<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No.
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940 X
Amendment No.
ACL VARIABLE ANNUITY ACCOUNT 1
___________________________________________________________________
(Exact Name of Registrant)
American Centurion Life Assurance Company
___________________________________________________________________
(Name of Depositor)
20 Madison Avenue Extension, Albany, NY 12203
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
(Name and Address of Agent for Service)
It is proposed that this filing will become effective: As soon as
practicable.
DECLARATION REQUIRED BY RULE 24f-2(a)(1)
An indefinite number of shares of securities of the Registrant is
being registered by this Registration Statement.
The Registrant hereby amends the Registration Statement under the
Securities Act of 1933 on such date or dates as may be necessary to
delay its effective date until the registrant shall file a further
amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the
Registration Statement shall become effective on such date as the
Commission acting pursuant to Section 8(a) may determine.
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CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus and
Statement of Additional Information of the information called for
by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus and Statement of
Additional Information are so indicated.
<TABLE>
<CAPTION>
PART A PART B
Section in
Section Statement of
Item No. in Prospectus Item No. Additional Information
<C> <C> <C> <C>
1 Cover page 15 Cover page
2 Key terms 16 Table of contents
3(a) Expense summary 17(a) NA
(b) The Annuity in brief (b) NA
(c) About American Centurion Life*
4(a) Condensed financial
information 18(a) NA
(b) Performance information (b) NA
(c) Financial statements (c) Independent auditors
(d) NA
5(a) Cover page; About (e) NA
American Centurion Life (f) NA
(b) The variable account
(c) The funds 19(a) Distribution of the contracts*
(d) Cover page; The funds About American Centurion Life*
(e) Voting rights (b) NA
(f) NA
(g) NA 20(a) Principal underwriter
(b) Principal underwriter
6(a) Charges (c) NA
(b) Charges (d) NA
(c) Charges
(d) NA 21(a) Performance information
(e) The funds (b) Performance information
(f) NA
22 Calculating Annuity Payouts
7(a) Buying your annuity;
Benefits in case of 23(a) NA
death; (b) NA
The annuity payout
period
(b) The variable account;
Making the most of your
annuity
(c) The funds; Charges
(d) Cover page
8(a) The annuity payout period
(b) Buying the annuity
(c) The annuity payout period
(d) The annuity payout period
(e) The annuity payout period
(f) The annuity payout period
9(a) Benefits in case of death
(b) Benefits in case of death
10(a) Buying your annuity;
Valuing your investment
(b) Valuing your investment
(c) Buying your annuity; Valuing
your investment
(d) About American Centurion Life
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11(a) Surrendering your contract
(b) NA
(c) Surrendering your contract
(d) Buying your annuity
(e) The annuity in brief
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the
Statement of Additional Information
*Designates section in the prospectus, which is hereby incorporated by reference
in this Statement of Additional Information.
</TABLE>
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Privileged Assets (registered trademark symbol) Select Annuity
Prospectus/date____________________
The Privileged Assets (registered trademark symbol) Select Annuity
is a flexible premium deferred fixed/variable annuity contract
offered by American Centurion Life Assurance Company (American
Centurion Life), a subsidiary of IDS Life Insurance Company (IDS
Life), which is a subsidiary of American Express Financial
Corporation. Purchase payments may be allocated among different
accounts, providing variable and/or fixed returns. Through the
subaccounts of the variable account, you can invest in mutual funds
that are managed to meet a variety of investment objectives. The
contract value will vary according to the investment performance of
the funds you select. You bear the entire investment risk under
the contract.
The annuity is available for non-qualified and certain qualified
retirement plans. The annuity offers tax-deferred asset
accumulation. This may be particularly attractive to investors in
high federal and state tax brackets who have made maximum
contributions to employer-sponsored retirement programs and IRAs.
The annuity has no front-end sales charge, nor does it have a
redemption or surrender charge.
The Privileged Assets Select Annuity is designed to allow you to
build up funds for retirement. When you need to access your money,
such as at retirement, you may do so in several ways including the
following: you may take a monthly fixed annuity payout for the
lifetime of the annuitant(s) you have designated, or you may take a
lump-sum or a fixed amount per month on the earnings on the
annuity.
ACL Variable Annuity Account 1
Sold by: American Centurion Life Assurance Company.
Service Office: 20 Madison Avenue Ext. Albany, NY 12203
Telephone: (518) 452-4150
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE
ACCOUNTS THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The
variable accounts" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE FOLLOWING
PROSPECTUSES: THE RETIREMENT ANNUITY MUTUAL FUND PROSPECTUS
(DESCRIBING IDS LIFE AGGRESSIVE GROWTH FUND, IDS LIFE INTERNATIONAL
EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS LIFE MANAGED FUND,
INC., IDS LIFE SPECIAL INCOME FUND, INC. AND IDS LIFE MONEYSHARE
FUND, INC.) AND THE INVESCO VARIABLE INVESTMENT FUNDS, INC.
PROSPECTUS (DESCRIBING INVESCO VIF-INDUSTRIAL INCOME PORTFOLIO).
PLEASE KEEP THESE PROSPECTUSES FOR FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR
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ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY
IS A CRIMINAL OFFENSE.
AMERICAN CENTURION LIFE IS NOT A FINANCIAL INSTITUTION, AND THE
SECURITIES IT OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY.
A Statement of Additional Information (SAI) dated ________________
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting American Centurion Life at the
telephone number above or by completing and sending the order form
on the last page of this prospectus. The table of contents of the
SAI is on the last page of this prospectus.
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Contents
Key terms.....................................................
The Privileged Assets (registered trademark symbol)
Select Annuity in brief....................................
Expense summary...............................................
Financial statements..........................................
Performance information.......................................
The variable account..........................................
The funds.....................................................
IDS Life Aggressive Growth Fund..........................
IDS Life International Equity Fund.......................
IDS Life Capital Resource Fund...........................
IDS Life Managed Fund....................................
IDS Life Special Income Fund.............................
IDS Life Moneyshare Fund.................................
INVESCO VIF-Industrial Income Portfolio..................
The fixed account.............................................
Buying your annuity...........................................
Setting the annuity start date...........................
Beneficiary..............................................
Minimum purchase payments................................
Three ways to make purchase payments.....................
Charges.......................................................
Contract administrative charge...........................
Mortality and expense risk fee...........................
Other information on charges.............................
Valuing your investment.......................................
Number of units..........................................
Accumulation unit value..................................
Net investment factor....................................
Factors that affect variable account
accumulation units....................................
Making the most of your annuity...............................
Automated dollar-cost averaging..........................
Transferring money between accounts......................
Transfer policies........................................
Two ways to request a transfer or a surrender............
Surrendering your contract....................................
Surrender policies.......................................
Receiving payment when you request a surrender...........
Changing ownership............................................
Benefits in case of death.....................................
The annuity payout period.....................................
Annuity payout plans.....................................
Death after annuity payouts begin........................
Taxes.........................................................
Voting rights.................................................
Substitution of investments...................................
Distribution of the contracts.................................
About American Centurion Life.................................
Regular and special reports...................................
Table of contents of the Statement of Additional
Information................................................
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Key terms
These terms can help you understand details about your annuity.
American Centurion Life - In this prospectus, "we," "us," "our" and
"American Centurion Life" refer to American Centurion Life
Assurance Company.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the contract owner's investment until
earnings are withdrawn, and that can be tailored to meet the
specific needs of the individual during retirement.
Accumulation unit - A measure of the value of each variable
subaccount before annuity payouts begin.
Annuitant - The person on whose life or life expectancy the payouts
are based.
Annuity payout - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount is paid on a fixed basis.
Annuity start date - The date when annuity payouts are scheduled to
begin. This date is established when you start your contract. As
your financial goals change, you may change the annuity start date.
Beneficiary - The person designated to receive annuity benefits in
case of the owner's or annuitant's death.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 4 p.m. Eastern time.
Code - Internal Revenue Code of 1986, as amended.
Contract value - Your total purchase payments, plus investment
return, less any contract administrative charges and prior
withdrawals.
Contract year - A period of 12 months, starting on the effective
date of your contract and on each anniversary of the effective
date.
Fixed account - An account to which you may allocate purchase
payments. Amounts allocated to this account earn interest at rates
that are declared periodically by American Centurion Life.
Mutual funds (funds) - Mutual funds or portfolios, each with a
different investment objective. (See "The funds.") You may
allocate your purchase payments into variable subaccounts investing
in shares of any or all of these funds.
Owner (you, your) - The person who controls the annuity (decides on
investment allocations, transfers, payout options, etc.) Usually,
but not always, the owner is also the annuitant. The owner is
responsible for taxes, regardless of whether he or she receives the
annuity's benefits.
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Purchase payments - Payments made to American Centurion Life for an
annuity.
Qualified annuity - An annuity purchased for a retirement plan
that is subject to applicable federal law and any rules of the plan
itself. These plans include:
o Individual Retirement Annuities (IRAs), including rollovers from
qualified plans
o Simplified Employee Pension (SEP) Plans
All other annuities are considered nonqualified annuities.
Surrender value - The amount you are entitled to receive if you
surrender your annuity. It is the contract value. No surrender
charge will apply.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable subaccount is
calculated at the close of business on each valuation date.
Variable account - An account consisting of separate subaccounts to
which you may allocate purchase payments; each invests in shares of
one mutual fund. (See "The variable account.") The value of your
investment in each variable subaccount changes with the performance
of the particular fund.
The Privileged Assets (registered trademark symbol) Select Annuity
in brief
Purpose: The Privileged Assets (registered trademark symbol)
Select Annuity is designed to allow you to build up funds for
retirement. You do this by making one or more investments
(purchase payments) that may earn returns that increase the value
of the annuity. Beginning at a specified future date (the annuity
start date), the annuity provides lifetime or other forms of
payouts to you or to anyone you designate.
Accounts: You may allocate your purchase payments among any or all
of:
o variable subaccounts, each of which invests in a mutual fund
with a particular investment objective. The value of each
variable subaccount varies with the performance of the
particular fund. Therefore, the contract value at the annuity
start date may be more or less than the total of purchase
payments allocated to the variable subaccounts. (p.)
o a fixed account, which earns interest at rates that are declared
periodically by American Centurion Life. The guaranteed minimum
interest rate is 3%. (p.)
Buying the annuity: You can purchase an annuity contract by
submitting a complete application. Applications are subject to
acceptance at our service office. You may buy a nonqualified
annuity or a qualified annuity. Payment may be made either in a
lump sum with the option of additional payments in the future or
installments:<PAGE>
PAGE 9
o Minimum purchase payment - $2,000 ($1,000 for qualified
annuities) unless you pay in installments by means of a bank
authorization or under a group billing arrangement at a rate of
$100/month or more or other payment plan acceptable to us.
o Minimum additional payment - $100.
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000. (p.)
Ten-day free look: You may return your contract for a refund
within 10 days after you receive it. The portion of your first
purchase payment allocated to the variable account must be invested
initially in the IDS Life Moneyshare subaccount for the period we
estimate or calculate your free look right to be in existence
(generally 15 days after the contract date or 25 days if you are
replacing an existing annuity).
If you choose not to keep your contract, return it to us within the
free look period. The contract will be canceled and we will refund
promptly the greater of (1) your purchase payment without
investment earnings, or (2) your contract value plus any amount
deducted from your payment prior to allocation to the variable
account or the fixed account.
Transfers: Subject to certain restrictions you may re-allocate
your money among accounts without charge at any time until annuity
payouts begin. You may establish automated transfers among the
fixed account and variable subaccount(s) and you may request a
transfer by telephone. (p.)
Surrenders: You may surrender all or part of your contract value at
any time before the annuity start date. You also may establish
systematic surrenders. There is no surrender charge. Amounts you
surrender may be taxable (and include a 10% penalty if surrenders
are made prior to your reaching age 59 1/2); and have other tax
consequences; also, certain restrictions apply. (p.)
Changing ownership: You may change ownership of a nonqualified
annuity by written instruction. However, such changes of
nonqualified annuities may have federal income tax consequences.
Certain restrictions apply concerning change of ownership of a
qualified annuity. (p.)
Payment in case of death: If you or the annuitant dies before
annuity payouts begin, we will pay the beneficiary the greater of
the contract value or total purchase payments made less partial
surrenders. (p.)
Annuity payouts: The contract value of your investment can be
applied to an annuity payout plan that begins on the annuity start
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. If you purchased a
qualified annuity, the payout schedule must meet requirements of
the qualified plan. Payouts will be made on a fixed basis. (p.)
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Taxes: Generally, your annuity grows tax-deferred until you
surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the income if
you are the owner. (p.)
Charges: Your Privileged Assets Select Annuity is subject to a $30
annual contract administrative charge, a 1% mortality and expense
risk charge against the variable subaccounts. (p.)
Expense summary
The purpose of this summary is to help you understand the various
costs and expenses associated with the Privileged Assets Select
Annuity.
You pay no sales charge when you purchase the Privileged Assets
Select Annuity nor do you pay a surrender charge if you surrender
your annuity. All costs that you bear directly or indirectly for
the variable subaccounts and underlying mutual funds are shown
below. Some expenses may vary as explained under "Contract
charges."
Direct charge. This charge is deducted directly from the contract
value.
Annual contract administrative charge: $30. If the total purchase
payments (less partial surrenders) is at least $10,000, we will
waive the charge.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable subaccounts' daily
accumulation unit value and are not charged directly to your
account. They include:
Mortality and expense risk fee: 1% per year, deducted from the
variable subaccounts as a percentage of the average daily net
assets of the underlying fund.
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows:
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life
Aggressive International Capital IDS Life Special IDS Life
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
Management fees
Other expenses
Total
</TABLE>
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INVESCO VIF
Industrial
Income
Management fees
Other expenses
Total
Example:* You would pay the following expenses on a $1,000
investment, assuming 5% annual return and surrender, no surrender
or selection of an annuity payout plan at the end of each time
period:
<TABLE>
<CAPTION>
IDS Life IDS Life IDS Life IDS Life
Aggressive International Capital IDS Life Special IDS Life
Growth Equity Resource Managed Income Moneyshare
<S> <C> <C> <C> <C> <C> <C>
1 year $ 20.15 $ 23.94 $ 20.15 $ 20.15 $ 20.15 $ 18.92
3 years 62.28 73.72 62.28 62.28 62.28 58.55
5 years 106.95 126.12 106.95 106.95 106.95 100.67
10 years 230.85 269.56 230.85 230.85 230.85 217.99
</TABLE>
INVESCO VIF
Industrial
Income
1 year $ 22.41
3 years 69.09
5 years 118.39
10 years 254.04
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $30 annual contract administrative charge is
approximated as a .286% charge based on our estimated average
contract size. American Centurion Life has entered into certain
arrangements under which it is compensated for the administrative
services it provides to the funds.
Financial statements
To be filed by amendment.
Performance information
Performance information for the variable subaccounts may appear
from time to time in advertisements or sales literature. In all
cases, such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
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PAGE 12
Simple yield - IDS Life Moneyshare Subaccount: Income over a given
seven-day period (not counting any change in the capital value of
the investment) is annualized (multiplied by 52) by assuming that
the same income is received for 52 weeks. This annual income is
then stated as an annual percentage return on the investment.
Compound yield - IDS Life Moneyshare Subaccount: Calculated like
simple yield, except that, when annualized, the income is assumed
to be reinvested. Compounding of reinvested returns increases the
yield as compared to a simple yield.
Yield - IDS Life Special Income Subaccount: Net investment income
(income less expenses) per accumulation unit during a given 30-day
period is divided by the value of the unit on the last day of the
period. The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and ten years (or up to the life of the
subaccount if it is less than ten years old). This figure reflects
deduction of all applicable charges, including the contract
administrative charge, and mortality and expense risk fee.
Aggregate total return: Represents the cumulative change in value
of an investment for a given period (reflecting change in a
subaccount's accumulation unit value). The calculation assumes
reinvestment of investment earnings and reflects deduction of all
applicable charges, including the contract administrative charge
and mortality and expense risk fee. Aggregate total return may be
shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the subaccount invests and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the annuity,
which has the effect of decreasing advertised performance,
subaccount performance should not be compared to that of mutual
funds that sell their shares directly to the public. (See the SAI
for a further description of methods used to determine yield and
total return for the subaccounts.)
If you would like additional information about actual performance,
contact American Centurion Life.
The variable account
Purchase payments can be allocated to any or all of the subaccounts
of the variable account that invest in shares of the following
funds:
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PAGE 13
Subaccount
IDS Life Aggressive Growth Fund DAG
IDS Life International Equity Fund DIE
IDS Life Capital Resource Fund DCR
IDS Life Managed Fund DMG
IDS Life Special Income Fund DSI
IDS Life Moneyshare Fund DMS
INVESCO VIF - Industrial Income Portfolio DII
Each variable subaccount meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each subaccount are credited or charged to that account
alone. No subaccount will be charged with liabilities of any other
variable account or of our general business. The obligations
arising under the contracts are general obligations of American
Centurion Life.
The variable account was established under New York law and is
registered as a unit investment trust under the Investment Company
Act of 1940 (the 1940 Act). This registration does not involve any
supervision of our management or investment practices and policies
by the SEC.
The funds
IDS Life Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small- and medium-size companies.
IDS Life International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock.
IDS Life Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks listed on national securities exchanges and other securities
convertible into common stock, diversified over many different
companies in a variety of industries.
IDS Life Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks listed on national securities exchanges,
securities convertible into common stock, warrants, fixed income
securities (primarily high-quality corporate bonds) and money
market instruments.
IDS Life Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
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PAGE 14
IDS Life Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
INVESCO VIF - Industrial Income Portfolio
Objective: to seek the best possible current income while following
sound investment practices with capital growth potential as a
secondary consideration. Invests in securities providing a
relatively high yield and stable return and which, over a period of
years, also may provide capital appreciation.
All funds are available to serve as the underlying investment for
variable annuities, and some funds are available to serve as the
underlying investment for variable annuities and variable life
insurance contracts. It is conceivable that in the future it may
be disadvantageous for variable annuity separate accounts and
variable life insurance separate accounts to invest in the
available funds simultaneously. Although American Centurion Life
and the funds do not currently foresee any such disadvantages
either to variable annuity contract owners or to variable life
insurance policy owners, the boards of directors or trustees of the
appropriate funds will monitor events in order to identify any
material conflicts between such contract owners and policy owners
and to determine what action, if any, should be taken in response
to a conflict. If a board were to conclude that separate funds
should be established for variable life insurance and variable
annuity separate accounts, the variable annuity contract holders
would not bear any expenses associated with establishing separate
funds.
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under Section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable subaccounts may be
offered and how many exchanges among variable subaccounts may be
allowed before the owner is considered to have investment control,
and thus is currently taxed on income earned within variable
subaccount assets. We do not know at this time what the additional
guidance will be or when action will be taken. We reserve the
right to modify the contract, as necessary, to ensure that the
owner will not be subject to current taxation as the owner of the
variable subaccount assets.
We intend to comply with all federal tax laws to ensure that the
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
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PAGE 15
IDS Life, IDS Tower 10, Minneapolis, MN 55440, is the investment
manager for each of the IDS Life Funds. INVESCO Funds Group, Inc.,
Post Office Box 173706, Denver, CO 80217-3706, is the investment
advisor for the INVESCO VIF - Industrial Income Portfolio. The
investment managers for the funds cannot guarantee that the funds
will meet their investment objectives. Please read the
prospectuses for the funds for complete information on investment
risks, deductions, expenses and other facts you should know before
investing. They are available by contacting American Centurion
Life at the address or telephone number on the front of this
publication.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of American Centurion
Life, the company's main portfolio of investments. Interest is
credited daily and compounded annually. We guarantee a minimum
interest rate of 3%. We may declare the interest rates above the
guaranteed rate from time to time.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying your annuity
Our representative can help you prepare and submit your
application. Alternatively, you may ask us for the forms and
prepare them yourself. As the owner, you have all rights and may
receive all benefits under the contract. Annuities cannot be owned
in joint tenancy.
When you apply, you can select:
o the account(s) in which you want to invest;
o how you want to make purchase payments;
o the date you want to start receiving annuity payouts (the
annuity start date); and
o a beneficiary.
If your application is complete, we will process it and apply your
purchase payment to your account(s) within two days after we
receive it. If your application is accepted, we will send you a
contract. If we cannot accept your application within five days,
we will decline it and return your payment. We will credit
additional purchase payments you make to an existing contract to
your account(s) at the next close of business.<PAGE>
PAGE 16
Setting the annuity start date
Annuity payouts will be scheduled to begin on the annuity start
date. This date can be aligned with your actual retirement from a
job, or it can be a different future date, depending on your needs
and goals and on certain restrictions. You can also change the
date, provided you send us written instructions at least 30 days
before annuity payouts begin.
For nonqualified annuities, the annuity start date must be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 85th birthday.
For qualified annuities, to avoid IRS penalty taxes, the annuity
start date generally must be:
o on or after the annuitant reaches age 59 1/2; and
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
If you are taking the minimum IRA distributions as required by the
Code from another tax-qualified investment, or in the form of
partial surrenders from this annuity, annuity payouts can start as
late as, but not later than, the annuitant's 85th birthday.
Beneficiary
If death benefits become payable before the annuity start date,
your named beneficiary will receive all or part of the contract
value. If there is no named beneficiary, then you or your estate
will be the beneficiary. (See "Payment in case of death" for more
about beneficiaries.)
Minimum purchase payments
If single payment:
Nonqualified: $2,000
Qualified: $1,000
If installment payments:
$100 monthly; $50.00 biweekly
Installments must total at least $1,000 in the first year.*
*If you make no purchase payments for the most recent 36 months,
and your previous payments total $1,000 or less, we have the right
to give you 30 days' written notice and pay you the total value of
your contract in a lump sum.
Minimum additional purchase payment(s): $100
Maximum first-year payment(s):
<PAGE>
PAGE 17
This maximum is based on your age or age of the annuitant (whomever
is older) on the effective date of the contract.
Up to age 75 $1 million
76 to 85 $500,000
Maximum payment for each subsequent year: $50,000**
**These limits apply in total to all American Centurion Life
annuities you own. We reserve the right to increase maximum limits
or reduce age limits. For qualified annuities the qualified plan's
limits on annual contributions also apply.
Three ways to make purchase payments
1 By letter
Send your check along with your name and account number to:
Regular mail:
American Centurion Life Assurance Company
Box 1544
Albany, NY 12205
Express mail:
American Centurion Life Assurance Company
20 Madison Avenue Ext.
Albany, NY 12203
2 By scheduled payment plan
Through:
o a bank authorization.
3 Other
o wire transfer; or
o other method acceptable to us.
Charges
Contract administrative charge
This charge is for establishing and maintaining your records. On
each contract anniversary we will deduct $30 from the contract
value. The deduction will be allocated among the subaccounts on a
pro-rata basis.
This charge will be waived for any contract year where the total
purchase payments (less partial surrenders) on the current contract
anniversary is $10,000 or more, or if, during the contract year, a
death benefit is payable or the contract is surrendered in full.
This charge does not apply after annuity payouts begin.
<PAGE>
PAGE 18
We do not expect to profit from the contract administrative charge.
While we do not currently plan to increase the charge, we reserve
the right to increase the charge in the future. In no event will
the charge exceed $50 per year. Also, we reserve the right to
impose the charge on all contracts, including those with purchase
payments equal to or greater than $10,000.
Mortality and expense risk fee
This fee is to cover the mortality risk and expense risk and is
applied daily to the variable subaccounts and reflected in the unit
values of the accounts. Annually it totals 1% of their average
daily net assets. Approximately two-thirds of this amount is for
our assumption of mortality risk, and one-third is for our
assumption of expense risk. This fee does not apply to the fixed
account.
Mortality risk arises because of our guarantee to pay a death
benefit and our guarantee to make annuity payouts according to the
terms of the contract, no matter how long a specific annuitant
lives and no matter how long the entire group of American Centurion
Life annuitants live. If, as a group, American Centurion Life
annuitants outlive the life expectancy we have assumed in our
actuarial tables, then we must take money from our general assets
to meet our obligations. If, as a group, American Centurion Life
annuitants do not live as long as expected, we could profit from
the mortality risk fee.
Expense risk arises because the contract administrative charge may
not cover our expenses. Any deficit would have to be made up from
our general assets. We could profit from the expense risk fee if
the annual contract administrative charge is more than sufficient
to meet expenses.
We do hope to profit from the mortality and expense risk fee. We
may use any profits realized from this fee for any proper corporate
purpose, including, among others, payment of distribution (selling)
expenses.
Other information on charges
There is no surrender charge if you take a total or a partial
surrender from your contract.
