VARIABLE ANNUITY ACCOUNT SEVEN, 424B3, 2000-07-05

VARIABLE ANNUITY ACCOUNT SEVEN
424B3, 2000-07-05

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<PAGE> 1

As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 333-65965

[POLARIS(II) A-CLASS LOGO]
Profile

THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD
KNOW AND CONSIDER BEFORE PURCHASING THE POLARIS(II) A-CLASS VARIABLE ANNUITY.
THE ANNUITY IS MORE FULLY DESCRIBED IN THE PROSPECTUS. PLEASE READ THE
PROSPECTUS CAREFULLY.

July 5, 2000

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1. THE POLARIS(II) A-CLASS VARIABLE ANNUITY
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The Polaris(II) A-Class Variable Annuity is a contract between you and Anchor
National Life Insurance Company. It is designed to help you invest on a
tax-deferred basis and meet long-term financial goals, such as retirement
funding. Tax deferral means all your money, including the amount you would
otherwise pay in current income taxes, remains in your contract to generate more
earnings. Your money could grow faster than it would in a comparable taxable
investment.

Polaris(II) A-Class offers a diverse selection of money managers and investment
options. You may divide your money among any or all 30 variable portfolios and 7
fixed account options. Your investment is not guaranteed. The value of your
Polaris(II) A-Class contract can fluctuate up and down, based on the performance
of the underlying investments you select, and you may experience a loss.

The variable portfolios offer professionally managed investment choices with
goals ranging from capital preservation to aggressive growth. Your choices for
the various investment options are found on the next page.

The contract also offers 7 fixed account options, for different time periods.
Each may have a different interest rate. Interest rates are guaranteed by Anchor
National.

Like most annuities, the contract has an accumulation phase and an income phase.
During the accumulation phase, you invest money in your contract. Your earnings
are based on the investment performance of the variable portfolios to which your
money is allocated and/or the interest rate(s) earned on the fixed account
option(s) in which you invest. You may withdraw money from your contract during
the accumulation phase. However, as with other tax-deferred investments, you
will pay taxes on earnings and untaxed contributions when you withdraw them. An
IRS penalty tax may apply if you make withdrawals before age 59 1/2.

During the income phase, you may receive income payments from your annuity. Your
income payments may be fixed in dollar amount, vary with investment performance
or a combination of both, depending on where your money is allocated. Among
other factors, the amount of money you are able to accumulate in your contract
during the accumulation phase will affect the amount of your income payments
during the income phase.

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2. INCOME OPTIONS
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You can select from one of five income options:

(1) payments for your lifetime;
(2) payments for your lifetime and your survivor's lifetime;
(3) payments for your lifetime and your survivor's lifetime, but for not less
than 10 or 20 years;
(4) payments for your lifetime, but for not less than 10 or 20 years; and
(5) payments for a specified period of 5 to 30 years.

You will also need to decide when your income payments begin and if you want
your income payments to fluctuate with investment performance or remain
constant. Once you begin receiving income payments, you cannot change your
income option.

If your contract is part of a non-qualified retirement plan (one that is
established with after-tax dollars), payments during the income phase are
considered partly a return of your original investment. The "original
investment" part of each payment is not taxable as income. For contracts which
are part of a qualified retirement plan using before-tax dollars, the entire
income payment is taxable as income.

In addition to the above income options, you may also elect to take income
payments under the income protector program, subject to the provisions thereof.

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3. PURCHASING A POLARIS(II) A-CLASS
VARIABLE ANNUITY CONTRACT
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You can buy a contract through your financial representative, who can also help
you complete the proper forms. For non-qualified contracts, the minimum initial
gross purchase payment is $5,000 and subsequent amounts of $500 or more may be
added to your contract at any time during the accumulation phase. For qualified
contracts, the minimum initial gross purchase payment is $2,000 and subsequent
amounts of $250 or more may be added to your contract at any time during the
accumulation phase. Additionally, the optional automatic payment plan allows you
to make subsequent gross purchase payments of as little as $20.
<PAGE> 2

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4. INVESTMENT OPTIONS
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You may allocate money to the following variable portfolios of the Anchor Series
Trust and/or the SunAmerica Series Trust:

ANCHOR SERIES TRUST
MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP
- Capital Appreciation Portfolio
- Growth Portfolio
- Government and Quality Bond Portfolio

SUNAMERICA SERIES TRUST
MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.
- Global Equities Portfolio
- Alliance Growth Portfolio
- Growth-Income Portfolio
MANAGED BY DAVIS SELECTED ADVISERS, L.P.
- Davis Venture Value Portfolio
- Real Estate Portfolio
MANAGED BY FEDERATED INVESTORS
- Federated Value Portfolio
- Telecom Utility Portfolio
- Corporate Bond Portfolio
MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
- Asset Allocation Portfolio
- Global Bond Portfolio
- Goldman Sachs Research Portfolio
MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY
- MFS Mid-Cap Growth Portfolio
- MFS Growth and Income Portfolio
- MFS Total Return Portfolio
MANAGED BY MORGAN STANLEY ASSET MANAGEMENT
- International Diversified Equities Portfolio
- Worldwide High Income Portfolio
- Technology Portfolio
MANAGED BY PUTNAM INVESTMENT MANAGEMENT, INC.
- Putnam Growth Portfolio
- International Growth and Income Portfolio
- Emerging Markets Portfolio
MANAGED BY SUNAMERICA ASSET MANAGEMENT CORP.
- Aggressive Growth Portfolio
- "Dogs" of Wall Street Portfolio
- SunAmerica Balanced Portfolio
- High-Yield Bond Portfolio
- Cash Management Portfolio
- Blue Chip Growth Portfolio
- Growth Opportunities Portfolio
You may also allocate money to the 1-year fixed account option or the 3, 5, 7
and 10-year market value adjustment ("MVA") fixed account options and, under
certain circumstances, the 6-month and 1-year Dollar Cost Averaging ("DCA")
fixed account options.

The interest rates applicable for these fixed account options may differ from
time to time, however, we will never credit less than a 3% compounded effective
yield. Once established, the rate will not change during the selected period.
Your contract value will be adjusted up or down for withdrawals or transfers
from the 3, 5, 7 and 10-year fixed account options prior to the end of the
guarantee period.
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5. EXPENSES
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We deduct insurance charges, to cover our mortality, expense and distribution
risks, which equal 0.85% annually of the average daily value of your contract
allocated to the variable portfolios. There are no insurance charges deducted
from amounts allocated to the fixed account options.

We apply an up-front sales charge against the gross purchase payments you make
to your contract. The sales charge equals a percentage of each gross purchase
payment and varies with your investment amount.

Your investment amount is determined on the day we receive a gross purchase
payment and is the greater of:

(1) The sum of (a) the gross purchase payment amount, (b) the current
contract value of this contract, and (c) the current contract values of
any eligible related contracts; or

(2) The amount, if any, you agree to contribute to this contract and your
eligible related contracts over a designated 13-month period.

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SALES CHARGE AS A
PERCENTAGE OF GROSS PURCHASE
INVESTMENT AMOUNT PAYMENT INVESTED
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<S> <C>
Less than $ 50,000 5.75%
$ 50,000 - $ 99,999 4.75%
$100,000 - $249,999 3.50%
$250,000 - $499,999 2.50%
$500,000 - $999,999 2.00%
$1,000,000 or more 0.50%*
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</TABLE>

* Additionally, a withdrawal charge of 0.50% applies to gross purchase payments
subject to a 0.50% sales charge if invested less than 12 months at the time of
withdrawal.

As with other professionally managed investments, there are investment charges
imposed on contracts with money allocated to the variable portfolios. We
estimate these fees to range from 0.53% to 1.90%.

Each year, you are allowed to make 15 transfers without charge. After your first
15 transfers, a $25 transfer fee ($10 in Pennsylvania and Texas) applies to each
subsequent transfer.

In a limited number of states, you may also be assessed a state premium tax of
up to 3.5% depending upon the state.

The following chart is designed to help you understand the charges in your
contract. The column "Total Annual Charges" shows the total of the 0.85%
insurance charges and the estimated investment fees for each variable portfolio.

The next two columns show two examples of the charges you would pay under the
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. We assume an up-front sales charge of 5.75% and a premium
tax of 0% in both examples.
<PAGE> 3

<TABLE>
<CAPTION>
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EXAMPLES:
TOTAL ANNUAL TOTAL ANNUAL TOTAL EXPENSES TOTAL EXPENSES
INSURANCE INVESTMENT TOTAL ANNUAL AT END OF AT END OF
ANCHOR SERIES TRUST PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR* 10 YEARS*
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<S> <C> <C> <C> <C> <C>
Capital Appreciation 0.85% 0.67% 1.52% $ 73 $227
Growth 0.85% 0.73% 1.58% $ 73 $233
Government and Quality Bond 0.85% 0.66% 1.51% $ 73 $226
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SUNAMERICA SERIES TRUST PORTFOLIO
Technology*** 0.85% 1.55% 2.40% $ 82 $262
Emerging Markets** 0.85% 1.90% 2.75% $ 85 $347
International Diversified Equities 0.85% 1.22% 2.07% $ 78 $282
Global Equities 0.85% 0.84% 1.69% $ 74 $244
International Growth and Income** 0.85% 1.21% 2.06% $ 78 $281
Growth Opportunities*** 0.85% 1.00% 1.85% $ 76 $219
Aggressive Growth** 0.85% 0.75% 1.60% $ 74 $235
MFS Mid-Cap Growth 0.85% 1.15% 2.00% $ 78 $275
Real Estate** 0.85% 0.92% 1.77% $ 75 $252
Blue Chip Growth*** 0.85% 0.85% 1.70% $ 75 $207
Putnam Growth 0.85% 0.80% 1.65% $ 74 $240
Goldman Sachs Research*** 0.85% 1.35% 2.20% $ 80 $247
MFS Growth and Income 0.85% 0.75% 1.60% $ 74 $235
Alliance Growth 0.85% 0.63% 1.48% $ 72 $222
"Dogs" of Wall Street** 0.85% 0.67% 1.52% $ 73 $227
Davis Venture Value 0.85% 0.74% 1.59% $ 73 $234
Federated Value** 0.85% 0.77% 1.62% $ 74 $237
Growth-Income 0.85% 0.56% 1.41% $ 72 $215
Telecom Utility**,+ 0.85% 0.84% 1.69% $ 74 $244
Asset Allocation 0.85% 0.63% 1.48% $ 72 $222
MFS Total Return 0.85% 0.75% 1.60% $ 74 $235
SunAmerica Balanced** 0.85% 0.66% 1.51% $ 73 $226
Worldwide High Income 0.85% 1.12% 1.97% $ 77 $272
High-Yield Bond 0.85% 0.67% 1.52% $ 73 $227
Corporate Bond 0.85% 0.71% 1.56% $ 73 $231
Global Bond 0.85% 0.84% 1.69% $ 74 $244
Cash Management 0.85% 0.53% 1.38% $ 71 $212
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</TABLE>

* Includes sales charge applicable to a $1,000 purchase payment, or 5.75%.

** For these portfolios, the adviser, SunAmerica Asset Management Corp., has
voluntarily agreed to waive fees or reimburse expenses, if necessary, to
keep operating expenses at or below an established maximum amount. All
waivers or reimbursements may be terminated at any time. For more detailed
information, see Fee Tables and Examples in the prospectus.

*** This portfolio was not available for sale during the fiscal year 2000. The
Total Annual Investment Charges are based on estimated amounts for the
current fiscal year.
+ Formerly named Utility Portfolio. The name change will not result in any
modifications to the portfolio's principal investment goal or fundamental
investment policies.

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6. TAXES
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Unlike taxable investments where earnings are taxed in the year they are earned,
taxes on amounts earned in a non-qualified contract are deferred until they are
withdrawn. In a qualified contract, all amounts are taxable when they are
withdrawn.

When you begin taking distributions or withdrawals from your contract, earnings
are considered to be taken out first and will be taxed at your ordinary income
rate. You may be subject to a 10% IRS penalty tax for distributions or
withdrawals before age 59 1/2.
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7. ACCESS TO YOUR MONEY
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Withdrawals may be made from your contract in the amount of $1,000 or more. You
may request a withdrawal in writing or by establishing systematic withdrawals.
Under systematic withdrawals, the minimum withdrawal amount is $100.
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8. PERFORMANCE
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The value of your contract will fluctuate depending upon the investment
performance of the variable portfolio(s) you choose.

When you invest in the Polaris(II) A-Class Variable Annuity, your money is
actually invested in the underlying portfolios of the Anchor Series Trust and/or
the SunAmerica Series Trust. These trusts are older than the annuity itself and
have served as underlying investments for other variable annuity contracts. Some
of the advertised historical performance for this annuity will be derived from
the performance of the corresponding portfolios of the trusts, modified to
reflect the charges and expenses associated with this contract, as if this
contract had been in existence during the time period advertised. Of course,
past performance does not guarantee future results.
<PAGE> 4

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9. DEATH BENEFIT
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If you should die during the accumulation phase, your beneficiary will receive a
death benefit. You must select from the two death benefit options described
below at the time you purchase your contract. Once selected, your death benefit
may not be changed. You should discuss with your financial representative the
options available to you and which option is best for you.

OPTION 1 - PURCHASE PAYMENT ACCUMULATION OPTION:

The death benefit is the greater of:

(1) the value of your contract at the time we receive satisfactory proof of
death; or

(2) total gross purchase payments less withdrawals (and any fees or charges
applicable to such withdrawals); or

(3) total purchase payments less withdrawals (and any fees or charges applicable
to such withdrawals), compounded at a 4% annual growth rate until the date
of death (3% growth rate if 70 or older at the time of contract issue) plus
any purchase payments less withdrawals recorded after the date of death (and
any fees or charges applicable to such withdrawals); or

(4) the value of your contract on the seventh contract anniversary, plus any
purchase payments since the seventh anniversary and less any withdrawals
(and any fees or charges applicable to such withdrawals), all compounded at
a 4% annual growth rate until the date of death (3% if 70 or older at the
time of contract issue) plus any purchase payments less withdrawals recorded
after the date of death (and any fees or charges applicable to such
withdrawals).

