A change in ownership may cause the prior owner to recognize taxable income on gain under the policy.
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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 person’s 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 76.
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 76.
Incontestability
After your policy has been in force during the lifetime of the insured person for two years from your Policy Date, we will not contest its validity except for nonpayment of premium. Likewise, after your policy has been in force during the lifetime of the insured person for two years from the effective date of any new coverage segment or benefit or from the date of reinstatement, we will not contest its validity except for nonpayment of premium.
Misstatements of Age or Gender
Notwithstanding the Incontestability provision above, if the insured person’s age or gender has been misstated, we adjust the death benefit to the amount that would have been purchased for the insured person’s correct age and gender. We base the adjusted death benefit on the cost of insurance charges deducted from your Account Value on the last Monthly Processing Date before the insured person’s 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:
· The total premium we receive to the time of death; minus
· Any outstanding Loan Amount; minus
· Partial withdrawals taken.
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 that were deducted for the increase.
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 and other current anti-money laundering laws. 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 and loan repayments 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 (traveler’s cheques, cashier’s checks, bank drafts, bank checks and treasurer’s checks, for example) or restrict the amount of certain forms of premium payments or loan repayments (money orders totaling more than $5,000.00, 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 70. See also Premium Payments Affect Your Coverage, page 25.
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 in applicable laws or regulations and our ongoing assessment of our exposure to illegal activity.
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Unclaimed Property
Every state has some form of unclaimed property laws that impose varying legal and practical obligations on insurers and, indirectly, on policy owners, insureds, beneficiaries and other payees of proceeds. Unclaimed property laws generally provide for escheatment to the state of unclaimed proceeds under various circumstances.
Policy owners are urged to keep their own, as well as their beneficiaries’ and other payees’, information up to date, including full names, postal and electronic media addresses, telephone numbers, dates of birth, and Social Security numbers. Such updates should be communicated to Customer Service in writing or by calling 1-877-253-5050.
Cyber Security
Like others in our industry, we are subject to operational and information security risks resulting from “cyber-attacks,” “hacking” or similar illegal or unauthorized intrusions into computer systems and networks. These risks include, among other things, the theft, misuse, corruption and destruction of data maintained online or digitally, denial of service attacks on websites and other operational disruption and unauthorized release of confidential customer information. Although we seek to limit our vulnerability to such risks through technological and other means and we rely on industry standard commercial technologies to maintain the security of our information systems, it is not possible to anticipate or prevent all potential forms of cyber-attack or to guarantee our ability to fully defend against all such attacks. In addition, due to the sensitive nature of much of the financial and similar personal information we maintain, we may be at particular risk for targeting.
Cyber-attacks affecting us, any third party administrator, the underlying funds, intermediaries and other affiliated or third-party service providers may adversely affect us and your policy value. For instance, cyber-attacks may interfere with our processing of policy transactions, including the processing of orders from our website or with the underlying funds, impact our ability to calculate accumulation unit values, cause the release and possible destruction of confidential customer or business information, impede order processing, subject us and/or our service providers and intermediaries to regulatory fines and financial losses and/or cause reputational damage. Cyber security risks may also affect the issuers of securities in which the underlying funds invest, which may cause the funds underlying your policy to lose value. There can be no assurance that we or the underlying funds or our service providers will avoid losses affecting your policy that result from cyber-attacks or information security breaches in the future.
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Transaction Processing
Generally, within seven days of when we receive all information required to process a payment, we pay:
· Death Benefit Proceeds;
· Surrender Value;
· Partial withdrawals; and
· Loan proceeds.
We may delay processing these transactions if:
· The NYSE is closed for trading;
· Trading on the NYSE is restricted by the SEC;
· There is an emergency so that it is not reasonably possible to sell securities in the Subaccounts or to determine the value of a Subaccount’s assets; and
· A governmental body with jurisdiction over the Separate Account allows suspension by its order.
SEC rules and regulations generally determine whether or not these conditions exist. Payment of benefits or values may also be delayed or suspended as required by court order or regulatory proceeding.
We execute transfers among the Subaccounts as of the Valuation Date Customer Service receives your request.
We determine the death benefit as of the date of the insured person’s death. The Death Benefit Proceeds are not affected by subsequent changes in the value of the Subaccounts.
We may delay payment from our Guaranteed Interest Division for up to six months, unless law requires otherwise, of surrender proceeds, partial 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.
Payment of Death Benefit Proceeds
Subject to the conditions and requirements of state law, full payment of the Death Benefit Proceeds (“Proceeds”) to a beneficiary may be made either into an interest bearing retained asset account that is backed by our general account or by check. For additional information about the payment options available to you, please refer to your claim forms or contact us at the address listed on page 2 of this prospectus. Beneficiaries should carefully review all settlement and payment options available under the policy and are encouraged to consult with a financial professional or tax adviser before choosing a settlement or payment option.
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The Retained Asset Account. The retained asset account, known as the Voya Personal Transition Account, is an interest bearing account backed by our general account. The retained asset account is not guaranteed by the FDIC and, as part of our general account, is subject to the claims of our creditors. Beneficiaries that receive their payment through the retained asset account may access the entire Proceeds in the account at any time without penalty through a draftbook feature. The company seeks to earn a profit on the account, and interest credited on the account may vary from time to time but will not be less than the minimum rate stated in the supplemental contract delivered to the beneficiary together with the paperwork to make a claim to the Proceeds. Interest earned on the Proceeds in the account may be less than could be earned if the Proceeds were invested outside of the account. Likewise, interest credited on the Proceeds in the account may be less than under other settlement or payment options available through the policy.
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 person’s death, we may require proof of the deceased insured person’s age and a certified copy of the death certificate.
The beneficiaries and the deceased insured person’s 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.
Telephone Privileges
Telephone privileges may be provided to you and your agent/registered representative and his/her assistant. You may request such privileges for yourself and you may authorize us to grant such privileges to your agent/registered representative and his/her assistant by making the appropriate election(s) on your application or by contacting Customer Service.
Telephone privileges allow you or your agent/registered representative and his/her assistant to call Customer Service to:
· Make transfers;
· Change premium allocations;
· Change your dollar cost averaging and automatic rebalancing programs; and
· Request a loan.
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Customer Service uses reasonable procedures to make sure that instructions received by telephone are genuine. These procedures may include:
· Requiring some form of personal identification;
· Providing written confirmation of any transactions; and
· Tape recording telephone calls.
By accepting telephone privileges, you authorize us to record your telephone calls with us. If we reasonably believe telephone instructions to be genuine, 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 64.
You may revoke these privileges at any time by writing to Customer Service.
Telephone and facsimile privileges may not always be available. Telephone or fax systems, whether yours, your service provider’s or your agent/registered representative’s, 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 request in writing.
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:
· Articles on variable life insurance and other information published in business or financial publications;
· Indices or rankings of investment securities; and
· Comparisons with other investment vehicles, including tax considerations.
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 Net 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 person’s lifetime. If you have not made this election, the beneficiaries may do so within 60 days after we receive proof of the insured person’s 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 $20.00 and the total proceeds must be at least $2,000.00.
The following settlement options are available:
As a general rule, more frequent payments will result in smaller individual payments. Likewise, payments that are anticipated over a longer period of time will also result in smaller individual payments.
If none of these settlement options have been elected, your Net Surrender Value or the Death Benefit Proceeds will be paid in one lump-sum payment.
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Payment of Net Surrender Value or Death Benefit Proceeds
Subject to the conditions and requirements of state law, full payment of your Net Surrender Value or the Death Benefit Proceeds (“Proceeds”) to a beneficiary may be made either into an interest bearing retained asset account that is backed by our general account or by check. For additional information about the payment options available to you, please refer to your claim forms or contact us at the address shown on page 2 of this prospectus. Beneficiaries should carefully review all settlement and payment options available under the policy and are encouraged to consult with a financial professional or tax adviser before choosing a settlement or payment option. See Payment of Death Benefit Proceeds – The Retained Asset Account, page 85, for more information about the retained asset account.
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 policy’s death benefit, Account 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 mutual 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.
Illustrations. To help you better understand how your Account 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. Unless prohibited under state law, we may assess a charge not to exceed $25.00 for each illustration you request after the first in a policy year. See Excess Illustration Fee, page 29. Subject to regulatory approval, personalized illustrations may be based upon a weighted average rather than an arithmetic average 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 Customer Service 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.
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We sell the policy 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 Voya America Equities, Inc., our affiliate and the principal underwriter and distributor of the policy. Voya America Equities, Inc. is organized under the laws of the State of Colorado, registered with the SEC as a broker/dealer under the Securities Exchange Act of 1934, and a member of FINRA. Its principal office is located at One Orange Way, Windsor, Connecticut 06095.
Voya America Equities, Inc. offers the securities under the policies on a continuous basis. For the years ended December 31, 2016, 2015 and 2014, the aggregate amount of underwriting commissions we paid to Voya America Equities, Inc. was $8,863,979.00, $11,414,036.00 and $12,296,124.00, respectively.
Voya America Equities, Inc. does not retain any commissions or other amounts paid to it by us for sales of the policy. Rather, it pays all the amounts received from us to the broker/dealers for selling the policy and part of that payment goes to your agent/registered representative.
Voya Financial Advisors, Inc., an affiliated broker-dealer, has entered into an agreement with Voya America Equities, Inc. for the sale of our variable life products.
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 or supplemental commissions. However categorized, commissions paid will not exceed the total of the percentages shown below.
Base commissions consist of a percentage of premium we receive for the policy up to the target premium amount and a percentage of premium we receive for the policy in excess of the target premium amount. We pay up to 90.00% of premium received up to target premium and 4.00% of premium received in excess of target premium received in the first segment year and 4.00% of premium received in renewal segment years two through five. These percentages may decrease thereafter.
Supplemental or wholesaling 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 such commissions that we 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 60.00%.
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Generally, the commissions paid on premiums for Stated Death Benefit 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 appropriate usage of the Adjustable Term Insurance Rider coverage for your particular situation.
In addition to the sales compensation described above, Voya America Equities, Inc. or the company, as appropriate, may also pay broker/dealers additional compensation or reimbursement of expenses for their efforts in selling the policy to you and other customers. These amounts may include:
· Marketing/distribution allowances which may be based on the percentages of premium received, the aggregate commissions paid and/or the aggregate assets held in relation to certain types of designated insurance products issued by the company and/or its affiliates during the year;
· Loans or advances of commissions in anticipation of future receipt of premiums (a form of lending to agents/registered representatives). These loans may have advantageous terms such as reduction or elimination of the interest charged on the loan and/or forgiveness of the principal amount of the loan, which terms may be conditioned on fixed insurance product sales;
· Education and training allowances to facilitate our attendance at certain educational and training meetings to provide information and training about our products. We also hold training programs from time to time at our own expense;
· Sponsorship payments or reimbursements for broker/dealers to use in sales contests and/or meetings for their agents/registered representatives who sell our products. We do not hold contests based solely on sales of this product;
· Certain overrides and other benefits that may include cash compensation based on the amount of earned commissions, agent/representative recruiting or other activities that promote the sale of the policy; and
· Additional cash or noncash compensation and reimbursements permissible under existing law. This may include, but is not limited to, cash incentives, merchandise, trips, occasional entertainment, meals and tickets to sporting events, client appreciation events, business and educational enhancement items, payment for travel expenses (including meals and lodging) to pre-approved training and education seminars and payment for advertising and sales campaigns.
We may pay commissions, dealer concessions, wholesaling fees, overrides, bonuses, other allowances and benefits and the costs of all other incentives or training programs from our resources, which include the fees and charges imposed under the policy.
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90
The following is a list of the top 25 broker/dealers that, during 2016, received the most, in the aggregate, from us in connection with the sale of registered variable life insurance policies issued by us, ranked by total dollars received and by total commissions paid:
· Voya Financial Advisors, Inc.;
· M Holdings Securities, Inc.;
· Raymond James Financial Services, Inc.;
· LPL Financial Corporation;
· Kestra Investment Services, LLC;
· First Heartland Capital, Inc.;
· Lincoln Investment Planning, Inc.;
· P.J. Robb Variable Corporation;
· Cetera Advisor Networks LLC;
· Packerland Brokerage Services, Inc.;
· Centaurus Financial, Inc.;
· M Financial Holdings, Inc.;
· Raymond James and Associates, Inc.;
· National Planning Corporation;
· The Leaders Group, Inc.;
· Royal Alliance Associates Inc.;
· Cambridge Investment Research Inc.;
· Ameriprise Financial Services Inc.;
· Stanley Laman Group Securities, LLC;
· SII Investments Inc.;
· Triad Advisors, Inc.;
· Commonwealth Financial Network®;
· Sagepoint Financial, Inc.;
· Cetera Advisors LLC; and
· Purshe Kaplan Sterling Investment, Inc.
This is a general discussion of the types and levels of compensation paid by us for the sale of our variable life insurance policies. It is important for you to know that the payment of volume or sales-based compensation to a broker/dealer or registered representative may provide that registered representative a financial incentive to promote our policies over those of another company and may also provide a financial incentive to promote the policy offered by this prospectus over one of our other policies.
We are not aware of any pending legal proceedings that are likely to have a material adverse effect upon the company’s ability to meet its obligations under the policy, Voya America Equities, Inc.’s ability to distribute the policy or upon the Separate Account.
·
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· Litigation. Notwithstanding the foregoing, the company and/or Voya America Equities, Inc., is a defendant in a number of litigation matters arising from the conduct of its business, both in the ordinary course and otherwise. In some of these matters, claimants seek to recover very large or indeterminate amounts, including compensatory, punitive, treble and exemplary damages. Certain claims are asserted as class actions. Modern pleading practice in the U.S. permits considerable variation in the assertion of monetary damages and other relief. The variability in pleading requirements and past experience demonstrates that the monetary and other relief that may be requested in a lawsuit or claim oftentimes bears little relevance to the merits or potential value of a claim.
· Regulatory Matters. As with other financial services companies, the company and its affiliates, including Voya America Equities, Inc., periodically receive 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 company or the financial services industry. It is the practice of the company to cooperate fully in these matters. Regulatory investigations, exams, inquiries and audits could result in regulatory action against the company or subject the company to settlement payments, fines, penalties and other financial consequences, as well as changes to the company’s policies and procedures.
The outcome of a litigation or regulatory matter and the amount or range of potential loss is difficult to forecast and estimating potential losses requires significant management judgment. It is not possible to predict the ultimate outcome for all pending litigation and regulatory matters and given the large and indeterminate amounts sought and the inherent unpredictability of such matters, it is possible that an adverse outcome in certain litigation or regulatory matters could, from time to time, have a material adverse effect upon the company's results of operations or cash flows in a particular quarterly or annual period.
Financial statements of the Separate Account and the company are contained in the Statement of Additional Information. To request a free Statement of Additional Information, please contact Customer Service at the address or telephone number on the back of this prospectus.
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Definition of Life Insurance Factors
Guideline Premium Test Factors
Attained Age |
Factor |
Attained Age |
Factor |
Attained Age |
Factor |
Attained Age |
Factor |
Attained 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 policy’s death benefit must be sufficient so that the Account Value does not at any time exceed the net single premium required to fund the policy’s 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 2001 Commissioner’s 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
Funds Currently Available Through the Separate Account
The following chart lists the mutual funds that are currently available through the Subaccounts of the Separate Account, along with each fund’s investment adviser/subadviser and investment objective. More detailed information about the funds can be found in the current prospectus and Statement of Additional Information for each fund. If you received a summary prospectus for any of the funds available through your policy, you may obtain a full prospectus and other fund information free of charge by either accessing the internet address, calling the telephone number or sending an email request to the email address shown on the front of the fund’s summary prospectus.
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 Account Value 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 FDIC or any other government agency.
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
American Funds Insurance Series® – Growth Fund
Investment Adviser: Capital Research and Management CompanySM
|
Seeks growth of capital. |
American Funds Insurance Series® – Growth-Income Fund
Investment Adviser: Capital Research and Management CompanySM
|
Seeks long-term growth of capital and income. |
American Funds Insurance Series® – International Fund
Investment Adviser: Capital Research and Management CompanySM
|
Seeks long-term growth of capital. |
BlackRock Global Allocation V.I. Fund
Investment Adviser: BlackRock Advisors, LLC
|
Seeks high total investment return. |
Fidelity® VIP Contrafund ® Portfolio
Investment Adviser: Fidelity Management & Research Company
Subadvisers: FMR Co., Inc. and other investment advisers
|
Seeks long-term capital appreciation. |
Fidelity® VIP Equity-Income Portfolio
Investment Adviser: Fidelity Management & Research Company
Subadvisers: FMR Co., Inc. and other investment advisers
|
Seeks reasonable income. Also considers the potential for capital appreciation. Seeks to achieve a yield which exceeds the composite yield on the securities comprising the S&P 500® Index. |
B-1
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
M Capital Appreciation Fund
Investment Adviser: M Financial Investment Advisers, Inc.
|
Seeks to provide maximum capital appreciation. |
M International Equity Fund
Investment Adviser: M Financial Investment Advisers, Inc.
|
Seeks to provide long-term capital appreciation. |
M Large Cap Growth Fund
Investment Adviser: M Financial Investment Advisers, Inc.
|
Seeks to provide long-term capital appreciation. |
M Large Cap Value Fund
Investment Adviser: M Financial Investment Advisers, Inc.
|
Seeks to provide long-term capital appreciation. |
Neuberger Berman AMT Socially Responsive Portfolio®
Investment Adviser: Neuberger Berman Investment Advisers LLC
|
Seeks long-term growth of capital by investing primarily in securities of companies that meet the Fund’s financial criteria and social policy. |
Voya Balanced Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks total return consisting of capital appreciation (both realized and unrealized) and current income; the secondary investment objective is long-term capital appreciation. |
Voya Global Bond Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to maximize total return through a combination of current income and capital appreciation. |
Voya Global Equity Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks long-term capital growth and current income. |
B-2
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
Voya Global Perspectives® Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks total return. |
Voya Government Liquid Assets Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks high level of current income consistent with the preservation of capital and liquidity. |
Voya Growth and Income Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to maximize total return through investments in a diversified portfolio of common stock and securities convertible into common stocks. It is anticipated that capital appreciation and investment income will both be major factors in achieving total return.
|
Voya Index Plus LargeCap Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to outperform the total return performance of the S&P 500® Index while maintaining a market level of risk. |
Voya Index Plus MidCap Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to outperform the total return performance of the S&P MidCap 400® Index while maintaining a market level of risk. |
Voya Index Plus SmallCap Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to outperform the total return performance of the S&P SmallCap 600® Index while maintaining a market level of risk. |
Voya Intermediate Bond Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to maximize total return consistent with reasonable risk. The Portfolio seeks its objective through investments in a diversified portfolio consisting primarily of debt securities. It is anticipated that capital appreciation and investment income will both be major factors in achieving total return.
|
Voya International Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of a widely accepted international index. |
B-3
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
Voya Large Cap Growth Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks long-term capital growth. |
Voya Large Cap Value Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks long-term growth of capital and current income. |
Voya Limited Maturity Bond Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks highest current income consistent with low risk to principal and liquidity and secondarily, seeks to enhance its 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.
|
Voya Multi-Manager Large Cap Core Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Columbia Management Investment Advisers, LLC and The London Company of Virginia, LLC d/b/a The London Company
|
Seeks reasonable income and capital growth. |
Voya Retirement Growth Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks a high level of total return (consisting of capital appreciation and income) consistent with a level of risk that can be expected to be greater than that of Voya Retirement Moderate Growth Portfolio. |
Voya Retirement Moderate Growth Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks a high level of total return (consisting of capital appreciation and income) consistent with a level of risk that can be expected to be greater than that of Voya Retirement Moderate Portfolio but less than that of Voya Retirement Growth Portfolio.
|
Voya Retirement Moderate Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks a high level of total return (consisting of capital appreciation and income) consistent with a level of risk that can be expected to be greater than that of Voya Retirement Conservative Portfolio but less than that of Voya Retirement Moderate Growth Portfolio.
|
B-4
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
Voya RussellTM Large Cap Growth Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of the Russell Top 200® Growth Index. |
Voya RussellTM Large Cap Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of the Russell Top 200® Index. |
Voya RussellTM Large Cap Value Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of the Russell Top 200® Value Index. |
Voya RussellTM Mid Cap Growth Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of the Russell Midcap® Growth Index. |
Voya RussellTM Small Cap Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of the Russell 2000® Index. |
Voya Small Company Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks growth of capital primarily through investment in a diversified portfolio of common stock of companies with smaller market capitalizations. |
Voya SmallCap Opportunities Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks long-term capital appreciation. |
Voya Solution Moderately Aggressive Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks to provide capital growth through a diversified asset allocation strategy. |
B-5
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
Voya U.S. Bond Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks investment results (before fees and expenses) that correspond to the total return (which includes capital appreciation and income) of the Bloomberg Barclays U.S. Aggregate Bond Index. |
Voya U.S. Stock Index Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Voya Investment Management Co. LLC
|
Seeks total return. |
VY® Baron Growth Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: BAMCO, Inc.
|
Seeks capital appreciation. |
VY® Clarion Global Real Estate Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: CBRE Clarion Securities LLC
|
Seeks high total return consisting of capital appreciation and current income. |
VY® Columbia Small Cap Value II Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Columbia Management Investment Advisers, LLC
|
Seeks long-term growth of capital. |
VY® FMR® Diversified Mid Cap Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Fidelity Management & Research Company
(FMR® is a registered service mark of FMR LLC. Used with permission.)
|
Seeks long-term growth of capital. |
VY® Invesco Comstock Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Invesco Advisers, Inc.
|
Seeks capital growth and income. |
VY® Invesco Equity and Income Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Invesco Advisers, Inc.
|
Seeks total return consisting of long-term capital appreciation and current income. |
B-6
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
VY® Invesco Growth and Income Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Invesco Advisers, Inc.
|
Seeks long-term growth of capital and income. |
VY® JPMorgan Emerging Markets Equity Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: J.P. Morgan Investment Management Inc.
|
Seeks capital appreciation. |
VY® JPMorgan Small Cap Core Equity Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: J.P. Morgan Investment Management Inc.
|
Seeks capital growth over the long-term. |
VY® Oppenheimer Global Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: OppenheimerFunds, Inc.
|
Seeks capital appreciation. |
VY® Pioneer High Yield Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Pioneer Investment Management, Inc.
|
Seeks to maximize total return through income and capital appreciation. |
VY® T. Rowe Price Capital Appreciation Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: T. Rowe Price Associates, Inc.
|
Seeks, over the long-term, a high total investment return, consistent with the preservation of capital and with prudent investment risk. |
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: T. Rowe Price Associates, Inc.
|
Seeks long-term capital appreciation. |
VY® T. Rowe Price Equity Income Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: T. Rowe Price Associates, Inc.
|
Seeks a high level of dividend income as well as long-term growth of capital primarily through investments in stocks. |
B-7
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
VY® T. Rowe Price International Stock Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: T. Rowe Price Associates, Inc.
|
Seeks long-term growth of capital. |
VY® Templeton Foreign Equity Portfolio
Investment Adviser: Voya Investments, LLC
Subadvisers: Templeton Investment Counsel, LLC
|
Seeks long-term capital growth. |
B-8
Information Regarding A Closed Subaccount
The Subaccount that invests in the following mutual fund has been closed to new investment:
Fund Name Investment Adviser/Subadviser |
Investment Objective(s) |
VY® JPMorgan Mid Cap Value Portfolio (Class I)
Investment Adviser: Voya Investments, LLC
Subadvisers: J.P. Morgan Investment Management Inc.
|
Seeks growth from capital appreciation. |
Policy owners who have Account Value allocated to the Subaccount that corresponds to this fund may leave their Account Value in this Subaccount, but future allocations and transfers into it are prohibited. If your most recent premium allocation instructions include the Subaccount that corresponds to this fund, premium received that would have been allocated to the Subaccount corresponding to this fund may be automatically allocated among the other available Subaccounts according to your most recent premium allocation instructions. If your most recent allocation instructions do not include any available funds, you must provide us with alternative allocation instructions or the premium payment will be returned to you. You may give us alternative allocation instructions by contacting:
|
Customer Service P.O. Box 5065 Minot, North Dakota 58702-5065 1-877-253-5050 |
Your failure to provide us with alternative allocation instructions before we return your premium payment(s) may result in your policy entering the 61 day grace period and/or your policy lapsing without value. See Lapse, page 70, for more information about how to keep your policy from lapsing. See also Reinstatement, page 71, for information about how to put your policy back in force if it has lapsed.
C-1
Glossary of Important Terms
This glossary identifies some of the important terms that we have used throughout this prospectus and that have special meaning. See also the Terms to Understand section on page 2 of the prospectus, which provides page references to where many of the terms are defined and discussed more fully.
Account Value: The Account Value is equal to the value of: (1) amounts allocated to the Subaccounts of the Separate Account; plus (2) amounts allocated to the Guaranteed Interest Division; plus (3) any amounts set aside in the Loan Division.
Accumulation Unit: An Accumulation Unit is a unit of measurement used to calculate the Account Value in each Subaccount of the Separate Account.
Accumulation Unit Value: The Accumulation Unit Value of a Subaccount of the Separate Account is determined as of each Valuation Date. We use an Accumulation Unit Value to measure the experience of each Subaccount of the Separate Account during a valuation period. The Accumulation Unit Value for a Valuation Date equals the Accumulation Unit Value for the preceding Valuation Date multiplied by the accumulation experience factor for the valuation period ending on the Valuation Date.
Age: Age is the age of the insured person on his or her birthday nearest the Policy Date. We issue your policy at the age shown in your Schedule.
Attained Age: Attained age is the insured person's age as of the Policy Date plus the number of completed policy years.
Base Death Benefit: The Base Death Benefit is the death benefit of your policy and does not include any additional death benefit provided by riders attached to your policy, if any. We calculate the Base Death Benefit according to one of three death benefit options.
Death Benefit Proceeds: Death Benefit Proceeds equals: (1) the Total Death Benefit in effect on the date of the Insured's death; plus (2) any amounts payable under any riders attached to the policy other than the Adjustable Term Insurance Rider; minus (3) any outstanding Loan Amount; minus (4) any outstanding fees and charges incurred before the insured person’s death; and minus (5) any outstanding accelerated benefit lien including accrued lien interest.
General Account: The general account holds all of our assets other than those held in the Separate Account or our other separate accounts. The Guaranteed Interest Division is a part of the general account and provides guarantees of principal and interest. The Loan Division is also part of the general account.
Grace Period: The grace period is the 61 day period after which your policy will lapse unless you make a required premium payment. The grace period will begin on a Monthly Processing Date if on that date the Net Account Value is zero or less.
Guaranteed Interest Division: The Guaranteed Interest Division is another investment option to which you may allocate all or part of the Account Value. The value of the Guaranteed Interest Division is equal to amounts allocated to this division plus any credited interest minus deductions taken from this division.
Guaranteed Interest Division Value: The Guaranteed Interest Division Value equals the Net Premium you allocate to the Guaranteed Interest Division, plus interest earned, minus amounts you transfer out or withdraw. It may be reduced by fees and charges assessed against your Account Value.
D-1
Initial Period: The initial period begins on the Investment Date and ends on the date we mail your policy to you plus five days and plus the right to examine period.
Insured Person: The insured person is the person whose life is insured by your policy. The insured person may or may not be the owner of your policy.
Investment Date: The Investment Date is the first date on which we allocate the Net Premium payment to your policy. We will allocate the initial Net Premium to your policy at the end of the valuation period during which all of the following requirements are satisfied: (1) we receive the amount of premium required for coverage to begin under your policy; (2) we have approved your policy for issue; and (3) all issue requirements have been met and received at Customer Service.
Loan Amount: The Loan Amount equals: (1) any outstanding loan plus accrued loan interest as of the beginning of the policy year; plus (2) new loans; plus (3) accrued but unpaid loan interest; minus (4) loan repayments.
Loan Division: The Loan Division is the part of the general account in which funds are set aside to secure payment of any Loan Amount.
Loan Division Value: The Loan Division value is determined as of each Valuation Date. The Loan Division Value for a Valuation Date equals: (1) the Loan Division Value on the prior Valuation Date; plus (2) any loan interest credited to the Loan Division during the valuation period; plus (3) the amount of any new loan taken during the valuation period; minus (4) any loan repayments, including the repayment of loan interest; plus (5) the amount of accrued and unpaid loan interest if the Valuation Date is a policy anniversary; minus (6) the amount of loan interest credited to the Loan Division during the prior policy year if the Valuation Date is a policy anniversary.
Monthly Deduction: The monthly deduction is equal to the monthly cost of insurance charge, policy charge, administrative charge and mortality and expense risk charge for your policy and the monthly charges, if any, for additional benefits provided by your riders.
Monthly Processing Date: The Monthly Processing Date is the date each month on which the monthly deduction from the Account Value is due. The first Monthly Processing Date is the Policy Date or the Investment Date, if later. Subsequent Monthly Processing Dates are the same calendar day of each month as the Policy Date. If that date is not a Valuation Date, the Monthly Processing Date will be the next Valuation Date.
Net Account Value: The Net Account Value is equal to: (1) the Account Value; minus (2) any Loan Amount.
Net Premium: Net Premium equals: (1) the premium received; minus (2) the premium expense charge. We deduct this charge from each premium before allocating the premium to the Account Value.
Net Surrender Value: The Net Surrender Value equals: (1) the Surrender Value; minus (2) any Loan Amount.
Policy Date: The Policy Date is the date from which we measure policy years, policy months and policy anniversaries, and it determines the Monthly Processing Date. It is the date coverage under the policy begins.
Right to Examine Period: The right to examine period is the number of days after delivery of your policy during which you have the right to examine your policy and return it for a refund.
Scheduled Premium: Scheduled premium is the amount that you indicate on your application as the amount you intend to pay at fixed intervals over a certain period. You may specify the interval as monthly, quarterly, semiannually or annually.
Segment: A Segment is a piece of death benefit coverage. Each increase in the Stated Death Benefit (other than due to a death benefit option change) will create a new Segment.
D-2
Separate Account: The Separate Account is an account established by us, pursuant to the laws of the State of Colorado, to separate the assets funding the benefits for the class of policies to which this policy belongs from our other assets. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940.
Separate Account Value: The Separate Account Value equals your Account Value attributable to amounts invested in the Subaccounts of the Separate Account.
Stated Death Benefit: The Stated Death Benefit is the sum of the Segments under your policy. The Stated Death Benefit changes when there is an increase, decrease or a transaction that causes your policy to change.
Subaccounts: We divide the Separate Account into Subaccounts, each of which invests in a corresponding underlying mutual fund. The current eligible Subaccounts are shown in this prospectus. From time to time, we may add additional Subaccounts. If we do, we may allow you to choose from these other Subaccounts subject to the terms and conditions we may impose on your premium allocations.
Surrender Value: Surrender Value is equal to: (1) the Account Value; minus (2) surrender charges, if any.
Target Death Benefit: The Target Death Benefit is an amount of death benefit coverage scheduled by you at issue and it may vary by year. If you do not have the Adjustable Term Insurance Rider, the Target Death Benefit in all years is the same as the Stated Death Benefit.
Target Premium: Target premium for each Segment of Stated Death Benefit 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. Payment of the target premium does not guarantee that your policy will not lapse, and you may need to pay additional premiums to keep your policy in force.
Total Death Benefit: The Total Death Benefit is equal to the Base Death Benefit, plus the death benefit from your Adjustable Term Insurance Rider, if any.
Valuation Date: A Valuation Date is each date on which the Accumulation Unit Value of the Subaccounts of the Separate Account and the net asset value of the shares of the corresponding mutual funds are determined. Currently, these values are determined after the close of business of the NYSE on any normal business day, Monday through Friday, when the NYSE is open for trading.
Valuation Period: A valuation period is the period that 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.
D-3
If you would like more information about us, the Separate Account or the policy, the following documents are available free upon request:
· Statement of Additional Information (“SAI”) – The SAI contains more specific information about the Separate Account and the policy, as well as the financial statements of the Separate Account and the company. The SAI is incorporated by reference into (made legally part of) this prospectus. The following is the Table of Contents for the SAI:
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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 ..... |
1 |
· A personalized illustration of policy benefits – A personalized illustration can help you understand how the policy works, given the policy’s fees and charges along with the investment options, features and benefits and optional benefits you select. A personalized illustration can also help you compare the policy’s death benefits, Account Value and Surrender Value with other life insurance policies based on the same or similar assumptions. We reserve the right to assess a fee of up to $25.00 for each personalized illustration you request after the first each policy year. See Excess Illustration Fee, page 29. Under certain circumstances, the Accelerated Benefit Rider allows you to accelerate payment of a portion of the eligible death benefit that we otherwise would pay upon the insured person’s death.
To request a free SAI or personalized illustration of policy benefits or to make other inquiries about the policy, please contact:
Customer Service
P.O. Box 5065
Minot, ND 58702-5065
1-877-253-5050
www.voyalifecustomerservice.com
If you received a summary prospectus for any of the mutual funds available through your policy, you may obtain a full prospectus and other fund information free of charge by either accessing the internet address, calling the telephone number or sending an email request to the email address shown on the front of the fund’s summary prospectus. Additional information about us, the Separate Account or the policy (including the SAI) can be reviewed and copied from the SEC’s Internet website (www.sec.gov) or at the SEC’s Public Reference Branch in Washington, DC. Copies of this additional information may also be obtained, upon payment of a duplicating fee, by writing the SEC’s Public Reference Branch at 100 F Street, NE, Room 1580, Washington, DC 20549. More information about operation of the SEC’s 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 333-147534.
1940 Act
File No. 811-08292
1933 Act file No. 333-147534
PART
B
INFORMATION REQUIRED IN A STATEMENT OF ADDITIONAL INFORMATION
SECURITY LIFE SEPARATE ACCOUNT L1 OF SECURITY LIFE OF DENVER INSURANCE COMPANY |
Statement of Additional Information Dated May 1, 2017
VOYA VUL-CV
A Flexible Premium Adjustable Variable Universal Life Insurance Policy
This Statement of Additional Information is not a prospectus and should be read in conjunction with the current Voya VUL-CV prospectus dated May 1, 2017. 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 Customer Service at P.O. Box 5065, Minot, ND 58702-5065, by calling 1-877-253-5050 or by accessing the SEC’s website at 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
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Page |
General Information and History ............................................................................................................. |
2 |
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Performance Reporting and Advertising .................................................................................................. |
2 |
|
|
Experts ........................................................................................................................................................... |
4 |
|
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Financial Statements ................................................................................................................................... |
4 |
|
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Financial Statements of Security Life Separate Account L1 ............................................................... |
1 |
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|
Statutory Basis Financial Statements of Security Life of Denver Insurance Company ................ |
1 |
GENERAL INFORMATION AND HISTORY
Security Life of Denver Insurance Company (“Security Life,” “we,” “us,” “our,” and the “company”) issues the Voya VUL-CV policy and is responsible for providing the policy’s insurance benefits. All guarantees and benefits provided under the policy that are not related to the Separate Account are subject to the claims paying ability of the company and our general account. 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 8055 East Tufts Avenue, Suite 710, Denver, Colorado 80237.
We are an indirect, wholly owned subsidiary of Voya Financial, Inc. (“Voya®”), which until April 7, 2014, was known as ING U.S., Inc. In May, 2013, the common stock of Voya began trading on the New York Stock Exchange (“NYSE”) under the symbol “VOYA” and Voya completed its initial public offering of common stock.
We established the Security Life Separate Account L1 (the “Separate 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 Separate Account is registered with the Securities and Exchange Commission (“SEC”) as a unit investment trust under the Investment Company Act of 1940, as amended. Premium payments may be allocated to one or more of the available Subaccounts of the Separate Account. Each Subaccount invests in shares of a corresponding mutual fund at net asset value. We may make additions to, deletions from or substitutions of available mutual 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 Separate Account are borne by the company. We do, however, receive compensation for certain recordkeeping, administration or other services from the mutual funds or affiliates of the mutual funds available through the policies. See “Fees and Charges” in the prospectus.
The company maintains custody of the assets of the Separate Account. As custodian, the company holds cash balances for the Separate Account pending investment in the mutual funds or distribution. The mutual funds in whose shares the assets of the Subaccounts of the Separate Account are invested each have custodians, as discussed in the respective mutual fund prospectuses.
PERFORMANCE REPORTING AND ADVERTISING
Information regarding the past, or historical, performance of the Subaccounts of the Separate Account and the mutual funds available for investment through the Subaccounts of the Separate Account may appear in advertisements, sales literature or reports to policy owners or prospective purchasers. SUCH PERFORMANCE INFORMATION FOR THE SUBACCOUNTS 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 POLICY’S TAX, SALES, 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.
2
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.
Performance history of the Subaccounts of the Separate Account and the corresponding mutual 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 mutual fund has been in existence for these periods) and since the inception date of the mutual fund (if the mutual 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 Subaccount commenced operation. We will calculate such performance information based on the assumption that the Subaccounts were in existence for the same periods as those indicated for the mutual funds, with the level of charges at the Separate Account level that were in effect at the inception of the Subaccounts. Performance information will be specific to the class of mutual fund shares offered through the policy, however, for periods prior to the date a class of mutual fund shares commenced operations, performance information may be based on a different class of shares of the same mutual fund. In this case, performance for the periods prior to the date a class of mutual fund shares commenced operations will be adjusted by the mutual fund fees and expenses associated with the class of mutual fund shares offered through the policy.
We may compare performance of the Subaccounts and/or the mutual 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 Subaccounts, 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, Barron’s, Kiplinger’s 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.
Lipper’s and Morningstar’s 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 Subaccount in advertising and sales literature to the Standard & Poor’s 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 Subaccount 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 policy’s 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 Separate 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 mutual funds of 0.00% and other percentages not to exceed 12.00% or on the actual historical experience of the mutual funds as if the Subaccounts had been in existence and a policy issued for the same periods as those indicated for the mutual 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 Customer Service at P.O. Box 5065, Minot, ND 58702-5065 or by calling 1-877-253-5050.
3
EXPERTS
The statements of assets and liabilities of Security Life Separate Account L1 as of December 31, 2016, and the related statements of operations and changes in net assets for the periods disclosed in the financial statements, and the statutory basis financial statements of Security Life of Denver Insurance Company as of December 31, 2016 and 2015, and for each of the three years in the period ended December 31, 2016, included in this Statement of Additional Information, have been audited by Ernst & Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
The primary business address of Ernst & Young LLP is 200 Clarendon St., Boston, MA 02116.
FINANCIAL STATEMENTS
The financial statements of the Separate Account reflect the operations of the Separate Account as of and for the year ended December 31, 2016, and have been audited by Ernst & Young LLP, independent registered public accounting firm.
The statutory basis financial statements of the Company as of December 31, 2016 and 2015, and for each of the three years in the period ended December 31, 2015, 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 Separate 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 Separate Account. The statutory basis financial statements of the Company as of December 31, 2016 and 2015, and for each of the three years in the period ended December 31, 2016, have been prepared on the basis of statutory accounting practices prescribed or permitted by the State of Colorado Division of Insurance.
