File No.
- --------------------------------------------------------------------------------
File No.
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 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. [ ]
----------
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE ANNUITY
SEPARATE ACCOUNT II
(Exact Name of Registrant as Specified in its Charter)
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(Name of Depositor)
20 Washington Avenue South, Minneapolis, Minnesota 55401
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code: (612) 342-7346
Stewart D. Gregg
ReliaStar Life Insurance Company of New York
20 Washington Avenue South
Minneapolis, Minnesota 55401
(Name and Address of Agent of Service)
Approximate date of proposed Public Offering:
As soon as practicable after the Registration Statement becomes effective.
It is proposed that this filing will become effective
(check appropriate space)
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[ ] on (date) pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a) of Rule 485
[ ] on (date) pursuant to paragraph (a) of Rule 485.
If appropriate, check the following box:
[ ] this post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
The Registrant hereby amends this Registration Statement 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 Commision, actcing pursuant to said Section 8(a),
may determine.
Title of securities being registered: Variable annuity contracts issued by a
registered separate account.
- -------------------------------------------------------------------------------
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE ANNUITY SEPARATE ACCOUNT II
Cross Reference Sheet Pursuant to Rule 495(a)
Form N-4
Item Number Part A Information Required in Prospectus
- - - ------- -----------------------------------------
1. Cover Page
2. Definitions
3. Summary of Contract Expenses
4. Performance Information and Condensed Financial
Information
5. ReliaStar Life Insurance Company of New York; The Variable
Account; Investments of the Variable Account
6. Charges Made by ReliaStar Life Insurance Company of
New York
7. The Contracts
8. Annuity Provisions
9. The Contracts
10. The Contracts
11. The Contracts
12. Federal Tax Status
13. Legal Proceedings
14. Statement of Additional Information Table of Contents
Part B Information Required in Statement of Additional Information
------------------------------------------------------------------
15. Cover Page
16. Table of Contents
17. Introduction
18. Administration of the Contracts
19. Distribution of the Contracts
20. Distribution of the Contracts
21. Calculation of Yield and Return
22. Annuity Provisions (In Prospectus)
23. Financial Statements
Part C Other Information
------------------------
24. Financial Statements and Exhibits
25. Directors and Officers of the Depositor
26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
27. Number of Contract Owners
28. Indemnification
29. Principal Underwriters
30. Location of Accounts and Records
31. Not Applicable
32. Undertakings
<PAGE>
RELIASTAR
ReliStar Life Insurance Company of New York
September____, 1998
[LOGO] RELIASTAR
INDIVIDUAL DEFERRED VARIABLE/FIXED ANNUITY CONTRACTS
ISSUED BY
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE ANNUITY SEPARATE ACCOUNT II
OF RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
PROFILE OF OUR INDIVIDUAL FIXED AND VARIABLE ANNUITY CONTRACT
THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT FEATURES OF THE CONTRACT
THAT YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING IT. THE CONTRACT IS MORE
FULLY DESCRIBED IN THE PROSPECTUS WHICH ACCOMPANIES THIS PROFILE. PLEASE READ
THE PROSPECTUS CAREFULLY.
1. THE ANNUITY CONTRACT: The fixed and variable annuity contract we are offering
is a contract between you, the owner, and us, ReliaStar Life Insurance Company
of New York ("ReliaStar New York"). It provides a means for selecting one or
more investment funds ("Investment Options" or "Funds") on a tax-deferred basis.
The Contract is intended for retirement savings or other long-term investment
purposes and provides for a death benefit and guaranteed income options.
Through the Variable Account, the Contract offers up to 28 investment
options from which you can choose up to 17 over the lifetime of the Contract.
Currently there is no charge for transfers. The returns on these investment
options are not guaranteed and you can possibly lose money.
The Contract also offers a Fixed Account. This Fixed Account has an
interest rate that is set periodically by ReliaStar Life. While your money is
in the fixed account, the interest you earn and your principal is guaranteed by
ReliaStar New York.
The Contract has two phases: the accumulation phase and the income or
payout phase. During the accumulation phase, earnings accumulate on a
tax-deferred basis and are not taxed as income until you make a withdrawal. The
amounts accumulated during the accumulation phase will determine the amount of
annuity payments. The income phase occurs when you begin receiving regular
annuity payments from your contract on the annuity commencent date.
<PAGE>
2. ANNUITY PAYMENTS (THE INCOME PHASE): If you want to receive regular income
from your annuity, you can choose one of three options: (1) monthly payments for
your life (assuming you are the annuitant); (2) monthly payments for your life,
but with payments continuing to the beneficiary for 10 or 20 years (as you
select) if you die before the end of the selected period; and (3) monthly
payments for your life and for the life of another person (usually your spouse)
selected by you. Once you begin receiving regular annuity payments, you cannot
change your payment plan.
During the income phase, you have the same investment options you had
during the accumulation phase. You can choose to have annuity payments come from
the Fixed Account, the Variable Account or both. If you choose to have any part
of your payments come from the Variable Account, the dollar amount of your
annuity annuity payments may go up or down.
3. PURCHASE: The minimum amount ReliaStar New York will accept as an initial
purchase payment is $5,000 for Non-Qualified Contracts and $2,000 for Qualified
Contracts. ReliaStar New York may choose not to accept any subsequent purchase
payment for a Non-Qualified Contract if it is less than $500 and for a Qualified
Contract if it is less than $200. ReliaStar New York may choose not to accept
any subsequent purchase payments if the additional payments, when added to the
Contract Value at the next Valuation Date, would exceed $1,000,000.
4. INVESTMENT OPTIONS: You can put your money in up to 17 of these 28 investment
options which are described in the prospectuses for the Funds. You do not have
to choose your investment options in advance, but upon participation in the
seventeenth Fund you would only be able to transfer within the seventeen already
utilized and which are still available.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Fidelity Variable Insurance Neuberger&Berman Advisers
The Alger American Fund: Products Fund II: Management Trust OCC Accumulation Trust:
- ------------------------ --------------------------- ------------------------- ----------------------
Equity Portfolio
Growth Portfolio Global Equity Portfolio
MidCap Growth Portfolio VIP II Contrafund Portfolio Limited Maturity Bond Portfolio Managed Portfolio
VIP II Index 500 Portfolio Partners Portfolio Small Cap Portfolio
Small Capitalization Portfolio VIP II Investment Grade Bond
Portfolio
Fidelity Variable Insurance
Products Fund: Janus Aspen Series: Northstar Galaxy Trust: Putnam Variable Trust:
- ---------------------- ---------------------------- --------------------------- ------------------------
VIP Equity-Income Portfolio Aggressive Growth Portfolio Growth + Value Portfolio Putnam VT Diversified
VIP Growth Portfolio Growth Portfolio High Yield Bond Portfolio Income Fund
VIP High Income Portfolio International Growth Portfolio Income and Growth Portfolio Putnam VT Growth and
VIP Money Market Portfolio Worldwide Growth Portfolio International Value Portfolio Income Fund
Multi-Sector Bond Portfolio Putnam VT Voyager Fund
</TABLE>
Depending upon market conditions, you can make or lose money in any of these
Funds.
5. EXPENSES: The Contract has insurance features and investment features, and
there are costs related to each.
Each year ReliaStar New York deducts a $30 contract maintenance charge
from your Contract. Reliastar New York reserves the right to waive this Annual
Contract Charge where the cumulative purchase payments, less any cumulative
partial surrenders, exceed $50,000. We also deduct for insurance and
administrative charges which annually total 1.40% of the average daily value of
your Contract allocated to the investment portfolios.
There are also investment fund annual expenses which range from 0.28%
to 1.19% of the average daily value of the investment fund depending upon
the investment option which you select.
<PAGE>
If you take your money out, we may assess a withdrawal charge. This
charge is equal to a maximum of 6% in years 1 and 2 and reduces to 0 after year
6. We may also assess a state premium tax charge which ranges from 0-3.5%
depending upon the state.
The following chart is designed to help you understand the expenses
in the Contract. The column "Total Annual Expenses" shows the total of the $30
contract maintenance charge (which is represented as .08% below), the 1.40%
insurance charges and the investment expenses for each investment portfolio.
The next two columns show you two examples of the expenses, in dollars, you
would pay under a Contract. The examples assume that you invested $1,000 in a
Contract which earns 5% annually and that you withdraw your money: (1) at the
end of year 1, and (2) at the end of year 10. For year 1, the Total Annual
Expenses are assessed as well as the withdrawal charges. For year 10, the
example shows the aggregate of all the annual expenses assessed for the 10
years, but there is no withdrawal charge. The premium tax is assumed to be 0%
in both examples.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Total Annual
Expenses At End of:
Total Annual Total Annual Total Annual (1) (2)
INVESTMENT FUNDS Insurance Charges Portfolio Expenses Expenses 1 Year 10 Years
- ------------------- ------------------ ------------------ ------------ ---------- --------
THE ALGER AMERICAN FUND:
Growth Portfolio 1.48% 0.79% 2.27% $77 $ 260
MidCap Growth Portfolio 1.48% 0.84% 2.32% $77 $ 265
Small Capitalization Portfolio 1.48% 0.89% 2.37% $78 $ 270
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio 1.48% 0.58% 2.06% $75 $ 239
VIP Growth Portfolio 1.48% 0.69% 2.17% $76 $ 250
VIP High Income Portfolio 1.48% 0.71% 2.19% $76 $ 252
VIP Money Market Portfolio 1.48% 0.31% 1.79% $72 $ 210
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund Portfolio 1.48% 0.71% 2.19% $76 $ 252
VIP II Index 500 Portfolio 1.48% 0.28% 1.76% $72 $ 207
VIP II Investment Grade Bond Portfolio 1.48% 0.58% 2.06% $75 $ 239
JANUS ASPEN SERIES:
Aggressive Growth Portfolio 1.48% 0.76% 2.24% $77 $ 257
Growth Portfolio 1.48% 0.70% 2.18% $76 $ 251
International Growth Portfolio 1.48% 0.96% 2.44% $79 $ 277
Worldwide Growth Portfolio 1.48% 0.74% 2.22% $76 $ 255
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST
Limited Maturity Bond Portfolio 1.48% 0.77% 2.25% $78 $ 267
Partners Portfolio 1.48% 0.86% 2.34% $77 $ 258
NORTHSTAR GALAXY TRUST:
Growth + Value Portfolio 1.48% 0.80% 2.28% $77 $ 261
High Yield Bond Portfolio 1.48% 0.80% 2.28% $77 $ 261
Income and Growth Portfolio 1.48% 0.80% 2.28% $77 $ 261
International Value Portfolio 1.48% 0.80% 2.28% $77 $ 261
Multi-Sector Bond Portfolio 1.48% 0.80% 2.28% $77 $ 261
OCC ACCUMULATION TRUST:
Equity Portfolio 1.48% 0.99% 2.47% $79 $ 280
Global Equity Portfolio 1.48% 1.19% 2.67% $81 $ 300
Managed Portfolio 1.48% 0.87% 2.35% $78 $ 268
Small Cap Portfolio 1.48% 0.97% 2.45% $79 $ 278
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund 1.48% 0.80% 2.28% $77 $ 261
Putnam VT Growth and Income Fund 1.48% 0.51% 1.99% $74 $ 231
Putnam VT Voyager Fund 1.48% 0.59% 2.07% $75 $ 240
______________________________________________________________________________________________________________________________
</TABLE>
The charges reflect any expense reimbursement or fee waiver. For more detailed
information, see Summary of Contract Expenses in the Prospectus for the
Contract.
<PAGE>
6. TAXES: Your earnings are not taxed until you take them out. If you withdraw
money earnings may come out first and will be taxed as income. If you are
younger than 59 1/2 when you take money out, you may be charged a 10% federal
tax penalty on the amount treated as taxable income. Annuity payments during the
income phase may be considered partly a return of your original investment, in
which case that part of each payment is not taxable as income.
7. ACCESS TO YOUR MONEY: You can take money out at any time during the
accumulation phase. After the first year, you can take up to 10% of your total
purchase payments each year without charge from us. Withdrawals in excess of
that will be charged a maximum of 6% in years 1 and 2 which reduces to 0 after
year 6. After we have a payment for 6 years, there is no charge for withdrawals
for those payments. You may also have to pay income tax and a tax penalty on any
money you take out. Each purchase payment you add to your Contract has its own 6
year withdrawal charge period.
8. PERFORMANCE: The value of the Contract will vary up or down depending upon
the investment performance of the investment fund you choose. Performance will
be affected by the insurance charges, the contract maintenance charge, the
investment expenses and other expenses of the investment fund, and any
applicable withdrawal charges. Past performance is not a guarantee of future
results.
<PAGE>
9. DEATH BENEFIT: If you die prior to the income phase, the person you have
chosen as your beneficiary will receive a death benefit. This death benefit will
be the greater of three amounts: 1) the money you've put in less any money
you've taken out, or 2) the current value of your Contract, or 3) the value of
your Contract at the most recent specified contract anniversary plus any money
you've added since that anniversary reduced for any money you've taken out since
that anniversary. If you die after age 85, your beneficiary would receive the
Contract Value.
10. OTHER INFORMATION
FREE LOOK. If you cancel the Contract within 10 days after receiving it (or
whatever period is required in your state), we will return the Contract Value
without assessing a withdrawal charge. You will receive whatever your Contract
is worth on the day we receive your request. This may be more or less than your
original payment.
NO PROBATE. In most cases, when you die, the person you choose as your
beneficiary will receive the death benefit without going through probate.
WHO SHOULD PURCHASE THE CONTRACT? This Contract is designed for people seeking
long-term tax-deferred accumulation of assets, generally for retirement or other
long-term purposes. The tax-deferred feature is most attractive to people in
high federal and state tax brackets. You should not buy this Contract if you are
looking for a short-term investment or if you cannot take the risk of getting
back less money than you put in.
<PAGE>
ADDITIONAL FEATURES. This Contract has additional Features you might be
interested in. These include:
* You can arrange to have money automatically sent to you each month
while your Contract is still in the accumulation phase. Of course,
you'll have to pay taxes on money you receive. ReliaStar New York
calls this feature the Systematic Withdrawal Program.
* You can arrange to have a regular amount of money automatically
transferred to investment portfolios each month to provide for regular
level investments over time. ReliaStar New York calls this feature
Dollar Cost Averaging.
* ReliaStar New York will automatically readjust the money in your
Contract between investment portfolios periodically to keep the blend
you select. ReliaStar New York calls this feature Portfolio
Rebalancing.
These features may not be suitable for your particular situation.
11. INQUIRIES If you need more information, please contact us at:
ReliaStar Life Insurance Company of New York
1000 Woodbury Road, Suite 102
Woodbury, New York 11797
1-800-621-3750
or the distributor of the Contracts, our affiliated Company,
Washington Square Securities, Inc.
20 Washington Avenue South
Minneapolis, Minnesota 55401
1-800-621-3750
or your registered representative
<PAGE>
ReliaStar Life Insurance Company of New York
1000 Woodbury Road, Suite 102
Woodbury, New York 11797
1-800-621-3750
INDIVIDUAL DEFERRED VARIABLE/FIXED ANNUITY CONTRACTS
ISSUED BY
THE RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE ANNUITY SEPARATE ACCOUNT II
OF RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
This Prospectus offers flexible purchase payment Individual Deferred
Variable/Fixed Annuity Contracts. The Contracts are sold both as non-qualified
contracts and in connection with retirement plans which may qualify for special
federal tax treatment under the Internal Revenue Code. (See "Federal Tax
Status".) Annuity payouts from the Contracts are deferred until a selected later
date.
You can allocate purchase payments to one or more Sub-Accounts of
ReliaStar Life Insurance Company of New York Variable Annuity Separate Account
II (the "Variable Account"), a separate account of ReliaStar Life Insurance
Company of New York ("ReliaStar New York"), to be invested at net asset value in
shares of one or more of a group of investment funds (the "Investment Funds").
The currently available Investment Funds are three portfolios of The Alger
American Fund, four portfolios of Fidelity Variable Insurance Products Fund,
three portfolios of Fidelity Variable Insurance Products Fund II, four
portfolios of Janus Aspen Series, two portfolios of Neuberger&Berman Advisers
Management Trust, five portfolios of the Northstar Galaxy Trust, four
portfolios of the OCC Accumulation Trust and three funds of Putnam Variable
Trust. Each Investment Fund pays its investment adviser certain fees charged
against the assets of the Investment Fund. The Variable Account, your account
value and the amount of any variable annuity payments that you receive will
vary, primarily based on the investment performance of the Investment Funds you
select. (For more information about investing in the Investment Funds, see
"Investments of the Variable Account".) You can also allocate payments to the
Fixed Account (which is the general account of ReliaStar New York).
Additional information about the Contracts, ReliaStar New York and the
Variable Account, contained in a Statement of Additional Information dated
September___, 1998, has been filed with the Securities and Exchange Commission.
The Statement of Additional Information is available by accessing the SEC's
internet web site (http: // www.sec.gov) or upon request without charge by
writing to Washington Square Securities, Inc., 20 Washington Avenue South,
Minneapolis, Minnesota 55401 or by calling 1-800-621-3750. The Statement of
Additional Information is incorporated by reference in this Prospectus, and its
Table of Contents can be found on page __of this Prospectus.
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE CONTRACT THAT A
PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING AND SHOULD BE RETAINED 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
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
SHARES OF THE INVESTMENT FUNDS AND INTERESTS IN THE CONTRACTS AND THE FIXED
ACCOUNT ARE NOT DEPOSITS OF A BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION.
THIS PROSPECTUS IS ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR THE INVESTMENT
FUNDS OFFERED BY THE ALGER AMERICAN FUND, FIDELITY VARIABLE INSURANCE PRODUCTS
FUND, FIDELITY VARIABLE INSURANCE PRODUCTS FUND II, JANUS ASPEN SERIES,
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST, THE NORTHSTAR VARIABLE TRUST, THE
OCC ACCUMULATION TRUST AND PUTNAM VARIABLE TRUST, AND IS VALID ONLY WHEN
ACCOMPANIED BY THESE PROSPECTUSES.
THE DATE OF THIS PROSPECTUS IS SEPTEMBER____, 1998.
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C>
Definitions.................................................. Frequency and Amount of Annuity Payments................
Summary of Contract Expenses................................. Annuity Payments........................................
ReliaStar Life Insurance Company of New York................. Sub-Account Annuity Unit Value..........................
The Variable Account......................................... Assumed Investment Rate.................................
Investments of the Variable Account.......................... Federal Tax Status.........................................
Charges Made by ReliaStar New York........................... Introduction............................................
Surrender Charge (Contingent Deferred Sales Charge)...... Tax Status of the Contract..............................
Annual Contract Charge................................... Taxation of Annuities...................................
Waiver of Charges........................................ Taxation of Death Benefit Proceeds......................
Mortality Risk Premium................................... Penalty Tax on Certain Distributions....................
Expense Risk Premium..................................... Possible Changes in Taxation............................
Administration Charge.................................... Transfers, Assignments or Exchanges of a Contract.......
Premium and Other Taxes.................................. Withholding.............................................
Reduction or Waiver of Charges........................... Multiple Contracts......................................
Expenses of the Investment Funds......................... Taxation of Qualified Plans.............................
Administration of the Contracts.............................. Possible Charge for ReliaStar New York's Taxes..........
The Contracts................................................ Other Tax Consequences..................................
Allocation of Purchase Payments.......................... Voting of Fund Shares......................................
Sub-Account Accumulation Unit Value...................... Distribution of the Contracts..............................
Net Investment Factor.................................... Revocation.................................................
Death Benefit Before the Annuity Commencement Date....... Reports to Owners..........................................
Death Benefit After the Annuity Commencement Date........ Preparing for Year 2000....................................
Surrender (Redemption)................................... Legal Proceedings..........................................
Systematic Withdrawals................................... Financial Statements and Experts...........................
Transfers................................................ Further Information........................................
Dollar Cost Averaging Transfers.......................... Statement of Additional Information Table of Contents......
Portfolio Rebalancing Service............................ Appendix A: The Fixed Account..............................
Assignments.............................................. Appendix B: Performance Information and Condensed Financial
Contract Owner and Beneficiaries......................... Information...............................................
Contract Inquiries.......................................
Annuity Provisions........................................... Investment Fund Prospectuses
Annuity Commencement Date................................ ("Select*Product Investment Options")
Annuity Form Selection................................... The Alger American Fund
Annuity Forms............................................ Fidelity Variable Insurance Products Fund (VIP)
Fidelity Variable Insurance Products Fund II (VIP II)
Janus Aspen Series
Neuberger&Berman Advisers Management Trust
Northstar Galaxy Trust
OCC Accumulation Trust
Putnam Variable Trust
</TABLE>
DEFINITIONS
ANNUITANT - The person who is named by the Owner whose life determines the
annuity benefits payable.
ANNUITY COMMENCEMENT DATE (COMMENCEMENT DATE) - The date on which the annuity
payments begin, which must be the first day of a month. The date will
be the first day of the month following the Annuitant's 75th birthday
unless an earlier or later date has been selected by the Owner and, if
the date is later, it has been agreed to by ReliaStar New York.
<PAGE>
BENEFICIARY - The person who is named to receive the Contract Value upon the
death of the Owner before the Annuity Commencement Date or to receive
the balance of the annuity payments, if any, under the Annuity Form in
effect at the Annuitant's death.
CODE - The Internal Revenue Code of 1986, as amended.
CONTRACT ANNIVERSARY - Occurs yearly on the same day and month the Contract was
issued.
CONTRACT OWNER (OWNER) - The person who controls all the rights and privileges
under the Contract. The Annuitant owns the Contract unless another
Owner is named as provided for in the Contract. The Contract may be
owned by one, but no more than two, natural persons only, except when
it is held under a retirement plan or program described in Section
401(a), 403(a), 403(b), 408 or 408A or similar provisions
of the Code.
