SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDMENT NO 1 TO FORM N-8B-2
FILE NO. 811-09515
DATED July 30, 1999
REGISTRATION STATEMENT OF UNIT INVESTMENT TRUSTS WHICH ARE CURRENTLY ISSUING
SECURITIES
Pursuant to Section 8(b) of the Investment Company Act of 1940
American Enterprise Variable Life Account
Issuer of Periodic Payment Plan Certificates
C/O American Enterprise Life Insurance Company
80 S. Eighth Street
P.O. Box 534
Minneapolis, Minnesota 55440-0534
<PAGE>
I.
ORGANIZATION AND GENERAL INFORMATION
1. (a) Furnish name of the trust and Internal Revenue Service Employer
Identification Number.
American Enterprise Variable Life Account (Hereinafter called "the
Variable Account").
The Variable Account does not have an IRS Employer Identification
Number.
(b) Furnish title of each class or series of securities issued by the
trust.
Policy 4 - Flexible Premium Variable Universal Life Insurance Policy
(SIG-VUL)
2. Furnish name and principal business address and zip code and the Internal
Revenue Service Employer Identification Number of each depositor of the
trust.
American Enterprise Life Insurance Company ("American Enterprise Life") 80
S. Eighth Street, P.O. Box 534, Minneapolis, MN 55440-0534 IRS Employer
#94-27-86905
3. Furnish name and principal business address and zip code and the Internal
Revenue Service Employer Identification Number of each custodian or trustee
of the trust indicating for which class or series of securities each
custodian or trustee is acting.
Not applicable.
4. Furnish name and principal business address and zip code and the Internal
Revenue Service Employer Identification Number of each principal
underwriter currently distributing securities of the trust.
As of the date of the original registration statement, no policies were
being distributed. American Enterprise Life is the exclusive distributor of
the policies currently being distributed and may be deemed to be the
principal underwriter thereof.
5. Furnish name of state or other sovereign power, the laws of which govern
with respect to the organization of the trust.
Indiana
<PAGE>
6. (a) Furnish the dates of execution and termination of any indenture or
agreement currently in effect under the terms of which the trust was
organized and issued or proposes to issue securities.
The Variable Account was established as a separate account of American
Enterprise Life pursuant to a resolution of the Board of Directors of
American Enterprise Life adopted on July 15, 1987.
The Variable Account will continue in existence until its complete
liquidation and the distribution of its assets to the persons entitled
to receive them.
(b) Furnish the dates of execution and termination of any indenture or
agreement currently in effect pursuant to which the proceeds of
payments on securities issued or to be issued by the trust are held by
the custodian or trustee.
There is no separate Custodian Agreement. The assets of the Variable
Account will be held by American Enterprise Life as a separate account
for the exclusive benefit of Owners having an interest therein.
7. Furnish in chronological order the following information with respect to
each change of name of the trust since January 1, 1930. If the name has
never been changed, so state.
The name of the Variable Account has never been changed.
8. State the date on which the fiscal year of the trust ends.
The fiscal year of the Variable Account ends December 31.
Material Litigation
9. Furnish a description of any pending legal proceedings, material with
respect to the security holders of the trust by reason of the nature of the
claim or the amount thereof, to which the trust, the depositor, or the
principal underwriter is a party or of which the assets of the trust are
the subject, including the substance of the claims involved in such
proceedings and the title of the proceeding. Furnish a similar statement
with respect to any pending administrative proceeding commenced by a
governmental authority or any such proceeding or legal proceeding known to
be contemplated by a governmental authority. Include any proceeding which,
although immaterial itself, is representative of, or one of, a group which
in the aggregate is material.
A number of lawsuits have been filed against life and health insurers In
jurisdictions in which American Enterprise Life and AEFC do business
involving insurers' sale practices, alleged agent misconduct, failure to
properly supervise agents, and other matters. American Enterprise Life and
AEFC, like other life and health insurers, from time to time are involved
in such litigation. On October 13, 1998 an action entitled Richard Thoresen
and Elizabeth Thoresen vs. AEFC, American Partners Life Insurance Company,
American Enterprise Life Insurance Company, American Centurion Life
assurance Company, IDS Life Insurance Company and IDS Life Insurance
Company of New York was commenced in Minnesota State Court. The action was
brought by individuals who purchased an annuity in a qualified plan. They
allege that the sale of annuities in tax-deferred contributory retirement
investment plans (e.g. IRAs) is never appropriate. The plaintiffs purport
to represent a class consisting of all persons who made similar purchases.
The plaintiffs seek damages in an unspecified amount. American Enterprise
Life also is a defendant in various other lawsuits. In American Enterprise
Life's opinion, none of these lawsuits will have a material adverse effect
on our financial condition.
<PAGE>
II.
GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
General Information Concerning the Securities of the Trust and the of Holders
10. Furnish a brief statement with respect to the following matters for each
class or series of securities issued by the trust:
(a) Whether the securities are of the registered or bearer type.
The Policies are of the registered type insofar as each Policy is personal
to the Owner, the records concerning the Owner are maintained by American
Enterprise Life, and ownership cannot be transferred except upon notice to
American Enterprise Life.
(b) Whether the securities are of the cumulative or distributive type.
The Policies are of the cumulative type, providing for no distribution of
income, dividends or capital gain, except in connection with surrender or
payment of proceeds upon the death of the Insured.
The Policy is non-participating.
(c) The rights of security holders with respect to withdrawal or
redemption.
Policy 1
The policy may be returned for any reason and the owner will receive a
refund of policy value and policy, less indebtedness, plus any premium
expense charges or monthly deduction taken. To do so, the owner must mail
or deliver the policy to American Enterprise Life or their sales
representative with a written request for cancellation by the 10th day
after you receive it. On the date the request is postmarked or received,
the policy will immediately be considered void from the start.
If the owner surrenders the policy or the policy lapses during the first 15
policy years and in the 15 years following an increase in specified amount
a surrender charge will be assessed. It reimburses American Enterprise Life
for costs of issuing the policy, such as processing the application
(primarily underwriting) and setting up computer records. It also partially
pays for sales representative commissions, advertising and printing the
prospectus and sales literature.
<PAGE>
The surrender charge for the initial specified amount will be shown in the
policy. It is based on the insured's insurance age, sex, risk
classification and initial specified amount. The surrender charge for the
initial specified amount will decrease annually until it is zero at the
beginning of the 16th policy year. If the specified amount is increased, an
additional surrender charge will apply. The additional surrender charge
will be shown in a revised policy. It will be based on the insured's
attained insurance age, sex, risk classification and the amount of the
increase. The additional surrender charge will decrease annually until it
is zero at the beginning of the 16th year following the increase.
The following example illustrates how we calculate the surrender charge for
a male, insurance age 35 qualifying for nonsmoker rates. We assume the
specified amount to be $100,000.
Lapse or surrender
during year Surrender Charge
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16+ 0
The amounts shown decrease on an annual basis.
The maximum surrender charge is the rate from the table below multiplied by the
number of thousands of dollars of initial specified amount. For example, a male
age 20 with a nonsmoker risk classification and an initial specified amount of
$50,000 will have a surrender charge of $___ multiplied by 50 or $____. As
another example, a female age 75 with a smoker risk classification and an
initial specified amount of $5,000,000 will have a surrender charge of $____
multiplied by 5,000 or $____.
<PAGE>
Surrender Charges
Age Male Standard Male Nonsmoker Female Standard Female Nonsmoker
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
<PAGE>
Age Male Standard Male Nonsmoker Female Standard Female Nonsmoker
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
<PAGE>
Age Male Standard Male Nonsmoker Female Standard Female Nonsmoker
76
77
78
79
80
81
82
83
84
85
If the owner surrenders part of the value of the policy, they will be
charged $25 (or 2% of the amount surrendered, if less). This fee is
guaranteed not to increase for the duration of your policy.
The owner may surrender the policy in full or in part by written or
telephone request. American Enterprise Life will process your surrender
request at the end of the valuation period during which your request is
received. American Enterprise Life may require that the owner return your
policy.
American Enterprise Life will normally process your payment within seven
days; however, it reserves the right to defer payment.
If the owner surrenders the policy totally, they receive its cash surrender
value -- the policy value minus outstanding indebtedness and applicable
surrender charges. We will compute the value of each subaccount as of the
end of the valuation period during which your request is received.
After the first policy year, the owner may surrender any amount from $500
up to 90% of the policy's cash surrender value. (Partial surrenders by
telephone are limited to $50,000.) The owner will be charged a partial
surrender fee, described under "Loads, fees and charges."
Unless the owner specifies otherwise, American Enterprise Life will make
partial surrenders from the fixed account and subaccounts on a pro-rata
basis at the end of the valuation period during which your request is
received. In determining these proportions, American Enterprise Life first
subtracts the amount of any outstanding indebtedness from the fixed account
value.
(d) The rights of security holders with respect to conversion, transfer,
partial redemption and similar matters.
Policy 1
Effect of partial surrenders:
o The policy value will be reduced by the amount of the partial
surrender and fee.
o The death benefit will be reduced by the amount of the partial
surrender and fee, or, if the death benefit is based on the
applicable percentage of policy value, by an amount equal to the
applicable percentage times the amount of the partial surrender.
<PAGE>
o A partial surrender may terminate the no lapse guarantee. The
surrender amount is deducted from total premiums paid, which may
reduce the total below the level required to keep the no lapse
guarantee in effect.
o If Option 1 is in effect, the specified amount will be reduced by
the amount of the partial surrender and fee. American Enterprise
Life will deduct this decrease from the current specified amount.
o If Option 2 is in effect, a partial surrender does not affect the
specified amount.
Transfers between the fixed account and subaccounts
The owner may transfer policy values from one subaccount to another or
between subaccounts and the fixed account. For most transfers, American
Enterprise Life will process the transfer request at the end of the
valuation period during which your request is received. There is no charge
for transfers. Before transferring policy value, the owner should consider
the risks involved in switching investments.
American Enterprise Life may suspend or modify the transfer privilege at
any time with the necessary approval of the Securities and Exchange
Commission. Transfers involving the fixed account are subject to the
restrictions below.
Fixed account transfer policies
o Transfers from the fixed account must be made during a 30-day
period starting on a policy anniversary, except for automated
transfers, which can be set up at any time for transfer periods
the owner chooses subject to certain minimums.
o If American Enterprise Life receives the request to transfer
funds from the fixed account within 30 days before the policy
anniversary, the transfer will become effective on the
anniversary.
o If American Enterprise Life receives the request on or within 30
days after the policy anniversary, the transfer will be effective
on the day American Enterprise Life receives it.
o American Enterprise Life will not accept requests for transfers
from the fixed account at any other time.
o If the owner have made a transfer from the fixed account to one
or more subaccounts, they may not make a transfer from any
subaccount back to the fixed account until the next policy
anniversary. American Enterprise Life will waive this limitation
once during the first two policy years if the owner exercises the
policy's right to exchange provision.
