RELIASTAR BANKERS SECURITY LIFE INSURANCE CO, 485BPOS, 2000-04-14

RELIASTAR BANKERS SECURITY LIFE INSURANCE CO
485BPOS, 2000-04-14

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<PAGE> 1

AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON APRIL 14, 2000

REGISTRATION NO. 333-47527
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

POST-EFFECTIVE AMENDMENT NO. 2

FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
------------------------

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
(Exact Name of Registrant)

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
1000 WOODBURY ROAD
WOODBURY, NEW YORK 11797
(Name and Address of Principal Executive Office of Depositor)

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

STEWART D. GREGG
COUNSEL
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
20 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MN 55440
------------------------

Copy to:

JEFFREY A. PROULX

ASSOCIATE COUNSEL
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
20 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MN 55440
------------------------

It is proposed that this filing will become effective
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485

[X] on May 1, 2000 pursuant to paragraph (b) of Rule 485

[ ] 60 days after filing pursuant to paragraph (a) of Rule 485
[ ] on , 1999 pursuant to paragraph (a) of Rule 485
------------------------

TITLE OF SECURITIES BEING REGISTERED:
VARIABLE LIFE CONTRACTS ISSUED BY A REGISTERED SEPARATE ACCOUNT.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE> 2

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I

CROSS REFERENCE SHEET
(RECONCILIATION AND TIE SHEET)

<TABLE>
<CAPTION>
ITEM NUMBER OF
FORM N-8B-2 HEADING IN THE PROSPECTUS
- -------------- -------------------------
<C> <S>
1 Cover Page
2 Cover Page
3 Not Applicable
4 Distribution of the Policies
5 ReliaStar Life Insurance Company of New York; The Variable
Account
6 The Variable Account
7 Not Applicable
8 Not Applicable
9 Not Applicable
10 Summary; Death Benefit; Payment and Allocation of Premiums;
Death Benefit Guarantee; Accumulation Value; Policy Lapse
and Reinstatement; Surrender Benefits; Additional
Information on the Investments of the Variable Account;
Transfers; Policy Loans; Free Look and Conversion Rights;
Voting Rights; General Provisions; Appendix A; Appendix B
11 Deductions and Charges; Additional Information on the
Investments of the Variable Account
12 Additional Information on the Investments of the Variable
Account
13 Deductions and Charges
14 The Policies; General Provisions; Distribution of the
Policies
15 Payment and Allocation of Premiums; Additional Information
on the Investments of the Variable Account
16 Payment and Allocation of Premiums; Surrender Benefits;
Additional Information on the Investments of the Variable
Account
17 Surrender Benefits; Policy Loans; Free Look and Conversion
Rights; General Provisions
18 The Variable Account; Additional Information on the
Investments of the Variable Account; Payment and Allocation
of Premiums
19 Voting Rights; General Provisions
20 Not Applicable
21 Policy Loans
22 Not Applicable
23 Bonding Arrangements
24 Definitions; General Provisions
25 ReliaStar Life Insurance Company of New York
26 Not Applicable
27 ReliaStar Life Insurance Company of New York
28 Management
29 ReliaStar Life Insurance Company of New York
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Not Applicable
36 Not Applicable
37 Not Applicable
38 Distribution of the Policies
39 Distribution of the Policies
40 Distribution of the Policies
</TABLE>
<PAGE> 3

<TABLE>
<CAPTION>
ITEM NUMBER OF
FORM N-8B-2 HEADING IN THE PROSPECTUS
- -------------- -------------------------
<C> <S>
41 Distribution of the Policies
42 Management
43 Not Applicable
44 Additional Information on the Investments of the Variable
Account; Payment and Allocation of Premiums; Deductions and
Charges
45 Not Applicable
46 Additional Information on the Investments of the Variable
Account; Deductions and Charges
47 Additional Information on the Investments of the Variable
Account
48 ReliaStar Life Insurance Company of New York; State
Regulation
49 Not Applicable
50 The Variable Account
51 Cover Page; The Policies; Death Benefit; Payment and
Allocation of Premiums; Deductions and Charges; Policy Lapse
and Reinstatement; General Provisions; Free Look and
Conversion Rights
52 Additional Information on the Investments of the Variable
Account
53 Federal Tax Matters
54 Not Applicable
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements
</TABLE>
<PAGE> 4

[RELIASTAR LOGO]

ReliaStar Life Insurance Company of New York
1000 Woodbury Road
Woodbury, New York 11797
-------------------------------------

VARIABLE ESTATE DESIGN POLICIES

ISSUED BY
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
OF
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

ReliaStar Life Insurance Company of New York is offering the survivorship
flexible premium variable life insurance policy described in this prospectus.
ReliaStar designed the Policy to provide (1) a death benefit payable when the
surviving joint insured person dies; and (2) maximum flexibility regarding
premium payments and death benefits. Subject to certain restrictions, Policy
owners may:

- vary the frequency and amount of premium payments;

- increase or decrease the level of death benefits payable under the
Policy; and

- allocate premiums to:

-- the Fixed Account, an account that provides a minimum specified
rate of interest; and

-- Sub-Accounts of ReliaStar Life Insurance Company of New York
Variable Life Separate Account I, a variable account allowing you
to invest in certain portfolios of the following Funds:

AIM Variable Insurance Funds

The Alger American Fund
Fidelity Variable Insurance Products Fund
Fidelity Variable Insurance Products Fund II
Janus Aspen Series
Neuberger Berman Advisers Management Trust

OCC Accumulation Trust

Pilgrim Variable Products Trust

Putnam Variable Trust

If you allocate net premiums to Sub-Accounts of ReliaStar Life Insurance
Company of New York Variable Life Separate Account I, the amount of the Policy's
death benefit may, and the total value attributed to a Policy will, vary to
reflect the investment performance of the Sub-Accounts you select.

The Policy's primary purpose is to provide insurance protection for the
beneficiary. ReliaStar does not claim that investing in the Policy is in any way
similar or comparable to a systematic investment plan of a mutual fund.

Generally, the Policy will remain in force as long as the cash surrender
value (that is, the amount that ReliaStar would pay if you surrender the Policy)
is sufficient to pay certain monthly charges. However, under certain
circumstances the Policy provides a death benefit guarantee that allows the
Policy to remain in force without regard to the cash surrender value. See "Death
Benefit Guarantee."

Interests in the Policies and shares of the Funds are not deposits or
obligations of or guaranteed by a bank, and are not Federally insured by the
Federal Deposit Insurance Corporation or any other governmental agency.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED THESE SECURITIES OR
DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE.
CALL 1-800-456-6965 TO OBTAIN A CURRENT PROSPECTUS FOR ANY OF THE FUNDS. A
CURRENT PROSPECTUS FOR EACH OF THE FUNDS MUST ACCOMPANY THIS PROSPECTUS AND
SHOULD BE READ IN CONJUNCTION WITH THIS PROSPECTUS.

THE DATE OF THIS PROSPECTUS IS MAY 1, 2000.

<PAGE> 5

TABLE OF CONTENTS

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
DEFINITIONS................................................. 5
PART 1. SUMMARY
The Policy.................................................. 7
Free Look Rights............................................ 8
Premium Payments............................................ 8
The Variable Account........................................ 8
The Fixed Account........................................... 8
The Funds................................................... 8
Charges Against the Accumulation Value...................... 11
Charge Upon Lapse or Total Surrender of the Policy.......... 11
Surrenders.................................................. 11
Partial Withdrawals......................................... 11
Loans....................................................... 12
Transfers................................................... 12
Death Benefit Overview...................................... 12
Adjusting the Death Benefit................................. 12
Death Benefit Guarantee..................................... 13
Lapse....................................................... 13
Taxation of Death Benefit Proceeds.......................... 13
Taxation of the Policy...................................... 13
PART 2. DETAILED INFORMATION
ReliaStar Life Insurance Company of New York................ 13
The Policies................................................ 14
Deductions and Charges...................................... 14
Premium Expense Charge.................................... 14
Monthly Deduction......................................... 14
Cost of Insurance...................................... 14
Monthly Administrative Charge.......................... 15
Monthly Amount Charge.................................. 15
Monthly Mortality and Expense Risk Charge.............. 15
Optional Insurance Benefit Charges..................... 15
Surrender Charge.......................................... 15
Partial Withdrawal and Transfer Charges................... 16
Modification of Charges................................... 16
Investment Advisory Fees and Other Fund Expenses.......... 17
Fund Expenses............................................. 17
The Variable Account........................................ 19
Investments of the Variable Account....................... 19
Performance Information................................... 19
Death Benefit............................................... 20
Death Benefit Options..................................... 20
Level Amount Option.................................... 20
Variable Amount Option................................. 21
Which Death Benefit Option to Choose................... 22
Requested Changes in Face Amount............................ 22
Increases................................................. 22
Decreases................................................. 22
Effect of Requested Changes in Face Amount................ 23
Insurance Protection........................................ 23
</TABLE>

2
<PAGE> 6

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Changing the Death Benefit Option........................... 24
Payment and Allocation of Premiums.......................... 24
Issuing the Policy........................................ 24
Coverage............................................... 25
Minimum Initial Premium................................ 25
Temporary Insurance.................................... 25
Allocating Premiums....................................... 25
Crediting New Premiums................................. 25
Refunding Premiums..................................... 26
Amount and Timing of Premiums............................. 26
Planned Periodic Premiums................................. 26
Unscheduled Additional Premiums........................... 27
Paying Premiums by Mail................................... 27
Death Benefit Guarantee..................................... 27
Requirements for the Death Benefit Guarantee.............. 28
Accumulation Value.......................................... 28
Illustration of Policy Benefits............................. 29
Specialized Uses of the Policy.............................. 29
Policy Lapse and Reinstatement.............................. 30
Lapse..................................................... 30
Reinstatement............................................. 30
Surrender Benefits.......................................... 30
Total Surrender........................................... 30
Partial Withdrawal........................................ 31
Effect of Partial Withdrawal(s)........................... 31
Transfers................................................... 31
Telephone/Fax Instructions................................ 32
Dollar Cost Averaging Service............................. 32
Portfolio Rebalancing Service............................. 33
Transfer Limits........................................... 33
Transfer Charges.......................................... 33
Policy Loans................................................ 34
General................................................... 34
Immediate Effect of Policy Loans.......................... 34
Effect on Investment Performance.......................... 34
Effect on Policy Coverage................................. 35
Interest.................................................. 35
Repayment of Loan Amount.................................. 35
Tax Considerations........................................ 35
Free Look and Conversion Rights............................. 35
Free Look Rights.......................................... 35
Conversion Rights......................................... 36
General Option......................................... 36
Additional Information on the Investments of the Variable
Account................................................ 36
Investment Limits...................................... 36
Addition, Deletion, or Substitution of Investments..... 36
Voting Rights............................................... 37
Disregarding Voting Instructions.......................... 38
General Provisions.......................................... 38
Ownership................................................. 38
Proceeds.................................................. 38
</TABLE>

3
<PAGE> 7

<TABLE>
<CAPTION>
PAGE
----
<S> <C>
Beneficiary............................................... 39
Postponement of Payments.................................. 39
Settlement Options........................................ 39
Interest on Settlement Options......................... 40
Incontestability.......................................... 40
Misstatement of Age and Sex............................... 40
Suicide................................................... 40
Termination............................................... 40
Amendment................................................. 41
Reports................................................... 41
Annual Statement....................................... 41
Projection Report...................................... 41
Other Reports.......................................... 41
Dividends................................................. 41
Collateral Assignment..................................... 41
Optional Insurance Benefits............................... 41
Policy Split Option Rider (PSO)........................ 41
Survivorship Term Rider (STR).......................... 42
Four Year Term Rider (FTR)............................. 42
Federal Tax Matters......................................... 42
Introduction.............................................. 42
Tax Status of the Policy.................................. 42
Tax Treatment of Policy Benefits.......................... 43
In General........................................... 43
Modified Endowment Contracts......................... 43
Distributions from Modified Endowment Contracts...... 43
Distributions for Policies That Are Not Modified
Endowment Contracts................................. 43
Policy Loans......................................... 44
Multiple Policies.................................... 44
Taxation of ReliaStar Life Insurance Company of New
York.................................................. 44
Possible Changes in Taxation........................... 44
Other Considerations................................... 44
Distribution of the Policies................................ 44
Management.................................................. 45
Directors and Officers.................................... 45
State Regulation............................................ 48
Legal Proceedings........................................... 48
Bonding Arrangements........................................ 49
Legal Matters............................................... 49
Experts..................................................... 49
Registration Statement Contains Further Information......... 49
Financial Statements........................................ 50
Appendices.................................................. A-1
</TABLE>

THE POLICY MAY NOT BE AVAILABLE IN ALL JURISDICTIONS. THIS PROSPECTUS
CONSTITUTES AN OFFERING OR SOLICITATION ONLY IN THOSE JURISDICTIONS WHERE SUCH
OFFERING OR SOLICITATION MAY LAWFULLY BE MADE.

RELIASTAR HAS NOT AUTHORIZED ANY PERSON TO GIVE ANY INFORMATION OR TO MAKE ANY
REPRESENTATIONS REGARDING THE POLICY OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS OR THE ACCOMPANYING FUND PROSPECTUSES. DO NOT RELY ON ANY SUCH
INFORMATION OR REPRESENTATIONS.

4
<PAGE> 8

DEFINITIONS

ACCUMULATION VALUE. The total value attributable to a specific Policy, which
equals the sum of the Variable Accumulation Value (the total of the values
in each Sub-Account of the Variable Account) and the Fixed Accumulation
Value (the value in the Fixed Account). See "Accumulation Value" at page 28
and Appendix B.

AVERAGE AGE. The sum of the ages of the Joint Insureds divided by two rounded to
the higher age.

CASH SURRENDER VALUE. The Accumulation Value less any Surrender Charge, Loan
Amount and unpaid Monthly Deductions.

CASH VALUE. The Accumulation Value less any Surrender Charge.

CODE. Internal Revenue Code of 1986, as amended.

DEATH BENEFIT. The amount determined under the applicable Death Benefit Option.
We will reduce the proceeds payable to the beneficiary upon the death of
the Surviving Joint Insured by any Loan Amount and any unpaid Monthly
Deductions. See "Death Benefit" at page 20.

DEATH BENEFIT GUARANTEE. A feature of the Policy guaranteeing that the Policy
will not lapse during the Death Benefit Guarantee Period specified in your
Policy if, on each Monthly Anniversary, the total premiums paid on the
Policy, less any partial withdrawals and any Loan Amount, equals or exceeds
the total required Minimum Monthly Premium payments specified in your
Policy. See "Death Benefit Guarantee" at page 27.

DEATH BENEFIT OPTION. Either of two death benefit options available under the
Policy (the Level Amount Option and the Variable Amount Option). See "Death
Benefit -- Death Benefit Options" at page 20.

FACE AMOUNT. The minimum Death Benefit under the Policy to age 100 of the
younger Joint Insured as long as the Policy remains in force. See "Death
Benefit" at page 20.

FIXED ACCOUNT. ReliaStar Life Insurance Company of New York's assets other than
those allocated to the Variable Account or any other separate account. See
Appendix A.

FIXED ACCUMULATION VALUE. The value attributable to a specific Policy based upon
amounts in the Fixed Account. Unlike the Variable Accumulation Value, the
Fixed Accumulation Value will not reflect the investment performance of the
Funds. See "Accumulation Value" at page 28 and Appendix B.

FUNDS. Any open-end management investment company (or portfolio thereof) or unit
investment trust (or series thereof) in which a Sub-Account invests. See
"Investments of the Variable Account" at page 19.

ISSUE DATE. The date insurance coverage under a Policy begins.

JOINT INSUREDS. The persons upon whose lives we issue this Policy.

LOAN AMOUNT. The sum of all unpaid Policy loans including unpaid interest due
thereon. See "Policy Loans" at page 34.

MINIMUM MONTHLY PREMIUM. A monthly premium amount that we determine when we
issue the Policy. See "Death Benefit Guarantee" at page 27.

MONTHLY ANNIVERSARY. The same date in each succeeding month as the Policy Date.
If the Monthly Anniversary falls on a date other than a Valuation Date,
then the Monthly Anniversary will be the next Valuation Date. The first
Monthly Anniversary is on the Policy Date.

MONTHLY DEDUCTION. A monthly charge that we deduct from the Accumulation Value
of the Policy. See "Deductions and Charges -- Monthly Deduction" at page
14.

NET PREMIUM. The gross premium you pay less a Premium Expense Charge.

PLANNED PERIODIC PREMIUM. The scheduled premium selected by you of a level
amount at a fixed interval. The Policy will show the initial Planned
Periodic Premium you select. See "Payment and Allocation of
Premiums -- Planned Periodic Premiums" at page 26.

POLICY. The survivorship flexible premium variable life insurance policy
described in this Prospectus.

5
<PAGE> 9

POLICY ANNIVERSARY. The same date in each succeeding year as the Policy Date. If
the Policy Anniversary falls on a date other than a Valuation Date, the
Policy Anniversary will be considered to be the next Valuation Date.

POLICY DATE. The date shown on your Policy that ReliaStar uses to determine
Policy Years, Policy Months, Monthly Anniversaries and Policy
Anniversaries.

POLICY MONTH. A one-month period beginning on a Monthly Anniversary.

POLICY YEAR. A 12-month period beginning on a Policy Anniversary.

PREMIUM EXPENSE CHARGE. An amount (6.25% in Policy Years 1-10 and 3.75%
thereafter) ReliaStar deducts from each premium payment. See "Deductions
and Charges -- Premium Expense Charge" at page 14.

RATE CLASS. A group of Insureds we determine based on our expectation that they
will have similar mortality experience.

SEC. Securities and Exchange Commission.

SIGNATURE GUARANTEE. A guarantee of your signature by a member firm of the New
York, American, Boston, Midwest, Philadelphia, or Pacific Stock Exchange,
or by a commercial bank (not a savings bank) which is a member of the
Federal Deposit Insurance Corporation, or, in certain cases, by a member
firm of the National Association of Securities Dealers, Inc. that has
entered into an appropriate agreement with us.

SUB-ACCOUNT. A sub-division of the Variable Account that invests exclusively in
the shares of a specified Fund.

SURRENDER CHARGE. A charge imposed upon total surrender or lapse of the Policy
during the first 15 Policy Years and the first 15 years following any
requested increase in Face Amount. See "Deductions and Charges -- Surrender
Charge" at page 15.

SURVIVING JOINT INSURED. The Joint Insured who remains alive after the other
Joint Insured has died.

UNIT VALUE. The unit measure by which we determine the value of the Policy's
interest in each Sub-Account. See Appendix B.

VALUATION DATE. Each day the New York Stock Exchange is open for business except
for days that a Sub-Account's corresponding Fund does not value its shares.
The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day; Rev. Dr. Martin Luther King, Jr. Day;
Presidents' Day; Good Friday; Memorial Day; July Fourth; Labor Day;
Thanksgiving Day; and Christmas Day.

VALUATION PERIOD. The period beginning at the close of business on a Valuation
Date and ending at the close of business on the next Valuation Date. See
Appendix B.

VARIABLE ACCOUNT. ReliaStar Life Insurance Company of New York Variable Life
Separate Account I, a separate investment account we established to receive
and invest Net Premiums paid under the Policy and other variable life
insurance policies we issue. See "The Variable Account" at page 19.

VARIABLE ACCUMULATION VALUE. The value attributable to a specific Policy based
upon amounts in the Variable Account. See "Accumulation Value" and Appendix
B.

WE, US, OUR, THE COMPANY, OR RELIASTAR. ReliaStar Life Insurance Company of New
York.

YOU, YOUR. The Policy owner(s) as designated in the application for the Policy
or as subsequently changed. If a Policy has been absolutely assigned, the
assignee is the Policy Owner. A collateral assignee is not the Policy
owner.

6
<PAGE> 10

PART 1. SUMMARY

This is a brief summary of the Policy's features. Please read the entire
Prospectus and the Policy for more detailed information.

THE POLICY

The Policy is a survivorship flexible premium variable life insurance
contract with death benefits, cash values, and other features of traditional
life insurance contracts. The Policy is:

- "survivorship" because it pays a death benefit when the Surviving Joint
Insured dies;

- "flexible premium" because you do not have to pay premiums according to
a fixed schedule; and

- "variable" because Accumulation Values and, under certain circumstances,
the Death Benefit will increase and decrease based on the investment
performance of the Funds corresponding to the Sub-Accounts to which you
allocate your premium payments.

Under current Federal tax law, as long as the Policy qualifies as life
insurance, Accumulation Value increases will be subject to the same Federal
income tax treatment as traditional life insurance cash values. Therefore, any
increases should accumulate on a tax deferred basis until you request a
distribution. See "Federal Tax Matters -- Tax Status of the Policy." The
following chart outlines the various features, charges and expenses of the
Policies. Additional, detailed information pertaining to charges and expenses is
contained in this Summary and in "Deductions and Charges."

[Flow Chart]

7
<PAGE> 11

FREE LOOK RIGHTS

- - If you return the Policy to us by midnight of the 10th day after you receive
it, we will send you a refund of all premiums paid, unless otherwise
stipulated by state law (see "Free Look and Conversion Rights.")

PREMIUM PAYMENTS

- - You choose when to pay and how much to pay.

- - We may refuse to accept any premium less than $25.

- - You cannot pay additional premiums after age 100.

- - We may refuse any premium that would disqualify your Policy as life insurance
under Section 7702 of the Code.

- - You may pay enough premiums to maintain the Death Benefit Guarantee to keep
the Policy in force during at least the first several Policy Years. See
"Death Benefit Guarantee" and "Payment and Allocation of Premiums -- Amount
and Timing of Premiums."

- - We deduct a Premium Expense Charge (6.25% of each premium payment in Policy
Years 1-10 and 3.75% of each premium payment after the tenth Policy Year) and
credit the remaining premium (the Net Premium) to the Variable Account or the
Fixed Account according to your instructions. See "Deductions and
Charges -- Premium Expense Charge."

THE VARIABLE ACCOUNT (ReliaStar Life Insurance Company of New York Variable Life
Separate Account I)

- - ReliaStar Life Insurance Company of New York Variable Life Separate Account I
is one of our separate accounts and consists of several Sub-Accounts. We only
invest premiums from our variable life insurance policies in the Variable
Account.

- - We invest any Net Premiums you allocate to each Sub-Account in shares of the
Fund related to that Sub-Account.

- - Variable Accumulation Value will vary with the investment performance of the
Funds and the charges deducted from the Variable Accumulation Value. See
"Accumulation Value."

THE FIXED ACCOUNT

- - Consists of all of our assets other than those in our separate accounts
(including the Variable Account).

- - We credit interest of at least 4% per year on any amounts you allocate to the
Fixed Account.

- - We may, in our sole discretion, credit interest in excess of 4%. See Appendix
A, "The Fixed Account."

THE FUNDS

- - You can instruct ReliaStar to place your Net Premium in or transfer among the
34 investment portfolios over the lifetime of your Policy.

8
<PAGE> 12

The following chart lists the currently available Funds and outlines
certain of their important characteristics.

