AMERICAN SKANDIA LIFE ASSURANCE CORP UAR ACCT B CLASS 7, N-4, 1999-12-29

AMERICAN SKANDIA LIFE ASSURANCE CORP UAR ACCT B CLASS 7
N-4, 1999-12-29

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FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON DECEMBER 29, 1999

REGISTRATION NO. 333-[ ] INVESTMENT COMPANY ACT NO. 811-09705

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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION VARIABLE ACCOUNT B
(CLASS 7 SUB-ACCOUNTS)
(Exact Name of Registrant)

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(Name of Depositor)

ONE CORPORATE DRIVE, SHELTON, CONNECTICUT 06484
(Address of Depositor's Principal Executive Offices)

(203) 926-1888
(Depositor's Telephone Number)

M. PRISCILLA PANNELL, CORPORATE SECRETARY
ONE CORPORATE DRIVE, SHELTON, CONNECTICUT 06484
(Name and Address of Agent for Service of Process)

Copy To:
T. RICHARD KENNEDY, ESQ.
GENERAL COUNSEL
ONE CORPORATE DRIVE, SHELTON, CONNECTICUT 06484 (203) 925-6922

Approximate Date of Proposed Sale to the Public:

MAY 1, 2000 OR AS SOON AS PRACTICABLE FOLLOWING THE EFFECTIVE DATE OF THIS
REGISTRATION STATEMENT.

It is proposed that this filing become effective: (check appropriate space)

__ immediately upon filing pursuant to paragraph (b) of Rule 485
__ on __________ pursuant to paragraph (b) of Rule 485
__ 60 days after filing pursuant to paragraph (a) (i) of Rule 485
__ on ___________pursuant to paragraph (a) (i) of Rule 485
__ 75 days after filing pursuant to paragraph (a) (ii) of Rule 485
__ on ______________pursuant to paragraph (a)(ii) of Rule 485

If appropriate, check the following box:

__ This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
================================================================================
CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933
<TABLE>
<CAPTION>

PROPOSED PROPOSED
MAXIMUM MAXIMUM

AMOUNT OFFERING AGGREGATE AMOUNT OF

TITLE OF SECURITIES TO BE PRICE OFFERING REGISTRATION
TO BE REGISTERED REGISTERED PER UNIT PRICE FEE

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<S> <C> <C>

American Skandia Life Assurance

Corporation Annuity Contracts Indefinite* Indefinite* $0

====================================================================================================================================
*Pursuant to Rule 24f-2 of the Investment Company Act of 1940

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</TABLE>
Registrant has registered an indefinite number or amount of securities under the
Securities Act of 1933 pursuant to Rule 24f-2 of the Investment Company Act of
1940. The Rule 24f-2 Notice for Registrant's fiscal year 1999 will be filed
within 90 days of the close of the fiscal year.

REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS
MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A
FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOMES EFFECTIVE IN ACCORDANCE WITH THE PROVISIONS OF SECTION
8(A) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL
BECOME EFFECTIVE ON SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SAID SECTION
8(A), MAY DETERMINE.

- --------------------------------------------------------------------------------
VIA-T (Class 7)

VIA-T n4 cr
<TABLE>
<CAPTION>
CROSS REFERENCE SHEET PURSUANT TO RULE 495(a)

<S> <C> <C> <C>
N-4 Item No. Prospectus Heading

1. Cover Page Cover Page

2. Definitions Glossary of Terms

3. Synopsis or Highlights What are Some of the Key Features of the Annuity?
Highlights, Summary of Contract Fees and Charges

4. Condensed Financial Information Not Applicable

5. General Description of Registrant, Depositor Who Is American Skandia?
and Portfolio Companies What Are Separate Accounts?

6. Deductions Summary of Contract Fees and Charges,
Fees and Charges

7. General Description of Variable Annuity Contracts Highlights, Purchasing Your Annuity

8. Annuity Period Managing Your Annuity, Access to Cash Value

9. Death Benefit Annuity Benefits

10. Purchases and Contract Value Purchasing Your Annuity, Managing Your Annuity
Access to Cash Value

11. Redemptions Access to Cash Value

12. Taxes Tax Considerations

13. Legal Proceedings Not Applicable

14. Table of Contents of the Statement of Additional Information Available Information,
Contents of the Statement of Additional Information

SAI Heading

15. Cover Page Statement of Additional Information

16. Table of Contents Table of Contents

17. General Information and History General Information Regarding American Skandia
Life Assurance Corporation

18. Services Independent Auditors,
Legal Experts

19. Purchase of Securities Being Offered Noted in Prospectus under Purchasing Your Annuity
and Managing Your Annuity

20. Underwriters Principal Underwriter

(Continued)

CROSS REFERENCE SHEET PURSUANT TO RULE 495(a)

N-4 Item No. SAI Headings

21. Calculation of Performance Data Calculation of Performance Data

22. Annuity Payments Noted in Prospectus under Access to Cash Value

23. Financial Statements Appendix A

Part C Heading

24. Financial Statements and Exhibits Financial Statements
and Exhibits

25. Directors and Officers of the Depositor Noted in Prospectus under Executive
Officers and Directors

26. Persons Controlled by or Under Persons Controlled By or
Common Control with the Under Common Control with the
Depositor or Registrant Depositor or Registrant

27. Number of Contractowners Number of Contractowners

28. Indemnification Indemnification

29. Principal Underwriters Principal Underwriters

30. Location of Accounts and Records Location of Accounts
and Records

31. Management Services Management Services

32. Undertakings Undertakings
</TABLE>

VIA (Class 7

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
One Corporate Drive, Shelton, Connecticut 06484

This Prospectus describes a single premium variable immediate annuity (the
"Annuity") offered by American Skandia Life Assurance Corporation ("American
Skandia", "we", "our" or "us"). The Annuity may be offered as an individual
annuity contract or as an interest in a group annuity. This Prospectus describes
the important features of the Annuity and what you should consider before
purchasing the Annuity. A Statement of Additional Information is also available
from us, without charge, upon your request. The CONTENTS OF THE STATEMENT OF
ADDITIONAL INFORMATION ARE DESCRIBED ON PAGE __. THE ANNUITY OR CERTAIN OF ITS
INVESTMENT OPTIONS MAY NOT BE AVAILABLE IN ALL STATES. VARIOUS RIGHTS AND
BENEFITS MAY DIFFER BETWEEN STATES TO MEET APPLICABLE LAWS AND/OR REGULATIONS.
Certain capitalized terms are either defined in the Glossary of Terms or in the
context of the particular section of this Prospectus.

WHY WOULD I CHOOSE TO PURCHASE THIS ANNUITY?

This Annuity is frequently used for retirement planning. It is generally
intended to be used to "roll-over" existing funds from an IRA, SEP-IRA, Roth IRA
or a Tax Sheltered Annuity (or 403(b)). This Annuity may also be used in
connection with retirement plans that do not qualify under the sections of the
Code noted above. This Annuity also may be used as an annuitization or
settlement option under any deferred annuity or life insurance policy issued by
American Skandia. This Annuity allows you to invest your money in a number of
variable investment options while receiving monthly payments from this Annuity.

WHAT ARE SOME OF THE KEY FEATURES OF THIS ANNUITY?

- - One premium.
- - Monthly payments that may increase, decrease, or remain the same.
- - First payment within 60 days of the date of issue.
- - Monthly payments over the life of the Annuitant or for a certain period,
or for life with a certain period.
- - Several variable investment options. Each investment option is a
Sub-Account of American Skandia Life Assurance Corporation Variable
Account B (Class 7) and invests in a corresponding underlying mutual fund
portfolio. Currently, portfolios of the American Skandia Trust, Montgomery
Variable Series, Wells Fargo Variable Trust, Rydex Variable Trust, INVESCO
Variable Investment Funds, Inc., Evergreen Variable Annuity Trust, and
ProFund VP are offered as investment options.
- - Death Benefit and Settlement options. After an Annuitant's death, the
Annuity may provide Annuity Payments, or, alternatively, a lump sum, to
the Beneficiary(ies), if a certain period was selected.
- - Tax-free transfers between investment options. We also offer several
programs that enable you to manage your Contract Value as your financial
needs and investment performance change.

HOW DO I PURCHASE THIS ANNUITY?

We sell this Annuity through licensed, registered financial professionals. We
may require that you submit certain forms to us before we issue an Annuity,
including evidence of the age of the Annuitant(s). The minimum Premium payment
is $35,000. We may allow a lower minimum Premium payment if this Annuity is used
as an annuitization or settlement option from a deferred annuity or a life
insurance policy issued by American Skandia. No Annuitant may be greater than
age 85 on the issue date of this Annuity.

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THIS ANNUITY IS NOT A DEPOSIT OR AN OBLIGATION OF, OR ISSUED, GUARANTEED OR
ENDORSED BY, ANY BANK, IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, THE
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), THE FEDERAL RESERVE BOARD OR ANY
OTHER AGENCY. AN INVESTMENT IN THIS ANNUITY INVOLVES CERTAIN INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL.

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. PLEASE
READ THIS PROSPECTUS AND THE CURRENT PROSPECTUS FOR THE UNDERLYING MUTUAL FUNDS.
KEEP THEM FOR FUTURE REFERENCE.
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FOR FURTHER INFORMATION CALL 1-800-752-6342.

Prospectus Dated: [DATE], XXXX
Statement of Additional Information Dated: [DATE], XXXX
VIAT-PROS- (XX/XXXX) VIATPROS
<PAGE>

<TABLE>
<CAPTION>
TABLE OF CONTENTS

<S> <C>
GLOSSARY OF TERMS..................................................................................................................4

SUMMARY OF CONTRACT FEES AND CHARGES...............................................................................................6

HIGHLIGHTS.........................................................................................................................8

WHAT IS AN IMMEDIATE ANNUITY?...................................................................................................8
WHAT IS A VARIABLE IMMEDIATE ANNUITY?...........................................................................................8
HOW DOES THIS VARIABLE IMMEDIATE ANNUITY GENERALLY DIFFER FROM SYSTEMATIC WITHDRAWAL PROGRAMS?..................................8

INVESTMENT OPTIONS.................................................................................................................8

WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS?..............................................................8

FEES AND CHARGES..................................................................................................................16

WHAT ARE THE ANNUITY FEES AND CHARGES?.........................................................................................16
WHAT CHARGES ARE DEDUCTED BY THE SEPARATE ACCOUNT?.............................................................................17

PURCHASING YOUR ANNUITY...........................................................................................................17

WHAT ARE THE REQUIREMENTS FOR PURCHASING THE ANNUITY?..........................................................................17
WHAT ARE MY PAYOUT OPTIONS?......................................................................................................
MAY I RETURN THE ANNUITY IF I CHANGE MY MIND?..................................................................................18

MANAGING YOUR ANNUITY.............................................................................................................18

ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN SUB-ACCOUNTS?...........................................................18
MAY I AUTHORIZE MY FINANCIAL REPRESENTATIVE TO MANAGE MY ACCOUNT?..............................................................19
DO YOU OFFER ANY AUTOMATIC REBALANCING PROGRAMS?...............................................................................19

ACCESS TO CASH VALUE..............................................................................................................19

MAY I SURRENDER ALL OR PART OF MY ANNUITY?.....................................................................................19
WHAT IF MY CERTAIN PERIOD IS ZERO, MAY I STILL MAKE A FULL OR PARTIAL SURRENDER?...............................................20

ANNUITY BENEFITS..................................................................................................................20

HOW DO WE CALCULATE YOUR ANNUITY PAYMENT?......................................................................................20
MAY I CONVERT ANNUITY PAYMENTS TO FIXED PAYMENTS?..............................................................................20
WHO RECEIVES THE ANNUITY PAYMENT?..............................................................................................21
WHAT HAPPENS WHEN THE ANUITANT DIES?...........................................................................................21
WHAT HAPPENS WHEN THE OWNER DIES?..............................................................................................21
WHEN DO ANNUITY PAYMENTS FOR A BENEFICIARY START?..............................................................................21
IF ANNUITY PAYMENTS ARE TO BE PAID TO A BENEFICIARY, WHAT DETERMINES THE ANNUITY PAYMENT EACH MONTH AND HOW LONG WILL THE ANNUITY
PAYMENTS BE PAID TO THE BENEFICIARY?...........................................................................................21
WHAT DOCUMENTATION IS REQUIRED TO RECEIVE ANNUITY PAYMENTS?....................................................................21
PAYMENTS AND PAYEES............................................................................................................22

TAX CONSIDERATIONS................................................................................................................22

WHAT ARE SOME OF THE FEDERAL TAX CONSIDERATIONS OF THIS ANNUITY?...............................................................22
TAXATION OF AMERICAN SKANDIA AND THE SEPARATE ACCOUNT..........................................................................22
HOW ARE IMMEDIATE ANNUITIES TREATED UNDER THE TAX CODE?........................................................................22
HOW ARE ANNUITY PAYMENTS TAXED?................................................................................................23
HOW ARE DISTRIBUTIONS OTHER THAN ANNUITY PAYMENTS TAXED?.......................................................................23
ARE THERE TAX CONSIDERATIONS FOR TAX-QUALIFIED RETIREMENT PLANS OR QUALIFIED CONTRACTS?........................................24
HOW ARE DISTRIBUTIONS FROM QUALIFIED CONTRACTS TAXED?..........................................................................24
GENERAL TAX CONSIDERATIONS.....................................................................................................24

GENERAL INFORMATION...............................................................................................................25

HOW WILL I RECEIVE STATEMENTS AND REPORTS?.....................................................................................25
WHO IS AMERICAN SKANDIA?.......................................................................................................26
WHAT ARE SEPARATE ACCOUNTS?....................................................................................................26
MODIFICATION...................................................................................................................26
WHAT IS THE LEGAL STRUCTURE OF THE PORTFOLIOS?.................................................................................27
VOTING RIGHTS..................................................................................................................27
MATERIAL CONFLICTS.............................................................................................................27
TRANSFERS, ASSIGNMENTS OR PLEDGES..............................................................................................27
DEFERRAL OF TRANSACTIONS.......................................................................................................27
WHO DISTRIBUTES ANNUITIES OFFERED BY AMERICAN SKANDIA?.........................................................................28
ADVERTISING....................................................................................................................28
AVAILABLE INFORMATION..........................................................................................................29
HOW TO CONTACT US..............................................................................................................29
INDEMNIFICATION................................................................................................................30
CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION............................................................................30
</TABLE>

<PAGE>

GLOSSARY OF TERMS

Many terms used within this Prospectus are described within the text where they
appear.

ANNUITANT is the person(s) upon whose life(s) the Annuity is issued, if Annuity
Payments are payable for life.

ANNUITY is the contract(s) or group certificate(s) offered pursuant to this
Prospectus.

ANNUITY FACTORS are factors we apply to determine the Schedule of Units. They
depend on the Benchmark Rate, any Certain Period, the Annuitant's attained age
and where permitted by law, gender. Annuity Factors reflect assumptions
regarding the costs we expect to bear in guaranteeing payments. We may use
different factors for different classes of Annuities.

ANNUITY DATE is the date Annuity Payments are to begin.

ANNUITY PAYMENT AMOUNT is the dollar amount of each Annuity Payment. Annuity
Payment Amounts can vary each month.

ANNUITY PAYMENTS are the periodic payments due.

ANNUITY YEARS are continuous 12-month periods commencing on the Issue Date and
each anniversary of the Issue Date.

BENCHMARK RATE is an assumed rate of return used in determining the Annuity
Factors and the Schedule of Units. We currently offer a range of Benchmark
Rates. We may use different rates for different classes of purchasers.

BENEFICIARY(IES) is the person(s) who may receive death proceeds or guaranteed
payment under this Annuity when there is no longer a living Annuitant(s), if you
elect a Certain Period. Unless otherwise specified, the Beneficiary refers to
all persons designated as such for your Annuity.

CASH VALUE is any amount available for surrender or as a lump sum death benefit.

CONTRACT VALUE is the value of each allocation to a Sub-Account, plus any
credits and earnings and/or less any losses, distributions, and charges thereon.
Contract Value is determined separately for each Sub-Account, and then totaled
to determine the Contract Value for your Annuity. For Annuities with life
contingencies we may periodically add credits to your Contract Value from our
general account to assure adequate Units are available to make payments for
life.

CERTAIN PERIOD is a fixed length of time that Annuity Payments are due, whether
or not the Annuitant is still alive. Any Certain Period is determined at the
Issue Date.

CODE is the Internal Revenue Code of 1986, as amended from time to time.

INHERITANCE DATE is the date we receive, at our office, due proof satisfactory
to us of the Annuitant's death and all other requirements that enable us to make
payments for the benefit of a Beneficiary, if applicable. If there are joint
Annuitants, the Inheritance Date refers to the death of the last surviving
Annuitant.

ISSUE DATE is the effective date of your Annuity.

MONTHLY PROCESSING DATE is the date each month Annuity Payments are payable. It
is the same day of the month as the Annuity Date.

NET INVESTMENT PERFORMANCE is the investment performance of the Units in each
Sub-Account.

OWNER is either an entity or person who may exercise the ownership rights
provided under the Annuity. If a certificate representing interests in a group
annuity contract is issued, the rights, benefits, and requirements of, and the
events relating to, an Owner, as described in this Prospectus, will be your
rights as participant in such group annuity contract. Unless otherwise
specified, Owner refers to all persons or entities designated as such for your
Annuity.

PORTFOLIO is a mutual fund or a series of a mutual fund in which the Sub-Account
where you have chosen to allocate your Contract Value invests. When you allocate
Contract Value to a Sub-Account, you are a beneficial owner of Portfolio shares
and have a right to vote on matters that pertain to the Portfolio.

PREMIUM is cash consideration you give to us for certain rights, privileges, and
benefits in relation to our obligations under the Annuity.

SCHEDULE OF UNITS is a schedule which specifies, for each Sub-Account, the
number of Units required to fund the Annuity's benefits as of each Monthly
Processing Date.

SEPARATE ACCOUNT is an account owned by us where we allocate assets in relation
to our obligations pursuant to the Annuity.

SUB-ACCOUNT is a division of a Separate Account where you chose to allocate your
Contract Value.

UNITS are the measure used to determine benefits for a given Sub-Account under
this Annuity. When you choose a Sub-Account the portion of the Net Premium you
allocate to that investment option, or the portion of the Contract Value you
transferred into that investment option at some later date, is converted into
Units.

UNIT VALUE is the measure we use to determine the performance of a Sub-Account.
It is the value of each Unit as of each Valuation Day. It also reflects the
investment experience of the Portfolio minus any insurance charges and any
charges for taxes.

VALUATION DAY is any day the New York Stock Exchange is open for trading or any
other day that the Securities and Exchange Commission requires securities to be
valued.

VALUATION PERIOD is the period of time between the close of business of the New
York Stock Exchange on successive Valuation Days.

"WE", "US", "OUR" OR "THE COMPANY" means American Skandia Life Assurance
Corporation.

"YOU" OR "YOUR" means the Owner.

<PAGE>

SUMMARY OF CONTRACT FEES AND CHARGES

Below is a summary of the fees and expenses we charge for the Annuity. Some
charges are assessed directly against your Annuity while other charges are
deducted daily by us from the Separate Account. The Separate Account charges an
asset-based Insurance Charge, which is the combination of a mortality and
expense risk charge and a charge for administration of the Annuity. We assess a
state tax charge (if applicable) against your Premium at the time it is applied
to the Annuity. We may assess a Transfer Fee for transfers over a maximum number
per year. Each Portfolio assesses a charge for investment management and for
other expenses. A summary is provided on the following page. The prospectus for
each Portfolio provides more detailed information about the expenses for the
Portfolios. All these fees and expenses are described in more detail within this
Prospectus.

<TABLE>
<CAPTION>
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YOUR TRANSACTION EXPENSES

- ------------------------------- ----------------------------------------------------------------- ----------------------------------
TRANSFER FEE $10.00 AFTER THE 12TH transfer each Annuity
Year

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

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ANNUAL EXPENSES OF THE SUB-ACCOUNTS
(as a percentage of the average daily net assets of the Sub-Accounts)

- ------------------------------- ----------------------------------------------------------------- ----------------------------------
Mortality & Expense Risk
Charge 1.10%
Daily
Administration Charge 0.15%

Total Annual Expenses of the 1.25% per year of the value of each Sub-Account
Sub-Accounts*
- ------------------------------- ----------------------------------------------------------------- ----------------------------------
</TABLE>
* The combination of the Mortality and Expense Risk Charges and Administration
Charge is referred to as the "Insurance Charge" elsewhere in this prospectus.

- --------------------------------------------------------------------------------
PORTFOLIO ANNUAL EXPENSES

(as a percentage of the average net assets of the Portfolios)

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

Below are the investment management fees, other expenses, and the total annual
expenses for each Portfolio as of June 30, 1999. The total annual expenses are
the sum of the investment management fee and other expenses. Each figure is
stated as a percentage of the Portfolio's average daily net assets. For certain
of the Portfolios, a portion of the management fee is being waived and/or other
expenses are being partially reimbursed. "N/A" indicates that no portion of the
management fee and/or other expenses is being waived and/or reimbursed. Any
footnotes about expenses appear after the list of all the Portfolios. Those
Portfolios whose name includes the prefix "AST" are portfolios of American
Skandia Trust. The Portfolio information was provided by the Portfolios and has
not been independently verified by us. See the prospectuses or statements of
additional information of the Portfolios for further details.

<PAGE>

<TABLE>
<CAPTION>
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UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES
(as a percentage of the average net assets of the underlying Portfolios)

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

- -------------------------------------------- ---------------- ------------- --------------- -------------- -------------- ----------
MANAGEMENT OTHER ESTIMATED TOTAL Annual Fee Net
Fees Expenses Distribution Portfolio Waivers and Annual
UNDERLYING PORTFOLIO and Service Operating Expense Fund
(12b-1) Expenses Reimbursement Operating
FEES (1) Expenses

- --------------------------------------- ---------------- ------------- --------------- -------------- -------------- -------------
- --------------------------------------- ---------------- ------------- --------------- -------------- -------------- -------------
<S> <C> <C> <C> <C> <C> <C>
AST Founders Passport 1.00% 0.30% 0% 1.30% N/A 1.30%
AST T. Rowe Price International Equity 1.00% 0.25% 0% 1.25% N/A 1.25%
AST AIM INTERNATIONAL EQUITY (2) 0.87% 0.26% 0.14% 1.27% N/A 1.27%
AST American Century International Growth 1.00% 0.65% 0% 1.65% N/A 1.65%
AST MFS GLOBAL EQUITY(3) 1.00% 0.48% 0.06% 1.54% N/A 1.54%
AST Kemper Small-Cap Growth 0.95% 0.60% 0.18% 1.73% 0.20% 1.53%
AST Lord Abbett Small Cap Value 0.95% 0.36% 0% 1.31% N/A 1.31%
AST T. Rowe Price Small Company Value 0.90% 0.21% 0% 1.11% N/A 1.11%
AST NEUBERGER BERMAN MID-CAP GROWTH(4) 0.90% 0.17% 0.08% 1.15% N/A 1.15%
AST NEUBERGER BERMAN MID-CAP VALUE(5) 0.90% 0.15% 0.19% 1.24% N/A 1.24%
AST T. Rowe Price Natural Resources 0.90% 0.26% 0.07% 1.23% N/A 1.23%
AST OPPENHEIMER LARGE-CAP GROWTH(6) 0.90% 0.22% 0.05% 1.17% N/A 1.17%
AST Marsico Capital Growth 0.90% 0.21% 0.06% 1.17% N/A 1.17%
AST JanCap Growth 0.90% 0.14% 0.01% 1.05% 0.02% 1.03%
AST MFS GROWTH(7) 0.90% 0.24% 0.06% 1.20% N/A 1.20%
AST Bankers Trust Managed Index 500 0.60% 0.26% 0% 0.86% 0.06% 0.80%
AST Cohen & Steers Realty 1.00% 0.30% 0.07% 1.37% N/A 1.37%
AST AMERICAN CENTURY INCOME & GROWTH (8) 0.75% 0.25% 0.05% 1.05% N/A 1.05%
AST Lord Abbett Growth and Income 0.75% 0.16% 0.08% 0.99% N/A 0.99%
AST MFS GROWTH WITH INCOME(9) 0.90% 0.23% 0.06% 1.19% N/A 1.19%
AST INVESCO Equity Income 0.75% 0.18% 0.04% 0.97% N/A 0.97%
AST AIM Balanced 0.74% 0.26% 0.08% 1.08% N/A 1.08%
AST American Century Strategic Balanced 0.85% 0.28% 0% 1.13% N/A 1.13%
AST T. Rowe Price Asset Allocation 0.85% 0.24% 0% 1.09% N/A 1.09%
AST T. Rowe Price International Bond 0.80% 0.31% 0% 1.11% N/A 1.11%
AST Federated High Yield 0.75% 0.20% 0% 0.95% N/A 0.95%
AST PIMCO Total Return Bond 0.65% 0.18% 0% 0.83% N/A 0.83%
AST PIMCO Limited Maturity Bond 0.65% 0.21% 0% 0.86% N/A 0.86%
AST Money Market 0.50% 0.16% 0% 0.66% 0.06% 0.60%

Montgomery Variable Series - Emerging 1.25% 0.56% N/A 1.81% 0.06% 1.75%
Markets portfolio