Minimum transfer amounts
From a subaccount to another subaccount or the fixed account:
For mail and phone transfers, $250 or the entire subaccount balance,
whichever is less.
o For automated transfers, $50.
<PAGE>
From the fixed account to a subaccount:
o $250 or the entire fixed account balance minus any outstanding
indebtedness, whichever is less.
o For automated transfers -- $50.
Maximum transfer amounts
From a subaccount to another subaccount or the fixed account:
o Entire subaccount balance.
From the fixed account to a subaccount:
o Entire fixed account balance minus any outstanding indebtedness.
Maximum number of transfers per year
American Enterprise Life reserves the right to limit mail and telephone
transfers to 12 per policy year. Twelve automated transfers per policy are
allowed.
Two ways to request a transfer, loan or surrender
The owner must provide their name, policy number, Social Security Number or
Taxpayer Identification Number when they request a transfer.
1 By letter
Regular mail:
American Enterprise Life Insurance Company
80 S. Eighth Street
P.O. Box 534
Minneapolis, MN 55440-0534
Express mail:
American Enterprise Life Insurance Company
Attention: Unit 829
733 Marquette Ave.
Minneapolis, MN 55402
2 By phone
[Call between 7 a.m. and 6 p.m. Central Time:
1-800-333-3437 (toll free) or
(612) 671-7700 Minneapolis
TTY service for the hearing impaired:
1-800-285-8846 (toll free)]
[to be filed by amendment]
o American Enterprise Life answers phone requests promptly, but the
owner may experience delays when call volume is unusually high. If the
owner is unable to get through, use mail procedure as an alternative.
<PAGE>
o American Enterprise Life will honor any telephone transfer or
surrender request believed to be authentic and will use reasonable
procedures to confirm that they are. These include asking identifying
questions and tape recording calls. As long as these procedures are
followed, neither American Enterprise Life nor its affiliates will be
liable for any loss resulting from fraudulent requests.
o Telephone transfers are automatically available. The owner may request
that telephone transfers not be authorized from their account by
writing American Enterprise Life.
Automated transfers
In addition to written and phone requests, the owner can arrange to have
policy value transferred from one account to another automatically. Their
sales representative can help them set up an automated transfer.
Automated transfer policies:
o Minimum automated transfer: $50
o Only one automated transfer arrangement can be in effect at any time.
Policy values may be transferred to one or more subaccounts and the
fixed account but can be transferred from only one account.
o The owner can start or stop this service by written request. They must
allow seven days for American Enterprise Life to change any
instructions that are currently in place.
o Automated transfers from the fixed account may not exceed an amount
that, if continued, would deplete the fixed account within 12 months.
o If the owner has made a transfer from the fixed account to one or more
subaccounts, they may not make a transfer from any subaccount back to
the fixed account until the next policy anniversary.
o If the request is submitted with an application for a policy, it will
not take effect until the policy is issued.
o If the value of the account from which policy value is being
transferred is less than the $50 minimum, the transfer arrangement
will automatically be stopped.
o Automated transfers are subject to all other policy provisions and
terms including provisions relating to the transfer of money between
the fixed account and the subaccounts.
Exchange right
For two years after the policy is issued, the owner can exchange it for one
that provides benefits that do not vary with the investment return of the
subaccounts. Because the policy itself offers a fixed return option, all
the owner needs to do is transfer all of the policy value in the
subaccounts to the fixed account. American Enterprise Life will
automatically credit all future premium payments to the fixed account
unless the owner requests a different allocation.
Such transfer will not count against the 12-transfers-per-year limit. Also,
any restrictions on transfers into the fixed account will be waived.
There will be no effect on the policy's death benefit, specified amount,
net amount at risk, risk classification(s) or issue age. Only the method of
funding the policy value will be affected.
<PAGE>
In Connecticut, during the first 18 months after the policy is issued, the
owner has the right to exchange the policy for a policy of permanent fixed
benefit life insurance American Enterprise Life is then offering.
American Enterprise Life will not require evidence of insurability.
American Enterprise Life will require that:
1. this policy is in force; and
2. the owner's request is in writing; and
3. the owner repay any existing indebtedness.
The new policy will have the same initial death benefit, policy date and
issue age as this policy. The premium for the new policy will be based on
American Enterprise Life's rates in effect on its policy date for the same
class of risk as under this policy.
American Enterprise Life will inform you of the premium for the new policy
and any extra sum required or allowance to be made for a cash surrender
value adjustment that takes appropriate account of the values under both
this policy exceeds the cash surrender value of the new policy, the excess
will be sent to the owner. If the cash surrender value of this policy is
less than the cash surrender value of the new policy, you will be required
to send American Enterprise Life the shortage amount for this exchange to
be completed.
(e) If the trust is the issuer of periodic payment plan certificates, the
substance of the provisions of any indenture or agreement with respect
to lapses or defaults by security holders in making principal
payments, and with respect to reinstatement.
Policy 1
Keeping the policy in force
No lapse guarantee
The NLG provides that the policy will remain in force for 5 policy years
even if the cash surrender value is insufficient to pay the monthly
deduction. The NLG will stay in effect as long as:
o the sum of premiums paid; minus
o partial surrenders; minus
o outstanding indebtedness; equals or exceeds
o the minimum monthly premiums due since the policy date
The minimum monthly premium is shown in the policy.
If, on a monthly date, the owner has not paid enough premiums to keep the
no lapse guarantee in effect, the no lapse guarantee will terminate. In
addition, the policy will lapse (terminate) if the cash surrender value is
less than the amount needed to pay the monthly deduction.
Grace period
If on a monthly date the cash surrender value of the policy is less than
the amount needed to pay the next monthly deduction and the NLG is not in
effect the owner will have 61 days to pay the required premium amount. If
the owner does not pay the required premium, the policy will lapse.
<PAGE>
American Enterprise Life will mail a notice to their last known address,
requesting payment of a premium needed to keep the policy in force. If
American Enterprise Life receives this premium before the end of the 61-day
grace period, it will use the payment to cover all monthly deductions and
any other charges then due. American Enterprise Life will add any balance
to the policy value and allocated in the same manner as other premium
payments.
If a policy lapses with outstanding indebtedness, any excess of the
outstanding indebtedness over the premium paid generally will be taxable to
the owner. If the insured dies during the grace period, any overdue monthly
deductions will be deducted from the death benefit.
Reinstatement
Your policy may be reinstated within five years after it lapses, unless you
surrendered it for cash. To reinstate, American Enterprise Life will
require:
o a written request;
o evidence satisfactory to American Enterprise Life that the insured
remains insurable;
o payment of the required reinstatement premium and
o payment or reinstatement of any indebtedness.
The reinstatement premium is the required premium to reinstate the policy.
The effective date of a reinstated policy will be the monthly date on or
next following the day American Enterprise Life accepts your application
for reinstatement. The suicide period will apply from the effective date of
reinstatement (except in Georgia, Nebraska, Oklahoma, Pennsylvania, South
Carolina, Tennessee, Utah and Virginia). Surrender charges will also be
reinstated.
American Enterprise Life will have two years from the effective date of
reinstatement to contest the truth of statements or representations in the
reinstatement application.
(f) substance of any provisions of any indenture or agreement with respect
to voting rights, together with the names of any persons other than
security holders given the right to exercise voting rights pertaining
to the trust's securities or the underlying securities and the
relationship of such persons to the trust.
[to be filed by amendment]
(g) Whether security holders must be given notice of any change in:
(1) the composition of the assets of the trust.
American Enterprise Life may change the funds from which the subaccounts
buy shares if: the existing funds become unavailable, or in the judgment of
American Enterprise Life, the funds are no longer suitable for the
subaccounts. If these situations occur, American Enterprise Life have the
right to substitute the funds held in the subaccounts for other registered,
open-end management investment companies as long as American Enterprise
Life believe it would be in the best interest of persons having voting
rights under the policies.
<PAGE>
In the event of any such substitution or change, American Enterprise Life
may, without the consent or approval of owners, amend the policy and take
whatever action is necessary and appropriate. However, American Enterprise
Life will not make any substitution or change without any necessary
approval of the SEC or state insurance departments. American Enterprise
Life will notify owners within five days of any substitution or change.
(2) the terms and conditions of the securities issued by the trust.
No change in the terms and conditions of an issued and outstanding Policy
can be made without the consent of the Owner, other than as set forth in
paragraph (1) above.
(3) the provisions of any indenture or agreement of the trust.
Not applicable.
(4) the identity of the depositor, trustee or custodian.
There is no provision requiring notice to, or consent of, the Owners
with respect to any change in the identity of the Variable Account's
depositor. However, American Enterprise Life's obligations under the Policy
cannot be transferred to any other entity without the consent of the Owner.
(h) Whether the consent of security holder for action to be taken
concerning any change in:
(1) the composition of the assets of the trust.
Consent of the Owners is not required when changing the underlying
securities of any of the Subaccounts. However, to change these securities,
approval of the Securities and Exchange Commission is required in
compliance with Section 26(b) of the Investment Company Act of 1940.
(2) the terms and conditions of the securities issued by the trust.
No change in the terms and conditions of the Policy may be made without the
consent of the Owner, except as provided in paragraph (1) above.
(3) the provisions of any indenture or agreement of the trust.
Not applicable.
(4) the identity of the depositor, trustee or custodian.
The answer to Item 10(g)(4) is incorporated by reference.
(i) Any other principal feature of the securities issued by the trust or
any other principal right, privilege or obligation not covered by
subdivisions (a) to (g) or by any other item in this form.
Policy 1
Premiums
Payment of premiums:
In applying for the policy, the owner must decide how much they intend to
pay and how often they will make payments. During the first several policy
years until the policy value is sufficient to cover the surrender charge,
American Enterprise Life requires that premiums sufficient to keep the no
lapse guarantee in effect be paid to keep the policy in force.
<PAGE>
The owner may schedule payments annually, semiannually or quarterly.
(Payment at any other interval must be approved by American Enterprise
Life.) American Enterprise Life shows this premium schedule in the policy.
The scheduled premium serves only as an indication of the owner's intent as
to the frequency and amount of future premium payments. The owner may skip
scheduled premium payments at any time if the cash surrender value is
sufficient to pay the monthly deduction or if sufficient premiums have been
paid to keep the no lapse guarantee in effect.
The owner may also change the amount and frequency of scheduled premium
payments by written request. American Enterprise Life reserves the right to
limit the amount of such changes. Any change in the premium amount is
subject to applicable tax laws and regulations.
Although the owner has flexibility in paying premiums, the amount and
frequency of the payments will affect the policy value, cash surrender
value and length of time the policy will remain in force, as well as affect
whether the no lapse guarantee remains in effect.
Premium limitations:
The owner may make unscheduled premium payments at any time and in any
amount of at least $25. American Enterprise Life reserves the right to
limit the number and amount of unscheduled premium payments. No premium
payments, scheduled or unscheduled, are allowed on or after the insured's
attained insurance age 100.