Invesco V.I. Core Equity Fund - Series I Shares | Growth Fund - Class 2 | Growth-Income Fund - Class 2 | International Fund - Class 2 | BlackRock Global Allocation V.I. Fund - Class III | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 5,387 | $ | 53,559 | $ | 33,608 | $ | 46,052 | $ | 10,991 | ||||||||||
Total assets | 5,387 | 53,559 | 33,608 | 46,052 | 10,991 | |||||||||||||||
Net assets | $ | 5,387 | $ | 53,559 | $ | 33,608 | $ | 46,052 | $ | 10,991 | ||||||||||
Total number of mutual fund shares | 155,775 | 800,350 | 763,821 | 2,747,703 | 822,034 | |||||||||||||||
Cost of mutual fund shares | $ | 4,219 | $ | 49,735 | $ | 30,121 | $ | 49,197 | $ | 11,851 |
Fidelity® VIP Equity-Income Portfolio - Service Class | Fidelity® VIP Contrafund® Portfolio - Service Class | Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | M Capital Appreciation Fund | M International Equity Fund | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 6,574 | $ | 25,906 | $ | 183 | $ | 9,495 | $ | 8,275 | ||||||||||
Total assets | 6,574 | 25,906 | 183 | 9,495 | 8,275 | |||||||||||||||
Net assets | $ | 6,574 | $ | 25,906 | $ | 183 | $ | 9,495 | $ | 8,275 | ||||||||||
Total number of mutual fund shares | 300,741 | 784,070 | 14,501 | 324,266 | 744,132 | |||||||||||||||
Cost of mutual fund shares | $ | 6,704 | $ | 24,256 | $ | 180 | $ | 8,969 | $ | 8,635 |
M Large Cap Growth Fund | M Large Cap Value Fund | Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | Van Eck VIP Global Hard Assets Fund - Initial Class | Voya Balanced Portfolio - Class I | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 2,956 | $ | 2,470 | $ | 1,521 | $ | 896 | $ | 10,013 | ||||||||||
Total assets | 2,956 | 2,470 | 1,521 | 896 | 10,013 | |||||||||||||||
Net assets | $ | 2,956 | $ | 2,470 | $ | 1,521 | $ | 896 | $ | 10,013 | ||||||||||
Total number of mutual fund shares | 148,014 | 191,636 | 67,371 | 37,124 | 670,695 | |||||||||||||||
Cost of mutual fund shares | $ | 3,554 | $ | 2,528 | $ | 1,289 | $ | 1,039 | $ | 8,822 |
Voya Intermediate Bond Portfolio - Class I | Voya Global Perspectives® Portfolio - Class I | Voya Government Liquid Assets Portfolio - Class I | Voya Government Liquid Assets Portfolio - Service Class | Voya Large Cap Growth Portfolio - Institutional Class | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 69,907 | $ | 8,324 | $ | 26,423 | $ | 17,967 | $ | 39,997 | ||||||||||
Total assets | 69,907 | 8,324 | 26,423 | 17,967 | 39,997 | |||||||||||||||
Net assets | $ | 69,907 | $ | 8,324 | $ | 26,423 | $ | 17,967 | $ | 39,997 | ||||||||||
Total number of mutual fund shares | 5,521,847 | 805,001 | 26,423,461 | 17,966,996 | 2,306,639 | |||||||||||||||
Cost of mutual fund shares | $ | 70,842 | $ | 8,278 | $ | 26,423 | $ | 17,967 | $ | 41,296 |
Voya Large Cap Value Portfolio - Institutional Class | Voya Limited Maturity Bond Portfolio - Service Class | Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | Voya Retirement Growth Portfolio - Institutional Class | Voya Retirement Moderate Growth Portfolio - Institutional Class | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 16,053 | $ | 33,533 | $ | 1,844 | $ | 31,016 | $ | 14,818 | ||||||||||
Total assets | 16,053 | 33,533 | 1,844 | 31,016 | 14,818 | |||||||||||||||
Net assets | $ | 16,053 | $ | 33,533 | $ | 1,844 | $ | 31,016 | $ | 14,818 | ||||||||||
Total number of mutual fund shares | 1,337,735 | 3,339,914 | 123,815 | 2,353,256 | 1,217,603 | |||||||||||||||
Cost of mutual fund shares | $ | 16,327 | $ | 34,000 | $ | 1,801 | $ | 26,792 | $ | 14,337 |
Voya Retirement Moderate Portfolio - Institutional Class | Voya U.S. Stock Index Portfolio - Institutional Class | VY® Clarion Global Real Estate Portfolio - Service Class | VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | VY® Invesco Growth and Income Portfolio - Service Class | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 8,028 | $ | 167,819 | $ | 10,562 | $ | 14,831 | $ | 13,351 | ||||||||||
Total assets | 8,028 | 167,819 | 10,562 | 14,831 | 13,351 | |||||||||||||||
Net assets | $ | 8,028 | $ | 167,819 | $ | 10,562 | $ | 14,831 | $ | 13,351 | ||||||||||
Total number of mutual fund shares | 699,295 | 12,169,605 | 905,855 | 953,177 | 495,601 | |||||||||||||||
Cost of mutual fund shares | $ | 8,363 | $ | 144,905 | $ | 10,654 | $ | 16,052 | $ | 12,952 |
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class | VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | VY® T. Rowe Price Equity Income Portfolio - Institutional Class | VY® T. Rowe Price International Stock Portfolio - Institutional Class | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 26,095 | $ | 32,058 | $ | 69,158 | $ | 28,884 | $ | 8,519 | ||||||||||
Total assets | 26,095 | 32,058 | 69,158 | 28,884 | 8,519 | |||||||||||||||
Net assets | $ | 26,095 | $ | 32,058 | $ | 69,158 | $ | 28,884 | $ | 8,519 | ||||||||||
Total number of mutual fund shares | 1,726,984 | 1,636,435 | 2,713,151 | 2,085,467 | 664,547 | |||||||||||||||
Cost of mutual fund shares | $ | 29,846 | $ | 28,126 | $ | 70,542 | $ | 28,679 | $ | 8,235 |
Voya Global Bond Portfolio - Service Class | Voya Solution Moderately Aggressive Portfolio - Initial Class | VY® American Century Small-Mid Cap Value Portfolio - Initial Class | VY® Baron Growth Portfolio - Initial Class | VY® Columbia Small Cap Value II Portfolio - Initial Class | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 14,243 | $ | 3,021 | $ | 63 | $ | 9,998 | $ | 10,164 | ||||||||||
Total assets | 14,243 | 3,021 | 63 | 9,998 | 10,164 | |||||||||||||||
Net assets | $ | 14,243 | $ | 3,021 | $ | 63 | $ | 9,998 | $ | 10,164 | ||||||||||
Total number of mutual fund shares | 1,368,208 | 255,344 | 4,928 | 371,406 | 533,526 | |||||||||||||||
Cost of mutual fund shares | $ | 15,170 | $ | 3,005 | $ | 59 | $ | 10,699 | $ | 8,476 |
VY® Invesco Comstock Portfolio - Initial Class | VY® Invesco Equity and Income Portfolio - Initial Class | VY® JPMorgan Mid Cap Value Portfolio - Initial Class | VY® Oppenheimer Global Portfolio - Initial Class | VY® Pioneer High Yield Portfolio - Initial Class | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 7,558 | $ | 9,331 | $ | 15,818 | $ | 10,111 | $ | 23,621 | ||||||||||
Total assets | 7,558 | 9,331 | 15,818 | 10,111 | 23,621 | |||||||||||||||
Net assets | $ | 7,558 | $ | 9,331 | $ | 15,818 | $ | 10,111 | $ | 23,621 | ||||||||||
Total number of mutual fund shares | 432,635 | 208,012 | 800,928 | 610,545 | 2,020,612 | |||||||||||||||
Cost of mutual fund shares | $ | 6,520 | $ | 9,600 | $ | 15,993 | $ | 11,435 | $ | 23,066 |
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | VY® Templeton Foreign Equity Portfolio - Initial Class | Voya Strategic Allocation Conservative Portfolio - Class I | Voya Strategic Allocation Growth Portfolio - Class I | Voya Strategic Allocation Moderate Portfolio - Class I | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 37,754 | $ | 11,147 | $ | 62 | $ | 242 | $ | 1,029 | ||||||||||
Total assets | 37,754 | 11,147 | 62 | 242 | 1,029 | |||||||||||||||
Net assets | $ | 37,754 | $ | 11,147 | $ | 62 | $ | 242 | $ | 1,029 | ||||||||||
Total number of mutual fund shares | 3,764,060 | 1,012,413 | 4,979 | 17,470 | 78,090 | |||||||||||||||
Cost of mutual fund shares | $ | 37,873 | $ | 10,906 | $ | 55 | $ | 147 | $ | 772 |
Voya Growth and Income Portfolio - Class I | Voya Global Equity Portfolio - Class I | Voya Index Plus LargeCap Portfolio - Class I | Voya Index Plus MidCap Portfolio - Class I | Voya Index Plus SmallCap Portfolio - Class I | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 7,832 | $ | 11,181 | $ | 16,264 | $ | 12,602 | $ | 8,685 | ||||||||||
Total assets | 7,832 | 11,181 | 16,264 | 12,602 | 8,685 | |||||||||||||||
Net assets | $ | 7,832 | $ | 11,181 | $ | 16,264 | $ | 12,602 | $ | 8,685 | ||||||||||
Total number of mutual fund shares | 281,003 | 1,214,050 | 672,364 | 576,223 | 322,729 | |||||||||||||||
Cost of mutual fund shares | $ | 7,973 | $ | 11,420 | $ | 10,485 | $ | 12,416 | $ | 6,846 |
Voya International Index Portfolio - Class S | Voya Russell™ Large Cap Growth Index Portfolio - Class I | Voya Russell™ Large Cap Index Portfolio - Class I | Voya Russell™ Large Cap Value Index Portfolio - Class I | Voya Russell™ Mid Cap Growth Index Portfolio - Class I | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 21,556 | $ | 36,096 | $ | 5,898 | $ | 6,644 | $ | 4,722 | ||||||||||
Total assets | 21,556 | 36,096 | 5,898 | 6,644 | 4,722 | |||||||||||||||
Net assets | $ | 21,556 | $ | 36,096 | $ | 5,898 | $ | 6,644 | $ | 4,722 | ||||||||||
Total number of mutual fund shares | 2,463,539 | 1,325,116 | 338,759 | 316,217 | 165,618 | |||||||||||||||
Cost of mutual fund shares | $ | 22,686 | $ | 23,821 | $ | 5,235 | $ | 5,733 | $ | 4,609 |
Voya Russell™ Small Cap Index Portfolio - Class I | Voya Small Company Portfolio - Class S | Voya U.S. Bond Index Portfolio - Class I | Voya MidCap Opportunities Portfolio - Class I | Voya SmallCap Opportunities Portfolio - Class I | ||||||||||||||||
Assets | ||||||||||||||||||||
Investments in mutual funds | ||||||||||||||||||||
at fair value | $ | 5,501 | $ | 14,765 | $ | 7,405 | $ | 2,339 | $ | 7,011 | ||||||||||
Total assets | 5,501 | 14,765 | 7,405 | 2,339 | 7,011 | |||||||||||||||
Net assets | $ | 5,501 | $ | 14,765 | $ | 7,405 | $ | 2,339 | $ | 7,011 | ||||||||||
Total number of mutual fund shares | 368,934 | 682,624 | 703,202 | 189,509 | 273,322 | |||||||||||||||
Cost of mutual fund shares | $ | 5,390 | $ | 12,659 | $ | 7,527 | $ | 2,150 | $ | 7,149 |
Invesco V.I. Core Equity Fund - Series I Shares | Growth Fund - Class 2 | Growth-Income Fund - Class 2 | International Fund - Class 2 | BlackRock Global Allocation V.I.Fund - Class III | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 41 | $ | 400 | $ | 473 | $ | 631 | $ | 134 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 36 | 129 | 81 | 113 | 17 | ||||||||||||||||
Total expenses | 36 | 129 | 81 | 113 | 17 | ||||||||||||||||
Net investment income (loss) | 5 | 271 | 392 | 518 | 117 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 184 | 2,568 | 1,281 | 234 | (424 | ) | |||||||||||||||
Capital gains distributions | 364 | 4,670 | 3,490 | 3,878 | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 548 | 7,238 | 4,771 | 4,112 | (424 | ) | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | (58 | ) | (2,923 | ) | (1,793 | ) | (3,064 | ) | 684 | ||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 490 | 4,315 | 2,978 | 1,048 | 260 | ||||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 495 | $ | 4,586 | $ | 3,370 | $ | 1,566 | $ | 377 |
Fidelity® VIP Equity-Income Portfolio - Service Class | Fidelity® VIP Contrafund® Portfolio - Service Class | Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | M Capital Appreciation Fund | M International Equity Fund | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 137 | $ | 182 | $ | 4 | $ | 33 | $ | 98 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 16 | 76 | 1 | 62 | 59 | ||||||||||||||||
Total expenses | 16 | 76 | 1 | 62 | 59 | ||||||||||||||||
Net investment income (loss) | 121 | 106 | 3 | (29 | ) | 39 | |||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | (15 | ) | 1,909 | 4 | 36 | (52 | ) | ||||||||||||||
Capital gains distributions | 370 | 2,403 | — | 331 | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 355 | 4,312 | 4 | 367 | (52 | ) | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 510 | (2,560 | ) | 3 | 1,304 | (51 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 865 | 1,752 | 7 | 1,671 | (103 | ) | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 986 | $ | 1,858 | $ | 10 | $ | 1,642 | $ | (64 | ) |
M Large Cap Growth Fund | M Large Cap Value Fund | Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | Van Eck VIP Global Hard Assets Fund - Initial Class | Voya Balanced Portfolio - Class I | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 53 | $ | 45 | $ | 10 | $ | 4 | $ | 176 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 14 | 11 | 4 | 5 | 41 | ||||||||||||||||
Total expenses | 14 | 11 | 4 | 5 | 41 | ||||||||||||||||
Net investment income (loss) | 39 | 34 | 6 | (1 | ) | 135 | |||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 24 | (112 | ) | 57 | (179 | ) | 358 | ||||||||||||||
Capital gains distributions | 130 | — | 53 | — | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 154 | (112 | ) | 110 | (179 | ) | 358 | ||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | (387 | ) | 239 | 14 | 499 | 212 | |||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | (233 | ) | 127 | 124 | 320 | 570 | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | (194 | ) | $ | 161 | $ | 130 | $ | 319 | $ | 705 |
Voya Intermediate Bond Portfolio - Class I | Voya Global Perspectives® Portfolio - Class I | Voya Government Liquid Assets Portfolio - Class I | Voya Government Liquid Assets Portfolio - Service Class | Voya Large Cap Growth Portfolio - Institutional Class | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 1,676 | $ | 11 | $ | 43 | $ | — | $ | 219 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 242 | 1 | 245 | — | 189 | ||||||||||||||||
Total expenses | 242 | 1 | 245 | — | 189 | ||||||||||||||||
Net investment income (loss) | 1,434 | 10 | (202 | ) | — | 30 | |||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 48 | (14 | ) | — | — | 1,232 | |||||||||||||||
Capital gains distributions | 581 | — | 26 | 17 | 5,043 | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 629 | (14 | ) | 26 | 17 | 6,275 | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 842 | 76 | — | — | (5,004 | ) | |||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 1,471 | 62 | 26 | 17 | 1,271 | ||||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 2,905 | $ | 72 | $ | (176 | ) | $ | 17 | $ | 1,301 |
Voya Large Cap Value Portfolio - Institutional Class | Voya Limited Maturity Bond Portfolio - Service Class | Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | Voya Retirement Growth Portfolio - Institutional Class | Voya Retirement Moderate Growth Portfolio - Institutional Class | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 376 | $ | 355 | $ | 39 | $ | 824 | $ | 372 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 57 | 95 | 10 | 53 | 38 | ||||||||||||||||
Total expenses | 57 | 95 | 10 | 53 | 38 | ||||||||||||||||
Net investment income (loss) | 319 | 260 | 29 | 771 | 334 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | (143 | ) | (66 | ) | 1 | 985 | 392 | ||||||||||||||
Capital gains distributions | 464 | 282 | 65 | 1,553 | 1,184 | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 321 | 216 | 66 | 2,538 | 1,576 | ||||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 1,284 | (284 | ) | 48 | (1,042 | ) | (955 | ) | |||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 1,605 | (68 | ) | 114 | 1,496 | 621 | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 1,924 | $ | 192 | $ | 143 | $ | 2,267 | $ | 955 |
Voya Retirement Moderate Portfolio - Institutional Class | Voya U.S. Stock Index Portfolio - Institutional Class | VY® Clarion Global Real Estate Portfolio - Service Class | VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | VY® Invesco Growth and Income Portfolio - Service Class | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 186 | $ | 3,277 | $ | 120 | $ | 118 | $ | 264 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 33 | 916 | 39 | 67 | 28 | ||||||||||||||||
Total expenses | 33 | 916 | 39 | 67 | 28 | ||||||||||||||||
Net investment income (loss) | 153 | 2,361 | 81 | 51 | 236 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 30 | 2,058 | 343 | 129 | 134 | ||||||||||||||||
Capital gains distributions | 386 | 9,229 | — | 1,367 | 1,254 | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 416 | 11,287 | 343 | 1,496 | 1,388 | ||||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | (118 | ) | 3,471 | (391 | ) | 63 | 545 | ||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 298 | 14,758 | (48 | ) | 1,559 | 1,933 | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 451 | $ | 17,119 | $ | 33 | $ | 1,610 | $ | 2,169 |
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class | VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | VY® T. Rowe Price Equity Income Portfolio - Institutional Class | VY® T. Rowe Price International Stock Portfolio - Institutional Class | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 416 | $ | 229 | $ | 1,085 | $ | 683 | $ | 149 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 105 | 166 | 210 | 110 | 27 | ||||||||||||||||
Total expenses | 105 | 166 | 210 | 110 | 27 | ||||||||||||||||
Net investment income (loss) | 311 | 63 | 875 | 573 | 122 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | (2,846 | ) | 1,565 | 3,969 | 510 | 139 | |||||||||||||||
Capital gains distributions | — | 2,519 | 6,162 | 2,669 | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | (2,846 | ) | 4,084 | 10,131 | 3,179 | 139 | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 6,060 | 1,654 | (5,710 | ) | 861 | (85 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 3,214 | 5,738 | 4,421 | 4,040 | 54 | ||||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 3,525 | $ | 5,801 | $ | 5,296 | $ | 4,613 | $ | 176 |
Voya Global Bond Portfolio - Service Class | Voya Solution Moderately Aggressive Portfolio - Initial Class | VY® American Century Small-Mid Cap Value Portfolio - Initial Class | VY® Baron Growth Portfolio - Initial Class | VY® Columbia Small Cap Value II Portfolio - Initial Class | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 221 | $ | 35 | $ | 1 | $ | — | $ | 45 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 62 | 6 | — | 38 | 31 | ||||||||||||||||
Total expenses | 62 | 6 | — | 38 | 31 | ||||||||||||||||
Net investment income (loss) | 159 | 29 | 1 | (38 | ) | 14 | |||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | (267 | ) | (11 | ) | 5 | 718 | 637 | ||||||||||||||
Capital gains distributions | — | 41 | 5 | 1,318 | 346 | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | (267 | ) | 30 | 10 | 2,036 | 983 | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 903 | 108 | 3 | (1,509 | ) | 875 | |||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 636 | 138 | 13 | 527 | 1,858 | ||||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 795 | $ | 167 | $ | 14 | $ | 489 | $ | 1,872 |
VY® Invesco Comstock Portfolio - Initial Class | VY® Invesco Equity and Income Portfolio - Initial Class | VY® JPMorgan Mid Cap Value Portfolio - Initial Class | VY® Oppenheimer Global Portfolio - Initial Class | VY® Pioneer High Yield Portfolio - Initial Class | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 190 | $ | 186 | $ | 139 | $ | 120 | $ | 1,105 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 17 | 21 | 61 | 32 | 80 | ||||||||||||||||
Total expenses | 17 | 21 | 61 | 32 | 80 | ||||||||||||||||
Net investment income (loss) | 173 | 165 | 78 | 88 | 1,025 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 349 | (177 | ) | 262 | 87 | (860 | ) | ||||||||||||||
Capital gains distributions | — | 384 | 1,409 | 675 | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 349 | 207 | 1,671 | 762 | (860 | ) | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 615 | 871 | 318 | (1,007 | ) | 2,644 | |||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 964 | 1,078 | 1,989 | (245 | ) | 1,784 | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 1,137 | $ | 1,243 | $ | 2,067 | $ | (157 | ) | $ | 2,809 |
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | VY® Templeton Foreign Equity Portfolio - Initial Class | Voya Strategic Allocation Conservative Portfolio - Class I | Voya Strategic Allocation Growth Portfolio - Class I | Voya Strategic Allocation Moderate Portfolio - Class I | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 112 | $ | 396 | $ | 2 | $ | 6 | $ | 28 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 177 | 48 | — | 1 | — | ||||||||||||||||
Total expenses | 177 | 48 | — | 1 | — | ||||||||||||||||
Net investment income (loss) | (65 | ) | 348 | 2 | 5 | 28 | |||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 1,192 | 184 | (5 | ) | 9 | (10 | ) | ||||||||||||||
Capital gains distributions | 4,325 | — | — | — | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 5,517 | 184 | (5 | ) | 9 | (10 | ) | ||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | (3,105 | ) | (334 | ) | 5 | (3 | ) | 44 | |||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 2,412 | (150 | ) | — | 6 | 34 | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 2,347 | $ | 198 | $ | 2 | $ | 11 | $ | 62 |
Voya Growth and Income Portfolio - Class I | Voya Global Equity Portfolio - Class I | Voya Index Plus LargeCap Portfolio - Class I | Voya Index Plus MidCap Portfolio - Class I | Voya Index Plus SmallCap Portfolio - Class I | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 154 | $ | 305 | $ | 260 | $ | 111 | $ | 55 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 21 | 30 | 88 | 28 | 21 | ||||||||||||||||
Total expenses | 21 | 30 | 88 | 28 | 21 | ||||||||||||||||
Net investment income (loss) | 133 | 275 | 172 | 83 | 34 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 40 | (113 | ) | 586 | 295 | 527 | |||||||||||||||
Capital gains distributions | 617 | — | — | 1,031 | 180 | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 657 | (113 | ) | 586 | 1,326 | 707 | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | (86 | ) | 439 | 681 | 433 | 931 | |||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 571 | 326 | 1,267 | 1,759 | 1,638 | ||||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 704 | $ | 601 | $ | 1,439 | $ | 1,842 | $ | 1,672 |
Voya International Index Portfolio - Class S | Voya Russell™ Large Cap Growth Index Portfolio - Class I | Voya Russell™ Large Cap Index Portfolio - Class I | Voya Russell™ Large Cap Value Index Portfolio - Class I | Voya Russell™ Mid Cap Growth Index Portfolio - Class I | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 622 | $ | 524 | $ | 118 | $ | 108 | $ | 43 | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 130 | 227 | 15 | 27 | 16 | ||||||||||||||||
Total expenses | 130 | 227 | 15 | 27 | 16 | ||||||||||||||||
Net investment income (loss) | 492 | 297 | 103 | 81 | 27 | ||||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | 258 | 5,230 | 352 | 525 | (1 | ) | |||||||||||||||
Capital gains distributions | — | — | — | 100 | — | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 258 | 5,230 | 352 | 625 | (1 | ) | |||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | (783 | ) | (3,433 | ) | 157 | 170 | 223 | ||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | (525 | ) | 1,797 | 509 | 795 | 222 | |||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | (33 | ) | $ | 2,094 | $ | 612 | $ | 876 | $ | 249 |
Voya Russell™ Small Cap Index Portfolio - Class I | Voya Small Company Portfolio - Class S | Voya U.S. Bond Index Portfolio - Class I | Voya MidCap Opportunities Portfolio - Class I | Voya SmallCap Opportunities Portfolio - Class I | |||||||||||||||||
Net investment income (loss) | |||||||||||||||||||||
Investment Income: | |||||||||||||||||||||
Dividends | $ | 52 | $ | 18 | $ | 163 | $ | — | $ | — | |||||||||||
Expenses: | |||||||||||||||||||||
Mortality and expense risk charges | 15 | 43 | 20 | 5 | 26 | ||||||||||||||||
Total expenses | 15 | 43 | 20 | 5 | 26 | ||||||||||||||||
Net investment income (loss) | 37 | (25 | ) | 143 | (5 | ) | (26 | ) | |||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | |||||||||||||||||||||
Net realized gain (loss) on investments | (132 | ) | 361 | — | 38 | (19 | ) | ||||||||||||||
Capital gains distributions | 446 | 857 | 11 | 255 | 549 | ||||||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||||||
and capital gains distributions | 314 | 1,218 | 11 | 293 | 530 | ||||||||||||||||
Net unrealized appreciation | |||||||||||||||||||||
(depreciation) of investments | 516 | 1,408 | (1 | ) | (129 | ) | 270 | ||||||||||||||
Net realized and unrealized gain (loss) | |||||||||||||||||||||
on investments | 830 | 2,626 | 10 | 164 | 800 | ||||||||||||||||
Net increase (decrease) in net assets | |||||||||||||||||||||
resulting from operations | $ | 867 | $ | 2,601 | $ | 153 | $ | 159 | $ | 774 |
Invesco V.I. Core Equity Fund - Series I Shares | Growth Fund - Class 2 | Growth-Income Fund - Class 2 | International Fund - Class 2 | ||||||||||||||
Net assets at January 1, 2015 | $ | 6,455 | $ | 54,118 | $ | 34,387 | $ | 46,977 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 27 | 180 | 349 | 610 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 843 | 15,945 | 5,822 | 3,973 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,249 | ) | (12,639 | ) | (5,767 | ) | (7,022 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (379 | ) | 3,486 | 404 | (2,439 | ) | |||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | — | 3,102 | 2,727 | 2,743 | |||||||||||||
Surrenders and withdrawals | (268 | ) | (3,012 | ) | (1,359 | ) | (2,366 | ) | |||||||||
Cost of insurance and administrative charges | (221 | ) | (2,509 | ) | (1,720 | ) | (1,969 | ) | |||||||||
Benefit payments | — | (4 | ) | (4 | ) | (2 | ) | ||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (98 | ) | (2,133 | ) | (2,105 | ) | 3,120 | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (587 | ) | (4,556 | ) | (2,461 | ) | 1,526 | ||||||||||
Total increase (decrease) in net assets | (966 | ) | (1,070 | ) | (2,057 | ) | (913 | ) | |||||||||
Net assets at December 31, 2015 | 5,489 | 53,048 | 32,330 | 46,064 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 5 | 271 | 392 | 518 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 548 | 7,238 | 4,771 | 4,112 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (58 | ) | (2,923 | ) | (1,793 | ) | (3,064 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 495 | 4,586 | 3,370 | 1,566 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | — | 2,648 | 2,782 | 2,558 | |||||||||||||
Surrenders and withdrawals | (220 | ) | (2,235 | ) | (1,326 | ) | (1,808 | ) | |||||||||
Cost of insurance and administrative charges | (221 | ) | (2,396 | ) | (1,662 | ) | (1,963 | ) | |||||||||
Benefit payments | — | 1 | 1 | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (156 | ) | (2,093 | ) | (1,887 | ) | (365 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (597 | ) | (4,075 | ) | (2,092 | ) | (1,578 | ) | |||||||||
Total increase (decrease) in net assets | (102 | ) | 511 | 1,278 | (12 | ) | |||||||||||
Net assets at December 31, 2016 | $ | 5,387 | $ | 53,559 | $ | 33,608 | $ | 46,052 |
BlackRock Global Allocation V.I. Fund - Class III | Fidelity® VIP Equity-Income Portfolio - Service Class | Fidelity® VIP Contrafund® Portfolio - Service Class | Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 14,691 | $ | 6,979 | $ | 32,694 | $ | 255 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 118 | 169 | 207 | 5 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 855 | 788 | 4,740 | 1 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (971 | ) | (1,224 | ) | (4,788 | ) | (9 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 2 | (267 | ) | 159 | (3 | ) | |||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 2,361 | 245 | 2,000 | — | |||||||||||||
Surrenders and withdrawals | (629 | ) | (104 | ) | (886 | ) | (5 | ) | |||||||||
Cost of insurance and administrative charges | (789 | ) | (246 | ) | (1,191 | ) | (11 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (4,523 | ) | (901 | ) | (2,024 | ) | (4 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (3,580 | ) | (1,006 | ) | (2,101 | ) | (20 | ) | |||||||||
Total increase (decrease) in net assets | (3,578 | ) | (1,273 | ) | (1,942 | ) | (23 | ) | |||||||||
Net assets at December 31, 2015 | 11,113 | 5,706 | 30,752 | 232 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 117 | 121 | 106 | 3 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | (424 | ) | 355 | 4,312 | 4 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 684 | 510 | (2,560 | ) | 3 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 377 | 986 | 1,858 | 10 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 1,973 | 260 | 1,646 | — | |||||||||||||
Surrenders and withdrawals | (725 | ) | (169 | ) | (881 | ) | (50 | ) | |||||||||
Cost of insurance and administrative charges | (667 | ) | (252 | ) | (1,197 | ) | (9 | ) | |||||||||
Benefit payments | — | — | (1 | ) | — | ||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (1,080 | ) | 43 | (6,271 | ) | — | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (499 | ) | (118 | ) | (6,704 | ) | (59 | ) | |||||||||
Total increase (decrease) in net assets | (122 | ) | 868 | (4,846 | ) | (49 | ) | ||||||||||
Net assets at December 31, 2016 | $ | 10,991 | $ | 6,574 | $ | 25,906 | $ | 183 |
M Capital Appreciation Fund | M International Equity Fund | M Large Cap Growth Fund | M Large Cap Value Fund | ||||||||||||||
Net assets at January 1, 2015 | $ | 9,101 | $ | 10,029 | $ | 4,545 | $ | 2,323 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | (65 | ) | 90 | (16 | ) | 35 | |||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1,110 | 273 | 1,245 | 466 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,700 | ) | (584 | ) | (1,022 | ) | (591 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (655 | ) | (221 | ) | 207 | (90 | ) | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 43 | 88 | 50 | 47 | |||||||||||||
Surrenders and withdrawals | (21 | ) | (80 | ) | (35 | ) | (35 | ) | |||||||||
Cost of insurance and administrative charges | (139 | ) | (182 | ) | (104 | ) | (77 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 6 | (1,226 | ) | 266 | 1,202 | ||||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (111 | ) | (1,400 | ) | 177 | 1,137 | |||||||||||
Total increase (decrease) in net assets | (766 | ) | (1,621 | ) | 384 | 1,047 | |||||||||||
Net assets at December 31, 2015 | 8,335 | 8,408 | 4,929 | 3,370 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | (29 | ) | 39 | 39 | 34 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 367 | (52 | ) | 154 | (112 | ) | |||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 1,304 | (51 | ) | (387 | ) | 239 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 1,642 | (64 | ) | (194 | ) | 161 | |||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 50 | 74 | 71 | 65 | |||||||||||||
Surrenders and withdrawals | (41 | ) | (254 | ) | (1,056 | ) | (639 | ) | |||||||||
Cost of insurance and administrative charges | (162 | ) | (199 | ) | (123 | ) | (89 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (329 | ) | 310 | (671 | ) | (398 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (482 | ) | (69 | ) | (1,779 | ) | (1,061 | ) | |||||||||
Total increase (decrease) in net assets | 1,160 | (133 | ) | (1,973 | ) | (900 | ) | ||||||||||
Net assets at December 31, 2016 | $ | 9,495 | $ | 8,275 | $ | 2,956 | $ | 2,470 |
Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | Van Eck VIP Global Hard Assets Fund - Initial Class | Voya Balanced Portfolio - Class I | Voya Intermediate Bond Portfolio - Class I | ||||||||||||||
Net assets at January 1, 2015 | $ | 1,596 | $ | 1,836 | $ | 11,416 | $ | 71,653 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 5 | (9 | ) | 171 | 2,309 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 230 | (261 | ) | 713 | 541 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (244 | ) | (195 | ) | (1,100 | ) | (2,645 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (9 | ) | (465 | ) | (216 | ) | 205 | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 145 | — | 622 | 3,929 | |||||||||||||
Surrenders and withdrawals | (100 | ) | (67 | ) | (882 | ) | (3,223 | ) | |||||||||
Cost of insurance and administrative charges | (83 | ) | (49 | ) | (655 | ) | (3,773 | ) | |||||||||
Benefit payments | — | — | — | (2 | ) | ||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (40 | ) | (421 | ) | (347 | ) | 3,806 | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (78 | ) | (537 | ) | (1,262 | ) | 737 | ||||||||||
Total increase (decrease) in net assets | (87 | ) | (1,002 | ) | (1,478 | ) | 942 | ||||||||||
Net assets at December 31, 2015 | 1,509 | 834 | 9,938 | 72,595 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 6 | (1 | ) | 135 | 1,434 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 110 | (179 | ) | 358 | 629 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 14 | 499 | 212 | 842 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 130 | 319 | 705 | 2,905 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 119 | — | 562 | 3,838 | |||||||||||||
Surrenders and withdrawals | (25 | ) | (70 | ) | (234 | ) | (3,268 | ) | |||||||||
Cost of insurance and administrative charges | (78 | ) | (35 | ) | (661 | ) | (3,919 | ) | |||||||||
Benefit payments | — | — | — | (4 | ) | ||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (134 | ) | (152 | ) | (297 | ) | (2,240 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (118 | ) | (257 | ) | (630 | ) | (5,593 | ) | |||||||||
Total increase (decrease) in net assets | 12 | 62 | 75 | (2,688 | ) | ||||||||||||
Net assets at December 31, 2016 | $ | 1,521 | $ | 896 | $ | 10,013 | $ | 69,907 |
Voya Global Perspectives® Portfolio - Class I | Voya Government Liquid Assets Portfolio - Class I | Voya Government Liquid Assets Portfolio - Service Class | Voya Large Cap Growth Portfolio - Institutional Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 372 | $ | 33,736 | $ | 28,930 | $ | 45,236 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 11 | (253 | ) | — | 39 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 18 | 3 | 2 | 8,584 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (44 | ) | — | — | (6,125 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | (15 | ) | (250 | ) | 2 | 2,498 | |||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 82 | 7,510 | 5,770 | 2,280 | |||||||||||||
Surrenders and withdrawals | (1 | ) | (4,282 | ) | (7,252 | ) | (2,293 | ) | |||||||||
Cost of insurance and administrative charges | (30 | ) | (8,059 | ) | (2,624 | ) | (2,251 | ) | |||||||||
Benefit payments | — | (2,068 | ) | (1,285 | ) | — | |||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (83 | ) | 10,475 | (1,493 | ) | (4,908 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (32 | ) | 3,576 | (6,884 | ) | (7,172 | ) | ||||||||||
Total increase (decrease) in net assets | (47 | ) | 3,326 | (6,882 | ) | (4,674 | ) | ||||||||||
Net assets at December 31, 2015 | 325 | 37,062 | 22,048 | 40,562 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 10 | (202 | ) | — | 30 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | (14 | ) | 26 | 17 | 6,275 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 76 | — | — | (5,004 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 72 | (176 | ) | 17 | 1,301 | ||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 64 | 7,111 | 4,095 | 2,210 | |||||||||||||
Surrenders and withdrawals | — | (11,859 | ) | (2,848 | ) | (1,225 | ) | ||||||||||
Cost of insurance and administrative charges | (53 | ) | (7,652 | ) | (2,538 | ) | (2,080 | ) | |||||||||
Benefit payments | — | (5,270 | ) | (4,537 | ) | (2 | ) | ||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 7,916 | 7,207 | 1,730 | (769 | ) | ||||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 7,927 | (10,463 | ) | (4,098 | ) | (1,866 | ) | ||||||||||
Total increase (decrease) in net assets | 7,999 | (10,639 | ) | (4,081 | ) | (565 | ) | ||||||||||
Net assets at December 31, 2016 | $ | 8,324 | $ | 26,423 | $ | 17,967 | $ | 39,997 |
Voya Large Cap Value Portfolio - Institutional Class | Voya Limited Maturity Bond Portfolio - Service Class | Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | Voya Retirement Growth Portfolio - Institutional Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 18,622 | $ | 22,235 | $ | 2,696 | $ | 32,443 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 237 | 157 | 8 | 644 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1,351 | (79 | ) | 462 | 1,051 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (2,379 | ) | (41 | ) | (485 | ) | (2,284 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (791 | ) | 37 | (15 | ) | (589 | ) | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 1,048 | 1,289 | — | 2,681 | |||||||||||||
Surrenders and withdrawals | (704 | ) | (1,085 | ) | — | (1,573 | ) | ||||||||||
Cost of insurance and administrative charges | (837 | ) | (1,128 | ) | — | (1,624 | ) | ||||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (2,194 | ) | 3,400 | (929 | ) | (422 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (2,687 | ) | 2,476 | (929 | ) | (938 | ) | ||||||||||
Total increase (decrease) in net assets | (3,478 | ) | 2,513 | (944 | ) | (1,527 | ) | ||||||||||
Net assets at December 31, 2015 | 15,144 | 24,748 | 1,752 | 30,916 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 319 | 260 | 29 | 771 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 321 | 216 | 66 | 2,538 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 1,284 | (284 | ) | 48 | (1,042 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | 1,924 | 192 | 143 | 2,267 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 969 | 1,276 | — | 2,366 | |||||||||||||
Surrenders and withdrawals | (609 | ) | (708 | ) | — | (2,534 | ) | ||||||||||
Cost of insurance and administrative charges | (810 | ) | (1,204 | ) | — | (1,429 | ) | ||||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (565 | ) | 9,229 | (51 | ) | (570 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (1,015 | ) | 8,593 | (51 | ) | (2,167 | ) | ||||||||||
Total increase (decrease) in net assets | 909 | 8,785 | 92 | 100 | |||||||||||||
Net assets at December 31, 2016 | $ | 16,053 | $ | 33,533 | $ | 1,844 | $ | 31,016 |
Voya Retirement Moderate Growth Portfolio - Institutional Class | Voya Retirement Moderate Portfolio - Institutional Class | Voya U.S. Stock Index Portfolio - Institutional Class | VY® Clarion Global Real Estate Portfolio - Service Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 16,488 | $ | 9,624 | $ | 165,273 | $ | 11,810 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 254 | 67 | 1,999 | 301 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1,409 | 855 | 14,922 | 686 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,829 | ) | (1,045 | ) | (16,000 | ) | (1,258 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (166 | ) | (123 | ) | 921 | (271 | ) | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 956 | 428 | 4,547 | 594 | |||||||||||||
Surrenders and withdrawals | (542 | ) | (1,620 | ) | (4,347 | ) | (460 | ) | |||||||||
Cost of insurance and administrative charges | (686 | ) | (352 | ) | (6,322 | ) | (587 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (1,606 | ) | 208 | (2,673 | ) | 677 | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (1,878 | ) | (1,336 | ) | (8,795 | ) | 224 | ||||||||||
Total increase (decrease) in net assets | (2,044 | ) | (1,459 | ) | (7,874 | ) | (47 | ) | |||||||||
Net assets at December 31, 2015 | 14,444 | 8,165 | 157,399 | 11,763 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 334 | 153 | 2,361 | 81 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1,576 | 416 | 11,287 | 343 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (955 | ) | (118 | ) | 3,471 | (391 | ) | ||||||||||
Net increase (decrease) in net assets resulting from operations | 955 | 451 | 17,119 | 33 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 833 | 469 | 4,637 | 764 | |||||||||||||
Surrenders and withdrawals | (890 | ) | (211 | ) | (3,302 | ) | (461 | ) | |||||||||
Cost of insurance and administrative charges | (684 | ) | (392 | ) | (6,892 | ) | (600 | ) | |||||||||
Benefit payments | — | (1 | ) | (3 | ) | — | |||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 160 | (453 | ) | (1,139 | ) | (937 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (581 | ) | (588 | ) | (6,699 | ) | (1,234 | ) | |||||||||
Total increase (decrease) in net assets | 374 | (137 | ) | 10,420 | (1,201 | ) | |||||||||||
Net assets at December 31, 2016 | $ | 14,818 | $ | 8,028 | $ | 167,819 | $ | 10,562 |
VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | VY® Invesco Growth and Income Portfolio - Service Class | VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class | VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 16,143 | $ | 11,311 | $ | 27,299 | $ | 31,001 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | (2 | ) | 328 | 280 | (39 | ) | |||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 3,558 | 2,109 | 1,037 | 5,486 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (3,882 | ) | (2,787 | ) | (5,858 | ) | (6,594 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (326 | ) | (350 | ) | (4,541 | ) | (1,147 | ) | |||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 789 | 676 | 2,007 | 1,224 | |||||||||||||
Surrenders and withdrawals | (756 | ) | (471 | ) | (931 | ) | (1,459 | ) | |||||||||
Cost of insurance and administrative charges | (793 | ) | (375 | ) | (1,097 | ) | (1,209 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 906 | (243 | ) | 2,224 | 570 | ||||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 146 | (413 | ) | 2,203 | (874 | ) | |||||||||||
Total increase (decrease) in net assets | (180 | ) | (763 | ) | (2,338 | ) | (2,021 | ) | |||||||||
Net assets at December 31, 2015 | 15,963 | 10,548 | 24,961 | 28,980 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 51 | 236 | 311 | 63 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1,496 | 1,388 | (2,846 | ) | 4,084 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 63 | 545 | 6,060 | 1,654 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,610 | 2,169 | 3,525 | 5,801 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 689 | 724 | 2,157 | 1,246 | |||||||||||||
Surrenders and withdrawals | (504 | ) | (318 | ) | (723 | ) | (997 | ) | |||||||||
Cost of insurance and administrative charges | (793 | ) | (420 | ) | (1,245 | ) | (1,236 | ) | |||||||||
Benefit payments | (3 | ) | — | (25 | ) | (9 | ) | ||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (2,131 | ) | 648 | (2,555 | ) | (1,727 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (2,742 | ) | 634 | (2,391 | ) | (2,723 | ) | ||||||||||
Total increase (decrease) in net assets | (1,132 | ) | 2,803 | 1,134 | 3,078 | ||||||||||||
Net assets at December 31, 2016 | $ | 14,831 | $ | 13,351 | $ | 26,095 | $ | 32,058 |
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | VY® T. Rowe Price Equity Income Portfolio - Institutional Class | VY® T. Rowe Price International Stock Portfolio - Institutional Class | Voya Global Bond Portfolio - Service Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 73,165 | $ | 31,600 | $ | 9,315 | $ | 16,073 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 880 | 536 | 83 | (65 | ) | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 14,371 | 4,870 | 655 | (292 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (11,477 | ) | (7,478 | ) | (906 | ) | (389 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 3,774 | (2,072 | ) | (168 | ) | (746 | ) | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 6,084 | 1,278 | — | 864 | |||||||||||||
Surrenders and withdrawals | (3,509 | ) | (1,677 | ) | — | (691 | ) | ||||||||||
Cost of insurance and administrative charges | (4,703 | ) | (1,209 | ) | — | (639 | ) | ||||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (1,936 | ) | (2,108 | ) | (499 | ) | (542 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (4,064 | ) | (3,716 | ) | (499 | ) | (1,008 | ) | |||||||||
Total increase (decrease) in net assets | (290 | ) | (5,788 | ) | (667 | ) | (1,754 | ) | |||||||||
Net assets at December 31, 2015 | 72,875 | 25,812 | 8,648 | 14,319 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 875 | 573 | 122 | 159 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 10,131 | 3,179 | 139 | (267 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (5,710 | ) | 861 | (85 | ) | 903 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 5,296 | 4,613 | 176 | 795 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 6,045 | 1,238 | — | 776 | |||||||||||||
Surrenders and withdrawals | (2,480 | ) | (891 | ) | — | (500 | ) | ||||||||||
Cost of insurance and administrative charges | (4,855 | ) | (1,148 | ) | — | (640 | ) | ||||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (7,723 | ) | (740 | ) | (305 | ) | (507 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (9,013 | ) | (1,541 | ) | (305 | ) | (871 | ) | |||||||||
Total increase (decrease) in net assets | (3,717 | ) | 3,072 | (129 | ) | (76 | ) | ||||||||||
Net assets at December 31, 2016 | $ | 69,158 | $ | 28,884 | $ | 8,519 | $ | 14,243 |
Voya Solution Moderately Aggressive Portfolio - Initial Class | VY® American Century Small-Mid Cap Value Portfolio - Initial Class | VY® Baron Growth Portfolio - Initial Class | VY® Columbia Small Cap Value II Portfolio - Initial Class | ||||||||||||||
Net assets at January 1, 2015 | $ | — | $ | 83 | $ | 15,064 | $ | 8,922 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | (3 | ) | 1 | 25 | 20 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | (27 | ) | 23 | 1,930 | 874 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (92 | ) | (25 | ) | (2,682 | ) | (1,114 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (122 | ) | (1 | ) | (727 | ) | (220 | ) | |||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 128 | — | 712 | 343 | |||||||||||||
Surrenders and withdrawals | (15 | ) | (15 | ) | (615 | ) | (541 | ) | |||||||||
Cost of insurance and administrative charges | (74 | ) | (4 | ) | (545 | ) | (421 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 2,695 | (1 | ) | (1,032 | ) | (277 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 2,734 | (20 | ) | (1,480 | ) | (896 | ) | ||||||||||
Total increase (decrease) in net assets | 2,612 | (21 | ) | (2,207 | ) | (1,116 | ) | ||||||||||
Net assets at December 31, 2015 | 2,612 | 62 | 12,857 | 7,806 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 29 | 1 | (38 | ) | 14 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 30 | 10 | 2,036 | 983 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 108 | 3 | (1,509 | ) | 875 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 167 | 14 | 489 | 1,872 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 350 | — | 683 | 360 | |||||||||||||
Surrenders and withdrawals | (7 | ) | (9 | ) | (538 | ) | (330 | ) | |||||||||
Cost of insurance and administrative charges | (179 | ) | (4 | ) | (518 | ) | (442 | ) | |||||||||
Benefit payments | — | — | — | (9 | ) | ||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 78 | — | (2,975 | ) | 907 | ||||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 242 | (13 | ) | (3,348 | ) | 486 | |||||||||||
Total increase (decrease) in net assets | 409 | 1 | (2,859 | ) | 2,358 | ||||||||||||
Net assets at December 31, 2016 | $ | 3,021 | $ | 63 | $ | 9,998 | $ | 10,164 |
VY® Invesco Comstock Portfolio - Initial Class | VY® Invesco Equity and Income Portfolio - Initial Class | VY® JPMorgan Mid Cap Value Portfolio - Initial Class | VY® Oppenheimer Global Portfolio - Initial Class | ||||||||||||||
Net assets at January 1, 2015 | $ | 8,767 | $ | 9,655 | $ | 21,842 | $ | 9,517 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 173 | 193 | 73 | 153 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 659 | 898 | 4,402 | 1,590 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,293 | ) | (1,300 | ) | (4,933 | ) | (1,614 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (461 | ) | (209 | ) | (458 | ) | 129 | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 576 | 750 | (1 | ) | 780 | ||||||||||||
Surrenders and withdrawals | (669 | ) | (537 | ) | (1,099 | ) | (285 | ) | |||||||||
Cost of insurance and administrative charges | (379 | ) | (543 | ) | (621 | ) | (493 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (779 | ) | 156 | (3,691 | ) | 2,346 | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (1,251 | ) | (174 | ) | (5,412 | ) | 2,348 | ||||||||||
Total increase (decrease) in net assets | (1,712 | ) | (383 | ) | (5,870 | ) | 2,477 | ||||||||||
