As filed with the Securities and Exchange Registration No. 33-75988*
Commission on October 30, 1997 Registration No. 811-2513
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
- --------------------------------------------------------------------------------
Post-Effective Amendment No. 10 To
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
and Amendment to
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
- --------------------------------------------------------------------------------
Variable Annuity Account C of Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
Depositor's Telephone Number, including Area Code: (860) 273-4686
Julie E. Rockmore, Counsel
Aetna Life Insurance and Annuity Company
151 Farmington Avenue, RE4A, Hartford, Connecticut 06156
(Name and Address of Agent for Service)
- --------------------------------------------------------------------------------
It is proposed that this filing will become effective:
60 days after filing pursuant to paragraph (a)(1) of Rule 485
--------
X on December 31, 1997 pursuant to paragraph (a)(1) of Rule 485
--------
*Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which includes
all the information which would currently be required in prospectuses relating
to the securities covered by the following earlier Registration Statements:
33-75972; 33-76024; and 33-89858.
<PAGE>
VARIABLE ANNUITY ACCOUNT C
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
LOCATION - PROSPECTUS DATED
MAY 1, 1997 AND AS AMENDED BY
FORM N-4 SUPPLEMENTS DATED AUGUST 21,
ITEM NO. PART A (PROSPECTUS) 1997 AND DECEMBER 31, 1997
<S> <C> <C>
Cover Page.................................. Cover Page, and as amended
2 Definitions................................. Definitions
3 Synopsis.................................... Prospectus Summary, and as amended;
Fee Table, and as amended
4 Condensed Financial Information............. Condensed Financial Information
5 General Description of Registrant,
Depositor, and Portfolio Companies........... The Company; Variable Annuity
Account C; The Funds, and as amended
6 Deductions and Expenses..................... Charges and Deductions, and as
amended; Distribution
7 General Description of Variable Annuity
Contracts................................... Purchase, and as amended;
Miscellaneous
8 Annuity Period.............................. Annuity Period, and as amended
9 Death Benefit............................... Death Benefit During Accumulation
Period; Death Benefit Payable During the
Annuity Period
10 Purchases and Contract Value................ Purchase, and as amended; Contract Valuation
11 Redemptions................................. Right to Cancel; Withdrawals, and as amended
12 Taxes....................................... Tax Status, and as amended
13 Legal Proceedings........................... Miscellaneous - Legal Matters and
Proceedings
14 Table of Contents of the Statement of
Additional Information...................... Contents of the Statement of Additional
Information
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LOCATION - STATEMENT OF
FORM N-4 PART B (STATEMENT OF ADDITIONAL ADDITIONAL INFORMATION
ITEM NO INFORMATION) DATED MAY 1, 1997
<S> <C> <C>
15 Cover Page................................. Cover page
16 Table of Contents.......................... Table of Contents
17 General Information and History............ General Information and History
18 Services................................... General Information and History;
Independent Auditors
19 Purchase of Securities Being Offered....... Offering and Purchase of
Contracts
20 Underwriters............................... Offering and Purchase of
Contracts
21 Calculation of Performance Data............ Performance Data; Average
Annual Total Return Quotations
22 Annuity Payments........................... Annuity Payments
23 Financial Statements....................... Financial Statements
Part C (Other Information)
Information required to be included in Part C is set forth under the appropriate
item, so numbered, in Part C to this Registration Statement.
</TABLE>
<PAGE>
PARTS A AND B
The Prospectus and Statement of Additional Information are incorporated into
Part A and Part B of this Post-Effective Amendment No. 10, respectively, by
reference to Post-Effective Amendment No. 8 to the Registration Statement on
Form N-4 (File No. 33-75988), as filed electronically on April 17, 1997
(Accession No. 0000950146-97-000622) and by reference to a Supplement to the
Prospectus dated August 21, 1997, as contained in Post-Effective Amendment No. 9
to the Registration Statement (File No. 33-75988), as filed electronically on
August 18, 1997 (Accession No. 0000950146-97-001293) and by reference to a
Supplement to the Prospectus dated December 31, 1997 which is included in this
filing.
<PAGE>
Aetna Life Insurance and Annuity Company
Variable Annuity Account C
Individual Deferred Variable Annuity Contracts for
Individual Retirement Annuities (Section 408(b))
and Simplified Employee Pension Plans (Section 408(k))
Supplement dated December 31, 1997 to
Prospectus Dated May 1, 1997 as amended on August 21, 1997
The Prospectus dated May 1, 1997 and amended on August 21, 1997, is amended as
follows:
Fee Table--1 and Prospectus, pages 5-6
The Fee Table on page FEE TABLE-1 and the section entitled "CHARGES AND
DEDUCTIONS--Deferred Sales Charge" on pages 5-6 are amended by replacing the
descriptions of the applicability of Schedule A and Schedule C under "Deferred
Sales Charge" with the following:
SCHEDULE A applies to 1994 Internal Rollover Contracts established with amounts
that were transferred or rolled over from the Company's MAP or ADAPTOR
contracts (other than MAP contracts under Variable Annuity Account C), and
Aetna Life Insurance Company contracts and Company general account contracts
issued in connection with Code Section 401 and 403 qualified plans. It also
applies to previously-issued 1992 Internal Rollover Contracts established with
amounts transferred from certain contracts issued by the Company under certain
pension or profit sharing retirement plans only where you were not subject to a
deferred sales charge under the prior contract at the time of transfer. The
deferred sales charge is based on the number of completed Contract Years since
the date of initial payment to the new Contract.
SCHEDULE C applies to 1994 Internal Rollover Contracts established with amounts
that were transferred from contracts issued by the Company other than those
contracts described above under Schedule A. For Contracts issued prior to
December 31, 1997, the Contract Holder enters the deferred sales charge
schedule at the percentage point corresponding to the deferred sales charge
applicable under the predecessor contract at the time of the exchange, and
continues from that point in the Schedule. For Contracts issued on and after
December 31, 1997, subject to state regulatory approval, the deferred sales
charge is based on the number of completed Contract Years since the date of
initial payment to the predecessor contract. Schedule C also applies to all new
purchases that are not connected with an internal transfer (e.g., external
rollovers or Contracts established with at least a $1,000 annual Purchase
Payment), and to internal rollovers from certain variable life insurance
contracts funding Code Section 401 qualified plans.
The Date of this Supplement is December 31, 1997
X75988-97-1
<PAGE>
Prospectus Page 5
The section entitled "MAINTENANCE FEE" under "CHARGES AND
DEDUCTIONS" is replaced with the following:
MAINTENANCE FEE
During the Accumulation Period, the Company will deduct an annual maintenance
fee from the Contract Value. The maintenance fee is to reimburse the Company
for some of its administrative expenses relating to the establishment and
maintenance of the Contracts.