INVESTMENT FUNDS

<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
GROWTH
ADVISER/ MONEY FIXED &
FUND GROUP FUND SUBADVISER MARKET INCOME INCOME INTERNATIONAL
<C> <C> <C> <S> <C> <C> <C>

- ----------------------------------------------------------------------------------------------------------------------
AIM AIM V.I. Dent AIM
Variable Demographic Advisors, Inc./
Insurance Trends Fund H.S. Dent Advisors,
Funds Inc.
Houston, TX
- ----------------------------------------------------------------------------------------------------------------------
Alger American Alger American Growth Fred Alger
New York, N.Y. Portfolio Management, Inc.
---------------------------------------------------------------------------------------------------
Alger American Fred Alger
Leveraged All Cap Management, Inc.
Portfolio
---------------------------------------------------------------------------------------------------
Alger American MidCap Fred Alger
Growth Portfolio Management, Inc.
---------------------------------------------------------------------------------------------------
Alger American Small Fred Alger
Capitalization Management, Inc.
Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Fidelity VIP Fidelity Management
Investments(R) Equity-Income & Research Company
Boston, Mass. Portfolio -- Initial X
Class
---------------------------------------------------------------------------------------------------
VIP Fidelity Management
Growth Portfolio & Research Company
-- Initial Class
---------------------------------------------------------------------------------------------------
X
VIP Fidelity Management
High Income Portfolio & Research Company
-- Initial Class
---------------------------------------------------------------------------------------------------
X
VIP Fidelity Management
Money Market & Research Company
Portfolio -- Initial
Class
---------------------------------------------------------------------------------------------------
VIP II Contrafund(R) Fidelity Management
Portfolio -- Initial & Research Company
Class
---------------------------------------------------------------------------------------------------
X
VIP II Fidelity Management
Index 500 Portfolio & Research Company
-- Initial Class
---------------------------------------------------------------------------------------------------
Fidelity VIP II Fidelity Management
Investments(R) Investment Grade Bond & Research Company
is a Portfolio
registered -- Initial Class
trademark of
FMR Corp. X
- ----------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Janus Capital
Denver, Colo. Aggressive Corporation
Growth Portfolio
---------------------------------------------------------------------------------------------------
Aspen Series Growth Janus Capital
Portfolio Corporation
---------------------------------------------------------------------------------------------------
X
Aspen Series Janus Capital
International Growth
Portfolio
---------------------------------------------------------------------------------------------------
X
Aspen Series Worldwide Janus Capital
Growth Portfolio Corporation
- ----------------------------------------------------------------------------------------------------------------------

<CAPTION>
- -------------- -----------------------------------------------------------------------------------

AGGRESSIVE PRIMARY
FUND GROUP BALANCED GROWTH GROWTH OBJECTIVE(S) INVESTMENTS
<C> <C> <C> <C> <C> <C> <C>
- -------------- -----------------------------------------------------------------------------------
AIM Long-term growth Securities of
Variable of capital companies that are
Insurance likely to benefit
Funds from changing
Houston, TX X demographic,
economic and
lifestyle trends
- -------------- -----------------------------------------------------------------------------------
Alger American Long-term capital Equity securities
New York, N.Y. X appreciation of large companies
-----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
X
Long-term capital Equity securities
appreciation of companies of any
size
-----------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
X
Long-term capital Equity securities
appreciation within the range of
S&P MidCap 400
Index
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Equity securities
appreciation within the range of
Russell 2000 Growth
or S&P SmallCap 600
Indexes
- -------------- -----------------------------------------------------------------------------------
Fidelity Reasonable Income-producing
Investments(R) income; also equity securities
Boston, Mass. considers and debt
potential for obligations
capital
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Common stocks
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
High current Income-producing
income debt securities,
preferred stocks
and convertible
securities, with an
emphasis on lower-
quality debt
securities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
High current U.S. dollar-
income consistent denominated money
with preservation market securities
of capital and
liquidity
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Securities of
appreciation companies whose
value the adviser
believes is not
fully recognized by
the public
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Total return that Common stocks of
corresponds to S&P 500
that of S&P 500
Index
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Fidelity High current Investment-grade
Investments(R) income consistent intermediate fixed
is a with preservation income securities
registered of capital
trademark of
FMR Corp.
- -------------- -----------------------------------------------------------------------------------
Janus Long-term growth Nondiversified
Denver, Colo. X of capital portfolio of common
stocks
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Diversified common
growth stocks
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term capital Foreign and
growth domestic common
stocks
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term capital Foreign and
growth domestic common
stocks
- -------------- -----------------------------------------------------------------------------------
</TABLE>

9
<PAGE> 13

INVESTMENT FUNDS, CONTINUED

- ----------------------------------------------------------------------------------------------------------------------
Neuberger Advisers Management Neuberger Berman
Berman Trust Limited Maturity Management Inc./
New York, N.Y. Bond Portfolio Neuberger Berman, X
LLC
---------------------------------------------------------------------------------------------------
Advisers Management Neuberger Berman
Trust Partners Management Inc./
Portfolio Neuberger Berman
LLC
---------------------------------------------------------------------------------------------------
Advisers Management Neuberger Berman
Trust Socially Management Inc./
Responsive Portfolio Neuberger Berman,
LLC
- ----------------------------------------------------------------------------------------------------------------------
OCC OCC Accumulation Trust OpCap Advisors
New York, N.Y. Equity Portfolio
---------------------------------------------------------------------------------------------------
X
OCC Accumulation Trust OpCap Advisors
Global Equity
Portfolio
---------------------------------------------------------------------------------------------------
OCC Accumulation Trust OpCap Advisors
Managed Portfolio
---------------------------------------------------------------------------------------------------
OCC Accumulation Trust OpCap Advisors
Small Cap Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Pilgrim Pilgrim VP Growth Pilgrim
Phoenix, Ariz. Opportunities Investments, Inc.
Portfolio
---------------------------------------------------------------------------------------------------
Pilgrim VP Growth + Pilgrim
Value Portfolio Investments,
Inc./Navellier Fund
Management, Inc.
---------------------------------------------------------------------------------------------------
X
Pilgrim VP High Yield Pilgrim
Portfolio Investments, Inc.
---------------------------------------------------------------------------------------------------
X
Pilgrim VP Pilgrim
International Value Investments,
Portfolio Inc./Brandes
Investment
Partners, L.P.
---------------------------------------------------------------------------------------------------
X
Pilgrim VP MagnaCap Pilgrim
Portfolio Investments, Inc.
---------------------------------------------------------------------------------------------------
Pilgrim VP MidCap Pilgrim
Opportunities Investments, Inc.
Portfolio
---------------------------------------------------------------------------------------------------
Pilgrim VP Research Pilgrim
Enhanced Index Investments,
Portfolio Inc./J.P. Morgan
Investment
Management Inc.
---------------------------------------------------------------------------------------------------
Pilgrim VP SmallCap Pilgrim
Opportunities Investments, Inc.
Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Putnam Putnam VT Growth and Putnam Investment
Investments, Income Fund -- Class Management, Inc.
Inc. IA Shares
Boston, Mass. X
---------------------------------------------------------------------------------------------------
Putnam VT New Putnam Investment
Opportunities Fund -- Management, Inc.
Class IA Shares
---------------------------------------------------------------------------------------------------
Putnam VT Voyager Putnam Investment
Fund -- Class IA Management, Inc.
Shares
- ----------------------------------------------------------------------------------------------------------------------

<CAPTION>
- -------------- -----------------------------------------------------------------------------------

AGGRESSIVE PRIMARY
FUND GROUP BALANCED GROWTH GROWTH OBJECTIVE(S) INVESTMENTS
<C> <C> <C> <C> <C> <C> <C>
- -------------- -----------------------------------------------------------------------------------
Neuberger Highest current Short-to-
Berman income consistent intermediate term
New York, N.Y. with low risk to investment-grade
principal and debt securities
liquidity and
secondarily total
return
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital growth Common stocks of
medium-to-large
capitalization
companies
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Common stocks of
growth companies that meet
both financial and
social criteria
- -------------- -----------------------------------------------------------------------------------
OCC Long-term capital Securities of
New York, N.Y. X appreciation undervalued
companies
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term capital Global investments
appreciation in equity
securities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Growth of capital Common stocks,
bonds and cash
equivalents
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Equity securities
appreciation of companies under
$1 billion
- -------------- -----------------------------------------------------------------------------------
Pilgrim Long-term capital Common stocks of
Phoenix, Ariz. X growth large cap, mid cap
or small cap
companies
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Equity securities
appreciation from
investing in a
diversified
portfolio of
equity securities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
High current High-yield bonds
yield and capital
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term capital International
appreciation equities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Capital growth Common stocks
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Common stocks of
appreciation mid-sized U.S.
companies
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Common stocks
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Common stocks
appreciation
- -------------- -----------------------------------------------------------------------------------
Putnam Capital growth Value stocks
Investments, and current
Inc. income
Boston, Mass.
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Growth stocks
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Growth stocks
appreciation
- -------------- -----------------------------------------------------------------------------------
</TABLE>

For each Fund's expenses, see "Investment Advisory Fees and Other Fund
Expenses."

10
<PAGE> 14

CHARGES AGAINST THE ACCUMULATION VALUE

The Accumulation Value of the Policy is subject to the Monthly Deduction
charges. Except for the Monthly Mortality and Expense Risk Charge, we will
deduct the Monthly Deduction each month from both the Fixed Accumulation Value
and the Variable Accumulation Value on a proportionate basis depending on their
relative Accumulation Values at that time. We will deduct the Monthly Mortality
and Expense Risk Charge on a proportionate basis from each Sub-Account of the
Variable Account depending on their relationship to the Variable Accumulation
Value at that time. See "Deductions and Charges -- Monthly Deduction."

The Monthly Deduction includes:

- Cost of Insurance -- A charge determined by multiplying the applicable
cost of insurance rate(s) by the net amount at risk.

- Monthly Administrative Charge -- currently $7.50 per month and
guaranteed not to exceed the product of $5.00 and the ratio (not to
exceed 2.00) of (a) the Consumer Price Index (for all urban households)
for the preceding September to (b) the Consumer Price Index for
September 1985.

- Monthly Mortality and Expense Risk Charge -- anticipated to be .90% of
the Variable Accumulation Value for the first 10 Policy Years and
anticipated to be .25% of the Variable Accumulation Value thereafter.
The Monthly Mortality and Expense Risk Charge is guaranteed not to
exceed 1.20% of the Variable Accumulation Value during the first 10
Policy Years and .55% of the Accumulation Value thereafter.

- Monthly Amount Charge -- a monthly charge determined by multiplying the
Face Amount by the applicable charge per $1,000 of Face Amount and
assessed during the first 20 Policy Years (and first 20 years after a
Face Amount increase). The maximum amount of this charge is $1.27 per
$1,000 Face Amount for policies issued to Joint Insureds with an Average
Age of 85.

- Any charges for optional insurance benefits -- vary depending upon the
benefit(s) selected.

CHARGE UPON LAPSE OR TOTAL SURRENDER OF THE POLICY

- We assess a Surrender Charge if your Policy lapses or if you surrender
the Policy during the first 15 Policy Years (or during the first 15
years following a Face Amount increase).

- We will determine the maximum Surrender Charge for the initial Face
Amount and any requested increases in Face Amount on the Policy Date and
on the effective date of any such requested increase.

- The maximum Surrender Charge for the initial Face Amount or requested
increase in Face Amount will be equal to $8.50 per thousand of initial
Face Amount.

- You do not pay this charge if the Policy remains in force during the
entire relevant 15-year period. See "Deductions and Charges -- Surrender
Charge."

SURRENDERS

- In general, you will receive the Cash Surrender Value if you surrender
the Policy.

- To determine the Cash Surrender Value, we reduce your Accumulation Value
by the Surrender Charge, if any, and any Loan Amount and unpaid Monthly
Deductions. See "Surrender Benefits -- Total Surrender."

PARTIAL WITHDRAWALS

- After the first Policy Year, once each Policy Year, you can withdraw
part of your Cash Surrender Value.

11
<PAGE> 15

- You will not incur a surrender charge, but partial withdrawals are
subject to a processing charge (currently $10, guaranteed not to exceed
$25). See "Surrender Benefits -- Partial Withdrawal."

LOANS

- At any time after the first Policy Year, generally you can borrow up to
100% of your Policy's Cash Value less any existing Loan Amount.

- Interest is payable in advance for each Policy Year and accrues daily at
an effective annual rate that will not exceed 5.66%

- After the 10th Policy Year, we currently charge interest at an annual
rate of 3.85% on the portion of your Loan Amount that is not in excess
of (1) the Accumulation Value, less (2) the total of all premiums paid
net of all partial withdrawals.

TRANSFERS

- Currently, you can transfer all or part of your Accumulation Value among
the investment options.

- We currently do not limit the number of transfers per Policy Year. We
reserve the right to limit you to 12 transfers per Policy Year.

- There are certain restrictions on transfers from the Fixed Account.

- We currently assess a $25 charge for transfers over 24 per Policy Year.
We reserve the right to assess a maximum charge of $25 for any transfer
over 12 per Policy Year. See "Transfers."

DEATH BENEFIT OVERVIEW

You also can choose one of two Death Benefit Options:

- Level Amount Option -- whereby the Death Benefit until age 100 of the
younger Joint Insured is the greater of the Face Amount or the corridor
percentage of Accumulation Value according to the younger Joint
Insured's attained age; or

- Variable Amount Option -- whereby the Death Benefit until age 100 of the
younger Joint Insured is equal to the greater of the Face Amount plus
the Accumulation Value, or the corridor percentage of Accumulation Value
according to the younger Joint Insured's attained age.

The Death Benefit until age 100 of the younger Joint Insured under the
Level Amount Option and the Variable Amount Option will never be less than the
Face Amount as long as the Policy is in force and there is no Loan Amount or
unpaid Monthly Deductions.

We will reduce the proceeds payable upon the death of the surviving Joint
Insured under any Death Benefit Option by any Loan Amount and any unpaid Monthly
Deductions.

ADJUSTING THE DEATH BENEFIT

Although we reserve the right to limit Face Amount increases and decreases
during the first four Policy Years, you have flexibility to adjust the Death
Benefit by increasing or decreasing the Face Amount. You cannot decrease the
Face Amount below the Minimum Face Amount shown in the Policy. Any increase in
the Face Amount may require additional evidence of insurability satisfactory to
us and will result in additional charges. See "Death Benefit -- Requested
Changes in Face Amount."

Generally, you may also change the Death Benefit Option at any time after
the fourth Policy Year.

See "Death Benefit -- Insurance Protection" for a discussion of available
techniques to adjust the amount of insurance protection to satisfy changing
insurance needs.

12
<PAGE> 16

DEATH BENEFIT GUARANTEE

If you meet the requirements for the Death Benefit Guarantee, we will not
lapse your Policy during the Death Benefit Guarantee Period even if the Cash
Surrender Value is not sufficient to cover the Monthly Deduction that is due.
See "Death Benefit Guarantee."

LAPSE

If the Death Benefit Guarantee is not in effect, the Policy will lapse if
the Cash Surrender Value is less than the Monthly Deduction due and if you do
not make a sufficient payment during the grace period of 61 days. See "Policy
Lapse and Reinstatement -- Lapse."

TAXATION OF DEATH BENEFIT PROCEEDS

Under current Federal tax law, as long as the Policy qualifies as life
insurance the Death Benefit under the Policy will be subject to the same Federal
income tax treatment as proceeds of traditional life insurance. Therefore, the
Death Benefit should not be taxable income to the beneficiary. See "Federal Tax
Matters -- Tax Status of the Policy."

TAXATION OF THE POLICY

The Company intends for the Policy to satisfy the definition of a life
insurance contract under Section 7702 of the Code. Under certain circumstances,
a Policy could be treated as a "modified endowment contract." The company will
monitor Policies and will attempt to notify an owner on a timely basis if his or
her Policy is in jeopardy of becoming a modified endowment contract. See
"Federal Tax Matters" for further discussion of the tax status of a Policy and
the tax consequences of being treated as a life insurance contract or a modified
endowment contract.

A Policy lapse, surrender, partial withdrawal or loan may have adverse tax
consequences in certain circumstances. See "Federal Tax Matters."

PART 2. DETAILED INFORMATION

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

ReliaStar Life Insurance Company of New York is a stock life insurance
company which was incorporated under the laws of the State of New York in 1917.
We are an indirect, wholly-owned subsidiary of ReliaStar Financial Corp. We
offer individual life insurance and annuities. Our home office is located at
1000 Woodbury Road, Suite 102, P.O. Box 9004, Woodbury, New York 11797.

We may occasionally publish in advertisements, sales literature, and
reports the ratings and other information assigned to us by one or more
independent rating organizations such as A.M. Best Company, Standard & Poor's,
Moody's, and Duff & Phelps. The purpose of the ratings is to reflect our
financial strength and/or claims-paying ability. They should not be considered
as bearing on the investment performance of assets held in the Variable Account.
Each year the A.M. Best Company reviews the financial status of many insurers,
culminating in the assignment of Best's Ratings. These ratings reflect their
current opinion of the relative financial strength and operating performance of
an insurance company in comparison to the norms of the life/health insurance
industry. Our rating of A+ by A.M. Best is assigned to companies demonstrating
superior overall performance and a very strong ability to meet obligations to
Policy holders over a long period. Such ratings do not reflect the investment in
the Variable Account.

ReliaStar is a charter member of the Insurance Marketplace Standard
Association ("IMSA"). Companies that belong to IMSA subscribe to a rigorous set
of standards that cover the various aspects of sales and service for
individually sold life insurance and annuities. IMSA members have adopted
policies and procedures that demonstrate a commitment to honesty, fairness and
integrity in all customer contacts involving sales and service of individual
life insurance and annuity products.

13
<PAGE> 17

THE POLICIES

The Policies are survivorship flexible premium variable life insurance
contracts with death benefits, cash values, and other features of traditional
life insurance contracts.

DEDUCTIONS AND CHARGES

We deduct certain charges in connection with the Policy to compensate us
for (1) providing the insurance benefits of the Policy (including any riders),
(2) administering the Policy, (3) assuming certain risks in connection with the
Policy, and (4) incurring expenses in distributing the Policy.

We deduct some of these charges from each Premium Payment. We deduct
certain other charges monthly from both the Fixed Account and the Variable
Account, or from the Variable Account only. We may also assess a charge for each
partial withdrawal and a charge for each transfer in excess of 12 transfers per
Policy Year.

The Surrender Charge usually exceeds the Accumulation Value in the early
Policy Years. This occurs because the Surrender Charge is usually more than the
accumulated Minimum Monthly Premiums less Policy charges in the early Policy
Years.

We may realize a profit on one or more of these charges, such as the
Mortality and Expense Risk Charge. We may use any such profits for any proper
corporate purpose, including, among other things, payment of sales expenses.

PREMIUM EXPENSE CHARGE

We deduct the Premium Expense Charge from each premium. The Premium Expense
Charge is 6.25% of each premium payment in Policy Years 1-10 and 3.75% of each
premium after the tenth Policy Year. The amount remaining after we deduct the
Premium Expense Charge is called the Net Premium.

MONTHLY DEDUCTION

We deduct the charges described below from the Accumulation Value of the
Policy on a monthly basis. The total of these charges is called the Monthly
Deduction.

We will deduct the Monthly Deduction on each Monthly Anniversary from the
Fixed Account and the Sub-Accounts of the Variable Account on a proportionate
basis depending on their relative Accumulation Values at that time. For purposes
of determining these proportions, we reduce the Fixed Accumulation Value by the
Loan Amount. Because the cost of insurance portion of the Monthly Deduction can
vary from month to month, the Monthly Deduction itself will vary in amount from
month to month.

If the Cash Surrender Value is not sufficient to cover the Monthly
Deduction on a Monthly Anniversary, the Policy may lapse. See "Death Benefit
Guarantee" and "Policy Lapse and Reinstatement."

COST OF INSURANCE. We will determine the monthly cost of insurance by
multiplying the applicable cost of insurance rate or rates by the net amount at
risk under the Policy. The net amount at risk under the Policy for a Policy
Month is (1) the Death Benefit at the beginning of the Policy Month divided by
1.00327374 (which reduces the net amount at risk, solely for purposes of
computing the cost of insurance, by taking into account assumed monthly earnings
at an annual rate of 4%), less (2) the Accumulation Value at the beginning of
the Policy Month (reduced by any charges for rider benefits). As a result, the
net amount at risk may be affected by changes in the Accumulation Value or in
the Death Benefit.

The Rate Class of any Joint Insured may affect the cost of insurance. We
currently place Insureds into standard Rate Classes or into substandard Rate
Classes that involve a higher mortality risk. In an otherwise identical Policy,
any Joint Insured in the standard Rate Class will have a lower cost of insurance
than any Joint Insured in a Rate Class with higher mortality risks.

14
<PAGE> 18

If there is an increase in the Face Amount and the Rate Class applicable to
the increase is different from that for the Initial Face Amount or any prior
requested increases in Face Amount, the net amount at risk will be calculated
separately for each Rate Class. For purposes of determining the net amount at
risk for each Rate Class, we will first assume the Accumulation Value to be part
of the Initial Face Amount. If the Accumulation Value is greater than the
Initial Face Amount, it will then be assumed to be part of each increase in
order, starting with the first increase.

We base cost of insurance rates on the sex, Issue age, Policy Year and Rate
Class(es) of each Joint Insured. The actual monthly cost of insurance rates will
reflect our expectations as to future experience. They will not, however, be
greater than the guaranteed cost of insurance rates shown in the Policy, which
are based on the Commissioner's 1980 Standard Ordinary Mortality Tables for
Smokers or Nonsmokers, respectively.

MONTHLY ADMINISTRATIVE CHARGE. Each month we deduct an administrative
charge of $7.50 which is guaranteed not to exceed the product of $5.00 and the
ratio (not to exceed 2.00) of (1) the Consumer Price Index (for all urban
households) for the preceding September to (2) the Consumer Price Index for
September 1985.

MONTHLY AMOUNT CHARGE. Each month during the first 20 Policy Years (and for
20 Policy Years following any requested increase in Face Amount) we deduct a
monthly charge per $1,000 of Face Amount. The amount of this charge varies by
Average Age of the Joint Insureds on the Policy Date (or on the effective date
of any requested increase in Face Amount, as appropriate). See Appendix D. This
charge compensates us for expenses relating to the distribution of the Policy,
including agents' commissions, advertising, and the printing of the Prospectus
and sales literature for new sales of the Policy. A portion of this charge may
also contribute to company profits.

MONTHLY MORTALITY AND EXPENSE RISK CHARGE. Each month during the first 10
Policy Years we will deduct a charge which is anticipated to be at an annual
rate of .90% of the Variable Accumulation Value of the Policy. Each month
thereafter, it is currently anticipated that we will deduct this charge at an
annual rate of .25% of the Variable Accumulation Value. The Monthly Mortality
and Expense Risk Charge is guaranteed not to exceed an annual rate of 1.20% of
the Variable Accumulation Value of the Policy during the first 10 Policy Years,
and .55% of the Accumulation Value of the Policy per Policy Year thereafter. The
mortality and expense risk we assume is that our cost of insurance charges and
other expense charges are not sufficient to cover our costs of death benefits,
and any other expenses incurred in issuing and administering the Policies.

OPTIONAL INSURANCE BENEFIT CHARGES. Each month we deduct charges for any
optional insurance benefits added to the Policy by rider. See "General
Provisions -- Optional Insurance Benefits."

SURRENDER CHARGE

GENERAL. During the first 15 Policy Years and during the first 15 years
following a requested increase in Face Amount, there is a Surrender Charge if
you surrender the Policy or the Policy lapses. The Surrender Charge will not be
affected by any decrease in Face Amount or by any change in Face Amount
resulting from a change in the Death Benefit Option.

The Surrender Charge imposed upon early surrender or lapse will be
significant. For example, if you make premium payments no greater than the
Minimum Monthly payments specified in your Policy, you can expect that during at
least the early Policy Years, all or substantially all of your premium payments
will be required to pay the Surrender Charge and other charges associated with
the Policy. As a result, you should purchase a Policy only if you have the
financial capability to keep it in force for a substantial period of time.

SURRENDER CHARGE. The maximum Surrender Charge for the Initial Face Amount
or any requested increase in Face Amount will be determined on the Policy Date
or on the effective date of any requested increase respectively. The maximum
Surrender Charge on the Initial Face Amount will be equal to $8.50 per $1,000 of
Initial Face Amount. The maximum Surrender Charge on any requested increase in
Face Amount will be equal to $8.50 per $1,000 of increase in the Face Amount.
This Surrender Charge for the Initial Face Amount remains level equal to the
maximum Surrender Charge during the first five Policy Years and then

15
<PAGE> 19

reduces in equal monthly increments until it becomes zero at the end of 15
years. The Surrender Charge for any requested increase in Face Amount follows a
similar pattern.

SURRENDER CHARGE CALCULATION. We determine the Surrender Charge for the
Initial Face Amount or any requested increase in Face Amount by multiplying (1)
$8.50 by (2) the Initial Face Amount or the Face Amount of the increase, as
applicable, and by (3) the applicable percentage from the Surrender Charge
Percentage Table below, and then dividing this amount by 1000. For example, a
$250,000 Face Amount Policy would have a maximum $2,125 Surrender Charge ($8.50
x 250,000 / 1,000 x 100%) the first five years of the Policy, and the Surrender
Charge would decline during the next ten years as indicated by the Table below.
For the Initial Face Amount, a Surrender Charge is measured from the Issue Date
and applies for 15 years from that Date. An increase in Face Amount of $100,000
in year 5 of the Policy would have its own (additional) Surrender Charge of $850
at the end of the first year ($8.50 x 100,000 / 1,000), and vary according to
the Table below. The 15 year applicable Surrender Charge for each increase is
measured from the date of the increase and applies for 15 years from the
Increase Date. In this example, all Surrender Charges would cease to apply after
the twentieth Policy Year.

SURRENDER CHARGE PERCENTAGE TABLE

<TABLE>
<CAPTION>
IF SURRENDER OR LAPSE OCCURS THE FOLLOWING PERCENTAGE OF THE
IN THE LAST MONTH OF POLICY YEAR SURRENDER CHARGE WILL BE PAYABLE:
- -------------------------------- ---------------------------------
<S> <C>
1 100%
2 100%
3 100%
4 100%
5 100%
6 90%
7 80%
8 70%
9 60%
10 50%
11 40%
12 30%
13 20%
14 10%
15 and later 0%
</TABLE>

For requested increases, years are measured from the date of the increase.

The percentages reduce equally for each Policy Month during the years shown. For
example, during the eleventh Policy Year, the percentage reduces equally each
month from 50% at the end of the tenth Policy Year to 40% at the end of the
eleventh Policy Year.

PARTIAL WITHDRAWAL AND TRANSFER CHARGES

We currently make no charge for the first 24 transfers in a Policy Year and
assess a $10 charge for each partial withdrawal. These charges are guaranteed
not to exceed $25 for each transfer in excess of 12 per Policy Year, and $25 for
each partial withdrawal for the duration of the Policy. The transfer charge will
not be imposed on transfers that occur as a result of Policy loans, the exercise
of conversion rights, the Dollar Cost Averaging or Portfolio Rebalancing
Service, or automatic withdrawals.

MODIFICATION OF CHARGES

ReliaStar may modify any of the charges under the Policy, as well as the
Minimum Face Amount set forth in this Prospectus, because of special
circumstances that result in lower sales, administrative, or mortality expenses.
For example, special circumstances may exist in connection with sales to our
Policy

16
<PAGE> 20

holders or those of affiliated insurance companies, or sales to employees or
clients of members of our affiliated group of insurance companies. The amount of
any reductions will reflect the reduced sales effort and administrative costs
resulting from, or the different mortality experience expected as a result of,
the special circumstances. Modifications will not be unfairly discriminatory
against any person, including the affected Policy owners and owners of all other
policies funded by the Variable Account.

INVESTMENT ADVISORY FEES AND OTHER FUND EXPENSES

Because the Variable Account purchases shares of the Funds, the net asset
value of the Variable Account's investments will reflect the investment advisory
fees and other expenses incurred by the Funds. Set forth below is information
provided by each Fund on its total 1999 annual expenses as a percentage of the
Fund's average net assets. See the prospectuses for the Funds for more
information concerning these expenses.

