AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON FEBRUARY 29, 2000.
FILE NOS. 333-_____
811-09227
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 /X/
POST-EFFECTIVE AMENDMENT NO. _
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
AMENDMENT NO. 6 /X/
ALLSTATE LIFE INSURANCE COMPANY SEPARATE ACCOUNT A
(Exact Name of Registrant)
ALLSTATE LIFE INSURANCE COMPANY
(Name of Depositor)
ALLSTATE LIFE INSURANCE COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
1-800/390-1277
(Address and Telephone Number of Depositor's Principal Offices)
MICHAEL J. VELOTTA
SENIOR VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
ALLSTATE LIFE INSURANCE COMPANY
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847/402-2400
(Name, Complete Address and Telephone Number of Agent for Service)
COPIES TO:
RICHARD T. CHOI, ESQUIRE TERRY R. YOUNG, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS ALLSTATE DISTRIBUTORS, L.L.C.
1050 CONNECTICUT AVENUE, N.W. 3100 SANDERS ROAD, J5B
SUITE 825 NORTHBROOK, ILLINOIS 60062
WASHINGTON, D.C. 20036-5366
Approximate date of proposed public offering: As soon as practicable after the
effective date of the registration statement.
The registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant shall
file a further amendment which specifically states that this registration
statement shall thereafter become effective in accordance with Section 8(a) of
the Securities Act of 1933 or until the registration shall become effective on
such date as the Commission, acting pursuant to Section 8(a), may determine.
Title of Securities Being Registered: Units of interest in the Allstate Life
Insurance Company Separate Account A under flexible premium deferred variable
annuity contracts.
<PAGE>
THE PUTNAM ALLSTATE ADVISOR
ALLSTATE LIFE INSURANCE COMPANY PROSPECTUS DATED APRIL 28, 2000
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
TELEPHONE NUMBER: 1-800-390-1277
Allstate Life Insurance Company ("ALLSTATE") is offering the following
individual and group flexible premium deferred variable annuity contracts
(each, a "CONTRACT"):
o Putnam Allstate Advisor
o Putnam Allstate Advisor - A
o Putnam Allstate Advisor - L
o Putnam Allstate Advisor Plus
Each Contract has different features and charges. This prospectus contains
information about each Contract that you should know before investing. Please
keep it for future reference.
Each Contract currently offers several investment alternatives ("INVESTMENT
ALTERNATIVES"). The investment alternatives include up to 3 fixed account
options ("FIXED ACCOUNT OPTIONS"), depending on the Contract, and include 24
variable sub-accounts ("VARIABLE SUB-ACCOUNTS") of the Allstate Life Insurance
Company Separate Account A ("VARIABLE ACCOUNT"). Each Variable Sub-Account
invests exclusively in the class IB shares of one of the following mutual fund
portfolios ("FUNDS") of Putnam Variable Trust:
<TABLE>
<S> <C>
Putnam VT American Government Income Fund Putnam VT International Growth and Income Fund
Putnam VT Asia Pacific Growth Fund Putnam VT International New Opportunities Fund
Putnam VT Diversified Income Fund Putnam VT Investors Fund
Putnam VT The George Putnam Fund of Boston Putnam VT Money Market Fund
Putnam VT Global Asset Allocation Fund Putnam VT New Opportunities Fund
Putnam VT Global Growth Fund Putnam VT New Value Fund
Putnam VT Growth and Income Fund Putnam VT OTC & Emerging Growth Fund
Putnam VT Growth Opportunities Fund Putnam VT Research Fund
Putnam VT Health Sciences Fund Putnam VT Small Cap Value Fund
Putnam VT High Yield Fund Putnam VT Utilities Growth and Income Fund
Putnam VT Income Fund Putnam VT Vista Fund
Putnam VT International Growth Fund Putnam VT Voyager Fund
</TABLE>
For Putnam Allstate Advisor Plus Contracts, each time you make a purchase
payment, we will add to your Contract value ("Contract Value") a credit
enhancement ("Credit Enhancement") equal to 4% of such purchase payment. Over
time, the amount of the Credit Enhancement may be more than offset by the fees
associated with the Credit Enhancement.
WE (Allstate) have filed a Statement of Additional Information, dated April
28, 2000, with the Securities and Exchange Commission ("SEC"). It contains
more information about each Contract and is incorporated herein by reference,
which means that it is legally a part of this prospectus. Its table of
contents appears on page __ of this prospectus. For a free copy, please write
or call us at the address or telephone number above, or go to the SEC's Web
site (http://www.sec.gov). You can find other information and documents about
us, including documents that are legally part of this prospectus, at the SEC's
Web site.
1
<PAGE>
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED THE SECURITIES DESCRIBED IN THIS PROSPECTUS, NOR
HAS IT PASSED ON THE ACCURACY OR THE ADEQUACY OF THIS
PROSPECTUS. ANY ONE WHO TELLS YOU OTHERWISE IS COMMITTING A
FEDERAL CRIME.
IMPORTANT THE CONTRACTS MAY BE DISTRIBUTED THROUGH BROKER-DEALERS THAT
NOTICES HAVE RELATIONSHIPS WITH BANKS OR OTHER FINANCIAL
INSTITUTIONS OR BY EMPLOYEES OF SUCH BANKS. HOWEVER, THE
CONTRACTS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED
BY SUCH INSTITUTIONS OR ANY FEDERAL REGULATORY AGENCY.
INVESTMENT IN THE CONTRACTS INVOLVES INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL.
THE CONTRACTS ARE NOT FDIC INSURED.
2
<PAGE>
TABLE OF CONTENTS
-----------------------------------------------------------------------------
PAGE
IMPORTANT TERMS.........................................
THE CONTRACTS AT A GLANCE ..............................
OVERVIEW HOW THE CONTRACTS WORK..................................
EXPENSE TABLE...........................................
FINANCIAL INFORMATION...................................
THE CONTRACTS...........................................
PURCHASES...............................................
CONTRACT VALUE..........................................
CONTRACT INVESTMENT ALTERNATIVES.................................
FEATURES The Variable Sub-Accounts.............................
The Fixed Account.....................................
Transfers.............................................
EXPENSES................................................
ACCESS TO YOUR MONEY....................................
INCOME PAYMENTS.........................................
DEATH BENEFITS..........................................
MORE INFORMATION........................................
OTHER TAXES...................................................
INFORMATION PERFORMANCE INFORMATION.................................
STATEMENT OF ADDITIONAL INFORMATION TABLE OF CONTENTS..
APPENDIX A..............................................
APPENDIX B..............................................
APPENDIX C..............................................
3
<PAGE>
IMPORTANT TERMS
-----------------------------------------------------------------------------
This prospectus uses a number of important terms that you may not be familiar
with. The index below identifies the page that describes each term. The first
use of each term in this prospectus appears in highlights.
PAGE
ACCUMULATION PHASE......................................................
ACCUMULATION UNIT ......................................................
ACCUMULATION UNIT VALUE ................................................
ALLSTATE ("WE").........................................................
ANNUITANT...............................................................
AUTOMATIC ADDITIONS PROGRAM.............................................
AUTOMATIC FUND REBALANCING PROGRAM......................................
BENEFICIARY ............................................................
CANCELLATION PERIOD ....................................................
*CONTRACT ..............................................................
CONTRACT ANNIVERSARY....................................................
CONTRACT OWNER ("YOU") .................................................
CONTRACT VALUE .........................................................
CONTRACT YEAR ..........................................................
CREDIT ENHANCEMENT......................................................
DOLLAR COST AVERAGING PROGRAM...........................................
DUE PROOF OF DEATH......................................................
ENHANCED BENEFICIARY PROTECTION OPTION..................................
FIXED ACCOUNT OPTIONS...................................................
FREE WITHDRAWAL AMOUNT .................................................
FUNDS...................................................................
GUARANTEE PERIOD ......................................................
INCOME BASE.............................................................
INCOME PLAN ............................................................
INVESTMENT ALTERNATIVES ................................................
ISSUE DATE .............................................................
MAXIMUM ANNIVERSARY VALUE...............................................
NET PURCHASE PAYMENTS...................................................
PAYOUT PHASE............................................................
PAYOUT START DATE ......................................................
RETIREMENT INCOME GUARANTEE RIDER.......................................
RIGHT TO CANCEL ........................................................
SEC.....................................................................
SETTLEMENT VALUE ......................................................
STANDARD FIXED ACCOUNT OPTION...........................................
SYSTEMATIC WITHDRAWAL PROGRAM ..........................................
VALUATION DATE..........................................................
VARIABLE ACCOUNT .......................................................
VARIABLE SUB-ACCOUNT ...................................................
* In certain states a Contract may be available only as a group
Contract. If you purchase a group Contract, we will issue you a
certificate that represents your ownership and that summarizes the
provisions of the group Contract. References to "Contract" in this
prospectus include certificates, unless the context requires otherwise.
References to "Contract" also include all four Contracts listed on the
cover page of this prospectus, unless otherwise noted. However, we
administer each Contract separately.
4
<PAGE>
THE CONTRACTS AT A GLANCE
-----------------------------------------------------------------------------
The following is a snapshot of each Contract. Please read the remainder of
this prospectus for more information.
=============================================================================
FLEXIBLE PAYMENTS You can purchase each Contract with as little as
$1,000 ($500 for QUALIFIED CONTRACTS, which are
Contracts issued with a qualified plan, and $10,000
for Putnam Allstate Advisor - L and Putnam Allstate
Advisor Plus Contracts). You can add to your Contract
as often and as much as you like, but each subsequent
payment must be at least $500 ($50 for automatic
payments). We may limit the amount of any additional
purchase payment to a maximum of $1,000,000. You must
maintain a minimum account size of $1,000.
For Putnam Allstate Advisor Plus Contracts, each time
you make a purchase payment, we will add to your
Contract Value a Credit Enhancement equal to 4% of
such purchase payment.
-----------------------------------------------------------------------------
RIGHT TO CANCEL You may cancel your Contract within 20 days of receipt
or any longer period as your state may require
("CANCELLATION PERIOD"). Upon cancellation, we will
return your purchase payments adjusted, to the extent
federal or state law permits, to reflect the
investment experience of any amounts allocated to the
Variable Account. If you exercise your RIGHT TO CANCEL
the Contract, the amount we refund to you will not
include any Credit Enhancement. See "Right to Cancel"
for details.
-----------------------------------------------------------------------------
EXPENSES You will bear the following expenses:
o Mortality and expense risk charge equal to a
percentage of average daily net assets. The
percentage, on an annual basis, is 0.80% for the
Putnam Allstate Advisor - A Contracts, 1.25% for
the Putnam Allstate Advisor Contracts, 1.65% for
the Putnam Allstate Advisor - L and 1.60% for
the Putnam Allstate Advisor Plus Contracts. An
additional 0.15% applies if you select the
ENHANCED BENEFICIARY PROTECTION OPTION.
o If you select a Retirement Income Guarantee
Rider you would pay an additional fee at the
annual rate of 0.05% or 0.30% (depending on the
option you select) of the INCOME BASE in effect
on a Contract anniversary ("CONTRACT
ANNIVERSARY")
o Annual contract maintenance charge of $30
(Putnam Allstate Advisor Contracts only; waived
in certain cases)
o Front end sales charge ranging from 5.75% to
0.50% of the amount of purchase payments (Putnam
Allstate Advisor - A Contracts only)
o Withdrawal charges ranging from 0% to 8% of
purchase payments withdrawn (with certain
exceptions; lower percentages apply to Putnam
Allstate Advisor, - A, and - L Contracts)
o Transfer fee equal to 0.50% of the amount
transferred after 12th transfer in any year
o State premium tax (if your state imposes one)
In addition, each Fund pays expenses that you will
bear indirectly if you invest in a Variable
Sub-Account.
=============================================================================
5
<PAGE>
=============================================================================
INVESTMENT Each Contract offers several investment alternatives
ALTERNATIVES including:
o 3 Fixed Account Options that credit interest at
rates we guarantee (only the Standard Fixed
Account Option is available under the Putnam
Allstate Advisor Plus and L Contracts)
o 24 Variable Sub-Accounts investing in Funds
offering professional money management by Putnam
Investment Management, Inc.
To find out current rates being paid on the Fixed
Account Options, or to find out how the Variable
Sub-Accounts have performed, please call us at
1-800/390-1277.
-----------------------------------------------------------------------------
SPECIAL SERVICES For your convenience, we offer these special services:
o Automatic Fund Rebalancing Program
o Automatic Additions Program
o Dollar Cost Averaging Program
o Systematic Withdrawal Program
-----------------------------------------------------------------------------
INCOME PAYMENTS You can choose fixed income payments, variable income
payments, or a combination of the two. You can receive
your income payments in one of the following ways:
o life income with guaranteed payments
o a joint and survivor life income with guaranteed
payments
o guaranteed payments for a specified period (5 to
30 years)
Allstate also offers two Retirement Income Guarantee
Riders that allow you to lock in a dollar amount that
you can apply towards fixed income payments.
-----------------------------------------------------------------------------
DEATH BENEFITS If you die before income payments begin, we will pay
the death benefit described in the Contract. We also
offer an Enhanced Beneficiary Protection Option.
-----------------------------------------------------------------------------
TRANSFERS Before the Payout Start Date, you may transfer your
Contract value ("Contract Value") among the investment
alternatives, with certain restrictions. The minimum
amount you may transfer is $100 or the amount
remaining in the investment alternative, if less.
A charge may apply after the 12th transfer in each
Contract year ("CONTRACT YEAR"), which we measure from
the date we issue your Contract or a Contract
Anniversary.
-----------------------------------------------------------------------------
WITHDRAWALS You may withdraw some or all of your Contract Value at
anytime prior to the Payout Start Date. In general,
you must withdraw at least $50 at a time. A 10%
federal tax penalty may apply if you withdraw before
you are 59 1/2 years old. A withdrawal charge also may
apply.
=============================================================================
6
<PAGE>
HOW THE CONTRACTS WORK
-----------------------------------------------------------------------------
Each Contract basically works in two ways.
First, each Contract can help you (we assume you are the "CONTRACT
OWNER") save for retirement because you can invest in up to 27 investment
alternatives (25 in the case of Putnam Allstate Advisor Plus and Putnam
Advisor-L Contracts) and pay no federal income taxes on any earnings until you
withdraw them. You do this during what we call the "ACCUMULATION PHASE" of the
Contract. The Accumulation Phase begins on the date we issue your Contract (we
call that date the "ISSUE DATE") and continues until the Payout Start Date,
which is the date we apply your money to provide income payments. During the
Accumulation Phase, you may allocate your purchase payments to any combination
of the Variable Sub-Accounts and/or Fixed Account Options. If you invest in a
Fixed Account Option, you will earn a fixed rate of interest that we declare
periodically. If you invest in any of the Variable Sub-Accounts, your
investment return will vary up or down depending on the performance of the
corresponding Funds.
Second, each Contract can help you plan for retirement because you can
use it to receive retirement income for life and/or for a pre-set number of
years, by selecting one of the income payment options (we call these "INCOME
PLANS") described on page __. You receive income payments during what we call
the "PAYOUT PHASE" of the Contract, which begins on the Payout Start Date and
continues until we make the last payment required by the Income Plan you
select. During the Payout Phase, if you select a fixed income payment option,
we guarantee the amount of your payments, which will remain fixed. If you
select a variable income payment option, based on one or more of the Variable
Sub-Accounts, the amount of your payments will vary up or down depending on
the performance of the corresponding Funds. The amount of money you accumulate
under your Contract during the Accumulation Phase and apply to an Income Plan
will determine the amount of your income payments during the Payout Phase.
The timeline below illustrates how you might use your Contract.
[graphic]
As the Contract Owner, you exercise all of the rights and privileges
provided by the Contract. If you die, any surviving Contract Owner or, if
there is none, the BENEFICIARY will exercise the rights and privileges
provided by the Contract. SEE "The Contract." In addition, if you die before
the Payout Start Date, we will pay a death benefit to any surviving Contract
Owner or, if there is none, to your Beneficiary. SEE "Death Benefits."
Please call us at 1-800-390-1277 if you have any question about how the
Contracts work.
7
<PAGE>
EXPENSE TABLE
-----------------------------------------------------------------------------
The table below lists the expenses that you will bear directly or indirectly
when you buy a Contract. The table and the examples that follow do not reflect
premium taxes that may be imposed by the state where you reside. For more
information about Variable Account expenses, see "Expenses," below. For more
information about Fund expenses, please refer to the accompanying prospectus
for the Funds.
=============================================================================
CONTRACT OWNER TRANSACTION EXPENSES
-----------------------------------------------------------------------------
Sales Charge Imposed on Purchases (as a percentage of purchase payments --
Putnam Allstate Advisor - A Contracts Only)
<TABLE>
<CAPTION>
PURCHASE PAYMENT AMOUNT SALES CHARGE PERCENTAGE
<S> <C>
Less than $50,000 5.75%
At least $50,000 but less than $100,000 4.50%
At least $100,000 but less than $250,000 3.50%
At least $250,000 but less than $500,000 2.50%
At least $500,000 but less than $1,000,000 2.00%
At least $1,000,000 0.50%
</TABLE>
=============================================================================
Withdrawal Charge (as a percentage of purchase payments withdrawn)*
<TABLE>
<CAPTION>
CONTRACT: NUMBER OF COMPLETE YEARS SINCE WE RECEIVED PAYMENT BEING WITHDRAWN/
APPLICABLE CHARGE:
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Putnam Allstate Advisor - A 0 1+
0.5%** 0%
Putnam Allstate Advisor 0 1 2 3 4 5 6 7+
7% 7% 6% 5% 4% 3% 2% 0%
Putnam Allstate Advisor - L 0 1 2+
2% 1% 0%
Putnam Allstate Advisor Plus 0 1 2 3 4 5 6 7 8+
8% 8% 8% 7% 6% 5% 4% 3% 0%
</TABLE>
=============================================================================
Annual Contract Maintenance Charge (Putnam Allstate Advisor Contracts
only)...........$30***
=============================================================================
8
<PAGE>
=============================================================================
Transfer Fee (all Contracts)...............................0.50% of the amount
transferred****
=============================================================================
* Each Contract Year, you may withdraw up to the FREE WITHDRAWAL AMOUNT
offered under your Contract without incurring a withdrawal charge (none
offered under Putnam Allstate Advisor - A or Putnam Allstate Advisor - L
Contracts). SEE "Withdrawal Charges," for more information.
** Currently assessed on Contracts that have total purchase payments of at
least $1,000,000.
*** Waived in certain cases. SEE "Expenses."
**** Applies solely to the 13th and subsequent transfers within a Contract
Year, excluding transfers due to dollar cost averaging and automatic fund
rebalancing.
=============================================================================
VARIABLE ACCOUNT ANNUAL EXPENSES
(as a percentage of average daily net asset value deducted from each Variable
Sub-Account)
=============================================================================
<TABLE>
<CAPTION>
Mortality and Total Variable
Expense Administrative Account Annual
Contract Risk Charge* Charge Expenses
-------- ------------- -------------- --------------
<S> <C> <C> <C>
Putnam Allstate Advisor - A 0.80% 0.00% 0.80%
Putnam Allstate Advisor 1.25% 0.00% 1.25%
Putnam Allstate Advisor - L 1.65% 0.00% 1.65%
Putnam Allstate Advisor Plus 1.60% 0.00% 1.60%
</TABLE>
=============================================================================
* If you select the Enhanced Beneficiary Protection Option, the mortality and
expense risk charge will be an additional .15%.
=============================================================================
Retirement Income Guarantee Rider Expenses
If you select a Retirement Income Guarantee Rider, you would pay an additional
fee at the annual rate of 0.05% or 0.30% (depending on the Option you select)
of the Income Base in effect on a Contract Anniversary. See "Retirement Income
Guarantee Riders" for details.
=============================================================================
9
<PAGE>
=============================================================================
FUND ANNUAL EXPENSES (AFTER VOLUNTARY REDUCTIONS AND REIMBURSEMENTS) (AS A
PERCENTAGE OF FUND AVERAGE DAILY NET ASSETS)(1)
=============================================================================
<TABLE>
<CAPTION>
Total Annual
Management Rule 12b-1 Other Fund
Fund Fees Fees Expenses Expenses
-------------------------------------------------------------------------------------------------------------------------
<S> <C>
Putnam VT American Government Income Fund (2) 0.15%
Putnam VT Asia Pacific Growth Fund 0.15%
Putnam VT Diversified Income Fund 0.15%
Putnam VT The George Putnam Fund of Boston (2) 0.15%
Putnam VT Global Asset Allocation Fund 0.15%
Putnam VT Global Growth Fund 0.15%
Putnam VT Growth and Income Fund 0.15%
Putnam VT Growth Opportunities Fund 0.15%
Putnam VT Health Sciences Fund (2) 0.15%
Putnam VT High Yield Fund 0.15%
Putnam VT Income Fund 0.15%
Putnam VT International Growth Fund 0.15%
Putnam VT International Growth and Income Fund 0.15%
Putnam VT International New Opportunities Fund (2) 0.15%
Putnam VT Investors Fund (2) 0.15%
Putnam VT Money Market Fund 0.15%
Putnam VT New Opportunities Fund 0.15%
Putnam VT New Value Fund 0.15%
Putnam VT OTC & Emerging Growth Fund (2) 0.15%
Putnam VT Research Fund (2) 0.15%
Putnam VT Small Cap Value Fund 0.15%
Putnam VT Utilities Growth and Income Fund 0.15%
Putnam VT Vista Fund 0.15%
Putnam VT Voyager Fund 0.15%
</TABLE>
=============================================================================
(1) Figures shown in the table are for the period ended December 31, 1999,
except that the figures for the Putnam VT American Government Income
Fund and Putnam VT Growth Opportunities Fund, which commenced operations
on January 31, 2000, are based on estimates for the Fund's first full
fiscal year. Figures shown in the table include amounts paid through
expense offset and brokerage service arrangements. See the Fund's
prospectus for more information about 12b-1 fees payable under the
Fund's distribution plan.
(2) Absent voluntary reductions and reimbursements for certain Funds,
management fees, Rule 12b-1 fees, other expenses, and total annual fund
expenses expressed as a percentage of average net assets of the Funds
would have been as follows:
=============================================================================
<TABLE>
<S> <C>
Putnam VT American Government Income Fund 0.15%
Putnam VT The George Putnam Fund of Boston 0.15%
Putnam VT Health Sciences Fund 0.15%
Putnam VT International New Opportunities Fund 0.15%
Putnam VT Investors Fund 0.15%
Putnam VT OTC & Emerging Growth Fund 0.15%
Putnam VT Research Fund 0.15%
</TABLE>
=============================================================================
10
<PAGE>
EXAMPLE 1
The example below shows the dollar amount of expenses that you would bear
directly or indirectly if you:
o invested a $1,000 in a Variable Sub-Account,
o earned a 5% annual return on your investment,
o surrendered your Contract, or began receiving income payments for
a specified period of less than 120 months, at the end of each
time period (no withdrawal charge is included in the calculations
for the Putnam Allstate Advisor - A Contracts because no
withdrawal charge applies after one year);
o elect the Enhanced Beneficiary Protection Option; and
o elect Retirement Income Guarantee Rider 2 (assuming Income Base
B).
THE EXAMPLE DOES NOT INCLUDE ANY TAXES OR TAX PENALTIES YOU MAY BE REQUIRED TO
PAY IF YOU SURRENDER YOUR CONTRACT.
<TABLE>
<CAPTION>
Putnam Allstate Putnam Allstate Putnam Allstate Putnam Allstate
Advisor - A Advisor Advisor - L Advisor Plus
Sub-account 1 Year 3 Year 1 Year 3 Year 1 Year 3 Year 1 Year 3 Year
----------- ------ ------ ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Putnam American Government
Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth
and Income
Putnam International New
Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging
Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and
Income
Putnam Vista
Putnam Voyager
</TABLE>
11
<PAGE>
EXAMPLE 2
Same assumptions as Example 1 above, except that you decide not to surrender
your Contract, or you began receiving income payments for at least 120 months
if under an Income Plan for a specified period, at the end of each period.
<TABLE>
<CAPTION>
Putnam Allstate Putnam Allstate Putnam Allstate
Advisor Advisor - L Advisor Plus
SUB-ACCOUNT 1 Year 3 Year 1 Year 3 Year 1 Year 3 Year
----------- ------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Putnam American Government
Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth
and Income
Putnam International New
Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging
Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and
Income
Putnam Vista
Putnam Voyager
</TABLE>
PLEASE REMEMBER THAT YOU ARE LOOKING AT EXAMPLES AND NOT A REPRESENTATION OF
PAST OR FUTURE EXPENSES. YOUR ACTUAL EXPENSES MAY BE LOWER OR GREATER THAN
THOSE SHOWN ABOVE. SIMILARLY, YOUR RATE OF RETURN MAY BE LOWER OR GREATER THAN
5%, WHICH IS NOT GUARANTEED. THE ABOVE EXAMPLES ASSUME THE ELECTION OF THE
ENHANCED BENEFICIARY PROTECTION OPTION AND THE RETIREMENT INCOME GUARANTEE
RIDER 2 AND THAT INCOME BASE B IS APPLIED. IF ONE OR BOTH OF THESE FEATURES
WERE NOT ELECTED, THE EXPENSE FIGURES SHOWN ABOVE WOULD BE SLIGHTLY LOWER. TO
REFLECT THE CONTRACT MAINTENANCE CHARGE IN THE EXAMPLES (FOR PUTNAM ALLSTATE
ADVISOR CONTRACTS ONLY), WE ESTIMATED AN EQUIVALENT PERCENTAGE CHARGE, BASED
ON AN ASSUMED AVERAGE CONTRACT SIZE OF $45,000. THE FIGURES FOR THE PUTNAM
ALLSTATE ADVISOR - A CONTRACT ASSUME A 5.75% SALES CHARGE.
12
<PAGE>
FINANCIAL INFORMATION
-----------------------------------------------------------------------------
To measure the value of your investment in the Variable Sub-Accounts during
the Accumulation Phase, we use a unit of measure we call the "ACCUMULATION
UNIT." Each Variable Sub-Account has a separate value for its Accumulation
Units we call "ACCUMULATION UNIT VALUE." Accumulation Unit Value is analogous
to, but not the same as, the share price of a mutual fund.
Accumulation Unit Values for Putnam Allstate Advisor - A and Putnam Allstate
Advisor Contracts appear in Appendix C. No Accumulation Unit Values are shown
for the Putnam Allstate Advisor - L and Putnam Allstate Advisor Plus Contracts
which were first offered as of February 4, 2000 and April 28, 2000
respectively.
The financial statements of Allstate and the Variable Account appear in the
Statement of Additional Information.