The maintenance fee under the Contract is $25. The maintenance fee is
determined annually based on the Contract Value on the last day of the Contract
Year. For 1994 Contracts, if the Contract Value is $10,000 or greater on the
date that the maintenance fee is deducted, the annual maintenance fee is zero.
For 1992 Contracts, if the initial Purchase Payment is $10,000 or greater, or,
subject to state regulatory approval, if the Contract Value is $10,000 or
greater on the date that the maintenance fee is deducted, the annual
maintenance fee is zero. The maintenance fee will be deducted on a pro rata
basis from each Subaccount or Credited Interest Option in which you have an
interest.
Prospectus Pages 12-13
The section entitled "Taxation of Distributions" under "TAX STATUS" is replaced
with the following:
Taxation of Distributions. All distributions will be taxed as ordinary income
unless nondeductible contributions were made to the IRA or the distribution is
"rolled over" to another retirement plan in accordance with the terms of the
Code. Distributions are generally subject to withholding for the recipient's
federal income tax liability at rates that vary according to the type of
distribution and the recipient's tax status. Recipients generally are provided
the opportunity to elect not to have tax withheld from distributions.
In general, payments received by your Beneficiaries after your death are taxed
in the same manner as if you have received those payments, except that a
limited death benefit exclusion may apply for payments due to deaths occurring
on or before August 20, 1996. This exclusion no longer applies to payments due
to deaths occurring after August 20, 1996.
The Code imposes a 10% penalty tax on the taxable portion of any distribution
from an IRA or Roth IRA unless (a) you have attained age 59-1/2, (b) you have
died, (c) you have become disabled as defined in the Code, (d) the distribution
amount is rolled over in accordance with the terms of the Code, (e) it is paid
in a series of substantially equal periodic payments (at least annually) over
your life or life expectancy or the joint lives or joint life expectancies of
you and a designated Beneficiary, (f) the distribution equals unreimbursed
medical expenses that qualify for a deduction as specified in the Code, or (g)
it is a qualified rollover from an IRA to a Roth IRA. In addition, for
distributions in tax years beginning after December 31, 1997, the penalty tax
does not apply to distributions made for higher education expenses or to a
qualified first-time homebuyer, both as further described in the Code.
This Contract has been approved by the IRS as a prototype IRA. The IRS
approval, however, only pertains to whether the Contract meets the Code
requirements for IRAs and is not a determination of the merits of the Contract.
Summary--1 and Prospectus, Pages 4, 8, 9, 10, 12
The "Prospectus Summary" and the sections listed below are amended to include
description of a 1994 Contract offered as an Individual Retirement Annuity
under Section 408A of the Code ("Roth IRA"). Subject to state regulatory
approval, Roth IRA Contracts will be available on and after January 1, 1998.
PURCHASE
A Roth IRA Contract is a special form of IRA which can accept nondeductible
annual contributions. Contributions to a Simplified Employee Pension Plan
("SEP") are not permitted. The Contract can also accept transfers and
rollovers, but only from an Individual Retirement Annuity/Individual Retirement
Account, subject to ordinary income tax, or from another Roth IRA.
WITHDRAWALS
Roth IRAs provide for a tax-free withdrawal of all assets in the Contract, both
contributions and earnings, provided the withdrawal is not made within the
5-taxable year period beginning with the first tax year for which a
contribution was made, or the distribution is made after attainment of age
59-1/2, or on account of death or disability, or for a qualified first-time
home purchase.
<PAGE>
ADDITIONAL WITHDRAWAL OPTIONS
ECO--Estate Conservation Option is not available under the Roth IRA Contract.
ANNUITY PERIOD
For Roth IRAs, the minimum distribution rules do not apply prior to your death.
You are not required to begin taking minimum annual distributions by April 1 of
the calendar year following the calendar year you attain age 70-1/2. The
general rule that Annuity payments may not extend beyond your life/life
expectancy or beyond the joint lives/joint life expectancies of you and your
Beneficiary does not apply to a Roth IRA. The minimum distribution rules which
apply to the Beneficiary at your death and which are described in the
prospectus continue to apply.
TAX STATUS
Section 408A of the Code permits eligible individuals to contribute to a Roth
IRA on an after-tax (nondeductible) basis.
Distributions from other types of qualified plans are not permitted to be
transferred or rolled over to a Roth IRA. A Roth IRA can accept
transfers/rollovers only from an IRA, subject to ordinary income tax, or from
another Roth IRA.
Any "qualified" distribution from a Roth IRA is not includible in gross income.
A "qualified" distribution is any distribution made after you have attained age
59-1/2, or on account of your death or disability, or for a qualified first-
time home purchase. A distribution will not be treated as "qualified" if it is
made within the 5-taxable year period beginning with the first taxable year for
which a contribution was made. If a distribution is not "qualified", the
accumulated earnings are includible in income.
The 10% premature distribution penalty will apply to the taxable portion of the
distribution unless one of the exceptions under the Code applies (see the
Supplement section entitled, "Taxation of Distributions"). A partial
distribution will first be treated as a return of cost basis (i.e. aggregate
amount of contributions).
