FILE NO. 333-30614
FILE NO. 811-3341
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. 1 [X]
Post-Effective Amendment No. [ ]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. 1 [X]
RELIASTAR SELECT VARIABLE ACCOUNT
(Exact Name of Registrant as Specified in its Charter)
RELIASTAR LIFE INSURANCE COMPANY
(Name of Depositor)
20 Washington Avenue South, Minneapolis, Minnesota 55401
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code: (612) 372-5597
Stewart D. Gregg
ReliaStar Life Insurance Company
20 Washington Avenue South
Minneapolis, Minnesota 55401
(Name and Address of Agent of Service)
Approximate date of proposed Public Offering:
As soon as practicable after the Registration Statement becomes effective.
It is proposed that this filing will become effective
(check appropriate space)
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[ ] on (date) pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a) of Rule 485
[ ] on (date) pursuant to paragraph (a) 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.
The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
Title of securities being registered: Variable annuity contracts issued by a
registered separate account.
<PAGE>
RELIASTAR SELECT VARIABLE ACCOUNT
CROSS REFERENCE SHEET PURSUANT TO RULE 495(a)
FORM N-4
ITEM NUMBER PART A HEADING IN PROSPECTUS
----------- ----------------------------
1 Cover Page
2 Definitions
3 Summary of Contract Expenses
4 Performance Information and Condensed Financial
Information
5 ReliaStar Life; The Variable Account; Investments of
the Variable Account
6 Charges Made by ReliaStar Life
7 The Contracts
8 Annuity Provisions
9 The Contracts
10 The Contracts
11 The Contracts
11 Federal Tax Status
13 Legal Proceedings
14 Statement of Additional Information Table of Contents
PART B HEADING IN STATEMENT OF ADDITIONAL INFORMATION
-----------------------------------------------------
15 Cover Page
16 Table of Contents
17 Introduction
18 Administration of the Contracts
19 Distribution of the Contracts
20 Distribution of the Contracts
21 Calculation of Yield and Return
22 Annuity Provisions (In Prospectus)
23 Financial Statements
PART C HEADINGS
---------------
24 Financial Statements and Exhibits
25 Directors and Officers of the Depositor
26 Persons Controlled by or Under Common Control with
the Depositor or Registrant
27 Number of Contract Owners
28 Indemnification
29 Principal Underwriters
30 Location of Accounts and Records
31 Not Applicable
32 Undertakings
<PAGE>
JUNE 5, 2000
[LOGO] RELIASTAR
ADVANTAGE SE VARIABLE ANNUITY
INDIVIDUAL DEFERRED VARIABLE/FIXED ANNUITY CONTRACTS
ISSUED BY
THE RELIASTAR SELECT VARIABLE ACCOUNT OF
RELIASTAR LIFE INSURANCE COMPANY
PROFILE OF OUR INDIVIDUAL FIXED AND VARIABLE ANNUITY CONTRACT
THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT FEATURES OF THE CONTRACT
THAT YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING IT. THE CONTRACT IS MORE
FULLY DESCRIBED IN THE PROSPECTUS WHICH ACCOMPANIES THIS PROFILE. PLEASE READ
THE PROSPECTUS CAREFULLY.
1. THE ANNUITY CONTRACT: The fixed and variable annuity contract we are offering
is a contract between you, the owner, and us, ReliaStar Life Insurance Company
("ReliaStar Life"). It provides a means for selecting one or more investment
funds ("Investment Option" or "Funds") on a tax-deferred basis. The Contract is
intended for retirement savings or other long-term investment purposes and
provides for a death benefit and guaranteed income options.
A credit will be allocated to your account value at the same time that we
allocate your purchase payment. The amount of the credit is equal to 4% of each
purchase payment. This amount will be applied to each purchase payment received
for at least the first two Contract Years. After the second Contract Year, the
amount of the credit, and the determination of whether to pay a credit, will be
in the discretion of ReliaStar Life. Credits are allocated to the same
investment options based on the same percentages used to allocate your purchase
payments. The credit is subject to recovery by us in certain limited
circumstances. The charges and expenses assessed in connection with the Contract
may be higher in certain instances than for contracts without a credit feature.
Through the Variable Account, the Contract offers up to 34 investment
options. The returns on these investment options are not guaranteed and possibly
you can lose money. Currently, there is a $25 charge for each transfer in excess
of 24 transfers per Contract Year.
The Contract also offers a Fixed Account. This Fixed Account has an
interest rate that is set periodically by ReliaStar Life. While your money is in
the Fixed Account, the interest you earn and your principal is guaranteed by
ReliaStar Life.
The Contract has two phases: the accumulation phase and the income or
payout phase. During the accumulation phase, earnings accumulate on a
tax-deferred basis and are not taxed as income until you make a withdrawal. The
amounts accumulated during the accumulation phase will determine the amount of
annuity payments. The income phase occurs when you begin receiving regular
annuity payments from your contract on the annuity commencement date.
2. ANNUITY PAYMENTS (THE INCOME PHASE): If you want to receive regular income
from your annuity, you can choose one of three options: (1) monthly payments for
your life (assuming you are the annuitant); (2) monthly payments for your life,
but with payments continuing to the beneficiary for 10 or 20 years (as you
select) if you die before the end of the selected period; and (3) monthly
payments for your life and for the life of another person (usually your spouse)
selected by you. Once you begin receiving regular annuity payments, you cannot
change your payment plan.
During the income phase, you have the same investment options you had
during the accumulation phase. You can choose to have annuity payments come from
the Fixed Account, the Variable Account or both. If you choose to have any part
of your annuity payments come from the Variable Account, the dollar amount of
your annuity payments may go up or down.
3. PURCHASE: The minimum amount ReliaStar Life will accept as an initial
purchase payment is $10,000. ReliaStar Life may choose not to accept any
subsequent purchase payment if it is less than $1,000. ReliaStar Life may choose
not to accept any subsequent purchase payments if the additional payments, when
added to the Contract Value at the next Valuation Date, would exceed $1 million.
4. INVESTMENT OPTIONS: You can put your money in up to 34 investment options
which are described in the prospectuses for the Funds.
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<PAGE>
<TABLE>
<CAPTION>
FIDELITY VARIABLE INSURANCE
AIM VARIABLE INSURANCE FUNDS THE ALGER AMERICAN FUND PRODUCTS FUND
- ------------------------------ ------------------------- -----------------------------
<S> <C> <C>
AIM V.I. Dent Alger American VIP Equity-Income
Demographic Trends Growth Portfolio Portfolio --
Fund Alger American Service Class 2
Leveraged AllCap VIP Growth Portfolio --
Portfolio Service Class 2
Alger American VIP High Income
MidCap Growth Portfolio --
Portfolio Service Class 2
Alger American VIP Money Market
Small Capitalization Portfolio -- Initial
Portfolio Class
</TABLE>
<TABLE>
<CAPTION>
FIDELITY VARIABLE INSURANCE NEUBERGER BERMAN ADVISERS
PRODUCTS FUND II JANUS ASPEN SERIES MANAGEMENT TRUST
- ----------------------------- ---------------------- ---------------------------
<S> <C> <C>
VIP II Contrafund(R) Aggressive Growth Limited Maturity Bond
Portfolio -- Portfolio -- Portfolio
Service Class 2 Service Shares Partners Portfolio
VIP II Index 500 Growth Portfolio -- Socially Responsive
Portfolio -- Initial Service Shares Portfolio
Class International Growth
VIP II Investment Grade Portfolio --
Bond Portfolio -- Service Shares
Initial Class Worldwide Growth
Portfolio --
Service Shares
</TABLE>
<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST PILGRIM VARIABLE PRODUCTS TRUST PUTNAM VARIABLE TRUST
- ------------------------- --------------------------------- -----------------------
<S> <C> <C>
Equity Portfolio Growth Opportunities Putnam VT Growth and
Global Equity Portfolio Portfolio Income Fund --
Managed Portfolio Growth + Value Class IB Shares
Small Cap Portfolio Portfolio Putnam VT New
High Yield Bond Opportunities Fund --
Portfolio Class IB Shares
International Value Putnam VT Voyager
Portfolio Fund -- Class IB
MagnaCap Portfolio Shares
MidCap Opportunities
Portfolio
Research Enhanced Index
Portfolio
SmallCap Opportunities
Portfolio
</TABLE>
Depending upon market conditions, you can make or lose money in any of these
Funds.
ii
<PAGE>
5. EXPENSES: The Contract has insurance features and investment features, and
there are costs related to each.
Each year ReliaStar Life deducts a $30 contract maintenance charge from
your Contract. ReliaStar Life reserves the right to waive this Annual Contract
Charge where the cumulative purchase payments, less any cumulative partial
surrenders, exceed $50,000. We also deduct for insurance and administrative
charges which annually total 1.40% of the average daily value of your Contract
allocated to the investment portfolios.
There are also investment fund annual expenses which range from 0.27% to
1.53% of the average daily value of the investment fund depending upon the
investment option which you select.
If you take your money out, we may assess a withdrawal charge. This charge
is equal to a maximum of 8% in payment years 1, 2, and 3 and reduces to 0 after
payment year 9. We may also assess a state premium tax charge which ranges from
0% to 3.5% depending upon the state.
The following chart is designed to help you understand the expenses in the
Contract. The column "Total Annual Expenses" shows the total of the $30 contract
maintenance charge (which is represented as .06% below), the 1.40% insurance
charges assessed on the Contracts, and the investment expenses and any
applicable 12b-1 fee for each investment portfolio. The next two columns show
you two examples of the expenses, in dollars, you would pay under a Contract.
The examples assume that you invested $1,000 in a Contract, and the Contract
earns 5% annually, and that you withdraw your money: (1) at the end of year 1,
and (2) at the end of year 10. For year 1, the Total Annual Expenses are
assessed as well as the withdrawal charges. For year 10, the example shows the
aggregate of all the annual expenses assessed for the 10 years, but there is no
withdrawal charge. The examples do not assume the addition of any credit. The
premium tax is assumed to be 0% in both examples.
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<PAGE>
<TABLE>
<CAPTION>
EXAMPLES:
TOTAL ANNUAL
EXPENSES AT END OF:
TOTAL ANNUAL TOTAL ANNUAL -------------------
INSURANCE AND PORTFOLIO EXPENSES TOTAL ANNUAL (1) (2)
INVESTMENT FUNDS DISTRIBUTION CHARGES AND 12b-1 FEES EXPENSES 1 YEAR 10 YEARS
- ---------------- -------------------- ------------------ ------------ -------- ----------
<S> <C> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund .............. 1.46% 1.40% 2.86% $106 $365
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio .................... 1.46% 0.79% 2.25% $100 $308
Alger American Leveraged AllCap Portfolio .......... 1.46% 0.93% 2.39% $101 $321
Alger American MidCap Growth Portfolio ............. 1.46% 0.85% 2.31% $100 $314
Alger American Small Capitalization Portfolio ...... 1.46% 0.90% 2.36% $101 $319
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio -- Service Class 2 ..... 1.46% 0.83% 2.29% $100 $312
VIP Growth Portfolio -- Service Class 2 ............ 1.46% 0.93% 2.39% $101 $321
VIP High Income Portfolio -- Service Class 2 ....... 1.46% 0.95% 2.41% $101 $323
VIP Money Market Portfolio -- Initial Class ........ 1.46% 0.27% 1.73% $ 95 $256
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund(R) Portfolio -- Service Class 2... 1.46% 0.95% 2.41% $101 $323
VIP II Index 500 Portfolio -- Initial Class ........ 1.46% 0.28% 1.74% $ 95 $257
VIP II Investment Grade Bond Portfolio --
Initial Class ..................................... 1.46% 0.54% 2.00% $ 97 $284
JANUS ASPEN SERIES:
Aggressive Growth Portfolio -- Service Shares ...... 1.46% 0.92% 2.38% $101 $320
Growth Portfolio -- Service Shares ................. 1.46% 0.92% 2.38% $101 $320
International Growth Portfolio -- Service Shares 1.46% 1.01% 2.47% $102 $329
Worldwide Growth Portfolio -- Service Shares ....... 1.46% 0.95% 2.41% $101 $323
NEUBERGER BERMAN ADVISERS
MANAGEMENT TRUST:
Limited Maturity Bond Portfolio .................... 1.46% 0.76% 2.22% $100 $305
Partners Portfolio ................................. 1.46% 0.87% 2.33% $101 $316
Socially Responsive Portfolio ...................... 1.46% 1.53% 2.99% $107 $377
OCC ACCUMULATION TRUST:
Equity Portfolio ................................... 1.46% 0.91% 2.37% $101 $319
Global Equity Portfolio ............................ 1.46% 1.10% 2.56% $103 $337
Managed Portfolio .................................. 1.46% 0.83% 2.29% $100 $312
Small Cap Portfolio ................................ 1.46% 0.89% 2.35% $101 $318
PILGRIM VARIABLE PRODUCTS TRUST:
Growth Opportunities Portfolio ..................... 1.46% 0.90% 2.36% $101 $319
Growth + Value Portfolio ........................... 1.46% 0.80% 2.26% $100 $309
High Yield Bond Portfolio .......................... 1.46% 0.80% 2.26% $100 $309
International Value Portfolio ...................... 1.46% 1.00% 2.46% $102 $328
MagnaCap Portfolio ................................. 1.46% 0.90% 2.36% $101 $319
MidCap Opportunities Portfolio ..................... 1.46% 0.90% 2.36% $101 $319
Research Enhanced Index Portfolio .................. 1.46% 0.89% 2.35% $101 $318
SmallCap Opportunities Portfolio ................... 1.46% 0.90% 2.36% $101 $319
PUTNAM VARIABLE TRUST:
Putnam VT Growth and Income Fund --
Class IB Shares ................................... 1.46% 0.65% 2.11% $ 98 $294
Putnam VT New Opportunities Fund --
Class IB Shares ................................... 1.46% 0.74% 2.20% $ 99 $303
Putnam VT Voyager Fund -- Class IB Shares .......... 1.46% 0.72% 2.18% $ 99 $301
</TABLE>
Certain of the portfolios are subject to fee waiver or reimbursement
arrangements. The charges listed above reflect any expense reimbursement or fee
waiver. For more detailed information, see Summary of Contract Expenses in the
Prospectus for the Contract.
iv
<PAGE>
6. TAXES: Your earnings are not taxed until you take them out. If you withdraw
money, earnings may come out first and will be taxed as income. If you are
younger than 59 1/2 when you take money out, you may be charged a 10% federal
tax penalty on the amount treated as taxable income. Annuity payments during the
income phase may be considered partly a return of your original investment, in
which case that part of each payment is not taxable as income.
7. ACCESS TO YOUR MONEY: You can take money out at any time during the
accumulation phase. After the first year, you can take up to 10% of your total
purchase payments each year without charge from us. Withdrawals in excess of
that will be charged a maximum of 8% in payment years 1, 2, and 3 which reduces
to 0 after payment year 9. After we have a payment for 9 years, there is no
charge for withdrawals for those payments. Each purchase payment you add to your
Contract has its own 9 year withdrawal charge period. You may also have to pay
income tax and a tax penalty on any money you take out.
8. PERFORMANCE: The value of the Contract will vary up or down depending upon
the investment performance of the investment fund you choose. The following
chart shows total returns through December 31, 1999, for each investment fund
for the time periods shown. This chart reports performance returns only for
periods where the Variable Account offered the specific class of the investment
fund for a complete year. These numbers reflect the annual insurance charges,
the contract maintenance charge, and the investment expenses, 12b-1 fees, and
all other expenses of the investment funds.
These numbers do not reflect the addition of any credit for any period
prior to June 5, 2000. The numbers do not reflect any withdrawal charges, and if
applied these charges would reduce such performance. Past performance is not a
guarantee of future results. Investment in the money market fund option is
neither insured nor guaranteed by the U.S. government and there can be no
assurance that it will be able to maintain a stable net asset value of $1 per
share.
v
<PAGE>
Performances of certain of the portfolios reflect a voluntary expense
limitation, as described in the prospectus. In the absence of this voluntary
limitation the total return would have been lower.
<TABLE>
<CAPTION>
CALENDAR YEAR
1999 1998 1997 1996 1995
-------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund ........................... N/A N/A N/A N/A N/A
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio ................................. 31.84% 45.96% N/A N/A N/A
Alger American Leveraged AllCap Portfolio ....................... N/A N/A N/A N/A N/A
Alger American MidCap Growth Portfolio .......................... 29.97% 28.43% N/A N/A N/A
Alger American Small Capitalization Portfolio ................... 41.38% 13.87% N/A N/A N/A
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio -- Service Class 2 .................. N/A N/A N/A N/A N/A
VIP Growth Portfolio -- Service Class 2 ......................... N/A N/A N/A N/A N/A
VIP High Income Portfolio -- Service Class 2 .................... N/A N/A N/A N/A N/A
VIP Money Market Portfolio -- Initial Class ..................... 3.67% 3.93% 3.96% 3.86% 4.31%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund(R) Portfolio -- Service Class 2 ............... N/A N/A N/A N/A N/A
VIP II Index 500 Portfolio -- Initial Class ..................... 18.79% 26.49% 30.79% 21.02% 35.19%
VIP II Investment Grade Bond Portfolio -- Initial Class ......... (2.47)% 7.28% 7.48% 1.66% 15.60%
JANUS ASPEN SERIES:
Aggressive Growth Portfolio -- Service Shares ................... N/A N/A N/A N/A N/A
Growth Portfolio -- Service Shares .............................. N/A N/A N/A N/A N/A
International Growth Portfolio -- Service Shares ................ N/A N/A N/A N/A N/A
Worldwide Growth Portfolio -- Service Shares .................... N/A N/A N/A N/A N/A
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio ................................. 0.02% 2.88% N/A N/A N/A
Partners Portfolio .............................................. 5.83% 2.70% N/A N/A N/A
Socially Responsive Portfolio ................................... N/A N/A N/A N/A N/A
OCC ACCUMULATION TRUST:
Equity Portfolio ................................................ 1.07% 10.25% N/A N/A N/A
Global Equity Portfolio ......................................... 24.72% 11.66% N/A N/A N/A
Managed Portfolio ............................................... 3.49% 5.58% N/A N/A N/A
Small Cap Portfolio ............................................. (3.24)% (10.35)% N/A N/A N/A
PILGRIM VARIABLE PRODUCTS TRUST:
Growth Opportunities Portfolio .................................. N/A N/A N/A N/A N/A
Growth + Value Portfolio ........................................ 92.24% 17.61% 12.99% 21.30% N/A
High Yield Bond Portfolio ....................................... (4.61)% (0.87)% N/A N/A N/A
International Value Portfolio ................................... 48.05% 15.25% N/A N/A N/A
MagnaCap Portfolio .............................................. N/A N/A N/A N/A N/A
MidCap Opportunities Portfolio .................................. N/A N/A N/A N/A N/A
Research Enhanced Index Portfolio ............................... 4.30% (0.11)% 5.46% 11.61% N/A
SmallCap Opportunities Portfolio ................................ 137.66% 15.61% 13.94% 12.13% N/A
PUTNAM VARIABLE TRUST:
Putnam VT Growth and Income Fund -- Class IB Shares ............. N/A N/A N/A N/A N/A
Putnam VT New Opportunities Fund -- Class IB Shares ............. N/A N/A N/A N/A N/A
Putnam VT Voyager Fund -- Class IB Shares ....................... N/A N/A N/A N/A N/A
</TABLE>
9. DEATH BENEFIT: If you die prior to the income phase, the person you have
chosen as your beneficiary will receive a death benefit. This death benefit will
be the greater of three amounts: 1) the money you've put in reduced for the
proportional amount of any withdrawals, or 2) the current value of your
Contract, or 3) the value of your Contract at the most recent Specified Contract
Anniversary (as defined in the Prospectus for the Contract) plus any purchase
payments since that Anniversary, less the proportional amount of any withdrawals
since that Anniversary. The Contract Value in (2) and (3) will be reduced by the
amount of any credits applied within 12 months of the date of death. If you die
after age 85, your beneficiary will receive the Contract Value.
vi
<PAGE>
10. OTHER INFORMATION
FREE LOOK. If you cancel the Contract within 10 days after receiving it (or
whatever period is required in your state), we will return the Contract Value
without assessing a withdrawal charge. You will receive whatever your Contract
is worth on the day we receive your request, less the amount of credits applied
to your Contract. This may be more or less than your original payment.
If you reside in a state requiring the return of purchase payments made for
any cancellation during a free look period, the amount of your initial payments
will be allocated to the money market option during the free look period plus
five calendar days. If you cancel your Contract we will return your payments
made or the Contract Value less any credits, whichever is larger. If you keep
your Contract, we will then allocate your initial payments plus credits and any
contract earnings to the appropriate fund(s) you have chosen.
NO PROBATE. In most cases, when you die, the person you choose as your
beneficiary will receive the death benefit without going through probate.
WHO SHOULD PURCHASE THE CONTRACT? This Contract is designed for people seeking
long-term tax-deferred accumulation of assets, generally for retirement or other
long-term purposes. The tax-deferred feature is most attractive to people in
high federal and state tax brackets. You should not buy this Contract if you are
looking for a short-term investment or if you cannot take the risk of getting
back less money than you put in.
ADDITIONAL FEATURES. This Contract has additional Features you might be
interested in. These include:
* You can arrange to have money automatically sent to you each month
while your Contract is still in the accumulation phase. Of course,
you'll have to pay taxes on money you receive. We call this feature
the Systematic Withdrawal Program.
* You can arrange to have a regular amount of money automatically
transferred to investment portfolios each month to provide for regular
level investments over time. We call this feature Dollar Cost
Averaging.
* ReliaStar Life will automatically readjust the money in your Contract
between investment portfolios periodically to keep the blend you
select. We call this feature Portfolio Rebalancing.
These features are not available in all states and may not be suitable for your
particular situation.
11. INQUIRIES If you need more information, please contact us at:
ReliaStar Life Insurance Company
ReliaStar Service Center
P.O. Box 5050
Minot, ND 58702-5050
1-877-884-5050
or the distributor of the Contracts, our affiliated Company,
Washington Square Securities, Inc.
20 Washington Avenue South
Minneapolis, Minnesota 55401
1-800-621-3750
or your registered representative.
vii
<PAGE>
[LOGO] RELIASTAR
20 Washington Avenue South
Minneapolis, Minnesota 55401
1-800-621-3750
------------------------
ADVANTAGE SE VARIABLE ANNUITY
INDIVIDUAL DEFERRED VARIABLE/FIXED ANNUITY CONTRACTS
ISSUED BY
THE RELIASTAR SELECT VARIABLE ACCOUNT OF
RELIASTAR LIFE INSURANCE COMPANY
This Prospectus offers flexible purchase payment Individual Deferred
Variable/Fixed Annuity Contracts. The Contracts are sold both as non-qualified
contracts and as individual retirement annuities ("IRAs") established pursuant
to the Internal Revenue Code. (See "Federal Tax Status.") Annuity payouts from
the Contracts are deferred until a selected later date.
Subject to certain restrictions, you can allocate premiums to:
* the Fixed Account, an account that provides a minimum specified
rate of interest; and
* Sub-Accounts of Select Variable Account (the "Variable Account"),
a variable account allowing you to invest in certain portfolios
of the following Funds (the "Investment Funds"):
<TABLE>
<S> <C>
AIM Variable Insurance Funds Neuberger Berman Advisers Management Trust
The Alger American Fund OCC Accumulation Trust
Fidelity Variable Insurance Products Fund Pilgrim Variable Products Trust
Fidelity Variable Insurance Products Fund II Putnam Variable Trust
Janus Aspen Series
</TABLE>
The Variable Account, your account value and the amount of any variable
annuity payments that you receive will vary, primarily based on the investment
performance of the Investment Funds you select. (For more information about
investing in the Investment Funds, see "Investments of the Variable Account.")
The Fixed Account is the general account of ReliaStar Life Insurance Company
("ReliaStar Life"). The Fixed Account is not available to Contract Owners in the
States of Maryland, Oregon, South Carolina and Washington.
The Contract has a "bonus credit" feature, as described on page 20. The
charges and expenses assessed in connection with the Contract may be higher in
certain instances than for contracts without a credit feature.
Additional information about the Contracts, ReliaStar Life and the Variable
Account, contained in a Statement of Additional Information dated June 5, 2000,
has been filed with the Securities and Exchange Commission. The Statement of
Additional Information is available by accessing the SEC's Internet web site
(http: // www.sec.gov) or upon request without charge by writing to ReliaStar
Life Insurance Company, ReliaStar Service Center, P.O. Box 5050, Minot, North
Dakota 58702-5050 or by calling 1-877-884-5050. The Statement of Additional
Information is incorporated by reference in this Prospectus and its Table of
Contents can be found on page 33 of this Prospectus.
THIS PROSPECTUS SETS FORTH CONCISELY THE INFORMATION ABOUT THE CONTRACTS THAT A
PROSPECTIVE INVESTOR OUGHT TO KNOW BEFORE INVESTING AND SHOULD BE RETAINED FOR
FUTURE REFERENCE.
These insurance and investment products:
* ARE NOT BANK DEPOSITS OR GUARANTEED BY A BANK
* ARE NOT INSURED OR GUARANTEED BY THE FDIC, THE FEDERAL RESERVE BOARD
OR ANY OTHER GOVERNMENT AGENCY
* ARE AFFECTED BY MARKET FLUCTUATIONS AND SO INVOLVE INVESTMENT RISK,
INCLUDING POSSIBLE LOSS OF PRINCIPAL
* HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON
THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE
CONTRARY IS A CRIMINAL OFFENSE.
THIS PROSPECTUS IS ACCOMPANIED BY THE CURRENT PROSPECTUSES FOR THE INVESTMENT
FUNDS OFFERED BY THE AIM VARIABLE INSURANCE FUNDS, THE ALGER AMERICAN FUND,
FIDELITY VARIABLE INSURANCE PRODUCTS FUND, FIDELITY VARIABLE INSURANCE PRODUCTS
FUND II, JANUS ASPEN SERIES, NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST, OCC
ACCUMULATION TRUST, PILGRIM VARIABLE PRODUCTS TRUST, AND PUTNAM VARIABLE TRUST
AND IS VALID ONLY WHEN ACCOMPANIED BY THESE PROSPECTUSES.
THE DATE OF THIS PROSPECTUS IS JUNE 5, 2000.
<PAGE>
TABLE OF CONTENTS
Definitions ............................................................ 4
Summary of Contract Expenses ........................................... 6
ReliaStar Life ......................................................... 12
The Variable Account ................................................... 12
Investments of the Variable Account .................................... 12
Reinvestment .......................................................... 16
Addition, Deletion or Substitution of Investment Fund Shares .......... 16
Charges Made by ReliaStar Life ......................................... 16
Surrender Charge (Contingent Deferred Sales Charge) ................... 16
Annual Contract Charge ................................................ 17
Waiver of Charges ..................................................... 18
Mortality Risk Premium ................................................ 18
Expense Risk Premium .................................................. 18
Administration Charge ................................................. 18
Premium and Other Taxes ............................................... 18
General: Reduction or Waiver of Charges or Minimum Purchase Payments .. 18
Expenses of the Investment Funds ...................................... 19
Administration of the Contracts ........................................ 19
The Contracts .......................................................... 19
Allocation of Purchase Payments ....................................... 19
Credits ............................................................... 20
Sub-Account Accumulation Unit Value ................................... 20
Net Investment Factor ................................................. 20
Death Benefit Before the Annuity Commencement Date .................... 21
Death Benefit After the Annuity Commencement Date ..................... 21
Surrender (Redemption) ................................................ 22
Systematic Withdrawals ................................................ 22
Transfers ............................................................. 22
Written Transfers ..................................................... 23
Assignments ........................................................... 24
Contract Owner and Beneficiaries ...................................... 24
Contract Inquiries .................................................... 25
Annuity Provisions ..................................................... 25
Annuity Commencement Date ............................................. 25
Annuity Form Selection ................................................ 25
Annuity Forms ......................................................... 25
Frequency and Amount of Annuity Payments .............................. 26
Annuity Payments ...................................................... 26
Sub-Account Annuity Unit Value ........................................ 26
Assumed Investment Rate ............................................... 26
Federal Tax Status ..................................................... 27
Introduction .......................................................... 27
Tax Status of the Contract ............................................ 27
Taxation of Annuities ................................................. 28
Taxation of Death Benefit Proceeds .................................... 28
Penalty Tax on Certain Distributions .................................. 29
Possible Changes in Taxation .......................................... 29
Transfers, Assignments or Exchanges of a Contract ..................... 29
Withholding ........................................................... 29
Multiple Contracts .................................................... 29
Taxation of Qualified Plans ........................................... 29
Possible Charge for ReliaStar's Taxes ................................. 30
Other Tax Consequences ................................................ 30
2
<PAGE>
Voting of Fund Shares .................................................. 30
Distribution of the Contracts .......................................... 31
Revocation ............................................................. 31
Reports to Owners ...................................................... 31
Legal Proceedings ...................................................... 32
Experts ................................................................ 32
Further Information .................................................... 32
Statement of Additional Information Table of Contents .................. 33
Appendix A: The Fixed Account .......................................... A-1
Appendix B: Performance Information and Condensed Financial Information B-1
3
<PAGE>
DEFINITIONS
ANNUITANT. The person who is named by the Owner whose life determines the
annuity benefits payable.