13
<PAGE>
THE CONTRACT
-----------------------------------------------------------------------------
CONTRACT OWNER
A Putnam Allstate Advisor Contract is a contract between you, the Contract
Owner, and Allstate, a life insurance company. As the Contract Owner, you may
exercise all of the rights and privileges provided to you by the Contract.
That means it is up to you to select or change (to the extent permitted):
o the investment alternatives during the Accumulation and Payout
Phases,
o the amount and timing of your purchase payments and withdrawals,
o the programs you want to use to invest or withdraw money,
o the income payment plan you want to use to receive retirement
income,
o the Annuitant (either yourself or someone else) on whose life the
income payments will be based,
o the Beneficiary or Beneficiaries who will receive the benefits
that the Contract provides when the last surviving Contract Owner
or the Annuitant dies, and
o any other rights that the Contract provides.
If you die, any surviving joint Contract Owner or, if none, the Beneficiary
will exercise the rights and privileges provided to them by the Contract. The
Contract cannot be jointly owned by both a non-natural person and a natural
person.
You can use the Contract with or without a qualified plan. A qualified plan is
a personal retirement savings plan, such as an IRA or tax-sheltered annuity,
that meets the requirements of the Internal Revenue Code. Qualified plans may
limit or modify your rights and privileges under the Contract. We use the term
"QUALIFIED CONTRACT" to refer to a Contract issued with a qualified plan. See
"Qualified Plans" on page __.
You may change the Contract Owner at any time. Once we have received a
satisfactory written request for a change of Contract Owner, the change will
take effect as of the date you signed it. We are not liable for any payment we
make or other action we take before receiving any written request for a change
from you.
ANNUITANT
The Annuitant is the individual whose age determines the latest Payout Start
Date and whose life determines the amount and duration of income payments
(other than under Income Plans with guaranteed payments for a specified
period). You may name a new Annuitant only upon the death of the current
Annuitant. You may designate a joint Annuitant, who is a second person on
whose life income payments depend, at the time you select an Income Plan.
If you select an Income Plan that depends on the Annuitant or a joint
Annuitant's life, we may require proof of age and sex before income payments
begin and proof that the Annuitant or joint Annuitant is still alive before we
make each payment.
BENEFICIARY
The Beneficiary is the person who may elect to receive the death benefit or
become the new Contract Owner if the sole surviving Contract Owner dies before
the Payout Start Date. If the sole surviving Contract Owner dies after the
Payout Start Date, the Beneficiary will receive any guaranteed income payments
scheduled to continue.
You may name one or more Beneficiaries when you apply for a Contract. You may
change or add Beneficiaries at any time by writing to us before income
payments begin, unless you have designated an irrevocable Beneficiary. We will
14
<PAGE>
provide a change of Beneficiary form to be signed and filed with us. Any
change will be effective at the time you sign the written notice. Until we
receive your written notice to change a Beneficiary, we are entitled to rely
on the most recent Beneficiary information in our files. We will not be liable
as to any payment or settlement made prior to receiving the written notice.
Accordingly, if you wish to change your Beneficiary, you should deliver your
written notice to us promptly.
If you did not name a Beneficiary or unless otherwise provided in the
Beneficiary designation, if a Beneficiary predeceases the owner and there are
no other surviving Beneficiaries, the new Beneficiary will be:
o your spouse or, if he or she is no longer alive,
o your surviving children equally, or if you have no surviving
children,
o your estate.
If more than one Beneficiary survives you, we will divide the death benefit
among your Beneficiaries according to your most recent written instructions.
If you have not given us written instructions, we will pay the death benefit
in equal amounts to the Beneficiaries. If one of the Beneficiaries dies before
you, we will divide the death benefit among the surviving Beneficiaries.
MODIFICATION OF THE CONTRACT
Only an Allstate officer may approve a change in or waive any provision of the
Contract. Any change or waiver must be in writing. None of our agents has the
authority to change or waive the provisions of the Contract. We may not change
the terms of the Contract without your consent, except to conform the Contract
to applicable law or changes in the law. If a provision of the Contract is
inconsistent with state law, we will follow state law.
ASSIGNMENT
We will not honor an assignment of an interest in a Contract as collateral or
security for a loan. No Beneficiary may assign benefits under the Contract
until they are due. We will not be bound by any assignment until the assignor
signs it and files it with us. We are not responsible for the validity of any
assignment. Federal law prohibits or restricts the assignment of benefits
under many types of retirement plans and the terms of such plans may
themselves contain restrictions on assignments. An assignment may also result
in taxes or tax penalties. YOU SHOULD CONSULT WITH AN ATTORNEY BEFORE TRYING
TO ASSIGN YOUR CONTRACT.
15
<PAGE>
PURCHASES
-----------------------------------------------------------------------------
MINIMUM PURCHASE PAYMENTS
Your initial purchase payment must be at least $1,000 ($500 for Qualified
Contracts; $10,000 for Putnam Allstate Advisor - L and Putnam Allstate Advisor
Plus Contracts). All subsequent purchase payments under a Contract must be
$500 or more. You may make purchase payments at any time prior to the Payout
Start Date. The most we accept without our prior approval is $1 million. We
reserve the right to limit the availability of the investment alternatives for
additional investments. We also reserve the right to reject any application.
AUTOMATIC ADDITIONS PROGRAM
You may make subsequent purchase payments of $50 or more per month by
automatically transferring money from your bank account. Please consult with
your sales representative for detailed information.
ALLOCATION OF PURCHASE PAYMENTS
At the time you apply for a Contract, you must decide how to allocate your
purchase payment (net purchase payment in the case of Putnam Allstate Advisor
- - A Contracts) among the investment alternatives. For Putnam Allstate Advisor
- - A Contracts, your net purchase payment is your purchase payment less the
applicable sales charge. The allocation you specify on your application will
be effective immediately. All allocations must be in whole percents that total
100% or in whole dollars. You can change your allocations by calling
1-800-390-1277.
We will allocate your purchase payments (net purchase payment in the case of
Putnam Allstate Advisor - A Contracts) to the investment alternatives
according to your most recent instructions on file with us. Unless you notify
us in writing otherwise, we will allocate subsequent purchase payments
according to the allocation for the previous purchase payment. We will effect
any change in allocation instructions at the time we receive written notice of
the change in good order.
We will credit the initial purchase payment (net purchase payment in the case
of Putnam Allstate Advisor - A Contracts) that accompanies your completed
application to your Contract within 2 business days after we receive the
payment at our home office. If your application is incomplete, we will ask you
to complete your application within 5 business days. If you do so, we will
credit your initial purchase payment to your Contract within that 5 business
day period. If you do not, we will return your purchase payment at the end of
the 5 business day period unless you expressly allow us to hold it until you
complete the application. We will credit subsequent purchase payments to the
Contract at the close of the business day on which we receive the purchase
payment at our home office.
We use the term "business day" to refer to each day Monday through Friday that
the New York Stock Exchange is open for business. We also refer to these days
as "Valuation Dates." Our business day closes when the New York Stock Exchange
closes, usually 4 p.m. Eastern Time (3 p.m. Central Time). If we receive your
purchase payment after 3 p.m. Central Time on any Valuation Date, we will
credit your purchase payment using the Accumulation Unit Values computed on
the next Valuation Date.
CREDIT ENHANCEMENT (PUTNAM ALLSTATE ADVISOR PLUS CONTRACTS ONLY)
Each time you make a purchase payment, we will add to your Contract Value a
Credit Enhancement equal to 4% of the purchase payment. If you exercise your
Right to Cancel the Contract, the amount we refund to you will not include any
Credit Enhancement. See "Right to Cancel" below for details. The Credit
Enhancement may not be available in all states.
We will allocate any Credit Enhancements to the investment alternatives
according to the allocation instructions you have on file with us at the time
we receive your purchase payment. We will allocate each Credit Enhancement
among the investment alternatives in the same proportions as the corresponding
purchase payment. For purposes of determining the death benefit and the amount
16
<PAGE>
applied to an Income Plan, Credit Enhancements will be included with purchase
payments. We do not consider Credit Enhancements to be investments in the
Contract for income tax purposes.
We use a portion of the withdrawal charge and mortality and expense risk
charge to help recover the cost of providing the Credit Enhancement under the
Contract. See "Expenses." Under certain circumstances (such as a period of
poor market performance) the cost associated with the Credit Enhancement may
exceed the sum of the Credit Enhancement and any related earnings. You should
consider this possibility before purchasing the Contract.
RIGHT TO CANCEL
You may cancel your Contract by returning it to us within the Cancellation
Period, which is the 20 day period after you receive the Contract, or such
longer period that your state may require. You may return it by delivering it
or mailing it to us. If you exercise this "Right to Cancel," the Contract
terminates and we will pay you the full amount of your purchase payments
allocated to the Fixed Account. We also will return your purchase payments
allocated to the Variable Account adjusted, to the extent federal or state law
permits, to reflect investment gain or loss that occurred from the date of
allocation through the date of cancellation.
For Putnam Allstate Advisor Plus Contracts, we are applying for regulatory
relief to enable us to recover the amount of any Credit Enhancement applied to
Contracts that are cancelled during the Cancellation Period. Until we receive
such relief, we will return, upon cancellation, the amount you would have
received had there been no Credit Enhancement. That means that except in
states where we are required by law to return the amount of your purchase
payments, the amount we return will reflect any investment gain or loss
associated with your Variable Account purchase payments, will include any
charges deducted that reduced Contract Value prior to cancellation, and will
reflect any investment gain on the Credit Enhancement but will not include any
investment loss associated with the Credit Enhancement. After we receive the
requested regulatory relief, the amount we return to you upon exercise of this
Right to Cancel will not include any Credit Enhancement or the amount of
charges deducted prior to cancellation but will reflect, except in states
where we are required to return the amount of your purchase payments, any
investment gain or loss associated with your Variable Account purchase
payments and with the Credit Enhancement. We reserve the right to allocate
your purchase payments to the Putnam Money Market Variable Sub-Account during
the Cancellation Period.
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<PAGE>
CONTRACT VALUE
-----------------------------------------------------------------------------
On the Issue Date, the Contract Value is equal to the initial purchase payment
(net purchase payment in the case of Putnam Allstate Advisor-A Contracts; plus
the Credit Enhancement in the case of the Putnam Allstate Advisor Plus
Contracts). Thereafter, your Contract Value at any time during the
Accumulation Phase is equal to the sum of the value of your Accumulation Units
in the Variable Sub-Accounts you have selected, plus the value of your
interest in the Fixed Account Option(s) offered by your Contract.
ACCUMULATION UNITS
To determine the number of Accumulation Units of each Variable Sub-Account to
allocate to your Contract, we divide (i) the amount of the purchase payment
(net purchase payment in the case of Putnam Allstate Advisor - A Contracts) or
transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation
Unit Value of that Variable Sub-Account next computed after we receive your
payment or transfer. For example, if we receive a $10,000 purchase payment
(net purchase payment in the case of Putnam Allstate Advisor - A Contracts)
allocated to a Variable Sub-Account when the Accumulation Unit Value for the
Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable
Sub-Account to your Contract. For the Putnam Allstate Advisor Plus Contracts,
we also would credit you with an additional 40 Accumulation Units of the
Variable Sub-Account to reflect the 4% Credit Enhancement on your purchase
payment. See "Credit Enhancement." Withdrawals and transfers from a Variable
Sub-Account would, of course, reduce the number of Accumulation Units of that
Sub-Account allocated to your Contract.
ACCUMULATION UNIT VALUE
As a general matter, the Accumulation Unit Value for each Variable Sub-Account
for each Contract will rise or fall to reflect:
o changes in the share price of the Fund in which the Variable
Sub-Account invests, and
o the deduction of amounts reflecting the mortality and expense risk
charge, and any provision for taxes that have accrued since we
last calculated the Accumulation Unit Value.
We determine withdrawal charges, Retirement Income Guarantee charges (if
applicable), transfer fees, and contract maintenance charges (Putnam Allstate
Advisor Contracts only) separately for each Contract. They do not affect the
Accumulation Unit Value. Instead, we obtain payment of those charges and fees
by redeeming Accumulation Units. For details on how we compute Accumulation
Unit Values, please refer to the Statement of Additional Information.
We determine a separate Accumulation Unit Value for each Variable Sub-Account
for each Contract on each Valuation Date. We also determine separate sets of
Accumulation Unit Values for each Contract that reflect the cost of the
Enhanced Beneficiary Protection Option described on page __ below.
YOU SHOULD REFER TO THE PROSPECTUS FOR THE FUNDS THAT ACCOMPANIES THIS
PROSPECTUS FOR A DESCRIPTION OF HOW THE ASSETS OF EACH FUND ARE VALUED, SINCE
THAT DETERMINATION DIRECTLY BEARS ON THE ACCUMULATION UNIT VALUE OF THE
CORRESPONDING VARIABLE SUB-ACCOUNT AND, THEREFORE, YOUR CONTRACT VALUE.
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<PAGE>
INVESTMENT ALTERNATIVES: THE VARIABLE SUB-ACCOUNTS
-----------------------------------------------------------------------------
You may allocate your purchase payments (net purchase payments in the case of
Putnam Allstate Advisor - A Contracts) to up to 24 Variable Sub-Accounts. Each
Variable Sub-Account invests in the shares of a corresponding Fund. Each Fund
has its own investment objective(s) and policies. We briefly describe the
Funds below.
For more complete information about each Fund, including expenses and risks
associated with the Fund, please refer to the accompanying prospectus for the
Fund. You should carefully review the Fund prospectuses before allocating
amounts to the Variable Sub-Accounts. Putnam Investment Management, Inc.
("Putnam Management") serves as the investment adviser to each Fund.
<TABLE>
<CAPTION>
=====================================================================================================================
FUND: EACH FUND SEEKS:
=====================================================================================================================
<S> <C>
Putnam VT American Government Income Fund High current income with preservation of capital as a
secondary objective
---------------------------------------------------------------------------------------------------------------------
Putnam VT Asia Pacific Growth Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Diversified Income Fund High current income consistent with capital preservation
---------------------------------------------------------------------------------------------------------------------
Putnam VT The George Putnam Fund of Boston To provide a balanced investment composed of a well
diversified portfolio of stocks and bonds that will produce
both capital growth and current income
---------------------------------------------------------------------------------------------------------------------
Putnam VT Global Asset Allocation Fund A high level of long-term total return
consistent with preservation of capital
---------------------------------------------------------------------------------------------------------------------
Putnam VT Global Growth Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Growth and Income Fund Capital growth and current income
---------------------------------------------------------------------------------------------------------------------
Putnam VT Growth Opportunity Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Health Sciences Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT High Yield Fund High current income. Capital growth is a secondary objective
when consistent with high current income.
---------------------------------------------------------------------------------------------------------------------
Putnam VT Income Fund Current income consistent with preservation of capital
---------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth Fund Capital growth
---------------------------------------------------------------------------------------------------------------------
Putnam VT International Growth and Income Fund Capital growth. Current income is a secondary objective.
---------------------------------------------------------------------------------------------------------------------
Putnam VT International New Opportunities Fund Long-term capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Investors Fund Long-term growth of capital and any increased income that
results from this growth
---------------------------------------------------------------------------------------------------------------------
Putnam VT Money Market Fund As high a rate of current income as Putnam Management believes
is consistent with preservation of capital and maintenance of
liquidity.
---------------------------------------------------------------------------------------------------------------------
Putnam VT New Opportunities Fund Long-term capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT New Value Fund Long-term capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT OTC & Emerging Growth Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Research Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Small Cap Value Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Utilities Growth and Income Fund Capital growth and current income
---------------------------------------------------------------------------------------------------------------------
Putnam VT Vista Fund Capital appreciation
---------------------------------------------------------------------------------------------------------------------
Putnam VT Voyager Fund Capital appreciation
=====================================================================================================================
</TABLE>
AMOUNTS YOU ALLOCATE TO VARIABLE SUB-ACCOUNTS MAY GROW IN VALUE, DECLINE IN
VALUE, OR GROW LESS THAN YOU EXPECT, DEPENDING ON THE INVESTMENT PERFORMANCE
OF THE FUNDS IN WHICH THOSE VARIABLE SUB-ACCOUNTS INVEST. YOU BEAR THE
INVESTMENT RISK THAT THE FUNDS MIGHT NOT MEET THEIR INVESTMENT OBJECTIVES.
SHARES OF THE FUNDS ARE NOT DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED OR
19
<PAGE>
ENDORSED BY ANY BANK AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
20
<PAGE>
INVESTMENT ALTERNATIVES: THE FIXED ACCOUNT
-----------------------------------------------------------------------------
You may allocate all or a portion of your purchase payments to the Fixed
Account. You may choose from among 3 Fixed Account Options, including 2 Dollar
Cost Averaging Options and the Standard Fixed Account Option (only the
Standard Fixed Account Option is available under Putnam Allstate Advisor - L
or Putnam Allstate Advisor Plus Contracts). We may offer additional Fixed
Account options in the future. We will credit a minimum annual interest rate
of 3% to money you allocate to any of the Fixed Account Options available
under your Contract. The Fixed Account Options may not be available in all
states. In addition, Allstate may limit the availability of the Standard Fixed
Account Option. Please consult with your representative for current
information. The Fixed Account supports our insurance and annuity obligations.
The Fixed Account consists of our general assets other than those in
segregated asset accounts. We have sole discretion to invest the assets of the
Fixed Account, subject to applicable law. Any money you allocate to the Fixed
Account does not entitle you to share in the investment experience of the
Fixed Account.
DOLLAR COST AVERAGING FIXED ACCOUNT OPTIONS (PUTNAM ALLSTATE ADVISOR AND
PUTNAM ALLSTATE ADVISOR - A CONTRACTS ONLY)
You may establish a DOLLAR COST AVERAGING PROGRAM, as described on page __, by
allocating purchase payments (net purchase payments in the case of Putnam
Allstate Advisor - A Contracts) to the Fixed Account either for up to 6 months
(the "6 MONTH DOLLAR COST AVERAGING OPTION") or for up to 12 months (the "12
MONTH DOLLAR COST AVERAGING OPTION"). Your purchase payments (net purchase
payments in the case of Putnam Allstate Advisor - A Contracts) will earn
interest for the period you select at the current rates in effect at the time
of allocation. Rates may differ from those available for the Standard Fixed
Account Option described below.
You must transfer all of your money out of the 6 or 12 Month Dollar Cost
Averaging Options to other investment alternatives in equal installments. At
the end of the applicable 6 or 12 month period, we will transfer any remaining
amounts in the 6 or 12 Month Dollar Cost Averaging Options to the Putnam Money
Market Variable Sub-Account unless you request a different investment
alternative. Transfers out of the 6 or 12 Month Dollar Cost Averaging Options
do not count towards the 12 transfers you can make without paying a transfer
fee.
You may not transfer money from other investment alternatives to either the 6
or 12 Month Dollar Cost Averaging Options.
The 6 or 12 Month Dollar Cost Averaging Options may not be available in your
state. Please check with your representative for availability.
STANDARD FIXED ACCOUNT OPTION
Each purchase payment (net purchase payment in the case of Putnam Allstate
Advisor - A Contracts; plus the appropriate portion of the Credit Enhancement
in the case of Putnam Allstate Advisor Plus Contracts) or transfer allocated
to the Standard Fixed Account Option earns interest at the current rate in
effect at the time of allocation. We guarantee that rate for a period of years
we call GUARANTEE PERIODS. We are currently offering Guarantee Periods of 1
year in length. In the future we may offer Guarantee Periods of different
lengths or stop offering some Guarantee Periods. You select a Guarantee Period
for each purchase or transfer. After the initial Guarantee Period, we will
guarantee a renewal rate.
We will credit interest daily at a rate that will compound over the year to
the annual interest rate we guaranteed at the time of allocation.
21
<PAGE>
INVESTMENT ALTERNATIVES: TRANSFERS
-----------------------------------------------------------------------------
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase, you may transfer Contract Value among the
investment alternatives. We do not permit transfers into any Dollar Cost
Averaging Fixed Account Option. You may request transfers in writing on a form
that we provided or by telephone according to the procedure described below.
You may make 12 transfers per Contract Year without charge. A transfer fee
equal to 0.50% of the amount transferred applies to each transfer after the
12th transfer in any Contract Year.
The minimum amount that you may transfer from the Standard Fixed Account
Option or a Variable Sub-Account is $100 or the total remaining balance in the
Standard Fixed Account Option or the Variable Sub-Account, if less. These
limitations do not apply to the 6-month or 12-month Dollar Cost Averaging
Fixed Account Options.
The most you can transfer from the Standard Fixed Account Option during any
Contract Year is the greater of (i) 30% of the Standard Fixed Account Option
balance as of the last Contract Anniversary or (ii) the greatest dollar amount
of any prior transfer from the Standard Fixed Account Option. This limitation
does not apply to the Dollar Cost Averaging Program. Also, if the interest
rate on any renewed Guarantee Period is at least one percentage point less
than the previous interest rate, you may transfer up to 100% of the monies
receiving that reduced rate within 60 days of the notification of the interest
rate decrease.
We will process transfer requests that we receive before 3:00 p.m. Central
Time on any Valuation Date using the Accumulation Unit Values for that Date.
We will process requests completed after 3:00 p.m. on any Valuation Date using
the Accumulation Unit Values for the next Valuation Date. The Contract permits
us to defer transfers from the Fixed Account Options for up to 6 months from
the date we receive your request. If we decide to postpone transfers from any
Fixed Account Option for 30 days or more, we will pay interest as required by
applicable law. Any interest would be payable from the date we receive the
transfer request to the date we make the transfer.
We reserve the right to waive any transfer restrictions.
TRANSFERS DURING THE PAYOUT PHASE
During the Payout Phase, you may make transfers among the Variable
Sub-Accounts so as to change the relative weighting of the Variable
Sub-Accounts on which your variable income payments will be based. You may
make up to 12 transfers per Contract Year. You may not convert any portion of
your fixed income payments into variable income payments. You may make
transfers from the Variable Sub-Accounts to increase the proportion of your
income payments consisting of fixed income payments if Income Plan 3,
described below, is in effect.
TELEPHONE TRANSFERS
You may make transfers by telephone by calling 1-800-390-1277. The cut off
time for telephone transfer requests is 3:00 p.m. Central time. In the event
that the New York Stock Exchange closes early, i.e., before 3:00 p.m. Central
Time, or in the event that the Exchange closes early for a period of time but
then reopens for trading on the same day, we will process telephone transfer
requests as of the close of the Exchange on that particular day. We will not
accept telephone requests received from you at any telephone number other than
the number that appears in this paragraph or received after the close of
trading on the Exchange. If you own the Contract with a joint Contract Owner,
22
<PAGE>
unless we receive contrary instructions, we will accept instructions from
either you or the other Contract Owner.
We use procedures that we believe provide reasonable assurance that the
telephone transfers are genuine. For example, we tape telephone conversations
with persons purporting to authorize transfers and request identifying
information. Accordingly, we disclaim any liability for losses resulting from
allegedly unauthorized telephone transfers. However, if we do not take
reasonable steps to help ensure that a telephone authorization is valid, we
may be liable for such losses.
EXCESSIVE TRADING LIMITS
We reserve the right to limit transfers in any Contract Year, or to refuse any
transfer request for a Contract Owner or certain Contract Owners, if:
o we believe, in our sole discretion, that excessive trading by such
Contract Owner or Owners, or a specific transfer request or group
of transfer requests, may have a detrimental effect on the
Accumulation Unit Values of any Variable Sub-Account or the share
prices of the corresponding Funds or would be to the disadvantage
of other Contract Owners; or
o we are informed by one or more of the corresponding Funds that
they intend to restrict the purchase or redemption of Fund shares
because of excessive trading or because they believe that a
specific transfer or group of transfers would have a detrimental
effect on the prices of Fund shares.
We may apply the restrictions in any manner reasonably designed to prevent
transfers that we consider disadvantageous to other Contract Owners.
DOLLAR COST AVERAGING PROGRAM
You may automatically transfer a set amount from any Variable Sub-Account or
Fixed Account Option to any of the other Variable Sub-Accounts through our
Dollar Cost Averaging Program. The Program is available only during the
Accumulation Phase.
We will not charge a transfer fee for transfers made under this Program, nor
will such transfers count against the 12 transfers you can make each Contract
Year without paying a transfer fee.
The theory of dollar cost averaging is that if purchases of equal dollar
amounts are made at fluctuating prices, the aggregate average cost per unit
will be less than the average of the unit prices on the same purchase dates.
However, participation in this Program does not assure you of a greater profit
from your purchases under the Program nor will it prevent or necessarily
reduce losses in a declining market.
AUTOMATIC FUND REBALANCING PROGRAM
Once you have allocated your money among the Variable Sub-Accounts, the
performance of each Sub-Account may cause a shift in the percentage you
allocated to each Sub-Account. If you select our AUTOMATIC FUND REBALANCING
PROGRAM, we will automatically rebalance the Contract Value in each Variable
Sub-Account and return it to the desired percentage allocations. Money you
allocate to the Fixed Account will not be included in the rebalancing.
We will rebalance your account quarterly, semi-annually, or annually. We will
measure these periods according to your instructions. We will transfer amounts
among the Variable Sub-Accounts to achieve the percentage allocations you
specify. You can change your allocations at any time by contacting us in
writing or by telephone. The new allocation will be effective with the first
rebalancing that occurs after we receive your written or telephone request. We
are not responsible for rebalancing that occurs prior to receipt of proper
notice of your request.
23
<PAGE>
Example:
Assume that you want your initial purchase payment (net purchase payment
in the case of Putnam Allstate Advisor - A Contracts) split among 2
Variable Sub-Accounts. You want 40% to be in the Putnam Income Variable
Sub-Account and 60% to be in the Putnam Global Growth Variable
Sub-Account. Over the next 2 months the bond market does very well while
the stock market performs poorly. At the end of the first quarter, the
Putnam Income Variable Sub-Account now represents 50% of your holdings
because of its increase in value. If you choose to have your holdings in
a Contract or Contracts rebalanced quarterly, on the first day of the
next quarter we would sell some of your units in the Putnam Income
Variable Sub-Account for the appropriate Contract(s) and use the money
to buy more units in the Putnam Global Variable Sub-Account so that the
percentage allocations would again be 40% and 60% respectively.
The Automatic Fund Rebalancing Program is available only during the
Accumulation Phase. The transfers made under the program do not count towards
the 12 transfers you can make without paying a transfer fee, and are not
subject to a transfer fee. We may sometimes refer to this Program as the
"Putnam Automatic Rebalancing Program."
Fund rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your Contract
Value allocated to the better performing segments.
24
<PAGE>
EXPENSES
-----------------------------------------------------------------------------
As a Contract Owner, you will bear, directly or indirectly, the charges and
expenses described below.
