SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 2 (File No. 333-00519) [X]
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and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 6 (File No. 811-07511) [X]
---------
(Check appropriate box or boxes)
ACL VARIABLE ANNUITY ACCOUNT 2
- --------------------------------------------------------------------------------
(Exact Name of Registrant)
American Centurion Life Assurance Company
- --------------------------------------------------------------------------------
(Name of Depositor)
20 Madison Avenue Extension, P.O. Box 5555, Albany NY 12205-0555
- --------------------------------------------------------------------------------
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-7981
- --------------------------------------------------------------------------------
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
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(Name and Address of Agent for Service)
It is proposed that this filing will become effective (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
[X] on October 26, 1998 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.
<PAGE>
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 the prospectus and Statement of Additional
Information are so indicated.
PART A
Item No. Section in Prospectus
1 Cover page
2 Key terms
3 (a) Expense summary
(b) The annuities in brief
4 (a) NA
(b) Performance information
(c) Financial statements
5 (a) Cover page; About American Centurion Life
(b) The variable account
(c) The funds
(d) Cover page; The funds
(e) Voting rights
(f) NA
(g) NA
6 (a) Charges
(b) Expense summary; Charges
(c) Charges
(d) Distribution of the contracts
(e) The funds
(f) NA
7 (a) Buying your annuity; Benefits in case of death; The annuity
payout period
(b) The variable account; Transferring money between subaccounts;
Transfer policies
(c) The funds; Charges
(d) Cover page
8 (a) The annuity payout period
(b) Buying your 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) 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 annuities in brief
12 (a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the Statement of Additional Information
PART B
Item No. Section in Statement of Additional Information
15 (a) Cover Page
(b) NA
16 Table of Contents
17 (a) NA
(b) NA
(c) About American Centurion Life*
18 (a) NA
(b) NA
(c) Independent Auditors
(d) NA
(e) NA
(f) NA
19 (a) Distribution of the contracts*
(b) NA
20 (a) Principal Underwriter
(b) Principal Underwriter
(c) NA
(d) NA
21 (a) Performance Information
(b) Performance Information
22 Calculating Annuity Payouts
23 (a) NA
(b) Financial Statements
*Designates page number in the prospectus, which is hereby incorporated by
reference in this Statement of Additional Information.
<PAGE>
ACL Personal Portfolio Plus2 / ACL Personal PortfolioSM
Oct. __, 1998
Variable Annuity Prospectus
The flexible premium variable annuity contracts described in the prospectus are
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 annuities are available for individual retirement annuities (IRAs),
simplified employee pension plans (SEPs), Roth IRAs and nonqualified retirement
plans. The information in the prospectus relates to both annuities unless we
state otherwise.
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: 800-504-0469
This prospectus contains information about the variable account that you should
know before investing. Refer to "The variable account" in this prospectus. As in
the case of other annuities, it may not be advantageous to purchase one of these
annuities as a replacement for, or in addition to an existing annuity.
The prospectus is accompanied or preceded by the following prospectuses: For ACL
Personal Portfolio Plus2: AIM Variable Insurance Funds, Inc.; American Century
Variable Portfolios, Inc.; IDS Life Retirement Annuity Mutual Funds; Janus Aspen
Series; OCC Accumulation Trust; Oppenheimer Variable Account Funds; and Putnam
Variable Trust - Class IB Shares. For ACL Personal PortfolioSM: GT Global
Variable Investment Funds; IDS Life Retirement Annuity Mutual Funds; OCC
Accumulation Trust; and Putnam Variable Trust - Class IA Shares. 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.
American Centurion Life is not a bank or financial institution, and the
securities it offers are not deposits or obligations of, backed or guaranteed or
endorsed by any bank or financial institution nor are they insured by the
Federal Deposit Insurance Corporation, the Federal Reserve Board or any other
agency. Investments in this annuity involve investment risk including the
possible loss of principal.
<PAGE>
A Statement of Additional Information (SAI), dated Oct. __, 1998 (incorporated
by reference into this prospectus) and filed with the Securities and Exchange
Commission (SEC), 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.
<PAGE>
Table of contents
Key terms.................................................................
The annuities in brief....................................................
Expense summary...........................................................
Financial statements......................................................
Performance information...................................................
The variable account......................................................
The funds.................................................................
AIM V.I. Growth and Income Fund......................................
AIM V.I. International Equity Fund...................................
AIM V.I. Value Fund..................................................
American Century VP Income and Growth................................
American Century VP Value............................................
GT Global Variable Latin America Fund................................
GT Global Variable New Pacific Fund..................................
IDS Life Aggressive Growth Fund......................................
IDS Life Capital Resource Fund.......................................
IDS Life Growth Dimensions Fund......................................
IDS Life International Equity Fund...................................
IDS Life Managed Fund................................................
IDS Life Moneyshare Fund.............................................
IDS Life Special Income Fund.........................................
Janus Aspen Series Balanced Portfolio................................
Janus Aspen Series Worldwide Growth Portfolio........................
OCC Accumulation Trust Equity Portfolio..............................
OCC Accumulation Trust Managed Portfolio.............................
OCC Accumulation Trust Small Cap Portfolio...........................
OCC Accumulation Trust U.S. Government Income Portfolio..............
Oppenheimer Variable Account Growth Fund.............................
Oppenheimer Variable Account High Income Fund........................
Putnam VT Diversified Income Fund - Class IA and IB Shares...........
Putnam VT Growth and Income Fund - Class IA and IB Shares............
Putnam VT High Yield Fund - Class IA and IB Shares...................
Putnam VT New Opportunities Fund - Class IA Shares...................
Putnam VT Voyager Fund - Class IB Shares.............................
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 charge..........................................
Valuing your investment...................................................
Number of units......................................................
Accumulation unit value..............................................
Net investment factor................................................
Factors that affect variable subaccount accumulation units...........
<PAGE>
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.............................................................
Substitution of investments...............................................
Distribution of the contracts.............................................
About American Centurion Life.............................................
Year 2000.................................................................
Regular and special reports...............................................
Services.............................................................
Table of contents of the Statement of Additional Information.........
<PAGE>
Key terms
These terms can help you understand details about your annuity.
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 - A contract purchased from an insurance company that offers
tax-deferred growth of the investment until earnings are withdrawn, and that can
be tailored to meet the specific needs of the individual during retirement.
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) - Mutual funds or portfolios, each with a different
investment objective. You may allocate your purchase payments into variable
subaccounts investing in shares of any or all of these funds (See "The 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.
<PAGE>
Qualified annuity - An annuity purchased for one of the following retirement
plans that is subject to applicable federal law and any rules of the plan
itself:
o Individual Retirement Annuities (IRAs), including Roth 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.
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 separate subaccounts to which you may allocate
purchase payments; each subaccount 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 underlying mutual fund.
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.
The annuities in brief
Purpose: Each annuity is designed to allow you to accumulate money 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 to 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 the subaccounts of the variable account, each of which invests in a mutual
fund with a particular investment objective. The value of each variable
subaccount varies with the performance of the particular fund in which it
invests. 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 a rate that is adjusted
periodically by American Centurion Life. (p. )
<PAGE>
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. Payment must be made in a lump sum
with the option of additional payments in the future. (p. )
o Minimum initial payment - $2,000 (without prior approval)
o Minimum additional payment - $50
o Maximum total payment(s) - $1,000,000 (without prior approval)
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 die 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 may 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 be taxed on the
income if you are the owner. Roth IRAs, however, may grow tax free if you meet
certain distribution requirements. (p. )
Charges: Your annuity 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. (p. )
Expense summary
The purpose of this table is to help you understand the various costs and
expenses associated with your annuity.
<PAGE>
You pay no sales charge when you purchase your annuity. All costs that you bear
directly or indirectly for the variable subaccounts and underlying mutual funds
are shown below. Some expenses may vary as explained under "Charges."
Contract owner expenses for ACL Personal Portfolio Plus2 and ACL Personal
PortfolioSM:
Withdrawal charge (contingent deferred sales charge as a percentage
of purchase payment)
Contract years from Withdrawal charge
payment receipt percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
Annual contract administrative charge: $30
Variable account annual expenses
Variable account administrative charge
(as a percentage of average daily net assets
of the underlying fund)...............................................0.15%
Mortality and expense risk fee
(as a percentage of average daily net assets
of the underlying fund)...............................................1.25%
Total variable account annual expenses................................1.40%
Annual operating expenses of mutual funds underlying ACL Personal Portfolio
Plus2 (management fees and other expenses deducted as a percentage of average
net assets as follows:)
<TABLE>
<CAPTION>
American
AIM V.I. AIM V.I. Century VP American IDS Life
Growth and International AIM V.I. Income and Century VP Aggressive
Income+ Equity+ Value+ Growth Value Growth
<S> <C> <C> <C> <C> <C> <C>
Management fees 0.63% 0.75% 0.62% 0.70% 1.00% 0.60%
12b-1 fees - - - - - -
Other expenses 0.06 0.18 0.08 0.00 0.00 0.07
Total 0.69%+ 0.93%+ 0.70%+ 0.70% 1.00% 0.67%**
<PAGE>
IDS Life IDS Life IDS Life
Capital Growth International IDS Life IDS Life IDS Life
Resource Dimensions Equity Managed Moneyshare Special
Income
Management fees 0.60% 0.63% 0.83% 0.59% 0.51% 0.60%
12b-1 fees - - - - - -
Other expenses 0.07 0.08 0.11 0.05 0.06 0.07
Total 0.67%** 0.71%** 0.94%** 0.64%** 0.57%** 0.67%**
OCC
Accumulation
Janus Aspen Trust U.S.