FUND EXPENSES

(BEFORE REIMBURSEMENTS)

<TABLE>
<CAPTION>
TOTAL INVESTMENT
MANAGEMENT OTHER FUND ANNUAL
FUND FEE EXPENSES EXPENSES
---- ---------- -------- ----------------
<S> <C> <C> <C>
AIM V.I. Dent Demographic Trends Funds -- Initial Class
(a)..................................................... 0.85% 0.55% 1.40%
Alger American Growth Portfolio (a)....................... 0.75% 0.04% 0.79%
Alger American Leveraged All Cap Portfolio (a)............ 0.85% 0.08% 0.93%
Alger American MidCap Growth Portfolio (a)................ 0.80% 0.05% 0.85%
Alger American Small Capitalization Portfolio (a)......... 0.85% 0.05% 0.90%
Fidelity VIP Equity-Income Portfolio -- Initial Class (a)
(b)..................................................... 0.48% 0.09% 0.57%
Fidelity VIP Growth Portfolio -- Initial Class (a) (b).... 0.58% 0.08% 0.66%
Fidelity VIP High Income Portfolio -- Initial Class (a)... 0.58% 0.11% 0.69%
Fidelity VIP Money Market Portfolio -- Initial Class...... 0.18% 0.09% 0.27%
Fidelity VIP II Contrafund(R) Portfolio -- Initial Class
(a) (b)................................................. 0.58% 0.09% 0.67%
Fidelity VIP II Index 500 Portfolio -- Initial Class (a)
(b)..................................................... 0.24% 0.10% 0.34%
Fidelity VIP II Investment Grade Bond Portfolio -- Initial
Class (a)............................................... 0.43% 0.11% 0.54%
Janus Aspen Aggressive Growth Portfolio (a) (c)........... 0.65% 0.02% 0.67%
Janus Aspen Growth Portfolio (a) (c)...................... 0.65% 0.02% 0.67%
Janus Aspen International Growth Portfolio (a) (c)........ 0.65% 0.11% 0.76%
Janus Aspen Worldwide Growth Portfolio (a) (c)............ 0.65% 0.05% 0.70%
Neuberger Berman Advisers Management Trust Limited
Maturity Bond Portfolio (a)............................. 0.65% 0.11% 0.76%
Neuberger Berman Advisers Management Trust Partners
Portfolio (a)........................................... 0.80% 0.07% 0.87%
Neuberger Berman Advisers Management Trust Socially
Responsive Portfolio (a) (d)............................ 0.85% 8.19% 9.04%
OCC Accumulation Trust Equity Portfolio (a) (e)........... 0.80% 0.11% 0.91%
OCC Accumulation Trust Global Equity Portfolio (a) (e).... 0.80% 0.30% 1.10%
OCC Accumulation Trust Managed Portfolio (a) (e).......... 0.77% 0.06% 0.83%
OCC Accumulation Trust Small Cap Portfolio (a) (e)........ 0.80% 0.09% 0.89%
</TABLE>

17
<PAGE> 21

<TABLE>
<CAPTION>
TOTAL INVESTMENT
MANAGEMENT OTHER FUND ANNUAL
FUND FEE EXPENSES EXPENSES
---- ---------- -------- ----------------
<S> <C> <C> <C>
Pilgrim VP Trust Growth Opportunities Portfolio (f) (g)... 0.75% 0.34% 1.09%
Pilgrim VP Trust Growth + Value Portfolio (f)............. 0.75% 0.22% 0.97%
Pilgrim VP Trust High Yield Bond Portfolio (f)............ 0.75% 0.36% 1.11%
Pilgrim VP Trust International Value Portfolio (f)........ 1.00% 0.52% 1.52%
Pilgrim VP Trust MagnaCap Portfolio (f) (g)............... 0.75% 0.34% 1.09%
Pilgrim VP Trust MidCap Portfolio (f) (g)................. 0.75% 0.34% 1.09%
Pilgrim VP Trust Research Enhanced Index Portfolio (f).... 0.75% 0.51% 1.26%
Pilgrim VP Trust SmallCap Opportunities Portfolio (f)..... 0.75% 0.34% 1.09%
Putnam VT Growth and Income Fund -- Class IA Shares....... 0.46% 0.04% 0.50%
Putnam VT New Opportunities Fund -- Class IA Shares....... 0.54% 0.05% 0.59%
Putnam VT Voyager Fund -- Class IA Shares................. 0.53% 0.04% 0.57%
</TABLE>

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

(a) The Company or its affiliates may receive compensation from an affiliate or
affiliates of certain of the Funds based upon an annual percentage of the
average net assets held in that Fund by the Company and by certain of the
Company's insurance company affiliates. These amounts are intended to
compensate the Company or the Company's affiliates for administrative,
record keeping, and in some cases distribution, and other services provided
by the Company and its affiliates to Funds and/or the Funds' affiliates.
Payments of such amounts by an affiliate or affiliates of the Funds do not
increase the fees paid by the Funds or their shareholders. The percentage
paid may vary from one Fund company to another.

(b) A portion of the brokerage commissions that certain Portfolios pay was used
to reduce Portfolio expenses. In addition, certain Portfolios have entered
into arrangements with their custodian whereby credits realized as a result
of uninvested cash balances are used to reduce custodian expenses. Including
these reductions, the total operating expenses presented in the table would
have been 0.56% for Fidelity VIP Equity-Income Portfolio, 0.65% for Fidelity
VIP Growth Portfolio; 0.28% for Fidelity VIP II Index 500 Portfolio; and
0.65% for Fidelity VIP II Contrafund Portfolio.

(c) Expenses are based upon expenses for the fiscal year ended December 31,
1999, restated to reflect a reduction in the management fee for Growth,
Aggressive Growth, International Growth and Worldwide Growth Portfolios. All
expenses are stated without the effect of expense offset arrangements.

(d) Neuberger Berman Management Inc. ("NBMI") has undertaken to reimburse the
Socially Responsive Portfolio for certain operating expenses, including the
compensation of Neuberger Berman Advisers Management Trust and excluding
taxes, interest, extraordinary expenses, brokerage commissions and
transaction costs, that exceed in the aggregate, 1.50% of the average daily
net asset value of the Socially Responsive Portfolio. Expenses were 1.53%
for the fiscal period ending December 31, 1999, after reimbursement. There
can be no assurance that this policy will be continued after May 1, 2001.
See "Expense Limitation" in the Socially Responsive Portfolio prospectus for
further information.

(e) Management Fees reflect effective management fees after taking into effect
any waiver. Other Expenses are shown before expense offsets afforded the
Portfolios. Total Portfolio Expenses for the Equity, Small Cap and Managed
Portfolios are limited by OpCap Advisors so that their respective annualized
operating expenses (net of expense offsets) do not exceed 1.00% of average
daily net assets. Total Portfolio Expenses for the Global Equity Portfolio
are limited to 1.25% of average daily net assets (net of expense offsets).

(f) The investment adviser to the Pilgrim Variable Products Trust has agreed to
reimburse the Growth + Value Portfolio and High Yield Bond Portfolio for any
expenses in excess of 0.80% of each Portfolio's average daily net assets. It
has also agreed to reimburse the SmallCap Opportunities Portfolio, Research
Enhanced Index Portfolio, Growth Opportunities Portfolio, MagnaCap
Portfolio, and MidCap Opportunities Portfolio for amounts in excess of
0.90%. It has agreed to reimburse International Value Portfolio for amounts
in excess of 1.00%. After the investment adviser's expense reimbursements,
the Total Fund Annual Expenses that were paid by each Portfolio during its
fiscal year ended December 31, 1999 were: Growth + Value Portfolio: 0.80%;
High Yield Bond Portfolio: 0.80%; International Value Portfolio:

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<PAGE> 22

1.00%; Research Enhanced Index Portfolio: 0.89%; SmallCap Opportunities
Portfolio: 0.90%. Expense reimbursements are voluntary. There is no
assurance of ongoing reimbursement.

(g) This portfolio had not commenced operations as of December 31, 1999 and,
therefore, these expenses are estimated.

THE VARIABLE ACCOUNT

On March 23, 1982, we established the ReliaStar Life Insurance Company of
New York Variable Life Separate Account I as one of our separate accounts
pursuant to the laws of the State of New York. The Variable Account :

- will receive and invest the Net Premiums paid and allocated to it under
this Policy;

- currently receives and invests net premiums for other classes of
flexible premium variable life insurance policies we issue and may do so
for additional classes in the future;

- meets the definition of a "separate account" under the federal
securities laws; and

- is registered with the SEC as a unit investment trust under the
Investment Company Act of 1940 ("1940 Act"). Such registration does not
involve supervision by the SEC of the management or investment policies
or practices of the Variable Account, us, or the Funds.

We own the Variable Account's assets. However, New York law provides that
we cannot charge the Variable Account with liabilities arising out of any other
business we may conduct. We are required to maintain assets which are at least
equal to the reserves and other liabilities of the Variable Account. We may
transfer assets which exceed these reserves and liabilities to our general
account (the Fixed Account).

INVESTMENTS OF THE VARIABLE ACCOUNT

There are currently 34 investment options (Funds) available under the
Variable Account. The Summary and section entitled "Additional Information on
the Investments of the Variable Account" describe the Funds currently offered.
You also should read the Funds' prospectuses for more detailed information,
particularly because several of the Funds and portfolios may have objectives
that are quite similar. Please call the telephone number listed on the first
page of this Prospectus to request a Fund's prospectus. THERE IS NO ASSURANCE
THAT ANY FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVE(S).

PERFORMANCE INFORMATION

Performance information for the Sub-Accounts of the Variable Account and
the Funds available for investment by the Variable Account may appear in
advertisements, sales literature, or reports to Policy owners or prospective
purchasers. Such performance information for the Sub-Accounts will reflect
deductions of Fund expenses and be adjusted to reflect the Mortality and Expense
Risk Charge, but will not reflect deductions for the cost of insurance or the
Surrender Charge. We will accompany quotations of performance information for
the Funds with performance information for the Sub-Accounts. Performance
information for the Funds will take into account all fees and charges at the
Fund level, but will not reflect any deductions from the Variable Account.
Performance information reflects only the performance of a hypothetical
investment during a particular time period in which the calculations are based.
We may provide performance information showing total returns and average annual
total returns for periods prior to the date a Sub-Account commenced operation.
We will calculate such performance information based on the assumption that the
Sub-Accounts were in existence for the same periods as those indicated for the
Funds, with the level of charges at the Variable Account level that were in
effect at the inception of the Sub-Accounts.

We may also provide individualized hypothetical illustrations of
Accumulation Value, Cash Surrender Value and Death Benefit based on historical
investment returns of the Funds. These illustrations will reflect deductions for
Fund expenses and Policy and Variable Account charges, including the Monthly
Deduction, Premium Expense Charge and the Surrender Charge. We will base these
hypothetical illustrations on the

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<PAGE> 23

actual historical experience of the Funds as if the Sub-Accounts were in
existence and a Policy issued for the same periods as those indicated for the
Funds.

We may compare performance of the Sub-Accounts and/or the Funds in
advertisements and sales literature:

- to other variable life insurance issuers in general

- to the performance of particular types of variable life insurance
policies investing in mutual funds

- to investment series of mutual funds with investment objectives similar
to each of the Sub-Accounts, whose performance is reported by Lipper
Analytical Services, Inc. and Morningstar, Inc. (independent services
that monitor and rank the performances of variable life insurance
issuers in each of the major categories of investment objectives on an
industry-wide basis), or reported by other series, companies,
individuals or other industry or financial publications of general
interest, such as Forbes, Money, The Wall Street Journal, Business Week,
Barron's, Kiplinger's and Fortune

- to the Standard & Poor's Index of 500 common stocks and the Dow Jones
Industrials, which are widely used measures of stock market performance

We may also compare the performance of each Sub-Account to other widely
recognized indices. Unmanaged indices may assume the reinvestment of dividends,
but typically do not reflect any "deduction" for the expense of operating or
managing an investment portfolio.

DEATH BENEFIT

If the Surviving Joint Insured dies while the Policy is in force, we will
pay the Death Benefit reduced by any Loan Amount and unpaid Monthly Deductions.
This amount is called the proceeds. We may pay all or part of the proceeds in
cash to your beneficiaries or under one or more of the settlement options we
offer. See "General Provisions -- Settlement Options."

DEATH BENEFIT OPTIONS

The Policy provides two Death Benefit Options as shown below. You choose
the Death Benefit Option on the application for the Policy. Subject to certain
limitations, you can change the Death Benefit Option after the Policy is issued.
See "Death Benefit -- Changing the Death Benefit Option."

LEVEL AMOUNT OPTION. (OPTION A.) The Death Benefit is the greater of the
current Face Amount of the Policy or the Corridor Percentage of Accumulation
Value on the Valuation Date on or next following the date of the Surviving Joint
Insured's death. Under the Level Amount Option, the Death Benefit will remain
level unless the corridor percentage of Accumulation Value exceeds the current
Face Amount, in which case the amount of the Death Benefit will vary as the
Accumulation Value varies.

ILLUSTRATION OF LEVEL AMOUNT OPTION. For purposes of this illustration,
assume that the younger Joint Insured is under age 40, and that there is no Loan
Amount. Under the Level Amount Option, a Policy with a $100,000 Face Amount will
generally have a $100,000 Death Benefit. However, because the Death Benefit must
be equal to or be greater than 250% of the Accumulation Value, any time the
Accumulation Value of the Policy exceeds $40,000, the Death Benefit will exceed
the $100,000 Face Amount. Each additional dollar added to the Accumulation Value
above $40,000 will increase the Death Benefit by $2.50. Thus, if the
Accumulation Value exceeds $40,000 and increases by $100 because of investment
performance or premium payments, the Death Benefit will increase by $250. A
Policy owner with an Accumulation Value of $50,000 will be entitled to a Death
Benefit of $125,000 ($50,000 x 250%); an Accumulation Value of $75,000 will
yield a Death Benefit of $187,500 ($75,000 x 250%); and an Accumulation Value of
$100,000 will yield a Death Benefit of $250,000 ($100,000 x 250%).

Similarly, as long as the Accumulation Value exceeds $40,000, each dollar
taken out of the Accumulation Value will reduce the Death Benefit by $2.50. If,
for example, the Accumulation Value is reduced from $75,000 to $70,000 because
of partial withdrawals, charges, or negative investment performance, the Death

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<PAGE> 24

Benefit will be reduced from $187,500 to $175,000. If at any time before the
younger Joint Insured's age 100, however, the Accumulation Value multiplied by
the corridor percentage is less than the Face Amount, the Death Benefit will
equal the current Face Amount of the Policy.

The corridor percentage becomes lower as the younger Joint Insured's age
increases. If the current age of the younger Joint Insured in the illustration
above were, for example, 50 (rather than under age 40), the corridor percentage
would be 185%. The Death Benefit would not exceed the $100,000 Face Amount
unless the Accumulation Value exceeded approximately $54,055 (rather than
$40,000), and each $1 then added to or taken from the Accumulation Value would
change the Death Benefit by $1.85 (rather than $2.50).

CORRIDOR PERCENTAGE TABLE

<TABLE>
<CAPTION>
CORRIDOR CORRIDOR CORRIDOR
YOUNGER JOINT INSURED'S PERCENTAGE OF YOUNGER JOINT INSURED'S PERCENTAGE OF YOUNGER JOINT INSURED'S PERCENTAGE OF
AGE ON PREVIOUS POLICY ACCUMULATION AGE ON PREVIOUS POLICY ACCUMULATION AGE ON PREVIOUS POLICY ACCUMULATION
ANNIVERSARY VALUE ANNIVERSARY VALUE ANNIVERSARY VALUE
- ----------------------- ------------- ----------------------- ------------- ----------------------- -------------
<S> <C> <C> <C> <C> <C>
40 or younger 250% 54 157 68 117
41 243 55 150 69 116
42 236 56 146 70 115
43 229 57 142 71 113
44 222 58 138 72 111
45 215 59 134 73 109
46 209 60 130 74 107
47 203 61 128 75-90 105
48 197 62 126 91 104
49 191 63 124 92 103
50 185 64 122 93 102
51 178 65 120 94 101
52 171 66 119 95-100 100
53 164 67 118
</TABLE>

VARIABLE AMOUNT OPTION. (Option B.) The Death Benefit is equal to the
greater of the current Face Amount plus the Accumulation Value of the Policy, or
the Accumulation Value multiplied by the corridor percentage according to the
younger Joint Insured's attained age. The corridor percentage is 250% for the
younger Joint Insured age 40 or below, and the percentage declines with
increasing age as shown in the Corridor Percentage Table above. Accordingly,
under the Variable Amount Option the amount of the Death Benefit will always
vary as the Accumulation Value varies.

ILLUSTRATION OF VARIABLE AMOUNT OPTION. For purposes of this illustration,
assume that the younger Joint Insured is under age 40 and that there is no Loan
Amount. Under the Variable Amount Option, a Policy with a Face Amount of
$100,000 will generally pay a Death Benefit of $100,000 plus the Accumulation
Value. Thus, for example, a Policy with an Accumulation Value of $20,000 will
have a Death Benefit of $120,000 ($100,000 + $20,000); an Accumulation Value of
$40,000 will yield a Death Benefit of $140,000 ($100,000 + $40,000). The Death
Benefit, however, must be at least 250% of the Accumulation Value. As a result,
if the Accumulation Value of the Policy exceeds approximately $66,667, the Death
Benefit will be greater than the Face Amount plus the Accumulation Value. Each
additional dollar of the Accumulation Value above $66,667 will increase the
Death Benefit by $2.50. Thus, if the Accumulation Value exceeds $66,667 and
increases by $100 because of investment performance or premium payments, the
Death Benefit will increase by $250. A Policy owner with an Accumulation Value
of $75,000 will be entitled to a Death Benefit of $187,500 ($75,000 x 250%); an
Accumulation Value of $100,000 will yield a Death Benefit of $250,000 ($100,000
x 250%); and an Accumulation Value of $125,000 will yield a Death Benefit of
$312,500 ($125,000 x 250%).

Similarly, any time the Accumulation Value exceeds $66,667, each dollar
taken out of the Accumulation Value will reduce the Death Benefit by $2.50. If,
for example, the Accumulation Value is reduced from $75,000 to $70,000 because
of partial withdrawals, charges, or negative investment performance, the Death

21
<PAGE> 25

Benefit will be reduced from $187,500 to $175,000. If at any time before the
younger Joint Insured's age 100, however, the Accumulation Value multiplied by
the corridor percentage is less than the Face Amount plus the Accumulation
Value, then the Death Benefit will be the current Face Amount plus the
Accumulation Value of the Policy. The Death Benefit after age 100 is the
Accumulation Value.

The corridor percentage becomes lower as the younger Joint Insured's age
increases. If the current age of the younger Joint Insured in the illustration
above were, for example, 50 (rather than under 40), the corridor percentage
would be 185%. The amount of the Death Benefit would be the sum of the
Accumulation Value plus $100,000 unless the Accumulation Value exceeded
approximately $117,647 (rather than $66,667), and each $1 then added to or taken
from the Accumulation Value would change the Death Benefit by $1.85 (rather than
$2.50).

WHICH DEATH BENEFIT OPTION TO CHOOSE

If you prefer to have premium payments and favorable investment performance
reflected partly in the form of an increasing Death Benefit, you should choose
the Variable Amount Option. If you are satisfied with the amount of your
existing insurance coverage and prefer to have premium payments and favorable
investment performance reflected to the maximum extent in the Accumulation Value
and lower cost of insurance charges, you should choose the Level Amount Option.

REQUESTED CHANGES IN FACE AMOUNT

Subject to certain limitations, you may request an increase or decrease in
the Face Amount. No increase or decrease in the Face Amount will be permitted
during the first four Policy Years.

INCREASES. You must submit a written request to us to increase the Face
Amount. We may also require additional evidence of insurability satisfactory to
us. The effective date of the increase will be the Monthly Anniversary on or
next following our approval of the increase. The increase may not be less than
$5,000. We currently permit increases until any Joint Insured exceeds age 85. We
will deduct any charges associated with the increase (the increases in the cost
of insurance and the Surrender Charge upon lapse or total surrender -- see
"Effect of Requested Changes in Face Amount") from the Accumulation Value,
whether or not you pay an additional premium in connection with the increase.
You will be entitled to limited free look and conversion rights with respect to
requested increases in Face Amount. See "Free Look and Conversion Rights."

DECREASES. You must submit a written request to us to decrease the Face
Amount. Any decrease in the Face Amount will be effective on the Monthly
Anniversary on or next following our receipt of a written request. You cannot
request a decrease in the Face Amount more frequently than once every six
months. The Face Amount remaining in force after any requested decrease may not
be less than the Minimum Face Amount shown in the Policy. Under our current
rules, the Minimum Face Amount is $250,000, but we reserve the right to
establish a different Minimum Face Amount. If, following a decrease in Face
Amount, the Policy would no longer qualify as life insurance under Federal tax
law (see "Federal Tax Matters -- Tax Status of the Policy"), we will limit the
decrease to the extent necessary to meet these requirements.

For purposes of determining the cost of insurance, decreases in the Face
Amount will be applied to reduce the current Face Amount in the following order:

(1) The Face Amount provided by the most recent increase;

(2) The next most recent increases successively; and

(3) The Face Amount when the Policy was issued.

By reducing the current Face Amount in this manner, the Rate Class
applicable to the most recent increase in Face Amount will be eliminated first,
then the Rate Class applicable to the next most recent increase, and so on, for
the purposes of calculating the cost of insurance. This assumption will affect
the cost of insurance under the Policy only if different Rate Classes have been
applied to the current Face Amount. We currently place Insureds into standard
Rate Classes or into substandard Rate Classes that involve a higher

22
<PAGE> 26

mortality risk (for example, a 200% Rate Class or a 300% Rate Class). In an
otherwise identical Policy, an Insured in the standard Rate Class will have a
lower cost of insurance than an Insured in a substandard Rate Class with higher
mortality risks. See "Deductions and Charges -- Monthly Deduction."

For example, assume that the Initial Face Amount was $50,000 with a
standard Rate Class, and that successive increases of $25,000 (at a Rate Class
of 200%) and $50,000 (at a Rate Class of 300%) were added. If a decrease of
$50,000 or less is requested, the amount of insurance at a 300% Rate Class will
be reduced first. If a decrease of more than $50,000 is requested, the amount at
a 300% Rate Class will be eliminated, and the excess over $50,000 will next
reduce the amount of insurance at a 200% Rate Class.

EFFECT OF REQUESTED CHANGES IN FACE AMOUNT. An increase or decrease in Face
Amount will affect the Monthly Deduction because the cost of insurance and the
Monthly Amount Charge depend upon the Face Amount. The charge for certain
optional insurance benefits may also be affected. See "Deductions and
Charges -- Monthly Deduction." An increase in the Face Amount will increase the
Surrender Charge, but a decrease in the Face Amount will not reduce the
Surrender Charge or the Monthly Amount Charge. The Surrender Charge is, however,
imposed only upon lapse or total surrender of the Policy and not upon a
requested decrease in Face Amount. See "Deductions and Charges -- Surrender
Charge."

An increase in the Face Amount will increase the Minimum Monthly Premium as
of the effective date of the increase. Therefore, additional premium payments
may be required to maintain the Death Benefit Guarantee. A decrease in the Face
Amount will reduce the Minimum Monthly Premium as of the effective date of the
decrease. Face Amount changes may also change the Death Benefit Guarantee
Period. See "Death Benefit Guarantee."

The additional Surrender Charge on a requested increase in the Face Amount
will reduce the Cash Surrender Value (which is the Accumulation Value less any
Surrender Charge, Loan Amount and unpaid Monthly Deductions). If the resulting
Cash Surrender Value is not sufficient to cover the Monthly Deduction, the
Policy may lapse unless the Death Benefit Guarantee is in effect. See "Policy
Lapse and Reinstatement -- Lapse" and "Death Benefit Guarantee."

INSURANCE PROTECTION

As your insurance needs change, you may increase or decrease the pure
insurance protection provided by the Policy (that is, the difference between the
Death Benefit and the Accumulation Value) in one of several ways. These ways
include:

- increasing or decreasing the Face Amount of insurance, changing the level
of premium payments, and,

- making a partial withdrawal under the Policy.

Although the consequences of each of these methods will depend upon the
individual circumstances, they may be generally summarized as follows:

- AN INCREASE IN THE FACE AMOUNT (which is generally subject to
underwriting approval -- see "Death Benefit -- Requested Changes in Face
Amount") will likely increase the amount of pure insurance protection,
depending on the amount of Accumulation Value and the resultant corridor
percentage limitation. If the insurance protection is increased, the
Policy charges generally will increase as well.

- A DECREASE IN THE FACE AMOUNT will, subject to the corridor percentage
limitations (see "Death Benefit Options -- Death Benefit Options"),
decrease the pure insurance protection without reducing the Accumulation
Value. If the Face Amount is decreased, the Cost of Insurance charges
generally will decrease as well. (Note that the Surrender Charge will not
be reduced. See "Deductions and Charges -- Surrender Charge.")

- A CHANGE IN THE LEVEL OF PREMIUM can have a variety of effects, as
follows.

Under the Level Amount Option, until the corridor percentage of
Accumulation Value exceeds the Face Amount, (a) an increased level of
premium payments will reduce the amount of pure insurance

23
<PAGE> 27

protection, and (b) a reduced level of premium payments will increase the
amount of pure insurance protection.

Under the Variable Amount Option, until the corridor percentage of
Accumulation Value exceeds the Face Amount plus the Accumulation Value,
the level of premium payments will not affect the amount of pure insurance
protection, (However, both the Accumulation Value and the Death Benefit
will be increased if premium payments are increased, and reduced if
premium payments are reduced.)

Under any Death Benefit Option, if the Death Benefit is the corridor
percentage of Accumulation Value, then (a) an increased level of premium
payments will increase the amount of pure insurance protection (subject to
underwriting approval -- see "Payment and Allocation of Premiums -- Amount
and Timing of Premiums", and (b) a reduced level of premium payments will
reduce the pure insurance protection.

- A PARTIAL WITHDRAWAL will reduce the Death Benefit. See "Surrender
Benefits -- Partial Withdrawal". However, it has a limited effect on the
amount of pure insurance protection and charges under the Policy, because
the decrease in the Death Benefit is usually equal to the amount of
Accumulation Value withdrawn. The Primary use of a partial withdrawal is
to withdraw Accumulation Value. Furthermore, it results in a reduced
amount of Accumulation Value and increases the possibility that the
Policy will lapse.

You should consider the techniques described in this section for
changing the amount of pure insurance protection under the Policy (for
example, changing the Face Amount, making a partial withdrawal, and
changing the amount of premium payments) together with the other
restrictions and considerations described elsewhere in this Prospectus.

CHANGING THE DEATH BENEFIT OPTION

After the fourth Policy Year, you may change the Death Benefit Option once
each Policy Year. You must submit a written request to change the Death Benefit
Option. A change in the Death Benefit Option will also change the Face Amount.
If the Death Benefit Option is changed from the Level Amount Option to the
Variable Amount Option, the Face Amount will be decreased by an amount equal to
the Accumulation Value on the effective date of the change. You cannot change
from the Level Amount Option to the Variable Amount Option if the resulting Face
Amount would fall below the minimum Face Amount (currently $25,000).

If you request to change the Death Benefit Option from the Variable Amount
Option to the Level Amount Option, we will increase the Face Amount by an amount
equal to the Policy's Accumulation Value on the effective date of the change.

An increase or decrease in Face Amount resulting from a change in the Death
Benefit Option will affect the future Monthly Deductions because the cost of
insurance depends upon the Face Amount. A change in the Face Amount resulting
from a change in the Death Benefit Option may also affect the charge for certain
optional insurance benefits. See "Deductions and Charges -- Monthly Deduction."
However, a Face Amount change resulting from a Death Benefit Option change will
not affect the Surrender Charge.