CONTRACT MAINTENANCE CHARGE (PUTNAM ALLSTATE ADVISOR CONTRACTS ONLY)
During the Accumulation Phase, on each Contract Anniversary, we will deduct a
$30 contract maintenance charge from your assets invested in the Putnam Money
Market Variable Sub-Account. If there are insufficient assets in that Variable
Sub-Account, we will deduct the charge proportionally from the other Variable
Sub-Accounts. We also will deduct this charge if you withdraw your entire
Contract Value, unless your Contract qualifies for a waiver. During the Payout
Phase, we will deduct the charge proportionately from each income payment.
The charge is to compensate us for the cost of administering the Contracts and
the Variable Account. Maintenance costs include expenses we incur in billing
and collecting purchase payments; keeping records; processing death claims,
cash withdrawals, and policy changes; proxy statements; calculating
Accumulation Unit Values and income payments; and issuing reports to Contract
Owners and regulatory agencies. We cannot increase the charge. We will waive
this charge if:
o your total Contract Value is greater than $50,000 on a Contract
Anniversary or on the Payout Start Date, or
o all of your money is allocated to the Fixed Account Options on a
Contract Anniversary or all income payments are fixed income
payments.
We also reserve the right to waive this charge if you own more than one
Contract and the Contracts meet certain minimum dollar amount requirements. In
addition, we reserve the right to waive this charge for all Contracts.
MORTALITY AND EXPENSE RISK CHARGE
We deduct a mortality and expense risk charge daily from the net assets you
have invested in the Variable Sub-Accounts. The annual rate of the charge is:
o 0.80% for Putnam Allstate Advisor - A Contracts
o 1.25% for Putnam Allstate Advisor Contracts
o 1.65% for Putnam Allstate Advisor - L Contracts
o 1.60% for Putnam Allstate Advisor Plus Contracts
The mortality and expense risk charge is for all the insurance benefits
available with your Contract (including our guarantee of annuity rates and the
death benefits), for certain expenses of the Contract, and for assuming the
risk (expense risk) that the current charges will be sufficient in the future
to cover the cost of administering the Contract (and the cost of the Credit
Enhancement for the Putnam Allstate Advisor Plus Contracts). If the charges
under the Contract are not sufficient, then Allstate will bear the loss. If
you select the Enhanced Beneficiary Protection Option, the mortality and
expense risk charge will include an additional 0.15% for the Option.
Allstate reserves the right to raise the Enhanced Beneficiary Protection
Option charge to up to 0.25%. However, once your Option is in effect, Allstate
cannot change the fee that applies to your Contract. We charge the additional
fee for the Enhanced Beneficiary Protection Option to compensate us for the
additional risk that we accept by providing the Option.
25
<PAGE>
We guarantee the mortality and expense risk charge and we cannot increase it.
We assess the mortality and expense risk charge during both during the
Accumulation Phase and the Payout Phase.
RETIREMENT INCOME GUARANTEE CHARGE
We impose a separate charge for each Retirement Income Guarantee Rider. The
charges equal, on an annual basis, 0.05% of the income base for Retirement
Income Guarantee Rider 1 and 0.30% of the income base for Retirement Income
Guarantee Rider 2. We reserve the right to change the Rider fee. However, once
we issue your Rider, we cannot change the Rider fee that applies to your
Contract. The Rider 1 fee will never exceed 0.15% and the Rider 2 fee will
never exceed 0.50%. See "Retirement Income Guarantee Riders" for details.
TRANSFER FEE
We impose a fee upon transfers in excess of 12 during any Contract Year. The
fee is equal to 0.50% of the dollar amount transferred. We will not charge a
transfer fee on transfers that are part of a Dollar Cost Averaging Program or
Automatic Fund Rebalancing Program.
SALES CHARGE (PUTNAM ALLSTATE ADVISOR - A CONTRACTS ONLY)
We may assess a sales charge on all purchase payments ranging from 0.50% to
5.75% of the amount of the purchase payment. The sales charge percentage will
vary based upon the amount of the purchase payment(s) received. A schedule
showing how the sales charge is assessed appears on page __, above.
We use the amounts obtained from the sales charge to pay sales commissions and
other promotional or distribution expenses associated with marketing the
Contracts. To the extent that the sales charge does not cover all sales
commissions and other promotional or distribution expenses, we may use any of
our corporate assets, including any profit which may arise from the mortality
and expense risk charge or any other charges or fee described above, to make
up any difference.
REDUCTION OF SALES CHARGE. You may also be entitled to a reduced sales charge
if you (1) sign a letter of intent and invest a combined purchase payment
amount of $50,000 or more within a 13-month period; and/or (2) have related
contracts with us that qualify for rights of accumulation privileges. See
"Rights of Accumulation" below. In addition, no sales charge will apply to
purchase payments made under Contracts issued to employees of Allstate and
certain other eligible organizations.
LETTER OF INTENT: A letter of intent allows you to set your own investment
goal of $50,000 or more over a 13-month period. We base the sales charge on
the purchase payments you make during the 13-month period on your investment
goal. In essence, we reduce your sales charge on purchase payments made during
the 13-month period as though you invested the total amount of purchase
payments (your investment goal) in one lump sum.
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 4.50%. You make an
initial purchase payment of $20,000. We deduct a reduced sales charge of
4.50% from your initial purchase payment. Two months later you make a
subsequent purchase payment of $30,000. We again deduct a reduced sales
charge of 4.50% from your purchase payment. Without a letter of intent
the sales charge for each purchase payment would have been 5.75%.
You may elect to participate in the letter of intent program at any time.
However, we do not retroactively reduce sales charges on purchase payments
made before we receive your letter of intent. If you choose to participate in
this program at the time you apply for the Contract, you must complete the
letter of intent section on the application. If you elect to participate in
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the program after your Contract is issued, you must complete the appropriate
form. The letter of intent form is available by calling our Annuity Service
Center at 1-800/390-1277.
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 upon a full
surrender prior to the end of the 13-month period, we will deduct from your
Contract the difference between (1) the sales charge applicable to the actual
amount of purchase payments you made during the period and (2) the sales
charge you actually paid. These charges will be deducted from your Contract
proportionately from each investment alternative at the end of the 13-month
period.
If you exceed your investment goal and reach the next breakpoint, the sales
charge deducted on the next payment is based on the next breakpoint level.
However, we do not retroactively reduce sales charges on previous purchase
payments.
At any time during the 13-month period, you may increase your investment goal.
You must inform us in writing. We include purchase payments received during
the 90 days prior to your notice in determining the sales charge on purchase
payments made from the date of notice through the end of the original 13-month
period.
We reserve the right to modify, suspend or terminate this program at any time.
This program may not be available in all states.
RIGHTS OF ACCUMULATION: You may qualify for a reduced sales charge through
rights of accumulation. Rights of accumulation involves combining your current
purchase payment with your current Contract Value of your Putnam Allstate
Advisor - A Contract and/or the current Contract Values of eligible related
contracts. If through accumulation you reach the next breakpoint level, we
reduce your sales charge accordingly.
Related contracts include certain other Putnam Allstate Advisor - A Contracts
owned by you. There may be other requirements for qualification. For
information on which related contracts qualify for rights of accumulation
privileges, please contact your investment representative.
In order to use rights of accumulation to reduce your sales charge, for each
purchase payment, you or your investment representative must inform us in
writing of the related contracts.
The sales charge for purchase payments will be based on the breakpoint
corresponding to the sum of (1) your new purchase payment; and (2) your
current Contract Value; and (3) the current Contract Value(s) of your eligible
related contract(s).
Example:
Assume your Contract has a current Contract Value of $20,000. You have a
second Contract with us that qualifies for rights of accumulation that
has a current Contract Value of $25,000. You make a $5,000 purchase
payment to your current Contract and include your rights of accumulation
number with your payment. To determine the sales charge applicable to
your purchase payment we first calculate the sum of (1) your current
Contract Value ($20,000); (2) the current Contract Value of your related
Contract ($25,000); and (3) your current purchase payment ($5,000). The
sum of these values is $50,000. We deduct the sales charge corresponding
to a $50,000 purchase payment, or 4.50%, from your $5,000 purchase
payment.
We reserve the right to modify, suspend or terminate this program at any
time. This program may not be available in all states.
WITHDRAWAL CHARGE
We may assess a withdrawal charge from the purchase payment(s) you withdraw.
The amount of the charge will depend on the number of years that have elapsed
since we received the purchase payment being withdrawn. A schedule showing the
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charge applicable for each Contract appears on page ___, above. The withdrawal
charge for Putnam Allstate Advisor - A Contracts currently applies only to
Contracts that have total purchase payments in excess of $1,000,000. Under
Putnam Allstate Advisor and Putnam Allstate Advisor Plus Contracts, you can
withdraw up to the FREE WITHDRAWAL AMOUNT each Contract Year without paying
the withdrawal charge. For Putnam Allstate Advisor Contracts, the Free
Withdrawal Amount is the greater of earnings not previously withdrawn, or 15%
of total purchase payments. For Putnam Allstate Advisor Plus Contracts, the
Free Withdrawal Amount is 15% of total purchase payments. Unused portions of
this 15% "Free Withdrawal Amount" are not carried forward to future Contract
Years. Credit Enhancements are not considered Purchase Payments when
determining the Free Withdrawal Amount.
We will deduct withdrawal charges, if applicable, from the amount paid. For
purposes of the withdrawal charge, we will treat withdrawals as coming from
the oldest purchase payments first. However, for federal income tax purposes,
earnings are considered to come out first, which means you pay taxes on the
earnings portion of your withdrawal.
We do not apply a withdrawal charge in the following situations:
o on the Payout Start Date (a withdrawal charge may apply if you
elect to receive income payments for a specified period of less
than 120 months);
o the death of the Contract Owner or Annuitant (unless the
Settlement Value is used);
o withdrawals taken to satisfy IRS minimum distribution rules for
the Contract; or
o withdrawals that qualify for one of the waivers described below
(waivers available for Putnam Allstate Advisor and Putnam Allstate
Advisor Plus Contracts only).
We use the amounts obtained from the withdrawal charge to pay sales
commissions and other promotional or distribution expenses associated with
marketing the Contracts, (and to help defray the cost of the Credit
Enhancement for the Putnam Allstate Advisor Plus Contracts). To the extent
that the withdrawal charge does not cover all sales commissions and other
promotional or distribution expenses, or the cost of the Credit Enhancement,
we may use any of our corporate assets, including potential profit which may
arise from the mortality and expense risk charge or any other charges or fee
described above, to make up any difference.
Withdrawals also may be subject to tax penalties or income tax. You should
consult your own tax counsel or other tax advisers regarding any withdrawals.
The following waivers are available for Putnam Allstate Advisor and Putnam
Allstate Advisor Plus Contracts only.
CONFINEMENT WAIVER. We will waive the withdrawal charge on any withdrawal
taken prior to the Payout Start Date under your Contract if the following
conditions are satisfied:
1) you or the Annuitant, if the Contract Owner is not a living
individual, are first confined to a long term care facility or a
hospital for at least 90 consecutive days. You or the Annuitant must
enter the long term care facility or hospital at least 30 days after the
Issue Date,
2) we receive your request for withdrawal and written proof of the stay
no later than 90 days following the end of your or the Annuitant's stay
at the long term care facility or hospital, and
3) a physician must have prescribed the stay and the stay must be
medically necessary (as defined in the Contract).
TERMINAL ILLNESS WAIVER. We will waive the withdrawal charge on any withdrawal
under your Contract taken prior to the Payout Start Date if:
1) you or the Annuitant, if the Contract Owner is not a living
individual, are diagnosed by a physician as having a terminal
illness (as defined in the Contract) at least 30 days after the
Issue Date, and
2) you provide adequate proof of diagnosis to us before or at the
time you request the withdrawal.
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UNEMPLOYMENT WAIVER. We will waive the withdrawal charge on one partial or
full withdrawal from your Contract, if you meet the following requirements:
1) you or the Annuitant, if the Contract Owner is not a living
individual, become unemployed at least one year after the Issue
Date,
2) you or the Annuitant receive unemployment compensation (as defined
in the Contract) for at least 30 days as a result of that
unemployment, and
3) you or the Annuitant claim this benefit within 180 days of your or
the Annuitant's initial receipt of unemployment compensation.
You may exercise this benefit once before the Payout Start Date.
Please refer to your Contract for more detailed information about the terms
and conditions of these waivers. These waivers are not available for Putnam
Allstate Advisor - A and Putnam Allstate Advisor - L Contracts.
The laws of your state may limit the availability of these waivers and may
also change certain terms and/or benefits available under the waivers. You
should consult your Contract for further details on these variations. Also,
even if you do not need to pay our withdrawal charge because of these waivers,
you still may be required to pay taxes or tax penalties on the amount
withdrawn. You should consult your tax adviser to determine the effect of a
withdrawal on your taxes.
PREMIUM TAXES
Some states and other governmental entities (e.g., municipalities) charge
premium taxes or similar taxes. We are responsible for paying these taxes and
will deduct them from your Contract Value. Some of these taxes are due when
the Contract is issued, others are due when income payments begin or upon
surrender. Our current practice is not to charge anyone for these taxes until
income payments begin or when a total withdrawal occurs including payment upon
death. We may some time in the future discontinue this practice and deduct
premium taxes from the purchase payments. Premium taxes generally range from
0% to 4%, depending on the state.
At the Payout Start Date, we deduct the charge for premium taxes from each
investment alternative in the proportion that the Contract Owner's value in
the investment alternative bears to the total Contract Value.
OTHER EXPENSES
Each Fund deducts advisory fees and other expenses from its assets. You
indirectly bear the charges and expenses of the Fund whose shares are held by
the Variable Sub-Accounts. These fees and expenses are described in the
accompanying prospectus for the Funds. For a summary of current estimates of
those charges and expenses, see pages ___ above. We may receive compensation
from the Funds' investment adviser, distributor, or their affiliates for
administrative services we provide to the Funds.
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ACCESS TO YOUR MONEY
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You can withdraw some or all of your Contract Value at any time prior to the
Payout Start Date. Withdrawals also are available under limited circumstances
on or after the Payout Start Date. See "Income Plans" on page __.
The amount payable upon withdrawal is the Contract Value next computed after
we receive the request for a withdrawal at our home office, less any
withdrawal charges, income tax withholding, contract maintenance charge
(Putnam Allstate Advisor Contracts only), any applicable Retirement Guarantee
Rider fee, and any premium taxes. We will pay withdrawals from the Variable
Account within 7 days of receipt of the request, subject to postponement in
certain circumstances.
You can withdraw money from the Variable Account or the Fixed Account
Option(s) available under your Contract. To complete a partial withdrawal from
the Variable Account, we will cancel Accumulation Units in an amount equal to
the withdrawal and any applicable withdrawal charge and premium taxes.
You must name the investment alternative from which you are taking the
withdrawal. If none is named, then the withdrawal request is incomplete and
cannot be honored.
In general, you must withdraw at least $50 at a time. If you request a total
withdrawal, we may require that you return your Contract to us.
POSTPONEMENT OF PAYMENTS
We may postpone the payment of any amounts due from the Variable Account under
the Contract if:
1) the New York Stock Exchange is closed for other than usual
weekends or holidays, or trading on the Exchange is otherwise
restricted,
2) an emergency exists as defined by the SEC, or
3) the SEC permits delay for your protection.
In addition, we may delay payments or transfers from the Fixed Account
Option(s) available under your Contract for up to 6 months or shorter period
if required by law. If we delay payment or transfer for 30 days or more, we
will pay interest as required by law.
SYSTEMATIC WITHDRAWAL PROGRAM
You may choose to receive systematic withdrawal payments on a monthly,
quarterly, semi-annual, or annual basis at any time prior to the Payout Start
Date. Please consult your sales representative or call us at 1-800-390-1277
for more information. Depending on fluctuations in the value of the Variable
Sub-Accounts and the value of the Fixed Account Option(s) available under your
Contract, systematic withdrawals may reduce or even exhaust the Contract
Value. Income taxes may apply to systematic withdrawals. Please consult your
tax adviser before taking any withdrawal.
MINIMUM CONTRACT VALUE
If your request for a partial withdrawal would reduce the Contract Value to
less than $1,000, we may treat it as a request to withdraw your entire
Contract Value. Your Contract will terminate if you withdraw all of your
Contract Value. We will, however, ask you to confirm your withdrawal request
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before terminating your Contract. If we terminate your Contract, we will
distribute to you its Contract Value, less withdrawal and other charges and
taxes.
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INCOME PAYMENTS
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PAYOUT START DATE
The Payout Start Date is the day that we apply your Contract Value to an
Income Plan. The Payout Start Date must be at least 30 days after the Issue
Date and on or before the later of:
o the Annuitant's 90th birthday, or
o the 10th Contract Anniversary.
You may change the Payout Start Date at any time by notifying us in writing of
the change at least 30 days before the scheduled Payout Start Date. Absent a
change, we will use the Payout Start Date stated in your Contract.
INCOME PLANS
You may choose and change your choice of Income Plan until 30 days before the
Payout Start Date. If you do not select an Income Plan, we will make income
payments in accordance with Income Plan 1 with guaranteed payments for 10
years. After the Payout Start Date, you may not make withdrawals (except as
described below) or change your choice of Income Plan.
Three Income Plans are available under the Contract. Each is available to
provide:
o fixed income payments;
o variable income payments; or
o a combination of the two.
The three Income Plans are:
INCOME PLAN 1 -- LIFE INCOME WITH GUARANTEED PAYMENTS. Under this plan,
we make periodic income payments for at least as long as the Annuitant
lives. If the Annuitant dies before we have made all of the guaranteed
income payments, we will continue to pay the remainder of the guaranteed
income payments as required by the Contract.
INCOME PLAN 2 -- JOINT AND SURVIVOR LIFE INCOME WITH GUARANTEED
PAYMENTS. Under this plan, we make periodic income payments for at least
as long as either the Annuitant or the joint Annuitant, named at the
time the plan was selected, is alive. If both the Annuitant and the
joint Annuitant die before we have made all of the guaranteed income
payments, we will continue to pay the remainder of the guaranteed income
payments as required by the Contract.
INCOME PLAN 3 -- GUARANTEED PAYMENTS FOR A SPECIFIED PERIOD (5 YEARS TO
30 YEARS). Under this plan, we make periodic income payments for the
period you have chosen. These payments do not depend on the Annuitant's
life. Income payments for less than 120 months may be subject to a
withdrawal charge (does not apply to Putnam Allstate Advisor - A
Contracts). We will deduct the mortality and expense risk charge from
the assets of the Variable Sub-Accounts supporting this Plan even though
we may not bear any mortality risk.
The length of any guaranteed payment period under your selected Income Plan
generally will affect the dollar amount of each income payment. As a general
rule, longer guarantee periods result in lower income payments, all other
things being equal. For example, if you choose an Income Plan with payments
that depend on the life of the Annuitant but with no minimum specified period
for guaranteed payments, the income payments generally will be greater than
the income payments made under the same Income Plan with a minimum specified
period for guaranteed payments.
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If you choose Income Plan 1 or 2, or, if available, another Income Plan with
payments that continue for the life of the Annuitant or joint Annuitant, we
may require proof of age and sex of the Annuitant or joint Annuitant before
starting income payments, and proof that the Annuitant or joint Annuitant are
alive before we make each payment. Please note that under such Income Plans,
if you elect to take no minimum guaranteed payments, it is possible that the
payee could receive only 1 income payment if the Annuitant and any joint
Annuitant both die before the second income payment, or only 2 income payments
if they die before the third income payment, and so on.
Generally, you may not make withdrawals after the Payout Start Date. One
exception to this rule applies if you are receiving income payments that do
not depend on the life of the Annuitant (such as under Income Plan 3). In that
case you may terminate the income payments at any time and receive a lump sum
equal to the present value of the remaining payments due. A withdrawal charge
may apply. We also deduct applicable premium taxes from the Contract Value at
the Payout Start Date.
We may make other Income Plans available. You may obtain information about
them by writing or calling us.
You must apply at least the Contract Value in the Fixed Account on the Payout
Start Date to fixed income payments. If you wish to apply any portion of your
Fixed Account balance to provide variable income payments, you should plan
ahead and transfer that amount to the Variable Sub-Accounts prior to the
Payout Start Date. If you do not tell us how to allocate your Contract Value
among fixed and variable income payments, we will apply your Contract Value in
the Variable Account to variable income payments and your Contract Value in
the Fixed Account to fixed income payments.
We will apply your Contract Value, less applicable taxes, to your Income Plan
on the Payout Start Date. We can make income payments in monthly, quarterly,
semi-annual or annual installments, as you select. If the Contract Owner has
not made any purchase payments for at least 2 years preceding the Payout Start
Date, and the Contract Value is less than $2,000, or not enough to provide an
initial payment of at least $20, and state law permits, we may:
o terminate the Contract and pay you the Contract value, less any
applicable taxes, in a lump sum instead of the periodic payments
you have chosen, or
o reduce the frequency of your payments so that each payment will be
at least $20.
VARIABLE INCOME PAYMENTS
The amount of your variable income payments depends upon the investment
results of the Variable Sub-Accounts you select, the premium taxes you pay,
the age and sex of the Annuitant, and the Income Plan you choose. We guarantee
that the payments will not be affected by (a) actual mortality experience and
(b) the amount of our administration expenses.
We cannot predict the total amount of your variable income payments. Your
variable income payments may be more or less than your total purchase payments
because (a) variable income payments vary with the investment results of the
underlying Funds; and (b) the Annuitant could live longer or shorter than we
expect based on the tables we use.
In calculating the amount of the periodic payments in the annuity tables in
the Contract, we assumed an annual investment rate of 3%. (We reserve the
right to offer other assumed investment rates.) If the actual net investment
return of the Variable Sub-Accounts you choose is less than this assumed
investment rate, then the dollar amount of your variable income payments will
decrease. The dollar amount of your variable income payments will increase,
however, if the actual net investment return exceeds the assumed investment
rate. The dollar amount of the variable income payments stays level if the net
investment return equals the assumed investment rate. Please refer to the
Statement of Additional Information for more detailed information as to how we
determine variable income payments.
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FIXED INCOME PAYMENTS
We guarantee income payment amounts derived from any Fixed Account Option for
the duration of the Income Plan. We calculate the fixed income payments by:
1) deducting any applicable premium tax; and
2) applying the resulting amount to the greater of (a) the
appropriate value from the income payment table in your Contract
or (b) such other value as we are offering at that time.
We may defer making fixed income payments for a period of up to 6 months or
whatever shorter time state law may require. If we defer payments for 30 days
or more, we will pay interest as required by law from the date we receive the
withdrawal request to the date we make payment.
RETIREMENT INCOME GUARANTEE RIDERS
For owners up to and including age 75, you have the option to add to your
Contract one of two Retirement Income Guarantee Riders (RIDER 1 or RIDER 2).
Each Rider guarantees a minimum dollar amount (we call the "GUARANTEED INCOME
BENEFIT") to be applied to an Income Plan. You may elect this benefit up to
the your latest Payout Start Date. The Riders may not be available in all
states.
ELIGIBILITY. To qualify for this benefit, you must meet the following
conditions as of the Payout Start Date:
o You must elect a Payout Start Date that is on or after the 10th
anniversary of the date we issued the Rider (the "RIDER DATE");
o The Payout Start Date must occur during the 30 day period
following a Contract Anniversary;
o You must elect to receive fixed income payments; and
o The Income Plan you have selected must provide for payments
guaranteed for either a single life or joint lives with a
specified period of at least:
o 10 years, if the youngest Annuitant's age is 80 or less on
the date the amount is applied, or
o 5 years, if the youngest Annuitant's age is greater than 80
on the date the amount is applied.
RETIREMENT INCOME GUARANTEE RIDER 1. This Rider guarantees that the amount you
apply to an Income Plan will not be less than the total of your purchase
payments including any Credit Enhancements (Putnam Allstate Advisor Plus
Contracts only) less any withdrawals and any applicable taxes.
The current charge for this Rider, on an annual basis, is 0.05% multiplied by
the Income Base in effect on each Contract Anniversary. We deduct the fee only
from your assets in the Variable Sub-Account(s). In the case of a full
withdrawal of the Contract Value on any date other than the Contract
Anniversary, we will deduct from the amount paid upon withdrawal a Rider fee
equal to 0.05% multiplied by the Income Base immediately prior to the
withdrawal pro rated to reflect the number of days the Rider was in effect
during the current Contract Year.
We calculate the Income Base that we use to determine the value of the
guaranteed income benefit as follows:
1) On the Rider Date, the Income Base is equal to the Contract Value.
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2) After the Rider Date, we recalculate the Income Base when a
purchase payment or withdrawal is made as follows:
(a) For purchase payments, the Income Base is equal to the
most recently calculated Income Base plus the purchase
payment (and any Credit Enhancement in the case of Putnam
Allstate Advisor Plus Contracts).
(b) For withdrawals, the Income Base is equal to the most
recently calculated Income Base reduced by a withdrawal
adjustment, described below.
In the absence of any withdrawals or purchase payments, the Income Base will
be equal to the Contract Value as of the Rider Date.
The withdrawal adjustment is equal to (1) divided by (2), with the result
multiplied by (3), where:
1) = withdrawal amount,
2) = the Contract Value immediately prior to the withdrawal, and
3) = the most recently calculated Income Base.
See Appendix B for an example of how the withdrawal adjustment applies.
The guaranteed income benefit amount is determined by applying the Income
Base, less any applicable taxes, to the guaranteed rates for the Income Plan
that you select. On the Payout Start Date, the income payment will be the
greater of (i) the income payment produced by the guaranteed income benefit
and (ii) the income payment provided in the fixed amount income payment
provision of the Contract.
RETIREMENT INCOME GUARANTEE RIDER 2. This Rider guarantees that the amount you
apply to an Income Plan will not be less than the greater of Income Base A or
Income Base B described below.
The current annual charge for this Rider is 0.30% multiplied by the Income
Base in effect on each Contract Anniversary. We deduct the fee only from the
Variable Sub-Account(s). In the case of a full withdrawal of the Contract
Value on any date other than the Contract Anniversary, we will deduct from the
amount paid upon withdrawal a Rider fee equal to 0.30% multiplied by the
Income Base immediately prior to the withdrawal pro rated to reflect the
number of days the Rider was in effect during the current Contract Year.
The Income Base is the greater of Income Base A and Income Base B. We
determine each Income Base as follows:
INCOME BASE A. On the Rider Date, Income Base A is equal to the Contract
Value. After the Rider Date, we recalculate Income Base A as follows on the
Contract Anniversary and when a purchase payment or withdrawal is made:
1) For purchase payments, Income Base A is equal to the most recently
calculated Income Base plus the purchase payment (and any Credit
Enhancement in the case of Putnam Allstate Advisor Plus
Contracts).
2) For withdrawals, Income Base A is equal to the most recently
calculated Income Base reduced by a withdrawal adjustment.
3) On each Contract Anniversary, Income Base A is equal to the
greater of the Contract Value on that date or the most recently
calculated Income Base A.
