As filed with the Securities and Exchange Commission on or about April 25, 2024
Registration
Statement File No. 333-49457
Registration
Statement File No. 811-09020
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-6
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
☐ Pre-Effective Amendment No.
☒ Post-Effective Amendment No. 30
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
☒
Amendment No. 47
(Check
appropriate box or boxes.)
C.M.
Life Variable Life Separate Account I
(Exact
Name of Registrant)
C.M.
Life Insurance Company
(Name
of Depositor)
200
Great Pond Drive, Suite 150, Windsor, Connecticut 06095
(Address
of Depositor’s Principal Executive Offices)
(860)
562-1000
(Depositor’s
Telephone Number, including Area Code)
John
E. Deitelbaum
Senior Vice President
C.M. Life Insurance Company
200
Great Pond Drive, Suite 150
Windsor, Connecticut 06095
(Name
and Address of Agent for Service)
Approximate Date of Proposed Public Offering: Continuous
It is proposed that this filing will become effective (check appropriate box)
| ☐ | immediately upon filing pursuant to paragraph (b) of Rule 485 |
| ☒ | on April 29, 2024 pursuant to paragraph (b) of Rule 485 |
| ☐ | 60 days after filing pursuant to paragraph (a)(1) of Rule 485 |
| ☐ | on __________ pursuant to paragraph (a)(1) of Rule 485 |
If appropriate, check the following box:
| ☐ | This post-effective amendment designates a new effective date for a previously filed post-effective amendment. |
Title of Securities Being Registered: Units of Interest in Variable Universal Life (VUL), an individual, flexible premium, adjustable, variable life insurance policy.
Variable Universal Life (VUL)
Issued by C.M. Life Insurance Company
C.M. Life Variable Life Separate Account I
This prospectus describes an individual, flexible premium, adjustable, variable life insurance policy (policy) issued by C.M. Life Insurance Company (C.M. Life, Company, we, us, or our). C.M. Life is a wholly owned stock life insurance subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual®). While the policy is In Force, it provides lifetime insurance protection on the Insured. The policy is not a way to invest in mutual funds and is not suitable for short-term investment. The Owner (you or your) should consider the policy in conjunction with other life insurance you own. Replacing any existing life insurance policy with this policy or financing the purchase or maintenance of the policy through a loan or through withdrawals from another policy may not be to your advantage. In some states the coverage may be issued by certificate under a group contract.
The policy is no longer available for sale. However, we continue to administer existing policies.
The policy offers a number of investment choices, including a Guaranteed Principal Account (GPA) and one or more variable investment divisions (Separate Account Divisions) offered through our separate account, C.M. Life Variable Life Separate Account I (Separate Account). Each Separate Account Division, in turn, invests in the Funds listed in Appendix A to this prospectus.
You bear the investment risks of any premium allocated to these Separate Account Divisions. The death benefit may vary and the Net Surrender Value will vary, depending on the investment performance of the Funds.
The policy is not (1) a bank or credit union deposit or obligation; (2) FDIC or NCUA insured; (3) insured by any federal government agency or (4) guaranteed by any bank or credit union. The policy may go down in value and provides guarantees that are subject to our financial strength and claims-paying ability.
This prospectus is not an offer to sell the policy in any jurisdiction where it is illegal to offer the policy nor is it an offer to sell the policy to anyone to whom it is illegal to offer the policy. The policy is no longer offered for sale. Owners may, however, continue to make premium payments under existing policies.
YOU MAY CANCEL YOUR POLICY WITHIN 10 DAYS OF RECEIVING IT WITHOUT PAYING FEES OR PENALTIES.
In some states, this cancellation period may be longer. Upon cancellation, you will receive either a full refund of the premiums you paid less any withdrawals and any Policy Debt or your Account Value less any withdrawals and any Policy Debt. You should review this prospectus, or consult with your investment professional, for additional information about the specific cancellation terms that apply.
Additional information about certain investment products, including variable life insurance policies, has been prepared by the Securities and Exchange Commission staff and is available at www.investor.gov.
The SEC has not approved or disapproved the policy or determined that this prospectus is accurate or complete. Any representation that it has is a criminal offense.
Please read this prospectus before investing. You should keep it for future reference.
Effective April 29, 2024
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We have tried to make this prospectus as readable and understandable for you as possible. By the very nature of the policy, however, certain technical words or terms are unavoidable. We have identified the following as some of these words or terms.
Account Value. The value of your investment in the Separate Account Divisions and the GPA.
Accumulation Unit. A unit of measure that we use to determine the value in each Separate Account Division.
Administrative Office. MassMutual Customer Service Center, PO Box 1865, Springfield, MA 01102-1865, (800) 272-2216, (Fax) (866) 329-4527, www.MassMutual.com
Attained Age. The Insured’s age on the Issue Date plus the number of completed Policy Years.
Face Amount. An amount used to determine the insurance coverage the policy provides while it is In Force.
Free Look. Your right to cancel the policy and receive a refund.
Fund(s). The investment entities in which the Separate Account Divisions invest.
Good Order. The actual receipt by our Administrative Office of the instructions related to a request or transaction in writing (or, when permitted, by telephone, fax, website, or other electronic means), within the time limits, if any, along with all forms, information and supporting legal documentation we require to effect the request or transaction. This information includes, to the extent applicable: the completed application or instruction form; your policy number; the transaction amount (in dollars or percentage terms); the names and allocations to and/or from the Separate Account Divisions affected by the request or transaction; the signatures of all Owners; if necessary, Social Security Number or Tax Identification number; tax certification; and any other information or supporting documentation we may require including consents, certifications and guarantees. Instructions must be complete and sufficiently clear so that we do not need to exercise any discretion to follow such instructions. We may, in our sole discretion, determine whether any particular request or transaction is in Good Order, and we reserve the right to change or waive any Good Order requirements at any time. If you have any questions, you may contact our Administrative Office before submitting the form or request.
Grace Period. A period that begins when the Account Value (or Net Surrender Value if there is Policy Debt) is not sufficient to cover monthly charges due and your policy stays In Force, during which you can pay the amount of premium needed to avoid termination.
Guarantee Period. A period in which the policy will remain In Force regardless of the value of the policy. The first Guarantee Period is the first 20 Policy Years, or, if less, to Attained Age 90 of the Insured. The second Guarantee Period is to Attained Age 100 of the Insured.
Guarantee Premium. The monthly premium payment that must be made to meet the Safety Test during the Guarantee Period.
In Force. Your policy has not terminated.
Initial Face Amount. The Face Amount on the Policy Date.
Insurance Risk. The difference between the death benefit and the Account Value.
Insured. The person on whose life the policy is issued.
Issue Date. The date we issue the policy. The Issue Date starts the contestability and suicide periods.
Minimum Death Benefit. The minimum amount of death benefit needed for the policy to qualify as life insurance under Section 7702 of the Internal Revenue Code of 1986, as amended.
Modified Endowment Contract (MEC). A special type of life insurance under federal income tax law. Specifically, the law prescribes a test that is intended to differentiate between policies that are purchased primarily for certain tax advantages, versus policies that are purchased primarily for death protection. MECs are still life insurance and offer tax-free death benefits and tax-deferred cash value accumulation. However, pre-death distributions (including loans) are taxed as “income first” (not cost basis first), meaning they are taxable to the extent of gain in the policy. In addition, distributions may be subject to a 10% additional tax.
Monthly Charge Date. The Policy Date and the same day of each succeeding calendar month.
Net Premium. A premium payment received in Good Order minus the premium expense charge.
Net Surrender Value. Account Value less any surrender charges and Policy Debt.
Planned Premium. The amount selected by you to be paid on a periodic basis to keep your policy In Force.
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Policy Anniversary. The anniversary of the Policy Date.
Policy Date. The starting point for determining the Policy Anniversaries, Policy Years, and Monthly Charge Dates. It is also the day we first deduct monthly charges under the policy.
Policy Debt. All outstanding loans plus accrued interest.
Policy Debt Limit. When total Policy Debt exceeds the Account Value less surrender charges.
Policy Termination. An event where your policy is no longer In Force due to the Account Value becoming too low to support your policy’s monthly charges and the Safety Test is not met, or if the total Policy Debt exceeds the Account Value less surrender charges.
Policy Year. The twelve-month period beginning with the Policy Date, and each successive twelve-month period thereafter.
Safety Test. A no-lapse guarantee that allows you to keep the policy In Force during a Guarantee Period regardless of the value of the policy, as long as the Policy Debt Limit has not been reached.
Separate Account Division. A variable investment division offered through our Separate Account that invests in the corresponding underlying Fund.
Valuation Date. Any day on which the net asset value of the units of each division of the Separate Account is determined. Generally, this is any date the New York Stock Exchange (NYSE), or its successor, is open for trading. A Valuation Date ends when the NYSE closes (usually 4 p.m. Eastern Time).
Written Request. A written or electronic communication or instruction in Good Order sent by you to us at our Administrative Office.
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Important Information You Should Consider About the Policy
|
FEES AND EXPENSES |
LOCATION IN PROSPECTUS |
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|
Charges for Early Withdrawals |
If you surrender the policy, decrease the Face Amount, or the policy lapses in the first 14 Policy Years or the first 14 years following an increase in Face Amount, a surrender charge may apply. For the Initial Face Amount, rates are based on the Insured’s issue age, gender, risk class, and coverage year. For each increase in the Face Amount, rates are based on the Insured’s Attained Age, gender, risk class on the effective date of the increase, and coverage year. The surrender charge is the sum of surrender charges for the Initial Face Amount and all Face Amount increases. |
Fee Tables – Transaction Fees – Surrender Charges |
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Transaction Charges |
In addition to surrender charges, you also may be charged for other transactions. |
Fee Tables – Transaction Fees |
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|
FEES AND EXPENSES |
LOCATION IN PROSPECTUS |
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|
Ongoing Fees and Expenses |
In addition to surrender charges and transaction charges, an investment in the policy is subject to certain ongoing fees and expenses. Some of these fees and expenses, such as the insurance charge and the cost of certain optional riders, are set based on characteristics of the Insured (e.g., age, sex, and risk classification). You should view the policy’s specifications pages for rates applicable to your policy. |
Fee Tables – Periodic Charges Other than Annual Fund Operating Expenses |
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Annual Fee |
Minimum |
Maximum |
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|
Fund options (Fund fees and expenses) |
0.28%(1) |
1.17%(1) |
||
| (1) | As a percentage of Fund assets |
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|
RISKS |
LOCATION IN PROSPECTUS |
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|
Risk of Loss |
You can lose money by investing in this policy. |
Principal Risks – Investment Risks |
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|
Not a Short-Term Investment |
This policy is not a short-term investment and is not appropriate for an investor who needs ready access to cash. |
Overview of the Policy – What is the policy, and what is it designed to do? |
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Risks Associated with Investment Options |
An investment in this policy is subject to the risk of poor investment performance and can vary depending upon the performance of the underlying Funds you choose. |
Principal Risks – Investment Risks |
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|
Insurance Company Risks |
An investment in the policy is subject to the risks related to the Depositor (C.M. Life). Any obligations (including under any fixed account investment option), guarantees, or benefits of the policy are subject to the claims-paying ability of C.M. Life. If C.M. Life experiences financial distress, it may not be able to meet its obligations to you. More information about C.M. Life, including its financial strength ratings, is available at www.MassMutual.com/ratings. |
General Information About the Company, the Separate Account, and the Underlying Funds – The Guaranteed Principal Account (GPA) |
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Policy Lapse |
Your policy could terminate (or lapse) if the Account Value of the policy becomes too low to support the policy’s monthly charges and the Safety Test is not met, or if total Policy Debt exceeds the Account Value less surrender charges. Factors that may cause your policy to lapse include: insufficient premium payments, poor investment performance, withdrawals, and unpaid loans or loan interest. If your policy lapses, you may be able to reinstate it. To reinstate your policy, you must provide us certain written materials we require as well as a premium payment sufficient to keep the policy In Force for three months after reinstatement. The death benefit will not be paid if the policy has lapsed. |
Principal Risks – Policy Termination |
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|
RESTRICTIONS |
LOCATION IN PROSPECTUS |
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Investments |
Generally, you may transfer Account Value among the Separate Account Divisions and the GPA, subject to certain limitations. We also offer two automated transfer programs: Dollar Cost Averaging and Portfolio Rebalancing. •
Transfers from the GPA are limited to one per Policy Year and may not exceed 25% of your Account Value in the GPA (less any Policy Debt).There is one exception to this rule. If you have transferred 25% of the GPA value (less any Policy Debt) for three consecutive years and you have not added any Net Premiums or transferred amounts to the GPA during these three consecutive years, you may transfer the remainder of the GPA value (less any Policy Debt) out of the GPA in the succeeding Policy Year. •
Transfers are not permitted during the Free Look period for those policies in which we refund the premium paid less withdrawals and Policy Debt. •
Transfers (including transfers through automated programs) cannot be processed during a Grace Period. In addition, we reserve the right to reject or restrict transfers if we determine the transfers reflect frequent trading or a market timing strategy, or we are required to reject or restrict by the applicable Fund. |
Transfers |
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Optional Benefits |
Optional benefits, such as riders, may alter the benefits or charges under your policy. Rider availability and benefits may vary by state of issue, and their election may have tax consequences. Riders may have restrictions or limitations. If you elect a particular rider, it may restrict or enhance the terms of your policy, or restrict the availability or terms of other riders. |
Other Benefits Available Under the Policy |
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|
TAXES |
LOCATION IN PROSPECTUS |
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Tax Implications |
•
You should consult with a tax professional to determine the tax implications of an investment in and payments received under the policy. •
If you purchase the policy through a qualified retirement plan, you do not receive any additional tax deferral. •
Withdrawals and partial surrenders are taxed as recovery of cost basis first and income second. Loans and collateral assignments are not taxable when taken. Any gain on your policy is taxed as ordinary income. •
If your policy becomes a Modified Endowment Contract or MEC, loans, collateral assignments, withdrawals, and other pre-death distributions will be taxed as income first and recovery of cost basis second. You may have to pay a penalty tax if you take a distribution before you attain age 59½. |
Federal Income Tax Considerations |
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CONFLICTS OF INTEREST |
LOCATION IN PROSPECTUS |
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Investment Professional Compensation |
Your registered representative may receive compensation in the form of commissions for selling the policy to you. If your registered representative is also a C.M. Life insurance agent, they are also eligible for certain cash and non-cash benefits from us. Cash compensation includes bonuses and allowances based on factors such as sales, productivity and persistency (policy retention). Non-cash compensation includes various recognition items such as prizes and awards as well as attendance at, and payment of the costs associated with attendance at, conferences, seminars and recognition trips, and also includes contributions to certain individual plans such as pension and medical plans. Sales of the policy may help these registered representatives and their supervisors qualify for such benefits. |
Other Information – Distribution |
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Exchanges |
Because the policy is no longer sold, you would not be affected by a scenario in which you are asked to replace an existing life insurance policy you own with a new purchase of this policy. However, in general, you should be aware that some investment professionals may have a financial incentive to offer you a new policy in place of the one you already own. Thus, in general, you should only exchange your life insurance policy if you determine, after comparing the features, fees, and risks of both policies, that it is preferable for you to purchase the new life insurance policy rather than continue to own the existing policy. |
Other Benefits Available Under the Policy – Right to Exchange |
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The policy is a variable life insurance policy that provides a death benefit. It is designed to allow you to fund your life insurance needs through investment in a Guaranteed Principal Account (GPA) and one or more of the variable investment divisions of the C.M. Life Variable Life Separate Account I (Separate Account). The policy allows you to allocate your Net Premiums and Account Value among the various investment choices. Your Account Value will vary based on performance of the investment choices you select and the fees and charges under the policy.
In exchange for your premium payments, we will pay the beneficiary a death benefit when the Insured dies while the policy is In Force. You can select one of the three death benefit options available under the policy. Subject to certain limitations, you can change the death benefit option you selected.
This policy does not mature or provide an endowment in a specific Policy Year, except as follows: Policies issued in Indiana, Maryland, and Texas will mature when the Insured reaches Attained Age 100. Any Net Surrender Value the policy has on the maturity date will be paid to the Owner.
Variable life insurance is designed to help meet long-term insurance needs. It is not suitable as a vehicle for short-term savings. You should not purchase the policy if you will need the premium payments in a short period of time. The policy is not intended for people who need to take early or frequent withdrawals or who intend to engage in frequent trading among the investment Separate Account Divisions. You should consider your need for cash, time horizon for investment and financial goals before submitting an application to purchase the policy. You may want to consult your financial or tax adviser.
When you apply for the policy, you select (within certain limitations) the Planned Premium amount and the payment frequency (annual, semiannual, quarterly, or monthly). The Planned Premium amount is based on a number of factors, including, but not limited to, the Face Amount, the Insured’s issue age, gender and risk classification. Generally, you determine the first premium you want to pay for the policy, but it must be at least equal to the Minimum Initial Premium. The Minimum Initial Premium depends on the premium frequency you choose, the policy’s Initial Face Amount and death benefit option, the Insured’s age, gender and risk classification, and whether the policy has any riders.
After the first premium has been paid, the policy offers premium flexibility, which allows subsequent premium payments to be paid in any amount and at any time, within certain limits. Although you must maintain sufficient Account Value to keep the policy In Force, there is no required schedule for premium payments. You should review the Premium Flexibility section of the prospectus for additional important information.
When a premium payment is received in Good Order, we deduct a premium expense charge to generally cover taxes and acquisition expenses, and the remaining amount, known as the Net Premium, is allocated among the Separate Account Divisions and the GPA according to your current allocation instructions. Depending on the state in which we issue the policy, we may hold your initial Net Premium payments in the money market division until the Free Look period is completed.
Investments in your policy’s Separate Account Divisions are held in an account separate from the general assets of the Company. We have established a segment within the Separate Account to receive and invest premium payments for the Variable Universal Life policies. Currently, the Variable Universal Life segment is divided into over 30 Separate Account Divisions. Each Separate Account Division purchases shares in a corresponding Fund. Information about each corresponding Fund is provided at the back of this prospectus. Please see “Appendix A – Funds Available Under the Policy.”
Net Premium and Account Value allocated to the GPA become part of the Company’s General Investment Account, which supports life insurance and annuity obligations, and are dependent on the Company’s financial strength and claims-paying ability. You do not participate in the investment performance of the assets in our General Investment Account. Instead, we guarantee that amounts allocated to the GPA, in excess of Policy Debt, will earn interest at a minimum rate of 3% per year. We may credit a higher rate at our discretion.
Payment of insufficient premiums may result in the policy lapsing. Although this policy does offer a no-lapse guarantee feature, the Safety Test, there is no guarantee that the policy will remain In Force as a result of making Planned Premium payments.
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Federal law, such as the Internal Revenue Code of 1986, as amended (IRC), places restrictions on the amount of money you may put into a life insurance contract and still meet the definition of life insurance for tax purposes. In order for a policy to meet the IRC’s guidelines, either the Cash Value Accumulation Test or the Guideline Premium Test must be chosen. If you choose the Cash Value Accumulation Test, any premium payment that would exceed its limits may only be accepted if the Insured provides us with satisfactory evidence of insurability. If you choose the Guideline Premium Test, we will refund any amount of premium payment that exceeds its limit.
| • | Choice of Death Benefit Options. The policy offers a choice of one of three death benefit options— a Level Option, Return of Account Value Option, and Return of Premium Option. Please see the “Death Benefit” section for more information. |
| • | Face Amount Changes. You may request an increase or decrease in the Face Amount. If you change your Face Amount, your policy charges, including surrender charges, will change accordingly. If the policy’s Account Value less surrender charges (or Net Surrender Value if there is Policy Debt) cannot keep the policy In Force with the requested change in Face Amount, a premium payment may be required. |
| • | Investment Options. You can choose to allocate your Net Premium payments and Account Value among various investment choices. Your choices include the Separate Account Divisions, each of which invests in an underlying Fund, and the Guaranteed Principal Account (GPA). |
| • | Surrenders and Withdrawals. You may surrender your policy, and we will pay you its Net Surrender Value (Account Value less any surrender charges and Policy Debt). You may also withdraw a part of the Net Surrender Value. A withdrawal reduces the policy values, may reduce the Face Amount of the policy, and may increase the risk that the policy will terminate or lapse. Surrenders and withdrawals may have adverse tax consequences. |
| • | Loans. You may take a loan on the policy once your Account Value exceeds the total of any surrender charges. The policy secures the loan. Taking a loan may have adverse tax consequences and will increase the risk that your policy may terminate or lapse. Interest charges will apply. |
| • | Transfers. Generally, you may transfer funds among the Separate Account Divisions and the GPA, subject to certain limitations. We also offer two automated transfer programs: Dollar Cost Averaging and Portfolio Rebalancing. |
| • | Safety Test. During defined periods, your policy will not terminate or lapse, regardless of its Account Value, as long as you have made the specified minimum premium payments. However, even if the Safety Test is met, this policy may terminate if Policy Debt exceeds the Account Value less surrender charges. |
| • | Assignability. Subject to our approval, you may generally assign the policy as collateral for a loan or other obligation. |
| • | Tax Treatment. You are generally not taxed on the policy’s earnings until you withdraw Account Value from your policy. This is known as tax deferral. |
| • | Additional Rider Benefits. There are additional benefits you may add to your policy by way of riders. An additional charge may apply if you elect a rider. The riders available with this policy are listed in the “Other Benefits Available Under the Policy” section. |
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The following tables describe the fees and expenses that you will pay when buying, owning, surrendering or making withdrawals from the policy. Please refer to your policy’s specification pages for information about the specific fees you will pay each year based on the options you have elected.
The first table describes the fees and expenses that you will pay at the time you buy the policy, surrender the policy, take Account Value out of the policy, or exercise certain rider options.
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Transaction Fees |
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Charge |
When Charge is Deducted |
Amount Deducted |
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All Coverage Years |
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Current: |
5.00% of each premium payment up to and including the expense premium, and 3.00% of any premium payment in excess of the expense premium. |
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Surrender Charges(2)(3)(4) |
Upon surrender, at the time of an elected decrease in Face Amount, or policy lapse. |
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First Coverage Year |
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Current: |
$3.44-$46.29 per $1,000 of Face Amount |
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Representative Insured: |
$11.83 per $1,000 of Face Amount |
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Accelerated Death Benefit Rider for Terminal Illness(6) |
When you elect an accelerated death benefit payment |
Maximum: |
$250 |
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Current: |
$100-$250 |
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Processing Fees |
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Charge |
When Charge is Deducted |
Amount Deducted |
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|
Withdrawal Fee |
When you withdraw a portion of your Account Value from the policy. |
Maximum: |
The lesser of $25 per withdrawal or 2% of the amount withdrawn |
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Current: |
$0 |
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(1) |
The expense premium referenced in the table is used to determine premium expense charges. For the Initial Face Amount, the expense premium is based on the issue age, gender, and risk classification of the Insured. For each increase in the Face Amount, the expense premium is based on the Attained Age, gender, and risk classification of the Insured on the effective date of the increase. The expense premium is shown in the policy; it will be quoted upon request before the policy is issued. |
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Examples of expense premiums are shown in the following table. An example of how the expense premium is used to determine your premium expense charge is located under “Premium Expense Charge” in the “Transaction Fees” sub-section of the “Charges and Deductions” section. |
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Expense Premium Factors Per $1,000 of Face Amount and Applicable Premium Expense Charges |
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Male |
Female |
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Charge |
Age 35 |
Age 55 |
Age 35 |
Age 55 |
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Expense Premium |
8.45 |
21.19 |
7.38 |
17.41 |
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Current Charge |
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A: Current Expense Charge for premiums up to and including Expense Premium (5%) |
0.42 |
1.00 |
0.37 |
0.87 |
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B: Current Premium Expense Charge for premiums exceeding Expense Premium (3%) |
0.35 |
n/a |
0.38 |
0.08 |
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Current Premium Expense Charge for the entire $20 premium (A+B) |
0.77 |
1.00 |
0.75 |
0.95 |
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Maximum Charge |
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A: Maximum Expense Charge for premiums up to and including Expense Premium (7.5%) |
0.63 |
1.50 |
0.55 |
1.31 |
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B: Maximum Premium Expense Charge for premiums exceeding Expense Premium (5%) |
0.58 |
n/a |
0.63 |
0.13 |
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|
Maximum Premium Expense Charge for the entire $20 premium (A+B) |
1.21 |
1.50 |
1.18 |
1.44 |
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(2) |
For the Initial Face Amount, the rates vary by the Insured’s gender, issue age, risk classification, and year of coverage. For each increase in the Face Amount, the rates are based on the Attained Age, gender, and risk classification of the Insured on the effective date of the increase and the year of coverage. The surrender charge is shown in the policy’s specifications pages. The rates in this table may not be representative of the charge that a particular Owner will pay. If you would like information on the surrender charge rates for your particular situation, you can request a personalized illustration from your registered representative or by calling our Administrative Office at (800) 272-2216. |
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(3) |
Under certain circumstances, the surrender charge may not apply when exchanging this policy for a qualifying non-variable life insurance policy made available by us or one of our insurance affiliates. For additional information, please see “Adjustment to Surrender Charges Endorsement (for Internal replacements)” in the Additional Benefits table and “Right to Exchange or Convert” in the “Other Benefits Available Under the Policy” section. |
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(4) |
Surrender charges generally apply for the first 14 Policy Years and the first 14 years following an increase in Face Amount. They will equal the first year’s surrender charge multiplied by the applicable annual percentage listed in the following table. |
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|
Coverage Year |
% |
Coverage Year |
% |
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|
1 |
100% |
8 |
50% |
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2 |
93% |
9 |
43% |
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3 |
86% |
10 |
36% |
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4 |
79% |
11 |
29% |
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|
5 |
71% |
12 |
21% |
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|
6 |
64% |
13 |
14% |
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|
7 |
57% |
14 |
7% |
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(5) |
The rates shown for the “representative insured” are first year rates only. |
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(6) |
The fee we deduct may vary by state, but will not exceed $250. |
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The next table describes the fees and expenses that you will pay periodically during the time that you own the policy, other than Fund fees and expenses.
|
Periodic Charges Other than Annual Fund Operating Expenses |
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Charge |
When Charge is Deducted |
Amount Deducted |
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|
Base Contract Charge: |
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|
Insurance Charge(1) |
Monthly, on the policy’s |
Maximum: |
$83.33 per $1,000 of Insurance Risk |
|
Minimum: |
$0.03 per $1,000 of Insurance Risk |
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|
Current: |
$0.03-$25.01 per $1,000 of Insurance Risk |
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|
Representative Insured: |
$0.10 per $1,000 of Insurance Risk |
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|
Substandard Risk Charge(3) |
Monthly, on the policy’s |
Maximum: |
$83.33 per $1,000 of Insurance Risk |
|
Current: |
$0.01-$83.33 per $1,000 of Insurance Risk |
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|
Administrative Charge |
Monthly, on the policy’s |
Maximum: |
$12 per policy |
|
Current: |
$6 per policy |
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|
Mortality & Expense Risk Charge |
Daily |
Maximum: |
0.90% of the policy’s average daily net assets in the Separate Account |
|
Current: |
0.55% of the policy’s average daily net assets in the Separate Account |
||
|
Face Amount Charge(4) |
Monthly, on the policy’s |
Maximum: |
|
|
Policy Years 6+: |
$0.00 per $1,000 of Face Amount |
||
|
Current: |
|
||
|
Policy Years 6+: |
$0.00 per $1,000 of Face Amount |
||
|
Representative Insured: |
$0.13 per $1,000 of Face Amount |
||
14
|
Periodic Charges Other than Annual Fund Operating Expenses |
|||
|
Charge |
When Charge is Deducted |
Amount Deducted |
|
|
Loan Interest Rate Expense Charge(5) |
Daily, if there is Policy Debt. |
Maximum: |
2.00% annually as a percentage of loaned amount |
|
Current: |
|
||
|
Policy Years 16+: |
0.50% annually as a percentage of loaned amount |
||
|
Optional Benefit Charges: |
|||
|
Disability Benefit Rider(6)(7) |
Monthly, on the policy’s |
Maximum: |
$0.01-$0.26 per $1 of Monthly Deduction(8) plus $0.00-$0.09318 per $1,000 of Face Amount |
|
Current: |
$0.01-$0.26 per $1 of Monthly Deduction(8) plus $0.00-$0.09318 per $1,000 of Face Amount |
||
|
Representative Insured: |
$0.06 per $1 of Monthly Deduction(8) plus $0.01183 per $1,000 of Face Amount |
||
|
Guaranteed Insurability Rider(6) |
Monthly, on the policy’s |
Maximum: |
$0.03-$0.11 per $1,000 of Option Amount |
|
Current: |
$0.03-$0.11 per $1,000 of Option Amount |
||
|
Representative Insured: Male, Age 35, Non-Tobacco, Standard Risk(6) |
$0.11 per $1,000 of Option Amount |
||
|
Other Insured Rider(1)(9) |
Monthly, on the policy’s |
Maximum: |
$83.33 per $1,000 of Rider Face Amount |
|
Current: |
When issued on the base insured: $0.03-$22.51 per $1,000 of Rider Face Amount |
||
|
Representative Insured: |
When issued on the base insured: $0.09 per $1,000 of Rider Face Amount |
||
15
|
Periodic Charges Other than Annual Fund Operating Expenses |
|||
|
Charge |
When Charge is Deducted |
Amount Deducted |
|
|
Substitute of Insured Rider |
When you elect to substitute the Insured |
Maximum: |
$75 |
|
Current: |
$75 |
||
|
Waiver of Monthly Charges Rider(6)(7) |
Monthly, on the policy’s Monthly Charge Date |
Maximum: |
$0.01-$0.26 per $1 of Monthly Deduction(8) |
|
Current: |
$0.01-$0.26 per $1 of Monthly Deduction(8) |
||
|
Representative Insured: Male, Age 35, Non-Tobacco, Standard Risk(2)(6)(7) |
$0.06 per $1 of Monthly Deduction(8) |
||
| (1) | The rates vary by a number of factors including, but not limited to, the Insured’s gender, issue age, risk classification, and year of coverage. The rates may not be representative of the charge that a particular Owner will pay. If you would like information on the insurance charge rates for your particular situation, you can request a personalized illustration from your registered representative or by calling our Administrative Office at (800) 272-2216. The insurance charge rates reflected in this table are for standard risks. The maximum insurance charge rates are based on the 1980 Commissioners’ Standard Ordinary (1980 CSO) Tables. Insurance Risk is a liability of the insurance company and is equal to the difference between the death benefit and the Account Value. |
| (2) | The rates shown for the “representative insured” are first year rates only. |
| (3) | Additional mortality fees may be assessed for risks associated with certain health conditions, occupations, aviation, avocations or driving history (i.e., substandard risks). These fees can be in the form of higher rates known as table ratings and/or flat extra charges. Table ratings and flat extra charges are components in the calculation of the insurance charges for the base policy and any applicable monthly rider insurance charges. Substandard risk charges only apply if certain factors result in an Insured having a substandard rating and will be shown in the policy’s specifications pages. Note that the insurance charges, including any table ratings and/or flat extra charges, will not exceed $83.33 per $1,000 of Insurance Risk or Face Amount. For additional information, refer to the “Monthly Charges Against the Account Value” sub-section of the “Charges and Deductions” section of this prospectus. |
| (4) | The face amount charge is set at issue for the Initial Face Amount and, for each increase, on the effective date of the increase. The charges will vary by the issue age of the Insured for the Initial Face Amount and, for increases, by the Insured’s Attained Age on the effective date of the increase. Once set, however, the charge per $1,000 of Face Amount remains constant during each segment’s first five coverage years, and then, in coverage years six and beyond, it is zero. The range of face amount charges reflected for coverage years 1 – 5 simply accounts for the range of issue ages for all potential Insureds. |
| (5) | We charge interest on policy loans, but we also credit interest on the cash value we hold as collateral on policy loans. The Loan Interest Rate Expense Charge represents the difference (cost) between the loan interest rate charged and the interest credited on loaned amounts. |
| (6) | The rates shown are for standard risks and vary by the Insured’s gender and Attained Age. Exception – The rates for the Guaranteed Insurability Rider vary by the Insured’s gender and issue age. The rates in this table may not be representative of the charge that a particular Owner will pay. If you would like information on the rates for your particular situation, you can request a personalized illustration from your registered representative or by calling out Administrative Office at (800) 272-2216. |
| (7) | For substandard risks, the rates may be increased by a multiple of 1 or 2 times the standard rates shown. |
| (8) | The policy’s “monthly deduction” is the sum of the following current monthly charges: (a) administrative charge; (b) face amount charge; (c) insurance charge; and (d) any applicable rider charges. |
| (9) | Additional mortality fees may be assessed for risks associated with certain health conditions, occupations, aviation, avocations or driving history (i.e., substandard risks). These fees can be in the form of higher rates known as table ratings and/or flat extra charges. Table ratings and flat extra charges are components in the calculation of the insurance charges for the base policy and any applicable monthly rider insurance charges. Substandard risk charges only apply if certain factors result in an Insured having a substandard rating and will be shown in the policy’s specifications pages. Note that the insurance charges, including any table ratings and/or flat extra charges, will not exceed $83.33 per $1,000 of rider face amount. For additional information, refer to the “Monthly Charges Against the Account Value” sub-section of the “Charges and Deductions” section of this prospectus. |
All of the monthly charges listed in the table above are deducted proportionately from the then current Account Values in the Separate Account and the GPA (unless you direct us to deduct monthly charges from one Separate Account Division or from the GPA). The mortality and expense risk charge is deducted from the assets of the Separate Account only.
16
The next table shows the minimum and maximum total operating expenses charged by any of the Funds in which your Separate Account Divisions invest that you may pay periodically during the time that you own the policy. A complete list of Funds in which the Separate Account Divisions invest, including their annual expenses, may be found at the back of this document in Appendix A. More detail concerning each Fund’s fees and expenses is contained in the prospectus for each Fund.(1)
|
Annual Fund Operating Expenses |
Minimum |
Maximum |
|
(expenses are deducted from Fund assets, including management fees, distribution, and/or 12b-1 fees, and other expenses) |
0.28% |
1.17% |
| (1) | The Fund expenses used to prepare this table were provided to us by the Funds. We have not independently verified such information provided to us by Funds that are not affiliated with us. |
17
The value of your policy will fluctuate with the performance of the Separate Account Divisions you select. Your Separate Account Divisions may decline in value or they may not perform to your expectations. You bear the investment risk of any Account Value invested in the Separate Account Divisions. It is possible you could lose your entire investment.
The type of investments that a Fund company makes will also create risk. A comprehensive discussion of the risks of each of the Funds underlying the Separate Account Divisions may be found in that Fund’s prospectus. You should read the Fund’s prospectus carefully before investing.
Variable life insurance is designed to help meet long-term financial goals. It is not suitable as a vehicle for short-term savings. You should not purchase the policy if you will need the premium payment in a short period of time. We may restrict short-term investment strategies.
If you surrender your policy, you will be subject to surrender charges during the first 14 Policy Years and during the first 14 years after an increase in the policy’s Face Amount. The surrender charge will reduce the proceeds payable to you. In some situations, it is possible that there will be little or no value in the policy after the surrender charges are deducted. An early surrender can also result in adverse tax consequences.
A withdrawal will reduce your policy’s Account Value by the amount withdrawn. If the policy’s Account Value is reduced to a point where it cannot meet a monthly deduction, your policy may terminate. A withdrawal may also reduce your policy’s Face Amount and may have adverse tax consequences.
Taking a loan from your policy has several risks: (1) it may increase the risk that your policy will terminate; (2) it will have a permanent effect on your policy’s Net Surrender Value; (3) it may increase the amount of premium needed to keep the policy In Force; (4) it will reduce the death benefit proceeds; and (5) it may have adverse tax consequences.
Your policy could terminate if the Account Value of the policy becomes too low to support the policy’s monthly charges and the Safety Test is not met. In addition, the policy could terminate if the total Policy Debt Limit is reached (i.e., when Policy Debt equals or exceeds the Account Value less any surrender charges that apply: (1) on a Monthly Charge Date or (2) on the Valuation Date a premium payment is received, if the policy is in the Grace Period). Factors that may cause your policy to terminate include: insufficient premium payments, poor investment performance, withdrawals, and unpaid loans or loan interest. Poor investment performance of the Funds selected by the Owner and the deduction of policy fees and monthly charges may result in termination of the policy even if all Planned Premiums are timely paid, unless the Safety Test is met and there is no Policy Debt. No death benefit or other benefits under the policy will be paid once the policy terminates.
Limitations on Access to Cash Value
| • | Withdrawals were not available in the first Policy Year. |
| • | We may not allow a withdrawal if it would reduce the Face Amount to less than the policy’s minimum Face Amount. |
| • | The minimum withdrawal is $100 and the maximum withdrawal is 75% of the Net Surrender Value. |
| • | There may be little to no cash value available for loans and withdrawals in the policy’s early years. |
18
It is possible that we could experience financial difficulty in the future and even become insolvent, and therefore unable to provide all of the guarantees and benefits that we promise that exceed the value of the assets in the Separate Account.
Certain transactions (including, but not limited to, withdrawals, surrenders and loans) may lead to a taxable event. Under certain circumstances (usually if your premium payments in the first seven years or less exceed specified limits), your policy may become a “Modified Endowment Contract” (MEC). Under federal tax law, loans, collateral assignments, withdrawals, and other pre-death distributions received from a MEC are taxed as income first and recovery of cost basis second. Also, distributions includable in income received before you attain age 59½ may be subject to a 10% penalty tax.
Existing tax laws that benefit this policy may change at any time.
We have the right to increase certain policy and rider charges; however, the charges will not exceed the maximum charges identified in the fee tables. If we increase a policy or rider charge, you may need to increase the amount and/or frequency of your premiums to keep your policy In Force. We will notify the Owner of any such changes through a prospectus supplement.
Cybersecurity and Certain Business Continuity Risks
The Company relies on its parent, MassMutual, for various operating and administrative services including computer systems. MassMutual’s operations support complex transactions and are highly dependent on the proper functioning of information technology and communication systems. Any failure of or gap in the systems and processes necessary to support complex transactions and avoid systems failure, fraud, information security failures, processing errors, cyber intrusion, loss of data and breaches of regulation may lead to a materially adverse effect on MassMutual’s results of operations and corporate reputation. In addition, MassMutual must commit significant resources to maintain and enhance its existing systems in order to keep pace with applicable regulatory requirements, industry standards and customer preferences. If MassMutual fails to maintain secure and well-functioning information systems, it may not be able to rely on information for product pricing, compliance obligations, risk management and underwriting decisions. In addition, MassMutual cannot assure investors or consumers that interruptions, failures or breaches in security of these processes and systems will not occur, or if they do occur, that they can be timely detected and remediated. The occurrence of any of these events may have a materially adverse effect on MassMutual’s businesses, results of operations and financial condition. For additional detail regarding cybersecurity and related risks, please see “Other Information – Computer System, Cybersecurity, and Service Disruption Risks” in this prospectus.
19
General Information about the Company, the Separate Account and the Underlying Funds
C.M. Life Insurance Company (C.M. Life) is a wholly owned stock life insurance subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual). C.M. Life provides life insurance and annuities to individuals and group life insurance to institutions. MassMutual and its domestic life insurance subsidiaries provide individual and group life insurance, disability insurance, individual and group annuities and guaranteed interest contracts to individual and institutional customers in all 50 states of the U.S., the District of Columbia and Puerto Rico. Products and services are offered primarily through MassMutual’s distribution channels: MassMutual Financial Advisors, MassMutual Strategic Distributors, Institutional Solutions and Worksite.
MassMutual is organized as a mutual life insurance company domiciled in the Commonwealth of Massachusetts. C.M. Life’s home office is located at 200 Great Pond Drive, Suite 150, Windsor, Connecticut 06095.
The Guaranteed Principal Account
Net Premium and Account Value you allocate to the GPA become part of the General Investment Account of the Company. Subject to applicable law, the Company has sole discretion over the assets in its General Investment Account. The assets of our General Investment Account support our insurance and annuity obligations and are subject to our general liabilities from our business operations and to claims by our creditors. We use General Investment Account assets for many purposes including to pay death benefits, withdrawals, surrenders, policy loans, and transfers from the GPA as well as to pay amounts we provide to you through elected additional features and guarantees that are in excess of your Variable Account Value allocated to the Separate Account. We refer to our ability to meet any contractual obligations as our claims-paying ability.
It is important to note that there is no guarantee that we will always be able to meet our claims-paying obligations, and as with any insurance product, there are risks to purchasing this policy. For this reason, when purchasing a policy and making investment decisions, you should consider our financial strength and claims-paying ability to meet our obligations under the policy.
The General Investment Account has not been registered under the Securities Act of 1933 (1933 Act) or the Investment Company Act of 1940 (1940 Act) because of exemptive and exclusionary provisions. Accordingly, neither the General Investment Account nor any interests therein are generally subject to the provisions of the 1933 Act or the 1940 Act. Disclosures regarding the GPA or the General Investment Account, however, are subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements made in this prospectus.
You do not participate in the investment performance of the assets in our General Investment Account. Instead, we guarantee that amounts allocated to the GPA, in excess of Policy Debt, will earn interest at a minimum rate of 3% per year. We may credit a higher rate of interest at our discretion. The interest rate is declared monthly and becomes effective on the first of each calendar month. You bear the risk that no higher rates of interest will be credited.
For amounts in the GPA equal to any Policy Debt, the guaranteed minimum interest rate per year is the greater of:
| • | 3%; or |
| • | the policy loan rate less the maximum loan interest rate expense charge. |
You may obtain interest rate information for the GPA, including the loaned portion and the non-loaned portion, by calling our Administrative Office.
The part of your premium that you invest in your policy’s Separate Account Divisions is held in an account that is separate from the general assets of the Company. This account is called the C.M. Life Variable Life Separate Account I. In this prospectus we will refer to it simply as the “Separate Account.”
We established the Separate Account on February 2, 1995, according to the laws of the State of Connecticut. We registered it with the SEC as a unit investment trust under the 1940 Act.
The Separate Account exists to keep your life insurance assets separate from our other Company assets. As such, any income, gains, and losses credited to, or charged against, the Separate Account reflect only the Separate Account’s own investment experience. At no
20
time will the Separate Account reflect the investment experience of the Company’s other assets. The Company owns the assets in the Separate Account. The Separate Account is divided into divisions, each of which purchases shares in a corresponding underlying Fund. Any death benefits, withdrawals, surrenders, policy loans, or transfers of Account Value from the Separate Account Divisions will be redeemed from the corresponding Funds.
We may not use the assets in the Separate Account to pay any liabilities of the Company other than those arising from the policies. We may, however, transfer to our General Investment Account any assets that exceed anticipated obligations of the Separate Account. We are required to pay, from our general assets, if necessary, all amounts promised under the VUL policies. In the event that the assets in the Separate Account exceed the liabilities, the Company may only withdraw seed capital and earned fees and charges.
We have established a segment within the Separate Account to receive and invest premium payments for the VUL policies. Currently, the VUL segment is divided into over 30 Separate Account Divisions. Each Separate Account Division purchases shares in a corresponding Fund. The underlying Funds are listed in Appendix A. Please see “Appendix A – Funds Available Under the Policy.”
Some of the underlying Funds offered are similar to mutual funds offered in the retail marketplace. They may have the same investment objectives and portfolio managers as the retail funds. The Funds offered in the VUL policy, however, are set up exclusively for variable annuity and variable life insurance products. Their shares are not offered for sale to the general public, and their performance results will differ from the performance of the retail funds.
We reserve the right, subject to compliance with applicable federal securities laws and regulations and any other federal or state law, to create separate accounts and to make certain material changes to the structure and operation of the Separate Account, including, among other things to:
| • | create new Separate Account Divisions; |
| • | create new segments of the Separate Account for any new variable life insurance products we create in the future; |
| • | eliminate Separate Account Divisions; |
| • | close existing Separate Account Divisions to allocations of new premium payments by current or new policy owners; |
| • | combine the Separate Account or any Separate Account Divisions with one or more different separate accounts or Separate Account Divisions; |
| • | transfer the assets of the Separate Account or any Separate Account Divisions that we may determine to be associated with the class of contracts to which the policy belongs to another separate account or Separate Account Division; |
| • | operate the Separate Account as a management investment company under the 1940 Act or in any other form permitted by law; |
| • | de-register the Separate Account under the 1940 Act in the event such registration is no longer required; and |
| • | change the name of the Separate Account. |
We do not recommend or endorse any particular Fund and we do not provide investment advice. You are responsible for choosing the Funds, and the amounts allocated to each, that are appropriate for your own individual circumstances and your investment goals, financial situation, and risk tolerance. Since investment risk is borne by you, decisions regarding investment allocations should be carefully considered. Information regarding each Fund, including (i) its name; (ii) its type (e.g., money market fund, bond fund, balanced fund, etc.); (iii) its investment adviser and any sub-investment adviser; (iv) current expenses; and (v) performance is available in Appendix A to this prospectus. Please see “Appendix A – Funds Available Under the Policy.” In making your investment selections, we encourage you to thoroughly investigate all of the information regarding the Funds that is available to you. Each Fund has issued a prospectus that contains more detailed information about the Fund.
After you select Funds for your initial premium, you should monitor and periodically re-evaluate your allocations to determine if they are still appropriate.
You bear the risk of any decline in your policy Account Value resulting from the performance of the Funds you have chosen. You can find the prospectuses and other information about the Funds online at www.MassMutual.com/VUL. You can also request this information at no cost by calling (800) 272-2216 or sending an email request to MassMutualServiceCenter@MassMutual.com.
21
Addition, Removal, Closure, or Substitution of Funds
We do not guarantee that each Fund will always be available for investment through the policy. We have the right to change the Funds offered through the policy, but only as permitted by law. If the law requires, we will also get your approval and the approval of any appropriate regulatory authorities. Changes may only impact certain Owners. Examples of possible changes include: adding new Funds or Fund classes, removing existing Funds or Fund classes, closing existing Funds or Fund classes, or substituting a Fund with a different Fund. New or substitute Funds may have different fees and expenses. We will not add, remove, close, or substitute any shares attributable to your interest in a Separate Account Division without notice to you and prior approval of the SEC, to the extent required by applicable law. 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 your policy belongs.
Conflicts of Interest
The Funds available with this policy may also be available to registered separate accounts offering variable annuity and variable life products of other affiliated and unaffiliated insurance companies, as well as to the Separate Account and other separate accounts of MassMutual. Although we do not anticipate any disadvantages to these arrangements, it is possible that a material conflict may arise between the interests of the Separate Account and one or more of the other separate accounts participating in the Funds. A conflict may occur, for example, as a result of a change in law affecting the operations of variable life and variable annuity separate accounts, differences in the voting instructions of the owners and payees and those of other insurance companies, or some other reason. In the event of a conflict of interest, we will take steps necessary to protect owners and payees, including withdrawing the Separate Account from participation in the Funds involved in the conflict or substituting shares of other Funds.
Compensation We Receive from Funds, Advisers and Sub-Advisers
Compensation We Receive from Funds
We and certain of our insurance affiliates receive compensation from certain Funds pursuant to Rule 12b-1 under the 1940 Act. This compensation is paid out of a Fund’s assets and may be as much as 0.25% of the average net assets of an underlying Fund that are attributable to the variable annuity and variable life insurance products issued by us and certain of our insurance affiliates that offer the particular Fund (MassMutual’s variable contracts). An investment in a Fund with a 12b-1 fee will increase the cost of your investment in this policy.
Compensation We Receive from Advisers and Sub-Advisers
We and certain of our insurance affiliates also receive compensation from the advisers and sub-advisers to some of the Funds. We may use this compensation to pay expenses that we incur in promoting, issuing, distributing and administering the policy, and providing services on behalf of the Funds in our role as intermediary to the Funds. The amount of this compensation is determined by multiplying a specified annual percentage rate by the average net assets held in that Fund that are attributable to the variable annuity or variable life insurance products offered by us and certain of our insurance affiliates. These percentage rates differ, but currently do not exceed 0.25%. Some advisers and sub-advisers pay us more than others; some advisers and sub-advisers do not pay us any such compensation.
The compensation may not be reflected in a Fund’s expenses because this compensation may not be paid directly out of a Fund’s assets. These payments also may be derived, in whole or in part, from the advisory fee deducted from Fund assets. Owners, through their indirect investment in the Funds, bear the costs of these advisory fees (please see the Funds’ prospectuses for additional information).
In addition, we may receive fixed dollar payments from the advisers and sub-advisers to certain Funds so that the adviser and sub-adviser can participate in sales meetings conducted by us. Attending such meetings provides advisers and sub-advisers with opportunities to discuss and promote their Funds.
For a list of the Funds whose advisers currently pay such compensation, visit
www.MassMutual.com/privacy-policy/compensation-arrangements or call our Administrative Office.
Compensation and Fund Selection
When selecting the Funds that will be available with the policy, we consider each Fund’s investment strategy, asset class, manager’s reputation, and performance. We also consider the amount of compensation that we receive from the Funds, their advisers, sub-advisers, or their distributors. The compensation that we receive may be significant, and we may profit from this compensation. Additionally, we offer certain Funds through the policy at least in part because they are managed by an affiliate.
22
Voting Rights
We are the legal owner of the Fund shares. However, you have the right to instruct us how to vote on questions submitted to the shareholders of the Funds supporting the policy. This right is limited to the extent you are invested in those Separate Account Divisions on the record date. We vote shares for which we do not receive instructions in the same proportion as the shares for which we do receive instructions. The shares held in the name of the Company and its affiliates will also be proportionally voted. This process may result in a small number of Owners controlling the vote. There is no minimum number of votes required. If we determine that we are no longer required to comply with the above, we will vote the shares in our own right.
Your right to instruct us is based on the number of shares of the Funds attributable to your policy. The number of shares of any Fund, attributable to your policy, is determined by dividing the Account Value held in that Separate Account Division by $100. Fractional votes are counted.
We will send you or, if permitted by law, make available electronically, proxy material and a form to complete giving us voting instructions.
We may, when required by state insurance regulatory authorities, disregard voting instructions, if such instructions would require shares to be voted so as to cause a change in the sub-classification or investment objective of a Fund or to approve or disapprove an investment advisory contract for the Fund. In addition, we may disregard voting instructions that would require a change in the investment policy or investment adviser of one or more of the available Funds. Our disapproval of such change must be reasonable and based on a good faith determination that the change would be contrary to state law or otherwise inappropriate, considering the Fund’s objectives and purpose. If we disregard Owner voting instructions, we will advise Owners of our action and the reasons for such action.
This section describes the charges and deductions we make under the policy to compensate us for the services and benefits we provide, costs and expenses we incur, and risks we assume. We may profit from the charges deducted, and we may use any such profits for any purpose, including payment of distribution expenses.
In addition, the Funds pay operating expenses that are deducted from the assets of the Funds. For more information about these expenses, please see the individual Fund prospectuses.
Premium Expense Charge
We deduct a premium expense charge from each premium payment you make. The premium expense charge is generally used to cover taxes assessed by a state and/or other governmental agency as well as acquisition expenses.
The current premium expense charge we deduct is 5% of premium paid up to and including the expense premium, and 3% of premium over the expense premium. The maximum premium expense charge we can deduct is 7.5% of premium paid up to and including the expense premium, and 5% of premium over the expense premium.
For the Initial Face Amount, the expense premium is based on the issue age, gender, and risk classification of the Insured. For each increase in the Face Amount, the expense premium is based on the Attained Age, gender, and risk classification of the Insured on the effective date of the increase. Please see footnote (1) in the “Transaction Fees” sub-section of the “Fee Tables” section for additional information.
23
Example:
Assume that you are a 35-year-old male, non-smoker and that your policy has a Face Amount of $200,000. The expense premium for your policy is $8.45 per $1,000 of Face Amount or $1,690 (200 x $8.45).
Now assume that you make a premium payment of $1,000. Your maximum premium expense charge is 7.5% of your premium payment up to and including the policy’s expense premium. Since your premium payment is less than the policy’s expense premium of $1,690, your premium expense charge will be $75 (7.5% x $1,000).
If your premium payment had been $2,000, it would have exceeded the expense premium by $310 ($2,000 – $1,690). Consequently, your maximum premium expense charge would have been $142.25:
| • | 7.5% of $1,690 ($126.75) plus |
| • | 5% of $310 ($15.50). |
If you have increased the policy Face Amount, the expense premium used for this charge is the total of the expense premiums for the Initial Face Amount and for all increases.
Surrender Charges
There is a charge if you fully surrender your policy or if you decrease the Face Amount. We will also take any applicable surrender charges if your policy lapses. (Please see the “Policy Termination and Reinstatement” section for more information.) Generally, these charges will apply during:
| • | the first 14 years of coverage; and |
| • | the first 14 years after each increase in Face Amount. |
However, in no event will we deduct surrender charges after the Insured’s Attained Age 99.
This surrender charge is also sometimes called a “deferred sales load.” The charge compensates us for expenses incurred in issuing the policy’s Initial Face Amount, issuing Face Amount increases, and for the recovery of acquisition costs.
The surrender charge is a charge against the Account Value of the policy. The deduction is taken from the Separate Account Divisions and the non-loaned portion of the GPA in proportion to the values in each on the effective date of the surrender, or decrease in Face Amount or lapse.
We calculate surrender charges separately for the Initial Face Amount and for each increase in the Face Amount. For the Initial Face Amount, the rates are based on the Insured’s issue age, gender, risk classification, and coverage year. For each increase in the Face Amount, the rates are based on the Insured’s gender, Attained Age, risk classification on the effective date of the increase, and coverage year. The surrender charge for the policy is the sum of the surrender charges for the Initial Face Amount and all Face Amount increases.
The surrender charge is equal to the first-year surrender charge multiplied by the following annual percentages:
|
Coverage Year |
% |
Coverage Year |
% |
|||
|
1 |
100% |
8 |
50% |
|||
|
2 |
93% |
9 |
43% |
|||
|
3 |
86% |
10 |
36% |
|||
|
4 |
79% |
11 |
29% |
|||
|
5 |
71% |
12 |
21% |
|||
|
6 |
64% |
13 |
14% |
|||
|
7 |
57% |
14 |
7% |
|||
The surrender charge will not exceed $50 per $1,000 of Face Amount.
24
Surrender Charges for Decreases in Face Amount
If you decrease your policy’s Face Amount, we cancel all or a part of your Face Amount segment(s) and charge a pro-rata surrender charge that will not exceed the surrender charge associated with each decreased or cancelled segment multiplied by the proportion of that segment that is decreased.
After a Face Amount decrease, the surrender charge for a decreased segment that remains In Force is decreased proportionately. This charge provides us with a proportional compensation for expenses incurred in issuing the policy’s Initial Face Amount, issuing Face Amount increases, and for the recovery of acquisition costs.
Rider Processing Fee
We will assess a one-time processing fee at the time you exercise the Accelerated Death Benefit Rider for Terminal Illness. The maximum processing fee for the Accelerated Death Benefit Rider for Terminal Illness is $250 (the fee may vary by state, but will not exceed $250). The fee is deducted from the accelerated benefit payment and will reduce the amount you receive.
Loan Interest Rate Expense Charge
We assess a loan interest rate expense charge against policies with outstanding loan balances. This charge, which reimburses us for the ongoing expenses of administering the loan, represents the difference between the interest we charge on policy loans and the interest we credit on the cash value we hold as collateral for policy loans. The loan interest rate minus the loan interest expense charge is the interest rate we use to credit interest to the loaned portion of the GPA.
The maximum loan interest rate expense charge is 2%. The current loan interest rate expense charge is 0.90% for Policy Years 1 through 15 and 0.50% in subsequent Policy Years. We reserve the right to increase the loan interest rate expense charge in order to ensure your loan is not treated as a taxable distribution under federal income tax rules, which may change over time.
Monthly Charges Against the Account Value
The following charges are deducted from the Account Value on each Monthly Charge Date. The Monthly Charge Date is the date on which monthly charges for the policy are due. The first Monthly Charge Date is the Policy Date, and subsequent Monthly Charge Dates are on the same day of each succeeding calendar month.
Your policy’s Monthly Charge Date will be listed in the policy’s specifications pages. Monthly charges are deducted from the Separate Account Division(s) and the GPA in proportion to the non-loaned values in each on the date the deduction is taken.
Administrative Charge and Face Amount Charge
The administrative charge and the face amount charge reimburse us for issuing and administering the policy, and for such activities as processing claims, maintaining records and communicating with you.
Administrative Charge
The current administrative charge is $6 per policy, per month.
Face Amount Charge
The face amount charge is based on a rate per $1,000 of the Initial Face Amount. We calculate the face amount charge separately for the Initial Face Amount and for each increase in the Face Amount. It is based on:
| • | the issue age of the Insured for the Initial Face Amount; and |
| • | for each increase, the Insured’s Attained Age at time of the increase; and it is multiplied by the segment Face Amount. This charge is assessed during the first five years of each segment of coverage. |
Please see the “Periodic Charges Other than Fund Operating Expenses” table in the “Fee Tables” section for additional information.
Insurance Charge
The insurance charge reimburses us for providing you with life insurance protection. We deduct an insurance charge based on your policy’s Insurance Risk. Insurance Risk is equal to the difference between the death benefit (discounted one month at the guaranteed
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minimum interest rate for the GPA) and the Account Value. These deductions are made by deducting Accumulation Units, proportionately, from each Separate Account Division in which you have an Account Value and the GPA.
The maximum insurance charge rates associated with your policy are shown in the policy’s specification pages. These rates are calculated using the 1980 Commissioners’ Standard Ordinary Mortality Tables, or, for unisex rates, the 1980 Commissioners’ Ordinary Mortality Table B. The rates are also based on a number of factors, including, but not limited to, the age, gender (unless the unisex rates are used), and risk classification of the person insured by the policy.
We may charge less than the maximum monthly insurance charges shown in the table(s). In this case, the monthly insurance charge rates will be based on a number of factors including, but not limited to, our expectations for future mortality, investment earnings, persistency, expense and tax results, capital and reserve requirements, and profits. The expense component of these rates is used to offset sales and issue expenses, which decrease over time. Any change in these charges will apply to all individuals in the same class.
Insurance charges for the policy will not be the same for all Owners. Your policy’s actual or current insurance charge rates are based on a number of factors including, but not limited to, the Insured’s issue age (and age at increase, if applicable), risk classification, and gender (unless unisex rates are used). These rates generally increase as the Insured’s age increases. The rates will vary with the number of years the coverage has been In Force and with the total Face Amount of the policy.
How the Insurance Charge is Calculated
| (1) | If the Minimum Death Benefit is not in effect: |
| We calculate the insurance charge on each Monthly Charge Date by multiplying the current insurance charge rate by a discounted Insurance Risk. |
| The Insurance Risk is the difference between: |
| • | the amount of benefit available on that date, under the death benefit option in effect, discounted by the monthly equivalent of 3% per year; and |
| • | the Account Value at the beginning of the policy month reduced by any rider charges (other than disability riders) before the monthly insurance charge is due. |
| The following three steps describe how we calculate the insurance charge for your policy: |
| Step 1: We calculate the total Insurance Risk for your policy: |
| (a) | We divide the amount of benefit under the death benefit option in effect that would be available at the beginning of the policy month by 1.0024662698 (which is the monthly equivalent of 3%); and |
| (b) | We subtract your policy’s Account Value at the beginning of the policy month from the amount we calculated in Step 1(a) above. |
| Step 2: We allocate the Insurance Risk in proportion to the Face Amount of each segment and each increase that is In Force as of your Monthly Charge Date. |
| Step 3: We multiply the amount of each allocated Insurance Risk by the insurance charge rate for each coverage segment. The sum of these amounts is your insurance charge. |
| (2) If the Minimum Death Benefit is in effect: |
| We also calculate the insurance charge on each Monthly Charge Date. However, in Step 1 we calculate the total Insurance Risk for your policy, as described in (1) above: |
| (i) | assuming the Minimum Death Benefit is in effect; and then |
| (ii) | assuming the Minimum Death Benefit is not in effect. |
| Step 2: We allocate the Insurance Risk: |
| (a) | calculated for (ii) in proportion to the Face Amount of each segment and each increase that is In Force as of your Monthly Charge Date; and |
| (b) | we subtract the risk calculated for (ii) from the risk calculated for (i) and allocate that amount to the last underwritten segment. |
| Step 3: We multiply the amount of each allocated Insurance Risk by the insurance charge rate for each coverage segment. The sum of these amounts is your insurance charge. |
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Additional Information about the Insurance Charge
We will apply any changes in the insurance charges uniformly for all Insureds of the same issue age, gender, risk classification, and whose coverage has been In Force for the same length of time. No change in insurance class or cost will occur on account of deterioration of the Insured’s health after we issue the policy. We do not offer special underwriting programs for this product such as guaranteed issue or simplified issue underwriting; therefore, individuals of similar health will be classified similarly.
Because your Account Value and death benefit may vary from month to month, your insurance charge may also vary on each Monthly Charge Date. The cost of your insurance depends on the amount of Insurance Risk on your policy. Factors that may affect the Insurance Risk include:
| • | the amount and timing of premium payments; |
| • | investment performance; |
| • | fees and charges assessed; |
| • | the addition or deletion of certain riders; |
| • | rider charges; |
| • | withdrawals; |
| • | policy loans; |
| • | changes to the Face Amount; and |
| • | changes to the death benefit option. |
Substandard Risk Charge
Additional mortality fees may be assessed for risks associated with certain health conditions, occupations, aviation, avocations or driving history (i.e., substandard risks). These fees can be in the form of higher rates known as table ratings and/or flat extra charges. Table ratings and flat extra charges are components in the calculation of the insurance charges for the base policy and any applicable monthly rider insurance charges. Substandard risk charges only apply if certain factors result in an Insured having a substandard rating and will be shown in the policy’s specifications pages. Note that the insurance charges, including any table ratings and/or flat extra charges, will not exceed $83.33 per $1,000 of Insurance Risk or Face Amount. Table ratings and/or flat extra charges can remain on a policy for as long as 20 years, or Attained Age 65, if longer.
Rider Charges
The charges for the following riders are deducted from the Account Value on each Monthly Charge Date: Disability Benefit Rider, Guaranteed Insurability Rider, Other Insured Rider, and Waiver of Monthly Charges Rider.
The rates for the Disability Benefit Rider vary by the Insured’s gender and Attained Age. Charges for the Disability Benefit Rider have two components. A portion of the charge is based on current rates ranging from $0.01 to $0.26 per $1 of monthly deductions. The remainder of the charge is based on current rates ranging from $0.00 to $0.09318 per $1,000 of Face Amount. The monthly charges for this rider will continue up to, but not including, the Policy Anniversary date on which the Insured’s Attained Age becomes 65.
The rates for the Guaranteed Insurability Rider vary by the Insured’s gender and issue age. Current rates range from $0.03 to $0.11 per $1,000 of optional insurance coverage. The monthly charges for this rider will continue up to, but not including, the Policy Anniversary date on which the Insured’s Attained Age becomes 46.
The rates for the Other Insured Rider vary by the Insured’s gender, Attained Age, and risk classification. Current rates range from $0.03 to $25.01 per $1,000 of rider face amount. The monthly charges for this rider will not continue beyond the Insured’s Attained Age 100.
The rates for the Waiver of Monthly Charges Rider vary by the Insured’s gender and Attained Age. The current range of rates is $0.01 to $0.26 per $1 of monthly deductions. The monthly charges for this rider will continue up to, but not including, the Policy Anniversary date on which the Insured’s Attained Age becomes 65.
Directed Monthly Deduction Program
You may elect to have us deduct the monthly charges from one Separate Account Division, or from the GPA, rather than from all options on a pro rata basis. This feature is called the Directed Monthly Deduction Program (DMDP).
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To elect the DMDP, complete our Directed Monthly Deduction Program Request form and send it to us for processing. The DMDP will continue as long as you have enough value in your selected option on a Monthly Charge Date to cover the monthly charges then due, or unless you have specified a termination date in your request form.
If you don’t have sufficient Account Value to cover the monthly charges due in your selected option on any Monthly Charge Date, we will deduct the monthly charges pro rata from all investment options with Account Value. We may, at any time, modify, suspend, or terminate the DMDP without prior notification.
Daily Charges Against the Separate Account
The following charge is deducted daily from the Separate Account.
Mortality and Expense Risk Charge
The mortality and expense risk charge imposed is a percentage of the policy’s average daily net assets held in the Separate Account:
| • | The maximum charge is 0.90% for all Policy Years; |
| • | The current charge is 0.55% for all Policy Years. |
This charge compensates us for mortality and expense risks we assume under the policies and for acquisition costs. The mortality risk assumed is that the insurance charges will be insufficient to meet actual claims. The expense risk assumed is that the expenses incurred in issuing, distributing, and administering the policies will exceed the administrative and face amount charges collected.
If the mortality and expense risk charge is not sufficient to cover the mortality and expense risk, we will bear the loss. If the amount of the charge is more than sufficient to cover those risks and expenses, we will make a profit on the charge. We may use this profit for any purpose, including the payment of marketing and distribution expenses for the policy.
The Separate Account purchases shares of the Funds at net asset value. The net asset value of each Fund reflects expenses already deducted from the assets of the Fund. Such expenses include investment management fees and other expenses and may include acquired Fund fees and expenses. For some Funds, expenses will also include 12b-1 fees to cover distribution and/or certain service expenses. When you elect a Fund as an investment choice, that Fund’s expenses will increase the cost of your investment in the policy. Please see each Fund’s prospectus for more information regarding these expenses.
There may be special circumstances that result in sales or administrative expenses or Insurance Risks that are different than those normally associated with this policy. Under such circumstances, we may vary the charges and other terms of the policies; however, the charges will not exceed the maximum charges identified in the fee tables. We will make these variations only in accordance with uniform rules we establish.
The Owner is the person who will generally make the choices that determine how the policy operates while it is In Force. You name the Owner in the application. However, the Owner may be changed by Written Request received in Good Order at our Administrative Office while the policy is In Force; therefore, the Owner is the person we have listed as such in our records. Generally, the change of Owner will take effect as of the date the Written Request is signed. However, in certain states you may not change Owners without our approval. We will refuse or accept any requested change of Owner on a non-discriminatory basis. Please see your policy. Each change will be subject to any payment we made or other action we took before receiving the owner designation form in Good Order. When we use the terms “you” or “your,” in this prospectus, we are referring to the Owner.
The sale of your policy to an unrelated investor, sometimes called a viatical or a life settlement, typically has transaction costs that may reduce the value of your estate. Discuss the benefits and risks of selling your life insurance policy with your registered representative and estate planner before you enter into a life settlement. Such a sale may also have adverse tax consequences. Please see “Sales to Third Parties” in the “Federal Income Tax Considerations” section for additional information.
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The Insured is the person on whose life the policy is issued. The Owner must have an insurable interest in the life of the Insured in order for the policy to be valid under state law and for the policy to be considered life insurance for income tax purposes. If the policy does not comply with the insurable interest requirements of the issue state at the time of issue, the policy may be deemed void from the beginning. As a result, the policy would not provide the intended benefits. It is the responsibility of the Owner to determine whether proper insurable interest exists at the time of policy issuance.
You named the Insured in the application for the policy. We did not issue a policy for an Insured who was age 86 or older. Before issuing a policy, we required evidence to determine the insurability of the Insured. This usually required a medical examination.
The beneficiary is the person you named in the application to receive any death benefit. You may name different classes of beneficiaries, such as primary and secondary. These classes will set the order of payment. There may be more than one beneficiary in a class.
Unless an irrevocable beneficiary has been named, you can change the beneficiary at any time before the Insured dies by sending a Written Request in Good Order to our Administrative Office. The Owner must have the consent of an irrevocable beneficiary to change the beneficiary. Generally, the change will take effect as of the date your request is signed. Each change will be subject to any payment we made or other action we took before receiving the Written Request in Good Order.
If no beneficiary is living or in existence when the Insured dies, we will pay you the death benefit unless the policy states otherwise. If you are deceased, the death benefit will be paid to your estate.
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The policy is no longer offered for sale. Owners may, however, continue to make premium payments under existing policies. To purchase a policy, you had to send us a completed application. The minimum Initial Face Amount of a policy was $50,000. The Owner selected, within our limits, the policy’s Face Amount. The Face Amount is used to determine the amount of insurance coverage the policy provides while it is In Force. The Initial Face Amount is the Face Amount on the Policy Date. It is on the first page of your policy.
We determined whether to accept or reject the application for the policy and the Insured’s risk classification. Coverage under the policy generally became effective on the policy’s Issue Date. However, if we did not receive the first premium and all documents necessary to process the premium by the Issue Date, then coverage began on the date those items were received in Good Order at our Administrative Office.
Policies generally were issued with rates that vary based on a number of factors including, but not limited to, the gender of the Insured. In some situations, however, we may have issued unisex policies (policies whose rates do not vary by the gender of the Insured). Policies issued in Montana are unisex, and policies issued as part of an employee benefit plan may be unisex. References in this prospectus to sex-distinct policy values are not applicable to unisex policies.
Your Right to Return the Policy
You had the right to examine your policy. If you changed your mind about owning it, generally, you could have cancelled it (Free Look) within ten calendar days after you received it. If you cancelled the policy, we issued you a refund. The Free Look period and the amount refunded vary. Please see your policy for the refund that applied in your state of issue; however, the following information will give you a general understanding of our refund procedures if you cancel your policy.
In most states, we refunded the policy’s Account Value less any withdrawals and any Policy Debt. In these states, if your premium was received in Good Order, it was allocated to your investment choices on the day after the policy’s Issue Date.
In certain other states we refunded the premium paid less withdrawals and Policy Debt. In those states your premium payment was held in the money market division of the Separate Account during the Free Look period.
To cancel the policy, you had to return it to us at our Administrative Office, to the registered representative who sold the policy, or to one of our agency offices.
Sending Requests in Good Order
From time to time you may want to submit a Written Request for a change of beneficiary, a transfer, or some other action. A Written Request is a written or electronic communication or instruction in Good Order sent by the Owner to, and received by, MassMutual at our Administrative Office. We may allow requests to be submitted by telephone, fax, website, or other electronic media for certain transactions. Telephone, fax, email, or internet transactions may not always be available. Telephone, fax, and computer systems can experience outages or slowdowns for a variety of reasons. These outages or slowdowns may prevent or delay our receipt of your request. We may make these additional methods available at our discretion. They may be suspended or discontinued at any time without notice. Not all transaction types can be requested by telephone, website, or other electronic media.
The Planned Premium amount you pay is based on a number of factors including, but not limited to:
| • | the Face Amount; |
| • | the Insured’s gender; |
| • | the Insured’s issue age; |
| • | the Insured’s risk classification; |
| • | policy charges; |
| • | premium frequency; |
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| • | the death benefit option; and |
| • | whether or not any riders apply to the policy. |
Generally, you determined the first premium you wanted to pay for the policy, but it must have been at least equal to the Minimum Initial Premium. The Minimum Initial Premium depended on:
| • | your chosen premium frequency; |
| • | the policy’s Initial Face Amount and death benefit option; |
| • | the issue age, gender, and risk classification of the Insured; and |
| • | any riders on the policy. |
When applying for the policy, you selected (within the policy limitations) the Planned Premium and payment frequency (annual, semiannual, quarterly, or monthly).
We will send premium notices for the Planned Premium based on the payment frequency in effect. If a Planned Premium payment is not made, the policy will not necessarily terminate. Conversely, making Planned Premium payments does not necessarily guarantee the policy will remain In Force. To keep the policy In Force, it must have sufficient Account Value or satisfy the Safety Test. Please see the “Policy Termination and Reinstatement” section. We will send a notice of any premium needed to prevent termination of the policy.
Before making any changes to the timing or frequency of premium payments, you should speak to your registered representative to determine the impact on your policy.
To change the amount and frequency of Planned Premiums, you may contact our Administrative Office.
If you change the frequency of your Planned Premiums, your policy may be at risk of lapsing because we do not bill for fractional payment periods.
Example:
Your Policy Anniversary is on January 2 and the planned quarterly premium payments are made. We have been sending a bill each quarter for the applicable premium. In June, we receive notification to change the Planned Premium from quarterly payments to annual payments. In this situation, we would have sent bills for the first and second quarterly payments of that year. After receiving notification, however, we would not send a bill for the last two quarterly payments of that year. We will send the next bill approximately 30 days prior to the next Policy Anniversary (January 2). If a premium payment is not made between July and January 2, your policy may lapse before the next bill is received. For more information on what happens if your policy lapses, please see the “Policy Termination and Reinstatement” section.
We will apply your subsequent premium payment on the Valuation Date that it is received in Good Order. If we receive your payment in Good Order on a non-Valuation Date or after the end of a Valuation Date, we will apply your payment on the next Valuation Date. If a payment is dishonored by your bank after we have applied the premium payment to your policy, the transaction will be deemed void and your payment will be reversed.
If mailing a subsequent premium payment, it must be sent to the appropriate lockbox (premium payment processing service). Premium payments sent to an incorrect lockbox will be considered not in Good Order. We will reroute the payment and apply it on the Valuation Date when it is determined to be in Good Order. Please see below for lockbox address details.
If you or the premium payer receives a single bill for multiple insurance policies, subsequent premium payments must be sent to:
|
Regular Mail: |
Overnight Mail |
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For all other policies, subsequent premium payments must be sent to the appropriate address:
|
Regular Mail: |
Overnight Mail |
We also offer options to allow you to pay premiums through electronic means.
You may initiate single or recurring premium payments for your In Force policy through our secure website (www.MassMutual.com) or by calling our Administrative Office and authorizing an electronic draft from your bank account. Requests to initiate electronic payments are effective on the Valuation Date that you submit the request in Good Order. If you wish to cancel an electronic payment, you must call our Administrative Office at (800) 272-2216 before the end of the Valuation Date (generally 4:00 p.m. Eastern Time).
If a bank draft is dishonored by your bank after we have applied the payment to your policy, the transaction will be deemed void and your payment will be reversed. In addition, if you have established recurring electronic payments and we are unable to obtain payment from your bank account, we will discontinue the recurring payments. You may re-establish recurring electronic payments through our website.
Premium payments may also be made by wire transfer. For instructions on how to make a premium payment by wire transfer, please call our Administrative Office at (800) 272-2216.
For recurring withdrawals from a bank account, you may elect to pay premiums by pre-authorized check. Under this procedure, we automatically deduct premium payments each month from a designated bank account. We will not send a bill for these automatic payments. The pre-authorized check service may commence at any time, unless your policy has entered its Grace Period. This service can be discontinued by contacting our Administrative Office.
This pre-authorized check (PAC) service may be initiated or updated by visiting www.MassMutual.com or by submitting a completed PAC form.
We must receive notification of account changes at our Administrative Office at least seven business days before the next draft. Withdrawals from the designated bank account may be selected for any date between the 1st and the 28th of the month. If a date is not specified, we will select a date and send notice in advance of the first draft. We may discontinue the pre-authorized check service for your policy and automatically switch to quarterly billing if:
| • | your policy has insufficient value to cover the monthly charges due and the elected premium is below the current monthly deductions; or |
| • | we are unable to obtain the premium payment from the bank account; or |
| • | your policy has exceeded a MEC or premium limitation and we are unable to apply your payment. |
After the first premium has been paid, within limits, any amount of premium may be paid at any time while the Insured is living. Although you must maintain sufficient Account Value to keep the policy In Force, there is no required schedule for premium payments.
We reserve the right to return any premium payment under $20.
In some cases, applying a subsequent premium payment in a Policy Year could result in your policy becoming a MEC. We will not credit any amount of premium to your policy that will exceed MEC limits unless we have written authorization from the Owner to allow MEC status. For more information on MECs, please see the “Federal Income Tax Considerations” section.
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Additionally, we will follow these procedures:
| • | If we receive a subsequent premium that will cause the policy to become a MEC, we will apply to your policy the portion of the payment that will not cause the policy to become a MEC, and we will refund the balance to the premium payer, except under the circumstances described below. The portion of the payment that is credited to the policy will be credited as of the Valuation Date the payment was determined to be in Good Order. |
| • | If the Policy Anniversary is within 14 calendar days of the date the premium is received, and applying the entire payment on the Policy Anniversary will not cause the policy to become a MEC, we will hold the payment without interest until the Policy Anniversary and credit the entire payment as of the Policy Anniversary date. If the anniversary date is not a Valuation Date, the payment will be credited as of the next Valuation Date following the Policy Anniversary. |
| • | We will notify the Owner of any premium that is held or refunded in order to prevent the policy from becoming a MEC. You may also contact us to provide different instructions regarding how to apply your premium payment. |
The procedures above may not apply if there has been a material change to your policy that impacts the 7-pay limit or 7-pay period because the start of the 7-pay period may no longer coincide with your Policy Anniversary. Please see “Modified Endowment Contracts” in the “Federal Income Tax Considerations” section for additional information.
The Internal Revenue Code of 1986, as amended (IRC), has limits on the amount of money you may put into a life insurance contract and still meet the definition of life insurance for tax purposes. There are two tests under the IRC rules that are used to determine if a policy meets their guidelines:
| • | the Cash Value Accumulation Test; and |
| • | the Guideline Premium Test. |
If you chose the Cash Value Accumulation Test, the maximum premium you can pay each Policy Year is the greatest of:
| • | an amount equal to $100 plus double the annual expense premium for the policy; |
| • | the amount of premium paid in the preceding Policy Year; or |
| • | the highest premium payment amount that would not increase the Insurance Risk. |
If you chose the Guideline Premium Test, the maximum premium for each Policy Year is the lesser of:
| • | the maximum premium for the Cash Value Accumulation Test; or |
| • | the Guideline Premium Test amount stated in the policy. |
We may refund any amount of premium payment that exceeds the limit under the test you have chosen for your policy. If we did not refund the excess premium, the policy may no longer qualify as life insurance under federal tax law.
For more information on these tests, please see the “Minimum Death Benefit” sub-section in the “Death Benefit” section.
Certain policy changes (including but not limited to a change in Face Amount, a change in risk classification, or the addition or removal of a rider) may cause a recalculation of your maximum premium limit. If a policy change results in a decrease to your premium limit, we may be required to distribute funds from your policy to maintain its compliance with the adjusted premium limit. The distribution will be taken from the Separate Account Division(s) and the GPA in proportion to the non-loaned values in each.
How and When Your Premium is Allocated
Net Premium
Net Premium is a premium payment received in Good Order minus the premium expense charge. Please see “Premium Expense Charge” in the “Transaction Fees” sub-section of the “Charges and Deductions” section.
Premiums that would cause the policy to be a MEC may not be considered to be in Good Order, depending on when they are received.
The Net Premium is allocated among the Separate Account Divisions and the GPA according to your current instructions we have on record.
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Net Premium Allocation
When applying for the policy, you indicated how you wanted Net Premiums allocated among the Separate Account Divisions and the GPA. Net Premium allocations must be whole-number percentages that add up to 100%.
You may change your Net Premium allocation at any time by sending a Net Premium Allocation Request form to us at our Administrative Office. You may also change your Net Premium allocation by telephone or fax transmission, subject to certain restrictions. To help protect against unauthorized or fraudulent telephone instructions, we will take reasonable steps to confirm that telephone instructions given to us are genuine. We may record all telephone conversations.
When accompanied by a premium payment, a request to change your Net Premium allocation will become effective on the Valuation Date we receive your request, in Good Order, at our Administrative Office. If we receive your request in Good Order on a non-Valuation Date or after the end of a Valuation Date, the change will become effective on the next Valuation Date.
When Net Premium is Allocated
The Policy Date, Issue Date, and Register Date of your policy may affect the allocation of your Net Premiums. This, in turn, can affect the investment earnings and interest credited on your policy Account Value.
The Issue Date is the date we actually issued the policy. The Policy Date normally is the same date as the Issue Date. However, you may have requested in your application that we set the Policy Date to be a specific date earlier than the Issue Date. In this case, monthly charges were deducted as of the requested Policy Date. These deductions covered a period of time during which the policy was not in effect. If you paid a premium with your application and requested a Policy Date earlier than the date we received your payment, interest did not accrue on your policy prior to the policy’s Issue Date.
The Register Date is the first date premiums were allocated. We set the Register Date depending on the type of refund offered under your policy’s right to return provision. The Register Date must also have been a Valuation Date.
Allocation of Initial and Subsequent Net Premiums
We allocated any Net Premiums received on or before the Issue Date of the policy to our General Investment Account. We did not pay you interest on these amounts, or credit any interest to your policy prior to the Issue Date.
These amounts were allocated among the Separate Account Divisions and the GPA according to your Net Premium allocation instructions on the Register Date.
If your state of issue requires us, upon Free Look, to refund the policy’s Account Value, less any withdrawals and any Policy Debt, the Register Date is the Valuation Date that was on, or next followed, the later of:
| • | the day after the Issue Date of the policy; or |
| • | the date we or the appropriate lockbox receives the balance of your initial premium. |
If your state of issue requires us, upon Free Look, to refund the premium you paid less withdrawals and any Policy Debt:
| • | The Register Date is the Valuation Date that was on, or next followed, the latest of: |
| (A) | the day after the end of the right to return period; or |
| (B) | the day we received the first premium payment in Good Order. |
| • | We allocated existing values, held as of the policy’s Issue Date, to the money market division on the first Valuation Date after the Issue Date. (The existing values at that time would be any money taken with the application for the policy less any applicable charges.); and |
| • | We allocated any Net Premiums received after the Issue Date but before the Register Date to the money market division. |
We will apply your subsequent premium payments that are received on or after the Register Date, on the Valuation Date we receive them in Good Order. Subsequent premium payments will be applied in accordance with your premium allocation instructions.
While your policy is In Force, you may generally transfer all or part of a Separate Account Division’s Account Value to any other Separate Account Division or the GPA by indicating the dollar amount or the percentage (in whole numbers) you wish to transfer. Transfers are effective as of the Valuation Date we receive your request in Good Order at our Administrative Office. If we receive your
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request in Good Order on a non-Valuation Date or after the end of a Valuation Date, your transfer request will be effective as of the next Valuation Date.
We do not charge for transfers.
You can submit transfer requests by sending us a Written Request on our transfer request form. You may also submit transfer requests by telephone, or by other means we authorize, subject to certain restrictions. To help protect against unauthorized or fraudulent telephone instructions, we will take reasonable steps to confirm that telephone instructions given to us are genuine. We may record all telephone conversations.
Generally, there is no limit on the number of transfers you may make among the Separate Account Divisions. However, as discussed more fully in the section below, we may terminate, limit, or modify your ability to make such transfers due to frequent trading or market timing activity.
We limit transfers from the GPA to the Separate Account Divisions to one each Policy Year.
In addition, you may not transfer more than 25% of the GPA Value (less any Policy Debt) at the time of transfer. There is one exception to this rule. If:
| • | you have transferred 25% of the GPA Value (less any Policy Debt) each year for three consecutive Policy Years; and |
| • | you have not added any Net Premiums or transferred amounts to the GPA during these three years, |
then you may transfer the remainder of the GPA Value (less any Policy Debt) out of the GPA in the succeeding Policy Year.
Limits on Frequent Trading and Market Timing Activity
This policy and its investment choices are not designed to serve as vehicles for what we have determined to be frequent trading or market timing trading activity. We consider these activities to be abusive trading practices that can disrupt the management of a Fund in the following ways:
| • | by requiring the Fund to keep more of its assets liquid rather than investing them for long-term growth, resulting in lost investment opportunity; and |
| • | by causing unplanned portfolio turnover. |
These disruptions, in turn, can result in increased expenses and can have an adverse effect on Fund performance that could impact all Owners and beneficiaries under the policy, including long-term Owners who do not engage in these activities. Therefore, we discourage frequent trading and market timing trading activity and will not accommodate frequent transfers among the Funds. Organizations and individuals that intend to trade frequently and/or use market timing investment strategies should not purchase this policy. We have adopted policies and procedures to help us identify those individuals or entities that we determine may be engaging in frequent trading and/or market timing trading activities. We monitor trading activity to uniformly enforce those procedures. However, those who engage in such activities may employ a variety of techniques to avoid detection. Our ability to detect frequent trading or market timing may be limited by operational or technological systems, as well as by our ability to predict strategies employed by Owners (or those acting on their behalf) to avoid detection. Therefore, despite our efforts to prevent frequent trading and the market timing of Funds among the Separate Account Divisions, there can be no assurance that we will be able to identify all those who trade frequently or those who employ a market timing strategy (or any intermediaries acting on behalf of such persons) and curtail their trading in every instance. Moreover, our ability to discourage and restrict frequent trading or market timing may be limited by decisions of state regulatory bodies and court orders that we cannot predict. In addition, some of the Funds are available with variable products issued by other insurance companies. We do not know the effectiveness of the policies and procedures used by these other insurance companies to detect frequent trading and/or market timing. The Funds may reflect lower performance and higher expenses across all policies as a result of undetected abusive trading practices. If we, or the investment adviser to any of the Funds available with this policy, determine that an Owner’s transfer patterns reflect frequent trading or employment of a market timing strategy, we will allow the Owner to submit transfer requests by regular mail only. We will not accept the Owner’s transfer request if submitted by overnight mail, fax, the telephone, our website, or any other type of electronic medium. Additionally, we may reject any single trade that we determine to be abusive or harmful to the Fund.
