ANCHOR NATIONAL LIFE INSURANCE CO, POS AM, 2000-04-18

ANCHOR NATIONAL LIFE INSURANCE CO
POS AM, 2000-04-18

Previous: ANCHOR NATIONAL LIFE INSURANCE CO, POS AM, 2000-04-18

Next: AMBASSADOR FOOD SERVICES CORP, 10QSB/A, 2000-04-18

<PAGE> 1

As filed with the Securities and Exchange Commission on April 18, 2000

Registration No. 33-87864
- --------------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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

POST-EFFECTIVE AMENDMENT NO. 15 ON
FORM S-3 TO FORM S-1
ON FORM S-3 UNDER
THE SECURITIES ACT OF 1933

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

ANCHOR NATIONAL LIFE INSURANCE COMPANY
(Exact name of registrant as specified in its charter)

California 6311 86-0198983
(State or other (Primary Standard (I.R.S. Employer
jurisdiction of Industrial Classification Identification No.)
incorporation or Number) organization)

1 SunAmerica Center
Los Angeles, California 90067-6022
(310) 772-6000
(Address, including zip code, and telephone number,
including area code, or registrant's
principal executive offices)

Susan L. Harris, Esquire
Anchor National Life Insurance Company
1 SunAmerica Center
Los Angeles, California 90067-6022
(310) 772-6000
(Name, address, including zip code, and telephone number, including area code
of agent for service)

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

Approximate date of commencement of proposed sale to the public: As soon
after the effective date of this Registration Statement as is practicable.

If the only securities being registered on this form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]

If any of the securities being registered on this form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [X]

If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ] _______________

If this form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ] _______________

If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]

----------------------
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),
shall determine.

================================================================================
<PAGE> 2

[POLARIS LOGO]

THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD
KNOW AND CONSIDER BEFORE PURCHASING THE POLARIS VARIABLE ANNUITY. THE ANNUITY IS
MORE FULLY DESCRIBED IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY.

May 1, 2000

- ----------------------------------------------------------------
- ----------------------------------------------------------------
1. THE POLARIS VARIABLE ANNUITY
- ----------------------------------------------------------------
- ----------------------------------------------------------------

The Polaris Variable Annuity is a contract between you and Anchor National Life
Insurance Company. It is designed to help you invest on a tax-deferred basis and
meet long-term financial goals, such as retirement funding. Tax deferral means
all your money, including the amount you would otherwise pay in current income
taxes, remains in your contract to generate more earnings. Your money could grow
faster than it would in a comparable taxable investment.

Polaris offers a diverse selection of money managers and investment options. You
may divide your money among any or all 27 variable portfolios and 5 fixed
account options. To the extent you invest in the variable portfolios, your
investment is not guaranteed. The value of your Polaris contract can fluctuate
up and down, based on the performance of the underlying investments you select
and you may experience a loss.

The variable portfolios offer professionally managed investment choices with
goals ranging from capital preservation to aggressive growth. Your choices for
the various investment options are found on the next page.

The contract also offers 5 fixed account options, for different time periods.
Each may have a different interest rate. Interest rates are guaranteed by Anchor
National.

Like most annuities, the contract has an accumulation phase and an income phase.
During the accumulation phase, you invest money in your contract. Your earnings
are based on the investment performance of the variable portfolios to which your
money is allocated and/or the interest rate(s) earned on the fixed account
option(s) in which you invest. You may withdraw money from your contract during
the accumulation phase. However, as with other tax-deferred investments, you
will pay taxes on earnings and untaxed contributions when you withdraw them. A
federal tax penalty may apply if you make withdrawals before age 59 1/2.

During the income phase, you may receive income payments from your annuity. Your
income payments may be fixed in dollar amount, vary with investment performance
or a combination of both, depending on where your money is allocated. Among
other factors, the amount of money you are able to accumulate in your contract
during the accumulation phase will affect the amount of your income payments
during the income phase.
- ----------------------------------------------------------------
- ----------------------------------------------------------------
2. INCOME OPTIONS
- ----------------------------------------------------------------
- ----------------------------------------------------------------

You can select from one of five income options:

(1) payments for your lifetime;

(2) payments for your lifetime and your survivor's lifetime;

(3) payments for your lifetime and your survivor's lifetime, but for not less
than 10 or 20 years;

(4) payments for your lifetime, but for not less than 10 or 20 years; and

(5) payments for a specified period of 5 to 30 years.

You will also need to decide when your income payments begin and if you want
your income payments to fluctuate with investment performance or remain
constant. Once you begin receiving income payments, you cannot change your
income option.

If your contract is part of a non-qualified retirement plan (one that is
established with after-tax dollars), payments during the income phase are
considered partly a return of your original investment. The "original
investment" part of each payment is not taxable as income. For contracts which
are part of a qualified retirement plan using before-tax dollars, the entire
income payment is taxable as income.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
3. PURCHASING A POLARIS VARIABLE
ANNUITY CONTRACT
- ----------------------------------------------------------------
- ----------------------------------------------------------------

You can buy a contract through your financial representative, who can also help
you complete the proper forms. For non-qualified contracts, the minimum initial
purchase payment is $5,000 and subsequent amounts of $500 or more may be added
to your contract at any time during the accumulation phase. For qualified
contracts, the minimum initial purchase payment is $2,000 and subsequent amounts
of $250 or more may be added to your contract at any time during the
accumulation phase.
<PAGE> 3

----------------------------------------------------------------
----------------------------------------------------------------
4. INVESTMENT OPTIONS
----------------------------------------------------------------
----------------------------------------------------------------

You may allocate money to the following variable portfolios of the Anchor Series
Trust and/or the SunAmerica Series Trust:

ANCHOR SERIES TRUST
MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP
- Capital Appreciation Portfolio
- Growth Portfolio
- Natural Resources Portfolio
- Government and Quality Bond Portfolio

SUNAMERICA SERIES TRUST
MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.
- Global Equities Portfolio
- Alliance Growth Portfolio
- Growth-Income Portfolio
MANAGED BY DAVIS SELECTED ADVISERS, L.P.

- Davis Venture Value Portfolio

- Real Estate Portfolio
MANAGED BY FEDERATED INVESTORS
- Federated Value Portfolio
- Utility Portfolio
- Corporate Bond Portfolio
MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/ GOLDMAN SACHS ASSET MANAGEMENT
INTERNATIONAL
- Asset Allocation Portfolio
- Global Bond Portfolio
MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY
- MFS Mid-Cap Growth
- MFS Growth and Income Portfolio
- MFS Total Return Portfolio
MANAGED BY MORGAN STANLEY ASSET MANAGEMENT
- International Diversified Equities Portfolio
- Worldwide High Income Portfolio
MANAGED BY PUTNAM INVESTMENT MANAGEMENT, INC.
- Putnam Growth Portfolio
- International Growth and Income Portfolio
- Emerging Markets Portfolio
MANAGED BY SUNAMERICA ASSET MANAGEMENT CORP.
- Aggressive Growth Portfolio
- "Dogs" of Wall Street Portfolio
- SunAmerica Balanced Portfolio
- High-Yield Bond Portfolio
- Cash Management Portfolio

You may also allocate money to the 1 year fixed account option or the 3, 5, 7
and 10-year market value adjustment ("MVA") fixed account options.

The interest rates applicable for these fixed account options may differ from
time to time, however, we will never credit less than a 3% annual effective
rate. Once established, the rate will not change during the selected period.
Your contract value will be adjusted up or down for withdrawals or transfers
from the 3, 5, 7 and 10-year fixed account options prior to the end of the
guarantee period.
----------------------------------------------------------------
----------------------------------------------------------------
5. EXPENSES
----------------------------------------------------------------
----------------------------------------------------------------

Each year, we deduct a $35 contract maintenance fee ($30 in North Dakota) from
your contract. We also deduct insurance charges which equal 1.52% annually of
the average daily value of your contract allocated to the variable portfolios.

As with other professionally managed investments, there are investment charges
imposed on contracts with money allocated to the variable portfolios. We
estimate these fees to range from .53 to 1.90.

If you take money out of your contract, you may be assessed a withdrawal charge
which is a percentage of the money you withdraw. The percentage declines over
the time the money is in the contract.

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------
YEAR 1 2 3 4 5 6 7 8
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WITHDRAWAL
CHARGE 7% 6% 5% 4% 3% 2% 1% 0%
- -----------------------------------------------------------------------------------------
</TABLE>

Each year, you are allowed to make 15 transfers without charge. After your first
15 free transfers, a $25 transfer fee ($10 in Pennsylvania and Texas) applies to
each subsequent transfer.

In a limited number of states, you may also be assessed a state premium tax of
up to 3.5% depending upon the state.

The following chart is designed to help you understand the charges in your
contract. The column "Total Annual Charges" shows the total of the 1.52%
insurance charges, the $35 contract maintenance fee and the investment charges
for each variable portfolio. We converted the contract maintenance fee to a
percentage using an assumed contract size of $40,000. The actual impact of this
charge on your contract may differ from this percentage.

The next two columns show two examples of the charges you would pay under the
contract. The examples assume that you invested $1,000 in a contract which earns
5% annually and that you withdraw your money: (1) at the end of year 1, and (2)
at the end of year 10. The premium tax is assumed to be 0% in both examples.
<PAGE> 4

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------
EXAMPLES:
TOTAL ANNUAL TOTAL ANNUAL TOTAL EXPENSES TOTAL EXPENSES
INSURANCE INVESTMENT TOTAL ANNUAL AT END OF AT END OF
ANCHOR SERIES TRUST PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital Appreciation 1.61% .67% 2.28% $ 93 $258
Growth 1.61% .73% 2.34% $ 93 $264
Natural Resources 1.61% 1.00% 2.61% $ 96 $272
Government and Quality Bond 1.61% .66% 2.27% $ 93 $257
- ----------------------------------------------------------------------------------------------------------------------------
SUNAMERICA SERIES TRUST PORTFOLIO
Emerging Markets* 1.61% 1.90% 3.51% $105 $375
International Diversified Equities 1.61% 1.22% 2.83% $ 98 $312
Global Equities 1.61% .84% 2.45% $ 94 $275
International Growth and Income* 1.61% 1.21% 2.82% $ 98 $311
Aggressive Growth* 1.61% .75% 2.36% $ 94 $266
MFS Mid-Cap Growth 1.61% 1.15% 2.76% $ 98 $305
Real Estate* 1.61% .92% 2.53% $ 95 $283
Putnam Growth 1.61% .80% 2.41% $ 94 $271
MFS Growth and Income(1) 1.61% .75% 2.36% $ 94 $266
Alliance Growth 1.61% .63% 2.24% $ 92 $254
"Dogs" of Wall Street* 1.61% .67% 2.28% $ 93 $258
Davis Venture Value 1.61% .74% 2.35% $ 93 $265
Federated Value* 1.61% .77% 2.38% $ 94 $268
Growth-Income 1.61% .56% 2.17% $ 92 $247
Utility* 1.61% .84% 2.45% $ 94 $275
Asset Allocation 1.61% .63% 2.24% $ 92 $254
MFS Total Return(2) 1.61% .75% 2.36% $ 94 $266
SunAmerica Balanced* 1.61% .66% 2.27% $ 93 $257
Worldwide High Income 1.61% 1.12% 2.73% $ 97 $302
High-Yield Bond 1.61% .67% 2.28% $ 93 $258
Corporate Bond 1.61% .71% 2.32% $ 93 $262
Global Bond 1.61% .84% 2.45% $ 94 $275
Cash Management 1.61% .53% 2.14% $ 91 $243
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>

* For these Portfolios, the adviser, SunAmerica Asset Management Corp., has
voluntarily agreed to waive fees or reimburse expenses, if necessary, to keep
operating expenses at or below an established maximum amount. All waivers or
reimbursements may be terminated at any time. For more detailed information,
see the Fee Tables and Examples in the prospectus.
(1) Formerly named Growth/Phoenix and managed by Phoenix Investment Counsel,
Inc.
(2) Formerly named Balanced/Phoenix and managed by Phoenix Investment Counsel,
Inc.

----------------------------------------------------------------
----------------------------------------------------------------
6. TAXES
----------------------------------------------------------------
----------------------------------------------------------------

Unlike taxable investments where earnings are taxed in the year they are earned,
taxes on amounts earned in a non-qualified contract are deferred until they are
withdrawn. In a qualified contract, all amounts are taxable when they are
withdrawn.

When you begin taking distributions or withdrawals from your contract, earnings
are considered to be taken out first and will be taxed at your ordinary income
rate. You may be subject to a 10% federal tax penalty for distributions or
withdrawals before age 59 1/2.
----------------------------------------------------------------
----------------------------------------------------------------
7. ACCESS TO YOUR MONEY
----------------------------------------------------------------
----------------------------------------------------------------

During the first year, you may withdraw free of a withdrawal charge an amount
that is equal to the penalty-free earnings in your contract as of the date you
make the withdrawal or, if you participate in the systematic withdrawal program,
you may withdraw 10% of your total invested amount less any withdrawals made
during the year. The penalty-free earnings amount is calculated by taking the
value of your contract on the day you make the withdrawal and subtracting your
total invested amount. After the first year, your maximum free withdrawal amount
is the greater of: (1) the penalty-free earnings or (2) 10% of your total
invested amount that has been invested for at least one year, less any
withdrawals made during the year. Withdrawals in excess of these limits will be
assessed a withdrawal charge.

If you withdraw your entire contract value, you will not receive the benefit of
any free withdrawal amount. After your money has been in the contract for seven
full years, there are no withdrawal charges on that portion of the money that
you have invested for at least seven full years.

----------------------------------------------------------------
----------------------------------------------------------------
8. PERFORMANCE
----------------------------------------------------------------
----------------------------------------------------------------

When you invest in the Polaris Variable Annuity, your money is actually invested
in the underlying portfolios of the Anchor Series Trust and/or the SunAmerica
Series Trust. The value of your annuity will fluctuate depending upon the
investment performance of the portfolio(s) you choose.