CONTRACT VALUE - The sum of (a) the Variable Account Contract Value, which is
the value of the Sub-Account Accumulation Units under the Contract plus
(b) the Fixed Account Contract Value, which is the sum of purchase
payments allocated to the Fixed Account under the Contract, plus
credited interest, minus surrenders, surrender charges previously
applied, and any annual administrative charges applicable to the Fixed
Account, and minus any transfers to the Variable Account.
CONTRACT YEAR - Each twelve-month period starting with the date the Contract was
issued and each Contract Anniversary after that.
DEATH BENEFIT - The amount payable upon the death of a Contract Owner before the
Annuity Commencement Date. (See "Death Benefit Before the Annuity
Commencement Date".)
DEATH BENEFIT VALUATION DATE - The Death Benefit Valuation Date is the Valuation
Date next following the date ReliaStar Life receives proof of death and
a written request from the Beneficiary for a single sum payment or an
Annuity Form permitted by Section 72(s) of the Code.
FIXED ACCOUNT - The Fixed Account is the general account of ReliaStar New York,
which consists of all assets of ReliaStar New York other than those
allocated to separate accounts of ReliaStar New York.
FIXED ANNUITY - An annuity with payments which do not vary as to dollar amount.
INVESTMENT FUNDS - Any open-end management investment company (or portfolio
thereof) or unit investment trust (or series thereof) in which a
Sub-Account invests.
QUALIFIED PLAN - A retirement plan under Sections 401, 403, 408 or 408A or
similar provisions of the Code.
<PAGE>
SPECIFIED CONTRACT ANNIVERSARY - Each consecutive six year anniversary date
measured from the date the Contract was issued. The Specified Contract
Anniversary is used to determine the Death Benefit payable if the
Contract Owner dies before the Annuity Commencement Date. (See "Death
Benefit Before the Annuity Commencement Date".)
SUB-ACCOUNT - That portion of the Variable Account which invests in shares of a
specific Investment Fund.
SUB-ACCOUNT ACCUMULATION UNIT - A unit of measure used to determine the Variable
Account Contract Value before annuity payments start.
SUCCESSOR BENEFICIARY - The person named to become the Beneficiary if the
Beneficiary is not alive.
VALUATION DATE - Each day on which the New York Stock Exchange is open for
business except for a day that a Sub-Account's corresponding Fund does
not value its shares. The New York Stock Exchange is currently closed
on weekends and on the following holidays: New Year's Day; Martin
Luther King Day; President's Day; Good Friday; Fourth of July; Labor
Day; Thanksgiving Day; and Christmas Day.
VALUATION PERIOD - The time interval between a Valuation Date and the next
Valuation Date.
VARIABLE ACCOUNT - A separate account of ReliaStar New York consisting of assets
set aside by ReliaStar New York, the investment performance of which is
kept separate from that of the general assets of ReliaStar New York.
VARIABLE ANNUITY - A series of periodic payments to the Contract Payee which
will vary in amount, primarily based on the investment results of the
Sub-Accounts under the Contract.
VARIABLE ANNUITY UNIT - A unit of measure used in the calculation of the second
and each subsequent variable annuity payment from the Variable Account.
SUMMARY OF CONTRACT EXPENSES
CONTRACT OWNER TRANSACTION EXPENSES
Sales Charge Imposed on Purchases...........................................None
Surrender Charge (as a percentage of amounts surrendered attributable to
purchase payments made in the last six Contract Years) (a)
CONTRACT YEAR OF SURRENDER MINUS CONTRACT SURRENDER CHARGE AS A PERCENTAGE OF
YEAR OF PURCHASE PAYMENT EACH PURCHASE PAYMENT
------------------------ ---------------------
0-1 6%
2-3 5
4-5 4
6 and later 0
Transfer Charge(b)..........................................................None
ANNUAL CONTRACT CHARGE.......................................................$30
VARIABLE ACCOUNT ANNUAL EXPENSES (as a percentage of average account value)
Mortality and Expense Risk Premiums........................................1.25%
Other Account Fees and Expenses (See "Administration Charge").............. .15%
Total Variable Account Annual Expenses.....................................1.40%
<PAGE>
ANNUAL INVESTMENT FUND EXPENSES AFTER REIMBURSEMENTS(d)(e)(f)(g)(h)(i):
(as a percentage of Investment Fund average net assets)
<TABLE>
<CAPTION>
TOTAL INVESTMENT
MANAGEMENT OTHER FUND ANNUAL
FEES EXPENSES EXPENSES
---- -------- --------
<S> <C> <C> <C>
THE ALGER AMERICAN FUND
Growth Portfolio(c) 0.75% 0.04% 0.79%
MidCap Growth Portfolio(c) 0.80% 0.04% 0.84%
Small Capitalization Portfolio(c) 0.85% 0.04% 0.89%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND (VIP):
VIP Equity-Income Portfolio(c)(d) 0.50% 0.08% 0.58%
VIP Growth Portfolio(c)(d) 0.60% 0.09% 0.69%
VIP High Income Portfolio(c) 0.59% 0.12% 0.71%
VIP Money Market Portfolio 0.21% 0.10% 0.31%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II (VIP II):
VIP II Contrafund Portfolio(c)(d) 0.60% 0.11% 0.71%
VIP II Index 500 Portfolio(c)(e) 0.24% 0.04% 0.28%
VIP II Investment Grade Bond Portfolio(c) 0.44% 0.14% 0.58%
JANUS ASPEN SERIES:
Aggressive Growth Portfolio(c)(f) 0.73% 0.03% 0.76%
Growth Portfolio(c)(f) 0.65% 0.05% 0.70%
International Growth Portfolio(c)(f) 0.67% 0.29% 0.96%
Worldwide Growth Portfolio(c)(f) 0.66% 0.08% 0.74%
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio(c)(j) 0.65% 0.12% 0.77%
Partners Portfolio(c)(j) 0.80% 0.06% 0.86%
NORTHSTAR GALAXY TRUST:
Growth + Value Portfolio(g) 0.75% 0.05% 0.80%
High Yield Bond Portfolio(g) 0.75% 0.05% 0.80%
Income and Growth Portfolio(g) 0.75% 0.05% 0.80%
International Value Portfolio(g) 0.75% 0.05% 0.80%
Multi-Sector Bond Portfolio(g) 0.75% 0.05% 0.80%
OCC ACCUMULATION TRUST:
Equity Portfolio(c)(h) 0.80% 0.19% 0.99%
Global Equity Portfolio(c)(h) 0.79% 0.40% 1.19%
Managed Portfolio(c)(h) 0.80% 0.07% 0.87%
Small Cap Portfolio(c)(h) 0.80% 0.17% 0.97%
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund(i) 0.69% 0.11% 0.80%
Putnam VT Growth and Income Fund(i) 0.47% 0.04% 0.51%
Putnam VT Voyager Fund(i) 0.54% 0.05% 0.59%
</TABLE>
The fee and expense information regarding the Investment Funds was
provided by the Funds.
Except for the Northstar Variable Trust, neither the Investment Funds
nor their Advisers are affiliated with ReliaStar New York.
<PAGE>
EXAMPLES
If you surrender your contract at the end of the applicable time
period, you would pay the following expenses on a $1,000 investment, assuming a
5% annual return on assets.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
THE ALGER AMERICAN FUND: $ $ $ $
Growth Portfolio 77 116 157 260
MidCap Growth Portfolio 77 117 160 265
Small Capitalization Portfolio 78 119 162 270
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio 75 110 147 239
VIP Growth Portfolio 76 113 152 250
VIP High Income Portfolio 76 113 153 252
VIP Money Market Portfolio 72 101 133 210
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund Portfolio 76 113 153 252
VIP II Index 500 Portfolio 72 100 131 207
VIP II Investment Grade Bond Portfolio 75 110 147 239
JANUS ASPEN SERIES:
Aggressive Growth Portfolio 77 115 156 257
Growth Portfolio 76 113 153 251
International Growth Portfolio 79 121 166 277
Worldwide Growth Portfolio 76 114 155 255
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio 78 118 161 267
Partners Portfolio 77 115 156 258
NORTHSTAR GALAXY TRUST:
Growth + Value Portfolio 77 116 158 261
High Yield Bond Portfolio 77 116 158 261
Income and Growth Portfolio 77 116 158 261
International Value Portfolio 77 116 158 261
Multi-Sector Bond Portfolio 77 116 158 261
OCC ACCUMULATION TRUST:
Equity Portfolio 79 122 167 280
Global Equity Portfolio 81 128 177 300
Managed Portfolio 78 118 161 268
Small Cap Portfolio 79 121 166 278
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund 77 116 158 261
Putnam VT Growth and Income Fund 74 107 143 231
Putnam VT Voyager Fund 75 110 147 240
</TABLE>
<PAGE>
If you annuitize your contract at the end of the applicable time
period, you would pay the following expenses on a $1,000 investment, assuming a
5% annual return on assets.*
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
THE ALGER AMERICAN FUND: $ $ $ $
Growth Portfolio 77 71 121 260
MidCap Growth Portfolio 77 72 124 265
Small Capitalization Portfolio 78 74 126 270
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio 75 65 111 239
VIP Growth Portfolio 76 68 116 250
VIP High Income Portfolio 76 68 117 252
VIP Money Market Portfolio 72 56 97 210
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund Portfolio 76 68 117 252
VIP II Index 500 Portfolio 72 55 95 207
VIP II Investment Grade Bond Portfolio 75 65 111 239
JANUS ASPEN SERIES:
Aggressive Growth Portfolio 77 70 120 257
Growth Portfolio 76 68 117 251
International Growth Portfolio 79 76 130 277
Worldwide Growth Portfolio 76 69 119 255
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio 78 73 125 267
Partners Portfolio 77 70 120 258
NORTHSTAR GALAXY TRUST:
Growth + Value Portfolio 77 71 122 261
High Yield Bond Portfolio 77 71 122 261
Income and Growth Portfolio 77 71 122 261
International Value Portfolio 77 71 122 261
Multi-Sector Bond Portfolio 77 71 122 261
OCC ACCUMULATION TRUST:
Equity Portfolio 79 77 131 280
Global Equity Portfolio 81 83 141 300
Managed Portfolio 78 73 125 268
Small Cap Portfolio 79 76 130 278
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund 77 71 122 261
Putnam VT Growth and Income Fund 74 62 107 231
Putnam VT Voyager Fund 75 65 111 240
</TABLE>
*If the Contract's Annuity Commencement Date occurs during the first two
Contract Years following the date the Contract was issued a Surrender Charge is
deducted and the expenses shown in year 1 reflect this deduction.
<PAGE>
If you do not surrender or annuitize your contract at the end of the
applicable time period, you would pay the following expenses on a $ 1,000
investment, assuming a 5% annual return on assets.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
THE ALGER AMERICAN FUND: $ $ $ $
Growth Portfolio 23 71 121 260
MidCap Growth Portfolio 23 72 124 265
Small Capitalization Portfolio 24 74 126 270
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio 21 65 111 239
VIP Growth Portfolio 22 68 116 250
VIP High Income Portfolio 22 68 117 252
VIP Money Market Portfolio 18 56 97 210
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund Portfolio 22 68 117 252
VIP II Index 500 Portfolio 18 55 95 207
VIP II Investment Grade Bond Portfolio 21 65 111 239
JANUS ASPEN SERIES:
Aggressive Growth Portfolio 23 70 120 257
Growth Portfolio 22 68 117 251
International Growth Portfolio 25 76 130 277
Worldwide Growth Portfolio 22 69 119 255
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio 24 73 125 267
Partners Portfolio 23 70 120 258
NORTHSTAR GALAXY TRUST:
Growth + Value Portfolio 23 71 122 261
High Yield Bond Portfolio 23 71 122 261
Income and Growth Portfolio 23 71 122 261
International Value Portfolio 23 71 122 261
Multi-Sector Bond Portfolio 23 71 122 261
OCC ACCUMULATION TRUST:
Equity Portfolio 25 77 131 280
Global Equity Portfolio 27 83 141 300
Managed Portfolio 24 73 125 268
Small Cap Portfolio 25 76 130 278
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund 23 71 122 261
Putnam VT Growth and Income Fund 20 62 107 231
Putnam VT Voyager Fund 21 65 111 240
</TABLE>
(a) In certain situations amounts can be surrendered without any surrender
charge. For more information on the Surrender Charge, see, "Surrender
Charge (Contingent Deferred Sales Charge)". ReliaStar New York reserves
the right to charge a partial surrender processing fee not to exceed
the lesser of 2% of the partial surrender amount or $25. For more
information on the processing fee, see "Surrender (Redemption)".
(b) ReliaStar New York currently does not impose a charge on transfers
between the Sub-Accounts or to the Fixed Account, although it reserves
the right to impose a charge not to exceed $25 per transfer.
<PAGE>
(c) ReliaStar New York or its affiliates may receive compensation from an
affiliate or affiliates of certain of the Funds based upon an annual
percentage of the average net assets held in that Fund by ReliaStar New
York and certain of its insurance company affiliates. The percentage
paid may vary from one Fund company to another. These amounts are
intended to compensate ReliaStar New York or its affiliates for
administrative, record keeping, distribution in some cases, and other
services provided by such parties to the Funds and/or the Funds'
affiliates. Currently, ReliaStar New York has service arrangements with
Fred Alger Management, Inc., Fidelity Management & Research Company,
Janus Capital, Neuberger&Berman Management, and OpCap Advisors.
Payments of such amounts by an affiliate or affiliates of the Funds do
not increase the fees paid by the Funds or their shareholders.
(d) A portion of the brokerage commissions that certain funds pay was used
to reduce fund expenses. In addition, certain funds have entered into
arrangements with their custodian whereby credits realized as a result
of uninvested cash balances were used to reduce custodian expenses.
Including these reductions, the total operating expenses presented in
the table would have been: .57% for VIP Equity-Income Portfolio, .67%
for VIP Growth Portfolio, and .68% for VIP II Contrafund Portfolio.
(e) FMR agreed to reimburse a portion of VIP II Index 500 Portfolio's
expenses during the period. Without this reimbursement, the funds'
management fee, other expenses and total expenses would have been .27%,
.13, and .40%, respectively. Expense reimbursements are voluntary.
There is no assurance of ongoing reimbursement.
(f) Management fees for Growth, Aggressive Growth, International Growth and
Worldwide Growth Portfolios reflect a reduced fee schedule effective
July 1, 1997. The management fee for each of these Portfolios reflects
the new rate applied to net assets as of December 31, 1997. Other
expenses are based on gross expenses of the Shares before expense
offset arrangements for the fiscal year ended December 31, 1997. The
information for each Portfolio is net of fee waivers or reductions from
Janus Capital. Fee reductions for the Growth, Aggressive Growth,
International Growth and Worldwide Growth Portfolios reduce the
management fee to the level of the corresponding Janus retail fund.
Other waivers, if applicable, are first applied against the management
fee and then against other expenses. Without such waivers or
reductions, the Management Fee, Other Expenses and Total Operating
Expenses for the Shares would have been 0.74%, 0.04%, and 0.78% for
Growth Portfolio; 0.74%, 0.04%, and 0.78% for Aggressive Growth
Portfolio; 0.79%, 0.29% and 1.08% for International Growth Portfolio;
and 0.72%, 0.09% and 0.81% for Worldwide Growth Portfolio,
respectively. Janus Capital may modify or terminate the waivers or
reductions at any time upon at least 90 days' notice to the Trustees.
(g) The investment adviser to the Northstar Galaxy Trust has agreed to
reimburse the five Northstar Portfolios for any expenses in excess of
0.80% of each Portfolio's average daily net assets. In the absence of
the investment adviser's expense reimbursements, the Total Investment
Fund Annual Expenses that would have been paid by each Portfolio during
its fiscal year ended December 31, 1997 would have been: Northstar
Galaxy Trust Growth + Value Portfolio: 1.09%; Northstar Galaxy Trust
High Yield Bond Portfolio: 1.35%; Northstar Galaxy Trust Income and
Growth Portfolio: 1.11%; Northstar Galaxy Trust Multi-Sector Bond
Portfolio: 1.36%. For the Northstar Galaxy Trust International Value
Portfolio, on an annualized basis, absent expense reimbursement, the
actual expenses for this Portfolio are estimated to be 2.61%. Expense
reimbursements are voluntary. There is no assurance of ongoing
reimbursement.
(h) The annual Other Expenses of OCC Accumulation Trust Portfolios are
shown gross of certain expense offsets afforded the Portfolios which
effectively lowered overall custody expenses. Total Portfolio Expenses
for the Equity, Small Cap and Managed Portfolios are limited by OpCap
Advisors so that their respective annualized operating expenses (net of
any expense offsets) do not exceed 1.00% of average daily net assets.
Total Portfolio Expenses for the Global Equity Portfolio are limited
to 1.25% of average daily net assets. Without such limitation and
without giving effect to any expense offsets, the Management Fees,
Other Expenses and Total Portfolio Expenses incurred for the fiscal
year ended December 31, 1997 would have been: .80%, .19% and .99%,
respectively, for the Equity Portfolio, .80%, .17% and .97%,
respectively, for the Small Cap Portfolio, .80%, .07% and .87%,
respectively, for the Managed Portfolio and .80%, .40% and 1.20%,
respectively, for the Global Equity Portfolio.
(i) The expenses shown in the table do not reflect the application of
credits related to brokerage service and expense offset arrangements
that reduce certain fund expenses.
(j) Neuberger&Berman Advisers Management Trust is divided into portfolios
("Portfolios"), each of which invests all of its net investable assets
in a corresponding series ("Series") of Advisers Managers Trust, which
in this case are AMT Limited Maturity Bond Investments and AMT Partners
Investments. The figures reported under "Management Fees" include the
aggregate of the adminstration fees paid by the Portfolio and the
management fees paid by its corresponding Series. Similarly, "Other
Expenses" includes all other expenses of the Portfolio and its
corresponding Series.
<PAGE>
THE EXAMPLES SHOWN IN THE TABLE ABOVE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS
THAN THOSE SHOWN. THE 5% ANNUAL RETURN ASSUMED IS HYPOTHETICAL AND SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE ANNUAL RETURNS, WHICH MAY BE
GREATER OR LESS THAN THE ASSUMED RATE.
The purpose of this table is to assist you in understanding the various
costs and expenses that you will bear either directly or indirectly. The table
reflects the expenses of the Variable Account as well as those of the Investment
Funds. The $30 Annual Contract Charge is reflected as an annual percentage
charge in this table based on the anticipated average net assets in the Variable
Account and Fixed Account, which translates to a charge equal to an annual rate
of ___% of the Variable Account and Fixed Account values. There is an
accumulation unit value history contained in Appendix B--Condensed Financial
Information.
In addition to the costs and expenses shown in this table, state
premium taxes may also be applicable. For more information on state premium
taxes, see "Premium and Other Taxes".
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
We are a stock life insurance company incorporated under the laws of
the State of New York in 1917 under the name The Morris Plan Insurance Society.
In 1946 we addopted the name Bankers Security Life Insurance Society, in 1996 we
addopted the name ReliaStar Bankers Security Life Insurance Company, and in 1998
we adopted our present name. We are authorized to transact business in all
states, the District of Columbia, and the Dominican Republic. We are a
wholly-owned subsidiary of ReliaStar Financial Corp., a holding company whose
subsidiaries specialize in life insurance and related financial services
businesses.
Our principal office is located at 1000 Woodbury Road, Suite 102, P.O.
Box 9004, Woodbury, New York 11797.
We may from time to time publish in advertisements, sales literature,
and reports, the ratings and other information assined to us by one or more
independent rating organizations such as A.M. Best Company, Standard & Poor's,
Moody's, and Duff & Phelps. The purpose of the ratings is to reflect our
financial strength and/or claims-paying ability and should not be considered as
bearing on the investments held in the Variable Account. Each year thee A.M.
Best Company reviews the financial status of many insurers, culminating in the
assignment of Best's Ratings. These ratings reflect their current opinion of the
relative financial strength and operating performance of an insurance copany in
comparison to the norms of the life/health insurance industry. We have been
assigned a rating of A+ by A.M. Best, which is a rating assigned to companies
demostrating superior overall performance and a very strong ability to meet
obligations to Policy holders over a long period.
THE VARIABLE ACCOUNT
The Variable Account is a separate account of ReliaStar New York
established by the Board of Directors of ReliaStar New York on June 15, 1998,
pursuant to the laws of the State of New York. The Variable Account is
registered with the Securities and Exchange Commission as a unit investment
trust under the Investment Company Act of 1940, as amended ("1940 Act"). Such
registration does not involve supervision by the Commission of the management or
investment policies or practices of the Variable Account, ReliaStar New York or
the Portfolios. ReliaStar New York has complete ownership and control of the
assets in the Variable Account, but these assets are held separately from
ReliaStar New York's other assets and are not part of ReliaStar New York's
General Account.
The portion of the assets of the Variable Account equal to the reserves
and other contract liabilities of the Variable Account will not be charged with
liabilities incurred in any other business that ReliaStar New York may conduct.
ReliaStar New York has the right to transfer to its General Account any assets
of the Variable Account which are in excess of such reserves and other
liabilities. The income, if any, and gains, and losses, realized or unrealized,
of the Variable Account will be credited to or charged against the Variable
Account in accordance with the contracts supported by the Variable Account,
without regard to the other income, gains or losses of ReliaStar New York.
Purchase payments allocated to the Variable Account under a Contract
are invested in one or more Sub-Accounts of the Variable Account, as selected by
you, the Owner. The future Variable Account Contract Value depends primarily on
the investment performance of the Investment Funds whose shares are held in the
Sub-Accounts selected.