Orders for the purchase of Fund shares may be subject to acceptance by the Fund. Therefore, we reserve the right to reject, without prior notice, any Fund transfer request if the investment in the Fund is not accepted for any reason. In addition, Funds may assess a redemption fee (which we reserve the right to collect) on shares held for a relatively short period. The prospectuses for the Funds describe the Funds’ frequent trading or market timing policies and procedures, which may be more or less restrictive than the policies and procedures we have adopted. We have entered into a written agreement, as required by SEC regulation, with each Fund or its principal underwriter that obligates us to provide to the Fund promptly upon request certain information about the trading activity of
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individual Owners, and to execute instructions from the Fund to restrict or prohibit further purchases or transfers by specific Owners who violate the frequent trading or market timing policies established by the Fund. Owners and other persons with interests in the policies should be aware that the purchase and redemption orders received by the Funds generally are “omnibus” orders from intermediaries, such as retirement plans or separate accounts funding variable insurance contracts. The omnibus orders reflect the aggregation and netting of multiple orders from individual Owners of variable contracts and/or individual retirement plan participants. The omnibus nature of these orders may limit the Funds in their ability to apply their frequent trading or market timing policies and procedures. It may also require us to restrict or prohibit further purchases or transfers as requested by a Fund on all policies owned by an Owner whose trading activity under one variable contract has violated a Fund’s frequent trading or market timing policy. If a Fund believes that an omnibus order reflects one or more transfer requests from Owners engaged in frequent trading or market timing activity, the Fund may reject the entire omnibus order.
We will notify you in writing if we reject a transfer or if we implement a restriction due to frequent trading or the use of market timing investment strategies. If we do not accept a transfer request, no change will be made to your allocations per that request. We will then allow you to resubmit the rejected transfer by regular mail only. Additionally, we may in the future take any of the following restrictive actions that are designed to prevent the employment of a frequent trading or market timing strategy:
| • | not accept transfer instructions from an Owner or other person authorized to conduct a transfer; |
| • | limit the number of transfer requests that can be made during a Policy Year; and |
| • | require the value transferred into a Fund to remain in that Fund for a particular period of time before it can be transferred out of the Fund. |
We will apply any restrictive action we take uniformly to all Owners we believe are employing a frequent trading or market timing strategy. These restrictive actions may not work to deter frequent trading or market timing activity. We reserve the right to revise our procedures for detecting frequent trading and/or market timing at any time without prior notice if we determine it is necessary to do so in order to better detect frequent trading and/or market timing, to comply with state or federal regulatory requirements, or to impose different restrictions on frequent traders and/or market timers. If we modify our procedures, we will apply the new procedure uniformly to all Owners.
The Dollar Cost Averaging (DCA) Program is an automated transfer program that provides scheduled transfers of a set amount from a selected Separate Account Division to any other Separate Account Division(s) or the GPA.
DCA will not assure you of a profit and will not protect you against a loss in declining markets. Since our DCA Program anticipates continued investment during periods of fluctuating prices, you should consider your ability to assume the financial risks of continued DCA through periods of fluctuating price levels.
Initially, a minimum of $1,000 of Account Value is placed in one Separate Account Division. Then, over a stipulated period of time and at a preset frequency, a specified amount of Account Value is transferred from that Separate Account Division and allocated to other Separate Account Divisions or to the GPA. The minimum transfer amount for the DCA Program is $100. Account Value held in the GPA cannot be transferred out of the GPA through the DCA Program.
Since the same specified dollar amount is transferred to each Separate Account Division at a preset frequency, more Accumulation Units are purchased when prices are low than when prices are high. Therefore, a lower average cost per unit may be achievable than through a lump-sum purchase of units or through non-level purchases of units.
If on a specified DCA transfer date, however, the Separate Account Division from which amounts are being transferred does not have enough value to make the transfers you elected, DCA will not occur. DCA will occur on the next designated DCA transfer date as long as the amount you designated to be transferred is available.
To elect DCA, complete our Dollar Cost Averaging Request form and send it to us for processing. You may not elect DCA for the policy while the Portfolio Rebalancing Program is in effect. We do not charge you to participate in the DCA Program.
We may at any time modify, suspend, or terminate the DCA Program without prior notification.
The Portfolio Rebalancing Program is an automated transfer program that allows you to rebalance your portfolio on a predetermined schedule that you set (annual, semiannual, quarterly, and monthly). The GPA is not included in the Portfolio Rebalancing Program.
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Over time, varying investment performance among the Separate Account Divisions may cause the ratios of your Account Value in those selected Separate Account Divisions to change. The Portfolio Rebalancing Program allows you to choose Separate Account Divisions among which you wish to maintain certain relative proportions of Account Value. At a pre-determined frequency, we will make transfers among all the Separate Account Divisions you select so that the Account Values in the selected Separate Account Divisions match the ratios you set.
In order for portfolio rebalancing to occur, the Account Value in at least one of the selected Funds must vary from your chosen ratio by at least $25.
To elect the Portfolio Rebalancing Program, complete our Portfolio Rebalancing Request form and send it to us for processing. You can also elect the Portfolio Rebalancing Program by telephone, subject to certain restrictions.
You may not elect the automated Portfolio Rebalancing Program while Dollar Cost Averaging is in effect for the policy. We do not charge you to participate in the Portfolio Rebalancing Program. We may at any time modify, suspend, or terminate the Portfolio Rebalancing Program without prior notification. Portfolio rebalancing will not assure you of a profit and will not protect you against loss in declining markets.
If you prefer a one-time portfolio rebalance instead of the automated Portfolio Rebalancing Program, you may complete our administrative form and send it to us for processing. You can also elect unscheduled portfolio rebalancing by telephone, subject to certain restrictions. Unscheduled portfolio rebalancing transactions are effective as of the Valuation Date we receive your request in Good Order at our Administrative Office. If we receive your request in Good Order on a non-Valuation Date or after the end of a Valuation Date, your unscheduled portfolio rebalancing request will be effective as of the next Valuation Date.
Example:
Assume that your initial Net Premium payment is split among four Separate Account Divisions: MML Managed Bond, MML Blend, MML Equity and Fidelity® VIP Contrafund® Portfolio.
Further assume that you have also completed a Portfolio Rebalancing Request form indicating that you want the values in the Separate Account Divisions rebalanced quarterly as follows:
| • | 60% in MML Managed Bond and |
| • | 40% in Fidelity® VIP Contrafund® Portfolio. |
Over the next 2½ months the bond market does very well while the stock market performs poorly. At the end of the first quarter, the MML Managed Bond division represents 80% of the value of the two selected Separate Account Divisions in your Portfolio Rebalancing Program.
On the first day of the next quarter, we will sell all units in the MML Blend and MML Equity divisions using the proceeds to purchase units in the MML Managed Bond (60%) and Fidelity® VIP Contrafund® Portfolio (40%) divisions. In addition, some of your units in the MML Managed Bond division will be sold and the proceeds will be used to purchase additional units in the Fidelity® VIP Contrafund® Portfolio division to bring the ratio of the two investment choices to 60/40 respectively.
How the Value of Your Policy is Calculated
The value of your policy is called its Account Value. The Account Value has two components:
| • | the Variable Account Value; and |
| • | the Fixed Account Value. |
We will calculate your Account Value on each Valuation Date.
Variable Account Value
Transactions in your Separate Account Divisions are all reflected through the purchase and sale of Accumulation Units. An Accumulation Unit is a unit of measure that we use to determine the value in each Separate Account Division. For instance, before we invest your Net Premium payment in a Separate Account Division, we convert your Net Premium payment into Accumulation Units and then purchase an appropriate number of shares in the designated Fund.
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The Variable Account Value is the sum of your values in each of the Separate Account Divisions. It reflects:
| • | Net Premiums allocated to the Separate Account; plus |
| • | transfers to the Separate Account from the GPA; less |
| • | transfers and withdrawals from the Separate Account; less |
| • | surrender charges deducted from the Separate Account due to any decreases in the Selected Face Amount; less |
| • | fees and charges deducted from the Separate Account; adjusted by |
| • | the Net Investment Experience of the Separate Account. |
Net Investment Experience
The Net Investment Experience of the Variable Account Value is reflected in the value of the Accumulation Units.
Every Valuation Date we determine the value of an Accumulation Unit for each of the Separate Account Divisions. Changes in the Accumulation Unit value reflect the investment performance of the Fund as well as deductions for the mortality and expense risk charge, and Fund expenses.
The value of an Accumulation Unit may go up or down from Valuation Date to Valuation Date.
When you make a premium payment, we credit your policy with Accumulation Units. We determine the number of Accumulation Units to credit by dividing the amount of the Net Premium payment allocated to a Separate Account Division by the unit value for that Separate Account Division. When you make a withdrawal, we deduct Accumulation Units representing the withdrawal amount from your policy. We deduct Accumulation Units for insurance and other policy charges.
We calculate the value of an Accumulation Unit for each Separate Account Division at the end of each Valuation Date. Any change in the Accumulation Unit value will be reflected in your policy’s Account Value.
Fixed Account Value
The Fixed Account Value is the accumulation of:
| • | Net Premiums allocated to the GPA; plus |
| • | amounts transferred into the GPA; less |
| • | amounts transferred or withdrawn from the GPA; less |
| • | surrender charges deducted from the GPA due to any decreases in the Selected Face Amount; plus |
| • | fees and charges deducted from the GPA; plus |
| • | interest credited to the GPA. |
Interest on the Fixed Account Value
The Fixed Account Value earns interest at an effective annual rate, credited daily.
For the part of the Fixed Account Value equal to any policy loan, the daily rate we use is the daily equivalent of:
| • | the annual loan interest rate minus the current loan interest rate expense charge; or |
| • | 3%, if greater. |
On each Policy Anniversary, the interest earned on any outstanding loan is applied to the Separate Account Divisions and the GPA according to your current premium allocation instructions.
For the part of the Fixed Account Value in excess of any policy loan, the daily rate we use is the daily equivalent of:
| (1) | the current interest rate we declare; or |
| (2) | the guaranteed interest rate of 3%, if greater. |
The current interest rate may change as often as monthly and becomes effective on the first of each calendar month.
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If the Insured dies while the policy is In Force and we determine that the claim is valid, we will pay the death benefit to the named beneficiary in a lump sum or under one of the payment options below.
The death benefit will be the amount provided by the death benefit option in effect on the date of death, reduced by any outstanding Policy Debt, and any unpaid premium needed to avoid Policy Termination. The death benefit is calculated as of the date of the Insured’s death. The policy also provides additional amounts payable upon the death of the Insured through certain riders that may have been added to your policy with additional charges.
The Minimum Death Benefit for your policy is based on your policy’s Account Value as described below.
While the policy is In Force, you may make changes to the death benefit option and Face Amount. You must pay any premium due before such transaction requests can be processed.
In order to qualify as life insurance under IRC Section 7702, the policy must have a Minimum Death Benefit that is determined by one of two compliance tests. You chose the test when you applied for the policy. You cannot change your choice of test after the policy is issued.
Cash Value Accumulation Test (CVAT)
Under this test, the Minimum Death Benefit on any date is equal to the Account Value on that date multiplied by the death benefit factor for the Insured’s Attained Age on that date. The death benefit factor depends on the Insured’s gender, Attained Age, and risk classification.
Guideline Premium Test
Under this test, the Minimum Death Benefit on any date is equal to the Account Value on that date multiplied by the death benefit factor, but the death benefit factor varies only by the Attained Age of the Insured.
The death benefit factors for the Cash Value Accumulation Test and the Guideline Premium Test are shown in the policy.
Your choice of the Guideline Premium Test or the Cash Value Accumulation Test depended on how you intended to pay premiums. In general, if you intended to pay premiums only in the early Policy Years, the Cash Value Accumulation Test may have been appropriate. If you intended to pay level premiums over a long period of years, the Guideline Premium Test may have been more appropriate. You should have reviewed policy illustrations of both approaches with your registered representative to determine how the policy works under each test, and which was best for you.
When you applied for the policy, you chose one of three death benefit options. These are:
| • | Option 1 – The benefit amount is the greater of: |
| (a) the Face Amount on the date of death; or |
| (b) the Minimum Death Benefit on the date of death. |
| • | Option 2 – The benefit amount is the greater of: |
| (a) the Face Amount plus the Account Value on the date of death; or |
| (b) the Minimum Death Benefit on the date of death. |
| • | Option 3 – The benefit amount is the greater of: |
| (a) the Face Amount, plus the premiums paid (less any premiums refunded) to the date of death; or |
| (b) the Minimum Death Benefit on the date of death. |
You should note that under death benefit option 1, the death benefit amount is not affected by your policy’s investment experience unless the death benefit is based on the Minimum Death Benefit. Under death benefit option 2, the death benefit is a variable death
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benefit. This means that, because the death benefit amount includes the Account Value, it can change from day to day. Your policy’s Account Value will vary due to the investment performance of the Separate Account Divisions in which you have allocated premium or transferred funds. It is also impacted by the deduction of charges and other policy expenses. It is possible that the policy’s Account Value can be zero, which will reduce the overall value of the death benefit. The “Policy Value” section provides more detailed information on how your policy’s Account Value is determined.
Right to Change the Death Benefit Option
After the first Policy Year, you may change the death benefit option while the Insured is living. However, a death benefit option change cannot be processed during a Grace Period, and no change will be permitted beyond the Insured’s Attained Age 85. Although we do not currently restrict the number of times you may change your death benefit option, we reserve the right to limit the number of death benefit option changes in any Policy Year.
You must send a Written Request in Good Order to our Administrative Office to change your death benefit option. We do not currently require evidence of insurability. We do, however, reserve the right to require a written application and evidence of insurability satisfactory to us for any death benefit option change that results in a Face Amount increase.
The death benefit option change will be effective on the Monthly Charge Date that is on or precedes the date we approve the request.
If you change your death benefit option, we will adjust your policy’s Face Amount. The Face Amount adjustment (up or down) will be in the amount needed so that the death benefit immediately before the change will be the same as the death benefit after the change.
Please see Appendix C for examples of how a change in death benefit option may impact the policy’s Face Amount.
The death benefit following a death benefit option change, however, will behave differently based on the new death benefit option in effect. For example, if an Owner changes the death benefit option from option 1 (death benefit = Face Amount) to option 2 (death benefit = Face Amount + Account Value), the death benefit after the change will be based on the Account Value rather than remaining level. The Owner may decide to make this change if the desire is to have a death benefit that will increase if the Account Value grows.
Alternatively, an Owner may change from death benefit option 2 to option 1 if they would like to have a level death benefit following the change. Having a level death benefit (rather than increasing as the Account Value grows) would reduce the policy’s Insurance Risk as the policy’s Account Value increases and, as a result, would reduce the monthly insurance charges. If you elect death benefit option 2, you may choose to change to death benefit option 1 automatically at an Attained Age you select. You may select the Attained Age for this change at the time of application for your policy, or after issue by Written Request. You may also cancel or adjust the timing of the scheduled death benefit option change.
When the Face Amount changes as a result of a change in the death benefit option:
| • | the monthly charges will also change; |
| • | the charge for certain additional benefits may change; |
| • | the premium limitations will change (for additional information please see “Premium Limitations” in the “Premiums” section); and |
| • | the policy surrender charge will not change. |
A change in your death benefit option may also have an impact on your ability to satisfy the Safety Test. Please see the “Safety Test” sub-section in the “Policy Termination and Reinstatement” section for additional information.
You cannot change the death benefit option if, as a result, the Face Amount would be reduced to an amount that is less than the minimum Face Amount.
When We Pay Death Benefit Proceeds
If the policy is In Force and it is determined that the claim is valid, we normally pay the death benefit within seven calendar days after the date we receive due proof of the Insured’s death and all required documents, in Good Order, at our Administrative Office.
Certain situations may delay payment of a death claim. These situations include, but are not limited to, our right to contest the validity of a death claim. We investigate all death claims that occur within the policy’s two-year contestable periods as described below.
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We have the right to contest the validity of the policy for any material misrepresentation of a fact within two years:
| • | after the policy is issued; |
| • | after a Face Amount increase where evidence of insurability is required; or |
| • | after reinstatement of the policy where evidence of insurability is required. |
If the Face Amount increase is the result of a policy change that does not require evidence of insurability such as a conversion from another policy or the exercise of an option on this or another policy, we have the right to contest the validity of the Face Amount increase within two years after that other policy was issued.
We may also investigate death claims beyond the contestable periods. After any two-year contestable period, we generally cannot contest the validity of a policy or a Face Amount increase, except for failure to pay premiums. However, if the application(s) contains a fraudulent misstatement of fact, we may contest at any time, to the extent permitted by law.
We generally determine whether the contested claim is valid within five days after we receive the information from a completed investigation. Since it may take some time to receive the information, payment could be delayed during this period.
We can also delay payment of the death benefit if a portion is based on the Variable Account Value of the policy and the Insured’s date of death is before or during any period when:
| • | it is not reasonably practicable to determine the amount because the NYSE is closed (other than customary week-end and holiday closings); |
| • | trading is restricted by the SEC; |
| • | an emergency exists as a result of which disposal of shares of the Funds is not reasonably practicable or we cannot reasonably value the shares of the Funds; or |
| • | the SEC, by order, permits us to delay payment in order to protect our Owners. |
We will add interest to the death benefit from the date of the Insured’s death to the date of a lump sum payment or the effective date of a payment option payment. Interest will be computed at the rate determined under the interest payment option, or as required by applicable state law. Interest paid on the death benefit is taxable as ordinary income in the year such interest is credited.
Although the death benefit is generally excludable from the income of the beneficiary who receives it, interest on the death benefit is includable in the beneficiary’s income in the year such interest is credited.
We will pay the death benefit in a lump sum or under one of the payment options described more fully below.
If the payment option is a lump sum when the Insured dies, the beneficiary may elect any payment option, with our consent. If the beneficiary does not elect a payment option and you have not elected a payment option during the Insured’s lifetime, the death benefit will be paid as a single lump sum.
The different death benefit payment options are described below. None of these benefits depends upon the performance of the Separate Account or the GPA.
Installments for a Specified Period. Equal monthly payments for any period selected, up to 30 years. The amount of each payment depends on the total amount applied, the period selected, and the monthly income rates we are using when the first payment is due.
Life Income. Equal monthly payments based on the life of a named person. Payments will continue for the lifetime of that person. You can elect income with or without a minimum payment period. This benefit may be increased by the alternate life income provision.
Interest. We will hold any amount applied under this option. We will pay interest on the amount at an effective annual rate determined by us. This rate will not be less than 3%.
Installments of a Specified Amount. Fixed amount payments. The total amount paid during the first year must be at least 6% of the total amount applied. We will credit interest each month on the unpaid balance and add this interest to the unpaid balance. This interest will be an effective annual rate determined by us, but not less than 3%. Payments continue until the balance we hold is reduced to less than the agreed fixed amount. The last payment will be for the balance only.
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Life Income with Payments Guaranteed for Amount Applied. Equal monthly payments based on the life of a named person. We will make payments until the total amount paid equals the amount applied, whether or not the named person lives until all payments have been made. If the named person lives beyond the payments of the total amount applied, we will continue to make monthly payments as long as the named person lives. This benefit may be increased by the alternate life income provision.
Joint Lifetime Income with Reduced Payments to Survivor. Monthly payments based on the lives of two named persons. We will make payments at the initial level while both are living, or for ten years if longer. When one dies (but not before the ten years has elapsed), we will reduce the payments by one-third. Payments will continue at that level for the lifetime of the other. After the ten years has elapsed, payments stop when both named persons have died. This benefit may be increased by the alternate life income provision.
If the Life Income, Life Income with Payments Guaranteed for Amount Applied or Joint Life Income with Reduced Payments to Survivor payment option is elected, the named person(s) can elect to receive an alternate life income instead of receiving income based on the rates shown in the payment option rates tables in your policy. The election must be made at the time the income is to begin. The monthly alternate life income will be at least equal to the monthly income provided by a new single premium immediate annuity (first payment immediate) based on our published rates then in use when the payment option is elected. The alternate life income will not be available if we are not offering new single premium immediate annuities at the time of election.
The minimum amount that can be applied under a payment option is $5,000 per beneficiary. If the periodic payment under any option is less than $50, we reserve the right to make payments at less frequent intervals. Once payments have begun, only the specified amount and interest options may be changed.
All payment option elections must be sent to our Administrative Office in writing. You may change the payment option during the Insured’s lifetime.
Right to Change the Face Amount
You may request an increase or decrease in the Face Amount. If you change your Face Amount, your policy charges, including surrender charges, will change accordingly. If the policy’s Account Value less surrender charges (or Net Surrender Value if there is Policy Debt) cannot keep the policy In Force with the requested change in Face Amount, a premium payment may be required.
We reserve the right to limit the size and number of changes to the Face Amount in any Policy Year.
If you increase or decrease the policy Face Amount, the premium limitations will change (please see “Premium Limitations” in the “Premiums” section for additional information), and your policy may become a MEC under federal tax law. You should consult your tax adviser for information on how a MEC may affect your tax situation. MECs are discussed in the “Federal Income Tax Considerations” section.
Increases in Face Amount
To increase the policy Face Amount, you must send to our Administrative Office a written application and evidence the Insured is still insurable. We treat each Face Amount increase as a separate segment of coverage. An increase in Face Amount cannot be processed during a Grace Period.
An increase in Face Amount may not be:
| • | less than $15,000; or |
| • | made after the anniversary of your policy’s Issue Date nearest the Insured’s 85th birthday. |
If the Account Value (or the Net Surrender Value if there is Policy Debt) is insufficient to continue the changed policy In Force for three months at the new monthly charges and interest, we may require a premium payment sufficient to increase the Account Value to such an amount.
Additional insurance charges and face amount charges will apply for each Face Amount increase you elect. Additionally, a separate surrender charge schedule will apply to the amount of the increase. Generally, these surrender charges will apply during the first 14 years of each segment of coverage.
Any increase elected under any insurability protection type of rider will be effective as directed in the rider. Any other Face Amount increases will be effective on the Monthly Charge Date that is on, or precedes, the date we approve the application for the increase.
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Decreases in Face Amount
You may decrease the Face Amount any time after the first Policy Year or one year after a Face Amount increase. You must send a Written Request in Good Order to our Administrative Office. When we receive a Written Request for a decrease in Face Amount from the Owner, we will provide the Owner with a written notice that specifies the surrender charges to be assessed at the time of the decrease. If the Owner does not withdraw the request for the decrease in Face Amount within ten days from the date of the written notice, we will process the decrease in Face Amount and assess any surrender charges that may apply. If we determine that the policy will become a MEC, then the decrease will not be processed until a MEC Notice and Acknowledgment form is received in Good Order at our Administrative Office.
If you decrease the policy Face Amount, we cancel all or part of your Face Amount segments, and a partial surrender charge may apply. Surrender charges that apply when you decrease the policy’s Face Amount are discussed in “Surrender Charges for Decreases in Face Amount” in the “Transaction Fees” section.
A decrease will reduce the Face Amount in the following order:
| (1) | the Face Amount of the most recent increase; then |
| (2) | the Face Amounts of the next most recent increases successively; and last |
| (3) | the Initial Face Amount. |
You may not decrease the Face Amount if the decrease would result in a Face Amount of less than the minimum Face Amount ($50,000).
Face Amount decreases will be effective on the Monthly Charge Date that is on, or precedes, the date we receive (in Good Order at our Administrative Office) any applicable request for the decrease. A Face Amount decrease will reduce your policy’s Account Value by the amount of any applicable partial surrender charge. The remaining surrender charge will be reduced by the amount of the partial surrender charge assessed when the Face Amount is decreased. If the policy’s Account Value (or Net Surrender Value if there is Policy Debt) cannot keep the policy In Force, a premium payment may be required.
Decreases in the policy’s Face Amount may have adverse tax consequences.
If the Insured dies by suicide, while sane or insane, and the policy is In Force, the policy will terminate.
| • | If the death occurs within two years after the Issue Date, we will refund the sum of all premiums paid, less any withdrawals and any Policy Debt. |
| • | If the death occurs within two years after reinstatement of the policy, we will refund the sum of the premium paid to reinstate and all premiums paid thereafter, less any premiums returned, and withdrawals after reinstatement and any Policy Debt at the time of death. |
| • | If death occurs within two years after the effective date of an increase in Face Amount (but at least two years after the Issue Date or any reinstatement), we will refund the sum of the monthly charges attributed to the increase. However, if a refund as described in either of the two preceding paragraphs is payable, there will be no additional payment for the increase. |
Example:
Assume a policy is issued with a $500,000 Face Amount under death benefit option 1. In Policy Year 4, the owner applies for a $250,000 Face Amount increase, which is approved. If the Insured commits suicide within two years of the increase, the benefit payable to the beneficiaries is equal to the original $500,000 death benefit, plus an additional payment equal to the monthly charges that were deducted from the Account Value for the increase segment of $250,000.
We will pay the full death benefit, less any amounts withdrawn and less any Policy Debt, if the Insured commits suicide two years or more after the Issue Date, and there has been no reinstatement or increase in the Face Amount within those two years.
For policies issued in Colorado, Missouri, Minnesota, and North Dakota, all references in the provision to “two years” should be replaced with “one year.”
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If the Insured’s date of birth or gender was misstated in the policy application or the policy has been issued incorrectly, we may adjust the Face Amount. The adjustment will reflect the amount provided by the most recent monthly insurance charges using the correct age and gender. If the adjustment is made while the Insured is living, monthly charges after the adjustment will be based on the correct age and gender.
Other Benefits Available Under the Policy
In addition to the standard death benefit(s) associated with your policy, other standard and/or optional benefits may be available to you. You can obtain additional benefits if you request them and/or qualify for them. We provide certain additional benefits by rider or endorsement. The cost of each rider is generally deducted as part of the monthly charges. Some riders do not result in monthly charges, but do require a fee to exercise the riders. Adding or removing a rider for which there is a monthly charge may impact the premium limitations on your policy. For additional information, please see “Premium Limitations” in the “Premiums” section. If you added a rider for which we charge, you may cancel it at any time upon Written Request. You may not, however, add or remove a rider during a Grace Period. You must pay any premium due before such transaction requests can be processed. Having one or more riders that have monthly charges will increase the overall cost of your policy. The availability of certain riders is subject to state availability and policy Issue Date.
Please note that the Disability Benefit and the Waiver of Monthly Charges Riders may not be used in combination. If you have been issued one of these two riders, you may not terminate the rider and choose the other.
Note: The following riders can no longer be added to your policy:
| • | Accelerated Death Benefit Rider for Terminal Illness |
| • | Disability Benefit Rider |
| • | Guaranteed Insurability Rider |
| • | Other Insured Rider |
| • | Substitute of Insured Rider |
| • | Waiver of Monthly Charges Rider |
We also offer two automated transfer programs as additional benefits – Portfolio Rebalancing and Dollar Cost Averaging (DCA). Please note that you cannot select both the Portfolio Rebalancing Program and the DCA Program at the same time.
The following table summarizes the information about the additional benefits available under the policy. Information about the fees associated with each benefit included in the table may be found in the Fee Table.
|
Name of Benefit |
Purpose |
Is this Benefit |
Brief Description of Restrictions/Limitations |
|
Accelerated Death Benefit Rider for Terminal Illness This rider is no longer issued. |
Advances portion of death benefit upon Insured being terminally ill and not expected to live more than 12 months |
Standard |
•
Eligible payment amount (Eligible Amount) does not include: any amount of death benefit equal to the Account Value; amounts under riders that do not provide level or increasing coverage for at least two years after acceleration date; and the amount payable upon the death of someone other than the Insured under the policy, if applicable. •
Minimum payment is $25,000. •
Maximum payment is lesser of 75% of Eligible Amount and $250,000. •
Death benefit reduced by accelerated amount. |
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|
Name of Benefit |
Purpose |
Is this Benefit |
Brief Description of Restrictions/Limitations |
|
Disability Benefit Rider This rider is no longer issued. |
Credits specified amount to Account Value and waives monthly charges on specific Monthly Charge Dates while Insured is totally and continuously disabled (as defined in rider) |
Optional |
•
Evidence of insurability required to add rider. •
Monthly credit of specified amount ends day before Insured’s Attained Age 65. •
Waiver of monthly charges ends day before Insured’s Attained Age 65 if total disability began at Insured’s Attained Age 60 or older. •
Rider not available if Waiver of Monthly Charges Rider added to policy. |
|
Guaranteed Insurability Rider This rider is no longer issued. |
Provides right to increase Face Amount or purchase new policy without evidence of insurability on specified dates |
Optional |
•
Evidence of insurability required to add rider. •
Requires premium payment to increase Face Amount or purchase new policy. •
Option amount limited to lesser of $100,000 or the Face Amount of the base policy on the effective date of an increase. |
|
Other Insured Rider This rider is no longer issued. |
Provides level term insurance on the life of up to two Insureds, one of which is the base policy Insured and the other is either the base policy Insured’s spouse or child. |
Optional |
•
Rider may be converted while the Insured is living or upon the death of the Insured prior to the Insured’s Attained Age 70. •
Conversion on death of Insured must occur with 90 days of date we receive proof of Insured’s death. •
The cost of the new policy will be based on other Insured’s Attained Age at time of conversion. |
|
Substitute of Insured Rider This rider is no longer issued. |
Allows for substitution of Insured |
Standard |
•
Owner must have insurable interest in life of substitute Insured. •
Both Insured and substitute Insured must be alive on date of substitution. •
Age of substitute Insured on birthday nearest Policy Date cannot be less than the minimum age or greater than maximum age allowed. •
Evidence of insurability of substitute Insured required. •
Payment of premium required if needed to avoid termination. |
|
Waiver of Monthly Charges Rider This rider is no longer issued. |
Waives monthly charges while Insured is totally and continuously disabled (as defined in rider) |
Optional |
•
Evidence of insurability required to add rider. •
Rider benefit ends day before Insured’s Attained Age 65, if Total Disability began when Insured was Attained Age 60 or older. •
Rider not available if Disability Benefit Rider added to policy. |
|
Adjustment to Surrender Charges Endorsement (for internal replacements) |
Waives surrender charges in exchange of policy for non-variable life policy offered by MassMutual or its subsidiary |
Standard |
•
Evidence of insurability required. •
C.M. Life reserves right to require repayment of loans and loan interest. |
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|
Name of Benefit |
Purpose |
Is this Benefit |
Brief Description of Restrictions/Limitations |
|
Adjustment to Surrender Charges Endorsement |
Waives surrender charges if policy fully surrendered |
Optional |
•
Evidence of insurability required to add endorsement. •
Not available for policies issued for personal use or business cases if annual premium less than $100,000. Other conditions that must be met: •
Policy is In Force; •
Surrender occurs after first five Policy Years; •
No loans or withdrawals taken under policy; and •
Policy not assigned after issue. |
|
Portfolio Rebalancing Program |
Automatically rebalances Separate Account Divisions to maintain original percent allocation of Account Value |
Optional |
•
Cannot use with Dollar Cost Averaging Program. |
|
Dollar Cost Averaging Program |
Automatically transfers a specific amount of Account Value from a single Separate Account Division to other divisions or the GPA, at set intervals |
Optional |
•
Cannot use with the Portfolio Rebalancing Program. |
Accelerated Death Benefit Rider for Terminal Illness – This Rider Is No Longer Issued
This rider advances a portion of the policy’s death benefit to the Owner when we receive proof, satisfactory to us, that the Insured is terminally ill and is not expected to live more than 12 months. If the death benefit is accelerated under this rider, the policy values, the death benefit, cash values, and loan values under this policy will be reduced.
Benefits under the rider may be taxable. The Owner should seek tax advice prior to requesting an accelerated death benefit payment.
For the purposes of this rider, terminal illness is a medical condition that:
| • | is first diagnosed by a Legally Qualified Physician; and |
| • | with reasonable medical certainty, will result in the death of the Insured within 12 months from the date the Legally Qualified Physician certifies the diagnosis; and |
| • | is not curable by any means available to the medical profession. |
We must receive the following items before an accelerated benefit can be paid:
| • | Owner’s Written Request for payment of an accelerated death benefit under the policy; |
| • | Insured’s written authorization to release medical records to us; |
| • | Written consent to this request of any assignee and any irrevocable beneficiary under the policy; and |
| • | Written certification from a Legally Qualified Physician that the Insured has a terminal illness, as defined above. |
The amount of the death benefit under the policy that can be considered for acceleration is determined as of the acceleration date. The acceleration date is the first date on which all the requirements for acceleration, except any confirming examination that we may require, have been met.
The amount eligible for acceleration under the rider (Eligible Amount) includes:
| • | the amount equal to the excess of the base policy death benefit over the Account Value; and |
| • | the amount payable upon death of the Insured under any life insurance rider included with the policy, if that rider provides level or increasing coverage on the life of the Insured for at least two years after the acceleration date. |
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The Eligible Amount does not include:
| • | the amount payable upon the death of the Insured under any life insurance rider that does not provide level or increasing coverage for at least two years after the acceleration date; and |
| • | the amount payable upon the death of someone other than the Insured under the policy, if applicable. |
All other riders are excluded from the Eligible Amount.
The Owner may accelerate any portion of the Eligible Amount subject to the following limitations:
| • | the minimum amount that may be accelerated is $25,000; and |
| • | the maximum amount that may be accelerated is equal to the lesser of 75% of the Eligible Amount or $250,000 minus the total amount accelerated under all other policies issued by us or any of our affiliates. |
There is no premium or cost of insurance charge for this rider. However, when you exercise benefits under this rider, your death benefit will be reduced by an amount greater than the terminal illness benefit payment. The terminal illness benefit payment will be reduced by:
| • | a fee of not more than $250; and |
| • | interest at the annual interest rate we have declared for policies in this class. |
In return for the advance payment, a lien is placed on the policy equal to the amount of benefit accelerated. Interest is not charged on the lien. The Owner may not voluntarily repay all or any portion of the lien. However, the amount of the lien will be deducted from the amount of payment under the policy upon the death of the Insured.
Payment of the terminal illness benefit will be made to the Owner in a single sum, unless the payment has been assigned or designated by the Owner. However, we will not make the payment if we first receive due proof of the Insured’s death; in this case, we will instead pay the death benefit as if no request has been received under the rider.
After the accelerated benefit payment is made, the policy will remain In Force, and premiums and charges will continue in accordance with the policy provisions.
The rider terminates on the earliest of:
| • | on the date the Owner makes a Written Request to terminate (Note: The Owner may choose to terminate the rider if he or she wishes to guarantee that the policy’s death benefit is paid to the named beneficiaries rather than to the Owner. However, if the rider is terminated at the Owner’s request, it cannot be reinstated.); |
| • | on the date an accelerated benefit payment is made; |
| • | on the date the policy terminates, for any reason; |
| • | on the date the policy matures; |
| • | on the date the base policy is changed to a different policy on which the rider is not available; or |
| • | two years before coverage under the policy is scheduled to terminate. |
Where this rider is available, it is included automatically with the policy at no charge at the time the policy is issued.
An example illustrating the operation of this rider is set forth in Appendix C.
Disability Benefit Rider – This Rider Is No Longer Issued
This rider provides a disability benefit while the Insured is totally and continuously disabled as defined in the rider. The rider provides the following monthly benefits if the Insured becomes totally and continuously disabled.
| • | On specific Monthly Charge Dates we will credit an amount to the Account Value equal to the specified benefit amount shown in the policy’s specifications for this rider. This amount will be treated as a Net Premium. |
| • | We also will waive the monthly charges due for this policy on specific Monthly Charge Dates. |
The benefits will be provided after the Insured has been totally disabled for four continuous months and all conditions of the rider have been met.
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Total Disability is defined as an incapacity of the Insured that:
| • | is caused by sickness or injury; and |
| • | requires the Insured to be under a doctor’s care; and |
| • | begins while this rider is In Force; and |
| • | for the first 24 months of any period of Total Disability, prevents the Insured from performing the substantial and material duties of the Insured’s occupation; and |
| • | after Total Disability has continued for 24 months, prevents the Insured from engaging in any occupation the Insured is or may become qualified to perform. |
The benefits will end when any of the following occurs:
| • | the Insured is no longer totally disabled; or |
| • | satisfactory proof of continued Total Disability is not given to us as required; or |
| • | the Insured refuses or fails to have an examination we require; or |
| • | for the specified monthly benefit, the day before the Insured’s Attained Age becomes 65; and |
| • | for the waiver of monthly charges, the day before the Insured’s Attained Age becomes 65 if Total Disability began when the Insured’s Attained Age was 60 or older. |
If Total Disability began before the Insured’s Attained Age 60 and continues to Attained Age 65, the rider benefit after Attained Age 65 will be the monthly charges for this policy.
Proof of claim must be received at our Administrative Office within one year after the notice of claim was given to us. However, if it was not reasonably possible to give us proof of claim on time, the delay will not reduce the benefit if proof is given as soon as reasonably possible.
The Owner may terminate this rider at any time upon Written Request. If the rider is terminated at the Owner’s request, this rider cannot be reinstated. If not terminated at the Owner’s request, this rider will terminate automatically at the Insured’s Attained Age 65.
There is a monthly charge for this rider, which is the sum of the charge for the specified benefit amount and the charge for the waiver of monthly charges. This charge is based on the Insured’s Attained Age and gender, and on the benefits provided.
| • | The specified benefit amount charge each month is equal to the specified monthly benefit multiplied by the specified benefit charge rate for the Insured’s Attained Age. |
| • | The waiver charge each month is equal to the sum of the monthly charges for the month, excluding the charge for this rider, multiplied by the waiver charge rate for the Insured’s Attained Age. |
The monthly charge is deducted from the Account Value on each Monthly Charge Date prior to the rider’s termination.
The specified benefit charge rates and waiver charge rates are shown in the policy’s specifications pages.
The example below shows the operation of this rider.
| • | The specified monthly benefit is $500. |
| • | The Insured is Attained Age 55. |
| • | The Insured has been totally and permanently disabled for at least four months. |
| • | Account Value on the Monthly Charge Date prior to the deduction of monthly charges is $100,000. |
| • | Total monthly charges are $400. |
| • | The rider waives the monthly charges and credits the specified monthly benefit to the Account Value. The impact to the Account Value is as follows: |
|
Starting Account Value |
$100,000 |
||
|
Rider Benefit |
+ $500 |
||
|
Monthly Charges |
- $0 |
||
|
Ending Account Value |
$100,500 |
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Guaranteed Insurability Rider – This Rider Is No Longer Issued
This rider provides the right to increase the Face Amount of the policy without evidence of insurability on certain option dates as defined in the rider.
A written application is required and any premium payment needed for a Face Amount increase must be received at our Administrative Office by the end of the option period.
There are two types of option periods, regular and substitute. Regular option periods coincide with the Policy Anniversary dates nearest the Insured’s 25th, 28th, 31st, 34th, 37th, 40th, 43rd, and 46th birthday. Substitute option dates occur 91 days after the Insured’s marriage, the birth of the Insured’s child or adoption of a child by the Insured. In the event of multiple births, the maximum increase will be the benefit amount listed in the policy’s specifications pages multiplied by the number of children born (up to a maximum of three).
A substitute option date can be exercised only if there is a subsequent regular option date. If an increase is elected during a substitute option period, the right to increase again during the subsequent regular option period is lost. Failure to exercise an option date does not impact your ability to exercise a future option.
The rider option amount is subject to a maximum limit of $100,000, or, if less, the Face Amount of the base policy on the effective date of an increase in the rider option amount.
The rider terminates:
| • | when the Owner makes a Written Request to terminate (Note: If the rider is terminated at the Owner’s request, it cannot be reinstated.); |
| • | after the last regular option date as defined in the rider; |
| • | following election of the last Face Amount increase that may be elected under the rider; |
| • | a decrease in the policy’s Face Amount; |
| • | if the policy is changed to another policy under which this rider is not available; or |
| • | if the policy terminates. |
There is a monthly charge for this rider. It is a rate per $1,000, of rider option amount, which is deducted from the Account Value on each Monthly Charge Date prior to the rider’s termination. This rider also has a rider expense premium associated with it. The monthly charge rate per $1,000 and the rider expense premiums are shown in the policy’s specifications pages.
The example below shows the operation of this rider.
Policy details:
|
Sex |
Male |
|
Risk Class |
Non-Tobacco |
|
Issue Age |
30 |
|
Attained Age |
37 |
|
Face Amount |
$250,000 |
|
Rider Option Amount |
$50,000 |
On the Policy Anniversary:
| • | The Face Amount can be increased by the rider option amount, from $250,000 to $300,000 because the Insured has reached Attained Age 37 (which is a regular option date) on this Policy Anniversary. |
| • | The increase segment gets the same risk class as the base policy (Non-Tobacco). |
| • | Evidence of insurability is not required for this Face Amount increase. |
| • | Monthly charges going forward will be based on the total Face Amount of $300,000 and will be higher. |
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Other Insured Rider – This Rider Is No Longer Issued
This rider provides level term insurance on the life of up to two Insureds, one of which is the Insured named in the base policy. The other Insured must be either the base policy Insured’s spouse or child. The coverage for the Insured under the rider is convertible for a limited amount of time.
While the base policy Insured is living and prior to the other Insured’s Attained Age 70, the rider may be fully or partially converted to a flexible premium variable life insurance policy offered at the time of conversion. The cost for the new policy will be based on the other Insured’s Attained Age at the time of conversion. No evidence of insurability is required to convert the rider coverage.
If the Insured under the rider is not the base policy Insured, the rider may be converted upon the death of the base policy Insured (but only before Attained Age 70 of the other Insured). Conversion upon the death of the base policy Insured may be made at any time up to 90 days of the date we receive due proof of the base policy Insured’s death.
The rider will terminate on the rider expiration date listed in the rider specifications for the other Insured. This rider will also end if any of the following occurs:
| • | expiration of the 90-day conversion period upon death of the base policy Insured; |
| • | the end of the Grace Period for any unpaid premium under the policy; |
| • | termination of the policy for any other reason; |
| • | change of the policy to a different policy on which this rider is not available; or |
| • | conversion of the remaining rider face amount under this rider. |
You may request an increase or decrease in the Face Amount of the rider. If you change the Face Amount, your policy charges will change accordingly. There is an additional charge for this rider that varies based on the individual characteristics of the Insured.
The example below shows the impact of making a claim under this rider.
Policy details for Primary Insured:
|
Sex |
Female |
|
Risk Class |
Non-Tobacco |
|
Issue Age |
40 |
|
Attained Age |
40 |
|
Face Amount |
$250,000 |
Policy details for Other Insured:
|
Sex |
Male |
|
Risk Class |
Non-Tobacco |
|
Issue Age |
32 |
|
Attained Age |
42 |
|
Rider Face Amount |
$100,000 |
When the Other Insured dies:
| • | The rider face amount of $100,000 is paid to the beneficiary. |
| • | The monthly rider charge for the Other Insured Rider going forward will cease. |
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Substitute of Insured Rider – This Rider Is No Longer Issued
This rider allows you to substitute a new Insured in place of the current Insured under the policy.
A substitute of the Insured is allowed if the policy is In Force, and all of the following conditions are met as of the date of substitution:
| • | the Owner has an insurable interest in the life of the substitute Insured; |
| • | the substitute Insured must have been born on or before the Policy Date; and |
| • | the substitute Insured must not be over 80 years of age on the birthday nearest the date of substitution; and |
| • | the age of the substitute Insured on the birthday nearest the Policy Date must not be less than the minimum age, or greater than the maximum age, allowed by us for the policy on the Policy Date. |
Before the submission can become effective, we require:
| • | a written application for substitution, received by us at our Administration Office; |
| • | evidence of insurability of the substitute Insured that is satisfactory to us and; |
| • | payment to us of any premium required to avoid termination under the Grace Period and Termination provision of the policy. |
All monthly charges after the substitution of the Insured will be based on the life and risk classification of the substitute Insured.
The rider will continue In Force to, but not including, the Policy Anniversary date on which the current Insured’s Attained Age becomes 75. However, it will end automatically before that date at the time any one of the following occurs:
| • | change of the policy to a different policy under which the rider is not available; |
| • | a substitution of the Insured under the terms of the rider; or |
| • | termination of the policy for any reason. |
Substituting a new Insured under the policy may have adverse tax consequences. Please consult your tax adviser before you make your decision.
This rider is available for issue ages 0-74. It is included automatically at no charge at the time the policy is issued.
An example of the operation of the Substitute of Insured Rider is set forth in Appendix D.
Waiver of Monthly Charges Rider – This Rider Is No Longer Issued
Under this rider, we will waive the monthly charges due for the policy while the Insured is totally and continuously disabled, as defined in the rider, for four months or longer. We will not return any premiums paid; however, we will adjust the Account Value according to the terms of the rider.
Total Disability is defined as an incapacity of the Insured that:
| • | is caused by sickness or injury; and |
| • | requires the Insured to be under a doctor’s care; and |
| • | begins while this rider is In Force; and |
| • | for the first 24 months of any period of Total Disability, prevents the Insured from performing the substantial and material duties of the Insured’s occupation; and |
| • | after Total Disability has continued for 24 months, prevents the Insured from engaging in any occupation the Insured is or may become qualified to perform. |
The benefits will end when any of the following occurs:
| • | the Insured is no longer totally disabled; or |
| • | satisfactory proof of continued Total Disability is not given to us as required; or |
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| • | the Insured refuses or fails to have an examination we require; or |
| • | the day before the Insured’s Attained Age becomes 65, if Total Disability began when the Insured was Attained Age 60 or older. |
Proof of claim must be received at our Administrative Office within one year after the notice of claim was given to us. However, if it was not reasonably possible to give us notice and/or proof of claim on time, the delay will not reduce the benefit if notice and/or proof are given as soon as reasonably possible.
The Owner may terminate this rider at any time upon Written Request. If the rider is terminated at the Owner’s request, it cannot be reinstated. If not terminated at the Owner’s request, the rider will continue In Force to, but not including, the Policy Anniversary date on which the Insured’s Attained Age becomes 65.
There is a monthly charge for this rider. This charge is based on the Insured’s Attained Age and gender. The charge each month is equal to the sum of the monthly charges for the month, excluding the charge for this rider, multiplied by the waiver charge rate for the Insured’s Attained Age. The charge is deducted from the Account Value on each Monthly Charge Date prior to the rider’s termination.
The waiver charge rates are shown in the policy’s specifications pages.
The example below shows the operation of this rider.
| • | The Insured is Attained Age 55. |
| • | The Insured has been totally and permanently disabled for at least four months. |
| • | Account Value on Monthly Charge Date prior to the deduction of monthly charges is $100,000. |
| • | Total monthly charges are $400. |
| • | The rider waives the monthly charges, so the Account Value remains at $100,000. |
Adjustment to Surrender Charges Endorsement (for internal replacements)
This endorsement allows the Company to waive surrender charges if an Owner wishes to exchange this policy for a qualifying non-variable life insurance policy offered by MassMutual or one of its subsidiaries provided the following conditions are met:
| • | On the date of the exchange, the Net Surrender Value of the new policy must be less than or equal to the Net Surrender Value of the replaced policy; |
| • | The Face Amount of the new policy must be equal to or greater than the Face Amount of the replaced policy; and |
| • | The entire value of the replaced policy must be put into the new policy. |
This endorsement is included automatically with the policy at no charge at the time the policy is issued.
We require a written application and evidence of insurability satisfactory to us for the new policy. There is no guarantee the new policy will be issued. We reserve the right to require repayment of any loans and loan interest.
We have the right to modify, suspend, or terminate any replacement program at any time without prior notification. This right does not apply to policies to which the endorsement has already been added.
Adjustment to Surrender Charges Endorsement
This endorsement allows the Company to waive surrender charges if an Owner wishes to surrender this policy in full provided the following conditions are met:
| • | The policy is In Force; |
| • | The policy is surrendered during the first five Policy Years (including surrenders under settlement options); |
| • | No loans have been taken against the policy; |
| • | No withdrawals have been taken from the policy; and |
| • | The policy has not been assigned after issue. |
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We require a written application and evidence of insurability satisfactory to us to attach this endorsement to the policy. We also charge a one-time fee of $150 to add this endorsement. The endorsement is available for business cases where the annual policy premium for the case equals or exceeds $100,000. The endorsement is not available on policies intended for personal use or where the annual policy premium for the case is less than $100,000. A case is defined as one or more policies with a single business owner. This endorsement is only available for attachment at the time the policy is issued.
Generally, you can exchange a life insurance policy for another in a tax-free exchange under Section 1035 of the Internal Revenue Code. Before making such an exchange, you should compare the features, fees, and risks of both policies to determine whether the purchase of the new policy is in your best interest. Remember that if you replace a policy with another policy, you might have to pay a surrender charge on the surrendered policy, and there may be new surrender charges for the new policy. In addition, other charges may be higher (or lower), and the benefits may be different. You should talk to your financial professional or tax adviser.
Accessing the Money in Your Policy
After the first Policy Year, the maximum amount you may withdraw is 75% of the current Net Surrender Value. This amount is referred to as the maximum partial withdrawal. The minimum amount you may withdraw is $100. We do not currently charge a withdrawal fee or surrender charge for a withdrawal.
You can make a withdrawal by sending us a Written Request in Good Order on our partial withdrawal request form.
You must state in your request form the dollar amount and corresponding Separate Account Division(s) from which you want the withdrawal made. If you choose to withdraw an amount from the GPA, it may not exceed the non-loaned Account Value in the GPA. If you request a maximum partial withdrawal, the amount of the withdrawal will be deducted proportionately from the available Separate Account Divisions and the non-loaned Account Value in the GPA.
A withdrawal will reduce your policy’s Account Value by the amount withdrawn. If the policy’s Account Value is reduced to a point where it cannot meet a monthly deduction, your policy may terminate. A withdrawal may also: 1) reduce your policy’s Face Amount; 2) have adverse tax consequences; and 3) change the premium limitations. For more information on tax implications, please see the “Federal Income Tax Considerations” section and for more information on premium limitations, please see “Premium Limitations” in the “Premiums” section.
Example:
Assume Death Benefit Option 1 is in effect and prior to the withdrawal the policy has a Face Amount of $600,000 and an Account Value of $120,000. If you make a withdrawal of $30,000, the Account Value will be reduced to $90,000 and the Face Amount will be reduced to $570,000. The withdrawal payment will be $30,000.
If your policy’s Face Amount is decreased because of a withdrawal, surrender charges will not apply. We may reduce the Face Amount of your policy unless you have chosen death benefit option 2 or we receive evidence of insurability satisfactory to us. The amount of the reduction will be the amount of the withdrawal.
There is one exception:
| If the death benefit provided by the death benefit option immediately before the withdrawal is equal to the Minimum Death Benefit, either the Face Amount reduction will be limited or we will not reduce the Face Amount. |
| We will not reduce the Face Amount if the death benefit immediately after the withdrawal would be the new Minimum Death Benefit (based on the reduced Account Value). Otherwise, the Face Amount reduction will be based on a formula. |
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| The formula considers the smallest withdrawal amount that would bring the Minimum Death Benefit below the death benefit provided by the death benefit option. The formula reduces the Face Amount by the excess of the requested withdrawal amount over this smallest withdrawal amount. (Minimum Death Benefit, death benefit, and death benefit options are explained in the “Death Benefit” section.) |
We will not allow a withdrawal if it would result in a reduction of the Face Amount to less than the minimum Face Amount.
Withdrawal requests where evidence of insurability is not required will be effective on the Valuation Date we receive the Written Request in Good Order at our Administrative Office. Withdrawal requests where evidence of insurability is required will be effective on the Valuation Date we approve the evidence of insurability application provided that the remainder of the withdrawal request is in Good Order on that date. Withdrawal requests determined to be in Good Order on a non-Valuation Date or after the end of a Valuation Date, will be effective as of the next Valuation Date.
If a withdrawal would cause the policy to become a MEC, a MEC Notice and Acknowledgement Form will be required before the withdrawal will be processed. For more information on MECs, please see the “Federal Income Tax Considerations” section.
We will normally pay any withdrawal amounts within seven calendar days of the withdrawal effective date unless we are required to suspend or postpone withdrawal payments. Please see “Other Policy Rights and Limitations” in the “Other Information” section for additional information.
You may surrender your policy to us at any time while the policy is In Force. We will pay you its Net Surrender Value. To surrender your policy, you must submit a completed surrender form and any other forms we may require.
The surrender will be effective on the Valuation Date we receive all required, fully completed forms in Good Order at our Administrative Office. If the surrender involves an exchange or transfer of assets to a policy issued by another financial institution or insurance company (not MassMutual or any of its subsidiaries), we also will require a completed absolute assignment form and any state mandated replacement paperwork. If we receive your request in Good Order on a non-Valuation Date or after the end of a Valuation Date, your surrender request will be effective as of the next Valuation Date.
We will normally pay any surrender amounts within seven calendar days of the surrender effective date, unless we are required to suspend or postpone surrender payments. Please see “Other Policy Rights and Limitations” in the “Other Information” section for additional information.
The policy terminates as of the effective date of the surrender and cannot be reinstated unless required by law. Surrendering the policy may result in adverse tax consequences. These tax consequences are discussed in the “Federal Income Tax Considerations” section.
You may take a loan from the policy once the Account Value exceeds the total of any surrender charges. We charge interest on policy loans that is added to the Policy Debt. We refer to all outstanding loans plus accrued interest as Policy Debt. You may repay all or part of your Policy Debt, but you are not required to do so.
We currently allow loans in all Policy Years, however we reserved the right to prohibit loans in the first Policy Year. The maximum loan amount allowed at any time is calculated as follows:
| • | 90% of: |
| (A) | the policy’s current Account Value, minus |
| (B) | any current applicable surrender charge, |
| • | less any existing Policy Debt |
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Taking a loan from your policy has several risks: (1) it may increase the risk that your policy will terminate; (2) it will have a permanent effect on your policy’s Net Surrender Value; (3) it may increase the amount of premium needed to keep the policy In Force; (4) it will reduce the death benefit proceeds; and (5) it may have adverse tax consequences.
The risks that can result from taking a policy loan may be reduced if you repay Policy Debt. The tax consequences of loans are discussed in the “Federal Income Tax Considerations” section.
You may take a loan by completing a loan request form and sending it to our Administrative Office, or by other means we authorize, subject to certain restrictions. You must assign the policy to us as collateral for the loan.
Once we have processed the loan request and deducted the proportionate amounts from the Separate Account Divisions and/or the GPA, we consider the loan effective and outstanding. If, after we process the loan request, you decide not to cash the check, you may submit a Written Request to our Administrative Office to repay the loan amount. The loan repayment will be effective on the Valuation Date the Written Request is received in Good Order at our Administrative Office. Loan interest begins to accrue as soon as the loan is effective. Therefore, loan interest will accrue even if the loan check is not cashed. Please see “Loan Interest Charged” below for additional information.
Loans will be effective on the Valuation Date we receive your loan request form and all other required documents in Good Order at our Administrative Office. If we receive your request in Good Order on a non-Valuation Date or after the end of a Valuation Date, your loan request will be effective as of the next Valuation Date.
On the effective date of the loan, we deduct proportionate amounts from the Separate Account Divisions and/or the GPA (excluding any outstanding loans) and transfer the resulting dollar amounts to the loaned portion of the GPA. We will normally pay any loan amounts within seven calendar days of the loan effective date, unless we are required to suspend or postpone loan amounts. Please see the “Other Policy Rights and Limitations” sub-section in the “Other Information” section for additional information.
Interest Credited on the Loaned Value
When you take a loan, we transfer an amount equal to the loan to the loaned portion of the GPA. This amount earns interest at a rate equal to the greater of:
| • | 3%; or |
| • | the loan interest rate less the current loan interest rate expense charge. |
On each Policy Anniversary, the interest rate earned on any outstanding loan is applied to the Separate Account Divisions according to the values in them at that time. If you have no value in the Separate Account at that time, then the interest earned on any outstanding loan remains in the GPA.
At the time you applied for the policy, you selected either a fixed loan interest rate of 5% or (in all jurisdictions except Arkansas) an adjustable loan rate.
Each year we will set the adjustable rate that will apply for the next Policy Year. The maximum loan rate is based on the Monthly Average Corporate yield on seasoned corporate bonds as published by Moody’s Investors Service, Inc. If this Average is no longer published, we will use a similar average as approved by the insurance department of the state in which your contract was issued.
The maximum rate is the greater of:
| • | The published monthly average for the calendar month ending two months before the Policy Year begins; or |
| • | 4% |
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If the maximum rate is less than 0.5% higher than the rate in effect for the previous year, we will not increase the rate. If the maximum rate is at least 0.5% lower than the rate in effect for the previous year, we will decrease the rate.
Interest on policy loans is not due in advance. The interest accrues daily and becomes part of the Policy Debt as it accrues. Interest is due on each Policy Anniversary date. If interest is not paid when due, it will be added to the loan and will bear interest at the loan rate. The interest is deducted proportionately from the Separate Account Divisions and the GPA according to the then current value in those Separate Account Divisions and the GPA and added to the loan. If the policy’s Account Value cannot cover the loan interest due, the policy may lapse. Please see the “Policy Termination and Reinstatement” section.
Effect of a Loan on the Values of the Policy
A policy loan negatively affects policy values because we reduce the death benefit and Net Surrender Value by the amount of the Policy Debt.
Also, a policy loan, whether or not repaid, has a permanent effect on your policy’s Net Surrender Value because, as long as a loan is outstanding, a portion of the Account Value equal to the loan is invested in the GPA. This amount does not participate in the investment performance of the Separate Account or receive the current interest rates credited to the non-loaned portion of the GPA. The longer a loan is outstanding, the greater the effect on your Net Surrender Value will be. In addition, if you do not repay a loan, your outstanding Policy Debt will reduce the death benefit and Net Surrender Value that might otherwise be payable.
Whenever you reach your Policy Debt Limit, your policy is at risk of terminating, even if the Safety Test is met. Your Policy Debt Limit is reached when total Policy Debt exceeds the Account Value less surrender charges. If this happens, we will notify you in writing. The “Policy Termination and Reinstatement” section explains more completely what will happen if your policy is at risk of terminating. Please note that Policy Termination with an outstanding loan also can result in adverse tax consequences. Please see the “Federal Income Tax Considerations” section for additional information.
As you repay a loan, the amount in the non-loaned section of the GPA will increase because we allocate loan repayments first to the GPA until you have repaid all loan amounts originally deducted from that account. Additionally, your ability to transfer funds out of the GPA following a loan repayment will be limited due to certain transfer restrictions. Please see the “Transfers” section for additional information.
All or part of your Policy Debt may be repaid at any time while the Insured is living and while the policy is In Force. We will increase the death benefit and Net Surrender Value under the policy by the amount of the repayment.
A loan repayment must be identified as such or we will consider it a premium payment. We will apply the loan repayment on the Valuation Date it is received in Good Order. If we receive the loan repayment in Good Order on a non-Valuation Date or after the end of a Valuation Date, the loan repayment is effective as of the next Valuation Date. If a loan repayment is dishonored by your bank after we have applied the loan repayment to your policy, the transaction will be deemed void and your loan repayment will be reversed.
You may initiate single or recurring loan repayments through our secure website (www.MassMutual.com) or by calling our Administrative Office and authorizing an electronic draft from your bank account. Please see the “Electronic Premium Payments” sub-section in the “Premiums” section for additional information. In addition, loan repayments may be sent to MassMutual, PO Box 92483, Chicago, IL 60675-2483.
Any loan repayment made within 30 days prior to the Policy Anniversary date will be used to first pay policy loan interest due. For any other loan repayment, we will first transfer values equal to the repayment amount from the loaned portion of the GPA to the non-loaned portion of the GPA until all loan amounts originally deducted from that account have been repaid. We will allocate any additional loan repayments by transferring values equal to the repayment amount from the loaned portion of the GPA to the non-loaned portion of the GPA and/or the applicable Separate Account Divisions, based on your premium allocation instructions in effect at that time. When we receive a loan repayment and only a portion is needed to fully repay the loan, we will apply any excess as premium and allocate it according to the current premium allocation instructions after deduction of the premium expense charge. Any subsequent loan repayments received after the loan is fully repaid will be refunded to the premium payer.
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We will deduct any outstanding Policy Debt from:
| • | the proceeds payable on the death of the Insured; |
| • | the proceeds payable when you surrender the policy; or |
| • | the Account Value if the policy lapses. |
In these situations, we will then consider the Policy Debt paid.
Policy Termination and Reinstatement
Your policy could lapse, and terminate without value, if the Account Value of the policy becomes too low to support the policy’s monthly charges. Factors that may cause your policy to terminate include: insufficient premium payments, poor investment performance, withdrawals, and unpaid loans or loan interest. Even if you have made Planned Premium payments, there is no guarantee that your policy will remain In Force. Conversely, your policy will not necessarily terminate if you do not make Planned Premium payments since the policy may have enough Account Value to cover the monthly charges.
Before your policy terminates, we allow a Grace Period during which you can pay the amount of premium needed to avoid termination. In addition, your policy offers a no-lapse guarantee, the Safety Test. If the requirements of the Safety Test are met, your policy will remain In Force during a Guarantee Period regardless of the value of the policy, unless the Policy Debt Limit is reached. We explain the Grace Period and the Safety Test in more detail in the sections below.
If there is no Policy Debt, the policy may terminate without value if:
| • | its Account Value on a Monthly Charge Date cannot cover the charges due; and |
| • | the Safety Test is not met on that date. |
If there is Policy Debt, the policy will terminate without value at the end of the Grace Period if:
| • | the Policy Debt Limit is reached, even if the Safety Test is met. The Policy Debt Limit is reached when the Policy Debt (outstanding loans plus accrued interest) exceeds the Account Value less any surrender charges that may apply: 1) on a Monthly Charge Date or (2) on the Valuation Date a premium payment is received, if the policy is in the Grace Period. |
If your policy lapses, your insurance coverage terminates. In the event of a policy lapse, we would apply the applicable surrender charge, also known as a deferred sales load, which compensates us for expenses incurred related to your policy. The surrender charge is a charge against the Account Value of the policy. The deduction is taken from the Separate Account Divisions and the GPA, excluding Policy Debt, in proportion to the values in each, on the effective date of the lapse. Please see “Surrender Charges” under “Transaction Charges” for more information.
Policy Termination could have adverse tax consequences for you. To avoid Policy Termination and potential tax consequences in these situations, you may need to make substantial premium payments or loan repayments to keep your policy In Force.
The Safety Test allows you to keep the policy In Force, regardless of the value of the policy, by meeting monthly Guarantee Premium payment requirements. Even if the Safety Test is met, this policy is at risk of terminating if Policy Debt exceeds the Account Value less any surrender charges that may apply: (1) on a Monthly Charge Date or (2) on the Valuation Date a premium payment is received, if the policy is in the Grace Period.
The Safety Test can be met only during the Guarantee Period(s) stated in the policy. Each Guarantee Period has an associated monthly Guarantee Premium. The amount of the Guarantee Premium depends on:
| • | the Insured’s issue age; |
| • | the Insured’s gender; |
| • | the Insured’s risk classification; |
| • | the riders on the policy, if any; |
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| • | the current Face Amount; and |
| • | the death benefit option in effect at the time. |
A Face Amount increase or the addition of any riders may increase the amount of Guarantee Premium. Likewise, a Face Amount decrease or the removal of any riders may decrease the amount of Guarantee Premium.
For each Guarantee Period, the Safety Test is met if:
| (1) premiums paid less any amounts refunded or withdrawn, accumulated at an effective annual interest rate of 3%, equal or exceed, |
| (2) the total of all monthly Guarantee Premiums since the Policy Date, accumulated at an effective annual interest rate of 3%. |
Generally, the policy has two Guarantee Periods:
| • | The first Guarantee Period is the first 20 Policy Years, or, if less, to Attained Age 90 of the Insured. |
| • | The second Guarantee Period is to Attained Age 100 of the Insured. |
Guarantee periods may vary by state.
In Massachusetts, there is one Guarantee Period, which is the first five Policy Years. In Texas and New Jersey, there is one Guarantee Period, which varies as follows:
|
Issue Age |
Guarantee Period |
||
|
0–50 |
20 years |
||
|
51–60 |
To Attained Age 70 |
||
|
61–81 |
9 years |
||
|
82 and above |
To Attained Age 90 |
Example:
Assume your policy is in the first Guarantee Period and the monthly Guarantee Premium for that period is $25. Also assume that you have no Policy Debt and, beginning on the Policy Date, you have made premium payments of $35 on each Monthly Charge Date. In this case, if the Account Value cannot cover the monthly charges, the policy will stay In Force because the Safety Test has been met.
Before your policy terminates, we allow a Grace Period during which you can pay the amount of premium needed to avoid termination. We will mail you a notice stating this amount. The Grace Period begins on the date the monthly charges are due. It ends 61 days after the date we mail you the notice.
If there is no Policy Debt, the amount of premium needed to avoid Policy Termination will be the lesser of:
| • | the amount needed to satisfy the Safety Test; or |
| • | the amount needed to cover the monthly charges due. |
If there is Policy Debt, the amount of premium needed to avoid Policy Termination will be the amount needed to bring the Policy Debt back within the limit (Policy Debt cannot exceed the Account Value less surrender charges that may apply: (1) on a Monthly Charge Date or (2) on the Valuation Date a premium payment is received, if the policy is in a Grace Period). During the Grace Period, the policy will stay In Force. If the Insured dies during this period and the amount of premium needed to avoid Policy Termination has not been paid, we will pay the death benefit proceeds, reduced by the amount of premium needed to avoid Policy Termination and any Policy Debt.
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If we do not receive the required payment by the end of the Grace Period, the policy will terminate without value at the end of the Grace Period. We will return a premium payment if it is less than the minimum amount needed to avoid termination.
During the Grace Period, certain financial transactions cannot be processed (transfers, withdrawals, loans). You must pay the premium due before subsequent financial transactions can be processed.
The Company’s mailing of a Policy Termination or a lapse notice to you constitutes sufficient notice of cancellation of coverage.
If your policy terminates, you may be able to reinstate it. You may not, however, reinstate your policy if:
| • | you surrendered it (unless required by law); or |
| • | five years have passed since it terminated. |
To reinstate your policy, we will need:
| • | a written application to reinstate; |
| • | evidence, satisfactory to us, that the Insured is still insurable; |
| • | a premium payment sufficient to keep the policy In Force for three months after reinstatement. The minimum amount of this premium payment will be quoted upon request; and |
| • | a MEC Notice and Acknowledgement form, if the reinstated policy would be a MEC (please see “Policy After You Reinstate” below, and the “Federal Income Tax Considerations” section). |
We will not apply the required premium for reinstatement to any investment option until we have approved your reinstatement application.
The policy will be reinstated on the Monthly Charge Date that is on, or precedes, the date we approve your application (Reinstatement Date). We will assess monthly charges due to us upon reinstatement of your policy as of the Reinstatement Date.
If you reinstate your policy, the Face Amount will be the same as it was when the policy terminated. Your Account Value will be:
| (1) | the premium paid to reinstate your policy, less |
| (2) | the premium expense charge, less |
| (3) | applicable monthly charges due. |
Additionally, if the policy lapsed during a period when a surrender charge applied and the surrender charge was taken at that time, then the applicable surrender charge will not be reinstated.
We do not reinstate Policy Debt.
Upon reinstatement, the Safety Test will apply.
If you reinstate your policy, it may become a MEC under current federal tax law. Please consult your tax adviser. More information on MECs is included in the “Federal Income Tax Considerations” section.
Reinstatement will not reverse any adverse tax consequences caused by Policy Termination unless it occurs within 90 days of the end of the Grace Period. In no situation, however, can adverse tax consequences that are a result of Policy Debt be reversed.
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Federal Income Tax Considerations
The information in this prospectus is general and is not an exhaustive discussion of all tax questions that might arise under the policy. The information is not written or intended as tax or legal advice. You are encouraged to seek legal and tax advice from a qualified tax adviser. In addition, we do not profess to know the likelihood that current federal income tax laws and Treasury Regulations or the current interpretations of the Internal Revenue Code of 1986, as amended (IRC), Regulations, and other guidance will continue. We cannot make any guarantee regarding the future tax treatment of any policy. We reserve the right to make changes in the policy to ensure that it continues to qualify as life insurance for tax purposes.
No attempt is made in this prospectus to consider any applicable state or other tax laws.
We believe the policy meets the IRC definition of life insurance. Therefore, the death benefit under the policy generally is excludable from the beneficiary’s gross income under federal tax law. If you sell the policy or there is a transfer for value under IRC Section 101(a)(2), all or a portion of the death benefit under the policy may become taxable unless an exception applies.
As a life insurance policy under the IRC, the gain accumulated in the policy is not taxed until it is withdrawn or otherwise accessed. Any gain withdrawn from the policy is taxed as ordinary income.
From time to time, the Company may be entitled to certain tax benefits related to the investment of Company assets, including those comprising the policy value. These tax benefits, which may include foreign tax credits and the corporate dividends received deduction, are not passed back to you since the Company is the owner of the assets from which the tax benefits are derived.
The following information applies only to a policy that is not a MEC under federal tax law. Please see “Modified Endowment Contracts” later in this section for information about MECs.
As a general rule, withdrawals are taxable only to the extent that the amounts received exceed your cost basis (also referred to as investment in the contract) in the policy. Cost basis equals the sum of the premiums and other consideration paid for the policy less any prior withdrawals under the policy that were not subject to income taxation. For example, if your cost basis in the policy is $10,000, amounts received under the policy will not be taxable as income until they exceed $10,000 in the aggregate; then, only the excess over $10,000 is taxable.
However, special rules apply to certain withdrawals associated with a decrease in the policy death benefit. The IRC provides that if:
| • | there is a reduction of benefits during the first 15 years after a policy is issued; and |
| • | there is a cash distribution associated with the reduction, |
you may be taxed on all or a part of the amount distributed. After 15 years, cash distributions are not subject to federal income tax, except to the extent they exceed your cost basis.
If you surrender the policy for its Net Surrender Value, all or a portion of the distribution may be taxable as ordinary income. The distribution represents income to the extent the value received exceeds your cost basis in the policy. For this calculation, the value received is equal to the Account Value, reduced by any surrender charges, but not reduced by any outstanding Policy Debt. Therefore, if there is a loan on the policy when the policy is surrendered, the loan will reduce the cash actually paid to you but will not reduce the amount you must include in your taxable income as a result of the surrender.
To illustrate how Policy Termination with an outstanding loan can result in adverse tax consequences as described above, suppose that your premiums paid (that is, your cost basis) in the policy is $10,000, your Account Value is $15,000, you have no surrender charges, and you have received no other distributions and taken no withdrawals under the policy. If, in this example, you have an outstanding Policy Debt of $14,000, you would receive a payment equal to the Net Surrender Value of only $1,000; but you still would have taxable income at the time of surrender equal to $5,000 ($15,000 Account Value minus $10,000 cost basis).
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The potential that Policy Debt will cause taxable income from Policy Termination to exceed the payment received at termination also may occur if the policy terminates without value. Factors that may contribute to these potential situations include:
| • | amount of outstanding Policy Debt at or near the maximum loan value; |
| • | unfavorable investment results affecting your policy Account Value; |
| • | increasing monthly policy charge rates due to increasing Attained Age of the Insured; |
| • | high or increasing amount of Insurance Risk, depending on death benefit option and changing Account Value; and |
| • | increasing policy loan rates if the adjustable policy loan rate is in effect. |
One example occurs when the Policy Debt Limit is reached. If, using the previous example, the Account Value were to decrease to $14,000 due to unfavorable investment results, and the policy were to terminate because the Policy Debt Limit is reached, the policy would terminate without any cash paid to you; but your taxable income from the policy at that time would be $4,000 ($14,000 Account Value minus $10,000 cost basis). The policy also may terminate without value if unpaid policy loan interest increases the outstanding Policy Debt to reach the Policy Debt Limit.
To avoid Policy Terminations that may give rise to significant income tax liability, you may need to make substantial premium payments or loan repayments to keep your policy In Force.
You can reduce the likelihood that these situations will occur by considering these risks before taking a policy loan. If you take a policy loan, you should monitor the status of your policy with your registered representative and your tax adviser at least annually, and take appropriate preventative action.
We believe that, under current tax law, any loan taken under the policy will be treated as Policy Debt of the Owner. If your policy is not a MEC, the loan will not be considered income to you when received.
Interest on policy loans used for personal purposes generally is not tax-deductible. However, you may be able to deduct this interest if the loan proceeds are used for “trade or business” or “investment” purposes, provided that you meet certain narrow criteria.
If the Owner is a corporation or other business, additional restrictions may apply. For example, there are limits on interest deductions available for loans against a business-owned policy. In addition, the IRC restricts the ability of a business to deduct interest on debt totally unrelated to any life insurance, if the business holds a cash value policy on the life of certain insureds.
Investor Control and Diversification
There are a number of tax benefits associated with variable life insurance policies. Gains on the Net Investment Experience of the Separate Account are deferred until withdrawn or otherwise accessed, and gains on transfers among Separate Account Divisions also are deferred. For these benefits to continue, the policy must continue to qualify as life insurance. In addition to other requirements, federal tax law dictates that the insurer, and not the Owner, has control of the investments underlying the various Separate Account Divisions for the policy to qualify as life insurance.
You may make transfers among Separate Account Divisions, but you may not direct the investments each Separate Account Division makes. If the IRS were to conclude that you, as the investor, have control over these investments, then the policy would no longer qualify as life insurance and you would be taxed on the gain in the policy as it is earned rather than when it is withdrawn or otherwise accessed.
The IRS has provided some guidance on investor control, but many issues remain unclear. One such issue is whether an Owner can have too much investor control if the variable life policy offers a large number of investment divisions in which to invest Account Values. We do not know if the IRS will provide any further guidance on the issue. We do not know if any such guidance would apply retroactively to policies already In Force.
Consequently, we reserve the right to further limit Net Premium allocations and transfers under the policy, so that it will not lose its qualification as life insurance due to investor control.
In addition, the IRC requires that the investments of the Separate Account Divisions be “adequately diversified” in order for a policy to be treated as a life insurance contract for federal income tax purposes. It is intended that the Separate Account Divisions, through their underlying investment Funds, will satisfy these diversification requirements.
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If a policy is a Modified Endowment Contract (MEC) under federal tax law, loans, withdrawals, and other amounts distributed under the policy are taxable to the extent of any income accumulated in the policy. The policy income is the excess of the Account Value (both loaned and non-loaned) over your cost basis. For example, if your cost basis in the policy is $10,000 and the Account Value is $15,000, then all distributions up to $5,000 (the accumulated policy income) are immediately taxable as income when withdrawn or otherwise accessed. The collateral assignment of a MEC is also treated as a taxable distribution. Death benefits paid under a MEC, however, are not taxed any differently than death benefits payable under other life insurance contracts.
If any amount is taxable as a distribution of income under a MEC, it may also be subject to a 10% penalty tax. There are a few exceptions to the additional penalty tax for distributions to individual Owners. The penalty tax will not apply to distributions:
| • | made on or after the date the taxpayer attains age 59½; or |
| • | made because the taxpayer became disabled; or |
| • | made as part of a series of substantially equal periodic payments paid for the life or life expectancy of the taxpayer, or the joint lives or joint life expectancies of the taxpayer and the taxpayer’s beneficiary. These payments must be made at least annually. |
A policy is a MEC if it satisfies the IRC definition of life insurance but fails the “7-pay test.” A policy fails this test if:
| (1) | the accumulated amount paid under the policy at any time during the first seven contract years exceeds |
| (2) | the total premiums that would have been payable at that time for a policy providing the same benefits guaranteed after the payment of seven level annual premiums. |
A life insurance policy will always be treated as a MEC if it is issued as part of an IRC Section 1035 tax-free exchange from a life insurance policy that was already a MEC.
If certain changes are made to a policy, we will retest it to determine if it has become a MEC. For example, if you reduce the death benefit during a 7-pay testing period, we will retest the policy using the lower death benefit amount, from the start of that testing period. If the reduction in death benefit causes the policy to fail the 7-pay test for any prior Policy Year, the policy will be treated as a MEC beginning in the Policy Year in which the reduction takes place.
Any reduction in benefits attributable to the non-payment of premiums will not be taken into account if the benefits are reinstated within 90 days after the reduction in such benefit.
We will retest whenever there is a “material change” to the policy while it is In Force. If there is a material change, a new 7-pay test period begins at that time. The term “material change” includes certain increases in death benefits.
Since the policy provides for flexible premium payments, we have procedures for determining whether increases in death benefits or additional premium payments cause the start of a new seven-year test period or cause the policy to become a MEC.
Once a policy fails the 7-pay test, loans and distributions taken in the year of failure and in future years are taxable as distributions from a MEC to the extent of gain in the policy. In addition, the IRS has authority to apply the MEC taxation rules to loans and other distributions received in anticipation of the policy failing the 7-pay test. The IRC authorizes the issuance of regulations providing that a loan or distribution, if taken within two years prior to the policy’s becoming a MEC, shall be treated as received in anticipation of failing the 7-pay test. However, such written authority has not yet been issued.
Under current circumstances, a loan, collateral assignment, or other distribution under a MEC may be taxable even though it exceeds the amount of gain accumulated in that particular policy. For purposes of determining the amount of taxable income received from a MEC, the law considers the total of all gain in all the MECs issued within the same calendar year to the same Owner by an insurer and its affiliates. Loans, collateral assignments, and distributions from any one MEC are taxable to the extent of this total gain.
A change of the Owner or an Insured, or an exchange or assignment of the policy, may cause the Owner to recognize taxable income.
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The impact of federal income taxes on values under the policy and on the benefit to you or your beneficiary depends on MassMutual’s tax status and on the tax status of the individual concerned. We currently do not make any charge against the Separate Account for federal income taxes. We may make such a charge eventually in order to recover the future federal income tax liability to the Separate Account.
Under current laws in several states, we may incur state and local taxes (in addition to premium taxes). These taxes are not currently significant, and we are not currently charging for them. If they increase, we may deduct charges for such taxes.
Federal estate and gift taxes, state and local estate taxes, and other taxes depend on the circumstances of each Owner or beneficiary.
The policy may be used as part of certain tax-qualified and/or ERISA employee benefit plans. Since the rules concerning the use of a policy with such plans are complex, you should not use the policy in this way until you have consulted a competent tax adviser. You may not use the policy as part of an Individual Retirement Account (IRA) or as part of a Tax-Sheltered Annuity (TSA) or an IRC Section 403(b) custodial account.
While the policy is owned by the qualified plan, we will only pay amounts under the policy while the Insured is still living (e.g., withdrawals, surrenders, and loans) to the qualified plan trustee or plan administrator. We will not make such payments directly to any other party, including the Insured participant. The only exception is for a Keogh plan, where the Insured participant is also the policy owner.
The IRC contains certain notice and consent requirements for ‘‘employer-owned life insurance’’ policies. The IRC defines ‘‘employer-owned life insurance’’ as a life insurance contract:
| • | that is owned by a person or entity engaged in a trade or business (including policies owned by related or commonly controlled parties); |
| • | insuring the life of a U.S. citizen or resident who is an employee on the date the contract is issued; and |
| • | under which the policyholder is directly or indirectly a beneficiary. |
The tax-free death benefit for employer-owned life insurance is limited to the amount of premiums paid unless certain notice and consent requirements are met. The notice requirements are met if, before the contract is issued, the employee is notified in writing of the following:
| • | the employer intends to insure the employee’s life; |
| • | the maximum Face Amount for which the employee could be insured at the time the contract was issued; and |
| • | the employer will be the beneficiary of any proceeds payable on the death of the employee. |
Prior to issuance of the contract, the employee must provide written consent to being insured under the contract and to continuation of the coverage after employment terminates.
The law also imposes annual reporting and record keeping requirements for businesses owning employer-owned life insurance policies. The employer must maintain records of the employer’s notice and the employee’s consent, and must file certain annual reports with the IRS.
Provided that the notice and consent requirements are satisfied, the death proceeds of an employer-owned life insurance policy will generally be income tax-free in the following situations:
| (1) | At the time the contract is issued, the insured employee is a director, highly compensated employee, or highly compensated individual within the meaning of IRC Section 101(j)(2)(A)(ii); |
| (2) | The Insured was an employee at any time during the 12-month period before his or her death; |
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| (3) | The proceeds are paid to a member of the Insured’s family, an individual who is the designated beneficiary of the Insured under the contract, a trust established for the benefit of any such member of the family or designated beneficiary, or the Insured’s estate; or |
| (4) | The proceeds are used to purchase an equity interest in the employer from any of the persons described in (3). |
Death proceeds that do not fall within one of the enumerated exceptions will be subject to ordinary income tax (even if the notice and consent requirements were met), and MassMutual will report payment of taxable proceeds to the IRS, where applicable.
Businesses can use the policies in various arrangements, including nonqualified deferred compensation or salary continuance plans, split dollar insurance plans, executive bonus plans, tax exempt and nonexempt welfare benefit plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances. The Internal Revenue Service and Treasury have issued guidance that may substantially affect these arrangements. If you are purchasing the policy for any arrangement the value of which depends in part on its tax consequences, you should consult a qualified tax adviser.
Prospective Owners that are corporations should consult a tax adviser about the treatment of the policy under the Treasury Regulations applicable to corporate tax shelters.
Generation Skipping Transfer Tax Withholding
Under certain circumstances, the IRC may impose a “generation skipping transfer tax” when all or part of a life insurance policy is transferred to, or a death benefit is paid to, an individual two or more generations younger than the Owner. Regulations issued under the IRC may require us to deduct the tax from your policy, or from any applicable payment, and pay it directly to the IRS.
To the extent that policy distributions are taxable, they are generally subject to withholding for the recipient’s federal income tax liability. Recipients can generally elect, however, not to have tax withheld from distributions.
Life Insurance Purchases by Residents of Puerto Rico
Income received by residents of Puerto Rico under life insurance policies issued by a United States life insurance company is U.S.-source income that is generally subject to United States federal income tax.
Non-Resident Aliens and Foreign Entities
Generally, a distribution from a contract to a non-resident alien or foreign entity is subject to federal income tax withholding at a rate of 30% of the amount of the income that is distributed. A non-resident alien is a person who is neither a citizen, nor a resident, of the United States of America (U.S.). We are required to withhold the tax and send it to the IRS. Some distributions to non-resident aliens or foreign entities may be subject to a lower (or no) tax if a treaty applies. In order to obtain the benefits of such a treaty, the non-resident alien must claim the treaty benefit on Form W-8BEN (or the equivalent entity form), providing us with:
| • | proof of residency (in accordance with IRS requirements); and |
| • | the applicable taxpayer identification number. |
If the above conditions are not met, we will withhold 30% of the income from the distribution. Additionally, under the Foreign Account Tax Compliance Act, effective July 1, 2014, U.S. withholding may be required for certain entity owners (including foreign financial institutions and non-financial foreign entities (such as corporations, partnerships and trusts)) at a rate of 30% without regard to lower treaty rates.
64
If you sell your policy to a viatical settlement provider, and the Insured is considered terminally or chronically ill within the meaning of IRC Section 101(g), the proceeds of the sale will be treated as death benefit proceeds, and will generally be received by you income tax-free.
However, the sale of your policy to an unrelated investor in a sale that does not qualify as a viatical settlement may have adverse tax consequences. IRS guidance issued in 2009 provides that the gain from such a sale is taxed as ordinary income to the extent that you would have realized ordinary income if you had instead surrendered your policy. Any amount you receive in excess of that amount is taxed as capital gain income. Under the Tax Cuts and Jobs Act of 2017, these sales may qualify as reportable sales and require the purchaser and the contract issuer to report the sale to the seller and the IRS. Previously the IRS had taken the position that your cost basis in the policy for computing the gain on the sale must be decreased by the cumulative cost of insurance charge incurred prior to the sale. The Tax Cuts and Jobs Act of 2017 provides that for reportable sales that take place after August 25, 2009, no reduction in the cost basis for the cost of insurance incurred is required.
Medicare Hospital Insurance Tax
A Medicare Hospital Insurance Tax (known as the ‘‘Unearned Income Medicare Contribution’’) applies to all or part of a taxpayer’s ‘‘net investment income,’’ at a rate of 3.8%, when certain income thresholds are met. ‘‘Net investment income’’ is defined to include, among other things, non-qualified annuities and net gain attributable to the disposition of property.
Under final regulations, this definition includes the taxable portion of any annuitized payment from a life insurance contract and it may also include the gain from the sale of a life insurance contract. Under current guidance we are required to report to the IRS whether a distribution is potentially subject to the tax. You should consult a tax adviser as to the potential impact of the Medicare Hospital Insurance Tax on your policy.
Other Policy Rights and Limitations
Right to Assign the Policy
Generally, you may assign the policy as collateral for a loan or other obligation. For any assignment we allow to be binding on us, we must receive, in Good Order, written notice of the assignment and a signed copy of it at our Administrative Office. We are not responsible for the validity of any assignment. If you assign your policy, certain of your rights may only be exercised with the consent of the assignee of record.
Possible Restrictions on Financial Transactions
Federal laws designed to counter terrorism and prevent money laundering might, in certain circumstances, require us to reject a premium payment or block an Owner’s ability to make certain transactions and thereby refuse to accept any request for transfers, withdrawals, surrenders, loans, or death benefits, until the instructions are received from the appropriate regulator. We may also be required to provide additional information about you and your policy to government regulators.
Delay of Payment of Proceeds from the GPA
We may delay payment of any Net Surrender Values, withdrawals, and loan proceeds that are based on the GPA for up to six months from the date the request is received at our Administrative Office.
If we delay payment of a surrender or withdrawal for 30 days or more, we add interest to the date of payment at the same rate it is paid under the interest payment option.