Also, in order to receive favorable tax treatment under the Code, premiums
paid during the life of the policy must not exceed certain limitations. To
comply with the Code, American Enterprise Life can either refuse excess
premiums as they are paid or refund excess premiums with interest no later
than 60 days after the end of the policy year in which they were paid.
Allocation of premiums:
As of the policy date, American Enterprise Life will allocate the net
premiums to the account(s) the owner has selected in their application. At
that time, American Enterprise Life will begin to assess the various loads,
fees, charges and expenses.
American Enterprise Life converts any amount that the owner allocates to a
subaccount into accumulation units of that subaccount. Similarly, when the
owner transfers value between subaccounts, American Enterprise Life
converts accumulation units in one subaccount into a cash value, which
American Enterprise Life then converts into accumulation units of the
second subaccount.
Insurability: Before issuing the owners policy, American Enterprise Life
requires satisfactory evidence of the insurability of the person whose life
the owner proposes to insure (the owner or someone else). [American Express
Financial Advisor's] underwriting department will review the owner's
application and any medical information or other data required to determine
whether the proposed individual is insurable under American Enterprise
Life's underwriting rules. The owner's application may be declined if
American Enterprise Life determines the individual is not insurable and
American Enterprise Life will return any premiums the owner has paid.
Age limit: American Enterprise Life generally will not issue a policy where
the proposed insured is over the insurance age of 85. It may, however, do
so at its sole discretion.
Proceeds payable upon death
American Enterprise Life will pay a benefit to the beneficiary of the
policy when the insured dies.
<PAGE>
If that death is prior to the insured's attained insurance age 100, the
amount payable is based on the specified amount and death benefit option
the owner has selected, as described below, less any indebtedness.
If the insured's death is on or after the attained insurance age 100, the
amount payable is the cash surrender value.
Option 1 (level amount): Under this option, the policy's value is part of
the specified amount. The Option 1 death benefit is the greater of:
o the specified amount on the date of the insured's death; or
o the applicable percentage of the policy value on the date of the
insured's death, if that death occurs on a valuation date, or an the
next valuation date following the date of death.
The percentage is designed to ensure that the policy meets the provisions
of federal tax law, which require a minimum death benefit in relation to
policy value for your policy to qualify as life insurance.
Option 2 (variable amount): Under this option, the policy value is added to
the specified amount. The Option 2 death benefit is the greater of:
o the policy value plus the specified amount; or
o the applicable percentage of policy value on the date of the insureds
death, if that death occurs on a valuation date, or on the next
valuation date following the date of death.
Information Concerning the Securities Underlying the Trust's Securities
11. Describe briefly the kind or type of securities comprising the unit of
specified securities in which the security holders have an interest.
The securities to be held in the Subaccounts will be shares of the Funds
described in Item 12.
12 If the trust is the issuer of periodic payment plan certificates, and if
any underlying securities were issued by another investment company,
furnish the following information for each such company:
(a) Name of Company.
IDS Life Series Fund, Inc.
AIM Variable Insurance Funds, Inc.
Putnam Variable Trust
Warburg Pincus Trust
[New funds to be filed by amendment]
(b) Name and principal address of depositor.
Investment manager of IDS Life Series Fund, Inc.
IDS Life Insurance Company
IDS Tower 10
Minneapolis, MN 55440
<PAGE>
Investment manager of Putnam Variable Trust:
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
Investment adviser of AIM Variable Insurance Funds, Inc.:
AIM Advisors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046-1173
Investment adviser of Warburg Pincus Trust
Warburg Pincus Asset Management
466 Lexington Avenue
New York, New York 10017-3147
[New funds to be filed by amendment]
(c) Name and principal business address of trustee or custodian.
For IDS Life Series Fund, Inc.:
American Express Trust Company
P.O. Box 534
Minneapolis, Minnesota 55440-0534
acts as custodian for the Fund.
For Putnam Variable Trust:
Putnam Fiduciary Trust Company, a wholly-owned subsidiary of
Putnam Investments, Inc.
One Post Office Square
Boston, MA 02109
acts as custodian for
For A I M Variable Insurance Funds, Inc.:
State Street Bank & Trust Co.
225 Franklin Street
Boston, MA 02110
acts as custodian for
For Warburg Pincus Trust:
PNC Bank, National Association
1600 Market Street
Philadelphia, PA 19103
acts as custodian for
<PAGE>
(d) Name and principal business address of principal underwriter.
Not Applicable.
(e) The period during which the securities of such Company have been the
underlying securities.
IDS Life Series Fund, Inc. commenced operations on January 20, 1986. The
International Equity Portfolio commenced operations on October 28, 1994.
The Equity Income Portfolio commenced operations on May 3, 1999.
[New funds to be filed by amendment
Information Concerning Loads, Fees, Charges and Expenses
13. (a) Furnish the following information with respect to each load, fee,
expense or charge to which (1) principal payments, (2) underlying
securities, (3) distributions, (4) cumulated or reinvested distributions or
income, and (5) redeemed or liquidated assets or the trust's securities are
subject:
(A) the nature of such load, fee, expense or charge;
(B) the amount thereof;
(C) the name of the person to whom such amounts are paid and his
relationship to the trust;
(D) the nature of the services performed by such person in consideration
for such load, fee, expense or charge.
<TABLE>
<CAPTION>
(1) Principal Payments. (Gross Premium)
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Policy 1 Nature of Charge Amount Person to whom Services
Paid/Relationship
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
<S> <C> <C> <C> <C>
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Premium Expense Charge 3.0% of premium American Enterprise Distribution of
payment. Life policy; State and
governmental taxes
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Administrative Charge $7 per month. American Enterprise Administrative Expense
Life
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Cost of Insurance The monthly cost of American Enterprise Insurance Protection
insurance rate plus Life
any other flat extra
insurance charges
times the death
benefit minus the
policy value divided
by 1,000. Cost of
Policy Riders
Determined by nature
and amount of
American Enterprise
Life Optional
Insurance riders
attached to policy.
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Partial Surrender Fee $25 (or 2% of the American
Enterprise Transactional Costs amount
surrendered, Life if less.)
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Surrender Charge Determined based on American Enterprise Sales, issue and
the insured's Life underwriting expense
insurance age, sex, at issue
risk classification
and initial specified
amount. Decreases
annually until it is
zero at the beginning
of the 16th policy
year.
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
<PAGE>
(2) Underlying Security
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Investment Management The Money Market IDS Life Investment management
Fee Portfolio of American and services
Enterprise Life described in Agreement
Series Fund, Inc.
pays a fee on an
annual basis equal to
0.50% of its daily
aggregate average net
assets.
The Equity, Equity Income, Income, Managed
and Government Securities Portfolios of
American Enterprise Life Series Fund, Inc.
each pay a fee on an annual basis equal to
0.70% of their aggregate average daily net
assets.
The International
Equity Portfolio of
American Enterprise
Life Series Fund,
Inc. pays a fee on an
annual basis equal to
0.95% of its
aggregate average
daily net assets.
Putnam VT New Opportunities Fund Class IA
shares pays a fee on an annual basis of
0.58% of its average daily net assets.
Putnam VT High Yield Fund - Class IB
shares pays a fee on an annual basis of
0.66% of its average daily net assets.
[New funds to be
filed by amendment]
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
Non-Advisory Expense IDS Life Series Fund, American Enterprise Non-Advisory Expenses
Charges Inc. will reimburse Life described in Agreement
American Enterprise Life for non-advisory
expenses.
- ------------- ----------------------- ----------------------- ----------------------- -----------------------
</TABLE>
(3) Distributions.
Not applicable. See paragraph (4) below.
(4) Cumulated or reinvested distributions or income.
All investment income and other distributions are reinvested in Fund
shares at net asset value.
(5) Redeemed or liquidated assets.
Not applicable
<PAGE>
(b) For each installment payment type of periodic payment plan certificate
of the trust, furnish the following information with respect to sales
load and other deductions from principal payments.
Policy 1
See Item 13(a)(1).
(c) State the amount of total deductions as a percentage of the net amount
invested for each type of security issued by the trust. State each
different sales charge available as a percentage of the public offering
price and as a percentage of the net amount invested. List any special
purchase plans or methods established by rule or exemptive order that
reflect scheduled variations in, or elimination of, the sales load and
identify each class of individuals or transactions to which such plans
apply.
Policy 1
Not applicable
(d) Explain the reasons for any difference in the price at which securities
are offered generally to the public, and the price at which securities
are offered for any class of transactions to any class or group of
individuals, including officers, directors, or employees of the
depositor, trustee custodian or principal underwriter.
Not Applicable.
(e) Furnish a brief description of any loads, fees, expenses or charges not
covered in Item 13(a) which may be paid by security holders in
connection with the trust or its securities.
Policy 1
Mortality and expense risk charge
This charge applies only to the subaccounts and not to the fixed account.
It is equal, on an annual basis, to 0.9% of the average daily net asset
value of the subaccounts.
Computed daily, the charge compensates American Enterprise Life for:
o Mortality risk -- the risk that the cost of insurance charge will
be insufficient to meet actual claims.
o Expense risk -- the risk that the policy fee and the surrender
charge may be insufficient to cover the cost of administering the
policy.
Any profit from the mortality and expense risk charge would be available to
American Enterprise Life for any proper corporate purpose including, among
others, payment of sales and distribution expenses, which we do not expect
to be covered by the premium expense charge and surrender charges. American
Enterprise Life will make up any further deficit from its general assets.
(f) State whether the depositor, principal underwriter, custodian or
trustee, or any affiliated person of the foregoing may receive profits
or other benefits not included in answer to Item 13(a) or 13(b) through
the sale or purchase of the trust's securities or interests in
underlying securities, and described fully the nature and extent of
such profits or benefits.
<PAGE>
Not as principal underwriter or depositor will American Enterprise Life,
nor any affiliated person of American Enterprise Life, receive any profit
or other benefit not included in the answer to Item 13(a) or 13(b) through
the sale or purchase of the policy or fund shares. IDS Life will pay to
American Express Financial Corporation a fee equal on an annual basis to
0.25% (0.50% for International Equity Portfolio) of the Fund's average net
assets for investment advice relative to the Fund under an Investment
Advisory Agreement between American Express Financial Corporation and IDS
Life.
(g) State the percentage that the aggregate annual charges and deductions
for maintenance and other expenses of the trust, bear to the dividend
and interest income from the trust property during the period covered
by the financial statements filed herewith.
Not applicable.
(h) For life insurance company separate accounts registered as unit
investment trusts issuing variable life insurance contracts:
If proceeds from explicit sales loads will not cover the expected costs of
distributing the contracts, identify the source from which the shortfall,
if any, will be paid. If any shortfall is to be made up from assets from
the Insurance Company's general account, disclose, if applicable, the
extent to which any amounts paid by the Insurance Company may consist,
among other things, of proceeds derived from mortality and expense risk
charges deducted from the account.