INVESTMENTS OF THE VARIABLE ACCOUNT
When you apply for a Contract, you can allocate purchase payments to
one or more of the Sub-Accounts. There are currently 28 Sub-Accounts.
Each Sub-Account invests in shares of one of the Investment Funds at its net
asset value. As Owner, you can change a purchase payment allocation for future
purchase payments and can transfer all or part of the values in a Sub-Account to
another Sub-Account. However, you are only permitted to participate in a maximum
of 17 Sub-Accounts over the lifetime of your Contract. Upon participation
in the seventeenth Sub-Account since the issue of the Contract you would only be
able to transfer within the 17 Sub-Accounts already utilized and which
are still available. For example, assume that you select seven investment
options. Later you transfer out of all of your seven
<PAGE>
initial selections and choose 10 different options, none of which are the same
as your original seven selections. You have now used your maximum selection of
17 Sub-Accounts. You can still allocate purchase payments or transfers among any
of the 17 Sub-Accounts you have previously selected. However, you cannot
allocate funds to the remaining Sub-Accounts. An Owner may make partial or
complete transfers to the Fixed Account from the Variable Account at any time.
The following are the investment advisers for the Investment Funds. The
advisers are paid fees for their services by the Funds they manage. Fred Alger
Management, Inc. is the investment adviser for the three portfolios of The Alger
American Fund; Fidelity Management & Research Company ("FMR") is the investment
adviser for the four portfolios of Fidelity's Variable Insurance Products Fund
(VIP) and for the three portfolios of Fidelity's Variable Insurance Products
Fund II (VIP II); Janus Capital Corporation ("Janus Capital") is the investment
adviser for the four portfolios of Janus Aspen Series; Neuberger&Berman
Management Inc., with the assistance of Neuberger&Berman, LLC as sub-adviser, is
the investment manager for AMT Partners Investments and AMT Limited Maturity
Bond Investments of the Advisers Managers Trust (in which AMT Partners Portfolio
and AMT Limited Maturity Portfolio invest all of their net investable assets,
respectively); Northstar Investment Management Corporation, an affiliate of
ReliaStar New York, is the investment adviser for the five funds of the
Northstar Galaxy Trust. The Northstar Galaxy Trust Growth + Value Portfolio is
sub-advised by Navellier Fund Management, Inc. and the Northstar Galaxy Trust
International Value Portfolio is sub-advised by Brandes Investment Partners,
L.P. OpCap Advisors is the investment adviser for the four portfolios of the OCC
Accumulation Trust; and Putnam Investment Management, Inc. ("Putnam Management")
is the investment adviser for the three portfolios of Putnam Variable Trust.
The Investment Funds currently offered, and the investment objective of
each, are named below. More detailed information about the Investment Funds can
be found in the current prospectus and Statement of Additional Information for
each Investment Fund. These prospectuses accompany this Prospectus in a book
entitled "Select*Product Investment Options." The Investment Fund prospectuses
should be read carefully before any allocation to, or transfers among, the
Sub-Accounts.
FUND DESCRIPTIONS
<TABLE>
<CAPTION>
INVESTMENT FUNDS INVESTMENT OBJECTIVE
- ------------------ --------------------
<S> <C>
THE ALGER AMERICAN FUND:
Growth Portfolio Long-term capital appreciation
MidCap Growth Portfolio Long-term capital appreciation
Small Capitalization Portfolio Long-term capital appreciation
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio Reasonable income; capital appreciation
VIP Growth Portfolio Capital appreciation
VIP High Income Portfolio High current income
VIP Money Market Portfolio Income while maintaining stable $1.00
share price
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund Portfolio Capital appreciation
VIP II Index 500 Portfolio Total return that corresponds to that of
the Standard & Poor's 500 Index
VIP II Investment Grade Bond Portfolio High current income
JANUS ASPEN SERIES:
Aggressive Growth Portfolio Long-term capital growth
Growth Portfolio Long-term capital growth
International Growth Portfolio Long-term capital growth
Worldwide Growth Portfolio Long-term capital growth
NEUBERGER&BERMAN ADVISERS MANAGEMENT TRUST ("AMT"):
Limited Maturity Bond Portfolio Highest current income consistent with
low risk to principal and liquidity, and
secondarily, total return
Partners Portfolio Capital growth
<PAGE>
NORTHSTAR GALAXY TRUST (NORTHSTAR):
Growth + Value Portfolio Long-term capital growth
High Yield Bond Portfolio High current yield and capital
appreciation
Income and Growth Portfolio Consistent level of income;
capital appreciation
International Value Portfolio Long-Term capital appreciation
Multi-Sector Bond Portfolio Current income; capital preservation
OCC ACCUMULATION TRUST:
Equity Portfolio Long-term capital appreciation
Global Equity Portfolio Long-term capital appreciation
Managed Portfolio Capital growth
Small Cap Portfolio Capital appreciation
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund Capital growth; current income
Putnam VT Growth and Income Fund Capital growth; current income
Putnam VT Voyager Fund Capital appreciation
</TABLE>
THERE IS NO ASSURANCE THAT THE STATED OBJECTIVES AND POLICIES OF ANY OF THE
INVESTMENT FUNDS WILL BE ACHIEVED.
ReliaStar New York reserves the right, subject to compliance with the
law, to offer additional Investment Funds.
The Investment Funds are available to registered separate accounts of
ReliaStar New York and to insurance companies other than ReliaStar New York,
offering variable annuity contracts and variable life insurance policies.
ReliaStar New York currently does not foresee any disadvantages to Owners
resulting from the Investment Funds selling shares to fund products other than
the Contracts. However, there is a possibility that a material conflict may
arise between Owners whose Contract Values are allocated to the Variable Account
and the owners of variable life insurance policies and variable annuity
contracts issued by ReliaStar New York or by such other companies whose assets
are allocated to one or more other separate accounts investing in any one of the
Investment Funds. In the event of a material conflict, ReliaStar New York will
take any necessary steps, including removing the Variable Account from that
Investment Fund, to resolve the matter. The Board of Directors or Trustees of
each Investment Fund will monitor events in order to identify any material
conflicts that possibly may arise and determine what action, if any, should be
taken in response to those events or conflicts. See each individual Investment
Fund prospectus for more information.
REINVESTMENT
The Investment Funds described above have as a policy the distribution
of income, dividends and capital gains. However, under the Contracts there is an
automatic reinvestment of such distributions.
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENT FUND SHARES
ReliaStar New York reserves the right, subject to compliance with
applicable law and, if required, approval by the Insurance Department, to make
additions to, deletions from, or substitutions for the shares that are held in
the Variable Account or that the Variable Account may purchase. If the shares of
a portfolio of an Investment Fund are no longer available for investment or if
in ReliaStar New York's judgment further investment in any portfolio of an
Investment Fund should become inappropriate in view of the purposes of the
Variable Account, or because, in our sole discretion, of marketing, tax,
regulatory requirements or investment conditions, ReliaStar New York may redeem
the shares of that portfolio and substitute shares of another registered
open-end investment company. ReliaStar New York will not substitute any shares
attributable to a Contract's interest in a Sub-Account of the Variable Account
without notice and prior approval of the SEC and state insurance authorities, to
the extent required by applicable law.
<PAGE>
ReliaStar New York also reserves the right to establish
additional Sub-Accounts of the Variable Account, each of which would invest in
shares corresponding to a new or another investment company portfolio or delete
Sub-Accounts pursuant to the process described in this section. Subject to
applicable law and any required SEC approval, ReliaStar New York may, in
its sole discretion, establish new Sub-Accounts or eliminate one or more
Sub-Accounts if marketing needs, tax or regulatory considerations or investment
conditions warrant. Any new Sub-Accounts may be made available to existing
Contract Owners on a basis to be determined by ReliaStar New York.
In the event of any such substitution, deletion or change, ReliaStar
New York may make such changes in this and other contracts as may be necessary
or appropriate to reflect such substitution, deletion or change. If all or a
portion of your investments are allocated to any of the current funds that are
being substituted for or deleted on the date such action is announced, you may
transfer the portion of the Accumulation Value affected without payment of a
transfer charge to available Sub-Accounts.
If deemed by us to be in the best interests of persons having voting
rights under the Contracts, the Variable Account may be operated as a management
company under the Investment Company Act of 1940, it may be deregistered under
that Act in the event such registration is no longer required, or it may be
combined with other separate accounts of ReliaStar New York.
CHARGES MADE BY RELIASTAR NEW YORK
SURRENDER CHARGE (CONTINGENT DEFERRED SALES CHARGE)
No deduction for a sales charge is made from purchase payments.
However, a surrender charge (which may be deemed a contingent deferred sales
charge) may be assessed. This charge, is intended to reimburse ReliaStar New
York for expenses relating to the sale of the Contracts, including commissions
to sales personnel, costs of sales material and other promotional activities and
sales administration costs.
If part or all of a Contract's value is surrendered, or, if the
Contract's Annuity Commencement Date occurs within the first two years after the
Contract is issued, surrender charges may be made by ReliaStar New York.
For purposes of determining surrender charges, surrenders shall first
be taken from Old Purchase Payments until they are exhausted, then from New
Purchase Payments until they are exhausted, and thereafter from Contract
Earnings. "New Purchase Payments" are those Contract purchase payments received
by ReliaStar New York during the Contract Year in which the surrender occurs or
in the five immediately preceding Contract Years; "Old Purchase Payments" are
those Contract purchase payments not defined as New Purchase Payments; and
"Contract Earnings" at any Valuation Date is the Contract Value less the sum of
New Purchase Payments and Old Purchase Payments.
Surrenders taken from the following amounts ("Free Surrenders") are not
subject to a surrender charge during any Contract Year: (a) any Old Purchase
Payments not already surrendered; (b) 10% of all New Purchase Payments that have
been received by ReliaStar New York (with the exception of Systematic
Withdrawals, this does not apply to surrenders made during the first Contract
Year nor to any surrenders after the first surrender made in each Contract Year
thereafter); and (c) any Contract Earnings being surrendered.
TOTAL SURRENDERS - The surrender charge for a total surrender is
determined by multiplying the amount of each New Purchase Payment surrendered,
that is not eligible for a free surrender, by the applicable surrender charge
percentage as set forth in the following table:
<PAGE>
SURRENDER CHARGE PERCENTAGE TABLE
---------------------------------
CONTRACT YEAR OF SURRENDER SURRENDER CHARGE AS A
MINUS CONTRACT YEAR OF PERCENTAGE OF EACH
PURCHASE PAYMENT PURCHASE PAYMENT
---------------- ----------------
0-1 6%
2-3 5
4-5 4
6 and later 0
PARTIAL SURRENDERS - The amount of the partial surrender subject to a
surrender charge is determined by dividing (a) the portion of each New Purchase
Payment to be surrendered which is not eligible for a Free Surrender by (b) one
minus the applicable surrender charge percentage from the Surrender Charge
Percentage Table set forth above. The resulting amount for each New Purchase
Payment to be surrendered is then multiplied by the applicable surrender charge
percentage from the Surrender Charge Percentage Table shown above to arrive at
the amount of surrender charge to be assessed. The total of the amount
surrendered will be subject to the surrender charge.
If the surrender charge is less than the Contract Value that remains
immediately after surrender, it will be deducted proportionately from the
Sub-Accounts that make up such Contract Value. If the surrender charge is more
than such remaining Contract Value, the portion of the surrender charge that can
be deducted from such remaining Contract Value will be so deducted and the
balance will be deducted from the surrender payment. In computing surrenders,
any portion of a surrender charge that is deducted from the remaining Contract
Value will be deemed a part of the surrender.
ANNUAL CONTRACT CHARGE
Each year on the Contract Anniversary, ReliaStar New York deducts an
Annual Contract Charge of $30 from the Contract Value. ReliaStar New York will
not increase the Annual Contract Charge. In any Contract Year when a Contract is
surrendered for its full value on other than the Contract Anniversary, the
Annual Contract Charge will be deducted at the time of such surrender. If a
fixed annuity payment or a variable annuity payment is selected, then the Annual
Contract Charge will be assessed and deducted in equal installments from each
annuity payment. When more than one annuity is selected, then a separate Annual
Contract Charge will be assessed against each annuity.
Waiver of Charges
ReliaStar New York reserves the right to waive the Annual Contract
Charge where the cumulative purchase payments, less any cumulative partial
surrenders, exceed $50,000. ReliaStar New York reserves the right to reinstate
the Annual Contract Charge on Contracts previously qualifying for the waiver, if
the cumulative purchase payments, less any cumulative partial surrenders, equals
or falls below $50,000 or if ReliaStar New York withdraws the waiver of the
Charge. ReliaStar New York will not waive the Annual Contract Charges assessed
and deducted from annuity payments.
Under certain circumstances as defined in the Contract and the Rider(s)
related to the provisions below, beginning one year after the effectiveness of
the Rider(s) ReliaStar New York will permit the Contract Owner to access his or
her money in the Contract. ReliaStar New York will permit a full or partial
surrender without a surrender charge if (1) the Contract Owner becomes
terminally ill; (2) if the Contract Owner becomes confined to a skilled nursing
facility or hospital; and (3) if and so long as the Contract Owner is disabled.
If the Contract Owner is unemployed for at least 90 consecutive days the Owner
can take, on a one time basis, up to 50% of the Contract Value of the Contract
without incurring a surrender charge.
These waivers are subject to the specific provisions of the Rider(s)
and may not be available in all states.
MORTALITY RISK PREMIUM
The variable annuity payments made to Annuitants will vary in
accordance with the investment performance of the Sub-Accounts selected by the
Owner. However, they will not be affected by the mortality experience (death
rate) of persons receiving annuity payments from the Variable Account. ReliaStar
New York assumes this "mortality risk" and has guaranteed the annuity rates
incorporated in the Contract, which cannot be changed.
To compensate ReliaStar New York for assuming this mortality risk and
the mortality risk that Beneficiaries of Annuitants dying before the Annuity
Commencement Date may receive amounts in excess of the then current Contract
Value (see "Death Benefit Before the Annuity Commencement Date"), ReliaStar New
York deducts a Mortality Risk Premium from the Variable Account Contract Value.
The deduction is made daily in an amount that is equal to an annual rate of
0.85% of the daily Contract Values under the Variable Account. ReliaStar New
York may not change the rate charged for the Mortality Risk Premium under any
Contract.
<PAGE>
EXPENSE RISK PREMIUM
ReliaStar New York will not increase charges for administrative
expenses regardless of its actual expenses. To compensate ReliaStar New York for
assuming this expense risk, ReliaStar New York deducts an Expense Risk Premium
from the Variable Account Contract Value. The deduction is made daily in an
amount that is equal to an annual rate of 0.40% of the daily Variable Account
Contract Values. ReliaStar New York may not change the rate of the Expense Risk
Premium under any Contract.
ADMINISTRATION CHARGE
ReliaStar New York deducts a daily Administration Charge from the
Variable Account Contract Value in an amount equal to an annual rate of 0.15% of
the daily Contract Values under the Variable Account. This charge is deducted to
reimburse ReliaStar New York for the cost of providing administrative services
under the Contracts and the Variable Account. ReliaStar New York may not change
the rate of the Administration Charge under any Contract.
PREMIUM AND OTHER TAXES
Various states and other governmental entities levy a premium tax,
currently ranging up to 3.5%, on annuity contracts issued by insurance
companies. If the Owner of the Contract lives in a governmental jurisdiction
that levies such a tax, ReliaStar New York will pay the taxes when due and
reserves the right to deduct the amount of the tax either from purchase payments
as they are received or from the Contract Value at the Annuity Commencement Date
(immediately before the Contract Value is applied to an Annuity Form) as
permitted or required by applicable law.
Premium tax rates are subject to change from time to time by
legislative and other governmental action. The timing of tax levies also varies
from one taxing authority to another. Consequently, in many cases the purchaser
of a Contract will not be able to accurately determine the premium tax
applicable to the Contract. ReliaStar New York reserves the right to deduct
charges for any other tax or economic burden resulting from the application of
the tax laws that it determines to be applicable to the Contract.
REDUCTION OR WAIVER OF CHARGES
Any of the charges under the Contract, as well as the minimum purchase
payment requirements set forth in this Prospectus, may be reduced due to special
circumstances that result in lower sales, administrative or mortality expenses.
For example, special circumstances may exist in connection with group or
sponsored arrangements, sales to ReliaStar New York's policy and Contract Owners
or those of affiliated insurance companies, or sales to employees or clients of
ReliaStar New York or its affiliates. The amount of any reductions will reflect
the reduced sales effort and administrative costs resulting from, or the
different mortality experience expected as a result of, the special
circumstances. Reductions will not be unfairly discriminatory against any
person, including the affected policy or Contract owners and owners of all other
contracts funded by the Variable Account.
EXPENSES OF THE INVESTMENT FUNDS
There are fees deducted from and expenses paid out of the assets of the
Investment Funds that are described in the accompanying prospectuses for the
Funds.
ADMINISTRATION OF THE CONTRACTS
ReliaStar New York assumes the responsibilities of performing certain
administrative functions relating to the Contracts and the Variable Account.
These functions include, among other things, maintaining the books and records
of the Variable Account and the Sub-Accounts, and maintaining records of the
name, address, taxpayer identification number, Contract
<PAGE>
number, type of Contract issued to each Owner, Contract Value and other
pertinent information necessary to the administration and operation of the
Contracts.
THE CONTRACTS
The Contracts are designed for sale as non-qualified contracts and also
for retirement plans which may be Qualified Plans. A single purchase payment can
be made for a deferred annuity, or subsequent purchase payments can be made up
to the maximum level of funding set forth below. The minimum amount ReliaStar
New York will accept as an initial purchase payment is $5,000 for Non-Qualified
Contracts and $2,000 for Qualified Contracts. ReliaStar New York may choose not
to accept any subsequent purchase payment for a Non-Qualified Contract if it is
less than $500 and for a Qualified Contract if it is less than $200. ReliaStar
New York may also choose not to accept any subsequent purchase payment if the
purchase payment together with the Contract Value at the next Valuation Date
exceeds $1,000,000. Any purchase payment not accepted by ReliaStar New York will
be refunded. ReliaStar New York reserves the right to accept smaller or larger
initial and subsequent purchase payments in connection with special
circumstances, such as sales through group or sponsored arrangements.
ALLOCATION OF PURCHASE PAYMENTS
Purchase payments can be allocated by the Owner in up to 17 of the
available Sub-Accounts of the Variable Account selected and/or to the Fixed
Account. (See Appendix A). Any purchase payment or portion thereof for which no
allocation election is made will be returned to the Owner.
The initial purchase payment will be allocated not later than two
business days after receipt, if the application and all information necessary
for processing the Contract are complete. ReliaStar New York may retain purchase
payments for up to five business days while attempting to complete an incomplete
application. If the application cannot be made complete within this period, the
applicant will be informed of the reasons for the delay and the purchase payment
will be returned immediately. Once the completed application is received, the
payment must be allocated within two business days. ReliaStar New York will make
inquiry to discover any missing information related to subsequent payments.
For any subsequent purchase payments, the payments will be credited at the
Sub-Account Accumulation Unit Value next determined after receipt of the
purchase payment.
Upon allocation to Sub-Accounts of the Variable Account, a purchase
payment is converted into Accumulation Units of the Sub-Account. The amount of
the purchase payment allocated to a particular Sub-Account is divided by the
value of an Accumulation Unit for the Sub-Account to determine the number of
Accumulation Units of the Sub-Account to be held in the Variable Account with
respect to the Contract. The net investment results of each Sub-Account vary
primarily with the investment performance of the Investment Fund whose shares
are held in the Sub-Account.
An Investment Fund may impose a minimum purchase requirement. If that
minimum purchase requirement exceeds the aggregate of all purchase payments
received by ReliaStar New York, less any redemption of Investment Fund shares
resulting from transfers or surrenders, on any given day that are to be applied
to a Sub-Account for the purchase of shares of such Investment Fund, such
purchase payments will be refunded.
SUB-ACCOUNT ACCUMULATION UNIT VALUE
The Unit Value for a Sub-Account on any Valuation Date is equal to the
previous Unit Value multiplied by the Net Investment Factor for that Sub-Account
for the Valuation Period ending on that Valuation Date. The value of each
Sub-Account Accumulation Unit will vary up or down according to a Net Investment
Factor, which is primarily based on the investment performance of the applicable
Investment Fund. Investment Fund shares in the Sub-Accounts will be valued at
their net asset value.
Dividend and capital gain distributions from an Investment Fund will be
automatically reinvested in additional shares of such Investment Fund and
allocated to the appropriate Sub-Account. The number of Sub-Account Accumulation
Units does not increase because of the additional shares, but the Accumulation
Unit value may increase.
<PAGE>
NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance during a Valuation Period of
the Investment Fund whose shares are held in the particular Sub-Account. If the
Net Investment Factor is greater than one, the value of a Sub-Account
Accumulation Unit has increased. If the Net Investment Factor is less than one,
the value of a Sub-Account Accumulation Unit has decreased. The Net Investment
Factor is determined by dividing (1) by (2) then subtracting (3) from the
result, where:
(1) is the net result of:
(a) the net asset value per share of the Investment Fund
shares held in the Sub-Account, determined at the end
of the current Valuation Period, plus
(b) the per share amount of any dividend or capital gain
distributions made on the Investment Fund shares held
in the Sub-Account during the current Valuation
Period, plus or minus
(c) a per share charge or credit for any taxes reserved
for which ReliaStar New York determines to have
resulted from the investment operations of the Sub-
Account and to be applicable to the Contract;
(2) is the net result of:
(a) the net asset value per share of the Investment Fund
shares held in the Sub-Account, determined at the end
of the last prior Valuation Period, plus or minus
(b) a per share charge or credit for any taxes reserved
for during the last prior Valuation Period which
ReliaStar New York determines to have resulted from
the investment operations of the Sub-Account and to
be applicable to the Contract; and
(3) is a factor representing the Mortality Risk Premium, the
Expense Risk Premium and the Administration Charge deducted
from the Sub-Account which factor is equal, on an annual
basis, to 1.40% of the daily net asset value of the
Sub-Account.