Net assets at December 31, 2015 | 7,055 | 9,272 | 15,972 | 11,994 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 173 | 165 | 78 | 88 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 349 | 207 | 1,671 | 762 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 615 | 871 | 318 | (1,007 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,137 | 1,243 | 2,067 | (157 | ) | ||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 418 | 644 | 2 | 730 | |||||||||||||
Surrenders and withdrawals | (294 | ) | (295 | ) | (496 | ) | (957 | ) | |||||||||
Cost of insurance and administrative charges | (378 | ) | (487 | ) | (481 | ) | (422 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (380 | ) | (1,046 | ) | (1,246 | ) | (1,077 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (634 | ) | (1,184 | ) | (2,221 | ) | (1,726 | ) | |||||||||
Total increase (decrease) in net assets | 503 | 59 | (154 | ) | (1,883 | ) | |||||||||||
Net assets at December 31, 2016 | $ | 7,558 | $ | 9,331 | $ | 15,818 | $ | 10,111 |
VY® Pioneer High Yield Portfolio - Initial Class | VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | VY® Templeton Foreign Equity Portfolio - Initial Class | Voya Strategic Allocation Conservative Portfolio - Class I | ||||||||||||||
Net assets at January 1, 2015 | $ | 23,734 | $ | 36,761 | $ | 12,586 | $ | 103 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 1,037 | (193 | ) | 441 | 2 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | (291 | ) | 8,768 | 402 | — | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,653 | ) | (8,089 | ) | (1,247 | ) | (3 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (907 | ) | 486 | (404 | ) | (1 | ) | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 836 | 1,361 | 752 | — | |||||||||||||
Surrenders and withdrawals | (1,953 | ) | (1,624 | ) | (331 | ) | — | ||||||||||
Cost of insurance and administrative charges | (1,161 | ) | (1,659 | ) | (630 | ) | (3 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (2,878 | ) | 2,011 | (1,008 | ) | — | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (5,156 | ) | 89 | (1,217 | ) | (3 | ) | ||||||||||
Total increase (decrease) in net assets | (6,063 | ) | 575 | (1,621 | ) | (4 | ) | ||||||||||
Net assets at December 31, 2015 | 17,671 | 37,336 | 10,965 | 99 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 1,025 | (65 | ) | 348 | 2 | ||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | (860 | ) | 5,517 | 184 | (5 | ) | |||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 2,644 | (3,105 | ) | (334 | ) | 5 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 2,809 | 2,347 | 198 | 2 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 1,705 | 1,282 | 904 | — | |||||||||||||
Surrenders and withdrawals | (1,458 | ) | (1,127 | ) | (535 | ) | (35 | ) | |||||||||
Cost of insurance and administrative charges | (1,227 | ) | (1,681 | ) | (590 | ) | (2 | ) | |||||||||
Benefit payments | — | (1 | ) | — | — | ||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 4,121 | (402 | ) | 205 | (2 | ) | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 3,141 | (1,929 | ) | (16 | ) | (39 | ) | ||||||||||
Total increase (decrease) in net assets | 5,950 | 418 | 182 | (37 | ) | ||||||||||||
Net assets at December 31, 2016 | $ | 23,621 | $ | 37,754 | $ | 11,147 | $ | 62 |
Voya Strategic Allocation Growth Portfolio - Class I | Voya Strategic Allocation Moderate Portfolio - Class I | Voya Growth and Income Portfolio - Class I | Voya Global Equity Portfolio - Class I | ||||||||||||||
Net assets at January 1, 2015 | $ | 308 | $ | 1,329 | $ | 9,287 | $ | — | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 7 | 35 | 132 | 38 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1 | (19 | ) | 725 | (52 | ) | |||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (12 | ) | (21 | ) | (975 | ) | (678 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (4 | ) | (5 | ) | (118 | ) | (692 | ) | |||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | — | — | 293 | 751 | |||||||||||||
Surrenders and withdrawals | (7 | ) | (71 | ) | (896 | ) | (303 | ) | |||||||||
Cost of insurance and administrative charges | (10 | ) | (105 | ) | (325 | ) | (588 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (6 | ) | (1 | ) | (950 | ) | 12,112 | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (23 | ) | (177 | ) | (1,878 | ) | 11,972 | ||||||||||
Total increase (decrease) in net assets | (27 | ) | (182 | ) | (1,996 | ) | 11,280 | ||||||||||
Net assets at December 31, 2015 | 281 | 1,147 | 7,291 | 11,280 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 5 | 28 | 133 | 275 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 9 | (10 | ) | 657 | (113 | ) | |||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (3 | ) | 44 | (86 | ) | 439 | |||||||||||
Net increase (decrease) in net assets resulting from operations | 11 | 62 | 704 | 601 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | — | — | 428 | 1,022 | |||||||||||||
Surrenders and withdrawals | (42 | ) | (62 | ) | (128 | ) | (544 | ) | |||||||||
Cost of insurance and administrative charges | (7 | ) | (116 | ) | (303 | ) | (815 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (1 | ) | (2 | ) | (160 | ) | (363 | ) | |||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (50 | ) | (180 | ) | (163 | ) | (700 | ) | |||||||||
Total increase (decrease) in net assets | (39 | ) | (118 | ) | 541 | (99 | ) | ||||||||||
Net assets at December 31, 2016 | $ | 242 | $ | 1,029 | $ | 7,832 | $ | 11,181 |
Voya Index Plus LargeCap Portfolio - Class I | Voya Index Plus MidCap Portfolio - Class I | Voya Index Plus SmallCap Portfolio - Class I | Voya International Index Portfolio - Class S | ||||||||||||||
Net assets at January 1, 2015 | $ | 17,445 | $ | 10,511 | $ | 9,093 | $ | 21,322 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 163 | 70 | 51 | 471 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 1,092 | 2,112 | 1,197 | 392 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,188 | ) | (2,388 | ) | (1,487 | ) | (1,371 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 67 | (206 | ) | (239 | ) | (508 | ) | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 358 | 561 | 307 | 919 | |||||||||||||
Surrenders and withdrawals | (1,013 | ) | (635 | ) | (999 | ) | (835 | ) | |||||||||
Cost of insurance and administrative charges | (508 | ) | (469 | ) | (342 | ) | (1,030 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (1,084 | ) | 74 | (1,619 | ) | 3,017 | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (2,247 | ) | (469 | ) | (2,653 | ) | 2,071 | ||||||||||
Total increase (decrease) in net assets | (2,180 | ) | (675 | ) | (2,892 | ) | 1,563 | ||||||||||
Net assets at December 31, 2015 | 15,265 | 9,836 | 6,201 | 22,885 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 172 | 83 | 34 | 492 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 586 | 1,326 | 707 | 258 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 681 | 433 | 931 | (783 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,439 | 1,842 | 1,672 | (33 | ) | ||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 380 | 626 | 266 | 1,117 | |||||||||||||
Surrenders and withdrawals | (267 | ) | (352 | ) | (290 | ) | (752 | ) | |||||||||
Cost of insurance and administrative charges | (499 | ) | (478 | ) | (275 | ) | (1,071 | ) | |||||||||
Benefit payments | — | (3 | ) | (7 | ) | (1 | ) | ||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (54 | ) | 1,131 | 1,118 | (589 | ) | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (440 | ) | 924 | 812 | (1,296 | ) | |||||||||||
Total increase (decrease) in net assets | 999 | 2,766 | 2,484 | (1,329 | ) | ||||||||||||
Net assets at December 31, 2016 | $ | 16,264 | $ | 12,602 | $ | 8,685 | $ | 21,556 |
Voya Russell™ Large Cap Growth Index Portfolio - Class I | Voya Russell™ Large Cap Index Portfolio - Class I | Voya Russell™ Large Cap Value Index Portfolio - Class I | Voya Russell™ Mid Cap Growth Index Portfolio - Class I | ||||||||||||||
Net assets at January 1, 2015 | $ | 41,042 | $ | 5,216 | $ | 6,376 | $ | 4,041 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 243 | 86 | 72 | 27 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 3,791 | 421 | 434 | 566 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (1,232 | ) | (418 | ) | (746 | ) | (635 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | 2,802 | 89 | (240 | ) | (42 | ) | |||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 2,055 | 235 | 364 | 303 | |||||||||||||
Surrenders and withdrawals | (2,179 | ) | (202 | ) | (214 | ) | (232 | ) | |||||||||
Cost of insurance and administrative charges | (2,332 | ) | (272 | ) | (282 | ) | (227 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 294 | 1,037 | (297 | ) | 979 | ||||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (2,162 | ) | 798 | (429 | ) | 823 | |||||||||||
Total increase (decrease) in net assets | 640 | 887 | (669 | ) | 781 | ||||||||||||
Net assets at December 31, 2015 | 41,682 | 6,103 | 5,707 | 4,822 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 297 | 103 | 81 | 27 | |||||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 5,230 | 352 | 625 | (1 | ) | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (3,433 | ) | 157 | 170 | 223 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | 2,094 | 612 | 876 | 249 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 2,339 | 253 | 254 | 328 | |||||||||||||
Surrenders and withdrawals | (1,604 | ) | (311 | ) | (333 | ) | (103 | ) | |||||||||
Cost of insurance and administrative charges | (2,449 | ) | (215 | ) | (295 | ) | (213 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | (5,966 | ) | (544 | ) | 435 | (361 | ) | ||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | (7,680 | ) | (817 | ) | 61 | (349 | ) | ||||||||||
Total increase (decrease) in net assets | (5,586 | ) | (205 | ) | 937 | (100 | ) | ||||||||||
Net assets at December 31, 2016 | $ | 36,096 | $ | 5,898 | $ | 6,644 | $ | 4,722 |
Voya Russell™ Small Cap Index Portfolio - Class I | Voya Small Company Portfolio - Class S | Voya U.S. Bond Index Portfolio - Class I | Voya MidCap Opportunities Portfolio - Class I | ||||||||||||||
Net assets at January 1, 2015 | $ | 2,987 | $ | 10,692 | $ | 4,078 | $ | 2,800 | |||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 21 | (23 | ) | 109 | (5 | ) | |||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 316 | 2,023 | (37 | ) | 528 | ||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | (537 | ) | (2,112 | ) | (100 | ) | (498 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | (200 | ) | (112 | ) | (28 | ) | 25 | ||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 139 | 440 | 672 | — | |||||||||||||
Surrenders and withdrawals | (92 | ) | (289 | ) | (217 | ) | (222 | ) | |||||||||
Cost of insurance and administrative charges | (113 | ) | (436 | ) | (555 | ) | (84 | ) | |||||||||
Benefit payments | — | — | — | — | |||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 1,001 | (1,153 | ) | 2,299 | (150 | ) | |||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 935 | (1,438 | ) | 2,199 | (456 | ) | |||||||||||
Total increase (decrease) in net assets | 735 | (1,550 | ) | 2,171 | (431 | ) | |||||||||||
Net assets at December 31, 2015 | 3,722 | 9,142 | 6,249 | 2,369 | |||||||||||||
Increase (decrease) in net assets | |||||||||||||||||
Operations: | |||||||||||||||||
Net investment income (loss) | 37 | (25 | ) | 143 | (5 | ) | |||||||||||
Total realized gain (loss) on investments | |||||||||||||||||
and capital gains distributions | 314 | 1,218 | 11 | 293 | |||||||||||||
Net unrealized appreciation (depreciation) | |||||||||||||||||
of investments | 516 | 1,408 | (1 | ) | (129 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | 867 | 2,601 | 153 | 159 | |||||||||||||
Changes from principal transactions: | |||||||||||||||||
Premiums | 333 | 372 | 902 | — | |||||||||||||
Surrenders and withdrawals | (356 | ) | (323 | ) | (1,298 | ) | (66 | ) | |||||||||
Cost of insurance and administrative charges | (171 | ) | (427 | ) | (780 | ) | (84 | ) | |||||||||
Benefit payments | — | — | (2 | ) | — | ||||||||||||
Transfers between Divisions | |||||||||||||||||
(including fixed account), net | 1,106 | 3,400 | 2,181 | (39 | ) | ||||||||||||
Increase (decrease) in net assets derived from | |||||||||||||||||
principal transactions | 912 | 3,022 | 1,003 | (189 | ) | ||||||||||||
Total increase (decrease) in net assets | 1,779 | 5,623 | 1,156 | (30 | ) | ||||||||||||
Net assets at December 31, 2016 | $ | 5,501 | $ | 14,765 | $ | 7,405 | $ | 2,339 |
Voya SmallCap Opportunities Portfolio - Class I | |||||
Net assets at January 1, 2015 | $ | 7,902 | |||
Increase (decrease) in net assets | |||||
Operations: | |||||
Net investment income (loss) | (35 | ) | |||
Total realized gain (loss) on investments | |||||
and capital gains distributions | 1,237 | ||||
Net unrealized appreciation (depreciation) | |||||
of investments | (1,315 | ) | |||
Net increase (decrease) in net assets resulting from operations | (113 | ) | |||
Changes from principal transactions: | |||||
Premiums | 245 | ||||
Surrenders and withdrawals | (447 | ) | |||
Cost of insurance and administrative charges | (242 | ) | |||
Benefit payments | — | ||||
Transfers between Divisions | |||||
(including fixed account), net | (873 | ) | |||
Increase (decrease) in net assets derived from | |||||
principal transactions | (1,317 | ) | |||
Total increase (decrease) in net assets | (1,430 | ) | |||
Net assets at December 31, 2015 | 6,472 | ||||
Increase (decrease) in net assets | |||||
Operations: | |||||
Net investment income (loss) | (26 | ) | |||
Total realized gain (loss) on investments | |||||
and capital gains distributions | 530 | ||||
Net unrealized appreciation (depreciation) | |||||
of investments | 270 | ||||
Net increase (decrease) in net assets resulting from operations | 774 | ||||
Changes from principal transactions: | |||||
Premiums | 332 | ||||
Surrenders and withdrawals | (488 | ) | |||
Cost of insurance and administrative charges | (240 | ) | |||
Benefit payments | (7 | ) | |||
Transfers between Divisions | |||||
(including fixed account), net | 168 | ||||
Increase (decrease) in net assets derived from | |||||
principal transactions | (235 | ) | |||
Total increase (decrease) in net assets | 539 | ||||
Net assets at December 31, 2016 | $ | 7,011 |
1. | Organization |
AIM Variable Insurance Funds: | |
Invesco V.I. Core Equity Fund - Series I Shares | |
American Funds Insurance Series®: | |
Growth Fund - Class 2 | |
Growth-Income Fund - Class 2 | |
International Fund - Class 2 | |
BlackRock Variable Series Funds, Inc.: | |
BlackRock Global Allocation V.I. Fund - Class III | |
Fidelity® Variable Insurance Products: | |
Fidelity® VIP Equity-Income Portfolio - Service Class | |
Fidelity® Variable Insurance Products II: | |
Fidelity® VIP Contrafund® Portfolio - Service Class | |
Fidelity® Variable Insurance Products V: | |
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | |
M Fund, Inc.: | |
M Capital Appreciation Fund | |
M International Equity Fund | |
M Large Cap Growth Fund | |
M Large Cap Value Fund | |
Neuberger Berman Advisers Management Trust: | |
Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | |
Van Eck VIP Trust: | |
Van Eck VIP Global Hard Assets Fund - Initial Class | |
Voya Balanced Portfolio, Inc.: | |
Voya Balanced Portfolio - Class I | |
Voya Intermediate Bond Portfolio: | |
Voya Intermediate Bond Portfolio - Class I | |
Voya Investors Trust: | |
Voya Global Perspectives® Portfolio - Class I | |
Voya Government Liquid Assets Portfolio - Class I | |
Voya Government Liquid Assets Portfolio - Service Class | |
Voya Large Cap Growth Portfolio - Institutional Class | |
Voya Large Cap Value Portfolio - Institutional Class | |
Voya Limited Maturity Bond Portfolio - Service Class | |
Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | |
Voya Retirement Growth Portfolio - Institutional Class | |
Voya Retirement Moderate Growth Portfolio - Institutional Class | |
Voya Retirement Moderate Portfolio - Institutional Class | |
Voya U.S. Stock Index Portfolio - Institutional Class | |
VY® Clarion Global Real Estate Portfolio - Service Class | |
VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | |
VY® Invesco Growth and Income Portfolio - Service Class | |
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class |
Voya Investors Trust (continued): | |
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | |
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | |
VY® T. Rowe Price Equity Income Portfolio - Institutional Class | |
VY® T. Rowe Price International Stock Portfolio - Institutional Class | |
Voya Partners, Inc.: | |
Voya Global Bond Portfolio - Service Class | |
Voya Solution Moderately Aggressive Portfolio - Initial Class | |
VY® American Century Small-Mid Cap Value Portfolio - Initial Class | |
VY® Baron Growth Portfolio - Initial Class | |
VY® Columbia Small Cap Value II Portfolio - Initial Class | |
VY® Invesco Comstock Portfolio - Initial Class | |
VY® Invesco Equity and Income Portfolio - Initial Class | |
VY® JPMorgan Mid Cap Value Portfolio - Initial Class | |
VY® Oppenheimer Global Portfolio - Initial Class | |
VY® Pioneer High Yield Portfolio - Initial Class | |
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | |
VY® Templeton Foreign Equity Portfolio - Initial Class | |
Voya Strategic Allocation Portfolios, Inc.: | |
Voya Strategic Allocation Conservative Portfolio - Class I | |
Voya Strategic Allocation Growth Portfolio - Class I | |
Voya Strategic Allocation Moderate Portfolio - Class I | |
Voya Variable Funds: | |
Voya Growth and Income Portfolio - Class I | |
Voya Variable Portfolios, Inc.: | |
Voya Global Equity Portfolio - Class I | |
Voya Index Plus LargeCap Portfolio - Class I | |
Voya Index Plus MidCap Portfolio - Class I | |
Voya Index Plus SmallCap Portfolio - Class I | |
Voya International Index Portfolio - Class S | |
Voya Russell™ Large Cap Growth Index Portfolio - Class I | |
Voya Russell™ Large Cap Index Portfolio - Class I | |
Voya Russell™ Large Cap Value Index Portfolio - Class I | |
Voya Russell™ Mid Cap Growth Index Portfolio - Class I | |
Voya Russell™ Small Cap Index Portfolio - Class I | |
Voya Small Company Portfolio - Class S | |
Voya U.S. Bond Index Portfolio - Class I | |
Voya Variable Products Trust: | |
Voya MidCap Opportunities Portfolio - Class I | |
Voya SmallCap Opportunities Portfolio - Class I | |
Current Name | |
Voya Investors Trust: | |
Voya Government Liquid Assets Portfolio - Class I | |
Voya Government Liquid Assets Portfolio - Service Class | |
Voya Variable Portfolios, Inc.: | |
Voya Global Equity Portfolio - Class I |
Former Name | |
Voya Investors Trust: | |
Voya Liquid Assets Portfolio - Initial Class | |
Voya Liquid Assets Portfolio - Service Class | |
Voya Variable Portfolios, Inc.: | |
Voya Global Value Advantage Portfolio - Class I |
2. | Significant Accounting Policies |
3. | Financial Instruments |
▪ | Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market. The Account defines an active market as a market in which transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis. |
▪ | Level 2 - Quoted prices in markets that are not active or valuation techniques that require inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: |
a) | Quoted prices for similar assets or liabilities in active markets; |
b) | Quoted prices for identical or similar assets or liabilities in non-active markets; |
c) | Inputs other than quoted market prices that are observable; and |
d) | Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
▪ | Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. |
4. | Charges and Fees |
5. | Related Party Transactions |
6. | Purchases and Sales of Investment Securities |
Purchases | Sales | |||||||
(Dollars in thousands) | ||||||||
AIM Variable Insurance Funds: | ||||||||
Invesco V.I. Core Equity Fund - Series I Shares | $ | 432 | $ | 661 | ||||
American Funds Insurance Series®: | ||||||||
Growth Fund - Class 2 | 6,974 | 6,108 | ||||||
Growth-Income Fund - Class 2 | 5,854 | 4,064 | ||||||
International Fund - Class 2 | 8,233 | 5,416 | ||||||
BlackRock Variable Series Funds, Inc.: | ||||||||
BlackRock Global Allocation V.I. Fund - Class III | 2,410 | 2,793 | ||||||
Fidelity® Variable Insurance Products: | ||||||||
Fidelity® VIP Equity-Income Portfolio - Service Class | 1,121 | 749 |
Purchases | Sales | |||||||
(Dollars in thousands) | ||||||||
Fidelity® Variable Insurance Products II: | ||||||||
Fidelity® VIP Contrafund® Portfolio - Service Class | $ | 4,138 | $ | 8,333 | ||||
Fidelity® Variable Insurance Products V: | ||||||||
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | 5 | 60 | ||||||
M Fund, Inc.: | ||||||||
M Capital Appreciation Fund | 608 | 788 | ||||||
M International Equity Fund | 737 | 767 | ||||||
M Large Cap Growth Fund | 296 | 1,906 | ||||||
M Large Cap Value Fund | 208 | 1,234 | ||||||
Neuberger Berman Advisers Management Trust®: | ||||||||
Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | 135 | 194 | ||||||
Van Eck VIP Trust: | ||||||||
Van Eck VIP Global Hard Assets Fund - Initial Class | 4 | 262 | ||||||
Voya Balanced Portfolio, Inc.: | ||||||||
Voya Balanced Portfolio - Class I | 590 | 1,086 | ||||||
Voya Intermediate Bond Portfolio: | ||||||||
Voya Intermediate Bond Portfolio - Class I | 7,746 | 11,325 | ||||||
Voya Investors Trust: | ||||||||
Voya Global Perspectives® Portfolio - Class I | 8,131 | 195 | ||||||
Voya Government Liquid Assets Portfolio - Class I | 14,212 | 24,851 | ||||||
Voya Government Liquid Assets Portfolio - Service Class | 14,492 | 18,573 | ||||||
Voya Large Cap Growth Portfolio - Institutional Class | 7,604 | 4,396 | ||||||
Voya Large Cap Value Portfolio - Institutional Class | 1,722 | 1,954 | ||||||
Voya Limited Maturity Bond Portfolio - Service Class | 13,568 | 4,433 | ||||||
Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | 185 | 142 | ||||||
Voya Retirement Growth Portfolio - Institutional Class | 3,483 | 3,326 | ||||||
Voya Retirement Moderate Growth Portfolio - Institutional Class | 2,729 | 1,792 | ||||||
Voya Retirement Moderate Portfolio - Institutional Class | 1,341 | 1,389 | ||||||
Voya U.S. Stock Index Portfolio - Institutional Class | 17,452 | 12,560 | ||||||
VY® Clarion Global Real Estate Portfolio - Service Class | 1,134 | 2,286 | ||||||
VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | 2,738 | 4,061 | ||||||
VY® Invesco Growth and Income Portfolio - Service Class | 3,241 | 1,116 | ||||||
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class | 6,068 | 8,148 | ||||||
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | 4,519 | 4,660 | ||||||
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | 12,447 | 14,424 | ||||||
VY® T. Rowe Price Equity Income Portfolio - Institutional Class | 6,722 | 5,022 | ||||||
VY® T. Rowe Price International Stock Portfolio - Institutional Class | 1,021 | 1,203 | ||||||
Voya Partners, Inc.: | ||||||||
Voya Global Bond Portfolio - Service Class | 1,151 | 1,863 | ||||||
Voya Solution Moderately Aggressive Portfolio - Initial Class | 596 | 284 | ||||||
VY® American Century Small-Mid Cap Value Portfolio - Initial Class | 6 | 13 | ||||||
VY® Baron Growth Portfolio - Initial Class | 1,789 | 3,857 | ||||||
VY® Columbia Small Cap Value II Portfolio - Initial Class | 2,736 | 1,891 | ||||||
VY® Invesco Comstock Portfolio - Initial Class | 801 | 1,262 | ||||||
VY® Invesco Equity and Income Portfolio - Initial Class | 1,171 | 1,806 | ||||||
VY® JPMorgan Mid Cap Value Portfolio - Initial Class | 1,549 | 2,283 | ||||||
VY® Oppenheimer Global Portfolio - Initial Class | 1,540 | 2,503 | ||||||
VY® Pioneer High Yield Portfolio - Initial Class | 11,148 | 6,982 |
Purchases | Sales | |||||||
(Dollars in thousands) | ||||||||
Voya Partners, Inc. (continued): | ||||||||
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | $ | 6,118 | $ | 3,787 | ||||
VY® Templeton Foreign Equity Portfolio - Initial Class | 1,881 | 1,550 | ||||||
Voya Strategic Allocation Portfolios, Inc.: | ||||||||
Voya Strategic Allocation Conservative Portfolio - Class I | 2 | 39 | ||||||
Voya Strategic Allocation Growth Portfolio - Class I | 6 | 50 | ||||||
Voya Strategic Allocation Moderate Portfolio - Class I | 28 | 180 | ||||||
Voya Variable Funds: | ||||||||
Voya Growth and Income Portfolio - Class I | 1,156 | 569 | ||||||
Voya Variable Portfolios, Inc.: | ||||||||
Voya Global Equity Portfolio - Class I | 1,086 | 1,511 | ||||||
Voya Index Plus LargeCap Portfolio - Class I | 793 | 1,060 | ||||||
Voya Index Plus MidCap Portfolio - Class I | 4,049 | 2,011 | ||||||
Voya Index Plus SmallCap Portfolio - Class I | 2,564 | 1,538 | ||||||
Voya International Index Portfolio - Class S | 2,431 | 3,235 | ||||||
Voya Russell™ Large Cap Growth Index Portfolio - Class I | 2,134 | 9,516 | ||||||
Voya Russell™ Large Cap Index Portfolio - Class I | 954 | 1,669 | ||||||
Voya Russell™ Large Cap Value Index Portfolio - Class I | 1,963 | 1,721 | ||||||
Voya Russell™ Mid Cap Growth Index Portfolio - Class I | 717 | 1,039 | ||||||
Voya Russell™ Small Cap Index Portfolio - Class I | 2,054 | 659 | ||||||
Voya Small Company Portfolio - Class S | 5,351 | 1,496 | ||||||
Voya U.S. Bond Index Portfolio - Class I | 4,408 | 3,252 | ||||||
Voya Variable Products Trust: | ||||||||
Voya MidCap Opportunities Portfolio - Class I | 255 | 194 | ||||||
Voya SmallCap Opportunities Portfolio - Class I | 1,619 | 1,332 |
7. | Changes in Units |
Year ended December 31 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||
Units | Units | Net Increase | Units | Units | Net Increase | |||||||||||||
Issued | Redeemed | (Decrease) | Issued | Redeemed | (Decrease) | |||||||||||||
AIM Variable Insurance Funds: | ||||||||||||||||||
Invesco V.I. Core Equity Fund - Series I Shares | 2,342 | 37,149 | (34,807 | ) | 1,720 | 35,518 | (33,798 | ) | ||||||||||
American Funds Insurance Series®: | ||||||||||||||||||
Growth Fund - Class 2 | 136,310 | 265,400 | (129,090 | ) | 228,484 | 375,634 | (147,150 | ) | ||||||||||
Growth-Income Fund - Class 2 | 132,427 | 211,649 | (79,222 | ) | 162,510 | 250,533 | (88,023 | ) | ||||||||||
International Fund - Class 2 | 215,947 | 268,546 | (52,599 | ) | 264,766 | 222,972 | 41,794 | |||||||||||
BlackRock Variable Series Funds, Inc.: | ||||||||||||||||||
BlackRock Global Allocation V.I. Fund - Class III | 194,926 | 226,172 | (31,246 | ) | 220,258 | 429,603 | (209,345 | ) | ||||||||||
Fidelity® Variable Insurance Products: | ||||||||||||||||||
Fidelity® VIP Equity-Income Portfolio - Service Class | 43,146 | 49,084 | (5,938 | ) | 28,029 | 81,230 | (53,201 | ) | ||||||||||
Fidelity® Variable Insurance Products II: | ||||||||||||||||||
Fidelity® VIP Contrafund® Portfolio - Service Class | 120,771 | 404,947 | (284,176 | ) | 180,607 | 267,247 | (86,640 | ) | ||||||||||
Fidelity® Variable Insurance Products V: | ||||||||||||||||||
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | 65 | 3,715 | (3,650 | ) | 94 | 1,429 | (1,335 | ) | ||||||||||
M Fund, Inc.: | ||||||||||||||||||
M Capital Appreciation Fund | 9,834 | 23,625 | (13,791 | ) | 16,509 | 19,919 | (3,410 | ) | ||||||||||
M International Equity Fund | 48,008 | 51,879 | (3,871 | ) | 107,652 | 167,613 | (59,961 | ) | ||||||||||
M Large Cap Growth Fund | 7,644 | 80,488 | (72,844 | ) | 72,599 | 71,395 | 1,204 | |||||||||||
M Large Cap Value Fund | 9,613 | 57,801 | (48,188 | ) | 81,169 | 35,101 | 46,068 | |||||||||||
Neuberger Berman Advisers Management Trust®: | ||||||||||||||||||
Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | 6,093 | 11,689 | (5,596 | ) | 10,181 | 13,889 | (3,708 | ) | ||||||||||
Van Eck VIP Trust: | ||||||||||||||||||
Van Eck VIP Global Hard Assets Fund - Initial Class | 141 | 8,924 | (8,783 | ) | 2,466 | 18,756 | (16,290 | ) | ||||||||||
Voya Balanced Portfolio, Inc.: | ||||||||||||||||||
Voya Balanced Portfolio - Class I | 55,907 | 99,595 | (43,688 | ) | 83,376 | 170,118 | (86,742 | ) |
Year ended December 31 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||
Units | Units | Net Increase | Units | Units | Net Increase | |||||||||||||
Issued | Redeemed | (Decrease) | Issued | Redeemed | (Decrease) | |||||||||||||
Voya Intermediate Bond Portfolio: | ||||||||||||||||||
Voya Intermediate Bond Portfolio - Class I | 525,620 | 816,205 | (290,585 | ) | 968,034 | 930,974 | 37,060 | |||||||||||
Voya Investors Trust: | ||||||||||||||||||
Voya Global Perspectives® Portfolio - Class I | 725,462 | 20,168 | 705,294 | 10,138 | 13,341 | (3,203 | ) | |||||||||||
Voya Government Liquid Assets Portfolio - Class I | 2,012,930 | 2,977,946 | (965,016 | ) | 2,185,612 | 1,857,222 | 328,390 | |||||||||||
Voya Government Liquid Assets Portfolio - Service Class | 1,452,438 | 1,756,701 | (304,263 | ) | 1,667,115 | 2,178,373 | (511,258 | ) | ||||||||||
Voya Large Cap Growth Portfolio - Institutional Class | 156,341 | 220,292 | (63,951 | ) | 169,280 | 416,270 | (246,990 | ) | ||||||||||
Voya Large Cap Value Portfolio - Institutional Class | 108,441 | 172,007 | (63,566 | ) | 156,163 | 319,267 | (163,104 | ) | ||||||||||
Voya Limited Maturity Bond Portfolio - Service Class | 947,385 | 391,207 | 556,178 | 556,696 | 418,376 | 138,320 | ||||||||||||
Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | 6,287 | 8,635 | (2,348 | ) | 13,047 | 59,254 | (46,207 | ) | ||||||||||
Voya Retirement Growth Portfolio - Institutional Class | 180,955 | 325,937 | (144,982 | ) | 274,918 | 340,214 | (65,296 | ) | ||||||||||
Voya Retirement Moderate Growth Portfolio - Institutional Class | 110,100 | 152,310 | (42,210 | ) | 128,818 | 252,139 | (123,321 | ) | ||||||||||
Voya Retirement Moderate Portfolio - Institutional Class | 71,982 | 112,964 | (40,982 | ) | 71,724 | 165,204 | (93,480 | ) | ||||||||||
Voya U.S. Stock Index Portfolio - Institutional Class | 533,406 | 836,437 | (303,031 | ) | 465,499 | 878,743 | (413,244 | ) | ||||||||||
VY® Clarion Global Real Estate Portfolio - Service Class | 148,488 | 250,483 | (101,995 | ) | 343,467 | 329,010 | 14,457 | |||||||||||
VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | 110,671 | 258,530 | (147,859 | ) | 208,266 | 204,991 | 3,275 | |||||||||||
VY® Invesco Growth and Income Portfolio - Service Class | 100,228 | 70,131 | 30,097 | 79,471 | 100,357 | (20,886 | ) | |||||||||||
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class | 551,854 | 701,292 | (149,438 | ) | 416,841 | 261,064 | 155,777 | |||||||||||
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | 116,027 | 212,321 | (96,294 | ) | 163,350 | 193,708 | (30,358 | ) | ||||||||||
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | 284,281 | 523,796 | (239,515 | ) | 391,060 | 504,719 | (113,659 | ) | ||||||||||
VY® T. Rowe Price Equity Income Portfolio - Institutional Class | 181,707 | 241,275 | (59,568 | ) | 103,838 | 249,277 | (145,439 | ) | ||||||||||
VY® T. Rowe Price International Stock Portfolio - Institutional Class | 82,314 | 98,366 | (16,052 | ) | 154,833 | 187,204 | (32,371 | ) | ||||||||||
Voya Partners, Inc.: | ||||||||||||||||||
Voya Global Bond Portfolio - Service Class | 116,119 | 174,760 | (58,641 | ) | 127,933 | 200,103 | (72,170 | ) | ||||||||||
Voya Solution Moderately Aggressive Portfolio - Initial Class | 71,569 | 47,418 | 24,151 | 349,195 | 78,125 | 271,070 | ||||||||||||
VY® American Century Small-Mid Cap Value Portfolio - Initial Class | 5 | 478 | (473 | ) | 6 | 796 | (790 | ) | ||||||||||
VY® Baron Growth Portfolio - Initial Class | 41,926 | 187,458 | (145,532 | ) | 80,599 | 146,556 | (65,957 | ) | ||||||||||
VY® Columbia Small Cap Value II Portfolio - Initial Class | 156,145 | 129,091 | 27,054 | 104,207 | 153,414 | (49,207 | ) | |||||||||||
VY® Invesco Comstock Portfolio - Initial Class | 40,556 | 68,024 | (27,468 | ) | 39,665 | 95,039 | (55,374 | ) | ||||||||||
VY® Invesco Equity and Income Portfolio - Initial Class | 49,239 | 105,974 | (56,735 | ) | 80,542 | 87,171 | (6,629 | ) | ||||||||||
VY® JPMorgan Mid Cap Value Portfolio - Initial Class | 1,280 | 60,116 | (58,836 | ) | 5,571 | 147,018 | (141,447 | ) |
Year ended December 31 | ||||||||||||||||||
2016 | 2015 | |||||||||||||||||
Units | Units | Net Increase | Units | Units | Net Increase | |||||||||||||
Issued | Redeemed | (Decrease) | Issued | Redeemed | (Decrease) | |||||||||||||
Voya Partners, Inc. (continued): | ||||||||||||||||||
VY® Oppenheimer Global Portfolio - Initial Class | 61,878 | 147,021 | (85,143 | ) | 248,006 | 152,450 | 95,556 | |||||||||||
VY® Pioneer High Yield Portfolio - Initial Class | 606,438 | 432,297 | 174,141 | 492,853 | 776,816 | (283,963 | ) | |||||||||||
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | 130,422 | 209,898 | (79,476 | ) | 291,312 | 293,445 | (2,133 | ) | ||||||||||
VY® Templeton Foreign Equity Portfolio - Initial Class | 188,919 | 186,252 | 2,667 | 110,745 | 206,471 | (95,726 | ) | |||||||||||
Voya Strategic Allocation Portfolios, Inc.: | ||||||||||||||||||
Voya Strategic Allocation Conservative Portfolio - Class I | 24 | 2,535 | (2,511 | ) | 38 | 243 | (205 | ) | ||||||||||
Voya Strategic Allocation Growth Portfolio - Class I | 39 | 3,254 | (3,215 | ) | 51 | 1,340 | (1,289 | ) | ||||||||||
Voya Strategic Allocation Moderate Portfolio - Class I | 5 | 10,692 | (10,687 | ) | 28 | 10,010 | (9,982 | ) | ||||||||||
Voya Variable Funds: | ||||||||||||||||||
Voya Growth and Income Portfolio - Class I | 38,137 | 47,515 | (9,378 | ) | 32,556 | 154,228 | (121,672 | ) | ||||||||||
Voya Variable Portfolios, Inc.: | ||||||||||||||||||
Voya Global Equity Portfolio - Class I | 168,946 | 243,181 | (74,235 | ) | 1,516,442 | 320,466 | 1,195,976 | |||||||||||
Voya Index Plus LargeCap Portfolio - Class I | 38,904 | 60,203 | (21,299 | ) | 32,737 | 138,708 | (105,971 | ) | ||||||||||
Voya Index Plus MidCap Portfolio - Class I | 124,110 | 90,886 | 33,224 | 99,262 | 117,074 | (17,812 | ) | |||||||||||
Voya Index Plus SmallCap Portfolio - Class I | 96,340 | 67,560 | 28,780 | 40,118 | 142,175 | (102,057 | ) | |||||||||||
Voya International Index Portfolio - Class S | 181,639 | 261,245 | (79,606 | ) | 277,992 | 164,671 | 113,321 | |||||||||||
Voya Russell™ Large Cap Growth Index Portfolio - Class I | 143,807 | 424,481 | (280,674 | ) | 247,471 | 331,752 | (84,281 | ) | ||||||||||
Voya Russell™ Large Cap Index Portfolio - Class I | 41,090 | 71,094 | (30,004 | ) | 90,363 | 59,459 | 30,904 | |||||||||||
Voya Russell™ Large Cap Value Index Portfolio - Class I | 84,779 | 81,703 | 3,076 | 41,217 | 59,537 | (18,320 | ) | |||||||||||
Voya Russell™ Mid Cap Growth Index Portfolio - Class I | 32,158 | 46,657 | (14,499 | ) | 139,497 | 110,129 | 29,368 | |||||||||||
Voya Russell™ Small Cap Index Portfolio - Class I | 94,444 | 46,732 | 47,712 | 85,613 | 33,432 | 52,181 | ||||||||||||
Voya Small Company Portfolio - Class S | 264,220 | 102,636 | 161,584 | 38,734 | 122,447 | (83,713 | ) | |||||||||||
Voya U.S. Bond Index Portfolio - Class I | 368,403 | 292,284 | 76,119 | 434,550 | 267,987 | 166,563 | ||||||||||||
Voya Variable Products Trust: | ||||||||||||||||||
Voya MidCap Opportunities Portfolio - Class I | 130 | 6,770 | (6,640 | ) | 149 | 15,697 | (15,548 | ) | ||||||||||
Voya SmallCap Opportunities Portfolio - Class I | 77,052 | 89,396 | (12,344 | ) | 111,197 | 178,448 | (67,251 | ) |
8. | Financial Highlights |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Invesco V.I. Core Equity Fund - Series I Shares | ||||||||||||||||||||
2016 | 301 | $17.76 | to | $19.24 | $5,387 | 0.75% | 0.00% | to | 0.75% | 9.43% | to | 10.26% | ||||||||
2015 | 335 | $16.23 | to | $17.45 | $5,489 | 1.12% | 0.00% | to | 0.75% | -6.46% | to | -5.78% | ||||||||
2014 | 369 | $17.35 | to | $18.52 | $6,455 | 0.85% | 0.00% | to | 0.75% | 7.36% | to | 8.18% | ||||||||
2013 | 417 | $16.16 | to | $17.12 | $6,786 | 1.36% | 0.00% | to | 0.75% | 28.25% | to | 29.21% | ||||||||
2012 | 485 | $12.60 | to | $13.25 | $6,144 | 0.97% | 0.00% | to | 0.75% | 13.00% | to | 13.93% | ||||||||
Growth Fund - Class 2 | ||||||||||||||||||||
2016 | 1,530 | $25.57 | to | $36.20 | $53,559 | 0.75% | 0.00% | to | 0.75% | 8.68% | to | 9.51% | ||||||||
2015 | 1,659 | $23.35 | to | $33.07 | $53,048 | 0.61% | 0.00% | to | 0.75% | 6.07% | to | 6.86% | ||||||||
2014 | 1,806 | $21.85 | to | $30.95 | $54,118 | 0.79% | 0.00% | to | 0.75% | 7.67% | to | 8.52% | ||||||||
2013 | 1,902 | $20.14 | to | $28.52 | $52,581 | 0.92% | 0.00% | to | 0.75% | 29.15% | to | 30.11% | ||||||||
2012 | 2,065 | $15.48 | to | $21.92 | $43,946 | 0.76% | 0.00% | to | 0.75% | 16.99% | to | 17.91% | ||||||||
Growth-Income Fund - Class 2 | ||||||||||||||||||||
2016 | 1,083 | $23.15 | to | $32.14 | $33,608 | 1.44% | 0.00% | to | 0.75% | 10.69% | to | 11.52% | ||||||||
2015 | 1,162 | $20.76 | to | $28.82 | $32,330 | 1.31% | 0.00% | to | 0.75% | 0.69% | to | 1.48% | ||||||||
2014 | 1,250 | $20.46 | to | $28.40 | $34,387 | 1.31% | 0.00% | to | 0.75% | 9.84% | to | 10.63% | ||||||||
2013 | 1,256 | $18.50 | to | $25.67 | $31,330 | 1.36% | 0.00% | to | 0.75% | 32.49% | to | 33.49% | ||||||||
2012 | 1,328 | $13.86 | to | $19.23 | $24,813 | 1.57% | 0.00% | to | 0.75% | 16.63% | to | 17.56% | ||||||||
International Fund - Class 2 | ||||||||||||||||||||
2016 | 1,571 | $18.61 | to | $30.40 | $46,052 | 1.37% | 0.00% | to | 0.75% | 2.77% | to | 3.54% | ||||||||
2015 | 1,624 | $17.98 | to | $29.36 | $46,064 | 1.59% | 0.00% | to | 0.75% | -5.25% | to | -4.51% | ||||||||
2014 | 1,582 | $18.83 | to | $30.75 | $46,977 | 1.42% | 0.00% | to | 0.75% | -3.40% | to | -2.64% | ||||||||
2013 | 1,591 | $19.34 | to | $31.59 | $48,698 | 1.40% | 0.00% | to | 0.75% | 20.75% | to | 21.64% | ||||||||
2012 | 1,681 | $15.90 | to | $25.97 | $42,279 | 1.52% | 0.00% | to | 0.75% | 17.01% | to | 17.88% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
BlackRock Global Allocation V.I. Fund - Class III | ||||||||||||||||||||
2016 | 651 | $16.13 | to | $17.08 | $10,991 | 1.22% | 0.00% | to | 0.75% | 3.07% | to | 3.77% | ||||||||
2015 | 682 | $15.65 | to | $16.46 | $11,113 | 1.09% | 0.00% | to | 0.75% | -1.76% | to | -0.96% | ||||||||
2014 | 892 | $15.93 | to | $16.62 | $14,691 | 2.32% | 0.00% | to | 0.75% | 1.14% | to | 1.90% | ||||||||
2013 | 827 | $15.75 | to | $16.31 | $13,360 | 1.04% | 0.00% | to | 0.75% | 13.55% | to | 14.46% | ||||||||
2012 | 903 | $13.87 | to | $14.25 | $12,769 | 1.31% | 0.00% | to | 0.75% | 9.21% | to | 9.95% | ||||||||
Fidelity® VIP Equity-Income Portfolio - Service Class | ||||||||||||||||||||
2016 | 314 | $19.84 | to | $21.66 | $6,574 | 2.23% | 0.00% | to | 0.75% | 17.05% | to | 17.91% | ||||||||
2015 | 320 | $16.95 | to | $18.37 | $5,706 | 2.93% | 0.00% | to | 0.75% | -4.83% | to | -4.11% | ||||||||
2014 | 373 | $17.81 | to | $19.16 | $6,979 | 2.98% | 0.00% | to | 0.75% | 7.81% | to | 8.68% | ||||||||
2013 | 331 | $16.52 | to | $17.63 | $5,691 | 2.28% | 0.00% | to | 0.75% | 27.08% | to | 28.03% | ||||||||
2012 | 408 | $13.00 | to | $13.77 | $5,471 | 3.46% | 0.00% | to | 0.75% | 16.28% | to | 17.19% | ||||||||
Fidelity® VIP Contrafund® Portfolio - Service Class | ||||||||||||||||||||
2016 | 1,026 | $23.91 | to | $26.11 | $25,906 | 0.64% | 0.00% | to | 0.75% | 7.08% | to | 7.92% | ||||||||
2015 | 1,310 | $22.33 | to | $24.20 | $30,752 | 0.93% | 0.00% | to | 0.75% | -0.18% | to | 0.58% | ||||||||
2014 | 1,397 | $22.37 | to | $24.06 | $32,694 | 0.91% | 0.00% | to | 0.75% | 10.96% | to | 11.82% | ||||||||
2013 | 1,318 | $20.16 | to | $21.52 | $27,683 | 0.95% | 0.00% | to | 0.75% | 30.15% | to | 31.14% | ||||||||
2012 | 1,524 | $15.49 | to | $16.41 | $24,446 | 1.36% | 0.00% | to | 0.75% | 15.51% | to | 16.35% | ||||||||
Fidelity® VIP Investment Grade Bond Portfolio - Initial Class | ||||||||||||||||||||
2016 | 12 | $15.10 | to | $16.49 | $183 | 2.12% | 0.00% | to | 0.75% | 3.92% | to | 4.76% | ||||||||
2015 | 16 | $14.53 | to | $15.74 | $232 | 2.46% | 0.00% | to | 0.75% | -1.29% | to | -0.63% | ||||||||
2014 | 17 | $14.72 | to | $15.84 | $255 | 2.36% | 0.00% | to | 0.75% | 4.99% | to | 5.81% | ||||||||
2013 | 18 | $14.02 | to | $14.97 | $253 | 2.19% | 0.00% | to | 0.75% | -2.50% | to | -1.77% | ||||||||
2012 | 20 | $14.38 | to | $15.24 | $296 | 2.36% | 0.00% | to | 0.75% | 5.12% | to | 5.91% | ||||||||
M Capital Appreciation Fund | ||||||||||||||||||||
2016 | 250 | $37.79 | to | $42.53 | $9,495 | 0.37% | 0.00% | to | 0.75% | 20.16% | to | 21.06% | ||||||||
2015 | 264 | $31.45 | to | $35.13 | $8,335 | — | 0.00% | to | 0.75% | -7.28% | to | -6.59% | ||||||||
2014 | 267 | $33.92 | to | $37.61 | $9,101 | — | 0.00% | to | 0.75% | 11.58% | to | 12.44% | ||||||||
2013 | 321 | $30.40 | to | $33.45 | $9,803 | — | 0.00% | to | 0.75% | 38.18% | to | 39.20% | ||||||||
2012 | 275 | $22.00 | to | $24.03 | $6,072 | 0.33% | 0.00% | to | 0.75% | 16.53% | to | 17.45% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
M International Equity Fund | ||||||||||||||||||||
2016 | 485 | $16.96 | to | $19.09 | $8,275 | 1.17% | 0.00% | to | 0.75% | -0.76% | to | -0.05% | ||||||||
2015 | 489 | $17.09 | to | $19.10 | $8,408 | 1.65% | 0.00% | to | 0.75% | -4.68% | to | -3.92% | ||||||||
2014 | 548 | $17.93 | to | $19.88 | $10,029 | 2.05% | 0.00% | to | 0.75% | -7.77% | to | -7.06% | ||||||||
2013 | 681 | $19.44 | to | $21.39 | $13,444 | 2.37% | 0.00% | to | 0.75% | 15.44% | to | 16.31% | ||||||||
2012 | 728 | $16.84 | to | $18.39 | $12,330 | 2.12% | 0.00% | to | 0.75% | 19.77% | to | 20.67% | ||||||||
M Large Cap Growth Fund | ||||||||||||||||||||
2016 | 124 | $22.76 | to | $25.62 | $2,956 | 1.33% | 0.00% | to | 0.75% | -3.07% | to | -2.33% | ||||||||
2015 | 197 | $23.48 | to | $26.23 | $4,929 | 0.02% | 0.00% | to | 0.75% | 6.92% | to | 7.72% | ||||||||
2014 | 196 | $21.96 | to | $24.35 | $4,545 | 0.04% | 0.00% | to | 0.75% | 9.36% | to | 10.23% | ||||||||
2013 | 209 | $20.08 | to | $22.09 | $4,401 | 0.50% | 0.00% | to | 0.75% | 35.13% | to | 36.11% | ||||||||
2012 | 256 | $14.86 | to | $16.23 | $3,989 | 0.04% | 0.00% | to | 0.75% | 18.41% | to | 19.34% | ||||||||
M Large Cap Value Fund | ||||||||||||||||||||
2016 | 105 | $22.62 | to | $25.27 | $2,470 | 1.52% | 0.00% | to | 0.75% | 8.80% | to | 9.63% | ||||||||
2015 | 154 | $20.79 | to | $23.05 | $3,370 | 1.65% | 0.00% | to | 0.75% | -1.42% | to | -0.65% | ||||||||
2014 | 107 | $21.09 | to | $23.20 | $2,323 | 1.13% | 0.00% | to | 0.75% | 8.88% | to | 9.69% | ||||||||
2013 | 115 | $19.37 | to | $21.15 | $2,280 | 2.45% | 0.00% | to | 0.75% | 33.22% | to | 34.20% | ||||||||
2012 | 129 | $14.54 | to | $15.76 | $1,891 | 1.06% | 0.00% | to | 0.75% | 16.41% | to | 17.26% | ||||||||
Neuberger Berman Advisers Management Trust® Socially Responsive Portfolio - I Class | ||||||||||||||||||||
2016 | 64 | $22.39 | to | $24.45 | $1,521 | 0.68% | 0.00% | to | 0.75% | 9.06% | to | 9.89% | ||||||||
2015 | 70 | $20.53 | to | $22.25 | $1,509 | 0.58% | 0.00% | to | 0.75% | -1.20% | to | -0.49% | ||||||||
2014 | 73 | $20.78 | to | $22.36 | $1,596 | 0.37% | 0.00% | to | 0.75% | 9.54% | to | 10.42% | ||||||||
2013 | 85 | $18.97 | to | $20.25 | $1,659 | 0.66% | 0.00% | to | 0.75% | 36.57% | to | 37.57% | ||||||||
2012 | 97 | $13.89 | to | $14.72 | $1,394 | 0.21% | 0.00% | to | 0.75% | 10.15% | to | 11.01% | ||||||||
Van Eck VIP Global Hard Assets Fund - Initial Class | ||||||||||||||||||||
2016 | 27 | $33.21 | to | $34.65 | $896 | 0.45% | 0.00% | to | 0.75% | 42.59% | to | 43.72% | ||||||||
2015 | 36 | $23.29 | to | $24.11 | $834 | — | 0.00% | to | 0.75% | -33.93% | to | -33.45% | ||||||||
2014 | 52 | $35.25 | to | $36.23 | $1,836 | 0.12% | 0.00% | to | 0.75% | -19.70% | to | -19.11% | ||||||||
2013 | 67 | $43.90 | to | $44.79 | $2,975 | 0.73% | 0.00% | to | 0.75% | 9.70% | to | 10.54% | ||||||||
2012 | 89 | $40.02 | to | $40.52 | $3,591 | 0.58% | 0.00% | to | 0.75% | 2.62% | to | 3.39% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya Balanced Portfolio - Class I | ||||||||||||||||||||
2016 | 650 | $14.87 | to | $16.12 | $10,013 | 1.76% | 0.00% | to | 0.75% | 6.98% | to | 7.83% | ||||||||
2015 | 694 | $13.90 | to | $14.95 | $9,938 | 2.05% | 0.00% | to | 0.75% | -2.59% | to | -1.84% | ||||||||
2014 | 780 | $14.27 | to | $15.23 | $11,416 | 1.76% | 0.00% | to | 0.75% | 5.39% | to | 6.21% | ||||||||
2013 | 604 | $13.54 | to | $14.34 | $8,308 | 2.18% | 0.00% | to | 0.75% | 15.92% | to | 16.68% | ||||||||
2012 | 658 | $11.68 | to | $12.29 | $7,776 | 3.07% | 0.00% | to | 0.75% | 12.74% | to | 13.69% | ||||||||
Voya Intermediate Bond Portfolio - Class I | ||||||||||||||||||||
2016 | 3,624 | $16.88 | to | $20.29 | $69,907 | 2.35% | 0.00% | to | 0.75% | 3.53% | to | 4.33% | ||||||||
2015 | 3,914 | $16.18 | to | $19.45 | $72,595 | 3.54% | 0.00% | to | 0.75% | -0.11% | to | 0.62% | ||||||||
2014 | 3,877 | $16.08 | to | $19.34 | $71,653 | 4.34% | 0.00% | to | 0.75% | 5.84% | to | 6.67% | ||||||||
2013 | 2,053 | $15.08 | to | $18.13 | $35,686 | 3.36% | 0.00% | to | 0.75% | -0.84% | to | -0.11% | ||||||||
2012 | 2,050 | $15.10 | to | $18.15 | $35,828 | 4.35% | 0.00% | to | 0.75% | 8.56% | to | 9.42% | ||||||||
Voya Global Perspectives® Portfolio - Class I | ||||||||||||||||||||
2016 | 736 | $11.04 | to | $11.35 | $8,324 | 0.25% | 0.00% | to | 0.75% | 6.05% | to | 6.77% | ||||||||
2015 | 31 | $10.41 | to | $10.63 | $325 | 3.16% | 0.00% | to | 0.75% | -4.14% | to | -3.28% | ||||||||
2014 | 34 | $10.86 | to | $10.99 | $372 | — | 0.00% | to | 0.75% | 4.17% | ||||||||||
2013 | 5/3/2013 | 17 | $10.55 | $181 | (b) | 0 | (b) | |||||||||||||
2012 | (b) | (b) | (b) | (b) | (b) | (b) | ||||||||||||||
Voya Government Liquid Assets Portfolio - Class I | ||||||||||||||||||||
2016 | 2,441 | $10.82 | $26,423 | 0.14% | 0.75% | -0.55% | ||||||||||||||
2015 | 3,406 | $10.88 | $37,062 | — | 0.75% | -0.73% | ||||||||||||||
2014 | 3,078 | $10.96 | $33,736 | — | 0.75% | -0.72% | ||||||||||||||
2013 | 3,002 | $11.04 | $33,144 | — | 0.75% | -0.72% | ||||||||||||||
2012 | 4,152 | $11.12 | $46,173 | 0.10% | 0.75% | -0.63% | ||||||||||||||
Voya Government Liquid Assets Portfolio - Service Class | ||||||||||||||||||||
2016 | 1,333 | $13.48 | $17,967 | — | — | 0.07% | ||||||||||||||
2015 | 1,637 | $13.47 | $22,048 | — | — | — | ||||||||||||||
2014 | 2,148 | $13.47 | $28,930 | — | — | 0.07% | ||||||||||||||
2013 | 2,341 | $13.46 | $31,513 | — | — | — | ||||||||||||||
2012 | 2,589 | $11.55 | to | $13.46 | $34,850 | — | — | — |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya Large Cap Growth Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 1,313 | $29.55 | to | $32.26 | $39,997 | 0.54% | 0.00% | to | 0.75% | 3.21% | to | 3.96% | ||||||||
2015 | 1,378 | $28.63 | to | $31.03 | $40,562 | 0.57% | 0.00% | to | 0.75% | 5.57% | to | 6.38% | ||||||||
2014 | 1,624 | $27.12 | to | $29.17 | $45,236 | 0.39% | 0.00% | to | 0.75% | 12.77% | to | 13.63% | ||||||||
2013 | 1,262 | $24.05 | to | $25.67 | $30,788 | 0.53% | 0.00% | to | 0.75% | 30.00% | to | 30.98% | ||||||||
2012 | 1,318 | $18.50 | to | $19.61 | $24,685 | 0.56% | 0.00% | to | 0.75% | 17.16% | to | 18.13% | ||||||||
Voya Large Cap Value Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 894 | $17.56 | to | $18.36 | $16,053 | 2.41% | 0.00% | to | 0.75% | 13.07% | to | 13.90% | ||||||||
2015 | 958 | $15.53 | to | $16.12 | $15,144 | 1.79% | 0.00% | to | 0.75% | -5.19% | to | -4.45% | ||||||||
2014 | 1,121 | $16.38 | to | $16.87 | $18,622 | 2.49% | 0.00% | to | 0.75% | 9.27% | to | 10.05% | ||||||||
2013 | 402 | $14.99 | to | $15.33 | $6,089 | 0.70% | 0.00% | to | 0.75% | 29.90% | to | 30.91% | ||||||||
2012 | 14 | $11.54 | to | $11.71 | $162 | 2.57% | 0.00% | to | 0.75% | 13.81% | to | 14.69% | ||||||||
Voya Limited Maturity Bond Portfolio - Service Class | ||||||||||||||||||||
2016 | 2,303 | $11.91 | to | $17.30 | $33,533 | 1.22% | 0.00% | to | 0.75% | 0.51% | to | 1.29% | ||||||||
2015 | 1,746 | $11.85 | to | $17.08 | $24,748 | 1.05% | 0.00% | to | 0.75% | -0.17% | to | 0.54% | ||||||||
2014 | 1,608 | $11.87 | to | $16.99 | $22,235 | 0.70% | 0.00% | to | 0.75% | -0.08% | to | 0.71% | ||||||||
2013 | 1,537 | $11.88 | to | $16.87 | $21,326 | 0.89% | 0.00% | to | 0.75% | 0.00% | to | 0.72% | ||||||||
2012 | 1,586 | $11.88 | to | $16.75 | $21,872 | 0.81% | 0.00% | to | 0.75% | 0.68% | to | 1.52% | ||||||||
Voya Multi-Manager Large Cap Core Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 88 | $20.43 | to | $22.31 | $1,844 | 2.18% | 0.00% | to | 0.75% | 7.98% | to | 8.83% | ||||||||