In some cases lower sales and administrative expenses may be
incurred. In such cases, we may be able to reduce or eliminate the
contract administrative charge. However, we expect this to occur
infrequently.
Valuing your investment
Here is how your accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments plus interest earned, less any amounts surrendered or
transferred.
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PAGE 19
Variable subaccounts: Amounts allocated to the variable
subaccounts are converted into accumulation units. Each time you
make a purchase payment or transfer amounts into one of the
variable subaccounts, a certain number of accumulation units are
credited to your contract for that account. Conversely, each time
you take a partial surrender, transfer amounts out of a variable
subaccount or are assessed a contract administrative charge, a
certain number of accumulation units are subtracted from your
contract.
The accumulation units are the true measure of investment value in
each subaccount during the accumulation period. They are related
to, but not the same as, the net asset value of the underlying
fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying mutual fund and on
certain fund expenses. Here is how unit values are calculated:
Number of units
To calculate the number of accumulation units for a particular
subaccount, we divide your investment by the current accumulation
unit value.
Accumulation unit value
The current accumulation unit value for each variable subaccount
equals the last value times the subaccount's current net investment
factor.
Net investment factor
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per-share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the accumulation unit value may increase or decrease.
You bear this investment risk in a variable subaccount.
Factors that affect variable subaccount accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable
subaccounts;
o transfers into or out of the variable subaccount(s);
o partial surrenders; and/or
o contract administrative charges.
<PAGE>
PAGE 20
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable subaccount(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; and/or
o mortality and expense risk fees.
Making the most of your annuity
Automated dollar-cost averaging
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable subaccount to a more aggressive
one, or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower your average cost per unit. Contact our service
office for more information.
<TABLE>
<CAPTION>
How dollar-cost averaging works
Month Amount Accumulation Number of units
invested unit value purchased
<S> <C> <C> <C> <C>
By investing an Jan $100 $20 5.00
equal number of
dollars each month.... Feb 100 16 6.25
Mar 100 9 11.11
you automatically Apr 100 5 20.00
buy more units
when the per unit May 100 7 14.29
market price is low....
June 100 10 10.00
July 100 15 6.67
and fewer units Aug 100 20 5.00
when the per unit
market price is Sept 100 17 5.88
high.
Oct 100 12 8.33
</TABLE>
You have paid an average price of only $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any subaccount will
gain in value, nor will it protect against a decline in value if
market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long term goals.
Transferring money between accounts
You may transfer money from any one subaccount or the fixed account
to another at any time before annuity payouts begin. If we receive
your request before the close of business, we will process it that <PAGE>
PAGE 21
day. Requests received after the close of business will be
processed the next business day. Before making a transfer, you
should consider the risks involved in switching investments. We
may suspend or modify transfer privileges at any time.
Transfer policies
o You may transfer contract values at any time between the
variable subaccounts, from the variable subaccount(s) to the
fixed account or from the fixed account to the variable
subaccount(s).
o The amount being transferred to any one account must be at least
$100.
o If you make more than 12 transfers in a contract year, we will
charge $25 for each transfer in excess of 12.
o Excessive trading activity can disrupt mutual fund management
strategy and increase expenses, which are borne by all contract
owners participating in the mutual fund regardless of their
transfer activity. Therefore, we reserve the right to limit the
number of transfers permitted, but not to fewer than twelve per
contract year.
Two ways to request a transfer or a surrender
1 By letter
Send your name, contract number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or
surrender to:
Regular mail:
American Centurion Life Assurance Company
Box 1544
Albany, NY 12205
Express mail:
American Centurion Life Assurance Company
20 Madison Avenue Ext.
Albany, NY 12203
Minimum amount
Mail transfers: $100 or entire account balance
Mail surrenders: $100 or entire account balance
Maximum amount
Mail transfers: None (up to contract value)
Mail surrenders: None (up to contract value)
2 By automated transfers and automated partial surrenders
o You can set up automated transfers among your accounts or
partial surrenders from the accounts.
<PAGE>
PAGE 22
You can start or stop this service by written request or other
method acceptable to American Centurion Life. You must allow 30
days for American Centurion Life to change any instructions that
are currently in place.
o Automated transfers and automated partial surrenders are subject
to all of the contract provisions and terms, including transfer
of contract values between accounts. Automated surrenders may
be restricted by applicable law under some contracts.
o Automated partial surrenders may result in IRS taxes and
penalties on all or part of the amount surrendered.
Minimum amount
Automated transfers or surrenders: $100
Maximum amount
Automated transfers or surrenders: None
Surrendering your contract
As owner, you may surrender all or part of your contract at any
time before annuity payouts begin by sending a written request to
American Centurion Life. For total surrenders we will compute the
value of your contract at the close of business after we receive
your request. We may ask you to return the contract. You may have
to pay IRS taxes and penalties. (See "Taxes.") No surrenders may
be made after annuity payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will surrender money from all your accounts
in the same proportion as your value in each account correlates to
your total contract value, unless you request otherwise.
Receiving payment when you request a surrender
By regular or express mail:
o Payable to owner.
o Normally mailed to address of record within seven days after
receiving your request. However, we may postpone the payment
if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts;
or
-the SEC permits us to delay payment for the protection of
security holders.
<PAGE>
PAGE 23
Changing ownership
You may change ownership of your non-qualified annuity at any time
by filing a change of ownership with us at our service office. The
change will become binding upon us when we receive and record it.
We will honor any change of ownership request believed to be
authentic and will use reasonable procedures to confirm that it is.
If these procedures are followed, we take no responsibility for the
validity of the change.
If you have a nonqualified annuity, you may lose your tax
advantages by transferring, assigning or pledging any part of it.
(See "Taxes.")
If you have a qualified annuity, you may not sell, assign,
transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for
any other purpose to any person except American Centurion Life.
However, if the owner is a trust or custodian, or an employer
acting in a similar capacity, ownership of a contract may be
transferred to the annuitant.
Benefits in case of death
If you or the annuitant dies (or, for qualified annuities, if the
annuitant dies) before annuity payouts begin, we will pay the
beneficiary the greater of:
o the contract value; or
o purchase payments, minus any partial surrenders.
If your spouse is sole beneficiary under a non-qualified annuity
and you die before the annuity start date, your spouse may keep the
annuity as owner. To do this your spouse must, within 60 days
after we receive proof of death, give us written instructions to
keep the contract in force.
Under a qualified annuity, if the annuitant dies before reaching
age 70 1/2 and before the annuity start date, and the spouse is the
only beneficiary, the spouse may keep the annuity in force as owner
or until the date on which the annuitant would have reached age 70
1/2. To do this, the spouse must give us written instructions
within 60 days after we receive proof of death.
Payouts: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
<PAGE>
PAGE 24
When paying the beneficiary, we will determine the contract's value
at the next close of business after our death claim requirements
are fulfilled. Interest, if any, will be paid from the date of
death at a rate no less than required by law. We will mail payment
to the beneficiary within seven days after our death claim
requirements are fulfilled. (See "Taxes.")
The annuity payout period
As owner of the contract, you have the right to decide how and to
whom annuity payouts will be made starting at the annuity start
date. You may select one of the annuity payout plans outlined
below, or we will mutually agree on other payout arrangements. The
amount available for payouts under the plan you select is the
contract value on your annuity start date. Annuity payouts will be
made on a fixed basis.
Amounts of payouts depend on:
o the annuity payout plan you select;
o the annuitant's age and, in most cases, sex;
o the annuity table in the contract.
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before contract values are to
be used to purchase the payout plan:
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that the annuitant elects. This election will determine the
length of the payout period to the beneficiary if the annuitant
should die before the elected period has expired. The guaranteed
payout period is calculated from the annuity start date. If the
annuitant outlives the elected guaranteed payout period, payouts
will continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
<PAGE>
PAGE 25
o Plan E - Payouts for a specified period: Monthly payouts are
made for a specific payout period of 10 to 30 years chosen by the
annuitant. Payouts will be made only for the number of years
specified whether the annuitant is living or not. Depending on the
time period selected, it is foreseeable that an annuitant can
outlive the payout period selected. In addition, a 10% IRS penalty
tax could apply under this payout plan. (See "Taxes".)
Restrictions for some qualified plans: If you purchased a
qualified annuity, you must select a payout plan that provides for
payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before the
annuitant's annuity start date. If you do not, we will make
payouts under Plan B, with 120 monthly payouts guaranteed.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the contract value is used to
purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
contract value to the owner in a lump sum.
Death after annuity payouts begin
If you or the annuitant dies after annuity payouts begin, any
amount payable to the beneficiary will be provided in the annuity
payout plan in effect.
Taxes
Generally, under current law, any increase in your contract value
is taxable to you only when you receive a payout or surrender.
(However, see detailed discussion below.) Any portion of the
annuity payouts and any surrenders you request that represent
ordinary income are normally taxable. You will receive a 1099 tax
information form for any year in which a taxable distribution was
made.
Annuity payouts under nonqualified annuities: A portion of each
payout will be ordinary income and subject to tax, and a portion of
each payout will be considered a return of part of your investment
and will not be taxed. All amounts received after your investment
in the annuity is fully recovered will be subject to tax.
Tax law requires that all nonqualified deferred annuity contracts
issued by the same company to the same owner during a calendar year
are to be taxed as a single, unified contract when distributions
are taken from any one of such contracts.
<PAGE>
PAGE 26
Annuity payouts under qualified annuities: Under a qualified
annuity, the entire payout generally will be includable as ordinary
income and subject to tax except to the extent that contributions
were made with after-tax dollars. If you invested in your contract
with pre-tax dollars as part of a qualified retirement plan, such
amounts are not considered to be part of your investment in the
contract and will be taxed when paid to you.
Surrenders: If you surrender part or all of your contract before
your annuity payouts begin, your surrender payment will be taxed to
the extent that the value of your contract immediately before the
surrender exceeds your investment. You also may have to pay a 10%
IRS penalty for surrenders before reaching age 59 1/2. For
qualified annuities, other penalties may apply if you surrender
your annuity before your plan specifies that you can receive
payouts.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax-exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the contract is
taxable as ordinary income to the beneficiary in the year(s) he or
she receives the payments.
Annuities owned by corporations, partnerships or trusts: Any
annual increase in the value of annuities held by such entities
generally will be treated as ordinary income received during that
year. This provision is effective for purchase payments made after
Feb. 28, 1986. However, if the trust was set up for the benefit of
a natural person only, the increase in value will be tax-deferred.
Penalties: If you receive amounts from your contract before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if
you surrender your annuity before your plan specifies that payouts
can be made.
Withholding, generally: If you receive all or part of the contract
value from an annuity, withholding may be imposed against the
taxable income portion of the payment. Any withholding that is
done represents a prepayment of your tax due for the year. You
take credit for such amounts on the annual tax return that you
file.
If the payment is part of an annuity payout plan, the amount of
withholding generally is computed using payroll tables. You can
provide us with a statement of how many exemptions to use in
<PAGE>
PAGE 27
calculating the withholding. As long as you've provided us with a
valid Social Security Number or Taxpayer Identification Number, you
can elect not to have any withholding occur.
If the distribution is any other type of payment (such as a partial
or total surrender) withholding is computed using 10% of the
taxable portion. Similar to above, as long as you've provided us
with a valid Social Security Number or Taxpayer Identification
Number, you can elect not to have this withholding occur.
Some states also impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payment from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
Transfer of ownership of a nonqualified annuity: If you make such
a transfer without receiving adequate consideration, the transfer
is considered a gift, and also may be considered a surrender for
federal income tax purposes. If the gift is a currently taxable
event, the amount of deferred earnings at the time of the transfer
will be taxed to the original owner, who also may be subject to a
10% IRS penalty as discussed earlier. In this case, the new
owner's investment in the annuity will be the value of the annuity
at the time of the transfer.
Collateral assignment of a nonqualified annuity: If you
collaterally assign or pledge your contract, earnings on purchase
payments you made after Aug. 13, 1982 will be taxed to you like a
surrender.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax adviser if you have any questions about taxation of your
contract.
Tax Qualifications
The contract is intended to qualify as an annuity for federal
income tax purposes. To that end, the provisions of the contract
are to be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions of the contract. We reserve
the right to amend the contract to reflect any clarifications that
may be needed or are appropriate to maintain such qualification or
to conform the contract to any applicable changes in the tax
qualification requirements. We will send you a copy of any such
amendments.
Voting rights
As a contract owner with investments in the variable account(s),
you may vote on important mutual fund policies. We will vote fund
shares according to your instructions.
<PAGE>
PAGE 28
The number of votes you have is determined by applying your
percentage interest in each variable subaccount to the total number
of votes allowed to the subaccount.
We calculate votes separately for each subaccount not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
Substitution of Investments
If shares of any fund should not be available for purchase by the
appropriate variable subaccount or if, in the judgment of American
Centurion Life's Management, further investment in such shares is
no longer appropriate in view of the purposes of the subaccount,
investment in the subaccount may be discontinued or another
registered open-end management investment company may be
substituted for fund shares held in the subaccounts if American
Centurion Life believes it would be in the best interest of persons
having voting rights under the contract. The variable account may
be operated as a management company under the 1940 Act or it may be
deregistered under this Act if the registration is no longer
required. In the event of any such substitution or change,
American Centurion Life, without the consent or approval of the
owners, may amend the contract and take whatever action is
necessary and appropriate. However, no such substitution or change
will be made without the necessary approval of the SEC and state
insurance departments. American Centurion Life will notify owners
of any substitution or change.
Distribution of the Contracts
The contracts will be distributed by American Express Financial
Advisors Inc., the principal underwriter for the variable account.
About American Centurion Life
The Privileged Assets Select Annuity is issued by American
Centurion Life. American Centurion Life is a wholly owned
subsidiary of IDS Life Insurance Company, which is a wholly owned
subsidiary of American Express Financial Corporation. American
Express Financial Corporation is a wholly owned subsidiary of the
American Express Company. American Express Company is a financial
services company principally engaged through subsidiaries (in
addition to American Express Financial Corporation) in travel
related services, investment services and international banking
services.
<PAGE>
PAGE 29
American Centurion Life is a stock life insurance company organized
in 1969 under the laws of the State of New York. Its service
office is located at 20 Madison Avenue Ext. Albany, NY 12203.
American Centurion Life is licensed in the state of New York and it
conducts a conventional life insurance business.
American Express Financial Advisors Inc. is the principal
underwriter for the variable account. Its corporate office is IDS
Tower 10, Minneapolis, MN 55440-0010. American Express Financial
Advisors Inc. is registered with the SEC under the Securities
Exchange Act of 1934 as a broker-dealer and is a member of the
National Association of Securities Dealers, Inc. American Express
Financial Advisors Inc. is a wholly owned subsidiary of American
Express Financial Corporation.
The American Express Financial Corporation family of companies also
offers mutual funds, investment certificates and a broad range of
financial management services.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity,
American Centurion Life provides:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
<PAGE>
PAGE 30
Table of contents of the Statement of Additional Information
Performance information............................
Calculating annuity payouts........................
Rating Agencies....................................
Principal underwriter..............................
Independent auditors...............................
Mortality and expense risk fee.....................
Retirement planning................................
Prospectus.........................................
Financial statements -
American Centurion Life Assurance Company....
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ Privileged Assets Select Annuity
_____ IDS Life Retirement Annuity Mutual Funds
_____ INVESCO Variable Investment Funds, Inc.
Please return this request to:
American Centurion Life Assurance Company
20 Madison Avenue Ext.
Albany, NY 12203
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 31
STATEMENT OF ADDITIONAL INFORMATION
for
PRIVILEGED ASSETS (registered trademark symbol) SELECT ANNUITY
ACL VARIABLE ANNUITY ACCOUNT 1
DATE
ACL Variable Annuity Account 1 is a separate account established
and maintained by American Centurion Life Assurance Company
(American Centurion Life).
This Statement of Additional Information, dated _______________, is
not a prospectus. It should be read together with the Account's
prospectus, dated _______________, which may be obtained by writing
or calling American Centurion Life at the address or telephone
number below.
American Centurion Life Assurance Company
20 Madison Avenue Ext.
Albany, NY 12203
Phone (518) 452-4150
<PAGE>
PAGE 32
TABLE OF CONTENTS
Performance Information.......................................p.
Calculating Annuity Payouts...................................p.
Rating Agencies...............................................p.
Principal Underwriter.........................................p.
Independent Auditors..........................................p.
Mortality and Expense Risk Fee................................p.
Retirement Planning...........................................p.
Prospectus....................................................p.
Financial Statements
- American Centurion Life Assurance Company.........p.
<PAGE>
PAGE 33
PERFORMANCE INFORMATION
The following performance figures are calculated on the basis of
historical performance of the funds. The performance figures
relating to these funds assume that the contract was in existence
prior to _________________, 1996, which it was not. Beginning
_______________, 1996, when these funds became available as
investment options under the contract, actual values are used for
the calculations.
Calculation of yield for IDS Life Moneyshare Subaccount
Simple yield for the IDS Life Moneyshare subaccount (DMS) will be
based on the: (a) change in the value of a hypothetical investment
(exclusive of capital changes) at the beginning of a seven-day
period for which yield is to be quoted; (b) subtracting a pro rata
share of subaccount expenses accrued over the seven-day period; (c)
dividing the difference by the value of the subaccount at the
beginning of the period to obtain the base period return; and (d)
annualizing the results (i.e., multiplying the base period return
by 365/7). Calculation of compound yield begins with the same base
period return used in the calculation of yield, which is then
annualized to reflect compounding according to the following
formula:
Compound Yield = [(return for seven-day period + 1) 365/7 ]-1
On _______________, the account's annualized yield was _____% and
its compound yield was _____%.
The rate of return, or yield, on the subaccount's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in subaccount DMS with fixed annuities, that fixed
annuities often provide an agreed-to or guaranteed fixed yield for
a stated period of time, whereas the variable subaccount's yield
fluctuates. In comparing the yield of subaccount DMS to a money
market fund, you should consider the different services that the
annuity provides.
Calculation of yield for IDS Life Special Income Subaccount
For the IDS Life Special Income Subaccount (DSI), quotations of
yield will be based on all investment income earned during a
particular 30-day period, less expenses accrued during the period
(net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
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PAGE 34
where: a = dividends and investment income earned during the
period.
b = expenses accrued for the period (net of
reimbursements).
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends.
d = the maximum offering price per accumulation unit on
the last day of the period.
Yield on the subaccount is earned from the increase in the net
asset value of shares of the fund in which the subaccount invests
and from dividends declared and paid by the fund, which are
automatically invested in shares of the fund.
Calculation of average annual total return
Quotations of average annual total return for a subaccount will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
subaccount), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
The Securities and Exchange Commission requires that an assumption
be made that the contract owner surrenders the entire contract at
the end of the one, five and ten year periods (or, if less, up to
the life of the subaccount) for which performance is required to be
calculated.
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PAGE 35
Average Annual Total Return Period Ended: Dec. ____________
<TABLE>
<CAPTION>
Average Annual Total Return with or without Surrender
Since
Subaccount investing in: 1 Year 5 Years 10 Years Inception
<S> <C> <C> <C> <C>
IDS LIFE
Aggressive Growth Fund (1/92)*
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
INVESCO VIF
Industrial Income Portfolio (8/94)
*inception dates of the funds are shown in parentheses.
</TABLE>
Aggregate Total Return
Aggregate total return represents the cumulative change in value of
an investment for a given period (reflecting change in a
subaccount's accumulation unit value) and is computed by the
following formula:
ERV-P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
Subaccount total return figures reflect the deduction of the
contract administrative charge and mortality and expense risk fee.
Performance of the subaccounts may be quoted or compared to
rankings, yields, or returns as published or prepared by
independent rating or statistical services or publishers or
publications such as The Bank Rate Monitor National Index,
Barron's, Business Week, Donoghue's Money Market Fund Report,
Financial Services Week, Financial Times, Financial World, Forbes,
Fortune, Global Investor, Institutional Investor, Investor's Daily,
Kiplinger's Personal Finance, Lipper Analytical Services, Money,
Mutual Fund Forecaster, Newsweek, The New York Times, Personal
Investor, Stanger Report, Sylvia Porter's Personal Finance, USA
Today, U.S. News and World Report, The Wall Street Journal and
Wiesenberger Investment Companies Service.
CALCULATING ANNUITY PAYOUTS
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
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PAGE 36
o take the total value of your fixed account and the subaccounts
at the annuity start date or the date you have selected to begin
receiving your annuity payouts; then
o using an annuity table we apply the value according to the
annuity payout plan you select.
o The annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
RATING AGENCIES
The following chart reflects the ratings given to American
Centurion Life by independent rating agencies. These agencies
evaluate the financial soundness and claims-paying ability of
insurance companies based on a number of different factors. This
information does not relate to the management or performance of the
variable subaccounts of the Privileged Assets Select Annuity. This
information relates only to the fixed account and reflects American
Centurion Life's ability to make annuity payouts and to pay death
benefits and other distributions from the annuity.
Rating agency Rating
A.M. Best A+
(Superior)
Duff & Phelps AAA
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is American Express
Financial Advisors Inc. which offers the variable contracts on a
continuous basis.
INDEPENDENT AUDITORS
[To be filed by amendment]
MORTALITY AND EXPENSE RISK FEE
American Centurion Life has represented to the SEC that:
American Centurion Life has reviewed publicly available information
regarding products of other companies. Based upon this review,
American Centurion Life has concluded that the mortality and
expense risk fee is within the range of charges determined by
industry practice. American Centurion Life will maintain at its
administrative office, and make available on request of the SEC or
its staff, a memorandum setting forth in detail the variable
products analyzed and the methodology, and results of, its
comparative review.
American Centurion Life has concluded that there is a reasonable
likelihood that the proposed distribution financing arrangements
made with respect to the contracts will benefit the variable
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PAGE 37
account and investors in the contracts. The basis for such
conclusion is set forth in a memorandum which will be made
available to the SEC or its staff on request.
RETIREMENT PLANNING
You may have to save more for retirement because social security
and employee savings plans are estimated to cover only 40% of your
retirement savings. The remaining 60% must come from personal
investments, savings and other income.* One way to help save for
retirement is by purchasing a variable annuity. Variable annuity
sales have almost tripled in the last 4 years to over $52 billion
dollars.**
Sources:
* Social Security Administration
**LIMRA 1994 Individual Annuity Market Report
PROSPECTUS
The prospectus dated ___________________, is hereby incorporated in
this Statement of Additional Information by reference.
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PAGE 38
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by amendment.
(b) Exhibits:
1. Certificate, establishing the ACL Variable Annuity Account 1
dated December 1, 1995, filed electronically herewith.
2. Not applicable.
3. Form of Variable Annuity Distribution Agreement, to be filed
by amendment.
4.1 Form of Group Deferred Annuity Certificate for nonqualified
contract (form 38502-NY 10/95), filed electronically
herewith.
4.2 Form of Group Deferred Annuity Certificate for qualified
contract (form 38503-IRA-NY 10/95), filed electronically
herewith.
4.3 Form of Group Deferred Annuity Contract (form 38501 10/95),
filed electronically herewith.
5.1 Form of Group Deferred Variable Annuity Application (form
32041 10/95), filed electronically herewith.
5.2 Form of Variable Annuity Participant Enrollment Form (form
32027C 10/95), filed electronically herewith.
6.1 Amended and Restated Articles of Incorporation of American
Centurion Life, filed electronically herewith.
6.2 Amended By-Laws of American Centurion Life, filed
electronically herewith.
6.3 Emergency By-Laws of American Centurion Life, filed
electronically herewith.
7. Not applicable.
8. Form of Participation Agreement, to be filed by amendment.
9. Opinion of counsel, to be filed by amendment.
10. Consent of Independent Auditors, to be filed by amendment.
11. Not applicable.
12. Not applicable.
13. Copy of schedule for computation of each performance
quotation provided in the Registration Statement in response
to Item 21, filed electronically herewith.
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PAGE 39
14.1 Not applicable.
14.2 Power of Attorney to sign this Registration Statement dated
Dec. 22, 1995, filed electronically herewith.