X75988-97-1
<PAGE>
VARIABLE ANNUITY ACCOUNT C
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
(1) Included in Part A:
Condensed Financial Information
(2) Included in Part B:
Financial Statements of Variable Annuity Account C:
- Statement of Assets and Liabilities as of December 31, 1996
- Statements of Operations and Changes in Net Assets for the
years ended December 31, 1996 and 1995
- Notes to Financial Statements
- Independent Auditors' Report
Financial Statements of the Depositor:
- Independent Auditors' Report
- Consolidated Statements of Income for the years ended
December 31, 1996, 1995 and 1994
- Consolidated Balance Sheets as of December 31, 1996 and 1995
- Consolidated Statements of Changes in Shareholder's Equity for
the years ended December 31, 1996, 1995 and 1994
- Consolidated Statements of Cash Flows for the years ended
December 31, 1996, 1995 and 1994
- Notes to Consolidated Financial Statements
(b) Exhibits
(1) Resolution of the Board of Directors of Aetna Life Insurance and
Annuity Company establishing Variable Annuity Account C(1)
(2) Not applicable
(3.1) Broker-Dealer Agreement(2)
(3.2 Alternative Form of Wholesaling Agreement and Related Selling
Agreement(2)
(4.1) Variable Annuity Contracts (IRA-CDA-IC) and (IP-CDA-IB)(3)
(4.2) Endorsements (EIRA-SDOIC-97 and EIRA-SDOIC-97(NY))
to Variable Annuity Contract IRA-CDA-IC(4)
(4.3) Endorsement (EIP-SDOIB-97) to Variable Annuity Contract
IP-CDA-IB(4)
(4.4) Endorsement (EIRA-Roth-97) to Contract IRA-CDA-IC
(4.5) Endorsement (EIP-MFIB-97) to Contract IP-CDA-IB
(4.6) Schedule A (IROA-97) to Contract IRA-CDA-IC
(4.7) Schedule C (IROPIRA-97) to Contract IRA-CDA-IC
(5.1) Variable Annuity Contract Application (304.00.1A)
(5.2) Variable Annuity Contract Application (703.00.1A)(5)
(6.1) Certification of Incorporation of Aetna Life Insurance and
Annuity Company(6)
(6.2) Amendment of Certificate of Incorporation of Aetna Life
Insurance and Annuity Company(7)
(6.3) By-Laws, as amended September 17, 1997, of Aetna Life Insurance
and Annuity Company(8)
<PAGE>
(7) Not applicable
(8.1) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1995, May 1, 1995, January 1,
1996 and March 1, 1996(7)
(8.2) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund and Fidelity
Distributors Corporation dated February 1, 1994 and amended on
December 15, 1994, February 1, 1996, May 1, 1995, January 1,
1996 and March 1, 1996(9)
(8.3) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1995, May 1, 1995,
January 1, 1996 and March 1,1996(7)
(8.4) Fifth Amendment, dated as of May 1, 1997, to the Fund
Participation Agreement between Aetna Life Insurance and
Annuity Company, Variable Insurance Products Fund II and
Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1996, May 1, 1995,
January 1, 1996 and March 1, 1996(9)
(8.5) Service Agreement between Aetna Life Insurance and Annuity
Company and Fidelity Investments Institutional Operations
Company dated as of November 1, 1995(10)
(8.6) Amendment dated January 1, 1997 to Service Agreement between
Aetna Life Insurance and Annuity Company and Fidelity
Investments Institutional Operations Company dated as of
November 1, 1995(9)
(8.7) Fund Participation Agreement between Aetna Life Insurance and
Annuity Company and Janus Aspen Series dated April 19, 1994
and amended June 15, 1994, July 31, 1995 and March 1, 1996(9)
(9) Opinion and Consent of Counsel
(10) Consent of Independent Auditors
(11) Not applicable
(12) Not applicable
(13) Schedule for Computation of Performance Data(11)
(14) Not applicable
(15.1) Powers of Attorney(9)
(15.2) Authorization for Signatures(2)
(27) Financial Data Schedule
1. Incorporated by reference to Post-Effective Amendment No. 6 to
Registration Statement on Form N-4 (File No. 33-75986), as filed
electronically on April 22, 1996 (Accession No. 0000950146-96-000563).
<PAGE>
2. Incorporated by reference to Post-Effective Amendment No. 5 to
Registration Statement on Form N-4 (File No. 33-75986), as filed
electronically on April 12, 1996 (Accession No. 0000912057-96-006383).
3. Incorporated by reference to Post-Effective Amendment No. 4 to
Registration Statement on Form N-4 (File No. 33-75988), as filed
electronically on April 15, 1996 (Accession No. 0000912057-96-006419).
4. Incorporated by reference to Post-Effective Amendment No. 8 to
Registration Statement on Form N-4 (File No. 33-75988), as filed
electronically on April 17, 1997 (Accession No. 0000950146-97-000622).
5. Incorporated by reference to Post-Effective Amendment No. 9 to
Registration Statement on Form N-4 (File No. 33-75988), as filed
electronically on August 18, 1997 (Accession No. 0000950146-97-001293).
6. Incorporated by reference to Post-Effective Amendment No. 1 to
Registration Statement on Form S-1 (File No. 33-60477), as filed
electronically on April 15, 1996 (Accession No. 0000950146-96-000534).
7. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-75964), as filed
electronically on February 11, 1997 (Accession No. 0000950146-96-000159).
8. Incorporated by reference to Post-Effective Amendment No. 12 to
Registration Statement on Form N-4 (File No. 33-91846), as filed
electronically on October 30, 1997 (Accession No. 0000950146-97-001589).
9. Incorporated by reference to Post-Effective Amendment No. 30 to
Registration Statement on Form N-4 (File No. 33-34370), as filed
electronically on September 29, 1997 (Accession No. 0000950146-97-001485).
10. Incorporated by reference to Post-Effective Amendment No. 3 to
Registration Statement on Form N-4 (File No. 33-88720), as filed
electronically on June 28, 1996 (Accession No. 0000928389-96-000136).
11. Incorporated by reference to Post-Effective Amendment No. 4 to
Registration Statement on Form N-4 (File No. 33-75964), as filed on April
28, 1995.
<PAGE>
Item 25. Directors and Officers of the Depositor
Name and Principal
Business Address* Positions and Offices with Depositor
Thomas J. McInerney Director and President
Timothy A. Holt Director, Senior Vice President and Chief
Financial Officer
Christopher J. Burns Director and Senior Vice President
J. Scott Fox Director and Senior Vice President
John Y. Kim Director and Senior Vice President
Shaun P. Mathews Director and Senior Vice President
Glen Salow Director and Vice President
Deborah Koltenuk Vice President and Treasurer, Corporate Controller
Frederick D. Kelsven Vice President and Chief Compliance Officer
Kirk P. Wickman Vice President, General Counsel and
Corporate Secretary
* The principal business address of all directors and officers listed is 151
Farmington Avenue, Hartford, Connecticut 06156.
Item 26. Persons Controlled by or Under Common Control with the Depositor
or Registrant
Incorporated herein by reference to Item 26 of Post-Effective Amendment No.
12 to the Registration Statement on Form N-4 (File No. 33-91846), as filed
electronically on October 30, 1997 (Accession No. 0000950146-97-001589)
Item 27. Number of Contract Owners
As of September 30, 1997, there were 623,598 individuals holding interests
in variable annuity contracts funded through Variable Annuity Account C.
<PAGE>
Item 28. Indemnification
Reference is hereby made to Section 33-771(f) of the Connecticut General
Statutes ("C.G.S.") regarding indemnification of directors and Section 33-776(4)
regarding indemnification of officers, employees and agents of Connecticut
corporations. These statutes provide in general that Connecticut corporations
incorporated prior to January 1, 1997 shall indemnify their officers, directors,
employees and agents against "liability" (defined as the obligation to pay a
judgment, settlement, penalty, fine, excise tax in the case of an employee
benefit plan or reasonable expenses incurred with respect to a proceeding). In
the case of a proceeding by or in the right of the corporation, indemnification
is limited to reasonable expenses incurred in connection with the proceeding
against the corporation to which the individual was named a party. The
corporation's obligation to provide such indemnification does not apply unless
(1) the individual has met the standard of conduct set forth in Section 33-771;
and (2) a determination is made (by majority vote of a quorum of the board of
directors who were not parties to the proceeding, or if a quorum cannot be
obtained, by a committee of the board selected as described in Section
33-775(b)(2); by special legal counsel selected by the board of directors or
members thereof as described in Section 33-775(b)(3); by shareholders) that the
individual met the standard set forth in Section 33-771; or (3) the court, upon
application by the individual, determines in view of all the circumstances that
such person is reasonably entitled to be indemnified. Also, unless limited by
its Certificate of Incorporation, a corporation must indemnify an individual who
was wholly successful on the merits or otherwise against reasonable expenses
incurred by him in connection with a proceeding to which he was a party because
of his relationship as director, officer, employee or agent of the corporation.
