<PAGE>
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 X
Pre-Effective Amendment No.
Post-Effective Amendment No.
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940 X
Amendment No.
IDS LIFE OF NEW YORK FLEXIBLE PORTFOLIO ANNUITY ACCOUNT
___________________________________________________________________
(Exact Name of Registrant)
IDS Life Insurance Company of New York
___________________________________________________________________
(Name of Depositor)
20 Madison Avenue Extension, Albany, New York 12203
___________________________________________________________________
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-3678
Mary Ellyn Minenko, IDS Tower 10, Minneapolis, MN 55440-0010
___________________________________________________________________
(Name and Address of Agent for Service)
It is proposed that this filing will become effective: As soon as
practicable.
DECLARATION REQUIRED BY RULE 24f-2(a)(1)
An indefinite number of shares of securities of the Registrant is
being registered by this Registration Statement.
The Registrant hereby amends the Registration Statement under the
Securities Act of 1933 on such date or dates as may be necessary to
delay its effective date until the Registrant shall file a further
amendment which specifically states that this Registration
Statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the
Registration Statement shall become effective on such date as the
Commission acting pursuant to Section 8(a) may determine.<PAGE>
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<TABLE><CAPTION>
CROSS REFERENCE SHEET
Cross reference sheet showing location in the prospectus of the information
called for by the items enumerated in Part A and B of Form N-4.
Negative answers omitted from prospectus are so indicated.
PART A PART B
<C> <C> <C> <C>
Section Section in Statement of
Item No. in Prospectus Item No. Additional Information
1 Cover page 15 Cover page
2 Key terms 16 Table of contents
3(a) Expense Summary 17(a) NA
(b) The Flexible Portfolio Annuity in brief (b) NA
(c) About IDS Life of New York*
4(a) NA
(b) Performance information 18(a) NA
(c) NA (b) NA
(c) Independent auditors
5(a) Cover page; About IDS Life of New York (d) NA
(b) The variable account (e) NA
(c) The funds (f) Principal underwriter
(d) Cover page; The funds
(e) Voting rights 19(a) Distribution of the contracts*; About
(f) NA IDS Life of New York*
(g) NA (b) Charges*
6(a) Charges 20(a) Principal underwriter
(b) Charges (b) Principal underwriter
(c) Charges (c) NA
(d) Distribution of the contracts (d) NA
(e) The funds
(f) NA 21(a) Performance information
(b) Performance information
7(a) Buying your annuity; Benefits in case of
death; The annuity payout period 22 Calculating annuity payouts
(b) The variable account; Making the most of
your annuity, Transferring money between 23(a) NA
charge accounts (b) NA
(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) Buying your annuity; Valuing your
investment
(d) NA
11(a) Surrendering your contract
(b) TSA - Special surrender provisions
(c) Surrendering your contract
(d) Buying your annuity
(e) The Flexible Portfolio Annuity in brief
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the Statement of
Additional Information
*Designates section in the prospectus, which is hereby incorporated by reference in this statement of Additional Information.
/TABLE
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IDS Life of New York Flexible Portfolio Annuity
Prospectus
_____, 1996
The Flexible Portfolio Annuity is an individual deferred
fixed/variable annuity contract offered by IDS Life Insurance
Company of New York (IDS Life of New York), a subsidiary of IDS
Life Insurance Company (IDS Life), a subsidiary of American Express
Financial Corporation. Purchase payments may be allocated among
different accounts, providing variable and/or fixed returns and
payouts. The annuity is available for qualified and nonqualified
retirement plans.
IDS Life of New York Flexible Portfolio Annuity Account
Sold by: IDS Life Insurance Company of New York, 20 Madison Ave.
Extension, Albany, NY 12203, Telephone: 518-869-8613.
THIS PROSPECTUS CONTAINS THE INFORMATION ABOUT THE VARIABLE ACCOUNT
THAT YOU SHOULD KNOW BEFORE INVESTING. Refer to "The variable
account" in this prospectus.
THE PROSPECTUS IS ACCOMPANIED OR PRECEDED BY THE FOLLOWING
PROSPECTUSES: THE RETIREMENT ANNUITY MUTUAL FUNDS PROSPECTUS
(DESCRIBING IDS LIFE AGGRESSIVE GROWTH FUND, IDS LIFE INTERNATIONAL
EQUITY FUND, IDS LIFE CAPITAL RESOURCE FUND, IDS LIFE MANAGED FUND,
IDS LIFE SPECIAL INCOME FUND, IDS LIFE MONEYSHARE FUND, IDS LIFE
GROWTH DIMENSIONS FUND, IDS LIFE GLOBAL YIELD FUND AND IDS LIFE
INCOME ADVANTAGE FUND); AIM VARIABLE INSURANCE FUNDS, INC.
PROSPECTUS (DESCRIBING AIM V.I. GROWTH AND INCOME FUND); PUTNAM
CAPITAL MANAGER TRUST (DESCRIBING PCM NEW OPPORTUNITIES FUND); TCI
PORTFOLIOS, INC., (DESCRIBING TCI VALUE); TEMPLETON VARIABLE
PRODUCTS SERIES FUND (DESCRIBING TEMPLETON DEVELOPING MARKETS FUND)
AND WARBURG PINCUS TRUST (DESCRIBING WARBURG PINCUS TRUST/SMALL
COMPANY GROWTH PORTFOLIO). PLEASE KEEP THESE PROSPECTUSES FOR
FUTURE REFERENCE.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS LIFE OF NEW YORK IS NOT A FINANCIAL INSTITUTION, AND THE
SECURITIES IT OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENTS IN THIS ANNUITY
INVOLVE INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
A Statement of Additional Information (SAI) dated _____, 1996
(incorporated by reference into this prospectus) has been filed
with the Securities and Exchange Commission (SEC), and is available
without charge by contacting IDS Life of New York at the telephone
number above or by completing and sending the order form on the
last page of this prospectus. The table of contents of the SAI is
on the last page of this prospectus.
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Table of contents
Key terms.......................................................
The Flexible Portfolio Annuity in brief.........................
Expense summary.................................................
Financial statements............................................
Performance information.........................................
The variable account............................................
The funds.......................................................
IDS Life Aggressive Growth Fund............................
IDS Life International Equity Fund.........................
IDS Life Capital Resource Fund.............................
IDS Life Managed Fund......................................
IDS Life Special Income Fund...............................
IDS Life Moneyshare Fund...................................
IDS Life Growth Dimensions Fund............................
IDS Life Global Yield Fund.................................
IDS Life Income Advantage Fund.............................
AIM V.I. Growth and Income Fund............................
PCM New Opportunities Fund.................................
TCI Value..................................................
Templeton Developing Markets Fund..........................
Warburg Pincus Trust/Small Company Growth Portfolio........
The fixed account...............................................
Buying your annuity.............................................
The retirement date........................................
Beneficiary................................................
How to make purchase payments..............................
Charges.........................................................
Contract administrative charge.............................
Mortality and expense risk fee.............................
Surrender charge...........................................
Waiver of surrender charges................................
Valuing your investment.........................................
Number of units............................................
Accumulation unit value....................................
Net investment factor......................................
Factors that affect variable subaccount
accumulation units.........................................
Making the most of your annuity.................................
Automated dollar-cost averaging............................
Transferring money between subaccounts.....................
Transfer policies..........................................
How to request a transfer or a surrender...................
Surrendering your contract......................................
Surrender policies.........................................
Receiving payment when you request a surrender.............
TSA-special surrender provisions................................
Changing ownership..............................................
Benefits in case of death.......................................
The annuity payout period.......................................
Annuity payout plans.......................................
Death after annuity payouts begin..........................
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Taxes...........................................................
Voting rights...................................................
Substitution of investments.....................................
Distribution of the contracts...................................
About IDS Life of New York......................................
Regular and special reports.....................................
Services..................................................
Table of contents of the Statement of
Additional Information...................................
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Key terms
These terms can help you understand details about your annuity.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn, and that can be tailored to meet the specific needs of
the individual during retirement.
Accumulation unit - A measure of the value of each variable
subaccount before annuity payouts begin.
Annuitant - The person on whose life or life expectancy the annuity
payouts are based.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount may be paid on a variable or fixed basis or a combination of
both.
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 surrender 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 IDS Life of New York.
IDS Life of New York - In this prospectus, "we," "us," "our" and
"IDS Life of New York" refer to IDS Life Insurance Company of New
York.
Mutual funds (funds) - Mutual funds or portfolios, each with a
different investment objective. (See "The funds.") You may
allocate your purchase payments into variable subaccounts investing
in shares of any or all of these funds.
Owner (you, your) - The person who controls the annuity (decides on
investment allocations, transfers, payout options, etc.). Usually,
but not always, the owner is also the annuitant. The owner is
responsible for taxes, regardless of whether he or she receives the
annuity's benefits.<PAGE>
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Purchase payments - Payments made to IDS Life of New York for an
annuity.
Qualified annuity - An annuity purchased for a retirement plan
that is subject to applicable federal law and any rules of the plan
itself. These plans include:
o Individual Retirement Annuities (IRAs)
o Simplified Employee Pension Plans (SEPs)
o Section 401(k) plans
o Custodial and trusteed pension and profit-sharing plans
o Tax-Sheltered Annuities (TSAs)
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.
Surrender charge - A deferred sales charge that may be applied if
you surrender your annuity before the retirement date.
Surrender value - The amount you are entitled to receive if you
surrender your annuity. It is the contract value minus any
applicable surrender charge and contract administrative charge.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable subaccount is
calculated at the close of business on each valuation date.
Variable account - An account consisting of separate subaccounts to
which you may allocate purchase payments; each invests in shares of
one mutual fund. (See "The variable account.") The value of your
investment in each variable subaccount changes with the performance
of the particular fund.
The Flexible Portfolio Annuity in brief
Purpose: The Flexible Portfolio Annuity is designed to allow you
to build up funds for retirement. You do this by making one or more
investments (purchase payments) that may earn returns that increase
the value of the annuity. Beginning at a specified future date
(the 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 financial
advisor or our Albany office within 10 days after it is delivered
to you and receive a full refund of the contract value. No charges
will be deducted.
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Accounts: You may allocate your purchase payments among any or all
of:
o variable subaccounts, each of which invests in a mutual fund
with a particular investment objective. The value of each
variable subaccount varies with the performance of the
particular fund. We cannot guarantee that the value at the
retirement date will equal or exceed the total of purchase
payments allocated to the variable subaccounts. (p.)
o one fixed account, which earns interest at rates that are
adjusted periodically by IDS Life of New York. (p.)
Buying your annuity: Your financial advisor will help you complete
and submit an application. Applications are subject to acceptance
at our Albany office. You may buy a nonqualified annuity or a
qualified annuity including an IRA. Payment may be made either in
a lump sum or installments:
o Minimum initial purchase payment - $2,000 ($1,000 for qualified
annuities) unless you pay in installments by means of a bank
authorization or under a group billing arrangement such as a
payroll deduction.
o Minimum additional purchase payment - $50.
o Minimum installment payment - $50 monthly; $23.08 biweekly
(scheduled payment plan billing).
o Maximum first-year payment(s) - $50,000 to $1,000,000 depending
on your age.
o Maximum payment for each subsequent year - $50,000 to $100,000
depending upon your age. (p.)
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.)
Surrenders: You may surrender all or part of your contract value at
any time before the retirement date. You also may establish
automated partial surrenders. Surrenders may be subject to charges
and tax penalties 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.)
Benefits in case of death: If you or the annuitant dies before
annuity payouts begin, we will pay the beneficiary an amount at
least equal to the contract value. (p.)
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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 the 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. During the annuity
payout period, you cannot be invested in more than five variable
subaccounts at any one time unless we agree otherwise. (p.)
Taxes: Generally, your annuity grows tax-deferred until you
surrender it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will still be taxed on the income if
you are the owner. (p.)
Charges: Your Flexible Portfolio Annuity is subject to a $30
annual contract administrative charge, a 1.25% mortality and
expense risk charge and a surrender charge.
Expense summary
The purpose of this summary is to help you understand the various
costs and expenses associated with your annuity.
You pay no sales charge when you purchase the annuity. All costs
that you bear directly or indirectly for the variable subaccounts
and underlying mutual funds are shown below. Some expenses may
vary as explained under "Contract charges."
Direct charges. These are deducted directly from the contract
value. They include:
Surrender charge: You may pay surrender charges on any surrender
within the first eight contract years. The surrender charge starts
at 7% of any purchase payments surrendered during the first three
contract years, then declines by 1% per year from 6% in the fourth
year to 2% in the eighth year. No charge applies after 8 contract
years. Contract earnings may be surrendered without charge at any
time.
Annual contract administrative charge: $30, waived when contract
value, or total purchase payments (less any payments surrendered)
equals or exceeds $25,000 on your contract anniversary.
Indirect charges. The variable account pays these expenses out of
its assets. They are reflected in the variable subaccount's daily
accumulation unit value and are not charged directly to your
account. They include:
Mortality and expense risk fee: 1.25% per year, deducted from the
variable account as a percentage of the average daily net assets of
the underlying fund.
Operating expenses of underlying mutual funds: management fees and
other expenses deducted as a percentage of average net assets as
follows: *<PAGE>
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<TABLE><CAPTION>
IDS Life IDS Life
Aggres- Inter- IDS Life IDS Life IDS Life IDS Life IDS Life AIM V.I. PCM New
sive national Capital IDS Life Special IDS Life Growth Global Income Growth and Oppor- TCI
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage Income*** tunities Value
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Management
fees
Other
expenses
Total
Warburg Pincus
Templeton Trust/Small
Developing Company
Markets Growth Portfolio
Management
fees
Other
expenses
Total
IDS Life IDS Life
Aggres- Inter- IDS Life IDS Life IDS Life IDS Life IDS Life AIM V.I. PCM New
sive national Capital IDS Life Special IDS Life Growth Global Income Growth and Oppor- TCI
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage Income tunities Value
Example:* You would pay the following expenses on a $1,000 investment, assuming 5% annual
return and surrender at the end of each time period:
1 year
3 years
5 years
10 years
Warburg Pincus
Templeton Trust/Small
Developing Company
Markets Growth Portfolio
1 year
3 years
5 years
10 years
You would pay the following expenses on the same investment assuming no surrender or the
selection of an annuity payout plan at the end of each time period:
IDS Life IDS Life
Aggres- Inter- IDS Life IDS Life IDS Life IDS Life IDS Life AIM V.I. PCM New
sive national Capital IDS Life Special IDS Life Growth Global Income Growth and Oppor- TCI
Growth Equity Resource Managed Income Moneyshare Dimensions Yield Advantage Income tunities Value
1 year
3 years
5 years
10 years
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Warburg Pincus
Templeton Trust/Small
Developing Company
Markets Growth Portfolio
1 year
3 years
5 years
10 years
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $30 annual contract administrative charge is
approximated as a .___% charge based on the expected average
contract size. IDS Life of New York has entered into certain
arrangements under which it is compensated for the administrative
services it provides to the funds.
Financial statements
[ To be filed by Amendment ]
Performance information
Performance information for the variable subaccounts may appear
from time to time in advertisements or sales literature. In all
cases, such information reflects the performance of a hypothetical
investment in a particular account during a particular time period.
Calculations are performed as follows:
Simple yield - Account GM (investing in Moneyshare Fund): 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 - Account GM (investing in Moneyshare Fund):
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 accounts 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.
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PAGE 12
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 account
if it is less than 10 years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, mortality and expense risk fee and surrender charge,
assuming a surrender at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
surrender charge deduction (assuming no surrender).
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 and surrender
charge, assuming a surrender at the end of the illustrated period.
Optional total return quotations may be made that do not reflect a
surrender charge deduction (assuming no surrender). Aggregate
total return may be shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the subaccount invests, and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all charges attributable to the annuity,
which has the effect of decreasing advertised performance,
subaccount performance should not be compared to that of mutual
funds that sell their shares directly to the public. (See the SAI
for a further description of methods used to determine yield and
total return for the subaccounts.)
If you would like additional information about actual performance,
contact your financial advisor.
The variable account
Purchase payments can be allocated to any or all of the subaccounts
of the variable account that invest in shares of the following
funds:
Subaccount
IDS Life Aggressive Growth Fund GA
IDS Life International Equity Fund GI
IDS Life Capital Resource Fund GC
IDS Life Managed Fund GD
IDS Life Special Income Fund GS
IDS Life Moneyshare Fund GM
IDS Life Growth Dimensions Fund GG
IDS Life Global Yield Fund GY
IDS Life Income Advantage Fund GV
AIM V.I. Growth and Income Fund GW
PCM New Opportunities Fund GN
TCI Value GP
Templeton Developing Markets Fund GK
Warburg Pincus Trust/Small Company Growth Portfolio GT<PAGE>
PAGE 13
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 account or of our general business. All
obligations arising under the contracts are general obligations of
IDS Life of New York.
The variable account was established under New York law on April
17, 1996 and is registered as a unit investment trust under the
Investment Company Act of 1940 (the 1940 Act). This registration
does not involve any supervision of our management or investment
practices and policies by the SEC.
The funds
IDS Life Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small-and medium-size companies. The fund also may invest in
warrants or debt securities or in large, well-established companies
when the portfolio manager believes such investments offer the best
opportunity for capital appreciation.
IDS Life International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock. The fund also may invest in certain international bonds if
the portfolio manager believes they have a greater potential for
capital appreciation than equities.
IDS Life Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks and other securities convertible into common stock,
diversified over many different companies in a variety of
industries.
IDS Life Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks, securities convertible into common stock,
warrants, fixed income securities (primarily high-quality corporate
bonds) and money-market instruments. The fund invests in many
different companies in a variety of industries.
IDS Life Special Income Fund
Objective: to provide a high level of current income while
conserving the value of the investment for the longest time period.
Invests primarily in high-quality, lower-risk corporate bonds
issued by many different companies in a variety of industries, and
in government bonds.
IDS Life Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
<PAGE>
PAGE 14
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 Global Yield Fund
Objective: high total return through income and growth of capital.
Invests primarily in a non-diversified portfolio of debt securities
of U.S. and foreign issuers.
IDS Life Income Advantage Fund
Objective: high current income, with capital growth as a secondary
objective. Invests primarily in long-term, high-yielding, high-
risk debt securities below investment grade issued by U.S. and
foreign corporations.
AIM V.I. Growth and Income Fund
Objective: to seek growth of capital, with current income as a
secondary objective. The fund seeks to achieve its objective by
investing primarily in dividend-paying common stocks which have
prospects for both growth of capital and dividend income.
PCM New Opportunities Fund
Objective: long-term capital appreciation. Invests principally in
common stocks of companies in sectors of the economy that
management believes possess above-average, long-term growth
potential.
TCI 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.
Templeton Developing Markets Fund
Objective: long-term capital appreciation. Invests primarily in
equity securities of issuers in countries having developing
markets.
Warburg Pincus Trust/Small Company Growth Portfolio
Objective: capital growth. Invests primarily in equity securities
of small-sized domestic companies.
All funds are available to serve as the underlying investment for
variable annuities, and some funds are available to serve as the
underlying investment for variable annuities, variable life
insurance contracts and qualified plans. It is conceivable that in
the future it may be disadvantageous for variable annuity separate
accounts, variable life insurance separate accounts and/or
qualified plans to invest in the available funds simultaneously.
Although IDS Life of New York 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 to determine what action, if any, should be
taken in response to a conflict. If a board were to conclude that
separate funds should be established for variable annuity, variable
life insurance and qualified plan separate accounts, the variable
annuity contract holders would not bear any expenses associated
with establishing separate funds.
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PAGE 15
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under Section 817(h)
of the Code. Each mutual fund intends to comply with these
requirements.
The U.S. Treasury and the IRS have indicated they may provide
additional guidance concerning how many variable subaccounts may be
offered and how many exchanges among variable subaccounts may be
allowed before the owner is considered to have investment control
and thus is currently taxed on income earned within variable
subaccount assets. We do not know at this time what the additional
guidance will be or when action will be taken. We reserve the
right to modify the contract, as necessary, to ensure that the
owner will not be subject to current taxation as the owner of the
variable subaccount assets.
We intend to comply with all federal tax laws to ensure that the
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
The investment managers for the funds are as follows:
o IDS Life Funds - IDS Life, IDS Tower 10, Minneapolis, MN 55440;
o AIM V.I. Growth and Income Fund - A I M Advisors, Inc., 11
Greenway Plaza, Suite 1919, Houston, TX 77046-1173;
o PCM New Opportunities Fund - Putnam Investment Management, Inc.,
One Post Office Square, Boston, MA 02109;
o TCI Value - Investors Research Corporation, Twentieth Century
Tower, 4500 Main Street, Kansas City, MO 64111;
o Templeton Developing Markets Fund - Templeton Asset Management
Ltd., Hong Kong Branch, Two Exchange Square, Hong Kong;
o Warburg Pincus Trust/Small Company Growth Portfolio - Warburg,
Pincus Counsellors, Inc., 466 Lexington Avenue, New York, NY
10017-3147.
The investment managers cannot guarantee that the funds will meet
their investment objectives. Please read the prospectuses for the
funds for complete information on investment risks, deductions,
expenses and other facts you should know before investing. These
prospectuses are available by contacting IDS Life of New York at
the address or telephone number on the front of this prospectus, or
from your financial advisor.
The fixed account
Purchase payments can also be allocated to the fixed account. The
cash value of the fixed account increases as interest is credited
to the account. Purchase payments and transfers to the fixed
account become part of the general account of IDS Life of New York,
the company's main portfolio of investments. Interest is credited
daily and compounded annually. We may change the interest rates
from time to time.
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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 financial advisor will help you prepare and submit your
application, and send it along with your initial purchase payment
to our Albany office. As the owner, you have all rights and
may receive all benefits under the contract. The annuity cannot be
owned in joint tenancy, except in spousal situations. You cannot
buy an annuity or be an annuitant if you are 91 or older.
When you apply, you can select:
o the account(s) in which you want to invest;
o how you want to make purchase payments; and
o a beneficiary.
The contract provides for allocation of purchase payments to the
subaccounts of the variable account and/or to the fixed account in
even 1% increments.
If your application is complete, we will process it and apply your
purchase payment to your account(s) within two days after we
receive it. If your application is accepted, we will send you a
contract. If we cannot accept your application within five days,
we will decline it and return your payment. We will credit
additional purchase payments to your account(s) at the next close
of business.
The retirement date
Upon processing your application we will establish the retirement
date to the maximum age or date as specified below. You can also
select a date within the maximum limits. This date can be aligned
with your actual retirement from a job, or it can be a different
future date, depending on your needs and goals and on certain
restrictions. You can also change the date, provided you send us
written instructions at least 30 days before annuity payouts begin.
For nonqualified annuities, the retirement date must be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 85th birthday or before the 10th
contract anniversary, if purchased after age 75.
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For qualified annuities, to avoid IRS penalty taxes, the retirement
date generally must be:
o on or after the annuitant reaches age 59 1/2; and
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
If you are taking the minimum IRA or TSA distributions as required
by the Code from another tax-qualified investment, or in the form
of partial surrenders from this annuity, annuity payouts can start
as late as the annuitant's 85th birthday or the 10th contract
anniversary.
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 "Benefits in case of death" for more about
beneficiaries.)
Minimum purchase payment
If single payment:
Nonqualified: $2,000
Qualified: $1,000
o Minimum additional purchase payment: $50
If installment payments:
o Minimum installment payment(s): $50 monthly; $23.08 biweekly
(scheduled payment plan billing)
Installments must total at least $600 in the first year.*
*If you make no purchase payments for 36 months, and your previous
payments total $600 or less, we have the right to give you 30 days'
written notice and pay you the total value of your contract in a
lump sum.
Maximum first-year payment(s):
This maximum is based on your age or age of the annuitant (whomever
is older) on the effective date of the contract.
Up to age 75 $1 million
76 to 85 $500,000
86 to 90 $50,000
o Maximum payment for each subsequent year**: $100,000 Up to age 85
$ 50,000 Ages 86-90
**These limits apply in total to all IDS Life of New York annuities
you own. We reserve the right to increase maximum limits. For
qualified annuities the qualified plan's limits on annual
contributions also apply.
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How to make purchase payments
1 By letter
Send your check along with your name and account number to:
Regular mail:
IDS Life Insurance Company of New York
Box 5144
Albany, NY 12205
Express mail:
IDS Life Insurance Company of New York
20 Madison Ave. Extension
Albany, NY 12203
2 By scheduled payment plan
Your financial advisor can help you set up:
o an automatic payroll deduction, salary reduction or other group
billing arrangement; or
o a bank authorization.
Charges
Contract administrative charge
This fee is for establishing and maintaining your records. We
deduct $30 from the contract value on your contract anniversary.
This $30 charge is waived if your contract value, or total purchase
payments less any payments surrendered, equals or exceeds $25,000
on your contract anniversary.
If you surrender your contract, the charge will be deducted at the
time of surrender regardless of the contract value or purchase
payments made. The charge cannot be increased and does not apply
after annuity payouts begin.
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 that 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.
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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 IDS Life of New
York annuitants live. If, as a group, IDS Life of New York
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, IDS Life of New York
annuitants do not live as long as expected, we could profit from
the mortality risk fee. Expense risk arises because the contract
administrative charge cannot be increased and may not cover our
expenses. Any deficit would have to be made up from our general
assets.
We do not plan to profit from the contract administrative charge.
However, we do hope to profit from the mortality and expense risk
fee. We may use any profits realized from this fee for any proper
corporate purpose, including, among others, payment of distribution
(selling) expenses. We do not expect that the surrender charge,
discussed in the following paragraphs, will cover sales and
distribution expenses.
Surrender charge
A surrender charge applies to all purchase payments surrendered in
the first eight contract years. The surrender amount you request
is determined by drawing from your total contract value in the
following order:
o First we surrender any contract earnings (contract value minus
all purchase payments received and not previously surrendered).
There is no surrender charge on contract earnings. Note:
Contract earnings are determined by looking at the entire
contract value, not the earnings of any particular variable
subaccount or the fixed account.
o If necessary, we surrender amounts representing purchase
payments not previously surrendered. The surrender charge rate
on these purchase payments is as follows:
Surrender charge as
percent of purchase
payments surrendered Contract year
7 1-3
6 4
5 5
4 6
3 7
2 8
0 After 8 years
The surrender charge is calculated so that the total amount
surrendered, minus any surrender charge, equals the amount you
request.
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Waiver of surrender charges
There are no surrender charges for:
o contract earnings;
o minimum required distributions after you reach age 70 1/2; (for
qualified plans)
o contracts settled using an annuity payout plan; and
o death benefits.
Other information on charges: American Express Financial
Corporation makes certain custodial services available to some
custodial and trusteed pension and profit sharing plans and 401(k)
plans funded by IDS Life of New York annuities. Fees for these
services start at $30 per calendar year per participant. A
termination fee for owners under age 59 1/2 will be charged (fee
waived in case of death or disability).
Possible group reductions: In some cases (for example, an employer
making the annuity available to employees), 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 surrender charges. However, we
expect this to occur infrequently.
Valuing your investment
Here is how your accounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments, plus interest earned, less any amounts surrendered or
transferred and any contract administrative charge assessed.
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 surrender, transfer amounts out of a
variable subaccount, or are assessed a contract administrative
charge, a certain number of accumulation units are subtracted from
your contract.
The accumulation units are the true measure of investment value in
each subaccount during the accumulation period. They are related
to, but not the same as, the net asset value of the underlying
fund. The dollar value of each accumulation unit can rise or fall
daily depending on the performance of the underlying mutual fund
and on certain fund expenses. Here is how unit values are
calculated:
Number of units
To calculate the number of accumulation units for a particular
subaccount, we divide your investment, by the current accumulation
unit value.
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Accumulation unit value
The current accumulation unit value for each variable subaccount
equals the last value times the subaccount's current net investment
factor.
Net investment factor
o Determined each business day by adding the underlying mutual
fund's current net asset value per share, plus per share amount
of any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the accumulation unit value may increase or decrease.
You bear this investment risk in a variable subaccount.
Factors that affect variable subaccount accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable
subaccount(s);
o transfers into or out of the variable subaccount(s);
o partial surrenders;
o surrender charges; and/or
o contract administrative charges.