Janus Aspen Series OCC OCC Government
Series Worldwide OCC Accumulation Accumulation Income
Balanced Growth Accumulation Trust Managed Trust Small (after
(after fee (after fee Trust Equity Cap expense
reductions) reductions) limitations)
Management fees 0.76% 0.66% 0.80% 0.80% 0.80% 0.47%
12b-1 fees - - - - - -
Other expenses 0.07 0.08 0.19 0.07 0.17 0.46
Total 0.83%++ 0.74%++ 0.99%*** 0.87%*** 0.97%*** 0.93%***
Oppenheimer Oppenheimer Putnam VT Putnam VT Putnam VT
Variable Variable Diversified Growth and High Yield Putnam VT
Account Account High Income Fund Income Fund Fund - Class Voyager Fund
Growth Income - Class IB - Class IB IB - Class IB
Management fees 0.73% 0.75% 0.69% 0.47% 0.66% 0.58%
12b-1 fees - - 0.15 0.15 0.15 0.15
Other expenses 0.02 0.07 0.11 0.04 0.06 0.05
Total 0.75%+ 0.82%+ 0.95%+ 0.66%+ 0.87%+ 0.78%+
</TABLE>
+ Operating expenses of the underlying funds at Dec. 31, 1997. A I M
Advisers, Inc. ("AIM") may from time to time voluntarily waive or reduce
its respective fees. Effective May 1, 1998, the Funds reimburse AIM in an
amount up to 0.25% of the average net asset value of each Fund, for
expenses incurred in providing, or assuring that participating insurance
companies provide, certain administrative services. Currently, the fee only
applies to the average net asset value of each Fund in excess of the net
asset value of each Fund as calculated on April 30, 1998.
* Premium taxes imposed by some state and local governments are not reflected
in this table.
** Annualized operating expenses of underlying funds at Dec. 31, 1997.
*** Total Portfolio Expenses of the OCC Accumulation Trust Portfolios are
limited by OpCap Advisors so that their respective annualized operating
expenses (net of any expense offsets) do not exceed 1.00% of average daily
net assets for the Equity, Managed, Small Cap and U.S. Government Income
Portfolios. Without such limitation and without giving effect to any
expense offsets, the Management Fees, Other Expenses and Total Portfolio
Expenses would have been: .80%, .19% and .99%, respectively, for the Equity
Portfolio, .80%, .07% and .87%, respectively, for the Managed Portfolio,
.80%, .17% and .97%, respectively, for the Small Cap Portfolio and .60%,
.46% and 1.06%, respectively, for the U.S. Government Income Portfolio for
the fiscal year ended December 31, 1997.
+ Operating expenses of the underlying funds at Dec. 31, 1997.
++ The figures given above are based on gross expenses before expense offset
arrangements, if any, during 1997, for these funds. As of the date of this
prospectus, certain fees are being reduced by the respective investment
managers or service providers for certain of the underlying funds, in each
case on a voluntary basis. Without such reductions, the "Management fees",
"Other expenses" and "Total" that would have been incurred for the last
completed fiscal year would be: .77%, .06% and .83%, respectively, for
Janus Aspen Series Balanced Portfolio, and .72%, .09% and .81%,
respectively, for Janus Aspen Series Worldwide Growth Portfolio. See the
Portfolios' prospectuses for a discussion of fee reductions.
<PAGE>
<TABLE>
<CAPTION>
Example:*
American
AIM V.I. AIM V.I. Century VP American IDS Life
Growth and International AIM V.I. Income and Century VP Aggressive
Income+ Equity+ Value+ Growth Value Growth
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:
<S> <C> <C> <C> <C> <C> <C>
1 year $ 92.72 $ 95.18 $ 92.83 $ 92.83 $ 95.90 $ 92.52
3 years 120.05 127.44 120.36 120.36 129.59 119.43
5 years 149.99 162.33 150.51 150.51 165.90 148.96
10 years 257.26 281.91 258.30 258.30 288.99 255.18
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 $ 22.72 $ 25.18 $ 22.83 $ 22.83 $ 25.90 $ 22.52
3 years 70.05 77.44 70.36 70.36 79.59 69.43
5 years 119.99 132.33 120.51 120.51 135.90 118.96
10 years 257.26 281.91 258.30 258.30 288.99 255.18
<PAGE>
IDS Life IDS Life IDS Life
Capital Growth International IDS Life IDS Life IDS Life
Resource Dimensions Equity Managed Moneyshare Special Income
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 $ 92.52 $ 92.93 $ 95.29 $ 92.21 $ 91.49 $ 92.52
3 years 119.43 120.67 127.75 118.50 116.34 119.43
5 years 148.96 151.02 162.84 147.40 143.78 148.96
10 years 255.18 259.34 282.92 252.05 244.72 255.18
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 $ 22.52 $ 22.93 $ 25.29 $ 22.21 $ 21.49 $ 22.52
3 years 69.43 70.67 77.75 68.50 66.34 69.43
5 years 118.96 121.02 132.84 117.40 113.78 118.96
10 years 255.18 259.34 282.92 252.05 244.72 255.18
<PAGE>
OCC
Janus Aspen OCC OCC Accumulation
Janus Aspen Series OCC Accumulation Accumulation Trust U.S.
Series Worldwide Accumulation Trust Trust Small Government
Balanced Growth Trust Equity Managed Cap Income
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 $ 94.16 $ 93.24 $ 95.80 $ 94.57 $ 95.59 $ 95.18
3 years 124.37 121.59 129.29 125.60 128.67 127.44
5 years 157.20 152.57 165.39 159.26 164.37 162.33
10 years 271.71 262.45 287.98 275.80 285.96 281.91
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 $ 24.16 $ 23.24 $ 25.80 $ 24.57 $ 25.59 $ 25.18
3 years 74.37 71.59 79.29 75.60 78.67 77.44
5 years 127.20 122.57 135.39 129.26 134.37 132.33
10 years 271.71 262.45 287.98 275.80 285.96 281.91
Oppenheimer Oppenheimer Putnam VT Putnam VT Putnam VT
Variable Variable Diversified Growth and High Yield Putnam VT
Account Account High Income Fund Income Fund Fund - Class Voyager Fund -
Growth Income - Class IB - Class IB IB Class IB
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 $ 93.34 $ 94.06 $ 95.39 $ 92.42 $ 94.57 $ 93.65
3 years 121.90 124.06 128.06 119.12 125.60 122.83
5 years 153.09 156.69 163.35 148.44 159.26 154.63
10 years 263.48 270.69 283.94 254.14 275.80 266.57
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 $ 23.34 $ 24.06 $ 25.39 $ 22.42 $ 24.57 $ 23.65
3 years 71.90 74.06 78.06 69.12 75.60 72.83
5 years 123.09 126.69 133.35 118.44 129.26 124.63
10 years 263.48 270.69 182.94 254.14 275.80 266.57
* In this example, the $30 annual contract administrative charge is
approximated as a .127% charge based on the average contract size. American
Centurion Life has entered into certain arrangements under which it is
compensated by the funds' advisers and/or distributors for the
administrative services it provides to the funds.
</TABLE>
<PAGE>
This example should not be considered a representation of past or future
expenses. Actual expenses may be more or less than those shown.
Annual operating expenses of mutual funds underlying ACL Personal PortfolioSM
(management fees and other expenses deducted as a percentage of average net
assets as follows):
<TABLE>
<CAPTION>
GT Global GT Global
Variable Variable New
Latin America Pacific IDS Life IDS Life IDS Life
(after (after Aggressive Capital International IDS Life IDS Life
expense expense Growth Resource Equity Managed Moneyshare
reimbursement) reimbursement)
<S> <C> <C> <C> <C> <C> <C> <C>
Management fees 1.00% 1.00% 0.60% 0.60% 0.83% 0.59% 0.51%
Other expenses 0.25 0.09 0.07 0.07 0.11 0.05 0.06
Total 1.25%++ 1.09%++ 0.67%* 0.67%* 0.94%* 0.64%* 0.57%*
OCC
Accumulation
Trust U.S. Putnam VT
OCC Government Putnam VT Putnam VT Putnam VT New
IDS Life Accumulation Income Diversified Growth and High Yield Opportunities
Special Trust (after Income Fund Income Fund Fund - Fund -
Income Managed expense - Class IA - Class IA Class IA Class IA
limitations)
Management fees 0.60% 0.80% 0.47% 0.69% 0.47% 0.66% 0.58%
Other expenses 0.07 0.07 0.46 0.11 0.04 0.06 0.05
Total 0.67%* 0.87%** 0.93%** 0.80%+ 0.51%+ 0.72%+ 0.63%+
</TABLE>
* Annualized operating expenses of underlying mutual funds at Dec. 31, 1997.
** Total portfolio expenses of the OCC Accumulation Trust Portfolios are
limited by OpCap Advisors so that their respective annualized operating
expenses (net of any expense offsets) do not exceed 1.00% of average daily
net assets for the Managed and U.S. Government Income Portfolios. Without
such limitation and without giving effect to any expense offsets, the
Management Fees, Other Expenses and Total Portfolio Expenses would have
been: .80%, .07% and .87%, respectively, for the Managed Portfolio and
.60%, .46% and 1.06%, respectively, for the U.S. Government Income
Portfolio for the fiscal year ended December 31, 1997.
+ Operating expenses of the underlying mutual funds at Dec. 31, 1997.
++ Figures in the "Other Expenses" and "Total" columns are restated from the
amounts you would have incurred in 1997 to reflect fee and reimbursement or
waiver arrangements. If there had been no reimbursement of expenses by
Chancellor 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%,
.40%, 1.40%; and GT Global Variable New Pacific Fund, 1.00%, .43%, 1.43%.
