<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. 1 (File No. 333-00519)
Post-Effective Amendment No.
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940 X
Amendment No. 1 (File No. 811-07511)
ACL VARIABLE ANNUITY ACCOUNT 2
___________________________________________________________________
(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)
Approximate Date of Proposed Public Offering
It is proposed that this filing will become effective March 1, 1997
(check appropriate box)
immediately upon filing pursuant to paragraph (b) of Rule 485
on (date) pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(1) of Rule 485
on (date) pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.
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PAGE 2
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.
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PAGE 3
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
11(a) Withdrawals from your contract
(b) NA
(c) Withdrawals from your contract
(d) Buying your annuity
(e) The annuity in brief<PAGE>
PAGE 4
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the
Statement of Additional Information
*Designates page number in the prospectus, which is hereby incorporated by reference
in this Statement of Additional Information.
/TABLE
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ACL Personal PortfolioSM
________________, 1997
Variable Annuity Prospectus
The ACL Personal PortfolioSM is a flexible premium 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 (AEFC). Purchase payments may be allocated
among different accounts, providing variable and/or fixed returns
and payouts. The annuity is available for individual retirement
annuities (IRAs), simplified employee pension plans (SEPs) and
nonqualified retirement plans.
ACL Variable Annuity Account 2
Sold by: American Centurion Life Assurance Company.
Home Office: 20 Madison Avenue Extension, P.O. Box 5555, Albany,
NY 12205-0555. Telephone: 1-800-504-0469.
This prospectus contains the information about the variable account
that you should know before investing. Refer to "The variable
account" 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,
IDS Life Special Income Fund, and IDS life Moneyshare Fund); The
OCC Accumulation Trust, formerly known as Quest for Value
Accumulation Trust (describing OCC Accumulation Trust Managed
Portfolio and OCC Accumulation Trust U.S. Government Income
Portfolio); The Putnam Variable Trust, formerly known as Putnam
Capital Manager Trust (describing Putnam VT Diversified Income
Fund, Putnam VT Growth and Income Fund, Putnam VT High Yield Fund
and Putnam VT New Opportunities Fund); and GT Global Variable
Investment Funds (describing GT Global Variable Latin America Fund
and GT Global Variable New Pacific Fund). Please read these
documents carefully and keep them 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 any
state securities commission passed upon the accuracy or adequacy of
this prospectus. Any representation to the contrary is a criminal
offense.
Please note that this annuity:
o is not a bank deposit
o is not federally insured
o is not endorsed by a bank or government agency
o involves investment risk including possible loss of principal
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A Statement of Additional Information (SAI) dated ___________, 1997
(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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Table of contents
Key terms.....................................................
The ACL Personal PortfolioSM 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.................................
OCC Accumulation Trust Managed Portfolio.................
OCC Accumulation Trust U.S. Government Income Portfolio..
Putnam VT Diversified Income Fund........................
Putnam VT Growth and Income Fund.........................
Putnam VT High Yield Fund................................
Putnam VT New Opportunities Fund.........................
GT Global Variable Latin America Fund....................
GT Global Variable New Pacific Fund......................
The fixed account.............................................
Buying your annuity...........................................
The retirement date......................................
Beneficiary..............................................
How to make payments.....................................
Charges.......................................................
Contract administrative charge...........................
Variable account administrative charge...................
Mortality and expense risk fee...........................
Withdrawal charge........................................
Waiver of withdrawal charges.............................
Valuing your investment.......................................
Number of units..........................................
Accumulation unit value..................................
Net investment factor....................................
Factors that affect variable subaccount
accumulation units...................................
Making the most of your annuity...............................
Automated dollar-cost averaging..........................
Transferring money between subaccounts...................
Transfer policies........................................
Two ways to request a transfer or a withdrawal...........
Withdrawals from your contract................................
Withdrawal policies......................................
Receiving payment when you request a withdrawal..........
Changing ownership............................................
Benefits in case of death.....................................
The annuity payout period.....................................
Annuity payout plans.....................................
Death after annuity payouts begin........................
Taxes.........................................................
Voting rights.................................................
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Substitution of investments...................................
Distribution of the contracts.................................
About American Centurion Life................................
Regular and special reports...................................
Services................................................
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.
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 annuity
payouts are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount may be paid on a variable or fixed basis.
Annuity unit - A measure of the value of each variable subaccount
used to calculate the annuity payouts you receive.
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 - The total value of your annuity before any
applicable withdrawal charge and any contract administrative charge
have been deducted.
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) - Fourteen 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.
Purchase payments - Payments made to American Centurion Life for an
annuity.
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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)
o Simplified Employee Pension Plans (SEPs)
All other annuities are considered nonqualified annuities.
Retirement date - The date when annuity payouts are scheduled to
begin. This date is first established when you start your
contract. You can change it in the future.
Withdrawal charge - A deferred sales charge that may be applied if
you make a withdrawal from your annuity before the retirement date.
Withdrawal value - The amount you are entitled to receive if you
fully withdraw your annuity. It is the contract value minus any
applicable withdrawal charge and contract administrative charge.
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 - Consists of fourteen 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 ACL Personal PortfolioSM in brief
Purpose: The ACL Personal PortfolioSM 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 retirement date), the annuity provides lifetime or other forms
of payouts to you or to anyone you designate.
Ten-day free look: You may return your annuity to your agent or
our Albany home office within 10 days after it is delivered to you
and receive a full refund of all your purchase payments.
Accounts: You may allocate your purchase payments among any or all
of:
o fourteen variable subaccounts of the variable account, each of
which invests in mutual funds with a particular investment
objective. The value of each variable subaccount varies with
the performance of the particular fund. We cannot guarantee
that the value at the retirement date will equal or exceed the
total of purchase payments allocated to the variable
subaccounts. (p. )
o one fixed account, which earns interest at rates that are
adjusted periodically by American Centurion Life. (p. )
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PAGE 11
Buying the annuity: Your agent will help you complete and submit
an application. Applications are subject to acceptance at our
Albany home office. You may buy a nonqualified annuity or a
qualified annuity including an IRA. Payment must be made in a lump
sum with the option of additional payments in the future.
o Minimum initial payment - $2,000
o Minimum additional payment - $50
o Maximum total payment(s) (without prior approval) - $1,000,000
Transfers: Subject to certain restrictions you may redistribute
your money among accounts without charge at any time until annuity
payouts begin, and once per contract year among the variable
subaccounts thereafter. You may establish automated transfers
among the fixed account and variable subaccount(s). (p. )
Withdrawals: You may withdraw all or part of your contract value
at any time before the retirement date. You also may establish
automated partial withdrawals. Withdrawals may be subject to
charges and tax penalties (including a 10% IRS penalty if
withdrawals are made prior to your reaching age 59 1/2) and may
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 an amount at
least equal to the contract value. (p. )
Annuity payouts: The contract value of your investment can be
applied to an annuity payout plan that begins on the retirement
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 may be made on a fixed or variable
basis, or both. Total monthly payouts include amounts from each
variable subaccount and the fixed account. (p. )
Taxes: Generally, your annuity grows tax-deferred until you fully
withdraw 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 ACL Personal PortfolioSM is subject to a $30 annual
contract administrative charge, a 0.15% variable account
administrative charge, a 1.25% mortality and expense risk fee and a
withdrawal charge.
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Expense summary
The purpose of this summary is to help you understand the various
costs and expenses associated with the ACL Personal PortfolioSM.
You pay no sales charge when you purchase the ACL Personal
PortfolioSM. 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 charges. These are deducted directly from the contract
value. They include:
Withdrawal charge: The withdrawal charge starts at 7% of the
purchase payment in the first contract year of payment receipt and
decreases by 1% each contract year thereafter. There is no
withdrawal charge on earnings and on purchase payments we received
in any contract year six or more years prior to the contract year
of withdrawal.
Annual contract administrative charge: $30.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable subaccounts' daily
accumulation unit values and are not charged directly to your
account. They include:
Mortality and expense risk fee: 1.25% per year, deducted from the
subaccounts of the variable account as a percentage of the average
daily net assets of the underlying fund.
Variable account administrative charge: 0.15% per year, deducted
from the subaccounts of the variable account 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>
OCC***
IDS Life IDS Life IDS Life IDS Life Accumulation
Aggressive International Capital IDS Life Special IDS Life Trust Managed
Growth Equity Resource Managed Income Moneyshare Portfolio
(after expense
limitations)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management fees .64% .86% .63% .62% .63% .54% .80%
Other expenses .04 .09 .04 .03 .04 .05 .14
Total .68%** .95%** .67%** .65%** .67%** .59%** .94%
<PAGE>
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OCC***
Accumulation
Trust U.S. Gov- Putnam VT Putnam VT GT Global GT Global
ernment Income Diversified Growth and Putnam VT Putnam VT New Variable Variable
Portfolio Income Income High Yield Opportunities Latin America New Pacific
(after expense (after expense (after expense
limitations) limitations) limitations)
Management fees .60% .70% .52% .70% .70% 1.00% 1.00%
Other expenses .40 .15 .05 .09 .14 .25 .25
Total 1.00% .85%+ .57%+ .79%+ .84%+ 1.25++ 1.25++
*Premium taxes imposed by some state and local governments are not reflected in this table.
**Annualized operating expenses of underlying mutual funds at Dec. 31, 1995.
***The annual expenses of the OCC Accumulation Trust Portfolios as of Dec. 31, 1995 have been restated to reflect new management
fee and expense limitation agreements in effect as of May 1, 1996. Effective May 1, 1996, the expenses of the Portfolios of the
OCC Accumulation Trust are contractually limited by OpCap Advisors so that their respective annualized operating expenses do not
exceed 1.25% of their respective average daily net assets. Furthermore, through April 30, 1997, the annualized operating
expenses of the Managed and U.S. Government Income Portfolios will be voluntary limited by OpCap Advisors so that annualized
operating expenses of these Portfolios do not exceed 1.00% of their respective average daily net assets. Without such voluntary
expense limitations, and taking into account the revised contractual provisions effective May 1, 1996 concerning management fees
and expense limitations, the Management Fees, Other Expenses and Total Portfolio Annual Expenses incurred for the fiscal year
ended Dec. 31, 1995 would have been .80%, .14% and .94%, respectively, for the Managed Portfolio and .60%, .65% and 1.25%,
respectively, for the U.S. Government Income Portfolio.
+Operating expenses of the underlying mutual funds at Dec. 31, 1995.
++Figures in the "Other Expenses" and "Total" columns are restated from the amounts you would have incurred in 1995 to reflect fee
and reimbursement or waiver arrangements. If there had been no reimbursement of expenses by LGT Asset Management and no expense
reductions, the actual expenses of each Fund, expressed as a percentage of net assets, with "Management fees" stated first, then
"Other expenses," followed by "Total," would have been as follows: GT Global Variable Latin America Fund, 1.00%, 0.69%, 1.69%;
and GT Global Variable New Pacific Fund, 1.00%, 0.61%, 1.61%.
Example:*
OCC
IDS Life IDS Life IDS Life IDS Life Accumulation
Aggressive International Capital IDS Life Special IDS Life Trust Managed
Growth Equity Resource Managed Income Moneyshare Portfolio
You would pay the following expenses on a $1,000 investment, assuming 5% annual return and full withdrawal at the end of each time
period:
1 year $ 92.87 $ 95.55 $ 92.77 $ 92.57 $ 92.77 $ 91.97 $ 95.45
3 years 120.49 128.53 120.20 119.60 120.20 117.80 128.23
5 years 150.75 164.15 150.25 149.25 150.25 146.24 163.65
10 years 258.90 285.57 257.89 255.88 257.89 249.81 284.60
You would pay the following expenses on the same investment assuming no withdrawal or selection of an annuity payout plan at the
end of each time period:
1 year $ 22.87 $ 25.55 $ 22.77 $ 22.57 $ 22.77 $ 21.97 $ 25.45
3 years 70.49 78.53 70.20 69.60 70.20 67.80 78.23
5 years 120.75 134.15 120.25 119.25 120.25 116.24 133.65
10 years 258.90 285.57 257.89 255.88 257.89 249.81 284.60
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PAGE 14
OCC
Accumulation
Trust U.S. Putnam VT Putnam VT GT Global GT Global
Government Diversified Growth and Putnam VT Putnam VT New Variable Variable
Income Portfolio Income Income High Yield Opportunities Latin America New Pacific
You would pay the following expenses on a $1,000 investment, assuming 5% annual return and full withdrawal at the end of each time
period:
1 year $ 96.04 $ 94.56 $ 91.77 $ 93.96 $ 94.46 $ 98.50 $ 98.50
3 years 130.01 125.56 117.20 123.78 125.27 137.36 137.36
5 years 166.60 159.21 145.23 156.24 158.72 178.77 178.77
10 years 290.42 275.79 247.78 269.87 274.81 314.23 314.23
You would pay the following expenses on the same investment assuming no withdrawal or selection of an annuity payout plan at the
end of each time period:
1 year $ 26.04 $ 24.56 $ 21.77 $ 23.96 $ 24.46 $ 28.50 $ 28.50
3 years 80.01 75.56 67.20 73.78 75.27 87.36 87.36
5 years 136.60 129.21 115.23 126.24 128.72 148.77 148.77
10 years 290.42 275.79 247.78 269.87 274.81 314.23 314.23
</TABLE>
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 .170% charge based on the estimated average
contract size.
Financial statements
The SAI dated ________________, 1997 contains:
The audited statutory financial statements of American Centurion
Life including:
- balance sheets as of Dec. 31, 1995 and Dec. 31, 1994
- related statements of operations, changes in capital and
surplus and cash flows for the years ended Dec. 31, 1995
and 1994
and the unaudited statutory financial statements for American
Centurion Life including:
- balance sheet as of Sept. 30, 1996 and
- related statements of operations, changes in capital and
surplus and cash flows for the 9 months ended Sept. 30,
1996
The SAI does not include financial statements of the variable
account because this is a new account that did not have any assets
as of Sept. 30, 1996.
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PAGE 15
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.
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
________________, which it was not. Performance figures are
calculated on the basis of historical performance of the funds.
Before the subaccounts began investing in these funds, the figures
show what the subaccount performance would have been if these
subaccounts had existed during the illustrated periods. Once these
subaccounts began investing in these funds, actual values are used
for the calculations.
Calculations are performed as follows:
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.
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 account
if it is less than ten years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, variable account administrative charge, mortality and
expense risk fee, and withdrawal charge, assuming a full withdrawal
at the end of the illustrated period. Optional average annual
total return quotations may be made that do not reflect a
withdrawal charge deduction (assuming no withdrawal).