WFVT Equity Income 0.55% 0.62% N/A 1.17% 0.17% 1.00%

Rydex Variable Trust - Nova portfolio 0.74% 1.47% N/A 2.21% 0.03% 2.18%
Rydex Variable Trust - Ursa portfolio 0.90% 1.57% N/A 2.47% 0.17% 2.30%
Rydex Variable Trust - OTC portfolio 0.72% 1.24% N/A 1.96% N/A 1.96%

INVESCO VIF Technology 0.75% 5.85% N/A 6.60% 5.20% 1.40%
INVESCO VIF Health Sciences 0.75% 3.57% N/A 4.32% 3.05% 1.27%
INVESCO VIF FINANCIAL SERVICES(10) 0.75% 0.59% N/A 1.34% 0.09% 1.25%
INVESCO VIF TELECOMMUNICATIONS(10) 0.75% 0.59% N/A 1.34% 0.09% 1.25%
INVESCO VIF Dynamics 0.60% 14.41% N/A 15.01% 13.56% 1.45%

Evergreen VA Global Leaders 0.95% 0.61% N/A 1.56% 0.56% 1.00%
EVERGREEN VA SPECIAL EQUITY(11) 1.45% 0.72% N/A 2.17% 1.17% 1.00%

PROFUND VP EUROPE 30(12) 0.75% 0.78% 0.25% 1.78% N/A 1.78%
PROFUND VP SMALLCAP(12) 0.75% 0.70% 0.25% 1.70% N/A 1.70%
PROFUND VP ULTRAOTC(12) 0.75% 0.66% 0.25% 1.66% N/A 1.66%
- ----------------------------------------- ---------------- ------------- --------------- -------------- -------------- -------------
</TABLE>

1 American Skandia Trust (the "Trust") adopted a Distribution Plan (the
"Distribution Plan") under Rule 12b-1 of the Investment Company Act of 1940
to permit an affiliate of the Trust's Investment Manager to receive
brokerage commissions in connection with purchases and sales of securities
held by Portfolios of the Trust, and to use these commissions to promote
the sale of shares of such Portfolios. The staff of the Securities and
Exchange Commission takes the position that commission amounts received
under the Distribution Plan should be reflected as distribution expenses of
the Portfolios. The Portfolios would pay the same or comparable commission
amounts irrespective of the Distribution Plan; accordingly, total returns
for the Portfolios are not expected to be adversely affected. The
Distribution Fee estimates are derived from data regarding each Portfolio's
brokerage transactions, and the proportions of such transactions directed
to selling dealers, for the period ended June 30, 1999. However, it is not
possible to determine with accuracy actual amounts that will be received
under the Distribution Plan. Such amounts will vary based upon the level of
a Portfolio's brokerage activity, the proportion of such activity directed
under the Distribution Plan, and other factors.
2 Prior to May 3, 1999, the Investment Manager had engaged Putnam Investment
Management, Inc. as Sub-Advisor for the Portfolio (formerly the AST Putnam
Value Growth & Income portfolio).
3 This portfolio commenced operation on October 18, 1999. "Other Expenses"
are based on estimated amounts for the fiscal year ending December 31,
1999.
4 Prior to May 1, 1998, the Investment Manager had engaged Berger Associates,
Inc. as Sub-advisor for the Portfolio (formerly, the Berger Capital Growth
portfolio), for a total Investment Management fee payable at the annual
rate of 0.75% of the average daily nets assets of the Portfolio. As of May
1, 1998, the Investment Manager engaged Neuberger Berman Management
Incorporated as Sub-advisor for the Portfolio, for a total Investment
Management fee payable at the annual rate of 0.90% of the average daily net
assets of the Portfolio. The Management Fee in the above chart reflects the
current Investment Management fee payable to the Investment Manager.
5 Prior to May 1, 1998, the Investment Manager had engaged Federated
Investment Counseling as Sub-advisor for the Portfolio (formerly, the
Federated Utility Income portfolio), for a total Investment Management fee
payable at the annual rate of 0.75% of the first $50 million of the average
daily net assets of the Portfolio, plus .60% of the Portfolio's average
daily net assets in excess of $50 million. As of May 1, 1998, the
Investment Manager engaged Neuberger Berman Management Incorporated as
Sub-advisor for the Portfolio, for a total Investment Management fee
payable at the annual rate of 0.90% of the average daily net assets of the
Portfolio. The Management Fee in the above chart reflects the current
Investment Management fee payable to the Investment Manager.
6 Prior to December 31, 1998, the Investment Manager had engaged Robertson,
Stephens & Company Investment Management, L.P. as Sub-advisor for the
Portfolio (formerly the Robertson Stephens Value + Growth portfolio), and
the total Investment Management fee was at the annual rate of 1.00% of the
average daily net assets of the Portfolio. As of December 31, 1998, the
Investment Manager engaged OppenheimerFunds, Inc. as Sub-advisor for the
Portfolio, and the Investment Management fee is payable at the annual rate
of 0.90% of the first $1 billion of the average daily net assets of the
Portfolio, plus .85% of the Portfolio's average daily net assets in excess
of $1 billion. The Management Fee in the above chart reflects the current
Investment Management fee payable to the Investment Manager.
7 These portfolios commenced operations on October 18, 1999. "Other Expenses"
are based on estimated amounts for the fiscal year ending December 31,
1999.
8 Prior to May 3, 1999, the Investment Manager had engaged Putnam Investment
Management, Inc. as Sub-Advisor for the Portfolio (formerly the AST Putnam
International Equity portfolio).
9 This portfolio commenced operation on October 18, 1999. "Other Expenses"
are based on estimated amounts for the fiscal year ending December 31,
1999.
10 These portfolios commenced operations on August 31, 1999. "Other Expenses"
are estimated amounts for the fiscal year ended December 31, 1999.
11 This portfolio commenced operations on September 30, 1999. "Other Expenses"
are estimated amounts for the fiscal year ended December 31, 1999.
12 These portfolios commenced operations on October 18, 1999. "Other Expenses"
are estimated amounts for the fiscal year ended December 31, 1999.

HIGHLIGHTS

WHAT IS AN IMMEDIATE ANNUITY?

An immediate annuity begins making periodic payments to you within one year
after the Issue Date. This Annuity begins making payments within 60 days of the
Issue date.

WHAT IS A VARIABLE IMMEDIATE ANNUITY?

A variable immediate annuity is an immediate annuity where some or all of the
benefits depend upon the performance of the Sub-Accounts and you assume the
investment risk of such investment performance.

HOW DOES THIS VARIABLE IMMEDIATE ANNUITY GENERALLY DIFFER FROM SYSTEMATIC
WITHDRAWAL PROGRAMS?

This variable immediate annuity offers a guarantee of income payments for life,
for a Certain Period, or for life and Certain Period. This type of annuity
contract is designed to transfer to an insurance company part of the risk at
outliving one's assets if a life payout option is selected. Generally, the
insurer charges the purchaser for taking on this risk of this guarantee. The
difference between this type of annuity contract and a systematic withdrawal
program is that this guarantee and the tax advantages provided is not available
with a program of systematic withdrawals.

INVESTMENT OPTIONS

WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS?

Each variable investment option is a Sub-Account of American Skandia Life
Assurance Corporation Variable Account B (Class 7) (see "What are Separate
Accounts" for more detailed information). Each Sub-Account invests exclusively
in one Portfolio. You should carefully read the prospectus for any Portfolio in
which you are interested. The investment manager for American Skandia Trust is
American Skandia Investment Services, Inc. ("ASISI"), a company affiliated with
us. However, a sub-advisor, as noted below, is engaged to conduct day-to-day
investment decisions. Details about the investment objectives, policies, risks,
costs and management of the Portfolios are found in the Portfolio prospectuses.
There is no guarantee that any Portfolio will meet its investment objective. The
following chart classifies each of the Portfolios based on our assessment of
their investment style (as of the date of this Prospectus). The chart also
provides a short description of each Portfolio's investment objective (in
italics) and a short, summary description of their key policies to assist you in
determining which Portfolios may be of interest to you. The name of the advisor
or sub-advisor for each Portfolio appears next to the description. Those
Portfolios whose name includes the prefix "AST" are Portfolios of American
Skandia Trust.

<TABLE>
<CAPTION>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<S> <C> <C>
CAPITAL AST Money Market: seeks to maximize current income and J.P. Morgan
PRESERVATION maintain high levels of liquidity. The Portfolio attempts to Investment
accomplish its objective by maintaining a dollar-weighted Management Inc.
average maturity of not more than 90 days and by investing
in securities which have effective maturities of not more
than 397 days.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
SHORT-TERM AST PIMCO Limited Maturity Bond: seeks to maximize total Pacific Investment
BOND return consistent with preservation of capital and prudent Management
investment management. The Portfolio will invest in a Company
diversified portfolio of fixed-income securities of varying
maturities. The average portfolio duration of the Portfolio
generally will vary within a one- to- three- year time frame
based on the Sub-advisor's forecast for interest rates.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
LONG-TERM AST PIMCO Total Return Bond: seeks to maximize total return Pacific Investment
BOND consistent with preservation of capital and prudent Management
investment management. The Portfolio will invest in a Company
diversified portfolio of fixed-income securities of varying
maturities. The average portfolio duration of the Portfolio
generally will vary within a three- to six-year time frame
based on the Sub-advisor's forecast for interest rates.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
HIGH YIELD AST Federated High Yield: seeks high current income by Federated Investment
BOND investing primarily in a diversified portfolio of fixed Counseling
income securities. The Portfolio will invest at least 65% of
its assets in lower-rated corporate fixed income securities
("junk bonds"). These fixed income securities may include
preferred stocks, convertible securities, bonds, debentures,
notes, equipment lease certificates and equipment trust
certificates. A fund that invests primarily in lower-rated
fixed income securities will be subject to greater risk and
share price fluctuation than a typical fixed income fund,
and may be subject to an amount of risk that is comparable
to or greater than many equity funds.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
INTERNATIONAL AST T. Rowe Price International Bond: seeks to provide high Rowe Price-Fleming
BOND current income and capital growth by investing in International, Inc.
high-quality, non dollar-denominated government and
corporate bonds outside the United States. The Portfolio
will invest at least 65% of its assets in high-quality,
non-U.S. dollar denominated government and corporate bonds
outside the United States. The Sub-advisor bases its
investment decisions on fundamental market factors, currency
trends, and credit quality. The Portfolio generally invests
in countries where the combination of fixed-income returns
and currency exchange rates appears attractive, or, if the
currency trend is unfavorable, where the Sub-advisor
believes that the currency risk can be minimized through
hedging. The Portfolio may also invest up to 20% of its
assets in below investment-grade, high-risk bonds ("junk
bonds"), including bonds in default or those with the lowest
rating.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
ASSET AST T. Rowe Price Asset Allocation: seeks a high level of T. Rowe Price
ALLOCATION total return by investing primarily in a diversified Associates, Inc.
portfolio of fixed income and equity securities. The
Portfolio normally invests approximately 60% of its total
assets in equity securities and 40% in fixed income
securities. The Sub-advisor concentrates common stock
investments in larger, more established companies, but the
Portfolio may include small and medium-sized companies with
good growth prospects. The fixed income portion of the
Portfolio will be allocated among investment grade
securities, high yield or "junk" bonds, foreign high quality
debt securities and cash reserves.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST American Century Strategic Balanced: seeks capital American Century
growth and current income. The Sub-advisor intends to Investment
maintain approximately 60% of the Portfolio's assets in Management, Inc.
equity securities and the remainder in bonds and other fixed
income securities. Both the Portfolio's equity and fixed
income investments will fluctuate in value. The equity
securities will fluctuate depending on the performance of
the companies that issued them, general market and economic
conditions, and investor confidence. The fixed income
investments will be affected primarily by rising or falling
interest rates and the credit quality of the issuers.

BALANCED ---------------------------------------------------------------------------------------- -----------------------
AST AIM Balanced: seeks to provide a well-diversified A I M Capital
portfolio of stocks and bonds that will produce both capital Management, Inc.
growth and current income. The Portfolio attempts to meet
its objective by investing, normally, a minimum of 30% and a
maximum of 70% of its total assets in equity securities and
a minimum of 30% and a maximum of 70% of its total assets in
non-convertible debt securities. The Sub-advisor will
primarily purchase equity securities for growth of capital
and debt securities for income purposes.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
REAL ESTATE AST Cohen & Steers Realty: seeks to maximize total return Cohen & Steers
(REIT) through investment in real estate securities. The Portfolio Capital Management,
pursues its investment objective by seeking, with Inc.
approximately equal emphasis, capital growth and current
income. Under normal circumstances, the Portfolio will
invest substantially all of its assets in the equity
securities of real estate companies, i.e., a company that
derives at least 50% of its revenues from the ownership,
construction, financing, management or sale of real estate
or that has at least 50% of its assets in real estate. Real
estate companies may include real estate investment trusts
or REITs.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
EQUITY AST INVESCO Equity Income: seeks high current income while INVESCO Funds
INCOME following sound investment practices. Capital growth Group, Inc.
potential is an additional, but secondary, consideration in
the selection of portfolio securities. The Portfolio seeks
to achieve its objective by investing in securities that
will provide a relatively high yield and stable return and
that, over a period of years, may also provide capital
appreciation. The Portfolio normally will invest at least
65% of its assets in dividend-paying common stocks of
domestic and foreign issuers.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
MANAGED AST Bankers Trust Managed Index 500: seeks to outperform the Bankers Trust
INDEX Standard & Poor's 500 Composite Stock Price Index (the "S&P Company
500(R)") through stock selection resulting in different
weightings of common stocks relative to the index. The
Portfolio will invest in the common stocks of companies
included in the S&P 500(R). The majority of the issues held
by the Portfolio will have neutral weightings to the S&P
500(R), but approximately 100 will be over-or under-weighted
relative to the index.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST American Century Income & Growth: seeks capital growth American Century
with current income as a secondary objective. The Portfolio Investment
invests primarily in common stocks that offer potential for Management, Inc.
capital growth, and may, consistent with its investment
objective, invest in stocks that offer potential for
current income. The Sub-advisor utilizes a quantitative
management technique with a goal of building an equity
portfolio that provides better returns than the S&P 500
Index without taking on significant additional risk and
while attempting to create a dividend yield that will be
GROWTH greater than the S&P 500 Index.
& ---------------------------------------------------------------------------------------- -----------------------
INCOME AST Lord Abbett Growth and Income: seeks long-term growth of Lord, Abbett & Co.
capital and income while attempting to avoid excessive
fluctuations in market value. The Portfolio normally will
invest in common stocks (and securities convertible into
common stocks). The Sub-advisor will take a value-oriented
approach, in that it will try to keep the Portfolio's assets
invested in securities that are selling at reasonable prices
in relation to their value. The stocks that the Portfolio
will normally invest in are those of seasoned companies that
are expected to show above-average growth and that the
Sub-advisor believes are in sound financial condition.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
GROWTH AST MFS Growth with Income: seeks reasonable current income Massachusetts
& and long-term capital growth and income. Under normal market Financial Services
INCOME conditions, the Portfolio invests at least 65% of its total Company
(Cont.) assets in common stocks and related securities, such as
preferred stocks, convertible securities and depositary
receipts. The stocks in which the Portfolio invests
generally will pay dividends. While the Portfolio may invest
in companies of any size, the Portfolio generally focuses on
companies with larger market capitalizations that the
Sub-advisor believes have sustainable growth prospects and
attractive valuations based on current and expected earnings
or cash flow. The Portfolio may invest up to 20% of its net
assets in foreign securities.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
NATURAL AST T. Rowe Price Natural Resources: seeks long-term capital T. Rowe Price
RESOURCES growth primarily through the common stocks of companies that Associates, Inc.
own or develop natural resources (such as energy products,
precious metals, and forest products) and other basic
commodities. The Portfolio normally invests primarily (at
least 65% of its total assets) in the common stocks of
natural resource companies whose earnings and tangible
assets could benefit from accelerating inflation. The
Portfolio looks for companies that have the ability to
expand production, to maintain superior exploration programs
and production facilities, and the potential to accumulate
new resources.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST JanCap Growth: seeks growth of capital in a manner Janus Capital
consistent with the preservation of capital. Realization of Corporation
income is not a significant investment consideration and any
income realized on the Portfolio's investments, therefore,
will be incidental to the Portfolio's objective. The
Portfolio will pursue its objective by investing primarily
in common stocks of companies that the Sub-advisor believes
are experiencing favorable demand for their products and
services, and which operate in a favorable competitive and
regulatory environment. The Sub-advisor generally takes a
"bottom up" approach to choosing investments for the
Portfolio. In other words, the Sub-advisor seeks to identify
individual companies with earnings growth potential that may
LARGE CAP not be recognized by the market at large.
GROWTH
---------------------------------------------------------------------------------------- -----------------------
AST Marsico Capital Growth: seeks capital growth. Income Marsico Capital
realization is not an investment objective and any income Management, LLC
realized on the Portfolio's investments, therefore, will be
incidental to the Portfolio's objective. The Portfolio will
pursue its objective by investing primarily in common stocks
of larger, more established companies. In selecting
investments for the Portfolio, the Sub-advisor uses an
approach that combines "top down" economic analysis with
"bottom up" stock selection. The "top down" approach
identifies sectors, industries and companies that should
benefit from the trends the Sub-advisor has observed. The
Sub-advisor then looks for individual companies with
earnings growth potential that may not be recognized by the
market at large. This is called "bottom up" stock selection.
---------------------------------------------------------------------------------------- -----------------------
AST MFS Growth: seeks long-term capital growth and future Massachusetts
income. Under normal market conditions, the Portfolio Financial Services
invests at least 80% of its total assets in common stocks Company
and related securities, such as preferred stocks,
convertible securities and depositary receipts, of companies
that the Sub-advisor believes offer better than average
prospects for long-term growth. The Sub-advisor seeks to
purchase securities of companies that it considers well-run
and poised for growth. The Portfolio may invest up to 30% of
its net assets in foreign securities.
----------------------------------------------------------------------------------------- -----------------------
AST Oppenheimer Large-Cap Growth: seeks capital growth. The OppenheimerFunds,
Portfolio seeks its investment objective by emphasizing Inc.
investment in common stocks issued by established
large-capitalization "growth companies" that, in the opinion
of the Sub-advisor, have above average earnings prospects
but are selling at below normal prices. At least 65% of the
Portfolio's assets normally will be invested in companies
that have market capitalizations greater than $3 billion,
and the Portfolio will normally maintain a median market
capitalization greater than $5 billion.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
Wells Fargo Variable Trust - Equity Value: seeks to provide Wells Fargo Bank, N.A.
investors with long-term capital appreciation by investing
primarily in equity securities, including common stocks, and
may invest in debt instruments that are convertible into
common stocks of both domestic and foreign companies. Income
generation is a secondary consideration. The Portfolio may
invest in large, well-established companies and smaller
companies with market capitalization exceeding $50 million.
---------------------------------------------------------------------------------------- -----------------------
AST Neuberger Berman Mid-Cap Growth: seeks capital growth. Neuberger Berman
The Portfolio primarily invests in the common stocks of Management
mid-cap companies, i.e., companies with equity market Incorporated
capitalizations from $300 million to $10 billion at the time
of investment. The Portfolio is normally managed using a
growth-oriented investment approach. The Sub-advisor looks
for fast-growing companies that are in new or rapidly
evolving industries.
MID-CAP GROWTH ---------------------------------------------------------------------------------------- -----------------------
AST Neuberger Berman Mid-Cap Value: seeks capital growth. Neuberger Berman
The Portfolio primarily invests in the common stocks of Management
mid-cap companies. Under the Portfolio's value-oriented Incorporated
investment approach, the Sub-advisor looks for well-managed
companies whose stock prices are undervalued and that may
rise in price before other investors realize their worth.
Factors that the Sub-advisor may use to identify these
companies include strong fundamentals, including a low
price-to-earnings ratio, consistent cash flow, and a sound
track record through all phases of the market cycle.
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Dynamics: seeks
securities that will increase in value over the long term.
The Portfolio invests in a variety of securities which are
believed to present opportunities for capital growth - INVESCO Funds
primarily common stocks of companies traded on U.S. Group, Inc.
securities exchanges, as well as over-the-counter. The
Portfolio also may invest in preferred stocks and debt
instruments that are convertible into common stocks, as well
as in securities of foreign companies. In general, the
Portfolio invests in securities of companies in industries
that are growing globally and usually avoids stocks of
companies in cyclical, mature or slow-growing industries or
economic sectors. The Portfolio seeks to invest in stocks of
leading companies in attractive markets or industries, or
emerging leaders that have developed a new competitive
advantage.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Kemper Small-Cap Growth: seeks maximum growth of Scudder Kemper
investors' capital from a portfolio primarily of growth Investments, Inc.
SMALL stocks of smaller companies. At least 65% of the Portfolio's
CAPITALIZATION total assets normally will be invested in the equity
securities of smaller companies, i.e., those having a market
capitalization of $1.5 billion or less at the time of
investment, many of which would be in the early stages of
their life cycle. The Portfolio seeks attractive areas for
investment that arise from factors such as technological
advances, new marketing methods, and changes in the economy
and population. Because of the Portfolio's focus on the
stocks of smaller growth companies, investment in the
Portfolio may involve substantially greater than average
share price fluctuation and investment risk.

- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Lord Abbett Small Cap Value: seeks long-term capital Lord, Abbett & Co.
growth. The Portfolio will seek its objective through
investments primarily in equity securities that are believed
to be undervalued in the marketplace. The Portfolio
primarily seeks companies that are small-sized, based on the
value of their outstanding stock. Specifically, under normal
circumstances, at least 65% of the Portfolio's total assets
will be invested in common stocks issued by smaller, less
well-known companies (with market capitalizations of less
than $1 billion) selected on the basis of fundamental
investment analysis. The small capitalization companies in
which the Portfolio primarily invests may offer significant
appreciation potential. However, smaller companies may carry
more risk than larger companies.
SMALL
CAPITALIZATION
(Cont.) ---------------------------------------------------------------------------------------- -----------------------
AST T. Rowe Price Small Company Value: seeks to provide T. Rowe Price
long-term capital growth by investing primarily in Associates, Inc.
small-capitalization stocks that appear to be undervalued.
The Portfolio will normally invest at least 65% of its total
assets in stocks and equity-related securities of small
companies ($1 billion or less in market capitalization).
Reflecting a value approach to investing, the Portfolio will
seek the stocks of companies whose current stock prices do
not appear to adequately reflect their underlying value as
measured by assets, earnings, cash flow or business
franchises. Investing in small companies involves greater
risk of loss than is customarily associated with more
established companies.
---------------------------------------------------------------------------------------- -----------------------
Evergreen VA Special Equity: seeks capital growth. The Meridian Investment
Portfolio strives to provide a return greater than broad Company
stock market indices such as the Russell 2000(R) Index by
investing principally in a diversified portfolio of common
stocks of domestic companies. The Portfolio's investment
advisor principally chooses companies which it expects will
experience growth in earnings and price, and which have
small market capitalizations (under $1 billion) and medium
market capitalizations (between $1 billion and $5 billion).
The Portfolio may also invest in companies that have large
market capitalizations (over $5 billion).
---------------------------------------------------------------------------------------- -----------------------
ProFund VP SmallCap: seeks daily investment results that ProFund Advisors LLC
correspond to the performance of the Russell 2000(R) Index.
The Portfolio principally invests in futures contracts on
stock indexes and options on futures contracts and financial
instruments such as equity caps, collars, floors and options
on securities and stock indexes of diverse, widely traded,
small capitalization companies. Additionally, the Portfolio
may invest in a combination of stocks that in the investment
advisor's opinion should simulate the movement of the
Russell 2000(R) Index.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST AIM International Equity: seeks capital growth. The A I M Capital
Portfolio seeks to meet its objective by investing, Management, Inc.
normally, at least 70% of its assets in marketable equity
securities of foreign companies that are listed on a
recognized foreign securities exchange or traded in a
foreign over-the-counter market. The Portfolio will normally
invest in a diversified portfolio that includes companies
from at least four countries outside the United States,
emphasizing counties of Western Europe and the Pacific
Basin.
INTERNATIONAL
EQUITY
---------------------------------------------------------------------------------------- -----------------------
AST American Century International Growth: seeks capital American Century
growth. The Portfolio will seek to achieve its investment Investment
objective by investing primarily in equity securities of Management, Inc.
international companies that the Sub-advisor believes will
increase in value over time. Under normal conditions, the
Portfolio will invest at least 65% of its assets in equity
securities of issuers from at least three countries outside
of the United States. The Sub-advisor uses a growth
investment strategy it developed that looks for companies
with earnings and revenue growth. The Sub-advisor will
consider a number of other factors in making investment
selections, including the prospects for relative economic
growth among countries or regions, economic and political
conditions, expected inflation rates, currency exchange
fluctuations and tax considerations.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
AST Founders Passport: seeks capital growth. The Portfolio Founders Asset
normally invests primarily in securities issued by foreign Management LLC
companies that have market capitalizations or annual
revenues of $1 billion or less. These securities may
represent companies in both established and emerging
economies throughout the world. At least 65% of the
Portfolio's total assets normally will be invested in
foreign securities representing a minimum of three
countries. Foreign securities are generally considered to
involve more risk than those of U.S. companies, and
securities of smaller companies are generally considered to
be riskier than those of larger companies.
---------------------------------------------------------------------------------------- -----------------------
AST MFS Global Equity: seeks capital growth. Under normal Massachusetts
market conditions, the Portfolio invests at least 65% of its Financial Services
total assets in common stocks and related securities, such Company
as preferred stock, convertible securities and depositary
receipts, of U.S. and foreign issuers (including issuers in
developing countries). The Portfolio generally seeks to
purchase securities of companies with relatively large
market capitalizations relative to the market in which they
are traded.
---------------------------------------------------------------------------------------- -----------------------
INTERNATIONAL AST T. Rowe Price International Equity: seeks total return Rowe Price-Fleming
EQUITY from long-term growth of capital and income, principally International, Inc.
(Cont.) through investments in common stocks of established,
non-U.S. companies. Investments may be made solely for
capital appreciation or solely for income or any combination
of both for the purpose of achieving a higher overall
return. The Sub-advisor expects to invest substantially all
of the Portfolio's assets (with a minimum of 65%) in
established foreign companies. Geographic diversification
will be wide, including both developed and developing
countries, and there will normally be at least three
different countries represented in the Portfolio.
---------------------------------------------------------------------------------------- -----------------------
Evergreen VA Global Leaders: seeks to provide investors with Evergreen Asset
long-term capital growth. The Portfolio normally invests at Management Corp.
least 65% of its assets in a diversified portfolio of U.S.
and non-U.S. equity securities of companies located in the
world's major industrialized countries. The Portfolio will
invest in no less than three countries, which may include
the U.S., but may invest more than 25% of its total assets
in one country. The Portfolio invests only in the best 100
companies, which are selected by the investment advisor
based on qualitative and quantitative criteria such as high
return on equity, consistent earnings growth and established
market presence.
---------------------------------------------------------------------------------------- -----------------------
ProFund VP Europe 30: seeks daily investment results that ProFund Advisors LLC
correspond to the performance of the ProFunds Europe Index.
The ProFunds Europe Index ("PEI") is a combined measure of
European stock performance created by the investment advisor
from the leading stock indexes of Europe's three largest
economies giving equal weight to each index each day. The
PEI averages the daily results of The Financial Times Stock
Exchange 100, The Deutsche Aktienindex and the CAC-40. The
Portfolio principally invests in futures contracts on stock
indexes and options on futures contracts and financial
instruments such as equity caps, collars, floors and options
on securities and stock indexes of large capitalization,
widely traded, European stocks. The Portfolio invests in
financial instruments with values that reflect the
performance of stocks of European companies.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
EMERGING Montgomery Variable Series - Emerging Markets: seeks capital Montgomery Asset
MARKETS appreciation, which under normal conditions it seeks by Management, L.P.
investing at least 65% of its total assets in equity
securities of companies in countries having emerging
markets. Under normal conditions, investments are maintained
in at least six emerging market countries at all times and
no more than 35% of total assets are invested in any one
emerging market country.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------------------------------------------------------------------------------------------------------------------------
Sector funds generally diversify their investments across particular economic
sectors. However, because those investments are limited to a comparatively
narrow segment of the economy, sector funds are generally not as diversified as
most mutual funds. Sector funds tend to be more volatile than other types of
funds. The value of fund shares may go up and down more rapidly than other
funds. Each sector of the economy may also have different regulatory or other
risk factors that can cause greater fluctuations in the share price. Please read
the prospectus for the underlying sector fund for further details about the
risks of the particular sector of the economy.
- ------------------------------------------------------------------------------------------------------------------------------------
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Financial Services:
seeks capital appreciation. The Portfolio normally invests
at least 80% of its assets in the equity securities of
companies involved in the financial services sector. This INVESCO Funds Group, Inc.
sector includes, among others, banks (regional and
money-centers), insurance companies (life, property and
casualty, and multiline), and investment and miscellaneous
industries (asset managers, brokerage firms, and
government-sponsored agencies). The Investment Advisor seeks
companies which it believes can grow their revenues and
earnings regardless of the interest rate environment -
although securities prices of financial services companies
generally are interest rate-sensitive.
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Health Sciences: seeks
capital appreciation. The Portfolio invests at least 80% of
its assets in the equity securities of companies that
develop, produce or distribute products or services related INVESCO Funds Group, Inc.
to health care. These industries include, but are not
limited to, medical equipment or supplies, pharmaceuticals,
health care facilities, and applied research and development
of new products or services. The investment advisor attempts
to blend well-established healthcare firms with
faster-growing, more dynamic health care companies, which
have new products or are increasing their market share of
existing products.
SECTOR ---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable InvestmentFunds - Technology: seeks capital
appreciation. The Portfolio normally invests at least 80% of
its assets in the equity securities of companies
engaged in technology-related industries. These include, but INVESCO Funds Group, Inc.
are not limited to, communications, computers, video,
electronics, oceanography, office and factory automation,
and robotics. A core portion of the Portfolio's holdings are
invested in market-leading technology companies which the
investment advisor believes will maintain or improve their
market share regardless of overall conditions.
---------------------------------------------------------------------------------------- -----------------------
INVESCO Variable Investment Funds - Telecommunications:
seeks capital appreciation. The Portfolio normally invests
at least 80% of its assets in the equity securities of
companies that are primarily engaged in the design,
development, manufacture, distribution, or sale of INVESCO Funds Group, Inc.
communications services and equipment, and companies that
are involved in developing, constructing, or operating
communications infrastructure projects throughout the world,
or in supplying equipment or services to such companies. The
telecommunications sector includes companies that offer
telephone services, wireless communications, satellite
communications, television and movie programming and
broadcasting. Normally, the Portfolio will invest at least
65% of its assets in companies located in at least three
different countries, although U.S. issuers will often
dominate the holdings.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
<PAGE>
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
PORTFOLIO
STYLE/ INVESTMENT OBJECTIVES/POLICIES ADVISOR/
TYPE SUB-ADVISOR
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
- ------------------------------------------------------------------------------------------------------------------------------------
The ProFund VP UltraOTC portfolio and the Nova, Ursa and OTC portfolios of the
Rydex Variable Trust are available to all Owners, except for Owners that
purchase the Optional Guarantee Feature. However, it is recommended that only
those Owners who engage a financial advisor to allocate their funds in strategic
or tactical asset allocation strategies invest in this portfolio. There can be
no assurance that any financial advisor will successfully predict market
fluctuations.
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
ProFund VP UltraOTC: seeks daily investment results that ProFund Advisors LLC
correspond to twice (200%) the performance of the NASDAQ 100
Index(TM). The Portfolio principally invests in futures
contracts on stock indexes and options on futures contracts
and financial instruments such as equity caps, collars,
floors and options on securities and stock indexes of large
capitalization companies. If the Portfolio is successful in
meeting its objective, it should gain approximately twice as
much as the growth oriented NASDAQ 100 Index(TM)when the
prices of the securities in that index rise on a given day
and should lose approximately twice as much when such prices
decline on that day.
---------------------------------------------------------------------------------------- -----------------------
Rydex Variable Trust - Nova: seeks to provide investment PADCO Advisors II, Inc.
returns that are 150% of the S&P 500 Composite Stock Price
Index by investing to a significant extent in futures
STRATEGIC OR contracts and options on securities, futures contracts and
TACTICAL stock indexes. If the Portfolio meets its objective the
ALLOCATION value of its shares will tend to increase by 150% of the
value of any increase in the S&P 500 Index. However, when
the value of the S&P 500 Index declines, the value of its
shares should also decrease by 150% of the value of any
decrease in the S&P 500 Index.
---------------------------------------------------------------------------------------- -----------------------
Rydex Variable Trust - Ursa: seeks to provide investment PADCO Advisors II, Inc.
results that will inversely correlate (e.g. be the opposite)
to the performance of the S&P 500 Composite Stock Price
Index by investing to a significant extent in futures
contracts and options on securities, futures contracts and
stock indexes. The Portfolio will generally not invest in
the securities included in the S&P 500 Index. If the
Portfolio meets its objective the value of its shares will
tend to increase when the value of the S&P 500 Index is
decreasing. However, when the value of the S&P 500 Index is
increasing, the value of its shares should decrease by an
inversely proportional amount.
---------------------------------------------------------------------------------------- -----------------------
Rydex Variable Trust - OTC: seeks to provide investment PADCO Advisors II, Inc.
results that correspond to a benchmark for over-the-counter
securities, currently the NASDAQ 100 Index(TM), by investing
principally in the securities of companies included in that
Index. The Portfolio may also invest in other instruments
whose performance is expected to correspond to that of the
Index, and may engage in futures and options transactions.
If the Portfolio meets its objective the value of its shares
will tend to increase by the amount of the increase in the
NASDAQ 100 Index(TM). However, when the value of the NASDAQ
100 Index(TM)declines, the value of its shares should also
decrease by the amount of the decrease in the value of the
Index(TM).
- ------------------- ---------------------------------------------------------------------------------------- -----------------------
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," and
"500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed
for use by American Skandia Investment Services, Incorporated and Bankers Trust.
The Portfolio is not sponsored, endorsed, sold or promoted by Standard & Poor's
and Standard & Poor's makes no representation regarding the advisability of
investing in the Portfolio.
</TABLE>

FEES AND CHARGES

WHAT ARE THE ANNUITY FEES AND CHARGES?

TAX CHARGES: Several states and some municipalities charge premium taxes or
similar taxes on annuities. The amount of tax will vary from jurisdiction to
jurisdiction and is subject to change. Currently, the state tax charge ranges
from 0% to 3 1/2%. We will deduct the amount of any tax charge at the time your
Premium is applied to the Annuity.

We may assess a charge against the Sub-Accounts equal to any taxes, which may be
imposed upon the Separate Account.

TRANSFER FEE: You may make twelve (12) free transfers between Sub-Accounts each
Annuity Year. We will charge $10.00 for each transfer after the twelfth in each
Annuity Year. Transfers made as part of a rebalancing, market timing or third
party investment advisory service will be subject to the transfer limit. For a
description of these programs see "Do You Offer Any Automatic Rebalancing
Programs?" However, all transfers made on the same day will be treated as one
(1) transfer.

WHAT CHARGES ARE DEDUCTED BY THE SEPARATE ACCOUNT?

INSURANCE CHARGE: We deduct an Insurance Charge daily against the average daily
assets allocated to the Sub-Accounts. The charge is equal to 1.25% on an annual
basis. This charge is for insurance benefits provided by the Annuity, which may
include the risk that persons to whom we guarantee Annuity Payments will live
longer than our assumptions. The charge also covers administrative costs
associated with providing the Annuity benefits, including preparation of the
contract, confirmation statements, annual account statements and annual reports,
legal and accounting fees, as well as various related expenses. Finally, the
charge covers the risk that our assumptions about the administrative and
non-mortality expenses under this Annuity are incorrect. We may increase the
portion of the Insurance Charge for administrative costs. However, any increase
will only apply to an Annuity issued after the date of the increase.

We may reduce also the administrative costs portion of the Insurance Charge when
an Annuity is sold to individuals or a group of individuals in a manner that
reduces our administrative expenses under the Annuity. In reducing this portion
of the charge we consider among other things: (a) the size and type of the
group; (b) the number of annuities purchased by an Owner; (c) the amount of
Premium; and/or (d) other transactions where administrative expenses are likely
to be reduced. We will not discriminate unfairly between Annuity purchasers if
and when we reduce the administration portion of the Insurance Charge.

PURCHASING YOUR ANNUITY

WHAT ARE THE REQUIREMENTS FOR PURCHASING THE ANNUITY?

PREMIUM PAYMENT: You must make a minimum Premium payment of not less than
$35,000. We may allow a lower minimum Premium payment if the Annuity is
purchased as a settlement option or an annuitization option from a deferred
annuity or a life insurance policy issued by us. Any Premium in excess of
$1,000,000 will require approval of our home office before issuing the Annuity.

We may require certain information before we issue an Annuity, including, but
not limited to, evidence satisfactory to us of the age of each Annuitant.

Once we agree to issue an Annuity, we invest your Net Premium in the Annuity.
The Net Premium is your Premium minus any Tax Charges that may apply. We apply
the Net Premium based on your instructions for allocating your Contract Value
among one or more Sub-Accounts.

AGE RESTRICTIONS: If the Annuity is purchased with a life contingency payout
option, the Annuitant(s) may not be greater than age 85 on the Issue Date. If
there is more than one Annuitant named, no Annuitant may be greater than age 85
on the Issue Date. If a Certain Period only is selected we currently have no
maximum issue age restriction.

OWNER, ANNUITANT, AND BENEFICIARY DESIGNATIONS: We require you to name the
Owner(s), Annuitant(s) and Beneficiary(ies) for your Annuity.

- - OWNER: We assume the Annuitant is also the Owner unless you indicate
otherwise. Similarly, if there are joint Annuitants, we assume each
Annuitant is a joint Owner. You may name more than one Owner in which
case all ownership rights are held jointly. You may name a contingent
Owner. Ownership rights pass to such a contingent Owner upon the death
(or in the case of an entity, the dissolution) of the Owner. Unless you
indicate otherwise, no rights pass to any contingent Owner until the
death (or dissolution) of all Owners.

All ownership rights pass to the Beneficiary as of the Inheritance Date
unless you instruct us that ownership should remain with any then
surviving Owners. If ownership rights vest in a Beneficiary and there is
no prior irrevocable contingent Beneficiary designation, such Beneficiary
may name a person or entity to receive any remaining Annuity Payments yet
to be paid subsequent to such Beneficiary's death.

- - ANNUITANT: The Annuitant is the person to whom we agree to make Annuity
Payments. If we are to make Annuity Payments for life, we makes such
payments only during the life of the Annuitant. You may name one or two
Annuitants. The Annuitant can be, but does not have to be, the Owner. You
must name an Annuitant who is a natural person. The Annuitant designation
cannot be changed once your Annuity is issued.

- - BENEFICIARY: The Beneficiary(ies) is/are the person(s) or entity(ies) you
name to receive any remaining payments under the Annuity if there is any
remaining Certain Period. You may name one or more primary Beneficiaries
and one or more contingent Beneficiaries. Payments to your
Beneficiary(ies) will be made in equal proportions unless you notify us
otherwise. We will make payment to a contingent Beneficiary if the
primary Beneficiary dies before the Inheritance Date. If no Beneficiary
is alive as of the Inheritance Date or you do not make a Beneficiary
designation, any remaining Annuity Payments will be made to you or your
estate. Unless you indicate otherwise, no rights pass to any contingent
Beneficiary until the death (or dissolution) of all Beneficiaries. If
Annuity Payments are being made to a Beneficiary and the Beneficiary has
not named a person or entity to receive Annuity Payments during any
remaining Certain Period subsequent to his or her death, then such
Annuity Payments will be made to the Beneficiary's estate. Beneficiary
designations can be changed unless the Owner requests that the
designation be made irrevocable.

Your choice of Annuitant(s) and Beneficiary(ies) can have significant tax
implications. You should seek competent tax advice on the income, estate and
gift tax implications of your designations.

WHAT ARE MY PAYOUT OPTIONS?

We may offer this Annuity with four different payout options.

- - LIFE ONLY: Under this payout option, we make Annuity Payments as long as
the Annuitant is living, no matter how long that may be. The final
payment will be the payment made immediately prior to the death of the
Annuitant. No additional payments would be made after the Annuitant dies.
It is possible that only one Annuity Payment would be made under this
payout option. This would happen if the Annuitant dies before the second
Annuity Payment Date. No full or partial surrenders are permitted if this
option is selected.

- - CERTAIN ONLY: Under this payout option, we guarantee to make payments for
a designated number of years. The number of years CANNOT BE LESS THAN __
OR MORE THAN __. If the Annuitant dies prior to the last guaranteed
Payment Date, we will continue Annuity Payments to the Beneficiary as
they become due or pay the present value of the remaining guaranteed
payments in a lump sum to the Beneficiary when we receive due proof of
the Annuitant's death. If payments under this option are available, the
present value of the remaining guaranteed payments is calculated as of
the date we receive written notice of the Annuitant's death, using that
Annuity's Benchmark Rate. No additional Annuity Payments will be made
under this option after all the guaranteed payments have been made. If
this option is selected full surrenders may be made from the Annuity
prior to the last guaranteed Payment Date. No partial surrenders are
permitted if this option is selected.

- - LIFE WITH CERTAIN PERIOD: UNDER THIS PAYOUT OPTION, WE WILL MAKE ANNUITY
PAYMENTS FOR A SPECIFIED PERIOD (__ OR __ YEARS) or for the life of the
Annuitant, whichever is later. The final payment will be the later of
either the last guaranteed Payment Date or the scheduled Payment Date
immediately prior to the Annuitant's death. If the Annuitant dies prior
to the last guaranteed Payment Date, we will make payments to the
Beneficiary when we receive due proof of the Annuitant's death. No
additional payments will be made if the Annuitant dies after all
guaranteed payments have been made. Full or partial surrenders are
permitted if this option is selected.

- - JOINT LIFE WITH CERTAIN PERIOD: Under this payout option we will provide
Annuity Payments for a designated period of yearS or for the Annuitants
and Joint Annuitants lifetimes, whichever is later. Full or partial
surrenders are permitted if this option is selected.

We may offer additional payout options in the future.

MAY I RETURN THE ANNUITY IF I CHANGE MY MIND?

(The right to return the Annuity is referred to as the "Free-Look" right or
"right to cancel.")

If after purchasing your Annuity you change your mind and decide that you do not
want it, you may return it to us within a certain period of time known as a
Free-Look period. Depending on the state in which you purchased your Annuity,
the Free-Look period may be ten (10) days, twenty-one (21) days or longer,
measured from the time that you received your Annuity. If you exercise your
Free-Look right, we will refund your Contract Value, plus any Tax Charges
deducted. This amount may be higher or lower than your original Premium. Certain
states require that we return your current Contract Value or the amount of your
initial Premium, whichever is greater. The same rule applies to an Annuity that
is purchased as an IRA. In those states where we are required to return the
greater of your Premium or Contract Value, we will allocate your Contract Value
to the AST Money Market Sub-Account during the Free-Look period and for a
reasonable additional amount of time to allow for delivery of your Annuity.

MANAGING YOUR ANNUITY

ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN SUB-ACCOUNTS?

You may make transfers between Sub-Accounts. Transfers are not subject to
taxation. We currently limit the number of Sub-Accounts you can invest in at any
one time to ten (10) or, if asset allocation is required, the number of
categories in the asset allocation model. We may require a minimum of $500 in
any Sub-Account to which you allocate your Contract Value at the time of any
allocation or transfer. If you request a transfer and, as a result of the
transfer, there would be less than $500 in the Sub-Account, we may transfer the
remaining Contract Value in the Sub-Account pro rata to the other investment
options to which you transferred.

WE RETAIN THE RIGHT TO CHARGE $10.00 FOR EACH TRANSFER AFTER THE TWELFTH (12TH)
in each Annuity Year, including transfers made as part of any rebalancing,
market timing or third party investment advisory service which you have
authorized. All rebalancing transfers made on the same day as part of an
automatic rebalancing program are considered as one transfer when counting the
number of transfers each year towards the maximum of 12 free transfers.

We reserve the right to limit the number of transfers in any Annuity Year for
all existing or new Owners. We also reserve the right to limit the number of
transfers in any Annuity Year or to refuse any transfer request for an Owner or
certain Owners if: (a) we believe that excessive trading or a specific transfer
request or group of transfer requests may have a detrimental effect on the share
prices of the Portfolios; or (b) we are informed by one or more of the
Portfolios that the purchase or redemption of shares must be restricted because
of excessive trading or a specific transfer or group of transfers is deemed to
have a detrimental effect on the share prices of affected Portfolios. Without
limiting the above, the most likely scenario where either of the above could
occur would be if the aggregate amount of a trade or trades represented a
relatively large proportion of the total assets of a particular Portfolio. Under
such a circumstance, we will process transfers according to our rules then in
effect and provide notice if the transfer request was denied. If a transfer
request is denied, a new transfer request may be required.

MAY I AUTHORIZE MY FINANCIAL REPRESENTATIVE TO MANAGE MY ACCOUNT?

You may authorize your financial representative to decide on the allocation of
your Contract Value and to make financial transactions between investment
options, subject to our rules. However, we can suspend or cancel these
privileges at any time. We will notify you if we do. We may restrict the
available investment options if you authorize a financial representative to make
transfers for you. We do this so that no financial representative is in a
position to control transfers of large amounts of money for multiple clients
into or out of any of the Portfolios that have expressed concern about movement
of a large proportion of a Portfolio's assets.

We may also establish different "cut-off times" by which we must receive all
financial transactions for certain Portfolios. Currently, only the portfolios of
Rydex Variable Trust and ProFund VP are subject to this restriction. Financial
transactions involving a Rydex or ProFund Sub-Account must be received by us no
later than one (1) hour before close of the New York Stock Exchange (generally
3:00 p.m. Eastern time) to be processed on the current Valuation Day. If you
request a transaction involving the purchase or redemption of units in one of
the Rydex or ProFund Sub-Accounts after this time, we will deem your request as
received by us on the next Valuation Day.

We, or an affiliate of ours, may provide administrative support to financial
representatives who make transfers on your behalf. These financial
representatives may be firms or persons who also are appointed by us as
authorized sellers of the Annuity. However, we do not offer you advice about how
to allocate your Contract Value. Any financial firm or representative you engage
to provide advice and/or make transfers for you is not acting on our behalf. We
are not responsible for any recommendations such financial representatives make,
any market timing or asset allocation programs they choose to follow or any
specific transfers they make on your behalf.

DO YOU OFFER ANY AUTOMATIC REBALANCING PROGRAMS?

Yes, we offer an automatic rebalancing program that can periodically reallocate
your Contract Value among the Sub-Accounts you choose. You can choose to have
your Contract Value rebalance quarterly, semi-annually, or annually. On the
appropriate date, your Sub-Accounts are rebalanced to the allocation percentages
you request. If you request a transfer from or into any Sub-Account that is part
of the automatic rebalancing program, we will ask if you wish to change your
rebalancing percentages as well, and will automatically adjust the rebalancing
percentages in accordance with the transfer request unless we receive alternate
instructions from you.

ACCESS TO CASH VALUE

MAY I SURRENDER ALL OR PART OF MY ANNUITY?

If an Annuitant is alive, you may surrender all of the Annuity for its Cash
Value, if any. You also may surrender a portion of your Annuity if your Annuity
is payable for life and a Certain Period, as long as the Annuitant is alive and
the Cash Value remaining after the partial surrender is at least $5,000. The
Cash Value, if any, is always less than the Contract Value. If you elect a
partial surrender of the Annuity we will apply the surrender pro-rata among all
Sub-Accounts where you are invested. Such partial surrender will reduce
proportionately all the Annuity's Contract and Cash Values, but will not effect
the Certain Period. We may request evidence satisfactory to us that the
Annuitant is alive and other information to process the surrender request (see
"Requirements for Surrender").

Cash Value is determined by discounting the value of future Annuity Payments.
The discount rate used may be higher than the Benchmark Rate but currently never
more than 2%. The discount rate applicable to your Annuity may depend on whether
Annuity Payments are payable for life, the Annuitant's age and gender (where
applicable), or the length of the Certain Period. The discount rate in effect on
the Issue Date is not subject to change.

You may elect to return the Annuity during the Free-Look period. For additional
information about surrendering during the Free-Look period, please refer to the
section entitled "May I return the Annuity if I change my mind?"

WHAT IF MY CERTAIN PERIOD IS ZERO, MAY I STILL MAKE A FULL OR PARTIAL SURRENDER?

No. If your Annuity has no Certain Period you may not make a full or partial
surrender because there is no Cash Value.

REQUIREMENTS FOR A SURRENDER: We must receive at our Office:
(a) a request in writing;
(b) the Annuity; and
(c) necessary representations in writing regarding tax withholding.

ANNUITY BENEFITS

WHAT ARE THE BENEFITS OF THIS ANNUITY?

This Annuity provides that Annuity Payments are payable for the life of the
Annuitant, for a Certain Period, or for the life of the Annuitant and a Certain
Period. This Annuity terminates when the Annuitant dies, the Certain Period
chosen ends, or upon the Inheritance Date if a lump sum death benefit is
payable.

HOW DO WE CALCULATE YOUR ANNUITY PAYMENT?

Any portion of your Premium allocated to the Sub-Accounts will be used to
purchase Units. We will determine the number of Units based on the Premium
reduced by any Tax Charge, the length of any Certain Period, the payout option
selected, and the Unit Value of the Sub-Accounts you initially selected on the
Issue Date. The number of Units also will depend on the Annuitant's age and
gender (where permitted by law) if Annuity Payments are due for the life of the
Annuitant. The number of Units allocated to each Sub-Account will not change
unless you transfer among the Sub-Accounts or withdraw cash (if allowed).

We calculate your Annuity Payment Amount on each Monthly Processing Date by
taking the number of Units scheduled to be redeemed under the Schedule of Units
in each Sub-Account and multiplying them by the Unit Value of each Sub-Account
on such date. This calculation is performed for each Sub-Account, and the sum of
the Sub-Account calculations will equal the amount of your Annuity Payment
Amount.

The Unit Value in a particular Sub-Account on any Valuation Day is equal to the
Unit Value of that Sub-Account on the immediately preceding Valuation Day
multiplied by the Net Investment Factor for that Sub-Account for the Valuation
Period multiplied by the daily factor for the Valuation Period.

WHEN ARE ANNUITY PAYMENTS MADE?