The following chart shows total returns for each portfolio for the time periods
shown. These numbers reflect the insurance charges, the contract maintenance fee
and the investment charges. Withdrawal charges are not reflected in the chart.
Past performance is no guarantee of future results.
<PAGE> 5

<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
CALENDAR YEAR
ANCHOR SERIES TRUST PORTFOLIO 1999 1998 1997 1996 1995
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Capital Appreciation 65.32% 20.30% 23.50% 23.17% 32.41%
Growth 24.98% 26.98% 28.36% 23.06% 24.30%
Natural Resources 39.26% (18.80)% (10.10)% 12.20% 15.45%
Gov't and Quality Bond (3.16)% 7.42% 7.82% 1.35% 17.49%
- -----------------------------------------------------------------------------------------------------------------------------
SUNAMERICA SERIES TRUST
PORTFOLIO
Emerging Markets 74.58% (25.56)% (17.37)%* -- --
Int'l Diversified Equities 22.61% 16.62% 4.71% 7.59% 8.52%
Global Equities 28.90% 20.90% 13.25% 12.37% 17.33%
Int'l Growth and Income 22.31% 9.05% 5.36%* -- --
Aggressive Growth 81.81% 15.58% 10.55% 4.33%*** --
MFS Mid-Cap Growth 63.04 %*** -- -- -- --
Real Estate (8.94)% (16.72)% 17.16%* -- --
Putnam Growth 27.71% 32.63% 30.41% 18.46% 22.83%
MFS Growth and Income(1) 4.30% 27.26% 21.28% 14.12% 30.12%
Alliance Growth 31.05% 49.85% 29.41% 27.10% 41.58%
"Dogs" of Wall Street (8.55)% (1.81)%** -- -- --
Davis Venture Value 14.34% 11.98% 32.21% 22.86% 35.36%
Federated Value 4.54% 16.07% 29.37% 7.32%*** --
Growth-Income 28.05% 28.76% 31.85% 22.11% 31.95%
Utility .17% 12.24% 23.78% 8.26%*** --
Asset Allocation 7.78% 1.69% 19.93% 17.05% 24.33%
MFS Total Return(2) 1.26% 17.65% 15.09% 8.18% 25.51%
SunAmerica Balanced 19.51% 22.70% 22.52% 9.39%*** --
Worldwide High Income 17.37% (18.44)% 13.72% 23.38% 19.04%
High-Yield Bond 4.85% (4.50)% 12.66% 12.71% 12.44%
Corporate Bond (3.39)% 4.31% 9.14% 2.86% 15.82%
Global Bond (2.57)% 9.05% 8.31% 7.58% 15.83%
Cash Management 3.20% 3.51% 3.58% 3.31% 3.85%
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
* Inception to 12/31/97.
** Inception to 12/31/98.
*** Inception to 12/31/96.
****Inception to 12/31/99.
Inception date for each portfolio varies.
(1) Formerly named Growth/Phoenix and managed by Phoenix Investment Counsel, Inc.
(2) Formerly named Balanced/Phoenix and managed by Phoenix Investment Counsel, Inc.

<CAPTION>
- -------------------------------- --------------
CALENDAR YEAR
ANCHOR SERIES TRUST PORTFOLIO 1994
- -------------------------------- --------------
<S> <C>
Capital Appreciation (5.60)%
Growth (6.27)%
Natural Resources (5.93)%
Gov't and Quality Bond (4.44)%
- ---------------------------------------------------------------
SUNAMERICA SERIES TRUST
PORTFOLIO
Emerging Markets --
Int'l Diversified Equities (3.68)%
Global Equities (1.96)%
Int'l Growth and Income --
Aggressive Growth --
MFS Mid-Cap Growth --
Real Estate --
Putnam Growth (3.25)%
MFS Growth and Income(1) (9.52)%
Alliance Growth (3.76)%
"Dogs" of Wall Street --
Davis Venture Value (1.23)%
Federated Value --
Growth-Income (4.20)%
Utility --
Asset Allocation (1.80)%
MFS Total Return(2) (0.58)%
SunAmerica Balanced --
Worldwide High Income (2.39)%
High-Yield Bond (6.98)%
Corporate Bond (4.73)%
Global Bond (6.27)%
Cash Management 2.12 %
- ------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------
* Inception to 12/31/97.
** Inception to 12/31/98.
*** Inception to 12/31/96.
****Inception to 12/31/99.
Inception date for each portfoli
(1) Formerly named Growth/Phoeni
(2) Formerly named Balanced/Phoe
</TABLE>

----------------------------------------------------------------
----------------------------------------------------------------
9. DEATH BENEFIT
----------------------------------------------------------------
----------------------------------------------------------------

If you should die during the accumulation phase, your beneficiary will receive a
death benefit.

The death benefit is the greater of:

(1) the value of your contract at the time we receive satisfactory proof of
death; or

(2) total purchase payments less withdrawals (and any fees or charges applicable
to such withdrawals), compounded at a 4% annual growth rate until the date
of death (3% growth rate if 70 or older at the time of contract issue) plus
any purchase payments less withdrawals recorded after the date of death (and
any fees or charges applicable to such withdrawals); or

(3) the value of your contract on the seventh contract anniversary, plus any
purchase payments and less any withdrawals (and any fees or charges
applicable to such withdrawals) since the seventh anniversary, all
compounded at a 4% annual growth rate until the date of death (3% if 70 or
older at the time of contract issue) plus any purchase payments less
withdrawals recorded after the date of death (and any fees or charges
applicable to such withdrawals).
----------------------------------------------------------------
----------------------------------------------------------------
10. OTHER INFORMATION
----------------------------------------------------------------
----------------------------------------------------------------

FREE LOOK: You may cancel your contract within ten days (or longer if required
by your state) by mailing it to our Annuity Service Center. Your contract will
be treated as void on the date we receive it and we will pay you an amount equal
to the value of your contract (unless otherwise required by state law). Its
value may be more or less than the money you initially invested.

ASSET ALLOCATION REBALANCING: If selected by you, this program seeks to keep
your investment in line with your goals. We will maintain your specified
allocation mix in the variable portfolios and the 1-year fixed account option by
readjusting your money on a calendar quarter, semiannual or annual basis.

SYSTEMATIC WITHDRAWAL PROGRAM: If selected by you, this program allows you to
receive either monthly, quarterly, semiannual or annual checks during the
accumulation phase. Systematic withdrawals may also be electronically
transferred to your bank account. Of course, withdrawals may be taxable and a
10% federal tax penalty may apply if you are under age 59 1/2.

PRINCIPAL ADVANTAGE PROGRAM: If selected by you, this program allows you to
obtain growth potential without any
<PAGE> 6

market risk to your principal. We will guarantee that the portion of your money
allocated to the 1, 3, 5, 7 or 10-year fixed account option will grow to equal
your principal investment when it is allocated in accordance with the program.

DOLLAR COST AVERAGING: If selected by you, this program allows you to invest
gradually in the variable portfolios from any of the variable portfolios and the
1-year fixed account option.

AUTOMATIC PAYMENT PLAN: You can add to your contract directly from your bank
account with as little as $20 per month.

CONFIRMATIONS AND QUARTERLY STATEMENTS: During the accumulation phase, you will
receive a confirmation of transactions within your contract. Transactions made
pursuant to contractual or systematic agreements such as deduction of the annual
maintenance fee and dollar cost averaging, may be confirmed quarterly. Purchase
Payments received through the automatic payment plan or salary reduction
arrangement may also be confirmed quarterly. For all other transactions, we send
confirmations immediately. During the accumulation and income phases, you will
receive a statement of your transactions over the past quarter and a summary of
your account values.

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

----------------------------------------------------------------
11. INQUIRIES
----------------------------------------------------------------
----------------------------------------------------------------

If you have questions about your contract or need to make changes, call your
financial representative or contact us at:

Anchor National Life Insurance Company
Annuity Service Center
P.O. Box 54299
Los Angeles, California 90054-0299
Telephone Number: (800) 445-SUN2

If money accompanies your correspondence, you should direct it to:

Anchor National Life Insurance Company
P.O. Box 100330
Pasadena, California 91189-0001
<PAGE> 7

[POLARIS LOGO]

PROSPECTUS

MAY 1, 2000

<TABLE>
<S> <C> <C>
Please read this prospectus carefully FLEXIBLE PAYMENT DEFERRED ANNUITY CONTRACTS
before investing and keep it for issued by
future reference. It contains ANCHOR NATIONAL LIFE INSURANCE COMPANY
important information about the in connection with
Polaris Variable Annuity. VARIABLE SEPARATE ACCOUNT
The annuity has 32 investment choices -5 fixed account
To learn more about the annuity options and 27 Variable Portfolios listed below. The 5 fixed
offered by this prospectus, you can account options include specified periods of 1, 3, 5, 7 and
obtain a copy of the Statement of 10 years. The 27 Variable Portfolios are part of the Anchor
Additional Information ("SAI") dated Series Trust or the SunAmerica Series Trust.
May 1, 2000. The SAI has been filed
with the Securities and Exchange ANCHOR SERIES TRUST:
Commission ("SEC") and is MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP
incorporated by reference into this - Capital Appreciation Portfolio
prospectus. The Table of Contents of - Growth Portfolio
the SAI appears on page 19 of this - Natural Resources Portfolio
prospectus. For a free copy of the - Government and Quality Bond Portfolio
SAI, call us at (800) 445-SUN2 or
write to us at our Annuity Service SUNAMERICA SERIES TRUST:
Center, P.O. Box 54299, Los Angeles, MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.
California 90054-0299. - Global Equities Portfolio
- Alliance Growth Portfolio
In addition, the SEC maintains a - Growth-Income Portfolio
website (http://www.sec.gov) that MANAGED BY DAVIS SELECTED ADVISERS, L.P.
contains the SAI, materials - Davis Venture Value Portfolio
incorporated by reference and other - Real Estate Portfolio
information filed electronically with MANAGED BY FEDERATED INVESTORS
the SEC by Anchor National. - Federated Value Portfolio
- Utility Portfolio
ANNUITIES INVOLVE RISKS, INCLUDING - Corporate Bond Portfolio
POSSIBLE LOSS OF PRINCIPAL, AND ARE MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/
NOT A DEPOSIT OR OBLIGATION OF, OR GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL
GUARANTEED OR ENDORSED BY, ANY BANK. - Asset Allocation Portfolio
THEY ARE NOT FEDERALLY INSURED BY THE - Global Bond Portfolio
FEDERAL DEPOSIT INSURANCE MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY
CORPORATION, THE FEDERAL RESERVE - MFS Mid-Cap Growth
BOARD OR ANY OTHER AGENCY. - MFS Growth and Income Portfolio
- MFS Total Return Portfolio
MANAGED BY MORGAN STANLEY ASSET MANAGEMENT
- International Diversified Equities Portfolio
- Worldwide High Income Portfolio
MANAGED BY PUTNAM INVESTMENT MANAGEMENT, INC.
- Putnam Growth Portfolio
- International Growth and Income Portfolio
- Emerging Markets Portfolio
MANAGED BY SUNAMERICA ASSET MANAGEMENT CORP.
- Aggressive Growth Portfolio
- "Dogs" of Wall Street Portfolio
- SunAmerica Balanced Portfolio
- High-Yield Bond Portfolio
- Cash Management Portfolio
</TABLE>

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS
A CRIMINAL OFFENSE.
<PAGE> 8

- ----------------------------------------------------------------
- ----------------------------------------------------------------
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
- ----------------------------------------------------------------
- ----------------------------------------------------------------

Anchor National's Annual Report on Form 10-K for the year ended December 31,
1999 is incorporated herein by reference.

All documents or reports filed by Anchor National under Section 13(a), 13(c),
14, or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
Act") after the effective date of this prospectus shall also be incorporated by
reference. Statements contained in this prospectus and subsequently filed
documents which are incorporated by reference or deemed to be incorporated by
reference are deemed to modify or supersede documents incorporated herein by
reference.

Anchor National files its Exchange Act documents and reports, including its
annual and quarterly reports on Form 10-K and Form 10-Q, electronically pursuant
to EDGAR under CIK No. 0000006342.

Anchor National is subject to the informational requirements of the Securities
and Exchange Act of 1934 (as amended). We file reports and other information
with the SEC to meet those requirements. You can inspect and copy this
information at SEC public facilities at the following locations:

WASHINGTON, DISTRICT OF COLUMBIA
450 Fifth Street, N.W., Room 1024
Washington, D.C. 20549

CHICAGO, ILLINOIS
500 West Madison Street
Chicago, IL 60661

NEW YORK, NEW YORK
7 World Trade Center, 13th Fl.
New York, NY 10048

To obtain copies by mail contact the Washington, D.C. location. After you pay
the fees as prescribed by the rules and regulations of the SEC, the required
documents are mailed.

Registration statements under the Securities Act of 1933, as amended, related to
the contracts offered by this prospectus are on file with the SEC. This
prospectus does not contain all of the information contained in the registration
statements and its exhibits. For further information regarding the separate
account, Anchor National and its general account, the Variable Portfolios and
the contract, please refer to the registration statement and its exhibits.

The SEC also maintains a website (http://www.sec.gov) that contains the SAI,
materials incorporated by reference and other information filed electronically
with the SEC by Anchor National.

Anchor National will provide without charge to each person to whom this
prospectus is delivered, upon written or oral request, a copy of the above
documents incorporated herein by reference. Requests for these documents should
be directed to Anchor National's Annuity Service Center, as follows:
Anchor National Life Insurance Company
Annuity Service Center
P.O. Box 54299
Los Angeles, California 90054-0299
Telephone Number: (800) 445-SUN2

- ----------------------------------------------------------------
- ----------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION POSITION ON INDEMNIFICATION
- ----------------------------------------------------------------
- ----------------------------------------------------------------

If indemnification for liabilities arising under the Securities Act of 1933 (the
"Act") is provided Anchor National's officers, directors and controlling
persons, the SEC has advised Anchor National that it believes such
indemnification is against public policy under the Act and unenforceable. If a
claim for indemnification against such liabilities (other than for Anchor
National's payment of expenses incurred or paid by its directors, officers or
controlling persons in the successful defense of any legal action) is asserted
by a director, officer or controlling person of Anchor National in connection
with the securities registered under this prospectus, Anchor National will
submit to a court with jurisdiction to determine whether the indemnification is
against public policy under the Act. Anchor National will be governed by final
judgment of the issue. However, if in the opinion of Anchor National's counsel,
this issue has been determined by controlling precedent, Anchor National need
not submit the issue to a court for determination.