Changes in the Death Benefit Option do not currently require additional
evidence of insurability.

PAYMENT AND ALLOCATION OF PREMIUMS

ISSUING THE POLICY

Both individuals applying for a Policy must complete an application and
personally deliver it to our licensed agent. We will generally only issue a
Policy to applicants where both Joint Insureds' ages are 85 or less and both
supply evidence of insurability satisfactory to us. Acceptance is subject to our
underwriting rules and we reserve the right to reject an application for any
reason permitted by law.

24
<PAGE> 28

COVERAGE. Coverage under a Policy begins on the later of the Issue Date or
the date we receive at least the minimum initial premium (see immediately
following section). In general, if the applicants pay at least the minimum
initial premium with the application, the Issue Date will be the later of the
date of the application or the date of any medical examination required by our
underwriting procedures. However, if underwriting approval has not occurred
within 45 days after we receive the application or if you authorize premiums to
be paid by bank account monthly deduction, the Issue Date will be the date of
underwriting approval.

If you authorize premiums to be paid by government allotment, the Issue
Date generally will be, subject to our underwriting approval, the first day of
the month in which we receive the first Minimum Monthly Premium through
government allotment, whether or not a Minimum Monthly Premium is collected with
the application. If a Minimum Monthly Premium is collected with the application,
it will be allocated to the Sub-Accounts of the Variable Account and the Fixed
Account on the Valuation Date next following the Issue Date.

MINIMUM INITIAL PREMIUM. The minimum initial premium is three Minimum
Monthly Premiums. See "Death Benefit Guarantee." If, however, you authorize
premiums to be paid by bank account monthly deduction or government allotment,
we will accept one Minimum Monthly Premium together with the required
authorization forms. The Minimum Monthly Premium is specified in the Policy and
determines the payments required to maintain the Death Benefit Guarantee.

TEMPORARY INSURANCE. When the application is taken, you can receive
temporary insurance coverage by paying a premium equal to 10% of annualized
Minimum Monthly Premium. The temporary insurance will be for the face amount
specified in the premium receipt and will be effective until the earliest of the
following:

- The date the coverage under the Policy is effective.

- The date you receive an offer for an alternative policy, a notice of
termination of temporary insurance coverage, or notice that we have
rejected the application.

- The date of death of the proposed Surviving Joint Insured or any
proposed additional Joint Insured.

- The 180th day after the date of the receipt for the temporary insurance.

ALLOCATING PREMIUMS

You choose the initial allocation of your Net Premiums (your gross premiums
less the Premium Expense Charge) to the Fixed Account and the Sub-Accounts of
the Variable Account on the application for the Policy. You may change the
allocation at any time by notifying us in writing. Changes will not be effective
until the date we receive your request and will only affect premiums we receive
on or after that date. The premium allocation may be 100% to the Fixed Account
or the Sub-Accounts or divided among the Fixed Account and the Sub-Accounts in
whole percentage points totaling 100%. We reserve the right to adjust any
allocation to eliminate fractional percentages. Changing the current Net Premium
allocation will not affect the allocation of existing Accumulation Value.

CREDITING NET PREMIUMS. We will credit Net Premiums on the latest of the
following dates:

- The Valuation Date following the date of underwriting approval.

- The Valuation Date on or next following the Policy Date.

- The Valuation Date on or next following the date we have received at the
required minimum initial premium payment.

- In the case of Policies issued under government allotment programs, the
Valuation Date next following the Issue Date.

Until the date on which Net Premiums are credited as described above, we
will hold premium payments in our General Account. No interest will be earned on
these premium payments during this period of time.

25
<PAGE> 29

REFUNDING PREMIUMS. We will return all premiums paid without interest if
any of the following occur:

- We send notice to the applicant(s) that the insurance is declined.

- The applicant(s) refuses an offer for an alternative policy.

- The applicant(s) does not supply required medical exams or tests within
30 days of the date of the application.

- The applicant(s) returns the Policy under the limited free look right.
See "Free Look and Conversion Rights -- Free Look Rights."

AMOUNT AND TIMING OF PREMIUMS

The amount and frequency of premium payments will affect the Accumulation
Value, the Cash Surrender Value, and how long the Policy will remain in force
(including affecting whether the Death Benefit Guarantee is in effect ). See
"Death Benefit Guarantee." After the initial premium, you may determine the
amount and timing of subsequent premium payments within the following
restrictions:

- We require that you pay cumulative premiums sufficient to maintain the
Death Benefit Guarantee to keep the Policy in force during at least the
first several Policy Years. See "Death Benefit Guarantee."

- We may choose not to accept any premium less than $25.

- We reserve the right to limit the amount of any premium payment. In
general, during the first Policy Year we will not accept total premium
payments in excess of $250,000 on the lives of the Joint Insureds,
whether such payments are received on a Policy or on any other insurance
policy issued by us or our affiliates. Also, we will not accept any
premium payment in excess of $50,000 on any Policy after the first
Policy Year. We may waive any of these premium limitations.

- We may require additional evidence of insurability satisfactory to us if
any premium would increase the difference between the Death Benefit and
the Accumulation Value (that is, the net amount at risk). A premium
payment would increase the net amount at risk if at the time of payment
the Death Benefit would be based upon the applicable corridor percentage
of Accumulation Value. See "Death Benefit -- Death Benefit Options."

- In no event may the total of all premiums paid, both scheduled and
unscheduled, exceed the current maximum premium payments allowed for
life insurance under Section 7702 of the Code. If at any time you pay a
premium which would result in total premiums exceeding the current
maximum premiums allowed, we will only accept that portion of the
premium which would make total premiums equal the maximum. We will
return any part of the premium in excess of that amount, and we will not
accept further premiums until allowed by the current maximum premium
limitations.

- You may pay additional premiums (other than Planned Periodic Premiums)
at any time while the Policy is in force. We may limit the number and
amount of these additional premiums.

- If you want to make a large premium payment under this Policy, and you
wish to avoid Modified Endowment Contract classification, you may
contact us in writing before making the payment and we will tell you the
maximum amount which you can pay into the Policy. See "Federal Tax
Matters -- Tax Status of the Policy."

PLANNED PERIODIC PREMIUMS

You may choose a Planned Periodic Premium schedule which indicates a
preference as to future amounts and frequency of payment. You may pay Planned
Periodic Premiums annually, semi-annually, quarterly, by bank account monthly
deduction, or government allotment.

Your Policy will show the amount and frequency of your initial Planned
Periodic Premium. You may change the Planned Periodic Premium at any time by
written request. We may limit the amount of any increase, if such an increase
would result in planned periodic premiums that are larger than (a) the maximum
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<PAGE> 30

premium we would accept under the Amount and Timing of Premium Payments
provisions in the Policy or (b) the Planned Periodic Premium which would total
more than $50,000 per year. Failure to make any Planned Periodic Premium payment
will not, however, necessarily result in lapse of the Policy. On the other hand,
making Planned Periodic Premium payments will not guarantee that the Policy
remains in force. See "Death Benefit Guarantee" and "Policy Lapse and
Reinstatement."

UNSCHEDULED ADDITIONAL PREMIUMS

Premiums, other than Planned Periodic Premiums, may be paid at any time
while the Policy is in force. We may limit the number and amount of these
additional payments.

PAYING PREMIUMS BY MAIL

Planned Periodic Premiums and Unscheduled Additional Premiums may be paid
to the Company by mailing them to:

ReliaStar Life Insurance Company of New York
NW 7353
P.O. Box 1450
Minneapolis, MN 55485-7353

DEATH BENEFIT GUARANTEE

If you meet the requirements described below, we guarantee that we will not
lapse the Policy even if the Cash Surrender Value is not sufficient to cover the
Monthly Deduction that is due. This feature of the Policy is called the "Death
Benefit Guarantee." Each Policy will specify the Death Benefit Guarantee Period.
The Death Benefit Guarantee Period depends on the issue ages and premium classes
of the Joint Insureds, Death Benefit Option, and any Optional Insurance
Benefits. Certain Policy changes may also change the Death Benefit Guarantee
Period.

Following is a table of typical Death Benefit Guarantee Periods. The
examples assume that the Joint Insureds are a male and a female, both of the
same issue age, both with no substandard ratings, a $1,000,000 Face Amount, and
no Optional Insurance Benefits. Policies with substandard ratings and Optional
Insurance Benefits will typically have a shorter Death Benefit Guarantee Period.

<TABLE>
<CAPTION>
DEATH BENEFIT DEATH BENEFIT
AGE AND CLASS OF JOINT INSUREDS OPTION GUARANTEE PERIOD
------------------------------- ------------- ----------------
<S> <C> <C>
45 Non-Tobacco................................... A (Level) 37 Years
45 Non-Tobacco................................... B (Variable) 35 Years
65 Non-Tobacco................................... A (Level) 17 Years
65 Non-Tobacco................................... B (Variable) 16 Years
45 Tobacco....................................... A (Level) 35 Years
45 Tobacco....................................... B (Variable) 33 Years
65 Tobacco....................................... A (Level) 15 Years
65 Tobacco....................................... B (Variable) 14 Years
</TABLE>

In general, the two most significant benefits from the Death Benefit
Guarantee are as follows:

- First, during the early Policy Years, the Cash Surrender Value may not
be sufficient to cover the Monthly Deduction, so that the Death Benefit
Guarantee will be necessary to avoid lapse of the Policy. See "Policy
Lapse and Reinstatement." This occurs because the Surrender Charge
usually exceeds the Accumulation Value in these years. In this regard,
you should consider that if you request an increase in Face Amount, an
additional Surrender Charge would apply for the fifteen years following
the increase, which could create a similar possibility of lapse as
exists during the early Policy Years.

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<PAGE> 31

- Second, to the extent the Cash Surrender Value declines due to poor
investment performance, or due to an additional Surrender Charge after a
requested increase, the Cash Surrender Value may not be sufficient even
in later Policy Years to cover the Monthly Deduction, so that the Death
Benefit Guarantee may also be necessary in later Policy Years to avoid
lapse of the Policy. Thus, even though the Policy permits premium
payments that are less than the Minimum Monthly Premiums, you may lose
the significant protection provided by the Death Benefit Guarantee by
paying less than the Minimum Monthly Premiums.

REQUIREMENTS FOR THE DEATH BENEFIT GUARANTEE

The Death Benefit Guarantee will be in effect if the sum of all premiums
paid minus any partial withdrawals and any loans are equal to or greater than
the sum of the Minimum Monthly Premiums since the Policy Date. You must satisfy
the requirements for the Death Benefit Guarantee as of each Monthly Anniversary,
even though you do not have to pay premiums monthly.

EXAMPLE: The Policy Date is January 1, 2000. The Minimum Monthly Premium is
$1000 per month. No Policy loans or partial withdrawals are taken and no Face
Amount changes have occurred.

Case 1. You pay $1000 each month. The Death Benefit Guarantee is
maintained.

Case 2. You pay $10,000 on January 1, 2000. The $10,000 maintains the Death
Benefit Guarantee without your paying any additional premiums for
the next 10 months (through October 31, 2000). However, you must
pay at least $1000 by November 1, 2000 to maintain the Death
Benefit Guarantee through November 30, 2000.

We will determine (and the Policy will indicate) the amount of the initial
Minimum Monthly Premium at issuance of the Policy. The initial Minimum Monthly
Premium will depend upon each Joint Insured's sex, age at issue, Rate Class,
optional insurance benefits added by rider, and the Initial Face Amount.

The following Policy changes may change the Minimum Monthly Premium.

- A requested increase or decrease in the Face Amount (see "Death Benefit
-- Requested Changes in Face Amount").

- A change in the Death Benefit Option (see "Death Benefit -- Changing the
Death Benefit Option").

- The addition or termination of a Policy rider (see "General Provisions
-- Optional Insurance Benefits").

We will notify you in writing of any changes in the Minimum Monthly
Premium.

If you have not made sufficient premium payments to maintain the Death
Benefit Guarantee as of any Monthly Anniversary, we will send you notice of the
premium payment required to maintain it. If we do not receive the required
premium payment within 61 days from the date of our notice, the Death Benefit
Guarantee will terminate. The Death Benefit Guarantee cannot be reinstated.

Even if the Death Benefit Guarantee terminates, the Policy will not
necessarily lapse. For a discussion of the circumstances under which the Policy
may lapse, see "Policy Lapse and Reinstatement."

ACCUMULATION VALUE

The Accumulation Value of the Policy is equal to the sum of the Variable
Accumulation Value plus the Fixed Accumulation Value. You should distinguish the
Accumulation Value from the Cash Surrender Value that would actually be paid to
you upon total surrender of the Policy, which is the Accumulation Value less any
Surrender Charge, Loan Amount and unpaid Monthly Deductions. See "Surrender
Benefits -- Total Surrender." You should also distinguish the Accumulation Value
from the Cash Value, which determines the amount available for Policy loans, and
is the Accumulation Value less any Surrender Charge. See "Policy Loans."

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<PAGE> 32

The Variable Accumulation Value will generally vary daily and will increase
or decrease to reflect the investment performance of the Funds in which
Sub-Accounts of the Variable Account have been invested.

We will increase the Variable Accumulation Value by:

- any Net Premiums credited to the Variable Account, and

- any transfers from the Fixed Account.

We will reduce the Variable Accumulation Value by:

- the Monthly Deduction attributable to the Variable Account,

- partial withdrawals from the Variable Account,

- any transfer and partial withdrawal charges attributable to the Variable
Account, and

- any amounts transferred from the Variable Account to the Fixed Account
(including amounts transferred from the Variable Account to the Fixed
Account as security for Policy loans -- see "Policy Loans").

We will increase the Fixed Accumulation Value by:

- any Net Premiums credited to the Fixed Account.

- any interest credited to the Fixed Account (determined at our
discretion, but guaranteed not to be less than 4%), and

- any amounts transferred from the Variable Account to the Fixed Account
(including amounts transferred to the Fixed Account as security for
Policy loans -- see "Policy Loans").

We will reduce the Fixed Accumulation Value by:

- the Monthly Deduction attributable to the Fixed Account,

- partial withdrawals from the Fixed Account,

- any transfer and partial withdrawal charges attributable to the Fixed
Account, and

- any amounts transferred from the Fixed Account to the Variable Account.

See Appendix B for a detailed discussion of the calculation of Accumulation
Value.

ILLUSTRATION OF POLICY BENEFITS

In order to help you understand how your Policy values would vary over time
under different sets of assumptions, we will provide you with certain
personalized illustrations upon request. These will be based on the age and
insurance risk characteristics of the Insured under your Policy and such factors
as the specified face amount, death benefit option, premium payment amounts and
rates of return (within limits) that you request. You can request such
illustrations at any time.

We have also filed an example of such an illustration as an exhibit to the
registration statement referred to on page 49 of this Prospectus. This form of
illustration is available to you upon request and is incorporated herein by
reference.

SPECIALIZED USES OF THE POLICY

Because the Policy provides for an accumulation of Cash Surrender Value as
well as a Death Benefit, the Policy can be used for various individual and
business financial planning purposes. Purchasing the Policy in part for such
purposes entails certain risks. For example, if the investment performance of
the Sub-Accounts to which Accumulation Value is allocated is poorer than
expected or if sufficient premiums are not paid, the Policy may lapse or may not
accumulate sufficient Accumulation Value or Cash Surrender Value to fund the
purpose for which the Policy was purchased. Withdrawals and Policy loans may
significantly affect current and

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<PAGE> 33

future Accumulation Value, Cash Surrender Value, or Death Benefit proceeds.
Depending upon Sub-Account investment performance and the amount of a Policy
loan, the loan may cause a Policy to lapse. Because the Policy is designed to
provide benefits on a long-term basis, you should consider whether the long-term
nature of the Policy is consistent with the purpose for which it is being
considered. Using a Policy for a specialized purpose may have tax consequences.
See "Federal Tax Matters."

POLICY LAPSE AND REINSTATEMENT

LAPSE. Unlike traditional life insurance policies, the failure to make a
Planned Periodic Payment will not by itself cause the Policy to lapse
(terminate). If the Death Benefit Guarantee is not in effect, the Policy will
lapse only if, as of any Monthly Anniversary, the Cash Surrender Value is less
than the Monthly Deduction due, and a grace period of 61 days expires without a
sufficient payment.

During the early Policy Years, the Cash Surrender Value will generally not
be sufficient to cover the Monthly Deduction, so that premium payments
sufficient to maintain the Death Benefit Guarantee will be required to avoid
lapse. See "Death Benefit Guarantee."

The Policy does not lapse, and the insurance coverage continues, until the
expiration of a 61-day grace period which begins on the date we send you written
notice indicating that the Cash Surrender Value is less than the Monthly
Deduction due. Our written notice will indicate the amount of the payment
required to avoid lapse. If you do not make a sufficient payment within the
grace period, then the Policy will lapse without value.

If the Surviving Joint Insured dies during the grace period, the proceeds
payable will equal the amount of the Death Benefit on the Valuation Date on or
next following the date of the Surviving Joint Insured's death, reduced by any
Loan Amount and any unpaid Monthly Deductions.

If the Death Benefit Guarantee is in effect, we will not lapse the Policy.
See "Death Benefit Guarantee."

REINSTATEMENT. Reinstatement means putting a lapsed Policy back in force.
You may reinstate a lapsed Policy by written request any time within five years
after it has lapsed if it has not been surrendered for its Cash Surrender Value.

To reinstate the Policy and any riders you must submit evidence of
insurability satisfactory to us that each Joint Insured is still insurable, or
if the Policy lapsed after the first death of the Joint Insured, then evidence
of insurability for the Surviving Joint Insured. You must pay a premium large
enough such that the Net Premium is as large as the sum of the Surrender Charge
after reinstatement, plus the Monthly Deductions for the date of reinstatement
and the following Monthly Anniversary.

The Death Benefit Guarantee cannot be reinstated. See "Death Benefit
Guarantee."

SURRENDER BENEFITS

Subject to certain limitations, you may make a total surrender of the
Policy or a partial withdrawal of the Policy's Cash Surrender Value by sending
us a written request. We will determine the amount available for a total
surrender or partial withdrawal at the end of the Valuation Period when we
receive your written request. Generally, we will pay any amounts from the
Variable Account upon total surrender or partial withdrawal within seven days
after we receive your written request. We may postpone payments in certain
circumstances. See "General Provisions -- Postponement of Payments."

TOTAL SURRENDER

You may surrender the Policy at any time for its Cash Surrender Value by
making a written request. The Cash Surrender Value is the Accumulation Value of
the Policy reduced by any Surrender Charge, Loan Amount and unpaid Monthly
Deductions. If the Cash Surrender Value at the time of a surrender exceeds
$25,000, the written request must include a Signature Guarantee.

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<PAGE> 34

PARTIAL WITHDRAWAL

After the first Policy Year, you may also withdraw part of the Cash
Surrender Value by sending us a written request. If the amount being withdrawn
exceeds $25,000, then the written request must include a Signature Guarantee. We
currently allow only one partial withdrawal in any Policy Year. We currently
make a $10.00 charge for each partial withdrawal. We guarantee that this charge
will not exceed $25.00 for each partial withdrawal. See "Deductions and Charges
- -- Partial Withdrawal and Transfer Charges." The amount of any partial
withdrawal must be at least $500 and, during the first 15 Policy Years, may not
be more than 20% of the Cash Surrender Value on the date we receive your written
request. No interest will accrue on amounts represented by uncashed distribution
or redemption checks.

Unless you specify a different allocation, we make partial withdrawals from
the Fixed Account and the Sub-Accounts of the Variable Account on a
proportionate basis based upon the Accumulation Value. We will determine these
proportions at the end of the Valuation Period during which we receive your
written request. For purposes of determining these proportions, we first
subtract any outstanding Loan Amount from the Fixed Accumulation Value.

EFFECT OF PARTIAL WITHDRAWALS. We will reduce the Accumulation Value by the
amount of any partial withdrawal. We will also reduce the Death Benefit by the
amount of the withdrawal, or, if the Death Benefit is based on the corridor
percentage of Accumulation Value (see "Death Benefit -- Death Benefit Options"),
by an amount equal to the corridor percentage times the amount of the partial
withdrawal.

If the Level Amount Option is in effect, we will reduce the Face Amount by
the amount of the partial withdrawal. When increases in the Face Amount have
occurred previously, we reduce the current Face Amount by the amount of the
partial withdrawal in the following order:

(1) The Face Amount provided by the most recent increase;

(2) The next most recent increases successively; and

(3) The Face Amount when the Policy was issued.

(This assumption also applies to requested decreases in Face Amount -- see
"Death Benefits -- Requested Changes in Face Amount.") Thus, partial withdrawals
may affect the way in which the cost of insurance is calculated and the amount
of pure insurance protection under the Policy. See "Death Benefit -- Requested
Changes in Face Amount," "Deductions and Charges -- Monthly Deduction" and
"Death Benefit -- Insurance Protection."

We do not allow a partial withdrawal if the Face Amount after a partial
withdrawal would be less than the Minimum Face Amount (currently $250,000).

If the Variable Amount Option is in effect, a partial withdrawal does not
affect the Face Amount.

A partial withdrawal may also cause the Death Benefit Guarantee to
terminate because we deduct the amount of the partial withdrawal from the total
premiums paid in calculating whether you have paid sufficient premiums in order
to maintain the Death Benefit Guarantee.

Like partial withdrawals, Policy loans are a means of withdrawing funds
from the Policy. See "Policy Loans." A partial withdrawal or a Policy loan may
have tax consequences depending on the circumstances of such withdrawal or loan.
See "Federal Tax Matters -- Tax Status of the Policy."

TRANSFERS

You may transfer all or part of the Variable Accumulation Value between the
Sub-Accounts or to the Fixed Account subject to any conditions the Funds whose
shares are involved may impose. You must make

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<PAGE> 35

your transfer request in writing unless you have completed a telephone transfer
authorization form. You may also direct us to automatically make periodic
transfers under the Dollar Cost Averaging or Portfolio Rebalancing services as
described below.

To transfer all or part of the Variable Accumulation Value from a
Sub-Account, we redeem Accumulation Units and reinvest their values in other
Sub-Accounts, or the Fixed Account, as you direct in your request. We will
effect transfers, and determine all values in connection with transfers, at the
end of the Valuation Period during which we receive your request, except as
otherwise specified for the Dollar Cost Averaging or Portfolio Rebalancing
services. With respect to future Net Premium payments, however, your current
premium allocation will remain in effect unless (1) you have requested the
Portfolio Rebalancing service, or (2) you are transferring all of the Variable
Accumulation Value from the Variable Account to the Fixed Account in exercise of
conversion rights. See "Free Look and Conversion Rights -- Conversion Rights."

Transfers from the Fixed Account to the Variable Account are subject to the
following additional restrictions:

- your transfer request must be postmarked no more than 30 days before or
after the Policy Anniversary in any year, and only one transfer is
permitted during this period,

- the Fixed Accumulation Value after the transfer must be equal to at least
the Loan Amount,

- you may only transfer up to 50% of the Fixed Accumulation Value, less any
Loan Amount, unless the balance, after the transfer, would be less than
$1,000, in which event you may transfer the full Fixed Accumulation
Value, less any Loan Amount, and

- you must transfer at least the lesser of $500 or the total Fixed
Accumulation Value, less any Loan Amount.

See Appendix A. Some of these restrictions may be waived for transfers due to
the Portfolio Rebalancing service.

TELEPHONE/FAX INSTRUCTIONS. You are allowed to enter certain types of
instructions either by telephone or by fax if you complete a telephone/fax
instruction authorization form. If you complete the form, you can enter the
following types of instructions by telephone or fax:

- transfers between Sub-Accounts

- changes of allocations among fund options

By completing the telephone/fax form, you agree that we will not be liable for
any loss, liability, cost or expense when we act in accordance with the
telephone/fax transfer instructions that we receive or are recorded on voice
recording equipment. If we later determine that you did not make a telephone/fax
transfer request or the request was made without your authorization, and loss
results from such unauthorized transfer, you bear the risk of this loss. We
consider any requests made via fax as telephone requests and such requests are
bound by the conditions in the telephone/fax transfer authorization form you
sign. Any fax request should include your name, daytime telephone number, Policy
number and, in the case of transfers, the names of the Sub-Accounts from which
and to which money will be transferred and the allocation percentage. ReliaStar
will employ reasonable procedures to confirm that instructions communicated by
telephone/fax are genuine. If we do not employ such procedures, we may be liable
for any losses due to unauthorized or fraudulent instructions. Such procedures
may include, among others, requiring forms of personal identification prior to
acting upon telephone/fax instructions, providing written confirmation of such
instructions, and/or tape recording telephone instructions.

DOLLAR COST AVERAGING SERVICE. You may request this service if your
Accumulation Value, less any Loan Amount, is at least $5,000. If you request
this service, you direct us to automatically make specific periodic transfers of
a fixed dollar amount from any of the Sub-Accounts to one or more of the
Sub-Accounts or to the Fixed Account. We do not permit transfers from the Fixed
Account under this service. You may request that we make transfers of this type
on a monthly, quarterly, semi-annual, or annual basis. This service is intended
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<PAGE> 36

to allow you to use "Dollar Cost Averaging," a long term investment method which
provides for regular investments over time. We make no guarantees that Dollar
Cost Averaging will result in a profit or protect against loss. You may
discontinue this service at any time by notifying us in writing.

If you are interested in the Dollar Cost Averaging service, you may obtain
a separate application form and information about this service and its
restrictions from us or our registered representative.

We will discontinue the Dollar Cost Averaging service (1) on receipt of any
request to begin a Portfolio Rebalancing service, (2) if the Policy is in the
grace period on any date when Dollar Cost Averaging transfers are scheduled, or
(3) if the specified transfer amount from any Sub-Account is more than the
Accumulation Value in that Sub-Account.

We reserve the right to discontinue, modify, or suspend this service. Any
such modification or discontinuation would not affect any Dollar Cost Averaging
service requests already commenced.

PORTFOLIO REBALANCING SERVICE. You may request this service if your
Accumulation Value, less any Loan Amount, is at least $10,000. If you request
this service, you direct us to automatically make periodic transfers to maintain
your specified percentage allocation of Accumulation Value, less any Loan
Amount, among the Sub-Accounts of the Variable Account and the Fixed Account. We
will also change your allocation of future Net Premium payments to be equal to
this specified percentage allocation. You may request that we make transfers
made under this service on a quarterly, semi-annual, or annual basis. This
service is intended to maintain the allocation you have selected consistent with
your personal objectives.