Aggregate total return: Represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in a subaccount's accumulation unit value). The calculation
assumes reinvestment of investment earnings and reflects the
deduction of all applicable charges, including the contract
administrative charge, mortality and expense fee, variable account
administrative charge and withdrawal charge, assuming a withdrawal
at the end of the illustrated period. Optional aggregate total
return quotations may be made that do not reflect a withdrawal
charge deduction (assuming no withdrawal). Aggregate total return
may be shown by means of schedules, charts or graphs.
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PAGE 16
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 at the address or telephone number
on the cover.
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:
Subaccount
IDS Life Aggressive Growth Fund IAG
IDS Life International Equity Fund IIE
IDS Life Capital Resource Fund ICR
IDS Life Managed Fund IMG
IDS Life Special Income Fund ISI
IDS Life Moneyshare Fund IMS
OCC Accumulation Trust Managed Portfolio IMD
OCC Accumulation Trust U.S. Government
Income Portfolio IUS
Putnam VT Diversified Income Fund INO
Putnam VT Growth and Income Fund IGI
Putnam VT High Yield Fund IHY
Putnam VT New Opportunities Fund IDI
GT Global Variable Latin America Fund ILA
GT Global Variable New Pacific Fund IPA
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
subaccount alone. No variable subaccount will be charged with
liabilities of any other variable account or of our general
business.
The variable account was established under New York law on October
12, 1995, and the subaccounts are registered together as a single
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.
All obligations arising under the contracts are general obligations
of American Centurion Life.
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PAGE 17
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 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, 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.
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.
OCC Accumulation Trust Managed Portfolio
Objective: Growth of capital over time. Invests primarily in
common stocks, bonds and money market and cash equivalent
securities, the percentages of which will vary based on
management's assessment of relative investment values.
OCC Accumulation Trust U.S. Government Income Portfolio
Objective: to provide a high level of current income together with
protection of capital. Invests exclusively in debt obligations,
including mortgage-backed securities, issued or guaranteed by the
United States government, its agencies or instrumentalities.
Putnam VT Diversified Income Fund
Objective: high current income consistent with capital
preservation. Invests in the following three sectors of the fixed
income securities markets: U.S. government sector, high yield
sector and international sector.
<PAGE>
PAGE 18
Putnam VT Growth and Income Fund
Objective: capital growth and current income. Invests primarily in
common stocks that offer potential for capital growth, current
income, or both.
Putnam VT High Yield Fund
Objective: high current income and, when consistent with this
objective, a secondary objective of capital growth. Invests
primarily in high-yielding, lower-rated fixed income securities,
constituting a portfolio which Putnam Investment Management, Inc.
("Putnam Management") believes does not involve undue risk to
income or principal.
Putnam VT New Opportunities Fund
Objective: long-term capital appreciation. Invests principally in
common stocks of companies in sectors of the economy which Putnam
Management believes may possess above average long-term growth
potential.
GT Global Variable Latin America Fund
Objective: capital appreciation. Invests primarily in a broad
range of securities including common and preferred stock, rights,
warrants and securities convertible into common stock, as well as
bonds, notes, debentures or other forms of indebtedness of Latin
American issuers.
GT Global Variable New Pacific Fund
Objective: long-term growth of capital. Invests under normal
circumstances, at least 65% of its assets in equity securities of
issuers domiciled in Australia, Hong Kong, Indonesia, Malaysia, New
Zealand, the Philippines, Singapore, South Korea, Taiwan and
Thailand.
More comprehensive information regarding each fund is contained in
that fund's prospectus. You should read the fund prospectus and
consider carefully, and on a continuing basis, which fund or
combination of funds is best suited to your long-term investment
needs. There is no assurance that the investment objectives of the
funds will be attained nor is there any guarantee that the contract
value will equal or exceed the total purchase payments made. Some
funds may involve more risk than others. Please monitor your
investment accordingly.
All funds are available to serve as the underlying investment for
variable annuities, and some funds also are available to serve as
the underlying investment for 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 <PAGE>
PAGE 19
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.
IDS Life, is the investment manager and AEFC is the investment
advisor for each of the IDS Life funds. IDS International, Inc., a
wholly owned subsidiary of AEFC, is the sub-investment advisor for
IDS Life International Equity Fund. OpCap Advisors, is the
investment manager for the OCC Accumulation Trust portfolios.
Putnam Investment Management, Inc., is the investment manager for
the Putnam VT funds. Chancellor LGT Asset Management, is the
investment manager for the GT Global Funds.
The investment managers and advisors 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. These prospectuses are available by contacting American
Centurion Life at the home office address or telephone number on
the front of this prospectus.
The fixed account
Purchase payments can also be allocated to the fixed account. The
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 and
compounded daily to produce an effective annual interest rate. We
may change the interest rates 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 <PAGE>
PAGE 20
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
Your agent will help you prepare and submit your application, and
send it along with your initial purchase payment to our Albany home
office. As the owner, you have all rights and may receive all
benefits under the contract. You cannot buy an annuity or be an
annuitant if you are 86 or older.
When you apply, you can select:
o the subaccount(s) or fixed account 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
retirement date); and
o a beneficiary.
If your application is complete, we will process it and apply your
purchase payment to your subaccount(s) and fixed account 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 to your account(s) at the next
close of business. Additional purchase payments may be made to
nonqualified and qualified annuities until the retirement date.
The retirement date
Annuity payouts will be scheduled to begin on the retirement 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 retirement date must be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 90th birthday
For qualified annuities, to avoid IRS penalty taxes, the retirement
date generally must be:
o on or after the annuitant reaches age 59 1/2;
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
<PAGE>
PAGE 21
If you are taking the minimum IRA distributions as required by the
Code from another tax-qualified investment, or in the form of
partial withdrawals from this annuity, annuity payouts can start as
late as the annuitant's 90th birthday.
Beneficiary
If death benefits become payable before the retirement 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 payment
If single payment:
Nonqualified: $2,000
Qualified: $2,000
Minimum additional purchase payment(s): $50
Maximum payment(s): $1,000,000 of cumulative payments without
prior approval
How to make payments
By letter
Send your check along with your name and account number to:
Regular mail:
American Centurion Life Assurance Company
P.O. Box 5555
Albany, NY 12205-0555
Express mail:
American Centurion Life Assurance Company
20 Madison Avenue Extension
Albany, NY 12205
Charges
Contract administrative charge
This fee is for establishing and maintaining your records. We
deduct $30 from the contract value on your contract anniversary at
the end of each contract year. We will waive this charge when the
contract value is $50,000 or more on the current contract
anniversary.
If you take a full withdrawal from your contract, the $30 annual
charge will be deducted at the time of withdrawal regardless of
contract value. The annual charge cannot be increased and does not
apply after annuity payouts begin.
<PAGE>
PAGE 22
Variable account administrative charge
This charge is applied daily to the variable subaccounts and
reflected in the unit values of the subaccounts. Annually, it
totals 0.15% of their average daily net assets. It covers certain
administrative and operating expenses of the subaccounts such as
accounting, legal and data processing fees and expenses involved in
the preparation and distribution of reports and prospectuses. The
variable account administrative charge cannot be increased.
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 subaccounts. The subaccounts pay this fee at the
time dividends are distributed from the funds in which they invest.
Annually the fee totals 1.25% of the subaccounts 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 and variable account administrative charge
cannot be increased and may not cover our expenses. Any deficit
would have to be made up from our general assets.
We may use any profits realized from the mortality and expense risk
fee for any proper corporate purpose, including, among others,
payment of distribution (selling) expenses. We do not expect that
the withdrawal charge, discussed in the following paragraphs, will
cover sales and distribution expenses.
Withdrawal charge
If you withdraw part or all of your contract, you may be subject to
a withdrawal charge. The withdrawal amount you request is
determined by drawing from your total contract value in the
following order:
1. First we withdraw up to 10% of your prior anniversary contract
value not yet withdrawn this contract year. There is no withdrawal
charge on withdrawals totaling up to 10% of your prior anniversary
contract value each contract year.
2. Next we withdraw any contract earnings (contract value minus
all purchase payments received and not previously withdrawn) in
excess of the annual 10% free withdrawal amount. There is no
withdrawal charge on contract earnings.
<PAGE>
PAGE 23
3. Next, if necessary, we withdraw the old purchase payments,
starting with the first purchase payment made and not previously
withdrawn. There is no withdrawal charge on old payments that we
received in any contract year six or more years prior to the
contract year of withdrawal.
4. Finally, if necessary, we withdraw new purchase payments.
These are payments that we received during the contract year of
withdrawal and during the six immediately preceding contract years.
There is a withdrawal charge on new payments. We determine your
withdrawal charge by multiplying each of your new payments by the
applicable withdrawal charge percentage, and then totaling the
withdrawal charges.
The new payment withdrawal charge percentage depends on the number
of contract years since you made the payment(s).
Contract Years From Withdrawal Charge
Payment Receipt Percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
Withdrawal charge calculation example
We determine your withdrawal charge by multiplying each of your new
payments by the applicable withdrawal charge percentage and then
totaling the withdrawal charges.
For example, the withdrawal charge on a total withdrawal request
for a contract with this history:
o The contract date is July 1, 1997 with a contract year of July
1 through June 30 and with an anniversary date of July 1 each
year
o We received these payments - $10,000 July 1, 1997, $8,000 Dec.
31, 2003 and $6,000 Feb. 20, 2005
o The owner withdraws the contract for its total withdrawal
value of $38,101 on Aug. 5, 2007 and had not made any other
withdrawals during that contract year
o The prior anniversary July 1, 2007 contract value was $38,488
is calculated this way:
Withdrawal Charge Explanation
$ 0 $3,848.80 is 10% of the prior anniversary
account value withdrawn without withdrawal
charge; and
<PAGE>
PAGE 24
0 $10,252.20 is contract earnings in excess of
the 10% free withdrawal amount withdrawn
without withdrawal charge; and
0 $10,000 July 1, 1997 payment is an old payment
withdrawn without withdrawal charge; and
240 $8,000 Dec. 31, 2003 payment is a new payment
in its fifth contract year from receipt,
withdrawn with a 3% withdrawal charge; and
240 $6,000 Feb. 20, 2005 payment is a new payment
in its fourth contract year from receipt
withdrawn with a 4% withdrawal charge.
__________
$480
The withdrawal charge is calculated so that the total amount minus
any withdrawal charge equals the amount you request. If you take a
full withdrawal from your contract, the $30 contract charge will be
deducted.
Waiver of withdrawal charges
There are no withdrawal charges for:
o withdrawals during the year totaling up to 10% of your prior
contract anniversary contract value;
o contract earnings - if any - in excess of the annual 10% free
withdrawal amount; and
o required minimum distributions from a qualified annuity after
you reach age 70 1/2 (for those amounts required to be
distributed from this annuity only);
o contracts settled using an annuity payout plan; and
o death benefits.
Possible group reductions: In some cases lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the contract administrative and withdrawal charges. However, we
expect this to occur infrequently.
Valuing your investment
Here is how your fixed account and variable subaccounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments and transfer amounts plus interest earned, less any
amounts withdrawn or transferred and any contract administrative
charge.
<PAGE>
PAGE 25
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 subaccount. Conversely, each
time you take a partial withdrawal, 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, after deduction of any
premium taxes, 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 and the variable account administrative
charge 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 withdrawals;
o withdrawal charges; and/or
o contract administrative charges.
<PAGE>
PAGE 26
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;
o mortality and expense risk fees; and/or
o variable account administrative charges.
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. For specific
features contact your agent.
<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 18 5.56
Mar 100 17 5.88
you automatically Apr 100 15 6.67
buy more units
when the per unit May 100 16 6.25
market price is low....
Jun 100 18 5.56
Jul 100 17 5.88
Aug 100 19 5.26
and fewer units Sep 100 21 4.76
when the per unit
market price is Oct 100 20 5.00
high.
</TABLE>
You have paid an average price of only $17.91 per unit over the 10
months, while the average market price actually was $18.10.
Dollar-cost averaging does not guarantee that any variable
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.
* Some restrictions may apply.
<PAGE>
PAGE 27
Transferring money between subaccounts
You may transfer money from any one subaccount, or the fixed
account, to another before the annuity payouts begin. Certain
restrictions apply to transfers involving the fixed account. If we
receive your request before the close of business, we will process
it that day. Requests received after the close of business will be
processed the next business day. There is no charge for transfers.
Before making a transfer, you should consider the risks involved in
switching investments.
We may suspend or modify transfer privileges at any time. The
right to transfer contract values between the subaccounts is
subject to modification if we determine, in our sole discretion,
that the exercise of that right by one or more contract owners is,
or would be, to the disadvantage of other contract owners. Any
modification could be applied to transfers to or from some or all
of the subaccounts. These modifications could include, but not be
limited to, the requirement of a minimum time period between each
transfer, not accepting transfer requests of an agent acting under
a power of attorney on behalf of more than one contract owner or
limiting the dollar amount that may be transferred between the
subaccounts and the fixed account by a contract owner at any one
time. We may apply these modifications or restrictions in any
manner reasonably designed to prevent any use of the transfer right
we consider to be to the disadvantage of other contract owners.
(For information on transfers after annuity payouts begin, see "The
annuity payout period.")
Transfer policies
o You may transfer contract values between the variable
subaccounts or from the subaccount(s) to the fixed account at
any time. However, if you have made a transfer from the fixed
account to the subaccount(s), you may not make a transfer from
any subaccount back to the fixed account for six months
following that transfer.
o You may transfer contract values from the fixed account to the
variable subaccount(s) on or within 30 days before or after
the contract anniversary (except for automated transfers,
which can be set up for transfer periods of your choosing
subject to certain minimums).
o If we receive your request on or within 30 days before or
after the contract anniversary date, the transfer from the
fixed account to the variable subaccount(s) will be effective
on the day we receive it.
o We will not accept requests for transfers from the fixed
account at any other time.
o Once annuity payouts begin no transfers may be made to or from
the fixed account, but transfers may be made once per contract
year among the variable subaccounts.
<PAGE>
PAGE 28
Two ways to request a transfer or a withdrawal
1 By letter
Send your name, account number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or
withdrawal to:
Regular mail:
American Centurion Life Assurance Company
20 Madison Avenue Extension
Albany, NY 12203
Express mail:
American Centurion Life Assurance Company
P.O. Box 5555
Albany, NY 12205-0555
Minimum amount
Mail transfers: $500 or entire variable subaccount or fixed
account balance
Mail withdrawals: $500 or entire variable subaccount or fixed
account balance
Maximum amount
Mail transfers: Contract value
Mail withdrawals: Contract value
2 By automated transfers and automated partial withdrawals
Your agent can help you set up automated transfers among your
accounts or partial withdrawals from the accounts.