Policy 1
Mortality and expense risk charge
This charge applies only to the subaccounts and not to the fixed account.
It is equal, on an annual basis, to 0.9% of the daily net asset value of
the subaccounts.
Computed daily, the charge compensates American Enterprise Life for:
o Mortality risk -- the risk that the cost of insurance charge will be
insufficient to meet actual claims.
o Expense risk -- the risk that the policy fee and the surrender charge
may be insufficient to cover the cost of administering the policy.
Any profit from the mortality and expense risk charge would be available to
American Enterprise Life for any proper corporate purpose including, among
others, payment of sales and distribution expenses, which American
Enterprise Life does not expect to be covered by the premium expense charge
and surrender charges. Any further deficit will have to be made up from
American Enterprise Life's general assets.
Information Concerning the Operations of the Trust
14. Describe the procedure with respect to applications (if any), and the
issuance and authentication of the trust's securities, and state the
substance of the provisions of any indenture or agreement pertaining
thereto.
A person desiring to purchase a Policy must complete an application on a
form provided by American Enterprise Life and submit it to the Home Office
of American Enterprise Life. If the applicant meets the prescribed
standards, a Policy will be issued.
<PAGE>
15. Describe the procedure with respect to the receipt of payments from
purchasers of the trust's securities and the handling of the proceeds
thereof, and state the substance of the provisions of any indenture or
agreement pertaining thereto.
Policy 1
The Owner selects in the application what specified amount of insurance and
the death benefit amount. The Owner also designates a beneficiary; and
states how the premiums are to be allocated to among the fixed and/or the
subaccounts of the Variable Account. Until the date that an application is
approved by [American Express Financial Advisor's] Home Office underwriting
department, the premiums received by American Enterprise Life are held in
American Enterprise Life's Fixed Account and interest at the current Fixed
Account rate is credited on the net premiums (gross premium received minus
the Premium Expense Charge). As of the date that American Enterprise Life's
Home Office underwriting department approves the application, the net
premiums plus interest accrued thereon will be allocated to the Fixed
Account and/or one or more of the subaccounts, in accordance with the
allocation instructions received from the Owner in the application. At that
time, the various loads, fees, charges and expenses will begin to be
assessed.
16. Describe the procedure with respect to the acquisition of underlying
securities and the disposition thereof, and state the substance of the
provisions of any indenture or agreement pertaining thereto.
Policy 1
The Owner selects in the application what specified amount of insurance and
the death benefit amount. The Owner also designates a beneficiary; and
states how the premiums are to be allocated to among the fixed and/or the
subaccounts of the Variable Account. Until the date that an application is
approved by [American Express Financial Advisor's] Home Office underwriting
department, the premiums received by American Enterprise Life are held in
IDS Life's Fixed Account and interest at the current Fixed Account rate is
credited on the net premiums (gross premium received minus the Premium
Expense Charge). As of the date that American Enterprise Life's Home Office
underwriting department approves the application, the net premiums plus
interest accrued thereon will be allocated to the Fixed Account and/or one
or more of the Subaccounts, in accordance with the allocation instructions
received from the Owner in the application. For amounts allocated to the
Subaccounts, American Enterprise Life applies the Policy Value so allocated
to the purchase of Fund shares or units of the Trust at their net asset
value determined as of the end of the Valuation Period during which the
written directions to make the allocation are received by American
Enterprise Life at its Home Office. Fund shares or units of the Trust may
be redeemed by American Enterprise Life to permit the payment of insurance
benefits, amounts requested for surrender, loan payments, interest charges
on loans, surrender charges and fees and other purposes contemplated by the
Policy.
17. (a) Describe the procedure with respect to withdrawal or redemption by
security holders.
Any surrender by an Owner may be made by a request in writing to the Home
Office of American Enterprise Life. American Enterprise Life will determine
the Surrender Value as of the end of the Valuation Period during which the
request is received. See the response to item 13(a) for information
concerning surrender charges and fees. The Surrender Value will be paid
within seven days after the Owner's written request is received by American
Enterprise Life at its Home Office, however American Enterprise Life
reserves the right to defer any payment of surrender value in excess of the
specified amount if:
o the payments derive from a premium payment made by a check that has not
cleared the banking system (we have not collected good payment);
o the NYSE is closed (other than customary weekend and holiday closings);
<PAGE>
o in accordance with SEC rules, trading on the NYSE is restricted or,
because of an emergency, it is not practical to dispose of securities
held in the subaccount or determine the value of the subaccount's net
assets.
Any surrenders of the Policy Value from the Fixed Account may be postponed
for up to 6 months, in Policy 1. If American Enterprise Life postpones
payment for more than 30 days, it will pay the owner interest on the amount
surrendered at an annual rate of 3% for the period of postponement.
(b) Furnish the names of any persons who may redeem or repurchase, or are
required to redeem or repurchase, the trust's securities or underlying
securities from security holders, and the substance of the provisions
of any indenture or agreement pertaining thereto.
American Enterprise Life is required to honor surrender requests as
described in Items 10(c) and 17(a).
The Fund is required to redeem Fund shares at net asset value at the
request of American Enterprise Life, and to make payment therefor to the
Variable Account within seven days of the receipt of the redemption
request.
(c) Indicate whether repurchased or redeemed securities will be canceled or
may be resold.
A totally surrendered Policy will be canceled.
18. (a) Describe the procedure with respect to the receipt, custody and
disposition of the income and other distributable funds of the trust
and state the substance of the provisions of any indenture or agreement
pertaining thereto.
All income and other distributable funds of each Subaccount investing in
the Fund are reinvested in shares of the appropriate Fund Portfolio and are
added to the assets of that Subaccount.
(b) Describe the procedure, if any, with respect to the reinvestment of
distributions to security holders and state the substance of the
provisions of any indenture or agreement pertaining thereto.
Not applicable.
(c) If any reserves or special funds are created out of income or
principal, state with respect to each such reserve or fund the purpose
and ultimate disposition thereof, and describe the manner of handling
the same.
At the present time, American Enterprise Life does not intend to establish
any reserves for federal income taxes which may be attributable to the
Variable Account.
(d) Submit a schedule showing the periodic and special distributions which
have been made to security holders during the three years covered by
the financial statements filed here with. State for each such
distribution the aggregate amount and amount per share. If
distributions from sources other than current income have been made,
identify each such other source and indicate whether such distribution
represents the return of principal payments to security holders. If
payments other than cash were made, describe the nature thereof.
Not applicable.
<PAGE>
19. Describe the procedure with respect to keeping of records and accounts of
the trust, the making of reports and the furnishing of information to
security holders, and the substance of the provisions of any indenture or
agreement pertaining thereto.
American Enterprise Life has primary responsibility for all administration
of the Policy and will maintain the records and books of the Variable
Account.
Included in these records are the name, address, taxpayer identification
number and other pertinent information for each Owner, and the number and
Policy Value records of each Policy. American Enterprise Life will also
keep, as custodian, the records of all securities transactions entered into
with the Fund and the Trust for the purchase and sale of the Fund shares by
the Variable Account.
20. State the substance of the provisions of any indenture or agreement
concerning the trust with respect to the following:
(a) Amendments to such indenture or agreement.
Not applicable.
(b) The extension or termination of such indenture or agreement.
Not applicable.
(c) The removal or resignation of the trustee or custodian, or the failure
of the trustee or custodian, or the failure of the trustee or custodian
to perform its duties, obligations and functions.
Not applicable.
(d) The appointment of a successor trustee and the procedure if a successor
trustee is not appointed.
Not applicable.
(e) The removal or resignation of the depositor, or the failure of the
depositor to perform its duties, obligations and functions.
There are no provisions relating to the appointment of a successor
depositor.
(f) The appointment of a successor depositor and the procedure if a
successor depositor is not appointed.
There are no provisions regarding the removal or resignation of
American Enterprise Life, nor its failure to perform its duties,
obligations, and functions as depositor.
<PAGE>
21. (a) State the substance of the provisions of any indenture or agreement
with respect to loans to security holders.
Policy 1
Policy loans
The Owner may borrow against the policy by written or telephone request.
American Enterprise Life will process the loan request at the end of the
valuation period during which the request is received. (Loans by telephone
are limited to $50,000.)
Interest rate: The interest rate for policy loans is 6% per year. After the
10th anniversary American Enterprise Life expects to reduce the loan
interest to 4% per year. Interest is charged daily and due at the end of
the policy year.
Minimum loan: $500 ($200 for Connecticut residents.)
Maximum loan:
o In Texas, 100% of the policy value in the fixed account, minus a
pro rata portion of surrender charges.
o In Alabama, 100% of the policy value minus surrender charges.
o In all other states, 90% of the policy value minus surrender charges.
American Enterprise Life will compute the maximum loan value as of the end
of the valuation period during which it receives the loan request. The
amount available at any time for a new loan is the maximum loan value less
any existing indebtedness. When American Enterprise Life computes the
amount available American Enterprise Life reserves the right to deduct from
the loan value interest for the period until the next policy anniversary
and monthly deductions that American Enterprise Life will take until the
next policy anniversary.
Payment of loaned funds: Generally, American Enterprise Life will pay loans
within seven days after it receives the request with certain exceptions.
"See Deferral of payments.".
Allocation of loans to accounts: If the owner does not specify whether the
loan is to come from the fixed account or the subaccounts, IDS Life will
take it from the subaccounts and the fixed account on a pro-rata basis,
minus indebtedness. When American Enterprise Life makes a loan from a
subaccount, American Enterprise Life redeems accumulation units and
tranfers the proceeds into the fixed account. American Enterprise Life will
credit the loaned amount with 4.0% annual interest.
Repayments: American Enterprise Life will allocate to subaccounts and/or
the fixed account using the premium allocation percentages in effect unless
the owner tells us otherwise. Repayments must be in amounts of at least
$25.
<PAGE>
Deferral of payments:
American Enterprise Life reserves the right to defer payments of cash
surrender value, policy loans or variable death benefits in excess of the
specified amount if:
o the payments derive from a premium payment made by a check that has not
cleared the banking system (American Enterprise Life has not collected
good payment);
o the NYSE is closed (other than customary weekend and holiday closings);
o in accordance with SEC rules, trading on the NYSE is restricted or,
because of an emergency, it is not practical to dispose of securities
held in the subaccount or determine the value of the subaccount's net
assets.
American Enterprise Life may delay the payment of any loans or surrenders
from the fixed account up to six months from the date American Enterprise
Life receives the request. If American Enterprise Life postpones the
payment of surrender proceeds more than 30 days, it will pay the owner
interest on the amount surrendered at an annual rate of 3% for the period
of postponement.
(b) Furnish a brief description of any procedure or arrangement by which
loans are made available to security holders by the depositor, principal
underwriter, trustee or custodian, or any affiliated person of the
foregoing.