65
Delay of Payment of Proceeds from the Separate Account
We may suspend or postpone transfers from the Separate Account Divisions, or delay payment of the Net Surrender Values, withdrawals, loan proceeds and death benefits from the Separate Account during any period when:
| • | it is not reasonably practicable to determine the amount because the NYSE is closed (other than customary weekend and holiday closings); |
| • | trading is restricted by the SEC; |
| • | an emergency exists as a result of which disposal of shares of the Funds is not reasonably practicable or we cannot reasonably value the shares of the Funds; or |
| • | the SEC, by order, permits us to delay payment in order to protect our Owners. |
If, pursuant to SEC rules, a money market Fund suspends payment of redemption proceeds in connection with a liquidation of the Fund, we will delay payment of any transfer, partial withdrawal, surrender, loan, or death benefit from a money market division until the Fund is liquidated.
The policies are no longer for sale to the public. While the policies were offered for sale, they were sold by both registered representatives of MML Investors Services, LLC (MMLIS), a subsidiary of MassMutual, and by registered representatives of other broker-dealers who have entered into distribution agreements with MML Strategic Distributors, LLC (MSD), a subsidiary of MassMutual. Pursuant to separate underwriting agreements with the Company, on its own behalf and on behalf of the Separate Account, MMLIS serves as principal underwriter of the policies sold by its registered representatives, and MSD serves as principal underwriter of the policies sold by registered representatives of other broker-dealers who have entered into distribution agreements with MSD.
Both MMLIS and MSD are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority (FINRA). MMLIS and MSD receive compensation for their actions as principal underwriters of the policies.
Commissions and Allowances Paid to MMLIS and Broker-Dealers
Commissions are paid to MMLIS and all broker-dealers involved in the sale of the policy. Commissions for sales of the policies by MMLIS registered representatives are paid by MassMutual on behalf of MMLIS to its registered representatives. Commissions for sales of the policies by registered representatives of other broker-dealers are paid by MassMutual on behalf of MSD to those broker-dealers.
Commissions are a percentage of the premium paid in each year of coverage and differ for premiums paid up to the Target Premium and for premiums paid in excess of the Target Premium. The Target Premium is based on the issue age, gender and risk classification of the Insured.
The maximum commission percentages we pay to MMLIS registered representatives and broker-dealers are:
|
First Year |
Commission in |
Commission in |
Commission in |
|
50% of premium paid up to the |
5% of premium paid up to the |
3% (5% for MMLIS registered |
1% of premium paid up to the |
We also pay an annual commission of 0.15% of the average monthly Account Value after the first Policy Year.
66
Additional Compensation Paid to MMLIS
Most MMLIS registered representatives are also MassMutual insurance agents, and as such, are eligible for certain cash and non-cash benefits from MassMutual. Cash compensation includes bonuses and allowances based on factors such as sales, productivity and persistency (policy retention). Non-cash compensation includes various recognition items such as prizes and awards as well as attendance at, and payment of the costs associated with attendance at, conferences, seminars and recognition trips, and also includes contributions to certain individual plans such as pension and medical plans. Sales of this policy may help these registered representatives and their supervisors qualify for such benefits. MMLIS registered representatives who are also General Agents or sales managers of MassMutual also may receive overrides, allowances and other compensation that is based on sales of the policy by their registered representatives.
Additional Payments to Certain Broker-Dealers
In addition to the commissions described above, we may make cash payments to certain broker-dealers to attend sales conferences and educational seminars, thereby promoting awareness of our products. The broker-dealers may use these payments for any reason, including helping offset the costs of the conference or educational seminar.
We may also make cash payments to broker-dealers pursuant to marketing service agreements. These marketing service arrangements vary depending on a number of factors, including the specific level of support being provided. These payments are not made in connection with the sale of specific policies.
These additional payments are not offered to all broker-dealers and the terms of these arrangements may differ. Any such payments will be paid by MassMutual out of our assets and will not result in any additional direct charge to you. Such payments may give us greater access to the registered representatives of the broker-dealers that receive such payments and may influence the way that a broker-dealer markets the policy.
Compensation in General
The compensation arrangements described in the paragraphs above may have provided a registered representative with an incentive to sell this policy over other available policies whose issuers did not provide such compensation or which provided lower levels of compensation. You may want to take these compensation arrangements into account when evaluating any recommendations regarding this policy.
We intend to recoup a portion of the cash and non-cash compensation payments that we make through the assessment of certain charges described in this prospectus, including the contingent deferred sales charge. We may also use some of the 12b-1 distribution fee payments (if applicable) and other payments that we receive from certain Funds to help us make these cash and non-cash payments.
Your registered representative typically receives a portion of the compensation that is payable to his or her broker-dealer, depending on the agreement between the representative and their firm. MassMutual is not involved in determining compensation paid to a registered representative of an unaffiliated broker-dealer. You may contact, as applicable, MMLIS, your broker-dealer or registered representative to find out more information about the compensation they may receive in connection with your purchase of a policy.
Commissions or overrides may also be paid to broker-dealers providing wholesaling services (such as providing sales support and training for sales representatives who sell the policies).
Computer System, Cybersecurity, and Service Disruption Risks
The Company relies on its parent, MassMutual, for various operating and administrative services including computer systems. MassMutual and its business partners rely on computer systems to conduct business, including customer service, marketing and sales activities, customer relationship management and producing financial statements. While the MassMutual and its business partners have policies, procedures, automation and backup plans designed to prevent or limit the effect of failures, their respective computer systems may be vulnerable to disruptions or breaches as the result of natural disasters, man-made disasters, criminal activity, pandemics, or other events beyond their control. The failure of MassMutual or its business partners’ computer systems for any reason could disrupt operations, result in the loss of customer business and adversely impact profitability.
67
MassMutual and its business partners retain confidential information on their respective computer systems, including customer information and proprietary business information. Any compromise of the security of MassMutual or its business partners’ computer systems that results in the disclosure of personally identifiable customer information could damage our reputation, expose us to litigation, increase regulatory scrutiny and require us to incur significant technical, legal, and other expenses. The risk of cyber-attacks may be higher during periods of geopolitical turmoil (such as the Russian invasion of Ukraine and the responses by the United States and other governments).
Geopolitical and other events, including natural disasters, war, terrorism, economic uncertainty, trade disputes, public health crises and related geopolitical events, and widespread disease, including pandemics (such as COVID-19) and epidemics, have led, and in the future may lead, to increased market volatility, which may disrupt U.S. and world economies and markets and may have significant adverse direct or indirect effects on the Company and MassMutual. These events may adversely affect computer and other systems on which MassMutual and the Company rely, interfere with the processing of contract-related transactions (including the processing of orders from Owners and orders with the Funds) and the Company’s ability to administer this contract in a timely manner, or have other possible negative effects. These events may also impact the issuers of securities in which the Funds invest, which may cause the Funds underlying the contract to lose value. There can be no assurance that we, the Funds or our service providers will avoid losses affecting the contract due to these geopolitical and other events. If we are unable to receive U.S. mail or fax transmissions due to a closure of U.S. mail delivery by the government or due to the need to protect the health of our employees, you may still be able to submit transaction requests to the Company electronically or over the telephone. Our inability to receive U.S. mail or fax transmissions may cause delays in the pricing and processing of transaction requests submitted to us by U.S. mail or by fax during that time period.
The Company is subject to legal and regulatory actions, including class action lawsuits, in the ordinary course of its business. Our pending legal and regulatory actions include proceedings specific to us, as well as proceedings generally applicable to business practices in the industry in which we operate. From time to time, we also are subject to governmental and administrative proceedings and regulatory inquiries, examinations, and investigations in the ordinary course of our business. In addition, we, along with other industry participants, may occasionally be subject to investigations, examinations, and inquiries (in some cases industry-wide) concerning issues upon which regulators have decided to focus. Some of these proceedings involve requests for substantial and/or unspecified amounts, including compensatory or punitive damages.
While it is not possible to predict with certainty the ultimate outcome of any pending litigation proceedings or regulatory action, management believes, based on information currently known to it, that the ultimate outcome of all pending litigation and regulatory matters, after consideration of applicable reserves and rights to indemnification, is not likely to have a material adverse effect upon the Separate Account, the ability of the principal underwriter(s) to perform in accordance with its contracts with the Company on behalf of the Separate Account, or the ability of the Company to meet its obligations under the policy.
For more information regarding the Company’s litigation and other legal proceedings, please see the notes to the Company’s financial statements contained within the SAI.
Every state has some form of unclaimed property law that imposes varying legal and practical obligations on insurers and, indirectly, on policy owners, Insureds, beneficiaries, and any other payees of proceeds from a policy. Unclaimed property laws generally provide for the transfer of benefits or payments under various circumstances to the abandoned property division or unclaimed property office in the state of last residence. This process is known as escheatment. To help avoid escheatment, keep your own information, as well as beneficiary and any other payee information up-to-date, including: full names, postal and electronic media addresses, telephone numbers, dates of birth, and social security numbers. To update this information, contact our Administrative Office.
We encourage both existing and prospective Owners to read and understand our financial statements and those of the Separate Account. Our audited statutory financial statements and the Separate Account’s audited U.S. GAAP financial statements are included in the SAI. You can request the SAI by contacting our Administrative Office.
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Funds Available Under the Policy
The following is a list of Funds currently available under the policy. This list of Funds is subject to change, as discussed in this prospectus for the policy. Before you invest, you should review the prospectuses for the Funds. These prospectuses contain more information about the Funds and their risks and may be amended from time to time. You can find the prospectuses and other information about the Funds online at www.MassMutual.com/VUL. You can also request this information at no cost by calling (800) 272-2216 or sending an email request to MassMutualServiceCenter@MassMutual.com.
The current expenses and performance information below reflects fees and expenses of the Funds, but does not reflect the other fees and expenses that your policy may charge. Expenses would be higher and performance would be lower if these charges were included. Each Fund’s past performance is not necessarily an indication of future performance.
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average Annual Total Returns |
||
|
1 Year |
5 Year |
10 Year |
|||
|
Asset Allocation |
American Funds Insurance Series® Asset Allocation Fund (Class 2) |
0.55
%
|
14.27
%
|
9.20
%
|
7.25
%
|
|
Money Market |
MML U.S. Government Money Market Fund (Initial Class)(1) |
0.52
%
|
4.64
%
|
1.54
%
|
0.95
%
|
|
Fixed Income |
Invesco V.I. Core Plus Bond Fund (Series I) |
0.61
%
(*)
|
6.14
%
|
–3.41
%
|
1.89
%
|
|
Fixed Income |
Invesco V.I. Global Strategic Income Fund (Series I) |
0.92
%
(*)
|
8.88
%
|
1.30
%
|
1.50
%
|
|
Fixed Income |
MML Inflation-Protected and Income Fund (Initial Class) |
0.61
%
(*)
|
5.43
%
|
3.19
%
|
2.48
%
|
|
Fixed Income |
MML Managed Bond Fund (Initial Class) |
0.45
%
|
6.70
%
|
1.58
%
|
2.04
%
|
|
Balanced |
Janus Henderson Balanced Portfolio (Service) |
0.87
%
|
15.13
%
|
9.37
%
|
7.73
%
|
|
Balanced |
MML Blend Fund (Initial Class)(2) |
0.50
%
|
17.62
%
|
9.10
%
|
7.55
%
|
|
Large Cap Value |
LVIP American Century Disciplined Core Value Fund |
0.71
%
(*)
|
8.65
%
|
10.19
%
|
8.19
%
|
|
Large Cap Value |
LVIP American Century Value Fund (Standard Class II)(4) |
0.71
%
(*)
|
9.10
%
|
11.87
%
|
8.53
%
|
69
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average Annual Total Returns |
||
|
1 Year |
5 Year |
10 Year |
|||
|
Large Cap Value |
MML Equity Fund (Initial Class) |
0.44
%
|
9.32
%
|
11.99
%
|
8.34
%
|
|
Large Cap Value |
T. Rowe Price Equity Income Portfolio |
0.74
%
|
9.54
%
|
11.20
%
|
7.84
%
|
|
Large Cap Blend |
American Funds Insurance Series® Growth-Income Fund (Class 2) |
0.53
%
|
26.14
%
|
13.36
%
|
10.91
%
|
|
Large Cap Blend |
Fidelity® VIP Contrafund® Portfolio (Initial Class) |
0.56
%
|
33.45
%
|
16.65
%
|
11.61
%
|
|
Large Cap Blend |
Invesco V.I. Diversified Dividend Fund (Series I) |
0.68
%
|
9.04
%
|
9.81
%
|
7.80
%
|
|
Large Cap Blend |
Invesco V.I. Main Street Fund® (Series I) |
0.80
%
(*)
|
23.22
%
|
13.57
%
|
10.02
%
|
|
Large Cap Blend |
MFS® Investors Trust Series (Initial Class) |
0.78
%
(*)
|
18.98
%
|
13.55
%
|
10.27
%
|
|
Large Cap Blend |
MML Equity Index Fund (Class II) |
0.28
%
|
25.93
%
|
15.38
%
|
11.73
%
|
|
Large Cap Growth |
Goldman Sachs Strategic Growth Fund (Institutional) |
0.70
%
(*)
|
41.94
%
|
17.33
%
|
13.17
%
|
|
Large Cap Growth |
Invesco V.I. Capital Appreciation Fund (Series I) |
0.80
%
(*)
|
35.38
%
|
16.40
%
|
11.56
%
|
|
Large Cap Growth |
Janus Henderson Forty Portfolio (Institutional) |
0.55
%
|
39.96
%
|
16.92
%
|
13.73
%
|
|
Large Cap Growth |
MML Blue Chip Growth Fund (Initial Class) |
0.78
%
|
49.53
%
|
12.93
%
|
12.05
%
|
|
Large Cap Growth |
T. Rowe Price Blue Chip Growth Portfolio |
0.75
%
(*)
|
49.29
%
|
13.50
%
|
12.31
%
|
|
Small/Mid-Cap Value |
Franklin Small Cap Value VIP Fund (Class 2) |
0.91
%
(*)
|
13.02
%
|
11.34
%
|
7.31
%
|
|
Small/Mid-Cap Blend |
DWS Small Cap Index VIP (Class A) |
0.38
%
(*)
|
16.76
%
|
9.67
%
|
6.89
%
|
70
|
Fund Type |
Fund and Adviser/Sub-Adviser |
Current Expenses (expenses/ average assets) |
Average Annual Total Returns |
||
|
1 Year |
5 Year |
10 Year |
|||
|
Small/Mid-Cap Blend |
MML Small Cap Equity Fund (Initial Class) |
0.73
%
|
17.81
%
|
13.18
%
|
9.09
%
|
|
Small/Mid-Cap Growth |
Invesco V.I. Discovery Mid Cap Growth Fund (Series I) |
0.87
%
|
13.15
%
|
12.77
%
|
9.79
%
|
|
Small/Mid-Cap Growth |
MFS® New Discovery Series (Initial Class) |
0.87
%
(*)
|
14.41
%
|
11.08
%
|
7.67
%
|
|
Small/Mid-Cap Growth |
MML Small Cap Growth Equity Fund (Initial Class) |
1.08
%
(*)
|
16.84
%
|
11.91
%
|
8.80
%
|
|
Small/Mid-Cap Growth |
T. Rowe Price Mid-Cap Growth Portfolio |
0.84
%
|
19.96
%
|
11.63
%
|
10.50
%
|
|
International/Global |
Invesco Oppenheimer V.I. International Growth Fund (Series I) |
1.00
%
(*)
|
21.06
%
|
8.72
%
|
3.80
%
|
|
International/Global |
Invesco V.I. Global Fund (Series I) |
0.82
%
|
34.73
%
|
12.30
%
|
8.47
%
|
|
International/Global |
Janus Henderson Global Research Portfolio (Institutional) |
0.61
%
|
26.78
%
|
13.33
%
|
9.01
%
|
|
International/Global |
Templeton Foreign VIP Fund (Class 2) |
1.07
%
(*)
|
20.76
%
|
5.27
%
|
1.28
%
|
|
Specialty(5) |
Invesco V.I. Health Care Fund (Series I) |
0.98
%
|
3.02
%
|
8.75
%
|
6.87
%
|
|
Specialty(5) |
Invesco V.I. Technology Fund (Series I) |
0.98
%
|
46.94
%
|
14.92
%
|
12.24
%
|
|
Specialty(5) |
MML Managed Volatility Fund (Initial Class) |
1.06
%
|
12.87
%
|
5.74
%
|
4.36
%
|
| (*) | These Funds and their investment advisers have entered into contractual fee waivers or expense reimbursements. These temporary fee reductions are reflected in their current expenses. Those contractual arrangements are designed to reduce the Fund’s total current expenses for Owners and will continue past the current year. |
| (1) | You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund’s sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time. The yield of this Fund may become very low during periods of low interest rates. After deduction of Separate Account charges, the yield in the division that invests in this Fund could be negative. |
| (2) | These are fund-of-funds investment choices. They are known as fund-of-funds because they invest in other underlying funds. A fund offered in a fund-of-funds structure may have higher expenses than a direct investment in its underlying funds because a fund-of-funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying funds in which it invests. |
| (3) | Effective April 26, 2024, American Century VP Disciplined Core Value Fund reorganized into LVIP American Century Disciplined Core Value Fund. |
| (4) | Effective April 26, 2024, American Century VP Value Fund reorganized into LVIP American Century Value Fund. |
71
| (5) | Specialty funds are an all-encompassing category that consists of funds that forgo broad diversification to concentrate on a certain segment of the economy or a specific targeted strategy. For example, sector funds are targeted strategy funds aimed at specific sectors of the economy, such as financial, technology, healthcare, and so on. Sector funds can, therefore, be more volatile than a more diversified equity fund since the stocks in a given sector tend to be highly correlated with each other. |
72
Hypothetical Examples of the Impact of the Minimum Death Benefit
Example I
Assume the following:
| • | Death Benefit Option 1. |
| • | Face Amount is $500,000. |
| • | Account Value is $50,000. |
| • | Policy Debt is $0. |
| • | Insured’s Attained Age is 45. |
| • | Death Benefit Factor is 2.15. |
The death benefit for death benefit option 1 is the greater of the Face Amount or the Minimum Death Benefit. The Minimum Death Benefit is calculated by multiplying the Account Value times the death benefit factor.
The death benefit will be $500,000 based on the greater of:
| • | $500,000 or |
| • | $50,000 x 2.15 = $107,500 |
Example II
Assume the following:
| • | Death Benefit Option 1. |
| • | Face Amount is $500,000. |
| • | Account Value is $250,000. |
| • | Policy Debt is $0. |
| • | Insured’s Attained Age is 45. |
| • | Death Benefit Factor is 2.15. |
The death benefit for death benefit option 1 is the greater of the Face Amount or the Minimum Death Benefit. The Minimum Death Benefit is calculated by multiplying the Account Value times the death benefit factor.
The death benefit will be $537,500 based on the greater of:
| • | $500,000 or |
| • | $250,000 x 2.15 = $537,500 |
Hypothetical Examples of the Impact of the Account Value and Premiums
Example I ~ Death Benefit Option 1
Assume the following:
| • | Face Amount is $1,000,000. |
| • | Account Value is $50,000. |
73
| • | Minimum Death Benefit is $219,000. |
| • | Policy Debt is $0. |
Based on these assumptions,
| • | the death benefit is $1,000,000. |
If the Account Value increases to $80,000 and the Minimum Death Benefit increases to $350,400,
| • | the death benefit remains at $1,000,000. |
If the Account Value decreases to $30,000 and the Minimum Death Benefit decreases to $131,400,
| • | the death benefit still remains at $1,000,000. |
Example II ~ Death Benefit Option 2
Assume the following:
| • | Face Amount is $1,000,000. |
| • | Account Value is $50,000. |
| • | Minimum Death Benefit is $219,000. |
| • | Policy Debt is $0. |
Based on these assumptions,
| • | the death benefit is $1,050,000 (Face Amount plus Account Value). |
If the Account Value increases to $80,000 and the Minimum Death Benefit increases to $350,400,
| • | the death benefit will increase to $1,080,000. |
If the Account Value decreases to $30,000 and the Minimum Death Benefit decreases to $131,400,
| • | the death benefit will decrease to $1,030,000. |
Example III ~ Death Benefit Option 3
Assume the following:
| • | Face Amount is $1,000,000. |
| • | Account Value is $50,000. |
| • | Minimum Death Benefit is $219,000. |
| • | Policy Debt is $0. |
| • | Premiums paid (and not refunded) under the policy to date total $40,000. |
Based on these assumptions,
| • | the death benefit is $1,040,000 (Face Amount plus Premiums paid (and not refunded)). |
If you pay an additional $30,000 of premium and the Account Value increases to $80,000 and the Minimum Death Benefit increases to $350,400,
| • | the death benefit will increase to $1,070,000. |
74
Hypothetical Examples of Death Benefit Option Changes
Example I ~ Change from Option 2 to Option 1
For a change from Option 2 to Option 1, the Face Amount is increased by the amount of the Account Value on the effective date of the change.
For example, if the policy has a Face Amount of $500,000 and an Account Value of $25,000, the death benefit under Option 2 is equal to the Face Amount plus the Account Value, or $525,000. If you change from Option 2 to Option 1, the death benefit under Option 1 is equal to the policy Face Amount. Since the death benefit under the policy does not change as the result of a death benefit option change, the Face Amount will be increased from $500,000 under Option 2 to $525,000 under Option 1 and the death benefit after the change will remain at $525,000.
Example II ~ Change from Option 3 to Option 1
For a change from Option 3 to Option 1, the Face Amount is increased by the amount of the premiums paid (and not refunded) to the effective date of the change.
For example, if a policy has a Face Amount of $500,000, and premium payments of $12,000 have been made to date, the death benefit under Option 3 is equal to the Face Amount plus the premiums paid (and not refunded), or $512,000. If you change from Option 3 to Option 1, the death benefit under Option 1 is equal to the Face Amount. Since the death benefit under the policy does not change as the result of a death benefit option change, the Face Amount will be increased from $500,000 under Option 3 to $512,000 under Option 1 and the death benefit after the change will remain at $512,000.
Example III ~ Change from Option 1 to Option 2
For a change from Option 1 to Option 2, the Face Amount will be decreased by the amount of the Account Value on the effective date of the change.
For example, if the policy has a Face Amount of $700,000 and an Account Value of $25,000, under Option 1 the death benefit is equal to the Face Amount, or $700,000. If you change from Option 1 to Option 2, the death benefit under Option 2 is equal to the Face Amount plus the Account Value. Since the death benefit does not change as the result of a death benefit option change, the Face Amount will be decreased by $25,000 to $675,000, and the death benefit under Option 2 after the change will remain at $700,000.
Example IV ~ Change from Option 1 to Option 3
For a change from Option 1 to Option 3, the Face Amount will be decreased by the amount of premiums paid (and not refunded) to the effective date of the change.
For example, if the policy has a Face Amount of $700,000 and premiums paid (and not refunded) to date are $30,000, the death benefit under Option 1 is equal to the Face Amount, or $700,000. If you change from Option 1 to Option 3, the death benefit under Option 3 is equal to the Face Amount plus the premiums paid (and not refunded) to date. Since the death benefit under the policy does not change as the result of a death benefit option change, the Face Amount will be decreased from $700,000 under Option 1 to $670,000 under Option 3 and the death benefit after the change will remain at $700,000.
75
Example V ~ Change from Option 2 to Option 3, or from Option 3 to Option 2
For a change from Option 2 to Option 3 or from Option 3 to Option 2, the Face Amount is changed (increased or decreased) by the difference between the Account Value and the premiums paid (and not refunded) to date. For example, if the policy has a Face Amount of $1,000,000 and an Account Value of $70,000 and premiums paid (and not refunded) of $25,000, the death benefit under Option 2 is equal to the Face Amount plus the Account Value, or $1,070,000. If you change from Option 2 to Option 3, the death benefit under Option 3 is equal to the Face Amount plus the premiums paid (and not refunded) to date. Since the death benefit under the policy does not change as the result of a Death Benefit Option change, the Face Amount will be increased by the difference between the Account Value and the premiums paid (and not refunded), or $45,000, to $1,045,000 under Option 3, maintaining a death benefit of $1,070,000.
A similar type of change would be made for a change from Option 3 to Option 2.
76
Hypothetical Example – Accelerated Death Benefit Rider for Terminal Illness
The calculations below show the impact of accelerating the death benefit under this rider for a sample policy.
Policy details prior to the acceleration of the death benefit:
|
Death Benefit |
$250,000 |
||
|
Account Value |
$50,000 |
The Eligible Amount is the amount of death benefit under the policy that can be considered for acceleration.
| Eligible Amount = Death Benefit - Account Value Eligible Amount = $250,000 - $50,000 = $200,000 |
The Amount To Be Accelerated cannot exceed 75% of the Eligible Amount, or $150,000.
The Insured is terminally ill as defined in the rider, and the Owner requests to accelerate $100,000 of death benefit. Alternatively, the Owner could request the Terminal Illness Benefit Payment amount rather than the amount to be accelerated. Assuming an Annual Interest Rate of 5%, the interest charge is calculated as follows:
Interest Charge = 5% x 100,000 / (1 + 5%) = $4,761.90
The terminal illness benefit payment is then calculated as follows:
|
Amount to Be Accelerated |
$100,000.00 |
||
|
Less Interest Charge |
-$4,761.90 |
||
|
Less administrative fee |
-$250.00 |
||
|
Terminal Illness Benefit Payment |
$94,988.10 |
A lien of $100,000 is placed on the policy. The death benefit after acceleration is reduced by the amount of the lien, from $250,000 to $150,000. No other policy values are impacted.
77
Hypothetical Example – Substitute of Insured Rider
Below is an example of exercising this rider.
Policy details prior to the substitution:
|
Issue Date |
1/1/2020 |
|
Insured Date of Birth |
1/1/1965 |
|
Issue Age |
55 |
|
Sex |
Male |
|
Risk Class |
Tobacco |
|
Face Amount |
$250,000 |
|
Account Value on 1/1/2030 |
$50,000 |
On 1/1/2030, the Substitute of Insured Rider is exercised with the following Insured:
|
Substitute Insured Date of Birth |
1/1/1980 |
|
Issue Age |
40 |
|
Sex |
Female |
|
Risk Class |
Non-Tobacco |
The Face Amount ($250,000) is unchanged. There is no other cost or credit associated with exercising the rider. Going forward, all monthly charges, surrender charges, and other values after the substitution will be based on the life and risk class of the substitute Insured as if the substitute Insured were the original Insured. Below is the impact on the guaranteed monthly charges on the date of substitution:
|
Breakdown of Guaranteed Monthly Charges on Date of Substitution |
|||||
|
Original Insured |
Substitute Insured |
||||
|
Charge for Exercising Rider |
0.00 |
0.00 |
|||
|
Insurance Charge |
$328.98 |
$23.00 |
|||
|
Face Amount Charge |
$182.50 |
$125.00 |
|||
|
Administrative Charge |
$6.00 |
$6.00 |
|||
|
Surrender Charge |
0.00 |
0.00 |
|||
|
Account Value After Charges |
$49,384.99 |
$49,843.35 |
|||
78
The SAI contains additional information about the Separate Account and the policy. The SAI is incorporated into this prospectus by reference and is legally part of this prospectus. We filed the SAI with the SEC.
This prospectus and the SAI are available online at www.MassMutual.com/VUL. For a free copy of other information about this policy, or general inquiries, you can contact our Administrative Office:
MassMutual Customer Service Center
PO Box 1865
Springfield, MA 01102-1865
(800) 272-2216
(866) 329-4527 (Fax)
www.MassMutual.com
MassMutualServiceCenter@MassMutual.com (Email Requests)
Reports and other information about the Separate Account, including the SAI, are also available on the SEC website (www.sec.gov) and can be obtained, upon payment of a duplicating fee, by electronic request at the following email address: publicinfo@sec.gov.
You can also request, free of charge, a personalized illustration of death benefits, surrender values, and cash values from your registered representative or by calling our Administrative Office.
Investment Company Act file number: 811-09020
Securities Act file number: 333-49457
Class (Contract) Identifier: C000030137
STATEMENT OF ADDITIONAL INFORMATION
C.M. LIFE INSURANCE COMPANY
(Depositor)
C.M. LIFE VARIABLE LIFE SEPARATE ACCOUNT I
(Registrant)
Variable Universal Life
April 29, 2024
This Statement of Additional Information (SAI) is not a prospectus. It should be read in conjunction with the statutory prospectus dated April 29, 2024, for the Variable Universal Life (VUL) policy. The VUL policy and its statutory prospectus may be referred to in this SAI.
For a copy of the VUL statutory prospectus, contact your registered representative, our Administrative Office by mail at PO Box 1865, Springfield, Massachusetts, 01102-1865, or by phone (800) 272-2216, or access the internet at www.MassMutual.com/VUL, or access the Securities and Exchange Commission website at www.sec.gov.
TABLE OF CONTENTS
|
SAI |
Prospectus |
|
|
General Information and History ....................... |
2 |
20 |
|
Company ............................................ |
2 |
20 |
|
The Separate Account ................................ |
2 |
20 |
|
Services ................................................ |
2 |
|
|
Additional Information About the Operation of the Policy and the Registrant ............................... |
2 |
|
|
Purchase of Shares in Underlying Investment Funds .. |
2 |
|
|
Annual Reports ...................................... |
2 |
|
|
Underwriters ........................................... |
3 |
66 |
|
Commissions ........................................ |
3 |
66 |
|
Additional Information ................................. |
3 |
|
|
Underwriting Procedures ............................. |
3 |
|
|
Increases in Face Amount ............................ |
4 |
42 |
|
Performance Data ...................................... |
4 |
|
|
Experts ................................................ |
4 |
|
|
Financial Statements ................................... |
5 |
68 |
|
The Registrant ....................................... |
5 |
|
|
The Depositor ........................................ |
5 |
1
GENERAL INFORMATION AND HISTORY
Company
In this Statement of Additional Information, the “Company,” “we,” “us,” and “our” refer to C.M. Life Insurance Company (C.M. Life). C.M. Life, which was incorporated in Connecticut on April 25, 1980, is a wholly owned stock life insurance subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual®). C.M. Life provides life insurance and annuities to individuals and group life insurance to institutions. MassMutual and its subsidiaries provide individual and group life insurance, disability insurance, individual and group annuities and guaranteed interest contracts to individual and institutional customers in all 50 states of the U.S., the District of Columbia and Puerto Rico. Products and services are offered primarily through MassMutual’s distribution channels: MassMutual Financial Advisors, MassMutual Strategic Distributors, Institutional Solutions and Worksite.
MassMutual was established on May 15, 1851 and is organized as a mutual life insurance company in the Commonwealth of Massachusetts. C.M. Life’s home office is located at 200 Great Pond Drive, Suite 150, Windsor, Connecticut 06095.
The Company’s Board of Directors established the Separate Account (C.M. Life Variable Life Separate Account I) on February 2, 1995, as a separate investment account of C.M. Life. It was established based on the laws of the State of Connecticut. It is registered with the Securities and Exchange Commission (SEC) as a unit investment trust under the provisions of the Investment Company Act of 1940.
The Separate Account exists to keep your life insurance assets separate from our other Company assets. As such, any income, gains, or losses credited to, or charged against, the Separate Account reflect only the Separate Account’s own investment experience. At no time will the Separate Account reflect the investment experience of the Company’s other assets.
We may not use the assets in the Separate Account to pay any liabilities of the Company other than those arising from the VUL policies. We may, however, transfer to our General Investment Account any assets that exceed anticipated obligations of the Separate Account. We are required to pay, from our general assets, if necessary, all amounts promised under the VUL policies. In the event that the assets in the Separate Account exceed the liabilities, the Company may only withdraw seed capital and earned fees and charges.
The Company holds title to the assets of the Separate Account. The Company maintains the records and accounts relating to the Guaranteed Principal Account, the Separate Account, the segment within the Separate Account established to receive and invest premium payments for the policies, and divisions of that segment. The Company’s principal business address is 1295 State Street, Springfield, Massachusetts 01111-0001.
ADDITIONAL INFORMATION ABOUT THE OPERATION OF THE POLICY AND THE REGISTRANT
Purchase of Shares in Underlying Investment Funds
Shares are purchased and redeemed at net asset value. Fund dividends and capital gain distributions are automatically reinvested, unless the Company, on behalf of the Separate Account, elects otherwise.
Because the underlying funds are also offered in variable annuity contracts, it is possible that conflicts could arise between the owners of variable life insurance policies and the owners of variable annuity contracts. If a conflict exists, the fund’s board will notify the insurers and take appropriate action to eliminate the conflict. Additionally, if the insurer becomes aware of such conflicts, the insurer will work with the underlying fund’s board to resolve the conflict.
Each year within the 30 days following the Policy Anniversary date, we will provide the policy owner a report showing the following policy information:
| • | the Account Value at the beginning of the previous Policy Year; |
| • | all premiums paid since that time; |
| • | all additions to and deductions from the Account Value during the year; and |
| • | the Account Value, death benefit, Net Surrender Value and Policy Debt as of the current Policy Anniversary. This report may contain additional information if required by any applicable law or regulation. |
2
The policies are no longer for sale to the public. While the policies were offered for sale, they were sold by both registered representatives of MML Investors Services, LLC (MMLIS), a subsidiary of MassMutual, and by registered representatives of other broker-dealers who entered into distribution agreements with MML Strategic Distributors, LLC (MSD), a subsidiary of MassMutual. Pursuant to separate underwriting agreements with the Company, on its own behalf and on behalf of the Separate Account, MMLIS serves as principal underwriter of the policies sold by its registered representatives, and MSD serves as principal underwriter of the policies sold by registered representatives of other broker-dealers who entered into distribution agreements with MSD.
MMLIS and MSD are located at 1295 State Street, Springfield, MA 01111-0001. MMLIS and MSD are registered with the SEC as broker-dealers under the Securities Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority (FINRA).
During the last three years, MMLIS, and MSD were paid the compensation amounts shown below for their actions as principal underwriters for the policies described in the statutory prospectus.
|
Year |
MMLIS |
MSD |
|
2023 |
$174,662 |
$17,246 |
|
2022 |
$169,092 |
$8,271 |
|
2021 |
$81,808 |
$13,251 |
We no longer offer this policy for sale to the public. However, policy owners may continue to make premium payments to their policies.
Commissions
Commissions are a percentage of the premium paid in each year of coverage and differ for premiums paid up to the Target Premium and for premiums paid in excess of the Target Premium. The Target Premium is based on the issue age, gender, and risk classification of the Insured.
Commissions for sales of the policies by MMLIS registered representatives are paid by MassMutual on behalf of MMLIS to its registered representatives. Commissions for sales of the policies by registered representatives of other broker-dealers are paid by MassMutual on behalf of MSD to those broker-dealers.
During the last three years, commissions, as described in the statutory prospectus, were paid by MassMutual through MMLIS and MSD as shown below.
|
Year |
MMLIS |
MSD |
|
2023 |
$867,490 |
$130,819 |
|
2022 |
$900,398 |
$141,897 |
|
2021 |
$1,008,062 |
$191,414 |
Underwriting Procedures
Before issuing a policy we required evidence of insurability. This means that:
| 1. | you had to complete an application and submit it to our Administrative Office; and |
| 2. | we usually required that the Insured have a medical examination. |
Acceptance was subject to completion of all underwriting requirements and our underwriting rules.
Insurance charges will be determined on each Policy Anniversary based on a number of factors including, but not limited to, our expectations for future mortality, investment earnings, persistency and expense results, capital and reserve requirements, taxes, future profits, and other factors unrelated to mortality experience. The insurance charge rate will not exceed those shown on the policy’s specifications pages, which are based on the 1980 Commissioners’ Standard Ordinary Mortality Table (1980 CSO), male or female (unisex rates may be required in some states), the Nonsmoker or Smoker Table, and age of the Insured on their nearest birthday.
Special risk classifications are used when mortality experience in excess of the standard risk classifications is expected. These substandard risks will be charged a higher cost of insurance rate that will not exceed rates based on a number of factors including, but not limited to, a multiple of the 1980 CSO, male or female (unisex rates may be required in some situations), the Nonsmoker or
3
Smoker Table, and age of the Insured on their nearest birthday plus any flat extra amount assessed. The multiple will be based on the Insured’s substandard rating.
There are three non-rated classifications: select preferred, preferred non-tobacco, and preferred tobacco.
A Face Amount increase is accomplished by issuing an additional insurance coverage segment. Each such segment has a distinct issue age and risk classification.
It is possible for risk classifications of prior segments to change in order to match the risk classification of a new segment. In cases where the risk classifications are different, the Company may change the risk classification of prior segments if doing so will reduce the insurance charges associated with the prior segments. However, the Company will not change the risk classifications of prior segments when the Face Amount increase coincides with a conversion of an existing term life insurance policy, unless evidence of insurability acceptable to us is provided. In addition, the Company will not change the risk classifications of prior segments if doing so will increase the insurance charges associated with the prior segments. Changing the risk classifications of prior segments may impact the maximum premium limits, MEC premiums and Minimum Death Benefit under the Cash Value Accumulation Test.
If you increase the Face Amount, the insurance charge and face amount charge will increase. In addition, a separate surrender charge schedule will apply during the first 14 years of the segment’s coverage.
Premium payments received once an increase in Face Amount becomes effective will be allocated to each segment of the Face Amount. The premium allocation will be made on a pro rata basis using the expense premium for each segment. If the Account Value (or the Net Surrender Value if there is Policy Debt) is insufficient to continue the changed policy In Force for three months at the new monthly charges and interest, we will require a premium payment sufficient to increase the Account Value to such an amount.
From time to time, we may report historical performance for the Separate Account Divisions available under the policy. The investment performance figures are calculated using the actual historical performance of the investment options for the periods shown in the report. When applicable, the performance will include periods before the policy was available for sale.
The performance returns in these reports will reflect deductions for management fees and all other operating expenses of the underlying investment funds and an annual deduction for the Mortality and Expense Risk Charge. The returns will not reflect any deductions from premiums, monthly charges assessed against the Account Value of the policies, policy surrender charges, or other policy charges, which, if deducted, would reduce the returns.
From time to time, we may also report actual historical performance of the investment funds underlying each division of the Separate Account. These returns will reflect the fund operating expenses but they will not reflect the Mortality and Expense Risk Charge, any deductions from premiums, monthly charges assessed against the Account Value of the policies, policy surrender charges, or other policy charges. If these expenses and charges were deducted, the rates of return would be significantly lower.
The rates of return we report will not be illustrative of how actual investment performance will affect the benefits under the policy. Neither are they necessarily indicative of future performance. Actual rates may be higher or lower than those reported.
We currently post investment performance reports for VUL on our website at www.MassMutual.com. You can also request a copy of the most recent report from your registered representative or by calling our Administrative Office at (800) 272-2216, Monday – Friday, 8 AM to 8 PM Eastern Time. Questions about the information in these reports should be directed to your registered representative.
We may also distribute sales literature that includes historical performance of broad market indices, such as the Standard & Poor’s 500 Stock Index® and the Dow Jones Industrial Average. These indices are provided for informational purposes only.
The financial statements of C.M. Life Variable Life Separate Account I as of December 31, 2023 and for each of the years in the two-year period then ended and the financial highlights for each of the years in the five-year period then ended and the statutory financial statements of C.M. Life Insurance Company (the Company) as of December 31, 2023 and 2022, and for each of the years in the three-year period ended December 31, 2023, each have been included in this Statement of Additional Information herein in reliance upon the reports of KPMG LLP, an independent registered public accounting firm, each of which are also included herein, and upon the authority of said firm as experts in accounting and auditing. KPMG LLP’s report, dated February 27, 2024, states that the Company prepared its financial statements using statutory accounting practices prescribed or permitted by the State of Connecticut Insurance Department (statutory accounting practices), which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, KPMG LLP’s report states that the financial statements of the Company are not intended to be and, therefore,
4
are not presented fairly in accordance with U.S. generally accepted accounting principles and further states that those statements are presented fairly, in all material respects, in accordance with the statutory accounting practices. The principal business address of KPMG LLP is One Financial Plaza, 755 Main Street, Hartford, Connecticut 06103.
The Registrant
Report of Independent Registered Public Accounting Firm
Statement of Assets and Liabilities as of December 31, 2023
Statements of Operations and Changes in Net Assets for the years ended December 31, 2023 and 2022
Notes to Financial Statements
Independent Auditors’ Report
Statutory Statements of Financial Position as of December 31, 2023 and 2022
Statutory Statements of Operations for the years ended December 31, 2023, 2022 and 2021
Statutory Statements of Changes in Shareholder’s Equity for the years ended December 31, 2023, 2022 and 2021
Statutory Statements of Cash Flows for the years ended December 31, 2023, 2022 and 2021
Notes to Statutory Financial Statements
5
C.M. LIFE INSURANCE COMPANY
STATUTORY FINANCIAL STATEMENTS
As of December 31, 2023 and 2022 and
for the years ended December 31, 2023, 2022 and 2021
C.M. LIFE INSURANCE COMPANY
STATUTORY FINANCIAL STATEMENTS
KPMG LLP
One Financial Plaza
755 Main Street
Hartford, CT 06103
Audit Committee of the Board of Directors
C.M. Life Insurance Company:
Opinions
We have audited the financial statements of C.M. Life Insurance Company (the Company), which comprise the statutory statements of financial position as of December 31, 2023 and 2022, and the related statutory statements of operations and changes in capital and surplus, and cash flows for the three-year period ended December 31, 2023, and the related notes to the financial statements.
Unmodified Opinion on Statutory Basis of Accounting
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and 2022, and the results of its operations and its cash flows for the three-year period ended December 31, 2023 in accordance with accounting practices prescribed or permitted by the State of Connecticut Insurance Department described in Note 2.
Adverse Opinion on U.S. Generally Accepted Accounting Principles
In our opinion, because of the significance of the matter discussed in the Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles section of our report, the financial statements do not present fairly, in accordance with U.S. generally accepted accounting principles, the financial position of the Company as of December 31, 2023 and 2022, or the results of its operations or its cash flows for the three-year period ended December 31, 2023.
Basis for Opinions
We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Company and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles
As described in Note 2 to the financial statements, the financial statements are prepared by the Company using accounting practices prescribed or permitted by the State of Connecticut Insurance Department, which is a basis of accounting other than U.S. generally accepted accounting principles. Accordingly, the financial statements are not intended to be presented in accordance with U.S. generally accepted accounting principles. The effects on the financial statements of the variances between the statutory accounting practices described in Note 2 and U.S. generally accepted accounting principles, although not reasonably determinable, are presumed to be material and pervasive.
Emphasis of Matter
As discussed in Note 3 to the financial statements, in 2023, the Company adopted INT 23-01T - Disallowed IMR. Our opinions are not modified with respect to this matter.
| KPMG LLP, a Delaware limited liability partnership and a member firm of | ||
| the KPMG global organization of independent member firms affiliated with | ||
| KPMG International Limited, a private English company limited by guarantee. |
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting practices prescribed or permitted by the State of Connecticut Insurance Department.
Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for one year after the date that the financial statements are issued.
Auditors’ Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS, we:
| ● | Exercise professional judgment and maintain professional skepticism throughout the audit. |
| ● | Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. |
| ● | Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the |
effectiveness of the Company’s internal control. Accordingly, no such opinion is expressed.
| ● | Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. |
| ● | Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Company’s ability to continue as a going concern for a reasonable period of time. |
| 2 |
We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.
/s/ KPMG LLP
Hartford, Connecticut
February 27, 2024
| 3 |
STATUTORY STATEMENTS OF FINANCIAL POSITION
| December 31, | December 31, | |||||
| 2023 | 2022 | |||||
| ($ In Millions, except for par value) | ||||||
| Assets: | ||||||
| Bonds | $ | 2,617 | $ | 3,736 | ||
| Preferred stocks | 5 | 7 | ||||
| Common stock – subsidiary and affiliate | 239 | 275 | ||||
| Common stocks – unaffiliated | 7 | 2 | ||||
| Mortgage loans | 803 | 918 | ||||
| Policy loans | 144 | 146 | ||||
| Partnerships and limited liability companies | 147 | 171 | ||||
| Derivatives | 562 | 724 | ||||
| Cash, cash equivalents and short-term investments | 740 | 57 | ||||
| Other invested assets | 225 | 334 | ||||
| Total invested assets | 5,489 | 6,370 | ||||
| Investment income due and accrued | 84 | 105 | ||||
| Federal income taxes | 37 | 32 | ||||
| Deferred income taxes | 24 | 23 | ||||
| Other than invested assets | 179 | 16 | ||||
| Total assets excluding separate accounts | 5,813 | 6,546 | ||||
| Separate account assets | 1,732 | 1,553 | ||||
| Total assets | $ | 7,545 | $ | 8,099 | ||
| Liabilities: | ||||||
| Policyholders’ reserves | $ | 3,179 | $ | 3,709 | ||
| Liabilities for deposit-type contracts | 56 | 68 | ||||
| Contract claims and other benefits | 10 | 8 | ||||
| Transfers due from separate accounts | (1) | (2) | ||||
| Payable to parent | 17 | 24 | ||||
| Asset valuation reserve | 76 | 93 | ||||
| Collateral | 87 | 203 | ||||
| Derivatives | 279 | 480 | ||||
| Other liabilities | 205 | 183 | ||||
| Total liabilities excluding separate accounts | 3,908 | 4,766 | ||||
| Separate account liabilities | 1,732 | 1,553 | ||||
| Total liabilities | 5,640 | 6,319 | ||||
| Capital and Surplus: | ||||||
| Common stock, $200 par value 50,000 shares authorized, 12,500 shares issued and outstanding | 3 | 3 | ||||
| Paid-in and contributed surplus | 450 | 450 | ||||
| Surplus | 1,452 | 1,327 | ||||
| Total capital and surplus | 1,905 | 1,780 | ||||
| Total liabilities and capital and surplus | $ | 7,545 | $ | 8,099 | ||
See accompanying notes to statutory financial statements
| 4 |
STATUTORY STATEMENTS OF OPERATIONS
| Years Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Revenue: | ||||||||
| Premium income | $ | 127 | $ | 224 | $ | 277 | ||
| Net investment income | 211 | 268 | 280 | |||||
| Fees and other income | 77 | 99 | 100 | |||||
| Total revenue | 415 | 591 | 657 | |||||
| Benefits, expenses and other deductions: | ||||||||
| Policyholders’ benefits | 914 | 641 | 618 | |||||
| Change in policyholders’ reserves | (634) | (276) | (168) | |||||
| General insurance expenses | 42 | 60 | 65 | |||||
| Commissions | 21 | 37 | 41 | |||||
| State taxes, licenses and fees | 7 | 9 | 9 | |||||
| Other deductions | 1 | (23) | (5) | |||||
| Total benefits, expenses and other deductions | 351 | 448 | 560 | |||||
| Net gain from operations before federal income taxes | 64 | 143 | 97 | |||||
| Federal income tax expense | 8 | 19 | 11 | |||||
| Net gain from operations | 56 | 124 | 86 | |||||
| Net realized capital (losses) gains | (15) | 16 | 2 | |||||
| Net income | $ | 41 | $ | 140 | $ | 88 | ||
See accompanying notes to statutory financial statements
| 5 |
STATUTORY STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
| Years Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Capital and surplus, beginning of year | $ | 1,780 | $ | 1,634 | $ | 1,739 | ||
| Net increase due to: | ||||||||
| Net income | 41 | 140 | 88 | |||||
| Change in net unrealized capital gains (losses) | (6) | 169 | (10) | |||||
| Change in net unrealized foreign exchange capital gains (losses), net of tax | 27 | (49) | (18) | |||||
| Change in other net deferred income taxes | 14 | 35 | 14 | |||||
| Change in nonadmitted assets | 38 | (41) | 3 | |||||
| Change in asset valuation reserve | 17 | 12 | (2) | |||||
| Prior period adjustments | (5) | - | - | |||||
| Dividend paid | - | (163) | (173) | |||||
| Contributions received | - | 50 | - | |||||
| Other | (1) | (7) | (7) | |||||
| Net increase | 125 | 146 | (105) | |||||
| Capital and surplus, end of year | $ | 1,905 | $ | 1,780 | $ | 1,634 | ||
See accompanying notes to statutory financial statements
| 6 |
STATUTORY STATEMENTS OF CASH FLOWS
| Years Ended | ||||||||
| December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Cash from operations: | ||||||||
| Premium and other income collected | $ | 198 | $ | 317 | $ | 383 | ||
| Net investment income | 220 | 247 | 287 | |||||
| Benefit payments | (919) | (625) | (643) | |||||
| Net transfers from separate accounts | 100 | 106 | 149 | |||||
| Commissions and other expenses | (58) | (99) | (123) | |||||
| Federal and foreign income taxes paid | (5) | (39) | (24) | |||||
| Net cash (applied to) from operations | (464) | (93) | 29 | |||||
| Cash from investments: | ||||||||
| Proceeds from investments sold, matured or repaid: | ||||||||
| Bonds | 1,327 | 727 | 873 | |||||
| Preferred and common stocks – unaffiliated | - | 4 | 7 | |||||
| Common stocks – affiliated | 19 | - | - | |||||
| Mortgage loans | 173 | 161 | 130 | |||||
| Partnerships and limited liability companies | 31 | 41 | 19 | |||||
| Derivatives | (13) | (168) | (21) | |||||
| Other | 109 | (46) | 64 | |||||
| Total investment proceeds | 1,646 | 719 | 1,072 | |||||
| Cost of investments acquired: | ||||||||
| Bonds | (231) | (528) | (802) | |||||
| Preferred and common stocks – unaffiliated | - | (1) | (5) | |||||
| Common stocks – affiliated | - | (1) | (2) | |||||
| Mortgage loans | (61) | (37) | (234) | |||||
| Partnerships and limited liability companies | (17) | (32) | (25) | |||||
| Derivatives | - | (12) | (8) | |||||
| Total investments acquired | (309) | (611) | (1,076) | |||||
| Net increase in policy loans | 1 | - | 7 | |||||
| Net cash from investing activities | 1,338 | 108 | 3 | |||||
| Cash from financing and miscellaneous sources: | ||||||||
| Net (withdrawals) deposits on deposit-type contracts | (14) | (6) | 1 | |||||
| Change in collateral | (162) | 37 | (83) | |||||
| Dividend paid | - | (163) | (173) | |||||
| Contribution received | 50 | - | ||||||
| Other cash (used) provided | (15) | (22) | 34 | |||||
| Net cash (used in) from financing and miscellaneous sources | (191) | (104) | (221) | |||||
| Net change in cash, cash equivalents and short-term investments | 683 | (89) | (189) | |||||
| Cash, cash equivalents and short-term investments, beginning of year | 57 | 146 | 335 | |||||
| Cash, cash equivalents and short-term investments, end of year | $ | 740 | $ | 57 | $ | 146 | ||
See accompanying notes to statutory financial statements
| 7 |
NOTES TO STATUTORY FINANCIAL STATEMENTS
These statutory financial statements include C.M. Life Insurance Company (the Company), a wholly owned stock life insurance subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual). The Company is domiciled in the State of Connecticut. It provides life insurance and annuities to individuals and group life insurance to institutions.
Massachusetts Mutual Life Insurance Company (MassMutual or the Company), a mutual life insurance company domiciled in the Commonwealth of Massachusetts, and its domestic life insurance subsidiaries provide individual and group life insurance, disability insurance (DI), individual and group annuities and guaranteed interest contracts (GIC) to individual and institutional customers in all 50 states of the United States of America (U.S.), the District of Columbia and Puerto Rico. Products and services are offered primarily through the Company’s MassMutual Financial Advisors (MMFA), MassMutual Strategic Distributors (MMSD), Institutional Solutions (IS) and Worksite distribution channels.
MMFA is a sales force of financial professionals that operate in the U.S. MMFA sells individual life, individual annuities, hybrid life and long-term care (LTC) and DI. The Company’s MMSD channel sells life insurance, disability, annuity, and hybrid life and LTC solutions through a network of third-party distribution partners. The Company’s IS distribution channel places group annuities, life insurance and GIC primarily through retirement advisory firms, actuarial consulting firms, investment banks, insurance benefit advisors and investment management companies. The Company’s Worksite channel works with advisors and employers across the country to provide American workers with voluntary and executive benefits such as group whole life, critical illness, accident insurance and DI, through the workplace.
2. Summary of significant accounting policies
a. Basis of presentation
The statutory financial statements have been prepared in conformity with the statutory accounting practices of the National Association of Insurance Commissioners (NAIC) and the accounting practices prescribed or permitted by the State of Connecticut Insurance Department (the Department).
Statutory accounting principles are different in some respects from financial statements prepared in accordance with U.S. generally accepted accounting principles (U.S. GAAP). The more significant differences between statutory accounting principles and U.S. GAAP are as follows:
Invested assets
| • | Bonds are generally carried at amortized cost, whereas U.S. GAAP reports bonds at fair value for bonds available for sale and trading or at amortized cost for bonds held to maturity (HTM) |
| • | Changes in the fair value of derivative financial instruments are recorded as changes in capital and surplus, whereas U.S. GAAP generally reports these changes as revenue unless deemed an effective hedge |
| • | Embedded derivatives are recorded as part of the underlying contract, whereas U.S. GAAP would identify and bifurcate certain embedded derivatives from the underlying contract or security and account for them separately at fair value |
| • | Income recognition on partnerships and limited liability companies, which are accounted for under the equity method, is limited to the amount of cash distribution, whereas U.S. GAAP is without limitation |
| • | Certain majority-owned subsidiaries are accounted for using the equity method, whereas U.S. GAAP would consolidate these entities |
| • | Starting on January 1, 2022, the Company adopted the current expected credit loss (CECL) impairment model for U.S. GAAP, which only applies to financial assets carried at amortized cost, including mortgage loans, equipment loans, HTM debt securities, and trade, lease, reinsurance and other receivables. CECL is based on expected credit losses rather than incurred losses. All financial assets within scope of CECL will have a credit loss allowance. The adopted guidance also changes the incurred loss model on AFS debt securities to be an allowance for credit losses with potential recoverability Refer to Note 2z. “Net realized capital (losses) gains |
| 8 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining other-than-temporary impairments (OTTI)
Policyholders’ liabilities
| • | Statutory policy reserves are based upon prescribed methods, such as the Commissioners’ Reserve Valuation Method, Commissioners’ Annuity Reserve Valuation Method or net level premium method, and prescribed statutory mortality, morbidity and interest assumptions at the time of issuance, whereas U.S. GAAP policy reserves would generally be based upon the net level premium method or the estimated gross margin method with estimates, at time of issuance, of future mortality, morbidity, persistency and interest |
| • | Liabilities for policyholders’ reserves, unearned premium, and unpaid claims are presented net of reinsurance ceded, whereas U.S. GAAP would present the liabilities on a direct basis and report an asset for the amounts recoverable or due from reinsurers |
| • | Payments received for universal and variable life insurance products, certain variable and fixed deferred annuities and group annuity contracts are reported as premium income and corresponding change in reserves, whereas U.S. GAAP would treat these payments as deposits to policyholders’ account balances |
General insurance expenses and commissions
| • | Certain acquisition costs, such as commissions and other variable costs, directly related to successfully acquiring new business are charged to current operations as incurred, whereas U.S. GAAP generally would capitalize these expenses and amortize them based on profit emergence over the expected life of the policies or over the premium payment period |
Net realized capital (losses) gains
| • | After-tax realized capital (losses) gains that result from changes in the overall level of interest rates for all types of fixed-income investments and interest-related hedging activities are deferred into the interest maintenance reserve (IMR) and amortized into revenue, whereas U.S. GAAP reports these gains and losses as revenue |
Capital and surplus
| • | Changes in the balances of deferred income taxes, which provide for book versus tax temporary differences, are subject to limitation and are recorded in surplus, whereas U.S. GAAP would generally include the change in deferred taxes in net income without limitation |
| • | Assets are reported at admitted asset value and assets designated as nonadmitted are excluded through a charge against surplus, whereas U.S. GAAP recognizes all assets, net of any valuation allowances |
| • | An asset valuation reserve (AVR) is reported as a contingency reserve to stabilize surplus against fluctuations in the statement value of partnerships and limited liability companies and certain common stocks as well as credit-related changes in the value of bonds, mortgage loans and certain derivatives, whereas U.S. GAAP does not record this reserve |
| • | Changes to the mortgage loan valuation allowance are recognized in net unrealized capital gains (losses), net of tax, in the Consolidated Statutory Statements of Changes in Capital and Surplus, whereas U.S. GAAP follows the CECL impairment model effective 1/1/2022 |
| • | Statutory Statements of Changes in Capital and Surplus includes net income, change in net unrealized capital gains (losses), change in net unrealized foreign exchange capital gains (losses), change in other net deferred income taxes, change in nonadmitted assets, change in AVR, prior period adjustments, whereas U.S. GAAP presents net income as retained earnings and net unrealized capital gains (losses), change in net unrealized foreign exchange capital gains (losses) as other comprehensive income |
| • | The change in the fair value for unaffiliated common stock is recorded in surplus, whereas the change in the fair value for ownership interests in an entity not accounted for under the equity method or consolidated are recorded in revenue for U.S. GAAP |
| 9 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The preparation of financial statements requires management to make estimates and assumptions that impact the reported amounts of assets and liabilities, the disclosure of assets and liabilities as of the date of the statutory financial statements and the reported amounts of revenues and expenses during the reporting periods. The most significant estimates include those used in determining the carrying values of investments including the amount of mortgage loan investment valuation reserves, OTTI, the liabilities for policyholders’ reserves, the determination of admissible deferred tax assets (DTA), the liability for taxes and the liability for litigation or other contingencies. Future events including, but not limited to, changes in the level of mortality, morbidity, interest rates, persistency, asset valuations and defaults could cause results to differ from the estimates used in the statutory financial statements. Although some variability is inherent in these estimates, management believes the amounts presented are appropriate.
b. Corrections of errors and reclassifications
For the years ended December 31, 2023 and 2022, corrections of prior years’ errors were recorded in surplus, net of tax:
| Years Ended December 31, 2023 and 2022 | |||||||||||||||||
| Increase (Decrease) to: | |||||||||||||||||
| Prior | Current | Asset | |||||||||||||||
| Years’ | Year | or Liability | |||||||||||||||
| Net Income | Surplus | Balances | |||||||||||||||
| (In Millions) | |||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Investment income due and accrued | $ | (2) | $ | - | $ | (2) | $ | - | $ | (2) | $ | - | |||||
| Policyholders’ reserves | (3) | (1) | (3) | (1) | 3 | 1 | |||||||||||
| Total | $ | (5) | $ | (1) | $ | (5) | $ | (1) | |||||||||
c. Bonds
Bonds are generally valued at amortized cost using the constant yield interest method with the exception of NAIC Category 6 bonds, which are in or near default, and certain residential mortgage-backed securities (RMBS) and commercial mortgage-backed securities (CMBS), which are rated by outside modelers, which are carried at the lower of amortized cost or fair value. NAIC ratings are applied to bonds and other investments. Categories 1 and 2 are considered investment grade, while Categories 3 through 6 are considered below investment grade. Bonds are recorded on a trade date basis, except for private placement bonds, which are recorded on the funding date.
For loan-backed and structured securities, such as asset-backed securities (ABS), mortgage-backed securities (MBS), including RMBS and CMBS, and structured securities, including collateralized debt obligations (CDOs), amortization or accretion is revalued quarterly based on the current estimated cash flows, using either the prospective or retrospective adjustment methodologies.
Fixed income securities, with the highest ratings from a rating agency follow the retrospective method of accounting.
All other fixed income securities, such as floating rate bonds and interest only securities, including those that have been impaired, follow the prospective method of accounting.
The fair value of bonds is based on quoted market prices when available. If quoted market prices are not available, values provided by other third-party organizations are used. If values provided by other third-party organizations are unavailable, fair value is estimated using internal models by discounting expected future cash flows using observable current market rates applicable to yield, credit quality and maturity of the investment or using quoted market values for comparable investments. Internal inputs used in the determination of fair value include estimated prepayment speeds, default rates, discount rates and collateral values, among others. Structure characteristics and cash flow priority are also considered. Fair values resulting from internal models are those expected to be received in an orderly
| 10 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
transaction between willing market participants. Statutory accounting continues to utilize the other-than-temporary impairment(s) (OTTI) model described in Note 2y.
d. Preferred stocks
Preferred stocks in good standing, those that are rated Categories 1 through 3 by the Securities Valuation Office (SVO) of the NAIC, are generally valued at amortized cost. Preferred stocks not in good standing, those that are rated Categories 4 through 6 by the SVO of the NAIC, are valued at the lower of amortized cost or fair value. Fair values are based on quoted market prices, when available. If quoted market prices are not available, values provided by third-party organizations are used. If values provided by third-party organizations are unavailable, fair value is estimated using internal models. These models use inputs not directly observable or correlated with observable market data. Typical inputs integrated into the Company’s internal discounted expected earnings models include, but are not limited to, earnings before interest, taxes, depreciation and amortization estimates. Fair values resulting from internal models are those expected to be received in an orderly transaction between willing market participants.
Refer to Note 2y. “Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining OTTI.
e. Common stock - subsidiary and affiliate
The Company accounts for the value of its subsidiary and affiliate, primarily, MML Bay State Life Insurance Company (MML Bay State), a wholly owned stock life insurance subsidiary, at their underlying statutory net equity. MML Bay State’s operating results, less dividends declared, are reflected as net unrealized capital gains in the Statutory Statements of Changes in Capital and Surplus. Dividends are recorded in net investment income when declared. The cost basis of common stock – subsidiary and affiliate is adjusted for impairments deemed to be other than temporary consistent with common stocks - unaffiliated.
f. Common stocks - unaffiliated
Unaffiliated common stocks are carried at fair value, which is based on quoted market prices when available. If quoted market prices are not available, values provided by third-party organizations are used. If values from third parties are unavailable, fair values are determined by management using estimates based upon internal models. The Company’s internal models include estimates based upon comparable company analysis, review of financial statements, broker quotes and last traded price. Fair values resulting from internal models are those expected to be received in an orderly transaction between willing market participants.
Refer to Note 2y. “Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining OTTI.
g. Mortgage loans
Mortgage loans are valued at the unpaid principal balance of the loan, net of unamortized premium, discount, mortgage origination fees and valuation allowances. Interest income earned on impaired loans is accrued on the outstanding principal balance of the loan based on the loan’s contractual coupon rate. Interest is not accrued for (a) impaired loans more than 60 days past due, (b) delinquent loans more than 90 days past due, or (c) loans that have interest that is not expected to be collected. The Company continually monitors mortgage loans where the accrual of interest has been discontinued, and will resume the accrual of interest on a mortgage loan when the facts and circumstances of the borrower and property indicate that the payments will continue to be received according to the terms of the original or modified mortgage loan agreement.
Refer to Note 2y. “Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining OTTI.
| 11 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
h. Policy loans
Policy loans are carried at the outstanding loan balance less amounts unsecured by the cash surrender value of the policy and amounts ceded to reinsurers.
i. Partnerships and limited liability companies
Partnerships and limited liability companies, except for partnerships that generate and realize low income housing tax credits (LIHTCs), are accounted for using the equity method with the change in the equity value of the underlying investment recorded in surplus. Distributions received are recognized as net investment income to the extent the distribution does not exceed previously recorded accumulated undistributed earnings.
Investments in partnerships that generate LIHTCs are carried at amortized cost unless considered impaired. Under the amortized cost method, the excess of the carrying value of the investment over its estimated residual value is amortized into net investment income during the period in which tax benefits are recognized.
The equity method is suspended if the carrying value of the investment is reduced to zero due to losses from the investment. Once the equity method is suspended, losses are not recorded until the investment returns to profitability and the equity method is resumed. However, if the Company has guaranteed obligations of the investment or is otherwise committed to provide further financial support for the investment, losses will continue to be reported up to the amount of those guaranteed obligations or commitments.
Refer to Note 2y. “Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)” for information on the Company’s policy for determining OTTI.
j. Derivatives
Derivatives are carried at fair value, which is based primarily upon quotations obtained from counterparties and independent sources. These quotations are compared to internally derived prices and a price challenge is lodged with the counterparties and independent sources when a significant difference cannot be explained by appropriate adjustments to the internal model. When quoted market values are not reliable or available, the value is based on an internal valuation process using market observable inputs that other market participants would use. Changes in the fair value of these instruments are recorded as unrealized capital gains (losses) in surplus. Gains and losses realized on settlement, termination, closing or assignment of contracts are recorded in net realized (losses) gains. Amounts receivable and payable are accrued as net investment income.
k. Cash, cash equivalents and short-term investments
Cash and cash equivalents, which are carried at amortized cost, consist of all highly liquid investments purchased with original maturities of three months or less.
Short-term investments, which are carried at amortized cost, consist of short-term bonds and all highly liquid investments purchased with maturities of greater than three months and less than or equal to 12 months.
The carrying value reported in the Statutory Statements of Financial Position for cash, cash equivalents and short-term investment instruments approximates the fair value.
| 12 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
l. Investment income due and accrued
Accrued investment income consists primarily of interest, which is recognized on an accrual basis.
m. Other than invested assets
Other than invested assets primarily includes deferred and uncollected life insurance premium, reinsurance recoverables and other receivables.
n. Separate accounts
Separate accounts and sub-accounts accounts are segregated funds administered and invested by the Company, the performance of which primarily benefits the policyholders/contract holders with an interest in the separate accounts. Group and individual variable annuity, variable life and other insurance policyholders/contract holders select from among the separate accounts and sub-accounts made available by the Company. The separate accounts and sub-accounts are offered as investment options under certain insurance contracts or policies. The returns produced by separate account assets increase or decrease separate account reserves. Separate account assets consist principally of marketable securities reported at fair value. Separate account assets can only be used to satisfy separate account liabilities and are not available to satisfy the general obligations of the Company. Separate account administrative and investment advisory fees are included in fees and other income.
The Company has only separate accounts classified as nonguaranteed for which the policyholder/contract holder assumes the investment risk.
Premium income, benefits and expenses of the separate accounts are included in the Statutory Statements of Operations with the offset recorded in the change in policyholders’ reserves. Investment income, realized capital gains (losses) and unrealized capital gains (losses) on the assets of separate accounts accrue to policyholders/contract holders and are not recorded in the Statutory Statements of Operations.
o. Nonadmitted assets
Assets designated as nonadmitted by the NAIC primarily include the amount of DTAs (subject to certain limitations) that will not be realized by the end of the third calendar year following the current year end, certain investments in partnerships and limited liability companies for which qualifying audits are not performed, advances and prepayments, investment income due and accrued, and certain other receivables. Assets that are designated as nonadmitted are excluded from the Statutory Statements of Financial Position through a charge against shareholder’s equity.
p. Reinsurance
The Company enters into reinsurance agreements with affiliated and unaffiliated insurers in the normal course of business to limit its insurance risk.
Premium income, benefits to policyholders (including unpaid claims) and policyholders’ reserves are reported net of reinsurance. Premium, benefits and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. The Company records a receivable for reinsured benefits paid, but not yet reimbursed by the reinsurer and reduces policyholders’ reserves for the portion of insurance liabilities that are reinsured. Commissions and expense allowances on reinsurance ceded are recorded as revenue.
q. Policyholders’ reserves
Policyholders’ reserves are developed by actuarial methods that will provide for the present value of estimated future obligations in excess of estimated future premium on policies in force and are determined based on either statutory prescribed mortality/morbidity tables using specified interest rates and valuation methods, or principles-based reserving under Valuation Manual VM-20 which considers a wide range of future economic conditions, computed using justified company experience factors, such as mortality, policyholder behavior and expenses.
| 13 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
On January 1, 2020, the Company transitioned from Actuarial Guideline 43 to VM-21 for valuing guaranteed living benefits on certain annuity products for statutory reserves
Certain variable universal life and universal life contracts include features such as guaranteed minimum death benefits (GMDB) or other guarantees that ensure continued death benefit coverage when the policy would otherwise lapse. The value of the guarantee is only available to the beneficiary in the form of a death benefit. The liability for variable and universal life GMDBs and other guarantees is included in policyholders’ reserves and the related change in this liability is included in change in policyholders’ reserves in the Statutory Statements of Operations.
The fixed index annuity (FIA) product offers guaranteed lifetime withdrawal benefit (GLWB). A GLWB provides the annuity contract holder with a guarantee that a minimum amount will be available for withdrawal annually for life regardless of the contract value.
Certain individual variable annuity and fixed annuity products offer GMDBs. The liability for GMDBs is included in policyholders’ reserves and the related change in this liability is included in change in policyholders’ reserves in the Statutory Statement of Operations.
Tabular interest, tabular reserves, reserves released, and tabular cost for all life and annuity contracts and supplementary contracts involving life contingencies are determined in accordance with NAIC Annual Statement instructions. For tabular interest, whole life and term products use a formula that applies a weighted average interest rate determined from a seriatim valuation file to the mean average reserves. Universal life, variable life, group life, annuity and supplemental contracts use a formula that applies a weighted average credited rate to the mean account value. For contracts without an account value (e.g., a Single Premium Immediate Annuity) a weighted average statutory valuation rate is applied to the mean statutory reserve or accepted actuarial methods using applicable interest rates are applied.
All policyholders’ reserves and accruals are presented net of reinsurance. Management believes that these liabilities and accruals represent management’s best estimate and will be sufficient, in conjunction with future revenues, to meet future anticipated obligations of policies and contracts in force.
r. Liabilities for deposit-type contracts
Liabilities for investment-type contracts such as supplementary contracts not involving life contingencies are based on account value or accepted actuarial methods using applicable interest rates.
s. Transfers due from separate accounts
Transfers due from separate accounts represent a net receivable from the Company’s separate accounts.
t. Federal income taxes
Total federal income taxes are based upon the Company’s best estimate of its current and DTAs or liabilities. Current tax expense (benefit) is reported in the Statutory Statements of Operations as federal income tax expense (benefit) if resulting from operations and within net realized capital (losses) gains if resulting from invested asset transactions. Changes in the balances of deferred taxes, which provide for book-to-tax temporary differences, are subject to limitations and are reported within various lines within surplus. Accordingly, the reporting of book-to-tax temporary differences, such as reserves and policy acquisition costs, and of book-to-tax permanent differences, such as tax-exempt interest and tax credits, results in effective tax rates in the Statutory Statements of Operations that differ from the federal statutory tax rate.
| 14 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
u. Asset valuation reserve
The Company maintains an AVR that is a contingency reserve to stabilize shareholder’s equity against fluctuations in the carrying value of common stocks, real estate, partnerships and limited liability companies as well as credit-related changes in the value of bonds, preferred stocks, mortgage loans, and certain derivatives. The AVR is reported as a liability within the Statutory Statements of Financial Position and the change in AVR, net of tax, is reported within the Statutory Statements of Changes in Capital and Surplus.
v. Repurchase agreements
Repurchase agreements are contracts under which the Company sells securities and simultaneously agrees to repurchase the same or substantially the same securities. These repurchase agreements are carried at cost and accounted for as collateralized borrowings with the proceeds from the sale of the securities recorded as a liability while the underlying securities continue to be recorded as an investment by the Company. Earnings on these investments are recorded as investment income and the difference between the proceeds and the amount at which the securities will be subsequently reacquired is amortized as interest expense. Repurchase agreements are used as a tool for overall portfolio management to help ensure the Company maintains adequate assets in order to provide yield, spread and duration to support liabilities and other corporate needs.
The Company provides collateral, as dictated by the repurchase agreements, to the counterparty in exchange for a loan. If the fair value of the securities sold becomes less than the loan, the counterparty may require additional collateral.
The carrying value reported in the Statutory Statements of Financial Position for repurchase agreements approximates the fair value.
w. Interest maintenance reserve
The Company maintains an IMR that is used to stabilize net income against fluctuations in interest rates. After-tax realized capital (losses) gains, which result from changes in interest rates for all types of fixed-income investments and interest-related derivatives, are deferred into the IMR and amortized into net investment income using the grouped amortization method. In the grouped amortization method, assets are grouped based on years of maturity. IMR is reduced by the amount ceded to reinsurers when entering into in force coinsurance ceding agreements. The IMR is included in other liabilities, or if negative, is recorded as a nonadmitted asset.
x. Other liabilities
Other liabilities primarily consist of interest due on derivatives, affiliated payables and remittances and items not allocated.
y. Premium and related expense recognition
Life insurance premium revenue is generally recognized annually on the anniversary date of the policy. However, premium for flexible products, primarily universal life and variable universal life contracts, is recognized as revenue when received. Annuity premium is recognized as revenue when received.
Premium revenue is adjusted by the related deferred premium adjustment. Deferred premium adjusts for the overstatement created in the calculation of reserves as the reserve computation assumes the entire year’s net premium is collected annually at the beginning of the policy year and does not take into account installment or modal payments. Commissions and other costs related to issuance of new policies and policy maintenance and settlement costs are charged to current operations when incurred. Surrender fee charges on certain life and annuity products are recorded as a reduction of benefits and expenses.
| 15 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
z. Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)
Realized capital (losses) gains, net of taxes, exclude gains (losses) deferred into the IMR and gains (losses) of the separate accounts. Realized capital (losses) gains, including OTTI, are recognized in net income and are determined using the specific identification method.
Bonds - general
The Company employs a systematic methodology to evaluate OTTI by conducting a quarterly analysis of bonds. OTTI is evaluated in a manner consistent with market participant assumptions. The Company considers the following factors, where applicable depending on the type of securities, in the evaluation of whether a decline in value is other than temporary: (a) the likelihood that the Company will be able to collect all amounts due according to the contractual terms of the debt security; (b) the present value of the expected future cash flows of the security; (c) the characteristics, quality and value of the underlying collateral or issuer securing the position; (d) collateral structure; (e) the length of time and extent to which the fair value has been below amortized cost; (f) the financial condition and near-term prospects of the issuer; (g) adverse conditions related to the security or industry; (h) the rating of the security; (i) the Company’s ability and intent to hold the investment for a period of time sufficient to allow for an anticipated recovery to amortized cost; and (j) other qualitative and quantitative factors in determining the existence of OTTI including, but not limited to, unrealized loss trend analysis and significant short-term changes in value.
In addition, if the Company has the intent to sell, or the inability, or lack of intent to retain the investment for a period sufficient to recover the amortized cost basis, an OTTI is recognized as a realized loss equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date.
When a bond is other-than-temporarily impaired, a new cost basis is established.
Bonds - corporate
For corporate securities, if it is determined that a decline in the fair value of a bond is other than temporary, OTTI is recognized as a realized loss equal to the difference between the investment’s amortized cost basis and, generally, its fair value at the balance sheet date.
The Company analyzes investments whose fair value is below the cost for impairment. Generally, if the investment experiences significant credit or interest rate related deterioration, the cost of the investment is not recoverable, or the Company intends to sell the investment before anticipated recovery, an OTTI is recognized as realized investment loss.
Bonds - loan-backed and structured securities
For loan-backed and structured securities, if the present value of cash flows expected to be collected is less than the amortized cost basis of the security, an OTTI is recognized as a realized loss equal to the difference between the investment’s amortized cost basis and the present value of cash flows expected to be collected. The expected cash flows are discounted at the security’s effective interest rate. Internal inputs used in determining the amount of the OTTI on structured securities include collateral performance, prepayment speeds, default rates, and loss severity based on borrower and loan characteristics, as well as deal structure including subordination, over-collateralization and cash flow priority.
ABS and MBS are evaluated for OTTI using scenarios and assumptions based on the specifics of each security including collateral type, loan type, vintage and subordination level in the structure. Cash flow estimates are based on these assumptions and inputs obtained from external industry sources along with internal analysis and actual experience. Where applicable, assumptions include prepayment speeds, default rates and loss severity, weighted average maturity and changes in the underlying collateral values.
| 16 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The Company has a review process for determining if CDOs are at risk for OTTI. For the senior, mezzanine and junior debt tranches, cash flows are modeled using multiple scenarios based on the current ratings and values of the underlying corporate credit risks and incorporating prepayment and default assumptions that vary according to collateral attributes of each CDO. The prepayment and default assumptions are varied within each model based upon rating (base case), historical expectations (default), rating change improvement (optimistic), rating change downgrade (pessimistic) and fair value (market). The default rates produced by these multiple scenarios are assigned an expectation weight according to current market and economic conditions and fed into a final scenario. OTTI is recorded if this final scenario results in the loss of any principal or interest payments due.
For the most subordinated junior CDO tranches, the present value of the projected cash flows in the final scenario is measured using an effective yield. If the current book value of the security is greater than the present value measured using an effective yield, an OTTI is taken in an amount sufficient to produce its effective yield. Certain CDOs cannot be modeled using all of the scenarios because of limitations on the data needed for all scenarios. The cash flows for these CDOs, including foreign currency denominated CDOs, are projected using a customized scenario management believes is reasonable for the applicable collateral pool.
For loan-backed and structured securities, any difference between the new amortized cost basis and any increased present value of future cash flows expected to be collected is accreted into net investment income over the expected remaining life of the bond.
Common and preferred stock
The cost basis of common and preferred stocks is adjusted for impairments deemed to be other than temporary. The Company considers the following factors in the evaluation of whether a decline in value is other than temporary: (a) the financial condition and near-term prospects of the issuer; (b) the Company’s ability and intent to retain the investment for a period sufficient to allow for a near-term recovery in value; and (c) the period and degree to which the value has been below cost. The Company conducts a quarterly analysis of issuers whose common or preferred stock is not-in-good standing or valued below 80% of cost. The Company also considers other qualitative and quantitative factors in determining the existence of OTTI including, but not limited to, unrealized loss trend analysis and significant short-term changes in value.
Mortgage loans
The Company performs internal reviews at least annually to determine if individual mortgage loans are performing or nonperforming. The fair values of performing mortgage loans are estimated by discounting expected future cash flows using current interest rates for similar loans with similar credit risk. For nonperforming loans, the fair value is the estimated collateral value of the underlying real estate. If foreclosure is probable, the Company will obtain an external appraisal.
Mortgage loans are considered to be impaired when, based upon current available information and events, it is probable that the Company will be unable to collect all amounts of principal and interest due according to the contractual terms of the mortgage loan agreement. A valuation allowance is recorded on a loan-by-loan basis in net unrealized capital losses for the excess of the carrying value of the mortgage loan over the fair value of its underlying collateral. Such information or events could include property performance, capital budgets, future lease roll, a property inspection as well as payment trends. Collectability and estimated decreases in collateral values are also assessed on a loan-by-loan basis considering all events and conditions relevant to the loan. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revisions as more information becomes available, as changes occur in the market or as negotiations with the borrowing entity evolve. If there is a change in the fair value of the underlying collateral or the estimated loss on the loan, the valuation allowance is adjusted accordingly. An OTTI occurs upon the realization of a credit loss, typically through foreclosure or after a decision is made to accept a discounted payoff, and is recognized in realized capital losses. The previously recorded valuation allowance is reversed from unrealized capital losses. When an OTTI is recorded, a new cost basis is established reflecting estimated value of the collateral.
| 17 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Real estate
For real estate held for the production of income, depreciated cost is adjusted for impairments whenever events or changes in circumstances indicate the carrying amount of the asset may not be recoverable, with the impairment being included in realized capital losses. An impairment is recorded when the property’s estimated future net operating cash flows over ten years, undiscounted and without interest charges, is less than book value.
Adjustments to the carrying value of real estate held for sale are recorded in a valuation reserve as realized capital losses when the fair value less estimated selling costs is less than the carrying value.
Partnerships and limited liability companies
When it is probable that the Company will be unable to recover the outstanding carrying value of an investment based on undiscounted cash flows, or there is evidence indicating an inability of the investee to sustain earnings to justify the carrying value of the investment, OTTI is recognized in realized capital losses reflecting the excess of the carrying value over the estimated fair value of the investment. The estimated fair values of limited partnership interests are generally based on the Company’s share of the net asset value (NAV) as provided in the financial statements of the investees. In certain circumstances, management may adjust the NAV by a premium or discount when it has sufficient evidence to support applying such adjustments.
For determining impairments in partnerships that generate LIHTCs, the Company uses the present value of all future benefits, the majority of which are tax credits, discounted at a risk-free rate for future benefits of ten or more years and compares the results to its current book value. Impairments are recognized in realized capital losses reflecting the excess of the carrying value over the estimated fair value of the investment.
Unrealized capital gains (losses)
Unrealized capital gains (losses) include changes in the fair value of derivatives, excluding interest rate swaps and credit default index swaps associated with replicated assets; currency translation adjustments on foreign-denominated bonds; changes in the fair value of unaffiliated common stocks; changes in the fair value of bonds and preferred stocks that are carried at fair value; and changes in the inflation adjustments on U.S Treasury inflation-indexed securities. Changes in the Company’s equity investments in partnerships and limited liability companies, including the earnings as reported on the financial statements, earnings recorded as accumulated undistributed earnings, foreign exchange asset valuation and mark-to-market on operating assets, and certain subsidiaries and affiliates are also reported as changes in unrealized capital gains (losses). Unrealized capital gains (losses) are recorded as a change in shareholder’s equity net of tax.
Adoption of new accounting standards
In June 2022, the NAIC adopted modifications to SSAP No. 25, Affiliates and Other Related Parties and SSAP No. 43R, Loan-Backed and Structured Securities, effective December 31, 2022. The modifications clarify application of the existing affiliate definition and incorporate disclosure requirements for all investments that involve related parties, regardless of whether they meet the affiliate definition. The revisions to SSAP No. 43R also included additional clarifications that the investments from any arrangements that results in direct or indirect control, which include but are not limited to control through a servicer, shall be reported as affiliated investments. The modifications did not have a material effect on the Company’s financial statements.
In August 2023, the NAIC adopted INT 23-01T — Disallowed IMR (“INT 23-01T”). INT 23-01T provides optional, limited-term guidance for the assessment of disallowed IMR for up to 10% of adjusted general account capital and surplus. An insurer’s capital and surplus must first be adjusted to exclude certain “soft assets” including net positive goodwill, electronic data processing equipment and operating system software, net deferred tax assets and admitted disallowed IMR. An insurer will only be able to admit the negative IMR if the insurer’s risk-based capital is over 300% authorized control level after adjusting to remove the assets described above.
| 18 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
As adopted, negative IMR may be admitted first in the insurer’s general account and then, if all disallowed IMR in the general account is admitted and the percentage limit is not reached, to the separate account proportionately between insulated and noninsulated accounts. If the insurer can demonstrate historical practice in which acquired gains from derivatives were also reversed to IMR (as liabilities) and amortized, there is no exclusion for derivatives losses. INT 23-01T was adopted by the Company as of September 30, 2023 and will be effective through December 31, 2025. To the extent the Company’s IMR balance is a net negative, the effects of INT 23-01T will be reflected in the Company’s financial position, results of operations, and financial statement disclosures. The Company has adopted this guidance and the adoption resulted in an admitted disallowed IMR $150 million.
In August 2023, the NAIC adopted revisions to clarify and incorporate a new bond definition within disclosures SSAP No. 26 – Bonds, SSAP No. 43 – Asset-Backed Securities, and other related SSAPs, effective January 1, 2025. The revisions were issued in connection with its principle-based bond definition project, the Bond Project.
The Bond Project began in October 2020 through the development of a principle-based bond definition to be used for all securities in determining whether they qualify for reporting on the statutory annual statement Schedule D. Within the new bond definition, bonds are classified as an “issuer credit obligation” or an “asset-backed security.” An “issuer credit obligation” is defined as a bond where repayment is supported by the general creditworthiness of an operating entity, and an “asset-backed security” is defined as a bond issued by an entity created for the primary purpose of raising capital through debt backed by financial assets. The revisions to SSAP No. 26 reflect the principle-based bond definition, and SSAP No. 43 provides accounting and reporting guidance for investments that qualify as asset-backed securities under the new bond definition. Upon adoption, investments that do not qualify as bonds will not be permitted to be reported as bonds on Schedule D, Part 1 thereafter as there will be no grandfathering for existing investments that do not qualify under the revised SSAPs. The Company is currently assessing the impacts of the adopted SSAP No. 26, SSAP No. 43 and other related SSAPs in relation to the financial statements.
In March 2023, the NAIC adopted modifications to SSAP No. 34 – Investment Income Due and Accrued, effective December 31, 2023. The modifications require additional disclosures and data capture related to gross, non-admitted and admitted amounts for interest income due and accrued, deferred interest, and paid-in-kind (PIK) interest.