ANNUITY COMMENCEMENT DATE (COMMENCEMENT DATE). The date on which the annuity
payments begin, which must be the first day of a month. The date will be the
first day of the month following the Annuitant's 75th birthday unless an earlier
or later date has been selected by the Owner and, if the date is later, it has
been agreed to by ReliaStar Life.
BENEFICIARY. The person who is named to receive the Contract Value upon the
death of the Owner before the Annuity Commencement Date or to receive the
balance of the annuity payments, if any, under the Annuity Form in effect at the
Annuitant's death.
CODE. The Internal Revenue Code of 1986, as amended.
CONTRACT ANNIVERSARY. Occurs yearly on the same day and month the Contract was
issued.
CONTRACT OWNER (OWNER). The person who controls all the rights and privileges
under the Contract. The Annuitant owns the Contract unless another Owner is
named as provided for in the Contract. The Contract may be owned by one, but no
more than two, natural persons only, except when it is held under a retirement
plan or program described in Section 408 or 408A or similar provisions of the
Code.
CONTRACT VALUE. The sum of (a) the Variable Account Contract Value, which is the
value of the Sub-Account Accumulation Units under the Contract plus (b) the
Fixed Account Contract Value, which is the sum of purchase payments allocated to
the Fixed Account under the Contract, plus credited interest, minus surrenders,
surrender charges previously applied, and any annual administrative charges
applicable to the Fixed Account, and minus any transfers to the Variable
Account.
CONTRACT YEAR. Each twelve-month period starting with the date the Contract was
issued and each Contract Anniversary after that.
DEATH BENEFIT. The amount payable upon the death of a Contract Owner before the
Annuity Commencement Date. (See "Death Benefit Before the Annuity Commencement
Date.")
DEATH BENEFIT VALUATION DATE. The Death Benefit Valuation Date is the Valuation
Date next following the date ReliaStar Life receives proof of death and a
written request from the Beneficiary for a single sum payment or an Annuity Form
permitted by Section 72(s) of the Code.
FIXED ACCOUNT. The Fixed Account is the general account of ReliaStar Life, which
consists of all assets of ReliaStar Life other than those allocated to separate
accounts of ReliaStar Life.
FIXED ANNUITY. An annuity with payments which do not vary as to dollar amount.
INITIAL PURCHASE PAYMENT TRANSFER DATE. The Initial Purchase Payment Transfer
Date is the date that is five calendar days after the applicable state free look
period, and is generally 16 days after the Contract Date. This may vary by
state.
INVESTMENT FUNDS. Any open-end management investment company (or portfolio
thereof) or unit investment trust (or series thereof) in which a Sub-Account
invests.
QUALIFIED PLAN. A retirement plan under Section 408 or 408A or similar
provisions of the Code.
SPECIFIED CONTRACT ANNIVERSARY. Each consecutive nine year anniversary date
measured from the date the Contract was issued. The Specified Contract
Anniversary is used to determine the Death Benefit payable if the Contract Owner
dies before the Annuity Commencement Date. (See "Death Benefit Before the
Annuity Commencement Date.")
SUB-ACCOUNT. That portion of the Variable Account which invests in shares of a
specific Investment Fund.
SUB-ACCOUNT ACCUMULATION UNIT. A unit of measure used to determine the Variable
Account Contract Value before annuity payments start.
SUCCESSOR BENEFICIARY. The person named to become the Beneficiary if the
Beneficiary is not alive.
VALUATION DATE. Each day on which the New York Stock Exchange is open for
business except for a day that a Sub-Account's corresponding Fund does not
value its shares. The New York Stock Exchange is currently closed on weekends
and on the following holidays: New Year's Day; Martin Luther King, Jr. Day;
President's Day; Good Friday; Fourth of July; Labor Day; Thanksgiving Day; and
Christmas Day.
VALUATION PERIOD. The time interval between a Valuation Date and the next
Valuation Date.
4
<PAGE>
VARIABLE ACCOUNT. A separate account of ReliaStar Life consisting of assets set
aside by ReliaStar Life, the investment performance of which is kept separate
from that of the general assets of ReliaStar Life.
VARIABLE ANNUITY. A series of periodic payments to the Contract Payee which will
vary in amount, primarily based on the investment results of the Sub-Accounts
under the Contract.
VARIABLE ANNUITY UNIT. A unit of measure used in the calculation of the second
and each subsequent variable annuity payment from the Variable Account.
5
<PAGE>
SUMMARY OF CONTRACT EXPENSES
CONTRACT OWNER TRANSACTION EXPENSES
Sales Charge Imposed on Purchases ......................................... None
Surrender Charge (as a percentage of amounts surrendered attributable to
purchase payments made in the last nine Contract Years) (a)
CONTRACT YEAR OF SURRENDER MINUS SURRENDER CHARGE AS A PERCENTAGE
CONTRACT YEAR OF PURCHASE PAYMENT OF EACH PURCHASE PAYMENT
--------------------------------- --------------------------------
0-2 8%
3-4 7
5-6 6
7 4
8 2
9 and later 0
Transfer Charge (b) ..................................................... $25
ANNUAL CONTRACT CHARGE .................................................. $30
VARIABLE ACCOUNT ANNUAL EXPENSES (as a percentage of average account
value)
Mortality and Expense Risk Premiums ................................... 1.25%
Other Account Fees and Expenses (See "Administration Charge") ......... .15%
Total Variable Account Annual Expenses ................................ 1.40%
In addition to the costs and expenses shown in this table, state premium
taxes may also be applicable. For more information on state premium taxes, see
"Premium and Other Taxes."
6
<PAGE>
ANNUAL INVESTMENT FUND EXPENSES AFTER REIMBURSEMENTS (d)(f)(g)(h)(i):
(as a percentage of Investment Fund average net assets)
<TABLE>
<CAPTION>
TOTAL INVESTMENT
MANAGEMENT OTHER FUND ANNUAL
FEES EXPENSES 12b-1 FEES EXPENSES
---------- -------- ---------- ----------------
<S> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund (c) ....................... 0.85% 0.55% N/A 1.40%
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio (c) ............................. 0.75% 0.04% N/A 0.79%
Alger American Leveraged AllCap Portfolio (c) ................... 0.85% 0.08% N/A 0.93%
Alger American MidCap Growth Portfolio (c) ...................... 0.80% 0.05% N/A 0.85%
Alger American Small Capitalization Portfolio (c) ............... 0.85% 0.05% N/A 0.90%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND (VIP):
VIP Equity-Income Portfolio -- Service Class 2 (c)(e)(j) ........ 0.48% 0.10% 0.25% 0.83%
VIP Growth Portfolio -- Service Class 2 (c)(e)(j) ............... 0.58% 0.10% 0.25% 0.93%
VIP High Income Portfolio -- Service Class 2 (c)(e)(j) .......... 0.58% 0.12% 0.25% 0.95%
VIP Money Market Portfolio -- Initial Class ..................... 0.18% 0.09% N/A 0.27%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II (VIP II):
VIP II Contrafund(R) Portfolio -- Service Class 2 (c)(e)(j) ..... 0.58% 0.12% 0.25% 0.95%
VIP II Index 500 Portfolio -- Initial Class (c)(d) .............. 0.24% 0.04% N/A 0.28%
VIP II Investment Grade Bond Portfolio -- Initial Class (c) ..... 0.43% 0.11% N/A 0.54%
JANUS ASPEN SERIES:
Aggressive Growth Portfolio -- Service Shares (e)(f) ............ 0.65% 0.02% 0.25% 0.92%
Growth Portfolio -- Service Shares (e)(f) ....................... 0.65% 0.02% 0.25% 0.92%
International Growth Portfolio -- Service Shares (e)(f) ......... 0.65% 0.11% 0.25% 1.01%
Worldwide Growth Portfolio -- Service Shares (e)(f) ............. 0.65% 0.05% 0.25% 0.95%
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio (c) ............................. 0.65% 0.11% N/A 0.76%
Partners Portfolio (c) .......................................... 0.80% 0.07% N/A 0.87%
Socially Responsive Portfolio (c)(g) ............................ 0.85% 0.68% N/A 1.53%
OCC ACCUMULATION TRUST:
Equity Portfolio (c)(h) ......................................... 0.80% 0.11% N/A 0.91%
Global Equity Portfolio (c)(h) .................................. 0.80% 0.30% N/A 1.10%
Managed Portfolio (c)(h) ........................................ 0.77% 0.06% N/A 0.83%
Small Cap Portfolio (c)(h) ...................................... 0.80% 0.09% N/A 0.89%
PILGRIM VARIABLE PRODUCTS TRUST:
Growth Opportunities Portfolio (i)(j) ........................... 0.75% 0.15% N/A 0.90%
Growth + Value Portfolio (i) .................................... 0.75% 0.05% N/A 0.80%
High Yield Bond Portfolio (i) ................................... 0.75% 0.05% N/A 0.80%
International Value Portfolio (i) ............................... 1.00% 0.00% N/A 1.00%
MagnaCap Portfolio (i)(j) ....................................... 0.75% 0.15% N/A 0.90%
MidCap Opportunities Portfolio (i)(j) ........................... 0.75% 0.15% N/A 0.90%
Research Enhanced Index Portfolio (i) ........................... 0.75% 0.14% N/A 0.89%
SmallCap Opportunities Portfolio (i) ............................ 0.75% 0.15% N/A 0.90%
PUTNAM VARIABLE TRUST:
Putnam VT Growth and Income Fund -- Class IB Shares (e) ......... 0.46% 0.04% 0.15% 0.65%
Putnam VT New Opportunities Fund -- Class IB Shares (e) ......... 0.54% 0.05% 0.15% 0.74%
Putnam VT Voyager Fund -- Class IB Shares (e) ................... 0.53% 0.04% 0.15% 0.72%
</TABLE>
The fee and expense information regarding the Investment Funds was provided
by the Funds.
Except for the Pilgrim Variable Products Trust, neither the Investment
Funds nor their Advisers are affiliated with ReliaStar Life.
7
<PAGE>
EXAMPLES
If you surrender your contract at the end of the applicable time period,
you would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets and no credit applied.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund ....................... $106 $166 $229 $365
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio ............................. 100 148 199 308
Alger American Leveraged AllCap Portfolio ................... 101 152 206 321
Alger American MidCap Growth Portfolio ...................... 100 150 202 314
Alger American Small Capitalization Portfolio ............... 101 152 205 319
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio -- Service Class 2 .............. 100 150 201 312
VIP Growth Portfolio -- Service Class 2 ..................... 101 152 206 321
VIP High Income Portfolio -- Service Class 2 ................ 101 153 207 323
VIP Money Market Portfolio -- Initial Class ................. 95 133 173 256
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund(R) Portfolio -- Service Class 2 ........... 101 153 207 323
VIP II Index 500 Portfolio -- Initial Class ................. 95 133 174 257
VIP II Investment Grade Bond Portfolio -- Initial Class ..... 97 141 187 284
JANUS ASPEN SERIES:
Aggressive Growth Portfolio -- Service Shares ............... 101 152 206 320
Growth Portfolio -- Service Shares .......................... 101 152 206 320
International Growth Portfolio -- Service Shares ............ 102 155 210 329
Worldwide Growth Portfolio -- Service Shares ................ 101 153 207 323
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio ............................. 100 147 198 305
Partners Portfolio .......................................... 101 151 203 316
Socially Responsive Portfolio ............................... 107 170 235 377
OCC ACCUMULATION TRUST:
Equity Portfolio ............................................ 101 152 205 319
Global Equity Portfolio ..................................... 103 158 215 337
Managed Portfolio ........................................... 100 150 201 312
Small Cap Portfolio ......................................... 101 151 204 318
PILGRIM VARIABLE PRODUCTS TRUST:
Growth Opportunities Portfolio .............................. 101 152 205 319
Growth + Value Portfolio .................................... 100 149 200 309
High Yield Bond Portfolio ................................... 100 149 200 309
International Value Portfolio ............................... 102 155 210 328
MagnaCap Portfolio .......................................... 101 152 205 319
MidCap Opportunities Portfolio .............................. 101 152 205 319
Research Enhanced Index Portfolio ........................... 101 151 204 318
SmallCap Opportunities Portfolio ............................ 101 152 205 319
PUTNAM VARIABLE TRUST:
Putnam VT Growth and Income Fund -- Class IB Shares ......... 98 144 193 294
Putnam VT New Opportunities Fund -- Class IB Shares ......... 99 147 197 303
Putnam VT Voyager Fund -- Class IB Shares ................... 99 146 196 301
</TABLE>
8
<PAGE>
If you annuitize your contract at the end of the applicable time period,
you would pay the following expenses on a $1,000 investment, assuming a 5%
annual return on assets and a 4% credit.*
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund ....................... $106 $103 $175 $365
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio ............................. 100 85 145 308
Alger American Leveraged AllCap Portfolio ................... 101 89 152 321
Alger American MidCap Growth Portfolio ...................... 100 87 148 314
Alger American Small Capitalization Portfolio ............... 101 89 151 319
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio -- Service Class 2 .............. 100 87 147 312
VIP Growth Portfolio -- Service Class 2 ..................... 101 89 152 321
VIP High Income Portfolio -- Service Class 2 ................ 101 90 153 323
VIP Money Market Portfolio -- Initial Class ................. 95 70 119 256
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund(R) Portfolio -- Service Class 2 ........... 101 89 151 323
VIP II Index 500 Portfolio -- Initial Class ................. 95 70 120 257
VIP II Investment Grade Bond Portfolio -- Initial Class ..... 97 78 133 284
JANUS ASPEN SERIES:
Aggressive Growth Portfolio -- Service Shares ............... 101 89 152 320
Growth Portfolio -- Service Shares .......................... 101 89 152 320
International Growth Portfolio -- Service Shares ............ 102 92 156 329
Worldwide Growth Portfolio -- Service Shares ................ 101 90 153 323
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio ............................. 100 84 144 305
Partners Portfolio .......................................... 101 88 149 316
Socially Responsive Portfolio ............................... 107 107 161 377
OCC ACCUMULATION TRUST:
Equity Portfolio ............................................ 101 89 151 319
Global Equity Portfolio ..................................... 103 95 161 337
Managed Portfolio ........................................... 100 87 147 312
Small Cap Portfolio ......................................... 101 88 150 318
PILGRIM VARIABLE PRODUCTS TRUST:
Growth Opportunities Portfolio .............................. 101 89 151 319
Growth + Value Portfolio .................................... 100 86 146 309
High Yield Bond Portfolio ................................... 100 86 146 309
International Value Portfolio ............................... 102 92 156 328
MagnaCap Portfolio .......................................... 101 89 151 319
MidCap Opportunities Portfolio .............................. 101 89 151 319
Research Enhanced Index Portfolio ........................... 101 88 150 318
SmallCap Opportunities Portfolio ............................ 101 89 151 319
PUTNAM VARIABLE TRUST:
Putnam VT Growth and Income Fund -- Class IB Shares ......... 98 81 139 294
Putnam VT New Opportunities Fund -- Class IB Shares ......... 99 84 143 303
Putnam VT Voyager Fund -- Class IB Shares ................... 99 83 142 301
</TABLE>
- --------------
* If the Contract's Annuity Commencement Date occurs during the first two
Contract Years following the date the Contract was issued, a Surrender Charge
is deducted. In addition, if the Annuity Commencement Date occurs within three
years of making any purchase payment, the amount of any credit applicable to
that payment is deducted from the amount of the Contract Value. The expenses
shown in years 1 and 3 reflect these deductions.
9
<PAGE>
If you do not surrender your contract at the end of the applicable time
period, you would pay the following expenses on a $ 1,000 investment, assuming a
5% annual return on assets and no credit applied.
<TABLE>
<CAPTION>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
<S> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund ....................... $34 $103 $175 $365
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio ............................. 28 85 145 308
Alger American Leveraged AllCap Portfolio ................... 29 89 152 321
Alger American MidCap Growth Portfolio ...................... 28 87 148 314
Alger American Small Capitalization Portfolio ............... 29 89 151 319
FIDELITY VARIABLE INSURANCE PRODUCTS FUND:
VIP Equity-Income Portfolio -- Service Class 2 .............. 28 87 147 312
VIP Growth Portfolio -- Service Class 2 ..................... 29 89 152 321
VIP High Income Portfolio -- Service Class 2 ................ 29 90 153 323
VIP Money Market Portfolio -- Initial Class ................. 23 70 119 256
FIDELITY VARIABLE INSURANCE PRODUCTS FUND II:
VIP II Contrafund(R) Portfolio -- Service Class 2 ........... 29 90 153 323
VIP II Index 500 Portfolio -- Initial Class ................. 23 70 120 257
VIP II Investment Grade Bond Portfolio -- Initial Class ..... 25 78 133 284
JANUS ASPEN SERIES:
Aggressive Growth Portfolio -- Service Shares ............... 29 89 152 320
Growth Portfolio -- Service Shares .......................... 29 89 152 320
International Growth Portfolio -- Service Shares ............ 30 92 156 329
Worldwide Growth Portfolio -- Service Shares ................ 29 90 153 323
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
Limited Maturity Bond Portfolio ............................. 28 84 144 305
Partners Portfolio .......................................... 29 88 149 316
Socially Responsive Portfolio ............................... 35 107 181 377
OCC ACCUMULATION TRUST:
Equity Portfolio ............................................ 29 89 151 319
Global Equity Portfolio ..................................... 31 95 161 337
Managed Portfolio ........................................... 28 87 147 312
Small Cap Portfolio ......................................... 29 88 150 318
PILGRIM VARIABLE PRODUCTS TRUST:
Growth Opportunities Portfolio .............................. 29 89 151 319
Growth + Value Portfolio .................................... 28 86 146 309
High Yield Bond Portfolio ................................... 28 86 146 309
International Value Portfolio ............................... 30 92 156 328
MagnaCap Portfolio .......................................... 29 89 151 319
MidCap Opportunities Portfolio .............................. 29 89 151 319
Research Enhanced Index Portfolio ........................... 29 88 150 318
SmallCap Opportunities Portfolio ............................ 29 89 151 319
PUTNAM VARIABLE TRUST:
Putnam VT Growth and Income Fund -- Class IB Shares ......... 26 81 139 294
Putnam VT New Opportunities Fund -- Class IB Shares ......... 27 84 143 303
Putnam VT Voyager Fund -- Class IB Shares ................... 27 83 142 301
</TABLE>
- ---------------
(a) In certain situations amounts can be surrendered without any surrender
charge. For more information on the Surrender Charge, see "Surrender Charge
(Contingent Deferred Sales Charge)." ReliaStar Life reserves the right to
charge a partial surrender processing fee not to exceed the lesser of 2% of
the partial surrender amount or $25. For more information on the processing
fee, see "Surrender (Redemption)."
(b) ReliaStar Life currently imposes a charge of $25 per transfer for transfers
between the Sub-Accounts or to the Fixed Account after 24 transfers per
Contract Year. It reserves the right to impose a fee not to exceed $25 per
transfer on any transfer or to restrict the number of transfers.
10
<PAGE>
(c) ReliaStar Life or its affiliates may receive compensation from an affiliate
or affiliates of certain of the Funds based upon an annual percentage of
the average net assets held in that Fund by ReliaStar Life and certain of
ReliaStar Life's insurance company affiliates. The percentage paid may vary
from one Fund company to another. These amounts are intended to compensate
ReliaStar Life or ReliaStar Life's affiliates for administrative, record
keeping, distribution in some cases, and other services provided by such
parties to the Funds and/or the Funds' affiliates. Currently, ReliaStar
Life has service arrangements with A I M Advisors, Inc., Fred Alger
Management, Inc., Fidelity Investments Institutional Operations Company and
Fidelity Distributors Corporation, Neuberger Berman Management Inc., and
OpCap Advisors. Payments of such amounts by an affiliate or affiliates of
the Funds do not increase the fees paid by the Funds or their shareholders.
(d) FMR agreed to reimburse a portion of Index 500 Portfolio's expenses during
the period. Without this reimbursement, the Portfolios' management fee,
other expenses and total expenses would have been .24%, .10%, and .34%,
respectively. Expense reimbursements are voluntary. There is no assurance
of ongoing reimbursement.
(e) The Fund's distribution plan or "Rule 12b-1 Plan" is described in the
Fund's prospectus. See Fund prospectus for details.
(f) Expenses are based on the estimated expenses that the new Service Shares
Class of each Portfolio expects to incur in its initial fiscal year. All
expenses are stated without the effect of any expense offset arrangements.
(g) Neuberger Berman Management Inc. ("NBMI") has undertaken to reimburse the
Socially Responsive Portfolio for certain operating expenses, including the
compensation of Neuberger Berman Advisers Management Trust and excluding
taxes, interest, extraordinary expenses, brokerage commissions and
transactions costs, that exceed in the aggregate, 1.50% of the average
daily net asset value of the Socially Responsive Portfolio through May 1,
2001. There can be no assurance that this policy will be continued. See
"Expense Limitation" in the Socially Responsive Portfolio prospectus for
further information.
(h) The Management Fees reflect effective management fees after taking into
effect any waiver. Other Expenses are shown net of certain expense offsets
afforded the Portfolios. Total Investment Fund Annual Expenses for the
Equity, Small Cap and Managed Portfolios are limited by OpCap Advisors so
that their respective annualized operating expenses (net of any expense
offsets) do not exceed 1.00% of average daily net assets. Total Investment
Fund Annual Expenses for the Global Equity Portfolio are limited to 1.25%
of average daily net assets (net of any expense offsets).
(i) The investment adviser to the Pilgrim Variable Products Trust has agreed to
reimburse the Growth + Value Portfolio and High Yield Bond Portfolio for
any expenses in excess of 0.80% of each Portfolio's average daily net
assets. It also has agreed to reimburse the Growth Opportunities Portfolio,
MagnaCap Portfolio, MidCap Opportunities Portfolio, Research Enhanced Index
Portfolio, and SmallCap Opportunities Portfolio for expenses in excess of
.90% and the International Value Portfolio for expenses in excess of 1.00%.
In the absence of these expense reimbursements, the Total Investment Fund
Annual Expenses that would have been paid by each Portfolio during its
fiscal year ended December 31, 1999 would have been: Growth Opportunities
Portfolio: 1.09%; Growth + Value Portfolio: 0.97%; High Yield Bond
Portfolio: 1.11%; International Value Portfolio: 1.52%; MagnaCap Portfolio:
1.09%; MidCap Opportunities Portfolio: 1.09%; Research Enhanced Index
Portfolio: 1.26%; SmallCap Opportunities Portfolio: 1.09%. Expense
reimbursements are voluntary. There is no assurance of ongoing
reimbursement.
(j) This portfolio had not commenced operations as of December 31, 1999, and
therefore expenses are estimated.
THE EXAMPLES SHOWN IN THE TABLE ABOVE SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE MORE OR LESS
THAN THOSE SHOWN. THE 5% ANNUAL RETURN ASSUMED IS HYPOTHETICAL AND SHOULD NOT BE
CONSIDERED A REPRESENTATION OF PAST OR FUTURE ANNUAL RETURNS, WHICH MAY BE
GREATER OR LESS THAN THE ASSUMED RATE.
The purpose of this table is to assist you in understanding the various
costs and expenses that you will bear either directly or indirectly. The table
reflects the expenses of the Variable Account as well as those of the Investment
Funds. The $30 Annual Contract Charge is reflected as an annual percentage
charge in this table based on the anticipated average net assets in the Variable
Account and Fixed Account, which translates to a charge equal to an annual rate
of 0.056% of the Variable Account and Fixed Account values. There is an
accumulation unit value history contained in Appendix B Performance Information
and Condensed Financial Information.
For Performance Information and Condensed Financial Information, see
Appendix B.
11
<PAGE>
RELIASTAR LIFE
ReliaStar Life, organized in 1885, is a Minnesota stock life insurance
company. ReliaStar Life is a direct, wholly-owned subsidiary of ReliaStar
Financial Corp. ("ReliaStar"), a publicly traded Delaware holding company, whose
shares are listed on the New York Stock Exchange. ReliaStar Life offers
individual life insurance and annuities, employee benefits, and retirement
contracts. ReliaStar Life is admitted to do business in the District of Columbia
and all states except New York. Its home office is at 20 Washington Avenue
South, Minneapolis, Minnesota 55401 (telephone 1-800-621-3750). Its
administrative office is at P.O. Box 5050, Minot, North Dakota 58702-5050
(telephone 1-877-884-5050).
ReliaStar, the parent company of ReliaStar Life, has entered into an
Agreement and Plan of Merger dated as of April 30, 2000 (the "Agreement"), with
ING Groep N.V. ("ING") and ING America Insurance Holdings, Inc. The Agreement
provides for the acquisition of ReliaStar and its subsidiaries by ING. The
acquisition is currently expected to be completed in the third quarter of 2000.
The completion of the transaction is subject to various contingencies and to the
receipt of all regulatory and shareholder approvals. Following the completion of
the transaction, ReliaStar Life will continue to be responsible for all
contracts issued by it.
The Contracts described in this Prospectus are nonparticipating. The
capital and surplus of ReliaStar Life should be considered as bearing only upon
the ability of ReliaStar Life to meet its obligations under the Contracts.
ReliaStar is a charter member of the Insurance Marketplace Standard
Association ("IMSA"). Companies that belong to IMSA subscribe to a rigorous set
of standards that cover the various aspects of sales and service for
individually sold life insurance and annuities. IMSA members have adopted
policies and procedures that demonstrate a commitment to honesty, fairness and
integrity in all customer contacts involving sales and service of individual
life insurance and annuity products.
THE VARIABLE ACCOUNT
The Variable Account is a separate account of ReliaStar Life established by
the Board of Directors of ReliaStar Life on November 12, 1981, pursuant to the
laws of the State of Minnesota. The Variable Account is registered with the
Securities and Exchange Commission as a unit investment trust under the
Investment Company Act of 1940, as amended ("1940 Act"). Such registration does
not involve supervision by the Commission of the management or investment
policies or practices of the Variable Account, ReliaStar Life or the Portfolios.
ReliaStar Life has complete ownership and control of the assets in the Variable
Account, but these assets are held separately from ReliaStar Life's other assets
and are not part of ReliaStar Life's General Account.
The portion of the assets of the Variable Account equal to the reserves and
other contract liabilities of the Variable Account will not be charged with
liabilities incurred in any other business that ReliaStar Life may conduct.
ReliaStar Life has the right to transfer to its General Account any assets of
the Variable Account which are in excess of such reserves and other liabilities.
The income, if any, and gains, and losses, realized or unrealized, of the
Variable Account will be credited to or charged against the Variable Account in
accordance with the contracts supported by the Variable Account, without regard
to the other income, gains or losses of ReliaStar Life.
Purchase payments allocated to the Variable Account under a Contract are
invested in one or more Sub-Accounts of the Variable Account, as selected by
you, the Owner. The future Variable Account Contract Value depends primarily on
the investment performance of the Investment Funds whose shares are held in the
Sub-Accounts selected.