The statute does specifically authorize a corporation to procure indemnification
insurance on behalf of an individual who is or was a director, officer, employer
or agent of the corporation. Consistent with the statute, Aetna Inc. has
procured insurance from Lloyd's of London and several major United States excess
insurers for its directors and officers and the directors and officers of its
subsidiaries, including the Depositor.
Item 29. Principal Underwriter
(a) In addition to serving as the principal underwriter and depositor for
the Registrant, Aetna Life Insurance and Annuity Company (Aetna) also
acts as the investment adviser, only, for Aetna Series Fund, Inc., and
the principal underwriter and investment adviser for Portfolio
Partners, Inc., Aetna Variable Encore Fund, Aetna Variable Fund, Aetna
Generation Portfolios, Inc., Aetna Income Shares, Aetna Investment
Advisers Fund, Inc., Aetna GET Fund, and Aetna Variable Portfolios,
Inc. (all management investment companies registered under the
Investment Company Act of 1940 (1940 Act)). Additionally, Aetna acts as
the principal underwriter and depositor for Variable Life Account B of
Aetna, Variable Annuity Account B of Aetna and Variable Annuity Account
G of Aetna (separate accounts of Aetna registered as unit investment
trusts under the 1940 Act). Aetna is also the principal underwriter for
Variable Annuity Account I of Aetna Insurance Company of America (AICA)
(a separate account of AICA registered as a unit investment trust under
the 1940 Act).
<PAGE>
(b) See Item 25 regarding the Depositor.
(c) Compensation as of December 31, 1996:
(1) (2) (3) (4) (5)
Name of Net Underwriting Compensation on
Principal Discounts and Redemption or Brokerage
Underwriter Commissions Annuitization Commissions Compensation*
Aetna Life $1,325,661 $96,924,599
Insurance and
Annuity
Company
* Compensation shown in column 5 includes deductions for mortality and
expense risk guarantees and contract charges assessed to cover costs
incurred in the sales and administration of the contracts issued under
Variable Annuity Account C.
Item 30. Location of Accounts and Records
All accounts, books and other documents required to be maintained by
Section 31(a) of the 1940 Act and the rules under it relating to the securities
described in and issued under this Registration Statement are located at the
home office of the Depositor as follows:
Aetna Life Insurance and Annuity Company
151 Farmington Avenue
Hartford, Connecticut 06156
Item 31. Management Services
Not applicable
Item 32. Undertakings
Registrant hereby undertakes:
(a) to file a post-effective amendment to this registration statement on
Form N-4 as frequently as is necessary to ensure that the audited
financial statements in the registration statement are never more than
sixteen months old for as long as payments under the variable annuity
contracts may be accepted;
<PAGE>
(b) to include as part of any application to purchase a contract offered by
a prospectus which is part of this registration statement on Form N-4,
a space that an applicant can check to request a Statement of
Additional Information; and
(c) to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly
upon written or oral request.
(d) Insofar as indemnification for liability arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or
otherwise, the Registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against
public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities
(other than the payment by the Registrant of expenses incurred or paid
by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the
securities being registered, the Registrant will, unless in the opinion
of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question of 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.
(e) Aetna Life Insurance and Annuity Company represents that the fees and
charges deducted under the contracts covered by this registration
statement, in the aggregate, are reasonable in relation to the services
rendered, the expenses expected to be incurred, and the risks assumed
by the insurance company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Variable Annuity Account C of Aetna Life Insurance and
Annuity Company, has caused this Post-Effective Amendment to its Registration
Statement on Form N-4 (File No. 33-75988) to be signed on its behalf by the
undersigned, thereunto duly authorized, in the City of Hartford, State of
Connecticut, on the 30 day of October, 1997.
VARIABLE ANNUITY ACCOUNT C OF AETNA
LIFE INSURANCE AND ANNUITY COMPANY
(Registrant)
By: AETNA LIFE INSURANCE AND ANNUITY
COMPANY
(Depositor)
By: Thomas J. McInerney*
-------------------------------
Thomas J. McInerney
President
As required by the Securities Act of 1933, this Post-Effective Amendment
No. 10 to the Registration Statement has been signed by the following persons in
the capacities and on the dates indicated.