Accumulation unit values may fluctuate due to:
o changes in underlying mutual fund(s) net asset value;
o dividends distributed to the variable subaccount(s);
o capital gains or losses of underlying mutual funds;
o mutual fund operating expenses; and/or
o mortality and expense risk fees.
Making the most of your annuity
Automated dollar-cost averaging
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable subaccount to a more aggressive
one, or to several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying mutual fund(s). Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower the average cost per unit. For specific
features contact your financial advisor.
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How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 18 5.56
March 100 17 5.88
April 100 15 6.67
May 100 16 6.25
June 100 18 5.56
July 100 17 5.88
Aug 100 19 5.26
Sept 100 21 4.76
Oct 100 20 5.00
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low...
(arrow in table pointing to September) and fewer units when the per
unit market price is high.
You have paid an average price of only $17.91 per unit over the 10
months, while the average market price actually was $18.10.
Dollar-cost averaging does not guarantee that any variable
subaccount will gain in value, nor will it protect against a
decline in value if market prices fall. However, if you can
continue to invest regularly throughout changing market conditions,
it can be an effective strategy to help meet your long-term goals.
Transferring money between subaccounts
You may transfer money from any one subaccount, or the fixed
account, to another subaccount before the annuity payouts begin. If
we receive your request before the close of business, we will
process it that day. Requests received after the close of business
will be processed the next business day. There is no charge for
transfers. Before making a transfer, you should consider the risks
involved in switching investments.
Certain restrictions apply to transfers involving the fixed
account. We may suspend or modify transfer privileges at any time.
Excessive trading activity can disrupt mutual fund management
strategy and increase expenses, which are borne by all contract
owners participating in the fund regardless of their transfer
activity. We may apply modifications or restrictions in any manner
reasonably designed to prevent any use of the transfer right we
consider to be to the disadvantage of other contract owners.
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Transfer policies
o Before annuity payouts begin, you may transfer contract values
between the variable subaccounts, or from the variable
subaccount(s) to the fixed account at any time. However, if you
have made a transfer from the fixed account to the variable
subaccount(s), you may not make a transfer (including automated
transfers) from any variable subaccount back to the fixed
account until the next contract anniversary.
o You may transfer contract values from the fixed account to the
variable subaccount(s) once a year during a 31-day transfer
period starting on each contract anniversary (except for
automated transfers, which can be set up at any time for
transfer periods of your choosing subject to certain minimums).
o If we receive your transfer request within 30 days before the
contract anniversary date, the transfer from the fixed account
to the variable subaccount(s) will be effective on the
anniversary.
o If we receive your request on or within 30 days 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. During the annuity payout
period, you cannot be invested in more than five variable
subaccounts at any one time unless we agree otherwise.
How to request a transfer or a surrender
1 By letter
Send your name, account number, Social Security Number or Taxpayer
Identification Number and signed request for a transfer or
surrender to:
Regular mail:
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, NY 12205
Express mail:
IDS Life Insurance Company of New York
20 Madison Avenue Ext.
Albany, NY 12203
Minimum amount
Mail transfers: $250 or entire account balance
Mail surrenders: $250 or entire account balance
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PAGE 24
Maximum amount
Mail transfers: None (up to contract value)
Mail surrenders: None (up to contract value)
2 By automated transfers and automated partial surrenders
Your financial advisor can help you set up automated transfers
among your accounts or partial surrenders from the accounts. You
can start or stop this service by written request or other method
acceptable to IDS Life of New York. You must allow 30 days for IDS
Life of New York to change any instructions that are currently in
place.
o Automated transfers from the fixed account to any one of the
variable subaccount(s) may not exceed an amount that, if
continued, would deplete the fixed account within 12 months.
o Automated surrenders may be restricted by applicable law under
some contracts.
o You may not make additional purchase payments if automated
partial surrenders are in effect.
o Automated partial surrenders may result in IRS taxes and
penalties on all or part of the amount surrendered.
Minimum amount
Automated transfers or surrenders: $50
Maximum amount
Automated transfers or surrenders: None (except for automated
transfers from the fixed
account)
Surrendering your contract
As owner, you may surrender all or part of your contract at any
time before annuity payouts begin by sending a written request or
calling IDS Life of New York. For total surrenders we will compute
the value of your contract at the close of business after we
receive your request. We may ask you to return the contract. You
may have to pay surrender charges (see "Surrender charge") and IRS
taxes and penalties (see "Taxes"). No surrenders may be made after
annuity payouts begin.
Surrender policies
If you have a balance in more than one account and request a
partial surrender, we will withdraw money from all your accounts in
the same proportion as your value in each account correlates to
your total contract value, unless you request otherwise. The
minimum contract value after partial surrender is $600.
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PAGE 25
Receiving payment when you request a surrender
By regular or express mail:
o Payable to owner;
o Mailed to address of record;
o Special payee and/or addressee.
By wire:
o Request that payment be wired to your bank;
o Bank account must be in the same ownership as your contract;
o Pre-authorization required. For instructions, contact your
financial advisor.
Payment normally will be sent within seven days after receiving
your request. However, we may postpone the payment if:
-the surrender amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts;
or
-the SEC permits us to delay payment for the protection of
security holders.
TSA-special surrender provisions
Participants in Tax-Sheltered Annuities: The Code imposes certain
restrictions on your right as owner to receive early distributions
from a TSA:
o Distributions attributable to salary reduction contributions
made after Dec. 31, 1988, plus the earnings on them, or to
transfers or rollovers of such amounts from other contracts, may
be made from the TSA only if:
-you have attained age 59 1/2;
-you have become disabled as defined in the Code;
-you have separated from the service of the employer who
purchased the annuity; or
-the distribution is made to your beneficiary because of your
death.
o If you encounter a financial hardship (within the meaning of the
Code), you may receive a distribution of all contract values
attributable to salary reduction contributions made after Dec.
31, 1988, but not the earnings on them.
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PAGE 26
o Even though a distribution may be permitted under the above
rules, it still may be subject to IRS taxes and penalties. (See
"Taxes.")
o The above restrictions on the right to receive a distribution do
not affect the availability of the amount credited to the
contract as of Dec. 31, 1988. The restrictions do not apply to
transfers or exchanges of contract value within the annuity, or
to another registered variable annuity contract or investment
vehicle available through the employer.
o If the contract has a loan provision, the right to receive a
loan from your fixed account is described in detail in your
contract. You may borrow from the contract value allocated to
the fixed account.
o For certain types of contributions under a TSA contract to be
excluded from taxable income, the employer must comply with
certain nondiscrimination requirements. You should consult your
employer to determine whether the nondiscrimination rules apply
to you.
Changing ownership
You may change ownership of your nonqualified annuity at any time
by filing a change of ownership with us at our Albany office. The
change will become binding upon us when we receive and record it.
We will honor any change of ownership request believed to be
authentic and will use reasonable procedures to confirm that it is.
If these procedures are followed, we take no responsibility for the
validity of the change.
If you have a nonqualified annuity, you may lose your tax
advantages by transferring, assigning or pledging any part of it.
(See "Taxes.")
If you have a qualified annuity, you may not sell, assign,
transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for
any other purpose to any person except IDS Life of New York.
However, if the owner is a trust or custodian, or an employer
acting in a similar capacity, ownership of a contract may be
transferred to the annuitant.
Benefits in case of death
If you or the annuitant dies (or, for qualified annuities, if the
annuitant dies) before annuity payouts begin, we will pay the
beneficiary as follows:
If death occurs before the annuitant's 75th birthday, the
beneficiary receives the greatest of:
o the contract value;
o the contract value as of the most recent sixth contract
anniversary, minus any surrenders since that anniversary; or
o purchase payments, minus any surrenders.
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PAGE 27
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives the greater of:
o the contract value; or
o the contract value as of the most recent sixth contract
anniversary, minus any surrenders since that anniversary.
If death occurs on or after the annuitant's 75th birthday, the
beneficiary receives the contract value.
If your spouse is sole beneficiary under a nonqualified annuity and
you die before the retirement date, your spouse may keep the
annuity as owner. To do this your spouse must, within 60 days
after we receive proof of death, give us written instructions to
keep the contract in force.
Under a qualified annuity, if the annuitant dies before reaching
age 70 1/2 and before the retirement date, and the spouse is the
only beneficiary, the spouse may keep the annuity in force until
the date on which the annuitant would have reached 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;
o payouts begin no later than one year after death; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the contract's value
at the next close of business after our death claim requirements
are fulfilled. Interest, if any, will be paid from the date of
death at a rate no less than required by law. We will mail payment
to the beneficiary within seven days after our death claim
requirements are fulfilled. (See "Taxes.")
The annuity payout period
As owner of the contract, you have the right to decide how and to
whom annuity payouts will be made starting at the retirement date.
You may select one of the annuity payout plans outlined below, or
we will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the contract
value on your retirement date. No surrender charges are deducted
under the payout plans listed below.
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PAGE 28
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;
o the amounts you allocated to the account(s) at settlement.
In addition, for variable payouts only, amounts depend on the
investment performance of the subaccount(s) you select. These
payouts will vary from month to month because the performance of
the underlying mutual funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)
For information with respect to transfers between accounts after
annuity payouts begin, see "Transfer policies."
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before contract values are to
be used to purchase the payout plan.
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that the annuitant elects. This election will determine the
length of the payout period to the beneficiary if the annuitant
should die before the elected period has expired. The guaranteed
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 to the annuitant and a joint annuitant
while both are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period: Monthly payouts are
made for a specific payout period of 10 to 30 years chosen by the
annuitant. Payouts will be made only for the number of years
specified whether the annuitant is living or not. Depending on the
time period selected, it is foreseeable that an annuitant can
outlive the payout period selected. In addition, a 10% IRS penalty
tax could apply under this payout plan. (See "Taxes.")<PAGE>
PAGE 29
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.
Death after annuity payouts begin
If you or the annuitant dies after annuity payouts begin, any
amount payable to the beneficiary will be provided in the annuity
payout plan in effect.
Taxes
Generally, under current law, any increase in your contract value
is taxable to you only when you receive a payout or surrender.
(See detailed discussion below.) Any portion of the annuity
payouts and any surrenders you request that represent ordinary
income are normally taxable. You will receive a 1099 tax
information form for any year in which a taxable distribution was
made.
Annuity payouts under nonqualified annuities: A portion of each
payout will be ordinary income and subject to tax, and a portion of
each payout will be considered a return of part of your investment
and will not be taxed. All amounts received after your investment
in the annuity is fully recovered will be subject to tax.
Tax law requires that all nonqualified deferred annuity contracts
issued by the same company to the same owner during a calendar year
are to be taxed as a single, unified contract when distributions
are taken from any one of such contracts.
Annuity payouts under qualified annuities: Under a qualified
annuity, the entire payout generally will be includable as ordinary
income and subject to tax except to the extent that contributions
were made with after-tax dollars. If you or your employer invested
in your contract with pre-tax dollars as part of a qualified
retirement plan, such amounts are not considered to be part of your
investment in the contract and will be taxed when paid to you.
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PAGE 30
Surrenders: If you surrender part or all of your contract before
your annuity payouts begin, your surrender payment will be taxed to
the extent that the value of your contract immediately before the
surrender exceeds your investment. You also may have to pay a 10%
IRS penalty for surrenders before reaching age 59 1/2. For
qualified annuities, other penalties may apply if you surrender
your annuity before your plan specifies that you can receive
payouts.
Death benefits to beneficiaries: The death benefit under an
annuity is not tax-exempt. Any amount received by the beneficiary
that represents previously deferred earnings within the contract,
is taxable as ordinary income to the beneficiary in the year(s) he
or she receives the payment(s).
Annuities owned by corporations, partnerships or trusts: Any
annual increase in the value of annuities held by such entities
generally will be treated as ordinary income received during that
year. This provision is effective for purchase payments made after
Feb. 28, 1986. However, if the trust was set up for the benefit of
a natural person only, the income will continue to be tax-deferred.
Penalties: If you receive amounts from your contract before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if
you surrender your annuity before your plan specifies that payouts
can be made.
Withholding, generally: If you receive all or part of the contract
value from an annuity, withholding may be imposed against the
taxable income portion of the payout. Any withholding that is done
represents a prepayment of your tax due for the year. You take
credit for such amounts on the annual tax return that you file.
If the payout is part of an annuity payout plan, the amount of
withholding generally is computed using payroll tables. You can
provide us with a statement of how many exemptions to use in
calculating the withholding. As long as you've provided us with a
valid Social Security Number or Taxpayer Identification Number, you
can elect not to have any withholding occur.
If the distribution is any other type of payment (such as a partial
or full surrender), withholding is computed using 10% of the
taxable portion. Similar to above, as long as you've provided us
with a valid Social Security Number or Taxpayer Identification
Number, you can elect not to have this withholding occur.
<PAGE>
PAGE 31
Some states also impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payment from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
Withholding from qualified annuities: If you receive directly all
or part of the contract value from a qualified annuity (except an
IRA), mandatory 20% income tax withholding generally will be
imposed at the time the payout is made. This mandatory withholding
is in place of the elective withholding discussed above. This
mandatory withholding will not be imposed if:
o instead of receiving the distribution check, you elect to have
the distribution rolled over directly to an IRA or another
eligible plan;
o the payout is one in a series of substantially equal periodic
payouts, made at least annually, over your life or life
expectancy (or the joint lives or life expectancies of you and
your designated beneficiary) or over a specified period of 10
years or more; or
o the payment is a minimum distribution required under the Code.
Payments made to a surviving spouse instead of being directly
rolled over to an IRA may also be subject to mandatory 20% income
tax withholding.
State withholding also may be imposed on taxable distributions.
Transfer of ownership of a nonqualified annuity: If you make such
a transfer without receiving adequate consideration, the transfer
is considered a gift, and also may be considered a surrender for
federal income tax purposes. If the gift is a currently taxable
event, the amount of deferred earnings at the time of the transfer
will be taxed to the original owner, who also may be subject to a
10% IRS penalty as discussed earlier. In this case, the new
owner's investment in the annuity will be the value of the annuity
at the time of the transfer.
Collateral assignment of a nonqualified annuity: If you
collaterally assign or pledge your contract, earnings on purchase
payments you made after Aug. 13, 1982 will be taxed to you like a
surrender.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax advisor if you have any questions about taxation of your
contract.
<PAGE>
PAGE 32
Tax qualification: The contract is intended to qualify as an
annuity for federal income tax purposes. To that end, the
provisions of the contract are to be interpreted to ensure or
maintain such tax qualification, notwithstanding any other
provisions of the contract. We reserve the right to amend the
contract to reflect any clarifications that may be needed or are
appropriate to maintain such qualification or to conform the
contract to any applicable changes in the tax qualification
requirements. We will send you a copy of any such amendments.
Voting rights
As 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 is determined by
applying the percentage interest in each variable subaccount to the
total number of votes allowed to the subaccount.
After annuity payouts begin, the number of votes is equal to:
o the reserve held in each subaccount for the contract,
divided by
o the net asset value of one share of the applicable underlying
mutual fund.
As we make annuity payouts, the reserve for the annuity decreases;
therefore, the number of votes also will decrease.
We calculate votes separately for each subaccount not more than 60
days before a shareholders' meeting. Notice of these meetings,
proxy materials and a statement of the number of votes to which the
voter is entitled, will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
Substitution of investments
If shares of any fund should not be available for purchase by the
appropriate variable subaccount or if, in the judgment of IDS Life
of New York's Management, further investment in such shares is no
longer appropriate in view of the purposes of the subaccount,
investment in the subaccount may be discontinued or another
registered open-end management investment company may be
substituted for fund shares held in the subaccounts if IDS Life of
New York believes it would be in the best interest of persons <PAGE>
PAGE 33
having voting rights under the contract. The variable account may
be operated as a management company under the 1940 Act or it may be
deregistered under this Act if the registration is no longer
required. In the event of any such substitution or change, IDS
Life of New York, without the consent or approval of the owners,
may amend the contract and take whatever action is necessary and
appropriate. However, no such substitution or change will be made
without the necessary approval of the SEC and state insurance
departments. IDS Life of New York will notify owners of any
substitution or change.
Distribution of the contracts
American Express Financial Advisors Inc., a registered
broker/dealer and an affiliate of IDS Life of New York, is the sole
distributor of the contract. IDS Life of New York pays total
commissions of up to 7.0% of the total purchase payments received
on the contracts. A portion of this total commission is paid to
district managers and field vice presidents of the selling
representative.
About IDS Life of New York
The Flexible Portfolio Annuity is issued by IDS Life of New York.
IDS Life is a wholly owned subsidiary of IDS Life, which is a
wholly owned subsidiary of American Express Financial Corporation.
American Express Financial Corporation is a wholly owned subsidiary
of the American Express Company, a financial services company
headquartered in New York City.
IDS Life of New York is a stock life insurance company organized in
1972 under the laws of the State of New York and located at 20
Madison Ave. Ext., Albany, NY. IDS Life of New York is licensed in
New York and North Dakota and conducts a conventional life
insurance business in the State of New York.
American Express Financial Advisors Inc. is the principal
underwriter for the Accounts. Its corporate office is IDS Tower
10, Minneapolis, MN 55440-0010. American Express Financial
Advisors Inc. is a wholly owned subsidiary of American Express
Financial Corporation.
American Express Financial Advisors Inc. offers mutual funds,
investment certificates and a broad range of financial management
services. IDS Life of New York offers insurance and annuities.
American Express Financial Advisors Inc. serves individuals and
businesses through its nationwide network of more than 175 offices
and more than 7,800 financial advisors.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
<PAGE>
PAGE 34
Regular and special reports
Services
To help you track and evaluate the performance of your annuity, we
provide:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
A personalized annuity progress report detailing the cumulative
return since the contract was purchased and the average annual rate
of return on your investments. This report, which is unique in the
industry, is available upon request from your financial advisor.
<PAGE>
PAGE 35
Table of contents of the Statement of Additional Information
IDS Life Preferred Retirement Account.........
Performance information.......................
Calculating annuity payouts...................
Rating agencies...............................
Principal underwriter.........................
Independent auditors..........................
Mortality and expense risk fee................
Prospectus....................................
Financial statements -
IDS Life Insurance Company of New York
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
_____ IDS Life of New York Flexible Portfolio Annuity
_____ IDS Life Retirement Annuity Mutual Funds
_____ AIM Variable Insurance Funds, Inc.
_____ Putnam Capital Manager Trust
_____ TCI Portfolios, Inc.
_____ Templeton Variable Products Series Fund
_____ Warburg Pincus Trust/Small Company Growth Portfolio
Please return this request to:
IDS Life of New York Annuity Service
IDS Life Insurance Company of New York
Box 5144
Albany, NY 12205
Your name _______________________________________________________
Address _________________________________________________________
City ______________________ State ______________ Zip ___________
<PAGE>
PAGE 36
STATEMENT OF ADDITIONAL INFORMATION
for
IDS LIFE OF NEW YORK FLEXIBLE PORTFOLIO ANNUITY
IDS Life of New York Flexible Portfolio Annuity Account
______ 1996
IDS Life of New York Flexible Portfolio Annuity Account is a
separate account established and maintained by IDS Life Insurance
Company of New York (IDS Life of New York).
This Statement of Additional Information, dated ______ 1996, is not
a prospectus. It should be read together with the Account's
prospectus, dated ______ 1996, which may be obtained from your
financial advisor, or by writing or calling IDS Life of New York at
the address or telephone number below.
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY 12203
518-869-8613
<PAGE>
PAGE 37
TABLE OF CONTENTS
IDS Life of New York Preferred Retirement Account.............p.
Performance Information.......................................p.
Calculating Annuity Payouts...................................p.
Rating Agencies...............................................p.
Principal Underwriter.........................................p.
Independent Auditors..........................................p.
Mortality and Expense Risk Fee................................p.
Prospectus....................................................p.
Financial Statements
IDS Life Insurance Company of New York..............p.
<PAGE>
PAGE 38
IDS LIFE OF NEW YORK PREFERRED RETIREMENT ACCOUNT
The Flexible Portfolio Annuity may be used to fund the IDS Life of
New York Preferred Retirement Account (PRA) as a way to build tax-
deferred retirement income. The PRA can be used to supplement, or
as an alternative to, a non-deductible IRA or other retirement
plan.
The advantages of the IDS Life of New York Preferred Retirement
Account over a non-deductible IRA are shown below:
IDS Life of New York Non-deductible IRA
Preferred Retirement
Account
_____________________________________________________________
Maximum $50,000 to $1 million $2,000 per year
amount you initially, then $50,000 (only $250 for
can to $100,000 per year non-working spouse)
contribute depending on your
age. (spouse can have
own plan)
______________________________________________________________
Highest age The later of age 85 70 1/2 years old
you can or the 10th contract
contribute anniversary
______________________________________________________________
Types of Any type: wages, Generally limited
income you investment income, to income from
can gifts, inheritance, employment
contribute etc.
______________________________________________________________
Records None required, but You must keep all
you must IDS Life of New York records yourself
keep furnishes you regular
reports for your files
______________________________________________________________
Reports you None You must report all
must file contributions and
with the withdrawals each
IRS year
______________________________________________________________
Age at which The later of age 85 70 1/2 years old
you must or the 10th contract
begin anniversary
withdrawals
______________________________________________________________
<PAGE>
PAGE 39
PERFORMANCE INFORMATION
The following performance figures are calculated on the basis of
historical performance of the funds. The performance figures
relating to these funds assume that the contract was in existence
prior to _____, which it was not. Performance figures are
calculated on the basis of historical performance of the funds.
Before the subaccounts began investing in these funds, the figures
show what the subaccount performance would have been if these
subaccounts had existed during the illustrated periods. Once these
subaccounts began investing in these funds, actual values are used
for the calculations.
Calculation of yield for Subaccount GM (Investing in IDS Life
Moneyshare Fund)
Subaccount GM, which invests in IDS Life Moneyshare Fund, Inc.,
calculates an annualized simple yield and a compound yield based on
a seven-day period.
The simple yield is calculated by determining the net change in the
value of a hypothetical subaccount having the balance of one
accumulation unit at the beginning of the seven-day period. (The
net change does not include capital change, but does include a pro
rata share of the annual contract charges, including the annual
contract administrative charge and the mortality and expense risk
fee.) The net change in the subaccount value is divided by the
value of the subaccount at the beginning of the period to obtain
the return for the period. That return is then multiplied by 365/7
to obtain an annualized figure. 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.
The subaccount calculates its compound yield according to the
following formula:
365/7
Compound Yield = [(return for seven-day period +1) ] - 1
Based on the historical performance of the Fund on Dec. 31, 199_,
the subaccount's annualized simple yield would have been ____% and
its compound yield would have been ____% had the subaccount been in
existence.
The rate of return, or yield, on the subaccount's accumulation unit
may fluctuate daily and does not provide a basis for determining
future yields. Investors must consider, when comparing an
investment in subaccount GM with fixed annuities, that fixed
annuities often provide an agreed-to or guaranteed fixed yield for
a stated period of time, whereas the variable subaccount's yield
fluctuates. In comparing the yield of subaccount GM to a money
market fund, you should consider the different services that the
annuity provides.
<PAGE>
PAGE 40
Calculation of yield for 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.
Based on the historical performance of the Fund, on Dec. 31, 199_,
the subaccount's annualized yield would have been ____% had this
subaccount been in existence.
Calculation of average annual total return
Quotations of average annual total return for a subaccount will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in the annuity contract over a period
of one, five and 10 years (or, if less, up to the life of the
account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
<PAGE>
PAGE 41
The following performance figures are calculated on the basis of
historical performance of the funds. These figures show what the
performance of the subaccounts of the variable account would have
been if these subaccounts had existed during the illustrated
periods.
Average Annual Total Return For Period Ended: Dec. 31, 199_
Average Annual Total Return with Surrender
<TABLE><CAPTION>
Since
Subaccount investing in: 1 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C>
IDS Life
Aggressive Growth Fund (1/92)
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
AIM
AIM V.I. Growth and Income Fund (5/94)
PCM
New Opportunities Fund (5/94)
Warburg Pincus Trust
Small Company Growth Portfolio (6/95)
Average Annual Total Return without Surrender
Since
Subaccount investing in: 1 Year 5 Year 10 Year Inception
IDS Life
Aggressive Growth Fund (1/92)
Capital Resource Fund (10/81)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
AIM
AIM V.I. Growth and Income Fund (5/94)
PCM
New Opportunities Fund (5/94)
Warburg Pincus Trust
Small Company Growth Portfolio (6/95)
</TABLE>
Aggregate Total Return
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) and is computed
by the following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000.
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five,
or ten year (or other) period at the end of the
one, five, or ten year (or other) period (or
fractional portion thereof).
<PAGE>
PAGE 42
The Securities and Exchange Commission requires that an assumption
be made that the contract owner surrenders the entire contract at
the end of the one, five and ten year periods (or, if less, up to
the life of the account) for which performance is required to be
calculated. In addition, performance figures may be shown without
the deduction of a surrender charge. Total return figures reflect
the deduction of the contract administrative charge and mortality
and expense risk fee.
Performance of the subaccounts may be quoted or compared to
rankings, yields, or returns as published or prepared by
independent rating or statistical services or publishers or
publications such as The Bank Rate Monitor National Index,
Barron's, Business Week, Donoghue's Money Market Fund Report,
Financial Services Week, Financial Times, Financial World, Forbes,
Fortune, Global Investor, Institutional Investor, Investor's Daily,
Kiplinger's Personal Finance, Lipper Analytical Services, Money,
Mutual Fund Forecaster, Newsweek, The New York Times, Personal
Investor, Stanger Report, Sylvia Porter's Personal Finance, USA
Today, U.S. News and World Report, The Wall Street Journal and
Wiesenberger Investment Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
subaccounts of the variable account. The separate monthly payouts,
added together, make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date.
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your subaccount is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
subaccount is fixed. The value of the units fluctuates with the
performance of the underlying mutual fund.
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.
<PAGE>
PAGE 43
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.
Substitution of 3.5% Table: If you ask us at least 30 days before
the retirement date, we will substitute an annuity table based on
an assumed 3.5% investment rate for the 5% table in the contract.
The assumed investment rate affects both the amount of the first
payout and the extent to which subsequent payouts increase or
decrease. Using the 5% table results in a higher initial payment,
but later payouts will increase more slowly when annuity unit
values are rising and decrease more rapidly when they are
declining.
Annuity Unit Values: This value was originally set at $1 for each
variable subaccount. To calculate later values we multiply the
last annuity value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
Net Investment Factor:
o Determined each business day by adding the underlying mutual
fund's current net asset value per share plus per share amount of
any current dividend or capital gain distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying mutual fund may
fluctuate, the net investment factor may be greater or less than
one, and the accumulation unit value may increase or decrease. You
bear this investment risk in a variable subaccount.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or the
date you have selected to begin receiving your annuity payouts; then
o using an annuity table we apply the value according to the
annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
<PAGE>
PAGE 44
RATING AGENCIES
The following chart reflects the ratings given to IDS Life of New
York 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 annuity. This information relates only to the
fixed account and reflects IDS Life of New York'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
Moody's Aa2
PRINCIPAL UNDERWRITER
The principal underwriter for the variable account is American
Express Financial Advisors Inc., which offers the variable
annuities on a continuous basis.
INDEPENDENT AUDITORS
[To be filed by Amendment]
MORTALITY AND EXPENSE RISK FEE
IDS Life of New York has represented to the SEC that:
IDS Life of New York has reviewed publicly available information
regarding products of other companies. Based upon this review, IDS
Life of New York has concluded that the mortality and expense risk
fee is within the range of charges determined by industry practice.
IDS Life of New York will maintain at its administrative office,
and make available on request of the SEC or its staff, a memorandum
setting forth in detail the variable products analyzed and the
methodology, and results of, its comparative review.
IDS Life of New York has concluded that there is a reasonable
likelihood that the proposed distribution financing arrangements
made with respect to the contracts will benefit the variable
account and investors in the contracts. The basis for such
conclusion is set forth in a memorandum which will be made
available to the SEC or its staff on request.
PROSPECTUS
The prospectus dated ______ 1996, is hereby incorporated in this
Statement of Additional Information by reference.
<PAGE>
PAGE 45
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by amendment.