INVESTMENTS OF THE VARIABLE ACCOUNT
When you apply for a Contract, you can allocate purchase payments to one or
more of the Sub-Accounts. There are currently 34 Sub-Accounts offered through
this Prospectus. Each Sub-Account invests in shares of one of the Investment
Funds at its net asset value. As Owner, you can change a purchase payment
allocation for future purchase payments and can transfer all or part of the
values in a Sub-Account to another Sub-Account. An Owner may make partial or
complete transfers to the Fixed Account from the Variable Account at any time.
12
<PAGE>
The following chart lists the Investment Funds and the investment advisers
and subadvisers to the Funds, and provides summary information regarding the
investment objective and characteristic portfolio investments of each Fund.
INVESTMENT FUNDS
<TABLE>
<CAPTION>
ADVISER/
FUND GROUP FUND SUBADVISER MONEY MARKET FIXED INCOME GROWTH & INCOME
=================== ================= ===================== ============== ============== =================
<S> <C> <C> <C> <C> <C>
AIM AIM V.I. Dent A I M
Variable Demographic Advisors, Inc./
Insurance Trends Fund H.S. Dent
Funds Advisors, Inc.
Houston, TX
===========================================================================================================
Alger Alger American Fred Alger
American Growth Management, Inc.
Portfolio
---------------------------------------------------------------------------------------
New York, N.Y. Alger American Fred Alger
Leveraged Management, Inc.
AllCap Portfolio
---------------------------------------------------------------------------------------
Alger American Fred Alger
MidCap Management, Inc.
Growth
Portfolio
---------------------------------------------------------------------------------------
Alger American Fred Alger
Small Management, Inc.
Capitalization
Portfolio
===========================================================================================================
Fidelity VIP Fidelity Management X
Investments(R) Equity-Income & Research Company
Boston, Mass. Portfolio-
Service Class 2
---------------------------------------------------------------------------------------
VIP Growth Fidelity Management
Portfolio - & Research Company
Service Class 2
---------------------------------------------------------------------------------------
VIP Fidelity Management X
High Income & Research Company
Portfolio -
Service Class 2
---------------------------------------------------------------------------------------
VIP Fidelity Management X
Money Market & Research Company
Portfolio -
Initial Class
---------------------------------------------------------------------------------------
VIP II Fidelity Management
Contrafund(R) & Research Company
Portfolio -
Service Class 2
---------------------------------------------------------------------------------------
VIP II Fidelity Management X
Index 500 & Research Company
Portfolio -
Initial Class
---------------------------------------------------------------------------------------
Fidelity VIP II Fidelity Management X
Investments(R) Investment & Research Company
is a registered Grade Bond
trademark of FMR Portfolio -
Corp. Initial Class
===========================================================================================================
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
PRIMARY
FUND GROUP INTERNATIONAL BALANCED GROWTH AGGRESSIVE GROWTH OBJECTIVE(S) INVESTMENTS
=================== =============== ========== ======== ================== =========================== =============================
<S> <C> <C> <C> <C> <C> <C>
AIM X Long-term growth Securities of companies
Variable of capital that are likely to benefit
Insurance from changing demographic,
Funds economic and lifestyle trends
Houston, TX
====================================================================================================================================
Alger X Long-term capital Equity securities of
American appreciation large companies
----------------------------------------------------------------------------------------------------------------
New York, N.Y. X Long-term capital Equity securities of
appreciation companies of any size
----------------------------------------------------------------------------------------------------------------
X Long-term capital Equity securities
appreciation within the range of
S&P(R) MidCap 400
Index
----------------------------------------------------------------------------------------------------------------
X Long-term capital Equity securities
appreciation within the range of
Russell(R) 2000 Growth
or S&P(R) SmallCap 600
Indexes
====================================================================================================================================
Fidelity Reasonable income; Income-producing
Investments(R) also considers potential equity securities and
Boston, Mass. for capital appreciation debt obligations
----------------------------------------------------------------------------------------------------------------
X Capital appreciation Common stocks
----------------------------------------------------------------------------------------------------------------
High current income Income-producing
debt securities,
preferred stocks and
convertible securities,
with an emphasis
on lower-quality
debt securities
----------------------------------------------------------------------------------------------------------------
High level of U.S. dollar-
current income consistent denominated money
with preservation of market securities
capital and liquidity
----------------------------------------------------------------------------------------------------------------
X Capital appreciation Securities of
companies whose
value the adviser
believes is not
fully recognized
by the public
----------------------------------------------------------------------------------------------------------------
Total return that Common stocks of
corresponds to that of S&P 500
S&P 500 Index
----------------------------------------------------------------------------------------------------------------
Fidelity High current income Investment-grade
Investments(R) consistent with intermediate fixed
is a registered preservation of capital income securities
trademark of FMR
Corp.
====================================================================================================================================
</TABLE>
13
<PAGE>
<TABLE>
<CAPTION>
ADVISER/
FUND GROUP FUND SUBADVISER MONEY MARKET FIXED INCOME GROWTH & INCOME
================== ==================== =================== ============== ============== =================
<S> <C> <C> <C> <C> <C>
Janus Aspen Series Janus
Aggressive Capital
Denver, Co. Growth Portfolio - Corporation
Service Shares
----------------------------------------------------------------------------------------
Aspen Series Janus
Growth Portfolio - Capital
Service Shares Corporation
----------------------------------------------------------------------------------------
Aspen Series Janus
International Capital
Growth Portfolio - Corporation
Service Shares
----------------------------------------------------------------------------------------
Aspen Series Janus
Worldwide Capital
Growth Portfolio - Corporation
Service Shares
===========================================================================================================
Neuberger Advisers Neuberger Berman X
Berman Management Management Inc./
Trust Limited Neuberger Berman,
New York, N.Y. Maturity Bond LLC
Portfolio
----------------------------------------------------------------------------------------
Advisers Neuberger Berman
Management Management Inc./
Trust Partners Neuberger Berman,
Portfolio LLC
----------------------------------------------------------------------------------------
Advisers Neuberger Berman
Management Management Inc./
Trust Socially Neuberger Berman,
Responsive LLC
Portfolio
===========================================================================================================
OCC OCC Accumulation OpCap
Trust Equity Advisors
New York, N.Y. Portfolio
----------------------------------------------------------------------------------------
OCC Accumulation OpCap
Trust Global Advisors
Equity Portfolio
----------------------------------------------------------------------------------------
OCC Accumulation OpCap
Trust Managed Advisors
Portfolio
----------------------------------------------------------------------------------------
OCC Accumulation OpCap
Trust Small Advisors
Cap Portfolio
===========================================================================================================
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
PRIMARY
FUND GROUP INTERNATIONAL BALANCED GROWTH AGGRESSIVE GROWTH OBJECTIVE(S) INVESTMENTS
================== =============== ========== ======== ================== ======================== =========================
<S> <C> <C> <C> <C> <C> <C>
Janus X Long-term growth of Nondiversified portfolio
capital of common stocks
Denver, Co.
---------------------------------------------------------------------------------------------------------
X Long-term capital Diversified common
growth stocks
---------------------------------------------------------------------------------------------------------
X Long-term capital Foreign issuers of
growth common stocks
---------------------------------------------------------------------------------------------------------
X Long-term capital Foreign and domestic
growth common stocks
============================================================================================================================
Neuberger Highest available Short to
Berman current income intermediate term
consistent with investment-grade debt
New York, N.Y. liquidity and low securities
risk to principal;
total return is
a secondary goal
---------------------------------------------------------------------------------------------------------
X Growth of capital Common stocks of
medium- to large-
capitalization
companies
---------------------------------------------------------------------------------------------------------
X Long-term Common stocks of
growth of capital medium- to large-
by investing primarily capitalization
in companies that companies
meet financial and
social criteria
============================================================================================================================
OCC X Long-term capital Securities of
appreciation undervalued
New York, N.Y. companies
---------------------------------------------------------------------------------------------------------
X Long-term capital Global investments in
appreciation equity securities
---------------------------------------------------------------------------------------------------------
X Growth of capital Common stocks,
bonds and cash
equivalents
---------------------------------------------------------------------------------------------------------
X Capital appreciation Equity securities of
companies under
$1 billion
============================================================================================================================
</TABLE>
14
<PAGE>
<TABLE>
<CAPTION>
ADVISER/
FUND GROUP FUND SUBADVISER MONEY MARKET FIXED INCOME GROWTH & INCOME
==================== =================== ==================== ============== ============== =================
<S> <C> <C> <C> <C> <C>
Pilgrim Growth Pilgrim
Opportunities Investments, Inc.
Phoenix, AZ Portfolio
----------------------------------------------------------------------------------------
Growth + Value Pilgrim
Portfolio Investments, Inc./
Navellier Fund
Management, Inc.
----------------------------------------------------------------------------------------
High Yield Pilgrim X
Bond Portfolio Investments, Inc.
----------------------------------------------------------------------------------------
International Pilgrim
Value Portfolio Investments, Inc./
Brandes Investment
Partners, L.P.
----------------------------------------------------------------------------------------
MagnaCap Pilgrim X
Portfolio Investments, Inc.
----------------------------------------------------------------------------------------
MidCap Pilgrim
Opportunities Investments, Inc.
Portfolio
----------------------------------------------------------------------------------------
Research Pilgrim
Enhanced Investments, Inc./
Index Portfolio J.P. Morgan
Investment
Management Inc.
----------------------------------------------------------------------------------------
SmallCap Pilgrim
Opportunities Investments, Inc.
Portfolio
=============================================================================================================
Putnam Putnam Putnam Investment X
Investments, Inc. VT Growth and Management, Inc.
Income Fund -
Boston, Mass. Class IB Shares
----------------------------------------------------------------------------------------
Putnam Putnam Investment
VT New Management, Inc.
Opportunities
Fund - Class IB
Shares
----------------------------------------------------------------------------------------
Putnam Putnam Investment
VT Voyager Fund - Management, Inc.
Class IB Shares
=============================================================================================================
</TABLE>
[WIDE TABLE CONTINUED FROM ABOVE]
<TABLE>
<CAPTION>
PRIMARY
FUND GROUP INTERNATIONAL BALANCED GROWTH AGGRESSIVE GROWTH OBJECTIVE(S) INVESTMENTS
==================== =============== ========== ======== ================== ======================== =======================
<S> <C> <C> <C> <C> <C> <C>
Pilgrim X Long-term capital Common stocks of
growth large cap, mid cap
Phoenix, AZ or small cap
companies
-------------------------------------------------------------------------------------------------------
X Capital appreciation Equity securities
from investing in a
diversified portfolio
of equity securities
-------------------------------------------------------------------------------------------------------
High current yield and High-yield bonds
capital appreciation
-------------------------------------------------------------------------------------------------------
Long-term capital International equities
appreciation
-------------------------------------------------------------------------------------------------------
Capital growth Common stocks
-------------------------------------------------------------------------------------------------------
X Long-term capital Common stocks of
appreciation mid-sized
U.S. companies
-------------------------------------------------------------------------------------------------------
X Capital appreciation Common stocks
-------------------------------------------------------------------------------------------------------
X Long-term capital Common stocks
appreciation
============================================================================================================================
Putnam Capital growth & Value stocks
Investments, Inc. current income
Boston, Mass.
-------------------------------------------------------------------------------------------------------
X Long-term capital Growth stocks
appreciation
-------------------------------------------------------------------------------------------------------
X Capital appreciation Growth stocks
============================================================================================================================
</TABLE>
15
<PAGE>
More detailed information about the Investment Funds can be found in the
current prospectus and Statement of Additional Information for each Fund. These
prospectuses accompany this Prospectus in a book entitled "Variable Product
Investment Options." The Investment Fund prospectuses should be read carefully
before any allocation to, or transfers among, the Sub-Accounts.
THERE IS NO ASSURANCE THAT THE STATED OBJECTIVES AND POLICIES OF ANY OF THE
INVESTMENT FUNDS WILL BE ACHIEVED.
ReliaStar Life reserves the right, subject to compliance with the law, to
offer additional Investment Funds.
The Investment Funds are available to registered separate accounts of
ReliaStar Life and to insurance companies other than ReliaStar Life, offering
variable annuity contracts and variable life insurance policies. ReliaStar Life
currently does not foresee any disadvantages to Owners resulting from the
Investment Funds selling shares to fund products other than the Contracts.
However, there is a possibility that a material conflict may arise between
Owners whose Contract Values are allocated to the Variable Account and the
owners of variable life insurance policies and variable annuity contracts issued
by ReliaStar Life or by such other companies whose assets are allocated to one
or more other separate accounts investing in any one of the Investment Funds. In
the event of a material conflict, ReliaStar Life will take any necessary steps,
including removing the Variable Account from that Investment Fund, to resolve
the matter. The Board of Directors or Trustees of each Investment Fund will
monitor events in order to identify any material conflicts that possibly may
arise and determine what action, if any, should be taken in response to those
events or conflicts. See each individual Investment Fund prospectus for more
information.
REINVESTMENT
The Investment Funds have as a policy the distribution of income, dividends
and capital gains. However, under the Contracts there is an automatic
reinvestment of such distributions.
ADDITION, DELETION OR SUBSTITUTION OF INVESTMENT FUND SHARES
ReliaStar Life reserves the right, subject to applicable law and any
required regulatory approvals, to make additions to, deletions from, or
substitutions for the shares that are held in the Variable Account or that the
Variable Account may purchase:
* ReliaStar Life reserves the right to establish additional Sub-Accounts
of the Variable Account, each of which would invest in shares
corresponding to a new or another investment company portfolio or
delete Sub-Accounts. Any new Sub-Accounts may be made available to
existing Contract Owners on a basis to be determined by ReliaStar
Life.
* ReliaStar Life may, in its sole discretion, eliminate one or more
Sub-Accounts, or close such Sub-Accounts to new premium or transfers,
if marketing needs, tax or regulatory considerations or investment
conditions warrant.
* If the shares of a portfolio of an Investment Fund are no longer
available for investment or if in ReliaStar Life's judgment further
investment in any portfolio of an Investment Fund should become
inappropriate in view of the purposes of the Variable Account, or
because, in our sole discretion, for marketing, tax, regulatory
requirements or investment conditions, ReliaStar Life may redeem the
shares of that portfolio and substitute shares of another registered
open-end investment company.
In the event of any such substitution, deletion or change, we may make such
changes as may be necessary or appropriate to reflect such substitution,
deletion or change. If all or a portion of your investments are allocated to any
of the current funds that are being substituted for or deleted on the date such
action is announced, you may transfer the portion of the Accumulation Value
affected without payment of a transfer charge to available Sub-Accounts.
If deemed by us to be in the best interests of persons having voting rights
under the Policies, the Variable Account may be operated as a management company
under the Investment Company Act of 1940, it may be deregistered under that Act
in the event such registration is no longer required, or it may be combined with
our other separate accounts.
CHARGES MADE BY RELIASTAR LIFE
SURRENDER CHARGE (CONTINGENT DEFERRED SALES CHARGE)
No deduction for a sales charge is made from purchase payments. However, a
surrender charge (which may be deemed a contingent deferred sales charge) may be
assessed. This charge is intended to reimburse ReliaStar Life for expenses
relating to the sale of the Contracts, including commissions to sales personnel,
costs of sales material and other promotional activities and sales
administration costs.
16
<PAGE>
If part or all of a Contract's value is surrendered, or, except for
contracts issued in the State of Washington, if the Contract's Annuity
Commencement Date occurs within the first two years after the Contract is
issued, surrender charges may be assessed by ReliaStar Life.
COMPUTATION OF SURRENDER CHARGES -- For purposes of determining surrender
charges, surrenders shall first be taken from Old Purchase Payments until they
are exhausted, then from New Purchase Payments until they are exhausted, then
from Contract Earnings and any credits that have been applied. Credits are not
considered Purchase Payments or Contract Earnings.
* "New Purchase Payments" are those Contract purchase payments received
by ReliaStar Life during the Contract Year in which the surrender
occurs or in the eight immediately preceding Contract Years;
* "Old Purchase Payments" are those Contract purchase payments not
defined as New Purchase Payments; and
* "Contract Earnings" at any Valuation Date is the Contract Value less
the sum of New Purchase Payments, Old Purchase Payments, and credits.
TOTAL SURRENDERS; AMOUNT OF SURRENDER CHARGE -- The surrender charge for a
total surrender is determined by multiplying the amount of each New Purchase
Payment surrendered, that is not eligible for a free surrender, by the
applicable surrender charge percentage as set forth in the following table:
SURRENDER CHARGE PERCENTAGE TABLE
----------------------------------------------------
CONTRACT YEAR OF SURRENDER SURRENDER CHARGE AS A
MINUS CONTRACT YEAR OF PERCENTAGE OF EACH
PURCHASE PAYMENT PURCHASE PAYMENT
-------------------------- ---------------------
0-2 8%
3-4 7
5-6 6
7 4
8 2
9 and later 0
FREE SURRENDERS -- Surrenders taken from the following amounts ("Free
Surrenders") are not subject to a surrender charge during any Contract Year: (a)
any Old Purchase Payments not already surrendered; (b) 10% of all New Purchase
Payments that have been received by ReliaStar Life (with the exception of
Systematic Withdrawals, this does not apply to surrenders made during the first
Contract Year nor to any surrenders after the first surrender made in each
Contract Year thereafter); and (c) any Contract Earnings being surrendered.
PARTIAL SURRENDERS -- The amount of the partial surrender subject to a
surrender charge is determined by dividing (a) the portion of each New Purchase
Payment to be surrendered which is not eligible for a Free Surrender by (b) one
minus the applicable surrender charge percentage from the Surrender Charge
Percentage Table set forth above. The resulting amount for each New Purchase
Payment to be surrendered is then multiplied by the applicable surrender charge
percentage from the Surrender Charge Percentage Table shown above to arrive at
the amount of surrender charge to be assessed. The total of the amount
surrendered will be subject to the surrender charge. Partial surrenders are
taken first from the oldest New Purchase Payments.
If the surrender charge is less than the Contract Value that remains
immediately after surrender, it will be deducted proportionately from the
Sub-Accounts that make up such Contract Value. If the surrender charge is more
than such remaining Contract Value, the portion of the surrender charge that can
be deducted from such remaining Contract Value will be so deducted and the
balance will be deducted from the surrender payment. In computing surrenders,
any portion of a surrender charge that is deducted from the remaining Contract
Value will be deemed a part of the surrender.
ANNUAL CONTRACT CHARGE
Each year on the Contract Anniversary, ReliaStar Life deducts an Annual
Contract Charge of $30 from the Contract Value. ReliaStar Life will not increase
the Annual Contract Charge. In any Contract Year when a Contract is surrendered
for its full value on other than the Contract Anniversary, the Annual Contract
Charge will be deducted at the time of such surrender. If a fixed annuity
payment or a variable annuity payment is selected, then the Annual Contract
Charge will be assessed and deducted in equal installments from each annuity
payment. When more than one annuity is selected, then a separate Annual Contract
Charge will be assessed against each annuity.
17
<PAGE>
WAIVER OF CHARGES
WAIVER OF ANNUAL CONTRACT CHARGE -- ReliaStar Life reserves the right to
waive the Annual Contract Charge where the cumulative purchase payments, less
any cumulative partial surrenders, exceed $50,000. ReliaStar Life reserves the
right to reinstate the Annual Contract Charge on Contracts previously qualifying
for the waiver, if the cumulative purchase payments, less any cumulative partial
surrenders, equals or falls below $50,000 or if ReliaStar Life withdraws the
waiver of the Charge.
ReliaStar Life will not waive the Annual Contract Charges assessed and
deducted from annuity payments.
MORTALITY RISK PREMIUM
The variable annuity payments made to Annuitants will vary in accordance
with the investment performance of the Sub-Accounts selected by the Owner.
However, they will not be affected by the mortality experience (death rate) of
persons receiving annuity payments from the Variable Account. ReliaStar Life
assumes this "mortality risk" and has guaranteed the annuity rates incorporated
in the Contract, which cannot be changed.
To compensate ReliaStar Life for assuming this mortality risk and the
mortality risk that Beneficiaries of Annuitants dying before the Annuity
Commencement Date may receive amounts in excess of the then current Contract
Value (see "Death Benefit Before the Annuity Commencement Date"), ReliaStar Life
deducts a Mortality Risk Premium from the Variable Account Contract Value. The
deduction is made daily in an amount that is equal to an annual rate of 0.85% of
the daily Contract Values under the Variable Account.
ReliaStar Life may not change the rate charged for the Mortality Risk
Premium under any Contract.
EXPENSE RISK PREMIUM
ReliaStar Life will not increase charges for administrative expenses
regardless of its actual expenses. To compensate ReliaStar Life for assuming
this expense risk, ReliaStar Life deducts an Expense Risk Premium from the
Variable Account Contract Value. The deduction is made daily in an amount that
is equal to an annual rate of 0.40% of the daily Variable Account Contract
Values.
ReliaStar Life may not change the rate of the Expense Risk Premium under
any Contract.
ADMINISTRATION CHARGE
ReliaStar Life deducts a daily Administration Charge from the Variable
Account Contract Value in an amount equal to an annual rate of 0.15% of the
daily Contract Values under the Variable Account. This charge is deducted to
reimburse ReliaStar Life for the cost of providing administrative services under
the Contracts and the Variable Account. ReliaStar Life may not change the rate
of the Administration Charge under any Contract.
PREMIUM AND OTHER TAXES
Various states and other governmental entities levy a premium tax,
currently ranging up to 3.5%, on annuity contracts issued by insurance
companies. If the Owner of the Contract lives in a governmental jurisdiction
that levies such a tax, ReliaStar Life will pay the taxes when due and reserves
the right to deduct the amount of the tax either from purchase payments as they
are received or from the Contract Value at the Annuity Commencement Date
(immediately before the Contract Value is applied to an Annuity Form) as
permitted or required by applicable law.
Premium tax rates are subject to change from time to time by legislative
and other governmental action. The timing of tax levies also varies from one
taxing authority to another. Consequently, in many cases the purchaser of a
Contract will not be able to accurately determine the premium tax applicable to
the Contract. ReliaStar Life reserves the right to deduct charges for any other
tax or economic burden resulting from the application of the tax laws that it
determines to be applicable to the Contract.
GENERAL: REDUCTION OR WAIVER OF CHARGES OR MINIMUM PURCHASE PAYMENTS
Any of the charges under the Contract, as well as the minimum purchase
payment requirements set forth in this Prospectus, may be reduced due to special
circumstances that result in lower sales, administrative or mortality expenses.
For example, special circumstances may exist in connection with sales to
ReliaStar Life's policy and Contract Owners or those of affiliated insurance
companies, or sales to employees or clients of ReliaStar Life or ReliaStar
Life's affiliates. The amount of any reductions will reflect the reduced sales
effort and administrative costs resulting from, or the different mortality
18
<PAGE>
experience expected as a result of, the special circumstances. Reductions will
not be unfairly discriminatory against any person, including the affected policy
or Contract owners and owners of all other contracts funded by the Variable
Account.
EXPENSES OF THE INVESTMENT FUNDS
There are fees deducted from and expenses paid out of the assets of the
Investment Funds that are described in the accompanying prospectuses for the
Funds.
ADMINISTRATION OF THE CONTRACTS
ReliaStar Life assumes the responsibilities of performing certain
administrative functions relating to the Contracts and the Variable Account.
These functions include, among other things, maintaining the books and records
of the Variable Account and the Sub-Accounts, and maintaining records of the
name, address, taxpayer identification number, Contract number, type of Contract
issued to each Owner, Contract Value and other pertinent information necessary
to the administration and operation of the Contracts. These administrative
functions are located at: the ReliaStar Service Center, P.O. Box 5050, Minot,
North Dakota 58702-5050; Telephone 1-877-884-5050.
THE CONTRACTS
The Contracts are designed for sale as non-qualified contracts and also for
certain retirement plans which may be Qualified Plans. A single purchase payment
can be made for a deferred annuity, or subsequent purchase payments can be made
up to the maximum level of funding set forth below. The minimum amount ReliaStar
Life will accept as an initial purchase payment is $10,000. ReliaStar Life may
choose not to accept any subsequent purchase payment if it is less than $1,000.
ReliaStar Life may also choose not to accept any subsequent purchase payment if
the purchase payment together with the Contract Value at the next Valuation Date
exceeds $1,000,000. Any purchase payment not accepted by ReliaStar Life will be
refunded. ReliaStar Life reserves the right to accept smaller or larger initial
and subsequent purchase payments in connection with special circumstances.
If you are purchasing the Contract through a tax favored arrangement,
including IRAs and Roth IRAs, you should carefully consider the costs and
benefits of the Contract (including annuity income benefits) before purchasing
the Contract, since the tax favored arrangement itself provides for tax
sheltered growth.
ALLOCATION OF PURCHASE PAYMENTS
Purchase payments can be allocated by the Owner to up to 34 of the
available Sub-Accounts of the Variable Account selected and/or to the Fixed
Account. (See Appendix A.) The Fixed Account is not available to Contract Owners
in the States of Maryland, Oregon, South Carolina and Washington. Any purchase
payment or portion thereof for which no allocation election is made will be
returned to the Owner.
The initial purchase payment and credit will be allocated not later than
two business days after receipt, if the application and all information
necessary for processing the Contract are complete. ReliaStar Life may retain
purchase payments for up to five business days while attempting to complete an
incomplete application. If the application cannot be made complete within this
period, the applicant will be informed of the reasons for the delay and the
purchase payment will be returned immediately. Once the completed application is
received, the payment must be allocated within two business days. ReliaStar Life
will make inquiry to discover any missing information related to subsequent
payments. For any subsequent purchase payments, the payments and credits will be
credited at the Sub-Account Accumulation Unit Value next determined after
receipt of the purchase payment.
Upon allocation to Sub-Accounts of the Variable Account, a purchase payment
and credit are converted into Accumulation Units of the Sub-Account. The amount
of the purchase payment and credit allocated to a particular Sub-Account is
divided by the value of an Accumulation Unit for the Sub-Account to determine
the number of Accumulation Units of the Sub-Account to be held in the Variable
Account with respect to the Contract. The net investment results of each
Sub-Account vary primarily with the investment performance of the Investment
Fund whose shares are held in the Sub-Account.
For Contracts issued in states that require that we refund all purchase
payments upon the revocation of a Contract during the free look period, we will
credit the initial purchase payment and any purchase payments received prior to
the Initial Purchase Payment Transfer Date plus applicable credits to the
Fidelity VIP Money Market Sub-Account. In these states, if you cancel your
Contract during the free look period, the Company will return your purchase
payments or the Contract Value less any credits, whichever is larger.
19
<PAGE>
An Investment Fund may impose a minimum purchase requirement. If that
minimum purchase requirement exceeds the aggregate of all purchase payments
received by ReliaStar Life, less any redemption of Investment Fund shares
resulting from transfers or surrenders, on any given day that are to be applied
to a Sub-Account for the purchase of shares of such Investment Fund, such
purchase payments will be refunded.
CREDITS
A credit will be allocated to your Account Value at the same time that we
allocate each purchase payment. The amount of the credit is equal to 4% of each
purchase payment. This amount will be applied to each purchase payment received
for at least the first two Contract Years. After the second Contract Year, the
amount of the credit, and the determination of whether to pay a credit, will be
in the discretion of ReliaStar Life. Credits are allocated to the same
investment options based on the same percentages used to allocate your
contributions.
We will recover the amount of the credit if you exercise your "free look"
right to cancel the contract. In addition, if you start receiving annuity
payments within three years of making any purchase payment, we will recover the
amount of the credit that applies to that payment. Any credits payable on
purchase payments made within the 12 months before the Owner's date of death
will be recovered.
The credit that is applied to your Contract is paid for or recovered by
ReliaStar Life from a variety of sources. Initially, ReliaStar Life currently
pays reduced distribution fees in connection with sales of Contracts. In
addition, the payment of credits is also funded in part by ReliaStar Life out of
the various charges and expenses that are assessed in connection with a
Contract. These expenses may include the Surrender Charge, the Expense Risk
Premium, the Mortality Risk Premium, and the Administrative Risk Premium. If the
Contract did not apply a credit, the various charges and expenses assessed in
connection with a Contract might be lower. ReliaStar Life expects that it will
make a profit from the various charges and expenses assessed in connection with
a Contract, including those charges and expenses that are used in part to pay
the credit.