The Accumulation Value in each Sub-Account of the Variable Account and the
Fixed Account will grow or decline at different rates over time. Portfolio
Rebalancing will periodically transfer Accumulation Values from those accounts
that have increased in value to those accounts that have increased at a slower
rate or declined in value. If all accounts decline in value, it will transfer
Accumulation Values from those that have decreased less in value to those that
have decreased more in value. We make no guarantees that Portfolio Rebalancing
will result in a profit or protect against loss. You may discontinue this
service at any time by notifying us in writing.

If you are interested in the Portfolio Rebalancing service you may obtain a
separate application form and information about this service and its
restrictions from us or our registered representative.

If you are using the Portfolio Rebalancing service, we will discontinue
this service immediately (1) on receipt of any request to change the allocation
of premiums to the Fixed Account and Sub-Account of the Variable Account, (2) on
receipt of any request to begin a Dollar Cost Averaging service, (3) upon
receipt of any request to transfer Accumulation Value among the Fixed Account or
Sub-Accounts, or (4) if the Policy is in the grace period or the Accumulation
Value, less any Loan Amount, is less than $7,500 on any Valuation Date when
Portfolio Rebalancing transfers are scheduled.

We reserve the right to discontinue, modify, or suspend this service. Any
such modification or discontinuation could affect Portfolio Rebalancing services
currently in effect, but only after 30 days notice to affected Policy owners.

TRANSFER LIMITS. We currently do not limit the number of transfers in a
Policy Year. We reserve the right to limit the number of transfers per year to
twelve. All transfers that are effective on the same Valuation Date will be
treated as one transfer transaction. Transfers made due to the Dollar Cost
Averaging or Portfolio Rebalancing services do not currently count toward the
limit on number of transfers.

TRANSFER CHARGES. We currently charge a $25 fee for each transfer in excess
of 24 per Policy Year. We reserve the right to assess a maximum charge of $25
for any transfer in excess of 12 per Policy Year. See "Deductions and
Charges -- Partial Withdrawal and Transfer Charges." We will not impose any
charge for exercising the conversion right or for transfers occurring as the
result of Policy Loans, Dollar Cost Averaging, Portfolio Rebalancing or
automatic withdrawals. All transfers are subject to any charges and conditions
imposed by the Fund whose shares are involved. We will treat all transfers that
are effective on the same Valuation Date as one transfer transaction for the
purpose of assessing any charge.

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<PAGE> 37

POLICY LOANS

GENERAL. While the Policy is in force, you may borrow money from us at any
time after the first Policy Year using the Policy as security for the loan. The
maximum amount you may borrow at any time is equal to the Loan Value of the
Policy. The Loan Value of the Policy is equal to 100% of the Cash Value less the
existing Loan Amount. Each Policy loan must be at least $500.

You may request a loan in writing or by telephoning us on any Valuation
Date. Any loan request in excess of $25,000 will require a Signature Guarantee.
Telephone loan requests cannot exceed $10,000. We currently do not require an
election form to make telephone loan requests. We will employ reasonable
procedures to confirm that loan requests made by telephone are genuine. In the
event we do not employ such procedures, we may be liable for any losses due to
unauthorized or fraudulent instructions. Such procedures may include, among
others, requiring forms of personal identification prior to acting upon
telephone instructions, providing written confirmations of such instructions
and/or tape recording telephone instructions.

Policy loans have priority over the claims of any subsequent assignee or
other person. You may repay a Policy loan in whole or in part at any time.

We will normally pay the loan proceeds to you within seven days after we
receive your request. We may postpone payment of loan proceeds to you under
certain circumstances. See "General Provisions -- Postponement of Payments."

Payments made by you generally will be treated as premium payments, rather
than Policy loan repayments, unless you indicate that the payment should be
treated otherwise or unless we decide, at our discretion, to apply the payment
as a Policy loan repayment. As a result, unless you indicate that a payment is a
loan repayment, all payments you make to the Policy will generally be subject to
the Premium Expense Charge. See "Deductions and Charges -- Premium Expense
Charge."

IMMEDIATE EFFECT OF POLICY LOANS. When we make a Policy loan, we will
segregate an amount equal to the Policy loan (which includes interest payable in
advance) within the Accumulation Value of your Policy and hold it in the Fixed
Account as security for the loan. As described below, you will pay interest to
us on the Policy loan, but we will also credit interest to you on the amount
held in the Fixed Account as security for the loan. We will include the amount
segregated in the Fixed Account as security for the Policy loan as part of the
Fixed Accumulation Value under the Policy, but we will credit that amount with
interest on a basis different from other amounts in the Fixed Account.

Unless you specify differently, amounts held as security for the Policy
loan will come proportionately from the Fixed Accumulation Value and the
Variable Accumulation Value (with the proportions being determined as described
below). We will transfer assets equal to the portion of the Policy loan coming
from the Variable Accumulation Value from the Sub-Accounts of the Variable
Account to the Fixed Account, THEREBY REDUCING THE ACCUMULATION VALUE HELD IN
THE SUB-ACCOUNTS. We do not treat these transfers as transfers for the purposes
of assessing the transfer charge or calculating the limit on the number of
transfers.

EFFECT ON INVESTMENT PERFORMANCE. Amounts coming from the Variable Account
as security for Policy loans will no longer participate in the investment
performance of the Variable Account. We will credit all amounts held in the
Fixed Account as security for Policy loans (that is, the Loan Amount) with
interest at an effective annual rate equal to 4.00%. WE WILL NOT CREDIT
ADDITIONAL INTEREST TO THESE AMOUNTS. On the Policy Anniversary, we will
allocate any interest credited on these amounts to the Fixed Account and the
Variable Account according to the premium allocation then in effect. See
"Payment and Allocation of Premiums -- Allocating Premiums."

Although you may repay Policy loans in whole or in part at any time, Policy
loans will permanently affect the Policy's potential Accumulation Value. As a
result, to the extent that the Death Benefit depends upon the Accumulation Value
(see "Death Benefit -- Death Benefit Options"), Policy loans will also affect
the Death Benefit under the Policy. This effect could be favorable or
unfavorable depending on whether the investment performance of the assets
allocated to the Sub-Account(s) is less than or greater than the interest being

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<PAGE> 38

credited on the assets transferred to the Fixed Account while the loan is
outstanding. Compared to a Policy under which no loan is made, values under the
Policy will be lower when such interest credited is less than the investment
performance of assets held in the Sub-Account(s).

EFFECT ON POLICY COVERAGE. We will notify you if, on any Monthly
Anniversary, the Loan Amount is greater than the Accumulation Value, less the
then applicable Surrender Charge. If we do not receive sufficient payment within
61 days from the date we send notice to you, the Policy will lapse and terminate
without value. Our written notice to you will indicate the amount of the payment
required to avoid lapse. The Policy may, however, later be reinstated. See
"Policy Lapse and Reinstatement."

A Policy loan may also cause termination of the Death Benefit Guarantee,
because we deduct the Loan Amount from the total premiums paid in calculating
whether sufficient premiums have been paid in order to maintain the Death
Benefit Guarantee. See "Death Benefit Guarantee."

We will reduce proceeds payable upon the death of the Surviving Joint
Insured by any Loan Amount.

INTEREST. The interest rate charged on Policy loans will be an annual rate
of 5.66%, payable in advance. After the tenth Policy Year, we will charge
interest at an annual rate of 3.85%, payable in advance, on that portion of your
Loan Amount that is not in excess of (1) the Accumulation Value, less (2) the
total of all premiums paid and all partial withdrawals. This portion of your
loan amount is called a preferred loan. We will charge interest on any excess of
this amount at the annual rate of 5.66%, payable in advance.

Interest is payable in advance to the next Policy Anniversary when any
Policy loan is made and at the beginning of each Policy Year thereafter. If you
do not pay the interest when due, we will deduct it from the Cash Surrender
Value as an additional Policy loan (see "Immediate Effect of Policy Loans"
above) and we will add it to the existing Loan Amount.

We will refund any interest that we have not earned to you upon lapse or
surrender of the Policy or repayment of the Policy Loan.

REPAYMENT OF LOAN AMOUNT. You may repay the Loan Amount any time. If not
repaid, we will deduct the Loan Amount from any amount payable under the Policy.
Unless you provide us with notice to the contrary, we generally will treat any
payments on the Policy as premium payments. Such premium payments are subject to
the Premium Expense Charge. Any repayments on the Loan Amount will result in
amounts being reallocated from the Fixed Account and to the Sub-Accounts of the
Variable Account according to your current premium allocation.

TAX CONSIDERATIONS. A Policy loan, may have tax consequences depending on
the circumstances of the loan. See "Federal Tax Matters -- Tax Status of the
Policy."

FREE LOOK AND CONVERSION RIGHTS

FREE LOOK RIGHTS

The Policy provides for a "free look" period after application for and
issuance of the Policy. The Policy also provides for a "free look" period after
any requested increase in the Face Amount.

During the free look period after application for and issuance of the
Policy, you have a right to return the Policy for cancellation. You must return
the Policy to your agent or us and ask us to cancel the Policy by midnight of
the 10th day after receiving the Policy. Upon requesting cancellation of the
Policy, you will receive a refund of premiums paid for the Policy.

During the free look period after a requested increase in Face Amount, you
have the right to cancel the increase. You must request cancellation of the
increase by midnight of the 10th day after receiving the new Policy Data Page
reflecting the increase. Upon requesting cancellation of the increase, you will
receive a refund, if you so request, or otherwise a restoration to the Policy's
Accumulation Value (allocated among the Fixed Account and the Sub-Accounts of
the Variable Account as if it were a Net Premium payment), in an

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amount equal to all Monthly Deductions attributable to the increase in Face
Amount, including rider cost arising from the increase.

CONVERSION RIGHTS

During the first two Policy Years and the first two years following a
requested increase in Face Amount, we provide you with an option to convert the
Policy or any requested increase in Face Amount to a life insurance policy under
which the benefits do not vary with the investment experience of the Variable
Account. This option is made available by permitting you to transfer all or a
part of your Variable Accumulation Value to the Fixed Account.

GENERAL OPTION. You may exercise your conversion right by transferring all
or any part of your Variable Accumulation Value to the Fixed Account. If, at any
time during the first two Policy Years or the first two years following a
requested increase in Face Amount, you request transfer from the Variable
Account to the Fixed Account and indicate that you are making the transfer in
exercise of your conversion right, we will not assess any transfer charge on the
transfer, and will not count against the limit on the number of transfers. At
the time of such transfer, there is no effect on the Policy's Death Benefit,
Face Amount, net amount at risk, Rate Class(es) or issue age -- only the method
of funding the Accumulation Value under the Policy will be affected. See "Death
Benefit", "Accumulation Value" and Appendix A, "The Fixed Account."

If you transfer all of the Variable Accumulation Value from the Variable
Account to the Fixed Account and indicate that you are making this transfer in
exercise of your Conversion Right, we will automatically credit all future
premium payments on the Policy to the Fixed Account unless you request a
different allocation.

ADDITIONAL INFORMATION ON THE INVESTMENTS OF THE VARIABLE ACCOUNT

INVESTMENT LIMITS

The Fund shares may be available to fund benefits under both variable
annuity and variable life contracts and policies. This could result in an
irreconcilable conflict between the interests of the holders of the different
types of variable contracts. The Funds have advised us that they will monitor
for such conflicts and will promptly provide us with information regarding any
such conflicts should they arise or become imminent, and we will promptly advise
the Funds if we become aware of any such conflicts. If any such material
irreconcilable conflict arises, we will arrange to eliminate and remedy such
conflict up to and including establishing a new management investment company
and segregating the assets underlying the variable policies and contracts at no
cost to the holders of the policies and contracts.

There also is a possibility that one fund might become liable for any
misstatement, inaccuracy or incomplete disclosure in another Fund's prospectus.

The Funds distribute dividends and capital gains. However, we automatically
reinvest distributions in additional Fund shares, at net asset value. The
Sub-Account receives the distributions which are then reflected in the Unit
Value of that Sub-Account. See "Accumulation Value."

ReliaStar has entered into service arrangements with the managers or
distributors of certain of the Funds. Under these arrangements, ReliaStar or its
affiliates may receive compensation from affiliates of the Funds. This
compensation is for providing administrative, recordkeeping, distribution and
other services to the Funds or their affiliates. Such compensation is paid based
upon assets invested in the particular Funds, or based on the aggregated net
asset goals. Payments of such amounts by an affiliate or affiliates of the Funds
do not increase the fees paid by the Funds or their shareholders. The percentage
paid may vary from one Fund to another.

ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS

We reserve the right, subject to compliance with applicable law, to make
additions to, deletions from, or substitutions for the shares that are held by
the Variable Account or that the Variable Account may purchase.

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<PAGE> 40

- We reserve the right to establish additional Sub-Accounts of the
Variable Account, each of which would invest in a new Fund, or in shares
of another investment company, with a specified investment objective. We
may establish new Sub-Accounts when, in our sole discretion, marketing
needs or investment conditions warrant, and we will make any new
Sub-Accounts available to existing Policy owners on a basis we
determine.

- We may eliminate one or more Sub-Accounts, or prohibit additional new
premium or transfers into a Sub-Account, if, in our sole discretion,
marketing, tax, regulatory requirements or investment conditions
warrant.

- We reserve the right to eliminate the shares of any of the Funds and to
substitute shares of another Fund or of another open-end, registered
investment company. We will not substitute any shares attributable to
your interest in a Sub-Account of the Variable Account without notice
and prior approval of the SEC, to the extent required by the Investment
Company Act of 1940 or other applicable law.

Nothing contained herein shall prevent the Variable Account from:

- Purchasing other securities of other Funds or classes of polices,

- Permitting a conversion between Funds or classes of policies on the
basis of requests made by Policy owners, or

- Substituting the shares of one Fund for shares of another Fund in the
event of a merger of Funds or similar transaction.

In the event of any such substitution, deletion or change, we may make
appropriate changes in this and other polices to reflect such substitution,
deletion or change. If you allocated all or a portion of your investments to any
of the current funds that are being substituted for or deleted, you may transfer
the portion of the Accumulation Value affected without paying a transfer charge.

If we deem it to be in the best interests of persons having voting rights
under the Policies, we may:

- operate the Variable Account as a management company under the 1940 Act,

- deregister the Variable Account under the 1940 Act in the event such
registration is no longer required, or

- combine the Variable Account with our other separate accounts.

VOTING RIGHTS

You have the right to instruct us how to vote the Fund shares attributable
to the Policy at regular meetings and special meetings of the Funds. We will
vote the Fund shares held in Sub-Accounts according to the instructions
received, as long as:

- The Variable Account is registered as a unit investment trust under the
Investment Company Act of 1940; and

- The Variable Account's assets are invested in Fund shares.

If we determine that, because of applicable law or regulation, we do not
have to vote according to the voting instructions received, we will vote the
Fund shares at our discretion.

All persons entitled to voting rights and the number of votes they may cast
are determined as of a record date, selected by us, not more than 90 days before
the meeting of the Fund. All Fund proxy materials and appropriate forms used to
give voting instructions will be sent to persons having voting interests.

We will vote any Fund shares held in the Variable Account for which we do
not receive timely voting instructions, or which are not attributable to Policy
owners, in proportion to the instructions received from all Policy owners having
a voting interest in the Fund. Any Fund shares held by us or any of our
affiliates in

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<PAGE> 41

general accounts will, for voting purposes, be allocated to all separate
accounts having voting interests in the Fund in proportion to each account's
voting interest in the respective Fund, and will be voted in the same manner as
are the respective account's votes.

Owning the Policy does not give you the right to vote at meetings of our
stockholders.

DISREGARD OF VOTING INSTRUCTIONS. We may, when required by state insurance
regulatory authorities, disregard voting instructions if the instructions
require that the shares be voted so as to cause a change in the
subclassification or investment objective of any Fund or to approve or
disapprove an investment advisory contract for any Fund. In addition, we may
disregard voting instructions in favor of changes initiated by a Policy owner in
the investment policy or the investment adviser of any Fund if we reasonably
disapprove of such changes. We would disapprove a change only if the proposed
change is contrary to state law or prohibited by state regulatory authorities,
or we determine that the change would have an adverse effect on the Variable
Account in that the proposed investment policy for a Fund may result in
speculative or unsound investments. If we do disregard voting instructions, we
will include a summary of that action and the reasons for such action in the
next annual report to owners.

GENERAL PROVISIONS

OWNERSHIP

While the Surviving Joint Insured is alive, subject to the Policy's
provisions you may:

- Change the amount and frequency of premium payments.

- Change the allocation of premiums.

- Make transfers between accounts.

- Surrender the Policy for cash.

- Make a partial withdrawal for cash.

- Receive a cash loan.

- Assign the Policy as collateral.

- Change the beneficiary.

- Transfer ownership of the Policy.

- Enjoy any other rights the Policy allows.

While both Joint Insureds are alive, subject to the Policy's provisions,
you may:

- Change the Death Benefit Option.

- Change the Face Amount.

PROCEEDS

At the Surviving Joint Insured's death, the proceeds payable include the
Death Benefit then in force:

- Plus any additional amounts provided by rider on the life of the
Surviving Joint Insured;

- Plus any Policy loan interest that we have collected but not earned;

- Minus any Loan Amount; and

- Minus any unpaid Monthly Deductions.

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<PAGE> 42

BENEFICIARY

You may name one or more beneficiaries on the application when you apply
for the Policy. You may later change beneficiaries by written request. You may
also name a beneficiary whom you cannot change without his or her consent
(irrevocable beneficiary). If no beneficiary is surviving when the Surviving
Joint Insured dies, we will pay the Death Benefit to you, if surviving, or
otherwise to your estate.

POSTPONEMENT OF PAYMENTS

We generally make payments from the Variable Account for Death Benefits,
cash surrender, partial withdrawal, or loans within seven days after we receive
all the documents required for the payments.

We may, however, delay making a payment when we are not able to determine
the Variable Accumulation Value because (1) the New York Stock Exchange is
closed, other than customary weekend or holiday closings, or the SEC restricts
trading on the New York Stock Exchange , (2) the SEC by order permits
postponement for the protection of Policyholders, or (3) the SEC determines that
an emergency exists which makes disposing of securities not reasonably
practicable, or which makes it not reasonably practicable to determine the value
of the Variable Account's net assets. We may also postpone transfers and
allocations to and from any Sub-Account of the Variable Account under these
circumstances.

We may delay any of the payments that we make from the Fixed Account for up
to six months from the date we receive the documents required. We will pay
interest at an effective annual rate of not less than 3.50% if we delay payment
more than 10 days. We will not credit any additional interest to any delayed
payments. The time a payment from the Fixed Account may be delayed and the rate
of interest paid on such amounts may vary among states.

SETTLEMENT OPTIONS

Settlement Options are ways you can choose to have the Policy's proceeds
paid. These options apply to proceeds paid:

- At the Surviving Joint Insured's death.

- On total surrender of the Policy.

We pay the proceeds to one or more payees. We may pay the proceeds in a
lump sum or we may apply them to one of the following Settlement Options. You
may request that we use a combination of options. You must apply at least $2,500
to any Option for each payee under that option. Under an installment Option,
each payment must be at least $25. We may adjust the interval between payments
to make each payment at least $25.

Proceeds applied to any Option no longer earn interest at the rate applied
to the Fixed Account or participate in the investment performance of the Funds.

Option 1 -- Proceeds are left with us to earn interest. Withdrawals and any
changes are subject to our approval.

Option 2 -- Proceeds and interest are paid in equal installments of a
specified amount until the proceeds and interest are all paid.

Option 3 -- Proceeds and interest are paid in equal installments for a
specified period until the proceeds and interest are all paid.

Option 4 -- The proceeds provide an annuity payment with a specified number
of months "certain." The payments are continued for the life of
the primary payee. If the primary payee dies before the certain
period is over, the remaining payments are paid to a contingent
payee.

Option 5 -- The proceeds provide a life income for two payees. When one
payee dies, the surviving payee receives two-thirds of the
amount of the joint monthly payment for life.

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Option 6 -- The proceeds are used to provide an annuity based on the rates
in effect when the proceeds are applied. We do not apply this
Option if a similar option would be more favorable to the payee
at that time.

INTEREST ON SETTLEMENT OPTIONS. We base the interest rate for proceeds
applied under Options 1 and 2 on the interest rate we declare on funds that we
consider to be in the same classification based on the Option, restrictions on
withdrawal, and other factors. The interest rate will never be less than an
effective annual rate of 3.50%.

In determining amounts we pay under Options 3 and 4, we assume interest at
an effective annual rate of 3.50%. Also, for Option 3 and "certain" periods
under Option 4, we credit any excess interest we may declare on funds that we
consider to be in the same classification based on the Option, restrictions on
withdrawal, and other factors.

INCONTESTABILITY

After the Policy has been in force during both Joint Insured's lifetime for
two years from the Policy's Issue Date, we cannot claim the Policy is void or
refuse to pay any proceeds unless the Policy has lapsed.

If you make a Face Amount increase or a premium payment which requires
proof of insurability, the corresponding Death Benefit increase has its own
two-year contestable period measured from the date of the increase.

If the Policy is reinstated, we measure the contestable period from the
date of reinstatement with respect to statements made on the application for
reinstatement.

MISSTATEMENT OF AGE AND SEX

If any Joint Insured's age or sex or both are misstated, the Death Benefit
will be the amount that the most recent cost of insurance would purchase using
the current cost of insurance rate for the correct age and sex.

SUICIDE

If any Joint Insured commits suicide within two years of the Policy's Issue
Date, we do not pay the Death Benefit. Instead, we refund all premiums paid for
the Policy and any attached riders, minus any Loan Amounts and partial
withdrawals.

If you make a Face Amount increase or a premium payment which requires
proof of insurability, the corresponding Death Benefit increase has its own
two-year suicide limitation for the proceeds associated with that increase. If
any Joint Insured commits suicide within two years of the effective date of the
increase, we pay the Death Benefit prior to the increase and refund the cost of
insurance for that increase.

TERMINATION

The Policy terminates when any of the following occurs:

- The Policy lapses. See "Policy Lapse and Reinstatement."

- The Surviving Joint Insured dies.

- You surrender the Policy for its Cash Surrender Value.

- We amend the Policy according to the amendment provision described below
and you do not accept the amendment.

- The Policy terminates when the younger Joint Insured reaches age 100.

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AMENDMENT

We reserve the right to amend the Policy in order to include any future
changes relating to the following:

- Any SEC rulings and regulations.

- The Policy's qualification for treatment as a life insurance policy
under the following:

-- The Code.

-- Internal Revenue Service rulings and regulations.

-- Any requirements imposed by the Internal Revenue Service.

REPORTS

ANNUAL STATEMENT. We will send you an Annual Statement once each year,
showing the Face Amount, Death Benefit, Accumulation Value, Cash Surrender
Value, Loan Amount, premiums paid, Planned Periodic Premiums, interest credits,
partial withdrawals, transfers, and charges since the last statement.

Additional statements are available upon request. We may make a charge not
to exceed $50 for each additional Annual Statement you request.

PROJECTION REPORT. After the first Policy Year, you may request a report
projecting future results based on the Death Benefit Option you specify, the
Planned Periodic Premiums you specify, the Accumulation Value of your Policy at
the end of the prior Policy Year. We may make a charge not to exceed $50 for
each Projection Report you request after the first report in any Policy Year.

OTHER REPORTS. The Company will mail to you, at your last known address of
record at least annually a report containing such information as may be required
by any applicable law.

To reduce expenses, only one copy of most financial reports and
prospectuses, including reports and prospectuses for the Investment Funds, will
be mailed to your household, even if you or other persons in your household have
more than one contract issued by ReliaStar Life Insurance Company of New York or
an affiliate. Call 1-800-456-6965 if you need additional copies of financial
reports, prospectuses, or annual and semi-annual reports, of if you would like
to receive one copy for each contract in all future mailings.

DIVIDENDS

The Policy does not entitle you to participate in our surplus. We do not
pay you dividends under the Policy.

The Sub-Account receives any dividends paid by the related Fund. Any such
dividend is credited to you through the calculation of the Sub-Account's daily
Unit Value.

COLLATERAL ASSIGNMENT

You may assign the benefits of the Policy as collateral for a debt. This
limits your rights to the Cash Surrender Value and the beneficiary's rights to
the proceeds. An assignment is not binding on us until we receive written
notice.

OPTIONAL INSURANCE BENEFITS

The Policy can include additional benefits, in the form of riders to the
Policy, if our requirements for issuing such benefits are met. We currently
offer the following benefit riders:

POLICY SPLIT OPTION RIDER (PSO). Allows the Policy owner to split the
Policy into two individual permanent life insurance policies in the event of a
divorce of the Joint Insureds, dissolution of a business partnership of the
Joint Insureds, or if there is a change in the federal estate tax laws that
would eliminate the unlimited marital deduction or reduce by at least 50% the
estate taxes payable at death. Evidence of insurability on each Joint Insured
may be required to exercise this option. There is no cost for this rider.
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<PAGE> 45

SURVIVORSHIP TERM RIDER (STR). Provides a level term insurance benefit
payable on the death of the Surviving Joint Insured if death occurs prior to age
80 of the younger Joint Insured. The current cost of insurance rates for the
rider are expected to be the same as for the base Policy. The Monthly Amount
Charge per $1,000 for the rider is expected to be lower than for the base
Policy. In addition, the base Policy's Surrender Charge does not apply to
coverage under the rider. However, the Survivorship Term Rider will cause the
Death Benefit Guarantee Period of the base Policy to be shortened.

By Company practice, if the base Death Benefit is equal to the Accumulation
Value multiplied by the corridor percentage (see "Death Benefit"), or within 90
days prior to the STR expiration date, the STR amount may be replaced with base
coverage without providing evidence of insurability. The entire rider amount
must be replaced if any amount is replaced. Surrender Charges will not apply to
the new additional base coverage. Monthly Amount Charge rates on the new
additional base coverage will be no higher than the Monthly Amount Charge rates
on the STR in the year prior to replacement. Cost of insurance rates on the new
additional base coverage will be equal to the cost of insurance rates for the
base coverage, based on the rate class and duration of the STR coverage.