In August 2023, the NAIC adopted revisions to further clarify the PIK interest disclosure in SSAP No. 34, effective December 31, 2023. The revisions clarify that decreasing amounts to principal balances are first applied to any PIK interest included in the principal balance. The original principal would not be reduced until the PIK interest had been fully eliminated from the balance. The revisions also provide a practical expedient for determining the PIK interest in the cumulative balance by subtracting the original principal/ par value from the current principal/ par value, with the resulting PIK interest not to go less than zero. The modifications did not have a material effect on the Company’s impact of PIK in relation to the financial statements.
| 19 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
4. Fair value of financial instruments
The following presents a summary of the carrying values and fair values of the Company’s financial instruments:
| December 31, 2023 | ||||||||||||||||
| Carrying | Fair | |||||||||||||||
| Value | Value | Level 1 | Level 2 | Level 3 | ||||||||||||
| (In Millions) | ||||||||||||||||
| Financial assets: | ||||||||||||||||
| Bonds: | ||||||||||||||||
| U. S. government and agencies | $ | 3 | $ | 3 | $ | - | $ | 3 | $ | - | ||||||
| States, territories and possessions | 11 | 11 | - | 11 | - | |||||||||||
| Political subdivisions | 14 | 14 | - | 14 | - | |||||||||||
| Special revenue | 71 | 73 | - | 73 | - | |||||||||||
| Industrial and miscellaneous | 2,254 | 2,031 | - | 789 | 1,242 | |||||||||||
| Parent, subsidiaries and affiliates | 264 | 247 | - | 35 | 212 | |||||||||||
| Preferred stocks | 5 | 5 | 1 | - | 4 | |||||||||||
| Common stocks - subsidiaries and affiliates | 6 | 6 | - | - | 6 | |||||||||||
| Common stocks - unaffiliated | 7 | 7 | 4 | - | 3 | |||||||||||
| Mortgage loans - commercial | 642 | 601 | - | - | 601 | |||||||||||
| Mortgage loans - residential | 161 | 146 | - | - | 146 | |||||||||||
| Derivatives: | ||||||||||||||||
| Interest rate swaps | 423 | 182 | - | 182 | - | |||||||||||
| Options | 28 | 28 | - | 28 | - | |||||||||||
| Currency swaps | 62 | 62 | - | 62 | - | |||||||||||
| Forward contracts | 1 | 1 | - | 1 | - | |||||||||||
| Financial futures | 48 | 48 | 48 | - | - | |||||||||||
| Cash, cash equivalents and short-term investments | 740 | 740 | 35 | 705 | - | |||||||||||
| Separate account assets | 1,732 | 1,732 | 1,732 | - | - | |||||||||||
| Financial liabilities: | ||||||||||||||||
| Individual annuity contracts | 2,373 | 2,306 | - | - | 2,306 | |||||||||||
| Supplementary contracts | 49 | 49 | - | - | 49 | |||||||||||
| Derivatives: | ||||||||||||||||
| Interest rate swaps | 255 | 255 | - | 255 | - | |||||||||||
| Options | 16 | 16 | - | 16 | - | |||||||||||
| Currency swaps | 4 | 4 | - | 4 | - | |||||||||||
| Forward contracts | 4 | 4 | - | 4 | - | |||||||||||
Common stock – subsidiary and affiliates does not include MML Bay State, which has a statutory carry value of $233 million.
| 20 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| December 31, 2022 | ||||||||||||||||
| Carrying | Fair | |||||||||||||||
| Value | Value | Level 1 | Level 2 | Level 3 | ||||||||||||
| (In Millions) | ||||||||||||||||
| Financial assets: | ||||||||||||||||
| Bonds: | ||||||||||||||||
| U. S. government and agencies | $ | 3 | $ | 3 | $ | - | $ | 3 | $ | - | ||||||
| States, territories and possessions | 12 | 12 | - | 12 | - | |||||||||||
| Political subdivisions | 14 | 14 | - | 14 | - | |||||||||||
| Special revenue | 76 | 76 | - | 76 | - | |||||||||||
| Industrial and miscellaneous | 3,411 | 3,069 | - | 1,230 | 1,839 | |||||||||||
| Parent, subsidiaries and affiliates | 220 | 194 | - | 37 | 157 | |||||||||||
| Preferred stocks | 7 | 7 | 1 | - | 6 | |||||||||||
| Common stocks - subsidiaries and affiliates | 23 | 23 | 18 | - | 5 | |||||||||||
| Common stocks - unaffiliated | 2 | 2 | 1 | - | 1 | |||||||||||
| Mortgage loans - commercial | 729 | 680 | - | - | 680 | |||||||||||
| Mortgage loans - residential | 189 | 171 | - | - | 171 | |||||||||||
| Derivatives: | ||||||||||||||||
| Interest rate swaps | 602 | 602 | - | 602 | - | |||||||||||
| Options | 15 | 15 | - | 15 | - | |||||||||||
| Currency swaps | 104 | 104 | - | 104 | - | |||||||||||
| Forward contracts | 2 | 2 | - | 2 | - | |||||||||||
| Financial futures | 1 | 1 | 1 | - | - | |||||||||||
| Cash, cash equivalents and - short-term investments | 57 | 57 | 14 | 43 | - | |||||||||||
| Separate account assets | 1,553 | 1,553 | 1,553 | - | - | |||||||||||
| Financial liabilities: | ||||||||||||||||
| Individual annuity contracts | 2,871 | 2,769 | - | - | 2,769 | |||||||||||
| Supplementary contracts | 60 | 60 | - | - | 60 | |||||||||||
| Derivatives: | ||||||||||||||||
| Interest rate swaps | 469 | 469 | - | 469 | - | |||||||||||
| Options | 6 | 6 | - | 6 | - | |||||||||||
| Currency swaps | 1 | 1 | - | 1 | - | |||||||||||
| Forward contracts | 4 | 4 | - | 4 | - | |||||||||||
Common stock – subsidiary and affiliates does not include MML Bay State, which has a statutory carry value of $252 million.
| 21 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The authoritative guidance for fair value establishes a measurement framework that includes a hierarchy used to classify the inputs used in measuring fair value. The hierarchy prioritizes the inputs to valuation techniques into three levels. Each level reflects a unique description of the inputs that are significant to the fair value measurements. The levels of the fair value hierarchy are as follows:
Level 1 – Observable inputs in the form of quoted prices for identical instruments in active markets.
Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active or other inputs that are observable or can be derived from observable market data for substantially the full term of the assets or liabilities.
Level 3 – One or more unobservable inputs that are supported by little or no market activity and are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using internal models, as well as instruments for which the determination of fair value requires significant management judgment or estimation.
When available, the Company generally uses unadjusted quoted market prices from independent sources to determine the fair value of investments and classifies such items within Level 1 of the fair value hierarchy. If quoted prices are not available, prices are derived from observable market data for similar assets in an active market or obtained directly from brokers for identical assets traded in inactive markets. Investments that are priced using these inputs are classified within Level 2 of the fair value hierarchy. When some of the necessary observable inputs are unavailable, fair value is based upon internally developed models. These models use inputs not directly observable or correlated with observable market data. Typical inputs, which are integrated in the Company’s internal discounted cash flow models and discounted earnings models include, but are not limited to, issuer spreads derived from internal credit ratings and benchmark yields such as SOFR, cash flow estimates and earnings before interest, taxes, depreciation and amortization estimates. Investments that are priced with such unobservable inputs are classified within Level 3 of the fair value hierarchy.
The Company reviews the fair value hierarchy classifications at each reporting period. Overall, reclassifications between levels occur when there are changes in the observability of inputs and market activity used in the valuation of a financial asset or liability. Such reclassifications are reported as transfers between levels at the beginning fair value for the reporting period in which the changes occur. Given the types of assets classified as Level 1 (primarily equity securities including mutual fund investments), transfers between Level 1 and Level 2 measurement categories are expected to be infrequent. Transfers into and out of Level 3 are summarized in the schedule of changes in Level 3 assets and liabilities.
The fair value of individual annuity and supplementary contracts is determined using one of several methods based on the specific contract type. For short-term contracts, generally less than 30 days, the fair value is assumed to be the book value. For investment-type contracts, the fair value is determined by calculating the present value of future cash flows discounted at current market interest rates, the risk-free rate or a current pricing yield curve based on pricing assumptions using assets of a comparable corporate bond quality. Annuities are valued using cash flow projections from the Company’s asset-liability management analysis.
| 22 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following presents the Company’s fair value hierarchy for assets and liabilities that are carried at fair value:
| December 31, 2023 | |||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | ||||||||||||
| (In Millions) | |||||||||||||||
| Financial assets: | |||||||||||||||
| Bonds: | |||||||||||||||
| Industrial and miscellaneous | $ | - | $ | 2 | $ | 4 | $ | 6 | |||||||
| Preferred stocks | - | - | 4 | 4 | |||||||||||
| Common stocks - subsidiaries and affiliates | - | - | 6 | 6 | |||||||||||
| Common stocks - unaffiliated | 4 | - | 3 | 7 | |||||||||||
| Interest rate swaps | - | 421 | - | 421 | |||||||||||
| Options | - | 28 | - | 28 | |||||||||||
| Currency swaps | - | 62 | - | 62 | |||||||||||
| Forward contracts | - | 1 | - | 1 | |||||||||||
| Financial futures | 48 | - | - | 48 | |||||||||||
| Separate account assets | 1,732 | - | - | 1,732 | |||||||||||
| Total financial assets carried at fair value | $ | 1,784 | $ | 514 | $ | 17 | $ | 2,315 | |||||||
| Financial liabilities: | |||||||||||||||
| Derivatives: | |||||||||||||||
| Interest rate swaps | $ | - | $ | 255 | $ | - | $ | 255 | |||||||
| Options | - | 16 | - | 16 | |||||||||||
| Currency swaps | - | 4 | - | 4 | |||||||||||
| Forward contracts | - | 4 | - | 4 | |||||||||||
| Total financial liabilities carried at fair value | $ | - | $ | 279 | $ | - | $ | 279 | |||||||
For the year ended December 31, 2023, there were no significant transfers between Level 1 and Level 2.
| 23 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following presents the Company’s fair value hierarchy for assets and liabilities that are carried at fair value:
| December 31, 2022 | ||||||||||||||||
| Level 1 | Level 2 | Level 3 | Total | |||||||||||||
| (In Millions) | ||||||||||||||||
| Financial assets: | ||||||||||||||||
| Bonds: | ||||||||||||||||
| Industrial and miscellaneous | $ | - | $ | - | $ | 10 | $ | 10 | ||||||||
| Preferred stocks | - | - | 4 | 4 | ||||||||||||
| Common stocks - subsidiaries and affiliates | 18 | - | 5 | 23 | ||||||||||||
| Common stocks - unaffiliated | - | - | 2 | 2 | ||||||||||||
| Derivatives: | ||||||||||||||||
| Interest rate swaps | - | 602 | - | 602 | ||||||||||||
| Options | - | 15 | - | 15 | ||||||||||||
| Currency swaps | - | 104 | - | 104 | ||||||||||||
| Forward contracts | - | 2 | - | 2 | ||||||||||||
| Financial futures | 1 | - | - | 1 | ||||||||||||
| Separate account assets | 1,553 | - | - | 1,553 | ||||||||||||
| Total financial assets carried at fair value | $ | 1,572 | $ | 723 | $ | 21 | $ | 2,316 | ||||||||
| Financial liabilities: | ||||||||||||||||
| Derivatives: | ||||||||||||||||
| Interest rate swaps | $ | -) |
$ | 469( |
$ | - |
$ | 469 | ||||||||
| Options | - | 6 | - | 6 | ||||||||||||
| Currency swaps | - | 1 | - | 1 | ||||||||||||
| Forward contracts | - | 4 | - | 4 | ||||||||||||
| Total financial liabilities carried at fair value | $ | - | $ | 480 | $ | - | $ | 480 | ||||||||
For the year ended December 31, 2022, there were no significant transfers between Level 1 and Level 2.
Valuation Techniques and Inputs
The Company determines the fair value of its investments using primarily the market approach or the income approach. The use of quoted prices for identical assets and matrix pricing or other similar techniques are examples of market approaches, while the use of discounted cash flow methodologies is an example of the income approach. The Company attempts to maximize the use of observable inputs and minimize the use of unobservable inputs in selecting whether the market or the income approach is used.
A description of the significant valuation techniques and inputs to the determination of estimated fair value for the more significant asset and liability classes measured at fair value on a recurring basis and categorized within Level 2 and Level 3 of the fair value hierarchy is as follows:
Derivative assets and liabilities - These financial instruments are primarily valued using the market approach. The estimated fair value of derivatives is based primarily on quotations obtained from counterparties and independent sources, such as quoted market values received from brokers. These quotations are compared to internally derived prices and a price challenge is lodged with the counterparties and an independent source when a significant difference cannot be explained by appropriate adjustments to the internal model. When quoted market values are not reliable or available, the value is based upon an internal valuation process using market observable inputs that other market participants would use. Significant inputs to the valuation of derivative financial instruments include overnight index swaps (OIS) and SOFR basis curves, interest rate volatility, swap yield curve, currency spot rates, cross currency basis
| 24 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
curves and dividend yields. Due to the observability of the significant inputs to these fair value measurements, they are classified as Level 2.
The use of different assumptions or valuation methodologies may have a material impact on the estimated fair value amounts. For the periods presented, there were no significant changes to the Company’s valuation techniques.
The following presents changes in the Company’s Level 3 assets carried at fair value:
| Gains (Losses) in Net Income | Losses (Gains) in Surplus |
Purchases | Issuances | Sales | Settlements | ||||||||||||||||||||||||||||||
Balance as of 1/1/23 |
Balance as of 12/31/23 | ||||||||||||||||||||||||||||||||||
| Transfers | |||||||||||||||||||||||||||||||||||
| In | Out | Other | |||||||||||||||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||||||||
| Bonds: | |||||||||||||||||||||||||||||||||||
| Industrial and miscellaneous | $ | 10 | $ | (1) | $ | - | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | 4 | |||||||||||||
| Preferred stocks | 4 | - | - | - | - | - | - | - | - | - | 4 | ||||||||||||||||||||||||
| Common stocks - subsidiaries and affiliates | 5 | - | 27 | - | (26) | - | - | - | - | - | 6 | ||||||||||||||||||||||||
| Common stocks - unaffiliated | 2 | - | (1) | - | 2 | - | - | - | - | - | 3 | ||||||||||||||||||||||||
| Total financial assets | $ | 21 | $ | (1) | $ | 26 | $ | 1 | $ | (24) | $ | - | $ | - | $ | - | $ | - | $ | (6) | $ | 17 | |||||||||||||
Other transfers include assets that are either no longer carried at fair value, or have just begun to be carried at fair value, such as assets with no level changes but a change in the lower of cost or market carrying basis.
| Gains (Losses) in Net Income | Losses (Gains) in Surplus |
Purchases | Issuances | Sales | Settlements | ||||||||||||||||||||||||||||||
Balance as of 1/1/22 |
Balance as of 12/31/22 | ||||||||||||||||||||||||||||||||||
| Transfers | |||||||||||||||||||||||||||||||||||
| In | Out | Other | |||||||||||||||||||||||||||||||||
| (In Millions) | |||||||||||||||||||||||||||||||||||
| Financial assets: | |||||||||||||||||||||||||||||||||||
| Bonds: | |||||||||||||||||||||||||||||||||||
| Industrial and miscellaneous | $ | 19 | $ | (1) | $ | (2) | $ | - | $ | 1 | $ | - | $ | - | $ | - | $ | - | $ | (7) | $ | 10 | |||||||||||||
| Preferred stocks | - | - | (1) | - | - | - | - | - | - | 5 | 4 | ||||||||||||||||||||||||
| Common stocks-subsidiaries and affiliates | 4 | - | 17 | 1 | (17) | - | - | - | - | - | 5 | ||||||||||||||||||||||||
| Common stocks - unaffiliated | 5 | 2 | (3)) | - | - | - | (2) | - | - | - | 2 | ||||||||||||||||||||||||
| Total financial assets | $ | 28 | $ | 1 | $ | 11 | $ | 1 | $ | (16) | $ | - | $ | (2) | $ | - | $ | - | $ | (2) | $ | 21 | |||||||||||||
Other transfers include assets that are either no longer carried at fair value, or have just begun to be carried at fair value, such as assets with no level changes but a change in the lower of cost or market carrying basis.
| 25 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The Company maintains a diversified investment portfolio. Investment policies limit concentration in any asset class, geographic region, industry group, economic characteristic, investment quality or individual investment.
The carrying value and fair value of bonds were as follows:
| December 31, 2023 | |||||||||||||
| Gross | Gross | ||||||||||||
| Carrying | Unrealized | Unrealized | Fair | ||||||||||
| Value | Gains | Losses | Value | ||||||||||
| (In Millions) | |||||||||||||
| U.S. government and agencies | $ | 3 | $ | - | $ | - | $ | 3 | |||||
| States, territories and possessions | 11 | - | - | 11 | |||||||||
| Political subdivisions | 14 | 1 | 1 | 14 | |||||||||
| Special revenue | 71 | 3 | 2 | 73 | |||||||||
| Industrial and miscellaneous | 2,254 | 7 | 230 | 2,031 | |||||||||
| Parent, subsidiaries and affiliates | 264 | - | 16 | 248 | |||||||||
| Total | $ | 2,617 | $ | 11 | $ | 249 | $ | 2,380 | |||||
The December 31, 2023 gross unrealized losses exclude $1 million of losses included in the carrying value. These losses include $1 million from NAIC Class 6 bonds and were primarily included in industrial and miscellaneous or parents, subsidiaries and affiliates.
| December 31, 2022 | |||||||||||||
| Gross | Gross | ||||||||||||
| Carrying | Unrealized | Unrealized | Fair | ||||||||||
| Value | Gains | Losses | Value | ||||||||||
| (In Millions) | |||||||||||||
| U.S. government and agencies | $ | 3 | $ | - | $ | - | $ | 3 | |||||
| States, territories and possessions | 12 | - | - | 12 | |||||||||
| Political subdivisions | 14 | - | - | 14 | |||||||||
| Special revenue | 76 | 3 | 3 | 76 | |||||||||
| Industrial and miscellaneous | 3,411 | 14 | 356 | 3,069 | |||||||||
| Parent, subsidiaries and affiliates | 220 | - | 26 | 194 | |||||||||
| Total | $ | 3,736 | $ | 17 | $ | 385 | $ | 3,368 | |||||
The December 31, 2022 gross unrealized losses exclude $2 million of losses included in the carrying value. These losses include $2 million from NAIC Class 6 bonds and were primarily included in industrial and miscellaneous or parents, subsidiaries and affiliates.
| 26 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The quality of the bond portfolio is determined by the use of SVO ratings and the equivalent rating agency designations, except for RMBS and CMBS that use outside modelers. The following sets forth the NAIC class ratings for the bond portfolio including RMBS and CMBS:
| December 31, | ||||||||||||||||
| 2023 | 2022 | |||||||||||||||
| NAIC | Equivalent Rating | Carrying | % of | Carrying | % of | |||||||||||
| Class | Agency Designation | Value | Total | Value | Total | |||||||||||
| ($ In Millions) | ||||||||||||||||
| 1 | Aaa/Aa/A | $ | 1,277 | 49 | % | $ | 1,838 | 49 | % | |||||||
| 2 | Baa | 945 | 36 | 1,515 | 41 | |||||||||||
| 3 | Ba | 287 | 11 | 290 | 8 | |||||||||||
| 4 | B | 68 | 3 | 37 | 1 | |||||||||||
| 5 | Caa and lower | 31 | 1 | 40 | 1 | |||||||||||
| 6 | In or near default | 9 | - | 16 | - | |||||||||||
| Total | $ | 2,617 | 100 | % | $ | 3,736 | 100 | % | ||||||||
The following summarizes NAIC ratings for RMBS and CMBS investments subject to NAIC modeling:
| December 31, | |||||||||||||||||||||||
| 2023 | 2022 | ||||||||||||||||||||||
| RMBS | CMBS | RMBS | CMBS | ||||||||||||||||||||
| NAIC | Carrying | % of | Carrying | % of | Carrying | % of | Carrying | % of | |||||||||||||||
| Class | Value | Total | Value | Total | Value | Total | Value | Total | |||||||||||||||
| ($ In Millions) | |||||||||||||||||||||||
| 1 | $ | 2 | 100 | % | $ | 55 | 89 | % | $ | 16 | 88 | % | $ | 62 | 90 | % | |||||||
| 2 | - | - | 4 | 6 | 1 | 6 | 2 | 3 | |||||||||||||||
| 3 | - | - | 3 | 5 | 1 | 6 | 2 | 3 | |||||||||||||||
| 4 | - | - | - | - | - | - | 1 | 1 | |||||||||||||||
| 5 | - | - | - | - | - | - | 2 | 3 | |||||||||||||||
| 6 | - | - | - | - | - | - | - | - | |||||||||||||||
| $ | 2 | 100 | % | $ | 62 | 100 | % | $ | 18 | 100 | % | $ | 69 | 100 | % | ||||||||
The following is a summary of the carrying value and fair value of bonds as of December 31, 2023 by contractual maturity. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. Securities with more than one maturity date are included in the table using the final maturity date.
| Carrying | Fair | |||||
| Value | Value | |||||
| (In Millions) | ||||||
| Due in one year or less | $ | 291 | $ | 276 | ||
| Due after one year through five years | 348 | 337 | ||||
| Due after five years through ten years | 746 | 702 | ||||
| Due after ten years | 1,232 | 1,064 | ||||
| Total | $ | 2,617 | $ | 2,379 | ||
| 27 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Sales proceeds and related gross realized capital gains (losses) from bonds were as follows:
| Years Ended December 31, | |||||||||
| 2023 | 2022 | 2021 | |||||||
| (In Millions) | |||||||||
| Proceeds from sales | $ | 1,041 | $ | 422 | $ | 266 | |||
| Gross realized capital gains from sales | 13 | 8 | 10 | ||||||
| Gross realized capital losses from sales | (91) | (10) | (1) | ||||||
The following is a summary of the fair values and gross unrealized losses aggregated by bond category and length of time that the securities were in a continuous unrealized loss position:
| December 31, 2023 | ||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | |||||||||||||||
| Number | Number | |||||||||||||||
| Fair | Unrealized | of | Fair | Unrealized | of | |||||||||||
| Value | Losses | Issuers | Value | Losses | Issuers | |||||||||||
| ($ In Millions) | ||||||||||||||||
| U.S. government and agencies | $ | - | $ | - | - | $ | - | $ | - | 1 | ||||||
| States, territories and possessions | 2 | - | 2 | 2 | - | 2 | ||||||||||
| Political subdivisions | 1 | - | 2 | 7 | 1 | 4 | ||||||||||
| Special revenue | 11 | - | 10 | 33 | 2 | 28 | ||||||||||
| Industrial and miscellaneous | 52 | 5 | 109 | 1,520 | 227 | 882 | ||||||||||
| Parent, subsidiaries and affiliates | 1 | - | 1 | 246 | 16 | 11 | ||||||||||
| Total | $ | 67 | $ | 5 | 124 | $ | 1,808 | $ | 246 | 928 | ||||||
The December 31, 2023 gross unrealized losses include $1 million of losses included in the carrying value of NAIC Class 6 bonds. These losses were primarily included in the industrial and miscellaneous or parent, subsidiaries and affiliates.
| December 31, 2022 | ||||||||||||||||
| Less Than 12 Months | 12 Months or Longer | |||||||||||||||
| Number | Number | |||||||||||||||
| Fair | Unrealized | of | Fair | Unrealized | of | |||||||||||
| Value | Losses | Issuers | Value | Losses | Issuers | |||||||||||
| ($ In Millions) | ||||||||||||||||
| U.S. government and agencies | $ | - | $ | - | 1 | $ | 3 | $ | - | 1 | ||||||
| All Other Governments | - | - | 1 | - | - | - | ||||||||||
| States, territories and possessions | 7 | - | 6 | - | - | - | ||||||||||
| Political subdivisions | 7 | 1 | 7 | - | - | - | ||||||||||
| Special revenue | 41 | 3 | 37 | - | - | 2 | ||||||||||
| Industrial and miscellaneous | 1,997 | 225 | 1,277 | 509 | 133 | 426 | ||||||||||
| Parent, subsidiaries and affiliates | 23 | 2 | 10 | 171 | 24 | 9 | ||||||||||
| Total | $ | 2,075 | $ | 231 | 1,339 | $ | 683 | $ | 157 | 438 | ||||||
The December 31, 2022 gross unrealized losses include $2 million of losses included in the carrying value of NAIC Class 6 bonds. These losses were primarily included in the industrial and miscellaneous or parent, subsidiaries and affiliates.
| 28 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
As of December 31, 2023 and 2022, management has not deemed these unrealized losses to be other than temporary because the investment’s carrying value is expected to be realized and the Company has the ability and intent not to sell these investments until recovery, which may be at maturity.
As of December 31, 2023, investments in structured and loan-backed securities that had unrealized losses, which were not recognized in earnings, had a fair value of $375 million. Securities in an unrealized loss position for less than 12 months had a fair value of $14 million and unrealized losses of $1 million. Securities in an unrealized loss position for greater than 12 months had a fair value of $361 million and unrealized losses of $29 million. These securities were primarily categorized as industrial and miscellaneous or parent, subsidiaries and affiliates.
As of December 31, 2022, investments in structured and loan-backed securities that had unrealized losses, which were not recognized in earnings, had a fair value of $517 million. Securities in an unrealized loss position for less than 12 months had a fair value of $380 million and unrealized losses of $22 million. Securities in an unrealized loss position for greater than 12 months had a fair value of $137 million and unrealized losses of $20 million. These securities were primarily categorized as industrial and miscellaneous or parent, subsidiaries and affiliates.
In the course of the Company’s investment management activities, securities may be sold and reacquired within 30 days to enhance the Company’s yield on its investment portfolio. The Company did not sell any securities with the NAIC Designation 3 or below for the years ended December 31, 2023 or 2022, that were reacquired within 30 days of the sale date.
The Company had assets on deposit with government authorities or trustees, as required by law, in the amount of $4 million as of December 31, 2023 and 2022.
Residential mortgage-backed exposure
RMBS are included in the U.S. government and agencies, special revenue, and industrial and miscellaneous bond categories. The Alt-A category includes option adjustable-rate mortgages and the subprime category includes ‘scratch and dent’ or reperforming pools, high loan-to-value pools and pools where the borrowers have very impaired credit but the average loan-to-value is low, typically 70% or below. In identifying Alt-A and subprime exposure, management used a combination of qualitative and quantitative factors, including FICO scores and loan-to-value ratios.
As of December 31, 2023, RMBS had a total carrying value of $25 million and a fair value of $22 million, of which approximately 30%, based on carrying value, was classified as Alt-A. Alt-A and subprime RMBS had a total carrying value of $18 million and a fair value of $15 million. As of December 31, 2022, RMBS had a total carrying value of $26 million and a fair value of $24 million, of which approximately 31%, based on carrying value, was classified as Alt-A. Alt-A and subprime RMBS had a total carrying value of $16 million and a fair value of $15 million.
During the year ended December 31, 2023, there were no significant credit downgrades for the securities held by the Company that were backed by residential mortgage pools.
Leveraged loan exposure
Leveraged loans are loans extended to companies that already have considerable amounts of debt. The Company reports leveraged loans as bonds. These leveraged loans have interest rates higher than typical loans, reflecting the additional risk of default from issuers with high debt-to-equity ratios.
As of December 31, 2023, total leveraged loans and leveraged loan CDOs had a carrying value of $561 million and a fair value of $551 million, of which approximately 70%, based on carrying value, were domestic leveraged loans and CDOs. As of December 31, 2022, total leveraged loans and leveraged loan CDOs had a carrying value of $752 million and a fair value of $727 million, of which approximately 76%, based on carrying value, were domestic leveraged loans and CDOs.
| 29 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Commercial mortgage-backed exposure
The Company holds bonds backed by pools of commercial mortgages. The mortgages in these pools have varying risk characteristics related to underlying collateral type, borrower’s risk profile and ability to refinance and the return provided to the borrower from the underlying collateral. These investments had a carrying value of $63 million and fair value of $52 million as of December 31, 2023 and a carrying value of $69 million and fair value of $58 million as of December 31, 2022.
The carrying value and fair value of preferred stocks were as follows:
| December 31, | ||||||
| 2023 | 2022 | |||||
| (In Millions) | ||||||
| Carrying value | $ | 5 | $ | 7 | ||
| Gross unrealized gains | - | - | ||||
| Fair value | $ | 5 | $ | 7 | ||
As of December 31, 2023, investments in preferred stocks in an unrealized loss position included holdings with a fair value of $5 million in 6 issuers, $5 million of which were in an unrealized loss position for more than 12 months. As of December 31, 2022, investments in preferred stocks in an unrealized loss position included holdings with a fair value of $4 million in 7 issuers, $4 million of which were in an unrealized loss position for more than 12 months. Based upon the Company’s impairment review process discussed in Note 2z. “Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)” the decline in value of these securities was not considered to be other than temporary as of December 31, 2023 or 2022.
The Company held preferred stocks for which the transfer of ownership was restricted by contractual requirements with carrying values of $1 million as of December 31, 2023 and $3 million as of December 31, 2022.
c. Common stocks - subsidiary and affiliates
MML Bay State primarily provides variable life and bank-owned life insurance business. It declared and paid $25 million in dividends to the Company for the year ended December 31, 2023, $26 million in 2022 and $27 million in 2021. A majority of MML Bay State’s shareholder’s equity is subject to dividend restrictions. Dividend restrictions, imposed by state regulations, limit the payment of dividends to the Company without prior approval from the Department. Under these regulations, $23 million of shareholder’s equity is available for distribution to the shareholder in 2024 without prior regulatory approval. The Company does not rely on dividends from its subsidiary to meet its operating cash flow requirements.
The Company did not hold any affiliated common stocks for which the transfer of ownership was restricted by contractual requirements as of December 31, 2023 or 2022.
| 30 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Summarized below is certain statutory financial information for MML Bay State:
| As of and for Years Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Total revenue | $ | 18 | $ | (14) | $ | 25 | ||
| Net income | 7 | 15 | 19 | |||||
| Assets | 5,108 | 5,023 | 5,463 | |||||
| Liabilities | 4,875 | 4,771 | 5,198 | |||||
| Member’s Equity | 233 | 252 | 265 | |||||
d. Common stocks - unaffiliated
The adjusted cost basis and carrying value of unaffiliated common stocks were as follows:
| December 31, | ||||||
| 2023 | 2022 | |||||
| (In Millions) | ||||||
| Adjusted cost basis | $ | 6 | $ | 1 | ||
| Gross unrealized gains | 2 | 1 | ||||
| Gross unrealized losses | (1) | - | ||||
| Carrying value | $ | 7 | $ | 2 | ||
As of December 31, 2023, investments in unaffiliated common stocks in an unrealized loss position included holdings with a fair value of less than $2 million from 11 issuers, less than $0 million of which were in an unrealized loss position for more than 12 months. As of December 31, 2022, investments in unaffiliated common stocks in an unrealized loss position included holdings with a fair value of less than $1 million from 9 issuers, less than $1 million of which were in an unrealized loss position for more than 12 months. Based upon the Company’s impairment review process discussed in Note 2y. “Realized capital (losses)gains including other-than-temporary impairments and unrealized capital gains (losses)” the decline in value of these securities was not considered to be other than temporary as of December 31, 2023 or 2022.
The Company held common stocks, for which the transfer of ownership was restricted by contractual requirements, with carrying values of $1 million as of December 31, 2023 and $1 million as of December 31, 2022.
Mortgage loans are comprised of commercial mortgage loans and residential mortgage loans. The Company’s commercial mortgage loans primarily finance various types of real estate properties throughout the U.S., the United Kingdom and Canada. The Company holds commercial mortgage loans for which it is a participant or co-lender in a mortgage loan agreement and mezzanine loans that are subordinate to senior secured first liens. The Company’s loan agreements with the senior lender contain negotiated provisions that are designed to maximize the Company’s influence with the objective of mitigating the Company’s risks as the secondary lender for mezzanine loans. Commercial mortgage loans have varying risk characteristics including, among others, the borrower’s liquidity, the underlying percentage of completion of a project, the returns generated by the collateral, the refinance risk associated with maturity of the loan and deteriorating collateral value.
Residential mortgage loans include seasoned pools of homogeneous residential mortgage loans substantially backed by Federal Housing Administration (FHA) and Veterans Administration (VA) guarantees. As of December 31, 2023 and December 31, 2022, the Company did not have any direct subprime exposure through the purchases of unsecuritized whole-loan pools.
| 31 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Geographical concentration is considered prior to the purchase of mortgage loans and residential mortgage loan pools. The mortgage loan portfolio is diverse with no significant collateral concentrations in any particular geographic region as of December 31, 2023 or 2022.
The carrying value and fair value of the Company’s mortgage loans were as follows:
| December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Carrying | Fair | Carrying | Fair | |||||||||||
| Value | Value | Value | Value | |||||||||||
| (In Millions) | ||||||||||||||
| Commercial mortgage loans: | ||||||||||||||
| Primary lender | $ | 637 | $ | 595 | $ | 729 | $ | 680 | ||||||
| Mezzanine loans | 5 | 6 | - | - | ||||||||||
| Total commercial mortgage loans | 642 | 601 | 729 | 680 | ||||||||||
| Residential mortgage loans: | ||||||||||||||
| FHA insured and VA guaranteed | 128 | 118 | 156 | 142 | ||||||||||
| Other residential loans | 33 | 28 | 33 | 29 | ||||||||||
| Total residential mortgage loans | 161 | 146 | 189 | 171 | ||||||||||
| Total mortgage loans | $ | 803 | $ | 747 | $ | 918 | $ | 851 | ||||||
| 32 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The loan-to-value ratios by property type of the Company’s commercial mortgage loans were as follows:
| December 31, 2023 | ||||||||||||||
| Less Than | 81% to | Above | % of | |||||||||||
| 81% | 95% | 95% | Total | Total | ||||||||||
| ($ In Millions) | ||||||||||||||
| Office | $ | 164 | $ | 24 | $ | 41 | $ | 229 | 36 | % | ||||
| Apartments | 175 | 19 | 5 | 199 | 31 | |||||||||
| Industrial and other | 54 | 3 | 3 | 60 | 9 | |||||||||
| Hotels | 59 | 5 | - | 64 | 10 | |||||||||
| Retail | 91 | - | - | 91 | 14 | |||||||||
| Total | $ | 543 | $ | 51 | $ | 49 | $ | 643 | 100 | % | ||||
| December 31, 2022 | ||||||||||||||
| Less Than | 81% to | Above | % of | |||||||||||
| 81% | 95% | 95% | Total | Total | ||||||||||
| ($ In Millions) | ||||||||||||||
| Office | $ | 250 | $ | - | $ | - | $ | 250 | 34 | % | ||||
| Apartments | 188 | 18 | - | 206 | 28 | |||||||||
| Industrial and other | 91 | 3 | - | 94 | 13 | |||||||||
| Hotels | 81 | 4 | - | 85 | 12 | |||||||||
| Retail | 94 | - | - | 94 | 13 | |||||||||
| Total | $ | 704 | $ | 25 | $ | - | $ | 729 | 100 | % | ||||
More than 85% of the Company’s commercial mortgage loans’ loan-to-value ratios are below 81% for the year ended December 31, 2023. As of December 31, 2022, more than 97% of the Company’s commercial mortgage loans’ loan-to-value ratios are below 81%.
The Company uses an internal rating system as its primary method of monitoring credit quality. The following illustrates the Company’s mortgage loan portfolio rating, translated into the equivalent rating agency designation:
| December 31, 2023 | ||||||||||||||||||||
| CCC and | ||||||||||||||||||||
| AAA/AA/A | BBB | BB | B | Lower | Total | |||||||||||||||
| (In Millions) | ||||||||||||||||||||
| Commercial mortgage loans: | ||||||||||||||||||||
| Primary lender | $ | 182 | $ | 350 | $ | 57 | $ | 45 | $ | 8 | $ | 642 | ||||||||
| Total commercial mortgage loans | 182 | 350 | 57 | 45 | 8 | 642 | ||||||||||||||
| Residential mortgage loans: | ||||||||||||||||||||
| FHA insured and VA guaranteed | 128 | - | - | - | - | 128 | ||||||||||||||
| Other residential loans | - | 30 | 2 | - | - | 32 | ||||||||||||||
| Total residential mortgage loans | 128 | 30 | 2 | - | - | 160 | ||||||||||||||
| Total mortgage loans | $ | 310 | $ | 380 | $ | 59 | $ | 45 | $ | 8 | $ | 803 | ||||||||
| 33 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| December 31, 2022 | ||||||||||||||||||||
| CCC and | ||||||||||||||||||||
| AAA/AA/A | BBB | BB | B | Lower | Total | |||||||||||||||
| (In Millions) | ||||||||||||||||||||
| Commercial mortgage loans: | ||||||||||||||||||||
| Primary lender | $ | 318 | $ | 331 | $ | 65 | $ | 15 | $ | - | $ | 729 | ||||||||
| Total commercial mortgage loans | 318 | 331 | 65 | 15 | - | 729 | ||||||||||||||
| Residential mortgage loans: | ||||||||||||||||||||
| FHA insured and VA guaranteed | 156 | - | - | - | - | 156 | ||||||||||||||
| Other residential loans | - | 31 | 2 | - | - | 33 | ||||||||||||||
| Total residential mortgage loans | 156 | 31 | 2 | - | - | 189 | ||||||||||||||
| Total mortgage loans | $ | 474 | $ | 362 | $ | 67 | $ | 15 | $ | - | $ | 918 | ||||||||
The maximum percentage of any one commercial mortgage loan to the estimated value of secured collateral at the time the loan was originated, exclusive of mezzanine, insured, guaranteed or purchase money mortgages, was 79% as of December 31, 2023 and 2022.
The geographic distribution of commercial mortgage loans was as follows:
| December 31, 2023 | |||||
| Average | |||||
| Carrying | Loan-to-Value | ||||
| Value | Ratio | ||||
| ($ In Millions) | |||||
| California | $ | 175 | 69 | % | |
| Illinois | 67 | 55 | % | ||
| New York | 58 | 80 | % | ||
| Texas | 57 | 57 | % | ||
| United Kingdom | 48 | 55 | % | ||
| Washington | 41 | 68 | % | ||
| District of Columbia | 40 | 80 | % | ||
| All Other | 156 | 61 | % | ||
| Total commercial mortgage loans | $ | 642 | 65 | % | |
| 34 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
All other consists of 19 jurisdictions with no individual exposure exceeding $16 million.
| December 31, 2022 | |||||
| Average | |||||
| Carrying | Loan-to-Value | ||||
| Value | Ratio | ||||
| ($ In Millions) | |||||
| California | $ | 208 | 48 | % | |
| Illinois | 73 | 46 | % | ||
| New York | 67 | 57 | % | ||
| Texas | 60 | 57 | % | ||
| District of Columbia | 52 | 54 | % | ||
| Washington | 48 | 50 | % | ||
| United Kingdom | 47 | 49 | % | ||
| All other | 174 | 56 | % | ||
| Total commercial mortgage loans | $ | 729 | 52 | % | |
All other consists of 21 jurisdictions, with no individual exposure exceeding $18 million.
Interest rates, including fixed and variable, on the Company’s portfolio of mortgage loans were:
| December 31, | |||||||||
| 2023 | 2022 | ||||||||
| Low | High | Low | High | ||||||
| Commercial mortgage loans | 2.0 | % | 11.4 | % | 2.5 | % | 10.1 | % | |
| Residential mortgage loans | 2.2 | % | 9.3 | % | 1.9 | % | 9.3 | % | |
| Mezzanine mortgage loans | 8.0 | % | 8.0 | % | - | % | - | % | |
Interest rates, including fixed and variable, on new mortgage loans were:
| Years Ended December 31, | |||||||||
| 2023 | 2022 | ||||||||
| Low | High | Low | High | ||||||
| Commercial mortgage loans | 4.7 | % | 8.0 | % | 2.6 | % | 6.2 | % | |
| Residential mortgage loans | - | % | - | % | 2.6 | % | 7.9 | % | |
| Mezzanine mortgage loans | 8.0 | % | 8.0 | % | - | % | - | % | |
| 35 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following presents a summary of the Company’s impaired mortgage loans.
| December 31, 2023 | |||||||||||||||||
| Average | Unpaid | ||||||||||||||||
| Carrying | Carrying | Principal | Valuation | Interest | |||||||||||||
| Value | Value | Balance | Allowance | Income | |||||||||||||
| (In Millions) | |||||||||||||||||
| With allowance recorded: | |||||||||||||||||
| Commercial mortgage loans: | |||||||||||||||||
| Primary lender | $ | 16 | $ | 18 | $ | 20 | $ | (4) | $ | 1 | |||||||
| Total | 16 | 18 | 20 | (4) | 1 | ||||||||||||
As of December 31, 2022, the Company had no impaired mortgage loans with or without a valuation allowance or mortgage loans derecognized as a result of foreclosure, including mortgage loans subject to a participant or co-lender mortgage loan agreement with a unilateral mortgage loan foreclosure restriction or mortgage loan derecognized as a result of a foreclosure.
The Company did not hold any restructured mortgage loans, mortgage loans with principal or interest past due, or mortgage loans with suspended interest accruals as of December 31, 2023 or 2022. The carrying value of commercial mortgage loans subject to a participant or co-lender mortgage loan agreement was $642 million as of December 31, 2023 and $729 million as of December 31, 2022.
f. Partnerships and limited liability companies
The carrying value of partnership and limited liability companies holdings by annual statement category were:
| December 31, | ||||||||
| 2023 | 2022 | |||||||
| (In Millions) | ||||||||
| Joint venture interests: | ||||||||
| Real estate | $ | 45 | $ | 53 | ||||
| Common stocks | 70 | 74 | ||||||
| Fixed maturities/preferred stock | - | 2 | ||||||
| Other | 22 | 19 | ||||||
| Surplus notes | 7 | 16 | ||||||
| Mortgage loans | 3 | 7 | ||||||
| Total | $ | 147 | $ | 171 | ||||
The Company held seven affiliated partnerships and limited liability companies in a loss position with accumulated losses of $3 million as of December 31, 2023. The Company did not have any affiliated partnerships and limited liability companies in a loss position as of December 31, 2022
The Company did not hold any unexpired tax credits for the year ended December 31, 2023
The minimum holding period required for the Company’s LIHTC investments extends from one year to 15 years.
For determining impairments for LIHTC investments, the Company uses the present value of all future benefits, the majority of which are tax credits, discounted at a risk-free rate ranging from 4.5% for future benefits of two years to 3.9% for future benefits of ten or more years, and compares the result to its current carry value. The Company recorded less than $1 million impairment to LIHTC investments for the years ended December 31, 2023 and 2022.
| 36 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The Company uses derivative financial instruments in the normal course of business to manage risks, primarily to reduce currency, interest rate and duration imbalances determined in asset/liability analyses. The Company also uses a combination of derivatives and fixed income investments to create replicated synthetic investments. These replicated synthetic investments are created when they are economically more attractive than the actual instrument or when similar instruments are unavailable. Replicated synthetic investments are created either to hedge and reduce the Company’s credit exposure or to create an investment in a particular asset. The Company held synthetic investments with a notional amount of $820 million as of December 31, 2023 and the Company held synthetic investments with a national amount of $820 million as of December 31, 2022. These notional amounts included no replicated asset transaction values as of December 31, 2023 and 2022, as defined under statutory accounting practices as the result of pairing of a long derivative contract with cash instruments.
The Company’s derivative strategy employs a variety of derivative financial instruments, including: interest rate, currency, equity, bond, and credit default swaps; options; forward contracts and financial futures. Investment risk is assessed on a portfolio basis and individual derivative financial instruments are not generally designated in hedging relationships; therefore, as allowed by statutory accounting practices, the Company intentionally has not applied hedge accounting.
Interest rate swaps are primarily used to more closely match the cash flows of assets and liabilities. Interest rate swaps are also used to mitigate changes in the value of assets anticipated to be purchased and other anticipated transactions and commitments. The Company uses currency swaps for the purpose of managing currency exchange risks in its assets and liabilities.
The Company does not sell credit default swaps as a participant in the credit insurance market. The Company does, however, use credit default swaps as part of its investment management process. The Company buys credit default swaps as an efficient means to reduce credit exposure to particular issuers or sectors in the Company’s investment portfolio. The Company sells credit default swaps in order to create synthetic investment positions that enhance the return on its investment portfolio by providing comparable exposure to fixed income securities that might not be available in the primary market.
Options grant the purchaser the right to buy or sell a security or enter a derivative transaction at a stated price within a stated period. The Company’s option contracts have terms of up to 22 years. A swaption is an option to enter an interest rate swap to either receive or pay a fixed rate at a future date. The Company purchases these options for the purpose of managing interest rate risks in its assets and liabilities.
The Company adopted a clearly defined hedging strategy (CDHS) to enable the Company to incorporate currently held hedges in risk-based capital (RBC) calculations. The CDHS is used to significantly mitigate the impact that movements in capital markets have on the liabilities associated with annuity guarantees. The hedge portfolio consists mainly of interest rate swaps and equity options, and provides protection in the stress scenarios under which RBC is calculated. The hedge portfolio has offsetting impacts relative to the total asset requirement for RBC and surplus for FIA and variable annuity guaranteed living benefits (VAGLB).
The Company utilizes certain other agreements including forward contracts and financial futures. Currency forwards are contracts in which the Company agrees with other parties to exchange specified amounts of identified currencies at a specified future date. Typically, the exchange rate is agreed upon at the time of the contract. In addition, the Company also uses “to be announced” forward contracts (TBAs) to hedge interest rate risk and participate in the MBS market in an efficient and cost effective way. Typically, the price is agreed upon at contract inception and payment is made at a specified future date. The Company usually does not purchase TBAs with settlement by the first possible delivery date and thus, accounts for these TBAs as derivatives. TBAs that settle on the first possible delivery date are accounted for as bonds. The Company’s futures contracts are exchange traded and have credit risk. Margin requirements are met with the deposit of securities. Futures contracts are generally settled with offsetting transactions. Forward contracts and financial futures are used by the Company to reduce exposures to various risks including interest rates and currency rates.
| 37 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The Company’s principal derivative exposures to market risk are interest rate risk, which includes inflation and credit risk. Interest rate risk pertains to the change in fair value of the derivative instruments as a result of changes in market interest rates. The Company is exposed to credit-related losses in the event of nonperformance by counterparties to derivative financial instruments. The Company regularly monitors counterparty credit ratings, derivative positions, valuations and the value of collateral posted to ensure counterparties are credit-worthy and the concentration of exposure is minimized, and monitors its derivative credit exposure as part of its overall risk management program.
The Company enters derivative transactions through bilateral derivative agreements with counterparties, or through over the counter cleared derivatives with a counterparty and the use of a clearinghouse. To minimize credit risk for bilateral transactions, the Company and its counterparties generally enter into master netting agreements based on agreed upon requirements that outline the framework for how collateral is to be posted in the amount owed under each transaction, subject to certain minimums. For over the counter cleared derivative transactions between the Company and a counterparty, the parties enter into a series of master netting and other agreements that govern, among other things, clearing and collateral requirements. These transactions are cleared through a clearinghouse and each derivative counterparty is only exposed to the default risk of the clearinghouse. Certain interest rate swaps and credit default swaps are considered cleared transactions. These cleared transactions require initial and daily variation margin collateral postings. These agreements allow for contracts in a positive position, in which amounts are due to the Company, to be offset by contracts in a negative position. This right of offset, combined with collateral obtained from counterparties, reduces the Company’s credit exposure.
Net collateral pledged to the counterparties was $87 million as of December 31, 2023 and $91 million as of December 31, 2022. In the event of default, the full market value exposure at risk in a net gain position, net of offsets and collateral was $9 million as of December 31, 2023 and $24 million as of December 31, 2022. The statutory net amount at risk, defined as net collateral pledged and statement values excluding accrued interest, was $290 million as of December 31, 2023 and $185 million as of December 31, 2022.
The following summarizes the carrying values and notional amounts of the Company’s derivative financial instruments:
| December 31, 2023 | ||||||||||||
| Assets | Liabilities | |||||||||||
| Carrying | Notional | Carrying | Notional | |||||||||
| Value | Amount | Value | Amount | |||||||||
| (In Millions) | ||||||||||||
| Interest rate swaps | $ | 423 | $ | 3,523 | $ | 255 | $ | 4,844 | ||||
| Options | 28 | 406 | 16 | 393 | ||||||||
| Currency swaps | 62 | 594 | 4 | 70 | ||||||||
| Forward contracts | 1 | 38 | 4 | 173 | ||||||||
| Credit default swaps | - | - | - | - | ||||||||
| Financial futures | 48 | 450 | - | - | ||||||||
| Total | $ | 562 | $ | 5,011 | $ | 279 | $ | 5,480 | ||||
| 38 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| December 31, 2022 | ||||||||||||
| Assets | Liabilities | |||||||||||
| Carrying | Notional | Carrying | Notional | |||||||||
| Value | Amount | Value | Amount | |||||||||
| (In Millions) | ||||||||||||
| Interest rate swaps | $ | 602 | $ | 5,003 | $ | 469 | $ | 6,369 | ||||
| Options | 15 | 415 | 6 | 359 | ||||||||
| Currency swaps | 104 | 667 | 1 | 28 | ||||||||
| Forward contracts | 2 | 39 | 4 | 170 | ||||||||
| Financial futures | 1 | 450 | - | - | ||||||||
| Total | $ | 724 | $ | 6,574 | $ | 480 | $ | 6,926 | ||||
The average fair value of outstanding derivative assets was $581 million for the year ended December 31, 2023 and $605 million for the year ended December 31, 2022. The average fair value of outstanding derivative liabilities was $324 million for the year ended December 31, 2023 and $455 million for the year ended December 31, 2022.
The Company did not have any credit default swaps for the years ended December 31, 2022 and December 31, 2021.
The following presents the Company’s gross notional interest rate swap positions:
| December 31, | |||||||
| 2023 | 2022 | ||||||
| (In Millions) | |||||||
| Open interest rate swaps in a fixed pay position | $ | 3,380 | $ | 5,020 | |||
| Open interest rate swaps in a fixed receive position | 4,988 | 6,352 | |||||
| Total interest rate swaps | $ | 8,368 | $ | 11,372 | |||
The following summarizes the Company’s net realized (losses) gains on closed contracts and change in net unrealized gains (losses) related to market fluctuations on open contracts by derivative type:
| Year Ended | |||||||||
| December 31, 2023 | |||||||||
| Net Realized | Change In Net | ||||||||
| (Losses) Gains | Unrealized Gains | ||||||||
| on Closed | (Losses) on | ||||||||
| Contracts | Open Contracts | ||||||||
| (In Millions) | |||||||||
| Interest rate swaps | 4 | 33 | |||||||
| Currency swaps | 4 | (45) | |||||||
| Options | (5) | 2 | |||||||
| Credit default swaps | - | - | |||||||
| Forward contracts | (2) | (1) | |||||||
| Financial futures | (59) | 47 | |||||||
| Total | $ | (58) | $ | 36 | |||||
| 39 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| Year Ended | |||||||
| December 31, 2022 | |||||||
| Net Realized | Change In Net | ||||||
| (Losses) Gains | Unrealized Gains | ||||||
| on Closed | (Losses) on | ||||||
| Contracts | Open Contracts | ||||||
| (In Millions) | |||||||
| Interest rate swaps | - | 192 | |||||
| Currency swaps | 2 | 72 | |||||
| Options | (2) | (12) | |||||
| Forward contracts | 20 | (1) | |||||
| Financial futures | (195) | (6) | |||||
| Total | $ | (175) | $ | 245 | |||
| Year Ended | |||||||
| December 31, 2021 | |||||||
| Net Realized | Change In Net | ||||||
| Gains (Losses) | Unrealized Gains | ||||||
| on Closed | (Losses) on | ||||||
| Contracts | Open Contracts | ||||||
| (In Millions) | |||||||
| Interest rate swaps | $ | - | $ | (71) | |||
| Currency swaps | - | 35 | |||||
| Options | 7 | (6) | |||||
| Forward contracts | 2 | 5 | |||||
| Financial futures | (55) | 17 | |||||
| Total | $ | (46) | $ | (20) | |||
The following summarizes gross and net information of derivative assets and liabilities, along with collateral posted in connection with master netting agreements:
| December 31, 2023 | December 31, 2022 | |||||||||||||||||
| Derivative | Derivative | Derivative | Derivative | |||||||||||||||
| Assets | Liabilities | Net | Assets | Liabilities | Net | |||||||||||||
| (In Millions) | ||||||||||||||||||
| Gross | $ | 562 | $ | 279 | $ | 282 | $ | 724 | $ | 480 | $ | 244 | ||||||
| Due and accrued | 24 | 146 | (121) | 24 | 133 | (109) | ||||||||||||
| Gross amounts offset | (460) | (460) | - | (415) | (415) | - | ||||||||||||
| Net asset | 126 | (35) | 161 | 333 | 198 | 135 | ||||||||||||
| Collateral posted | (120) | (206) | 87 | (204) | (295) | 91 | ||||||||||||
| Net | $ | 6 | $ | (241) | $ | 248 | $ | 129 | $ | (97) | $ | 226 | ||||||
| 40 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Net investment income, including IMR amortization, comprised the following:
| Years Ended December 31, | ||||||||||
| 2023 | 2022 | 2021 | ||||||||
| (In Millions) | ||||||||||
| Bonds | $ | 165 | $ | 153 | $ | 160 | ||||
| Preferred stocks | 1 | - | - | |||||||
| Common stocks - affiliates | 25 | 26 | 27 | |||||||
| Common stocks - unaffiliated | 2 | 1 | 1 | |||||||
| Mortgage loans | 34 | 58 | 36 | |||||||
| Policy loans | 7 | 6 | 7 | |||||||
| Partnerships and limited liability companies | 13 | 21 | 21 | |||||||
| Derivatives | (36) | 13 | 34 | |||||||
| Cash, cash equivalents and short-term investments | 9 | 2 | 1 | |||||||
| Other | 15 | 1 | 3 | |||||||
| Subtotal investment income | 235 | 281 | 290 | |||||||
| Amortization of the IMR | (2) | 3 | 5 | |||||||
| Investment expenses | (22) | (16) | (15) | |||||||
| Net investment income | $ | 211 | $ | 268 | $ | 280 | ||||
i. Net realized capital (losses) gains
Net realized capital (losses) gains, which include OTTI and are net of deferral to the IMR, comprised the following:
| Years Ended December 31, | |||||||||||
| 2023 | 2022 | 2021 | |||||||||
| (In Millions) | |||||||||||
| Bonds | $ | (79) | $ | (5) | $ | 6 | |||||
| Preferred stocks | - | - | 2 | ||||||||
| Common stocks - subsidiaries and affiliates | 6 | - | - | ||||||||
| Common stocks - unaffiliated | - | 3 | 1 | ||||||||
| Mortgage loans | (4) | - | (1) | ||||||||
| Partnerships and limited liability companies | 1 | 1 | (3) | ||||||||
| Derivatives | (58) | (174) | (46) | ||||||||
| Other | (1) | (3) | - | ||||||||
| Net realized capital (losses) gains before federal and state taxes and deferral to the IMR | (135) | (178) | (41) | ||||||||
| Net federal and state tax benefit (expense) | 6 | (1) | (5) | ||||||||
| Net realized capital (losses) gains before deferral to the IMR | (129) | (179) | (46) | ||||||||
| Net after tax losses deferred to the IMR | 114 | 195 | 48 | ||||||||
| Net realized capital (losses) gains | $ | (15) | $ | 16 | $ | 2 | |||||
| 41 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
OTTI, included in the realized capital losses, consisted of the following:
| Years Ended December 31, | |||||||||
| 2023 | 2022 | 2021 | |||||||
| (In Millions) | |||||||||
| Bonds | $ | (1) | $ | (3) | $ | (2) | |||
| Mortgage loans | - | - | (1) | ||||||
| Partnerships and LLCs | (2) | (1) | (3) | ||||||
| Total OTTI | $ | (3) | $ | (4) | $ | (6) | |||
The Company recognized OTTI of less than $1 million for the year ended December 31, 2023, 2022, and 2021, on structured and loan backed securities, which are included in bonds, primarily due to the present value of expected cash flows being less than the amortized cost.
The Company utilized internally-developed models to determine less than 1% of the $1 million of bond OTTI for the year ended December 31, 2023, less than 1% of the $3 million of bond OTTI for the year ended December 31, 2022, and less than 1% of the $2 million of bond OTTI for the year ended December 31, 2021. The remaining OTTI amounts were determined using external inputs such as publicly observable fair values and credit ratings. Refer to Note 2z. “Realized capital (losses) gains including other-than-temporary impairments and unrealized capital gains (losses)” for more information on assumptions and inputs used in the Company’s OTTI models.
Refer to Note 17. “Impairment listing for loan-backed and structured securities” for a CUSIP level list of impaired structured securities where the present value of cash flows expected to be collected is less than the amortized cost basis.
| 42 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
On August 16th, 2022, the Inflation Reduction Act (“IRA”) was signed into law and includes certain corporate income tax provisions. Impacts to the Company include the imposition of a corporate alternative minimum tax (“CAMT”) applicable to tax years beginning after December 31, 2022. The CAMT imposes a 15% minimum tax on adjusted financial statement income on applicable corporations that have an average adjusted financial statement income over $1 billion in the prior three-year period (2020-2022). As of the reporting date, the Company has determined that it is not an applicable corporation and therefore not liable for CAMT in 2023. While the Company is not an applicable corporation in 2023, any future CAMT liability will be allocated to MassMutual in accordance with the tax allocation agreement. The United States Treasury Secretary and the IRS have been authorized to issue further guidance and intend to publish proposed regulations in 2024.
The Company provides for DTAs in accordance with statutory accounting practices, and has met the required threshold to utilize the three-year reversal period and 15% of surplus limitation.
The net DTA or deferred tax liability (DTL) recognized in the Company’s assets, liabilities and surplus is as follows:
| December 31, 2023 | |||||||||||
| Ordinary | Capital | Total | |||||||||
| (In Millions) | |||||||||||
| Gross DTAs | $ | 93 | $ | 35 | $ | 128 | |||||
| Statutory valuation allowance adjustment | - | - | - | ||||||||
| Adjusted gross DTAs | 93 | 35 | 128 | ||||||||
| DTAs nonadmitted | (8) | (9) | (17) | ||||||||
| Subtotal net admitted DTA | 85 | 26 | 111 | ||||||||
| Total gross DTLs | (62) | (25) | (87) | ||||||||
| Net admitted DTA(L) | $ | 23 | $ | 1 | $ | 24 | |||||
| December 31, 2022 | |||||||||||
| Ordinary | Capital | Total | |||||||||
| (In Millions) | |||||||||||
| Gross DTAs | $ | 77 | $ | 42 | $ | 119 | |||||
| Statutory valuation allowance adjustment | - | - | - | ||||||||
| Adjusted gross DTAs | 77 | 42 | 119 | ||||||||
| DTAs nonadmitted | (3) | (14) | (17) | ||||||||
| Subtotal net admitted DTA | 74 | 28 | 102 | ||||||||
| Total gross DTLs | (53) | (26) | (79) | ||||||||
| Net admitted DTA(L) | $ | 21 | $ | 2 | $ | 23 | |||||
| Change | |||||||||||
| Ordinary | Capital | Total | |||||||||
| (In Millions) | |||||||||||
| Gross DTAs | $ | 16 | $ | (7) | $ | 9 | |||||
| Statutory valuation allowance adjustment | - | - | - | ||||||||
| Adjusted gross DTAs | 16 | (7) | 9 | ||||||||
| DTAs nonadmitted | (5) | 5 | - | ||||||||
| Subtotal net admitted DTA | 11 | (2) | 9 | ||||||||
| Total gross DTLs | (9) | 1 | (8) | ||||||||
| Net admitted DTA(L) | $ | 2 | $ | (1) | $ | 1 | |||||
| 43 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The amount of adjusted gross DTA admitted under each component of the guidance and the resulting change by tax character are as follows:
| December 31, 2023 | ||||||||||||
| Ordinary | Capital | Total | ||||||||||
| (In Millions) | ||||||||||||
| Admitted DTA 3 years: | ||||||||||||
| Federal income taxes that can be recovered | $ | - | $ | 1 | $ | 1 | ||||||
| Remaining adjusted gross DTAs expected to be realized within 3 years: | ||||||||||||
| 1. | Adjusted gross DTA to be realized | 23 | - | 23 | ||||||||
| 2. | Adjusted gross DTA allowed per limitation threshold | 282 | - | 282 | ||||||||
| Lesser of lines 1 or 2 | 23 | - | 23 | |||||||||
| Adjusted gross DTAs offset by existing DTLs | 62 | 25 | 87 | |||||||||
| Total admitted DTA realized within 3 years | $ | 85 | $ | 26 | $ | 111 | ||||||
| December 31, 2022 | ||||||||||||
| Ordinary | Capital | Total | ||||||||||
| (In Millions) | ||||||||||||
| Admitted DTA 3 years: | ||||||||||||
| Federal income taxes that can be recovered | $ | - | $ | 1 | $ | 1 | ||||||
| Remaining adjusted gross DTAs expected to be realized within 3 years | ||||||||||||
| 1. | Adjusted gross DTA to be realized | 21 | - | 21 | ||||||||
| 2. | Adjusted gross DTA allowed per limitation threshold | 263 | - | 263 | ||||||||
| Lesser of lines 1 or 2 | 21 | - | 21 | |||||||||
| Adjusted gross DTAs offset by existing DTLs | 53 | 26 | 79 | |||||||||
| Total admitted DTA realized within 3 years | $ | 74 | $ | 27 | $ | 101 | ||||||
| Change | ||||||||||||
| Ordinary | Capital | Total | ||||||||||
| (In Millions) | ||||||||||||
| Admitted DTA 3 years: | ||||||||||||
| Federal income taxes that can be recovered | $ | - | $ | - | $ | - | ||||||
| Remaining adjusted gross DTAs expected to be realized within 3 years | ||||||||||||
| 1. | Adjusted gross DTA to be realized | 2 | - | 2 | ||||||||
| 2. | Adjusted gross DTA allowed per limitation threshold | 19 | - | 19 | ||||||||
| Lesser of lines 1 or 2 | 2 | - | 2 | |||||||||
| Adjusted gross DTAs offset by existing DTLs | 9 | (1) | 8 | |||||||||
| Total admitted DTA realized within 3 years | $ | 11 | $ | (1) | $ | 10 | ||||||
| 44 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The Company’s total realization threshold limitations are as follows:
| December 31, | |||||
| 2023 | 2022 | ||||
| ($ In Millions) | |||||
| Ratio percentage used to determine recovery period and threshold limitation | 1,801% | 1,790% | |||
| Amount of adjusted capital and surplus used to determine recovery period and threshold limitation above | $ | 1,878 | $ | 1,755 | |
| 45 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The ultimate realization of DTAs depends on the generation of future taxable income during the periods in which the temporary differences are deductible. Management considers the scheduled reversal of DTLs, including the impact of available carryback and carryforward periods, projected taxable income and tax-planning strategies in making this assessment. The impact of tax-planning strategies is as follows:
| December 31, 2023 | |||||||
| Ordinary | Capital | Total | |||||
| (Percent) | |||||||
| Impact of tax planning strategies: | |||||||
| Adjusted gross DTAs (% of total adjusted gross DTAs) | - | % | - | % | - | % | |
| Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs) | - | % | 100 | % | 4 | % | |
| December 31, 2022 | |||||||
| Ordinary | Capital | Total | |||||
| (Percent) | |||||||
| Impact of tax planning strategies: | |||||||
| Adjusted gross DTAs (% of total adjusted gross DTAs) | - | % | - | % | - | % | |
| Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs) | - | % | 100 | % | 6 | % | |
| Change | |||||||
| Ordinary | Capital | Total | |||||
| (Percent) | |||||||
| Impact of tax planning strategies: | |||||||
| Adjusted gross DTAs (% of total adjusted gross DTAs) | - | % | - | % | - | % | |
| Net admitted adjusted gross DTAs (% of total net admitted adjusted gross DTAs) | - | % | - | % | (2) | % | |
There are no reinsurance strategies included in the Company’s tax-planning strategies.
The provision for current tax expense on earnings is as follows:
| Years Ended December 31, | |||||||||
| 2023 | 2022 | 2021 | |||||||
| (In Millions) | |||||||||
| Federal income tax expense on operating earnings | $ | 8 | $ | 19 | $ | 11 | |||
| Total federal and foreign income tax expense on operating earnings | 8 | 19 | 11 | ||||||
| Federal income tax expense (benefit) on net realized capital gains (losses) | (6) | 1 | 5 | ||||||
| Total federal and foreign income tax expense | $ | 2 | $ | 20 | $ | 16 | |||
| 46 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The tax effects of temporary differences that give rise to significant portions of the DTAs and DTLs are as follows:
| December 31, | |||||||||||
| 2023 | 2022 | Change | |||||||||
| (In Millions) | |||||||||||
| DTAs: | |||||||||||
| Ordinary | |||||||||||
| Reserve items | $ | 18 | $ | 16 | $ | 2 | |||||
| Policy acquisition costs | 37 | 35 | 2 | ||||||||
| Investment items | 34 | 23 | 11 | ||||||||
| Other | 4 | 3 | 1 | ||||||||
| Total ordinary DTAs | 93 | 77 | 16 | ||||||||
| Nonadmitted DTAs | (8) | (3) | (5) | ||||||||
| Admitted ordinary DTAs | 85 | 74 | 11 | ||||||||
| Capital | |||||||||||
| Investment items | 26 | 26 | - | ||||||||
| Unrealized investment losses | 9 | 16 | (7) | ||||||||
| Total capital DTAs | 35 | 42 | (7) | ||||||||
| Nonadmitted DTAs | (9) | (14) | 5 | ||||||||
| Admitted capital DTAs | 26 | 28 | (2) | ||||||||
| Admitted DTAs | 111 | 102 | 9 | ||||||||
| DTLs: | |||||||||||
| Ordinary | |||||||||||
| Investment Items | 1 | 2 | (1) | ||||||||
| Unrealized investment gains | 35 | 28 | 7 | ||||||||
| Deferred and uncollected premium | 3 | 1 | 2 | ||||||||
| Reserve Items | 1 | 2 | (1) | ||||||||
| Other | 21 | 20 | 1 | ||||||||
| Total ordinary DTLs | 61 | 53 | 8 | ||||||||
| Capital | |||||||||||
| Unrealized investment gains | 22 | 23 | (1) | ||||||||
| Investment items | 4 | 3 | 1 | ||||||||
| Total capital DTLs | 26 | 26 | - | ||||||||
| Total DTLs | 87 | 79 | 8 | ||||||||
| Net admitted DTA | $ | 24 | $ | 23 | $ | 1 | |||||
| 47 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The change in net deferred income taxes comprised the following:
| Years Ended December 31, | |||||||||||
| 2023 | 2022 | 2021 | |||||||||
| (In Millions) | |||||||||||
| Net DTA(L) | $ | 2 | $ | (2) | $ | 19 | |||||
| Less: | Items not recorded in the change in net deferred income taxes: | ||||||||||
| Tax-effect of unrealized gains/(losses) | 12 | 36 | (5) | ||||||||
| Change in net deferred income taxes | $ | 14 | $ | 34 | $ | 14 | |||||
As of December 31, 2023, the Company had no net operating or capital loss carryforwards to include in deferred income taxes. The Company has no tax credit carryforwards included in deferred taxes.
The components of federal and foreign income tax are recorded in the Statutory Statements of Operations and the Statutory Statements of Changes in Capital and Surplus and are different from those which would be obtained by applying the prevailing federal income tax rate to net gain from operations before federal income taxes. The significant items causing this difference are as follows:
| Years Ended December 31, | |||||||||
| 2023 | 2022 | 2021 | |||||||
| (In Millions) | |||||||||
| 21% | 21% | 21% | |||||||
| Provision computed at statutory rate | $ | (15) | $ | (7) | $ | 12 | |||
| Investment items | (6) | (7) | (8) | ||||||
| Nonadmitted assets | - | 1 | (1) | ||||||
| Other | 9 | (1) | (1) | ||||||
| Total statutory income tax (benefit) expense | $ | (12) | $ | (14) | $ | 2 | |||
| Federal and foreign income tax expense | $ | 2 | $ | 20 | $ | 16 | |||
| Change in net deferred income taxes | (14) | (34) | (14) | ||||||
| Total statutory income tax (benefit) expense | $ | (12) | $ | (14) | $ | 2 | |||
The Company paid federal income taxes of $5 million in 2023, $39 million in 2022 and $24 million in 2021.
The total income taxes incurred in the current and prior years that will be available for recoupment in the event of future net capital losses totaled $0 million related to 2023, $2 million related to 2022, and $5 million related to 2021.
The Company is included in a consolidated U.S. federal income tax return with its parent, MassMutual, a mutual life insurance company domiciled in the Commonwealth of Massachusetts, and MassMutual’s eligible U.S. subsidiaries. The Company also files income tax returns in various states and foreign jurisdictions. The Company, MassMutual, and MassMutual’s eligible subsidiaries and certain affiliates (the Parties) have executed and are subject to a written tax allocation agreement (the Agreement). The Agreement sets forth the manner in which the total combined federal income tax is allocated among the Parties. The Agreement provides the Company with the enforceable right to recoup federal income taxes paid in prior years in the event of future net capital losses, which it may incur. Further, the Agreement provides the Company with the enforceable right to utilize its net losses carried forward as an offset to future net income subject to federal income taxes. In accordance with the Agreement, future corporate alternative minimum tax (CAMT) is outside of the scope of the general tax allocation method and, consequently any future CAMT liability of a subsidiary shall be allocated solely to MassMutual.
Companies are generally required to disclose unrecognized tax benefits, which are the tax effect of positions taken on their tax returns that may be challenged by various taxing authorities, in order to provide users of financial statements
| 48 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
more information regarding potential liabilities. The Company recognizes tax benefits and related reserves in accordance with existing statutory accounting practices for liabilities, contingencies and impairments of assets.
The following is a reconciliation of the beginning and ending liability for unrecognized tax benefits (in millions):
| Balance, January 1, 2023 | $ | 8 |
| Gross change related to positions taken in current year | (1) | |
| Balance, December 31, 2023 | $ | 7 |
Included in the liability for unrecognized tax benefits as of December 31, 2023 are $7 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility. The liability for the unrecognized tax benefits as of December 31, 2023 includes no unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate.
The Company recognizes accrued interest and penalties related to the liability for unrecognized tax benefits as a component of the provision for income taxes. The amount of net interest recognized was immaterial as of December 31, 2023 and 2022. The Company has no accrued penalties related to the liability for unrecognized tax benefits. In the next year, the Company does not anticipate the total amount of uncertain tax positions to significantly increase or decrease.
The Internal Revenue Service (IRS) has completed its examination of MassMutual and its subsidiaries for the year 2013 and prior. The 2014-2016 tax years are in the process of going to Appeals for 3 carryforward issues. The IRS completed its examination of the 2017-2018 tax years and is being transferred to Appeals. The adjustments resulting from these examinations are not expected to materially affect the position or liquidity of the Company.
As of December 31, 2023 and 2022, the Company did not recognize any protective deposits as admitted assets.
a. Admitted negative (disallowed) IMR
As of December 31,2023, the Company had $150 million of negative (disallowed) IMR in aggregate and in the general account.
As of December 31, 2023, the Company had $150 million of negative (disallowed) IMR admitted in the general account.
As of December 31, 2023, the calculated adjusted general capital and surplus was $1,814 million.
As of December 31, 2023, the percentage of adjusted general capital and surplus for which the admitted disallowed IMR represents was 8%.
The following represents allocated gains (losses) previously deferred to the IMR from derivatives:
| December 31, 2023 | ||||
| (In Millions) | ||||
| Realized capital gains | 371 | |||
| Realized capital losses | (509) | |||
| Total allocated gains (losses) to IMR from derivatives | $ | (138) | ||
When the Company sells bonds and recognizes losses due to interest-rate related factors, and the realized losses are transferred to the IMR, the sales proceeds are generally used for reinvestment as governed by prudent asset liability management (ALM) policies and procedures. Such sales of bonds are intermittently used to meet liquidity needs and managed within the ALM framework.
| 49 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
IMR losses for fixed income related derivatives were in accordance with documented risk management procedures, as well as the Company’s derivative use plans, and reflect the same historical treatment of derivative gains reversed to IMR and amortized rather than immediately recognized as realized gain upon termination.
b. Deferred and uncollected life insurance premium
Deferred and uncollected life insurance premium, net of loading and reinsurance, are included in other than invested assets in the Company’s Statutory Statements of Financial Position. The following summarizes the deferred and uncollected life insurance premium on a gross basis, as well as net of loading and reinsurance:
| December 31, | ||||||||||||
| 2023 | 2022 | |||||||||||
| Gross | Net | Gross | Net | |||||||||
| (In Millions) | ||||||||||||
| Ordinary new business | $ | - | $ | - | $ | (1) | $ | - | ||||
| Ordinary renewal | (5) | (5) | (7) | (13) | ||||||||
| Total | $ | (5) | $ | (5) | $ | (8) | $ | (13) | ||||
Deferred premium is the portion of the annual premium not earned at the reporting date. Loading on deferred premium is an amount obtained by subtracting the valuation net deferred premium from the gross deferred premium and generally includes allowances for acquisition costs and other expenses. Refer to Note 2p. “Policyholders’ reserves” for information on the Company’s accounting policies regarding gross premium and net premium.
Uncollected premium is gross premium net of reinsurance that is due and unpaid as of the reporting date, net of loading. Net premium is the amount used in the calculation of reserves. The change in deferred and uncollected life insurance premium is included in premium income. The change in loading is included as an expense and is not shown as a reduction to premium income.
Ordinary new business and ordinary renewal business consist of the basic amount of premium required on the underlying life insurance policies.
In certain instances, gross premium is less than net premium according to the standard valuation set by the Division and the Department. The gross premium is less than the net premium needed to establish the reserves because the statutory reserves must use standard conservative valuation mortality tables, while the gross premium calculated in pricing uses mortality tables that reflect both the Company’s experience and the transfer of mortality risk to reinsurers. The Company had life insurance in force of $10,659 million as of December 31, 2023 and $6,850 million as of December 31, 2022 for which gross premium was less than net premium.
| 50 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| a. | Policyholders’ reserves |
The Company had life insurance in force of $33,842 million as of December 31, 2023 and $26,262 million as of December 31, 2022.
The following summarizes policyholders’ reserves, net of reinsurance, and the range of interest rates by type of product:
| December 31, | ||||||||||||||
| 2023 | 2022 | |||||||||||||
| Amount | Interest Rates | Amount | Interest Rates | |||||||||||
| ($ In Millions) | ||||||||||||||
| Individual annuities | $ | 2,382 | 1.0% | - | 9.0% | $ | 2,878 | 1.0% | - | 9.0% | ||||
| Individual universal and variable life | 695 | 4.0% | - | 4.5% | 719 | 4.0% | - | 4.5% | ||||||
| Individual life | 102 | 3.5% | - | 4.8% | 112 | 3.0% | - | 4.8% | ||||||
| Total | $ | 3,179 | $ | 3,709 | ||||||||||
Individual life includes whole life and term insurance.
b. Liabilities for deposit-type contracts
Supplementary contracts not involving life contingencies of $56 million as of December 31, 2023 and $68 million as of December 31, 2022 were included in liabilities for deposit-type contracts. The interest rate range on supplementary contracts was 1.00% to 6.50% as of December 31, 2023 and 1.00% to 6.50% as of December 31, 2022.
c. Additional liability for annuity contracts
Certain variable annuity contracts include additional death benefit features. Election of these benefits is generally only available at contract issue.
The following shows the liabilities for GMDBs (in millions):
| Liability as of January 1, 2022 | $ | 1 | |
| Liability as of December 31, 2022 | - | ||
| Incurred guarantee benefits | 26 | ||
| Paid guarantee benefits | (1) | ||
| Liability as of December 31, 2023 | $ | 25 | |
The Company held deterministic reserves as of December 31, 2023 and December 31, 2022.
| 51 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following summarizes the account values, net amount at risk and weighted average attained age for variable annuity contracts with GMDBs classified as policyholders’ reserves and separate account liabilities. The net amount at risk is defined as the minimum guarantee less the account value calculated on a policy-by-policy basis, but not less than zero.
| December 31, | |||||||||||||||
| 2023 | 2022 | ||||||||||||||
| Net | Weighted | Net | Weighted | ||||||||||||
| Account | Amount | Average | Account | Amount | Average | ||||||||||
| Value | at Risk | Attained Age | Value | at Risk | Attained Age | ||||||||||
| ($ In Millions) | |||||||||||||||
| GMDB | $ | 1,331 | $ | 17 | 68 | $ | 1,320 | $ | 40 | 68 | |||||
Account values of variable annuity contracts with GMDBs are summarized below:
| December 31, | ||||||
| 2023 | 2022 | |||||
| (In Millions) | ||||||
| Separate account | $ | 1,063 | $ | 987 | ||
| General account | 268 | 333 | ||||
| Total | $ | 1,331 | $ | 1,320 | ||
d. Additional liability for individual life contracts
Certain universal life and variable universal life contracts include features such as GMDBs or other guarantees that ensure continued death benefit coverage when the policy would otherwise lapse. The value of the guarantee is only available to the beneficiary in the form of a death benefit.
The changes in the liability, net of reinsurance, for guarantees on universal life and variable universal life type contracts was as follows:
| December 31, | ||||||
| 2023 | 2022 | |||||
| (In Millions) | ||||||
| Beginning balance | $ | 240 | $ | 127 | ||
| Net liability increase (decrease) | (14) | 113 | ||||
| Ending balance | $ | 226 | $ | 240 | ||
| 52 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The Company enters into reinsurance agreements with affiliated and unaffiliated insurers in the normal course of business in order to mitigate the impact of underwriting mortality and morbidity risks. Such transfers do not relieve the Company of its primary liability to its customers and, as such, failure of reinsurers to honor their obligations could result in credit losses that could arise if a reinsurer defaults. The Company reduces reinsurance default risk by evaluating the financial condition of reinsurers and monitoring for possible concentrations within the Company’s reinsurers and using trust structures, when appropriate. The Company reinsures a portion of its mortality risk in its life business under either a first dollar quota-share arrangement or an in excess of the retention limit arrangement with reinsurers. The amounts reinsured are on a yearly renewable term or coinsurance basis. The Company’s highest retention limit for new issues of life policies ranges from $15 million to $35 million.
Refer to Note 14. “Related party transactions” for information about the Company’s affiliated ceded reinsurance transactions.
There are no reinsurance agreements in effect under which the reinsurer may unilaterally cancel any reinsurance for reasons other than for nonpayment of premium or other similar credits. The Company has no reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.
Reinsurance amounts included in the Statutory Statements of Operations were as follows:
| Years Ended December 31, | |||||||||
| 2023 | 2022 | 2021 | |||||||
| (In Millions) | |||||||||
| Direct premium | $ | 477 | $ | 942 | $ | 1,059 | |||
| Premium ceded | (350) | (718) | (782) | ||||||
| Total net premium | $ | 127 | $ | 224 | $ | 277 | |||
| Ceded reinsurance recoveries | $ | 265 | $ | 204 | $ | 312 | |||
Reinsurance amounts included in the Statutory Statements of Financial Position were as follows:
| December 31, | |||||
| 2023 | 2022 | ||||
| (In Millions) | |||||
| Reinsurance reserves ceded | $ | (5,560) | $ | (5,436) | |
| Ceded amounts recoverable | 70 | 57 | |||
Reinsurance reserves ceded to affiliated and unaffiliated reinsurers as of December 31, 2023 include $828 million associated with life insurance policies and $4,222 million for annuity. Reinsurance reserves ceded to affiliated and unaffiliated reinsurers as of December 31, 2022 include $1,399 million associated with life insurance policies and $4,037 million for annuity.
| 53 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
As of December 31, 2023, one reinsurer accounted for 33% of the outstanding balance of the unaffiliated reinsurance recoverables and the next largest reinsurer had 18%. Overall, the Company believes that each of these exposures to a single reinsurer does not create an undue concentration of risk and the Company’s business is not substantially dependent upon any single reinsurer.
10. Withdrawal characteristics
a. Annuity actuarial reserves and liabilities for deposit-type contracts
The withdrawal characteristics of the Company’s annuity actuarial reserves and deposit-type contracts as of December 31, 2023 are illustrated below:
| Individual annuities | General Account | Separate Account with Guarantees | Separate Account Non- Guaranteed | Total | % of Total | |||||||||||||||
| (In Millions) | ||||||||||||||||||||
| Subject to discretionary withdrawal: | ||||||||||||||||||||
| With market value adjustment | $ | 11 | $ | - | $ | - | $ | 11 | - | % | ||||||||||
| At book value less current surrender charge of 5% or more | 4,691 | - | - | 4,691 | 61 | |||||||||||||||
| At fair value | - | - | 1,068 | 1,068 | 14 | |||||||||||||||
| Total with market value adjustment or at fair value | 4,702 | - | 1,068 | 5,770 | 75 | |||||||||||||||
| At book value without adjustment (minimal or no charge or adjustment) | 1,854 | - | - | 1,854 | 25 | |||||||||||||||
| Not subject to discretionary withdrawal | 23 | - | - | 23 | - | |||||||||||||||
| Total | $ | 6,579 | $ | - | $ | 1,068 | $ | 7,647 | 100 | % | ||||||||||
| Reinsurance ceded | 4,222 | - | - | 4,222 | ||||||||||||||||
| Total, net of reinsurance | $ | 2,357 | $ | - | $ | 1,068 | $ | 3,425 | ||||||||||||
| Amount included in book value without adjustment after statement date | 15 | - | - | 15 | ||||||||||||||||
| Deposit-type contracts | General Account | Separate Account with Guarantees | Separate Account Non- Guaranteed | Total | % of Total | |||||||||||||||
| (In Millions) | ||||||||||||||||||||
| Subject to discretionary withdrawal: | ||||||||||||||||||||
| At book value without adjustment (minimal or no charge or adjustment) | $ | 41 | $ | - | $ | - | $ | 41 | 73 | |||||||||||
| Not subject to discretionary withdrawal | 15 | - | - | 15 | 27 | |||||||||||||||
| Total | $ | 56 | $ | - | $ | - | $ | 56 | 100 | % | ||||||||||
| Total, net of reinsurance | $ | 56 | $ | - | $ | - | $ | 56 | ||||||||||||
| 54 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following is a summary of total annuity actuarial reserves and liabilities for deposit-type contracts as of December 31, 2023 (in millions):
| Statutory Statements of Financial Position: | ||
| Policyholders’ reserves – individual annuities | $ | 2,356 |
| Liabilities for deposit-type contracts | 56 | |
| Subtotal | 2,412 | |
| Separate Account Annual Statement: | ||
| Annuities | 1,068 | |
| Total | $ | 3,480 |
b. Analysis of life actuarial reserves by withdrawal characteristics
The withdrawal characteristics of the Company’s life actuarial reserves as of December 31, 2023 are illustrated below:
| General Account | |||||||||||
| Account | Cash | ||||||||||
| Value | Value | Reserve | |||||||||
| (In Millions) | |||||||||||
| Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
| Universal life | $ | 179 | $ | 179 | $ | 181 | |||||
| Universal life with secondary guarantees | 775 | 772 | 1,707 | ||||||||
| Other permanent cash value life insurance | - | 70 | 84 | ||||||||
| Variable universal life | 69 | 74 | 87 | ||||||||
| Not subject to discretionary withdrawal or no cash values: | |||||||||||
| Term policies without cash value | - | - | 19 | ||||||||
| Disability - active lives | - | - | 1 | ||||||||
| Disability - disabled lives | - | - | 17 | ||||||||
| Miscellaneous reserves | - | - | 40 | ||||||||
| Total (gross: direct + assumed) | $ | 1,023 | $ | 1,095 | $ | 2,136 | |||||
| Reinsurance ceded | 569 | 568 | 1,338 | ||||||||
| Total (net) | $ | 454 | $ | 527 | $ | 798 | |||||
Separate Account Nonguaranteed
| Account | Cash | ||||||||||
| Value | Value | Reserve | |||||||||
| (In Millions) | |||||||||||
| Subject to discretionary withdrawal, surrender values, or policy loans: | |||||||||||
| Variable universal life | $ | 662 | $ | 662 | $ | 662 | |||||
| Not subject to discretionary withdrawal or no cash values: | |||||||||||
| Total (gross: direct + assumed) | $ | 662 | $ | 662 | $ | 662 | |||||
| Total (net) | $ | 662 | $ | 662 | $ | 662 | |||||
| 55 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
c. Separate accounts
The Company has nonguaranteed separate accounts which are variable accounts where the benefit is determined by the performance and/or market value of the investments held in the separate account with incidental risk, notional expense and minimum death benefit guarantees.
Information regarding the separate accounts of the Company as of and for the year ended December 31, 2023 is as follows:
| Non | |||||
| Guaranteed | |||||
| (In Millions) | |||||
| Net premium, considerations or deposits for the year ended December 31, 2023 | $ | 41 | |||
| Reserves at December 31, 2023: | |||||
| For accounts with assets at: | |||||
| Fair value | $ | 1,730 | |||
| Nonpolicy liabilities | 2 | ||||
| Total | $ | 1,732 | |||
| Reserves by withdrawal characteristics: | |||||
| Subject to discretionary withdrawal: | |||||
| At fair value | $ | 1,730 | |||
| Nonpolicy liabilities | 2 | ||||
| Total | $ | 1,732 | |||
The Company does not have any reserves in separate accounts for asset default risk in lieu of AVR.
The following is a reconciliation of amounts reported as transfers (from) to separate accounts in the Summary of Operations of the Company’s NAIC Separate Account Annual Statement to the amounts reported as net transfers (from) to separate accounts in change in policyholders’ reserves in the accompanying Statutory Statements of Operations:
| Years Ended December 31, | ||||||||||||
| 2023 | 2022 | 2021 | ||||||||||
| (In Millions) | ||||||||||||
| From the Separate Account Annual Statement: | ||||||||||||
| Transfers to separate accounts | $ | 41 | $ | 37 | $ | 40 | ||||||
| Transfers from separate accounts | (141) | (141) | (189) | |||||||||
| Net transfers from separate accounts | $ | (100) | $ | (104) | $ | (149) | ||||||
11. Changes in capital and surplus
MassMutual has authorized the contribution of funds to the Company sufficient to meet the capital requirements of each state in the U.S. in which the Company is licensed to do business. Substantially all of the statutory capital and surplus is subject to dividend restrictions. Dividend restrictions, imposed by state regulations, limit the payment of dividends to the shareholder without prior approval from the Department. Under these regulations, $191 million of capital and surplus is available for distribution to the shareholder in 2024 without prior regulatory approval. The company did not pay a dividend to MassMutual in 2023, paid a dividend of $163 million in 2022 and $173 million in 2021. The Company received a capital contribution from MMLIC of $50 million in 2022.
| 56 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
12. Presentation of the Statutory Statements of Cash Flows
The following table presents those transactions that have affected the Company’s recognized assets or liabilities but have not resulted in cash receipts or payments during the years ended December 31, 2023, 2022 and 2021. Accordingly, the Company has excluded these non-cash activities below from the Statutory Statement of Cash Flows for the years ended December 31, 2023, 2022 and 2021.
| Years Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Net investment income payment in-kind bonds | $ | 16 | $ | - | $ | 1 | ||
| Bond conversions and refinancing | 10 | 27 | 17 | |||||
| Stock conversions | 5 | - | 1 | |||||
| Bonds to transferred to partnerships and limited liability companies | - | 7 | - | |||||
| Bonds transferred to mortgage loans | - | 2 | 22 | |||||
13. Business risks, commitments and contingencies
a. Risks and uncertainties
The Company operates in a business environment subject to various risks and uncertainties. The principal risks include insurance and underwriting risks, investment and interest rate risks, currency exchange risk and credit risk. The combined impact of these risks could have a material, adverse effect on the Company’s financial statements or result in operating losses in future periods. The Company employs the use of reinsurance, portfolio diversification, asset/liability management processes and other risk management techniques to mitigate the impact of these risks.