In certain circumstances, a Contract Owner could be worse off for
purchasing a contract with a credit feature. For example, if a person with an
annuity contract that no longer had a surrender charge exchanged his or her
contract for a new Contract with a credit feature, and then surrendered or
exchanged his or her new Contract within a specified period, the surrender
charge on the surrender or exchange of the new Contract could exceed the amount
of the credit.
Credits are not Purchase Payments for purposes of any discussion in this
Prospectus. Credits are also not considered to be your investment in the
contract for tax purposes.
SUB-ACCOUNT ACCUMULATION UNIT VALUE
Each Sub-Account Accumulation Unit was initially valued at $10 when the
first Investment Fund shares were purchased. Thereafter the value of each
Sub-Account Accumulation Unit will vary up or down according to a Net Investment
Factor, which is primarily based on the investment performance of the applicable
Investment Fund. Investment Fund shares in the Sub-Accounts will be valued at
their net asset value.
Dividend and capital gain distributions from an Investment Fund will be
automatically reinvested in additional shares of such Investment Fund and
allocated to the appropriate Sub-Account. The number of Sub-Account Accumulation
Units does not increase because of the additional shares, but the Accumulation
Unit value may increase.
NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges under
the Contract and the investment performance during a Valuation Period of the
Investment Fund whose shares are held in the particular Sub-Account. If the Net
Investment Factor is greater than one, the value of a Sub-Account Accumulation
Unit has increased. If the Net Investment Factor is less than one, the value of
a Sub-Account Accumulation Unit has decreased. The Net Investment Factor is
determined by dividing (1) by (2) then subtracting (3) from the result, where:
(1) is the net result of:
(a) the net asset value per share of the Investment Fund shares held in
the Sub-Account, determined at the end of the current Valuation
Period, plus
(b) the per share amount of any dividend or capital gain distributions
made on the Investment Fund shares held in the Sub-Account during the
current Valuation Period, plus or minus
(c) a per share charge or credit for any taxes reserved for which
ReliaStar Life determines to have resulted from the investment
operations of the Sub-Account and to be applicable to the Contract;
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(2) is the net result of:
(a) the net asset value per share of the Investment Fund shares held in
the Sub-Account, determined at the end of the last prior Valuation
Period, plus or minus
(b) a per share charge or credit for any taxes reserved for during the
last prior Valuation Period which ReliaStar Life determines to have
resulted from the investment operations of the Sub-Account and to be
applicable to the Contract; and
(3) is a factor representing the Mortality Risk Premium, the Expense Risk
Premium and the Administration Charge deducted from the Sub-Account which
factor is equal, on an annual basis, to 1.40% of the daily net asset value
of the Sub-Account.
DEATH BENEFIT BEFORE THE ANNUITY COMMENCEMENT DATE
If the Owner, including any joint Owner, dies before the Annuity
Commencement Date, the Beneficiary will be entitled to receive the Death
Benefit. For this purpose the Death Benefit will be:
(1) if any Owner (including the Annuitant) dies on or before the first day
of the month following the Owner's 85th birthday, the greater of (i)
the Contract Value on the Death Benefit Valuation Date, or (ii) the
Adjusted Purchase Payment Total, or (iii) the Reset Death Benefit;
(2) if any Owner (including the Annuitant) dies after the first day of the
month following the Owner's 85th birthday, the Contract Value on the
Death Benefit Valuation Date.
The initial Adjusted Purchase Payment Total is equal to the amount of the
first Purchase Payment we receive, increased by the amount of each subsequent
Purchase Payment. For each partial surrender, the Adjusted Purchase Payment
Total is reduced by multiplying the current Adjusted Purchase Payment Total by
the fraction A divided by B (A/B), where:
* A is the Contract Value immediately after the partial surrender, and
* B is the Contract Value immediately before the partial surrender.
The Reset Death Benefit is equal to the Contract Value on the Reset
Contract Anniversary, increased by the amount of each Purchase Payment made
after the Reset Contract Anniversary. For each partial surrender taken after the
Reset Contract Anniversary, the Reset Death Benefit is reduced by multiplying
the Reset Death Benefit by the fraction A divided by B (A/B), where:
* A is the Contract Value immediately after the partial surrender, and
* B is the Contract Value immediately before the partial surrender.
The Reset Contract Anniversary is the latest Specified Contract Anniversary
before the death of an Owner. The Specified Contract Anniversary is in the
Contract.
Because of the formula adjustments described in the preceding paragraphs,
caused by partial surrenders, in a period of declining values for Sub-Account
investments a partial surrender may decrease the Death Benefit by an amount that
is more than the amount of the partial surrender.
The Contract Value in (1) will be reduced by the amount of any credits
applied within 12 months of the death of any Owner.
If a single sum is requested, it will be paid within seven days after the
Death Benefit Valuation Date. If an Annuity Form is requested, it may be any
Annuity Form permitted by Section 72(s) of the Code and which ReliaStar Life is
willing to issue. An Annuity Form selection must be in writing and must be
received by ReliaStar Life within 60 days after the date of the Owner's death,
otherwise the Death Benefit as of the Death Benefit Valuation Date will be paid
in a single sum to the Beneficiary and the Contract will be canceled.
If the only Beneficiary is the Owner's surviving spouse, such spouse may
continue the Contract as the Owner, and then (1) select a single sum payment, or
(2) select any Annuity Form which does not exceed such spouse's life expectancy.
If the Beneficiary elects to receive annuity payments under an Annuity
Form, the amount and duration of payments may vary depending on the Annuity Form
selected and whether fixed and/or variable annuity payments are requested.
(See "Annuity Provisions.")
DEATH BENEFIT AFTER THE ANNUITY COMMENCEMENT DATE
If the Annuitant dies after the Annuity Commencement Date, the Death
Benefit, if any, shall be as stated in the Annuity Form in effect.
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SURRENDER (REDEMPTION)
If a written request is received by ReliaStar Life from the Owner before
the Annuity Commencement Date, all or part of the Contract Value will be paid to
the Owner after deducting any applicable surrender charge and taxes. (See
"Surrender Charge (Contingent Deferred Sales Charge).")
Partial surrenders must be at least $500. No partial surrender can cause
the Contract Value to fall below $1,000. If a total surrender occurs other than
on a Contract Anniversary the Annual Contract Charge will be deducted from the
Contract Value before the surrender payment is made. ReliaStar Life reserves the
right to limit the number of partial surrenders, and to assess a processing fee
not to exceed the lesser of 2% of the partial surrender amount or $25. No
processing fee will be charged in connection with total surrenders.
Surrenders must be consented to by each collateral assignee. ReliaStar Life
reserves the right to require that surrenders in excess of $50,000 be signature
guaranteed by a member firm of the New York, American, Boston, Midwest,
Philadelphia, or Pacific Stock Exchange, or by a commercial bank (not a savings
bank) which is a member of the Federal Deposit Insurance Corporation, or, in
certain cases, by a member firm of the National Association of Securities
Dealers, Inc. that has entered into an appropriate agreement with ReliaStar
Life.
ReliaStar Life may require that the Contract be returned before a surrender
takes place. A surrender will take place on the next Valuation Date after the
requirements for surrender are completed and payment will be made within seven
days after such Valuation Date. Unless the Owner requests a partial surrender to
be made from the Fixed Account or particular Sub-Accounts, a partial surrender
will be taken proportionately from the Fixed Account and all Sub-Accounts on a
basis that reflects their proportionate percentage of the Contract Value.
If the Contract Value after all charges is less than $1,000, ReliaStar Life
can cancel the Contract on any Contract Anniversary, or if such Contract
Anniversary is not a Valuation Date, on the next Valuation Date thereafter, by
paying to the Owner the Contract Value as of such Valuation Date.
Surrender payments may be taxable and in addition may be subject to a 10%
tax penalty if before age 59 1/2. Consideration should be given to the tax
implications of a surrender before making a surrender request, including a
surrender in connection with a Qualified Plan.
SYSTEMATIC WITHDRAWALS
Systematic Withdrawals, which are a specialized form of Partial Surrenders
(see "Surrender (Redemption)"), are offered for both Qualified Plan Contracts
and for Non-Qualified Contracts. To start Systematic Withdrawals, the Contract
Value must be at least $25,000. The Owner may elect to take Systematic
Withdrawals from Sub-Accounts by surrendering a specified dollar amount or
percentage of cumulative purchase payments on a monthly, quarterly, semi-annual
or annual basis. The minimum amount of any Systematic Withdrawal is $100.
Systematic Withdrawals can be taken from Variable Account Contract Value and/or
Fixed Account Contract Value, but are limited annually to 10% of total
cumulative purchase payments made under the Contract. A Surrender Charge will be
imposed on the amount of any Systematic Withdrawal, which is not a Free
Surrender. (See "Surrender Charge (Contingent Deferred Sales Charge).")
Systematic Withdrawals can be discontinued by the Owner if the Contract Value
falls below $10,000 or at any time by writing to ReliaStar Life's administrative
office in Minot, North Dakota.
ReliaStar Life reserves the right to modify or discontinue offering
Systematic Withdrawals; however, any such modification or discontinuation will
not affect any Systematic Withdrawal programs already commenced. While ReliaStar
Life does not currently charge a processing fee for Partial Surrenders under
this program, it reserves the right to charge a processing fee not to exceed the
lesser of 2% of the Systematic Withdrawal payment or $25.
Systematic Withdrawals may be subject to tax, including a penalty tax, and
you should consult with your tax advisor before requesting any Systematic
Withdrawal. (See "Taxation of Annuities.")
Contract Owners interested in participating in the Systematic Withdrawal
program can obtain a separate application form and full information about the
program and its restrictions from their registered representative.
TRANSFERS
Before the Annuity Commencement Date, the Owner can transfer amounts
between Sub-Accounts or from the Sub-Accounts to the Fixed Account. Subject to
certain restrictions, amounts can also be transferred from the Fixed Account to
the Sub-Accounts. Currently, these are our methods by which transfers may be
made: in writing, by telephone or fax, by Dollar Cost Averaging and by Portfolio
Rebalancing.
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WRITTEN TRANSFERS
BEFORE THE ANNUITY COMMENCEMENT DATE -- Before the Annuity Commencement
Date the Owner may request a transfer in writing, subject to any conditions or
charges the Investment Funds whose shares are involved may impose, of all or
part of a Sub-Account's value to other Sub-Accounts or to the Fixed Account. The
transfer will be made on the first Valuation Date after the request for such a
transfer is received by ReliaStar Life. Before the Annuity Commencement Date,
transfers may also be made from the Fixed Account to the Variable Account,
provided, that
* transfers may only be made during the period starting 30 days before
and ending 30 days after the Contract Anniversary, and only one
transfer may be made during each such period,
* no more than 50% of the Fixed Account Contract Value may be the
subject of any such transfer (unless the balance, after such transfer,
would be less than $1,000, in which case the full Fixed Account
Contract Value may be transferred), and
* such transfer must involve at least $500 (or the total Fixed Account
Contract Value, if less).
Currently, there is a $25 charge for each transfer in excess of 24 per
Contract Year, plus any charge that may be made by the Funds. For purposes of
this restriction, reallocations pursuant to the ReliaStar Life Dollar Cost
Averaging, Portfolio Rebalancing, and Systematic Withdrawal services currently
do not constitute transfers, and multiple transfers on a single day currently
constitute a single transfer. The Company reserves the right to charge a
transfer fee not to exceed $25 per transfer on any transfer and to limit the
number of transfers.
AFTER THE ANNUITY COMMENCEMENT DATE -- After the Annuity Commencement Date,
an Annuitant who has selected Variable Annuity Payments can request transfer of
Annuity Unit values in the same manner and subject to the same requirements as
for an Owner-transfer of Sub-Account Accumulation Unit values.
No transfers may be made to or from the Fixed Account after the Annuity
Commencement Date.
The conditions applicable to Written Transfers also apply to Telephone/Fax
Transfers, Dollar Cost Averaging Transfers, and Portfolio Rebalancing.
TELEPHONE/FAX INSTRUCTIONS -- An Owner is allowed to enter the following
types of instructions either by telephone or by fax if he or she completes a
telephone/fax instruction authorization form:
* transfers between funds,
* surrenders,
* changes of allocations among fund options,
* change of source funds for systematic withdrawals, and
* change of source funds for variable annuitization payouts.
If you complete the telephone/fax form, you thereby agree that ReliaStar
Life will not be liable for any loss, liability, cost or expense when it acts in
accordance with the telephone/fax instructions received. If a telephone/fax
transaction, is later determined not to have been made by you or was made
without your authorization, and a loss results, you bear the risk of this loss.
Any fax requests are considered telephone requests and are bound by the
conditions in the telephone/fax authorization form. Any fax request should
include your name, daytime telephone number, Contract number and the names of
the Sub-Accounts from which and to which money will be transferred or withdrawn
and the allocation percentage. ReliaStar Life will employ reasonable procedures
to confirm that instructions communicated by telephone are genuine. In the event
ReliaStar Life does not employ such procedures, it may be liable for any losses
due to unauthorized or fraudulent instructions. Such procedures may include,
among others, requiring forms of personal identification prior to acting upon
telephone instructions, providing written confirmation of such instructions
and/or tape recording telephone instructions.
DOLLAR COST AVERAGING TRANSFERS -- You can direct ReliaStar Life to
automatically transfer a fixed dollar amount or a specified percentage of
Sub-Account Value to any one or more other Sub-Accounts or to the Fixed Account.
No transfers from the Fixed Account are permitted under this service. The
minimum transfer amount is $100. In those states that require return of purchase
payments rather than Contract Value when a Contract is returned during the free
look period, this service is not available until the Initial Purchase Transfer
Date. Transfers may be made on a monthly, quarterly, semi-annual or annual
basis. This service is intended to allow you to utilize "Dollar Cost Averaging,"
a long-term investment method which provides for regular, level investments over
time. ReliaStar Life makes no guarantees that Dollar Cost Averaging will result
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in a profit or protect against loss. You can discontinue Dollar Cost Averaging
at any time by notifying ReliaStar Life in writing. Contract Owners interested
in Dollar Cost Averaging can obtain an application form and full information
concerning this service and its restrictions from their registered
representatives.
ReliaStar Life reserves the right to modify or discontinue offering Dollar
Cost Averaging. Any such modification or discontinuation would not affect Dollar
Cost Averaging transfer programs already commenced. Although ReliaStar Life
currently charges no fees for transfers made under the Dollar Cost Averaging
program, it reserves the right to charge a processing fee for Dollar Cost
Averaging transfers not to exceed $25 per transfer.
PORTFOLIO REBALANCING SERVICE -- You may request this service if your
Contract Value is at least $25,000. If you request this service, you direct us
to automatically make periodic transfers to maintain your specified percentage
allocation among Sub-Accounts of the Variable Account. You may also have your
allocation of future premium payments changed to be equal to this specified
percentage allocation. Transfers made under this service may be made on a
quarterly, semi-annual, or annual basis. This service is intended to maintain
the allocation you have selected consistent with your personal objectives. This
service can be discontinued if your Contract Value falls below $10,000.
You can discontinue Portfolio Rebalancing at any time by notifying
ReliaStar Life in writing. Contract Owners interested in Portfolio Rebalancing
can obtain an application form and full information concerning this service and
its restrictions from their registered representatives. ReliaStar Life reserves
the right to modify or discontinue offering Portfolio Rebalancing. Although
ReliaStar Life currently charges no fees for transfers made under the Portfolio
Rebalancing program, it reserves the right to charge a processing fee for
Portfolio Rebalancing transfers not to exceed $25 per transfer.
ASSIGNMENTS
You may make a request to change the Owner of this Contract by sending us
written notice. We reserve the right to deny a request to change the Owner,
unless we receive written proof, satisfactory to us, that each proposed Owner is
insurable.
If the Contract is issued pursuant to or in connection with a Qualified
Plan, it cannot be sold, transferred, pledged or assigned to any person or
entity other than ReliaStar Life. In other circumstances, an assignment of the
Contract is permitted, but only before the Annuity Commencement Date, by giving
ReliaStar Life the original or a certified copy of the assignment. ReliaStar
Life shall not be bound by any assignment until it is actually received by
ReliaStar Life and shall not be responsible for the validity of any assignment.
Any payments made or actions taken by ReliaStar Life before ReliaStar Life
actually receives any assignment shall not be affected by the assignment.
CONTRACT OWNER AND BENEFICIARIES
Unless someone else is named as the Owner in the application for the
Contract, the applicant is the Owner of the Contract and before the Annuity
Commencement Date may exercise all of the Owner's rights under the Contract. No
more than two (2) natural persons may be named as Owner.
The Owner may name a Beneficiary and a Successor Beneficiary. In the event
an Owner dies before the Annuity Commencement Date, the Beneficiary shall
receive a Death Benefit as provided in the Contract. In the event an Owner dies
on or after the Annuity Commencement Date, the Beneficiary, if the Annuity Form
in effect at the Owner's death so provides, may continue receiving payments, be
paid a lump sum, or be paid nothing. If the Beneficiary or Successor Beneficiary
is not living on the date payment is due or if no Beneficiary or Successor
Beneficiary has been named, the Owner's estate will receive the applicable
proceeds.
A person named as an Annuitant, a Beneficiary or a Successor Beneficiary
shall not be entitled to exercise any rights relating to the Contract or to
receive any payments or settlements under the Contract or any Annuity Form,
unless such person is living on the earlier of (a) the day due proof of death of
the Owner, the Annuitant or the Beneficiary, whichever is applicable, is
received by ReliaStar Life or (b) the tenth day after the death of the Owner,
the Annuitant or the Beneficiary, whichever is applicable.
Unless different arrangements have been made with ReliaStar Life by the
Owner, if more than one Beneficiary is entitled to payments from ReliaStar Life
the payments shall be in equal shares.
Before the Annuity Commencement Date, the Owner may change the Annuitant,
the Beneficiary or the Successor Beneficiary by giving ReliaStar Life written
notice of the change, but the change shall not be effective until actually
received by ReliaStar Life. Upon receipt by ReliaStar Life of a notice of
change, the change will be effective as of the date it was signed but shall not
affect any payments made or actions taken by ReliaStar Life before ReliaStar
Life received the notice, and ReliaStar Life shall not be responsible for the
validity of any change.
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CONTRACT INQUIRIES
Inquiries regarding a Contract may be made by writing to the ReliaStar Life
Insurance Company, ReliaStar Service Center, P.O. Box 5050, Minot, North Dakota
58702-5050 or by calling 1-877-884-5050.
ANNUITY PROVISIONS
ANNUITY COMMENCEMENT DATE
The Owner selects the Annuity Commencement Date, which must be the first
day of a month, when making application for the Contract. The date will be the
first day of the month following the Annuitant's 75th birthday unless an earlier
or later date has been selected by the Owner and, if the date is later, it has
been agreed to by ReliaStar Life. The earliest Annuity Commencement Date is the
issue date. However, if the Annuity Commencement Date selected by the Owner does
not occur on a Valuation Date at least 60 days after the date on which the
Contract was issued, ReliaStar Life reserves the right to adjust the Annuity
Commencement Date to the first Valuation Date after the Annuity Commencement
Date selected by the Owner which is at least 60 days after the Contract issue
date. If the Annuity Commencement Date occurs before the second Contract
Anniversary, ReliaStar Life will deduct Surrender Charges. (See "Surrender
Charge (Contingent Deferred Sales Charge).") The latest Annuity Commencement
Date is the later of the Annuitant's age 85 or 10 years after the Contract issue
date.
If the Annuity Commencement Date occurs within three years of any purchase
payment, the amount of any credit applied to that payment is deducted from the
amount of the Contract Value.
The Owner may change an Annuity Commencement Date selection by written
notice received by ReliaStar Life at least 30 days before both the Annuity
Commencement Date currently in effect and the New Annuity Commencement Date. The
new date selected must satisfy the requirements for an Annuity Commencement
Date.
ANNUITY FORM SELECTION
The Owner may select a Variable Annuity Form, a Fixed Annuity Form, or
both, with payments starting at the Annuity Commencement Date when making
application for the Contract. Thereafter, the Owner may change the Annuity
Form(s) by written notice received by ReliaStar Life before the Annuity
Commencement Date. If no election has been made before the Annuity Commencement
Date, ReliaStar Life will apply the Fixed Account Contract Value to provide a
Fixed Annuity and the Variable Account Contract Value to provide a Variable
Annuity, both in the form of a Life Annuity with Payments Guaranteed for 10
years (120 months), which shall be automatically effective.
ANNUITY FORMS
Variable Annuity Payments and Fixed Annuity Payments are available in any
of the following Annuity Forms:
LIFE ANNUITY -- An annuity payable on the first day of each month during
the Annuitant's life, starting with the first payment due according to the
Contract. Payments cease with the payment made on the first day of the month in
which the Annuitant's death occurs. IT WOULD BE POSSIBLE UNDER THIS ANNUITY FORM
FOR THE ANNUITANT TO RECEIVE ONLY ONE PAYMENT IF HE OR SHE DIED BEFORE THE
SECOND ANNUITY PAYMENT, ONLY TWO PAYMENTS IF HE OR SHE DIED BEFORE THE THIRD
ANNUITY PAYMENT, ETC.
LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 YEARS (120 MONTHS) OR 20 YEARS
(240 MONTHS) -- An annuity payable on the first day of each month during the
Annuitant's life, starting with the first payment due according to the Contract.
If the Annuitant receives all of the guaranteed payments, payments will continue
thereafter but cease with the payment made on the first day of the month in
which the Annuitant's death occurs. If all of the guaranteed payments have not
been made before the Annuitant's death, the unpaid installments of the
guaranteed payments will be continued to the Beneficiary.
JOINT AND FULL SURVIVOR ANNUITY -- An annuity payable on the first day of
each month during the Annuitant's life and the life of a named person (the
"Joint Annuitant"), starting with the first payment due according to the
Contract. Payments will continue while either the Annuitant or the Joint
Annuitant is living and cease with the payment made on the first day of the
month in which the death of the Annuitant or the Joint Annuitant, whichever
lives longer, occurs. THERE IS NO MINIMUM NUMBER OF PAYMENTS GUARANTEED UNDER
THIS ANNUITY FORM. PAYMENTS CEASE UPON THE DEATH OF THE LAST SURVIVOR OF THE
ANNUITANT AND THE JOINT ANNUITANT REGARDLESS OF THE NUMBER OF PAYMENTS RECEIVED.
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ReliaStar Life also has other annuity forms available and information about
them can be obtained by writing to ReliaStar Life.
FREQUENCY AND AMOUNT OF ANNUITY PAYMENTS
Annuity payments will be paid as monthly installments, unless the Annuitant
and ReliaStar Life agree to a different payment schedule. However, if the
Contract Value at the Annuity Commencement Date is less than $5,000, ReliaStar
Life may pay the Contract Value in a single sum and the Contract will be
canceled. Also if a monthly payment would be or become less than $50, ReliaStar
Life may change the frequency of payments to intervals that will result in
payments of at least $50 each. The minimum frequency and amount of annuity
payments or the minimum Contract Value required for annuity payments may vary by
state.
ANNUITY PAYMENTS
The amount of the first fixed annuity payment is determined by applying the
Contract Value to be used for a fixed annuity at the Annuity Commencement Date
to the annuity table in the Contract for the fixed Annuity Form selected. The
table shows the amount of the initial annuity payment for each $1,000 applied
and all subsequent payments shall be equal to this amount. The amount of the
first variable annuity payment is determined by applying the Contract Value to
be used for a variable annuity at the Annuity Commencement Date to the annuity
table in the Contract for the Annuity Form selected.
Subsequent variable annuity payments vary in amount in accordance with the
investment performance of the applicable Sub-Account. Assuming annuity payments
are based on the unit values of a single Sub-Account, the dollar amount of the
first annuity payment, determined as set forth above, is divided by the
Sub-Account Annuity Unit Value as of the Annuity Commencement Date to establish
the number of Variable Annuity Units representing each annuity payment. This
number of Variable Annuity Units remains fixed during the annuity payment
period. The dollar amount of the second and subsequent payments is not
predetermined and may change from month to month. The dollar amount of the
second and each subsequent payment is determined by multiplying the fixed number
of Variable Annuity Units by the Sub-Account Annuity Unit Value for the
Valuation Period with respect to which the payment is due. If the monthly
payment is based upon the Annuity Unit Values of more than one Sub-Account, the
foregoing procedure is repeated for each applicable Sub-Account and the sum of
the payments based on each Sub-Account is the amount of the monthly annuity
payment.
The annuity tables in the Contracts are based on the annuity mortality
table as defined in the Contract.
ReliaStar Life guarantees that the dollar amount of each variable annuity
payment after the first payment will not be affected by variations in expenses
(including those related to the Variable Account) or in mortality experience
from the mortality assumptions used to determine the first payment.
SUB-ACCOUNT ANNUITY UNIT VALUE
A Sub-Account's Variable Annuity Units will initially be valued at $10 each
at the time Accumulation Units with respect to the Sub-Account are first
converted into Variable Annuity Units. The Sub-Account Annuity Unit Value for
any subsequent Valuation Period is determined by multiplying the Sub-Account
Annuity Unit Value for the immediately preceding Valuation Period by the Net
Investment Factor for the Sub-Account for the Valuation Period for which the
Sub-Account Annuity Unit Value is being calculated, and multiplying the result
by an interest factor to neutralize the assumed investment rate of 4% per annum
built into the annuity tables contained in the Contracts. (See "Net Investment
Factor.")
ASSUMED INVESTMENT RATE
An assumed investment rate is built into the annuity tables contained in
the Contracts. If the actual net investment rate on the assets of the Variable
Account is the same as the assumed investment rate, variable annuity payments
will remain level. If the actual net investment rate exceeds the assumed
investment rate, variable annuity payments will increase and conversely, if it
is less than the assumed investment rate the payments will decrease.
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FEDERAL TAX STATUS
INTRODUCTION
THIS DISCUSSION IS GENERAL AND NOT INTENDED AS TAX ADVICE. The discussion
is not intended to address the tax consequences resulting from all of the
situations in which a person may be entitled to or may receive a distribution
under the Contract.
The Contract may be purchased on a non-qualified basis ("Non-Qualified
Contract") or purchased and used in connection with plans qualifying for
favorable tax treatment ("Qualified Contract"). The Qualified Contract is
designed for use by individuals whose premium payments are comprised solely of
proceeds from and/or contributions under retirement plans which are intended to
qualify as plans entitled to special income tax treatment under Section 408 or
408A of the Internal Revenue Code (the "Code").
The ultimate effect of Federal income taxes on the amounts held under a
Contract, or annuity payments, and on the economic benefit to the Owner, the
Annuitant, or the Beneficiary depends on the age and the tax and employment
status of the individual concerned, the type of retirement plan, and on
ReliaStar Life's tax status. In addition, certain requirements must be satisfied
in purchasing a Qualified Contract with proceeds from a tax-qualified plan and
receiving distributions from a Qualified Contract in order to continue receiving
favorable tax treatment. Therefore, purchasers of Contracts should seek
competent legal and tax advice regarding the suitability of a Contract for their
situation, the applicable requirements, and the tax treatment of the rights and
benefits of a Contract.
This discussion is based on ReliaStar Life's understanding of Federal
Income Tax Laws as currently interpreted. No representation is made regarding
the likelihood of the continuation of the present Federal Income Tax Laws or the
current interpretations by the Internal Revenue Service ("IRS"). No attempt is
made to consider any applicable state or other tax laws.
The following discussion assumes that Qualified Contracts are purchased
with proceeds from and/or contributions under retirement plans that qualify for
the intended special Federal income tax treatment.
TAX STATUS OF THE CONTRACT
DIVERSIFICATION REQUIREMENTS
Section 817(h) of the Code provides that separate account investments
underlying a contract must be "adequately diversified" in accordance with
Treasury regulations in order for the contract to qualify as an annuity contract
under Section 72 of the Code. The Variable Account, through each of the
Investment Funds, intends to comply with the diversification requirements
prescribed in regulations under Section 817(h) of the Code, which affect how the
assets in the various Sub-Accounts may be invested. Although ReliaStar Life does
not have control over the Investment Funds in which the Variable Account
invests, ReliaStar Life expects that each Investment Fund in which the Variable
Account owns shares will meet the diversification requirements and that the
Contract will be treated as an annuity contract under the Code.