Item 25. Directors and Officers of the Depositor (American
Centurion Life Assurance Company)
<TABLE><CAPTION>
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
Doris A. Anfinson IDS Tower 10 Vice President
Minneapolis, MN 55440
Robert C. Auriema IDS Tower 10 Director
Minneapolis, MN 55440
Alan R. Dakay IDS Tower 10 Director, Vice Chairman and
Minneapolis, MN 55440 President, Financial Institutions
Division
Clarence E. Galston IDS Tower 10 Director
Minneapolis, MN 55440
Morris Goodwin, Jr. IDS Tower 10 Vice President and
Minneapolis, MN 55440 Treasurer
Jay C. Hatlestad IDS Tower 10 Vice President and
Minneapolis, MN 55440 Controller
Robert A. Hatton IDS Tower 10 Director
Minneapolis, MN 55440
William J. Heron, Jr. IDS Tower 10 Director
Minneapolis, MN 55440
Michael J. Hogan IDS Tower 10 Vice President - Variable
Minneapolis, MN 55440 Product Development
Richard W. Kling IDS Tower 10 Director
Minneapolis, MN 55440
David M. Kuplic IDS Tower 10 Vice President -
Minneapolis, MN 55440 Investments
Ryan R. Larson IDS Tower 10 Director and Vice
Minneapolis, MN 55440 President - Product Development
Herbert W. Marache Jr. IDS Tower 10 Director
Minneapolis, MN 55440
Kenneth W. Nelson IDS Tower 10 Director
Minneapolis, MN 55440
Doretta Rinaldi IDS Tower 10 Director and Vice
Minneapolis, MN 55440 President - Marketing
Stuart A. Sedlacek IDS Tower 10 Chairman and President
Minneapolis, MN 55440<PAGE>
PAGE 40
Item 25. Directors and Officers of the Depositor (continued)
Positions and
Name Principal Business Address Offices with Depositor
Anne L. Segal IDS Tower 10 Director
Minneapolis, MN 55440
Daniel J. Segner IDS Tower 10 Vice President - Investments
Minneapolis, MN 55440
Guerdon D. Smith IDS Tower 10 Director
Minneapolis, MN 55440
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
American Centurion Life Assurance Company is a wholly
owned subsidiary of IDS Life Insurance Company which is a
wholly owned subsidiary of American Express Financial
Corporation. American Express Financial Corporation is a
wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Companies engaged in Investors
Diversified Financial Services
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Insurance Agency of
Nevada Inc. Nevada
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Tax and Business Services Minnesota
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota<PAGE>
PAGE 41
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Inc. Mississippi
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
Not applicable.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify a director, officer, agent or employee of the
depositor pursuant to the provisions of applicable
statutes or pursuant to contract.
Insofar as indemnification for liability arising under
the Securities Act of 1933 may be permitted to director,
officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by
a director, officer or controlling person of the
registrant in the successful defense of any action, suit
or proceeding) is asserted by such director, officer or
controlling person in connection with the securities
being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by
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PAGE 42
controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
Item 29. Principal Underwriters.
(a) American Express Financial Advisors acts as principal
underwriter for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investment
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Total None
IDS Tower 10 Compensation
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Investments
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 American Express
Institutional Services
Alvan D. Arthur Group Vice President- None
Suite 105 Central California/
2710 S. Gateway Oaks Dr. Western Nevada
Sacramento, CA 95833
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
<PAGE>
PAGE 43
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Robert C. Basten Vice President-Tax None
IDS Tower 10 and Business Services
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Risk None
IDS Tower 10 Management Products
Minneapolis, MN 55440
John D. Begley Group Vice President- None
Suite 100 Ohio/Indiana
7760 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Jack A. Benjamin Group Vice President- None
Suite 200 Greater Pennsylvania
3500 Market Street
Camp Hill, PA 17011
Alan F. Bignall Vice President- None
IDS Tower 10 Financial Planning
Minneapolis, MN 55440 Systems
Brent L. Bisson Group Vice President- None
Ste 900 E. Westside Twr Los Angeles Metro
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President- None
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President- None
Suite 200 New Jersey
3500 Market Street
Camp Hill, NJ 17011
Bruce J. Bordelon Group Vice President- None
Galleria One Suite 1900 Gulf States
Galleria Blvd.
Metairie, LA 70001
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PAGE 44
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Charles R. Branch Group Vice President- None
Suite 200 Northwest
West 111 North River Dr
Spokane, WA 99201
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special Counsel
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
Cynthia M. Carlson Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Securities Services
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Group Vice President- None
290 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Commerce Center One Connecticut
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President- None
Suite 200 Arkansas/Springfield/
10800 Financial Ctr Pkwy Memphis
Little Rock, AR 72211
<PAGE>
PAGE 45
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kevin F. Crowe Group Vice President- None
Suite 312 Carolinas/Eastern Georgia
7300 Carmel Executive Pk
Charlotte, NC 28226
Colleen Curran Vice President and None
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Alan R. Dakay Vice President- Director, Vice
IDS Tower 10 Institutional Products Chairman and
Minneapolis, MN 55440 Group President,
Financial
Institutions
Division
Regenia David Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Scott M. Digiammarino Group Vice President- None
Suite 500 Washington/Baltimore
8045 Leesburg Pike
Vienna, VA 22182
Bradford L. Drew Group Vice President- None
Two Datran Center Eastern Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
William H. Dudley Director and Executive None
IDS Tower 10 Vice President-
Minneapolis MN 55440 Investment Operations
Roger S. Edgar Senior Vice President None
IDS Tower 10 and Technology Advisor
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Robert M. Elconin Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
<PAGE>
PAGE 46
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Joseph Evanovich Jr. Group Vice President- None
One Old Mill Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Louise P. Evenson Group Vice President- None
Suite 200 San Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Douglas L. Forsberg Group Vice President- None
Suite 100 Portland/Eugene
7931 N. E. Halsey
Portland, OR 97213
William P. Fritz Group Vice President- None
Suite 160 Northern Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
Carl W. Gans Group Vice President- None
8500 Tower Suite 1770 Twin City Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and Vice President
IDS Tower 10 Corporate Treasurer and Treasurer
Minneapolis, MN 55440
Suzanne Graf Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Bruce M. Guarino Group Vice President- None
Suite 1736 Hawaii
1585 Kapiolani Blvd.
Honolulu, HI 96814
<PAGE>
PAGE 47
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Suites 6&7 Northern New England
169 South River Road
Bedford, NH 03110
John R. Hantz Group Vice President- None
Suite 107 Detroit Metro
17177 N. Laurel Park
Livonia, MI 48154
Robert L. Harden Group Vice President- None
Two Constitution Plaza Boston Metro
Boston, MA 02129
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President-Assured None
IDS Tower 10 Assets Product Development
Minneapolis, MN 55440 and Management
Brian M. Heath Group Vice President- None
Suite 150 North Texas
801 E. Campbell Road
Richardson, TX 75081
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
30 Burton Hills Blvd. Eastern Tennessee
Suite 175
Nashville, TN 37215
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations and
Chief Compliance Officer
David R. Hubers Chairman, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
<PAGE>
PAGE 48
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Marietta L. Johns Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Linda B. Keene Vice President- None
IDS Tower 10 Market Development
Minneapolis, MN 55440
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Senior Vice President- Director
IDS Tower 10 Risk Management Products
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
Ste 108 Trestle Bridge V Greater Michigan
5136 Lovers Lane
Kalamazoo, MI 49002
Steven C. Kumagai Director and Senior None
IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management and Business
Systems
Mitre Kutanovski Group Vice President- None
Suite 680 Chicago Metro
8585 Broadway
Merrillville, IN 48410
Edward Labenski Jr. Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
<PAGE>
PAGE 49
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Lori J. Larson Vice President- None
IDS Tower 10 Variable Assets Product
Minneapolis, MN 55440 Development
Ryan R. Larson Vice President- Director and
IDS Tower 10 IPG Product Development Vice
Minneapolis, MN 55440 President-
Product
Development
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
MInneapolis, MN 55440 Manager
Peter A. Lefferts Senior Vice President- None
IDS Tower 10 Corporate Strategy and
Minneapolis, MN 55440 Development
Douglas A. Lennick Director and Executive None
IDS Tower 10 Vice President-Private
Minneapolis, MN 55440 Client Group
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Field Marketing Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President- None
Suite 650 Pittsburgh Metro
5700 Corporate Drive
Pittsburgh, PA 15237
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas W. Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
<PAGE>
PAGE 50
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
Janis E. Miller Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Union Plaza Suite 900 Kansas/Oklahoma
3030 Northwest Expressway
Oklahoma City, OK 73112
Pamela J. Moret Vice President- None
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President- None
Suite 200 At Large
3500 Market Street
Camp Hill, NJ 17011
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Mary Owens Neal Vice President- None
IDS Tower 10 Mature Market Segment
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Information Systems
Minneapolis, MN 55440 Operations
Ronald E. Newton Group Vice President- None
319 Southbridge St. Rhode Island/Central
Auburn, MA 01501 Massachusetts
Thomas V. Nicolosi Group Vice President- None
Suite 220 New York Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
James R. Palmer Vice President- None
IDS Tower 10 Taxes
Minneapolis, MN 55440<PAGE>
PAGE 51
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
One Tower Bridge Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 Geographical Service
Minneapolis, MN 55440 Teams
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Suite 800 Southern Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
Roger B. Rogos Group Vice President- None
One Sarasota Tower Western Florida
Suite 700
Two N. Tamiami Trail
Sarasota, FL 34236
ReBecca K. Roloff Vice President-1994 None
IDS Tower 10 Program Director
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Max G. Roth Group Vice President- None
Suite 201 S IDS Ctr Wisconsin/Upper Michigan
1400 Lombardi Avenue
Green Bay, WI 54304
<PAGE>
PAGE 52
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Robert A. Rudell Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Institutional Retirement
Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven Samsel Director and Senior None
45 Braintree Hill Park Vice President-
Suite 402 Field Management
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Suite 201 Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
William G. Scholz Group Vice President- None
Suite 205 Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
Stuart A. Sedlacek Vice President- Chairman and
IDS Tower 10 Assured Assets President
Minneapolis, MN 55440
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager,
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development
Julian W. Sloter Group Vice Presidnet- None
Ste 1700 Orlando FinCtr Orlando/Jacksonville
800 North Magnolia Ave.
Orlando, FL 32803
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
<PAGE>
PAGE 53
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William A. Smith Vice President and None
IDS Tower 10 Controller-Private
Minneapolis, MN 55440 Client Group
James B. Solberg Group Vice President- None
466 Westdale Mall Eastern Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Suite 1100 Southern California
Two Park Plaza
Irvine, CA 92714
Lois A. Stilwell Group Vice President- None
Suite 433 Outstate Minnesota Area/
9900 East Bren Road North Dakota/Western Wisconsin
Minnetonka, MN 55343
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Neil G. Taylor Group Vice President- None
Suite 425 Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
John R. Thomas Senior Vice President- None
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Senior Vice President None
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
Peter S. Velardi Group Vice President- None
Suite 180 Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338<PAGE>
PAGE 54
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Charles F. Wachendorfer Group Vice President- None
Suite 100 Denver/Salt Lake City/
Stanford Plaza II Albuquerque
7979 East Tufts Ave Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
1010 Main St Suite 2B Field Management
Huntington Beach, CA 92648
Michael L. Weiner Vice President- None
IDS Tower 10 Corporate Tax
Minneapolis, MN 55440 Operations
James M. Weiss Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President- None
IDS Tower 10 Equity and Fixed Income
Minneapolis, MN 55440 Trading
William N. Westhoff Senior Vice President and None
IDS Tower 10 Global Chief Investment
Minneapolis, MN 55440 Officer
Thomas L. White Group Vice President- None
Suite 200 Cleveland Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President- None
Suite 250 Virginia
3951 Westerre Parkway
Richmond, VA 23233
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael R. Woodward Senior Vice President- None
32 Ellicott St Ste 100 Field Management
Batavia, NY 14020<PAGE>
PAGE 55
Item 30. Location of Accounts and Records
American Centurion Life Assurance Company
20 Madison Avenue Extension
Albany, NY 12203
Item 31. Management Services
Not Applicable
Item 32. Undertakings
(a) Registrant undertakes to file a post-effective amendment
to this registration statement as frequently as is
necessary to ensure that the audited financial statements
in the registration statement are never more than 16
months old for so long as payments under the variable
annuity contract may be accepted;
(b) Registrant undertakes to include either (1) as part of
any application to purchase a contract offered by the
prospectus, a space that an applicant can check to
request a Statement of Additional Information, or (2) a
post card of similar written communication affixed to or
included in the prospectus that the applicant can remove
to send for a Statement of Additional Information;
(c) Registrant undertakes to deliver any Statement of
Additional Information and any financial statements
required to be made available under this Form promptly
upon written or oral request.
<PAGE>
PAGE 56
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, American Centurion Life Assurance Company, on
behalf of the Registrant has duly caused this Registration
Statement to be signed on its behalf in the City of Minneapolis,
and State of Minnesota, on the ____ day of January, 1996.
ACL VARIABLE ANNUITY ACCOUNT 1
(Registrant)
By American Centurion Life Assurance Company
(Sponsor)
By /s/ Stuart A. Sedlacek*
Stuart A. Sedlacek
Chairman and President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the ____ day of January, 1996.
Signature Title
/s/ Stuart A. Sedlacek* Director, Chairman and
Stuart A. Sedlacek President
/s/ Jay C. Hatlestad* Director, Vice President
Jay C. Hatlestad and Controller
/s/ Robert C. Auriema* Director
Robert C. Auriema
/s/ Alan R. Dakay* Director
Alan R. Dakay
/s/ Clarence E. Galston* Director
Clarence E. Galston
/s/ Robert A. Hatton* Director
Robert A. Hatton
/s/ William J. Heron Jr.* Director
William J. Heron Jr.
/s/ Richard W. Kling* Director
Richard W. Kling
/s/ Ryan R. Larson* Director
Ryan R. Larson
/s/ Herbert W. Marache* Director
Herbert W. Marache
<PAGE>
PAGE 57
Signature Title
/s/ Kenneth W. Larson* Director
Kenneth W. Larson
/s/ Doretta Rinaldi Director
Doretta Rinaldi
/s/ Anne L. Segal* Director
Anne L. Segal
/s/ Guerdon D. Smith* Director
Guerdon D. Smith
*Signed pursuant to Power of Attorney, filed electronically
herewith.
______________________________
Mary Ellyn Minenko
<PAGE>
PAGE 58
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
ACL VARIABLE ANNUITY ACCOUNT 1
EXHIBIT INDEX
Exhibit 1 Certificate, establishing the ACL Variable Annuity
Account 1 dated December 1, 1995.
Exhibit 4.1 Form of Group Deferred Annuity Certificate for
nonqualified contract (form 38502-NY).
Exhibit 4.2 Form of Group Deferred Annuity Certificate for
qualified contract (form 38503-IRA-NY).
Exhibit 4.3 Form of Group Deferred Annuity Contract (form
38501).
Exhibit 5.1 Form of Group Deferred Variable Annuity Application
(form 32041).
Exhibit 5.2 Form of Variable Annuity Participant Enrollment Form
(form 32027C).
Exhibit 6.1 Amended and Restated Articles of Incorporation of
American Centurion Life.
Exhibit 6.2 Amended By-Laws of American Centurion Life.
Exhibit 6.3 Emergency By-Laws of American Centurion Life.
Exhibit 13 Copy of schedule for computation of each performance
quotation provided in the Registration Statement in
response to Item 21.
Exhibit 14.2 Power of Attorney to sign this Registration
Statement dated December 22, 1995.
<PAGE>
PAGE 1
CERTIFICATE
The undersigned, Mary Jo Olson, Assistant Secretary of American
Centurion Life Assurance Company, a New York corporation, does
hereby certify:
1. That she is the duly elected, qualified and acting Assistant
Secretary of American Centurion Life Assurance Company and
that the following is a true and correct copy of resolutions
duly adopted by the Board of Directors on October 12, 1995 and
that such resolutions remain in full force and effect:
WHEREAS, The Board of Directors has determined that it is
desirable for the Corporation to develop certain variable
annuity contracts and/or certain combination fixed/variable
annuity contracts to be issued by the Corporation; now,
therefore, be it
RESOLVED, That ACL Variable Annuity Account 1, comprised of
one or more subaccounts, is hereby established as a separate
account in accordance with Section 4240, New York Insurance
Law.
RESOLVED FURTHER, That ACL Variable Annuity Account 2,
comprised of one or more subaccounts, is hereby established as
a separate account in accordance with Section 4240, New York
Insurance Law.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to establish such
subaccounts within each separate account as they determine to
be appropriate.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed, as they may deem
appropriate from time to time and in accordance with
applicable laws and regulations to: (i) establish further any
subaccounts within each separate account; (ii) change the
designation of each separate account to another designation;
and (iii) deregister each separate account.
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to accomplish all filings,
registrations and applications for exemptive relief necessary
to carry the foregoing into effect.
IN WITNESS WHEREOF, the undersigned has executed this certificate
and caused the seal of American Centurion Life Assurance Company to
be hereunto affixed this 1st day of December , 1995.
/s/ Mary Jo Olson
Mary Jo Olson
Assistant Secretary
SEAL
<PAGE>
PAGE 1
American Centurion P.O. Box 5555
Life Assurance Company Albany, New York 12205-0555
An American Express Company
GROUP DEFERRED ANNUITY CERTIFICATE
- - - Flexible purchase payments.
- - - Optional fixed dollar or variable accumulation values.
- - - Fixed dollar annuity payments to begin on the annuity start date.
- - - This certificate is nonparticipating.
Annuitant: John Doe Certificate Date: April 1, 1995
Certificate Number: 9910-1234567 Annuity Start Date: April 1, 2015
This annuity certificate summarizes the provisions of the Group
Deferred Annuity Contract specified on the enrollment application.
It does not amend or modify any of the provisions of the Group
Contract. The Group Contract may be inspected by the certificate
owner or annuitant at the Contractholder's office during office
hours.
If the annuitant is living on the Annuity Start Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of the group contract.
We issue this certificate in consideration of your enrollment
application and the initial purchase payment.
Signed for and issued by American Centurion Life Assurance Company
in Albany, New York, as of the certificate date shown above.
ACCUMULATION VALUES, WHEN BASED ON THE INVESTMENT RESULTS OF THE
VARIABLE SUBACCOUNTS, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CERTIFICATE FOR 10 DAYS
If for any reason you are not satisfied with this certificate,
return it to us or our representative within 10 days after you
receive it. We will then cancel this certificate. Upon such
cancellation we will refund the greater of: (1) your purchase
payment without investment earnings, or (2) your certificate value
plus any premium tax charges paid. This certificate will then be
considered void from its start.
President
/s/ Stuart Sedlacek
Secretary
Form 38502-NY 10/95
<PAGE>
PAGE 2
GUIDE TO CERTIFICATE PROVISIONS
Definitions
Important words and meanings/Page 3
General Provisions
Entire contract; Incontestability; Benefits based upon incorrect
data; State Laws; Federal Laws; Reports to owner; Evidence of
survival; Protection of proceeds; Payments by us; Voting rights;
Nonparticipating/Page 4
Ownership and Beneficiary
Owner rights; Change of ownership; Beneficiary; Change of
Beneficiary; Assignment/Page 5
Payments to Beneficiary
Describes options and amounts payable upon death/Page 6
Purchase Payments
Purchase payments amounts and intervals; Payment limits; Allocation
of purchase payments/Page 7
Certificate Value
Describes the fixed and variable account certificate values;
Transfers of certificate values; Certificate administrative charge;
Premium taxes/Page 8
Fixed and Variable Accounts
Describes the variable accounts and subaccounts, accumulation units
and values; Net investment factor; Mortality and expense risk
charge; Annuity unit value/Page 9
Surrender Provisions
Surrender of the certificate for its surrender value; Rules for
surrender/Page 11
Annuity Provisions
When annuity payments begin; Different ways to receive annuity
payments; Determination of payment amounts/Page 12
Table of Settlement Rates
Tables showing the guaranteed fixed annuity payments for the
various payment plans/Page 13
<PAGE>
PAGE 3
CERTIFICATE DATA
Annuitant: John Doe Certificate Date: April 1, 1995
Certificate Number: 9910-1234567 Annuity Start Date: April 1, 2015
Certificate Owner: John Doe
GROUP DEFERRED ANNUITY CERTIFICATE
Upon issuance of this certificate your purchase payments have been
scheduled to be paid as shown below. You may change the amount and
frequency as provided in this certificate. Refer to the purchase
payments provision on Page 7.
Amount Submitted With Application: $100
Scheduled Purchase Payment:
Annual Amount: $1,200
FIXED ACCOUNT AND VARIABLE ACCOUNT INVESTMENT OPTIONS
Variable
Subaccounts Mutual Fund
DCR IDS Life Capital Resource Fund
DSI IDS Life Special Income Fund
DMS IDS Life Moneyshare Fund
DMG IDS Life Managed Fund
DIE IDS Life International Equity Fund
DAG IDS Life Aggressive Growth Fund
DII INVESCO VIF Industrial Income
Fixed Account:
SURRENDER CHARGE: None
CERTIFICATE ADMINISTRATIVE CHARGE: $30 per year. Charge is
currently waived if purchase payments less withdrawals are equal to
or greater than $10,000. We reserve the right to apply the charge
to all certificates regardless of purchase payments made. We also
reserve the right to increase the charge to not more than $50 per
year. See page 8.
PURCHASE PAYMENT LIMITS:
Maximum Minimum
1st certificate year: $1,000,000 Additional Purchase Payment: $100
Each certificate year
thereafter: $ 50,000
Annuitant: John Doe Certificate Number: 9910-1234567
<PAGE>
PAGE 4
Fixed Account
Table of Guaranteed Minimum Certificate and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
certificate and surrender values based on these assumptions: (1)
$100 purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $30 annual certificate administrative charge (waived
when purchase payments equals or exceeds $10,000). If purchase
payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this certificate.
<TABLE>
<CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Certificate Fixed Account Fixed Account Certificate Fixed Account Fixed Account
Year Certificate Value Surrender Value Year Certificate Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $1,189.41 $1,189.41 11 $15,359.25 $15,359.25
2 2,414.51 2,414.51 12 17,039.44 17,039.44
3 3,676.35 3,676.35 13 18,770.04 18,770.04
4 4,976.06 4,976.06 14 20,552.55 20,552.55
5 6,314.75 6,314.75 15 22,388.54 22,388.54
6 7,693.60 7,693.60 16 24,279.61 24,279.61
7 9,113.82 9,113.82 17 26,227.41 26,227.41
8 10,606.65 10,606.65 18 28,233.64 28,233.64
9 12,144.26 12,144.26 19 30,300.06 30,300.06
10 13,728.00 13,728.00 20 32,428.48 32,428.48
</TABLE>
Variable account certificate and surrender values are not
guaranteed. Information concerning certificate and surrender
values will be provided to you at any time upon written request.
As of the date this certificate was issued, any amounts allocated
to the fixed account will earn interest, for the first year, at the
rate of 4.00% compounded annually. If a new rate is declared, it
will apply to amounts paid or allocated to the fixed account after
the new rate is effective.
<PAGE>
PAGE 5
Annuitant: John Doe Certificate Number: 9910-1234567
Paid-Up Fixed Dollar Annuity Table
The table below shows the guaranteed monthly fixed dollar annuity
payment (based on annuity payment Plan B of 10 years certain and
life) if monthly purchase payments are paid for the number of years
indicated and then left to accumulate to the assumed retirement
date.* The amounts shown are based on the following assumptions:
(1) $100 monthly purchase payments are received by the company at
the beginning of each certificate month and allocated to the fixed
account; and (2) there have been no surrenders or premium tax
charges. Otherwise, the amounts below will be adjusted in
accordance with the provisions of this certificate.
* Assumed retirement date is equal to the later of: (1) the
annuitant's age 65 certificate anniversary; or (2) the 10th
certificate anniversary; but in no event later than the
annuitant's age 75 certificate anniversary.
<TABLE>
<CAPTION>
Monthly Fixed Monthly Fixed
Number of Dollar Annuity Number of Dollar Annuity
Years Purchase Payment at Assumed Years Purchase Payment at Assumed
Payments Made Start Date Payments Made Start Date
<C> <C> <C> <C>
1 $ 6.97 11 $ 129.81
2 20.42 12 139.82
3 33.47 13 149.53
4 46.60 14 158.97
5 60.11 15 168.12
6 73.32 16 177.01
7 85.89 17 185.64
8 97.96 18 194.02
9 108.89 19 202.16
10 119.51 20 210.06
25 246.23
30 277.44
</TABLE>
If purchase payments are paid to the assumed retirement date, the
guaranteed fixed account certificate value at such date will be
$57,560.35 and the guaranteed monthly fixed dollar annuity payment
will be $277.44.
<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this certificate. When we
use these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of a certificate. The owner may be someone other than
the annuitant. The owner may be changed as provided in this
certificate.
we, our, us
American Centurion Life Assurance Company
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the certificate value prior to the Annuity Start Date.
certificate date
It is the date from which certificate anniversaries, certificate
years, certificate months are determined. Your certificate date
shown under Certificate Data.
certificate anniversary
The same day and month as the certificate date each year that the
certificate remains in force.
annuity start date
The date shown under Certificate Data on which annuity payments are
to begin. This date may be changed as provided in this
certificate. You will be notified prior to the annuity start date
in order to select an appropriate annuity payment plan.
settlement
The application of the certificate value of this certificate to
under an Annuity Payments Plan to provide annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
written request
A request in writing signed by you and delivered to us at our
administrative office.