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 may not exceed an amount that, if
continued, would deplete the fixed account or subaccount(s)
from which you are transferring within 24 months.
o Automated transfers and automated partial withdrawals are
subject to all of the contract provisions and terms, including
transfer of contract values between accounts. Automated
withdrawals may be restricted by applicable law under some
contracts.
o Automated partial withdrawals may result in IRS taxes and
penalties on all or part of the amount withdrawn.
Minimum amount
Automated transfers or withdrawals: $100 monthly/$250 quarterly
Maximum amount
Automated transfers or withdrawals: Contract value (except for
automated transfers from
the fixed account)
<PAGE>
PAGE 29
Withdrawals from your contract
As owner, you may withdraw all or part of your contract at any time
before annuity payouts begin by sending a written request to
American Centurion Life. For total withdrawals 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 withdrawal charges (see "Withdrawal charge") and IRS taxes
and penalties (see "Taxes"). No withdrawals may be made after
annuity payouts begin.
Withdrawal policies
If you have a balance in more than one account and request a
partial withdrawal, we will withdraw 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 withdrawal
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 withdrawal 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.
Changing ownership
You may change ownership of your nonqualified annuity at any time
by filing a change of ownership on a form approved by us and sent
to our Albany home 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. <PAGE>
PAGE 30
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 as follows:
For contracts where both the owner and annuitant were 75 or younger
on the date the contract was issued and if all withdrawals you have
made from this contract have been without withdrawal charges, the
beneficiary receives the greater of:
1. the contract value; or
2. the total purchase payments paid less any amounts withdrawn;
or
3. on or after the fifth contract anniversary, the death benefit
as of the most recent fifth contract anniversary adjusted by
adding any purchase payments made since that most recent fifth
contract anniversary and by subtracting any amounts withdrawn
since that most recent fifth contract anniversary.
For contracts where both the owner and annuitant were 75 or younger
on the date the contract was issued and you have made withdrawals
subject to withdrawal charges, the beneficiary receives the
contract value.
For contracts where either the owner or annuitant were 76 or older
on the date the contract was issued, the beneficiary receives the
contract value.
If your spouse is sole beneficiary under a nonqualified annuity and
you die before the retirement 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 annuity
payouts begin, and the spouse is the only beneficiary, the spouse
may keep the annuity as owner until the date on which the spouse
reaches age 70 1/2 or such other date permitted by the Code. To do
this, the spouse must give us written instructions within 60 days
after we receive proof of death.
Payments: 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;
<PAGE>
PAGE 31
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.
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 retirement 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 retirement date. No withdrawal charges are deducted
under the payout plans listed below.
You also decide whether annuity payouts are to be made on a fixed
or variable basis, or a combination of fixed and variable. Amounts
of fixed and variable 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; and
o the amounts you allocated to the account(s) at settlement.
In addition, for variable payouts only, amounts depend on the
investment performance of the subaccount(s) you select. These
payouts will vary from month to month because the performance of
the underlying mutual funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)
For information with respect to transfers between accounts after
annuity payouts begin, see "Transfer policies."
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 <PAGE>
PAGE 32
payout period is calculated from the retirement 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 while both the annuitant and a joint
annuitant 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.
o Plan E - Payouts for a specified period (available as a fixed
payout only): 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 retirement 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 or to change the
frequency of the payouts.
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.
<PAGE>
PAGE 33
Taxes
Generally, under current law, any increase in your contract value
is taxable to you only when you receive a payout or withdrawal.
(However, see detailed discussion below.) Any portion of the
annuity payouts and any withdrawals 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.
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 or your employer 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.
Withdrawals: If you withdraw part or all of your contract before
your annuity payouts begin, your withdrawal payment will be taxed
to the extent that the value of your contract immediately before
the withdrawal exceeds your investment. You also may have to pay a
10% IRS penalty for withdrawals before reaching age 59 1/2. For
qualified annuities, other penalties may apply if you make
withdrawals from 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 income will continue to 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;
<PAGE>
PAGE 34
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 make withdrawals from 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
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 full withdrawal) 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.
The state also imposes 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 withdrawal 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
withdrawal.
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. <PAGE>
PAGE 35
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax advisor if you have any questions about taxation of your
contract.
Tax qualification
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 contract owner with investments in the variable subaccount(s),
you may vote on important mutual fund policies until annuity
payouts begin. Once they begin, the person receiving them has
voting rights. We will vote fund shares according to the
instructions of the person with voting rights.
Before annuity payouts begin, 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.
After annuity payouts begin, the number of votes you have is equal
to:
o the reserve held in each subaccount for your contract, divided
by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the contract decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each account. 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 <PAGE>
PAGE 36
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 department. American Centurion Life will notify owners
of any substitution or change.
Distribution of the contracts
The contracts will be distributed by banks and financial
institutions either directly or through a network of third-party
marketers. American Express Financial Advisors Inc., the principal
underwriter for the variable account, will pay commissions for the
distribution of the contracts to the broker-dealers of the banks or
financial institutions or the broker-dealers of the third-party
marketers who have entered into distribution agreements with
American Express Financial Advisors. These commissions will not be
more than 7% of purchase payments received on the contracts.
From time to time, American Centurion Life may pay or permit other
promotional incentives, in cash or credit or other compensation.
About American Centurion Life
The ACL Personal PortfolioSM is issued by American Centurion Life.
American Centurion Life is a wholly owned subsidiary of IDS Life,
which is a wholly owned subsidiary of AEFC. AEFC is a wholly owned
subsidiary of American Express Company. American Express Company
is a financial services company principally engaged through
subsidiaries (in addition to AEFC) in travel related services,
investment services and international banking services.
American Centurion Life is a stock life insurance company organized
in 1969 under the laws of the state of New York. Its home office
is located at 20 Madison Avenue Extension, P.O. Box 5555, Albany,
NY 12205-0555. American Centurion Life is licensed in the states
of Alabama, Delaware, and New York and conducts a conventional life
insurance business in New York.
American Express Financial Advisors Inc. is the principal
underwriter for the variable account. Its home office is IDS Tower
10, Minneapolis, MN 55440-0010. American Express Financial
Advisors 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 is a wholly owned subsidiary of AEFC.
The AEFC family of companies offers not only insurance and
annuities, but also mutual funds, investment certificates and a
broad range of financial management services.
<PAGE>
PAGE 37
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 38
Table of contents of the Statement of Additional Information
Performance information...............................
Calculating annuity payouts...........................
Rating agencies.......................................
Principal underwriter.................................
Independent auditors..................................
Saving for retirement.................................
Prospectus............................................
Financial statements -
American Centurion Life Assurance
Company..........................................
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
____ ACL Personal PortfolioSM
____ IDS Life Retirement Annuity Mutual Funds
____ The OCC Accumulation Trust
____ The Putnam Variable Trust
____ GT Global Variable Investment Funds
Mail your request to:
American Centurion Life Assurance Company
P.O. Box 5555
Albany, NY 12205-0555
American Centurion Life will mail your request to:
Your name _____________________________________________________
Address _______________________________________________________
City __________________________ State ____________ Zip ________
<PAGE>
PAGE 39
STATEMENT OF ADDITIONAL INFORMATION
for
ACL PERSONAL PORTFOLIOSM
ACL VARIABLE ANNUITY ACCOUNT 2
_______________, 1997
ACL Variable Annuity Account 2 is a separate account established
and maintained by American Centurion Life Assurance Company
(American Centurion Life).
This Statement of Additional Information (SAI), dated ____________,
1997 is not a prospectus. It should be read together with the
account's prospectus, dated ___________, 1997 which may be obtained
from your agent, or by writing or calling American Centurion Life
at the address or telephone number below.
American Centurion Life Assurance Company
20 Madison Avenue Extension
P.O. Box 5555
Albany, NY 12205-0555
1-800-504-0469
<PAGE>
PAGE 40
TABLE OF CONTENTS
Performance Information.......................................p.
Calculating Annuity Payouts...................................p.
Rating Agencies...............................................p.
Principal Underwriter.........................................p.
Independent Auditors..........................................p.
Saving for Retirement.........................................p.
Prospectus....................................................p.
Financial Statements
- American Centurion Life Assurance Company..............p.
<PAGE>
PAGE 41
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 ______________________, which it was not. Performance
figures are calculated on the basis of historical performance of
the funds. Before the subaccounts began investing in these funds,
the figures show what the subaccount performance would have been if
these subaccounts had existed during the illustrated periods. Once
these subaccounts began investing in these funds, actual values are
used for the calculations.
Calculation of Yield for the IDS Life Moneyshare Fund Subaccount
Simple yield for the subaccount investing in the IDS Life
Moneyshare Fund 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).
The value of the hypothetical subaccount includes the amount of any
declared dividends, the value of any shares purchased with any
dividend paid during the period and any dividends declared for such
shares. The variable subaccount's yield does not include any
realized or unrealized gains or losses, nor does it include the
effect of any applicable surrender charge.
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:
365/7
Compound Yield =[(Base Period Return + 1) ]-1
Annualized Yields based on Seven-Day Period ended
Sept. 30, 1996
Subaccount investing in: Simple Yield Compound Yield
IDS Life Moneyshare Fund 4.90% 5.02%
Calculation of Yield for the IDS Life Special Income Fund
Subaccount
For the subaccount investing in the IDS Life Special Income Fund
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:<PAGE>
PAGE 42
YIELD = 2[(a-b + 1)6 - 1]
cd
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.
Annualized yield based on 30-Day Period ended Sept. 30, 1996
Subaccount investing in: Yield
IDS Life Special Income 6.53%
Calculation of Average Annual Total Return
Quotations of average annual total return for any subaccount will
be expressed in terms of the average annual annuity compounded rate
of return of a hypothetical investment in the contract over a
period of one, five and ten years (or, if less, up to the life of
the account), 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).
Subaccount average annual total return figures reflect the
deduction of the contract administrative charge, variable account
administrative charge and mortality and expense risk fee.
Performance figures will be shown with the deduction of the
applicable withdrawal charge.
<PAGE>
PAGE 43
Average Annual Total Return For Period Ended Sept. 30, 1996
<TABLE>
<CAPTION>
Average Annual Total Return with Withdrawal
Since
Subaccount investing in: 1 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C>
IDS LIFE
Aggressive Growth Fund (1/92)* 3.94% --% --% 10.00%
Capital Resource Fund (10/81) 0.29 8.72 11.85 --
International Equity Fund (1/92) 2.28 -- -- 7.51
Managed Fund (4/86) 6.24 9.49 10.61 --
Moneyshare Fund (10/81) -2.99 2.07 3.85 --
Special Income Fund (10/81) -0.27 7.78 7.35 --
Since
1 Year 5 Year 10 Year Inception
OCC ACCUMULATION TRUST 10.64 17.29 -- 18.08
Managed Portfolio (8/88)
GT GLOBAL
Variable Latin America Fund (2/93) 4.10 -- -- 7.67
Variable New Pacific Fund (2/93) 13.71 -- -- 6.08
Putnam VT
New Opportunities Fund (5/94) 1.60 -- -- 3.96
Growth & Income Fund (12/87) 10.95 12.71 -- 13.37
High Yield Fund (12/87) 4.91 12.22 -- 10.98
Diversified Income Fund (7/93) 16.37 -- -- 26.65
Average Annual Total Return without Withdrawal
Since
Subaccount Investing in: 1 Year 5 Year 10 Year Inception
IDS Life
Aggressive Growth Fund (1/92) 10.94% --% --% 10.45%
Capital Resource Fund (10/81) 7.09 9.00 11.85 --
International Equity Fund (1/92) 9.23 -- -- 8.00
Managed Fund (4/86) 13.24 9.77 10.61 --
Moneyshare Fund (10/81) 3.56 2.44 3.85 --
Special Income Fund (10/81) 6.48 8.07 7.35 --
OCC ACCUMULATION TRUST
Managed Portfolio (8/88) 17.64 17.50 -- 18.08
GT GLOBAL
Variable Latin America (2/93) 11.10 -- -- 8.58
Variable New Pacific Fund (2/93) 20.71 -- -- 7.03
Putnam VT
New Opportunities Fund (5/94) 8.49 -- -- 5.11
Growth & Income Fund (12/87) 17.95 12.96 -- 13.37
High Yield Fund (12/87) 11.91 12.47 -- 10.98
Diversified Income Fund (7/93) 23.37 -- -- 28.20
*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
<PAGE>
PAGE 44
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).
The Securities and Exchange Commission (SEC) requires that an
assumption be made that the contract owner withdraws 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. In addition, performance figures may be
shown without the deduction of a withdrawal charge.
Subaccount total return figures reflect the deduction of the
contract administrative charge and mortality and expense risk fee.
Performance of the subaccount 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, CDA Technologies, 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, Morningstar, Mutual Fund Forecaster, Newsweek, The
New York Times, Personal Investor, Stanger Report, Sylvia Porter's
Personal Finance, USA Today, U.S. News & World Report, The Wall
Street Journal and Wiesenberger Investment Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
subaccounts of the variable account. The separate monthly payouts,
added together, make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date.
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your subaccount is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
subaccount is fixed. The value of the units fluctuates with the
performance of the underlying mutual fund.
<PAGE>
PAGE 45
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of contract value according to the age and,
when applicable, the sex of the annuitant. (Where required by law,
we will use a unisex table of settlement rates.) The table assumes
that the contract value is invested at the beginning of the annuity
payout period and earns a 5% rate of return, which is reinvested
and helps to support future payouts.
Annuity Unit Values: This value was originally set at $1 for each
subaccount. To calculate later value we multiply the last annuity
value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
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 net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable subaccount.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement 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; and
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 <PAGE>
PAGE 46
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 ACL Personal PortfolioSM. 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 variable accounts is American
Express Financial Advisors Inc. which offers the variable contracts
on a continuous basis.
INDEPENDENT AUDITORS
The statutory basis financial statements of American Centurion Life
Assurance Company (a wholly owned subsidiary of IDS Life Insurance
Company) as of December 31, 1995 and 1994, and for the years then
ended, have been audited by Ernst & Young LLP, independent auditors
as stated in their report appearing herein.
SAVING FOR RETIREMENT
You may have to save more for retirement because the average person
lives 17 years in retirement. Social security and pensions will
not cover your expenses in retirement. Sixty cents of every
retirement dollar must come from your personal savings.