The Treasury has also announced that the diversification regulations do not
provide guidance concerning the extent to which Owners may direct their
investments to particular Sub-Accounts of a variable account or how concentrated
the investments of the Investment Funds underlying a variable account may be.
The number of underlying investment options available under a variable product
may also be relevant in determining whether the product qualifies for the
desired tax treatment. It is possible that if additional rules, regulations or
guidance in this regard are issued, the Contract may need to be modified to
comply with such additional rules or guidance. For these reasons, ReliaStar Life
reserves the right to modify the Contract as necessary to attempt to prevent the
Owner from being considered the owner of the assets of the Investment Funds or
otherwise to qualify the Contract for favorable tax treatment.
REQUIRED DISTRIBUTIONS
NON-QUALIFIED CONTRACTS -- In order to be treated as an annuity contract
for Federal income tax purposes, Section 72(s) of the Code requires any
Non-Qualified Contract to provide that: (a) if any Owner dies on or after the
Annuity Commencement Date but prior to the time the entire interest in the
Contract has been distributed, the remaining portion of such interest will be
distributed at least as rapidly as under the method of distribution being used
as of the date of that Owner's death; and (b) if any Owner dies prior to the
Annuity Commencement Date, the entire interest in the Contract will be
distributed within five years after the date of the Owner's death. These
requirements will be considered satisfied as to any portion of the Owner's
interest which is payable to or for the benefit of a "designated Beneficiary"
and which is distributed over the life of such Beneficiary or over a period not
extending beyond the life expectancy of that Beneficiary, provided that such
distributions begin within one year of that Owner's death. The Owner's
"designated Beneficiary" is the
27
<PAGE>
person designated by such owner as a Beneficiary and to whom ownership of the
Contract passes by reason of death and must be a natural person. However, if the
Owner's "designated Beneficiary" is the surviving spouse of the Owner, the
Contract may be continued with the surviving spouse as the new Owner. If the
Owner is not an individual, any change in the primary Annuitant is treated as a
change of Owner for tax purposes.
The Non-Qualified Contracts contain provisions which are intended to comply
with the requirements of Section 72(s) of the Code, although no regulations
interpreting these requirements have yet been issued. ReliaStar Life intends to
review such provisions and modify them if necessary to assure that they comply
with the requirements of Code Section 72(s) when clarified by regulation or
otherwise. Other rules may apply to Qualified Contracts.
TAXATION OF ANNUITIES
IN GENERAL
Section 72 of the Code governs taxation of annuities in general. ReliaStar
Life believes that an Owner who is a natural person generally is not taxed on
increases in the value of a Contract until distribution occurs by withdrawing
all or part of the Contract Value (e.g., partial surrenders and complete
surrenders) or as annuity payments under the Annuity Form selected. For this
purpose, the assignment, pledge, or agreement to assign or pledge any portion of
the Contract Value (and in the case of a Qualified Contract, any portion of an
interest in the qualified plan) generally will be treated as a distribution. The
taxable portion of a distribution (in the form of a single sum payment or
annuity) is taxable as ordinary income.
The Owner of any annuity contract who is not a natural person generally
must include in income any increase in the excess of the net surrender value
over the "investment in the contract" during the taxable year. ReliaStar Life
restricts ownership of Non-Qualified Contracts to no more than two natural
persons.
The following discussion generally applies to Contracts owned by natural
persons.
SURRENDERS
In the case of a full surrender under a Qualified or Non-Qualified
Contract, the amount received generally will be taxable only to the extent it
exceeds the "investment in the contract." The "investment in the contract"
generally equals the portion, if any, of any premium payments paid by or on
behalf of any individual under a Contract which was not excluded from the
individual's gross income.
NON-QUALIFIED CONTRACTS -- In the case of a surrender from a Non-Qualified
Contract before the Annuity Commencement Date, under Code Section 72(e) amounts
received are generally first treated as taxable income to the extent that the
Contract Value exceeds the "investment in the contract" at that time. Any
additional amount surrendered is not taxable.
QUALIFIED CONTRACTS -- In the case of a surrender from a Qualified
Contract, under Section 72(e) of the Code a ratable portion of the amount
received is taxable, generally based on the ratio of the "investment in the
contract" to the participant's total accrued benefit or balance under the
retirement plan. For Qualified Contracts the "investment in the contract" can be
zero. Special tax rules may be available for certain distributions from
Qualified Contracts.
A Federal penalty tax may apply to certain surrenders. (See "Penalty Tax
on Certain Distributions".)
ANNUITY PAYMENTS
Although tax consequences may vary depending on the Annuity Form selected
under the Contract, in general, only the portion of the Annuity Payment that
represents the amount by which the Contract Value exceeds the investment in the
Contract will be taxed. For variable annuity payments, the taxable portion is
generally determined by an equation that establishes a specific dollar amount of
each payment that is not taxed. The dollar amount is determined by dividing the
investment in the contract by the total number of expected periodic payments.
However, the entire distribution will be taxable once the recipient has
recovered the amount of his or her investment in the contract. For fixed annuity
payments, in general, there is no tax on the portion of each payment which
represents the same ratio that the investment in the contract bears to the total
expected value of the annuity payments for the term of the payments; however,
the remainder of each annuity payment is taxable until the recovery of the
investment in the Contract, and thereafter the full amount or each annuity
payment is taxable.
TAXATION OF DEATH BENEFIT PROCEEDS
Amounts may be distributed from a Contract because of the death of an Owner
or an Annuitant. Generally, such amounts are includible in the income of the
recipient as follows: (i) if distributed in a lump sum, they are taxed in the
same manner as a full surrender of the contract; or (ii) if distributed under a
payment option, they are taxed in the same way as annuity payments.
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PENALTY TAX ON CERTAIN DISTRIBUTIONS
In the case of a distribution pursuant to a Non-Qualified Contract, a
Federal penalty equal to 10% of the amount treated as taxable income may be
imposed. In general, however, there is no penalty on distributions:
* made on or after the taxpayer reaches age 59 1/2;
* made on or after the death of the holder (a holder is considered an
Owner) (or if the holder is not an individual, the death of the
primary annuitant);
* attributable to the taxpayer's becoming disabled;
* a part of a series of substantially equal periodic payments (not less
frequently than annually) for the life (or life expectancy) of the
taxpayer or the joint lives (or joint life expectancies) of the
taxpayer and his or her designated beneficiary;
* made under an annuity contract that is purchased with a single premium
when the annuity starting date is no later than a year from purchase
of the annuity and substantially equal periodic payments are made, not
less frequently than annually, during the annuity period; and
* made under certain annuities issued in connection with structured
settlement agreements.
Other tax penalties may apply to certain distributions under a Qualified
Contract, as well as to certain contributions to, and other circumstances
applicable to the Qualified Plan of which the Qualified Contract is part.
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative changes is uncertain, there is
always the possibility that the tax treatment of the Policy could change by
legislation or other means (such as IRS regulations, revenue rulings, judicial
decisions, etc.). Moreover, it is also possible that any change could be
retroactive (that is, effective prior to the date of the change). You should
consult a tax adviser with respect to legislative developments and their effect
on the Policy.
TRANSFERS, ASSIGNMENTS OR EXCHANGES OF A CONTRACT
A transfer of ownership or assignment of a Contract, the designation of an
Annuitant, Payee or other Beneficiary who is not also the Owner, or the exchange
of a Contract may result in certain tax consequences to the Owner that are not
discussed herein. An Owner contemplating any such transfer, assignment, or
exchange of a Contract should contact a competent tax adviser with respect to
the potential tax effects of such a transaction.
WITHHOLDING
Pension and annuity distributions generally are subject to withholding for
the recipient's Federal income tax liability at rates that vary according to the
type of distribution and the recipient's tax status. Recipients, however,
generally are provided the opportunity to elect not to have tax withheld from
distributions.
MULTIPLE CONTRACTS
Section 72(e)(11) of the Code treats non-qualified deferred annuity
contracts issued by ReliaStar Life (or its affiliates) to the same Owner during
any calendar year as one annuity contract for purposes of determining the amount
includible in gross income under Code Section 72(e). The effects of this rule
are not yet clear; however, it could affect the time when income is taxable and
the amount that might be subject to the 10% penalty tax described above. In
addition, the Treasury Department has specific authority to issue regulations
that prevent the avoidance of Section 72(e) through the serial purchase of
annuity contracts or otherwise. There may also be other situations in which the
Treasury may conclude that it would be appropriate to aggregate two or more
annuity contracts purchased by the same Owner. Accordingly, an Owner should
consult a competent tax adviser before purchasing more than one annuity
contract.
TAXATION OF QUALIFIED PLANS
The Contracts are designed for use with several types of Qualified Plans.
The tax rules applicable to participants in these Qualified Plans vary according
to the type of plan and the terms of the plan itself. Favorable tax treatment
may be available for certain types of contributions and distributions. Adverse
tax consequences can result from contributions in excess of specified limits;
distributions prior to age 59 1/2 (subject to certain exceptions); distributions
that do not conform to specified commencement and minimum distribution rules;
aggregate distributions in excess of a specified annual amount;
29
<PAGE>
and in other specified circumstances. Therefore, no attempt is made to provide
more than general information about the use of the Contracts with the various
types of Qualified Plans. Contract Owners, the Annuitants, and Beneficiaries are
cautioned that the rights of any person to any benefits under these Qualified
Plans will be subject to the terms and conditions of the plans themselves,
regardless of the terms and conditions of the Contracts issued in connection
with the plans. ReliaStar Life is not bound by the terms and conditions of such
plans to the extent such terms contradict the Contract, unless ReliaStar Life
consents. Brief descriptions follow of the various types of Qualified Plans in
connection with a Contract.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 and 408A of the Code permits eligible individuals to contribute
to an individual retirement program known as an "Individual Retirement Annuity"
or "IRA". All IRAs are subject to limits on the amount that may be contributed,
the persons who are eligible, and on the time when distributions may commence.
TRADITIONAL IRAs -- Section 408 of the Code governs "traditional" IRAs.
Subject to certain income limits, contributions to a traditional IRA may be tax
deductible. Distributions from a traditional IRA, if attributable to deductible
contributions, are generally subject to income tax. Distributions must begin in
the year the Contract owner reaches age 70 1/2 for the traditional IRA, but not
for the Roth IRA (see below). Distributions from certain other types of
qualified retirement plans may be "rolled over" on a tax-deferred basis into a
traditional IRA.
ROTH IRAs -- Section 408A of the Code permits individuals to contribute to
a special type of IRA called a Roth IRA. The IRA must be designated as a "Roth
IRA" at the time it is established, in accordance with IRS rules. Contributions
to a Roth IRA are not deductible. If certain conditions are met, qualified
distributions from a Roth IRA are tax free. Subject to special limitations, a
distribution from a traditional IRA or another Roth IRA may be rolled over to a
Roth IRA.
Sales of a Contract for use with traditional or Roth IRAs may be subject to
special requirements of the IRS. The IRS has not reviewed the contract for
qualification as an IRA, and has not addressed in a ruling of general
applicability whether a death benefit provision such as the provision in the
Contract comports with IRS qualification requirements.
POSSIBLE CHARGE FOR RELIASTAR'S TAXES
At the present time, ReliaStar Life makes no charge to the Sub-Accounts for
any Federal, state, or local taxes that ReliaStar Life incurs which may be
attributable to such Sub-Accounts or to the Contracts. ReliaStar Life, however,
reserves the right in the future to make a charge for any such tax laws that it
determines to be properly attributable to the Sub-Accounts or the Contracts.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the Federal tax consequences
under these Contracts are not exhaustive, and special rules are provided with
respect to other tax situations not discussed in this Prospectus. Further, the
Federal income tax consequences discussed herein reflect ReliaStar Life's
understanding of current law and the law may change. Federal estate and state
and local estate, inheritance, and other tax consequences of ownership or
receipt of distributions under a Contract depend on the individual circumstances
of each Owner or recipient of the distribution. A competent tax adviser should
be consulted for further information.
VOTING OF FUND SHARES
As long as the Variable Account is registered as a unit investment trust
under the Investment Company Act of 1940 and the assets of the Variable Account
are allocated to Sub-Accounts that are invested in Investment Fund shares, the
Investment Fund shares held in the Sub-Accounts will be voted by ReliaStar Life
in accordance with instructions received from the person having voting interests
under the Contracts as described below. If ReliaStar Life determines pursuant to
applicable law or regulation that Investment Fund shares held in the
Sub-Accounts and attributable to the Contracts need not be voted pursuant to
instructions received from persons otherwise having the voting interests, then
ReliaStar Life may vote such Investment Fund shares held in the Sub-Accounts in
its own right.
Before the Annuity Commencement Date, the Owner shall have the voting
interest with respect to the Investment Fund shares attributable to the
Contract. On and after the Annuity Commencement Date, the person then entitled
to receive annuity payments shall have the voting interest with respect to the
Investment Fund shares. Such voting interest will generally decrease during the
annuity payout period.
Any Investment Fund shares held in the Variable Account for which we do not
receive timely voting instructions, or which are not attributable to Contract
Owners, will be voted by us in proportion to the instructions received from all
Contract
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<PAGE>
Owners having a voting interest in the Investment Fund. Any Investment Fund
shares held by us or any of our affiliates in general accounts will, for voting
purposes, be allocated to all separate accounts having voting interests in the
Investment Fund in proportion to each account's voting interest in the
respective Investment Fund and will be voted in the same manner as are the
respective account's vote.
All Investment Fund proxy material will be sent to persons having voting
interests together with appropriate forms which may be used to give voting
instructions. Persons entitled to voting interests and the number of votes which
they may cast shall be determined as of a record date, to be selected by
ReliaStar Life, not more than 90 days before the meeting of the applicable Fund.
Persons having voting interests under the Contracts as described above will
not, as a result thereof, have voting interests with respect to meetings of the
stockholders of ReliaStar Life.
DISTRIBUTION OF THE CONTRACTS
The Contracts will be distributed by the General Distributor, Washington
Square Securities, Inc., 20 Washington Avenue South, Minneapolis, Minnesota
55401, which is an affiliate of ReliaStar Life. The Contracts will be sold by
licensed insurance agents in those states where the Contracts can be lawfully
sold. Such agents will be registered representatives of broker-dealers
registered under the Securities Exchange Act of 1934 who are members of the
National Association of Securities Dealers, Inc. Commissions and other
distribution compensation will be paid by ReliaStar Life. Generally such
payments will not exceed 8.0% of the purchase payments. In some cases a trail
commission based on the Contract Value may also be paid.
REVOCATION
The Contract Owner may revoke the contract at any time between the date of
Application and the date 10 days after receipt of the Contract and receive a
refund of the Contract Value unless otherwise required by state and/or federal
law. All Individual Retirement Annuity refunds will be for a return of purchase
payments. In order to revoke the Contract, it must be mailed or delivered to
ReliaStar Life's Contract Administrator at the mailing address shown below or
the agent through whom it was purchased. Mailing or delivery must occur on or
before 10 days after receipt of the Contract for revocation to be effective. In
order to revoke the Contract written notice must be mailed or delivered to:
ReliaStar Life Insurance Company
ReliaStar Service Center
P.O. Box 5050
Minot, ND 58702-5050
The liability of the Variable Account under this provision is limited to
the Contract Value in each Sub-Account on the date of revocation. Any additional
amounts refunded to the Contract Owner will be paid by ReliaStar Life.
REPORTS TO OWNERS
ReliaStar Life will mail to the Contract Owner, at the last known address
of record at the administrative office of ReliaStar Life, at least annually
after the first Contract Year, a report containing such information as may be
required by any applicable law or regulation and a statement showing the
Contract Value.
To reduce expenses, only one copy of most financial reports and
prospectuses, including reports and prospectuses for the Investment Funds, will
be mailed to your household, even if you or other persons in your household have
more than one contract issued by ReliaStar Life or an affiliate. Call
1-877-884-5050 if you need additional copies of financial reports, prospectuses,
or annual and semi-annual reports, or if you would like to receive one copy for
each contract in all future mailings.
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LEGAL PROCEEDINGS
The Variable Account is not a party to any pending legal proceedings.
The Company is a defendant in various lawsuits in connection with the
normal conduct of its insurance operations. Some of the claims seek to be
granted class action status and many of the claims seek both compensatory and
punitive damages. In the opinion of management, the ultimate resolution of such
litigation will not have a material adverse impact to the financial position of
the Company. It should be noted, however, that a number of financial services
companies have been subjected to significant awards in connection with punitive
damages claims and the Company can make no assurances that it will not be
subjected to such an award. The defense of the putative class actions pending
against the Company may require the commitment of substantial internal resources
and the retention of legal counsel and expert advisors.
The Company is a defendant in litigation in New York State court regarding
an alleged reinsurance contract. The plaintiff alleges damages in excess of $100
million. The Company believes that no contract exists and the suit is without
merit. The Company filed a motion for summary judgment on February 18, 2000. If
the court does not grant the Company's motion, the case may go to trial later
this year.
EXPERTS
The financial statements of ReliaStar Select Variable Account as of
December 31, 1999 and for each of the two years in the period then ended are
incorporated by reference in the Statement of Additional Information. The
financial statements of ReliaStar Life Insurance Company as of and for the years
ended December 31, 1999 and 1998 are incorporated by reference in the Statement
of Additional Information. The financial statements for the Variable Account and
ReliaStar Life have been audited by Deloitte & Touche LLP, independent auditors,
as stated in their reports which are incorporated by reference and have been so
incorporated by reference in reliance upon the reports of such firm given upon
their authority as experts in accounting and auditing.
FURTHER INFORMATION
A Registration Statement under the Securities Act of 1933 has been filed
with the Securities and Exchange Commission, with respect to the Contracts
described herein. The Prospectus does not contain all of the information set
forth in the Registration Statement and exhibits thereto, to which reference is
hereby made for further information concerning the Variable Account, ReliaStar
Life and the Contracts. The information so omitted may be obtained from the
Commission's principal office in Washington, D.C., upon payment of the fee
prescribed by the Commission, or examined there without charge. Statements
contained in this Prospectus as to the provisions of the Contracts and other
legal documents are summaries, and reference is made to the documents as filed
with the Commission for a complete statement of the provisions thereof.
INFORMATION ABOUT THE FIXED ACCOUNT CAN BE FOUND IN APPENDIX A, AND
CONDENSED FINANCIAL INFORMATION CAN BE FOUND IN APPENDIX B.
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STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
Introduction .......................................................... SAI-2
Administration of the Contracts ....................................... SAI-2
Custody of Assets ..................................................... SAI-2
Experts ............................................................... SAI-2
Distribution of the Contracts ......................................... SAI-2
Calculation of Yield and Return ....................................... SAI-2
Financial Statements .................................................. SAI-11
- --------------------------------------------------------------------------------
If you would like to receive a copy of the Statement of Additional Information
for the ReliaStar Select Variable Account Advantage SE Variable Annuity, please
call 1-877-884-5050 or return this request to:
RELIASTAR LIFE INSURANCE COMPANY
RELIASTAR SERVICE CENTER
P.O. BOX 5050
MINOT, ND 58702-5050
Your name
----------------------------------------------------------------------
Address
------------------------------------------------------------------------
City State Zip
----------------------------- --------------------- -------------
Please send me a copy of the ReliaStar Select Variable Account Advantage SE
Variable Annuity Statement of Additional Information.
- --------------------------------------------------------------------------------
NO PERSON IS AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS OTHER THAN THOSE CONTAINED IN THIS PROSPECTUS OR ACCOMPANYING
INVESTMENT FUND PROSPECTUSES AND, IF GIVEN OR MADE, SUCH INFORMATION OR
REPRESENTATIONS MUST NOT BE RELIED UPON AS HAVING BEEN AUTHORIZED. THIS
PROSPECTUS DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO
BUY ANY SECURITIES OTHER THAN THE REGISTERED SECURITIES TO WHICH IT RELATES.
THIS PROSPECTUS DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY
CIRCUMSTANCES IN WHICH SUCH OFFER OR SOLICITATION WOULD BE UNLAWFUL.
33
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<PAGE>
APPENDIX A
THE FIXED ACCOUNT
CONTRIBUTIONS UNDER THE FIXED PORTION OF THE CONTRACT AND TRANSFERS TO THE
FIXED PORTION BECOME PART OF THE GENERAL ACCOUNT OF RELIASTAR LIFE (THE "FIXED
ACCOUNT"), WHICH SUPPORTS INSURANCE AND ANNUITY OBLIGATIONS. INTERESTS IN THE
FIXED ACCOUNT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 ("1933
ACT") NOR IS THE FIXED ACCOUNT REGISTERED AS AN INVESTMENT COMPANY UNDER THE
INVESTMENT COMPANY ACT OF 1940 ("1940 ACT"). ACCORDINGLY, NEITHER THE FIXED
ACCOUNT NOR ANY INTEREST THEREIN ARE GENERALLY SUBJECT TO THE PROVISIONS OF THE
1933 OR 1940 ACT AND RELIASTAR LIFE HAS BEEN ADVISED THAT THE STAFF OF THE
SECURITIES AND EXCHANGE COMMISSION HAS NOT REVIEWED THE DISCLOSURES IN THIS
PROSPECTUS WHICH RELATE TO THE FIXED PORTION OF THE CONTRACT. DISCLOSURES
REGARDING THE FIXED PORTION OF THE ANNUITY CONTRACT AND THE FIXED ACCOUNT,
HOWEVER, MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE PROVISIONS OF THE
FEDERAL SECURITIES LAWS RELATING TO THE ACCURACY AND COMPLETENESS OF STATEMENTS
MADE IN PROSPECTUSES.
The Fixed Account is made up of all of the general assets of ReliaStar Life
other than those allocated to any separate account. Purchase payments will be
allocated to the Fixed Account as elected by the Owner at the time of purchase
or as subsequently changed. ReliaStar Life will invest the assets of the Fixed
Account in those assets chosen by ReliaStar Life and allowed by applicable law.
ReliaStar Life guarantees that it will credit interest at a rate of not
less than 3% per year, compounded annually, to amounts allocated to the Fixed
Account under the Contract. ReliaStar Life may credit interest at a rate in
excess of 3% per year; however, ReliaStar Life is not obligated to do so. ANY
INTEREST CREDITED TO AMOUNTS ALLOCATED TO THE FIXED ACCOUNT IN EXCESS OF 3% PER
YEAR WILL BE DETERMINED IN THE SOLE DISCRETION OF RELIASTAR LIFE. THE OWNER
ASSUMES THE RISK THAT INTEREST CREDITED TO FIXED ACCOUNT ALLOCATIONS MAY NOT
EXCEED THE MINIMUM GUARANTEE OF 3% FOR ANY GIVEN YEAR.
A-1
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<PAGE>
APPENDIX B
PERFORMANCE INFORMATION AND CONDENSED FINANCIAL INFORMATION
PERFORMANCE INFORMATION
From time to time, ReliaStar Life may advertise or include in sales
literature yields, effective yields, and total returns for the available
Sub-Accounts. THESE FIGURES ARE BASED ON HISTORICAL EARNINGS AND DO NOT INDICATE
OR PROJECT FUTURE PERFORMANCE.
Yields, effective yields and total returns for the Sub-Accounts are based
on the investment performance of the corresponding portfolios of the Investment
Funds. The performance in part reflects the Investment Funds' expenses. See the
prospectuses for the Investment Funds.
The yield of the Sub-Account investing in Fidelity's VIP Money Market
Portfolio refers to the annualized income generated by an investment in the
Sub-Account over a specified seven-day period. The yield is calculated by
assuming that the income generated for that seven-day period is generated each
seven-day period over a 52-week period and is shown as a percentage of the
investment. The effective yield is calculated similarly but, when annualized,
the income earned by an investment in the Sub-Account is assumed to be
reinvested. The effective yield will be slightly higher than the yield because
of the compounding effect of this assumed reinvestment.
The yield of a Sub-Account (except the Money Market Sub-Account investing
in Fidelity's VIP Money Market Portfolio) refers to the annualized income
generated by an investment in the Sub-Account over a specified 30-day or
one-month period. The yield is calculated by assuming that the income generated
by the investment during that 30-day or one-month period is generated each
period over a 12-month period and is shown as a percentage of the investment.
Total returns generally will be presented in "standardized" format. This
means, among other things, that performance will be shown from the date of
inception of the Variable Account, or, if later, the inception date of the
applicable Investment Fund. In some instances, "non-standardized" returns may be
shown from prior to the inception date of the Variable Account. Non-standardized
information will be accompanied by standardized information.
Performance information may reflect the addition of a 4% credit on purchase
payments. The impact of credits on total return is particularly pronounced for
the shorter durations for which total return is measured, such as one and three
years. You should take this into consideration in any comparison of total return
between the sub-accounts and investment options offered pursuant to other
annuities.
When a Sub-Account has been in operation for one, five, and ten years,
respectively, the average annual total return for these periods will be
provided. For periods prior to the date the Sub-Account commenced operations,
performance information for Contracts funded by the Sub-Accounts will be
calculated based on the performance of the Investment Funds' portfolios and the
assumption that the Sub-Accounts were in existence for the same periods as those
indicated for the Investment Funds' portfolios, with the level of Contract
charges that were in effect at the inception of the Sub-Accounts for the
Contracts.
Some of the Sub-Accounts invest in service class shares that assess a 12b-1
fee. These service class shares were not available through the Variable Account
until June 5, 2000, and were not offered by the applicable Fund until after the
original inception date of that Fund. Non-standardized performance of these
service class shares is shown from the original Fund inception date. Performance
up to the date that the specific class of service class shares was first offered
by the applicable Fund has been calculated based on the performance of the
initial class of shares offered by that Fund. Actual performance for service
class shares will be lower than for initial class shares because of the
assessment of a 12b-1 fee on service class shares.
ReliaStar Life may, from time to time, also disclose yield and total
returns for the portfolios of the Investment Funds, including such disclosure
for periods prior to the dates the Sub-Accounts commenced operations.
ReliaStar Life may also report other information including the effect of
tax-deferred compounding on a Sub-Account's investment returns, or returns in
general, which may be illustrated by tables, graphs or charts.
Advertising and sales literature may compare the performance of each
Sub-Account to the Standard & Poor's Composite Index of 500 Stocks, a widely
used measure of stock performance. This unmanaged index assumes the reinvestment
of dividends but does not reflect any "deduction" for the expense of operating
or managing an investment portfolio. Other independent ranking services and
indices may also be used as a source of performance comparison.
B-1
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Each Sub-Account may, from time to time, advertise or include in sales
literature performance relative to certain performance rankings and indices
compiled by independent organizations. More detailed information as to the
calculation of performance information, as well as comparisons with unmanaged
market indices, appears in the Statement of Additional Information.