<PAGE>
<TABLE>
<CAPTION>
Example:*
GT Global
Variable GT Global IDS Life IDS Life IDS Life
Latin America Variable New Aggressive Capital International IDS Life IDS Life
Pacific Growth Resource Equity Managed Moneyshare
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:
<S> <C> <C> <C> <C> <C> <C> <C>
1 year $ 98.46 $ 96.82 $ 92.52 $ 92.52 $ 95.29 $ 92.21 $ 91.49
3 years 137.24 132.35 119.43 119.43 127.75 118.50 116.34
5 years 178.58 170.48 148.96 148.96 162.84 147.40 143.78
10 years 313.87 298.02 255.18 255.18 282.92 252.05 244.72
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 $ 28.46 $ 26.82 $ 22.52 $ 22.52 $ 25.29 $ 22.21 $ 21.49
3 years 87.24 82.35 69.43 69.43 77.75 68.50 66.34
5 years 148.58 140.48 118.96 118.96 132.84 117.40 113.78
10 years 313.87 298.02 255.18 255.18 282.92 252.05 244.72
OCC Putnam VT Putnam VT New
OCC Accumulation Putnam VT Growth and Putnam VT Opportunities
IDS Life Accumulation Trust U.S. Diversified Income High Yield Fund -
Special Trust Managed Government Income Fund Fund - Fund - Class IA
Income Income - Class IA Class IA Class IA
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 $ 92.52 $ 94.57 $ 95.18 $ 93.85 $ 90.88 $ 93.03 $ 92.11
3 years 119.43 125.60 127.44 123.44 114.48 120.98 118.19
5 years 148.96 159.26 162.33 155.66 140.66 151.54 146.89
10 years 255.18 275.80 281.91 268.63 238.39 260.38 251.01
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 $ 22.52 $ 24.57 $ 25.18 $ 23.85 $ 20.88 $ 23.03 $ 22.11
3 years 69.43 75.60 77.44 73.44 64.48 70.98 68.19
5 years 118.96 129.26 132.33 125.66 110.66 121.54 116.89
10 years 255.18 275.80 281.91 268.63 238.39 260.38 251.01
</TABLE>
<PAGE>
* In this example, the $30 annual contract administrative charge is approximated
as a .127% charge based on the average contract size. American Centurion Life
has entered into certain arrangements under which it is compensated by the
funds' advisers and/or distributors for the administrative services it provides
to the funds.
This example should not be considered a representation of past or future
expenses. Actual expenses may be more or less than those shown.
Financial statements
The SAI dated Oct. __, 1998 contains the audited financial statements of
American Centurion Life including:
- balance sheets as of Dec. 31, 1997 and Dec. 31, 1996; and
- related statements of income, stockholder's equity and cash flows for
the years ended Dec. 31, 1997, 1996, and 1995.
The SAI does not include financial statements of the variable account
because this new account had no activity in 1997.
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 subaccount
during a particular time period. We show actual performance from the date the
subaccounts began investing in funds. We also show performance from the
commencement date of the funds as if the annuity had existed at that time.
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.
Yield - For subaccounts investing in income funds: Net investment income (income
less expenses) per accumulation unit during a given 30-day period is divided by
the value of the unit on the last day of the period. The result is converted to
an annual percentage.
Average annual total return: Expressed as an average annual compounded rate of
return of a hypothetical investment over a period of one, five and 10 years (or
up to the life of the subaccount if it is less than 10 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).
<PAGE>
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 risk 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.
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 annuity charges that have 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
Under your ACL Personal Portfolio Plus2 contract, 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
AIM V.I. Growth and Income Fund IGN
AIM V.I. International Equity Fund IIN
AIM V.I. Value Fund IVA
American Century VP Income and Growth IIG
American Century VP Value IVL
IDS Life Aggressive Growth Fund IAG
IDS Life Capital Resource Fund ICR
IDS Life Growth Dimensions Fund IGD
IDS Life International Equity Fund IIE
IDS Life Managed Fund IMG
IDS Life Moneyshare Fund IMS
IDS Life Special Income Fund ISI
Janus Aspen Series Balanced Portfolio ISB
Janus Aspen Series Worldwide Growth Portfolio IWG
OCC Accumulation Trust Equity Portfolio IEQ
OCC Accumulation Trust Managed Portfolio IMD
OCC Accumulation Trust Small Cap Portfolio ISC
OCC Accumulation Trust U.S. Government Income Portfolio IUS
Oppenheimer Variable Account Growth Fund IGR
Oppenheimer Variable Account High Income Fund IHI
Putnam VT Diversified Income Fund - Class IB Shares IPD
<PAGE>
Putnam VT Growth and Income Fund - Class IB Shares IPG
Putnam VT High Yield Fund - Class IB Shares IPH
Putnam VT Voyager - Class IB Shares IPV
Under your ACL Personal PortfolioSM contract, 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
GT Global Variable Latin America Fund ILA
GT Global Variable New Pacific Fund IPA
IDS Life Aggressive Growth Fund IAG
IDS Life Capital Resource Fund ICR
IDS Life International Equity Fund IIE
IDS Life Managed Fund IMG
IDS Life Moneyshare Fund IMS
IDS Life Special Income Fund ISI
OCC Accumulation Trust Managed Portfolio IMD
OCC Accumulation Trust U.S. Government Income Portfolio IUS
Putnam VT Diversified Income Fund - Class IA Shares IDI
Putnam VT Growth and Income Fund - Class IA Shares IGI
Putnam VT High Yield Fund - Class IA Shares IHY
Putnam VT New Opportunities Fund - Class IA Shares INO
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 subaccount 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.
The funds
AIM V.I. Growth and Income Fund
Objective: growth of capital, with current income as a secondary objective. The
fund seeks to achieve its objective by generally investing at least 65% of its
net assets in stocks of companies believed by management to have the potential
for above average growth in revenues and earnings.
AIM V.I. International Equity Fund
Objective: long-term growth of capital. Invests in international equity
securities, the issuers of which are considered by AIM to have strong earnings
momentum.
<PAGE>
AIM V.I. Value Fund
Objective: long-term growth of capital. Invests primarily in equity securities
judged by AIM to be undervalued relative to the current or projected earnings of
the companies issuing the securities or relative to the equity markets
generally. Income is a secondary objective.
American Century VP Income and Growth
Objective: dividend growth, current income and capital appreciation. Invests
primarily in common stocks.
American Century VP Value
Objective: long-term capital growth with income as a secondary objective.
Invests primarily in securities that management believes to be undervalued at
the time of purchase.
GT Global Variable Latin America Fund
Objective: capital appreciation. Normally invests at least 65% of its total
assets in the securities of a broad range of Latin American issuers. The Fund
may invest in common stock, preferred stock, rights, warrants and securities
convertible into common stock, and other substantially similar forms of equity
securities with comparable risk characteristics, as well as bonds, notes,
debentures or other forms of indebtedness that may be developed in the future.
GT Global Variable New Pacific Fund
Objective: long-term growth of capital. Normally invests at least 65% of its
total assets in equity securities of issuers domiciled in Australia, Hong Kong,
India, Indonesia, Malaysia, New Zealand, Pakistan, the Philippines, Singapore,
South Korea, Taiwan and Thailand. Equity securities in which the Fund may invest
include common stock, preferred stock, convertible debt securities and warrants
to acquire such securities.
IDS Life Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock of small- and
medium-size companies.
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 Growth Dimensions Fund
Objective: long-term growth of capital. Invests primarily in common stocks of
U.S. and foreign companies showing potential for significant growth.
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 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.
<PAGE>
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.
IDS Life Special Income Fund
Objective: 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.
Janus Aspen Series Balanced Portfolio
Objective: long-term growth of capital, balanced by current income. The
Portfolio normally invests 40-60% of its assets in securities selected primarily
for their growth potential and 40-60% of its assets in securities selected
primarily for their income potential.
Janus Aspen Series Worldwide Growth Portfolio
Objective: long-term growth of capital in a manner consistent with the
preservation of capital. Invests primarily in common stocks of foreign and
domestic issuers.
OCC Accumulation Trust Equity Portfolio
Objective: long term capital appreciation. Invests in a diversified portfolio of
equity securities selected on the basis of a value-oriented approach to
investing.
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 Small Cap Portfolio
Objective: capital appreciation. Invests in a diversified portfolio of equity
securities of companies with market capitalizations of under $1 billion.
OCC Accumulation Trust U.S. Government Income Portfolio
Objective: 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.
Oppenheimer Variable Account Growth Fund
Objective: capital appreciation. Invests in securities of well-known established
companies.
Oppenheimer Variable Account High Income Fund
Objective: high level of current income. Invests in high-yield, fixed-income
securities, including unrated securities or high-risk securities in the lower
rating categories, commonly known as "junk bonds". These securities are subject
to a greater risk of loss of principal and nonpayment of interest than
higher-rated securities.
<PAGE>
Putnam VT Diversified Income Fund - Class IA and IB Shares
Objective: high current income consistent with capital preservation by investing
in the following three sectors of the fixed income securities markets: a U.S.
Government Sector, a High Yield Sector (which invests primarily in securities
commonly known as "junk bonds"), and an International Sector. Consult the Putnam
Variable Trust prospectus for further information on the risks associated with
this fund's investments in high yield higher-risk fixed income securities.
Putnam VT Growth and Income Fund - Class IA and IB Shares
Objective: capital growth and current income by investing primarily in common
stocks that offer potential for capital growth, current income or both.
Putnam VT High Yield Fund - Class IA and IB Shares
Objective: high current income and, when consistent with this objective, a
secondary objective of capital growth, by investing 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. See the special considerations for
investments in high yield securities described in the Putnam Variable Trust
prospectus.
Putnam VT New Opportunities Fund - Class IA Shares
Objective: long-term capital appreciation by investing principally in common
stocks of companies in sectors of the economy which Putnam Management believes
possess above average long-term growth potential.
Putnam VT Voyager Fund - Class IB Shares
Objective: capital appreciation by investing primarily in common stocks of
companies that Putnam Management believes have potential for capital
appreciation that is significantly greater than that of market averages.
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 and qualified plans. It is
conceivable that in the future it may be disadvantageous for variable annuity
separate accounts and variable life insurance separate accounts and/or qualified
plans to invest in the available funds simultaneously.