<PAGE>
PAGE 7
subaccounts
The portfolios of the Variable Account. The subaccounts available
on the certificate date are named under Certificate Data.
certificate value
The sum of the Fixed Account Certificate Value (which receives a
declared interest rate) and the Variable Account Certificate Value
(which varies with the investment performance of the elected
subaccounts) for this certificate.
<PAGE>
PAGE 8
GENERAL PROVISIONS
General information about the contract and certificate.
Entire Contract
The entire contract consists of: The group contract form and the
application which is attached to the Group Contract; and the
enrollment application.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under the contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under the contract.
Incontestable
This certificate is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will
immediately be paid in a single sum with an interest credit of 6%
per annum. Any overpayments made by us will be subtracted from the
future payments together with an interest charge of 6% per annum.
State Laws
This certificate is governed by the law of the state in which it is
delivered and by the state in which the Group Contract is delivered
to the group contractholder. Any paid-up annuity, cash surrender
or death benefit is not less than the minimum benefit required by
any statute of such state. The values and benefits of this
contract are at least equal to those required by such state.
Federal Laws
This certificate is intended to qualify as an annuity certificate
for Federal income tax purposes. To that end, the provisions of
this contract and certificate are to be interpreted to ensure or
maintain such tax qualification, despite any other provisions to
the contrary. We reserve the right to amend the contract and
certificate to reflect any clarifications that may be needed or is
appropriate to maintain such qualification or to conform them to
any applicable changes in the tax qualification requirements. We
will obtain the approval of the State of New York and any other
regulatory authority for the modifications. We will provide you
with notice and copy of any such modifications, approved for use in
the state of jurisdiction, and an explanation of their effect upon
your certificate. You may reject the modifications by writing to
us.
Reports to Owner
At least once a year we will send you a statement showing the
certificate value and the cash surrender value of this certificate.
This statement will be based on any laws or regulations that apply
to certificates of this type.
<PAGE>
PAGE 9
Evidence of Survival
Where any payments under a certificate depend on the recipient or
annuitant being alive on a certain date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making payments.
Protection of Proceeds
Payments under this certificate are not assignable by any
beneficiary prior to the time they are due. To the extent allowed
by law, payments are not subject to the claims of creditors or to
legal process.
Payments By Us
All sums payable by us are payable at our home office. Any
surrender payment based on the variable account certificate value
shall be payable only from the variable subaccounts.
Voting Rights
As long as federal law requires, we will give certain voting rights
to certificate owners. As certificate owner, if you have voting
rights we will send a notice to you telling you the time and place
of a shareholder meeting. The notice will also explain matters to
be voted upon and how many votes you get.
Nonparticipating
The contract and certificate do not participate in the profits or
surplus of the company.
<PAGE>
PAGE 10
OWNERSHIP AND BENEFICIARY
This section describes information about the certificate owner and
beneficiary.
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in the certificate or allowed by us.
- - - Name a different owner for the certificate;
- - - Name or change the beneficiary.
- - - Assign the certificate to another person.
- - - Withdraw money from the certificate.
- - - Select an annuity payment plan and specify the annuity start
date;
- - - Receive the income payments if an annuity payment plan is
started.
- - - Name or change the person who is to receive payments if an
annuity plan is chosen.
- - - Cancel the certificate and receive its value.
These rights are more fully described below and on the following
pages.
Change of Ownership
You can change the ownership of this certificate by written request
on a form approved by us. The change must be made while the
annuitant is living. Once the change is received by us, it will
take effect as of the date of your request, subject to any action
taken or payment made by us before the receipt.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this certificate if you or the annuitant die
while this certificate is in force.
Unless you have provided otherwise, only those beneficiaries who
are living on the date of death may share in the benefits, if any.
If no beneficiary is then living, we will pay the benefits to you,
if living, otherwise to the your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
<PAGE>
PAGE 11
Assignment
While the annuitant is living, you can assign this certificate or
any interest in it. Your interest and the interest of any
beneficiary is subject to the interest of the assignee. An
assignment is not a change of ownership and an assignee is not an
owner as these terms are used in this certificate. Any amounts
payable to the assignee will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was received at our home office.
We are not responsible for the validity of any assignment.
<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY
This section of the certificate describes what happens and what is
payable after the death of the owner or annuitant.
Death Benefit Before the Annuity Start Date
If the annuitant or owner dies before the annuity start date while
this certificate is in force we will pay to the beneficiary the
greater of:
1. the certificate value; or
2. the purchase payments paid less any amounts surrendered.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant or owner whichever first
occurs. The beneficiary may elect to receive payment anytime
within 5 years after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life expectancy
of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions section shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the certificate value as of the valuation date on
or next following the date on which due proof of death is received
at our home office.
Spouse's Option to Continue Certificate Upon Owner's Death
If the owner's death occurs prior to the annuity start date, the
owner's spouse, if designated as sole beneficiary, may elect in
writing to forego receipt of the death benefit and instead continue
this certificate in force as owner. The election by the spouse
must be made within 60 days after we receive due proof of death.
Death Benefit After the Annuity Start Date
If the annuitant or owner dies after the annuity start date, the
amount payable, if any, will be as provided in the Annuity Payment
Plan then in effect.
<PAGE>
PAGE 13
PURCHASE PAYMENTS
This section describes the rules about how you can make payments
into the certificate.
Purchase Payments
Purchase payments are the payments you make for this certificate
and the benefits it provides. Purchase payments must be paid or
mailed to us at our home office or to an authorized agent. If
requested, we'll give you a receipt for your purchase payments.
Upon payment to us, purchase payments become our property.
Net purchase payments are that part of your purchase payment
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this certificate terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of purchase payments; or (3) change the interval of your purchase
payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments for a
certificate in the first or later certificate years may not exceed
the amounts shown under Certificate Data.
Minimum Purchase Payments - The minimum initial purchase payment is
$1,000 unless you establish a bank authorization of at least $100
per month which on an annualized basis equals $1,200.
We also reserve the right to cancel this certificate if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $1,000 in purchase payments have been paid under the
certificate. In this event we will give you 30 days written notice
of our intent to cancel this certificate. Upon such cancellation
we will pay you the contract value in one sum. The certificate
will then terminate.
Allocation of Purchase Payments
You may allocate your purchase payments to the fixed account and
among one or more of the variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%.
The entire portion of any net purchase payment that you allocate to
the Variable Subaccounts will be invested in the Moneyshare
subaccount until the estimated end of the "Right to Examine the
Certificate" period. The certificate value in the Moneyshare
subaccount will then be transferred to the subaccounts you elected
on the enrollment application.
<PAGE>
PAGE 14
The entire portion of any net purchase payment that you allocate to
the Fixed Account will be invested in the Fixed Account when
received.
Additional net purchase payments received after the "Right to
Examine the Certificate" period will be allocated to the Fixed
Account and the Variable Subaccounts as you elected on the
enrollment application unless you elect a different allocation. By
written request, or by another method agreed to by us, you may
change your purchase payment allocations.
The first net purchase payment will be allocated as of the end of
the valuation period during which we make an affirmative decision
to issue the certificate. Net purchase payments after the first
will be allocated as of the end of the valuation period during
which we receive the payment at our home office.
<PAGE>
PAGE 15
CERTIFICATE VALUE
This section explains the main parts of the certificate that
determine its value and charges that may apply.
Certificate Value
The certificate value at any time is the sum of: (1) the Fixed
Account Certificate Value; and (2) the Variable Account Certificate
Value.
If: (1) part or all of the certificate value is surrendered; or
(2) charges described herein are made against the certificate
value; then a number of accumulation units from the variable
subaccounts and an amount from the fixed account will be deducted
to equal such amount. For surrenders, deductions will be made from
the fixed or variable subaccounts that you specify. Otherwise, the
number of units from the variable subaccounts and the amount from
the fixed account will be deducted in the same proportion that your
interest in each bears to the total certificate value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be: (1) the
sum of all amounts credited to the fixed account under this
certificate; less (2) any amounts deducted for charges or
surrenders.
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates we determine from
time to time. However, we guarantee that the rate will not be less
than the Guaranteed Interest Rate shown under Certificate Data.
Variable Account Certificate Value
The variable account certificate value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Transfers of Certificate Values
While this certificate is in force prior to the annuity start date,
transfer of certificate values may be made as outlined below:
- - - between the variable subaccounts; or
- - - from the variable subaccount(s) to the fixed account; or
- - - from the fixed account to the variable subaccount(s).
- - - The minimum transfer amount is $100, or if less, the entire
value in the account from which the transfer is being made.
Smaller minimums may apply to automated transfer procedures.
You may make a transfer by written request. Transfer requests may
also be made according to automated transfer procedures that are
then currently in effect, if any. If you make 12 transfer requests
in a certificate year we charge $25 for each additional request.
This transfer privilege may be suspended or modified by us at any
time.
<PAGE>
PAGE 16
Certificate Administrative Charge
We charge a fee for establishing and maintaining our records for
this certificate. The charge is $30 per year and is deducted from
the certificate value at the end of each certificate year prior to
the annuity start date. We currently waive this charge if total
purchase payments, less any withdrawals, equal at least $10,000.
The charge does not apply after the annuity start date. Although
we do not now intend to charge more than $30 per year, we reserve
the right to increase this annual charge to up to $50 if warranted
by the expenses we incur. We also reserve the right to assess this
charge, prior to the annuity start date against all certificate
regardless of the amount of purchase payments you have made.
Premium Tax Charges
If a premium tax is imposed by any taxing authority, we reserve the
right to deduct the amount of the tax from your purchase payments
when they are received or from the certificate value either at the
time of surrender or when you elect an annuity payment plan.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNT
This section provides detailed information about the variable
account, accumulation units of the variable subaccounts and how
they are valued.
The Fixed Account
The fixed account is our general account. It is made up of all our
assets other than (1) those in the variable accounts; and (2) those
in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Certificate
Data. We have allocated a part of our assets for this and other
similar certificates and contracts to the variable subaccounts.
Such assets remain our property. However, they may not be charged
with the liabilities from any other business in which we may take
part.
Investments of the Variable Account
Purchase payments applied to the variable subaccount will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that account
under Certificate Data or as later added or changed.
We may change the mutual funds from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Certificate Data. We may also add additional subaccounts investing
in other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this certificate is delivered.
Valuation of Assets
Mutual fund shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payments and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this certificate. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
The amount of any Certificate Administrative Charge, or other
applicable charges or partial surrender from the Variable Account
Certificate Value will reduce the number of units credited to the
<PAGE>
PAGE 18
certificate in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the
certificate in that subaccount while a transfer into a subaccount
will increase the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable subaccount for
the last prior valuation period is multiplied by the net
investment factor for the same account for the next
following valuation period. The result is the accumulation
unit value. The value of an accumulation unit may increase
or decrease from one valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund held
in the variable subaccount determined at the end of the
current valuation period; plus
b. the per share amount of any dividend or capital gain
distribution made by the mutual fund held in the
variable subaccount, if the "ex-dividend" date occurs
during the current valuation period.
(2) is the net asset value per share of the mutual fund held in
the variable subaccount, determined at the end of the last
prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under certificates of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
<PAGE>
PAGE 19
SURRENDER PROVISIONS
This section describes how you may obtain some or all of the value
of your certificate other than through an Annuity Payment Plan.
Surrender
By written request and subject to the rules below you may:
1. surrender this certificate for the total surrender value; or
2. partially surrender this certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus any applicable premium tax.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method agreed to
by us: (a) while the certificate is in force; and (b) prior
to the earlier of the annuity start date or the death of the
annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $100 or the certificate value, if less.
3. The amount surrendered, will normally be paid to you within
seven days of the receipt of your written request and this
certificate, if required. In accordance with state laws for
surrenders from the fixed account, we have the right to
defer payment to you for up to 6 months from the date we
receive your request.
4. For partial surrenders, if you do not specify from which
accounts the surrender is to be made, the surrender will be
made from the variable subaccounts and fixed account in the
same proportion as your interest in each bears to the
certificate value.
Upon surrender for the full surrender value this certificate will
terminate. We may require that you return the certificate to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted;
or
3. When an emergency exists as a result of which: (a) disposal
of securities held in the variable subaccounts is not
reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net assets
of the variable subaccounts; or
<PAGE>
PAGE 20
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of
security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
<PAGE>
PAGE 21
ANNUITY PROVISIONS
This section describes using the certificate value as a source of
guaranteed income and different ways to structure that income.
Settlement
When settlement occurs, the certificate value less any applicable
premium taxes will be applied to make annuity payments under an
Annuity Payment Plan. The first payment will be made as of the
annuity start date. This date is shown under Certificate Data
unless you have changed it. Before payments begin we will require
satisfactory proof that the annuitant is alive. We may also
require that you exchange this certificate for a supplemental
contract or certificate which provides the annuity payments.
Change of Annuity Start Date
You may change the annuity start date shown for this certificate.
Tell us the new date by written request. Any change must be
received by us at least 30 days prior to the date being changed.
However the annuity start date may not be later than the
annuitant's 85th birthday. The annuity start date you select must
be at least 30 days after we receive your written request.
Annuity Payment Plans
Subject to the terms of this certificate annuity payments will be
made on a fixed dollar basis. You can schedule receipt of annuity
payments according to one of the Plans A through E below or another
plan agreed to by us.
Plan A - This provides monthly annuity payments during the
lifetime of the annuitant. No payments will be made after
the annuitant dies.
Plan B - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that
payments will be made for a period of at least five, ten or
fifteen years. You must select the guaranteed period.
Plan C - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that
payments will be made for a certain number of months. We
determine the number of months by dividing the amount
applied under this plan by the amount of the first monthly
annuity payment.
Plan D - Monthly payments will be paid during the lifetime
of the annuitant and a joint annuitant. When either the
annuitant or the joint annuitant dies we will continue to
make monthly payments during the lifetime of the survivor.
No payments will be paid after the death of both the
annuitant and joint annuitant.
Plan E - (Installments for a specified period) This provides
monthly annuity payments for a period of years. The period
of years may be no less than 10 nor more than 30.
<PAGE>
PAGE 22
By written request to us at least 3- days before the Annuity Start
Date, you may select the Plan. If at least 30 days before the
Annuity Start Date we have not received your written request to
select a Plan, we will make payments according to Plan B with
payments guaranteed for ten years.
If you select a Plan that has a payment amount that is the same as
another Plan having a longer guarantee period, then the Plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide a monthly
payment of at least $20, we have the right to make a lump sum
payment of the certificate value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the certificate value will be applied to the applicable
Annuity Table. This will be done in accordance with the Payment
Plan chosen. The amount payable for each $1,000 so applied is
shown in Table of Settlement Rates on Page 13.
<PAGE>
PAGE 23
TABLE OF SETTLEMENT RATES
Rates used for various Annuity Payment Plans.
The amount of the first and all subsequent monthly fixed dollar
annuity payments for each $1,000 of value applied under any payment
plan will be based on our fixed dollar Table of Settlement Rates in
effect on the annuity start date. Such rates are guaranteed to be
not less than those shown in the table below. In addition, the
amount of such fixed annuity payments will not be less than that
which would be provided if a single premium immediate annuity
certificate then offered by us to annuitants in the same class were
to be purchased with the greater of: 1. the cash surrender value
of the certificate; or 2. 95% of the accumulation value of the
certificate. The amount of such annuity payments under Plans A, B,
and C will depend upon the sex and adjusted age of the annuitant on
the annuity start date. The amount of such annuity payments under
Plan D will depend upon the sex and the adjusted age of the
annuitant and joint annuitant on the annuity start date. Adjusted
age shall be equal to the age nearest birthday minus an
"adjustment" depending on the calendar year of birth of the
annuitant and joint annuitant as follows:
Calendar Calendar
Year of Year of
Annuitant's Annuitant's
Birth Adjustment Birth Adjustment
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
<PAGE>
PAGE 24
<TABLE>
<CAPTION>
Dollar Amount of Each Monthly Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Joint Annuitant
Life 5 Years 10 Years 15 Years With Adj.
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.66 3.42 3.65 3.42 3.64 3.42 3.63 3.41 3.57 3.38 40 3.05 3.14 3.23 3.32 3.40
45 3.93 3.63 3.92 3.63 3.90 3.63 3.87 3.61 3.80 3.57 45 3.17 3.28 3.39 3.50 3.61
50 4.27 3.90 4.26 3.90 4.22 3.89 4.17 3.86 4.08 3.80 50 3.32 3.46 3.60 3.75 3.88
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
70 7.23 6.25 7.07 6.18 6.36 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 6.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
80 11.06 9.53 10.17 9.07 8.33 7.89 6.66 6.55 8.32 7.64 80 5.90 6.78 7.77 8.76 9.57
85 14.16 12.48 12.12 11.19 8.97 8.74 6.81 6.77 9.85 9.18 85 7.07 8.36 9.78 11.11 12.13
* Adjusted age of annuitant. M=Male F=Female
The table above is based on the "1983 Individual Annuitant Mortality Table A." assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the table below are based on
assuming a 3% annual effective rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $9.61 17 $6.23 24 $4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 25
GROUP DEFERRED ANNUITY CERTIFICATE
- - - Flexible purchase payments.
- - - Optional fixed dollar or variable accumulation values.
- - - Fixed dollar annuity payments to begin on the annuity start date.
- - - This certificate is nonparticipating.
American Centurion Life Assurance Company
P.O. Box 5550
Albany, NY 12205-0550
<PAGE>
PAGE 1
American Centurion P.O. Box 5555
Life Assurance Company Albany, New York 12205-0555
An American Express Company
GROUP DEFERRED ANNUITY CERTIFICATE
- - - Flexible purchase payments.
- - - Optional fixed dollar or variable accumulation values.
- - - Fixed dollar annuity payments to begin on the annuity start date.
- - - This certificate is nonparticipating.
Annuitant: John Doe Certificate Date: April 1, 1995
Certificate Number: 9910-1234567 Annuity Start Date: April 1, 2015
This annuity certificate summarized the provisions of the Group
Deferred Annuity Contract specified on the enrollment application.
It does not amend or modify any of the provisions of the Group
Contract. The Group Contract may be inspected by the certificate
owner or annuitant at the Contractholder's office during office
hours.
If the annuitant is living on the Annuity Start Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of the group contract.
We issue this certificate in consideration of your enrollment
application and the initial purchase payment.
Signed for and issued by American Centurion Life Assurance Company
in Albany, New York, as of the certificate date shown above.
ACCUMULATION VALUES, WHEN BASED ON THE INVESTMENT RESULTS OF THE
VARIABLE SUBACCOUNTS, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CERTIFICATE FOR 10 DAYS
If for any reason the contractholder is not satisfied with this
certificate, return it to us or our representative within 10 days
after you receive it. We will then cancel this certificate. Upon
such cancellation we will refund the greater of: (1) your purchase
payment without investment earnings, or (2) your certificate value
plus any premium tax charges paid. This certificate will then be
considered void from its start.
President
/s/ Stuart Sedlacek
Secretary
Form 38503-IRA-NY 10/95
<PAGE>
PAGE 2
GUIDE TO CERTIFICATE PROVISIONS
Definitions
Important words and meanings/Page 3
General Provisions
Entire contract; Incontestability; Benefits based upon incorrect
data; State Laws; Federal Laws; Reports to owner; Evidence of
survival; Protection of proceeds; Payments by us; Voting rights;
Nonparticipating/Page 4
Ownership and Beneficiary
Owner rights; Change of ownership; Beneficiary; Change of
Beneficiary/Page 5
Payments to Beneficiary
Describes options and amounts payable upon death/Page 6
Purchase Payments
Purchase payments amounts and intervals; Payment limits; Allocation
of purchase payments/Page 7
Certificate Value
Describes the fixed and variable account certificate values;
Transfers of certificate values; Certificate administrative charge;
Premium taxes/Page 8
Fixed and Variable Accounts
Describes the variable accounts and subaccounts, accumulation units
and values; Net investment factor; Mortality and expense risk
charge; Annuity unit value/Page 9
Surrender Provisions
Surrender of the certificate for its surrender value; Rules for
surrender/Page 11
Annuity Provisions
When annuity payments begin; Different ways to receive annuity
payments; Determination of payment amounts/Page 12
Table of Settlement Rates
Tables showing the fixed annuity payments for the various payment
plans/Page 13
<PAGE>
PAGE 3
CERTIFICATE DATA
Annuitant: John Doe Certificate Date: April 1, 1995
Certificate Number: 9910-1234567 Annuity Start Date: April 1, 2015
Certificate Owner: John Doe
GROUP DEFERRED ANNUITY CERTIFICATE
Upon issuance of this certificate your purchase payments have been
scheduled to be paid as shown below. You may change the amount and
frequency as provided in this certificate. Refer to the purchase
payments provision on Page 7.
Amount Submitted With Application: $100
Scheduled Purchase Payment:
Annual Amount: $1,200
FIXED ACCOUNT AND VARIABLE ACCOUNT INVESTMENT OPTIONS
Variable
Subaccounts Mutual Fund
DCR IDS Life Capital Resource Fund
DSI IDS Life Special Income Fund
DMS IDS Life Moneyshare Fund
DMG IDS Life Managed Fund
DIE IDS Life International Equity Fund
DAG IDS Life Aggressive Growth Fund
DII INVESCO VIF Industrial Income
Fixed Account:
SURRENDER CHARGE: None
CERTIFICATE ADMINISTRATIVE CHARGE: $30 per year. Charge is
currently waived if purchase payments less withdrawals are equal to
or greater than $10,000. We reserve the right to apply the charge
to all certificates regardless of purchase payments made. We also
reserve the right to increase the charge to not more than $50 per
year. See page 8.
PURCHASE PAYMENT LIMITS:
Maximum Purchase Payments Permitted Subject to IRA Limits:
Maximum Minimum
1st certificate year: $1,000,000 Additional Purchase Payment: $100
Each certificate year
thereafter: $ 50,000
Annuitant: John Doe Certificate Number: 9910-1234567
<PAGE>
PAGE 4
Fixed Account
Table of Guaranteed Minimum Certificate and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
certificate and surrender values based on these assumptions: (1)
$100 purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $30 annual certificate administrative charge (waived
when purchase payments equals or exceeds $10,000). If purchase
payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this certificate.
<TABLE>
<CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Certificate Fixed Account Fixed Account Certificate Fixed Account Fixed Account
Year Certificate Value Surrender Value Year Certificate Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $1,189.41 $1,189.41 11 $15,359.25 $15,359.25
2 2,414.51 2,414.51 12 17,039.44 17,039.44
3 3,676.35 3,676.35 13 18,770.04 18,770.04
4 4,976.06 4,976.06 14 20,552.55 20,552.55
5 6,314.75 6,314.75 15 22,388.54 22,388.54
6 7,693.60 7,693.60 16 24,279.61 24,279.61
7 9,113.82 9,113.82 17 26,227.41 26,227.41
8 10,606.65 10,606.65 18 28,233.64 28,233.64
9 12,144.26 12,144.26 19 30,300.06 30,300.06
10 13,728.00 13,728.00 20 32,428.48 32,428.48
</TABLE>
Variable account certificate and surrender values are not
guaranteed. Information concerning certificate and surrender
values will be provided to you at any time upon written request.
As of the date this certificate was issued, any amounts allocated
to the fixed account will earn interest, for the first year, at the
rate of 4.00% compounded annually. If a new rate is declared, it
will apply to amounts paid or allocated to the fixed account after
the new rate is effective.
<PAGE>
PAGE 5
Annuitant: John Doe Certificate Number: 9910-1234567
Paid-Up Fixed Dollar Annuity Table
The table below shows the guaranteed monthly fixed dollar annuity
payment (based on annuity payment Plan B of 10 years certain and
life) if monthly purchase payments are paid for the number of years
indicated and then left to accumulate to the assumed retirement
date.* The amounts shown are based on the following assumptions:
(1) $100 monthly purchase payments are received by the company at
the beginning of each certificate month and allocated to the fixed
account; and (2) there have been no surrenders or premium tax
charges. Otherwise, the amounts below will be adjusted in
accordance with the provisions of this certificate.
* Assumed retirement date is equal to the later of: (1) the
annuitant's age 65 certificate anniversary; or (2) the 10th
certificate anniversary; but in no event later than the
annuitant's age 75 certificate anniversary.