2
<PAGE> 9

<TABLE>
<S> <C> <C>
------------------------------------------------------------------
------------------------------------------------------------------
TABLE OF CONTENTS
------------------------------------------------------------------
------------------------------------------------------------------
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE............. 2
SECURITIES AND EXCHANGE COMMISSION POSITION ON
INDEMNIFICATION........................................... 2
GLOSSARY.................................................... 3
FEE TABLES.................................................. 4
Owner Transaction Expenses............................ 4
Annual Separate Account Expenses...................... 4
Portfolio Expenses.................................... 4
EXAMPLES.................................................... 5
THE POLARIS VARIABLE ANNUITY................................ 6
PURCHASING A POLARIS VARIABLE ANNUITY....................... 6
Allocation of Purchase Payments....................... 7
Accumulation Units.................................... 7
Free Look............................................. 7
INVESTMENT OPTIONS.......................................... 7
Variable Portfolios................................... 7
Anchor Series Trust................................... 8
SunAmerica Series Trust............................... 8
Fixed Account Options................................. 8
Market Value Adjustment ("MVA")....................... 8
Transfers During the Accumulation Phase............... 9
Dollar Cost Averaging................................. 10
Asset Allocation Rebalancing.......................... 10
Principal Advantage Program........................... 10
Voting Rights......................................... 11
Substitution.......................................... 11
ACCESS TO YOUR MONEY........................................ 11
Systematic Withdrawal Program......................... 11
Nursing Home Waiver................................... 12
Minimum Contract Value................................ 12
DEATH BENEFIT............................................... 12
EXPENSES.................................................... 13
Insurance Charges..................................... 13
Withdrawal Charges.................................... 13
Investment Charges.................................... 13
Contract Maintenance Fee.............................. 13
Transfer Fee.......................................... 13
Premium Tax........................................... 13
Income Taxes.......................................... 13
Reduction or Elimination of Charges and Expenses, and
Additional Amounts Credited........................... 13
INCOME OPTIONS.............................................. 14
Annuity Date.......................................... 14
Income Options........................................ 14
Fixed or Variable Income Payments..................... 14
Income Payments....................................... 15
Transfers During the Income Phase..................... 15
Deferment of Payments................................. 15
TAXES....................................................... 15
Annuity Contracts in General.......................... 15
Tax Treatment of Distributions -
Non-Qualified Contracts............................... 15
Tax Treatment of Distributions -
Qualified Contracts................................... 15
Minimum Distributions................................. 16
Diversification....................................... 16
PERFORMANCE................................................. 16
OTHER INFORMATION........................................... 16
Anchor National....................................... 16
The Separate Account.................................. 17
The General Account................................... 17
Distribution of the Contract.......................... 17
Administration........................................ 17
Year 2000............................................. 17
Legal Proceedings..................................... 17
Ownership............................................. 17
Custodian............................................. 18
Independent Accountants............................... 18
Legal Matters......................................... 18
Registration Statement................................ 18
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION....
18
APPENDIX A -- CONDENSED FINANCIAL INFORMATION............... A-1
APPENDIX B -- MARKET VALUE ADJUSTMENT ("MVA")............... B-1
APPENDIX C -- PREMIUM TAXES................................. C-1
------------------------------------------------------------------
------------------------------------------------------------------
GLOSSARY
------------------------------------------------------------------
------------------------------------------------------------------
We have capitalized some of the technical terms used in this
prospectus. To help you understand these terms, we have defined
them in this glossary.
ACCUMULATION PHASE - The period during which you invest money in
your contract.
ACCUMULATION UNITS - A measurement we use to calculate the value
of the variable portion of your contract during the Accumulation
Phase.
ANNUITANT(S) - The person(s) on whose life (lives) we base income
payments.
ANNUITY DATE - The date on which income payments are to begin, as
selected by you.
ANNUITY UNITS - A measurement we use to calculate the amount of
income payments you receive from the variable portion of your
contract during the Income Phase.
BENEFICIARY - The person designated to receive any benefits under
the contract if you or the Annuitant dies.
COMPANY - Anchor National Life Insurance Company, We, Us, the
insurer which issues this contract.
INCOME PHASE - The period during which we make income payments to
you.
IRS - The Internal Revenue Service.
NON-QUALIFIED (CONTRACT) - A contract purchased with after-tax
dollars. In general, these contracts are not under any pension
plan, specially sponsored program or individual retirement account
("IRA").
PURCHASE PAYMENTS - The money you give us to buy the contract, as
well as any additional money you give us to invest in the contract
after you own it.
QUALIFIED (CONTRACT) - A contract purchased with pretax dollars.
These contracts are generally purchased under a pension plan,
specially sponsored program or IRA.
TRUSTS - Refers to the Anchor Series Trust and the SunAmerica
Series Trust collectively.
VARIABLE PORTFOLIO(S) - The variable investment options available
under the contract. Each Variable Portfolio has its own investment
objective and is invested in the underlying investments of the
Anchor Series Trust or the SunAmerica Series Trust.
</TABLE>

ALL FINANCIAL REPRESENTATIVES OR AGENTS THAT SELL THE CONTRACTS OFFERED BY THIS
PROSPECTUS ARE REQUIRED TO DELIVER A PROSPECTUS.

3
<PAGE> 10

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

OWNER TRANSACTION EXPENSES

WITHDRAWAL CHARGE (AS A PERCENTAGE OF EACH PURCHASE PAYMENT)

<TABLE>
<S> <C> <C> <C>
Year 1...................... 7% Year 5...................... 3%
Year 2...................... 6% Year 6...................... 2%
Year 3...................... 5% Year 7...................... 1%
Year 4...................... 4% Year 8+..................... 0%

TRANSFER FEE.................... No charge for first 15 transfers
each contract year; thereafter,
fee is $25 ($10 in Pennsylvania
and Texas) per transfer

CONTRACT MAINTENANCE FEE*....... $35 ($30 in North Dakota)
*waived if contract value is $50,000 or more
</TABLE>

ANNUAL SEPARATE ACCOUNT EXPENSES
(AS A PERCENTAGE OF AVERAGE ACCOUNT VALUE)

<TABLE>
<S> <C>
Mortality and Expense Risk Charge................ 1.37%
Distribution Expense Charge...................... 0.15%
-----
TOTAL SEPARATE ACCOUNT EXPENSES 1.52%
=====
</TABLE>

PORTFOLIO EXPENSES

ANCHOR SERIES TRUST

(AS A PERCENTAGE OF AVERAGE NET ASSETS FOR THE TRUST'S TWELVE-MONTH PERIOD ENDED
DECEMBER 31, 1999)

SUNAMERICA SERIES TRUST

(AS A PERCENTAGE OF AVERAGE NET ASSETS AFTER REIMBURSEMENT OR WAIVER OF EXPENSES
FOR THE TRUST'S FISCAL YEAR ENDED JANUARY 31, 2000)

<TABLE>
<CAPTION>
MANAGEMENT OTHER TOTAL ANNUAL
PORTFOLIO FEE EXPENSES EXPENSES
<S> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
Emerging Markets** 1.25% .65% 1.90%
- -----------------------------------------------------------------------------------------------------------
International Diversified Equities 1.00% .22% 1.22%
- -----------------------------------------------------------------------------------------------------------
Global Equities .72% .12% .84%
- -----------------------------------------------------------------------------------------------------------
International Growth and Income .98% .23% 1.21%
- -----------------------------------------------------------------------------------------------------------
Aggressive Growth .70% .05% .75%
- -----------------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth* .75% .40% 1.15%***
- -----------------------------------------------------------------------------------------------------------
Real Estate .80% .12% .92%
- -----------------------------------------------------------------------------------------------------------
Putnam Growth .76% .04% .80%
- -----------------------------------------------------------------------------------------------------------
MFS Growth and Income .70% .05% .75%
- -----------------------------------------------------------------------------------------------------------
Alliance Growth .60% .03% .63%
- -----------------------------------------------------------------------------------------------------------
"Dogs" of Wall Street** .60% .07% .67%
- -----------------------------------------------------------------------------------------------------------
Davis Venture Value .71% .03% .74%
- -----------------------------------------------------------------------------------------------------------
Federated Value .71% .06% .77%
- -----------------------------------------------------------------------------------------------------------
Growth-Income .53% .03% .56%
- -----------------------------------------------------------------------------------------------------------
Utility .75% .09% .84%
- -----------------------------------------------------------------------------------------------------------
Asset Allocation .58% .05% .63%
- -----------------------------------------------------------------------------------------------------------
MFS Total Return .66% .09% .75%
- -----------------------------------------------------------------------------------------------------------
SunAmerica Balanced .62% .04% .66%
- -----------------------------------------------------------------------------------------------------------
Worldwide High Income 1.00% .12% 1.12%
- -----------------------------------------------------------------------------------------------------------
High-Yield Bond .62% .05% .67%
- -----------------------------------------------------------------------------------------------------------
Corporate Bond .62% .09% .71%
- -----------------------------------------------------------------------------------------------------------
Global Bond .69% .15% .84%
- -----------------------------------------------------------------------------------------------------------
Cash Management .49% .04% .53%
- -----------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------
</TABLE>

* Absent fee waivers or reimbursement of expenses by the adviser, you would
have incurred the following expenses during the last fiscal year: MFS
Mid-Cap Growth (1.17%).

** Absent recoupment of expenses by the adviser, you would have incurred the
following expenses during the last fiscal year: Emerging Markets (1.77%);
"Dogs" of Wall Street (.67%).

*** Annualized.

THE ABOVE PORTFOLIO EXPENSES WERE PROVIDED BY THE TRUSTS. WE HAVE NOT
INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION.

4
<PAGE> 11

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
EXAMPLES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

You will pay the following expenses on a $1,000 investment in each Variable
Portfolio, assuming a 5% annual return on assets and:
(a) surrendered at the end of the stated time period;
(b) if the contract is not surrendered*.

<TABLE>
<CAPTION>
PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
Capital Appreciation (a) $ 93 (a) $120 (a) $150 (a) $258
(b) $ 23 (b) $ 70 (b) $120 (b) $258
- ----------------------------------------------------------------------------------------------------
Growth (a) $ 93 (a) $122 (a) $153 (a) $264
(b) $ 23 (b) $ 72 (b) $123 (b) $264
- ----------------------------------------------------------------------------------------------------
Natural Resources (a) $ 96 (a) $130 (a) $167 (a) $272
(b) $ 26 (b) $ 80 (b) $137 (b) $272
- ----------------------------------------------------------------------------------------------------
Government and Quality Bond (a) $ 93 (a) $120 (a) $150 (a) $257
(b) $ 23 (b) $ 70 (b) $120 (b) $257
- ----------------------------------------------------------------------------------------------------
Emerging Markets (a) $105 (a) $157 (a) $211 (a) $375
(b) $ 35 (b) $107 (b) $181 (b) $375
- ----------------------------------------------------------------------------------------------------
International Diversified Equities (a) $ 98 (a) $137 (a) $178 (a) $312
(b) $ 28 (b) $ 87 (b) $148 (b) $312
- ----------------------------------------------------------------------------------------------------
Global Equities (a) $ 94 (a) $125 (a) $159 (a) $275
(b) $ 24 (b) $ 75 (b) $129 (b) $275
- ----------------------------------------------------------------------------------------------------
International Growth and Income (a) $ 98 (a) $136 (a) $177 (a) $311
(b) $ 28 (b) $ 86 (b) $147 (b) $311
- ----------------------------------------------------------------------------------------------------
Aggressive Growth (a) $ 94 (a) $123 (a) $154 (a) $266
(b) $ 24 (b) $ 73 (b) $124 (b) $266
- ----------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth (a) $ 98 (a) $135 (a) $174 (a) $305
(b) $ 28 (b) $ 85 (b) $144 (b) $305
- ----------------------------------------------------------------------------------------------------
Real Estate (a) $ 95 (a) $128 (a) $163 (a) $283
(b) $ 25 (b) $ 78 (b) $133 (b) $283
- ----------------------------------------------------------------------------------------------------
Putnam Growth (a) $ 94 (a) $124 (a) $157 (a) $271
(b) $ 24 (b) $ 74 (b) $127 (b) $271
- ----------------------------------------------------------------------------------------------------
MFS Growth and Income (a) $ 94 (a) $123 (a) $154 (a) $266
(b) $ 24 (b) $ 73 (b) $124 (b) $266
- ----------------------------------------------------------------------------------------------------
Alliance Growth (a) $ 92 (a) $119 (a) $148 (a) $254
(b) $ 22 (b) $ 69 (b) $118 (b) $254
- ----------------------------------------------------------------------------------------------------
"Dogs" of Wall Street (a) $ 93 (a) $120 (a) $150 (a) $258
(b) $ 23 (b) $ 70 (b) $120 (b) $258
- ----------------------------------------------------------------------------------------------------
Venture Value (a) $ 93 (a) $122 (a) $154 (a) $265
(b) $ 23 (b) $ 72 (b) $124 (b) $265
- ----------------------------------------------------------------------------------------------------
Federated Value (a) $ 94 (a) $123 (a) $155 (a) $268
(b) $ 24 (b) $ 73 (b) $125 (b) $268
- ----------------------------------------------------------------------------------------------------
Growth-Income (a) $ 92 (a) $117 (a) $145 (a) $247
(b) $ 22 (b) $ 67 (b) $115 (b) $247
- ----------------------------------------------------------------------------------------------------
Utility (a) $ 94 (a) $125 (a) $159 (a) $275
(b) $ 24 (b) $ 75 (b) $129 (b) $275
- ----------------------------------------------------------------------------------------------------
Asset Allocation (a) $ 92 (a) $119 (a) $148 (a) $254
(b) $ 22 (b) $ 69 (b) $118 (b) $254
- ----------------------------------------------------------------------------------------------------
MFS Total Return (a) $ 94 (a) $123 (a) $154 (a) $266
(b) $ 24 (b) $ 73 (b) $124 (b) $266
- ----------------------------------------------------------------------------------------------------
SunAmerica Balanced (a) $ 93 (a) $120 (a) $150 (a) $257
(b) $ 23 (b) $ 70 (b) $120 (b) $257
- ----------------------------------------------------------------------------------------------------
Worldwide High Income (a) $ 97 (a) $134 (a) $173 (a) $302
(b) $ 27 (b) $ 84 (b) $143 (b) $302
- ----------------------------------------------------------------------------------------------------
High-Yield Bond (a) $ 93 (a) $120 (a) $150 (a) $258
(b) $ 23 (b) $ 70 (b) $120 (b) $258
- ----------------------------------------------------------------------------------------------------
Corporate Bond (a) $ 93 (a) $121 (a) $152 (a) $262
(b) $ 23 (b) $ 71 (b) $122 (b) $262
- ----------------------------------------------------------------------------------------------------
Global Bond (a) $ 94 (a) $125 (a) $159 (a) $275
(b) $ 24 (b) $ 75 (b) $129 (b) $275
- ----------------------------------------------------------------------------------------------------
Cash Management (a) $ 91 (a) $116 (a) $143 (a) $243
(b) $ 21 (b) $ 66 (b) $113 (b) $243
- ----------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------
</TABLE>

* Anchor National does not impose any fees or charges when you begin the
Income Phase of your contract.

5
<PAGE> 12

EXPLANATION OF FEE TABLES AND EXAMPLES

1. The purpose of the Fee Tables is to show you the various expenses you would
incur directly and indirectly by investing in the contract.

2. For certain Variable Portfolios, the adviser, SunAmerica Asset Management
Corp., has voluntarily agreed to waive fees or reimburse certain expenses,
if necessary, to keep annual operating expenses at or below the lesser of
the maximum allowed by any applicable state expense limitations or the
following percentages of each Variable Portfolio's average net assets:
SunAmerica Balanced (1.00%); Aggressive Growth (.90%); Federated Value
(1.03%); Utility (1.05%); Emerging Markets (1.90%); International Growth and
Income (1.60%); and Real Estate (1.25%). The adviser also may voluntarily
waive or reimburse additional amounts to increase a Variable Portfolio's
investment return. All waivers and/or reimbursements may be terminated at
any time. Furthermore, the adviser may recoup any waivers or reimbursements
within two years after such waivers or reimbursements are granted, provided
that the Variable Portfolio is able to make such payment and remain in
compliance with the foregoing expense limitations.

3. The Examples assume that no transfer fees were imposed. Although premium
taxes may apply in certain states, they are not reflected in the Examples.

4. THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.

THE HISTORICAL ACCUMULATION UNIT VALUES ARE CONTAINED IN APPENDIX A -- CONDENSED
FINANCIAL INFORMATION.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
THE POLARIS VARIABLE ANNUITY
- ----------------------------------------------------------------
- ----------------------------------------------------------------

An annuity is a contract between you and an insurance company. You are the owner
of the contract. The contract provides three main benefits:

- Tax Deferral: This means that you do not pay taxes on your earnings from
the annuity until you withdraw them.

- Death Benefit: If you die during the Accumulation Phase, the insurance
company pays a death benefit to your Beneficiary.

- Guaranteed Income: If elected, you receive a stream of income for your
lifetime, or another available period you select.

