Form N-6 - United States Securities And Exchange Commission (Page 18 of 29) in pdf

(c) Effect of Partial Surrender and Withdrawal. Briefly describe whether partial surrenders or partial withdrawals will affect a

Contract’s cash value or death benefit and whether any charge(s) will apply.

(d) Sub-Account Allocation. Describe how partial surrenders and partial withdrawals will be allocated among the sub-accounts.

Instruction. The Registrant should generally describe the terms and conditions that apply to these transactions. Technical

information regarding the determination of amounts available to be surrendered or withdrawn should be included in the SAI.

(e) Revocation Rights. Briefly describe any revocation rights (e.g., “free-look” provisions), including a description of how the amount

refunded is determined, the method for crediting earnings to premiums during the free-look period, and whether investment

options are limited during the free-look period.

Item 10. Loans

Briefly describe the loan provisions of the Contract, including any of the following that are applicable.

(a) Availability of Loans. A brief statement that a portion of the Contract’s cash surrender value may be borrowed.

(b) Limitations. Any limits on availability of loans (e.g., a prohibition on loans during the first contract year).

(c) Interest. A statement of the amount of interest charged on the loan and the amount of interest credited to the Contract in connection

with the loaned amount.

(d) Effect on Cash Value and Death Benefit. A brief explanation that amounts borrowed under a Contract do not participate in a

Registrant’s investment experience and that loans, therefore, can affect the Contract’s cash value and death benefit whether or

not the loan is repaid. Also, a brief explanation that the cash surrender value and the death proceeds payable will be reduced

by the amount of any outstanding Contract loan plus accrued interest.

(e) Procedures. The loan procedures, including how and when amounts borrowed are transferred out of the Registrant and how

and when amounts repaid are credited to the Registrant.

Item 11. Lapse and Reinstatement

(a) Lapse. State when and under what circumstances a Contract will lapse.

(b) Lapse Options. Describe briefly any lapse options available. Indicate those that will not apply unless they are elected and those

that will apply in the absence of an election. Indicate whether the availability of any of the lapse options is limited.

(c) Effect of Lapse. Describe briefly the factors that will determine the amount of insurance coverage provided under the available

lapse options. Describe concisely how the cash value, surrender value, and death benefit will be determined. If these values

and benefits will be determined in the same manner as prior to lapse, a statement to that effect is sufficient.

(d) Reinstatement. State under what circumstances a Contract may be reinstated. Explain any requirements for reinstatement,

including charges to be paid by the Contractowner, outstanding loan repayments, and evidence of insurability.

Item 12. Taxes

(a) Tax Consequences. Describe the material tax consequences to the Contractowner and beneficiary of buying, holding, exchanging,

or exercising rights under the Contract.

Instruction. Discuss the taxation of death benefit proceeds, periodic and non-periodic withdrawals, loans, and any other distribution

that may be received under the Contract, as well as the tax benefits accorded the Contract and other material tax consequences.

Describe, if applicable, whether the tax consequences vary with different uses of the Contract.

(b) Effect. Describe the effect, if any, of taxation on the determination of cash values or sub-account values.

Form N-6 - United States Securities And Exchange Commission Page 18