Sources: Social Security Administration, U.S. Department of Health
and Human Services.
PROSPECTUS
The prospectus dated _____________, 1997, is hereby incorporated in
this SAI by reference.
<PAGE>
PAGE 47
Report of Independent Auditors
The Board of Directors
American Centurion Life Assurance Company
We have audited the accompanying statutory basis balance sheets of
American Centurion Life Assurance Company as of December 31, 1995
and 1994, and the related statutory basis statements of operations,
changes in capital and surplus, and cash flows for the years then
ended. These financial statements are the responsibility of the
Company's management. Our responsibility is to express an opinion
on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
The Company presents its financial statements in conformity with
accounting practices prescribed or permitted by the New York
Insurance Department. The variances between such practices and
generally accepted accounting principles are described in Note 1.
The effects of these variances are not reasonably determinable but
we believe they are material.
In our opinion, because of the materiality of the effects of the
variances between generally accepted accounting principles and the
accounting practices referred to in the preceding paragraph, the
financial statements referred to above are not intended to and do
not present fairly, in conformity with generally accepted
accounting principles, the financial position of American Centurion
Life Assurance Company at December 31, 1995 and 1994, or the
results of its operations or its cash flows for the years then
ended.
Also, in our opinion, the financial statements referred to above
present fairly, in all material respects, the admitted assets,
liabilities and capital and surplus of American Centurion Life
Assurance Company at December 31, 1995 and 1994, and the results of
its operations and its cash flows for the years then ended, in
conformity with accounting practices prescribed or permitted by the
New York Insurance Department.
Ernst & Young LLP
May 3, 1996
Minneapolis, Minnesota
<PAGE>
PAGE 48
American Centurion Life Assurance Company
a wholly owned subsidiary of IDS Life Insurance Company
The financial statements shown below are those of the insurance
company and not those of any other entity. They are included in
the prospectus for the purpose of informing investors as to the
financial condition of the insurance company and its ability to
carry out its obligations under its variable contracts.
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Balance Sheets - Statutory Basis
<TABLE>
<CAPTION>
Dec. 31,
1995 1994
(thousands)
Admitted Assets
<S> <C> <C>
Bonds (Market: 1995, $109,181; 1994, $90,330) $106,810 $91,404
Cash and short-term investments 4,840 4,323
Total cash and invested assets 111,650 95,727
Accrued investment income 1,500 1,230
Receivable from affiliates 85 1,118
Other assets - 6
Total admitted assets $113,235 $98,081
Liabilities and Capital and Surplus
Liabilities:
Future policy benefits for annuities $ 92,315 $79,089
Future policy benefits for life insurance 176 180
Unpaid claims 225 240
Interest maintenance reserve 110 64
Accrued taxes, licenses and fees 654 159
Accrued expenses and other liabilities 3,620 2,417
Asset valuation reserve 864 705
Total liabilities 97,964 82,854
Capital and surplus (Note 4):
Capital stock, $10 par value per share;
100,000 shares authorized, issued and outstanding 1,000 1,000
Additional paid-in capital 6,600 6,600
Unassigned surplus 7,671 7,627
Total capital and surplus 15,271 15,227
Total liabilities and capital and surplus $113,235 $98,081
See accompanying notes.
<PAGE>
PAGE 49
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Statements of Operations - Statutory Basis
Years ended Dec. 31,
1995 1994
(thousands)
Revenues:
Annuity considerations $20,799 $19,055
Net investment income (Note 2) 7,694 6,427
Amortization of interest maintenance reserve 19 23
Other - 41
Total revenues 28,512 25,546
Benefits and expenses:
Annuity and other contract benefits 12,491 9,524
Increase in liabilities for future policy benefits 13,204 13,568
Commissions - 202
General insurance expenses 1,340 1,136
Insurance taxes, licenses and fees, excluding
federal income taxes 62 155
Total benefits and expenses 27,097 24,585
Net gain from operations before federal
income taxes and realized capital losses 1,415 961
Federal income taxes (Note 3) 1,167 110
Net gain from operations before realized
capital gain (loss) 248 851
Net realized capital gain (loss)(Note 2) - -
Net income $ 248 $ 851
See accompanying notes.
<PAGE>
PAGE 50
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Statements of Changes in Capital and Surplus -
Statutory Basis
Years ended Dec. 31,
1995 1994
(thousands)
Capital and surplus at beginning of year $15,227 $14,536
Net income 248 851
Change in non-admitted assets (44) -
Increase in asset valuation reserve (160) (160)
Capital and surplus at end of year $15,271 $15,227
See accompanying notes.
<PAGE>
PAGE 51
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Statements of Cash Flows - Statutory Basis
Years ended Dec. 31,
1995 1994
(thousands)
Annuity considerations $ 20,799 $ 19,055
Net investment income received, excluding
realized gains and losses 7,539 6,476
Other income 6 59
Contract benefits paid (12,506) (9,784)
Commissions, other expenses and taxes paid,
excluding federal incomes taxes (1,541) (981)
Federal income taxes refunded (paid) (561) 945
Net cash provided by operations 13,736 15,770
Proceeds from bonds sold, matured or repaid 8,863 13,926
Tax on capital gains (41) 10
Cost of bonds acquired (24,270) (26,924)
Other sources (uses) 2,229 (985)
Net increase in cash and short-term investments 517 1,797
Cash and short-term investments at beginning of year 4,323 2,526
Cash and short-term investments at end of year $ 4,840 $ 4,323
See accompanying notes.
</TABLE>
<PAGE>
PAGE 52
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Notes to Financial Statements - Statutory Basis ($ Thousands)
1. Summary of significant accounting policies
Nature of business
American Centurion Life Assurance Company (the Company) issues
direct business consisting primarily of single and installment
premium annuity contracts sold to American Express cardmembers
residing in New York. The Company is licensed to transact
insurance business in New York, Alabama and Delaware at Dec.
31, 1995.
The Company's principal annuity product in terms of amount in
force is the installment premium fixed deferred annuity. The
annuity contract guarantees a minimum interest rate during the
accumulation period (the time before annuity payments begin),
although the Company normally pays a higher rate reflective of
current market rates. The fixed annuity provides for a
surrender charge during the first seven to eight years of the
contract. The Company has also adopted a practice whereby the
higher current rate is guaranteed for a specified period.
Basis of presentation
Effective Jan. 1, 1995, all of the Company's issued and
outstanding stock was dividended by AMEX Life Assurance
Company to American Express Company and then, through a
capital contribution of the net surplus of $15,227,
transferred to IDS Life Insurance Company.
The Company is now a wholly owned subsidiary of IDS Life
Insurance Company (IDS Life), which is a wholly owned
subsidiary of American Express Financial Corporation.
American Express Financial Corporation is a wholly owned
subsidiary of American Express Company. The accompanying
financial statements have been prepared on the basis of
accounting practices prescribed or permitted by the New York
Department of Insurance. Such practices vary from generally
accepted accounting principles for stock life insurance
companies primarily as follows:
-Bonds are carried at cost rather than being classified as
"available for sale" or "held to maturity" and carried at fair
value or cost, respectively.
-Policy acquisition costs, such as commissions and other costs
related to acquiring new business, are expensed in the year
incurred, whereas premiums are recognized over the premium
paying period.
-Reserves for future policy benefits on annuity policies are
based on assumptions recognized by the New York Department of
Insurance rather than the Company's expected mortality,
interest and withdrawals.<PAGE>
PAGE 53
1. Summary of significant accounting policies (continued)
-The asset valuation reserve is reported as a liability rather
than as surplus. Changes in this reserve are reported
directly in unassigned surplus.
-Deferred income taxes are not provided for the effects of
temporary differences in reporting income for financial and
income tax purposes.
-Net realized gains or losses resulting from changes in market
interest rates are deferred and amortized to investment income
in future periods.
-Net unrealized gain or loss in the carrying value of bonds is
reflected directly in unassigned surplus.
The preparation of statutory-basis financial statements
requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues
and expenses during the reporting period. Actual results
could differ from those estimates.
Investments
Investment values have been determined in accordance with
methods adopted by the National Association of Insurance
Commissioners (NAIC). Bonds not backed by other loans are
carried at amortized cost with premiums or discounts amortized
using the scientific amoritzation method. Pass-through loan-
backed bonds and structured securities are carried at
amortized cost using the scientific amoritzation method and
include anticipated prepayments at the date of purchase.
Significant changes in estimated cash flows and changes in
coupon interest cash flows from original purchase assumptions
are accounted for using the prospective method for structured
securites purchased at a significant premium over par value,
adjusted rate pass-through loan-backed bonds and adjustable
rate structured securities. The retrospective method is used
for all other pass-through loan-backed bonds and structured
securities. When evidence indicates a decline, which is other
than temporary, in the underlying value or earning power of
individual investments, such investments are written down to a
new cost basis by a charge to income.
Realized investment gain or loss is determined on an
identified cost basis.
Statements of cash flows
The Company considers investments with a maturity at the date
of their acquisition of three months or less to be short-term
investments. These investments are carried principally at
amortized cost which approximates market value. Short-term<PAGE>
PAGE 54
1. Summary of significant accounting policies (continued)
investments at Dec. 31, 1995 and 1994 amounted to $2,388 and
$4,391, respectively, and have been included in the caption
cash and short-term investments.
Premium revenue
Annuity considerations and deposit-type funds are recognized
as revenue when received.
Liabilities for future policy benefits
Liabilities for single and installment premium deferred
annuities are greater than or equal to reserves based on the
Commissioners Annuity Reserve Valuation Method at interest
rates ranging from 5.25 percent to 6.75 percent. Liabilities
for fixed annuities in a benefit status are based on the 1983a
Table with an interest rate of 6.25%.
Federal income taxes
The Company is included in the consolidated federal income tax
return of American Express Company. The Company provides for
income taxes on a separate return basis, except that, under an
agreement between American Express Financial Corporation and
American Express Company, tax benefit is recognized for losses
to the extent they can be used in the consolidated tax return.
It is the policy of American Express Financial Corporation and
its subsidiaries that American Express Financial Corporation
will reimburse a subsidiary for any tax benefit.
At Dec. 31, 1995 and 1994, included in accrued taxes, licenses
and fees is $624 and $24, respectively, ultimately payable to
American Express Company for federal income taxes.
2. Investments
Market values of investments have been determined as
prescribed by the NAIC.
Changes in net unrealized appreciation (depreciation) of bonds
for the years ended Dec. 31, 1995 and 1994 were $3,445 and
($2,987), respectively.
Net realized capital gains (losses) for the years ended Dec.
31 are summarized as follows:
1995 1994
Gains (losses) on bonds $101 $(30)
Income tax benefit (expense) (36) 10
65 (20)
Net (gains) losses transferred to
interest maintenance reserve (65) 20
$ - $ -<PAGE>
PAGE 55
2. Investments (continued)
The Company uses the group method of amortization for interest
related gains and losses arising from the sale of fixed income
investments in bonds, notes and debentures, loan-backed bonds
and structured securities.
The amortized cost and market value of investments in bonds
carried at amortized cost at Dec. 31, are as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
1995
<S> <C> <C> <C> <C>
U.S. Government $ 6,759 $ - $ - $ 6,759
Political subdivisions 997 148 - 1,145
Special revenue 34,485 - - 34,485
Public utilities 8,224 268 33 8,459
Industrial and miscellaneous 56,345 1,994 6 58,333
$106,810 $2,410 $ 39 $109,181
Gross Gross
Amortized Unrealized Unrealized Market
Cost Gains Losses Value
1994
U.S. Government $ 3,702 $ - $ 126 $ 3,576
Political subdivisions 997 33 - 1,030
Special revenue 38,214 - - 38,214
Public utilities 6,285 - 525 5,760
Industrial and miscellaneous 42,206 251 707 41,750
$ 91,404 $ 284 $1,358 $ 90,330
</TABLE>
The amortized cost and estimated market value of investments
in bonds at Dec. 31, 1995 by expected maturity are shown below.
Expected maturities may differ from contractual maturities
because borrowers may have the right to call or prepay
obligations with or without call or prepayment penalties.
Estimated
Amortized Market
Cost Value
Due in one year or less $ 9,338 $ 9,545
Due from one to five years 48,693 49,774
Due from five to ten years 38,065 38,910
Due from ten to twenty years 7,549 7,717
Due in more than twenty years 3,165 3,235
$106,810 $109,181
Proceeds from sales of investments in bonds during 1995 and
1994 were $8,863 and $13,926, respectively. During 1995 and
1994, gross gains of $105 and $32, respectively, and gross
losses of $4 and $62, respectively, were realized on those
sales.
At Dec. 31, 1995, bonds carried at $1,134 were on deposit with
the State of New York as required by law.
<PAGE>
PAGE 56
2. Investments (continued)
Net investment income for the years ended Dec. 31 is
summarized as follows:
1995 1994
Bonds $7,561 $6,334
Short-term investments 157 141
Other 21 -
7,739 6,475
Less investments expenses 46 48
$7,693 $6,427
At Dec. 31, 1995, investments in bonds comprised 96 percent of
the Company's total cash and invested assets. Securities are
rated by the Securities Valuation Office of the NAIC except
for approximately $4,002 which are rated by American Express
Financial Corporation internal analysts using criteria similar
to Moody's and Standard & Poor's. As of Dec. 31, 1995,
approximately 96 percent of the bond portfolio was invested in
investment-grade securities.
3. Federal income taxes
The Company qualifies as a life insurance company for federal
income tax purposes. As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.
Statutory income before income taxes differs from taxable
income principally due to the capitalization of certain policy
acquisition expenses and differences between policy and
contract liabilities for tax return and statutory financial
statement purposes.
4. Capital and surplus
Capital and surplus available for distribution as dividends to
parent are limited to the Company's capital and surplus as
determined in accordance with accounting practices prescribed
by state insurance regulatory authorities. All dividends must
be approved by the Department of Insurance of the State of New
York.
The Company is required to maintain minimum capital of $1,000
and minimum surplus of $500.
5. Related party transactions
Charges by affiliates for use of joint facilities and other
services aggregated $105 and $428 for 1995 and 1994,
respectively.
<PAGE>
PAGE 57
6. Reinsurance
The Company has one indemnity reinsurance agreement
involving life insurance which is 100% coinsured. Amounts
ceded under this contract were as follows at Dec. 31:
1995 1994
Policy reserves $ 2,818 $ 3,564
Insurance in force 265,564 297,689
Premiums on reinsurance ceded amounted to $1,397 and $1,374
for the years ended Dec. 31, 1995 and 1994, respectively.