Each Annuity Payment is payable monthly on the Annuity Payment Date. The initial
Annuity Payment will be on a date of your choice of THE 1ST THROUGH THE 28TH DAY
OF THE CALENDAR MONTH FOLLOWING THE 30TH day after the Issue Date of this
Annuity. This date will be the Annuity Payment Date which may not change after
the Issue Date.

MAY I CONVERT ANNUITY PAYMENTS TO FIXED PAYMENTS?

Yes. You may convert to fixed Annuity Payments but only after two (2) years from
the Annuity's Issue Date. Before any Annuity Payment Date after this period, you
may make an irrevocable election to convert to fixed Annuity Payments. If you
elect fixed payments, on each Annuity Payment Date you will receive a fixed
amount that will not vary with investment performance. The value of these
payments depends on the Contract Value at the time of the conversion, the then
current Certain Period, the Annuitant's age and gender (where permitted by law)
if a life payout is selected, and an assumed interest rate of not less than 3%
per year. The subsequent Annuity Payment Amount may be greater than, equal to,
or less than the current Annuity Payment Amount. The Certain Period is not
effected by conversion. After you have elected this option under this Annuity
you will not be permitted to make full or partial surrenders.

WHO RECEIVES THE ANNUITY PAYMENT?

We make Annuity Payments to the Annuitant. Subject to our rules, we may accept
your instructions to forward Annuity Payments to an alternate payee.

WHAT HAPPENS WHEN THE ANUITANT DIES?

As of the Inheritance Date, if an Certain Period exists, we will make Annuity
Payments to the Beneficiary for the remainder of the CERTAIN PERIOD. AS AN
ALTERNATIVE, A LUMP SUM CAN BE PAID TO THE BENEFICIARY. THERE IS NO GUARANTEE
THAT THERE WILL BE ANY CERTAIN PERIOD AFTER THE DATE OF DEATH, WHICH MEANS THERE
MAY BE NO AMOUNT DUE FOR THE BENEFICIARY. If there is no Certain Period as of
the Inheritance Date, the Annuity terminates.

If the Annuitant dies before the Annuity Date, the Annuity will end and the Cash
Value will be payable as settlement to the Beneficiary(s) after we have received
all of our requirements to make settlement.

WHAT HAPPENS WHEN THE OWNER DIES?

If any Owner dies before the Annuity Date, the Annuity will end and the Cash
Value will be payable to the Beneficiary(s) after we have received all of our
requirements to make settlement.

WHEN DO ANNUITY PAYMENTS FOR A BENEFICIARY START?

If Annuity Payments are to be paid to a Beneficiary, Annuity Payments will begin
as of the next Annuity Payment Date following the Inheritance Date, or the Cash
Value can then be paid. No amounts are payable to a Beneficiary until the death
of the last surviving Annuitant. Evidence satisfactory to us of the death of all
Annuitants must be provided before any amount becomes payable to a Beneficiary.

IF ANNUITY PAYMENTS ARE TO BE PAID TO A BENEFICIARY, WHAT DETERMINES THE ANNUITY
PAYMENT EACH MONTH AND HOW LONG WILL THE ANNUITY PAYMENTS BE PAID TO THE
BENEFICIARY?

We make Annuity Payments to the Beneficiary if a Certain Only or a Life with
Certain Period payout option has been selected. We calculate the amount payable
each month in the same manner before and after the Inheritance Date if Annuity
Payments are payable to the Beneficiary. Annuity Payments payable to Beneficiary
are due over any remaining Certain Period. The Annuity terminates when the
Certain Period ends.

If there is a Certain Period remaining as of the Inheritance Date, the
Beneficiary may elect to receive the Cash Value instead of Annuity Payments if,
before the Inheritance Date, you did not elect, in writing, to prohibit
commutation and all Beneficiaries agree in writing to such commutation. All
requirements that would otherwise apply for Annuity Payments payable for the
benefit of the Beneficiary will apply before we pay a Cash Value as an
alternative.

WHAT DOCUMENTATION IS REQUIRED TO RECEIVE ANNUITY PAYMENTS?

REQUIREMENTS FOR ANNUITY PAYMENTS WHILE THE ANNUITANT IS ALIVE: We must receive
at our office necessary representations in writing regarding tax withholding. We
may also require, from time-to-time, evidence in writing satisfactory to us that
the Annuitant is alive. We may withhold Annuity Payments until we receive our
requirements or until we receive in writing due proof satisfactory to us of the
Annuitant's death. Such withheld Annuity Payments will be maintained in our
general account. We will credit interest of at least 3% per year, compounded
yearly, on each withheld Annuity Payment unless otherwise required by law.
Should we subsequently receive the applicable requirements, we will pay the
withheld Annuity Payments plus any interest credited in a lump sum for the
benefit of the applicable payee (see "Payments and Payees").

REQUIREMENTS FOR ANNUITY PAYMENTS PAYABLE TO THE BENEFICIARY: We must receive at
our Office:

(a) due proof satisfactory to us in writing of the death of all Annuitants and,
if applicable, no Owner died before the Annuity Date;
(b) the Annuity; and
(c) all representations, in writing, that we require or which are mandated by
applicable law or regulation in relation to making payments to a Beneficiary,
including any required in relation to tax withholding.

Once Annuity Payments begin to be paid to a Beneficiary, we may require, from
time-to-time, evidence in writing satisfactory to us that a natural person who
is a Beneficiary is alive. We may withhold Annuity Payments until we receive
such requirements, or until we receive in writing due proof satisfactory to us
of such Beneficiary's death. We will credit interest of at least 3% per year,
compounded yearly, on each withheld Annuity Payment unless otherwise required by
law. Should we subsequently receive our requirements, we will pay the withheld
Annuity Payments plus any interest credited in a lump sum for the benefit of the
applicable payee (see "Payments and Payees").

PAYMENTS AND PAYEES

The payees of an Annuity Payment, Cash Value, or a partial or full surrender may
provide us with an account at a financial institution to which we may
electronically forward such payments. Subject to our rules, we may, as a
convenience, forward a payment for an Annuitant, Owner, or Beneficiary (or a
person selected to receive remaining Annuity Payments after such Beneficiary's
death) to an account for the benefit of an alternate person or entity. We must
receive the request to forward payments to such alternate person or entity in
writing from the person or entity that then has ownership rights.

We pay Annuity Payments to the Annuitant first designated on any application
unless you instruct us to forward Annuity Payments to any other named Annuitant.
We forward any partial or full surrender to the Owner unless you instruct us
otherwise.

Before the Inheritance Date, we may split Annuity Payments among all the
recipients if requested by the Owner in writing. We reserve the right to limit
the number of payees. If a split payment has been selected and one of any
several joint payees die but other joint payees survive; and we receive proof
satisfactory to us of such death, any subsequent Annuity Payments will be split
pro rata among accounts for the surviving payees. Such split Annuity Payments
can be terminated by the Owner by forwarding a request to us in writing before
the Inheritance Date.

Any amounts due on or after the Inheritance Date will be split among any named
Beneficiaries in accordance with the Beneficiary designation. However, currently
we will not accept an instruction to pay part as a lump sum and part as Annuity
Payments. We will pay the lump sum and our liability under the Annuity will
terminate if no election is received in writing by us at our Office before the
Inheritance Date or if, as of the Inheritance Date, multiple Beneficiaries
cannot agree as to whether amounts are to be received as Annuity Payments or a
lump sum (assuming some amount is owed).

TAX CONSIDERATIONS

WHAT ARE SOME OF THE FEDERAL TAX CONSIDERATIONS OF THIS ANNUITY?

Following is a brief summary of some of the federal tax considerations relating
to this Annuity. Since the tax laws are complex and tax consequences are
affected by your individual circumstances, this summary of our interpretation of
the relevant tax laws is not comprehensive nor is it tax advice. You may wish to
consult a professional tax advisor for tax advice.

TAXATION OF AMERICAN SKANDIA AND THE SEPARATE ACCOUNT

The Separate Account is taxed as part of American Skandia which is taxed as a
life insurance company under Subchapter L of the Code. Accordingly, the Separate
Account is not separately taxed as a "regulated investment company" under
Subchapter M of the Code. Investment income and any realized capital gains on
the assets of the Separate Account are reinvested and are taken into account in
determining the value of the Units. As a result, such investment income and
realized capital gains are automatically applied to increase reserve under the
Annuity.

Currently no taxes are due on interest, dividends and short-term or long-term
capital gains earned by the Separate Account with respect to the Annuity.

HOW ARE IMMEDIATE ANNUITIES TREATED UNDER THE TAX CODE?

Section 72 of the Code governs the taxation of annuities in general. Taxation of
an immediate annuity is largely dependent upon whether it is used in a qualified
pension or profit sharing plan or other retirement arrangement eligible for
special treatment under the Code.

Pursuant to Section 72(s) of the Code, an annuity must provide for certain
required distributions after the date of death of the Owner. In addition,
pursuant to Section 72(u) an annuity will be considered an immediate annuity if
it is purchased with a single premium, Annuity Payments commence within one year
from the date of the purchase, and the Annuity provides for a series of equal
payments no less frequently than annually. Based on our understanding of tax
law, we believe that the Annuity meets these requirements and would be
considered an immediate annuity for the federal income tax purposes except as
otherwise noted below under "Special concerns regarding immediate annuities".

HOW ARE ANNUITY PAYMENTS TAXED?

DISTRIBUTIONS FROM AN ANNUITY ARE TAXED AS ORDINARY INCOME AND NOT AS CAPITAL
GAINS. Generally, a portion of each Annuity Payment is taxable as determined by
an IRS formula that establishes the ratio between the "investment in the
contract" and the total value of Annuity Payments to be made. This is called the
"exclusion ratio."

"Investment in the contract" is equal to the total Premium paid for the contract
minus any previous distributions (or portions of distributions) from such
contract that were not includible in gross income. "Investment in the contract"
may be affected by whether an annuity was purchased as part of a tax-free
exchange of life insurance , endowment, or annuity contracts under Section 1035
of the Code.

The portion of each Annuity Payment that represents "Investment in the contract"
is excluded from gross income. When Annuity Payments cease because of the death
of the person upon whose life payments are based and, as of the date of death,
the amount of Annuity Payments excluded from taxable income by the exclusion
ratio does not exceed the "investment in the contract," then the remaining
portion of unrecovered investment is allowed as a deduction in the tax year of
such death.

HOW ARE DISTRIBUTIONS OTHER THAN ANNUITY PAYMENTS TAXED?

Distributions considered to be "amounts not received as an annuity," including a
partial or full surrender or a lump sum alternative after the Annuitant's death,
are generally treated as coming first from "income on the contract" and then as
a return of the "investment in the contracts." The amount of any distribution
that is treated as receipt of "income on the contracts" is includible in the
raxpayer's gross income and taxable in the year it is received. The amount of
the distribution treated as a return of the "investment in the contract" is not
included in gross income. "Income on the contract" for an annuity would be
computed by subtracting from the value of all "related contracts" the taxpayer's
"investment in the contract" (which is an amount equal to total payments for the
contract less any previous distributions or portions thereof from such contract
not included in gross income). "Investment in the contract" may be affected by
whether an annuity was purchased as part of a tax-free exchange of life
insurance or annuity contracts under Section 1035 of the Code.

We believe that "investment in the contract" does not include the Premium paid
for "related contracts" under this Annuity. "Related contracts" mean all annuity
contracts or certificates (other than certain contracts owned in connection with
a tax-qualified retirement arrangement) for which the taxpayer is the beneficial
owner and which are issued by the same insurer within the same calendar year,
irrespective of the named annuitants. "Related contracts" are treated as one
annuity contract when determining the taxation of distributions before
annuitization. While it is clear that "related contracts" include contracts
prior to when annuity payments begin, there is some uncertainty regarding the
manner in which the Internal Revenue Service would view "related contracts" when
one or more contracts are immediate annuities or are contracts that have been
annuitized. We do not believe "related contracts" include immediate annuities or
annuities for which annuity payments have begun. If "related contracts" include
immediate annuities or annuities for which annuity payments have begun, then
"related contracts" would have to be taken into consideration in determining the
taxable portion of each annuity payment (as outlined in the "How Are Annuity
Payments Taxed?" subsection above) as well as in determining the taxable portion
of distributions from an annuity or any "related contracts" before annuity
payments have begun. The Internal Revenue Service has not issued guidance
clarifying this issue as of the date of this Prospectus. We cannot guarantee
that immediate annuities or annuities for which annuity payments have begun
could not be deemed to be "related contracts". You are particularly cautioned to
seek advice from your own tax advisor on this matter.

SPECIAL CONCERNS REGARDING IMMEDIATE ANNUITIES: The Internal Revenue Service has
ruled that the 10% penalty applicable to "non-qualified" immediate annuities
will apply to annuity payments under a contract recognized as an immediate
annuity under state insurance law but not under Section 72 (u) of the Code in an
exchange situation where the Premium for the exchanged contract was paid, or
deemed to have been paid, more than one year prior to the first annuity payment
payable under the immediate annuity; and the annuity payments under the
immediate annuity do not meet the requirements of any other exception to the 10%
penalty.

We believe Annuity Payments are not subject to the 10% penalty if they meet the
substantially equal payment exception under Section 72(q) (relating to
non-qualified contracts) or 72(t) (relating to tax qualified retirement plans or
qualified contracts including individual retirement annuities). If these types
of programs provided by us and other insurance companies are deemed by the
Internal Revenue Code not to meet the substantially equal periodic payments
exception in Section 72(q) or Section 72(t) of the Code and you do not meet any
of the other exceptions under the Code, you may be subject to the 10% penalty
described above.

Distributions, other than Annuity Payments, from the Annuity may be subject a
penalty equal to 10% plus interest, unless an exception applies.

SPECIAL RULES IN RELATION TO TAX-FREE EXCHANGES UNDER SECTION 1035: Section 1035
of the Code permits certain tax-free exchanges of a life insurance, annuity or
endowment contract for an annuity. If the Annuity is purchased through a
tax-free exchange of a life insurance, annuity or endowment contract that was
purchased prior to August 14, 1982, then any distributions other than as annuity
payments will be considered to come:

- - First, from the amount of "investment in the contract" made prior to
August 14, 1982 and exchanged into the annuity;
- - Then, from any "income on the contract" that is attributable to the
Premium payments made prior to August 14, 1982 (including income on such
original Premium after the exchange);
- - Then, from any remaining "income on the contract"; and
- - Lastly, from the remaining "investment in the contract."

Therefore, to the extent a distribution is equal to or less than the investment
in the contract made prior to August 14, 1982, such amounts are not included in
taxable income. Further, distributions received that are considered to be a
return of investment on the contract from Premium made prior to August 14, 1982,
such distributions are not subject to the 10% tax penalty. In all other
respects, the general provisions of the Code apply to distributions from
annuities obtained as part of such an exchange.

ARE THERE TAX CONSIDERATIONS FOR TAX-QUALIFIED RETIREMENT PLANS OR QUALIFIED
CONTRACTS?

There are various types of qualified plans for which the Annuity may be
suitable. Generally, this Annuity may be useful to meet income obligations under
such plans, or for taking distributions, because of the benefits provided by the
Annuity and because the Annuity is a single premium product. Therefore, in many
cases, using the Annuity in conjunction with a qualified plan may require a
transfer or "roll over" from an existing qualified plan. Before purchasing the
Annuity for use in a qualified plan, you should OBTAIN COMPETENT TAX ADVICE
ABOUT THE TAX TREATMENT AND THE SUITABILITY OF SUCH AN INVESTMENT. AMERICAN
SKANDIA DOES NOT OFFER THE ANNUITY TO ALL TYPES OF TAX-QUALIFIED RETIREMENT
PLANS.

CORPORATE PENSION AND PROFIT-SHARING PLANS: The Annuity may be used to fund
employee benefits of various corporate pension and profit-sharing plans
established by corporate employers under Sections 401(a) and 401(k) of the Code.
Contributions to such plans are not taxable to the employee until distributions
are made from the retirement plan.

H.R. 10 PLANS: The Annuity may also be used to fund benefits of retirement plans
established by self-employed individuals for themselves and their employees.
These are commonly known as "H.R. 10 Plans" or "Keogh Plans".

TAX SHELTERED ANNUITIES: Annuities may be used to pay benefits of a tax
sheltered annuity. Under Section 403(b) of the Code, a tax sheltered annuity
("TSA") is a contract into which contributions may be made by certain qualifying
employers such as public schools and certain charitable, educational and
scientific organizations specified in Section 501(c)(3) for the benefit of their
employees.

SECTION 457 PLANS: Under Section 457 of the Code, deferred compensation plans
established by governmental and certain other tax exempt employers for their
employees may invest in annuity contracts. The Code limits contributions and
distributions, and imposes eligibility requirements as well.

INDIVIDUAL RETIREMENT PROGRAM OR "IRA": Section 408 of the Code allows eligible
individuals to maintain an IRA. The Annuity may be used in connection with an
IRA including "roll-over" distributions from certain tax-qualified retirement
plans.

ROTH IRAS: "Roth IRA" is a form of IRA. Contributions to a Roth IRA are not tax
deductible.

SEP IRAS: Eligible employers that meet specified criteria may establish
Simplified Employee Pensions or SEP IRAs.

HOW ARE DISTRIBUTIONS FROM QUALIFIED CONTRACTS TAXED?

Generally, the entire annuity distribution from a qualified annuity will be
taxed as ordinary income unless the premium contained after-tax contributions.
Distributions before a participant's age 59 1/2 from qualified annuities are
subject to a penalty equal to 10% of the amount includible in gross income,
unless an exception applies. We believe that the exception for substantially
equal periodic payments noted in Section 72(t)(2)(A)(iv) of the Code applies to
Annuity Payments if the Annuity is purchased: (i) for life; (ii) for life and a
Certain Period that does not exceed the life expectancy of the participant as
defined in the regulations under the Code; or (iii) for a Certain Period equal
to the participant's life expectancy as defined in the same regulations. We also
believe that the penalty does not apply to any lump sum paid to a Beneficiary if
the Annuitant is the employee participating in the applicable qualified plan.

Distributions, other than Annuity Payments, from a qualified annuity may be
subject to a penalty equal to 10% plus interest, unless an exception applies.

GENERAL TAX CONSIDERATIONS

DIVERSIFICATION: Section 817(h) of the Code provides that a variable annuity
contract, in order to qualify as an annuity, must have an "adequately
diversified" segregated asset account (including investments in a mutual fund by
the segregated asset account of insurance companies). If the diversification
requirements under the Code are not met and the annuity is not treated as an
annuity, the taxpayer will be subject to income tax on the annual gain in the
contract. We believe the Portfolios should comply with the terms of these
regulations.

TRANSFERS BETWEEN SUB-ACCOUNTS: Transfers between Sub-Accounts are not subject
to taxation. The Treasury Department may promulgate guidelines under which a
variable annuity will not be treated as an annuity for tax purposes if persons
with ownership rights have excessive control over the investments underlying
such variable annuity. It is unclear whether such guidelines, if in fact
promulgated, would have retroactive effect. It is also unclear what effect, if
any, such guidelines may have on transfers between the Sub-Accounts offered
pursuant to this Prospectus. We will take any action, including modifications to
your Annuity or the Sub-Accounts, required to comply with such guidelines if
promulgated.

FEDERAL INCOME TAX WITHHOLDING: Section 3405 of the Code provides for Federal
income tax withholding on the portion of a distribution which is includible in
the gross income of the recipient. Amounts to be withheld depend upon the nature
of the distribution. However, under most circumstances a recipient may elect not
to have income taxes withheld or have income taxes withheld at a different rate
by filing a completed election form with us.

Certain distributions, including rollovers, from most Qualified Contracts, may
be subject to automatic 20% withholding for Federal income taxes. This will not
apply to:

- - direct transfers to the trustee of another retirement plan;
- - distributions from an individual retirement account or individual
retirement annuity;
- - distributions required to meet the Required Minimum Distribution rules
under section 401(a)(9),
- - distributions made as substantially equal periodic payments for the life
or life expectancy of the participant in the retirement plan or the life
or life expectancy of such participant and his or her designated
beneficiary under such plan (all Annuity Payments before the Inheritance
Date meet this exception); and
- - certain other distributions where automatic 20% withholding may not
apply.

ESTATE AND GIFT TAX CONSIDERATIONS: You should obtain competent tax advice with
respect to possible Federal and state estate and gift tax consequences flowing
from the ownership and transfer of annuities.

GENERATION-SKIPPING TRANSFERS: Under the Code certain taxes may be due when all
or part of an annuity is transferred to, or a death benefit is paid to, an
individual two or more generations younger than the contract holder. These
generation-skipping transfers generally include those subject to federal estate
or gift tax rules. There is an aggregate $1 million exemption from taxes for all
such transfers. We may be required to determine whether a transaction is a
direct skip as defined in the Code and the amount of the resulting tax. We will
deduct from your Annuity or from any applicable payment treated as a direct skip
any amount of tax we are required to pay.

GENERAL INFORMATION

HOW WILL I RECEIVE STATEMENTS AND REPORTS?

We send any statements and reports required by applicable law or regulation to
you at your last known address of record. You should therefore give us prompt
notice of any address change. We reserve the right, to the extent permitted by
law and subject to your prior consent, to provide any prospectus, prospectus
supplements, confirmations, statements and reports required by applicable law or
regulation to you through our Internet Website at http://www.americanskandia.com
or any other electronic means, including diskettes or CD ROMs. We send a
confirmation statement to you each time a transaction is made affecting Contract
Value, transfers, or withdrawals. We send monthly statements reflecting the
processing done each Annuity Payment Date except after any conversion to fixed
payments. Before any conversion, we also send periodic statements detailing the
activity affecting your Annuity during the calendar quarter. You may request
additional reports. We reserve the right to charge up to $50 for each such
additional report. You should review the information in these statements
carefully.

All errors or corrections must be reported to us at our home office as soon as
possible to assure proper accounting to your Annuity. For transactions that are
confirmed immediately, we assume all transactions are accurate unless you notify
us otherwise within 10 days from the date you receive the confirmation. For
transactions that are only confirmed on the periodic statements, we assume all
transactions are accurate unless you notify us within 10 days from the date you
receive the quarterly statement. All transactions confirmed immediately or by
periodic statement are deemed conclusive after the applicable 10-day period. We
may also send an annual report and a semi-annual report containing applicable
financial statements, as of December 31 and June 30, respectively, to Owners or,
with your prior consent, make such documents available electronically through
our Internet Website or other electronic means.

WHO IS AMERICAN SKANDIA?

American Skandia Life Assurance Corporation ("American Skandia") is a stock life
insurance company domiciled in Connecticut with licenses in all 50 states and
the District of Columbia. American Skandia is a wholly-owned subsidiary of
American Skandia Investment Holding Corporation (the "Parent"), whose ultimate
parent is Skandia Insurance Company Ltd., a Swedish company. American Skandia
markets its products to broker-dealers and financial planners through an
internal field marketing staff. In addition, American Skandia markets through
and in conjunction with financial institutions such as banks that are permitted
directly, or through affiliates, to sell annuities.

American Skandia is in the business of issuing variable annuity and variable
life insurance contracts. American Skandia currently offers the following
products: (a) flexible premium deferred annuities and single premium fixed
deferred annuities that are registered with the SEC; (b) certain other fixed
deferred annuities that are not registered with the SEC; (c) certain group
variable annuities that are exempt from registration with the SEC that serve as
funding vehicles for various types of qualified pension and profit sharing
plans; (d) a single premium variable life insurance policy that is registered
with the SEC; (e) a flexible premium life insurance policy that is registered
with the SEC; and (f) both fixed and variable immediate adjustable annuities.

WHAT ARE SEPARATE ACCOUNTS?

The assets supporting our obligations under the Annuities are held in separate
accounts established under the laws of the State of Connecticut. We are the
legal owner of assets in the separate accounts. Assets supporting fixed annuity
payments after a conversion are held in our general account. Income, gains and
losses from assets allocated to these separate accounts are credited to or
charged against each such separate account without regard to other income, gains
or losses of American Skandia or of any other of our separate accounts. These
assets may only be charged with liabilities which arise from the annuity
contracts issued by American Skandia Life Assurance Corporation. The amount of
our obligation in relation to allocations to the Sub-Accounts is based on the
investment performance of such Sub-Accounts. However, the obligations themselves
are our general corporate obligations.

SEPARATE ACCOUNT B

The assets supporting obligations based on allocations to the variable
investment options are held in Class 7 Sub-Accounts of American Skandia Life
Assurance Corporation Variable Account B, also referred to as "Separate Account
B". Separate Account B consists of multiple Sub-Accounts. The name of each
Sub-Account generally corresponds to the name of the underlying Portfolio. The
names of each Sub-Account are shown in the Statement of Additional Information.
Separate Account B was established by us pursuant to Connecticut law. Separate
Account B also holds assets of other annuities issued by us with values and
benefits that vary according to the investment performance of Separate Account
B. The Sub-Accounts offered pursuant to this Prospectus are Class 7 Sub-Accounts
of Separate Account B. Each class of Sub-Account in Separate Account B has a
different level of charges assessed against such Sub-Accounts. You will find
additional information about these Portfolios in the prospectuses for such
funds.

Separate Account B is registered with the SEC under the Investment Company Act
of 1940 ("Investment Company Act") as a unit investment trust, which is a type
of investment company. This does not involve any supervision by the SEC of the
investment policies, management or practices of Separate Account B. Each
Sub-Account invests only in a Portfolio. We reserve the right to add
Sub-Accounts, to eliminate Sub-Accounts, to combine Sub-Accounts, or to
substitute Portfolios.