OPTION 2 - MAXIMUM ANNIVERSARY OPTION:

The death benefit is the greater of:

(1) the value of your contract at the time we receive satisfactory proof of
death; or

(2) total gross purchase payments less withdrawals (and any fees or charges
applicable to such withdrawals); or

(3) the maximum anniversary value on any contract anniversary prior to your 81st
birthday. The anniversary value equals the value of your contract on a
contract anniversary plus any purchase payments and less any withdrawals
(and any fees or charges applicable to such withdrawals) since that contract
anniversary.

If you are age 90 or older at the time of death and selected the option 2 death
benefit, the death benefit will be equal to the value of your contract at the
time we receive satisfactory proof of death.
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10. OTHER INFORMATION
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FREE LOOK: You may cancel your contract within ten days (or longer if required
by your state) by mailing it to our Annuity Service Center. Your contract will
be treated as void on the date we receive it and we will pay you an amount equal
to the sum of the value of your contract (unless otherwise required by state
law) and the sales charge. Its value may be more or less than the money you
initially invested.

ASSET ALLOCATION REBALANCING PROGRAM: If elected by you, this program seeks to
keep your investment in line with your goals. We will maintain your specified
allocation mix in the variable portfolios and the 1-year fixed account option by
readjusting your money on a calendar quarter, semiannual or annual basis.

SYSTEMATIC WITHDRAWAL PROGRAM: If elected by you, this program allows you to
receive either monthly, quarterly, semiannual or annual checks during the
accumulation phase. Systematic withdrawals may also be electronically
transferred to your bank account. Of course, withdrawals may be taxable and a
10% IRS penalty tax may apply if you are under age 59 1/2.

PRINCIPAL ADVANTAGE PROGRAM: If elected by you, this program allows you to
obtain growth potential without any market risk to your principal. We will
guarantee that the portion of your money allocated to the 1, 3, 5, 7 or 10-year
fixed account option will grow to equal your principal investment when it is
allocated in accordance with the program.

DOLLAR COST AVERAGING: If elected by you, this program allows you to invest
gradually in the variable portfolios from any of the variable portfolios, the
1-year fixed account option, the 6-month DCA fixed account option or the 1-year
DCA fixed account option.

AUTOMATIC PAYMENT PLAN: You can add to your contract directly from your bank
account with as little as $20 per month.

CONFIRMATIONS AND QUARTERLY STATEMENTS: During the accumulation phase, you will
receive confirmation of transactions within your contract. Transactions made
pursuant to contractual or systematic agreements, such as deduction of the
annual maintenance fee and dollar cost averaging, may be confirmed quarterly.
Purchase payments received through the automatic payment plan or a salary
reduction arrangement, may also be confirmed quarterly. For all other
transactions, we send confirmations immediately.

During the accumulation and income phases, you will receive a statement of your
transactions over the past quarter and a summary of your account values.

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11. INQUIRIES
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If you have questions about your contract or need to make changes, call your
financial representative or contact us at:

Anchor National Life Insurance Company
Annuity Service Center
P.O. Box 54299
Los Angeles, California 90054-0299
Telephone Number: (800) 445-SUN2

If money accompanies your correspondence, you should direct it to:

Anchor National Life Insurance Company
P.O. Box 100330
Pasadena, California 91189-0001
<PAGE> 5

[POLARIS(II) A-CLASS LOGO]

PROSPECTUS

JULY 5, 2000

<TABLE>
<S> <C> <C>
Please read this prospectus carefully FLEXIBLE PAYMENT DEFERRED ANNUITY CONTRACTS
before investing and keep it for issued by
future reference. It contains ANCHOR NATIONAL LIFE INSURANCE COMPANY
important information about the in connection with
Polaris(II) A-Class Variable Annuity. VARIABLE ANNUITY ACCOUNT SEVEN
The annuity has 37 investment choices -- 7 fixed account
To learn more about the annuity options and 30 Variable Portfolios listed below. The 7 fixed
offered by this prospectus, you can account options include specified periods of 1, 3, 5, 7 and
obtain a copy of the Statement of 10 years and DCA accounts for 6-month and 1-year periods.
Additional Information ("SAI") dated The 30 Variable Portfolios are part of the Anchor Series
July 5, 2000. The SAI is on file with Trust and the SunAmerica Series Trust.
the Securities and Exchange ANCHOR SERIES TRUST:
Commission ("SEC") and is MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP
incorporated by reference into this - Capital Appreciation Portfolio
prospectus. The Table of Contents of - Growth Portfolio
the SAI appears on page 21 of this - Government and Quality Bond Portfolio
prospectus. For a free copy of the SUNAMERICA SERIES TRUST:
SAI, call us at (800) 445-SUN2 or MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.
write to us at our Annuity Service - Global Equities Portfolio
Center, P.O. Box 54299, Los Angeles, - Alliance Growth Portfolio
California 90054-0299. - Growth-Income Portfolio
MANAGED BY DAVIS SELECTED ADVISERS, L.P.
In addition, the SEC maintains a - Davis Venture Value Portfolio
website (http://www.sec.gov) that - Real Estate Portfolio
contains the SAI, materials MANAGED BY FEDERATED INVESTORS
incorporated by reference and other - Federated Value Portfolio
information filed electronically with - Telecom Utility Portfolio
the SEC by Anchor National. - Corporate Bond Portfolio
MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/
Annuities involve risks, including GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
possible loss of principal. Annuities - Asset Allocation Portfolio
are not a deposit or obligation of, - Global Bond Portfolio
or guaranteed or endorsed by, any - Goldman Sachs Research Portfolio
bank. They are not Federally insured MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY
by the Federal Deposit Insurance - MFS Mid-Cap Growth Portfolio
Corporation, the Federal Reserve - MFS Growth and Income Portfolio
Board or any other agency. - MFS Total Return Portfolio
MANAGED BY MORGAN STANLEY ASSET MANAGEMENT
- International Diversified Equities Portfolio
- Worldwide High Income Portfolio
- Technology Portfolio
MANAGED BY PUTNAM INVESTMENT MANAGEMENT, INC.
- Putnam Growth Portfolio
- International Growth and Income Portfolio
- Emerging Markets Portfolio
MANAGED BY SUNAMERICA ASSET MANAGEMENT CORP.
- Aggressive Growth Portfolio
- "Dogs" of Wall Street Portfolio
- SunAmerica Balanced Portfolio
- High-Yield Bond Portfolio
- Cash Management Portfolio
- Blue Chip Growth Portfolio
- Growth Opportunities Portfolio
</TABLE>

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
<PAGE> 6

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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
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Anchor National's Annual Report on Form 10-K for the year ended December 31,
1999 is incorporated herein by reference.

All documents or reports filed by Anchor National under Section 13(a), 13(c),
14, or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act") after the effective date of this prospectus are also incorporated by
reference. Statements contained in this prospectus and subsequently filed
documents which are incorporated by reference or deemed to be incorporated by
reference are deemed to modify or supersede documents incorporated herein by
reference.

Anchor National files its Exchange Act documents and reports, including its
annual and quarterly reports on Form 10-K and Form 10-Q, electronically pursuant
to EDGAR under CIK No. 0000006342.

Anchor National is subject to the informational requirements of the Securities
and Exchange Act of 1934 (as amended). We file reports and other information
with the SEC to meet those requirements. You can inspect and copy this
information at SEC public facilities at the following locations:

WASHINGTON, DISTRICT OF COLUMBIA
450 Fifth Street, N.W., Room 1024
Washington, D.C. 20549

CHICAGO, ILLINOIS
500 West Madison Street
Chicago, IL 60661

NEW YORK, NEW YORK
7 World Trade Center, 13th Fl.
New York, NY 10048

To obtain copies by mail contact the Washington, D.C. location. After you pay
the fees as prescribed by the rules and regulations of the SEC, the required
documents are mailed.

Registration statements under the Securities Act of 1933, as amended, related to
the contracts offered by this prospectus are on file with the SEC. This
prospectus does not contain all of the information contained in the registration
statements and exhibits. For further information regarding the separate account,
Anchor National and its general account, the Variable Portfolios and the
contract, please refer to the registration statements and exhibits.

The SEC also maintains a website (http://www.sec.gov) that contains the SAI,
materials incorporated by reference and other information filed electronically
with the SEC by Anchor National.

Anchor National will provide without charge to each person to whom this
prospectus is delivered, upon written or oral request, a copy of the above
documents incorporated by reference. Requests for these documents should be
directed to Anchor National's Annuity Service Center, as follows:
Anchor National Life Insurance Company
Annuity Service Center
P.O. Box 54299
Los Angeles, California 90054-0299
Telephone Number: (800) 445-SUN2

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SECURITIES AND EXCHANGE COMMISSION POSITION ON INDEMNIFICATION
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Indemnification for liabilities arising under the Securities Act of 1933 (the
"Act") is provided to Anchor National's officers, directors and controlling
persons. The SEC has advised that it believes such indemnification is against
public policy under the Act and unenforceable. If a claim for indemnification
against such liabilities (other than for Anchor National's payment of expenses
incurred or paid by its directors, officers or controlling persons in the
successful defense of any legal action) is asserted by a director, officer or
controlling person of Anchor National in connection with the securities
registered under this prospectus, Anchor National will submit to a court with
jurisdiction to determine whether the indemnification is against public policy
under the Act. Anchor National will be governed by final judgment of the issue.
However, if in the opinion of Anchor National's counsel this issue has been
determined by controlling precedent, Anchor National will not submit the issue
to a court for determination.

2
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<TABLE>
<S> <C> <C>
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TABLE OF CONTENTS
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE.............. 2
SECURITIES AND EXCHANGE COMMISSION POSITION ON
INDEMNIFICATION............................................ 2
GLOSSARY..................................................... 3
FEE TABLES................................................... 4
Sales Charge........................................... 4
Transfer Fee........................................... 4
Contract Maintenance Fee............................... 4
Annual Separate Account Expenses....................... 4
Portfolio Expenses..................................... 4
EXAMPLES..................................................... 5
THE POLARIS(II) A-CLASS VARIABLE ANNUITY..................... 6
PURCHASING A POLARIS(II) A-CLASS VARIABLE ANNUITY............ 6
Allocation of Purchase Payments........................ 6
Accumulation Units..................................... 7
Free Look.............................................. 7
INVESTMENT OPTIONS........................................... 7
Variable Portfolios.................................... 7
Anchor Series Trust.................................... 7
SunAmerica Series Trust................................ 8
Fixed Account Options.................................. 8
Market Value Adjustment ("MVA")........................ 8
Transfers During the Accumulation Phase................ 9
Dollar Cost Averaging.................................. 10
Asset Allocation Rebalancing Program................... 10
Principal Advantage Program............................ 11
Voting Rights.......................................... 11
Substitution........................................... 11
ACCESS TO YOUR MONEY......................................... 11
Systematic Withdrawal Program.......................... 11
Minimum Contract Value................................. 11
DEATH BENEFIT................................................ 11
EXPENSES..................................................... 12
Insurance Charges...................................... 12
Sales Charge........................................... 13
Reducing Your Sales Charges............................ 13
Letter of Intent....................................... 13
Rights of Accumulation................................. 14
Purchase Payments Subject to a Withdrawal Charge....... 14
Investment Charges..................................... 14
Transfer Fee........................................... 14
Premium Tax............................................ 14
Income Taxes........................................... 15
Reduction or Elimination of Certain Charges and
Expenses, and Additional Amounts Credited............. 15
INCOME OPTIONS............................................... 15
Annuity Date........................................... 15
Income Options......................................... 15
Fixed or Variable Income Payments...................... 16
Income Payments........................................ 16
Transfers During the Income Phase...................... 16
Deferment of Payments.................................. 16
The Income Protector Feature........................... 16
TAXES........................................................ 18
Annuity Contracts in General........................... 18
Tax Treatment of Distributions -
Non-Qualified Contracts............................... 18
Tax Treatment of Distributions -
Qualified Contracts................................... 18
Minimum Distributions.................................. 18
Diversification........................................ 18
PERFORMANCE.................................................. 19
OTHER INFORMATION............................................ 19
Anchor National........................................ 19
The Separate Account................................... 19
The General Account.................................... 19
Distribution of the Contract........................... 19
Administration......................................... 20
Legal Proceedings...................................... 20
Ownership.............................................. 20
Custodian.............................................. 20
Independent Accountants................................ 20
Registration Statement................................. 20
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION.....
21
APPENDIX A -- CONDENSED FINANCIAL INFORMATION................ A-1
APPENDIX B -- MARKET VALUE ADJUSTMENT........................ B-1
APPENDIX C -- PREMIUM TAXES.................................. C-1
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GLOSSARY
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We have capitalized some of the technical terms used in this
prospectus. To help you understand these terms, we have defined
them in this glossary.
ACCUMULATION PHASE - The period during which you invest money in
your contract.
ACCUMULATION UNITS - A measurement we use to calculate the value of
the variable portion of your contract during the Accumulation
Phase.
ANNUITANT(S) - The person(s) on whose life (lives) we base income
payments.
ANNUITY DATE - The date on which income payments are to begin, as
selected by you.
ANNUITY UNITS - A measurement we use to calculate the amount of
income payments you receive from the variable portion of your
contract during the Income Phase.
BENEFICIARY - The person designated to receive any benefits under
the contract if you or the Annuitant dies.
GROSS PURCHASE PAYMENTS - The money you give us to buy the
contract, as well as any additional money you give us to invest in
the contract after you own it. Gross Purchase Payments do not
reflect the reduction of the sales charge.
INCOME PHASE - The period during which we make income payments to
you.
IRS - The Internal Revenue Service.
NON-QUALIFIED (CONTRACT) - A contract purchased with after-tax
dollars. In general, these contracts are not under any pension
plan, specially sponsored program or individual retirement account
("IRA").
PURCHASE PAYMENTS - The portion of your Gross Purchase Payments
which we invest in your contract. We calculate this amount by
deducting the applicable sales charge from your Gross Purchase
Payments.
QUALIFIED (CONTRACT) - A contract purchased with pre-tax dollars.
These contracts are generally purchased under a pension plan,
specially sponsored program or IRA.
TRUSTS - Refers to the Anchor Series Trust and the SunAmerica
Series Trust collectively.
VARIABLE PORTFOLIO(S) - The variable investment options available
under the contract. Each Variable Portfolio has its own investment
objective and is invested in the underlying investments of the
Anchor Series Trust or the SunAmerica Series Trust.
</TABLE>

ALL FINANCIAL REPRESENTATIVES THAT SELL THE CONTRACTS OFFERED BY THIS PROSPECTUS
ARE REQUIRED TO DELIVER A PROSPECTUS.