Insurance and underwriting risks
The Company prices its products based on estimated benefit payments reflecting assumptions with respect to mortality, longevity, persistency, interest rates and other factors. If actual policy experience emerges that is significantly and adversely different from assumptions used in product pricing, the effect could be material to the profitability of the Company.
Investment and interest rate risks
The fair value, cash flows and earnings of investments can be influenced by a variety of factors including changes in interest rates, credit spreads, equity markets, portfolio asset allocation and general economic conditions. The Company employs a rigorous asset/liability management process to help mitigate the economic impacts of various investment risks, in particular interest rate risk. By effectively matching the market sensitivity of assets with the liabilities they support, the impact of interest rate changes is addressed, on an economic basis, as the change in the value of the asset is offset by a corresponding change in the value of the supported liability. The Company uses derivatives, such as interest rate swaps and swaptions, as well as synthetic assets to reduce interest rate and duration imbalances determined in asset/liability analyses.
The levels of U.S. interest rates are influenced by U.S. monetary policies and by the relative attractiveness of U.S. markets to investors versus other global markets. As interest rates increase, certain debt securities may experience amortization or prepayment speeds that are slower than those assumed at purchase, impacting the expected maturity of these securities and the ability to reinvest the proceeds at the higher yields. Rising interest rates may also result in a decrease in the fair value of the investment portfolio. As interest rates decline, certain debt securities may experience accelerated amortization and prepayment speeds than what was assumed at purchase. During such periods, the Company is at risk of lower net investment income as it may not be able to reinvest the proceeds at comparable yields. Declining interest rates may also increase the fair value of the investment portfolio.
| 57 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Interest rates also have an impact on the Company’s products with guaranteed minimum payouts and on interest credited to account holders. As interest rates decrease, investment spreads may contract as crediting rates approach minimum guarantees, resulting in an increased liability.
In periods of increasing interest rates, policy loans, surrenders and withdrawals may increase as policyholders seek investments with higher perceived returns. This could result in cash outflows requiring the Company to sell invested assets at a time when the prices of those assets are adversely affected by the increase in market interest rates, which could cause the Company to realize investment losses.
Currency exchange risk
The Company has currency risk due to its non-U.S. dollar investments. The Company mitigates currency risk through the use of cross-currency swaps and forward contracts. Cross-currency swaps are used to minimize currency risk for certain non-U.S. dollar assets through a pre-specified exchange of interest and principal. Forward contracts are used to hedge movements in exchange rates.
Credit and other market risks
The Company manages its investments to limit credit and other market risks by diversifying its portfolio among various security types and industry sectors as well as purchasing credit default swaps to transfer some of the risk.
Stressed conditions, volatility and disruptions in global capital markets or in particular markets or financial asset classes can have an adverse effect on the Company, in part because the Company has a large investment portfolio and assets supporting the Company’s insurance liabilities are sensitive to changing market factors. Global market factors, including interest rates, credit spread, equity prices, real estate markets, foreign currency exchange rates, consumer spending, business investment, government spending, the volatility and strength of the capital markets, deflation and inflation, all affect the business and economic environment and, ultimately, the profitability of the Company’s business. Disruptions in one market or asset class can also spread to other markets or asset classes. Upheavals in the financial markets can also affect the Company’s business through their effects on general levels of economic activity, employment and customer behavior.
The CMBS, RMBS and leveraged loan sectors are sensitive to evolving conditions that can impair the cash flows realized by investors and is subject to uncertainty. Management’s judgment regarding OTTI and estimated fair value depends upon the evolving investment sector and economic conditions. It can also be affected by the market liquidity, a lack of which can make it difficult to obtain accurate market prices for RMBS and other investments, including CMBS and leveraged loans. Any deterioration in economic fundamentals, especially related to the housing sector could affect management’s judgment regarding OTTI.
The Company has investments in structured products exposed primarily to the credit risk of corporate bank loans, corporate bonds or credit default swap contracts referencing corporate credit risk. Most of these structured investments are backed by corporate loans and are commonly known as collateralized loan obligations that are classified as CDO. The portfolios backing these investments are actively managed and diversified by industry and individual issuer concentrations. Due to the complex nature of CDO and the reduced level of transparency to the underlying collateral pools for many market participants, the recovery in CDO valuations generally lags the overall recovery in the underlying assets. Management believes its scenario analysis approach, based primarily on actual collateral data and forward looking assumptions, does capture the credit and most other risks in each pool. However, in a rapidly changing economic environment, the credit and other risks in each collateral pool will be more volatile and actual credit performance of CDO may differ from the Company’s assumptions.
The Company continuously monitors its investments and assesses their liquidity and financial viability; however, the existence of the factors described above, as well as other market factors, could negatively impact the market value of the Company’s investments. If the Company sells its investments prior to maturity or market recovery, these investments may yield a return that is less than the Company otherwise would have been able to realize.
Asset-based fees calculated as a percentage of the separate account assets are a source of revenue to the Company. Gains and losses in the investment markets may result in corresponding increases and decreases in the Company’s separate account assets and related revenue.
| 58 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The long-term impact of the COVID-19 pandemic is dependent on numerous factors including, but not limited to, the length and severity of the pandemic, the efficacy and rate of vaccine adoption and therapeutics, the responses to the pandemic taken by governments and private sector businesses, and the impacts on MassMutual’s policyholders, employees and counterparties. At its height, the pandemic led to significant economic disruption, including significant volatility in the U.S. and international markets, which had an adverse effect on MassMutual’s business. The extent to which the COVID-19 pandemic continues to impact MassMutual’s business will depend on future developments which are highly uncertain, including the emergence of future variants of COVID-19 and the efficacy of vaccines in the broader population (including with respect to future variants).
Political Uncertainties
Political events, domestically or internationally, may directly or indirectly trigger or exacerbate risks related to product offerings, profitability, or any of the risk factors described above. Whether those underlying risk factors are driven by geopolitics or not, the Company’s dynamic approach to managing risks enables management to identify risks, internally and externally, develop mitigation plans, and respond to risks in an attempt to proactively reduce the potential impact of each underlying risk factor on the Company.
b. Guaranty funds
The Company is subject to state insurance guaranty fund laws. These laws assess insurance companies’ amounts to be used to pay benefits to policyholders and policy claimants of insolvent insurance companies. Many states allow these assessments to be credited against future premium taxes. The Company believes such assessments in excess of amounts accrued will not materially impact its financial position, results of operations or liquidity.
c. Litigation and regulatory matters
In the normal course of business, the Company is involved in disputes, litigation and governmental or regulatory inquiries, administrative proceedings, examinations and investigations, both pending and threatened. These matters, if resolved adversely against the Company or settled, may result in monetary damages, fines and penalties or require changes in the Company’s business practices. The resolution or settlement of these matters is inherently difficult to predict. Based upon the Company’s assessment of these pending matters, the Company does not believe that the amount of any judgment, settlement or other action arising from any pending matter is likely to have a material adverse effect on the statement of financial position. However, an adverse outcome in certain matters could have a material adverse effect on the results of operations for the period in which such matter is resolved, or an accrual is determined to be required, on the financial statement financial position, or on our reputation.
The Company evaluates the need for accruals of loss contingencies for each matter. When a liability for a matter is probable and can be estimated, the Company accrues an estimate of the loss offset by related insurance recoveries or other contributions, if any. An accrual may be subject to subsequent adjustment as a result of additional information and other developments. The resolution of matters are inherently difficult to predict, especially in the early stages of matter. Even if a loss is probable, due to many complex factors, such as speed of discovery and the timing of court decisions or rulings, a loss or range of loss may not be reasonably estimated until the later stages of the matter. For matters where a loss is material and it is either probable or reasonably possible then it is disclosed. For matters where a loss may be reasonably possible, but not probable, or is probable but not reasonably estimated, no accrual is established, but the matter, if material, is disclosed.
d. Commitments
In the normal course of business, the Company enters into commitments to purchase certain investments. The majority of these commitments have funding periods that extend between one and five years. The Company is not required to fund commitments once the commitment period expires.
| 59 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
As of December 31, 2023, the Company had the following outstanding commitments:
| 2024 | 2025 | 2026 | 2027 | 2028 | Thereafter | Total | |||||||||||||||
| (In Millions) | |||||||||||||||||||||
| Private placements | $ | 92 | $ | 18 | $ | 11 | $ | 14 | $ | 4 | $ | 15 | $ | 154 | |||||||
| Mortgage loans | 4 | 1 | 1 | - | 5 | 1 | 12 | ||||||||||||||
| Partnerships and LLCs contributions) | 6 | 1 | 10 | 2 | - | 18 | 37 | ||||||||||||||
| Total | $ | 102 | $ | 20 | $ | 22 | $ | 16 | $ | 9 | $ | 34 | $ | 203 | |||||||
14. Related party transactions
Pursuant to a management agreement, MassMutual, for a fee, furnishes the Company, as required, operating facilities, human resources, computer software development and managerial services. Investment and administrative services are also provided to the Company pursuant to a management services agreement with MassMutual. While management believes that these fees are calculated on a reasonable basis, these fees may not necessarily be indicative of the costs that would have been incurred on a stand-alone basis.
The following table summarizes the transactions between the Company and the related parties:
| Years Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Fee income: | ||||||||
| Recordkeeping and other services | $ | - | $ | 1 | $ | 2 | ||
| Fee expense: | ||||||||
| Management and service contracts and cost-sharing arrangements | 62 | 77 | 82 | |||||
The Company reported less than $1 million as amounts due from affiliates as of December 31, 2023 and 2022. The Company reported $17.5 million as amounts due to subsidiaries and affiliates as of December 31, 2023 and $24 million as of December 31, 2022. Terms generally require settlement of these amounts within 30 to 90 days.
As of December 31, 2023, MMIH and C.M. Life, together, provided financing of $5,500 million ($5,253 million and $247 million respectively), for MassMutual Asset Finance, LLC (MMAF) that can be used to finance ongoing asset purchases. The Company provided financing of $247 million as of December 31, 2023 and $247 million as of December 31, 2022. During 2023, MMAF borrowed $106 million and repaid $53 million under the MMAF credit facility. During 2022, MMAF borrowed $107 million and repaid $104 million under the MMAF credit facility. Outstanding borrowings under the facility with the Company were $227 million as of December 31, 2023 and $174 million as of December 31, 2022. Interest for these borrowings was $6 million for the year ended December 31, 2023 and $4 million for the year ended December 31, 2022. The floating rate borrowings bear interest at a spread over the 30 day SOFR. The fixed rate borrowings bear an interest at a spread over average life Treasuries.
Together, MassMutual and the Company, provide a credit facility to Jefferies Finance, LLC whereby Jefferies Finance, LLC (Jefferies) borrows cash through short-term approved financings to fund the purchase of loans for securitization. During 2023, Jefferies borrowed $9 million and repaid $9 million under the credit facility. During 2022, Jefferies borrowed $25 million and repaid $25 million under the credit facility. As of December 31, 2023 there were no outstanding borrowings under this facility. All outstanding interest due under the facility, as of December 31, 2023 had been paid. The interest of this facility is calculated based on a full pass through of interest accrued on the underlying loans purchased.
In 2023, C.M. Life sold approximately $563 million of private placement corporate assets to MassMutual Life. This resulted in a realized loss of $56 million.
| 60 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
In 2022, the Company declared and paid $163 million in dividends to MassMutual.
The Company has coinsurance agreements with MassMutual where the Company cedes substantially all of the premium on certain universal life policies. In return, MassMutual pays to the Company a stipulated expense allowance and death and surrender benefits. MassMutual holds the assets and related reserves for payment of future benefits on the ceded policies.
Effective December 31, 2020, MassMutual provides the Company a stop-loss coverage to transfer a specific interest rate risk. All Odyssey fixed-deferred annuity contracts issued by the Company are covered under this agreement. The Company pays an annual premium to MassMutual. If the coverage is triggered, there will be a settlement at year end from MassMutual to the Company. MassMutual provides maximum coverage of $200 million over the seven-year duration of this agreement.
As of December 31, 2023, the net amounts due from MassMutual for the various reinsurance agreements were $18 million and as of December 31, 2022, the net amounts due from MassMutual were $30 million. These outstanding balances are due and payable with terms ranging from quarterly to annually, depending on the agreement in effect.
The following summarizes the related party reinsurance transactions between the Company and MassMutual:
| Years Ended December 31, | ||||||||
| 2023 | 2022 | 2021 | ||||||
| (In Millions) | ||||||||
| Premium ceded, related to: | ||||||||
| Stop-loss agreements | $ | (2) | $ | (2) | $ | (3) | ||
| Coinsurance agreements | (37) | (36) | (40) | |||||
| Expense allowances on reinsurance ceded, included in fees and other income, related to: | ||||||||
| Coinsurance agreements | 7 | 6 | 7 | |||||
| Policyholder benefits ceded, related to: | ||||||||
| Coinsurance agreements | 83 | 64 | 127 | |||||
| Accrual for stop-loss agreement | - | 18 | - | |||||
| 61 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
15. Subsidiaries and affiliated companies
A summary of ownership and relationship of the Company and its subsidiaries and affiliated companies as of December 31, 2023 is illustrated below. Subsidiaries are wholly owned, except as noted.
Subsidiaries of MassMutual
100 w. 3rd Street LLC
300 South Tryon Hotel LLC
300 South Tryon LLC
5301 Wisconsin Avenue GP, LLC
Barings Affordable Housing Mortgage Fund I LLC
Barings Affordable Housing Mortgage Fund II LLC
Barings Affordable Housing Mortgage Fund III LLC
Barings California Mortgage Fund IV
Barings CLO Investment Partners LP
Barings Hotel Opportunity Venture I GP, LLC
Berkshire Way LLC
C.M. Life Insurance Company
CML Global Capabilities LLC
Cornbrook PRS Holdings LLC
Cornerstone California Mortgage Fund I LLC
Cornerstone California Mortgage Fund II LLC
Cornerstone California Mortgage Fund III LLC
Cornerstone Permanent Mortgage Fund IV
Cornerstone Permanent Mortgage Fund LLC
Counterpointe Sustainable Advisors LLC
CREA Ridge Apartments, LLC
DPI Acres Capital SPV LLC
DPI-ACRES Capital LLC
DPI-ARES Mortgage Lending LLC
DPI-ARES Mortgage Lending SPV, LLC
E2E Affordable Housing Debt Fund LLC
EM Opportunities LLC
GIA EU Holdings - Emerson JV Sarl
GIA EU Holdings LLC
Glidepath Holdings Inc.
Insurance Road LLC
ITPSHolding LLC
JFIN Parent LLC
Landmark Manchester Holdings LLC
London Office JV Holdings LLC
MALIC Debt Participations LLC
Martello Re Limited – 27.45%
Massachusetts Mutual Life Insurance Company (MMLIC)
| 62 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
MassMutual 20/80 Allocation Fund
MassMutual 40/60 Allocation Fund
MassMutual 60/40 Allocation Fund
MassMutual Balanced Fund
MassMutual Blue Chip Growth Fund
MassMutual Core Bond Fund
MassMutual Disciplined Growth Fund
MassMutual Disciplined Value Fund
MassMutual Diversified Value Fund
MassMutual Equity Opportunities Fund
MassMutual External Benefits Group LLC
MassMutual Growth Opportunities Fund
MassMutual Holding LLC
MassMutual Inflation-Protected and Income Fund
MassMutual International LLC
MassMutual MCAM Insurance Company, Inc.
MassMutual Mid Cap Growth Fund
MassMutual Mortgage Lending LLC
MassMutual Premier Diversified Bond Fund
MassMutual RetireSMART by JPMorgan 2065 Fund
MassMutual Select 80/20 Allocation Fund
MassMutual Select Fundamental Value Fund
MassMutual Select Overseas Fund
MassMutual Small Cap Growth Equity Fund
MassMutual Small Cap Opportunities Fund
MassMutual Small Cap Value Equity Fund
MassMutual Strategic Bond Fund
MassMutual Ventures Europe/APAC I GP, LLC
Miami Douglas Three MM, LLC
MM Ascend Mtg. Lending LLC
MM CM Holding LLC
| 63 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
MM Global Capabilities I LLC
MM Global Capabilities II LLC
MM Global Capabilities III LLC
MM Investment Holding
MM Private Equity Intercontinental LLC
MM REED District Landco Member LLC
MM Subline Borrower LLC
MM/Barings Multifamily TEBS 2020 LLC
MML CM LLC
MML Investment Advisers, LLC
MML Private Equity Fund Investor LLC
MML Private Placement Investment Company I, LLC
MML Series International Equity Fund
MML Special Situations Investor LLC
MML Strategic Distributors, LLC
MMV CTF I GP LLC
MSP-SC, LLC
Paco France Logistics LLC
Pioneers Gate LLC
Riverwalk MM Member, LLC
Ten Fan Pier Boulevard LLC
The MassMutual Trust Company, FSB
Timberland Forest Holding LLC
Tower Square Capital Partners IIIA, L.P.
Unna, Dortmund Holding LLC
Washington Pine LLC
Subsidiaries of MassMutual Holding LLC
Barings LLC
Fern Street LLC
Haven Life Insurance Agency, LLC
HB Naples Golf Owner LLC
Intermodal Holding II LLC
LifeScore Labs, LLC
Marco Hotel LLC
MassMutual Assignment Company
MassMutual Capital Partners LLC
MassMutual Ventures Holding LLC
MM Asset Management Holding LLC
MM Catalyst Fund II LLC
MM Catalyst Fund LLC
MM Rothesay Holdco US LLC
MML Investors Services, LLC
RB Apartments LLC
Sleeper Street LLC
Subsidiaries of C.M. Life Insurance Company
CM Life Mortgage Lending LLC
CML Mezzanine Investor III, LLC
CML Special Situations Investor LLC
MML Bay State Life Insurance Company
Subsidiaries of MML Bay State Life Insurance Company
(No subsidiaries)
| 64 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Subsidiaries of MML Investment Advisers, LLC
(No Subsidiaries)
Subsidiaries of MassMutual International LLC
MassMutual Asia Limited (SPV)
MassMutual Solutions LLC
Subsidiaries of MassMutual Solutions LLC
Haven Technologies Asia Limited
Subsidiaries of Copper Hill Road LLC
(No Subsidiaries)
Subsidiaries of MM Investment Holding
MML Management Corporation
MMIH Bond Holdings LLC – 99.61%
Subsidiaries of DPI Acres Capital SPV LLC
(No Subsidiaries)
Subsidiaries of The MassMutual Trust Company, FSB
(No Subsidiaries)
Subsidiaries of ITPS Holding LLC
HITPS LLC
Subsidiaries of JFIN Parent LLC
Apex Credit Holdings LLC
Custom Ecology Holdco, LLC
Tomorrow Parent, LLC
Jefferies Finance LLC LLC – 50%
Subsidiaries of Glidepath Holdings Inc
MassMutual Ascend Life Insurance Company
Subsidiaries of Martello Re Limited
(No Subsidiaries)
Subsidiaries of MML Strategic Distributors, LLC
(No Subsidiaries)
Subsidiaries of MML CM LLC
Blueprint Income LLC
Flourish Holding Company LLC
Subsidiaries of Insurance Road LLC
MassMutual Intellectual Property LLC
MassMutual Trad Private Equity LLC
Trad Investments I LLC
Subsidiaries of MM Rothesay Holdco US LLC
Rothesay Limited
Subsidiaries of Rothesay Limited
Rothesay Asset Management UK Limited
Rothesay Foundation
| 65 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
Rothesay Life Plc
Rothesay Mortgages Limited
Rothesay Pensions Management Limited
Subsidiaries of Baring Asset Management Limited (an indirect subsidiary of Barings LLC)
Baring Fund Managers Limited
Baring International Investment Limited
Baring Investment Services Limited
Barings BME GP S.à.r.l.
Barings Core Fund Feeder I GP S.à.r.l.
Barings European Core Property Fund GP Sàrl
Barings European Direct Lending 1 GP LLP
Barings GPC GP S.à.r.l.
Barings Investment Fund (LUX) GP S.à.r.l.
Barings Umbrella Fund (LUX) GP S.à.r.l.
GPLF4(S) GP S.à r. l
PREIF Holdings Limited Partnership
Subsidiaries of Baring International Investment Limited
(No subsidiaries)
Management of the Company has evaluated subsequent events through February 27, 2024, the date the financial statements were available to be issued to state regulators and subsequently on the Company’s website. No events have occurred subsequent to the date of the Statements of Financial Position.
| 66 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
17. Impairment listing for loan-backed and structured securities
The following are the total cumulative adjustments and impairments for loan-backed and structured securities since July 1, 2009:
| Period Ended | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| December 31, 2023 | $ | 4,801,982 | $ | - | $ | 4,801,982 | $ | 4,566,582 | $ | (235,400) | $ | 4,566,582 | $ | 4,088,857 |
| September 30, 2023 | 2,162,075 | - | 2,162,075 | 2,089,437 | (72,638) | 2,089,437 | 1,988,071 | |||||||
| June 30, 2023 | 1,800,802 | - | 1,800,802 | 1,752,217 | (48,585) | 1,752,217 | 1,684,846 | |||||||
| March 31, 2023 | 3,007,713 | - | 3,007,713 | 2,826,625 | (181,088) | 2,826,625 | 2,584,527 | |||||||
| December 31, 2022 | 3,726,463 | - | 3,726,463 | 3,283,242 | (443,221) | 3,283,242 | 3,150,825 | |||||||
| September 30, 2022 | 1,337,132 | - | 1,337,132 | 1,270,962 | (66,170) | 1,270,962 | 1,195,634 | |||||||
| June 30, 2022 | 1,069,792 | - | 1,069,792 | 949,598 | (120,194) | 949,598 | 917,792 | |||||||
| March 31, 2022 | 1,366,642 | - | 1,366,642 | 1,092,539 | (274,102) | 1,092,539 | 1,084,285 | |||||||
| December 31, 2021 | 153,706 | - | 153,706 | 146,419 | (7,287) | 146,419 | 133,301 | |||||||
| September 30, 2021 | 429,103 | - | 429,103 | 422,210 | (6,893) | 422,210 | 371,650 | |||||||
| June 30, 2021 | 1,130,186 | - | 1,130,186 | 1,019,790 | (110,396) | 1,019,790 | 1,128,667 | |||||||
| March 31, 2021 | 580,686 | - | 580,686 | 541,584 | (39,102) | 541,584 | 539,293 | |||||||
| December 31, 2020 | 2,202,709 | - | 2,202,709 | 1,981,547 | (221,162) | 1,981,547 | 2,127,616 | |||||||
| September 30, 2020 | 3,225,941 | - | 3,225,941 | 2,914,652 | (311,289) | 2,914,652 | 2,881,746 | |||||||
| June 30, 2020 | 1,978,627 | - | 1,978,627 | 1,765,784 | (212,843) | 1,765,784 | 1,794,192 | |||||||
| March 31, 2020 | 2,725,567 | - | 2,725,567 | 2,242,474 | (483,093) | 2,242,474 | 2,684,492 | |||||||
| December 31, 2019 | 395,604 | - | 395,603 | 374,233 | (21,371) | 374,233 | 323,929 | |||||||
| September 30, 2019 | 2,403,817 | - | 2,403,817 | 2,163,454 | (240,363) | 2,163,454 | 1,796,355 | |||||||
| June 30, 2019 | 1,138,783 | - | 1,138,783 | 965,642 | (173,141) | 965,642 | 1,187,758 | |||||||
| March 31, 2019 | 1,165,908 | - | 1,165,908 | 1,155,765 | (10,143) | 1,155,765 | 1,186,451 | |||||||
| December 31, 2018 | 904,746 | - | 904,746 | 770,347 | (134,399) | 770,347 | 817,965 | |||||||
| September 30, 2018 | 496,473 | - | 496,473 | 447,735 | (48,737) | 447,735 | 449,782 | |||||||
| June 30, 2018 | 39,548 | - | 39,548 | 1,365 | (38,183) | 1,365 | 4,435 | |||||||
| March 31, 2018 | 84,116 | - | 84,116 | 56,604 | (27,511) | 56,604 | 56,886 | |||||||
| December 31, 2017 | 21,358 | - | 21,358 | 17,379 | (3,979) | 17,379 | 25,404 | |||||||
| September 30, 2017 | 31,370 | - | 31,370 | 30,181 | (1,188) | 30,181 | 97,082 | |||||||
| June 30, 2017 | 4,452,491 | - | 4,452,491 | 4,378,331 | (74,160) | 4,378,331 | 6,609,233 | |||||||
| March 31, 2017 | 4,815,924 | - | 4,815,924 | 4,784,422 | (31,502) | 4,784,422 | 6,463,013 | |||||||
| December 31, 2016 | 4,846,676 | - | 4,846,676 | 4,829,684 | (16,992) | 4,829,684 | 6,221,820 | |||||||
| September 30, 2016 | 4,994,934 | - | 4,994,934 | 4,730,196 | (264,738) | 4,730,196 | 6,883,514 | |||||||
| June 30, 2016 | 5,054,395 | - | 5,054,395 | 4,955,880 | (98,515) | 4,955,880 | 6,764,218 | |||||||
| March 31, 2016 | 6,298,495 | - | 6,298,495 | 6,092,642 | (205,853) | 6,092,642 | 7,817,461 | |||||||
| December 31, 2015 | 474,546 | - | 474,546 | 468,066 | (6,480) | 468,066 | 467,904 | |||||||
| September 30, 2015 | 5,603,766 | - | 5,603,766 | 5,064,430 | (539,336) | 5,064,430 | 6,491,786 | |||||||
| June 30, 2015 | 8,300,146 | - | 8,300,146 | 8,096,024 | (204,122) | 8,096,024 | 8,991,309 | |||||||
| March 31, 2015 | 4,134,216 | - | 4,134,216 | 4,097,041 | (37,175) | 4,097,041 | 4,062,060 | |||||||
| December 31, 2014 | 9,225,670 | - | 9,225,670 | 9,099,603 | (126,067) | 9,099,603 | 10,324,197 | |||||||
| June 30, 2014 | 6,799,823 | - | 6,799,823 | 6,410,214 | (389,609) | 6,410,214 | 8,821,203 | |||||||
| March 31, 2014 | 10,842,786 | - | 10,842,786 | 9,332,953 | (1,509,833) | 9,332,953 | 11,545,156 | |||||||
| December 31, 2013 | 13,068,728 | - | 13,068,728 | 12,446,803 | (621,925) | 12,446,803 | 13,075,122 | |||||||
| September 30, 2013 | 8,777,769 | - | 8,777,769 | 8,640,444 | (137,325) | 8,640,444 | 8,226,635 | |||||||
| June 30, 2013 | 11,479,347 | - | 11,479,347 | 11,079,158 | (400,190) | 11,079,158 | 10,139,599 | |||||||
| March 31, 2013 | 15,334,535 | - | 15,334,535 | 14,970,376 | (364,159) | 14,970,376 | 14,135,122 | |||||||
| December 31, 2012 | 31,785,329 | - | 31,785,329 | 30,443,342 | (1,341,987) | 30,443,342 | 27,669,977 | |||||||
| September 30, 2012 | 67,270,430 | - | 67,270,430 | 65,265,347 | (2,005,083) | 65,265,347 | 57,019,262 | |||||||
| June 30, 2012 | 70,455,900 | - | 70,455,900 | 69,041,733 | (1,414,167) | 69,041,733 | 55,143,333 | |||||||
| March 31, 2012 | 87,853,178 | - | 87,853,178 | 85,053,001 | (2,800,177) | 85,053,001 | 67,243,938 | |||||||
| December 31, 2011 | 90,342,742 | - | 90,342,742 | 87,759,853 | (2,582,889) | 87,759,853 | 61,663,659 | |||||||
| September 30, 2011 | 62,166,554 | - | 62,166,554 | 60,544,909 | (1,621,646) | 60,544,909 | 45,284,654 | |||||||
| June 30, 2011 | 80,582,827 | - | 80,582,827 | 76,857,393 | (3,725,434) | 76,857,393 | 60,286,999 | |||||||
| March 31, 2011 | 87,925,923 | - | 87,925,923 | 85,768,903 | (2,157,020) | 85,768,903 | 65,285,429 | |||||||
| 67 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| December 31, 2010 | 78,922,237 | - | 78,922,237 | 77,329,041 | (1,593,196) | 77,329,041 | 57,284,607 | |||||||
| September 30, 2010 | 75,579,158 | - | 75,579,158 | 73,844,794 | (1,734,364) | 73,844,794 | 53,531,682 | |||||||
| June 30, 2010 | 106,701,990 | - | 106,701,990 | 104,920,573 | (1,781,417) | 104,920,573 | 77,297,241 | |||||||
| March 31, 2010 | 117,247,145 | - | 117,247,145 | 110,848,178 | (6,398,967) | 110,848,178 | 81,512,593 | |||||||
| December 31, 2009 | 94,759,892 | - | 94,759,892 | 91,319,793 | (3,440,099) | 91,319,793 | 61,154,482 | |||||||
| September 30, 2009 | 203,672,078 | (2,299,537) | 201,372,541 | 193,090,828 | (8,281,714) | 193,090,828 | 124,234,344 | |||||||
| Totals | $ | (2,299,537) | $ | (49,438,619) |
The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2023:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 040104RV5 | $ | 247,565 | $ | - | $ | 247,565 | $ | 240,615 | $ | (6,950) | $ | 240,615 | $ | 137,112 |
| 17311YAC7 | 78,549 | - | 78,549 | 76,506 | (2,043) | 76,506 | 69,892 | |||||||
| 35729RAE6 | 117,174 | - | 117,174 | 114,052 | (3,122) | 114,052 | 98,653 | |||||||
| 40431KAE0 | 196,566 | - | 196,566 | 191,106 | (5,460) | 191,106 | 196,862 | |||||||
| 45071KDD3 | 75,801 | - | 75,801 | 70,772 | (5,029) | 70,772 | 49,240 | |||||||
| 61750FAE0 | 35,204 | - | 35,204 | 33,571 | (1,633) | 33,571 | 23,457 | |||||||
| 84752CAE7 | 28,725 | - | 28,725 | 28,194 | (531) | 28,194 | 15,897 | |||||||
| 45254TSM7 | 64,958 | - | 64,958 | 62,734 | (2,224) | 62,734 | 54,762 | |||||||
| 45660LAU3 | 8,692 | - | 8,692 | 8,045 | (647) | 8,045 | 8,736 | |||||||
| 45660LYW3 | 77,347 | - | 77,347 | 74,153 | (3,194) | 74,153 | 58,008 | |||||||
| 466247XE8 | 81,767 | - | 81,767 | 81,073 | (694) | 81,073 | 58,605 | |||||||
| 761118FM5 | 180,848 | - | 180,848 | 175,556 | (5,292) | 175,556 | 176,505 | |||||||
| 761118RJ9 | 14,248 | - | 14,248 | 14,181 | (67) | 14,181 | 6,969 | |||||||
| 41161PWB5 | 70,383 | - | 70,383 | 69,812 | (571) | 69,812 | 69,385 | |||||||
| 61915RBB1 | 115,075 | - | 115,075 | 115,037 | (38) | 115,037 | 75,773 | |||||||
| 36298XAA0 | 1,153,127 | - | 1,153,127 | 1,141,205 | (11,922) | 1,141,205 | 842,326 | |||||||
| 576433NH5 | 16,810 | - | 16,810 | 16,223 | (587) | 16,223 | 9,996 | |||||||
| 57645LAA2 | 1,082,627 | - | 1,082,627 | 978,080 | (104,547) | 978,080 | 1,172,991 | |||||||
| 86359DMC8 | 1,063,605 | - | 1,063,605 | 984,164 | (79,441) | 984,164 | 873,235 | |||||||
| 86359DME4 | 92,911 | - | 92,911 | 91,503 | (1,408) | 91,503 | 90,453 | |||||||
| Totals | $ | 4,801,982 | $ | - | $ | 4,801,982 | $ | 4,566,582 | $ | (235,400) | $ | 4,566,582 | $ | 4,088,857 |
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2023:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DCF9 | $ | 256,162 | $ | - | $ | 256,162 | $ | 254,500 | $ | (1,662) | $ | 254,500 | $ | 231,625 |
| 1248MGAJ3 | 4,680 | - | 4,680 | 4,528 | (152) | 4,528 | 3,790 | |||||||
| 17311YAC7 | 78,682 | - | 78,682 | 77,872 | (810) | 77,872 | 71,752 | |||||||
| 30247DAD3 | 8,934 | - | 8,934 | 8,691 | (243) | 8,691 | 7,958 | |||||||
| 40431KAE0 | 199,559 | - | 199,559 | 194,166 | (5,393) | 194,166 | 189,107 | |||||||
| 590212AB2 | 5,754 | - | 5,754 | 5,280 | (474) | 5,280 | 5,898 | |||||||
| 84752CAE7 | 17,817 | - | 17,817 | 17,171 | (646) | 17,171 | 15,583 | |||||||
| 68 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| 86363HAB8 | 3,128 | - | 3,128 | 3,042 | (86) | 3,042 | 2,721 | |||||||
| 93934XAB9 | 18,871 | - | 18,871 | 17,574 | (1,297) | 17,574 | 18,577 | |||||||
| 05535DAN4 | 106,747 | - | 106,747 | 82,578 | (24,169) | 82,578 | 85,879 | |||||||
| 45254TSM7 | 64,301 | - | 64,301 | 63,895 | (406) | 63,895 | 54,717 | |||||||
| 45660LYW3 | 62,481 | - | 62,481 | 57,968 | (4,513) | 57,968 | 60,781 | |||||||
| 466247XE8 | 69,583 | - | 69,583 | 68,964 | (619) | 68,964 | 60,519 | |||||||
| 65535VRK6 | 28,134 | - | 28,134 | 25,925 | (2,209) | 25,925 | 27,368 | |||||||
| 761118RJ9 | 9,915 | - | 9,915 | 9,074 | (841) | 9,074 | 7,541 | |||||||
| 86359A6A6 | 98,639 | - | 98,639 | 95,666 | (2,973) | 95,666 | 85,500 | |||||||
| 126694YM4 | 49,401 | - | 49,401 | 48,877 | (524) | 48,877 | 42,399 | |||||||
| 41161PWB5 | 83,346 | - | 83,346 | 82,313 | (1,033) | 82,313 | 69,287 | |||||||
| 61915RBB1 | 84,215 | - | 84,215 | 83,647 | (568) | 83,647 | 76,201 | |||||||
| 36298XAA0 | 893,350 | - | 893,350 | 870,359 | (22,991) | 870,359 | 848,208 | |||||||
| 576433NH5 | 18,376 | - | 18,376 | 17,347 | (1,029) | 17,347 | 22,660 | |||||||
| Totals | $ | 2,162,075 | $ | - | $ | 2,162,075 | $ | 2,089,437 | $ | (72,638) | $ | 2,089,437 | $ | 1,988,071 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2023:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 040104RV5 | $ | 144,675 | $ | - | $ | 144,675 | $ | 140,254 | $ | (4,421) | $ | 140,254 | $ | 138,624 |
| 1248MGAJ3 | 4,727 | - | 4,727 | 4,685 | (42) | 4,685 | 3,877 | |||||||
| 40431KAE0 | 202,855 | - | 202,855 | 198,399 | (4,456) | 198,399 | 197,720 | |||||||
| 45071KDD3 | 49,163 | - | 49,163 | 48,849 | (314) | 48,849 | 48,760 | |||||||
| 61750FAE0 | 25,611 | - | 25,611 | 25,437 | (174) | 25,437 | 23,134 | |||||||
| 12669FKR3 | 4,232 | - | 4,232 | 4,008 | (224) | 4,008 | 3,851 | |||||||
| 23321P6A1 | 256,476 | - | 256,476 | 249,939 | (6,537) | 249,939 | 242,675 | |||||||
| 45660LAU3 | 10,657 | - | 10,657 | 10,002 | (655) | 10,002 | 10,419 | |||||||
| 466247XE8 | 71,210 | - | 71,210 | 70,743 | (467) | 70,743 | 61,499 | |||||||
| 525221AJ6 | 53,824 | - | 53,824 | 53,788 | (36) | 53,788 | 56,079 | |||||||
| 05946XYP2 | 22,043 | - | 22,043 | 21,880 | (163) | 21,880 | 18,608 | |||||||
| 36298XAA0 | 947,305 | - | 947,305 | 916,700 | (30,605) | 916,700 | 872,156 | |||||||
| 92922FBW7 | 8,024 | - | 8,024 | 7,533 | (491) | 7,533 | 7,444 | |||||||
| Totals | $ | 1,800,802 | $ | - | $ | 1,800,802 | $ | 1,752,217 | $ | (48,585) | $ | 1,752,217 | $ | 1,684,846 |
The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2023:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 12624QAC7 | $ | 184,864 | $ | - | $ | 184,864 | $ | 164,248 | $ | (20,616) | $ | 164,248 | $ | 87,625 |
| 36192RAL6 | 150,000 | - | 150,000 | 75,000 | (75,000) | 75,000 | 26,813 | |||||||
| 040104RV5 | 149,208 | - | 149,208 | 142,753 | (6,455) | 142,753 | 142,901 | |||||||
| 040104TG6 | 17,552 | - | 17,552 | 15,757 | (1,795) | 15,757 | 13,697 | |||||||
| 69 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| 1248MGAJ3 | 4,879 | - | 4,879 | 4,734 | (145) | 4,734 | 3,918 | |||||||
| 30247DAD3 | 9,380 | - | 9,380 | 9,055 | (325) | 9,055 | 8,401 | |||||||
| 40431KAE0 | 203,838 | - | 203,838 | 201,989 | (1,849) | 201,989 | 204,087 | |||||||
| 45071KDD3 | 59,104 | - | 59,104 | 49,072 | (10,032) | 49,072 | 49,776 | |||||||
| 590212AB2 | 6,507 | - | 6,507 | 5,649 | (858) | 5,649 | 6,303 | |||||||
| 617463AA2 | 443 | - | 443 | 403 | (40) | 403 | 344 | |||||||
| 61750FAE0 | 26,625 | - | 26,625 | 25,427 | (1,198) | 25,427 | 23,637 | |||||||
| 61750MAB1 | 363 | - | 363 | 348 | (15) | 348 | 335 | |||||||
| 84752CAE7 | 18,351 | - | 18,351 | 17,917 | (434) | 17,917 | 15,887 | |||||||
| 86363HAB8 | 3,359 | - | 3,359 | 3,184 | (175) | 3,184 | 2,870 | |||||||
| 93934XAB9 | 20,947 | - | 20,947 | 18,663 | (2,284) | 18,663 | 19,808 | |||||||
| 362480AD7 | 29,271 | - | 29,271 | 28,586 | (685) | 28,586 | 29,372 | |||||||
| 45254TRX4 | 7,615 | - | 7,615 | 7,501 | (114) | 7,501 | 7,370 | |||||||
| 45254TSM7 | 73,046 | - | 73,046 | 70,533 | (2,513) | 70,533 | 62,754 | |||||||
| 45660LAU3 | 10,832 | - | 10,832 | 10,748 | (84) | 10,748 | 10,647 | |||||||
| 45660LYW3 | 65,471 | - | 65,471 | 62,974 | (2,497) | 62,974 | 63,398 | |||||||
| 466247XE8 | 76,618 | - | 76,618 | 75,295 | (1,323) | 75,295 | 66,059 | |||||||
| 525221AJ6 | 59,596 | - | 59,596 | 53,747 | (5,849) | 53,747 | 59,057 | |||||||
| 761118FM5 | 209,948 | - | 209,948 | 189,550 | (20,398) | 189,550 | 189,653 | |||||||
| 41161PWB5 | 89,888 | - | 89,888 | 88,611 | (1,277) | 88,611 | 72,954 | |||||||
| 45660N5H4 | 127,249 | - | 127,249 | 127,249 | - | 127,249 | 122,739 | |||||||
| 45660NT88 | 1,950 | - | 1,950 | 1,934 | (16) | 1,934 | 1,875 | |||||||
| 92922F5T1 | 125,180 | - | 125,180 | 122,785 | (2,395) | 122,785 | 108,208 | |||||||
| 939336X65 | 206,617 | - | 206,617 | 200,289 | (6,328) | 200,289 | 181,972 | |||||||
| 36298XAA0 | 936,144 | - | 936,144 | 927,502 | (8,642) | 927,502 | 880,045 | |||||||
| 589929N38 | 12,632 | - | 12,632 | 12,370 | (262) | 12,370 | 12,119 | |||||||
| 59020UNZ4 | 8,303 | - | 8,303 | 7,037 | (1,266) | 7,037 | 7,943 | |||||||
| 86359DME4 | 111,933 | - | 111,933 | 105,715 | (6,218) | 105,715 | 101,960 | |||||||
| Totals | $ | 3,007,713 | $ | - | $ | 3,007,713 | $ | 2,826,625 | $ | (181,088) | $ | 2,826,625 | $ | 2,584,527 |
The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2022:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 12624QAC7 | $ | 200,006 | $ | - | $ | 200,006 | $ | 180,006 | $ | (20,000) | $ | 180,006 | $ | 83,625 |
| 36192RAL6 | 150,034 | - | 150,034 | 75,034 | (75,000) | 75,034 | 55,734 | |||||||
| 02660CAH3 | 945 | - | 945 | 854 | (91) | 854 | 19 | |||||||
| 040104RV5 | 156,399 | - | 156,399 | 147,100 | (9,300) | 147,100 | 143,313 | |||||||
| 040104TG6 | 18,089 | - | 18,089 | 17,322 | (767) | 17,322 | 13,798 | |||||||
| 04544TAB7 | 2,666 | - | 2,666 | 724 | (1,942) | 724 | 2,444 | |||||||
| 12479DAC2 | 200,809 | - | 200,809 | 90,080 | (110,729) | 90,080 | 162,465 | |||||||
| 1248MGAJ3 | 5,086 | - | 5,086 | 4,882 | (204) | 4,882 | 4,069 | |||||||
| 17311YAC7 | 78,755 | - | 78,755 | 77,431 | (1,324) | 77,431 | 77,538 | |||||||
| 30247DAD3 | 10,637 | - | 10,637 | 9,445 | (1,192) | 9,445 | 8,584 | |||||||
| 35729RAE6 | 125,865 | - | 125,865 | 114,938 | (10,927) | 114,938 | 100,526 | |||||||
| 40431KAE0 | 207,799 | - | 207,799 | 201,274 | (6,525) | 201,274 | 202,592 | |||||||
| 70 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| 61750FAE0 | 27,611 | - | 27,611 | 26,440 | (1,171) | 26,440 | 23,511 | |||||||
| 61750MAB1 | 441 | - | 441 | 361 | (79) | 361 | 340 | |||||||
| 86363HAB8 | 3,602 | - | 3,602 | 3,423 | (179) | 3,423 | 2,988 | |||||||
| 05535DAN4 | 130,051 | - | 130,051 | 124,494 | (5,557) | 124,494 | 106,591 | |||||||
| 45254TRX4 | 8,114 | - | 8,114 | 7,910 | (204) | 7,910 | 7,836 | |||||||
| 45660LYW3 | 68,799 | - | 68,799 | 65,584 | (3,214) | 65,584 | 64,808 | |||||||
| 466247XE8 | 79,759 | - | 79,759 | 78,321 | (1,438) | 78,321 | 67,957 | |||||||
| 589929X29 | 33,164 | - | 33,164 | 31,581 | (1,582) | 31,581 | 32,521 | |||||||
| 65535VRK6 | 33,605 | - | 33,605 | 27,970 | (5,635) | 27,970 | 29,456 | |||||||
| 41161PHU0 | 96,074 | - | 96,074 | 81,352 | (14,722) | 81,352 | 90,998 | |||||||
| 41161PWB5 | 93,018 | - | 93,018 | 92,331 | (687) | 92,331 | 79,847 | |||||||
| 45660N5H4 | 161,805 | - | 161,805 | 136,681 | (25,124) | 136,681 | 136,885 | |||||||
| 36298XAA0 | 977,080 | - | 977,080 | 942,363 | (34,718) | 942,363 | 887,951 | |||||||
| 36298XAB8 | 856,251 | - | 856,251 | 745,341 | (110,910) | 745,341 | 764,429 | |||||||
| Totals | $ | 3,726,463 | $ | - | $ | 3,726,463 | $ | 3,283,242 | $ | (443,221) | $ | 3,283,242 | $ | 3,150,825 |
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2022:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 01853GAB6 | $ | 2,493 | $ | - | $ | 2,493 | $ | 2,493 | $ | - | $ | 2,493 | $ | 7,197 |
| 02660CAH3 | 941 | - | 941 | 935 | (5) | 935 | 16 | |||||||
| 040104RV5 | 173,039 | - | 173,039 | 154,714 | (18,324) | 154,714 | 147,435 | |||||||
| 040104TG6 | 18,936 | - | 18,936 | 17,887 | (1,049) | 17,887 | 14,314 | |||||||
| 1248MGAJ3 | 5,295 | - | 5,295 | 5,118 | (178) | 5,118 | 4,203 | |||||||
| 14454AAB5 | 65,791 | - | 65,791 | 65,736 | (55) | 65,736 | 81,802 | |||||||
| 17311YAC7 | 88,194 | - | 88,194 | 77,892 | (10,303) | 77,892 | 78,729 | |||||||
| 35729RAE6 | 132,460 | - | 132,460 | 126,001 | (6,459) | 126,001 | 103,302 | |||||||
| 40431KAE0 | 214,071 | - | 214,071 | 205,722 | (8,349) | 205,722 | 202,667 | |||||||
| 617463AA2 | 526 | - | 526 | 441 | (85) | 441 | 348 | |||||||
| 61750FAE0 | 30,471 | - | 30,471 | 27,496 | (2,975) | 27,496 | 23,889 | |||||||
| 86363HAB8 | 3,939 | - | 3,939 | 3,660 | (279) | 3,660 | 3,100 | |||||||
| 93934XAB9 | 26,691 | - | 26,691 | 20,650 | (6,040) | 20,650 | 23,286 | |||||||
| 05535DAN4 | 135,069 | - | 135,069 | 134,646 | (423) | 134,646 | 114,615 | |||||||
| 12668ACY9 | 10,497 | - | 10,497 | 8,501 | (1,996) | 8,501 | 10,743 | |||||||
| 22540VG71 | 2,469 | - | 2,469 | 2,463 | (5) | 2,463 | 2,492 | |||||||
| 45254TSM7 | 78,878 | - | 78,878 | 76,949 | (1,929) | 76,949 | 66,138 | |||||||
| 45660LYW3 | 68,495 | - | 68,495 | 67,063 | (1,433) | 67,063 | 66,133 | |||||||
| 466247XE8 | 82,504 | - | 82,504 | 81,877 | (627) | 81,877 | 70,950 | |||||||
| 525221AJ6 | 58,759 | - | 58,759 | 58,677 | (83) | 58,677 | 59,121 | |||||||
| 65535VRK6 | 34,486 | - | 34,486 | 33,568 | (917) | 33,568 | 29,683 | |||||||
| 23332UCM4 | 4,180 | - | 4,180 | 3,866 | (313) | 3,866 | 4,042 | |||||||
| 41161PWB5 | 98,950 | - | 98,950 | 94,607 | (4,343) | 94,607 | 81,430 | |||||||
| Totals | $ | 1,337,132 | $ | - | $ | 1,337,132 | $ | 1,270,962 | $ | (66,170) | $ | 1,270,962 | $ | 1,195,634 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2022:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 01853GAB6 | $ | 7,454 | $ | - | $ | 7,454 | $ | 2,288 | $ | (5,166) | $ | 2,288 | $ | 7,787 |
| 040104RV5 | 181,867 | - | 181,867 | 171,865 | (10,002) | 171,865 | 160,035 | |||||||
| 040104TG6 | 19,420 | - | 19,420 | 18,728 | (692) | 18,728 | 15,333 | |||||||
| 1248MGAJ3 | 5,727 | - | 5,727 | 5,328 | (399) | 5,328 | 4,501 | |||||||
| 14454AAB5 | 89,674 | - | 89,674 | 65,737 | (23,937) | 65,737 | 86,252 | |||||||
| 35729RAE6 | 140,965 | - | 140,965 | 132,843 | (8,122) | 132,843 | 111,262 | |||||||
| 86363HAB8 | 4,436 | - | 4,436 | 3,995 | (441) | 3,995 | 3,437 | |||||||
| 05535DAN4 | 184,726 | - | 184,726 | 139,420 | (45,306) | 139,420 | 124,278 | |||||||
| 45254TRX4 | 9,164 | - | 9,164 | 8,519 | (644) | 8,519 | 8,480 | |||||||
| 71 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| 45660LYW3 | 71,484 | - | 71,484 | 68,316 | (3,168) | 68,316 | 69,150 | |||||||
| 525221AJ6 | 77,112 | - | 77,112 | 61,754 | (15,358) | 61,754 | 64,933 | |||||||
| 589929X29 | 45,702 | - | 45,702 | 44,026 | (1,676) | 44,026 | 44,178 | |||||||
| 761118FM5 | 213,882 | - | 213,882 | 209,051 | (4,832) | 209,051 | 200,979 | |||||||
| 589929N38 | 18,178 | - | 18,178 | 17,727 | (451) | 17,727 | 17,185 | |||||||
| Totals | $ | 1,069,792 | $ | - | $ | 1,069,792 | $ | 949,598 | $ | (120,194) | $ | 949,598 | $ | 917,792 |
The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2022:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 07388VAH1 | $ | 226,420 | $ | - | $ | 226,420 | $ | 23,420 | $ | (203,000) | $ | 23,420 | $ | 23,420 |
| 040104RV5 | 191,840 | - | 191,840 | 182,570 | (9,270) | 182,570 | 177,676 | |||||||
| 17311YAC7 | 101,646 | - | 101,646 | 88,695 | (12,951) | 88,695 | 93,082 | |||||||
| 35729RAE6 | 144,336 | - | 144,336 | 142,269 | (2,067) | 142,269 | 125,320 | |||||||
| 40431KAE0 | 245,992 | - | 245,992 | 219,259 | (26,733) | 219,259 | 244,844 | |||||||
| 45071KDD3 | 66,595 | - | 66,595 | 59,578 | (7,017) | 59,578 | 61,194 | |||||||
| 61750FAE0 | 32,855 | - | 32,855 | 30,573 | (2,282) | 30,573 | 28,080 | |||||||
| 45660LAU3 | 12,143 | - | 12,143 | 11,587 | (556) | 11,587 | 11,819 | |||||||
| 761118FM5 | 234,972 | - | 234,972 | 228,638 | (6,334) | 228,638 | 223,059 | |||||||
| 41161PWB5 | 109,841 | - | 109,841 | 105,949 | (3,892) | 105,949 | 95,793 | |||||||
| Totals | $ | 1,366,642 | $ | - | $ | 1,366,642 | $ | 1,092,539 | $ | (274,102) | $ | 1,092,539 | $ | 1,084,285 |
The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2022:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 617463AA2 | $ | 593 | $ | - | $ | 593 | $ | 541 | $ | (52) | $ | 541 | $ | 466 |
| 61750FAE0 | 34,293 | - | 34,293 | 32,765 | (1,528) | 32,765 | 30,781 | |||||||
| 61750MAB1 | 494 | - | 494 | 456 | (38) | 456 | 455 | |||||||
| 41161PWB5 | 118,327 | - | 118,327 | 112,659 | (5,668) | 112,659 | 101,599 | |||||||
| Totals | $ | 153,707 | $ | - | $ | 153,707 | $ | 146,421 | $ | (7,286) | $ | 146,421 | $ | 133,301 |
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2021:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DAN4 | $ | 200,922 | $ | - | $ | 200,922 | $ | 200,142 | $ | (780) | $ | 200,142 | $ | 162,578 |
| 073879QF8 | 18,487 | - | 18,487 | 17,021 | (1,466) | 17,021 | 19,301 | |||||||
| 45660LYW3 | 79,334 | - | 79,334 | 77,956 | (1,378) | 77,956 | 76,966 | |||||||
| 41161PWB5 | 130,360 | - | 130,360 | 127,091 | (3,269) | 127,091 | 112,805 | |||||||
| Totals | $ | 429,103 | $ | - | $ | 429,103 | $ | 422,210 | $ | (6,893) | $ | 422,210 | $ | 371,650 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2021:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 040104TG6 | $ | 24,495 | $ | - | $ | 24,495 | $ | 18,486 | $ | (6,009) | $ | 18,486 | $ | 21,692 |
| 05535DCF9 | 345,984 | - | 345,984 | 310,936 | (35,048) | 310,936 | 374,083 | |||||||
| 40431KAE0 | 260,175 | - | 260,175 | 258,699 | (1,476) | 258,699 | 302,426 | |||||||
| 61750FAE0 | 35,830 | - | 35,830 | 34,510 | (1,320) | 34,510 | 31,864 | |||||||
| 05535DAN4 | 221,083 | - | 221,083 | 165,572 | (55,511) | 165,572 | 181,999 | |||||||
| 45660LYW3 | 83,910 | - | 83,910 | 82,457 | (1,453) | 82,457 | 81,083 | |||||||
| 79548KXQ6 | 20,469 | - | 20,469 | 15,048 | (5,421) | 15,048 | 15,063 | |||||||
| 41161PWB5 | 138,240 | - | 138,240 | 134,082 | (4,158) | 134,082 | 120,457 | |||||||
| Totals | $ | 1,130,186 | $ | - | $ | 1,130,186 | $ | 1,019,790 | $ | (110,396) | $ | 1,019,790 | $ | 1,128,667 |
| 72 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2021:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DCF9 | $ | 366,060 | $ | - | $ | 366,060 | $ | 359,326 | $ | (6,734) | $ | 359,326 | $ | 379,719 |
| 61750FAE0 | 37,595 | - | 37,595 | 36,005 | (1,590) | 36,005 | 32,295 | |||||||
| 22540V3F7 | 33,589 | - | 33,589 | 2,981 | (30,608) | 2,981 | 940 | |||||||
| 41161PWB5 | 143,442 | - | 143,442 | 143,272 | (170) | 143,272 | 126,338 | |||||||
| Totals | $ | 580,686 | $ | - | $ | 580,686 | $ | 541,584 | $ | (39,102) | $ | 541,584 | $ | 539,292 |
The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2020:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 01853GAB6 | $ | 14,568 | $ | - | $ | 14,568 | $ | 7,033 | $ | (7,536) | $ | 7,033 | $ | 12,059 |
| 05535DCF9 | 377,210 | - | 377,210 | 370,871 | (6,338) | 370,871 | 402,819 | |||||||
| 61750FAE0 | 38,370 | - | 38,370 | 37,735 | (636) | 37,735 | 34,241 | |||||||
| 61750MAB1 | 519 | - | 519 | 500 | (19) | 500 | 505 | |||||||
| 124860CB1 | 136,315 | - | 136,315 | 94,190 | (42,125) | 94,190 | 113,287 | |||||||
| 2254W0NK7 | 14,495 | - | 14,495 | 4,314 | (10,181) | 4,314 | 17,202 | |||||||
| 45660LYW3 | 91,445 | - | 91,445 | 90,564 | (881) | 90,564 | 89,217 | |||||||
| 65535VRK6 | 39,925 | - | 39,925 | 35,226 | (4,699) | 35,226 | 38,262 | |||||||
| 125435AA5 | 38,147 | - | 38,147 | 37,820 | (327) | 37,820 | 39,118 | |||||||
| 36298XAA0 | 1,280,168 | - | 1,280,168 | 1,134,532 | (145,636) | 1,134,532 | 1,203,139 | |||||||
| 86359DME4 | 171,546 | - | 171,546 | 168,762 | (2,784) | 168,762 | 177,768 | |||||||
| Totals | $ | 2,202,709 | $ | - | $ | 2,202,709 | $ | 1,981,547 | $ | (221,162) | $ | 1,981,547 | $ | 2,127,616 |
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2020:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DCF9 | $ | 395,158 | $ | - | $ | 395,158 | $ | 379,924 | $ | (15,234) | $ | 379,924 | $ | 366,150 |
| 61750MAB1 | 537 | - | 537 | 519 | (18) | 519 | 380 | |||||||
| 9393365V1 | 7,420 | - | 7,420 | 7,328 | (92) | 7,328 | 6,783 | |||||||
| 12669GWN7 | 210,883 | - | 210,883 | 198,389 | (12,494) | 198,389 | 194,272 | |||||||
| 36298XAA0 | 1,347,196 | - | 1,347,196 | 1,307,547 | (39,649) | 1,307,547 | 1,239,480 | |||||||
| 36298XAB8 | 1,257,414 | - | 1,257,414 | 1,017,564 | (239,850) | 1,017,564 | 1,064,536 | |||||||
| 74951PBT4 | 7,333 | - | 7,333 | 3,381 | (3,952) | 3,381 | 10,145 | |||||||
| Totals | $ | 3,225,941 | $ | - | $ | 3,225,941 | $ | 2,914,652 | $ | (311,289) | $ | 2,914,652 | $ | 2,881,746 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2020:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 9393365V1 | $ | 7,834 | $ | - | $ | 7,834 | $ | 7,719 | $ | (116) | $ | 7,719 | $ | 6,622 |
| 57643QAE5 | 534,784 | - | 534,784 | 441,679 | (93,105) | 441,679 | 574,564 | |||||||
| 74951PBT4 | 14,931 | - | 14,931 | 9,486 | (5,445) | 9,486 | 10,438 | |||||||
| 86359DMC8 | 1,421,078 | - | 1,421,078 | 1,306,900 | (114,178) | 1,306,900 | 1,202,568 | |||||||
| Totals | $ | 1,978,627 | $ | - | $ | 1,978,627 | $ | 1,765,784 | $ | (212,843) | $ | 1,765,784 | $ | 1,794,192 |
The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2020:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DCF9 | $ | 432,085 | $ | - | $ | 432,085 | $ | 410,505 | $ | (21,580) | $ | 410,505 | $ | 362,606 |
| 45071KDD3 | 77,176 | - | 77,176 | 69,653 | (7,524) | 69,653 | 67,033 | |||||||
| 65535VRK6 | 41,952 | - | 41,952 | 40,956 | (995) | 40,956 | 37,844 | |||||||
| 79548KXQ6 | 29,027 | - | 29,027 | 28,392 | (635) | 28,392 | 21,372 | |||||||
| 73 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| 12669GWN7 | 220,746 | - | 220,746 | 216,237 | (4,509) | 216,237 | 214,278 | |||||||
| 57645LAA2 | 1,924,581 | - | 1,924,581 | 1,476,730 | (447,851) | 1,476,730 | 1,981,360 | |||||||
| Totals | $ | 2,725,567 | $ | - | $ | 2,725,567 | $ | 2,242,474 | $ | (483,093) | $ | 2,242,474 | $ | 2,684,492 |
The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2019:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DAN4 | $ | 307,738 | $ | - | $ | 307,738 | $ | 295,672 | $ | (12,066) | $ | 295,672 | $ | 254,718 |
| 65535VRK6 | 48,442 | - | 48,442 | 41,689 | (6,753) | 41,689 | 45,360 | |||||||
| 79548KXQ6 | 32,160 | - | 32,160 | 29,837 | (2,323) | 29,837 | 17,626 | |||||||
| 12669FXR9 | 7,263 | - | 7,263 | 7,035 | (228) | 7,035 | 6,226 | |||||||
| Totals | $ | 395,603 | $ | - | $ | 395,603 | $ | 374,233 | $ | (21,370) | $ | 374,233 | $ | 323,929 |
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2019:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 761118FM5 | $ | 340,329 | $ | - | $ | 340,329 | $ | 333,834 | $ | (6,494) | $ | 333,834 | $ | 12,112 |
| 79548KXQ6 | 44,492 | - | 44,492 | 43,020 | (1,472) | 43,020 | 9,462 | |||||||
| 12669GWN7 | 257,591 | - | 257,591 | 237,604 | (19,987) | 237,604 | 232,552 | |||||||
| 36298XAA0 | 1,757,853 | - | 1,757,853 | 1,547,103 | (210,750) | 1,547,103 | 1,539,100 | |||||||
| US74951PBV94 | 3,553 | - | 3,553 | 1,893 | (1,660) | 1,893 | 3,130 | |||||||
| Totals | $ | 2,403,817 | $ | - | $ | 2,403,817 | $ | 2,163,454 | $ | (240,364) | $ | 2,163,454 | $ | 1,796,355 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2019:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 61750MAB1 | $ | 549 | $ | - | $ | 549 | $ | 544 | $ | (5) | $ | 544 | $ | 483 |
| 761118FM5 | 399,645 | - | 399,645 | 392,163 | (7,482) | 392,163 | 415,195 | |||||||
| 57643QAE5 | 738,589 | - | 738,589 | 572,935 | (165,654) | 572,935 | 772,080 | |||||||
| Totals | $ | 1,138,783 | $ | - | $ | 1,138,783 | $ | 965,642 | $ | (173,141) | $ | 965,642 | $ | 1,187,758 |
The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2019:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 61750MAB1 | $ | 586 | $ | - | $ | 586 | $ | 548 | $ | (38) | $ | 548 | $ | 554 |
| 65106FAG7 | 12,643 | - | 12,643 | 11,714 | (929) | 11,714 | 343 | |||||||
| 22541QQR6 | 312 | - | 312 | - | (312) | - | - | |||||||
| 761118FM5 | 390,110 | - | 390,110 | 385,210 | (4,900) | 385,210 | 388,296 | |||||||
| 57643QAE5 | 755,970 | - | 755,970 | 754,768 | (1,202) | 754,768 | 790,386 | |||||||
| US74951PBV94 | 6,287 | - | 6,287 | 3,525 | (2,763) | 3,525 | 6,872 | |||||||
| Totals | $ | 1,165,908 | $ | - | $ | 1,165,908 | $ | 1,155,765 | $ | (10,144) | $ | 1,155,765 | $ | 1,186,451 |
The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2018:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 65106FAG7 | $ | 11,179 | $ | - | $ | 11,179 | $ | 959 | $ | (10,220) | $ | 959 | $ | 1,142 |
| 22541QQR6 | 5,700 | - | 5,700 | (1,944) | (7,644) | (1,944) | - | |||||||
| 57643QAE5 | 887,867 | - | 887,867 | 771,332 | (116,535) | 771,332 | 816,823 | |||||||
| Totals | $ | 904,746 | $ | - | $ | 904,746 | $ | 770,347 | $ | (134,399) | $ | 770,347 | $ | 817,965 |
| 74 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2018:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 05535DCF9 | $ | 495,404 | $ | - | $ | 495,404 | $ | 450,462 | $ | (44,942) | $ | 450,462 | $ | 449,510 |
| 07386HCP4 | 564 | - | 564 | (1,633) | (2,197) | (1,633) | 83 | |||||||
| 76110H4M8 | 504 | - | 504 | (1,094) | (1,598) | (1,094) | 189 | |||||||
| Totals | $ | 496,473 | $ | - | $ | 496,473 | $ | 447,735 | $ | (48,737) | $ | 447,735 | $ | 449,782 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2018:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 76110H4M8 | $ | 2,014 | $ | - | $ | 2,014 | $ | 579 | $ | (1,435) | $ | 579 | $ | 504 |
| 863579DV7 | 37,534 | - | 37,534 | 786 | (36,748) | 786 | 3,932 | |||||||
| Totals | $ | 39,548 | $ | - | $ | 39,548 | $ | 1,365 | $ | (38,183) | $ | 1,365 | $ | 4,435 |
| The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2018: | ||||||||||||||
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 07386HEN7 | $ | 2,548 | $ | - | $ | 2,548 | $ | 136 | $ | (2,412) | $ | 136 | $ | 94 |
| 79548KXQ6 | 81,567 | - | 81,567 | 56,468 | (25,099) | 56,468 | 56,792 | |||||||
| Totals | $ | 84,116 | $ | - | $ | 84,116 | $ | 56,604 | $ | (27,511) | $ | 56,604 | $ | 56,886 |
| The following is the impairment listing for loan-backed and structured securities for the three months ended December 31, 2017: | ||||||||||||||
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 07386HCP4 | $ | 2,087 | $ | - | $ | 2,087 | $ | 362 | $ | (1,726) | $ | 362 | $ | 697 |
| 22541QQR6 | 4,224 | - | 4,224 | 2,480 | (1,744) | 2,480 | 3,194 | |||||||
| 2254W0NK7 | 15,047 | - | 15,047 | 14,538 | (509) | 14,538 | 21,513 | |||||||
| Totals | $ | 21,358 | $ | - | $ | 21,358 | $ | 17,379 | $ | (3,979) | $ | 17,379 | $ | 25,404 |
The following is the impairment listing for loan-backed and structured securities for the three months ended September 30, 2017:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 88157QAL2 | $ | 31,370 | $ | - | $ | 31,370 | $ | 30,181 | $ | (1,188) | $ | 30,181 | $ | 97,082 |
The following is the impairment listing for loan-backed and structured securities for the three months ended June 30, 2017:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 76110H4M8 | $ | 1,298 | $ | - | $ | 1,298 | $ | 684 | $ | (614) | $ | 684 | $ | 1,198 |
| 86358RLG0 | 245 | - | 245 | 191 | (54) | 191 | 2,120 | |||||||
| 88157QAL2 | 37,298 | - | 37,298 | 30,852 | (6,447) | 30,852 | 88,942 | |||||||
| 77277LAF4 | 2,501,621 | - | 2,501,621 | 2,463,055 | (38,566) | 2,463,055 | 3,813,186 | |||||||
| 77277LAH0 | 126,121 | - | 126,121 | 124,240 | (1,881) | 124,240 | 304,271 | |||||||
| 77277LAJ6 | 1,785,908 | - | 1,785,908 | 1,759,310 | (26,599) | 1,759,310 | 2,399,517 | |||||||
| Totals | $ | 4,452,491 | $ | - | $ | 4,452,491 | $ | 4,378,331 | $ | (74,160) | $ | 4,378,331 | $ | 6,609,233 |
The following is the impairment listing for loan-backed and structured securities for the three months ended March 31, 2017:
| CUSIP | Amortized Cost before Cumulative Adjustment |
Cumulative Adjustment | Amortized Cost before OTTI |
Projected Cash Flow | Recognized OTTI |
Amortized Cost after OTTI |
Fair Value | |||||||
| 22541QJR4 | $ | 3,126 | $ | - | $ | 3,126 | $ | 15 | $ | (3,111) | $ | 15 | $ | 1,926 |
| 45660LYW3 | 130,210 | - | 130,210 | 121,920 | (8,290) | 121,920 | 118,232 | |||||||
| 86358RA23 | 224,856 | - | 224,856 | 212,421 | (12,435) | 212,421 | 218,430 | |||||||
| 75 |
C.M. LIFE INSURANCE COMPANY
NOTES TO STATUTORY FINANCIAL STATEMENTS, continued
| 88157QAL2 | 39,747 | - | 39,747 | 36,416 | (3,331) | 36,416 | 89,960 | |||||||
| 77277LAF4 | 2,504,113 | - | 2,504,113 | 2,501,621 | (2,492) | 2,501,621 | 3,522,212 | |||||||
| 77277LAH0 | 126,242 | - | 126,242 | 126,121 | (122) | 126,121 | 295,836 | |||||||
| 77277LAJ6 | 1,787,629 | - | 1,787,629 | 1,785,908 | (1,721) | 1,785,908 | 2,216,416 | |||||||
| Totals | $ | 4,815,924 | $ | - | $ | 4,815,924 | $ | 4,784,422 | $ | (31,502) | $ | 4,784,422 | $ | 6,463,013 |
| 76 |
|
KPMG LLP Two Financial Center 60 South Street Boston, MA 02111 |
Report of Independent Registered Public Accounting Firm
The Board of Directors of C.M. Life Insurance Company and Policy Owners of C.M. Life Variable Life Separate Account I:
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of the divisions listed in Appendix A that comprise C.M. Life Variable Life Separate Account I (Separate Account), as of December 31, 2023, the related statements of operations and changes in net assets for each of the years in the two-year period then ended, and the related notes, including the financial highlights in Note 8, for each of the years or periods in the five-year period then ended (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of each division as of December 31, 2023, and the results of their operations and the changes in their net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years or periods in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Separate Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Separate Account in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Such procedures also included confirmation of securities owned as of December 31, 2023, by correspondence with the underlying mutual funds or their transfer agent. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
/s/ KPMG LLP
We have served as the Separate Account’s auditor
since 2004.
Boston, Massachusetts
March 7, 2024
F-1
KPMG LLP, a Delaware limited liability partnership and a member firm of
the KPMG global organization of independent member firms affiliated with
KPMG International Limited, a private English company limited by guarantee.
Appendix A
C.M. Life Variable Life Separate Account I was comprised of the following divisions as of December 31, 2023.
|
Divisions American Century VP Capital Appreciation Division American Century VP Disciplined Core Value Division American Century VP International Division American Century VP Value Division American Funds Insurance Series® Asset Allocation Division (Class 1)* American Funds Insurance Series® Asset Allocation Division (Class 2)* American Funds Insurance Series® Capital World Growth and Income Division* American Funds Insurance Series® Global Growth Division* American Funds Insurance Series® Growth-Income Division (Class 2)* American Funds Insurance Series® International Growth and Income Division* American Funds Insurance Series® New World Division* American Funds Insurance Series® The Bond Fund of America Division* American Funds Insurance Series® Washington Mutual Investors Division* BlackRock High Yield V.I. Division BlackRock Small Cap Index V.I. Division BNY Mellon MidCap Stock Division Delaware Ivy VIP Science and Technology Division Delaware VIP® Emerging Markets Division Delaware VIP® Small Cap Value Division DFA VA International Small Division DFA VA U.S. Targeted Value Division DFA VIT Inflation-Protected Securities Division DWS Small Cap Index Division Eaton Vance VT Floating-Rate Income Division Fidelity® VIP Bond Index Division Fidelity® VIP Contrafund® Division Fidelity® VIP Extended Market Index Division Fidelity® VIP Freedom 2020 Division Fidelity® VIP Freedom 2025 Division Fidelity® VIP Freedom 2030 Division Fidelity® VIP Freedom 2035 Division Fidelity® VIP Freedom 2040 Division Fidelity® VIP Freedom 2045 Division Fidelity® VIP Freedom 2050 Division Fidelity® VIP Freedom 2055 Division Fidelity® VIP Freedom 2060 Division Fidelity® VIP Freedom 2065 Division Fidelity® VIP Freedom Income Division Fidelity® VIP Growth Division Fidelity® VIP Index 500 Division (Initial Class) |
Fidelity® VIP Index 500 Division (Service Class) Fidelity® VIP International Index Division Fidelity® VIP Overseas Division Franklin Small Cap Value VIP Division Franklin Strategic Income VIP Division Goldman Sachs Core Fixed Income Division Goldman Sachs International Equity Insights Division Goldman Sachs Mid Cap Growth Division* Goldman Sachs Mid Cap Value Division Goldman Sachs Strategic Growth Division Invesco Oppenheimer V.I. International Growth Division Invesco V.I. Capital Appreciation Division Invesco V.I. Core Plus Bond Division* Invesco V.I. Discovery Mid Cap Growth Division Invesco V.I. Diversified Dividend Division Invesco V.I. Global Division Invesco V.I. Global Real Estate Division Invesco V.I. Global Strategic Income Division Invesco V.I. Health Care Division Invesco V.I. Main Street Division Invesco V.I. Small Cap Equity Division Invesco V.I. Technology Division Janus Henderson Balanced Division Janus Henderson Forty Division Janus Henderson Global Research Division MFS® Global Real Estate Division MFS® Growth Series Division MFS® International Intrinsic Value Division MFS® Investors Trust Division MFS® Mid Cap Value Division MFS® New Discovery Division MFS® Value Division MML Aggressive Allocation Division MML American Funds Growth Division MML Balanced Allocation Division MML Blend Division MML Blue Chip Growth Division MML Conservative Allocation Division MML Dynamic Bond Division MML Equity Division MML Equity Income Division MML Equity Index Division MML Focused Equity Division MML Foreign Division MML Global Division MML Growth Allocation Division MML Income & Growth Division MML Inflation-Protected and Income Division MML Large Cap Growth Division MML Managed Bond Division MML Managed Volatility Division |
LA2049
| F-2 |
|
MML Mid Cap Growth Division MML Mid Cap Value Division MML Moderate Allocation Division MML Short-Duration Bond Division MML Small Cap Equity Division MML Small Cap Growth Equity Division MML Strategic Emerging Markets Division MML Total Return Bond Division MML U.S. Government Money Market Division PIMCO Global Bond Opportunities Division PIMCO High Yield Division PIMCO Real Return Division PIMCO Total Return Division T. Rowe Price Blue Chip Growth Division |
T. Rowe Price Equity Income Division T. Rowe Price Limited-Term Bond Division T. Rowe Price Mid-Cap Growth Division Templeton Foreign VIP Division Templeton Global Bond VIP Division Vanguard VIF Balanced Division Vanguard VIF Capital Growth Division Vanguard VIF Diversified Value Division Vanguard VIF Equity Income Division Vanguard VIF Growth Division Vanguard VIF International Division Vanguard VIF Real Estate Index Division Vanguard VIF Short-Term Investment-Grade Division
|
* The following Divisions had name changes:
| Current Year | Prior Year |
| American Funds Insurance Series® Asset Allocation Division (Class 1) | American Funds® IS Asset Allocation Division |
| American Funds Insurance Series® Asset Allocation Division (Class 2) | American Funds® Asset Allocation Division |
| American Funds Insurance Series® Capital World Global Growth and Income Division | American Funds® IS Global Growth & Income Division |
| American Funds Insurance Series® Global Growth Division (Class 1) | American Funds® IS Global Growth-Income Division |
| American Funds Insurance Series® Global Growth Division (Class 2) | American Funds® IS Global Growth Division |
| F-3 |
| American Funds Insurance Series® International Growth and Income Division | American Funds® IS International Growth And Income Division |
| American Funds Insurance Series® New World Division | American Funds® IS New World Division |
| American Funds Insurance Series® The Bond Fund of America Division | American Funds® IS Bond Fund of America Division |
| American Funds Insurance Series® Washington Mutual Investors Division | American Funds® IS Blue Chip Income & Growth Division |
| Goldman Sachs Mid Cap Growth Division | Goldman Sachs Growth Opportunities Division. |
LA2049
| F-4 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2023
| American Century VP Capital Appreciation Division | American Century VP Disciplined Core Value Division | American Century VP International Division | American Century VP Value Division | American Funds Insurance Series® Asset Allocation Division | American Funds Insurance Series® Asset Allocation Division | American Funds Insurance Series® Capital World Growth and Income Division | American Funds Insurance Series® Global Growth Division | ||||||||||||||||||
| (Class 1) | (Class 2) | ||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 10,660 | 3,764,304 | 14,074 | 230,283 | 989 | 467,946 | 4,688 | 1,502 | |||||||||||||||||
| Identified cost | $ | 135,684 | $ | 33,243,979 | $ | 143,323 | $ | 2,493,893 | $ | 22,673 | $ | 10,657,247 | $ | 57,707 | $ | 46,168 | |||||||||
| Value | $ | 151,582 | $ | 28,872,214 | $ | 148,901 | $ | 2,807,146 | $ | 23,599 | $ | 11,010,764 | $ | 64,552 | $ | 50,952 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | - | - | - | |||||||||||||||||
| Total assets | 151,582 | 28,872,214 | 148,901 | 2,807,146 | 23,599 | 11,010,764 | 64,552 | 50,952 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | 1 | 9 | 1 | 17 | - | 7 | - | - | |||||||||||||||||
| Total liabilities | 1 | 9 | 1 | 17 | - | 7 | - | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 151,581 | $ | 28,872,205 | $ | 148,900 | $ | 2,807,129 | $ | 23,599 | $ | 11,010,757 | $ | 64,552 | $ | 50,952 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 171,999 | 7,599,490 | 172,476 | 526,324 | 23,211 | 2,455,694 | 62,883 | 53,729 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | 4.40 | - | 5.54 | - | 4.63 | - | - | |||||||||||||||||
| Variable Universal Life | - | 3.79 | - | 5.21 | - | 4.35 | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | - | 3.49 | - | 5.54 | - | 4.63 | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 0.88 | - | 0.86 | - | 1.02 | - | 1.03 | 0.95 | |||||||||||||||||
See Notes to Financial Statements.
| F-5 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| American Funds Insurance Series® Growth-Income Division | American Funds Insurance Series® International Growth and Income Division | American Funds Insurance Series® New World Division | American Funds Insurance Series® The Bond Fund of America Division | American Funds Insurance Series® Washington Mutual Investors Division | Black Rock High Yield V.I. Division | Black Rock Small Cap Index V.I. Division | BNY Mellon MidCap Stock Division | ||||||||||||||||||
| (Class 2) | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 204,526 | 3,366 | 685 | 2,849 | 831 | 13,901 | 21,891 | 4,487 | |||||||||||||||||
| Identified cost | $ | 9,860,772 | $ | 32,575 | $ | 15,561 | $ | 27,131 | $ | 10,783 | $ | 91,643 | $ | 233,183 | $ | 78,516 | |||||||||
| Value | $ | 11,923,840 | $ | 33,993 | $ | 17,458 | $ | 26,982 | $ | 11,997 | $ | 95,080 | $ | 247,150 | $ | 83,271 | |||||||||
| Dividends receivable | - | - | - | - | - | 404 | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | 13 | - | - | |||||||||||||||||
| Total assets | 11,923,840 | 33,993 | 17,458 | 26,982 | 11,997 | 95,497 | 247,150 | 83,271 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | 11 | - | - | - | - | - | 1 | - | |||||||||||||||||
| Total liabilities | 11 | - | - | - | - | - | 1 | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 11,923,829 | $ | 33,993 | $ | 17,458 | $ | 26,982 | $ | 11,997 | $ | 95,497 | $ | 247,149 | $ | 83,271 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 1,850,575 | 33,435 | 18,940 | 29,476 | 10,861 | 93,333 | 259,701 | 79,565 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | 6.69 | - | - | - | - | - | - | - | |||||||||||||||||
| Variable Universal Life | 6.29 | - | - | - | - | - | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | 6.69 | - | - | - | - | - | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | - | 1.02 | 0.92 | 0.92 | 1.10 | 1.02 | 0.95 | 1.05 | |||||||||||||||||
See Notes to Financial Statements.
| F-6 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Delaware Ivy VIP Science and Technology Division | Delaware VIP® Emerging Markets Division | Delaware VIP® Small Cap Value Division | DFA VA International Small Division | DFA U.S. Targeted Value Division | DFA VIT Inflation- Protected Division | DWS Small Cap Index Division | Eaton Vance VT Floating-Rate Income Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 1,467 | 5,096 | 870 | 4,864 | 3,576 | 1,838 | 335,176 | 459 | |||||||||||||||||
| Identified cost | $ | 31,418 | $ | 106,730 | $ | 32,147 | $ | 53,721 | $ | 79,091 | $ | 18,435 | $ | 4,914,694 | $ | 3,917 | |||||||||
| Value | $ | 33,702 | $ | 112,020 | $ | 33,180 | $ | 57,786 | $ | 80,818 | $ | 16,648 | $ | 4,568,447 | $ | 3,975 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | 1 | - | - | - | - | - | 1 | |||||||||||||||||
| Total assets | 33,702 | 112,021 | 33,180 | 57,786 | 80,818 | 16,648 | 4,568,447 | 3,976 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | - | - | - | - | - | 2 | - | |||||||||||||||||
| Total liabilities | - | - | - | - | - | - | 2 | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 33,702 | $ | 112,021 | $ | 33,180 | $ | 57,786 | $ | 80,818 | $ | 16,648 | $ | 4,568,445 | $ | 3,976 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 34,658 | 134,459 | 33,497 | 59,284 | 67,727 | 18,103 | 1,010,726 | 3,646 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | - | - | - | - | - | 4.85 | - | |||||||||||||||||
| Variable Universal Life | - | - | - | - | - | - | 4.37 | - | |||||||||||||||||
| Survivorship Variable Universal Life II | - | - | - | - | - | - | 4.69 | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 0.97 | 0.83 | 0.99 | 0.97 | 1.19 | 0.92 | - | 1.09 | |||||||||||||||||
See Notes to Financial Statements.
| F-7 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Fidelity® VIP Bond Index Division | Fidelity® VIP Contrafund® Division | Fidelity® VIP Extended Market Index Division | Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2025 Division | Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 3,882 | 1,635,649 | 22,635 | 30 | 16,106 | 12,001 | 5,625 | 22,473 | |||||||||||||||||
| Identified cost | $ | 37,137 | $ | 59,132,585 | $ | 264,791 | $ | 358 | $ | 228,877 | $ | 174,469 | $ | 133,981 | $ | 520,428 | |||||||||
| Value | $ | 37,387 | $ | 79,541,609 | $ | 291,992 | $ | 377 | $ | 243,367 | $ | 183,741 | $ | 145,692 | $ | 558,221 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | 6 | - | - | - | - | - | - | |||||||||||||||||
| Total assets | 37,387 | 79,541,615 | 291,992 | 377 | 243,367 | 183,741 | 145,692 | 558,221 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | - | 2 | - | - | - | 1 | - | |||||||||||||||||
| Total liabilities | - | - | 2 | - | - | - | 1 | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 37,387 | $ | 79,541,615 | $ | 291,990 | $ | 377 | $ | 243,367 | $ | 183,741 | $ | 145,691 | $ | 558,221 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 41,206 | 10,943,710 | 295,965 | 394 | 253,527 | 190,346 | 149,100 | 563,122 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | 8.98 | - | - | - | - | - | - | |||||||||||||||||
| Variable Universal Life | - | 7.32 | - | - | - | - | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | - | 6.51 | - | - | - | - | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 0.91 | 1.00 | 0.99 | 0.96 | 0.96 | 0.97 | 0.98 | 0.99 | |||||||||||||||||
See Notes to Financial Statements.
| F-8 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | Fidelity® VIP Freedom 2055 Division | Fidelity® VIP Freedom 2060 Division | Fidelity® VIP Freedom 2065 Division | Fidelity® VIP Freedom Income Division | Fidelity® VIP Growth Division | Fidelity® VIP Index 500 Division¹ | ||||||||||||||||||
| (Initial Class) | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 2,512 | 9,748 | 6,979 | 8,296 | 165 | 4,128 | 4,896 | - | |||||||||||||||||
| Identified cost | $ | 56,871 | $ | 205,837 | $ | 79,962 | $ | 96,601 | $ | 1,865 | $ | 44,575 | $ | 392,666 | $ | 7 | |||||||||
| Value | $ | 63,127 | $ | 221,174 | $ | 88,839 | $ | 104,363 | $ | 2,042 | $ | 45,239 | $ | 452,184 | $ | 9 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | - | - | - | |||||||||||||||||
| Total assets | 63,127 | 221,174 | 88,839 | 104,363 | 2,042 | 45,239 | 452,184 | 9 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | - | - | - | - | - | - | 9 | |||||||||||||||||
| Total liabilities | - | - | - | - | - | - | - | 9 | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 63,127 | $ | 221,174 | $ | 88,839 | $ | 104,363 | $ | 2,042 | $ | 45,239 | $ | 452,184 | $ | - | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 63,400 | 222,087 | 89,198 | 104,814 | 2,052 | 47,539 | 435,374 | - | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | 10.16 | |||||||||
| Survivorship Variable Universal Life | - | - | - | - | - | - | - | - | |||||||||||||||||
| Variable Universal Life | - | - | - | - | - | - | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | - | - | - | - | - | - | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 0.95 | 1.04 | - | |||||||||||||||||
| 1 | Fidelity VIP Index 500 Fund shares held are fractional and round to zero. |
See Notes to Financial Statements.