VALUES AND BENEFITS BASED ON ALLOCATIONS TO THE SUB-ACCOUNTS WILL VARY WITH THE
INVESTMENT PERFORMANCE OF THE PORTFOLIOS, AS APPLICABLE. WE DO NOT GUARANTEE THE
INVESTMENT RESULTS OF ANY SUB-ACCOUNT. YOUR CONTRACT VALUE ALLOCATED TO THE
SUB-ACCOUNTS MAY INCREASE OR DECREASE. YOU BEAR THE ENTIRE INVESTMENT RISK.

MODIFICATION

We reserve the right to do any or all of the following: (a) combine a
Sub-Account with other Sub-Accounts; (b) combine Separate Account B or a portion
thereof with other separate accounts; (c) deregister Separate Account B under
the Investment Company Act of 1940; (d) operate Separate Account B as a
management investment company under the Investment Company Act of 1940 or in any
other form permitted by law; (e) make changes required by any change in the
Securities Act of 1933, the Exchange Act of 1934 or the Investment Company Act
of 1940; (f) make changes that are necessary to maintain the tax status of the
Annuity under the Internal Revenue Code; and (g) make changes required by any
change in other Federal or state laws relating to immediate annuities; and (h)
discontinue offering any variable investment option at any time.

Also, from time to time, we may make additional Sub-Accounts available to new
Annuity purchasers. These Sub-Accounts will invest in Portfolios we believe to
be suitable for the Annuity. We may or may not make a new Sub-Account available
to invest in any new Portfolio should such a Portfolio be made available to
Separate Account B.

We may eliminate Sub-Accounts, combine two or more Sub-Accounts or substitute
one or more new Portfolios for the one in which a Sub-Account is invested.
Substitutions may be necessary if we believe a Portfolio no longer suits the
purpose of the Annuity. This may happen due to a change in laws or regulations,
or a change in the investment objectives or restrictions of a Portfolio, or
because the Portfolio is no longer available for investment, or for some other
reason. We would obtain prior approval from the insurance department of our
state of domicile, if so required by law, before making such a substitution,
deletion or addition. We also would obtain prior approval from the SEC so long
as required by law, and any other required approvals before making such a
substitution, deletion or addition.

We reserve the right to transfer assets of the Separate Account, which we
determine to be associated with the class of contracts to which your Annuity
belongs, to another separate account. We notify you and any payee of any
modification to the Annuity. We may endorse the Annuity to reflect the change.

WHAT IS THE LEGAL STRUCTURE OF THE PORTFOLIOS?

Each Portfolio is registered as an open-end management investment company under
the Investment Company Act. Shares of the Portfolios are sold to separate
accounts of life insurance companies offering variable annuity and variable life
insurance products. The shares may also be sold directly to qualified pension
and retirement plans.

VOTING RIGHTS

We are the legal owner of the shares of the Portfolios in which the Sub-Accounts
invest. However, under SEC rules, you have voting rights in relation to Contract
Value maintained in the Sub-Accounts. If a Portfolio requests a vote of
shareholders, we will vote our shares in the manner directed by Owners with
Contract Value allocated to that Sub-Account. Owners have the right to vote an
amount equal to the number of shares attributable to their contracts. If we do
not receive voting instructions in relation to certain shares, we will vote
those shares in the same manner and proportion as the shares for which we have
received instructions. We will furnish those Owners who have Contract Value
allocated to a Sub-Account whose Portfolio has requested a "proxy" vote with the
necessary forms to provide us with their instructions. Generally, you will be
asked to provide instructions for us to vote on matters such as changes in a
fundamental investment strategy, adoption of a new investment advisory
agreement, or matters relating to the structure of the Portfolio that require a
vote of shareholders.

MATERIAL CONFLICTS

It is possible that differences may occur between companies that offer shares of
a Portfolio to their respective separate accounts issuing variable annuities
and/or variable life insurance products. Differences may also occur surrounding
the offering of a Portfolio to variable life insurance policies and variable
annuity contracts that we offer. Under certain circumstances, these differences
could be considered "material conflicts," in which case we would take necessary
action to protect persons with voting rights under our variable annuity
contracts and variable life insurance policies against persons with voting
rights under other insurance companies' variable insurance products. If a
"material conflict" were to arise between owners of variable annuity contracts
and variable life insurance policies issued by us we would take necessary action
to treat such persons equitably in resolving the conflict. "Material conflicts"
could arise due to differences in voting instructions between owners of variable
life insurance and variable annuity contracts of the same or different
companies. We monitor any potential conflicts that may exist.

TRANSFERS, ASSIGNMENTS OR PLEDGES

Generally, vested rights in an Annuity may be transferred, assigned or pledged
for loans at any time. However, these rights may be limited depending on the use
of the Annuity. Generally, transfers, assignments or pledges to another person
or entity may occur at any time prior to the death of the last surviving
Annuitant. We generally will not accept transfers, assignments or pledges after
such death. You must request a transfer or provide us a copy of the assignment
in writing. A transfer or assignment is subject to our acceptance. Prior to
receipt of this notice, we will not be deemed to know of or be obligated under
any assignment prior to our receipt and acceptance thereof. We assume no
responsibility for the validity or sufficiency of any assignment.

DEFERRAL OF TRANSACTIONS

We may defer payment of proceeds of any distribution before the exercise of the
conversion right for which we have received all our requirements for a period
not to exceed 7 calendar days from the date the transaction is effected. We may
defer any payment from the general account of proceeds of any distribution after
the exercise of the conversion right for a period not to exceed the lesser of 6
months or the period permitted by law.

All procedures, including payment, based on the valuation of the Sub-Accounts
may be postponed during the period: (1) the New York Stock Exchange is closed
(other than customary holidays or weekends) or trading on the New York Stock
Exchange is restricted as determined by the SEC; (2) the SEC permits
postponement and so orders; or (3) the SEC determines that an emergency exists
making valuation or disposal of securities not reasonably practical.

WHO DISTRIBUTES ANNUITIES OFFERED BY AMERICAN SKANDIA?

American Skandia Marketing, Incorporated ("ASM"), a wholly-owned subsidiary of
American Skandia Investment Holding Corporation, is the distributor and
principal underwriter of the securities offered through this prospectus. ASM
acts as the distributor of a number of annuity and life insurance products we
offer and both American Skandia Trust and American Skandia Advisor Funds, Inc.,
a family of retail mutual funds. ASM's principal business address is One
Corporate Drive, Shelton, Connecticut 06484. ASM is registered as broker-dealer
under the Securities Exchange Act of 1934 ("Exchange Act") and is a member of
the National Association of Securities Dealers, Inc. ("NASD").

The Annuity is offered on a continuous basis. ASM enters into distribution
agreements with independent broker-dealers who are registered under the Exchange
Act and with entities that may offer the Annuity but are exempt from
registration. Applications for the Annuity are solicited by registered
representatives of those firms. Such representatives will also be our appointed
insurance agents under state insurance law. In addition, ASM may offer the
Annuity directly to potential purchasers.

Compensation is paid to firms on sales of the Annuity according to one or more
schedules. The individual representative will receive a portion of the
compensation, depending on the practice of the firm. Commissions and other
compensation paid in relation to the Annuity do not result in any additional
charge to you or to the Separate Account.

In addition, firms may receive separate compensation or reimbursement for, among
other things, training of sales personnel, marketing or other services they
provide to us or our affiliates. We or ASM may enter into compensation
arrangements with certain firms. These arrangements will not be offered to all
firms and the terms of such arrangements may differ between firms. Any such
compensation will be paid by us or ASM and will not result in any additional
charge to you. To the extent permitted by NASD rules and other applicable laws
and regulations, ASM may pay or allow other promotional incentives or payments
in the form of cash or other compensation.

ADVERTISING

We may advertise certain information regarding the performance of the
Sub-Accounts. Details on how we calculate performance for the Sub-Accounts are
found in the Statement of Additional Information. This information may help you
review the performance of the investment options and provide a basis for
comparison with other annuities. It may be less useful when comparing the
performance of the investment options with other savings or investment vehicles.
Such other investments may not provide some of the benefits of annuities, or may
not be designed for long-term investment purposes. Additionally other savings or
investment vehicles may not be receive the beneficial tax treatment given to
annuities under the Code.

UNLESS OTHERWISE PERMITTED BY LAW OR REGULATION, PERFORMANCE INFORMATION IS
SHOWN BASED ON AN ASSUMED PREMIUM, AGE AND GENDER OF AN ANNUITANT, AN ASSUMED
ISSUE DATE AND ANNUITY DATE, ETC. UNLESS THE ANNUITY ISSUED EXACTLY MATCHES THE
ASSUMPTIONS USED, PERFORMANCE INFORMATION CANNOT EXACTLY MATCH HOW AN ANNUITY
YOU OWNED OR MIGHT HAVE OWNED WOULD HAVE PERFORMED.

Information regarding performance of the Portfolios may provide a partial basis
for comparison with other annuities. However, when making such a comparison, you
should note whether such other annuities provide guarantees and features similar
to or different from those provided pursuant to the Annuities. Such information
may only be partially useful in comparing Annuities to other products or
investment programs designed to provide periodic income. In making any such
comparisons, you should not only compare features and benefits, but should also
compare risks, charges, tax treatment, and treatment of such vehicles for other
purposes, such as eligibility for governmental assistance programs, bankruptcy,
communal property, etc.

These performance measures may have only limited use when comparing the
performance of the investment options with savings or investment vehicles
designed for accumulation of wealth, rather than for immediate and on-going
income. Such vehicles may not provide some of the benefits of immediate
annuities, or may not be designed for income purposes. Additionally, such
savings or investment vehicles may not be treated like immediate annuities under
the Internal Revenue Code.

Performance information on the investment options is based on past performance
only and is no indication of future performance. Actual performance will depend
on the type, quality and, for some of the investment options, the maturities of
the investments held by the Portfolios and upon prevailing market conditions and
the response of the Portfolios to such conditions. Actual performance will also
depend on changes in the expenses of the Portfolios. Such changes are reflected,
in turn, in the investment options which invest in such Portfolios. In addition,
the amount of charges assessed against each investment option will affect
performance.

Some of the Portfolios existed prior to the inception of these Sub-Accounts.
Performance quoted in advertising regarding such Sub-Accounts may indicate
periods during which the Sub-Accounts have been in existence but prior to the
initial offering of the Annuities, or periods during which the Portfolios have
been in existence, but the Sub-Accounts have not. Such hypothetical performance
is calculated using the same assumptions employed in calculating actual
performance since inception of the Sub-Accounts.

Advertisements we distribute may also compare the performance of our
Sub-Accounts with: (a) certain unmanaged market indices, including but not
limited to the Dow Jones Industrial Average, the Standard & Poor's 500, the
Shearson Lehman Bond Index, the Frank Russell non-U.S. Universal Mean, the
Morgan Stanley Capital International Index of Europe, Asia and Far East Funds,
and the Morgan Stanley Capital International World Index; and/or (b) other
management investment companies with investment objectives similar to the mutual
fund or portfolio underlying the Sub-Accounts being compared. This may include
the performance ranking assigned by various publications, including but not
limited to the Wall Street Journal, Forbes, Fortune, Money, Barron's, Business
Week, USA Today and statistical services, including but not limited to Lipper
Analytical Services Mutual Funds Survey, Lipper Annuity and Closed End Survey,
the Variable Annuity Research Data Survey, SEI, the Morningstar Mutual Fund
Sourcebook and the Morningstar Variable Annuity/Life Sourcebook.

American Skandia Life Assurance Corporation may advertise its rankings and/or
ratings by independent financial ratings services. Such rankings may help you in
evaluating our ability to meet our obligations in relation to paying fixed
Annuity Payments, guarantee a minimum level of Annuity Payments, or administer
Annuities. Such rankings and ratings do not reflect or relate to the performance
of Separate Account B.

ILLUSTRATIONS: You may be provided a hypothetical illustration of how an Annuity
may perform, based on your age, gender, a proposed PREMIUM, ETC. WE DO NOT
GUARANTEE THAT ANY ANNUITY WILL PERFORM AS ILLUSTRATED. ANY SUCH ILLUSTRATION IS
NOT VALID UNLESS PRECEDED BY OR ACCOMPANIED BY THIS PROSPECTUS. No illustration
is valid unless it includes examples of how the Annuity would perform assuming
Net Investment Performance both at a rate of zero and at the Benchmark Rate in
addition to any examples assuming some other interest rate. In addition, no
illustration is valid if it projects hypothetical Net Investment Performance in
the future in excess of 12% per year.

When applicable, an illustration would indicate any joint Owner and the age and
gender of any joint Annuitant. Values may be expressed as a percentage of the
Premium. In addition to the Annuity Payment Amounts, the following values may be
illustrated: Cash Value; alternative taxable income, (the income needed from an
investment taxed at ordinary income rates to which the exclusionary rules of the
Code would not apply to achieve the same after tax income); the effective rate
of return (the yield, assuming payment of the Cash Value as of the date
illustrated); the cumulative return to-date (the total amount paid, assuming
payment of the Lump Sum Alternative as of the date illustrated). Illustrations
may be provided on paper, and may be provided in color.

Illustrations may be provided in a format other than on paper. For example, we
may provide illustrations for presentation on a computer screen or in a video
format.

AVAILABLE INFORMATION

A Statement of Additional Information is available from us without charge upon
your request. This Prospectus is part of the registration statement we filed
with the SEC regarding this offering. Additional information on us and this
offering is available in those registration statements and the exhibits thereto.
You may obtain copies of these materials at the prescribed rates from the SEC's
Public Reference Section, 450 Fifth Street N.W., Washington, D.C., 20549. You
may inspect and copy those registration statements and exhibits thereto at the
SEC's public reference facilities at the above address, Room 1024, and at the
SEC's Regional Offices, 7 World Trade Center, New York, NY, and the Everett
McKinley Dirksen Building, 219 South Dearborn Street, Chicago, IL. These
documents, as well as documents incorporated by reference, may also be obtained
through the SEC's Internet Website (http://www.sec.gov) for this registration
statement as well as for other registrants that file electronically with the
SEC.

HOW TO CONTACT US

You can contact us by:

- - calling our Concierge Desk at 1-800-752-6342; or
- - writing to us at American Skandia Life Assurance Corporation, P.O. Box
883, Shelton, Connecticut 06484-0883, Attention: Concierge Desk; or
- - sending us an email to our electronic mail address at
[email protected]; or
- - accessing information about your Annuity through our Internet Website at
http://www.americanskandia.com.

We may require that you present proper identification before performing
transactions over the telephone, e-mail or through our Internet website. This
may include a Personal Identification Number or PIN that will be provided to you
on or about the time that your Annuity is issued. To the extent permitted by
law, we will not be responsible for any claims, loss, liability or expense in
connection with a transaction requested by telephone or other electronic means
if we acted on such transaction instructions after following reasonable
procedures to identify those persons authorized to perform transactions on your
Annuity using verification methods which may include a request for your Social
Security number, PIN or other form of electronic identification. We may be
liable for losses due to unauthorized or fraudulent instructions if we did not
follow such procedures.

INDEMNIFICATION

Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the "Securities Act") may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in the Securities Act and is therefore unenforceable.

CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION

The following are the contents of the Statement of Additional Information:

General Information Regarding American Skandia Life Assurance Corporation
Principal Underwriter
Calculation of Performance Data
Unit Price Determinations
Independent Auditors
Legal Experts
Financial Statements

<PAGE>

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
ATTENTION: CONCIERGE DESK

FOR WRITTEN REQUESTS:

P.O. BOX 883
SHELTON, CONNECTICUT 06484

FOR ELECTRONIC REQUESTS:

[email protected]

FOR REQUESTS BY PHONE:

1-800-752-6342

- --------------------------------------------------------------------------------
PLEASE SEND ME A STATEMENT OF ADDITIONAL INFORMATION THAT
CONTAINS FURTHER DETAILS ABOUT THE AMERICAN SKANDIA ANNUITY
DESCRIBED IN PROSPECTUS VIAT-PROS (XX/XXXX).
- --------------------------------------------------------------------------------

-------------------------------------------------------
(print your name)

-------------------------------------------------------
(address)

-------------------------------------------------------
(City/State/Zip Code)

<PAGE>

ADDITIONAL INFORMATION: Inquiries will be answered by calling your
representative or by writing to:

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION

P.O. Box 883
Shelton, Connecticut 06484

[email protected]

Issued by: Serviced at:

AMERICAN SKANDIA LIFE AMERICAN SKANDIA LIFE
ASSURANCE CORPORATION ASSURANCE CORPORATION
One Corporate Drive P.O. Box 883
Shelton, Connecticut 06484 Shelton, Connecticut 06484
Telephone: 1-800-752-6342 Telephone: 1-800-752-6342
http://www.AmericanSkandia.com http://www.AmericanSkandia.com

Distributed by:

AMERICAN SKANDIA MARKETING, INCORPORATED
One Corporate Drive
Shelton, Connecticut 06484
Telephone: 203-926-1888
http://www.AmericanSkandia.com

STATEMENT OF ADDITIONAL INFORMATION

The Annuities are registered under the Securities Act of 1933 and the Investment
Company Act of 1940. The ANNUITIES ARE ISSUED BY AMERICAN SKANDIA LIFE ASSURANCE
CORPORATION VARIABLE ACCOUNT B (CLASS 7 SUB-ACCOUNTS) and AMERICAN SKANDIA LIFE
ASSURANCE CORPORATION.

THIS STATEMENT OF ADDITIONAL INFORMATlON IS NOT A PROSPECTUS. THE INFORMATION
CONTAINED HEREIN SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR THE
ANNUITIES WHICH ARE REFERRED TO HEREIN.

THE PROSPECTUS SETS FORTH INFORMATION THAT A PROSPECTIVE INVESTOR OUGHT TO KNOW
BEFORE lNVESTING. FOR A COPY OF THE PROSPECTUS SEND A WRITTEN REQUEST TO
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION, P.O. BOX 883, SHELTON,
CONNECTICUT 06484, OR TELEPHONE 1-800-752-6343.

Prospectus Dated: [DATE], XXXX
Statement of Additional Information Dated: [DATE], XXXX

TABLE OF CONTENTS

ITEM PAGE

General Information Regarding American Skandia Life Assurance Corporation 1
Principal Underwriter 1
Calculation of Performance Data 2
Unit Price Determinations 5
Independent Auditors 5
Legal Experts 6
Financial Statements 6

GENERAL INFORMATION REGARDING AMERICAN SKANDIA LIFE ASSURANCE CORPORATION:
American Skandia Life Assurance Corporation ("we", "our" or "us") is a
wholly-owned subsidiary of American Skandia Investment Holding Corporation whose
indirect parent is Skandia Insurance Company Ltd. Skandia Insurance Company Ltd.
is part of a group of companies whose predecessor commenced operations in 1855.
Skandia Insurance Company Ltd. is a major worldwide insurance company operating
from Stockholm, Sweden which owns and controls, directly or through subsidiary
companies, numerous insurance and related companies. We are organized as a
Connecticut stock life insurance company, and are subject to Connecticut law
governing insurance companies. Our mailing address is P.O. Box 883, Shelton,
Connecticut 06484.

PRINCIPAL UNDERWRITER: American Skandia Marketing, Incorporated ("ASM, Inc.")
serves as principal underwriter for the Annuities. We, ASM, Inc. and American
Skandia Investment Services, Incorporated ("ASISI"), the investment manager of
the American Skandia Trust, are wholly-owned subsidiaries of American Skandia
Investment Holding Corporation. Most of the Class 7 Sub-Accounts of Separate
Account B invest in portfolios offered by American Skandia Trust.

Annuities may be sold by agents of ASM, Inc. or agents of securities brokers or
insurance brokers who enter into agreements with ASM, Inc. and who are legally
qualified under federal and state law to sell the Annuities in those states
where the Annuities are to be offered. The Annuities are offered on a continuous
basis. ASM, Inc. is registered with the Securities and Exchange Commission under
the Securities Exchange Act of 1934 as a broker dealer and is a member of the
National Association of Securities Dealers, Inc. (`NASD"). ASM, Inc. receives no
underwriting commissions.

VIAT-SAI [XX/XXXX]

CALCULATION OF PERFORMANCE DATA:

We provide two types of performance information: (a) the "effective rate of
return", which is the yield of the Annuity; and (b) the cumulative return
to-date.

The performance of an Annuity over time depends on: (a) Net Investment
Performance; (b) the age of the Annuitant at the time the Annuity is issued; (c)
the gender of the Annuitant (unless applicable law or regulation requires that
we ignore gender); (d) the Annuity plan issued, particularly, the applicable
Benchmark Rate and Annuity Factors for such plan; and (e) what lump sum, if any,
is available at the end of the period. In order to provide performance
information, we assume that a hypothetical Annuity was issued at the beginning
of the period to be measured, and that:

(1) The Annuitant was [ ] on the Issue Date;

(2) The Annuitant was male, and that gender affected the Annuity
Factors; and

(3) A lump sum is being paid to the Beneficiary as of that date in lieu
of Annuity Payments.

Most of the underlying mutual fund portfolios ("Portfolios") existed prior to
the inception of the Sub-Accounts. In order to give you a basis for analyzing
the performance of the various investment options over as long a time as
possible, we assume the issuance of a hypothetical Annuity investing solely in
the applicable investment option from the date the Portfolio commenced
operations. Therefore, performance quoted in advertising regarding such
Sub-Accounts may indicate periods prior to the initial offering of the
Annuities.

To the extent allowed by law or regulation, as well as the rules of applicable
self-regulatory organizations such as the NASD, we may also provide hypothetical
performance of an Annuity as if a hypothetical Portfolio performed exactly like:
(a) a common market index, such as the Standard & Poor's 500; or (b) a stated
weighted average of such an index with an index of the performance of debt
instruments, such as an index measuring the return of corporate bonds. This
latter method of using a stated weighted average may be particularly helpful if
you are considering utilizing an investment option that expects to maintain
significant portions of its assets in both equity and debt instruments.

Shown on the following page are effective rate of return and cumulative return
to-date figures for the periods shown for life and certain plan with a certain
period of [ ] years. The "inception-to-date" figures shown below are based on
the inception date of a Portfolio. Any performance of such Portfolios prior to
inception of a Sub-Account is provided by the Portfolios. The total return for
any Sub-Account reflecting performance prior to such Sub-Account's inception is
based on such information.

CLASS 7 SUB-ACCOUNTS EFFECTIVE RATE OF RETURN CUMULATIVE RETURN TO-DATE
[TO BE FILED BY AMENDMENT]

AFTER: AFTER:
<CAPTION>

- ---------------------------------------- --------- ---------- --------- ----------- ---- ---------- ---------- --------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SUB-ACCOUNT: 1 YEAR 3 YEARS 5 YEARS INCEPTION TO 1 YEAR 3 YEARS 5 YEARS INCEPTION
DATE TO DATE
- ---------------------------------------- --------- ---------- --------- ----------- ---- ---------- ---------- --------- -----------
AST Founders Passport
AST T. Rowe Price International Equity
AST AIM International Equity
AST American Century International Growth
AST MFS Global Equity
AST Kemper Small-Cap Growth
AST Lord Abbett Small Cap Value
AST T. Rowe Price Small Company Value
AST Neuberger Berman Mid-Cap Growth
AST Neuberger Berman Mid-Cap Value
AST T.Rowe Price Natural Resources
AST Oppenheimer Large-Cap Growth
AST Marsico Capital Growth
AST JanCap Growth
AST MFS Growth
AST Bankers Trust Managed Index 500
AST Cohen & Steers Realty
AST American Century Income & Growth
AST Lord Abbett Growth and Income
AST MFS Growth with Income
AST INVESCO Equity Income
AST AIM Balanced
AST American Century Strategic Balanced
AST T. Rowe Price Asset Allocation
AST T. Rowe Price International Bond
AST Federated High Yield
AST PIMCO Total Return Bond
AST PIMCO Limited Maturity Bond
AST Money Market

MV Emerging Markets

Rydex Nova
Rydex Ursa
Rydex OTC

INVESCO VIF Technology
INVESCO VIF Health Sciences
INVESCO VIF Financial Services
INVESCO VIF Telecommunications
INVESCO VIF Dynamics

Evergreen VA Global Leaders
Evergreen VA Special Equity

ProFund VP Europe 30
ProFund VP SmallCap
ProFund VP UltraOTC

- ---------------------------------------- --------- ---------- --------- ----------- ---- ---------- ---------- --------- -----------
</TABLE>

The performance quoted in any advertising should not be considered a
representation of the performance of these Sub-Accounts in the future since
performance is not fixed.

Net Investment Performance will depend on the type, quality and, for some of the
Sub-Accounts, the maturities of the investments held by the Portfolios and upon
prevailing market conditions and the response of the Portfolios to such
conditions. Net Investment Performance will also depend on changes in the
expenses of the Portfolios.

The information provided by these measures may be useful in comparing the
performance of the Sub-Accounts that you may utilize. It may have only a limited
usefulness in comparison with other annuities, given that, as of the date of
this Statement, we were unaware of any annuities structured in a similar
fashion. (To our knowledge, other variable immediate annuities are structured
such that investment performance always directly affects the amount of each
Annuity Payment, not any Inheritance Period.) These measures may be even less
useful in providing a basis for comparison with other investments that neither
provide some of the benefits of the Annuities or the benefits of other variable
immediate annuities.