(b) Exhibits:
1. Consent in writing in Lieu of Meeting of IDS Life of New York
establishing the IDS Life of New York Flexible Portfolio
Annuity Account dated on April 17, 1996, filed electronically
herewith.
2. Not applicable.
3. Not applicable.
4.1 Copy of Qualified Deferred Annuity Contract Form No. 31037-NY
(10/95) filed electronically herewith.
4.2 Copy of Non-Qualified Deferred Annuity Contract, Form No.
31036-NY (10/95), filed electronically herewith.
4.3 Copy of Deferred Annuity Contract (IRA), Form No. 31038-NY
(10/95), filed electronically herewith.
4.4 Copy of Deferred Annuity Contract (SEP), Form No. 31039-NY
(10/95), filed electronically herewith.
5 Form of Application to be filed by amendment.
6.1 Copy of the revised charter of IDS Life of New York dated
April 1992, filed electronically herewith.
6.2 Copy of Amended By-Laws of IDS Life of New York dated May
1992, filed electronically herewith.
7. Not applicable.
8. Form of Participation Agreement to be filed by amendment.
9. Opinion of counsel to be filed by amendment.
10. Consent of Independent Auditors to be filed by amendment.
11. Not applicable.
12. Not applicable.
13. Copy of schedule for computation of each performance quotation
provided in the Registration Statement in response to Item 21,
filed electronically herewith.
14. Financial Data Schedule to be filed by amendment.
15 Power of Attorney to sign this Registration Statement dated
April 16, 1996, filed electronically herewith.<PAGE>
PAGE 46
<TABLE><CAPTION>
Item 25. Directors and Officers of the Depositor (IDS Life
Insurance Company of New York)
Positions and
Name Principal Business Address Offices with Depositor
<C> <C> <C>
Mario Alaia 20 Madison Avenue Extension Claims Officer and
Albany, NY Assistant Secretary
Tracy A. Anderson IDS Tower 10 Treasurer and Chief Actuary
Minneapolis, MN 55440
Darrell C. Beckstrom IDS Tower 10 Underwriting Officer
Minneapolis, MN 55440
John C. Boeder 20 Madison Avenue Extension Director
Albany, NY
Roger C. Corea 20 Madison Avenue Extension Director
Albany, NY
Charles A. Cuccinello 20 Madison Avenue Extension Director
Albany, NY
Milton R. Fenster 20 Madison Avenue Extension Director
Albany, NY
Donna M. Gaglione 20 Madison Avenue Extension Secretary
Albany, NY
Margaret M. Grogan, M.D. Bethlehem Terrace Apts. Medical Director
Slingerland, NY
Lorraine R. Hart IDS Tower 10 Investment Officer
Minneapolis, MN 55440
Robert A. Hatton IDS Tower 10 Director, Vice
Minneapolis, MN 55440 President and Chief
Operating Officer
Richard W. Kling IDS Tower 10 Director, Chairman of
Minneapolis, MN 55440 the Board and President
Edward Landes IDS Tower 10 Director
Minneapolis, MN 55440
Janis E. Miller IDS Tower 10 Executive Vice President
Minneapolis, MN 55440
Michael P. Monaco World Financial Center Director
New York, NY
<PAGE>
PAGE 47
<C> <C> <C>
Stephen P. Norman World Financial Center Director
New York, NY
Kevin E. Palmer IDS Tower 10 Reinsurance Actuary
Minneapolis, MN 55440
Louise M. Parent World Financial Center Director
New York, NY
Carl N. Platou IDS Tower 10 Director
Minneapolis, MN 55440
Gordon H. Ritz 404 WCCO Radio Bldg. Director
Minneapolis, MN
F. Dale Simmons IDS Tower 10 Vice President and
Minneapolis, MN 55440 Assistant Treasurer
William A. Stoltzmann IDS Tower 10 Counsel and Assistant
Minneapolis, MN 55440 Secretary
Michael R. Woodward 20 Madison Avenue Extension Director
Albany, NY
</TABLE>
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
IDS Life Insurance Company of New York is a wholly owned
subsidiary of IDS Life Insurance Company which is a
wholly owned subsidiary of American Express Financial
Corporation. American Express Financial Corporation is a
wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Companies engaged in Investors Diversified Financial Services
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Insurance Agency of Nevada Inc. Nevada<PAGE>
PAGE 48
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Tax and Business Services Inc. Minnesota
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
AMEX Assurance Company Illinois
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Ltd. Mississippi
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant (Continued)
Jurisdiction
Name of Subsidiary of Incorporation
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
None.
Item 28. Indemnification
The By-Laws of the depositor provide that it shall
indemnify any person who was or is a party or is <PAGE>
PAGE 49
threatened to be made a party, by reason of the fact that
he is or was a director, officer, employee or agent of
this Corporation, or is or was serving at the direction
of the Corporation as a director, officer, employee or
agent of another corporation, partnership, joint venture,
trust or other enterprise, to any threatened, pending or
completed action, suit or proceeding, wherever brought,
to the fullest extent permitted by the laws of the State
of Minnesota, as now existing or hereafter amended,
provided that this Article shall not indemnify or protect
any such director, officer, employee or agent against any
liability to the Corporation or its security holders to
which he would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence, in the
performance of his duties or by reason of his reckless
disregard of his obligations and duties.
Insofar as indemnification for liability arising under the
Securities Act of 1933 may be permitted to director, officers and
controlling persons of the registrant pursuant to the foregoing
provisions, or otherwise, the registrant has been advised that in
the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by
the registrant of expenses incurred or paid by a director, officer
or controlling person of the registrant in the successful defense
of any action, suit or proceeding) is asserted by such director,
officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of its
counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in
the Act and will be governed by the final adjudication of such
issue.
Item 29. Principal Underwriters.
(a) American Express Financial Advisors acts as principal
underwriter for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-Exempt
Fund, Inc.; IDS International Fund, Inc.; IDS Investment
Series, Inc.; IDS Managed Retirement Fund, Inc.; IDS Market
Advantage Series, Inc.; IDS Money Market Series, Inc.; IDS New
Dimensions Fund, Inc.; IDS Precious Metals Fund, Inc.; IDS
Progressive Fund, Inc.; IDS Selective Fund, Inc.; IDS Special
Tax-Exempt Series Trust; IDS Stock Fund, Inc.; IDS Strategy
Fund, Inc.; IDS Tax-Exempt Bond Fund, Inc.; IDS Tax-Free Money
Fund, Inc.; IDS Utilities Income Fund, Inc. and IDS
Certificate Company.
<PAGE>
PAGE 50
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Total None
IDS Tower 10 Compensation
Minneapolis, MN 55440
Peter J. Anderson Senior Vice President- None
IDS Tower 10 Investments
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 Sales and Marketing,
Minneapolis, MN 55440 American Express
Institutional Retirement
Services
Alvan D. Arthur Group Vice President- None
Suite 105 Central California/
2710 S. Gateway Oaks Dr. Western Nevada
Sacramento, CA 95833
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Robert C. Basten Vice President-Tax None
IDS Tower 10 and Business Services
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Risk None
IDS Tower 10 Management Products
Minneapolis, MN 55440
<PAGE>
PAGE 51
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John D. Begley Group Vice President- None
Suite 100 Ohio/Indiana
7760 Olentangy River Rd.
Columbus, OH 43235
Carl E. Beihl Vice President- None
IDS Tower 10 Strategic Technology
Minneapolis, MN 55440 Planning
Jack A. Benjamin Group Vice President- None
Suite 200 Greater Pennsylvania
3500 Market Street
Camp Hill, PA 17011
Alan F. Bignall Vice President- None
IDS Tower 10 Technology and Development
Minneapolis, MN 55440
Brent L. Bisson Group Vice President- None
Ste 900 E. Westside Twr Los Angeles Metro
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President- Director
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President- None
Suite 200 New Jersey
3500 Market Street
Camp Hill, NJ 17011
Bruce J. Bordelon Group Vice President- None
Galleria One Suite 1900 Gulf States
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President- None
Suite 200 Northwest
West 111 North River Dr
Spokane, WA 99201
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special Counsel
Harold E. Burke Vice President None
IDS Tower 10 and Assistant
Minneapolis, MN 55440 General Counsel<PAGE>
PAGE 52
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
Cynthia M. Carlson Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Securities Services
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Group Vice President- Director
290 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Commerce Center One Connecticut
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President- None
Suite 200 Arkansas/Springfield/Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
Kevin F. Crowe Group Vice President- None
Suite 312 Carolinas/Eastern Georgia
7300 Carmel Executive Pk
Charlotte, NC 28226
Colleen Curran Vice President and None
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Alan R. Dakay Vice President- None
IDS Tower 10 Institutional Products
Minneapolis, MN 55440 Group
Regenia David Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
<PAGE>
PAGE 53
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Scott M. DiGiammarino Group Vice President- None
Suite 500 Washington/Baltimore
8045 Leesburg Pike
Vienna, VA 22182
Bradford L. Drew Group Vice President- None
Two Datran Center Eastern Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
William H. Dudley Director and Executive None
IDS Tower 10 Vice President-
Minneapolis MN 55440 Investment Operations
Roger S. Edgar Senior Vice President None
IDS Tower 10 and Technology Advisor
Minneapolis, MN 55440
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Robert M. Elconin Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President- None
One Old Mill Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Louise P. Evenson Group Vice President- None
Suite 200 San Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Douglas L. Forsberg Group Vice President- None
Suite 100 Portland/Eugene
7931 N. E. Halsey
Portland, OR 97213
<PAGE>
PAGE 54
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William P. Fritz Group Vice President- None
Suite 160 Northern Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
Carl W. Gans Group Vice President- None
8500 Tower Suite 1770 Twin City Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
Robert G. Gilbert Vice President- None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
John J. Golden Vice President- None
IDS Tower 10 Field Compensation
Minneapolis, MN 55440 Development
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Suzanne Graf Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Bruce M. Guarino Group Vice President- None
Suite 1736 Hawaii
1585 Kapiolani Blvd.
Honolulu, HI 96814
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Suites 6&7 Northern New England
169 South River Road
Bedford, NH 03110
John R. Hantz Group Vice President- None
Suite 107 Detroit Metro
17177 N. Laurel Park
Livonia, MI 48154
Robert L. Harden Group Vice President- None
Two Constitution Plaza Boston Metro
Boston, MA 02129
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440<PAGE>
PAGE 55
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Scott A. Hawkinson Vice President-Assured None
IDS Tower 10 Assets Product Development
Minneapolis, MN 55440 and Management
Brian M. Heath Group Vice President- None
Suite 150 North Texas
801 E. Campbell Road
Richardson, TX 75081
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
30 Burton Hills Blvd. Eastern Tennessee
Suite 175
Nashville, TN 37215
Kevin P. Howe Vice President- None
IDS Tower 10 Government and
Minneapolis, MN 55440 Customer Relations and
Chief Compliance Officer
David R. Hubers Chairman, Chief None
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Marietta L. Johns Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Information
Minneapolis, MN 55440
Linda B. Keene Vice President- None
IDS Tower 10 Market Development
Minneapolis, MN 55440
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
<PAGE>
PAGE 56
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices with
Business Address with Underwriter Registrant
Richard W. Kling Senior Vice President- Chairman of
IDS Tower 10 Risk Management Products the Board and
Minneapolis, MN 55440 President
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
Ste 108 Trestle Bridge V Greater Michigan
5136 Lovers Lane
Kalamazoo, MI 49002
Steven C. Kumagai Director and Senior None
IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management and Business
Systems
Mitre Kutanovski Group Vice President- None
Suite 680 Chicago Metro
8585 Broadway
Merrillville, IN 48410
Edward Labenski Jr. Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Lori J. Larson Vice President- None
IDS Tower 10 Variable Assets Product
Minneapolis, MN 55440 Development
Ryan R. Larson Vice President- None
IDS Tower 10 IPG Product Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
<PAGE>
PAGE 57
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Peter A. Lefferts Senior Vice President- None
IDS Tower 10 Corporate Strategy and
Minneapolis, MN 55440 Development
Douglas A. Lennick Director and Executive None
IDS Tower 10 Vice President-Private
Minneapolis, MN 55440 Client Group
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Field Marketing Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President- None
Suite 650 Pittsburgh Metro
5700 Corporate Drive
Pittsburgh, PA 15237
William J. McKinney Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440 Support
Thomas W. Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
Janis E. Miller Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Union Plaza Suite 900 Kansas/Oklahoma
3030 Northwest Expressway
Oklahoma City, OK 73112
<PAGE>
PAGE 58
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Pamela J. Moret Vice President- None
IDS Tower 10 Corporate Communications
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President- None
Suite 200 At Large
3500 Market Street
Camp Hill, NJ 17011
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Mary Owens Neal Vice President- None
IDS Tower 10 Mature Market Segment
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Technology Services
Minneapolis, MN 55440
Ronald E. Newton Group Vice President- None
319 Southbridge St. Rhode Island/Central
Auburn, MA 01501 Massachusetts
Thomas V. Nicolosi Group Vice President- None
Suite 220 New York Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
James R. Palmer Vice President- None
IDS Tower 10 Taxes
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
One Tower Bridge Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
<PAGE>
PAGE 59
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
James M. Punch Vice President- None
IDS Tower 10 Geographical Service
Minneapolis, MN 55440 Teams
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
R. Daniel Richardson Group Vice President- None
Suite 800 Southern Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
Roger B. Rogos Group Vice President- None
One Sarasota Tower Western Florida
Suite 700
Two N. Tamiami Trail
Sarasota, FL 34236
ReBecca K. Roloff Vice President-1994 None
IDS Tower 10 Program Director
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Max G. Roth Group Vice President- None
Suite 201 S IDS Ctr Wisconsin/Upper Michigan
1400 Lombardi Avenue
Green Bay, WI 54304
Robert A. Rudell Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Institutional Retirement
Services
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Suite 402
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Suite 201 Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
<PAGE>
PAGE 60
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
William G. Scholz Group Vice President- None
Suite 205 Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Assured Assets
Minneapolis, MN 55440
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager,
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development
Julian W. Sloter Group Vice President- None
Ste 1700 Orlando FinCtr Orlando/Jacksonville
800 North Magnolia Ave.
Orlando, FL 32803
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private
Minneapolis, MN 55440 Client Group
James B. Solberg Group Vice President- None
466 Westdale Mall Eastern Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Suite 1100 Southern California
Two Park Plaza
Irvine, CA 92714
<PAGE>
PAGE 61
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Lois A. Stilwell Group Vice President- None
Suite 433 Outstate Minnesota Area/
9900 East Bren Road North Dakota/Western
Minnetonka, MN 55343 Wisconsin
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440
Neil G. Taylor Group Vice President- None
Suite 425 Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
John R. Thomas Senior Vice President- None
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Senior Vice President None
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
Peter S. Velardi Group Vice President- None
Suite 180 Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice President- None
Suite 100 Denver/Salt Lake City/
Stanford Plaza II Albuquerque
7979 East Tufts Ave Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
1010 Main St Suite 2B Field Management
Huntington Beach, CA 92648<PAGE>
PAGE 62
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Michael L. Weiner Vice President- None
IDS Tower 10 Tax Research and Audit
Minneapolis, MN 55440
James M. Weiss Vice President-Senior
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President- None
IDS Tower 10 Equity and Fixed Income
Minneapolis, MN 55440 Trading
William N. Westhoff Senior Vice President and None
IDS Tower 10 Global Chief Investment
Minneapolis, MN 55440 Officer
Thomas L. White Group Vice President- None
Suite 200 Cleveland Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President- None
Suite 250 Virginia
3951 Westerre Parkway
Richmond, VA 23233
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael R. Woodward Senior Vice President- Director
32 Ellicott St Ste 100 Field Management
Batavia, NY 14020
<PAGE>
PAGE 63
Item 30. Location of Accounts and Records
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, NY 12203
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) Registrant undertakes to file a post-effective
amendment to this registration statement as
frequently as is necessary to ensure that the
audited financial statements in the
registration statement are never more than 16
months old for so long as payments under the
variable annuity contracts may be accepted.
(b) Registrant undertakes to include either (1) as
part of any application to purchase a contract
offered by the prospectus, a space that an
applicant can check to request a Statement of
Additional Information, or (2) a post card 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.
(d) Registrant represents that it is relying upon
the no-action assurance given to the American
Council of Life Insurance (pub. avail. Nov. 28,
1988). Further, Registrant represents that it
has complied with the provisions of paragraphs
(1)-(4) of that no-action letter.
<PAGE>
PAGE 64
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, IDS Life Insurance Company of New York, on
behalf of the Registrant has duly caused this Registration
Statement to be signed on its behalf in the City of Minneapolis,
and State of Minnesota, on the 15th day of May, 1996.
IDS LIFE OF NEW YORK FLEXIBLE PORTFOLIO ANNUITY ACCOUNT
(Registrant)
By IDS Life Insurance Company of New York
(Sponsor)
By /s/ Richard W. Kling
Richard W. Kling
President
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 15th day of May, 1996.
Signature Title
/s/ Richard W. Kling* Director, Chairman of the
Richard W. Kling Board and President
/s/ John C. Boeder* Director
John C. Boeder
/s/ Roger C. Corea* Director
Roger C. Corea
/s/ Charles A. Cuccinello* Director
Charles A. Cuccinello
/s/ Milton R. Fenster* Director
Milton R. Fenster
/s/ Robert Hatton* Director, Vice President
Robert Hatton and Chief Operating Officer
/s/ Edward Landes* Director
Edward Landes
/s/ Michael P. Monaco* Director
Michael P. Monaco
/s/ Stephen P. Norman* Director
Steven P. Norman
/s/ Louise M. Parent* Director
Louise M. Parent
<PAGE>
PAGE 65
Signature Title
/s/ Carl Platou* Director
Carl Platou
/s/ Gordon H. Ritz* Director
Gordon H. Ritz
/s/ Michael R. Woodward* Director
Michael R. Woodward
*Signed pursuant to Power of Attorney dated April 16, 1996, filed
electronically herein by:
___________________________
Mary Ellyn Minenko
<PAGE>
PAGE 66
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
IDS Life of New York Variable Annuity Account
EXHIBIT INDEX
Exhibit 1 Resolution of the Board of Directors of
IDS Life of New York
Exhibit 4.1 Form of Qualified Deferred Annuity Contract
Form No. 31037-NY (10/95)
Exhibit 4.2 Form of Non-Qualified Deferred Annuity Contract
Form No. 31036-NY (10/95)
Exhibit 4.3 Form of Deferred Annuity Contract
Form No. 31038-NY (10/95)
Exhibit 4.4 Form of Deferred Annuity Contract
Form No. 31039-NY (10/95)
Exhibit 6.1 Revised Charter of IDS Life of New York
Exhibit 6.2 Copy of Amended By-Laws of IDS Life of New York
Exhibit 13 Schedule for computation of each performance
quotation
Exhibit 15 Power of Attorney to sign this Registration
Statement
<PAGE>
PAGE 1
CONSENT IN WRITING IN LIEU
OF MEETING OF BOARD OF DIRECTORS
TO THE SECRETARY OF
IDS LIFE INSURANCE COMPANY OF NEW YORK
By this consent in writing in lieu of a meeting of the Board of
Directors of IDS Life Insurance Company of New York, a New York
corporation, we the Directors of said Corporation do hereby consent
to and authorize the adoption of the following resolution to be
effective immediately upon receipt by the Secretary of the
Corporation:
WHEREAS, This Board of Directors has determined that it is
desirable for the Corporation to develop a new flexible premium
deferred combination fixed and variable annuity contract to be
issued by the Corporation. Now, therefore, be it
RESOLVED, That IDS Life of New York Flexible Portfolio Annuity
Account, comprised of one or more subaccounts, is hereby
established as a separate account in accordance with Section 4240,
New York Insurance Law and New York Insurance Regulation 47;
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to establish such subaccounts
within such separate account as they determine to be appropriate;
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed, as they may deem appropriate
from time to time and in accordance with applicable laws and
regulations to: establish further any subaccounts; change the
designation of the separate account to another designation; and
deregister the separate account;
<PAGE>
PAGE 2
RESOLVED FURTHER, That the proper officers of the Corporation
are hereby authorized and directed to accomplish all filings,
registrations, and applications for exemptive relief necessary to
carry the foregoing into effect.
/s/ John C. Boeder /s/ Michael P. Monaco
John C. Boeder Michael P. Monaco
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
/s/ Charles A. Cuccinello /s/ Louise M. Parent
Charles A. Cuccinello Louise M. Parent
/s/ Milton R. Fenster /s/ Carl N. Platou
Milton R. Fenster Carl N. Platou
/s/ Robert A. Hatton /s/ Gordon H. Ritz
Robert A. Hatton Gordon H. Ritz
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Edward Landes
Edward Landes
Dated: 4-16-96
Received by the Secretary
April 17, 1996
/s/ Donna M. Gaglione
Donna M. Gaglione<PAGE>
<PAGE>
PAGE 1
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9910-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company of
New York, a Stock Company. PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company of New York, in
Albany, New York, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract and refund all premiums which you
have paid. This contract will then be considered void from its
start.
President
/s/ Richard W. Kling
Secretary
/s/ Donna M. Gaglione
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based on incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary;
Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments
Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 10
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 12
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9900-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Portfolio Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable
subaccounts as shown below. You may change the amount, frequency
and allocations as provided in this contract. Refer to the
purchase payments provision on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payment
SubAccounts Mutual Fund Allocation Percentage
GC IDS Life Capital Resource Fund 10%
GS IDS Life Special Income Fund 5%
GM IDS Life Moneyshare Fund 5%
GD IDS Life Managed Fund 5%
GI IDS Life International Equity Fund 5%
GA IDS Life Aggressive Growth Fund 10%
GE IDS Life Portfolio Equity Income Fund 10%
GG IDS Life Global Yield Fund 10%
GY IDS Life Government Yield Fund 10%
PG Putnam Growth & Income 5%
OH Oppenheimer High Income 5%
AV AIM Value Fund 5%
TD Templeton Developing Market Fund 5%
RO T. Rowe Price OTC Fund 5%
Fixed Account 5%
Schedule of Surrender Charges
Surrender Charge Applied to
Contract Year Purchase Payments Surrendered
1 Through 3 7%
4 6%
5 5%
6 4%
7 3%
8 2%
Thereafter 0%<PAGE>
PAGE 4
CONTRACT DATA (continued)
Contract Administrative Charge: $30 annually. Charge is waived if
contract value, or purchase
payments less purchase payments
surrendered, equals or exceeds
$25,000. See Page 8.
Maximum Purchase Payments Permitted:
1st contract year: $1,000,000
Each contract year thereafter: $100,000
In order for the dollar amount of variable annuity payments not to
decrease, the assets of the variable accounts must have an annual
net rate of investment return of 5%. This is equal to a 6% gross
investment return minus the 1% risk charge.
Annuitant: John Doe Contract Number: 9910-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $30 annual contract administrative charge (waived when
purchase payments less surrenders equals or exceeds $25,000). If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE><CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $1,189.41 $1,105.41 11 $15,233.75 $15,233.75
2 2,414.51 2,246.51 12 16,880.17 16,880.17
3 3,676.35 3,424.35 13 18,575.99 18,575.99
4 4,976.06 4,688.06 14 20,322.68 20,322.68
5 6,314.75 6,014.75 15 22,121.77 22,121.77
6 7,693.60 7,405.60 16 23,974.84 23,974.84
7 9,113.82 8,861.82 17 25,913.49 25,913.49
8 10,576.65 10,384.65 18 27,910.31 27,910.31
9 12,083.36 12,083.36 19 29,967.03 29,967.03
10 13,635.27 13,635.27 20 32,085.45 32,085.45
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.
<PAGE>
PAGE 5
CONTRACT DATA (continued)
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
rate of 4.65% compounded annually. If a new rate is declared, it
will apply to amounts paid or allocated to the fixed account after
the new rate is effective.
Annuitant: John Doe Contract Number: 9910-1234567
Paid-Up Fixed Dollar Annuity Table
The table below shows the guaranteed monthly fixed dollar annuity
payment (based on annuity payment Plan B of 10 years certain and
life) if monthly purchase payments are paid for the number of years
indicated and then left to accumulate to the assumed retirement
date.* The amounts shown are based on the following assumptions:
(1) $100 monthly purchase payments are received by the company at
the beginning of each contract month and allocated to the fixed
account; and (2) there have been no surrenders or premium tax
charges. Otherwise, the amounts below will be adjusted in
accordance with the provisions of this contract.
* Assumed retirement date is equal to the later of: (1) the
annuitant's age 65 contract anniversary; or (2) the 10th contract
anniversary; but in no event later than the annuitant's age 75
contract anniversary.
<TABLE><CAPTION>
Monthly Fixed Monthly Fixed
Number of Dollar Annuity Number of Dollar Annuity
Years Purchase Payment at Assumed Years Purchase Payment at Assumed
Payments Made Retirement Date Payments made Retirement Date
<C> <C> <C> <C>
1 $ 6.97 11 $125.57
2 20.42 12 135.89
3 33.47 13 145.95
4 46.15 14 155.74
5 58.46 15 165.28
6 70.40 16 174.58
7 82.00 17 183.42
8 93.27 18 191.80
9 104.20 19 199.94
10 114.81 20 207.84
25 244.01
30 275.22
</TABLE>
If purchase payments are paid to the assumed retirement date, the
guaranteed fixed account contract value at such date will be
$57,099.36 and the guaranteed monthly fixed dollar annuity payment
will be $275.22.<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract. The owner is also the annuitant,
except when your tax-qualified retirement plan requires a trustee
or custodial owner. The owner may be changed as provided in this
contract.
we, our, us
IDS Life Insurance Company of New York.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable
subaccounts on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the Fixed Account Contract Value (which receives a
declared interest rate) and the Variable Account Contract Value
(which varies with the investment performance of the elected
subaccounts) for this contract.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 7
DEFINITIONS (continued)
settlement
The application of the contract value of this contract to an
Annuity Payment Plan to provide annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable subaccounts
The portfolios of the Variable Account. The subaccounts available
on the contract date are named under Contract Data.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable subaccounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 8
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age that is incorrect, benefits will be recalculated on the basis
of the correct data. Any underpayments made by us will immediately
be paid in a single sum with an interest credit of 6% per annum.
Any overpayments made by us will be subtracted from the future
payments together with an interest charge of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Federal Laws
This contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax
qualification, despite any other provisions to the contrary. We
reserve the right to amend this contract to reflect any
clarifications that may be needed or are appropriate to maintain
such qualification or to conform the contract to any applicable
changes in the tax qualification requirements. We will send you a
copy of any such amendments.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.<PAGE>
PAGE 9
GENERAL PROVISIONS (continued)
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
Payments By Us
All sums payable by us are payable from our home office. Any
payment of a variable annuity or surrender based on the variable
contract value shall be payable only from the variable subaccounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
Trustee or custodian owners shall cast votes according to
instructions received from appropriate annuitants. All other votes
of such trustee or custodian under the same trust or custodial
agreement shall be cast in the same proportion. If no instructions
are received, the votes may be cast at the trustee's or custodian's
discretion.
<PAGE>
PAGE 10
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us.
Trust or Custodial Ownership
If you are a tax qualified trust or tax qualified custodial
account, then your trustees or custodian (or their successors)
properly named by your trust or custodial agreement may exercise
all rights and privileges provided in this contract or allowed by
us.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for performance of
an obligation or for any other purpose to any person other than to
us. However, if you are a trust or a custodian or an employer as a
part of a qualified plan under Sections 401 or 403 or a deferred
compensation plan under Section 457 of the Internal Revenue Code of
1986, you may transfer ownership of this contract to the annuitant.
Such transfer must be on a form approved by us.
The change must be made while the annuitant is living. Once the
change is received by us, it will take effect as of the date of
your request, subject to any action taken or payment made by us
before the receipt.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Unless you have provided otherwise, and if the beneficiary(ies)
is(are) a natural person(s), only those beneficiaries who are
living on the date of death may share in the benefits, if any. If
no beneficiary is then living, we will pay the benefits to your
estate.
If the owner is a tax qualified trust or tax qualified custodial
account, then for purposes of distribution to a beneficiary, the
annuitant is deemed to be the owner.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant dies before the retirement date and age 75, while
this contract is in force we will pay to the beneficiary the
greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered since that
anniversary; or
3. the purchase payments paid less any amounts
surrendered.