| F-9 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Fidelity® VIP Index 500 Division | Fidelity® VIP International Index Division | Fidelity® VIP Overseas Division | Franklin Small Cap Value VIP Division | Franklin Strategic Income VIP Division | Goldman Sachs Core Fixed Income Division | Goldman Sachs International Equity Insights Division | Goldman Sachs Mid Cap Growth Division | ||||||||||||||||||
| (Service Class) | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 2,958 | 22,641 | 4,100 | 328,204 | - | 42 | 5,345 | 523 | |||||||||||||||||
| Identified cost | $ | 1,196,226 | $ | 224,552 | $ | 100,893 | $ | 4,440,406 | $ | - | $ | 403 | $ | 44,434 | $ | 4,779 | |||||||||
| Value | $ | 1,359,985 | $ | 239,091 | $ | 105,863 | $ | 4,355,273 | $ | - | $ | 409 | $ | 47,304 | $ | 5,342 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | - | - | - | |||||||||||||||||
| Total assets | 1,359,985 | 239,091 | 105,863 | 4,355,273 | - | 409 | 47,304 | 5,342 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | 1 | 1 | 17 | - | - | - | - | |||||||||||||||||
| Total liabilities | - | 1 | 1 | 17 | - | - | - | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 1,359,985 | $ | 239,090 | $ | 105,862 | $ | 4,355,256 | $ | - | $ | 409 | $ | 47,304 | $ | 5,342 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 1,292,693 | 241,064 | 112,483 | 812,443 | - | 452 | 44,891 | 5,979 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | - | - | 6.62 | - | - | - | - | |||||||||||||||||
| Variable Universal Life | - | - | - | 6.22 | - | - | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | - | - | - | 6.62 | - | - | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 1.05 | 0.99 | 0.94 | 1.05 | 0.97 | 0.90 | 1.05 | 0.89 | |||||||||||||||||
See Notes to Financial Statements.
| F-10 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Goldman Sachs Mid Cap Value Division | Goldman Sachs Strategic Growth Division | Invesco Oppenheimer V.I. International Growth Division | Invesco V.I. Capital Appreciation Division | Invesco V.I. Core Plus Bond Division | Invesco V.I. Discovery Mid Cap Growth Division | Invesco V.I. Diversified Dividend Division | Invesco V.I. Global Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 22,785 | 575,790 | 2,008,127 | 1,245,071 | 486,163 | 862,446 | 30,398 | 1,569,223 | |||||||||||||||||
| Identified cost | $ | 365,334 | $ | 7,029,045 | $ | 4,375,208 | $ | 60,418,090 | $ | 3,206,176 | $ | 62,446,566 | $ | 761,945 | $ | 57,164,341 | |||||||||
| Value | $ | 364,780 | $ | 7,220,403 | $ | 4,056,417 | $ | 58,605,494 | $ | 2,790,577 | $ | 54,170,253 | $ | 736,855 | $ | 57,370,808 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | 3 | - | 22 | - | 29 | - | - | |||||||||||||||||
| Total assets | 364,780 | 7,220,406 | 4,056,417 | 58,605,516 | 2,790,577 | 54,170,282 | 736,855 | 57,370,808 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | - | 13 | - | 9 | - | 17 | 15 | |||||||||||||||||
| Total liabilities | - | - | 13 | - | 9 | - | 17 | 15 | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 364,780 | $ | 7,220,406 | $ | 4,056,404 | $ | 58,605,516 | $ | 2,790,568 | $ | 54,170,282 | $ | 736,838 | $ | 57,370,793 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 351,797 | 1,589,695 | 1,310,700 | 12,025,572 | 1,766,901 | 14,070,708 | 347,505 | 8,305,010 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | 4.84 | $ | - | $ | 1.69 | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | 5.51 | 3.22 | 6.14 | 1.48 | 4.72 | 2.25 | 8.19 | |||||||||||||||||
| Variable Universal Life | - | 4.38 | 3.01 | 5.18 | 1.54 | 4.48 | 2.11 | 7.43 | |||||||||||||||||
| Survivorship Variable Universal Life II | - | 4.70 | 3.22 | 3.73 | 1.65 | 2.38 | 2.25 | 4.68 | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 1.04 | - | 0.90 | - | - | 0.80 | 1.11 | 0.92 | |||||||||||||||||
See Notes to Financial Statements.
| F-11 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Invesco V.I. Global Real Estate Division | Invesco V.I. Global Strategic Income Division | Invesco V.I. Health Care Division | Invesco V.I. Main Street Division | Invesco V.I. Small Cap Equity Division | Invesco V.I. Technology Division | Janus Henderson Balanced Division | Janus Henderson Forty Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 758 | 1,703,949 | 41,197 | 909,038 | 7,183 | 94,929 | 89,466 | 471,561 | |||||||||||||||||
| Identified cost | $ | 10,387 | $ | 8,168,378 | $ | 1,168,986 | $ | 19,963,468 | $ | 124,353 | $ | 2,083,574 | $ | 3,322,519 | $ | 18,517,315 | |||||||||
| Value | $ | 10,603 | $ | 7,309,941 | $ | 1,067,414 | $ | 16,562,670 | $ | 123,550 | $ | 1,756,185 | $ | 4,298,857 | $ | 22,328,420 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | - | - | - | |||||||||||||||||
| Total assets | 10,603 | 7,309,941 | 1,067,414 | 16,562,670 | 123,550 | 1,756,185 | 4,298,857 | 22,328,420 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | 4 | 16 | 18 | - | 24 | 16 | 1 | |||||||||||||||||
| Total liabilities | - | 4 | 16 | 18 | - | 24 | 16 | 1 | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 10,603 | $ | 7,309,937 | $ | 1,067,398 | $ | 16,562,652 | $ | 123,550 | $ | 1,756,161 | $ | 4,298,841 | $ | 22,328,419 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 12,521 | 2,859,546 | 218,077 | 4,315,393 | 128,897 | 557,676 | 916,564 | 4,080,387 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | 5.46 | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | 2.68 | 5.12 | 4.72 | - | 3.31 | 4.91 | - | |||||||||||||||||
| Variable Universal Life | - | 2.51 | 4.81 | 3.75 | - | 3.09 | 4.62 | 5.33 | |||||||||||||||||
| Survivorship Variable Universal Life II | - | 2.63 | 5.12 | 4.03 | - | 3.31 | 4.91 | 5.72 | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 0.85 | 0.97 | - | 1.01 | 0.96 | - | - | - | |||||||||||||||||
See Notes to Financial Statements.
| F-12 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Janus Henderson Global Research Division | MFS® Global Real Estate Division | MFS® Growth Series Division | MFS® International Intrinsic Value Division | MFS® Investors Trust Division | MFS® Mid Cap Value Division | MFS® New Discovery Division | MFS® Value Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 221,516 | 920 | 263 | 2,260 | 5,556 | 16,939 | 101,969 | 28,766 | |||||||||||||||||
| Identified cost | $ | 9,883,173 | $ | 12,218 | $ | 15,395 | $ | 65,664 | $ | 186,427 | $ | 159,662 | $ | 1,887,916 | $ | 620,189 | |||||||||
| Value | $ | 13,534,599 | $ | 12,038 | $ | 15,873 | $ | 66,456 | $ | 199,963 | $ | 166,515 | $ | 1,319,483 | $ | 611,858 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | 22 | - | - | - | - | - | - | 1 | |||||||||||||||||
| Total assets | 13,534,621 | 12,038 | 15,873 | 66,456 | 199,963 | 166,515 | 1,319,483 | 611,859 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | - | - | - | 24 | - | 6 | - | |||||||||||||||||
| Total liabilities | - | - | - | - | 24 | - | 6 | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 13,534,621 | $ | 12,038 | $ | 15,873 | $ | 66,456 | $ | 199,939 | $ | 166,515 | $ | 1,319,477 | $ | 611,859 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 6,508,519 | 14,221 | 16,984 | 72,712 | 31,859 | 156,833 | 199,712 | 588,832 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | - | - | - | 6.45 | - | 6.93 | - | |||||||||||||||||
| Variable Universal Life | 2.03 | - | - | - | 6.07 | - | 6.51 | - | |||||||||||||||||
| Survivorship Variable Universal Life II | 2.18 | - | - | - | 6.45 | - | 6.93 | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | - | 0.85 | 0.93 | 0.91 | - | 1.06 | - | 1.04 | |||||||||||||||||
See Notes to Financial Statements.
| F-13 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| MML Aggressive Allocation Division | MML American Funds Growth Division | MML Balanced Allocation Division | MML Blend Division | MML Blue Chip Growth Division | MML Conservative Allocation Division | MML Dynamic Bond Division | MML Equity Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 10,371 | 22,084 | 1,012 | 1,002,496 | 401,364 | 2,742 | 938 | 1,607,175 | |||||||||||||||||
| Identified cost | $ | 89,574 | $ | 311,762 | $ | 8,489 | $ | 21,075,613 | $ | 6,710,349 | $ | 20,848 | $ | 8,241 | $ | 41,314,708 | |||||||||
| Value | $ | 86,393 | $ | 308,297 | $ | 8,319 | $ | 19,502,264 | $ | 6,421,827 | $ | 21,961 | $ | 8,059 | $ | 42,224,714 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | 1 | 1 | - | - | - | - | - | |||||||||||||||||
| Total assets | 86,393 | 308,298 | 8,320 | 19,502,264 | 6,421,827 | 21,961 | 8,059 | 42,224,714 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | - | - | 2 | 6 | - | - | 1 | |||||||||||||||||
| Total liabilities | - | - | - | 2 | 6 | - | - | 1 | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 86,393 | $ | 308,298 | $ | 8,320 | $ | 19,502,262 | $ | 6,421,821 | $ | 21,961 | $ | 8,059 | $ | 42,224,713 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 85,116 | 312,749 | 8,579 | 5,197,567 | 2,044,164 | 22,875 | 8,676 | 12,417,944 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | - | - | 4.04 | 4.39 | - | - | 3.70 | |||||||||||||||||
| Variable Universal Life | - | - | - | 3.63 | 3.04 | - | - | 3.35 | |||||||||||||||||
| Survivorship Variable Universal Life II | - | - | - | 3.87 | 3.27 | - | - | 3.69 | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 1.02 | 0.99 | 0.97 | 0.99 | 0.91 | 0.96 | 0.93 | 1.07 | |||||||||||||||||
See Notes to Financial Statements.
| F-14 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| MML Equity Income Division | MML Equity Index Division | MML Focused Equity Division | MML Foreign Division | MML Global Division | MML Growth Allocation Division | MML Income & Growth Division | MML Inflation- Protected and Income Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 8,802 | 1,972,057 | 8,458 | 9,389 | 4,080 | 32,574 | 6,711 | 174,889 | |||||||||||||||||
| Identified cost | $ | 90,671 | $ | 53,372,633 | $ | 60,628 | $ | 81,906 | $ | 15,914 | $ | 251,732 | $ | 71,176 | $ | 1,735,051 | |||||||||
| Value | $ | 87,052 | $ | 59,220,868 | $ | 60,558 | $ | 89,473 | $ | 16,319 | $ | 234,861 | $ | 67,514 | $ | 1,525,030 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | 1 | - | - | - | - | |||||||||||||||||
| Total assets | 87,052 | 59,220,868 | 60,558 | 89,474 | 16,319 | 234,861 | 67,514 | 1,525,030 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | 10 | - | - | - | - | - | 10 | |||||||||||||||||
| Total liabilities | - | 10 | - | - | - | - | - | 10 | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 87,052 | $ | 59,220,858 | $ | 60,558 | $ | 89,474 | $ | 16,319 | $ | 234,861 | $ | 67,514 | $ | 1,525,020 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 80,077 | 11,999,022 | 56,573 | 87,192 | 16,979 | 235,054 | 60,476 | 824,224 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | 5.88 | - | - | - | - | - | 1.95 | |||||||||||||||||
| Variable Universal Life | - | 4.97 | - | - | - | - | - | 1.83 | |||||||||||||||||
| Survivorship Variable Universal Life II | - | 4.51 | - | - | - | - | - | 1.95 | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 1.09 | - | 1.07 | 1.03 | 0.96 | 1.00 | 1.12 | 0.92 | |||||||||||||||||
See Notes to Financial Statements.
| F-15 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| MML Large Cap Growth Division | MML Managed Bond Division | MML Managed Volatility Division | MML Mid Cap Growth Division | MML Mid Cap Value Division | MML Moderate Allocation Division | MML Short- Duration Bond Division | MML Small Cap Equity Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 6,183 | 775,210 | 145,849 | 16,455 | 10,887 | 6,377 | 2,321 | 1,541,874 | |||||||||||||||||
| Identified cost | $ | 68,226 | $ | 9,525,987 | $ | 1,814,058 | $ | 170,253 | $ | 98,097 | $ | 57,465 | $ | 20,528 | $ | 14,724,502 | |||||||||
| Value | $ | 85,950 | $ | 8,414,741 | $ | 1,783,251 | $ | 177,384 | $ | 86,007 | $ | 54,076 | $ | 20,678 | $ | 16,842,711 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | 1 | - | - | - | - | |||||||||||||||||
| Total assets | 85,950 | 8,414,741 | 1,783,251 | 177,385 | 86,007 | 54,076 | 20,678 | 16,842,711 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | 1 | 3 | 9 | - | - | - | - | 5 | |||||||||||||||||
| Total liabilities | 1 | 3 | 9 | - | - | - | - | 5 | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 85,949 | $ | 8,414,738 | $ | 1,783,242 | $ | 177,385 | $ | 86,007 | $ | 54,076 | $ | 20,678 | $ | 16,842,706 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 77,676 | 3,600,784 | 736,150 | 188,351 | 79,704 | 55,065 | 20,969 | 2,722,252 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | - | 2.58 | 2.49 | - | - | - | - | 5.63 | |||||||||||||||||
| Variable Universal Life | - | 2.32 | 2.32 | - | - | - | - | 6.45 | |||||||||||||||||
| Survivorship Variable Universal Life II | - | 2.50 | 2.49 | - | - | - | - | 6.22 | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 1.11 | 0.90 | 1.00 | 0.94 | 1.08 | 0.98 | 0.99 | 1.02 | |||||||||||||||||
See Notes to Financial Statements.
| F-16 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| MML Small Cap Growth Equity Division | MML Strategic Emerging Markets Division | MML Total Return Bond Division | MML U.S. Government Money Market Division | PIMCO Global Bond Opportunities Division | PIMCO High Yield Division | PIMCO Real Return Division | PIMCO Total Return Division | ||||||||||||||||||
| (Unhedged) | |||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 794,146 | 2,371 | 3,565 | 13,469,302 | 7,541 | 7,265 | 387 | 2,624 | |||||||||||||||||
| Identified cost | $ | 9,557,665 | $ | 12,728 | $ | 31,780 | $ | 13,469,302 | $ | 70,663 | $ | 50,214 | $ | 4,525 | $ | 24,362 | |||||||||
| Value | $ | 7,815,427 | $ | 12,640 | $ | 32,192 | $ | 13,469,302 | $ | 72,549 | $ | 52,165 | $ | 4,479 | $ | 24,086 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | 248 | 4 | 8 | - | - | |||||||||||||||||
| Total assets | 7,815,427 | 12,640 | 32,192 | 13,469,550 | 72,553 | 52,173 | 4,479 | 24,086 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | 4 | - | - | - | - | - | - | - | |||||||||||||||||
| Total liabilities | 4 | - | - | - | - | - | - | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 7,815,423 | $ | 12,640 | $ | 32,192 | $ | 13,469,550 | $ | 72,553 | $ | 52,173 | $ | 4,479 | $ | 24,086 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 2,345,006 | 15,538 | 35,825 | 11,058,708 | 77,083 | 51,386 | 4,846 | 26,526 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | 5.67 | - | - | 1.44 | - | - | - | - | |||||||||||||||||
| Variable Universal Life | 4.22 | - | - | 1.30 | - | - | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | 4.53 | - | - | 1.32 | - | - | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | 0.93 | 0.81 | 0.90 | 1.06 | 0.94 | 1.02 | 0.92 | 0.91 | |||||||||||||||||
See Notes to Financial Statements.
| F-17 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| T. Rowe Price Blue Chip Growth Division | T. Rowe Price Equity Income Division | T. Rowe Price Limited-Term Bond Division | T. Rowe Price Mid-Cap Growth Division | Templeton Foreign VIP Division | Templeton Global Bond VIP Division | Vanguard VIF Balanced Division | Vanguard VIF Capital Growth Division | ||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Investments | |||||||||||||||||||||||||
| Number of shares | 126,432 | 264,325 | 207 | 2,097,412 | 328,761 | 593 | 3,618 | 2,897 | |||||||||||||||||
| Identified cost | $ | 4,509,986 | $ | 7,264,255 | $ | 952 | $ | 58,646,275 | $ | 4,471,665 | $ | 7,768 | $ | 79,527 | $ | 124,603 | |||||||||
| Value | $ | 5,839,902 | $ | 7,337,663 | $ | 967 | $ | 61,055,678 | $ | 4,681,554 | $ | 8,048 | $ | 84,270 | $ | 134,373 | |||||||||
| Dividends receivable | - | - | - | - | - | - | - | - | |||||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | - | - | - | |||||||||||||||||
| Total assets | 5,839,902 | 7,337,663 | 967 | 61,055,678 | 4,681,554 | 8,048 | 84,270 | 134,373 | |||||||||||||||||
| LIABILITIES | |||||||||||||||||||||||||
| Payable to C.M. Life Insurance Company | 18 | 12 | - | 3 | 4 | - | - | - | |||||||||||||||||
| Total liabilities | 18 | 12 | - | 3 | 4 | - | - | - | |||||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 5,839,884 | $ | 7,337,651 | $ | 967 | $ | 61,055,675 | $ | 4,681,550 | $ | 8,048 | $ | 84,270 | $ | 134,373 | |||||||||
| Outstanding Units | |||||||||||||||||||||||||
| Policy owners | 725,361 | 1,507,231 | 965 | 6,188,322 | 2,313,100 | 8,173 | 84,833 | 120,947 | |||||||||||||||||
| UNIT VALUE | |||||||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||
| Survivorship Variable Universal Life | 8.41 | 5.07 | - | 11.29 | 2.23 | - | - | - | |||||||||||||||||
| Variable Universal Life | 7.90 | 4.77 | - | 10.12 | 1.96 | - | - | - | |||||||||||||||||
| Survivorship Variable Universal Life II | 8.41 | 5.07 | - | 8.20 | 2.10 | - | - | - | |||||||||||||||||
| C.M. Life Electrum Select(SM) | - | - | 1.00 | - | - | 0.98 | 0.99 | 1.11 | |||||||||||||||||
See Notes to Financial Statements.
| F-18 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF ASSETS AND LIABILITIES (Continued)
December 31, 2023
| Vanguard VIF Diversified Value Division | Vanguard VIF Equity Income Division | Vanguard VIF Growth Division | Vanguard VIF International Division | Vanguard VIF Real Estate Index Division | Vanguard VIF Short-Term Investment-Grade Division | |||||||||||||||
| ASSETS | ||||||||||||||||||||
| Investments | ||||||||||||||||||||
| Number of shares | 6,001 | 14,018 | 419 | 4,498 | 3,013 | 7,679 | ||||||||||||||
| Identified cost | $ | 84,919 | $ | 317,492 | $ | 9,701 | $ | 108,898 | $ | 34,797 | $ | 76,472 | ||||||||
| Value | $ | 93,789 | $ | 335,159 | $ | 10,619 | $ | 110,506 | $ | 35,916 | $ | 79,166 | ||||||||
| Dividends receivable | - | - | - | - | - | - | ||||||||||||||
| Receivable from C.M. Life Insurance Company | - | - | - | - | - | 1 | ||||||||||||||
| Total assets | 93,789 | 335,159 | 10,619 | 110,506 | 35,916 | 79,167 | ||||||||||||||
| LIABILITIES | ||||||||||||||||||||
| Payable to C.M. Life Insurance Company | - | 2 | - | - | - | - | ||||||||||||||
| Total liabilities | - | 2 | - | - | - | - | ||||||||||||||
| NET ASSETS (For variable life insurance policies) | $ | 93,789 | $ | 335,157 | $ | 10,619 | $ | 110,506 | $ | 35,916 | $ | 79,167 | ||||||||
| Outstanding Units | ||||||||||||||||||||
| Policy owners | 86,592 | 303,023 | 11,286 | 135,773 | 41,678 | 79,027 | ||||||||||||||
| UNIT VALUE | ||||||||||||||||||||
| Executive Benefit Variable Universal Life | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||
| Survivorship Variable Universal Life | - | - | - | - | - | - | ||||||||||||||
| Variable Universal Life | - | - | - | - | - | - | ||||||||||||||
| Survivorship Variable Universal Life II | - | - | - | - | - | - | ||||||||||||||
| C.M. Life Electrum Select(SM) | 1.08 | 1.11 | 0.94 | 0.81 | 0.86 | 1.00 | ||||||||||||||
See Notes to Financial Statements.
| F-19 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
For The Year Ended December 31, 2023
| American | American | American Funds | American Funds | American Funds | American Funds | ||||||||||||||||||||
| Century | Century | American | American | Insurance Series® | Insurance Series® | Insurance Series® | Insurance Series® | ||||||||||||||||||
| VP Capital | VP Disciplined | Century | Century | Asset | Asset | Capital World | Global | ||||||||||||||||||
| Appreciation | Core Value | VP International | VP Value | Allocation | Allocation | Growth and Income | Growth | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| (Class 1) | (Class 2) | ||||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | 420,309 | $ | 1,401 | $ | 63,292 | $ | 544 | $ | 230,299 | $ | 1,137 | $ | 508 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 253 | 129,581 | 277 | 11,338 | 110 | 41,213 | 172 | 224 | |||||||||||||||||
| Net investment income (loss) | (253) | 290,728 | 1,124 | 51,954 | 434 | 189,086 | 965 | 284 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 341 | 211,474 | 1,860 | 47,390 | (13) | 20,169 | 42 | (161) | |||||||||||||||||
| Realized gain distribution | 156 | - | - | 205,533 | 841 | 390,568 | - | 2,758 | |||||||||||||||||
| Realized gain (loss) | 497 | 211,474 | 1,860 | 252,923 | 828 | 410,737 | 42 | 2,597 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 16,009 | 1,677,990 | 5,972 | (86,740) | 926 | 762,745 | 6,845 | 5,014 | |||||||||||||||||
| Net gain (loss) on investments | 16,506 | 1,889,464 | 7,832 | 166,183 | 1,754 | 1,173,482 | 6,887 | 7,611 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 16,253 | 2,180,192 | 8,956 | 218,137 | 2,188 | 1,362,568 | 7,852 | 7,895 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 15,457 | 900,652 | 104,343 | 89,703 | - | 377,206 | - | 13,667 | |||||||||||||||||
| Transfers due to death benefits | - | (141,182) | - | - | - | (806,463) | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (1) | (691,852) | - | (46,520) | - | (52,492) | - | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (175,164) | - | (35,176) | - | (56,472) | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (2,243) | (1,011,968) | (1,586) | (93,607) | (438) | (345,253) | (1,172) | (791) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 110,255 | 103,762 | (19,185) | 111,029 | 21,849 | 174,635 | 57,872 | 18,367 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 123,468 | (1,015,752) | 83,572 | 25,429 | 21,411 | (708,839) | 56,700 | 31,243 | |||||||||||||||||
| Total increase (decrease) | 139,721 | 1,164,440 | 92,528 | 243,566 | 23,599 | 653,729 | 64,552 | 39,138 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 11,860 | 27,707,765 | 56,372 | 2,563,563 | - | 10,357,028 | - | 11,814 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 151,581 | $ | 28,872,205 | $ | 148,900 | $ | 2,807,129 | $ | 23,599 | $ | 11,010,757 | $ | 64,552 | $ | 50,952 | |||||||||
See Notes to Financial Statements.
| F-20 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| American Funds | American Funds | American Funds | |||||||||||||||||||||||
| American Funds | Insurance Series® | American Funds | Insurance Series® | Insurance Series® | Black Rock | BNY Mellon | |||||||||||||||||||
| Insurance Series® | International | Insurance Series® | The Bond | Washington | Black Rock | Small Cap | MidCap | ||||||||||||||||||
| Growth-Income | Growth and Income | New World | Fund of America | Mutual Investors | High Yield V.I. | Index V.I. | Stock | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| (Class 2) | |||||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 149,440 | $ | 831 | $ | 271 | $ | 864 | $ | 181 | $ | 4,307 | $ | 1,717 | $ | 337 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 46,351 | 117 | 86 | 57 | 38 | 291 | 908 | 123 | |||||||||||||||||
| Net investment income (loss) | 103,089 | 714 | 185 | 807 | 143 | 4,016 | 809 | 214 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 77,774 | 17 | (20) | (48) | (36) | 37 | (279) | (452) | |||||||||||||||||
| Realized gain distribution | 567,586 | - | - | - | 123 | - | 4,028 | 1,977 | |||||||||||||||||
| Realized gain (loss) | 645,360 | 17 | (20) | (48) | 87 | 37 | 3,749 | 1,525 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 1,722,595 | 1,418 | 1,897 | 73 | 1,214 | 3,529 | 16,066 | 4,756 | |||||||||||||||||
| Net gain (loss) on investments | 2,367,955 | 1,435 | 1,877 | 25 | 1,301 | 3,566 | 19,815 | 6,281 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 2,471,044 | 2,149 | 2,062 | 832 | 1,444 | 7,582 | 20,624 | 6,495 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 249,545 | 7,455 | 2,508 | 9,537 | - | 12,977 | 101,242 | 4,671 | |||||||||||||||||
| Transfers due to death benefits | (253,510) | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (162,409) | (6) | - | (2) | - | 26 | (2) | (4) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (84,118) | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (292,768) | (633) | (271) | (606) | (257) | (639) | (3,955) | (1,565) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 37,958 | 25,028 | 1,441 | 13,388 | 10,810 | 34,660 | 7,747 | 73,674 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | (505,302) | 31,844 | 3,678 | 22,317 | 10,553 | 47,024 | 105,032 | 76,776 | |||||||||||||||||
| Total increase (decrease) | 1,965,742 | 33,993 | 5,740 | 23,149 | 11,997 | 54,606 | 125,656 | 83,271 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 9,958,087 | - | 11,718 | 3,833 | - | 40,891 | 121,493 | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 11,923,829 | $ | 33,993 | $ | 17,458 | $ | 26,982 | $ | 11,997 | $ | 95,497 | $ | 247,149 | $ | 83,271 | |||||||||
See Notes to Financial Statements.
| F-21 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Eaton Vance | |||||||||||||||||||||||||
| Delaware | Delaware VIP® | Delaware VIP® | DFA | DFA | DFA | DWS | VT | ||||||||||||||||||
| Ivy VIP Science | Emerging | Small Cap | VA International | U.S. Targeted | VIT Inflation- | Small Cap | Floating-Rate | ||||||||||||||||||
| and Technology | Markets | Value | Small | Value | Protected Securities | Index | Income | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | 989 | $ | 129 | $ | 1,709 | $ | 1,146 | $ | 637 | $ | 46,947 | $ | 215 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 7 | 159 | 45 | 304 | 412 | 96 | 17,344 | 8 | |||||||||||||||||
| Net investment income (loss) | (7) | 830 | 84 | 1,405 | 734 | 541 | 29,603 | 207 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 5 | (581) | (180) | (11) | (48) | (435) | (100,066) | (1) | |||||||||||||||||
| Realized gain distribution | 354 | - | 865 | - | 5,100 | - | 100,639 | - | |||||||||||||||||
| Realized gain (loss) | 359 | (581) | 685 | (11) | 5,052 | (435) | 573 | (1) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 2,285 | 9,452 | 1,110 | 4,945 | 6,915 | 417 | 623,835 | 57 | |||||||||||||||||
| Net gain (loss) on investments | 2,644 | 8,871 | 1,795 | 4,934 | 11,967 | (18) | 624,408 | 56 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 2,637 | 9,701 | 1,879 | 6,339 | 12,701 | 523 | 654,011 | 263 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 7,981 | 3,497 | 22,850 | 2,877 | 1,628 | 362 | 99,231 | 1,329 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | - | - | - | (11,865) | - | |||||||||||||||||
| Transfers due to withdrawal of funds | - | 1 | - | - | 1 | - | (249,808) | 1 | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | - | - | (16,708) | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (110) | (1,317) | (312) | (1,451) | (1,995) | (466) | (100,278) | (46) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 23,194 | 33,737 | 1,053 | 7,504 | 8,478 | (25) | 118,370 | 2,429 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 31,065 | 35,918 | 23,591 | 8,930 | 8,112 | (129) | (161,058) | 3,713 | |||||||||||||||||
| Total increase (decrease) | 33,702 | 45,619 | 25,470 | 15,269 | 20,813 | 394 | 492,953 | 3,976 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | 66,402 | 7,710 | 42,517 | 60,005 | 16,254 | 4,075,492 | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 33,702 | $ | 112,021 | $ | 33,180 | $ | 57,786 | $ | 80,818 | $ | 16,648 | $ | 4,568,445 | $ | 3,976 | |||||||||
See Notes to Financial Statements.
| F-22 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Fidelity® | |||||||||||||||||||||||||
| Fidelity® | Fidelity® | VIP | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | ||||||||||||||||||
| VIP | VIP | Extended | VIP | VIP | VIP | VIP | VIP | ||||||||||||||||||
| Bond Index | Contrafund® | Market Index | Freedom 2020 | Freedom 2025 | Freedom 2030 | Freedom 2035 | Freedom 2040 | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 691 | $ | 352,809 | $ | 3,082 | $ | 7 | $ | 5,409 | $ | 3,245 | $ | 2,395 | $ | 6,199 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 73 | 331,613 | 509 | 1 | 674 | 469 | 407 | 1,133 | |||||||||||||||||
| Net investment income (loss) | 618 | 21,196 | 2,573 | 6 | 4,735 | 2,776 | 1,988 | 5,066 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (14) | 2,824,167 | 1,708 | 4 | (455) | (199) | 13 | 3,007 | |||||||||||||||||
| Realized gain distribution | - | 2,545,957 | - | - | - | - | 160 | 1,028 | |||||||||||||||||
| Realized gain (loss) | (14) | 5,370,124 | 1,708 | 4 | (455) | (199) | 173 | 4,035 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 250 | 14,819,555 | 26,007 | 19 | 18,082 | 9,436 | 13,337 | 37,670 | |||||||||||||||||
| Net gain (loss) on investments | 236 | 20,189,679 | 27,715 | 23 | 17,627 | 9,237 | 13,510 | 41,705 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 854 | 20,210,875 | 30,288 | 29 | 22,362 | 12,013 | 15,498 | 46,771 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 4,971 | 1,668,747 | 12,527 | 170 | 127,283 | 26,808 | 62,172 | 124,700 | |||||||||||||||||
| Transfers due to death benefits | - | (582,924) | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (2) | (2,505,681) | (6) | - | 1 | - | (1) | 1 | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (1,017,912) | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (657) | (2,285,652) | (1,589) | (5) | (2,948) | (2,236) | (1,904) | (5,505) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 32,221 | 647,944 | 96,597 | 183 | 1,828 | 142,652 | 21,634 | 325,942 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 36,533 | (4,075,478) | 107,529 | 348 | 126,164 | 167,224 | 81,901 | 445,138 | |||||||||||||||||
| Total increase (decrease) | 37,387 | 16,135,397 | 137,817 | 377 | 148,526 | 179,237 | 97,399 | 491,909 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | 63,406,218 | 154,173 | - | 94,841 | 4,504 | 48,292 | 66,312 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 37,387 | $ | 79,541,615 | $ | 291,990 | $ | 377 | $ | 243,367 | $ | 183,741 | $ | 145,691 | $ | 558,221 | |||||||||
See Notes to Financial Statements.
| F-23 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | ||||||||||||||||||
| VIP | VIP | VIP | VIP | VIP | VIP | VIP | VIP | ||||||||||||||||||
| Freedom 2045 | Freedom 2050 | Freedom 2055 | Freedom 2060 | Freedom 2065 | Freedom Income | Growth | Index 500 | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| (Initial Class) | |||||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 772 | $ | 2,280 | $ | 1,061 | $ | 1,261 | $ | 26 | $ | 1,250 | $ | 137 | $ | - | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 161 | 431 | 240 | 200 | 6 | 103 | 1,203 | - | |||||||||||||||||
| Net investment income (loss) | 611 | 1,849 | 821 | 1,061 | 20 | 1,147 | (1,066) | - | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 1 | 1,513 | (238) | 1,558 | (2) | (42) | 4,947 | - | |||||||||||||||||
| Realized gain distribution | 445 | 297 | 589 | 122 | 16 | - | 16,162 | - | |||||||||||||||||
| Realized gain (loss) | 446 | 1,810 | 351 | 1,680 | 14 | (42) | 21,109 | - | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 6,418 | 15,482 | 9,774 | 8,087 | 192 | 743 | 60,361 | 1 | |||||||||||||||||
| Net gain (loss) on investments | 6,864 | 17,292 | 10,125 | 9,767 | 206 | 701 | 81,470 | 1 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 7,475 | 19,141 | 10,946 | 10,828 | 226 | 1,848 | 80,404 | 1 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 33,480 | 65,605 | 30,958 | 29,277 | 498 | 13,871 | 138,298 | - | |||||||||||||||||
| Transfers due to death benefits | - | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | - | - | - | - | - | (3) | (65) | (1) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (703) | (2,036) | (1,069) | (1,077) | (30) | (836) | (9,646) | - | |||||||||||||||||
| Transfers between Divisions and to/from General Account | (565) | 124,158 | 12,256 | 53,157 | 922 | 28,186 | 225,881 | - | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 32,212 | 187,727 | 42,145 | 81,357 | 1,390 | 41,218 | 354,468 | (1) | |||||||||||||||||
| Total increase (decrease) | 39,687 | 206,868 | 53,091 | 92,185 | 1,616 | 43,066 | 434,872 | - | |||||||||||||||||
| NET ASSETS, at beginning of the year | 23,440 | 14,306 | 35,748 | 12,178 | 426 | 2,173 | 17,312 | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 63,127 | $ | 221,174 | $ | 88,839 | $ | 104,363 | $ | 2,042 | $ | 45,239 | $ | 452,184 | $ | - | |||||||||
See Notes to Financial Statements.
| F-24 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Franklin | Franklin | Goldman | Goldman | Goldman | |||||||||||||||||||||
| Fidelity® | Fidelity® | Fidelity® | Small Cap | Strategic | Sachs | Sachs | Sachs | ||||||||||||||||||
| VIP | VIP | VIP | Value | Income | Core Fixed | International | Mid Cap | ||||||||||||||||||
| Index 500 | International Index | Overseas | VIP | VIP | Income | Equity Insights | Growth | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| (Service Class) | |||||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 13,380 | $ | 4,124 | $ | 1,040 | $ | 21,458 | $ | 197 | $ | 8 | $ | 1,008 | $ | - | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 3,647 | 435 | 219 | 17,647 | 13 | 1 | 49 | 12 | |||||||||||||||||
| Net investment income (loss) | 9,733 | 3,689 | 821 | 3,811 | 184 | 7 | 959 | (12) | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (1,753) | (355) | (12) | (194,858) | (124) | - | 21 | 5 | |||||||||||||||||
| Realized gain distribution | 4,583 | - | 263 | 232,629 | - | - | - | 35 | |||||||||||||||||
| Realized gain (loss) | 2,830 | (355) | 251 | 37,771 | (124) | - | 21 | 40 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 174,997 | 19,216 | 4,971 | 440,353 | - | 6 | 2,870 | 563 | |||||||||||||||||
| Net gain (loss) on investments | 177,827 | 18,861 | 5,222 | 478,124 | (124) | 6 | 2,891 | 603 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 187,560 | 22,550 | 6,043 | 481,935 | 60 | 13 | 3,850 | 591 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 534,528 | 108,023 | - | 159,606 | 8,960 | 152 | 9,807 | - | |||||||||||||||||
| Transfers due to death benefits | - | - | - | (13,172) | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (209) | (3) | (1) | (57,918) | - | - | - | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | (59,819) | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (16,481) | (3,125) | (249) | (140,802) | (503) | (4) | (335) | (118) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 247,365 | 20,291 | 100,069 | (129,399) | (8,517) | 248 | 33,982 | 4,869 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 765,203 | 125,186 | 99,819 | (241,504) | (60) | 396 | 43,454 | 4,751 | |||||||||||||||||
| Total increase (decrease) | 952,763 | 147,736 | 105,862 | 240,431 | - | 409 | 47,304 | 5,342 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 407,222 | 91,354 | - | 4,114,825 | - | - | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 1,359,985 | $ | 239,090 | $ | 105,862 | $ | 4,355,256 | $ | - | $ | 409 | $ | 47,304 | $ | 5,342 | |||||||||
See Notes to Financial Statements.
| F-25 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Goldman | Goldman | Invesco | |||||||||||||||||||||||
| Sachs | Sachs | Oppenheimer V.I. | Invesco V.I. | Invesco V.I. | Invesco V.I. | ||||||||||||||||||||
| Mid Cap | Strategic | International | Capital | Invesco V.I. | Discovery | Diversified | Invesco V.I. | ||||||||||||||||||
| Value | Growth | Growth | Appreciation | Core Plus Bond | Mid Cap Growth | Dividend | Global | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 2,296 | $ | - | $ | 22,585 | $ | - | $ | 70,406 | $ | - | $ | 14,192 | $ | 118,534 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 883 | 25,906 | 15,920 | 235,154 | 11,113 | 246,592 | 2,752 | 249,670 | |||||||||||||||||
| Net investment income (loss) | 1,413 | (25,906) | 6,665 | (235,154) | 59,293 | (246,592) | 11,440 | (131,136) | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (1,216) | 7,938 | (149,768) | (756,913) | (35,010) | 577,584 | (4,028) | 1,671,059 | |||||||||||||||||
| Realized gain distribution | 5,655 | 273,606 | - | - | - | - | 58,448 | 5,994,259 | |||||||||||||||||
| Realized gain (loss) | 4,439 | 281,544 | (149,768) | (756,913) | (35,010) | 577,584 | 54,420 | 7,665,318 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 17,785 | 1,939,720 | 865,285 | 16,350,159 | 125,854 | 5,954,473 | (7,834) | 7,508,118 | |||||||||||||||||
| Net gain (loss) on investments | 22,224 | 2,221,264 | 715,517 | 15,593,246 | 90,844 | 6,532,057 | 46,586 | 15,173,436 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 23,637 | 2,195,358 | 722,182 | 15,358,092 | 150,137 | 6,285,465 | 58,026 | 15,042,300 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 4,587 | 119,137 | 99,491 | 1,467,285 | 124,673 | 1,534,215 | 38,686 | 1,589,067 | |||||||||||||||||
| Transfers due to death benefits | - | (8,797) | (2,518) | (189,116) | (8,485) | (354,448) | - | (281,151) | |||||||||||||||||
| Transfers due to withdrawal of funds | (2) | (32,918) | (117,165) | (864,043) | (79,421) | (1,698,558) | (3,049) | (1,865,164) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (80,902) | (120,278) | (555,398) | (9,243) | (684,063) | (3,615) | (599,774) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (1,265) | (197,756) | (158,044) | (1,800,943) | (109,749) | (1,593,749) | (34,440) | (1,764,586) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 127,892 | (209,663) | (114,620) | 355,621 | 118,229 | (2,371,461) | 35,117 | (372,315) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 131,212 | (410,899) | (413,134) | (1,586,594) | 36,004 | (5,168,064) | 32,699 | (3,293,923) | |||||||||||||||||
| Total increase (decrease) | 154,849 | 1,784,459 | 309,048 | 13,771,498 | 186,141 | 1,117,401 | 90,725 | 11,748,377 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 209,931 | 5,435,947 | 3,747,356 | 44,834,018 | 2,604,427 | 53,052,881 | 646,113 | 45,622,416 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 364,780 | $ | 7,220,406 | $ | 4,056,404 | $ | 58,605,516 | $ | 2,790,568 | $ | 54,170,282 | $ | 736,838 | $ | 57,370,793 | |||||||||
See Notes to Financial Statements.
| F-26 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Invesco V.I. | Invesco V.I. | Invesco V.I. | Invesco V.I. | Janus | Janus | ||||||||||||||||||||
| Global | Global | Health | Invesco V.I. | Small Cap | Invesco V.I. | Henderson | Henderson | ||||||||||||||||||
| Real Estate | Strategic Income | Care | Main Street | Equity | Technology | Balanced | Forty | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 125 | $ | - | $ | - | $ | 131,175 | $ | - | $ | - | $ | 73,043 | $ | 38,541 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 25 | 31,214 | 4,900 | 69,718 | 347 | 6,837 | 19,103 | 86,822 | |||||||||||||||||
| Net investment income (loss) | 100 | (31,214) | (4,900) | 61,457 | (347) | (6,837) | 53,940 | (48,281) | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (17) | (154,461) | (3,988) | (519,651) | (728) | (69,542) | 79,679 | 116,377 | |||||||||||||||||
| Realized gain distribution | - | - | - | 1,066,622 | 2,153 | - | - | - | |||||||||||||||||
| Realized gain (loss) | (17) | (154,461) | (3,988) | 546,971 | 1,425 | (69,542) | 79,679 | 116,377 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 215 | 756,566 | 34,828 | 2,522,651 | 15,944 | 626,714 | 419,453 | 6,396,916 | |||||||||||||||||
| Net gain (loss) on investments | 198 | 602,105 | 30,840 | 3,069,622 | 17,369 | 557,172 | 499,132 | 6,513,293 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 298 | 570,891 | 25,940 | 3,131,079 | 17,022 | 550,335 | 553,072 | 6,465,012 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | - | 382,324 | 22,354 | 394,031 | 58,320 | 54,650 | 83,854 | 399,468 | |||||||||||||||||
| Transfers due to death benefits | - | (30,268) | (20,279) | (128,247) | - | (823) | (3,794) | (203,853) | |||||||||||||||||
| Transfers due to withdrawal of funds | - | (70,674) | (2,694) | (385,706) | 1 | (3,891) | (50,609) | (204,471) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (51,099) | (20,430) | (197,152) | - | (23,049) | (29,335) | (318,151) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (172) | (350,158) | (37,925) | (386,843) | (1,877) | (80,062) | (139,138) | (552,617) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 10,477 | (58,473) | 41,175 | 77,594 | 181 | 118,370 | 25,333 | (25,127) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 10,305 | (178,348) | (17,799) | (626,323) | 56,625 | 65,195 | (113,689) | (904,751) | |||||||||||||||||
| Total increase (decrease) | 10,603 | 392,543 | 8,141 | 2,504,756 | 73,647 | 615,530 | 439,383 | 5,560,261 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | 6,917,394 | 1,059,257 | 14,057,896 | 49,903 | 1,140,631 | 3,859,458 | 16,768,158 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 10,603 | $ | 7,309,937 | $ | 1,067,398 | $ | 16,562,652 | $ | 123,550 | $ | 1,756,161 | $ | 4,298,841 | $ | 22,328,419 | |||||||||
See Notes to Financial Statements.
| F-27 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Janus | |||||||||||||||||||||||||
| Henderson | MFS® | MFS® | MFS® | MFS® | MFS® | MFS® | |||||||||||||||||||
| Global | Global | Growth | International | Investors | Mid Cap | New | MFS® | ||||||||||||||||||
| Research | Real Estate | Series | Intrinsic Value | Trust | Value | Discovery | Value | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 113,985 | $ | 90 | $ | - | $ | 272 | $ | 1,410 | $ | 2,637 | $ | - | $ | 8,564 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 54,984 | 33 | 57 | 99 | 750 | 396 | 5,901 | 1,436 | |||||||||||||||||
| Net investment income (loss) | 59,001 | 57 | (57) | 173 | 660 | 2,241 | (5,901) | 7,128 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 343,084 | (237) | 1,435 | 18 | 61 | (2,465) | (17,193) | (610) | |||||||||||||||||
| Realized gain distribution | 343,048 | 735 | 2,214 | 2,829 | 10,850 | 5,001 | - | 35,997 | |||||||||||||||||
| Realized gain (loss) | 686,132 | 498 | 3,649 | 2,847 | 10,911 | 2,536 | (17,193) | 35,387 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 2,091,265 | 517 | 479 | 935 | 21,287 | 7,367 | 184,167 | (2,037) | |||||||||||||||||
| Net gain (loss) on investments | 2,777,397 | 1,015 | 4,128 | 3,782 | 32,198 | 9,903 | 166,974 | 33,350 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 2,836,398 | 1,072 | 4,071 | 3,955 | 32,858 | 12,144 | 161,073 | 40,478 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 332,811 | 1,928 | 11,173 | - | 3,324 | 40,205 | 26,297 | 400,018 | |||||||||||||||||
| Transfers due to death benefits | (81,349) | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (193,588) | - | - | (1) | (6,014) | (20) | (20,764) | 4 | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (190,514) | - | - | - | (1,443) | - | (8,216) | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (297,592) | (254) | (313) | (291) | (10,531) | (3,448) | (35,628) | (5,933) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 457,212 | 2,277 | 942 | 49,086 | (6,012) | 110,863 | 43,037 | 10,266 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 26,980 | 3,951 | 11,802 | 48,794 | (20,676) | 147,600 | 4,726 | 404,355 | |||||||||||||||||
| Total increase (decrease) | 2,863,378 | 5,023 | 15,873 | 52,749 | 12,182 | 159,744 | 165,799 | 444,833 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 10,671,243 | 7,015 | - | 13,707 | 187,757 | 6,771 | 1,153,678 | 167,026 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 13,534,621 | $ | 12,038 | $ | 15,873 | $ | 66,456 | $ | 199,939 | $ | 166,515 | $ | 1,319,477 | $ | 611,859 | |||||||||
See Notes to Financial Statements.
| F-28 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| MML | MML | MML | MML | MML | MML | ||||||||||||||||||||
| Aggressive | American Funds | Balanced | MML | Blue Chip | Conservative | Dynamic | MML | ||||||||||||||||||
| Allocation | Growth | Allocation | Blend | Growth | Allocation | Bond | Equity | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 1,216 | $ | 2,244 | $ | 163 | $ | 309,047 | $ | - | $ | 369 | $ | 338 | $ | 854,101 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 193 | 169 | 124 | 78,898 | 23,256 | 34 | 25 | 199,704 | |||||||||||||||||
| Net investment income (loss) | 1,023 | 2,075 | 39 | 230,149 | (23,256) | 335 | 313 | 654,397 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (184) | (3,944) | (10,378) | (205,896) | (31,538) | (1,550) | (19) | 795,903 | |||||||||||||||||
| Realized gain distribution | 5,006 | 23,941 | 420 | - | - | 828 | - | 3,254,676 | |||||||||||||||||
| Realized gain (loss) | 4,822 | 19,997 | (9,958) | (205,896) | (31,538) | (722) | (19) | 4,050,579 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 1,224 | 32,629 | 11,658 | 2,871,177 | 2,185,773 | 1,677 | 123 | (1,242,290) | |||||||||||||||||
| Net gain (loss) on investments | 6,046 | 52,626 | 1,700 | 2,665,281 | 2,154,235 | 955 | 104 | 2,808,289 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 7,069 | 54,701 | 1,739 | 2,895,430 | 2,130,979 | 1,290 | 417 | 3,462,686 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | - | 2 | - | 631,966 | 160,031 | - | 4,069 | 1,474,139 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | (206,580) | (38,408) | - | - | (307,610) | |||||||||||||||||
| Transfers due to withdrawal of funds | - | 3 | - | (346,971) | (61,159) | - | - | (1,667,819) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | (110,510) | (68,101) | - | - | (487,933) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (235) | (1,200) | (577) | (859,142) | (170,571) | (82) | (228) | (1,735,746) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 47,314 | 113,609 | (84,363) | 313,202 | 75,409 | 16,454 | - | 183,464 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 47,079 | 112,414 | (84,940) | (578,035) | (102,799) | 16,372 | 3,841 | (2,541,505) | |||||||||||||||||
| Total increase (decrease) | 54,148 | 167,115 | (83,201) | 2,317,395 | 2,028,180 | 17,662 | 4,258 | 921,181 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 32,245 | 141,183 | 91,521 | 17,184,867 | 4,393,641 | 4,299 | 3,801 | 41,303,532 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 86,393 | $ | 308,298 | $ | 8,320 | $ | 19,502,262 | $ | 6,421,821 | $ | 21,961 | $ | 8,059 | $ | 42,224,713 | |||||||||
See Notes to Financial Statements.
| F-29 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| MML | |||||||||||||||||||||||||
| MML | MML | MML | MML | MML | Inflation- | ||||||||||||||||||||
| Equity | Equity | Focused | MML | MML | Growth | Income & | Protected | ||||||||||||||||||
| Income | Index | Equity | Foreign | Global | Allocation | Growth | and Income | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 1,749 | $ | 761,776 | $ | 595 | $ | 1,106 | $ | 156 | $ | 4,169 | $ | 1,015 | $ | 69,164 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 289 | 237,551 | 231 | 327 | 37 | 647 | 242 | 7,189 | |||||||||||||||||
| Net investment income (loss) | 1,460 | 524,225 | 364 | 779 | 119 | 3,522 | 773 | 61,975 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (159) | 1,857,700 | (660) | (181) | (10,584) | (1,174) | (2,653) | (26,387) | |||||||||||||||||
| Realized gain distribution | 6,285 | 5,087,885 | 5,626 | - | 1,262 | 18,160 | 6,128 | - | |||||||||||||||||
| Realized gain (loss) | 6,126 | 6,945,585 | 4,966 | (181) | (9,322) | 16,986 | 3,475 | (26,387) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (3,620) | 4,888,456 | (70) | 9,262 | 11,060 | 881 | (761) | 31,886 | |||||||||||||||||
| Net gain (loss) on investments | 2,506 | 11,834,041 | 4,896 | 9,081 | 1,738 | 17,867 | 2,714 | 5,499 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 3,966 | 12,358,266 | 5,260 | 9,860 | 1,857 | 21,389 | 3,487 | 67,474 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 2 | 1,158,926 | - | 24,028 | - | - | - | 106,036 | |||||||||||||||||
| Transfers due to death benefits | - | (251,956) | - | - | - | - | - | (10,243) | |||||||||||||||||
| Transfers due to withdrawal of funds | - | (1,479,884) | - | 1 | (1) | (3) | (1) | (5,207) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (1,273,137) | - | - | - | - | - | (29,409) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (1,538) | (1,473,309) | (1,222) | (1,780) | (101) | (787) | (294) | (113,561) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 84,622 | 270,369 | 56,520 | 4,989 | (1,925) | 68,664 | 677 | 132,182 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 83,086 | (3,048,991) | 55,298 | 27,238 | (2,027) | 67,874 | 382 | 79,798 | |||||||||||||||||
| Total increase (decrease) | 87,052 | 9,309,275 | 60,558 | 37,098 | (170) | 89,263 | 3,869 | 147,272 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | 49,911,583 | - | 52,376 | 16,489 | 145,598 | 63,645 | 1,377,748 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 87,052 | $ | 59,220,858 | $ | 60,558 | $ | 89,474 | $ | 16,319 | $ | 234,861 | $ | 67,514 | $ | 1,525,020 | |||||||||
See Notes to Financial Statements.
| F-30 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| MML | |||||||||||||||||||||||||
| MML | MML | MML | MML | MML | MML | Short- | MML | ||||||||||||||||||
| Large Cap | Managed | Managed | Mid Cap | Mid Cap | Moderate | Duration | Small Cap | ||||||||||||||||||
| Growth | Bond | Volatility | Growth | Value | Allocation | Bond | Equity | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | 318,964 | $ | 10,041 | $ | - | $ | 1,979 | $ | 1,073 | $ | 338 | $ | 197,739 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 279 | 34,440 | 6,318 | 468 | 287 | 155 | 31 | 68,525 | |||||||||||||||||
| Net investment income (loss) | (279) | 284,524 | 3,723 | (468) | 1,692 | 918 | 307 | 129,214 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (69) | (152,071) | 11,284 | (2,927) | (273) | (462) | (4) | 20,117 | |||||||||||||||||
| Realized gain distribution | 4,605 | - | 318,638 | - | 11,884 | 3,232 | - | - | |||||||||||||||||
| Realized gain (loss) | 4,536 | (152,071) | 329,922 | (2,927) | 11,611 | 2,770 | (4) | 20,117 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 19,866 | 365,751 | (131,183) | 20,590 | (12,090) | 821 | 270 | 2,358,535 | |||||||||||||||||
| Net gain (loss) on investments | 24,402 | 213,680 | 198,739 | 17,663 | (479) | 3,591 | 266 | 2,378,652 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 24,123 | 498,204 | 202,462 | 17,195 | 1,213 | 4,509 | 573 | 2,507,866 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 16,064 | 333,022 | 60,827 | 60,653 | - | - | 4,070 | 384,273 | |||||||||||||||||
| Transfers due to death benefits | - | (103,652) | (11,241) | - | - | - | - | (39,942) | |||||||||||||||||
| Transfers due to withdrawal of funds | (1) | (156,316) | (20,076) | 1 | (1) | (1) | - | (321,202) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (53,987) | (15,910) | - | - | - | - | (103,470) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (1,142) | (428,741) | (85,519) | (2,497) | (1,525) | (187) | (244) | (435,283) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 8,306 | 262,474 | (10,733) | 48,663 | 86,320 | 13,732 | 12,312 | 281,438 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 23,227 | (147,200) | (82,652) | 106,820 | 84,794 | 13,544 | 16,138 | (234,186) | |||||||||||||||||
| Total increase (decrease) | 47,350 | 351,004 | 119,810 | 124,015 | 86,007 | 18,053 | 16,711 | 2,273,680 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 38,599 | 8,063,734 | 1,663,432 | 53,370 | - | 36,023 | 3,967 | 14,569,026 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 85,949 | $ | 8,414,738 | $ | 1,783,242 | $ | 177,385 | $ | 86,007 | $ | 54,076 | $ | 20,678 | $ | 16,842,706 | |||||||||
See Notes to Financial Statements.
| F-31 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| MML | |||||||||||||||||||||||||
| MML | Strategic | MML | MML U.S. | PIMCO | |||||||||||||||||||||
| Small Cap | Emerging | Total Return | Government | Global Bond | PIMCO | PIMCO | PIMCO | ||||||||||||||||||
| Growth Equity | Markets | Bond | Money Market | Opportunities | High Yield | Real Return | Total Return | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| (Unhedged) | |||||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | 12 | $ | 628 | $ | 448,526 | $ | 1,523 | $ | 1,107 | $ | 62 | $ | 520 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 31,488 | 33 | 98 | 40,562 | 204 | 55 | 6 | 44 | |||||||||||||||||
| Net investment income (loss) | (31,488) | (21) | 530 | 407,964 | 1,319 | 1,052 | 56 | 476 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (332,050) | (19) | (27) | 681 | (519) | (16) | (13) | (37) | |||||||||||||||||
| Realized gain distribution | - | - | - | - | 729 | - | - | - | |||||||||||||||||
| Realized gain (loss) | (332,050) | (19) | (27) | 681 | 210 | (16) | (13) | (37) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 1,431,495 | (89) | 840 | (681) | 1,870 | 1,951 | 47 | 368 | |||||||||||||||||
| Net gain (loss) on investments | 1,099,445 | (108) | 813 | - | 2,080 | 1,935 | 34 | 331 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 1,067,957 | (129) | 1,343 | 407,964 | 3,399 | 2,987 | 90 | 807 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 221,224 | 3,777 | 11,875 | 7,814,517 | 1,533 | 50,272 | - | 150 | |||||||||||||||||
| Transfers due to death benefits | (58,300) | - | - | (49,800) | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (125,260) | (2) | - | (2,542,831) | 3 | (31) | - | 1 | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (64,726) | - | - | (124,802) | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (201,121) | (256) | (363) | (728,888) | (1,974) | (1,055) | (10) | (83) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 337,129 | 9,250 | 10,264 | 326,770 | (2,033) | - | 2,828 | 9,619 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 108,946 | 12,769 | 21,776 | 4,694,966 | (2,471) | 49,186 | 2,818 | 9,687 | |||||||||||||||||
| Total increase (decrease) | 1,176,903 | 12,640 | 23,119 | 5,102,930 | 928 | 52,173 | 2,908 | 10,494 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 6,638,520 | - | 9,073 | 8,366,620 | 71,625 | - | 1,571 | 13,592 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 7,815,423 | $ | 12,640 | $ | 32,192 | $ | 13,469,550 | $ | 72,553 | $ | 52,173 | $ | 4,479 | $ | 24,086 | |||||||||
See Notes to Financial Statements.
| F-32 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| T. Rowe Price | T. Rowe Price | T. Rowe Price | Templeton | Templeton | |||||||||||||||||||||
| Blue Chip | T. Rowe Price | Limited-Term | Mid-Cap | Foreign | Global Bond | Vanguard VIF | Vanguard VIF | ||||||||||||||||||
| Growth | Equity Income | Bond | Growth | VIP | VIP | Balanced | Capital Growth | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | 146,530 | $ | 52 | $ | - | $ | 140,004 | $ | - | $ | 541 | $ | 1,234 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 22,916 | 31,351 | 8 | 271,125 | 18,039 | 25 | 257 | 626 | |||||||||||||||||
| Net investment income (loss) | (22,916) | 115,179 | 44 | (271,125) | 121,965 | (25) | 284 | 608 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 135,638 | (40,219) | 2 | 552,267 | (27,293) | 4 | (43) | (465) | |||||||||||||||||
| Realized gain distribution | - | 298,283 | - | 3,665,015 | - | - | 1,049 | 5,945 | |||||||||||||||||
| Realized gain (loss) | 135,638 | 258,064 | 2 | 4,217,282 | (27,293) | 4 | 1,006 | 5,480 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 1,821,371 | 233,770 | 23 | 6,248,662 | 690,674 | 175 | 4,818 | 22,155 | |||||||||||||||||
| Net gain (loss) on investments | 1,957,009 | 491,834 | 25 | 10,465,944 | 663,381 | 179 | 5,824 | 27,635 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 1,934,093 | 607,013 | 69 | 10,194,819 | 785,346 | 154 | 6,108 | 28,243 | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 76,448 | 221,396 | 2,373 | 1,199,811 | 134,755 | 4,070 | 54,645 | 58,214 | |||||||||||||||||
| Transfers due to death benefits | (6,857) | (28,769) | - | (362,658) | (20,180) | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (25,519) | (224,808) | - | (2,136,071) | (76,220) | - | (44) | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (27,109) | (152,733) | - | (723,354) | (42,594) | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (160,099) | (306,182) | (188) | (1,818,062) | (139,586) | (233) | (1,426) | (1,954) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 40,041 | (13,356) | (1,736) | 70,637 | 159,452 | - | 14,164 | - | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | (103,095) | (504,452) | 449 | (3,769,697) | 15,627 | 3,837 | 67,339 | 56,260 | |||||||||||||||||
| Total increase (decrease) | 1,830,998 | 102,561 | 518 | 6,425,122 | 800,973 | 3,991 | 73,447 | 84,503 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 4,008,886 | 7,235,090 | 449 | 54,630,553 | 3,880,577 | 4,057 | 10,823 | 49,870 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 5,839,884 | $ | 7,337,651 | $ | 967 | $ | 61,055,675 | $ | 4,681,550 | $ | 8,048 | $ | 84,270 | $ | 134,373 | |||||||||
See Notes to Financial Statements.
| F-33 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2023
| Vanguard VIF | Vanguard VIF | |||||||||||||||||||
| Vanguard VIF | Vanguard VIF | Vanguard VIF | Vanguard VIF | Real Estate | Short-Term | |||||||||||||||
| Diversified Value | Equity Income | Growth | International | Index | Investment-Grade | |||||||||||||||
| Division | Division | Division | Division | Division | Division | |||||||||||||||
| Investment income | ||||||||||||||||||||
| Dividends | $ | 946 | $ | 6,825 | $ | - | $ | 1,411 | $ | 599 | $ | 805 | ||||||||
| Expenses | ||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 432 | 1,383 | 17 | 477 | 156 | 365 | ||||||||||||||
| Net investment income (loss) | 514 | 5,442 | (17) | 934 | 443 | 440 | ||||||||||||||
| Net realized and unrealized gain (loss) on investments | ||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 108 | (12,778) | 4 | (135) | (1,338) | 2 | ||||||||||||||
| Realized gain distribution | 3,594 | 13,343 | - | 3,043 | 1,129 | - | ||||||||||||||
| Realized gain (loss) | 3,702 | 565 | 4 | 2,908 | (209) | 2 | ||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | 9,150 | 16,044 | 919 | 1,608 | 3,329 | 2,770 | ||||||||||||||
| Net gain (loss) on investments | 12,852 | 16,609 | 923 | 4,516 | 3,120 | 2,772 | ||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 13,366 | 22,051 | 906 | 5,450 | 3,563 | 3,212 | ||||||||||||||
| Capital transactions: | ||||||||||||||||||||
| Transfers of net premiums | 14,993 | 223,084 | 2,061 | 1 | 16,318 | 38,390 | ||||||||||||||
| Transfers due to death benefits | - | - | - | - | - | - | ||||||||||||||
| Transfers due to withdrawal of funds | - | (2) | - | - | - | 1 | ||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | - | - | ||||||||||||||
| Transfers due to charges for administrative and insurance costs | (1,887) | (6,512) | (52) | (1,900) | (533) | (390) | ||||||||||||||
| Transfers between Divisions and to/from General Account | 11,103 | (67,987) | 7,704 | 106,955 | (3,880) | - | ||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 24,209 | 148,583 | 9,713 | 105,056 | 11,905 | 38,001 | ||||||||||||||
| Total increase (decrease) | 37,575 | 170,634 | 10,619 | 110,506 | 15,468 | 41,213 | ||||||||||||||
| NET ASSETS, at beginning of the year | 56,214 | 164,523 | - | - | 20,448 | 37,954 | ||||||||||||||
| NET ASSETS, at end of the year | $ | 93,789 | $ | 335,157 | $ | 10,619 | $ | 110,506 | $ | 35,916 | $ | 79,167 | ||||||||
See Notes to Financial Statements.
| F-34 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS
For The Year Ended December 31, 2022
| American | American | American | American | ||||||||||||||||||||||
| Century | Century | American | American | Funds® | American | American | Funds® | ||||||||||||||||||
| VP Capital | VP Disciplined | Century | Century | Asset | Funds® | Funds® | IS Global | ||||||||||||||||||
| Appreciation | Core Value | VP International | VP Value | Allocation | Growth-Income | IS Bond | Growth-Income | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | 522,340 | $ | 2 | $ | 53,103 | $ | 206,007 | $ | 135,355 | $ | 101 | $ | 85 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 14 | 141,267 | 51 | 11,078 | 42,781 | 45,505 | 7 | 29 | |||||||||||||||||
| Net investment income (loss) | (14) | 381,073 | (49) | 42,025 | 163,226 | 89,850 | 94 | 56 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (226) | 666,033 | (64) | 178,456 | 18,073 | 131,991 | (3) | (89) | |||||||||||||||||
| Realized gain distribution | 191 | 7,232,543 | 17 | 202,768 | 1,085,275 | 1,040,413 | - | 235 | |||||||||||||||||
| Realized gain (loss) | (35) | 7,898,576 | (47) | 381,224 | 1,103,348 | 1,172,404 | (3) | 146 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (111) | (12,620,059) | (394) | (416,557) | (2,884,761) | (3,316,005) | (222) | (231) | |||||||||||||||||
| Net gain (loss) on investments | (146) | (4,721,483) | (441) | (35,333) | (1,781,413) | (2,143,601) | (225) | (85) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (160) | (4,340,410) | (490) | 6,692 | (1,618,187) | (2,053,751) | (131) | (29) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 12,312 | 877,085 | 36,551 | 86,528 | 382,060 | 283,028 | 4,069 | 10,957 | |||||||||||||||||
| Transfers due to death benefits | - | (152,376) | - | - | (15,256) | (69,862) | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (54) | (840,607) | (10) | (128,603) | (188,186) | (173,323) | - | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | (272,579) | - | (186,617) | (55,427) | (100,300) | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (244) | (1,018,996) | (563) | (85,440) | (357,949) | (278,172) | (105) | (184) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 6 | (33,534) | 20,884 | 104,480 | 350,891 | 151,062 | - | 1,070 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 12,020 | (1,441,007) | 56,862 | (209,652) | 116,133 | (187,567) | 3,964 | 11,843 | |||||||||||||||||
| Total increase (decrease) | 11,860 | (5,781,417) | 56,372 | (202,960) | (1,502,054) | (2,241,318) | 3,833 | 11,814 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | 33,489,182 | - | 2,766,523 | 11,859,082 | 12,199,405 | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 11,860 | $ | 27,707,765 | $ | 56,372 | $ | 2,563,563 | $ | 10,357,028 | $ | 9,958,087 | $ | 3,833 | $ | 11,814 | |||||||||
See Notes to Financial Statements.
| F-35 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| American | Black Rock | Black Rock | BNY Mellon | Delaware | Delaware VIP® | Delaware VIP® | |||||||||||||||||||
| Funds® | Black Rock | Small Cap | Total Return | Mid Cap | Ivy VIP Science | Emerging | Small Cap | ||||||||||||||||||
| IS New World | High Yield V.I. | Index V.I. | V.I. | Stock | and Technology | Markets | Value | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 122 | $ | 1,191 | $ | 1,361 | $ | 11 | $ | 3 | $ | - | $ | 130 | $ | 8 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 20 | 90 | 332 | 2 | 1 | 6 | 61 | 8 | |||||||||||||||||
| Net investment income (loss) | 102 | 1,101 | 1,029 | 9 | 2 | (6) | 69 | - | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (46) | (101) | (165) | (59) | (194) | (888) | (149) | (231) | |||||||||||||||||
| Realized gain distribution | 39 | - | 1,231 | - | 145 | 459 | - | 108 | |||||||||||||||||
| Realized gain (loss) | (7) | (101) | 1,066 | (59) | (49) | (429) | (149) | (123) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | - | (93) | (2,098) | - | - | - | (4,162) | (78) | |||||||||||||||||
| Net gain (loss) on investments | (7) | (194) | (1,032) | (59) | (49) | (429) | (4,311) | (201) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 95 | 907 | (3) | (50) | (47) | (435) | (4,242) | (201) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 1,956 | 10,072 | 90,869 | 1,502 | 1,328 | 5,625 | 21,930 | 10,689 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | - | (7) | (8) | (1,420) | (1,254) | (5,076) | (4,968) | (2,622) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (103) | (280) | (1,450) | (32) | (27) | (114) | (602) | (156) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 9,770 | 30,199 | 32,085 | - | - | - | 54,284 | - | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 11,623 | 39,984 | 121,496 | 50 | 47 | 435 | 70,644 | 7,911 | |||||||||||||||||
| Total increase (decrease) | 11,718 | 40,891 | 121,493 | - | - | - | 66,402 | 7,710 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | - | - | - | - | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 11,718 | $ | 40,891 | $ | 121,493 | $ | - | $ | - | $ | - | $ | 66,402 | $ | 7,710 | |||||||||
See Notes to Financial Statements.
| F-36 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| Fidelity® | |||||||||||||||||||||||||
| DFA | DFA | DFA | DWS | Fidelity® | VIP | Fidelity® | |||||||||||||||||||
| VA International | U.S.Targeted | VIT Inflation- | Small Cap | Fidelity® | VIP | Extended | VIP | ||||||||||||||||||
| Small | value | Protected | Index | Growth | Contrafund® | Market Index | Freedom 2025 | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 1,110 | $ | 797 | $ | 1,387 | $ | 41,475 | $ | 21 | $ | 357,860 | $ | 1,828 | $ | 1,104 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 89 | 134 | 37 | 18,583 | 17 | 330,485 | 224 | 166 | |||||||||||||||||
| Net investment income (loss) | 1,021 | 663 | 1,350 | 22,892 | 4 | 27,375 | 1,604 | 938 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (103) | (21) | (14) | (15,681) | (23) | 2,831,014 | (118) | (95) | |||||||||||||||||
| Realized gain distribution | 756 | 4,719 | - | 780,177 | 387 | 3,384,098 | 2,411 | - | |||||||||||||||||
| Realized gain (loss) | 653 | 4,698 | (14) | 764,496 | 364 | 6,215,112 | 2,293 | (95) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (879) | (5,189) | (2,204) | (1,907,917) | (844) | (30,144,246) | 1,194 | (3,593) | |||||||||||||||||
| Net gain (loss) on investments | (226) | (491) | (2,218) | (1,143,421) | (480) | (23,929,134) | 3,487 | (3,688) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 795 | 172 | (868) | (1,120,529) | (476) | (23,901,759) | 5,091 | (2,750) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 20,603 | 29,266 | 8,158 | 106,752 | 7,856 | 1,666,080 | 6,498 | 90,800 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | (4,805) | - | (314,840) | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | - | - | - | (44,305) | (39) | (1,815,113) | (12) | (272) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | (39,770) | - | (813,068) | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (508) | (770) | (209) | (103,348) | (178) | (2,191,135) | (567) | (1,840) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 21,627 | 31,337 | 9,173 | (138,440) | 10,149 | 18,773 | 143,163 | 8,903 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 41,722 | 59,833 | 17,122 | (223,916) | 17,788 | (3,449,303) | 149,082 | 97,591 | |||||||||||||||||
| Total increase (decrease) | 42,517 | 60,005 | 16,254 | (1,344,445) | 17,312 | (27,351,062) | 154,173 | 94,841 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | - | 5,419,937 | - | 90,757,280 | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 42,517 | $ | 60,005 | $ | 16,254 | $ | 4,075,492 | $ | 17,312 | $ | 63,406,218 | $ | 154,173 | $ | 94,841 | |||||||||
See Notes to Financial Statements.
| F-37 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | Fidelity® | ||||||||||||||||||
| VIP | VIP | VIP | VIP | VIP | VIP | VIP | VIP | ||||||||||||||||||
| Freedom 2030 | Freedom 2035 | Freedom 2040 | Freedom 2045 | Freedom 2050 | Freedom 2055 | Freedom 2060 | Freedom 2065 | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 54 | $ | 565 | $ | 714 | $ | 248 | $ | 152 | $ | 464 | $ | 164 | $ | 6 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 9 | 87 | 89 | 66 | 42 | 59 | 31 | 1 | |||||||||||||||||
| Net investment income (loss) | 45 | 478 | 625 | 182 | 110 | 405 | 133 | 5 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (52) | (285) | (256) | (1,513) | (921) | (353) | (553) | (4) | |||||||||||||||||
| Realized gain distribution | - | 6 | 9 | 3 | 2 | 55 | 58 | 1 | |||||||||||||||||
| Realized gain (loss) | (52) | (279) | (247) | (1,510) | (919) | (298) | (495) | (3) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (163) | (1,626) | 123 | (162) | (144) | (897) | (325) | (15) | |||||||||||||||||
| Net gain (loss) on investments | (215) | (1,905) | (124) | (1,672) | (1,063) | (1,195) | (820) | (18) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (170) | (1,427) | 501 | (1,490) | (953) | (790) | (687) | (13) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 5,324 | 51,210 | 20,238 | 40,842 | 28,359 | 28,720 | 19,778 | 439 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (660) | (666) | (6,714) | (21,008) | (12,652) | (2,899) | (7,210) | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (106) | (1,024) | (745) | (851) | (564) | (631) | (393) | (9) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 116 | 199 | 53,032 | 5,947 | 116 | 11,348 | 690 | 9 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 4,674 | 49,719 | 65,811 | 24,930 | 15,259 | 36,538 | 12,865 | 439 | |||||||||||||||||
| Total increase (decrease) | 4,504 | 48,292 | 66,312 | 23,440 | 14,306 | 35,748 | 12,178 | 426 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | - | - | - | - | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 4,504 | $ | 48,292 | $ | 66,312 | $ | 23,440 | $ | 14,306 | $ | 35,748 | $ | 12,178 | $ | 426 | |||||||||
See Notes to Financial Statements.
| F-38 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| Franklin | Goldman | Goldman | Goldman | ||||||||||||||||||||||
| Fidelity® | Fidelity® | Fidelity® | Fidelity® | Small Cap | Sachs | Sachs | Sachs | ||||||||||||||||||
| VIP | VIP | VIP | VIP | Value | Mid Cap | Small Cap | Strategic | ||||||||||||||||||
| Freedom Income | Index 500 | Index 500 | International Index | VIP | Value | Equity Insights | Growth | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| (Initial Class) | (Service Class) | ||||||||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 26 | $ | - | $ | 4,877 | $ | 1,964 | $ | 40,880 | $ | 1,496 | $ | - | $ | - | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 4 | - | 951 | 173 | 18,168 | 413 | 6 | 24,866 | |||||||||||||||||
| Net investment income (loss) | 22 | - | 3,926 | 1,791 | 22,712 | 1,083 | (6) | (24,866) | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (10) | 7 | (777) | (305) | (178,275) | 27 | (146) | (17,555) | |||||||||||||||||
| Realized gain distribution | - | - | - | - | 771,463 | 32,167 | - | 1,054,770 | |||||||||||||||||
| Realized gain (loss) | (10) | 7 | (777) | (305) | 593,188 | 32,194 | (146) | 1,037,215 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (78) | (2) | (11,237) | (4,678) | (1,105,042) | (18,339) | - | (3,628,060) | |||||||||||||||||
| Net gain (loss) on investments | (88) | 5 | (12,014) | (4,983) | (511,854) | 13,855 | (146) | (2,590,845) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (66) | 5 | (8,088) | (3,192) | (489,142) | 14,938 | (152) | (2,615,711) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 2,198 | - | 361,540 | 96,210 | 195,776 | - | 4,886 | 115,026 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | - | (8,094) | - | - | (40,722) | |||||||||||||||||
| Transfers due to withdrawal of funds | - | (5) | (112) | - | (47,257) | 2 | (4,634) | (67,474) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | (138,969) | - | - | (39,654) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (43) | - | (5,462) | (1,664) | (134,559) | (523) | (100) | (175,125) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 84 | - | 59,344 | - | (283,842) | 195,514 | - | 491,928 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 2,239 | (5) | 415,310 | 94,546 | (416,945) | 194,993 | 152 | 283,979 | |||||||||||||||||
| Total increase (decrease) | 2,173 | - | 407,222 | 91,354 | (906,087) | 209,931 | - | (2,331,732) | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | - | - | 5,020,912 | - | - | 7,767,679 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 2,173 | $ | - | $ | 407,222 | $ | 91,354 | $ | 4,114,825 | $ | 209,931 | $ | - | $ | 5,435,947 | |||||||||
See Notes to Financial Statements.
| F-39 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| Invesco Oppenheimer V.I. International Growth Division |
Invesco
V.I. Capital Appreciation Division |
Invesco V.I. Core Plus Bond Division |
Invesco V.I. Discovery Mid Cap Growth Division |
Invesco
V.I. Diversified Dividend Division |
Invesco V.I. Global Division |
Invesco V.I. Global Strategic Income Division |
Invesco V.I. Health Care Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | - | $ | - | $ | 106,061 | $ | - | $ | 12,340 | $ | - | $ | - | $ | - | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 16,905 | 237,970 | 11,431 | 275,257 | 2,432 | 247,497 | 31,727 | 4,825 | |||||||||||||||||
| Net investment income (loss) | (16,905) | (237,970) | 94,630 | (275,257) | 9,908 | (247,497) | (31,727) | (4,825) | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (175,061) | 984,694 | (16,094) | 2,000,743 | 1,305 | 1,536,357 | (181,084) | 14,724 | |||||||||||||||||
| Realized gain distribution | 787,498 | 17,997,326 | 1,653 | 16,184,734 | 80,959 | 8,792,195 | - | 147,171 | |||||||||||||||||
| Realized gain (loss) | 612,437 | 18,982,020 | (14,441) | 18,185,477 | 82,264 | 10,328,552 | (181,084) | 161,895 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (2,087,115) | (39,461,914) | (513,244) | (42,806,127) | (103,115) | (32,163,882) | (730,627) | (330,410) | |||||||||||||||||
| Net gain (loss) on investments | (1,474,678) | (20,479,894) | (527,685) | (24,620,650) | (20,851) | (21,835,330) | (911,711) | (168,515) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (1,491,583) | (20,717,864) | (433,055) | (24,895,907) | (10,943) | (22,082,827) | (943,438) | (173,340) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 105,217 | 1,540,963 | 121,281 | 1,608,478 | 29,037 | 1,702,593 | 370,517 | 24,776 | |||||||||||||||||
| Transfers due to death benefits | - | (363,046) | (880) | (303,996) | (827) | (329,229) | (13,678) | (847) | |||||||||||||||||
| Transfers due to withdrawal of funds | (87,307) | (977,334) | (17,751) | (1,291,050) | (2,446) | (1,207,345) | (128,319) | (7,641) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (23,259) | (875,706) | (10,833) | (606,117) | (3,497) | (735,247) | (153,061) | (9,192) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (144,289) | (1,746,061) | (101,043) | (1,645,783) | (30,830) | (1,647,369) | (327,470) | (42,613) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | (56,714) | 410,213 | 41,372 | 105,161 | 40,321 | 638,649 | 49,029 | (32,273) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | (206,352) | (2,010,971) | 32,146 | (2,133,307) | 31,758 | (1,577,948) | (202,982) | (67,790) | |||||||||||||||||
| Total increase (decrease) | (1,697,935) | (22,728,835) | (400,909) | (27,029,214) | 20,815 | (23,660,775) | (1,146,420) | (241,130) | |||||||||||||||||
| NET ASSETS, at beginning of the year | 5,445,291 | 67,562,853 | 3,005,336 | 80,082,095 | 625,298 | 69,283,191 | 8,063,814 | 1,300,387 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 3,747,356 | $ | 44,834,018 | $ | 2,604,427 | $ | 53,052,881 | $ | 646,113 | $ | 45,622,416 | $ | 6,917,394 | $ | 1,059,257 | |||||||||
See Notes to Financial Statements.
| F-40 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| Invesco V.I. Main Street Division |
Invesco
V.I. Small Cap Equity Division |
Invesco
V.I. Technology Division |
Janus Henderson Balanced Division |
Janus Henderson Forty Division |
Janus Henderson Global Research Division |
JPMorgan Insurance Trust U.S. Equity Division |
MFS® Blended Research Core Equity Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 227,088 | $ | - | $ | - | $ | 39,877 | $ | 37,008 | $ | 118,310 | $ | 4 | $ | 17 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 69,516 | 153 | 6,496 | 19,309 | 85,033 | 51,202 | 1 | 2 | |||||||||||||||||
| Net investment income (loss) | 157,572 | (153) | (6,496) | 20,568 | (48,025) | 67,108 | 3 | 15 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 138,502 | (250) | 34,424 | 73,972 | 90,923 | 400,155 | (160) | (316) | |||||||||||||||||
| Realized gain distribution | 5,853,249 | 9,700 | 526,741 | 120,744 | 2,956,740 | 1,239,314 | 111 | 263 | |||||||||||||||||
| Realized gain (loss) | 5,991,751 | 9,450 | 561,165 | 194,716 | 3,047,663 | 1,639,469 | (49) | (53) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (9,889,522) | (16,746) | (1,333,057) | (1,019,597) | (11,843,379) | (4,346,218) | - | - | |||||||||||||||||
| Net gain (loss) on investments | (3,897,771) | (7,296) | (771,892) | (824,881) | (8,795,716) | (2,706,749) | (49) | (53) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (3,740,199) | (7,449) | (778,388) | (804,313) | (8,843,741) | (2,639,641) | (46) | (38) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 423,308 | 58,856 | 53,132 | 88,994 | 407,171 | 339,074 | 1,109 | 1,617 | |||||||||||||||||
| Transfers due to death benefits | (201,388) | - | (118) | (32,541) | (5,812) | (33,728) | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (179,814) | - | (23,860) | (25,210) | (444,697) | (109,140) | (1,040) | (1,545) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (318,062) | - | (7,020) | (32,650) | (251,444) | (105,204) | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (427,180) | (1,504) | (82,207) | (125,214) | (515,317) | (266,922) | (23) | (34) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 101,485 | - | 19,916 | 20,831 | 80,032 | 72,989 | - | - | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | (601,651) | 57,352 | (40,157) | (105,790) | (730,067) | (102,931) | 46 | 38 | |||||||||||||||||
| Total increase (decrease) | (4,341,850) | 49,903 | (818,545) | (910,103) | (9,573,808) | (2,742,572) | - | - | |||||||||||||||||
| NET ASSETS, at beginning of the year | 18,399,746 | - | 1,959,176 | 4,769,561 | 26,341,966 | 13,413,815 | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 14,057,896 | $ | 49,903 | $ | 1,140,631 | $ | 3,859,458 | $ | 16,768,158 | $ | 10,671,243 | $ | - | $ | - | |||||||||
See Notes to Financial Statements.
| F-41 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| MFS® Global Real Estate Division |
MFS® International Intrinsic Value Division |
MFS® Investors Trust Division |
MFS® Mid Cap Value Division |
MFS®
New Discovery Division |
MFS®
Value Division |
MML Aggressive Allocation Division |
MML American Funds Growth Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 58 | $ | 111 | $ | 1,517 | $ | 50 | $ | - | $ | 1,932 | $ | 696 | $ | 682 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 9 | 23 | 903 | 11 | 6,049 | 223 | 72 | 74 | |||||||||||||||||
| Net investment income (loss) | 49 | 88 | 614 | 39 | (6,049) | 1,709 | 624 | 608 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (87) | (2) | 11,747 | (31) | 5,137 | (137) | (16) | (66) | |||||||||||||||||
| Realized gain distribution | 253 | 618 | 29,073 | 419 | 385,217 | 8,234 | 4,712 | 35,032 | |||||||||||||||||
| Realized gain (loss) | 166 | 616 | 40,820 | 388 | 390,354 | 8,097 | 4,696 | 34,966 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (697) | (142) | (88,117) | (514) | (888,310) | (6,294) | (4,406) | (36,095) | |||||||||||||||||
| Net gain (loss) on investments | (531) | 474 | (47,297) | (126) | (497,956) | 1,803 | 290 | (1,129) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (482) | 562 | (46,683) | (87) | (504,005) | 3,512 | 914 | (521) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 3,674 | - | 10,786 | 7,049 | 27,828 | 138,136 | - | - | |||||||||||||||||
| Transfers due to death benefits | - | - | (1,025) | - | (138) | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | - | (1) | (8,622) | (22) | (16,429) | (1) | - | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | (3,870) | - | (7,582) | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (86) | (34) | (8,622) | (141) | (34,798) | (1,909) | (81) | (374) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 3,909 | 13,180 | (31,039) | (28) | (24,363) | 27,288 | 31,412 | 142,078 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 7,497 | 13,145 | (42,392) | 6,858 | (55,482) | 163,514 | 31,331 | 141,704 | |||||||||||||||||
| Total increase (decrease) | 7,015 | 13,707 | (89,075) | 6,771 | (559,487) | 167,026 | 32,245 | 141,183 | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | 276,832 | - | 1,713,165 | - | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 7,015 | $ | 13,707 | $ | 187,757 | $ | 6,771 | $ | 1,153,678 | $ | 167,026 | $ | 32,245 | $ | 141,183 | |||||||||
See Notes to Financial Statements.
| F-42 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| MML American Funds International Division |
MML Balanced Allocation Division |
MML
Blend Division |
MML
Blue Chip Growth Division |
MML Conservative Allocation Division |
MML Bond |
MML
Equity Division |
MML Equity | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 2,052 | $ | 3,571 | $ | 251,163 | $ | - | $ | 178 | $ | 156 | $ | 670,494 | $ | 679,700 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 5 | 210 | 80,678 | 23,160 | 10 | 9 | 204,911 | 239,680 | |||||||||||||||||
| Net investment income (loss) | 2,047 | 3,361 | 170,485 | (23,160) | 168 | 147 | 465,583 | 440,020 | |||||||||||||||||
| Net realized and unrealized gain (loss) on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (3,215) | (163) | 17,733 | (23,987) | (2) | (6) | 1,099,635 | 1,952,433 | |||||||||||||||||
| Realized gain distribution | 372 | 6,957 | 336,323 | 977,529 | 376 | - | 4,481,929 | 3,339,913 | |||||||||||||||||
| Realized gain (loss) | (2,843) | 6,794 | 354,056 | 953,542 | 374 | (6) | 5,581,564 | 5,292,346 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | - | (11,828) | (4,126,816) | (3,948,355) | (565) | (305) | (8,353,934) | (17,701,256) | |||||||||||||||||
| Net gain (loss) on investments | (2,843) | (5,034) | (3,772,760) | (2,994,813) | (191) | (311) | (2,772,370) | (12,408,910) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (796) | (1,673) | (3,602,275) | (3,017,973) | (23) | (164) | (2,306,787) | (11,968,890) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 6,816 | 87,462 | 667,192 | 182,251 | - | 4,070 | 1,543,400 | 1,154,865 | |||||||||||||||||
| Transfers due to death benefits | - | - | (327,124) | (53,287) | - | - | (237,930) | (267,907) | |||||||||||||||||
| Transfers due to withdrawal of funds | (6,180) | - | (212,118) | (24,052) | - | - | (962,934) | (2,702,962) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | (88,098) | (61,164) | - | - | (372,428) | (619,173) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (157) | (1,489) | (855,499) | (176,092) | (11) | (105) | (1,762,499) | (1,402,928) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 317 | 7,221 | 37,319 | (162,046) | 4,333 | - | 193,525 | 804,939 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 796 | 93,194 | (778,328) | (294,390) | 4,322 | 3,965 | (1,598,866) | (3,033,166) | |||||||||||||||||
| Total increase (decrease) | - | 91,521 | (4,380,603) | (3,312,363) | 4,299 | 3,801 | (3,905,653) | (15,002,056) | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | 21,565,470 | 7,706,004 | - | - | 45,209,185 | 64,913,639 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | - | $ | 91,521 | $ | 17,184,867 | $ | 4,393,641 | $ | 4,299 | $ | 3,801 | $ | 41,303,532 | $ | 49,911,583 | |||||||||
See Notes to Financial Statements.
| F-43 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| MML Foreign Division |
MML Global Division |
MML Growth Allocation Division |
MML High Yield Division |
MML Income & Growth Division |
MML Inflation- Protected and Income Division |
MML Large Cap Growth Division |
MML Managed Bond Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 1,152 | $ | 247 | $ | 4,099 | $ | 154 | $ | 908 | $ | 39,002 | $ | - | $ | 266,618 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 84 | 16 | 327 | 3 | 137 | 7,151 | 59 | 36,618 | |||||||||||||||||
| Net investment income (loss) | 1,068 | 231 | 3,772 | 151 | 771 | 31,851 | (59) | 230,000 | |||||||||||||||||
| Net realized and unrealized gain (loss)on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (158) | (105) | (192) | (228) | (18) | (10,751) | (149) | (56,634) | |||||||||||||||||
| Realized gain distribution | 2,145 | 11,189 | 16,941 | - | 6,912 | 109,663 | 904 | 89,215 | |||||||||||||||||
| Realized gain (loss) | 1,987 | 11,084 | 16,749 | (228) | 6,894 | 98,912 | 755 | 32,581 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (1,695) | (10,654) | (17,751) | - | (2,900) | (353,028) | (2,142) | (1,751,812) | |||||||||||||||||
| Net gain (loss) on investments | 292 | 430 | (1,002) | (228) | 3,994 | (254,116) | (1,387) | (1,719,231) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 1,360 | 661 | 2,770 | (77) | 4,765 | (222,265) | (1,446) | (1,489,231) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 28,964 | 965 | 670 | 2,137 | - | 111,903 | 12,107 | 305,056 | |||||||||||||||||
| Transfers due to death benefits | - | - | - | - | - | (1,647) | - | (5,578) | |||||||||||||||||
| Transfers due to withdrawal of funds | - | (63) | (623) | (2,015) | - | (9,275) | (52) | (195,346) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | - | - | - | - | - | (16,048) | - | (52,461) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (626) | (66) | (380) | (45) | (154) | (101,219) | (440) | (434,268) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 22,678 | 14,992 | 143,161 | - | 59,034 | 18,125 | 28,430 | 213,513 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 51,016 | 15,828 | 142,828 | 77 | 58,880 | 1,839 | 40,045 | (169,084) | |||||||||||||||||
| Total increase (decrease) | 52,376 | 16,489 | 145,598 | - | 63,645 | (220,426) | 38,599 | (1,658,315) | |||||||||||||||||
| NET ASSETS, at beginning of the year | - | - | - | - | - | 1,598,174 | - | 9,722,049 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 52,376 | $ | 16,489 | $ | 145,598 | $ | - | $ | 63,645 | $ | 1,377,748 | $ | 38,599 | $ | 8,063,734 | |||||||||
See Notes to Financial Statements.
| F-44 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| MML Managed Volatility Division |
MML Mid Cap Growth Division |
MML Moderate Allocation Division |
MML Short Duration Bond Division |
MML
Small Cap Equity Division |
MML
Small Cap Growth Equity Division |
MML Small Mid Cap Value Division |
MML Total Return Bond Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 8,399 | $ | - | $ | 1,249 | $ | 138 | $ | 109,110 | $ | - | $ | 3 | $ | 117 | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 6,347 | 140 | 81 | 9 | 69,531 | 31,789 | 1 | 19 | |||||||||||||||||
| Net investment income (loss) | 2,052 | (140) | 1,168 | 129 | 39,579 | (31,789) | 2 | 98 | |||||||||||||||||
| Net realized and unrealized gain (loss)on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 16,788 | (5,269) | (15) | (3) | 93,786 | (218,775) | (85) | (102) | |||||||||||||||||
| Realized gain distribution | - | 20,133 | 3,424 | - | 1,826,585 | 2,021,936 | 72 | - | |||||||||||||||||
| Realized gain (loss) | 16,788 | 14,864 | 3,409 | (3) | 1,920,371 | 1,803,161 | (13) | (102) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (255,502) | (13,458) | (4,210) | (120) | (4,867,488) | (3,735,253) | - | (429) | |||||||||||||||||
| Net gain (loss) on investments | (238,714) | 1,406 | (801) | (123) | (2,947,117) | (1,932,092) | (13) | (531) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (236,662) | 1,266 | 367 | 6 | (2,907,538) | (1,963,881) | (11) | (433) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 84,613 | 64,902 | 2 | 4,069 | 395,598 | 177,003 | 278 | 9,963 | |||||||||||||||||
| Transfers due to death benefits | (1,666) | - | - | - | (85,970) | (46,413) | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (8,795) | (11,936) | - | - | (303,913) | (82,566) | (261) | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (36,584) | - | - | - | (114,716) | (46,223) | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (80,767) | (862) | (91) | (108) | (423,199) | (189,535) | (6) | (195) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 12,936 | - | 35,745 | - | 4,781 | 382,586 | - | (262) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | (30,263) | 52,104 | 35,656 | 3,961 | (527,419) | 194,852 | 11 | 9,506 | |||||||||||||||||
| Total increase (decrease) | (266,925) | 53,370 | 36,023 | 3,967 | (3,434,957) | (1,769,029) | - | 9,073 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 1,930,357 | - | - | - | 18,003,983 | 8,407,549 | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 1,663,432 | $ | 53,370 | $ | 36,023 | $ | 3,967 | $ | 14,569,026 | $ | 6,638,520 | $ | - | $ | 9,073 | |||||||||
See Notes to Financial Statements.
| F-45 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| MML
U.S. Government Money Market Division |
PIMCO Global Bond Opportunities Division |
PIMCO Real Return Division |
PIMCO Total Return Division |
T.