UNIT PRICE DETERMINATIONS: For each Sub-Account the initial Unit Price is
$10.00. The Unit Price for each subsequent Valuation Period is the net
investment factor for that Valuation Period, multiplied by the Unit Price for
the immediately preceding Valuation Period. The net investment factor is (1)
divided by (2), less (3), where:

(1) is the net result of:

(a) the net asset value per share of the Portfolio at the end of
the current Valuation Period plus the per share amount of any
dividend or capital gain distribution declared and unpaid
(accrued) by the Portfolio; plus or minus

(b) any per share charge or credit during the Valuation Period as
a provision for taxes attributable to the operation or
maintenance of that Sub-account.

(2) is the net result of:

(a) the net asset value per share of the Portfolio at the end of
the preceding Valuation Period plus the per share amount of any
dividend or capital gain distribution declared and unpaid
(accrued) by the Portfolio; plus or minus

(b) any per share charge or credit during the preceding Valuation
Period as a provision for taxes attributable to the operation or
maintenance of the Sub-Account.

(3) is the mortality and expense risk charges and the administration charge.

We value the assets in each Sub-Account at their fair market value in accordance
with accepted accounting practices and applicable laws and regulations. The net
investment factor may be greater than, equal to, or less than one.

INDEPENDENT AUDITORS: Ernst & Young LLP, Goodwin Square, 225 Asylum Street,
Hartford, Connecticut 06103, independent auditors, have audited the financial
statements of American Skandia Life Assurance Corporation with respect to the
year ended December 31, 1998 and 1997. Deloitte & Touche LLP, Two World
Financial Center, New York, New York 10281-1433, independent auditors, have
audited the financial statements of American Skandia Life Assurance Corporation
with respect to the years ended December 31, 1996, 1995, 1994 and 1993.. Audited
consolidated statements of financial condition of American Skandia Life
Assurance Corporation as of December 31, 1997 and 1996, and the related
consolidated statements of operations, shareholder's equity and cash flows for
each of the three years in the period ended December 31, 1997 are included in
the Prospectus. The financial statements included herein have been audited by
Ernst & Young LLP and Deloitte & Touche LLP, independent auditors, as set forth
in their respective reports herein, and are included in reliance upon such
reports given upon the authority of each firm as experts in accounting and
auditing.

LEGAL EXPERTS: T. Richard Kennedy, Esq., General Counsel for American Skandia
Life Assurance Corporation, has reviewed the registration statement with respect
to Federal laws and regulations applicable to the issue and sale of the
Annuities and with respect to Connecticut law.

FINANCIAL STATEMENTS: The financial statements which follow in Appendix A are
those of American Skandia Life Assurance Corporation. Financial Statements for
American Skandia Life Assurance Corporation Separate Account B

Class 7 are not provided as the Accounts have not yet begun operations.

To the extent and only to the extent that any statement in a document
incorporated by reference into this Statement of Additional Information is
modified or superseded by a statement in this Statement of Additional
Information or in a later-filed document, such statement is hereby deemed so
modified or superseded and not part of this Statement of Additional Information.

We furnish you without charge a copy of any or all the documents incorporated by
reference in this Statement of Additional Information, including any exhibits to
such documents which have been specifically incorporated by reference. We do so
upon receipt of your written or oral request. Please address your request to
American Skandia Life Assurance Corporation, Attention: Concierge Desk, P.O. Box
883, Shelton, Connecticut, 06484. Our phone number is 1-(800) 752-6342.

<PAGE>

APPENDIX A

FINANCIAL STATEMENTS FOR AMERICAN SKANDIA LIFE ASSURANCE CORPORATION AND
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION SEPARATE ACCOUNT B CLASS 7

(Financial Statement for American Skandia Life Assurance Corporation
will be filed by Amendment)

(Financial statements for American Skandia Life Assurance Corporation Separate
Account F Class 7 are not provided as the Accounts have not yet begun
operations.

<PAGE>

PART C

OTHER INFORMATION

<PAGE>

<TABLE>
<CAPTION>
Item 24. Financial Statements and Exhibits:

(a) All financial statements are included in Parts A & B of this Registration
Statement.

(b) Exhibits are attached as indicated.

(1) Copy of the resolution of the board of directors of Depositor
authorizing the establishment of the Registrant for Separate
Account B filed via EDGAR with Post-Effective Amendment No. 6
to Registration Statement No. 33-87010, filed March 2, 1998.

(2) Not applicable. American Skandia Life Assurance Corporation
maintains custody of all assets.

(3) (a) Form of revised Principal Underwriting Agreement
between American Skandia Life Assurance Corporation
and American Skandia Marketing, Incorporated,
formerly known as Skandia Life Equity Sales
Corporation filed via EDGAR with Post-Effective
Amendment No. 6 to Registration Statement No.
33-87010, filed March 2, 1998.

(b) Form of Revised Dealer Agreement filed via EDGAR with
Post-Effective Amendment No. 7 to Registration
Statement No. 33-87010, filed April 24, 1998.

<S> <C> <C>
(4) (a) Copy of the Form of Annuity Contract. FILED HEREWITH

(b) Copy of Required Minimum Distribution Endorsement. FILED HEREWITH

(5) A copy of the application form used with the Annuity. FILED HEREWITH

(6) (a) Copy of the certificate of incorporation of
American Skandia Life Assurance Corporation filed via
EDGAR with Post-Effective Amendment No. 6 to
Registration Statement No. 33-87010, filed March 2,
1998.

(b) Copy of the By-Laws of American Skandia Life
Assurance Corporation filed via EDGAR with
Post-Effective Amendment No. 6 to Registration
Statement No. 33-87010, filed March 2, 1998.

(7) Annuity Reinsurance Agreements between Depositor and:

(a) Transamerica Occidental Life Assurance Company
effective May 1, 1995, filed via EDGAR with
Post-effective Amendment No. 3 to Registration
Statement No. 33-87010, filed April 25, 1996.

(b) PaineWebber Life Insurance Company effective January
1, 1995, filed via EDGAR with Post-effective
Amendment No. 3 to Registration Statement No.
33-87010, filed April 25, 1996.

(c) Connecticut General Life Insurance Company effective
January 1, 1995, filed via EDGAR with Post-effective
Amendment No. 3 to Registration Statement No.
33-87010, filed April 25, 1996.

(8) Agreements between Depositor and:

(a) The Alger American Fund filed via EDGAR with
Post-Effective Amendment No. 6 to Registration
Statement No. 33-87010, filed March 2, 1998.

(b) American Skandia Trust filed via EDGAR with
Post-Effective Amendment No. 4 to Registration
Statement No. 33-87010, filed February 25, 1997 (At
such time, what later became American Skandia Trust
was known as the Henderson Global Asset Trust).

(c) The Montgomery Funds III filed via EDGAR in the
Initial Registration Statement to Registration
Statement No. 333-08853, filed July 25, 1996.

(d) Rydex Variable Trust filed via EDGAR with
Post-Effective Amendment No. 8 to Registration
Statement 33-87010, filed April 26, 1999.

(9) Opinion and Consent of Counsel. TO BE FILED BY AMENDMENT

(10) (a) Consent of Ernst & Young LLP TO BE FILED BY AMENDMENT
(b) Consent of Deloitte & Touche LLP. TO BE FILED BY AMENDMENT
</TABLE>

(11) Not applicable.

(12) Not applicable.

(13) Calculation of Performance Information for Advertisement of
Performance filed via EDGAR with Post-effective Amendment No.
12 to Registration Statement No. 33-44436, filed April 29,
1996.

(14) Financial Data Schedule

Item 25. Directors and Officers of the Depositor: The Directors and Officers of
the Depositor are as follows:

Our executive officers, directors and certain significant employees, their ages,
positions with us and principal occupations are indicated below. The immediately
preceding work experience is provided for officers that have not been employed
by us or an affiliate for at least five years as of the date of this Prospectus.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Name/ Position with American Skandia
Age Life Assurance Corporation Principal Occupation

Robert M. Arena Vice President, Vice President,
30 Director of Product Director of Product Management:
Management American Skandia Life
Assurance Corporation

Mr. Arena joined us in 1995. He previously held an internship position with KPMG
Peat Marwick in 1994 and the position of Group Sales Representative with Paul
Revere Insurance from October, 1990 to August, 1993.

Gordon C. Boronow* President and President and
46 Deputy Chief Executive Officer Deputy Chief Executive Officer:
Director (since July, 1991) American Skandia Life
Assurance Corporation

Nancy F. Brunetti Executive Vice President Executive Vice President,
37 Director (since February, 1996) Chief Logistics Officer:
American Skandia Life
Assurance Corporation

Malcolm M. Campbell Director (since July, 1991) Director of Operations and
43 Chief Actuary, Assurance and
Financial Services Division:
Skandia Insurance Company Ltd.

Jan R. Carendi* Chief Executive Senior Executive Vice President and
54 Officer and Member of Executive Management Group:
Chairman of the Skandia Insurance Company Ltd.
Board of Directors
Director (since May, 1988)

Y.K. Chan Senior Vice President and Senior Vice President and
41 Chief Information Officer Chief Information Officer:
American Skandia Life
Assurance Corporation

Mr. Chan joined us in 1999. He previously held the position of Chief Information
Officer with E.M. Warburg Pincus from January 1995 until April 1999 and the
position of Vice President, Client Server Application Development from January
1991 until January 1995.

Lincoln R. Collins Executive Vice President Executive Vice President,
38 Director (since February, 1996) Chief Operating Officer
American Skandia Life
Assurance Corporation

Henrik Danckwardt Director (since July, 1991) Director of Finance
45 and Administration,
Assurance and Financial
Services Division:
Skandia Insurance Company Ltd.

Harold Darak Vice President, Service Operations Vice President,
38 Service Operations
American Skandia Life
Assurance Corporation

Mr. Darak joined us in 1999. He previously held the positions of Sr. Manager
with Deloitte & Touche from February 1998 until November 1999 and Second Vice
President with Guardian Life Insurance Company of America from February 1996
until February 1998 and he was Second Vice President at The Travelers where he
was employed from 1982 until 1995.

Wade A. Dokken Director (since July, 1991) President and Deputy
39 Chief Executive Officer:
American Skandia Marketing, Incorporated

Larisa Gromyko Director of Compliance Director of Compliance:
53 American Skandia Life
Assurance Corporation

Brian L. Hirst Vice President, Vice President,
51 Corporate Actuary Corporate Actuary:
American Skandia Life
Assurance Corporation

Mr. Hirst joined us in 1996. He previously held the positions of Vice President
from 1993 to 1996 and Second Vice President from 1987 to 1992 at Allmerica
Financial.

N. David Kuperstock Vice President, Vice President,
47 Product Development Product Development:
American Skandia Life
Assurance Corporation

Thomas M. Mazzaferro Executive Vice President and Executive Vice President and
46 Chief Financial Officer, Chief Financial Officer:
Director (since September, 1994) American Skandia Life
Assurance Corporation

Gunnar J. Moberg Director (since October, 1994) Director - Marketing and Sales,
44 Assurances and Financial
Services Division:
Skandia Insurance Company Ltd.

David R. Monroe Senior Vice President, Senior Vice President,
37 Treasurer and Treasurer and
Corporate Controller Corporate Controller:
American Skandia Life
Assurance Corporation

Mr. Monroe joined us in 1996. He previously held positions of Assistant Vice
President and Director at Allmerica Financial from August, 1994 to July, 1996
and Senior Manager at KPMG Peat Marwick from July, 1983 to July, 1994.

Polly Rae Vice President Vice President,
36 Key Account Operations Key Account Operations:
American Skandia Life
Assurance Corporation

Rodney D. Runestad Vice President Vice President:
49 American Skandia Life
Assurance Corporation

Anders O. Soderstrom Executive Vice President Executive Vice President:
39 Director (since September, 1994) American Skandia Life
Assurance Corporation

William H. Strong Vice President, Vice President,
55 Product Innovation Product Innovation:
American Skandia Life
Assurance Corporation

Mr. Strong joined us in 1997. He previously held the position of Vice President
with American Financial Systems from June 1994 to October 1997 and the position
of Actuary with Connecticut Mutual Life from June 1965 to June 1994.

Amanda C. Sutyak Executive Vice President Vice President:
41 Director (since July, 1991) American Skandia
Marketing, Incorporated

C. Ake Svensson Director (since December, 1994) Director of
48 Business Development:
American Skandia, Inc.

Mr. Svensson joined us in 1994. He previously held the position of Senior Vice
President with Nordenbanken.

Mary Toumpas Director of Advertising Compliance Vice President and
48 Compliance Director:
American Skandia
Marketing, Incorporated

Ms. Toumpas joined us in 1997. She previously held the position of Assistant
Vice President with Chubb Life/Chubb Securities.

Bayard F. Tracy Director (since September, 1994) Senior Vice President,
51 National Sales Manager:
American Skandia
Marketing, Incorporated

Jeffrey M. Ulness Vice President, Vice President,
38 Product Management Product Management:
American Skandia Life
Assurance Corporation

Mr. Ulness joined us in 1994. He previously held the positions of Counsel at
North American Security Life Insurance Company from March, 1991 to July, 1994
and Associate at LeBoeuf, Lamb, Leiby, Green and MacRae from January, 1990 to
March 1991.

- --------
* Trustees of American Skandia Trust, one of the underlying mutual funds in
which the Sub-accounts offered pursuant to this Prospectus invest.
</TABLE>

Item 26. Persons Controlled by or Under Common Control with the Depositor or
Registrant: The Depositor does not directly or indirectly control any person.
The following persons are under common control with the Depositor by American
Skandia, Inc. formerly known as American Skandia Investment Holding Corporation:

(1) American Skandia Information Services and Technology
Corporation ("ASIST"): The organization is a general business
corporation organized in the State of Delaware. Its primary
purpose is to provide various types of business services to
American Skandia, Inc. formerly known as American Skandia
Investment Holding Corporation and all of its subsidiaries
including computer systems acquisition, development and
maintenance, human resources acquisition, development and
management, accounting and financial reporting services and
general office services.

(2) American Skandia Marketing, Incorporated ("ASM, Inc."): The
organization is a general business corporation organized in
the State of Delaware. It was formed primarily for the purpose
of acting as a broker-dealer in securities. It acts as the
principal "underwriter" of annuity contracts deemed to be
securities, as required by the Securities and Exchange
Commission, which insurance policies are to be issued by
American Skandia Life Assurance Corporation. It provides
securities law supervisory services in relation to the
marketing of those products of American Skandia Life Assurance
Corporation registered as securities. It also may provide such
services in relation to marketing of certain public mutual
funds. It also has the power to carry on a general financial,
securities, distribution, advisory, or investment advisory
business; to act as a general agent or broker for insurance
companies and to render advisory, managerial, research and
consulting services for maintaining and improving managerial
efficiency and operation.

(3) American Skandia Investment Services, Incorporated ("ASISI"):
The organization is a general business corporation organized
in the state of Connecticut. The organization is authorized to
provide investment service and investment management advice in
connection with the purchasing, selling, holding or exchanging
of securities or other assets to insurance companies,
insurance-related companies, mutual funds or business trusts.
It's primary role is expected to be as investment manager for
certain mutual funds [to be made available primarily through
the variable insurance products of American Skandia Life
Assurance Corporation.]

(4) Skandia Vida: This subsidiary of American Skandia Life
Assurance Corporation was organized in March, 1995, and began
operations in July, 1995. It offers investment oriented life
insurance designed for long-term savings products through
independent banks and brokers in Mexico.

Item 27. Number of Contract Owners: Not applicable - new registrant.

Item 28. Indemnification: Under Section 33-320a of the Connecticut General
Statutes, the Depositor must indemnify a director or officer against judgments,
fines, penalties, amounts paid in settlement and reasonable expenses including
attorneys' fees, for actions brought or threatened to be brought against him in
his capacity as a director or officer when certain disinterested parties
determine that he acted in good faith and in a manner he reasonably believed to
be in the best interests of the Depositor. In any criminal action or proceeding,
it also must be determined that the director or officer had no reason to believe
his conduct was unlawful. The director or officer must also be indemnified when
he is successful on the merits in the defense of a proceeding or in
circumstances where a court determines that he is fairly and reasonable entitled
to be indemnified, and the court approves the amount. In shareholder derivative
suits, the director or officer must be finally adjudged not to have breached
this duty to the Depositor or a court must determine that he is fairly and
reasonably entitled to be indemnified and must approve the amount. In a claim
based upon the director's or officer's purchase or sale of the Registrants'
securities, the director or officer may obtain indemnification only if a court
determines that, in view of all the circumstances, he is fairly and reasonably
entitled to be indemnified and then for such amount as the court shall
determine. The By-Laws of American Skandia Life Assurance Corporation ("ASLAC")
also provide directors and officers with rights of indemnification, consistent
with Connecticut Law.

The foregoing statements are subject to the provisions of Section 33-320a.

Directors and officers of ASLAC and ASM, Inc. can also be indemnified pursuant
to indemnity agreements between each director and officer and American Skandia,
Inc. formerly known as American Skandia Investment Holding Corporation, a
corporation organized under the laws of the state of Delaware. The provisions of
the indemnity agreement are governed by Section 45 of the General Corporation
Law of the State of Delaware.

The directors and officers of ASLAC and ASM, Inc. are covered under a directors
and officers liability insurance policy issued by an unaffiliated insurance
company to Skandia Insurance Company Ltd., their ultimate parent. Such policy
will reimburse ASLAC or ASM, Inc., as applicable, for any payments that it shall
make to directors and officers pursuant to law and, subject to certain
exclusions contained in the policy, will pay any other costs, charges and
expenses, settlements and judgments arising from any proceeding involving any
director or officer of ASLAC or ASM, Inc., as applicable, in his or her past or
present capacity as such.

Registrant hereby undertakes as follows: Insofar as indemnification for
liabilities arising under the Securities Act of 1933 (the "Act") may be
permitted to directors, officers and controlling persons of Registrant pursuant
to the foregoing provisions, or otherwise, Registrant has been advised that in
the opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and, therefore, is unenforceable.
In the event that a claim for indemnification against such liabilities (other
than the payment by Registrant of expenses incurred or paid by a director,
officer or controlling person of Registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, unless in the opinion
of Registrant's counsel the matter has been settled by controlling precedent,
Registrant will submit to a court of appropriate jurisdiction the question
whether such indemnification by it is against public policy as expressed in the
Act and will be governed by the final adjudication of such issue.

<PAGE>

Item 29. Principal Underwriters:

(a) At present, ASM, Inc. acts as principal underwriter only for annuities
to be issued by ASLAC.

(b) Directors and officers of ASM, Inc.

<TABLE>
<CAPTION>
<S> <C>
Name and Principal Business Address Position and Offices with Underwriter

Patricia J. Abram Senior Vice President and National
American Skandia Life Assurance Corporation Sales Manager, Variable Life
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Gordon C. Boronow Deputy Chief Executive Officer
American Skandia Life Assurance Corporation and Director
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Kimberly A. Bradshaw Vice President, National Sales
American Skandia Life Assurance Corporation Manager/Qualified Plans
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Robert Brinkman Senior Vice President,
American Skandia Life Assurance Corporation National Sales Manager
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Jan R. Carendi Chairman of the Board
American Skandia Life Assurance Corporation of Directors and
One Corporate Drive, P.O. Box 883 Chief Executive Officer
Shelton, Connecticut 06484-0883

Y.K. Chan Senior Vice President and
American Skandia Life Assurance Corporation Chief Information Officer
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Kathleen A. Chapman Assistant Corporate Secretary
American Skandia Life Assurance Corporation
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Lucinda C. Ciccarello Vice President, Mutual Funds
American Skandia Life Assurance Corporation
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Wade A. Dokken President and Deputy Chief
American Skandia Life Assurance Corporation Executive Officer and
One Corporate Drive, P.O. Box 883 Director
Shelton, Connecticut 06484-0883

Ian Kennedy Senior Vice President,
American Skandia Life Assurance Corporation Customer Service
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

T. Richard Kennedy General Counsel
American Skandia Life Assurance Corporation
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

N. David Kuperstock Vice President, Product Development
American Skandia Life Assurance Corporation and Director
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Thomas M. Mazzaferro Executive Vice President,
American Skandia Life Assurance Corporation Chief Financial Officer
One Corporate Drive, P.O. Box 883 and Director
Shelton, Connecticut 06484-0883

Eileen S. McCann Vice President,
American Skandia Life Assurance Corporation Key Accounts Marketing
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

David R. Monroe Senior Vice President,
American Skandia Life Assurance Corporation Treasurer and
One Corporate Drive, P.O. Box 883 Corporate Controller
Shelton, Connecticut 06484-0883

Michael A. Murray Vice President,
American Skandia Life Assurance Corporation National Sales Manager/
One Corporate Drive, P.O. Box 883 American Skandia Advisor Funds
Shelton, Connecticut 06484-0883

Brian O'Connor Vice President, National Sales
American Skandia Life Assurance Corporation Manager, Internal Wholesaling
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

M. Priscilla Pannell Corporate Secretary
American Skandia Life Assurance Corporation
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Kathleen A. Pritchard Vice President,
American Skandia Life Assurance Corporation National Key Accounts/
One Corporate Drive, P.O. Box 883 Financial Institutions
Shelton, Connecticut 06484-0883

Hayward L. Sawyer Executive Vice President,
American Skandia Life Assurance Corporation National Sales Manager
One Corporate Drive, P.O. Box 883 and Director
Shelton, Connecticut 06484-0883

Anders O. Soderstrom Executive Vice President
American Skandia Life Assurance Corporation
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Leslie S. Sutherland Vice President,
American Skandia Life Assurance Corporation National Key Accounts Manager
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Amanda C. Sutyak Vice President
American Skandia Life Assurance Corporation
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Christian Thwaites Senior Vice President,
American Skandia Life Assurance Corporation National Marketing Director
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Mary Toumpas Vice President and
American Skandia Life Assurance Corporation Compliance Director
One Corporate Drive, P.O. Box 883
Shelton, Connecticut 06484-0883

Bayard F. Tracy Senior Vice President,
American Skandia Life Assurance Corporation National Sales Manager and
One Corporate Drive, P.O. Box 883 Director
Shelton, Connecticut 06484-0883

Deborah G. Ullman Senior Vice President and
American Skandia Life Assurance Corporation Chief Operating Officer,
One Corporate Drive, P.O. Box 883 Finance and Business Operations
Shelton, Connecticut 06484-0883
</TABLE>

Item 30. Location of Accounts and Records: Accounts and records are maintained
by ASLAC at its principal office in Shelton, Connecticut.

Item 31. Management Services: None

Item 32. Undertakings:

(a) Registrant hereby undertakes to file a post-effective amendment to this
Registration Statement as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never more than 16 months
old so long as payments under the annuity contracts may be accepted and
allocated to the Sub-accounts of Separate Account B.

(b) Registrant hereby undertakes to include either (1) as part of any enrollment
form or application to purchase a contract offered by the prospectus, a space
that an applicant or enrollee can check to request a Statement of Additional
Information, or (2) a post card or similar written communication affixed to or
included in the prospectus that the applicant can remove to send for a Statement
of Additional Information.

(c) Registrant hereby undertakes to deliver any Statement of Additional
Information and any financial statements required to be made available under
this form promptly upon written or oral request.

(d) American Skandia Life Assurance Corporation ("Depositor") hereby represents
that the aggregate fees and charges under the annuity contracts are reasonable
in relation to the services rendered, the expenses expected to be incurred, and
the risks assumed by the Depositor.

(e) With respect to the restrictions on withdrawals for Texas Optional
Retirement Programs and Section 403(b) plans, we are relying upon: 1) a
no-action letter dated November 28, 1988 from the staff of the Securities and
Exchange Commission to the American Council of Life Insurance with respect to
annuities issued under Section 403(b) of the code, the requirements of which
have been complied with by us; and 2) Rule 6c-7 under the 1940 Act with respect
to annuities made available through the Texas Optional Retirement Program, the
requirements of which have been complied with by us.

EXHIBITS

As noted in Item 24(b), various exhibits are incorporated by reference or are
not applicable. The exhibits included are as follows:

No. 4 (a) Copy of the Form of Annuity Contract

No. 4 (b) Copy of Required Minimum Distribution Endorsement

No. 5 A copy of the application form used with the Annuity

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant has duly caused this registration statement to be signed on
its behalf, in the Town of Shelton and State of Connecticut, on this 29th day of
December, 1999.

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION VARIABLE ACCOUNT B
(CLASS 7 SUB-ACCOUNTS)
Registrant

By: American Skandia Life Assurance Corporation

By:/s/ Kathleen A. Chapman Attest:/s/ Scott K. Richardson
Kathleen A. Chapman, Assistant Corporate Secretary Scott K. Richardson

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Depositor

By:/s/ Kathleen A. Chapman Attest:/s/ Scott K. Richardson
Kathleen A. Chapman, Assistant Corporate Secretary Scott K. Richardson

As required by the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the date indicated.