If the annuitant or owner dies before the retirement date and on or
after the annuitant's 75th birthday, while this contract is in
force, we will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered since that
anniversary.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant. The beneficiary may elect to
receive payment anytime within 5 years after the date of death of
the annuitant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
Spouse Option to Continue Contract Upon Owner's Death
If the annuitant dies prior to the retirement date, a spouse who is
designated as sole beneficiary, may elect in writing to forego
receipt of the death benefit and instead continue this contract in<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY (continued)
force. The election by the spouse must be made within 60 days
after we receive due proof of death.
In this event, the retirement date may not be later than the April
1 following the calendar year in which the annuitant would have
attained 70 1/2, or such other date which allows the spouse to
satisfy the minimum distribution requirements under the Internal
Revenue Code of 1986, as amended, its regulation and/or
promulgations by the Internal Revenue Service.
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 13
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data.
Minimum Purchase Payments - The minimum purchase payment is $50 per
month which on a annualized basis equals $600.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
of the contract date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment<PAGE>
PAGE 14
PURCHASE PAYMENTS (continued)
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 15
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed Account
Contract Value; and (2) the Variable Account Contract Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable subaccounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable subaccounts that you specify. Otherwise, the number of
units from the variable subaccounts and the amount from the fixed
account will be deducted in the same proportion that your interest
in each bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $30 per year and is deducted from the
contract value at the end of each contract year or, if earlier,
when the contract is fully surrendered. We waive this charge if
your contract value, or your total purchase payments less any
purchase payments surrendered, equals or exceeds $25,000. The
charge does not apply after settlement of this contract under an
annuity payment plan.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 16
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable subaccounts to another one
or more of the variable subaccounts. Subject to item
2, you may also transfer values held in one or more of
the variable subaccounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable subaccounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
subaccount to the fixed account may be made until the
next contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. The minimum
automated transfer is $50.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable subaccounts; and
(2) those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Contract
Data. We have allocated a part of our assets for this contract to
the variable accounts. Such assets remain our property. However,
they may not be charged with the liabilities from any other
business in which we may take part.
Investments of the Variable Account
Purchase payments applied to the variable subaccounts will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that
subaccount under Contract Data or as later added or changed.
We may change the mutual funds from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Contract Data. We may also add additional subaccounts investing in
other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this contract is delivered.
Valuation of Assets
Mutual fund shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payment and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this contract. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
The amount of any Contract Administrative Charge, or other
applicable charges or partial surrenders from the variable account
contract value will reduce the number of units credited to the
contract in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the contract
in that subaccount while a transfer into a subaccount will increase
the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable
subaccounts for the last prior valuation period is
multiplied by the net investment factor for the same
account for the next following valuation period. The
result is the accumulation unit value. The value of an
accumulation unit may increase or decrease from one
valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable subaccount determined at the
end of the current valuation period; plus
b. the per share amount of any dividend or capital
gain distributions made by the mutual fund held in
the variable subaccount, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable account, determined at the end of
the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
<PAGE>
PAGE 19
FIXED AND VARIABLE ACCOUNTS (continued)
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an Annuity Unit for each variable subaccount was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable subaccount for the
last prior valuation period is multiplied by the net
investment factor for the subaccount for the valuation period
for which the annuity unit value is being calculated.
2. The result is multiplied by an interest factor. This is done
to neutralize the assumed investment rate which is built into
the annuity tables on page 15 and 16.
<PAGE>
PAGE 20
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
A surrender charge may apply during the first eight contract years.
To determine the charge during this period for a partial or total
surrender we first divide the contract value into two parts.
1. Contract earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Purchase payments - These are the total purchase
payments we received that have not been previously
surrendered.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first. There is no
surrender charge on contract earnings.
2. Next, if necessary, we surrender purchase payments not
previously surrendered.
The surrender charge shown under Contract Data applies to purchase
payments surrendered.
Determining Contract Earnings
Contract earnings are determined by looking at the entire contract
value, not just the earnings of a certain variable subaccount or
the fixed account.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
For example, the gains you may have in a certain variable
subaccount or interest earned in the fixed account may be offset by
losses in another variable subaccount. This may result in not
having any contract earnings available at the time of surrender.
At the time of surrender, we will surrender any amounts
representing contract earnings first in order to minimize any
applicable surrender charge.
Waiver of Surrender Charges
There are no surrender charges for:
1. Death benefit payments; or
2. Contracts settled under an Annuity Payment Plan; or
3. Amounts surrendered to meet applicable minimum distribution
requirements under the Internal Revenue Code of 1986, as
amended, its regulations and/or promulgations of the Internal
Revenue Service. Surrenders under this waiver provision are
limited to one per year unless we agree otherwise.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. You must surrender an amount equal to at least $250 or
the entire contract value, if less. The contract value
after a partial surrender must be at least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of the receipt of your
written request and the return of this contract, if
required. For surrenders from the fixed account, we
have the right to defer payment to you for up to 6
months from the date we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable subaccounts
and fixed account in the same proportion as your
interest in each bears to the contract value.
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
<PAGE>
PAGE 22
SURRENDER PROVISIONS (continued)
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable subaccounts
is not reasonably practicable; or (b) it is not
reasonably practicable to fairly determine the value of
the net assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Surrenders may be taxed
Surrenders are subject to tax and possibly penalty charges
according to the Internal Revenue Code.
<PAGE>
PAGE 23
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides for the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. The maximum Retirement Date is
the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfies the minimum
distribution requirements under the Internal Revenue
Code of 1986, as amended, its regulations and/or
promulgations by the Internal Revenue Service; or
Notwithstanding the above, the maximum Retirement Date is the later
of:
1. The contract anniversary on or preceding the
annuitant's 85th birthday; or
2. the 10th contract anniversary.
Also, if you select a new retirement date, it must be at least 30
days after we receive your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed dollar basis, a variable basis, or a combination of
both. You can schedule receipt of annuity payment according to one
of the Plans A through E below or another plan agreed to by us
provided:
1. the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a joint annuitant; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuitant, or the life expectancy of the annuitant and
a joint annuitant; and
3. the Plan selected meets the minimum death incidental
benefit requirements under the Internal Revenue Code of
1986, as amended. <PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installments for a specified period) This
provides monthly annuity payments for a period of
years. The period of years may be no less than 10 nor
more than 30.
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If you select a Plan that has a payment that is the same as another
Plan having a longer guarantee period, then the Plan with the
longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Allocation of Contract Values at Settlement
At the time of settlement under an Annuity Payment Plan you may
reallocate your contract value to the Fixed Account to provide
fixed dollar payments and/or among the variable subaccounts to
provide variable annuity payments. Unless we agree otherwise, you
may use a maximum of five variable subaccounts at any one time
during settlement.
<PAGE>
PAGE 25
ANNUITY PROVISIONS (continued)
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the fixed account contract value will be applied to the
applicable Annuity Table. This will be done in accordance with the
Payment Plan chosen. The amount payable for each $1,000 so applied
is shown in Table B on page 16.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable subaccounts.
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the 7th calendar day before the
retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 15.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first vary in amount. The
amount changes with the investment performance of the variable
subaccounts. The dollar amount of variable annuity payments after
the first is not fixed. It may change from month to month. The
dollar amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the 7th calendar
day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first. This number
of annuity units remains fixed during the annuity
payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the 7th calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
<PAGE>
PAGE 26
ANNUITY PROVISIONS (continued)
Exchange of Annuity Units
After annuity payments begin, annuity units of any variable
subaccount may be exchanged for units of any of the other variable
subaccounts. This may be done no more than once a year. Unless we
agree otherwise you may use a maximum of five variable subaccounts
at any one time. Once annuity payments start no exchanges may be
made to or from any fixed annuity.<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES
Annuity payments for each $1,000 of value applied under a Payment
Plan will be based on our table of settlement rates in effect on
the date of settlement. The amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, is
guaranteed to be not less than the amount shown in Table A for the
adjusted age of the annuitant(s). The amount of the first and all
subsequent fixed dollar annuity payments is guaranteed to be not
less than the amount shown in Table B for the adjusted age of the
annuitant(s). Adjusted Age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
Calendar Year of Calendar Year of
Annuitant's Birth Adjustment Annuitant's Birth
Adjustment
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
<TABLE><CAPTION>
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D -Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 years 5 years Same 5 years 10 years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 5.44 5.43 5.40 5.34 5.33 55 4.69 4.82 4.94 5.06 5.17
60 5.89 5.87 5.80 5.69 5.70 60 4.89 5.06 5.24 5.41 5.55
65 6.51 6.47 6.34 6.14 6.21 65 5.17 5.41 5.65 5.89 6.09
66 6.66 6.61 6.47 6.24 6.33 66 5.24 5.49 5.76 6.01 6.23
67 6.82 6.77 6.60 6.34 6.46 67 5.31 5.58 5.86 6.14 6.37
68 7.00 6.93 6.74 6.44 6.60 68 5.38 5.68 5.98 6.28 6.53
69 7.19 7.11 6.89 6.54 6.74 69 5.46 5.78 6.11 6.43 6.70
70 7.39 7.31 7.05 6.65 6.90 70 5.55 5.89 6.25 6.59 6.88
71 7.62 7.51 7.21 6.75 7.06 71 5.65 6.01 6.40 6.77 7.07
72 7.86 7.74 7.38 6.86 7.24 72 5.75 6.14 6.56 6.96 7.29
73 8.12 7.98 7.56 6.96 7.42 73 5.85 6.28 6.73 7.16 7.52
74 8.41 8.23 7.74 7.06 7.63 74 5.97 6.43 6.92 7.39 7.77
75 8.72 8.51 7.93 7.15 7.84 75 6.09 6.59 7.12 7.63 8.04
76 9.05 8.80 8.12 7.24 8.06 76 6.23 6.77 7.35 7.89 8.33
77 9.42 9.11 8.31 7.32 8.31 77 6.37 6.96 7.59 8.18 8.65
78 9.81 9.44 8.51 7.40 8.56 78 6.53 7.16 7.85 8.48 8.99
79 10.24 9.80 8.70 7.46 8.83 79 6.70 7.39 8.13 8.82 9.36
80 10.71 10.17 8.88 7.52 9.13 80 6.88 7.63 8.43 9.18 9.75
81 11.22 10.55 9.06 7.58 9.43 81 7.07 7.89 8.77 9.57 10.18
82 11.76 10.96 9.23 7.62 9.76 82 7.29 8.18 9.13 9.99 10.64
83 12.36 11.38 9.40 7.66 10.10 83 7.52 8.48 9.52 10.45 11.14
84 13.00 11.81 9.55 7.69 10.47 84 7.77 8.82 9.94 10.94 11.67
85 13.70 12.25 9.68 7.72 10.85 85 8.04 9.18 10.39 11.46 12.24
* Adjusted age of annuitant.
Table A above is based on the "1983 Individual Annuitant Mortality Table A". Settlement
rates for any age not shown above, will be calculated on the same basis as those rates shown
in the table above. Such rates will be furnished by us upon request.
<PAGE>
PAGE 28
TABLE OF SETTLEMENT RATES (Continued)
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
Fixed dollar annuity payments will not be less than those shown in Table B. In addition, the
amount of such payments will not be less than that which would be provided if a single
premium immediate annuity contract then offered by us to annuitant's in the same class were
to be purchased with the greater of: (1) the surrender value of this contract; or (2) 95% of
the contract value of this contract.
TABLE B Dollar Amount of Each Monthly Fixed Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D -Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 years 5 years Same 5 years 10 years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 4.25 4.25 4.22 4.18 4.10 55 3.47 3.62 3.77 3.90 4.01
60 4.72 4.70 4.66 4.57 4.48 60 3.71 3.90 4.10 4.28 4.42
65 5.35 5.32 5.22 5.05 4.97 65 4.01 4.28 4.54 4.79 4.99
66 5.51 5.47 5.36 5.16 5.08 66 4.08 4.36 4.65 4.91 5.13
67 5.67 5.63 5.50 5.26 5.20 67 4.16 4.46 4.76 5.04 5.28
68 5.85 5.80 5.65 5.37 5.33 68 4.24 4.56 4.89 5.19 5.43
69 6.04 5.98 5.80 5.49 5.47 69 4.33 4.67 5.02 5.34 5.61
70 6.25 6.18 5.96 5.60 5.61 70 4.42 4.79 5.16 5.51 5.79
71 6.47 6.39 6.14 5.71 5.76 71 4.52 4.91 5.31 5.69 5.99
72 6.71 6.62 6.31 5.83 5.93 72 4.63 5.04 5.48 5.88 6.20
73 6.97 6.86 6.50 5.94 6.10 73 4.74 5.19 5.66 6.09 6.43
74 7.26 7.12 6.69 6.04 6.28 74 4.86 5.34 5.85 6.32 6.68
75 7.56 7.39 6.89 6.14 6.48 75 4.99 5.51 6.06 6.56 6.96
76 7.90 7.69 7.09 6.24 6.68 76 5.13 5.69 6.28 6.82 7.25
77 8.26 8.01 7.29 6.33 6.90 77 5.28 5.88 6.52 7.11 7.56
78 8.65 8.34 7.49 6.41 7.13 78 5.43 6.09 6.78 7.42 7.90
79 9.07 8.69 7.69 6.48 7.38 79 5.61 6.32 7.07 7.75 8.27
80 9.53 9.07 7.89 6.55 7.64 80 5.79 6.56 7.38 8.11 8.67
81 10.03 9.46 8.08 6.61 7.91 81 5.99 6.82 7.71 8.50 9.09
82 10.57 9.87 8.26 6.66 8.21 82 6.20 7.11 8.07 8.92 9.55
83 11.16 10.30 8.43 6.70 8.51 83 6.43 7.42 8.45 9.37 10.04
84 11.79 10.74 8.59 6.74 8.83 84 6.68 7.75 8.87 9.86 10.57
85 12.48 11.19 8.74 6.77 9.18 85 6.96 8.11 9.32 10.38 11.14
* Adjusted age of annuitant
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3%
annual effective interest rate. Settlement rates for any age are not shown above, or any
combination of ages not shown above, will be calculated on the same basis as those rates
shown in the table above. Such rates will be furnished by us upon request. Amounts shown in
the Table below are based on assuming a 3% annual effective interest rate.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
/TABLE
<PAGE>
PAGE 29
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
of New York
Box 5144
Albany, New York 12205<PAGE>
<PAGE>
PAGE 1
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, New York 12205
American Express
IDS Life of
New York
DEFERRED ANNUITY CONTRACT
o Flexible purchase payments.
o Optional fixed dollar or variable accumulation values and annuity
payments.
o Annuity payments to begin on the retirement date.
o This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9900-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company of
New York, a Stock Company. PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company of New York in
Albany, New York, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract and refund all premiums which you
have paid. This contract will then be considered void from its
start.
President
/s/ Richard W. Kling
Secretary
/s/ Donna M. Gaglione<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based on incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary
Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments
Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 11
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 13
Table of Settlement Rates Tables showing the amount of first
variable annuity payment and fixed
annuity payments for the various
payment plans/Page 14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9900-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Portfolio Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable
subaccounts as shown below. You may change the amount, frequency
and allocations as provided in this contract. Refer to the
purchase payments provisions on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payments
Subaccounts Mutual Fund Allocation Percentage
GC IDS Life Capital Resource Fund 10%
GS IDS Life Special Income Fund 5%
GM IDS Life Moneyshare Fund 5%
GD IDS Life Managed Fund 5%
GI IDS Life International Equity Fund 5%
GA IDS Life Aggressive Growth Fund 10%
GE IDS Life Portfolio Equity Income Fund 10%
GG IDS Life Global Yield Fund 10%
GY IDS Life Government Yield Fund 10%
PG Putnam Growth & Income 5%
OH Oppenheimer High Income 5%
AV AIM Value Fund 5%
TD Templeton Developing Market Fund 5%
RO T. Rowe Price OTC Fund 5%
Fixed Account 5%
Schedule of Surrender Charges
Surrender
Charge Applied to
Contract Year Purchase
Payments Surrendered
1 Through 3 7%
4 6%
5 5%
6 4%
7 3%
8 2%
Thereafter 0%<PAGE>
PAGE 4
CONTRACT DATA (continued)
Contract Administrative Charge: $30 annually. Charge is waived if
contract value, or purchase
payments less purchase payments
surrendered, equals or exceeds
$25,000. See Page 8.
Maximum Purchase Payments Permitted:
1st contract year: $1,000,000
Each contract year
thereafter: $ 100,000
In order for the dollar amount of variable annuity payments not to
decrease, the assets of the variable accounts must have an annual
net rate of investment return of 5%. This is equal to a 6% gross
investment return minus the 1% risk charge.
Annuitant: John Doe
Contract Number: 9910-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $30 annual contract administrative charge (waived when
purchase payments less surrenders equals or exceeds $25,000). If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE><CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $ 1,189.41 $ 1,105.41 11 $15,233.75 $15,233.75
2 2,414.51 2,246.51 12 16,880.17 16,880.17
3 3,676.35 3,424.35 13 18,575.99 18,575.99
4 4,976.06 4,688.06 14 20,322.68 20,322.68
5 6,314.75 6,014.75 15 22,121.77 22,121.77
6 7,693.60 7,405.60 16 23,974.84 23,974.84
7 9,113.82 8,861.82 17 25,913.49 25,913.49
8 10,576.65 10,384.65 18 27,910.31 27,910.31
9 12,083.36 12,083.36 19 29,967.03 29,967.03
10 13,635.27 13,635.27 20 32,085.45 32,085.45
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.<PAGE>
PAGE 5
CONTRACT DATA (continued)
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
rate of 4.65% compounded annually. If a new rate is declared, it
will apply to amounts paid or allocated to the fixed account after
the new rate is effective.
Annuitant: John Doe
Contract Number: 9910-1234567
Paid-Up Fixed Dollar Annuity Table
The table below shows the guaranteed monthly fixed dollar annuity
payment (based on annuity payment Plan B of 10 years certain and
life) if monthly purchase payments are paid for the number of years
indicated and then left to accumulate to the assumed retirement
date.* The amounts shown are based on the following assumptions:
(1) $100 monthly purchase payments are received by the company at
the beginning of each contract month and allocated to the fixed
account; and (2) there have been no surrenders or premium tax
charges. Otherwise, the amounts below will be adjusted in
accordance with the provisions of this contract.
* Assumed retirement date is equal to the later of: (1)
the annuitant's age 65 contract anniversary; or (2) the
10th contract anniversary; but in no event later than
the annuitant's age 75 contract anniversary.
<TABLE><CAPTION>
Monthly Fixed Monthly Fixed
Number of Dollar Annuity Number of Dollar Annuity
Years Purchase Payment at Assumed Years Purchase Payment at Assumed
Payments Made Retirement Date Payments Made Retirement Date
<C> <C> <C> <C>
1 $ 6.97 11 $125.57
2 20.42 12 135.89
3 33.47 13 145.95
4 46.15 14 155.74
5 58.46 15 165.28
6 70.40 16 174.58
7 82.00 17 183.42
8 93.27 18 191.80
9 104.20 19 199.94
10 114.81 20 207.84
25 244.01
30 275.22
</TABLE>
If purchase payments are paid to the assumed retirement date, the
guaranteed fixed account contract value at such date will be
$57,099.36 and the guaranteed monthly fixed dollar annuity payment
will be $275.22.
<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract. The owner may be someone other than
the annuitant. The owner may be changed as provided in this
contract.
we, our, us
IDS Life Insurance Company of New York.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable
subaccounts on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the Fixed Account Contract Value (which receives a
declared interest rate) and the Variable Account Contract Value
(which varies with the investment performance of the elected
subaccounts) for this contract.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 7
DEFINITIONS (continued)
settlement
The application of the contract value of this contract to an
Annuity Payment Plan to provide annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable subaccounts
The portfolios of the Variable Account. The subaccounts available
on the contract date are named under Contract Data.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable subaccounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 8
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will
immediately be paid in a single sum with an interest credit of 6%
per annum. Any overpayments made by us will be subtracted from the
future payments together with an interest charge of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Federal Laws
This contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax
qualification, despite any other provisions to the contrary. We
reserve the right to amend this contract to reflect any
clarifications that may be needed or are appropriate to maintain
such qualification or to conform the contract to any applicable
changes in the tax qualification requirements. We will send you a
copy of any such amendments.
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.<PAGE>
PAGE 9
GENERAL PROVISIONS (continued)
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
Payments By Us
All sums payable by us are payable from our home office. Any
payment of a variable annuity or surrender based on the variable
contract value shall be payable only from the variable subaccounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
<PAGE>
PAGE 10
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living and unless otherwise provided in
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us.
Change of Ownership
You can change the ownership of this contract by written request on
a form approved by us. The change must be made while the annuitant
is living. Once the change is received by us, it will take effect
as of the date of your request, subject to any action taken or
payment made by us before the receipt.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Unless you have provided otherwise, only those beneficiaries who
are living on the date of death may share in the benefits, if any.
If no beneficiary is then living, we will pay the benefits to you,
if living, otherwise to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
Assignment
While the annuitant is living, you can assign this contract or any
interest in it. Your interest and the interest of any beneficiary
is subject to the interest of the assignee. An assignment is not a
change of ownership and an assignee is not an owner as these terms
are used in this contract. Any amounts payable to the assignee
will be paid in a single sum.
A copy of any assignment must be submitted to us at our home
office. Any assignment is subject to any action taken or payment
made by us before the assignment was recorded at our home office.
We are not responsible for the validity of any assignment.
<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant or owner dies before the retirement date and the
annuitant's age 75, while this contract is in force we will pay to
the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered since that
anniversary; or
3. the purchase payments paid less any amounts surrendered.
If the annuitant or owner dies before the retirement date and on or
after the annuitant's 75th birthday, while this contract is in
force, we will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered since that
anniversary.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant or owner whichever first
occurs. The beneficiary may elect to receive payment anytime
within 5 years after the date of death.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY (continued)
Spouse Option to Continue Contract Upon Owner's Death
If the owner's death occurs prior to the retirement date, the
owner's spouse, if designated as sole beneficiary, may elect in
writing to forego receipt of the death benefit and instead continue
this contract in force as owner and annuitant, if applicable. The
election by the spouse must be made within 60 days after we receive
due proof of death.
Death Benefit After the Retirement Date
If the annuitant or owner dies after the retirement date, the
amount payable, if any, will be as provided in the Annuity Payment
Plan then in effect.
<PAGE>
PAGE 13
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data.
Minimum Purchase Payments - The minimum purchase payment is $50 per
month which on an annualized basis equals $600.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
<PAGE>
PAGE 14
PURCHASE PAYMENTS (continued)
of the contract date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 15
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed Account
Contract Value; and (2) the Variable Account Contract Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable subaccounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable accounts that you specify. Otherwise, the number of units
from the variable subaccounts and the amount from the fixed account
will be deducted in the same proportion that your interest in each
bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $30 per year and is deducted from the
contract value at the end of each contract year or, if earlier,
when the contract is fully surrendered. We waive the charge if
your contract value, or your total purchase payments less any
purchase payments surrendered, equals or exceeds $25,000. The
charge does not apply after settlement of this contract under an
annuity payment plan.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 16
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable subaccounts to another one
or more of the variable subaccounts. Subject to item
2, you may also transfer values held in one or more of
the variable subaccounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable subaccounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
subaccount to the fixed account may be made until the
next contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. The minimum
automated transfer is $50.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable subaccounts; and
(2) those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Contract
Data. We have allocated a part of our assets for this contract to
the variable accounts. Such assets remain our property. However,
they may not be charged with the liabilities from any other
business in which we may take part.
Investments of the Variable Accounts
Purchase payments applied to the variable subaccounts will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that
subaccount under Contract Data or as later added or changed.
We may change the mutual funds from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Contract Data. We may also add additional subaccounts investing in
other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this contract is delivered.
Valuation of Assets
Mutual fund shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payments and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this contract. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
The amount of any Contract Administrative Charge, or other
applicable charges or partial surrenders from the variable account
contract value will reduce the number of units credited to the
contract in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the contract
in that subaccount while a transfer into a subaccount will increase
the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable
subaccount for the last prior valuation period is
multiplied by the net investment factor for the same
account for the next following valuation period. The
result is the accumulation unit value. The value of an
accumulation unit may increase or decrease from one
valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable subaccount determined at the
end of the current valuation period; plus
b. the per share amount of any dividend or capital
gain distributions made by the mutual fund held in
the variable subaccount, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable subaccount, determined at the end
of the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
<PAGE>
PAGE 19
FIXED AND VARIABLE ACCOUNTS (continued)
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an Annuity Unit for each variable subaccount was
arbitrarily set at $1 when the first mutual funds were bought. The
value of any later valuation period is found as follows:
1. The annuity unit value for each variable subaccount for
the last prior valuation period is multiplied by the
net investment factor for the subaccount for the
valuation period for which the annuity unit value is
being calculated.
2. The result is multiplied by an interest factor. This
is done to neutralize the assumed investment rate which
is built into the annuity tables on page 15.
<PAGE>
PAGE 20
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
A surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
A surrender charge may apply during the first eight contract years.
To determine the charge during this period for a partial or total
surrender we first divide the contract value into two parts.
1. Contract Earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Purchase Payments - These are the total purchase payments we
received that have not been previously surrendered.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first.
There is no surrender charge on contract earnings.
2. Next, if necessary, we surrender purchase payments not
previously surrendered.
The surrender charge shown under Contract Data applies to purchase
payments surrendered.
Determining Contract Earnings
Contract earnings are determined by looking at the entire contract
value, not just the earnings of a certain variable subaccount or
the fixed account.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
For example, the gains you may have in a certain variable
subaccount or interest earned in the fixed account may be offset by
losses in another variable subaccount. This may result in not
having any contract earnings available at the time of surrender.
At the time of a surrender, we will surrender any amounts
representing contract earnings first in order to minimize any
applicable surrender charge.
Waiver of Surrender Charges
There are no surrender charges for:
1. Death benefit payments; or
2. Contracts settled under an Annuity Payment Plan; or
3. Amounts surrendered to meet applicable minimum distribution
requirements under the Internal Revenue Code of 1986, as
amended, its regulations and/or promulgations of the Internal
Revenue Service. Amounts surrendered under this waiver
provision are limited to one time per year unless we agree
otherwise.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $250 or the entire contract value, if
less. The contract value after a partial surrender
must be at least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of our receipt of your
written surrender request and the return of this
contract, if required. For surrenders from the fixed
account, we have the right to defer payment to you for
up to 6 months from the date we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable subaccounts
and fixed account in the same proportion as your
interest in each bears to the contract value.<PAGE>
PAGE 22
SURRENDER PROVISIONS (continued)
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable subaccounts
is not reasonably practicable; or (b) it is not
reasonably practicable to fairly determine the value of
the net assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
<PAGE>
PAGE 23
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides for the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. However, the retirement date
may not be later than the later of: (1) the annuitant's 85th
birthday; or (2) the tenth contract anniversary. Also, if you
select a new date, it must be at least 30 days after we receive
your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed dollar basis, a variable basis, or a combination of
both. You can schedule receipt of annuity payments according to
one of the Plans A through E below or another plan agreed to by us.
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installments for a specified period) This
provides monthly annuity payments for a period of
years. The period of years may be no less than 10 nor
more than 30.
<PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If you select a Plan that has payment amount that is the same as
another Plan having a longer guarantee period, then the Plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Allocation of Contract Values at Settlement
At the time of settlement under an Annuity Payment Plan you may
reallocate your contract value to the Fixed Account to provide
fixed dollar payments and/or among the variable subaccounts to
provide variable annuity payments. Unless we agree otherwise, you
may use a maximum of five variable subaccounts at any one time
during settlement.
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the fixed account contract value will be applied to the
applicable Annuity Table. This will be done in accordance with the
Payment Plan chosen. The amount payable for each $1,000 so applied
is shown in Table B on page 16.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable subaccounts.