3
<PAGE> 8

OWNER TRANSACTION EXPENSES

SALES CHARGE

<TABLE>
<CAPTION>
SALES CHARGE AS A
INVESTMENT AMOUNT (AS DEFINED PERCENTAGE OF GROSS
IN SALES CHARGE SECTION ON PAGE 14) PURCHASE PAYMENT INVESTED*
-------------------------------- --------------------------
<S> <C>
Less than $50,000.................... 5.75%
$50,000 but less than $100,000....... 4.75%
$100,000 but less than $250,000...... 3.50%
$250,000 but less than $500,000...... 2.50%
$500,000 but less than $1,000,000.... 2.00%
$1,000,000 or more................... 0.50%**
</TABLE>

* Your gross purchase payment may qualify for a reduced sales charge. SEE
EXPENSES SECTION ON PAGE 12.
** A withdrawal charge of 0.50% applies to gross purchase payments subject to a
0.50% sales charge if invested less than 12 months at the time of withdrawal.

<TABLE>
<S> <C>
TRANSFER FEE..................... No charge for first 15 transfers
each year; thereafter, fee is $25
($10 in Pennsylvania and Texas)
per transfer
</TABLE>

CONTRACT MAINTENANCE FEE . . . . . . . . . . . . . . . . . . . None

ANNUAL SEPARATE ACCOUNT EXPENSES
(AS A PERCENTAGE OF AVERAGE ACCOUNT VALUE)

<TABLE>
<S> <C>
Mortality and Expense Risk Charge....................... 0.70%
Distribution Expense Charge............................. 0.15%
-----
TOTAL SEPARATE ACCOUNT EXPENSES..................... 0.85%
=====
</TABLE>

PORTFOLIO EXPENSES
ANCHOR SERIES TRUST
(AS A PERCENTAGE OF AVERAGE NET ASSETS FOR THE TRUST'S FISCAL YEAR ENDED
DECEMBER 31, 1999)

SUNAMERICA SERIES TRUST
(AS A PERCENTAGE OF AVERAGE NET ASSETS AFTER REIMBURSEMENT OR WAIVER OF EXPENSES
FOR THE TRUST'S FISCAL YEAR ENDED JANUARY 31, 2000)

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL ANNUAL
PORTFOLIO FEE EXPENSES EXPENSES
<S> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Technology**** 1.20% 0.35% 1.55%
-----------------------------------------------------------------------------------------------------------
Emerging Markets*** 1.25% 0.65% 1.90%
-----------------------------------------------------------------------------------------------------------
International Diversified Equities 1.00% 0.22% 1.22%
-----------------------------------------------------------------------------------------------------------
Global Equities 0.72% 0.12% 0.84%
-----------------------------------------------------------------------------------------------------------
International Growth and Income 0.98% 0.23% 1.21%
-----------------------------------------------------------------------------------------------------------
Growth Opportunities**** 0.75% 0.25% 1.00%
-----------------------------------------------------------------------------------------------------------
Aggressive Growth 0.70% 0.05% 0.75%
-----------------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth* 0.75% 0.40% 1.15%**
-----------------------------------------------------------------------------------------------------------
Real Estate 0.80% 0.12% 0.92%
-----------------------------------------------------------------------------------------------------------
Blue Chip Growth**** 0.70% 0.15% 0.85%
-----------------------------------------------------------------------------------------------------------
Putnam Growth 0.76% 0.04% 0.80%
-----------------------------------------------------------------------------------------------------------
Goldman Sachs Research**** 1.20% 0.15% 1.35%
-----------------------------------------------------------------------------------------------------------
MFS Growth and Income 0.70% 0.05% 0.75%
-----------------------------------------------------------------------------------------------------------
Alliance Growth 0.60% 0.03% 0.63%
-----------------------------------------------------------------------------------------------------------
"Dogs" of Wall Street*** 0.60% 0.07% 0.67%
-----------------------------------------------------------------------------------------------------------
Davis Venture Value 0.71% 0.03% 0.74%
-----------------------------------------------------------------------------------------------------------
Federated Value 0.71% 0.06% 0.77%
-----------------------------------------------------------------------------------------------------------
Growth-Income 0.53% 0.03% 0.56%
-----------------------------------------------------------------------------------------------------------
Telecom Utility+ 0.75% 0.09% 0.84%
-----------------------------------------------------------------------------------------------------------
Asset Allocation 0.58% 0.05% 0.63%
-----------------------------------------------------------------------------------------------------------
MFS Total Return 0.66% 0.09% 0.75%
-----------------------------------------------------------------------------------------------------------
SunAmerica Balanced 0.62% 0.04% 0.66%
-----------------------------------------------------------------------------------------------------------
Worldwide High Income 1.00% 0.12% 1.12%
-----------------------------------------------------------------------------------------------------------
High-Yield Bond 0.62% 0.05% 0.67%
-----------------------------------------------------------------------------------------------------------
Corporate Bond 0.62% 0.09% 0.71%
-----------------------------------------------------------------------------------------------------------
Global Bond 0.69% 0.15% 0.84%
-----------------------------------------------------------------------------------------------------------
Cash Management 0.49% 0.04% 0.53%
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
</TABLE>

* Absent fee waivers or reimbursement of expenses by the adviser, the Total
Annual Expenses during the last fiscal year for the MFS Mid-Cap Growth
Portfolio would have been (1.17%).
** Annualized

*** Absent recoupment of expenses by the adviser, the Total Annual Expenses
during the last fiscal year for the "Dogs" of Wall Street Portfolio would
have been 0.67% and for the Emerging Markets Portfolio (1.77%). For the
"Dogs" of Wall Street portfolio for fiscal year ended January 31, 2000,
the adviser recouped prior year expense reimbursements that were
mathematically insignificant, resulting in the expense ratio before and
after the recoupment remaining at .67%.
**** This portfolio was not available for sale during fiscal year 2000. The
percentages are based on estimated amounts for the current fiscal year.
+ Formerly named Utility Portfolio. The name change will not result in any
modifications to the portfolio's principal investment goal or fundamental
investment policies.

THE ABOVE PORTFOLIO EXPENSES WERE PROVIDED BY THE TRUSTS. WE HAVE NOT
INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION.

4
<PAGE> 9

You will pay the following expenses on a $1,000 investment in each Variable
Portfolio, assuming a 5% annual return on assets and a sales charge of 5.75% as
well as investment management expenses after waiver, reimbursement or
recoupment, if applicable. At the 5.75% sales charge level, we do not deduct any
additional fees or charges when you surrender your contract.*

<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
Capital Appreciation $73 $103 $135 $227
-------------------------------------------------------------------------------------------------------
Growth $73 $105 $138 $233
-------------------------------------------------------------------------------------------------------
Government and Quality Bond $73 $103 $135 $226
-------------------------------------------------------------------------------------------------------
Technology $82 $125 $167 $262
-------------------------------------------------------------------------------------------------------
Emerging Markets $85 $139 $195 $347
-------------------------------------------------------------------------------------------------------
International Diversified Equities $78 $119 $162 $282
-------------------------------------------------------------------------------------------------------
Global Equities $74 $108 $144 $244
-------------------------------------------------------------------------------------------------------
International Growth and Income $78 $119 $162 $281
-------------------------------------------------------------------------------------------------------
Growth Opportunities $76 $110 $143 $219
-------------------------------------------------------------------------------------------------------
Aggressive Growth $74 $105 $139 $235
-------------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth $78 $117 $159 $275
-------------------------------------------------------------------------------------------------------
Real Estate $75 $110 $148 $252
-------------------------------------------------------------------------------------------------------
Blue Chip Growth $75 $106 $136 $207
-------------------------------------------------------------------------------------------------------
Putnam Growth $74 $107 $142 $240
-------------------------------------------------------------------------------------------------------
Goldman Sachs Research $80 $120 $158 $247
-------------------------------------------------------------------------------------------------------
MFS Growth and Income $74 $105 $139 $235
-------------------------------------------------------------------------------------------------------
Alliance Growth $72 $102 $133 $222
-------------------------------------------------------------------------------------------------------
"Dogs" of Wall Street $73 $103 $135 $227
-------------------------------------------------------------------------------------------------------
Davis Venture Value $73 $105 $139 $234
-------------------------------------------------------------------------------------------------------
Federated Value $74 $106 $140 $237
-------------------------------------------------------------------------------------------------------
Growth-Income $72 $100 $130 $215
-------------------------------------------------------------------------------------------------------
Telecom Utility $74 $108 $144 $244
-------------------------------------------------------------------------------------------------------
Asset Allocation $72 $102 $133 $222
-------------------------------------------------------------------------------------------------------
MFS Total Return $74 $105 $139 $235
-------------------------------------------------------------------------------------------------------
SunAmerica Balanced $73 $103 $135 $226
-------------------------------------------------------------------------------------------------------
Worldwide High Income $77 $116 $157 $272
-------------------------------------------------------------------------------------------------------
High-Yield Bond $73 $103 $135 $227
-------------------------------------------------------------------------------------------------------
Corporate Bond $73 $104 $137 $231
-------------------------------------------------------------------------------------------------------
Global Bond $74 $108 $144 $244
-------------------------------------------------------------------------------------------------------
Cash Management $71 $99 $128 $212
-------------------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------------------
</TABLE>

* We do not currently charge a withdrawal charge upon annuitization, unless the
contract is annuitized using the Income Protector feature. We assess any
applicable withdrawal charge upon annuitization under the Income Protector
feature assuming a full surrender of your contract.

EXPLANATION OF FEE TABLES AND EXAMPLES

1. The purpose of the Fee Tables is to show you the various expenses you would
incur directly and indirectly by investing in the contract.

2. For certain Variable Portfolios, the adviser, SunAmerica Asset Management
Corp., has voluntarily agreed to waive fees or reimburse certain expenses,
if necessary, to keep annual operating expenses at or below the lesser of
the maximum allowed by any applicable state expense limitations or the
following percentages of each Variable Portfolio's average net assets:
Emerging Markets (1.90%); Goldman Sachs Research (1.35%); Blue Chip Growth
(.85%); Growth Opportunities (1.00%); Technology (1.55%); SunAmerica
Balanced (1.00%); "Dogs" of Wall Street (.85%); Aggressive Growth (.90%);
Federated Value (1.03%); Utility (1.05%); Emerging Markets (1.90%);
International Growth and Income (1.60%); Mid-Cap Growth (1.15%) and Real
Estate (1.25%). The adviser also may voluntarily waive or reimburse
additional amounts to increase a Variable Portfolio's investment return. All
waivers and/or reimbursements may be terminated at any time. Furthermore,
the adviser may recoup any waivers or reimbursements within two years after
such waivers or reimbursements are granted, provided that the Variable
Portfolio is able to make such payment and remain in compliance with the
foregoing expense limitations.

3. The Examples assume that no transfer fees were imposed. Although premium
taxes may apply in certain states, they are not reflected in the Examples.

4. THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

THE HISTORICAL ACCUMULATION VALUES ARE CONTAINED IN APPENDIX A -- CONDENSED
FINANCIAL INFORMATION.

5
<PAGE> 10

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THE POLARIS(II) A-CLASS VARIABLE ANNUITY
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An annuity is a contract between you and an insurance company. You are the owner
of the contract. The contract provides three main benefits:

- Tax Deferral: This means that you do not pay taxes on your earnings from
the annuity until you withdraw them.

- Death Benefit: If you die during the Accumulation Phase, the insurance
company pays a death benefit to your Beneficiary.

- Guaranteed Income: If elected, you receive a stream of income for your
lifetime, or another available period you select.

Tax-qualified retirement plans (e.g., IRAs, 401(k) or 403(b) plans) defer
payment of taxes on earnings until withdrawal. If you are considering funding a
tax-qualified retirement plan with an annuity, you should know that an annuity
does not provide any additional tax deferral treatment of earnings beyond the
treatment provided by the tax-qualified retirement plan itself. However,
annuities do provide other features and benefits which may be valuable to you.
You should fully discuss your purchase decision with your financial
representative.

This annuity was developed to help you contribute to your retirement savings.
This annuity works in two stages, the Accumulation Phase and the Income Phase.
Your contract is in the Accumulation Phase during the period when you make
payments into the contract. The Income Phase begins when you request us to start
making income payments to you out of the money accumulated in your contract.

The contract is called a "variable" annuity because it allows you to invest in
portfolios which, like mutual funds, vary with market conditions. You can gain
or lose money if you invest in these Variable Portfolios. The amount of money
you accumulate in your contract depends on the performance of the Variable
Portfolios in which you invest. This contract currently offers 30 Variable
Portfolios.

The contract also offers seven fixed account options for varying time periods.
Fixed account options earn interest at a rate set and guaranteed by Anchor
National. If you allocate money to the fixed account options, the amount of
money that accumulates in the contract depends on the total interest credited to
the particular fixed account option(s) in which you invest.

For more information on investment options available under this contract SEE
INVESTMENT OPTIONS ON PAGE 7.

This annuity is designed to assist in contributing to retirement savings of
investors whose personal circumstances allow for a long-term investment time
horizon. As a function of the Internal Revenue Code ("IRC"), you may be assessed
a 10% federal tax penalty on any withdrawal made prior to your reaching age
59 1/2.