DEATH BENEFIT BEFORE THE ANNUITY COMMENCEMENT DATE
If the Owner, including any joint Owner, dies before the Annuity
Commencement Date, the Beneficiary will be entitled to receive the Death
Benefit. For this purpose the Death Benefit will be:
(1) if any Owner (including the Annuitant) dies on or before the
first day of the month following the Owner's 85th birthday,
the greater of (i) the Contract Value on the Death Benefit
Valuation Date, or (ii) the sum of the purchase payments
received by ReliaStar Life under the Contract to the Death
Benefit Valuation Date, less any surrender payments previously
made by ReliaStar Life; or (iii) the Contract Value on the
Specified Contract Anniversary (immediately preceding the
Owner's death), plus any Purchase Payments and reduced by any
surrender payments since that anniversary;
(2) if any Owner (including the Annuitant) dies after the first
day of the month following the Owner's 85th birthday, the
Contract Value on the Death Benefit Valuation Date.
If a single sum is requested, it will be paid within seven days after
the Death Benefit Valuation Date. If an Annuity Form is requested, it may be any
Annuity Form permitted by Section 72(s) of the Code and which ReliaStar New York
is willing to issue. An Annuity Form selection must be in writing and must be
received by ReliaStar New York within 60 days after the date of the Owner's
death, otherwise the Death Benefit as of the Death Benefit Valuation Date will
be paid in a single sum to the Beneficiary and the Contract will be canceled.
<PAGE>
If the only Beneficiary is the Owner's surviving spouse, such spouse
may continue the Contract as the Owner, and then (1) select a single sum
payment, or (2) select any Annuity Form which does not exceed such spouse's life
expectancy.
If the Beneficiary elects to receive annuity payments under an Annuity
Form, the amount and duration of payments may vary depending on the Annuity Form
selected and whether fixed and/or variable annuity payments are requested. (See
"Annuity Provisions.")
DEATH BENEFIT AFTER THE ANNUITY COMMENCEMENT DATE
If the Annuitant dies after the Annuity Commencement Date, the Death
Benefit, if any, shall be as stated in the Annuity Form in effect.
SURRENDER (REDEMPTION)
If a written request is received by ReliaStar New York from the Owner
before the Annuity Commencement Date, all or part of the Contract Value will be
paid to the Owner after deducting any applicable surrender charge and taxes.
(See "Surrender Charge (Contingent Deferred Sales Charge)".) Partial surrenders
must be at least $500. No partial surrender can cause the Contract Value to fall
below $1,000. If a total surrender occurs other than on a Contract Anniversary
the Annual Contract Charge will be deducted from the Contract Value before the
surrender payment is made.
Surrenders must be consented to by each collateral assignee. ReliaStar
New York reserves the right to require that surrenders in excess of $50,000 be
signature guaranteed by a member firm of the New York, American, Boston,
Midwest, Philadelphia, or Pacific Stock Exchange, or by a commercial bank (not a
savings bank) which is a member of the Federal Deposit Insurance Corporation,
or, in certain cases, by a member firm of the National Association of Securities
Dealers, Inc. that has entered into an appropriate agreement with ReliaStar
Life.
ReliaStar New York may require that the Contract be returned before a
surrender takes place. A surrender will take place on the next Valuation Date
after the requirements for surrender are completed and payment will be made
within seven days after such Valuation Date. Unless the Owner requests a partial
surrender to be made from the Fixed Account or particular Sub-Accounts, a
partial surrender will be taken proportionately from the Fixed Account and all
Sub-Accounts on a basis that reflects their proportionate percentage of the
Contract Value.
ReliaStar New York reserves the right to limit the number of partial
surrenders, and to assess a processing fee not to exceed the lesser of 2% of the
partial surrender amount or $25. No processing fee will be charged in connection
with total surrenders.
If the Contract Value after all charges is less than $1,000, ReliaStar
New York can cancel the Contract on any Contract Anniversary, or if such
Contract Anniversary is not a Valuation Date, on the next Valuation Date
thereafter, by paying to the Owner the Contract Value as of such Valuation Date.
If the Contract is purchased as a "tax-sheltered annuity" under Section
403(b) of the Internal Revenue Code (the "Code"), it is subject to certain
restrictions on redemption imposed by Section 403(b)(11) of the Code. (See
"Tax-Sheltered Annuities".)
Surrender payments may be taxable and in addition may be subject to a
10% tax penalty if before age 59 1/2. Consideration should be given to the tax
implications of a surrender before making a surrender request, including a
surrender in connection with a Qualified Plan.
SYSTEMATIC WITHDRAWALS
Systematic Withdrawals, which are a specialized form of Partial
Surrenders (See "Surrender (Redemption)."), are offered for both Qualified Plan
Contracts and for Non-Qualified Contracts. The Owner may elect to take
Systematic Withdrawals from Sub-Accounts by surrendering a specified dollar
amount or percentage of cumulative purchase payments on a monthly, quarterly,
semi-annual or annual basis. Systematic Withdrawals can be taken from Variable
Account Contract
<PAGE>
Value and/or Fixed Account Contract Value, but are limited annually to 10% of
total cumulative purchase payments made under the Contract. A Surrender Charge
will be imposed on the amount of any Systematic Withdrawal, which is not a Free
Surrender. (See "Surrender Charge (Contingent Deferred Sales Charge).")
Systematic Withdrawals can be discontinued by the Owner at any time by notifying
ReliaStar New York in writing.
ReliaStar New York reserves the right to modify or discontinue offering
Systematic Withdrawals, however, any such modification or discontinuation will
not affect any Systematic Withdrawal programs already commenced. While ReliaStar
New York does not currently charge a processing fee for Partial Surrenders under
this program, it reserves the right to charge a processing fee not to exceed the
lesser of 2% of the Systematic Withdrawal payment or $25.
Systematic Withdrawals may be subject to tax, including a penalty tax,
and you should consult with your tax advisor before requesting any Systematic
Withdrawal. (See "Taxation of Annuities".)
Contract Owners interested in participating in the Systematic
Withdrawal program can obtain a separate application form and full information
about the program and its restrictions from their registered representative.
TRANSFERS
Before the Annuity Commencement Date, the Owner can transfer amounts
between Sub-Accounts or from the Sub-Accounts to the Fixed Account. Subject to
certain restrictions, amounts can also be transferred from the Fixed Account to
the Sub-Accounts. Currently, there are our methods by which transfers may be
made: in writing, by telephone or fax, by Dollar Cost Averaging and by Portfolio
Rebalancing.
WRITTEN TRANSFERS - Before the Annuity Commencement Date the Owner may
request a transfer in writing, subject to any conditions or charges the
Investment Funds whose shares are involved may impose, of all or part of a
Sub-Account's value to other Sub-Accounts or to the Fixed Account. The transfer
will be made on the first Valuation Date after the request for such a transfer
is received by ReliaStar New York. Currently, there is no charge for such a
transfer, other than those that may be made by the Funds. ReliaStar New York
reserves the right, however, to charge a transfer fee not to exceed $25 per
transfer and to limit the number of transfers made by the Owner. After the
Annuity Commencement Date, an Annuitant who has selected Variable Annuity
Payments can request transfer of Annuity Unit values in the same manner and
subject to the same requirements as for an Owner-transfer of Sub-Account
Accumulation Unit values. However, no transfers can be made to the Fixed Account
after the Annuity Commencement Date.
Before the Annuity Commencement Date, transfers may also be made from
the Fixed Account to the Variable Account, provided, that (a) transfers may only
be made during the period starting 30 days before and ending 30 days after the
Contract Anniversary, and only one transfer may be made during each such period,
(b) no more than 50% of the Fixed Account Contract Value may be the subject of
any such transfer (unless the balance, after such transfer, would be less than
$1,000, in which case the full Fixed Account Contract Value may be transferred),
and (c) such transfer must involve at least $500 (or the total Fixed Account
Contract Value, if less). No transfers may be made from the Fixed Account after
the Annuity Commencement Date.
The conditions applicable to Written Transfers also apply to
Telephone/Fax Transfers, Dollar Cost Averaging Transfers, and Portfolio
Rebalancing.
TELEPHONE/FAX INSTRUCTIONS - An Owner is allowed to enter the following
types of instructions either by telephone or by fax if a telephone/fax
instruction authorization form is completed: (1) transfers between funds, (2)
surrenders, (3) changes of allocations among fund options, (4) change of source
funds for systematic withdrawals, and (5) change of source funds for variable
annuitization payouts. If you complete the telephone/fax form, you agree that
ReliaStar New York will not be liable for any loss, liability, cost or expense
when it acts in accordance with the telephone/fax instructions received. If a
telephone/fax transaction, is later determined not to have been made by you or
was made without your authorization, and a loss results, you bear the risk of
this loss. Any fax requests are considered telephone requests and are bound by
the conditions in the telephone/fax authorization form. Any fax request should
include your name, daytime telephone number, Contract number and the
<PAGE>
names of the Sub-Accounts from which and to which money will be transferred or
withdrawn and the allocation percentage. ReliaStar New York will employ
reasonable procedures to confirm that instructions communicated by telephone are
genuine. In the event ReliaStar New York does not employ such procedures, it may
be liable for any losses due to unauthorized or fraudulent instructions. Such
procedures may include, among others, requiring forms of personal identification
prior to acting upon telephone instructions, providing written confirmation of
such instructions and/or tape recording telephone instructions.
DOLLAR COST AVERAGING TRANSFERS - You can direct ReliaStar New York to
automatically transfer a fixed dollar amount or a specified percentage of
Sub-Account Value to any one or more other Sub-Accounts or to the Fixed Account.
The minimum transfer amount is $100. No transfers from the Fixed Account are
permitted under this service. Transfers may be made on a monthly, quarterly,
semi-annual or annual basis. This service is intended to allow you to utilize
"Dollar Cost Averaging," a long-term investment method which provides for
regular, level investments over time. ReliaStar New York makes no guarantees
that Dollar Cost Averaging will result in a profit or protect against loss.
If you are using the Dollar Cost Averaging Services, it will be
discontinued immediately if: (1) you make a written request to discontinue this
service; (2) we receive a request to begin a portfolio rebalancing service; (3)
the specified transfer amount from any Sub-Account is more than the Accumulation
Value in that Sub-Account; or (4) it is 36 months after the dollar cost
averaging start date.
Contract Owners interested in Dollar Cost Averaging can obtain an
application form and full information concerning this service and its
restrictions from their registered representatives.
ReliaStar New York reserves the right to discontinue, modify, or
suspend this service. Any such modification or discontinuation would not affect
Dollar Cost Averaging transfer programs already commenced. Although ReliaStar
Life currently charges no fees for transfers made under the Dollar Cost
Averaging program, it reserves the right to charge a processing fee for Dollar
Cost Averaging transfers not to exceed $25 per transfer.
PORTFOLIO REBALANCING SERVICE - You may request this service if your
Contract Value, is at least $25,000. If you request this service, you direct us
to automatically make periodic transfers to maintain your specified percentage
allocation among Sub-Accounts of the Variable Account. You may also have your
allocation of future premium payments changed to be equal to this specified
percentage allocation. Transfers made under this service may be made on a
quarterly, semi-annual, or annual basis. This service is intended to maintain
the allocation you have selected consistent with your personal objectives.
The Portfolio Rebalancing service will be discontinued at the earliest
of one of the following events: (1) at the termination date selected by you; (2)
you make a written request to discontinue this service; (3) we receive a request
to begin a dollar cost averaging service; (4) we receive a request to transfer
all of the Accumulation Value from the participating rebalancing Sub-Accounts;
(5) we receive a request to change the allocation of future net premiums; or (6)
the Contract Value falls below $10,000.
Contract Owners interested in Portfolio Rebalancing can obtain an
application form and full information concerning this service and its
restrictions from their registered representatives. ReliaStar New York reserves
the right to discontinue, modify, or suspend this service. Although ReliaStar
New York currently charges no fees for transfers made under the Portfolio
Rebalancing program, it reserves the right to charge a processing fee for
Portfolio Rebalancing transfers not to exceed $25 per transfer.
ASSIGNMENTS
If the Contract is issued pursuant to or in connection with a Qualified
Plan, it cannot be sold, transferred, pledged or assigned to any person or
entity other than ReliaStar New York. In other circumstances, an assignment of
the Contract is permitted, but only before the Annuity Commencement Date, by
giving ReliaStar New York the original or a certified copy of the assignment.
ReliaStar New York shall not be bound by any assignment until it is actually
received by ReliaStar New York and shall not be responsible for the validity of
any assignment. Any payments made or actions taken by ReliaStar New York before
ReliaStar New York actually receives any assignment shall not be affected
by the assignment.
CONTRACT OWNER AND BENEFICIARIES
Unless someone else is named as the Owner in the application for the
Contract, the applicant is the Owner of the Contract and before the Annuity
Commencement Date may exercise all of the Owner's rights under the Contract. No
more than two (2) natural persons may be named as Owner.
The Owner may name a Beneficiary and a Successor Beneficiary. In the
event an Owner dies before the Annuity Commencement Date, the Beneficiary shall
receive a Death Benefit as provided in the Contract. In the event an Owner dies
on or after the Annuity Commencement Date, the Beneficiary, if the Annuity Form
in effect at the Owner's death so
<PAGE>
provides, may continue receiving payments, be paid a lump sum, or be paid
nothing. If the Beneficiary or Successor Beneficiary is not living on the date
payment is due or if no Beneficiary or Successor Beneficiary has been named, the
Owner's estate will receive the applicable proceeds.
A person named as an Annuitant, a Beneficiary or a Successor
Beneficiary shall not be entitled to exercise any rights relating to the
Contract or to receive any payments or settlements under the Contract or any
Annuity Form, unless such person is living on the earlier of (a) the day due
proof of death of the Owner, the Annuitant or the Beneficiary, whichever is
applicable, is received by ReliaStar New York or (b) the tenth day after the
death of the Owner, the Annuitant or the Beneficiary, whichever is applicable.
Unless different arrangements have been made with ReliaStar New York by
the Owner, if more than one Beneficiary is entitled to payments from ReliaStar
New York the payments shall be in equal shares.
Before the Annuity Commencement Date, the Owner may change the
Annuitant, the Beneficiary or the Successor Beneficiary by giving ReliaStar New
York written notice of the change, but the change shall not be effective until
actually received by ReliaStar New York. Upon receipt by ReliaStar New York of a
notice of change, it will be effective as of the date it was signed but shall
not affect any payments made or actions taken by ReliaStar New York before
ReliaStar New York received the notice, and ReliaStar New York shall not be
responsible for the validity of any change.
CONTRACT INQUIRIES
Inquiries regarding a Contract may be made by writing to the ReliaStar
Life Insurance Company of New York, 1000 Woodbury Road, Suite 102, P.O Box 9004,
Woodbury, New York 11797, or by calling 1-800-621-3750.
ANNUITY PROVISIONS
ANNUITY COMMENCEMENT DATE
The Owner selects the Annuity Commencement Date, which must be the
first day of a month, when making application for the Contract. The date will be
the first day of the month following the Annuitant's 75th birthday unless an
earlier or later date has been selected by the Owner and, if the date is later,
it has been agreed to by ReliaStar New York. The Owner may change an Annuity
Commencement Date selection by written notice received by ReliaStar New York at
least 30 days before both the Annuity Commencement Date currently in effect and
the New Annuity Commencement Date. The new date selected must satisfy the
requirements for an Annuity Commencement Date. If the Annuity Commencement Date
selected by the Owner does not occur on a Valuation Date at least two years
after the date on which the Contract was issued, ReliaStar New York reserves the
right to adjust the Annuity Commencement Date to the first Valuation Date after
the Annuity Commencement Date selected by the Owner which is at least two years
after the Contract issue date. If the Annuity Commencement Date occurs before
the second Contract Anniversary, ReliaStar New York will deduct Surrender
Charges. (See "Surrender Charge (Contingent Deferred Sales Charge)".)
ANNUITY FORM SELECTION
The Owner may select a Variable Annuity Form, a Fixed Annuity Form, or
both, with payments starting at the Annuity Commencement Date when making
application for the Contract. Thereafter, the Owner may change the Annuity
Form(s) by written notice received by ReliaStar New York before the Annuity
Commencement Date. If no election has been made before the Annuity Commencement
Date, ReliaStar New York will apply the Fixed Account Contract Value to provide
a Fixed Annuity and the Variable Account Contract Value to provide a Variable
Annuity, both in the form of a Life Annuity with Payments Guaranteed for 10
years (120 months), which shall be automatically effective.
ANNUITY FORMS
Variable Annuity Payments and Fixed Annuity Payments are available in
any of the following Annuity Forms:
LIFE ANNUITY - An annuity payable on the first day of each month during
the Annuitant's life, starting with the first payment due according to the
Contract. Payments cease with the payment made on the first day of the month in
which the Annuitant's death occurs. IT WOULD BE POSSIBLE UNDER THIS ANNUITY FORM
FOR THE ANNUITANT TO RECEIVE ONLY ONE PAYMENT IF HE OR SHE DIED BEFORE THE
SECOND ANNUITY PAYMENT, ONLY TWO PAYMENTS IF HE OR SHE DIED BEFORE THE THIRD
ANNUITY PAYMENT, ETC.
LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 YEARS (120 MONTHS) OR 20
YEARS (240 MONTHS) - An annuity payable on the first day of each month during
the Annuitant's life, starting with the first payment due according to the
Contract. If the Annuitant receives all of the guaranteed payments, payments
will continue thereafter but cease with the payment made on the first day of the
month in which the Annuitant's death occurs. If all of the guaranteed payments
have not been made before the Annuitant's death, the unpaid installments of the
guaranteed payments will be continued to the Beneficiary.
JOINT AND FULL SURVIVOR ANNUITY - An annuity payable on the first day
of each month during the Annuitant's life and the life of a named person (the
"Joint Annuitant"), starting with the first payment due according to the
Contract. Payments will continue while either the Annuitant or the Joint
Annuitant is living and cease with the payment made on the first day of the
month in which the death of the Annuitant or the Joint Annuitant, whichever
lives longer, occurs. THERE IS NO MINIMUM NUMBER OF PAYMENTS GUARANTEED UNDER
THIS ANNUITY FORM. PAYMENTS CEASE UPON THE DEATH OF THE LAST SURVIVOR OF THE
ANNUITANT AND THE JOINT ANNUITANT REGARDLESS OF THE NUMBER OF PAYMENTS RECEIVED.
ReliaStar New York also has other annuity forms available and
information about them can be obtained by writing to ReliaStar New York.
FREQUENCY AND AMOUNT OF ANNUITY PAYMENTS
Annuity payments will be paid as monthly installments, unless the
Annuitant and ReliaStar New York agree to a different payment schedule. However,
if the Contract Value at the Annuity Commencement Date is less than $2,000,
ReliaStar New York may pay the Contract Value in a single sum and the Contract
will be canceled. Also if a monthly payment would be or become less than $50,
ReliaStar New York may change the frequency of payments to intervals that will
result in payments of at least $50 each.
<PAGE>
ANNUITY PAYMENTS
The amount of the first fixed annuity payment is determined by applying
the Contract Value to be used for a fixed annuity at the Annuity Commencement
Date to the annuity table in the Contract for the fixed Annuity Form selected.
The table shows the amount of the initial annuity payment for each $1,000
applied and all subsequent payments shall be equal to this amount. The amount of
the first variable annuity payment is determined by applying the Contract Value
to be used for a variable annuity at the Annuity Commencement Date to the
annuity table in the Contract for the Annuity Form selected.
Subsequent variable annuity payments vary in amount in accordance with
the investment performance of the applicable Sub-Account. Assuming annuity
payments are based on the unit values of a single Sub-Account, the dollar amount
of the first annuity payment, determined as set forth above, is divided by the
Sub-Account Annuity Unit Value as of the Annuity Commencement Date to establish
the number of Variable Annuity Units representing each annuity payment. This
number of Variable Annuity Units remains fixed during the annuity payment
period. The dollar amount of the second and subsequent payments is not
predetermined and may change from month to month. The dollar amount of the
second and each subsequent payment is determined by multiplying the fixed number
of Variable Annuity Units by the Sub-Account Annuity Unit Value for the
Valuation Period with respect to which the payment is due. If the monthly
payment is based upon the Annuity Unit Values of more than one Sub-Account, the
foregoing procedure is repeated for each applicable Sub-Account and the sum of
the payments based on each Sub-Account is the amount of the monthly annuity
payment.
The Annual Contract Charge is deducted in equal installments from each
annuity payment. When a fixed annuity payment is made in conjunction with a
variable annuity payment, an Annual Contract Charge is assessed against each
type of payment and is deducted in equal installments from each annuity payment.
Premium taxes payable to any governmental entity will be charged against the
Contracts. (See "Premium and Other Taxes".)
The annuity tables in the Contracts are based on the
annuity mortality table as defined in the Contract.
ReliaStar New York guarantees that the dollar amount of each variable
annuity payment after the first payment will not be affected by variations in
expenses (including those related to the Variable Account) or in mortality
experience from the mortality assumptions used to determine the first payment.