There may be times in which it will be to your economic advantage to
include a significant portion of your insurance coverage under a term rider. In
some other circumstances, it may be in your interest to obtain a Policy without
term rider coverage. These circumstances depend on many factors, including the
premium levels and amount and duration of coverage you choose, as well as the
age, sex, and premium class of each Joint Insured.

FOUR YEAR TERM RIDER (FTR). Provides a four year, level term benefit if the
Surviving Joint Insured dies during the first four Policy Years.

FEDERAL TAX MATTERS

INTRODUCTION

The following summary provides a general description of the Federal income
tax considerations associated with the Policy and does not purport to be
complete or to cover all tax situations. This discussion is not intended as tax
advice. Counsel or other competent tax advisors should be consulted for more
complete information. This discussion is based upon the Company's understanding
of the present Federal income tax laws. No representation is made as to the
likelihood of continuation of the present Federal income tax laws or as to how
they may be interpreted by the Internal Revenue Service (the "IRS").

Any qualified plan contemplating the purchase of a life policy should
consult a tax advisor.

TAX STATUS OF THE POLICY

In order to qualify as a life insurance contract for Federal income tax
purposes and to receive the tax treatment normally accorded life insurance
contracts under Federal tax law, a Policy must satisfy certain requirements
which are set forth in the Internal Revenue Code. Guidance as to how these
requirements are to be applied is limited. Nevertheless, the Company believes
that a Policy issued on the basis of a standard risk class should satisfy the
applicable requirements. There is less guidance with respect to Policies issued
on a substandard basis (i.e., a premium class involving higher than standard
mortality risk), and it is not clear whether such a Policy would satisfy the
applicable requirements, particularly if the owner pays the full amount of
premiums permitted under the Policy. If it is subsequently determined that a
Policy does not satisfy the applicable requirements, the Company may take
appropriate steps to bring the Policy into compliance with such requirements and
reserves the right to restrict Policy transactions in order to do so.

In certain circumstances, owners of variable life insurance contracts have
been considered for Federal income tax purposes to be the owners of the assets
of the variable account supporting their policies due to their ability to
exercise investment control over these assets. Where this is the case, the
Policy owners have been currently taxed on income and gains attributable to the
variable account assets. There is little guidance in this area, and some
features of the Policies, such as the flexibility of an owner to allocate
premium payments and

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<PAGE> 46

Policy Accumulation Values, have not been explicitly addressed in published
rulings. While the Company believes that the Policies do not give owners
investment control over Variable Account assets, the Company reserves the right
to modify the Policies as necessary to prevent an owner from being treated as
the owner of the Variable Account assets supporting the Policy.

In addition, the Code requires that the investments of the Variable Account
be "adequately diversified" in order for the Policies to be treated as life
insurance contracts for Federal income tax purposes. It is intended that the
Variable Account, through the Funds, will satisfy these diversification
requirements.

The following discussion assumes that the Policy will qualify as a life
insurance contract for Federal income tax purposes.

TAX TREATMENT OF POLICY BENEFITS

IN GENERAL. The Company believes that the Death Benefit under a Policy
should be excludible from the gross income of the Beneficiary. Federal, state
and local transfer, and other tax consequences of ownership or receipt of Policy
proceeds depend on the circumstances of each owner or beneficiary. A tax advisor
should be consulted on these consequences.

Generally, the owner will not be deemed to be in constructive receipt of
the Policy Accumulation Value until there is a distribution. When distributions
from a Policy occur, including payments arising from any maturity benefits, or
when loans are taken out from or secured by (e.g., by assignment) a Policy, the
tax consequences depend on whether the Policy is classified as a "Modified
Endowment Contract."

MODIFIED ENDOWMENT CONTRACTS. Under the Internal Revenue Code, certain life
insurance contracts are classified as "Modified Endowment Contracts," with less
favorable tax treatment than other life insurance contracts. Due to the
flexibility of the Policies as to premiums and benefits, the individual
circumstances of each Policy will determine whether it is classified as a
Modified Endowment Contract. The rules are too complex to be summarized here,
but generally depend on the amount of premiums paid during the first seven
Policy Years. Certain changes in a Policy after it is issued could also cause it
to be classified as a Modified Endowment Contract. A current or prospective
owner should consult with a competent advisor to determine whether a Policy
transaction will cause the Policy to be classified as a Modified Endowment
Contract. The Company will monitor the Policies, however, and will attempt to
notify an owner on a timely basis if it believes that such owner's Policy is in
jeopardy of becoming a Modified Endowment Contract.

DISTRIBUTIONS FROM MODIFIED ENDOWMENT CONTRACTS. Policies classified as
Modified Endowment Contracts are subject to the following tax rules:

(1) All distributions, including distributions upon surrender and
withdrawals, will be treated as ordinary income subject to tax up to
an amount equal to the excess (if any) of the unloaned Policy
Accumulation Value (Cash Surrender Value for surrenders) immediately
before the distribution plus prior distributions over the owner's
total investment in the Policy at that time. "Total investment in the
Policy" means the aggregate amount of any premiums or other
considerations paid for a Policy, plus any previously taxed
distributions, minus any credited dividends.

(2) Loans taken from or secured by (e.g., by assignment) such a Policy are
treated as distributions and taxed accordingly.

(3) A 10 percent additional income tax is imposed on the amount included
in income except where distribution or loan is made when the owner has
attained age 59 1/2 or is disabled, or where the distribution is part
of a series of substantially equal periodic payments for the life (or
life expectancy) of the owner or the joint lives (or joint life
expectancies) of the owner and the owner's beneficiary or designated
beneficiary.

DISTRIBUTIONS FROM POLICIES THAT ARE NOT MODIFIED ENDOWMENT
CONTRACTS. Distributions from a Policy that is not a Modified Endowment Contract
are generally treated first as a recovery of an owner's investment in the Policy
and only after the recovery of all investments in the Policy as taxable income.
However, certain distributions which must be made in order to enable the Policy
to continue to qualify as a life insurance
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<PAGE> 47

contract for Federal income tax purposes if Policy benefits are reduced during
the first 15 Policy Years may be treated in whole or in part as ordinary income
subject to tax.

Loans from or secured by a Policy that is not a Modified Endowment Contract
are not treated as distributions, except that upon a lapse of a Policy any
outstanding Policy loan will be deemed to be distributed.

Finally, neither distributions from nor loans from or secured by a Policy
that is not a modified Endowment Contract are subject to the 10 percent
additional tax.

POLICY LOANS. In general, interest on a loan from a Policy will not be
deductible. Before taking out a Policy loan, an owner should consult a tax
advisor as to the tax consequences.

MULTIPLE POLICIES. All Modified Endowment Contracts that we issue (or our
affiliates issue) to the same owner during any calendar year are treated as one
Modified Endowment Contract for purposes of determining the amount includible in
the owner's income when a taxable distribution occurs.

TAXATION OF RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

We do not initially expect to incur any income tax burden upon the earnings
or the realized capital gains attributable to the Variable Account. Based on
this expectation, we currently make no charge to the Variable Account for
Federal income taxes which may be attributable to the Account. If, however, we
determine that we may incur such tax burden, we may assess a charge for such
burden from the Variable Account.

We may also incur state and local taxes, in addition to premium taxes, in
several states. At present these taxes are not significant. If there is a
material change in state or local tax laws, charges for such taxes, if any,
attributable to the Variable Account, may be made.

POSSIBLE CHANGES IN TAXATION

Although the likelihood of legislative changes is uncertain, there is
always the possibility that the tax treatment of the Policy could change by
legislation or other means. Moreover, it is also possible that any change could
be retroactive (that is, effective prior to the date of the change). You should
consult a tax advisor with respect to legislative developments and their effect
on the Policy.

OTHER CONSIDERATIONS

The foregoing discussion is general and is not intended as tax advice. Any
person concerned about these tax implications should consult a competent tax
advisor. This discussion is based on our understanding of the present Federal
income tax laws as they are currently interpreted by the IRS. We make no
representation as to the likelihood of continuation of these current laws and
interpretations. In addition, this discussion is not exhaustive and that special
rules not described in this Prospectus may be applicable in certain situations.
Moreover, we have made no attempt to consider any applicable state or other tax
laws.

DISTRIBUTION OF THE POLICIES

We intend to sell the Policies in all jurisdictions where we are licensed.

The Policies will be distributed by the general distributor, Washington
Square Securities, Inc. (WSSI), a Minnesota corporation, which is our affiliate.
WSSI is a securities broker-dealer registered with the SEC and is a member of
the National Association of Securities Dealers, Inc. It is primarily a mutual
funds dealer and has dealer agreements under which it markets shares of many
mutual funds. It also markets limited partnerships and other tax-sheltered or
tax-deferred investments, and acts as general distributor (principal
underwriter) for variable annuity products issued by us. The Policies may also
be sold through other broker-dealers authorized by WSSI and applicable law to do
so. Registered representatives of such broker-dealers may be paid on a different
basis than described below.

The Policies will be sold by licensed insurance agents who are also
registered representatives of broker-dealers registered with the SEC under the
Securities Exchange Act of 1934 who are members of the NASD.

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<PAGE> 48

Registered representatives who sell the Policies will receive commissions based
on a commission schedule. In the first Policy Year, commissions generally will
be no more than 55% of the premiums paid up to the annualized Minimum Monthly
Premium, plus 8% of additional premiums. In subsequent Policy Years 2 through
10, commissions generally will be no more than 8% of premiums paid in that year.
We will pay corresponding commissions upon a requested increase in Face Amount.
In addition, we may pay a commission of .10% of the average monthly Accumulation
Value during each Policy Year. Registered representatives may be eligible to
receive certain overrides and other benefits which may be based on the amount of
earned commissions.

For all Policies which use the ReliaStar Life Insurance Company of New York
Variable Life Separate Account I, the aggregate amount paid to WSSI under our
Distribution Agreement was $1,345,813 in 1999 and $837,517 in 1998.

MANAGEMENT

The following is a list of current directors and executive officers of the
Company, their principal occupation and business experience.

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<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------
<S> <C>
James R. Gelder(2) President and Chief Executive Officer of ReliaStar Life
Insurance Company of New York since 1999; Executive Vice
President of ReliaStar Life Insurance Company of New York
from 1998 to 1998; President and Chief Executive Officer of
Security-Connecticut Life Insurance Company since 1998;
Executive Vice President and Chief Operating Officer of
Security-Connecticut Life Insurance Company from 1997 to
1998; Vice President of ReliaStar Life Insurance Company
from 1994; Director and Officer of various subsidiaries of
ReliaStar Financial Corp.
Ambassador Ulric Haynes,
Jr.(1) Dean of the School of Business and Executive Dean for
University International Relations of Hofstra University
since 1991; Director of DYNAX Solutions, Inc. from 2000 to
present; Director of INNCOM International Inc. from 1999 to
present; Director of Pall Corporation from 1994 to present;
Director of HSBC USA Inc. (formerly Marine Midland Bank)
from 1969 to present.
Wayne R. Huneke(2) Senior Executive Vice President of ReliaStar Financial Corp.
and ReliaStar Life Insurance Company since 1999; Senior Vice
President of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1994 to 1999; Chief Financial Officer
and Treasurer of ReliaStar Financial Corp. and ReliaStar
Life Insurance Company from 1994 to 1997; Director and
Officer of various subsidiaries of ReliaStar Financial Corp.
Mark S. Jordahl(2) President and Chief Executive Officer of ReliaStar
Investment Research, Inc. since 1998; Senior Vice President
and Chief Investment Officer of ReliaStar Life Insurance
Company and ReliaStar Financial Corp. since 1998; Senior
Vice President of Security-Connecticut Life Insurance
Company since 1998; Vice President of ReliaStar Life
Insurance Company and ReliaStar Financial Corp from 1987 to
1998; Director and Officer of various subsidiaries of
ReliaStar Financial Corp.
Kenneth U. Kuk(2) Executive Vice President of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company since 1999; Senior Vice
President of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1996 to 1999; Vice President of
ReliaStar Life Insurance Company from 1996 to 1998; Vice
President of ReliaStar Financial Corp. from 1991 to 1998;
President of Washington Square Advisers, Inc. from 1995 to
1998; Chairman of ReliaStar Mortgage Corporation from 1988
to 1998; Director and Officer of various subsidiaries of
ReliaStar Financial Corp.
James R. Miller(2) Senior Vice President, Chief Financial Officer and Treasurer
of ReliaStar Financial Corp. and ReliaStar Life insurance
Company since 1997; Executive Vice President and Chief
Operating Officer of Northern Life Insurance Company from
1992 to 1997; Vice President of ReliaStar Financial Corp.
from 1985 to 1992; Director and Officer of various
subsidiaries of ReliaStar Financial Corp.
Fioravante G. Perrotta(1) Retired 1996; Formerly Senior Partner of Rogers & Wells (New
York law firm) since 1970.
Roger D. Roenfeldt(3) Executive Vice President and Chief Operating Officer of
ReliaStar Life Insurance Company of New York since 1997;
Executive Vice President and Chief Operating Officer of
Lincoln Security Life Insurance Company from 1996 to 1997
until its merger into ReliaStar Life Insurance Company of
New York; President and Chief Executive Officer of The R.E.
Lee Group/US, Inc. from 1991 to 1996.
</TABLE>

46
<PAGE> 50

<TABLE>
<CAPTION>
PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------
<S> <C>
Robert C. Salipante(2) Chairman of Security-Connecticut Life Insurance Company
since 2000; President and Chief Operating Officer of
ReliaStar Financial Corp. and ReliaStar Life Insurance
Company since 1999; Senior Vice President of ReliaStar
Financial Corp. and ReliaStar Life Insurance Company from
1996 to 1999; Vice Chairman of ReliaStar Life Insurance
Company of New York since 1999; President and Chief
Executive Officer of ReliaStar Life Insurance Company of New
York from 1998 to 1999; Senior Vice President of ReliaStar
Financial Corp. from 1994 to 1996; Senior Vice President and
Chief Financial Officer of ReliaStar Financial Corp. from
1992 to 1994; Director and Officer of various subsidiaries
of ReliaStar Financial Corp.
John G. Turner(2) Chairman and Chief Executive Officer of ReliaStar Financial
Corp. and ReliaStar Life Insurance Company since 1993;
Chairman of ReliaStar United Services Life Insurance Company
from 1995 until its merger with ReliaStar Life Insurance
Company in 1998; Chairman of ReliaStar Life Insurance
Company of New York since 1995; Chairman of Northern Life
Insurance Company since 1992; Director and Officer of
various subsidiaries of ReliaStar Financial Corp.
Charles B. Updike(1) Partner of Schoeman, Marsh & Updike (New York law firm)
since 1976.
Ross M. Weale(1) President of Waccabuc Enterprise, Inc. (New York management
consulting firm) since 1996; President and Chief Executive
Officer of Country Bank (financial institution) from 1986 to
1996.
</TABLE>

- ---------------
(1) Director of ReliaStar Life Insurance Company of New York

(2) Director and Officer of ReliaStar Life Insurance Company of New York

(3) Officer of ReliaStar Life Insurance Company of New York

The Executive Committee of our Board of Directors consists of Directors Turner,
Salipante, Huneke, Updike, and Weale.

The Compliance Committee of our Board of Directors consists of Directors Weale,
Carb, Conley, Haynes, Perrotta and Updike.

The Compliance Committee of our Board of Directors consists of Directors Weale,
Carb, Conley, Haynes, Perrotta, and Updike.

47
<PAGE> 51

The following is a list of the current directors and executive officers of
the principal underwriter and their business addresses:

<TABLE>
<CAPTION>
NAME AND PRINCIPAL
BUSINESS ADDRESS POSITION AND OFFICES
- ------------------ --------------------
<S> <C>
John H. Flittie* Director, Chairman
Anne W. Dowdle* Director
Michael J. Dubes Director
1501 Fourth Avenue
Seattle, Washington 98111
James R. Gelder Director
20 Security Drive
Avon, Connecticut 06001
Wayne R. Huneke* Director
Robert C. Salipante* Director
Jeffrey A. Montgomery* President and Chief Executive Officer
Kenneth S. Cameranesi* Executive Vice President and Chief Operations Officer
Gene Grayson* Vice President, National Sales and Marketing
David Braun* Assistant Vice President
Karin Callanan* Assistant Vice President
Susan M. Bergen* Secretary
Margaret B. Wall* Treasurer and Chief Financial Officer
Loralee A. Renelt* Assistant Secretary
Allen Kidd Assistant Secretary
222 North Arch Road
Richmond, Virginia 23236
</TABLE>

- ---------------
* 20 Washington Avenue South, Minneapolis, Minnesota 55401

STATE REGULATION

We are subject to the laws of the State of New York governing insurance
companies and to regulation and supervision by the Insurance Department of the
State of New York. We file an annual statement in a prescribed form with the
Insurance Department each year, and in each state we do business, covering our
operations for the preceding year and our financial condition as of the end of
that year. Our books and accounts are subject to review by the Insurance
Division and a full examination of our operations is conducted periodically
(usually every three years) by the National Association of Insurance
Commissioners. This regulation does not, however, involve supervision or
management of our investment practices or policies.

In addition, we are subject to regulation under the insurance laws of other
jurisdictions in which we operate.

LEGAL PROCEEDINGS

The Variable Account is not a party to any pending legal proceedings. The
Company is a defendant in various lawsuits in connection with the normal conduct
of its insurance operations. Some of the claims seek to be granted class action
status and many of the claims seek both compensatory and punitive damages. In
the opinion of management, the ultimate resolution of such litigation will not
have a material adverse impact to the financial position of the Company.

48
<PAGE> 52

BONDING ARRANGEMENTS

We maintain an insurance company blanket bond providing $25,000,000
coverage for our officers and employees and those of Washington Square
Securities, Inc. (WSSI), subject to a $500,000 deductible.

LEGAL MATTERS

Legal matters in connection with the Variable Account and the Policy
described in this Prospectus have been passed upon by Jeffrey A. Proulx,
Esquire, Attorney for the Company.

EXPERTS

The financial statements of ReliaStar Life Insurance Company of New York
Variable Life Separate Account I as of and for the years ended December 31, 1999
and December 31, 1998 and for the period from August 8, 1997 (date of inception)
to December 31, 1997 and the financial statements of ReliaStar Life Insurance
Company of New York as of December 31, 1999 and 1998 and for the years then
ended included in this Prospectus have been audited by Deloitte & Touche LLP,
independent auditors, as stated in their reports which are included herein, and
have been so included in reliance upon the reports of such firm given upon their
authority as experts in accounting and auditing.

Actuarial matters included in this Prospectus have been examined by Steven
P. West, F.S.A., M.A.A.A., as stated in the opinion filed as an exhibit to the
Registration Statement.

REGISTRATION STATEMENT CONTAINS FURTHER INFORMATION

A Registration Statement has been filed with the SEC under the Securities
Act of 1933 with respect to the Policies. This Prospectus does not contain all
information included in the Registration Statement, its amendments and exhibits.
For further information concerning the Variable Account, the Funds, the Policies
and us, please refer to the Registration Statement.

Statements in this Prospectus concerning provisions of the Policy and other
legal documents are summaries. Please refer to the documents as filed with the
SEC for a complete statement of the provisions of those documents.

Information may be obtained from the SEC's principal office in Washington,
D.C., for a fee it prescribes, or examined there without charge.

FINANCIAL STATEMENTS

The financial statements for the Variable Account reflect the operations of
the Variable Account as of and for the years ended December 31, 1999 and
December 31, 1998 and for the period from August 8, 1997 (date of inception) to
December 31, 1997. The financial statements are audited. The periods covered are
not necessarily indicative of the longer term performance of the assets held in
the Variable Account.

The financial statements of ReliaStar Life Insurance Company of New York
which are included in this Prospectus should be distinguished from the financial
statements of the Variable Account and should be considered only as bearing upon
the ability of ReliaStar Life Insurance Company of New York to meet its
obligations under the Policies. They should not be considered as bearing on the
investment performance of the assets held in the Variable Account. These
financial statements are as of December 31, 1999 and 1998 and for each of the
two years in the period ended December 31, 1999. The periods covered are not
necessarily indicative of the longer term performance of the Company.

49
<PAGE> 53

INDEPENDENT AUDITORS' REPORT

Board of Directors
ReliaStar Life Insurance Company of New York:

We have audited the accompanying statement of assets and liabilities of
ReliaStar Life Insurance Company of New York Variable Life Separate Account I as
of December 31, 1999 and the related statements of operations and changes in
policy owners' equity (including the individual sub-accounts which comprise the
Account) for the years ended December 31, 1999, 1998 and 1997. These financial
statements are the responsibility of the management of ReliaStar Life Insurance
Company of New York. Our responsibility is to express an opinion on these
financial statements based on our audit.

We have conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures include
confirmation of the securities owned as of December 31, 1999, by correspondence
with the account custodians. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
sub-accounts constituting the ReliaStar Life Insurance Company of New York
Separate Account I as of December 31, 1999 and the results of its operations and
changes in its policy owners' equity for the years ended December 31, 1999, 1998
and 1997, in conformity with generally accepted accounting principles.

Deloitte & Touche LLP

Minneapolis, Minnesota
February 18, 2000

<PAGE> 54

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
STATEMENT OF ASSETS AND LIABILITIES
December 31, 1999
(In Thousands, Except Shares)

ASSETS:

Investments In Mutual Funds At Market Value:

<TABLE>
<CAPTION>
SHARES COST MARKET VALUE
------- ------ ------------
<S> <C> <C> <C>
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio........................... 7,030 $ 394 $ 453
Alger American MidCap Growth Portfolio.................... 1,866 50 60
Alger American Small Capitalization Portfolio............. 2,144 92 118
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND (VIP):
VIP Equity-Income Portfolio -- IC Shares.................. 15,547 390 400
VIP Growth Portfolio -- IC Shares......................... 5,088 232 279
VIP High Income Portfolio -- IC Shares.................... 4,212 47 48
VIP Money Market Portfolio -- IC Shares................... 629,397 629 629
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND II (VIP II):
VIP II Contrafund Portfolio -- IC Shares.................. 17,601 419 513
VIP II Index 500 Portfolio -- IC Shares................... 5,260 752 881
VIP II Investment Grade Bond Portfolio -- IC Shares....... 4,074 49 50
JANUS ASPEN SERIES:
Aggressive Growth Portfolio............................... 6,456 254 385
Growth Portfolio.......................................... 7,392 211 249
International Growth Portfolio............................ 1,821 43 70
Worldwide Growth Portfolio................................ 10,930 358 522
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
AMT Limited Maturity Bond Portfolio....................... 1,187 16 16
AMT Partners Portfolio.................................... 16,757 312 329
AMT Socially Responsive Portfolio......................... 2 -- --
NORTHSTAR GALAXY TRUST:
Northstar Emerging Growth Portfolio....................... 6,112 143 179
Northstar Growth + Value Portfolio........................ 7,015 190 211
Northstar International Value Portfolio................... 4,839 65 71
Northstar Research Enhanced Index Portfolio............... 853 4 4
Northstar High Yield Bond Portfolio....................... 1,375 6 6
OCC ACCUMULATION TRUST:
Equity Portfolio.......................................... 219 8 8
Global Equity Portfolio................................... 4,674 80 77
Managed Portfolio......................................... 665 29 29
Small Cap Portfolio....................................... 1,450 34 33
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund -- Class IA Shares...... 2,860 30 28
Putnam VT Growth and Income Fund -- Class IA Shares....... 9,984 276 268
Putnam VT New Opportunities Fund -- Class IA Shares....... 366 13 16
Putnam VT Voyager Fund -- Class IA Shares................. 12,579 545 833
------
TOTAL ASSETS............................................ $6,765
======
LIABILITIES AND POLICY OWNERS' EQUITY:
Due from ReliaStar Life Insurance Company of New York..... ($ 1)
Policy Owners' Equity..................................... 6,766
------
TOTAL LIABILITIES AND POLICY OWNERS' EQUITY............. $6,765
======
</TABLE>

The accompanying notes are an integral part of the financial statements.

51
<PAGE> 55

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
ALGER AMERICAN
TOTAL ALL FUNDS GROWTH PORTFOLIO
------------------------------------------ ----------------------------------------
1999 1998 1997 1999 1998 1997
------------ ------------ ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income.... $ 44 $ 6 $ -- $ -- $ -- $ --
Reinvested capital gains...... 193 16 -- 11 3 --
Administrative expenses....... (27) (7) -- (1) -- --
------------ ------------ ------------ ----------- ----------- ------------
Net investment income
(loss) and capital
gains................... 210 15 -- 10 3 --
------------ ------------ ------------ ----------- ----------- ------------
Realized and unrealized gains
(losses):
Net realized gains (losses) on
redemptions of fund
shares...................... 240 (8) -- 13 -- --
Increase (decrease) in
unrealized appreciation of
investments................. 856 238 -- 52 7 --
------------ ------------ ------------ ----------- ----------- ------------
Net realized and unrealized
gains (losses)............ 1,096 230 -- 65 7 --
------------ ------------ ------------ ----------- ----------- ------------
Additions (reductions) from
operations................ 1,306 245 -- 75 10 --
------------ ------------ ------------ ----------- ----------- ------------
Policy Owners' transactions:
Net premium payments.......... 3,350 2,298 122 264 45 1
Surrenders.................... (30) (1) -- (14) -- --
Transfers between funds and/or
fixed acct.................. 85 -- -- 103 2 --
Policy loans.................. (1) -- -- -- -- --
Loan collateral interest
crediting................... -- -- -- -- -- --
Death benefits................ -- -- (1) -- -- --
Cost of insurance charges..... (412) (144) (3) (26) (3) --
Monthly Expense Charge........ (36) (12) -- (3) (1) --
------------ ------------ ------------ ----------- ----------- ------------
Additions (reductions) for
policy owners'
transactions............ 2,956 2,141 118 324 43 1
------------ ------------ ------------ ----------- ----------- ------------
Net additions (reductions)
for the year/period..... 4,262 2,386 118 399 53 1
Policy Owners' Equity, beginning
of the year/period............ 2,504 118 -- 54 1 --
------------ ------------ ------------ ----------- ----------- ------------
Policy Owners' Equity, end of
the year/period............... $ 6,766 $ 2,504 $ 118 $ 453 $ 54 $ 1
============ ============ ============ =========== =========== ============
Units Outstanding, beginning of
the year...................... 147,342.662 14,226.238 -- 3,716.345 86.866 --
Units Outstanding, end of the
year.......................... 299,671.163 147,342.662 10,339.628 23,204.017 3,716.345 86.866
Net Asset Value per Unit:....... $ -- $ -- $ -- $ 19.516075 $ 14.592177 $ 9.854808
</TABLE>

The accompanying notes are an integral part of the financial statements.