In the absence of any withdrawals or purchase payments, Income Base A will be
equal to the greatest Contract Value as of the Rider Date and all Contract
Anniversary Contract Values between the Rider Date and the Payout Start Date.
We will recalculate Income Base A for purchase payments, for withdrawals and
on Contract Anniversaries until the first Contract Anniversary after the 85th
birthday of the oldest Contract Owner or, if no Contract Owner is a living
individual, the oldest Annuitant. After that date, we will recalculate Income
Base A for purchase payments and withdrawals.
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INCOME BASE B. On the Rider Date, Income Base B is equal to the Contract
Value. After the Rider Date, Income Base B, plus any subsequent purchase
payments (and any Credit Enhancement in the case of Putnam Allstate Advisor
Plus Contracts) and less a withdrawal adjustment for any subsequent
withdrawals, will accumulate daily at a rate equal to 6% per year until the
first day of the month following the oldest Contract Owner's or, if the
Contract Owner is not a living individual, the Annuitant's 85th birthday.
For purposes of computing Income Base A or B, the withdrawal adjustment is
equal to (1) divided by (2), with the result multiplied by (3), where:
1) = withdrawal amount,
2) = the Contract Value immediately prior to the withdrawal, and
3) = the most recently calculated Income Base.
See Appendix B for an example of how the withdrawal adjustment applies.
We determine the guaranteed income benefit amount by applying the Income Base,
less any applicable taxes, to the guaranteed rates for the Income Plan that
you select. On the Payout Start Date, the income payment will be the greater
of (i) the income payment provided by the guaranteed income benefit or (ii)
the income payment provided in the fixed amount income payment provision of
the Contract.
CERTAIN EMPLOYEE BENEFIT PLANS
The Contracts offered by this prospectus contain income payment tables that
provide for different payments to men and women of the same age, except in
states that require unisex tables. We reserve the right to use income payment
tables that do not distinguish on the basis of sex to the extent permitted by
applicable law. In certain employment-related situations, employers are
required by law to use the same income payment tables for men and women.
Accordingly, if the Contract is to be used in connection with an
employment-related retirement or benefit plan and we do not offer unisex
annuity tables in your state, you should consult with legal counsel as to
whether the purchase of a Contract is appropriate.
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DEATH BENEFITS
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We will pay a death benefit if, prior to the Payout Start Date:
1) any Contract Owner dies, or
2) the Annuitant dies.
We will pay the death benefit to the new Contract Owner as determined
immediately after the death. The new Contract Owner would be a surviving
Contract Owner or, if none, the Beneficiary. In the case of the death of the
Annuitant, we will pay the death benefit to the current Contract Owner.
DEATH BENEFIT AMOUNT
Prior to the Payout Start Date, the death benefit is equal to the greatest of
the following death benefit alternatives:
1) the Contract Value as of the date we determine the death benefit,
or
2) the sum of all purchase payments (and Credit Enhancements in the
case of Putnam Allstate Advisor Plus Contracts), less withdrawals,
or
3) the most recent MAXIMUM ANNIVERSARY VALUE prior to the date we
determine the death benefit (see "Maximum Anniversary Value"
below).
We will determine the value of the death benefit as of the end of the
Valuation Date on which we receive a complete request for payment of the death
benefit. If we receive a request after 3 p.m. Central Time on a Valuation
Date, we will process the request as of the end of the following Valuation
Date. A request for payment of the death benefit must include DUE PROOF OF
DEATH. We will accept the following documentation as "Due Proof of Death":
o a certified copy of a death certificate,
o a certified copy of a decree of a court of competent jurisdiction
as to the finding of death, or
o other documentation as we may accept in our sole discretion.
MAXIMUM ANNIVERSARY VALUE. On the Issue Date, the Maximum Anniversary Value is
equal to the initial purchase payment (including Credit Enhancement in the
case of Putnam Allstate Advisor Plus Contracts). After the Issue Date, we
recalculate the Maximum Anniversary Value when a purchase payment or
withdrawal is made or on a Contract Anniversary as follows:
1) For purchase payments, the Maximum Anniversary Value is equal to
the most recently calculated Maximum Anniversary Value plus the
purchase payment (including Credit Enhancement in the case of
Putnam Allstate Advisor Plus Contracts).
2) For withdrawals, the Maximum Anniversary Value is equal to the
most recently calculated Maximum Anniversary Value reduced by a
withdrawal adjustment, as defined below.
3) On each Contract Anniversary, the Maximum Anniversary Value is
equal to the greater of the Contract Value or the most recently
calculated Maximum Anniversary Value.
In the absence of any withdrawals or purchase payments, the Maximum
Anniversary Value will be the greatest of all anniversary Contract Values on
or prior to the date we calculate the death benefit.
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We will recalculate the Maximum Anniversary Value until the first Contract
Anniversary after the 80th birthday of the oldest Contract Owner or, if no
Contract Owner is a living individual, the Annuitant. After that date, we will
recalculate the Maximum Anniversary Value only for purchase payments and
withdrawals. The Maximum Anniversary Value will never be greater than the
maximum death benefit allowed by any applicable state non-forfeiture laws.
WITHDRAWAL ADJUSTMENT. The withdrawal adjustment is equal to (a) divided by
(b), with the result multiplied by (c), where:
(a) = the withdrawal amount,
(b) = the Contract Value immediately prior to the withdrawal, and
(c) = the value of the applicable death benefit alternative
immediately prior to the withdrawal.
See Appendix A for an example of a withdrawal adjustment.
ENHANCED BENEFICIARY PROTECTION OPTION
For Contract Owners up to and including age 75, the Enhanced Beneficiary
Protection Option is an optional benefit that you may elect. If you elect the
Option, the death benefit will be the greater of the death benefit
alternatives (1) through (3) listed above, or (4) the Enhanced Beneficiary
Protection Option. The Enhanced Beneficiary Protection Option may not be
available in all states.
We will issue a rider to your Contract if you elect the Option. The Enhanced
Beneficiary Protection Option on the date we issue the Contract rider ("RIDER
DATE") is equal to the Contract Value on that date. After the Rider Date, the
Enhanced Beneficiary Protection Option, plus any subsequent payments
(including Credit Enhancements in the case of Putnam Allstate Advisor Plus
Contracts) and less a withdrawal adjustment (computed as described above),
will accumulate daily at the rate of 5% per year until the earlier of:
1) the date we determine the death benefit, or
2) the first Contract Anniversary following the 80th birthday of the
oldest Contract Owner or, if no Contract Owner is a living
individual, the 80th birthday of the oldest Annuitant.
We will determine the death benefit under the Enhanced Beneficiary Protection
Option in the same manner as described under "Death Benefit Amount."
DEATH BENEFIT PAYMENTS
DEATH OF CONTRACT OWNER. Within 180 days of the date of your death, the new
Contract Owner may elect to:
1) receive the death benefit in a lump sum, or
2) apply an amount equal to the death benefit to one of the available
Income Plans described above. The Payout Start Date must be within
one year of the date of your death. Income payments must be:
(a) over the life of the new Contract Owner,
(b) for a guaranteed number of payments from 5 to 30 years but
not to exceed the life expectancy of the new Contract Owner,
or
(c) over the life of new Contract Owner with a guaranteed number
of payments from 5 to 30 years but not to exceed the life
expectancy of the new Contract Owner.
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Otherwise, the new Contract Owner will receive the SETTLEMENT VALUE. The
"Settlement Value" is the Contract Value, less any applicable withdrawal
charge, premium tax and, in the case of Putnam Allstate Advisor Contracts,
contract maintenance charge. The new Contract Owner may make a single
withdrawal of any amount within one year of the date of death without
incurring a withdrawal charge. We will calculate the Settlement Value as of
the end of the Valuation Date coinciding with the requested distribution date
for payment or on the mandatory distribution date of 5 years after the date of
your death, whichever is earlier. If we receive a request after 3 p.m. Central
Time on a Valuation Date, we will process the request as of the end of the
following Valuation Date. We are currently waiving the 180 day limit, but we
reserve the right to enforce the limitation in the future.
In any event, the entire value of the Contract must be distributed within 5
years after the date of death unless an Income Plan is elected or a surviving
spouse continues the Contract in accordance with the provisions described
below.
If the new Contract Owner is your spouse, then he or she may elect one of the
options listed above or may continue the Contract in the Accumulation Phase as
if the death had not occurred. On the date the Contract is continued, the
Contract Value will equal the amount of the death benefit as determined as of
the Valuation Date on which we received Due Proof of Death (the next Valuation
Date if we receive Due Proof of Death after 3 p.m. Central Time). The Contract
may only be continued once. If the surviving spouse continues the Contract in
the Accumulation Phase, the surviving spouse may make a single withdrawal of
any amount within 1 year of the date of death without incurring a withdrawal
charge. Prior to the Payout Start Date, the death benefit of the continued
Contract will be the greater of:
o the sum of all purchase payments (including Credit Enhancements in the
case of Putnam Allstate Advisor Plus Contracts) less any withdrawals; or
o the Contract Value on the date we determine the death benefit; or
o the Maximum Anniversary Value as defined in the "Death Benefit Amount"
section, with the following changes:
o "Issue Date" is replaced by the date the Contract is continued,
o "initial purchase payment" (`including Credit Enhancement' in the
case of Putnam Allstate Advisor Plus Contracts) is replaced with
the death benefit as described at the end of the Valuation Period
during which we received Due Proof of Death.
For Contracts with the optional Enhanced Beneficiary Protection Option:
o the Enhanced Beneficiary Protection value as defined in the Rider, with
the following changes:
o "Rider Date" is replaced by the date the Contract is continued,
o "Contract Value" is replaced with the death benefit as described
at the end of the Valuation Period during which we received Due
Proof of Death.
If the new Contract Owner is a corporation, trust, or other non-natural
person, then the new Contract Owner may elect, within 180 days of your death,
to receive the death benefit in a lump sum or may elect to receive the
Settlement Value in a lump sum within 5 years of death. We are currently
waiving the 180 day limit, but we reserve the right to enforce the limitation
in the future.
DEATH OF ANNUITANT. If the Annuitant who is not also the Contract Owner dies
prior to the Payout Start Date, the Contract Owner must elect one of the
applicable options described below.
If the Contract Owner is a natural person, the Contract Owner may elect to
continue the Contract as if the death had not occurred, or, if we receive Due
Proof of Death within 180 days of the date of the Annuitant's death, the
Contract Owner may choose to:
1) receive the death benefit in a lump sum; or
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2) apply the death benefit to an Income Plan that must begin within 1
year of the date of death.
If the Contract Owner elects to continue the Contract or to apply the death
benefit to an Income Plan, the new Annuitant will be the youngest Contract
Owner, unless the Contract Owner names a different Annuitant.
If the Contract Owner is a non-natural person, the non-natural Contract Owner
may elect, within 180 days of the Annuitant's date of death, to receive the
death benefit in a lump sum or may elect to receive the Settlement Value
payable in a lump sum within 5 years of the Annuitant's date of death. If the
non-natural Contract Owner does not make one of the above described elections,
the Settlement Value must be withdrawn by the non-natural Contract Owner on or
before the mandatory distribution date 5 years after the Annuitant's death. We
are currently waiving the 180 day limit, but we reserve the right to enforce
the limitation in the future.
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MORE INFORMATION
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ALLSTATE
Allstate is the issuer of the Contract. Allstate is an Illinois stock life
insurance company organized in 1957.
Allstate is licensed to operate in the District of Columbia, Puerto Rico, and
all states except New York. We intend to offer the Contract in those
jurisdictions in which we are licensed. Our home office is located at 3100
Sanders Road, Northbrook, Illinois, 60062.
Allstate is a wholly owned subsidiary of Allstate Insurance Company, a stock
property-liability insurance company incorporated under the laws of Illinois.
All of the outstanding capital stock of Allstate Insurance Company is owned by
The Allstate Corporation.
Several independent rating agencies regularly evaluate life insurers'
claims-paying ability, quality of investments, and overall stability. A.M.
Best Company assigns A+ (Superior) to Allstate. Standard & Poor's Insurance
Rating Services assigns an AA+ (Very Strong) financial strength rating and
Moody's assigns an Aa2 (Excellent) financial strength rating to Allstate.
These ratings do not reflect the investment performance of the Variable
Account. We may from time to time advertise these ratings in our sales
literature.
VARIABLE ACCOUNT
Allstate established the Allstate Life Insurance Company Separate Account A on
January 27, 1999. We have registered the Variable Account with the SEC as a
unit investment trust. The SEC does not supervise the management of the
Variable Account or Allstate.
We own the assets of the Variable Account. The Variable Account is a
segregated asset account under Illinois law. That means we account for the
Variable Account's income, gains and losses separately from the results of our
other operations. It also means that only the assets of the Variable Account
that are in excess of the reserves and other Contract liabilities with respect
to the Variable Account are subject to liabilities relating to our other
operations. Our obligations arising under the Contracts are general corporate
obligations of Allstate.
The Variable Account consists of 24 Variable Sub-Accounts, each of which
invests in a corresponding Fund. We may add new Variable Sub-Accounts or
eliminate one or more of them, if we believe marketing, tax, or investment
conditions so warrant. We do not guarantee the investment performance of the
Variable Account, its Sub-Accounts or the Funds. We may use the Variable
Account to fund our other annuity contracts. We will account separately for
each type of annuity contract funded by the Variable Account.
THE FUNDS
DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS. We automatically reinvest all
dividends and capital gains distributions from the Funds in shares of the
distributing Funds at their net asset value.
VOTING PRIVILEGES. As a general matter, you do not have a direct right to vote
the shares of the Funds held by the Variable Sub-Accounts to which you have
allocated your Contract Value. Under current law, however, you are entitled to
give us instructions on how to vote those shares on certain matters. Based on
our present view of the law, we will vote the shares of the Funds that we hold
directly or indirectly through the Variable Account in accordance with
instructions that we receive from Contract Owners entitled to give such
instructions.
As a general rule, before the Payout Start Date, the Contract Owner or anyone
with a voting interest is the person entitled to give voting instructions. The
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number of shares that a person has a right to instruct will be determined by
dividing the Contract Value allocated to the applicable Variable Sub-Account
by the net asset value per share of the corresponding Fund as of the record
date of the meeting. After the Payout Start Date the person receiving income
payments has the voting interest. The payee's number of votes will be
determined by dividing the reserve for such Contract allocated to the
applicable Sub-Account by the net asset value per share of the corresponding
Fund. The votes decrease as income payments are made and as the reserves for
the Contract decrease.
We will vote shares attributable to Contracts for which we have not received
instructions, as well as shares attributable to us, in the same proportion as
we vote shares for which we have received instructions, unless we determine
that we may vote such shares in our own discretion. We will apply voting
instructions to abstain on any item to be voted upon on a pro-rata basis to
reduce the votes eligible to be cast.
We reserve the right to vote Fund shares as we see fit without regard to
voting instructions to the extent permitted by law. If we disregard voting
instructions, we will include a summary of that action and our reasons for
that action in the next semi-annual financial report we send to you.
CHANGES IN FUNDS. If the shares of any of the Funds are no longer available
for investment by the Variable Account or if, in our judgment, further
investment in such shares is no longer desirable in view of the purposes of
the Contract, we may eliminate that Fund and substitute shares of another
eligible investment fund. Any substitution of securities will comply with the
requirements of the Investment Company Act of 1940. We also may add new
Variable Sub-Accounts that invest in additional mutual funds. We will notify
you in advance of any change.
CONFLICTS OF INTEREST. The Funds sell their shares to separate accounts
underlying both variable life insurance and variable annuity contracts. It is
conceivable that in the future it may be unfavorable for variable life
insurance separate accounts and variable annuity separate accounts to invest
in the same Fund. The board of directors of the Funds monitors for possible
conflicts among separate accounts buying shares of the Funds. Conflicts could
develop for a variety of reasons. For example, differences in treatment under
tax and other laws or the failure by a separate account to comply with such
laws could cause a conflict. To eliminate a conflict, the Funds' board of
directors may require a separate account to withdraw its participation in a
Fund. A Fund's net asset value could decrease if it had to sell investment
securities to pay redemption proceeds to a separate account withdrawing
because of a conflict.
THE CONTRACT
DISTRIBUTION. Allstate Life Financial Services Inc. ("ALFS"), located at 3100
Sanders Road, Northbrook, IL 60062-7154, will serve as principal underwriter
of the Contracts until May 1, 2000. ALFS is a wholly owned subsidiary of
Allstate. Beginning May 1, 2000, Allstate Distributors, L.L.C. ("Allstate
Distributors"), a broker-dealer jointly owned by Allstate and Putnam
Investments, will serve as principal underwriter of the Contracts. ALFS and
Allstate Distributors are each a registered broker dealer under the Securities
and Exchange Act of 1934, as amended, ("Exchange Act") and a member of the
National Association of Securities Dealers, Inc. Contracts are sold by
registered representatives of unaffiliated broker-dealers or bank employees
who are licensed insurance agents appointed by Allstate, either individually
or through an incorporated insurance agency and have entered into a selling
agreement with ALFS (until May 1, 2000) or Allstate Distributors (beginning
May 1, 2000) to sell the Contract.
We will pay commissions to broker-dealers who sell the Contracts. Commissions
paid may vary, but we estimate that the total commission paid on all Contract
sales will not exceed 6% of all purchase payments. From time to time, we may
pay or permit other promotional incentives, in cash or credit or other
compensation. The commission is intended to cover distribution expenses. In
some states, Contracts may be sold by representatives or employees of banks
that may be acting as broker-dealers without separate registration under the
Exchange Act, pursuant to legal and regulatory exceptions.
Allstate may pay Allstate Distributors a commission for distribution of the
Contracts. The underwriting agreement with Allstate Distributors provides that
we will reimburse Allstate Distributors for expenses incurred in distributing
the Contracts, including any liability to Contract Owners arising out of
services rendered or Contracts issued.
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For Putnam Allstate Advisor Contracts issued to employees of Allstate and
certain other eligible organizations, and in lieu of Allstate paying any
commissions on sales of those Contracts, the Contract Owner will receive a
credit of 6% of the amount of each purchase payment that will be applied to
each purchase payment. Allstate will allocate this credit in the same
allocation as your most recent instruction. If you exercise your Right to
Cancel your Contract as described in this prospectus, we will return to you
the amount you would have received had there been no credit. Unless we are
required by law to return your purchase payments, this amount also will
include any charges deducted that reduced your Contract Value prior to
cancellation, plus any investment gain on the credit. The credit may not be
available in all states. We do not consider the credit to be an "investment in
the contract" for income tax purposes.
ADMINISTRATION. We have primary responsibility for all administration of the
Contracts and the Variable Account.
We provide the following administrative services, among others:
o issuance of the Contracts;
o maintenance of Contract Owner records;
o Contract Owner services;
o calculation of unit values;
o maintenance of the Variable Account; and
o preparation of Contract Owner reports.
We will send you Contract statements and transaction confirmations at least
annually. You should notify us promptly in writing of any address change. You
should read your statements and confirmations carefully and verify their
accuracy. You should contact us promptly if you have a question about a
periodic statement. We will investigate all complaints and make any necessary
adjustments retroactively, but you must notify us of a potential error within
a reasonable time after the date of the questioned statement. If you wait too
long, we will make the adjustment as of the date that we receive notice of the
potential error.
We will also provide you with additional periodic and other reports,
information and prospectuses as may be required by federal securities laws.
QUALIFIED PLANS
If you use the Contract with a qualified plan, the plan may impose different
or additional conditions or limitations on withdrawals, waivers of withdrawal
charges, death benefits, Payout Start Dates, income payments, and other
Contract features. In addition, adverse tax consequences may result if
qualified plan limits on distributions and other conditions are not met.
Please consult your qualified plan administrator for more information.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate on
certain federal securities law matters. All matters of Illinois law pertaining
to the Contracts, including the validity of the Contracts and Allstate's right
to issue such Contracts under Illinois insurance law, have been passed upon by
Michael J. Velotta, General Counsel of Allstate.
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TAXES
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THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE.
ALLSTATE MAKES NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR
TRANSACTION INVOLVING A CONTRACT.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on your individual
circumstances. If you are concerned about any tax consequences with regard to
your individual circumstances, you should consult a competent tax adviser.
TAXATION OF ANNUITIES IN GENERAL
TAX DEFERRAL. Generally, you are not taxed on increases in the Contract Value
until a distribution occurs. This rule applies only where:
1) the owner is a natural person,
2) the investments of the Variable Account are "adequately diversified"
according to Treasury Department regulations, and
3) Allstate is considered the owner of the Variable Account assets for
federal income tax purposes.
NON-NATURAL OWNERS. As a general rule, annuity contracts owned by non-natural
persons such as corporations, trusts, or other entities are not treated as
annuity contracts for federal income tax purposes. The income on such
contracts is taxed as ordinary income received or accrued by the owner during
the taxable year. Please see the Statement of Additional Information for a
discussion of several exceptions to the general rule for contracts owned by
non-natural persons.
DIVERSIFICATION REQUIREMENTS. For a Contract to be treated as an annuity for
federal income tax purposes, the investments in the Variable Account must be
"adequately diversified" consistent with standards under Treasury Department
regulations. If the investments in the Variable Account are not adequately
diversified, the Contract will not be treated as an annuity contract for
federal income tax purposes. As a result, the income on the Contract will be
taxed as ordinary income received or accrued by the owner during the taxable
year. Although Allstate does not have control over the Funds or their
investments, we expect the Funds to meet the diversification requirements.
OWNERSHIP TREATMENT. The IRS has stated that you will be considered the owner
of Variable Account assets if you possess incidents of ownership in those
assets, such as the ability to exercise investment control over the assets. At
the time the diversification regulations were issued, the Treasury Department
announced that the regulations do not provide guidance concerning
circumstances in which investor control of the Variable Account investments
may cause an investor to be treated as the owner of the Variable Account. The
Treasury Department also stated that future guidance would be issued regarding
the extent that Owners could direct sub-account investments without being
treated as Owners of the underlying assets of the separate account.
Your rights under the Contract are different than those described by the IRS
in rulings in which it found that contract Owners were not Owners of separate
account assets. For example, you have the choice to allocate premiums and
Contract Values among more investment alternatives. Also, you may be able to
transfer among investment alternatives more frequently than in such rulings.
These differences could result in you being treated as the owner of the
Variable Account. If this occurs, income and gain from the Variable Account
assets would be includible in your gross income. Allstate does not know what
standards will be set forth in any regulations or rulings which the Treasury
Department may issue. It is possible that future standards announced by the
Treasury Department could adversely affect the tax treatment of your Contract.
We reserve the right to modify the Contract as necessary to attempt to prevent
you from being considered the federal tax owner of the assets of the Variable
Account. However, we make no guarantee that such modification to the Contract
will be successful.
TAXATION OF PARTIAL AND FULL WITHDRAWALS. If you make a partial withdrawal
under a non-Qualified Contract, amounts received are taxable to the extent the
Contract Value, without regard to surrender charges, exceeds the investment in
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the Contract. The investment in the Contract is the gross premium paid for the
contract minus any amounts previously received from the Contract if such
amounts were properly excluded from your gross income. If you make a partial
withdrawal under a Qualified Contract, the portion of the payment that bears
the same ratio to the total payment that the investment in the Contract (i.e.,
nondeductible IRA contributions, after tax contributions to qualified plans)
bears to the Contract Value, is excluded from your income. If you make a full
withdrawal under a non-Qualified Contract or a Qualified Contract, the amount
received will be taxable only to the extent it exceeds the investment in the
Contract.
"Nonqualified distributions" from Roth IRAs are treated as made from
contributions first and are included in gross income only to the extent that
distributions exceed contributions. "Qualified distributions" from Roth IRAs
are not included in gross income. "Qualified distributions" are any
distributions made more than five taxable years after the taxable year of the
first contribution to any Roth IRA and which are:
o made on or after the date the individual attains age 59 1/2,
o made to a beneficiary after the Contract Owner's death,
o attributable to the Contract Owner being disabled, or
o for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000).
If you transfer a non-Qualified Contract without full and adequate
consideration to a person other than your spouse (or to a former spouse
incident to a divorce), you will be taxed on the difference between the
Contract Value and the investment in the Contract at the time of transfer.
Except for certain Qualified Contracts, any amount you receive as a loan under
a Contract, and any assignment or pledge (or agreement to assign or pledge) of
the Contract Value is treated as a withdrawal of such amount or portion.
TAXATION OF ANNUITY PAYMENTS. Generally, the rule for income taxation of
annuity payments received from a nonqualified contract provides for the return
of your investment in the Contract in equal tax-free amounts over the payment
period. The balance of each payment received is taxable. For fixed annuity
payments, the amount excluded from income is determined by multiplying the
payment by the ratio of the investment in the Contract (adjusted for any
refund feature or period certain) to the total expected value of annuity
payments for the term of the Contract. If you elect variable annuity payments,
the amount excluded from taxable income is determined by dividing the
investment in the Contract by the total number of expected payments. The
annuity payments will be fully taxable after the total amount of the
investment in the Contract is excluded using these ratios. If you die, and
annuity payments cease before the total amount of the investment in the
Contract is recovered, the unrecovered amount will be allowed as a deduction
for your last taxable year.
TAXATION OF ANNUITY DEATH BENEFITS. Death of a Contract Owner, or death of the
Annuitant if the Contract is owned by a non-natural person, will cause a
distribution of death benefits from a Contract. Generally, such amounts are
included in income as follows:
1) if distributed in a lump sum, the amounts are taxed in the same
manner as a full withdrawal, or
2) if distributed under an Income Plan, the amounts are taxed in the
same manner as an income payment. Please see the Statement of
Additional Information for more detail on distribution at death
requirements.
PENALTY TAX ON PREMATURE DISTRIBUTIONS. A 10% penalty tax applies to the
taxable amount of any premature distribution from a non-Qualified Contract.
The penalty tax generally applies to any distribution made prior to the date
you attain age 59 1/2. However, no penalty tax is incurred on distributions:
1) made on or after the date the Contract Owner attains age 59 1/2,
2) made as a result of the Contract Owner's death or disability,
3) made in substantially equal periodic payments over the Contract
Owner's life or life expectancy,
4) made under an immediate annuity, or
5) attributable to investment in the Contract before August 14, 1982.
You should consult a competent tax advisor to determine if any other
exceptions to the penalty apply to your situation. Similar exceptions may
apply to distributions from Qualified Contracts.
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AGGREGATION OF ANNUITY CONTRACTS. All non-qualified deferred annuity contracts
issued by Allstate (or its affiliates) to the same Contract Owner during any
calendar year will be aggregated and treated as one annuity contract for
purposes of determining the taxable amount of a distribution.