SUB-ACCOUNT ACCUMULATION UNIT VALUES
The following table shows, for each Sub-Account of the Variable Account,
the value of a Sub-Account Accumulation Unit as they are invested in portfolios
at the dates shown, and the total number of Sub-Account Accumulation Units
outstanding at the end of each period.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------------
SUB-ACCOUNT INVESTING IN 1999 1998 1997 1996 1995 1994
------------------------ ------------- ------------ ------------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. DENT DEMOGRAPHIC TRENDS
FUND
(Since May 1, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
THE ALGER AMERICAN FUND:
ALGER AMERICAN GROWTH PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 14.3117 $ 9.8005 $ 10.0000 -- -- --
End of period .............................. $ 18.8769 $ 14.3117 $ 9.8005 -- -- --
Units outstanding at end of period ......... 2,499,069 651,530 63,728 -- -- --
ALGER AMERICAN LEVERAGED ALLCAP
PORTFOLIO
(Since May 1, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
ALGER AMERICAN MIDCAP GROWTH
PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 12.5561 $ 9.7711 $ 10.0000 -- -- --
End of period .............................. $ 16.3264 $ 12.5561 $ 9.7711 -- -- --
Units outstanding at end of period ......... 455,927 204,638 59,897 -- -- --
ALGER AMERICAN SMALL
CAPITALIZATION PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 11.4116 $ 10.0159 $ 10.0000 -- -- --
End of period .............................. $ 16.1404 $ 11.4116 $ 10.0159 -- -- --
Units outstanding at end of period ......... 408,867 254,748 73,647 -- -- --
FIDELITY VARIABLE INSURANCE PRODUCTS
FUND (VIP):
VIP EQUITY-INCOME PORTFOLIO --
SERVICE CLASS 2
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
VIP GROWTH PORTFOLIO -- SERVICE
CLASS 2
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
</TABLE>
B-2
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
-----------------------------------------------------------------------------------
SUB-ACCOUNT INVESTING IN 1999 1998 1997 1996 1995 1994
------------------------ ------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
VIP HIGH INCOME PORTFOLIO --
SERVICE CLASS 2
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
VIP MONEY MARKET PORTFOLIO --
INITIAL CLASS
(Since January 6, 1994)
Beginning of period ........................ $ 12.0719 $ 11.6055 $ 11.1555 $ 10.7316 $ 10.2767 $ 10.0000
End of period .............................. $ 12.5217 $ 12.0719 $ 11.6055 $ 11.1555 $ 10.7316 $ 10.2767
Units outstanding at end of period ......... 5,232,470 2,569,427 2,122,382 1,558,218 1,002,405 427,592
FIDELITY VARIABLE INSURANCE PRODUCTS
FUND II (VIP II):
VIP II CONTRAFUND(R) PORTFOLIO --
SERVICE CLASS 2
(Since June 5, 2000)
Beginning of period ........................ -- $ -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
VIP II INDEX 500 PORTFOLIO -- INITIAL
CLASS
(Since January 6, 1994)
Beginning of period ........................ $ 26.9978 $ 21.3328 $ 16.3012 $ 13.4594 $ 9.9476 $ 10.0000
End of period .............................. $ 32.0860 $ 26.9978 $ 21.3328 $ 16.3012 $ 13.4594 $ 9.9476
Units outstanding at end of period ......... 3,625,706 2,817,908 1,881,104 1,010,296 314,004 89,274
VIP II INVESTMENT GRADE BOND
PORTFOLIO -- INITIAL CLASS
(Since January 6, 1994)
Beginning of period ........................ $ 12.8823 $ 12.0011 $ 11.1581 $ 10.9662 $ 9.4774 $ 10.0000
End of period .............................. $ 12.5711 $ 12.8823 $ 12.0011 $ 11.1581 $ 10.9662 $ 9.4774
Units outstanding at end of period ......... 1,302,913 1,152,135 711,350 709,332 668,429 306,289
JANUS ASPEN SERIES:
AGGRESSIVE GROWTH PORTFOLIO --
SERVICE SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
GROWTH PORTFOLIO --
SERVICE SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
INTERNATIONAL GROWTH PORTFOLIO --
SERVICE SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
</TABLE>
B-3
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
------------------------------------------------------------------------
SUB-ACCOUNT INVESTING IN 1999 1998 1997 1996 1995 1994
------------------------ ------------- ------------- ------------- ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
WORLDWIDE GROWTH PORTFOLIO --
SERVICE SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
NEUBERGER BERMAN ADVISERS
MANAGEMENT TRUST ("AMT"):
LIMITED MATURITY BOND PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 10.4985 $ 10.1977 $ 10.0000 -- -- --
End of period .............................. $ 10.5065 $ 10.4985 $ 10.1977 -- -- --
Units outstanding at end of period ......... 653,472 483,372 44,381 -- -- --
PARTNERS PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 10.5535 $ 10.2690 $ 10.0000 -- -- --
End of period .............................. $ 11.1748 $ 10.5535 $ 10.2690 -- -- --
Units outstanding at end of period ......... 1,101,648 1,291,067 337,731 -- -- --
SOCIALLY RESPONSIVE PORTFOLIO
(Since April 30, 1999)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. $ 10.6549 -- -- -- -- --
Units outstanding at end of period ......... 22,281 -- -- -- -- --
OCC ACCUMULATION TRUST:
EQUITY PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 11.7390 $ 10.6414 $ 10.0000 -- -- --
End of period .............................. $ 11.8711 $ 11.7390 $ 10.6414 -- -- --
Units outstanding at end of period ......... 284,469 248,818 57,717 -- -- --
GLOBAL EQUITY PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 10.5687 $ 9.4596 $ 10.0000 -- -- --
End of period .............................. $ 13.1877 $ 10.5687 $ 9.4596 -- -- --
Units outstanding at end of period ......... 40,473 29,458 10,483 -- -- --
MANAGED PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 10.6494 $ 10.0805 $ 10.0000 -- -- --
End of period .............................. $ 11.0271 $ 10.6494 $ 10.0805 -- -- --
Units outstanding at end of period ......... 967,119 1,513,567 278,744 -- -- --
SMALL CAP PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 9.1478 $ 10.1963 $ 10.0000 -- -- --
End of period .............................. $ 8.8561 $ 9.1478 $ 10.1963 -- -- --
Units outstanding at end of period ......... 407,689 369,821 94,123 -- -- --
PILGRIM VARIABLE PRODUCTS TRUST
(PILGRIM):
GROWTH OPPORTUNITIES PORTFOLIO
(Since May 1, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
</TABLE>
B-4
<PAGE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
----------------------------------------------------------------------------
SUB-ACCOUNT INVESTING IN 1999 1998 1997 1996 1995 1994
------------------------ ------------- ------------- ------------- ------------- ------------- ------
<S> <C> <C> <C> <C> <C> <C>
GROWTH + VALUE PORTFOLIO
(Since January 3, 1995)
Beginning of period ........................ $ 19.9820 $ 16.9801 $ 15.0172 $ 12.3714 $ 10.0000 --
End of period .............................. $ 38.4240 $ 19.9820 $ 16.9801 $ 15.0172 $ 12.3714 --
Units outstanding at end of period ......... 666,517 595,830 613,041 376,557 16,298 --
HIGH YIELD BOND PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 10.0955 $ 10.3496 $ 10.0000 -- -- --
End of period .............................. $ 9.6354 $ 10.0955 $ 10.3496 -- -- --
Units outstanding at end of period ......... 368,743 389,807 55,079 -- -- --
INTERNATIONAL VALUE PORTFOLIO
(Since August 8, 1997)
Beginning of period ........................ $ 11.6165 $ 10.0738 $ 10.0000 -- -- --
End of period .............................. $ 17.2046 $ 11.6165 $ 10.0738 -- -- --
Units outstanding at end of period ......... 284,973 232,846 59,173 -- -- --
MAGNACAP PORTFOLIO
(Since May 1, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
MIDCAP OPPORTUNITIES PORTFOLIO
(Since May 1, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
RESEARCH ENHANCED INDEX PORTFOLIO
(Since January 3, 1995)
Beginning of period ........................ $ 13.4190 $ 13.6825 $ 12.7208 $ 11.3881 $ 10.0000 --
End of period .............................. $ 14.0038 $ 13.4190 $ 13.6825 $ 12.7208 $ 11.3881 --
Units outstanding at end of period ......... 464,405 480,880 286,906 152,651 21,964 --
SMALLCAP OPPORTUNITIES PORTFOLIO
(Since January 3, 1995)
Beginning of period ........................ $ 17.7950 $ 15.3827 $ 13.4910 $ 12.0224 $ 10.0000 --
End of period .............................. $ 42.3014 $ 17.7950 $ 15.3827 $ 13.4910 $ 12.0224 --
Units outstanding at end of period ......... 434,003 323,803 261,038 143,393 38,118 --
PUTNAM VARIABLE TRUST:
PUTNAM VT GROWTH AND INCOME
FUND -- CLASS IB SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
PUTNAM VT NEW OPPORTUNITIES FUND --
CLASS IB SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
PUTNAM VT VOYAGER FUND --
CLASS IB SHARES
(Since June 5, 2000)
Beginning of period ........................ -- -- -- -- -- --
End of period .............................. -- -- -- -- -- --
Units outstanding at end of period ......... -- -- -- -- -- --
</TABLE>
B-5
<PAGE>
(This page has been left blank intentionally.)
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
-----------------
INDIVIDUAL DEFERRED VARIABLE/FIXED ANNUITY CONTRACTS
ISSUED BY
RELIASTAR SELECT VARIABLE ACCOUNT
AND
RELIASTAR LIFE INSURANCE COMPANY
This Statement of Additional Information is not a Prospectus, but should be
read in conjunction with the Prospectus dated June 5, 2000 (the "Prospectus")
relating to the Advantage SE Individual Deferred Variable/Fixed Annuity
Contracts issued by ReliaStar Select Variable Account (the "Variable Account")
and ReliaStar Life Insurance Company ("ReliaStar Life"). Much of the information
contained in this Statement of Additional Information expands upon subjects
discussed in the Prospectus. A copy of the Prospectus may be obtained from
ReliaStar Life's Service Center at P.O. Box 5050, Minot, North Dakota
58702-5050, by calling 1-877-884-5050, or from Washington Square Securities,
Inc., 20 Washington Avenue South, Minneapolis, Minnesota 55401.
Capitalized terms used in this Statement of Additional Information that are
not otherwise defined herein shall have the meanings given to them in the
Prospectus.
-----------------
TABLE OF CONTENTS
PAGE
----
Introduction .......................................................... SAI-2
Administration of the Contracts ....................................... SAI-2
Custody of Assets ..................................................... SAI-2
Experts ............................................................... SAI-2
Distribution of the Contracts ......................................... SAI-2
Calculation of Yield and Return ....................................... SAI-2
Financial Statements .................................................. SAI-11
-----------------
The date of this Statement of Additional Information is June 5, 2000.
SAI-1
<PAGE>
INTRODUCTION
The Advantage SE Contracts (the "Contracts") are flexible purchase payment
contracts. The Contracts are sold both as non-qualified contracts and/or in
connection with retirement plans which may qualify for special federal tax
treatment under the Internal Revenue Code. (See "Federal Tax Status" in the
Prospectus.) Annuity payouts under the Contracts are deferred until a selected
later date.
Purchase payments may be allocated to one or more of the available
Sub-Accounts of the Variable Account, a separate account of ReliaStar Life,
and/or to the Fixed Account (which is the general account of ReliaStar Life).
Purchase payments allocated to one or more of the available Sub-Accounts of the
Variable Account, as selected by the Contract Owner, will be invested in shares
at net asset value of one or more of a group of investment funds (the
"Investment Funds").
ADMINISTRATION OF THE CONTRACTS
ReliaStar Life performs certain administrative functions ("Administrative
Functions") relating to the Contracts and the Variable Account in Minot, North
Dakota. These functions include, among other things, maintaining the books and
records of the Variable Account and the Sub-Accounts, and maintaining records of
the name, address, taxpayer identification number, Contract number, type of
Contract issued to each Owner, Contract Value and other pertinent information
necessary to the administration and operation of the Contracts. ReliaStar Life
receives no payment for performing any of the Administrative Functions.
CUSTODY OF ASSETS
ReliaStar Life maintains custody of the assets of the Variable Account. As
Custodian, ReliaStar Life holds cash balances for the Variable Account pending
investment in the Investment Funds or distribution. The Investment Fund shares
owned by the Sub-accounts are reflected only on the records of the Funds, and
are not issued in certificated form.
EXPERTS
The financial statements of ReliaStar Select Variable Account as of
December 31, 1999 and for each of the two years then ended and the Financial
Statements of ReliaStar Life Insurance Company for the years ended December 31,
1999 and 1998, which are incorporated by reference in this Statement of
Additional Information, have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their reports which are incorporated by reference herein,
and have been so incorporated by reference in reliance upon the reports of such
firm given upon their authority as experts in accounting and auditing.
DISTRIBUTION OF THE CONTRACTS
The Contracts are distributed by the General Distributor, Washington Square
Securities, Inc., which is a direct wholly-owned subsidiary of ReliaStar
Financial Corp. and is an affiliate of ReliaStar Life. The Contracts will be
sold by licensed insurance agents in those states where the Contracts can be
lawfully sold. Such agents will be registered representatives of broker-dealers
registered under the Securities Exchange Act of 1934 who are members of the
National Association of Securities Dealers, Inc.
Advantage SE Annuity Contracts were not offered until June 5, 2000. As
such, no amounts had been paid to the General Distributor for distribution of
the Contracts as of the date of the Prospectus.
No deduction for a sales charge is made from the purchase payments for the
Contracts. However, if part or all of a Contract's value is surrendered,
surrender charges (which may be deemed to be contingent deferred sales charges)
may be made by ReliaStar Life. The method used to determine the amount of such
charge is described in the Prospectus under the heading "Charges Made By
ReliaStar Life -- Surrender Charge (Contingent Deferred Sales Charge)."
CALCULATION OF YIELD AND RETURN
CURRENT YIELD AND EFFECTIVE YIELD. Current yield and effective yield will
be calculated only for the VIP Money Market Portfolio Sub-Account.
The current yield is based on a seven-day period (the "base period") and is
calculated by determining the "net change in value" on a hypothetical account
having a balance of one Accumulation Unit at the beginning of the period,
dividing the net change in account value by the value of the account at the
beginning of the base period to obtain the base period return, and multiplying
the base period return by 365/7 with the resulting yield figure carried to the
nearest hundredth of one percent. The effective yield is computed in a similar
manner, except that the base period return is compounded by adding 1, raising
the sum to a power equal to 365 divided by 7, and subtracting 1 from the result,
according to the following formula:
SAI-2
<PAGE>
Effective Yield = [(Base Period Return + 1) ] 365/7 - 1
Net changes in value of a hypothetical account will include net investment
income of the account (accrued daily dividends as declared by the VIP Money
Market Portfolio, less daily expense and contract charges to the account) for
the period, but will not include realized or unrealized gains or losses on its
underlying fund shares.
The VIP Money Market Portfolio Sub-Account's yield and effective yield will
vary in response to any fluctuations in interest rates and expenses of the
Sub-Account.
The yield and effective yield of the Sub-Account for the seven day period
ending December 31, 1999 were as follows:
Yield: 4.89%
Effective Yield: 5.01%
STANDARDIZED YIELD. A standardized yield computation may be used for bond
Sub-Accounts. The yield quotation will be based on a recent 30 day (or one
month) period, and is computed by dividing the net investment income per
Accumulation Unit earned during the period by the maximum offering price on the
last day of the period according to the following formula:
Yield = 2 [( a - b + 1) 6 - 1]
-----
cd
Where:
a = net investment earned during the period by the Fund or Portfolio
attributable to shares owned by the Sub-Account.
b = expenses accrued for the period (net of reimbursements).
c = the average daily number of Accumulation Units outstanding during the
period.
d = the maximum offering price per Accumulation Unit on the last day of
the period.
Yield on each Sub-Account is earned from dividends declared and paid by the
underlying Fund or Portfolio, which are automatically reinvested in Fund or
Portfolio shares.
AVERAGE ANNUAL TOTAL RETURNS. From time to time, sales literature or
advertisements may also quote average annual total returns for one or more of
the Sub-Accounts for various periods of time.
Average annual total returns represent the average annual compounded rates
of return that would equate an initial investment of $1,000 under a Contract to
the redemption value of that investment as of the last day of each of the
periods. The ending date for each period for which total return quotations are
provided will be for the most recent month-end practicable, considering the type
and media of the communication and will be stated in the communication.
Average annual total returns will be calculated using Sub-Account unit
values which ReliaStar Life calculates on each Valuation Date based on the
performance of the Sub-Account's underlying Portfolio, and the deductions for
Mortality and Expense Risk Premiums, the Administration Charge, and the Annual
Contract Charge. The calculation assumes that the $30 Annual Contract Charge is
deducted at the end of each Contract Year.
Return figures reflect the addition of a 4% credit for any period
commencing on or after June 5, 2000. Returns reflect any applicable 12b-1 fee
charged on service class shares. Service class shares were not offered through
the Variable Account until June 5, 2000.
For purposes of calculating average annual total return, an average per
dollar Annual Contract Charge attributable to the hypothetical account for the
period is used. The calculation assumes surrender of the Contract at the end of
the period
SAI-3
<PAGE>
for the return quotation. Total returns will therefore reflect a deduction of
the Surrender Charge for any period less than nine years. The total return will
then be calculated according to the following formula:
TR = ((ERV/P) 1/N) - 1
Where:
TR = The average annual total return net of Sub-Account recurring charges.
ERV = the ending redeemable value (net of any applicable surrender charge)
of the hypothetical account at the end of the period.
P = a hypothetical initial payment of $1,000.
N = the number of years in the period.
SAI-4
<PAGE>
Such average annual total return information for the Sub-Accounts is as
follows:
<TABLE>
<CAPTION>
FOR THE 1-YEAR FOR THE 5-YEAR
SUB-ACCOUNT PERIOD ENDED 12/31/99 PERIOD ENDED 12/31/99
- ----------- --------------------- ---------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American Growth Portfolio 24.64% N/A
(Sub-Account Inception: 8/8/97)
Alger American Leveraged AllCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American MidCap Growth Portfolio 22.77% N/A
(Sub-Account Inception: 8/8/97)
Alger American Small Capitalization Portfolio 34.18% N/A
(Sub-Account Inception: 8/8/97)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP Growth Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP High Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Index 500 Portfolio -- Initial Class 11.59% 25.93%
(Sub-Account Inception: 1/6/94)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class (9.67)% 4.89%
(Sub-Account Inception: 1/6/94)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen International Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio (7.18)% N/A
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Partners Portfolio (1.37)% N/A
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Sub-Account Inception: 4/30/99)
OCC Equity Portfolio* (6.13)% N/A
(Sub-Account Inception: 8/8/97)
OCC Global Equity Portfolio 17.52% N/A
(Sub-Account Inception: 8/8/97)
OCC Managed Portfolio* (3.71)% N/A
(Sub-Account Inception: 8/8/97)
OCC Small Cap Portfolio* (10.44)% N/A
(Sub-Account Inception: 8/8/97)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio 85.04% N/A
(Sub-Account Inception: 1/3/95)
Pilgrim VP High Yield Bond Portfolio (11.81)% N/A
(Sub-Account Inception: 8/8/97)
Pilgrim VP International Value Portfolio 40.85% N/A
(Sub-Account Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** (2.90)% N/A
(Sub-Account Inception: 1/3/95)
Pilgrim VP SmallCap Opportunities Portfolio** 130.46% N/A
(Sub-Account Inception: 1/3/95)
Putnam VT Growth and Income Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT New Opportunities Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT Voyager Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
</TABLE>
SAI-5
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
FOR THE 10-YEAR DATE OF INCEPTION OF
SUB-ACCOUNT PERIOD ENDED 12/31/99 SUB-ACCOUNT TO 12/31/99
- ----------- --------------------- -----------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American Growth Portfolio N/A 28.19%
(Sub-Account Inception: 8/8/97)
Alger American Leveraged AllCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American MidCap Growth Portfolio N/A 20.34%
(Sub-Account Inception: 8/8/97)
Alger American Small Capitalization Portfolio N/A 19.73%
(Sub-Account Inception: 8/8/97)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP Growth Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP High Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Index 500 Portfolio -- Initial Class N/A 21.12%
(Sub-Account Inception: 1/6/94)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class N/A 3.08%
(Sub-Account Inception: 1/6/94)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen International Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio N/A (0.97)%
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Partners Portfolio N/A 1.80%
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Sub-Account Inception: 4/30/99)
OCC Equity Portfolio* N/A 4.58%
(Sub-Account Inception: 8/8/97)
OCC Global Equity Portfolio N/A 9.67%
(Sub-Account Inception: 8/8/97)
OCC Managed Portfolio* N/A 1.20%
(Sub-Account Inception: 8/8/97)
OCC Small Cap Portfolio* N/A (8.32)%
(Sub-Account Inception: 8/8/97)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio N/A 30.46%
(Sub-Account Inception: 1/3/95)
Pilgrim VP High Yield Bond Portfolio N/A (4.75)%
(Sub-Account Inception: 8/8/97)
Pilgrim VP International Value Portfolio N/A 23.12%
(Sub-Account Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** N/A 5.95%
(Sub-Account Inception: 1/3/95)
Pilgrim VP SmallCap Opportunities Portfolio** N/A 33.03%
(Sub-Account Inception: 1/3/95)
Putnam VT Growth and Income Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT New Opportunities Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT Voyager Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
</TABLE>
From time to time, sales literature or advertisements may quote average
annual total returns for periods prior to the date the Sub-Accounts commenced
operations. Such performance information for the Sub-Accounts will reflect the
addition of credits to Contracts prior to June 5, 2000, and will be calculated
based on the performance of the Portfolios and the assumption that the
Sub-Accounts were in existence for the same periods as those indicated for the
Portfolios, with the level of Contract charges currently in effect. Some of the
Sub-Accounts invest in service class shares that assess a 12b-1 fee. These
service class shares were not available through the Variable Account until June
5, 2000, and were not offered by the applicable Fund until after the original
inception date of that Fund. Performance of these service class shares will be
shown from the original Fund inception date. Performance up to the date that the
specific class of service class shares was first offered by the applicable Fund
will be calculated based on the performance of the initial class of shares
offered by that Fund. Actual performance for service class shares will be lower
than for initial class shares because of the assessment of a 12b-1 fee on
service class shares.
SAI-6
<PAGE>
Such average annual total return information for the Sub-Accounts is as
follows:
<TABLE>
<CAPTION>
FOR THE 1-YEAR FOR THE 5-YEAR
SUB-ACCOUNT PERIOD ENDED 12/31/99 PERIOD ENDED 12/31/99
- ----------- --------------------- ---------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Portfolio Inception: 12/29/99)
Alger American Growth Portfolio 29.92% 29.73%
(Portfolio Inception: 1/9/89)
Alger American Leveraged AllCap Portfolio 75.37% N/A
(Portfolio Inception: 1/25/95)
Alger American MidCap Growth Portfolio 27.97% 24.90%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 39.84% 21.37%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 1.80% 17.29%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio -- Service Class 2 33.71% 28.52%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio -- Service Class 2 3.67% 9.40%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 20.18% N/A
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio -- Initial Class 16.34% 26.94%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class (5.77)% 5.75%
(Portfolio Inception: 12/5/88)
Janus Aspen Aggressive Growth Portfolio -- Service Shares 123.94% 35.04%
(Portfolio Inception: 9/13/93)
Janus Aspen Growth Portfolio -- Service Shares 40.42% 28.67%
(Portfolio Inception: 9/13/93)
Janus Aspen International Growth Portfolio -- Service Shares 79.70% 32.05%
(Portfolio Inception: 5/2/94)
Janus Aspen Worldwide Growth Portfolio -- Service Shares 61.41% 32.41%
(Portfolio Inception: 9/13/93)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio (3.18)% 3.93%
(Portfolio Inception: 9/10/84)
Neuberger Berman Advisers Management Trust Partners Portfolio 2.87% 19.74%
(Portfolio Inception: 3/22/94)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Portfolio Inception: 2/18/99)
OCC Equity Portfolio* (2.09)% 18.70%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio 22.52% N/A
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 0.43% 18.40%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* (6.57)% 6.84%
(Portfolio Inception: 8/1/88)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio 92.73% 31.36%
(Portfolio Inception: 5/6/94)
Pilgrim VP High Yield Bond Portfolio (8.00)% 6.75%
(Portfolio Inception: 5/6/94)
Pilgrim VP International Value Portfolio 46.77% N/A
(Portfolio Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** 1.28% 6.91%
(Portfolio Inception: 5/6/94)
Pilgrim VP SmallCap Opportunities Portfolio** 139.97% 33.97%
(Portfolio Inception: 5/6/94)
Putnam VT Growth and Income Fund - Class IB Shares (3.18)% 18.04%
(Portfolio Inception: 2/1/88)
Putnam VT New Opportunities Fund - Class IB Shares 66.18% 31.56%
(Portfolio Inception: 5/2/94)
Putnam VT Voyager Fund - Class IB Shares 54.84% 30.40%
(Portfolio Inception: 2/1/88)
</TABLE>
SAI-7
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
FOR THE 10-YEAR DATE OF INCEPTION OF
SUB-ACCOUNT PERIOD ENDED 12/31/99 FUND PORTFOLIO TO 12/31/99
- ----------- --------------------- --------------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Portfolio Inception: 12/29/99)
Alger American Growth Portfolio 21.64% 21.75%
(Portfolio Inception: 1/9/89)
Alger American Leveraged AllCap Portfolio N/A 45.22%
(Portfolio Inception: 1/25/95)
Alger American MidCap Growth Portfolio N/A 23.45%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 17.01% 19.58%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 13.31% 12.51%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio -- Service Class 2 18.71% 17.44%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio -- Service Class 2 11.28% 9.63%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A 26.44%
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio -- Initial Class N/A 19.85%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class 6.08% 6.31%
(Portfolio Inception: 12/5/88)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A 33.15%
(Portfolio Inception: 9/13/93)
Janus Aspen Growth Portfolio -- Service Shares N/A 22.99%
(Portfolio Inception: 9/13/93)
Janus Aspen International Growth Portfolio -- Service Shares N/A 26.93%
(Portfolio Inception: 5/2/94)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A 28.44%
(Portfolio Inception: 9/13/93)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio 4.76% 6.22%
(Portfolio Inception: 9/10/84)
Neuberger Berman Advisers Management Trust Partners Portfolio N/A 16.15%
(Portfolio Inception: 3/22/94)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Portfolio Inception: 2/18/99)
OCC Equity Portfolio* 14.29% 14.43%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio N/A 16.64%
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 15.41% 16.45%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* 9.98% 10.29%
(Portfolio Inception: 8/1/88)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio N/A 27.83%
(Portfolio Inception: 5/6/94)
Pilgrim VP High Yield Bond Portfolio N/A 5.63%
(Portfolio Inception: 5/6/94)
Pilgrim VP International Value Portfolio N/A 25.24%
(Portfolio Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** N/A 6.22%
(Portfolio Inception: 5/6/94)
Pilgrim VP SmallCap Opportunities Portfolio** N/A 29.74%
(Portfolio Inception: 5/6/94)
Putnam VT Growth and Income Fund - Class IB Shares 12.81% 13.93%
(Portfolio Inception: 2/1/88)
Putnam VT New Opportunities Fund - Class IB Shares N/A 28.96%
(Portfolio Inception: 5/2/94)
Putnam VT Voyager Fund - Class IB Shares 22.29% 20.21%
(Portfolio Inception: 2/1/88)
</TABLE>
ReliaStar Life may also disclose average annual total returns for the
Investment Fund Portfolios since their inception, including such disclosure for
periods prior to the date the Variable Account commenced operations.