This annuity was developed to help you contribute to your retirement savings.
This annuity works in two stages, the Accumulation Phase and the Income Phase.
Your contract is in the Accumulation Phase during the period when you make
payments into the contract. The Income Phase begins when you request us to start
making income payments to you out of the money accumulated in your contract.

The contract is called a "variable" annuity because it allows you to invest in
variable portfolios which, like mutual funds, have different investment
objectives and performance which varies. You can gain or lose money if you
invest in these Variable Portfolios. The amount of money you accumulate in your
contract depends on the performance of the Variable Portfolios in which you
invest. This contract currently offers 27 Variable Portfolios.

The contract also offers several fixed account options for varying time periods.
Fixed account options earn interest at a rate set and guaranteed by Anchor
National. If you allocate money to the fixed account options, the amount of
money that accumulates in the contract depends on the total interest credited to
the particular fixed account option(s) in which you invest.

For more information on investment options available under this contract SEE
INVESTMENT OPTIONS ON PAGE 7.

Anchor National Life Insurance Company (Anchor National, The Company, Us, We)
issues the Polaris Variable Annuity. When you purchase a Polaris Variable
Annuity, a contract exists between you and Anchor National. The Company is a
stock life insurance company organized under the laws of the state of Arizona.
Its principal place of business is 1 SunAmerica Center, Los Angeles, California
90067. The Company conducts life insurance and annuity business in the District
of Columbia and all states except New York. Anchor National is an indirect,
wholly owned subsidiary of American International Group, Inc. ("AIG"), a
Delaware corporation.
- ----------------------------------------------------------------
- ----------------------------------------------------------------
PURCHASING A POLARIS VARIABLE ANNUITY
- ----------------------------------------------------------------
- ----------------------------------------------------------------

An initial Purchase Payment is the money you give us to buy a contract. Any
additional money you give us to invest in the contract after purchase is a
subsequent Purchase Payment.

This chart shows the minimum initial and subsequent Purchase Payments permitted
under your contract. These amounts depend upon whether a contract is Qualified
or Non-qualified for tax purposes. FOR FURTHER EXPLANATION, SEE TAXES ON PAGE
15.

<TABLE>
<S> <C> <C>
- -----------------------------------------------------------
Minimum
Minimum Initial Subsequent
Purchase Payment Purchase Payment
- -----------------------------------------------------------
Qualified $2,000 $250
- -----------------------------------------------------------
Non-Qualified $5,000 $500
- -----------------------------------------------------------
</TABLE>

Prior Company approval is required to accept Purchase Payments greater than
$1,500,000. The Company reserves the right to refuse any Purchase Payment
including, but not limited to, one which would cause the contract value to
exceed $1,500,000 at the time of the Purchase Payment. Also, the optional
automatic payment plan allows you to make subsequent Purchase Payments of as
little as $20.00.

6
<PAGE> 13

We may refuse any Purchase Payment. In general, we will not issue a Qualified
contract to anyone who is age 70 1/2 or older, unless it is shown that the
minimum distribution required by the IRS is being made. In addition we may not
issue a contract to anyone over age 90.

ALLOCATION OF PURCHASE PAYMENTS

We invest your Purchase Payments in the fixed and variable investment options
according to your instructions. If we receive a Purchase Payment without
allocation instructions, we will invest the money according to your last
allocation instructions. SEE INVESTMENT OPTIONS BELOW.

In order to issue your contract, we must receive your completed application,
Purchase Payment allocation instructions and any other required paperwork at our
principal place of business. We allocate your initial Purchase Payment within
two days of receiving it. If we do not have complete information necessary to
issue your contract, we will contact you. If we do not have the information
necessary to issue your contract within 5 business days we will:

- Send your money back to you, or;

- Ask your permission to keep your money until we get the information
necessary to issue the contract.

ACCUMULATION UNITS

When you allocate a Purchase Payment to the Variable Portfolios, we credit your
contract with Accumulation Units of the separate account. We base the number of
Accumulation Units you receive on the unit value of the Variable Portfolio as of
the day we receive your money if we receive it before 1 p.m. Pacific Standard
Time, or on the next business day's unit value if we receive your money after 1
p.m. Pacific Standard Time. (SEE BELOW). The value of an Accumulation Unit goes
up and down based on the performance of the Variable Portfolios.

We calculate the value of an Accumulation Unit each day that the New York Stock
Exchange ("NYSE") is open as follows:

1. We determine the total value of money invested in a particular Variable
Portfolio;

2. We subtract from that amount all applicable contract charges; and

3. We divide this amount by the number of outstanding Accumulation Units.

We determine the number of Accumulation Units credited to your contract by
dividing the Purchase Payment by the Accumulation Unit value for the specific
Variable Portfolio.

EXAMPLE:

We receive a $25,000 Purchase Payment from you on Wednesday. You allocate
the money to the Global Bond Portfolio. We determine that the value of an
Accumulation Unit for the Global Bond Portfolio is $11.10 when the NYSE
closes on Wednesday. We then divide $25,000 by $11.10 and credit your
contract on Wednesday night with 2252.52 Accumulation Units for the Global
Bond Portfolio.

Performance of the Variable Portfolios and expenses under your contract affect
Accumulation Unit values. These factors cause the value of your contract to go
up and down.

FREE LOOK

You may cancel your contract within ten days after receiving it (or longer if
required by state law). We call this a "free look." To cancel, you must mail the
contract along with your free look request to our Annuity Service Center at P.O.
Box 54299, Los Angeles, California 90054-0299. We will refund to you the value
of your contract on the day we receive your request. The amount refunded to you
may be more or less than the amount you originally invested.

Certain states require us to return your Purchase Payments upon a free look
request. Additionally, all contracts issued as an IRA require the full return of
Purchase Payments upon a free look. With respect to those contracts, we reserve
the right to put your money in the Cash Management Portfolio during the free
look period. If you cancel your contract during the free look period, we return
your Purchase Payment or the value of your contract, whichever is larger. At the
end of the free look period, we allocate your money according to your
instructions.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
INVESTMENT OPTIONS
- ----------------------------------------------------------------
- ----------------------------------------------------------------

VARIABLE PORTFOLIOS

The contract currently offers 27 Variable Portfolios. These Variable Portfolios
invest in shares of the Anchor Series Trust and the SunAmerica Series Trust (the
"Trusts"). Additional portfolios may be available in the future. The Variable
Portfolios operate similarly to a mutual fund but are only available through the
purchase of certain insurance contracts.

SunAmerica Asset Management Corp., an indirect wholly owned subsidiary of AIG,
is the investment adviser to the Trusts. The Trusts serve as the underlying
investment vehicles for other variable annuity contracts issued by Anchor
National, and other affiliated/unaffiliated insurance companies. Neither Anchor
National nor the Trusts believe that offering shares of the Trusts in this
manner disadvantages you. The adviser monitors the Trusts for potential
conflicts.

7
<PAGE> 14

The Variable Portfolios, along with their respective subadvisers are listed
below:

ANCHOR SERIES TRUST

Wellington Management Company, LLP serves as subadviser to the Anchor Series
Trust portfolios. Anchor Series Trust has investment portfolios in addition to
those listed below which are not available for investment under the contract.
The 4 available investment portfolios are:

MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP

- Capital Appreciation Portfolio
- Growth Portfolio
- Natural Resources Portfolio
- Government and Quality Bond Portfolio

SUNAMERICA SERIES TRUST

Various subadvisers provide investment advice for the SunAmerica Series Trust
portfolios. SunAmerica Series Trust has investment portfolios in addition to
those listed below which are not available for investment under the contract.
The 23 investment portfolios and the subadvisers are:

MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.

- Global Equities Portfolio
- Alliance Growth Portfolio
- Growth Income Portfolio

MANAGED BY DAVIS SELECTED ADVISERS, L.P.

- Venture Value Portfolio
- Real Estate Portfolio

MANAGED BY FEDERATED INVESTORS

- Federated Value Portfolio
- Utility Portfolio
- Corporate Bond Portfolio

MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/GOLDMAN
SACHS ASSET MANAGEMENT INTERNATIONAL

- Asset Allocation Portfolio
- Global Bond Portfolio

MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY

- MFS Mid-Cap Growth
- MFS Growth and Income Portfolio
- MFS Total Return Portfolio

MANAGED BY MORGAN STANLEY ASSET MANAGEMENT

- International Diversified Equities Portfolio
- Worldwide High Income Portfolio

MANAGED BY PUTNAM INVESTMENT MANAGEMENT

- Putnam Growth Portfolio
- International Growth and Income Portfolio
- Emerging Markets Portfolio

MANAGED BY SUNAMERICA ASSET MANAGEMENT, INC.

- Aggressive Growth Portfolio
- "Dogs" of Wall Street Portfolio
- SunAmerica Balanced Portfolio
- High-Yield Bond Portfolio
- Cash Management Portfolio

YOU SHOULD READ THE ATTACHED PROSPECTUSES FOR THE TRUSTS CAREFULLY. THESE
PROSPECTUSES CONTAIN DETAILED INFORMATION ABOUT THE VARIABLE PORTFOLIOS,
INCLUDING EACH VARIABLE PORTFOLIO'S INVESTMENT OBJECTIVE AND RISK FACTORS.

FIXED ACCOUNT OPTIONS

The contract also offers five fixed account options. Anchor National will
guarantee the interest rate earned on money you allocate to any of these fixed
account options. We currently offer fixed account options for periods of one,
three, five, seven and ten years, which we call guarantee periods.

Each guarantee period may offer a different interest rate but will never be less
than an annual effective rate of 3%. Once established the rates for specified
payments do not change during the guarantee period. The guarantee period is that
period for which we credit the applicable rate (one, three, five, seven or ten
years).

There are three scenarios in which you may put money into the MVA fixed account
options. In each scenario your money may be credited a different rate of
interest as follows:

- Initial Rate: Rate credited to new Purchase Payments allocated to the
fixed account when you purchase your contract.

- Current Rate: Rate credited to subsequent Purchase Payments allocated to
the fixed account.

- Renewal Rate: Rate credited to money transferred from one fixed account
or one of the Variable Portfolios to another fixed account.

Each of these rates may differ from one another. Once declared, the applicable
rate is guaranteed until the corresponding guarantee period expires.

When a guarantee period ends, you may leave your money in the same fixed
investment option. You may also reallocate your money to another fixed
investment option or to the Variable Portfolios. If you want to reallocate your
money to a different fixed account option or a Variable Portfolio, you must
contact us within 30 days after the end of the current interest guarantee period
and instruct us how to reallocate the money. We do not contact you. If we do not
hear from you, your money will remain in the same fixed account option, where it
will earn interest at the renewal rate then in effect for the fixed account
option.

MARKET VALUE ADJUSTMENT ("MVA")

NOTE: THE FOLLOWING DISCUSSION APPLIES TO THE 3, 5, 7 AND 10-YEAR FIXED ACCOUNT
OPTIONS, ONLY.

If you take money out of the multi-year fixed account options before the end of
the guarantee period, we make an adjustment to your contract. We refer to the
adjustment as a market value adjustment (the "MVA"). The MVA reflects any
difference in the interest rate environment between the

8
<PAGE> 15

time you place your money in the fixed account option and the time when you
withdraw that money. This adjustment can increase or decrease your contract
value. You have 30 days after the end of each guarantee period to reallocate
your funds without incurring any MVA.

We calculate the MVA by doing a comparison between current rates and the rate
being credited to you in the fixed account option. For the current rate we use a
rate being offered by us for a guarantee period that is equal to the time
remaining in the guarantee period from which you seek withdrawal. If we are not
currently offering a guarantee period for that period of time, we determine an
applicable rate by using a formula to arrive at a number between the interest
rates currently offered for the two closest periods available.

Generally, if interest rates drop between the time you put your money into the
fixed account options and the time you take it out, we credit a positive
adjustment to your contract. Conversely, if interest rates increase during the
same period, we post a negative adjustment to your contract.

Where the MVA is negative, we first deduct the adjustment from any money
remaining in the fixed account option. If there is not enough money in the fixed
account option to meet the negative deduction, we deduct the remainder from your
withdrawal. Where the MVA is positive, we add the adjustment to your withdrawal
amount.

Anchor National does not assess a MVA against withdrawals under the following
circumstances:

- If made within 30 days after the end of a guarantee period;

- If made to pay contract fees and charges;

- To pay a death benefit; and

- If annuitization occurs on the latest Annuity Date.

The 1-year fixed account option does not impose a MVA. This fixed account option
is not registered under the Securities Act of 1933 and is not subject to the
provisions of the Investment Company Act of 1940.

APPENDIX B shows how we calculate the MVA.

TRANSFERS DURING THE ACCUMULATION PHASE

During the Accumulation Phase you may transfer funds between the Variable
Portfolios and/or the fixed account options. Funds already in your contract
cannot be transferred into the DCA fixed accounts. You must transfer at least
$100. If less than $100 will remain in any Variable Portfolio after a transfer,
that amount must be transferred as well.

You may request transfers of your account value between the Variable Portfolios
and/or the fixed account options in writing or by telephone. We currently allow
15 free transfers per contract per year. We charge $25 ($10 in Pennsylvania and
Texas) for each additional transfer in any contract year. Transfers resulting
from your participation in the DCA program count against your 15 free transfers
per contract year. However, transfers resulting from your participation in the
automatic asset rebalancing program do not count against your 15 free transfers.

We accept transfer requests by telephone unless you tell us not to on your
contract application. Additionally, in the future you may be able to execute
transfers or other financial transactions over the internet. When receiving
instructions over the telephone, we follow appropriate procedures to provide
reasonable assurance that the transactions executed are genuine. Thus, we are
not responsible for any claim, loss or expense from any error resulting from
instructions received over the telephone.

Upon implementation of internet account transactions we will have appropriate
procedures in place to provide reasonable assurance that the transactions
executed are genuine. Thus, we would not be responsible for any claim, loss or
expense from any error resulting from instructions received over the internet.
If we fail to follow our procedures, we may be liable for any losses due to
unauthorized or fraudulent instructions.

We may limit the number of transfers in any contract year or refuse any transfer
request for you or others invested in the contract if we believe that excessive
trading or a specific transfer request or group transfer requests may have a
detrimental effect on unit values or the share prices of the underlying Variable
Portfolios.

Where permitted by law, we may accept your authorization for a third party to
make transfers for you subject to our rules. We reserve the right to suspend or
cancel such acceptance at any time and will notify you accordingly.
Additionally, we may restrict the investment options available for transfers
during any period in which such third party acts for you. We notify such third
party beforehand regarding any restrictions. However, we will not enforce these
restrictions if we are satisfied that:

- such third party has been appointed by a court of competent jurisdiction
to act on your behalf; or

- such third party is a trustee/fiduciary, for you or appointed by you, to
act on your behalf for all your financial affairs.

We may provide administrative or other support services to independent third
parties you authorize to make transfers on your behalf. We do not currently
charge you extra for providing these support services. This includes, but is not
limited to, transfers between investment options in accordance with market
timing strategies. Such independent third parties may or may not be appointed
with us for the sale of annuities. However, WE DO NOT ENGAGE ANY THIRD PARTIES
TO OFFER INVESTMENT ALLOCATION SERVICES OF ANY TYPE. WE TAKE NO RESPONSIBILITY
FOR THE INVESTMENT ALLOCATION AND TRANSFERS TRANSACTED ON YOUR BEHALF BY SUCH
THIRD PARTIES

9
<PAGE> 16

OR FOR ANY INVESTMENT ALLOCATION RECOMMENDATIONS MADE BY SUCH PARTIES.