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the seventh calendar day before
the retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 15.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first vary in amount. The
amount changes with the investment performance of the variable
subaccounts. The dollar amount of variable annuity payments after<PAGE>
PAGE 25
ANNUITY PROVISIONS (continued)
the first is not fixed. It may change from month to month. The
dollar amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the 7th calendar
day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first. This number
of annuity units remains fixed during the annuity
payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the 7th calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
Exchange of Annuity Units
After annuity payments begin, annuity units of any variable
subaccount may be exchanged for units of any of the other variable
subaccounts. This may be done no more than once a year. Unless we
agree otherwise you may use a maximum of five variable subaccounts
at any one time. Once annuity payments start no exchanges may be
made to or from any fixed annuity.
<PAGE>
PAGE 26
TABLE OF SETTLEMENT RATES
<TABLE><CAPTION>
Table A below shows the amount of the first monthly variable annuity payment, based on a 5%
assumed investment return, for each $1,000 of value applied over any Payment Plan. The
amount of the first and all subsequent monthly fixed dollar annuity payments for each $1,000
of value applied under any Payment Plan will be based on our fixed dollar Table of Settlement
Rates in effect on the settlement date. Such rates are guaranteed to be not less than those
shown in Table B. The amount of such annuity payments under Plans A, B, and C will depend
upon the sex and adjusted age of the annuitant on the date of settlement. The amount of such
annuity payments under Plan D will depend upon the sex and the adjusted age of the annuitant
and joint annuitant on the date of settlement. Adjusted age shall be equal to the age
nearest birthday minus an "adjustment" depending on the calendar year of birth of the
annuitant as follows:
Calendar Year of Calendar Year of
Annuitant's Birth Adjustment Annuitant's Birth Adjustment
<C> <C> <C> <C>
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Female Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 5 5 10
Age* Income Certain Certain Certain Refund Male Years Years Same Years Years
M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 5.89 5.44 5.86 5.43 5.79 5.40 5.67 5.34 5.68 5.33 55 4.73 4.88 5.04 5.21 5.38
60 6.46 5.89 6.42 5.87 6.28 5.80 6.07 5.69 6.13 5.70 60 4.94 5.15 5.37 5.61 5.83
65 7.27 6.51 7.18 6.47 6.91 6.34 6.52 6.14 6.74 6.21 65 5.23 5.52 5.83 6.17 6.49
66 7.47 6.66 7.36 6.61 7.06 6.47 6.62 6.24 6.88 6.33 66 5.30 5.61 5.95 6.30 6.65
67 7.68 6.82 7.56 6.77 7.21 6.60 6.71 6.34 7.04 6.46 67 5.38 5.70 6.07 6.45 6.82
68 7.91 7.00 7.76 6.93 7.36 6.74 6.81 6.44 7.19 6.60 68 5.46 5.80 6.20 6.61 7.01
69 8.15 7.19 7.98 7.11 7.52 6.89 6.90 6.54 7.36 6.74 69 5.54 5.92 6.34 6.79 7.21
70 8.41 7.39 8.21 7.31 7.68 7.04 6.98 6.65 7.54 6.90 70 5.63 6.03 6.49 6.97 7.42
71 8.69 7.62 8.46 7.51 7.84 7.21 7.07 6.75 7.73 7.06 71 5.73 6.16 6.65 7.17 7.66
72 8.99 7.86 8.71 7.74 8.01 7.38 7.15 6.86 7.92 7.24 72 5.84 6.30 6.83 7.39 7.90
73 9.31 8.12 8.98 7.98 8.18 7.56 7.23 6.96 8.13 7.42 73 5.95 6.44 7.02 7.62 8.17
74 9.65 8.41 9.27 8.23 8.35 7.74 7.30 7.06 8.35 7.63 74 6.07 6.60 7.22 7.87 8.46
75 10.02 8.72 9.57 8.51 8.52 7.93 7.37 7.15 8.58 7.84 75 6.19 6.77 7.44 8.14 8.77
76 10.41 9.05 9.88 8.80 8.68 8.12 7.43 7.24 8.83 8.06 76 6.33 6.96 7.68 8.43 9.10
77 10.84 9.42 10.21 9.11 8.85 8.31 7.49 7.32 9.08 8.31 77 6.48 7.15 7.94 8.75 9.45
78 11.29 9.81 10.55 9.44 9.00 8.51 7.54 7.40 9.36 8.56 78 6.64 7.37 8.22 9.08 9.83
79 11.78 10.24 10.90 9.80 9.16 8.70 7.59 7.46 9.64 8.83 79 6.81 7.60 8.52 9.45 10.24
80 12.29 10.71 11.27 10.17 9.30 8.88 7.63 7.52 9.93 9.13 80 6.99 7.85 8.84 9.83 10.67
81 12.85 11.22 11.64 10.55 9.44 9.06 7.66 7.58 10.25 9.43 81 7.19 8.12 9.19 10.25 11.12
82 13.44 11.76 12.01 10.96 9.57 9.23 7.69 7.62 10.58 9.76 82 7.41 8.42 9.56 10.69 11.61
83 14.06 12.36 12.40 11.38 9.69 9.40 7.72 7.66 10.92 10.10 83 7.64 8.73 9.97 11.17 12.12
84 14.73 13.00 12.78 11.81 9.80 9.55 7.74 7.69 11.27 10.47 84 7.89 9.07 10.40 11.67 12.66
85 15.42 13.70 13.16 12.25 9.90 9.68 7.76 7.72 11.65 10.85 85 8.17 9.44 10.86 12.20 13.24
* Adjusted age of annuitant. M=Male F=Female
Table A above is based on the "1983 Individual Mortality Table A." Settlement rates for any age, or any combination of age
and sex not shown above, will be calculated on the same basis as those rates shown in the table above. Such rates will be
furnished by us upon request.
PLAN E Dollar Amount of Each Monthly Variable Dollar Annuity Payment Per $1,000 Applied (based on 5% AIR)
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $10.51 17 $ 7.20 24 $ 5.88
11 9.77 18 6.94 25 5.76
12 9.16 19 6.71 26 5.65
13 8.64 20 6.51 27 5.54
14 8.20 21 6.33 28 5.45
15 7.82 22 6.17 29 5.36
16 7.49 23 6.02 30 5.28<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES (Continued)
Fixed dollar annuity payments will not be less than those shown in Table B. In addition, the amount of such payments will
not be less than that which would be provided if a single premium immediate annuity contract then offered by us to
annuitant's in the same class were to be purchased with the greater of: (1) the surrender value of this contract; or (2) 95%
of the contract value of this contract.
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Female Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 5 5 10
Age* Income Certain Certain Certain Refund Male Years Years Same Years Years
M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
66 6.29 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.56 5.08 66 4.15 4.48 4.84 5.21 5.55
67 6.50 5.67 6.41 5.63 6.11 5.50 5.66 5.26 5.70 5.20 67 4.23 4.58 4.97 5.36 5.73
68 6.73 5.85 6.62 5.80 6.28 5.65 5.76 5.37 5.85 5.33 68 4.31 4.69 5.10 5.53 5.92
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 6.00 5.47 69 4.40 4.80 5.25 5.70 6.12
70 7.23 6.25 7.07 6.18 6.61 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
71 7.51 6.47 7.32 6.39 6.78 6.14 6.05 5.71 6.33 5.76 71 4.60 5.06 5.57 6.10 6.57
72 7.80 6.71 7.58 6.62 6.96 6.31 6.14 5.83 6.51 5.93 72 4.71 5.20 5.75 6.31 6.82
73 8.12 6.97 7.85 6.86 7.14 6.50 6.23 5.94 6.70 6.10 73 4.83 5.35 5.94 6.55 7.09
74 8.45 7.26 8.14 7.12 7.32 6.69 6.31 6.04 6.90 6.28 74 4.95 5.51 6.15 6.80 7.37
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 6.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
76 9.21 7.90 8.76 7.69 7.67 7.09 6.48 6.24 7.33 6.68 76 5.22 5.87 6.61 7.36 8.01
77 9.62 8.26 9.09 8.01 7.84 7.29 6.51 6.33 7.56 6.90 77 5.37 6.07 6.87 7.67 8.36
78 10.07 8.65 9.44 8.34 8.01 7.49 6.57 6.41 7.80 7.13 78 5.54 6.29 7.15 8.01 8.74
79 10.55 9.07 9.80 8.69 8.17 7.69 6.62 6.48 8.05 7.38 79 5.71 6.52 7.45 8.37 9.14
80 11.06 9.53 10.17 9.07 8.33 7.89 6.66 6.55 8.32 7.64 80 5.90 6.78 7.77 8.76 9.57
81 11.61 10.03 10.55 9.46 8.48 8.08 6.70 6.61 8.60 7.91 81 6.10 7.05 8.12 9.17 10.02
82 12.19 10.57 10.94 9.87 8.61 8.26 6.73 6.66 8.89 8.21 82 6.32 7.34 8.49 9.61 10.51
83 12.81 11.16 11.33 10.30 8.74 8.43 6.76 6.70 9.20 8.51 83 6.55 7.65 8.90 10.08 11.02
84 13.46 11.79 11.72 10.74 8.86 8.59 6.79 6.74 9.52 8.83 84 6.80 7.99 9.33 10.58 11.56
85 14.16 12.48 12.12 11.19 8.97 8.74 6.81 6.77 9.85 9.18 85 7.07 8.36 9.78 11.11 12.13
* Adjusted age of annuitant. M=Male F=Female
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as
those rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the Table below
are based on assuming a 3% annual effective interest rate.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
</TABLE> <PAGE>
PAGE 28
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
of New York
Box 5144
Albany, New York 12205
<PAGE>
<PAGE>
PAGE 1
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9910-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company of
New York, a Stock Company. PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company of New York, in
Albany, New York, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract and refund all premiums which you
have paid. This contract will then be considered void from its
start.
President
/s/ Richard W. Kling
Secretary
/s/ Donna M. Gaglione
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based on incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary
/Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments
/Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 10
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 12
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9910-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Portfolio Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable
subaccounts as shown below. You may change the amount, frequency
and allocations as provided in this contract. Refer to the
purchase payments provision on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payment
SubAccounts Mutual Fund Allocation Percentage
GC IDS Life Capital Resource Fund 10%
GS IDS Life Special Income Fund 5%
GM IDS Life Moneyshare Fund 5%
GD IDS Life Managed Fund 5%
GI IDS Life International Equity Fund 5%
GA IDS Life Aggressive Growth Fund 10%
GE IDS Life Portfolio Equity Income Fund 10%
GG IDS Life Global Yield Fund 10%
GY IDS Life Government Yield Fund 10%
PG Putnam Growth & Income 5%
OH Oppenheimer High Income 5%
AV AIM Value Fund 5%
TD Templeton Developing Market Fund 5%
RO T. Rowe Price OTC Fund 5%
Fixed Account 5%
Schedule of Surrender Charges
Surrender Charge Applied to
Contract Year Purchase Payments Surrendered
1 Through 3 7%
4 6%
5 5%
6 4%
7 3%
8 2%
Thereafter 0%<PAGE>
PAGE 4
CONTRACT DATA (continued)
Contract Administrative Charge: $30 annually. Charge is waived if
contract value, or purchase
payments less purchase payments
surrendered, equals or exceeds
$25,000. See Page 8.
Maximum Purchase Payments Permitted are limited by the Internal
Revenue Code as specified in Page 7 but may not in any event exceed
the following:
1st contract year: $1,000,000
Each contract year thereafter: $100,000
In order for the dollar amount of variable annuity payments not to
decrease, the assets of the variable accounts must have an annual
net rate of investment return of 5%. This is equal to a 6% gross
investment return minus the 1% risk charge.
Annuitant: John Doe Contract Number: 9910-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $30 annual contract administrative charge (waived when
purchase payments less surrenders equals or exceeds $25,000). If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE><CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $1,189.41 $1,105.41 11 $15,233.75 $15,233.75
2 2,414.51 2,246.51 12 16,880.17 16,880.17
3 3,676.35 3,424.35 13 18,575.99 18,575.99
4 4,976.06 4,688.06 14 20,322.68 20,322.68
5 6,314.75 6,014.75 15 22,121.77 22,121.77
6 7,693.60 7,405.60 16 23,974.84 23,974.84
7 9,113.82 8,861.82 17 25,913.49 25,913.49
8 10,576.65 10,384.65 18 27,910.31 27,910.31
9 12,083.36 12,083.36 19 29,967.03 29,967.03
10 13,635.27 13,635.27 20 32,085.45 32,085.45
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.
<PAGE>
PAGE 5
CONTRACT DATA (continued)
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
rate of 4.65% compounded annually. If a new rate is declared, it
will apply to amounts paid or allocated to the fixed account after
the new rate is effective.
Annuitant: John Doe Contract Number: 9910-1234567
Paid-Up Fixed Dollar Annuity Table
The table below shows the guaranteed monthly fixed dollar annuity
payment (based on annuity payment Plan B of 10 years certain and
life) if monthly purchase payments are paid for the number of years
indicated and then left to accumulate to the assumed retirement
date.* The amounts shown are based on the following assumptions:
(1) $100 monthly purchase payments are received by the company at
the beginning of each contract month and allocated to the fixed
account; and (2) there have been no surrenders or premium tax
charges. Otherwise, the amounts below will be adjusted in
accordance with the provisions of this contract.
* Assumed retirement date is equal to the later of: (1) the
annuitant's age 65 contract anniversary; or (2) the 10th contract
anniversary; but in no event later than the annuitant's age 75
contract anniversary.
<TABLE><CAPTION>
Monthly Fixed Monthly Fixed
Number of Dollar Annuity Number of Dollar Annuity
Years Purchase Payment at Assumed Years Purchase Payment at Assumed
Payments Made Retirement Date Payments made Retirement Date
<C> <C> <C> <C>
1 $ 6.97 11 $125.57
2 20.42 12 135.89
3 33.47 13 145.95
4 46.15 14 155.74
5 58.46 15 165.28
6 70.40 16 174.58
7 82.00 17 183.42
8 93.27 18 191.80
9 104.20 19 199.94
10 114.81 20 207.84
25 244.01
30 275.22
</TABLE>
If purchase payments are paid to the assumed retirement date, the
guaranteed fixed account contract value at such date will be
$57,099.36 and the guaranteed monthly fixed dollar annuity payment
will be $275.22.<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract. You are also the annuitant.
we, our, us
IDS Life Insurance Company of New York.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable
subaccounts on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the Fixed Account Contract Value (which receives a
declared interest rate) and the Variable Account Contract Value
(which varies with the investment performance of the elected
subaccounts) for this contract.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 7
DEFINITIONS (continued)
settlement
The application of the contract value of this contract to an
Annuity Payment Plan to provide annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable subaccounts
The portfolios of the Variable Account. The subaccounts available
on the contract date are named under Contract Data.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable subaccounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 8
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
This contract is intended to qualify as an Individual Retirement
Annuity (IRA). We agree to and reserve the right to modify this
contract to the extent necessary to qualify this contract as an
Individual Retirement Annuity as described in Sections 408(b) and
219 of the Internal Revenue Code of 1986, as amended and all
related sections and regulations which are in effect during the
term of the contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will
immediately be paid in a single sum with an interest credit of 6%
per annum. Any overpayments made by us will be subtracted from the
future payments together with an interest charge of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Federal Laws
This contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax
qualification, despite any other provisions to the contrary. We
reserve the right to amend this contract to reflect any
clarifications that may be needed or are appropriate to maintain
such qualification or to conform the contract to any applicable
changes in the tax qualification requirements. We will send you a
copy of any such amendments.
<PAGE>
PAGE 9
GENERAL PROVISIONS (continued)
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
Payments By Us
All sums payable by us are payable from our home office. Any
payment of a variable annuity or surrender based on the variable
contract value shall be payable only from the variable subaccounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
<PAGE>
PAGE 10
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living you may exercise all rights and
privileges provided in this contract or allowed by us. Your entire
interest is non-forfeitable.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for performance of
an obligation or for any other purpose to any person other than as
may be required or permitted under Section 408 of the Internal
Revenue Code of 1986, as amended. Your interest in this contract
may be transferred to your former spouse, if any, under a divorce
decree or a written instrument incident to such divorce.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Unless you have provided otherwise, only those beneficiaries who
are living on the date of death may share in the benefits, if any.
If no beneficiary is then living, we will pay the benefits to you,
if living, otherwise to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant dies before the retirement date and age 75, while
this contract is in force we will pay to the beneficiary the
greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered since that
anniversary; or
3. the purchase payments paid less any amounts
surrendered.
If the annuitant or owner dies before the retirement date and on or
after the annuitant's 75th birthday, while this contract is in
force, we will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered since that
anniversary.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant. The beneficiary may elect to
receive payment anytime within 5 years after the date of death of
the annuitant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death in the case of a non-spouse beneficiary; or
payments begin no later than December 31 in the year
the annuitant/owner would have attained age 70 1/2 in
the case of a spouse beneficiary; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY (continued)
Spouse Option to Continue Contract Upon Owner's Death
If the annuitant dies prior to the retirement date, a spouse who is
designated as sole beneficiary, may elect in writing to forego
receipt of the death benefit and instead continue this contract in
force. The election by the spouse must be made within 60 days
after we receive due proof of death.
In this event, the retirement date may not be later than the April
1 following the calendar year in which the annuitant would have
attained 70 1/2, or such other date which allows the spouse to
satisfy the minimum distribution requirements under the Internal
Revenue Code of 1986, as amended, its regulation and/or
promulgations by the Internal Revenue Service.
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 13
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
No annual purchase payments may be made with respect to the taxable
year in which the annuitant attains age 70-1/2 or any later year.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data.
Minimum Purchase Payments - The minimum purchase payment is $50 per
month which on a annualized basis equals $600.
In addition, except as otherwise provided in this paragraph, the
total purchase payments for any taxable year may not exceed $2,000,
or $2,250 in the event of a non-working spouse. In the case of a
rollover contribution described in Sections 402(a) (5), 402(a) (7),
403(a) (4), 403(b) (8) or, 408(d) (3), of the Internal Revenue Code
of 1986, as amended, there is no limit on the amount of your
purchase payment. All purchase payments must be made in cash. If
you die before your entire interest in this contract has been
distributed to you, and your beneficiary is other than your
surviving spouse, no additional purchase payments will be accepted
from your beneficiary under this contract.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of<PAGE>
PAGE 14
PURCHASE PAYMENTS (continued)
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
of the contract date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 15
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed Account
Contract Value; and (2) the Variable Account Contract Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable subaccounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable subaccounts that you specify. Otherwise, the number of
units from the variable subaccounts and the amount from the fixed
account will be deducted in the same proportion that your interest
in each bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $30 per year and is deducted from the
contract value at the end of each contract year or, if earlier,
when the contract is fully surrendered. We waive this charge if
your contract value, or your total purchase payments less any
purchase payments surrendered, equals or exceeds $25,000. The
charge does not apply after settlement of this contract under an
annuity payment plan.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 16
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable subaccounts to another one
or more of the variable subaccounts. Subject to item
2, you may also transfer values held in one or more of
the variable subaccounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable subaccounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
subaccount to the fixed account may be made until the
next contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. The minimum
automated transfer is $50.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable subaccounts; and
(2) those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Contract
Data. We have allocated a part of our assets for this contract to
the variable accounts. Such assets remain our property. However,
they may not be charged with the liabilities from any other
business in which we may take part.
Investments of the Variable Account
Purchase payments applied to the variable subaccounts will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that
subaccount under Contract Data or as later added or changed.
We may change the mutual funds from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Contract Data. We may also add additional subaccounts investing in
other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this contract is delivered.
Valuation of Assets
Mutual fund shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payments and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this contract. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
The amount of any Contract Administrative Charge, or other
applicable charges or partial surrenders from the variable account
contract value will reduce the number of units credited to the
contract in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the contract
in that subaccount while a transfer into a subaccount will increase
the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable
subaccounts for the last prior valuation period is
multiplied by the net investment factor for the same
account for the next following valuation period. The
result is the accumulation unit value. The value of an
accumulation unit may increase or decrease from one
valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable subaccount determined at the
end of the current valuation period; plus
b. the per share amount of any dividend or capital
gain distributions made by the mutual fund held in
the variable subaccount, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable subaccount, determined at the end
of the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
<PAGE>
PAGE 19
FIXED AND VARIABLE ACCOUNTS (continued)
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an Annuity Unit for each variable subaccount was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable subaccount for the
last prior valuation period is multiplied by the net
investment factor for the subaccount for the valuation period
for which the annuity unit value is being calculated.
2. The result is multiplied by an interest factor. This is done
to neutralize the assumed investment rate which is built into
the annuity tables on page 15 and 16.
<PAGE>
PAGE 20
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
A surrender charge may apply during the first eight contract years.
To determine the charge during this period for a partial or total
surrender we first divide the contract value into two parts.
1. Contract earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Purchase payments - These are the total purchase
payments we received that have not been previously
surrendered.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first. There is no
surrender charge on contract earnings.
2. Next, if necessary, we surrender purchase payments not
previously surrendered.
The surrender charge shown under Contract Data applies to purchase
payments surrendered.
Determining Contract Earnings
Contract earnings are determined by looking at the entire contract
value, not just the earnings of a certain variable subaccount or
the fixed account.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
For example, the gains you may have in a certain variable
subaccount or interest earned in the fixed account may be offset by
losses in another variable subaccount. This may result in not
having any contract earnings available at the time of surrender.
At the time of surrender, we will surrender any amounts
representing contract earnings first in order to minimize any
applicable surrender charge.
Waiver of Surrender Charges
There are no surrender charges for:
1. Death benefit payments; or
2. Contracts settled under an Annuity Payment Plan; or
3. Amounts surrendered to meet applicable minimum distribution
requirements under the Internal Revenue Code of 1986, as
amended, its regulations and/or promulgations of the Internal
Revenue Service. Surrenders under this waiver provision are
limited to one per year unless we agree otherwise.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. You must surrender an amount equal to at least $250.
The contract value after a partial surrender must be at
least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of the receipt of your
written surrender request and the return of this
contract, if required. For surrenders from the fixed
account, we have the right to defer payment to you for
up to 6 months from the date we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable subaccounts
and fixed account in the same proportion as your
interest in each bears to the contract value.
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
<PAGE>
PAGE 22
SURRENDER PROVISIONS (continued)
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable subaccounts
is not reasonably practicable; or (b) it is not
reasonably practicable to fairly determine the value of
the net assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Surrenders may be taxed
Surrenders are subject to tax and possibly penalty charges
according to the Internal Revenue Code.
<PAGE>
PAGE 23
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides for the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. The maximum Retirement Date is
the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfies the minimum
distribution requirements under the Internal Revenue
Code of 1986, as amended, its regulations and/or
promulgations by the Internal Revenue Service.
Also, if you select a new retirement date, it must be at least 30
days after we receive your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed dollar basis, a variable basis, or a combination of
both. You can schedule receipt of annuity payment according to one
of the Plans A through E below or another plan agreed to by us
provided;
1. the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a joint annuitant; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuitant, or the life expectancy of the annuitant and
a joint annuitant; and
3. the Plan selected meets the minimum death incidental
benefit requirements under the Internal Revenue Code of
1986, as amended. <PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installments for a specified period) This
provides monthly annuity payments for a period of
years. The period of years may be no less than 10 nor
more than 30.
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If you select a Plan that has a payment amount that is the same as
another Plan having a longer guarantee period, then the Plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Allocation of Contract Values at Settlement
At the time of settlement under an Annuity Payment Plan you may
reallocate your contract value to the Fixed Account to provide
fixed dollar payments and/or among the variable subaccounts to
provide variable annuity payments. Unless we agree otherwise, you
may use a maximum of five variable subaccounts at any one time
during settlement.
<PAGE>
PAGE 25
ANNUITY PROVISIONS (continued)
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the fixed account contract value will be applied to the
applicable Annuity Table. This will be done in accordance with the
Payment Plan chosen. The amount payable for each $1,000 so applied
is shown in Table B on page 16.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable subaccounts.
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the 7th calendar day before the
retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 15.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first vary in amount. The
amount changes with the investment performance of the variable
subaccounts. The dollar amount of variable annuity payments after
the first is not fixed. It may change from month to month. The
dollar amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the 7th calendar
day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first. This number
of annuity units remains fixed during the annuity
payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the 7th calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
<PAGE>
PAGE 26
ANNUITY PROVISIONS (continued)
Exchange of Annuity Units
After annuity payments begin, annuity units of any variable
subaccount may be exchanged for units of any of the other variable
subaccounts. This may be done no more than once a year. Unless we
agree otherwise you may use a maximum of five variable subaccounts
at any one time. Once annuity payments start no exchanges may be
made to or from any fixed annuity.<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES
<TABLE><CAPTION>
Table A below shows the amount of the first monthly variable annuity payment, based on a 5%
assumed investment return, for each $1,000 of value applied over any Payment Plan. The
amount of the first and all subsequent monthly fixed dollar annuity payments for each $1,000
of value applied under any Payment Plan will be based on our fixed dollar Table of Settlement
Rates in effect on the settlement date. Such rates are guaranteed to be not less than those
shown in Table B. The amount of such annuity payments under Plans A, B, and C will depend
upon the sex and adjusted age of the annuitant on the date of settlement. The amount of such
annuity payments under Plan D will depend upon the sex and the adjusted age of the annuitant
and joint annuitant on the date of settlement. Adjusted age shall be equal to the age
nearest birthday minus an "adjustment" depending on the calendar year of birth of the
annuitant as follows:
Calendar Year of Calendar Year of
Annuitant's Birth Adjustment Annuitant's Birth Adjustment
<C> <C> <C> <C>
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Female Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 5 5 10
Age* Income Certain Certain Certain Refund Male Years Years Same Years Years
M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 5.89 5.44 5.86 5.43 5.79 5.40 5.67 5.34 5.68 5.33 55 4.73 4.88 5.04 5.21 5.38
60 6.46 5.89 6.42 5.87 6.28 5.80 6.07 5.69 6.13 5.70 60 4.94 5.15 5.37 5.61 5.83
65 7.27 6.51 7.18 6.47 6.91 6.34 6.52 6.14 6.74 6.21 65 5.23 5.52 5.83 6.17 6.49
66 7.47 6.66 7.36 6.61 7.06 6.47 6.62 6.24 6.88 6.33 66 5.30 5.61 5.95 6.30 6.65
67 7.68 6.82 7.56 6.77 7.21 6.60 6.71 6.34 7.04 6.46 67 5.38 5.70 6.07 6.45 6.82
68 7.91 7.00 7.76 6.93 7.36 6.74 6.81 6.44 7.19 6.60 68 5.46 5.80 6.20 6.61 7.01
69 8.15 7.19 7.98 7.11 7.52 6.89 6.90 6.54 7.36 6.74 69 5.54 5.92 6.34 6.79 7.21
70 8.41 7.39 8.21 7.31 7.68 7.04 6.98 6.65 7.54 6.90 70 5.63 6.03 6.49 6.97 7.42
71 8.69 7.62 8.46 7.51 7.84 7.21 7.07 6.75 7.73 7.06 71 5.73 6.16 6.65 7.17 7.66
72 8.99 7.86 8.71 7.74 8.01 7.38 7.15 6.86 7.92 7.24 72 5.84 6.30 6.83 7.39 7.90
73 9.31 8.12 8.98 7.98 8.18 7.56 7.23 6.96 8.13 7.42 73 5.95 6.44 7.02 7.62 8.17
74 9.65 8.41 9.27 8.23 8.35 7.74 7.30 7.06 8.35 7.63 74 6.07 6.60 7.22 7.87 8.46
75 10.02 8.72 9.57 8.51 8.52 7.93 7.37 7.15 8.58 7.84 75 6.19 6.77 7.44 8.14 8.77
76 10.41 9.05 9.88 8.80 8.68 8.12 7.43 7.24 8.83 8.06 76 6.33 6.96 7.68 8.43 9.10
77 10.84 9.42 10.21 9.11 8.85 8.31 7.49 7.32 9.08 8.31 77 6.48 7.15 7.94 8.75 9.45
78 11.29 9.81 10.55 9.44 9.00 8.51 7.54 7.40 9.36 8.56 78 6.64 7.37 8.22 9.08 9.83
79 11.78 10.24 10.90 9.80 9.16 8.70 7.59 7.46 9.64 8.83 79 6.81 7.60 8.52 9.45 10.24
80 12.29 10.71 11.27 10.17 9.30 8.88 7.63 7.52 9.93 9.13 80 6.99 7.85 8.84 9.83 10.67
81 12.85 11.22 11.64 10.55 9.44 9.06 7.66 7.58 10.25 9.43 81 7.19 8.12 9.19 10.25 11.12
82 13.44 11.76 12.01 10.96 9.57 9.23 7.69 7.62 10.58 9.76 82 7.41 8.42 9.56 10.69 11.61
83 14.06 12.36 12.40 11.38 9.69 9.40 7.72 7.66 10.92 10.10 83 7.64 8.73 9.97 11.17 12.12
84 14.73 13.00 12.78 11.81 9.80 9.55 7.74 7.69 11.27 10.47 84 7.89 9.07 10.40 11.67 12.66
85 15.42 13.70 13.16 12.25 9.90 9.68 7.76 7.72 11.65 10.85 85 8.17 9.44 10.86 12.20 13.24
* Adjusted age of annuitant. M=Male F=Female
Table A above is based on the "1983 Individual Mortality Table A." Settlement rates for any age, or any combination of age
and sex not shown above, will be calculated on the same basis as those rates shown in the table above. Such rates will be
furnished by us upon request.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied (based on 5% AIR)
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $10.51 17 $ 7.20 24 $ 5.88
11 9.77 18 6.94 25 5.76
12 9.16 19 6.71 26 5.65
13 8.64 20 6.51 27 5.54
14 8.20 21 6.33 28 5.45
15 7.82 22 6.17 29 5.36
16 7.49 23 6.02 30 5.28<PAGE>
PAGE 28
TABLE OF SETTLEMENT RATES (Continued)
Fixed dollar annuity payments will not be less than those shown in Table B. In addition, the amount of such payments will
not be less than that which would be provided if a single premium immediate annuity contract then offered by us to
annuitant's in the same class were to be purchased with the greater of: (1) the surrender value of this contract; or (2) 95%
of the contract value of this contract.