TAX QUALIFIED CONTRACTS
Contracts may be used as investments with certain qualified plans such as:
o Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the
Code;
o Roth IRAs under Section 408A of the Code;
o Simplified Employee Pension Plans under Section 408(k) of the
Code;
o Savings Incentive Match Plans for Employees (SIMPLE) Plans under
Section 408(p) of the Code;
o Tax Sheltered Annuities under Section 403(b) of the Code;
o Corporate and Self Employed Pension and Profit Sharing Plans; and
o State and Local Government and Tax-Exempt Organization Deferred
Compensation Plans.
In the case of certain qualified plans, the terms of the plans may govern the
right to benefits, regardless of the terms of the Contract. The income on
qualified plan and IRA investments is tax deferred and variable annuities held
by such plans do not receive any additional tax deferral. You should review
the annuity features, including all benefits and expenses, prior to purchasing
a variable annuity in a qualified plan or IRA. Allstate reserves the right to
limit the availability of the Contract for use with any of the Qualified Plans
listed above.
RESTRICTIONS UNDER SECTION 403(B) PLANS. Section 403(b) of the Tax Code
provides tax-deferred retirement savings plans for employees of certain
non-profit and educational organizations. Under Section 403(b), any contract
used for a 403(b) plan must provide that distributions attributable to salary
reduction contributions made after 12/31/88, and all earnings on salary
reduction contributions, may be made only on or after the date the employee:
o attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
o on account of hardship (earnings on salary reduction contributions
may not be distributed on the account of hardship).
These limitations do not apply to withdrawals where Allstate is directed to
transfer some or all of the contract value to another 403(b) plan.
INCOME TAX WITHHOLDING
Allstate is required to withhold federal income tax at a rate of 20% on all
"eligible rollover distributions" unless you elect to make a "direct rollover"
of such amounts to an IRA or eligible retirement plan. Eligible rollover
distributions generally include all distributions from Qualified Contracts,
excluding IRAs, with the exception of:
(1) required minimum distributions, or
(2) a series of substantially equal periodic payments made over a
period of at least 10 years, or,
(3) over the life (joint lives) of the participant (and beneficiary).
Allstate may be required to withhold federal and state income taxes on any
distributions from non-Qualified Contracts or Qualified Contracts that are not
eligible rollover distributions, unless you notify us of your election to not
have taxes withheld.
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PERFORMANCE INFORMATION
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We may advertise the performance of the Variable Sub-Accounts, including yield
and total return information. Total return represents the change, over a
specified period of time, in the value of an investment in a Variable
Sub-Account after reinvesting all income distributions. Yield refers to the
income generated by an investment in a Variable Sub-Account over a specified
period. All performance advertisements will include, as applicable,
standardized yield and total return figures that reflect the deduction of
insurance charges and withdrawal charge, as well as contract maintenance
charge (in the case of Putnam Allstate Advisor Contracts), the Credit
Enhancement (in the case of the Putnam Allstate Advisor Plus Contracts), and
sales charge (in the case of Putnam Allstate Advisor Plus Contracts).
Performance advertisements also may include total return figures that reflect
the deduction of insurance charges, but not withdrawal charges. The deduction
of such charges would reduce the performance shown. In addition, performance
advertisements may include aggregate, average, year-by-year, or other types of
total return figures.
Performance information for periods prior to the inception date of the
Variable Sub-Accounts will be based on the historical performance of the
corresponding Funds for the periods beginning with the inception dates of the
Funds and adjusted to reflect current Contract expenses. You should not
interpret these figures to reflect actual historical performance of the
Variable Account.
We may include in advertising and sales materials tax deferred compounding
charts and other hypothetical illustrations that compare currently taxable and
tax deferred investment programs based on selected tax brackets. Our
advertisements also may compare the performance of our Variable Sub-Accounts
with: (a) certain unmanaged market indices, including but not limited to the
Dow Jones Industrial Average, the Standard & Poor's 500, and the Shearson
Lehman Bond Index; and/or (b) other management investment companies with
investment objectives similar to the underlying funds being compared. In
addition, our advertisements may include the performance ranking assigned by
various publications, including the Wall Street Journal, Forbes, Fortune,
Money, Barron's, Business Week, USA Today, and statistical services, including
Lipper Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End
Survey, the Variable Annuity Research Data Survey, and SEI.
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
<TABLE>
<S> <C>
PAGE
ADDITIONS, DELETIONS, OR SUBSTITUTIONS OF INVESTMENTS......................................
THE CONTRACT...............................................................................
PERFORMANCE INFORMATION....................................................................
CALCULATION OF ACCUMULATION UNIT VALUES....................................................
CALCULATION OF VARIABLE INCOME PAYMENTS....................................................
GENERAL MATTERS............................................................................
FEDERAL TAX MATTERS........................................................................
QUALIFIED PLANS............................................................................
EXPERTS....................................................................................
FINANCIAL STATEMENTS.......................................................................
APPENDIX A.................................................................................
APPENDIX B.................................................................................
APPENDIX C.................................................................................
APPENDIX D.................................................................................
</TABLE>
-----------------------------------------------
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFERING IN ANY JURISDICTION IN WHICH
SUCH OFFERING MAY NOT LAWFULLY BE MADE. WE DO NOT AUTHORIZE ANYONE TO PROVIDE
ANY INFORMATION OR REPRESENTATIONS REGARDING THE OFFERING DESCRIBED IN THIS
PROSPECTUS OTHER THAN AS CONTAINED IN THIS PROSPECTUS.
48
<PAGE>
APPENDIX A
WITHDRAWAL ADJUSTMENT EXAMPLE - DEATH BENEFITS*
ISSUE DATE: January 1, 2000
INITIAL PURCHASE PAYMENT: $50,000
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
DEATH BENEFIT AMOUNT
------------------------------------------------------------------
CONTRACT PURCHASE PAYMENT VALUE ENHANCED BENEFICIARY VALUE
TYPE BEGINNING VALUE ----------------------- MAXIMUM --------------------------
OF CONTRACT TRANSACTION AFTER ADVISOR, PLUS ANNIVERSARY ADVISOR, PLUS
DATE OCCURRENCE VALUE AMOUNT OCCURRENCE A AND L VALUE A AND L
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contract
1/1/01 Anniversary $55,000 $55,000 $50,000 $52,000 $55,000 $52,500 $54,600
Partial
7/1/01 Withdrawal $60,000 $15,000 $45,000 $35,000 $37,000 $41,250 $40,347 $41,961
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The Purchase Payment Value is reduced by the amount of the withdrawal. The
withdrawal adjustment reduces the Maximum Anniversary Value and Enhanced
Beneficiary Value by the same proportion as the Contract Value.
<TABLE>
<CAPTION>
ADVISOR, PLUS
A AND L
<S> <C> <C> <C>
PURCHASE PAYMENT VALUE DEATH BENEFIT
Partial Withdrawal Amount (w) $15,000 $15,000
Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $50,000 $52,000
Adjusted Death Benefit $35,000 $37,000
MAXIMUM ANNIVERSARY VALUE DEATH BENEFIT
Partial Withdrawal Amount (w) $15,000 $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000 $60,000
Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $55,000 $55,000
Withdrawal Adjustment [(w)/(a)]*(d) $13,750 $13,750
Adjusted Death Benefit $41,250 $41,250
ENHANCED BENEFICIARY PROTECTION VALUE DEATH BENEFIT
Partial Withdrawal Amount (w) $15,000 $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000 $60,000
Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $53,796 $55,948
(assumes half years worth of Interest)
Withdrawal Adjustment [(w)/(a)]*(d) $13,449 $13,987
Adjusted Death Benefit $40,347 $41,961
</TABLE>
The "Plus" product assumes a 4.0% Credit Enhancement is added to the initial
purchase payment
For purposes of illustrating the withdrawal adjustment calculation, the
example assumes the same Contract Values and Maximum Anniversary Value for all
four Contracts. However, actual performance will be affected by the different
fees and charges under each Contract.
A-1
<PAGE>
APPENDIX B
WITHDRAWAL ADJUSTMENT EXAMPLE - INCOME BENEFITS
ISSUE DATE: January 1, 2000
INITIAL PURCHASE PAYMENT: $50,000
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------------
DEATH BENEFIT AMOUNT
------------------------------------------------------------------
CONTRACT PURCHASE PAYMENT VALUE ENHANCED BENEFICIARY VALUE
TYPE BEGINNING VALUE ----------------------- MAXIMUM --------------------------
OF CONTRACT TRANSACTION AFTER ADVISOR, PLUS ANNIVERSARY ADVISOR, PLUS
DATE OCCURRENCE VALUE AMOUNT OCCURRENCE A AND L VALUE A AND L
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Contract
1/1/01 Anniversary $55,000 $55,000 $50,000 $52,000 $55,000 $53,000 $55,120
Partial
7/1/01 Withdrawal $60,000 $15,000 $45,000 $37,500 $39,000 $41,250 $40,925 $42,562
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
The withdrawal adjustment reduces the Purchase Payment Value, the Maximum
Anniversary Value and the 6% Roll-Up Value by the same proportion as the
Contract Value.
<TABLE>
<CAPTION>
ADVISOR, PLUS
A AND L
<S> <C> <C> <C>
PURCHASE PAYMENT VALUE INCOME BENEFIT
Partial Withdrawal Amount (w) $15,000 $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000 $60,000
Value of Income Benefit Amount Immediately Prior to Partial Withdrawal (i) $50,000 $52,000
Withdrawal Adjustment [(w)/(a)]*(i) $12,500 $13,000
Adjusted Income Benefit $37,500 $39,000
MAXIMUM ANNIVERSARY VALUE INCOME BENEFIT
Partial Withdrawal Amount (w) $15,000 $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000 $60,000
Value of Applicable Income Benefit Amount Immediately Prior to Partial Withdrawal (i) $55,000 $55,000
Withdrawal Adjustment [(w)/(a)]*(i) $13,750 $13,750
Adjusted Income Benefit $41,250 $41,250
6% ROLL-UP VALUE INCOME BENEFIT
Partial Withdrawal Amount (w) $15,000 $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000 $60,000
Value of Death Benefit Amount Immediately Prior to Partial Withdrawal (i) $54,567 $56,750
(assumes half years worth of interest)
Withdrawal Adjustment [(w)/(a)]*(i) $13,642 $14,187
Adjusted Death Benefit $40,925 $42,562
</TABLE>
The "Plus" product assumes a 4.0% Credit Enhancement is added to the initial
purchase payment
For purposes of illustrating the withdrawal adjustment calculation, the
example assumes the same Contract Values and Maximum Anniversary Value for all
four Contracts. However, actual performance will be affected by the different
fees and charges under each Contract.
B-1
<PAGE>
APPENDIX C
Accumulation Unit Values for the Putnam Allstate Advisor Contracts for the
period April 30, 1999 (date Contracts first offered) through December 31, 1999
are set out below:
ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR
EACH VARIABLE SUB-ACCOUNT*
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
With the Enhanced Beneficiary
SUB-ACCOUNTS Basic Policy** Protection Option***
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Asia Pacific Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Diversified Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
The George Putnam Fund of Boston
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Global Asset Allocation
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Global Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Growth and Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Health Sciences
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
High Yield
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
International Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
International Growth and Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
International New Opportunities
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
C-1
<PAGE>
Investors
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Money Market
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
New Opportunities
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
New Value
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
OTC & Emerging Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Research
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Small Cap Value
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Utilities Growth and Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Vista
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Voyager
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
<FN>
* No Accumulation Unit Values are shown for the Putnam VT American
Government Income and Growth Opportunities Sub-Accounts, because they
were offered as of February 4, 2000.
** The Accumulation Unit Values in this column reflect a mortality and
expense risk charge of 1.25%.
*** The Accumulation Unit Values in this column reflect a mortality and
expense risk charge of 1.40%.
</FN>
</TABLE>
C-2
<PAGE>
Accumulation Unit Values for the Putnam Allstate Advisor - A Contracts for the
period October __, 1999 (date Contracts first offered) through December 31,
1999 are set out below:
ACCUMULATION UNIT VALUES AND NUMBER OF ACCUMULATION UNITS OUTSTANDING FOR
EACH VARIABLE SUB-ACCOUNT*
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
With the Enhanced Beneficiary
SUB-ACCOUNTS Basic Policy** Protection Option***
-------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Asia Pacific Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Diversified Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
The George Putnam Fund of Boston
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Global Asset Allocation
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Global Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Growth and Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Health Sciences
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
High Yield
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
International Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
International Growth and Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
International New Opportunities
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
C-3
<PAGE>
Investors
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Money Market
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
New Opportunities
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
New Value
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
OTC & Emerging Growth
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Research
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Small Cap Value
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Utilities Growth and Income
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Vista
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
Voyager
Accumulation Unit Value, Beginning of Period
Accumulation Unit Value, End of Period
Number of Units Outstanding, End of Period
<FN>
* No Accumulation Unit Values are shown for the Putnam VT American
Government Income and Growth Opportunities Sub-Accounts, because they
were offered as of February 4, 2000.
** The Accumulation Unit Values in this column reflect a mortality and
expense risk charge of 0.80%.
*** The Accumulation Unit Values in this column reflect a mortality and
expense risk charge of 0.95%.
</FN>
</TABLE>
C-4
<PAGE>
THE PUTNAM ALLSTATE ADVISOR CONTRACTS
ALLSTATE LIFE INSURANCE COMPANY STATEMENT OF ADDITIONAL INFORMATION
3100 SANDERS ROAD DATED APRIL 28, 2000
NORTHBROOK, ILLINOIS 60062
1-800-390-1277
This Statement of Additional Information supplements the information in the
prospectus for each of the four versions of the Putnam Allstate Advisor
Variable Annuity Contract that we offer, namely, the Putnam Allstate Advisor,
the Putnam Allstate Advisor-A, the Putnam Allstate Advisor Plus, and the
Putnam Allstate Advisor L. For convenience, we use the terms "Contract" and
"Contracts" to refer generally to all four versions of the Putnam Allstate
Advisor, except as specifically noted. This Statement of Additional
Information is not a prospectus. You should read it with the prospectus dated
April 28, 2000 for each version of the Contract. You may obtain a prospectus
by calling or writing us at the address or telephone number listed above.
Your broker may not offer all four versions of the Contract. Some versions of
the Contract are not available in all states. This Statement of Additional
Information does not constitute an offer of those Contract versions in such
cases.
Except as otherwise noted, this Statement of Additional Information uses the
same defined terms as the prospectus for each version of the Putnam Allstate
Advisor Variable Annuity Contract that we offer.
<PAGE>
TABLE OF CONTENTS
DESCRIPTION PAGE
Additions, Deletions or Substitutions of Investments 3
The Contract 3
Performance Information 4
Calculation of Accumulation Unit Values 6
Calculation of Variable Income Payments 7
General Matters 7
Federal Tax Matters 8
Qualified Plans 8
Experts 10
Financial Statements F-1
Appendix A A-1
Appendix B B-1
Appendix C C-1
Appendix D D-1
2
<PAGE>
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
We may add, delete, or substitute the Fund shares held by any Variable
Sub-Account to the extent the law permits. We may substitute shares of any
Fund with those of another Fund of the same or different mutual fund if the
shares of the Fund are no longer available for investment, or if we believe
investment in any Fund would become inappropriate in view of the purposes of
the Variable Account.
We will not substitute shares attributable to a Contract Owner's interest in a
Variable Sub-Account until we have notified the Contract Owner of the change,
and until the Securities and Exchange Commission has approved the change, to
the extent such notification and approval are required by law. Nothing
contained in this Statement of Additional Information shall prevent the
Variable Account from purchasing other securities for other series or classes
of contracts, or from effecting a conversion between series or classes of
contracts on the basis of requests made by Contract Owners.
We also may establish additional Variable Sub-Accounts or series of Variable
Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a
new Fund of the same or different mutual fund. We may establish new Variable
Sub-Accounts when we believe marketing needs or investment conditions warrant.
We determine the basis on which we will offer any new Variable Sub-Accounts in
conjunction with the Contract to existing Contract Owners. We may eliminate
one or more Variable Sub-Accounts if, in our sole discretion, marketing, tax
or investment conditions so warrant.
We may, by appropriate endorsement, change the Contract as we believe
necessary or appropriate to reflect any substitution or change in the Funds.
If we believe the best interests of persons having voting rights under the
Contracts would be served, we may operate the Variable Account as a management
company under the Investment Company Act of 1940 or we may withdraw its
registration under such Act if such registration is no longer required.
THE CONTRACT
The Contract is primarily designed to aid individuals in long-term financial
planning. You can use it for retirement planning regardless of whether the
retirement plan qualifies for special federal income tax treatment.
PURCHASE OF CONTRACTS
We offer the Contracts to the public through banks as well as brokers licensed
under the federal securities laws and state insurance laws. Allstate Life
Financial Services, Inc., ("ALFS"), an affiliate of Allstate, will serve as
the principal underwriter for the Variable Account and distribute the
Contracts until May 1, 2000. Beginning May 1, 2000, Allstate Distributors,
L.L.C. ("Allstate Distributors"), a broker-dealer jointly owned by Allstate
and Putnam Investments, will serve as the principal underwriter for the
Variable Account and distribute the Contracts. The offering of the Contracts
is continuous. We do not anticipate discontinuing the offering of the
Contracts, but we reserve the right to do so at any time.
3
<PAGE>
TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS)
We accept purchase payments that are the proceeds of a Contract in a
transaction qualifying for a tax-free exchange under Section 1035 of the
Internal Revenue Code ("Code"). Except as required by federal law in
calculating the basis of the Contract, we do not differentiate between Section
1035 purchase payments and non-Section 1035 purchase payments.
We also accept "rollovers" and transfers from Contracts qualifying as
tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts
("IRAs"), or any other Qualified Contract that is eligible to "rollover" into
an IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other
Qualified Contracts to the extent necessary to comply with federal tax laws.
For example, we restrict the assignment, transfer, or pledge of TSAs and IRAs
so the Contracts will continue to qualify for special tax treatment. A
Contract Owner contemplating any such exchange, rollover or transfer of a
Contract should contact a competent tax adviser with respect to the potential
effects of such a transaction.
PERFORMANCE INFORMATION
From time to time we may advertise the "standardized," "non-standardized," and
"adjusted historical" total returns of the Variable Sub-Accounts, as described
below. Please remember that past performance is not an estimate or guarantee
of future performance and does not necessarily represent the actual experience
of amounts invested by a particular Contract Owner.
STANDARDIZED TOTAL RETURNS
A Variable Sub-Account's standardized total return represents the average
annual total return of that Sub-Account over a particular period. We compute
standardized total return by finding the annual percentage rate that, when
compounded annually, will accumulate a hypothetical $1,000 purchase payment to
the redeemable value at the end of the one, five or ten year period, or for a
period from the date of commencement of the Variable Sub-Account's operations,
if shorter than any of the foregoing. We use the following formula prescribed
by the SEC for computing standardized total return:
1000(1 + T)n = ERV
where:
T = average annual total return
ERV = ending redeemable value of a hypothetical $1,000 payment (plus $40
credit thereon for Putnam Allstate Advisor Plus Contracts only)
made at the beginning of 1, 5, or 10 year periods or shorter
period
n = number of years in the period
1000 = hypothetical $1,000 investment (plus $40 credit thereon for Putnam
Allstate Advisor Plus Contracts only)
4
<PAGE>
When factoring in the withdrawal charge assessed upon redemption, we exclude
the Free Withdrawal Amount (the Free Withdrawal Amount is not applicable with
the Putnam Allstate Advisor A and Putnam Allstate Advisor L Contracts), which
is the amount you can withdraw from the Contract without paying a withdrawal
charge. We also use the withdrawal charge that would apply upon redemption at
the end of each period. Thus, for example, when factoring in the withdrawal
charge for a one year standardized total return calculation, we would use the
withdrawal charge that applies to a withdrawal of a purchase payment made one
year prior. For Putnam Allstate Advisor A Contracts, we also assume that the
maximum sales charge of 5.75% is deducted from the initial $1,000 payment.
When factoring the contract maintenance charge (only applicable to the Putnam
Allstate Advisor Contract), we pro rate the charge by dividing (a) the
contract maintenance charge by (b) an assumed contract size of $45,000. We
then multiply the resulting percentage by a hypothetical $1,000 investment.
The standardized total returns for the Variable Sub-Accounts, for the periods
ended December 31, 1999, for each version of the Contract are set out in
Appendices A through D to this Statement of Additional Information. The Putnam
Allstate Advisor - A, Putnam Allstate Advisor Plus and Putnam Allstate Advisor
- - L Contracts were first offered to the public on October 25, 1999, February
4, 2000 and as of the date of this Statement of Additional Information,
respectively. Accordingly, performance shown for periods prior to those dates
reflects the performance of the Variable Sub-Accounts, adjusted to reflect the
current charges under the Contracts that would have applied had they been in
existence at the time.
NON-STANDARDIZED TOTAL RETURNS
From time to time, we also may quote rates of return that reflect changes in
the values of each Variable Sub-Account's accumulation units. We may quote
these "non-standardized total returns" on an annualized, cumulative,
year-by-year, or other basis. These rates of return take into account
asset-based charges, such as the mortality and expense risk charge and
administration charge. However, these rates of return do not reflect
withdrawal charges (not applicable to Putnam Allstate Advisor A Contracts) and
any taxes. Such charges, if reflected, would reduce the performance shown.
Non-standardized total returns will not take into account the amount of any
applicable Credit Enhancement under the Putnam Allstate Advisor Plus
Contracts.
Annualized returns reflect the rate of return that, when compounded annually,
would equal the cumulative rate of return for the period shown. We compute
annualized returns according to the following formula:
Annualized Return = (1 + r)1/n -1
Where:
r = cumulative rate of return for the period shown,
and:
n = number of years in the period.
The method of computing annualized rates of return is similar to that for
computing standardized performance, described above, except that rather than
using a hypothetical $1,000 investment and the ending redeemable value
thereof, we use the changes in value of an accumulation unit.
Cumulative rates of return reflect the cumulative change in value of an
accumulation unit over the period shown. Year-by-year rates of return reflect
the change in value of an accumulation unit during the course of each year
shown. We compute these returns by dividing the accumulation unit value at the
end of each period shown, by the accumulation unit value at the beginning of
5
<PAGE>
that period, and subtracting one. We compute other total returns on a similar
basis.
We may quote non-standardized total returns for 1, 3, 5 and 10 year periods,
or period since inception of the Variable Sub-Account's operations, as well as
other periods, such as "year-to-date" (prior calendar year end to the day
stated in the advertisement); "year to most recent quarter" (prior calendar
year end to the end of the most recent quarter); the prior calendar year; and
the "n" most recent calendar years.
The non-standardized annualized total returns for the Variable Sub-Accounts,
for the period ended December 31, 1999, for each of the four versions of the
Contract are set out in Appendices A through D to this Statement of Additional
Information. The Putnam Allstate Advisor - A, Putnam Allstate Advisor Plus and
Putnam Allstate Advisor - L Contracts were first offered to the public on
October 25, 1999, February 4, 2000 and as of the date of this Statement of
Additional Information, respectively. Accordingly, performance shown for
periods prior to those dates reflects the performance of the Variable
Sub-Accounts, adjusted to reflect the current charges under the Contracts that
would have applied had they been in existence at the time.
ADJUSTED HISTORICAL TOTAL RETURNS
We may advertise the total return for periods prior to the date that the
Variable Sub-Accounts commenced operations. We will calculate such "adjusted
historical total returns" using the performance of the underlying Funds and
adjusting such performance to reflect the current level of charges that apply
to the Variable Sub-Accounts under each version of the Contract.
The adjusted historical total returns for the Variable Sub-Accounts, for the
periods ended December 31, 1999, for each version of the Contract are set out
in the Appendices A through D to this Statement of Additional Information.
CALCULATION OF ACCUMULATION UNIT VALUES
The value of Accumulation Units will change each Valuation Period according to
the investment performance of the Fund shares purchased by each Variable
Sub-Account and the deduction of certain expenses and charges. A "Valuation
Period" is the period from the end of one Valuation Date and continues to the
end of the next Valuation Date. A Valuation Date ends at the close of regular
trading on the New York Stock Exchange (currently 3:00 p.m. Central Time).
The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period
equals the Accumulation Unit Value as of the immediately preceding Valuation
Period, multiplied by the Net Investment Factor (described below) for that
Sub-Account for the current Valuation Period.
NET INVESTMENT FACTOR
The Net Investment Factor for a Valuation Period is a number representing the
change, since the last Valuation Period, in the value of Variable Sub-Account
assets per Accumulation Unit due to investment income, realized or unrealized
capital gain or loss, deductions for taxes, if any, and deductions for the
mortality and expense risk charge and administrative expense charge. We
determine the Net Investment Factor for each Variable Sub-Account for any
6
<PAGE>
Valuation Period by dividing (A) by (B) and subtracting (C) from the result,
where:
(A) is the sum of:
(1) the net asset value per share of the Fund underlying the
Variable Sub-Account determined at the end of the current
Valuation Period; plus,
(2) the per share amount of any dividend or capital gain
distributions made by the Fund underlying the Variable Sub-Account
during the current Valuation Period;
(B) is the net asset value per share of the Fund underlying the Variable
Sub-Account determined as of the end of the immediately preceding
Valuation Period; and
(C) is the mortality and expense risk charge corresponding to the
portion of the current calendar year that is in the current Valuation
Period.
CALCULATION OF VARIABLE INCOME PAYMENTS
We calculate the amount of the first variable income payment under an Income
Plan by applying the Contract Value allocated to each Variable Sub-Account
less any applicable premium tax charge deducted at the time, to the income
payment tables in the Contract. We divide the amount of the first variable
annuity income payment by the Variable Sub-Account's then current Annuity Unit
value to determine the number of annuity units ("Annuity Units") upon which
later income payments will be based. To determine income payments after the
first, we simply multiply the number of Annuity Units determined in this
manner for each Variable Sub-Account by the then current Annuity Unit value
("Annuity Unit Value") for that Variable Sub-Account.
CALCULATION OF ANNUITY UNIT VALUES
Annuity Units in each Variable Sub-Account are valued separately and Annuity
Unit Values will depend upon the investment experience of the particular Fund
in which the Variable Sub-Account invests. We calculate the Annuity Unit Value
for each Variable Sub-Account at the end of any Valuation Period by:
- - multiplying the Annuity Unit Value at the end of the immediately
preceding Valuation Period by the Variable Sub-Account's Net Investment
Factor (described in the preceding section) for the Period; and then
- - dividing the product by the sum of 1.0 plus the assumed investment rate
for the Valuation Period.
The assumed investment rate adjusts for the interest rate assumed in the
income payment tables used to determine the dollar amount of the first
variable income payment, and is at an effective annual rate which is disclosed
in the Contract.
We determine the amount of the first variable income payment paid under an
Income Plan using the income payment tables set out in the Contracts. The
Contracts include tables that differentiate on the basis of sex, except in
states that require the use of unisex tables.
7
<PAGE>
GENERAL MATTERS
INCONTESTABILITY
We will not contest the Contract after we issue it.