SAI-8
<PAGE>
Such performance information would not reflect the addition of any credits
on Contracts. Performance of service class shares will be shown from the
original Fund inception date. Performance up to the date that the specific class
of service class shares was first offered by the applicable Fund has been
calculated based on the performance of the initial class of shares offered by
that Fund. Actual performance for service class shares will be lower than for
initial class shares because of the assessment of a 12b-1 fee on service class
shares. Such average annual total return information for the Portfolios of the
Investment Funds is as follows:
<TABLE>
<CAPTION>
FOR THE 1-YEAR FOR THE 5-YEAR
SUB-ACCOUNT PERIOD ENDED 12/31/99 PERIOD ENDED 12/31/99
- ----------- --------------------- ---------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Portfolio Inception: 12/29/99)
Alger American Growth Portfolio 33.74% 30.94%
(Portfolio Inception: 1/9/89)
Alger American Leveraged AllCap Portfolio 78.06% N/A
(Portfolio Inception: 1/25/95)
Alger American MidCap Growth Portfolio 31.85% 26.14%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 43.42% 22.64%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 6.33% 18.61%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio -- Service Class 2 37.44% 29.74%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio -- Service Class 2 8.16% 10.86%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 24.25% N/A
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio -- Initial Class 20.51% 28.16%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class (1.05)% 7.30%
(Portfolio Inception: 12/5/88)
Janus Aspen Aggressive Growth Portfolio -- Service Shares 125.40% 36.23%
(Portfolio Inception: 9/13/93)
Janus Aspen Growth Portfolio -- Service Shares 43.98% 29.89%
(Portfolio Inception: 9/13/93)
Janus Aspen International Growth Portfolio -- Service Shares 82.27% 33.25%
(Portfolio Inception: 5/2/94)
Janus Aspen Worldwide Growth Portfolio -- Service Shares 64.45% 33.60%
(Portfolio Inception: 9/13/93)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio 1.48% 5.52%
(Portfolio Inception: 9/10/84)
Neuberger Berman Advisers Management Trust Partners Portfolio 7.37% 21.03%
(Portfolio Inception: 3/22/94)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Portfolio Inception: 2/18/99)
OCC Equity Portfolio* 2.54% 19.94%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio 26.53% N/A
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 5.00% 19.69%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* (1.83)% 8.35%
(Portfolio Inception: 8/1/88)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio 94.98% 32.56%
(Portfolio Inception: 5/6/94)
Pilgrim VP High Yield Bond Portfolio (3.22)% 8.63%
(Portfolio Inception: 5/6/94)
Pilgrim VP International Value Portfolio 50.18% N/A
(Portfolio Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** 5.82% 8.84%
(Portfolio Inception: 5/6/94)
Pilgrim VP SmallCap Opportunities Portfolio** 141.03% 35.16%
(Portfolio Inception: 5/6/94)
Putnam VT Growth and Income Fund - Class IB Shares 1.48% 19.35%
(Portfolio Inception: 2/1/88)
Putnam VT New Opportunities Fund - Class IB Shares 69.10% 32.76%
(Portfolio Inception: 5/2/94)
Putnam VT Voyager Fund - Class IB Shares 58.04% 31.61%
(Portfolio Inception: 2/1/88)
</TABLE>
SAI-9
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
FOR THE 10-YEAR DATE OF INCEPTION OF
SUB-ACCOUNT PERIOD ENDED 12/31/99 FUND PORTFOLIO TO 12/31/99
- ----------- --------------------- --------------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Portfolio Inception: 12/29/99)
Alger American Growth Portfolio 22.89% 23.05%
(Portfolio Inception: 1/9/89)
Alger American Leveraged AllCap Portfolio N/A 46.41%
(Portfolio Inception: 1/25/95)
Alger American MidCap Growth Portfolio N/A 24.72%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 18.22% 20.85%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 14.49% 13.78%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio -- Service Class 2 19.94% 18.76%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio -- Service Class 2 12.43% 10.88%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A 27.73%
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio -- Initial Class N/A 21.07%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class 7.19% 7.46%
(Portfolio Inception: 12/5/88)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A 34.40%
(Portfolio Inception: 9/13/93)
Janus Aspen Growth Portfolio -- Service Shares N/A 24.27%
(Portfolio Inception: 9/13/93)
Janus Aspen International Growth Portfolio -- Service Shares N/A 28.17%
(Portfolio Inception: 5/2/94)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A 29.69%
(Portfolio Inception: 9/13/93)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio 5.86% 7.47%
(Portfolio Inception: 9/10/84)
Neuberger Berman Advisers Management Trust Partners Portfolio N/A 17.47%
(Portfolio Inception: 3/22/94)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Portfolio Inception: 2/18/99)
OCC Equity Portfolio* 15.46% 15.66%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio N/A 18.06%
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 16.60% 17.70%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* 11.12% 11.48%
(Portfolio Inception: 8/1/88)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio N/A 29.07%
(Portfolio Inception: 5/6/94)
Pilgrim VP High Yield Bond Portfolio N/A 7.47%
(Portfolio Inception: 5/6/94)
Pilgrim VP International Value Portfolio N/A 27.15%
(Portfolio Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** N/A 8.09%
(Portfolio Inception: 5/6/94)
Pilgrim VP SmallCap Opportunities Portfolio** N/A 30.97%
(Portfolio Inception: 5/6/94)
Putnam VT Growth and Income Fund - Class IB Shares 13.98% 15.17%
(Portfolio Inception: 2/1/88)
Putnam VT New Opportunities Fund - Class IB Shares N/A 30.19%
(Portfolio Inception: 5/2/94)
Putnam VT Voyager Fund - Class IB Shares 22.29% 21.52%
(Portfolio Inception: 2/1/88)
</TABLE>
OTHER TOTAL RETURNS. From time to time, sales literature or advertisements
may quote average annual total returns for the Sub-Accounts that do not reflect
the Surrender Charge. Such performance may quote average annual total returns
for periods during which the Sub-Accounts were operating and for periods prior
to the date the Sub-Accounts commenced operations. These returns are calculated
in exactly the same way as average annual total returns described above, except
that the ending redeemable value of the hypothetical account for the period is
replaced with an ending value for the period that does not take into account any
charges on amounts surrendered or withdrawn. Such information is as follows:
SAI-10
<PAGE>
RETURNS SINCE DATE SUB-ACCOUNTS COMMENCED OPERATIONS
<TABLE>
<CAPTION>
FOR THE 1-YEAR FOR THE 5-YEAR
SUB-ACCOUNT PERIOD ENDED 12/31/99 PERIOD ENDED 12/31/99
- ----------- --------------------- ---------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American Growth Portfolio 31.84% N/A
(Sub-Account Inception: 8/8/97)
Alger American Leveraged AllCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American MidCap Growth Portfolio 29.97% N/A
(Sub-Account Inception: 8/8/97)
Alger American Small Capitalization Portfolio 41.38% N/A
(Sub-Account Inception: 8/8/97)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP Growth Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP High Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Index 500 Portfolio -- Initial Class 18.79% 26.36%
(Sub-Account Inception: 1/6/94)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class (2.47)% 5.77%
(Sub-Account Inception: 1/6/94)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen International Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio 0.02% N/A
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Partners Portfolio 5.83% N/A
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Sub-Account Inception: 4/30/99)
OCC Equity Portfolio* 1.07% N/A
(Sub-Account Inception: 8/8/97)
OCC Global Equity Portfolio 24.72% N/A
(Sub-Account Inception: 8/8/97)
OCC Managed Portfolio* 3.49% N/A
(Sub-Account Inception: 8/8/97)
OCC Small Cap Portfolio* (3.24)% N/A
(Sub-Account Inception: 8/8/97)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio 92.24% N/A
(Sub-Account Inception: 1/3/95)
Pilgrim VP High Yield Bond Portfolio (4.61)% N/A
(Sub-Account Inception: 8/8/97)
Pilgrim VP International Value Portfolio 48.05% N/A
(Sub-Account Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** 4.30% N/A
(Sub-Account Inception: 1/3/95)
Pilgrim VP SmallCap Opportunities Portfolio** 137.66% N/A
(Sub-Account Inception: 1/3/95)
Putnam VT Growth and Income Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT New Opportunities Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT Voyager Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
</TABLE>
SAI-11
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
FOR THE 10-YEAR DATE OF INCEPTION OF
SUB-ACCOUNT PERIOD ENDED 12/31/99 SUB-ACCOUNT TO 12/31/99
- ----------- --------------------- -----------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American Growth Portfolio N/A 30.29%
(Sub-Account Inception: 8/8/97)
Alger American Leveraged AllCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Alger American MidCap Growth Portfolio N/A 22.62%
(Sub-Account Inception: 8/8/97)
Alger American Small Capitalization Portfolio N/A 22.03%
(Sub-Account Inception: 8/8/97)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP Growth Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP High Income Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A N/A
(Sub-Account Inception: 6/5/00)
Fidelity VIP II Index 500 Portfolio -- Initial Class N/A 21.46%
(Sub-Account Inception: 1/6/94)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class N/A 3.85%
(Sub-Account Inception: 1/6/94)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen International Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio N/A 2.01%
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Partners Portfolio N/A 4.67%
(Sub-Account Inception: 8/8/97)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Sub-Account Inception: 4/30/99)
OCC Equity Portfolio* N/A 7.35%
(Sub-Account Inception: 8/8/97)
OCC Global Equity Portfolio N/A 12.17%
(Sub-Account Inception: 8/8/97)
OCC Managed Portfolio* N/A 4.09%
(Sub-Account Inception: 8/8/97)
OCC Small Cap Portfolio* N/A (5.01)%
(Sub-Account Inception: 8/8/97)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio N/A 30.89%
(Sub-Account Inception: 1/3/95)
Pilgrim VP High Yield Bond Portfolio N/A (1.61)%
(Sub-Account Inception: 8/8/97)
Pilgrim VP International Value Portfolio N/A 25.33%
(Sub-Account Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Sub-Account Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** N/A 6.93%
(Sub-Account Inception: 1/3/95)
Pilgrim VP SmallCap Opportunities Portfolio** N/A 33.43%
(Sub-Account Inception: 1/3/95)
Putnam VT Growth and Income Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT New Opportunities Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
Putnam VT Voyager Fund - Class IB Shares N/A N/A
(Sub-Account Inception: 6/5/00)
</TABLE>
SAI-12
<PAGE>
RETURNS INCLUDING PERIOD PRIOR TO DATE SUB-ACCOUNTS COMMENCED OPERATIONS
<TABLE>
<CAPTION>
FOR THE 1-YEAR FOR THE 5-YEAR
SUB-ACCOUNT PERIOD ENDED 12/31/99 PERIOD ENDED 12/31/99
- ----------- --------------------- ---------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Portfolio Inception: 12/29/99)
Alger American Growth Portfolio 31.84% 29.09%
(Portfolio Inception: 1/9/89)
Alger American Leveraged AllCap Portfolio 75.55% N/A
(Portfolio Inception: 1/25/95)
Alger American MidCap Growth Portfolio 29.97% 24.36%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 41.38% 20.91%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 4.81% 16.93%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio -- Service Class 2 35.48% 27.91%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio -- Service Class 2 6.61% 9.28%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 22.48% N/A
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio -- Initial Class 18.79% 26.36%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class (2.47)% 5.77%
(Portfolio Inception: 12/5/88)
Janus Aspen Aggressive Growth Portfolio -- Service Shares 122.24% 34.30%
(Portfolio Inception: 9/13/93)
Janus Aspen Growth Portfolio -- Service Shares 41.94% 28.05%
(Portfolio Inception: 9/13/93)
Janus Aspen International Growth Portfolio -- Service Shares 79.71% 31.37%
(Portfolio Inception: 5/2/94)
Janus Aspen Worldwide Growth Portfolio -- Service Shares 62.13% 31.72%
(Portfolio Inception: 9/13/93)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio 0.02% 4.01%
(Portfolio Inception: 9/10/84)
Neuberger Berman Advisers Management Trust Partners Portfolio 5.83% 19.32%
(Portfolio Inception: 3/22/94)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Portfolio Inception: 2/18/99)
OCC Equity Portfolio* 1.07% 18.30%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio 24.72% N/A
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 3.49% 18.02%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio * (3.24)% 6.81%
(Portfolio Inception: 8/1/88)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio 92.24% 30.69%
(Portfolio Inception: 5/6/94)
Pilgrim VP High Yield Bond Portfolio (4.61)% 6.72%
(Portfolio Inception: 5/6/94)
Pilgrim VP International Value Portfolio 48.05% N/A
(Portfolio Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** 4.30% 6.89%
(Portfolio Inception: 5/6/94)
Pilgrim VP SmallCap Opportunities Portfolio** 137.66% 33.25%
(Portfolio Inception: 5/6/94)
Putnam VT Growth and Income Fund - Class IB Shares 0.02% 17.67%
(Portfolio Inception: 2/1/88)
Putnam VT New Opportunities Fund - Class IB Shares 66.71% 30.88%
(Portfolio Inception: 5/2/94)
Putnam VT Voyager Fund - Class IB Shares 55.80% 29.75%
(Portfolio Inception: 2/1/88)
</TABLE>
SAI-13
<PAGE>
<TABLE>
<CAPTION>
FOR THE PERIOD FROM
FOR THE 10-YEAR DATE OF INCEPTION OF
SUB-ACCOUNT PERIOD ENDED 12/31/99 FUND PORTFOLIO TO 12/31/99
- ----------- --------------------- --------------------------
<S> <C> <C>
AIM V.I. Dent Demographic Trends Fund N/A N/A
(Portfolio Inception: 12/29/99)
Alger American Growth Portfolio 21.16% 21.32%
(Portfolio Inception: 1/9/89)
Alger American Leveraged AllCap Portfolio N/A 44.36%
(Portfolio Inception: 1/25/95)
Alger American MidCap Growth Portfolio N/A 22.96%
(Portfolio Inception: 5/3/93)
Alger American Small Capitalization Portfolio 16.55% 19.16%
(Portfolio Inception: 9/21/88)
Fidelity VIP Equity-Income Portfolio -- Service Class 2 12.87% 12.17%
(Portfolio Inception: 10/9/86)
Fidelity VIP Growth Portfolio -- Service Class 2 18.24% 17.09%
(Portfolio Inception: 10/9/86)
Fidelity VIP High Income Portfolio -- Service Class 2 10.84% 9.32%
(Portfolio Inception: 9/19/85)
Fidelity VIP II Contrafund(R) Portfolio -- Service Class 2 N/A 25.83%
(Portfolio Inception: 1/3/95)
Fidelity VIP II Index 500 Portfolio -- Initial Class N/A 19.36%
(Portfolio Inception: 8/27/92)
Fidelity VIP II Investment Grade Bond Portfolio -- Initial Class 5.66% 5.93%
(Portfolio Inception: 12/5/88)
Janus Aspen Aggressive Growth Portfolio -- Service Shares N/A 32.51%
(Portfolio Inception: 9/13/93)
Janus Aspen Growth Portfolio -- Service Shares N/A 22.51%
(Portfolio Inception: 9/13/93)
Janus Aspen International Growth Portfolio -- Service Shares N/A 26.36%
(Portfolio Inception: 5/2/94)
Janus Aspen Worldwide Growth Portfolio -- Service Shares N/A 27.87%
(Portfolio Inception: 9/13/93)
Neuberger Berman Advisers Management Trust Limited Maturity Bond Portfolio 4.35% 5.95%
(Portfolio Inception: 9/10/84)
Neuberger Berman Advisers Management Trust Partners Portfolio N/A 15.81%
(Portfolio Inception: 3/22/94)
Neuberger Berman Advisers Management Trust Socially Responsive Portfolio N/A N/A
(Portfolio Inception: 2/18/99)
OCC Equity Portfolio* 13.84% 14.04%
(Portfolio Inception: 8/1/88)
OCC Global Equity Portfolio N/A 16.40%
(Portfolio Inception: 3/1/95)
OCC Managed Portfolio* 14.96% 16.05%
(Portfolio Inception: 8/1/88)
OCC Small Cap Portfolio* 9.54% 9.91%
(Portfolio Inception: 8/1/88)
Pilgrim VP Growth Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Growth + Value Portfolio N/A 27.24%
(Portfolio Inception: 5/6/94)
Pilgrim VP High Yield Bond Portfolio N/A 5.62%
(Portfolio Inception: 5/6/94)
Pilgrim VP International Value Portfolio N/A 25.33%
(Portfolio Inception: 8/8/97)
Pilgrim VP MagnaCap Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP MidCap Opportunities Portfolio N/A N/A
(Portfolio Inception: 5/1/00)
Pilgrim VP Research Enhanced Index Portfolio** N/A 6.19%
(Portfolio Inception: 5/6/94)
Pilgrim VP SmallCap Opportunities Portfolio** N/A 29.12%
(Portfolio Inception: 5/6/94)
Putnam VT Growth and Income Fund - Class IB Shares 12.36% 13.55%
(Portfolio Inception: 2/1/88)
Putnam VT New Opportunities Fund - Class IB Shares N/A 28.35%
(Portfolio Inception: 5/2/94)
Putnam VT Voyager Fund - Class IB Shares 20.56% 19.81%
(Portfolio Inception: 2/1/88)
</TABLE>
SAI-14
<PAGE>
- -----------------
* On September 16, 1994, an investment company then called Quest for Value
Accumulation Trust (the "Old Trust") was effectively divided into two
investment funds, the Old Trust and the present OCC Accumulation Trust (the
"Trust") at which time the Trust commenced operations. The total net assets
for the Equity, Managed, and Small Cap Portfolios immediately after the
transaction were $86,789,755, $682,601,380, and $139,812,573, respectively,
with respect to the Old Trust and for the Equity, Managed, and Small Cap
Portfolios, $3,764,598, $51,345,102, and $8,129,274, respectively with
respect to the Trust. For the period prior to September 14, 1994, the
performance figures for each of the Equity, Managed, and Small Cap Portfolios
reflect the performance of the corresponding Portfolios of the Old Trust.
** The Pilgrim VP SmallCap Opportunities Portfolio (formerly the Northstar
Galaxy Trust Emerging Growth Portfolio) operated under an investment
objective of seeking income balanced with capital appreciation from inception
through November 8, 1998, when the investment objective was modified to
seeking long-term capital appreciation. The Pilgrim VP Research Enhanced
Index Portfolio (formerly the Northstar Galaxy Trust Multi-Sector Bond
Portfolio) operated under an investment objective of seeking current income
while preserving capital through April 29, 1999, when the investment
objective was modified to seeking long-term capital appreciation.
The Investment Funds have provided the total return information for the
Portfolios, including the Portfolio total return information used to calculate
the total returns of the Sub-Accounts for periods prior to the inception of the
Sub-Accounts. The AIM Variable Insurance Funds, The Alger American Fund,
Fidelity Variable Insurance Products Fund, Fidelity Variable Insurance Products
Fund II, Janus Aspen Series, Neuberger Berman Advisers Management Trust, OCC
Accumulation Trust, and Putnam Variable Trust are not affiliated with ReliaStar
Life.
ReliaStar Life may disclose Cumulative Total Returns in conjunction with
the standard formats described above. The Cumulative Total Returns will be
calculated using the following formula:
CTR = ERV/P - 1
Where:
CTR = the Cumulative Total Return net of Sub-Account recurring charges for
the period.
ERV = the ending redeemable value of the hypothetical investment at the end
of the period.
P = a hypothetical single payment of $1,000.
EFFECT OF THE ANNUAL CONTRACT CHARGE ON PERFORMANCE DATA. The Contract
provides for a $30 Annual Contract Charge to be deducted annually at the end of
each Contract Year, from the Sub-Accounts and the Fixed Account based on the
proportion that the value of each such account bears to the total Contract
Value. For purposes of reflecting the Annual Contract Charge in yield and total
return quotations, the annual charge is converted into an annual charge per
$1,000 invested based on the Annual Contract Charges collected from the average
total assets of the Variable Account and Fixed Account during the calendar year
ending December 31, 1999.
COMPARATIVE ADVERTISING. In advertising and sales literature, the
performance of each Sub-Account may be compared to the performance of other
variable annuity issuers in general or to the performance of particular types of
variable annuities investing in mutual funds, or investment series of mutual
funds with investment objectives similar to each of the Sub-Accounts. Lipper
Analytical Services, Inc. ("Lipper") and the Variable Annuity Research Data
Service ("VARDS") are independent services which monitor and rank the
performance of variable annuity issuers in each of the major categories of
investment objectives on an industry-wide basis.
Lipper's rankings include variable life insurance issuers as well as
variable annuity issuers. VARDS rankings compare only variable annuity issuers.
The performance analyses prepared by Lipper and VARDS each rank such issuers on
the basis of total return, assuming reinvestment of distributions, but do not
take sales charges, redemption fees or certain expense deductions at the
separate account level into consideration. In addition, VARDS prepares risk
adjusted rankings, which consider the effects of market risk on total return
performance. This type of ranking provides data as to which funds provide the
highest total return within various categories of funds defined by the degree of
risk inherent in their investment objectives.
SAI-15
<PAGE>
FINANCIAL STATEMENTS
This Statement of Additional Information incorporates by reference audited
Financial Statements for the Variable Account as of December 31, 1999 and for
each of the two years in the period then ended. Although the financial
statements are audited, the period they cover is not necessarily indicative of
the longer term performance of the assets held in the Variable Account.
ReliaStar Life's statements of financial condition as of December 31, 1999
and 1998, and the related statements of operations, shareholder's equity and
cash flows for the years ended December 31, 1999 and 1998 which are incorporated
by reference in this Statement of Additional Information, should be considered
only as bearing on ReliaStar Life's ability to meet its obligations under the
Contracts. They should not be considered as bearing on the investment
performance of the assets held in the Variable Account.
SAI-16
<PAGE>
RELIASTAR SELECT VARIABLE ACCOUNT
INDEPENDENT AUDITORS' REPORT*
STATEMENT OF ASSETS AND LIABILITIES*
STATEMENTS OF OPERATIONS AND
CHANGES IN CONTRACT OWNERS' EQUITY*
NOTES TO FINANCIAL STATEMENTS*
DECEMBER 31, 1999
- -----------------
* Incorporated by reference to the financial statements filed as part of
Amendment No. 11 to the Form N-4 Registration Statement of the ReliaStar
Select Variable Account, File No. 33-69892, filed April 17, 2000.
SAI-17
<PAGE>
RELIASTAR LIFE INSURANCE COMPANY
(A WHOLLY OWNED SUBSIDIARY OF RELIASTAR FINANCIAL CORP.)
INDEPENDENT AUDITORS' REPORT*
CONSOLIDATED BALANCE SHEETS*
CONSOLIDATED STATEMENTS OF INCOME*
CONSOLIDATED STATEMENTS OF SHAREHOLDER'S EQUITY*
CONSOLIDATED STATEMENTS OF CASH FLOWS*
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS*
DECEMBER 31, 1999
- -----------------
* Incorporated by reference to the financial statements contained in the
Prospectus filed as part of Amendment No. 11 to the Form S-6 Registration
Statement of Select-Life Variable Account, File No. 33-57244, filed March
31, 2000.
SAI-18
<PAGE>
PART C. OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements:
Part A: None
Part B: RELIASTAR SELECT VARIABLE ACCOUNT.(1)
Independent Auditors' Report Combined Statement of Assets
and Liabilities, December 31, 1999
Combined Statements of Operations and Changes in Contract
Owners' Equity, Years Ended December 31, 1999 and 1998
Notes to Financial Statements
RELIASTAR LIFE INSURANCE COMPANY.(2)
Independent Auditors' Report Consolidated Balance Sheets
December 31, 1999 and 1998
Consolidated Statements of Income, Years Ended December 31,
1999 and 1998
Consolidated Statements of Shareholders' Equity, Years
Ended December 31, 1999 and 1998
Consolidated Statements of Cash Flows, Years Ended December
31, 1999 and 1998
Notes to Consolidated Financial Statements
(b) Exhibits:
1. Resolution of the Board of Directors of ReliaStar Life Insurance
Company ("Depositor") authorizing the establishment of NWNL Select
Variable Account ("Registrant").(4)
Resolution of the Board of Directors of Depositor changing the name of
Registrant to ReliaStar Select Variable Account.(6)
2. Not Applicable.
3. (a) Form of General Distributor Agreement between Depositor and
Washington Square Securities, Inc. ("WSSI").(4)
(b) Forms of agreements between Depositor and broker-dealers with
respect to the sale of Contracts.(9)
(c) Form of Broker-Dealer Agency Compensation Schedule.(8)
4. (a) Form of Contract.(4)
(b) Purchase Payment Credit Endorsement.
(c) Allocation of Purchase Payments Endorsement.
(d) Form of Roth IRA Rider.(8)
(e) Form of Death Benefit and Owner Amendment.(10)
5. (a) Contract Application Form.(4)
(b) Form of Supplemental Application.
6. (a) Amended Articles of Incorporation of Depositor.(5)
(b) Amended Bylaws of Depositor.(5)
7. Not Applicable.
8. (a) Form of Participation Agreement by and among AIM Variable
Insurance Funds, A I M Distributors, Inc., and ReliaStar Life
Insurance Company.(2)
Form of letter amending the Participation Agreement.
Form of Notice of Assignment of the Participation Agreement and
Consent.
(b) Form of Participation Agreement by and between ReliaStar Life
Insurance Company and Fred Alger Management, Inc.(7)
Amended Exhibit to Participation Agreement.(2)
(c) Participation Agreement with Fidelity's Variable Insurance
Products Fund and Fidelity Distributors Corporation.
Participation Agreement and Amendments No. 1-8 (Initial
Class).(5)
Form of Amendment No. 11 to Participation Agreement (Service
Class).(3)
<PAGE>
(d) Participation Agreement with Fidelity's Variable Insurance
Products Fund II and Fidelity Distributors Corporation.
Participation Agreement and Amendments No. 1-7 (Initial
Class).(5)
Form of Amendment No. 10 to Participation Agreement (Service
Class).(3)
(e) Form of Participation Agreement by and between ReliaStar Life
Insurance Company and Janus Aspen Series. (Institutional
Shares.)(7)
Form of Participation Agreement between Janus Aspen Series and
ReliaStar Life Insurance Company (Service Shares).(3)
(f) Form of Participation Agreement by and between ReliaStar Life
Insurance Company and Neuberger Berman Advisers Management, Inc.,
Advisers Managers Trust and Neuberger Berman Management Inc.(7)
Amendment No. 1 dated February 1, 1999.(9)
(g) Form of Participation Agreement by and between ReliaStar Life
Insurance Company and OpCap Advisors.(7)
(h) Form of Participation Agreement with Putnam Capital Manager Trust
and Putnam Mutual Funds Corp. and Amendments No. 1-2. (Class IA
Shares).(5)
Form of Amendment No. 3 to Participation Agreement with Putnam
Capital Manager Trust and Putnam Mutual Funds Corp. (Class IB
Shares).(3)
(i) Form of Service Agreement by and between ReliaStar Life Insurance
Company and AIM Variable Insurance Funds.(2)
(j) Form of Service Agreement by and between ReliaStar Life Insurance
Company and Fred Alger Management, Inc.(7)
(k) Form of Service Agreement and Contract between ReliaStar Life
Insurance Company, WSSI, and Fidelity Investments Institutional
Operations Company and Fidelity Distributors Corporation dated
January 1, 1997.(6)
(l) Form of Service Agreement by and between ReliaStar Life Insurance
Company and Janus Capital Corporation (Institutional Shares).(7)
Form of Service Agreement by and between Janus Distributors, Inc.
and ReliaStar Life Insurance Company (Service Shares).(3)
(m) Form of Service Agreement by and between ReliaStar Life Insurance
Company and Neuberger Berman Management Inc., Neuberger Berman
Advisers Management, Inc., and Advisers Managers Trust.(7)
(n) Form of Service Agreement by and between ReliaStar Life Insurance
Company and OpCap Advisors.(7)
9. Consent and Opinion of Stewart D. Gregg as to the legality of the
securities being registered.
10. Independent Auditors' Consent of Deloitte & Touche LLP.
11. Not Applicable.
12. Not Applicable.
13. Schedules for Computation of Performance Quotations.(10)
14. Powers of Attorney.(11)
Richard R. Crowl Mark S. Jordahl James R. Miller
Michael J. Dubes Kenneth U. Kuk Robert C. Salipante
Wayne R. Huneke Susan W.A. Mead John G. Turner
Dewette Ingham William R. Merriam
- -----------------
(1) Incorporated by reference to the financial statements filed as part of
Amendment No. 11 of the Form N-4 Registration Statement of ReliaStar Select
Variable Account, File No. 33-69892, filed April 17, 2000.
(2) Incorporated by reference to the financial statements contained in the
Prospectus filed as part of Amendment No. 11 of the Form S-6 Registration
Statement of Select-Life Variable Account, File No. 33-57244, filed March
31, 2000.
(3) Incorporated by reference to Amendment No. 1 of the Form S-6 Registration
Statement of Select-Life Variable Account, File No. 333-69431, filed April
14, 2000.
(4) Incorporated by reference to Post-effective Amendment No. 3 to the
Registrant's Form N-4 Registration Statement File No. 33-69892, filed April
16, 1996.
(5) Incorporated by reference to the Form S-6 Registration Statement of
Select-Life Variable Account, File No. 333-18517, filed December 23, 1996.
(6) Incorporated by reference to Post-Effective Amendment No. 4 to the
Registrant's Form N-4 Registration Statement File No. 33-69892, filed April
14, 1997.
(7) Incorporated by reference to Post-effective Amendment No. 21 to Select-Life
Variable Account, File No. 2-95392, filed August 4, 1997.
<PAGE>
(8) Incorporated by reference to Post-Effective Amendment No. 8 to the
Registrant's Form N-4 Registration Statement File No. 33-69892, filed April
27, 1998.
(9) Incorporated by reference to Pre-effective Amendment No. 1 of the Form S-6
Registration Statement of Select-Life Variable Account, File No. 333-69431,
filed April 5, 1999.
(10) Incorporated by reference to Post-effective Amendment No. 10 to the
Registrant's Form N-4 Registration Statement , File No. 33-69892, filed
April 16, 1999.