Anchor National Life Insurance Company (Anchor National, The Company, Us, We)
issues the Polaris(II) A-Class Variable Annuity. When you purchase a Polaris(II)
A-Class Variable Annuity, a contract exists between you and Anchor National. The
Company is a stock life insurance company organized under the laws of the state
of Arizona. Its principal place of business is 1 SunAmerica Center, Los Angeles,
California 90067. The Company conducts life insurance and annuity business in
the District of Columbia and all states except New York. Anchor National is an
indirect, wholly owned subsidiary of American International Group, Inc. ("AIG"),
a Delaware corporation.
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PURCHASING A POLARIS(II) A-CLASS
VARIABLE ANNUITY
----------------------------------------------------------------
----------------------------------------------------------------

An initial Gross Purchase Payment is the money you give us to buy a contract.
Any additional money you give us to invest in the contract after purchase is a
subsequent Gross Purchase Payment.

The following chart shows the minimum initial and subsequent Gross Purchase
Payments permitted under your contract. These amounts depend upon whether a
contract is Qualified or Non-qualified for tax purposes. FOR FURTHER
EXPLANATION, SEE TAXES ON PAGE 18.

<TABLE>
<S> <C> <C>
-----------------------------------------------------------
Minimum Initial Minimum Subsequent
Gross Purchase Gross Purchase
Payment Payment
-----------------------------------------------------------
Qualified $2,000 $250
-----------------------------------------------------------
Non-Qualified $5,000 $500
-----------------------------------------------------------
</TABLE>

Prior Company approval is required to accept Gross Purchase Payments greater
than $1,500,000. The Company reserves the right to refuse any Gross Purchase
Payment including one which would cause the contract value or total Gross
Purchase Payments to exceed $1,500,000 at the time of the Gross Purchase
Payment. Additionally, the optional automatic payment plan allows you to make
subsequent Gross Purchase Payments of as little as $20.

We may refuse any Gross Purchase Payment. In general, we will not issue a
Qualified contract to anyone who is age 70 1/2 or older, unless it is shown that
the minimum distribution required by the IRS is being made. In addition we may
not issue a contract to anyone over age 90.

ALLOCATION OF PURCHASE PAYMENTS

A Purchase Payment is the portion of your Gross Purchase Payment which we invest
in your contract after we deduct the sales charge.

We invest your Purchase Payments in the fixed and variable investment options
according to your instructions. If we receive a Purchase Payment without
allocation instructions, we invest the money according to your last allocation
instructions. SEE INVESTMENT OPTIONS BELOW.

6
<PAGE> 11

In order to issue your contract, we must receive your completed application,
Purchase Payment allocation instructions and any other required paperwork at our
principal place of business. We allocate your initial Purchase Payment within
two days of receiving it. If we do not have complete information necessary to
issue your contract, we will contact you. If we do not have the information
necessary to issue your contract within 5 business days we will:

- Send your money back to you; or

- Ask your permission to keep your money until we get the information
necessary to issue the contract.

ACCUMULATION UNITS

When you allocate a Purchase Payment to the Variable Portfolios, we credit your
contract with Accumulation Units of the separate account funding the Polaris(II)
A-Class annuity. We base the number of Accumulation Units you receive on the
value of the Variable Portfolio as of the day we receive your money, if we
receive it before 1 p.m. Pacific Standard Time, or on the next business day's
unit value if we receive your money after 1 p.m. Pacific Standard Time. The
value of an Accumulation Unit goes up and down based on the performance of the
Variable Portfolios.

We calculate the value of an Accumulation Unit each day that the New York Stock
Exchange ("NYSE") is open as follows:

1. We determine the total value of money invested in a particular Variable
Portfolio;

2. We subtract from that amount all applicable insurance charges; and

3. We divide this amount by the number of outstanding Accumulation Units at
the end of the given NYSE business day.

We determine the number of Accumulation Units credited to your contract by
dividing the Purchase Payment by the Accumulation Unit value for the specific
Variable Portfolio.

EXAMPLE:

We receive a $25,000 Gross Purchase Payment from you on Wednesday which you
allocate to the Global Bond Portfolio. After we deduct the sales charge,
the net amount to be invested of your Gross Purchase Payment is $23,562.50.
We determine that the value of an Accumulation Unit for the Global Bond
Portfolio is $11.10 when the NYSE closes on Wednesday. We then divide
$23,562.50 by $11.10 and credit your contract on Wednesday night with
2,122.747748 Accumulation Units for the Global Bond Portfolio.

Performance of the Variable Portfolios and the insurance charges under your
contract affect Accumulation Unit values. These factors cause the value of your
contract to go up and down.

FREE LOOK
You may cancel your contract within ten days after receiving it (or longer if
required by state law). We call this a "free look." To cancel, you must mail the
contract along with your free look request to our Annuity Service Center at P.O.
Box 54299, Los Angeles, California 90054-0299. We will refund the value of your
contract on the day we receive your request, plus the sales charge we deducted.
The amount refunded may be more or less than the amount you originally invested.

Certain states require us to return your Gross Purchase Payments upon a free
look request. Additionally, all contracts issued as an IRA require the full
return of Gross Purchase Payments upon a free look. With respect to those
contracts, we reserve the right to put your money in the Cash Management
Portfolio during the free look period. If you cancel your contract during the
free look period, we return the greater of (1) your Gross Purchase Payment; or
(2) the value of your contract plus the sales charge we deducted. At the end of
the free look period, we allocate your money according to your instructions.

----------------------------------------------------------------
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INVESTMENT OPTIONS
----------------------------------------------------------------
----------------------------------------------------------------

VARIABLE PORTFOLIOS

The contract currently offers 30 Variable Portfolios. These Variable Portfolios
invest in shares of the Anchor Series Trust and the SunAmerica Series Trust (the
"Trusts"). Additional Variable Portfolios may be available in the future. The
Variable Portfolios operate similarly to a mutual fund but are only available
through the purchase of certain insurance contracts.

SunAmerica Asset Management Corp., an indirect wholly-owned subsidiary of AIG,
is the investment adviser to the Trusts. The Trusts serve as the underlying
investment vehicles for other variable annuity contracts issued by Anchor
National, and other affiliated/unaffiliated insurance companies. Neither Anchor
National nor the Trusts believe that offering shares of the Trusts in this
manner disadvantages you. The adviser monitors the Trusts for potential
conflicts.

The Variable Portfolios along with their respective subadvisers are listed
below:

ANCHOR SERIES TRUST

Wellington Management Company, LLP serves as subadviser to the Anchor Series
Trust portfolios. Anchor Series Trust has investment portfolios in addition to
those listed below which are not available for investment under the contract.
The 3 available investment portfolios are:

MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP

- Capital Appreciation Portfolio
- Growth Portfolio
- Government and Quality Bond Portfolio

7
<PAGE> 12

SUNAMERICA SERIES TRUST

Various subadvisers provide investment advice for the SunAmerica Series Trust
portfolios. SunAmerica Series Trust has investment portfolios in addition to
those listed below which are not available for investment under the contract.
The 27 available investment portfolios and the subadvisers are:

MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.

- Global Equities Portfolio
- Alliance Growth Portfolio
- Growth Income Portfolio

MANAGED BY DAVIS SELECTED ADVISERS, L.P.

- Davis Venture Value Portfolio
- Real Estate Portfolio

MANAGED BY FEDERATED INVESTORS

- Federated Value Portfolio
- Telecom Utility Portfolio
- Corporate Bond Portfolio

MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/GOLDMAN
SACHS ASSET MANAGEMENT INTERNATIONAL

- Asset Allocation Portfolio
- Global Bond Portfolio
- Goldman Sachs Research Portfolio

MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY

- MFS Mid-Cap Growth Portfolio
- MFS Growth and Income Portfolio
- MFS Total Return Portfolio

MANAGED BY MORGAN STANLEY ASSET MANAGEMENT

- International Diversified Equities Portfolio
- Worldwide High Income Portfolio
- Technology Portfolio

MANAGED BY PUTNAM INVESTMENT MANAGEMENT

- Putnam Growth Portfolio
- International Growth and Income Portfolio
- Emerging Markets Portfolio

MANAGED BY SUNAMERICA ASSET MANAGEMENT, INC.

- Aggressive Growth Portfolio
- "Dogs" of Wall Street Portfolio
- SunAmerica Balanced Portfolio
- High-Yield Bond Portfolio
- Cash Management Portfolio
- Blue Chip Growth Portfolio
- Growth Opportunities Portfolio

You should read the attached prospectuses for the Trusts carefully. These
prospectuses contain detailed information about the Variable Portfolios,
including each Variable Portfolio's investment objective and risk factors.

FIXED ACCOUNT OPTIONS

The contract also offers seven fixed account options. Anchor National will
guarantee the interest rate earned on money you allocate to any of these fixed
account options. We currently offer fixed account options for periods of one,
three, five, seven and ten years, which we call guarantee periods. Additionally,
we guarantee the interest rate for money allocated to the 6-month DCA fixed
account and/or the 1-year DCA fixed account (the "DCA fixed accounts") which are
available only in conjunction with the Dollar Cost Averaging Program. Please see
the section on DOLLAR COST AVERAGING ON PAGE 10 for additional information
about, including limitations on, and the availability and operation of the DCA
fixed accounts. The DCA fixed accounts are only available for new Purchase
Payments.

Each guarantee period may offer a different interest rate but will never be less
than an annual effective rate of 3%. Once established the rates for specified
payments do not change during the guarantee period. The guarantee period is that
period for which we credit the applicable rate (one, three, five, seven or ten
years).

There are three scenarios in which you may put money into the fixed account
options other than the DCA fixed account options. In each scenario your money
may be credited a different rate of interest as follows:

- Initial Rate: Rate credited to new Purchase Payments allocated to the
fixed account when you purchase your contract.

- Current Rate: Rate credited to subsequent Purchase Payments allocated to
the fixed account.

- Renewal Rate: Rate credited to money transferred from a fixed account or
a Variable Portfolio into a fixed account and to money remaining in a
fixed account after expiration of a guarantee period.

When a guarantee period ends, you may leave your money in the same fixed
investment option. You may also reallocate your money to another fixed
investment option (other than the DCA fixed accounts) or to the Variable
Portfolios. If you want to reallocate your money to a different fixed account
option or Variable Portfolio, you must contact us within 30 days after the end
of the current interest guarantee period and instruct us how to reallocate the
money. We do not contact you. If we do not hear from you, your money will remain
in the same fixed account option, where it will earn interest at the renewal
rate then in effect for the fixed account option.

The DCA fixed accounts also credit a fixed rate of interest. Interest is
credited to amounts allocated to the 6-month or 1-year DCA fixed account while
your investment is systematically transferred to the Variable Portfolios. The
rates applicable to the DCA fixed accounts may differ from each other and/or the
other fixed account options. See DOLLAR COST AVERAGING ON PAGE 10 for more
information.

MARKET VALUE ADJUSTMENT ("MVA")

NOTE: THE FOLLOWING DISCUSSION APPLIES TO THE 3, 5, 7 AND 10-YEAR FIXED ACCOUNT
OPTIONS, ONLY. THESE OPTIONS ARE NOT AVAILABLE IN ALL STATES. PLEASE CONTACT
YOUR FINANCIAL REPRESENTATIVE FOR MORE INFORMATION.

If you take money out of the 3, 5, 7 or 10-year fixed account options before the
end of the guarantee period, we make an

8
<PAGE> 13

adjustment to your contract (the "MVA"). The MVA reflects any difference in the
interest rate environment between the time you place your money in the fixed
account option and the time when you withdraw or transfer that money. This
adjustment can increase or decrease your contract value. You have 30 days after
the end of each guarantee period to reallocate your funds without incurring any
MVA.

We calculate the MVA by doing a comparison between current rates and the rate
being credited to you in the fixed account option. For the current rate we use a
rate being offered by us for a guarantee period that is equal to the time
remaining in the guarantee period from which you seek withdrawal. If we are not
currently offering a guarantee period for that period of time, we determine an
applicable rate by using a formula to arrive at a number between the interest
rates currently offered for the two closest periods available.

Generally, if interest rates drop between the time you put your money into the
fixed account options and the time you take it out, we credit a positive
adjustment to your contract. Conversely, if interest rates increase during the
same period, we post a negative adjustment to your contract.

Where the MVA is negative, we first deduct the adjustment from any money
remaining in the fixed account option. If there is not enough money in the fixed
account option to meet the negative deduction, we deduct the remainder from your
withdrawal. Where the MVA is positive, we add the adjustment to your withdrawal
amount.

Anchor National does not assess a MVA against withdrawals under the following
circumstances:

- If made within 30 days after the end of a guarantee period;

- If made to pay contract charges;

- Upon payment of a death benefit; or

- Upon annuitization, if occurring on the latest Annuity Date.

APPENDIX B shows how we calculate the MVA.

TRANSFERS DURING THE ACCUMULATION PHASE

During the Accumulation Phase you may transfer funds between the Variable
Portfolios and/or the fixed account options. Funds already in your contract
cannot be transferred into the DCA fixed accounts. You must transfer at least
$100. If less than $100 will remain in any Variable Portfolio after a transfer,
that amount must be transferred as well.

You may request transfers of your account value between the Variable Portfolios
and/or the fixed account options in writing or by telephone. Additionally, you
may access your account and request transfers between Variable Portfolios and/or
the fixed account options through SunAmerica's website
(http://www.sunamerica.com). We currently allow 15 free transfers per contract
per year. We charge $25 ($10 in Pennsylvania and Texas) for each additional
transfer in any contract year. Transfers resulting from your participation in
the DCA program count against your 15 free transfers per contract year. However,
transfers resulting from your participation in the automatic asset rebalancing
program do not count against your 15 free transfers.

We accept transfer requests by telephone unless you tell us not to on your
contract application. When receiving instructions over the telephone or the
internet, we follow appropriate procedures to provide reasonable assurance that
the transactions executed are genuine. Thus, we are not responsible for any
claim, loss or expense from any error resulting from instructions received over
the telephone. If we fail to follow our procedures, we may be liable for any
losses due to unauthorized or fraudulent instructions.