TABLE B Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Female Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 5 5 10
Age* Income Certain Certain Certain Refund Male Years Years Same Years Years
M F M F M F M F M F Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 4.70 4.25 4.68 4.25 4.62 4.22 4.53 4.18 4.42 4.10 55 3.51 3.69 3.88 4.06 4.23
60 5.28 4.72 5.25 4.70 5.14 4.66 4.96 4.57 4.86 4.48 60 3.76 3.99 4.24 4.49 4.72
65 6.10 5.35 6.03 5.32 5.81 5.22 5.46 5.05 5.43 4.97 65 4.07 4.38 4.72 5.07 5.39
66 6.29 5.51 6.21 5.47 5.96 5.36 5.56 5.16 5.56 5.08 66 4.15 4.48 4.84 5.21 5.55
67 6.50 5.67 6.41 5.63 6.11 5.50 5.66 5.26 5.70 5.20 67 4.23 4.58 4.97 5.36 5.73
68 6.73 5.85 6.62 5.80 6.28 5.65 5.76 5.37 5.85 5.33 68 4.31 4.69 5.10 5.53 5.92
69 6.97 6.04 6.84 5.98 6.44 5.80 5.86 5.49 6.00 5.47 69 4.40 4.80 5.25 5.70 6.12
70 7.23 6.25 7.07 6.18 6.61 5.96 5.96 5.60 6.16 5.61 70 4.50 4.93 5.40 5.89 6.34
71 7.51 6.47 7.32 6.39 6.78 6.14 6.05 5.71 6.33 5.76 71 4.60 5.06 5.57 6.10 6.57
72 7.80 6.71 7.58 6.62 6.96 6.31 6.14 5.83 6.51 5.93 72 4.71 5.20 5.75 6.31 6.82
73 8.12 6.97 7.85 6.86 7.14 6.50 6.23 5.94 6.70 6.10 73 4.83 5.35 5.94 6.55 7.09
74 8.45 7.26 8.14 7.12 7.32 6.69 6.31 6.04 6.90 6.28 74 4.95 5.51 6.15 6.80 7.37
75 8.82 7.56 8.44 7.39 7.49 6.89 6.38 6.14 7.11 6.48 75 5.08 5.68 6.37 7.07 7.68
76 9.21 7.90 8.76 7.69 7.67 7.09 6.48 6.24 7.33 6.68 76 5.22 5.87 6.61 7.36 8.01
77 9.62 8.26 9.09 8.01 7.84 7.29 6.51 6.33 7.56 6.90 77 5.37 6.07 6.87 7.67 8.36
78 10.07 8.65 9.44 8.34 8.01 7.49 6.57 6.41 7.80 7.13 78 5.54 6.29 7.15 8.01 8.74
79 10.55 9.07 9.80 8.69 8.17 7.69 6.62 6.48 8.05 7.38 79 5.71 6.52 7.45 8.37 9.14
80 11.06 9.53 10.17 9.07 8.33 7.89 6.66 6.55 8.32 7.64 80 5.90 6.78 7.77 8.76 9.57
81 11.61 10.03 10.55 9.46 8.48 8.08 6.70 6.61 8.60 7.91 81 6.10 7.05 8.12 9.17 10.02
82 12.19 10.57 10.94 9.87 8.61 8.26 6.73 6.66 8.89 8.21 82 6.32 7.34 8.49 9.61 10.51
83 12.81 11.16 11.33 10.30 8.74 8.43 6.76 6.70 9.20 8.51 83 6.55 7.65 8.90 10.08 11.02
84 13.46 11.79 11.72 10.74 8.86 8.59 6.79 6.74 9.52 8.83 84 6.80 7.99 9.33 10.58 11.56
85 14.16 12.48 12.12 11.19 8.97 8.74 6.81 6.77 9.85 9.18 85 7.07 8.36 9.78 11.11 12.13
* Adjusted age of annuitant. M=Male F=Female
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3% annual effective interest rate.
Settlement rates for any age, or any combination of age and sex not shown above, will be calculated on the same basis as
those rates shown in the table above. Such rates will be furnished by us upon request. Amounts shown in the Table below
are based on assuming a 3% annual effective interest rate.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
/TABLE
<PAGE>
PAGE 29
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
of New York
Box 5144
Albany, New York 12205
<PAGE>
<PAGE>
PAGE 1
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
Annuitant: John Doe
Contract Number: 9910-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
This is a deferred annuity contract. It is a legal contract
between you, as the owner, and us, IDS Life Insurance Company of
New York, a Stock Company. PLEASE READ YOUR CONTRACT CAREFULLY.
If the annuitant is living on the Retirement Date, upon your
request, we will begin to pay you monthly annuity payments. Any
payments made by us are subject to the terms of this contract.
We issue this contract in consideration of your application and the
payment of the purchase payments.
Signed for and issued by IDS Life Insurance Company of New York, in
Albany, New York, as of the contract date shown above.
ACCUMULATION VALUES AND ANNUITY PAYMENTS, WHEN BASED ON THE
INVESTMENT RESULTS OF THE SEPARATE ACCOUNTS, ARE VARIABLE AND NOT
GUARANTEED AS TO FIXED DOLLAR AMOUNT.
NOTICE OF YOUR RIGHT TO EXAMINE THIS CONTRACT FOR 10 DAYS
If for any reason you are not satisfied with this contract, return
it to us or our representative within 10 days after you receive it.
We will then cancel this contract and refund all premiums which you
have paid. This contract will then be considered void from its
start.
President
/s/ Richard W. Kling
Secretary
/s/ Donna M. Gaglione
<PAGE>
PAGE 2
GUIDE TO CONTRACT PROVISIONS
Definitions Important words and meanings/Page 3
General Provisions Entire contract; Incontestability;
Benefits based on incorrect data;
State Laws; Reports to owner;
Evidence of survival; Protection of
proceeds; Payments by us; Voting
rights/Page 4
Ownership and Beneficiary Owner rights; Change of ownership;
Beneficiary; Change of Beneficiary
/Page 5
Payments to Beneficiary Describes options and amounts
payable upon death/Page 6
Purchase Payments Purchase payments amounts and
intervals; Payment limits;
Allocation of purchase payments
/Page 7
Contract Value Describes the fixed and variable
account contract values; Interest to
be credited; Contract administrative
charge; Premium taxes; Transfers of
contract values/Page 8
Fixed and Variable Accounts Describes the variable accounts,
accumulation units and values; Net
investment factor; Mortality and
expense risk charge; Annuity unit
value/Page 9
Surrender Provisions Surrender of the contract for its
surrender value; Rules for
surrender/Page 10
Annuity Provisions When annuity payments begin;
Different ways to receive annuity
payments; Determination of payment
amounts/Page 12
Table of Settlement Rates Tables showing the amount of the
first variable annuity payment and
fixed annuity payments for the
various payment plans/Page 14
<PAGE>
PAGE 3
CONTRACT DATA
Annuitant: John Doe
Contract Number: 9910-1234567
Contract Date: October 1, 1995
Retirement Date: October 1, 2015
Contract Owner: John Doe
Deferred Annuity Contract ("Flexible Portfolio Annuity")
Upon issuance of this contract your purchase payments have been
scheduled to be paid and applied to the fixed and variable
subaccounts as shown below. You may change the amount, frequency
and allocations as provided in this contract. Refer to the
purchase payments provision on Page 7.
Amount Submitted With Application: None
Scheduled Purchase Payment:
Annual Amount: $1,200
Variable Purchase Payment
SubAccounts Mutual Fund Allocation Percentage
GC IDS Life Capital Resource Fund 10%
GS IDS Life Special Income Fund 5%
GM IDS Life Moneyshare Fund 5%
GD IDS Life Managed Fund 5%
GI IDS Life International Equity Fund 5%
GA IDS Life Aggressive Growth Fund 10%
GE IDS Life Portfolio Equity Income Fund 10%
GG IDS Life Global Yield Fund 10%
GY IDS Life Government Yield Fund 10%
PG Putnam Growth & Income 5%
OH Oppenheimer High Income 5%
AV AIM Value Fund 5%
TD Templeton Developing Market Fund 5%
RO T. Rowe Price OTC Fund 5%
Fixed Account 5%
Schedule of Surrender Charges
Surrender Charge Applied to
Contract Year Purchase Payments Surrendered
1 Through 3 7%
4 6%
5 5%
6 4%
7 3%
8 2%
Thereafter 0%<PAGE>
PAGE 4
CONTRACT DATA (continued)
Contract Administrative Charge: $30 annually. Charge is waived if
contract value, or purchase
payments less purchase payments
surrendered, equals or exceeds
$25,000. See Page 8.
Maximum Purchase Payments Permitted are limited by the Internal
Revenue Code as specified in Page 7 but may not in any event exceed
the following:
1st contract year: $1,000,000
Each contract year thereafter: $100,000
In order for the dollar amount of variable annuity payments not to
decrease, the assets of the variable accounts must have an annual
net rate of investment return of 5%. This is equal to a 6% gross
investment return minus the 1% risk charge.
Annuitant: John Doe Contract Number: 9910-1234567
Fixed Account
Table of Guaranteed Minimum Contract and Surrender Values
Guaranteed Interest Rate: 3% Annual Effective Rate
The following table shows the guaranteed minimum fixed account
contract and surrender values based on these assumptions: (1) $100
purchase payments are received and allocated 100% to the fixed
account at the beginning of each month; (2) There have been no
surrenders; (3) There are no premium tax charges. This table
reflects the $30 annual contract administrative charge (waived when
purchase payments less surrenders equals or exceeds $25,000). If
purchase payments are otherwise paid or allocated or if there are
surrenders, or premium tax charges, the values below will be
adjusted in accordance with the provisions of this contract.
<TABLE><CAPTION>
Guaranteed Guaranteed Guaranteed Guaranteed
End of Minimum Minimum End of Minimum Minimum
Contract Fixed Account Fixed Account Contract Fixed Account Fixed Account
Year Contract Value Surrender Value Year Contract Value Surrender Value
<C> <C> <C> <C> <C> <C>
1 $1,189.41 $1,105.41 11 $15,233.75 $15,233.75
2 2,414.51 2,246.51 12 16,880.17 16,880.17
3 3,676.35 3,424.35 13 18,575.99 18,575.99
4 4,976.06 4,688.06 14 20,322.68 20,322.68
5 6,314.75 6,014.75 15 22,121.77 22,121.77
6 7,693.60 7,405.60 16 23,974.84 23,974.84
7 9,113.82 8,861.82 17 25,913.49 25,913.49
8 10,576.65 10,384.65 18 27,910.31 27,910.31
9 12,083.36 12,083.36 19 29,967.03 29,967.03
10 13,635.27 13,635.27 20 32,085.45 32,085.45
</TABLE>
Variable account contract and surrender values are not guaranteed.
Information concerning contract and surrender values will be
provided to you at any time upon written request.
<PAGE>
PAGE 5
CONTRACT DATA (continued)
As of the date this contract was issued, any amounts allocated to
the fixed account will earn interest, for the first year, at the
rate of 4.65% compounded annually. If a new rate is declared, it
will apply to amounts paid or allocated to the fixed account after
the new rate is effective.
Annuitant: John Doe Contract Number: 9910-1234567
Paid-Up Fixed Dollar Annuity Table
The table below shows the guaranteed monthly fixed dollar annuity
payment (based on annuity payment Plan B of 10 years certain and
life) if monthly purchase payments are paid for the number of years
indicated and then left to accumulate to the assumed retirement
date.* The amounts shown are based on the following assumptions:
(1) $100 monthly purchase payments are received by the company at
the beginning of each contract month and allocated to the fixed
account; and (2) there have been no surrenders or premium tax
charges. Otherwise, the amounts below will be adjusted in
accordance with the provisions of this contract.
* Assumed retirement date is equal to the later of: (1) the
annuitant's age 65 contract anniversary; or (2) the 10th contract
anniversary; but in no event later than the annuitant's age 75
contract anniversary.
<TABLE><CAPTION>
Monthly Fixed Monthly Fixed
Number of Dollar Annuity Number of Dollar Annuity
Years Purchase Payment at Assumed Years Purchase Payment at Assumed
Payments Made Retirement Date Payments made Retirement Date
<C> <C> <C> <C>
1 $ 6.97 11 $125.57
2 20.42 12 135.89
3 33.47 13 145.95
4 46.15 14 155.74
5 58.46 15 165.28
6 70.40 16 174.58
7 82.00 17 183.42
8 93.27 18 191.80
9 104.20 19 199.94
10 114.81 20 207.84
25 244.01
30 275.22
</TABLE>
If purchase payments are paid to the assumed retirement date, the
guaranteed fixed account contract value at such date will be
$57,099.36 and the guaranteed monthly fixed dollar annuity payment
will be $275.22.<PAGE>
PAGE 6
DEFINITIONS
The following words are used often in this contract. When we use
these words, this is what we mean:
annuitant
The person or persons on whose life monthly annuity payments
depend.
you, your
The owner of this contract. You are also the annuitant.
we, our, us
IDS Life Insurance Company of New York.
accumulation unit
An accumulation unit is an accounting unit of measure. It is used
to calculate the contract value prior to settlement.
annuity unit
An annuity unit is an accounting unit of measure. It is used to
calculate the value of annuity payments from the variable
subaccounts on and after the retirement date.
contract date
It is the date from which contract anniversaries, contract years,
and contract months are determined. Your contract date is shown
under Contract Data.
contract anniversary
The same day and month as the contract date each year that the
contract remains in force.
contract value
The sum of the Fixed Account Contract Value (which receives a
declared interest rate) and the Variable Account Contract Value
(which varies with the investment performance of the elected
subaccounts) for this contract.
retirement date
The date shown under Contract Data on which annuity payments are to
begin. This date may be changed as provided in this contract. You
will be notified prior to the retirement date in order to select an
appropriate annuity payment plan.
<PAGE>
PAGE 7
DEFINITIONS (continued)
settlement
The application of the contract value of this contract to an
Annuity Payment Plan to provide annuity payments.
valuation date
A valuation date is each day the New York Stock Exchange is open
for trading.
valuation period
A valuation period is the interval of time commencing at the close
of business on each valuation date and ending at the close of
business on the next valuation date.
fixed account
The fixed account is made up of all our assets other than those in
any separate account.
variable subaccounts
The portfolios of the Variable Account. The subaccounts available
on the contract date are named under Contract Data.
fixed annuity
A fixed annuity is an annuity with payments which are guaranteed by
us as to dollar amount during the annuity payment period.
variable annuity
A variable annuity is an annuity with payments which (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of one or more of the
variable subaccounts.
written request
A request in writing signed by you and delivered to us at our home
office.
<PAGE>
PAGE 8
GENERAL PROVISIONS
Entire Contract
This contract form is the entire contract between you and us.
No one except one of our corporate officers (President, Vice
President, Secretary or Assistant Secretary) can change or waive
any of our rights or requirements under this contract. That person
must do so in writing. None of our representatives or other
persons has the authority to change or waive any of our rights or
requirements under this contract.
This contract is intended to qualify as an Individual Retirement
Annuity (IRA). We agree to and reserve the right to modify this
contract to the extent necessary to qualify this contract as an
Individual Retirement Annuity as described in Sections 408(b) and
219 of the Internal Revenue Code of 1986, as amended and all
related sections and regulations which are in effect during the
term of the contract.
Incontestable
This contract is incontestable from its date of issue.
Benefits Based on Incorrect Data
If the amount of benefits is determined by data as to a person's
age or sex that is incorrect, benefits will be recalculated on the
basis of the correct data. Any underpayments made by us will
immediately be paid in a single sum with an interest credit of 6%
per annum. Any overpayments made by us will be subtracted from the
future payments together with an interest charge of 6% per annum.
State Laws
This contract is governed by the law of the state in which it is
delivered. The values and benefits of this contract are at least
equal to those required by such state.
Federal Laws
This contract is intended to qualify as an annuity contract for
Federal income tax purposes. To that end, the provisions of this
contract are to be interpreted to ensure or maintain such tax
qualification, despite any other provisions to the contrary. We
reserve the right to amend this contract to reflect any
clarifications that may be needed or are appropriate to maintain
such qualification or to conform the contract to any applicable
changes in the tax qualification requirements. We will send you a
copy of any such amendments.
<PAGE>
PAGE 9
GENERAL PROVISIONS (continued)
Reports to Owner
At least once a year we will send you a statement showing the
contract value and the cash surrender value of this contract. This
statement will be based on any laws or regulations that apply to
contracts of this type.
Evidence of Survival
Where any payments under this contract depend on the recipient or
annuitant being alive on a given date, proof that such condition
has been met may be required by us. Such proof may be required
prior to making the payments.
Protection of Proceeds
Payments under this contract are not assignable by any beneficiary
prior to the time they are due. To the extent allowed by law,
payments are not subject to the claims of creditors or to legal
process.
Payments By Us
All sums payable by us are payable from our home office. Any
payment of a variable annuity or surrender based on the variable
contract value shall be payable only from the variable subaccounts.
Voting Rights
So long as federal law requires, we will give certain voting rights
to contract owners. As contract owner, if you have voting rights
we will send a notice to you telling you the time and place of a
shareholder meeting. The notice will also explain matters to be
voted upon and how many votes you get.
<PAGE>
PAGE 10
OWNERSHIP AND BENEFICIARY
Owner's Rights
As long as the annuitant is living and unless otherwise provided by
this contract, you may exercise all rights and privileges provided
in this contract or allowed by us. Your entire interest is non-
forfeitable.
Change of Ownership (Restricted)
Your right to change the ownership of this contract is restricted.
This contract may not be sold, assigned, transferred, discounted or
pledged as collateral for a loan or as security for performance of
an obligation or for any other purpose to any person other than as
may be required or permitted under Section 408 of the Internal
Revenue Code of 1986, as amended. Your interest in this contract
may be transferred to your former spouse, if any, under a divorce
decree or a written instrument incident to such divorce.
Beneficiary
Beneficiaries are those you name, in a form satisfactory to us, to
receive benefits of this contract if you or the annuitant die while
this contract is in force.
Unless you have provided otherwise, only those beneficiaries who
are living on the date of death may share in the benefits, if any.
If no beneficiary is then living, we will pay the benefits to you,
if living, otherwise to your estate.
Change of Beneficiary
You may change the beneficiary anytime while the annuitant is
living by satisfactory written request to us. Once the change is
received by us, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the
receipt.
<PAGE>
PAGE 11
PAYMENTS TO BENEFICIARY
Death Benefit Before the Retirement Date
If the annuitant dies before the retirement date and age 75, while
this contract is in force we will pay to the beneficiary the
greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary less any amounts surrendered since that
anniversary; or
3. the purchase payments paid less any amounts
surrendered.
If the annuitant or owner dies before the retirement date and on or
after the annuitant's 75th birthday, while this contract is in
force, we will pay to the beneficiary the greater of:
1. the contract value; or
2. the contract value as of the most recent sixth contract
anniversary, less any amounts surrendered since that
anniversary.
The above amount will be payable in a lump sum upon the receipt of
due proof of death of the annuitant. The beneficiary may elect to
receive payment anytime within 5 years after the date of death of
the annuitant.
In lieu of a lump sum, payment may be made under an Annuity Payment
Plan, provided:
1. the beneficiary elects the plan within 60 days after we
receive due proof of death; and
2. payments begin no later than one year after the date of
death in the case of a non-spouse beneficiary; or
payments begin no later than December 31 in the year
the annuitant/owner would have attained age 70 1/2 in
the case of a spouse beneficiary; and
3. the plan provides payments over a period which does not
exceed the life of the beneficiary, or the life
expectancy of the beneficiary.
In this event, the reference to "annuitant" in the Annuity
Provisions shall apply to the beneficiary.
Any amounts payable or applied by us as described in this section
will be based on the contract value as of the valuation date on or
next following the date on which due proof of death is received at
our Home Office.
<PAGE>
PAGE 12
PAYMENTS TO BENEFICIARY (continued)
Spouse Option to Continue Contract Upon Owner's Death
If the annuitant dies prior to the retirement date, a spouse who is
designated as sole beneficiary, may elect in writing to forego
receipt of the death benefit and instead continue this contract in
force. The election by the spouse must be made within 60 days
after we receive due proof of death.
In this event, the retirement date may not be later than the April
1 following the calendar year in which the annuitant would have
attained 70 1/2, or such other date which allows the spouse to
satisfy the minimum distribution requirements under the Internal
Revenue Code of 1986, as amended, its regulation and/or
promulgations by the Internal Revenue Service.
Annuitant's Death After the Retirement Date
If the annuitant dies after the retirement date, the amount
payable, if any, will be as provided in the Annuity Payment Plan
then in effect.
<PAGE>
PAGE 13
PURCHASE PAYMENTS
Purchase Payments
Purchase payments are the payments you make for this contract and
the benefits it provides. Purchase payments must be paid or mailed
to us at our home office or to an authorized agent. If requested,
we'll give you a receipt for your purchase payments. Upon payment
to us, purchase payments become our property.
Net purchase payments are that part of your purchase payments
applied to the contract value. A net purchase payment is equal to
the purchase payment less any applicable premium tax charge.
Amount and Intervals
Purchase payments may be paid in a single sum or in installments
until the earlier of: (1) the date this contract terminates by
surrender or otherwise; or (2) the date on which annuity payments
begin.
Subject to the Payment Limits Provision you may: (1) stop and/or
restart purchase payments; or (2) increase or decrease the amount
of your purchase payments; or (3) change the interval of your
purchase payments.
Payment Limits Provision
Maximum Purchase Payments - The maximum purchase payments in the
first or later contract years may not exceed the amounts shown
under Contract Data.
Minimum Purchase Payments - The minimum purchase payment is $50 per
month which on a annualized basis equals $600.
Employer purchase payments for any taxable year made in connection
with a Simplified Employee Pension Plan, may not exceed 15% of your
compensation or $30,000 whichever is less. In the case of a
rollover contribution described in Sections 402(a) (5), 402(a) (7),
403(a) (4), 403(b) (8) or, 408(d) (3), of the Internal Revenue Code
of 1986, as amended, there is no limit on the amount of your
purchase payment. All purchase payments must be made in cash. If
you die before your entire interest in this contract has been
distributed to you, and your beneficiary is other than your
surviving spouse, no additional purchase payments will be accepted
from your beneficiary under this contract.
We also reserve the right to cancel this contract if both of the
following conditions exist at the same time: (1) no purchase
payments have been paid for a continuous period of 36 months; and
(2) less than $600 in purchase payments have been paid under this
contract. In this event we will give you 30 days written notice of<PAGE>
PAGE 14
PURCHASE PAYMENTS (continued)
our intent to cancel this contract. Upon such cancellation we will
pay you the contract value in one sum. This contract will then
terminate.
Allocation of Purchase Payments
You instruct us on how you want your purchase payments allocated
among the fixed account and variable subaccounts. Your choice for
each account may be made in any whole percent from 0% to 100% as
long as the total adds up to 100%. Your allocation instructions as
of the contract date are shown under Contract Data. By written
request, or by another method agreed to by us, you may change your
choice of accounts or percentages. The first net purchase payment
will be allocated as of the end of the valuation period during
which we make an affirmative decision to issue this contract. Net
purchase payments after the first will be allocated as of the end
of the valuation period during which we receive the payment at our
home office.
<PAGE>
PAGE 15
CONTRACT VALUE
Contract Value
The contract value at any time is the sum of: (1) the Fixed Account
Contract Value; and (2) the Variable Account Contract Value.
If: (1) part or all of the contract value is surrendered; or (2)
charges described herein are made against the contract value; then
a number of accumulation units from the variable subaccounts and an
amount from the fixed account will be deducted to equal such
amount. For surrenders, deductions will be made from the fixed or
variable subaccounts that you specify. Otherwise, the number of
units from the variable subaccounts and the amount from the fixed
account will be deducted in the same proportion that your interest
in each bears to the total contract value.
Fixed Account Contract Value
The fixed account contract value at any time will be: (1) the sum
of all amounts credited to the fixed account under this contract;
less (2) any amounts deducted for charges or surrenders.
Interest to be Credited
We will credit interest to the fixed account contract value.
Interest will begin to accrue on the date the purchase payments
which are received in our home office become available to us for
use. Such interest will be credited at rates that we determine
from time to time. However, we guarantee that the rate will not be
less than the Guaranteed Interest Rate shown under Contract Data.
Variable Account Contract Value
The variable account contract value at any time will be: (1) the
sum of the value of all variable subaccount accumulation units
under this contract resulting from purchase payments so allocated,
or transfers among the variable and fixed accounts; less (2) any
units deducted for charges or surrenders.
Contract Administrative Charge
We charge a fee for establishing and maintaining our records for
this contract. The charge is $30 per year and is deducted from the
contract value at the end of each contract year or, if earlier,
when the contract is fully surrendered. We waive this charge if
your contract value, or your total purchase payments less any
purchase payments surrendered, equals or exceeds $25,000. The
charge does not apply after settlement of this contract under an
annuity payment plan.
Premium Tax Charges
A charge will be made by us against the contract value of this
contract at the time that any premium taxes not previously deducted
are payable.
<PAGE>
PAGE 16
CONTRACT VALUE (continued)
Transfers of Contract Values
While this contract is in force prior to the settlement date,
transfer of contract values may be made as outlined below:
1. You may transfer all or a part of the values held in
one or more of the variable subaccounts to another one
or more of the variable subaccounts. Subject to item
2, you may also transfer values held in one or more of
the variable subaccounts to the fixed account.
2. On or within the 30 days after a contract anniversary
you may transfer values from the fixed account to one
or more of the variable subaccounts. Only one such
transfer is allowed during this period each year. If
such a transfer is made, no transfers from a variable
subaccount to the fixed account may be made until the
next contract anniversary.
You may make a transfer by written request. Transfer requests may
also be made according to telephone procedures or automated
transfer procedures that are then currently in effect, if any.
There is no fee or charge for these transfers. However, the
minimum transfer amount is $250, or if less, the entire value in
the account from which the transfer is being made. The minimum
automated transfer is $50.
<PAGE>
PAGE 17
FIXED AND VARIABLE ACCOUNTS
The Fixed Account
The fixed account is our general account. It is made up of all of
our assets other than: (1) those in the variable subaccounts; and
(2) those in any other segregated asset account.
The Variable Account
The variable account is a separate investment account of ours. It
consists of several subaccounts which are named under Contract
Data. We have allocated a part of our assets for this contract to
the variable accounts. Such assets remain our property. However,
they may not be charged with the liabilities from any other
business in which we may take part.