<TABLE>
<CAPTION>
<S> <C> <C> <C>
Signature Title Date
(Principal Executive Officer)

Jan R. Carendi* Chief Executive Officer, December 29, 1999
Jan R. Carendi Chairman of the Board and Director

(Principal Financial Officer)

/s/ Thomas M. Mazzaferro Executive Vice President and December 29, 1999
Thomas M. Mazzaferro Chief Financial Officer

(Principal Accounting Officer)

/s/ David R. Monroe Senior Vice President, Treasurer December 29, 1999
David R. Monroe and Controller

(Board of Directors)

Jan. R. Carendi* Gordon C. Boronow* Malcolm M. Campbell*
Jan. R. Carendi Gordon C. Boronow Malcolm M. Campbell

Henrik Danckwardt* Amanda C. Sutyak* Wade A. Dokken*
Henrik Danckwardt Amanda C. Sutyak Wade A. Dokken

Thomas M. Mazzaferro* Gunnar Moberg* Bayard F. Tracy*
Thomas M. Mazzaferro Gunnar Moberg Bayard F. Tracy

Anders Soderstrom* C. Ake Svensson* Lincoln R. Collins*
Anders Soderstrom C. Ake Svensson Lincoln R. Collins

Nancy F. Brunetti*
Nancy F. Brunetti

*By: /s/ Kathleen A. Chapman
Kathleen A. Chapman

<FN>
*Pursuant to Powers of Attorney filed with Initial Registration Statement No. 333-25733

</FN>
</TABLE>

VIA-T (8/99)-01

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
ONE CORPORATE DRIVE, P.O. BOX 883
SHELTON, CONNECTICUT 06484
(A STOCK COMPANY)

We pay the first Annuity Payment to the named Payee on the Annuity Date. The
frequency, period and dollar amount of any subsequent payments are determined in
accordance with the terms and conditions of this Annuity.

This contract (the "Annuity") is issued in consideration of any application, a
copy of which may be attached to and made a part of this Annuity, and payment of
the single Premium. This Annuity is subject to the laws of the jurisdiction
where it is delivered.

PLEASE READ THIS CONTRACT CAREFULLY

This is a legal contract between you and us.

RIGHT TO CANCEL

You may return this Annuity to our Office or to the representative who solicited
its purchase for a refund within twenty-one days after you receive it. The
amount of the refund will equal the then current Contract Value as of the date
we receive the cancellation request in good order plus any tax charge deducted.
You bear the investment risk during this period.

Signed for American Skandia Life Assurance Corporation:

----------------------------------
President

SINGLE PREMIUM VARIABLE IMMEDIATE ANNUITY
NON-PARTICIPATING

ALL INCOME AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE, AND ARE NOT GUARANTEED AS TO
DOLLAR AMOUNT.

<PAGE>

2
VIA-T (8/99)-02
<TABLE>
<CAPTION>

TABLE OF CONTENTS

<S> <C>
DEFINITIONS.......................................................................................................5

PREMIUM...........................................................................................................7

NET PREMIUM.......................................................................................................7

OPERATIONS OF THE SEPARATE ACCOUNT................................................................................7

GENERAL ACCOUNT...................................................................................................7

CHARGES...........................................................................................................8

ANNUITY FACTORS...................................................................................................8

ANNUITY BENEFITS..................................................................................................8

BASIS OF ANNUITY BENEFITS.........................................................................................8

CONTRACT VALUE....................................................................................................9

VALUES ON THE ISSUE DATE.........................................................................................10

VALUES AFTER THE ISSUE DATE PRIOR TO THE INHERITANCE DATE........................................................10

VALUES ON AND AFTER THE INHERITANCE DATE.........................................................................11

ANNUITY PAYMENTS AND BENEFITS PRIOR TO THE ANNUITY DATE..........................................................11

ANNUITY PAYMENTS AND BENEFITS ON AND AFTER THE ANNUITY DATE......................................................11

PROOF OF SURVIVAL................................................................................................12

PAYMENTS AND RECIPIENTS..........................................................................................13

SURRENDER........................................................................................................13

TRANSFERS........................................................................................................14

YOUR RIGHTS......................................................................................................14

OWNERSHIP........................................................................................................14

DESIGNATIONS.....................................................................................................15

GENERAL PROVISIONS...............................................................................................16
</TABLE>

Copies of any Application and any riders and endorsements are attached.

<PAGE>

3
VIA-T (8/99)-03

SCHEDULE

ANNUITY NUMBER: [00000]

TYPE OF BUSINESS: [NON-QUALIFIED]

ANNUITY PERIOD: [LIFE WITH X YEARS CERTAIN PERIOD]

ISSUE DATE: [July 1, 1999]

ANNUITY DATE: [August 15, 1999]

OWNER[S]: [JOHN DOE]

[MARY DOE]

ANNUITANT[S]: [JANE DOE] [ANNUITANT'S SEX: [FEMALE]
ANNUITANT'S DATE OF BIRTH: [JANUARY 3, 1934]
ANNUITANT'S AGE AT ISSUE: [65 YEARS 5 MONTHS]]

[PAUL DOE] [ANNUITANT'S SEX: [MALE]
ANNUITANT'S DATE OF BIRTH: [JANUARY 1, 1934]
ANNUITANT'S AGE AT ISSUE: [65 YEARS 6 MONTHS]]

TRANSFERABILITY: THIS CONTRACT [IS] TRANSFERABLE.

SINGLE PREMIUM: $[100,000] NET PREMIUM : $[98,000]

TAX CHARGE: [X.XX]% ON PREMIUM PAID.

BENCHMARK RATE: [6.00]% PER YEAR COMPUNDED YEARLY.

DISCOUNT RATE: [8.00]%

INSURANCE CHARGE: 1.25% OF ASSETS IN THE SEPARATE ACCOUNT PER YEAR, DEDUCTED
EACH VALUATION DAY.

PARTIAL SURRENDER AVAILABILITY: [YES]

MINIMUM PARTIAL SURRENDER AMOUNT: $1,000

MINIMUM CASH VALUE AFTER PARTIAL SURRENDER: $5,000

INTEREST RATE CREDITED FOR ANY DELAYED ANNUITY PAYMENTS: 3.00% PER YEAR.

MINIMUM ASSUMED INTEREST RATE FOR CONVERSION: 3.00%

<PAGE>

4
VIA-T (8/99)-04

TRANSFER FEE: $10 FOR EACH TRANSFER AFTER THE TWELFTH TRANSFER IN ANY ANNUITY
YEAR.

SEPARATE ACCOUNT: AMERICAN SKANDIA LIFE ASSURANCE CORPORATION VARIABLE
ACCOUNT B - CLASS 3 SUB-ACCOUNTS.

OFFICE: [AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
ONE CORPORATE DRIVE, P.O. BOX 883
SHELTON, CONNECTICUT 06484
TELEPHONE: 1-800-752-6342
WWW.AMERICANSKANDIA.COM ]

<PAGE>

5
VIA-T (8/99)-05

DEFINITIONS

ANNUITANT: Unless otherwise specified, all persons so designated and if Annuity
Payments are payable for life, upon whose lives this Annuity is issued, as shown
in the Schedule.

ANNUITY DATE: The date Annuity Payments are to begin.

ANNUITY FACTORS: Factors we apply to determine the Schedule of Units.

ANNUITY PAYMENT AMOUNT: The dollar amount of each Annuity Payment. The Annuity
Payment Amount can vary each month.

ANNUITY PAYMENTS: The periodic payments due.

ANNUITY YEARS: Continuous 12-month periods commencing on the Issue Date and each
anniversary of the Issue Date.

APPLICATION: A form we may require you to submit when you are seeking this
Annuity.

BENCHMARK RATE: An assumed annual rate of return as shown in the Schedule. It is
one of the components used to determine Annuity Factors.

BENEFICIARY: The person(s) or entity(ies) you designate to receive benefits upon
the death of the last surviving Annuitant, if you elect a Certain Period.

CASH VALUE: Any amount available for surrender or as a lump sum death benefit.

CERTAIN PERIOD: A length of time for which Annuity Payments are due, whether or
not the Annuitant is still alive. The initial Certain Period is shown in the
Schedule.

CONTRACT VALUE: The value of each allocation to a Sub-account, plus any earnings
and any Longevity Credits and/or less any losses, distributions, and charges
thereon. Contract Value is determined separately for each Sub-account, and then
totaled to determine the Contract Value for your entire Annuity.

INHERITANCE DATE: The date we receive, at our Office, due proof satisfactory to
us of the Annuitant's death and all other requirements that enable us to make
payments for the benefit of a Beneficiary, if applicable. If there are joint
Annuitants, the Inheritance Date refers to the death of the last surviving
Annuitant.

IN WRITING: In a written form that is satisfactory to us and filed at our
Office. In lieu of such a written communication, we, at our sole discretion, may
agree in advance to communication regarding a specific matter by telephone or by
some other form of electronic transmission in a manner we accept.

ISSUE DATE: The effective date of your Annuity.

LONGEVITY CREDITS: Amounts we credit to the Contract Value on each Monthly
Processing Date while the Annuitant is alive, if Annuity Payment are to be paid
for life.

<PAGE>

6
VIA-T (8/99)-06

MONTHLY PROCESSING DATE: The date each month Annuity Payments are payable. It is
the same day of the month as the Annuity Date.

NET INVESTMENT PERFORMANCE: The performance of the Units in each Sub-account.

NET PREMIUM: The single Premium less any applicable deduction for taxes.

OFFICE: The office shown in the Schedule.

OWNER: Any person(s) or entity(ies) who may exercise the ownership rights
provided pursuant to this Annuity.

PAYEE: Any person(s) or entity(ies) designated to receive Annuity Payments.
Unless otherwise instructed, we assume the Annuitant is the Payee while the
Annuitant is alive. After the Inheritance Date, unless you instruct us
otherwise, the Beneficiary is the Payee, if applicable.

PREMIUM: The cash consideration you give to us for the rights, privileges, and
benefits provided under this Annuity according to its
terms.

SCHEDULE OF UNITS: A schedule which specifies, for each Sub-account, the number
of Units required to fund the Annuity's benefits as of each Monthly Processing
Date. On the Issue Date, the Schedule of Units is based on the portion of
Premium allocated to the Sub-accounts, the Benchmark Rate and Annuity Factors.
After the Issue Date, the Schedule of Units is adjusted should you: (a) transfer
among the Sub-accounts; or (b) take a partial surrender, if applicable.

SEPARATE ACCOUNT: The separate account shown in the Schedule.

SUB-ACCOUNT: A division of the Separate Account. The Sub-accounts are also
referred to as "investment options."

UNIT: The measure used to determine benefits for a given Sub-account.

UNIT VALUE: A measure used to determine the performance of an underlying
Sub-account. It is the value of each Unit as of each Valuation Day. It reflects
the Net Investment Performance.

VALUATION DAY: Every day the New York Stock Exchange is open for trading or any
other day that the Securities and Exchange Commission requires mutual funds or
unit investment trusts to be valued.

VALUATION PERIOD: The period of time between the close of business of the New
York Stock Exchange on successive Valuation Days.

"WE", "US", "OUR" OR "THE COMPANY": means American Skandia Life Assurance
Corporation.

"YOU" OR "YOUR": means the Owner.

<PAGE>

7
VIA-T (8/99)-07

PREMIUM

You purchase this Annuity with a single Premium. We do not accept additional
Premiums.

NET PREMIUM

The Net Premium is allocated to the applicable Sub-account(s) of the Separate
Account as selected by you on the Issue Date. We reserve the right to limit the
number of allocations that you can have at any time.

OPERATIONS OF THE SEPARATE ACCOUNT

Assets supporting the various benefits of this Annuity are held in the Separate
Account. The Separate Account consists of multiple Sub-accounts. This Separate
Account was established by us pursuant to the laws of the State of Connecticut.

We are the legal owner of the assets in the Separate Account. Income, gains and
losses, whether or not realized, from assets allocated to the Separate Account
are credited to or charged against such Separate Account in accordance with the
terms of the annuities supported by such assets without regard to our other
income, gains or losses or to the income, gain or losses in any other of our
separate accounts. We will maintain assets in the Separate Account with a total
market value at least equal to the reserve and other liabilities we must
maintain in relation to the annuity obligations supported by such assets. These
assets may only be charged with liabilities which arise from such annuities. The
investments made by the Separate Account are subject to the requirements of
applicable state laws.

The amount of our obligations in relation to allocations to the Sub-accounts are
based on the investment performance of such Sub-accounts. However, the
obligations themselves are our general corporate obligations.

The Separate Account is registered with the Securities and Exchange Commission
("SEC") under the Investment Company Act of 1940 (the "1940 Act") as a unit
investment trust, which is a type of investment company. Although this does
involve supervision by the SEC of the investment policies, management or
practices of the Separate Account such supervision should not affect the
operation of the Separate Account.

Sub-accounts are permitted to invest in underlying mutual funds or portfolios
that we consider suitable. Values and benefits based on allocations to the
Sub-accounts vary with the investment performance of the underlying mutual funds
or fund portfolios, as applicable. We do not guarantee the investment results of
any Sub-accounts. You bear the entire investment risk

GENERAL ACCOUNT

We maintain assets in our general account to support obligations we may have in
relation to this Annuity for which assets are not maintained in the Separate
Account.

<PAGE>

8
VIA-T (8/99)-08

CHARGES

INSURANCE CHARGE: We assess a charge each Valuation Day against each
Sub-account. The charge is a percentage of the average daily total value of each
Sub-account, as indicated in the Schedule.

TAX CHARGES: Any tax charge is deducted from your Premium. The percentage rate
applicable is shown in the Schedule. We also reserve the right to assess a
charge against the Sub-accounts equal to any taxes which may be imposed upon the
Sub-accounts.

TRANSFER FEE: We charge a fee for transfers among Sub-accounts as shown in the
Schedule.

ANNUITY FACTORS

Annuity Factors are used in calculating the Schedule of Units. The Annuity
Factors depend on the Benchmark Rate, the annuity period shown in the Schedule
and, if Annuity Payments are due for life, the Annuitant's attained age and,
where permitted by law, gender. The Annuity Factors reflect assumptions
regarding the costs we expect to bear in guaranteeing payments for the annuity
period shown in the Schedule. We may use different Annuity Factors for different
classes of Annuities.

ANNUITY BENEFITS

This Annuity provides that Annuity Payments are payable for the annuity period
shown in the Schedule. This Annuity terminates when the annuity period shown in
the Schedule ends or upon the Inheritance Date if a lump sum death benefit is
payable.

The Premium and all distributions under this Annuity are paid in U.S. currency.

BASIS OF ANNUITY BENEFITS

The Net Premium is allocated to purchase Units in the investment options. We
calculate a Schedule of Units, which for each investment option, specifies the
number of Units required to fund benefits on each Monthly Processing Date. The
Units in the Schedule of Units decrease each month at the Benchmark Rate.
Therefore, if the Net Investment Performance were equal to the Benchmark Rate,
the product of each month's Units multiplied by Unit Value would remain
constant.

We deliver to you a Schedule of Units upon: (a) allocation of the Net Premium;
(b) any transfer among investment options; and (c) any partial surrender. The
Schedule of Units reflects the number of Units for the next Monthly Processing
Date. On each Monthly Processing Date, the number of scheduled Units from any
investment option can be determined using the following formula:

The number of Units then scheduled equals the number of Units on the immediately
preceding Monthly Processing Date divided by (1 + BENCHMARK RATE.)1/12

If Annuity Payments are due for life, we add Longevity Credits, while an
Annuitant is alive, to your Contract Value on each Monthly Processing Date.
These are amounts we fund from our general account. Longevity Credits reflect
expected mortality of annuitants. The amount of Longevity Credits added on each
Monthly Processing Date depends on the difference between the then current
Contract Value and the then current Cash Value, if any, the attained age, and
where permitted, gender of the Annuitants.

The commitment to calculate benefits in accordance with the Schedule of Units
combined with the allocation of Longevity Credits guarantees that there will be
adequate Units to fund the benefits for the annuity period shown in the
Schedule.

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CONTRACT VALUE

We determine your Contract Value separately for each Sub-account. To determine
the Contract Value in each Sub-account we multiply the Unit Value as of the
Valuation Period for which the calculation is being made by the number of Units
attributable to your Annuity in that Sub-account as of that Valuation Period.

UNITS: The number of Units attributable to the Contract Value of this Annuity in
a Sub-account is the number of Units you purchased plus the number added as
Longevity Credits less the number transferred, redeemed to fund Annuity Payments
or surrendered. We determine the number of Units involved in any transaction
specified in dollars by dividing the dollar value of the transaction by the Unit
Price of the affected Sub-account as of the Valuation Period applicable to such
transaction.

UNIT PRICE: For each Sub-account the initial Unit Price was $10.00. The Unit
Price for each subsequent period is the net investment factor for that period,
multiplied by the Unit Price for the immediately preceding Valuation Period. The
Unit Price for a Valuation Period applies to each day in the period.

NET INVESTMENT FACTOR: A net investment factor is determined for each
Sub-account and each Valuation Period. The net investment factor is an index
that measures the investment performance of and charges assessed against a
Sub-account from one Valuation Period to the next. The net investment factor for
a Valuation Period is (a) divided by (b), less (c); where:

(a) is the net result of :

(1) the net asset value per share of the underlying mutual
fund shares held in the Sub-account at the end of the
current Valuation Period plus the per share amount of
any dividend or capital gain distribution declared and
unpaid (accrued) by the underlying mutual fund; plus or
minus

(2) any per share charge or credit during the Valuation
Period as a provision for taxes attributable to the
operation or maintenance of the Sub-account.

(b) is the net result of :

(1) the net asset value per share of the underlying mutual
fund shares held in the Sub-account at the end of the
preceding Valuation Period plus the per share amount of
any dividend or capital gain distribution declared and
unpaid (accrued) by the underlying mutual fund; plus or
minus

(2) any per share charge or credit during the preceding
Valuation Period as a provision for taxes attributable
to the operation or maintenance of the Sub-account.

We value the assets in the Sub-accounts at their fair market value in accordance
with accepted accounting practices and applicable laws and regulations. The net
investment factor may be greater than, equal to, or less than one.

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VALUES ON THE ISSUE DATE

On the Issue Date we determine the initial value for each of the Annuity's
benefits and various measures, as follows:

1. Units: We allocate your Net Premium to the investment options to
purchase Units at the Unit Value as of the close of business on the
Issue Date for each applicable Sub-account.

2. Contract Value: The initial Contract Value equals the Net Premium.

3. Annuity Period: The annuity period is shown in the Schedule.

4. Certain Period: Any Certain Period elected is shown in the Schedule as
part of the annuity period.

5. Schedule of Units: We calculate an initial Schedule of Units based on
the number of Units purchased for each Sub-account, the Benchmark Rate
and the applicable Annuity Factor.

6. Cash Value: Whether there is a Cash Value and how it is calculated
depends on the annuity period elected, as follows:

(a) Payments for life and no Certain Period: There is no Cash
Value.

(b) Payments for life and a Certain Period or for a Certain Period
Only: There is a Cash Value during the Certain Period. It is
the present value of the Schedule of Units over the remaining
Certain Period multiplied by the then current Unit Value. The
discount rate used in determining the present value is as
shown in the Schedule.

7. Annuity Date: The date of the first Annuity Payment. You may not change
the Annuity Date.

VALUES AFTER THE ISSUE DATE PRIOR TO THE INHERITANCE DATE

After the Issue Date, the value of certain benefits and measures may change,
either every Valuation Period or on each Monthly Processing Date.

VALUES THAT MAY CHANGE EACH VALUATION PERIOD: Each Valuation Period the values
of the following measures may change.

1. Units: The number of Units in each investment option may change if you
transfer between investment options.

2. Unit Value: The Unit Value may increase or decrease each Valuation
Period to reflect Net Investment Performance.

3. Contract Value: The Contract Value may increase or decrease each
Valuation Period as a result of the changes in Unit Value.

4. Schedule of Units: If you transfer between investment options, we
recalculate the Schedule of Units for the affected investment options.

5. Cash Value: Any Cash Value may increase or decrease each Valuation
Period as a result of the changes in Unit Value.

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VALUES THAT MAY CHANGE ON A MONTHLY PROCESSING DATE: On each Monthly Processing
Date the values of the following measures may change.

1. Contract Value: On each Monthly Processing Date, the Contract Value is
reduced by the Annuity Payment Amount and any pro-rata reduction due to
a partial surrender based on the portion of Cash Value surrendered. The
Contract Value is increased by the amount of any Longevity Credits due.

2. Certain Period: The Certain Period, if applicable, decreases by the
smaller of one month and the prior remaining Certain Period.

3. Annuity Payment Amount: The Annuity Payment Amount is equal to the sum
over all Sub-accounts of the number of Units scheduled to be paid under
the Schedule of Units multiplied by the corresponding Unit Values.

VALUES ON AND AFTER THE INHERITANCE DATE

If this Annuity is issued without a Certain Period, then this Annuity terminates
as of the Inheritance Date.

If this Annuity is issued with a Certain Period, Annuity Payments are due over
any remaining Certain Period. Once the Certain Period ends, this Annuity
terminates.

ANNUITY PAYMENTS AND BENEFITS PRIOR TO THE ANNUITY DATE

No Annuity Payments are due prior to the Annuity Date.

IF THE OWNER DIES PRIOR TO THE ANNUITY DATE: If the Owner dies prior to the
Annuity Date, the Annuity will end and the Cash Value is payable as settlement
to the Beneficiary(ies) upon our receipt of all our requirements to make
settlement. If the Owner's spouse is also an Owner or is the designated and sole
Beneficiary, then he/she may elect to continue the Annuity or he/she may elect
to terminate the Annuity and receive the Cash Value.

IF THE ANNUITANT DIES PRIOR TO THE ANNUITY DATE: If an Annuitant dies prior to
the Annuity Date, the Annuity will end and the Cash Value is payable as
settlement to the Beneficiary(ies) upon our receipt of all our requirements to
make settlement. This provision will apply upon the death of any Annuitant
unless this Annuity qualifies for one of the exceptions under Section 72 (s)(5)
of the Internal Revenue Code, as amended.

In order to make settlement upon the death of an Owner or Annuitant, as
described above, we must receive all of the following: (a) due proof
satisfactory to us In Writing of the death; (b) the Annuity; and (c) all
representations, In Writing, that we require or which are mandated by applicable
law or regulation in relation to making settlement payment, including any
required representations in relation to tax withholding.

The Cash Value is payable within five years of the date of the Owner's or
Annuitant's death or as an annuity over the life or life expectancy of the
Beneficiary, if such annuity payments begin within one year of the Owner's or
Annuitant's death.

ANNUITY PAYMENTS AND BENEFITS ON AND AFTER THE ANNUITY DATE

An Annuity Payment is payable on the Annuity Date and each subsequent Monthly
Processing Date while Annuity Payments are due. The amount of any Annuity
Payment is determined as of the date such payment is due. We redeem Units
pro-rata from the investment options to make Annuity Payments in proportion to
the Units in the Schedule of Units as of the date an Annuity Payment is due.
Annuity Payments are due for the annuity period as shown in the Schedule.

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CONVERSION TO FIXED ANNUITY PAYMENTS: After the second Annuity Year and before
the Inheritance Date, you can lock in level Annuity Payment Amounts by
converting to fixed Annuity Payments on a Monthly Processing Date. However, the
level Annuity Payment Amounts could be more or less than your Annuity Payment
Amount prior to this conversion. The Certain Period, if any, is not changed by
the conversion. The fixed Annuity Payment Amount is calculated based on your
then Contract Value, the Certain Period, if any, and if the annuity period is
for life, the attained age, and where permitted, gender of the Annuitant. It
includes interest of not less than the minimum assumed interest rate for
conversion shown in the Schedule. There is no Cash Value after conversion.

REQUIREMENTS FOR ANNUITY PAYMENTS PAYABLE TO A PAYEE: Annuity Payments before
the Inheritance Date are payable to the Payee each month on the Monthly
Processing Date.

REQUIREMENTS FOR ANNUITY PAYMENTS PAYABLE TO A BENEFICIARY: No amounts are
payable to a Beneficiary: (a) if no Certain Period was elected; or (b) the
Certain Period has expired as of the Inheritance Date. If the last surviving
Annuitant dies and there is a Certain Period remaining as of the Inheritance
Date, the Beneficiary is eligible to receive the Annuity Payments due for the
rest of the Certain Period.

In order to make Annuity Payments payable to a Beneficiary, we must receive at
our Office: (a) election of Annuity Payments prior to the Inheritance Date or,
if no election was made, election of Annuity Payments by a Beneficiary; (b) due
proof satisfactory to us In Writing of the death of all Annuitants; (c) the
Annuity; and (d) all representations, In Writing, that we require or which are
mandated by applicable law or regulation in relation to making payments for the
Beneficiary, including any required in relation to tax withholding.

LUMP SUM IN LIEU OF ANNUITY PAYMENTS TO THE BENEFICIARY: If there is a Certain
Period remaining as of the Inheritance Date, the Annuity Payments payable to a
Beneficiary may be commuted by the Beneficiary to a lump sum payment if before
the Inheritance Date you did not elect, In Writing, to prohibit commutation. All
requirements that would otherwise apply for Annuity Payments payable for the
benefit of the Beneficiary will apply before we pay a lump sum as an
alternative.

The lump sum is the Cash Value as of the Inheritance Date.

PROOF OF SURVIVAL

The payment of any Annuity Payment while the Annuitant is alive is subject to
evidence satisfactory to us that the Annuitant is alive. The payment of any
Annuity Payment for a Beneficiary is subject to evidence satisfactory to us that
the Beneficiary is alive.