We may limit the number of transfers in any contract year or refuse any transfer
request for you or others invested in the contract if we believe that excessive
trading or a specific transfer request or group transfer requests may have a
detrimental effect on unit values or the share prices of the underlying Variable
Portfolios.

Where permitted by law, we may accept your authorization for a third party to
make transfers for you subject to our rules. We reserve the right to suspend or
cancel such acceptance at any time and will notify you accordingly.
Additionally, we may restrict the investment options available for transfers
during any period in which such third party acts for you. We notify such third
party beforehand regarding any restrictions. However, we will not enforce these
restrictions if we are satisfied that:

- such third party has been appointed by a court of competent jurisdiction
to act on your behalf; or

- such third party is a trustee/fiduciary for you or appointed by you to
act on your behalf for all your financial affairs.

We may provide administrative or other support services to independent third
parties you authorize to make transfers on your behalf. We do not currently
charge you extra for providing these support services. This includes, but is not
limited to, transfers between investment options in accordance with market
timing strategies. Such independent third parties may or may not be appointed
with us for the sale of annuities. However, WE DO NOT ENGAGE ANY THIRD PARTIES
TO OFFER INVESTMENT ALLOCATION SERVICES OF ANY TYPE. WE TAKE NO RESPONSIBILITY
FOR THE INVESTMENT ALLOCATION AND TRANSFERS TRANSACTED ON YOUR BEHALF BY SUCH
THIRD PARTIES OR FOR ANY INVESTMENT ALLOCATION RECOMMENDATIONS MADE BY SUCH
PARTIES.

For information regarding transfers during the Income Phase, SEE INCOME OPTIONS
ON PAGE 15.

We reserve the right to modify, suspend, waive or terminate these transfer
provisions at any time.

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<PAGE> 14

DOLLAR COST AVERAGING

The DCA program allows you to invest gradually in the Variable Portfolios. Under
the program you systematically transfer a set dollar amount or percentage of
portfolio value from one Variable Portfolio or the 1-year fixed account option
(source accounts) to any other Variable Portfolio. Transfers may be monthly or
quarterly. You may change the frequency at any time by notifying us in writing.
The minimum transfer amount under the DCA program is $100, regardless of the
source account.

We also offer the 6-month and 1-year DCA fixed accounts exclusively to
facilitate this program. The DCA fixed accounts only accept new Purchase
Payments. You cannot transfer money already in your contract into these options.
When you allocate a Purchase Payment into a DCA fixed account, your money is
transferred into the Variable Portfolios over the selected 6-month or 1-year
period. You cannot change the option or the frequency of transfers once
selected.

If allocated to the 6-month DCA fixed account, we transfer your money over a
maximum of 6 monthly transfers. We base the actual number of transfers on the
total amount allocated to the account. For example, if you allocate $500 to the
6-month DCA fixed account, we transfer your money over a period of five months,
so that each payment complies with the $100 per transfer minimum.

We determine the amount of the transfers from the 1-year DCA fixed account based
on:

- the total amount of money allocated to the account; and

- the frequency of transfers selected.

For example, let's say you allocate $1,000 to the 1-year DCA fixed account. You
select monthly transfers. We completely transfer all of your money to the
selected investment options over a period of ten months.

You may terminate your DCA program at any time. If money remains in the DCA
fixed accounts, we transfer the remaining money to the 1-year fixed account
option, unless we receive different instructions from you. Transfers resulting
from a termination of this program do not count towards your 15 free transfers.

The DCA program is designed to lessen the impact of market fluctuations on your
investment. However, we cannot ensure that you will make a profit. When you
elect the DCA program, you are continuously investing in securities regardless
of fluctuating price levels. You should consider your tolerance for investing
through periods of fluctuating price levels.

We reserve the right to modify, suspend or terminate this program at any time.

EXAMPLE:
Assume that you want to gradually move $750 each quarter from the Cash
Management Portfolio to the Aggressive Growth Portfolio over six quarters.
You set up dollar cost averaging and purchase Accumulation Units at the
following values:

<TABLE>
<CAPTION>
-------------------------------------------
ACCUMULATION UNITS
QUARTER UNIT PURCHASED
-------------------------------------------
<S> <C> <C>
1 $ 7.50 100
2 $ 5.00 150
3 $10.00 75
4 $ 7.50 100
5 $ 5.00 150
6 $ 7.50 100
-------------------------------------------
</TABLE>

You paid an average price of only $6.67 per Accumulation Unit over six
quarters, while the average market price actually was $7.08. By investing
an equal amount of money each month, you automatically buy more
Accumulation Units when the market price is low and fewer Accumulation
Units when the market price is high. This example is for illustrative
purposes only.

ASSET ALLOCATION REBALANCING PROGRAM

Earnings in your contract may cause the percentage of your investment in each
investment option to differ from your original allocations. The Automatic Asset
Rebalancing Program addresses this situation. At your election, we periodically
rebalance your investments in the Variable Portfolios to return your allocations
to their original percentages. Asset rebalancing typically involves shifting a
portion of your money out of an investment option with a higher return into an
investment option with a lower return.

At your request, rebalancing occurs on a quarterly, semiannual or annual basis.
Transfers made as a result of rebalancing do not count against your 15 free
transfers for the contract year.

We reserve the right to modify, suspend or terminate this program at any time.

EXAMPLE:

Assume that you want your initial Purchase Payment split between two
Variable Portfolios. You want 50% in the Corporate Bond Portfolio and 50%
in the Growth Portfolio. Over the next calendar quarter, the bond market
does very well while the stock market performs poorly. At the end of the
calendar quarter, the Corporate Bond Portfolio now represents 60% of your
holdings because it has increased in value and the Growth Portfolio
represents 40% of your holdings. If you had chosen quarterly rebalancing,
on the last day of that quarter, we would sell some of your units in the
Corporate Bond Portfolio to bring its holdings back to 50% and use the
money to buy more units in the Growth Portfolio to increase those holdings
to 50%.

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<PAGE> 15

PRINCIPAL ADVANTAGE PROGRAM

The Principal Advantage Program allows you to invest in one or more Variable
Portfolios without putting your principal at direct risk. The program
accomplishes this by allocating your investment strategically between the fixed
account options and Variable Portfolios. You decide how much you want to invest
and approximately when you want a return of principal. We calculate how much of
your Purchase Payment to allocate to the particular fixed account option to
ensure that it grows to an amount equal to your total principal invested under
this program. We invest the rest of your principal in the Variable Portfolio(s)
of your choice.

We reserve the right to modify, suspend or terminate this program at any time.

EXAMPLE:

Assume that you want to allocate a portion of your initial Purchase Payment
of $100,000 to the fixed account option after we deduct sales charges. You
want the amount allocated to the fixed account option to grow to $100,000
in 7 years. If the 7-year fixed account option is offering a 5% interest
rate, we will allocate $71,069 to the 7-year fixed account option to ensure
that this amount will grow to $100,000 at the end of the 7-year period. The
remaining $28,931 may be allocated among the Variable Portfolios, as
determined by you, to provide opportunity for greater growth.

VOTING RIGHTS

Anchor National is the legal owner of the Trusts' shares. However, when a
Variable Portfolio solicits proxies in conjunction with a vote of shareholders,
we must obtain your instructions on how to vote those shares. We vote all of the
shares we own in proportion to your instructions. This includes any shares we
own on our own behalf. Should we determine that we are no longer required to
comply with these rules, we will vote the shares in our own right.

SUBSTITUTION

If underlying Trust portfolios become unavailable for investment, we may be
required to substitute shares of another underlying portfolio. We will seek
prior approval of the SEC and give you notice before substituting shares.
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ACCESS TO YOUR MONEY
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You can access money in your contract in two ways:

- by making a partial or total withdrawal, and/or;

- by receiving income payments during the Income Phase. SEE INCOME OPTIONS
ON PAGE 15.

We deduct a MVA if a partial withdrawal comes from the 3, 5, 7 or 10-year fixed
account prior to the end of the guarantee period. Additionally, a withdrawal
charge may apply in limited circumstances. If you withdraw your entire contract
value, we also deduct premium taxes if applicable. SEE EXPENSES ON PAGE 12.

Under certain Qualified plans, access to the money in your contract may be
restricted. Additionally, withdrawals made prior to age 59 1/2 may result in a
10% IRS penalty tax. SEE TAXES ON PAGE 18.

Under most circumstances, the partial withdrawal minimum is $1,000. We require
that the value left in your contract is at least $500 after the withdrawal. You
must send a written withdrawal request. Unless you provide us with different
instructions, partial withdrawals will be made pro rata from each Variable
Portfolio and the fixed account option(s) in which your contract is invested.

We may be required to suspend or postpone the payment of a withdrawal for any
period of time when: (1) the NYSE is closed (other than a customary weekend and
holiday closings); (2) trading with the NYSE is restricted; (3) an emergency
exists such that disposal of or determination of the value of shares of the
Variable Portfolios is not reasonably practicable; (4) the SEC, by order, so
permits for the protection of contract owners.

Additionally, we reserve the right to defer payments for a withdrawal from a
fixed account option. Such deferrals are limited to no longer than six months.

SYSTEMATIC WITHDRAWAL PROGRAM

During the Accumulation Phase, you may elect to receive periodic income payments
under the systematic withdrawal program. Under the program you may choose to
take monthly, quarterly, semiannual or annual payments from your contract.
Electronic transfer of these funds to your bank account is available. The
minimum amount of each withdrawal is $100. There must be at least $500 remaining
in your contract at all times. Withdrawals may be taxable and a 10% IRS penalty
tax may apply if you are under age 59 1/2. There is no additional charge for
participating in this program, although a withdrawal charge and a MVA may apply.
SEE EXPENSES ON PAGE 12. We reserve the right to modify, suspend or terminate
this program at any time.

MINIMUM CONTRACT VALUE

Where permitted by state law, we may terminate your contract if both of the
following occur: (1) your contract is less than $500 as a result of withdrawals;
and (2) you have not made any Purchase Payments during the past three years. We
will provide you with sixty days written notice. At the end of the notice
period, we will distribute the contract value to you.

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DEATH BENEFIT
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If you die during the Accumulation Phase of your contract, we pay a death
benefit to your Beneficiary. At the time you purchase your contract, you must
select one of the two death benefits described below. Once selected, you can not
change

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<PAGE> 16

your death benefit option. You should discuss the available options with your
financial representative to determine which option is best for you.

OPTION 1 - PURCHASE PAYMENT ACCUMULATION OPTION

The death benefit is the greater of:

1. the value of your contract at the time we receive satisfactory proof of
death; or

2. total Gross Purchase Payments less withdrawals (and any fees or charges
applicable to such withdrawals); or

3. total Purchase Payments less withdrawals (and any fees or charges
applicable to such withdrawals), compounded at a 4% annual growth rate
until the date of death (3% growth rate if 70 or older at the time of
contract issue) plus any Purchase Payments less withdrawals recorded
after the date of death (and any fees or charges applicable to such
withdrawals); or

4. the value of your contract on the seventh contract anniversary, plus any
Purchase Payments and less any withdrawals (and any fees or charges
applicable to such withdrawals) since the seventh contract anniversary,
all compounded at a 4% annual growth rate until the date of death (3%
growth rate if age 70 or older at the time of contract issue) plus any
Purchase Payments less withdrawals recorded after the date of death (and
any fees or charges applicable to such withdrawals).

OPTION 2 - MAXIMUM ANNIVERSARY OPTION

The death benefit is the greater of:

1. the value of your contract at the time we receive satisfactory proof of
death; or

2. total Gross Purchase Payments less withdrawals (and any fees or charges
applicable to such withdrawals); or

3. the maximum anniversary value on any contract anniversary prior to your
81st birthday. The anniversary value equals the value of your contract
on a contract anniversary plus any Purchase Payments and less any
withdrawals (and any fees or charges applicable to such withdrawals)
since that contract anniversary.

- you are over age 80 at the time of contract issue, or

- you are 90 or older at the time of your death.

We do not pay the death benefit if you die after you switch to the Income Phase.
However, if you die during the Income Phase, your Beneficiary receives any
remaining guaranteed income payments in accordance with the income option you
selected. SEE INCOME OPTIONS ON PAGE 15.

You name your Beneficiary. You may change the Beneficiary at any time, unless
you previously made an irrevocable Beneficiary designation.

We pay the death benefit when we receive satisfactory proof of death. We
consider the following satisfactory proof of death:

1. a certified copy of the death certificate; or
2. a certified copy of a decree of a court of competent jurisdiction as to
the finding of death; or
3. a written statement by a medical doctor who attended the deceased at the
time of death; or
4. any other proof satisfactory to us.

We may require additional proof before we pay the death benefit.

The death benefit payment must begin immediately upon receipt of all necessary
documents. In any event, the death benefit must be paid within 5 years of the
date of death unless the Beneficiary elects to have it payable in the form of an
income option. If the Beneficiary elects an income option, it must be paid over
the Beneficiary's lifetime or for a period not extending beyond the
Beneficiary's life expectancy. Income option payments must begin within one year
of your death.

If the Beneficiary is the spouse of a deceased owner, he or she can elect to
continue the contract at the then current value. If the Beneficiary/spouse
continues the contract, we do not pay a death benefit to him or her.

If a Beneficiary does not elect a specific form of pay out within 60 days of our
receipt of proof of death, we pay a lump sum death benefit to the Beneficiary.
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EXPENSES
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There are charges and expenses associated with your contract. These charges and
expenses reduce your investment return. We will not increase the sales,
insurance or withdrawal charges under your contract. However, the investment
charges under your contract may increase or decrease. Some states may require
that we charge less than the amounts described below.

INSURANCE CHARGES

The amount of this charge is 0.85% annually, of the value of your contract
invested in the Variable Portfolios. We deduct the charge daily. There is no
insurance charge deducted from amounts allocated to the fixed account options.

The insurance charge compensates us for the mortality and expense risks and the
costs of contract distribution assumed by Anchor National.