The Company remains contingently liable for all reinsurance
ceded to other companies. This contingent liability would
become an actual liability in the event that an assuming
reinsurer should fail to perform its obligations under its
reinsurance agreement with the Company.
7. Annuity reserves
At Dec. 31, 1995, the Company's annuity reserves that are
subject to discretionary withdrawal (with adjustment), subject
to discretionary withdrawal (without adjustment), and not
subject to discretionary withdrawal provisions are summarized
as follows:
Amount Percent
Subject to discretionary withdrawal:
With market value adjustment $ 1 0.0%
At book value less surrender charge 6,703 7.3
At book value with minimal or no charge
or adjustment 85,527 92.6
Not subject to discretionary withdrawal 85 0.1
Total annuity reserves -- before reinsurance 92,316 100.0%
Less reinsurance 1
Net annuity reserves $92,315
8. Employee benefit plans
The Company participates in the American Express Retirement
Plan. Employer contributions to the plan are based on
participants' age, years of service and total compensation for
the year. Funding of retirement costs for this plan complies
with the applicable minimum funding requirements specified by
ERISA. The Company's share of the total net periodic pension
cost was $nil in 1995 and 1994.
The Company also participates in defined contribution
pension plans of American Express Company which cover all
employees who have met certain employment requirements.
Company contributions to the plans are a percent of either
each employee's eligible compensation or basic contributions.<PAGE>
PAGE 58
8. Employee benefit plans (continued)
The Company participates in defined benefit health care plans
of American Express Financial Corporation that provide health
care and life insurance benefits to retired employees. The
plans include participant contributions and service related
eligibility requirements. Upon retirement, such employees are
considered to have been employees of American Express Financial
Corporation. American Express Financial Corporation expenses
these benefits and allocates the expenses to it subsidiaries.
Accordingly, costs of such benefits to the Company are included
in employee compensation and benefits and cannot be identified on
a separate company basis. At Dec. 31, 1995 and 1994, the total
accumulated post retirement benefit obligation has been recorded
as a liability to American Express Financial Corporation.
9. Fair values of financial instruments
The Company discloses fair value information for most on- and
off-balance sheet financial instruments for which it is
practical to estimate that value. Fair value of life
insurance obligations, receivables and all non-financial
instruments, such as deferred acquisition costs are excluded.
Off-balance sheet intangible assets are also excluded.
Management believes the value of excluded assets is
significant. The fair value of the Company, therefore, cannot
be estimated by aggregating the amounts presented.
<TABLE>
<CAPTION>
1995 1994
Carrying Fair Carrying Fair
Financial Assets Value Value Value Value
<S> <C> <C> <C> <C>
Bonds $106,810 $111,172 $91,404 $87,187
Cash and short-term investments 4,840 4,840 4,323 4,323
Financial Liabilities
Future policy benefits for fixed
annuities 92,230 91,975 79,089 78,870
</TABLE>
At Dec. 31, 1995 and 1994, the carrying value and fair value
of future policy benefits for fixed annuities exclude life
insurance-related contracts carried at $85 and $nil,
respectively. The fair value of these benefits is based on
the status of the annuities at Dec. 31, 1995 and 1994. The
fair value of deferred annuities is estimated as the carrying
amount less applicable surrender charges. The fair value for
annuities in non-life contingent payout status is estimated as
the present value of projected benefit payments at rates
appropriate for contracts issued in 1995 and 1994.
<PAGE>
PAGE 59
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Balance Sheet - Statutory Basis
(Unaudited)
Sept. 30,
1996
(thousands)
Admitted Assets
Bonds (Market: Sept. 30, 1996, $138,560) $130,704
Cash and short-term investments 7,526
Total cash and invested assets 138,230
Accrued investment income 2,048
Receivable from affiliates 9
Other assets --
Total admitted assets $140,287
Liabilities and Capital and Surplus
Liabilities:
Future policy benefits for annuities $120,713
Future policy benefits for life insurance 176
Unpaid claims 225
Interest maintenance reserve 59
Accrued taxes, licenses and fees 84
Accrued expenses and other liabilities 3,458
Asset valuation reserve 1,191
Total liabilities 125,906
Capital and surplus:
Capital stock, $10 par value per share;
100,000 authorized, issued and outstanding 1,000
Additional paid-in capital 6,600
Unassigned surplus 6,780
Total capital and surplus 14,380
Total liabilities and capital and surplus $140,287
See accompanying notes.
<PAGE>
PAGE 60
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Statement of Operations - Statutory Basis
(Unaudited)
Nine month
period ended
Sept. 30, 1996
(thousands)
Revenues:
Annuity considerations $35,634
Net investment income 6,642
Amortization of interest maintenance reserve 6
Other --
Total revenues 42,282
Benefits and expenses:
Annuity and other contract benefits 11,229
Increase in liabilities for future policy benefits 28,398
Commissions 1,097
General insurance expenses 2,537
Insurance taxes, licenses and fees, excluding
federal income taxes 202
Total benefits and expenses 43,463
Net loss from operations before federal income
taxes and net realized capital gain (loss) (1,181)
Federal income taxes (benefit) (622)
Net loss from operations before realized
capital gain (loss) (559)
Net realized capital gain (loss) --
Net loss $ (559)
See accompanying notes.
<PAGE>
PAGE 61
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Statement of Changes in Capital and Surplus - Statutory Basis
(Unaudited)
Nine month
period ended
Sept. 30, 1996
(thousands)
Capital and surplus at beginning of period $15,271
Net loss (559)
Change in non-admitted assets (5)
Increase in asset valuation reserve (327)
Capital and surplus at end of period $14,380
See accompanying notes.
<PAGE>
PAGE 62
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Statement of Cash Flows - Statutory Basis
(Unaudited)
Nine month
period ended
Sept. 30, 1996
(thousands)
Annuity considerations $35,634
Net investment income received, excluding
realized gains and losses 6,147
Other income --
Contract benefits paid (11,229)
Commissions, other expenses and taxes paid,
excluding federal incomes taxes (3,692)
Federal income taxes paid (271)
Net cash provided by operations 26,589
Proceeds from bonds sold, matured or repaid 7,473
Tax on capital gains 5
Cost of bonds acquired (31,488)
Other sources 107
Net increase in cash and short-term investments 2,686
Cash and short-term investments at beginning
of period 4,840
Cash and short-term investments at end of period $ 7,526
See accompanying notes.
<PAGE>
PAGE 63
AMERICAN CENTURION LIFE ASSURANCE COMPANY
Notes to Financial Statements - Statutory Basis
Sept. 30, 1996 ($ Thousands) (Unaudited)
1. General
In the opinion of the management of American Centurion Life
Assurance Company (the Company), the accompanying unaudited
financial statements contain all adjustments (consisting of
normal recurring adjustments) necessary to present fairly its
balance sheet as of Sept. 30, 1996, and the related statements of
operations, changes in capital and surplus, cash flows for the nine
month period ended Sept. 30, 1996.
The 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. The
accompanying financial statements have been prepared on the basis
of accounting practices prescribed or permitted by the New York
Department of Insurance.
2. Nature of business
The Company is a stock life insurance company licensed to transact
insurance business in New York, Alabama and Delaware.
3. Statement of cash flows
The Company considers investments with a maturity at the date of
their acquistion of three months or less to be cash equivalents.
These securities are carried principally at amortized cost
which approximates market value.
<PAGE>
PAGE 64
PART C.
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B of this Registration
Statement:
American Centurion Life Insurance Company:
Balance Sheets as of Dec. 31, 1995 and 1994.
Statements of Operations for the years ended Dec. 31, 1995
1994.
Statements of Changes in Capital and Surplus for the years
ended Dec. 31, 1995 and 1994.
Statements of Cash Flows for the years ended Dec. 31, 1995 and
1994.
Notes to Financial Statements.
Report of Independent Auditors dated May 3, 1996.
Balance Sheet (unaudited) as of Sept. 30, 1996.
Statement of Operations (unaudited) as of Sept. 30, 1996.
Statement of Changes in Capital and Surplus (unaudited) as of
Sept. 30, 1996.
Statement of Cash Flows (unaudited) as of Sept. 30, 1996.
Notes to Financial Statements (unaudited).
(b) Exhibits:
1. Certificate establishing the ACL Variable Annuity Account 2
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 Flexible Payment Deferred Annuity Contract, filed
electronically herewith.
5.1 Application for American Centurion Life Variable Annuity (form
45055), filed electronically herewith.
6.1 Amended and Restated By-Laws of American Centurion Life, filed
electronically herewith.
6.2 Amended and Restated Articles of Incorporation 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.
<PAGE>
PAGE 65
10. Consent of Independent Auditors, is filed electronically
herewith.
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.
14.1 Financial Data Schedule, is filed electronically herewith.
14.2 Power of Attorney to sign this Registration Statement dated
December 22, 1995, filed electronically herewith.
<PAGE>
PAGE 66
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
Norma J. Arnold IDS Tower 10 Director
Minneapolis, MN 55440
Robert C. Auriema IDS Tower 10 Director
Minneapolis, MN 55440
Clarence E. Galston IDS Tower 10 Director
Minneapolis, MN 55440
Morris Goodwin, Jr. IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Jay C. Hatlestad IDS Tower 10 Vice President and Controller
Minneapolis, MN 55440
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 - Investments
Minneapolis, MN 55440
Ryan R. Larson IDS Tower 10 Director and Vice President -
Minneapolis, MN 55440 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 Vice President - Marketing
Minneapolis, MN 55440
Stuart A. Sedlacek IDS Tower 10 Director, Chairman and President
Minneapolis, MN 55440
<PAGE>
PAGE 67
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 Partners Life Insurance 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 Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Corporation Delaware
American Express Financial Advisors Inc. Delaware
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
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
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
<PAGE>
PAGE 68
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 Nevada Inc. Nevada
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
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.<PAGE>
PAGE 69
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-Field None
IDS Tower 10 Compensation and
Minneapolis, MN 55440 Administration
Peter J. Anderson Senior Vice President- Vice
IDS Tower 10 Investments President
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 IDS Institutional
Retirement Services
John M. Baker Vice President- None
Plan Sponsor Services
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
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
<PAGE>
PAGE 70
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
John D. Begley Group Vice President- None
Suite 100 Ohio/Indiana
7760 Olentangy River Rd.
Columbus, OH 43235
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 Technology and
Minneapolis, MN 55440 Development
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
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
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
<PAGE>
PAGE 71
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
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/Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
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
Luz Maria Davis Vice President- None
IDS Tower 10 Communications
Minneapolis, MN 55440
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
<PAGE>
PAGE 72
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
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 Board member
IDS Tower 10 Vice President-
Minneapolis MN 55440 Investment Operations
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
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 Vice President- None
IDS Tower 10 Institutional Products
Minneapolis, MN 55440 Group
Jeffrey P. Fox Vice President and None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
William P. Fritz Group Vice President- None
Suite 160 Northern Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
<PAGE>
PAGE 73
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
Carl W. Gans Group Vice President- None
8500 Tower Suite 1770 Twin City Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
John J. Golden Vice President- None
IDS Tower 10 Human Resources Planning
Minneapolis, MN 55440 and Field Support
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate 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
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
<PAGE>
PAGE 74
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
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
Michael J. Hogan Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
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 Board member
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
James M. Jensen Vice President- None
IDS Tower 10 Life Products
Minneapolis, MN 55440
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 Promotions
Minneapolis, MN 55440
Matthew N. Karstetter Vice President- None
IDS Tower 10 Investment Accounting
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<PAGE>
PAGE 75
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
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
Richard W. Kling Senior Vice President- None
IDS Tower 10 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
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- None
IDS Tower 10 IPG Product Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440<PAGE>
PAGE 76
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
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
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
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-Services None
IDS Tower 10
Minneapolis, MN 55440 <PAGE>
PAGE 77
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
Alan D. Morgenstern Group Vice President- None
Suite 200 Central California/
3500 Market Street Western Nevada
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 Technology Services
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
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<PAGE>
PAGE 78
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
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
Debra J. Rabe Vice President-Financial None
IDS Tower 10 Planning
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-Private None
IDS Tower 10 Client Group
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
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Suite 402
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Suite 201 Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
<PAGE>
PAGE 79
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 G. Scholz Group Vice President- None
Suite 205 Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Assured Assets
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 President- 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
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
<PAGE>
PAGE 80
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
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
Barbara Stroup Stewart Vice President-Corporate None
IDS Tower 10 Reengineering
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- Board member
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Senior Vice President Treasurer
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
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
<PAGE>
PAGE 81
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
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 Tax Research and Audit
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- None
IDS Tower 10 Global Investments
Minneapolis, MN 55440
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
Item 29(c).
<TABLE>
<CAPTION>
Net Underwriting
Name of Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
American Express None None None None
Financial Advisors
Inc.
</TABLE>
<PAGE>
PAGE 82
Item 30. Location of Accounts and Records
American Centurion Life Assurance Company
20 Madison Avenue Extension
Albany, NY 12205-0555
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes that it will 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 contracts may be accepted.
(b) Registrant undertakes that it will 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 or
similar written communication affixed to or included
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 to IDS Life
Contract Owner Service at the address or phone
number listed in the prospectus.
(d) The sponsoring insurance company represents that the
fees and charges deducted under the contract, in the
aggregate, are reasonable in relation to the
services rendered, the expenses expected to be
incurred, and the risks assumed by the insurance
company.
<PAGE>
PAGE 83
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 certifies that it meets requirements of
Securities Act Rule 485 for all effectiveness to this Registration
Statement and has duly caused this Registration Statement to be
signed on its behalf, in the City of Minneapolis, and State of
Minnesota, on the 5th day of February, 1997.
ACL VARIABLE ANNUITY ACCOUNT 2
(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 5th day of February, 1997.
Signature Title
/s/ Stuart A. Sedlacek* Director, Chairman and
Stuart A. Sedlacek President
/s/ Jay C. Hatlestad* Vice President and
Jay C. Hatlestad Controller
/s/ Norman J. Arnold* Director
Norman J. Arnold
/s/ Robert C. Auriema* Director
Robert C. Auriema
_____________________________ Director
Douglas L. Forsberg
/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
<PAGE>
PAGE 84
Signature Title
/s/ Herbert W. Marache Jr.* Director
Herbert W. Marache Jr.
Director
Kenneth W. Nelson
/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.
______________________________
Eric L. Marhoun
<PAGE>
PAGE 85
CONTENTS OF PRE-EFFECTIVE AMENDMENT NO. 1
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.
