Supplement Dated July 24, 2000*
to the Prospectus dated May 1, 2000
of American Express New Solutions Variable Annuity(SM) 2040355 A (06/00)
The following information applies to contracts purchased in the state of
Pennsylvania.
1. The reference on page one of the prospectus to "Individual or Group
Flexible Premium Deferred Combination Fixed/Variable Annuity" is
changed to "Individual Flexible Premium Deferred Variable Annuity."
2. The one-year fixed account is not available under contracts purchased
in Pennsylvania. Any reference in this prospectus to the one-year fixed
account, and any contract features or benefits associated with the
one-year fixed account are deleted.
3. The Guarantee Period Accounts are not available under contracts
purchased in Pennsylvania. Any reference in this prospectus to the
Guarantee Period Accounts, and any contract features or benefits
associated with the Guarantee Period Accounts are deleted.
4. The minimum initial purchase payment (not including Systematic
Investment Plans) is changed from $5,000 to $2,000.
5. The following subsection replaces the subsection on the "Special
dollar-cost averaging program" that was added to the "Making the Most
of Your Contract" section of the prospectus by supplement on May 1,
2000:
Special dollar-cost averaging program
You may elect to allocate $10,000 or more of your initial purchase
payment to this program.
We will credit your initial purchase payment with interest at the
current guaranteed annual rate in effect on the date of your
allocation. We will change the rate from time to time at our discretion
and the rate will be based on competition. Once the rate is set, it
does not change.
The rate is credited on the balance remaining in the dollar-cost
averaging fixed account and is not credited after we transfer the value
to the subaccounts. Monthly, we transfer amounts out of the dollar-cost
averaging fixed account into the subaccounts you selected. You can
choose from either the six month or the twelve month program.
All amounts are transferred out within the period you chose.
You may not elect to participate in this program if you also elect
automatic rebalancing.
You may terminate participation in the program at any time. If you do
so, you will no longer receive the guaranteed annual rate on any
remaining balance in the dollar-cost averaging fixed account. We will
transfer your remaining balance in the dollar-cost averaging fixed
account to the subaccounts you chose in the same proportion your
interest in each subaccount bears to your total contract value.
We can modify the terms of this program or discontinue this program at
any time. Any modification will not affect amounts already in the
program.
240355-10 A (07/00)
*Valid until April 30, 2001.