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<PAGE> 17

If these charges do not cover all of our expenses, we will pay the difference.
Likewise, if these charges exceed our expenses, we will keep the difference.

SALES CHARGE

We apply an up-front sales charge against the Gross Purchase Payments you make
to your contract. The sales charge equals a percentage of each Gross Purchase
Payment and varies with your investment amount.

Your investment amount is determined on the day we receive a Gross Purchase
Payment and is the greater of:

1. The sum of (a) the Gross Purchase Payment amount, (b) the current
contract value of this contract, and (c) the current contract value of
any eligible related contracts as defined under the Rights of
Accumulation section on page 14; or
2. The amount, if any, you agree to contribute to this contract and your
eligible related contracts over a 13-month period as designated by you
in a Letter of Intent (described below).

Eligible related contracts currently include any Anchor National American
Pathway, ICAP, Polaris, Polaris(II), Polaris(II) A-Class, Seasons and Seasons
Select contracts owned by you, your spouse and/or your children under age 21.

* Additionally, a withdrawal charge of 0.50% applies to gross purchase payments
subject to a 0.50% sales charge if invested less than 12 months at the time of
withdrawal. SEE PURCHASE PAYMENTS SUBJECT TO A WITHDRAWAL CHARGE ON PAGE 14.

We call the above investment levels "breakpoints." You can reduce your sales
charge by increasing your investment amount to reach the next breakpoint. For
example, an investment amount of $50,000 brings you to the first breakpoint and
entitles you to a reduced sales charge of 4.75%.

REDUCING YOUR SALES CHARGES

Our Letter of Intent and Rights of Accumulation features allow you to combine
your current Gross Purchase Payment with other Gross Purchase Payments and/or
contract values so that you may take advantage of the breakpoints in the sales
charge schedule.

LETTER OF INTENT

The Letter of Intent feature lets you establish an investment goal up-front so
that all Gross Purchase Payments you make during a designated 13-month period
receive the sales charge corresponding to your stated investment goal. When you
submit a signed Letter of Intent, we use the amount of your stated investment
goal to determine the sales charge on any Gross Purchase Payment you make during
the 13-month period as though the total amount of Gross Purchase Payments (your
investment goal) is invested as one lump-sum.

Gross Purchase Payments made to your Polaris(II) A-Class contract and purchase
payments made to any eligible related contract count towards your investment
goal. Additionally, Gross Purchase Payments made to your Polaris(II) A-Class
contract and purchase payments made to any eligible related contract within 90
days prior to our receipt of your Letter of Intent (but not prior to the issue
date of your Polaris(II) A-Class contract) may count towards meeting your
investment goal. If you use prior purchase payments towards satisfying your
investment goal, the Letter of Intent start date will be backdated to the
receipt date of the earliest prior purchase payment. If you wish to use prior
purchase payments towards meeting your investment goal, you or your financial
representative must inform us of such prior purchase payments at the time you
submit your Letter of Intent.

EXAMPLE:

Assume as part of your contract application you sign a Letter of Intent
indicating an investment goal of $50,000 over a 13-month period. The sales
charge corresponding to your investment goal is 4.75%. You make an initial
Gross Purchase Payment of $20,000. We deduct a reduced sales charge of
4.75% from your initial Gross Purchase Payment. Ten months later you make a
subsequent Gross Purchase Payment of $30,000. We again deduct a reduced
sales charge of 4.75% from your Gross Purchase Payment. Without a Letter of
Intent the sales charge for each Gross Purchase Payment would have been
5.75%.

You may submit a Letter of Intent at any time. If you choose to submit a Letter
of Intent when you apply for the contract, you must check the corresponding box
on the application and complete the appropriate form. If you elect to submit a
Letter of Intent after your contract is issued, you must complete the
appropriate form, which is available from your financial representative or our
Annuity Service Center.

You are not obligated to reach your investment goal. If you do not achieve your
investment goal by the end of the 13-month period or if you surrender or
annuitize your contract without having reached your investment goal, we will
deduct from your contract the difference between: (1) the sales charge
corresponding to the amount of Gross Purchase Payments made to your Polaris(II)
A-Class contract and purchase payments made to any eligible related contract
during the 13-month period; and (2) the sales charge you actually paid,
regardless of whether the original sales charge was based on

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<PAGE> 18

your Letter of Intent investment goal or Rights of Accumulation privileges. The
charges are deducted from your investment options in the same proportion as
their values are to your then current contract value. We will not deduct this
amount if a death benefit is paid on the contract prior to the end of the
13-month period.

You may increase your investment goal by sending us a written request at any
time during the 13-month period. Gross Purchase Payments made from the date of
such notice through the end of the original 13-month period will receive any
applicable reduction in sales charges. Sales charges on Gross Purchase Payments
received prior to the notice to increase your investment goal will not be
retroactively reduced.

The Letter of Intent feature may not be available in all states. Please contact
your financial representative regarding the availability of this feature in your
state.

We reserve the right to modify, suspend or terminate this program at any time.

RIGHTS OF ACCUMULATION

You may qualify for a reduced sales charge through Rights of Accumulation.
Rights of Accumulation involves combining your current Gross Purchase Payment
with the current contract values of this contract and eligible related contracts
so that you may reduce the sales charge on your current Gross Purchase
Payment(s) into this contract. The sales charge corresponding to this combined
investment amount is deducted from your current Gross Purchase Payment.

In order to use Rights of Accumulation to reduce your sales charge using
contracts other than your Polaris(II) A-Class contract, you or your financial
representative must inform us of the related contracts each time you make a
Gross Purchase Payment. The sales charge for Gross Purchase Payments submitted
using Rights of Accumulation privileges will be based on the breakpoint
corresponding to the sum of (1) your current Gross Purchase Payment; (2) your
current contract value; and (3) the current contract values of your eligible
related contracts.

For purposes of calculating your investment amount, the current contract value
is the value of your contract and any eligible related contracts as of the close
of the market on the last previous NYSE business day less any current day
withdrawals, adjusted for any current day transactions.

EXAMPLE:

Assume your contract has a current value of $20,000. You have a second
contract with us which qualifies for Rights of Accumulation that has a
current value of $25,000. You make a $5,000 Gross Purchase Payment and
inform us of your eligible related contracts at the time you make your
payment. The sales charge applicable to the current Gross Purchase Payment
is based on the sales charge corresponding to the sum of: (1) your current
Gross Purchase Payment ($5,000); (2) the current contract value of this
contract ($20,000); and (3) the current contract value of your related
contract ($25,000). The sum of these values is $50,000. We deduct the sales
charge corresponding to an investment amount of $50,000, or 4.75%, from
your $5,000 Gross Purchase Payment. Without the benefit of Rights of
Accumulation your sales charge would have been 5.75%.

Certain Rights of Accumulation privileges may not be available in your state.
Please contact your financial representative regarding possible state
limitations.

We reserve the right to modify, suspend or terminate this program at any time.

PURCHASE PAYMENTS SUBJECT TO A WITHDRAWAL CHARGE

Each Gross Purchase Payment qualifying for a sales charge of 0.50% (that is,
your investment amount is $1,000,000 or more) remains subject to a withdrawal
charge of 0.50%. The withdrawal charge applies to such Gross Purchase Payment or
any portion of it withdrawn if invested less than 12 months prior to such
withdrawal.

When calculating the withdrawal charge, we treat withdrawals as coming first
from the Purchase Payments that have been in your contract the longest. However,
for tax purposes, your withdrawals are considered earnings first, then Purchase
Payments.

Whenever possible, we deduct the withdrawal charge from the money remaining in
your contract. If you fully surrender your contract, we deduct any applicable
sales charge from the amount withdrawn.

We will not assess a withdrawal charge for money withdrawn to pay a death
benefit or to pay contract fees or charges. We will not assess a withdrawal
charge when you switch to the Income Phase, except when you elect to receive
income payments using the Income Protector program. If you elect to receive
income payments using the Income Protector program, we assess any applicable
withdrawal charge when calculating your Income Benefit Base. SEE INCOME OPTIONS
ON PAGE 15.

Withdrawals made prior to age 59 1/2 may result in a 10% IRS penalty tax. SEE
TAXES ON PAGE 18.

INVESTMENT CHARGES

Charges are deducted from your Variable Portfolios for the advisory and other
expenses of the Variable Portfolios. THE FEE TABLES ON PAGE 4 illustrate these
charges and expenses. For more detailed information on these investment charges,
refer to the prospectuses for the Trusts, enclosed or attached.

TRANSFER FEE

We currently permit 15 free transfers between investment options each contract
year. We charge you $25 for each additional transfer that contract year ($10 in
Pennsylvania and Texas). SEE INVESTMENT OPTIONS ON PAGE 7.

PREMIUM TAX

Certain states charge the Company a tax on the premiums you pay into the
contract. We deduct from your contract these

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<PAGE> 19

premium tax charges. Currently we deduct the charge for premium taxes when you
take a full withdrawal or begin the Income Phase of the contract. In the future,
we may assess this deduction at the time you put Purchase Payment(s) into the
contract or upon payment of a death benefit.

APPENDIX C provides more information about premium taxes.

INCOME TAXES

We do not currently deduct income taxes from your contract. We reserve the right
to do so in the future.

REDUCTION OR ELIMINATION OF CHARGES AND EXPENSES, AND ADDITIONAL AMOUNTS
CREDITED

Sometimes sales of the contracts to groups of similarly situated individuals may
lower our administrative and/or sales expenses. We reserve the right to reduce
or waive certain charges and expenses when this type of sale occurs. In
addition, we may also credit additional interest to policies sold to such
groups. We determine which groups are eligible for such treatment. Some of the
criteria we evaluate to make a determination are: size of the group; amount of
expected Purchase Payments; relationship existing between us and prospective
purchaser; nature of the purchase; length of time a group of contracts is
expected to remain active; purpose of the purchase and whether that purpose
increases the likelihood that our expenses will be reduced; and/or any other
factors that we believe indicate that administrative and/or sales expenses may
be reduced.

Anchor National may make such a determination regarding sales to its employees,
it affiliates' employees and employees of currently contracted broker-dealers;
its registered representatives and immediate family members of all of those
described.

We reserve the right to change or modify any such determination or the treatment
applied to a particular group, at any time.
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INCOME OPTIONS
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ANNUITY DATE

During the Income Phase, we use the money accumulated in your contract to make
regular income payments to you. You may switch to the Income Phase any time
after your 2nd contract anniversary. You select the month and year in which you
want income payments to begin. The first day of that month is the Annuity Date.
You may change your Annuity Date, so long as you do so at least seven days
before the income payments are scheduled to begin. Once you begin receiving
income payments, you cannot change your income option. Except as indicated under
Option 5 below, once you begin receiving income payments, you cannot access your
money through a withdrawal or surrender.

Income payments must begin on or before your 90th birthday or on your tenth
contract anniversary, whichever occurs later. If you do not choose an Annuity
Date, your income payments will automatically begin on this date. Certain states
may require your income payments to start earlier.

If the Annuity Date is past your 85th birthday, your contract could lose its
status as an annuity under Federal tax laws. This may cause you to incur adverse
tax consequences.

In addition, most Qualified contracts require you to take minimum distributions
after you reach age 70 1/2. SEE TAXES ON PAGE 18.

INCOME OPTIONS

Currently, this contract offers five income options. If you elect to receive
income payments but do not select an option, your income payments will be made
in accordance with option 4 for a period of 10 years. For income payments based
on joint lives, we pay according to option 3, for a period of 10 years.

We base our calculation of income payments on the life of the Annuitant and the
annuity rates set forth in your contract. As the contract owner, you may change
the Annuitant at any time prior to the Annuity Date. You must notify us if the
Annuitant dies before the Annuity Date and designate a new Annuitant.

OPTION 1 - LIFE INCOME ANNUITY

This option provides income payments for the life of the Annuitant. Income
payments stop when the Annuitant dies.

OPTION 2 - JOINT AND SURVIVOR LIFE ANNUITY

This option provides income payments for the life of the Annuitant and for the
life of another designated person. Upon the death of either person, we will
continue to make income payments during the lifetime of the survivor. Income
payments stop when the survivor dies.

OPTION 3 - JOINT AND SURVIVOR LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED

This option is similar to option 2 above, with an additional guarantee of
payments for at least 10 years or 20 years. If the Annuitant and the survivor
die before all of the guaranteed income payments have been made, the remaining
payments are made to the Beneficiary under your contract.

OPTION 4 - LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED

This option is similar to option 1 above. In addition, this option provides a
guarantee that income payments will be made for at least 10 or 20 years. You
select the number of years. If the Annuitant dies before all guaranteed income
payments are made, the remaining income payments go to the Beneficiary under
your contract.

OPTION 5 - INCOME FOR A SPECIFIED PERIOD

This option provides income payments for a guaranteed period, ranging from 5 to
30 years. If the Annuitant dies before all of the guaranteed income payments are
made, the remaining income payments are made to the Beneficiary under your
contract. Additionally, if variable income

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<PAGE> 20

payments are elected under this option, you (or the Beneficiary under the
contract if the Annuitant dies prior to all guaranteed payments being made) may
redeem the contract value after the Annuity Date. The amount available upon such
redemption would be the discounted present value of any remaining guaranteed
variable income payments. Any applicable withdrawal charges will be deducted
from the discounted value as if you fully surrendered your contract.

The value of an Annuity Unit, regardless of the option chosen, takes into
account the Mortality and Expense Risk Charge. Since Option 5 does not contain
an element of mortality risk, no benefit is derived from this charge.

Please read the Statement of Additional Information ("SAI") for a more detailed
discussion of the income options.

FIXED OR VARIABLE INCOME PAYMENTS

You can choose income payments that are fixed, variable or both. If at the date
when income payments begin you are invested in the Variable Portfolios only,
your income payments will be variable. If your money is only in fixed accounts
at that time, your income payments will be fixed in amount. Further, if you are
invested in both fixed and variable investment options when income payments
begin, your payments will be fixed and variable. If income payments are fixed,
Anchor National guarantees the amount of each payment. If the income payments
are variable the amount is not guaranteed.