Investments of the Variable Account
Purchase payments applied to the variable subaccounts will be
allocated as specified by the owner. Each variable subaccount will
buy, at net asset value, shares of the fund shown for that
subaccount under Contract Data or as later added or changed.
We may change the mutual funds from which the variable subaccounts
buy shares if laws or regulations change, the existing funds become
unavailable or in our judgment, the funds are no longer suitable
for the subaccounts. If any of these situations occur, we would
have the right to substitute funds other than those shown under
Contract Data. We may also add additional subaccounts investing in
other funds.
When required, we would first seek approval of the Securities and
Exchange Commission and, the insurance regulator of the state where
this contract is delivered.
Valuation of Assets
Mutual fund shares in the variable subaccounts will be valued at
their net asset value.
Variable Account Accumulation Units
The company will credit net purchase payments and amounts of
variable subaccount transfers in the form of accumulation units.
The number of units to be credited to each subaccount will be
determined by dividing the net amount allocated to that subaccount
by the unit value of the subaccount. In the case of the initial
net purchase payment, units will be credited on the date we make an
affirmative decision to issue this contract. For additional
payments, units will be credited as of the valuation period during
which the purchase payment is received.
<PAGE>
PAGE 18
FIXED AND VARIABLE ACCOUNTS (continued)
The amount of any Contract Administrative Charge, or other
applicable charges or partial surrenders from the variable account
contract value will reduce the number of units credited to the
contract in the variable subaccounts. A transfer out of a
subaccount will reduce the number of units credited to the contract
in that subaccount while a transfer into a subaccount will increase
the number of units.
Variable Account Accumulation Unit Value
The value of an accumulation unit for each of the variable
subaccounts was arbitrarily set at $1 when the first mutual fund
shares were bought. The value for any later valuation period is
found as follows:
The accumulation unit value for each variable
subaccount for the last prior valuation period is
multiplied by the net investment factor for the same
account for the next following valuation period. The
result is the accumulation unit value. The value of an
accumulation unit may increase or decrease from one
valuation period to the next.
Net Investment Factor
The net investment factor is an index applied to measure the
investment performance of a variable subaccount from one valuation
period to the next. The net investment factor may be greater or
less than one; therefore, the value of an accumulation unit may
increase or decrease.
The net investment factor for any such subaccount for any valuation
period is determined by: dividing (1) by (2) and subtracting (3)
from the result. This is done where:
(1) is the sum of:
a. the net asset value per share of the mutual fund
held in the variable subaccount determined at the
end of the current valuation period; plus
b. the per share amount of any dividend or capital
gain distributions made by the mutual fund held in
the variable subaccount, if the "ex-dividend" date
occurs during the current valuation period.
(2) is the net asset value per share of the mutual fund
held in the variable subaccount, determined at the end
of the last prior valuation period.
(3) is a factor representing the mortality and expense risk
charge.
<PAGE>
PAGE 19
FIXED AND VARIABLE ACCOUNTS (continued)
Mortality and Expense Risk Charge
In calculating accumulation unit values we will deduct a mortality
and expense risk charge from the variable subaccounts equal, on an
annual basis, to 1.25% of the daily net asset value. This
deduction is made to compensate us for assuming the mortality and
expense risks under contracts of this type. We estimate that
approximately 2/3 of this charge is for assumption of mortality
risk and 1/3 is for assumption of expense risk. The deduction will
be: (1) made from each variable subaccount; and (2) computed on a
daily basis.
Annuity Unit Value
The value of an Annuity Unit for each variable subaccount was
arbitrarily set at $1 when the first mutual funds were bought. The
value for any later valuation period is found as follows:
1. The annuity unit value for each variable subaccount for the
last prior valuation period is multiplied by the net
investment factor for the subaccount for the valuation period
for which the annuity unit value is being calculated.
2. The result is multiplied by an interest factor. This is done
to neutralize the assumed investment rate which is built into
the annuity tables on page 15 and 16.
<PAGE>
PAGE 20
SURRENDER PROVISIONS
Surrender
By written request and subject to the rules below you may:
1. surrender this contract for the total surrender value;
or
2. partially surrender this contract for a part of the
surrender value.
Surrender Value
The surrender value at any time will be:
1. the contract value;
2. minus the contract administrative charge;
3. minus any surrender charge.
Surrender Charge
A surrender charge may apply during the first eight contract years.
To determine the charge during this period for a partial or total
surrender we first divide the contract value into two parts.
1. Contract earnings - This is the contract value minus
the sum of all purchase payments we have received that
have not been previously surrendered.
2. Purchase payments - These are the total purchase
payments we received that have not been previously
surrendered.
We will then surrender your contract value in the following order
so that the amount surrendered, less any surrender charge that
applies, equals your requested surrender amount:
1. Contract Earnings, if any, are surrendered first. There is no
surrender charge on contract earnings.
2. Next, if necessary, we surrender purchase payments not
previously surrendered.
The surrender charge shown under Contract Data applies to purchase
payments surrendered.
Determining Contract Earnings
Contract earnings are determined by looking at the entire contract
value, not just the earnings of a certain variable subaccount or
the fixed account.
<PAGE>
PAGE 21
SURRENDER PROVISIONS (continued)
For example, the gains you may have in a certain variable
subaccount or interest earned in the fixed account may be offset by
losses in another variable subaccount. This may result in not
having any contract earnings available at the time of surrender.
At the time of a surrender, we will surrender any amounts
representing contract earnings first in order to minimize any
applicable surrender charge.
Waiver of Surrender Charges
There are no surrender charges for:
1. Death benefit payments; or
2. Contracts settled under an Annuity Payment Plan; or
3. Amounts surrendered to meet applicable minimum distribution
requirements under the Internal Revenue Code of 1986, as
amended, its regulations and/or promulgations of the Internal
Revenue Service. Surrenders under this waiver provision are
limited to one per year unless we agree otherwise.
Rules For Surrender
All surrenders will have the following conditions:
1. You must apply by written request or other method
agreed to by us: (a) while this contract is in force;
and (b) prior to the earlier of the retirement date or
the death of the annuitant.
2. Unless we agree otherwise, you must surrender an amount
equal to at least $250 or the entire contract value, if
less. The contract value after a partial surrender
must be at least $600.
3. The amount surrendered, less any charges, will normally
be paid to you within seven days of the receipt of your
written surrender request and the return of this
contract, if required. For surrenders from the fixed
account, we have the right to defer payment to you for
up to 6 months from the date we receive your request.
4. For partial surrenders, if you do not specify from
which accounts the surrender is to be made, the
surrender will be made from the variable subaccounts
and fixed account in the same proportion as your
interest in each bears to the contract value.
Upon surrender for the full surrender value this contract will
terminate. We may require that you return the contract to us
before we pay the full surrender value.
<PAGE>
PAGE 22
SURRENDER PROVISIONS (continued)
Suspension or Delay in Payment of Surrender
We have the right to suspend or delay the date of any surrender
payment from the variable subaccounts for any period:
1. When the New York Stock Exchange is closed; or
2. When trading on the New York Stock Exchange is
restricted; or
3. When an emergency exists as a result of which: (a)
disposal of securities held in the variable subaccounts
is not reasonably practicable; or (b) it is not
reasonably practicable to fairly determine the value of
the net assets of the variable account; or
4. During any other period when the Securities and
Exchange Commission, by order, so permits for the
protection of security holders.
Rules and regulations of the Securities and Exchange Commission
will govern as to whether the conditions set forth in 2 and 3
exist.
Surrenders may be taxed
Surrenders are subject to tax and possibly penalty charges
according to the Internal Revenue Code.
<PAGE>
PAGE 23
ANNUITY PROVISIONS
Settlement
When settlement occurs, the contract value will be applied to make
annuity payments. The first payment will be made as of the
retirement date. This date is shown under Contract Data. Before
payments begin we will require satisfactory proof that the
annuitant is alive. We may also require that you exchange this
contract for a supplemental contract which provides for the annuity
payments.
Change of Retirement Date
You may change the retirement date shown for this contract. Tell
us the new date by written request. The maximum Retirement Date is
the later of:
1. April 1 following the calendar year in which the
annuitant attains age 70 1/2; or
2. such other date which satisfies the minimum
distribution requirements under Internal Revenue Code
of 1986, as amended, its regulations and/or
promulgations by the Internal Revenue Service.
Also, if you select a new retirement date, it must be at least 30
days after we receive your written request at our home office.
Annuity Payment Plans
Subject to the terms of this contract, annuity payments may be made
on a fixed dollar basis, a variable basis, or a combination of
both. You can schedule receipt of annuity payments according to
one of the Plans A through E below or another plan agreed to by us
provided:
1. the Plan selected provides for payments over the life
of the annuitant or over the life of the annuitant and
a joint annuitant; or
2. the Plan selected provides for payments over a period
which does not exceed the life expectancy of the
annuitant, or the life expectancy of the annuitant and
a joint annuitant; and
3. the Plan selected meets the minimum death incidental
benefit requirements under the Internal Revenue Code of
1986, as amended. <PAGE>
PAGE 24
ANNUITY PROVISIONS (continued)
Plan A - This provides monthly annuity payments during
the lifetime of the annuitant. No payments will be
made after the annuitant dies.
Plan B - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a period of at least
five, ten or fifteen years. You must select the
guaranteed period.
Plan C - This provides monthly annuity payments during
the lifetime of the annuitant with a guarantee by us
that payments will be made for a certain number of
months. We determine the number of months by dividing
the amount applied under this Plan by the amount of the
first monthly annuity payment.
Plan D - Monthly payments will be paid during the
lifetime of the annuitant and a joint annuitant. When
either the annuitant or the joint annuitant dies we
will continue to make monthly payments during the
lifetime of the survivor. No payments will be paid
after the death of both the annuitant and joint
annuitant.
Plan E - (Installment for a specified period) This
provides monthly annuity payments for a period of
years. The period of years may be no less than 10 nor
more than 30.
By written request to us at least 30 days before the Retirement
Date, you may select the Plan. If at least 30 days before the
Retirement Date we have not received at our home office your
written request to select a Plan, we will make fixed-dollar
payments according to Plan B with payments guaranteed for ten
years.
If you select a Plan that has a payment amount that is the same as
another Plan having a longer guarantee period, then the Plan with
the longer guarantee period will be deemed to have been chosen.
If the amount to be applied to a Plan would not provide an initial
monthly payment of at least $20, we have the right to make a lump
sum payment of the contract value.
Allocation of Contract Values at Settlement
At the time of settlement under an Annuity Payment Plan you may
reallocate your contract value to the Fixed Account to provide
fixed dollar payments and/or among the variable subaccounts to
provide variable annuity payments. Unless we agree otherwise, you
may use a maximum of five variable subaccounts at any one time
during settlement.
<PAGE>
PAGE 25
ANNUITY PROVISIONS (continued)
Fixed Annuity
A fixed annuity is an annuity with payments that are guaranteed by
us as to dollar amount. Fixed annuity payments after the first
will never be less than the amount of the first payment. At
settlement, the fixed account contract value will be applied to the
applicable Annuity Table. This will be done in accordance with the
Payment Plan chosen. The amount payable for each $1,000 so applied
is shown in Table B on page 16.
Variable Annuity
A variable annuity is an annuity with payments which: (1) are not
predetermined or guaranteed as to dollar amount; and (2) vary in
amount with the investment experience of the variable subaccounts.
Determination of First Variable Annuity Payment
At settlement, the variable account contract value will be applied
to the applicable Annuity Table. This will be done: (1) on the
valuation date on or next preceding the 7th calendar day before the
retirement date; and (2) in accordance with the Payment Plan
chosen. The amount payable for the first payment for each $1,000
so applied is shown in Table A on page 15.
Variable Annuity Payments After the First Payment
Variable annuity payments after the first vary in amount. The
amount changes with the investment performance of the variable
subaccounts. The dollar amount of variable annuity payments after
the first is not fixed. It may change from month to month. The
dollar amount of such payments is determined as follows:
1. The dollar amount of the first annuity payment is
divided by the value of an annuity unit as of the
valuation date on or next preceding the 7th calendar
day before the retirement date. This result
establishes the fixed number of annuity units for each
monthly annuity payment after the first. This number
of annuity units remains fixed during the annuity
payment period.
2. The fixed number of annuity units is multiplied by the
annuity unit value as of the valuation date on or next
preceding the 7th calendar day before the date the
payment is due. This result establishes the dollar
amount of the payment.
We guarantee that the dollar amount of each payment after the first
will not be affected by variations in expenses or mortality
experience.
<PAGE>
PAGE 26
ANNUITY PROVISIONS (continued)
Exchange of Annuity Units
After annuity payments begin, annuity units of any variable
subaccount may be exchanged for units of any of the other variable
subaccounts. This may be done no more than once a year. Unless we
agree otherwise you may use a maximum of five variable subaccounts
at any one time. Once annuity payments start no exchanges may be
made to or from any fixed annuity.<PAGE>
PAGE 27
TABLE OF SETTLEMENT RATES
Annuity payments for each $1,000 of value applied under a Payment
Plan will be based on our table of settlement rates in effect on
the date of settlement. The amount of the first monthly variable
annuity payment, based on a 5% assumed investment return, is
guaranteed to be not less than the amount shown in Table A for the
adjusted age of the annuitant(s). The amount of the first and all
subsequent fixed dollar annuity payments is guaranteed to be not
less than the amount shown in Table B for the adjusted age of the
annuitant(s). Adjusted Age shall be equal to the age nearest
birthday minus an "adjustment" depending on the calendar year of
birth of the annuitant as follows:
<TABLE><CAPTION>
Calendar Year of Calendar Year of
Annuitant's Birth Adjustment Annuitant's Birth Adjustment
<C> <C> <C> <C>
Prior to 1920 0 1945 through 1949 6
1920 through 1924 1 1950 through 1959 7
1925 through 1929 2 1960 through 1969 8
1930 through 1934 3 1970 through 1979 9
1935 through 1939 4 1980 through 1989 10
1940 through 1944 5 After 1989 11
TABLE A Dollar Amount of First Monthly Variable Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 years 5 years Same 5 years 10 years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 5.44 5.43 5.40 5.34 5.33 55 4.69 4.82 4.94 5.06 5.17
60 5.89 5.87 5.80 5.69 5.70 60 4.89 5.06 5.24 5.41 5.55
65 6.51 6.47 6.34 6.14 6.21 65 5.17 5.41 5.65 5.89 6.09
66 6.66 6.61 6.47 6.24 6.33 66 5.24 5.49 5.76 6.01 6.23
67 6.82 6.77 6.60 6.34 6.46 67 5.31 5.58 5.86 6.14 6.37
68 7.00 6.93 6.74 6.44 6.60 68 5.38 5.68 5.98 6.28 6.53
69 7.19 7.11 6.89 6.54 6.74 69 5.46 5.78 6.11 6.43 6.70
70 7.39 7.31 7.05 6.65 6.90 70 5.55 5.89 6.25 6.59 6.88
71 7.62 7.51 7.21 6.75 7.06 71 5.65 6.01 6.40 6.77 7.07
72 7.86 7.74 7.38 6.86 7.24 72 5.75 6.14 6.56 6.96 7.29
73 8.12 7.98 7.56 6.96 7.42 73 5.85 6.28 6.73 7.16 7.52
74 8.41 8.23 7.74 7.06 7.63 74 5.97 6.43 6.92 7.39 7.77
75 8.72 8.51 7.93 7.15 7.84 75 6.09 6.59 7.12 7.63 8.04
76 9.05 8.80 8.12 7.24 8.06 76 6.23 6.77 7.35 7.89 8.33
77 9.42 9.11 8.31 7.32 8.31 77 6.37 6.96 7.59 8.18 8.65
78 9.81 9.44 8.51 7.40 8.56 78 6.53 7.16 7.85 8.48 8.99
79 10.24 9.80 8.70 7.46 8.83 79 6.70 7.39 8.13 8.82 9.36
80 10.71 10.17 8.88 7.52 9.13 80 6.88 7.63 8.43 9.18 9.75
81 11.22 10.55 9.06 7.58 9.43 81 7.07 7.89 8.77 9.57 10.18
82 11.76 10.96 9.23 7.62 9.76 82 7.29 8.18 9.13 9.99 10.64
83 12.36 11.38 9.40 7.66 10.10 83 7.52 8.48 9.52 10.45 11.14
84 13.00 11.81 9.55 7.69 10.47 84 7.77 8.82 9.94 10.94 11.67
85 13.70 12.25 9.68 7.72 10.85 85 8.04 9.18 10.39 11.46 12.24
* Adjusted age of annuitant.
Table A above is based on the "1983 Individual Annuitant Mortality Table A". Settlement
rates for any age not shown above, will be calculated on the same basis as those rates shown
in the table above. Such rates will be furnished by us upon request.
<PAGE>
PAGE 28
TABLE OF SETTLEMENT RATES (Continued)
Fixed dollar annuity payments will not be less than those shown in Table B. In addition, the
amount of such payments will not be less than that which would be provided if a single
premium immediate annuity contract then offered by us to annuitant's in the same class were
to be purchased with the greater of: (1) the surrender value of this contract; or (2) 95% of
the contract value of this contract.
TABLE B Dollar Amount of First Monthly Fixed Annuity Payment Per $1,000 Applied
PLAN A PLAN B PLAN C PLAN D-Joint and Survivor
Adjusted Age of Joint Annuitant
Adj. Life 5 years 10 years 15 years With Adj 10 years 5 years Same 5 years 10 years
Age* Income Certain Certain Certain Refund Age* Younger Younger Age Older Older
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
55 4.25 4.25 4.22 4.18 4.10 55 3.47 3.62 3.77 3.90 4.01
60 4.72 4.70 4.66 4.57 4.48 60 3.71 3.90 4.10 4.28 4.42
65 5.35 5.32 5.22 5.05 4.97 65 4.01 4.28 4.54 4.79 4.99
66 5.51 5.47 5.36 5.16 5.08 66 4.08 4.36 4.65 4.91 5.13
67 5.67 5.63 5.50 5.26 5.20 67 4.16 4.46 4.76 5.04 5.28
68 5.85 5.80 5.65 5.37 5.33 68 4.24 4.56 4.89 5.19 5.43
69 6.04 5.98 5.80 5.49 5.47 69 4.33 4.67 5.02 5.34 5.61
70 6.25 6.18 5.96 5.60 5.61 70 4.42 4.79 5.16 5.51 5.79
71 6.47 6.39 6.14 5.71 5.76 71 4.52 4.91 5.31 5.69 5.99
72 6.71 6.62 6.31 5.83 5.93 72 4.63 5.04 5.48 5.88 6.20
73 6.97 6.86 6.50 5.94 6.10 73 4.74 5.19 5.66 6.09 6.43
74 7.26 7.12 6.69 6.04 6.28 74 4.86 5.34 5.85 6.32 6.68
75 7.56 7.39 6.89 6.14 6.48 75 4.99 5.51 6.06 6.56 6.96
76 7.90 7.69 7.09 6.24 6.68 76 5.13 5.69 6.28 6.82 7.25
77 8.26 8.01 7.29 6.33 6.90 77 5.28 5.88 6.52 7.11 7.56
78 8.65 8.34 7.49 6.41 7.13 78 5.43 6.09 6.78 7.42 7.90
79 9.07 8.69 7.69 6.48 7.38 79 5.61 6.32 7.07 7.75 8.27
80 9.53 9.07 7.89 6.55 7.64 80 5.79 6.56 7.38 8.11 8.67
81 10.03 9.46 8.08 6.61 7.91 81 5.99 6.82 7.71 8.50 9.09
82 10.57 9.87 8.26 6.66 8.21 82 6.20 7.11 8.07 8.92 9.55
83 11.16 10.30 8.43 6.70 8.51 83 6.43 7.42 8.45 9.37 10.04
84 11.79 10.74 8.59 6.74 8.83 84 6.68 7.75 8.87 9.86 10.57
85 12.48 11.19 8.74 6.77 9.18 85 6.96 8.11 9.32 10.38 11.14
* Adjusted age of annuitant
Table B above is based on the "1983 Individual Annuitant Mortality Table A" assuming a 3%
annual effective interest rate. Settlement rates for any age are not shown above, or any
combination of ages not shown above, will be calculated on the same basis as those rates
shown in the table above. Such rates will be furnished by us upon request. Amounts shown in
the Table below are based on assuming a 3% annual effective interest rate.
PLAN E Dollar Amount of Each Monthly Fixed Dollar Annuity Payment Per $1,000 Applied
Years Monthly Years Monthly Years Monthly
Payable Payment Payable Payment Payable Payment
<C> <C> <C> <C> <C> <C>
10 $ 9.61 17 $ 6.23 24 $ 4.84
11 8.86 18 5.96 25 4.71
12 8.24 19 5.73 26 4.59
13 7.71 20 5.51 27 4.47
14 7.26 21 5.32 28 4.37
15 6.87 22 5.15 29 4.27
16 6.53 23 4.99 30 4.18
/TABLE
<PAGE>
PAGE 29
DEFERRED ANNUITY CONTRACT
- - Flexible purchase payments.
- - Optional fixed dollar or variable accumulation values and annuity
payments.
- - Annuity payments to begin on the retirement date.
- - This contract is nonparticipating. Dividends are not payable.
IDS Life Insurance Company
of New York
Box 5144
Albany, New York 12205
<PAGE>
<PAGE>
PAGE 1
REVISED CHARTER OF IDS LIFE INSURANCE COMPANY OF NEW YORK
Revised As Of April, 1992
WE, the undersigned, all being natural persons of full
age, and at least two-thirds of us citizens of the United States,
and at least three (3) of us being residents of the State of New
York, do hereby declare our intention to form a stock corporation
for the purpose of doing the kinds of insurance business authorized
by Paragraphs "1", "2", and "3", respectively, of Section 1113 of
the Insurance Law of the State of New York, and for that purpose do
hereby adopt the following charter:
CHARTER
ARTICLE I
The name of this Corporation shall be:
IDS LIFE INSURANCE COMPANY OF NEW YORK
ARTICLE II
The principal office of this Corporation shall be
located in the County of Albany in the State of New York.
ARTICLE III
SECTION 1. The kind or kinds of insurance to be
transacted by the Corporation are those kinds specified in
Paragraphs "1", "2", and "3", Section 1113, of Article IV of the
Insurance Law of the State of New York, as follows:
1. Life insurance," meaning every insurance upon the
lives of human beings and every insurance appertaining thereto.
The business of life insurance shall be deemed to include the
granting of endowments benefits; additional benefits in the event
of death by accident or accidental means; additional benefits
operating to safeguard the contract from lapse, or to provide a
special surrender value, in the event of total and permanent
disability of the insured; and optional modes of settlement of
proceeds. Amounts paid to the Corporation for life insurance and
proceeds applied under optional modes of settlement or under
dividend options may be allocated by the Corporation to one or more
separate accounts pursuant to Section 4240.
2. "Annuities," meaning all agreements to make
periodical payments where the making or continuance of all or of
some of a series of such payments, or the amount of any such
payment, is dependent upon the continuance of human life, except
payments made under the authority of paragraph one. Amounts paid
to the Corporation to provide annuities and proceeds applied under
optional modes of settlement or under dividend options may be
allocated by the Corporation to one or more separate accounts
pursuant to Section 4240.
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PAGE 2
3. "Accident and health insurance," meaning (a)
insurance against death or personal injury by accident or by any
specified kind or kinds of accident and insurance against sickness,
ailment or bodily injury, including insurance providing disability
benefits pursuant to article nine of the workmen's compensation
law, except as specified in subparagraph (b) following; and (b)
Non-cancelable disability insurance, meaning insurance against
disability resulting from sickness, ailment or bodily injury (but
not including insurance solely against accidental injury) under any
contract which does not give the insurer the option to cancel or
otherwise terminate the contract at or after one year from its
effective date or renewal date.
SECTION 2. The Corporation may also engage in the
reinsurance of the kinds of insurance business it is authorized to
do.
SECTION 3. The foregoing enumeration of specific
kinds of insurance shall not be held to limit or restrict the
powers of the Corporation to carry on any other business to the
extent necessarily or properly incidental to such kinds of
insurance.
SECTION 4. The Corporation shall have full power
and authority to cede and assume reinsurance of any risks subject
to the Insurance Law and the rules and regulations of the Insurance
Department of the State of New York.
SECTION 5. The Corporation shall have and may
exercise such other powers as are conferred upon it by law.
ARTICLE IV
The mode and manner in which the corporate powers of
the Corporation shall be exercised is through a Board of Directors
and through such Committees of the Board of Directors, officers and
agents as such Board and the By-Laws of the Corporation shall
empower.
ARTICLE V
SECTION 1. The number of the directors of the
Corporation shall be not less than thirteen (13) nor more than
twenty-three (23) and shall be determined by the provisions of the
By-Laws. In no case shall the number of directors be less than
thirteen (13). In no case shall a decrease in the number of
directors shorten the term of any incumbent director.
SECTION 2. The directors shall be elected at each
annual meeting of the stockholders of the Corporation, and the
directors so elected shall hold office for one year and until their
respective successors shall have been elected and shall have
qualified. The directors shall be chosen and elected by a
plurality of the whole number of shares voted.
SECTION 3. Any director may be removed with or
without cause by the majority vote of the stockholders present in
person or by proxy at any meeting of stockholders. Not less than
one-third of the directors may call a Special Meeting for the
purpose of removing any director for cause and at such Special
Meeting so called, such director may be removed by the affirmative
vote of two-thirds of the remaining directors.
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PAGE 3
SECTION 4. Whenever any vacancy in the Board of
Directors shall occur by death, resignation, removal or otherwise,
and whenever the number of directors is increased, such vacancy may
be filled and such additional directors may be elected, for the
remainder of the term in which such event shall happen, by a
majority vote of the directors then in office in such manner as may
be prescribed by the By-Laws.
SECTION 5. If the directors shall not be elected
in any year at the annual meeting of stockholders as hereinabove
provided, or if, because of a vacancy or vacancies on the Board of
Directors, the Number of the Board shall be less than thirteen
(13), the Corporation shall not for that reason be dissolved, but
every director shall continue to hold office and discharge his
duties until his successor shall have been elected.
SECTION 6. At all times a majority of the
directors shall be citizens and residents of the State of New York
or of adjoining states, not less than three (3) thereof shall be
residents of the State of New York, and each director shall be at
least twenty-one (21) years of age.
ARTICLE VI
INDEMNIFICATION OF CORPORATION PERSONNEL
To the extent permitted and in the manner prescribed by
law, the Corporation shall indemnify any person made, or threatened
to be made, a party to any action, suit or proceeding, civil or
criminal, by reason of the fact that he, his testator or intestate,
is or was Director or Officer of the Corporation or of any other
corporation of any type or kind, domestic or foreign, which he
served in any capacity at the request of the Corporation, against
judgements, fines, amounts paid in settlement and reasonable
expenses (which the Corporation may advance), including attorneys'
fees, actually and necessarily incurred as a result of such action,
suit or proceeding, or any appeal therein. The foregoing right of
indemnification shall not be exclusive of any other right to which
any such person may be entitled. Neither the adoption of this
resolution nor any modification or repeal hereof, or of any
provision of any applicable law shall, unless otherwise required by
law, enlarge or diminish any right of indemnification of a Director
or Officer as it existed at the time of accrual of the alleged
cause of action asserted in the threatened or pending action, suit
or proceeding in which the expenses were incurred or other amount
was paid.
INDEMNIFICATION OF OTHER PERSONNEL
The Board, in its discretion, may authorize the
Corporation to indemnify any person, other than a Director or
Officer, for expenses incurred or other amounts paid in any civil
or criminal action, suit or proceeding, to which such person was,
or was threatened to be, made a party by reason of the fact that
he, his testator or intestate, is or was an employee or agent of
the Corporation or of any other corporation of any type or kind,
domestic or foreign, which he served in any capacity at the request
of the Corporation, against judgements, fines, amounts paid in
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PAGE 4
settlement and reasonable expenses (which the Corporation may
advance), including attorney's fees, actually and necessarily
incurred as a result of such action, suit or proceeding, or any
appeal therein.