For information regarding transfers during the Income Phase, SEE INCOME OPTIONS
ON PAGE 14.

We reserve the right to modify, suspend, waive or terminate these transfer
provisions at any time.

DOLLAR COST AVERAGING

The Dollar Cost Averaging ("DCA") program allows you to invest gradually in the
Variable Portfolios. Under the program you systematically transfer a set dollar
amount or percentage of portfolio value from one Variable Portfolio or the
1-year fixed account option (source accounts) to any other Variable Portfolio.
Transfers may be monthly or quarterly and do count against your 15 free
transfers per contract year. You may change the frequency at any time by
notifying us in writing. The minimum transfer amount under the DCA program is
$100, regardless of the source account.

The DCA program is designed to lessen the impact of market fluctuations on your
investment. However, we cannot ensure that you will make a profit. When you
elect the DCA program, you are continuously investing in securities regardless
of fluctuating price levels. You should consider your tolerance for investing
through periods of fluctuating price levels.

We reserve the right to modify, suspend or terminate this program at any time.

EXAMPLE:

Assume that you want to gradually move $750 each quarter from the Cash
Management Portfolio to the Aggressive Growth Portfolio over six quarters.
You set up dollar cost averaging and purchase Accumulation Units at the
following values:

<TABLE>
<CAPTION>
- -------------------------------------------
ACCUMULATION UNITS
QUARTER UNIT PURCHASED
- -------------------------------------------
<S> <C> <C>
1 $ 7.50 100
2 $ 5.00 150
3 $10.00 75
4 $ 7.50 100
5 $ 5.00 150
6 $ 7.50 100
- -------------------------------------------
</TABLE>

You paid an average price of only $6.67 per Accumulation Unit over six
quarters, while the average market price actually was $7.08. By investing
an equal amount of money each month, you automatically buy more
Accumulation Units when the market price is low and fewer Accumulation
Units when the market price is high. This example is for illustrative
purposes only.

ASSET ALLOCATION REBALANCING
Earnings in your contract may cause the percentage of your investment in each
investment option to differ from your original allocations. The automatic asset
rebalancing program addresses this situation. At your election, we periodically
rebalance your investments to return your allocations to their original
percentages. Asset rebalancing typically involves shifting a portion of your
money out of an investment option with a higher return into an investment option
with a lower return.

At your request, rebalancing occurs on a quarterly, semiannual or annual basis.
Transfers made as a result of rebalancing do not count against your 15 free
transfers for the contract year.

We reserve the right to modify, suspend or terminate this program at any time.

EXAMPLE:

Assume that you want your initial Purchase Payment split between two
Variable Portfolios. You want 50% in the Corporate Bond Portfolio and 50%
in the Growth Portfolio. Over the next calendar quarter, the bond market
does very well while the stock market performs poorly. At the end of the
calendar quarter, the Corporate Bond Portfolio now represents 60% of your
holdings because it has increased in value and the Growth Portfolio
represents 40% of your holdings. If you had chosen quarterly rebalancing,
on the last day of that quarter, we would sell some of your units in the
Corporate Bond Portfolio to bring its holdings back to 50% and use the
money to buy more units in the Growth Portfolio to increase those holdings
to 50%.

PRINCIPAL ADVANTAGE PROGRAM

The Principal Advantage Program allows you to invest in one or more Variable
Portfolios without putting your principal at direct risk. The program
accomplishes this by allocating your investment strategically between the fixed
account options and Variable Portfolios. You decide how much you want to invest
and approximately when you want a return of principal. We calculate how much of
your Purchase Payment to allocate to the particular fixed account option to
ensure that it grows to an amount equal to your total principal invested under
this program. We invest the rest of your principal in the Variable Portfolio(s)
of your choice.

We reserve the right to modify, suspend or terminate this program at any time.

EXAMPLE:

Assume that you want to allocate a portion of your initial Purchase Payment
of $100,000 to the fixed account option. You want the amount allocated to
the fixed

10
<PAGE> 17

account option to grow to $100,000 in 7 years. If the 7-year fixed account
option is offering a 5% interest rate, we will allocate $71,069 to the
7-year fixed account option to ensure that this amount will grow to
$100,000 at the end of the 7-year period. The remaining $28,931 may be
allocated among the Variable Portfolios, as determined by you, to provide
opportunity for greater growth.

VOTING RIGHTS

Anchor National is the legal owner of the Trusts' shares. However, when a
Variable Portfolio solicits proxies in conjunction with a vote of shareholders,
we must obtain your instructions on how to vote those shares. We vote all of the
shares we own in proportion to your instructions. This includes any shares we
own on our own behalf. Should we determine that we are no longer required to
comply with these rules, we will vote the shares in our own right.

SUBSTITUTION

If underlying funds of the Trusts become unavailable for investment, we may be
required to substitute shares of another underlying fund. We will seek prior
approval of the SEC and give you notice before substituting shares.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
ACCESS TO YOUR MONEY
- ----------------------------------------------------------------
- ----------------------------------------------------------------

You can access money in your contract in two ways:

- by making a partial or total withdrawal, and/or;

- by receiving income payments during the Income Phase. SEE INCOME OPTIONS
ON PAGE 14.

Generally, we deduct a withdrawal charge applicable to any total or partial
withdrawal and a MVA against withdrawals from the 3, 5, 7 or 10 year fixed
account options. If you withdraw your entire contract value, we also deduct
premium taxes and a contract maintenance fee. SEE EXPENSES ON PAGE 13.

Your contract provides for a free withdrawal amount. A free withdrawal amount is
the portion of your account that we allow you to take out each year without
being charged a withdrawal charge.

Purchase Payments that are no longer subject to a withdrawal charge and not
previously withdrawn, plus earnings, may be withdrawn free of a withdrawal
charge at any time.

After the first year, you may withdraw the greater of the following amounts free
of a withdrawal charge (1) earnings in your contract as of the date you make the
withdrawal; or (2) 10% of the Purchase Payments you invested for at least one
year and not yet withdrawn, less any previous earnings withdrawals or Systematic
Withdrawals that year.
Only your first withdrawal of the year is free. If you do not take the entire
free amount available to you at that first withdrawal, you will forfeit the
opportunity to withdraw that money free of the withdrawal charge for that year.

The portion of a free withdrawal which exceeds the sum of: (1) earnings in the
contract and (2) Purchase Payments which are both no longer subject to the
withdrawal charge schedule and not yet withdrawn is assumed to be a withdrawal
against future earnings. Although amounts withdrawn free of a withdrawal charge
under the 10% provision may reduce principal for purposes of calculating amounts
available for future withdrawals of earnings, they do not reduce the amount you
invested for purposes of calculating the withdrawal charge if you withdraw your
entire contract value.

However, upon a future full surrender of your contract, we will recoup any
withdrawal charges which would have been applicable if your free withdrawal(s)
had not been free.

We calculate charges due on a total withdrawal on the day after we receive your
request and your contract. We return to you your contract value less any
applicable fees and charges.

Under most circumstances, the partial withdrawal minimum is $1,000. We require
that the value left in any investment option be at least $100, after the
withdrawal. You must send a written withdrawal request. Unless you provide us
with different instructions, partial withdrawals will be made pro rata from each
Variable Portfolio and the fixed in account option in which your contract is
invested.

Under certain Qualified plans, access to the money in your contract may be
restricted. Additionally, withdrawals made prior to age 59 1/2 may result in a
10% IRS penalty tax. SEE TAXES ON PAGE 15.

We may be required to suspend or postpone the payment of a withdrawal for any
period of time when: (1) the NYSE is closed (other than a customary weekend and
holiday closings); (2) trading with the NYSE is restricted; (3) an emergency
exists such that disposal of or determination of the value of shares of the
Variable Portfolios is not reasonably practicable; (4) the SEC, by order, so
permits for the protection of contract owners.

Additionally, we reserve the right to defer payments for a withdrawal from a
fixed account in option. Such deferrals are limited to no longer than six
months.

SYSTEMATIC WITHDRAWAL PROGRAM

During the Accumulation Phase, you may elect to receive periodic income payments
under the systematic withdrawal program. Under the program, you may choose to
take monthly, quarterly, semi-annual or annual payments from your contract.
Electronic transfer of these funds to your bank account is also available. The
minimum amount of each withdrawal is $250. There must be at least $500 remaining
in your contract at all times. Withdrawals may be taxable and a 10% IRS penalty
tax may apply if you are under age 59 1/2.

11
<PAGE> 18

There is no additional charge for participating in this program, although a
withdrawal charge and/or MVA may apply.

The program is not available to everyone. Please check with our Annuity Service
Center, which can provide the necessary enrollment forms. We reserve the right
to modify, suspend or terminate this program at any time.

NURSING HOME WAIVER

If you are confined to a nursing home for 60 days or longer, we may waive the
withdrawal charge and/or market value adjustment on certain withdrawals prior to
the Annuity Date (not available in Texas). The waiver applies only to
withdrawals made while you are in a nursing home or within 90 days after you
leave the nursing home. Your contract prohibits use of this waiver during the
first 90 days after you purchase your contract. In addition, the confinement
period for which you seek the waiver must begin after you purchase your
contract.

In order to use this waiver, you must submit with your withdrawal request, the
following documents: (1) a doctor's note recommending admittance to a nursing
home; (2) an admittance form which shows the type of facility you entered; and
(3) a bill from the nursing home which shows that you met the 60 day confinement
requirement.

MINIMUM CONTRACT VALUE

Where permitted by state law, we may terminate your contract if both of the
following occur: (1) your contract is less than $500 as a result of withdrawals;
and (2) you have not made any Purchase Payments during the past three years. We
will provide you with sixty days written notice. At the end of the notice
period, we will distribute the contract's remaining value to you.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
DEATH BENEFIT
- ----------------------------------------------------------------
- ----------------------------------------------------------------

If you die during the Accumulation Phase of your contract, we pay a death
benefit to your Beneficiary.

The death benefit is the greater of:

1. the value of your contract at the time we receive satisfactory proof of
death; or

2. total Purchase Payments less withdrawals (and any fees or charges
applicable to such withdrawals), compounded at a 4% annual growth rate
until the date of death (3% growth rate if 70 or older at the time of
contract issue) plus any Purchase Payments less withdrawals recorded
after the date of death (and any fees or charges applicable to such
withdrawals); or

3. the value of your contract on the seventh contract anniversary, plus any
Purchase Payments and less any withdrawals (and any fees or charges
applicable to such withdrawals), since the seventh contract anniversary,
all compounded at a 4% annual growth rate until the date of death (3%
growth rate if age 70 or older at the time of contract issue) plus any
Purchase Payments less withdrawals recorded after the date of death (and
any fees or charges applicable to such withdrawals).

We do not pay the death benefit if you die after you switch to the Income Phase.
However, if you die during the Income Phase, your Beneficiary receives any
remaining guaranteed income payments in accordance with the income option you
selected. SEE INCOME OPTIONS ON PAGE 14.

You name your Beneficiary. You may change the Beneficiary at any time, unless
you previously made an irrevocable Beneficiary designation.

We pay the death benefit when we receive satisfactory proof of death. We
consider the following satisfactory proof of death:

1. a certified copy of the death certificate; or

2. a certified copy of a decree of a court of competent jurisdiction as to
the finding of death; or

3. a written statement by a medical doctor who attended the deceased at the
time of death; or

4. any other proof satisfactory to us.

We may require additional proof before we pay the death benefit.

The death benefit payment must begin immediately upon receipt of all necessary
documents. In any event, the death benefit must be paid within 5 years of the
date of death unless the Beneficiary elects to have it payable in the form of an
income option. If the Beneficiary elects an income option, it must be paid over
the Beneficiary's lifetime or for a period not extending beyond the
Beneficiary's life expectancy. Payments must begin within one year of your
death.

If the Beneficiary is the spouse of a deceased owner, he or she can elect to
continue the Contract at the then current value. If the Beneficiary/spouse
continues the contract, we do not pay a death benefit to him or her.

If a Beneficiary does not elect a specific form of pay out within 60 days of our
receipt of proof of death, we pay a lump sum death benefit to the Beneficiary.

12
<PAGE> 19

- ----------------------------------------------------------------
- ----------------------------------------------------------------
EXPENSES
- ----------------------------------------------------------------
- ----------------------------------------------------------------

There are charges and expenses associated with your contract. These charges and
expenses reduce your investment return. We will not increase the contract
maintenance fee or the insurance and withdrawal charges under your contract.
However, the investment charges under your contract may increase or decrease.
Some states may require that we charge less than the amounts described below.

INSURANCE CHARGES

The amount of this charge is 1.52% annually, of the value of your contract
invested in the Variable Portfolios. We deduct the charge daily.

The insurance charge compensates us for the mortality and expense risks and the
costs of contract distribution assumed by Anchor National.

If these charges do not cover all of our expenses, we will pay the difference.
Likewise, if these charges exceed our expenses, we will keep the difference.

WITHDRAWAL CHARGES

The contract provides a free withdrawal amount every year. SEE ACCESS TO YOUR
MONEY ON PAGE 11. If you take money out in excess of the free withdrawal amount,
and upon a full surrender, you may incur a withdrawal charge.

We apply a withdrawal charge against each Purchase Payment you put into the
contract. After a Purchase Payment has been in the contract for 7 complete
years, no withdrawal charge applies. The withdrawal charge equals a percentage
of the Purchase Payment you take out of the contract. The withdrawal charge
percentage declines each year a Purchase Payment is in the contract, as follows:

<TABLE>
<CAPTION>
- -------------------------------------------------------------------
YEAR 1 2 3 4 5 6 7 8
- -------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WITHDRAWAL CHARGE 7% 6% 5% 4% 3% 2% 1% 0%
- -------------------------------------------------------------------
</TABLE>

When calculating the withdrawal charge, we treat withdrawals as coming first
from the Purchase Payments that have been in your contract the longest. However,
for tax purposes, your withdrawals are considered earnings first, then Purchase
Payments.

Whenever possible, we deduct the withdrawal charge from the money remaining in
your contract. If you withdraw all of your contract value, we deduct any
applicable withdrawal charges from the amount withdrawn.

We will not assess a withdrawal charge for money withdrawn to pay a death
benefit or to pay contract fees or charges. Additionally, we will not assess a
withdrawal charge when you switch to the Income Phase.

Withdrawals made prior to age 59 1/2 may result in tax penalties. SEE TAXES ON
PAGE 15.
INVESTMENT CHARGES

Charges are deducted from your Variable Portfolios for the advisory and other
expenses of the Variable Portfolios. THE FEE TABLES LOCATED ON PAGE 4 illustrate
these charges and expenses. For more detailed information on these investment
charges, refer to the prospectuses for the Trusts, enclosed or attached.