<TABLE>
<CAPTION>
Monthly Fixed Monthly Fixed
Number of Dollar Annuity Number of Dollar Annuity
Years Purchase Payment at Assumed Years Purchase Payment at Assumed
Payments Made Start Date Payments Made Start Date
<C> <C> <C> <C>
1 $ 6.97 11 $ 129.81
2 20.42 12 139.82
3 33.47 13 149.53
4 46.60 14 158.97
5 60.11 15 168.12
6 73.32 16 177.01
7 85.89 17 185.64
8 97.96 18 194.02
9 108.89 19 202.16
10 119.51 20 210.06
25 246.23
30 277.44
</TABLE>
If purchase payments are paid to the assumed retirement date, the
guaranteed fixed account certificate value at such date will be
$57,560.35 and the guaranteed monthly fixed dollar annuity payment
will be $277.44.
<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this certificate. When we
use these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of a certificate. The owner may be someone other than
the annuitant. The owner may be changed as provided in this
certificate.
we, our, us
American Centurion Life Assurance Company
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the certificate value prior to the Annuity Start Date.
certificate date
It is the date from which certificate anniversaries, certificate
years, certificate months are determined. Your certificate date
shown under Certificate Data.
certificate anniversary
The same day and month as the certificate date each year that the
certificate remains in force.
annuity start date
The date shown under Certificate Data on which annuity payments are
to begin. This date may be changed as provided in this
certificate. You will be notified prior to the annuity start date
in order to select an appropriate annuity payment plan.
settlement
The application of the certificate value of this certificate to
under an Annuity Payments Plan to provide annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 7
subaccounts
The portfolios of the Variable Account. The subaccounts available
on the certificate date are named under Certificate Data.
certificate value
The sum of the Fixed Account Certificate Value (which receives a
declared interest rate) and the Variable Account Certificate Value
(which varies with the investment performance of the elected
subaccounts) for this certificate.
<PAGE>
PAGE 8
GENERAL PROVISIONS
General information about the contract and certificate.
Entire Contract
The entire contract consists of: The group contract form and the
application which is attached to the Group Contract; and the
enrollment application.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under the contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under the contract.
Incontestable
This certificate is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will
immediately be paid in a single sum with an interest credit of 6%
per annum. Any overpayments made by us will be subtracted from the
future payments together with an interest charge of 6% per annum.
State Laws
This certificate is governed by the law of the state in which it is
delivered and by the state in which the Group Contract is delivered
to the group contractholder. Any paid-up annuity, cash surrender
or death benefit is not less than the minimum benefit required by
any statute of such state. The values and benefits of this
contract are at least equal to those required by such state.
Federal Laws
This certificate is intended to qualify as an annuity certificate
for Federal income tax purposes. To that end, the provisions of
this contract and certificate are to be interpreted to ensure or
maintain such tax qualification, despite any other provisions to
the contrary. We reserve the right to amend the contract and
certificate to reflect any clarifications that may be needed or is
appropriate to maintain such qualification or to conform them to
any applicable changes in the tax qualification requirements. We
will obtain the approval of the State of New York and any other
regulatory authority for the modifications. We will provide you
with notice and copy of any such modifications, approved for use in
the state of jurisdiction, and an explanation of their effect upon
your certificate. You may reject the modifications by writing to
us.
Reports to Owner
At least once a year we will send you a statement showing the
certificate value and the cash surrender value of this certificate.
This statement will be based on any laws or regulations that apply
to certificates of this type.
<PAGE>
PAGE 9
Evidence of Survival
Where any payments under a certificate depend on the recipient or
annuitant being alive on a certain date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making payments.
Protection of Proceeds
Payments under this certificate are not assignable by any
beneficiary prior to the time they are due. To the extent allowed
by law, payments are not subject to the claims of creditors or to
legal process.
Payments By Us
All sums payable by us are payable at our home office. Any
surrender payment based on the variable account certificate value
shall be payable only from the variable accounts.
Voting Rights
As long as federal law requires, we will give certain voting rights
to certificate owners. As certificate owner, if you have voting
rights we will send a notice to you telling you the time and place
of a shareholder meeting. The notice will also explain matters to
be voted upon and how many votes you get.
Nonparticipating
The contract and certificate do not participate in the profits or
surplus of the company.
<PAGE>
PAGE 10
OWNERSHIP AND BENEFICIARY
This section describes information about the certificate owner and
beneficiary.
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in the certificate or allowed by us. These include the right to:
- - - Name or change the beneficiary.
- - - Withdraw money from the contract.
- - - Select an annuity payment plan and specify the annuity start
date;
- - - Receive the income payments if an annuity payment plan is
started.
- - - Name or change the person who is to receive payments if an
annuity plan is chosen.
- - - Cancel the certificate and receive its value.
These rights are more fully described below and on the following
pages.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for the performance
of an obligation or for any other purpose to any person other than
as may be required or permitted under Section 408 or the Internal
Revenue Code of 1986, as amended. Your interest in this contract
may be transferred to your former spouse, if any, under a divorse
decree or a written instrument incident to such divorce.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this certificate if you or the annuitant die
while this certificate is in force.
Unless you have provided otherwise, only those beneficiaries who
are living on the date of death may share in the benefits, if any.
If no beneficiary is then living, we will pay the benefits to you,
if living, otherwise to the your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY
This section of the certificate describes what happens and what is
payable after the death of the owner or annuitant.
Death Benefit Before the Annuity Start Date
If the annuitant or owner dies before the annuity start date while
this certificate is in force we will pay to the beneficiary the
greater of:
1. the certificate value; or
2. the purchase payments paid less any amounts surrendered.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant or owner, whichever first
occurs. The beneficiary may elect to receive payment anytime
within 5 years after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life expectancy
of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions section shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the certificate value as of the valuation date on
or next following the date on which due proof of death is received
at our home office.
Spouse Option to Continue Certificate Upon Owner's Death
If the owner's death occurs prior to the annuity start date, the
owner's spouse, if designated as sole beneficiary, may elect in
writing to forego receipt of the death benefit and instead continue
this certificate in force as owner. The election by the spouse
must be made within 60 days after we receive due proof of death.
Death Benefit After the Annuity Start Date
If the annuitant or owner dies after the annuity start date, the
amount payable, if any, will be as provided in the Annuity Payment
Plan then in effect.
<PAGE>
PAGE 12
PURCHASE PAYMENTS
This section describes the rules about how you can make payments
into the certificate.
Purchase Payments
Purchase payments are the payments you make for this certificate
and the benefits it provides. Purchase payments must be paid or
mailed to us at our home office or to an authorized agent. If
requested, we'll give you a receipt for your purchase payments.
Upon payment to us, purchase payments become our property.
Net purchase payments are that part of your purchase payment
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date the certificate terminated by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of purchase payments; or (3) change the interval of your purchase
payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments for a
certificate in the first or later certificate years may not exceed
the amounts shown under Certificate Data.
Minimum Purchase Payments - The minimum initial purchase payment is
$1,000 unless you establish a bank authorization of at least $100
per month which on an annualized basis equals $1,200.
In addition, except as provided in this paragraph, the total
purchase payments for any taxable year may not exceed $2,000, or
$2,250 in the event of a non-working spouse. In the case of a
rollover contribution described in Sections 402(a)(5), 402(a)(7),
403(a)(4), 403(b)(8) or, 408(d)(3), of the Internal Revenue Code of
1986, as amended, there is no limit on the amount of your purchase
payment. All purchase payments must be made in cash. If you die
before your entire interest in this certificate has been
distributed to you, and your beneficiary is other than your
surviving spouse, no additional purchase payments will be accepted
from your beneficiary under this certificate.
We also reserve the right to cancel this certificate if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $1,000 in purchase payments have been paid under the
certificate. In this event we will give you 30 days written notice
of our intent to cancel this certificate. Upon such cancellation
we will pay you the contract value in one sum. The certificate
will then terminate.
<PAGE>
PAGE 13
Allocation of Purchase Payments
You may allocate your purchase payments to the fixed account and
among one or more of the variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%.
The entire portion of any net purchase payment that you allocate to
the Variable Subaccounts will be invested in the Moneyshare
subaccount until the estimated end of the "Right to Examine the
Certificate" period. The certificate value in the Moneyshare
subaccount will then be transferred to the subaccounts you elected
on the enrollment application.
The entire portion of any net purchase payment that you allocate to
the Fixed Account will be invested in the Fixed Account when
received.
Additional net purchase payments received after the "Right to
Examine the Certificate" period will be allocated to the Fixed
Account and the Variable Subaccounts as you elected on the
enrollment application unless you elect a different allocation. By
written request, or by another method agreed to by us, you may
change your purchase payment allocations.
The first net purchase payment will be allocated as of the end of
the valuation period during which we make an affirmative decision
to issue the certificate. Net purchase payments after the first
will be allocated as of the end of the valuation period during
which we receive the payment at our home office.
<PAGE>
PAGE 14
CERTIFICATE VALUE
This section explains the main parts of the certificate that
determine its value and charges that may apply.
Certificate Value
The certificate value at any time is the sum of: (1) the Fixed
Account Certificate Value; and (2) the Variable Account Certificate
Value.
If: (1) part or all of the certificate value is surrendered; or
(2) charges described herein are made against the certificate
value; then a number of accumulation units from the variable
subaccounts and an amount from the fixed account will be deducted
to equal such amount. For surrenders, deductions will be made from
the fixed or variable subaccounts that you specify. Otherwise, the
number of units from the variable subaccounts and the amount from
the fixed account will be deducted in the same proportion that your
interest in each bears to the total certificate value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be: (1) the
sum of all amounts credited to the fixed account under this
certificate; less (2) any amounts deducted for charges or
surrenders.
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates we determine from
time to time. However, we guarantee that the rate will not be less
than the Guaranteed Interest Rate shown under Certificate Data.
Variable Account Certificate Value
The variable account certificate value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Transfers of Certificate Values
While this certificate is in force prior to the annuity start date,
transfer of certificate values may be made as outlined below:
- - - between the variable subaccounts; or
- - - from the variable subaccount(s) to the fixed account; or
- - - from the fixed account to the variable subaccount(s).
- - - The minimum transfer amount is $100, or if less, the entire
value in the account from which the transfer is being made.
Smaller minimums may apply to automated transfer procedures.
You may make a transfer by written request. Transfer requests may
also be made according to automated transfer procedures that are
then currently in effect, if any. If you make 12 transfer requests
in a certificate year we charge $25 for each additional request.
This transfer privilege may be suspended or modified by us at any
time.
<PAGE>
PAGE 15
Certificate Administrative Charge
We charge a fee for establishing and maintaining our records for
this certificate. The charge is $30 per year and is deducted from
the certificate value at the end of each certificate year prior to
the annuity start date. We currently waive this charge if total
purchase payments, less any withdrawals, equal at least $10,000.
The charge does not apply after the annuity start date. Although
we do not now intend to charge more than $30 per year, we reserve
the right to increase this annual charge to up to $50 if warranted
by the expenses we incur. We also reserve the right to assess this
charge, prior to the annuity start date against all certificate
regardless of the amount of purchase payments you have made.
Premium Tax Charges
If a premium tax is imposed by any taxing authority, we reserve the
right to deduct the amount of the tax from your purchase payments
when they are received or from the certificate value either at the
time of surrender or when you elect an annuity payment plan.
<PAGE>
PAGE 16
FIXED AND VARIABLE ACCOUNT
This section provides detailed information about the variable
account, accumulation units of the variable subaccounts and how
they are valued.
The Fixed Account
The fixed account is our general account. It is made up of all our
assets other than (1) those in the variable accounts; and (2) those
in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Certificate
Data. We have allocated a part of our assets for this and other
similar certificates and contracts to the variable subaccounts.
Such assets remain our property. However, they may not be charged
with the liabilities from any other business in which we may take
part.
Investments of the Variable Account
Purchase payments applied to the variable subaccount will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that account
under Certificate Data or as later added or changed.
We may change the portfolios from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Certificate Data. We may also add additional subaccounts investing
in other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this certificate is delivered.
Valuation of Assets
Portfolio shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payments and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this certificate. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
The amount of any Certificate Administrative Charge, or other
applicable charges or partial surrender from the Variable Account
Certificate Value will reduce the number of units credited to the
<PAGE>
PAGE 17
certificate in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the
certificate in that subaccount while a transfer into a subaccount
will increase the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable subaccount for
the last prior valuation period is multiplied by the net
investment factor for the same account for the next
following valuation period. The result is the accumulation
unit value. The value of an accumulation unit may increase
or decrease from one valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such account for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund held
in the variable subaccount determined at the end of the
current valuation period; plus
b. the per share amount of any dividend or capital gain
distribution made by the mutual fund held in the
variable subaccount, if the "ex-dividend" date occurs
during the current valuation period.
(2) is the net asset value per share of the mutual fund held in
the variable subaccount, determined at the end of the last
prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under certificates of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
<PAGE>
PAGE 18
SURRENDER PROVISIONS
This section describes how you may obtain some or all of the value
of your certificate other than through an Annuity Payment Plan.
Surrender
By written request and subject to the rules below you may:
1. surrender this certificate for the total surrender value; or
2. partially surrender this certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus any applicable premium tax.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method agreed to
by us: (a) while the certificate is in force; and (b) prior
to the earlier of the annuity start date or the death of the
annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $100 or the certificate value, if less.
3. The amount surrendered, will normally be paid to you within
seven days of the receipt of your written request and this
certificate, if required. In accordance with state laws for
surrenders from the fixed account, we have the right to
defer payment to you for up to 6 months from the date we
receive your request.
4. For partial surrenders, if you do not specify from which
accounts the surrender is to be made, the surrender will be
made from the variable subaccounts and fixed account in the
same proportion as your interest in each bears to the
certificate value.
Upon surrender for the full surrender value this certificate will
terminate. We may require that you return the certificate to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted;
or
3. When an emergency exists as a result of which: (a) disposal
of securities held in the variable subaccounts is not
<PAGE>
PAGE 19
reasonably practicable; or (b) it is not reasonably
practicable to fairly determine the value of the net assets
of the variable subaccounts; or
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of
security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
<PAGE>
PAGE 20
ANNUITY PROVISIONS
This section describes using the certificate value as a source of
guaranteed income and different ways to structure that income.
Settlement
When settlement occurs, the certificate value less any applicable
premium taxes will be applied to make annuity payments under an
Annuity Payment Plan. The first payment will be made as of the
annuity start date. This date is shown under Certificate Data
unless you have changed it. Before payments begin we will require
satisfactory proof that the annuitant is alive. We may also
require that you exchange this certificate for a supplemental
contract or certificate which provides the annuity payments.
Change of Annuity Start Date
You may change the annuity start date shown for this certificate.
Tell us the new date by written request. Any change must be
received by us at least 30 days prior to the date being changed.
However the annuity start date may not be later than the
annuitant's 85th birthday. The annuity start date you select must
be at least 30 days after we receive your written request.
Annuity Payment Plans
Subject to the terms of this certificate annuity payments will be
made on a fixed dollar basis. You can schedule receipt of annuity
payments according to one of the Plans A through E below or another
plan agreed to by us.
Plan A - This provides monthly annuity payments during the
lifetime of the annuitant. No payments will be made after
the annuitant dies.
Plan B - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that
payments will be made for a period of at least five, ten or
fifteen years. You must select the guaranteed period.
Plan C - This provides monthly annuity payments during the
lifetime of the annuitant with a guarantee by us that
payments will be made for a certain number of months. We
determine the number of months by dividing the amount
applied under this plan by the amount of the first monthly
annuity payment.
Plan D - Monthly payments will be paid during the lifetime
of the annuitant and a joint annuitant. When either the
annuitant or the joint annuitant dies we will continue to
make monthly payments during the lifetime of the survivor.
No payments will be paid after the death of both the
annuitant and joint annuitant.
Plan E - (Installments for a specified period) This provides
monthly annuity payments for a period of years. The period
of years may be no less than 10 nor more than 30.
<PAGE>
PAGE 21
By written request to us at least 3- days before the Annuity Start
Date, you may select the Plan. If at least 30 days before the
Annuity Start Date we have not received your written request to
select a Plan, we will make payments according to Plan B with
payments guaranteed for ten years.
If you select a Plan that has a payment amount that is the same as
another Plan having a longer guarantee period, then the Plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide a monthly
payment of at least $20, we have the right to make a lump sum
payment of the certificate value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the certificate value will be applied to the applicable
Annuity Table. This will be done in accordance with the Payment
Plan chosen. The amount payable for each $1,000 so applied is
shown in Table of Settlement Rates on Page 13.
<PAGE>
PAGE 22
TABLE OF SETTLEMENT RATES
Rates used for various Annuity Payment Plans.
The amount of the first and all subsequent monthly fixed dollar
annuity payments for each $1,000 of value applied under any payment
plan will be based on our fixed dollar Table of Settlement Rates in
effect on the annuity start date. Such rates are guaranteed to be
not less than those shown in the table below. In addition, the
amount of such fixed annuity payments will not be less than that
which would be provided if a single premium immediate annuity
certificate then offered by us to annuitants in the same class were
to be purchased with the greater of: 1. the cash surrender value
of the certificate; or 2. 95% of the accumulation value of the
certificate. The amount of such annuity payments under Plans A, B,
and C will depend upon the sex and adjusted age of the annuitant on
the annuity start date. The amount of such annuity payments under
Plan D will depend upon the sex and the adjusted age of the
annuitant and joint annuitant on the annuity start date. Adjusted
age shall be equal to the age nearest birthday minus an
"adjustment" depending on the calendar year of birth of the
annuitant as follows:
Calendar Calendar
Year of Year of
Annuitant's Annuitant's
Birth Adjustment Birth Adjustment
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
<PAGE>
PAGE 23
<TABLE>
<CAPTION>
Dollar Amount of Each Monthly Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Adjusted Age of Female Joint Annuitant
Life 5 Years 10 Years 15 Years With Adj.
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.66 3.42 3.65 3.42 3.64 3.42 3.63 3.41 3.57 3.38 40 3.05 3.14 3.23 3.32 3.40
45 3.93 3.63 3.92 3.63 3.90 3.63 3.87 3.61 3.80 3.57 45 3.17 3.28 3.39 3.50 3.61
50 4.27 3.90 4.26 3.90 4.22 3.89 4.17 3.86 4.08 3.80 50 3.32 3.46 3.60 3.75 3.88
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
70 7.23 6.25 7.07 6.18 6.36 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 6.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
80 11.06 9.53 10.17 9.07 8.33 7.89 6.66 6.55 8.32 7.64 80 5.90 6.78 7.77 8.76 9.57
85 14.16 12.48 12.12 11.19 8.97 8.74 6.81 6.77 9.85 9.18 85 7.07 8.36 9.78 11.11 12.13
* Adjusted age of annuitant. M=Male F=Female
The table above is based on the "1983 Individual Annuitant Mortality Table A." assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the table below are based on
assuming a 3% annual effective rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $9.61 17 $6.23 24 $4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 24
GROUP DEFERRED ANNUITY CERTIFICATE
- - - Flexible purchase payments.
- - - Optional fixed dollar or variable accumulation values.
- - - Fixed dollar annuity payments to begin on the annuity start date.
- - - This certificate is nonparticipating.
American Centurion Life Insurance Company
P.O. Box 5550
Albany, NY 12205-0550
<PAGE>
PAGE 1
American Centurion P.O. Box 5555
Life Assurance Company Albany, New York 12205-0555
An American Express Company
GROUP DEFERRED ANNUITY CONTRACT
- - - Flexible purchase payment
- - - Optional fixed dollar or variable accumulation values
- - - Fixed dollar annuity payments
- - - Annuity payments to begin on the Annuity Start Date.
- - - This contract is nonparticipating. Dividends are not payable.
Contractholder: American Express Company
Contract Number: 555555555-5
Contract Date: October 31, 1995
American Centurion Life Assurance Company, herein called the
company, will pay the benefits provided by this contract in
accordance with and subject to all provisions of this contract.
We issue this contract in consideration of the application of the
contractholder.
Signed for and issued by American Centurion Life Assurance Company,
Albany, NY, as of the contract date shown above.
ACCUMULATION VALUES, WHEN BASED ON THE INVESTMENT RESULTS OF THE
SEPARATE ACCOUNT, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT.
NOTICE OF CONTRACTHOLDER'S RIGHT TO EXAMINE THIS CONTRACT FOR 10
DAYS If for any reason the contractholder is not satisfied with
this contract, the contractholder may cancel it by returning it to
us or our agent within 20 days after receiving it. We will then
cancel the contract. We will refund all payments made. The
contract will be considered void from its start.
NOTICE OF CERTIFICATE OWNERS' RIGHT TO EXAMINE CERTIFICATES ISSUED
UNDER THIS CONTRACT FOR 10 DAYS
If for any reason an owner is not satisfied with a certificate
issued under this contract, the owner may cancel it by returning it
to us or our agent within 10 days after receiving the certificate.
We will then cancel the certificate. We will refund the greater
of: (1) purchase payments without investment earnings, less any
amounts surrendered; or (2) the certificate value plus any premium
tax charges paid.
President
Secretary
38501
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions
Important words and meanings/Page 3
General Provisions
Entire contract; Contract modification; Incontestability; Benefits
based upon incorrect data; State Laws; Federal Laws; Reports to
owner; Evidence of survival; Protection of proceeds; Payments by
us; Voting rights/Page 5
Group contractholder; Owner and Beneficiary
Group contractholder; Owner rights; Change of ownership;
Beneficiary; change of Beneficiary; Assignment/Page 7
Payments to Beneficiary
Describes options and amounts payable upon death/Page 8
Purchase Payments
Certificate purchase payments amounts; Payment limits; Allocations
of purchase payments/Page 9
Certificate Value
Describes the fixed and variable certificate values; Interest to be
credited; Certificate administrative charge; Premium taxes;
Transfers of certificate values/Page 11
Fixed and Variable Accounts
Describes the fixed account; Describes the variable subaccounts,
accumulation units and values; Net investment factor; Mortality and
expense risk charge/Page 13
Surrender Provisions
Surrender of the certificate for the cash surrender value; Rules
for surrender; TSA distribution restrictions; Premature
distribution penalty tax; Tax-qualified minimum distribution
requirements/Page 15
Annuity Provisions
When annuity payments begin; Different ways to receive annuity
payments; Determination of payment amounts/Page 17
Tables of Settlement Rate
Tables showing guaranteed fixed dollar annuity payments for the
various payment plans/Page 19
<PAGE>
PAGE 3
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person on whose life monthly annuity payments depend.
owner
The owner of a certificate. The owner may be someone other than
the annuitant. The owner is shown in the enrollment application
unless the owner has been changed as provided in this contract.
we, us, our
American centurion Life Assurance Company.
accumulation unit
An accumulation unit is an accounting unit. It is used to
calculate the certificate value prior to settlement.
certificate date
It is the date from which certificate anniversaries, certificate
years, and certificate months are determined. The certificate date
is shown under Certificate Data, in the certificate.
certificate anniversary
The same day the month as the certificate date each year that the
certificate remains in force.
certificate value
The sum of the: (1) Fixed Account Certificate Value; and the (2)
Variable Account Certificate Value.
annuity start date
The date shown under Certificate Data, in the certificate, on which
annuity payments are to begin. This date may be changed as
provided in this contract.
settlement
The application of the accumulation value of a certificate to
provide fixed dollar annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
<PAGE>
PAGE 4
variable account
The variable account is a separate investment account of ours. It
consists of several subaccounts. Each subaccount is named under
Certificate Data, in the certificate.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
written request
A request in writing signed by the owner and delivered to us at our
home office.
Code
The Internal Revenue Code of 1986, as amended, and all related laws
and regulations which are in effect during the term of this
contract.
tax-qualified certificate
A certificate used in or under a retirement plan or program that is
intended to qualify under Section 408 of the Code. These include,
IRA certificates and SEP/IRA certificates defined below.
IRA certificate
A certificate used in or under a retirement plan or program that is
intended to qualify under Section 408(b) of the Code. An IRA
certificate is a tax-qualified certificate as defined above.
SEP/IRA certificate
A Simplified Employee Pension (SEP/IRA) certificate. It is used in
or under a retirement plan or program that is intended to qualify
under Section 408(k) of the Code. A SEP/IRA is an IRA with special
features and requirements. A SEP/IRA certificate is a tax-
qualified certificate as defined above.
non-qualified certificate
A certificate used mainly for retirement purposes under a plan or
program that is not intended to qualify under Section 401, 403 or
408 of the Code.
<PAGE>
PAGE 5
GENERAL PROVISIONS
Entire Contract
The entire contract consists of: this group contract; the
application of the group contractholder, which is attached to the
group contract; and the enrollment applications.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Contract Modification
We will modify this contract if needed to:
1. qualify certificates issued under this contract as annuity
certificates under Section 72 of the Code and all related
laws and regulations which are in effect during the term of
this contract; and
2. if certificates issued under this contract are purchased as
tax-qualified certificates; to qualify such certificates as
tax-qualified certificates under Section 408 of the Code and
all related laws and regulations which are in effect during
the term of this contract.