Financial Statements.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
ACL VARIABLE ANNUITY ACCOUNT 2
File No. 333-00519/811-07511
EXHIBIT INDEX
Exhibit 1: Certificate establishing the ACL Variable Annuity
Account 2 dated December 1, 1995.
Exhibit 4.1: Form of Flexible Payment Deferred Annuity Contract.
Exhibit 5.1: Application for American Centurion Life Variable
Annuity (form 45055).
Exhibit 6.1: Amended and Restated By-Laws of American Centurion
Life.
Exhibit 6.2: Amended and Restated Articles of Incorporation of
American Centurion Life.
Exhibit 6.3: Emergency By-Laws of American Centurion Life.
Exhibit 10: Consent of Independent Auditors.
Exhibit 13: Copy of schedule for computation of each performance
quotation.
Exhibit 14.1: Financial Data Schedule.
Exhibit 14.2: Power of Attorney to sign this Registration Statement
dated December 22, 1995.
<PAGE>
PAGE 1
EXHIBIT 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
Flexible Payment Deferred Annuity Contract
American Centurion Life
A Stock Company
P.O. Box 5555
Albany, New York 12205-0555
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, American Centurion Life
Assurance Company, a Stock Company, Indianapolis, Indiana. PLEASE
READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, we will begin to
pay you monthly annuity payments. Any payments made by us are
subject to the terms of this contract. The owner and beneficiary
are as named in the application unless they are changed as provided
for in this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by American Centurion Life Assurance Company
in Albany, New York, as of the contract date shown below.
ACCUMULATION VALUES, WHEN BASED ON THE INVESTMENT RESULTS OF THE
SEPARATE ACCOUNTS, ARE VARIABLE AND NOT GUARANTEED AS TO FIXED
DOLLAR AMOUNT. SEE PAGE 9 FOR VARIABLE PROVISIONS.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS. If for
any reason you are not satisfied with this contract, return it to
us or our agent within 10 days after you receive it. We will then
cancel this contract and refund all purchase payments which you
have made. This contract will then be considered void from its
start.
President
Secretary
o Flexible Purchase Payments
o Optional Fixed Dollar or Variable Accumulation Values and Annuity
Payments
o Annuity Payments to Begin on the Retirement Date
o This Contract is Nonparticipating - Dividends Are Not Payable
45054 A(11/95)
<PAGE>
PAGE 2
CONTRACT DATA
Upon issuance of this contract your initial purchase payment has
been applied to the fixed and variable accounts as shown below.
You may make additional payments and change the purchase payment
allocation as provided in this contract. Refer to the purchase
payments provision on Page 6.
Purchase Payment
Variable Subaccounts/Funds Allocation Percentage
IDSL Capital Resource 10%
IDSL Special Income 10%
IDSL Moneyshare 10%
IDSL Managed 0%
IDSL International Equity 10%
IDSL Aggressive Growth 10%
OCC Managed 10%
OCC U.S. Gov't. Income 0%
G.T. Global New Pacific 0%
G.T. Global Latin America 0%
PCM New Opportunities 10%
PCM Growth & Income 0%
PCM High Yield 0%
PCM Diversified Income 10%
ACL Fixed Account 20%
Withdrawal Charge: If you withdraw all or a portion of this
contract, a withdrawal charge may apply. A withdrawal charge
applies if all or part of the contract value withdrawn is from
purchase payments received during the contract year of withdrawal
and during the six immediately preceding contract years.
Contract Years
From Payment Receipt Withdrawal Charge
1 7% of purchase payment withdrawn
2 6% of purchase payment withdrawn
3 5% of purchase payment withdrawn
4 4% of purchase payment withdrawn
5 3% of purchase payment withdrawn
6 2% of purchase payment withdrawn
7 1% of purchase payment withdrawn
Thereafter 0% of purchase payment withdrawn
After the first contract year, you may withdraw up to 10 percent of
your prior contract anniversary contract value each contract year
without incurring a withdrawal charge. Refer to the withdrawal
charge provision on Page 11 for additional withdrawal charge
information.
Contract Administrative Charge: See Page 8.
The Maximum Total Contract Purchase Payments (cumulative total all
contract years) is $1,000,000. We reserve the right to increase
this maximum on a uniform basis for all contract owners in a class.
The Guaranteed Minimum Effective Interest Rate to be credited to
the fixed account is 3%.
<PAGE>
PAGE 3
CONTRACT DATA
Contract Number: 9930-SAMPLE
Initial Purchase Payment: $10,000.00
Annuitant: John Doe
Contract Owner: John Doe
Contract Date: January 1, 1996
Retirement Date: January 1, 2026
Contract Type: Non-qualified
45054
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PAGE 4
Contents
Definitions Important words and meanings/Page 2
General Provisions Entire contract; Annuity tax
qualification; Contract modification;
Incontestability; Benefits based on
incorrect data; State laws; Reports
to owner; Evidence of survival;
Protection of proceeds; Payments by
us; Voting rights/Page 3
Ownership and Beneficiary Owner rights; Joint owners; Change of
ownership; Annuitant; Beneficiary;
Change of Beneficiary;
Assignment/Page 4
Payments to Beneficiary Describes options and amounts payable
upon death/Page 5
Purchase Payments Purchase payments amounts; Payment
limits; Allocations of purchase
payments/Page 6
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 7
Fixed and Variable Accounts Describes the fixed account;
Describes the variable subaccounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Variable account
administrative charge; Distribution
charge; Annuity unit value/Page 9
Withdrawal Provisions Contract withdrawal for its
withdrawal value; Rules for
withdrawal; TSA distribution
restrictions/Page 11
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 13
Tables of Settlement Rates Tables showing the amount of the
first variable annuity payment and
the guaranteed fixed annuity payments
for the various payment plans/Page 15
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PAGE 5
Definitions
The following words are used often in this contract. 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 this contract. The owner may be someone other than
the annuitant. The owner is shown in the 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 of measure. It is
used to calculate the contract value prior to settlement.
Annuity Unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable account
on and after the retirement date.
Contract Date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
Contract Anniversary
The same day and month as the contract date each year that the
contract remains in force.
Contract Value
The sum of the: (1) Fixed Account Contract Value; and (2) Variable
Account Contract Value.
Retirement Date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
Settlement
The application of the contract value of this contract 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.
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PAGE 6
Fixed Account
The fixed account is made up of all our assets other than those in
any separate account.
Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts. Each subaccount is named under
Contract Data.
Fixed Annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
Variable Annuity
A variable annuity is an annuity with payments which are not
predetermined or guaranteed as to dollar amount and vary in amount
with the investment experience of one or more of the variable
subaccounts.
Written Request
A request in writing signed by you and delivered to us at our
administrative 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.
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PAGE 7
General Provisions
Entire Contract
This contract form, any endorsements and the copy of the
application attached to it are the entire contract between you and
us.
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.
Annuity Tax Qualification
This contract is intended to qualify as an annuity contract under
Section 72 of the Code for federal income tax purposes. To that
end, the provisions of this contract are to be interpreted to
ensure or maintain such tax-qualification, notwithstanding any
other provisions to the contrary.
Contract Modification
We reserve the right to modify this contract to the extent
necessary to qualify this contract as an annuity contract under
Section 72 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 any regulatory authority for the
modifications and will provide you with notice and copy of such
change.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
Payments under the contract will be based on the annuitant's
birthdate and sex. If the annuitant's birthdate or sex has been
misstated, payments under this contract will be adjusted. They
will be based on what would have been provided at the correct
birthdate and sex. Any underpayments made by us will be made up
immediately with an interest credit of 6% per year. Any
overpayments made by us will be subtracted from the future payments
together with an interest charge of 6% per year.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state. Any paid up annuity, cash
withdrawal or death benefits available under the contract are not
less than the minimum benefits required by any statute of the state
in which the contract is delivered.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash withdrawal value of this contract.
This statement will be based on any laws or regulations that apply
to contracts of this type.
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PAGE 8
Evidence of Survival
Where any payments under this contract 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 the payments.
Protection of Proceeds
Payments under this contract 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
payment of a variable annuity or withdrawal based on the
variable contract value shall be payable only from the variable
account.
Voting Rights
So long as federal law requires, we will give certain voting
rights to contractowners. As contractowner, 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.
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PAGE 9
Ownership and Beneficiary
Owner Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us.
Joint Owners
All joint owners must sign all ownership requests. Joint owners
must designate one address to which all communications are to be
sent. The death benefit described on Page 5 will be paid to the
beneficiary at the death of the first joint owner to die.
For joint spousal ownerships, the surviving spouse is deemed the
sole beneficiary superseding any other beneficiary designation.
This permits the surviving spouse the use of the spousal
continuation at death described on Page 5. The deemed surviving
spouse sole beneficiary may be overridden if specifically requested
in writing signed by both joint spousal owners.
Change of Ownership
You may change the ownership.
Any change of ownership 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 recorded 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 recording.
Annuitant
The annuitant is the person you named in the application. The only
permitted change of annuitant is to an eligible surviving spouse
electing spousal continuation as described on Page 5.
Beneficiary
Beneficiaries are those you have named in the application or later
changed as provided below, to receive benefits of this contract if
you or the annuitant die while this contract 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 you, if living, otherwise
to your estate.
For joint spousal ownerships, the surviving spouse is deemed the
sole beneficiary superseding any other beneficiary designation.
This permits the surviving spouse the use of the spousal
continuation at death described on Page 5. The deemed surviving
spouse sole beneficiary may be overridden if specifically requested
in writing signed by both joint spousal owners.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
recorded 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
recording.
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PAGE 10
Assignment
You can assign this contract or any interest in it while the
annuitant is living. 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 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.
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PAGE 11
Payments to Beneficiary
Death Benefits Before the Retirement Date
If you or the annuitant die before the retirement date while this
contract is in force, and both you and the annuitant were age 75
or younger on the contract date, and if all withdrawals you have
made from this contract have been without withdrawal charge, we
will pay the beneficiary the greater of:
1. the contract value; or
2. the total purchase payments paid less any amounts withdrawn; or
3. on or after the fifth contract anniversary, the death benefit as
of the most recent fifth contract anniversary adjusted by adding
any purchase payments made since that most recent fifth contract
anniversary and by subtracting any amounts withdrawn since that
most recent fifth contract anniversary.
If you or the annuitant die before the retirement date while this
contract is in force, and both you and the annuitant were age 75 or
younger on the contract date, and you have made withdrawals subject
to withdrawal charge, we will pay the beneficiary the contract
value.
If you or the annuitant die before the retirement date while this
contract is in force, and either you or the annuitant were age 76
or older on the contract date, we will pay the beneficiary the
contract value.
If the annuity is jointly owned, the death benefit described above
will be paid to the beneficiary at the death of the first joint
owner to die. For joint spousal ownerships, the surviving spouse
is deemed the sole beneficiary superseding any other beneficiary
designation. This permits the surviving spouse the use of the
spousal continuation at death described on Page 5. The deemed
surviving spouse sole beneficiary may be overridden if specifically
requested in writing signed by both joint spousal owners.
Federal law requires distribution at the annuitant's death if the
owner is a corporation or other non-individual.
Payment of Death Benefit Before the Retirement Date
The above death benefit will be payable in a lump sum upon the
receipt of due proof of death of you or the annuitant, whichever
first occurs. The beneficiary may elect to receive payment anytime
within five 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
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PAGE 12
3. payments must begin no later than one year after the date of
death.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract 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 Contract
If you die prior to the retirement date and your spouse is the sole
beneficiary or co-owner of the contract, your spouse may keep the
contract in force as owner and may make additional purchase
payments to the contract.
Death After the Retirement Date
If you (the owner) die while payments are being made under an
Annuity Payment Plan, those payments will continue according to the
plan you chose.
If the annuitant dies while payments are being made under an
Annuity Payment Plan, those payments will end unless the plan you
chose calls for payments to continue after the annuitant's death.
If you chose Annuity Payment Plan B, C or E (see Annuity Payment
Plans on Page 13), any remaining guaranteed payments will be
continued to your beneficiary, if living; if not, to you, if
living; if not, to your estate.
<PAGE>
PAGE 13
Purchase Payments
Purchase Payments
Purchase payments are the payments you make for this contract 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 payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Additional Purchase Payments
Additional purchase payments may be made until the earlier of:
1. the date this contract terminates by withdrawal or otherwise; or
2. the date on which annuity payments begin.
Additional purchase payments are subject to the "Payment Limits
Provision" below.
Payment Limits Provision
Maximum Purchase Payments - The maximum total contract purchase
payments may not exceed the amounts shown under Contract Data. We
reserve the right to increase the maximums.
Additional Purchase Payments - You may make additional purchase
payments of at least $500.
All purchase payments must be made in cash. If you die before the
entire interest in this contract 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
contract.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable subaccounts. Your choice for
the fixed account and each variable subaccount may be made in any
whole percent from 0% to 100%. No allocation may be made that
would result in a fixed account or variable subaccount value of
less than $500. Your allocation instructions as of the contract
date are shown under Contract Data.
By written request, or by another method agreed to by us, you may
change your choice of accounts or percentages. Net purchase
payments will be allocated as of the end of the valuation period
during which we receive the payment at our home office.
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PAGE 14
Contract Value
Contract Value
The contract value at any time is the sum of:
1. the Fixed Account Contract Value; and
2. the Variable Account Contract Value.
If: 1. part or all of the contract value is withdrawn; or
2. charges described herein are made against the contract
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 withdrawals, 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 contract value.
Variable Account Contract Value
The variable account contract 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. the value of any units deducted for charges or withdrawals.
Fixed Account Contract Value
The fixed account contract value at any time will be:
1. the sum of all purchase payments allocated to the fixed account,
plus interest credited; plus
2. any amounts transferred to the fixed account from any variable
subaccount, plus interest credited; less
3. any amounts transferred from the fixed account to any variable
subaccount; less
4. any amounts deducted for charges or withdrawals.
Interest to be Credited
We will credit interest to the fixed account contract 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 that we determine from time to time. However, we guarantee
that the rate will not be less than a 3% effective annual interest
rate.