CONTRACT MAINTENANCE FEE

During the Accumulation Phase, we subtract a contract maintenance fee from your
account once per year. This charge compensates us for the cost of contract
administration. We deduct the $35 contract maintenance fee ($30 in North Dakota
and Utah) from your account value on your contract anniversary. If you withdraw
your entire contract value, we deduct the fee from that withdrawal.

If your contract value is $50,000 or more on your contract anniversary date, we
will waive the charge. This waiver is subject to change without notice.

TRANSFER FEE

We currently permit 15 free transfers between investment options each contract
year. We charge you $25 for each additional transfer that contract year ($10 in
Pennsylvania and Texas). SEE INVESTMENT OPTIONS ON PAGE 7.

PREMIUM TAX

Certain states charge the Company a tax on the premiums you pay into the
contract. We deduct from your contract these premium tax charges. Currently we
deduct the charge for premium taxes when you take a full withdrawal or begin the
Income Phase of the contract. In the future, we may assess this deduction at the
time you put Purchase Payment(s) into the contract or upon payment of a death
benefit.

APPENDIX C provides more information about premium taxes.

INCOME TAXES

We do not currently deduct income taxes from your contract. We reserve the right
to do so in the future.

REDUCTION OR ELIMINATION OF CHARGES AND EXPENSES, AND ADDITIONAL AMOUNTS
CREDITED

Sometimes sales of the contracts to groups of similarly situated individuals may
lower our administrative and/or sales expenses. We reserve the right to reduce
or waive certain charges and expenses when this type of sale occurs. In
addition, we may also credit additional interest to policies sold to such
groups. We determine which groups are eligible for such treatment. Some of the
criteria we evaluate to make a determination are: size of the group; amount of
expected Purchase Payments; relationship existing between us and prospective
purchaser; nature of the purchase; length of time a group of contracts is
expected to remain active; purpose of the purchase and whether that purpose
increases the

13
<PAGE> 20

likelihood that our expenses will be reduced; and/or any other factors that we
believe indicate that administrative and/or sales expenses may be reduced.

Anchor National may make such a determination regarding sales to its employees,
it affiliates' employees and employees of currently contracted broker-dealers;
its registered representatives and immediate family members of all of those
described.

We reserve the right to change or modify any such determination or the treatment
applied to a particular group, at any time.
- ----------------------------------------------------------------
- ----------------------------------------------------------------
INCOME OPTIONS
- ----------------------------------------------------------------
- ----------------------------------------------------------------

ANNUITY DATE

During the Income Phase, we use the money accumulated in your contract to make
regular income payments to you. You may switch to the Income Phase any time
after your 2nd contract anniversary. You select the month and year you want
income payments to begin. The first day of that month is the Annuity Date. You
may change your Annuity Date, so long as you do so at least seven days before
the income payments are scheduled to begin. Once you begin receiving income
payments, you cannot change your income option. Except as indicated under Option
5 below, once you begin receiving income payments, you cannot otherwise access
your money through a withdrawal or surrender.

Income payments must begin on or before your 90th birthday or on your tenth
contract anniversary, whichever occurs later. If you do not choose an Annuity
Date, your income payments will automatically begin on this date. Certain states
may require your income payments to start earlier.

If the Annuity Date is past your 85th birthday, your contract could lose its
status as an annuity under Federal tax laws. This may cause you to incur adverse
tax consequences.

In addition, most Qualified contracts require you to take minimum distributions
after you reach age 70 1/2. SEE TAXES ON PAGE 15.

INCOME OPTIONS

Currently, this Contract offers five income options. If you elect to receive
income payments but do not select an option, your income payments will be made
in accordance with option 4 for a period of 10 years. For income payments based
on joint lives, we pay according to option 3.

We base our calculation of income payments on the life of the Annuitant and the
annuity rates set forth in your contract. As the contract owner, you may change
the Annuitant at any time prior to the Annuity Date. You must notify us if the
Annuitant dies before the Annuity Date and designate a new Annuitant.
OPTION 1 - LIFE INCOME ANNUITY

This option provides income payments for the life of the Annuitant. Income
payments stop when the Annuitant dies.

OPTION 2 - JOINT AND SURVIVOR LIFE ANNUITY

This option provides income payments for the life of the Annuitant and for the
life of another designated person. Upon the death of either person, we will
continue to make income payments during the lifetime of the survivor. Income
payments stop when the survivor dies.

OPTION 3 - JOINT AND SURVIVOR LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED

This option is similar to option 2 above, with an additional guarantee of
payments for at least 10 years. If the Annuitant and the survivor die before all
of the guaranteed income payments have been made, the remaining payments are
made to the Beneficiary under your contract.

OPTION 4 - LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED

This option is similar to option 1 above. In addition, this option provides a
guarantee that income payments will be made for at least 10 or 20 years. You
select the number of years. If the Annuitant dies before all guaranteed income
payments are made, the remaining income payments go to the Beneficiary under
your contract.

OPTION 5 - INCOME FOR A SPECIFIED PERIOD

This option provides income payments for a guaranteed period ranging from 5 to
30 years. If the Annuitant dies before all the guaranteed income payments are
made, the remaining income payments are made to the Beneficiary under your
contract. Additionally, if variable income payments are elected under this
option, you (or the Beneficiary under the contract if the Annuitant dies prior
to all guaranteed payments being made) may redeem the contract value after the
Annuity Date. The amount available upon such redemption would be the discounted
present value of any remaining guaranteed payments.

The value of an Annuity Unit, regardless of the option chosen, takes into
account the Mortality and Expense Risk Charge. Since Option 5 does not contain
an element of mortality risk, no benefit is derived from this charge.

Please read the Statement of Additional Information ("SAI") for a more detailed
discussion of the income options.

FIXED OR VARIABLE INCOME PAYMENTS

You can choose income payments that are fixed, variable or both. If at the date
when income payments begin you are invested in the Variable Portfolios only,
your income payments will be variable. If your money is only in fixed accounts
at that time, your income payments will be fixed in amount. Further, if you are
invested in both fixed and variable investment options when income payments
begin, your

14
<PAGE> 21

payments will be fixed and variable. If income payments are fixed, Anchor
National guarantees the amount of each payment. If the income payments are
variable the amount is not guaranteed.

INCOME PAYMENTS

We make income payments on a monthly, quarterly, semiannual or annual basis. You
instruct us to send you a check or to have the payments directly deposited into
your bank account. If state law allows, we distribute annuities with a contract
value of $5,000 or less in a lump sum. Also, if the selected income option
results in income payments of less than $50 per payment, we may decrease the
frequency of payments, state law allowing.

If you are invested in the Variable Portfolios after the Annuity date, your
income payments vary depending on four things:

- for life options, your age when payments begin, and;

- the value of your contract in the Variable Portfolios on the Annuity
Date, and;

- the 3.5% assumed investment rate used in the annuity table for the
contract, and;

- the performance of the Variable Portfolios in which you are invested
during the time you receive income payments.

If you are invested in both the fixed account options and the Variable
Portfolios after the Annuity Date, the allocation of funds between the fixed and
variable options also impacts the amount of your annuity payments.

TRANSFERS DURING THE INCOME PHASE

During the Income Phase, one transfer per month is permitted between the
Variable Portfolios. No other transfers are allowed during the Income Phase.

DEFERMENT OF PAYMENTS

We may defer making fixed payments for up to six months, or less if required by
law. Interest is credited to you during the deferral period.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
TAXES
- ----------------------------------------------------------------
- ----------------------------------------------------------------

NOTE: WE PREPARED THE FOLLOWING INFORMATION ON TAXES AS A GENERAL DISCUSSION OF
THE SUBJECT. IT IS NOT TAX ADVICE. WE CAUTION YOU TO SEEK COMPETENT TAX ADVICE
ABOUT YOUR OWN CIRCUMSTANCES. WE DO NOT GUARANTEE THE TAX STATUS OF YOUR
ANNUITY. TAX LAWS CONSTANTLY CHANGE, THEREFORE WE CANNOT GUARANTEE THAT THE
INFORMATION CONTAINED HEREIN IS COMPLETE AND/OR ACCURATE.

ANNUITY CONTRACTS IN GENERAL

The Internal Revenue Code ("IRC") provides for special rules regarding the tax
treatment of annuity contracts. Generally, taxes on the earnings in your annuity
contract are deferred until you take the money out. Qualified retirement
investments automatically provide tax deferral regardless of whether the
underlying contract is an annuity. Different rules apply depending on how you
take the money out and whether your contract is Qualified or Non-qualified.

If you do not purchase your contract under a pension plan, a specially sponsored
employer program or an individual retirement account, your contract is referred
to as a Non-qualified contract. A Non-qualified contract receives different tax
treatment than a Qualified contract. In general, your cost basis in a
Non-qualified contract is equal to the Purchase Payments you put into the
contract. You have already been taxed on the cost basis in your contract.

If you purchase your contract under a pension plan, a specially sponsored
employer program or as an individual retirement account, your contract is
referred to as a Qualified contract. Examples of qualified plans are: Individual
Retirement Accounts ("IRAs"), Roth IRAs, Tax-Sheltered Annuities (referred to as
403(b) contracts), H.R. 10 Plans (referred to as Keogh Plans) and pension and
profit sharing plans, including 401(k) plans. Typically you have not paid any
tax on the Purchase Payments used to buy your contract and therefore, you have
no cost basis in your contract.

TAX TREATMENT OF DISTRIBUTIONS -
NON-QUALIFIED CONTRACTS

If you make a withdrawal from a Non-qualified contract, the IRC treats such a
withdrawal as first coming from the earnings and then as coming from your
Purchase Payments. For income payments, any portion of each payment that is
considered a return of your Purchase Payment will not be taxed. Withdrawn
earnings are treated as income to you and are taxable. The IRC provides for a
10% penalty tax on any earnings that are withdrawn other than in conjunction
with the following circumstances: (1) after reaching age 59 1/2; (2) when paid
to your Beneficiary after you die; (3) after you become disabled (as defined in
the IRC); (4) when paid in a series of substantially equal installments made for
your life or for the joint lives of you and you Beneficiary; (5) under an
immediate annuity; or (6) which come from Purchase Payments made prior to August
14, 1982.

TAX TREATMENT OF DISTRIBUTIONS - QUALIFIED CONTRACTS

Generally, you have not paid any taxes on the Purchase Payments used to buy a
Qualified contract. Any amount of money you take out as a withdrawal or as
income payments is taxable income. The IRC further provides for a 10% penalty
tax on any withdrawal or income payment paid to you other than in conjunction
with the following circumstances:

15
<PAGE> 22

(1) after reaching age 59 1/2; (2) when paid to your Beneficiary after you die;
(3) after you become disabled (as defined in the IRC); (4) in a series of
substantially equal installments made for your life or for the joint lives of
you and your Beneficiary; (5) to the extent such withdrawals do not exceed
limitations set by the IRC for amounts paid during the taxable year for medical
care; (6) to fund higher education expenses (as defined in IRC); (7) to fund
certain first-time home purchase expenses; and, except in the case of an IR; (8)
when you separate from service after attaining age 55; and (9) when paid to an
alternate payee pursuant to a qualified domestic relations order.

The IRC limits the withdrawal of Purchase Payments from certain Tax-Sheltered
Annuities. Withdrawals can only be made when an owner: (1) reaches age 59 1/2;
(2) leaves his or her job; (3) dies; (4) becomes disabled (as defined in the
IRC); or (5) experiences a hardship (as defined in the IRC). In the case of
hardship, the owner can only withdraw Purchase Payments.

MINIMUM DISTRIBUTIONS

Generally, the IRS requires that you begin taking annual distributions from
qualified annuity contracts by April 1 of the calendar year following the later
of (1) the calendar year in which you attain age 70 1/2 or (2) the calendar year
in which you retire. Failure to satisfy minimum distribution requirements may
result in a tax penalty. You should consult your tax advisor for more
information.

DIVERSIFICATION

The IRC imposes certain diversification requirements on the underlying
investments for a variable annuity. We believe that each underlying Variable
Portfolios' management monitors the Variable Portfolios so as to comply with
these requirements. To be treated as a variable annuity for tax purposes, the
underlying investments must meet these requirements.

The diversification regulations do not provide guidance as to the circumstances
under which you, because of the degree of control you exercise over the
underlying investments, and not Anchor National, would be considered the owner
of the shares of the Variable Portfolios. It is unknown to what extent owners
are permitted to select investments, to make transfers among Variable Portfolios
or the number and type of Variable Portfolios owners may select from. If any
guidance is provided which is considered a new position, then the guidance would
generally be applied prospectively. However, if such guidance is considered not
to be a new position, it may be applied retroactively. This would mean you, as
the owner of the contract, could be treated as the owner of the underlying
Variable Portfolios. Due to the uncertainty in this area, we reserve the right
to modify the contract in an attempt to maintain favorable tax treatment.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
PERFORMANCE
- ----------------------------------------------------------------
- ----------------------------------------------------------------

We advertise the Cash Management Portfolio's yield and effective yield. In
addition, the other Variable Portfolios advertise total return, gross yield and
yield-to-maturity. These figures represent past performance of the Variable
Portfolios. These performance numbers do not indicate future results.

When we advertise performance for periods prior to the date the contracts were
first issued, we derive the figures from the performance of the corresponding
portfolios for the Trusts, if available. We modify these numbers to reflect
charges and expenses as if the contract was in existence during the period
stated in the advertisement. Figures calculated in this manner do not represent
actual historic performance of the particular Variable Portfolio.

Consult the SAI for more detailed information regarding the calculation of
performance data. The performance of each Variable Portfolio may also be
measured against unmanaged market indices. The indices we use include but are
not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, the
Russell 1000 Growth Index, the Morgan Stanley Capital International Europe,
Australia and Far East Index ("EAFE") and the Morgan Stanley Capital
International World Index. We may compare the Variable Portfolios' performance
to that of other variable annuities with similar objectives and policies as
reported by independent ranking agencies such as Morningstar, Inc., Lipper
Analytical Services, Inc. or Variable Annuity Research & Data Service ("VARDS").

Anchor National may also advertise the rating and other information assigned to
it by independent industry ratings organizations. Some of those organizations
are A.M. Best Company ("A.M. Best"), Moody's Investor's Service ("Moody's"),
Standard & Poor's Insurance Rating Services ("S&P"), and Duff & Phelps. A.M.
Best's and Moody's ratings reflect their current opinion of our financial
strength and performance in comparison to others in the life and health
insurance industry. S&P's and Duff & Phelps' ratings measure the ability of an
insurance company to meet its obligations under insurance policies it issues.
These two ratings do not measure the insurer's ability to meet non-policy
obligations. Ratings in general do not relate to the performance of the Variable
Portfolios.

- ----------------------------------------------------------------
- ----------------------------------------------------------------
OTHER INFORMATION
- ----------------------------------------------------------------
- ----------------------------------------------------------------

ANCHOR NATIONAL

Anchor National is a stock life insurance company originally organized under the
laws of the state of California in April 1965. On January 1, 1996, Anchor
National redomesticated under the laws of the state of Arizona.

16
<PAGE> 23

Anchor National and its affiliates, SunAmerica Life Insurance Company, First
SunAmerica Life Insurance Company, CalAmerica Life Insurance Company, SunAmerica
National Life Insurance Company, SunAmerica Asset Management Corp., Resources
Trust Company, and six broker-dealers, specialize in retirement savings and
investment products and services. Business focuses include fixed and variable
annuities, mutual funds, broker-dealer services and trust administration
services.