We will obtain the approval of the State of New York and any other
regulatory authority for the modification. We will provide the
contractholder and the existing certificate owners with notices and
copy of any such modifications, approved for use in the state of
jurisdiction, and an explanation of their effect upon the contract.
An existing certificate owner may reject the modifications by
writing to us.
Incontestable
Certificates issued under this contract are incontestable from
their issue dates.
Are the certificates on a sex distinct or unisex basis?
Nonqualified and IRA certificates are on a sex distinct basis.
SEP/IRA certificates are on a unisex basis.
Benefits Based on Incorrect Data
For SEP/IRA certificates: If the amount of benefits is determined
by data as to a person's age that is incorrect, benefits will be
recalculated on the basis of the correct data. Any underpayments
made by us will immediately be paid in a single sum with an
interest credit of 6% per annum. Any overpayments made by us will
be subtracted from the future payments together with an interest
credit of 6% per annum.
For non-qualified certificates and IRA certificates: If the amount
of benefits is determined by data as to a person's age or sex that
is incorrect, benefits will be recalculated on the basis of the
correct data. Any underpayments made by us will immediately be
<PAGE>
PAGE 6
paid in a single sum with an interest credit of 6% per annum. Any
overpayments made by us will be subtracted from the future payments
together with an interest credit of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered to the contractholder. The values and benefits of the
certificates are at least equal to those required by such state and
by the state in which the certificate is delivered to the
certificate owner. Any paid up annuity, cash surrender or death
benefit is not less than the minimum benefit required by any
statute of the state in which the contract is delivered and by any
statute of the state in which the certificate is delivered to the
certificate owner.
Federal Laws
This contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract and certificate are to be interpreted to ensure or
maintain such tax qualification, despite any other provisions to
the contrary. We reserve the right to amend the contract and
certificate to reflect any clarifications that may be needed or is
appropriate to maintain such qualification or to conform the
contract any applicable changes in the tax qualification
requirements.
We will obtain the approval of the State of New York and any other
regulatory authority for the modifications. We will provide you
with notice and copy of any such modifications, approved for use in
the state of jurisdiction, and an explanation of their effect upon
your contract or certificate. You may reject the modifications by
writing to us.
Reports to Owner
At least once a year we will send you a statement showing the
certificate value and the certificate cash surrender value. The
statement will be based on the laws and regulation of the state in
which the certificate is delivered to the certificate owner and of
any other applicable laws or regulations that apply to certificates
of this type.
Evidence of Survival
Where any payments under a certificate depend upon the recipient or
annuitant being alive on a certain date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making payments.
Protection of Proceeds
Payments under any certificate are not assignable by any
beneficiary prior to the time they are due. To the extent allowed
by law, payments are not subject to the claims of creditors or
legal process.
Payment By Us
All sums payable by us are payable at our home office. Any payment
of a variable annuity or surrender based on the variable
certificate value shall be payable only from the variable accounts.
<PAGE>
PAGE 7
Voting Rights
So long as federal law requires, the owner may have the right to
vote at meetings of the Variable Shareholders. If the owners have
voting rights we will send a notice to them telling the time and
place of a meeting. The notice will also explain matters to be
voted upon and how many votes the owner gets.
<PAGE>
PAGE 8
CONTRACTHOLDER, OWNER AND BENEFICIARY
Group Contractholder
The group contractholder is shown on the cover page of this
contract. The contract provides for a successor contractholder.
In the event the contractholder should merge with another
corporation, the new corporation would be the group contractholder.
Certificate Owner Rights
As long as the annuitant is living and unless otherwise provided in
this contract, the owner will have the sole and absolute power to
exercise all rights and privileges provided in the certificate or
allowed by us.
For IRA and SEP/IRA certificates, the annuitant is the owner. The
owner has the sole and absolute power to receive and enjoy all
rights under the certificate. The owner's entire interest is non-
forfeitable.
Change of Ownership
For tax-qualified certificates, the right to change the ownership
is restricted. The certificate may not be: sold; assigned;
transferred; discounted or pledged as collateral for a loan or as
security for the performance of an obligation; or for any other
purpose to any person other than as may be required or permitted
under Section 408 of the Code, or under any other applicable
section of the Code.
Also, interests in IRA and SEP/IRA certificates may be transferred
to the owner's former spouse, if any, under a divorce decree or a
written instrument incidental to such divorce.
For non-qualified certificates, the owner may change the ownership.
Any change of ownership as provided above must be made by written
request on a form approved by us. The change must be made while
the annuitant is living. Once the change is received by us, it
will take effect as of the date of the request, subject to any
action taken or payment made by us before the receipt.
Beneficiary
Beneficiaries are those the owner has named in the enrollment
application or later changed as provided below, to receive benefits
of the certificate if the owner or the annuitant die while the
certificate is in force.
Only those beneficiaries who are living when death benefits become
payable may share in the benefits, if any. If no beneficiary is
then living, we will pay the benefits to the owner, if living,
otherwise to the owner's estate.
Change of Beneficiary
The owner may change the beneficiary anytime while the annuitant is
living. This must be done by satisfactory written request to us.
Once the change is received by us, it will take effect as of the
date of the owner's request, subject to any action taken or payment
made by us before the receipt.
<PAGE>
PAGE 9
Assignment
Tax-qualified certificates may not be assigned as collateral.
The owner may assign non-qualified certificates or any interest in
them. The annuitant must be loving. The owner's interest and the
interest of any beneficiary is subject to the interest of the
assignee. An assignment is not a change of ownership and an
assignee is not an owner as these terms are used in this contract.
Any amounts payable to the assignee will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was recorded at our home office.
We are not responsible for the validity of any assignment.
<PAGE>
PAGE 10
PAYMENTS TO BENEFICIARY
Death Benefits Before the Annuity Start Date
If the owner or annuitant dies before the annuity start date while
the certificate is in force we will pay the beneficiary the greater
of the certificate value or the purchase payments paid less any
amounts surrendered.
The above amount will be paid in a lump sum upon the receipt of due
proof of death of the owner or annuitant, whichever first occurs.
The beneficiary may elect to receive payment anytime within 5 years
after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. The beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. The plan provides payments over a period which does not
exceed the life or life expectancy of the beneficiary; and
3. For non-qualified certificates:
Payments begin no later than one year after the date of
death; and
4. For tax-qualified certificates:
(a) Payments begin no later than one year after the date of
death, in the case of a non-spouse beneficiary; or
(b) Payments begin no later than the date on which the
annuitant would have attained age 70 1/2 or one year after
the date of death, in the case of a spousal beneficiary; and
(c) Amounts are calculated in accordance with the Code.
In this event, the reference to "annuitant" in the Annuity Payment
Plans section shall apply to the beneficiary.
Required Distribution at Annuitant's Death Prior to the Annuity
Start Date.
The Code requires a distribution on the death of the annuitant if a
certificate is owned by a corporation or other non-individual. If
we receive due proof that the annuitant died while a certificate
was in force before settlement, we will pay to the beneficiary the
death benefit described in Death Benefits Before the Annuity Start
Date. The death benefit will be determined as of the date on which
due proof of death is received at our home office.
Refer to the other provisions of the Payments to Beneficiary
section. They explain the distribution methods and timing the
beneficiary may elect. A spouse beneficiary, if eligible as
explained in the provision below, may elect spousal continuation.
Spouse's Option to Continue Certificate
For non-qualified certificates: If the owner dies prior to the
annuity start date, and the owner's spouse is the sole beneficiary
of the certificate, the spouse may forego receipt of the death
benefit and instead keep the certificate in force as its owner and
annuitant. The election by the spouse must be made within 60 days
after we receive due proof of death. Additional purchase payments
may be made to the annuity.
<PAGE>
PAGE 11
For IRA and SEP/IRA certificates: If the owner dies prior to the
annuity start date, and the owner's spouse is the sole beneficiary
of the certificate, the spouse may forego receipt of the death
benefit and instead keep the certificate in force as its owner and
annuitant. The election by the spouse must be made within 60 days
after we receive due proof of death. Additional purchase payments
may be made to the IRA annuity. The spouse may defer beginning
annuity payments until the spouse attains age 70 1/2 or such other
date as provided in the Code. Any annuity payment plan later
elected must provide for amounts calculated in accordance with the
Code. The applicable IRA or SEP/IRA limitations of the original
certificate will continue to apply to the certificate with the
spousal owner and annuitant.
Death After the Annuity Start Date
If annuity payments are being made under Plans B, C or E (see
Annuity Payment Plans), any remaining guaranteed payments will be
continued to the beneficiary, if living; if not, the owner if
living; if not, the owner's estate.
<PAGE>
PAGE 12
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments an owner makes for a certificate
and the benefits it provides. Purchase payments for a certificate
consist of the initial purchase payment and any additional optional
purchase payments the owner makes. Purchase payments must be paid
or mailed to us at our home office or to an authorized agent. If
requested, we will give the owner a receipt for the purchase
payments. Upon payment to us, purchase payments become our
property.
Net purchase payments are that part of the owner's purchase payment
applied to the certificate value. A net purchase payment is equal
to the purchase payment less any applicable premium tax charge.
Amounts and Intervals
Additional purchase payments may be made to a certificate until the
earlier of:
1. the date the certificate terminated by surrender or
otherwise; or
2. the date on which annuity payments begin for a certificate.
Subject to the Payment Limits Provision below, the owner may:
1. stop and/or restart purchase payments; or
2. increase or decrease the amount of purchase payments; or
3. change the interval of purchase payments.
Payment Limits Provision
Minimum Purchase Payments - The minimum initial purchase payment
for certificates is $2,000 (for non-qualified) or $1,000 (for IRA,
SEP/IRA unless the certificateholder agrees to establish a bank
authorization for at least $100 per month which on an annualized
basis, equals $1,200.
Maximum Purchase Payments - The maximum total purchase payments for
a certificate in the first certificate year is $1,000,000 for ages
up to Age 75 or $500,000 for ages 76-85. The Maximum purchase
payment in the second or later certificate years is $50,000 per
year.
Additional Purchase Payments - The owner may make additional
purchase payments of at least $100 per month.
IRA certificate purchase payments must be:
- - - Active IRA contributions. Active IRA contributions are
described in Code Sections 408(b)(2) and 219 and generally
may not exceed $2,000 for any taxable year except for the
permissible $2,250 contribution of an individual with a non-
working spouse; or
- - - Rollover or transfer IRA contributions of accumulated past
active IRA contributions. Rollover IRA contributions are
described in Code Section 408(d)(3); or
<PAGE>
PAGE 13
- - - Rollover IRA contributions of distributions from the owner's
employer's tax-qualified retirement plan. Employer
retirement plan rollovers are described in Code Sections
402(a)(5), 402(a)(7), 403(a)(4) or 403(b)(8).
SEP/IRA certificate purchase payments must be:
- - - Current SEP/IRA contributions. SEP/IRA contributions are
described in Code Sections 408(k) and 219. SEP/IRA
contributions must be made by an employer form employer
monies. Generally employer SEP/IRA contributions for any
taxable year may not exceed the lesser of 15% of the owner's
compensation or $30,000 (as indexed); or
- - - Rollover or transfer SEP/IRA contributions of accumulated
past SEP/IRA contributions. Rollover contributions are
described in Code Section 408(d)(3).
All purchase payments must be made in cash. If the owner dies
before the entire interest in the certificate has been distributed,
and the beneficiary is other than a surviving spouse, no additional
purchase payments will be accepted from the beneficiary for the
certificate.
We also reserve the right to cancel a certificate if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $1,000 in purchase payments have been paid under the
certificate. In this event we will give the owner 30 days written
notice of our intent to cancel the certificate. Upon such
cancellation we will pay the owner the certificate value in one
sum. The certificate will then terminate.
Allocation of Purchase Payments
The owner may allocate the purchase payments to the fixed account
and among one or more of the variable subaccounts. The choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%.
The entire portion of any net purchase payment that the owner
allocates to the Variable Subaccounts will be invested in the
Moneyshare subaccount until the estimated end of the Right to
Examine the Certificate period. The certificate value in the
Moneyshare subaccount will then be transferred to the subaccounts
elected on the enrollment application.
The entire portion of any net purchase payment allocated to the
Fixed Account will be invested in the Fixed Account when received.
Additional net purchase payments received after the Right to
Examine the Contract period will be allocated to the Fixed Account
and the Variable Subaccounts as elected on the application unless
the owner elects a different allocation. By written request, or by
another method agreed to by us, the owner may change purchase
payment allocations.
<PAGE>
PAGE 14
The first net purchase payment will be allocated as of the end of
the valuation period during which we made an affirmative decision
to issue the certificate. Net purchase payments after the first
will be allocated as of the end of the valuation period during
which we receive the payment at our home office.
<PAGE>
PAGE 15
CERTIFICATE VALUE
Certificate Value
The certificate value at any time is the sum of:
1. the Fixed Account Certificate Value; and
2. the Variable Account Certificate Value.
If:
1. part or all of the certificate value is surrendered; or
2. charges described herein are made against the certificate value;
then a number of accumulation units from the variable subaccounts
and an amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed
account or variable subaccounts that the owner specifies.
Otherwise, the number of units from the variable subaccounts and
the amount from the fixed account will be deducted in the same
proportion and the owner's interest in each bears to the total
certificate value.
Fixed Account Certificate Value
The fixed account certificate value at any time will be:
1. the sum of all amounts credited to the fixed account under
the certificate; less
2. any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account certificate value.
Interest will begin to accrue on the date the purchase payments are
received in our home office. Such interest will be credited at
rates we determine from time to time. However, we guarantee that
the rate will not be less than a 3% annual effective rate.
Variable Account Certificate Value
The variable account certificate value at any time will be:
1. the sum of the value of all variable subaccount accumulation
units under this contract resulting from purchase payments
so allocated, or transfers among the variable and fixed
accounts; less
2. any units deducted for charges or surrenders.
Certificate Administrative Charge
We charge a fee for establishing and maintaining our records for
certificates. The charge is $30 per certificate per year and is
deducted from the certificate value at the end of each certificate
year prior to the annuity start date. The charge deducted will be
prorated among the variable subaccounts and the fixed account in
the same proportion the owner's interest in each bears to the total
certificate value.
We currently waive this charge if total purchase payments, less any
withdrawals, equal at least $10,000. The charge does not apply
after the annuity start date. Although we do not now intend to
charge more than $30 per year, we reserve the right to increase
<PAGE>
PAGE 16
this annual charge to up to $50 if warranted by the expenses we
incur. We also reserve the right to assess this charge, prior to
the annuity start date against all certificates regardless of the
amount of purchase payments made.
Premium Tax Charges
A charge will be made by us against the certificate value of a
certificate for any applicable premium taxes not previously
deducted.
Transfers of Certificate Value
Owners may make transfers of certificate values while certificates
are in force prior to the annuity start date as outlined below:
- - - between the variable subaccounts; or
- - - from the variable subaccount(s) to the fixed account; or
- - - from the fixed account to the variable subaccount(s).
- - - The minimum transfer amount is $100, or if less, the entire
value in the account from which the transfer is being made.
Smaller minimums may apply to automated transfer procedures.
The owner may make a transfer by written request. Transfer
requests may also be made according to automated transfer
procedures that are then currently in effect, if any. If an owner
makes 12 transfer requests in a certificate year we charge $25 for
each additional request. This transfer privilege may be suspended
or modified by us at any time.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all our
assets other than
1. those in the variable accounts; and
2. those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts. We have allocated a part of our
assets for this and certain other contracts to the variable
account. Such assets remain our property. However, they may not
be charged with the liabilities from any other business in which we
may take part.
Investments of the Variable Account
Certificate purchase payments applied to the variable account will
be allocated as specified by the owner. Each variable subaccount
will buy, at net asset value, shares of the Portfolio shown for
that account under Certificate Data, in the certificate, or as
later added or changed.
We may change the portfolios from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Certificate Data. We may also add additional subaccounts investing
in other portfolios.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
the certificate is delivered.
Valuation of Assets
Portfolio shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The number of accumulation units for each of the variable
subaccounts in a certificate is found by dividing
1. the net amount allocated to the certificate subaccount; by
2. the accumulation unit value for the subaccount for the
valuation period during which we received the certificate
purchase payment.
and subtracting the number of certificate accumulation units
resulting from:
1. transfer from the certificate subaccount; and
2. surrenders from the certificate subaccount; and
3. certificate administrative charge deductions from the
certificate subaccount.
<PAGE>
PAGE 18
The number of accumulation units added or subtracted for each of
the above transactions is found by dividing:
1. the number allocated to or deducted from the certificate's
subaccount; by
2. the accumulation unit value for the certificate's subaccount
for the respective valuation period during which we received
the purchase payment or transfer value, or during which we
deducted transfers, surrenders, surrender charges or
certificate administrative charges.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was set at $1 when the first Portfolio shares were
bought. The value for any later valuation period is found as
follows:
The accumulation unit value for each variable subaccount for
the last prior valuation period is multiplied by the net
investment factor for the same subaccount for the next
following valuation period. The result is the accumulation
unit value. The value of an accumulation unit may increase
or decrease from one valuation period to the next.
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
1. is the sum of:
(a) the net asset value per share of the Portfolio held
in the variable subaccount determined at the end of the
current valuation period; plus
(b) the per share amount of any dividend or capital gain
distribution made by the Portfolio held in the
variable subaccount, if the "ex-dividend" date occurs
during the current valuation period.
2. is the net asset value per share of the Portfolio held in
the variable subaccount, determined at the end of the last
prior valuation period.
3. is a factor representing the mortality and expense risk
charge.
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.00% of the daily net asset value. This
<PAGE>
PAGE 19
deduction is made to compensate us for assuming the mortality and
expense risks under certificates of this type. The deduction will
be:
1. made from each variable subaccount; and
2. computed on a daily basis.
<PAGE>
PAGE 20
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below the owner may:
1. surrender the certificate for the total surrender value; or
2. partially surrender the certificate for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the certificate value;
2. minus any applicable premium tax
Rules For Surrender
All surrenders will have the following conditions:
1. The owner must apply by written request or other method
agreed to by us:
(a) while the certificate is in force; and
(b) prior to the earlier of the annuity start date or the
death of the annuitant.
2. The owner must surrender an amount equal to at least $100.
Each variable subaccount value and the fixed account value
after a partial surrender must be either $0 or at least
$100.
3. The amount surrendered will normally be paid to you within
seven days of the receipt of your written request and the
certificate, if required. For surrenders from the fixed
account, we have the right to defer payment for up to 6
months from the date we receive the surrender request.
4. For partial surrenders, if the owner does not specify from
which account the surrender is to be made, the surrender
will be made from the variable subaccounts and fixed account
in the same proportion as the owner's interest in each bears
to the certificate value.
Upon surrender for the full surrender value the certificate will
terminate. We may require that the owner return the certificate to
us before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is restricted;
or
3. When an emergency exists as a result of which:
(a) disposal of securities held in the variable subaccounts
is not reasonably practical; or
(b) it is not reasonably practical to fairly determine the
value of the net assets of the variable subaccounts; or
<PAGE>
PAGE 21
4. During any other period when the Securities and Exchange
Commission, by order, so permits for the protection of
security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
<PAGE>
PAGE 22
MINIMUM CERTIFICATE ACCUMULATION VALUES AND CASH SURRENDER VALUES
PRIOR TO SETTLEMENT PER $1,000 OF INITIAL PAYMENT*
End of Minimum Minimum
Certificate Accumulation Surrender
Year Values Values
1 1,189.41 1,189.41
2 2,414.51 2,414.51
3 3,676.35 3,676.35
4 4,976.06 4,976.06
5 6,314.75 6,314.75
6 7,693.60 7,693.60
7 9,113.82 9,113.82
8 10,606.65 10,606.65
9 12,144.26 12,144.26
10 13,728.00 13,728.00
11 15,359.25 15,359.25
12 17,039.44 17,039.44
13 18,770.04 18,770.04
14 20,552.55 20,552.55
15 22,388.54 22,388.54
16 24,279.61 24,279.61
17 26,227.41 26,227.41
18 28,233.64 28,233.64
19 30,300.06 30,300.06
20 32,428.48 32,428.48
*Based on the minimum 3% annual effective rate, compounded
annually. Assumptions:
1. There is a $10,000 initial purchase payment received and
allocated 100% to the fixed account; and
2. There are no additional payments; and
3. There are no premium tax charges; and
4. There are no surrenders.
If purchase payments are otherwise paid or allocated, or if there
are surrenders, or premium tax charges, the values above will be
changed in accordance with the provisions of the Group Contract.
<PAGE>
PAGE 23
ANNUITY PROVISIONS
Settlement
When certificate settlement occurs, the certificate value less any
applicable premium taxes will be applied to make fixed dollar
annuity payments. The first payment will be made as of the annuity
start date. This date is shown under Certificate Data, in the
certificate. Before payments begin we will require satisfactory
proof that the annuitant is alive. We may also require that the
owner exchange the certificate for a supplemental contract or
certificate which provides the annuity payments.
Change of Annuity Start Date
The owner may change the annuity start date shown in Certificate
Data for the certificate. The owner must tell us the new date by
written request. If the owner selects a new date, it must be at
least 30 days after we receive the written request at our home
office.
The annuity start date on tax-qualified certificates cannot be
later than the later of:
1. the April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which allows satisfaction of the minimum
distribution requirements under the Code, its regulations
and/or promulgations by the Internal Revenue Service; or
3. such other date which allows satisfaction of the tax
qualified plan's requirements.
Notwithstanding the above, and for all non-qualified certificates,
the annuity start date may not be later than the annuitant's 85th
birthday.
Annuity Payment Plans
Annuity payments are made on a fixed dollar basis. The owner may
schedule receipt of annuity payments according to one of the Plans
A through E below or another plan agreed to by us.
For an IRA or tax-qualified certificate, any such plan will be
calculated in accordance with the Code and must be provided:
(a) in equal or substantially equal payments over a period no
longer than the life of the annuitant or over the life of
the annuitant and a joint annuitant; or
(b) in equal or substantially equal payments over a period which
does not exceed the life expectancy or the annuitant and a
joint annuitant; or
(c) any plan selected must also meet the incidental death
benefit requirements, if any, under the Code.
Plan A - This provides monthly annuity payments during the lifetime
of the annuitant. No payments will be made after the annuitant
dies.
<PAGE>
PAGE 24
Plan B - This provides monthly annuity payments during the lifetime
of the annuitant with a guarantee by us that payments will be made
far a period of at least five, ten or fifteen years. The owner
must select the guaranteed period.
Plan C - This provides monthly annuity payments during the lifetime
of the annuitant with a guarantee by us that payments will be made
for a certain number of months. We determine the number of months
by dividing the amount applied under this plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the lifetime of the
annuitant and a joint annuitant. When either the annuitant or the
joint annuitant dies we will continue to make monthly payments
during the lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint annuitant.
Plan E - This provides monthly annuity payments for a period of
years. The period of years may be no less than 10 nor more than
30.
Plan Selection Requirements
The owner may select the plan by written request to us at least 30
days before the annuity start date.
If at least 30 days before the annuity start date we have not
received at our home office the owner's written request to select a
plan, we will make fixed dollar payments according to Plan B with
payments guaranteed for ten years.
If the owner selects a plan that has a payment amount that is the
same as another plan having a longer guarantee period, then the
plan with the longer guarantee period will be deemed to have been
chosen.
If the amount to be applied to a plan would not provide a monthly
payment of at least $50, we have the right to change the frequency
of the payment or to make a lump sum payment of the certificate
value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement the fixed account certificate value will be applied to
our fixed dollar Table of settlement Rates then in effect.
This will be done in accordance with the payment plan chosen. The
minimum amount payable for each $1,000 so applied is shown in sex
distinct Table A (non-qualified and IRA certificates) and unisex
Table B (SEP/IRA certificates) on pages 20 and 21.
<PAGE>
PAGE 25
TABLE OF SETTLEMENT RATES
The amount of the first and all subsequent monthly fixed dollar
annuity payments for each $1,000 of value applied under any payment
plan will be based on our fixed dollar Table of Settlement Rates in
effect on the annuity start date. Such rates are guaranteed to be
not less than those shown in sex distinct Table A (non-qualified
and IRA certificates) on page 20 and unisex Table B (SEP/IRA
certificate) on page 21.
