Form N-6 - United States Securities And Exchange Commission (Page 23 of 29) in pdf

Item 22. Lapse and Reinstatement

To the extent that the prospectus does not do so, describe the lapse and reinstatement provisions of the Contract. Include a discussion

of any time limits that apply, how the charge to reinstate is determined, and any other conditions that apply to reinstatement. Describe

the features of any lapse options not described in the prospectus, including any factors that will determine the amount or duration of the

insurance coverage, and the limitations and conditions on availability of each lapse option. Identify which contract transactions (e.g.,

loans, partial withdrawals and surrenders, transfers) are available while the Contract is continued under a lapse option. Indicate when

limits on contract transactions are different from those that apply prior to lapse.

Item 23. Loans

(a) Loan Provisions. To the extent that the prospectus does not do so, explain the loan provisions of the Contract.

(b) Amount Available. State how the amount available for a policy loan is calculated.

(c) Effect on Cash Value and Sub-Accounts. Describe how loans and loan repayments affect cash value and how they are allocated

among the sub-accounts.

(d) Interest. Describe how interest accrues on the loan, when it is payable, and how interest is treated if not paid. Explain how

interest earned on the loaned amount is credited to the Contract and allocated to the sub-accounts.

(e) Other Effects. Describe any other effect not already described in the prospectus that a loan could have on the Contract (e.g., the

effect of a Contract loan in excess of cash value).

Item 24. Financial Statements

(a) Registrant. Provide financial statements of the Registrant.

Instruction. Include, in a separate section, the financial statements and schedules required by Regulation S-X [17 CFR 210].

Financial statements of the Registrant may be limited to:

(i) An audited balance sheet or statement of assets and liabilities as of the end of the most recent fiscal year;

(ii) An audited statement of operations for the most recent fiscal year conforming to the requirements of Rule 6-07 of Regulation

S-X [17 CFR 210.6-07];

(iii) An audited statement of cash flows for the most recent fiscal year if necessary to comply with generally accepted accounting

principles; and

(iv) Audited statements of changes in net assets conforming to the requirements of Rule 6-09 of Regulation S-X [17 CFR 210.6-

09] for the two most recent fiscal years.

(b) Depositor. Provide financial statements of the Depositor.

Instructions.

Include, in a separate section, the financial statements and schedules of the Depositor required by Regulation S-X. If the

Depositor would not have to prepare financial statements in accordance with generally accepted accounting principles except

for use in this registration statement or other registration statements filed on Forms N-3, N-4, or N-6, its financial statements

may be prepared in accordance with statutory requirements. The Depositor’s financial statements must be prepared in

accordance with generally accepted accounting principles if the Depositor prepares financial information in accordance

with generally accepted accounting principles for use by the Depositor’s parent, as defined in Rule 1-02(p) of Regulation

S-X [17 CFR 210.1-02(p)], in any report under sections 13(a) and 15(d) of the Securities Exchange Act [15 U.S.C. 78m(a)

and 78o(d)] or any registration statement filed under the Securities Act.

All statements and schedules of the Depositor required by Regulation S-X, except for the consolidated balance sheets

described in Rule 3-01 of Regulation S-X [17 CFR 210.3-01], and any notes to these statements or schedules, may be

omitted from Part B and instead included in Part C of the registration statement. If any of this information is omitted from

Part B and included in Part C, the consolidated balance sheets included in Part B should be accompanied by a statement

that additional financial information about the Depositor is available, without charge, upon request. When a request for the

Form N-6 - United States Securities And Exchange Commission Page 23