Policy 1
Allocation of loans to accounts: If the owner does not specify whether the
loan is to come from the fixed account or the subaccounts, American
Enterprise Life will take it from the subaccounts and the fixed account in
proportion to their values, minus indebtedness. When American Enterprise
Life makes a loan from a subaccount, American Enterprise Life redeems
accumulation units and the proceeds transferred into the fixed account.
American Enterprise Life will credit the loaned amount with 4.0% annual
interest.
Repayments: We will allocate loan repayments to subaccounts and/or the
fixed account using the premium allocation percentages in effect unless you
tell us otherwise. Repayments must be in amounts of at least $25.
Overdue interest: If the owner does not pay accrued interest when it is
due, American Enterprise Life will increase the amount of indebtedness in
the fixed account to cover the amount due. Interest added to a policy loan
will be charged the same interest rate as the loan itself. American
Enterprise Life will take the interest from the fixed account and
subaccounts on a pro-rata basis,
Effects of policy loans: If the owner does not repay the loan, it will
reduce the death benefit and cash surrender value. Even if the owner does
repay it, the loan can have a permanent effect on death benefits and policy
values, because money borrowed against the subaccounts will not share in
the investment results of the relevant fund(s)
(c) If such loans are made, furnish the aggregate amounts of loans
outstanding at the end of the last fiscal year, the amount of interest
collected during the last fiscal year allocated to the depositor, principal
underwriter, trustee or custodian or affiliated person of the foregoing and
the aggregate amount of loans in default at the end of the last fiscal year
covered by financial statements filed herewith.
For Policy 1 there was no outstanding loan balance.
<PAGE>
22. State the substance of the provisions of any indenture or agreement with
respect to limitations on the liabilities of the depositor, trustee or
custodian, or any other party to such indenture or agreement.
Not applicable.
23. Describe any bonding arrangement for officers, directors, partners or
employees of the depositor or principal underwriter of the trust, including
the amount of coverage and the type of bond.
[The officers, employees and sales force of American Enterprise Life are
bonded in the amount of $100 million, by virtue of a blanket fidelity bond
issued by Saint Paul Fire and Marine to American Enterprise Life's parent,
American Express Financial Corporation. Saint Paul Fire and Marine provides
the first $30 million. An additional $15 million in fidelity coverage is
extended by a second policy issued by Vigilant Insurance Co. to the
directors, officers, and employees of American Enterprise Life. An
additional $20 million in fidelity coverage is extended by a third policy
issued by National Union to the directors, officers, and employees of
American Enterprise Life. An additional $4 million in fidelity coverage is
extended by a fourth policy issued by Saint Paul Fire and Marine to the
directors, officers, and employees of American Enterprise Life. An
additional $11.5 million in fidelity coverage is extended by a fifth policy
issued by Continental to the directors, officers, and employees of American
Enterprise Life. An additional $12.5 million in fidelity coverage is
extended by a sixth policy issued by Gulf Insurance Company to the
directors, officers, and employees of American Enterprise Life. An
additional $7 million in fidelity coverage is extended by a final policy
issued by Reliance Insurance Company to the directors, officers and
employees of American Enterprise Life.]
24. State the substance of any other material provisions of any indenture or
agreement concerning the trust or its securities and a description of any
other material functions or duties of the depositor, trustee or custodian
not stated in Item 10 or Items 14 to 23 inclusive.
The Owner may assign the Policy at any time. No such assignment is
effective as to American Enterprise Life, however, unless it is filed with
American Enterprise Life at its Home Office for recording.
<PAGE>
III.
ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
Organization and Operations of Depositor
25. State the form or organization of the depositor of the trust, the name of
the state or other sovereign power under the laws of which the depositor
was organized and the date of organization.
American Enterprise Life is a stock life insurance company organized under
Minnesota law on August 7, 1957. Prior to April 2, 1973, American
Enterprise Life was called Investors Syndicate Life Insurance and Annuity
Company.
26. (a) Furnish the following information with respect to all fees received by
the depositor of the trust in connection with the exercise of any functions
or duties concerning securities of the trust during the period covered by
the financial statements filed herewith.
Policy 1
Not applicable
(b) Furnish the following information with respect to any fee or any
participation in fees received by the depositor from any underlying
investment company or any affiliated person or investment adviser of such
company.
The underlying investment company, IDS Life Series Fund, Inc., pays
American Enterprise Life for managing its portfolio, providing
administrative services, and serving as transfer agent. [For the fiscal
year 1998, the aggregate amount of this management fee was ________.]
27. Describe the general character of the business engaged in by the depositor
including a statement as to any business other than that of depositor of
the trust. If the depositor acts or has acted in any capacity with respect
to any investment company or companies other than the trust, state the name
or names of such company or companies, their relationship, if any, to the
trust, and the nature of the depositor's activities therewith. If the
depositor has ceased to act in such named capacity, state the date of and
circumstances surrounding cessation.
American Enterprise Life is a stock life insurance company organized under
the laws of the state of Indiana in 1981. It conducts a conventional life
insurance business and issues the life insurance policies.
Officials and Affiliated Persons of Depositor
28. (a) Furnish as at latest practicable date the following information with
respect to the depositor of the trust, with respect to each officer,
director, or partner of the depositor, and with respect to each natural
person directly or indirectly owning, controlling or holding with Power to
vote 5% or more of the outstanding voting securities of the depositor.
Not applicable.
<PAGE>
(b) Furnish a brief statement of the business experience during the last
five years of each officer, director or partner of the depositor.
Directors.
The directors of American Enterprise Life, together with their principal
occupation during the last five years, are shown below.
<TABLE>
<CAPTION>
Name and Address Principal Occupation
<S> <C>
James E. Choat Director and chief executive officer since 1996; senior
IDS Tower 10 vice-president - Institutional Products Group, AEFA, 1994 to 1997;
Minneapolis, MN senior vice president, Field management, AEFA, 1993 to 1997.
Richard W. Kling Director and chairman of the board since March 1994.
IDS Tower 10
Minneapolis, MN
Paul S. Mannweiler Director since 1986. Partner at Locke Reynolds Boyde & Weisell since
IDS Tower 10 1980.
Minneapolis, MN
Paula R. Meyer Director and executive vice president, Assured Assets since ____.
IDS Tower 10
Minneapolis, MN
</TABLE>
William A. Stoltzmann Director since September 1989; vice president, general
counsel and IDS Tower 10 secretary since 1985. vice president and assistant
general counsel, Minneapolis, MN AEFC, since November 1985.
Principal Officers.
The following are principal officers of American Enterprise Life. Each
officer serves at the pleasure of the Board of Directors.
Jeffrey S. Horton
Vice president and treasurer since December 1997; vice President and
corporate treasurer, AEFC, since December 1997; controller, American
Express Technologies Financial Services, AEFC, from July 1997 to December
1997; Controller, Risk Management Products, AEFC, from June 1990 to May
1994.
Companies Owning Securities of Depositor
29. Furnish as at latest practicable date the following information with
respect to each Company which directly or indirectly owns, controls or
holds with power to vote 5% or more of the outstanding voting securities of
the depositor.
American Enterprise Life, an Indiana corporation, is a wholly owned
subsidiary of IDS Life Insurance Company (IDS Life), which is wholly-owned
subsidiary of American Express Financial Corporation (AEFC); AEFC, a
Delaware corporation, is a wholly owned subsidiary of American Express
Company.
<PAGE>
Controlling Persons
30. Furnish as at latest practicable date the following information with
respect to any person, other than those covered by Items 28, 29 and 42 who
directly or indirectly controls the depositor.
None.
Compensation of Officers and Directors of Depositor Compensation of Officers of
Depositor
31. Furnish the following information with respect to the remuneration for
services paid by the depositor during the last fiscal year covered by
financial statements filed herewith:
(a) directly to each of the officers or partners of the depositor directly
receiving the three highest amounts of remuneration:
[to be filed by amendment]
(b) directly to all officers or partners of the depositor as a group
exclusive of persons whose remuneration is included under Item 31(a),
stating separately the aggregate amount paid by the depositor itself and
the aggregate amount paid by all the subsidiaries:
$__________ in total excluding the amount in 31(a).
(c) indirectly or through subsidiaries to each of the officers or partners
of the depositor:
1998 - $__________.
Compensation of Directors
32. Furnish the following information with respect to the remuneration reported
under Item 31, paid by the depositor during the last fiscal year covered by
financial statements filed herewith:
(a) the aggregate direct remuneration to directors:
$----------
(b) indirectly or through subsidiaries to directors:
See Item 32(a).
33. (a) Furnish the following information with respect to the aggregate amount
of remuneration for services of all employees of the depositor (exclusive
of persons whose remuneration is reported in Items 31 and 32) who received
remuneration in excess of $10,000 during the last fiscal year covered by
financial statements filed herewith from the depositor and any of its
subsidiaries.
Not applicable - see Item 31.
<PAGE>
(b) Furnish the following information with respect to remuneration for
services paid directly during the last fiscal year covered by financial
statements filed herewith to the following classes of persons (exclusive of
those persons covered by Item 33(a)): (1) sales managers, branch managers,
district managers and other persons supervising the sale of registrant's
securities; (2) salesmen, sales agents, canvassers and other persons making
solicitations but not ln supervisory capacity; (3) administrative and
clerical employees; and (4) others (specify). If a person is employed in
more than one capacity, classify according to the predominant type of work.
Not applicable - see Item 31.
Compensation to Other Persons
34. Furnish the following information with respect to the aggregate amount of
compensation for services paid any persons (exclusive of persons whose
remuneration is reported in Items 31, 32 and 33), whose aggregate
compensation in connection with services rendered with respect to the trust
in all capacities exceed $10,000 during the last fiscal year covered by
financial statements filed herewith from the depositor and any of its
subsidiaries.
Not applicable - see Item 31.
<PAGE>
IV.
DISTRIBUTION AND REDEMPTION OF SECURITIES
Distribution of Securities
35. Furnish the names of the states in which sales of the trust's securities
(A) are currently being made, (B) are presently proposed to be made, and
(C) have been discontinued, indicating by appropriate letter the status
with respect to each state.
[American Enterprise Life currently sells Policy 1, and intends to sell it
in the District of Columbia and all states except New York.]
36. If sales of the trust's securities have at any time since January 1, 1936
been suspended for more than a month, describe briefly the reasons for such
suspension.
Not applicable.
37. (a) Furnish the following information with respect to each instance where
subsequent to January 1, 1937, any Federal or state governmental officer,
agency or regulatory body denied authority to distribute securities of the
trust, excluding a denial which was merely a procedural step prior to any
determination by such officer, etc., and which denial was subsequently
rescinded.
(1) Name of officer, agency or body.
(2) Date of denial.
(3) Brief statement of reasons given for denial.
Not applicable.