Although American Centurion Life and the funds do not currently foresee any such
disadvantages, the boards of directors or trustees of the appropriate funds will
monitor events in order to identify any material conflicts between such contract
owners, policy owners and qualified plans and to determine what action, if any,
should be taken in response to a conflict. If a board were to conclude that
separate funds should be established for the variable annuity, variable life
insurance and qualified plan separate
<PAGE>
accounts, the variable annuity contract holders would not bear any expenses
associated with establishing separate funds. Please refer to the fund
prospectuses for risk disclosure regarding mixed and shared funding.
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 that 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 contracts, 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 each contract
continues to qualify as an annuity for federal income tax purposes. We reserve
the right to modify each contract as necessary to comply with any new tax laws.
The investment managers for the funds are as follows:
o AIM Variable Insurance Funds - A I M Advisors, Inc.
o American Century Variable Portfolios, Inc. - American Century Investment
Management, Inc.
o GT Global Variable Investment Funds - Chancellor LGT Asset Management, Inc.
o IDS Life Retirement Annuity Mutual Funds - IDS Life. American Express
Financial Corporation is the investment advisor for the IDS Life Retirement
Annuity Mutual Funds. American Express Asset Management International Inc.,
a wholly-owned subsidiary of AEFC, is the sub-investment advisor for IDS
Life International Equity Fund.
o Janus Aspen Series Portfolios - Janus Capital Corporation.
o OCC Accumulation Trust Portfolios - OpCap Advisors.
o Oppenheimer Variable Account Funds - OppenheimerFunds, Inc.
o Putnam Variable Trust - Putnam Investment Management, Inc.
The investment managers and advisors cannot guarantee that the funds will meet
their investment objectives. Please read the funds' prospectuses 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 administrative offices address or telephone number on the
front of this prospectus.
<PAGE>
The fixed account
Purchase payments also may 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 will change the interest rate from time to time at our
discretion.
Because of exemptive and exclusionary provisions, interests in the fixed account
have not been registered under the Securities Act of 1933 (1933 Act), nor is the
fixed account registered as an investment company under the 1940 Act.
Accordingly, neither the fixed account nor any interests in it are generally
subject to the provisions of the 1933 or 1940 Acts, and we have been advised
that the staff of the SEC has not reviewed the disclosures in this prospectus
that relate to the fixed account. Disclosures regarding the fixed account,
however, may be subject to certain generally applicable provisions of the
federal securities laws relating to the accuracy and completeness of statements
made in prospectuses.
Buying your annuity
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
a nonqualified annuity or become an annuitant if you are 81 or older (age 76 or
older for qualified annuities).
When you apply, you may select:
o the fixed account and/or subaccount(s) in which you want to invest;
o how you want to make purchase payments;
o the date you want to start receiving annuity payouts (the retirement date);
and
o a beneficiary.
If your application is complete, we will process it and apply your purchase
payment to the fixed account and subaccount(s) you selected within two business
days after we receive it at our Albany home office. If your application is
accepted, we will send you a contract. If we cannot accept your application
within five business 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 after we receive your payments at our Albany home office. 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.
<PAGE>
For nonqualified annuities and Roth IRAs, 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 (except Roth IRAs), to avoid IRS penalty taxes, the
retirement date generally must be:
o on or after the annuitant reaches age 59 1/2; and
o by April 1 of the year following the calendar year when the annuitant
reaches age 701/2.
If you are taking the minimum IRA distribution 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 amounts
Initial payment: $2,000 (We reserve the right to decrease the minimum payment.)
Minimum additional purchase payment(s): $50
Maximum payment(s):........$1,000,000 of cumulative payments (We reserve the
right to increase the maximum payment.)
How to make payments
By letter
Send your check along with your name and contract 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 12203
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
<PAGE>
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.
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.
3. Next, we withdraw purchase payments received eight or more contract years
before the withdrawal and not previously withdrawn. There is no withdrawal
charge on purchase payments received eight or more contract years before
withdrawal.
<PAGE>
4. Finally, if necessary, we withdraw purchase payments received in the seven
contract years before the withdrawal. There is a withdrawal charge on these
payments. We determine your withdrawal charges by multiplying each of these
payments by the applicable withdrawal charge percentage, and then totaling the
withdrawal charges.
The 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
The following is an example of the calculation we would make to determine the
withdrawal charge on a contract with this history:
o The contract date is July 1, 1998 with a contract year of July 1 through
June 30 and with an anniversary date of July 1 each year; and
o We received these payments - $10,000 July 1, 1998, $8,000 Dec. 31, 2004 and
$6,000 Feb. 20, 2006; and
o The owner withdraws the contract for its total withdrawal value of $38,101
on Aug. 5, 2008 and had not made any other withdrawals during that contract
year; and
o The prior anniversary July 1, 2008 contract value was $38,488.
Withdrawal charge Explanation
$0 $3,848.80 is 10% of the prior anniversary contract
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; and
0 $10,000 July 1, 1998 payment was received eight or
more contract years before withdrawal and is
withdrawn without withdrawal charge; and
240 $8,000 Dec. 31, 2004 payment is in its fifth
contract year from receipt, withdrawn with a 3%
withdrawal charge; and
<PAGE>
240 $6,000 Feb. 20, 2006 payment is 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 also will be deducted.
Waiver of withdrawal charge
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;
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.
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. Please remember
that investment performance, expenses and deductions of certain charges affect
accumulation unit value.
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:
<PAGE>
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
Determined by:
o 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 subaccount(s);
o transfers into or out of the variable subaccount(s);
o partial withdrawals;
o withdrawal charges; and/or
o contract administrative charges.
Accumulation unit values will fluctuate due to:
o changes in net asset value of underlying mutual fund(s);
o dividends distributed to the variable subaccount(s);
o capital gains or losses of underlying mutual fund(s);
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, or from the fixed
account to one or more variable subaccounts. There is no charge for dollar-cost
averaging.
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
Amount Accumulation Number of units
Month 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 Sept 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.
Because this strategy involves continuous investing, your success with
dollar-cost averaging will depend upon your willingness to continue to invest
regularly through periods of low price levels. Dollar-cost averaging can be an
effective way to help meet your long-term goals.
* Some restrictions may apply.
Transferring money between subaccounts
You may transfer money from any one subaccount, or the fixed account, to another
before annuity payouts begin. (Certain restrictions apply to transfers involving
the fixed account.) We will process your transfer request at the next close of
business after we receive it. 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 as follows:
o Limit the number of transfers to 12 per contract year; and/or
o Require up to 10 valuation dates between each transfer; and/or
o Limit the maximum transfer amount on any valuation date to $2,000,000;
and/or
<PAGE>
o Upon 30 days written notice, only accept transfer instructions from you and
not from your representative, agent or any person acting under a power of
attorney from you.
We may make these transfer privilege modifications on a uniform basis for all
contractholders in a class, if we determine, in our sole discretion, that the
exercise of transfer rights by one or more contract owners is, or would be, to
the disadvantage of other contract owners.
(For information on transfers after annuity payouts begin, see "Transfer
policies.")
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 certain transfer periods 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.
Two ways to request a transfer or a withdrawal
1 By letter
Send your name, contract number, Social Security number or taxpayer
identification number and signed request for a transfer or withdrawal 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 12203
Minimum amount
Transfers or withdrawals: $500 or entire variable subaccount or fixed account
balance
<PAGE>
Maximum amount
Transfers or withdrawals: Contract value
2 By automated transfers and automated partial withdrawals
Your agent can help you set up automated transfers among your subaccount(s) or
fixed account 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 12 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, semiannually
or annually
Maximum amount
Automated transfers or withdrawals: Contract value (except for automated
transfers from the fixed account)
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 next
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 subaccounts and/or the fixed account in the
same proportion as your value in each 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.
<PAGE>
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.
NOTE: You will be charged a fee if you request express mail delivery.
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 authenticity. If these procedures are followed,
we take no responsibility for the validity of the change.
If you have a nonqualified annuity, you may lose your tax advantages by
transferring, assigning or pledging any part of it. (See "Taxes.")
If you have a qualified annuity, you may not sell, assign, transfer, discount or
pledge your contract as collateral for a loan, or as security for the
performance of an obligation or for any other purpose to any person except
American Centurion Life. However, if the owner is a trust or custodian, or an
employer acting in a similar capacity, ownership of a contract may be
transferred to the annuitant.
Benefits in case of death
Your ACL Personal Portfolio Plus2 contract includes the death benefit described
below.
If you or the annuitant die before annuitization while this contract is in
force, and both you and the annuitant are age 80 or younger on the date of
death, we will pay the beneficiary the greater of:
1. the contract value; or
2. the total purchase payments less any "death benefit adjustment"; or
3. the highest contract value on any prior contract anniversary, plus any
purchase payments paid and less any "death benefit adjustment" since
the contract anniversary.
If either you or the annuitant are age 81 or older on the date of death, we will
pay the beneficiary the contract value.
We calculate the "death benefit adjustment" for any and each partial withdrawal
by multiplying (a) times (b) where:
<PAGE>
(a) is the ratio of the amount of the partial withdrawal to the contract value
on the date of (but prior to) the partial withdrawal; and
(b) is the death benefit on the date of (but prior to) the partial withdrawal.
The result is subtracted from the death benefit otherwise payable had there not
been a partial withdrawal.
Example:
o The owner purchases an annuity contract for $20,000 on January 1, 1999.
o On January 1, 2000 (the first contract anniversary) the contract value has
grown to $24,000.
o On March 1, 2000 the contract value has fallen to $22,000, at which point
the owner takes a $1,500 partial withdrawal, leaving a contract value of
$20,500.
<TABLE>
<CAPTION>
<S> <C>
The death benefit on March 1, 2000 is calculated as follows:
The highest contract value on any prior contract anniversary: $24,000.00
plus any purchase payments paid since that anniversary: +0.00
less any "death benefit adjustment" taken since that anniversary, calculated as:
$1,500 x $24,000 = -1,636.36
------ ---------
$22,000
resulting in a benefit of: $22,363.64
</TABLE>
Your ACL Personal PortfolioSM contract includes the death benefit described
below.