52
<PAGE> 56
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
ALGER AMERICAN ALGER AMERICAN
MIDCAP GROWTH PORTFOLIO SMALL CAPITALIZATION PORTFOLIO
---------------------------------------- ----------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ------------ ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........ $ -- $ -- $ -- $ -- $ -- $ --
Reinvested capital gains.......... 4 1 -- 6 2 --
Administrative expenses........... -- -- -- (1) -- --
----------- ----------- ------------ ----------- ----------- ------------
Net investment income (loss)
and capital gains........... 4 1 -- 5 2 --
----------- ----------- ------------ ----------- ----------- ------------
Realized and unrealized gains
(losses):
Net realized gains (losses) on
redemptions of fund shares...... -- -- -- 3 -- --
Increase (decrease) in unrealized
appreciation of investments..... 8 2 -- 22 4 --
----------- ----------- ------------ ----------- ----------- ------------
Net realized and unrealized
gains (losses)................ 8 2 -- 25 4 --
----------- ----------- ------------ ----------- ----------- ------------
Additions (reductions) from
operations.................... 12 3 -- 30 6 --
----------- ----------- ------------ ----------- ----------- ------------
Policy Owners' transactions:
Net premium payments.............. 28 20 2 64 27 5
Surrenders........................ -- -- -- (1) -- --
Transfers between funds and/or
fixed acct...................... (1) -- -- (1) 1 --
Policy loans...................... -- -- -- -- -- --
Loan collateral interest
crediting....................... -- -- -- -- -- --
Death benefits.................... -- -- -- -- -- --
Cost of insurance charges......... (3) (1) -- (9) (2) --
Monthly Expense Charge............ -- -- -- (1) -- --
----------- ----------- ------------ ----------- ----------- ------------
Additions (reductions) for
policy owners'
transactions................ 24 19 2 52 26 5
----------- ----------- ------------ ----------- ----------- ------------
Net additions (reductions) for
the year/period............. 36 22 2 82 32 5
Policy Owners' Equity, beginning of
the year/period................... 24 2 -- 37 5 --
----------- ----------- ------------ ----------- ----------- ------------
Policy Owners' Equity, end of the
year/period....................... $ 60 $ 24 $ 2 $ 119 $ 37 $ 5
=========== =========== ============ =========== =========== ============
Units Outstanding, beginning of the
year.............................. 1,885.358 206.735 -- 2,983.060 467.792 --
Units Outstanding, end of the
year.............................. 3,567.836 1,885.358 206.735 7,093.241 2,983.060 467.792
Net Asset Value per Unit:........... $ 16.879516 $ 12.802277 $ 9.825275 $ 16.687171 $ 11.635433 $ 10.071361
</TABLE>

The accompanying notes are an integral part of the financial statements.

53
<PAGE> 57
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
FIDELITY'S VIP FIDELITY'S VIP
EQUITY-INCOME PORTFOLIO GROWTH PORTFOLIO
IC SHARES IC SHARES
-------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income.......... $ 4 $ -- $ -- $ -- $ -- $ --
Reinvested capital gains............ 9 -- -- 12 -- --
Administrative expenses............. (2) (1) -- (1) (1) --
----------- ----------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains................. 11 (1) -- 11 (1) --
----------- ----------- ---------- ---------- ---------- ----------
Realized and unrealized gains
(losses):
Net realized gains (losses) on
redemptions of fund shares........ 16 -- -- 19 -- --
Increase (decrease) in unrealized
appreciation of investments....... (9) 19 -- 33 14 --
----------- ----------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)........................ 7 19 -- 52 14 --
----------- ----------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations...................... 18 18 -- 63 13 --
----------- ----------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................ 201 244 -- 195 99 2
Surrenders.......................... -- -- -- (1) (1) --
Transfers between funds and/or fixed
acct.............................. (41) -- -- (66) 1 --
Policy loans........................ (1) -- -- -- -- --
Loan collateral interest
crediting......................... -- -- -- -- -- --
Death benefits...................... -- -- -- -- -- --
Cost of insurance charges........... (27) (10) -- (18) (7) --
Monthly Expense Charge.............. (2) (1) -- (2) (1) --
----------- ----------- ---------- ---------- ---------- ----------
Additions (reductions) for
policy owners' transactions... 130 233 -- 108 91 2
----------- ----------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period............... 148 251 -- 171 104 2
Policy Owners' Equity, beginning of
the year/period..................... 251 -- -- 106 2 --
----------- ----------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period......................... $ 399 $ 251 $ -- $ 277 $ 106 $ 2
=========== =========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................ 10,662.981 5.405 -- 4,087.116 103.336 --
Units Outstanding, end of the year.... 15,974.343 10,662.981 5.405 7,611.339 4,087.116 103.336
Net Asset Value per Unit:............. $ 25.020668 $ 23.531218 $21.080180 $36.733274 $26.727479 $19.160956
</TABLE>

The accompanying notes are an integral part of the financial statements.

54
<PAGE> 58
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
FIDELITY'S VIP FIDELITY'S VIP
HIGH INCOME PORTFOLIO MONEY MARKET PORTFOLIO
IC SHARES IC SHARES
------------------------------------ -------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 2 $ -- $ -- $ 17 $ 1 $ --
Reinvested capital gains............. -- -- -- -- -- --
Administrative expenses.............. -- -- -- (2) -- --
---------- ---------- ---------- ----------- ---------- ----------
Net investment income (loss) and
capital gains.................. 2 -- -- 15 1 --
---------- ---------- ---------- ----------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... -- 2 -- -- -- --
Increase (decrease) in unrealized
appreciation of investments........ 1 -- -- -- -- --
---------- ---------- ---------- ----------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 1 2 -- -- -- --
---------- ---------- ---------- ----------- ---------- ----------
Additions (reductions) from
operations....................... 3 2 -- 15 1 --
---------- ---------- ---------- ----------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 31 131 -- 389 77 1
Surrenders........................... -- -- -- (1) -- --
Transfers between funds and/or fixed
acct............................... 14 (126) -- 194 (7) --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (3) (1) -- (32) (5) --
Monthly Expense Charge............... (1) -- -- (2) (1) --
---------- ---------- ---------- ----------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 41 4 -- 548 64 1
---------- ---------- ---------- ----------- ---------- ----------
Net additions (reductions) for
the year/period................ 44 6 -- 563 65 1
Policy Owners' Equity, beginning of the
year/period.......................... 6 -- -- 66 1 --
---------- ---------- ---------- ----------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 50 $ 6 $ -- $ 629 $ 66 $ 1
========== ========== ========== =========== ========== ==========
Units Outstanding, beginning of the
year................................. 308.121 -- -- 5,112.620 75.083 --
Units Outstanding, end of the year..... 2,913.802 308.121 -- 46,238.678 5,112.620 75.083
Net Asset Value per Unit:.............. $16.349223 $15.116470 $15.800365 $ 13.611549 $12.941412 $12.269546
</TABLE>

The accompanying notes are an integral part of the financial statements.

55
<PAGE> 59
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
FIDELITY'S VIP II FIDELITY'S VIP II
CONTRAFUND PORTFOLIO INDEX 500 PORTFOLIO
IC SHARES IC SHARES
------------------------------------- --------------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income.......... $ 1 $ -- $ -- $ 3 $ -- $ --
Reinvested capital gains............ 8 1 -- 2 -- --
Administrative expenses............. (2) (1) -- (4) (1) --
----------- ---------- ---------- ----------- ----------- ----------
Net investment income (loss) and
capital gains................. 7 -- -- 1 (1) --
----------- ---------- ---------- ----------- ----------- ----------
Realized and unrealized gains
(losses):
Net realized gains (losses) on
redemptions of fund shares........ 18 -- -- 16 1 --
Increase (decrease) in unrealized
appreciation of investments....... 57 37 -- 91 38 --
----------- ---------- ---------- ----------- ----------- ----------
Net realized and unrealized gains
(losses)........................ 75 37 -- 107 39 --
----------- ---------- ---------- ----------- ----------- ----------
Additions (reductions) from
operations...................... 82 37 -- 108 38 --
----------- ---------- ---------- ----------- ----------- ----------
Policy Owners' transactions:
Net premium payments................ 223 182 9 510 265 5
Surrenders.......................... (1) -- -- (7) -- --
Transfers between funds and/or fixed
acct.............................. 20 1 -- 46 2 --
Policy loans........................ -- -- -- -- -- --
Loan collateral interest
crediting......................... -- -- -- -- -- --
Death benefits...................... -- -- -- -- -- --
Cost of insurance charges........... (29) (8) -- (63) (17) (1)
Monthly Expense Charge.............. (2) (1) -- (5) (1) --
----------- ---------- ---------- ----------- ----------- ----------
Additions (reductions) for
policy owners' transactions... 211 174 9 481 249 4
----------- ---------- ---------- ----------- ----------- ----------
Net additions (reductions) for
the year/period............... 293 211 9 589 287 4
Policy Owners' Equity, beginning of
the year/period..................... 220 9 -- 291 4 --
----------- ---------- ---------- ----------- ----------- ----------
Policy Owners' Equity, end of the
year/period......................... $ 513 $ 220 $ 9 $ 880 $ 291 $ 4
=========== ========== ========== =========== =========== ==========
Units Outstanding, beginning of the
year................................ 9,211.711 495.110 -- 10,104.460 203.033 --
Units Outstanding, end of the year.... 17,270.199 9,211.711 495.110 25,257.361 10,104.460 203.033
Net Asset Value per Unit:............. $ 29.708780 $23.909755 $18.395120 $ 34.868839 $ 28.934443 $22.547720
</TABLE>

The accompanying notes are an integral part of the financial statements.

56
<PAGE> 60
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
FIDELITY'S VIP II
INVESTMENT GRADE BOND PORTFOLIO JANUS ASPEN SERIES
IC SHARES AGGRESSIVE GROWTH PORTFOLIO
------------------------------------ -------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ----------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 1 $ -- $ -- $ 2 $ -- $ --
Reinvested capital gains............. -- -- -- 3 -- --
Administrative expenses.............. -- -- -- (1) -- --
---------- ---------- ---------- ----------- ---------- ----------
Net investment income (loss) and
capital gains.................. 1 -- -- 4 -- --
---------- ---------- ---------- ----------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... (1) -- -- 42 -- --
Increase (decrease) in unrealized
appreciation of investments........ -- 1 -- 120 11 --
---------- ---------- ---------- ----------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (1) 1 -- 162 11 --
---------- ---------- ---------- ----------- ---------- ----------
Additions (reductions) from
operations....................... -- 1 -- 166 11 --
---------- ---------- ---------- ----------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 42 19 -- 145 51 --
Surrenders........................... -- -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (6) -- -- 35 -- --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (4) (1) -- (18) (2) --
Monthly Expense Charge............... -- -- -- (2) -- --
---------- ---------- ---------- ----------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 32 18 -- 160 49 --
---------- ---------- ---------- ----------- ---------- ----------
Net additions (reductions) for
the year/period................ 32 19 -- 326 60 --
Policy Owners' Equity, beginning of the
year/period.......................... 19 -- -- 60 -- --
---------- ---------- ---------- ----------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 51 $ 19 $ -- $ 386 $ 60 $ --
========== ========== ========== =========== ========== ==========
Units Outstanding, beginning of the
year................................. 1,362.857 -- -- 4,022.517 2.178 --
Units Outstanding, end of the year..... 3,626.177 1,362.857 -- 11,631.594 4,022.517 2.178
Net Asset Value per Unit:.............. $13.662210 $13.807112 $12.685026 $ 33.167484 $14.714669 $10.960002
</TABLE>

The accompanying notes are an integral part of the financial statements.

57
<PAGE> 61
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
JANUS ASPEN SERIES JANUS ASPEN SERIES
GROWTH PORTFOLIO INTERNATIONAL GROWTH PORTFOLIO
------------------------------------- -----------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income............ $ -- $ 1 $ -- $ -- $ -- $ --
Reinvested capital gains.............. 1 -- -- -- -- --
Administrative expenses............... (1) -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ---------
Net investment income (loss) and
capital gains................... -- 1 -- -- -- --
----------- ---------- ---------- ---------- ---------- ---------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.......... 24 -- -- 2 -- --
Increase (decrease) in unrealized
appreciation of investments......... 29 9 -- 26 1 --
----------- ---------- ---------- ---------- ---------- ---------
Net realized and unrealized gains
(losses).......................... 53 9 -- 28 1 --
----------- ---------- ---------- ---------- ---------- ---------
Additions (reductions) from
operations........................ 53 10 -- 28 1 --
----------- ---------- ---------- ---------- ---------- ---------
Policy Owners' transactions:
Net premium payments.................. 157 65 -- 26 13 4
Surrenders............................ -- -- -- (1) -- --
Transfers between funds and/or fixed
acct................................ (13) -- -- 6 -- --
Policy loans.......................... -- -- -- -- -- --
Loan collateral interest crediting.... -- -- -- -- -- --
Death benefits........................ -- -- -- -- -- --
Cost of insurance charges............. (18) (4) -- (4) (2) --
Monthly Expense Charge................ (2) -- -- (1) -- --
----------- ---------- ---------- ---------- ---------- ---------
Additions (reductions) for policy
owners' transactions............ 124 61 -- 26 11 4
----------- ---------- ---------- ---------- ---------- ---------
Net additions (reductions) for the
year/period..................... 177 71 -- 54 12 4
Policy Owners' Equity, beginning of the
year/period........................... 71 -- -- 16 4 --
----------- ---------- ---------- ---------- ---------- ---------
Policy Owners' Equity, end of the
year/period........................... $ 248 $ 71 $ -- $ 70 $ 16 $ 4
=========== ========== ========== ========== ========== =========
Units Outstanding, beginning of the
year.................................. 5,105.809 -- -- 1,430.417 427.927 --
Units Outstanding, end of the year...... 12,476.529 5,105.809 -- 3,462.662 1,430.417 427.927
Net Asset Value per Unit:............... $ 19.898078 $13.819668 $10.187114 $20.567965 $11.284244 $9.625377
</TABLE>

The accompanying notes are an integral part of the financial statements.

58
<PAGE> 62
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
NEUBERGER BERMAN
JANUS ASPEN SERIES ADVISERS MANAGEMENT TRUST
WORLDWIDE GROWTH PORTFOLIO LIMITED MATURITY BOND PORTFOLIO
-------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 1 $ 2 $ -- $ 1 $ -- $ --
Reinvested capital gains............. -- 1 -- -- -- --
Administrative expenses.............. (2) (1) -- (1) -- --
----------- ----------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. (1) 2 -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... 41 1 -- (1) -- --
Increase (decrease) in unrealized
appreciation of investments........ 150 14 -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 191 15 -- (1) -- --
----------- ----------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 190 17 -- (1) -- --
----------- ----------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 224 169 25 77 22 1
Surrenders........................... (1) -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (53) 3 -- (72) -- --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- (1) -- -- --
Cost of insurance charges............ (33) (15) -- (7) (4) --
Monthly Expense Charge............... (3) (1) -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 134 156 24 (2) 18 1
----------- ----------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period................ 324 173 24 (3) 18 1
Policy Owners' Equity, beginning of the
year/period.......................... 197 24 -- 19 1 --
----------- ----------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 521 $ 197 $ 24 $ 16 $ 19 $ 1
=========== =========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 15,578.182 2,468.532 -- 1,753.632 105.555 --
Units Outstanding, end of the year..... 25,028.565 15,578.182 2,468.532 1,446.569 1,753.632 105.555
Net Asset Value per Unit:.............. $ 20.853866 $ 12.681124 $ 9.836310 $10.862584 $10.704404 $10.254171
</TABLE>

The accompanying notes are an integral part of the financial statements.

59
<PAGE> 63
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
NEUBERGER BERMAN NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST ADVISERS MANAGEMENT TRUST
PARTNERS PORTFOLIO SOCIALLY RESPONSIVE PORTFOLIO
-------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
----------- ----------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 3 $ -- $ -- $ -- $ -- $ --
Reinvested capital gains............. 5 1 -- -- -- --
Administrative expenses.............. (2) (1) -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 6 -- -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... 11 (1) -- -- -- --
Increase (decrease) in unrealized
appreciation of investments........ -- 17 -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 11 16 -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 17 16 -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 145 258 1 -- -- --
Surrenders........................... (1) -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (74) 1 -- -- -- --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (22) (10) -- -- -- --
Monthly Expense Charge............... (2) (1) -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 46 248 1 -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period................ 63 264 1 -- -- --
Policy Owners' Equity, beginning of the
year/period.......................... 265 1 -- -- -- --
----------- ----------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 328 $ 265 $ 1 $ -- $ -- $ --
=========== =========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 24,509.783 55.116 -- -- -- --
Units Outstanding, end of the year..... 28,491.605 24,509.783 55.116 2.542 -- --
Net Asset Value per Unit:.............. $ 11.553436 $ 10.760407 $10.325813 $10.754901 $ -- $ --
</TABLE>

The accompanying notes are an integral part of the financial statements.

60
<PAGE> 64
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
NORTHSTAR GALAXY TRUST NORTHSTAR GALAXY TRUST
EMERGING GROWTH PORTFOLIO GROWTH + VALUE PORTFOLIO
------------------------------------ ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ -- $ -- $ -- $ -- $ -- $ --
Reinvested capital gains............. 24 1 -- 37 -- --
Administrative expenses.............. -- -- -- (1) -- --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 24 1 -- 36 -- --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... 5 -- -- 17 -- --
Increase (decrease) in unrealized
appreciation of investments........ 35 1 -- 14 7 --
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 40 1 -- 31 7 --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 64 2 -- 67 7 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 17 13 1 50 38 11
Surrenders........................... -- -- -- -- -- --
Transfers between funds and/or fixed
acct............................... 87 -- -- 54 (4) --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (3) (1) -- (8) (5) --
Monthly Expense Charge............... -- 0 -- (1) -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 101 12 1 95 29 11
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period................ 165 14 1 162 36 11
Policy Owners' Equity, beginning of the
year/period.......................... 15 1 -- 47 11 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 180 $ 15 $ 1 $ 209 $ 47 $ 11
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 804.528 49.892 -- 3,924.431 1,076.181 --
Units Outstanding, end of the year..... 3,929.860 804.528 49.892 8,872.444 3,924.431 1,076.181
Net Asset Value per Unit:.............. $45.340005 $18.810805 $16.036372 $23.706151 $12.158465 $10.189337
</TABLE>

The accompanying notes are an integral part of the financial statements.

61
<PAGE> 65
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
NORTHSTAR GALAXY TRUST NORTHSTAR GALAXY TRUST
INTERNATIONAL VALUE PORTFOLIO RESEARCH ENHANCED INDEX PORTFOLIO
------------------------------------ ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 1 $ 1 $ -- $ -- $ -- $ --
Reinvested capital gains............. 7 2 -- -- -- --
Administrative expenses.............. -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 8 3 -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... 10 -- -- (1) -- --
Increase (decrease) in unrealized
appreciation of investments........ 5 1 -- 1 (1) --
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 15 1 -- -- (1) --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 23 4 -- -- (1) --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 36 46 9 6 7 1
Surrenders........................... -- -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (30) 1 -- (7) -- --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (8) (7) (1) (1) (1) --
Monthly Expense Charge............... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... (2) 40 8 (2) 6 1
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period................ 21 44 8 (2) 5 1
Policy Owners' Equity, beginning of the
year/period.......................... 52 8 -- 6 1 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 73 $ 52 $ 8 $ 4 $ 6 $ 1
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 4,281.249 823.667 -- 443.781 29.810 --
Units Outstanding, end of the year..... 4,017.898 4,281.249 823.667 278.069 443.781 29.810
Net Asset Value per Unit:.............. $17.787065 $11.844211 $10.129526 $15.298625 $14.457253 $14.264010
</TABLE>

The accompanying notes are an integral part of the financial statements.

62
<PAGE> 66
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
NORTHSTAR GALAXY TRUST OCC ACCUMULATION TRUST
HIGH YIELD BOND PORTFOLIO EQUITY PORTFOLIO
------------------------------------ ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 1 $ 1 $ -- $ -- $ -- $ --
Reinvested capital gains............. -- -- -- -- -- --
Administrative expenses.............. -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 1 1 -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... (1) -- -- -- -- --
Increase (decrease) in unrealized
appreciation of investments........ 1 (1) -- (1) 1 --
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... -- (1) -- (1) 1 --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 1 -- -- (1) 1 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 7 12 -- 6 1 3
Surrenders........................... -- -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (9) (2) -- -- -- --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (1) -- -- (1) (1) --
Monthly Expense Charge............... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... (3) 10 -- 5 -- 3
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period................ (2) 10 -- 4 1 3
Policy Owners' Equity, beginning of the
year/period.......................... 10 -- -- 4 3 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 8 $ 10 $ -- $ 8 $ 4 $ 3
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 858.616 13.072 -- 304.805 265.451 --
Units Outstanding, end of the year..... 586.534 858.616 13.072 667.165 304.805 265.451
Net Asset Value per Unit:.............. $10.130924 $10.468149 $10.406855 $12.334780 $12.029100 $10.753858
</TABLE>

The accompanying notes are an integral part of the financial statements.

63
<PAGE> 67
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST OCC ACCUMULATION TRUST
GLOBAL EQUITY PORTFOLIO MANAGED PORTFOLIO
----------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- --------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income............ $ 1 $ -- $ -- $ 1 $ -- $ --
Reinvested capital gains.............. 11 1 -- 2 1 --
Administrative expenses............... (1) -- -- -- -- --
---------- ---------- --------- ---------- ---------- ----------
Net investment income (loss) and
capital gains................... 11 1 -- 3 1 --
---------- ---------- --------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.......... 4 -- -- 1 1 --
Increase (decrease) in unrealized
appreciation of investments......... (2) (1) -- (1) 1 --
---------- ---------- --------- ---------- ---------- ----------
Net realized and unrealized gains
(losses).......................... 2 (1) -- -- 2 --
---------- ---------- --------- ---------- ---------- ----------
Additions (reductions) from
operations........................ 13 -- -- 3 3 --
---------- ---------- --------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments.................. 41 29 5 32 38 13
Surrenders............................ -- -- -- -- -- --
Transfers between funds and/or fixed
acct................................ (4) -- -- (45) -- --
Policy loans.......................... -- -- -- -- -- --
Loan collateral interest crediting.... -- -- -- -- -- --
Death benefits........................ -- -- -- -- -- --
Cost of insurance charges............. (4) (1) -- (5) (6) (1)
Monthly Expense Charge................ -- -- -- (1) (1) --
---------- ---------- --------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions............ 33 28 5 (19) 31 12
---------- ---------- --------- ---------- ---------- ----------
Net additions (reductions) for the
year/period..................... 46 28 5 (16) 34 12
Policy Owners' Equity, beginning of the
year/period........................... 33 5 -- 46 12 --
---------- ---------- --------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period........................... $ 79 $ 33 $ 5 $ 30 $ 46 $ 12
========== ========== ========= ========== ========== ==========
Units Outstanding, beginning of the
year.................................. 3,071.262 473.059 -- 4,201.605 1,233.680 --
Units Outstanding, end of the year...... 5,663.042 3,071.262 473.059 2,533.542 4,201.605 1,233.680
Net Asset Value per Unit:............... $13.643299 $10.782965 $9.518205 $11.444770 $10.900163 $10.175476
</TABLE>

The accompanying notes are an integral part of the financial statements.

64
<PAGE> 68
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
PUTNAM VT
OCC ACCUMULATION TRUST DIVERSIFIED INCOME FUND
SMALL CAP PORTFOLIO CLASS IA SHARES
------------------------------------ ------------------------------------
1999 1998 1997 1999 1998 1997
---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income............ $ -- $ -- $ -- $ 2 $ -- $ --
Reinvested capital gains.............. -- -- -- -- -- --
Administrative expenses............... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains................... -- -- -- 2 -- --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.......... (4) -- -- (1) -- --
Increase (decrease) in unrealized
appreciation of investments......... 1 (2) -- (1) (1) --
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses).......................... (3) (2) -- (2) (1) --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations........................ (3) (2) -- -- (1) --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments.................. 43 42 11 9 25 --
Surrenders............................ -- -- -- -- -- --
Transfers between funds and/or fixed
acct................................ (47) -- -- (2) -- --
Policy loans.......................... -- -- -- -- -- --
Loan collateral interest crediting.... -- -- -- -- -- --
Death benefits........................ -- -- -- -- -- --
Cost of insurance charges............. (6) (5) -- (2) (2) --
Monthly Expense Charge................ -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions............ (10) 37 11 5 23 --
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for the
year/period..................... (13) 35 11 5 22 --
Policy Owners' Equity, beginning of the
year/period........................... 46 11 -- 22 -- --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period........................... $ 33 $ 46 $ 11 $ 27 $ 22 $ --
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year.................................. 4,950.484 4,950.484 -- 1,802.260 16.242 --
Units Outstanding, end of the year...... 3,565.027 4,950.484 1,063.874 2,129.016 1,802.260 16.242
Net Asset Value per Unit:............... $ 9.156366 $ 9.327299 $10.252721 $13.339586 $13.108403 $13.290543
</TABLE>

The accompanying notes are an integral part of the financial statements.

65
<PAGE> 69
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
PUTNAM VT PUTNAM VT
GROWTH AND INCOME FUND NEW OPPORTUNITIES FUND
CLASS IA SHARES CLASS IA SHARES
------------------------------------- ------------------------------------
1999 1998 1997 1999 1998 1997
----------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income........... $ 3 $ -- $ -- $ -- $ -- $ --
Reinvested capital gains............. 14 1 -- -- -- --
Administrative expenses.............. (2) (1) -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 15 -- -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... -- (1) -- -- -- --
Increase (decrease) in unrealized
appreciation of investments........ (18) 10 -- 3 -- --
----------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (18) 9 -- 3 -- --
----------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... (3) 9 -- 3 -- --
----------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 141 104 3 14 -- --
Surrenders........................... (1) -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (8) 52 -- 1 -- --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Cost of insurance charges............ (19) (9) -- (3) -- --
Monthly Expense Charge............... (2) (1) -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 111 146 3 12 -- --
----------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year/period................ 108 155 3 15 -- --
Policy Owners' Equity, beginning of the
year/period.......................... 158 3 -- -- -- --
----------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year/period.......................... $ 266 $ 158 $ 3 $ 15 $ -- $ --
=========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 6,624.776 161.028 -- -- -- --
Units Outstanding, end of the year..... 11,011.914 6,624.776 161.028 414.168 -- --
Net Asset Value per Unit:.............. $ 24.291674 $23.912286 $20.717931 $38.550963 $23.912286
</TABLE>

The accompanying notes are an integral part of the financial statements.