2015 | 91 | $18.92 | to | $20.50 | $1,752 | 0.81% | 0.00% | to | 0.75% | -1.10% | to | -0.34% | ||||||||
2014 | 137 | $19.13 | to | $20.57 | $2,696 | 1.44% | 0.00% | to | 0.75% | 14.41% | to | 15.30% | ||||||||
2013 | 87 | $16.72 | to | $17.84 | $1,481 | 1.00% | 0.00% | to | 0.75% | 29.71% | to | 30.70% | ||||||||
2012 | 85 | $12.89 | to | $13.65 | $1,113 | 1.39% | 0.00% | to | 0.75% | 9.70% | to | 10.44% | ||||||||
Voya Retirement Growth Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 1,975 | $15.06 | to | $15.89 | $31,016 | 2.66% | 0.00% | to | 0.75% | 7.04% | to | 7.80% | ||||||||
2015 | 2,121 | $14.07 | to | $14.74 | $30,916 | 2.22% | 0.00% | to | 0.75% | -2.36% | to | -1.67% | ||||||||
2014 | 2,185 | $14.41 | to | $14.99 | $32,443 | 2.02% | 0.00% | to | 0.75% | 4.88% | to | 5.71% | ||||||||
2013 | 2,419 | $13.74 | to | $14.18 | $34,039 | 2.24% | 0.00% | to | 0.75% | 18.35% | to | 19.26% | ||||||||
2012 | 2,504 | $11.61 | to | $11.89 | $29,603 | 2.85% | 0.00% | to | 0.75% | 12.61% | to | 13.45% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya Retirement Moderate Growth Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 959 | $14.90 | to | $15.73 | $14,818 | 2.55% | 0.00% | to | 0.75% | 6.43% | to | 7.23% | ||||||||
2015 | 1,001 | $14.00 | to | $14.67 | $14,444 | 1.91% | 0.00% | to | 0.75% | -1.96% | to | -1.21% | ||||||||
2014 | 1,125 | $14.28 | to | $14.85 | $16,488 | 2.04% | 0.00% | to | 0.75% | 5.31% | to | 6.07% | ||||||||
2013 | 1,239 | $13.56 | to | $14.00 | $17,191 | 2.70% | 0.00% | to | 0.75% | 15.21% | to | 16.18% | ||||||||
2012 | 1,219 | $11.77 | to | $12.05 | $14,603 | 3.07% | 0.00% | to | 0.75% | 11.35% | to | 12.09% | ||||||||
Voya Retirement Moderate Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 545 | $14.37 | to | $15.17 | $8,028 | 2.30% | 0.00% | to | 0.75% | 5.27% | to | 6.16% | ||||||||
2015 | 586 | $13.65 | to | $14.29 | $8,165 | 1.14% | 0.00% | to | 0.75% | -1.94% | to | -1.24% | ||||||||
2014 | 679 | $13.92 | to | $14.47 | $9,624 | 3.24% | 0.00% | to | 0.75% | 4.82% | to | 5.62% | ||||||||
2013 | 722 | $13.28 | to | $13.70 | $9,718 | 3.11% | 0.00% | to | 0.75% | 9.48% | to | 10.31% | ||||||||
2012 | 772 | $12.13 | to | $12.42 | $9,467 | 3.53% | 0.00% | to | 0.75% | 9.77% | to | 10.60% | ||||||||
Voya U.S. Stock Index Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 7,076 | $23.19 | to | $25.50 | $167,819 | 2.02% | 0.00% | to | 0.75% | 10.80% | to | 11.65% | ||||||||
2015 | 7,377 | $20.93 | to | $22.84 | $157,399 | 1.83% | 0.00% | to | 0.75% | 0.38% | to | 1.11% | ||||||||
2014 | 7,792 | $20.85 | to | $22.59 | $165,273 | 1.85% | 0.00% | to | 0.75% | 12.52% | to | 13.35% | ||||||||
2013 | 8,401 | $18.53 | to | $19.93 | $157,986 | 1.96% | 0.00% | to | 0.75% | 31.05% | to | 32.07% | ||||||||
2012 | 9,001 | $14.14 | to | $15.09 | $128,974 | 1.91% | 0.00% | to | 0.75% | 14.96% | to | 15.81% | ||||||||
VY® Clarion Global Real Estate Portfolio - Service Class | ||||||||||||||||||||
2016 | 882 | $11.57 | to | $12.35 | $10,562 | 1.07% | 0.00% | to | 0.75% | -0.09% | to | 0.65% | ||||||||
2015 | 984 | $11.58 | to | $12.27 | $11,763 | 2.91% | 0.00% | to | 0.75% | -2.44% | to | -1.68% | ||||||||
2014 | 970 | $11.87 | to | $12.88 | $11,810 | 1.15% | 0.00% | to | 0.75% | 12.94% | to | 13.88% | ||||||||
2013 | 1,020 | $10.51 | to | $11.31 | $10,944 | 5.20% | 0.00% | to | 0.75% | 2.94% | to | 3.69% | ||||||||
2012 | 1,127 | $10.21 | to | $10.91 | $11,706 | 0.58% | 0.00% | to | 0.75% | 24.82% | to | 25.69% | ||||||||
VY® FMR® Diversified Mid Cap Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 759 | $18.97 | to | $20.55 | $14,831 | 0.77% | 0.00% | to | 0.75% | 11.20% | to | 12.05% | ||||||||
2015 | 906 | $17.06 | to | $18.34 | $15,963 | 0.43% | 0.00% | to | 0.75% | -2.12% | to | -1.40% | ||||||||
2014 | 903 | $17.43 | to | $21.34 | $16,143 | 0.43% | 0.00% | to | 0.75% | 5.44% | to | 6.27% | ||||||||
2013 | 994 | $16.53 | to | $20.08 | $16,744 | 0.68% | 0.00% | to | 0.75% | 35.38% | to | 36.41% | ||||||||
2012 | 1,519 | $12.21 | to | $14.72 | $18,771 | 0.90% | 0.00% | to | 0.75% | 14.11% | to | 14.95% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
VY® Invesco Growth and Income Portfolio - Service Class | ||||||||||||||||||||
2016 | 566 | $22.26 | to | $24.31 | $13,351 | 2.21% | 0.00% | to | 0.75% | 19.04% | to | 19.94% | ||||||||
2015 | 535 | $18.70 | to | $20.27 | $10,548 | 3.28% | 0.00% | to | 0.75% | -3.66% | to | -2.92% | ||||||||
2014 | 556 | $19.41 | to | $20.88 | $11,311 | 1.03% | 0.00% | to | 0.75% | 9.29% | to | 10.13% | ||||||||
2013 | 691 | $17.76 | to | $18.96 | $12,796 | 1.40% | 0.00% | to | 0.75% | 32.83% | to | 33.90% | ||||||||
2012 | 682 | $13.37 | to | $14.16 | $9,472 | 1.93% | 0.00% | to | 0.75% | 13.69% | to | 14.56% | ||||||||
VY® JPMorgan Emerging Markets Equity Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 1,882 | $13.34 | to | $14.53 | $26,095 | 1.63% | 0.00% | to | 0.75% | 12.38% | to | 13.25% | ||||||||
2015 | 2,031 | $11.87 | to | $12.83 | $24,961 | 1.50% | 0.00% | to | 0.75% | -16.17% | to | -15.54% | ||||||||
2014 | 1,876 | $14.16 | to | $15.19 | $27,299 | 1.12% | 0.00% | to | 0.75% | 0.35% | to | 1.13% | ||||||||
2013 | 2,207 | $14.11 | to | $15.02 | $31,982 | 1.11% | 0.00% | to | 0.75% | -6.18% | to | -5.44% | ||||||||
2012 | 2,053 | $15.04 | to | $15.90 | $31,544 | — | 0.00% | to | 0.75% | 18.43% | to | 19.37% | ||||||||
VY® JPMorgan Small Cap Core Equity Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 997 | $31.43 | to | $34.57 | $32,058 | 0.75% | 0.00% | to | 0.75% | 20.98% | to | 21.94% | ||||||||
2015 | 1,093 | $25.98 | to | $28.35 | $28,980 | 0.46% | 0.00% | to | 0.75% | -4.17% | to | -3.47% | ||||||||
2014 | 1,123 | $26.09 | to | $29.37 | $31,001 | 0.53% | 0.00% | to | 0.75% | 7.79% | to | 8.62% | ||||||||
2013 | 1,238 | $24.02 | to | $27.04 | $31,624 | 0.92% | 0.00% | to | 0.75% | 38.34% | to | 39.38% | ||||||||
2012 | 1,305 | $17.24 | to | $19.40 | $24,029 | 0.41% | 0.00% | to | 0.75% | 18.05% | to | 18.98% | ||||||||
VY® T. Rowe Price Capital Appreciation Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 1,722 | $37.49 | to | $42.20 | $69,158 | 1.53% | 0.00% | to | 0.75% | 7.48% | to | 8.32% | ||||||||
2015 | 1,961 | $34.88 | to | $38.96 | $72,875 | 1.53% | 0.00% | to | 0.75% | 4.71% | to | 5.50% | ||||||||
2014 | 2,075 | $33.31 | to | $36.93 | $73,165 | 1.58% | 0.00% | to | 0.75% | 11.59% | to | 12.42% | ||||||||
2013 | 2,115 | $21.22 | to | $32.85 | $66,527 | 1.38% | 0.00% | to | 0.75% | 21.59% | to | 22.53% | ||||||||
2012 | 2,160 | $17.32 | to | $26.81 | $55,562 | 1.87% | 0.00% | to | 0.75% | 13.92% | to | 14.78% | ||||||||
VY® T. Rowe Price Equity Income Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 994 | $28.83 | to | $29.33 | $28,884 | 2.50% | 0.00% | to | 0.75% | 18.16% | to | 19.08% | ||||||||
2015 | 1,053 | $24.40 | to | $24.63 | $25,812 | 2.29% | 0.00% | to | 0.75% | -7.33% | to | -6.63% | ||||||||
2014 | 1,199 | $26.33 | to | $26.38 | $31,600 | 2.16% | 0.00% | to | 0.75% | 6.99% | to | 7.76% | ||||||||
2013 | 1,261 | $24.48 | to | $24.61 | $30,952 | 1.90% | 0.00% | to | 0.75% | 29.05% | to | 30.01% | ||||||||
2012 | 1,387 | $18.83 | to | $19.07 | $26,310 | 2.26% | 0.00% | to | 0.75% | 16.56% | to | 17.47% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
VY® T. Rowe Price International Stock Portfolio - Institutional Class | ||||||||||||||||||||
2016 | 490 | $16.57 | to | $18.08 | $8,519 | 1.73% | 0.00% | to | 0.75% | 1.47% | to | 2.15% | ||||||||
2015 | 506 | $16.33 | to | $17.70 | $8,648 | 1.27% | 0.00% | to | 0.75% | -1.51% | to | -0.73% | ||||||||
2014 | 538 | $16.58 | to | $17.83 | $9,315 | 1.32% | 0.00% | to | 0.75% | -1.54% | to | -0.78% | ||||||||
2013 | 518 | $16.84 | to | $17.97 | $9,066 | 1.29% | 0.00% | to | 0.75% | 13.71% | to | 14.53% | ||||||||
2012 | 553 | $14.81 | to | $15.69 | $8,463 | 0.55% | 0.00% | to | 0.75% | 18.10% | to | 19.04% | ||||||||
Voya Global Bond Portfolio - Service Class | ||||||||||||||||||||
2016 | 980 | $14.02 | to | $15.40 | $14,243 | 1.55% | 0.00% | to | 0.75% | 5.26% | to | 6.02% | ||||||||
2015 | 1,038 | $13.32 | to | $14.53 | $14,319 | — | 0.00% | to | 0.75% | -5.26% | to | -4.47% | ||||||||
2014 | 1,110 | $14.06 | to | $15.21 | $16,073 | 0.58% | 0.00% | to | 0.75% | -0.57% | to | 0.13% | ||||||||
2013 | 1,161 | $14.14 | to | $15.19 | $16,876 | 1.80% | 0.00% | to | 0.75% | -4.97% | to | -4.25% | ||||||||
2012 | 1,238 | $14.88 | to | $15.87 | $18,884 | 6.43% | 0.00% | to | 0.75% | 6.82% | to | 7.67% | ||||||||
Voya Solution Moderately Aggressive Portfolio - Initial Class | ||||||||||||||||||||
2016 | 295 | $10.16 | to | $10.26 | $3,021 | 1.24% | 0.00% | to | 0.75% | 5.61% | to | 6.32% | ||||||||
2015 | 8/14/2015 | 271 | $9.62 | to | $9.65 | $2,612 | (c) | 0.00% | to | 0.75% | (c) | |||||||||
2014 | (c) | (c) | (c) | (c) | (c) | (c) | ||||||||||||||
2013 | (c) | (c) | (c) | (c) | (c) | (c) | ||||||||||||||
2012 | (c) | (c) | (c) | (c) | (c) | (c) | ||||||||||||||
VY® American Century Small-Mid Cap Value Portfolio - Initial Class | ||||||||||||||||||||
2016 | 2 | $29.86 | to | $32.60 | $63 | 1.62% | 0.00% | to | 0.75% | 23.44% | to | 24.38% | ||||||||
2015 | 2 | $24.19 | to | $26.21 | $62 | 1.38% | 0.00% | to | 0.75% | -2.26% | to | -1.54% | ||||||||
2014 | 3 | $24.75 | to | $26.62 | $83 | 1.15% | 0.00% | to | 0.75% | 11.89% | to | 12.75% | ||||||||
2013 | 4 | $22.12 | to | $23.61 | $91 | 0.9% | 0.00% | to | 0.75% | 30.81% | to | 31.75% | ||||||||
2012 | 7 | $16.91 | to | $17.92 | $131 | 1.23% | 0.00% | to | 0.75% | 15.74% | to | 16.59% | ||||||||
VY® Baron Growth Portfolio - Initial Class | ||||||||||||||||||||
2016 | 418 | $22.84 | to | $24.94 | $9,998 | — | 0.00% | to | 0.75% | 4.77% | to | 5.59% | ||||||||
2015 | 563 | $21.80 | to | $23.62 | $12,857 | 0.54% | 0.00% | to | 0.75% | -5.46% | to | -4.71% | ||||||||
2014 | 629 | $23.06 | to | $24.80 | $15,064 | 0.27% | 0.00% | to | 0.75% | 3.78% | to | 4.55% | ||||||||
2013 | 747 | $22.22 | to | $23.72 | $17,134 | 1.60% | 0.00% | to | 0.75% | 38.18% | to | 39.22% | ||||||||
2012 | 710 | $16.08 | to | $17.04 | $11,798 | — | 0.00% | to | 0.75% | 19.11% | to | 20.00% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
VY® Columbia Small Cap Value II Portfolio - Initial Class | ||||||||||||||||||||
2016 | 491 | $19.90 | to | $21.56 | $10,164 | 0.50% | 0.00% | to | 0.75% | 23.07% | to | 24.05% | ||||||||
2015 | 464 | $16.17 | to | $17.38 | $7,806 | 0.57% | 0.00% | to | 0.75% | -3.41% | to | -2.74% | ||||||||
2014 | 514 | $16.74 | to | $17.87 | $8,922 | 0.39% | 0.00% | to | 0.75% | 3.85% | to | 4.69% | ||||||||
2013 | 553 | $16.12 | to | $17.07 | $9,163 | 0.96% | 0.00% | to | 0.75% | 39.21% | to | 40.26% | ||||||||
2012 | 556 | $11.58 | to | $12.17 | $6,605 | 0.54% | 0.00% | to | 0.75% | 13.75% | to | 14.60% | ||||||||
VY® Invesco Comstock Portfolio - Initial Class | ||||||||||||||||||||
2016 | 287 | $22.14 | to | $27.44 | $7,558 | 2.60% | 0.00% | to | 0.75% | 17.22% | to | 18.14% | ||||||||
2015 | 315 | $18.74 | to | $23.23 | $7,055 | 2.46% | 0.00% | to | 0.75% | -6.43% | to | -5.76% | ||||||||
2014 | 370 | $19.89 | to | $24.65 | $8,767 | 2.04% | 0.00% | to | 0.75% | 8.52% | to | 9.41% | ||||||||
2013 | 428 | $18.18 | to | $22.54 | $9,347 | 1.07% | 0.00% | to | 0.75% | 34.53% | to | 35.47% | ||||||||
2012 | 401 | $13.42 | to | $16.64 | $6,479 | 1.50% | 0.00% | to | 0.75% | 17.90% | to | 18.86% | ||||||||
VY® Invesco Equity and Income Portfolio - Initial Class | ||||||||||||||||||||
2016 | 382 | $22.60 | to | $25.25 | $9,331 | 2.00% | 0.00% | to | 0.75% | 14.43% | to | 15.30% | ||||||||
2015 | 439 | $19.75 | to | $21.90 | $9,272 | 2.28% | 0.00% | to | 0.75% | -2.81% | to | -2.05% | ||||||||
2014 | 446 | $20.32 | to | $22.36 | $9,655 | 2.38% | 0.00% | to | 0.75% | 8.14% | to | 8.97% | ||||||||
2013 | 146 | $18.79 | to | $20.52 | $2,890 | 1.73% | 0.00% | to | 0.75% | 24.03% | to | 24.97% | ||||||||
2012 | 95 | $15.15 | to | $16.42 | $1,497 | 2.25% | 0.00% | to | 0.75% | 11.89% | to | 12.77% | ||||||||
VY® JPMorgan Mid Cap Value Portfolio - Initial Class | ||||||||||||||||||||
2016 | 382 | $28.38 | to | $43.84 | $15,818 | 0.88% | 0.00% | to | 0.75% | 14.10% | to | 14.95% | ||||||||
2015 | 441 | $24.69 | to | $38.14 | $15,972 | 0.77% | 0.00% | to | 0.75% | -3.51% | to | -2.78% | ||||||||
2014 | 582 | $25.40 | to | $39.23 | $21,842 | 1.02% | 0.00% | to | 0.75% | 14.39% | to | 15.30% | ||||||||
2013 | 710 | $22.03 | to | $34.03 | $23,197 | 0.95% | 0.00% | to | 0.75% | 30.93% | to | 31.90% | ||||||||
2012 | 518 | $16.71 | to | $25.80 | $12,975 | 0.92% | 0.00% | to | 0.75% | 19.41% | to | 20.39% | ||||||||
VY® Oppenheimer Global Portfolio - Initial Class | ||||||||||||||||||||
2016 | 471 | $20.44 | to | $22.31 | $10,111 | 1.09% | 0.00% | to | 0.75% | -0.49% | to | 0.22% | ||||||||
2015 | 556 | $20.54 | to | $22.26 | $11,994 | 1.77% | 0.00% | to | 0.75% | 3.32% | to | 4.12% | ||||||||
2014 | 460 | $19.88 | to | $21.38 | $9,517 | 1.20% | 0.00% | to | 0.75% | 1.58% | to | 2.30% | ||||||||
2013 | 656 | $19.57 | to | $20.90 | $13,236 | 0.93% | 0.00% | to | 0.75% | 26.18% | to | 27.13% | ||||||||
2012 | 1,142 | $15.51 | to | $16.44 | $18,504 | 1.24% | 0.00% | to | 0.75% | 20.79% | to | 21.69% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
VY® Pioneer High Yield Portfolio - Initial Class | ||||||||||||||||||||
2016 | 1,211 | $18.84 | to | $20.11 | $23,621 | 5.35% | 0.00% | to | 0.75% | 13.43% | to | 14.31% | ||||||||
2015 | 1,037 | $16.61 | to | $17.60 | $17,671 | 5.43% | 0.00% | to | 0.75% | -5.36% | to | -4.61% | ||||||||
2014 | 1,321 | $17.55 | to | $18.45 | $23,734 | 4.83% | 0.00% | to | 0.75% | -0.40% | to | 0.38% | ||||||||
2013 | 1,597 | $17.62 | to | $18.38 | $28,736 | 4.82% | 0.00% | to | 0.75% | 11.52% | to | 12.28% | ||||||||
2012 | 1,850 | $15.80 | to | $16.37 | $29,740 | 6.13% | 0.00% | to | 0.75% | 15.33% | to | 16.26% | ||||||||
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio - Initial Class | ||||||||||||||||||||
2016 | 1382 | $26.50 | to | $28.94 | $37,754 | 0.30% | 0.00% | to | 0.75% | 6.60% | to | 7.42% | ||||||||
2015 | 1,462 | $24.86 | to | $26.94 | $37,336 | — | 0.00% | to | 0.75% | 1.26% | to | 2.01% | ||||||||
2014 | 1,464 | $24.55 | to | $26.41 | $36,761 | 0.26% | 0.00% | to | 0.75% | 10.99% | to | 11.86% | ||||||||
2013 | 1,616 | $22.12 | to | $23.61 | $36,509 | 0.29% | 0.00% | to | 0.75% | 34.14% | to | 35.16% | ||||||||
2012 | 1,730 | $16.49 | to | $17.47 | $29,026 | 0.50% | 0.00% | to | 0.75% | 15.31% | to | 16.18% | ||||||||
VY® Templeton Foreign Equity Portfolio - Initial Class | ||||||||||||||||||||
2016 | 915 | $12.00 | to | $12.43 | $11,147 | 3.58% | 0.00% | to | 0.75% | 1.10% | to | 1.80% | ||||||||
2015 | 912 | $11.87 | to | $12.21 | $10,965 | 4.20% | 0.00% | to | 0.75% | -4.12% | to | -3.33% | ||||||||
2014 | 1,008 | $12.38 | to | $12.63 | $12,586 | 2.48% | 0.00% | to | 0.75% | -7.27% | to | -6.58% | ||||||||
2013 | 1,043 | $13.35 | to | $13.52 | $14,008 | 1.58% | 0.00% | to | 0.75% | 19.41% | to | 20.28% | ||||||||
2012 | 7/20/2012 | 1,091 | $11.18 | to | $11.24 | $12,220 | (a) | 0.00% | to | 0.75% | (a) | |||||||||
Voya Strategic Allocation Conservative Portfolio - Class I | ||||||||||||||||||||
2016 | 4 | $16.44 | to | $18.03 | $62 | 2.28% | 0.00% | to | 0.75% | 4.91% | to | 5.69% | ||||||||
2015 | 6 | $15.67 | to | $17.06 | $99 | 2.97% | 0.00% | to | 0.75% | -0.95% | to | -0.18% | ||||||||
2014 | 7 | $15.82 | to | $17.09 | $103 | 2.96% | 0.00% | to | 0.75% | 5.82% | to | 6.61% | ||||||||
2013 | 7 | $14.95 | to | $16.03 | $100 | 2.03% | 0.00% | to | 0.75% | 11.24% | to | 12.10% | ||||||||
2012 | 7 | $13.44 | to | $14.30 | $97 | 3.23% | 0.00% | to | 0.75% | 11.44% | to | 12.33% | ||||||||
Voya Strategic Allocation Growth Portfolio - Class I | ||||||||||||||||||||
2016 | 13 | $17.65 | to | $19.35 | $242 | 2.38% | 0.00% | to | 0.75% | 6.13% | to | 6.97% | ||||||||
2015 | 16 | $16.63 | to | $18.09 | $281 | 2.72% | 0.00% | to | 0.75% | -1.89% | to | -1.20% | ||||||||
2014 | 18 | $16.95 | to | $18.31 | $308 | 2.08% | 0.00% | to | 0.75% | 5.74% | to | 6.58% | ||||||||
2013 | 22 | $16.03 | to | $17.18 | $365 | 1.75% | 0.00% | to | 0.75% | 21.53% | to | 22.36% | ||||||||
2012 | 24 | $13.19 | to | $14.04 | $321 | 1.59% | 0.00% | to | 0.75% | 14.10% | to | 14.99% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya Strategic Allocation Moderate Portfolio - Class I | ||||||||||||||||||||
2016 | 55 | $17.04 | to | $18.69 | $1,029 | 2.59% | 0.00% | to | 0.75% | 5.84% | to | 6.68% | ||||||||
2015 | 66 | $16.10 | to | $17.52 | $1,147 | 2.91% | 0.00% | to | 0.75% | -1.35% | to | -0.57% | ||||||||
2014 | 76 | $16.32 | to | $17.62 | $1,329 | 2.32% | 0.00% | to | 0.75% | 5.91% | to | 6.66% | ||||||||
2013 | 82 | $15.41 | to | $16.52 | $1,343 | 2.14% | 0.00% | to | 0.75% | 15.69% | to | 16.58% | ||||||||
2012 | 90 | $13.32 | to | $14.17 | $1,276 | 2.10% | 0.00% | to | 0.75% | 12.79% | to | 13.63% | ||||||||
Voya Growth and Income Portfolio - Class I | ||||||||||||||||||||
2016 | 480 | $15.61 | to | $26.66 | $7,832 | 2.03% | 0.00% | to | 0.75% | 8.93% | to | 9.80% | ||||||||
2015 | 489 | $14.33 | to | $24.28 | $7,291 | 1.86% | 0.00% | to | 0.75% | -2.18% | to | -1.42% | ||||||||
2014 | 610 | $14.65 | to | $24.63 | $9,287 | 1.93% | 0.00% | to | 0.75% | 9.90% | to | 10.74% | ||||||||
2013 | 694 | $13.33 | to | $22.25 | $9,579 | 1.55% | 0.00% | to | 0.75% | 29.67% | to | 30.71% | ||||||||
2012 | 520 | $10.28 | to | $17.03 | $5,516 | 1.89% | 0.00% | to | 0.75% | 14.86% | to | 15.77% | ||||||||
Voya Global Equity Portfolio - Class I | ||||||||||||||||||||
2016 | 1,122 | $9.88 | to | $10.02 | $11,181 | 2.72% | 0.00% | to | 0.75% | 5.22% | to | 6.03% | ||||||||
2015 | 3/9/2015 | 1,196 | $9.39 | to | $9.45 | $11280 | (c) | 0.00% | to | 0.75% | (c) | |||||||||
2014 | (c) | (c) | (c) | (c) | (c) | (c) | ||||||||||||||
2013 | (c) | (c) | (c) | (c) | (c) | (c) | ||||||||||||||
2012 | (c) | (c) | (c) | (c) | (c) | (c) | ||||||||||||||
Voya Index Plus LargeCap Portfolio - Class I | ||||||||||||||||||||
2016 | 739 | $21.47 | to | $23.98 | $16,264 | 1.65% | 0.00% | to | 0.75% | 9.43% | to | 10.25% | ||||||||
2015 | 760 | $19.62 | to | $21.75 | $15,265 | 1.55% | 0.00% | to | 0.75% | 0.10% | to | 0.83% | ||||||||
2014 | 866 | $19.60 | to | $21.57 | $17,445 | 1.49% | 0.00% | to | 0.75% | 13.03% | to | 13.89% | ||||||||
2013 | 985 | $17.34 | to | $18.94 | $17,601 | 1.80% | 0.00% | to | 0.75% | 31.86% | to | 32.91% | ||||||||
2012 | 1,012 | $13.15 | to | $14.25 | $13,703 | 1.65% | 0.00% | to | 0.75% | 13.66% | to | 14.46% | ||||||||
Voya Index Plus MidCap Portfolio - Class I | ||||||||||||||||||||
2016 | 400 | $26.18 | to | $32.86 | $12,602 | 0.99% | 0.00% | to | 0.75% | 17.26% | to | 18.16% | ||||||||
2015 | 366 | $22.16 | to | $27.81 | $9,836 | 0.93% | 0.00% | to | 0.75% | -2.53% | to | -1.77% | ||||||||
2014 | 384 | $22.56 | to | $28.32 | $10,511 | 0.86% | 0.00% | to | 0.75% | 8.75% | to | 9.57% | ||||||||
2013 | 404 | $20.59 | to | $25.85 | $10,109 | 1.22% | 0.00% | to | 0.75% | 33.58% | to | 34.58% | ||||||||
2012 | 459 | $15.30 | to | $19.21 | $8,561 | 0.99% | 0.00% | to | 0.75% | 16.81% | to | 17.71% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya Index Plus SmallCap Portfolio - Class I | ||||||||||||||||||||
2016 | 278 | $25.06 | to | $33.09 | $8,685 | 0.74% | 0.00% | to | 0.75% | 26.41% | to | 27.34% | ||||||||
2015 | 249 | $19.68 | to | $25.99 | $6,201 | 0.97% | 0.00% | to | 0.75% | -3.93% | to | -3.20% | ||||||||
2014 | 351 | $20.34 | to | $26.85 | $9,093 | 0.62% | 0.00% | to | 0.75% | 4.63% | to | 5.42% | ||||||||
2013 | 502 | $23.32 | to | $25.47 | $12,367 | 0.93% | 0.00% | to | 0.75% | 41.68% | to | 42.69% | ||||||||
2012 | 504 | $16.46 | to | $17.85 | $8,753 | 0.64% | 0.00% | to | 0.75% | 11.52% | to | 12.41% | ||||||||
Voya International Index Portfolio - Class S | ||||||||||||||||||||
2016 | 1,324 | $16.09 | to | $17.04 | $21,556 | 2.80% | 0.00% | to | 0.75% | -0.19% | to | 0.53% | ||||||||
2015 | 1,404 | $16.12 | to | $16.95 | $22,885 | 2.77% | 0.00% | to | 0.75% | -1.83% | to | -1.05% | ||||||||
2014 | 1,291 | $16.42 | to | $17.13 | $21,322 | 0.69% | 0.00% | to | 0.75% | -6.86% | to | -6.19% | ||||||||
2013 | 1,370 | $17.63 | to | $18.26 | $24,265 | 1.85% | 0.00% | to | 0.75% | 20.18% | to | 21.09% | ||||||||
2012 | 1,184 | $14.67 | to | $15.08 | $17,440 | 2.57% | 0.00% | to | 0.75% | 17.64% | to | 18.46% | ||||||||
Voya Russell™ Large Cap Growth Index Portfolio - Class I | ||||||||||||||||||||
2016 | 1,279 | $27.93 | to | $29.58 | $36,096 | 1.35% | 0.00% | to | 0.75% | 5.76% | to | 6.56% | ||||||||
2015 | 1,560 | $26.41 | to | $27.76 | $41,682 | 1.17% | 0.00% | to | 0.75% | 6.79% | to | 7.60% | ||||||||
2014 | 1,644 | $24.73 | to | $25.80 | $41,042 | 1.30% | 0.00% | to | 0.75% | 12.26% | to | 13.11% | ||||||||
2013 | 1,787 | $22.03 | to | $22.81 | $39,651 | 1.43% | 0.00% | to | 0.75% | 31.05% | to | 32.00% | ||||||||
2012 | 2,036 | $16.81 | to | $17.28 | $34,394 | 1.31% | 0.00% | to | 0.75% | 13.66% | to | 14.51% | ||||||||
Voya Russell™ Large Cap Index Portfolio - Class I | ||||||||||||||||||||
2016 | 208 | $27.29 | to | $28.91 | $5,898 | 1.97% | 0.00% | to | 0.75% | 10.08% | to | 10.94% | ||||||||
2015 | 238 | $24.79 | to | $26.06 | $6,103 | 1.75% | 0.00% | to | 0.75% | 1.35% | to | 2.12% | ||||||||
2014 | 207 | $24.46 | to | $25.52 | $5,216 | 1.45% | 0.00% | to | 0.75% | 12.05% | to | 12.87% | ||||||||
2013 | 162 | $21.83 | to | $22.61 | $3,639 | 1.28% | 0.00% | to | 0.75% | 31.11% | to | 32.07% | ||||||||
2012 | 108 | $16.65 | to | $17.12 | $1,836 | 2.52% | 0.00% | to | 0.75% | 14.67% | to | 15.60% | ||||||||
Voya Russell™ Large Cap Value Index Portfolio - Class I | ||||||||||||||||||||
2016 | 252 | $25.79 | to | $27.32 | $6,644 | 1.75% | 0.00% | to | 0.75% | 14.78% | to | 15.66% | ||||||||
2015 | 249 | $22.47 | to | $23.62 | $5,707 | 1.61% | 0.00% | to | 0.75% | -4.22% | to | -3.51% | ||||||||
2014 | 267 | $23.46 | to | $24.48 | $6,376 | 1.57% | 0.00% | to | 0.75% | 11.61% | to | 12.45% | ||||||||
2013 | 269 | $21.02 | to | $21.77 | $5,756 | 1.50% | 0.00% | to | 0.75% | 30.88% | to | 31.86% | ||||||||
2012 | 358 | $16.06 | to | $16.51 | $5,839 | 2.27% | 0.00% | to | 0.75% | 15.29% | to | 16.19% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya Russell™ Mid Cap Growth Index Portfolio - Class I | ||||||||||||||||||||
2016 | 161 | $28.49 | to | $30.18 | $4,722 | 0.91% | 0.00% | to | 0.75% | 6.31% | to | 7.10% | ||||||||
2015 | 175 | $26.80 | to | $28.18 | $4,822 | 1.02% | 0.00% | to | 0.75% | -1.33% | to | -0.60% | ||||||||
2014 | 146 | $27.16 | to | $28.35 | $4,041 | 0.37% | 0.00% | to | 0.75% | 10.54% | to | 11.44% | ||||||||
2013 | 121 | $24.57 | to | $25.44 | $3,026 | 0.92% | 0.00% | to | 0.75% | 34.26% | to | 35.25% | ||||||||
2012 | 119 | $18.30 | to | $18.81 | $2,212 | 0.65% | 0.00% | to | 0.75% | 14.88% | to | 15.75% | ||||||||
Voya Russell™ Small Cap Index Portfolio - Class I | ||||||||||||||||||||
2016 | 268 | $19.78 | to | $21.11 | $5,501 | 1.14% | 0.00% | to | 0.75% | 20.17% | to | 21.11% | ||||||||
2015 | 220 | $16.46 | to | $17.43 | $3,722 | 1.04% | 0.00% | to | 0.75% | -5.24% | to | -4.55% | ||||||||
2014 | 168 | $17.37 | to | $18.26 | $2,987 | 1.40% | 0.00% | to | 0.75% | 4.14% | to | 4.88% | ||||||||
2013 | 169 | $16.68 | to | $17.41 | $2,879 | 1.11% | 0.00% | to | 0.75% | 37.74% | to | 38.84% | ||||||||
2012 | 190 | $12.11 | to | $12.54 | $2,345 | 1.03% | 0.00% | to | 0.75% | 15.11% | to | 16.00% | ||||||||
Voya Small Company Portfolio - Class S | ||||||||||||||||||||
2016 | 707 | $20.33 | to | $21.38 | $14,765 | 0.15% | 0.00% | to | 0.75% | 23.21% | to | 24.16% | ||||||||
2015 | 545 | $16.50 | to | $17.22 | $9,142 | 0.25% | 0.00% | to | 0.75% | -1.73% | to | -0.98% | ||||||||
2014 | 629 | $16.79 | to | $17.39 | $10,692 | 0.09% | 0.00% | to | 0.75% | 5.46% | to | 6.23% | ||||||||
2013 | 684 | $15.92 | to | $16.37 | $10,998 | 0.29% | 0.00% | to | 0.75% | 36.30% | to | 37.33% | ||||||||
2012 | 776 | $11.68 | to | $11.92 | $9,129 | 0.14% | 0.00% | to | 0.75% | 13.40% | to | 14.29% | ||||||||
Voya U.S. Bond Index Portfolio - Class I | ||||||||||||||||||||
2016 | 554 | $12.83 | to | $13.70 | $7,405 | 2.39% | 0.00% | to | 0.75% | 1.50% | to | 2.32% | ||||||||
2015 | 478 | $12.64 | to | $13.39 | $6,249 | 2.42% | 0.00% | to | 0.75% | -0.47% | to | 0.22% | ||||||||
2014 | 311 | $12.70 | to | $13.36 | $4,078 | 1.90% | 0.00% | to | 0.75% | 4.87% | to | 5.78% | ||||||||
2013 | 309 | $12.11 | to | $12.63 | $3,814 | 1.95% | 0.00% | to | 0.75% | -3.20% | to | -2.55% | ||||||||
2012 | 344 | $12.51 | to | $12.96 | $4,372 | 2.04% | 0.00% | to | 0.75% | 3.05% | to | 3.85% | ||||||||
Voya MidCap Opportunities Portfolio - Class I | ||||||||||||||||||||
2016 | 77 | $27.91 | to | $31.42 | $2,339 | — | 0.00% | to | 0.75% | 6.45% | to | 7.27% | ||||||||
2015 | 83 | $26.22 | to | $29.29 | $2,369 | — | 0.00% | to | 0.75% | -0.23% | to | 0.51% | ||||||||
2014 | 99 | $26.28 | to | $29.14 | $2,800 | 0.36% | 0.00% | to | 0.75% | 8.01% | to | 8.85% | ||||||||
2013 | 106 | $24.33 | to | $26.77 | $2,762 | 0.04% | 0.00% | to | 0.75% | 31.02% | to | 31.94% | ||||||||
2012 | 121 | $18.57 | to | $20.29 | $2,392 | 0.53% | 0.00% | to | 0.75% | 13.30% | to | 14.25% |
Fund | Investment | |||||||||||||||||||
Inception | Units | Unit Fair Value | Net Assets | Income | Expense RatioC | Total ReturnD | ||||||||||||||
DateA | (000's) | (lowest to highest) | (000's) | RatioB | (lowest to highest) | (lowest to highest) | ||||||||||||||
Voya SmallCap Opportunities Portfolio - Class I | ||||||||||||||||||||
2016 | 303 | $21.95 | to | $31.54 | $7,011 | — | 0.00% | to | 0.75% | 12.56% | to | 13.40% | ||||||||
2015 | 316 | $19.50 | to | $27.82 | $6,472 | — | 0.00% | to | 0.75% | -1.66% | to | -0.89% | ||||||||
2014 | 383 | $19.83 | to | $28.07 | $7,902 | — | 0.00% | to | 0.75% | 4.87% | to | 5.62% | ||||||||
2013 | 408 | $18.91 | to | $26.58 | $8,007 | — | 0.00% | to | 0.75% | 38.03% | to | 39.09% | ||||||||
2012 | 399 | $13.70 | to | $19.11 | $5,696 | — | 0.00% | to | 0.75% | 14.26% | to | 15.19% |
(a) | As investment Division had no investments until 2012, this data is not meaningful and is therefore not presented. | ||||||||||||||||||
(b) | As investment Division had no investments until 2013, this data is not meaningful and is therefore not presented. | ||||||||||||||||||
(c) | As investment Division had no investments until 2015, this data is not meaningful and is therefore not presented. | ||||||||||||||||||
A | The Fund Inception Date represents the first date the fund received money. | ||||||||||||||||||
B | The Investment Income Ratio represents dividends received by the Division, excluding capital gains distributions, divided by the average net assets. The recognition of investment income is determined by the timing of the declaration of dividends by the underlying fund in which the Division invests. | ||||||||||||||||||
C | The Expense Ratio considers only the annualized contract expenses borne directly by the Account, excluding expenses charged through the redemption of units, and is equal to the mortality and expense as defined in the Charges and Fees note. Certain items in this table are presented as a range of minimum and maximum values; however, such information is calculated independently for each column in the table. | ||||||||||||||||||
D | Total Return is calculated as the change in unit value for each Policy presented in the Statements of Assets and Liabilities. Certain items in this table are presented as a range of minimum and maximum values; however, such information is calculated independently for each column in the table. |
December 31 | ||||||||
2016 | 2015 | |||||||
(In Thousands) | ||||||||
Admitted Assets | ||||||||
Cash and invested assets: | ||||||||
Bonds | $ | 7,614,953 | $ | 8,151,879 | ||||
Bonds - securities loaned and pledged | 247,404 | 75,972 | ||||||
Preferred stocks | 22,477 | 22,302 | ||||||
Common stocks | 4,682 | 15,348 | ||||||
Subsidiaries | 223,704 | 218,214 | ||||||
Mortgage loans | 1,175,081 | 1,074,089 | ||||||
Contract loans | 1,053,343 | 1,050,613 | ||||||
Derivatives | 115,121 | 89,025 | ||||||
Securities lending collateral | 21,825 | 50,084 | ||||||
Other invested assets | 195,259 | 200,904 | ||||||
Cash and short term investments | 440,723 | 250,876 | ||||||
Total cash and invested assets | 11,114,572 | 11,199,306 | ||||||
Deferred and uncollected premiums, less loading (2016-$1,063; 2015-$1,181) | (206,755 | ) | (132,326 | ) | ||||
Accrued investment income | 109,138 | 112,202 | ||||||
Reinsurance balances recoverable | 744,199 | 578,771 | ||||||
Tax recoverable (including $36,372 and $0 on realized capital losses at | ||||||||
December 31, 2016 and 2015, respectively) | 29,452 | — | ||||||
Indebtedness from related parties | 1,254 | 2,322 | ||||||
Net deferred tax asset | 116,757 | 133,159 | ||||||
Other assets | 28,145 | 21,259 | ||||||
Separate account assets | 1,358,080 | 1,334,359 | ||||||
Total admitted assets | $ | 13,294,842 | $ | 13,249,052 |
December 31 | |||||||||
2016 | 2015 | ||||||||
(In Thousands, except share amounts) | |||||||||
Liabilities and Capital and Surplus | |||||||||
Liabilities: | |||||||||
Policy and contract liabilities: | |||||||||
Life and annuity reserves | $ | 8,413,316 | $ | 8,328,939 | |||||
Accident and health reserves | — | 169,333 | |||||||
Deposit type contracts | 434,474 | 644,678 | |||||||
Policy and contract claims | 389,942 | 153,485 | |||||||
Total policy and contract liabilities | 9,237,732 | 9,296,435 | |||||||
Interest maintenance reserve | 27,608 | 20,057 | |||||||
Accounts payable and accrued expenses | 25,712 | 27,251 | |||||||
Reinsurance balances | 1,275,605 | 1,223,236 | |||||||
Current federal income taxes payable (including $0 and ($28) | |||||||||
on realized capital losses at December 31, 2016 and 2015, respectively) | — | 367 | |||||||
Indebtedness to related parties | 22,458 | 66,310 | |||||||
Asset valuation reserve | 72,726 | 63,430 | |||||||
Net transfers from separate accounts due or accrued | (22,425 | ) | (26,472 | ) | |||||
Derivatives | 70,006 | 91,019 | |||||||
Payable for securities lending | 21,825 | 50,084 | |||||||
Other liabilities | 308,377 | 244,725 | |||||||
Separate account liabilities | 1,358,080 | 1,334,359 | |||||||
Total liabilities | 12,397,704 | 12,390,801 | |||||||
Capital and surplus: | |||||||||
Common stock: authorized 149 shares of $20,000 par value; 144 shares | |||||||||
issued and outstanding | 2,880 | 2,880 | |||||||
Surplus notes | 165,032 | 165,032 | |||||||
Paid in and contributed surplus | 421,175 | 421,175 | |||||||
Unassigned surplus | 308,051 | 269,164 | |||||||
Total capital and surplus | 897,138 | 858,251 | |||||||
Total liabilities and capital and surplus | $ | 13,294,842 | $ | 13,249,052 |
Year ended December 31 | |||||||||||||
2016 | 2015 | 2014 | |||||||||||
(In Thousands) | |||||||||||||
Premiums and other revenues: | |||||||||||||
Life, annuity, and accident and health premiums | $ | 534,865 | $ | 13,877 | $ | (61,208 | ) | ||||||
Net investment income | 532,284 | 567,894 | 584,477 | ||||||||||
Amortization of interest maintenance reserve | (18,795 | ) | (29,491 | ) | (45,062 | ) | |||||||
Commissions, expense allowances and reserve adjustments | |||||||||||||
on reinsurance ceded | 214,835 | 123,709 | (496,032 | ) | |||||||||
Other revenue | 91,620 | 90,133 | 89,347 | ||||||||||
Total premiums and other revenues | 1,354,809 | 766,122 | 71,522 | ||||||||||
Benefits paid or provided: | |||||||||||||
Death benefits | 243,375 | 253,460 | 237,798 | ||||||||||
Annuity benefits | 9,399 | 27,156 | 46,747 | ||||||||||
Disability benefits | 308,712 | 101,995 | 87,861 | ||||||||||
Surrender benefits and withdrawals | 204,354 | 271,886 | 357,758 | ||||||||||
Interest on policy or contract funds | 36,525 | 37,760 | 81,167 | ||||||||||
Other benefits | 1,906 | 1,961 | 1,832 | ||||||||||
Decrease in life and annuity reserves | (83,746 | ) | (536,746 | ) | (498,345 | ) | |||||||
Net transfers from separate accounts | (6,646 | ) | (16,263 | ) | (24,271 | ) | |||||||
Total benefits paid or provided | 713,879 | 141,209 | 290,547 | ||||||||||
Insurance expenses and other deductions: | |||||||||||||
Commissions | 393,141 | 404,567 | (580,510 | ) | |||||||||
General expenses | 89,331 | 79,815 | 78,704 | ||||||||||
Insurance taxes, licenses and fees | 20,333 | 19,718 | 16,531 | ||||||||||
Other deductions | 65,771 | 50,167 | 95,728 | ||||||||||
Total insurance expenses and other deductions | 568,576 | 554,267 | (389,547 | ) | |||||||||
Gain from operations before policyholder dividends, | |||||||||||||
federal income taxes and net realized capital gains (losses) | 72,354 | 70,646 | 170,522 | ||||||||||
Dividends to policyholders | 1,497 | 1,102 | 1,463 | ||||||||||
Gain from operations before federal income taxes | |||||||||||||
and net realized capital gains (losses) | 70,857 | 69,544 | 169,059 | ||||||||||
Federal income tax (benefit) expense | (2,696 | ) | 14,665 | 57,470 | |||||||||
Gain from operations before net realized capital gains (losses) | 73,553 | 54,879 | 111,589 | ||||||||||
Net realized capital gains (losses) | 19,627 | (299,358 | ) | 29,985 | |||||||||
Net income (loss) | $ | 93,180 | $ | (244,479 | ) | $ | 141,574 |
Year ended December 31 | |||||||||||||
2016 | 2015 | 2014 | |||||||||||
(In Thousands) | |||||||||||||
Common stock: | |||||||||||||
Balance at beginning and end of year | $ | 2,880 | $ | 2,880 | $ | 2,880 | |||||||
Surplus notes: | |||||||||||||
Balance at beginning and end of year | 165,032 | 165,032 | 165,032 | ||||||||||
Paid in and contributed surplus: | |||||||||||||
Balance at beginning of year | 421,175 | 551,175 | 551,175 | ||||||||||
Return of capital | — | (130,000 | ) | — | |||||||||
Balance at end of year | 421,175 | 421,175 | 551,175 | ||||||||||
Unassigned surplus: | |||||||||||||
Balance at beginning of year | 269,164 | 409,702 | 314,900 | ||||||||||
Net income (loss) | 93,180 | (244,479 | ) | 141,574 | |||||||||
Change in net unrealized capital gains (losses) | 25,867 | 264,580 | (134,207 | ) | |||||||||
Change in nonadmitted assets | 39,837 | (40,538 | ) | 63,664 | |||||||||
Change in liability for reinsurance in unauthorized companies | 2,034 | (1,599 | ) | 1,707 | |||||||||
Change in asset valuation reserve | (9,296 | ) | (842 | ) | 46,428 | ||||||||
Change in net deferred income tax | (44,283 | ) | 13,836 | 984 | |||||||||
Deferred gain on reinsurance of existing business | — | — | 24,473 | ||||||||||
Amortization of gain on reinsurance | (15,015 | ) | (23,367 | ) | (14,622 | ) | |||||||
Dividends to shareholders | (54,000 | ) | (111,000 | ) | (32,000 | ) | |||||||
Change in pension and other post-employment benefits | 118 | 2,037 | (3,199 | ) | |||||||||
Prior period adjustments | 445 | 834 | — | ||||||||||
Balance at end of year | 308,051 | 269,164 | 409,702 | ||||||||||
Total capital and surplus | $ | 897,138 | $ | 858,251 | $ | 1,128,789 |
Year ended December 31 | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(In Thousands) | ||||||||||||
Operating Activities: | ||||||||||||
Premiums, policy proceeds, and other considerations received, | ||||||||||||
net of reinsurance paid | $ | 617,830 | $ | 646,238 | $ | (58,300 | ) | |||||
Net investment income received | 537,280 | 562,663 | 598,835 | |||||||||
Commissions and expenses (paid) received | (543,299 | ) | (548,457 | ) | 508,933 | |||||||
Benefits paid | (621,231 | ) | (712,347 | ) | (862,415 | ) | ||||||
Net transfers from separate accounts | 10,722 | 21,888 | 30,296 | |||||||||
Dividends paid to policyholders | (1,449 | ) | (1,727 | ) | (1,557 | ) | ||||||
Federal income taxes paid | (3,975 | ) | (29,892 | ) | (31,402 | ) | ||||||
Miscellaneous income (expense) | 293,974 | 230,692 | (706,361 | ) | ||||||||
Net cash provided (used) in operations | 289,852 | 169,058 | (521,971 | ) | ||||||||
Investment Activities: | ||||||||||||
Proceeds from sales, maturities, or repayments of investments: | ||||||||||||
Bonds | 1,351,982 | 983,015 | 2,332,866 | |||||||||
Stocks | 19,181 | 9,896 | 19,380 | |||||||||
Mortgage loans | 102,794 | 192,782 | 162,941 | |||||||||
Other invested assets | 22,009 | 63,888 | 381,918 | |||||||||
Miscellaneous proceeds | 46,920 | 57,142 | 70,023 | |||||||||
Total proceeds from sales, maturities, or repayments of investments | 1,542,886 | 1,306,723 | 2,967,128 | |||||||||
Cost of investments acquired: | ||||||||||||
Bonds | 1,000,533 | 986,497 | 1,170,579 | |||||||||
Stocks | 4,234 | 16,353 | 6,953 | |||||||||
Mortgage loans | 203,796 | 200,741 | 494,994 | |||||||||
Other invested assets | 14,253 | 34,482 | 482,288 | |||||||||
Miscellaneous applications | 68,937 | 72,161 | 70,139 | |||||||||
Total cost of investments acquired | 1,291,753 | 1,310,234 | 2,224,953 | |||||||||
Net (increase) decrease in contract loans | (2,878 | ) | 46,191 | 866 | ||||||||
Net cash provided by investment activities | 248,255 | 42,680 | 743,041 | |||||||||
Financing and Miscellaneous Activities: | ||||||||||||
Other cash provided (applied): | ||||||||||||
Net withdrawals on deposit type contracts | (210,204 | ) | (54,254 | ) | (412,650 | ) | ||||||
Dividends to stockholders | (54,000 | ) | (111,000 | ) | (32,000 | ) | ||||||
Capital and surplus paid in | — | (130,000 | ) | — | ||||||||
Other cash (applied) provided | (84,056 | ) | 31,103 | 177,149 | ||||||||
Net cash used in financing and miscellaneous activities | (348,260 | ) | (264,151 | ) | (267,501 | ) | ||||||
Net decrease (increase) in cash and short term investments | 189,847 | (52,413 | ) | (46,431 | ) | |||||||
Cash and short term investments: | ||||||||||||
Beginning of year | 250,876 | 303,289 | 349,720 | |||||||||
End of year | $ | 440,723 | $ | 250,876 | $ | 303,289 | ||||||
Year ended December 31 | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(In Thousands) | ||||||||||||
Note: Supplemental disclosures of cash flow information for non-cash transactions: | ||||||||||||
Reinsurance recapture | $ | — | $ | 618,705 | $ | — | ||||||
Dividend from subsidiary | — | 308,373 | — |
1. | Organization and Significant Accounting Policies |
• | The length of time and the extent to which the fair value has been below cost. |
• | The financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations or earnings potential. |
• | The Company's intent to sell the security prior to its maturity at an amount below its carrying value. |
• | The Company's intent and ability to hold the security long enough for it to recover its fair value. |
December 31 | |||||||
2016 | 2015 | ||||||
(In Thousands) | |||||||
Net deferred tax asset | $ | 173,944 | $ | 213,193 | |||
Agents' debit balances | 7,318 | 6,398 | |||||
Deferred and uncollected premium | 94 | 67 | |||||
Other | 737 | 2,221 | |||||
Total nonadmitted assets | $ | 182,093 | $ | 221,879 |
2. | Permitted Statutory Basis Accounting Practices |
3. | Investments |
Cost or Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
At December 31, 2016 | |||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 727,762 | $ | 119,659 | $ | 3,010 | $ | 844,411 | |||||||
States, municipalities, and political subdivisions | 358,787 | 13,901 | 8,976 | 363,712 | |||||||||||
Foreign other (par value - $1,296,293) | 1,292,947 | 84,321 | 24,406 | 1,352,862 | |||||||||||
Foreign government (par value - $126,711) | 130,422 | 2,846 | 4,016 | 129,252 | |||||||||||
Corporate securities | 4,386,789 | 341,698 | 61,659 | 4,666,828 | |||||||||||
Residential mortgage backed securities | 521,876 | 125,821 | 5,161 | 642,536 | |||||||||||
Commercial mortgage backed securities | 363,986 | 6,889 | 980 | 369,895 | |||||||||||
Other asset backed securities | 80,997 | 2,774 | 286 | 83,485 | |||||||||||
Total fixed maturities | 7,863,566 | 697,909 | 108,494 | 8,452,981 | |||||||||||
Preferred stocks | 22,477 | 947 | 116 | 23,308 | |||||||||||
Common stocks | 4,682 | — | — | 4,682 | |||||||||||
Total equity securities | 27,159 | 947 | 116 | 27,990 | |||||||||||
Total | $ | 7,890,725 | $ | 698,856 | $ | 108,610 | $ | 8,480,971 | |||||||
At December 31, 2015 | |||||||||||||||
U.S. Treasury securities and obligations of U.S. government corporations and agencies | $ | 776,474 | $ | 129,926 | $ | 2,236 | $ | 904,164 | |||||||
States, municipalities, and political subdivisions | 193,448 | 13,796 | 2,131 | 205,113 | |||||||||||
Foreign other (par value - $1,375,080) | 1,374,016 | 64,918 | 88,724 | 1,350,210 | |||||||||||
Foreign government (par value - $120,430) | 125,794 | 2,023 | 7,740 | 120,077 | |||||||||||
Corporate securities | 4,347,426 | 234,680 | 174,290 | 4,407,816 | |||||||||||
Residential mortgage backed securities | 616,258 | 159,191 | 7,131 | 768,318 | |||||||||||
Commercial mortgage backed securities | 741,155 | 16,687 | 1,539 | 756,303 | |||||||||||
Other asset backed securities | 54,371 | 2,335 | 1,302 | 55,404 | |||||||||||
Total fixed maturities | 8,228,942 | 623,556 | 285,093 | 8,567,405 | |||||||||||
Preferred stocks | 22,302 | 298 | 206 | 22,394 | |||||||||||
Common stocks | 15,348 | — | — | 15,348 | |||||||||||
Total equity securities | 37,650 | 298 | 206 | 37,742 | |||||||||||
Total | $ | 8,266,592 | $ | 623,854 | $ | 285,299 | $ | 8,605,147 |
December 31 | |||||||
2016 | 2015 | ||||||
(In Thousands) | |||||||
Cost or amortized cost | $ | 7,863,566 | $ | 8,228,942 | |||
Adjustment for below investment grade bonds | (1,209 | ) | (1,091 | ) | |||
Carrying value | $ | 7,862,357 | $ | 8,227,851 |
Less than 6 Months Below Cost | More than 6 Months and Less than 12 Months Below Cost | More than 12 Months Below Cost | Total | ||||||||||||
(In Thousands) | |||||||||||||||
At December 31, 2016 | |||||||||||||||
Fair value | $ | 1,832,798 | $ | 31,182 | $ | 376,138 | $ | 2,240,118 | |||||||
Unrealized loss | 71,878 | 1,796 | 34,820 | 108,494 | |||||||||||
At December 31, 2015 | |||||||||||||||
Fair value | $ | 1,283,549 | $ | 1,402,471 | $ | 251,519 | $ | 2,937,539 | |||||||
Unrealized loss | 55,971 | 159,167 | 69,955 | 285,093 |
Amortized Cost | Fair Value | |||||||
(In Thousands) | ||||||||
Maturity: | ||||||||
Due in 1 year or less | $ | 140,640 | $ | 138,303 | ||||
Due after 1 year through 5 years | 648,185 | 677,520 | ||||||
Due after 5 years through 10 years | 866,356 | 889,059 | ||||||
Due after 10 years | 5,241,526 | 5,652,183 | ||||||
6,896,707 | 7,357,065 | |||||||
Residential mortgage backed securities | 521,876 | 642,536 | ||||||
Commercial mortgage backed securities | 363,986 | 369,895 | ||||||
Other asset backed securities | 80,997 | 83,485 | ||||||
Total | $ | 7,863,566 | $ | 8,452,981 |
Actual Cost | Book/Adjusted Carrying Value (Excluding Interest) | Fair Value | Other Than Temporary Impairment Losses Recognized | ||||||||||||
(In Thousands) | |||||||||||||||
December 31, 2016 | |||||||||||||||
Residential mortgage backed securities | $ | 44,604 | $ | 36,745 | $ | 39,834 | $ | 447 | |||||||
Structured securities | 174,722 | 123,124 | 143,009 | 568 | |||||||||||
Total | $ | 219,326 | $ | 159,869 | $ | 182,843 | $ | 1,015 | |||||||
December 31, 2015 | |||||||||||||||
Residential mortgage backed securities | $ | 58,883 | $ | 48,406 | $ | 52,789 | $ | 126 | |||||||
Structured securities | 267,626 | 207,527 | 230,980 | 326 | |||||||||||
Total | $ | 326,509 | $ | 255,933 | $ | 283,769 | $ | 452 | |||||||
December 31, 2014 | |||||||||||||||
Residential mortgage backed securities | $ | 64,287 | $ | 56,413 | $ | 62,294 | $ | 365 | |||||||
Structured securities | 321,367 | 242,876 | 270,103 | — | |||||||||||
Total | $ | 385,654 | $ | 299,289 | $ | 332,397 | $ | 365 |
CUSIP Identification | Actual Cost | Fair Value | Book/Adjusted Carrying Value | Mortgage-Referenced Security (Y/N) | ||||||||||
(In Thousands) | ||||||||||||||
026874BS5 | $ | 7,416 | $ | 8,988 | $ | 7,401 | N | |||||||
03938LAS3 | 9,918 | 10,688 | 10,108 | N | ||||||||||
25156PAC7 | 4,545 | 5,397 | 4,352 | N | ||||||||||
416515AW4 | 2,398 | 2,565 | 2,398 | N | ||||||||||
53079EAR5 | 978 | 1,500 | 978 | N | ||||||||||
89352HAC3 | 5,071 | 4,163 | 5,003 | N | ||||||||||
903312AA4 | 1,638 | 2,200 | 1,716 | N | ||||||||||
98877CAA5 | 5,000 | 5,013 | 5,000 | N | ||||||||||
3137G0AY5 | 8,772 | 9,342 | 8,801 | Y | ||||||||||
3137G0BK4 | 3,637 | 4,175 | 3,692 | Y | ||||||||||
3137G0CU1 | 2,186 | 2,453 | 2,206 | Y | ||||||||||
30711XAF1 | 9,916 | 10,861 | 10,034 | Y | ||||||||||
30711XAH7 | 11,586 | 12,642 | 11,738 | Y | ||||||||||
30711XAK0 | 11,393 | 12,750 | 11,564 | Y | ||||||||||
30711XAT1 | 5,284 | 5,462 | 5,282 | Y | ||||||||||
30711XAX2 | 4,330 | 4,676 | 4,355 | Y | ||||||||||
Total | $ | 94,068 | $ | 102,875 | $ | 94,628 | XXX |
CUSIP Identification | Actual Cost | Fair Value | Book/Adjusted Carrying Value | Mortgage-Referenced Security (Y/N) | ||||||||||
(In Thousands) | ||||||||||||||
001957BD0 | $ | 3,985 | $ | 4,590 | $ | 3,903 | N | |||||||
026874BS5 | 7,416 | 9,450 | 7,405 | N | ||||||||||
03938LAS3 | 12,893 | 8,791 | 12,927 | N | ||||||||||
25156PAC7 | 4,545 | 5,127 | 4,381 | N | ||||||||||
37247DAG1 | 360 | 810 | 371 | N | ||||||||||
416515AW4 | 2,398 | 2,640 | 2,398 | N | ||||||||||
53079EAR5 | 978 | 1,490 | 978 | N | ||||||||||
749769AA3 | 7,999 | 8,130 | 7,999 | N | ||||||||||
89352HAC3 | 5,071 | 3,750 | 5,020 | N | ||||||||||
903312AA4 | 1,638 | 2,250 | 1,716 | N | ||||||||||
96122CAA2 | 4,753 | 5,025 | 4,696 | N | ||||||||||
98877CAA5 | 5,000 | 5,113 | 5,000 | N | ||||||||||
EF3202449 | 13,593 | 13,799 | 13,537 | N | ||||||||||
Total | $ | 70,629 | $ | 70,965 | $ | 70,331 | XXX |
Residential | Commercial | ||||||||||||||||||||||||||
Farm | Insured | All Other | Insured | All Other | Mezzanine | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Recorded investment (all) | |||||||||||||||||||||||||||
Current | $ | — | $ | — | $ | — | $ | — | $ | 1,175,081 | $ | — | $ | 1,175,081 | |||||||||||||
30-59 Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
60-89 Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
90-179 Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
180+ Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
Accruing Interest 90-179 Days Past Due | |||||||||||||||||||||||||||
Recorded Investment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Interest Accrued | — | — | — | — | — | — | — | ||||||||||||||||||||
Accruing Interest 180+ Days Past Due | |||||||||||||||||||||||||||
Recorded Investment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Interest Accrued | — | — | — | — | — | — | — | ||||||||||||||||||||
Interest Reduced | |||||||||||||||||||||||||||
Recorded Investment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Number of Loans | — | — | — | — | — | — | — | ||||||||||||||||||||
Percent Reduced | — | % | — | % | — | % | — | % | — | % | — | % | — | % | |||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
Recorded investment (all) | |||||||||||||||||||||||||||
Current | $ | — | $ | — | $ | — | $ | — | $ | 1,074,089 | $ | — | $ | 1,074,089 | |||||||||||||
30-59 Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
60-89 Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
90-179 Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
180+ Days Past Due | — | — | — | — | — | — | — | ||||||||||||||||||||
Accruing Interest 90-179 Days Past Due | |||||||||||||||||||||||||||
Recorded Investment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Interest Accrued | — | — | — | — | — | — | — | ||||||||||||||||||||
Accruing Interest 180+ Days Past Due | |||||||||||||||||||||||||||
Recorded Investment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Interest Accrued | — | — | — | — | — | — | — | ||||||||||||||||||||
Interest Reduced | |||||||||||||||||||||||||||
Recorded Investment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Number of Loans | — | — | — | — | — | — | — | ||||||||||||||||||||
Percent Reduced | — | % | — | % | — | % | — | % | — | % | — | % | — | % |
Residential | Commercial | ||||||||||||||||||||||||||
Farm | Insured | All Other | Insured | All Other | Mezzanine | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
With Allowance for Credit Losses | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
No Allowance for Credit Losses | — | — | — | — | — | — | — | ||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
With Allowance for Credit Losses | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