Rowe Limited - Term Bond Division |
T.
Rowe Price Blue Chip Growth Division |
T.
Rowe Price Equity Income Division |
T. Rowe Price | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 100,889 | $ | 466 | $ | 46 | $ | 211 | $ | 5 | $ | - | $ | 138,853 | $ | - | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 35,273 | 76 | 2 | 21 | 1 | 21,892 | 32,545 | 281,166 | |||||||||||||||||
| Net investment income (loss) | 65,616 | 390 | 44 | 190 | 4 | (21,892) | 106,308 | (281,166) | |||||||||||||||||
| Net realized and unrealized gain (loss)on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | 26 | (87) | - | (2) | (2) | 337,983 | 8,153 | 771,344 | |||||||||||||||||
| Realized gain distribution | - | 333 | - | - | 1 | 213,328 | 376,014 | 1,714,190 | |||||||||||||||||
| Realized gain (loss) | 26 | 246 | - | (2) | (1) | 551,311 | 384,167 | 2,485,534 | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (26) | 16 | (93) | (643) | (9) | (3,071,983) | (803,983) | (19,208,682) | |||||||||||||||||
| Net gain (loss) on investments | - | 262 | (93) | (645) | (10) | (2,520,672) | (419,816) | (16,723,148) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | 65,616 | 652 | (49) | (455) | (6) | (2,542,564) | (313,508) | (17,004,314) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 2,948,416 | 32,673 | - | 2 | 433 | 116,468 | 208,517 | 1,242,474 | |||||||||||||||||
| Transfers due to death benefits | (1,441) | - | - | - | - | (4,899) | (15,544) | (259,141) | |||||||||||||||||
| Transfers due to withdrawal of funds | (515,125) | - | (1) | (1) | - | (65,959) | (75,784) | (1,588,111) | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (99,716) | - | - | - | - | (56,978) | (130,499) | (877,660) | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (646,511) | (869) | (4) | (35) | (10) | (146,365) | (292,864) | (1,759,993) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | (1,614,005) | 39,169 | 1,625 | 14,081 | 32 | (70,031) | 745,086 | 187,862 | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 71,618 | 70,973 | 1,620 | 14,047 | 455 | (227,764) | 438,912 | (3,054,569) | |||||||||||||||||
| Total increase (decrease) | 137,234 | 71,625 | 1,571 | 13,592 | 449 | (2,770,328) | 125,404 | (20,058,883) | |||||||||||||||||
| NET ASSETS, at beginning of the year | 8,229,386 | - | - | - | - | 6,779,214 | 7,109,686 | 74,689,436 | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 8,366,620 | $ | 71,625 | $ | 1,571 | $ | 13,592 | $ | 449 | $ | 4,008,886 | $ | 7,235,090 | $ | 54,630,553 | |||||||||
See Notes to Financial Statements.
| F-46 |
C. M. Life Variable Life Separate Account I
STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS (Continued)
For The Year Ended December 31, 2022
| Templeton Foreign VIP Division |
Templeton Global Bond VIP Division |
Vanguard VIF Balanced Division |
Vanguard VIF Capital Growth Division |
Vanguard VIF Diversified Value Division |
Vanguard VIF Equity Income Division |
Vanguard VIF Real Estate Index Division |
Vanguard VIF Short Term Investment Division | ||||||||||||||||||
| Investment income | |||||||||||||||||||||||||
| Dividends | $ | 113,202 | $ | - | $ | 27 | $ | 467 | $ | - | $ | 1,445 | $ | 38 | $ | - | |||||||||
| Expenses | |||||||||||||||||||||||||
| Mortality and expense risk fees and administrative expense charges | 15,698 | 11 | 30 | 261 | 118 | 571 | 56 | 95 | |||||||||||||||||
| Net investment income (loss) | 97,504 | (11) | (3) | 206 | (118) | 874 | (18) | (95) | |||||||||||||||||
| Net realized and unrealized gain (loss)on investments | |||||||||||||||||||||||||
| Realized gain (loss) on sale of fund shares | (52,403) | (75) | (318) | (351) | (63) | (481) | (129) | (1) | |||||||||||||||||
| Realized gain distribution | - | - | 137 | 5,046 | - | 6,142 | 86 | - | |||||||||||||||||
| Realized gain (loss) | (52,403) | (75) | (181) | 4,695 | (63) | 5,661 | (43) | (1) | |||||||||||||||||
| Change in net unrealized appreciation/depreciation of investments | (362,467) | 105 | (74) | (12,385) | (280) | 1,623 | (2,210) | (77) | |||||||||||||||||
| Net gain (loss) on investments | (414,870) | 30 | (255) | (7,690) | (343) | 7,284 | (2,253) | (78) | |||||||||||||||||
| Net increase (decrease) in net assets resulting from operations | (317,366) | 19 | (258) | (7,484) | (461) | 8,158 | (2,271) | (173) | |||||||||||||||||
| Capital transactions: | |||||||||||||||||||||||||
| Transfers of net premiums | 128,475 | 5,582 | 12,180 | 58,856 | 27,078 | 158,911 | 18,963 | 38,390 | |||||||||||||||||
| Transfers due to death benefits | (22,365) | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to withdrawal of funds | (30,791) | (1,407) | - | - | (8) | 1 | (967) | - | |||||||||||||||||
| Transfers due to policy loans, net of repayments | (71,104) | - | - | - | - | - | - | - | |||||||||||||||||
| Transfers due to charges for administrative and insurance costs | (118,447) | (137) | (241) | (1,502) | (690) | (2,547) | (396) | (263) | |||||||||||||||||
| Transfers between Divisions and to/from General Account | 219,778 | - | (858) | - | 30,295 | - | 5,119 | - | |||||||||||||||||
| Net increase (decrease) in net assets resulting from capital transactions | 105,546 | 4,038 | 11,081 | 57,354 | 56,675 | 156,365 | 22,719 | 38,127 | |||||||||||||||||
| Total increase (decrease) | (211,820) | 4,057 | 10,823 | 49,870 | 56,214 | 164,523 | 20,448 | 37,954 | |||||||||||||||||
| NET ASSETS, at beginning of the year | 4,092,397 | - | - | - | - | - | - | - | |||||||||||||||||
| NET ASSETS, at end of the year | $ | 3,880,577 | $ | 4,057 | $ | 10,823 | $ | 49,870 | $ | 56,214 | $ | 164,523 | $ | 20,448 | $ | 37,954 | |||||||||
See Notes to Financial Statements.
| F-47 |
C. M. Life Variable Life Separate Account I
Notes To Financial Statements
| 1. | ORGANIZATION |
C.M. Life Variable Life Separate Account I (“the Separate Account”) is a separate investment account of C.M. Life Insurance Company (“C.M. Life”) established on February 2, 1995. The Separate Account is registered as a unit investment trust under the Investment Company Act of 1940 (“the 1940 Act”).
C.M. Life was formerly a wholly owned stock life insurance subsidiary of Connecticut Mutual Life Insurance Company (“CML”). On February 29, 1996, CML merged with and into Massachusetts Mutual Life Insurance Company (“MassMutual”). Upon the merger, CML’s existence ceased and MassMutual became the surviving company under the name Massachusetts Mutual Life Insurance Company. C.M. Life became a wholly owned subsidiary of MassMutual.
C.M. Life maintains the following five segments within the Separate Account: C.M. Life Electrum SelectSM, Executive Benefit Variable Universal Life, Survivorship Variable Universal Life, Variable Universal Life and Survivorship Variable Universal Life II.
The assets and liabilities of the Separate Account are clearly identified and distinguished from C.M. Life’s other assets and liabilities. The portion of the Separate Account’s assets applicable to the variable life contracts is not chargeable with liabilities arising from any other C.M. Life business.
| F-48 |
Notes To Financial Statements (Continued)
| 2. | INVESTMENT OF THE SEPARATE ACCOUNT’S ASSETS |
| For the year or period ended December 31, 2023, the Separate Account consists of one hundred and sixty-one divisions that invest in the following mutual funds. All of the divisions may not be available to all of the five segments of the Separate Account: |
| The division listed in the first | |
| Divisions | column invests in the fund in this column |
| American Century VP Capital Appreciation Division | American Century VP Capital Appreciation Fund 1 |
| American Century VP Disciplined Core Value Division | American Century VP Disciplined Core Value Fund 1 |
| American Century VP Inflation Protection Division | American Century VP Inflation Protection Fund 1, 28 |
| American Century VP International Division | American Century VP International Fund 1 |
| American Century VP Value Division | American Century VP Value Fund 1 |
| American Funds Insurance Series® American High Income Bond Division | American Funds Insurance Series® American High Income Bond Trust® 2, 28 |
| American Funds Insurance Series® Asset Allocation Division (Class 1) | American Funds Insurance Series® Asset Allocation Fund (Class 1) 2, 27 |
| American Funds Insurance Series® Asset Allocation Division (Class 2) | American Funds Insurance Series® Asset Allocation Fund (Class 2) 2 |
| American Funds Insurance Series® Capital World Bond Division | American Funds Insurance Series® Capital World Bond Fund® 2, 28 |
| American Funds Insurance Series® Capital World Growth and Income Division | American Funds Insurance Series® Capital World Growth and Income Fund® 2, 27 |
| American Funds Insurance Series® Global Growth Division | American Funds Insurance Series® Global Growth Fund 2 |
| American Funds Insurance Series® Global Small Capitalization Division | American Funds Insurance Series® Global Small Capitalization Fund 2, 28 |
| American Funds Insurance Series® Growth-Income Division (Class 1A) | American Funds Insurance Series® Growth-Income Fund (Class 1A) 2, 28 |
| American Funds Insurance Series® Growth-Income Division (Class 2) | American Funds Insurance Series® Growth-Income Fund (Class 2) 2 |
| American Funds Insurance Series® International Growth and Income Division | American Funds Insurance Series® International Growth and Income Fund 2, 27 |
| American Funds Insurance Series® New World Division | American Funds Insurance Series® New World Fund® 2 |
| American Funds Insurance Series® The Bond Fund of America Division | American Funds Insurance Series® The Bond Fund of America® 2, 28 |
| American Funds Insurance Series® U.S. Government Securities Division | American Funds Insurance Series® U.S. Government Securities Fund 2, 28 |
| American Funds Insurance Series® Washington Mutual Investors Division | American Funds Insurance Series® Washington Mutual Investors FundsSM 2, 27 |
| BlackRock Basic Value V.I. Division | BlackRock Basic Value V.I. Fund 24, 28 |
| BlackRock High Yield V.I. Division | BlackRock High Yield V.I. Fund 24 |
| BlackRock Small Cap Index V.I. Division | BlackRock Small Cap Index V.I. Fund 24 |
| BlackRock Total Return V.I. Division | BlackRock Total Return V.I. Fund 24, 28 |
| BNY Mellon MidCap Stock Division | BNY Mellon MidCap Stock Portfolio 25 |
| Delaware Ivy VIP Asset Strategy Division | Delaware Ivy VIP Asset Strategy 26, 28 |
Delaware Ivy VIP Science and Technology Division |
Delaware Ivy VIP Science and Technology 26 |
| Delaware VIP® Emerging Markets Division | Delaware VIP® Emerging Markets Series 26 |
| Delaware VIP® Small Cap Value Division | Delaware VIP® Small Cap Value Series 26 |
| DFA VA Global Bond Division | DFA VA Global Bond Portfolio 15, 28 |
| DFA VA International Small Division | DFA VA International Small Portfolio 15 |
| DFA VA U.S. Large Value Division | DFA VA U.S. Large Value Portfolio 15, 28 |
| F-49 |
Notes To Financial Statements (Continued)
| DFA VA U.S. Targeted Value Division | DFA VA U.S. Targeted Value Portfolio 15 |
| DFA VIT Inflation-Protected Securities Division | DFA VIT Inflation-Protected Securities Portfolio 15 |
| DWS Small Cap Index Division | DWS Small Cap Index VIP 3 |
| Eaton Vance VT Floating-Rate Income Division | Eaton Vance VT Floating-Rate Income Fund 12, 27 |
| Fidelity® VIP Bond Index Division | Fidelity® VIP Bond Index Portfolio 4, 27 |
| Fidelity® VIP Contrafund® Division | Fidelity® VIP Contrafund® Portfolio 4 |
| Fidelity® VIP Extended Market Index Division | Fidelity® VIP Extended Market Index Portfolio 4 |
| Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2020 Portfolio 4, 27 |
| Fidelity® VIP Freedom 2025 Division | Fidelity® VIP Freedom 2025 Portfolio 4 |
| Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2030 Portfolio 4 |
| Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2035 Portfolio 4 |
| Fidelity® VIP Freedom 2040 Division | Fidelity® VIP Freedom 2040 Portfolio 4 |
| Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2045 Portfolio 4 |
| Fidelity® VIP Freedom 2050 Division | Fidelity® VIP Freedom 2050 Portfolio 4 |
| Fidelity® VIP Freedom 2055 Division | Fidelity® VIP Freedom 2055 Portfolio 4 |
| Fidelity® VIP Freedom 2060 Division | Fidelity® VIP Freedom 2060 Portfolio 4 |
| Fidelity® VIP Freedom 2065 Division | Fidelity® VIP Freedom 2065 Portfolio 4 |
| Fidelity® VIP Freedom Income Division | Fidelity® VIP Freedom Income Portfolio 4 |
| Fidelity® VIP Government Money Market Division | Fidelity® VIP Government Money Market Portfolio 4, 5 |
| Fidelity® VIP Growth Division | Fidelity® VIP Growth Portfolio 4 |
| Fidelity® VIP High Income Division | Fidelity® VIP High Income Portfolio 4, 5 |
| Fidelity® VIP Index 500 Division (Initial Class) | Fidelity® VIP Index 500 Portfolio (Initial Class) 4 |
| Fidelity® VIP Index 500 Division (Service Class) | Fidelity® VIP Index 500 Portfolio (Service Class) 4 |
| Fidelity® VIP International Index Division | Fidelity® VIP International Index Portfolio 4 |
| Fidelity® VIP Overseas Division | Fidelity® VIP Overseas Portfolio 4, 27 |
| Fidelity® VIP Real Estate Division | Fidelity® VIP Real Estate Portfolio 4, 28 |
| Fidelity® VIP Total Market Index Division | Fidelity® VIP Total Market Index Portfolio 4, 28 |
| Franklin Mutual Global Discovery VIP Division | Franklin Mutual Global Discovery VIP Fund 6, 28 |
| Franklin Small Cap Value VIP Division | Franklin Small Cap Value VIP Fund 6 |
| Franklin Strategic Income VIP Division | Franklin Strategic Income VIP Fund 6, 27 |
| Goldman Sachs Core Fixed Income Division | Goldman Sachs Core Fixed Income Fund 7, 27 |
| Goldman Sachs International Equity Insights Division | Goldman Sachs International Equity Insights Fund 7, 27 |
| Goldman Sachs Mid Cap Growth Division 18 | Goldman Sachs Mid Cap Growth Fund 7, 18, 27 |
| Goldman Sachs Mid Cap Value Division | Goldman Sachs Mid Cap Value Fund 7 |
| Goldman Sachs Small Cap Equity Insights Division | Goldman Sachs Small Cap Equity Insights Fund 7, 28 |
| Goldman Sachs Strategic Growth Division | Goldman Sachs Strategic Growth Fund 7 |
| Invesco Oppenheimer V.I. International Growth Division | Invesco Oppenheimer V.I. International Growth Fund 8 |
| Invesco V.I. American Franchise Division | Invesco V.I. American Franchise Fund 8, 28 |
| Invesco V.I. Capital Appreciation Division | Invesco V.I. Capital Appreciation Fund 8 |
| Invesco V.I. Comstock Division | Invesco V.I. Comstock Fund 8, 28 |
| Invesco V.I. Conservative Balanced Division | Invesco V.I. Conservative Balanced Fund 5, 8 |
| Invesco V.I. Core Plus Bond Division | Invesco V.I. Core Plus Bond Fund 8, 19 |
| Invesco V.I. Discovery Mid Cap Growth Division | Invesco V.I. Discovery Mid Cap Growth Fund 5, 8 |
| Invesco V.I. Diversified Dividend Division | Invesco V.I. Diversified Dividend Fund 8 |
| Invesco V.I. EQV International Equity Division21 | Invesco V.I. EQV International Equity Fund 8, 21, 28 |
| F-50 |
Notes To Financial Statements (Continued)
| Invesco V.I. Global Division | Invesco V.I. Global Fund 8 |
| Invesco V.I. Global Real Estate Division | Invesco V.I. Global Real Estate Fund 8, 27 |
| Invesco V.I. Global Strategic Income Division | Invesco V.I. Global Strategic Income Fund 8 |
| Invesco V.I. Health Care Division | Invesco V.I. Health Care Fund 8 |
| Invesco V.I. Main Street Division | Invesco V.I. Main Street Fund® 8 |
| Invesco V.I. Small Cap Equity Division | Invesco V.I. Small Cap Equity Fund 8 |
| Invesco V.I. Technology Division | Invesco V.I. Technology Fund 8 |
| Janus Henderson Balanced Division | Janus Henderson Balanced Portfolio 9 |
| Janus Henderson Forty Division | Janus Henderson Forty Portfolio 9 |
| Janus Henderson Global Research Division | Janus Henderson Global Research Portfolio 9 |
| Lord Abbett Mid Cap Stock Division | Lord Abbett Mid Cap Stock Portfolio 23, 28 |
| MFS® Blended Research® Core Equity Division | MFS® Blended Research® Core Equity Portfolio 10, 28 |
| MFS® Global Real Estate Division | MFS® Global Real Estate Portfolio 10 |
| MFS® Government Securities Division | MFS® Government Securities Portfolio 10, 28 |
| MFS® Growth Series Division | MFS® Growth Series Portfolio 10, 27 |
| MFS® International Intrinsic Value Division | MFS® International Intrinsic Value Portfolio 10 |
| MFS® Investors Trust Division | MFS® Investors Trust Portfolio 10 |
| MFS® Mid Cap Value Division | MFS® Mid Cap Value Portfolio 10 |
| MFS® New Discovery Division | MFS® New Discovery Portfolio 10 |
| MFS® Utilities Division | MFS® Utilities Portfolio 10, 28 |
| MFS® Value Division | MFS® Value Portfolio 10 |
| MML Aggressive Allocation Division | MML Aggressive Allocation Fund 11 |
| MML American Funds Core Allocation Division | MML American Funds Core Allocation Fund 11, 28 |
| MML American Funds Growth Division | MML American Funds Growth Fund 11 |
| MML Balanced Allocation Division | MML Balanced Allocation Fund 11 |
| MML Blend Division | MML Blend Fund 11 |
| MML Blue Chip Growth Division | MML Blue Chip Growth Fund 11 |
| MML Conservative Allocation Division | MML Conservative Allocation Fund 11 |
| MML Dynamic Bond Division | MML Dynamic Bond Fund 11 |
| MML Equity Division | MML Equity Fund 11 |
| MML Equity Income Division | MML Equity Income Fund 11, 27 |
| MML Equity Index Division | MML Equity Index Fund 11 |
| MML Focused Equity Division | MML Focused Equity Fund 11, 27 |
| MML Foreign Division | MML Foreign Fund 11 |
| MML Fundamental Equity Division | MML Fundamental Equity Fund 11, 28 |
| MML Fundamental Value Division | MML Fundamental Value Fund 11, 28 |
| MML Global Division | MML Global Fund 11 |
| MML Growth Allocation Division | MML Growth Allocation Fund 11 |
| MML High Yield Division | MML High Yield Fund 11 |
| MML Income & Growth Division | MML Income & Growth Fund 11 |
| MML Inflation-Protected and Income Division | MML Inflation-Protected and Income Fund 11 |
| MML International Equity Division | MML International Equity Fund 11, 28 |
| MML Large Cap Growth Division | MML Large Cap Growth Fund 11 |
| F-51 |
Notes To Financial Statements (Continued)
| MML Managed Bond Division | MML Managed Bond Fund 11 |
| MML Managed Volatility Division | MML Managed Volatility Fund 11 |
| MML Mid Cap Growth Division | MML Mid Cap Growth Fund 11 |
| MML Mid Cap Value Division | MML Mid Cap Value Fund 11, 27 |
| MML Moderate Allocation Division | MML Moderate Allocation Fund 11 |
| MML Short-Duration Bond Division | MML Short-Duration Bond Fund 11 |
| MML Small Cap Equity Division | MML Small Cap Equity Fund 11 |
| MML Small Cap Growth Equity Division | MML Small Cap Growth Equity Fund 11 |
| MML Small Company Value Division | MML Small Company Value Fund 11, 28 |
| MML Small/Mid Cap Value Division | MML Small/Mid Cap Value Fund 11 |
| MML Strategic Emerging Markets Division | MML Strategic Emerging Markets Fund 11, 27 |
| MML Sustainable Equity Division 22 | MML Sustainable Equity Fund 11, 22, 28 |
| MML Total Return Bond Division | MML Total Return Bond Fund 11 |
| MML U.S. Government Money Market Division | MML U.S. Government Money Market Fund 11 |
| PIMCO All Asset Division | PIMCO All Asset Portfolio 16, 28 |
| PIMCO CommodityRealReturn® Strategy Division | PIMCO CommodityRealReturn® Strategy Portfolio 16, 28 |
| PIMCO Emerging Markets Bond Division | PIMCO Emerging Markets Bond Portfolio 16, 28 |
| PIMCO Global Bond Opportunities Division (Unhedged) | PIMCO Global Bond Opportunities Portfolio (Unhedged) 16 |
| PIMCO High Yield Division | PIMCO High Yield Portfolio 16, 27 |
| PIMCO Long-Term U.S. Government Division | PIMCO Long-Term U.S. Government Portfolio16, 28 |
| PIMCO Real Return Division | PIMCO Real Return Portfolio 16 |
| PIMCO Total Return Division | PIMCO Total Return Portfolio 16 |
| T. Rowe Price Limited-Term Bond Division | T. Rowe Price Limited-Term Bond Fund 13 |
| T. Rowe Price Blue Chip Growth Division | T. Rowe Price Blue Chip Growth Fund 13 |
| T. Rowe Price Equity Income Division | T. Rowe Price Equity Income Fund 13 |
| T. Rowe Price Mid-Cap Growth Division | T. Rowe Price Mid-Cap Growth Fund 13 |
| Templeton Foreign VIP Division | Templeton Foreign VIP Fund 14 |
| Templeton Global Bond VIP Division | Templeton Global Bond VIP Fund 14 |
| TOPS® Aggressive Growth ETF Division | TOPS® Aggressive Growth ETF Portfolio 20, 28 |
| TOPS® Balanced ETF Division | TOPS® Balanced ETF Portfolio 20, 28 |
| TOPS® Conservative ETF Division | TOPS® Conservative ETF Portfolio 20, 28 |
| TOPS® Growth ETF Division | TOPS® Growth ETF Portfolio 20, 28 |
| TOPS® Moderate Growth ETF Division | TOPS® Moderate Growth ETF Portfolio 20, 28 |
| Vanguard VIF Balanced Division | Vanguard VIF Balanced Portfolio 17 |
| Vanguard VIF Capital Growth Division | Vanguard VIF Capital Growth Portfolio 17 |
| Vanguard VIF Diversified Value Division | Vanguard VIF Diversified Value Portfolio 17 |
| Vanguard VIF Equity Income Division | Vanguard VIF Equity Income Portfolio 17 |
| Vanguard VIF Growth Division | Vanguard VIF Growth Portfolio 17, 27 |
| Vanguard VIF High-Yield Bond Division | Vanguard VIF High-Yield Bond Portfolio 17, 28 |
| Vanguard VIF International Division | Vanguard VIF International Portfolio 17, 27 |
| Vanguard VIF Real Estate Index Division | Vanguard VIF Real Estate Index Portfolio 17 |
| Vanguard VIF Short-Term Investment-Grade Division | Vanguard VIF Short-Term Investment-Grade Portfolio 17 |
| F-52 |
Notes To Financial Statements (Continued)
In addition to the one hundred and sixty-one divisions, some policy owners may also allocate funds to the Guaranteed Principal Account (“GPA”), which is part of C.M. Life’s general investment account (“General Account”). Because of exemptive and exclusionary provisions in the securities law, interests in the GPA are not registered under the Securities Act of 1933, and the General Account and the GPA are not registered as an investment company under the 1940 Act.
1 American Century Investment Management, Inc. is the investment adviser to this Fund.
2 Capital Research and Management Company is the investment adviser to this Fund.
3 DWS Investment Management Americas, Inc. is the investment adviser to this Fund.
4 Fidelity Management & Research Company is the investment adviser to this Portfolio.
5 This sub-account/division/portfolio did not have any investment or unit activity from 2019 to 2023.
6 Franklin Mutual Advisers, LLC is the investment adviser to this Fund.
7 Goldman Sachs Asset Management, L.P., a separate business unit of the Investment Management Division of Goldman Sachs & Co., is the investment adviser to this Fund.
8 Invesco Advisers, Inc. is the investment adviser to this Fund.
9 Janus Capital Management LLC is the investment adviser to this Portfolio.
10 Massachusetts Financial Services Company is the investment adviser to this Series.
11 MML Investment Advisers, LLC is the investment advisor to this Fund.
12 Eaton Vance Management is the investment adviser to this Fund.
13 T. Rowe Price Associates, Inc. is the investment adviser to this Portfolio.
14 Templeton Investment Counsel, LLC is the investment adviser to this Fund.
15 DFA Investment Dimensions Group Inc is the investment adviser to this Series.
16 Pacific Investment Management Company LLC is the investment adviser to this Fund.
17 The Vanguard Group, Inc. is the investment adviser to this Fund.
18 Prior to April 29, 2022, known as Goldman Sachs Growth Opportunities Division/Fund.
19 After the close of business on April 29, 2022, Invesco V.I. Core Plus Bond Fund acquired all the net assets of Invesco V.I. Core Bond Fund pursuant to a plan of reorganization approved by the Board of Trustees of the Invesco V.I. Core Plus Bond Fund on December 1, 2021 and by the shareholders of the Invesco V.I. Core Bond Fund on March 31, 2022. The acquisition was accomplished by a tax-free exchange as of the close of business on April 29, 2022. Shares of Invesco V.I. Core Bond Fund were exchanged for the like class of shares of Invesco V.I. Core Plus Bond Fund, based on the relative net asset value of the two funds which resulted in Invesco V.I. Core Bond Fund receiving 1.15816327 shares of Invesco V.I. Core Plus Bond Fund in exchange of 1 share of Invesco V.I Core Bond Fund. As a result of the underlying fund merger, the subaccount name changed from Invesco V.I. Core Bond Fund to Invesco V.I. Core Plus Bond Fund.
20 ValMark Advisers, Inc. is the investment adviser to this Fund.
21 Prior to April 29, 2022, known as Invesco V.I. International Growth Division/Fund.
22 Prior to May 1, 2022, known as MML Growth & Income Division/Fund (Initial Class).
23 Lord, Abbett & Co. LLC is the investment adviser to this Fund.
24 BlackRock Advisors, LLC is the investment adviser to this Fund.
25 BNY Mellon Investment Adviser, Inc. is the investment adviser to this Portfolio.
26 Delaware Management Company is the investment adviser to this Series.
27 This sub-account/division/portfolio did not have any investment or unit activity in 2021 and 2022.
28 This sub-account/division/portfolio did not have any investment or unit activity from 2021 to 2023.
| 3. | SIGNIFICANT ACCOUNTING POLICIES |
| The following is a summary of significant accounting policies followed by the Separate Account in preparation of the financial statements in conformity with generally accepted accounting principles. C.M. Life Variable Life Separate Account I follows the accounting and reporting guidance in FASB Accounting Standards Codification 946. |
| A. | Investment Valuation | |
| Investments in the underlying funds held by each division/sub-account are carried at fair value which is based on the closing net asset value of each of the respective underlying funds, which value their investment securities at fair value. |
| F-53 |
Notes To Financial Statements (Continued)
| B. | Accounting for Investments | |
| Investment transactions are accounted for on a trade-date basis and identified cost is the basis followed in determining the cost of investments sold for financial statement purposes. Dividend income and gains from realized gain distributions are recorded on the ex-distribution date and they are generally reinvested in the underlying investment funds. | ||
| C. | Federal Income Taxes | |
| C.M. Life is taxed under federal law as a life insurance company under the provisions of the 1986 Internal Revenue Code, as amended. Under existing federal law, no taxes are payable on net investment income and net realized capital gains attributable to policies, which depend on the Separate Account’s investment performance. Accordingly, no provision for federal income tax has been made. C.M. Life may, however, make such a charge in the future if an unanticipated change of current law results in a tax liability attributable to the Separate Account. | ||
| D. | Policy Charges | |
| See Note 8B for charges associated with the policies. | ||
| E. | Estimates | |
| The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||
| F. | Policy Loans | |
| When a policy loan is made, the Separate Account transfers the amount of the loan to C.M. Life, thereby decreasing both the investments and the net assets of the Separate Account by an equal amount. The policy owner is charged interest on the outstanding policy loan amount generally equal to either a fixed interest rate of 1% to 8% per year or (in all qualifying jurisdictions) an adjustable loan rate, where applicable. | ||
| As long as a loan is outstanding, a portion of the policy account value equal to the loan is invested in the GPA. The amount of the loan earns interest at a rate equal to the greater of either a fixed interest rate generally equal to 1% to 3% of the loan or the policy loan rate less the loan interest rate expense charge. | ||
| G. | Life Reserves | |
| Life reserves are developed by using accepted actuarial methods and are computed using the 1980 CSO or 2017 CSO mortality table. |
| 4. | FAIR VALUE OF FINANCIAL INSTRUMENTS |
| The Separate Account defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Separate Account generally uses the market approach as the valuation technique due to the nature of the mutual fund investments offered in the Separate Account. This technique maximizes the use of observable inputs and minimizes the use of unobservable inputs. Investments in mutual funds are valued at the mutual fund’s closing net asset value per share on the day of valuation. |
| Valuation Inputs: Various inputs are used to determine the value of the Separate Account’s investments. These inputs are summarized in the three broad levels listed below: |
| • | Level 1 – quoted prices in active markets for identical securities | |
| • | Level 2 – observable inputs other than Level 1 quoted prices (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds and credit risk) | |
| • | Level 3 – unobservable inputs |
| F-54 |
Notes To Financial Statements (Continued)
The investments of the Separate Account are measured at fair value. All the investments are categorized as Level 1 as of December 31, 2023. There have been no transfers between levels for the year ended December 31, 2023.
| 5. | RELATED PARTY TRANSACTIONS |
| A. | Sales Agreements | |
| Pursuant to separate underwriting agreements with C.M. Life, on its own behalf and on behalf of the Separate Account, MML Investors Services, LLC (“MMLIS”) serves as principal underwriter of the policies sold by its registered representatives, and MML Distributors, LLC (“MML Distributors”) and/or MML Strategic Distributors, LLC (“MSD”) serve as principal underwriters of the policies sold by registered representatives of other broker-dealers who have entered into distribution agreements with MML Distributors and/or MSD. | ||
| MMLIS, MML Distributors and MSD are registered with the Securities and Exchange Commission (the “SEC”) as broker-dealers under the Securities Exchange Act of 1934 and are members of the Financial Industry Regulatory Authority (“FINRA”). Commissions for sales of policies by MMLIS registered representatives are paid on behalf of MMLIS to its registered representatives. Commissions for sales of policies by registered representatives of other broker-dealers are paid on behalf of MML Distributors and/or MSD to those broker-dealers. MMLIS, MML Distributors and MSD also receive compensation for their actions as principal underwriters of the policies. | ||
| B. | Receivable from/Payable to C.M. Life | |
| Certain fees such as mortality and expense fees are charges paid between the General Account and the Separate Account. The General Account is not registered as an investment company under the 1940 Act. |
| F-55 |
Notes To Financial Statements (Continued)
| 6. | PURCHASES AND SALES OF INVESTMENTS |
| The cost of purchases and proceeds from sales of investments for each of the years in the two-year period ended December 31, 2023 were as follows: |
American Century VP Capital Appreciation Division |
American Century VP Disciplined Core Value Division |
American Century VP International Division |
American Century VP Value Division |
American Funds Insurance Series® Asset Allocation Division |
American Funds Insurance Series® Asset Allocation Division | American Funds Insurance Series® Capital World Growth and Income Division | American Funds Insurance Series® Global Growth Division | ||||||||||||||||
| 2023 | (Class 1) | (Class 2) | |||||||||||||||||||||
| Cost of purchases | $ | 128,026 | $ | 888,710 | $ | 108,225 | $ | 497,377 | $ | 23,339 | $ | 1,064,913 | $ | 59,009 | $ | 57,075 | |||||||
| Proceeds from sales | (4,654) | (1,613,736) | (23,527) | (214,462) | (653) | (1,194,105) | (1,344) | (22,790) | |||||||||||||||
| American Funds Insurance Series® Growth-Income Division | American Funds Insurance Series® International Growth and Income Division | American Funds Insurance Series® New World Division | American Funds Insurance Series® The Bond Fund of America Division | American Funds Insurance Series® Washington Mutual Investors Division | Black Rock High Yield V.I. Division | Black Rock Small Cap Index V.I. Division | BNY Mellon MidCap Stock Division | ||||||||||||||||
| 2023 (Continued) | (Class 2) | ||||||||||||||||||||||
| Cost of purchases | $ | 984,782 | $ | 33,547 | $ | 4,244 | $ | 23,941 | $ | 13,550 | $ | 63,497 | $ | 130,643 | $ | 82,874 | |||||||
| Proceeds from sales | (819,408) | (990) | (381) | (818) | (2,731) | (12,654) | (20,773) | (3,906) | |||||||||||||||
| Delaware Ivy VIP Science and Technology Division | Delaware VIP® Emerging Markets Division | Delaware VIP® Small Cap Value Division | DFA VA International Small Division | DFA U.S. Targeted Value Division | DFA VIT Inflation- Protected Securities Division | DWS Small Cap Index Division | Eaton Vance VT Floating-Rate Income Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 31,529 | $ | 40,354 | $ | 26,844 | $ | 12,592 | $ | 17,007 | $ | 3,221 | $ | 320,339 | $ | 4,569 | |||||||
| Proceeds from sales | (117) | (3,607) | (2,305) | (2,256) | (3,062) | (2,809) | (351,168) | (651) | |||||||||||||||
| Fidelity® VIP Bond Index Division | Fidelity® VIP Contrafund® Division | Fidelity® VIP Extended Market Index Division | Fidelity® VIP Freedom 2020 Division | Fidelity® VIP Freedom 2025 Division | Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 38,038 | $ | 3,911,683 | $ | 127,866 | $ | 424 | $ | 156,942 | $ | 228,190 | $ | 108,143 | $ | 503,034 | |||||||
| Proceeds from sales | (887) | (5,420,054) | (17,762) | (70) | (26,044) | (58,190) | (24,093) | (51,802) | |||||||||||||||
Fidelity® VIP Freedom 2045 Division |
Fidelity® VIP Freedom 2050 Division | Fidelity® VIP Freedom 2055 Division | Fidelity® VIP Freedom 2060 Division | Fidelity® VIP Freedom 2065 Division | Fidelity® VIP Freedom Income Division | Fidelity® VIP Growth Division | Fidelity® VIP Index 500 Division | ||||||||||||||||
| 2023 (Continued) | (Initial Class) | ||||||||||||||||||||||
| Cost of purchases | $ | 42,132 | $ | 214,508 | $ | 48,693 | $ | 111,091 | $ | 1,490 | $ | 43,793 | $ | 406,704 | $ | - | |||||||
| Proceeds from sales | (8,865) | (24,635) | (5,138) | (28,552) | (64) | (1,427) | (37,140) | (1) | |||||||||||||||
| F-56 |
Notes To Financial Statements (Continued)
| 6. | PURCHASES AND SALES OF INVESTMENTS (Continued) |
| Fidelity® VIP Index 500 Division | Fidelity® VIP International Index Division | Fidelity® VIP Overseas Division | Franklin Small Cap Value VIP Division | Franklin Strategic Income VIP Division | Goldman Sachs Core Fixed Income Division | Goldman Sachs International Equity Insights Division | Goldman Sachs Mid Cap Growth Division | ||||||||||||||||
| 2023 (Continued) | (Service Class) | ||||||||||||||||||||||
| Cost of purchases | $ | 832,210 | $ | 131,865 | $ | 101,372 | $ | 547,572 | $ | 13,566 | $ | 409 | $ | 44,854 | $ | 4,903 | |||||||
| Proceeds from sales | (52,692) | (2,990) | (468) | (552,633) | (13,442) | (6) | (442) | (129) | |||||||||||||||
| Goldman Sachs Mid Cap Value Division | Goldman Sachs Strategic Growth Division | Invesco Oppenheimer V.I. International Growth Division | Invesco V.I. Capital Appreciation Division | Invesco V.I. Core Plus Bond Division | Invesco V.I. Discovery Mid Cap Growth Division | Invesco V.I. Diversified Dividend Division | Invesco V.I. Global Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 155,225 | $ | 650,802 | $ | 176,051 | $ | 799,434 | $ | 266,057 | $ | 710,836 | $ | 150,528 | $ | 6,731,646 | |||||||
| Proceeds from sales | (16,944) | (814,003) | (582,513) | (2,621,208) | (170,760) | (6,125,498) | (47,931) | (4,162,393) | |||||||||||||||
| Invesco V.I. Global Real Estate Division | Invesco V.I. Global Strategic Income Division | Invesco V.I. Health Care Division | Invesco V.I. Main Street Division | Invesco V.I. Small Cap Equity Division | Invesco V.I. Technology Division | Janus Henderson Balanced Division | Janus Henderson Forty Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 10,602 | $ | 291,079 | $ | 97,911 | $ | 1,446,588 | $ | 60,656 | $ | 199,785 | $ | 212,307 | $ | 439,577 | |||||||
| Proceeds from sales | (197) | (500,629) | (120,603) | (944,814) | (2,224) | (141,408) | (272,050) | (1,392,619) | |||||||||||||||
| Janus Henderson Global Research Division | MFS® Global Real Estate Division | MFS® Growth Series Division | Franklin MFS® International Intrinsic Value Division | MFS® Investors Trust Division | MFS® Mid Cap Value Division | MFS® New Discovery Division | MFS® Value Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 1,038,791 | $ | 5,653 | $ | 29,843 | $ | 52,241 | $ | 21,659 | $ | 175,822 | $ | 52,124 | $ | 454,242 | |||||||
| Proceeds from sales | (609,758) | (909) | (15,883) | (445) | (30,813) | (20,980) | (53,289) | (6,762) | |||||||||||||||
| MML Aggressive Allocation Division | MML American Funds Growth Division | MML Balanced Allocation Division | MML Blend Division | MML Blue Chip Growth Division | MML Conservative Allocation Division | MML Dynamic Bond Division | MML Equity Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 55,727 | $ | 186,293 | $ | 3,752 | $ | 913,882 | $ | 128,560 | $ | 25,339 | $ | 4,407 | $ | 4,702,366 | |||||||
| Proceeds from sales | (2,619) | (47,865) | (88,234) | (1,261,778) | (254,610) | (7,804) | (253) | (3,334,791) | |||||||||||||||
| F-57 |
Notes To Financial Statements (Continued)
| 6. | PURCHASES AND SALES OF INVESTMENTS (Continued) |
| MML Equity Income Division | MML Equity Index Division | MML Focused Equity Division | MML Foreign Division | MML Global Division | MML Growth Allocation Division | MML Income & Growth Division | Inflation- Protected and Income Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 92,657 | $ | 6,665,659 | $ | 67,788 | $ | 30,486 | $ | 10,587 | $ | 106,157 | $ | 30,873 | $ | 285,851 | |||||||
| Proceeds from sales | (1,827) | (4,102,540) | (6,500) | (2,471) | (11,233) | (16,600) | (23,589) | (144,067) | |||||||||||||||
| MML Large Cap Growth Division | MML Managed Bond Division | MML Managed Volatility Division | MML Mid Cap Growth Division | MML Mid Cap Value Division | MML Moderate Allocation Division | MML Short- Duration Bond Division | MML Small Cap Equity Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 28,708 | $ | 971,599 | $ | 379,021 | $ | 116,174 | $ | 100,183 | $ | 24,236 | $ | 16,726 | $ | 705,193 | |||||||
| Proceeds from sales | (1,153) | (834,268) | (139,334) | (9,822) | (1,813) | (6,541) | (281) | (810,162) | |||||||||||||||
| MML Small Cap Growth Equity Division | MML Strategic Emerging Markets Division | MML Total Return Bond Division | MML U.S. Government Money Market Division | PIMCO Global Bond Opportunities Division | PIMCO High Yield Division | PIMCO Real Return Division | PIMCO Total Return Division | ||||||||||||||||
| 2023 (Continued) | (Unhedged) | ||||||||||||||||||||||
| Cost of purchases | $ | 544,392 | $ | 13,157 | $ | 22,711 | $ | 12,177,962 | $ | 10,289 | $ | 51,832 | $ | 3,039 | $ | 10,762 | |||||||
| Proceeds from sales | (466,938) | (410) | (405) | (7,075,200) | (10,714) | (1,601) | (165) | (599) | |||||||||||||||
| T. Rowe Price Blue Chip Growth Division | T. Rowe Price Equity Income Division | T. Rowe Price Limited-Term Bond Division | T. Rowe Price Mid-Cap Growth Division | Templeton Foreign VIP Division | Templeton Global Bond VIP Division | Vanguard VIF Balanced Division | Vanguard VIF Capital Growth Division | ||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 153,138 | $ | 778,048 | $ | 6,487 | $ | 4,399,051 | $ | 448,940 | $ | 4,069 | $ | 70,244 | $ | 65,392 | |||||||
| Proceeds from sales | (279,143) | (869,035) | (5,994) | (4,774,869) | (311,354) | (258) | (1,571) | (2,578) | |||||||||||||||
| Vanguard VIF | Vanguard VIF | ||||||||||||||||||||||
| Vanguard VIF | Vanguard VIF | Vanguard VIF | Vanguard VIF | Real Estate | Short-Term | ||||||||||||||||||
| Diversified Value | Equity Income | Growth | International | Index | Investment-Grade | ||||||||||||||||||
| Division | Division | Division | Division | Division | Division | ||||||||||||||||||
| 2023 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 34,699 | $ | 289,718 | $ | 9,743 | $ | 111,409 | $ | 19,254 | $ | 39,195 | |||||||||||
| Proceeds from sales | (6,382) | (122,347) | (46) | (2,377) | (5,777) | (755) | |||||||||||||||||
| F-58 |
Notes To Financial Statements (Continued)
| 6. | PURCHASES AND SALES OF INVESTMENTS (Continued) |
| American Century VP Capital Appreciation Division | American Century VP Disciplined Core Value Division | American Century VP International Division | American Century VP Value Division | American Funds® Asset Allocation Division | American Funds® Growth-Income Division | American Funds® IS Bond Division | American Funds® IS Global Growth-Income Division | ||||||||||||||||
| 2022 | |||||||||||||||||||||||
| Cost of purchases | $ | 13,290 | $ | 8,214,849 | $ | 57,350 | $ | 460,908 | $ | 1,994,971 | $ | 1,451,139 | $ | 4,152 | $ | 12,531 | |||||||
| Proceeds from sales | (1,093) | (2,042,235) | (519) | (425,757) | (630,333) | (508,428) | (93) | (397) | |||||||||||||||
| American Funds® IS New World Division | Black Rock High Yield V.I. Division | Black Rock Small Cap Index V.I. Division | Black Rock Total Return V.I. Division | BNY Mellon Mid Cap Stock Division | Delaware Ivy VIP Science and Technology Division | Delaware VIP® Emerging Markets Division | Delaware VIP® Small Cap Value Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 11,963 | $ | 42,392 | $ | 126,605 | $ | 1,505 | $ | 1,468 | $ | 6,051 | $ | 71,416 | $ | 10,759 | |||||||
| Proceeds from sales | (197) | (1,527) | (2,848) | (1,445) | (1,274) | (5,163) | (703) | (2,741) | |||||||||||||||
| DFA VA International Small Division | DFA U.S.Targeted value Division | DFA VIT Inflation- Protected Division | DWS Small Cap Index Division | Fidelity® Growth Division | Fidelity® VIP Contrafund® Division | Fidelity® VIP Extended Market Index Division | Fidelity® VIP Freedom 2025 Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 44,419 | $ | 66,120 | $ | 18,718 | $ | 908,034 | $ | 19,536 | $ | 4,531,078 | $ | 154,612 | $ | 100,137 | |||||||
| Proceeds from sales | (920) | (904) | (246) | (328,868) | (1,357) | (4,568,850) | (1,516) | (1,608) | |||||||||||||||
| Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | Fidelity® VIP Freedom 2055 Division | Fidelity® VIP Freedom 2060 Division | Fidelity® VIP Freedom 2065 Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 5,499 | $ | 55,648 | $ | 81,616 | $ | 46,395 | $ | 29,586 | $ | 40,707 | $ | 19,988 | $ | 476 | |||||||
| Proceeds from sales | (778) | (5,445) | (15,171) | (21,279) | (14,214) | (3,709) | (6,932) | (31) | |||||||||||||||
| Fidelity® VIP Freedom Income Division | Fidelity® VIP Index 500 Division | Fidelity® VIP Index 500 Division | Fidelity® VIP International Index Division | Franklin Small Cap Value VIP Division | Goldman Sachs Mid Cap Value Division | Goldman Sachs Small Cap Equity Insights Division | Goldman Sachs Strategic Growth Division | ||||||||||||||||
| 2022 (Continued) | (Initial Class) | (Service Class) | |||||||||||||||||||||
| Cost of purchases | $ | 2,403 | $ | 1 | $ | 425,579 | $ | 97,957 | $ | 1,210,892 | $ | 229,178 | $ | 4,857 | $ | 1,612,541 | |||||||
| Proceeds from sales | (141) | - | (6,341) | (1,621) | (833,648) | (936) | (4,711) | (298,665) | |||||||||||||||
| F-59 |
Notes To Financial Statements (Continued)
| 6. | PURCHASES AND SALES OF INVESTMENTS (Continued) |
| Invesco Oppenheimer V.I. International Growth Division | Invesco V.I. Capital Appreciation Division | Invesco V.I. Core Plus Bond Division | Invesco V.I. Discovery Mid Cap Growth Division | Invesco V.I. Diversified Dividend Division | Invesco V.I. Global Division | Invesco V.I. Global Strategic Income Division | Invesco V.I. Health Care Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 1,185,427 | $ | 19,040,640 | $ | 224,567 | $ | 17,038,636 | $ | 158,148 | $ | 9,867,116 | $ | 308,356 | $ | 193,108 | |||||||
| Proceeds from sales | (621,183) | (3,292,255) | (96,135) | (3,262,502) | (35,536) | (2,900,406) | (543,085) | (118,554) | |||||||||||||||
| Invesco V.I. Main Street Division | Invesco V.I. Small Cap Equity Division | Invesco V.I. Technology Division | Janus Henderson Balanced Division | Janus Henderson Forty Division | Janus Henderson Global Research Division | JPMorgan Insurance Trust U.S. Equity Division | MFS® Blended Research Core Equity Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 6,518,316 | $ | 68,418 | $ | 610,359 | $ | 311,999 | $ | 3,328,264 | $ | 1,842,585 | $ | 1,217 | $ | 1,888 | |||||||
| Proceeds from sales | (1,109,163) | (1,519) | (130,276) | (276,469) | (1,149,602) | (639,112) | (1,057) | (1,572) | |||||||||||||||
| MFS® Global Real Estate Division | MFS® International Intrinsic Value Division | MFS® Investors Trust Division | MFS® Mid Cap Value Division | MFS® New Discovery Division | MFS® Value Division | MML Aggressive Allocation Division | MML American Funds Growth Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 8,182 | $ | 13,908 | $ | 73,087 | $ | 8,214 | $ | 429,635 | $ | 175,080 | $ | 36,820 | $ | 177,792 | |||||||
| Proceeds from sales | (384) | (57) | (85,798) | (898) | (105,959) | (1,623) | (153) | (448) | |||||||||||||||
| MML American Funds International Division | MML Balanced Allocation Division | MML Blend Division | MML Blue Chip Growth Division | MML Conservative Allocation Division | MML Dynamic Bond Division | MML Equity Division | MML Equity Index Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 18,587 | $ | 105,012 | $ | 941,348 | $ | 1,138,741 | $ | 4,887 | $ | 4,206 | $ | 6,175,506 | $ | 5,622,994 | |||||||
| Proceeds from sales | (15,372) | (1,501) | (1,212,852) | (478,772) | (21) | (94) | (2,826,854) | (4,876,261) | |||||||||||||||
| MML Foreign Division | MML Global Division | MML Growth Allocation Division | MML High Yield Division | MML Income & Growth Division | MML Inflation- Protected and Income Division | MML Large Cap Growth Division | MML Managed Bond Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 54,894 | $ | 28,572 | $ | 164,867 | $ | 2,279 | $ | 66,854 | $ | 382,937 | $ | 41,758 | $ | 722,222 | |||||||
| Proceeds from sales | (665) | (1,324) | (1,326) | (2,050) | (290) | (239,601) | (870) | (572,100) | |||||||||||||||
| F-60 |
Notes To Financial Statements (Continued)
| 6. | PURCHASES AND SALES OF INVESTMENTS (Continued) |
| MML Managed Volatility Division | MML Mid Cap Growth Division | MML Moderate Allocation Division | Short Duration Bond Division | MML Small Cap Equity Division | MML Small Cap Growth Equity Division | MML Small Mid Cap Value Division | MML Total Return Bond Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 92,056 | $ | 84,840 | $ | 40,419 | $ | 4,188 | $ | 2,386,008 | $ | 2,562,295 | $ | 351 | $ | 11,013 | |||||||
| Proceeds from sales | (120,242) | (12,742) | (172) | (97) | (1,047,259) | (377,301) | (267) | (1,410) | |||||||||||||||
| MML U.S. Government Money Market Division | PIMCO Global Bond Opportunities Division | PIMCO Real Return Division | PIMCO Total Return Division | T. Rowe Limited - Term Bond Division | T. Rowe Price Blue Chip Growth Division | T. Rowe Price Equity Income Division | T. Rowe Price Mid-Cap Growth Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 3,697,036 | $ | 72,640 | $ | 1,670 | $ | 14,293 | $ | 509 | $ | 553,345 | $ | 1,921,959 | $ | 2,268,068 | |||||||
| Proceeds from sales | (3,560,008) | (946) | (6) | (56) | (50) | (589,659) | (1,000,721) | (3,889,592) | |||||||||||||||
| Templeton Foreign VIP Division | Templeton Global Bond VIP Division | Vanguard VIF Balanced Division | Vanguard VIF Capital Growth Division | Vanguard VIF Diversified Value Division | Vanguard VIF Equity Income Division | Vanguard VIF Real Estate Index Division | Vanguard VIF Short Term Investment Division | ||||||||||||||||
| 2022 (Continued) | |||||||||||||||||||||||
| Cost of purchases | $ | 442,608 | $ | 5,554 | $ | 13,369 | $ | 64,231 | $ | 57,688 | $ | 166,105 | $ | 23,678 | $ | 38,286 | |||||||
| Proceeds from sales | (239,555) | (1,527) | (2,153) | (1,625) | (1,132) | (2,725) | (890) | (255) | |||||||||||||||
| F-61 |
Notes To Financial Statements (Continued)
| 7. | NET INCREASE (DECREASE) IN OUTSTANDING UNITS |
The changes in outstanding units for each of the years in the two-year period ended December 31, 2023 were as follows:
| 2023 | American Century VP Capital Appreciation Division |
American Century VP Disciplined Core Value Division |
American Century VP International Division |
American Century VP Value Division |
American Funds Insurance Series® Asset Allocation Division |
American Funds Insurance Series® Asset Allocation Division |
American Funds Insurance Series® Capital World Growth and Income Division |
American Funds Insurance Series® Global Growth Division |
|||||||||||||||
| (Class 1) | (Class 2) | ||||||||||||||||||||||
| Units purchased | 19,905 | 299,781 | 123,768 | 24,799 | - | 103,373 | 132 | 16,057 | |||||||||||||||
| Units withdrawn | (3,548) | (575,800) | (2,712) | (36,069) | (588) | (310,879) | (1,575) | (1,179) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 139,400 | (12,573) | (22,085) | 15,319 | 23,799 | 32,607 | 64,326 | 23,540 | |||||||||||||||
| Net increase (decrease) | 155,757 | (288,592) | 98,971 | 4,049 | 23,211 | (174,899) | 62,883 | 38,418 | |||||||||||||||
| 2023 (Continued) | American Funds Insurance Series® Growth-Income Division |
American Funds Insurance Series® International Growth and Income Division |
American Funds Insurance Series® New World Division |
American Funds Insurance Series® The Bond Fund of America Division |
American Funds Insurance Series® Washington Mutual Investors Division |
Black Rock High Yield V.I. Division |
Black Rock Small Cap Index V.I. Division |
BNY Mellon MidCap Stock Division |
|||||||||||||||
| (Class 2) | |||||||||||||||||||||||
| Units purchased | 54,540 | 7,891 | 2,925 | 10,909 | 27 | 13,732 | 108,766 | 5,190 | |||||||||||||||
| Units withdrawn | (144,831) | (781) | (416) | (798) | (323) | (1,079) | (5,648) | (2,033) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | (1,867) | 26,325 | 1,656 | 14,972 | 11,157 | 35,426 | 7,951 | 76,408 | |||||||||||||||
| Net increase (decrease) | (92,158) | 33,435 | 4,165 | 25,083 | 10,861 | 48,079 | 111,069 | 79,565 | |||||||||||||||
| 2023 (Continued) | Delaware Ivy VIP Science and Technology Division |
Delaware VIP® Emerging Markets Division |
Delaware VIP® Small Cap Value Division |
DFA VA
International Small Division |
DFA U.S. Targeted Value Division |
DFA VIT
Inflation- Protected Securities Division |
DWS Small
Cap Index Division |
Eaton Vance VT Floating-Rate Income Division |
|||||||||||||||
| Units purchased | 8,305 | 4,936 | 24,530 | 3,175 | 1,533 | 406 | 31,457 | 1,293 | |||||||||||||||
| Units withdrawn | (133) | (2,312) | (491) | (1,948) | (2,310) | (627) | (92,459) | (58) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 26,486 | 41,414 | 966 | 8,283 | 8,144 | (61) | 22,516 | 2,411 | |||||||||||||||
| Net increase (decrease) | 34,658 | 44,038 | 25,005 | 9,510 | 7,367 | (282) | (38,486) | 3,646 | |||||||||||||||
| 2023 (Continued) | Fidelity® VIP Bond Index Division |
Fidelity® VIP Contrafund® Division |
Fidelity® VIP Extended Market Index Division |
Fidelity® VIP Freedom 2020 Division |
Fidelity® VIP Freedom 2025 Division |
Fidelity® VIP Freedom 2030 Division |
Fidelity® VIP Freedom 2035 Division |
Fidelity® VIP Freedom 2040 Division |
|||||||||||||||
| Units purchased | 5,826 | 336,137 | 14,710 | 187 | 142,932 | 29,866 | 69,432 | 132,199 | |||||||||||||||
| Units withdrawn | (918) | (980,742) | (2,933) | (7) | (4,427) | (3,260) | (2,795) | (7,894) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 36,298 | 27,392 | 101,182 | 215 | 2,902 | 158,395 | 24,783 | 359,368 | |||||||||||||||
| Net increase (decrease) | 41,206 | (617,213) | 112,959 | 395 | 141,407 | 185,001 | 91,420 | 483,673 | |||||||||||||||
| F-62 |
Notes To Financial Statements (Continued)
7. NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)
| 2023 (Continued) | Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | Fidelity® VIP Freedom 2055 Division | Fidelity® VIP Freedom 2060 Division | Fidelity® VIP Freedom 2065 Division | Fidelity® VIP Freedom Income Division | Fidelity® VIP Growth Division | Fidelity® VIP Index 500 Division | |||||||||||||||
| (Initial Class) | |||||||||||||||||||||||
| Units purchased | 37,089 | 69,971 | 34,399 | 31,594 | 555 | 15,362 | 148,544 | - | |||||||||||||||
| Units withdrawn | (1,043) | (2,929) | (1,577) | (1,502) | (43) | (1,084) | (12,202) | - | |||||||||||||||
| Units transferred between Divisions and to/from General Account | (738) | 137,898 | 13,518 | 60,130 | 1,030 | 30,798 | 276,347 | - | |||||||||||||||
| Net increase (decrease) | 35,308 | 204,940 | 46,340 | 90,222 | 1,542 | 45,076 | 412,689 | - | |||||||||||||||
| 2023 (Continued) | Fidelity® VIP Index 500 Division | Fidelity® VIP International Index Division | Fidelity® VIP Overseas Division | Franklin Small Cap Value VIP Division | Franklin Strategic Income VIP Division | Goldman Sachs Core Fixed Income Division | Goldman Sachs International Equity Insights Division | Goldman Sachs Mid Cap Growth Division | |||||||||||||||
| (Service Class) | |||||||||||||||||||||||
| Units purchased | 559,862 | 116,786 | 85 | 55,814 | 9,791 | 174 | 9,618 | 10 | |||||||||||||||
| Units withdrawn | (22,457) | (4,315) | (626) | (49,572) | (581) | (7) | (414) | (167) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 267,307 | 21,860 | 113,025 | 39,465 | (9,210) | 285 | 35,687 | 6,137 | |||||||||||||||
| Net increase (decrease) | 804,712 | 134,331 | 112,484 | 45,707 | - | 452 | 44,891 | 5,980 | |||||||||||||||
| 2023 (Continued) | Goldman Sachs Mid Cap Value Division | Goldman Sachs Strategic Growth Division | Invesco Oppenheimer V.I. International Growth Division | Invesco V.I. Capital Appreciation Division | Invesco V.I. Core Plus Bond Division | Invesco V.I. Discovery Mid Cap Growth Division | Invesco V.I. Diversified Dividend Division | Invesco V.I. Global Division | |||||||||||||||
| Units purchased | 5,298 | 65,924 | 46,736 | 443,757 | 93,331 | 519,615 | 24,405 | 331,032 | |||||||||||||||
| Units withdrawn | (2,730) | (83,597) | (139,850) | (783,154) | (138,982) | (1,086,717) | (21,181) | (722,402) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 123,651 | (80,496) | (54,846) | (23,615) | 68,854 | (588,044) | 22,509 | (128,903) | |||||||||||||||
| Net increase (decrease) | 126,219 | (98,169) | (147,960) | (363,012) | 23,203 | (1,155,146) | 25,733 | (520,273) | |||||||||||||||
| 2023 (Continued) | Invesco V.I. Global Real Estate Division | Invesco V.I. Global Strategic Income Division | Invesco V.I. Health Care Division | Invesco V.I. Main Street Division | Invesco V.I. Small Cap Equity Division | Invesco V.I. Technology Division | Janus Henderson Balanced Division | Janus Henderson Forty Division | |||||||||||||||
| Units purchased | 23 | 184,048 | 6,704 | 154,023 | 70,795 | 31,617 | 22,559 | 116,555 | |||||||||||||||
| Units withdrawn | (276) | (210,072) | (17,310) | (317,571) | (2,805) | (43,134) | (51,319) | (273,709) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 12,774 | (48,318) | 6,989 | (13,460) | 217 | 39,942 | 2,536 | (34,847) | |||||||||||||||
| Net increase (decrease) | 12,521 | (74,342) | (3,617) | (177,008) | 68,207 | 28,425 | (26,224) | (192,001) | |||||||||||||||
| F-63 |
Notes To Financial Statements (Continued)
| 7. | NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued) |
| 2023 (Continued) | Janus Henderson Global Research Division | MFS® Global Real Estate Division | MFS® Growth Series Division | MFS® International Intrinsic Value Division | MFS® Investors Trust Division | MFS® Mid Cap Value Division | MFS® New Discovery Division | MFS® Value Division | |||||||||||||||
| Units purchased | 261,985 | 2,512 | 13,147 | 83 | 1,020 | 41,618 | 6,346 | 413,517 | |||||||||||||||
| Units withdrawn | (418,444) | (405) | (492) | (541) | (3,303) | (4,223) | (10,659) | (8,653) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 180,513 | 2,877 | 4,329 | 55,524 | (1,454) | 112,249 | 5,132 | 10,477 | |||||||||||||||
| Net increase (decrease) | 24,054 | 4,984 | 16,984 | 55,066 | (3,737) | 149,644 | 819 | 415,341 | |||||||||||||||
| 2023 (Continued) | MML Aggressive Allocation Division | MML American Funds Growth Division | MML Balanced Allocation Division | MML Blend Division | MML Blue Chip Growth Division | MML Conservative Allocation Division | MML Dynamic Bond Division | MML Equity Division | |||||||||||||||
| Units purchased | 69 | 1,006 | 47 | 238,169 | 89,396 | 13 | 4,554 | 589,435 | |||||||||||||||
| Units withdrawn | (532) | (2,625) | (837) | (451,788) | (129,886) | (141) | (296) | (1,319,548) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 47,991 | 116,780 | (96,774) | 45,618 | 2,783 | 18,003 | - | (48,763) | |||||||||||||||
| Net increase (decrease) | 47,528 | 115,161 | (97,564) | (168,001) | (37,707) | 17,875 | 4,258 | (778,876) | |||||||||||||||
| 2023 (Continued) | MML Equity Income Division | MML Focused Index Division | MML Focused Equity Division | MML Foreign Division | MML Global Division | MML Growth Allocation Division | MML Income & Growth Division | Inflation- Protected and Income Division | |||||||||||||||
| Units purchased | 96 | 309,553 | 77 | 24,996 | 82 | 235 | 79 | 71,557 | |||||||||||||||
| Units withdrawn | (1,916) | (1,011,631) | (1,530) | (2,324) | (235) | (1,798) | (604) | (90,469) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 81,898 | 23,294 | 58,026 | 5,201 | (2,440) | 67,617 | (1,250) | 62,701 | |||||||||||||||
| Net increase (decrease) | 80,078 | (678,784) | 56,573 | 27,873 | (2,593) | 66,054 | (1,775) | 43,789 | |||||||||||||||
| 2023 (Continued) | MML Large Cap Growth Division | MML Managed Bond Division | MML Managed Volatility Division | MML Mid Cap Growth Division | MML Mid Cap Value Division | MML Moderate Allocation Division | MML Short- Duration Bond Division | MML Small Cap Equity Division | |||||||||||||||
| Units purchased | 17,211 | 183,569 | 34,943 | 64,825 | 94 | 57 | 4,299 | 95,157 | |||||||||||||||
| Units withdrawn | (1,614) | (330,398) | (61,482) | (3,655) | (1,870) | (433) | (299) | (158,308) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 9,160 | 172,811 | (9,775) | 57,683 | 81,480 | 13,662 | 12,667 | 57,709 | |||||||||||||||
| Net increase (decrease) | 24,757 | 25,982 | (36,314) | 118,853 | 79,704 | 13,286 | 16,667 | (5,442) | |||||||||||||||
| F-64 |
Notes To Financial Statements (Continued)
7. NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)
| 2023 (Continued) | MML Small Cap Growth Equity Division | MML Strategic Emerging Markets Division | MML Total Return Bond Division | MML U.S. Government Money Market Division | PIMCO Global Bond Opportunities Division | PIMCO High Yield Division | PIMCO Real Return Division | PIMCO Total Return Division | |||||||||||||||
| (Unhedged) | |||||||||||||||||||||||
| Units purchased | 101,811 | 4,798 | 13,923 | 7,449,567 | 1,943 | 52,605 | 7 | 223 | |||||||||||||||
| Units withdrawn | (126,119) | (373) | (574) | (2,568,815) | (2,655) | (1,219) | (25) | (196) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 292,169 | 11,113 | 11,830 | (560,722) | (2,308) | - | 3,102 | 10,642 | |||||||||||||||
| Net increase (decrease) | 267,861 | 15,538 | 25,179 | 4,320,030 | (3,020) | 51,386 | 3,084 | 10,669 | |||||||||||||||
| 2023 (Continued) | T. Rowe Price Blue Chip Growth Division | T. Rowe Price Equity Income Division | T. Rowe Price Limited-Term Bond Division | T. Rowe Price Mid-Cap Growth Division | Templeton Foreign VIP Division | Templeton Global Bond VIP Division | Vanguard VIF Balanced Division | Vanguard VIF Capital Growth Division | |||||||||||||||
| Units purchased | 14,457 | 65,327 | 2,451 | 199,283 | 102,507 | 4,203 | 58,247 | 66,140 | |||||||||||||||
| Units withdrawn | (32,238) | (160,545) | (206) | (556,981) | (152,203) | (282) | (1,819) | (2,639) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 3,341 | (17,807) | (1,750) | (56,417) | 59,647 | - | 15,949 | - | |||||||||||||||
| Net increase (decrease) | (14,440) | (113,025) | 495 | (414,115) | 9,951 | 3,921 | 72,377 | 63,501 | |||||||||||||||
| 2023 (Continued) | Vanguard VIF Diversified Value Division | Vanguard VIF Equity Income Division | Vanguard VIF Growth Division | Vanguard VIF International Division | Vanguard VIF Real Estate Index Division | Vanguard VIF Short-Term Investment-Grade Division | |||||||||||||||||
| Units purchased | 15,215 | 217,550 | 2,254 | - | 21,079 | 39,590 | |||||||||||||||||
| Units withdrawn | (2,385) | (7,679) | (80) | (3,068) | (883) | (783) | |||||||||||||||||
| Units transferred between Divisions and to/from General Account | 11,417 | (67,643) | 9,112 | 138,841 | (5,022) | - | |||||||||||||||||
| Net increase (decrease) | 24,247 | 142,228 | 11,286 | 135,773 | 15,174 | 38,807 | |||||||||||||||||
| F-65 |
Notes To Financial Statements (Continued)
7. NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)
| 2022 | American Century VP Capital Appreciation Division | American Century VP Disciplined Core Value Division | American Century VP International Division | American Century VP Value Division | American Funds® Asset Allocation Division | American Funds® Growth-Income Division | American Funds® IS Bond Division | American Funds® IS Global Growth-Income Division | |||||||||||||||
| Units purchased | 16,722 | 301,146 | 45,974 | 35,034 | 111,864 | 79,125 | 4,525 | 14,310 | |||||||||||||||
| Units withdrawn | (362) | (631,749) | (923) | (83,520) | (156,012) | (119,110) | (133) | (277) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | (117) | (67,538) | 28,454 | 5,574 | 77,707 | 3,897 | - | 1,278 | |||||||||||||||
| Net increase (decrease) | 16,243 | (398,141) | 73,505 | (42,912) | 33,559 | (36,088) | 4,392 | 15,311 | |||||||||||||||
| 2022 (Continued) | American Funds® IS New World Division | Black Rock High Yield V.I. Division | Black Rock Small Cap Index V.I. Division | Black Rock Total Return V.I. Division | BNY Mellon Mid Cap Stock Division | Delaware Ivy VIP Science and Technology Division | Delaware VIP® Emerging Markets Division | Delaware VIP® Small Cap Value Division | |||||||||||||||
| Units purchased | 2,426 | 11,038 | 113,525 | 1,632 | 1,411 | 6,766 | 27,375 | 11,515 | |||||||||||||||
| Units withdrawn | (158) | (440) | (2,114) | (1,632) | (1,411) | (6,766) | (7,398) | (3,023) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 12,507 | 34,655 | 37,222 | - | - | - | 70,444 | - | |||||||||||||||
| Net increase (decrease) | 14,775 | 45,253 | 148,633 | - | - | - | 90,421 | 8,492 | |||||||||||||||
| 2022 (Continued) | DFA VA International Small Division | DFA U.S. Targeted value Division | DFA VIT Inflation- Protected Division | DWS Small Cap Index Division | Fidelity® Growth Division | Fidelity® VIP Contrafund® Division | Fidelity® VIP Extended Market Index Division | Fidelity® VIP Freedom 2025 Division | |||||||||||||||
| Units purchased | 24,006 | 30,024 | 8,648 | 32,963 | 10,276 | 379,303 | 7,719 | 104,803 | |||||||||||||||
| Units withdrawn | (738) | (923) | (272) | (47,394) | (253) | (872,039) | (1,186) | (2,404) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 26,505 | 31,259 | 10,009 | (37,696) | 12,662 | (86,573) | 176,472 | 9,722 | |||||||||||||||
| Net increase (decrease) | 49,773 | 60,360 | 18,385 | (52,127) | 22,685 | (579,309) | 183,005 | 112,121 | |||||||||||||||
| 2022 (Continued) | Fidelity® VIP Freedom 2030 Division | Fidelity® VIP Freedom 2035 Division | Fidelity® VIP Freedom 2040 Division | Fidelity® VIP Freedom 2045 Division | Fidelity® VIP Freedom 2050 Division | Fidelity® VIP Freedom 2055 Division | Fidelity® VIP Freedom 2060 Division | Fidelity® VIP Freedom 2065 Division | |||||||||||||||
| Units purchased | 6,128 | 59,737 | 23,662 | 46,910 | 32,589 | 33,593 | 22,815 | 515 | |||||||||||||||
| Units withdrawn | (884) | (1,843) | (8,927) | (25,826) | (15,577) | (4,269) | (8,956) | (11) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 101 | (215) | 64,714 | 7,008 | 135 | 13,534 | 733 | 7 | |||||||||||||||
| Net increase (decrease) | 5,345 | 57,679 | 79,449 | 28,092 | 17,147 | 42,858 | 14,592 | 511 | |||||||||||||||
| F-66 |
Notes To Financial Statements (Continued)
7. NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)
| 2022 (Continued) | |||||||||||||||||||||||
| Fidelity® VIP Freedom Income Division | Fidelity® VIP Index 500 Division | Fidelity® VIP Index 500 Division | Fidelity® VIP International Index Division | Franklin Small Cap Value VIP Division | Goldman Sachs Mid Cap Value Division | Goldman Sachs Small Cap Equity Insights Division | Goldman Sachs Strategic Growth Division | ||||||||||||||||
| (Initial Class) | (Service Class) | ||||||||||||||||||||||
| Units purchased | 2,433 | - | 425,014 | 109,091 | 44,310 | 227 | 5,361 | 41,999 | |||||||||||||||
| Units withdrawn | (54) | - | (7,817) | (2,358) | (57,936) | (1,251) | (5,361) | (91,592) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 82 | - | 70,784 | - | (10,850) | 226,602 | - | 113,440 | |||||||||||||||
| Net increase (decrease) | 2,461 | - | 487,981 | 106,733 | (24,476) | 225,578 | - | 63,847 | |||||||||||||||
| 2022 (Continued) | Invesco Oppenheimer V.I. International Growth Division | Invesco V.I. Capital Appreciation Division | Invesco V.I. Core Plus Bond Division | Invesco V.I. Discovery Mid Cap Growth Division | Invesco V.I. Diversified Dividend Division | Invesco V.I. Global Division | Invesco V.I. Global Strategic Income Division | Invesco V.I. Health Care Division | |||||||||||||||
| Units purchased | 48,217 | 492,715 | 87,589 | 545,338 | 17,830 | 389,312 | 181,116 | 6,618 | |||||||||||||||
| Units withdrawn | (97,176) | (927,075) | (84,805) | (947,796) | (20,017) | (683,528) | (258,957) | (13,159) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | (27,280) | (22,378) | 17,573 | (88,745) | 18,829 | 17,770 | (3,173) | (6,938) | |||||||||||||||
| Net increase (decrease) | (76,239) | (456,738) | 20,357 | (491,203) | 16,642 | (276,446) | (81,014) | (13,479) | |||||||||||||||
| 2022 (Continued) | Invesco V.I. Main Street Division | Invesco V.I. Small Cap Equity Division | Invesco V.I. Technology Division | Janus Henderson Balanced Division | Janus Henderson Forty Division | Janus Henderson Global Research Division | JPMorgan Insurance Trust U.S. Equity Division | MFS® Blended Research Core Equity Division | |||||||||||||||
| Units purchased | 161,996 | 62,763 | 33,469 | 25,180 | 119,559 | 255,537 | 1,219 | 1,753 | |||||||||||||||
| Units withdrawn | (337,985) | (2,072) | (48,347) | (50,586) | (285,648) | (309,344) | (1,219) | (1,753) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | (2,917) | - | 1,096 | 633 | (803) | (3,951) | - | - | |||||||||||||||
| Net increase (decrease) | (178,906) | 60,691 | (13,782) | (24,773) | (166,892) | (57,758) | - | - | |||||||||||||||
| 2022 (Continued) | MFS® Global Real Estate Division | MFS® International Intrinsic Value Division | MFS® Investors Trust Division | MFS® Mid Cap Value Division | MFS® New Discovery Division | MFS® Value Division | MML Aggressive Allocation Division | MML American Funds Growth Division | |||||||||||||||
| Units purchased | 4,402 | 22 | 2,182 | 7,428 | 7,168 | 146,353 | 28 | 495 | |||||||||||||||
| Units withdrawn | (130) | (98) | (4,308) | (168) | (9,843) | (2,457) | (209) | (1,095) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 4,965 | 17,722 | (5,857) | (71) | (4,971) | 29,595 | 37,767 | 198,187 | |||||||||||||||
| Net increase (decrease) | 9,237 | 17,646 | (7,983) | 7,189 | (7,646) | 173,491 | 37,586 | 197,587 | |||||||||||||||
| F-67 |
Notes To Financial Statements (Continued)
7. NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)
| 2022 (Continued) | MML American Funds International Division | MML Balanced Allocation Division | MML Blend Division | MML Blue Chip Growth Division | MML Conservative Allocation Division | MML Dynamic Bond Division | MML Equity Division | MML Equity Index Division | |||||||||||||||
| Units purchased | 7,843 | 99,769 | 227,950 | 99,267 | 4 | 4,552 | 649,566 | 423,497 | |||||||||||||||
| Units withdrawn | (7,866) | (2,034) | (444,353) | (129,669) | (28) | (134) | (1,094,248) | (1,246,144) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 23 | 8,409 | (12,023) | (86,618) | 5,024 | - | (54,413) | 62,383 | |||||||||||||||
| Net increase (decrease) | - | 106,144 | (228,426) | (117,020) | 5,000 | 4,418 | (499,095) | (760,264) | |||||||||||||||
| 2022 (Continued) | MML Foreign Division | MML Global Division | MML Growth Allocation Division | MML High Yield Division | MML Income & Growth Division | MML Inflation- Protected and Income Division | MML Large Cap Growth Division | MML Managed Bond Division | |||||||||||||||
| Units purchased | 32,873 | 1,083 | 856 | 2,260 | 47 | 75,398 | 15,904 | 174,636 | |||||||||||||||
| Units withdrawn | (889) | (162) | (1,666) | (2,260) | (345) | (69,878) | (682) | (291,620) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 27,335 | 18,652 | 169,811 | - | 62,549 | (5,463) | 37,699 | 44,947 | |||||||||||||||
| Net increase (decrease) | 59,319 | 19,573 | 169,001 | - | 62,251 | 57 | 52,921 | (72,037) | |||||||||||||||
| 2022 (Continued) | MML Managed Volatility Division | MML Mid Cap Growth Division | MML Moderate Allocation Division | MML Short Duration Bond Division | MML Small Cap Equity Division | MML Small Cap Growth Equity Division | MML Small Mid Cap Value Division | MML Total Return Bond Division | |||||||||||||||
| Units purchased | 45,363 | 85,759 | 32 | 4,433 | 95,167 | 81,690 | 297 | 11,252 | |||||||||||||||
| Units withdrawn | (60,425) | (16,260) | (232) | (130) | (165,048) | (100,409) | (297) | (248) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 1,476 | - | 41,979 | - | (15,643) | 368,745 | - | (357) | |||||||||||||||
| Net increase (decrease) | (13,586) | 69,499 | 41,779 | 4,303 | (85,524) | 350,026 | - | 10,647 | |||||||||||||||
| 2022 (Continued) | MML U.S. Government Money Market Division | PIMCO Global Bond Opportunities Division | PIMCO Real Return Division | PIMCO Total Return Division | T. Rowe Limited - Term Bond Division | T. Rowe Price Blue Chip Growth Division | T. Rowe Price Equity Income Division | T. Rowe Price Mid-Cap Growth Division | |||||||||||||||
| Units purchased | 2,868,290 | 36,088 | 3 | 24 | 448 | 25,578 | 71,718 | 191,439 | |||||||||||||||
| Units withdrawn | (1,031,513) | (1,171) | (9) | (88) | (11) | (41,893) | (115,628) | (517,189) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | (1,652,969) | 45,186 | 1,769 | 15,922 | 32 | (9,430) | 130,746 | (26,728) | |||||||||||||||
| Net increase (decrease) | 183,808 | 80,103 | 1,763 | 15,858 | 469 | (25,745) | 86,836 | (352,478) | |||||||||||||||
| F-68 |
Notes To Financial Statements (Continued)
7. NET INCREASE (DECREASE) IN OUTSTANDING UNITS (Continued)
| 2022 (Continued) | Templeton Foreign VIP Division | Templeton Global Bond VIP Division | Vanguard VIF Balanced Division | Vanguard VIF Capital Growth Division | Vanguard VIF Diversified Value Division | Vanguard VIF Equity Income Division | Vanguard VIF Real Estate Index Division | Vanguard VIF Short Term Investment Division | |||||||||||||||