Signature Title Date
Thomas J. McInerney* Director and President )
- ---------------------------- (principal executive officer) )
Thomas J. McInerney )
)
)
Timothy A. Holt* Director, Senior Vice President ) October
- ---------------------------- and Chief Financial Officer )
Timothy A. Holt ) 30, 1997
)
)
Christopher J. Burns* Director )
- ---------------------------- )
Christopher J. Burns )
)
)
J. Scott Fox* Director )
- ---------------------------- )
J. Scott Fox )
)
)
John Y. Kim* Director )
- ---------------------------- )
John Y. Kim )
<PAGE>
Shaun P. Mathews* Director )
- ---------------------------- )
Shaun P. Mathews )
)
Glen Salow* Director )
- ---------------------------- )
Glen Salow )
)
Deborah Koltenuk* Vice President and Treasurer, )
- ---------------------------- Corporate Controller )
Deborah Koltenuk )
By: /s/ Julie E. Rockmore
---------------------------------
Julie E. Rockmore
*Attorney-in-Fact
<PAGE>
VARIABLE ANNUITY ACCOUNT C
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
<S> <C> <C>
99-B.1 Resolution of the Board of Directors of Aetna Life Insurance and *
Annuity Company establishing Variable Annuity Account C
99-B.3.1 Broker-Dealer Agreement *
99-B.3.2 Alternative Form of Wholesaling Agreement and Related Selling *
Agreement
99-B.4.1 Variable Annuity Contracts (IRA-CDA-IC) and (IP-CDA-IB) *
99-B.4.2 Endorsements (EIRA-SDOIC-97 and EIRA-SDOIC-97(NY)) to Variable *
Annuity Contract IRA-CDA-IC
99-B.4.3 Endorsement (EIP-SDOIB-97) to Variable Annuity Contract *
IP-CDA-IB
99-B.4.4 Endorsement (EIRA-Roth-97) to Contract IRA-CDA-IC ----------------
99-B.4.5 Endorsement (EIP-MFIB-97) to Contract IP-CDA-IB ----------------
99-B.4.6 Schedule A (IROA-97) to Contract IRA-CDA-IC ----------------
99-B.4.7 Schedule C (IROPIRA-97) to Contract IRA-CDA-IC ----------------
99-B.5.1 Variable Annuity Contract Application (304.00.1A) ----------------
99-B.5.2 Variable Annuity Contract Application (703.00.1A) *
99-B.6.1 Certification of Incorporation of Aetna Life Insurance and *
Annuity Company
99-B.6.2 Amendment of Certificate of Incorporation of Aetna Life Insurance *
and Annuity Company
99-B.6.3 By-Laws, as amended September 17, 1997, of Aetna Life Insurance *
and Annuity Company
99-B.8.1 Fund Participation Agreement between Aetna Life Insurance *
and Annuity Company, Variable Insurance Products Fund
and Fidelity Distributors Corporation dated February 1,
1994 and amended on December 15, 1994, February 1, 1995,
May 1, 1995, January 1, 1996 and March 1, 1996
*Incorporated by reference
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit No. Exhibit Page
<S> <C> <C>
99-B.8.2 Fifth Amendment, dated as of May 1, 1997, to the Fund Participation Agreement *
between Aetna Life Insurance and Annuity Company, Variable Insurance Products
Fund and Fidelity Distributors Corporation dated February 1, 1994 and amended
on December 15, 1994, February 1, 1996, May 1, 1995, January 1, 1996 and
March 1, 1996
99-B.8.3 Fund Participation Agreement between Aetna Life Insurance and Annuity Company, *
Variable Insurance Products Fund II and Fidelity Distributors Corporation
dated February 1, 1994 and amended on December 15, 1994, February 1,
1995, May 1, 1995, January 1, 1996 and March 1,1996
99-B.8.4 Fifth Amendment, dated as of May 1, 1997, to the Fund Participation Agreement *
between Aetna Life Insurance and Annuity Company, Variable Insurance Products
Fund II and Fidelity Distributors Corporation dated February 1, 1994 and
amended on December 15, 1994, February 1, 1996, May 1, 1995, January 1, 1996
and March 1, 1996
99-B.8.5 Service Agreement between Aetna Life Insurance and Annuity Company and *
Fidelity Investments Institutional Operations Company dated as of November 1,
1995
99-B.8.6 Amendment dated January 1, 1997 to Service Agreement between Aetna Life *
Insurance and Annuity Company and Fidelity Investments Institutional
Operations Company dated as of November 1, 1995
99-B.8.7 Fund Participation Agreement between Aetna Life Insurance and Annuity Company *
and Janus Aspen Series dated April 19, 1994 and amended June 15, 1994, July
31, 1995 and March 1, 1996
99-B.9 Opinion and Consent of Counsel
----------------
99-B.10 Consent of Independent Auditors
----------------
99-B.13 Schedule for Computation of Performance Data *
*Incorporated by reference
<PAGE>
Exhibit No. Exhibit Page
99-B.15.1 Powers of Attorney *
99-B.15.2 Authorization for Signatures *
27 Financial Data Schedule
----------------
*Incorporated by reference
</TABLE>
Aetna Life Insurance and Annuity Company
Code Section 408A "Roth IRA" Endorsement
This Endorsement is used to enable this Contract to meet the qualification
requirements for a Roth Individual Retirement Annuity under Code Section 408A.
The following provisions amend the terms of the Contract, and the terms of the
Endorsement shall prevail in case of a conflict with the terms of the Contract.
1. Section 1.17, Purchase Payment(s), is deleted in its entirety and
restated as follows:
Payments(s) made to Aetna. Purchase Payments must be in cash and, except
for rollover contributions as permitted by Code Section 408A(e), the
total of such contributions cannot exceed $2,000 for any individual for
any taxable year. Aetna will maintain an asset account for crediting IRA
contributions as described in Code Section 408A.
Contributions that exceed limitations may either be refunded to the
Contract Holder or applied to the following calendar year's contribution,
as permitted by the Code. Aetna assumes no responsibility for tax
consequences that may result from excess contributions that are not
refunded to the Contract Holder.
2. Section 3.14, Surrender Value, is deleted in its entirety and restated as
follows:
Aetna will reduce the amount payable upon surrender of any portion of the
Current Value by a Surrender Fee. The Surrender Fee will be in accordance
with the Surrender Fee table in the Contract Schedule.
The Fee on a total surrender of the Contract will not exceed 8.5% of the
actual Purchase Payment(s) made to the Contract.
Aetna is required by law to report any surrender to the Internal Revenue
Service. Surrenders are reported as fully taxable to the Contract Holder,
unless they are considered qualified distributions within the meaning of
Code Section 408A(d)(2), in which case they shall be reported as
non-taxable.
The Contract Holder or Beneficiary must notify Aetna in writing when a
lump sum payment or Annuity payments are to commence.
If the Contract Holder or Beneficiary does not request commencement of
benefits as described above, Aetna will not be responsible for compliance
with the Code Section 401(a)(9) minimum distribution requirements and for
any adverse tax consequences that may result.
3. Section 3.17, Required Distribution to Contract Holder, is deleted in its
entirety and restated as follows:
(a) General Requirement: The distribution of the Contract Holder's
Current Value shall be made in accordance with Code Section
408(b)(3), except that the rules of the Code Section 401(a)(9)(A) and
the incidental death benefit requirements of Code Section 401(a)
shall not apply.
EIRA-Roth-97
<PAGE>
(b) Minimum Death Benefits: If the Contract Holder dies before
his or her entire Current Value is distributed, the entire remaining
balance will be distributed as follows:
(1) If the Contract Holder dies on or after the date
distributions have begun, the entire remaining
balance must be distributed at least as rapidly as
under the method of distribution being used as of the
date of the Contract Holder's death.
(2) If the Contract Holder dies before distributions have
begun, the entire remaining balance must be
distributed as elected by the Contract Holder or, if
the Contract Holder has not so elected, as elected by
the Beneficiary or Beneficiaries, as follows:
(i) by December 31st of the year containing the fifth
anniversary of the Contract Holder's death; or
(ii) in equal or substantially equal payments over
the life or life expectancy of the designated
Beneficiary or Beneficiaries by December 31st
of the year following the year of the Contract
Holder's death. If, however, the Beneficiary is
the Contract Holder's surviving spouse, then
this distribution is not required to begin
before December 31st of the year in which the
Contract Holder would have turned 70 1/2.
(c) Life Expectancies: Unless an Annuity Option has been elected by the
surviving spouse where the Contract Holder dies before distributions
have commenced, or unless a systematic distribution option has been
elected by the Contract Holder, life expectancies of the Contract
Holder or spouse Beneficiary shall be recalculated annually for
purposes of distributions under paragraph (b) above. An election not
to recalculate shall be irrevocable and shall apply to all subsequent
years. The life expectancy of a non-spouse Beneficiary shall not be
recalculated. Life expectancy is computed by use of the expected
return multiples in Tables V and VI of Section 1.72-9 of the Income
Tax Regulations.