SETTLEMENTS
The Contract must be returned to us prior to any settlement. We must receive
due proof of the Contract Owner(s) death (or Annuitant's death if there is a
non-natural Contract Owner) before we will settle a death claim.
SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS
We hold title to the assets of the Variable Account. We keep the assets
physically segregated and separate and apart from our general corporate
assets. We maintain records of all purchases and redemptions of the Fund
shares held by each of the Variable Sub-Accounts.
The Funds do not issue stock certificates. Therefore, we hold the Variable
Account's assets in open account in lieu of stock certificates. See the Funds'
prospectuses for a more complete description of the custodian of the Funds.
PREMIUM TAXES
Applicable premium tax rates depend on the Contract Owner's state of residency
and the insurance laws and our status in those states where premium taxes are
incurred. Premium tax rates may be changed by legislation, administrative
interpretations, or judicial acts.
TAX RESERVES
We do not establish capital gains tax reserves for any Variable Sub-Account
nor do we deduct charges for tax reserves because we believe that capital
gains attributable to the Variable Account will not be taxable. However, we
reserve the right to deduct charges to establish tax reserves for potential
taxes on realized or unrealized capital gains.
FEDERAL TAX MATTERS
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE
NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION
INVOLVING A CONTRACT.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on the individual circumstances
of each person. If you are concerned about any tax consequences with regard to
your individual circumstances, you should consult a competent tax adviser.
8
<PAGE>
TAXATION OF ALLSTATE LIFE INSURANCE COMPANY
Allstate is taxed as a life insurance company under Part I of Subchapter L of
the Internal Revenue Code. Since the Variable Account is not an entity
separate from Allstate, and its operations form a part of Allstate, it will
not be taxed separately as a "Regulated Investment Company" under Subchapter M
of the Code. Investment income and realized capital gains of the Variable
Account are automatically applied to increase reserves under the Contract.
Under existing federal income tax law, Allstate believes that the Variable
Account investment income and capital gains will not be taxed to the extent
that such income and gains are applied to increase the reserves under the
Contract. Accordingly, Allstate does not anticipate that it will incur any
federal income tax liability attributable to the Variable Account, and
therefore Allstate does not intend to make provisions for any such taxes. If
Allstate is taxed on investment income or capital gains of the Variable
Account, then Allstate may impose a charge against the Variable Account in
order to make provision for such taxes.
EXCEPTIONS TO THE NON-NATURAL OWNER RULE
There are several exceptions to the general rule that annuity contracts held
by a non-natural owner are not treated as annuity contracts for federal income
tax purposes. Contracts will generally be treated as held by a natural person
if the nominal owner is a trust or other entity which holds the Contract as
agent for a natural person. However, this special exception will not apply in
the case of an employer who is the nominal owner of an annuity contract under
a non-qualified deferred compensation arrangement for its employees. Other
exceptions to the non-natural owner rule are: (1) Contracts acquired by an
estate of a decedent by reason of the death of the decedent; (2) certain
Qualified Contracts; (3) Contracts purchased by employers upon the termination
of certain qualified plans; (4) certain Contracts used in connection with
structured settlement agreements, and (5) Contracts purchased with a single
premium when the annuity starting date is no later than a year from purchase
of the annuity and substantially equal periodic payments are made, not less
frequently than annually, during the annuity period.
IRS REQUIRED DISTRIBUTION AT DEATH RULES
In order to be considered an annuity contract for federal income tax purposes,
the Contract must provide: (1) if any Contract Owner dies on or after the
Payout Start Date but before the entire interest in the Contract has been
distributed, the remaining portion of such interest must be distributed at
least as rapidly as under the method of distribution being used as of the date
of the Owner's death; (2) if any Contract Owner dies prior to the Payout Start
Date, the entire interest in the Contract will be distributed within 5 years
after the date of the Owner's death. These requirements are satisfied if any
portion of the Contract Owner's interest that is payable to (or for the
benefit of) a designated Beneficiary is distributed over the life of such
Beneficiary (or over a period not extending beyond the life expectancy of the
Beneficiary) and the distributions begin within 1 year of the Owner's death.
If the Contract Owner's designated Beneficiary is the surviving spouse of the
Owner, the Contract may be continued with the surviving spouse as the new
Contract Owner. If the Contract Owner is a non-natural person, then the
Annuitant will be treated as the Contract Owner for purposes of applying the
distribution at death rules. In addition, a change in the Annuitant on a
Contract owned by a non-natural person will be treated as the death of the
Contract Owner.
9
<PAGE>
QUALIFIED PLANS
The Contract may be used with several types of qualified plans. Allstate
reserves the right to limit the availability of the Contract for use with any
of the Qualified Plans listed below. The tax rules applicable to participants
in such qualified plans vary according to the type of plan and the terms and
conditions of the plan itself. Adverse tax consequences may result from excess
contributions, premature distributions, distributions that do not conform to
specified commencement and minimum distribution rules, excess distributions
and in other circumstances. Contract Owners and participants under the plan
and Annuitants and Beneficiaries under the Contract may be subject to the
terms and conditions of the plan regardless of the terms of the Contract.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity (IRA).
Individual Retirement Annuities are subject to limitations on the amount that
can be contributed and on the time when distributions may commence. Certain
distributions from other types of qualified plans may be "rolled over" on a
tax-deferred basis into an Individual Retirement Annuity. An IRA generally may
not provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid and the Contract's Cash Value. The Contract
provides a death benefit that in certain circumstances may exceed the greater
of the payments and the Contract Value. It is possible that the death benefit
could be viewed as violating the prohibition on investment in life insurance
contracts with the result that the Contract would not be viewed as satisfying
the requirements of an IRA.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after
the taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2, made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases
are subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature
distributions. Subject to certain limitations, a traditional Individual
Retirement Account or Annuity may be converted or "rolled over" to a Roth
Individual Retirement Annuity. The taxable portion of a conversion or rollover
distribution is includible in gross income, but is exempted from the 10%
penalty tax on premature distributions.
SIMPLIFIED EMPLOYEE PENSION PLANS
Section 408(k) of the Code allows employers to establish simplified employee
pension plans for their employees using the employees' individual retirement
annuities if certain criteria are met. Under these plans the employer may,
within specified limits, make deductible contributions on behalf of the
10
<PAGE>
employees to their individual retirement annuities. Employers intending to use
the Contract in connection with such plans should seek competent advice.
SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS)
Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer
employees to establish SIMPLE retirement plans for their employees. SIMPLE
plans may be structured as a SIMPLE retirement account using an employee's IRA
to hold the assets or as a Section 401(k) qualified cash or deferred
arrangement. In general, a SIMPLE plan consists of a salary deferral program
for eligible employees and matching or nonelective contributions made by
employers. Employers intending to use the Contract in conjunction with SIMPLE
plans should seek competent tax and legal advice.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code permits public school employees and employees of
certain types of tax-exempt organizations (specified in Section 501(c)(3) of
the Code) to have their employers purchase annuity contracts for them, and
subject to certain limitations, to exclude the purchase payments from the
employees' gross income. An annuity contract used for a Section 403(b) plan
must provide that distributions attributable to salary reduction contributions
made after 12/31/88, and all earnings on salary reduction contributions, may
be made only on or after the date the employee attains age 59 1/2, separates
from service, dies, becomes disabled or on the account of hardship (earnings
on salary reduction contributions may not be distributed for hardship). These
limitations do not apply to withdrawals where Allstate is directed to transfer
some or all of the Contract Value to another 403(b) plan.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to establish
various types of tax favored retirement plans for employees. The Self-Employed
Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R.
10" or "Keogh") permits self-employed individuals to establish tax favored
retirement plans for themselves and their employees. Such retirement plans may
permit the purchase of annuity contracts in order to provide benefits under
the plans.
STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION DEFERRED COMPENSATION
PLANS
Section 457 of the Code permits employees of state and local governments and
tax-exempt organizations to defer a portion of their compensation without
paying current taxes. The employees must be participants in an eligible
deferred compensation plan. To the extent the Contracts are used in connection
with an eligible plan, employees are considered general creditors of the
employer and the employer as owner of the Contract has the sole right to the
proceeds of the Contract. Generally, under the non-natural owner rules, such
Contracts are not treated as annuity contracts for federal income tax
purposes. Under these plans, contributions made for the benefit of the
employees will not be includible in the employees' gross income until
distributed from the plan. However, under a Section 457 plan all the
compensation deferred under the plan must remain solely the property of the
employer, subject only to the claims of the employer's general creditors,
until such time as made available to the employee or a beneficiary.
11
<PAGE>
EXPERTS
The financial statements and the related financial statement schedule included
in this Statement of Additional Information have been audited by
_______________, independent auditors, as stated in their reports appearing
herein, and are included in reliance upon the reports of such firm given upon
their authority as experts in accounting and auditing.
FINANCIAL STATEMENTS
The financial statements of Allstate and the Variable Account and the
accompanying Report's of Independent Auditors' appear on the pages that
follow. The financial statements of Allstate included herein should be
considered only as bearing upon the ability of Allstate to meet its
obligations under the Contracts.
[FINANCIAL STATEMENTS TO BE FILED BY AMENDMENT]
12
<PAGE>
APPENDIX A
PUTNAM ALLSTATE ADVISOR CONTRACT
STANDARDIZED TOTAL RETURNS
Set out below are the standardized total returns for each Variable Sub-Account
(other than the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts) since its inception through December 31,
1999. All of the Variable Sub-Accounts commenced operations on April 30, 1999
except for the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts, which commenced operations on February 4,
2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
13
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
14
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
15
<PAGE>
NON-STANDARDIZED TOTAL RETURNS
Set out below are the non-standardized total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since its inception through
December 31, 1999. All of the Variable Sub-Accounts commenced operations on
April 30, 1999 except for the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts, which commenced operations on
February 4, 2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
16
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
17
<PAGE>
With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
18
<PAGE>
ADJUSTED HISTORICAL TOTAL RETURNS
Set out below are the adjusted historical total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since the Fund's inception through
December 31, 1999.
(Without the Enhanced Beneficiary Protection Option or a Retirement Income
Guarantee Rider)
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
* Each of the above Funds (Class IB shares) corresponding to the Variable
Sub-Accounts commenced operations on April 30, 1998, except for the Putnam VT
Diversified Income, Growth and Income, and International Growth Funds, which
commenced operations on April 6, 1998, the Putnam VT Research Fund, which
commenced operations September 30, 1998, the Putnam VT Small Cap Value Fund,
which commenced operations April 30, 1999, and the Putnam VT American
Government Fund and Putnam VT Growth Opportunities Fund, which commenced
operations on January 31, 2000. For periods prior to the inception dates of
the Funds (Class IB shares), the performance shown is based on the historical
performance of the Funds (Class IA shares), adjusted to reflect the current
expenses of the Funds (Class IB shares). The inception dates for the Funds
(Class IA shares) are as follows:
Global Asset Allocation, Growth and Income, Income, High Yield, Money Market,
and Voyager commenced operations on February 1, 1988; Global Growth commenced
operations on May 1, 1990; Utilities Growth and Income commenced operations on
May 1, 1992; Diversified Income commenced operations on September 15, 1993;
New Opportunities commenced operations on May 2, 1994; Asia Pacific Growth
commenced operations on May 1, 1995; International Growth, International
Growth and Income, International New Opportunities, New Value and Vista
commenced operations on January 2, 1997; The George Putnam Fund of Boston,
Health Sciences, Investors and OTC & Emerging Growth commenced operations on
April 30, 1998.
19
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option and Retirement Income Guarantee
Rider 2 as if those features had been available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares, adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the preceding table.
20
<PAGE>
(With the Enhanced Beneficiary Protection Option)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option as if that feature had been
available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the first table above.
21
<PAGE>
(With Retirement Income Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for Retirement Income Guarantee Rider 2 as if that feature had been available
throughout the periods shown. For purposes of computing the Rider fee, we
assumed that Income Base B applied, that there were no additional purchase
payments or withdrawals, and that the Contract Issue Date coincided with the
inception date of the Fund (Class IA shares).
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares, the performance shown is based on the historical performance of the
Funds (Class IA shares), adjusted to reflect the current expenses of the Funds
(Class IB shares). The inception dates for the Funds (Class IA shares) are
shown on the first note to the first table above.
22
<PAGE>
APPENDIX B
PUTNAM ALLSTATE ADVISOR - A CONTRACT
Putnam Allstate Advisor - A Contracts were first offered to the public on
October 25, 1999. Accordingly, performance shown for periods prior to that
date reflects the performance of the Variable Sub-Accounts, adjusted to
reflect the current charges under the Contracts that would have applied had
they been in existence at the time.
STANDARDIZED TOTAL RETURNS
Set out below are the standardized total returns for each Variable Sub-Account
(other than the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts) since its inception through December 31,
1999. All of the Variable Sub-Accounts commenced operations on April 30, 1999
except for the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts, which commenced operations on February 4,
2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
23
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
24
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
25
<PAGE>
NON-STANDARDIZED TOTAL RETURNS
Set out below are the non-standardized total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since its inception through
December 31, 1999. All of the Variable Sub-Accounts commenced operations on
April 30, 1999 except for the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts, which commenced operations on
February 4, 2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
26
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
27
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
28
<PAGE>
ADJUSTED HISTORICAL TOTAL RETURNS
Set out below are the adjusted historical total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since the Fund's inception through
December 31, 1999.
(Without the Enhanced Beneficiary Protection Option or a Retirement Income
Guarantee Rider)
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
* Each of the above Funds (Class IB shares) corresponding to the Variable
Sub-Accounts commenced operations on April 30, 1998, except for the Putnam VT
Diversified Income, Growth and Income, and International Growth Funds, which
commenced operations on April 6, 1998, the Putnam VT Research Fund, which
commenced operations September 30, 1998, the Putnam VT Small Cap Value Fund,
which commenced operations April 30, 1999, and the Putnam VT American
Government Fund and Putnam VT Growth Opportunities Fund, which commenced
operations on January 31, 2000. For periods prior to the inception dates of
the Funds (Class IB shares), the performance shown is based on the historical
performance of the Funds (Class IA shares), adjusted to reflect the current
expenses of the Funds (Class IB shares). The inception dates for the Funds
(Class IA shares) are as follows:
Global Asset Allocation, Growth and Income, Income, High Yield, Money Market,
and Voyager commenced operations on February 1, 1988; Global Growth commenced
operations on May 1, 1990; Utilities Growth and Income commenced operations on
May 1, 1992; Diversified Income commenced operations on September 15, 1993;
New Opportunities commenced operations on May 2, 1994; Asia Pacific Growth
commenced operations on May 1, 1995; International Growth, International
Growth and Income, International New Opportunities, New Value and Vista
commenced operations on January 2, 1997; The George Putnam Fund of Boston,
Health Sciences, Investors and OTC & Emerging Growth commenced operations on
April 30, 1998.
29
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option and Retirement Income Guarantee
Rider 2 as if those features had been available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares, the performance shown is based on the historical performance of the
Funds (Class IA shares), adjusted to reflect the current expenses of the Funds
(Class IB shares). The inception dates for the Funds (Class IA shares are
shown on the first note to the preceding table.
30
<PAGE>
(With the Enhanced Beneficiary Protection Option)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option as if that feature had been
available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares, the performance shown is based on the historical performance of the
Funds (Class IA shares, adjusted to reflect the current expenses of the Funds
(Class IB shares). The inception dates for the Funds (Class IA shares) are
shown on the first note to the first table above.
31
<PAGE>
(With Retirement Income Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for Retirement Income Guarantee Rider 2 as if that feature had been available
throughout the periods shown. For purposes of computing the Rider fee, we
assumed that Income Base B applied, that there were no additional purchase
payments or withdrawals, and that the Contract Issue Date coincided with the
inception date of the Fund (Class IA shares).
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares
are shown on the first note to the first table above.
32
<PAGE>
APPENDIX C
PUTNAM ALLSTATE ADVISOR PLUS CONTRACT
Putnam Allstate Advisor Plus Contracts were first offered to the public on
February 4, 2000. Accordingly, performance shown for periods prior to that
date reflects the performance of the Variable Sub-Accounts, adjusted to
reflect the current charges under the Contracts that would have applied had
they been in existence at the time.
STANDARDIZED TOTAL RETURNS
Set out below are the standardized total returns for each Variable Sub-Account
(other than the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts) since its inception through December 31,
1999. All of the Variable Sub-Accounts commenced operations on April 30, 1999
except for the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts, which commenced operations on February 4,
2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
33
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
- ---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
34
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
35
<PAGE>
NON-STANDARDIZED TOTAL RETURNS
Set out below are the non-standardized total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since its inception through
December 31, 1999. All of the Variable Sub-Accounts commenced operations on
April 30, 1999 except for the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts, which commenced operations on
February 4, 2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
36
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
37
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
38
<PAGE>
ADJUSTED HISTORICAL TOTAL RETURNS
Set out below are the adjusted historical total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since the Fund's inception through
December 31, 1999.
(Without the Enhanced Beneficiary Protection Option or a Retirement Income
Guarantee Rider)
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
* Each of the above Funds (Class IB shares) corresponding to the Variable
Sub-Accounts commenced operations on April 30, 1998, except for the Putnam VT
Diversified Income, Growth and Income, and International Growth Funds, which
commenced operations on April 6, 1998, the Putnam VT Research Fund, which
commenced operations September 30, 1998, the Putnam VT Small Cap Value Fund,
which commenced operations April 30, 1999, and the Putnam VT American
Government Fund and Putnam VT Growth Opportunities Fund, which commenced
operations on January 31, 2000. For periods prior to the inception dates of
the Funds (Class IB shares, the performance shown is based on the historical
performance of the Funds (Class IA shares), adjusted to reflect the current
expenses of the Funds (Class IB shares). The inception dates for the Funds
(Class IA shares) are as follows:
Global Asset Allocation, Growth and Income, Income, High Yield, Money Market,
and Voyager commenced operations on February 1, 1988; Global Growth commenced
operations on May 1, 1990; Utilities Growth and Income commenced operations on
May 1, 1992; Diversified Income commenced operations on September 15, 1993;
New Opportunities commenced operations on May 2, 1994; Asia Pacific Growth
commenced operations on May 1, 1995; International Growth, International
Growth and Income, International New Opportunities, New Value and Vista
commenced operations on January 2, 1997; The George Putnam Fund of Boston,
Health Sciences, Investors and OTC & Emerging Growth commenced operations on
April 30, 1998.
39
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option and Retirement Income Guarantee
Rider 2 as if those features had been available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the preceding table.
40
<PAGE>
(With the Enhanced Beneficiary Protection Option)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option as if that feature had been
available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the first table above.
41
<PAGE>
(With Retirement Income Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for Retirement Income Guarantee Rider 2 as if that feature had been available
throughout the periods shown. For purposes of computing the Rider fee, we
assumed that Income Base B applied, that there were no additional purchase
payments or withdrawals, and that the Contract Issue Date coincided with the
inception date of the Fund (Class IA shares).
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares, the performance shown is based on the historical performance of the
Funds (Class IA shares), adjusted to reflect the current expenses of the Funds
(Class IB shares). The inception dates for the Funds (Class IA shares) are
shown on the first note to the first table above.
42
<PAGE>
APPENDIX D
PUTNAM ALLSTATE ADVISOR LEVEL LOAD CONTRACT
Putnam Allstate Advisor - L Contracts were first offered to the public as of
the date of this Statement of Additional Information. Accordingly, performance
shown for periods prior to that date reflects the performance of the Variable
Sub-Accounts, adjusted to reflect the current charges under the Contracts that
would have applied had they been in existence at the time.
STANDARDIZED TOTAL RETURNS
Set out below are the standardized total returns for each Variable Sub-Account
(other than the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts) since its inception through December 31,
1999. All of the Variable Sub-Accounts commenced operations on April 30, 1999
except for the Putnam American Government Income and Putnam Growth
Opportunities Variable Sub-Accounts, which commenced operations on February 4,
2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
43
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
44
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
45
<PAGE>
NON-STANDARDIZED TOTAL RETURNS
Set out below are the non-standardized total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since its inception through
December 31, 1999. All of the Variable Sub-Accounts commenced operations on
April 30, 1999 except for the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts, which commenced operations on
February 4, 2000.
(Without the Enhanced Beneficiary Protection Option or Retirement Income
Guarantee Rider)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
46
<PAGE>
(With the Enhanced Beneficiary Protection Option)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
(With Retirement Income Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
47
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)
Since Inception
of
Variable Sub-Account Sub-Account
-----------------------------------------------------------
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
---------------
48
<PAGE>
ADJUSTED HISTORICAL TOTAL RETURNS
Set out below are the adjusted historical total returns for each Variable
Sub-Account (other than the Putnam American Government Income and Putnam
Growth Opportunities Variable Sub-Accounts) since the Fund's inception through
December 31, 1999.
(Without the Enhanced Beneficiary Protection Option or a Retirement Income
Guarantee Rider)
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
* Each of the above Funds (Class IB shares) corresponding to the Variable
Sub-Accounts commenced operations on April 30, 1998, except for the Putnam VT
Diversified Income, Growth and Income, and International Growth Funds, which
commenced operations on April 6, 1998, the Putnam VT Research Fund, which
commenced operations September 30, 1998, the Putnam VT Small Cap Value Fund,
which commenced operations April 30, 1999, and the Putnam VT American
Government Fund and Putnam VT Growth Opportunities Fund, which commenced
operations on January 31, 2000. For periods prior to the inception dates of
the Funds (Class IB shares, the performance shown is based on the historical
performance of the Funds (Class IA shares), adjusted to reflect the current
expenses of the Funds (Class IB shares). The inception dates for the Funds
(Class IA shares) are as follows:
Global Asset Allocation, Growth and Income, Income, High Yield, Money Market,
and Voyager commenced operations on February 1, 1988; Global Growth commenced
operations on May 1, 1990; Utilities Growth and Income commenced operations on
May 1, 1992; Diversified Income commenced operations on September 15, 1993;
New Opportunities commenced operations on May 2, 1994; Asia Pacific Growth
commenced operations on May 1, 1995; International Growth, International
Growth and Income, International New Opportunities, New Value and Vista
commenced operations on January 2, 1997; The George Putnam Fund of Boston,
Health Sciences, Investors and OTC & Emerging Growth commenced operations on
April 30, 1998.
49
<PAGE>
(With the Enhanced Beneficiary Protection Option and Retirement Income
Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option and Retirement Income Guarantee
Rider 2 as if those features had been available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the preceding table.
50
<PAGE>
(With the Enhanced Beneficiary Protection Option)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for the Enhanced Beneficiary Protection Option as if that feature had been
available throughout the periods shown.
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the first table above.
51
<PAGE>
(With Retirement Income Guarantee Rider 2)*
<TABLE>
<CAPTION>
Ten Years
or Since
Variable Sub-Account One Year Five Years Inception of Fund*
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
Putnam American Government Income
Putnam Asia Pacific Growth
Putnam Diversified Income
The George Putnam Fund
Putnam Global Asset Allocation
Putnam Global Growth
Putnam Growth and Income
Putnam Growth Opportunities
Putnam Health Sciences
Putnam High Yield
Putnam Income
Putnam International Growth
Putnam International Growth and Income
Putnam International New Opportunities
Putnam Investors
Putnam Money Market
Putnam New Opportunities
Putnam New Value
Putnam OTC & Emerging Growth
Putnam Research
Putnam Small Cap Value
Putnam Utilities Growth and Income
Putnam Vista
Putnam Voyager
--------------
</TABLE>
*Performance figures have been adjusted to reflect the current charge
for Retirement Income Guarantee Rider 2 as if that feature had been available
throughout the periods shown. For purposes of computing the Rider fee, we
assumed that Income Base B applied, that there were no additional purchase
payments or withdrawals, and that the Contract Issue Date coincided with the
inception date of the Fund (Class IA shares).
** The inception dates for the Funds appear in the first footnote to the
preceding table. For periods prior to the inception dates of the Funds (Class
IB shares), the performance shown is based on the historical performance of
the Funds (Class IA shares), adjusted to reflect the current expenses of the
Funds (Class IB shares). The inception dates for the Funds (Class IA shares)
are shown on the first note to the first table above.
52
<PAGE>
PART C
OTHER INFORMATION
24A. FINANCIAL STATEMENTS
Allstate and Variable Account Financial Statements to be filed by amendment
24B. EXHIBITS
The following exhibits, correspond to those required by paragraph (b)
of item 24 as to exhibits in Form N-4:
(1) Resolution of the Board of Directors of Allstate Life Insurance Company
authorizing establishment of the Allstate Life Insurance Company
Separate Account A*
(2) Not Applicable
(3) (a) Underwriting Agreement (Allstate Life Financial Services, Inc.)**
(b) Underwriting Agreement (Allstate Distributors)****
(4) Form of Putnam Allstate Advisor - L Contract
(5) Form of Putnam Allstate Advisor - L application for a Contract
(6) (a) Articles of Incorporation of Allstate Life Insurance Company*
(b) By-laws of Allstate Life Insurance Company*
(7) Not applicable
(8) Form of Participation Agreement**
(9) Opinion of Michael J. Velotta, Vice President, Secretary and General
Counsel of Allstate Life Insurance Company****
(10) (a) Independent Auditors' Consent****
(b) Consent of Attorneys
(11) Not applicable
(12) Not applicable
(13) Performance Data Calculations****
(14) Not applicable
(99) Powers of Attorney*, ***
-----------
* Incorporated herein by reference to the initial filing, dated February
9, 1999, of Registrant's Form N-4 registration statement (File No.
333-72017).
** Incorporated herein by reference to Pre-Effective Amendment No. 1, dated
April 16, 1999, to Registrant's Form N-4 registration statement (File
No. 333-72017).
<PAGE>
*** Incorporated herein by reference to Post-Effective Amendment No. 1,
dated August 31, 1999, to Registrant's Form N-4 registration statement
(File No. 333-72017).