No Allowance for Credit Losses | — | — | — | — | 735 | — | 735 |
Residential | Commercial | ||||||||||||||||||||||||||
Farm | Insured | All Other | Insured | All Other | Mezzanine | Total | |||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||||||
Average recorded investment | $ | — | $ | — | $ | — | $ | — | $ | 367 | $ | — | $ | 367 | |||||||||||||
Interest income recognized | — | — | — | — | 2 | — | 2 | ||||||||||||||||||||
Recorded Investments on nonaccrual status | — | — | — | — | — | — | — | ||||||||||||||||||||
Amount of interest income recognized using a cash-basis method of accounting | — | — | — | — | 6 | — | 6 | ||||||||||||||||||||
December 31, 2015 | |||||||||||||||||||||||||||
Average recorded investment | $ | — | $ | — | $ | — | $ | — | $ | 2,072 | $ | — | $ | 2,072 | |||||||||||||
Interest income recognized | — | — | — | — | 100 | — | 100 | ||||||||||||||||||||
Recorded Investments on nonaccrual status | — | — | — | — | — | — | — | ||||||||||||||||||||
Amount of interest income recognized using a cash-basis method of accounting | — | — | — | — | 112 | — | 112 | ||||||||||||||||||||
December 31, 2014 | |||||||||||||||||||||||||||
Average recorded investment | $ | — | $ | — | $ | — | $ | — | $ | 4,049 | $ | — | $ | 4,049 | |||||||||||||
Interest income recognized | — | — | — | — | 224 | — | 224 | ||||||||||||||||||||
Recorded Investments on nonaccrual status | — | — | — | — | — | — | — | ||||||||||||||||||||
Amount of interest income recognized using a cash-basis method of accounting | — | — | — | — | 208 | — | 208 |
December 31 | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(In Thousands) | ||||||||||||
Realized capital (losses) gains | $ | (13,435 | ) | $ | (318,532 | ) | $ | 22,340 | ||||
Amount transferred to IMR (net of related taxes of | ||||||||||||
$(5,191) in 2016, $(11,592) in 2015, and $4,854 in 2014) | 9,641 | 21,528 | (9,015 | ) | ||||||||
Federal income tax benefit (expense) | 23,421 | (2,354 | ) | 16,660 | ||||||||
Net realized capital gains (losses) | $ | 19,627 | $ | (299,358 | ) | $ | 29,985 |
Amortized Cost Basis Before Other-than-Temporary Impairment | Other-than-Temporary Impairment Recognized | ||||||||||||||
Interest | Non-interest | Fair Value | |||||||||||||
(In Thousands) | |||||||||||||||
First quarter: | |||||||||||||||
Aggregate intent to sell | $ | 2 | $ | — | $ | — | $ | 2 | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total first quarter | $ | 2 | $ | — | $ | — | $ | 2 | |||||||
Second quarter: | |||||||||||||||
Aggregate intent to sell | $ | 2 | $ | 1 | $ | — | $ | 1 | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total second quarter | $ | 2 | $ | 1 | $ | — | $ | 1 | |||||||
Third quarter: | |||||||||||||||
Aggregate intent to sell | $ | 3,787 | $ | 1,887 | $ | — | $ | 1,900 | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total third quarter | $ | 3,787 | $ | 1,887 | $ | — | $ | 1,900 | |||||||
Fourth quarter: | |||||||||||||||
Aggregate intent to sell | $ | 196 | $ | 59 | $ | — | $ | 137 | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total fourth quarter | $ | 196 | $ | 59 | $ | — | $ | 137 | |||||||
Total | N/A | $ | 1,947 | $ | — | N/A |
Amortized Cost Basis Before Other-than-Temporary Impairment | Other-than-Temporary Impairment Recognized | ||||||||||||||
Interest | Non-interest | Fair Value | |||||||||||||
(In Thousands) | |||||||||||||||
First quarter: | |||||||||||||||
Aggregate intent to sell | $ | — | $ | — | $ | — | $ | — | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total first quarter | $ | — | $ | — | $ | — | $ | — | |||||||
Second quarter: | |||||||||||||||
Aggregate intent to sell | $ | 1 | $ | — | $ | — | $ | 1 | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total second quarter | $ | 1 | $ | — | $ | — | $ | 1 | |||||||
Third quarter: | |||||||||||||||
Aggregate intent to sell | $ | 503 | $ | 122 | $ | — | $ | 381 | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total third quarter | $ | 503 | $ | 122 | $ | — | $ | 381 | |||||||
Fourth quarter: | |||||||||||||||
Aggregate intent to sell | $ | — | $ | — | $ | — | $ | — | |||||||
Aggregate inability or lack of intent to hold to recovery | — | — | — | — | |||||||||||
Total fourth quarter | $ | — | $ | — | $ | — | $ | — | |||||||
Total | N/A | $ | 122 | $ | — | N/A |
CUSIP | Book/Adjusted Carrying Value Amortized Cost Before Current Period OTTI | Present Value of Projected Cash Flows | Recognized Other-Than-Temporary Impairment | Amortized Cost After Other-Than-Temporary Impairment | Fair Value at Time of OTTI | Date of Financial Statement Where Reported | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
12668AKU8 | $ | 2,179 | $ | 2,169 | $ | 11 | $ | 2,169 | $ | 2,106 | 3/31/2016 | |||||||||||
12669FXP3 | 197 | 180 | 17 | 180 | 180 | 3/31/2016 | ||||||||||||||||
12669GUX7 | 92 | 89 | 3 | 89 | 89 | 3/31/2016 | ||||||||||||||||
16165MAD0 | 807 | 785 | 23 | 785 | 662 | 3/31/2016 | ||||||||||||||||
17311YAB9 | 7,685 | 7,117 | 568 | 7,117 | 7,117 | 3/31/2016 | ||||||||||||||||
2254582C1 | 1,304 | 1,267 | 37 | 1,267 | 1,267 | 3/31/2016 | ||||||||||||||||
225458X45 | 9,618 | 9,501 | 117 | 9,501 | 9,501 | 3/31/2016 | ||||||||||||||||
45660LSP5 | 610 | 604 | 6 | 604 | 517 | 3/31/2016 | ||||||||||||||||
751155AN2 | 440 | 438 | 2 | 438 | 358 | 3/31/2016 | ||||||||||||||||
86358RTY3 | 65 | 63 | 2 | 63 | 63 | 3/31/2016 | ||||||||||||||||
86359DMZ7 | 268 | 264 | 5 | 264 | 263 | 3/31/2016 | ||||||||||||||||
93934NAA3 | 481 | 477 | 5 | 477 | 452 | 3/31/2016 | ||||||||||||||||
12668BCH4 | 2,398 | 2,335 | 64 | 2,335 | 2,110 | 6/30/2016 | ||||||||||||||||
12669FXP3 | 168 | 163 | 5 | 163 | 163 | 6/30/2016 | ||||||||||||||||
2254582C1 | 1,194 | 1,184 | 11 | 1,184 | 1,184 | 6/30/2016 | ||||||||||||||||
225458X45 | 8,394 | 8,177 | 217 | 8,177 | 8,177 | 6/30/2016 | ||||||||||||||||
45660LSP5 | 587 | 574 | 13 | 574 | 494 | 6/30/2016 | ||||||||||||||||
751155AN2 | 428 | 421 | 7 | 421 | 339 | 6/30/2016 | ||||||||||||||||
86359DMZ7 | 234 | 233 | — | 233 | 233 | 6/30/2016 | ||||||||||||||||
93934NAA3 | 459 | 453 | 6 | 453 | 430 | 6/30/2016 | ||||||||||||||||
12668BCH4 | 2,249 | 2,186 | 63 | 2,186 | 2,104 | 9/30/2016 | ||||||||||||||||
225458PN2 | 126 | 126 | 1 | 126 | 109 | 9/30/2016 | ||||||||||||||||
45660LSP5 | 551 | 540 | 11 | 540 | 480 | 9/30/2016 | ||||||||||||||||
751155AN2 | 401 | 397 | 4 | 397 | 328 | 9/30/2016 | ||||||||||||||||
76110HCB3 | 161 | 159 | 3 | 159 | 159 | 9/30/2016 | ||||||||||||||||
761118CX4 | 478 | 472 | 6 | 472 | 439 | 9/30/2016 | ||||||||||||||||
93934FBD3 | 825 | 816 | 10 | 816 | 722 | 9/30/2016 | ||||||||||||||||
93934FJR4 | 3 | 3 | — | 3 | 1 | 9/30/2016 | ||||||||||||||||
93934NAA3 | 441 | 429 | 12 | 429 | 413 | 9/30/2016 | ||||||||||||||||
12668BCH4 | 2,045 | 1,961 | 84 | 1,961 | 1,926 | 12/31/2016 | ||||||||||||||||
12669FXP3 | 134 | 133 | — | 133 | 133 | 12/31/2016 | ||||||||||||||||
225458PN2 | 120 | 118 | 2 | 118 | 104 | 12/31/2016 | ||||||||||||||||
225458X45 | 8,005 | 7,974 | 31 | 7,974 | 7,974 | 12/31/2016 | ||||||||||||||||
225470RU9 | 210 | 208 | 2 | 208 | 208 | 12/31/2016 | ||||||||||||||||
45660LSP5 | 528 | 517 | 11 | 517 | 462 | 12/31/2016 |
CUSIP | Book/Adjusted Carrying Value Amortized Cost Before Current Period OTTI | Present Value of Projected Cash Flows | Recognized Other-Than-Temporary Impairment | Amortized Cost After Other-Than-Temporary Impairment | Fair Value at Time of OTTI | Date of Financial Statement Where Reported | ||||||||||||||||
(In Thousands) | ||||||||||||||||||||||
751155AN2 | 381 | 379 | 2 | 379 | 327 | 12/31/2016 | ||||||||||||||||
76110HCB3 | 123 | 121 | 2 | 121 | 121 | 12/31/2016 | ||||||||||||||||
86359DMZ7 | 185 | 177 | 8 | 177 | 177 | 12/31/2016 | ||||||||||||||||
93934FBD3 | 754 | 743 | 11 | 743 | 670 | 12/31/2016 | ||||||||||||||||
93934FJR4 | 2 | 1 | — | 1 | 1 | 12/31/2016 | ||||||||||||||||
Total | $ | 1,382 |
December 31, 2016 | |||||||
Aggregate Amount of Unrealized Losses | Aggregate Fair Value of Securities with Unrealized Losses | ||||||
(In Thousands) | |||||||
Less than 12 months | $ | 3,258 | $ | 191,743 | |||
Greater than 12 months | 3,168 | 60,968 | |||||
Total | $ | 6,426 | $ | 252,711 |
December 31, 2015 | |||||||
Aggregate Amount of Unrealized Losses | Aggregate Fair Value of Securities with Unrealized Losses | ||||||
(In Thousands) | |||||||
Less than 12 months | $ | 3,461 | $ | 233,888 | |||
Greater than 12 months | 6,511 | 99,306 | |||||
Total | $ | 9,972 | $ | 333,195 |
Description | Amount of Impairment | |||||||||||
2016 | 2015 | 2014 | ||||||||||
(In Thousands) | ||||||||||||
AUDAX MEZZANINE FUND, LP PRVT | $ | — | $ | — | $ | 60 | ||||||
EIG ENERGY FUND XIV LP | 1,928 | — | — | |||||||||
ENERGY CAPITAL PARTNERS, LP PRVT | 1,977 | 826 | — | |||||||||
GREEN MOUNTAIN INVESTORS II, LP PRVT | — | — | 12 | |||||||||
PRUDENTIAL CAPITAL PARTNERS, LP PRVT | 5 | — | — | |||||||||
TCW/CRESENT MEZZANINE PARTNERS III PRVT | 88 | — | — | |||||||||
TCW FUND XIV LP PRVT | — | 1,716 | — | |||||||||
TENASKA POWER FUND, L.P. PRVT | 2,259 | 3,146 | — | |||||||||
Total | $ | 6,257 | $ | 5,688 | $ | 72 |
Year ended December 31 | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
(In Thousands) | ||||||||||||
Income: | ||||||||||||
Equity securities | $ | 2,105 | $ | 1,748 | $ | 1,800 | ||||||
Bonds | 453,427 | 475,064 | 505,789 | |||||||||
Mortgage loans | 55,971 | 66,704 | 53,259 | |||||||||
Derivatives | (23,150 | ) | (22,228 | ) | (29,207 | ) | ||||||
Contract loans | 53,006 | 50,687 | 53,785 | |||||||||
Other | 8,305 | 14,216 | 20,137 | |||||||||
Total investment income | 549,664 | 586,191 | 605,563 | |||||||||
Investment expenses | (17,380 | ) | (18,297 | ) | (21,086 | ) | ||||||
Net investment income | $ | 532,284 | $ | 567,894 | $ | 584,477 |
At December 31, 2016 | At December 31, 2015 | ||||||||||||||
Repurchase Agreements | Securities Lending | Repurchase Agreements | Securities Lending | ||||||||||||
(In Thousands) | |||||||||||||||
Open | $ | — | $ | 21,825 | $ | — | $ | 50,084 | |||||||
30 days or less | — | — | — | — | |||||||||||
31 to 60 days | — | — | — | — | |||||||||||
61 to 90 days | — | — | — | — | |||||||||||
Greater than 90 days | — | — | — | — | |||||||||||
Securities received | — | — | — | ||||||||||||
Total collateral received | $ | — | $ | 21,825 | $ | — | $ | 50,084 |
Repurchase Agreements | Securities Lending | ||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||
(In Thousands) | |||||||||||||||
At December 31, 2016 | |||||||||||||||
Open | $ | — | $ | — | $ | — | $ | — | |||||||
30 days or less | — | — | 16,935 | 16,935 | |||||||||||
31 to 60 days | — | — | 1,619 | 1,620 | |||||||||||
61 to 90 days | — | — | 705 | 706 | |||||||||||
91 to 120 days | — | — | — | — | |||||||||||
121 to 180 days | — | — | 2,566 | 2,567 | |||||||||||
181 to 365 days | — | — | — | — | |||||||||||
1 to 2 years | — | — | — | — | |||||||||||
2 to 3 years | — | — | — | — | |||||||||||
Greater than 3 years | — | — | — | — | |||||||||||
Securities received | — | — | — | — | |||||||||||
Total collateral reinvested | $ | — | $ | — | $ | 21,825 | $ | 21,828 | |||||||
At December 31, 2015 | |||||||||||||||
Open | $ | — | $ | — | $ | — | $ | — | |||||||
30 days or less | — | — | 49,642 | 49,642 | |||||||||||
31 to 60 days | — | — | — | — | |||||||||||
61 to 90 days | — | — | — | — | |||||||||||
91 to 120 days | — | — | — | — | |||||||||||
121 to 180 days | — | — | 448 | 448 | |||||||||||
181 to 365 days | — | — | — | — | |||||||||||
1 to 2 years | — | — | — | — | |||||||||||
2 to 3 years | — | — | — | — | |||||||||||
Greater than 3 years | — | — | — | — | |||||||||||
Securities received | — | — | — | — | |||||||||||
Total collateral reinvested | $ | — | $ | — | $ | 50,090 | $ | 50,090 |
2016 | 2015 | |||||||||||||||||||||||
General Account | Separate Account | Total | General Account | Separate Account | Total | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
Membership stock - Class A | $ | 500 | $ | — | $ | 500 | $ | 500 | $ | — | $ | 500 | ||||||||||||
Activity stock | 4,000 | — | 4,000 | 14,575 | — | 14,575 | ||||||||||||||||||
Excess stock | 182 | — | 182 | 273 | — | 273 | ||||||||||||||||||
Aggregate total | $ | 4,682 | $ | — | $ | 4,682 | $ | 15,348 | $ | — | $ | 15,348 |
Amount Pledged at End of Reporting Period | Maximum Amount Pledged During Reporting Period | |||||||||||||||||||||||
Fair Value | Carrying Value | Aggregate Total Borrowing | Fair Value | Carrying Value | Aggregate Total Borrowing | |||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||
As of December 31, 2016 | ||||||||||||||||||||||||
General account | $ | 169,814 | $ | 157,079 | $ | 100,000 | $ | 436,469 | $ | 362,657 | $ | 335,000 | ||||||||||||
Separate account | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 169,814 | $ | 157,079 | $ | 100,000 | $ | 436,469 | $ | 362,657 | $ | 335,000 | ||||||||||||
As of December 31, 2015 | ||||||||||||||||||||||||
General account | $ | 432,559 | $ | 365,777 | $ | 335,000 | $ | 521,113 | $ | 433,213 | $ | 400,000 | ||||||||||||
Separate account | — | — | — | — | — | — | ||||||||||||||||||
Total | $ | 432,559 | $ | 365,777 | $ | 335,000 | $ | 521,113 | $ | 433,213 | $ | 400,000 |
General Account | Separate Account | Total | Funding Agreements Reserves Established | |||||||||||||
(In Thousands) | ||||||||||||||||
As of December 31, 2016 | ||||||||||||||||
Debt | $ | — | $ | — | $ | — | XXX | |||||||||
Funding agreements | 100,000 | — | 100,000 | $ | 97,644 | |||||||||||
Other | — | — | — | XXX | ||||||||||||
Aggregate total | $ | 100,000 | $ | — | $ | 100,000 | $ | 97,644 | ||||||||
As of December 31, 2015 | ||||||||||||||||
Debt | $ | — | $ | — | $ | — | XXX | |||||||||
Funding agreements | 335,000 | — | 335,000 | $ | 313,109 | |||||||||||
Other | — | — | — | XXX | ||||||||||||
Aggregate total | $ | 335,000 | $ | — | $ | 335,000 | $ | 313,109 |
Gross (Admitted & Nonadmitted) Restricted | ||||||||||||||||||||||||||||||||||
General Account | Total Assets | Total From Prior Year | Increase/(Decrease) | Total Nonadmitted Restricted | Total Admitted Restricted | Gross (Admitted & Nonadmitted) Restricted to Total Assets | Admitted Restricted to Total Admitted Assets | |||||||||||||||||||||||||||
Restricted Asset Category | Total Assets | Supporting Separate Account Activity* | ||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||
Subject to contractual obligation for which liability is not shown | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | — | % | — | % | ||||||||||||||||
Collateral held under security lending agreements | 229,586 | — | 229,586 | 55,785 | 173,801 | — | 229,586 | 1.7 | % | 1.7 | % | |||||||||||||||||||||||
Subject to repurchase agreements | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
Subject to reverse repurchase agreements | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
Subject to dollar repurchase agreements | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
Subject to dollar reverse repurchase agreements | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
Placed under option contracts | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
Letter stock or securities restricted as to sale-excluding FHLB capital stock | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
FHLB capital stock | 4,682 | — | 4,682 | 15,348 | (10,666 | ) | 4,682 | — | % | — | % | |||||||||||||||||||||||
On deposit with states | 25,764 | — | 25,764 | 26,172 | (408 | ) | — | 25,764 | 0.2 | % | 0.2 | % | ||||||||||||||||||||||
On deposit with other regulatory bodies | — | — | — | — | — | — | — | — | % | — | % | |||||||||||||||||||||||
Pledged as collateral to FHLB (including assets backing funding agreements) | 157,079 | — | 157,079 | 365,777 | (208,698 | ) | 157,079 | 1.2 | % | 1.2 | % | |||||||||||||||||||||||
Derivative pledged collateral | 17,818 | — | 17,818 | 20,188 | (2,370 | ) | — | 17,818 | 0.1 | % | 0.1 | % | ||||||||||||||||||||||
Total Restricted Assets | $ | 434,929 | $ | — | $ | 434,929 | $ | 483,270 | $ | (48,341 | ) | $ | — | $ | 434,929 | 3.2 | % | 3.2 | % | |||||||||||||||
* Subset of Total General Account Gross Restricted Assets |
Gross (Admitted & Nonadmitted) Restricted | ||||||||||||||||||||||||||||||||||
General Account | Total Assets | Total From Prior Year | Increase/(Decrease) | Total Nonadmitted Restricted | Total Admitted Restricted | Gross (Admitted & Nonadmitted) Restricted to Total Assets | Admitted Restricted to Total Admitted Assets | |||||||||||||||||||||||||||
Restricted Asset Category | Total Assets | Supporting Separate Account Activity* | ||||||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||
Subject to contractual obligation for which liability is not shown | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | 0.0 | % | 0.0 | % | ||||||||||||||||
Collateral held under security lending agreements | 55,785 | — | 55,785 | 64,193 | (8,408 | ) | — | 55,785 | 0.4 | % | 0.4 | % | ||||||||||||||||||||||
Subject to repurchase agreements | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
Subject to reverse repurchase agreements | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
Subject to dollar repurchase agreements | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
Subject to dollar reverse repurchase agreements | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
Placed under option contracts | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
Letter stock or securities restricted as to sale - excluding FHLB capital stock | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
FHLB capital stock | 15,348 | — | 15,348 | 18,317 | (2,969 | ) | — | 15,348 | 0.1 | % | 0.1 | % | ||||||||||||||||||||||
On deposit with states | 26,172 | — | 26,172 | 26,401 | (229 | ) | — | 26,172 | 0.2 | % | 0.2 | % | ||||||||||||||||||||||
On deposit with other regulatory bodies | — | — | — | — | — | — | — | 0.0 | % | 0.0 | % | |||||||||||||||||||||||
Pledged as collateral to FHLB (including assets backing funding agreements) | 365,777 | — | 365,777 | 404,050 | (38,273 | ) | — | 365,777 | 2.7 | % | 2.8 | % | ||||||||||||||||||||||
Derivative pledged collateral | 20,188 | — | 20,188 | 35,832 | (15,644 | ) | — | 20,188 | 0.1 | % | 0.2 | % | ||||||||||||||||||||||
Total restricted assets | $ | 483,270 | $ | — | $ | 483,270 | $ | 548,793 | $ | (65,523 | ) | $ | — | $ | 483,270 | 3.5 | % | 3.7 | % | |||||||||||||||
* Subset of Total General Account Gross Restricted Assets |
Collateral Assets | Book/Adjusted Carrying Value (BACV) | Fair Value | % of BACV to Total Assets (Admitted and Nonadmitted)* | % of BACV to Total Admitted Assets** | ||||||||||
(In Thousands) | ||||||||||||||
Cash | $ | 81,925 | $ | 81,925 | 0.68 | % | 0.69 | % | ||||||
Reinvested collateral assets owned | 21,825 | 21,828 | 0.18 | % | 0.18 | % | ||||||||
Total collateral Assets | $ | 103,750 | $ | 103,753 | 0.86 | % | 0.87 | % | ||||||
*BACV divided by total assets excluding Separate Accounts | ||||||||||||||
**BACV divided by total admitted assets excluding Separate Accounts | ||||||||||||||
Amount | % of Liability to Total Liabilities* | |||||||||||||
(In Thousands) | ||||||||||||||
Recognized obligation to return collateral asset | $ | 103,750 | 0.94 | % | ||||||||||
*BACV divided by total liabilities excluding Separate Account |
Collateral Assets | Book/Adjusted Carrying Value (BACV) | Fair Value | % of BACV to Total Assets (Admitted and Nonadmitted)* | % of BACV to Total Admitted Assets** | ||||||||||
(In Thousands) | ||||||||||||||
Cash | $ | 51,963 | $ | 51,963 | 0.43 | % | 0.44 | % | ||||||
Reinvested collateral assets owned | 50,084 | 50,090 | 0.41 | % | 0.42 | % | ||||||||
Total collateral Assets | $ | 102,047 | $ | 102,054 | 0.84 | % | 0.86 | % | ||||||
*BACV divided by total assets excluding Separate Accounts | ||||||||||||||
**BACV divided by total admitted assets excluding Separate Accounts | ||||||||||||||
Amount | % of Liability to Total Liabilities* | |||||||||||||
(In Thousands) | ||||||||||||||
Recognized obligation to return collateral asset | $ | 102,047 | 0.92 | % | ||||||||||
*BACV divided by total liabilities excluding Separate Account |
4. | Derivative Financial Instruments Held for Purposes Other than Trading |
As of December 31, 2016 | As of December 31, 2015 | |||||||
Collateral Type: | (In Thousands) | |||||||
Cash | ||||||||
Held- OTC Contracts | $ | 76,709 | $ | 48,020 | ||||
Held- Cleared Contracts | 5,216 | 3,943 | ||||||
Securities | ||||||||
Delivered | 17,818 | 20,188 |
Notional Amount | Carrying Value | Fair Value | |||||||||
(In Thousands) | |||||||||||
December 31, 2016 | |||||||||||
Derivative contracts: | |||||||||||
Credit contracts | $ | 344,000 | $ | 2,534 | $ | 4,532 | |||||
Equity contracts | 606,160 | 90,539 | 90,540 | ||||||||
Foreign exchange contracts | 101,879 | (96 | ) | 4,705 | |||||||
Interest rate contracts | 2,215,006 | 5,962 | (8,492 | ) | |||||||
Total return swaps | 881,214 | (53,824 | ) | (53,824 | ) | ||||||
Total derivatives | $ | 4,148,259 | $ | 45,115 | $ | 37,461 | |||||
December 31, 2015 | |||||||||||
Derivative contracts: | |||||||||||
Credit contracts | $ | 125,000 | $ | 146 | $ | 1,374 | |||||
Equity contracts | 452,754 | 60,260 | 60,260 | ||||||||
Foreign exchange contracts | 103,086 | 56 | 5,058 | ||||||||
Interest rate contracts | 2,956,301 | 2,466 | (18,195 | ) | |||||||
Total return swaps | 837,494 | (64,922 | ) | (64,922 | ) | ||||||
Total derivatives | $ | 4,474,635 | $ | (1,994 | ) | $ | (16,425 | ) |
5. | Concentrations of Credit Risk |
2016 | 2015 | |||||||||||||
Carrying Value | % | Carrying Value | % | |||||||||||
(In Thousands) | (In Thousands) | |||||||||||||
Origination Loan-to-Value | ||||||||||||||
0% - 50% | $ | 168,503 | 14.3 | % | $ | 186,933 | 17.4 | % | ||||||
50% - 60% | 257,071 | 21.9 | % | 224,892 | 20.9 | % | ||||||||
60% - 70% | 631,536 | 53.7 | % | 536,748 | 50.0 | % | ||||||||
70% - 80% | 107,622 | 9.2 | % | 114,645 | 10.7 | % | ||||||||
80% - 90% | 10,349 | 0.9 | % | 10,871 | 1.0 | % | ||||||||
Total | $ | 1,175,081 | 100.0 | % | $ | 1,074,089 | 100.0 | % | ||||||
Debt Service Coverage Ratio | ||||||||||||||
Greater than 1.5x | $ | 914,095 | 77.9 | % | $ | 811,243 | 75.6 | % | ||||||
1.25x to 1.5x | 137,253 | 11.7 | % | 147,530 | 13.7 | % | ||||||||
1.0x to 1.25x | 100,461 | 8.5 | % | 55,076 | 5.1 | % | ||||||||
Less than 1.0x | 17,990 | 1.5 | % | 50,188 | 4.7 | % | ||||||||
Not Applicable* | 5,282 | 0.4 | % | 10,052 | 0.9 | % | ||||||||
Total | $ | 1,175,081 | 100.0 | % | $ | 1,074,089 | 100.0 | % | ||||||
*Commercial mortgage loans secured by land or construction loans |
As of December 31, 2016 | As of December 31, 2015 | |||||||||||||
Property Type | Carrying Value | % | Carrying Value | % | ||||||||||
(In Thousands) | (In Thousands) | |||||||||||||
Apartments | $ | 256,824 | 21.8 | % | $ | 244,405 | 22.7 | % | ||||||
Hotel/Motel | 23,187 | 2.0 | % | 23,335 | 2.2 | % | ||||||||
Industrial | 253,473 | 21.6 | % | 192,878 | 18.0 | % | ||||||||
Mixed Use | 12,608 | 1.1 | % | 9,826 | 0.9 | % | ||||||||
Office | 165,834 | 14.1 | % | 146,882 | 13.7 | % | ||||||||
Other | 43,582 | 3.7 | % | 44,758 | 4.2 | % | ||||||||
Retail | 419,573 | 35.7 | % | 412,005 | 38.3 | % | ||||||||
Total | $ | 1,175,081 | 100.0 | % | $ | 1,074,089 | 100.0 | % |
As of December 31, 2016 | As of December 31, 2015 | |||||||||||||
Region | Carrying Value | % | Carrying Value | % | ||||||||||
(In Thousands) | (In Thousands) | |||||||||||||
Pacific | $ | 301,664 | 25.6 | % | $ | 292,326 | 27.2 | % | ||||||
South Atlantic | 203,990 | 17.4 | % | 174,148 | 16.2 | % | ||||||||
West South Central | 81,239 | 6.9 | % | 53,566 | 5.0 | % | ||||||||
East North Central | 161,642 | 13.8 | % | 149,256 | 13.9 | % | ||||||||
Middle Atlantic | 175,764 | 15.0 | % | 183,283 | 17.1 | % | ||||||||
Mountain | 123,587 | 10.5 | % | 87,492 | 8.1 | % | ||||||||
West North Central | 58,549 | 5.0 | % | 66,037 | 6.1 | % | ||||||||
New England | 48,187 | 4.1 | % | 46,915 | 4.4 | % | ||||||||
East South Central | 20,459 | 1.7 | % | 21,066 | 2.0 | % | ||||||||
Total | $ | 1,175,081 | 100.0 | % | $ | 1,074,089 | 100.0 | % |
Year of Origination | 2016 | 2015 | ||||||
(In Thousands) | ||||||||
2016 | $ | 198,372 | $ | — | ||||
2015 | 185,048 | 188,793 | ||||||
2014 | 434,751 | 449,623 | ||||||
2013 | 167,827 | 172,135 | ||||||
2012 | 8,087 | 8,273 | ||||||
2011 | 16,337 | 17,538 | ||||||
2010 and prior | 164,659 | 237,727 | ||||||
Total | $ | 1,175,081 | $ | 1,074,089 |
6. | Reserves |
General Account | Separate Account with Guarantees | Separate Account Nonguaranteed | Total | Percent of Total | ||||||||||||||
(In Thousands) | ||||||||||||||||||
December 31, 2016 | ||||||||||||||||||
Subject to discretionary withdrawal (with adjustment): | ||||||||||||||||||
With market value adjustment | $ | 187,095 | $ | — | $ | — | $ | 187,095 | 30.2% | |||||||||
At fair value | — | — | 7,635 | 7,635 | 1.2 | |||||||||||||
Total with market value adjustment or at fair value | 187,095 | — | 7,635 | 194,730 | 31.4 | |||||||||||||
Subject to discretionary withdrawal (without adjustment): | ||||||||||||||||||
At book value with minimal or no charge or adjustment | 152,292 | — | — | 152,292 | 24.6 | |||||||||||||
Not subject to discretionary withdrawal | 272,273 | — | — | 272,273 | 44.0 | |||||||||||||
Total annuity reserves and deposit fund liabilities before reinsurance | 611,660 | — | 7,635 | 619,295 | 100.0% | |||||||||||||
Less reinsurance ceded | 2,532 | — | — | 2,532 | ||||||||||||||
Net annuity reserves and deposit fund liabilities | $ | 609,128 | $ | — | $ | 7,635 | $ | 616,763 | ||||||||||
December 31, 2015 | ||||||||||||||||||
Subject to discretionary withdrawal (with adjustment): | ||||||||||||||||||
With market value adjustment | $ | 218,802 | $ | — | $ | — | $ | 218,802 | 25.8% | |||||||||
At fair value | — | — | 8,422 | 8,422 | 1.0 | |||||||||||||
Total with market value adjustment or at fair value | 218,802 | — | 8,422 | 227,224 | 26.8 | |||||||||||||
Subject to discretionary withdrawal (without adjustment): | ||||||||||||||||||
At book value with minimal or no charge or adjustment | 133,207 | — | — | 133,207 | 15.7 | |||||||||||||
Not subject to discretionary withdrawal | 489,008 | — | — | 489,008 | 57.5 | |||||||||||||
Total annuity reserves and deposit fund liabilities before reinsurance | 841,017 | — | 8,422 | 849,439 | 100.0% | |||||||||||||
Less reinsurance ceded | 2,574 | — | — | 2,574 | ||||||||||||||
Net annuity reserves and deposit fund liabilities | $ | 838,443 | $ | — | $ | 8,422 | $ | 846,865 |
2016 | 2015 | ||||||||||||||
Gross | Net of Loading | Gross | Net of Loading | ||||||||||||
(In Thousands) | |||||||||||||||
Ordinary new business | $ | (31,474 | ) | $ | (31,474 | ) | $ | (30,450 | ) | $ | (30,450 | ) | |||
Ordinary renewal | (83,492 | ) | (82,420 | ) | (17,889 | ) | (16,702 | ) | |||||||
Group life | 52 | 42 | 41 | 35 | |||||||||||
Total | $ | (114,914 | ) | $ | (113,852 | ) | $ | (48,298 | ) | $ | (47,117 | ) |
7. | Employee Benefit Plans |
Overfunded | Underfunded | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
(In Thousands) | |||||||||||||||||
Pension Benefits | |||||||||||||||||
Benefit obligation at beginning of year | $ | — | $ | — | $ | 16,229 | $ | 18,783 | |||||||||
Interest cost | — | — | 754 | 796 | |||||||||||||
Actuarial loss (gain) | — | — | 602 | (1,245 | ) | ||||||||||||
Benefits paid | — | — | (1,487 | ) | (2,105 | ) | |||||||||||
Benefit obligation at end of year | $ | — | $ | — | $ | 16,098 | $ | 16,229 | |||||||||
Postretirement Benefits | |||||||||||||||||
Benefit obligation at beginning of year | $ | — | $ | — | $ | 527 | $ | 593 | |||||||||
Interest cost | — | — | 23 | 23 | |||||||||||||
Contribution by plan participants | — | — | 22 | 32 | |||||||||||||
Actuarial loss (gain) | — | — | (30 | ) | (23 | ) | |||||||||||
Benefits paid | — | — | (90 | ) | (98 | ) | |||||||||||
Plan amendments | — | — | (148 | ) | — | ||||||||||||
Benefit obligation at end of year | $ | — | $ | — | $ | 304 | $ | 527 | |||||||||
Special or Contractual Benefits Per SSAP No. 11* | |||||||||||||||||
Benefit obligation at beginning of year | $ | — | $ | — | $ | — | $ | — | |||||||||
Actuarial loss (gain) | — | — | — | — | |||||||||||||
Benefit obligation at end of year | $ | — | $ | — | $ | — | $ | — | |||||||||
* SSAP No. 11, Postemployment Benefits and Compensated Absences ( "SSAP No. 11") |
Pension Benefits | Postretirement Benefits | Special or Contractual Benefits Per SSAP No. 11 | ||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||
Actual return on plan assets | — | — | — | — | — | — | ||||||||||||||||||||
Foreign currency exchange rate changes | — | — | — | — | — | — | ||||||||||||||||||||
Reporting entity contribution | 1,487 | 2,105 | 68 | 66 | — | — | ||||||||||||||||||||
Plan participants' contributions | — | — | 22 | 32 | — | — | ||||||||||||||||||||
Benefits paid | (1,487 | ) | (2,105 | ) | (90 | ) | (98 | ) | — | — | ||||||||||||||||
Business combinations, divestitures and settlements | — | — | — | — | — | — | ||||||||||||||||||||
Fair value of plan assets at end of year | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
Pension Benefits | Postretirement Benefits | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
(In Thousands) | |||||||||||||||||
Overfunded | |||||||||||||||||
Assets (nonadmitted) | |||||||||||||||||
Prepaid benefit costs | $ | — | $ | — | $ | — | $ | — | |||||||||
Overfunded plan assets | — | — | — | — | |||||||||||||
Total assets (nonadmitted) | $ | — | $ | — | $ | — | $ | — | |||||||||
Underfunded | |||||||||||||||||
Liabilities recognized | |||||||||||||||||
Accrued benefit costs | $ | 9,949 | $ | 9,831 | $ | 3,143 | $ | 3,497 | |||||||||
Liability for pension benefits | 6,149 | 6,398 | (2,839 | ) | (2,970 | ) | |||||||||||
Total liabilities recognized | $ | 16,098 | $ | 16,229 | $ | 304 | $ | 527 | |||||||||
Unrecognized liabilities | $ | — | $ | — | $ | — | $ | — |
Pension Benefits | Postretirement Benefits | Special or Contractual Benefits Per SSAP No. 11 | |||||||||||||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | |||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Interest cost | 754 | 796 | 758 | 23 | 23 | 28 | — | — | — | ||||||||||||||||||||||||||
Expected return on plan assets | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Transition asset or obligation | 577 | 577 | 577 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Gains and losses | 329 | 567 | 45 | (211 | ) | (218 | ) | (261 | ) | — | — | (12 | ) | ||||||||||||||||||||||
Prior service cost or credit | (55 | ) | (60 | ) | (78 | ) | (98 | ) | (98 | ) | (98 | ) | — | — | — | ||||||||||||||||||||
Gain or loss recognized due to a settlement or curtailment | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total net periodic benefit cost | $ | 1,605 | $ | 1,880 | $ | 1,302 | $ | (286 | ) | $ | (293 | ) | $ | (331 | ) | $ | — | $ | — | $ | (12 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Items not yet recognized - prior year | $ | 6,398 | $ | 8,727 | $ | 5,631 | $ | (2,970 | ) | $ | (3,263 | ) | $ | (3,366 | ) | ||||||||
Net transition asset or obligation recognized | (577 | ) | (577 | ) | (577 | ) | — | — | — | ||||||||||||||
Net prior service cost or credit arising during the period | — | — | — | (148 | ) | — | — | ||||||||||||||||
Net prior service cost or credit recognized | 55 | 60 | 78 | 98 | 98 | 98 | |||||||||||||||||
Net gain and loss arising during period | 602 | (1,245 | ) | 3,640 | (30 | ) | (23 | ) | (256 | ) | |||||||||||||
Net gain and loss recognized | (329 | ) | (567 | ) | (45 | ) | 211 | 218 | 261 | ||||||||||||||
Items not yet recognized - current year | $ | 6,149 | $ | 6,398 | $ | 8,727 | $ | (2,839 | ) | $ | (2,970 | ) | $ | (3,263 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net transition asset or obligation recognized | $ | 577 | $ | 577 | $ | 577 | $ | — | $ | — | $ | — | |||||||||||
Net prior service cost or credit | (55 | ) | (55 | ) | (60 | ) | (111 | ) | (98 | ) | (98 | ) | |||||||||||
Net recognized gains and losses | 467 | 329 | 567 | (173 | ) | (215 | ) | (196 | ) |
Pension Benefits | Postretirement Benefits | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||
Net transition asset or obligation | $ | 2,306 | $ | 2,883 | $ | 3,460 | $ | — | $ | — | $ | — | |||||||||||
Net prior service cost or credit | (82 | ) | (136 | ) | (197 | ) | (742 | ) | (692 | ) | (791 | ) | |||||||||||
Net recognized gains and losses | 3,925 | 3,651 | 5,464 | (2,097 | ) | (2,278 | ) | (2,472 | ) |
2016 | 2015 | ||||
Weighted average discount rate | 4.55 | % | 4.81 | % | |
Rate of increase in compensation level | 4.00 | % | 4.00 | % |
2016 | 2015 | 2014 | ||||||
Weighted average discount rate | 4.81 | % | 4.36 | % | 4.95 | % | ||
Rate of increase in compensation level | 4.00 | % | 4.00 | % | 4.00 | % |
Year ending December 31, | Benefits | |||
(In Thousands) | ||||
2017 | $ | 1,232 | ||
2018 | 1,274 | |||
2019 | 1,210 | |||
2020 | 1,202 | |||
2021 | 1,194 | |||
2022 through 2026 | 5,784 |
8. | Separate Accounts |
Non-Guaranteed Separate Accounts | ||||||
(In Thousands) | ||||||
December 31, 2016 | ||||||
Premium, consideration or deposits for the year | $ | 76,394 | ||||
Reserves for separate accounts with assets at: | ||||||
Fair value | $ | 1,335,655 | ||||
Amortized cost | — | |||||
Total reserves | $ | 1,335,655 | ||||
Reserves for separate accounts by withdrawal characteristics: | ||||||
At book value without market value adjustment and with current surrender charge of 5% or more | $ | — | ||||
At fair value | 1,335,655 | |||||
At book value without market value adjustment and with current surrender charge less than 5% | — | |||||
Subtotal | $ | 1,335,655 | ||||
Not subject to discretionary withdrawal | — | |||||
Total separate account aggregate reserves | $ | 1,335,655 | ||||
December 31, 2015 | ||||||
Premium, consideration or deposits for the year | $ | 79,174 | ||||
Reserves for separate accounts with assets at: | ||||||
Fair value | $ | 1,307,887 | ||||
Amortized cost | — | |||||
Total reserves | $ | 1,307,887 | ||||
Reserves for separate accounts by withdrawal characteristics: | ||||||
At book value without market value adjustment and with current surrender charge of 5% or more | $ | — | ||||
At fair value | 1,307,887 | |||||
At book value without market value adjustment and with current surrender charge less than 5% | — | |||||
Subtotal | $ | 1,307,887 | ||||
Not subject to discretionary withdrawal | — | |||||
Total separate account aggregate reserves | $ | 1,307,887 |
Product or Transaction | Legally Insulated Assets | Not Legally Insulated Assets | ||||||
(In Thousands) | ||||||||
December 31, 2016 | ||||||||
Individual Life | $ | 1,350,124 | $ | — | ||||
Individual Annuity | 7,956 | — | ||||||
$ | 1,358,080 | $ | — | |||||
December 31, 2015 | ||||||||
Individual Life | $ | 1,325,636 | $ | — | ||||
Individual Annuity | 8,723 | — | ||||||
$ | 1,334,359 | $ | — |
Year ended | Risk Charges | |||
(In Thousands) | ||||
2016 | $ | 24 | ||
2015 | 24 | |||
2014 | 22 | |||
2013 | 19 | |||
2012 | 15 |
Year ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In Thousands) | |||||||||||
Transfers as reported in the summary of operations | |||||||||||
of the separate accounts statement: | |||||||||||
Transfers to separate accounts | $ | 76,394 | $ | 79,174 | $ | 84,458 | |||||
Transfers from separate accounts | (83,040 | ) | (95,437 | ) | (108,729 | ) | |||||
Transfers as reported in the summary of operations | $ | (6,646 | ) | $ | (16,263 | ) | $ | (24,271 | ) |
Guaranteed Minimum Death Benefit | |||
(In Thousands) | |||
December 31, 2016 | |||
Separate account liability | $ | 8,707 | |
Gross amount of reserve | 235 | ||
December 31, 2015 | |||
Separate account liability | $ | 9,404 | |
Gross amount of reserve | 264 |
Australia Retirement Services Holding, LLC | Voya Financial Advisors, Inc. |
Directed Services LLC | Voya Financial Partners, LLC |
IB Holdings LLC | Voya Financial Products Company, Inc. |
IIPS of Florida, LLC | Voya Financial, Inc. |
ILICA LLC | Voya Funds Services, LLC |
Langhorne I, LLC | Voya Holdings Inc. |
Midwestern United Life Insurance Company | Voya Institutional Plan Services, LLC |
Pomona Management LLC | Voya Investment Trust Co. |
Rancho Mountain Properties, Inc. | Voya Institutional Trust Company |
ReliaStar Life Insurance Company | Voya Insurance and Annuity Company |
ReliaStar Life Insurance Company of New York | Voya Insurance Solutions, Inc. |
Roaring River, LLC | Voya International Nominee Holdings, Inc. |
Roaring River II, Inc. | Voya Investment Management Alternative Assets LLC |
Roaring River IV Holding, LLC | Voya Investment Management Co. LLC |
Roaring River IV, LLC | Voya Investment Management LLC |
Security Life Assignment Corp. | Voya Investments Distributor, LLC |
Security Life of Denver Insurance Company | Voya Investments, LLC |
Security Life of Denver International Limited | Voya Payroll Management, Inc. |
SLDI Georgia Holdings, Inc. | Voya Pomona Holdings LLC |
Voya Alternative Asset Management LLC | Voya Realty Group LLC |
Voya America Equities, Inc. | Voya Retirement Advisors, LLC |
Voya Capital, LLC | Voya Retirement Insurance and Annuity Company |
Voya Custom Investments LLC | Voya Services Company |
Voya II Custom Investments LLC |
Year ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In Thousands) | |||||||||||
Federal tax (benefit) expense on operations | $ | (2,717 | ) | $ | 14,665 | $ | 57,470 | ||||
Federal tax (benefit) expense on capital gains and losses | (23,421 | ) | 2,354 | (16,660 | ) | ||||||
Foreign tax expense | 21 | — | — | ||||||||
Total current tax expense incurred | $ | (26,117 | ) | $ | 17,019 | $ | 40,810 |
12/31/16 | 12/31/15 | Change | |||||||||||||||||||||||||||||||||
Ordinary | Capital | Total | Ordinary | Capital | Total | Ordinary | Capital | Total | |||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||
Gross DTAs | $ | 276,297 | $ | 155,657 | $ | 431,954 | $ | 301,913 | $ | 176,093 | $ | 478,006 | $ | (25,616 | ) | $ | (20,436 | ) | $ | (46,052 | ) | ||||||||||||||
Statutory valuation allowance adjustments | 1,051 | — | 1,051 | 1,450 | — | 1,450 | (399 | ) | — | (399 | ) | ||||||||||||||||||||||||
Adjusted gross DTAs | 275,246 | 155,657 | 430,903 | 300,463 | 176,093 | 476,556 | (25,217 | ) | (20,436 | ) | (45,653 | ) | |||||||||||||||||||||||
Nonadmitted DTAs | 70,376 | 103,568 | 173,944 | 103,857 | 109,336 | 213,193 | (33,481 | ) | (5,768 | ) | (39,249 | ) | |||||||||||||||||||||||
Subtotal net admitted DTAs | 204,870 | 52,089 | 256,959 | 196,606 | 66,757 | 263,363 | 8,264 | (14,668 | ) | (6,404 | ) | ||||||||||||||||||||||||
Deferred tax liabilities | 114,710 | 25,492 | 140,202 | 101,016 | 29,188 | 130,204 | 13,694 | (3,696 | ) | 9,998 | |||||||||||||||||||||||||
Net admitted DTA (DTL) | $ | 90,160 | $ | 26,597 | $ | 116,757 | $ | 95,590 | $ | 37,569 | $ | 133,159 | $ | (5,430 | ) | $ | (10,972 | ) | $ | (16,402 | ) | ||||||||||||||
12/31/2016 | 12/31/2015 | Change | ||||||||||||||||||||||||||||||||||
Ordinary | Capital | Total | Ordinary | Capital | Total | Ordinary | Capital | Total | ||||||||||||||||||||||||||||
(In Thousands) | ||||||||||||||||||||||||||||||||||||
a. | Federal income taxes paid in prior years recoverable through loss carrybacks | $ | — | $ | — | $ | — | $ | 14,000 | $ | 10,395 | $ | 24,395 | $ | (14,000 | ) | $ | (10,395 | ) | $ | (24,395 | ) | ||||||||||||||
b. | Adjusted gross DTAs expected to be realized (excluding the amount of DTAs from (a)) after application of the threshold limitation (the lesser of (b)1 and (b)2 below) | 90,160 | 26,597 | 116,757 | 81,590 | 27,174 | 108,764 | 8,570 | (577 | ) | 7,993 | |||||||||||||||||||||||||
1. Adjusted gross DTAs expected to be realized following the balance sheet date | 90,160 | 26,597 | 116,757 | 81,590 | 27,174 | 108,764 | 8,570 | (577 | ) | 7,993 | ||||||||||||||||||||||||||
2. Adjusted gross DTAs allowed per limitation threshold | XXX | XXX | 116,757 | XXX | XXX | 108,764 | XXX | XXX | 7,993 | |||||||||||||||||||||||||||
c. | Adjusted gross DTAs (excluding the amount of DTAs from (a) and (b) above) offset by gross deferred tax liabilities | 114,710 | 25,492 | 140,202 | 101,016 | 29,188 | 130,204 | 13,694 | (3,696 | ) | 9,998 | |||||||||||||||||||||||||
d. | Deferred tax assets admitted as the result of application SSAP No. 101 Total | $ | 204,870 | $ | 52,089 | $ | 256,959 | $ | 196,606 | $ | 66,757 | $ | 263,363 | $ | 8,264 | $ | (14,668 | ) | $ | (6,404 | ) |
2016 | 2015 | ||||||
(Amounts in Thousands) | |||||||
Ratio percentage used to determine recovery period and threshold limitation amount | 891.8 | % | 790.8 | % | |||
Amount of adjusted capital and surplus used to determine recovery period and threshold limitation | $ | 856,730 | $ | 791,947 |
12/31/2016 | 12/31/2015 | Change | |||||||||||||||||||||
Ordinary | Capital | Ordinary | Capital | Ordinary | Capital | ||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||
Adjusted gross DTAs | $ | 275,246 | $ | 155,657 | $ | 300,463 | $ | 176,093 | $ | (25,217 | ) | $ | (20,436 | ) | |||||||||
Percentage of adjusted gross DTAs by tax character attributable to the impact of tax planning strategies | 0.00% | 83.62% | 0.00% | 83.42% | 0.00% | 0.20% | |||||||||||||||||
Net Admitted Adjusted Gross DTAs | $ | 204,870 | $ | 52,089 | $ | 196,606 | $ | 66,757 | $ | 8,264 | $ | (14,668 | ) | ||||||||||
Percentage of net admitted adjusted gross DTAs by tax character admitted because of the impact of tax planning strategies | 0.00% | 51.06% | 0.00% | 56.28% | 0.00% | (5.22)% |
12/31/2016 | 12/31/2015 | Change | |||||||||
(In Thousands) | |||||||||||
Deferred Tax Assets | |||||||||||
Ordinary: | |||||||||||
Discounting of unpaid losses | $ | 1,634 | $ | 300 | $ | 1,334 | |||||
Unearned premium reserve | 3 | 3 | — | ||||||||
Policyholder reserves | 69,920 | 111,058 | (41,138 | ) | |||||||
Investments | 99,065 | 88,217 | 10,848 | ||||||||
Deferred acquisition costs | 84,117 | 78,151 | 5,966 | ||||||||
Policyholder dividends accrual | 1,440 | 1,423 | 17 | ||||||||
Compensation and benefits accrual | 2,884 | 2,118 | 766 | ||||||||
Pension accrual | 6,844 | 8,469 | (1,625 | ) | |||||||
Receivables - nonadmitted* | 2,852 | — | 2,852 | ||||||||
Tax credit carry-forward | 1,053 | 1,450 | (397 | ) | |||||||
Prepayment | — | 14 | (14 | ) | |||||||
Other (including items <5% of total ordinary tax assets) | 6,485 | 10,710 | (4,225 | ) | |||||||
Subtotal | 276,297 | 301,913 | (25,616 | ) | |||||||
Statutory valuation allowance adjustment | 1,051 | 1,450 | (399 | ) | |||||||
Nonadmitted | 70,376 | 103,857 | (33,481 | ) | |||||||
Admitted ordinary deferred tax assets | $ | 204,870 | $ | 196,606 | $ | 8,264 | |||||
Capital: | |||||||||||
Investments | $ | 155,657 | $ | 176,093 | $ | (20,436 | ) | ||||
Subtotal | 155,657 | 176,093 | (20,436 | ) | |||||||
Nonadmitted | 103,568 | 109,336 | (5,768 | ) | |||||||
Admitted capital deferred tax assets | 52,089 | 66,757 | (14,668 | ) | |||||||
Admitted deferred tax assets | $ | 256,959 | $ | 263,363 | $ | (6,404 | ) | ||||
Deferred Tax Liabilities | |||||||||||
Ordinary: | |||||||||||
Investments | $ | 62,058 | $ | 41,085 | $ | 20,973 | |||||
Deferred and uncollected premiums | 2,042 | 3,430 | (1,388 | ) | |||||||
Policyholder reserves | 3,574 | 11,990 | (8,416 | ) | |||||||
Interest on surplus notes | 47,035 | 44,415 | 2,620 | ||||||||
Other (including items <5% of total ordinary tax liabilities) | — | 96 | (96 | ) | |||||||
Subtotal | $ | 114,709 | $ | 101,016 | $ | 13,693 | |||||
Capital: | |||||||||||
Investments | $ | 25,493 | $ | 29,188 | $ | (3,695 | ) | ||||
Subtotal | 25,493 | 29,188 | (3,695 | ) | |||||||
Total deferred tax liabilities | $ | 140,202 | $ | 130,204 | $ | 9,998 | |||||
Net deferred tax assets/liabilities | $ | 116,757 | $ | 133,159 | $ | (16,402 | ) | ||||
* Includes other nonadmitted assets |
Year Ended December 31 | ||||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||||
Amount | Effective Tax Rate | Amount | Effective Tax Rate | Amount | Effective Tax Rate | |||||||||||||||||
(Amounts In Thousands) | ||||||||||||||||||||||
Ordinary income (loss) | $ | 70,857 | $ | 69,544 | $ | 169,059 | ||||||||||||||||
Capital losses | (3,794 | ) | (297,004 | ) | 13,325 | |||||||||||||||||
Total pretax income (loss) | 67,063 | (227,460 | ) | 182,384 | ||||||||||||||||||
Expected tax expense (benefit) at 35% statutory rate | 23,472 | 35.0 | % | (79,611 | ) | 35.0 | % | 63,834 | 35.0 | % | ||||||||||||
Increase (decrease) in actual tax reported resulting from: | ||||||||||||||||||||||
a. | Dividends received deduction | (3,409 | ) | (5.1 | )% | (2,876 | ) | 1.3 | % | (3,097 | ) | (1.7 | )% | |||||||||
b. | Interest maintenance reserve | 2,643 | 3.9 | % | (2,188 | ) | 1.0 | % | 17,722 | 9.7 | % | |||||||||||
c. | Reinsurance | (5,255 | ) | (7.8 | )% | (8,178 | ) | 3.6 | % | 3,448 | 1.9 | % | ||||||||||
d. | Interest in limited liability company | 436 | 0.7 | % | 202 | (0.1 | )% | (33,622 | ) | (18.4 | )% | |||||||||||
e. | Tax credits | 399 | 0.6 | % | 148 | (0.1 | )% | — | — | % | ||||||||||||
f. | Change in valuation allowance | (399 | ) | (0.6 | )% | (148 | ) | 0.1 | % | — | — | % | ||||||||||
g. | Prior year tax | — | — | % | (2,602 | ) | 1.1 | % | (3,623 | ) | (2.0 | )% | ||||||||||
h. | Liquidation of subsidiary | — | — | % | 98,427 | (43.3 | )% | — | — | % | ||||||||||||
i. | Other | 58 | 0.1 | % | (109 | ) | — | % | (1,337 | ) | (0.7 | )% | ||||||||||
Total income tax reported | $ | 17,945 | 26.8 | % | $ | 3,065 | (1.4 | )% | $ | 43,325 | 23.8 | % | ||||||||||
Current income taxes incurred | $ | (26,117 | ) | (38.9 | )% | $ | 17,019 | (7.5 | )% | $ | 40,810 | 22.4 | % | |||||||||
Change in deferred income tax* | 44,062 | 65.7 | % | (13,954 | ) | 6.1 | % | 2,515 | 1.4 | % | ||||||||||||
Total income tax reported | $ | 17,945 | 26.8 | % | $ | 3,065 | (1.4 | )% | $ | 43,325 | 23.8 | % |
Year of Origination | Year of Expiration | Tax Credit Carry Forwards | |||||
(In Thousands) | |||||||
Foreign Tax Credit | 2007 | 2017 | $ | 1,051 | |||
Low Income Housing Tax Credit | 2015 | 2035 | 1 | ||||
$ | 1,052 |
Method of Estimating Utilization of Remaining Transferable State Tax Credit | State | Carrying Value | Unused Credit Remaining | |||||||
(In Thousands) | ||||||||||
December 31, 2016 | ||||||||||
Fixed credit at time of purchase | NC | $ | 657 | $ | 780 | |||||
Fixed credit at time of purchase | AL | 414 | 199 | |||||||
Low Income Housing Investment | GA | 24 | 38 | |||||||
Total State Tax Credits | $ | 1,095 | $ | 1,017 | ||||||
December 31, 2015 | ||||||||||
Fixed credit at time of purchase | NC | $ | 882 | $ | 1,073 | |||||
Fixed credit at time of purchase | AL | 414 | 325 | |||||||
Low Income Housing Investment | GA | 350 | 294 | |||||||
Total State Tax Credits | $ | 1,646 | $ | 1,692 |
10. | Investment in and Advances to Subsidiaries |
December 31 | |||||||
2016 | 2015 | ||||||
(In Thousands) | |||||||
Common stock (cost - $41,246 in 2016 and $41,246 in 2015) | $ | 133,136 | $ | 129,520 | |||
Limited liability companies (cost - $185,358 in 2016 and $184,622 in 2015) | 90,568 | 88,694 | |||||
Total investment in subsidiaries | $ | 223,704 | $ | 218,214 |
December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In Thousands) | |||||||||||
Revenues | $ | 27,575 | $ | 30,559 | $ | 32,268 | |||||
Income (loss) before net realized gains on investments | 4,197 | (8,521 | ) | (198,569 | ) | ||||||
Net income (loss) | 4,206 | (7,912 | ) | (197,185 | ) | ||||||
Admitted assets | 327,271 | 325,687 | 342,657 | ||||||||
Liabilities | 103,383 | 107,478 | 112,178 |
11. | Reinsurance |
December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In Thousands) | |||||||||||
Premiums | $ | 2,280,607 | $ | 2,048,067 | $ | 1,378,327 | |||||
Benefits paid or provided | 2,278,892 | 2,163,457 | 2,015,094 | ||||||||
Policy and contract liabilities at year end | 11,461,680 | 11,519,585 | 11,211,547 |
12. | Capital and Surplus |
13. | Fair Values of Financial Instruments |
▪ | Level 1 - Unadjusted quoted prices for identical assets or liabilities in an active market. |
▪ | Level 2 - Quoted prices in markets that are not active or inputs that are observable either directly or indirectly for substantially the full term of the asset or liability. Level 2 inputs include the following: |