If you or the annuitant die before annuitization while this contract is in
force, and both you and the annuitant were age 75 or younger on the date the
annuity was issued and if all withdrawals you have made from this contract have
been without withdrawal charges, we will pay the beneficiary the greatest 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 annuities where both you and the annuitant were 75 or younger on the date
the annuity was issued and you have made withdrawals subject to withdrawal
charges, we will pay the beneficiary the contract value.
For annuities where either you or the annuitant were 76 or older on the date the
annuity was issued, we will pay the beneficiary the contract value.
Example:
o The owner purchases an annuity contract for $20,000 on January 1, 1999.
<PAGE>
o On June 1, 2004 the owner takes a $1,500 partial withdrawal, leaving a
contract value of $31,500.
o On July 15, 2004 the owner makes an additional payment of $1,000.
o On March 1, 2005 the contract value has fallen to $31,000.
The death benefit on March 1, 2005 is calculated as follows:
<TABLE>
<CAPTION>
<S> <C>
The closest fifth anniversary contract value: $33,000.00
plus any purchase payments paid since that anniversary + 1,000.00
less any partial withdrawals taken since that anniversary: - 1,500.00
----------
for a death benefit of: $32,500.00
</TABLE>
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 any 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; and
o payouts begin no later than one year after death, or other date as
permitted by the Code; 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.
<PAGE>
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 you elect. This
election will determine the length of the payout period to the beneficiary if
the annuitant should die before the elected period has expired. The guaranteed
payout period is calculated from the 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 that you
elect. 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.")
<PAGE>
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 die after annuity payouts begin, any amount payable to
the beneficiary will be provided in the annuity payout plan in effect.
Taxes
Generally, under current law, any increase in your contract value is taxable to
you only when you receive a payout or 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
according to our records. Roth IRAs may grow tax free if you meet certain
distribution requirements.
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 (except Roth IRAs): 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 made
prior to 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.
<PAGE>
Death benefits to beneficiaries: The death benefit under an annuity (except a
Roth IRA) 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. The death benefit under a Roth IRA generally is not taxable as
ordinary income to the beneficiary.
Annuities owned by corporations, partnerships or trusts: For nonqualified
annuities 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 remain tax deferred.
Penalties: If you receive amounts from your contract before reaching age 59 1/2,
you may have to pay a 10% IRS penalty on the amount includable in your ordinary
income. However, this penalty will not apply to any amount received by you or
your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal periodic
payments, made at least annually, over your life or life expectancy (or
joint lives or life expectancies of you and your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except for
qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if you 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 your annual tax return.
If the payment is part of an annuity payout plan, the amount of withholding
generally is computed using payroll tables. You may 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 may 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 have provided us with a valid Social Security number or
taxpayer identification number, you may elect not to have this withholding
occur.
Some states also may impose withholding requirements similar to the federal
withholding described above. If this should be the case, any payment from which
federal withholding is deducted also may 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.
<PAGE>
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 for income tax purposes, 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. 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
Each contract is intended to qualify as an annuity for federal income tax
purposes. To that end, the provisions of the contracts 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 contracts to reflect any
clarifications that may be needed or are appropriate to maintain such
qualification or to conform the contracts to any applicable changes in the tax
qualification requirements. We will send you a copy of any such amendments.
Voting rights
As a contract owner with investments in the variable 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
o divided by 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
<PAGE>
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 mutual 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,
another registered open-end management investment company may be substituted for
mutual fund shares held in the subaccount(s) when American Centurion Life
believes it would be in the best interest of persons having voting rights under
the contract. American Centurion Life also reserves the right to change the
mutual funds in which the subaccounts invest and to create new subaccounts that
invest in additional funds.
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 Inc. These commissions will not be more than 7.5% of purchase
payments received on the contracts.
From time to time, American Centurion Life will pay or permit other promotional
incentives, in cash or credit or other compensation.
About American Centurion Life
The annuities are 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
<PAGE>
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.
Other subsidiaries provide investment management and related services for
pension, profit-sharing, employee savings and endowment funds of businesses and
institutions.
Year 2000
The Year 2000 issue is the result of computer programs having been written using
two digits rather than four to define a year. Any programs that have
time-sensitive software may recognize a date using "00" as the year 1900 rather
than 2000. This could result in the failure of major systems or miscalculations,
which could have a material impact on the operations of the variable account.
The variable account has no computer systems of its own but is dependent upon
the systems maintained by AEFC and certain other third parties.
A comprehensive review of AEFC's computer systems and business processes has
been conducted to identify the major systems that could be affected by the Year
2000 issue. Steps are being taken to resolve any potential problems including
modification to existing software and the purchase of new software. These
measures are scheduled to be completed and tested on a timely basis. AEFC's goal
is to complete internal remediation and testing of each system by the end of
1998 and to continue compliance efforts through 1999. The Year 2000 readiness of
unaffiliated investment managers and other third parties whose system failures
could have an impact on the variable account's operations currently is being
evaluated. The potential materiality of any such impact is not known at this
time.
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>
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 Portfolio Plus2 / ACL Personal PortfolioSM
_______ AIM Variable Insurance Funds, Inc.
_______ American Century Variable Portfolios, Inc.
_______ GT Global Variable Investment Funds
_______ IDS Life Retirement Annuity Mutual Funds
_______ Janus Aspen Series Portfolios
_______ OCC Accumulation Trust Portfolios
_______ Oppenheimer Variable Account Funds
_______ Putnam Variable Trust - Class IA Shares
_______ Putnam Variable Trust - Class IB Shares
Mail your request to:
American Centurion Life Assurance Company
20 Madison Avenue Extension
P.O. Box 5555
Albany, NY 12205-0555
800-504-0469
American Centurion Life will mail your request to:
Your name________________________________________________________
Address__________________________________________________________
City__________________State_____________________Zip _____________
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
for
ACL PERSONAL PORTFOLIO PLUS2
and
ACL PERSONAL PORTFOLIOSM
ACL VARIABLE ANNUITY ACCOUNT 2
Oct. __, 1998
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 Oct. __, 1998, is not a
prospectus. It should be read together with the prospectus dated Oct. __, 1998,
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
800-504-0469
<PAGE>
TABLE OF CONTENTS
Performance Information....................................................3
Calculating Annuity Payouts................................................6
Rating Agencies............................................................7
Principal Underwriter......................................................8
Independent Auditors.......................................................8
Saving for Retirement......................................................8
Prospectus.................................................................8
Financial Statements
.........- American Centurion Life Assurance Company
<PAGE>
PERFORMANCE INFORMATION
The following performance figures are calculated on the basis of historical
performance of each fund. We show performance from the commencement date of the
funds as if the annuity had existed at that time. No information is provided for
the subaccounts because they had no activity in 1997.
Calculation of Yield for the Subaccount investing in IDS Life Moneyshare Fund
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:
Compound Yield =[(Base Period Return + 1) x (365/7)] - 1
Calculation of Yield for the subaccounts investing in income funds
For the subaccounts investing in income funds quotations of yield will be based
on all investment income earned during a particular 30-day period, less expenses
accrued during the period (net investment income) and will be computed by
dividing net investment income per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the following
formula:
YIELD = 2[(a-b + 1)6 - 1]
cd
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.
<PAGE>
Calculation of Average Annual Total Return
Quotations of average annual total return for a subaccount will be expressed in
terms of the average annual compounded rate of return of a hypothetical
investment in the annuity over a period of one, five and 10 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
10-year (or other) period at the end of the one,
five-, or 10-year (or other) period (or fractional
portion thereof)
<PAGE>
<TABLE>
<CAPTION>
Average Annual Total Return For Period Ended Dec. 31, 1997
Average Annual Total Return with Withdrawal
Performance Since
Commencement of the Fund**
Since
Commencement
Subaccount investing in: 1 Year 5 Year 10 Year (Fund)
- -----------------------
<S> <C> <C> <C> <C>
AIM V.I.
Growth and Income Fund (5/94)* 16.82% -- -- 19.68%
International Equity Fund (5/93) -1.37% -- -- 10.47%
Value Fund (5/93) 14.87% -- -- 17.45%
AMERICAN CENTURY
VP Income and Growth (10/97) -- -- -- 0.72%
VP Value (5/96) 17.22% -- -- 15.29%
GT GLOBAL
Variable Latin America Fund (2/93) 5.76% -- -- 9.13%
Variable New Pacific Fund (2/93) -45.46% -- -- -5.39%
IDS LIFE
Aggressive Growth Fund (1/92) 3.90% 10.66% -- 10.42%
Capital Resource Fund (10/81) 15.24% 10.17% 12.92% --
Growth Dimensions Fund (4/96) 15.46% -- -- 17.20%
International Equity Fund (1/92) -5.27% 8.19% -- 6.49%
Managed Fund (4/86) 10.67% 10.95% 11.91% --
Moneyshare Fund (10/81) -3.02% 2.20% 3.65% --
Special Income Fund (10/81) 0.34% 7.40% 7.96% --
JANUS ASPEN SERIES
Balanced Portfolio (9/93) 13.28% -- -- 13.07%
Worldwide Growth Portfolio (9/93) 13.33% -- -- 20.05%
OCC ACCUMULATION TRUST
Equity Portfolio (8/88) 17.74% 17.27% -- 16.22%
Managed Portfolio (8/88) 13.42% 17.60% -- 18.61%
Small Cap Portfolio (8/88) 13.42% 12.40% -- 14.05%
U.S. Government Income Portfolio (1/95) -1.29% -- -- 4.16%
OPPENHEIMER VARIABLE ACCOUNT
Growth Fund (4/85) 17.80% 16.47% 14.53% --
High Income Fund (4/86) 3.56% 11.62% 12.36% --
PUTNAM VT - Class IA Shares
Diversified Income Fund (9/93) -0.99% -- -- 5.32%
Growth and Income Fund (2/88) 15.25% 16.73% -- 14.30%
High Yield Fund (2/88) 5.58% 10.45% -- 9.82%
New Opportunities Fund (5/94) 14.40% -- -- 21.14%
PUTNAM VT - Class IB Shares
Diversified Income Fund (9/93) -1.08% -- -- 5.05%
Growth and Income Fund (2/88) 15.12% 16.50% -- 14.63%
High Yield Fund (2/88) 5.47% 10.23% -- 9.55%
Voyager Fund (2/88) 17.45% 16.89% -- 16.03%
* (Commencement date of the fund)
** Current applicable charges deducted from fund performance include a 1.25%
mortality and expense risk fee and a 0.15% variable account administrative
charge.