SUB-ACCOUNT ANNUITY UNIT VALUE
The Sub-Account Annuity Unit Value for any Valuation Period is
determined by multiplying the Sub-Account Annuity Unit Value for the immediately
preceding Valuation Period by the Net Investment Factor for the Sub-Account for
the Valuation Period for which the Sub-Account Annuity Unit Value is being
calculated, and multiplying the result by an interest factor to neutralize the
assumed investment rate of 4% per annum built into the annuity tables contained
in the Contracts. (See "Net Investment Factor".)
ASSUMED INVESTMENT RATE
An assumed investment rate is built into the annuity tables contained
in the Contracts. If the actual net investment rate on the assets of the
Variable Account is the same as the assumed investment rate, variable annuity
payments will remain level. If the actual net investment rate exceeds the
assumed investment rate, variable annuity payments will increase and conversely,
if it is less than the assumed investment rate the payments will decrease.
FEDERAL TAX STATUS
INTRODUCTION
THIS DISCUSSION IS GENERAL AND NOT INTENDED AS TAX ADVICE. The
discussion is not intended to address the tax consequences resulting from all of
the situations in which a person may be entitled to or may receive a
distribution under the Contract. The Contracts are designed for use by
individuals in connection with retirement plans which may or may not be
<PAGE>
Qualified Plans under the provisions of the Internal Revenue Code (the
"Code"). The ultimate effect of federal income taxes on the Contract Value, on
annuity payments and on the economic benefit to the Owner, the Annuitant or the
Beneficiary depends upon the type of retirement plan for which the Contract is
purchased, and upon the tax and employment status of the individual concerned.
No attempt is made to consider any applicable state or other tax laws. The
discussion is based on ReliaStar New York's understanding of Federal Income Tax
Laws as currently interpreted. No representation is made regarding the
likelihood of the continuation of the present Federal Income Tax Laws or the
current interpretation by the Internal Revenue Service ("IRS").
The Contract may be purchased on a non-qualified basis ("Non-Qualified
Contract") or purchased and used in connection with plans qualifying for
favorable tax treatment ("Qualified Contract"). The Qualified Contract is
designed for use by individuals whose premium payments are comprised solely of
proceeds from and/or contributions under retirement plans which are intended to
qualify as plans entitled to special income tax treatment under Sections 401(a),
403(b), 408, or 408A of the Code. The ultimate effect of Federal income taxes on
the amounts held under a Contract, or annuity payments, and on the economic
benefit to the Owner, the Annuitant, or the Beneficiary depends on the type of
retirement plan, on the tax and employment status of the individual concerned,
and on ReliaStar Life's tax status. In addition, certain requirements must be
satisfied in purchasing a Qualified Contract with proceeds from a tax-qualified
plan and receiving distributions from a Qualified Contract in order to continue
receiving favorable tax treatment. Therefore, purchasers of Qualified Contracts
should seek competent legal and tax advice regarding the suitability of a
Contract for their situation, the applicable requirements, and the tax treatment
of the rights and benefits of a Contract. The following discussion assumes that
Qualified Contracts are purchased with proceeds from and/or contributions under
retirement plans that qualify for the intended special Federal income tax
treatment.
TAX STATUS OF THE CONTRACT
DIVERSIFICATION REQUIREMENTS
Section 817(h) of the Code provides that separate account investments
underlying a contract must be "adequately diversified" in accordance with
Treasury regulations in order for the contract to qualify as an annuity contract
under Section 72 of the Code. The Variable Account, through each of the
Investment Funds, intends to comply with the diversification requirements
prescribed in regulations under Section 817(h) of the Code, which affect how the
assets in the various Sub-Accounts may be invested. Although ReliaStar New York
does not have control over the Investment Funds in which the Variable Account
invests, ReliaStar New York expects that each Investment Fund in which the
Variable Account owns shares will meet the diversification requirements and that
the Contract will be treated as an annuity contract under the Code.
The Treasury has also announced that the diversification regulations do
not provide guidance concerning the extent to which Owners may direct their
investments to particular Sub-Accounts of a variable account or how concentrated
the investments of the Investment Funds underlying a variable account may be.
The number of underlying investment options available under a variable product
may also be relevant in determining whether the product qualifies for the
desired tax treatment. It is possible that if additional rules, regulations or
guidance in this regard are issued, the Contract may need to be modified to
comply with such additional rules or guidance. For these reasons, ReliaStar New
York reserves the right to modify the Contract as necessary to attempt to
prevent the Owner from being considered the owner of the assets of the
Investment Funds or otherwise to qualify the Contract for favorable tax
treatment.
REQUIRED DISTRIBUTIONS
In order to be treated as an annuity contract for Federal income tax
purposes, Section 72(s) of the Code also requires any Non-Qualified Contract to
provide that: (a) if any Owner dies on or after the Annuity Commencement Date
but prior to the time the entire interest in the Contract has been distributed,
the remaining portion of such interest will be distributed at least as rapidly
as under the method of distribution being used as of the date of that Owner's
death; and (b) if any Owner dies prior to the Annuity Commencement Date, the
entire interest in the Contract will be distributed within five years after the
date of the Owner's death. These requirements will be considered satisfied as to
any portion of the Owner's interest which is payable to or for the benefit of a
"designated Beneficiary" and which is distributed over the life of such
Beneficiary or over a period not extending beyond the life expectancy of that
Beneficiary, provided that such distributions begin within one year of that
Owner's death. The Owner's "designated Beneficiary" is the person designated by
such owner as a Beneficiary and to
<PAGE>
whom ownership of the Contract passes by reason of death and must be a natural
person. However, if the Owner's "designated Beneficiary" is the surviving spouse
of the Owner, the Contract may be continued with the surviving spouse as the new
Owner. If the Owner is not an individual, any change in the primary Annuitant is
treated as a change of Owner for tax purposes.
The Non-Qualified Contracts contain provisions which are intended to
comply with the requirements of Section 72(s) of the Code, although no
regulations interpreting these requirements have yet been issued. ReliaStar New
York intends to review such provisions and modify them if necessary to assure
that they comply with the requirements of Code Section 72(s) when clarified by
regulation or otherwise. Other rules may apply to Qualified Contracts.
TAXATION OF ANNUITIES
IN GENERAL
Section 72 of the Code governs taxation of annuities in general.
ReliaStar New York believes that an Owner who is a natural person generally is
not taxed on increases in the value of a Contract until distribution occurs by
withdrawing all or part of the Contract Value (e.g., partial surrenders and
complete surrenders) or as annuity payments under the Annuity Form selected. For
this purpose, the assignment, pledge, or agreement to assign or pledge any
portion of the Contract Value (and in the case of a Qualified Contract, any
portion of an interest in the qualified plan) generally will be treated as a
distribution. The taxable portion of a distribution (in the form of a single sum
payment or annuity) is taxable as ordinary income.
The Owner of any annuity contract who is not a natural person generally
must include in income any increase in the excess of the net surrender value
over the "investment in the contract" during the taxable year. ReliaStar New
York restricts ownership of Non-Qualified Contracts to no more than two natural
persons.
The following discussion generally applies to Contracts owned by
natural persons.
SURRENDERS
In the case of a surrender from a Qualified Contract, under Section
72(e) of the Code a ratable portion of the amount received is taxable, generally
based on the ratio of the "investment in the contract" to the participant's
total accrued benefit or balance under the retirement plan. The "investment in
the contract" generally equals the portion, if any, of any premium payments paid
by or on behalf of any individual under a Contract which was not excluded from
the individual's gross income. For Contracts issued in connection with qualified
plans, the "investment in the contract" can be zero. Special tax rules may be
available for certain distributions from Qualified Contracts.
In the case of a surrender from a Non-Qualified Contract before the
Annuity Commencement Date, under Code Section 72(e) amounts received are
generally first treated as taxable income to the extent that the Contract Value
exceeds the "investment in the contract" at that time. Any additional amount
surrendered is not taxable.
In the case of a full surrender under a Qualified or Non-Qualified
Contract, the amount received generally will be taxable only to the extent it
exceeds the "investment in the contract."
A Federal penalty tax may apply to certain surrenders. (See "Penalty
Tax on Certain Distributions".)
ANNUITY PAYMENTS
Although tax consequences may vary depending on the Annuity Form
selected under the Contract, in general, only the portion of the Annuity Payment
that represents the amount by which the Contract Value exceeds the investment in
the Contract will be taxed. For variable annuity payments, the taxable portion
is generally determined by an equation that establishes a specific dollar amount
of each payment that is not taxed. The dollar amount is determined by dividing
the investment in the contract by the total number of expected periodic
payments. However, the entire distribution will be taxable once the recipient
has recovered the amount of his or her investment in the contract. For fixed
annuity payments, in general, there is no tax on the portion of each payment
which represents the same ratio that the investment in the contract
<PAGE>
bears to the total expected value of the annuity payments for the term of the
payments; however, the remainder of each annuity payment is taxable until the
recovery of the investment in the Contract, and thereafter the full amount or
each annuity payment is taxable.
TAXATION OF DEATH BENEFIT PROCEEDS
Amounts may be distributed from a Contract because of the death of an
Owner or an Annuitant. Generally, such amounts are includible in the income of
the recipient as follows: (i) if distributed in a lump sum, they are taxed in
the same manner as a full surrender of the contract; or (ii) if distributed
under a payment option, they are taxed in the same way as annuity payments.
PENALTY TAX ON CERTAIN DISTRIBUTIONS
In the case of a distribution pursuant to a Non-Qualified Contract, a
Federal penalty equal to 10% of the amount treated as taxable income may be
imposed. In general, however, there is no penalty on distributions:
1. made on or after the taxpayer reaches age 59 1/2;
2. made on or after the death of the holder (a holder is
considered an Owner) (or if the holder is not an individual,
the death of the primary annuitant);
3. attributable to the taxpayer's becoming disabled;
4. a part of a series of substantially equal periodic payments
(not less frequently than annually) for the life (or life
expectancy) of the taxpayer or the joint lives (or joint life
expectancies) of the taxpayer and his or her designated
beneficiary;
5. made under an annuity contract that is purchased with a single
premium when the annuity starting date is no later than a year
from purchase of the annuity and substantially equal periodic
payments are made, not less frequently than annually, during
the annuity period; and
6. made under certain annuities issued in connection with
structured settlement agreements.
Other tax penalties may apply to certain distributions under a
Qualified Contract, as well as to certain contributions to, loans from, and
other circumstances, applicable to the Qualified Plan of which the Qualified
Contract is part.
POSSIBLE CHANGES IN TAXATION
The President's 1999 Budget Proposal has recommended legislation in
1998 that, if enacted, would adversely modify the federal taxation of certain
insurance and annuity contracts. For example, one proposal would tax transfers
amoung investment options and tax exchanges involving variable contracts. A
second proposal would reduce the "investment in the contract" under cash value
life insurance and certain annuity contracts, thereby increasing the amount of
income for purposes of computing gain. Although the likelihood of legislative
changes is uncertain, there is always the possibility that the tax treatment of
the Policy could change by legislation or other means (such as IRS regulations,
revenue rulings, judicial decisions, etc.). Moreover, it is also possible that
any change could be retroactive (that is, effective prior to the date of the
change). You should consult a tax adviser with respect to legislative
developments and their effect on the Policy.
TRANSFERS, ASSIGNMENTS OR EXCHANGES OF A CONTRACT
A transfer of ownership or assignment of a Contract, the designation of
an Annuitant, Payee or other Beneficiary who is not also the Owner, or the
exchange of a Contract may result in certain tax consequences to the Owner that
are not discussed herein. An Owner contemplating any such transfer, assignment,
or exchange of a Contract should contact a competent tax adviser with respect to
the potential tax effects of such a transaction.
<PAGE>
WITHHOLDING
Pension and annuity distributions generally are 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, however,
generally are provided the opportunity to elect not to have tax withheld from
distributions. Effective January 1, 1993, distributions from certain qualified
plans are generally subject to mandatory withholding. Withholding for Contracts
issued to retirement plans established under Section 401 of the Code is the
responsibility of the plan trustee.
MULTIPLE CONTRACTS
Section 72(e)(11) of the Code treats non-qualified deferred annuity
contracts issued by ReliaStar New York (or its affiliates) to the same Owner
during any calendar year as one annuity contract for purposes of determining the
amount includible in gross income under Code Section 72(e). The effects of this
rule are not yet clear; however, it could affect the time when income is taxable
and the amount that might be subject to the 10% penalty tax described above. In
addition, the Treasury Department has specific authority to issue regulations
that prevent the avoidance of Section 72(e) through the serial purchase of
annuity contracts or otherwise. There may also be other situations in which the
Treasury may conclude that it would be appropriate to aggregate two or more
annuity contracts purchased by the same Owner. Accordingly, an Owner should
consult a competent tax adviser before purchasing more than one annuity
contract.
TAXATION OF QUALIFIED PLANS
The Contracts are designed for use with several types of Qualified
Plans. The tax rules applicable to participants in these Qualified Plans vary
according to the type of plan and the terms of the plan itself. Favorable tax
treatment may be available for certain types of contributions and distributions.
Adverse tax consequences can result from contributions in excess of specified
limits; distributions prior to age 59 1/2 (subject to certain exceptions);
distributions that do not conform to specified commencement and minimum
distribution rules; aggregate distributions in excess of a specified annual
amount; and in other specified circumstances. Therefore, no attempt is made to
provide more than general information about the use of the Contracts with the
various types of Qualified Plans. Contract Owners, the Annuitants, and
Beneficiaries are cautioned that the rights of any person to any benefits under
these Qualified Plans will be subject to the terms and conditions of the plans
themselves, regardless of the terms and conditions of the Contracts issued in
connection with the plans. ReliaStar New York is not bound by the terms and
conditions of such plans to the extent such terms contradict the Contract,
unless ReliaStar New York consents. Brief descriptions follow of the various
types of Qualified Plans in connection with a Contract.
PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits employers and self-employed persons
to establish various types of retirement plans for employees. Such retirement
plans may permit the purchaser of the Contract to provide benefits under the
plans. Persons intending to use the Contract with such plans should seek
competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 and 408A of the Code permits eligible individuals to
contribute to an individual retirement program known as an "Individual
Retirement Annuity" or "IRA". All IRAs are subject to limits on the amount that
may be contributed, the persons who are eligible, and on the time when
distributions may commence. Section 408 governs "traditional" IRAs. Subject to
certain income limits, contributions to a traditional IRA may be tax deductible.
Distributions from a traditional IRA, if attributable to deductible
contributions, are generally subject to income tax. Distributions must begin in
the year the Contract owner reaches age 70 1/2 for the traditional IRA, but not
for the Roth IRA (see below). Distributions from certain other types of
qualified retirement plans may be "rolled over" on a tax-deferred basis into a
traditional IRA.
Section 408A of the Code permits individuals to contribute to a special
type of IRA called a Roth IRA. The IRA must be designated as a "Roth IRA" at the
time it is established, in accordance with IRS rules. Contributions to a Roth
IRA are not deductible. If certain conditions are met, qualified distributions
from a Roth IRA are tax free. Subject to special limitations, a distribution
from a traditional IRA or another Roth IRA may be rolled over to a Roth IRA.
<PAGE>
Sales of a Contract for use with traditional or Roth IRAs may be
subject to special requirements of the IRS. The IRS has not reviewed the
contract for qualification as an IRA, and has not addressed in a ruling of
general applicability whether a death benefit provision such as the provision in
the Contract comports with IRS qualification requirements.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their gross income
the premiums paid, within certain limits, on a Contract that will provide an
annuity for the employee's retirement. Code section 403(b)(11) restricts the
distribution under Code section 403(b) annuity contracts of elective
contributions and earnings on those contributions; and Distribution may only
occur upon death of the employee, attainment of age 59 1/2, separation from
service, disability, or financial hardship. In addition, income attributable to
elective contributions may not be distributed in the case of hardship.
POSSIBLE CHARGE FOR RELIASTAR NEW YORK'S TAXES
At the present time, ReliaStar New York makes no charge to the
Sub-Accounts for any Federal, state, or local taxes that ReliaStar New York
incurs which may be attributable to such Sub-Accounts or to the Contracts.
ReliaStar New York, however, reserves the right in the future to make a charge
for any such tax laws that it determines to be properly attributable to the
Sub-Accounts or the Contracts.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the Federal tax
consequences under these Contracts are not exhaustive, and special rules are
provided with respect to other tax situations not discussed in this Prospectus.
Further, the Federal income tax consequences discussed herein reflect ReliaStar
New York's understanding of current law and the law may change. Federal estate
and state and local estate, inheritance, and other tax consequences of ownership
or receipt of distributions under a Contract depend on the individual
circumstances of each Owner or recipient of the distribution. A competent tax
adviser should be consulted for further information.
VOTING OF FUND SHARES
As long as the Variable Account is registered as a unit investment
trust under the Investment Company Act of 1940 and the assets of the Variable
Account are allocated to Sub-Accounts that are invested in Investment Fund
shares, the Investment Fund shares held in the Sub-Accounts will be voted by
ReliaStar New York in accordance with instructions received from the person
having voting interests under the Contracts as described below. If ReliaStar New
York determines pursuant to applicable law or regulation that Investment Fund
shares held in the Sub-Accounts and attributable to the Contracts need not be
voted pursuant to instructions received from persons otherwise having the voting
interests, then ReliaStar New York may vote such Investment Fund shares held in
the Sub-Accounts in its own right.
Before the Annuity Commencement Date, the Owner shall have the voting
interest with respect to the Investment Fund shares attributable to the
Contract. On and after the Annuity Commencement Date, the person then entitled
to receive annuity payments shall have the voting interest with respect to the
Investment Fund shares. Such voting interest will generally decrease during the
annuity payout period.
Any Investment Fund shares held in the Variable Account for which we do
not receive timely voting instructions, or which are not attributable to
Contract Owners, will be voted by us in proportion to the instructions received
from all Contract Owners having a voting interest in the Investment Fund. Any
Investment Fund shares held by us or any of our affiliates in general accounts
will, for voting purposes, be allocated to all separate accounts having voting
interests in the Investment Fund in proportion to each account's voting interest
in the respective Investment Fund and will be voted in the same manner as are
the respective account's vote.
All Investment Fund proxy material will be sent to persons having
voting interests together with appropriate forms which may be used to give
voting instructions. Persons entitled to voting interests and the number of
votes which they may
<PAGE>
cast shall be determined as of a record date, to be selected by ReliaStar New
York, not more than 90 days before the meeting of the applicable Fund.
Persons having voting interests under the Contracts as described above
will not, as a result thereof, have voting interests with respect to meetings of
the stockholders of ReliaStar New York.
DISTRIBUTION OF THE CONTRACTS
The Contracts will be sold by licensed insurance agents in those states
where the Contracts can be lawfully sold. Such agents will be registered
representatives of broker-dealers registered under the Securities Exchange Act
of 1934 who are members of the National Association of Securities Dealers, Inc.
The Contracts will be distributed by the General Distributor, Washington Square
Securities, Inc., 20 Washington Avenue South, Minneapolis, Minnesota 55401,
which is an affiliate of ReliaStar New York. Commissions and other distribution
compensation will be paid by ReliaStar New York. Generally such payments will
not exceed 7.5% of the purchase payments. In some cases a trail commission based
on the Contract Value may also be paid.
REVOCATION
The Contract Owner may revoke the contract at any time between the date
of Application and the date 10 days after receipt of the Contract and receive a
refund of the Contract Value unless otherwise required by state and/or federal
law. All Individual Retirement Annuity refunds will be for a return of purchase
payments. In order to revoke the Contract, it must be mailed or delivered to the
mailing address shown below or the agent through whom it was purchased. Mailing
or delivery must occur on or before 10 days after receipt of the Contract for
revocation to be effective. In order to revoke the Contract written notice must
be mailed or delivered to:
ReliaStar Life Insurance Company of New York
1000 Woodbury Road
Suite 102
P.O. Box 9004
Woodbury, New York 11797
The liability of the Variable Account under this provision is limited
to the Contract Value in each Sub-Account on the date of revocation. Any
additional amounts refunded to the Contract Owner will be paid by ReliaStar
New York.
REPORTS TO OWNERS
ReliaStar New York will mail to the Contract Owner, at the last known
address of record at the home office of ReliaStar New York, at least annually
after the first Contract Year, a report containing such information as may be
required by any applicable law or regulation and a statement showing the
Contract Value. To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed to your household, even if you or other persons in
your household have more than one Contract. Call 1-800-621-3750 if you need
copies of financial reports, prospectuses, or historical account information.
PREPARING FOR YEAR 2000
Like all financial services providers, ReliaStar New York utilizes
systems that may be affected by Year 2000 transition issues and it relies on
service providers, including the Funds, that also may be affected. ReliaStar New
York has developed, and is in the process of implementing, a Year 2000
transition plan, and is confirming that its service providers are also so
engaged. The resources that are being devoted to this effort are substantial. It
is difficult to predict with precision whether the amount of resources
ultimately devoted, or the outcome of these efforts, will have any negative
impact on ReliaStar New York. However, as of the date of this prospectus, it is
not anticipated that Contract owners will experience negative effects on their
investment, or on the services provided in connection therewith, as a result of
Year 2000 transition implementation. ReliaStar New York currently anticipates
that its systems will be Year 2000 compliant on or about January 1, 1999, but
there can be no assurance that it will be successful, or that interaction with
other service providers will not impair ReliaStar New York's services at that
time.
LEGAL PROCEEDINGS
ReliaStar New York and its affiliates, like other life insurance
companies, are involved in lawsuits, which may include class action lawsuits. In
some class action and other lawsuits involving insurers, substantial damages
have been sought and/or material settlement payments have been made. Although
the outcome of any litigation cannot be predicted with certainty, ReliaStar New
York believes that at the present time there are no pending or threatened
lawsuits that are reasonably likely to have a material adverse impact on the
Variable Account or upon ReliaStar New York.