INCOME PAYMENTS

We make income payments on a monthly, quarterly, semi-annual or annual basis.
You instruct us to send you a check or to have the payments directly deposited
into your bank account. If state law allows, we distribute annuities with a
contract value of $5,000 or less in a lump sum. Also, if the selected income
option results in income payments of less than $50 per payment, we may decrease
the frequency of the payments, state law allowing.

If you are invested in the Variable Portfolios after the Annuity Date your
income payments vary depending on four things:

- for life options, your age when payments begin, and;

- the value of your contract in the Variable Portfolios on the Annuity
Date, and;

- the 3.5% assumed investment rate used in the annuity table for the
contract, and;

- the performance of the Variable Portfolios in which you are invested
during the time you receive income payments.

If you are invested in both the fixed account options and the Variable
Portfolios after the Annuity Date, the allocation of funds between the fixed and
variable options also impacts the amount of your income payments.

TRANSFERS DURING THE INCOME PHASE

During the Income Phase, one transfer per month is permitted between the
Variable Portfolios. No other transfers are allowed during the Income Phase.

DEFERMENT OF PAYMENTS

We may defer making fixed payments for up to six months, or less if required by
law. Interest is credited to you during the deferral period.

THE INCOME PROTECTOR FEATURE

The Income Protector feature is a future "safety net" which offers you the
ability to receive a guaranteed fixed minimum retirement income when you switch
to the Income Phase. With the Income Protector feature you know the level of
minimum income that will be available to you upon annuitization, regardless of
fluctuating market conditions.

The Income Protector is a standard feature of your contract, if available in
your state. The feature is not available in California and may not be available
in other states. There is no additional charge associated with this feature.

We reserve the right to modify, suspend or terminate the Income Protector
feature at any time.

HOW WE DETERMINE THE AMOUNT OF YOUR MINIMUM GUARANTEED INCOME

We base the amount of minimum income available to you if you elect to receive
income payments using the Income Protector feature upon a calculation we call
the income benefit base.

The income benefit base is only a calculation. It does not represent a contract
value, nor does it guarantee performance of the Variable Portfolios in which you
invest.

Your income benefit base increases if you make subsequent Purchase Payments and
decreases if you withdraw money from your contract. The exact income benefit
base calculation is equal to (a) plus (b) minus (c) where:

(a) is equal to, for the first year of calculation, your initial Purchase
Payment, or for each subsequent year of calculation, the income benefit
base on the prior contract anniversary, and;

(b) is equal to the sum of all subsequent Purchase Payments made into the
contract since the last contract anniversary, and;

(c) is equal to all withdrawals and applicable fees and charges since the
last contract anniversary, in an amount proportionate to the amount by
which such withdrawals decreased your contract value.

ELECTING TO RECEIVE INCOME PAYMENTS

You may elect to begin the Income Phase of your contract using the Income
Protector feature ONLY within the 30 days after the seventh or later contract
anniversary.

16
<PAGE> 21

The contract anniversary prior to your election to begin receiving income
payments is your income benefit date. This is the date as of which we calculate
your income benefit base to use in determining your guaranteed minimum fixed
retirement income. Your final income benefit base is equal to (a) minus (b)
where:

(a) is equal to your income benefit base as of your income benefit date,
and;

(b) is equal to any partial withdrawals of contract value and any charges
applicable to those withdrawals and any withdrawal charges otherwise
applicable, calculated as if you fully surrender your contract as the
income benefit date, and any applicable premium taxes.

To arrive at the minimum guaranteed retirement income available to you we apply
to your final income benefit base the annuity rates stated in your Income
Protector endorsement for the income option you select. You then choose if you
would like to receive that income annually, semi-annually quarterly or monthly
for the time guaranteed under your selected income option. The income options
available when using the income protector feature to receive your retirement
income are:

- Life Annuity with 10 Years Guaranteed, or

- Joint and Survivor Life Annuity with 20 Years Guaranteed

At the time you elect to begin receiving income payments, we will calculate your
income payments using both your income benefit base and your contract value. We
will use the same income option for each calculation, however, the annuity
factors used to calculate your income under the Income Protector feature will be
different. You will receive whichever provides a greater stream of income. If
you elect to receive income payments using the Income Protector feature your
income payments will be fixed in amount. You are not required to use the Income
Protector feature to receive income payments.

NOTE TO QUALIFIED CONTRACT HOLDERS

Qualified contracts generally require that you select an income option which
does not exceed your life expectancy. That restriction, if it applies to you,
may limit your ability to use the Income Protector feature.

You may wish to consult your tax advisor for information concerning your
particular circumstances.

HYPOTHETICAL EXAMPLE OF THE OPERATION OF THE INCOME PROTECTOR FEATURE

This table assumes $100,000 initial investment, net of sales charges, in a
Non-qualified contract with no withdrawals, additional Purchase Payments or
premium taxes.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------
Minimum annual income if you elect to receive income payments
If at issue on contract anniversary . . .
you are . . . 7 10 15 20
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------
Male age 60* 6,108 6,672 7,716 8,832
-------------------------------------------------------------------------------------------------
Female age 60* 5,388 5,880 6,900 8,112
-------------------------------------------------------------------------------------------------
Joint** 4,716 5,028 5,544 5,928
Male-60
Female-60
-------------------------------------------------------------------------------------------------
</TABLE>

* Life annuity with 10 years guaranteed
** Joint and survivor life annuity with 20 years guaranteed

17
<PAGE> 22

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----------------------------------------------------------------
TAXES
----------------------------------------------------------------
----------------------------------------------------------------

Note: We prepared the following information on taxes as a general discussion of
the subject. It is not tax advice. We caution you to seek competent tax advice
about your own circumstances. We do not guarantee the tax status of your
annuity. Tax laws constantly change, therefore we cannot guarantee that the
information contained herein is complete and/or accurate.

ANNUITY CONTRACTS IN GENERAL

The Internal Revenue Code ("IRC") provides for special rules regarding the tax
treatment of annuity contracts. Generally, taxes on the earnings in your annuity
contract are deferred until you take the money out. Qualified retirement
investments automatically provide tax deferral regardless of whether the
underlying contract is an annuity. Different rules apply depending on how you
take the money out and whether your contract is Qualified or Non-qualified.

If you do not purchase your contract under a pension plan, a specially sponsored
employer program or an individual retirement account, your contract is referred
to as a Non-qualified contract. A Non-qualified contract receives different tax
treatment than a Qualified contract. In general, your cost basis in a
Non-qualified contract is equal to the Purchase Payments you put into the
contract. You have already been taxed on the cost basis in your contract.

If you purchase your contract under a pension plan, a specially sponsored
employer program or as an individual retirement account, your contract is
referred to as a Qualified contract. Examples of Qualified plans are: Individual
Retirement Accounts ("IRAs"), Roth IRAs, Tax-Sheltered Annuities (referred to as
403(b) contracts), H.R. 10 Plans (referred to as Keogh Plans) and pension and
profit sharing plans, including 401(k) plans. Typically you have not paid any
tax on the Purchase Payments used to buy your contract and therefore, you have
no cost basis in your contract.

TAX TREATMENT OF DISTRIBUTIONS -
NON-QUALIFIED CONTRACTS

If you make a withdrawal from a Non-qualified contract, the IRC treats such a
withdrawal as first coming from the earnings and then as coming from your
Purchase Payments. For income payments, any portion of each payment that is
considered a return of your Purchase Payment will not be taxed. Withdrawn
earnings are treated as income to you and are taxable. The IRC provides for a
10% penalty tax on any earnings that are withdrawn other than in conjunction
with the following circumstances: (1) after reaching age 59 1/2; (2) when paid
to your Beneficiary after you die; (3) after you become disabled (as defined in
the IRC); (4) when paid in a series of substantially equal installments made for
your life or for the joint lives of you and you Beneficiary; (5) under an
immediate annuity; or (6) which come from Purchase Payments made prior to August
14, 1982.

TAX TREATMENT OF DISTRIBUTIONS - QUALIFIED CONTRACTS

Generally, you have not paid any taxes on the Purchase Payments used to buy a
Qualified contract. Any amount of money you take out as a withdrawal or as
income payments is taxable income. The IRC further provides for a 10% penalty
tax on any withdrawal or income payment paid to you other than in conjunction
with the following circumstances: (1) after reaching age 59 1/2; (2) when paid
to your Beneficiary after you die; (3) after you become disabled (as defined in
the IRC); (4) in a series of substantially equal installments made for your life
or for the joint lives of you and your Beneficiary; (5) to the extent such
withdrawals do not exceed limitations set by the IRC for amounts paid during the
taxable year for medical care; (6) to fund higher education expenses (as defined
in IRC); (7) to fund certain first-time home purchase expenses; and, except in
the case of an IRA, (8) when you separate from service after attaining age 55;
and (9) when paid to an alternate payee pursuant to a qualified domestic
relations order.

The IRC limits the withdrawal of Purchase Payments from certain Tax-Sheltered
Annuities. Withdrawals can only be made when an owner: (1) reaches age 59 1/2;
(2) leaves his or her job; (3) dies; (4) becomes disabled (as defined in the
IRC); or (5) experiences a hardship (as defined in the IRC). In the case of
hardship, the owner can only withdraw Purchase Payments.

MINIMUM DISTRIBUTIONS

Generally, the IRS requires that you begin taking annual distributions from
Qualified annuity contracts by April 1 of the calendar year following the later
of (1) the calendar year in which you attain age 70 1/2 or (2) the calendar year
in which you retire. We currently waive withdrawal charges and MVA on
withdrawals taken to meet minimum distribution requirements. Current operational
practice is to provide a free withdrawal of the required minimum distribution
amount for a particular contract.

Failure to satisfy the minimum distribution requirement may result in a tax
penalty. You should consult your tax advisor for more information.

DIVERSIFICATION

The IRC imposes certain diversification requirements on the underlying
investments for a variable annuity. We believe that each underlying Variable
Portfolios' management monitors the Variable Portfolios so as to comply with
these requirements. To be treated as a variable annuity for tax purposes, the
underlying investments must meet these requirements.

18
<PAGE> 23

The diversification regulations do not provide guidance as to the circumstances
under which you, because of the degree of control you exercise over the
underlying investments, and not Anchor National, would be considered the owner
of the shares of the Variable Portfolios. It is unknown to what extent owners
are permitted to select investments, to make transfers among Variable Portfolios
or the number and type of Variable Portfolios owners may select from. If any
guidance is provided which is considered a new position, then the guidance would
generally be applied prospectively. However, if such guidance is considered not
to be a new position, it may be applied retroactively. This would mean you, as
the owner of the contract, could be treated as the owner of the underlying
Variable Portfolios. Due to the uncertainty in this area, we reserve the right
to modify the contract in an attempt to maintain favorable tax treatment.

----------------------------------------------------------------
----------------------------------------------------------------
PERFORMANCE
----------------------------------------------------------------
----------------------------------------------------------------

We advertise the Cash Management Portfolio's yield and effective yield. In
addition, the other Variable Portfolios advertise total return, gross yield and
yield-to-maturity. These figures represent past performance of the Variable
Portfolios. These performance numbers do not indicate future results.

When we advertise performance for periods prior to the date the particular
variable portfolio was incepted through the separate account, we derive the
figures from the performance of the corresponding portfolios for the Trusts, if
available. We modify these numbers to reflect charges and expenses as if the
contract was in existence during the period stated in the advertisement. Figures
calculated in this manner do not represent actual historic performance of the
particular Variable Portfolio.

Consult the SAI for more detailed information regarding the calculation of
performance data. The performance of each Variable Portfolio may also be
measured against unmanaged market indices. The indices we use include but are
not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, the
Russell 1000 Growth Index, the Morgan Stanley Capital International Europe,
Australia and Far East Index ("EAFE") and the Morgan Stanley Capital
International World Index. We may compare the Variable Portfolios' performance
to that of other variable annuities with similar objectives and policies as
reported by independent ranking agencies such as Morningstar, Inc., Lipper
Analytical Services, Inc. or Variable Annuity Research & Data Service ("VARDS").

Anchor National may also advertise the rating and other information assigned to
it by independent industry ratings organizations. Some of those organizations
are A.M. Best Company ("A.M. Best"), Moody's Investor's Service ("Moody's"),
Standard & Poor's Insurance Rating Services ("S&P"), and Duff & Phelps. A.M.
Best's and Moody's ratings reflect their current opinion of our financial
strength and performance in comparison to others in the life and health
insurance industry. S&P's and Duff & Phelps' ratings measure the ability of an
insurance company to meet its obligations under insurance policies it issues.
These two ratings do not measure the insurer's ability to meet non-policy
obligations. Ratings in general do not relate to the performance of the Variable
Portfolios.

----------------------------------------------------------------
----------------------------------------------------------------
OTHER INFORMATION
----------------------------------------------------------------
----------------------------------------------------------------

ANCHOR NATIONAL

Anchor National is a stock life insurance company originally organized under the
laws of the state of California in April 1965. On January 1, 1996, Anchor
National redomesticated under the laws of the state of Arizona.

Anchor National and its affiliates, SunAmerica Life Insurance Company, First
SunAmerica Life Insurance Company, CalAmerica Life Insurance Company, SunAmerica
National Life Insurance Company, SunAmerica Asset Management Corp., Resources
Trust Company, and the SunAmerica Financial Network, Inc. broker-dealers,
specialize in retirement savings and investment products and services. Business
focuses include fixed and variable annuities, mutual funds, broker-dealer
services and trust administration services.

THE SEPARATE ACCOUNT

Anchor National originally established a separate account, Variable Annuity
Account Seven ("separate account"), under Arizona law on August 28, 1998. The
separate account is registered with the SEC as a unit investment trust under the
Investment Company Act of 1940, as amended.

Anchor National owns the assets in the separate account. However, the assets in
the separate account are not chargeable with liabilities arising out of any
other business conducted by Anchor National. Income gains and losses (realized
and unrealized) resulting from assets in the separate account are credited to or
charged against the separate account without regard to other income gains or
losses of Anchor National.

