Form N-6 - United States Securities And Exchange Commission (Page 12 of 29) in pdf

that may be paid by a representative Contractowner, using appropriate sub-captions. In a footnote to the table, disclose (i)

that the cost of insurance or other charge varies based on individual characteristics; (ii) that the cost of insurance charge or

other charge shown in the table may not be representative of the charge that a particular Contractowner will pay; and (iii)

how the Contractowner may obtain more information about the particular cost of insurance or other charges that would

apply to him or her.

(i)

In disclosing cost of insurance or other charges that depend on Contractowner characteristics for a representative

Contractowner, the Registrant should assume characteristics (e.g., sex, age, and rating classification) that are fairly

representative of actual or expected Contract sales, and describe these characteristics in the sub-caption for the charge

(e.g., “charge for a 40-year-old non-smoking female”). The rating classification used for the representative Contractowner

should be the classification with the greatest number of outstanding Contracts (or expected Contracts in the case of a

new Contract), unless this rating classification is not fairly representative of actual or expected Contract sales. In this

case, the Registrant should use a commonly used rating classification that is fairly representative of actual or expected

Contract sales.

(ii) The Registrant may supplement this disclosure of the minimum charges, maximum charges, and charges for a representative

Contractowner with additional disclosure immediately following the fee table. For example, the additional disclosure

may include an explanation of the factors that affect the cost of insurance or other charge or tables showing the cost of

insurance or other charge for a spectrum of representative Contractowners.

recurring Contract, account, or similar fee should be included in the “Transaction Fees” table.

(d) “Mortality and Expense Risk Fees” may be listed separately on two lines in the table.

(e) If the Registrant (or any other party pursuant to an agreement with the Registrant) imposes any other recurring charge other

than annual Portfolio Company Operating Expenses, add another caption describing it and complete the other columns of

the table for that charge.

4. Total Annual [Portfolio Company] Operating Expenses.

(a) The Registrant may substitute the term used in the prospectus to refer to the Portfolio Companies for the bracketed portion

of the caption provided.

(b) If a registrant has multiple sub-accounts, it should disclose the minimum and maximum “Total Annual [Portfolio Company]

Operating Expenses” include all expenses that are deducted from a Portfolio Company’s assets. The amount of expenses

deducted from a Portfolio Company’s assets are the amounts shown as expenses in the Portfolio Company’s statement of

operations (including increases resulting from complying with paragraph 2(g) of Rule 6-07 of Regulation S-X [17 CFR

210.6-07]). If any Portfolio Company invests in shares of one or more Acquired Funds, “Total Annual [Portfolio Company]

Operating Expenses” for the Portfolio Company must also include fees and expenses incurred indirectly by the Portfolio

Company as a result of investment in shares of one or more Acquired Funds, calculated in accordance with Instruction 3(f)

to Item 3 of Form N-1A (17 CFR 239.15A; 17 CFR 274.11A). For purposes of this paragraph, an Acquired Fund means

any company in which the Portfolio Company invests that (i) is an investment company or (ii) would be an investment

company under section 3(a) of the Investment Company Act (15 U.S.C. 80a3(a)) but for the exceptions to that definition

provided for in sections 3(c)(1) and 3(c)(7) of the Investment Company Act (15 U.S.C. 80a3(c)(1) and 80a-3(c)(7)).

generally accepted accounting principles (see Accounting Principles Board Opinion No. 30). If extraordinary expenses

were incurred by any Portfolio Company that would, if included, materially affect the minimum or maximum amounts

shown in the table, disclose in a footnote to the table what the minimum and maximum “Total Annual [Portfolio Company]

Operating Expenses” would have been had the extraordinary expenses been included.

(d) (i) Base the percentages of “Annual [Portfolio Company] Operating Expenses” on amounts incurred during the most

recent fiscal year, but include in expenses amounts that would have been incurred absent expense reimbursement or fee

waiver arrangements. If a Portfolio Company has a fiscal year different from that of the Registrant, base the expenses

on those incurred during either the period that corresponds to the fiscal year of the Registrant, or the most recently

completed fiscal year of the Portfolio Company. If the Registrant or a Portfolio Company has changed its fiscal year

and, as a result, the most recent fiscal year is less than three months, use the fiscal year prior to the most recent fiscal

year as the basis for determining “Total Annual [Portfolio Company] Operating Expenses.”

(ii) If there have been any changes in “Total Annual [Portfolio Company] Operating Expenses” that would materially affect

Form N-6 - United States Securities And Exchange Commission Page 12

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