<PAGE>
Average Annual Total Return without Withdrawal
Performance Since
Commencement of the Fund**
Since
Commencement
Subaccount investing in: 1 Year 5 Year 10 Year (Fund)
- -----------------------
AIM V.I.
Growth and Income Fund (5/94)* 23.82% -- -- 20.37%
International Equity Fund (5/93) 5.30% -- -- 10.92%
Value Fund (5/93) 21.87% -- -- 17.81%
AMERICAN CENTURY
VP Income and Growth (10/97) -- -- -- 7.54%
VP Value (5/96) 24.22% -- -- 21.29%
GT GLOBAL
Variable Latin America Fund (2/93) 12.76% -- -- 9.57%
Variable New Pacific Fund (2/93) -42.11% -- -- -4.90%
IDS LIFE
Aggressive Growth Fund (1/92) 10.90% 11.06% -- 10.63%
Capital Resource Fund (10/81) 22.24% 10.58% 12.92% --
Growth Dimensions Fund (4/96) 22.46% -- -- 20.62%
International Equity Fund (1/92) 1.11% 8.63% -- 6.74%
Managed Fund (4/86) 17.67% 11.34% 11.91% --
Moneyshare Fund (10/81) 3.52% 2.75% 3.65% --
Special Income Fund (10/81) 7.14% 7.85% 7.96% --
JANUS ASPEN SERIES
Balanced Portfolio (9/93) 20.28% -- -- 13.54%
Worldwide Growth Portfolio (9/93) 20.33% -- -- 20.43%
OCC ACCUMULATION TRUST
Equity Portfolio (8/88) 24.74% 17.59% -- 16.22%
Managed Portfolio (8/88) 20.42% 17.91% -- 18.61%
Small Cap Portfolio (8/88) 20.42% 12.77% -- 14.05%
U.S. Government Income Portfolio (1/95) 5.39% -- -- 5.72%
OPPENHEIMER VARIABLE ACCOUNT
Growth Fund (4/85) 24.80% 16.79% 14.53% --
High Income Fund (4/86) 10.56% 12.01% 12.36% --
PUTNAM VT - Class IA Shares
Diversified Income Fund (9/93) 5.71% -- -- 5.91%
Growth and Income Fund (2/88) 22.25% 17.05% -- 14.30%
High Yield Fund (2/88) 12.58% 10.85% -- 9.82%
New Opportunities Fund (5/94) 21.40% -- -- 21.81%
PUTNAM VT - Class IB Shares
Diversified Income Fund (9/93) 5.61% -- -- 5.64%
Growth and Income Fund (2/88) 22.12% 16.83% -- 14.63
High Yield Fund (2/88) 12.47% 10.64% -- 9.55%
Voyager Fund (2/88) 24.45% 17.21% -- 16.03%
*(Commencement date of the fund)
**Current applicable charges deducted from fund performance include a 1.25%
mortality and expense risk fee and a 0.15% variable account administrative
charge.
</TABLE>
<PAGE>
Aggregate Total Return
Aggregate total return represents the cumulative change in value of an
investment for a given period (reflecting change in a subaccount's accumulation
unit value) and is computed by the following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one-, five-, or
10-year (or other) period at the end of the one-,
five-, or 10-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 10- 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.
Total return figures reflect the deduction of all applicable charges including
the contract administrative charge, the variable account administrative charge,
and mortality and expense risk fee.
Performance of the subaccount may be quoted or compared to rankings, yields, or
returns or used in variable annuity accumulation or settlement illustrations 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; then
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.
<PAGE>
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.
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:
This value is determined by:
o 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 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
<PAGE>
o the annuity payout table we use will be the one in effect at the time
you choose to begin your annuity payouts. The values in the table will
be equal to or greater than the table in your contract.
RATING AGENCIES
The following chart reflects the ratings given to American Centurion Life by
independent rating agencies. These agencies evaluate the financial soundness and
claims-paying ability of insurance companies based on a number of different
factors. This information does not relate to the management or performance of
the variable subaccounts of the annuities. 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 financial statements of American Centurion Life Assurance Company (a
wholly-owned subsidiary of IDS Life Insurance Company) as of December 31, 1997
and 1996, and for each of the three years in the period ended December 31, 1997
appearing in this Statement of Additional Information 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, 1994, p. 88.
PROSPECTUS
The prospectus, dated Oct. __, 1998, is hereby incorporated in this SAI by
reference.
<PAGE>
PART C.
Item 24. Financial Statements and Exhibits
(a) Financial Statements included in Part B of this Registration
Statement:
The audited financials will be filed by amendment.
(b) Exhibits:
1. Certificate establishing the ACL Variable Annuity Account 2 dated
December 1, 1995, filed electronically as Exhibit 1 to Pre-Effective
Amendment No. 1 to Registration Statement No. 333-00519, filed on or
about February 5, 1997, is incorporated herein by reference.
2. Not applicable.
3. Form of Variable Annuity Distribution Agreement filed electronically
as Exhibit 3 to Pre-Effective Amendment No. 2 to Registration
Statement No. 333-00519, filed on or about April 30, 1997, is
incorporated herein by reference.
4. Form of Flexible Payment Deferred Annuity Contract (form 45054), filed
electronically as Exhibit 4.1 to Pre-Effective Amendment No. 2 to
Registration Statement No. 333-00519, filed on or about April 30,
1997, is incorporated herein by reference.
5. Application for American Centurion Life Variable Annuity (form 45055),
filed electronically as Exhibit 5.1 to Pre-Effective Amendment No. 2
to Registration Statement No. 333-00519, filed on or about April 30,
1997, is incorporated herein by reference.
6.1 Amended and Restated By-Laws of American Centurion Life Assurance
Company, filed electronically as Exhibit 6.1 to Pre-Effective
Amendment No. 1 to Registration Statement No. 333-00519, filed on or
about February 5, 1997, is incorporated herein by reference.
6.2 Amended and Restated Articles of Incorporation of American Centurion
Life Assurance Company, filed electronically as Exhibit 6.2 to
Pre-Effective Amendment No. 1 to Registration Statement No. 333-00519,
filed on or about February 5, 1997, is incorporated herein by
reference.
6.3 Emergency By-Laws of American Centurion Life Assurance Company, filed
electronically as Exhibit 6.3 to Pre-Effective Amendment No. 1 to
Registration Statement No. 333-00519, filed on or about February 5,
1997, is incorporated herein by reference.
7. Not applicable.
8.1 Copy of Participation Agreement among Putnam Variable Trust, Putnam
Mutual Funds Corp. and American Centurion Life Assurance Company,
dated April 30, 1997, filed electronically as Exhibit 8.1 to
Pre-Effective Amendment No. 3 to Registration Statement No. 333-00519,
is incorporated herein by reference.
<PAGE>
8.2 Copy of Participation Agreement by and among OCC Accumulation Trust
and American Centurion Life Assurance Company and OCC Distributors,
dated September 17, 1997, filed electronically as Exhibit 8.2 to
Pre-Effective Amendment No. 3 to Registration Statement No. 333-00519,
is incorporated herein by reference.
8.3 Copy of Participation Agreement among American Centurion Life
Assurance Company and GT Global Variable Investment Trust and GT
Global Variable Investment Series and GT Global, Inc., dated May 30,
1997, filed electronically as Exhibit 8.3 to Pre-Effective Amendment
No. 3 to Registration Statement No. 333-00519, is incorporated herein
by reference.
9. Opinion of counsel and consent to its use as to the legality of the
securities being registered will be filed by amendment.
10. Consent of Independent Auditors will be filed by amendment.
11. Financial Statement Schedules and Report of Independent Auditors will
be filed by amendment.
Financial Statement Schedules:
Schedule I - Consolidated Summary Of Investments Other Than
Investments In Related Parties
Schedule IV - Reinsurance Report of Independent Auditors dated
February 5, 1998.
All other schedules to the Financial Statements required by Article 7
of Regulation S-X are not required under the related instructions or
are inapplicable and, therefore, have been omitted.
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 as Exhibit 13 to Pre-Effective Amendment No. 1 to
Registration Statement No. 333-00519, filed on or about February 5,
1997, is incorporated herein by reference.
14. Financial Data Schedule will be filed by amendment.
15.1 Power of Attorney to sign Amendments to this Registration Statement,
dated March 25, 1997, filed electronically as Exhibit 14.2 to
Pre-Effective Amendment No. 2 to Registration Statement No. 333-00519,
filed on or about April 30, 1997, is incorporated herein by reference.
15.2 Power of Attorney to sign Amendments to this Registration Statement,
dated April 8, 1998, filed electronically as Exhibit 15.2 to
Post-Effective Amendment No. 1 to Registration Statement No 333-00519,
filed on or about April 30, 1998, is incorporated herein by reference.