(11) Incorporated by reference to Registrant's initial Registration Statement
filed on Form N-4, filed February 17, 2000.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME POSITIONS AND OFFICES WITH DEPOSITOR
- ---- ------------------------------------
John G. Turner Director, Chairman, and Chief Executive Officer
Robert C. Salipante Director, President, and Chief Operating Officer
Susan M. Bergen Secretary
Richard R. Crowl Director, Senior Vice President, and General Counsel
Michael J. Dubes Director and Senior Vice President
James R. Gelder Senior Vice President
Paul H. Gulstrand Senior Vice President
Wayne R. Huneke Director and Senior Executive Vice President
Dewette Ingham Director
Mark S. Jordahl Director, Senior Vice President and Chief Investment
Officer
Kenneth U. Kuk Director and Executive Vice President
Susan W.A. Mead Director and Vice President -- Strategic Marketing and
Planning
William R. Merriam Director and Executive Vice President
James R. Miller Director, Senior Vice President, Chief Financial Officer
and Treasurer
Blake W. Mohr Senior Vice President Retirement Plan Division
Roger A. Weber Senior Vice President
Theresa A. Wurst Senior Vice President
The principal business address of each of the foregoing executive officers,
except Michael J. Dubes and James R. Gelder, is 20 Washington Avenue South,
Minneapolis, Minnesota 55401. The principal business address of Michael J. Dubes
is 1501 Fourth Avenue, Seattle, Washington 98111, and the principal business
address of James R. Gelder is 20 Security Drive, Avon, Connecticut 06001.
ITEM 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH THE DEPOSITOR OR
REGISTRANT
Registrant is a separate account of Depositor, established by the Board of
Directors of Depositor in 1981 pursuant to the laws of the State of Minnesota.
Depositor is a direct, wholly-owned subsidiary of ReliaStar Financial Corp., a
Delaware Corporation.
<PAGE>
A list identifying the subsidiaries of ReliaStar Financial Corp. and their
relationship to one another follows.
OWNER AND
COMPANY PERCENTAGE
- ------- ----------
ReliaStar Life Insurance Company ("RLIC") RLR-100%
Northern Life Insurance Company ("NLIC") RLIC-100%
Norlic, Inc. NLIC-100%
Security-Connecticut Life Insurance Company ("SCL") RUSL-100%
ReliaStar Life Insurance Company of New York ("RLNY") SCL-100%
NWNL Benefits Corporation ("NBC") RLIC-100%
ReliaStar Reinsurance Group (UK), Ltd. RLIC-100%
ReliaStar Investment Research, Inc. RLR-100%
Washington Square Securities, Inc. RLR-100%
Washington Square Insurance Agency, Inc. (Puerto Rico) WSSI-100%
Pilgrim Holdings Corporation ("PHC") Common RLR-100%
Preferred RLR-100%
Pilgrim Advisors, Inc. PHC-100%
Pilgrim Group, Inc. (PGI) PHC-100%
Pilgrim Securities, Inc. (PSI) PGI-100%
Pilgrim Funding, Inc. PSI-100%
Pilgrim Investments, Inc. PGI-100%
Express American T.C. Corp. PHC-100%
EAMC Liquidation Corp. PHC-100%
IB Holdings, Inc. ("IB") RLR-100%
Northeastern Corporation IB-100%
The New Providence Insurance Company, Limited IB-100%
Successful Money Management Seminars, Inc. ("SMMS") RLR-100%
PrimeVest Financial Services, Inc. ("PVF") RLR-100%
PrimeVest Insurance Agency of Alabama, Inc. PVF-100%
PrimeVest Insurance Agency of New Mexico, Inc. PVF-100%
PrimeVest Insurance Agency of Ohio, Inc. Class A Robert Chapman-100%
Class B PVF-100%
Branson Insurance Agency, Inc. PVF-100%
Granite Investment Services, Inc. PVF-100%
Split Rock Financial, Inc. PVF-100%
Bancwest Investment Services, Inc. PVF-100%
Arrowhead, Ltd. RLR-100%
ReliaStar Payroll Agent, Inc. RLR-100%
ReliaStar Bancshares, Inc. ("RBS") RLR-100%
ReliaStar Bank ("RB") RBS-100%
ReliaStar Investment Services, Inc. RB-100%
ReliaStar Managing Underwriters, Inc. RLR-100%
Financial Northeastern Corp. ("FNC") RLR-100%
Financial Northeastern Securities, Inc. RLR-100%
FNC Insurance Services, Inc. RLR-100%
ReliaStar National Trust Company RLR-100%
The financial statements of the Depositor and each subsidiary of Depositor
are consolidated with those of ReliaStar Financial. The financial statements of
the mutual funds controlled by ReliaStar Financial are separately filed with the
Securities and Exchange Commission.
ITEM 27. NUMBER OF CONTRACT OWNERS
As of May 1, 2000, there were 0 owners of Contracts, including 0 owners of
qualified Contracts.
ITEM 28. INDEMNIFICATION
Reference is hereby made to Section 5.01 of Depositor's Bylaws, filed as an
Exhibit to this Registration Statement. The Bylaws of Depositor mandate
indemnification by Depositor of its directors, officers and certain others,
including directors, officers, employees and agents of Management, under certain
conditions. Section 4.01 of the Bylaws mandates indemnification by Management of
its directors and officers under certain conditions. Insofar as indemnification
for liabilities arising under the Securities Act of 1933 may be permitted to
directors, officers and controlling persons of Depositor or Management, pursuant
to the foregoing provisions or otherwise, Depositor and Management have been
advised that in the opinion of the Securities and Exchange Commission such
indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by Depositor of expenses incurred or
paid by a director or officer or controlling person of Depositor or Management
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person of Depositor or Management in connection
with the securities being registered, Depositor or Management, as the case may
be, will, unless in the opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate jurisdiction the
question of whether or not 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>
An insurance company blanket bond is maintained providing $25,000,000
coverage for Depositor and Management, subject to a $500,000 deductible.
ITEM 29. PRINCIPAL UNDERWRITERS
(a) WSSI is the principal underwriter of the Contracts. WSSI also acts as
the principal underwriter of other variable annuity contracts issued by
Depositor through the ReliaStar Select Variable Account; flexible premium
variable life insurance contracts issued by Depositor through Select-Life
Variable Account, a separate account of Depositor registered as a unit
investment trust under the Investment Company Act of 1940; variable annuity
contracts issued by Northern Life Insurance Company ("Northern"), a subsidiary
of Depositor, through Separate Account One, a separate account of Northern
registered as a unit investment trust under the Investment Company Act of 1940;
and flexible premium variable life and variable annuity contracts issued by
ReliaStar Life Insurance Company of New York ("RLNY"), an indirect subsidiary of
Depositor, through ReliaStar Life Insurance Company of New York Variable Life
Separate Account I and ReliaStar Life Insurance Company of New York Variable
Annuity Separate Account II, separate accounts of RLNY registered as unit
investment trusts under the Investment Company Act of 1940.
(b) The directors and officers of WSSI are as follows:
NAME POSITIONS AND OFFICES WITH WSSI
- ---- -------------------------------
Wayne R. Huneke Director
Robert C. Salipante Director
Jeffrey A. Montgomery Director, President, and Chief Operating Officer
Susan M. Bergen Secretary
Kenneth S. Cameranesi Executive Vice President and Chief Operations Officer
Gene Grayson Vice President -- National Sales and Marketing
Keith Loveland Vice President and Chief Compliance Officer
David A. Sheridan Vice President
Margaret B. Wall Vice President
Daniel S. Kuntz Assistant Vice President and Treasurer
Loralee A. Renelt Assistant Secretary
Allen L. Kidd Assistant Secretary
The principal business address of each of the foregoing executive officers
is 20 Washington Avenue South, Minneapolis, Minnesota 55401, except for the
following individuals whose principal business addresses are listed after their
respective names: David A. Sheridan, 20 Security Drive, Avon, Connecticut 06001;
Allen L. Kidd, 222 North Arch Road, Richmond, Virginia 23236.
(c) For the year ended December 31, 1999, WSSI received $0 in fees in
connection with distribution of Contracts. WSSI received $1,457,606 in
connection with sales of other contracts issued by the Variable Account.
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
The accounts and records of Registrant are located at the offices of
Depositor at 20 Washington Avenue South, Minneapolis, Minnesota 55401.
ITEM 31. MANAGEMENT SERVICES
Not applicable.
ITEM 32. UNDERTAKINGS
Registrant will file a post-effective amendment to this Registration
Statement as frequently as is necessary to ensure that the audited financial
statements in this Registration Statement are never more than 16 months old for
so long as payments under the Contracts may be accepted.
Registrant will include either (1) as part of any application to purchase a
Contract offered by the Prospectus, a space that an applicant can check to
request a Statement of Additional Information, or (2) a postcard or similar
written communication affixed to or included in the Prospectus that the
applicant can remove to send for a Statement of Additional Information.
Registrant will deliver any Statement of Additional Information and any
financial statements required to be made available under this form promptly upon
written or oral request.
The Depositor and the Registrant rely on a no-action letter issued by the
Division of Investment Management to the American Council of Life Insurance on
November 28, 1988 and represent that the conditions enumerated therein have been
or will be compiled with.
The Depositor represents that the fees and charges deducted under the
Contract in the aggregate are reasonable in relation to the services rendered,
the expenses expected to be incurred, and the risks assumed by ReliaStar Life
Insurance Company.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, Registrant has caused this Pre-effective Amendment No. 1 to Registration
Statement to be signed on its behalf, in the City of Minneapolis and State of
Minnesota, on this 19th day of May, 2000.
RELIASTAR SELECT VARIABLE ACCOUNT
(Registrant)
By RELIASTAR LIFE INSURANCE COMPANY
(Depositor)
By /S/ JOHN G. TURNER
--------------------------------------
John G. Turner
Chairman and Chief Executive Officer
As required by the Securities Act of 1933 and the Investment Company Act of
1940, Depositor has caused this Pre-effective Amendment No. 1 to Registration
Statement to be signed on its behalf, in the City of Minneapolis and State of
Minnesota, on this 19th day of May, 2000.
RELIASTAR LIFE INSURANCE COMPANY
(Depositor)
By /S/ JOHN G. TURNER
--------------------------------------
John G. Turner
Chairman and Chief Executive Officer
As required by the Securities Act of 1933, this Pre-effective Amendment No. 1 to
Registration Statement has been signed on this 19th day of May, 2000 by the
following directors and officers of Depositor in the capacities indicated:
/S/ JOHN G. TURNER Chairman and Chief Executive Officer
- -----------------------------------
John G. Turner
/S/ JAMES R. MILLER Senior Vice President, Chief Financial
- ----------------------------------- Officer and Treasurer
James R. Miller
*Richard R. Crowl *Mark S. Jordahl *James R. Miller
*Michael J. Dubes *Kenneth U. Kuk *Robert C. Salipante
*Wayne R. Huneke *Susan W. A. Mead *John G. Turner
*Dewette Ingham *William R. Merriam
- -----------------
*A majority of the Board of Directors
Stewart D. Gregg, by signing his name hereto, does hereby sign this document on
behalf of each of the above-named directors of ReliaStar Life Insurance Company
pursuant to powers of attorney duly executed by such persons.
/S/ STEWART D. GREGG
---------------------------------------
Stewart D. Gregg, Attorney-In-Fact
II-1
<PAGE>
EXHIBIT INDEX
EX-99.4b Purchase Payment Credit Endorsement.
EX-99.4c Allocation of Purchase Payment Endorsement.
EX-99.5b Form of Supplemental Application.
EX-99.8a Form of letter amending the Participation Agreement.
Form of Notice of Assignment of the Participation Agreement and
Consent.
EX-99.9 Consent and Opinion of Stewart D. Gregg as to the legality of the
securities being registered.
EX-99.10 Independent Auditors' Consent.
EXHIBIT 99.4b
Purchase Payment Credit Endorsement
This endorsement is a part of the Flexible Premium Individual Deferred
Retirement Annuity (Contract) to which it is attached. This endorsement is in
addition to your Contract and does not replace any provision thereof.
Purchase Payment Credit
A credit will be allocated to your Contract Value at the same time that we
allocate your purchase payment. The amount of the credit is a percentage of the
purchase payment. The percentage is equal to the Purchase Payment Credit
Percentage and is shown on the Contract Data Page. The Purchase Payment Credit
Percentage is guaranteed for the first two contract years. It may increase or
decrease after that time. Credits are allocated to the same investment options
based on the same percentages used to allocate your purchase payments. The
credit is subject to recovery by us in certain limited circumstances. Credits
are not considered purchase payments or earnings for any purpose.
We will allocate a credit to each purchase payment made when the Contract is
owned by a natural person and the Owner is (or in the case of multiple Owners,
all Owners are) age 80 or less when the purchase payment is received. When the
Contract is owned by an entity, we will allocate a credit to each purchase
payment made when the Annuitant is age 80 or less. If the Contract is a
qualified plan, we allocate a credit to each purchase payment made when the
Owner is age 70 or less.
Recovery of Purchase Payment Credit
We will recover an amount of credits as described below in any of the following
circumstances:
1.
We will recover all credits if you cancel the Contract during the Right to
Return Period.
2.
We will recover all credits allocated with respect to purchase payments made
within three years of an election to receive Fixed Annuity Payments or Variable
Annuity Payments.
3.
If we waive Contingent Deferred Sales Charges under a Waiver of Contingent
Deferred Sales Charge Rider or a Partial Waiver of Contingent Deferred Sales
Charge Rider, we will recover a proportionate percentage of any credit allocated
with respect to purchase payments made within 36 months of the date of the
surrender request. Proportionate percentage is equal to the amount of Contract
Value surrendered divided by the total Contract Value before the surrender.
4.
We will recover credits allocated with respect to purchase payments made within
12 months of the date of death of the Owner. For purposes of calculating the
amount of Death Benefit in the Death Benefit Before the Annuity Commencement
Date provision, we will reduce the Contract Value by the amount of any credits
allocated with respect to purchase payments made within 12 months of the date of
death of the Owner.
<PAGE>
Effective Date
This endorsement is effective as of the Issue Date.
General Provisions
This endorsement is subject to all the exclusions, definitions, and provisions
of the Contract which are not inconsistent herewith. In the event of conflict,
this endorsement overrides the Contract.
[RELIASTAR logo]
ReliaStar Life Insurance Company
Box 20
Minneapolis
Minnesota 55440
Executed at our Home Office
- --------------------------------------------
Robert C. Salipante President
- --------------------------------------------
/s/ Robert C. Salipante
- --------------------------------------------
Susan M. Bergen Secretary
- --------------------------------------------
/s/ Susan M. Bergen
EXHIBIT 99.4c
Allocation of Purchase Payments Endorsement
This endorsement is a part of the Flexible Premium Individual Deferred
Retirement Annuity (Contract) to which it is attached. This endorsement is in
addition to your Contract and does not replace any provision thereof.
Allocation of Purchase Payments
If you reside in a state that requires the full return of purchase payments
during the free look period (Right to Return Contract), we will direct your
initial purchase payments as follows. Purchase payments received prior to the
Initial Purchase Payment Transfer Date, as shown on the Contract Data Page, will
be allocated to the Money Market Sub-account on the later of:
1.
The Issue Date, or
2.
The date we receive your purchase payments.
On the Valuation Date on or next following the Initial Purchase Payment Transfer
Date, the Contract Value in the Money Market Sub-account will be transferred to
the Fixed Account and the Sub-accounts of the Variable Account as you designated
on the application for this Contract, and as shown on the Contract Data Page.
If you cancel your Contract prior to the Initial Purchase Payment Transfer Date,
we will refund the larger of:
1.
Your purchase payments, or
2.
The Contract Value.
On or after the Initial Purchase Payment Transfer Date, we will credit the
purchase payments to the Fixed Account and Sub-accounts of the Variable Account
as designated by you on the Contract application or any subsequent instructions.
[RELIASTAR logo]
ReliaStar Life Insurance Company
Box 20
Minneapolis
Minnesota 55440
Executed at our Home Office
- -----------------------------------------------
Robert C. Salipante President
- -----------------------------------------------
/s/ Robert C. Salipante
- -----------------------------------------------
Susan M. Bergen Secretary
- -----------------------------------------------
/s/ Susan M. Bergen
EXHIBIT 99.5b
Supplement to RELIASTAR [logo]
Variable Annuity Application ReliaStar Life Insurance Company
P.O. Box 5050, Minot, ND 58702-5050
Allocation of Premium Payments: Allocation must be in whole percentage points
totaling 100%.
<TABLE>
<S> <C> <C>
JANUS ASPEN SERIES OCC ACCUMULATION TRUST
a. __% Fixed Account (SFA) n. __% Aggressive Growth cc. __% Equity Portfolio (OEP)
Portfolio (JAN)
o. __% Growth Portfolio (JGN) dd. __% Global Equity Portfolio
AIM VARIABLE INSURANCE p. __% International Growth (OGE)
PRODUCTS FUND, INC. Portfolio (JIN) ee. __% Managed Portfolio
b. __% AIM V.I. Dent q. __% Worldwide Growth (OMP)
Demographic Trends Portfolio (JWN) ff. __% Small Cap Portfolio
Fund (ADT) (OSC)
NEUBERGER BERMAN
THE ALGER AMERICAN FUND ADVISERS MANAGEMENT OTHER INVESTMENT
c. __% Alger American Growth TRUST COMPANIES/FUNDS
Portfolio (AGR) r. __% Limited Maturity Bond
d. __% Alger American Portfolio (NLM) Specify both the investment
Leveraged AllCap s. __% Partners Portfolio (NPP) company and fund names.
Portfolio (ALA) t. __% Socially Responsive
e. __% Alger American MidCap Portfolio (NSR) gg. __% _____________________
Growth Portfolio (AMG)
f. __% Alger American Small PILGRIM VARIABLE PRODUCTS
Capitalization Portfolio TRUST
(ASC) u. __% VP Growth Opportunities hh. __% _____________________
Portfolio (PGO)
FIDELITY VARIABLE v. __% VP Growth + Value
INSURANCE PRODUCTS FUND Portfolio (NGF) ii. __% _____________________
g. __% VIP Equity Income w. __% VP High Yield Bond
Portfolio (FES) Portfolio (NHY)
h. __% VIP Growth Portfolio x. __% VP International Value jj. __% _____________________
(FGS) Portfolio (NIV)
i. __% VIP High Income Portfolio y. __% VP MagnaCap Portfolio
(FHIS) (PMP)
j. __% VIP Money Market z. __% VP MidCap Opportunities
Portfolio (FMM) Portfolio (PMO)
aa. __% VP Research enhanced
FIDELITY VARIABLE INSURANCE Index Portfolio (NMS)
PRODUCTS FUND II bb. __% VP SmallCap
k. __% VIP II Contrafund Opportunities Portfolio
Portfolio (FCS) (NIG)
l. __% VIP II Index 500 Portfolio
(FIN)
m. __% VIP II Investment Grade
Bond Portfolio (FIG)
</TABLE>
We will allocate all future payments as shown above. You may change this
allocation by giving us written notice.
I understand and agree that this supplement is part of my application for a
variable annuity and will be considered part of my Contract with ReliaStar Life
Insurance Company.
Date Signature of Agent Signature of Proposed Contract Owner
EXHIBIT 99.8a
March 27, 2000
By Express Delivery
Stewart D. Gregg, Esq.
ReliaStar Life Insurance Company
Washington Square Securities, Inc.
20 Washington Avenue South
Minneapolis Minnesota, 55401
RE: ELECTRONIC DELIVERY OF AVIF PROSPECTUS
Dear Mr. Gregg:
You have asked for our consent to permit ReliaStar Life Insurance
Company ("LIFE COMPANY"), Washington Square Securities, Inc. ("UNDERWRITER") or
their respective duly authorized agents to disseminate the prospectuses and
periodic reports of certain series of AIM Variable Insurance Funds, Inc.
("AVIF") using the following electronic means: Internet, CD-ROM, and/or computer
diskette (such dissemination by these electronic means is hereinafter referred
to as "electronic delivery").
As you know, pursuant to the Participation Agreement dated March 27,
2000 (the "Participation Agreement"), among LIFE COMPANY, UNDERWRITER, AVIF and
A I M Distributors, Inc. ("AIM"), AVIF provides LIFE COMPANY with the current
prospectus and periodic reports of its series listed on Schedule A to the
Participation Agreement and any supplements thereto (collectively,
"Prospectus").
AVIF and AIM provide indemnification to LIFE COMPANY and UNDERWRITER
and certain related parties pursuant to Section 12.2 of the Participation
Agreement. Pursuant to these indemnification provisions, AVIF and AIM agree to
indemnify for certain losses that arise out of or are based upon, among other
things, material misstatements in, or material omissions from, AVIF's
Prospectus.
AVIF and AIM assume the foregoing indemnification responsibilities only
insofar as they retain control of the use, form and content of the Prospectus.
Therefore, AVIF and AIM consent to the electronic delivery of AVIF's Prospectus
LIFE COMPANY, UNDERWRITER, or their respective agents, and agree to continue to
assume the foregoing indemnification responsibilities, all subject to the
following conditions:
* Notwithstanding any provision of the Participation Agreement to
the contrary, LIFE COMPANY and UNDERWRITER assume legal
responsibility for the electronic delivery of the Prospectus and
represent and warrant that they shall perform such electronic
delivery in accordance with all applicable law. For this
purpose, LIFE COMPANY and UNDERWRITER agree, without limitation,
<PAGE>
March 27, 2000
Page 2 of 3
* to provide adequate notice of and access to the Prospectus, and
obtain evidence of the delivery of the same, in accordance with
applicable law and published positions of the Securities and
Exchange Commission and its staff;
* Notwithstanding any provision of the Participation Agreement to
the contrary, LIFE COMPANY and UNDERWRITER assume legal
responsibility for any changes by any person to the form or
content of the Prospectus that may be made, whether purposefully
or inadvertently (excluding changes made at the direction of,
and in conformity with, written instructions of AVIF or AIM or
their respective agents), from the version of AVIF's Prospectus
provided by AVIF to LIFE COMPANY pursuant to the Participation
Agreement (which may be an electronic version). For this
purpose, LIFE COMPANY and UNDERWRITER agree that any version of
the Prospectus that they prepare or modify to facilitate
electronic delivery shall conform in all respects to the version
provided to them by AVIF or AIM and that AVIF and AIM shall have
no responsibility for verifying the same.
* In addition to the indemnification they each provide to AVIF,
AIM, and certain related parties pursuant to the Participation
Agreement, LIFE COMPANY and UNDERWRITER each agree to indemnify
and hold harmless AVIF and AIM and certain related parties
specified in Section 12.1 of the Participation Agreement, to the
same extent provided in Section 12.1, with respect to the
foregoing conditions.
AVIF's and AIM's consents described above relate only to the electronic
delivery of the Prospectus and do not render inapplicable any provision of the
Participation Agreement except as specifically noted herein. AVIF and AIM each
reserve the right, in its sole discretion, to withdraw its consent.
This Agreement shall amend the Participation Agreement to the extent
described herein. Please indicate your understanding and acceptance of this
Agreement by executing the enclosed copy of this letter and returning it to us.
Very truly yours,
AIM VARIABLE INSURANCE FUNDS, INC.
By:
-----------------------------------
Title:
-----------------------------------
A I M DISTRIBUTORS, INC.
By:
-----------------------------------
Title:
-----------------------------------
<PAGE>
March 27, 2000
Page 3 of 3
Acknowledged and accepted:
RELIASTAR LIFE INSURANCE COMPANY
By:
-----------------------------------
Title:
-----------------------------------
WASHINGTON SQUARE SECURITIES, INC.
By:
-----------------------------------
Title:
-----------------------------------
<PAGE>
April 27, 2000
VIA FEDERAL EXPRESS
Stewart D. Gregg, Esq.
ReliaStar Life Insurance Company
20 Washington Avenue South
Minneapolis, MN 55401
Re: Notice of Assignment and Consent
Dear Mr. Gregg:
ReliaStar Life Insurance Company and AIM Variable Insurance Funds, Inc. are
parties to a Participaiton Agreement dated December 14, 1999 (the "Agreement").
On May 1, 2000, AIM Variable Insurance Funds, Inc., a Maryland corporation, will
be reorganized into AIM Variable insurance Funds, a Delaware business trust. AIM
Variable insurance Funds will succeed to all the rights and obligations of AIM
Variable Insurance Funds, Inc. This reorganization will result in a technical
change of control of AIM Variable insurance Funds, Inc. and thus an assignment
of the Agreement.
Such assignment requires the consent of the parties. Accordingly, AIM Variable
Insurance Funds, Inc. requests that you PROVIDE YOUR CONSENT TO THE ASSIGNMENT
OF THE AGREEMENT AS DESCRIBED ABOVE BY SIGNING WHERE INDICATED BELOW AND
RETURNING ONE MANUALLY EXECUTED COPY OF THIS LETTER TO LAURIE HOLLIS NO LATER
THAN MAY 8, 2000. THIS LETTER SHALL CONSTITUTE AN AMENDMENT TO THE AGREEMENT
EFFECTIVE MAY 1, 2000.
<PAGE>
Thank you for your prompt attention and assistance in this matter. If you have
any questions, please call Laurie Hollis at 713-214-1785.
Sincerely,
/s/ Carol F. Relihan
Carol F. Relihan
Senior Vice President
ACKNOWLEDGED AND AGREED:
By:
----------------------------------
Name:
--------------------------------
Title:
-------------------------------
Date:
--------------------------------
EXHIBIT 99.9
ATTORNEY'S OPINION AND CONSENT
May 19, 2000
ReliaStar Life Insurance Company
20 Washington Avenue South
Minneapolis, Minnesota 55401
Madam/Sir:
In connection with the proposed registration under the Securities Act of
1933, as amended, of individual variable annuity contracts (the "Contracts") and
interests in ReliaStar Select Variable Account (the "Separate Account"), I have
examined documents relating to the establishment of the Separate Account by the
Board of Directors of ReliaStar Life Insurance Company (the "Company") as a
separate account for assets applicable to variable annuity contracts, pursuant
to Minnesota Statutes Sections 61A.13 to 61A.21, as amended, and the
Pre-effective Amendment No. 1 to the Registration Statement on Form N-4, File
No. 333-30614 (the "Registration Statement"), and I have examined such other
documents and have reviewed such matters of law as I deemed necessary for this
opinion, and I advise you that in my opinion:
1. The Separate Account is a separate account of the Company duly created
and validly existing pursuant to the laws of the State of Minnesota.
2. The contracts, when issued in accordance with the Prospectus
constituting a part of the Registration Statement and upon compliance
with applicable local law, will be legal and binding obligations of
the Company in accordance with their respective terms.
3. The portion of the assets held in the Separate Account equal to
reserves and other contract liabilities with respect to the Separate
Account are not chargeable with liabilities arising out of any other
business the Company may conduct.
I consent to the filing of this opinion as an exhibit to the Registration
Statement and to the references to me wherever appearing therein.
Very truly yours,
/S/ STEWART D. GREGG
- ---------------------------
Stewart D. Gregg, Counsel
EXHIBIT 99.10
INDEPENDENT AUDITORS' CONSENT
Board of Directors
ReliaStar Select Variable Account
We consent to the incorporation by reference in this Pre-Effective Amendment No.
1 to Registration Statement No. 333-30614 on Form N-4 of the ReliaStar Select
Variable Account under the Securities Act of 1933, and Amendment No. 1 to the
Registration Statement under the Investment Company Act of 1940, respectively,
of our report dated February 18, 2000 related to the financial statements of
ReliaStar Select Variable Account as of December 31, 1999 and for each of the
two years in the period then ended, and our report dated February 1, 2000
related to the consolidated financial statements of ReliaStar Life Insurance
Company for the years ended December 31, 1999 and 1998 incorporated by reference
in the Statement of Additional Information of such Registration Statement, and
to the references to us under the heading "Experts" appearing in the Prospectus
and under the heading "Experts" appearing in the Statement of Additional
Information, all of which are part of such Registration Statement.
/s/ Deloitee & Touche, LLP
Minneapolis, Minnesota
May 18, 2000