a) | Quoted prices for similar assets or liabilities in active markets; |
b) | Quoted prices for identical or similar assets or liabilities in non-active markets; |
c) | Inputs other than quoted market prices that are observable; and |
d) | Inputs that are derived principally from or corroborated by observable market data through correlation or other means. |
▪ | Level 3 - Prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These valuations, whether derived internally or obtained from a third party, use critical assumptions that are not widely available to estimate market participant expectations in valuing the asset or liability. |
Aggregate Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities, including securities pledged | $ | 8,452,981 | $ | 7,862,357 | $ | 442,332 | $ | 7,831,835 | $ | 178,814 | |||||||||
Preferred stock | 23,308 | 22,477 | — | — | 23,308 | ||||||||||||||
Common stock | 4,682 | 4,682 | — | 4,682 | — | ||||||||||||||
Mortgage loans | 1,199,831 | 1,175,081 | — | — | 1,199,831 | ||||||||||||||
Contract loans | 1,053,343 | 1,053,343 | 1,053,343 | — | — | ||||||||||||||
Other invested assets | 84,989 | 65,742 | — | 84,896 | 93 | ||||||||||||||
Cash, cash equivalents and short-term investments | 92,645 | 92,643 | 57,713 | 34,930 | 2 | ||||||||||||||
Derivatives | |||||||||||||||||||
Credit contracts | 4,532 | 2,534 | — | 4,532 | — | ||||||||||||||
Equity contracts | 90,540 | 90,539 | — | 13,873 | 76,667 | ||||||||||||||
Foreign exchange contracts | 9,619 | 4,811 | — | 9,619 | — | ||||||||||||||
Interest rate contracts | 18,902 | 17,237 | — | 18,902 | — | ||||||||||||||
Separate account assets | 1,358,080 | 1,358,080 | 1,308,594 | 49,486 | — | ||||||||||||||
Total Assets | $ | 12,393,452 | $ | 11,749,526 | $ | 2,861,982 | $ | 8,052,755 | $ | 1,478,715 | |||||||||
Liabilities: | |||||||||||||||||||
Supplementary contracts and immediate annuities | $ | 39,941 | $ | 26,228 | $ | — | $ | — | $ | 39,941 | |||||||||
Deposit type contracts | 410,976 | 408,246 | — | 410,439 | 537 | ||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | 4,914 | 4,907 | — | 4,914 | — | ||||||||||||||
Interest rate contracts | 27,394 | 11,275 | 111 | 27,283 | — | ||||||||||||||
Total return swaps | 53,824 | 53,824 | — | — | 53,824 | ||||||||||||||
Total Liabilities | $ | 537,049 | $ | 504,480 | $ | 111 | $ | 442,636 | $ | 94,302 |
Aggregate Fair Value | Carrying Value | Level 1 | Level 2 | Level 3 | |||||||||||||||
(In Thousands) | |||||||||||||||||||
Assets: | |||||||||||||||||||
Fixed maturities, including securities pledged | $ | 8,567,405 | $ | 8,227,851 | $ | 501,176 | $ | 7,936,945 | $ | 129,284 | |||||||||
Preferred stock | 22,394 | 22,302 | — | — | 22,394 | ||||||||||||||
Common stock | 15,348 | 15,348 | 15,348 | — | — | ||||||||||||||
Mortgage loans | 1,124,016 | 1,074,089 | — | — | 1,124,016 | ||||||||||||||
Contract loans | 1,050,613 | 1,050,613 | 1,050,613 | — | — | ||||||||||||||
Other invested assets | 84,602 | 64,041 | — | 84,473 | 129 | ||||||||||||||
Cash, cash equivalents and short-term investments | 5,824 | 5,822 | 5,822 | — | 2 | ||||||||||||||
Derivatives | |||||||||||||||||||
Credit contracts | 1,374 | 146 | — | 1,374 | — | ||||||||||||||
Equity contracts | 60,260 | 60,260 | — | 5,496 | 54,764 | ||||||||||||||
Foreign exchange contracts | 9,693 | 4,691 | — | 9,693 | — | ||||||||||||||
Interest rate contracts | 31,822 | 23,928 | — | 31,822 | — | ||||||||||||||
Separate account assets | 1,334,359 | 1,334,359 | 1,282,988 | 51,371 | — | ||||||||||||||
Total Assets | $ | 12,307,710 | $ | 11,883,450 | $ | 2,855,947 | $ | 8,121,174 | $ | 1,330,589 | |||||||||
Liabilities: | |||||||||||||||||||
Supplementary contracts and immediate annuities | $ | 42,813 | $ | 28,073 | $ | — | $ | — | $ | 42,813 | |||||||||
Deposit type contracts | 640,997 | 616,605 | — | 640,386 | 611 | ||||||||||||||
Derivatives | |||||||||||||||||||
Foreign exchange contracts | 4,635 | 4,635 | — | 4,635 | — | ||||||||||||||
Interest rate contracts | 50,017 | 21,462 | 112 | 49,905 | — | ||||||||||||||
Total return swaps | 64,922 | 64,922 | — | — | 64,922 | ||||||||||||||
Total Liabilities | $ | 803,384 | $ | 735,697 | $ | 112 | $ | 694,926 | $ | 108,346 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In Thousands) | |||||||||||||||
Assets: | |||||||||||||||
Bonds | |||||||||||||||
U.S. corporate, state & municipal | $ | — | $ | 3,410 | $ | — | $ | 3,410 | |||||||
Foreign | — | — | 65 | 65 | |||||||||||
Other asset-backed | — | — | 396 | 396 | |||||||||||
Common stock | — | 4,682 | — | 4,682 | |||||||||||
Derivatives | |||||||||||||||
Equity contracts | — | 13,873 | 76,667 | 90,540 | |||||||||||
Foreign exchange contracts | — | 4,805 | — | 4,805 | |||||||||||
Interest rate contracts | — | 17,236 | — | 17,236 | |||||||||||
Separate account assets | 1,308,594 | 49,486 | — | 1,358,080 | |||||||||||
Total assets | $ | 1,308,594 | $ | 93,492 | $ | 77,128 | $ | 1,479,214 | |||||||
Liabilities: | |||||||||||||||
Deposit type contracts | $ | — | $ | 152,293 | $ | — | $ | 152,293 | |||||||
Derivatives | |||||||||||||||
Foreign exchange contracts | — | 4,907 | — | 4,907 | |||||||||||
Interest rate contracts | — | 11,275 | — | 11,275 | |||||||||||
Total return swap | — | — | 53,824 | 53,824 | |||||||||||
Total liabilities | $ | — | $ | 168,475 | $ | 53,824 | $ | 222,299 |
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(In Thousands) | |||||||||||||||
Assets: | |||||||||||||||
Bonds | |||||||||||||||
U.S. corporate, state & municipal | $ | — | $ | 3,891 | $ | — | $ | 3,891 | |||||||
Foreign | — | — | 98 | 98 | |||||||||||
Common stock | 15,348 | — | — | 15,348 | |||||||||||
Derivatives | |||||||||||||||
Equity contracts | — | 5,496 | 54,765 | 60,261 | |||||||||||
Foreign exchange contracts | — | 4,691 | — | 4,691 | |||||||||||
Interest rate contracts | — | 23,929 | — | 23,929 | |||||||||||
Separate account assets | 1,282,988 | 51,371 | — | 1,334,359 | |||||||||||
Total assets | $ | 1,298,336 | $ | 89,378 | $ | 54,863 | $ | 1,442,577 | |||||||
Liabilities: | |||||||||||||||
Deposit type contracts | $ | — | $ | 131,936 | $ | — | $ | 131,936 | |||||||
Derivatives | |||||||||||||||
Foreign exchange contracts | — | 4,635 | — | 4,635 | |||||||||||
Interest rate contracts | — | 21,462 | — | 21,462 | |||||||||||
Total return swaps | — | — | 64,922 | 64,922 | |||||||||||
Total liabilities | $ | — | $ | 158,033 | $ | 64,922 | $ | 222,955 |
Description | Beginning of the Year | Transfers into Level 3 | Transfers Out of Level 3 | Total Gains and (Losses) Included in Net Income | Total Gains and (Losses) Included in Surplus | Purchases | Issuances | Sales | Settlements | End of the Year | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||||||
Corporate | $ | — | $ | 1,000 | $ | (950 | ) | $ | — | $ | (50 | ) | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Foreign | 98 | 3,357 | (2,723 | ) | (16 | ) | (651 | ) | — | — | — | — | 65 | ||||||||||||||||||||||||||
Other asset-backed | — | 396 | — | — | — | — | — | — | — | 396 | |||||||||||||||||||||||||||||
Derivatives | — | ||||||||||||||||||||||||||||||||||||||
Equity contracts | 54,765 | — | — | (2,618 | ) | 10,549 | 25,755 | — | (11,784 | ) | — | 76,667 | |||||||||||||||||||||||||||
Total return swaps | (64,922 | ) | — | — | 4,779 | 11,841 | (5,522 | ) | — | — | — | (53,824 | ) | ||||||||||||||||||||||||||
Total | $ | (10,059 | ) | $ | 4,753 | $ | (3,673 | ) | $ | 2,145 | $ | 21,689 | $ | 20,233 | $ | — | $ | (11,784 | ) | $ | — | $ | 23,304 |
Description | Beginning of the Year | Transfers into Level 3 | Transfers Out of Level 3 | Total Gains and (Losses) Included in Net Income | Total Gains and (Losses) Included in Surplus | Purchases | Issuances | Sales | Settlements | End of the Year | |||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||||
Bonds | |||||||||||||||||||||||||||||||||||||||
Foreign | $ | — | $ | 620 | $ | — | $ | (135 | ) | $ | — | $ | 139 | $ | — | $ | — | $ | (526 | ) | $ | 98 | |||||||||||||||||
Derivatives | |||||||||||||||||||||||||||||||||||||||
Equity contracts | 50,508 | — | — | (2,552 | ) | (4,960 | ) | 18,051 | — | (6,282 | ) | — | 54,765 | ||||||||||||||||||||||||||
Interest rate contracts | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Total return swaps | (66,462 | ) | — | — | 4,339 | 1,055 | (3,854 | ) | — | — | — | (64,922 | ) | ||||||||||||||||||||||||||
Total | $ | (15,954 | ) | $ | 620 | $ | — | $ | 1,652 | $ | (3,905 | ) | $ | 14,336 | $ | — | $ | (6,282 | ) | $ | (526 | ) | $ | (10,059 | ) |
14. | Commitments and Contingencies |
Maximum Potential of Required Future Payments | $ | 123,997 | ||
Current Liability Recognized: | ||||
Noncontingent liabilities | $ | — | ||
Contingent liabilities | — | |||
Ultimate Impact if Action Required Under Guarantee: | ||||
Subsidiary policy claim guarantee - Midwestern | $ | 123,997 | ||
Other | — | |||
Total | $ | 123,997 |
15. | Financing Agreements |
16. | Related Party Transactions |
December 31 | |||||||
2016 | 2015 | ||||||
(In Thousands) | |||||||
Assets recognized from paid and accrued premium tax offsets and policy surcharges beginning of the year | $ | 1,667 | $ | 2,536 | |||
Decreases current year: | |||||||
Premium tax offset applied | (263 | ) | (312 | ) | |||
Adjustment to estimate | — | (557 | ) | ||||
Assets recognized from paid and accrued premium tax offsets and policy surcharges end of the year | $ | 1,404 | $ | 1,667 |
December 31 | |||||||
2016 | 2015 | ||||||
(In Thousands) | |||||||
Balance at January 1 | $ | 286,740 | $ | 270,739 | |||
Less reinsurance recoverables | 512 | 335 | |||||
Net balance at January 1 | 286,228 | 270,404 | |||||
Incurred related to: | |||||||
Current year | 138,716 | 91,129 | |||||
Prior years | 431 | 6,579 | |||||
Total incurred | 139,147 | 97,708 | |||||
Paid related to: | |||||||
Current year | 59,542 | 43,582 | |||||
Prior years | 48,182 | 38,302 | |||||
Total paid | 107,724 | 81,884 | |||||
Net balance at December 31 | 317,651 | 286,228 | |||||
Plus reinsurance recoverables | 461 | 512 | |||||
Balance at December 31 | $ | 318,112 | $ | 286,740 |
19. | Subsequent Events |
333-147534 |
May 2017 |
Part C
OTHER INFORMATION
Item 26 |
Exhibits |
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(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.) |
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(b) |
Not Applicable. |
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(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.) |
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(2) |
First Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated herein by reference to 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.) |
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(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.) |
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(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 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.) |
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(6) |
Amendment to Security Life of Denver Insurance Company Distribution Agreement. (Incorporated herein by reference to 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.) |
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(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.) |
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(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 May 1, 1997; File No. 33-88148.) |
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(9) |
Compensation Schedule. (Incorporated herein by reference to 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.) |
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(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.) |
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(11) |
Specimen Master Sales and Supervisory Agreement with Compensation Schedule. (Incorporated herein by reference to 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.) |
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(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.) |
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(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.) |
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(14) |
Intercompany Agreement, effective as of January 1, 2010, between Directed Services LLC and Security Life of Denver Insurance Company. (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 February 4, 2011; File No. 333-147534.) |
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(15) |
Amendment No. 1 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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 April 9, 2014; File No. 333-147534.) |
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(16) |
Amendment No. 2 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective Amendment No. 10 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on December 12, 2014; File No. 333-147534.) |
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(17) |
Amendment No. 3 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective Amendment No. 11 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 16, 2015; File No. 333-147534.) |
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(18) |
Amendment No. 4 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective Amendment No. 12 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 8, 2016; File No. 333-147534.) |
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(19) |
Amendment No. 5 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company. |
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(20) |
Intercompany Agreement, effective as of January 1, 2010, between ING Investment Management LLC and Security Life of Denver Insurance Company. (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 February 4, 2011; File No. 333-147534.) |
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(21) |
Amendment No. 1 to the Intercompany Agreement between ING Investment Management LLC and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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 April 9, 2014; File No. 333-147534.) |
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(23) |
Amendment No. 3 to the Intercompany Agreement between Voya Investment Management LLC and Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective Amendment No. 12 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 8, 2016; File No. 333-147534.) |
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(24) |
Amendment No. 4 to the Intercompany Agreement between Voya Investment Management LLC and Security Life of Denver Insurance Company. |
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(d) |
(1) |
Variable Universal Life Insurance Policy (Form No. 2517(VUL)-03/08). (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on January 31, 2008; File No. 333-147534.) |
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(2) |
Accelerated Benefit Rider (Form No. R2030-03/08). (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on January 31, 2008; File No. 333-147534.) |
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(3) |
Additional Insured Rider (Form No. R1343-4/06). (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on October 6, 2010; File No. 333-168047.) |
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(4) |
Adjustable Term Insurance Rider (Form No. R2031-03/08). (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on January 31, 2008; File No. 333-147534.) |
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(5) |
Guaranteed Death Benefit Rider. (Form No. R2025-4/04). (Incorporated herein by reference to the Form N-6 Initial Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on September 10, 2004; File No. 333-117329.) |
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(6) |
Guaranteed Minimum Accumulation Benefit Rider (Form No. R2032-03/08). (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on January 31, 2008; File No. 333-147534.) |
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(7) |
Overloan Lapse Protection Rider (Form No. R028-05/07). (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on September 7, 2007; File No. 333-143973.) |
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(8) |
Waiver of Cost of Insurance Rider (Form No. R2021-3/01). (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.) |
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(9) |
Waiver of Specified Premium Total Disability Rider (Form No. R2020-3/01). (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.) |
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(e) |
(1) |
Individual Life Insurance Application (Form No. ICC09 153756). (Incorporated herein by reference to the Form N-6 Initial Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on July 9, 2010; File No. 333-168047.) |
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(2) |
Fund Allocation of Premium Payments Form (Form No. 139191 05/01/2016). (Incorporated herein by reference to Post-Effective Amendment No. 10 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 8, 2016; File No. 333-147534.) |
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(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.) |
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(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.) |
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(3) |
Amendments to Articles of Incorporation through November 12, 2001. (Incorporated herein by reference to 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.) |
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(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.) |
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(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.) |
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(g) |
Not Applicable. |
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(h) |
(1) |
(a) |
Participation Agreement by and among AIM Variable Insurance Funds, Inc., Security Life of Denver Insurance Company, on Behalf of Itself and its Separate Accounts and ING America Equities, Inc. (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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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. 033-74190.) |
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(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 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.) |
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(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 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.) |
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(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 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.) |
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(h) |
Expense Allocation Agreement between A I M Advisors, Inc., A I M Distributors, Inc. and Security Life of Denver. (Incorporated herein by reference to 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.) |
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(i) |
Amendment No. 1 to Expense Allocation Agreement between A I M Advisors, Inc., A I M Distributors, Inc. and Security Life of Denver. (Incorporated herein by reference to 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.) |
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(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. 033-74190.) |
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(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. 033-74190.) |
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(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. 033-74190.) |
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(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 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. 033-74190.) |
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(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. 033-74190.) |
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(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 herein by reference to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-6, filed on July 17, 2003; File No. 333-105319.) |
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(b) |
Amendment No. 2 dated as of April 1, 2015, to the Fund Participation Agreement dated April 30, 2003, as amended, by and among Voya Insurance and Annuity Company; Voya Retirement Insurance and Annuity Company; ReliaStar Life Insurance Company; ReliaStar Life Insurance Company of New York; Security Life of Denver Insurance Company; and the American Funds Insurance Series. (Incorporated herein by reference to Pre-Effective Amendment No. 12 to the Registration Statement on Form N-6, filed on April 8, 2012; File No. 333-147534.) |
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(c) |
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 herein by reference to Pre-Effective Amendment No. 1 to the Registration Statement on Form N-6, filed on July 17, 2003; File No. 333-105319.) |
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(d) |
Amendment No. 1 to the Business Agreement by and among ING USA Annuity and Life Insurance Company (fka Golden American Life Insurance Company), ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance Company (individually and as the survivor and successor in interest following a merger with Southland Life Insurance Company), ING Life Insurance and Annuity Company (individually and as the survivor and successor in interest following a merger with ING Insurance Company of America), ING America Equities, Inc., ING Financial Advisers, LLC, Directed Services LLC (fka Directed Services, Inc.), American Funds Distributors, Inc. and Capital Research and Management Company. (Incorporated herein by reference to Pre-Effective Amendment No. 1 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on November 14, 2008; File No. 333-153338.) |
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(e) |
Amendment No. 2 dated as of April 1, 2015, to the Business Agreement dated April 30, 2003, as amended, by and among Voya Insurance and Annuity Company; Voya Retirement Insurance and Annuity Company; ReliaStar Life Insurance Company; ReliaStar Life Insurance Company of New York; Security Life of Denver Insurance Company; and the American Funds Insurance Series. (Incorporated herein by reference to Pre-Effective Amendment No. 12 to the Registration Statement on Form N-6, filed on April 8, 2012; File No. 333-147534.) |
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(f) |
Rule 22C-2 Agreement, effective April 16, 2007, and to become operational on October 16, 2007, by and between American Funds Service Company, ING Life Insurance and Annuity Company, ING National Trust, ING USA Annuity and Life Insurance Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance Company and Systematized Benefits Administrators Inc. (Incorporated herein by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-6, filed on April 9, 2007; File Number 333-47527.) |
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(4) |
(a) |
Participation Agreement dated April 25, 2008, by and among BlackRock Variable Series Funds, Inc., BlackRock Distributors, Inc., ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York. (Incorporated herein by reference to Post-Effective Amendment No. 26 to the Form N-6 Registration Statement of ReliaStar Life Insurance Company and its Select*Life Separate Account, filed on April 7, 2009; File No. 033-57244.) |
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(b) |
Amendment No. 1, dated as of April 24, 2009, and effective as of May 1, 2009, to the Participation Agreement dated April 25, 2008, by and between BlackRock Variable Series Funds, Inc., BlackRock Investments, LLC., ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York. (Incorporated herein by reference to Post-Effective Amendment No. 27 to the Form N-6 Registration Statement of ReliaStar Life Insurance Company and its Select*Life Separate Account, filed on August 18, 2009; File No. 033-57244.) |
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(c) |
Amendment No. 2, dated as of March 31, 2015, and effective as of April 1, 2015, to the Participation Agreement dated April 25, 2008, by and between BlackRock Investments, LLC, Voya Insurance and Annuity Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York and Security Life of Denver Insurance Company. (Incorporated herein by reference to Pre-Effective Amendment No. 2 to the Form N-4 Registration Statement of Voya Insurance and Annuity Company and its Separate Account B, filed on December 7, 2015; File No. 333-202174.) |
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(d) |
Administrative Services Agreement dated April 25, 2008, by and among BlackRock Advisors, LLC and ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York. (Incorporated herein by reference to Post-Effective Amendment No. 26 to the Form N-6 Registration Statement of ReliaStar Life Insurance Company and its Select*Life Separate Account, filed on April 7, 2009; File No. 033-57244.) |
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(e) |
Amendment No. 1, dated as of April 24, 2009, and effective as of May 1, 2009, to Administrative Services Agreement dated April 25, 2008, by and among BlackRock Advisors, LLC and ING USA Annuity and Life Insurance Company and ReliaStar Life Insurance Company of New York. (Incorporated herein by reference to Post-Effective Amendment No. 27 to the Form N-6 Registration Statement of ReliaStar Life Insurance Company and its Select*Life Separate Account, filed on August 18, 2009; File No. 033-57244.) |
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(f) |
Amendment No. 2, dated as of May 28, 2015, and effective as of April 1, 2015, to Administrative Services Agreement dated April 25, 2008, as amended, by and between BlackRock Advisors, LLC and Voya Insurance and Annuity Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York and Security Life of Denver Insurance Company. (Incorporated herein by reference to Pre-Effective Amendment No. 2 to the Form N-4 Registration Statement of Voya Insurance and Annuity Company and its Separate Account B, filed on December 7, 2015; File No. 333-202174.) |
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(g) |
Rule 22C-2 Agreement, dated no later than April 16, 2007, and effective as of October 16, 2007, between BlackRock Distributors, Inc., on behalf of and as distributor for the BlackRock Funds and the Merrill Lynch family of funds and ING Life Insurance and Annuity Company, ING National Trust, ING USA Annuity and Life Insurance Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance Company and Systematized Benefits Administrators Inc. (Incorporated herein by reference to Post-Effective Amendment No. 43 to Registration Statement on form N-4, filed on April 7, 2008; File No. 333-28755.) |
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(5) |
(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. 033-74190.) |
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(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. 033-74190.) |
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(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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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. 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 3, 1999; File No. 333-90577.) |
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(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 Pre-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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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.) |
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(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.) |
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(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 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. 033-74190.) |
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(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 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.) |
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(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. 033-74190.) |
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(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. 033-74190.) |
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(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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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. 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 3, 1999; File No. 333-90577.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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.) |
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(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 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.) |
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(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 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. 033-74190.) |
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(bb) |
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. 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. 033-74190.) |
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(cc) |
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. 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.) |
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(dd) |
Service Agreement between Fidelity Investments Institutional Operations Company, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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. 033-74190.) |
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(ee) |
Rule 22C-2 Agreement, effective April 16, 2007, and to become operational on October 16, 2007, by and between Fidelity Distributors Corporation, ING Life Insurance and Annuity Company, ING National Trust, ING USA Annuity and Life Insurance Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance Company and Systematized Benefits Administrators Inc. (Incorporated herein by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-6, as filed on April 9, 2007; File No. 333-47527.) |
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(6) |
(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. 033-74190.) |
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(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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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. 033-74190.) |
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(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 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 3, 1999; File No. 333-90577.) |
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(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 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.) |
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(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 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. 033-74190.) |
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|
(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 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. 033-74190.) |
|
|
(j) |
First Amendment to Service Agreement between Security Life of Denver Insurance Company and Invesco Funds Group, Inc. (Incorporated herein by reference to 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. 033-74190.) |
|
(7) |
(a) |
Fund Participation Agreement between Janus Aspen Series and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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. 033-74190.) |
|
|
(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 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. 033-74190.) |
|
|
(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.) |
|
(8) |
(a) |
Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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. 033-74190.) |
|
|
(b) |
Amendment dated February 1, 2001, to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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. 033-74190.) |
|
|
(c) |
Amendment dated May 1, 2001, to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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. 033-74190.) |
|
|
(d) |
Amendment dated May 1, 2002, to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective Amendment No. 15 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 9, 2002; File No. 033-74190.) |
|
|
(e) |
Amendment dated May 1, 2003, to Participation Agreement among M Fund, Inc., M Financial Advisers, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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.) |
|
|
(f) |
Shareholder Information Agreement (Rule 22C-2 Agreement), dated April 16, 2007, and to be effective on October 16, 2007, by and between M Fund, Inc., M Financial Advisers, Inc. and Security Life of Denver Insurance Company. (Incorporated herein by reference to Post-Effective Amendment No. 6 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 19, 2007; File No. 333-117329.) |
|
(9) |
(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. 033-74190.) |
|
|
(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 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. 033-74190.) |
|
|
(c) |
Service Agreement between Neuberger & Berman Management Incorporated and Security Life of Denver Insurance Company. (Incorporated herein by reference to 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. 033-74190.) |
|
|
(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. 033-74190.) |
|
|
(e) |
Rule 22C-2 Agreement, effective April 16, 2007, and to become operational on October 16, 2007, by and between Neuberger Berman Management Inc., ING Life Insurance and Annuity Company, ING National Trust, ING USA Annuity and Life Insurance Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance Company and Systematized Benefits Administrators Inc. (Incorporated herein by reference to Post-Effective Amendment No. 12 to Registration Statement on Form N-6, filed on April 9, 2007; File No. 333-47527.) |
|
(10) |
(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 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.) |
|
(11) |
(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 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. 033-74190.) |
|
|
(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 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.) |
|
(12) |
(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. 033-74190.) |
|
|
(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. 033-74190.) |
|
|
(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. 033-74190.) |
|
|
(d) |
Side Letter between Van Eck Worldwide Insurance Trust and Security Life of Denver. (Incorporated herein by reference to 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. 033-74190.) |
|
(13) |
(a) |
Fund Participation, Administrative and Shareholder Services Agreement, made and entered into as of July 25, 2016, and effective on the December 31, 2015, by and between Security Life of Denver Insurance Company, Voya America Equities, Inc., Voya Investments Distributor, LLC, Voya Balanced Portfolio, Voya Government Money Market Portfolio, Voya Intermediate Bond Portfolio, Voya Investors Trust, Voya Partners, Inc., Voya Strategic Allocation Portfolios, Inc., Voya Variable Funds, Voya Variable Insurance Trust, Voya Variable Portfolios, Inc. and Voya Variable Products Trust. |
|
|
(b) |
Rule 22C-2 Agreement, effective April 16, 2007, and to become operational on October 16, 2007, by and between ING Funds Services, LLC, ING Life Insurance and Annuity Company, ING National Trust, ING USA Annuity and Life Insurance Company, ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York, Security Life of Denver Insurance Company and Systematized Benefits Administrators Inc. (Incorporated herein by reference to Post-Effective Amendment No. 12 to the Form N-6 Registration Statement of Security Life of Denver Insurance Company and its Security Life Separate Account L1, filed on April 9, 2007; File No. 333-47527.) |
|
|
||
(i) |
Not Applicable. |
||
|
|||
(j) |
Not Applicable. |
||
|
(k) |
Opinion and Consent of Counsel. |
|
|
(l) |
Not Applicable. |
|
|
(m) |
Not Applicable. |
|
|
(n) |
Consent of Independent Registered Public Accounting Firm. |
|
|
(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 |
|
Rodney O. Martin, Jr., 230 Park Avenue, New York, NY 10169 |
Director and Chairman |
|
Carolyn M. Johnson, One Orange Way, Windsor, CT 06095-4774 |
Director and President |
|
Alain M. Karaoglan, 230 Park Avenue, New York, NY 10169 |
Director |
|
Charlie P. Nelson, One Orange Way, Windsor, CT 06095-4774 |
Director |
|
Chetlur S. Ragavan, 230 Park Avenue, New York, NY 10169 |
Director, Executive Vice President and Chief Risk Officer |
|
Michael S. Smith, 1475 Dunwoody Drive, West Chester, PA 19380-1478 |
Director and Executive Vice President, Finance |
|
Patricia J. Walsh, 230 Park Avenue, New York, NY 10169 |
Executive Vice President and Chief Legal Officer |
|
Anthony J. Brantzeg, 1475 Dunwoody Drive, West Chester, PA 19380-1478 |
Senior Vice President and Actuary |
|
C. Landon Cobb, Jr., 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Senior Vice President and Chief Accounting Officer |
|
Joseph J. Elmy, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Senior Vice President, Tax |
|
Megan A. Huddleston, One Orange Way, Windsor, CT 06095-4774 |
Senior Vice President and Assistant Secretary |
|
Michael R. Katz, 1475 Dunwoody Drive, West Chester, PA 19380-1478 |
Senior Vice President and Chief Financial Officer |
|
Patrick D. Lusk, 1475 Dunwoody Drive, West Chester, PA 19380-1478 |
Senior Vice President and Appointed Actuary |
|
Justin Smith, One Orange Way, Windsor, CT 06095-4774 |
Senior Vice President and Deputy General Counsel |
|
Matt Toms, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Senior Vice President |
|
Jean Weng, 230 Park Avenue, New York, NY 10169 |
Senior Vice President and Assistant Secretary |
|
David S. Pendergrass, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Senior Vice President and Treasurer |
|
Debra M. Bell, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Vice President and Assistant Treasurer |
|
Chad M. Eslinger, 2001 21st Avenue NW, Minot, ND 58703 | Vice President and Chief Compliance Officer |
Regina A. Gordon, One Orange Way, Windsor, CT 06095-4774 | Vice President, Compliance |
Laurie Rasanen, 2001 21st Avenue NW, Minot, ND 58703 | Vice President |
Kevin J. Reimer, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 | Vice President and Assistant Treasurer |
Amy Jo Wiese, 909 Locust Street, Des Moines, Iowa, 50309 | Vice President |
Joseph N. Fick, 1475 Dunwoody Drive, West chester, PA 19380-1478 | Vice President and Illustration Actuary |
Jennifer M. Ogren, 20 Washington Avenue South, Minneapolis, MN 55401 | Secretary |
* These individuals may also be directors and/or officers of other affiliates of the Company.
Item 28 | Persons Controlled by or Under Common Control with the Depositor or the Registrant |
Incorporated herein by reference to Item 26 in Post-Effective Amendment No. 68 to Registration Statement on Form N-4 for Variable Annuity Account C of Voya Retirement Insurance and Annuity Company (File No. 333-01107), as filed with the Securities and Exchange Commission on April 4, 2017. |
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, Voya Financial, Inc. maintains Professional Liability and Fidelity Bond Employment Practices liability and Network Security insurance policies issued by an international insurer. The policies cover Voya Financial, Inc. and any company in which Voya Financial, Inc. has a controlling financial interest of 50% or more. These policies cover the funds and assets of the principal underwriter/depositor under the care, custody and control of Voya Financial, Inc. and/or its subsidiaries. The policies provide for the following types of coverage: Errors and Omissions/Professional Liability, Employment Practices liability and Fidelity/Crime (a.k.a. “Financial Institutional Bond”) and Network Security (a.k.a.”Cyber/IT”).
|
Additionally, Section 13 of the Security Life Distribution Agreement with Voya America Equities, Inc. 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 Voya America Equities, Inc.) 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. Voya 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 Security Life of Denver Insurance Company. |
||
(b) |
Management of Voya America Equities, Inc. |
||
Name and Principal Business Address |
Positions and Offices with Underwriter |
||
Kurt T. Fasen, 20 Washington Avenue South, Minneapolis, MN 55401 |
Director |
||
Chad J. Tope, 909 Locust Street, Des Moines, IA 50309 |
Director, President and Chief Executive Officer |
||
Laurie J. Rasanen, 20 Washington Avenue South, Minneapolis, MN 55401 |
Director, Vice President and Chief Operating Officer |
||
Kristine H. Hultgren, One Orange Way, Windsor, CT 06095-4774 |
Chief Financial Officer/Financial and Operations Principal |
||
Regina A. Gordon, One Orange Way, Windsor, CT 06095-4774 |
Chief Compliance Officer |
||
Megan A. Huddleston, One Orange Way, Windsor, CT 06095-4774 |
Senior Vice President and Assistant Secretary |
||
David S. Pendergrass, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Senior Vice President and Treasurer |
||
Spencer T. Shell, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Vice President and Assistant Treasurer |
||
Jean Weng, 230 Park Avenue, New York, NY 10169 |
Senior Vice President and Assistant Secretary |
||
Debra M. Bell, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Vice President and Assistant Treasurer |
||
Keith J. Reimer, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Vice President and Assistant Treasurer |
||
Cynthia S. Craytor, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Tax Officer |
||
James Ensley, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Tax Officer |
||
Terry L. Owens, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Tax Officer |
||
Keith C. Watkins, 5780 Powers Ferry Road, NW, Atlanta, GA 30327 |
Tax Officer |
||
Jennifer M. Ogren, 20 Washington Avenue South, Minneapolis, MN 55401 |
Secretary |
||
Angelia M. Lattery, 20 Washington Avenue South, Minneapolis, MN 55401 |
Assistant Secretary |
Melissa A. O’Donnell, 20 Washington Avenue South, Minneapolis, MN 55401 |
Assistant Secretary |
Tina M. Schultz, 20 Washington Avenue South, Minneapolis, MN 55401 |
Assistant Secretary |
(c) |
Compensation From the Registrant. |
|||||
(1) |
(2) |
(3) |
(4) |
(5) |
||
Name of Principal Underwriter |
2016 Net Underwriting Discounts and Commissions |
Compensation on Events Occasioning the Deduction of a Deferred Sales Load |
Brokerage Commissions |
Other Compensation* |
||
Voya America Equities, Inc. |
|
|
|
$8,863,979.00 |
||
* |
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 8055 East Tufts Avenue, Ste. 650, Denver, CO 80237-5699 and by Voya Services Company, 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, certifies that it meets all the requirements for effectiveness of this Registration Statement under Rule 485(b) under the Securities Act of 1933 and has duly caused this Post-Effective Amendment No. 13 to this Registration Statement to be signed on its behalf by the undersigned, duly authorized, in the Town of Windsor, and State of Connecticut on the 7th day of April, 2017.
|
SECURITY LIFE SEPARATE ACCOUNT L1 |
||
|
|
(Registrant) |
|
|
|
||
|
By: SECURITY LIFE OF DENVER INSURANCE COMPANY |
||
|
|
(Depositor) |
|
|
|
||
|
|
By: |
Carolyn M. Johnson* |
|
|
|
Carolyn M. Johnson |
|
|
|
President |
|
|
|
(principal executive officer) |
Pursuant to the requirements of the Securities Act of 1933, this Post-Effective Amendment No. 13 has been signed below by the following persons in the capacities indicated and on the date indicated.
Signature |
Title |
Date |
|
|
|
|
|
Carolyn M. Johnson* |
Director and President |
|
|
Carolyn M. Johnson |
(principal executive officer) |
|
|
|
|
|
|
Alain M. Karaoglan* |
Director |
|
|
Alain M. Karaoglan |
|
|
|
|
|
|
|
Rodney O. Martin, Jr.* |
Director |
|
|
Rodney O. Martin, Jr. |
|
|
|
|
|
|
|
Charles P. Nelson* |
Director |
|
|
Charles P. Nelson |
|
April |
|
|
|
7, 2017 |
|
Chetlur S. Ragavan* |
Director |
|
|
Chetlur S. Ragavan |
|
|
|
|
|
|
|
Michael S. Smith* |
Director |
|
|
Michael S. Smith |
|
|
|
|
|
|
|
C. Landon Cobb, Jr.* |
Senior Vice President and Chief Accounting Officer |
|
|
C. Landon Cobb, Jr. |
(principal accounting officer) |
|
|
|
|
|
|
Michael R. Katz* |
Senior Vice President and Chief Financial Officer |
|
|
Michael R. Katz |
(principal financial officer) |
|
|
|
|
|
|
|
|
|
|
By: |
/s/ J. Neil McMurdie |
||
|
J. Neil McMurdie |
||
|
* Attorney-in-Fact |
||
SECURITY LIFE SEPARATE ACCOUNT L1 |
|
EXHIBIT INDEX |
|
|
|
Exhibit No. |
Exhibit |
|
|
26(c)(19) |
Amendment No. 5 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company |
|
|
26(c)(24) |
Amendment No. 4 to the Intercompany Agreement between Voya Investment Management LLC and Security Life of Denver Insurance Company |
|
|
26(h)(13)(a) |
Fund Participation, Administrative and Shareholder Services Agreement, made and entered into as of July 25, 2016, and effective on the December 31, 2015, by and between Security Life of Denver Insurance Company, Voya America Equities, Inc., Voya Investments Distributor, LLC, Voya Balanced Portfolio, Voya Government Money Market Portfolio, Voya Intermediate Bond Portfolio, Voya Investors Trust, Voya Partners, Inc., Voya Strategic Allocation Portfolios, Inc., Voya Variable Funds, Voya Variable Insurance Trust, Voya Variable Portfolios, Inc. and Voya Variable Products Trust |
|
|
26(k) |
Opinion and Consent of Counsel |
|
|
26(n) |
Consent of Independent Registered Public Accounting Firm |
|
|
26(r) |
Powers of Attorney |
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Exhibit 26(c)(19): Amendment No. 5 to the Intercompany Agreement between Directed Services LLC and Security Life of Denver Insurance Company
Amendment No. 5 TO THE INTERCOMPANY AGREEMENT
This Amendment No. 5, effective as of March 01, 2016, amends the Intercompany Agreement, dated as of December 22, 2010, as amended (the “Agreement”), by and between Directed Services LLC (“DSL”) and Security Life of Denver Insurance Company (“SLD”).
W I T N E S S E T H
WHEREAS, DSL is an investment adviser for certain U.S. registered investment companies (“Funds”) and a registered broker-dealer distributing variable insurance contracts; and
WHEREAS, SLD is an insurance company which offers a variety of insurance products, including variable annuities; Funds advised by DSL are made available through sub-accounts to purchasers of these insurance products; and
WHEREAS, DSL pays to SLD the amounts derived from applying the annual rates listed in Schedule A against the average net assets invested in the Funds by SLD and by SLD non-insurance customers during the prior calendar month; and
WHEREAS, Schedule A is reviewed at least once each calendar quarter and may be modified at any time by mutual written consent; and.
WHEREAS, the parties desire to clarify the Agreement by replacing Schedule A;
NOW, THEREFORE, the parties agree as follows:
1. Schedule A to the Agreement is deleted in its entirety and is replaced with the attached Amended Schedule A.
2. Capitalized terms used in this Amendment and not otherwise defined shall have the meanings ascribed to them in the Agreement.
3. This Amendment may be executed in several counterparts, each of which shall be an original, but all of which together will constitute one and the same instrument.
4. In all other respects, the Agreement is hereby confirmed and remains in full force and effect.
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 5 to be executed as of the day and year first above written.