<PAGE>
<TABLE>
<CAPTION>
Item 25. Directors and Officers of the Depositor (American Centurion Life Assurance Company)
<S> <C> <C>
Name Principal Business Address Positions and Offices with
Depositor
- ------------------------------------ ---------------------------------------- -----------------------------------
Doris A. Anfinson IDS Tower 10 Vice President
Minneapolis, MN 55440
Robert C. Auriema Technical Consultants Ltd. Director
Bayview Tower
Apt. 8G
80 Bay Street Landing
Staten Island, NY 10301
Maureen A. Buckley IDS Tower 10 Chief Administrative Officer and
Minneapolis, MN 55440 Consumer Affairs Officer
Douglas L. Forsberg IDS Tower 10 Director
Minneapolis, MN 55440
Clarence E. Galston IDS Tower 10 Director
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
Jeffrey S. Horton IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Richard W. Kling IDS Tower 10 Director
Minneapolis, MN 55440
Bruce A. Kohn IDS Tower 10 Counsel and Assistant Secretary
Minneapolis, MN 55440
David M. Kuplic IDS Tower 10 Vice President-Investments
Minneapolis, MN 55440
Eric L. Marhoun IDS Tower 10 General Counsel and Secretary
Minneapolis, MN 55440
Sarah A. Mealey IDS Tower 10 Vice President-Variable Product
Minneapolis, MN 55440 Development
Edward J. Muhl IDS Tower 10 Director
Minneapolis, MN 55440
Kenneth W. Nelson Tech Products, Inc. Director
15 Beach Street
Suite 304
Staten Island, NY 10304
Stuart A. Sedlacek IDS Tower 10 Director, Chairman and President
Minneapolis, MN 55440
<PAGE>
Item 25. Directors and Officers of the Depositor (American Centurion Life Assurance Company)
(continued)
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 Guerdon D. Smith & Company Director
P.O. Box 91739
Santa Barbara, CA 93190-1739
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant
American Centurion Life Assurance Company is a wholly-owned subsidiary
of IDS Life Insurance Company which is a wholly-owned subsidiary of
American Express Financial Corporation. American Express Financial
Corporation is a wholly-owned subsidiary of American Express Company
(American Express).
The following list includes the names of major subsidiaries of
American Express.
<TABLE>
<CAPTION>
<S> <C>
Jurisdiction of
Name of Subsidiary Incorporation
I. Travel Related Services
American Express Travel Related Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
<PAGE>
Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant (Con't)
III. Companies engaged in Financial Services
Advisory Capital Strategies Group Inc. Minnesota
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Asset Management Group Inc. Minnesota
American Express Asset Management International Inc. Delaware
American Express Asset Management International (Japan) Ltd. Japan
American Express Asset Management Ltd. England
American Express Client Service Corporation Minnesota
American Express Corporation Delaware
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Minnesota
Delaware
American Express Insurance Agency of Arizona Inc. Arizona
American Express Insurance Agency of Idaho Inc. Idaho
American Express Insurance Agency of Nevada Inc. Nevada
American Express Insurance Agency of Oregon Inc. Oregon
American Express Minnesota Foundation Minnesota
American Express Property Casualty Insurance Agency of Kentucky Inc. Kentucky
American Express Property Casualty Insurance Agency of Maryland Inc. Maryland
American Express Property Casualty Insurance Agency of Pennsylvania Inc. Pennsylvania
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Futures 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 New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
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
North Dakota Public Employee Payment Company Minnesota
</TABLE>
<PAGE>
Item 27. Number of Contract owners
As of June 30, 1998, there were 55 contract owners of qualified
contracts and there were 149 owners of non-qualified contracts.
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 directors, 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>
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., Growth Trust; Growth and Income Trust;
Income Trust, Tax-Free Income Trust, World Trust and IDS Certificate
Company.
(b) As to each director, officer or partner of the principal underwriter:
<TABLE>
<CAPTION>
Name and Principal Business Address Position and Offices with Positions with Offices with
Underwriter Registrant
- ----------------------------------------- ------------------------------------ -----------------------------
<S> <C> <C>
Ronald. G. Abrahamson Vice President - Service Quality None
IDS Tower 10 and Reengineering
Minneapolis, MN 55440
Douglas A. Alger Senior Vice President - Human None
IDS Tower 10 Resources
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President - Investment Vice President
IDS Tower 10 Operations
Minneapolis, MN 55440
Ward D. Armstrong Vice President - American Express None
IDS Tower 10 Retirement Services
Minneapolis, MN 55440
John M. Baker Vice President - Plan Sponsor None
IDS Tower 10 Services
Minneapolis, MN 55440
Joseph M. Barksy, III Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Timothy V. Bechtold Vice President - Risk Management None
IDS Tower 10 Products
Minneapolis, MN 55440
John D. Begley Group Vice President - Ohio/Indiana None
Suite 100
7760 Olentangy River Rd.
Columbus, OH 43235
Brent L. Bisson Group Vice President - Los Angeles None
Suite 900 Metro
E. Westside Twr
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President - Mature Market None
IDS Tower 10 Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President - New Jersey None
IDS Tower 10
Minneapolis, MN 55440
Bruce J. Bordelon Group Vice President - Gulf States None
Galleria One Suite 1900
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President - Northwest None
Suite 200
West 111 North River Dr.
Spokane, WA 99201
Douglas W. Brewers Vice President - Sales Support None
IDS Tower 10
Minneapolis, MN 55440
Karl J. Breyer Senior Vice President - Law and None
IDS Tower 10 Corporate Affairs
Minneapolis, MN 55440
Daniel J. Candura Vice President - Marketing Support None
IDS Tower 10
Minneapolis, MN 55440
Cynthia M. Carlson Vice President - American Express None
IDS Tower 10 Securities Services
Minneapolis, MN 55440
Mark W. Carter Senior Vice President and Chief None
IDS Tower 10 Marketing Officer
Minneapolis, MN 55440
James E. Choat Senior Vice President - None
IDS Tower 10 Institutional Products Group
Minneapolis, MN 55440
Kenneth J. Ciak Vice President and General Manager None
IDS Property Casualty - DS Property Casualty
1400 Lombardi Avenue
Green Bay, WI 54304
Paul A. Connolly Vice President - Advisor Staffing, None
IDS Tower 10 Training and Support
Minneapolis, MN 55440
Roger C. Corea Group Vice President - Upstate New None
290 Woodcliff Drive York
Fairport, NY 14450
Henry J. Cormier Group Vice President - Connecticut None
Commerce Center One
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 General Counsel None
IDS Tower 10
Minneapolis, MN 55440
Regenia David Vice President - Systems Services None
IDS Tower 10
Minneapolis, MN 55440
Luz Maria Davis Vice President - Communications None
IDS Tower 10
Minneapolis, MN 55440
Scott M. DiGiammarino Group Vice President - None
Suite 500 Washington/Baltimore
8045 Leesburg Pike
Vienna, VA 22182
Bradford L. Drew Group Vice President - Eastern None
Two Datran Center Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
James P. Egge Group Vice President - Western None
4305 South Louise, Suite 202 Iowa, Nebraska, Dakotas
Sioux Falls, SD 57103
Gordon L. Eid Senior Vice President, General None
IDS Tower 10 Counsel and Chief Compliance
Minneapolis, MN 55440 Officer
Robert M. Elconin Vice President - Government None
IDS Tower 10 Relations
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President - None
One Old Mill Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Phillip W. Evans, Group Vice President - Rocky None