FINANCIAL STATEMENTS AND EXPERTS
The annual financial statements of ReliaStar Life Insurance Company of
New York, which are incorporated by reference in the Statement of Additional
Information, have been audited by ___________________, independent auditors, as
stated in their reports which are incorporated by reference and have been so
incorporated by reference in reliance upon the reports of such firm given upon
their authority as experts in accounting and auditing.
No financial statements are available for the Variable Account because
it did not commence operations until after December 31, 1997.
<PAGE>
FURTHER INFORMATION
A Registration Statement under the Securities Act of 1933 has been
filed with the Securities and Exchange Commission with respect to the contracts
described herein. The Prospectus does not contain all of the information set
forth in the Registration Statement and exhibits thereto, to which reference is
hereby made for further information concerning the Variable Account, ReliaStar
New York and the Contracts. The information so omitted may be obtained from the
Commission's principal office in Washington, D.C., upon payment of the fee
prescribed by the Commission, or examined there without charge. Statements
contained in this Prospectus as to the provisions of the Contracts and other
legal documents are summaries, and reference is made to the documents as filed
with the Commission for a complete statement of the provisions thereof.
INFORMATION ABOUT THE FIXED ACCOUNT CAN BE FOUND IN APPENDIX A, ON PAGE
A-1, AND CONDENSED FINANCIAL INFORMATION CAN BE FOUND IN APPENDIX B, ON
PAGE B-1.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
Introduction.................................................................___
Administration of the Contracts..............................................___
Custody of Assets............................................................___
Independent Auditors.........................................................___
Distribution of the Contracts................................................___
Calculation of Yield and Return..............................................___
Financial Statements.........................................................___
- -------------------------------------------------------------------------------
If you would like to receive a copy of the ReliaStar Life Insurance Company of
New York Variable Annuity Separate Account II Statement of Additional
Information, please call 1-800-621-3750 or return this request to:
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
1000 WOODBURY ROAD
SUITE 102
P.O. BOX 9004
WOODBURY, NEW YORK 11797
Your name
- -------------------------------------------------------------------------------
Address
- -------------------------------------------------------------------------------
City State Zip
-------------------------- ---------------- -------------
Please send me a copy of the ReliaStar Life Insurance Company of New York
Variable Annuity Separate Account II Statement of Additional Information.
- -------------------------------------------------------------------------------
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS OR ACCOMPANYING
INVESTMENT FUND PROSPECTUSES AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO
BUY ANY SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH IT RELATES.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY
CIRCUMSTANCES IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
<PAGE>
APPENDIX A
THE FIXED ACCOUNT
CONTRIBUTIONS UNDER THE FIXED PORTION OF THE CONTRACT AND TRANSFERS TO
THE FIXED PORTION BECOME PART OF THE GENERAL ACCOUNT OF RELIASTAR NEW YORK (THE
"FIXED ACCOUNT"), WHICH SUPPORTS INSURANCE AND ANNUITY OBLIGATIONS. 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 INVESTMENT COMPANY ACT OF 1940 ("1940 ACT"). ACCORDINGLY, NEITHER THE FIXED
ACCOUNT NOR ANY INTEREST THEREIN ARE GENERALLY SUBJECT TO THE PROVISIONS OF THE
1933 OR 1940 ACT AND RELIASTAR NEW YORK HAS BEEN ADVISED THAT THE STAFF OF THE
SECURITIES AND EXCHANGE COMMISSION HAS NOT REVIEWED THE DISCLOSURES IN THIS
PROSPECTUS WHICH RELATE TO THE FIXED PORTION OF THE CONTRACT. DISCLOSURES
REGARDING THE FIXED PORTION OF THE ANNUITY CONTRACT AND 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.
The Fixed Account is made up of all of the general assets of ReliaStar
New York other than those allocated to any separate account. Purchase payments
will be allocated to the Fixed Account as elected by the Owner at the time of
purchase or as subsequently changed. ReliaStar New York will invest the assets
of the Fixed Account in those assets chosen by ReliaStar New York and allowed by
applicable law.
ReliaStar New York guarantees that it will credit interest at a rate of
not less than 3% per year, compounded annually, to amounts allocated to the
Fixed Account under the Contract. ReliaStar New York may credit interest at a
rate in excess of 3% per year; however, ReliaStar New York is not obligated to
do so. ANY INTEREST CREDITED TO AMOUNTS ALLOCATED TO THE FIXED ACCOUNT IN EXCESS
OF 3% PER YEAR WILL BE DETERMINED IN THE SOLE DISCRETION OF RELIASTAR NEW YORK.
THE OWNER ASSUMES THE RISK THAT INTEREST CREDITED TO FIXED ACCOUNT ALLOCATIONS
MAY NOT EXCEED THE MINIMUM GUARANTEE OF 3% FOR ANY GIVEN YEAR.
APPENDIX B
PERFORMANCE INFORMATION AND CONDENSED FINANCIAL INFORMATION
PERFORMANCE INFORMATION
From time to time, ReliaStar New York may advertise or include in sales
literature yields, effective yields, and total returns for the available
Sub-Accounts. THESE FIGURES ARE BASED ON HISTORICAL EARNINGS AND DO NOT INDICATE
OR PROJECT FUTURE PERFORMANCE. ReliaStar New York may, from time to time, also
disclose yield and total returns for the portfolios of the Investment Funds,
including such disclosure for periods prior to the dates the Sub-Accounts
commenced operations. Each Sub-Account may, from time to time, advertise or
include in sales literature performance relative to certain performance rankings
and indices compiled by independent organizations. More detailed information as
to the calculation of performance information, as well as comparisons with
unmanaged market indices, appears in the Statement of Additional Information.
Yields, effective yields and total returns for the Sub-Accounts are
based on the investment performance of the corresponding portfolios of the
Investment Funds. The performance in part reflects the Investment Funds'
expenses. See the prospectuses for the Investment Funds.
The yield of the Sub-Account investing in Fidelity's VIP Money Market
Portfolio refers to the annualized income generated by an investment in the
Sub-Account over a specified seven-day period. The yield is calculated by
assuming that the income generated for that seven-day period is generated each
seven-day period over a 52-week period and is shown as a percentage of the
investment. The effective yield is calculated similarly but, when annualized,
the income earned by an investment in the Sub-Account is assumed to be
reinvested. The effective yield will be slightly higher than the yield because
of the compounding effect of this assumed reinvestment.
The yield of a Sub-Account (except the Money Market Sub-Account
investing in Fidelity's VIP Money Market Portfolio) refers to the annualized
income generated by an investment in the Sub-Account over a specified 30-day
or one-month period. The yield is calculated by assuming that the income
generated by the investment during that 30-day or one-month period is generated
each period over a 12-month period and is shown as a percentage of the
investment.
When a Sub-Account has been in operation for one, five, and ten years,
respectively, the total return for these periods will be provided. For periods
prior to the date the Sub-Account commenced operations, performance information
for Contracts funded by the Sub-Accounts will be calculated based on the
performance of the Investment Funds' portfolios and the assumption that the
Sub-Accounts were in existence for the same periods as those indicated for the
Investment Funds' portfolios, with the level of Contract charges that were in
effect at the inception of the Sub-Accounts for the Contracts. Advertising and
sales literature may also compare the performance of each Sub-Account to the
Standard & Poor's Composite Index of 500 Stocks, a widely used measure of stock
performance. This unmanaged index assumes the reinvestment of dividends but does
not reflect any "deduction" for the expense of operating or managing an
investment portfolio. Other independent ranking services and indices may also be
used as a source of performance comparison.
Yields, effective yields and total returns for the Sub-Accounts are
based on the investment performance of the corresponding portfolios of the
Investment Funds. The performance in part reflects the Investment Funds'
expenses. See the prospectuses for the Investment Funds.
ReliaStar New York may also report other information including the
effect of tax-deferred compounding on a Sub-Account's investment returns, or
returns in general, which may be illustrated by tables, graphs or charts.
SUB-ACCOUNT ACCUMULATION UNIT VALUES
The value of Sub-Account Accumulation Units will vary up or down
depending upon performance of the applicable Fund and will be computed based
upon an initial unit value established as of the date of this Prospectus.
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
----------
INDIVIDUAL DEFERRED VARIABLE/FIXED ANNUITY CONTRACTS
ISSUED BY
RELIASTAR LIFE INSURANCE COMPANY OF
NEW YORK VARIABLE ANNUITY SEPARATE ACCOUNT II
AND
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
This Statement of Additional Information is not a Prospectus, but
should be read in conjunction with the Prospectus, dated September ___, 1998
(the "Prospectus") relating to the Individual Deferred Variable/Fixed Annuity
Contracts issued by ReliaStar Life Insurance Company of New York Variable
Annuity Separate Account II (the "Variable Account") and ReliaStar Life
Insurance Company of New York ("ReliaStar New York")(formerly known as ReliaStar
Bankers Security Life Insurance Company). Much of the information contained in
this Statement of Additional Information expands upon subjects discussed in the
Prospectus. A copy of the Prospectus may be obtained from Washington Square
Securities, Inc., 20 Washington Avenue South, Minneapolis, Minnesota 55401.
Capitalized terms used in this Statement of Additional Information that
are not otherwise defined herein shall have the meanings given to them in the
Prospectus.
-------------
TABLE OF CONTENTS
Page
Introduction.............................................................. S-2
Administration of the Contracts........................................... S-2
Custody of Assets......................................................... S-2
Independent Auditors...................................................... S-2
Distribution of the Contracts............................................. S-2
Calculation of Yield and Return........................................... S-3
Financial Statements...................................................... S-16
---------
The date of this Statement of Additional Information is September ___,
1998.
SAI-1
<PAGE>
INTRODUCTION
The Individual Deferred Variable/Fixed Annuity Contracts described in
the Prospectus are flexible purchase payment contracts. The Contracts are sold
both as non-qualified contracts and/or in connection with retirement plans which
may qualify for special federal tax treatment under the Internal Revenue Code.
(See "Federal Tax Status" on page __ of the Prospectus.) Annuity payouts under
the Contracts are deferred until a selected later date.
Purchase payments may be allocated to one or more of the available
Sub-Accounts of the Variable Account, a separate account of ReliaStar New York,
and/or to the Fixed Account (which is the general account of ReliaStar New
York). Purchase payments allocated to one or more of the available Sub-Accounts
of the Variable Account, as selected by the Contract Owner, will be invested in
shares at net asset value of one or more of a group of investment funds (the
"Investment Funds").
ADMINISTRATION OF THE CONTRACTS
ReliaStar New York performs certain administrative functions
("Administrative Functions") relating to the Contracts and the Variable Account
in Minneapolis, Minnesota. These functions include, among other things,
maintaining the books and records of the Variable Account and the Sub-Accounts,
and maintaining records of the name, address, taxpayer identification number,
Contract number, type of Contract issued to each Owner, Contract Value and other
pertinent information necessary to the administration and operation of the
Contracts. ReliaStar New York receives no payment for performing any of the
Administrative Functions.
CUSTODY OF ASSETS
ReliaStar New York maintains custody of the assets of the Variable
Account.
INDEPENDENT AUDITORS
The annual financial statements of ReliaStar Life Insurance Company of
New York, which are incorporated by reference in this Statement of Additional
Information, have been audited by _________________ , independent auditors, as
stated in their reports which are incorporated by reference herein, and have
been so incorporated by reference in reliance upon the reports of such firm
given upon their authority as experts in accounting and auditing.
The Variable Account had no assets as of December 31, 1997, and
therefore, no financial statements for the year ended December 31, 1997 are
included.
DISTRIBUTION OF THE CONTRACTS
The Contracts will be distributed by the General Distributor,
Washington Square Securities, Inc. ("WSSI"), which is a direct wholly-owned
subsidiary of ReliaStar Financial Corp. and is an affiliate of ReliaStar New
York. The Contracts will be sold by licensed insurance agents in those states
where the Contracts can be lawfully sold. Such agents will be registered
representatives of broker-dealers registered under the Securities Exchange Act
of 1934 who are members of the National Association of Securities Dealers, Inc.
As of December 31, 1997, WSSI was not paid any fees by the Company in
connection with distribution of the Contracts.
SAI-2
<PAGE>
No deduction for a sales charge is made from the purchase payments for
the Contracts. However, if part or all of a Contract's value is surrendered,
surrender charges (which may be deemed to be contingent deferred sales charges)
may be made by ReliaStar New York. The method used to determine the amount of
such charge is described in the Prospectus under the heading "Charges Made By
ReliaStar New York - Surrender Charge (Contingent Deferred Sales Charge)."
CALCULATION OF YIELD AND RETURN
CURRENT YIELD AND EFFECTIVE YIELD. Current yield and effective yield
will be calculated only for the VIP Money Market Portfolio Sub-Account.
The current yield is based on a seven-day period (the "base period")
and is calculated by determining the "net change in value" on a hypothetical
account having a balance of one Accumulation Unit at the beginning of the
period, dividing the net change in account value by the value of the account at
the beginning of the base period to obtain the base period return, and
multiplying the base period return by 365/7 with the resulting yield figure
carried to the nearest hundredth of one percent. The effective yield is computed
in a similar manner, except that the base period return is compounded by adding
1, raising the sum to a power equal to 365 divided by 7, and subtracting 1 from
the result, according to the following formula:
365/7
EFFECTIVE YIELD = [(Base Period Return + 1) ] - 1
Net changes in value of a hypothetical account will include net
investment income of the account (accrued daily dividends as declared by the VIP
Money Market Portfolio, less daily expense and contract charges to the account)
for the period, but will not include realized or unrealized gains or losses on
its underlying fund shares.
The VIP Money Market Portfolio Sub-Account's yield and effective yield
will vary in response to any fluctuations in interest rates and expenses of the
Sub-Account.
Assuming that the Sub-Account investing in the VIP Money Market
Portfolio was then in existence, the yield and effective yield of the
Sub-Account for the seven day period ending December 31, 1997 would have been as
follows:
Yield: 4.09%
Effective Yield: 4.17%
STANDARDIZED YIELD. A standardized yield computation may be used for
bond Sub-Accounts. The yield quotation will be based on a recent 30 day (or one
month) period, and is computed by dividing the net investment income per
Accumulation Unit earned during the period by the maximum offering price on the
last day of the period according to the following formula:
YIELD = 2[(a - b + 1)6 - 1]
----
cd
Where:
a = net investment earned during the period by the Fund or
Portfolio attributable to shares owned by the Sub-Account.
b = expenses accrued for the period (net of reimbursements).
SAI-3
<PAGE>
c = the average daily number of Accumulation Units outstanding
during the period.
d = the maximum offering price per Accumulation Unit on the last
day of the period.
Yield on each Sub-Account is earned from dividends declared and paid by
the underlying Fund or Portfolio, which are automatically reinvested in Fund or
Portfolio shares.
AVERAGE ANNUAL TOTAL RETURNS. From time to time, sales literature or
advertisements may also quote average annual total returns for one or more of
the Sub-Accounts for various periods of time.
Average annual total returns represent the average annual compounded
rates of return that would equate an initial investment of $1,000 under a
Contract to the redemption value of that investment as of the last day of each
of the periods. The ending date for each period for which total return
quotations are provided will be for the most recent month-end practicable,
considering the type and media of the communication and will be stated in the
communication.
Average annual total returns will be calculated using Sub-Account unit
values which ReliaStar New York calculates on each Valuation Date based on the
performance of the Sub-Account's underlying Portfolio, the deductions for the
Mortality and Expense Risk Premiums, the Administration Charge, and the Annual
Contract Charge. The calculation assumes that the Annual Contract Charge is $30
per year per Contract deducted at the end of each Contract Year. For purposes of
calculating average annual total return, an average per dollar Annual Contract
Charge attributable to the hypothetical account for the period is used. The
calculation also assumes surrender of the Contract at the end of the period for
the return quotation. Total returns will therefore reflect a deduction of the
Surrender Charge for any period less than six years. The total return will then
be calculated according to the following formula:
TR = ((ERV/P) 1/N) - 1
Where:
TR = The average annual total return net of Sub-Account
recurring charges.
ERV = the ending redeemable value (net of any applicable
surrender charge) of the hypothetical account at the
end of the period.
P = a hypothetical initial payment of $1,000.
N = the number of years in the period.
SAI-4
<PAGE>
Such average annual total return information for the Sub-Accounts is as
follows:
<TABLE>
<CAPTION>
For the 1-year For the 5-year For the 10-year For the period from
period ended period ended period ended date of Inception of
12/31/97 12/31/97 12/31/97 Sub-Account to 12/31/97
------------ ------------ ------------ --------------------
<S> <C> <C> <C> <C>
Sub-Account
- -----------
Alger American Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Alger American MidCap Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Alger American Small Capitalization Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP Equity-Income Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP High Income Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP II Contrafund Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP II Index 500 Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP II Investment Grade Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus Aggressive Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus International Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus Worldwide Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Neuberger&Berman AMT Limited Maturity Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Neuberger&Berman AMT Partners Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust Growth + Value Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
SAI-5
<PAGE>
<CAPTION>
For the 1-year For the 5-year For the 10-year For the period from
period ended period ended period ended date of Inception of
12/31/97 12/31/97 12/31/97 Sub-Account to 12/31/97
------------ ------------ ------------ --------------------
<S> <C> <C> <C> <C>
Sub-Account
- -----------
Northstar Galaxy Trust High Yield Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust Income and Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust International Value Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust Multi-Sector Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Equity Portfolio* N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Global Equity Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Managed Portfolio* N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Small Cap Portfolio* N/A N/A N/A N/A
(Sub-Account Inception: )
Putnam VT Diversified Income Fund N/A N/A N/A N/A
(Sub-Account Inception: )
Putnam VT Growth and Income Fund N/A N/A N/A N/A
(Sub-Account Inception: )
Putnam VT Voyager Fund N/A N/A N/A N/A
(Sub-Account Inception: )
</TABLE>
SAI-6
<PAGE>
From time to time, sales literature or advertisements may quote average
annual total returns for periods prior to the date the Sub-Accounts commenced
operations. Such performance information for the Sub-Accounts will be calculated
based on the performance of the Portfolios and the assumption that the
Sub-Accounts were in existence for the same periods as those indicated for the
Portfolios, with the level of Contract charges currently in effect.
Such average annual total return information for the Sub-Accounts is as
follows:
<TABLE>
<CAPTION>
For the 1-year For the 5-year For the 10-year For the period from date
period ended period ended period ended of Inception of Fund
Sub-Account 12/31/97 12/31/97 12/31/97 Portfolio to 12/31/97
- ----------- -------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Alger American Growth Portfolio 18.53% 17.20% N/A 17.73%
(Portfolio Inception: 1/9/89)
Alger American MidCap Growth Portfolio 7.94% N/A N/A 19.96%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 4.38% 10.55% N/A 17.54%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio 20.86% 18.05% 15.09% 13.02%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio 16.30% 15.92% 15.53% 13.92%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio 10.56% 11.84% 11.20% 10.85%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund Portfolio 16.95% N/A N/A 25.39%
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio 25.39% 17.82% N/A 17.82%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio 2.08% 4.98% N/A 6.73%
(Portfolio Inception: 12/5/88)
Janus Aggressive Growth Portfolio 5.63% N/A N/A 17.01%
(Portfolio Inception: 9/13/93)
Janus Growth Portfolio 15.57% N/A N/A 15.46%
(Portfolio Inception: 9/13/93)
Janus International Growth Portfolio 11.39% N/A N/A 16.79%
(Portfolio Inception: 5/2/94)
Janus Worldwide Growth Portfolio 14.99% N/A N/A 20.70%
(Portfolio Inception: 9/13/93)
SAI-7
<PAGE>
<CAPTION>
For the 1-year For the 5-year For the 10-year For the period from date
period ended period ended period ended of Inception of Fund
Sub-Account 12/31/97 12/31/97 12/31/97 Portfolio to 12/31/97
- ----------- -------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Neuberger&Berman AMT Limited Maturity Bond Portfolio -0.21% 3.48% 5.53% 6.62%
(Portfolio Inception: 9/10/84)
Neuberger&Berman AMT Partners Portfolio 23.96% N/A N/A 21.71%
(Portfolio Inception: 3/22/94)
Northstar Galaxy Trust Growth + Value Portfolio 7.59% N/A N/A 15.27%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust High Yield Bond Portfolio 3.19% N/A N/A 9.52%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust Income and Growth Portfolio 8.54% N/A N/A 11.70%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust International Value Portfolio N/A N/A N/A -4.74%
(Portfolio Inception: 8/8/97)
Northstar Galaxy Trust Multi-Sector Bond Portfolio 0.06% N/A N/A 7.48%
(Portfolio Inception: 5/6/94)
OCC Equity Portfolio* 19.40% 17.33% N/A 15.89%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio 6.97% N/A N/A 14.01%
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 15.13% 17.79% N/A 18.63%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* 15.08% 12.53% N/A 13.82%
(Portfolio Inception: 8/1/88)
Putnam VT Diversified Income Fund 0.42% N/A N/A 5.23%
(Portfolio Inception: 9/15/93)
Putnam VT Growth and Income Fund 16.96% 16.77% N/A 14.98%
(Portfolio Inception: 2/1/88)
Putnam VT Voyager Fund 19.29% 17.16% N/A 16.40%
(Portfolio Inception: 2/1/88)
</TABLE>
SAI-8
<PAGE>
ReliaStar New York may also disclose average annual total returns for
the Investment Fund's Portfolios since their inception, including such
disclosure for periods prior to the date the Variable Account commenced
operations.