In addition, the amount of such fixed annuity payment will not be
less than that which would be provided if a single premium
immediate annuity contract then offered by us to annuitants in the
same class were to be purchased with the greater of:
1. the cash surrender value of the certificate; or
2. 95% of the accumulation value of the certificate.
For non-qualified and IRA certificates, the amount of such fixed
annuity payments under Plans A, B, and C will depend upon the sex
and the adjusted age of the annuitant on the date of settlement.
The amount of such annuity payments under Plan D will depend upon
the sex and adjusted age of the annuitant and the join annuitant on
the date of settlement.
For SEP/IRA certificates, the amount of such fixed annuity payments
under Plans A, B and C will depend upon the adjusted age of the
annuitant on the date of settlement. The amount of such annuity
payments under Plan D will depend on the adjusted age of the
annuitant and the joint annuitant on the date of settlement.
Adjusted age shall be equal to the age nearest birthday minus an
"adjustment" depending on the calendar year of birth of the
annuitant as follows:
Calendar Year of Annuitant's Birth Adjustment
Prior to 1920 0
1920 through 1924 1
1925 through 1929 2
1930 through 1934 3
1935 through 1939 4
1940 through 1944 5
1945 through 1949 6
1950 through 1959 7
1960 through 1969 8
1970 through 1979 9
1980 through 1989 10
After 1989 11
<PAGE>
PAGE 26
<TABLE>
<CAPTION>
TABLE A
TABLE OF FIXED DOLLAR SETTLEMENT RATES
NON-QUALIFIED AND IRA CERTIFICATES
Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Life 5 Years 10 Years 15 Years With Adj. Adjusted Age of Female Joint Annuitant
Adj. Income Certain Certain Certain Refund Male 10 Years 5 Years Same 5 Years 10 years
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.66 3.42 3.65 3.42 3.64 3.42 3.63 3.41 3.57 3.38 40 3.05 3.14 3.23 3.32 3.40
45 3.93 3.63 3.92 3.63 3.90 3.63 3.87 3.61 3.80 3.57 45 3.17 3.28 3.39 3.50 3.61
50 4.27 3.90 4.26 3.90 4.22 3.89 4.17 3.86 4.08 3.80 50 3.32 3.46 3.60 3.75 3.88
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
70 7.23 6.25 7.07 6.18 6.36 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 6.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
80 11.06 9.53 10.17 9.07 8.33 7.89 6.66 6.55 8.32 7.64 80 5.90 6.78 7.77 8.76 9.57
85 14.16 12.48 12.12 11.19 8.97 8.74 6.81 6.77 9.85 9.18 85 7.07 8.36 9.78 11.11 12.13
* Adjusted age of annuitant. M=Male F=Female
The table above is based on the "1983 Individual Annuitant Mortality Table A." assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the table below are based on
assuming a 3% annual effective rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $9.61 17 $6.23 24 $4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 27
<TABLE>
<CAPTION>
TABLE B
TABLE OF FIXED DOLLAR SETTLEMENT RATES (Unisex)
SEP/IRA CERTIFICATES (excludes IRA certificates)
Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D - Joint and Survivor
Life 5 Years 10 Years 15 Years With Adjusted Age of Joint Annuitant
Adj. Income Certain Certain Certain Refund Adj. 10 Years 5 Years Same 5 Years 10 years
Age* Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
40 3.42 3.42 3.42 3.41 3.38 40 3.03 3.10 3.17 3.24 3.29
45 3.63 3.63 3.63 3.61 3.57 45 3.15 3.24 3.33 3.41 3.47
50 3.90 3.90 3.89 3.86 3.80 50 3.29 3.41 3.52 3.62 3.71
55 4.25 4.25 4.22 4.18 4.10 55 3.47 3.62 3.77 3.90 4.01
60 4.72 4.70 4.66 4.57 4.48 60 3.71 3.90 4.10 4.28 4.42
65 5.35 5.32 5.22 5.05 4.97 65 4.01 4.28 4.54 4.79 4.99
70 6.25 6.18 5.96 5.60 5.61 70 4.42 4.79 5.16 5.51 5.79
75 7.56 7.39 6.89 6.14 6.48 75 4.99 5.51 6.06 6.56 6.96
80 9.53 9.07 7.89 6.55 7.64 80 5.79 6.56 7.38 8.11 8.67
85 12.48 11.19 8.74 6.77 9.18 85 6.96 8.11 9.32 10.38 11.14
* Adjusted age of annuitant.
The table above is based on the "1983 Individual Annuitant Mortality Table A." assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as those
rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the table below are based on
assuming a 3% annual effective rate.
</TABLE>
<TABLE>
<CAPTION>
PLAN E Dollar Amount of Each Monthly Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $9.61 17 $6.23 24 $4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE>
<PAGE>
PAGE 28
GROUP DEFERRED ANNUITY CONTRACT
- - - Flexible purchase payments.
- - - Optional fixed dollar or variable accumulation values.
- - - Fixed dollar annuity payments to begin on the annuity start date.
- - - This contract is nonparticipating.
American Centurion Life Assurance Company
P.O. Box 5550
Albany, NY 12205-0550
<PAGE>
PAGE 1
American Centurion P.O. Box 5555
Life Assurance Company Albany, New York 12205-0555
An American Express Company
Group Deferred Variable Annuity Application
Section I Client Information
Full legal name of applicant_______________________________________
__ corporation
__ other_______________________________________________________
Address____________________________________________________________
___________________________________________________________________
Nature of Business_________________________________________________
If clients of subsidiary of affiliate companies (companies under
common control through stock ownership, contract or otherwise) are
to be covered, list legal names and addresses of such companies and
the nature of this business.
___________________________________________________________________
___________________________________________________________________
Section II Effective Date
Requested Effective Date___________________________________________
Eligibility Requirements (see back of this application)
Remarks____________________________________________________________
___________________________________________________________________
Section III Acknowledgment/Signatures
I/we hereby acknowledge receipt of current prospectuses for the
variable annuity and any funds involved.
Dated at,_______________________State of________________________
the____________day of__________________, 19__.
Witness_____________________ Applicant_________________________
by__________________________
Title__________________________
32041 10/95
<PAGE>
PAGE 2
ELIGIBILITY REQUIREMENTS
Participating Groups:
Any group may be included under the contract as a Participating
Group upon agreement of American Centurion Life Assurance Company,
the contractholder and the Group; provided that such inclusion is
not contrary to any applicable laws or regulations. Such inclusion
shall be as evidenced by a participating Group's application.
The contractholder may act for and on behalf of any and all of the
Participating Groups in all matters pertaining to the Contract; and
every act taken by the Contractholder, or notice given by American
Centurion Life Assurance Company to the Contractholder or by the
Contractholder to American Centurion Life Assurance Company, shall
be binding on all Participating Groups.
Eligible Persons:
Each eligible Participant of a Participating Group, as defined in
the participating Group's Application, and any other person who
becomes a member of the group is eligible to apply for annuity
benefits under the Contract; if at the time of application, he or
she is within the eligibility age limits established by American
Centurion Life Assurance Company for those applying; is a resident
or citizen of the United States of America; and is not a resident
of Puerto Rico, a foreign country or a place which will not allow
American Centurion Life Assurance Company to offer annuity benefits
under the Contract.
32041 10/95
<PAGE>
PAGE 1
<TABLE>
<CAPTION>
American Centurion Life Assurance Company (ACL) Variable Annuity
P.O. Box 5550 Participant Enrollment
Albany, NY 12205-0550 Form
An American Express Company
<S> <C> <C> <C> <C> <C>
___________________________________________________________________________________________________________________________________
1. Who is the Proposed Annuitant? Is Annuitant the owner? __ Yes __ No (Always complete this section)
___________________________________________________________________________________________________________________________________
__ Mr. __ Mrs. Annuitant's name (first) (full middle) (last)
__ Miss __ Ms.
___________________________________________________________________________________________________________________________________
Social Security # Birthdate Marital status __ Male Citizenship
__ Female __ U.S. __ Other
___________________________________________________________________________________________________________________________________
Home address (street) (city) (state) (zip)
___________________________________________________________________________________________________________________________________
Telephone (Please provide both day and evening numbers) Day: ( ) Best time to call
Evening: ( ) Best time to call
___________________________________________________________________________________________________________________________________
2. Who will be the Owner? (Complete if owner is other than proposed annuitant)
___________________________________________________________________________________________________________________________________
__ Mr. __ Mrs. Owner's name (first) (full middle) (last)
__ Miss __ Ms.
___________________________________________________________________________________________________________________________________
Taxpayer ID or Social Security # Birthdate Relationship to annuitant
___________________________________________________________________________________________________________________________________
Home address (street) (city) (state) (zip)
___________________________________________________________________________________________________________________________________
3. What type of Annuity are you purchasing, and how will you pay for it? (Always complete this section)
___________________________________________________________________________________________________________________________________
__ Nonqualified __ IRA __ SEP Name of Employer____________________ Amount submitted
__ Individual purchase __ Personal ____________________________________________ $___________________
__ 1035 exchange __ Spousal Address_____________________________________ note: $2,000 minimum nonqualified
__ IRA Rollover ____________________________________________ $1,000 minimum qualified
__ IRA Transfer ____________________________________________ or $1,200 annually if installment
Annual amount intended
$____________________
___________________________________________________________________________________________________________________________________
Premium Payment Frequency Method of Payment (note: Minimum premium is waived if application includes setup of periodic
__ Biweekly payment of $100 or more)
__ Monthly __ Quarterly __ Bank Authorization __ Check
__ Semiannually __ Annually __ Wire __ 1035 exchange (please submit exchange form)
___________________________________________________________________________________________________________________________________
4. How will you allocation your Investment Allocate in whole percentages. Total must equal 100%
___________________________________________________________________________________________________________________________________
Fixed Account ______% INVESCO VIF Industrial Income _______% (*the entire portion of any net
IDS Life Aggressive Growth Fund ______% ____________________ _______% purchase payment that I allocate to
IDS Life Capital Resource Fund ______% ____________________ _______% the Variable Accounts will be invested
IDS Life International Equity Fund ______% ____________________ _______% in the Moneyshare Fund until the end
IDS Life Managed Fund ______% ____________________ _______% of the Right to Examine the
IDS Life Moneyshare Fund* ______% ____________________ _______% Certificate period.)
IDS Life Special Income Fund ______%
___________________________________________________________________________________________________________________________________
5. Who will be the beneficiary(ies) of this certificate? (Always complete this section)
___________________________________________________________________________________________________________________________________
__ A. Beneficiary is: Annuitant's spouse, if living, otherwise the beneficiaries are the living lawful children of the Annuitant,
equally.
Annuitant spouse's full name _____________________________________________________________________
__ B. Other designation _____________________________________________________________________
Relationship to Annuitant _____________________________________________________________________
___________________________________________________________________________________________________________________________________
6. Notes
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
32027 C (10/95)
<PAGE>
PAGE 2
7. Replacement: Will this certificate replace or change any existing life insurance or annuity?
___________________________________________________________________________________________________________________________________
__ Yes (if yes, please provide company name below) __ No
___________________________________________________________________________________________________________________________________
Company Name Policy Number
___________________________________________________________________________________________________________________________________
8. Please read carefully, check appropriate boxes, and sign below.
___________________________________________________________________________________________________________________________________
SUITABILITY
Investment Objectives: I understand the investment objectives and risks of the certificate for which I am applying. There can be
no assurance that such objectives will be achieved.
My specific long-term objectives are:
__ Aggressive Growth __ Growth with Income __ Income __ Growth __ Tax Deferral __ Preservation of Principal
My risk tolerance for investment is: __ Low __ Medium __ High
My Federal income tax bracket is: __ 15% __ 28% __ 31% __ 36% __ 39.6% __ Other
My annual income is: __ Under $15,000 __ $15,000 to $24,999 __ $25,000 to $49,999 __ $50,000 to $99,999 __ $100,000 or more
Specify any securities firm with which you are affiliated:_______________________________________________________.
___________________________________________________________________________________________________________________________________
Privacy of Client Information: You authorize (a) ACL and its affiliates, subsidiaries and agents authorized by ACL to use
information about you to administer your annuity certificate, and (b) ACL and its affiliates and subsidiaries and other providers
of products and services through American Express Financial Services Direct authorized by ACL to use information ACL maintains
about you, including information from the application, for marketing and administrative purposes and to share such information with
each other. If you object to the use of information described in (b), please telephone American Express Financial Services Direct
at 1-800-633-3565.
Except as described above, we will not release information about you to others unless you have asked us to do so or we are required
by law or other regulatory authority.
Deferred Annuity
The basic purpose of an annuity is to provide lifetime income at retirement and it should be purchased for this purpose. You
should be aware of the benefits and consequences of tax deferral, and be confident that it can work to your advantage. The
certificate value may be surrendered in full or in part before annuity payments begin, but not after.
We reserve the right to terminate certain installment payment certificates for full value, if an any 36 month period, no purchase
payments have been received and the total amount paid is less than $1,000.
IRA Applications
By signing below I acknowledge receipt of the IRA Disclosure Guide and understand the terms contained in it. I assume all
responsibility for any tax consequences and penalties that may result from making contributions to, transactions with and
distributions from this IRA.
___________________________________________________________________________________________________________________________________
AGREEMENTS
___________________________________________________________________________________________________________________________________
Cancellation: The certificate provides me with certain cancellation privileges for a period of time from receipt (usually 10 days)
under which no fees will be charged by the company.
I agree that each of the statements and answers given in this application is true and complete to the best of my knowledge and
belief, and will be the basis of any annuity issued from this application. I certify under penalties of perjury that (1) my social
Security Number as listed on this application is correct, and (2) that I am not subject to backup withholding either because I have
not been notified that I am subject to backup withholding as a result of a failure to report all interest and dividends, or the
Internal Revenue Service has notified me that I am no longer subject to backup withholding.
By signing below, I acknowledge receipt of the appropriate prospectuses. The certificate value and cash surrender value when based
on a separate account may increase or decrease on any day depending upon the investment results. No minimum cash surrender value
is guaranteed. All values under the variable annuity provisions of the certificate are variable and are not guaranteed as to
fixed-dollar amounts.
___________________________________________________________________________________________________________________________________
SIGNATURES:
Signed on (date) __________________________ at (city) ______________________, (state) __________________________
X___________________________________________________ X__________________________________________________
Signature of Owner Signature of Annuitant (If different from owner)
This application __ does __ does not involve replacement of existing insurance or annuities.
Licensed Agent/witness X_______________________________________________________________ Date _________________
___________________________________________________________________________________________________________________________________
32027C (10/95)
</TABLE>
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AMENDED AND RESTATED
ARTICLES OF INCORPORATION
OF
AMERICAN CENTURION LIFE ASSURANCE COMPANY
ARTICLE I
The name of this Corporation shall be:
American Centurion Life Assurance Company
ARTICLE II
The principal office of this Corporation shall be located in the
County and State of New York.
ARTICLE III
Section 1. The kind or kinds of insurance to be transacted by the
Corporation are those kinds specified in Paragraph "(1)", "(2)" and
"(3)", Section 1113(a), of Article 11 of the Insurance Law of the
State of New York, as follows:
1. "Life insurance," means every insurance upon the lives
of human beings and every insurance appertaining
thereto, including the granting of endowment benefits,
additional benefits in the event of death by accident,
additional benefits to safeguard the contract from
lapse, or provide a special surrender value, upon
total and permanent disability of the insured, and
optional modes of settlement of proceeds. Amounts
paid the insurer for life insurance and proceeds
applied under optional modes of settlement or under
dividend options may be allocated by the insurer to
one or more separate accounts pursuant to section four
thousand two hundred forty of this chapter.
2. "Annuities," means all agreements to make periodical
payments where the making or continuance of all or of
some of a series of such payments, or the amount of
any such payment, depends upon the continuance of
human life, except payments made under the authority
of paragraph one hereof. Amounts paid to the insurer
to provide annuities and proceeds applied under
optional modes of settlement or under dividend options
may be allocated by the insurer to one or more
separate accounts pursuant to section four thousand
two hundred forty of this chapter.
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3. "Accident and health insurance," means
(a) insurance against death or personal injury by
accident or by any specified kind or kinds of
accident and insurance against sickness, ailment
or bodily injury, including insurance providing
disability benefits pursuant to article nine of
the workmen's compensation law, except as
specified in subparagraph (b) following; and
(b) Non-cancellable disability insurance, meaning
insurance against disability resulting from
sickness, ailment or bodily injury (but
excluding insurance solely against accidental
injury) under any contract which does not give
the insurer the option to cancel or otherwise
terminate the contract at or after one year from
its effective date or renewal date.
Section 2. The Corporation shall also have the power to cede,
reinsure and/or assume the above described kinds of insurance
subject to the Insurance Law and the rules and regulations of the
Insurance Department of the State of New York.
Section 3. The foregoing enumeration of specific kinds of
insurance shall not be held to limit or restrict the powers of the
Corporation to carry on any other business to the extent
necessarily or properly incidental to such kinds of insurance.
Section 4. Upon receipt of a special permit from the
Superintendent of Insurance and in compliance with the New York
Insurance Law, (Section 4231 thereof) the Corporation shall have
the power to permit its policyholders from time to time to
participate in the profits of its operations, and for this purpose
to make reasonable classifications of policies, in each instance as
the Board of Directors may determine and as may be permitted or
required by law.
ARTICLE IV
The mode and manner in which the corporate powers of the
Corporation shall be exercised is through a Board of Directors and
through such Committees of the Board of Directors, officers and
agents as such Board and the By-Laws of the Corporation shall
empower.
ARTICLE V
Section 1. The number of the directors of the Corporation shall
not be less than thirteen (13) nor more than twenty-three (23) and
shall be determined by the provisions of the By-Laws, or subject to
the provisions of the By-Laws, the exact number of Directors shall
be fixed by resolution of the Board of Directors. In no case shall
a decrease in the number of directors shorten the term of any
incumbent director.
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Section 2. The directors shall be elected by ballot at each annual
meeting of the stockholders of the corporation, and the directors
so elected shall hold office for one year and until their
respective successors shall have been elected and shall have
qualified. The directors shall be chosen and elected by a
plurality of the whole number of shares voted.
Section 3. A Director may be removed by the majority vote of the
stockholders at any of their meetings. A Director may also be
removed by the vote of a majority of the remaining Directors at a
special meeting of the Board called by the President or Secretary,
at the request of the Superintendent of Insurance of New York.
Section 4. Whenever any vacancy in the Board of Directors shall
occur by death, resignation, removal or otherwise, and whenever the
number of directors is increased, such vacancy may be filled and
such additional directors may be elected, for the remainder of the
term in which such event shall happen, by a majority vote of the
directors then in office in such manner as may be prescribed by the
By-Laws.
Section 5. If the directors shall not be elected in any year at
the annual meeting of stockholders as hereinabove provided, or if,
because of a vacancy or vacancies on the Board of Directors, the
number of the Board shall be less than thirteen (13), the
Corporation shall not for that reason be dissolved, but every
director shall continue to hold office and discharge his duties
until his successor shall have been elected.
Section 6. At all times a majority of the directors shall be
citizens and residents of the United States, not less than three
(3) thereof shall be residents of the State of New York, and each
director shall be at least twenty-one (21) years of age.
ARTICLE VI
The Board of Directors of the Corporation shall, immediately after
the organization of the Corporation, and thereafter at its first
meeting after each election of directors by the stockholders, elect
from their number a Chairman and a President and shall also elect a
Treasurer and a Secretary who need not be members of the Board of
Directors, each of whom shall hold office at the pleasure of the
Board and until his successor shall be elected by the Board of
Directors. The Board of Directors of the Corporation shall have
power at any time to appoint one or more Vice Presidents and such
other officers, agents or clerks as said Board of Director shall
deem expedient or proper for carrying on the business of the
corporation and any person so appointed shall hold office at the
pleasure of the Board of Directors. Vacancies in any elective
office may be filled for the remainder of the term in which the
same shall occur by a majority vote of the directors then in
office.
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ARTICLE VII
Except as otherwise provided by law, the presence in person or by
proxy at any meeting of stockholders of the holders of a majority
of shares of the capital stock of the Corporation issued and
outstanding and entitled to vote thereat shall constitute a quorum.
If, however, such majority shall not be represented at any meeting
of the stockholders, the holders of a majority of the shares
present or represented and entitled to vote thereat shall have
power to adjourn the meeting from time to time without notice until
the requisite amount of shares entitled to vote at such meeting
shall be represented. At such adjourned meeting at which the
requisite number of shares entitled to vote thereat shall be
represented, any business may be transacted which might have been
transacted at the meeting as originally notified.
The annual meeting of the stockholders of the Corporation shall be
held in the State of New York on the last Tuesday of April in each
year. Should the day designated fall on a legal holiday, then said
meeting shall be held on the next succeeding full business day.
ARTICLE VIII
The names and post office residence addresses of the directors, who
shall serve until the first annual meeting of the Corporation, are
as follows:
Post Office
Name Residence Address
SIDNEY BARON 60 Turner Place
Brooklyn, New York
FRED P. DAWSON 17 Waller Avenue
Ossining, New York 10562
HAROLD S. NACHMANN 3 Washington Square Village
New York, New York 10012
HOWARD W. BENNETT 218 Northfield Road
Millington, New Jersey
THOMAS A. LYNCH, JR. 5 Edgewood Court
Parsippany, New Jersey
WESLEY F. MULLER 320 South Street, Apt. F-1
Morristown, New Jersey
DAVID J. SHERWOOD 85 May Drive
Chatham, New Jersey 07928
FRANCIS VAN ORMAN 83 Old Short Hills Road
Short Hills, New Jersey
JOHN I. AHLERS 12 Capilano Drive
Novato, California 94947
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ROBERT P.J. COONEY 2618 Buchanan Street
San Francisco, California
JAMES F. CRAFTS 2604 Jackson Street
San Francisco, California
94115
KENNETH T. KING 553 Ravenscourt Road
Hillsborough, California
FRED H. MERRILL 2222 Hyde Street
San Francisco, California
LOUIS W. NIGGEMAN 296 Makin Grade
Kentfield, California
ARTICLE IX
The duration of the corporate existence of this Corporation shall
be perpetual.
ARTICLE X
The holders of stock of the Corporation shall not have any pre-
emptive, preferential or other right to subscribe for or purchase
or acquire any shares of any class of stock or any other securities
of the Corporation, whether now or hereafter authorized, and
whether or not convertible into, or evidencing or carrying the
right to purchase, shares of stock of any class or any other
securities now or hereafter authorized and whether the same shall
be issued for cash, services or property, or by way of dividend, or
otherwise, other than such right, if any, as the Board of Directors
in its discretion from time to time may determine; but all such
shares of stock or other securities may be issued and disposed of
by the Board of Directors, to the extent permitted by law, in such
manner to such person or persons, on such terms, for such
consideration and for such corporate purposes as the Board of
Directors may deem advisable.
The fiscal year of the Corporation shall be the calendar year.
ARTICLE XI
The amount of the authorized capital of this Corporation shall be
ONE MILLION ($1,000,000) DOLLARS, to consist of ONE HUNDRED
THOUSAND (100,000) shares of stock of the par value of TEN ($10.00)
DOLLARS per share.
ARTICLE XII
The Corporation may establish, maintain and operate offices and
agencies and conduct business outside of the State of New York and
in other states, territories, dependencies, protectorates and in
the District of Columbia, in such form and manner as the Board of
Directors may determine.
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ARTICLE XIII
The Board of Directors shall adopt By-Laws for its own regulation
and that of the conduct of the business of the Corporation, which
By-Laws shall not be inconsistent with this Charter or with the
laws of the State of New York, and which By-Laws may be modified,
rescinded or amended from time to time by majority vote of the
Board of Directors at any special meeting called for that purpose,
or at any regular meeting.
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PAGE 1
AMENDED
BY-LAWS
OF
AMERICAN CENTURION LIFE ASSURANCE COMPANY
ARTICLE I
LOCATION
Section 1. The principal office of the Company shall be in the
City of New York, County of New York and State of New York. The
Company may, in addition to the principal office, establish and
maintain such other office or offices, whether in the State of New
York or otherwise, as the Board of Directors may from time to time
authorize or the business of the Company may require.
ARTICLE II
STOCKHOLDERS
Section 1. Annual Meeting. The annual meeting of the stockholders
of the Company shall be held within New York State at a place
determined by the Board of Directors on the last Tuesday of April
of each year, or, if that day is a legal holiday, then on the
following day which is not a legal holiday.
Section 2. Special Meetings. Except as otherwise provided by
statute, special meetings of the stockholders shall be held in the
State of New York and may be called by the Chairman of the Board,
the President or by order of the Board of Directors at any time and
shall be called by the Board of directors upon the written request
of a stockholder or stockholders holding a majority in interest of
the stock of the Company issued and outstanding and entitled to
vote at the meeting.