DIRECTED SERVICES LLC |
SECURITY LIFE OF DENVER INSURANCE COMPANY |
By: /s/ Shaun P. Mathews |
By: /s/ Lisa S. Gilarde |
Name: Shaun P. Mathews |
Name: Lisa S. Gilarde |
Title: _______________________________ |
Title: Vice President |
Amended Schedule A |
||
This Schedule is effective as of March 1, 2016. |
||
As described in Section 1
SLD shall be paid at the rates set forth immediately below. In the case of
funds of funds, payments will apply to the shares of the fund of funds held
directly at the rate specified and will also apply to shares of underlying
funds held indirectly through the fund of funds at the rates specified for
those underlying funds calculated in the same manner as if the underlying
funds were held directly. No payments will be made with respect to assets in
Class R6 Shares or Class Z Shares of the funds. |
||
Fund Type |
Fund |
Rate |
Fidelity Feeder |
VY® Fidelity® VIP Contrafund® Portfolio |
X.XX% |
Fidelity Feeder |
VY® Fidelity® VIP Equity-Income Portfolio |
X.XX% |
Fidelity Feeder |
VY® Fidelity® VIP Mid Cap Portfolio |
X.XX% |
Funds of Funds |
Voya Index Solution Portfolios |
X.XXX% |
Funds of Funds |
Voya Retirement Portfolios |
X.XXX% |
Funds of Funds |
Voya Solution Portfolios |
X.XXX% |
VIM Equity/Balanced |
Voya Large Cap Growth Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Large Cap Value Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya U.S. Stock Index Portfolio |
X.XXX% |
VIM Fixed |
Voya Global Bond Portfolio |
X.XXX% |
VIM Fixed |
Voya High Yield Portfolio |
X.XXX% |
VIM Fixed |
Voya Limited Maturity Bond Portfolio |
X.XXX% |
VIM Fixed |
Voya Liquid Assets Portfolio |
X.XXX% |
VIT Portfolios |
VY® BlackRock Inflation Protected Bond Portfolio |
X.XXX% |
VIT Portfolios |
VY® Clarion Real Estate Portfolio |
X.XXX% |
VIT Portfolios |
VY® FMR Diversified Mid Cap Portfolio |
X.XXX% |
VIT Portfolios |
VY® Franklin Income Portfolio |
X.XXX% |
VIT Portfolios |
VY® Invesco Growth and Income Portfolio |
X.XXX% |
VIT Portfolios |
VY® JPMorgan Emerging Markets Equity Portfolio |
X.XXX% |
VIT Portfolios |
VY® JPMorgan Small Cap Core Equity Portfolio |
X.XXX% |
VIT Portfolios |
VY® Morgan Stanley Global Franchise Portfolio |
X.XXX% |
VIT Portfolios |
Voya Multi-Manager Large Cap Core Portfolio |
X.XXX% |
VIT Portfolios |
VY® T. Rowe Price Capital Appreciation Portfolio |
X.XXX% |
VIT Portfolios |
VY® T. Rowe Price Equity Income Portfolio |
X.XXX% |
VIT Portfolios |
VY® T. Rowe Price International Stock Portfolio |
X.XXX% |
VIT Portfolios |
VY® Templeton Global Growth Portfolio |
X.XXX% |
VPI Portfolios |
VY® American Century Small-Mid Cap Value Portfolio |
X.XXX% |
VPI Portfolios |
VY® Baron Growth Portfolio |
X.XXX% |
VPI Portfolios |
VY® Columbia Contrarian Core Portfolio |
X.XXX% |
VPI Portfolios |
VY® Columbia Small Cap Value II Portfolio |
X.XXX% |
VPI Portfolios |
VY® Invesco Comstock Portfolio |
X.XXX% |
VPI Portfolios |
VY® Invesco Equity and Income Portfolio |
X.XXX% |
VPI Portfolios |
VY® JPMorgan Mid Cap Value Portfolio |
X.XXX% |
VPI Portfolios |
VY® Oppenheimer Global Portfolio |
X.XXX% |
VPI Portfolios |
VY® Pioneer High Yield Portfolio |
X.XXX% |
VPI Portfolios |
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio |
X.XXX% |
VPI Portfolios |
VY® T. Rowe Price Growth Equity Portfolio |
X.XXX% |
VPI Portfolios |
VY® Templeton Foreign Equity Portfolio |
X.XXX% |
Exhibit 26(c)(24): Amendment No. 4 to the Intercompany Agreement between Voya Investment Management LLC and Security Life of Denver Insurance Company
This Amendment No. 4, effective as of March 01, 2016, amends the Intercompany Agreement, dated as of December 22, 2010, as amended (the “Agreement”), by and between ING Investment Management LLC (“IIM”), (now known as “Voya Investment Management LLC” or “VIM”) and Security Life of Denver Insurance Company (“SLD”).
WITNESSETH
WHEREAS, VIM conducts an asset management business through various companies that provides investment advice to and perform administrative services for certain U.S. registered investment companies (“Funds”), including Voya Investments, LLC (“VIL”), an investment adviser for certain Funds; and
WHEREAS, VRIAC is an insurance company which offers a variety of insurance products, including variable annuities and which also provides administrative services to various tax-advantaged plans and programs established under Section 401(a), 403(b), 457 or 408 of the Internal Revenue Code (“Code”), certain non-qualified deferred compensation arrangements, and to custodial accounts established under Code Sections 403(b)(7) or 408 (collectively “non-insurance customers”); and
WHEREAS, VIM, pays and/or causes its subsidiaries to pay, to SLD the amounts derived from applying the annual rates listed in Schedule A against the average net assets invested in the funds by SLD non-insurance customers during the prior calendar month; and
WHEREAS, Schedule A is reviewed at least once each calendar quarter and may be modified at any time by mutual written consent; and
WHEREAS, the parties desire to clarify the Agreement to (1) reflect the name change of VIM and SLD, the Funds and each of their series of portfolios, and; (2) replace Schedule A; and
NOW, THEREFORE, the parties agree as follows:
1. All references to “ING Investment Management LLC” and “IIM” in the Agreement and hereby deleted and replaced with “Voya Investment Management LLC” and “VIM”, respectively.
2. Schedule A to the Agreement is deleted in its entirety and is replaced with the attached Amended Schedule A.
3. Capitalized terms used in this Agreement and not otherwise defined shall have the meanings ascribed to them in the Agreement.
1 |
4. The Amendment may be executed in several counterparts, each of which shall be an original, but all of which together will constitute one and the same instrument.
5. In all other respects, the Agreement is hereby confirmed and remains in full force and effect.
[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]
.
2 |
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 4 to be executed as of the day and year first above written.
VOYA INVESTMENT MANAGEMENT SECURITY LIFE OF DENVER INSURANCE
LLC COMPANY
By: /s/ Michael Bell By: /s/ Lisa S. Gilarde
Name: Michael Bell Name: Lisa S. Gilarde
Title: CFO Title: Vice President
3 |
Amended Schedule A |
||
This Schedule is effective as of March 1, 2016. |
||
As
described in Section 1 SLD shall be paid at the rates set forth immediately
below. In the case of funds of funds, payments will apply to the shares of
the fund of funds held directly at the rate specified and will also apply to
shares of underlying funds held indirectly through the fund of funds at the
rates specified for those underlying funds calculated in the same manner as
if the underlying funds were held directly. No payments will be made with
respect to assets in Class R6 Shares or Class Z Shares of the funds. |
||
Fund Type |
Fund |
Rate |
3rd Party SA |
VY Clarion Global Real Estate Portfolio |
X.XXX% |
3rd Party SA |
Voya Emerging Markets Equity Dividend Fund |
X.XXX% |
3rd Party SA |
Voya Global Equity Dividend Fund |
X.XXX% |
3rd Party SA |
Voya Global Real Estate Fund |
X.XXX% |
3rd Party SA |
Voya International Core Fund |
X.XXX% |
3rd Party SA |
Voya International Real Estate Fund |
X.XXX% |
3rd Party SA |
Voya Multi-Manager Emerging Markets Equity Fund |
X.XXX% |
3rd Party SA |
Voya Multi-Manager International Equity Fund |
X.XXX% |
3rd Party SA |
Voya Multi-Manager Mid Cap Value Fund |
X.XXX% |
3rd Party SA |
Voya Multi-Manager International Small Cap Fund |
X.XXX% |
3rd Party SA |
Voya Real Estate Fund |
X.XXX% |
3rd Party SA |
Voya Russia Fund |
X.XXX% |
Fund of Funds |
Voya Capital Allocation Fund |
X.XX% |
Fund of Funds |
Voya Diversified International Fund |
X.XX% |
Fund of Funds |
Voya Global Perspectives Fund |
X.XX% |
Fund of Funds |
Voya Global Perspectives Portfolio |
X.XX% |
Fund of Funds |
Voya Global Target Payment Fund |
X.XX% |
Fund of Funds |
Voya Index Solution Portfolios |
X.XX% |
Fund of Funds |
Voya Retirement Portfolios |
X.XX% |
Fund of Funds |
Voya Target Retirement Funds |
X.XX% |
Fund of Funds |
Voya Solution Portfolios |
X.XX% |
Fund of Funds |
Voya Strategic Allocation Portfolios |
X.XX% |
Pooled Inv Vehicle |
Voya Emerging Markets Corporate Debt Fund |
X.XX% |
Pooled Inv Vehicle |
Voya Emerging Markets Hard Currency Debt Fund |
X.XX% |
Pooled Inv Vehicle |
Voya Emerging Markets Local Currency Debt Fund |
X.XX% |
Pooled Inv Vehicle |
Voya Securitized Credit Fund |
X.XX% |
VIM Equity/Balanced |
Voya Australia Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Balanced Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Corporate Leaders 100 Fund |
X.XXX% |
VIM Equity/Balanced |
Voya Corporate Leaders Trust Fund Series B |
X.XXX% |
VIM Equity/Balanced |
Voya Emerging Markets Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Euro STOXX 50 Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya FTSE 100 Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Global Value Advantage Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Growth and Income Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Hang Seng Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Index Plus LargeCap Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Index Plus MidCap Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Index Plus SmallCap Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya International Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Japan TOPIX Index® Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Large-Cap Growth Fund |
X.XXX% |
VIM Equity/Balanced |
Voya Large Cap Growth Portfolio |
X.XX% |
VIM Equity/Balanced |
Voya Large Cap Value Fund |
X.XXX% |
VIM Equity/Balanced |
Voya Large Cap Value Portfolio |
X.XX% |
4 |
VIM Equity/Balanced |
Voya Mid Cap Value Advantage Fund |
X.XXX% |
VIM Equity/Balanced |
Voya MidCap Opportunities Fund |
X.XXX% |
VIM Equity/Balanced |
Voya MidCap Opportunities Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Russell™ Large Cap Growth Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Russell™ Large Cap Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Russell™ Large Cap Value Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Russell™ Mid Cap Growth Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Russell™ Mid Cap Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Russell™ Small Cap Index Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya Small Company Fund |
X.XXX% |
VIM Equity/Balanced |
Voya Small Company Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya SmallCap Opportunities Fund |
X.XXX% |
VIM Equity/Balanced |
Voya SmallCap Opportunities Portfolio |
X.XXX% |
VIM Equity/Balanced |
Voya U.S. Stock Index Portfolio |
X.XXX% |
VIM Fixed |
Voya Diversified Emerging Markets Debt Fund |
X.XXXX% |
VIM Fixed |
Voya Floating Rate Fund |
X.XXXX% |
VIM Fixed |
Voya Global Bond Fund |
X.XXXX% |
VIM Fixed |
Voya Global Bond Portfolio |
X.XX% |
VIM Fixed |
Voya GNMA Income Fund |
X.XXXX% |
VIM Fixed |
Voya High Yield Bond Fund |
X.XXXX% |
VIM Fixed |
Voya High Yield Portfolio |
X.XX% |
VIM Fixed |
Voya Intermediate Bond Fund |
X.XXXX% |
VIM Fixed |
Voya Intermediate Bond Portfolio |
X.XXXX% |
VIM Fixed |
Voya Investment Grade Credit Fund |
X.XXXX% |
VIM Fixed |
Voya Limited Maturity Bond Portfolio |
X.XX% |
VIM Fixed |
Voya Liquid Assets Portfolio |
X.XXX% |
VIM Fixed |
Voya Money Market Fund |
X.XXXX% |
VIM Fixed |
Voya Money Market Portfolio |
X.XXXX% |
VIM Fixed |
Voya Senior Income Fund |
X.XXXX% |
VIM Fixed |
Voya Short Term Bond Fund |
X.XXXX% |
VIM Fixed |
Voya Strategic Income Opportunities Fund |
X.XXXX% |
VIM Fixed |
Voya U.S. Bond Index Portfolio |
X.XXX% |
VIT Portfolios |
Voya Multi-Manager Large Cap Core Portfolio |
X.XXX% |
VIT Portfolios |
VY® BlackRock Inflation Protected Bond Portfolio |
X.XXX% |
VIT Portfolios |
VY® Clarion Real Estate Portfolio |
X.XXX% |
VIT Portfolios |
VY® FMR Diversified Mid Cap Portfolio |
X.XXX% |
VIT Portfolios |
VY® Franklin Income Portfolio |
X.XXX% |
VIT Portfolios |
VY® Invesco Growth and Income Portfolio |
X.XXX% |
VIT Portfolios |
VY® JPMorgan Emerging Markets Equity Portfolio |
X.XXX% |
VIT Portfolios |
VY® JPMorgan Small Cap Core Equity Portfolio |
X.XXX% |
VIT Portfolios |
VY® Morgan Stanley Global Franchise Portfolio |
X.XXX% |
VIT Portfolios |
VY® T. Rowe Price Capital Appreciation Portfolio |
X.XXX% |
VIT Portfolios |
VY® T. Rowe Price Equity Income Portfolio |
X.XXX% |
VIT Portfolios |
VY® T. Rowe Price International Stock Portfolio |
X.XXX% |
VIT Portfolios |
VY® Templeton Global Growth Portfolio |
X.XXX% |
VPI Portfolios |
VY® American Century Small-Mid Cap Value Portfolio |
X.XXX% |
VPI Portfolios |
VY® Baron Growth Portfolio |
X.XXX% |
VPI Portfolios |
VY® Columbia Contrarian Core Portfolio |
X.XXX% |
VPI Portfolios |
VY® Columbia Small Cap Value II Portfolio |
X.XXX% |
VPI Portfolios |
VY® Invesco Comstock Portfolio |
X.XXX% |
VPI Portfolios |
VY® Invesco Equity and Income Portfolio |
X.XXX% |
VPI Portfolios |
VY® JPMorgan Mid Cap Value Portfolio |
X.XXX% |
VPI Portfolios |
VY® Oppenheimer Global Portfolio |
X.XXX% |
VPI Portfolios |
VY® Pioneer High Yield Portfolio |
X.XXX% |
VPI Portfolios |
VY® T. Rowe Price Diversified Mid Cap Growth Portfolio |
X.XXX% |
VPI Portfolios |
VY® T. Rowe Price Growth Equity Portfolio |
X.XXX% |
VPI Portfolios |
VY® Templeton Foreign Equity Portfolio |
X.XXX% |
For the fund of funds listed above, VIM will pay the amount stated in this Schedule A. VIM will not pay any amounts on assets in the underlying funds in these fund of funds. In addition, amounts due to SLD from VIM for these fund of funds shall be reduced by amounts due to SLD from Directed Services LLC (DSL) and/or its subsidiaries under the Intercompany Agreement between DSL and SLD with respect to the underlying funds in these fund of funds. |
5 |
Exhibit 26(h)(13)(a): Fund Participation, Administrative and Shareholder Services Agreement, made and entered into as of July 25, 2016, and effective on the December 31, 2015, by and between Security Life of Denver Insurance Company, Voya America Equities, Inc., Voya Investments Distributor, LLC, Voya Balanced Portfolio, Voya Government Money Market Portfolio, Voya Intermediate Bond Portfolio, Voya Investors Trust, Voya Partners, Inc., Voya Strategic Allocation Portfolios, Inc., Voya Variable Funds, Voya Variable Insurance Trust, Voya Variable Portfolios, Inc. and Voya Variable Products Trust.
FUND PARTICIPATION, ADMINISTRATIVE AND SHAREHOLDER SERVICE AGREEMENT
THIS AGREEMENT (the Agreement) is made and entered into as of this 25th day of July, and effective on the Effective Date, as defined below, by and between Security Life of Denver Insurance Company (the "Company), Voya America Equities, Inc. (Company Distributor) (Company together with Company Distributor, Company Parties), and, Voya Investments Distributor, LLC (the "Distributor") and each non-retail, insurance dedicated, registered investment company listed on Schedule A (each a Registrant) on its own behalf and on behalf of each of its series or classes of shares described in Schedule B hereto (each a Fund and collectively, the Funds and each a Class and collectively the Classes, as applicable).
WHEREAS, each Registrant issues a separate series of shares of beneficial interest for each Fund representing a fractional undivided interest in that Fund; and
WHEREAS, Distributor acts as principal underwriter for the Funds; and
WHEREAS, the Funds are available to offer shares of one or more of its series to separate accounts of insurance companies established for variable annuity contracts and variable life insurance policies and to serve as an investment medium for variable annuity contracts and variable life insurance policies offered by insurance companies that have entered into participation agreements substantially similar to this agreement ("Participating Insurance Companies"); and
WHEREAS, Company is an insurance company that is a provider of multi-fund variable insurance and retirement products; and
WHEREAS, in connection with its retirement products, the Company issues or will issue variable annuity contracts and variable funding agreements (the "Contracts") to certain plans under Sections 401,403(b), 457 or 408 of the Internal Revenue Code of 1986, as amended from time to time (Tax Code), and certain nonqualified deferred compensation arrangements, (the, Plans) supported in whole or in part by Company separate accounts (the "Separate Accounts"1); and
WHEREAS, under this Agreement, such Plans are only permitted to invest in the Funds indirectly through Contracts issued by the Company; and
WHEREAS, the Company has established and may establish in the future separate accounts to serve as an underlying investment vehicle for the Contracts; and
WHEREAS, the Company will offer units of the Separate Accounts that may in turn invest in shares of the Funds; and
WHEREAS, the Company will provide various administrative, recordkeeping and shareholder services, such as the maintenance of account records for Plan participants (Plan Participants), in connection with the investment in the Funds through the Contracts; and
WHEREAS, Company Distributor distributes the Contracts supported by the Separate Accounts that may in turn invest in shares of the Funds; and
1 As used in the Agreement, Separate Accounts refer to separate accounts that fund retirement products and expressly exclude separate accounts that fund variable annuity contracts or variable life insurance policies, but only to the extent that they fund such contacts or policies.
WHEREAS, the Funds have obtained an order from the SEC granting certain insurance companies and certain insurance company separate accounts exemptions from the provisions of sections 9(a), 13(a), 15(a), and 15(b) of the 1940 Act and Rules 6c-2(b)(l5) and 6e-3(T)(b)(15) thereunder, to the extent necessary to permit shares of the Funds to be sold to and held by: (a) certain separate accounts of both affiliated and unaffiliated life insurance companies; and (b) certain qualified pension and retirement plans that are arrangements within the meaning of Section 817-5(f)(3)(iii) of the Tax Code and the regulations thereunder, outside of the separate account context (hereinafter the "Mixed and Shared Funding Exemptive Order"); and
WHEREAS, Company desires to submit orders to effect transactions in shares of the Fund for investors. Such investors may include existing and prospective customers (Customers) of Company. The term Customers, as used in this Agreement, shall include Plans, Plan Representatives, Plan Participants, and Contract owners, as the context requires).
NOW, THEREFORE, it is agreed as follows:
1. Separate Accounts.
The Company represents that each of the Separate Accounts is a separate account under Colorado insurance law and that it has registered or will register each of the Separate Accounts (except for such Accounts for which no such registration is required) as a unit investment trust under the Investment Company Act of 1940 (the "1940 Act"), to serve as an investment vehicle for the Contracts. Each Separate Account is a "segregated asset account" and interests in each Separate Account are offered exclusively through the purchase of or transfer into a "variable contract" within the meaning of such terms under Section 817 of the Tax Code and the regulations thereunder. The Company further represents that it believes, in good faith, that the Contracts are currently, and at the time of issuance shall be, treated as endowment, life insurance or annuity insurance contracts, under applicable provisions of the Code and that it will make every effort to maintain such treatment and that it will notify the Fund and the Distributor immediately upon having a reasonable basis for believing that said requirements have ceased to be met or that they might not be met in the future. The Company agrees that any prospectus offering a contract that is a modified endowment contract as that term is defined in Section 7702A of the Internal Revenue Case (or any successor or similar provision), shall identify such contract as a modified endowment contract. Each Contract provides for the allocation of net amounts received by the Company to a Separate Account for investment in the shares of one or more Funds available through that Separate Account as an underlying investment vehicle. Selection of a particular Registrant, and changes therein from time to time, are made by the Contract owner or Plan Participant, as applicable under a particular Contract. For purposes of this Agreement, the Company shall make the Funds available through Contracts issued to Plans.
2. Account.
With respect to each Fund, a single account held in the name of the Company shall be maintained for those assets directed for investment in a Fund through the Contracts. (Such account shall be referred to herein as the "Account.") The Company, as issuer of the Contracts, shall facilitate purchase and sale transactions with respect to the Account in accordance with the Agreement.
3. Services to be Performed by the Company and/or Company Distributor.
(a) The Company shall be responsible for performing certain recordkeeping and administrative services (collectively, Sub-TA Services) with respect to all of the separate accounts, which shall include without limitation:
o Providing subaccounting services and maintaining accurate subaccounting records regarding shares beneficially owned by Customers; o Calculating daily valuation of Participant account value; o Providing a fund scorecard to help assess performance of the Funds;
o Furnishing (either separately or on an integrated basis with other reports sent to a Customer by the Company) statements and confirmations of all purchases and redemption requests as may be required by agreement between the Company and the Customers; o Providing tax reporting; o Providing and maintaining elective services for Customers such as check writing and wire transfer services; o Processing Customer purchase and redemption requests that affect allocations to the Funds and placing purchase and redemption instructions with the Funds' transfer agent, including any designee thereof, ("Transfer Agent") in the manner described in Section 4 hereof; o Processing dividend and distribution payments from the Fund on behalf of Customers; o Monitoring Customers for compliance with the applicable frequent trading policy; o Cooperating with the other parties to the Agreement to facilitate implementation of each other's anti-money laundering program; o Providing such other related recordkeeping and administrative services upon which the Funds and the Company may mutually agree.
(b) The Company and/or Company Distributor shall be responsible for performing certain shareholder services (Shareholder Services) with respect to the separate accounts, which shall include without limitation:
o Assisting Plan Participants in designating and changing dividend options, account designations and addresses; o Establishing and maintaining accounts and records relating to Plan Participants; o Answering questions and handling correspondence from Customers about their accounts and the Funds; o Maintaining participant account records that reflect allocations to the Funds; o Facilitating the tabulation of votes in the event of a meeting of shareholders; o Transmitting proxy statements and other proxy solicitation materials, annual and semi-annual reports, the Funds then current prospectuses and/or summary prospectuses (in each case, the "Prospectus") and other communications from the Funds to Customers as may be required by all applicable federal and state laws, rules, and regulations, including the rules of a self-regulatory organization (Applicable Law) and by agreement between the Company and the Customers; o Receiving Customer purchase and redemption requests for shares that reflect allocations to the Funds; and o Providing such other related services upon which the Distributor and the Company or Company Distributor may mutually agree.
(c) The Company and/or Company Distributor shall perform some or all of the following sales support services (Distribution Services) related to the distribution of shares to the Separate Accounts that invest in the Funds, which shall include without limitation:
o Preparing advertising, educational and marketing materials that lists the Funds; o Assisting Customers in completing application forms including allocations to the Funds; o Developing, preparing, printing and mailing of advertisements, sales literature and other promotional materials describing and/or relating to the Funds; o Holding seminars and sales meetings designed to promote the sale of Fund shares; Providing a dedicated plan sponsor website; o Providing a dedicated Plan Participant website; o Providing participant bench-marking tools, calculators and newsletters o Training sales personnel regarding a Fund; and o Any other activity that the Distributor determines is primarily intended to result in the sale of a Fund's shares.
(d) The Company and/or Company Distributor shall each provide all personnel, facilities and equipment reasonably necessary in order for it to perform the functions described in this section with respect to the Customers. The Company Parties shall exercise reasonable care in performing all such services.
4. Pricing Information, Orders, Settlement.
(a) Distributor will make shares available to be purchased by the Company, on behalf of the Account, at the net asset value (NAV) applicable to each order; provided, however, that the Separate Accounts meet the criteria for purchasing shares of the Funds at NAV as described in the Funds Prospectuses and SAIs. The Company agrees to purchase and redeem the shares of the Funds in accordance with the provisions of the terms of its then-current Prospectus and SAIs. Unless provided otherwise by a Funds then-current Prospectus or SAI, Fund shares shall be purchased and redeemed on a net basis for such Separate Accounts in such quantity and at such time determined by the Company to correspond with investment instructions received by the Company from Contract owners, Plan Representatives or Plan Participants. The Board of Trustees of the Fund (hereinafter the "Trustees") may upon reasonable notice to the Company, refuse to sell shares of any Fund to any person, or suspend, or terminate the offering of any shares of any Fund, or liquidate any Fund if such action is required by law or by regulatory authorities having jurisdiction or is, in the sole discretion of the Trustees, acting in good faith and in the best interests of the Funds' shareholders and in compliance with their fiduciary obligations under federal and/or any applicable state laws. The Company acknowledges that orders accepted by it in violation of a Funds stated policies may be subsequently revoked or cancelled by Distributor and that the Distributor and the Funds shall not be responsible for any losses incurred by the Company or any Customer as a result of such cancellation.
Distributor or its agent shall notify the Company of any such cancellation prior to 12:00 p.m. Eastern Time on the next Business Day (defined below).
(b) Distributor agrees to furnish or cause to be furnished to the Company Distributor for each Fund: (i) confirmed NAV information as of the close of trading (normally 4:00 p.m., East Coast time) on the New York Stock Exchange ("Close of Trading") on each complete business day that the New York Stock Exchange is open for business ("Business Day") or at such other time as the NAV of a Fund is calculated as disclosed in the relevant then current Prospectus(es) in a format that includes the Funds name and the change from the last calculated NAV, (ii) dividend and capital gains information as it arises, and (iii) in the case of a fixed income fund, the daily accrual or the distribution rate factor. The Company hereby elects to receive all dividends and distributions as are payable on a Funds shares in the form of additional shares of that Fund. The Fund will notify the Company of the number of shares so issued as payment of such dividends and distributions. The Company retains the right to revoke this election upon 10 business days prior written notice to the Distributor, pursuant to Section 15(e) and to receive all such dividends and distributions in cash. Distributor shall provide or cause to be provided to the Company Distributor such information by 7:00 p.m., East Coast time on a best efforts basis. If Distributor is unable to provide the Company Distributor such information by 7:00 p.m., East Coast time, Distributor or its designee will communicate by phone and/or e-mail with the Company Parties, as soon as reasonably practicable upon learning of such inability, regarding the estimated time such data will be available and transmitted. In such event, Distributor will continue to communicate by phone and/or e-mail with the Company Parties until it has verified that the data is received by the Company Parties.
(c) Company Distributor as agent for the Funds solely for the purposes expressed herein shall receive from Contract owners, Plan Representatives or Plan Participants for acceptance as of the Close of Trading on each Business Day orders for the purchase of shares of the Funds, exchange orders, and redemption requests and redemption directions with respect to shares of the Funds held by the Company on behalf of its Separate Accounts ("Instructions"). In addition, the Company Distributor shall (i) transmit to Distributor such Instructions no later than 9:00 a.m., East Coast time on the next following Business Day, and (ii) upon acceptance of any such Instructions, communicate such acceptance to the Contract owners, Plan Representatives or Plan Participants, as
appropriate ("Confirmation"). The Business Day on which such Instructions are received in proper form by Company Distributor and time stamped by the Close of Trading will be the date as of which Fund shares shall be deemed purchased, exchanged, or redeemed as a result of such Instructions ("Trade Date"). Instructions received in proper form by Company Distributor and time stamped after the Close of Trading on any given Business Day shall be treated as if received on the next following Business Day. Company Distributor agrees that all Instructions received by Company Distributor, which will be transmitted to Distributor for processing as of a particular Business Day, will have been received and time stamped prior to the Close of Trading on that Business Day.
(d) Company Distributor will wire payment, or arrange for payment to be wired, for such purchase orders, in immediately available funds, to a Fund custodial account or accounts designated by Distributor, as soon as possible, but in any event no later than the Close of Trading on the Business Day after the Trade Date and no later than the close of the Federal Reserve wire on the Business Day after the Trade Date. If the wire is not received by such time, and the delay was not caused by the negligence or willful misconduct of the Distributor, Distributor shall be entitled to receive from the Company Distributor the dollar amount of any overdraft plus any associated bank charges incurred; provided however, that if the delay was due to factors beyond the control of the Company Distributor, the Company Distributor shall not be liable for any overdraft or any associated bank charges.
(e) Distributor or its designees will wire payment, or arrange for payment to be wired, for redemption orders, in immediately available funds, to an account or accounts designated by Company Distributor, as soon as possible, but in any event no later than the Close of Trading on the Business Day after the Trade Date and no later than the close of the Federal Reserve wire on the Business Day after the Trade Date. If the wire is not received by such time, and the delay was not caused by the negligence or willful misconduct of the Company Distributor, the Company Distributor shall be entitled to receive from Distributor the dollar amount of any overdraft plus any associated bank charges incurred; provided however, that if the delay was due to factors beyond the control of the Distributor, Distributor shall not be liable for any overdraft or any associated bank charges. The Funds reserve the right to suspend redemptions consistent with the requirements of Section 22(e) under the 1940 Act and any rules thereunder. The Funds will not bear any responsibility whatsoever for the proper disbursement or crediting or redemption proceeds; the Company Parties alone will be responsible for such action.
(f) In lieu of applicable provisions set forth in paragraphs 4(b) through 4(e) above, the parties may agree to execute orders and wire payments for purchases and redemptions through National Securities Clearing Corporation's Fund/SERV System, in which case such activities will be governed by the provisions set forth in Exhibit I to this Agreement. In addition, the parties may also provide pricing information in accordance with Exhibit I.
(g) Upon Distributors request, the Company shall provide copies of historical records relating to transactions between the Funds and the Contract owners, Plan Representatives or Plan Participants investing in such Funds, written communications regarding the Funds to or from such persons, and other materials, in each case, as may reasonably be requested to enable Distributor or its agent, including without limitation, auditors, investment advisers, or transfer agents of the Funds to monitor and review the services being provided under this Agreement, or to comply with any request of a governmental body or self-regulatory organization or a shareholder. The Company also agrees that the Company will permit the Distributor, the Registrant and/or the Funds, or their agents to have reasonable access to the Companys personnel and records in order to facilitate the monitoring of the quality of the services being provided under this Agreement.
(h) Company Parties agree and acknowledge that it will be their responsibility for determining that the recommendations to its Customers to purchase shares in the separate accounts that invest in the Funds are suitable to the extent required by applicable law. In particular, each agrees, if required by applicable law, that they are
solely responsible for ensuring that the fee structures as well as the Contract and any Funds used as an investment vehicle that is selected by its Customers are suitable and appropriate given their circumstances.
(i) Company Parties acknowledge and agree that they are solely responsible and liable for the conduct of any subcontractor or party they employ to fulfill obligations under this Agreement. It is the responsibility of the Company Parties to ensure that these sub-contractors comply with the terms of this Agreement and applicable laws and regulations. Company also acknowledges that it shall be financially responsible for the actions of subcontractors and shall reimburse the Fund(s) and/or Distributor directly for any actions of the sub-contractors that violate this Agreement. It shall be the Company Parties responsibility to seek reimbursement from the subcontractors. Specifically, Company Distributor has entered into selling agreements (Selling Agreements) with both affiliated and unaffiliated broker/dealers whose registered representatives are engaged directly or indirectly in the offer or sale of the Contracts in accordance with the terms of such Selling Agreement. Under the terms of the Selling Agreements, the broker/dealer is responsible for ensuring that its registered representatives comply with all applicable state, federal and securities laws and such other duties as set forth in the Selling Agreements.
Notwithstanding the foregoing, the Company Distributor represents that such other broker/dealers are bound to terms substantially similar to those in this Agreement.
(j) All parties agree that issuance and transfer of each Funds shares will be by book entry only. Stock certificates will not be issued to the Company or the Separate Account(s). Shares purchased from each Fund will be recorded in an appropriate title for the Company
(k) Company Distributor shall assume responsibility as herein described for any loss to Distributor, the Registrants and/or to a Fund caused by a cancellation or correction made to an Instruction by a Contract owners, Plan Representatives or Plan Participants subsequent to the date as of which such Instruction has been received by Company Distributor and originally relayed to Distributor, and Company Distributor will immediately pay such loss to Distributor, the Registrants and/or such Fund upon Company Distributors receipt of written notification, with supporting data.
(l) The Funds and the Distributor, in each case solely to the extent relating to such partys responsibilities hereunder, shall indemnify and hold Company Parties harmless, from the Effective Date of this Agreement, against any amount the Company Parties are required to pay to Customers attributable to: (i) an incorrect calculation of a Funds daily NAV, dividend rate, or capital gains distribution rate or (ii) incorrect or late reporting of the daily NAV, dividend rate, or capital gain distribution rate of a Fund, upon written notification by Company, with supporting data, to Distributor (each, a pricing error). A pricing error as described shall be corrected as follows: (i) if the pricing error results in a difference between the erroneous NAV and the correct NAV of less than $0.01 per share, then no corrective action need be taken; and (ii) if the pricing error results in a difference between the erroneous NAV and the correct NAV equal to or greater than 1/2 of 1% of the Fund's NAV at the time of the error, then the applicable Fund shall reimburse the Company for the costs of adjustments made to correct a Contract owners, a Plans or a Plan Participants account in accordance with the provisions of this Section 4(l). If an adjustment is necessary to correct a material error which has caused a Contract owner, a Plan or a Plan Participant to receive less than the amount to which they are entitled, the number of shares of the applicable sub-account of such Contract owner, Plan or Plan Participant will be adjusted and the amount of any underpayments shall be credited by each Fund to the Company for crediting of such amounts to the applicable Contract owners, Plans or Plan Participants accounts. Upon notification by each Fund of any overpayment due to a material error, the Company shall promptly remit to Fund any overpayment that has not been paid to a Contract owner, a Plan or a Plan Participant. In no event shall the Company be liable to a Contract owner, a Plan or a Plan Participant for any such adjustments or underpayment amounts. A pricing error within items (i) and (ii) above shall be deemed to be "materially incorrect" or constitute a "material error" for purposes of this Agreement. In addition, the Fund or the Distributor shall be liable to Company Parties for systems and out of pocket costs
incurred by Company Parties in making a Contract owners, a Plans or a Plan Participants account whole, if such costs or expenses are a direct result of the Funds failure to provide timely or correct NAVs, dividend and capital gains or financial information. In such an event, Company shall notify Distributor of the aggregate amount of the redemption shortfalls and provide supporting documentation for such amount. Upon receipt of such documentation, Distributor shall cause the relevant Fund to remit to the Company any additional redemption proceeds, as prescribed above, in the amount of such redemption shortfalls and the Company shall apply such funds to payment of the redemption shortfalls. If a mistake is caused in supplying such information or confirmations, which results in reconciliation with incorrect information, the amount required to make a Contract owners, a Plans or a Plan Participants account whole shall be borne by the party providing the incorrect information, regardless of when the error is corrected.
(m) The standards set forth in this Section (l) above are based on the Parties understanding of the views expressed by the staff of the SEC as of the date of this Agreement. In the event the views of the SEC staff are later modified or superseded by SEC or judicial interpretation, the parties shall amend the foregoing provisions of this Agreement to comport with the appropriate applicable standards, on terms mutually satisfactory to all Parties.
(n) Each party shall notify the others of any errors or omissions in any information, including any NAV and distribution information set forth above, and interruptions in or delay or unavailability of, the means of transmittal of any such information as promptly as possible. All parties to the Agreement agree to maintain reasonable errors and omissions insurance coverage commensurate with each party's respective responsibilities under this Agreement.
(o) The parties hereto acknowledge that the arrangement contemplated by this Agreement is not exclusive; the Funds shares may be sold to other insurance companies (subject to Section 13(a)(iii) hereof) and the account value of the Contracts may be invested in other investment companies.
(p) The Company Parties shall not, without prior notice to the Funds adviser and Distributor (unless otherwise required by applicable law), take any action to operate the Account as a management investment company under the 1940 Act.
(q) Company Parties shall not, without prior notice to the Funds adviser and Distributor (unless otherwise required by applicable law), induce contract owners or participants to change or modify the Fund or change the Funds distributor or investment adviser.
5. Fees.
(a) The provision of Sub-TA, Shareholder and Distribution Services to Customers shall be the responsibility of the Company and Company Distributor and shall not be the responsibility of Distributor, the Registrants or the Funds.
The Company on behalf of its Separate Accounts will be recognized as the sole shareholder of Fund shares purchased under this Agreement.
(b) As compensation for the services rendered by the Company and Company Distributor pursuant to this Agreement, the Funds and the Distributor shall pay Company and Company Distributor the fees set forth in Schedule B of this Agreement.
(c) Notwithstanding Schedule B and Section 5(b), above, the Company Parties acknowledge that each Fund may, without prior notice, suspend or eliminate the payment of any compensation, including Distribution 12b-1 Fees, Shareholder Servicing Fees, and Sub-TA Fees (as defined in Schedule B) or other compensation, by amendment, sticker or supplement to the Prospectus of each Fund. The Company Parties agree that Distributor shall have no
obligation to pay any compensation to the Company Parties for the sale or servicing of Shares until Distributor receives the related compensation from the applicable Fund, and that Distributor's liability to the Company Parties for such payments will not be more than the amount of related compensation that Distributor receives from such Fund.
(d) Expenses incurred by the Company and payments received by the Company under this Agreement shall be allocated to the Company in conformity with customary insurance accounting practices.
(e) The parties intend that the provision of Sub-TA, Shareholder and Distribution Services under this Agreement shall have no impact on the surplus of the Company.
6. Expenses.
The applicable Registrant and/or Fund shall reimburse certain out-of-pocket expenses the Company incurs in connection with providing shareholder services to Contract owners or the Plans. These expenses are limited to the costs of printing and distributing updated Prospectuses, Prospectus supplements and financial reports to Contract owners or Plan Representatives or Plan Participants for which the Company provides shareholder services hereunder, and all costs incurred by the Company associated with proxies for the Fund, including proxy preparation, group authorization letters, programming for tabulation and necessary materials (including postage). Except as otherwise agreed in writing, the Company shall bear all other expenses incidental to the performance of the services described herein. Distributor shall, however, provide the Company, with such sufficient copies of relevant Prospectuses for all Plan Participants making an initial Fund purchase as well as copies of relevant Prospectuses, Prospectus supplements and periodic reports to shareholders, and other material as shall be reasonably requested by the Company to disseminate to Plan Participants who purchase shares of the Funds. Expenses incurred by the Company and payment received by the Company shall be allocated to the Company in conformity with customary insurance accounting practices.
7. Effective Date, Duration, Termination and Assignment.
(a) Effective Date and Duration of Agreement. This Agreement shall be effective as of December 31, 2015 (the Effective Date) and shall continue in effect for an initial term of one year (the Initial Term). This Agreement shall automatically renew following the Initial Term for subsequent one-year terms (Subsequent Terms) under the same terms and conditions, subject to the provisions for termination, as set forth below.
(b) This Agreement may be terminated as follows:
(i) At the option of any party upon ninety (90) days advance written notice to the other parties;
(ii) At the option of the Company Parties upon (90) days advance written notice if shares of the Funds are not available for any reason to meet the investment requirements of the Contracts;
(iii)At the option of either Company Distributor or Distributor, upon institution of formal disciplinary or investigative proceedings against the Company Distributor, Distributor or the Funds by the Financial Industry Regulatory Authority ("FINRA"), the Securities and Exchange Commission ("SEC"), or any other regulatory body with jurisdiction over the relevant party;
(iv) At the option of Distributor, if Distributor shall reasonably determine in good faith that shares of the Funds are not being offered in conformity with the terms of this Agreement; provided, however, that prompt advance written notice of election to terminate shall be furnished by the Distributor;
(v) At the option of the Company Parties by written notice to the Registrants and the Distributor with respect to any Funds if the Company reasonably believes that the Funds will fail to meet Section 817(h) diversification requirements or Subchapter M qualifications specific in Section 13 of this Agreement;
(vi) At the option of the Company Parties, with respect to the applicable Funds, upon termination of the management agreement between such Funds and their investment adviser written notice of such termination shall be promptly furnished to the Company Parties;
(vii) Upon the implementation by the Company of a substitution of Funds shares for the shares of another investment company in accordance with the terms of the applicable Contracts.
(viii) At the option of either a Registrant or the Distributor, if a Registrant or the Distributor, respectively, shall determine, in its sole judgment reasonably exercised in good faith, that the Company has suffered a material adverse change in its business or financial condition or is the subject of material adverse publicity and that material adverse change or publicity will have a material adverse impact on the Companys ability to perform its obligations under this Agreement. Each Registrant or the Distributor shall notify the Company of that determination and its intent to terminate this Agreement, and after considering the actions taken by the Company and any other changes in circumstances since the giving of such a notice, the determination of each Registrant or the Distributor shall continue to apply on the ninetieth (90th) day following the giving of that notice, which sixtieth day shall be the effective date of termination.
(ix) At the option of the Company or Company Distributor, respectively, shall determine, in its sole judgment reasonably exercised in good faith, that the Registrants and/or the Funds or the Distributor has suffered a material adverse change in its business or financial condition or is the subject of material adverse publicity and that material adverse change or publicity will have a material adverse impact on the Registrants and/or the Funds or the Distributors ability to perform its obligations under this Agreement. The Company or Company Distributor shall notify the Registrants and/or the Funds or the Distributor of that determination and its intent to terminate this Agreement, and after considering the actions taken by the Registrants and/or the Funds or the Distributor and any other changes in circumstances since the giving of such a notice, the determination of the Company or Company Distributor shall continue to apply on the ninetieth (90th) day following the giving of that notice, which sixtieth day shall be the effective date of termination.
(x) If the Fund's shares are not registered, issued or sold in conformance with federal law or such law precludes the use of Fund shares as an investment vehicle for the Contracts provided, however, that prompt notice shall be given by any party should such situation occur;
(xi) Upon requisite vote of the Customers having an interest in the Separate Accounts (or any subaccounts thereof) to substitute the shares of another investment company for the corresponding shares of the Funds or a Fund in accordance with the terms of the Contracts for which those shares had been selected or serve as the underlying investment media;
(xii) At the option of any party to the Agreement, immediately upon written notice, in the event of a determination by a majority of the Trustees of the Funds, or a majority of its disinterested Trustees, that an irreconcilable conflict, as described in Section 14 hereof, exists;
(xiii) Notwithstanding the preceding, the Distributor acknowledges that it has no automatic right to terminate the Agreement if the Company is placed in receivership or seized by its respective domiciliary state Insurance Commissioner (Commissioner) pursuant to applicable domiciliary state insurance receivership statutes. In the event the Company is placed in receivership or seized by its domiciliary state Commissioner pursuant to applicable domiciliary state insurance receivership statutes, (i) all of the rights of the Company under this Agreement will extend to the receiver or the Commissioner, as applicable, and (ii) all books and records related to the services provided by the Company will be made available to the receiver or the Commissioner, as applicable, immediately upon request thereby.
(c) All parties to this Agreement shall promptly notify the other parties to the Agreement of the institution against such party of any such formal proceedings as described in Section 7(b)(iii) hereof. The Company shall give 60 days prior written notice to the Funds of the date of any proposed vote of Contract owners or Plan Participants to replace the Funds' shares as described in Section 7(b)(ix) hereof.
(d) The Funds and the Distributor acknowledge that the Company may have the right to substitute shares of other securities for shares of the Funds under certain circumstances. The Company agrees not to exercise this right until after at least 60 days' written notice to the Funds and the Distributor. In the event that the Company exercises its right to substitute shares of other securities for shares of the Funds, the Company shall furnish, or shall cause to be furnished, to the Funds and the Distributor, or their designees, any application for an order seeking approval of the substitution or any other written material related to such substitution, including the notice of the substitution to be sent to Customers.
(e) In the event the Agreement is terminated pursuant to Sections 7(b) (iv) or (x), at the option of the Funds or the Distributor the Company agrees to use its best efforts to seek an order approving the substitution of shares of the Funds and, following receipt of the substitution order, to implement such substitution promptly and as early as reasonable practicable. In the event that the one year anniversary of the termination of the Agreement pursuant to any other provision of Section 7 is reached and the substitution of shares of the Funds has not yet been accomplished (a "redemption event"), such redemption event shall be considered as an immediate request for redemption of shares of the Funds held by the Separate Accounts received by the Investment Company as of the date of the redemption event. The Investment Company agrees to process either such redemption request in accordance with the 1940 Act and the regulations thereunder and the Investment Company's registration statement.
(f) If this Agreement terminates, the parties agree that to the extent that all or a portion of the assets of the Separate Accounts continue to be invested in the Funds or any Fund, Sections 1 through 6 and 10 through 14 will remain in effect after termination.
(g) This Agreement shall not be assigned by any party without the written consent of the other parties, provided however, that any party (subject to the terms of this section) may assign this Agreement to an entity which controls, is controlled by, or is under common control with such party by providing notice of such assignment to the other parties. Notwithstanding the preceding sentence, an assignment by any party to this Agreement of all or a portion of its rights or obligations under this Agreement to any affiliate shall be undertaken in accordance with the applicable domestic state insurance holding company laws.
8. Continuation of Agreement.
Termination as the result of any cause listed in Section 7 hereof shall not affect the Funds respective obligations to continue to maintain the Account as an investment option for Contracts then in force for which its shares serve or may serve as the underlying investment vehicle. For avoidance of doubt, if the termination is not caused by the breach of the terms of
this Agreement by the Company, Distribution 12b-1 Fees, Shareholder Servicing Fees, and Sub-TA Fees (as defined in Schedule B), will continue to be payable under the terms in Section 5 after the termination, for as long as fund assets are held through the Contracts.
9. Advertising and Related Materials.
(a) For purposes of this Section 9 and Section 11, the phrase "advertising and related materials includes, but is not limited to: (i) advertisements (such as material published, or designed for use in, a newspaper, magazine, or other periodical, radio, television, telephone or tape recording, videotape display, signs or billboards, motion pictures, or other public media; e.g., on-line networks such as the Internet or other electronic media); (ii) sales literature (i.e., any written communication distributed or made generally available to Customers or the public, including brochures, circulars, research reports, market letters, form letters, seminar texts, reprints or excerpts of any other advertisement, sales literature, or published article); (iii) educational or training materials or other communications distributed or made generally available to some or all agents or employees; (iv) shareholder reports; and (v) any other material constituting sales literature or advertising under the FINRA rules, the 1933 Act or the 1940 Act.
(b) Advertising and related materials with respect to the Funds prepared by the Company Parties or their agents for use in marketing shares of the Funds to Contract owners or Plans (except any material that simply lists the Funds names) shall be submitted to Distributor for review and approval before such material is used with the general public or any Customer. Distributor shall advise the Company in writing within ten (10) days of receipt of such materials of its approval or disapproval of such materials. No such material shall be used if a Fund objects to such use within five (5) Business Days after receipt of such material.
(c) Distributor will provide to the Company at least one complete copy of all Prospectuses, statements of additional information, annual and semiannual reports and proxy statements, other related documents, and all amendments or supplements to any of the above documents that relate to the Funds promptly after the filing of such document with the SEC or other regulatory authorities. Distributor will also provide to the Company an electronic copy of all Prospectuses, statements of additional information, annual and semiannual reports, and all amendments or supplements suitable for posting on the Company's websites at the Company's discretion.
(d) At Funds reasonable request, the Company will provide to the Fund at least one complete electronic copy of all registration statements, prospectuses, statements of additional information, reports, solicitations for voting instructions, sales literature and any other promotional materials, applications for exemptions, requests for no action letters, and all amendments to any of the above, that relate to the Contracts or each Account.
(e) Each Registrant or the Distributor shall not give any information or make any representations on behalf of the Company or concerning the Company, the Separate Account(s), or the Contracts other than the information or representations contained in a registration statement, including the prospectus or SAI for the Contracts, as the same may be amended or supplemented from time to time, or in sales literature or other promotional material approved by the Company or its designee, except with the permission of the Company.
(f) The Company Parties will not give any information or make any representations or statements concerning a Fund other than the information or representations contained in the registration statement, prospectus, or statement of additional information for Fund shares, as such documents may be amended or supplemented from time to time, or in reports or proxy statements for the Fund, or in published reports approved by the Fund or the Distributor for distribution, or in sales literature or other material provided by the Fund, its adviser or by the Distributor, or in sales literature or other material provided by the Fund, its adviser or by the Distributor, except with permission of the Distributor.
(g) At the request of any party to this Agreement, each other party will make available to the other party's independent auditors and/or representative of the appropriate regulatory agencies, all records, data and access to operating procedures that may be reasonably requested in connection with compliance and regulatory requirements related to this Agreement or any party's obligations under this Agreement.
10. Proxy Voting.
(a) Upon request from the Registrant or proxy tabulator acting as agent on behalf of the Registrant, the Company will provide beneficial ownership information to the proxy tabulator to distribute proxy materials to Contract owners, Plan Representatives or Plan Participants who own shares of the Funds. The Company shall not oppose or interfere with the solicitation of proxies for Fund shares held for such beneficial owners. If and to the extent required by law the Company shall: (i) solicit voting instructions from Contract owners or Plan Participants ; (ii) vote the fund(s) shares held in the Contract owners or Plan Participants account(s) in accordance with instructions received from Contract owners or Plan Participants ; (iii) vote fund shares held in the Contract owners or Plan Participants account(s) for which no instructions have been received in the same proportion as fund(s) shares for which instructions have been received from Contract owners or Plan Participants, so long as and to the extent that the SEC continues to interpret the 1940 Act to require pass-through voting privileges for variable contract owners. The Company reserves the right to vote Fund shares held in any Separate Account in its own right, to the extent permitted by law.
The Company reserves the right to vote shares of a Fund held in any segregated asset account, including any Separate Account, in its own right, to the extent permitted by law.
(b) The Company shall be responsible for assuring that the proxy votes for Fund shares held by its Separate Accounts are calculated as directed by each Registrant and agreed to by the Company and each Registrant. Each Registrant agrees to promptly notify the Company of any changes of interpretations or amendments of the Mixed and Shared Funding Exemptive Order.
(c) Each Registrant will comply with all provisions of the 1940 Act requiring voting by shareholders, and in particular each Registrant will either provide for annual meetings (except insofar as the SEC may interpret Section 16 of the 1940 Act not to require such meetings) or, as each Registrant currently intends, comply with Section 16(c) of the 1940 Act (each Registrant is not one of the Registrants described in Section 16(c) of that Act) as well as with Sections 16(a) and, if and when applicable, 16(b). Further, each Registrant will act in accordance with the SEC's interpretation of the requirements of Section 16(a) with respect to periodic elections of directors or trustees and with whatever rules the SEC may promulgate with respect thereto.