| Units purchased | 122,913 | 5,912 | 13,828 | 59,410 | 29,818 | 163,934 | 22,104 | 40,601 | |||||||||||||||
| Units withdrawn | (147,903) | (1,660) | (305) | (1,963) | (901) | (3,140) | (1,640) | (380) | |||||||||||||||
| Units transferred between Divisions and to/from General Account | 89,226 | - | (1,067) | - | 33,429 | - | 6,040 | - | |||||||||||||||
| Net increase (decrease) | 64,236 | 4,252 | 12,456 | 57,447 | 62,346 | 160,794 | 26,504 | 40,221 | |||||||||||||||
| F-69 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS | ||
| A. | A summary of units outstanding, unit values, net assets, investment income ratios, expense ratios (excluding expenses of the underlying funds) and total return ratios for each of the years in the five-year period ended December 31, 2023 follows: | ||
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| American Century VP Capital Appreciation Division6 | ||||||||||||||||||||||||||||
| 2023 | 171,999 | $ | - | - | $ | 0.88 | $ | 151,581 | - | % | - | % | - | 0.60 | % | - | % | - | 20.69 | % | ||||||||
| 2022 | 16,242 | - | - | 0.73 | 11,860 | - | - | - | 0.60 | - | - | (28.11 | ) | |||||||||||||||
| American Century VP Disciplined Core Value Division | ||||||||||||||||||||||||||||
| 2023 | 7,599,490 | 3.79 | to | 4.40 | 28,872,205 | 1.54 | 0.25 | to | 0.55 | 8.06 | to | 8.38 | ||||||||||||||||
| 2022 | 7,888,083 | 3.50 | to | 4.06 | 27,707,765 | 1.76 | 0.25 | to | 0.55 | (13.21 | ) | to | (12.95 | ) | ||||||||||||||
| 2021 | 8,286,224 | 4.04 | to | 4.66 | 33,489,182 | 1.07 | 0.25 | to | 0.55 | 22.97 | to | 23.34 | ||||||||||||||||
| 2020 | 8,760,196 | 3.28 | to | 3.78 | 28,800,968 | 1.96 | 0.25 | to | 0.55 | 11.20 | to | 11.53 | ||||||||||||||||
| 2019 | 9,124,491 | 2.95 | to | 3.39 | 26,997,125 | 2.08 | 0.25 | to | 0.55 | 23.27 | to | 23.64 | ||||||||||||||||
| American Century VP International Division6 | ||||||||||||||||||||||||||||
| 2023 | 172,476 | - | - | 0.86 | 148,900 | 1.23 | - | - | 0.60 | - | - | 12.57 | ||||||||||||||||
| 2022 | 73,505 | - | - | 0.77 | 56,372 | 0.01 | - | - | 0.60 | - | - | (24.75 | ) | |||||||||||||||
| American Century VP Value Division | ||||||||||||||||||||||||||||
| 2023 | 526,324 | 5.21 | to | 5.54 | 2,807,129 | 2.40 | 0.25 | to | 0.55 | 8.50 | to | 8.83 | ||||||||||||||||
| 2022 | 522,275 | 4.80 | to | 5.09 | 2,563,563 | 2.08 | 0.25 | to | 0.55 | (0.01 | ) | to | 0.29 | |||||||||||||||
| 2021 | 565,187 | 4.80 | to | 5.07 | 2,766,523 | 1.74 | 0.25 | to | 0.55 | 23.83 | to | 24.20 | ||||||||||||||||
| 2020 | 590,772 | 3.88 | to | 4.09 | 2,330,862 | 2.37 | 0.25 | to | 0.55 | 0.42 | to | 0.73 | ||||||||||||||||
| 2019 | 578,422 | 3.86 | to | 4.06 | 2,264,246 | 2.11 | 0.25 | to | 0.55 | 26.34 | to | 26.72 | ||||||||||||||||
| American Funds Insurance Series® Asset Allocation Division (Class 1)6 | ||||||||||||||||||||||||||||
| 2023 | 23,211 | - | - | 1.02 | 23,599 | 2.47 | - | - | 0.60 | - | - | 14.55 | ||||||||||||||||
| American Funds Insurance Series® Asset Allocation Division (Class 2) | ||||||||||||||||||||||||||||
| 2023 | 2,455,694 | 4.35 | to | 4.63 | 11,010,757 | 2.24 | 0.25 | to | 0.55 | 13.64 | to | 13.98 | ||||||||||||||||
| 2022 | 2,630,594 | 3.83 | to | 4.06 | 10,357,028 | 1.93 | 0.25 | to | 0.55 | (13.88 | ) | to | (13.62 | ) | ||||||||||||||
| 2021 | 2,597,036 | 4.44 | to | 4.70 | 11,859,082 | 1.54 | 0.25 | to | 0.55 | 14.47 | to | 14.81 | ||||||||||||||||
| 2020 | 2,612,782 | 3.88 | to | 4.09 | 10,395,398 | 1.71 | 0.25 | to | 0.55 | 11.84 | to | 12.18 | ||||||||||||||||
| 2019 | 2,614,285 | 3.47 | to | 3.65 | 9,278,560 | 1.95 | 0.25 | to | 0.55 | 20.57 | to | 20.93 | ||||||||||||||||
| American Funds Insurance Series® Capital World Growth and Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 62,883 | - | - | 1.03 | 64,552 | 1.93 | - | - | 0.60 | - | - | 20.87 | ||||||||||||||||
| American Funds Insurance Series® Global Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 53,729 | - | - | 0.95 | 50,952 | 1.33 | - | - | 0.60 | - | - | 22.90 | ||||||||||||||||
| 2022 | 15,311 | - | - | 0.77 | 11,814 | 1.26 | - | - | 0.60 | - | - | (24.54 | ) | |||||||||||||||
| American Funds Insurance Series® Growth-Income Division (Class 2) | ||||||||||||||||||||||||||||
| 2023 | 1,850,575 | 6.29 | to | 6.69 | 11,923,829 | 1.39 | 0.25 | to | 0.55 | 25.45 | to | 25.82 | ||||||||||||||||
| 2022 | 1,942,734 | 5.01 | to | 5.32 | 9,958,087 | 1.29 | 0.25 | to | 0.55 | (16.95 | ) | to | (16.70 | ) | ||||||||||||||
| 2021 | 1,978,822 | 6.04 | to | 6.39 | 12,199,405 | 1.11 | 0.25 | to | 0.55 | 23.41 | to | 23.79 | ||||||||||||||||
| 2020 | 2,310,967 | 4.89 | to | 5.16 | 11,567,104 | 1.38 | 0.25 | to | 0.55 | 12.92 | to | 13.26 | ||||||||||||||||
| 2019 | 2,357,671 | 4.33 | to | 4.55 | 10,430,144 | 1.71 | 0.25 | to | 0.55 | 25.44 | to | 25.82 | ||||||||||||||||
| American Funds Insurance Series® International Growth and Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 33,435 | - | - | 1.02 | 33,993 | 3.60 | - | - | 0.60 | - | - | 16.08 | ||||||||||||||||
| American Funds Insurance Series® New World Division6 | ||||||||||||||||||||||||||||
| 2023 | 18,940 | - | - | 0.92 | 17,458 | 1.88 | - | - | 0.60 | - | - | 16.22 | ||||||||||||||||
| 2022 | 14,775 | - | - | 0.79 | 11,718 | 2.91 | - | - | 0.60 | - | - | (21.86 | ) | |||||||||||||||
| F-70 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| American Funds Insurance Series® The Bond Fund of America Division6 | ||||||||||||||||||||||||||||
| 2023 | 29,476 | $ | - | - | $ | 0.92 | $ | 26,982 | 5.10 | % | - | % | - | 0.60 | % | - | % | - | 4.89 | % | ||||||||
| 2022 | 4,392 | - | - | 0.87 | 3,833 | 2.58 | - | - | 0.60 | - | - | (12.49 | ) | |||||||||||||||
| American Funds Insurance Series® Washington Mutual Investors Division6 | ||||||||||||||||||||||||||||
| 2023 | 10,861 | - | - | 1.10 | 11,997 | 1.39 | - | - | 0.60 | - | - | 17.29 | ||||||||||||||||
| BlackRock High Yield V.I. Division6 | ||||||||||||||||||||||||||||
| 2023 | 93,333 | - | - | 1.02 | 95,497 | 6.56 | - | - | 0.60 | - | - | 13.23 | ||||||||||||||||
| 2022 | 45,254 | - | - | 0.90 | 40,891 | 4.75 | - | - | 0.60 | - | - | (10.35 | ) | |||||||||||||||
| BlackRock Small Cap Index V.I. Division6 | ||||||||||||||||||||||||||||
| 2023 | 259,701 | - | - | 0.95 | 247,149 | 1.12 | - | - | 0.60 | - | - | 16.43 | ||||||||||||||||
| 2022 | 148,632 | - | - | 0.82 | 121,493 | 2.04 | - | - | 0.60 | - | - | (20.63 | ) | |||||||||||||||
| BNY Mellon MidCap Stock Division6 | ||||||||||||||||||||||||||||
| 2023 | 79,565 | - | - | 1.05 | 83,271 | 0.52 | - | - | 0.60 | - | - | 17.99 | ||||||||||||||||
| 2022 | - | - | - | 0.89 | - | 0.56 | - | - | 0.60 | - | - | (14.28 | ) | |||||||||||||||
| Delaware Ivy VIP Science and Technology Division6 | ||||||||||||||||||||||||||||
| 2023 | 34,658 | - | - | 0.97 | 33,702 | - | - | - | 0.60 | - | - | 39.06 | ||||||||||||||||
| 2022 | - | - | - | 0.70 | - | - | - | - | 0.60 | - | - | (31.84 | ) | |||||||||||||||
| Delaware VIP® Emerging Markets Division6 | ||||||||||||||||||||||||||||
| 2023 | 134,459 | - | - | 0.83 | 112,021 | 1.24 | - | - | 0.60 | - | - | 13.45 | ||||||||||||||||
| 2022 | 90,421 | - | - | 0.73 | 66,402 | 0.33 | - | - | 0.60 | - | - | (27.81 | ) | |||||||||||||||
| Delaware VIP® Small Cap Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 33,497 | - | - | 0.99 | 33,180 | 0.56 | - | - | 0.60 | - | - | 9.10 | ||||||||||||||||
| 2022 | 8,492 | - | - | 0.91 | 7,710 | 0.16 | - | - | 0.60 | - | - | (12.36 | ) | |||||||||||||||
| DFA VA International Small Division6 | ||||||||||||||||||||||||||||
| 2023 | 59,284 | - | - | 0.97 | 57,786 | 3.34 | - | - | 0.60 | - | - | 14.11 | ||||||||||||||||
| 2022 | 49,773 | - | - | 0.85 | 42,517 | 4.67 | - | - | 0.60 | - | - | (17.64 | ) | |||||||||||||||
| DFA VA U.S. Targeted Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 67,727 | - | - | 1.19 | 80,818 | 1.66 | - | - | 0.60 | - | - | 20.03 | ||||||||||||||||
| 2022 | 60,359 | - | - | 0.99 | 60,005 | 2.23 | - | - | 0.60 | - | - | (4.21 | ) | |||||||||||||||
| DFA VIT Inflation-Protected Securities Division6 | ||||||||||||||||||||||||||||
| 2023 | 18,103 | - | - | 0.92 | 16,648 | 3.96 | - | - | 0.60 | - | - | 4.02 | ||||||||||||||||
| 2022 | 18,385 | - | - | 0.88 | 16,254 | 14.26 | - | - | 0.60 | - | - | (12.45 | ) | |||||||||||||||
| DWS Small Cap Index Division | ||||||||||||||||||||||||||||
| 2023 | 1,010,726 | 4.37 | to | 4.85 | 4,568,445 | 1.13 | 0.25 | to | 0.55 | 16.12 | to | 16.47 | ||||||||||||||||
| 2022 | 1,049,211 | 3.76 | to | 4.17 | 4,075,492 | 0.92 | 0.25 | to | 0.55 | (21.07 | ) | to | (20.83 | ) | ||||||||||||||
| 2021 | 1,101,337 | 4.76 | to | 5.27 | 5,419,937 | 0.83 | 0.25 | to | 0.55 | 13.87 | to | 14.22 | ||||||||||||||||
| 2020 | 1,145,219 | 4.18 | to | 4.61 | 4,937,438 | 1.10 | 0.25 | to | 0.55 | 18.78 | to | 19.13 | ||||||||||||||||
| 2019 | 1,157,374 | 3.52 | to | 3.87 | 4,193,953 | 1.06 | 0.25 | to | 0.55 | 24.54 | to | 24.91 | ||||||||||||||||
| Eaton Vance VT Floating-Rate Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 3,646 | - | - | 1.09 | 3,976 | 6.88 | - | - | 0.60 | - | - | 11.47 | ||||||||||||||||
| Fidelity® VIP Bond Index Division6 | ||||||||||||||||||||||||||||
| 2023 | 41,206 | - | - | 0.91 | 37,387 | 2.48 | - | - | 0.60 | - | - | 5.13 | ||||||||||||||||
| F-71 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| Fidelity® VIP Contrafund® Division | ||||||||||||||||||||||||||||
| 2023 | 10,943,710 | $ | 7.32 | to | $ | 8.98 | $ | 79,541,615 | 0.49 | % | 0.25 | % | to | 0.55 | % | 32.72 | % | to | 33.12 | % | ||||||||
| 2022 | 11,560,924 | 5.51 | to | 6.75 | 63,406,218 | 0.51 | 0.25 | to | 0.55 | (26.72 | ) | to | (26.50 | ) | ||||||||||||||
| 2021 | 12,140,233 | 7.52 | to | 9.18 | 90,757,280 | 0.06 | 0.25 | to | 0.55 | 27.13 | to | 27.52 | ||||||||||||||||
| 2020 | 12,860,701 | 5.92 | to | 7.20 | 75,496,258 | 0.25 | 0.25 | to | 0.55 | 29.85 | to | 30.24 | ||||||||||||||||
| 2019 | 13,448,613 | 4.56 | to | 5.53 | 60,806,457 | 0.46 | 0.25 | to | 0.55 | 30.86 | to | 31.25 | ||||||||||||||||
| Fidelity® VIP Extended Market Index Division6 | ||||||||||||||||||||||||||||
| 2023 | 295,965 | - | - | 0.99 | 291,990 | 1.79 | - | - | 0.60 | - | - | 17.11 | ||||||||||||||||
| 2022 | 183,005 | - | - | 0.84 | 154,173 | 1.97 | - | - | 0.60 | - | - | (18.30 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2020 Division6 | ||||||||||||||||||||||||||||
| 2023 | 394 | - | - | 0.96 | 377 | 2.14 | - | - | 0.60 | - | - | 12.34 | ||||||||||||||||
| Fidelity® VIP Freedom 2025 Division6 | ||||||||||||||||||||||||||||
| 2023 | 253,527 | - | - | 0.96 | 243,367 | 3.08 | - | - | 0.60 | - | - | 13.48 | ||||||||||||||||
| 2022 | 112,120 | - | - | 0.85 | 94,841 | 2.01 | - | - | 0.60 | - | - | (16.51 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2030 Division6 | ||||||||||||||||||||||||||||
| 2023 | 190,346 | - | - | 0.97 | 183,741 | 2.60 | - | - | 0.60 | - | - | 14.56 | ||||||||||||||||
| 2022 | 5,345 | - | - | 0.84 | 4,504 | 1.86 | - | - | 0.60 | - | - | (16.94 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2035 Division6 | ||||||||||||||||||||||||||||
| 2023 | 149,100 | - | - | 0.98 | 145,691 | 2.25 | - | - | 0.60 | - | - | 16.71 | ||||||||||||||||
| 2022 | 57,680 | - | - | 0.84 | 48,292 | 1.99 | - | - | 0.60 | - | - | (17.75 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2040 Division6 | ||||||||||||||||||||||||||||
| 2023 | 563,122 | - | - | 0.99 | 558,221 | 2.06 | - | - | 0.60 | - | - | 18.77 | ||||||||||||||||
| 2022 | 79,449 | - | - | 0.83 | 66,312 | 2.51 | - | - | 0.60 | - | - | (18.30 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2045 Division6 | ||||||||||||||||||||||||||||
| 2023 | 63,400 | - | - | 1.00 | 63,127 | 1.84 | - | - | 0.60 | - | - | 19.33 | ||||||||||||||||
| 2022 | 28,092 | - | - | 0.83 | 23,440 | 1.13 | - | - | 0.60 | - | - | (18.30 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2050 Division6 | ||||||||||||||||||||||||||||
| 2023 | 222,087 | - | - | 1.00 | 221,174 | 1.97 | - | - | 0.60 | - | - | 19.36 | ||||||||||||||||
| 2022 | 17,147 | - | - | 0.83 | 14,306 | 1.11 | - | - | 0.60 | - | - | (18.35 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2055 Division6 | ||||||||||||||||||||||||||||
| 2023 | 89,198 | - | - | 1.00 | 88,839 | 1.72 | - | - | 0.60 | - | - | 19.40 | ||||||||||||||||
| 2022 | 42,857 | - | - | 0.83 | 35,748 | 2.50 | - | - | 0.60 | - | - | (18.36 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2060 Division6 | ||||||||||||||||||||||||||||
| 2023 | 104,814 | - | - | 1.00 | 104,363 | 2.42 | - | - | 0.60 | - | - | 19.30 | ||||||||||||||||
| 2022 | 14,592 | - | - | 0.83 | 12,178 | 1.63 | - | - | 0.60 | - | - | (18.27 | ) | |||||||||||||||
| Fidelity® VIP Freedom 2065 Division6 | ||||||||||||||||||||||||||||
| 2023 | 2,052 | - | - | 1.00 | 2,042 | 1.68 | - | - | 0.60 | - | - | 19.29 | ||||||||||||||||
| 2022 | 511 | - | - | 0.83 | 426 | 2.49 | - | - | 0.60 | - | - | (18.32 | ) | |||||||||||||||
| Fidelity® VIP Freedom Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 47,539 | - | - | 0.95 | 45,239 | 4.58 | - | - | 0.60 | - | - | 7.82 | ||||||||||||||||
| 2022 | 2,462 | - | - | 0.88 | 2,173 | 2.14 | - | - | 0.60 | - | - | (12.06 | ) | |||||||||||||||
| Fidelity® VIP Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 435,374 | - | - | 1.04 | 452,184 | 0.05 | - | - | 0.60 | - | - | 36.09 | ||||||||||||||||
| 2022 | 22,685 | - | - | 0.76 | 17,312 | 0.23 | - | - | 0.60 | - | - | (24.52 | ) | |||||||||||||||
| F-72 |
Notes To Financial Statements (Continued)
8. FINANCIAL HIGHLIGHTS (Continued)
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| Fidelity® VIP Index 500 Division (Initial Class) | ||||||||||||||||||||||||||||
| 2023 | - | $ | - | - | $ | 10.16 | $ | - | - | % | - | % | - | 0.90 | % | - | % | - | 25.07 | % | ||||||||
| 2022 | - | - | - | 8.13 | (1) | - | - | - | 0.55 | - | - | (18.94 | ) | |||||||||||||||
| 2021 | - | - | - | 10.03 | - | - | - | - | 0.90 | - | - | 27.43 | ||||||||||||||||
| 2020 | 93 | - | - | 7.87 | 732 | 5.11 | - | - | 0.90 | - | - | 17.18 | ||||||||||||||||
| 2019 | 27 | - | - | 6.71 | 180 | - | - | - | 0.90 | - | - | 30.17 | ||||||||||||||||
| Fidelity® VIP Index 500 Division (Service Class)6 | ||||||||||||||||||||||||||||
| 2023 | 1,292,693 | - | - | 1.05 | 1,359,985 | 1.59 | - | - | 0.60 | - | - | 26.07 | ||||||||||||||||
| 2022 | 487,980 | - | - | 0.83 | 407,222 | 1.97 | - | - | 0.60 | - | - | - | ||||||||||||||||
| Fidelity® VIP International Index Division6 | ||||||||||||||||||||||||||||
| 2023 | 241,064 | - | - | 0.99 | 239,090 | 2.78 | - | - | 0.60 | - | - | 15.88 | ||||||||||||||||
| 2022 | 106,733 | - | - | 0.86 | 91,354 | 3.00 | - | - | 0.60 | - | - | (16.21 | ) | |||||||||||||||
| Fidelity® VIP Overseas Division6 | ||||||||||||||||||||||||||||
| 2023 | 112,483 | - | - | 0.94 | 105,862 | 1.06 | - | - | 0.60 | - | - | 20.50 | ||||||||||||||||
| Franklin Small Cap Value VIP Division | ||||||||||||||||||||||||||||
| 2023 | 812,443 | 1.05 | to | 6.62 | 4,355,256 | 0.53 | 0.25 | to | 0.60 | 12.46 | to | 12.74 | ||||||||||||||||
| 2022 | 766,735 | 5.55 | to | 5.89 | 4,114,825 | 0.97 | 0.25 | to | 0.55 | (10.56 | ) | to | (10.29 | ) | ||||||||||||||
| 2021 | 791,211 | 6.20 | to | 6.56 | 5,020,912 | 1.00 | 0.25 | to | 0.55 | 24.68 | to | 25.05 | ||||||||||||||||
| 2020 | 833,367 | 4.98 | to | 5.25 | 4,241,739 | 1.46 | 0.25 | to | 0.55 | 4.61 | to | 4.93 | ||||||||||||||||
| 2019 | 802,665 | 4.76 | to | 5.00 | 3,894,371 | 1.05 | 0.25 | to | 0.55 | 25.65 | to | 26.03 | ||||||||||||||||
| Franklin Strategic Income VIP Division6 | ||||||||||||||||||||||||||||
| 2023 | - | - | - | 0.97 | - | 3.49 | - | - | 0.60 | - | - | 8.18 | ||||||||||||||||
| Goldman Sachs Core Fixed Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 452 | - | - | 0.90 | 409 | 2.59 | - | - | 0.60 | - | - | 5.83 | ||||||||||||||||
| Goldman Sachs International Equity Insights Division6 | ||||||||||||||||||||||||||||
| 2023 | 44,891 | - | - | 1.05 | 47,304 | 6.24 | - | - | 0.60 | - | - | 18.71 | ||||||||||||||||
| Goldman Sachs Mid Cap Growth Division4, 6 | ||||||||||||||||||||||||||||
| 2023 | 5,979 | - | - | 0.89 | 5,342 | - | - | - | 0.60 | - | - | 18.45 | ||||||||||||||||
| Goldman Sachs Mid Cap Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 351,797 | - | - | 1.04 | 364,780 | 1.04 | - | - | 0.60 | - | - | 11.42 | ||||||||||||||||
| 2022 | 225,578 | - | - | 0.93 | 209,931 | 0.72 | - | - | 0.60 | - | - | (9.99 | ) | |||||||||||||||
| Goldman Sachs Strategic Growth Division | ||||||||||||||||||||||||||||
| 2023 | 1,589,695 | 4.38 | to | 5.51 | 7,220,406 | - | 0.25 | to | 0.55 | 41.17 | to | 41.59 | ||||||||||||||||
| 2022 | 1,687,865 | 3.10 | to | 3.89 | 5,435,947 | - | 0.25 | to | 0.55 | (32.89 | ) | to | (32.68 | ) | ||||||||||||||
| 2021 | 1,624,019 | 4.62 | to | 5.78 | 7,767,679 | - | 0.25 | to | 0.55 | 21.26 | to | 21.62 | ||||||||||||||||
| 2020 | 1,670,007 | 3.81 | to | 4.75 | 6,575,794 | 0.09 | 0.25 | to | 0.55 | 39.73 | to | 40.16 | ||||||||||||||||
| 2019 | 1,826,851 | 2.73 | to | 3.39 | 5,136,197 | 0.30 | 0.25 | to | 0.55 | 34.78 | to | 35.19 | ||||||||||||||||
| Invesco Oppenheimer V.I. International Growth Division | ||||||||||||||||||||||||||||
| 2023 | 1,310,700 | 3.01 | to | 3.22 | 4,056,404 | 0.60 | 0.25 | to | 0.55 | 20.40 | to | 20.76 | ||||||||||||||||
| 2022 | 1,458,660 | 2.50 | to | 2.66 | 3,747,356 | - | 0.25 | to | 0.55 | (27.53 | ) | to | (27.31 | ) | ||||||||||||||
| 2021 | 1,534,899 | 3.45 | to | 3.67 | 5,445,291 | - | 0.25 | to | 0.55 | 9.62 | to | 9.94 | ||||||||||||||||
| 2020 | 1,744,201 | 3.14 | to | 3.33 | 5,653,505 | 1.02 | 0.25 | to | 0.55 | 20.83 | to | 21.20 | ||||||||||||||||
| 2019 | 1,687,610 | 2.60 | to | 2.75 | 4,503,961 | 1.06 | 0.25 | to | 0.55 | 27.90 | to | 28.28 | ||||||||||||||||
| F-73 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| Invesco V.I. Capital Appreciation Division | ||||||||||||||||||||||||||||
| 2023 | 12,025,572 | $ | 5.18 | to | $ | 6.14 | $ | 58,605,516 | - | % | 0.25 | % | to | 0.55 | % | 34.64 | % | to | 35.04 | % | ||||||||
| 2022 | 12,388,585 | 3.85 | to | 4.55 | 44,834,018 | - | 0.25 | to | 0.55 | (31.16 | ) | to | (30.96 | ) | ||||||||||||||
| 2021 | 12,845,322 | 5.59 | to | 6.59 | 67,562,853 | - | 0.25 | to | 0.55 | 21.90 | to | 22.26 | ||||||||||||||||
| 2020 | 13,538,141 | 4.59 | to | 5.39 | 58,489,775 | - | 0.25 | to | 0.55 | 35.84 | to | 36.25 | ||||||||||||||||
| 2019 | 14,301,264 | 3.38 | to | 3.95 | 45,477,720 | 0.06 | 0.25 | to | 0.55 | 35.45 | to | 35.86 | ||||||||||||||||
| Invesco V.I. Core Plus Bond Division5 | ||||||||||||||||||||||||||||
| 2023 | 1,766,901 | 1.48 | to | 1.54 | 2,790,568 | 2.65 | 0.25 | to | 0.55 | 5.56 | to | 5.88 | ||||||||||||||||
| 2022 | 1,743,697 | 1.40 | to | 1.46 | 2,604,427 | 1.93 | 0.25 | to | 0.55 | (14.50 | ) | to | (14.24 | ) | ||||||||||||||
| 2021 | 1,723,340 | 1.63 | to | 1.82 | 3,005,336 | 2.13 | 0.25 | to | 0.55 | (2.19 | ) | to | (1.89 | ) | ||||||||||||||
| 2020 | 1,710,803 | 1.66 | to | 1.75 | 3,047,589 | 3.20 | 0.25 | to | 0.55 | 9.11 | to | 9.44 | ||||||||||||||||
| 2019 | 1,694,776 | 1.52 | to | 1.60 | 2,761,946 | 3.25 | 0.25 | to | 0.55 | 8.92 | to | 9.25 | ||||||||||||||||
| Invesco V.I. Discovery Mid Cap Growth Division | ||||||||||||||||||||||||||||
| 2023 | 14,070,708 | 0.80 | to | 4.72 | 54,170,282 | - | 0.25 | to | 0.60 | 12.87 | to | 13.15 | ||||||||||||||||
| 2022 | 15,225,855 | 3.98 | to | 4.18 | 53,052,881 | - | 0.25 | to | 0.55 | (31.36 | ) | to | (31.15 | ) | ||||||||||||||
| 2021 | 15,717,057 | 5.80 | to | 6.07 | 80,082,095 | - | 0.25 | to | 0.55 | 18.45 | to | 18.80 | ||||||||||||||||
| 2020 | 16,663,788 | 4.89 | to | 5.11 | 71,808,430 | 0.04 | 0.25 | to | 0.55 | 39.92 | to | 40.34 | ||||||||||||||||
| 2019 | 17,492,552 | 3.50 | to | 3.64 | 54,051,679 | - | 0.25 | to | 0.55 | 38.60 | to | 39.02 | ||||||||||||||||
| Invesco V.I. Diversified Dividend Division | ||||||||||||||||||||||||||||
| 2023 | 347,505 | 1.11 | to | 2.25 | 736,838 | 2.04 | 0.25 | to | 0.60 | 8.77 | to | 9.04 | ||||||||||||||||
| 2022 | 321,772 | 1.95 | to | 2.07 | 646,113 | 1.99 | 0.25 | to | 0.55 | (2.22 | ) | to | (1.92 | ) | ||||||||||||||
| 2021 | 305,130 | 1.99 | to | 2.11 | 625,298 | 1.50 | 0.25 | to | 0.55 | 18.24 | to | 18.60 | ||||||||||||||||
| 2020 | 675,691 | 1.68 | to | 1.78 | 1,182,698 | 3.02 | 0.25 | to | 0.55 | (0.41 | ) | to | (0.11 | ) | ||||||||||||||
| 2019 | 706,561 | 1.69 | to | 1.78 | 1,233,125 | 2.91 | 0.25 | to | 0.55 | 24.41 | to | 24.78 | ||||||||||||||||
| Invesco V.I. Global Division | ||||||||||||||||||||||||||||
| 2023 | 8,305,010 | 0.92 | to | 8.19 | 57,370,793 | 0.23 | 0.25 | to | 0.60 | 34.40 | to | 34.73 | ||||||||||||||||
| 2022 | 8,825,282 | 5.54 | to | 6.09 | 45,622,416 | - | 0.25 | to | 0.55 | (32.14 | ) | to | (31.93 | ) | ||||||||||||||
| 2021 | 9,101,728 | 8.17 | to | 8.95 | 69,283,191 | - | 0.25 | to | 0.55 | 14.86 | to | 15.20 | ||||||||||||||||
| 2020 | 9,544,563 | 7.11 | to | 7.77 | 63,229,251 | 0.71 | 0.25 | to | 0.55 | 26.94 | to | 27.32 | ||||||||||||||||
| 2019 | 10,007,618 | 5.60 | to | 6.10 | 52,334,305 | 0.90 | 0.25 | to | 0.55 | 31.06 | to | 31.46 | ||||||||||||||||
| Invesco V.I. Global Real Estate Division6 | ||||||||||||||||||||||||||||
| 2023 | 12,521 | - | - | 0.85 | 10,603 | 1.45 | - | to | 0.60 | - | - | 9.05 | ||||||||||||||||
| Invesco V.I. Global Strategic Income Division | ||||||||||||||||||||||||||||
| 2023 | 2,859,546 | 2.51 | to | 2.68 | 7,309,937 | - | 0.25 | to | 0.55 | 8.29 | to | 8.61 | ||||||||||||||||
| 2022 | 2,933,888 | 2.32 | to | 2.47 | 6,917,394 | - | 0.25 | to | 0.55 | (11.95 | ) | to | (11.68 | ) | ||||||||||||||
| 2021 | 3,014,902 | 2.64 | to | 2.80 | 8,063,814 | 4.74 | 0.25 | to | 0.55 | (3.94 | ) | to | (3.65 | ) | ||||||||||||||
| 2020 | 3,083,588 | 2.75 | to | 2.90 | 8,573,918 | 6.04 | 0.25 | to | 0.55 | 2.83 | to | 3.14 | ||||||||||||||||
| 2019 | 3,071,827 | 2.67 | to | 2.82 | 8,291,801 | 3.75 | 0.25 | to | 0.55 | 10.20 | to | 10.53 | ||||||||||||||||
| Invesco V.I. Health Care Division | ||||||||||||||||||||||||||||
| 2023 | 218,077 | 4.81 | to | 5.12 | 1,067,398 | - | 0.25 | to | 0.55 | 2.46 | to | 2.77 | ||||||||||||||||
| 2022 | 221,693 | 4.70 | to | 4.98 | 1,059,257 | - | 0.25 | to | 0.55 | (13.79 | ) | to | (13.53 | ) | ||||||||||||||
| 2021 | 235,172 | 5.45 | to | 5.76 | 1,300,387 | 0.21 | 0.25 | to | 0.55 | 11.68 | to | 12.02 | ||||||||||||||||
| 2020 | 206,043 | 4.88 | to | 5.14 | 1,021,762 | 0.34 | 0.25 | to | 0.55 | 13.83 | to | 14.17 | ||||||||||||||||
| 2019 | 177,811 | 4.28 | to | 4.50 | 776,147 | 0.04 | 0.25 | to | 0.55 | 31.78 | to | 32.17 | ||||||||||||||||
| Invesco V.I. Main Street Division | ||||||||||||||||||||||||||||
| 2023 | 4,315,393 | 3.75 | to | 5.46 | 16,562,652 | 0.85 | 0.25 | to | 0.90 | 22.12 | to | 22.91 | ||||||||||||||||
| 2022 | 4,492,401 | 3.06 | to | 4.47 | 14,057,896 | 1.48 | 0.25 | to | 0.90 | (20.85 | ) | to | (20.33 | ) | ||||||||||||||
| 2021 | 4,671,307 | 3.86 | to | 5.65 | 18,399,746 | 0.71 | 0.25 | to | 0.90 | 26.43 | to | 27.25 | ||||||||||||||||
| 2020 | 4,868,492 | 3.79 | to | 4.47 | 15,106,840 | 1.51 | 0.25 | to | 0.90 | 12.92 | to | 13.66 | ||||||||||||||||
| 2019 | 5,108,155 | 3.33 | to | 3.96 | 13,967,429 | 1.07 | 0.25 | to | 0.90 | 30.90 | to | 31.75 | ||||||||||||||||
| F-74 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| Invesco V.I. Small Cap Equity Division6 | ||||||||||||||||||||||||||||
| 2023 | 128,897 | $ | - | - | $ | 0.96 | $ | 123,550 | - | % | - | % | - | 0.60 | % | - | % | - | 16.58 | % | ||||||||
| 2022 | 60,691 | - | - | 0.82 | 49,903 | - | - | - | 0.60 | - | - | (20.51 | ) | |||||||||||||||
| Invesco V.I. Technology Division | ||||||||||||||||||||||||||||
| 2023 | 557,676 | 3.09 | to | 3.31 | 1,756,161 | - | 0.25 | to | 0.55 | 46.14 | to | 46.58 | ||||||||||||||||
| 2022 | 529,251 | 2.12 | to | 2.26 | 1,140,631 | - | 0.25 | to | 0.55 | (40.28 | ) | to | (40.10 | ) | ||||||||||||||
| 2021 | 543,034 | 3.54 | to | 3.77 | 1,959,176 | - | 0.25 | to | 0.55 | 13.78 | to | 14.13 | ||||||||||||||||
| 2020 | 421,186 | 3.12 | to | 3.30 | 1,340,222 | - | 0.25 | to | 0.55 | 45.31 | to | 45.75 | ||||||||||||||||
| 2019 | 435,268 | 2.14 | to | 2.27 | 952,543 | - | 0.25 | to | 0.55 | 35.13 | to | 35.54 | ||||||||||||||||
| Janus Henderson Balanced Division | ||||||||||||||||||||||||||||
| 2023 | 916,564 | 4.62 | to | 4.91 | 4,298,841 | 1.80 | 0.25 | to | 0.55 | 14.50 | to | 14.85 | ||||||||||||||||
| 2022 | 942,788 | 4.03 | to | 4.28 | 3,859,458 | 0.98 | 0.25 | to | 0.55 | (17.07 | ) | to | (16.83 | ) | ||||||||||||||
| 2021 | 967,560 | 4.86 | to | 5.14 | 4,769,561 | 0.67 | 0.25 | to | 0.55 | 16.27 | to | 16.62 | ||||||||||||||||
| 2020 | 971,923 | 4.18 | to | 4.41 | 4,117,190 | 1.52 | 0.25 | to | 0.55 | 13.40 | to | 13.74 | ||||||||||||||||
| 2019 | 1,044,128 | 3.69 | to | 3.88 | 3,894,534 | 1.61 | 0.25 | to | 0.55 | 21.60 | to | 21.97 | ||||||||||||||||
| Janus Henderson Forty Division | ||||||||||||||||||||||||||||
| 2023 | 4,080,387 | 5.33 | to | 5.72 | 22,328,419 | 0.19 | 0.25 | to | 0.55 | 39.20 | to | 39.61 | ||||||||||||||||
| 2022 | 4,272,388 | 3.83 | to | 4.10 | 16,768,158 | 0.19 | 0.25 | to | 0.55 | (33.92 | ) | to | (33.72 | ) | ||||||||||||||
| 2021 | 4,439,280 | 5.80 | to | 6.19 | 26,341,966 | - | 0.25 | to | 0.55 | 22.22 | to | 22.59 | ||||||||||||||||
| 2020 | 4,684,583 | 4.74 | to | 5.05 | 22,730,497 | 0.27 | 0.25 | to | 0.55 | 38.64 | to | 39.05 | ||||||||||||||||
| 2019 | 4,977,104 | 3.42 | to | 3.63 | 17,397,583 | 0.15 | 0.25 | to | 0.55 | 36.41 | to | 36.82 | ||||||||||||||||
| Janus Henderson Global Research Division | ||||||||||||||||||||||||||||
| 2023 | 6,508,519 | 2.03 | to | 2.18 | 13,534,621 | 0.93 | 0.25 | to | 0.55 | 26.08 | to | 26.46 | ||||||||||||||||
| 2022 | 6,484,464 | 1.61 | to | 1.73 | 10,671,243 | 1.06 | 0.25 | to | 0.55 | (19.85 | ) | to | (19.61 | ) | ||||||||||||||
| 2021 | 6,542,222 | 2.01 | to | 2.15 | 13,413,815 | 0.52 | 0.25 | to | 0.55 | 17.44 | to | 17.80 | ||||||||||||||||
| 2020 | 6,895,680 | 1.71 | to | 1.82 | 12,046,888 | 0.73 | 0.25 | to | 0.55 | 19.40 | to | 19.76 | ||||||||||||||||
| 2019 | 7,180,994 | 1.43 | to | 1.52 | 10,493,358 | 1.00 | 0.25 | to | 0.55 | 28.34 | to | 28.72 | ||||||||||||||||
| MFS® Global Real Estate Division6 | ||||||||||||||||||||||||||||
| 2023 | 14,221 | - | - | 0.85 | 12,038 | 0.92 | - | - | 0.60 | - | - | 11.46 | ||||||||||||||||
| 2022 | 9,237 | - | - | 0.76 | 7,015 | 1.49 | - | - | 0.60 | - | - | (26.94 | ) | |||||||||||||||
| MFS® Growth Series Division6 | ||||||||||||||||||||||||||||
| 2023 | 16,984 | - | - | 0.93 | 15,873 | - | - | - | 0.60 | - | - | 35.86 | ||||||||||||||||
| MFS® International Intrinsic Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 72,712 | - | - | 0.91 | 66,456 | 0.94 | - | - | 0.60 | - | - | 17.66 | ||||||||||||||||
| 2022 | 17,645 | - | - | 0.78 | 13,707 | 0.83 | - | - | 0.60 | - | - | (23.56 | ) | |||||||||||||||
| MFS® Investors Trust Division | ||||||||||||||||||||||||||||
| 2023 | 31,859 | 6.07 | to | 6.45 | 199,939 | 0.73 | 0.25 | to | 0.55 | 18.33 | to | 18.68 | ||||||||||||||||
| 2022 | 35,596 | 5.13 | to | 5.44 | 187,757 | 0.67 | 0.25 | to | 0.55 | (16.95 | ) | to | (16.70 | ) | ||||||||||||||
| 2021 | 43,579 | 6.17 | to | 6.53 | 276,832 | 0.61 | 0.25 | to | 0.55 | 26.12 | to | 26.50 | ||||||||||||||||
| 2020 | 45,535 | 4.89 | to | 5.16 | 228,659 | 0.63 | 0.25 | to | 0.55 | 13.24 | to | 13.58 | ||||||||||||||||
| 2019 | 53,540 | 4.32 | to | 4.54 | 237,080 | 0.71 | 0.25 | to | 0.55 | 30.86 | to | 31.25 | ||||||||||||||||
| MFS® Mid Cap Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 156,833 | - | - | 1.06 | 166,515 | 2.22 | - | - | 0.60 | - | - | 12.73 | ||||||||||||||||
| 2022 | 7,189 | - | - | 0.94 | 6,771 | 1.26 | - | - | 0.60 | - | - | (8.79 | ) | |||||||||||||||
| F-75 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| MFS® New Discovery Division | ||||||||||||||||||||||||||||
| 2023 | 199,712 | $ | 6.51 | to | $ | 6.93 | $ | 1,319,477 | - | % | 0.25 | % | to | 0.55 | % | 13.79 | % | to | 14.13 | % | ||||||||
| 2022 | 198,893 | 5.73 | to | 6.07 | 1,153,678 | - | 0.25 | to | 0.55 | (30.14 | ) | to | (29.93 | ) | ||||||||||||||
| 2021 | 206,540 | 8.20 | to | 8.67 | 1,713,165 | - | 0.25 | to | 0.55 | 1.24 | to | 1.55 | ||||||||||||||||
| 2020 | 198,887 | 8.09 | to | 8.54 | 1,629,179 | - | 0.25 | to | 0.55 | 45.09 | to | 45.52 | ||||||||||||||||
| 2019 | 189,676 | 5.58 | to | 5.87 | 1,065,022 | - | 0.25 | to | 0.55 | 40.92 | to | 41.35 | ||||||||||||||||
| MFS® Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 588,832 | - | - | 1.04 | 611,859 | 2.04 | - | - | 0.60 | - | - | 7.93 | ||||||||||||||||
| 2022 | 173,491 | - | - | 0.96 | 167,026 | 1.25 | - | - | 0.60 | - | - | (5.91 | ) | |||||||||||||||
| MML Aggressive Allocation Division6 | ||||||||||||||||||||||||||||
| 2023 | 85,116 | - | - | 1.02 | 86,393 | 2.81 | - | - | 0.60 | - | - | 18.32 | ||||||||||||||||
| 2022 | 37,587 | - | - | 0.86 | 32,245 | 2.17 | - | - | 0.60 | - | - | (15.90 | ) | |||||||||||||||
| MML American Funds Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 312,749 | - | - | 0.99 | 308,298 | 1.30 | - | - | 0.60 | - | - | 37.96 | ||||||||||||||||
| 2022 | 197,587 | - | - | 0.71 | 141,183 | 0.46 | - | - | 0.60 | - | - | (30.29 | ) | |||||||||||||||
| MML Balanced Allocation Division6 | ||||||||||||||||||||||||||||
| 2023 | 8,579 | - | - | 0.97 | 8,320 | 0.73 | - | - | 0.60 | - | - | 12.47 | ||||||||||||||||
| 2022 | 106,143 | - | - | 0.86 | 91,521 | 4.47 | - | - | 0.60 | - | - | (14.73 | ) | |||||||||||||||
| MML Blend Division | ||||||||||||||||||||||||||||
| 2023 | 5,197,567 | 3.63 | to | 4.04 | 19,502,262 | 1.70 | 0.25 | to | 0.55 | 16.97 | to | 17.32 | ||||||||||||||||
| 2022 | 5,365,568 | 3.10 | to | 3.44 | 17,184,867 | 1.36 | 0.25 | to | 0.55 | (17.05 | ) | to | (16.80 | ) | ||||||||||||||
| 2021 | 5,593,994 | 3.74 | to | 4.13 | 21,565,470 | 2.11 | 0.25 | to | 0.55 | 14.39 | to | 14.74 | ||||||||||||||||
| 2020 | 5,888,589 | 3.27 | to | 3.60 | 19,854,871 | - | 0.25 | to | 0.55 | 12.25 | to | 12.58 | ||||||||||||||||
| 2019 | 6,148,181 | 2.91 | to | 3.20 | 18,443,353 | 2.43 | 0.25 | to | 0.55 | 20.72 | to | 21.08 | ||||||||||||||||
| MML Blue Chip Growth Division | ||||||||||||||||||||||||||||
| 2023 | 2,044,164 | 0.91 | to | 4.39 | 6,421,821 | - | 0.25 | to | 0.60 | 49.16 | to | 49.53 | ||||||||||||||||
| 2022 | 2,081,871 | 2.05 | to | 2.94 | 4,393,641 | - | 0.25 | to | 0.55 | (39.83 | ) | to | (39.65 | ) | ||||||||||||||
| 2021 | 2,198,892 | 3.40 | to | 4.88 | 7,706,004 | - | 0.25 | to | 0.55 | 15.70 | to | 16.05 | ||||||||||||||||
| 2020 | 2,293,703 | 2.94 | to | 4.20 | 6,938,832 | - | 0.25 | to | 0.55 | 33.67 | to | 34.07 | ||||||||||||||||
| 2019 | 2,449,014 | 2.20 | to | 3.14 | 5,530,604 | - | 0.25 | to | 0.55 | 29.13 | to | 29.52 | ||||||||||||||||
| MML Conservative Allocation Division6 | ||||||||||||||||||||||||||||
| 2023 | 22,875 | - | - | 0.96 | 21,961 | 4.71 | - | - | 0.60 | - | - | 11.66 | ||||||||||||||||
| 2022 | 5,000 | - | - | 0.86 | 4,299 | 4.13 | - | - | 0.60 | - | - | (14.74 | ) | |||||||||||||||
| MML Dynamic Bond Division6 | ||||||||||||||||||||||||||||
| 2023 | 8,676 | - | - | 0.93 | 8,059 | 6.08 | - | - | 0.60 | - | - | 7.99 | ||||||||||||||||
| 2022 | 4,418 | - | - | 0.86 | 3,801 | 4.01 | - | - | 0.60 | - | - | (13.98 | ) | |||||||||||||||
| MML Equity Division | ||||||||||||||||||||||||||||
| 2023 | 12,417,944 | 1.07 | to | 3.70 | 42,224,713 | 2.11 | 0.25 | to | 0.60 | 9.05 | to | 9.32 | ||||||||||||||||
| 2022 | 13,196,820 | 3.08 | to | 3.39 | 41,303,532 | 1.62 | 0.25 | to | 0.55 | (5.17 | ) | to | (4.88 | ) | ||||||||||||||
| 2021 | 13,695,916 | 3.25 | to | 3.56 | 45,209,185 | 1.66 | 0.25 | to | 0.55 | 29.55 | to | 29.94 | ||||||||||||||||
| 2020 | 14,662,278 | 2.51 | to | 2.74 | 37,318,429 | 2.33 | 0.25 | to | 0.55 | 2.46 | to | 2.77 | ||||||||||||||||
| 2019 | 15,654,868 | 2.45 | to | 2.67 | 38,922,493 | 2.05 | 0.25 | to | 0.55 | 25.23 | to | 25.61 | ||||||||||||||||
| MML Equity Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 80,077 | - | - | 1.09 | 87,052 | 2.27 | - | - | 0.60 | - | - | 9.54 | ||||||||||||||||
| F-76 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| MML Equity Index Division | ||||||||||||||||||||||||||||
| 2023 | 11,999,022 | $ | 4.97 | to | $ | 5.88 | $ | 59,220,858 | 1.40 | % | 0.25 | % | to | 0.55 | % | 25.24 | % | to | 25.61 | % | ||||||||
| 2022 | 12,677,806 | 3.97 | to | 4.68 | 49,911,583 | 1.24 | 0.25 | to | 0.55 | (18.80 | ) | to | (18.55 | ) | ||||||||||||||
| 2021 | 13,438,070 | 4.89 | to | 5.75 | 64,913,639 | 1.43 | 0.25 | to | 0.55 | 27.67 | to | 28.05 | ||||||||||||||||
| 2020 | 14,122,463 | 3.83 | to | 4.49 | 53,409,222 | 1.86 | 0.25 | to | 0.55 | 17.57 | to | 17.92 | ||||||||||||||||
| 2019 | 14,958,794 | 3.26 | to | 3.81 | 48,088,655 | 2.92 | 0.25 | to | 0.55 | 30.34 | to | 30.73 | ||||||||||||||||
| MML Focused Equity Division6 | ||||||||||||||||||||||||||||
| 2023 | 56,573 | - | - | 1.07 | 60,558 | 0.97 | - | - | 0.60 | - | - | 9.88 | ||||||||||||||||
| MML Foreign Division6 | ||||||||||||||||||||||||||||
| 2023 | 87,192 | - | - | 1.03 | 89,474 | 1.50 | - | - | 0.60 | - | - | 16.22 | ||||||||||||||||
| 2022 | 59,319 | - | - | 0.88 | 52,376 | 3.92 | - | - | 0.60 | - | - | (14.58 | ) | |||||||||||||||
| MML Global Division6 | ||||||||||||||||||||||||||||
| 2023 | 16,979 | - | - | 0.96 | 16,319 | 0.85 | - | - | 0.60 | - | - | 14.08 | ||||||||||||||||
| 2022 | 19,572 | - | - | 0.84 | 16,489 | 2.48 | - | - | 0.60 | - | - | (18.00 | ) | |||||||||||||||
| MML Growth Allocation Division6 | ||||||||||||||||||||||||||||
| 2023 | 235,054 | - | - | 1.00 | 234,861 | 2.89 | - | - | 0.60 | - | - | 15.98 | ||||||||||||||||
| 2022 | 169,001 | - | - | 0.86 | 145,598 | 4.61 | - | - | 0.60 | - | - | (15.30 | ) | |||||||||||||||
| MML Income & Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 60,476 | - | - | 1.12 | 67,514 | 1.92 | - | - | 0.60 | - | - | 9.19 | ||||||||||||||||
| 2022 | 62,250 | - | - | 1.02 | 63,645 | 1.49 | - | - | 0.60 | - | - | (0.31 | ) | |||||||||||||||
| MML Inflation-Protected and Income Division | ||||||||||||||||||||||||||||
| 2023 | 824,224 | 1.83 | to | 1.95 | 1,525,020 | 4.73 | 0.25 | to | 0.55 | 4.85 | to | 5.17 | ||||||||||||||||
| 2022 | 780,434 | 1.74 | to | 1.85 | 1,377,748 | 2.66 | 0.25 | to | 0.55 | (13.82 | ) | to | (13.56 | ) | ||||||||||||||
| 2021 | 780,377 | 2.02 | to | 2.14 | 1,598,174 | 1.05 | 0.25 | to | 0.55 | 5.82 | to | 6.13 | ||||||||||||||||
| 2020 | 809,571 | 1.91 | to | 2.02 | 1,567,317 | 0.11 | 0.25 | to | 0.55 | 10.51 | to | 10.84 | ||||||||||||||||
| 2019 | 815,083 | 1.73 | to | 1.82 | 1,426,208 | 2.44 | 0.25 | to | 0.55 | 7.72 | to | 8.04 | ||||||||||||||||
| MML Large Cap Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 77,676 | - | - | 1.11 | 85,949 | - | - | - | 0.60 | - | - | 51.71 | ||||||||||||||||
| 2022 | 52,920 | - | - | 0.73 | 38,599 | - | - | - | 0.60 | - | - | (27.55 | ) | |||||||||||||||
| MML Managed Bond Division | ||||||||||||||||||||||||||||
| 2023 | 3,600,784 | 0.90 | to | 2.58 | 8,414,738 | 3.99 | 0.25 | to | 0.60 | 6.43 | to | 6.70 | ||||||||||||||||
| 2022 | 3,574,803 | 2.19 | to | 2.43 | 8,063,734 | 3.10 | 0.25 | to | 0.55 | (15.47 | ) | to | (15.22 | ) | ||||||||||||||
| 2021 | 3,646,841 | 2.59 | to | 2.86 | 9,722,049 | 3.17 | 0.25 | to | 0.55 | 0.26 | to | 0.56 | ||||||||||||||||
| 2020 | 3,648,610 | 2.58 | to | 2.85 | 9,681,421 | 0.10 | 0.25 | to | 0.55 | 7.12 | to | 7.44 | ||||||||||||||||
| 2019 | 3,657,379 | 2.41 | to | 2.65 | 9,052,047 | 3.70 | 0.25 | to | 0.55 | 9.21 | to | 9.54 | ||||||||||||||||
| MML Managed Volatility Division | ||||||||||||||||||||||||||||
| 2023 | 736,150 | 2.32 | to | 2.49 | 1,783,242 | 0.58 | 0.25 | to | 0.55 | 12.26 | to | 12.59 | ||||||||||||||||
| 2022 | 772,465 | 2.07 | to | 2.21 | 1,663,432 | 0.48 | 0.25 | to | 0.55 | (12.53 | ) | to | (12.27 | ) | ||||||||||||||
| 2021 | 786,050 | 2.37 | to | 2.52 | 1,930,357 | 0.85 | 0.25 | to | 0.55 | 10.93 | to | 11.26 | ||||||||||||||||
| 2020 | 1,103,239 | 2.13 | to | 2.26 | 2,450,343 | 1.36 | 0.25 | to | 0.55 | 6.10 | to | 6.41 | ||||||||||||||||
| 2019 | 1,173,098 | 2.01 | to | 2.13 | 2,450,638 | 1.55 | 0.25 | to | 0.55 | 11.28 | to | 11.62 | ||||||||||||||||
| MML Mid Cap Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 188,351 | - | - | 0.94 | 177,385 | - | - | - | 0.60 | - | - | 22.64 | ||||||||||||||||
| 2022 | 69,499 | - | - | 0.77 | 53,370 | - | - | - | 0.60 | - | - | (25.11 | ) | |||||||||||||||
| MML Mid Cap Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 79,704 | - | - | 1.08 | 86,007 | 2.59 | - | - | 0.60 | - | - | 5.97 | ||||||||||||||||
| F-77 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| MML Moderate Allocation Division6 | ||||||||||||||||||||||||||||
| 2023 | 55,065 | $ | - | - | $ | 0.98 | $ | 54,076 | 3.12 | % | - | % | - | 0.60 | % | - | % | - | 13.90 | % | ||||||||
| 2022 | 41,779 | - | - | 0.86 | 36,023 | 3.48 | - | - | 0.60 | - | - | (14.97 | ) | |||||||||||||||
| MML Short-Duration Bond Division6 | ||||||||||||||||||||||||||||
| 2023 | 20,969 | - | - | 0.99 | 20,678 | 4.69 | - | - | 0.60 | - | - | 6.94 | ||||||||||||||||
| 2022 | 4,303 | - | - | 0.92 | 3,967 | 3.45 | - | - | 0.60 | - | - | (7.79 | ) | |||||||||||||||
| MML Small Cap Equity Division | ||||||||||||||||||||||||||||
| 2023 | 2,722,252 | 1.02 | to | 5.63 | 16,842,706 | 1.29 | 0.25 | to | 0.60 | 17.52 | to | 17.81 | ||||||||||||||||
| 2022 | 2,727,693 | 4.79 | to | 5.50 | 14,569,026 | 0.71 | 0.25 | to | 0.55 | (16.34 | ) | to | (16.09 | ) | ||||||||||||||
| 2021 | 2,813,218 | 5.71 | to | 6.58 | 18,003,983 | 0.43 | 0.25 | to | 0.55 | 22.08 | to | 22.45 | ||||||||||||||||
| 2020 | 3,051,892 | 4.66 | to | 5.39 | 15,989,571 | 0.54 | 0.25 | to | 0.55 | 20.03 | to | 20.39 | ||||||||||||||||
| 2019 | 3,218,346 | 3.87 | to | 4.49 | 14,044,785 | 0.47 | 0.25 | to | 0.55 | 25.77 | to | 26.15 | ||||||||||||||||
| MML Small Cap Growth Equity Division | ||||||||||||||||||||||||||||
| 2023 | 2,345,006 | 0.93 | to | 5.67 | 7,815,423 | - | 0.25 | to | 0.60 | 16.55 | to | 16.84 | ||||||||||||||||
| 2022 | 2,077,144 | 3.63 | to | 4.86 | 6,638,520 | - | 0.25 | to | 0.55 | (23.58 | ) | to | (23.35 | ) | ||||||||||||||
| 2021 | 1,727,118 | 4.75 | to | 6.34 | 8,407,549 | - | 0.25 | to | 0.55 | 6.72 | to | 7.04 | ||||||||||||||||
| 2020 | 1,763,635 | 4.45 | to | 5.93 | 8,040,806 | - | 0.25 | to | 0.55 | 34.88 | to | 35.28 | ||||||||||||||||
| 2019 | 1,911,001 | 3.30 | to | 4.38 | 6,452,654 | - | 0.25 | to | 0.55 | 33.59 | to | 33.99 | ||||||||||||||||
| MML Strategic Emerging Markets Division6 | ||||||||||||||||||||||||||||
| 2023 | 15,538 | - | - | 0.81 | 12,640 | 0.11 | - | - | 0.60 | - | - | 10.47 | ||||||||||||||||
| MML Total Return Bond Division6 | ||||||||||||||||||||||||||||
| 2023 | 35,825 | - | - | 0.90 | 32,192 | 2.73 | - | - | 0.60 | - | - | 5.45 | ||||||||||||||||
| 2022 | 10,646 | - | - | 0.85 | 9,073 | 2.14 | - | - | 0.60 | - | - | (14.70 | ) | |||||||||||||||
| MML U.S. Government Money Market Division | ||||||||||||||||||||||||||||
| 2023 | 11,058,708 | 1.06 | to | 1.44 | 13,469,550 | 4.52 | 0.25 | to | 0.60 | 4.38 | to | 4.64 | ||||||||||||||||
| 2022 | 6,738,678 | 1.25 | to | 1.38 | 8,366,620 | 1.15 | 0.25 | to | 0.55 | 0.66 | to | 0.97 | ||||||||||||||||
| 2021 | 6,554,870 | 1.24 | to | 1.36 | 8,229,386 | - | 0.25 | to | 0.55 | (0.55 | ) | to | (0.24 | ) | ||||||||||||||
| 2020 | 7,052,178 | 1.24 | to | 1.37 | 8,882,862 | 0.20 | 0.25 | to | 0.55 | (0.32 | ) | to | (0.02 | ) | ||||||||||||||
| 2019 | 5,709,215 | 1.25 | to | 1.37 | 7,218,814 | 1.69 | 0.25 | to | 0.55 | 1.15 | to | 1.45 | ||||||||||||||||
| PIMCO Global Bond Opportunities Division (Unhedged)6 | ||||||||||||||||||||||||||||
| 2023 | 77,083 | - | - | 0.94 | 72,553 | 2.25 | - | - | 0.60 | - | - | 5.26 | ||||||||||||||||
| 2022 | 80,102 | - | - | 0.89 | 71,625 | 1.15 | - | - | 0.60 | - | - | (11.01 | ) | |||||||||||||||
| PIMCO High Yield Division6 | ||||||||||||||||||||||||||||
| 2023 | 51,386 | - | - | 1.02 | 52,173 | 2.40 | - | - | 0.60 | - | - | 12.25 | ||||||||||||||||
| PIMCO Real Return Division6 | ||||||||||||||||||||||||||||
| 2023 | 4,846 | - | - | 0.92 | 4,479 | 2.91 | - | - | 0.60 | - | - | 3.67 | ||||||||||||||||
| 2022 | 1,762 | - | - | 0.89 | 1,571 | 2.87 | - | - | 0.60 | - | - | (11.91 | ) | |||||||||||||||
| PIMCO Total Return Division6 | ||||||||||||||||||||||||||||
| 2023 | 26,526 | - | - | 0.91 | 24,086 | 3.55 | - | - | 0.60 | - | - | 5.94 | ||||||||||||||||
| 2022 | 15,857 | - | - | 0.86 | 13,592 | 1.54 | - | - | 0.60 | - | - | (14.31 | ) | |||||||||||||||
| T. Rowe Price Blue Chip Growth Division | ||||||||||||||||||||||||||||
| 2023 | 725,361 | 7.90 | to | 8.41 | 5,839,884 | - | 0.25 | to | 0.55 | 48.47 | to | 48.92 | ||||||||||||||||
| 2022 | 739,801 | 5.32 | to | 5.65 | 4,008,886 | - | 0.25 | to | 0.55 | (38.84 | ) | to | (38.66 | ) | ||||||||||||||
| 2021 | 765,546 | 8.70 | to | 9.21 | 6,779,214 | - | 0.25 | to | 0.55 | 16.98 | to | 17.33 | ||||||||||||||||
| 2020 | 885,192 | 7.44 | to | 7.85 | 6,711,833 | - | 0.25 | to | 0.55 | 33.54 | to | 33.94 | ||||||||||||||||
| 2019 | 888,438 | 5.57 | to | 5.86 | 5,038,063 | - | 0.25 | to | 0.55 | 29.18 | to | 29.56 | ||||||||||||||||
| F-78 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| At December 31, | For the Years Ended December 31, | |||||||||||||||||||||||||||
| Investment | ||||||||||||||||||||||||||||
| Unit Value3 | Income | Expense Ratio2 | Total Return3 | |||||||||||||||||||||||||
| Units | (Lowest to Highest) | Net Assets | Ratio1 | (Lowest to Highest) | (Lowest to Highest) | |||||||||||||||||||||||
| T. Rowe Price Equity Income Division | ||||||||||||||||||||||||||||
| 2023 | 1,507,231 | $ | 4.77 | to | $ | 5.07 | $ | 7,337,651 | 2.10 | % | 0.25 | % | to | 0.55 | % | 8.94 | % | to | 9.27 | % | ||||||||
| 2022 | 1,620,257 | 4.38 | to | 4.64 | 7,235,090 | 1.89 | 0.25 | to | 0.55 | (3.87 | ) | to | (3.58 | ) | ||||||||||||||
| 2021 | 1,533,421 | 4.55 | to | 4.82 | 7,109,686 | 1.56 | 0.25 | to | 0.55 | 24.86 | to | 25.24 | ||||||||||||||||
| 2020 | 1,625,637 | 3.65 | to | 3.85 | 6,023,493 | 2.36 | 0.25 | to | 0.55 | 0.63 | to | 0.93 | ||||||||||||||||
| 2019 | 1,608,988 | 3.62 | to | 3.81 | 5,920,017 | 2.30 | 0.25 | to | 0.55 | 25.71 | to | 26.08 | ||||||||||||||||
| T. Rowe Price Limited-Term Bond Division6 | ||||||||||||||||||||||||||||
| 2023 | 965 | - | - | 1.00 | 967 | 3.22 | - | - | 0.60 | - | - | 4.95 | ||||||||||||||||
| 2022 | 470 | - | - | 0.96 | 449 | 1.94 | - | - | 0.60 | - | - | (4.52 | ) | |||||||||||||||
| T. Rowe Price Mid-Cap Growth Division | ||||||||||||||||||||||||||||
| 2023 | 6,188,322 | 10.12 | to | 11.29 | 61,055,675 | - | 0.25 | to | 0.55 | 19.30 | to | 19.66 | ||||||||||||||||
| 2022 | 6,602,436 | 8.48 | to | 9.44 | 54,630,553 | - | 0.25 | to | 0.55 | (23.00 | ) | to | (22.77 | ) | ||||||||||||||
| 2021 | 6,954,914 | 11.02 | to | 12.22 | 74,689,436 | - | 0.25 | to | 0.55 | 14.22 | to | 14.56 | ||||||||||||||||
| 2020 | 7,370,682 | 9.65 | to | 10.67 | 69,088,919 | - | 0.25 | to | 0.55 | 23.13 | to | 23.50 | ||||||||||||||||
| 2019 | 7,890,891 | 7.84 | to | 8.64 | 60,043,741 | 0.13 | 0.25 | to | 0.55 | 30.57 | to | 30.96 | ||||||||||||||||
| Templeton Foreign VIP Division | ||||||||||||||||||||||||||||
| 2023 | 2,313,100 | 1.96 | to | 2.23 | 4,681,550 | 3.23 | 0.25 | to | 0.55 | 20.10 | to | 20.46 | ||||||||||||||||
| 2022 | 2,303,149 | 1.63 | to | 1.86 | 3,880,577 | 3.04 | 0.25 | to | 0.55 | (8.11 | ) | to | (7.84 | ) | ||||||||||||||
| 2021 | 2,238,912 | 1.77 | to | 2.01 | 4,092,397 | 1.85 | 0.25 | to | 0.55 | 3.59 | to | 3.90 | ||||||||||||||||
| 2020 | 2,227,458 | 1.71 | to | 1.94 | 3,928,060 | 3.38 | 0.25 | to | 0.55 | (1.70 | ) | to | (1.40 | ) | ||||||||||||||
| 2019 | 2,414,470 | 1.74 | to | 1.96 | 4,322,882 | 1.74 | 0.25 | to | 0.55 | 11.91 | to | 12.25 | ||||||||||||||||
| Templeton Global Bond VIP Division6 | ||||||||||||||||||||||||||||
| 2023 | 8,173 | - | - | 0.98 | 8,048 | - | - | - | 0.60 | - | - | 3.19 | ||||||||||||||||
| 2022 | 4,252 | - | - | 0.95 | 4,057 | - | - | - | 0.60 | - | - | (4.85 | ) | |||||||||||||||
| Vanguard VIF Balanced Division6 | ||||||||||||||||||||||||||||
| 2023 | 84,833 | - | - | 0.99 | 84,270 | 1.18 | - | - | 0.60 | - | - | 14.33 | ||||||||||||||||
| 2022 | 12,456 | - | - | 0.87 | 10,823 | 0.43 | - | - | 0.60 | - | - | (14.30 | ) | |||||||||||||||
| Vanguard VIF Capital Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 120,947 | - | - | 1.11 | 134,373 | 1.14 | - | - | 0.60 | - | - | 27.98 | ||||||||||||||||
| 2022 | 57,447 | - | - | 0.87 | 49,870 | 0.90 | - | - | 0.60 | - | - | (15.49 | ) | |||||||||||||||
| Vanguard VIF Diversified Value Division6 | ||||||||||||||||||||||||||||
| 2023 | 86,592 | - | - | 1.08 | 93,789 | 1.29 | - | - | 0.60 | - | - | 20.13 | ||||||||||||||||
| 2022 | 62,345 | - | - | 0.90 | 56,214 | - | - | - | 0.60 | - | - | (11.49 | ) | |||||||||||||||
| Vanguard VIF Equity Income Division6 | ||||||||||||||||||||||||||||
| 2023 | 303,023 | - | - | 1.11 | 335,157 | 2.93 | - | - | 0.60 | - | - | 8.10 | ||||||||||||||||
| 2022 | 160,794 | - | - | 1.02 | 164,523 | 1.29 | - | - | 0.60 | - | - | (0.66 | ) | |||||||||||||||
| Vanguard VIF Growth Division6 | ||||||||||||||||||||||||||||
| 2023 | 11,286 | - | - | 0.94 | 10,619 | - | - | - | 0.60 | - | - | 40.14 | ||||||||||||||||
| Vanguard VIF International Division6 | ||||||||||||||||||||||||||||
| 2023 | 135,773 | - | - | 0.81 | 110,506 | 1.48 | - | - | 0.60 | - | - | 14.65 | ||||||||||||||||
| Vanguard VIF Real Estate Index Division6 | ||||||||||||||||||||||||||||
| 2023 | 41,678 | - | - | 0.86 | 35,916 | 2.25 | - | - | 0.60 | - | - | 11.70 | ||||||||||||||||
| 2022 | 26,504 | - | - | 0.77 | 20,448 | 0.32 | - | - | 0.60 | - | - | (26.30 | ) | |||||||||||||||
| Vanguard VIF Short-Term Investment-Grade Division6 | ||||||||||||||||||||||||||||
| 2023 | 79,027 | - | - | 1.00 | 79,167 | 1.27 | - | - | 0.60 | - | - | 6.16 | ||||||||||||||||
| 2022 | 40,221 | - | - | 0.94 | 37,954 | - | - | - | 0.60 | - | - | (5.72 | ) | |||||||||||||||
| F-79 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
1 The investment income ratios represent the dividends, excluding distributions of capital gains, received by the division/sub-account from the underlying mutual fund, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against policy owner accounts either through reductions in the unit values or the redemption of units. The recognition of investment income by the division/sub-account is affected by the timing of the declaration of dividends by the underlying fund in which the division/sub-account invests.
2 The expense ratios represent the annualized policy expense of the divisions of the Separate Account, consisting primarily of mortality and expense charges, for each period indicated. The ratios include only those expenses that result in a direct reduction of unit values. Charges made directly to policy owner accounts through the redemption of units and expenses of the underlying fund have been excluded.
3 The total returns are for the periods indicated, including changes in the value of the underlying fund, and the expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of units. Investment options with a date notation indicate the effective date of that investment option in the variable account. The total return is calculated for each period indicated or from the effective date through the end of the reporting period. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum expense ratio amounts, some individual policy total returns and unit values are not within the ranges presented.
4 See Note 2 to the financial statements for the previous name of this division.
5 After the close of business on April 29, 2022, Invesco V.I. Core Plus Bond Fund acquired all the net assets of Invesco V.I. Core Bond Fund pursuant to a plan of reorganization approved by the Board of Trustees of the Invesco V.I. Core Plus Bond Fund on December 1, 2021 and by the shareholders of the Invesco V.I. Core Bond Fund on March 31, 2022. The acquisition was accomplished by a tax-free exchange as of the close of business on April 29, 2022. Shares of Invesco V.I. Core Bond Fund were exchanged for the like class of shares of Invesco V.I. Core Plus Bond Fund, based on the relative net asset value of the two funds which resulted in Invesco V.I. Core Bond Fund receiving 1.15816327 shares of Invesco V.I. Core Plus Bond Fund in exchange of 1 share of Invesco V.I Core Bond Fund. As a result of the underlying fund merger, the division name changed from Invesco V.I. Core Bond to Invesco V.I. Core Plus Bond. Financial highlights for the years 2018-2021 correspond to the Invesco V.I. Core Bond Division.
6 This Division/Fund became available to the Separate Account as an investment option on December 13, 2021, but it is presented from the year when the investment or unit activity has been started.
| B. | The separate account assesses “current” charges associated with each policy. These charges are either assessed as a direct reduction in unit values or through a redemption of units for all policies contained within the Separate Account. Charges shown below state charges assessed at a monthly rate unless otherwise specified. |
| Administrative Charge | Effective annual rate of 0.25% of the policy’s average daily net assets |
| This charge is assessed through a reduction in unit values. | in the Separate Account |
| Administrative Charge | $5 to $12 per month |
| This charge is assessed through a redemption of units. | |
| Mortality and Expense Risk Charge | Effective annual rate of 0.25% - 0.65% of the policy’s |
| This charge is assessed through a reduction in unit values | assets held in the Separate Account. |
| or through the redemption of units. | |
| Face Amount Charge | $0.00 to $0.17 per $1,000 of face amount or charge is based |
| This charge is assessed through a redemption of units. | on the initial selected face amount of the Policy |
| Insurance Charge/Cost of Insurance Charge | $0.00 to $70.83 per $1,000 of insurance risk |
| This charge is assessed through a redemption of units. | |
| Additional Mortality Fees | $0.00 to $83.33 per $1,000 of insurance risk |
| This charge is assessed through a redemption of units. | $0.08 to $83.33 per $1,000 of face amount |
| Loan Interest Rate Expense Charge | Effective annual rate of 0.00% to 1.50% of the loan amount |
| This charge is assessed through a redemption of units. |
| F-80 |
Notes To Financial Statements (Continued)
| 8. | FINANCIAL HIGHLIGHTS (Continued) |
| Rider Charges: | |
| The rider charges do not apply to all segments within the Separate Account. | |
| These charges are assessed through the redemption of units. | |
| A. Disability Benefit | $0.01 to $0.26 per $1 of monthly deductions |
| $0.00 to $0.09318 per $1,000 of insurance risk | |
| B. Guaranteed Insurability | $0.03 to $0.11 per $1,000 of option amount |
| C. Other Insured | $0.03 to $25.01 per $1,000 of insurance risk |
| D. Waiver of Monthly Charges | $0.01 to $0.26 per $1 of monthly deductions |
| E. Estate Protection | $0.00 to $14.97 per $1,000 of insurance risk |
| F. Survivorship Term | $0.00 to $23.52 per $1,000 of insurance risk |
| $0.00 to $0.04 per $1,000 of face amount | |
| G. Additional Mortality Fees | $0.00 to $83.33 per $1,000 of face amount |
| H. Term Rider | $0.00 to $31.33 per $1,000 of insurance risk |
| 9. | SUBSEQUENT EVENTS |
The Separate Account’s management has reviewed events occurring through March 7, 2024, the date the financial statements were issued, and no subsequent events occurred requiring accrual or disclosure.
| F-81 |
PART
C
OTHER INFORMATION
Item 30. Exhibits
Exhibit (a) |
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Exhibit (b) |
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Exhibit (c) |
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Exhibit (d) |
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Exhibit (f) |
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Exhibit (g) |
Reinsurance Contracts |
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American United Life Insurance Company |
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Lincoln National Life Insurance Company |
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Munich American Reassurance Company |
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Amendment effective January 1, 2022 – Incorporated by reference to Post-Effective Amendment No. 35 to Registration Statement File No. 333-22557 filed on or about April 25, 2024 |
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RGA Reinsurance Company |
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Exhibit (h) |
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Participation, Selling, Servicing Agreements: |
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AIM Funds (Invesco Funds) |
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Amendment No. 5 dated as of April 2, 2024 - Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement File No. 333-259818 filed on or about April 25, 2024 |
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Amendment to Participation Agreement dated as of June 25, 2021 – Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement File No. 333-259818 filed on or about April 25, 2024 |
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Amendment No. 11 effective July 25, 2023 – Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement File No. 333-259818 filed on or about April 25, 2024 |
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Amendment No. 7 dated July 25, 2023 – Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement File No. 333-259818 filed on or about April 25, 2024 |
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Goldman Sachs Funds |
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| i. | Lincoln Funds | ||||
| 1. | Fund Participation Agreement as of May 1, 2023 (Lincoln Variable Insurance Products Trust, Lincoln Financial Distributors, Inc., Lincoln Investment Advisors Corporation, Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company) - Incorporated by reference to Post-Effective Amendment No. 13 to Registration Statement No. 333-215823 filed April 25, 2023 | ||||
| i. | Amendment effective April 29, 2024 - Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement No. 333-259818 filed on or about April 25, 2024 | ||||
| 2. | Administrative Services Agreement as of May 1, 2023 (Lincoln Investment Advisors Corporation, Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company) - Incorporated by reference to Post-Effective Amendment No. 13 to Registration Statement No. 333-215823 filed April 25, 2023 | ||||
| i. | First Amendment to Administrative Services Agreement effective April 29, 2024 - Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement No. 333-259818 filed on or about April 25, 2024 | ||||
| 3. | Distribution Services Agreement as of April 29, 2024 (Lincoln Financial Distributors, Inc., MML Investors Services, LLC and MML Strategic Distributors, LLC) - Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement No. 333-259818 filed on or about April 25, 2024 | ||||
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T. Rowe Price Funds |
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2. |
Administrative Fee Letter Agreement effective May 1, 2024 (T. Rowe Price Services, Inc. and Massachusetts Mutual Life Insurance Company) – Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement No. 333-259818 filed on or about April 25, 2024 |
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Supplement to the Variable Insurance Portfolio Administrative Fee Agreement dated May 1, 2024 (T. Rowe Price Associates, Inc. and Massachusetts Mutual Life Insurance Company) – Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement No. 333-259818 filed on or about April 25, 2024 |
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Shareholder Information Agreements (Rule 22c-2 Agreements) |
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Exhibit (i) |
Not Applicable |
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Exhibit (j) |
Not Applicable |
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Exhibit (k) |
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Exhibit (l) |
Not Applicable |
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Exhibit (m) |
Not Applicable |
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Exhibit (n) |
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• |
Company Financial Statements (*) |
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Separate Account Financial Statements (*) |
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ii. |
a. |
Powers of Attorney for: |
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Roger W. Crandall |
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Michael J. O’Connor |
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Paul LaPiana |
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Elizabeth A. Ward |
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– Incorporated by reference to Initial Registration Statement 333-274306 filed September 1, 2023 |
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| b. | Power of Attorney for Keith McDonagh | ||||||
| – Incorporated by reference to Post-Effective Amendment No. 3 to Registration Statement File No. 333-259818 filed on or about April 25, 2024 | |||||||
Exhibit (o) |
Not Applicable |
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Exhibit (p) |
Not Applicable |
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Exhibit (q) |
SEC Procedures Memorandum dated April 29, 2024, describing Massachusetts Mutual Life Insurance Company issuance, transfer, and redemption procedures for the Policy – Incorporated by reference to Post-Effective Amendment No. 10 to Registration Statement File No. 333-229670 filed on or about April 25, 2024 |
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| (*) | filed herewith |
Item 31. Directors and Officers of the Depositor
Directors of C.M. Life Insurance Company
Roger
W. Crandall, Director (Chairman), President, |
Paul LaPiana, Director and Executive Vice President |
Principal Officers of C.M. Life Insurance Company (other than those who are also Directors, as referenced above):
Keith McDonagh, Corporate Controller |
Julieta
Sinisgalli, Treasurer |
Item 32. Persons Controlled by or Under Common Control with the Depositor or the Registrant
– Incorporated by reference to Item 32 on Form N-6 in Post-Effective Amendment No. 3 to Registration Statement File No. 333-259818 filed on or about April 25, 2024
Item 33. |
Indemnification |
C.M. Life directors and officers are indemnified under Article V of the by-laws of C.M. Life’s parent company, Massachusetts Mutual Life Insurance Company (“MassMutual”), as set forth below.
ARTICLE V. of the By-laws of MassMutual provides for indemnification of directors and officers as follows:
“ARTICLE V.
INDEMNIFICATION
Subject to limitations of law, the Company shall indemnify:
| (a) | each director, officer or employee; |
| (b) | any individual who serves at the request of the Company as a director, board member, committee member, partner, trustee, officer or employee of any foreign or domestic organization or any separate investment account; or |
| (c) | any individual who serves in any capacity with respect to any employee benefit plan, |
from and against all loss, liability and expense imposed upon or incurred by such person in connection with any threatened, pending or completed action, claim, suit, investigation or proceeding of any nature whatsoever, in which such person may be involved or with which he or she may be threatened to be involved, by reason of any alleged act, omission or otherwise while serving in any such capacity, whether such action, claim, suit, investigation or proceeding is civil, criminal, administrative, arbitrative, or investigative and/or formal or informal in nature. Indemnification shall be provided although the person no longer serves in such capacity and shall include protection for the person’s heirs and legal representatives.
Indemnities hereunder shall include, but not be limited to, all costs and reasonable counsel fees, fines, penalties, judgments or awards of any kind, and the amount of reasonable settlements, whether or not payable to the Company or to any of the other entities described in the preceding paragraph, or to the policyholders or security holders thereof.
Notwithstanding the foregoing, no indemnification shall be provided with respect to:
| (1) | any matter as to which the person shall have been adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his or her action was in the best interests of the Company or, to the extent that such matter relates to service with respect to any employee benefit plan, in the best interests of the participants or beneficiaries of such employee benefit plan; |
| (2) | any liability to any entity which is registered as an investment company under the Federal Investment Company Act of 1940 or to the security holders thereof, where the basis for such liability is willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of office; and |
| (3) | any action, claim or proceeding voluntarily initiated by any person seeking indemnification, unless such action, claim or proceeding had been authorized by the Board of Directors or unless such person’s indemnification is awarded by vote of the Board of Directors. |
In any matter disposed of by settlement or in the event of an adjudication which in the opinion of the General Counsel or his or her delegate does not make a sufficient determination of conduct which could preclude or permit indemnification in accordance with the preceding paragraphs (1), (2) and (3), the person shall be entitled to indemnification unless, as determined by the majority of the disinterested directors or in the opinion of counsel (who may be an officer of the Company or outside counsel employed by the Company), such person’s conduct was such as precludes indemnification under any of such paragraphs. The termination of any action, claim, suit, investigation or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent shall not, of itself, create a presumption that the person did not act in good faith and in a manner which he or she reasonably believed to be in the best interests of the Company.
The Company may at its option indemnify for expenses incurred in connection with any action or proceeding in advance of its final disposition, upon receipt of a satisfactory undertaking for repayment if it be subsequently determined that the person thus indemnified is not entitled to indemnification under this Article V.”
To provide certainty and more clarification regarding the indemnification provisions of the Bylaws set forth above, MassMutual has entered into indemnification agreements with certain officers who serve as a director of a subsidiary of MassMutual (a “Subsidiary Director”). Pursuant to the Agreements, MassMutual agrees to indemnify a Subsidiary Director, to the extent legally permissible, against (a) all expenses, judgments, fines and settlements (“Costs”), liabilities, and penalties paid in connection with a proceeding involving the Subsidiary Director because he or she is a director of a subsidiary of MassMutual if the Subsidiary Director (i) acted in good faith, (ii) reasonably believed the conduct was in the subsidiary’s best interest; (iii) had no reasonable cause to believe the conduct was unlawful (in a criminal proceeding); and, (iv) engaged in conduct for which the Subsidiary Director shall not be liable under MassMutual’s Charter or By-Law. MassMutual further agrees to indemnify a Subsidiary Director, to the extent permitted by law, against all Costs paid in connection with any proceeding (i) unless the Subsidiary Director breached a duty of loyalty, (ii) except for liability for acts or omissions not in good faith, involving intentional misconduct or a knowing violation of law, (iii) except for liability under Section 6.40 of Chapter 156D of Massachusetts Business Corporation Act (“MBCA”), or (iv) except for liability related to any transaction from which the Subsidiary Director derived an improper benefit. MassMutual will also indemnify a Subsidiary Director, to the fullest extent authorized by the MBCA, against all expenses to the extent the Subsidiary Director has been successful on the merits or in defense of any proceeding. If any court determines that despite an adjudication of liability to the relevant subsidiary that the Subsidiary Director is entitled to indemnification, MassMutual will indemnify the Subsidiary Director to the extent permitted by law. Subject to the Subsidiary Director’s obligation to pay MassMutual in the event that the Subsidiary Director is not entitled to indemnification, MassMutual will pay the expenses of the Subsidiary Director prior to a final determination as to whether the Subsidiary Director is entitled to indemnification.
Item 34. Principal Underwriters
|
(a) |
MML
Investors Services, LLC (“MMLIS”) acts as principal underwriter of the contracts/policies/certificates
sold by its registered representatives and MML Strategic Distributors, LLC (“MSD”) serves as principal
underwriter of the contracts/policies/certificates sold by registered representatives of other broker-dealers who have
entered into distribution agreements with MSD. Massachusetts Mutual Variable Life Separate Account I, Massachusetts Mutual Variable Annuity Separate Account 1, Massachusetts Mutual Variable Annuity Separate Account 2, Massachusetts Mutual Variable Annuity Separate Account 3, Massachusetts Mutual Variable Annuity Separate Account 4, Panorama Separate Account, Connecticut Mutual Variable Life Separate Account I, MML Bay State Variable Life Separate Account I, MML Bay State Variable Annuity Separate Account 1, Panorama Plus Separate Account, C.M. Multi-Account A, C.M. Life Variable Life Separate Account I, Massachusetts Mutual Variable Life Separate Account II. |
|
(b) |
MMLIS and MSD are the principal underwriters for this policy. The following people are officers and directors of MMLIS and officers and directors of MSD: |
DIRECTORS AND OFFICERS OF MML INVESTORS SERVICES, LLC
Name |
Positions and Offices |
Principal Business Address |
John Vaccaro |
Director, Chief Executive Officer, Chairman of the Board, and Agency Field Force Supervisor |
(*) |
Vaughn Bowman |
Director and President |
(*) |
Geoffrey Craddock |
Director |
10 Fan Pier Boulevard |
Paul LaPiana |
Director |
(*) |
Jennifer Reilly |
Director |
10 Fan Pier Boulevard |
David Mink |
Vice President and Chief Operations Officer |
11215
North Community House Rd. |
Frank Rispoli |
Chief Financial Officer and Treasurer |
(*) |
Edward K. Duch, III |
Chief Legal Officer, Vice President, and Secretary |
(*) |
Courtney Reid |
Chief Compliance Officer |
(*) |
James P. Puhala |
Deputy Chief Compliance Officer |
(*) |
Michael Gilliland |
Deputy Chief Compliance Officer |
(*) |
Thomas Bauer |
Chief Technology Officer |
(*) |
Anthony Frogameni |
Chief Privacy Officer |
(*) |
Linda Bestepe |
Vice President |
(*) |
Daken Vanderburg |
Vice President |
(*) |
Brian Foley |
Vice President |
(*) |
James Langham |
Vice President |
(*) |
Mary B. Wilkinson |
Vice President |
11215
North Community House Rd. |
David Holtzer |
Field Risk Officer |
11215
North Community House Rd. |
Amy Francella |
Assistant Secretary |
(*) |
Alyssa O’Connor |
Assistant Secretary |
(*) |
Pablo Cabrera |
Assistant Treasurer |
(*) |
Jeffrey Sajdak |
Assistant Treasurer |
(*) |
Julieta Sinisgalli |
Assistant Treasurer |
(*) |
Kevin Lacomb |
Assistant Treasurer |
(*) |
Tricia Cohen |
Continuing Education Officer |
(*) |
Mario Morton |
Registration Manager |
(*) |
Kelly Pirrotta |
AML Compliance Officer |
(*) |
John Rogan |
Regional Vice President |
(*) |
Michelle Pedigo |
Regional Vice President |
(*) |
| (*) | 1295 State Street, Springfield, MA 01111-0001 |
OFFICERS AND DIRECTORS OF MML STRATEGIC DISTRIBUTORS, LLC
Name |
Positions and Offices |
Principal Business Address |
Dominic Blue |
Director and Chairman of the Board |
(*) |
Matthew DiGangi |
Director and Chief Executive Officer and President |
(*) |
Geoffrey Craddock |
Director |
10 Fan Pier Boulevard |
Jennifer Reilly |
Director |
10 Fan Pier Boulevard Boston, MA 02210 |
Frank Rispoli |
Chief Financial Officer and Treasurer |
(*) |
Edward K. Duch, III |
Chief Legal Officer, Vice President, and Secretary |
(*) |
James P. Puhala |
Vice President and Chief Compliance Officer |
(*) |
Vincent Baggetta |
Chief Risk Officer |
(*) |
Paul LaPiana |
Vice President |
(*) |
Lisa Todd |
Vice President |
(*) |
Delphine Soucie |
Vice President |
(*) |
Alyssa O’Connor |
Assistant Secretary |
(*) |
Pablo Cabrera |
Assistant Treasurer |
(*) |
Jeffrey Sajdak |
Assistant Treasurer |
(*) |
Julieta Sinisgalli |
Assistant Treasurer |
(*) |
Mario Morton |
Registration Manager |
(*) |
Kelly Pirrotta |
AML Compliance Officer |
(*) |
| (*) | 1295 State Street, Springfield, MA 01111-0001 |
|
(c) |
Compensation
From the Registrant |
Item 35. Location of Accounts and Records
|
All accounts, books, or other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940 and the rules promulgated thereunder are maintained by the Registrant through Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, Massachusetts 01111-0001. |
Item 36. Management Services
|
Not Applicable. |
Item 37. Fee Representation
REPRESENTATION
UNDER SECTION 26(f)(2)(A) OF
THE
INVESTMENT COMPANY ACT OF 1940
C.M. Life Insurance Company hereby represents that the fees and charges deducted under the Variable Universal Life (“VUL”) policy described in this Registration Statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by C.M. Life Insurance Company.
SIGNATURES
Pursuant to the requirements of Securities Act of 1933 and the Investment Company Act of 1940, the Registrant certifies that it meets all of the requirements for effectiveness of this registration statement under Rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the City of Wilmington, and the State of North Carolina on this 24th day of April, 2024.
C.M.
LIFE VARIABLE LIFE SEPARATE ACCOUNT I
(Registrant)
C.M.
LIFE INSURANCE COMPANY
(Depositor)
By |
ROGER
W. CRANDALL* Roger
W. CrandallPresident and Chief Executive Officer (principal executive officer) C.M. Life Insurance Company |
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
Signature |
Title |
Date |
||
ROGER
W. CRANDALL * Roger
W. Crandall
|
|
Director,
President and Chief Executive Officer |
|
April 24, 2024 |
ELIZABETH
A. WARD * Elizabeth
A. Ward
|
Chief
Financial Officer |
April 24, 2024 |
||
KEITH MCDONAGH * Keith McDonagh
|
|
Corporate
Controller |
|
April 24, 2024 |
MICHAEL
J. O’CONNOR * Michael
J. O’Connor
|
Director |
April 24, 2024 |
||
PAUL LAPIANA *
Paul LaPiana
|
|
Director |
|
April 24, 2024 |
/s/ GARY F. MURTAGH * Gary F. MurtaghAttorney-in-Fact pursuant to Powers of Attorney |
INDEX TO EXHIBITS
Item No. |
Exhibit |
|||||
Item 30. |
Exhibit (n) |
i. |
Auditor Consents •
•
|
|||