Section 3. Proxies. At any stockholders meeting, any stockholder
entitled to vote may vote either in person or by proxy. Each proxy
must be executed in writing by the stockholder of the Company or
his duly authorized attorney. No proxy shall be valid after the
expiration of eleven months from the date of its execution unless
it shall have specified therein its duration.
Every proxy shall be revocable at the discretion of the person
executing it or his personal representative or assigns, except as
may be otherwise provided by law.
Section 4. Notice of Meetings. Written notice of the time and
place of every annual or special meeting of stockholders, stating
the place and day and hour thereof, shall be given by the person or
persons calling the meeting not less than ten (10) nor more than
forty (40) days before the meeting, to each stockholder entitled to
vote thereat and to each stockholder entitled to such notice, by
leaving such notice with him, or at his residence or usual place of
business, or by mailing it, postage prepaid, and addressed to such
stockholder at his address as it appears upon the books of the
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Company. Any such notice of meeting of stock-holders shall state
the purpose for which it is called. A copy of any notice of meeting
shall be filed in the office of the Superintendent of Insurance of
the State of New York, at the same time that such notice is left
with or mailed to stockholders.
Section 5. Quorum. Except as otherwise provided by law, or in
these By-Laws, the presence in person or by proxy at any meeting of
stockholders of the holders of a majority of shares of the capital
stock of the Company issued and outstanding and entitled to vote
thereat shall constitute a quorum. If, however, such majority shall
not be represented at any meeting of stockholders, the holders of a
majority of the shares present or represented and entitled to vote
thereat shall have power to adjourn the meeting from time to time
without notice other than announcement of adjournment of the
meeting, until the requisite amount of shares entitled to vote at
such meeting shall be represented. At such adjourned meeting at
which the requisite amount of shares entitled to vote thereat shall
be represented, any business may be transacted which might have
been transacted at the meeting as originally notified.
Section 6. Voting at Meetings. At all meetings of stockholders
every stockholder entitled to vote thereat shall have one vote for
each share of stock entitled to vote thereat outstanding in his
name on the books of the Company on the date for the determination
of stockholders entitled to vote at such meeting.
All elections of directors shall be held by ballot. If the Chairman
of the meeting shall so determine, a vote may be taken upon any
other election or matter by ballot and shall be so taken upon the
request of the holders of ten (10%) percent of the stock entitled
to vote on such election or matter.
At all such elections the Chairman shall appoint an inspector of
election who shall first take and subscribe an oath or affirmation
faithfully to execute the duties of inspector at such meeting with
strict impartiality and according to the best of his ability and
who shall take charge of the polls and after the balloting shall
make a certificate of the result of the vote taken; but no director
or candidate for the office of director shall be appointed as such
inspector.
Section 7. Organization. Meetings of the stockholders shall be
presided over by the Chairman or, if he is not present, by the
President or, if he is not present, by a Vice President in the
order determined by the Chairman of the Board or, if none of the
foregoing is present, by a chairman to be chosen by a majority of
the stockholders entitled to vote who are present in person or by
proxy at the meeting. The Secretary of the Company, or in his
absence an Assistant Secretary, shall act as secretary of every
meeting, but if neither the Secretary nor an Assistant Secretary is
present, the meeting shall choose any person present to act as
secretary of the meeting.
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ARTICLE III
BOARD OF DIRECTORS
Section 1. Election and Qualification of Directors. Directors
shall be elected by ballot at the annual meeting of stockholders by
a plurality of the votes cast and shall hold office for one year
and until their respective successors shall have been elected and
shall have qualified. All directors shall be of full age and at
least a majority shall be citizens and residents of the United
States and not less than three (3) shall be residents of the State
of New York. Directors need not be stockholders. A copy of the
notice of any meeting at which directors are to be elected which is
sent to the stockholders shall be filed in the office of the
Superintendent of Insurance of the State of New York at least ten
(10) days before the day on which such meeting is to be held.
Section 2. Number of Directors. The number of directors shall not
be less than thirteen (13) nor more than twenty-three (23).
Subject to change by action of the stockholders or by resolution of
the Board of Directors, the number of directors of the Company
shall be thirteen (13). Any change in the number of directors made
by resolution of the Board of Directors shall require the
affirmative vote of a majority of all directors then in office but
no decrease in the number of directors so made shall shorten the
term of any incumbent director.
Section 3. Vacancies. A vacancy or vacancies in the Board
resulting from death, resignation or removal of any director or
from the increase in the number of directors, or for any other
cause, may be filled for the remainder of the term by majority vote
of the remaining directors at any regular meeting of the Board or
at any special meeting called for that purpose. A director so
elected shall not take office or exercise the duties thereof until
ten (10) days after written notice of his election shall have been
filed in the office of the Superintendent of Insurance of the State
of New York.
Section 4. Duties and Powers. The Board of Directors shall have
control and management of the affairs and property of the Company
and may adopt such rules and regulations for the conduct of their
meetings and the management of the Company as they deem proper not
inconsistent with law or with the Company's charter or with these
By-Laws.
Section 5. Meetings. Regular meetings of the Board shall be held
not less often than quarterly, without previous notice, at such
times and places as the Board shall fix. Special Meetings shall be
called by the Secretary at the request of the Chairman of the
Board, the President or of the Executive Committee, upon at least
twelve hours' notice in person or by mail, telephone or telegraph.
Meetings of the Board of Directors may be held within or without
the State of New York as determined from time to time by resolution
of the Board of Directors or as may be specified in the call of the
meeting.
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Any one or more members of the Board of Directors or any committee
thereof may participate in a meeting of the Board or committee
thereof by means of a conference telephone or similar
communications equipment allowing all persons participating in the
meeting to hear each other at the same time. Participation by such
means shall constitute presence in person at a meeting.
Section 6. Quorum. A majority of the Board of Directors then in
office at a meeting duly assembled and at least one independent
director shall be necessary to constitute a quorum for the
transaction of business and the act of a majority of directors
present at such meeting shall be the act of the Board.
Section 7. Resignations. Any director of the Company may resign
at any time by giving written notice to the Board or to the
President or to the Secretary of the Company. Such resignation
shall take effect at the time specified therein; and unless
otherwise specified therein the acceptance of such resignation
shall not be necessary to make it effective.
Section 8. Removal. Any one or more of the directors may be
removed either with or without cause at any time by a vote of a
majority of the stock issued and outstanding and entitled to vote.
Section 9. Committees. The Board of Directors may, majority vote,
designate an Executive Committee and other special committees, as a
majority of the entire Board may from time to time deem advisable,
prescribing their duties. Each such committee shall have at least
three (3) members and shall consist of such members of the Board as
may be designated from time to time by the Board of Directors with
respect to each committee. Members of all committees shall serve at
the pleasure of the Board.
The Executive Committee shall have and may exercise so far as may
be permitted by law all the powers of the Board in the management
of the business affairs and property of the Company during the
intervals between meetings of the Board and shall have power to
authorize the seal of the Company to be affixed to all papers which
may require it; but the Executive Committee shall not have power to
change the number of or to fill vacancies in the Board or to change
the membership of or to fill vacancies in the Executive Committee
or any other committee or to make or amend the By-Laws of the
Company.
Among its other duties, but not limited thereto, the Executive
Committee shall be charged with the duty of supervising or making
the investments or loans of the Company as prescribed by law.
A majority of the members of any committee and at least one
independent director shall constitute a quorum of such committee
for the transaction of business. Said committees may hold meetings
and make rules for the conduct of their business as they shall from
time to time deem necessary. All actions of any committee shall be
reported at the meeting of the Board next succeeding such action.
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Section 10. Compensation of Directors. Directors may, by
resolution of the Board of Directors, be allowed a fixed sum and
expenses for attendance at regular or special meetings of the Board
of Directors; provided that nothing herein contained shall be
construed to preclude any director from serving the Company in any
other capacity and receiving compensation therefor to the extent
permitted by law. Members of special or standing committees, and
others who attend pursuant to direction, may, by vote of the Board
of Directors, be allowed a fixed sum and expenses for attending
committee meetings.
ARTICLE IV
OFFICERS
Section 1. Officers. The Board of Directors, as soon as possible
after the annual election of directors, shall elect from their
number a Chairman of the Board and a President of the Company and
shall also elect a Secretary and a Treasurer, who need not be
members of the Board of Directors. The Board may also appoint one
or more Vice Presidents, one of whom may be designated as Executive
Vice President, and such Assistant Treasurers or Assistant
Secretaries, or other officers, as it may deem proper. Any two or
more offices may be held by the same person except the offices of
President and Secretary.
Section 2. Election. Each officer of the Company shall be elected
or appointed at the annual meeting of the Board of Directors and
shall hold office for one year, and until his successor is chosen
and qualified, or until he shall have died or resigned or shall
have been removed as hereinafter provided.
Section 3. Duties of the Chairman of the Board. The Chairman of
the Board of Directors shall be the chief executive officer of the
Corporation and shall have general supervision over the affairs of
the Corporation. He shall preside at all meetings of the Board of
Directors and at all meetings of stockholders. The Chairman of the
Board of Directors shall ex-officio be a member of all committees
of the Board of Directors and shall perform all such other duties
as may be prescribed by the Board of Directors.
Section 4. Duties of the President. The President shall possess
such powers and perform such duties as may be prescribed by the
Board of Directors or by the chief executive officer.
Section 5. Duties of Vice Presidents. Each Vice President shall
undertake such of the duties of the President, or such other duties
as may be delegated to him from time to time by the Chairman of the
Board, the President or by the Board of Directors.
Section 6. Duties of Treasurer. The Treasurer shall carry out
such duties as are incident to his office and shall be charged with
the supervision of the keeping of the funds and books of account of
the Company and with their safekeeping. He shall further perform
such other duties as may be delegated to him by the Board of
Directors, the Chairman of the Board or by the President. Any
Assistant Treasurer may perform the duties of the Treasurer in his
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absence, and such of the duties of the Treasurer as may be
delegated to him by that officer or by the Board of Directors, the
Chairman of the Board or the President.
Section 7. Duties of Secretary. The Secretary of the Company
shall be the Secretary to the Board of Directors and to the
Company. He shall attend all meetings and keep accurate records
thereof and shall record all votes of the Company in a book kept
for that purpose. He shall perform other duties incident to his
office and such other duties as may be delegated to him by the
Board of Directors, the Chairman of the Board or the President. He
shall see that proper notice is given of all meetings of the
stockholders of the Company and of the Board of Directors, and he
shall keep in safe custody the contract records, lists of
stockholders, stockholder proxies and such corporate records as are
not otherwise provided for, and the seal of the Company. He shall
affix the seal to any instrument requiring the same. Any Assistant
Secretary may perform the duties of the Secretary in his absence,
and such of the duties of the Secretary as may be delegated to him
by that officer or by the Board of Directors, the Chairman of the
Board or the President.
Section 8. Removal. Any officer may be removed either with or
without cause at any time by a vote of a majority of the directors.
Section 9. Vacancies. Any vacancy in any of the offices mentioned
in this Article IV shall be filled for the unexpired portion of the
term by the Board of Directors.
ARTICLE V
CERTIFICATES OF STOCK
Section 1. Form of Stock Certificates. The stock of the Company
shall be represented by certificates, in such form as the Board of
Directors may from time to time prescribe, and signed by the
Chairman of the Board, the President or a Vice President and the
Secretary or an Assistant Secretary or the Treasurer or an
Assistant Treasurer. Where any such certificate is signed by a
transfer agent or transfer clerk and by a registrar, the signatures
of any such Chairman of the Board, President, Vice President,
Secretary, Assistant Secretary, Treasurer or Assistant Treasurer
upon such certificates may be facsimiles, engraved or printed. In
case any such officer who has signed or whose facsimile signature
has been placed upon such certificate shall have ceased to be such
before such certificate is issued, it may be issued by the Company
with the same effect as if such officer had not ceased to be such
at the date of its issue.
Every certificate of stock issued by the Company shall plainly
state upon the face thereof the number, kind and class of shares
which it represents.
Section 2. Transfers. Transfers of shares of stock shall be made
only upon the books of the Company by the registered holders in
person or by power of attorney duly executed and acknowledged and
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PAGE 7
filed with the Secretary of the Company, or with a duly appointed
Transfer Agent acting for and on behalf of the Secretary, and upon
the surrender of the certificate or certificates for such shares.
Section 3. Lost Certificates. If any certificate of stock shall
be lost, the holder thereof shall forthwith notify the Company of
the facts and the Board of Directors or the Executive Committee may
then authorize a new certificate to be issued to him subject to the
deposit of a bond in such amount and in such form and with surety
or sureties as the Board or the said Committee may require.
Section 4. Closing Stock Books. The Directors or the Executive
Committee may by resolution prescribe a period not less than ten
(10) nor more than forty (40) days prior to any meeting of
stockholders during which no transfer of stock on the books of the
Company may be made; or in lieu of prohibiting the transfer of
stock may fix a day and hour not less than ten (10) nor more than
forty (40) days prior to the holding of any meeting of stockholders
as the time as of which stockholders entitled to notice of and to
vote at such meeting shall be determined or for the taking of a
dividend list. The stock books may also be closed for the payment
of dividends for such like period, if any, as may be prescribed by
resolution of the Board of Directors or of the Executive Committee.
Section 5. Transfer Agent and Registrar. The Board of Directors
may appoint one or more transfer clerks or one or more transfer
agents and one or more registrars, and may require all certificates
for shares of stock to bear the signature or signatures of any of
them.
ARTICLE VI
INDEMNIFICATION OF OFFICERS AND DIRECTORS
Each director and officer shall be indemnified to the fullest
extent permitted under Article 7 of the Business Corporation Law of
New York, subject to the requirements of Section 62-a of the
Insurance Law of New York.
ARTICLE VII
CONFLICT OF INTERESTS
No director, officer, or employee of the Company shall receive, in
addition to his fixed salary or compensation, any money or
valuable thing, either directly or indirectly, or through any
substantial interest in any other corporation or business unit, for
negotiating, procuring, recommending or aiding in any purchase or
sale of property, or loan, made by the Company or any affiliate or
subsidiary thereof; nor shall he be pecuniarily interested, either
as principal, co-principal, agent or beneficiary, either directly
or indirectly, or through any substantial interest in any other
corporation or business unit, in any such purchase, sale or loan.
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ARTICLE VIII
AMENDMENTS
These By-Laws may be altered, repealed, or amended in whole or in
part by the Board of Directors at any regular meeting of the Board
of Directors, or at a special meeting called for that purpose,
provided that notice of the proposed change is incorporated in the
notice of such special meeting.
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PAGE 1
EMERGENCY BY-LAWS
OF
AMERICAN CENTURION LIFE ASSURANCE COMPANY
ARTICLE I
DESIGNATION OF ACTING DIRECTORS
Section 1. If at any time during an acute emergency, the number of
Directors of the Company who have the ability to be present at a
Board meeting under the By-Laws of American Centurion Life
Assurance Company, as amended from time to time, shall be less than
three (3), the shareholders of the Company shall have the power to
designate Acting Directors in such number as will bring to three
(3) the number of Directors and Acting Directors who have the
ability to be present at a Board meeting.
When used herein, the term "acute emergency" shall mean: "A period
in which, by reason of loss of life, epidemic disease, destruction
or damage of property, contamination of property by radiological,
chemical or bacteriological means, or disruption of the means of
transportation and communication, resulting from an attack, as
defined herein, it is impossible or impracticable for the business
of insurance in this state to be conducted in strict accord with
the provisions of law or charters applicable thereto."
When used herein, the term "attack" shall mean: "Any attack, actual
or imminent, or series of attacks by an enemy of a foreign nation
upon the United States causing, or which may cause, substantial
damage or injury to civilian property or persons in the United
States in any manner by sabotage or by the use of bombs, shellfire,
or nuclear, radiological, chemical, bacteriological, or biological
means or other weapons or processes."
Section 2. No person prohibited by law or by the Charter or By-
Laws of the Company from serving as a member of its Board shall be
eligible to serve as an Acting Director except that no person shall
be disqualified to serve as an Acting Director by reason of his not
being a stockholder of the Company, by his not being a resident of
the State of New York or a citizen of the United States, or by
reason of the number of the Directors or Acting Directors who are
Officers, Acting Officers or employees of the Company. No oath of
Acting Directors shall be required.
ARTICLE II
POWERS OF ACTING DIRECTORS
Section 1. Acting Directors designated pursuant to these Emergency
By-Laws shall be entitled to notice of and to vote at all meetings
of an Emergency Board of Directors equally with Directors. Each
Acting Director shall serve until the Director or Acting Director
in whose place he was elected or appointed shall attend a meeting
of the Board or until a Director is duly elected to fill the
vacancy in which such Acting Director has been serving, whichever
event occurs earlier.
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PAGE 2
Section 2. An Acting Director shall be entitled to the
compensation, if any, payable to a Director.
ARTICLE III
NOTICE OF MEETINGS OF THE EMERGENCY BOARD OF DIRECTORS
Section 1. Notwithstanding any contrary provision of law or of the
Charter and By-Laws of the Company, if at any time during an acute
emergency affecting the Company, no person otherwise empowered to
call meetings of the Board is capable of acting, a meeting thereof
may be called by any Director or Acting Director. If it shall be
impracticable or impossible to give notice of a meeting of the
Board in the manner prescribed by the Charter and By-Laws of the
Company and law other than this Article, the person calling such a
meeting may give notice thereof by making such reasonable efforts
as circumstances may permit to notify each Director and Acting
Director of the time and place of the meeting, but need not specify
the purposes thereof. Failure of any Director or Acting Director to
receive annual notice of a meeting of Directors and Acting
Directors shall not affect the power of the Directors and Acting
Directors present at such meeting to exercise the powers of an
Emergency Board of Directors as prescribed herein. Nothing
contained in this Article shall be construed as requiring a meeting
of the Board of the Company to be convened in any manner different
from that prescribed by the Charter, By-Laws, and by the provisions
of law other than this Article.
ARTICLE IV
DUTIES AND POWERS OF THE EMERGENCY BOARD OF DIRECTORS
Section 1. If three (3) or more Directors and/or Acting Directors
of the Company are present at any meeting of the Board duly
convened during an acute emergency affecting the Company, they
shall constitute the Emergency Board of Directors of the Company
which, notwithstanding any contrary provision of law or of the
Charter and By-Laws of the Company, shall have the power, subject
to the limitations prescribed herein, by a majority of those
present, to take any and every action which may be necessary to
enable the Company to meet the exigencies of the acute emergency
and conduct its business during such period, but no other powers.
Section 2. The powers of an Emergency Board of Directors shall
include, but shall not be limited to, the following powers:
a. To elect such Acting Officers as it may deem
necessary, without regard to the number of officers
which would otherwise be required, to serve in any
offices which are vacant or in place of any Officers
or Acting Officers who fail to appear and assume their
duties, to fix the compensation and determine the
powers and duties of Acting Officers and to remove
Acting Officers, but not to remove any Officer or to
fill any vacancy on a permanent basis or to cause the
Company to enter into any contract of employment for a
term of over one (1) year.
3/23/87
<PAGE>
PAGE 3
b. To cause the Company to change the location of its
principal office, or any of its places of business,
and to authorize such action as it may deem
appropriate to acquire space and facilities at the new
location, but not to acquire for use as its principal
office, property in fee or for a term of over one (1)
year.
c. To postpone any meeting of the Directors of the
Company if, in the judgment of the majority of the
members of such Emergency Board of Directors, it would
be impracticable to hold such meeting at the time it
would otherwise have been held or conducted.
ARTICLE V
POWERS AND DUTIES OF ACTING OFFICERS
Section 1. Acting Officers elected pursuant to these Emergency By-
Laws shall have such powers and duties and receive such
compensation as may from time to time be determined by the Board or
Emergency Board of Directors. Each Acting Officer shall serve until
the Officer in whose place he was elected shall appear and assume
his duties or until his Successor Officer or Acting Officer shall
be elected, whichever event occurs earlier.
ARTICLE VI
AMENDMENTS
Section 1. These Emergency By-Laws may be altered, repealed, or
amended in whole or in part by the Board of Directors at any
regular meeting of the Board of Directors, in accordance with the
applicable provisions of the By-Laws of the Company.
ARTICLE VII
INCORPORATION OF BY-LAWS
Section 1. The Charter and By-Laws of American Centurion Life
Assurance Company, as amended from time to time, shall be
incorporated herein insofar as they are not inconsistent with these
Emergency By-Laws.
3/23/87
<PAGE>
PAGE 1
Performance Calculations
NON-MONEY MARKET SUBACCOUNTS
TOTAL RETURN
The total return is the percentage change between the initial
investment at the beginning of the period and the total value of
the investment at the end of the period.
Total Return = Ending Total Value - Initial Investment
Initial Investment
The ending total value includes income and capital gains
distributions treated as reinvested. It also reflects deductions
for the contract administrative charge, charge and the mortality
and expense risk charge.
AVERAGE ANNUAL TOTAL RETURN
The average annual total return of a subaccount reflects the
average annual compounded rate of return of a hypothetical
investment over a period of one, five and ten years (or, if less,
up to the life of the subaccount), calculated according to the
following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1000.
T = average annual total return.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of the one, five
or ten year periods (or fractional portion
thereof).
The average annual total return reflects the deduction of the
contract administrative charge and mortality and expense risk
charge.
YIELD
Yield quotations will be based on all investment income earned
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
YIELD = 2 [( a - b + 1)6 - 1]
cd
a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the
period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of
the period.
<PAGE>
PAGE 2
MONEY MARKET SUBACCOUNT
SIMPLE YIELD
Simple yield for the money market subaccount will be based on the
net change in the value of a hypothetical investment (exclusive of
capital changes) from the beginning of a seven day period for which
yield is quoted. A prorata share of fund expenses accrued over the
seven day period is subtracted. The difference is divided by the
value of the subaccount at the beginning of the period to obtain
the base period return. The base period return is annualized by
multiplying by 365/7.
COMPOUND YIELD
Calculation of compound yield begins with the same base period
return used in the calculation of yield, which is then annualized
to reflect compounding according to the following formula:
Compound Yield = [(Base Period Return + 1)365/7] - 1
<PAGE>
PAGE 1
AMERICAN CENTURION LIFE ASSURANCE COMPANY
ACL Variable Annuity Account 1
POWER OF ATTORNEY
City of Albany
State of New York
Each of the undersigned, as a director and/or officer of American
Centurion Life Assurance Company (ACL), sponsor of the unit
investment trust consisting of the ACL Variable Annuity Account 1
in connection with the filing of registration statements on Form
N-4 under the Securities Act of 1933 and the Investment Company Act
of 1940, hereby constitutes and appoints William A. Stoltzmann,
Mary Ellyn Minenko and Eric L. Marhoun or any one of them, as
his/her attorney-in-fact and agent, to sign for him/her in his/her
name, place and stead any and all filings, applications (including
applications for exemptive relief), periodic reports, registration
statements (with all exhibits and other documents required or
desirable in connection therewith), other documents, and amendments
thereto and to file such filings, applications periodic reports,
registration statements, other documents, and amendments thereto
with the Securities and Exchange Commission, and any necessary
states, and grants to any or all of them the full power and
authority to do and perform each and every act required or
necessary in connection therewith.
/s/ Robert C. Auriema Dec. 11, 1995
Robert C. Auriema
Director
/s/ Alan R. Dakay Dec. 22, 1995
Alan R. Dakay
Vice Chairman and President,
Financial Institutions Division
Director
/s/ Clarence E. Galston Dec. 11, 1995
Clarence E. Galston
Director
/s/ Jay C. Hatlestad Dec. 15, 1995
Jay C. Hatlestad
Vice President and Controller
/s/ Robert A. Hatton Dec. 11, 1995
Robert A. Hatton
Director
/s/ William J. Heron Jr. Dec. 20, 1995
William J. Heron Jr.
Director
<PAGE>
PAGE 2
/s/ Richard W. Kling Dec. 18, 1995
Richard W. Kling
Director
/s/ Ryan R. Larson Dec. 11, 1995
Ryan R. Larson
Vice President - Product
Development
Director
/s/ Herbert W. Marache Jr. Dec. 11, 1995
Herbert W. Marache Jr.
Director
/s/ Kenneth W. Nelson Dec. 11, 1995
Kenneth W. Nelson
Director
Dec. , 1995
Doretta Rinaldi
Vice President - Marketing
Director
/s/ Stuart A. Sedlacek Dec. 11, 1995
Stuart A. Sedlacek
Chairman and President
Director
/s/ Anne L. Segal Dec. 11, 1995
Anne L. Segal
Director
/s/ Guerdon D. Smith Dec. 11, 1995
Guerdon D. Smith
Director