Such average annual total return information for the Portfolios of the
Investment Funds is as follows:
<TABLE>
<CAPTION>
For the 1-year For the 5-year For the 10-year For the period from date
period ended period ended period ended of Inception of Fund
Sub-Account 12/31/97 12/31/97 12/31/97 Portfolio to 12/31/97
- ----------- -------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Alger American Growth Portfolio 25.75% 19.28% N/A 19.43%
(Portfolio Inception: 1/9/89)
Alger American MidCap Growth Portfolio 15.01% N/A N/A 22.09%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 11.39% 12.65% N/A 19.23%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio 28.11% 20.14% 16.75% 14.66%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio 23.48% 18.00% 17.20% 15.56%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio 17.67% 13.94% 12.81% 12.45%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund Portfolio 24.14% N/A N/A 28.17%
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio 32.70% 19.91% N/A 19.87%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio 9.06% 7.11% N/A 8.29%
(Portfolio Inception: 12/5/88)
Janus Aggressive Growth Portfolio 12.66% N/A N/A 19.21%
(Portfolio Inception: 9/13/93)
Janus Growth Portfolio 22.75% N/A N/A 17.66%
(Portfolio Inception: 9/13/93)
Janus International Growth Portfolio 18.51% N/A N/A 19.31%
(Portfolio Inception: 5/2/94)
Janus Worldwide Growth Portfolio 22.15% N/A N/A 22.90%
(Portfolio Inception: 9/13/93)
Neuberger&Berman AMT Limited Maturity Bond Portfolio 6.74% 5.63% 7.07% 8.17%
(Portfolio Inception: 9/10/84)
Neuberger&Berman AMT Partners Portfolio 31.25% N/A N/A 24.18%
(Portfolio Inception: 3/22/94)
SAI-9
<PAGE>
<CAPTION>
For the 1-year For the 5-year For the 10-year For the period from date
period ended period ended period ended of Inception of Fund
Sub-Account 12/31/97 12/31/97 12/31/97 Portfolio to 12/31/97
- ----------- -------- -------- -------- ---------------------
<S> <C> <C> <C> <C>
Northstar Galaxy Trust Growth + Value Portfolio 14.65% N/A N/A 17.80%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust High Yield Bond Portfolio 12.06% N/A N/A 12.61%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust Income and Growth Portfolio 15.62% N/A N/A 14.25%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust International Value Portfolio N/A N/A N/A 1.30%
(Portfolio Inception: 8/8/97)
Northstar Galaxy Trust Multi-Sector Bond Portfolio 9.07% N/A N/A 10.65%
(Portfolio Inception: 5/6/94)
OCC Equity Portfolio* 27.26% 19.54% N/A 17.62%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio 14.10% N/A N/A 17.08%
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 22.77% 19.97% N/A 20.38%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* 22.24% 14.62% N/A 15.46%
(Portfolio Inception: 8/1/88)
Putnam VT Diversified Income Fund 7.38% N/A N/A 7.49%
(Portfolio Inception: 9/15/93)
Putnam VT Growth and Income Fund 24.15% 18.86% N/A 16.64%
(Portfolio Inception: 2/1/88)
Putnam VT Voyager Fund 26.52% 19.25% N/A 18.08%
(Portfolio Inception: 2/1/88)
</TABLE>
SAI-10
<PAGE>
OTHER TOTAL RETURNS. From time to time, sales literature or
advertisements may quote average annual total returns for the Sub-Accounts that
do not reflect the Surrender Charge. Such performance information may quote
average annual total returns for periods during which the Sub-Accounts were
operating and for periods prior to the date the Sub-Accounts commenced
operations. These returns are calculated in exactly the same way as average
annual total returns described above, except that the ending redeemable value of
the hypothetical account for the period is replaced with an ending value for the
period that does not take into account any charges on amounts surrendered or
withdrawn. Such information is as follows:
<TABLE>
<CAPTION>
Returns Since Date Sub-Accounts Commenced Operations
For the 1-year For the For the 10-year For the period from
period ended 5-year period ended date of Inception of
12/31/97 period ended 12/31/97 Sub-Account to
Sub-Account ------------- 12/31/97 --------------- 12/31/97
- ----------- -------- --------
<S> <C> <C> <C> <C>
Alger American Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Alger American MidCap Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Alger American Small Capitalization Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP Equity-Income Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP High Income Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP II Contrafund Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP II Index 500 Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Fidelity VIP II Investment Grade Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus Aggressive Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus International Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Janus Worldwide Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
SAI-11
<PAGE>
<CAPTION>
For the 1-year For the For the 10-year For the period from
period ended 5-year period ended date of Inception of
12/31/97 period ended 12/31/97 Sub-Account to
Sub-Account ------------- 12/31/97 --------------- 12/31/97
- ----------- -------- --------
<S> <C> <C> <C> <C>
Neuberger&Berman AMT Limited Maturity Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Neuberger&Berman AMT Partners Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust Growth + Value Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust High Yield Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust Income and Growth Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust International Value Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
Northstar Galaxy Trust Multi-Sector Bond Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Equity Portfolio* N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Global Equity Portfolio N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Managed Portfolio* N/A N/A N/A N/A
(Sub-Account Inception: )
OCC Small Cap Portfolio* N/A N/A N/A N/A
(Sub-Account Inception: )
Putnam VT Diversified Income Fund N/A N/A N/A N/A
(Sub-Account Inception: )
Putnam VT Growth and Income Fund N/A N/A N/A N/A
(Sub-Account Inception: )
Putnam VT Voyager Fund N/A N/A N/A N/A
(Sub-Account Inception: )
</TABLE>
SAI-12
<PAGE>
<TABLE>
<CAPTION>
Returns Including Period Prior to Date Sub-Accounts Commenced Operations
For the 1-year For the 5-year For the For the period from date
period ended period ended 10-year period of Inception of Fund
Sub-Account 12/31/97 12/31/97 ended 12/31/97 Portfolio to 12/31/97
- ----------- -------- -------- -------------- ---------------------
<S> <C> <C> <C>
Alger American Growth Portfolio 23.93% 17.57% N/A 17.73%
(Portfolio Inception: 1/9/89)
Alger American MidCap Growth Portfolio 13.34% N/A N/A 20.35%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 9.78% 11.03% N/A 17.54%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio 26.26% 18.42% 15.09% 13.02%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio 21.70% 16.31% 15.53% 13.92%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio 15.96% 12.30% 11.20% 10.85%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund Portfolio 22.35% N/A N/A 26.34%
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio 30.79% 18.19% N/A 18.15%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio 7.48% 5.56% N/A 6.73%
(Portfolio Inception: 12/5/88)
Janus Aggressive Growth Portfolio 11.03% N/A N/A 17.50%
(Portfolio Inception: 9/13/93)
Janus Growth Portfolio 20.97% N/A N/A 15.97%
(Portfolio Inception: 9/13/93)
Janus International Growth Portfolio 16.79% N/A N/A 17.59%
(Portfolio Inception: 5/2/94)
Janus Worldwide Growth Portfolio 20.39% N/A N/A 21.15%
(Portfolio Inception: 9/13/93)
Neuberger&Berman AMT Limited Maturity Bond Portfolio 5.19% 4.10% 5.53% 6.62%
(Portfolio Inception: 9/10/84)
Neuberger&Berman AMT Partners Portfolio 29.36% N/A N/A 22.39%
(Portfolio Inception: 3/22/94)
Northstar Galaxy Trust Growth + Value Portfolio 12.99% N/A N/A 16.11%
(Portfolio Inception: 5/6/94)
SAI-13
<PAGE>
For the 1-year For the 5-year For the For the period from date
period ended period ended 10-year period of Inception of Fund
Sub-Account 12/31/97 12/31/97 ended 12/31/97 Portfolio to 12/31/97
- ----------- -------- -------- -------------- ---------------------
<S> <C> <C> <C>
Northstar Galaxy Trust High Yield Bond Portfolio 8.59% N/A N/A 10.48%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust Income and Growth Portfolio 13.94% N/A N/A 12.60%
(Portfolio Inception: 5/6/94)
Northstar Galaxy Trust International Value Portfolio N/A N/A N/A 0.66%
(Portfolio Inception: 8/8/97)
Northstar Galaxy Trust Multi-Sector Bond Portfolio 5.46% N/A N/A 8.49%
(Portfolio Inception: 5/6/94)
OCC Equity Portfolio* 24.80% 17.70% N/A 15.89%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio 12.37% N/A N/A 15.25%
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 20.53% 18.16% N/A 18.63%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* 20.48% 12.97% N/A 13.82%
(Portfolio Inception: 8/1/88)
Putnam VT Diversified Income Fund 5.82% N/A N/A 5.93%
(Portfolio Inception: 9/15/93)
Putnam VT Growth and Income Fund 22.36% 17.16% N/A 14.98%
(Portfolio Inception: 2/1/88)
Putnam VT Voyager Fund 24.69% 17.54% N/A 16.40%
(Portfolio Inception: 2/1/88)
</TABLE>
* On September 16, 1994, an investment company then called Quest for Value
Accumulation Trust (the "Old Trust") was effectively divided into two investment
funds, the Old Trust and the present OCC Accumulation Trust (the "Trust") at
which time the Trust commenced operations. The total net assets for the Equity,
Managed, and Small Cap Portfolios immediately after the transaction were
$86,789,755, $682,601,380, and $139,812,573, respectively, with respect to the
Old Trust and for the Equity, Managed, and Small Cap Portfolios, $3,764,598,
$51,345,102, and $8,129,274, respectively with respect to the Trust. For the
period prior to September 14, 1994,
SAI-14
<PAGE>
the performance figures for each of the Equity, Managed, and Small Cap
Portfolios reflect the performance of the corresponding Portfolios of the Old
Trust.
The Investment Funds have provided the total return information for the
Portfolios, including the Portfolio total return information used to calculate
the total returns of the Sub-Accounts for periods prior to the inception of the
Sub-Accounts. The Alger American Fund, Fidelity's Variable Insurance Products
Fund, Fidelity's Variable Insurance Products Fund II, Janus Aspen Series,
Neuberger&Berman Advisers Management Trust, OCC Accumulation Trust, and Putnam
Variable Trust are not affiliated with ReliaStar New York.
ReliaStar New York may disclose Cumulative Total Returns in conjunction
with the standard formats described above. The Cumulative Total Returns will be
calculated using the following formula:
CTR = ERV/P - 1
Where:
CTR = the Cumulative Total Return net of Sub-Account recurring
charges for the period.
ERV = the ending redeemable value of the hypothetical
investment at the end of the period.
P = a hypothetical single payment of $1,000.
EFFECT OF THE ANNUAL CONTRACT CHARGE ON PERFORMANCE DATA. The Contract
provides for a $30 Annual Contract Charge to be deducted annually at the end of
each Contract Year, from the Sub-Accounts and the Fixed Account based on the
proportion that the value of each such account bears to the total Contract
Value. For purposes of reflecting the Annual Contract Charge in yield and total
return quotations, the annual charge is converted into an annual charge per
$1,000 invested based on the Annual Contract Charges collected from the average
total assets of the Variable Account and Fixed Account during the calendar year
ending December 31, 1997.
COMPARATIVE ADVERTISING. In advertising and sales literature, the
performance of each Sub-Account may be compared to the performance of other
variable annuity issuers in general or to the performance of particular types of
variable annuities investing in mutual funds, or investment series of mutual
funds with investment objectives similar to each of the Sub-Accounts. Lipper
Analytical Services, Inc. ("Lipper") and the Variable Annuity Research Data
Service ("VARDS") are independent services which monitor and rank the
performance of variable annuity issuers in each of the major categories of
investment objectives on an industry-wide basis.
Lipper's rankings include variable life insurance issuers as well as
variable annuity issuers. VARDS rankings compare only variable annuity issuers.
The performance analyses prepared by Lipper and VARDS each rank such issuers on
the basis of total return, assuming reinvestment of distributions, but do not
take sales charges, redemption fees or certain expense deductions at the
separate account level into consideration. In addition, VARDS prepares risk
adjusted rankings, which consider the effects of market risk on total return
performance. This type of ranking provides data as to which funds provide the
highest total return within various categories of funds defined by the degree of
risk inherent in their investment objectives.
SAI-15
<PAGE>
FINANCIAL STATEMENTS
The Variable Account had no assets as of December 31, 1997, and
therefore no financial statements for the year ended December 31, 1997 are
included.
ReliaStar New York's statements of financial condition as of December
31, 1997 and 1996, and the related statements of operations, shareholder's
equity and cash flows for the years ended December 31, 1997 and 1996 which will
be incorporated by reference in this Statement of Additional Information, should
be considered only as bearing on ReliaStar New York's ability to meet its
obligations under the Contracts. They should not be considered as bearing on the
investment performance of the assets held in the Variable Account.
SAI-16
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF RELIASTAR FINANCIAL CORP.)
Independent Auditors' Report*
Balance Sheets*
Statements of Income*
Statements of Shareholder's Equity*
Statements of Cash Flows*
Notes to Financial Statements*
December 31, 1997
* To be incorporated by reference by Pre-Effective Amendment.
SAI-17
<PAGE>
PART C. OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
Part A: None
Part B: ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II
---------------------------------
None
ReliaStar Life Insurance Company of New York (1)
---------------------------------
Independent Auditors' Report
Balance Sheets
December 31, 1997 and 1996
Statements of Income,
Years Ended December 31, 1997 and 1996
Statements of Shareholders'
Equity, Years Ended December 31, 1997 and 1996
Statements of Cash Flows,
Years Ended December 31, 1997 and 1996
Notes to Financial Statements
(b) Exhibits:
1. Resolution of the Board of Directors of ReliaStar New York
Insurance Company of New York ("Depositor") authorizing the
establishment of ReliaStar Life Insurance Company of New York
Variable Annuity Separate Account II ("Registrant").
2. Not Applicable.
3. (a) Form of General Distributor Agreement between Depositor
and Washington Square Securities, Inc. ("WSSI").(1)
(b) Forms of agreements between Depositor and broker-dealers
with respect to the sale of Contracts.(1)
(c) Form of Broker-Dealer Agency Compensation Schedule. (1)
4. (a) Form of Contract.(1)
(b) Form of Code Section 403(b) Endorsement. (1)
(c) Form of Qualified Plan Endorsement. (1)
(d) Form of Individual Retirement Annuity Endorsement. (1)
(e) Form of Variable Annuity Endorsement. (1)
(f) Form of Roth Individual Retirement Annuity Endorsement.
(1)
(g) Form of Death Benefit and Owner Amendment. (1)
(h) Form of Waiver of Surrender Charge Rider. (1)
(i) Form of Partial Waiver of Surrender Charge Rider. (1)
(j) Form of Waiver of Annual Contract Charge Rider. (1)
<PAGE>
5. Form of Contract Application.(1)
6. (a) Amended Articles of Incorporation of Depositor.(3)
(b) Amended Bylaws of Depositor.(3)
7. Not Applicable.
8. (a) Form of Participation Agreement by and between Depositor
and Fred Alger Management, Inc. (5)
(b) Form of Amendment No. 1 to Participation Agreement by and
between Depositor and Fred Alger Management, Inc. (1)
(c) Form of Service Agreement by and between Depositor and
Fred Alger Management, Inc. (5)
(d) Participation Agreement among Depositor and Fidelity's
Variable Insurance Products Fund and Fidelity
Distributors Corporation and Form of Amendment No. 1. (4)
(e) Form of Amendment Nos. 2 and 3 to Participation Agreement
among Depositor and Fidelity's Variable Insurance
Products Fund and Fidelity Distributors Corporation. (5)
(f) Form of Amendment No. 4 to Participation Agreement among
Depositor and Fidelity's Variable Insurance Products Fund
and Fidelity Distributors Corporation. (1)
(g) Participation Agreement among Depositor and Fidelity's
Variable Insurance Products Fund II and Fidelity Distrib-
utors Corporation and From of Amendment No. 1. (4)
(h) Form of Amendment Nos. 2 and 3 to Participation Agreement
among Depositor and Fidelity's Variable Insurance
Products Fund II and Fidelity Distributors Corporation.
(5)
(i) Form of Amendment No. 4 to Participation Agreement among
Depositor and Fidelity's Variable Insurance Products Fund
II and Fidelity Distributors Corporation. (1)
(j) Form of Service Contract with Fidelity Distributors
Corporation. (2)
(k) Form of Service Agreement with Fidelity Investments
Institutional Operations Company, Inc. (2)
(l) Form of Participation Agreement by and between Depositor
and Janus Aspen Series. (5)
(m) Form of Amendment No. 1 to Participation Agreement by and
between Depositor and Janus Aspen Series. (1)
(n) Form of Service Agreement by and between Depositor and
Janus Aspen Series . (5)
(o) Form of Participation Agreement by and among Depositor,
Neuberger&Berman Advisers Management Trust, Advisers
Managers Trust and NBMI. (5)
(p) Form of Amendment No. 1 to Participation Agreement by and
among Depositor, Neuberger&Berman Advisers Management
Trust, Advisers Managers Trust and NBMI. (1)
(q) Form of Service Agreement by and between Depositor and
Neuberger&Berman Management Incorporated. (5)
(r) Form of Participation Agreement by and between Depositor
and OpCap Advisors. (5)
(s) Form of Amendment No. 1 to Agreement by and between
Depositor and OpCap Advisors. (1)
(t) Form of Service Agreement by and between Depositor and
OpCap Advisors. (5)
(u) Form of Participation Agreement among Depositor and
Putnam Variable Trust and Putnam Mutual Funds Corp. and
Form of Amendment No. 1. (2)
(v) Form of Amendment No. 2 to Participation Agreement among
Depositor and Putnam Variable Trust and Putnam Mutual
Funds Corp. (1)
(w) Form of Management Services Agreement by and between
Depositor and ReliaStar Life Insurance Company. (4)
9. Consent and Opinion of Stewart D. Gregg as to the legality of
the securities being registered.
10. Independent Auditors' Consent of ______. (1)
<PAGE>
11. Not Applicable.
12. Not Applicable.
13. Schedules for Computation of Performance Quotations. (1)
14. Powers of Attorney.
Stephen A. Carb Charles B. Updike
Richard R. Crowl Ross M. Weale
John H. Flittie James C. Cochran
James T. Hale Roger D. Roenfeldt
Wayne R. Huneke William D. Bonneville
Kenneth U. Kuk
James R. Miller
Richard E. Nolan
Fioravante G. Perotta
Robert C. Salipante
John G. Turner
(1) To be filed by Pre-Effective Amendment.
(2) Incorporated by reference to Depositor's Form S-6 Registration Statement of
ReliaStar Life Insurance Company of New York Variable Life Separate Account
I, File No. 333-19123, filed May 9, 1997.
(3) Incorporated by reference to Depositor's Form S-6 Registration Statement of
ReliaStar Life Insurance Company of New York Variable Life Separate Account
I, File No. 333-47527, filed March 6, 1998.
(4) Incorporated by reference to Depositor's Form S-6 Registration Statement of
ReliaStar Life Insurance Company of New York Variable Life Separate Account
I, File No. 333-19123, filed December 31, 1996.
(5) Incorporated by reference to Depositor's Form S-6 Registration Statement of
ReliaStar Life Insurance Company of New York Variable Life Separate Account
I, File No. 333-19123, filed August 1, 1997.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
<S> <C>
Name and Principal Business Adress Positions and Offices with Depositor
- ------------------------------------- -------------------------------------------
Stephen A. Carb Director
Carb, Luria, Glassner, Cook & Kufeld
521 Fifth Avenue--9th Floor
New York , NY 10017
Richard R. Crowl Director, Senior Vice President and General Counsel
20 Washington Avenue South
Minneapolis, MN 55401
John H. Flittie Director and Vice Chairman
20 Washington Avenue South
Minneapolis, MN 55401
James T. Hale Director
Dayton Hudson Corporation
777 Nicollet Mall--15th Floor
Minneapolis, MN 55402
Wayne R. Huneke Director and Vice President
20 Washington Avenue South
Minneapolis, MN 55401
Kenneth U. Kuk Director and Vice President
20 Washington Avenue South
Minneapolis, MN 55401
James R. Miller Director and Vice President
20 Washington Avenue South
Minneapolis, MN 55401
Richard E. Nolan Director
Davis, Polk & Wardwell
450 Lexington Avenue, Room 3026
New York, NY 10017
Fioravante B. Perrotta Director
13 Clark Land
Essex, CT 06426
Robert C. Salipante Director, President and Chief Executive Officer
20 Washington Avenue South
Minneapolis, MN 55401
John G. Turner Director and Chairman
20 Washington Avenue South
Minneapolis, MN 55401
Charles B. Updike Director
Schoeman, Marsh & Updike
60 East 42nd Street
New York, NY 10165-0048
Ross M. Weale Director
56 Cove Road
Salem, NY 10590
James G. Cochran Executive Vice President
4601 Fairfax Drice
Arlington, VA 22203
Roger D. Roenfeldt Executvie Vice President and Chief Operating Officer
1000 Woodbury Road, Suite 102
Woodbury, NY 11797
William D. Bonneville Senior Vice President and Chief Administrative Officer
1000 Woodbury Road, Suite 102
Woodbury, NY 11797
Chris D. Schreier Treasurer and Controller
20 Washington Avenue South
Minneapolis, MN 55401
Susan M. Bergen Secretary
20 Washington Avenue South
Minneapolis, MN 55401
</TABLE>
<PAGE>
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
Registrant is a separate account of Depositor, established by the Board
of Directors of Depositor on June 15, 1998 pursuant to the laws of the State of
New York. Depositor is a direct, wholly-owned subsidiary of ReliaStar Financial
Corp., a Delaware Corporation.