<PAGE>
PAGE 15
Table of Fixed Account Guaranteed
Minimum Values
Per $2,000 Annual Payments
Allocated 100% to the Fixed Account
Based on the 3% Minimum Interest Guarantee
Guaranteed Guaranteed
End of minimum minimum
contract fixed account fixed account
year contract values withdrawal values
1 $ 2,030.00 $ 1,901.90
2 4,120.90 3,866.65
3 6,274.53 5,924.16
4 8,492.76 8,062.19
5 10,777.55 10,282.57
6 13,130.87 12,590.87
7 15,554.80 14,994.85
8 18,051.44 17,491.44
9 20,622.99 20,062.99
10 23,271.68 22,711.68
11 25,999.83 25,439.83
12 28,809.82 28,249.82
13 31,704.11 31,144.11
14 34,685.24 34,125.24
15 37,755.80 37,195.80
16 40,918.47 40,358.47
17 44,176.02 43,616.02
18 47,531.30 46,971.30
19 50,987.24 50,427.24
20 54,546.86 53,986.86
If there are any additional payments, transfers to or from the
variable subaccounts, withdrawals or premium tax adjustments, the
above values will be adjusted as described in this contract.
Variable subaccount contract and withdrawal values are not
guaranteed and cannot be projected.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $30 per year and is deducted from the
contract value at the end of each contract year. The charge
deducted will be prorated among the variable subaccounts and the
fixed account in the same proportion your interest in each bears to
the total contract value.
We waive the annual contract administrative charge for any contract
year where the contract value immediately prior to the deduction of
the contract administrative charge is $50,000 or more.
If you make a full withdrawal of this contract, we deduct the full
$30 contract administrative charge at the time of full withdrawal.
The charge does not apply after settlement of this contract.
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PAGE 16
Premium Tax Charges
A charge will be made by us against the contract value of this
contract for any premium taxes not previously deducted.
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfers of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in one or more
of the variable subaccounts to another one or more of the
variable subaccounts. Subject to item 2, you may also transfer
values held in one or more of the variable subaccounts to the
fixed account.
2. On or within the 30 days before or after a contract anniversary
you may transfer values from the fixed account to one or more
of the variable subaccounts. If such a transfer is made, no
transfers from any variable subaccount to the fixed account may
be made for six months.
You may make a transfer by written request. There is no fee or
charge for these transfers. However, the minimum transfer amount
is $500, or if less, the entire value in the subaccount or in the
fixed account from which the transfer is being made, or other such
minimum amounts agreed to by us.
We reserve the right to modify your right to transfer all or part
of the values held in one or more of the variable subaccounts or
the fixed account to another one or more of the variable
subaccounts or the fixed account if we determine, in our sole
discretion, that the exercise of that right by one or more Contract
Owners is, or would be, to the disadvantage of other Contract
Owners. Modifications could include, but are not limited to, the
requirement of a minimum time period between each transfer, not
accepting transfer requests of an agent acting under power of
attorney on behalf of more than one Contract Owner or limiting the
dollar amount that may be transferred between one or more of the
variable subaccounts and the fixed account at any one time. Such
restrictions may be applied in any manner reasonably designed to
prevent any use of the transfer right which we consider to be to
the disadvantage of other Contract Owners.
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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 which are named under Contract
Data. 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
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 fund shown for that subaccount under
Contract Data or as later added or changed.
We may change the funds the variable subaccounts buy shares from if
laws or regulations change, the existing funds become unavailable
or, in the judgment of American Centurion Life, 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 Contract Data. We may also add additional subaccounts
investing in other funds.
We would first seek approval of the Securities and Exchange
Commission and, where required, the insurance regulator of the
state where this contract is delivered.
Valuation of Assets
Fund 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 is found by adding the number of accumulation units
resulting from:
1. purchase payments allocated to the subaccount; and
2. transfers to the subaccount;
and subtracting the number of accumulation units resulting from:
1. transfers from the subaccount; and
2. withdrawals (including withdrawal charges) from the subaccount;
and
3. contract administrative charge deductions from the subaccount.
The number of accumulation units added or subtracted for each of
the above transactions is found by dividing
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PAGE 18
1. the amount allocated to or deducted from the subaccount; by
2. the accumulation unit value for the subaccount for the
respective valuation period during which we received the
purchase payment or transfer value, or during which we deducted
transfers, withdrawals, withdrawal charges or contract
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 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 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.
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 subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
and (4) from the result. This is done where:
1. is the sum of:
a. the net asset value per share of the 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 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 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.
4. is a factor representing the variable account administrative
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 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. The deduction will be:
1. made from each variable subaccount; and
2. computed on a daily basis.
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PAGE 19
Variable Account Administrative Charge
In calculating accumulation unit values we will deduct a variable
account administrative charge from the variable subaccounts equal,
on an annual basis, to 0.10% of the daily net asset value. This
deduction is made to compensate us for certain administrative and
operating expenses for contracts of this type. The deduction will
be:
1. made from each variable subaccount; and
2. computed on a daily basis
Annuity Unit Value
The value of an annuity unit for each variable account was
arbitrarily set at $1 when the first fund shares were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable account for the last
prior valuation period is multiplied by the net investment
factor for the account for the valuation period for which the
annuity unit value is being calculated.
2. The result is multiplied by an interest factor. This is done to
neutralize the assumed investment rate which is built into the
annuity tables on Page 15.
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PAGE 20
Withdrawal Provisions
Withdrawal
By written request and subject to the rules below you may:
1. withdraw this contract for the total withdrawal value; or
2. partially withdraw this contract for a part of the withdrawal
value.
Rules for Withdrawal
All withdrawals will have the following conditions:
1. You must apply by written request or other method agreed to by
us:
(a) while this contract is in force; and
(b) prior to the earlier of the retirement date or the death of
the annuitant.
2. You must withdraw an amount equal to at least $500. Each
variable subaccount value and the fixed account value after a
partial withdrawal must be either $0 or at least $500.
3. The amount withdrawn, less any charges, will normally be mailed
to you within seven days of the receipt of your written request
and this contract, if required.
For withdrawals from the fixed account, we have the right to
defer payment to you for up to six months from the date we
receive your request.
4. For partial withdrawals, if you do not specify from which
account the withdrawal is to be made, the withdrawal will be
made from the variable subaccounts and the fixed account in the
same proportion as your interest in each bears to the contract
value.
5. Any amounts withdrawn and charges which may apply cannot be
repaid.
Upon withdrawal for the full withdrawal value this contract will
terminate. We may require that you return the contract to us
before we pay the full withdrawal value.
Withdrawal Value
The withdrawal value at any time will be:
1. the contract value;
2. minus the contract administrative charge, prorated based on the
number of days from your last contract anniversary to the date
of full withdrawal;
3. minus any withdrawal charge.
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Withdrawal Charge
If you withdraw all or part of your contract, you may be subject to
a withdrawal charge. A withdrawal charge applies if all or part of
the contract value you withdraw is from new payments. Refer to
"Waiver of Withdrawal Charges" for situations when withdrawal
charges are not deducted.
For the contract year of your withdrawal:
o Old Payments are purchase payments we received in any contract
year six or more years prior to the contract year of withdrawal.
o New Payments are purchase payments we received during the
contract year of withdrawal and during the six immediately
preceding contract years.
We determine your withdrawal charge by multiplying each of your new
payments by the applicable withdrawal charge percentage, and then
summing the total withdrawal charges.
The new payment withdrawal charge percentage depends on the number
of contract years since you made the payment(s):
Contract Years From
Payment Receipt Withdrawal Charge Percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
Waiver of Withdrawal Charges
Withdrawal charges are waived in these situations:
1. After the first contract year, withdrawals during the year
totaling up to 10% of your prior contract anniversary contract
value; and
2. Contract earnings - if any - in excess of the annual 10% free
withdrawal amount; and
3. Settlement payments using an annuity payment plan; and
4. Payments made in the event of the death of the owner or
annuitant.
Withdrawal Order
We use this order to determine withdrawal charges:
1. First, withdrawals up to 10% of your prior anniversary account
value not previously withdrawn during this contract year. (No
withdrawal charge.)
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PAGE 22
2. Next, withdrawals are from contract earnings - if any - in
excess of the annual 10% free withdrawal amount. (No withdrawal
charge.)
3. Next, withdrawals are from old payments not previously
withdrawn. (No withdrawal charge.)
4. Last, withdrawals are from new payments. There is a withdrawal
charge for withdrawals from new payments.
Withdrawal Charge Calculation Example
We determine your withdrawal charge by multiplying each of your new
payments by the applicable withdrawal charge percentages, and then
summing the total withdrawal charges.
For example, the withdrawal charge on a total withdrawal request
for a contract with this history:
o The contract date is July 1, 1995 with a contract year of July 1
through June 30 and with an anniversary date of July 1 each year
o We received these payments - $10,000 July 1, 1995, $8,000
December 31, 2001 and $6,000 February 20, 2003
o The owner withdraws the contract for its total withdrawal value
of $38,101 on August 5, 2005 and had not made any other
withdrawals during that contract year
o The prior anniversary July 1, 2005 contract value was $38,488
is calculated this way:
Withdrawal
Charge Explanation
$ 0 $3,848.80 is 10% of the prior anniversary
account value withdrawn without withdrawal
charge; and
$ 0 $10,252.20 is contract earnings in excess of
the 10% free withdrawal amount withdrawn
without withdrawal charge.
$ 0 $10,000 7-1-95 payment is an old payment
withdrawn without withdrawal charge; and
$240 $8,000 12-31-01 payment is a new payment
in its fifth contract year from receipt,
withdrawn with a 3% withdrawal charge; and
$240 $6,000 2-20-03 payment is a new payment in
its fourth contract year from receipt
____ withdrawn with a 4% withdrawal charge.
$480
Suspension or Delay in Payment of Withdrawal
We have the right to suspend or delay the date of any withdrawal
payment from the variable subaccounts for any period:
<PAGE>
PAGE 23
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
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 24
Annuity Provisions
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. If you select a new date, it
must be at least 30 days after we receive your written request at
our home office.
The maximum retirement date is the annuitant's 85th birthday.
Annuity Payment Plans
Annuity payments may be made on a fixed dollar basis, a variable
basis or a combination of both. 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, 10 or 15 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 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 made
after the death of both the annuitant and joint annuitant.
Plan E - This provides monthly fixed dollar annuity payments for a
period of years. The period of years may be no less than 10 nor
more than 30.
You may select the plan by written request to us at least 30 days
before the retirement date. If at least 30 days before the
retirement date we have not received at our home office your
written request to select a plan, we will make fixed dollar
payments according to Plan B with payments guaranteed for 10 years.
<PAGE>
PAGE 25
If the amount to be applied to a plan would not provide an monthly
payment of at least $20, we have the right to change the frequency
of the payment or to make a lump sum payment of the contract value.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments remain the same.
At settlement the fixed account contract value will be applied the
applicable Annuity Table. This will be done in accordance with the
payment plan chosen. The minimum amount payable for each $1,000 so
applied is shown in Table B on Page 16.
In addition, the amount of such fixed annuity payments will not be
less than that which would be provided if a single payment
immediate annuity then offered by us to annuitants in the same
class were to be purchased with the contract's fixed account
contract value.
Variable Annuity
A variable annuity is an annuity with payments which:
1. are not predetermined or guaranteed as to dollar amount; and
2. vary in amount with the investment experience of the variable
accounts.
Determination of the First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done:
1. on the valuation date on or next preceding the seventh calendar
day before the retirement date; and
2. in accordance with the payment plan chosen. The amount payable
for the first payment for each $1,000 so applied is shown in
Table A on Page 15.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first payment vary in amount.
The amount changes with the investment performance of the variable
accounts. The dollar amount of variable annuity payments after the
first is not fixed. It may change from month to month. The dollar
amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is divided by the
value of an annuity unit as of the valuation date on or next
preceding the seventh calendar day before the retirement date.
This result establishes the number of annuity units for each
monthly annuity payment after the first payment. This number of
annuity units remains fixed during the annuity payment period.
2. The fixed number of annuity units is multiplied by the annuity
unit value as of the valuation date on or next preceding the
seventh calendar day before the date the payment is due. The
result establishes the dollar amount of the payment.
<PAGE>
PAGE 26
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
Annuity units of any variable account may be exchanged for units of
any of the other variable accounts. This may be done no more than
once a year. Once annuity payments start no exchanges may be made
to or from any fixed annuity.