**** To be filed by amendment.
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITION AND OFFICE WITH
BUSINESS ADDRESS DEPOSITOR OF THE ACCOUNT
<S> <C>
Thomas J. Wilson, II Chairman of the Board, Chief Executive Officer
Michael J. Velotta Director, Senior Vice President, Secretary and General Counsel
Marla G. Friedman Director and Senior Vice President
John L. Carl Director
Richard I. Cohen Director
T. O'Neal Douglas Director
Margaret G. Dyer Director and Senior Vice President
Edward M. Liddy Director
John C. Lounds Director and Senior Vice President
Robert W. Pike Director
Kevin R. Slawin Director and Senior Vice President
Casey J. Sylla Director and Chief Investment Officer
Charles F. Thalheimer Director and Vice President
B. Eugene Wraith Director and Vice President
John R. Hunter Vice President
Karen C. Gardner Vice President
Patricia A. Coffey Vice President
Moses Hardie Vice President
Mary J. McGinn Vice President and Assistant Secretary
Leonard G. Sherman Vice President
Steven C. Verney Vice President
James P. Zils Treasurer
Samuel H. Pilch Controller
C. Nelson Strom Assistant Vice President and Corporate Actuary
Patricia W. Wilson Assistant Vice President, Assistant Secretary and Assistant Treasurer
Denis Bailey Assistant Vice President
Richard L. Baker Vice President
Lisa Cochrane Assistant Vice President
D. Steven Boger Assistant Vice President
Lawrence W. Dahl Assistant Vice President
Sarah R. Donahue Assistant Vice President
Thomas W. Evans Assistant Vice President
Douglas F. Gaer Assistant Vice President
Brent H. Hamann Assistant Vice President
Ronald A. Johnson Assistant Vice President
Robert L. Park Assistant Vice President
Barry S. Paul Assistant Vice President and Assistant Treasurer
Robert E. Rich Assistant Vice President
Linda L. Shumilas Assistant Vice President
Robert E. Transon Assistant Vice President
Timothy N. Vander Pas Assistant Vice President
G. Craig Whitehead Assistant Vice President
Richard Zaharias Assistant Vice President
<PAGE>
Laura R. Zimmerman Assistant Vice President
Joanne M. Derrig Assistant Secretary, Assistant General Counsel and
Chief Compliance Officer
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
</TABLE>
The principal business address of the foregoing officers and directors is 3100
Sanders Road, Northbrook, Illinois 60062.
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
Information in response to this item is incorporated by reference to the Form
10-K Annual Report of The Allstate Corporation (File #1-11840).
27. NUMBER OF CONTRACT OWNERS
As of the date of this Registration Statement, the offering of the Putnam
Allstate Advisor - L Variable Annuity had not commenced.
28. INDEMNIFICATION
The by-laws of Allstate Life Insurance Company ("Allstate Life," "Depositor,"
or the "Company") provide for the indemnification of its directors, officers
and controlling persons, against expenses, judgments, fines and amounts paid
in settlement as incurred by such person, if such person acted properly. No
indemnification shall be made in respect of any claim, issue or matter as to
which such person shall have been adjudged to be liable for negligence or
misconduct in the performance of a duty to the Company, unless a court
determines such person is entitled to such indemnity.
Insofar as indemnification for liability arising out of the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than payment by the registrant of expenses
incurred by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities
being registered, the registrant will, unless in the opinion of is counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in the Act and will be governed by the
final adjudication of such issue.
29A. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES
Allstate Life Financial Services, Inc. also acts as a principal underwriter to
the following investment companies:
Glenbrook Life and Annuity Company Separate Account A
Glenbrook Life Multi-Manager Variable Account
Glenbrook Life and Annuity Company Variable Annuity Account
Glenbrook Life Variable Life Separate Account B
Allstate Life of New York Separate Account A
Glenbrook Life AIM Variable Life Separate Account A
Glenbrook Life Scudder Variable Account (A)
Glenbrook Life Variable Life Separate Account A
Allstate Life Insurance Company Separate Account A
<PAGE>
29B. PRINCIPAL UNDERWRITER
<TABLE>
<CAPTION>
Name and Principal Business Positions and Offices
Address of Each Such Person with Underwriter
--------------------------- ----------------------
<S> <C>
Thomas J. Wilson, II Director
Kevin R. Slawin Director
Michael J. Velotta Director and Secretary
John R. Hunter Director, President and Chief Executive Officer
Janet M. Albers Vice President and Controller
Brent H. Hamann Vice President
Andrea J. Schur Vice President
Terry R. Young General Counsel and Assistant Secretary
James P. Zils Treasurer
Lisa A. Burnell Assistant Vice President and Compliance Officer
Joanne M. Derrig Assistant Secretary and Assistant General Counsel
Emma M. Kalaidjian Assistant Secretary
Barry S. Paul Assistant Treasurer
</TABLE>
The principal address of the principal underwriter of the Variable Account
(Allstate Life Financial Services, Inc. until May 1, 2000, Allstate
Distributors, L.L.C. beginning May 1, 2000), is 3100 Sanders Road, Northbrook,
Illinois.
29C. COMPENSATION OF PRINCIPAL UNDERWRITER
None.
30. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Allstate Life Insurance Company, is located at 3100 Sanders
Road, Northbrook, Illinois 60062. THE PRINCIPAL UNDERWRITER OF THE VARIABLE
ACCOUNT IS LOCATED AT 3100 SANDERS ROAD, NORTHBROOK, ILLINOIS 60062. Each
company maintains those accounts and records required to be maintained
pursuant to Section 31(a) of the Investment Company Act and the rules
promulgated thereunder.
31. MANAGEMENT SERVICES
None.
32. UNDERTAKINGS
Registrant promises to file a post-effective amendment to the Registration
Statement as frequently as is necessary to ensure that the audited financial
statements in the Registration Statement are never more than 16 months old for
so long as payments under the variable annuity contracts may be accepted.
Registrant furthermore agrees to include either as part of any application to
purchase a contract offered by the prospectus, a space that an applicant can
check to request a Statement of Additional Information, or a post card
toll-free number included in the Prospectus that the applicant can use to
request for a Statement of Additional Information. Finally, Registrant agrees
to deliver any Statement of Additional Information and any financial
statements required to be made available under this Form N-4 promptly upon
written or oral request.
<PAGE>
33. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE
The Company represents that it is relying upon the letter, dated November 28,
1988, from the Commission staff to the American Council of Life Insurance and
that it intends to comply with the provisions of paragraphs 1-4 of that
letter.
34. REPRESENTATION REGARDING CONTRACT EXPENSES
Allstate Life represents that the fees and charges deducted under the
Contracts described in the prospectus included in this Registration Statement
(as amended or supplemented), in the aggregate, are reasonable in relation to
the services rendered, the expenses expected to be incurred, and the risks
assumed by Allstate Life.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, Registrant, Allstate Life Insurance Company Separate Account A, has
caused this Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, and its seal to be hereunto affixed
and attested, all in the Township of Northfield, State of Illinois, on the
28th day of February, 2000.
ALLSTATE LIFE INSURANCE COMPANY
SEPARATE ACCOUNT A
(REGISTRANT)
BY: ALLSTATE LIFE INSURANCE COMPANY
(DEPOSITOR)
(SEAL)
By: /s/MICHAEL J. VELOTTA
---------------------
Michael J. Velotta
Senior Vice President, Secretary and
General Counsel
As required by the Securities Act of 1933, this Registration Statement has
been duly signed below by the following Directors and Officers of Allstate
Life Insurance Company on the 28th day of February, 2000.
*/THOMAS J. WILSON, II Chairman of the Board and Chief Executive Officer
---------------------- (Principal Executive Officer)
Thomas J. Wilson, II
/s/MICHAEL J. VELOTTA Senior Vice President, Secretary, General
--------------------- Counsel and Director
Michael J. Velotta
*/KEVIN R. SLAWIN Senior Vice President and Director
----------------- (Principal Financial Officer)
Kevin R. Slawin
*/CASEY J. SYLLA Chief Investment Officer and Director
----------------
Casey J. Sylla
*/SAMUEL H. PILCH Controller
--------------------- (Principal Accounting Officer)
Samuel H. Pilch
*/MARLA G. FRIEDMAN Senior Vice President and Director
-------------------
Marla G. Friedman
*/JOHN C. LOUNDS Senior Vice President and Director
-----------------
John C. Lounds
*/ By Michael J. Velotta, pursuant to Powers of Attorney previously filed.
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. EXHIBIT
(4) Form of Putnam Allstate Advisor - L Contract
(5) Form of Putnam Allstate Advisor - L Application
(10) (b) Consent of Freedman, Levy, Kroll & Simonds
EXHIBIT 4
ALLSTATE LIFE
INSURANCE COMPANY
A Stock Company
Home Office: Allstate Plaza, Northbrook, Illinois 60062-7154
-----------------------------------------------------------------------------
FLEXIBLE PREMIUM DEFERRED VARIABLE ANNUITY CONTRACT
This Contract is issued to the owner in consideration of the initial purchase
payment. Allstate Life Insurance Company will pay the benefits of this
Contract, subject to its terms and conditions.
Throughout this Contract, "you" and "your" refer to the Contract owner(s).
"We", "us" and "our" refer to Allstate Life Insurance Company.
CONTRACT SUMMARY
This flexible premium deferred variable annuity provides a cash withdrawal
benefit and a death benefit during the Accumulation Phase and periodic income
payments beginning on the Payout Start Date during the Payout Phase.
THE DOLLAR AMOUNT OF INCOME PAYMENTS OR OTHER VALUES PROVIDED BY THIS
CONTRACT, WHEN BASED ON THE INVESTMENT EXPERIENCE OF THE VARIABLE ACCOUNT,
WILL VARY TO REFLECT THE PERFORMANCE OF THE VARIABLE ACCOUNT AND ARE NOT
GUARANTEED AS TO DOLLAR AMOUNT.
This Contract does not pay dividends.
The tax status of this Contract as it applies to the owner should be reviewed
each year.
PLEASE READ YOUR CONTRACT CAREFULLY.
THIS IS A LEGAL CONTRACT BETWEEN THE CONTRACT OWNER AND ALLSTATE LIFE
INSURANCE COMPANY.
RETURN PRIVILEGE
IF YOU ARE NOT SATISFIED WITH THIS CONTRACT FOR ANY REASON, YOU MAY RETURN IT
TO US OR OUR AGENT WITHIN 20 DAYS AFTER YOU RECEIVE IT. WE WILL REFUND ANY
PURCHASE PAYMENTS ALLOCATED TO THE VARIABLE ACCOUNT, ADJUSTED TO REFLECT
INVESTMENT GAIN OR LOSS FROM THE DATE OF ALLOCATION TO THE DATE OF
CANCELLATION, PLUS ANY PURCHASE PAYMENTS ALLOCATED TO THE FIXED ACCOUNT
OPTIONS. (WHERE REQUIRED BY STATE LAW, WE WILL REFUND ANY PURCHASE PAYMENTS.)
IF THIS CONTRACT IS QUALIFIED UNDER SECTION 408 OF THE INTERNAL REVENUE CODE,
WE WILL REFUND THE GREATER OF ANY PURCHASE PAYMENTS OR THE CONTRACT VALUE.
If you have any questions about your Allstate Life variable annuity, please
contact Allstate Life at (800) 390-1277.
------------------- --------------------
Secretary Chairman and Chief Executive Officer
Page 1
<PAGE>
-----------------------------------------------------------------------------
TABLE OF CONTENTS
-----------------------------------------------------------------------------
THE PERSONS INVOLVED....................................................... 3
ACCUMULATION PHASE......................................................... 3
PAYOUT PHASE............................................................... 10
INCOME PAYMENT TABLES...................................................... 12
GENERAL PROVISIONS......................................................... 13
Page 2
<PAGE>
-----------------------------------------------------------------------------
THE PERSONS INVOLVED
-----------------------------------------------------------------------------
OWNER The person named at the time of application is the Owner of this
Contract unless subsequently changed. As Owner, you will receive any periodic
income payments, unless you have directed us to pay them to someone else.
You may exercise all rights stated in this Contract, subject to the rights of
any irrevocable Beneficiary.
You may change the Owner or Beneficiary at any time. You may name a new
Annuitant only upon the death of the current Annuitant. You may restrict
income payments to Beneficiaries. Once we have received a satisfactory written
request for a change of Owner or Beneficiary, or restricted payments to any
Beneficiary, the change will take effect as of the date you signed it. We are
not liable for any payment we make or other action we take before receiving
any written request for a change from you. You may not assign an interest in
this Contract as collateral or security for a loan.
If the sole surviving Owner dies prior to the Payout Start Date, the
Beneficiary becomes the new Owner. If the sole surviving Owner dies after the
Payout Start Date, the Beneficiary becomes the new Owner and will receive any
subsequent guaranteed income payments.
If more than one person is designated as Owner:
1. Owner as used in this Contract refers to all persons named as Owners,
unless otherwise indicated;
2. any request to exercise ownership rights must be signed by all Owners;
and
3. on the death of any person who is an Owner, the surviving person(s)
named as Owner will continue as Owner.
ANNUITANT The Annuitant is the person named on the Annuity Data Page. The
Annuitant must be a living individual.
BENEFICIARY The Beneficiary is the person(s) named on the Annuity Data Page,
but may be changed by the Owner, as described above. We will determine the
Beneficiary from the most recent written request we have received from you. If
you do not name a Beneficiary or if the Beneficiary named is no longer living,
the Beneficiary will be:
1. your spouse if living; otherwise
2. your children equally if living; otherwise
3. your estate.
The Beneficiary may become the Owner under the circumstances described in the
Owner provision above.
-----------------------------------------------------------------------------
ACCUMULATION PHASE
-----------------------------------------------------------------------------
ACCUMULATION PHASE DEFINED The "Accumulation Phase" is the first of two phases
during your Contract. The Accumulation Phase begins on the issue date of the
Contract stated on the Annuity Data Page. This phase will continue until the
Payout Start Date unless the Contract is terminated before that date.
CONTRACT YEAR "Contract Year" is the one year period beginning on the issue
date of the Contract and on each anniversary of the issue date.
INVESTMENT ALTERNATIVES The "Investment Alternatives" are the subaccounts of
the Variable Account and the Fixed Account Options. We reserve the right to
Page 3
<PAGE>
limit the availability of the Investment Alternatives for new investments.
PURCHASE PAYMENTS The initial payment is shown on the Annuity Data Page. You
may make subsequent purchase payments during the Accumulation Phase. We may
limit the amount of each purchase payment that we will accept to a minimum of
$500 and a maximum of $1,000,000.
We will invest the purchase payments in the Investment Alternatives you
select. You may allocate any portion of your purchase payment in whole
percents from 0% to 100% or in exact dollar amounts to any of the Investment
Alternatives. The total allocation must equal 100%.
The allocation of the initial purchase payment is shown on the Annuity Data
Page. Allocation of each subsequent purchase payment will be the same as the
allocation for the most recent purchase payment unless you change the
allocation. You may change the allocation of subsequent purchase payments at
any time, without charge, simply by giving us written notice. Any change will
be effective at the time we receive the notice.
VARIABLE ACCOUNT The "Variable Account" for this Contract is the Allstate Life
Insurance Company Separate Account A. This account is a separate investment
account to which we allocate assets contributed under this and certain other
contracts. These assets will not be charged with liabilities arising from any
other business we may have.
VARIABLE SUBACCOUNTS The Variable Account is divided into subaccounts. Each
subaccount invests solely in the shares of the mutual fund underlying that
subaccount.
FIXED ACCOUNT OPTIONS The Fixed Account Option is the Standard Fixed Account.
STANDARD FIXED ACCOUNT Money in the Standard Fixed Account will earn interest
at the current rate in effect at the time of allocation or transfer to the
Standard Fixed Account for the guarantee period. We will offer a one year
guarantee period. Other guarantee periods will be offered at our discretion.
Subsequent renewal dates will be on anniversaries of the first renewal date.
After the initial guarantee period, a renewal rate will be declared.
CREDITING INTEREST We credit interest daily to money allocated to the Fixed
Account Option at a rate which compounds over one year to the interest rate we
guaranteed when the money was allocated. We will credit interest to the
initial purchase payment allocated to the Fixed Account Option from the issue
date. We will credit interest to subsequent purchase payments allocated to the
Fixed Account Option from the date we receive them at a rate declared by us.
We will credit interest to transfers to the Standard Fixed Account from the
date the transfer is made. The interest rate for the Fixed Account Option will
never be less than the minimum guaranteed rate shown on the Annuity Data Page.
TRANSFERS Prior to the Payout Start Date, you may transfer amounts among
Investment Alternatives. You may make 12 transfers per Contract Year without
charge. Each transfer after the 12th transfer in any Contract Year may be
assessed a transfer fee of .50% of the amount transferred. Transfers are
subject to the following restrictions:
1. The maximum amount transferable from the Standard Fixed Account during
any Contract Year is the greater of 30% of the Standard Fixed Account
balance as of the last Contract Anniversary or the greatest of any prior
transfer from the Standard Fixed Account. This limitation does not apply
to dollar cost averaging. However, if any interest rate is renewed at a
rate at least one percentage point less than the previous rate, the
Contract Owner may elect to transfer up to 100% of the Funds receiving
that reduced rate within 60 days of the notification of the interest
rate decrease. The Company reserves the right to defer transfers from
the Standard Fixed Account for up to six months from the date of
request.
2. The minimum amount that may be transferred from the Standard Fixed
Account or a Subaccount of the Variable Account is $100; if the total
amount remaining in the Standard Fixed Account or the Subaccount of the
Variable Account after a transfer would be less than $100, the entire
amount may also be transferred.
Page 4
<PAGE>
3. We reserve the right to limit the number of transfers in any Contract
Year or to refuse any transfer request for an Owner or certain Owners
if, in our sole discretion, we believe that:
a. excessive trading by such Owner or Owners or a specific transfer
request or group of transfer requests may have a detrimental
effect on Unit Values or the share prices of the underlying mutual
funds or would be to the disadvantage of other Contract Owners; or
b. we are informed by one or more of the underlying mutual funds that
the purchase or redemption of shares is to be restricted because
of excessive trading or a specific transfer or group of transfers
is deemed to have a detrimental effect on share prices of affected
underlying mutual funds.
Such restrictions may be applied in any manner which is reasonably
designed to prevent any use of the transfer right which is considered by
us to be to the disadvantage of the other Contract Owners.
We reserve the right to waive the transfer restrictions contained in this
Contract.
CONTRACT VALUE On the issue date of the Contract, the "Contract Value" is
equal to the initial purchase payment. After the issue date, the "Contract
Value" is equal to the sum of:
1. the number of Accumulation Units you hold in each subaccount of the
Variable Account multiplied by the Accumulation Unit Value for that
subaccount on the most recent Valuation Date; plus
2. the total value you have in the Fixed Account Option.
If you withdraw the entire Contract Value, you may receive an amount less than
the Contract Value because a Withdrawal Charge, income tax withholding, and a
premium tax charge may apply.
VALUATION PERIOD AND VALUATION DATE A "Valuation Period" is the time interval
between the closing of the New York Stock Exchange on consecutive Valuation
Dates. A "Valuation Date" is any date the New York Stock Exchange is open for
trading.
ACCUMULATION UNITS AND ACCUMULATION UNIT VALUE Amounts which you allocate to a
subaccount of the Variable Account are used to purchase Accumulation Units in
that subaccount. The Accumulation Unit Value for each subaccount at the end of
any Valuation Period is calculated by multiplying the Accumulation Unit Value
at the end of the immediately preceding Valuation Period by the subaccount's
Net Investment Factor for the Valuation Period. The Accumulation Unit Values
may go up or down. Additions or transfers to a subaccount of the Variable
Account will increase the number of Accumulation Units for that subaccount.
Withdrawals or transfers from a subaccount of the Variable Account will
decrease the number of Accumulation Units for that subaccount.
NET INVESTMENT FACTOR For each Variable Subaccount, the "Net Investment
Factor" for a Valuation Period is equal to:
1. The sum of:
a. the net asset value per share of the mutual fund underlying the
subaccount determined at the end of the current Valuation Period,
plus
b. the per share amount of any dividend or capital gain distributions
made by the mutual fund underlying the subaccount during the
current Valuation Period.
2. Divided by the net asset value per share of the mutual fund underlying
the subaccount determined as of the end of the immediately preceding
Valuation Period.
Page 5
<PAGE>
3. The result is reduced by the Mortality and Expense Risk Charge
corresponding to the portion of the current calendar year that is in the
current Valuation Period.
CHARGES The charges for this Contract include Mortality and Expense Risk
Charges, transfer charges, and any applicable taxes. If a withdrawal is made,
the Contract may also be subject to a Withdrawal Charge.
MORTALITY AND EXPENSE RISK CHARGE The annualized Mortality and Expense Risk
Charge will never be greater than 1.65%. (See Net Investment Factor for a
description of how this charge is applied.)
Our actual mortality and expense experience will not adversely affect the
dollar amount of variable benefits or other contractual payments or values
under this Contract.
TAXES Any premium tax relating to this Contract may be deducted from purchase
payments or the Contract Value when the tax is incurred or at a later time.
WITHDRAWAL You have the right to withdraw part or all of your Contract Value
at any time during the Accumulation Phase. A withdrawal must be at least $50.
If any withdrawal reduces the Contract Value to less than $1,000, we will
treat the request as a withdrawal of the entire Contract Value. If you
withdraw the entire Contract Value, the Contract will terminate.
You must specify the Investment Alternative(s) from which you wish to make a
withdrawal. When you make a withdrawal, your Contract Value will be reduced by
the amount paid to you and any applicable Withdrawal Charge and/or taxes. Any
Withdrawal Charge will be waived on withdrawals taken to satisfy IRS minimum
distribution rules. This waiver is permitted only for withdrawals which
satisfy distributions resulting from this Contract.
WITHDRAWAL CHARGE Withdrawals will be subject to a Withdrawal Charge as
follows:
Payment Year: 1 2 3 and Later
Percentage: 2% 1% 0%
To determine the Withdrawal Charge, we assume that purchase payments are
withdrawn first, beginning with the oldest payment. When all purchase payments
have been withdrawn, additional withdrawals will not be assessed a Withdrawal
Charge.
For each purchase payment withdrawal, the "Payment Year" in the table is
measured from the date we received the purchase payment. The Withdrawal Charge
is determined by multiplying the percentage corresponding to the Payment Year
times each purchase payment withdrawal.
DEATH OF OWNER If you die prior to the Payout Start Date, the new Owner will
be the surviving Owner. If there is no surviving Owner, the new Owner will be
the Beneficiary(ies). The new Owner will have the options described below.
1. IF THE SOLE NEW OWNER IS YOUR SPOUSE:
a. Your spouse may elect, within 180 days of the date of your death,
to receive the Death Benefit described below in a lump sum.
b. Your spouse may elect, within 180 days of the date of your death,
to receive an amount equal to the Death Benefit paid out under one
of the Income Plans described in the Payout Phase section. The
Payout Start Date must be within one year of your date of death.
Income Payments must be:
i. over the life of your spouse; or
ii. for a guaranteed number of payments from 5 to 30 years but
not to exceed the life expectancy of your spouse; or
Page 6
<PAGE>
iii. Over the life of your spouse with a guaranteed number of
payments from 5 to 30 years but not to exceed the life
expectancy of your spouse.
c. If your spouse does not elect one of the options above, then your
spouse may continue the Contract in the Accumulation Phase as if
the death had not occurred. If the Contract is continued in the
Accumulation Phase, the following conditions apply:
i. On the day the Contract is continued, the Contract Value
will be the Death Benefit as determined at the end of the
Valuation Period during which we received due proof of
death.
ii. The surviving spouse may make a single withdrawal of any
amount within one year of the date of death without
incurring a Withdrawal Charge.
iii. Prior to the Payout Start Date, the Death Benefit of the
continued Contract will be the greater of:
1) the sum of all purchase payments less any withdrawals,
as defined in the Death Benefit provision; or
2) the Contract Value on the date we determine the Death
Benefit; or
3) the Maximum Anniversary Value, as defined in the Death
Benefit provision, with the following changes:
A. "Date of Issue" is replaced by the date the
Contract is continued; and
B. "Initial purchase payment" is replaced with the
Death Benefit as determined at the end of the
Valuation Period during which we received due
proof of death.
2. IF THE NEW OWNER IS NOT YOUR SPOUSE BUT IS A NATURAL PERSON, THEN THIS
NEW OWNER HAS THE FOLLOWING OPTIONS:
a. The new Owner may elect, within 180 days of the date of your
death, to receive the Death Benefit described below in a lump sum.
b. The new Owner may elect, within 180 days of the date of your
death, to receive an amount equal to the Death Benefit paid out
under one of the Income Plans described in the Payout Phase
section. The Payout Start Date must be within one year of your
date of death. Income Payments must be:
i. over the life of the new Owner; or
ii. for a guaranteed number of payments from 5 to 30 years but
not to exceed the life expectancy of the new Owner; or
iii. Over the life of the new Owner with a guaranteed number of
payments from 5 to 30 years but not to exceed the life
expectancy of the new Owner.
c. The new Owner may elect to receive the Settlement Value payable in
a lump sum within 5 years of your date of death. The new Owner may
make a single withdrawal of any amount within one year of the date
of death without incurring a Withdrawal Charge.
3. IF THE NEW OWNER IS A CORPORATION OR OTHER NON-NATURAL PERSON:
a. The non-natural Owner may elect, within 180 days of your death, to
receive the Death Benefit in a lump sum.
b. The non-natural Owner may elect to receive the Settlement Value
payable in a lump sum within 5 years of your date of death.
If any new Owner is a non-natural person, all new Owners will be considered to
be non-natural persons for the above purposes.
Page 7
<PAGE>
If the new Owner who is not your spouse does not make one of the above
described elections, the Settlement Value must be withdrawn by the new Owner
on or before the mandatory distribution date 5 years after your date of death.
Under any of these options, all ownership rights are available to the new
Owner from the date of your death to the date on which the Death Benefit or
Settlement Value is paid. We reserve the right to extend beyond 180 days the
period when we will pay the Death Benefit.
DEATH OF ANNUITANT If the Annuitant who is not also the Owner dies prior to
the Payout Start Date, the Owner must elect an applicable option listed below.
If the option selected is 1(a) or 1(b)(ii) below, the new Annuitant will be
the youngest Owner, unless the Owner names a different Annuitant.
1. IF THE OWNER IS A NATURAL PERSON:
a. The Owner may choose to continue this Contract as if the death had
not occurred; or
b. If we receive due proof of death within 180 days of the date of
the Annuitant's death, then the Owner may alternatively choose to:
i. Receive the Death Benefit in a lump sum; or
ii. Apply the Death Benefit to an Income Plan which must begin
within one year of the date of death.
2. IF THE OWNER IS A NON-NATURAL PERSON:
a. The non-natural Owner may elect, within 180 days of the
Annuitant's date of death, to receive the Death Benefit in a lump
sum; or
b. The non-natural Owner may elect to receive the Settlement Value
payable in a lump sum within 5 years of the Annuitant's date of
death.
If the non-natural Owner does not make one of the above described elections,
the Settlement Value must be withdrawn by the non-natural Owner on or before
the mandatory distribution date 5 years after the Annuitant's death.
Under any of these options, all ownership rights are available to the Owner
from the date of the Annuitant's death to the date on which the Death Benefit
or Settlement Value is paid. We reserve the right to extend beyond 180 days
the period when we will pay the Death Benefit.