ReliaStar Financial Corp., the Parent Company ("RLR"), owns directly or
indirectly, capital stock of subsidiary companies as follows as of August 1,
1998 (second and third tier subsidiaries are listed, indented, directly below
their parent company):
<TABLE>
<CAPTION>
Owner and
Company Percentage
<S> <C> <C>
ReliaStar Life Insurance Company ("RLIC") RLR-100%
Northern Life Insurance Company ("NLIC") RLIC-100%
Norlic, Inc. NLIC-100%
Nova, Inc. NLIC-100%
ReliaStar United Services Life Insurance Company ("RUSL") RLIC-100%
Security-Connecticut Life Insurance Company ("SCL") RUSL-100%
ReliaStar Life Insurance Company of New York("RLNY") SCL-100%
North Atlantic New York Agency, Inc. RLNY-100%
Delaware Administrators, Inc. RUSL-100%
USL Services, Inc. RUSL-100%
NWNL Benefits Corporation ("NBC") RLIC-100%
NWNL Health Management Corp. NBC-100%
Select Care Health Network, Inc. NBC-50%
ReliaStar Reinsurance Group (UK), Ltd. RLIC-100%
ReliaStar Investment Research, Inc. RLR-100%
Washington Square Securities, Inc. RLR-100%
Northstar Holding, Inc. ("NI") RLR-100%
Northstar Investment Management Corp. NI-100%
Northstar Distributors, Inc. ("NDI") NI-100%
Northstar Funding, Inc. NDI-100%
Northstar Administrators Corporation NI-100%
<PAGE>
Owner and
Company Percentage
IB Holdings, Inc. ("IB") RLR-100%
International Risks, Inc. IB-100%
Northeastern Corporation IB-100%
The New Providence Insurance Company, Limited IB-100%
Successful Money Management Seminars, Inc. ("SMMS") RLR-100%
PrimeVest Financial Services, Inc.("PVF") RLR-100%
PrimeVest Mortgage, Inc. PVF-100%
PrimeVest Insurance Agency of Alabama, Inc. PVF-100%
PrimeVest Insurance Agency of New Mexico, Inc. PVF-100%
PrimeVest Insurance Agency of Ohio, Inc. Class A Robert Chapman-100%
Class B PVF-100%
Branson Insurance Agency, Inc. PVF-100%
Granite Investment Services, Inc. PVF-100%
Arrowhead, Ltd. RLR-100%
ReliaStar Payroll Agent, Inc. RLR-100%
RelaStar Bancshares, Inc. ("RBS") RLR-100%
ReliaStar Bank ("RB") RBS-100%
ReliaStar Investment Services, Inc. RB-100%
ReliaStar Managing Underwriters, Inc. RLR-100%
</TABLE>
ITEM 27. NUMBER OF CONTRACT OWNERS
As of July 31, 1998 there were no owners of the Contracts.
ITEM 28. INDEMNIFICATION
Reference is hereby made to Section 5.01 of Depositor's Bylaws, filed
as an Exhibit to this Registration Statement. The Bylaws of Depositor mandate
indemnification by Depositor of its directors, officers and certain others,
including directors, officers, employees and agents of Management, under certain
conditions. Section 4.01 of the Bylaws mandates indemnification by Management of
its directors and officers under certain conditions. Insofar as indemnification
for liabilities arising under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of Depositor or Management, pursuant
to the foregoing provisions or otherwise, Depositor and Management have 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 Depositor of expenses incurred or
paid by a director or officer or controlling person of Depositor or Management
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person of Depositor or Management in connection
with the securities being registered, Depositor or Management, as the case may
be, 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 or not such indemnification by it is against public policy
as expressed in the Act and will be governed by the final adjudication of such
issue.
An insurance company blanket bond is maintained providing $25,000,000
coverage for Depositor and Management, subject to a $500,000 deductible.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) WSSI is the principal underwriter of the Contracts. WSSI is also
the distributor and underwriter of variable life contracts issued by ReliaStar
Life Insurance Company of New York through ReliaStar Life Insurance Company of
New York Variable Life Separate Account I and of variable annuity contracts
issued by ReliaStar Life Insurance Company of New York through Separate Accounts
M, P, and Q. WSSI also acts as distributor of (i) USLICO Series Fund, which
funds variable life insurance policies of related companies; (ii) variable life
insurance policies and variable annuity contracts issued by the Company's
affiliate, ReliaStar Life Insurance Company; and (iii) variable annuity
contracts issued by the Company's affiliate, Northern Life Insurance Company.
<PAGE>
(b) The directors and officers of WSSI are as follows:
Name Positions and Offices with WSSI
---- -------------------------------
John H. Flittie Director and Chairman
Anne W. Dowdle Director
Michael J. Dubes Director
James R. Gelder Director
Wayne R. Huneke Director
Robert C. Salipante Director
Jeffrey A. Montgomery President and Chief Operating Officer
Gene Grayson Vice President-National Sales & Marketing
Susan M. Bergen Secretary
Margaret B. Wall Treasurer and Chief Financial Officer
David R. Braun Assistant Vice President
Karin Callanan Assistant Vice President
Timothy J. Lyle Assistant Vice President and Chief Compliance
Officer
Loralee A. Renelt Assistant Secretary
Allen L. Kidd Assistant Secretary
The principal business address of each of the foregoing executive
officers is 20 Washington Avenue South, Minneapolis, Minnesota 55401, except for
the following individuals whose principal business addresses are listed after
their respective names: Michael J. Dubes, 1110 3rd Avenue, Seattle, Washington
98101; James R. Gelder, 20 Security Drive, Avon, Connecticut 06001, Allen L.
Kidd, 222 North Arch Road, Richmond, Virginia 23236.
(c) For the year ended December 31, 1997, WSSI received no
fees in connection with distribution of the Contracts.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The accounts and records of Registrant are located at the offices of
Depositor at 1000 Woodbury Road, Suite 102, Woodbury, New York 11797.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
Registrant will file a post-effective amendment to this Registration
Statement as frequently as is necessary to ensure that the audited financial
statements in this Registration Statement are never more than 16 months old for
so long as payments under the Contracts may be accepted.
Registrant will include either (1) as part of any application to
purchase a Contract offered by the Prospectus, a space that an applicant can
check to request a Statement of Additional Information, or (2) a postcard or
similar written communication affixed to or included in the Prospectus that the
applicant can remove to send for a Statement of Additional Information.
<PAGE>
Registrant will deliver any Statement of Additional Information and any
financial statements required to be made available under this form promptly upon
written or oral request.
The Depositor and the Registrant rely on a no-action letter issued by
the Division of Investment Management to the American Council of New York
Insurance on November 28, 1988 and represent that the conditions enumerated
therein have been or will be complied with.
The Depositor represents that the fees and charges deducted under the
Contract in the aggregate are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by ReliaStar New
York.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, Registrant has caused this Registration Statement to be signed on
its behalf, in the City of Minneapolis and State of Minnesota, on this 17th day
of August, 1998.
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE ANNUITY SEPARATE ACCOUNT II
(Registrant)
By RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(Depositor)
By /s/ Robert C. Salipante
---------------------------------------
Robert C. Salipante
Chief Executive Officer
and President
As required by the Securities Act of 1933 and the Investment Company Act of
1940, Depositor has caused this Amendment to the Registration Statement to be
signed on its behalf, in the City of Minneapolis and State of Minnesota, on this
17th day of August, 1998.
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(Depositor)
By /s/ Robert C. Salipante
---------------------------------------
Robert C. Salipante
Chief Executive Officer
and President
As required by the Securities Act of 1933, this Registration
Statement has been signed on this 17th day of August, 1998 by the following
directors and officers of Depositor in the capacities indicated:
/s/ Robert C. Salipante Chief Executive Officer
- -------------------------------------- and President
Robert C. Salipante
/s/ Chris D. Schreier Treasurer and Controller
- --------------------------------------
Chris D. Schreier
<TABLE>
<S> <C>
Stephen A. Carb Wayne R. Huneke Fioravante G. Perrotta Ross M. Weale
Richard R. Crowl Kenneth U. Kuk Robert C. Salipante James G. Cochran
John H. Flittie James R. Miller John G. Turner Roger D. Roenfeldt
James T. Hale Richard E. Nolan Charles B. Updike William B. Bonneville
</TABLE>
Stewart D. Gregg, by signing his name hereto, does hereby sign this document on
behalf of each of the above-named directors of ReliaStar Life Insurance
Company of New York pursuant to powers of attorney duly executed by such
persons.
/s/ Stewart D. Gregg
---------------------------------------
Stewart D. Gregg, Attorney-In-Fact
<PAGE>
Exhibit Index
EX-99.1 Resolution of the Board of Directors of ReliaStar Life
Insurance Company of New York ("Depositor") authorizing the
establishment of ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Registrant").
EX-99.9 Consent and Opinion of Stewart D. Gregg as to the legality of
the securites being registered.
EX-99.14 Powers of Attorney.
Stephen A. Carb
Richard R. Crowl
John H. Flittie
James T. Hale
Wayne R. Huneke
Kenneth U. Kuk
James R. Miller
Richard E. Nolan
Fioravante G. Perotta
Robert C. Salipante
John G. Turner
Charles B. Updike
Ross M. Weale
James C. Cochran
Roger D. Roenfeldt
William D. Bonneville
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
WRITTEN ACTION OF THE EXECUTIVE COMMITTEE
OF THE BOARD OF DIRECTORS
The undersigned, being all the members of the Executive
Committee of the Board of Directors of ReliaStar Life Insurance
Company of New York, do hereby adopt the following resolutions by
written consent:
RESOLVED, That, pursuant to the Insurance Laws of
this Company's domiciliary state, the Company is authorized
to establish and amend Variable Annuity Separate Accounts
("Separate Accounts") and is empowered to:
(a) to the extent required by the Securities Act of 1933,
effect one or more registrations thereunder and in
connection with such registrations file one or more
registration statements thereunder, or amendments
thereto, including any documents or exhibits required
as a part thereof;
(b) to the extent required by the Investment Company Act
of 1940, register under such Act or file a
notification of claim of exemption from such
registration, and make applications for such other
exemptions or orders under such provisions thereof as
may appear to be necessary or desirable;
(c) to file Plans of Operations and Amendments to such
Plans with the New York Insurance Department and
where necessary, other state insurance departments;
(d) provide for investment management services;
(e) provide for the sale of variable annuity insurance
policies issued and administered by the Company, to
the extent such policies provide for allocation of
amounts to the Separate Accounts;
(f) provide for custodial or depository arrangements for
assets allocated to the Separate Accounts;
(g) select an independent public accountant to audit the
books and records of the Separate Accounts;
(h) perform such additional functions and take such
additional action as may be necessary or desirable to
carry out the foregoing and the intent and purpose
thereof;
<PAGE>
FURTHER RESOLVED, That the Separate Accounts shall
constitute funding mediums to support reserves under such
variable annuity insurance policies issued by the Company as
the President of the Company may from time to time designate
for such purpose;
FURTHER RESOLVED, That the Company may register under
the Securities Act of 1933 variable annuity insurance
policies under which amounts will be allocated by the Company
to the Separate Accounts to support reserves for such
policies and, in connection herewith, the officers of the
Company and each of them are hereby authorized to prepare,
execute and file with the Securities and Exchange Commission,
in the name and on behalf of the Company, registration
statements under the Securities Act of 1933, including
prospectuses, supplements, exhibits and other documents
relating thereto, and amendments to the foregoing, in such
form as the officer executing the same may deem necessary or
appropriate;
FURTHER RESOLVED, That the General Counsel or a
Counsel of the Company is hereby appointed as agent for
service under any such registration statement duly authorized
to receive communications and notices from the Securities and
Exchange Commission with respect thereto;
FURTHER RESOLVED, That the officers of the Company
are authorized to establish unit investment trusts, and funds
to support these trusts, for the sale of variable annuity
insurance policies, and are authorized to prepare, execute
and file registration statements, amendments thereto,
exhibits, applications and other documents as may be
required;
FURTHER RESOLVED, That the officers of the Company,
and each of them are hereby authorized to effect, in the name
and on behalf of the Company all such registrations, filings
and qualifications under blue sky or securities laws and
under insurance securities laws and insurance laws of such
states and other jurisdictions as such officer may deem
necessary or appropriate, with respect to the Company, and
with respect to any variable annuity insurance policies under
which amounts will be allocated by the Company to the
Separate Accounts to support reserves for such policies; such
authorization to include registration, filing and
qualifications of the Company and of said policies, as well
as registration, filing and qualification of officers,
employees and agents of the Company as brokers, dealers,
2
<PAGE>
agents, salesmen, or otherwise; and such authorization shall
also include, in connection therewith, authority to prepare,
execute, acknowledge and file all such applications,
applications for exemptions, certificates, affidavits,
covenants, consents to service of process and other
instruments and to take all such action as the officer
executing the same or taking such action may deem necessary
or desirable;
FURTHER RESOLVED, That the officers of the Company
and each of them are hereby authorized to execute and deliver
all such documents and papers and to do or cause to be done
all such acts and things as such officer may deem necessary
or desirable to carry out the foregoing resolutions and the
intent and purpose thereof;
FURTHER RESOLVED, That the following Standards of
Suitability are adopted:
Standards of Suitability are intended for use by the Company
in its variable annuity insurance operations and shall also
be applicable to any affiliate or subsidiary of the Company,
any director, officer or employee of the Company, and its
affiliated companies and any life insurance agent of the
Company or an affiliate:
The Standards of Suitability which express the criteria of
the Company with respect to determining the suitability for
applicants are as follows:
(a) No recommendation shall be made to an applicant to
purchase a variable annuity insurance policy and no
such policy shall be issued in the absence of
reasonable grounds to believe that the purchase of
such policy is not unsuitable for such applicant on
the basis of information furnished after reasonable
inquiry of such applicant concerning the applicant's
insurance and investment objectives, financial
situation and needs, and any other information known
to the Company or any affiliated company or to the
agent making the recommendation;
(b) All representatives of the Company who recommend to a
prospect the purchase of an equity product must, to
the best of their ability, assure themselves that
this recommendation is not unsuitable. This judgment
should be based upon the prospect's investment
objectives, financial situation and needs, and any
other pertinent information known by the associated
person. In order to obtain an adequate basis for
3
<PAGE>
determining suitability, a reasonable effort must be
made by the associated person to obtain the
information requested in the suitability portion of
an application to purchase such products;
(c) Lapse rates for variable annuity insurance within the
first two policy years which are significantly higher
than those encountered by the Company or any
affiliate for corresponding variable annuity
insurance policies shall be considered in determining
whether the Company and the agents of the Company are
engaging, as a general business practice, in the sale
of variable annuity insurance to persons for whom it
is unsuitable.
FURTHER RESOLVED, That the following Standards of
Conduct are adopted:
The responsibility for maintaining a high Standard of Conduct
and the conduct of the affairs of the variable annuity
insurance operations of the Company rests upon many persons
affiliated with the Company. In recognition of that
responsibility, a Statement of Standards of Conduct hereby
adopted by the Company, provides certain specific and
detailed guidance with respect to investments of variable
life and variable annuity insurance separate accounts and
operations. These Standards of Conduct are intended to apply
to transactions of or with the Company, any affiliate of the
Company, any other person directly or indirectly controlling,
controlled by or under common control with either, any person
that regularly furnishes investment advice to the Company
with respect to its variable separate accounts for which a
specific fee or commission is charged, any director, officer
or employee of any of the foregoing;
The Company hereby adopts Standards of Conduct in respect to
its variable annuity insurance separate accounts and
operations as follows:
(a) With respect to variable annuity insurance separate
accounts, neither the Company nor any affiliate shall
(unless otherwise approved in writing in advance of
the transaction by the insurance regulatory official
of each state requiring such approval in which the
Company shall be authorized to issue variable annuity
insurance):
4
<PAGE>
1) Sell to or purchase from any such separate account
established by the Company any securities or other
property, other than variable contracts;
2) Borrow money or securities from any such separate
account other than under a policy loan provision;
No provision of this statement shall be construed to
prohibit:
1) The investment of separate account assets and
securities issued by one or more investment
companies registered pursuant to The Investment
Company Act of 1940 which is sponsored or managed
by the Company or an affiliate company and the
payment of investment management or advisory fees
on such assets;
2) The combination of orders for the purchase or sale
of securities for the Company, any affiliate, any
separate accounts or any one or more of them,
which is for their mutual benefit or convenience
so long as any securities so purchased or the
proceeds of any sale thereof are allocated among
the participants on some predetermined basis
expressed in writing which is designed to assure
the equitable treatment of all participants;
3) The company or any affiliate to act as a broker or
dealer in connection with the sale of securities
to or by such separate account, provided that any
commission, fee or remuneration charge therefore
shall not exceed the minimum broker's commission
established for any such transaction by any
national securities exchange through which such
transaction could be effected or such charges
prevailing in the ordinary cost of business in the
community where such transaction is effective;
4) The offering of investment management or
investment advisory services by the Company or any
affiliate for a fee, subject to any applicable
variable annuity insurance regulation;
References in the foregoing Standards of Conduct to
sales to, purchases from, or other transactions of or with
any separate account shall embrace sales, purchases or
transactions in respect
5
<PAGE>
of securities, money or other property allocated, or to
be allocated, to such separate account;
FURTHER RESOLVED, That the officers of this Company
are authorized to enter into custodial agreements to carry
out the foregoing and the intent and purposes thereof.
This written action may be executed in any number of
counterparts and each such counterpart shall be deemed an original.
/s/ John G. Turner /s/ John H. Flittie
------------------ -------------------
John G. Turner John H. Flittie
/s/ Robert C. Salipante /s/ Charles B. Updike
----------------------- ---------------------
Robert C. Salipante Charles B. Updike
/s/ Ross M. Weale
-----------------
Ross M. Weale
Date: June 15, 1998
-------------
ReliaStar New York Insurance Company
20 Washington Avenue South
Minneapolis, Minnesota 55401
August 7, 1998
ReliaStar Life Insurance Company of New York
1000 Woodbury Road, Suite 102
Woodbury, New York 11797
Madam/Sir:
In connection with the proposed registration under the Securities Act of 1933,
as amended, of individual variable annuity contracts (the "Contracts") issued by
ReliaStar Life Insurance Company of New York Variable Annuity Separate Account
II (the "Separate Account"), I have examined documents relating to the
establishment of the Separate Account by the Board of Directors of ReliaStar
Life Insurance Company of New York (the "Company") as a separate account for
assets applicable to variable annuity contracts, pursuant to New York Statutes
Section 4240, as amended, and the initial Registration Statement on Form N-4
(the "Registration Statement"), and I have examined such other documents and
have reviewed such matters of law as I deemed necessary for this opinion, and I
advise you that in my opinion:
1. The Separate Account is a separate account of the Company duly
created and validly existing pursuant to the laws of the State
of New York.
2. The contracts, when issued in accordance with the Prospectus
constituting a part of the Registration Statement and upon
compliance with applicable local law, will be legal and
binding obligations of the Separate Account and the Company in
accordance with their respective terms.
3. The portion of the assets held in the Separate Account equal
to reserves and other contract liabilities with respect to the
Separate Account are not chargeable with liabilities arising
out of any other business the Company may conduct.
I consent to the filing of this opinion as an exhibit to the Registration
Statement and to the references to me wherever appearing therein.
Very truly yours,
/s/ Stewart D. Gregg
- --------------------
Stewart D. Gregg, Counsel
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ Stephen A. Carb
-------------------
Stephen A. Carb
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ Richard R. Crowl
--------------------
Richard R. Crowl
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 1st day of July, 1998.
/s/ John H. Flittie
-------------------
John H. Flittie
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ James T. Hale
-----------------
James T. Hale
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ Wayne R. Huneke
-------------------
Wayne R. Huneke
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 1st day of July, 1998.
/s/ Kenneth U. Kuk
------------------
Kenneth U. Kuk
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ James R. Miller
-------------------
James R. Miller
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 3rd day of July, 1998.
/s/ Richard E. Nolan
--------------------
Richard E. Nolan
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ Fioravante G. Perrotta
--------------------------
Fioravante G. Perrotta
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 1st day of July, 1998.
/s/ Robert C. Salipante
-----------------------
Robert C. Salipante
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 8th day of July, 1998.
/s/ John G. Turner
------------------
John G. Turner
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 6th day of July, 1998.
/s/ Charles B. Updike
---------------------
Charles B. Updike
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 7th day of July, 1998.
/s/ Ross M. Weale
-----------------
Ross M. Weale
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 7th day of July, 1998.
/s/ James G. Cochran
--------------------
James G. Cochran
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 1st day of July, 1998.
/s/ Roger D. Roenfeldt
----------------------
Roger D. Roenfeldt
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
Power of Attorney
of Director and Officer
The undersigned director and/or officer of RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK, a New York corporation, does hereby make, constitute and
appoint RICHARD R. CROWL, MICHAEL S. FISCHER, STEWART D. GREGG, ROBERT B.
SAGINAW, and JEFFREY PROULX, and each or any one of them, the undersigned's true
and lawful attorneys-in-fact, with full power of substitution, for the
undersigned and in the undersigned's name, place and stead, to sign and affix
the undersigned's name as such director and/or officer of said Company to a
Registration Statement or Registration Statements, under the Securities Act of
1933 (1933 Act) and the Investment Company Act of 1940 (1940 Act) and any other
forms applicable to such registrations, and all amendments, including
post-effective amendments, thereto, to be filed by said Company with the
Securities and Exchange Commission, Washington, DC, in connection with the
registration under the 1933 and 1940 Acts, as amended, of variable annuity
contracts and accumulation units in the ReliaStar Life Insurance Company of New
York Variable Annuity Separate Account II ("Variable Account"), and to file the
same, with all exhibits thereto and other supporting documents, with said
Commission, granting unto said attorneys-in-fact, and each of them, full power
and authority to do and perform any and all acts necessary or incidental to the
performance and execution of the powers herein expressly granted.
IN WITNESS WHEREOF, the undersigned has hereunto set the undersigned's
hand this 30th day of June, 1998.
/s/ William D. Bonneville
-------------------------
William D. Bonneville