4. Subsections (c) and (d) of Section 4.02, Annuity Payments to Annuitant,
are deleted.
Endorsed and made a part of the Contract as of the Effective Date.
/s/ Thomas J. McInerney
Thomas J. McInerney, President
Aetna Life Insurance and Annuity Company
Aetna Life Insurance and Annuity Company
ENDORSEMENT
This Contract is hereby endorsed to delete Section 6.01 and replace it with the
following:
The Maintenance fee will be $0 if the initial Purchase Payment is $10,000
or greater. The Maintenance Fee will be $25 if the initial Purchase Payment
is less than $10,000. If the Contract's Current Value is $10,000 or greater
on the date the Maintenance Fee is to be deducted, the Maintenance Fee will
be $0.
Endorsed and made a part of this Contract on the Effective Date of this
Contract.
/s/ Thomas J. McInerney
Thomas J. McInerney
President
Aetna Life Insurance and Annuity Company
EIP-MFIB-97
CONTRACT SCHEDULE
INDIVIDUAL RETIREMENT ANNUITY (IRA) AND SIMPLIFIED EMPLOYEE PENSION PLAN
Maintenance Fee: The annual Maintenance Fee is $25. If the Contract's
Current Value is $10,000 or greater on the date the
Maintenance Fee is to be deducted, the Maintenace Fee
will be $0.
Surrender Fee: For each surrender within the first Contract Year, the
Surrender Fee will be 1% (one percent) of the Current
Value. For all subsequent years, the Surrender Fee will
be 0% (zero percent).
No Surrender Fee is deducted from any portion of the
Current Value which is paid:
(a) At the death of the Annuitant before Annuity
payments start;
(b) As a premium for an Annuity under this Contract;
(c) For a full surrender where the Current Value is
equal to $2,500 or less and no surrenders have been
taken from the Contract within the prior 12 months;
(d) Due to an election of a Distribution Option; or
(e) In an amount equal to or less than 10% of the
Current Value, as part of the first partial
surrender request in a calendar year to a Contract
Holder who is at least age 59 1/2. The Current
Value is calculated as of the date the partial
surrender request is received in Good Order at
Aetna's Home Office. When a Distribution Option is
elected, this provision includes any amounts paid
under that election. This provision does not apply
to full surrender requests.
Charges to A daily charge is deducted from any portion of the
Separate Account: Current Value allocated to the Separate Account. The
deduction is the daily equivalent of an annual
percentage that will not exceed 1.50%. Current Separate
Account charges are 1.25% for the Annuity mortality
risk, the expense risk and the administrative charge.
Charges are subject to change annually, except for
amounts which have been used to purchase an Annuity.
The daily charge does not include investment advisory
fees and other expenses charged by a Fund investment
manager. These fees are disclosed in the applicable
Fund Prospectus.
Aetna will notify the Contract Holder of any change on
Separate Account charges.
IROIRA-97 INTROLL - N/REG - SCHED A
<PAGE>
Charges to Aetna will reduce the Separate Account charge by:
Separate Account
(Cont'd): (a) 0.10% if ten years have elapsed since the initial
Purchase Payment has been made to this Contract and
an Annuity Option has not been elected; or
(b) 0.10% if the Current Value in the Contract is
greater than $250,000 on the day of the initial
Purchase Payment or on each subsequent anniversary.
Table of Minimum The values in the below Table only apply to annual
Values--Fixed Account: Purchase Payments of exactly $1,000 credited to the
Fixed Account. Values would be different for other
Purchase Payment amounts, if partial surrenders are
made, or if Aetna adds interest at a rate greater than
the Guaranteed Interest Rate--Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of
exactly $1,000 is credited to the Fixed Account at the
3% Guaranteed Interest Rate at the beginning of each
Contract Year. The Maintenance Fee and applicable first
year Surrender Fee are deducted.
Table of Minimum Fixed Account Values
Per $1,000 of Net Purchase Payments
Allocated to the Fixed Account
<TABLE>
<CAPTION>
End of Minimum Minimum End of Minimum Minimum
Year Current Value Surrender Value Year Current Value Surrender Value
- ------ ------------- --------------- ------ ------------- ---------------
<S> <C> <C> <C> <C> <C>
1 $ 1,005 $ 995 16 $ 20,480 $ 20,480
2 2,040 2,040 17 22,124 22,124
3 3,106 3,106 18 23,818 23,818
4 4,205 4,205 19 25,563 25,563
5 5,336 5,336 20 27,360 27,360
6 6,501 6,501 25 37,186 37,186
7 7,701 7,701
8 8,937 8,937 30 48,577 48,557
9 10,235 10,235
10 11,572 11,572 35 61,782 61,782
11 12,949 12,949 40 77,091 77,091
12 14,368 14,368
13 15,829 15,829 45 94,838 94,838
14 17,333 17,333
15 18,883 18,883 50 115,411 115,411
</TABLE>
IROIRA-97 INTROLL - N/REG - SCHED A
CONTRACT SCHEDULE
INDIVIDUAL RETIREMENT ANNUITY (IRA) AND SIMPLIFIED EMPLOYEE PENSION PLAN
Maintenance Fee: The annual Maintenance Fee is $25. If the Contract's
Current Value is $10,000 or greater on the date the
Maintenance Fee is to be deducted, the Maintenance Fee
will be $0.
Surrender Fee: For each surrender, the Surrender Fee will be
determined according to the number of completed
Contract Years between the date the first Net Purchase
Payment is applied to the Aetna predecessor contract
and the date of surrender. The Surrender Fee will be
determined as follows:
Completed Contract Years Surrender Fee
Less than 2 years 6%
2 or more but less than 3 5%
3 or more but less than 4 4%
4 or more but less than 5 3%
5 or more but less than 6 2%
6 or more but less than 7 1%
7 or more years 0%
No Surrender Fee is deducted from any portion of the
Current Value which is paid:
(a) At the death of the Annuitant before Annuity
payments start;
(b) As a premium for an Annuity under this Contract;
(c) For a full surrender where the Current Value is
equal to $2,500 or less and no surrenders have been
taken from the Contract within the prior 12 months;
(d) Due to an election of a Distribution Option; or
(e) In an amount equal to or less than 10% of the
Current Value, as part of the first partial
surrender request in a calendar year to a Contract
Holder who is at least age 59 1/2. The Current
Value is calculated as of the date the partial
surrender request is received in Good Order at
Aetna's Home Office. When a Distribution Option is
elected, this provision includes any amounts paid
under that election. This provision does not apply
to full surrender requests.