(b) Furnish the following information with regard to each instance where,
subsequent to January 1, 1937, the authority to distribute securities of
the trust has been revoked by any Federal or state governmental officer,
agency or regulatory body.
(1) Name of officer, agency or body.
(2) Date of revocation.
(3) Brief statement of reason given for revocation.
Not applicable.
38. (a) Furnish a general description of the method of distribution of
securities of the trust.
[American Express Financial Advisors] may be deemed to be the principal
underwriter of the Policy and will perform all sales and administrative
duties. American Enterprise Life will distribute the Policy through
different broker-dealers and a sales force it shares with American Express
Financial Advisors Inc. [American Express Financial Advisors] is itself a
registered broker/dealer, and is a member of the National Association of
Securities Dealers, Inc. (NASD). Members of the [American Enterprise Life
sales force are trained and licensed to sell both the conventional
insurance products of the Company, as well as its variable life insurance
and annuity contracts.]
<PAGE>
(b) State the substance of any current selling agreement between each
principal underwriter and the trust or the depositor, including a statement
as to the inception and termination dates of the agreement, any renewal and
termination provisions, and any assignment provisions.
Not applicable.
(c) State the substance of any current agreement or arrangements of each
principal underwriter with dealers, agents, salesmen, etc., with respect to
commissions, and overriding commissions, territories, franchises,
qualifications and revocations. If the trust is the issuer of periodic
payment plan certificates, furnish schedules of commissions and the bases
thereof. In lieu of a statement concerning schedules of commissions, such
schedules of commissions may be filed as Exhibit A(3)(c).
Policy 1
American Enterprise Life will pay a commission of up to ___ percent of
__________.
[to be filed by amendment.]
Information Concerning Principal Underwriter
39. (a) State the form of organization of each principal underwriter of
securities of the trust, the name of the state or other sovereign power
under the laws of which each underwriter was organized and the date of
organization.
See Item 25.
(b) State whether any principal underwriter currently distributing
securities of the trust is a member of the National Association of
Securities Dealers, Inc.
American Express Financial Advisors, the principal underwriter, is a member
of the NASD.
40. (a) Furnish the following information with respect to all fees received by
each principal underwriter of the trust from the sale of securities of the
trust and any other functions in connection therewith exercised by such
underwriter in such capacity or otherwise during the period covered by the
financial statement filed herewith.
See Item 26(a).
(b) Furnish the following information with respect to any fee or any
participation in fees received by each principal underwriter from any
underlying investment company or any affiliated person or investment
adviser of such company:
(1) The nature of such fee or participation.
(2) The name of the person making payment.
(3) The nature of the services rendered in consideration for such fee or
participation.
(4) The aggregate amount received during the last financial year covered by
the financial statements filed herewith.
See Item 26(b).
<PAGE>
41. (a) Describe the general character of the business engaged in by each
principal underwriter, including a statement as to any business other than
the distribution of securities of the trust. If a principal underwriter
acts or has acted in any capacity with respect to any investment company or
companies, their relationship, if any, to the trust and the nature of such
activities. If a principal underwriter has ceased to act in such named
capacity, state the date of and circumstances surrounding such cessation.
See Item 27.
(b) Furnish as at latest practicable date the address of each branch office
of each principal underwriter currently selling securities of the trust and
furnish the name and residence address of the person in charge of such
office.
Not applicable.
(c) Furnish the number of individual salesmen of each principal underwriter
through whom any of the securities of the trust were distributed for the
last fiscal year of the trust covered by the financial statements filed
herewith by such salesmen in such year.
Not applicable.
42. Furnish as at latest practicable date the following information with
respect to each principal underwriter currently distributing securities of
the trust and with respect to each of the officers, directors or partners
of such underwriter.
Not Applicable.
43. Furnish, for the last fiscal year covered by the financial statements filed
herewith, the amount of brokerage commissions received by any principal
underwriter who is a member of a national securities exchange and who is
currently distributing the securities of the trust or effecting
transactions for the trust in the portfolio securities of the trust.
Not Applicable.
44. (a) Furnish information with respect to the method of valuation used by the
trust for purposes of determining the offering price to the public of
securities issued by the trust or the valuation of shares or interests in
the underlying securities acquired by the holder of a periodic payment plan
certificate.
Policy 1
Policy value
The value of the owner's policy is the sum of values in the fixed account
and each subaccount of the variable account.
Fixed account value
The value in the fixed account on the policy date (when the policy is
issued) equals:
o the portion of the owner's initial net premium that the owner has
allocated to the fixed account; minus
o the portion of the monthly deduction for the first policy month
that the owner has allocated to the fixed account.
<PAGE>
On any later date, the value in the fixed account equals:
o the value on the previous monthly date; plus
o net premiums allocated to the fixed account since the last monthly
date; plus
o any transfers to the fixed account from the subaccounts,
including loan transfers, since the last monthly date; plus
o accrued interest on all of the above; plus
o any policy value credit allocated to the fixed account; minus
o any transfers from the fixed account to the subaccounts, including
loan repayment transfers, since the last monthly date; minus
o any partial surrenders or partial surrender fees allocated to the
fixed account since the last monthly date; minus
o interest on any transfers or partial surrenders, from the date of
the transfer or surrender to the date of calculation; minus
o any portion of the monthly deduction for the coming month that is
allocated to the fixed account if the date of calculation is a
monthly date.
Subaccount values
The value in each subaccount changes daily, depending on the investment
performance of the funds in which that subaccount invests and on other
factors detailed below. There is no guaranteed minimum subaccount value.
The owner bears the entire investment risk.
Calculation of subaccount value: The value of each subaccount on the policy
date equals:
o the portion of your initial net premium allocated to the subaccount;
minus
o the portion of the monthly deduction for the first policy month that
you have allocated to that subaccount.
The value on each subaccount on each valuation date equals:
o the value of the subaccount on the preceding valuation date,
multiplied by the net investment factor for the current valuation
period (explained below); plus
o net premiums received and allocated to the subaccount during the
current valuation period; plus o any transfers to the subaccount (from
the fixed account or other subaccounts, including loan repayment
transfers) during the period; plus
o any policy value credit allocated to the subaccount; minus
o any transfers from the subaccount including loan transfers during the
current valuation period; minus
o any partial surrenders and partial surrender fees allocated to the
subaccount during the period; minus
o any portion of the monthly deduction allocated to the subaccount
during the period.
The net investment factor measures the investment performance of a
subaccount from one valuation period to the next. Because performance may
fluctuate, the value of a subaccount may increase or decrease from day to
day.
Accumulation units: American Enterprise Life converts the policy value
allocated to each subaccount into accumulation units. Each time the owner
directs a premium payment or transfer policy value into one of the
subaccounts, a certain number of accumulation units are credited to the
owner's policy for that subaccount. Conversely, each time the owner takes a
partial surrender or transfer value out of a subaccount, American
Enterprise Life subtracts a certain number of accumulation units.
<PAGE>
Accumulation units are the true measure of investment value in each
subaccount. For subaccounts investing in the funds, they're related to, but
not the same as, the net asset value of the corresponding funds. The dollar
value of each accumulation unit can rise or fall daily, depending on the
investment performance of the underlying funds, and on certain charges.
Here's how unit values are calculated:
Number of units: To calculate the number of units for a particular
subaccount, American Enterprise Life divides your investment (net premium
or transfer amount) by the current accumulation unit value.
Accumulation unit value: The current accumulation unit value for each
subaccount equals the last accumulation unit value times the current net
investment factor.
Net investment factor: Determined at the end of each valuation period,
this factor equals
(a divided by b) - c, where:
(a) equals:
o net asset value per share of the fund; plus
o per-share amount of any dividend or capital gain
distribution made by the relevant fund to the subaccount;
plus
o any credit or minus any charge for reserves to cover any
tax liability resulting from the investment operations of
the subaccount.
(b) equals:
o net asset value per share of the fund at the end of the
preceding valuation period; plus
o any credit or minus any charge for reserves to cover any
tax liability in the preceding valuation period.
(c) is a percentage factor representing the mortality and expense risk
charge.
Factors that affect subaccount accumulation units:
Accumulation units may change in two ways; in number and in value. Here are
the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the subaccounts;
o transfers into or out of the subaccount(s);
o partial surrenders and partial surrender fees;
o surrender charges;
o monthly deductions; and/or
o policy value credits
Accumulation unit values will fluctuate due to:
o changes in underlying funds net asset value;
o dividends distributed to the subaccount(s);
o capital gains or losses of underlying funds; o fund operating
expenses; and/or
o mortality and expense risk fees.
<PAGE>
45. Furnish the following information with respect to any suspension of the
redemption rights of the securities issued by the trust during the three
fiscal years covered by the financial statements filed herewith:
(a) by whose action redemption rights were suspended.
(b) the number of days notice given to security holders prior to
suspension of redemption rights.
(c) reason for suspension.
(d) period during which suspension was in effect.
Not applicable.
Redemption Valuation of Securities of the Trust
46. (a) Furnish the following information with respect to the method of
determining the redemption or withdrawal valuation of securities issued by
the trust:
(1) The source of quotations used to determine the value of portfolio
securities.
Net asset values as provided by the Fund's Portfolios or as
provided by the Evaluator.
(2) Whether opening, closing, bid, asked or any other price is used.
Net asset value or unit value as of the end of the appropriate
Valuation Period is used.
(3) Whether price is as of the day of sale or as of any other time.
As of the end of the appropriate Valuation Period.
(4) A brief description of the methods used by registrant for
determining other assets and liabilities including accrual for
expenses and taxes (including taxes on unrealized appreciation).
See Items 13(d), 17(a) and 18(c).
(5) Other items which registrant deducts from the net asset value in
computing redemption value of its securities.
None, other than as set forth in (4) above.
(6) Whether adjustments are made for fractions. Not applicable.
(b) Furnish a specimen schedule showing the components of the
redemption price to the holders of the trust's securities as
at the latest practicable date.
Not Applicable.
Purchase and Sale of Interests to Underlying Securities from and
to Security Holders
<PAGE>
47. Furnish a statement as to the procedure with respect to the maintenance of
a position in the underlying securities or interests in the underlying
securities, the extent and nature thereof and the person who maintains such
a position. Include a description of the procedure with respect to the
purchase of underlying securities or interests in the underlying securities
from security holders who exercise redemption or withdrawal rights and the
sale of such underlying securities and interests in the underlying
securities to other security holders. State whether the method of valuation
of such underlying securities and interests in the underlying securities
differs from that set forth in Items 44 and 46. If any item of expenditure
included in the determination of the valuation is not or may not actually
be incurred or expended, explain the nature of such item and who may
benefit from the transaction.
Policy 1
The Subaccounts will maintain positions in the Fund(s) shares by purchasing
Fund(s) shares at net asset value with premiums in accordance with
instructions from the Owner in the application. The Subaccounts will redeem
Fund(s) shares at net asset value for the purpose of meeting Policy
obligations or making adjustments in reserves held in the Subaccounts.