Starting with the Annuity Payment due immediately after the date we require
submission of such evidence, we may withhold Annuity Payments until we receive
such evidence or until we receive In Writing due proof satisfactory to us of the
Annuitant's or Beneficiary's death, as applicable. Such withheld Annuity
Payments will be maintained in our general account. We credit the interest rate
shown in the Schedule on any withheld Annuity Payment unless otherwise required
by law. Should we subsequently receive the applicable requirements, we pay any
withheld Annuity Payments plus any interest credited in a lump sum for the
benefit of the applicable Payee.

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PAYMENTS AND RECIPIENTS

The recipient of any payment must provide us with either an account at a
financial institution to which we may forward such payments or an address to
which a check may be sent. Subject to our rules, we may, as a convenience, send
a payment for an Annuitant, Owner or Beneficiary to an account for the benefit
of an alternate person or entity. We must receive the request to send payments
to such alternate person or entity In Writing from the then current Owner.

Unless you instruct us otherwise, we pay Annuity Payments to the Annuitant first
designated on the Application. We pay any Cash Value upon surrender to the
Owner(s) unless you instruct us otherwise.

SPLIT ANNUITY PAYMENTS: Before the Inheritance Date, we will split Annuity
Payments among all Payees if so requested In Writing. Such splits of Annuity
Payments can be terminated by the Owner by informing us In Writing. We reserve
the right to limit the number of Payees.

Any amounts due on or after the Inheritance Date will be split among accounts
for any named Beneficiaries in accordance with the Beneficiary designation. We
will pay in a lump sum and our liability under the Annuity will terminate if no
other election is received by us at our Office before the Inheritance Date.
Within 90 days after we receive all other requirements for a claim and in our
sole discretion, we will make a determination that no agreement can be reached
as to payment election.

RECOVERY OF EXCESS ANNUITY PAYMENTS: We may recover an amount equal to any
Annuity Payments made after the death of the last surviving Annuitant when there
is no Certain Period remaining as of the date of death. We may seek payment from
the Owner or look to any other assets of such Owner, as permitted by law, to
recover such amounts if not recoverable from the Payee.

SURRENDER

FULL SURRENDER: You may surrender your Annuity for an amount equal to its Cash
Value, if any, at any time after the Right to Cancel period, as long as the
Annuitant is alive. The Cash Value is determined as of the Valuation Day we
receive our requirements for a full surrender. We require evidence satisfactory
to us that the Annuitant is alive.

In order to process a full surrender, we must receive at our Office all of the
following: (a) your request In Writing; (b) the Annuity; (c) proof the Annuitant
is alive; (d) any necessary representations In Writing regarding tax
withholding; and (e) any other representations we require.

PARTIAL SURRENDER: If partial surrenders are available as shown in the Schedule,
then you may surrender part of your Annuity on a Monthly Processing Date for an
amount not less than the minimum partial surrender amount, shown in the
Schedule. The Cash Value that must remain in the Annuity as of the date of this
transaction is as shown in the Schedule. You may do this at any time after the
Right to Cancel period, as long as the Annuitant is alive. The Cash Value is
determined as of the Valuation Day we receive our requirements for a partial
surrender. We require evidence satisfactory to us that the Annuitant is alive.
Payment of a partial surrender will reduce all Annuity benefits and measures,
other than the Certain Period, on a pro-rata basis.

We must receive at our Office: (a) your request In Writing; (b) proof the
Annuitant is alive; (c) any necessary representations In Writing regarding tax
withholding; and (d) any other representations we require.

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TRANSFERS

Persons or entities with ownership rights may transfer Contract Value among
Sub-accounts, subject to our allocation rules. The number of Units and the
Schedule of Units may change. The number of Units redeemed and purchased will be
calculated based on the then current Unit Value for the Sub-account(s) selected.
The number of Units in any Sub-account not involved in a transfer will not be
affected by such transfer.

We reserve the right to require that transfer requests be In Writing. The
transfer is effective as of the date our transfer requirements are satisfied.
All transfers on the same day are treated as a single transfer.

We may accept your authorization of a third party to make transfers on your
behalf. We may suspend or cancel this acceptance at any time. We give you prior
notification of any such suspension or cancellation. We may restrict the
investment options that will be available to you during any period in which you
authorize such third party to act on your behalf. We give the third party you
authorize prior notification of any such restrictions. However, we will not
enforce such a restriction if we are provided evidence satisfactory to us that:
(a) such third party has been appointed by a court of competent jurisdiction to
act on your behalf; or (b) such third party has been appointed by you to act on
your behalf for all your financial affairs.

We allow at least 12 transfers each Annuity Year. We reserve the right to limit
the number of transfers in any Annuity Year or to refuse any transfer request if
we believe that: (a) excessive trading may have a detrimental effect on Unit
Values or the share prices of the underlying mutual funds; or (b) we are
informed by one or more of the underlying mutual funds that the purchase or
redemption of shares is to be restricted because of excessive trading or a
specific transfer or group of transfers is deemed to have a detrimental effect
on share prices of affected underlying mutual funds.

YOUR RIGHTS

You may exercise the rights, options and privileges granted in this Annuity or
permitted by us once this Annuity is issued, which include, but are not limited
to, the following. You may change revocable designations. You may transfer or
assign this Annuity. Voting rights may be exercised in relation to the
applicable Sub-accounts in which you have chosen to invest. Your rights are
subject to the rights of any assignee recorded by us and of any irrevocably
designated Beneficiary.

OWNERSHIP

OWNER: We assume the Annuitant is the Owner, unless we are otherwise notified In
Writing before we issue the Annuity. If there are joint Annuitants, we assume
each Annuitant is an Owner unless otherwise notified In Writing. You may name
more than one Owner. If you do, all rights reserved to Owners are then held
jointly. We require the consent In Writing of all Owners for any transaction for
which we require the written consent of Owners. If an Owner who is a natural
person dies, all rights vest equally in the surviving Owners. If there are no
surviving Owners, all rights vest equally in the contingent Owners.

CONTINGENT OWNER: You may name a contingent Owner. You may name more than one
contingent Owner. If you name more than one contingent Owner, ownership rights
pass as follows, unless you have requested otherwise In Writing: first
contingent Owners, then second contingent Owners. If all Owners of a given class
are not living, ownership rights pass to those designated contingent Owners of
the next class then living, if any. Multiple Owners of a given class are deemed
to be Owners.

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Any revocable contingent Owner may be changed by you. The change request must be
In Writing. The change takes effect on the date you sign the request, but does
not apply to any proceeds we pay or any transactions we process before we
receive your request.

All ownership rights pass to the Beneficiary as of the Inheritance Date unless
you instruct us prior to that time that ownership should remain with any then
surviving Owner. If ownership rights vest in a Beneficiary and if there is no
prior irrevocable contingent Beneficiary designation, such Beneficiary may name
a person or entity to receive any remaining Annuity Payments yet to be paid
subsequent to such Beneficiary's death. Similar rights and rules apply if any
person on whose behalf Annuity Payments are payable after the Beneficiary's
death dies while there are remaining Annuity Payments due.

If ownership rights do not pass as discussed above to another Owner, a
contingent Owner, a Beneficiary, contingent Beneficiary or person named by a
Beneficiary to take over ownership rights in case of the Beneficiary's death,
then ownership rights pass as provided by law upon the occurrence of: (a) death,
if the last person holding ownership rights is a natural person; (b) the
dissolution of any entity with ownership rights, if such entity is a corporation
or partnership; or (c) if ownership rights are held by a trust, custodial
account or person acting as a court-appointed legal representative of another,
the resignation or death of such a trustee, custodian or legal representative,
or the determination by a court of competent jurisdiction that such a trustee,
custodian or legal representative no longer may fill such role.

DESIGNATIONS

Any designations you make and any changes to such designations are subject to
our rules and to applicable regulatory or statutory requirements. Where required
by law, we require the consent In Writing of the spouse of any person with a
vested interest in this Annuity before processing a transaction requiring such
person's written consent.

ANNUITANT: Unless you indicate otherwise, the Annuitant is the Payee. The
Annuitant designation cannot be changed once an Annuity is issued.

BENEFICIARY AND CONTINGENT BENEFICIARY: If you elected a Certain Period, you may
name more than one primary and more than one contingent Beneficiary. If you do,
the proceeds will be payable in equal shares for the survivors in the
appropriate beneficiary class, unless you have requested otherwise In Writing
and we have accepted such designation. Should you wish, you may provide
instructions that cannot be changed by the Beneficiary as to whether any
payments for a Beneficiary must be payable as Annuity Payments or as a lump sum.
We must receive such instructions In Writing before the Inheritance Date.

Unless you notify us otherwise, if no Beneficiary is alive as of the Inheritance
Date or in the absence of any Beneficiary designation, amounts then payable will
vest in you or your estate. If Annuity Payments are payable for a Beneficiary
and no contingent Beneficiary has been named, then such Annuity Payments vest in
the Beneficiary's estate.

CHANGING REVOCABLE DESIGNATIONS: Unless you indicate that a prior choice was
irrevocable or your Annuity has been endorsed to limit certain changes, you may
request to change all designations other than any Annuitant designation while
there is a Certain Period.

The request must be In Writing. Such changes will be subject to our acceptance.

COMMON DISASTER: If the Annuitant and any Beneficiary die in a common disaster,
it must be proved to our satisfaction that the Annuitant died first. Unless
information provided indicates otherwise, the Annuity is treated as though the
Beneficiary died first and any proceeds are payable as if the Beneficiary died
before the Annuitant.

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GENERAL PROVISIONS

ENTIRE CONTRACT: This Annuity, including any attached riders or endorsements,
the attached copy of any application form and any supplemental applications and
endorsements are the entire contract. All statements made in any application
form are deemed to be representations and not warranties. No statement is used
to void the Annuity or defend against a claim unless it is contained in any
application or any supplemental application.

Only our President, a Vice President or Secretary may change or waive any
provisions of your Annuity. Any change or waiver must be In Writing. We are not
bound by any promises or representations made by or to any other person.

MISSTATEMENT OF AGE OR SEX: If there has been a misstatement of the age and/or
sex of any Annuitant, we make adjustments to conform to the facts. As to Annuity
Payments: (a) any underpayments by us will be remedied following correction; and
(b) any overpayments by us will be charged against future amounts payable by us
under your Annuity.

TRANSFERS, ASSIGNMENTS OR PLEDGES: Generally, your rights in this Annuity may be
transferred, assigned or pledged for loans at any time. However, these rights
may be limited depending on your use of this Annuity. You must request a
transfer or provide us a copy of the assignment In Writing. A transfer or
assignment is subject to our acceptance. Prior to receipt of this notice, we
will not be deemed to know of or be obligated under any assignment prior to our
receipt and acceptance thereof. We assume no responsibility for the validity or
sufficiency of any assignment.

NONPARTICIPATION: This Annuity does not share in our profits or surplus
earnings.

DEFERRAL OF TRANSACTIONS: We may defer payment of proceeds of any distribution
funded by a redemption of Units for a period not to exceed 7 calendar days from
the date the transaction is effected. We may defer any payment of proceeds of
any distribution funded by our general account for a period not to exceed the
lesser of 6 months or the period permitted by law.

All procedures, including payment, based on the valuation of the Sub-accounts
may be postponed during the period: (1) the New York Stock Exchange is closed
(other than customary holidays or weekends) or trading on the New York Stock
Exchange is restricted as determined by the SEC; (2) the SEC permits
postponement and so orders; or (3) the SEC determines that an emergency exists
making valuation or disposal of securities not reasonably practical.

ELECTIONS, DESIGNATIONS, CHANGES AND REQUESTS: All elections, designations,
changes and requests must be In Writing and are effective only after they have
been approved by us, subject to any transactions made by us before receipt of
such notices. We inform you of any changes that materially affect your rights.
We reserve the right to require that this Annuity be returned to our Office for
endorsement of any change.

CLAIMS OF CREDITORS: To the extent permitted by law, neither this Annuity nor
any payment hereunder is subject to the claims of any creditors or those of any
Annuitant, Payee or Beneficiary.

FACILITY OF PAYMENT: We reserve the right, in settlement of full liability, to
make payments to a guardian, relative or other person if a Payee is legally
incompetent, as permitted by law.

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REPORTS TO YOU: We will provide you with reports at least once each quarter
while this Annuity is in force. You may request additional reports. We reserve
the right to charge up to $50 for each such additional report.

RESERVED RIGHTS: In addition to rights specifically reserved elsewhere in this
Annuity, we reserve the right to any or all of the following: (a) combine a
Sub-account with other Sub-accounts; (b) combine the Separate Account shown in
the Schedule with other separate accounts; (c) deregister the Separate Account
shown in the Schedule under the Investment Company Act of 1940; (d) operate the
Separate Account shown in the Schedule as a management investment company under
the Investment Company Act of 1940 or in any other form permitted by law; (e)
make changes required by any change in the Securities Act of 1933, the Exchange
Act of 1934 or the Investment Company Act of 1940; (f) make changes that are
necessary to maintain the tax status of your Annuity under the Internal Revenue
Code; and (g) make changes required by any change in other federal or state laws
relating to retirement annuities or annuity contracts.

We may eliminate Sub-accounts, or substitute one or more new underlying mutual
funds or portfolios for the one in which a Sub-account is invested.
Substitutions may be necessary if we believe an underlying mutual fund or
portfolio no longer suits the purpose of the Annuity. This may happen due to a
change in laws or regulations, or a change in the investment objectives or
restrictions of an underlying mutual fund or portfolio, or because the
underlying mutual fund or portfolio is no longer available for investment, or
for some other reason. We would obtain prior approval from the insurance
department of our state of domicile, if so required by law, before making such a
substitution, deletion or addition. We also would obtain prior approval from the
SEC so long as required by law, and any other required approvals before making
such a substitution, deletion or addition.

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AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
ONE CORPORATE DRIVE, P.O. BOX 883
SHELTON, CONNECTICUT 06484
(A STOCK COMPANY)

SINGLE PREMIUM VARIABLE IMMEDIATE ANNUITY
NON-PARTICIPATING

ALL INCOME AND VALUES PROVIDED BY THIS CONTRACT, WHEN BASED ON INVESTMENT
EXPERIENCE OF A SEPARATE ACCOUNT, ARE VARIABLE, AND ARE NOT GUARANTEED AS TO
DOLLAR AMOUNT.

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
ONE CORPORATE DRIVE, P.O. BOX 883
SHELTON, CONNECTICUT 06484-0883

ENDORSEMENT - REQUIRED MINIMUM DISTRIBUTIONS

This Endorsement is made a part of the Annuity to which it is attached. It is
effective on the date such Annuity is effective.

The Annuity to which this Endorsement is attached is hereby amended, at your
request, so that it may qualify as an Individual Retirement Annuity ("IRA")
under Section 408 of the Internal Revenue Code, as amended (the "Code"), a tax
sheltered annuity under Section 403(b) of the Code, a qualified retirement plan
under Section 401(a) of the Code, or any other type of retirement plan that is
subject to Required Distributions under Section 401(a)(9) of the Code ("Required
Minimum Distribution Rules"). The purpose of this Endorsement is to ensure that
payments under the Annuity will satisfy the Required Minimum Distribution rules.
If the terms of the Annuity and those of this Endorsement conflict, the
provisions of the Endorsement shall control. We may amend your Annuity or this
Endorsement to comply with the tax requirements associated with the Required
Minimum Distribution rules. Your consent to any such changes will be sought only
if required by the state in which your Annuity was delivered. Should you not
consent to such changes, your payments may not satisfy the Required Minimum
Distribution Rules.

The provision of the Annuity entitled "Annuity Payments and Benefits on and
after the Annuity Date" is amended by the addition of the following section:

PAYMENTS NEEDED TO MEET REQUIRED MINIMUM DISTRIBUTION RULES: If required by law
or regulation, once each calendar year, we will determine whether an additional
amount is payable. We do this so that the Annuity may satisfy the Required
Minimum Distribution Rules pursuant to Section 401(a)(9) of the Code, and the
regulations pursuant thereto. We will make any elections or assumptions
necessary under the Required Minimum Distribution Rules, as we deem appropriate.
If we determine that an additional amount is payable, the additional payment
amount will be calculated based on the Contract Value. Units of the Contract
Value will be redeemed to fund the additional payment amount. The Cash Value and
the Schedule of Units will decrease in proportion to the number of Units
redeemed.

You may be able to satisfy the Required Minimum Distribution Rules by receiving
a distribution from one account or annuity that is equal to the amount required
to satisfy the Required Minimum Distribution Rules for two or more accounts or
annuities including this Annuity. However, we calculate Required Minimum
Distribution amounts based solely on the value of this Annuity. The Required
Minimum Distribution amounts applicable to your particular situation may depend
on other annuities, savings or investments of which we are unaware, so that the
required amount may be greater than the Required Minimum Distribution amount we
calculate based on the value of your Annuity. If you instruct us in writing that
you will be satisfying the Required Minimum Distribution for this Annuity by
receiving a distribution from another available source we will not make the
additional payment amount described in this Endorsement.

<PAGE>

The sections of the Annuity entitled "Requirements for Annuity Payments Payable
to a Beneficiary" and "Lump Sum in Lieu of Annuity Payments to the Beneficiary"
are hereby deleted and replaced by the following:

REQUIRED END OF THE INHERITANCE PERIOD: As of the Inheritance Date, the
Inheritance Period may not extend beyond the "Required End Date," which is the
last day of the initial Inheritance Period.

AMOUNTS PAYABLE TO A BENEFICIARY: No amounts are payable as Annuity Payments to
a Beneficiary if the last surviving Annuitant dies on or after the Required End
Date. The Beneficiary may only be paid the Cash Value as of the Inheritance Date
in a lump sum.

If the last surviving Annuitant dies before the Required End Date and there is a
non-zero Inheritance Period as of every Monthly Processing Date between the date
of death and the Inheritance Date, the Beneficiary is eligible to receive
Annuity Payments for the remainder of the Inheritance Period or to the Required
End Date, if sooner. The Inheritance Period, if any, as of the Inheritance Date
will be fixed and subsequently reduces by one each month.

In order to make Annuity Payments payable to a Beneficiary, we must receive at
our Office: (a) your election of Annuity Payments prior to the Inheritance Date
or, if no election was made, election of Annuity Payments by a Beneficiary; (b)
due proof satisfactory to us In Writing of the death of all Annuitants; (c) the
Annuity; and (d) all representations, In Writing, that we require or which are
mandated by applicable law or regulation in relation to making payments to the
Beneficiary, including any required in relation to tax withholding.

If the Beneficiary is eligible to receive Annuity Payments, the Beneficiary may
elect to receive the Cash Value as of the Inheritance Date as a lump sum in lieu
of those Annuity Payments if before the Inheritance Date you did not elect, In
Writing, to prohibit such lump sum payment. All requirements that would
otherwise apply for Annuity Payments payable for the benefit of a Beneficiary
will apply before we pay a lump sum as an alternative.

The provision of the Annuity entitled "Your Rights" is replaced in its entirety
with the following section:

YOUR RIGHTS: You may exercise the rights, options and privileges granted in this
Annuity or permitted by us once this Annuity is issued. Your interest in the
Annuity is nonforfeitable at all times. The Annuity is maintained for the
exclusive benefit of you and any Beneficiary. You may not transfer or assign, as
collateral or otherwise, the Annuity or any part thereof.

AMERICAN SKANDIA LIFE ASSURANCE CORPORATION

__________________________________
President

END-VIA/RMD (8/99) Page 2 of 2

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logo American For Internal Use Only
Skandia
Where To Invest

American Skandia Life Assurance Corporation
One Corporate Drive
P.O. Box 883
Shelton, CT 06484-0883 Annuity No.

1 4
Guaranteed Annuity Payment Amount: Name:
_Yes _No _N/A FIRST M. LAST

Address:

2 City: State:_ _

_Non-qualified Zip:_ _ _ _ _

_IRA _SEP/IRA _IRA Rollover Sex: _Male _Female

_401 _403(b) _Roth IRA Date of Birth: MM - DD - YYYY

_Other: Social Security/Tax I.D. No: _ _ _ - _ _ _ -_ _ _ _

3
Name: Name:
FIRST M. LAST FIRST M. LAST

Address: Address:

City: State:_ _ City: State:__ _

Zip:_ _ _ _ _ Zip:_ _ _ _ _

Sex: _Male _Female Sex: _Male _Female

Date of Birth: MM - DD - YYYY Date of Birth: MM - DD - YYYY

Social Security/Tax I.D. No: _ _ _ - _ _ _ -_ _ _ _ Social Security/Tax I.D. No: _ _ _ - _ _ _ - _ _ _ _

5
If left blank, Annuitant(s) will be considered payee(s).

Name: Name:
FIRST M. LAST FIRST M. LAST

Address: Address:

City: State:_ _ City: State:_ _

Zip:_ _ _ _ _ Zip:_ _ _ _ _

Sex: _Male _Female Total: 100%

Date of Birth: MM - DD - YYYY

Social Security/Tax I.D. No: _ _ _ - _ _ _ -_ _ _ _ 6

Annuitant
_Driver's License _Birth Certificate _Passport
_Other:

Joint Annuitant
_Driver's License _Birth Certificate _Passport
_Other:

VIA-App(8/99)

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<PAGE>
logo American For Internal Use Only
Skandia
Where To Invest

American Skandia Life Assurance Corporation
One Corporate Drive
P.O. Box 883
Shelton, CT 06484-0883 Annuity No.

7 9
(Unless otherwise indicated, beneficiary becomes owner upon (Indicate your investment allocation below. Please use
death of last surviving annuitant with the submission of all only whole number percentages. They must total 100%.)
necessary paperwork.)

PRIMARY BENEFICIARY(IES) Investment Options

Name: _ _%
FIRST M. LAST

Social Security #:_ _ _ - _ _ _-_ _ _ _ _ _%

Relationship to Annuitant: _ _%

Name: _ _%
FIRST M. LAST

Social Security #:_ _ _ - _ _ _-_ _ _ _ _ _%

Relationship to Annuitant: _ _%

Name: _ _%
FIRST M. LAST _ _%

Social Security #:_ _ _ - _ _ _-_ _ _ _ _ _%

Relationship to Annuitant: _ _%

TOTAL 100% TOTAL 100%

CONTINGENT BENEFICIARY(IES) 10

Name: Choice of the 1st through the 28th of the month. _ _
FIRST M. LAST

Social Security #:_ _ _ - _ _ _ - _ _ _ _ _ _%

Name:
FIRST M. LAST

Social Security #:_ _ _ - _ _ _ - _ _ _ _ _ _% _ If this box is checked, please complete the following
sections. If this box is not checked, please proceed
Name: to Replacement Information section.
FIRST M. LAST

Social Security #:_ _ _ - _ _ _ - _ _ _ _ _ _% 11

TOTAL 100% _ 3 Percent _ 5 Percent _ 6 Percent
_ other

PREMIUM: $ 12

Type of Payment: _ Life Only

_Check _ Direct Rollover _ Life with Certain Period __years

_Wire _ Mutual Fund Transfer _ Certain Period Only __years

_Trustee-to-Trustee Transfer _ CD Transfer

_1035 Exchange

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<PAGE>

logo American For Internal Use Only
Skandia
Where To Invest

American Skandia Life Assurance Corporation
One Corporate Drive
P.O. Box 883
Shelton, CT 06484-0883 Annuity No.

13 17
Is this annuity intended to replace (in whole or in part) BY SIGNING BELOW THE OWNER(S) UNDERSTAND THAT:
an existing life insurance or annuity? _Yes _No 1. The Annuity Payments, and if applicable, Inheritance
Period or Cash Value may increase or decrease
(If yes, please indicate carrier, contract number and depending on the contract's investment results;
approximate premium amount in Special Instructions.)

14 2. The Variable Annuity applied for is suitable for
______________________________________________ my/our financial situation and needs; and

______________________________________________ 3. I/We have received a current prospectus.

______________________________________________ I/We represent to the best of my/our knowledge and
belief the statements made in this application are
true and complete including under penalty of perjury,
the Social Security or Tax ID numbers provided. It is
indicated and agreed that the only statements which
15 are to be constructed as the basis of the contract are
those contained in this application or in any
Federal/State income tax withholding applies only to the amendment to this application.
portion of your payment that is subject to federal/state
income tax. You may elect not to have withholding apply. SIGNATURES:
If you elect no withholding, or if you do not have enough
tax withheld from your payment, you may have to pay an estimated Owner(s)
tax. If you elect withholding and you do not indicate a X_________________________________
percentage, American Skandia Life Assurance Corporation will X_________________________________
withhold at the maximum federal and state levels. If your
withholding and estimated tax payments are insufficient, you Location where signed_____________
may be penalized under the estimated tax rules. Date MM - DD - YYYY

Federal Income Tax (select one) Annuitant (If other than owner)

_No, I/we do not want to have Federal income tax withheld. X_________________________________
OR
_Yes. I/we want Federal income tax withheld at __%. X_________________________________

State Income Tax (select one)

_No, I/we do not want to have State income tax withheld. Location where signed______________
OR Date MM - DD - YYYY
_Yes, I/we want State income tax withheld at __%
for the state of ___________. Signature of Agent

I/we taxpayer hereby certify(ies), under penalty of perjury X_________________________________
that such taxpayer is not subject to backup withholding order
under Section 3406(a)(1)(c) of the Internal Revenue Code. Name:
FIRST M. LAST

16 Name of Firm:
_________________________________________
Firm Address:
_________________________________________

_________________________________________ City: State:_ _ Zip:_ _ _ _ _

Do you have any reason to believe the contract applied
for is to replace existing annuities or life insurance?
_Yes _No
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