Charges to A daily charge is deducted from any portion of the
Separate Account: Current Value allocated to the Separate Account. The
deduction is the daily equivalent of an annual
percentage that will not exceed 1.50%. Current Separate
Account charges are 1.25% for the Annuity mortality
risk, the expense risk and the administrative charge.
Charges are subject to change annually, except for
amounts
IROPIRA-97 INTROLL - REG - SCHED C
<PAGE>
Charges to which have been used to purchase an Annuity. The daily
Separate Account charge does not include investment advisory fees and
(Cont'd): other expenses charged by a Fund investment manager.
These fees are disclosed in the applicable Fund
Prospectus.
Aetna will notify the Contract Holder of any change on
Separate Account charges.
Aetna will reduce the Separate Account charge by:
(a) 0.10% if ten years have elapsed since the initial
Purchase Payment has been made to this Contract and
an Annuity Option has not been elected; or
(b) 0.10% if the Current Value in the Contract is
greater than $250,000 on the day of the initial
Purchase Payment or on each subsequent anniversary.
Table of Minimum The values in the below Table only apply to annual
Values--Fixed Account: Purchase Payments of exactly $1,000 credited to the
Fixed Account. Values would be different for other
Purchase Payment amounts, if partial surrenders are
made, or if Aetna adds interest at a rate greater than
the Guaranteed Interest Rate--Fixed Account (see 3.02).
The Surrender Value assumes that a Purchase Payment of
exactly $1,000 is credited to the Fixed Account at the
3% Guaranteed Interest Rate at the beginning of each
Contract Year. The Maintenance Fee and applicable
Surrender Fee are deducted.
Table of Minimum Fixed Account Values
Per $1,000 of Net Purchase Payments
Allocated to the Fixed Account
<TABLE>
<CAPTION>
End of Minimum Minimum End of Minimum Minimum
Year Current Value Surrender Value Year Current Value Surrender Value
- ------ ------------- --------------- ------ ------------- ---------------
<S> <C> <C> <C> <C> <C>
1 $ 1,005 $ 945 16 $ 20,480 $ 20,480
2 2,040 1,938 17 22,124 22,124
3 3,106 2,982 18 23,818 23,818
4 4,205 4,078 19 25,563 25,563
5 5,336 5,229 20 27,360 27,360
6 6,501 6,436 25 37,186 37,186
7 7,701 7,701
8 8,937 8,937 30 48,577 48,577
9 10,235 10,235
10 11,572 11,572 35 61,782 61,782
11 12,949 12,949 40 77,091 77,091
12 14,368 14,368
13 15,829 15,829 45 94,838 94,838
14 17,333 17,333
15 18,883 18,883 50 115,411 115,411
</TABLE>
IROPIRA-97 INTROLL - REG - SCHED C
<TABLE>
<S> <C>
Individual Application Aetna Life Insurance and Annuity Company
for Annuity Contract IRA Customer Service
151 Farmington Avenue
Hartford, Connecticut 06156-1258
This application is for Aetna IRA and Simplified Employee Pension (SEP)
Contracts only.
Customer Information
- -----------------------------------------------------------------------------------------------------------------------------------
1. Name of Applicant (Last, First, Initial) Social Security Number
- -----------------------------------------------------------------------------------------------------------------------------------
Street Address Home Phone Number Work Phone Number
- -----------------------------------------------------------------------------------------------------------------------------------
City State ZIP Code
- -----------------------------------------------------------------------------------------------------------------------------------
2. |_| Male |_| Female 3. |_| Married |_| Single 4. Number of Dependents
- -----------------------------------------------------------------------------------------------------------------------------------
5. Birthdate 6. Planned Retirement Age 7. Occupation
- -----------------------------------------------------------------------------------------------------------------------------------
8. Employer Name and Address 9. If you are associated with an NASD*
member, please list the affiliation
*National Association of Security
Dealers, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
10. What are your Investment Objectives?
|_| Tax Deferral |_| Safety of Principal |_| Long Term Capital Growth |_| Income |_| Other __________
11. Amount of Life Insurance |_| None |_| $1 - 100,000 |_| More than $100,000
12. Amount of Savings |_| None |_| $1 - 5,000 |_| $5,001 - 10,000 |_| More than $10,000
13. Annual Income
|_| $1 - 10,000 |_| $10,001 - 25,000 |_| $25,001 - 40,000 |_| $40,001 - 50,000 |_| More than $50,000
Account Information
- -----------------------------------------------------------------------------------------------------------------------------------
14. Type of plan and section of Internal Revenue Code under which the plan will qualify:
|_| IRA 408(b) |_| SEP 408(k): Name of plan _____________________________________________________________________
- -----------------------------------------------------------------------------------------------------------------------------------
15. Will this change or replace any existing life insurance or annuity contract? |_| No |_| Yes
(Include replacement notice if applicable)
If yes, please provide carrier name, account number and date to be cancelled:__________________________________________________
- -----------------------------------------------------------------------------------------------------------------------------------
16. Complete this section for IRA Rollover. (The contract is subject to a minimum rollover amount. Please refer to the prospectus.)
Payout will be: |_| Deferred |_| Immediate Rollover Amount: $_________________
If applying for a Single Premium Immediate Annuity Contract, please also complete the Aetna Settlement Election Form
- -----------------------------------------------------------------------------------------------------------------------------------
17. Complete this section for Installment Payment. (The contract is subject to a minimum installment amount. Please refer to the
prospectus.)
Payment Frequency: |_| Annual |_| Semi-annual |_| Quarterly |_| Monthly |_| Automatic Bank Check Plan (Attach forms)
Installment Payment Amount $____________ The initial payment is for the tax year ending December 31, _____
Investment Options
- -----------------------------------------------------------------------------------------------------------------------------------
18. Enter the percentage of payment to be allocated to each investment option. Total must be 100%. Use only whole percentages on
up to 10 investment option choices. (*Please refer to the prospectus for Guaranteed Account options available)
Aetna Income Shares (Bond) ____% Alger American Fund (Small Capitalization Portfolio)
Aetna Fixed Account (Credited Interest) ____% Fidelity Investments VIP Fund (Growth Portfolio)
Aetna GET Fund Series (GET) ____% Fidelity Investments VIP Fund (Equity-Income Portfolio)
Aetna Variable Fund (Growth & Income) ____% Fidelity Investments VIP Fund (Overseas Portfolio)
Aetna Guaranteed Short Term Account* ____% Scudder VL Investment Fund (International Portfolio)
Aetna Guaranteed Long Term Account* ____% TCI Portfolios, Inc., TCI Growth (Growth)
Aetna Investment Advisers Fund, Inc. (Managed) ____% Other
Aetna Variable Encore Fund (Money Market) ____% Other
TOTAL
304.00.1A
<PAGE>
Beneficiary Information
- -----------------------------------------------------------------------------------------------------------------------------------
19. Primary:
Name and Relationship ________________________ Social Security Number ____________________________ Birthdate ______________
Contingent: ________________________ ____________________________ ______________
Name and Relationship ________________________ Social Security Number ____________________________ Birthdate ______________
________________________ ____________________________ ______________
Explanation of Variable Annuity Contract
- -----------------------------------------------------------------------------------------------------------------------------------
20. Before entering into this agreement, please read the following carefully. (Complete details are in the prospectus.)
1. This variable annuity contract is intended as a long-term retirement plan.
2. Variable benefits cannot be predicted or guaranteed as to a dollar amount.
3. A daily deduction is made from the variable portion of the contract values. This charge is for investment management
expenses and the contract guarantees.