ARTICLE VII
Except as otherwise provided by law, the presence in
person or by proxy at any meeting of stockholders of the holders of
a majority of shares of the capital stock of the Corporation issued
and outstanding and entitled to vote thereat shall constitute a
quorum. If, however, such majority shall not be represented at any
meeting of the stockholders, the holders of a majority of the
shares present or represented and entitled to vote thereat shall
have power to adjourn the meeting from time to time without notice
until the requisite amount of shares entitled to vote at such
meeting shall be represented. At such adjourned meeting at which
the requisite number of shares entitled to vote thereat shall be
represented, any business may be transacted which might have been
transacted at the meeting as originally notified.
ARTICLE VIII
The names and post office residence addresses of the
directors, who shall serve until the first annual meeting of the
Corporation, are as follows,
POST OFFICE RESIDENCE ADDRESSES
GARY A. BELLER 114 E. 72nd St.,
New York, New York 10021
JOHN C. BOEDER 9 Ridge Court,
Saratoga Springs, New York 12866
ROGER C. COREA 42 Harwood Lane,
East Rochester, New York 14445
CHARLES A. CUCCINELLO 25 Dogwood Drive,
Scarsdale, New York 10583
FRANCIS M. ELLIS 90 Greene St.,
New York, New York 10012
MILTON R. FENSTER 1000 Park Avenue,
New York, New York 10028
DAVID R. HUBERS 72 E. Golden Lake Rd.,
Circle Pines, Minnesota 55014
RICHARD W. KLING 3790 Country Rd. #44,
Minnetrista, Minnesota 55364
EDWARD LANDES 5780 Schafer Rd.,
Edina, Minnesota 55436
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PAGE 5
JAMES A. MITCHELL 2685 North Shore Drive,
Wayzata, Minnesota 55391
MICHAEL P. MONACO 1735 York Avenue,
New York, New York 10128
STEPHEN P. NORMAN 6 Highland Park Place,
Rye, New York 10580
GORDON H. RITZ 560 Indian Mound, Apt. 4A,
Wayzata, Minnesota 55391
MICHAEL R. WOODWARD 2707 Lockport Rd.,
Oakfield, New York 14125
ARTICLE IX
The duration of the corporate existence of this
Corporation shall be perpetual.
ARTICLE IX
The holders of stock of the Corporation shall not have
any pre-emptive, preferential or other right to subscribe for or
purchase or acquire any shares of any class of stock or any other
securities of the Corporation, whether now or hereafter authorized,
and whether or not convertible into, or evidencing or carrying the
right to purchase, shares of stock of any class or any other
securities now or hereafter authorized and whether the same shall
be issued for cash, services or property, or by way of dividend, or
otherwise, other than such right, if any, as the Board of Directors
in its discretion from time to time may determine; but all such
shares of stock or other securities may be issued and disposed of
by the Board of Directors, to the extent permitted by law, in such
manner to such person or persons, on such terms, for such
consideration and for such corporate purposes as the Board of
Directors may deem advisable.
ARTICLE XI
The amount of the authorized capital of this
Corporation shall be TWO MILLION ($2,000,000) DOLLARS, to consist
of TWO HUNDRED THOUSAND (200,000) shares of stock of the par value
of TEN ($10.00) DOLLARS per share.
ARTICLE XII
The Corporation may establish, maintain and operate
offices and agencies and conduct business outside of the State of
New York and in other states, countries, territories, dependencies,
protectorates and in the District of Columbia, in such form and
manner as the Board of Directors may determine.
ARTICLE XIII
The Board of Directors shall adopt By-Laws for its own
regulation and that of the conduct of the business of the
Corporation, which By-Laws shall nor be inconsistent with this
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PAGE 6
Charter or with the laws of the State of New York, and which By-
Laws may be modified, rescinded or amended from time to time by
majority vote of the Board of Directors at any special meeting
called for that purpose, or at any regular meeting.
<PAGE>
<PAGE>
PAGE 1
AMENDED BY-LAWS AS OF MAY 1992
OF
IDS LIFE INSURANCE COMPANY OF NEW YORK
ARTICLE I
LOCATION
Section 1. The principal office of the Corporation
shall be in the County of Albany and State of New York. The
Corporation may, in addition to the principal office, establish and
maintain such other office or offices, whether in the State of New
York or otherwise, as the Board of Directors may from time to time
designate or the business of the Corporation may require.
ARTICLE II
CORPORATE SEAL
Section 1. The Corporation shall have a seal. The
corporate seal shall have inscribed thereon the name of the
Corporation. The corporate seal shall be in seal form and have
inscribed thereon such additional words and symbols as the Board of
Directors may from time to time prescribe. The seal may be used by
causing it or a facsimile thereof to be impressed or affixed or
otherwise reproduced.
ARTICLE III
MEETINGS OF SHAREHOLDERS
Section 1. Time and Place. All meetings of the
shareholders for the election of directors and all meetings of
shareholders for that or any other purpose may be held at such
place within or without the State of New York, and at such time as
may be designated in the notice of the meeting.
Section 2. Annual Meetings. The annual meeting of
shareholders shall be held on the Thursday following the first
Tuesday on or after the nineteenth day of April in each year, if
not a legal holiday, and if a legal holiday, then on the next
succeeding business day, at 10:30 o'clock a.m. or at such other day
or hour as may from time to time be designated by the Board of
Directors.
Section 3. Special Meetings. Except as otherwise
provided by statute, special meetings of shareholders may be called
for any purpose or purposes at any time by the Chairman of the
Board of Directors, the President, the Board of Directors, or by
the President or Secretary upon the written request of one or more
shareholders holding a majority in interest of the stock of the
Corporation issued and outstanding and entitled to vote at such
meeting. Any such request shall state the purpose or purposes of
the proposed meeting.
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PAGE 2
Section 4. Notice of Meetings. Notice of the time and
place of holding each annual and special meeting of the
shareholders shall be in writing and signed by the President or a
Vice President or the Secretary or an Assistant Secretary and a
copy thereof shall be served, either personally or by mail, upon
each shareholder entitled to vote at such meeting, not less than
ten or more than fifty days before the meeting, and if mailed, it
shall be directed to such shareholder at his address as it appears
on the books of the Corporation a written request that notices
intended for him be mailed to some other address, in which case it
shall be mailed to the address designated in such request.
The notice of every special meeting, besides stating
the time and place of such meeting, shall state the purpose or
purposes thereof, and no business other than that specified in such
notice or germane thereto shall be transacted at the meeting.
Section 5. Waiver of Notice. Notice of meeting need
not be given (1) to any shareholder who submits a signed waiver of
notice, in person or by proxy, whether before or after the meeting,
or (2) to any shareholder who is in attendance at any meeting, in
person or by proxy, without protesting prior to the conclusion of
the meeting the lack of notice of such meeting.
Section 6. Quorum. At every meeting of the
shareholders of the Corporation, except as otherwise provided by
law, the holders of a majority of the issued and outstanding shares
of capital stock of the Corporation, present in person or by proxy
and entitled to vote thereat, shall constitute a quorum for the
transaction of business. In the absence of a quorum a majority in
interest of the shareholders so present or represented and entitled
to vote thereat may adjourn the meeting from time to time and place
to place until a quorum is obtained, and the meeting may be held as
adjourned without further notice. At any such adjourned meeting at
which a quorum is present any business maybe transacted which might
have been transacted at the meeting as originally called. The
shareholders present at a duly called or held meeting at which a
quorum is present may continue to transact business until a final
adjournment, notwithstanding the withdrawal of enough shareholders
to leave less than a quorum.
Section 7. Voting. At all meetings of shareholders
every shareholder entitled to vote thereat shall be entitled to one
vote, in person or by proxy, for each share of stock outstanding in
his name on the books of the Corporation on the date for the
determination of shareholders entitled to vote at such meetings.
Every proxy must be executed in writing by the shareholder or by
his duly authorized attorney and must be delivered to the secretary
of the meeting. No proxy shall be valid after the expiration of
eleven months from the date of its execution unless the shareholder
executing it shall have specified therein a longer duration. At
all meetings of the shareholders, a quorum being present, all
matters except as otherwise provided by law, or the Charter of the
Corporation, or these By-Laws shall be decided by a majority in
interest of the shareholders of the Corporation present in person
or by proxy and entitled to vote. All elections of directors may,
but need not be, held by ballot.
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PAGE 3
Section 8. Organization. Meetings of the shareholders
shall be presided over by the Chairman of the Board of Directors
or, if he is not present, by the President or, if none of the
foregoing is present, by a chairman to be chosen by a majority of
the shareholders entitled to vote who are present in person or by
proxy at the meeting. The Secretary of the Corporation, or in his
absence an Assistant Secretary, shall act as secretary of every
meeting, but if neither the Secretary nor an Assistant Secretary is
present, the meeting shall choose any person present to act as
secretary of the meeting.
Section 9. Consents. Whenever by any provision of law
or of the Charter of this Corporation, the vote of shareholders at
a meeting thereof is required or permitted to be taken in
connection with any corporate action, the meeting and vote of
shareholders may be dispensed with, if all the shareholders who
would have been entitled to vote upon the action if such meeting
were held, shall consent in writing to such action being taken.
However, this section shall not be construed to alter or modify any
provision of law or of the Charter under which the written consent
of the holders of less than all outstanding shares is sufficient
for corporate action.
ARTICLE IV
BOARD OF DIRECTORS
Section 1. Election and Qualification of Directors.
Directors shall be elected at the annual meeting of shareholders by
a plurality of the votes cast and shall hold office for one year
until their respective successors shall have been elected and shall
have qualified. All directors shall be of full age and at least a
majority shall be citizens and residents of the State of New York
or of adjoining states and not less than three (3) shall be
residents of the State of New York. Directors need not be
shareholders.
Section 2. Number of Directors. The number of
directors shall not be less than thirteen (13) nor more than
twenty-three (23) subject to change by action of the shareholders
or by resolution of the Board of Directors, the number of directors
of the Corporation shall be fourteen (14). Any change in the
number of directors made by resolution of the Board of Directors
shall require the affirmative cote of a majority of all directors
then in office but no decrease in the number of directors so made
shall shorten the term of any incumbent directors.
Section 3. Vacancies. A vacancy or vacancies in the
Board resulting from death, resignation or removal of any director
or from the increase in the number of directors, or for any other
cause, may be filled for the remainder of the term by majority vote
of the remaining directors at any regular meeting of the Board or
at any special meeting called for that purpose. A director so
elected shall not take office or exercise the duties thereof until
ten (10) days after written notice of his election shall have been
filed in the office of the Superintendent of Insurance of the State
of New York.
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PAGE 4
Section 4. Duties and Powers. The Board of Directors
shall have control and management of the affairs and property of
the Corporation and may adopt such rules and regulations for the
conduct of their meetings and the management of the Corporation as
they deem proper and not inconsistent with law or with the Charter
of the Corporation or with these By-Laws.
Section 5. Meetings. Meetings of the Board of
Directors shall be held at such place within or without the State
of New York as may from time to time be fixed by resolution of the
Board of
Directors, or as may be specified in the notice of the meeting.
Regular meetings of the Board of Directors shall be held at such
times as may from time to time be fixed by resolution of the Board
of Directors, and special meetings may be held at any time upon the
call of the Chairman of the Board of Directors, the President or
any Vice President or the Secretary or an Assistant Secretary or
any two directors by oral, telegraphic or written notice duly
served on or sent or mailed to each director not less than two days
before such meeting. A meeting of the Board of Directors may be
held without notice immediately after the annual meeting of
shareholders. Notice need not be given of regular meetings of the
Board of Directors. Meetings may be held at any time without
notice if all the directors are present, or if at any time before
or after the meeting those not present waive notice of the meeting
in writing.
Section 6. Quorum. A majority of the Board of
Directors then in office at a meeting duly assembled shall be
necessary to constitute a quorum for the transaction of business.
Except as otherwise provided by law or by the Charter of the
Corporation, the act of a majority of directors present at such
meeting shall be the act of the Board.
Section 7. Resignations. Any director of the
Corporation may resign at any time by giving written notice to the
Board or to the President or to the Secretary of the Corporation.
Such resignation shall take effect at the time specified therein;
and unless otherwise specified therein the acceptance of such
resignation shall not be necessary to make it effective.
Section 8. Removal. Any one or more of the directors
may be removed either with or without cause at any time by a vote
of a majority of the shares issued and outstanding and entitled to
vote. Not less than one-third of the directors may call a special
meeting for the purpose of removing for cause any other director
and at such special meeting so called, such director may be removed
by the affirmative vote of a majority of the remaining directors
present at such meeting. Immediately following each vote by which
a director is removed the Board of Directors shall declare the
office of the removed director to be vacant.
Section 9. Compensation of Directors. Directors may,
by resolution of the Board of Directors, be allowed a fixed sum for
serving as directors and expenses for attendance at regular or
special meetings of the Board of Directors; provided that nothing
herein contained shall be construed to preclude any director from
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PAGE 5
servicing the Corporation in any other capacity and receiving
compensation therefor. Members of special or standing committees,
and others who attend pursuant to direction, may, by vote of the
Board of Directors, be allowed a fixed sum and expenses for
attending committee meetings.
ARTICLE V
COMMITTEES
Section 1. Executive Committee. The Board of
Directors may, by resolution adopted by a majority of the entire
Board, designate an Executive Committee from among its members
consisting of five (5) or more directors as it may, in its
discretion, think proper and shall so designate by resolution.
The Executive Committee shall have and may exercise,
when the Board is not in session, so far as may be permitted by
law, all of the rights and powers of the Board of Directors in the
management of the business and affairs of the Corporation, except
to the extent such powers of the Board are by resolution of the
Board or by these by-laws are reserved to the Board or to other
committees of the Board, and shall have power to authorize the seal
of the Corporation to be affixed to all papers which may require
it; but the Executive Committee shall not have power to fill
vacancies in any committee of the Board, or to make or amend the
By-Laws of the Corporation.
The Board shall have the power at any time to fill
vacancies in, to change the membership of, to change the number of
members of, to designate one or more alternate members of, or to
dissolve, the Executive Committee. The Executive Committee may
make rules for the conduct of its business and may appoint such
committees and assistants as it shall from time to time deem
necessary.
The Committee shall keep a record of its proceedings
and shall adopt its own rules of procedure except that a quorum
shall consist of at least three (3) members, not more than two (2)
of whom may be officers or salaries employees of the Corporation.
The Committee shall submit copies of its minutes to the Board of
Directors.
Section 2. Investment Committee. The investments of
the Corporation shall be managed and controlled by an Investment
Committee. The Investment Committee shall consist of at least five
(5) members who shall be appointed by the Board of Directors from
its own membership at the annual meeting of the Board of Directors
to serve until the next succeeding annual meeting and until their
successors on the Committee have been appointed. The Board shall
have the power at any time to fill vacancies in, to change the
membership of, to change the number of members of, to designate one
or more alternative members of, or to dissolve, the Investment
Committee.
The Investment Committee shall have and may exercise,
when the Board is not in session, all the rights and powers of the
Board of Directors to make, supervise, and control the investments
of the <PAGE>
PAGE 6
Corporation, inclusive of all real and personal property acquired
by the virtue of or incidental to any investment, to sell, assign,
exchange, lease or otherwise dispose of such investments and
property, and to do and perform all things deemed necessary and
proper in relation to such investments and property.
The Committee shall keep a record of its proceedings
and shall adopt its own rules of procedure except that a quorum
shall consist of at least three (3) members not more than two (2)
of whom may be officers or salaries employees of the Corporation.
The Committee shall submit copies of its minutes to the Board of
Directors.
Section 3. Other Committees. The Board of Directors
may from time to time by resolution create such other committee or
committees of Directors, officers, employees or other persons
designated by the Board, to advise the Board, the Executive
Committee and the officers and employees of the Corporation in all
such matters as the Board shall deem advisable, and with such
functions and duties as the Board shall by resolution prescribe. A
majority of all members of any such committee may determine its
action and fix the time and place of its meetings, unless the Board
of Directors shall otherwise provide. The Board of Directors shall
have power to change the members of any such committee at any time,
and to discharge any such committee, either with or without cause
at any time.
ARTICLE VI
OFFICERS
Section 1. Officers. The Board of Directors shall,
immediately after the organization of the Corporation, and
thereafter at their first meeting following the annual election of
directors, shall elect from their number a Chairman of the Board,
and shall also elect a President, Secretary and a Treasurer, who
need not be members of the Board of Directors. The Board may, at
any time, also elect one or more Vice Presidents and such Assistant
Treasurers or Assistant Secretaries, or other officers, as it may
deem proper. More than one office may be held by the same person,
except that the offices of President and Secretary may not be held
by the same person.
Section 2. Term. Each officer of the Corporation
elected by the Board of Directors shall hold office until his
successor is chosen and qualified, or until he shall have died or
resigned or shall have been removed as hereinafter provided. A
vacancy in any office arising from any cause may be filled by the
Board of Directors.
Section 3. Duties of the Chairman of the Board. The
Chairman of the Board shall preside at all meetings of the
shareholders and of the Board of Directors. He shall have such
other powers and perform such other duties as may be assigned to
him by the Board of Directors.
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PAGE 7
Section 4. Duties of the President. The President
shall be the Chief Executive Officer of the Corporation. He shall
have general and active supervision and direction over the business
offices of the Corporation, subject to the control of the Board of
Directors whose policies he shall execute. He shall see that all
orders and resolutions of the Board of Directors are carried into
effect and shall, in the absence of the Chairman of the Board,
preside at all meetings of shareholders and of the Board of
Directors. Except when inconsistent with the Corporation's
Charter, these By-Laws, or with the orders and resolutions of the
Board of Directors, he shall have the power to employ, fix the
duties, and discharge such employees as he may deem necessary and
proper. The President shall make such reports to the Board of
Directors as it may require.
Section 5. Duties of Vice President. Each Vice
President shall undertake such of the duties of the President, or
such other duties, as may be delegated to him from time to time by
the President or by the Board of Directors.
Section 6. Duties of Secretary. The Secretary shall
attend all meetings of the shareholders, of the Board of Directors,
and of the Executive Committee of the Board, and record their
proceedings in a book kept for that purpose. He shall perform
other duties incident to his office and such other duties as may be
delegated to him by the Board of Directors or the President. He
shall see that
proper notice is given to all meetings of the shareholders of the
Corporation and of the Board of Directors, and he shall have charge
of the corporate seal, the minutes books, and such other Corporate
records as are not otherwise provided for. He shall affix the seal
to any instrument requiring the same. Any Assistant Secretary may
perform the duties of the Secretary in his absence and such of the
duties of the Secretary as may be delegated to him by that officer
or by the Board of Directors or the President.
Section 7. Duties of Treasurer. The Treasurer shall
be charged with supervision of the keeping of the funds and books
of account of the Corporation and with their safekeeping shall
carry out such duties as are incident to his office and shall
further perform such other duties as may be delegated to him by the
Board of Directors or by the President. Any Assistant Treasurer
may perform the duties of the Treasurer in his absence, and such of
the duties of the Treasurer as may be delegated to him by that
officer or by the Board of Directors or the President.
Section 8. Removal. Any officer may be removed either
with or without cause at any time by a vote of a majority of the
Directors.
ARTICLE VII
SHARE CERTIFICATES
Section 1. Form of Certificates. The shares of the
Corporation shall be represented by certificates, in such form as
the Board of Directors may from time to time prescribe, signed by
the Chairman of the Board of Directors, the President or a Vice
<PAGE>
PAGE 8
President and the Secretary or an Assistant Secretary or the
Treasurer or an Assistant Treasurer, and sealed with the seal of
the Corporation. Such seal may be a facsimile, engraved or
printed. Where any such certificate is signed by a transfer agent
or transfer clerk and by a registrar, the signatures of any such
Chairman of the Board of Directors, President, Vice President,
Secretary, Assistant Secretary, Treasurer, or Assistant Treasurer
upon such certificates may be facsimiles, engraved or printed. In
case any such officer who has signed or whose facsimile signature
has been placed upon such certificate shall have ceased to be such
before such certificate is issued, it may be issued by the
Corporation with the same effect as if such officer had not ceased
to be such at the date of its issue.
Every certificate representing shares issued by the
Corporation shall plainly state upon the face thereof the number,
kind and class of shares which it represents.
Section 2. Transfers. Transfers of shares shall be
made only upon the books of the Corporation by the registered
holders in person or by power of attorney duly executed and
acknowledged and filed with the Secretary of the Corporation, or
with a duly appointed Transfer Agent acting for and on behalf of
the Secretary, and upon the surrender of the certificate or
certificates for such shares.
Section 3. Lost Certificates. If any certificate of
shares shall be lost, the holder thereof shall forthwith notify the
Corporation of the facts and the Board of Directors or the
Executive Committee may then authorize a new certificate to be
issued to him. The Board of Directors or the Executive Committee
may in its discretion require, as a condition precedent, deposit of
a bond in such amount and in such form and with surety or sureties
as the Board or the said Committee may direct.
Section 4. Closing Share Books. The Board of
Directors or the Executive Committee may by resolution prescribe a
period not less than ten (10) nor more than fifty (50) days prior
to any meeting of shareholders during which no transfer of shares
on the books of the Corporation may be made; or in lieu of
prohibiting the transfer of shares may fix a day and hour not less
than ten (10) nor more than fifty (50) days prior to the folding of
any meeting of shareholders as the time as of which shareholders
entitled to notice of and to vote at such meeting shall be
determined or for the taking of a dividend list. The share books
may also be closed for the payment of dividends for such like
period, if any, as may be prescribed by resolution of the Board of
Directors or the Executive Committee.
Section 5. Transfer Agent and Registrar. The Board
of Directors may appoint one or more transfer clerks or one or more
transfer agents and one or more registrars, and may require all
certificates for shares to bear the signature or signatures of any
of them.
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ARTICLE VIII
INDEMNIFICATION OF CORPORATE PERSONNEL
To the extent permitted and in the manner prescribed by
law, the Corporation shall indemnify any person made, or threatened
to be made, a party to any action, suit or proceeding, civil or
criminal, by reason of the fact that he, his testator or intestate,
is or was Director or Officer of the Corporation or of any other
corporation of any type or kind, domestic or foreign, which he
served in any capacity at the request of the Corporation, against
judgements, fines, amounts paid in settlement and reasonable
expenses (which the Corporation may advance), including attorneys'
fees, actually and necessarily incurred as a result of such action,
suit or proceeding, or any appeal therein.
The foregoing right of indemnification shall not be exclusive of
any other right to which any such person may be entitled. Neither
the adoption of this provision nor any modification or repeal
hereof, or of any provision of any applicable law shall, unless
otherwise required by law, enlarge or diminish any right of
indemnification of a Director or Officer as it existed at the time
of accrual of the alleged cause of action asserted in the
threatened or pending action, suit or proceeding in which the
expenses were incurred or other amount was paid.
INDEMNIFICATION OF OTHER PERSONNEL
The Board, in its discretion, may authorize the Corporation to
indemnify any person, other than a Director or Officer, for
expenses incurred or other amounts paid in any civil or criminal
action, suit or proceeding, to which such person was, or was
threatened to be, made a party by reason of the fact that he, is
testator or intestate, is or was an employee or agent of the
Corporation or of any other corporation of any type or kind,
domestic or foreign, which he served in any capacity at the request
of the Corporation, against judgements, fines, amounts paid in
settlement and reasonable expenses (which the Corporation may
advance), as a result of such action, suit or proceeding, or any
appeal therein.
ARTICLE IX
CONFLICT OF INTERESTS
No director or officer, of the Corporation shall
receive, in addition to his fixed salary of compensation, any money
or valuable things, either directly or indirectly, or through any
substantial interest in any other corporation or business unit, for
negotiating, procuring, recommending or aiding in any purchase or
sale of property, or loan, made by the Corporation or any affiliate
or subsidiary thereof; nor shall he be pecuniarily interested,
either as principal, co-principal, agent or beneficiary, either
directly or indirectly, or through any substantial interest in any
other corporation or business unit, in any such purchase, sale or
loan.
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PAGE 10
ARTICLE X
AMENDMENTS
Section 1. Power to Amend. These By-Laws may be
altered, repealed, or amended in whole or in part by the Board of
Directors at any regular meeting of the Board of Directors, or at a
special meeting called for that purpose, provided that notice of
the proposed change is incorporated in the notice of such special
meeting.
Section 2. Notice to Shareholders. If any By-Law
regulating an impending election of directors is adopted, amended
or repealed by the Board of Directors, there shall be set forth in
the notice of the next meeting of shareholders for the election of
directors the By-Law so adopted, amended or repealed, together with
a concise statement of the changes made.
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PAGE 1
Performance Calculations
NON-MONEY MARKET SUBACCOUNTS
TOTAL RETURN
The total return is the percentage change between the initial
investment at the beginning of the period and the total value of
the investment at the end of the period.
Total Return = Ending Total Value - Initial Investment
Initial Investment
The ending total value includes income and capital gains
distributions treated as reinvested. It also reflects deductions
for the contract administrative charge, variable account
administrative charge and the mortality and expense risk charge.
AVERAGE ANNUAL TOTAL RETURN
The average annual total return of a subaccount reflects the
average annual compounded rate of return of a hypothetical
investment over a period of one, five and ten years (or, if less,
up to the life of the subaccount), calculated according to the
following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1000.
T = average annual total return.
n = number of years.
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of the one, five
or ten year periods (or fractional portion
thereof).
The average annual total return without withdrawal charge reflects
the deduction of the contract administrative charge, variable
account administrative charge and mortality and expense risk
charge.
The average annual total return with withdrawal charge reflects the
above deductions and assumes the contract owner withdraws the
entire contract at the end of the one, five and ten year periods.
YIELD
Yield quotations will be based on all investment income earned
during a particular 30-day period, less expenses accrued during the
period (net investment income) and will be computed by dividing net
investment income per share by the value of a share on the last day
of the period, according to the following formula:
YIELD = 2 [( a - b + 1)6 - 1]
cd
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PAGE 2
a = dividends and interest earned during the period.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of shares outstanding during the
period that were entitled to receive dividends.
d = the maximum offering price per share on the last day of
the period.
MONEY MARKET SUBACCOUNT
YIELD
Simple yield for the money market subaccount will be based on the
net change in the value of a hypothetical investment (exclusive of
capital changes) from the beginning of a seven day period for which
the return will be quoted. A prorata share of fund expenses
accrued over the seven day period is subtracted. The difference is
divided by the value of the subaccount at the beginning of the
period to obtain the base period return. The base period return is
annualized by multiplying by 365/7.
COMPOUND YIELD
Calculation of compound yield begins with the same base period
return used in the calculation of yield, which is then annualized
to reflect compounding according to the following formula:
Compound Yield = [(Base Period Return + 1)365/7] - 1
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<PAGE>
IDS LIFE INSURANCE COMPANY OF NEW YORK
IDS Life of New York Flexible Portfolio Annuity Account
POWER OF ATTORNEY
City of Albany
State of New York
Each of the undersigned, as a director of IDS Life Insurance
Company of New York (IDS Life of New York), sponsor of the unit
investment trust consisting of the IDS Life of New York Flexible
Portfolio Annuity Account in connection with the filing of a
registration statement on Form N-4 under the Securities Act of 1933
and the Investment Company Act of 1940, hereby constitutes and
appoints William A. Stoltzmann, Mary Ellyn Minenko, Eileen J.
Newhouse and Timothy S. Meehan or any one of them, as his/her
attorney-in-fact and agent, to sign for him/her in his/her name,
place and stead any and all filings, applications (including
applications for exemptive relief), periodic reports, registration
statements (with all exhibits and other documents required or
desirable in connection therewith), other documents, and amendments
thereto and to file such filings, applications periodic reports,
registration statements, other documents, and amendments thereto
with the Securities and Exchange Commission, and any necessary
states, and grants to any or all of them the full power and
authority to do and perform each and every act required or
necessary in connection therewith.
/s/ John C. Boeder /s/ Michael P. Monaco
John C. Boeder Michael P. Monaco
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
/s/ Charles A. Cuccinello /s/ Louise M. Parent
Charles A. Cuccinello Louise M. Parent
/s/ Milton R. Fenster /s/ Carl N. Platou
Milton R. Fenster Carl N. Platou
/s/ Robert A. Hatton /s/ Gordon H. Ritz
Robert A. Hatton Gordon H. Ritz
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Edward Landes
Edward Landes
Dated: ____________________
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