Form N-6 - United States Securities And Exchange Commission (Page 14 of 29) in pdf

(2) its type (e.g., money market fund, bond fund, balanced fund, etc.) or a brief statement concerning its investment objectives;

and

(3) its investment adviser and any sub-investment adviser.

Instructions.

Do not describe sub-accounts that fund obligations of the Depositor under contracts that are not offered by this

prospectus.

Registrants are not required to include detailed information about Portfolio Companies in the prospectus. If a Portfolio

Company’s name describes its type, a Registrant need not separately provide the Portfolio Company’s type or a statement

concerning its investment objectives.

(d) Portfolio Company Prospectus. State conspicuously how investors may obtain a prospectus and, if available, a fund profile,

containing more complete information on each Portfolio Company.

(e) Voting. Concisely discuss the rights of Contractowners to instruct the Depositor on the voting of shares of the Portfolio Companies,

including the manner in which votes will be allocated.

Item 5. Charges

(a) Description. Briefly describe all charges deducted from premiums, cash value, assets of the Registrant, or any other source

(e.g., sales loads, premium and other taxes, administrative and transaction charges, risk charges, contract loan charges, cost

of insurance, and rider charges). Indicate whether each charge will be deducted from premium payments, cash value, the

Registrant’s assets, the proceeds of withdrawals or surrenders, or some other source. When possible, specify the amount of any

charge as a percentage or dollar figure (e.g., 0.95% of average daily net assets, $5 per exchange, $5 per thousand dollars of face

amount). For recurring charges, specify the frequency of the deduction (e.g., daily, monthly, annually). Identify the person

who receives the amount deducted, briefly explain what is provided in consideration for the charges, and explain the extent to

which any charge can be modified. Where it is possible to identify what is provided in consideration for a particular charge

(e.g., use of sales load to pay distribution costs, use of cost of insurance charge to pay for insurance coverage), please explain

what is provided in consideration for that charge separately.

Instructions.

Describe the sales loads applicable to the Contract and how sales loads are charged and calculated, including the factors

affecting the computation of the amount of the sales load. If the Contract has a front-end sales load, describe the sales load

as a percentage of the applicable measure of premium payments (e.g., actual premiums paid, target or guideline premiums).

For Contracts with a deferred sales load, describe the sales load as a percentage of the applicable measure of premium

payments (or other basis) that the deferred sales load may represent. Percentages should be shown in a table. Identify any

events on which a deferred sales load is deducted (e.g., surrender, partial surrender, increase or decrease in face amount).

The description of any deferred sales load should include how the deduction will be allocated among sub-accounts of the

Registrant and when, if ever, the sales load will be waived (e.g., if the Contract provides a free withdrawal amount).

Identify the factors that determine the applicable cost of insurance rate. Specify whether the mortality charges guaranteed

in the contracts differ from the current charges. Identify the factors that affect the amount at risk, including investment

performance, payment of premiums, and charges. Disclose how the cost of insurance charge is calculated based on the cost

of insurance rate, amount at risk, and any other applicable factors. If the Depositor intends to use simplified underwriting or

other underwriting methods that would cause healthy individuals to pay higher cost of insurance rates than they would pay

under a substantially similar policy that is offered by the Depositor using different underwriting methods, state that the cost

of insurance rates are higher for healthy individuals when this method of underwriting is used than under the substantially

similar policy.

If the Contract’s charge for premium or other taxes varies according to jurisdiction, identification of the range of current

premium or other taxes is sufficient.

Identify charges that may be different in amount or method of computation when imposed in connection with, or subsequent

to, increases in face amount of a Contract and briefly describe the differences.

Form N-6 - United States Securities And Exchange Commission Page 14

Related Articles

Related forms

Related Categories