DEATH BENEFIT Except as defined in the Death of Owner provision, when the
surviving spouse continues the Contract, prior to the Payout Start Date, the
Death Benefit is equal to the greatest of the following Death Benefit
alternatives:
1. the sum of all purchase payments less any withdrawals; or
2. the Contract Value on the date we determine the Death Benefit; or
3. the Maximum Anniversary Value.
a. On the date of issue, the Maximum Anniversary Value is equal to
the initial purchase payment.
b. After issue, the Maximum Anniversary Value is recalculated when a
purchase payment or withdrawal is made or on a contract
anniversary as follows:
i. For purchase payments, the Maximum Anniversary Value is
equal to the most recently calculated Maximum Anniversary
Value plus the purchase payment.
ii. For withdrawals, the Maximum Anniversary Value is equal to
the most recently calculated Maximum Anniversary Value
reduced by a withdrawal adjustment, as defined below.
Page 8
<PAGE>
iii. On each contract anniversary, the Maximum Anniversary Value
is equal to the greater of the Contract Value or the most
recently calculated Maximum Anniversary Value.
In the absence of any withdrawals or purchase payments, the Maximum
Anniversary Value will be the greatest of all anniversary Contract Values on
or prior to the date we calculate the Death Benefit. The Maximum Anniversary
Value will be recalculated until the first Contract anniversary after the 80th
birthday of the oldest Owner or, if no Owner is a living individual, the
Annuitant. After that date, the Maximum Anniversary Value will be recalculated
only for purchase payments and withdrawals. The Maximum Anniversary Value will
never be greater than the maximum death benefit allowed by any non-forfeiture
laws which govern this Contract.
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Contract Value immediately prior to the withdrawal.
(c) = the value of the applicable Death Benefit alternative immediately
prior to the withdrawal.
We will determine the value of the Death Benefit as of the end of the
Valuation Period during which we receive a complete request for payment of the
Death Benefit. A complete request includes due proof of death.
SETTLEMENT VALUE The Settlement Value is the same amount that would be paid in
the event of a full withdrawal of the Contract Value. We will calculate the
Settlement Value at the end of the Valuation Period coinciding with the
requested distribution date for payment or on the mandatory distribution date
of 5 years after the date of death, whichever is earlier.
Page 9
<PAGE>
-----------------------------------------------------------------------------
PAYOUT PHASE
-----------------------------------------------------------------------------
PAYOUT PHASE DEFINED The "Payout Phase" is the second of the two phases during
your Contract. During this phase the Contract Value less any applicable taxes
is applied to the Income Plan you choose and is paid out as provided in that
plan.
The Payout Phase begins on the Payout Start Date. It continues until we make
the last payment as provided by the Income Plan chosen.
PAYOUT START DATE The "Payout Start Date" is the date the Contract Value less
any applicable taxes is applied to an Income Plan. The anticipated Payout
Start Date is shown on the Annuity Data Page. You may change the Payout Start
Date by writing to us at least 30 days prior to this date.
The Payout Start Date must be on or before the later of:
1. the Annuitant's 90th birthday; or
2. the 10th anniversary of the Contract's issue date.
INCOME PLANS An "Income Plan" is a series of payments on a scheduled basis to
you or to another person designated by you. The Contract Value on the Payout
Start Date less any applicable taxes, will be applied to your Income Plan
choice from the following list:
1. LIFE INCOME WITH GUARANTEED PAYMENTS. We will make payments for as long
as the Annuitant lives. If the Annuitant dies before the selected number
of guaranteed payments have been made, we will continue to pay the
remainder of the guaranteed payments.
2. JOINT AND SURVIVOR LIFE INCOME WITH GUARANTEED PAYMENTS. We will make
payments for as long as either the Annuitant or joint Annuitant, named
at the time of Income Plan selection, lives. If both the Annuitant and
the joint Annuitant die before the selected number of guaranteed
payments have been made, we will continue to pay the remainder of the
guaranteed payments.
3. GUARANTEED NUMBER OF PAYMENTS. We will make payments for a specified
number of months beginning on the Payout Start Date. These payments do
not depend on the Annuitant's life. The number of months guaranteed may
be from 60 to 360. Income payments for less than 120 months may be
subject to a Withdrawal Charge.
We reserve the right to make available other Income Plans.
INCOME PAYMENTS Income payment amounts may be Variable Amount Income Payments,
Fixed Amount Income Payments, or both. The method of calculating the initial
payment is different for the two types of payments.
VARIABLE AMOUNT INCOME PAYMENTS Variable Amount Income Payments will vary to
reflect the performance of the Variable Account. The portion of the initial
income payment based upon a particular Variable subaccount is determined by
applying the amount of the Contract Value in that subaccount on the Payout
Start Date, less any applicable premium tax, to the appropriate value from the
Income Payment Table. This portion of the initial income payment is divided by
the Annuity Unit Value on the Payout Start Date for that Variable subaccount
to determine the number of Annuity Units from that subaccount which will be
used to determine subsequent income payments. Unless transfers are made
between subaccounts, each subsequent income payment from that subaccount will
be that number of Annuity Units times the Annuity Unit Value for the
subaccount for the Valuation Date on which the income payment is made.
Page 10
<PAGE>
ANNUITY UNIT VALUE The Annuity Unit Value for each subaccount of the Variable
Account at the end of any Valuation Period is calculated by:
1. multiplying the Annuity Unit Value at the end of the immediately
preceding Valuation Period by the subaccount's Net Investment Factor
during the period; and then
2. dividing the result by 1.000 plus the assumed investment rate for the
period. The assumed investment rate is an effective annual rate of 3%.
We reserve the right to offer an assumed investment rate greater than
3%.
FIXED AMOUNT INCOME PAYMENTS The income payment amount derived from any monies
allocated to the Fixed Account option during the Accumulation Phase is fixed
for the duration of the Income Plan. The Fixed Amount Income Payment is
calculated by applying the portion of the Contract Value in the Fixed Account
Option on the Payout Start Date, less any applicable premium tax, to the
greater of the appropriate value from the Income Payment Table selected or
such other value as we are offering at that time.
ANNUITY TRANSFERS After the Payout Start Date, you may transfer among the
variable subaccounts. You may make up to 12 transfers per Contract year. No
transfers may be made from the Fixed Amount Income Payment. Transfers from the
Variable Amount Income Payment to the Fixed Amount Income Payment may be made
only if Income Plan 3 has been chosen, and may not be made for six months
after the Payout Start Date.
PAYOUT TERMS AND CONDITIONS The income payments are subject to the following
terms and conditions:
1. If no purchase payments have been received for two years and the
Contract Value is less than $2,000, or not enough to provide an initial
payment of at least $20, we reserve the right to:
a. change the payment frequency to make the payment at least $20; or
b. terminate the Contract and pay you the Contract Value less any
applicable taxes in a lump sum.
2. If we do not receive a written choice of an Income Plan from you at
least 30 days before the Payout Start Date, the Income Plan will be Life
Income with Guaranteed Payments for 120 months.
3. If you choose an Income Plan which depends on any person's life, we may
require:
a. proof of age and sex before income payments begin; and
b. proof that the Annuitant or joint Annuitant is still alive before
we make each payment.
4. After the Payout Start Date, the Income Plan cannot be changed and
withdrawals cannot be made unless income payments are being made under
Income Plan 3. You may terminate the income payments being made under
Income Plan 3 at any time and withdraw their value, subject to
Withdrawal Charges.
5. If any Owner dies during the Payout Phase, the remaining income payments
will be paid to the successor Owner as scheduled.
Page 11
<PAGE>
-----------------------------------------------------------------------------
INCOME PAYMENT TABLES
-----------------------------------------------------------------------------
The initial income payment will be at least the amount based on the adjusted
age of the Annuitant(s) and the tables below, less any federal income taxes
which are withheld. The adjusted age is the actual age on the Payout Start
Date reduced by one year for each six full years between January 1, 1983 and
the Payout Start Date. Income payments for ages and guaranteed payment periods
not shown below will be determined on a basis consistent with that used to
determine those that are shown. The Income Payment Tables are based on 3.0%
interest and the 1983a Annuity Mortality Tables.
<TABLE>
<CAPTION>
INCOME PLAN 1 - LIFE INCOME WITH GUARANTEED PAYMENTS FOR 120 MONTHS
===========================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
---------------------------------------------------------------------------------------------------------------------------
Annuitant's Annuitant's Annuitant's
Adjusted Male Female Adjusted Male Female Adjusted Male Female
Age Age Age
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.43 $3.25 49 $4.15 $3.82 63 $5.52 $4.97
36 3.47 3.28 50 4.22 3.88 64 5.66 5.09
37 3.51 3.31 51 4.29 3.94 65 5.80 5.22
38 3.55 3.34 52 4.37 4.01 66 5.95 5.35
39 3.60 3.38 53 4.45 4.07 67 6.11 5.49
40 3.64 3.41 54 4.53 4.14 68 6.27 5.64
41 3.69 3.45 55 4.62 4.22 69 6.44 5.80
42 3.74 3.49 56 4.71 4.29 70 6.61 5.96
43 3.79 3.53 57 4.81 4.38 71 6.78 6.13
44 3.84 3.58 58 4.92 4.46 72 6.96 6.31
45 3.90 3.62 59 5.02 4.55 73 7.13 6.50
46 3.96 3.67 60 5.14 4.65 74 7.31 6.69
47 4.02 3.72 61 5.26 4.75 75 7.49 6.88
48 4.08 3.77 62 5.39 4.86
===========================================================================================================================
</TABLE>
<TABLE>
<CAPTION>
INCOME PLAN 2 - JOINT AND SURVIVOR LIFE INCOME WITH GUARANTEED PAYMENTS FOR 120 MONTHS
===========================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
---------------------------------------------------------------------------------------------------------------------------
Female Annuitant's Adjusted Age
---------------------------------------------------------------------------------------------------------------------------
Male
Annuitant's 35 40 45 50 55 60 65 70 75
Adjusted
Age
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
35 $3.09 $3.16 $3.23 $3.28 $3.32 $3.36 $3.39 $3.40 $3.42
40 3.13 3.22 3.31 3.39 3.46 3.51 3.56 3.59 3.61
45 3.17 3.28 3.39 3.50 3.60 3.69 3.76 3.81 3.85
50 3.19 3.32 3.45 3.60 3.74 3.87 3.98 4.07 4.14
55 3.21 3.35 3.51 3.68 3.87 4.06 4.23 4.37 4.48
60 3.23 3.37 3.55 3.75 3.98 4.23 4.47 4.70 4.88
65 3.24 3.39 3.57 3.80 4.07 4.37 4.71 5.04 5.34
70 3.24 3.40 3.59 3.83 4.13 4.48 4.90 5.36 5.81
75 3.25 3.41 3.61 3.86 4.17 4.56 5.04 5.61 6.22
===========================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
INCOME PLAN 3 - GUARANTEED NUMBER OF PAYMENTS
=============================================================================
Monthly Income Payment for each
Specified Period $1,000 Applied to this Income Plan
-----------------------------------------------------------------------------
<S> <C>
10 Years $9.61
11 Years 8.86
12 Years 8.24
13 Years 7.71
14 Years 7.26
15 Years 6.87
16 Years 6.53
17 Years 6.23
18 Years 5.96
19 Years 5.73
20 Years 5.51
=============================================================================
</TABLE>
-----------------------------------------------------------------------------
GENERAL PROVISIONS
-----------------------------------------------------------------------------
THE ENTIRE CONTRACT The entire contract consists of this Contract, any written
application, and any Contract endorsements and riders.
All statements made in a written application are representations and not
warranties. No statement will be used by us in defense of a claim or to void
the Contract unless it is included in a written application.
We may not modify this Contract without your consent, except to make it comply
with any changes in the Internal Revenue Code or as required by any other
applicable law. Only our officers may change this Contract. No other
individual may do this.
INCONTESTABILITY We will not contest the validity of this Contract after the
issue date.
MISSTATEMENT OF AGE OR SEX If any age or sex has been misstated, we will pay
the amounts which would have been paid at the correct age and sex.
If we find the misstatement of age or sex after the income payments begin, we
will:
1. pay all amounts underpaid including interest calculated at an effective
annual rate of 6%; or
2. stop payments until the total payments are equal to the corrected
amount.
ANNUAL STATEMENT At least once a year, prior to the Payout Start Date, we will
send you a statement containing Contract Value information. The effective date
of the information in the annual statement will not be more than two months
before date of mailing. We will provide you with Contract Value information at
any time upon request. The information presented will comply with any
applicable law.
SETTLEMENTS We may require that this Contract be returned to us prior to any
settlement. We must receive due proof of death of the Owner or Annuitant prior
to settlement of a death claim.
Any full withdrawal or Death Benefit under this Contract will not be less than
the minimum benefits required by any statute of the state in which the
Contract is delivered.
Page 13
<PAGE>
DEFERMENT OF PAYMENTS We will pay any amounts due from the Variable Account
under this Contract within seven days, unless:
1. the New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on such Exchange is restricted;
2. an emergency exists as defined by the Securities and Exchange
Commission; or
3. the Securities and Exchange Commission permits delay for the protection
of Contract holders.
We reserve the right to postpone payments or transfers from the Fixed Account
options for up to six months. If we elect to postpone payments from the Fixed
Account for 30 days or more, we will pay interest as required by applicable
law. Any interest would be payable from the date the withdrawal request is
received by us to the date the payment is made.
VARIABLE ACCOUNT MODIFICATIONS We reserve the right, subject to applicable
law, to make additions to, deletions from, or substitutions for the mutual
fund shares underlying the subaccounts of the Variable Account. We will not
substitute any shares attributable to your interest in a subaccount of the
Variable Account without notice to you and prior approval of the Securities
and Exchange Commission, to the extent required by the Investment Company Act
of 1940, as amended.
We reserve the right to establish additional subaccounts of the Variable
Account, each of which would invest in shares of a mutual fund. You may then
instruct us to allocate purchase payments or transfers to such subaccounts,
subject to any terms set by us or the mutual fund.
In the event of any such substitution or change, we may by endorsement, make
such changes as may be necessary or appropriate to reflect such substitution
or change.
If we deem it to be in the best interests of persons having voting rights
under the contracts, the Variable Account may be operated as a management
company under the Investment Company Act of 1940, as amended, or it may be
deregistered under such Act in the event such registration is no longer
required.
Page 14
EXHIBIT 5
APPLICATION
FOR PUTNAM ALLSTATE VARIABLE ANNUITY
Insurer, as used in this application, means
Allstate Life Insurance Company.
ALLSTATE LIFE INSURANCE COMPANY
OVERNIGHT:
3100 Sanders Road - J4A
Northbrook, IL 60062
MAIL: P.O. Box 94039
Palatine, IL 60094-4039
-----------------------------------------------------------------------------
1) SELECT PRODUCT
[ ] ADVISOR [ ] ADVISOR-C [ ] ADVISOR PLUS
FOR BROKER USE ONLY [ ] PROGRAM A [ ] PROGRAM B [ ] PROGRAM C [ ] PROGRAM D
Programs A and B only with Advisor Plus. Contact your home office for program
information.
-----------------------------------------------------------------------------
2) OWNER
If no Annuitant is specified in section 4, the Owner will be the Annuitant.
Name _________________________________________________________________________
Street Address _______________________________________________________________
City State Zip _______________________________________________________________
SS#/TIN [ ][ ][ ] [ ][ ] [ ][ ][ ][ ]
Date of birth Month [ ][ ] Day [ ][ ] Year [ ][ ]
[ ] Male [ ] Female [ ] Trustee [ ] CRT
Phone # [ ][ ][ ] [ ][ ][ ] [ ][ ][ ][ ]
-----------------------------------------------------------------------------
3) JOINT OWNER
(If any)
Name _________________________________________________________________________
Relationship to Owner ________________________________________________________
SS#/TIN [ ][ ][ ] [ ][ ] [ ][ ][ ][ ]
Date of birth Month [ ][ ] Day [ ][ ] Year [ ][ ]
[ ] Male [ ] Female
-----------------------------------------------------------------------------
4) ANNUITANT
Complete only if different from the Owner in Section 2.
Name _________________________________________________________________________
Street Address _______________________________________________________________
City State Zip _______________________________________________________________
SS#/TIN [ ][ ][ ] [ ][ ] [ ][ ][ ][ ]
Date of birth Month [ ][ ] Day [ ][ ] Year [ ][ ]
[ ] Male [ ] Female
-----------------------------------------------------------------------------
5) BENEFICIARY(IES)
_____________________________________________________________________________
Designated Name Relationship to Owner Percentage
_____________________________________________________________________________
Designated Name Relationship to Owner Percentage
_____________________________________________________________________________
Designated Name Relationship to Owner Percentage
_____________________________________________________________________________
Contingent Name(s) Relationship to Owner Percentage
-----------------------------------------------------------------------------
6) TYPE OF PLAN
[ ] Nonqualified [ ] Traditional IRA [ ] SEP-IRA [ ] Roth IRA [ ] 401(k)
[ ] 401(a) [ ] 403(b)
[ ] Other________________________________
Tax year for which initial contribution is being made________
-----------------------------------------------------------------------------
7) SOURCE OF FUNDS
[ ] Initial [ ] Transfer [ ] Rollover [ ] 1035
-----------------------------------------------------------------------------
PA43 Page 1 of 4
<PAGE>
8) INVESTMENT SELECTION
Please check selected investment choice(s) and indicate whole percentage
allocations. The initial premium will be allocated as selected here. If dollar
cost averaging, see Section 9B.
Initial $___________________
Make check payable to Allstate Life Insurance Company.
[ ] American Government Income ______%
[ ] Asia Pacific Growth ______%
[ ] Diversified Income ______%
[ ] The George Putnam Fund ______%
[ ] Global Asset Allocation ______%
[ ] Global Growth ______%
[ ] Growth and Income ______%
[ ] Health Sciences ______%
[ ] High Yield ______%
[ ] Income ______%
[ ] International Growth ______%
[ ] International Growth and Income ______%
[ ] International New Opportunities ______%
[ ] Investors ______%
[ ] Money Market ______%
[ ] New Opportunities ______%
[ ] New Value ______%
[ ] OTC & Emerging Growth ______%
[ ] Research ______%
[ ] Small Cap Value ______%
[ ] Utilities Growth and Income ______%
[ ] Vista ______%
[ ] Voyager ______%
[ ] ___________________________ ______%
[ ] 6-Month DCA Fixed Account* ______%
[ ] 12-Month DCA Fixed Account* ______%
[ ] Standard Fixed Account* ______%
*May not be available in all states or all products. Complete DCA Instructions
in 9B for DCA Fixed Accounts.
Total __100__%
-----------------------------------------------------------------------------
OPTIONAL PROGRAMS
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9A) AUTOMATIC REBALANCING PROGRAM
[ ] Moderate -- 35% Diversified Income, 20% Growth and Income, 20% Investors,
15% International Growth, 10% OTC & Emerging Growth
[ ] Aggressive -- 25% Investors, 25% Growth and Income, 20% Diversified
Income, 15% International Growth, 15% OTC & Emerging Growth
[ ] Flagship -- 38% Growth and Income, 38% Voyager, 24% International Growth
If a custom model is created, please complete and sign the separate form in
the back of the booklet.
Transfer frequency: Quarterly
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9B) DOLLAR COST AVERAGING PROGRAM
May not be available in all states or in all products.
Transfer to (select investment option) Percent per transfer
______________________________________ ___________________%
______________________________________ ___________________%
______________________________________ ___________________%
______________________________________ ___________________%
______________________________________ ___________________%
______________________________________ ___________________%
______________________________________ ___________________%
TOTAL = 100%
[__________]
Transfer Frequency: Monthly
Program Options:
[ ] 6-month program*
[ ] 12-month program**
Number of occurrences (3-12)
DCA Program length: Minimum 3 months, maximum 12 months.
*All assets must be transferred into the variable subaccounts within 3 to 6
months from the date of enrollment.
**All assets must be transferred into the variable subaccounts within 7 to 12
months from the date of enrollment.
If you wish to dollar cost average from the Standard Fixed Account or variable
subaccounts, please see the form in the back of the booklet.
The programs above may be terminated or modified at any time by me or the
Insurer by providing written notice to the other party or, if investment
option balances are inadequate, by executing the requested transfer. In the
unlikely event that another financial transaction request is received on the
transfer date, the Insurer may delay processing the scheduled transfer if
enrolling in the Systematic Withdrawal Plan.
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OPTIONAL RIDERS
May not be available in all states or in all products. There are additional
charges for optional riders; see prospectus for details.
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10A) RETIREMENT INCOME GUARANTEE OPTION*
Select only one income benefit rider
[ ] Income Benefit Rider 1: Guaranteed Return of Premium
OR
[ ] Income Benefit Rider 2: Guaranteed Greater of 5% Annual Increase or
Maximum Anniversary Value
*NOT AVAILABLE FOR OWNERS OVER AGE 75.
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10B) ENHANCED DEATH BENEFIT OPTION*
[ ] 5% Annual Increase
Greater of base death benefit or 5% Annual Increase
*NOT AVAILABLE FOR OWNERS OVER AGE 75.
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11) Special Remarks
(Attach separate page if necessary.)
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
_____________________________________________________________________________
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12) OWNER(S') ACKNOWLEDGEMENTS
The following states require the applicant to acknowledge the information
below that pertains to his or her specific state. Check the appropriate box
for your resident state, sign and date the bottom of Section 13.
[ ] ARKANSAS [ ] KENTUCKY [ ] MAINE [ ] NEW MEXICO [ ] OHIO
[ ] PENNSYLVANIA
Any person who knowingly and with intent to defraud any insurance company or
other person and who files an application for insurance or statement of claim
containing any materially false information or conceals, for the purpose of
misleading, information concerning any false materials thereto commits a
fraudulent insurance act, which is a crime and subjects such person to
criminal and civil penalties.
[ ] ARIZONA Upon your written request we will provide you within a reasonable
period of time, reasonable, factual information regarding the benefits and
provisions of the annuity contract for which you are applying. If for any
reason you are not satisfied with the contract, you may return the contract
within twenty days after you receive it. If the contract you are applying for
is a variable annuity, you will receive an amount equal to the sum of (i) the
difference between the premiums paid and the amounts allocated to any account
under the contract and (ii) the Contract Value on the date the returned
contract is received by our company or our agent.
[ ] COLORADO It is unlawful to knowingly provide false, incomplete, misleading
facts or information to an insurance company for the purpose of defrauding or
attempting to defraud the company. Penalties may include imprisonment, fines,
denial of insurance, and civil damages. Any insurance company or agent of an
insurance company who knowingly provides false, incomplete or misleading facts
or information to a policyholder or claimant for the purpose of defrauding or
attempting to defraud the policyholder or claimant with regard to a settlement
or award payable from insurance proceeds shall be reported to the Colorado
Division of Insurance within the Department of Regulatory Services.
[ ] DISTRICT OF COLUMBIA WARNING: It is a crime to provide false or misleading
information to an insurer for the purpose of defrauding the insurer or any
other person. Penalties include imprisonment and/or fines. In addition, an
insurer may deny insurance benefits if false information materially related to
a claim was provided by the applicant.
[ ] FLORIDA [ ] GEORGIA [ ] VERMONT Any person who knowingly and with intent
to injure, defraud or deceive any insurer, files a statement of claim or an
application containing any false, incomplete or misleading information is
guilty of a felony of the third degree.
[ ] LOUISIANA [ ] OREGON Any person who knowingly presents a false or
fradulent claim for payment of a loss or benefit or knowingly presents false
information in an application for insurance is guilty of a crime and may be
subject to fines and confinement in prison.
[ ] NEW JERSEY Any person who includes any false or misleading information on
an application for an insurance policy is subject to criminal and civil
penalties.
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ANNUITIES ARE NOT FEDERALLY INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD OR
ANY OTHER AGENCY, FEDERAL OR STATE. ANNUTITIES ARE NOT OBLIGATIONS OF ANY
BANK. THE FINANCIAL INSTITUTION DOES NOT GUARANTEE PERFORMANCE BY THE INSURER
ISSUING THE ANNUITY. VARIABLE ANNUITIES INVOLVE INVESTMENT RISK, INCLUDING
POTENTIAL LOSS OF PRINCIPAL. ANY BENEFITS, VALUES OR PAYMENTS BASED ON
PERFORMANCE OF THE SEGREGATED ACCOUNTS MAY VARY (INCREASE OR DECREASE) AND ARE
NOT GUARANTEED BY OUR COMPANY, OR ANY OTHER INSURANCE COMPANY, AND ARE NOT
GUARANTEED BY THE U.S. GOVERNMENT OR ANY STATE GOVERNMENT. THE OWNER BEARS ALL
RISK FOR AMOUNTS ALLOCATED TO THE VARIABLE PORTFOLIOS. VARIABLE ANNUITIES ARE
NOT PROTECTED BY THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC) AS THE
LOSS OF THE PRINCIPAL AMOUNT INVESTED.
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13) Will the annuity applied for replace one or more existing annuity or life
insurance contracts?
[ ] Yes [ ] No (If yes, explain in Special Remarks, section 11.)
Have you purchased another annuity during the current calendar year?
[ ] Yes [ ] No
Do you or any joint owner currently own an annuity issued by the Insurer?
[ ] Yes [ ] No
[ ] I WOULD LIKE TO RECEIVE A STATEMENT OF ADDITIONAL INFORMATION (SAI)
[ ] I/WE HAVE READ THE DISCLOSURE STATEMENT ABOVE.
I/WE UNDERSTAND THAT ANNUITY PAYMENTS OR SURRENDER VALUES, WHEN BASED UPON THE
INVESTMENT EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE AND NOT GUARANTEED
AS TO A FIXED DOLLAR AMOUNT.
A copy of this application signed by the Agent will be the receipt for the
first purchase payment. If the Insurer declines this application, the Insurer
will have no liability except to return the first purchase payment.
I have read the above statements and represent that they are complete and true
to the best of my knowledge and belief. I acknowledge receipt of a variable
annuity and fund prospectus. By accepting the annuity issued, I agree to any
additions or corrections to this application.
Owner's signature __________________ Joint Owner's signature _________________
Signed at __________________________ ______________________________________
City, State Date
Do you, as Agent, have reason to believe the product applied for will replace
existing annuities or insurance? [ ] Yes [ ] No
Licensed Agent _________________ ___________________ _________________________
Signature Print name Borker/Dealer
_________________________ ___________________________________________________
SOCIAL SECURITY NUMBER Address
____________________________________________ _________________ ______________
Licensed I.D. # (for Florida agents only) E-mail address Telephone
Page 4 of 4
AAXXX 91235 2/00
EXHIBIT 10(b)
CONSENT OF
FREEDMAN, LEVY, KROLL & SIMONDS
FREEDMAN, LEVY, KROLL & SIMONDS
We hereby consent to the reference to our firm under the caption "Legal
Matters" in the prospectus contained in this Registration Statement on Form
N-4 of Allstate Life Insurance Company Separate Account A.
/s/ FREEDMAN, LEVY, KROLL & SIMONDS
Washington, D.C.
February 28, 2000