4. A maintenance fee may be deducted from the value of the contract each year.
5. If any part of this contract is surrendered, there may be deferred sales charges deducted from the surrendered amount.
6. Once annuity payments begin, they can only be stopped if provided by your contract.
Signature Information (The contract effective date will be the date of applicant's signature.)
- -----------------------------------------------------------------------------------------------------------------------------------
21. Special Requests
22. Please read the information below and sign in the space provided.
I have received the following prospectuses dated ________________________
1. PFS 704.00.1 |_| Please send me a Statement of Additional Information for this prospectus.
2. Current Prospectuses for all of the available funds under this contract.
I understand that annuity payments and termination values (if any) provided by this contract, when based on the investment
experience of a separate account, are variable and not guaranteed as to a fixed dollar amount. However, fixed and/or general
account funds will not vary and are guaranteed as to a fixed dollar amount. I understand that when I make future changes to my
investment accounts, I have full responsibility for determining that these changes are consistent with my existing investment
objectives.
Dated at _______________________________ this ________________ day of _______________________ 19_____________
City and State
_________________________________ _________________________________
Witness Applicant (Contract Holder)
Producer Information
- -----------------------------------------------------------------------------------------------------------------------------------
Name _______________________________ ALIAC Office and Producer Codes _______________ Percentage of Participation _____________
_______________________________ _______________ _____________
Do you have any reason to believe any existing life insurance or annuity contracts will be modified or replaced if this contract is
issued? |_| Yes |_| No Social Security Number _______________________________________
By your signature below, you certify that you have reviewed the details of the client's retirement program and believe the contract
applied for is suitable for that program.
_______________________________________ ____________________________________________
License No. (Florida only) Signature of Agent
Home Office Use Only
- -----------------------------------------------------------------------------------------------------------------------------------
Corrections and Amendments: Errors and omissions may be corrected by the Company. Written consent of the application required for
the following: Change in plan, age at issue, birthdate, classification, amount, extra benefits and allocation entered or omitted.
(N/A in West Virginia)
Accepted By: ______________________________
</TABLE>
[Aetna Logo]
[Aetna Letterhead] 151 Farmington Avenue
Hartford, CT 06156
October 30, 1997 Julie E. Rockmore
Counsel
Law Division, RE4A
Investments & Financial Services
(860) 273-4686
Fax: (860) 273-8340
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, DC 20549
Re: Aetna Life Insurance and Annuity Company and its Variable Annuity Account C
Post-Effective Amendment No. 10 to Registration Statement on Form N-4
Prospectus Title: Deferred Variable Annuity Contracts for use with
Individual Retirement Annuities (IRAs) and Simplified Employee Pension
(SEP) Plans under Section 408
File Nos. 33-75988* and 811-2513
Dear Sir or Madam:
The undersigned serves as counsel to Aetna Life Insurance and Annuity Company, a
Connecticut life insurance company (the "Company"). It is my understanding that
the Company, as depositor, has registered an indefinite amount of securities
(the "Securities") under the Securities Act of 1933 (the "Securities Act") as
provided in Rule 24f-2 under the Investment Company Act of 1940 (the "Investment
Company Act").
In connection with this opinion, I have reviewed the N-4 Registration Statement,
as amended to the date hereof, and this Post-Effective Amendment No. 10. I have
also examined originals or copies, certified or otherwise identified to my
satisfaction, of such documents, trust records and other instruments I have
deemed necessary or appropriate for the purpose of rendering this opinion. For
purposes of such examination, I have assumed the genuineness of all signatures
on original documents and the conformity to the original of all copies.
I am admitted to practice law in Connecticut, and do not purport to be an expert
on the laws of any other state. My opinion herein as to any other law is based
upon a limited inquiry thereof which I have deemed appropriate under the
circumstances.
- --------
* Pursuant to Rule 429(a) under the Securities Act of 1933, Registrant has
included a combined prospectus under this Registration Statement which
includes all the information which would currently be required in
prospectuses relating to the securities covered by the following earlier
Registration Statements: 33-75972; 33-76024; and 33-89858.
<PAGE>
Based upon the foregoing, and, assuming the Securities are sold in accordance
with the provisions of the prospectus, I am of the opinion that the Securities
being registered will be legally issued and will represent binding obligations
of the Company.
I consent to the filing of this opinion as an exhibit to the Registration
Statement.
Sincerely,
/s/ Julie E. Rockmore
- ---------------------
Julie E. Rockmore
Consent of Independent Auditors
The Board of Directors of Aetna Life Insurance and Annuity Company and
Contractholders of Aetna Variable Annuity Account C:
We consent to the incorporation by reference into Registration Statement
(No. 33-75988) on Form N-4 our reports dated February 7, 1997 and February 14,
1997.
/s/ KPMG Peat Marwick LLP
Hartford, Connecticut
October 30, 1997
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000103007
<NAME> Aetna Variable Annuity Account C
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> DEC-31-1996
<INVESTMENTS-AT-COST> 7,952,811,278
<INVESTMENTS-AT-VALUE> 8,565,202,363
<RECEIVABLES> 0
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,565,202,363
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 0
<TOTAL-LIABILITIES> 0
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 0
<SHARES-COMMON-STOCK> 0
<SHARES-COMMON-PRIOR> 0
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 0
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 0
<NET-ASSETS> 8,565,202,363
<DIVIDEND-INCOME> 712,854,599
<INTEREST-INCOME> 0
<OTHER-INCOME> 0
<EXPENSES-NET> 93,446,331
<NET-INVESTMENT-INCOME> 619,408,268
<REALIZED-GAINS-CURRENT> 513,568,522
<APPREC-INCREASE-CURRENT> 18,307,901
<NET-CHANGE-FROM-OPS> 1,151,284,691
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 0
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 0
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 0
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 0
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 0
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 0
<PER-SHARE-NII> 0
<PER-SHARE-GAIN-APPREC> 0
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 0
<EXPENSE-RATIO> 0
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
</TABLE>