THE GENERAL ACCOUNT

Money allocated to the fixed account options goes into Anchor National's general
account. The general account consists of all of Anchor National's assets other
than assets attributable to a separate account. All of the assets in the general
account are chargeable with the claims of any Anchor National contract holders
as well as all of its creditors. The general account funds are invested as
permitted under state insurance laws.

DISTRIBUTION OF THE CONTRACT

Registered representatives of broker-dealers sell the contract. We pay
commissions to these representatives for the sale of

19
<PAGE> 24

the contracts. We do not expect the total commissions to exceed 5.00% of your
Gross Purchase Payments. We may also pay a bonus to representatives for
contracts which stay active for a particular period of time, in addition to
standard commissions. The sales charges on your contract cover the cost of
commissions we pay to the representative.

From time to time, we may pay or allow additional promotional incentives in the
form of cash or other compensation. We reserve the right to offer these
additional incentives only to certain broker-dealers that sell, or are expected
to sell, the contract or other contracts offered by us. Promotional incentives
may change at any time.

SunAmerica Capital Services, Inc., 733 Third Avenue, 4th Floor, New York, New
York 10017 distributes the contracts. SunAmerica Capital Services, an affiliate
of Anchor National, is registered as a broker-dealer under the Exchange Act of
1934 and is a member of the National Association of Securities Dealers, Inc. No
underwriting fees are paid in connection with the distribution of the contracts.

ADMINISTRATION

We are responsible for the administrative servicing of your contract. Please
contact our Annuity Service Center
at 1-800-445-SUN2, if you have any comment, question or service request.

During the accumulation phase, you will receive confirmation of transactions
within your contract. Transactions made pursuant to contractual or systematic
agreements, such as deduction of the annual maintenance fee and dollar cost
averaging, may be confirmed quarterly. Purchase payments received through the
automatic payment plan or a salary reduction arrangement, may also be confirmed
quarterly. For all other transactions, we send confirmations immediately.

During the accumulation and income phases, you will receive a statement of your
transactions over the past quarter and a summary of your account values.

It is your responsibility to review these documents carefully and notify us of
any inaccuracies immediately. We investigate all inquiries. To the extent that
we believe we made an error, we retroactively adjust your contract, provided you
notify us within 30 days of receiving the transaction confirmation or quarterly
statement. Any other adjustments we deem warranted are made as of the time we
receive notice of the error.

LEGAL PROCEEDINGS

There are no pending legal proceedings affecting the separate account. Anchor
National and its subsidiaries engage in various kinds of routine litigation. In
management's opinion, these matters are not of material importance to their
respective total assets nor are they material with respect to the separate
account.

OWNERSHIP

The Polaris(II) A-Class Variable Annuity is a Flexible Payment Group Deferred
Annuity contract. We issue a group contract to a contract holder for the benefit
of the participants in the group. As a participant in the group, you will
receive a certificate which evidences your ownership. As used in this
prospectus, the term contract refers to your certificate. In some states, a
Flexible Payment Individual Modified Guaranteed and Variable Deferred Annuity
contract is available instead. Such a contract is identical to the contract
described in this prospectus, with the exception that we issue it directly to
the owner.

CUSTODIAN

State Street Bank and Trust Company, 255 Franklin Street, Boston, Massachusetts
02110, serves as the custodian of the assets of the separate account. Anchor
National pays State Street Bank for services provided, based on a schedule of
fees.

INDEPENDENT ACCOUNTANTS

The audited consolidated financial statements of the Company as of December 31,
1999, December 31, 1998 and September 30, 1998 and for the year ended December
31, 1999, for the three months ended December 31, 1998 and for each of the two
fiscal years in the period ended September 30, 1998; and the audited financial
statements of Variable Annuity Account Seven (Portion Relating to the
Polaris(II) A-Class Variable Annuity) for the period from inception to April 30,
2000 are incorporated by reference in this prospectus have been so included in
reliance on the report of PricewaterhouseCoopers LLP, independent accountants,
given on the authority of said firm as experts in auditing and accounting.

REGISTRATION STATEMENT

A registration statement has been filed with the SEC under the Securities Act of
1933 relating to the contract. This prospectus does not contain all the
information in the registration statement as permitted by SEC regulations. The
omitted information can be obtained from the SEC's principal office in
Washington, D.C., upon payment of a prescribed fee.

20
<PAGE> 25

----------------------------------------------------------------
----------------------------------------------------------------

TABLE OF CONTENTS OF
STATEMENT OF ADDITIONAL INFORMATION
----------------------------------------------------------------
----------------------------------------------------------------

<TABLE>
<S> <C>
Separate Account.............................. 3
General Account............................... 3
Performance Data.............................. 4
Income Payments............................... 8
Annuity Unit Values........................... 9
Taxes......................................... 12
Distribution of Contracts..................... 16
Financial Statements.......................... 16
</TABLE>

21
<PAGE> 26

<TABLE>
<CAPTION>
ACCUMULATION OF UNIT VALUE AND ACCUMULATION UNITS
INCEPTION TO
POLARIS II A-CLASS PORTFOLIOS 4/30/00
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
<S> <C>
Capital Appreciation (Inception Date - 10/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 14.03
Ending Number of AUs...................................... 226,697
---------------------------------------------------------------------------------
Growth (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.95
Ending Number of AUs...................................... 93,965
---------------------------------------------------------------------------------
Government and Quality Bond (Inception Date - 12/16/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.13
Ending Number of AUs...................................... 10,743
---------------------------------------------------------------------------------
Technology
Beginning AUV............................................. N/A
Ending AUV................................................ N/A
Ending Number of AUs...................................... N/A
---------------------------------------------------------------------------------
Emerging Markets (Inception Date - 11/10/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.53
Ending Number of AUs...................................... 16,356
---------------------------------------------------------------------------------
International Diversified Equities (Inception Date -
11/23/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 9.87
Ending Number of AUs...................................... 30,627
---------------------------------------------------------------------------------
Global Equities (Inception Date - 11/8/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.70
Ending Number of AUs...................................... 81,597
---------------------------------------------------------------------------------
International Growth and Income (Inception Date - 10/25/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.82
Ending Number of AUs...................................... 132,522
---------------------------------------------------------------------------------
Growth Opportunities
Beginning AUV............................................. N/A
Ending AUV................................................ N/A
Ending Number of AUs...................................... N/A
---------------------------------------------------------------------------------
Aggressive Growth (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 14.14
Ending Number of AUs...................................... 49,324
---------------------------------------------------------------------------------
MFS Mid-Cap Growth (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 13.69
Ending Number of AUs...................................... 30,505
---------------------------------------------------------------------------------
Real Estate (Inception Date - 2/7/00)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.77
Ending Number of AUs...................................... 2,461
---------------------------------------------------------------------------------
Blue Chip Growth
Beginning AUV............................................. N/A
Ending AUV................................................ N/A
Ending Number of AUs...................................... N/A
---------------------------------------------------------------------------------
Putnam Growth (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.33
Ending Number of AUs...................................... 177,965
---------------------------------------------------------------------------------
Goldman Sachs Research
Beginning AUV............................................. N/A
Ending AUV................................................ N/A
Ending Number of AUs...................................... N/A
---------------------------------------------------------------------------------
</TABLE>

A-1
<PAGE> 27

<TABLE>
<CAPTION>
ACCUMULATION OF UNIT VALUE AND ACCUMULATION UNITS
INCEPTION TO
POLARIS II A-CLASS PORTFOLIOS 4/30/00
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
<S> <C>
MFS Growth & Income (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.49
Ending Number of AUs...................................... 114,191
---------------------------------------------------------------------------------
Alliance Growth (Inception Date - 10/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.75
Ending Number of AUs...................................... 423,804
---------------------------------------------------------------------------------
"Dogs" of Wall Street (Inception Date - 1/3/00)
Beginning AUV............................................. 10.00
Ending AUV................................................ 9.51
Ending Number of AUs...................................... 3,381
---------------------------------------------------------------------------------
Davis Venture Value (Inception Date - 10/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.61
Ending Number of AUs...................................... 353,493
---------------------------------------------------------------------------------
Federated Value (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.03
Ending Number of AUs...................................... 49,962
---------------------------------------------------------------------------------
Growth-Income (Inception Date - 11/1/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.39
Ending Number of AUs...................................... 335,543
---------------------------------------------------------------------------------
Telecom Utility (Inception Date - 12/16/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 9.91
Ending Number of AUs...................................... 9,175
---------------------------------------------------------------------------------
Asset Allocation (Inception Date - 11/12/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.34
Ending Number of AUs...................................... 14,781
---------------------------------------------------------------------------------
MFS Total Return (Inception Date - 10/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.22
Ending Number of AUs...................................... 50,264
---------------------------------------------------------------------------------
SunAmerica Balanced (Inception Date - 10/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 11.01
Ending Number of AUs...................................... 93,619
---------------------------------------------------------------------------------
Worldwide High Income (Inception Date - 11/10/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.42
Ending Number of AUs...................................... 3,802
---------------------------------------------------------------------------------
High-Yield Bond (Inception Date - 11/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.06
Ending Number of AUs...................................... 13,058
---------------------------------------------------------------------------------
Corporate Bond (Inception Date - 12/27/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.01
Ending Number of AUs...................................... 3,500
---------------------------------------------------------------------------------
Global Bond (Inception Date - 11/28/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.20
Ending Number of AUs...................................... 1,149
---------------------------------------------------------------------------------
Cash Management (Inception Date - 11/29/99)
Beginning AUV............................................. 10.00
Ending AUV................................................ 10.20
Ending Number of AUs...................................... 3,737
</TABLE>

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

AUV - Accumulation Unit Value
AU - Accumulation Units

A-2
<PAGE> 28

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX B - MARKET VALUE ADJUSTMENT ("MVA")
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
The MVA reflects the impact that changing interest rates have on the value of
money invested at a fixed interest rate. The longer the period of time remaining
in the term you initially agreed to leave your money in the fixed account
option, the greater the impact of changing interest rates. The impact of the MVA
can be either positive or negative, and is computed by multiplying the amount
withdrawn, transferred or switched to the Income Phase by the following factor:

(N/12)
[(1+I)/(1+J+L)] - 1

The MVA formula may differ in certain states
where:
I is the interest rate you are earning on the money invested in the
fixed account option;

J is the interest rate then currently available for the period of time
equal to the number of years (rounded up to an integer) remaining in the
term you initially agreed to leave your money in the fixed account
option; and

N is the number of full months remaining in the term you initially
agreed to leave your money in the fixed account option.
L=0.005, except in PA where L=0 and FL where L=0.0025.

EXAMPLES OF THE MVA

The examples below assume the following:

(1) You made an initial Purchase Payment of $10,000 (net of the sales
charge) and allocated it to the 10-year fixed account option at a rate
of 5%;
(2) You make a partial withdrawal of $4,000 when 1 1/2 years (18 months)
remain in the 10-year term you initially agreed to leave your money in
the fixed account option (N=18); and
(3) You have not made any other transfers, additional Purchase Payments, or
withdrawals.

We assume no withdrawal charge applies. If a withdrawal charge applies, it is
deducted before the MVA. The MVA is assessed on the amount withdrawn less any
withdrawal charges.

POSITIVE ADJUSTMENT
Assume that on the date of withdrawal, the interest rate in effect for a new
Purchase Payments in the 1-year fixed account option is 3.5% and the 3-year
fixed account option is 4.5%. By linear interpolation, the interest rate for the
remaining 2 years (1 1/2 years rounded up to the next full year) in the contract
is calculated to be 4%.
(N/12)
The MVA factor is = [(1+I)/(1+J+L)] - 1 where L=0.005
(18/12)
= [(1.05)/(1.04+0.005)] - 1
(1.5)
= (1.004785) - 1
= 1.007186 - 1
= + 0.007186

The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:
$4,000 x (+0.007186) = +$28.74

$28.74 represents the MVA that would be added to your withdrawal.

NEGATIVE ADJUSTMENT

Assume that on the date of withdrawal, the interest rate in effect for new
Purchase Payments in the 1-year fixed account option is 5.5% and the 3-year
fixed account option is 6.5%. By linear interpolation, the interest rate for the
remaining 2 years (1 1/2 years rounded up to the next full year) in the contract
is calculated to be 6%.
(N/12)
The MVA factor is = [(1+I)/(1+J+L)] - 1 where L=0.005
(18/12)
= [(1.05)/(1.06+0.005)] - 1
(1.5)
= (0.985915) - 1
= 0.978948 - 1
= - 0.021052

The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:
$4,000 X (- 0.021052) = -$84.21

$84.21 represents the MVA that will be deducted from the money remaining in the
10-year fixed account option.

B-1
<PAGE> 29

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX C - PREMIUM TAXES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Premium taxes vary according to the state and are subject to change without
notice. In many states, there is no tax at all. Listed below are the current
premium tax rates in those states that assess a premium tax. For current
information, you should consult your tax adviser.

<TABLE>
<CAPTION>
QUALIFIED NON-QUALIFIED
STATE CONTRACT CONTRACT
<S> <C> <C>
========================================================================================
California .50% 2.35%
----------------------------------------------------------------------------------------
Maine 0% 2%
----------------------------------------------------------------------------------------
Nevada 0% 3.50%
----------------------------------------------------------------------------------------
South Dakota 0% 1.25%
----------------------------------------------------------------------------------------
West Virginia 1% 1%
----------------------------------------------------------------------------------------
Wyoming 0% 1%
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
</TABLE>

C-1
<PAGE> 30

--------------------------------------------------------------------------------

Please forward a copy (without charge) of the Polaris(II) A-Class Variable
Annuity Statement of Additional Information to:

(Please print or type and fill in all information.)

------------------------------------------------------------------------
Name

------------------------------------------------------------------------
Address

------------------------------------------------------------------------
City/State/Zip

Date: Signed:
------------- ---------------------------------------------

Return to: Anchor National Life Insurance Company, Annuity Service Center,
P.O. Box 52499, Los Angeles, California 90054-0299
--------------------------------------------------------------------------------