11. Indemnification.
(a) The Company Parties, in each case solely to the extent relating to such partys responsibilities hereunder, agree to indemnify and hold harmless the Registrants, the Funds, the Distributor and each of their directors, officers, employees, agents and each person, if any, who controls the Funds or their investment adviser within the meaning of the Securities Act of 1933 ("1933 Act") against any losses, claims, damages or liabilities to which the Distributor, the Registrants and/or the Funds or any such director, officer, employee, agent, or controlling person may become subject, insofar as such losses, claims, damages, or liabilities (or actions in respect thereof) (i) arise out of, or are based upon, the provision of Administrative, Shareholder or Distribution services by the Company and/or Company Distributor under this Agreement, (ii) result from a breach of a material provision of this Agreement by the Company or Company Distributor (including a breach of any representation or warranty), (iii) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement or prospectus (which shall include an offering memorandum) for the Contracts issued by the Company or sales literature for such Contracts (or any amendment or supplement to any of the foregoing), or arise out of or are based upon the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, provided that the agreement to indemnify shall not apply as to the Company if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Company by or on behalf of the Funds for use in the registration statement or prospectus for the Contracts issued by the Company or sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of such Contracts or Fund shares, (iv) arise out of or as a result of any statement or representations (other than statements or representations contained in the registration statement, Prospectus or sales literature of the Funds not supplied by the Company or persons under its control) or wrongful conduct of the Company or any of its affiliates, employees or agents with respect to the sale or distribution of the Contracts issued by the Company or the Funds shares, or (v) arise out of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, Prospectus or sales literature of any Fund or any amendment thereof or supplement thereto or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading if such a statement or omission was made in reliance upon information furnished to the Funds by or on behalf of the Company Parties.
The Company Parties will reimburse any legal or other expenses reasonably incurred by the Registrants, the Funds and/or Distributor or any such director, officer, employee, agent, or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company Parties will not be liable for indemnification hereunder to the extent that any such loss, claim, damage, liability or action arises out of or is based upon the gross negligence or willful misconduct of the Registrants, the Funds or Distributor or any such director, officer, employee, agent or any controlling person herein defined in performing their obligations under this Agreement.
(b) The Funds and the Distributor, in each case solely to the extent relating to such partys responsibilities hereunder, agree to indemnify and hold harmless the Company and Company Distributor and each of their directors, officers, employees, agents and each person, if any, who controls the Company within the meaning of the 1933 Act against any losses, claims, damages or liabilities to which the Company or Company Distributor, and each of their directors, officers, employees, agents or controlling persons may become subject, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon any untrue statement or alleged untrue statement of any material fact contained in the registration statement, Prospectus or sales literature of the Funds (or any amendment or supplement to any of the foregoing) or arise out of, or are based upon, the omission or the alleged omission to state a material fact required to be stated therein or that is necessary to make the statements therein not misleading provided that this agreement to indemnify shall not apply to Distributor if such statement or omission or such alleged statement or omission was made in reliance upon and in conformity with information furnished to the Distributor or the Registrant or
the Funds or their designee of any by or on behalf of the Company for use in the registration statement or Prospectus for the Funds or in sales literature (or any amendment or supplement) or otherwise for use in the registration statement or Prospectus for the Funds or in sales literature (or any amendment or supplement) or otherwise for use in connection with the sale of the Contracts or the Funds' shares (ii) arise out of or as a result of any statement or representations (other than any statement or representations contained in the registration statement, prospectus or sales literature for the Contracts not supplied by Distributor or any employees or agents thereof) or wrongful conduct of any Registrant, Funds or the Distributor, or their affiliates, employees or agents with respect to the sale or distribution of the Contracts issued by the Company or the Funds' shares, (iii) arise out of any untrue statement or alleged untrue statement of a material fact contained in a registration statement, prospectus or sales literature covering the Contracts issued by the Company, or any amendment thereof or supplement thereto, or the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statement or statements therein not misleading, if such statement or omission was made in reliance upon information furnished to the Company by or on behalf of the Funds, or (v) result from a breach of a material provision of this Agreement. Distributor, or its agent will reimburse any legal or other expenses reasonably incurred by the Company, or any such director, officer, employee, agent, or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that Distributor or its agent will not be liable for indemnification hereunder to the extent that any such loss, claim, damage or liability arises out of, or is based upon, the gross negligence or willful misconduct of the Company or Company Distributor or their respective directors, officers, employees, agents, or any controlling person herein defined in the performance of their obligations under this Agreement.
The Registrants, the Funds or the Distributor will reimburse any legal or other expenses reasonably incurred by the Company Parties or any such director, officer, employee, agent, or controlling person in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Registrants, the Funds or Distributor will not be liable for indemnification hereunder to the extent that any such loss, claim, damage, liability or action arises out of or is based upon the gross negligence or willful misconduct of the Company Parties or any such director, officer, employee, agent or any controlling person herein defined in performing their obligations under this Agreement.
(c) Promptly after receipt by an indemnified party hereunder of notice of the commencement of action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party hereunder, notify the indemnifying party of the commencement thereof, but the omission so to notify the indemnifying party will not relieve it from any liability that it may have to any indemnified party otherwise than under this Section 11. In case any such action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent that it may wish to, assume the defense thereof, with counsel satisfactory to such indemnified party, and after notice from the indemnifying party to such indemnified party of its election to assume the defense thereof, the indemnifying party will not be liable to such indemnified party under this Section 11 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof other than reasonable costs of investigation.
This Section 11 shall survive after termination of this agreement.
12. Representations and Warranties.
(a) Representations of the Company. The Company represents and warrants:
(i) that it (A) is a life insurance company organized under the laws of the State of Colorado, (B) is in good standing in that jurisdiction, (C) is in material compliance with all applicable federal and state insurance laws, (D) is duly licensed and authorized to conduct business in every jurisdiction where such license or authorization is required, and will maintain such license or authorization in effect at all times during the
term of this Agreement, and (E) has full authority to enter into this Agreement and carry out its obligations pursuant to its terms;
(ii) that it is authorized under the Contracts to (A) provide administrative, recordkeeping and shareholder services to the Contracts, and (B) facilitate transactions in the Funds through the Accounts; and
(iii) The Company acknowledges that, pursuant to Form 24f-2, the Funds are not required to pay fees to the SEC for registration of their shares under the 1933 Act with respect to shares issued to Separate Accounts that are unit investment trusts that offer interests that are registered under the 1933 Act and on which a registration fee has been or will be paid to the SEC ("Registered Separate Accounts"). The Company agrees to provide the Funds each year within 60 days of the end of the Funds fiscal year, or when reasonably requested by the Funds, information as to the number of shares purchased by Registered Separate Accounts and Separate Accounts the interests of which are not registered under the 1933 Act. The Company acknowledges that the Funds intend to rely on the information so provided and represents and warrants that such information shall be accurate.
(b) Representations of Company Distributor. Company Distributor represents and warrants:
(i) that it (A) is a member in good standing of the FINRA, (B) is registered as a broker-dealer with the SEC, and (C) will continue to remain in good standing and be so registered during the term of this Agreement;
(ii) that it (A) is a limited liability company duly organized under the laws of the State of Colorado, (B) is in good standing in that jurisdiction, (C) is in material compliance with all applicable federal, state and securities laws, (D) is duly registered and authorized to conduct business in every jurisdiction where such registration or authorization is required, and will maintain such registration or authorization in effect at all times during the term of this Agreement, and (E) has full authority to enter into this Agreement and carry out its obligations pursuant to the terms of this Agreement;
(iii) Company Distributor acknowledges that, pursuant to this Agreement, Fund shares will not be sold to any Plan outside of the Separate Account context; and
(iv) that it will not, without the written consent of the Distributor, make representations concerning shares of the Funds except those contained in the then-current Prospectus and in the current printed sales literature approved by either the Fund or Distributor;
(c) Representations of the Registrants. Registrants represent and warrant:
(i) that the Funds (A) are duly organized under the laws of each State in the manner indicated on Schedule A, (B) are in good standing in such jurisdictions, (C) are in material compliance with all applicable federal, state and securities laws, and (D) are duly licensed and authorized to conduct business in every jurisdiction where such license or authorization is required;
(ii) that the shares of the Funds are (A) registered under the 1933 Act, duly authorized for issuance and sold in compliance with all applicable federal, state, and securities laws, (B) that the Funds amend their registration statements under the 1933 Act and the 1940 Act from time to time as required or in order to effect the continuous offering of their shares, and (C) that the Funds have registered and qualified their shares for sale in accordance with the laws of each jurisdiction as required by Applicable law;
(iii) that it believes in good faith that the Registrants and each of their respective Funds are currently qualified as regulated investment companies under Subchapter M of the Tax Code, and will make best efforts to maintain each Funds such qualification, and that they will notify the Company immediately upon having a reasonable basis for believing that any of the Funds have ceased to so qualify or that any might not qualify in the future;
(d) Representations of the Distributor. Distributor represents and warrants:
(i) that Distributor (A) is a member in good standing of the FINRA, (B) is registered as a broker-dealer with the SEC, and (C) will continue to remain in good standing and be so registered during the term of this Agreement; and
(ii) that (A) Distributor is a limited liability corporation duly organized under the laws of the Delaware; (B) Distributor is in good standing in that jurisdiction, (C) Distributor is in material compliance with all applicable federal, state, and securities laws, (D) Distributor is duly registered and authorized in every jurisdiction where such license or registration is required, and will maintain such registration or authorization in effect at all times during the term of this Agreement, and (E) Distributor has full authority to enter into this Agreement and carry out its obligations pursuant to the terms of this Agreement.
13. Further Representations and Warranties Pertaining to 817(h) and Subchapter M of the Tax Code.
(a) The Registrant, the Funds and the Distributor represent and warrant that: (i) each Registrant will at all times sell its shares and invest its assets in such a manner as to ensure that the Contracts will be treated as annuity contracts under the Tax Code, and the regulations issued thereunder; (ii) without limiting the scope of the foregoing, each Registrant and each Fund thereof will at all times comply with Section 817(h) of the Tax Code and Treasury Regulation (S)1.817-5, as amended from time to time, and any Treasury interpretations thereof, relating to the diversification requirements for variable annuity contracts and any amendments or other modifications or successor provisions to such Section or Regulations; (iii) shares of the Fund(s) will be sold only to Participating Insurance Companies and their Separate Accounts and to Qualified Plans; (iv) no shares of any Fund of each Registrant will be sold to the general public; (v) each Registrant and each Fund is currently qualified as a Regulated Investment Company under Subchapter M of the Tax Code, and that each Fund will maintain such qualification (under Subchapter M or any successor or similar provisions) as long as this Agreement is in effect; (vi) they will notify the Company immediately upon having a reasonable basis for believing that each Registrant or any Fund has ceased to comply with the aforesaid Section 817(h) diversification or Subchapter M qualification requirements or might not so comply in the future; and (vii) if a Fund or Registrant ceases to comply with Section 817(h) diversification, or Subchapter M qualification, said Registrant and/or Fund will take all reasonable steps to adequately achieve compliance to said qualifications within the grace periods, if applicable, afforded under said regulations.
(b) The Company agrees that if the Internal Revenue Service ("IRS") asserts in writing in connection with any governmental audit or review of the Company or, to the Companys knowledge, of any Customer that any Fund has failed to comply with the diversification requirements of Section 817(h) of the Tax Code or the Company otherwise becomes aware of any facts that could give rise to any claim against each Registrant or Distributor as a result of such a failure or alleged failure that: (i) the Company shall promptly notify each Registrant and the Distributor of such assertion or potential claim; (ii) the Company shall consult with each Registrant and the Distributor as to how to minimize any liability that may arise as a result of such failure or alleged failure; (iii) the Company shall use its best efforts to minimize any liability of each Registrant and the Distributor resulting from such failure, including, without limitation, demonstrating, pursuant to Treasury Regulations, Section 1.817-5(a)(2), to the commissioner of the IRS that such failure was inadvertent; (iv) any written materials to be submitted by the Company to the IRS, any Customer or any other claimant in connection with any of the
foregoing proceedings or contests (including, without limitation, any such materials to be submitted to the IRS pursuant to Treasury Regulations, Section 1.817-5(a)(2)) shall be provided by the Company to each Registrant, Fund and/or Distributor (together with any supporting information or analysis) within at least two (2) business days prior to submission; and (v) the Company shall provide each Registrant and the Distributor with such cooperation as each Registrant and the Distributor shall reasonably request (including, without limitation, by permitting each Registrant and the Distributor to review the relevant books and records of the Company) in order to facilitate review by each Registrant and Distributor of any written submissions provided to it or its assessment of the validity or amount of any claim against it arising from such failure or alleged failure.
14. Governing Law.
(a) This Agreement and all the rights and obligations of the parties shall be governed by and construed under the laws of the State of New York to the extent such law is not superseded by federal law without giving effect to the principles of conflicts of laws and the provisions shall be continuous.
(b) This Agreement shall be subject to the provisions of FINRA, the 1933 Act, the Securities and Exchange Act of 1934 and 1940 Act, and the rules and regulations and rulings thereunder, including such exemptions from those statutes, rules and regulations as the SEC may grant (including, but not limited to, the Mixed and Shared Funding Exemptive Order), and the terms hereof shall be interpreted and construed in accordance therewith.
15. Potential Conflicts.
(a) During such time as the Funds engage in Mixed Funding or Shared Funding, the parties hereto shall comply with the conditions in this Section 14.
(b) The Funds Board of Trustees shall monitor the Funds for the existence of any material irreconcilable conflict (i) between the interests of owners of variable annuity contracts and variable life insurance policies, and (ii) between the interests of owners of variable annuity contracts and variable life insurance policies issued by different Participating Life Insurance Companies that invest in the Funds. A material irreconcilable conflict may arise for a variety of reasons including: (i) an action by any state insurance regulatory authority; (ii) a change in applicable federal or state insurance, tax, or securities laws or regulations, or a public ruling, private letter ruling, no-action or interpretive letter, or any similar action by insurance, tax, or securities regulatory authorities; (iii) an administrative or judicial decision in any relevant proceeding; (iv) the manner in which the investments of any Fund are being managed; (v) a difference in voting instructions given by variable annuity and variable life insurance contract owners; or (vi) a decision by a Participating Insurance Company to disregard the voting instructions of owners of variable annuity contracts and variable life insurance policies.
(c) The Company agrees that it shall report any potential or existing conflicts of which it is aware to the Funds Board of Trustees. The Company will be responsible for assisting the Board of Trustees in carrying out its responsibilities under the Mixed and Shared Funding Exemptive Order, or, if the Funds are engaged in Mixed Funding or Shared Funding in reliance on Rule 6e-2, 6e-3(T), or any other regulation under the 1940 Act, the Company will be responsible for assisting the Board of Trustees in carrying out its responsibilities under such regulation, by providing the Board with all information reasonably necessary for the Board to consider any issues raised. This includes, but is not limited to, any obligation by the Company to inform the Board whenever Contract owner or Plan Participant voting instructions are disregarded. The Company shall carry out its responsibilities under this Section 14(c) with a view only to the interests of the Contract owners or Plan Participants.
(d) The Company agrees that in the event that it is determined by a majority of the Board of Trustees or a majority of the Funds disinterested Trustees that a material irreconcilable conflict exists, the Company shall, at its expense and to the extent reasonably practicable (as determined by a majority of the disinterested Trustees of the Board), take whatever steps are necessary to remedy or eliminate the irreconcilable material conflict, up to and including: (i) withdrawing the assets allocable to some or all of the Separate Accounts from the Funds or any Fund and reinvesting such assets in a different investment vehicle, including another Fund of the investment company, or submitting the question as to whether such segregation should be implemented to a vote of all affected Contract owners or Plan Participants and, as appropriate, segregating the assets of any appropriate group (i.e., annuity contract owners or life insurance contract owners of contracts issued by one or more Participating Insurance Companies), that votes in favor of such segregation, or offering to the affected Contract owners or Plan Participants the option of making such a change; and (ii) establishing a new registered management investment company or managed separate account. If a material irreconcilable conflict arises because of the Companys decision to disregard Contract owners or Plan Participants voting instructions and that decision represents a minority position or would preclude a majority vote, the Company shall be required, at the Funds election, to withdraw the Separate Accounts' investment in the Funds, provided, however, that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested Trustees, and no charge or penalty will be imposed as a result of such withdrawal. These responsibilities shall be carried out with a view only to the interests of the Contract owners or Plan Participants. A majority of the disinterested Trustees of the Funds shall determine whether or not any proposed action adequately remedies any material irreconcilable conflict, but in no event will the Registrants or any of the Funds investment advisers or the Distributor be required to establish a new funding medium for any Contract. The Company shall not be required by this Section 14(d) to establish a new funding medium for any Contract if any offer to do so has been declined by vote of a majority of Contract owners or Plan Participants materially adversely affected by the material irreconcilable conflict.
(e) If a material irreconcilable conflict arises because a particular state insurance regulators decision applicable to the Company conflicts with the majority of other state regulators, then the Company will withdraw the Separate Account(s) investment in each Fund and terminate this Agreement within six months after the Board informs the Company in writing that it has determined that such decision has created an irreconcilable material conflict; provided, however, that such withdrawal and termination shall be limited to the extent required by the foregoing material irreconcilable conflict as determined by a majority of the disinterested members of the Board. Until the end of the foregoing six month period, each Fund shall continue to accept and implement orders by the Company for the purchase (and redemption) of shares of each Trust.
(f) The Company at least annually, shall submit to the Funds Board of Trustees such reports, materials, or data as the Board reasonably may request so that the Trustees may fully carry out the obligations imposed upon the Board by the conditions contained in the application for the Mixed and Shared Funding Exemptive Order and said reports, materials, and data shall be submitted more frequently if deemed appropriate by the Board.
(g) All reports of potential or existing conflicts received by the Funds Board of Trustees, and all Board action with regard to determining the existence of a conflict, notifying Participating Insurance Companies of a conflict, and determining whether any proposed action adequately remedies a conflict, shall be properly recorded in the minutes of the Board of Trustees or other appropriate records, and such minutes or other records shall be made available to the SEC upon request.
(h) The Board of Trustees shall promptly notify the Company in writing of its determination of the existence of an irreconcilable material conflict and its implications.
(i) The Funds and the Company agree that if and to the extent Rule 6e-2 or Rule 6e-3(T) under the 1940 Act is amended or if Rule 6e-3 is adopted in final form, to the extent applicable, the Funds and the Company shall each take such steps as may be necessary to comply with the Rule as amended or adopted in final form. If, in the future, the Mixed and Shared Funding Exemptive Order should no longer be necessary under Applicable law, then this Section 14(h) shall continue in effect, and the remainder of Section 14 shall no longer apply.
16. Miscellaneous.
(a) Amendments. Except as provided in this paragraph 16(a), this Agreement may be amended only by a writing signed by all parties, provided however, that any such amendment is undertaken in accordance with the applicable domestic state insurance holding company laws.
(b) Anti-Money Laundering. Distributor has established and will maintain programs, policies and procedures as required by federal, state or local law to detect and prevent money laundering. Company Parties agree to comply with the applicable provisions of 31 U.S.C. Section 5318(h), also known as Section 352 of the USA PATRIOT
Act, and all applicable implementing regulations promulgated by either the Secretary of the United States Department of the Treasury or the SEC. Such compliance shall include but not be limited to the development and implementation of an anti-money laundering program which includes: (i) Know Your Customer identification and verification procedures in compliance with implementing regulations promulgated pursuant to Section 326 of the USA PATRIOT Act; (ii) Financial transaction monitoring/surveillance procedures to determine whether any Customer is engaging in suspicious activities that should be reported to the United States Department of the Treasurys Financial Crimes Enforcement Network; and (iii) A protocol to facilitate appropriate federal regulatory examiners obtaining information and records regarding Selling Firms anti-money laundering program and to conduct inspections for purposes of the program. Company Parties agree not to offer or sell interests in any separate account that invests in any Fund to: (i) any investor listed on the United States Department of the Treasurys Office of Foreign Assets Control (OFAC) list of prohibited persons, entities, and countries, or (ii) a foreign shell bank. A foreign shell bank is defined as a bank that (a) does not maintain a physical presence in any jurisdiction; and (b) is not (i) an affiliate of a bank that maintains a physical presence, and (ii) subject to regulation by the governmental authority that regulates the non-shell bank affiliate. As of the date this Agreement is made and entered into, the Company does not believe, nor have any current reason to believe, and will, as allowable under state and federal law, immediately notify the Distributor, the Registrants and the Funds if the Company comes to have any reason to believe that any of the Companys Customers that invest within Fund(s) shares through the Company are engaged in money-laundering activities or are associated with any terrorist and/or other individuals, entities or organizations sanctioned by the United States or any other jurisdictions in which the Company does business, or appear on any lists of prohibited persons, entities and/or jurisdictions maintained and administered by OFAC. Each party shall cooperate with the others to the extent required by law to facilitate implementation of each other's anti-money laundering (AML) program.
(c) Privacy. Each of the parties to this Agreement has adopted and implemented procedures to safeguard Customer information and records that are reasonably designed to: (i) ensure the security and confidentiality of Customer records and information; (ii) protect against any anticipated threats or hazards to the security or integrity of Customer records and information; (iii) protect against unauthorized access to or use of Customer records or information that could result in substantial harm or inconvenience to any Customer; (iv) protect against unauthorized disclosure of non-public information to unaffiliated third parties; and (v) otherwise ensure compliance with the Gramm-Leach-Bliley Act and SEC Regulation S-P.
(d) Restrictions on "Excessive Trading." The Funds have adopted policies designed to prevent frequent purchases and redemptions of any Fund shares in quantities great enough to disrupt orderly management of the corresponding Funds investment portfolio. The Company has adopted their own excessive trading policy,
which is attached as Exhibit II (the Policy). The Company does not monitor trading in fund shares on behalf of, or in accordance with disclosed policies of, any fund groups; however, the Company monitors individual Contract owner or Plan Participant trading in accordance with its Policy.
The Company will use its best efforts, and shall reasonably cooperate with the Distributor and the Funds, and will execute any instructions from the Distributor or the Funds to restrict or prohibit further purchases or exchanges of Fund shares by an individual variable Contract owner or Plan Participant who has been identified by the Distributor or the Funds as having engaged in transactions in Fund shares that violate market timing policies established by the Funds. The parties shall use their best efforts, and shall reasonably cooperate with each other to prevent future market timing and frequent trading. Additionally, the parties entered into, or will enter into, a separate shareholder information agreement, incorporating the terms of the Policy. The Company agrees to provide to the Funds certain shareholder identity and transaction information upon the Funds request as provided by the shareholder information agreement executed by both parties.
(e) Provision of NAVs. The Distributor shall use commercially reasonable efforts to provide the Company Distributor with timely NAVs. The parties acknowledge that certain events, including, but not limited to, fair valuation, computer system failures, and natural catastrophes, may delay the delivery of or require revision to the NAVs.
(f) Damages. The parties agree that, notwithstanding any other provision in this agreement, no party shall be liable to another party for any indirect or consequential damages in connection with this agreement, even if the party who is liable has been informed in advance of the possibility of such damages.
(g) Force Majeure. In the event any party is unable to perform its obligations or duties under the terms of this Agreement because of acts of God, strikes, riots, acts of war, equipment failures, or power or other utility failures or damage or other cause reasonably beyond its control, such party will not be liable for any and all losses, damages, costs, charges, counsel fees, payments, expenses or liability to any other party resulting from such failure to perform its obligations or duties under this Agreement or otherwise from such causes. In any such event, the relevant party will be excused from any further performance and observance of the obligations so affected (and from any related indemnity obligations under this Agreement) for as long as such circumstances prevail provided each party uses commercially reasonable efforts to recommence performance or observance as soon as practicable.
(h) Notices. All notices and other communications hereunder shall be given or made in writing and shall be delivered personally, or sent by facsimile, express delivery or registered or certified mail, postage prepaid, return receipt requested, to the party or parties to whom they are directed at the following address, or at such other addresses as may be designated by notice from such party to all other parties.
To the Company:
Security Life of Denver Insurance Company
8055 East Tufts Avenue, Suite 650
Denver, CO 80237
If to the Company Distributor:
Voya America Equities, Inc.
One Orange Way
Windsor, CT 06095
If to the Distributor:
Voya Investments Distributor, LLC
7337 E. Doubletree Ranch Road
Suite 100
Scottsdale, AZ 85258
Attn: Robert Terris
If to the Registrants or Funds:
Voya funds
7337 E. Doubletree Ranch Road
Suite 100
Scottsdale, AZ 85258
Attn: Legal Department
Any notice, demand or other communication given in a manner prescribed in this Subsection (d) shall be deemed to have been delivered on receipt.
(i) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective permitted successors and assigns.
(j) Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one agreement, and any party hereto may execute this Agreement by signing any such counterpart.
(k) Severability. In case anyone or more of the provisions contained in this Agreement should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
(l) Redemption Fees. The parties agree that transactions in the Funds pursuant to the terms of this Agreement are not subject to any redemption fees that may otherwise be required by the Funds; provided however that upon Distributor's written request, the Company will implement such redemptions fees in a time frame and manner mutually acceptable to all parties.
(m) Records. The parties agree that all documents, reports, records, books, files, accounting statements, invoices for services and other materials developed or maintained by the Company under or related to this Agreement shall be the sole property of the Company. The Company shall keep and maintain or cause to be kept and maintained full and complete documentation and records related to the services provided hereunder, including the accounting necessary to support charges for services. The Company shall maintain custody of said documentation and records and shall make them available to the other parties upon reasonable request. The Company and its applicable domestic state insurance department shall have access to the Companys books and records pertaining to the services provided by the Company and the charges billed by or to the Company pursuant to the provisions of this Agreement.
(n) Company Assets. The parties agree and acknowledge that all funds and invested assets of the Company are the exclusive property of the Company, held for the benefit of the Company and are subject to the control of the Company.
(o) Entire Agreement. Except as described below, this Agreement, as amended from time to time as described herein, supersedes any prior agreement, draft or agreement or proposal with respect to the subject matter hereof and represents the entire agreement between the parties related to the subject matter described herein.
Notwithstanding the preceding, this Agreement does not supersede or encompass other profit sharing agreements that do not constitute management or service agreements entered into between the parties. Furthermore, this Agreement does not supersede the Rule 22c-2 agreement dated effective October 16, 2007. Such agreements are not incorporated by reference into this Agreement.
(p) Arbitration. Any controversy, dispute or claim between the Parties arising out of or relating to this Agreement shall be resolved by binding and final arbitration before three neutral arbitrators selected from the securities industry. The arbitration shall be conducted in accordance with the Federal Arbitration Act (Title 9 of the U.S.
Code) and administered by the American Arbitration Association (AAA) in accordance with AAAs Commercial Arbitration Rules then in affect at the time arbitration is demanded. One arbitrator shall be named by each party within 30 days of the date on which arbitration is demanded and the third shall be appointed by the two party-appointed arbitrators within 30 days of the date on which the last party-appointed arbitrator is named, or, if they should fail to agree on the third arbitrator, by AAA. The arbitration proceeding shall be held in New York City. Judgment on the award of the arbitrators may be entered by any court having jurisdiction. The proceedings shall be confidential, except as may be necessary to enforce the award. Each Party shall be responsible for its own expenses.
IN WITNESS WHEREOF, the undersigned have executed this Agreement by their duly authorized officers as of the date first written above.
SECURITY LIFE OF DENVER INSURANCE COMPANY By:_____________________________________ Name:___________________________________ Title:____________________________________ Date:____________________________________ VOYA AMERICA EQUITIES, INC. By:_____________________________________ Name:___________________________________ Title:____________________________________ Date:____________________________________ |
VOYA INVESTMENTS DISTRIBUTOR, LLC By:____________________________________ Name:__________________________________ Title:___________________________________ Date:___________________________________ ON BEHALF OF THE REGISTRANTS By:____________________________________ Name:__________________________________ Title:___________________________________ Date:___________________________________ |
Schedule A
Current Non-Retail, Open-End Registered Investment Companies (Registrants)
Voya Balanced Portfolio
Voya Government Money Market Portfolio
Voya Intermediate Bond Portfolio
Voya Investors Trust
Voya Partners, Inc.
Voya Strategic Allocation Portfolios, Inc.
Voya Variable Funds
Voya Variable Insurance Trust
Voya Variable Portfolios, Inc.
Voya Variable Products Trust
Schedule B
Funds and Fees
Funds: Except as otherwise provided for in this Agreement, this Agreement shall apply to all of the classes of all non-retail, insurance dedicated funds distributed by Distributor that, in accordance with their respective registration statements, are available to offer shares of one or more of its series to separate accounts of insurance companies that fund such Plans through a Contract consistent with the Mixed and Shared Funding Exemptive Order, whether such funds or classes are currently established or are established hereafter, and whether such shares are currently outstanding or being offered or are offered and sold in the future (each a Fund and collectively, the Funds and each a Class and collectively the Classes, as applicable). For clarity, Class R6 shares of the Funds are only available to the Company so long as the Company neither receives nor requests any type of compensation (including servicing, administrative, and revenue sharing payments) from the Funds, the Distributor or an affiliate of such entities with respect to the Class R6 Shares. Class A and C shares of the Funds are also not available for purchase under this Agreement.
Except as set forth below, and subject to obtaining any required regulatory approvals, the Funds and the Distributor will pay no fee or compensation to Company or Company Distributor under this Agreement.
1. Distribution 12b-1 Fee:
(a) Rate and Calculation: Subject to the qualifications below, as compensation for the Distribution Services rendered herein, Distributor will pay Company or Company Distributor a quarterly 12b-1 distribution fee at the rate set forth in each applicable Funds Prospectus and related Rule 12b-1 plan established pursuant to Rule 12b-1 under the 1940 Act (Rule 12b-1 Plan) (the Distribution 12b-1 Fee). To the extent Company receives a Distribution 12b-1 Fee, it will pass the entire amount to the Company Distributor. Company Parties acknowledge that any Distribution 12b-1 Fee compensation paid to it will only derive from applicable amounts paid to the Distributor from the applicable Fund. Company Parties also acknowledge and agree that the Distributor shall not be responsible for the payment of any such fee unless and until the Distributor has received such fee from the applicable Fund, and the Company Parties agree to waive payment of such fee unless and until the Distributor has received payment from the applicable Fund.
(b) Payment: Distributor will pay Distribution 12b-1 Fees within 30 days of the end of each calendar quarter and shall pay any amounts due for Distribution and Shareholder Services provided up to the termination date, if any, of this Agreement, except for the provision set forth in Section 8 of this Agreement.
2. Shareholder Servicing Fee:
(a) The Shareholder Servicing Fee (as defined below) provided pursuant to this Agreement is for the Shareholder Services described in this Agreement and is not for or conditioned upon the performance of marketing or other distribution-related activities on behalf of the Funds. Subject to the qualifications below, as compensation for the Shareholder Services rendered herein, Distributor will pay Company or Company Distributor a quarterly shareholder servicing fee at the rate set forth in each applicable Funds Prospectus and related shareholder servicing plan (whether or not adopted pursuant to Rule 12b-1) (the Shareholder Servicing Fee). Company Parties acknowledge that any Shareholder Servicing Fee compensation paid to it will only derive from applicable amounts paid to the Distributor from the applicable Fund. Company Parties also acknowledge and agree that the Distributor shall not be responsible for the payment of any such fee unless and until the Distributor has received such fee from the applicable Fund, and the Company Parties agree to waive payment of such fee unless and until the Distributor has received payment from the applicable Fund.
(b) Payment: Distributor will pay shareholder servicing fees within 30 days of the end of each calendar quarter and shall pay any amounts due for Distribution and Shareholder Services provided up to the termination date, if any, of this Agreement, except for the provision set forth in Section 8 of this Agreement.
3. Sub-TA Fee: Company is not compensated for Sub-TA Fees pursuant to this Agreement.
EXHIBIT I
Procedures for Pricing and Order/Settlement Through National Securities Clearing Corporation's Mutual Fund Profile System and Mutual Fund Settlement, Entry and Registration Verification System
1. As provided in Section 4 of the Fund Participation Agreement, the parties hereby agree to provide pricing information, execute orders and wire payments for purchases and redemptions of Fund shares through National Securities Clearing Corporation ("NSCC") and its subsidiary systems as follows:
(a) Distributor or the Funds will furnish to Company Distributor or its affiliate through NSCC's Mutual Fund Profile System ("MFPS") (1) the most current NAV information for each Fund, (2) a schedule of anticipated dividend and distribution payment dates for each Fund, which is subject to change without prior notice, ordinary income and capital gain dividend rates on the Fund's ex-date, and (3) in the case of fixed income funds that declare daily dividends, the daily accrual or the interest rate factor. All such information shall be furnished to Company Distributor or its affiliate by 7:00 p.m., Eastern Time on each business day that the Fund is open for business (each a Business Day).
Changes in pricing information will be communicated to both NSCC and Company Distributor or its affiliate. If Distributor is unable to provide the Company such information by 7:00 p.m., East Coast time, Distributor will communicate by phone and/or e-mail with the Company, as soon as reasonably practicable upon learning of such inability, regarding the estimated time such data will be available and transmitted. In such event, Distributor will continue to communicate by phone and/or e-mail with the Company until it has verified that the data is received by the Company.
(b) Upon receipt of Fund purchase, exchange and redemption instructions for acceptance as of the time at which a Fund's NAV is calculated as specified in such Fund's prospectus ("Close of Trading") on each Business Day ("Instructions"), and upon its determination that there are good funds with respect to Instructions involving the purchase of Shares, Company Distributor or its affiliate will calculate the net purchase or redemption order for each Fund. Orders for net purchases or net redemptions derived from Instructions received by the Company Distributor or its affiliate prior to the Close of Trading on any given Business Day will be sent to the Defined Contribution Interface of NSCC's Mutual Fund Settlement, Entry and Registration Verification System ("Fund/SERV") by 5:00 a.m. Eastern Time on the next Business Day. Subject to Company Distributor or its affiliate's compliance with the foregoing, Company Distributor or its affiliate will be considered the agent of the Distributor and the Funds, and the Business Day on which Instructions are received by the Company Distributor or its affiliate in proper form prior to the Close of Trading will be the date as of which shares of the Funds are deemed purchased, exchanged or redeemed pursuant to such Instructions. Instructions received in proper form by Company Distributor or its affiliate after the Close of Trading on any given Business Day will be treated as if received on the next following Business Day. Dividends and capital gains distributions will be automatically reinvested at NAV in accordance with the Fund's then current prospectuses. The Company Distributor has, and will maintain at all times during the term of this Agreement, appropriate internal controls for the segregation of purchases and redemption orders received before the Close of Business from purchase and redemption orders received after the Close of Business.
(c) Company Distributor or its affiliate will wire payment for net purchase orders by the Fund's NSCC Firm Number, in immediately available funds, to an NSCC settling bank account designated by the Company Distributor or its affiliate no later than 5:00 p.m. Eastern time on the same Business Day such purchase orders are communicated to NSCC. For purchases of shares of daily dividend accrual funds, those shares will not begin to accrue dividends until the day the payment for those shares is received.
(d) NSCC will wire payment for net redemption orders by Fund, in immediately available funds, to an NSCC settling bank account designed by the Company Distributor or its affiliate, by 5:00 p.m. Eastern Time on the Business Day such redemption orders are communicated to NSCC, except as provided in a Funds prospectus and statement of additional information.
(e) With respect to (c) and (d) above, if Distributor does not send a confirmation of Company Distributor or its affiliate's purchase or redemption order to NSCC by the applicable deadline to be included in that Business Day's payment cycle, payment for such purchases or redemptions will be made the following Business Day.
(f) If on any day Company Distributor or its affiliate or Distributor is unable to meet the NSCC deadline for the transmission of purchase or redemption orders, it may at its option transmit such orders and make such payments for purchases and redemptions directly to Distributor or Company Distributor or its affiliate, as applicable, as is otherwise provided in Section 4 of the Agreement.
(g) These procedures are subject to any additional terms in each Fund's prospectus and the requirements of Applicable law. The Funds reserve the right, at their discretion and without notice, to suspend the sale of shares or withdraw the sale of shares of any Fund.
2. Company Distributor or its affiliate, Distributor and clearing agents (if applicable) are each required to have entered into membership agreements with NSCC and met all requirements to participate in the MFPS and Fund/SERV systems before these procedures may be utilized. Each party will be bound by the terms of their membership agreement with NSCC and will perform any and all duties, functions, procedures and responsibilities assigned to it and as otherwise established by NSCC applicable to the MFPS and Fund/SERV system and the Networking Matrix Level utilized.
3. Except as modified hereby, all other terms and conditions of the Agreement shall remain in full force and effect. Unless otherwise indicated herein, the terms defined in the Agreement shall have the same meaning as in this Exhibit.
EXHIBIT II
Voya FinancialTM “Excessive Trading” Policy
The Voya FinancialTM family of companies (VoyaTM), as providers of multi-fund variable insurance and retirement products, has adopted this Excessive Trading Policy to respond to the demands of the various fund families which make their funds available through our variable insurance and retirement products to restrict excessive fund trading activity and to ensure compliance with Section 22c-2 of the Investment Company Act of 1940, as amended. Voya’s current definition of Excessive Trading and our policy with respect to such trading activity is as follows:
1. Voya actively monitors fund transfer and reallocation activity within its variable insurance and retirement products to identify Excessive Trading.
Voya currently defines Excessive Trading as:
a. More than one purchase and sale of
the same fund (including money
market funds) within a 60 calendar
day period (hereinafter, a purchase
and sale of the same fund is referred
to as a “round-trip”). This means two
or more round-trips involving the
same fund within a 60 calendar day
period would meet Voya’s definition
of Excessive Trading; or
b. Six round-trips within a 12 month
period.
The following transactions are excluded when determining whether trading activity is excessive:
a. Purchases or sales of shares related to non-fund transfers (for example, new purchase payments, withdrawals and loans); b. Transfers associated with scheduled dollar cost averaging, scheduled rebalancing or scheduled asset allocation programs; c. Purchases and sales of fund shares in the amount of $5,000 or less; d. Purchases and sales of funds that affirmatively permit short-term trading in their fund shares, and movement between such funds and a money market fund; and e. Transactions initiated by a member of the Voya family of insurance companies.
2. If Voya determines that an individual has made a purchase of a fund within 60 days of a prior round-trip involving the same fund, Voya will send them a letter warning that another sale of that same fund within 60 days of the beginning of the prior round-trip will be deemed to be Excessive Trading and result in a six month suspension of their ability to initiate fund transfers or reallocations through the Internet, facsimile, Voice Response Unit (VRU), telephone calls to Customer Service, or other electronic trading medium that Voya may make available from time to time (“Electronic Trading Privileges”). Likewise, if Voya determines that an individual has made five round-trips within a 12 month period, Voya will send them a letter warning that another purchase and sale of that same fund within 12 months of the initial purchase in the first round-trip in the prior twelve month period will be deemed to be Excessive Trading and result in a six month suspension of their Electronic Trading Privileges. According to the needs of the various business units, a copy of the warning letters may also be sent, as applicable, to the person(s) or entity authorized to initiate fund transfers or reallocations, the agent/registered representative or investment adviser for that individual. A copy of the warning letters and details of the individual’s trading activity may also be sent to the fund whose shares were involved in the trading activity.
RETIREMENT | INVESTMENTS | INSURANCE
3. If Voya determines that an individual has used one or more of its products to engage in Excessive Trading, Voya will send a second letter to the individual. This letter will state that the individual’s Electronic Trading Privileges have been suspended for a period of six months.
Consequently, all fund transfers or reallocations, not just those which involve the fund whose shares were involved in the Excessive Trading activity, will then have to be initiated by providing written instructions to Voya via regular U.S. mail. During the six month suspension period, electronic “inquiry only” privileges will be permitted where and when possible. A copy of the letter restricting future transfer and reallocation activity to regular U.S. mail and details of the individual’s trading activity may also be sent to the fund whose shares were involved in the Excessive Trading activity.
4. Following the six month suspension 6. Each fund available through Voya’s period during which no additional variable insurance and retirement Excessive Trading is identified, products, either by prospectus or Electronic Trading Privileges may stated policy, has adopted or may again be restored. Voya will continue adopt its own excessive/frequent to monitor the fund transfer and trading policy. Voya reserves reallocation activity, and any future the right, without prior notice, Excessive Trading will result in to implement restrictions and/or an indefinite suspension of the block future purchases of a fund Electronic Trading Privileges. by an individual who the fund has Excessive Trading activity during the identified as violating its excessive/ six month suspension period will also frequent trading policy. All such result in an indefinite suspension of restrictions and/or blocking of future the Electronic Trading Privileges. fund purchases will be done in accordance with the directions Voya 5. Voya reserves the right to limit receives from the fund. fund trading or reallocation privileges with respect to any individual, with or without prior notice, if Voya determines that the individual’s trading activity is disruptive, regardless of whether the individual’s trading activity falls within the definition of Excessive Trading set forth above. Also, Voya’s failure to send or an individual’s failure to receive any warning letter or other notice contemplated under this Policy will not prevent Voya from suspending that individual’s Electronic Trading Privileges or taking any other action provided for in this Policy.
This Excessive Trading Policy applies to products and services offered through the Voya family of companies.
© 2014 Voya Services Company. All rights reserved.
154907 3030779.X.P CN0214-15598-0316
RETIREMENT | INVESTMENTS | INSURANCE Voya Logo
Voya.com
Exhibit 26(k): Opinion and Consent of Counsel
VOYA LETTERHEAD
LAW / PRODUCT FILING UNIT
ONE ORANGE WAY, C2S
WINDSOR, CT 06095-4774
J. NEIL MCMURDIE
SENIOR COUNSEL
PHONE: (860) 580-2824 | EMAIL: NEIL.MCMURDIE@VOYA.COM
April 7, 2017
BY EDGARLINK
U.S. Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549
Re: |
Security Life of Denver Insurance Company |
|
Security Life Separate Account L1 |
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Post-Effective Amendment No. 13 to Registration Statement on Form N-6 |
|
Prospectus Title: Voya VUL-CV |
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File Nos.: 333-147534 and 811-08292 |
Ladies and Gentlemen:
The undersigned serves as counsel to Security Life of Denver Insurance Company, a Colorado life insurance company (the “Company”). It is my understanding that the Company, as depositor, has registered an indefinite amount of securities under the Securities Act of 1933 as provided in Rule 24f-2 under the Investment Company Act of 1940.
In connection with this opinion, I have reviewed the Post-Effective Amendment to the above-referenced Registration Statement on Form N-6. This filing describes the Voya VUL-CV flexible premium adjustable variable universal life insurance policies (the “Policies”) offered by the Company through its Security Life Separate Account L1 (the “Account”). I have also examined, or supervised the examination of, originals or copies, certified or otherwise identified to my satisfaction, of such documents, trust records and other instruments I have deemed necessary or appropriate for the purpose of rendering this opinion. For purposes of such examination, I have assumed the genuineness of all signatures on original documents and the conformity to the original of all copies. On the basis of this examination, it is my opinion that:
1. The Company is a corporation duly organized and validly existing under the laws of the State of Colorado.
2. The Account is a separate account of the Company duly created and validly existing pursuant to the laws of the State of Colorado.
PLAN | INVEST | PROTECT |
Voya Logo |
U.S. Securities and Exchange Commission
Page 2
3. The Policies and the interests in the Account to be issued under the Policies have been duly authorized by the Company.
4. The assets of the Account will be owned by the Company. Under Colorado law and the provisions of the Policies, the income, gains and losses, whether or not realized from assets allocated to the Account, must be credited to or charged against such Account, without regard to other income, gains or losses of the Company.
5. The Policies provide that assets of the Account may not be charged with liabilities arising out of any other business the Company conducts, except to the extent that assets of the Account exceed its liabilities arising under the Policies.
6. The Policies and the interests in the Account, when issued and delivered in accordance with the Prospectus constituting a part of the Registration Statement and in compliance with applicable local law, will be validly issued and binding obligations of the Company in accordance with their respective terms.
I consent to the filing of this opinion as an exhibit to the Registration Statement.
Sincerely,
/s/ J. Neil McMurdie
J. Neil McMurdie
PLAN | INVEST | PROTECT |
Voya Logo |
Exhibit 26(n): Consent of Independent Registered Public Accounting Firm
Exhibit 26(n) – Consent of Ernst and Young LLP, Independent Registered Public Accounting Firm |
We consent to the reference to our firm under the caption “Experts” in Post-Effective Amendment No. 13 to the Registration Statement (Form N-6, No. 333-147534) of Security Life Separate Account L1 of Security Life of Denver, and to the use therein of our reports dated (a) April 5, 2017, with respect to the financial statements of Security Life of Denver and (b) April 7, 2017, with respect to the financial statements of Security Life Separate Account L1 of Security Life of Denver.
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|
|
/s/ Ernst & Young LLP |
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Boston, Massachusetts April 7, 2017 |
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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
|
|
I hereby ratify and confirm on this 28 of Nov., 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ Carolyn M. Johnson
Carolyn M. Johnson, Director and President
Witness & Notary
Attested and subscribed in the presence of the principal and subsequent to the principal subscribing same:
First Witness signs: /s/ Michelle Matarazzo Second Witness Signs: /s/ Wanda Lueken
Printed name of witness: Michelle Matarazzo Printed name of witness: Wanda Lueken
State of Connecticut)
County of Hartford ) ss: at Windsor on Nov. 28, 2016.
Personally Appeared Carolyn M. Johnson, Signer and Sealer of the foregoing instrument, and acknowledged the same to be his free act and deed, before me.
/s/ Mary L. Grimaldi Notary Public |
Mary L. Grimaldi Notary Public, State of Connecticut Commission Expires: 11/30/20 |
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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
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|
I hereby ratify and confirm on this 29th day of November, 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ Alain M. Karaoglan
Alain M. Karaoglan, Director
Notary
State of New York
County of New York
On the 29th day of November in the year 2016, before me, the undersigned, personally appeared Alain M. Karaoglan, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.
Pier A. Moore Notary Public |
/s/ Pier A. Moore Notary Public, Kings County No. 01MO6115336 Qualified in Kings County Certificate Filed in New York County Commission Expires Sept. 7, 2020 |
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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
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|
I hereby ratify and confirm on this 29 day of November, 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ Rodney O. Martin, Jr.
Rodney O. Martin, Jr., Director
Notary
State of New York
County of New York
On the 29th day of November in the year 2016, before me, the undersigned, personally appeared Rodney O. Martin, Jr., personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.
Pier A. Moore Notary Public |
/s/ Pier A. Moore Notary Public, Kings County No. 01MO6115336 Qualified in Kings County Certificate Filed in New York County Commission Expires Sept. 7, 2020
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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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
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I hereby ratify and confirm on this 22nd day of November, 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ Charles P. Nelson
Charles P. Nelson, Director
Witness & Notary
Attested and subscribed in the presence of the principal and subsequent to the principal subscribing same:
First Witness signs: /s/ Susan McNamara Second Witness Signs: /s/ Jill Johnson
Printed name of witness: Susan McNamara Printed name of witness: Jill Johnson
State of Connecticut)
County of Hartford ) ss: at Windsor on Nov. 22, 2016
Personally Appeared Charles P. Nelson, Signer and Sealer of the foregoing instrument, and acknowledged the same to be his free act and deed, before me.
/s/ Mary L. Grimaldi Notary Public |
Mary L. Grimaldi Notary Public, State of Connecticut Commission Expires: 11/30/20 |
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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
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|
I hereby ratify and confirm on this 22 day of November, 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ Chetlur S. Ragavan
Chetlur S. Ragavan, Director
Notary
State of New York
County of New York
On the 22nd day of November in the year 2016, before me, the undersigned, personally appeared Chetlur S. Ragavan, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.
/s/ Pier A. Moore Notary Public |
Pier A. Moore Notary Public, Kings County No. 01MO6115336 Qualified in Kings County Certificate Filed in New York County Commission Expires Sept. 7, 2020
|
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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
|
|
I hereby ratify and confirm on this 2 day of December, 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ Michael S. Smith
Michael S. Smith, Director
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 as 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 Investment Company Act of 1940 and/or the Securities Act of 1933 and any documentation, including Form N-8F, necessary to deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
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REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
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I hereby ratify and confirm on this 21st day of November, 2016, my signature as it may be signed by my said attorneys to any such registration statements and any and all amendments thereto.
Signature
/s/ C. Landon Cobb, Jr.
C. Landon Cobb, Jr, Senior Vice President and Chief Accounting Officer
STATEMENT OF WITNESS
On the date written above, the principal declared to me in my presence that this instrument is his general durable power of attorney and that he had willingly signed or directed another to sign for him, and that he executed it as his free and voluntary act for the purposes therein expressed.
/s/ Diana Blackman Signature
of Witness #1
Diana Blackman Printed
or typed name of Witness #1
5780 Powers Ferry Road Address
of Witness #1
Atlanta, GA 30327
/s/ Wendy Waterman Signature
of Witness #2
Wendy Waterman Printed
or typed name of Witness #2
5780 Powers Ferry Road Address
of Witness #2
Atlanta, GA 30327
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 as 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 deregister any such registrations or to deregister any of the entities (including any issuing separate accounts) associated with the issuance of any such registrations.
COMPANY: Security Life of Denver Insurance Company
INDIVIDUALS WITH POWER OF ATTORNEY: J. Neil McMurdie, Brian H. Buckley, Megan A. Huddleston, Christopher J. Madin, Peter M. Scavongelli and Justin A. Smith
REGISTRATION STATEMENTS FILED UNDER THE SECURITIES ACT OF 1933:
033-74190 |
333-50278 |
333-117329 |
333-119440 |
333-149182 |
|
033-78444 |
333-72753 |
333-119437 |
333-120889 |
333-149870 |
|
033-88148 |
333-73464 |
333-119438 |
333-143973 |
333-153338 |
|
333-34404 |
333-90577 |
333-119439 |
333-147534 |
333-168047 |
|
REGISTRATION STATEMENTS FILED UNDER THE INVESTMENT COMPANY ACT OF 1940:
811-08196 |
811-08292 |
811-08976 |
811-09106 |
|
|
I hereby appoint the above-named individuals to act as my attorney(s)-in-fact, ratify and confirm on this 29th day of November, 2016, my signature as it may be signed by my said attorney(s)-in-fact to any such registration statements and any and all amendments thereto.
Signature
/s/ Michael R. Katz
Michael R. Katz, Senior Vice President and Chief Financial Officer
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this 29th day of November, 2016, by Michael R. Katz.
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JENNIFER M. OGREN Notary Public Minnesota My Commission Expires January 31, 2020 |
|
/s/ Jennifer M. Ogren Jennifer M. Ogren Notary Public |
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