There is no procedure for the purchase of underlying securities or interest
therein from the Owners who exercise surrender rights.
<PAGE>
V.
INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
48. Furnish the following information as to each trustee or custodian of the
trust.
(a) Name and principal business address:
Not applicable as American Enterprise Life will serve as custodian for the
Variable Account.
(b) Form of organization.
Not applicable as American Enterprise Life will serve as custodian for the
Variable Account.
(c) State or other sovereign power under the laws of which the trustee or
custodian was organized.
Not applicable as American Enterprise Life will serve as custodian for the
Variable Account.
(d) Name of governmental supervising or examining authority.
Not applicable as American Enterprise Life will serve as custodian for the
Variable Account.
49. State the basis for payment of fees or expenses of the trustee or custodian
for services rendered with respect to the trust and its securities, and the
aggregate amount thereof for the last fiscal year. Indicate the person
paying such fees or expenses. If any fees or expenses are prepaid, state
the unearned amounts.
See Item 48.
50. State whether the trustee or custodian or any other person has or may
create a lien on the assets of the trust and, if so, give full particulars,
outlining the substance of the provisions of any indenture or agreement
with respect thereto.
Not applicable.
<PAGE>
VI.
INFORMATION CONCERNING INSURANCE OF HOLDERS OF SECURITIES
51. Furnish the following information with respect to the insurance of holders
of securities:
(a) The name and address of the insurance company.
All insurance elements of the Policy are provided by American Enterprise
Life.
(b) The types of policies and whether individual or group policies.
Policy 1
The Policy is a flexible premium variable life insurance policy and is
issued on an individual basis.
(c) The types of risks insured and excluded.
Under the Policies the Company assumes the risk that insureds covered by
the Policies may die before anticipated and that the charge for this
mortality risk may prove insufficient. The Company assumes an expense risk
that deductions for expenses may not be adequate. Under Policy 1, the
company assumes the risks under the no lapse guarantee if the minimum
monthly premiums are timely paid.
(d) The coverage of the policies.
See Paragraph (c) of this Item.
(e) The beneficiaries of such policies and the uses to which the proceeds
of policies must be put.
The recipient of the benefits of the insurance undertakings described in
Item 51(c) is either the designated primary beneficiary, any contingent
beneficiaries, or the estate of the insured as stated in the application
for the Policy. There is no limitation on the use of the proceeds.
(f) The terms and manner of cancellation and of reinstatement.
The insurance undertakings described in Item 51(c) are integral parts of
the Policy and may not be canceled while the Policy remains in effect. See
Item 10(d) with respect to lapse of the Policy.
(g) The method of determining the amount of premiums to be paid by holders
of securities.
Policy 1
Payment of premiums:
In applying for the policy, the owner decides how much he/she intends to
pay and how often the owner will make payments. During the first several
policy years until the policy value is sufficient to cover the surrender
charge, American Enterprise Life requires that premiums sufficient to keep
the no lapse guarantee in effect be paid to keep the policy in force.
The owner may schedule payments annually, semiannually or quarterly.
(Payment at any other interval must be approved by American Enterprise
Life.) American Enterprise Life shows this premium schedule in the policy.
<PAGE>
The scheduled premium serves only as an indication of the owner's intent as
to the frequency and amount of future premium payments. The owner may skip
scheduled premium payments at any time if the cash surrender value is
sufficient to pay the monthly deduction or if the owner has paid sufficient
premiums to keep the no lapse guarantee in effect.
The owner may also change the amount and frequency of scheduled premium
payments by written request. American Enterprise Life reserves the right to
limit the amount of such changes. Any change in the premium amount is
subject to applicable tax laws and regulations.
Although the owner has have flexibility in paying premiums, the amount and
frequency of the payments will affect the policy value, cash surrender
value and length of time the policy will remain in force, as well as affect
whether the no lapse guarantee remains in effect.
Keeping the policy in force
No lapse guarantee
The NLG provides that the policy will remain in force for 5 policy years
even if the cash surrender value is insufficient to pay the monthly
deduction. The NLG will stay in effect as long as:
o the sum of premiums paid; minus
o partial surrenders; minus
o outstanding indebtedness; equals or exceeds
o the minimum monthly premiums due since the policy date
The minimum monthly premium is shown in the policy.
If, on a monthly date, the owner has not paid enough premiums to keep the
no lapse guarantee in effect, the no lapse guarantee will terminate. In
addition, the policy will lapse (terminate) if the cash surrender value is
less than the amount needed to pay the monthly deduction.
Grace period
If on a monthly date the cash surrender value of the policy is less than
the amount needed to pay the next monthly deduction and the NLG is not in
effect the owner will have 61 days to pay the required premium amount. If
the owner does not pay required premium, the policy will lapse.
American Enterprise Life will mail a notice to the owner's last known
address, requesting payment of a premium needed to keep the policy in
force. If American Enterprise Life receives this premium before the end of
the 61-day grace period, American Enterprise Life will use the payment to
cover all monthly deductions and any other charges then due. American
Enterprise Life will add any balance to the policy value and allocate in
the same manner as other premium payments.
If a policy lapses with outstanding indebtedness, any excess of the
outstanding indebtedness over the premium paid generally will be taxable to
the owner. If the insured dies during the grace period, any overdue monthly
deductions will be deducted from the death benefit.
(h) The amount of aggregate premiums paid to the insurance company during
the fiscal year.
Not applicable.
(i) Whether any person other than the insurance company receives any part
of such premiums, the name of each such person and the amount
involved, and the nature of the services rendered therefor.
<PAGE>
No person other than American Enterprise Life receives any part of the
premiums or the amounts deducted for the mortality and expense risk charge
or other applicable charges. American Enterprise Life may, from time to
time, enter into reinsurance treaties with other insurers whereby these
insurers may agree to reimburse American Enterprise Life for mortality
expenses. However, any such arrangements do not affect the Policy.
(j) The substance of any other material provisions of any indenture or
agreement of the trust relating to insurance.
Not applicable.
<PAGE>
VII.
POLICY OF REGISTRANT
52. (a) Furnish the substance of the provisions of any indenture or agreement
with respect to the conditions upon which and the method of selection
by which particular portfolio securities must or may be eliminated
from the assets of the trust or must or may be replaced by other
portfolio securities. If an investment adviser or other person is to
be employed in connection with such selection, elimination or
substitution, state the name of such person, the nature of any
affiliation to the depositor, trustee or custodian, and any principal
underwriter, and the amount of remuneration to be received for such
services. If any particular person is not designated in the indenture
or agreement, describe briefly the method of selection of such person.
American Enterprise Life may change the funds from which the
subaccounts buy shares if: the existing funds become unavailable; or
in the judgment of American Enterprise Life, the funds are no longer
suitable for the subaccounts. If these situations occur, we have the
right to substitute the funds held in the subaccounts for other
registered, open-end management investment companies as long as we
believe it would be in the best interest of persons having voting
rights under the policies.
In the event of any such substitution or change, American Enterprise
Life may, without the consent or approval of owners, amend the policy
and take whatever action is necessary and appropriate. However,
American Enterprise Life will not make any substitution or change
without any necessary approval of the SEC or state insurance
departments. American Enterprise Life will notify owners within five
days of any substitution or change.
(b) Furnish Information with respect to each transaction involving the
elimination of any underlying security during the period covered by
the financial statements filed herewith.
Not applicable.
(c) Describe the policy of the trust with respect to the substitution and
elimination of the underlying securities of the trust with respect to:
(1) the grounds for elimination and substitution;
(2) the type of securities which may be substituted for any underlying
security;
(3) whether the acquisition of such substituted security or securities
would constitute the concentration of investment in a particular
industry or group of industries or would conform to a policy of
concentration of investment in a particular industry or group of
industries;
(4) whether such substituted securities may be the securities of any other
investment company; and
(5) the substance of the provisions of any indenture or agreement which
authorize or restrict the policy of the registrant in this regard.
See Item 52(a).
(d) Furnish a description of any policy (exclusive of policies covered by
Paragraphs (a) and (b) herein) of the trust which is deemed a matter of
fundamental policy and which is elected to be treated as such.
None.
<PAGE>
Regulated Investment Company
53. (a)State the taxable status of the trust.
The Policies are designed for use by individuals in meeting their insurance
and financial security needs. The ultimate effect of the Federal income
taxes on the Policy Value, on benefit payments and on the economic benefit
to the Policy Owner or Beneficiary depends on both American Enterprise
Life's tax status and upon the tax status of the individual concerned.
American Enterprise Life is taxed as a life insurance company under the
Code. Since the variable Account is not a separate entity from American
Enterprise Life for tax purposes, and its operations form a part of
American Enterprise Life, it will not be taxed separately as a "regulated
investment company" under Subchapter M of the Code.
(b) State whether the trust qualified for the last taxable year as a
regulated investment company as defined in Section 851 of the Internal
Revenue Code of 1954, and state its present intention with respect to such
qualification during the current taxable year.
Not applicable.
<PAGE>
VIII.
FINANCIAL AND STATISTICAL INFORMATION
54. If the trust is not the issuer of periodic payment plan certificates,
furnish the following information with respect to each class or series of
its securities.
Not applicable.
55. If the trust is the issuer of periodic payment plan certificates, a
transcript of a hypothetical account shall be filed in approximately the
following form on the basis of the certificate calling for the smallest
amount of payments. The schedule shall cover a certificate of the type
currently being sold assuming that such certificate had been sold at a date
approximately ten years prior to the date of registration or at the
approximate date of organization of the trust.
Policy 1
Policy illustrations
The following tables illustrate how policy values, cash surrender values and
death benefits may change with the investment experience of the subaccount. The
tables show how these amounts might vary, for a 35-year-old male nonsmoker,
under Death Benefit Option 1, if:
o the annual rate of return of the fund is 0%, 6% or 12%.
o the cost of insurance rates and policy fees are current rates or
guaranteed rates and fees.
This type of illustration involves a number of detailed assumptions. To the
extent that the owner's own circumstances differ from those assumed in the
illustrations, the owner's expected results also would differ.
Upon request, American Enterprise Life will furnish the owner with comparable
tables illustrating death benefits, policy values and cash surrender values
based on the actual age of the person the owner proposes to insure and on an
initial specified amount and premium payment schedule. In addition, after the
owner has purchased a policy, the owner may request illustrations based on
policy values at the time of request.
Understanding the illustrations:
Rates of return: assumes uniform, gross, after-tax, annual rates of 0%, 6% or
12% for the fund. Results would differ depending on allocations among the
subaccounts, if returns averaged 0%, 6% and 12% for the fund as a whole but
differed across portfolios.
Insured: assumes a male insurance age 35, in a standard risk classification,
qualifying for the nonsmoker rate. Results would be lower if the insured were in
a substandard risk classification or did not qualify for the non-smoker rate.
Premiums: assumes a $900 premium is paid in full at the beginning of each policy
year. Results would differ if premiums were paid on a different schedule.