Suite 600 Mountain
6985 Union Park Center
Midvale, UT 84047-4177
Louise P. Evenson Group Vice President - San None
Suite 200 Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
Gordon M. Fines Vice President - Mutual Fund None
IDS Tower 10 Equity Investments
Minneapolis, MN 55440
Douglas L. Forsberg Vice President - Institutional None
IDS Tower 10 Products Group
Minneapolis, MN 55440
Jeffrey P. Fox Vice President and Corporate None
IDS Tower 10 Controller
Minneapolis, MN 55440
William P. Fritz Group Vice President - Northern None
Suite 160 Missouri
12855 Flushing Meadows Dr.
St. Louis, MO 63131
Carl W. Gans Group Vice President - Twin City None
8500 Tower Suite 1770 Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
David A. Hammer Vice President and Marketing None
IDS Tower 10 Controller
Minneapolis, MN 55440
Teresa A. Hanratty Group Vice President - Northern None
Suites 6&7 New England
169 South River Road
Bedford, NH 03110
Robert L. Harden Group Vice President - Boston Metro None
Two Constitution Plaza
Boston, MA 02129
Lorraine R. Hart Vice President - Insurance None
IDS Tower 10 Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President - Assured Assets None
IDS Tower 10 Product Development and Management
Minneapolis, MN 55440
Brian M. Heath Group Vice President - North Texas None
Suite 150
801 E. Campbell Road
Richardson, TX 75081
Janis K. Heaney Vice President - Incentive None
IDS Tower 10 Management
Minneapolis, MN 55440
James G. Hirsh Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Jon E. Hjelm Group Vice President - Rhode None
310 Southbridge Street Island/Central - Western
Auburn, MA 01501 Massachusetts
David J. Hockenberry Group Vice President - Eastern None
30 Burton Hills Blvd. Tennessee
Suite 175
Nashville, TN 37215
Jeffrey S. Horton Vice President and Treasurer None
IDS Tower 10
Minneapolis, MN 55440
David R. Hubers Chairman, President and Chief Board member
IDS Tower 10 Executive Officer
Minneapolis, MN 55440
Martin G. Hurwitz Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
James M. Jensen Vice President - Insurance Product None
IDS Tower 10 Development and Management
Minneapolis, MN 55440
Marietta L. Johns Senior Vice President - Field None
IDS Tower 10 Management
Minneapolis, MN 55440
Nancy E. Jones Vice President - Business None
IDS Tower 10 Development
Minneapolis, MN 55440
James E. Kaarre Vice President - Marketing None
IDS Tower 10 Promotions
Minneapolis, MN 55440
Matthew N. Karstetter Vice President - Investment None
IDS Tower 10 Accounting
Minneapolis, MN 55440
Linda B. Keene Vice President - Market Development None
IDS Tower 10
Minneapolis, MN 55440
G. Michael Kennedy Vice President - Investment None
IDS Tower 10 Services and Investment Research
Minneapolis, MN 55440
Susan D. Kinder Senior Vice President - None
IDS Tower 10 Distribution Services
Minneapolis, MN 55440
Brian Kleinberg Executive Vice President - None
IDS Tower 10 Financial Direct
Minneapolis, MN 55440
Richard W. Kling Senior Vice President - Risk Director
IDS Tower 10 Management Products
Minneapolis, MN 55440
Paul F. Kolkman Vice President - Actuarial Finance None
IDS Tower 10
Minneapolis, MN 55440
Claire Kolmodin Vice President - Service Quality None
IDS Tower 10
Minneapolis, MN 55440
David S. Kreager Group Vice President - Greater None
Suite 108 Michigan
Trestle Bridge V
5126 Lovers Lane
Kalamazoo, MI 49002
Steven C. Kumagai Director and Senior Vice President None
IDS Tower 10 - Field Management and Business
Minneapolis, MN 55440 Systems
Mitre Kutanovski Group Vice President - Chicago None
Suite 680 Metro
8585 Broadway
Merrillville, IN 48410
Edward Labenski Jr. Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Kurt A. Larson Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Lori J. Larson Vice President - Brokerage and None
IDS Tower 10 Direct Services
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and Chief U.S. None
IDS Tower 10 Economist
Minneapolis, MN 55440
Peter A. Lefferts Senior Vice President - Corporate None
IDS Tower 10 Strategy and Development
Minneapolis, MN 55440
Douglas A. Lennick Director and Executive Vice None
IDS Tower 10 President - Private Client Group
Minneapolis, MN 55440
Mary J. Malevich Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Fred A. Mandell Vice President - Field Marketing None
IDS Tower 10 Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President - Pittsburgh None
Suite 650 Metro
5700 Corporate Drive
Pittsburgh, PA 15237
Thomas W. Medcalf Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Paula R. Meyer Vice President - Assured Assets None
IDS Tower 10
Minneapolis, MN 55440
William P. Miller Vice President and Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
James A. Mitchell Executive Vice President - None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
Pamela J. Moret Vice President - Variable Assets None
IDS Tower 10
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President - Central None
Suite 200 California/Western Nevada
3500 Market Street
Camp Hill, NJ 17011
Barry J. Murphy Senior Vice President - Client None
IDS Tower 10 Service
Minneapolis, MN 55440
Mary Owens Neal Vice President - Mature Market None
IDS Tower 10 Segment
Minneapolis, MN 55440
Thomas V. Nicolosi Group Vice President - New York None
Suite 220 Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
Michael J. O'Keefe Vice President - Advisory Business None
IDS Tower 10 Systems
Minneapolis, MN 55440
James R. Palmer Vice President - Taxes None
IDS Tower 10
Minneapolis, MN 55440
Carla P. Pavone Vice President - Compensation and None
IDS Tower 10 Field Administration
Minneapolis, MN 55440
Thomas P. Perrine Senior Vice President - Group None
IDS Tower 10 Relationship Leader / AXP
Minneapolis, MN 55440 Technologies Financial Services
Susan B. Plimpton Vice President - Marketing Services None
IDS Tower 10
Minneapolis, MN 55440
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 Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
James M. Punch Vice President - Special Projects None
IDS Tower 10
Minneapolis, MN 55440
Frederick C. Quirsfeld Senior Vice President - Fixed None
IDS Tower 10 Income
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President - Southern None
Suite 800 Texas
Arboretum Plaza One
9442 Capital of Texas Hwy. N
Austin, TX 78759
ReBecca K. Roloff Senior Vice President - Field None
IDS Tower 10 Management and Financial Advisor
Minneapolis, MN 55440 Service
Stephen W. Roszell Senior Vice President - None
IDS Tower 10 Institutional
Minneapolis, MN 55440
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 General Auditor None
IDS Tower 10
Minneapolis, MN 55440
Erven A. Samsel Senior Vice President - Field None
45 Braintree Hill Park 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
William G. Scholz Group Vice President - Arizona/Las None
Suite 205 Vegas
7333 E. Doubletree Ranch Rd
Scottsdale, AZ 85258
Stuart A. Sedlacek Senior Vice President and Chief Director, Chairman and
IDS Tower 10 Financial Officer President
Minneapolis, MN 55440
Donald K. Shanks Vice President - Property Casualty None
IDS Tower 10
Minneapolis, MN 55440
F. Dale Simmons Vice President - Senior Portfolio None
IDS Tower 10 Manager, Insurance Investments
Minneapolis, MN 55440
Judy P. Skoglund Vice President - Quality and None
IDS Tower 10 Service Support
Minneapolis, MN 55440
William A. Smith Vice President and Controller - None
IDS Tower 10 Private Client Group
Minneapolis, MN 55440
James B. Solberg Group Vice President - Eastern None
466 Westdale Mall Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President - Geographic None
IDS Tower 10 Service Teams
Minneapolis, MN 55440
Paul J. Stanislaw Group Vice President - Southern None
Suite 1100 California
Two Park Plaza
Irvine, CA 92714
Lisa A. Steffes Vice President - Card Member None
IDS Tower 10 Initiatives
Minneapolis, MN 55440
Lois A. Stilwell Group Vice President - Outstate None
Suite 433 Minnesota Area/North
9900 East Bren Road Dakota/Western Wisconsin
Minnetonka, MN 55343
William A. Stoltzmann Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
James J. Strauss Vice President and General Auditor None
IDS Tower 10
Minneapolis, MN 55440
Jeffrey J. Stremcha Vice President - Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Barbara Stroup Stewart Vice President - Channel None
IDS Tower 10 Development
Minneapolis, MN 55440
Craig P. Taucher Group Vice President - None
Suite 150 Orlando/Jacksonville
4190 Belfort Road
Jacksonville, FL 32216
Neil G. Taylor Group Vice President - None
Suite 425 Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
Peter S. Velardi Group Vice President - None
Suite 180 Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice President - Denver/Salt None
Suite 100 Lake City/Albuquerque
Stanford Plaza II
7979 East Tufts Ave. Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Donald F. Weaver Group Vice President - Greater None
3500 Market Street, Suite 200 Pennsylvania
Camp Hill, PA 17011
Norman Weaver Jr. Senior Vice President - Field None
1010 Main St., Suite 2B Management
Huntington Beach, CA 92648
Michael L. Weiner Vice President - Tax Research and None
IDS Tower 10 Audit
Minneapolis, MN 55440
Lawrence J. Welte Vice President - Investment None
IDS Tower 10 Administration
Minneapolis, MN 55440
Jeffrey M. Welter Vice President - Equity and Fixed None
IDS Tower 10 Income Trading
Minneapolis, MN 55440
Thomas L. White Group Vice President - Cleveland None
Suite 200 Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President - Virginia None
Suite 250
3951 Westerre Parkway
Richmond, VA 23233
William J. Williams Group Vice President - Western None
Two North Tamiami Trail Florida
Suite 702
Sarasota, FL 34236
Edwin M. Wistrand Vice President and Assistant None
IDS Tower 10 General Counsel
Minneapolis, MN 55440
Michael D. Wolf Vice President - Senior Portfolio None
IDS Tower 10 Manager
Minneapolis, MN 55440
Michael R. Woodward Senior Vice President - Field None
32 Ellicott St. Management
Suite 100
Batavia, NY 14020
</TABLE>
<TABLE>
<CAPTION>
Item 29(c).
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>
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
in the prospectus that the applicant can remove to send for
a Statement of Additional Information.
(c) Registrant undertakes to deliver any Statement of Additional
Information and any financial statements required to be made
available under this Form promptly upon written or oral
request to American Centurion 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>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, American Centurion Life Assurance Company, on behalf of the Registrant,
has duly caused this Amendment to its Registration Statement to be signed on its
behalf by the undersigned, thereunto duly authorized in the City of Minneapolis,
and State of Minnesota, on the 25th day of August, 1998.
ACL VARIABLE ANNUITY ACCOUNT 2
(Registrant)
By American Centurion Life Assurance Company
(Depositor)
By /s/ Stuart A. Sedlacek*
Stuart A. Sedlacek
Chairman and President
As required by the Securities Act of 1933, this Amendment to the Registration
Statement has been signed by the following persons in the capacities indicated
on the 25th day of August, 1998.
Signature Title
/s/ Robert C. Auriema* Director
Robert C. Auriema
/s/ Douglas L. Forsberg* Director
Douglas L. Forsberg
/s/ Clarence E. Galston* Director
Clarence E. Galston
/s/ Jay C. Hatlestad* Vice President and Controller
Jay C. Hatlestad
/s/ Robert A. Hatton* Director
Robert A. Hatton
/s/ Jeffrey S. Horton** Vice President
Jeffrey S. Horton and Treasurer
/s/ Richard W. Kling* Director
Richard W. Kling
<PAGE>
Signature Title
Director
Edward J. Muhl
/s/ Kenneth W. Nelson* Director
Kenneth W. Nelson
/s/ Stuart A. Sedlacek* Chairman and
Stuart A. Sedlacek President
/s/ Anne L. Segal* Director
Anne L. Segal
/s/ Guerdon D. Smith* Director
Guerdon D. Smith
*Signed pursuant to Power of Attorney, dated March 25, 1997, filed
electronically as Exhibit 14.2 to Pre-Effective Amendment No. 2 to Registration
Statement No. 333-00519, incorporated herein by reference.
**Signed pursuant to Power of Attorney, dated April 9, 1998, filed
electronically as Exhibit 15.2 to Post-Effective Amendment No. 1 to Registration
Statement No. 333-00519, incorporated herein by reference..
By:________________________________
Mary Ellyn Minenko
<PAGE>
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 2
TO REGISTRATION STATEMENT NO. 333-00519
This Amendment to the Registration Statement is comprised of the following
papers and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