<PAGE>
PAGE 27
Tables of Settlement Rates
Table A below shows the amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, for each
$1,000 of value applied under any payment plan. 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
settlement date. Such rates are guaranteed to be not less than
those shown in Table B. 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 date of settlement. The amount of such annuity
payments under Plan D will depend upon the sex and 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 Calendar
Year of Year of
Annuitant's Adjust- Annuitant's Adjust-
Birth ment Birth ment
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 28
<TABLE>
<CAPTION>
Table A - Dollar Amount of First Monthly Variable 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 Yrs 5 Yrs Same 5 Yrs 10 Yrs
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>
45 5.16 4.87 5.15 4.87 5.12 4.86 5.07 4.84 5.06 4.82 45 4.45 4.54 4.63 4.72 4.81
46 5.21 4.91 5.20 4.91 5.17 4.90 5.12 4.88 5.11 4.86 46 4.47 4.56 4.66 4.76 4.85
47 5.28 4.96 5.26 4.96 5.23 4.94 5.17 4.92 5.16 4.91 47 4.50 4.59 4.69 4.80 4.90
48 5.34 5.01 5.33 5.00 5.29 4.99 5.23 4.96 5.21 4.95 48 4.52 4.62 4.73 4.84 4.94
49 5.41 5.06 5.39 5.05 5.35 5.04 5.28 5.01 5.27 4.99 49 4.55 4.65 4.76 4.88 5.00
50 5.48 5.12 5.46 5.11 5.41 5.09 5.34 5.06 5.33 5.04 50 4.57 4.68 4.80 4.93 5.05
51 5.55 5.17 5.53 5.17 5.48 5.14 5.40 5.11 5.39 5.09 51 4.60 4.72 4.85 4.98 5.11
52 5.63 5.23 5.61 5.23 5.55 5.20 5.46 5.16 5.46 5.15 52 4.63 4.75 4.89 5.03 5.17
53 5.71 5.30 5.69 5.29 5.63 5.26 5.53 5.22 5.53 5.20 53 4.66 4.79 4.94 5.09 5.23
54 5.80 5.37 5.77 5.36 5.70 5.33 5.60 5.28 5.60 5.26 54 4.70 4.84 4.99 5.15 5.30
55 5.89 5.44 5.86 5.43 5.79 5.40 5.67 5.34 5.68 5.33 55 4.73 4.88 5.04 5.21 5.38
56 5.99 5.52 5.96 5.51 5.88 5.47 5.74 5.40 5.76 5.39 56 4.77 4.93 5.10 5.28 5.46
57 6.10 5.60 6.06 5.59 5.97 5.54 5.82 5.47 5.84 5.47 57 4.81 4.98 5.16 5.35 5.54
58 6.21 5.69 6.17 5.68 6.07 5.62 5.90 5.54 5.94 5.54 58 4.85 5.03 5.23 5.43 5.63
59 6.33 5.79 6.29 5.77 6.17 5.71 5.98 5.62 6.03 5.62 59 4.90 5.09 5.30 5.52 5.73
60 6.46 5.89 6.42 5.87 6.28 5.80 6.07 5.69 6.13 5.70 60 4.94 5.15 5.37 5.61 5.83
61 6.60 6.00 6.55 5.97 6.40 5.90 6.16 5.78 6.24 5.79 61 5.00 5.21 5.45 5.70 5.95
62 6.75 6.11 6.69 6.08 6.52 6.00 6.25 5.86 6.36 5.89 62 5.05 5.28 5.54 5.81 6.07
63 6.91 6.23 6.84 6.20 6.64 6.11 6.34 5.95 6.48 5.99 63 5.11 5.35 5.63 5.92 6.20
64 7.09 6.37 7.01 6.33 6.78 6.22 6.43 6.04 6.61 6.10 64 5.17 5.43 5.73 6.04 6.34
65 7.27 6.51 7.18 6.47 6.91 6.34 6.52 6.14 6.74 6.21 65 5.23 5.52 5.83 6.17 6.49
66 7.47 6.66 7.36 6.61 7.06 6.47 6.62 6.24 6.88 6.33 66 5.30 5.61 5.95 6.30 6.65
67 7.68 6.82 7.56 6.77 7.21 6.60 6.71 6.34 7.04 6.46 67 5.38 5.70 6.07 6.45 6.82
68 7.91 7.00 7.76 6.73 7.36 6.74 6.81 6.44 7.19 6.60 68 5.46 5.80 6.20 6.61 7.01
69 8.15 7.19 7.98 7.11 7.52 6.89 6.90 6.54 7.36 6.74 69 5.54 5.92 6.34 6.79 7.21
70 8.41 7.39 8.21 7.31 7.68 7.04 6.98 6.65 7.54 6.90 70 5.63 6.03 6.49 6.97 7.42
71 8.69 7.62 8.46 7.51 7.84 7.21 7.07 6.75 7.73 7.06 71 5.73 6.16 6.65 7.17 7.66
72 8.99 7.86 8.71 7.74 8.01 7.38 7.15 6.86 7.92 7.24 72 5.84 6.30 6.83 7.39 7.90
73 9.31 8.12 8.98 7.98 8.18 7.56 7.23 6.96 8.13 7.42 73 5.95 6.44 7.02 7.62 8.17
74 9.65 8.41 9.27 8.23 8.35 7.74 7.30 7.06 8.35 7.63 74 6.07 6.60 7.22 7.87 8.46
75 10.02 8.72 9.57 8.51 8.52 7.93 7.37 7.15 8.58 7.84 75 6.19 6.77 7.44 8.14 8.77
*Adjusted age of annuitant. M = Male F = Female
Table A above is based on the "1983 Individual Annuitant Mortality Table A." 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.
<PAGE>
PAGE 29
Table B - Dollar 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 Yrs 5 Yrs Same 5 Yrs 10 Yrs
Age* M F M F M F M F M F Age* Younger Younger Age Older Older
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
46 3.99 3.68 3.98 3.68 3.96 3.67 3.92 3.66 3.85 3.61 46 3.20 3.31 3.43 3.55 3.66
47 4.05 3.73 4.05 3.73 4.02 3.72 3.98 3.71 3.90 3.66 47 3.23 3.35 3.47 3.59 3.71
48 4.12 3.79 4.11 3.79 4.09 3.77 4.04 3.76 3.96 3.70 48 3.26 3.38 3.51 3.64 3.76
49 4.19 3.84 4.18 3.84 4.15 3.83 4.10 3.81 4.01 3.75 49 3.29 3.42 3.56 3.69 3.82
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
51 4.34 3.97 4.33 3.96 4.29 3.95 4.23 3.92 4.14 3.86 51 3.36 3.50 3.65 3.80 3.94
52 4.43 4.03 4.41 4.03 4.37 4.01 4.30 3.98 4.20 3.91 52 3.39 3.54 3.70 3.86 4.01
53 4.51 4.10 4.50 4.10 4.45 4.08 4.37 4.04 4.27 3.97 53 3.43 3.59 3.76 3.93 4.08
54 4.60 4.18 4.59 4.17 4.54 4.15 4.45 4.11 4.35 4.03 54 3.47 3.64 3.82 3.99 4.16
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
56 4.80 4.34 4.78 4.33 4.72 4.30 4.61 4.25 4.50 4.17 56 3.56 3.74 3.94 4.14 4.32
57 4.91 4.42 4.89 4.41 4.82 4.38 4.69 4.32 4.58 4.24 57 3.60 3.80 4.01 4.22 4.41
58 5.03 4.52 5.00 4.50 4.92 4.47 4.78 4.40 4.67 4.31 58 3.65 3.86 4.08 4.30 4.51
59 5.15 4.61 5.12 4.60 5.03 4.56 4.87 4.48 4.76 4.39 59 3.70 3.92 4.15 4.39 4.61
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
61 5.42 4.83 5.39 4.81 5.26 4.76 5.06 4.66 4.96 4.56 61 3.81 4.06 4.32 4.59 4.83
62 5.57 4.95 5.53 4.93 5.39 4.86 5.16 4.75 5.07 4.66 62 3.87 4.13 4.41 4.70 4.96
63 5.74 5.07 5.69 5.05 5.52 4.98 5.26 4.85 5.19 4.75 63 3.94 4.21 4.51 4.81 5.09
64 5.91 5.21 5.85 5.18 5.66 5.10 5.36 4.95 5.30 4.86 64 4.00 4.29 4.61 4.94 5.24
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
66 6.29 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.56 5.08 66 4.15 4.48 4.84 5.21 5.55
67 6.50 5.67 6.41 5.63 6.11 5.50 5.66 5.26 5.70 5.20 67 4.23 4.58 4.97 5.36 5.73
68 6.73 5.85 6.62 5.80 6.28 5.65 5.76 5.37 5.85 5.33 68 4.31 4.69 5.10 5.53 5.92
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 6.00 5.47 69 4.40 4.80 5.25 5.70 6.12
70 7.23 6.25 7.07 6.18 6.61 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
71 7.51 6.47 7.32 6.39 6.78 6.14 6.05 5.71 6.33 5.76 71 4.60 5.06 5.57 6.10 6.57
72 7.80 6.71 7.58 6.62 6.96 6.31 6.14 5.83 6.51 5.93 72 4.71 5.20 5.75 6.31 6.82
73 8.12 6.97 7.85 6.86 7.14 6.50 6.23 5.94 6.70 6.10 73 4.83 5.35 5.94 6.55 7.09
74 8.45 7.26 8.14 7.12 7.32 6.69 6.31 6.04 6.90 6.28 74 4.95 5.51 6.15 6.80 7.37
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
*Adjusted age of annuitant. M = Male F = Female
Table B 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 interest rate.
Plan E - Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Payable Monthly Payment Years Payable Monthly Payment Years Payable Monthly Payment
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 30
Flexible Payment Deferred Annuity Contract
American Centurion Life
P.O. Box 5555
Albany, New York 12205-0555
o Flexible Purchase Payments
o Optional Fixed Dollar or Variable Accumulation Values and Annuity
Payments
o Annuity Payments to Begin on the Retirement Date
o This Contract is Nonparticipating - Dividends Are Not Payable
<PAGE>
PAGE 1
American Centurion Life
Variable Annuity Application
P.O. Box 5555
Albany, New York 12205-0555
Annuitant Full Name (First, Middle Initial, Last)
Address (Street Address or P.O. Box, City, State, Zip)
Phone Number
( )
Sex __ M __ F Date of Birth Social Security Number
Owner (check one)
__ Same as Annuitant (Do not complete owner information below)
__ Joint with Annuitant - Not available for IRA
__ Other
Full Name (First, Middle Initial, Last)
Address (Street Address or P.O. Box, City, State, Zip)
Relationship to the annuitant
Phone Number
( )
Sex __ M __ F Date of Birth Social Security Number
For joint owners, the annuitant's Social Security number will be
used for tax reporting purposes unless you specify otherwise under
Remarks.
Primary Beneficiary Relationship to the annuitant
Contingent Beneficiary (if any) Relationship to the annuitant
Annuity Plan (check one)
__ Nonqualified Annuity
__ Individual Retirement Annuity (IRA)
__ SEP-IRA - Amount for _______ (year) $_____
__ Other
If IRA:
__ Regular - Amount for _______ (year) $_____
Amount for _______ (year) $_____
__ Rollover IRA Amount $_____
__ Trustee to Trustee Transfer - Amount $_____
Purchase Payments
Initial Purchase Payment $_____
<PAGE>
PAGE 2
*Payment Allocation:
__ % ACL Fixed Account __ % IDSL Special Income
__ % G.T. Global: Latin Am. __ % PCM Divers. Income
__ % G.T. Global: New Pac. __ % PCM Growth & Income
__ % IDSL Aggr. Growth __ % PCM High Yield
__ % IDSL Cap. Resource __ % PCM New Opp.
__ % IDSL International __ % OCC Managed
__ % IDSL Managed __ % OCC U.S. Gov't Income
__ % IDSL Moneyshare __ % Other
*Must be whole numbers and must result in at least $500 allocated
to any variable subaccount or to the fixed account. Your above
payment allocation instructions will remain in effect for any
future payments you make until you change your instructions.
Replacement
Will the annuity applied for replace any existing insurance or
annuity?
__ Yes __ No
If yes, provide details - company, contract number, amount, reason
- - under Remarks.
Remarks and Special Instructions
(Including special mailing instructions)
It Is Agreed That:
1. All statements and answers given above are true and complete to
the best of my/our knowledge.
2. Only an officer of American Centurion Life Assurance Company can
modify any annuity contract or waive any requirement in this
application.
3. If joint spousal owners are named, ownership will be in joint
tenancy with right of survivorship unless specified otherwise in
Remarks above.
4. I/we acknowledge receipt of current prospectuses for the
variable annuity and any funds involved.
5. I/we understand that earnings and values, when based on the
investment experience of a variable fund, portfolio, account or
subaccount, are not guaranteed and may both increase and decrease.
Signatures
_____________________ ___________________ _____________________
Location (City/State) Annuitant Signature Owner Signature (if
other than annuitant)
______________ ________________________ _______________________
Date Licensed Agent Signature Joint Contractowner (if
any) Signature
45055 Please complete agent information on reverse side.
A (11/95)
<PAGE>
PAGE 3
Agent - Report (Type or Print)
Agent's Name
Agent's Social Security Number
Agency Name and Number (if applicable)
Telephone Number
Fax Number
Branch Address
I hereby certify that I personally solicited this application; that
the application and this report are complete and accurate to the
best of my knowledge and belief. To the best of my knowledge and
belief, this application n does n does not involve replacement of
existing life insurance or annuities. (If replacement is involved,
I have provided details - company, contract number, amount,
reason - under Remarks and have completed any state replacement
requirements.)
____________________________
Licensed Agent Signature
<PAGE>
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
Company. Any such notice of meeting of stock-holders shall state
<PAGE>
PAGE 2
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.
<PAGE>
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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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PAGE 4
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, by a 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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PAGE 5
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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PAGE 6
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
<PAGE>
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, coprincipal, 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.
<PAGE>
PAGE 8
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.
<PAGE>
PAGE 1
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.
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
<PAGE>
PAGE 2
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.
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.
<PAGE>
PAGE 3
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 Directors 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.
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
<PAGE>
PAGE 4
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
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
<PAGE>
PAGE 5
Post Office
Name Residence Address
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.
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.
<PAGE>
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.
3/23/87
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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
Consent of Independent Auditors
We consent to the reference to our firm under the caption
"Independent Auditors" and to the use of our report dated May 3,
1996 on the statutory basis financial statements of American
Centurion Life Assurance Company in Pre-Effective Amendment No. 1
to the Registration Statement (Form N-4 File No. 333-00519) for the
registration of the ACL Variable Annuity Account 2 to be offered by
American Centurion Life Assurance Company.
Ernst & Young LLP
Minneapolis, Minnesota
February 4, 1997
<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
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<CIK> 0040937690
<NAME> American Centurion Life Assurance Company
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1996
<PERIOD-START> JAN-01-1995 JAN-01-1996
<PERIOD-END> DEC-31-1995 SEP-30-1996
<PERIOD-TYPE> YEAR 9 MONTH
<EXCHANGE-RATE> 1 1
<DEBT-HELD-FOR-SALE> 0 0
<DEBT-CARRYING-VALUE> 106810 130704
<DEBT-MARKET-VALUE> 109181 138560
<EQUITIES> 0 0
<REAL-ESTATE> 0 0
<TOTAL-INVEST> 106810 130704
<CASH> 4840 7526
<RECOVER-REINSURE> 0 0
<DEFERRED-ACQUISITION> 0 0
<TOTAL-ASSETS> 113235 140287
<POLICY-LOSSES> 92491 120889
<UNEARNED-PREMIUMS> 0 0
<POLICY-OTHER> 0 0
<POLICY-HOLDER-FUNDS> 225 225
<NOTES-PAYABLE> 0 0
<COMMON> 1000 1000
0 0
0 0
<OTHER-SE> 14271 13380
<TOTAL-LIABILITY-AND-EQUITY> 113235 140287
20799 35634
<INVESTMENT-INCOME> 7694 6642
<INVESTMENT-GAINS> 0 0
<OTHER-INCOME> 19 6
<BENEFITS> 25695 39627
<UNDERWRITING-AMORTIZATION> 0 0
<UNDERWRITING-OTHER> 1402 3836
<INCOME-PRETAX> 1415 (1181)
<INCOME-TAX> 1167 (622)
<INCOME-CONTINUING> 248 (559)
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 248 (559)
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
<RESERVE-OPEN> 0 0
<PROVISION-CURRENT> 0 0
<PROVISION-PRIOR> 0 0
<PAYMENTS-CURRENT> 0 0
<PAYMENTS-PRIOR> 0 0
<RESERVE-CLOSE> 0 0
<CUMULATIVE-DEFICIENCY> 0 0
</TABLE>
<PAGE>
PAGE 1
AMERICAN CENTURION LIFE ASSURANCE COMPANY
ACL Variable Annuity Account 2
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 2
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