THE SEPARATE ACCOUNT

Anchor National originally established a separate account, Variable Separate
Account ("separate account"), under Arizona law on January 1, 1996 when it
assumed the separate account, originally established under California law on
June 25, 1981. The separate account is registered with the SEC as a unit
investment trust under the Investment Company Act of 1940, as amended.

Anchor National owns the assets in the separate account. However, the assets in
the separate account are not chargeable with liabilities arising out of any
other business conducted by Anchor National. Income gains and losses (realized
and unrealized) resulting from assets in the separate account are credited to or
charged against the separate account without regard to other income gains or
losses of Anchor National.

THE GENERAL ACCOUNT

Money allocated to the fixed account options goes into Anchor National's general
account. The general account consists of all of Anchor National's assets other
than assets attributable to a separate account. All of the assets in the general
account are chargeable with the claims of any Anchor National contract holders
as well as all of its creditors. The general account funds are invested as
permitted under state insurance laws.

DISTRIBUTION OF THE CONTRACT

Registered representatives of broker-dealers sell the contract. We pay
commissions to these representatives for the sale of the contracts. We do not
expect the total commissions to exceed 7% of your Purchase Payments. We may also
pay a bonus to representatives for contracts which stay active for a particular
period of time, in addition to standard commissions. We do not deduct
commissions paid to registered representatives directly from your Purchase
Payments.

From time to time, we may pay or allow additional promotional incentives in the
form of cash or other compensation. We reserve the right to offer these
additional incentives only to certain broker-dealers that sell or are expected
to sell, certain minimum amounts of the contract, or other contracts offered by
us. Promotional incentives may change at any time.

SunAmerica Capital Services, Inc., 733 Third Avenue, 4th Floor, New York, New
York 10017 distributes the contracts. SunAmerica Capital Services, an affiliate
of Anchor National, is registered as a broker-dealer under the Exchange Act of
1934 and is a member of the National Association of Securities Dealers, Inc. No
underwriting fees are paid in connection with the distribution of the contracts.

ADMINISTRATION

We are responsible for the administrative servicing of your contract. Please
contact our Annuity Service Center
at 1-800-445-SUN2, if you have any comment, question or service request.

We send out transaction confirmations and quarterly statements. It is your
responsibility to review these documents carefully and notify us of any
inaccuracies immediately. We investigate all inquiries. To the extent that we
believe we made an error, we retroactively adjust your contract, provided you
notify us within 30 days of receiving the transaction confirmation or quarterly
statement. Any other adjustments we deem warranted are made as of the time we
receive notice of the error.

YEAR 2000

The Year 2000 issue arose from computer programs written using two digits rather
than four digits to define the applicable year. This possibly could have caused
a failure of the information technology systems (IT systems) and other equipment
containing imbedded technology (non-IT systems) in the year 2000. The Company
implemented a plan to address the Year 2000 issue and to assess Year 2000 issues
relating to third parties with which the Company has critical relationships. The
Company's cost to make necessary repairs had no significant impact on its
results of operations. The Company has not experienced any business disruption
from the Year 2000 issue. Its IT and non-IT systems were compliant on January 1,
2000, and there have been no problems related to any third parties compliance.

LEGAL PROCEEDINGS

There are no pending legal proceedings affecting the separate account. Anchor
National and its subsidiaries engage in various kinds of routine litigation. In
management's opinion, these matters are not of material importance to their
respective total assets nor are they material with respect to the separate
account.

OWNERSHIP

The Polaris Variable Annuity is a Flexible Payment Group Deferred Annuity
contract. We issue a group contract to a contract holder for the benefit of the
participants in the group. As a participant in the group, you will receive a
certificate which evidences your ownership. As used in this prospectus, the term
contract refers to your certificate. In

17
<PAGE> 24

some states, a Flexible Payment Individual Modified Guaranteed and Variable
Deferred Annuity contract is available instead. Such a contract is identical to
the contract described in this prospectus, with the exception that we issue it
directly to the owner.

CUSTODIAN

State Street Bank and Trust Company, 255 Franklin Street, Boston, Massachusetts
02110, serves as the custodian of the assets of the separate account. Anchor
National pays State Street Bank for services provided, based on a schedule of
fees.

INDEPENDENT ACCOUNTANTS

The audited consolidated financial statements of the Company as of December 31,
1999, December 31, 1998 and September 30, 1998 and for the year ended December
31, 1999, for the three months ended December 31, 1998, and for each of the two
fiscal years in the period ended September 30, 1998 incorporated by reference in
this prospectus have been so included on reliance on the report of
PricewaterhouseCoopers LLP, independent accountants, given on the authority of
said firm as experts in accounting and auditing.

LEGAL MATTERS

The organization of Anchor National, its authority to issue the contracts and
the validity of the form of the contracts have been passed upon by Susan L.
Harris, Senior Vice President and General Counsel of SunAmerica Inc., of which
Anchor National is an indirect wholly-owned subsidiary.

REGISTRATION STATEMENT

A registration statement has been filed with the SEC under the Securities Act of
1933 relating to the contract. This prospectus does not contain all the
information in the registration statement as permitted by SEC regulations. The
omitted information can be obtained from the SEC's principal office in
Washington, D.C., upon payment of a prescribed fee.

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

TABLE OF CONTENTS OF
STATEMENT OF ADDITIONAL INFORMATION
- ----------------------------------------------------------------
- ----------------------------------------------------------------

Additional information concerning the operations of the separate account is
contained in a Statement of Additional Information ("SAI"), which is available
without charge upon written request addressed to us at our Annuity Service
Center, P.O. Box 54299, Los Angeles, California 90054-0299 or by calling
(800)445-SUN2. The contents of the SAI are tabulated below.

<TABLE>
<S> <C>
Separate Account.............................. 3
General Account............................... 3
Performance Data.............................. 4
Income Payments............................... 9
Annuity Unit Values........................... 10
Taxes......................................... 12
Distribution of Contracts..................... 16
Financial Statements.......................... 16
</TABLE>

18
<PAGE> 25

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDIX A -- CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

<TABLE>
<CAPTION>
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR 11/30/99-
PORTFOLIOS 11/30/94 11/30/95 11/30/96 11/30/97 11/30/98 11/30/99 12/31/99
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Capital Appreciation (Inception Date -- 2/12/93)
Beginning AUV......... $ 11.14 $ 10.64 $ 14.19 $ 17.63 $ 21.26 $ 23.72 $ 36.39
Ending AUV............ $ 10.64 $ 14.19 $ 17.63 $ 21.26 $ 23.72 $ 36.39 $ 43.17
Ending Number of
AUs................ 8,462,152 13,247,155 20,470,395 24,889,133 24,068,557 21,898,142 21,764,629
- --------------------------------------------------------------------------------------------------------------------------
Growth (Inception Date -- 2/19/93)
Beginning AUV......... $ 10.78 $ 10.41 $ 12.95 $ 16.32 $ 20.31 $ 24.41 $ 29.74
Ending AUV............ $ 10.41 $ 12.95 $ 16.32 $ 20.31 $ 24.41 $ 29.74 $ 32.61
Ending Number of
AUs................ 3,950,678 5,968,263 7,557,844 9,747,428 9,838,138 8,941,621 8,878,474
- --------------------------------------------------------------------------------------------------------------------------
Natural Resources (Inception Date -- 10/31/94)
Beginning AUV......... $ 10.00 $ 9.27 $ 10.78 $ 12.13 $ 11.14 $ 9.30 $ 11.40
Ending AUV............ $ 9.27 $ 10.78 $ 12.13 $ 11.14 $ 9.30 $ 11.40 $ 12.50
Ending Number of
AUs................ 51,412 848,159 2,171,050 2,937,198 2,605,274 2,283,074 2,218,703
- --------------------------------------------------------------------------------------------------------------------------
Government and Quality Bond (Inception Date -- 2/22/93)
Beginning AUV......... $ 10.32 $ 9.81 $ 11.51 $ 11.94 $ 12.65 $ 13.66 $ 13.37
Ending AUV............ $ 9.81 $ 11.51 $ 11.94 $ 12.65 $ 13.66 $ 13.37 $ 13.28
Ending Number of
AUs................ 7,008,717 8,504,677 9,176,239 10,047,042 14,076,819 12,612,572 12,309,470
- --------------------------------------------------------------------------------------------------------------------------
Emerging Markets (Inception Date -- 6/2/97)
Beginning AUV......... -- -- -- $ 10.00 $ 7.97 $ 6.14 $ 8.99
Ending AUV............ -- -- -- $ 7.97 $ 6.14 $ 8.99 $ 10.77
Ending Number of
AUs................ -- -- -- 1,751,922 1,352,484 1,956,342 2,341,461
- --------------------------------------------------------------------------------------------------------------------------
International Diversified Equities (Inception Date -- 10/31/94)
Beginning AUV......... $ 10.00 $ 9.77 $ 10.07 $ 11.39 $ 11.62 $ 13.53 $ 15.49
Ending AUV............ $ 9.77 $ 10.07 $ 11.39 $ 11.62 $ 13.53 $ 15.49 $ 16.92
Ending Number of
AUs................ 271,316 4,659,066 12,762,343 18,010,557 17,917,499 16,071,377 15,905,912
- --------------------------------------------------------------------------------------------------------------------------
Global Equities (Inception Date -- 2/9/93)
Beginning AUV......... $ 10.86 $ 11.43 $ 13.01 $ 15.15 $ 16.90 $ 19.21 $ 24.20
Ending AUV............ $ 11.43 $ 13.01 $ 15.15 $ 16.90 $ 19.21 $ 24.20 $ 26.57
Ending Number of
AUs................ 11,705,418 12,350,883 15,583,207 18,376,185 17,594,064 15,218,999 15,364,906
- --------------------------------------------------------------------------------------------------------------------------
International Growth and Income (Inception Date -- 6/2/97)
Beginning AUV......... -- -- -- $ 10.00 $ 10.33 $ 11.16 $ 13.40
Ending AUV............ -- -- -- $ 10.33 $ 11.16 $ 13.40 $ 14.07
Ending Number of
AUs................ -- -- -- 2,721,228 3,306,665 4,307,535 4,319,856
- --------------------------------------------------------------------------------------------------------------------------
Aggressive Growth (Inception Date -- 6/3/96)
Beginning AUV......... -- -- $ 10.00 $ 10.29 $ 11.51 $ 11.86 $ 19.02
Ending AUV............ -- -- $ 10.29 $ 11.51 $ 11.86 $ 19.02 $ 24.30
Ending Number of
AUs................ -- -- 3,165,900 7,215,024 7,059,502 7,354,489 7,476,506
- --------------------------------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth (Inception Date -- 4/1/99)
Beginning AUV......... -- -- -- -- -- -- $ 14.23
Ending AUV............ -- -- -- -- -- $ 14.23 $ 16.31
Ending Number of
AUs................ -- -- -- -- -- 869,761 1,068,886
- --------------------------------------------------------------------------------------------------------------------------
Real Estate (Inception Date -- 6/2/97)
Beginning AUV......... -- -- -- $ 10.00 $ 11.44 $ 9.80 $ 8.50
Ending AUV............ -- -- -- $ 11.44 $ 9.80 $ 8.50 $ 8.91
Ending Number of
AUs................ -- -- -- 1,632,804 2,521,169 2,159,442 1,934,426
- --------------------------------------------------------------------------------------------------------------------------
Putnam Growth (Inception Date -- 2/9/93)
Beginning AUV......... $ 9.92 $ 9.79 $ 12.60 $ 14.88 $ 18.47 $ 22.29 $ 28.36
Ending AUV............ $ 9.79 $ 12.60 $ 14.88 $ 18.47 $ 22.29 $ 28.36 $ 31.67
Ending Number of
AUs................ 7,610,104 8,932,998 10,354,025 11,336,732 12,052,558 11,402,199 11,286,031
- --------------------------------------------------------------------------------------------------------------------------
MFS Growth and Income** (Inception Date -- 2/9/93)
Beginning AUV......... $ 10.65 $ 9.79 $ 12.81 $ 14.94 $ 17.63 $ 20.46 $ 22.55
Ending AUV............ $ 9.79 $ 12.81 $ 14.94 $ 17.63 $ 20.46 $ 22.55 $ 23.67
Ending Number of
AUs................ 10,477,818 11,457,899 12,077,737 11,714,450 10,439,634 9,723,097 9,598,954
- --------------------------------------------------------------------------------------------------------------------------
Alliance Growth (Inception Date -- 2/9/93)
Beginning AUV......... $ 10.78 $ 10.53 $ 15.44 $ 19.46 $ 24.51 $ 32.81 $ 44.31
Ending AUV............ $ 10.53 $ 15.44 $ 19.46 $ 24.51 $ 32.81 $ 44.31 $ 48.56
Ending Number of
AUs................ 4,997,778 10,560,070 18,333,555 24,050,697 24,146,276 26,154,552 25,819,661
- --------------------------------------------------------------------------------------------------------------------------
* Formerly named Growth/Phoenix and managed by Phoenix Investment Counsel, Inc.
</TABLE>