Policy loans and partial withdrawals: assumes that none have been made. (Since
American Enterprise Life assumes indebtedness is zero, the cash surrender value
in all cases equals the policy value minus the surrender charge.)
<PAGE>
Effect of expenses, charges and credits:
The death benefit, policy value and cash surrender value reflect the following
charges:
o Premium expense charge: 3% of each premium payment.
o Cost of insurance charge for the sex, age and rate classification for the
assumed insured.
o Administrative charge: $7 per month.
o Policy value credit: 0.45% for years 11+ on the end of the year asset
value.
o The expenses paid by the fund and charges made against the subaccount as
described below:
The net investment return of the subaccounts shown in the tables is lower than
the gross, after-tax return of the fund because American Enterprise Life
deducted the expenses paid by the fund and charges made against the subaccounts
have been deducted.
These include:
o the daily investment management fee paid by the fund, assumed to be
equivalent to an annual rate of ___% of the fund's average daily net
assets; the assumed investment management fee is approximately equal to a
simple average of the investment management fees of the funds available
under the policy. The actual charges you incur will depend on how you
choose to allocate policy value.
o the daily mortality and expense risk charge, equivalent to 0.9% of the
average daily net asset value of the subaccounts annually.
o a nonadvisory expense charge, assumed to be 0.1% of each fund's average
daily net assets for direct expenses incurred by the fund; currently, this
is the maximum direct expenses the funds will incur after American
Enterprise Life limits the direct expenses of some funds. The actual
charges the owner incurs will depend on how the owner chooses to allocate
the policy.
After deduction of the expenses and charges described above, the illustrated
gross annual investment rates of return correspond to the following approximate
net annual rates of return:
Net annual rate of
Gross annual rate of return return for "Guaranteed
costs assured"
illustration
0% ____%
6 ____
12 ____
Taxes: Results shown in the tables reflect the fact that American Enterprise
Life does not currently charge the subaccounts for federal income tax. If we
take such a charge in the future, the portfolios will have to earn more than
they do now in order to produce the death benefits and policy values
illustrated.
<PAGE>
<TABLE>
<CAPTION>
Illustration
- --------------------------------------------------------------------------------------------------------------------------------
Initial specified amount $100,000 Male age 35 Current costs assumed
Death benefit Option 1 nonsmoker Annual premium $900
- --------------------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value(1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
1 $100,000 $100,000 $100,000
2 $100,000 $100,000 $100,000
3 $100,000 $100,000 $100,000
4 $100,000 $100,000 $100,000
5 $100,000 $100,000 $100,000
6 $100,000 $100,000 $100,000
7 $100,000 $100,000 $100,000
8 $100,000 $100,000 $100,000
9 $100,000 $100,000 $100,000
10 $100,000 $100,000 $100,000
11 $100,000 $100,000 $100,000
12 $100,000 $100,000 $100,000
13 $100,000 $100,000 $100,000
14 $100,000 $100,000 $100,000
15 $100,000 $100,000 $100,000
16 $100,000 $100,000 $100,000
17 $100,000 $100,000 $100,000
18 $100,000 $100,000 $100,000
19 $100,000 $100,000 $100,000
20 $100,000 $100,000 $100,000
age 60 $100,000 $100,000 $100,000
age 65 $100,000 $100,000
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $900 premium is paid at the beginning of each policy year. Values
will be different if premiums are paid in different amounts or with a
different frequency.
The above hypothetical investment results are illustrative only and the owner
should not consider them to be a representation of past or future investment
results. Actual investment results may be more or less than those shown. The
death benefit, policy value and cash surrender value would be different from
those shown if returns averaged 0%, 6% and 12% over a period of years, but
fluctuated above and below those averages for individual policy years. American
Enterprise Life cannot represent that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
<PAGE>
Illustration
- --------------------------------------------------------------------------------------------------------------------------------
Initial specified amount $100,000 Male age 35 Guranteed costs assumed
Death benefit Option 1 nonsmoker Annual premium $900
- --------------------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value(1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
- --------------------------------------------------------------------------------------------------------------------------------
1 $100,000 $100,000 $100,000
2 $100,000 $100,000 $100,000
3 $100,000 $100,000 $100,000
4 $100,000 $100,000 $100,000
5 $100,000 $100,000 $100,000
6 $100,000 $100,000 $100,000
7 $100,000 $100,000 $100,000
8 $100,000 $100,000 $100,000
9 $100,000 $100,000 $100,000
10 $100,000 $100,000 $100,000
11 $100,000 $100,000 $100,000
12 $100,000 $100,000 $100,000
13 $100,000 $100,000 $100,000
14 $100,000 $100,000 $100,000
15 $100,000 $100,000 $100,000
16 $100,000 $100,000 $100,000
17 $100,000 $100,000 $100,000
18 $100,000 $100,000 $100,000
19 $100,000 $100,000 $100,000
20 $100,000 $100,000 $100,000
age 60 $100,000 $100,000 $100,000
age 65 $100,000 $100,000
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $900 premium is paid at the beginning of each policy year. Values
will be different if premiums are paid in different amounts or with a different
frequency.
The above hypothetical investment results are illustrative only and the owner
should not consider them to be a representation of past or future investment
results. Actual investment results may be more or less than those shown. The
death benefit, policy value and cash surrender value would be different from
those shown if returns averaged 0%, 6% and 12% over a period of years, but
fluctuated above and below those averages for individual policy years. American
Enterprise Life cannot represent that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
</TABLE>
56. If the trust is the issuer of periodic payment plan certificates, furnish by
years for the period covered by the financial statements filed herewith in
respect of certificates sold during such period, the following information for
each fully paid type of each installment payment type of periodic payment plan
certificate currently being issued by the trust.
Not applicable.
<PAGE>
57. If the trust is the issuer of periodic payment plan certificates, furnish by
years for the period covered by the financial statements filed herewith the
following information for each installment payment type of periodic payment plan
certificate currently being issued by the trust.
Not applicable.
58. If the trust is the issuer of periodic payment plan certificates, furnish
the following information for each installment type of periodic payment plan
certificate outstanding as of the latest practicable date.
Not applicable.
59. Financial Statements:
Financial Statements of the Accounts
[to be filed by amendment]
Financial Statements of the Depositor
[to be filed by amendment]
<PAGE>
A. (1) Resolution of Board of Directors of American Enterprise Life
authorizing the Trust to be filed by amendment.
(2) Not applicable.
(3) (a) Not applicable.
(b) Form of Sales Representative agreements to be filed by amendment.
(1)
(2)
(3)
(c) Schedules of Sales Commissions to be filed by amendment.
(4) Not applicable.
(5) (a) Flexible Premium Variable Life Insurance Policy (SIG-VUL) to be
filed by amendment.
(6) (a) Certificate of Incorporation of American Enterprise Life to be
filed by amendment.
(b) Amended Bylaws of American Enterprise Life to be filed by
amendment.
(7) Not applicable.
(8) (a) Form of Investment Management and Services Agreement between
American Enterprise Life and IDS Life Series Fund, Inc. to be
filed by amendment.
(b) Form of Investment Advisory Agreement between American Enterprise
Life and American Express Financial Advisors Inc. relating to the
Variable Account to be filed by amendment.
(c) Addendum to Investment Management and Services Agreement to
be filed by amendment.
(d) Addendum to Investment Advisory Agreement to be filed by
amendment.
(e) Participation agreements to be filed by amendment.
(9) None.
(10)(a) Application form for the Flexible Premium Variable Life Insurance
Policy (SIG-VUL) to be filed by amendment.
(11)Memorandum on Transfer and Redemption Procedures, and Method of
Computing Adjustments on Conversions to be filed by amendment.
(12)(a) Power of attorney dated July 28, 1999 is filed electronically
herewith.
B. (1) Not applicable.
(2) Not applicable.
C. Not applicable.
<PAGE>
Pursuant to the requirements of the Investment Company Act of 1940, the
depositor of the Registrant has cause this Amendment No. 1 to the Registration
Statement to be duly signed on behalf of the Registrant in Minneapolis,
Minnesota on July 30, 1999.
American Enterprise Variable Life Account
BY American Enterprise Life Insurance Company
(Depositor)
By /s/ Richard W. Kling*
Richard W. Kling
Director and Chairman of the Board
American Enterprise Life Insurance Company
By /s/ Mary Ellyn Minenko
Mary Ellyn Minenko
Assistant Secretary
American Enterprise Life Insurance Company
Attest: /s/ William A. Stoltzmann
William A. Stoltzmann
Director, Vice President, General Counsel and Secretary
American Enterprise Life Insurance Company
* Signed pursuant to Power of Attorney dated July 29, 1999 filed
electronically herewith as an exhibit.
Exhibit Index
(12)(a) Power of attorney dated July 28, 1999 is filed electronically herewith.
AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
POWER OF ATTORNEY
City of Minneapolis
State of Minnesota
Each of the undersigned, as a director and/or officer of American Enterprise
Life Insurance Company (AEL), on behalf of the below listed registrants
previously have filed registration statements and amendments thereto pursuant to
requirements of the Securities Act of 1933 and the Investment Company Act of
1940 with the Securities and Exchange Commission:
<TABLE>
<CAPTION>
1933 Act 1940 Act
Reg. Number ----------------------
Reg. Number
<S> <C> <C> <C> <C>
American Enterprise Variable Annuity Account 333-74865 811-7195
American Express Signature Variable AnnuitySM (SIG-VA)
- -------------------------------------------------------------------------
American Enterprise Variable Life Account
American Express Signature Variable Universal Life (SIG-VUL)
</TABLE>
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn Minenko,
Christopher R. Long, Eileen J. Newhouse, Eric L. Marhoun and Timothy S. Meehan
or any one of them, as his/her attorney-in-fact and agent, to sign for him/her
in his/her name, place and stead any and all filings, applications (including
applications for exemptive relief), periodic reports, registration statements
for existing or future products (with all exhibits and other documents required
or desirable in connection therewith), other documents, and amendments thereto
and to file such filings, applications, periodic reports, registration
statements, other documents, and amendments thereto with the Securities and
Exchange Commission, and any necessary states, and grants to any or all of them
the full power and authority to do and perform each and every act required or
necessary in connection therewith.
Dated the 29th day of July, 1999.
/s/ James F. Choat
James F. Choat
President and Chief Executive Officer
Director
/s/ Jeffrey S. Horton
Jeffrey S. Horton
Vice President and Treasurer
/s/ Richard W. Kling
Richard W. Kling
Chairman of the Board
Director
Paul S. Mannweiler
Director
/s/ Paula R. Meyer
Paula R. Meyer
Executive Vice President, Assured Assets
Director
/s/ William A. Stolzmann
William A. Stoltzmann
Vice President, General Counsel and Secretary
Director
/s/ Philip C. Wentzel
Philip C. Wentzel
Vice President and Controller