A-1
<PAGE> 26

<TABLE>
<CAPTION>
FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR FISCAL YEAR 11/30/99-
PORTFOLIOS 11/30/94 11/30/95 11/30/96 11/30/97 11/30/98 11/30/99 12/31/99
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
"Dogs" of Wall Street (Inception Date -- 4/1/98)
Beginning AUV......... -- -- -- -- $ 10.00 $ 9.71 $ 9.12
Ending AUV............ -- -- -- -- $ 9.71 $ 9.12 $ 8.99
Ending Number of
AUs................ -- -- -- -- 1,450,214 1,509,434 1,368,990
- --------------------------------------------------------------------------------------------------------------------------
Venture Value (Inception Date -- 10/31/94)
Beginning AUV......... $ 10.00 $ 9.77 $ 13.29 $ 16.68 $ 21.30 $ 23.36 $ 26.57
Ending AUV............ $ 9.77 $ 13.29 $ 16.68 $ 21.30 $ 23.36 $ 26.57 $ 27.88
Ending Number of
AUs................ 355,083 11,270,792 29,247,554 44,892,446 46,069,429 42,175,145 41,825,421
- --------------------------------------------------------------------------------------------------------------------------
Federated Value (Inception Date -- 6/3/96)
Beginning AUV......... -- -- $ 10.00 $ 11.00 $ 13.62 $ 15.86 $ 16.43
Ending AUV............ -- -- $ 11.00 $ 13.62 $ 15.86 $ 16.43 $ 16.89
Ending Number of
AUs................ -- -- 1,021,137 3,095,513 4,255,000 4,164,599 4,001,010
- --------------------------------------------------------------------------------------------------------------------------
Growth-Income (Inception Date -- 2/9/93)
Beginning AUV......... $ 10.47 $ 10.09 $ 13.32 $ 16.70 $ 21.41 $ 25.71 $ 33.11
Ending AUV............ $ 10.09 $ 13.32 $ 16.70 $ 21.41 $ 25.71 $ 33.11 $ 35.91
Ending Number of
AUs................ 8,329,322 12,560,865 18,546,142 24,795,824 25,801,808 24,491,425 24,109,131
- --------------------------------------------------------------------------------------------------------------------------
Utility (Inception Date -- 6/3/96)
Beginning AUV......... -- -- $ 10.00 $ 10.67 $ 12.74 $ 14.56 $ 15.16
Ending AUV............ -- -- $ 10.67 $ 12.74 $ 14.56 $ 15.16 $ 15.11
Ending Number of
AUs................ -- -- 543,461 1,541,346 2,120,487 2,046,427 2,024,299
- --------------------------------------------------------------------------------------------------------------------------
Asset Allocation (Inception Date -- 7/1/93)
Beginning AUV......... $ 10.30 $ 10.17 $ 12.64 $ 14.97 $ 17.98 $ 18.22 $ 19.10
Ending AUV............ $ 10.17 $ 12.64 $ 14.97 $ 17.98 $ 18.22 $ 19.10 $ 19.81
Ending Number of
AUs................ 10,372,954 15,418,350 19,940,733 25,272,776 26,043,996 21,080,060 20,767,631
- --------------------------------------------------------------------------------------------------------------------------
MFS Total Return** (Inception Date -- 10/31/94)
Beginning AUV......... $ 10.00 $ 9.95 $ 12.33 $ 13.82 $ 15.45 $ 17.28 $ 18.50
Ending AUV............ $ 9.95 $ 12.33 $ 13.82 $ 15.45 $ 17.28 $ 18.50 $ 18.60
Ending Number of
AUs................ 51,759 2,441,901 4,583,234 5,415,312 5,465,650 5,719,070 5,709,183
- --------------------------------------------------------------------------------------------------------------------------
SunAmerica Balanced (Inception Date -- 6/3/96)
Beginning AUV......... -- -- $ 10.00 $ 11.04 $ 13.22 $ 15.60 $ 18.23
Ending AUV............ -- -- $ 11.04 $ 13.22 $ 15.60 $ 18.23 $ 19.69
Ending Number of
AUs................ -- -- 817,039 2,447,948 4,179,545 5,352,344 5,364,585
- --------------------------------------------------------------------------------------------------------------------------
Worldwide High Income (Inception Date -- 10/31/94)
Beginning AUV......... $ 10.00 $ 9.95 $ 11.36 $ 14.20 $ 15.98 $ 13.57 $ 15.23
Ending AUV............ $ 9.95 $ 11.36 $ 14.20 $ 15.98 $ 13.57 $ 15.23 $ 15.70
Ending Number of
AUs................ 53,315 1,040,828 3,196,739 6,368,247 5,463,589 4,234,687 4,110,589
- --------------------------------------------------------------------------------------------------------------------------
High-Yield Bond (Inception Date -- 2/9/93)
Beginning AUV......... $ 10.98 $ 10.35 $ 11.48 $ 12.99 $ 14.66 $ 14.25 $ 14.71
Ending AUV............ $ 10.35 $ 11.48 $ 12.99 $ 14.66 $ 14.25 $ 14.71 $ 14.87
Ending Number of
AUs................ 5,370,944 7,075,451 8,358,195 11,443,250 12,597,083 10,532,444 10,247,398
- --------------------------------------------------------------------------------------------------------------------------
Corporate Bond (Inception Date -- 7/1/93)
Beginning AUV......... $ 10.12 $ 9.63 $ 11.10 $ 11.65 $ 12.54 $ 13.15 $ 12.78
Ending AUV............ $ 9.63 $ 11.10 $ 11.65 $ 12.54 $ 13.15 $ 12.78 $ 12.76
Ending Number of
AUs................ 1,643,694 2,623,065 3,059,808 4,235,990 5,896,471 5,339,302 5,225,508
- --------------------------------------------------------------------------------------------------------------------------
Global Bond (Inception Date -- 7/1/93)
Beginning AUV......... $ 10.25 $ 9.78 $ 11.20 $ 12.25 $ 13.08 $ 14.40 $ 14.11
Ending AUV............ $ 9.78 $ 11.20 $ 12.25 $ 13.08 $ 14.40 $ 14.11 $ 14.09
Ending Number of
AUs................ 4,532,386 5,288,158 5,413,149 6,164,455 5,906,756 5,199,731 4,972,504
- --------------------------------------------------------------------------------------------------------------------------
Cash Management (Inception Date -- 4/1/99)
Beginning AUV......... $ 10.07 $ 10.27 $ 10.67 $ 11.04 $ 4.43 $ 11.83 $ 12.20
Ending AUV............ $ 10.27 $ 10.67 $ 11.04 $ 11.43 $ 11.83 $ 12.20 $ 12.25
Ending Number of
AUs................ 8,623,034 8,372,979 8,005,908 11,224,451 11,160,200 15,616,078 16,598,506
- --------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>

** Formerly named Balanced/Phoenix and managed by Phoenix Investment Counsel,
Inc.

AUV -- Accumulation Unit Value

AU -- Accumulation Units

A-2
<PAGE> 27

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDIX B - MARKET VALUE ADJUSTMENT ("MVA")
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

The MVA reflects the impact that changing interest rates have on the value of
money invested at a fixed interest rate. The longer the period of time remaining
in the term you initially agreed to leave your money in the fixed account
option, the greater the impact of changing interest rates. The impact of the MVA
can be either positive or negative, and is computed by multiplying the amount
withdrawn, transferred or switched to the Income Phase by the following factor:

N/12
[(1+I/(1+J+0.005)] - 1

The MVA formula may differ in certain states
where:

I is the interest rate you are earning on the money invested in the
fixed account option;

J is the interest rate then currently available for the period of time
equal to the number of years remaining in the term you initially agreed
to leave your money in the fixed account option; and

N is the number of full months remaining in the term you initially
agreed to leave your money in the fixed account option.

EXAMPLES OF THE MVA

The examples below assume the following:

(1) You made an initial Purchase Payment of $10,000 and allocated it to the
10-year fixed account option at a rate of 5%;

(2) You make a partial withdrawal of $4,000 when 1 1/2 years (18 months)
remain in the 10-year term you initially agreed to leave your money in
the fixed account option (N=18); and

(3) You have not made any other transfers, additional Purchase Payments, or
withdrawals.

No withdrawal charges are reflected because your Purchase Payment has been in
the contract for seven full years. If a withdrawal charge applies, it is
deducted before the MVA. The MVA is assessed on the amount withdrawn less any
withdrawal charges.

POSITIVE ADJUSTMENT

Assume that on the date of withdrawal, the interest rate in effect for a new
Purchase Payments in the 1-year fixed account option is 3.5% and the 3-year
fixed account option is 4.5%. By linear interpolation, the interest rate for the
remaining 2 years (1 1/2 years rounded up to the next full year) in the contract
is calculated to be 4%.

N/12
The MVA factor is = [(1+I/(1+J+0.005)] - 1
18/12
= [(1.05)/(1.04+0.005)] - 1
1.5
= (1.004785) - 1
= 1.007186 - 1
= + 0.007186

The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:
$4,000 x (+0.007186) = +$28.74

$28.74 represents the MVA that would be added to your withdrawal.

NEGATIVE ADJUSTMENT

Assume that on the date of withdrawal, the interest rate in effect for new
Purchase Payments in the 1-year fixed account option is 5.5% and the 3-year
fixed account option is 6.5%. By linear interpolation, the interest rate for the
remaining 2 years (1 1/2 years rounded up to the next full year) in the contract
is calculated to be 6%.

N/12
The MVA factor is = [(1+I)/(1+J+0.005)] - 1
18/12
= [(1.05)/(1.06+0.005)] - 1
1.5
= (0.985915) - 1
= 0.978948 - 1
= - 0.021052

The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:
$4,000 X (- 0.021052) = -$84.21

$84.21 represents the MVA that will be deducted from the money remaining in the
10-year fixed account option.

B-1
<PAGE> 28

- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
APPENDIX C - PREMIUM TAXES
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

Premium taxes vary according to the state and are subject to change without
notice. In many states, there is no tax at all. Listed below are the current
premium tax rates in those states that assess a premium tax. For current
information, you should consult your tax adviser.

<TABLE>
<CAPTION>
QUALIFIED NON-QUALIFIED
STATE CONTRACT CONTRACT
<S> <C> <C>
========================================================================================
California .50% 2.35%
- ----------------------------------------------------------------------------------------
District of Columbia 2.25% 2.25%
- ----------------------------------------------------------------------------------------
Kentucky 2% 2%
- ----------------------------------------------------------------------------------------
Maine 0% 2%
- ----------------------------------------------------------------------------------------
Nevada 0% 3.5%
- ----------------------------------------------------------------------------------------
South Dakota 0% 1.25%
- ----------------------------------------------------------------------------------------
West Virginia 1% 1%
- ----------------------------------------------------------------------------------------
Wyoming 0% 1%
- ----------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------
</TABLE>

C-1
<PAGE> 29

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

Please forward a copy (without charge) of the Polaris Variable Annuity
Statement of Additional Information to:

(Please print or type and fill in all information.)

------------------------------------------------------------------------
Name

------------------------------------------------------------------------
Address

------------------------------------------------------------------------
City/State/Zip

Date: Signed:
---------------------- -------------------------------

Return to: Anchor National Life Insurance Company, Annuity Service Center,
P.O. Box 52499, Los Angeles, California 90054-0299
- --------------------------------------------------------------------------------
<PAGE> 30
PART II
-------

Information Not Required in Prospectus

Item 14. Other Expenses of Issuance and Distribution.

The following table sets forth the expenses in connection with the issuance
and distribution of the securities being registered, other than underwriting
discounts and commissions. All of the amounts shown are estimates, except the
SEC registration fee.

<TABLE>
<S> <C>
SEC registration fee ................................. $137,932
Printing and engraving ............................... 25,000
Legal fees and expenses .............................. 10,000
Rating agency fees ................................... 7,500
Miscellaneous ........................................ 10,000
--------
Total ............................................ $190,432
========
</TABLE>

Item 15. Indemnification of Directors and Officers.

Section 10-851 of the Arizona Corporations and Associations law permits the
indemnification of directors, officers, employees and agents of Arizona
corporations. Article Eight of the Company's Restated Articles of Incorporation,
as amended and restated (the "Articles") and Article Five of the Company's
By-Laws ("By-Laws") authorize the indemnification of directors and officers to
the full extent required or permitted by the Laws of the State of Arizona, now
or hereafter in force, whether such persons are serving the Company, or, at its
request, any other entity, which indemnification shall include the advance of
expenses under the procedures and to the full extent permitted by law. In
addition, the Company's officers and directors are covered by certain directors'
and officers' liability insurance policies maintained by the Company's parent.
Reference is made to section 10-851 of the Arizona Corporations and Associations
Law, Article Eight of the Articles, and Article Five of the By-Laws, which are
incorporated herein by reference.

Item 16. Exhibits and Financial Statement Schedules.

<TABLE>
<CAPTION>
Exhibit No. Description
----------- -----------
<S> <C>
(1) Form of Underwriting Agreement***
(2) Plan of Acquisition, Reorganization,
Arrangement, Liquidation or Succession**
(3) (a) Articles of Incorporation***
(b) By-Laws***
(4) (a) Polaris Fixed and Variable Annuity
Contract****
(b) Polaris Participant Enrollment Form****
(5) Opinion of Counsel re: Legality***
(6) Opinion re Discount on Capital Shares**
(7) Opinion re Liquidation Preference**
(8) Opinion re Tax Matters**
(9) Voting Trust Agreement**
(10) Material Contracts**
(11) Statement re Computation of Per Share
Earnings**
(12) Statement re Computation of Ratios**
(14) Material Foreign Patents**
(15) Letter re Unaudited Financial Information**
(16) Letter re Change in Certifying Accountant**
(23) (a) Consent of Independent Accountants*
(b) Consent of Attorney**
(24) Powers of Attorney**
(25) Statement of Eligibility of Trustee**
(26) Invitation for Competitive Bids**
(27) Financial Data Schedule*****
(28) Information Reports Furnished to State
Insurance Regulatory Authority**
(29) Other Exhibits**
</TABLE>

* Herewith
** Not Applicable
*** Filed January 20, 1998,
Post-Effective Amendment 7
to this Registration Statement
**** Filed March 20, 1998,
Post-Effective Amendment 8
to this Registration Statement
***** Filed February 2, 1999,
Post-Effective Amendment 11
to this Registration Statement
<PAGE> 31

Item 17. Undertakings.

The undersigned registrant hereby undertakes:

(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement:

(i) To include any prospectus required by Section 10(a)(3)
of the Securities Act of 1933;

(ii) To reflect in the prospectus any facts or events arising
after the effective date of the registration statement
(or the most recent post-effective amendment thereof)
which, individually or in the aggregate, represents a
fundamental change in the information set forth in the
registration statement;

(iii) To include any material information with respect to the
plan of distribution not previously disclosed in the
registration statement or any material change to such
information in the registration statement;

(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall
be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.

(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain
unsold at the termination of the offering.

(4) That, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant's annual
report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 and, where applicable, each
filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.

<PAGE> 32
SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets
all of the requirements for filing on Form S-3 and has duly caused this
registration statement to be signed on its behalf by the undersigned, thereunto
duly authorized, in the City of Los Angeles, State of California on this 17th
day of April, 2000.

By: ANCHOR NATIONAL LIFE INSURANCE COMPANY

By: /s/ JAY S. WINTROB
---------------------------------------
Jay S. Wintrob
Executive Vice President

Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.

<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
--------- ----- ----
<S> <C> <C>

ELI BROAD* President, Chief Executive
- ---------------- Officer, & Chairman of
Eli Broad Board
(Principal Executive Officer)

GREGORY M. OUTCALT* Senior Vice President &
- ---------------------- Controller
Gregory M. Outcalt

N. SCOTT GILLIS* Senior Vice President &
- ---------------- Director
N. Scott Gillis

JAMES R. BELARDI* Senior Vice President &
- ---------------- Director
James R. Belardi

JANA W. GREER* Senior Vice President &
- ---------------- Director
Jana W. Greer

JAY S. WINTROB* Executive Vice President &
- ---------------- Director
Jay S. Wintrob

/s/ SUSAN L. HARRIS Senior Vice President & April 17, 2000
- ------------------- Director
Susan L. Harris

MARK H. GAMSIN* Senior Vice President &
- ------------------ Director
Marc H. Gamsin

*By: /s/ SUSAN L. HARRIS Attorney-in-Fact
-----------------------
Susan L. Harris
</TABLE>

Date: April 17, 2000

<PAGE> 33
EXHIBIT INDEX

<TABLE>
<CAPTION>
Number Description
- ------ -----------
<S> <C>
Exhibit 23(a) Consent of Independent Accountants

</TABLE>

<PAGE> 1
EXHIBIT 23.(a)

CONSENT OF INDEPENDENT ACCOUNTANTS

We hereby consent to the incorporation by reference in the Prospectus
constituting part of this Registration Statement on Form S-3 of our report dated
January 31, 2000 appearing on page F-2 of Anchor National Life Insurance
Company's Annual Report on Form 10-K for the year ended December 31, 1999. We
also consent to the reference to us under the heading "Independent Accountants"
in such Prospectus.

PricewaterhouseCoopers LLP
Los Angeles, California
April 17, 2000