66
<PAGE> 70
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 1999 and 1998 and
the period from August 8, 1997 (date of inception) to December 31, 1997
(In Thousands)

<TABLE>
<CAPTION>
PUTNAM VT
VOYAGER FUND
CLASS IA SHARES
--------------------------------------
1999 1998 1997
----------- ----------- ----------
<S> <C> <C> <C>
Net investment income (loss):
Reinvested dividend income................................ $ -- $ -- $ --
Reinvested capital gains.................................. 37 1 --
Administrative expenses................................... (3) -- --
----------- ----------- ----------
Net investment income (loss) and capital gains........ 34 1 --
----------- ----------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions of fund
shares.................................................. 7 (11) --
Increase (decrease) in unrealized appreciation of
investments............................................. 239 49 --
----------- ----------- ----------
Net realized and unrealized gains (losses).............. 246 38 --
----------- ----------- ----------
Additions (reductions) from operations.................. 280 39 --
----------- ----------- ----------
Policy Owners' transactions:
Net premium payments...................................... 227 256 9
Surrenders................................................ (1) -- --
Transfers between funds and/or fixed acct................. 4 75 --
Policy loans.............................................. -- -- --
Loan collateral interest crediting........................ -- -- --
Death benefits............................................ -- -- --
Cost of insurance charges................................. (35) (14) --
Monthly Expense Charge.................................... (4) (2) --
----------- ----------- ----------
Additions (reductions) for policy owners'
transactions........................................ 191 315 9
----------- ----------- ----------
Net additions (reductions) for the year/period........ 471 354 9
Policy Owners' Equity, beginning of the year/period......... 363 9 --
----------- ----------- ----------
Policy Owners' Equity, end of the year/period............... $ 834 $ 363 $ 9
=========== =========== ==========
Units Outstanding, beginning of the year.................... 14,239.896 431.004 --
Units Outstanding, end of the year.......................... 20,705.425 14,239.896 431.004
Net Asset Value per Unit:................................... $ 40.259562 $ 25.445248 $20.460670
</TABLE>

The accompanying notes are an integral part of the financial statements.

67
<PAGE> 71

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION:
ReliaStar Life Insurance Company of New York Variable Life Separate Account I
("Separate Account I") was established by ReliaStar Life Insurance Company of
New York ("ReliaStar Life of New York"), previously ReliaStar Bankers Security
Life Insurance Society, in 1986 under the New York insurance laws. Separate
Account I operates as a unit investment trust under the Investment Company Act
of 1940 and is used to fund certain benefits for variable life insurance
policies issued by ReliaStar Life of New York. The assets of Separate Account I
and its sub-accounts are the property of ReliaStar Life of New York. The portion
of Separate Account I assets applicable to the variable life policies will not
be charged with liabilities arising out of any other business ReliaStar Life of
New York may conduct. The net assets maintained in the sub-accounts provide the
basis for the periodic determination of the amount of increased or decreased
benefits under the policies. The net assets may not be less than the amount
required under the state insurance law to provide for death benefits (without
regard to the minimum death benefit guarantee) and other policy benefits.
Additional assets are held in ReliaStar Life of New York's general account to
cover the contingency that the guaranteed minimum death benefit might exceed the
death benefit which would have been payable in the absence of such guarantee.

Payments received under the policies are allocated to sub-accounts of the
account, each of which invested in one of the following funds during the year:

<TABLE>
<CAPTION>
THE ALGER AMERICAN FUND FIDELITY'S VIP FIDELITY'S VIP II
----------------------- -------------- -----------------
<S> <C> <C>
Growth Portfolio VIP Equity-Income Portfolio -- IC VIP II Contrafund Portfolio -- IC Shares
Shares
Mid Cap Growth Portfolio VIP Growth Portfolio -- IC Shares VIP II Index 500 Portfolio -- IC Shares
Small Capitalization Portfolio VIP High Income Portfolio -- IC Shares VIP II Investment Grade Bond Portfolio -- IC
Shares
VIP Money Market Portfolio -- IC
Shares
</TABLE>

<TABLE>
<CAPTION>
JANUS ASPEN SERIES NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST NORTHSTAR GALAXY TRUST
- ------------------ ------------------------------------------ ----------------------
<S> <C> <C>
Aggressive Growth Portfolio AMT Limited Maturity Bond Portfolio Emerging Growth Portfolio
Growth Portfolio AMT Partners Portfolio Growth + Value Portfolio
International Growth Portfolio AMT Socially Responsive Portfolio International Value Portfolio
Worldwide Growth Portfolio Research Enhanced Index Portfolio
High Yield Bond Portfolio
</TABLE>

<TABLE>
<CAPTION>
OCC ACCUMULATION TRUST PUTNAM VARIABLE TRUST
---------------------- ---------------------
<S> <C>
Equity Portfolio Putnam VT Diversified Income Fund -- Class IA Shares
Global Equity Portfolio Putnam VT Growth and Income Fund -- Class IA Shares
Managed Portfolio Putnam VT New Opportunities Fund -- Class IA Shares
Small Capitalization Portfolio Putnam VT Voyager Fund -- Class IA Shares
</TABLE>

Fred Alger Management, Inc. is the investment adviser for the three portfolios
of The Alger American Fund and is paid fees for its services by The Alger
American Fund Portfolios. Fidelity Management & Research Company is the
investment adviser for Fidelity's Variable Insurance Products Fund (VIP) and
Variable Insurance Products Fund II (VIP II) and is paid for its services by the
VIP and VIP II Portfolios. Janus Capital Corporation is the investment adviser
for the four portfolios of Janus Aspen Series and is paid fees for its services
by the Janus Aspen Series Portfolios. Neuberger Berman Management Inc. is the
investment manager for the three portfolios of the Neuberger Berman Advisers
Management Trust and is paid fees for its services by the Neuberger Berman
Advisers Management Trust Portfolios. Pilgrim Advisors, Inc., an affiliate of
ReliaStar Life Insurance Company of New York, is the investment adviser for the
five Northstar Galaxy Trust Portfolios and is paid fees for its services by the
Galaxy Trust portfolios. OpCap Advisors is the investment adviser for the four
portfolios of the OCC Accumulation Trust and is paid fees for its services by
the OCC Accumulation Trust Funds.

<PAGE> 72

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS, CONTINUED

1. ORGANIZATION: -- (Continued)
Putnam Investment Management, Inc. is the investment adviser for Putnam Variable
Trust and is paid fees for its services by Putnam Variable Trust. The related
Funds' prospectuses contain further information.

Fidelity VIP II Contrafund Portfolio is a registered trademark to FMMR
Corporation.

On August 8, 1997, Sub-Accounts investing in The Alger American Fund, Fidelity
VIP and VIP II, Janus Aspen Series, Neuberger Berman Advisers Management Trust,
Northstar Galaxy Trust and OCC Accumulation Trust were made available to
ReliaStarLife of New York policies.

On July 29, 1998, Northstar Variable Trust Portfolio's changed its name to
Northstar Galaxy Trust Portfolios (GT). Also on July 29, 1998, the Northstar
Variable Trust Growth Portfolio changed its name to Northstar Galaxy Trust
Growth + Value Portfolio.

On November 9, 1998, Northstar Galaxy Trust Income and Growth Portfolio changed
its name to Northstar Galaxy Trust Emerging Growth Portfolio.

On April 30, 1999, sub-accounts investing in Neuberger Berman Advisers
Management Trust Socially Responsive Portfolio and Putnam VT New Opportunities
Fund were made available to purchasers of ReliaStar Life of New York's Separate
Account I contracts. Also on April 30, 1999, Northstar Galaxy Trust Multi-Sector
Bond Portfolio changed its name to Northstar Galaxy Trust Research Enhanced
Index Portfolio and sub-accounts investing in the Putnam VT Diversified Income
Fund were closed to new premium and transfers.

On November 1, 1999, Northstar Investment Management Corporation changed its
name to Pilgrim Advisors, Inc. Substantially the same personnel are performing
the investment advisory services on behalf of Pilgrim Advisors, Inc.

2. SIGNIFICANT ACCOUNTING POLICIES:
SECURITIES VALUATION TRANSACTIONS AND RELATED INVESTMENT INCOME:
The market value of investments in the sub-accounts is based on the closing net
asset values of the fund shares held at the end of the year. Investment
transactions are accounted for on the trade date (date the order to purchase or
redeem is executed) and dividend income and capital gain distributions are
recorded on the exdividend date. Net realized gains and losses on redemptions of
shares of the funds are determined on the basis of specific identification of
fund share costs.

3. FEDERAL INCOME TAXES:
ReliaStar Life of New York is taxed as a life insurance company under the
Internal Revenue Code of 1986, as amended (the "Code"). Since the Separate
Account I is not a separate entity from ReliaStar Life of New York, and its
operations form a part of ReliaStar Life of New York, it is not taxed separately
as a "regulated investment company" under Sub-chapter M of the Code. Under
existing Federal income tax law, investment income of the Separate Account I, to
the extent that it is applied to increase reserves under a contract, is not
taxed and may be compounded through reinvestment without additional tax to
ReliaStar Life of New York.

4. POLICY CHARGES:
Certain charges are made by ReliaStar Life of New York to policy owners'
Variable Accumulation Values in the Account in accordance with the terms of the
policies. These charges are set forth in the policies and may include: cost of
insurance; a monthly expense charge; death benefit guarantee charge; optional
insurance benefit charges; surrender charges and sales charge refunds.

<PAGE> 73
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS, CONTINUED

5. INVESTMENTS:
For the year ended December 31, 1999, investment activity in the funds was as
follows (in thousands):

<TABLE>
<CAPTION>
COST OF PROCEEDS
PURCHASES FROM SALES
--------- ----------
<S> <C> <C>
INVESTING FUND
- ------------------------------------------------------------
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio........................... $ 411 $ 77
Alger American MidCap Growth Portfolio.................... 37 9
Alger American Small Capitalization Portfolio............. 96 38
FIDELITY'S VIP:
VIP Equity-Income Portfolio -- IC Shares.................. 290 148
VIP Growth Portfolio -- IC Shares......................... 256 138
VIP High Income Portfolio -- IC Shares.................... 64 22
VIP Money Market Portfolio -- IC Shares................... 804 241
FIDELITY'S VIP II:
VIP II Contrafund Portfolio -- IC Shares.................. 309 91
VIP II Index 500 Portfolio -- IC Shares................... 580 98
VIP II Investment Grade Bond Portfolio -- IC Shares....... 55 23
JANUS ASPEN SERIES:
Aggressive Growth Portfolio............................... 265 101
Growth Portfolio.......................................... 227 101
International Growth Portfolio............................ 39 13
Worldwide Growth Portfolio................................ 326 192
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
AMT Limited Maturity Bond Portfolio....................... 84 86
AMT Partners Portfolio.................................... 188 134
AMT Socially Responsive Portfolio......................... -- --
NORTHSTAR GALAXY TRUST:
Northstar Emerging Growth Portfolio....................... 140 16
Northstar Growth + Value Portfolio........................ 189 57
Northstar International Value Portfolio................... 103 98
Northstar Research Enhanced Index Portfolio............... 6 8
Northstar High Yield Bond Portfolio....................... 7 10
OCC ACCUMULATION TRUST:
Equity Portfolio.......................................... 5 --
Global Equity Portfolio................................... 72 30
Managed Portfolio......................................... 76 93
Small Cap Portfolio....................................... 77 87
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund -- Class IA Shares...... 13 6
Putnam VT Growth and Income Fund -- Class IA Shares....... 175 47
Putnam VT New Opportunities Fund -- Class IA Shares....... 14 1
Putnam VT Voyager Fund -- Class IA Shares................. 320 95
------ ------
Total..................................................... $5,228 $2,060
====== ======
</TABLE>

70
<PAGE> 74

INDEPENDENT AUDITORS' REPORT

Board of Directors and Shareholder
ReliaStar Life Insurance Company of New York
(A Wholly Owned Subsidiary of Security-Connecticut Life Insurance Company)
Woodbury, New York

We have audited the accompanying balance sheets of ReliaStar Life Insurance
Company of New York (the Company) as of December 31, 1999 and 1998, and the
related statements of income, shareholder's equity and comprehensive income, and
cash flows for each of the two years in the period ended December 31, 1999.
These financial statements are the responsibility of the Company's management.
Our responsibility is to express an opinion on these financial statements based
on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of ReliaStar Life Insurance
Company of New York as of December 31, 1999 and 1998 and the results of its
operations and its cash flows for each of the two years in the period ended
December 31, 1999 in conformity with generally accepted accounting principles.

Deloitte & Touche LLP

Minneapolis, Minnesota
February 1, 2000

71
<PAGE> 75

BALANCE SHEETS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ----------------------------------------------------------------------------------
<S> <C> <C>

ASSETS
Fixed Maturity Securities (Amortized Cost: 1999, $1,489.6;
1998, $1,503.9) $1,473.0 $1,585.6
Equity Securities (Cost: 1999, $5.3; 1998, $5.5) 5.5 5.7
Mortgage Loans on Real Estate 318.2 288.9
Real Estate .6 2.8
Policy Loans 83.8 81.6
Other Invested Assets 5.3 8.0
Short-Term Investments 14.4 35.9
- ----------------------------------------------------------------------------------
TOTAL INVESTMENTS 1,900.8 2,008.5
Cash .9 --
Accounts and Notes Receivable 10.1 7.8
Reinsurance Receivable 50.1 43.2
Deferred Policy Acquisition Costs 141.7 134.4
Present Value of Future Profits 79.4 68.2
Property and Equipment, Net 1.1 1.7
Accrued Investment Income 26.7 26.4
Goodwill 33.7 34.6
Other Assets -- 5.3
Assets Held in Separate Accounts 687.5 529.3
- ----------------------------------------------------------------------------------
TOTAL ASSETS $2,932.0 $2,859.4
- ----------------------------------------------------------------------------------
LIABILITIES
Future Policy and Contract Benefits $1,672.8 $1,736.3
Pending Policy Claims 26.4 27.7
Other Policyholder Funds 36.0 17.6
Income Taxes 10.8 33.4
Other Liabilities 59.4 56.3
Liabilities Related to Separate Accounts 685.0 526.8
- ----------------------------------------------------------------------------------
TOTAL LIABILITIES 2,490.4 2,398.1
- ----------------------------------------------------------------------------------
SHAREHOLDER'S EQUITY
Common Stock (Shares Issued: 1.4) 2.8 2.8
Additional Paid-In Capital 235.2 235.2
Retained Earnings 213.0 181.2
Accumulated Other Comprehensive Income (Loss) (9.4) 42.1
- ----------------------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY 441.6 461.3
- ----------------------------------------------------------------------------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $2,932.0 $2,859.4
- ----------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

72
<PAGE> 76

STATEMENTS OF INCOME
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
REVENUES
Premiums $ 42.8 $ 41.7
Net Investment Income 149.7 157.0
Realized Investment Gains (Losses), Net (.3) 4.9
Policy and Contract Charges 100.7 95.5
Other Income 3.8 3.5
- ------------------------------------------------------------------------------
TOTAL 296.7 302.6
- ------------------------------------------------------------------------------
BENEFITS AND EXPENSES
Benefits to Policyholders 156.2 166.9
Sales and Operating Expenses 47.7 54.5
Amortization of Deferred Policy Acquisition Costs and
Present Value
of Future Profits 30.1 37.7
Dividends and Experience Refunds to Policyholders .9 2.4
- ------------------------------------------------------------------------------
TOTAL 234.9 261.5
- ------------------------------------------------------------------------------
Income Before Income Taxes 61.8 41.1
Income Tax Expense 22.0 14.7
- ------------------------------------------------------------------------------
NET INCOME $ 39.8 $ 26.4
- ------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

73
<PAGE> 77

STATEMENTS OF SHAREHOLDER'S EQUITY AND COMPREHENSIVE INCOME
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

<TABLE>
<CAPTION>
COMPREHENSIVE
SHAREHOLDER'S EQUITY INCOME
-------------------- ---------------
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998 1999 1998
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COMMON STOCK
Beginning and End of Year $ 2.8 $ 2.8
- -------------------------------------------------------------------------------
ADDITIONAL PAID-IN CAPITAL
Beginning and End of Year 235.2 235.2
- -------------------------------------------------------------------------------
RETAINED EARNINGS
Beginning of Year 181.2 154.8
Net Income 39.8 26.4 $ 39.8 $26.4
Dividends to Shareholder (8.0) --
- -------------------------------------------------------------------------------
End of Year 213.0 181.2
- -------------------------------------------------------------------------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Beginning of Year 42.1 40.1
Change for the Year (51.5) 2.0 (51.5) 2.0
- -------------------------------------------------------------------------------
End of Year (9.4) 42.1
- --------------------------------------------------------------------------------------------------
COMPREHENSIVE INCOME (LOSS) $(11.7) $28.4
- --------------------------------------------------------------------------------------------------
TOTAL SHAREHOLDER'S EQUITY $441.6 $461.3
- --------------------------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

74
<PAGE> 78

STATEMENTS OF CASH FLOWS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- --------------------------------------------------------------------------------
<S> <C> <C>
OPERATING ACTIVITIES
Net Income $ 39.8 $ 26.4
Adjustments to Reconcile Net Income to Net Cash Provided by
Operating Activities
Interest Credited to Insurance Contracts 70.0 74.1
Future Policy Benefits (117.8) (115.7)
Capitalization of Policy Acquisition Costs (29.2) (29.0)
Amortization of Deferred Policy Acquisition Costs and
Present Value of Future Profits 30.1 37.7
Deferred Income Taxes 3.4 (2.3)
Net Change in Receivables and Payables 12.2 25.6
Other Assets 8.5 (1.1)
Realized Investment (Gains) Losses, Net .3 (4.9)
Other (2.4) (5.3)
- --------------------------------------------------------------------------------
Net Cash Provided by Operating Activities 14.9 5.5
- --------------------------------------------------------------------------------

INVESTING ACTIVITIES
Proceeds from Sales of Fixed Maturity Securities 137.8 71.9
Proceeds from Maturities or Repayment of Fixed Maturity
Securities 188.7 173.0
Cost of Fixed Maturity Securities Acquired (311.0) (182.5)
Sales (Purchases) of Equity Securities, Net -- (3.0)
Proceeds of Mortgage Loans Sold, Matured or Repaid 43.2 64.3
Cost of Mortgage Loans Acquired (72.6) (62.8)
Sales (Purchases) of Real Estate, Net 2.8 (1.4)
Policy Loans Issued, Net (2.2) (.9)
Sales of Other Invested Assets, Net 2.7 2.4
Sales (Purchases) of Short-Term Investments, Net 21.5 (30.7)
- --------------------------------------------------------------------------------
Net Cash Provided by Investing Activities 10.9 30.3
- --------------------------------------------------------------------------------
FINANCING ACTIVITIES
Deposits to Insurance Contracts 146.9 144.0
Maturities and Withdrawals from Insurance Contracts (163.8) (182.3)
Dividends to Shareholder (8.0) --
- --------------------------------------------------------------------------------
Net Cash Used in Financing Activities (24.9) (38.3)
- --------------------------------------------------------------------------------
Increase (Decrease) in Cash .9 (2.5)
Cash at Beginning of Year -- 2.5
- --------------------------------------------------------------------------------
Cash at End of Year $ .9 $ --
- --------------------------------------------------------------------------------
</TABLE>

The accompanying notes are an integral part of the financial statements.

75
<PAGE> 79

NOTES TO FINANCIAL STATEMENTS

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

NOTE 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS
ReliaStar Life Insurance Company of New York (the Company) is principally
engaged in the business of providing life insurance and related financial
services products. The Company provides and distributes individual life
insurance and annuities; employee benefit products and services; retirement
plans and life and health reinsurance. The Company operates primarily in the
United States and is authorized to conduct business in all 50 states.

BASIS OF PRESENTATION
The Company is a wholly-owned subsidiary of Security-Connecticut Life Insurance
Company (Security-Connecticut) which is a wholly-owned subsidiary of ReliaStar
Life Insurance Company (ReliaStar Life) whose parent is ReliaStar Financial
Corp. (ReliaStar). Effective January 1, 1998, Lincoln Security Life Insurance
Company (Lincoln Security), an affiliate, merged with and into the Company
pursuant to a statutory merger.

USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, the disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.

During 1998, the Company updated certain assumptions affecting deferred policy
acquisition costs and present value of future profits for interest sensitive
products. The change in assumptions reduced the deferred policy acquisition
costs and present value of future profit balances by approximately $3 million in
1998.

During 1998, ReliaStar approved a plan to consolidate its five individual life
insurance and annuity service center operations into one new center. This
consolidation is expected to be substantially complete by the end of the year
2000 and affects approximately 60 positions at the Company's current service
center operation. Estimated costs of $4.3 million (pre-tax) were recorded by the
Company primarily for employee-related termination and non-cancelable lease
contracts costs associated with vacated facilities. The remaining liability as
of December 31, 1999, was $4.1 million and reflects payments of $.2 million made
during 1999.

INVESTMENTS
Fixed maturity securities (bonds and redeemable preferred stocks) are classified
as available-for-sale and are carried at fair value.

Equity securities (common stocks and nonredeemable preferred stocks) are carried
at fair value.

Mortgage loans on real estate are carried at amortized cost less an impairment
allowance for estimated uncollectible amounts.

Real estate acquired through foreclosure is carried at the lower of fair value
less estimated costs to sell or cost.

Short-term investments are carried at amortized cost, which approximates fair
value.

Unrealized investment gains and losses on equity securities and fixed maturity
securities, net of related deferred policy acquisition costs (DAC), present
value of future profits (PVFP) and tax effects, are accounted for as a direct
increase or decrease to the accumulated other comprehensive income (loss)
component of shareholder's equity.

Realized investment gains and losses enter into the determination of net income.
Realized investment gains and losses on sales of securities are determined on
the specific identification method. Write-offs of investments

76
<PAGE> 80

that decline in value below cost on other than a temporary basis and the change
in the allowance for mortgage loans and wholly owned real estate are included
with realized investment gains and losses in the Statements of Income.

The Company records write-offs or allowances for its investments based upon an
evaluation of specific problem investments. The Company periodically reviews all
invested assets (including marketable bonds, private placements, mortgage loans
and real estate investments) to identify investments where the Company has
credit concerns. Investments with credit concerns include those the Company has
identified as problem investments, which are issues delinquent in a required
payment of principal or interest, issues in bankruptcy or foreclosure and
restructured or foreclosed assets. The Company also identifies investments as
potential problem investments, which are investments where the Company has
serious doubts as to the ability of the borrowers to comply with the present
loan repayment terms.

INTEREST RATE SWAP AGREEMENTS
Interest rate swap agreements are used as hedges for asset/liability management
of adjustable rate and short-term invested assets. The Company does not enter
into any interest rate swap agreements for trading purposes. The interest rate
swap transactions involve the exchange of fixed and floating rate interest
payments without the exchange of underlying principal amounts and do not contain
other optional provisions. The Company utilizes the settlement method of
accounting for its interest rate swap agreements whereby the difference between
amounts paid and amounts received or accrued on interest rate swap agreements is
reflected in net investment income.

The characteristics (notional amount, maturity and payment dates) of the
interest rate swap agreements are similar to the characteristics of the
designated hedged assets. Interest rate swaps are carried at fair value, and
changes in fair value are recorded as a direct increase or decrease in the
accumulated other comprehensive income component of shareholder's equity. In the
event an interest rate swap agreement would cease to qualify for hedge
accounting, changes in fair value of the affected swap would be recorded as
income or expense. There were no terminations of interest rate swap agreements
during 1999 and 1998.

POLICY ACQUISITION COSTS
Those costs of acquiring new business, which vary with and are primarily related
to the production of new business, have been deferred to the extent that such
costs are deemed recoverable. Such costs include commissions, certain costs of
policy issuance and underwriting and certain variable agency expenses.

Costs deferred related to traditional life insurance products are amortized over
the premium paying period of the related policies, in proportion to the ratio of
annual premium revenues to total anticipated premium revenues. Such anticipated
premium revenues are estimated using the same assumptions used for computing
liabilities for future policy benefits.

Costs deferred related to universal life-type policies and investment contracts
are amortized over the lives of the policies, in relation to the present value
of estimated gross profits from mortality, investment, surrender and expense
margins.

PRESENT VALUE OF FUTURE PROFITS
The present value of future profits reflects the estimated fair value of
acquired insurance business in force and represents the portion of the
acquisition cost that was allocated to the value of future cash flows from
insurance contracts existing at the date of acquisition. Such value is the
present value of the actuarially determined projected net cash flows from the
acquired insurance contracts. PVFP is amortized over the lives of the acquired
insurance business in force in a manner consistent with amortization of policy
acquisition costs.

77
<PAGE> 81

An analysis of the PVFP asset account is presented below:

<TABLE>
<CAPTION>
(IN MILLIONS) 1999 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
Balance, Beginning of Year $68.2 $79.1
Acquisition -- .8
Imputed Interest 5.3 5.9
Amortization (12.3) (21.3)
Impact of Net Unrealized Investment Losses 18.2 3.7
- ----------------------------------------------------------------------------
BALANCE, END OF YEAR $79.4 $68.2
- ----------------------------------------------------------------------------
</TABLE>

Based on current conditions and assumptions as to future events on acquired
policies in force, the Company expects that the net amortization of the December
31, 1999 PVFP balance will be between 7% and 11% in each of the years 2000
through 2004. The interest rates used to determine the amount of imputed
interest on the unamortized PVFP balance ranged from 5% to 8%.

PROPERTY AND EQUIPMENT
Property and equipment are carried at cost, net of accumulated depreciation of
$3.4 million and $2.9 million at December 31, 1999 and 1998, respectively. The
Company provides for depreciation of property and equipment using straight-line
and accelerated methods over the estimated useful lives of the assets.
Depreciation expense for the years ending December 31, 1999 and 1998, totaled
$.5 million and $.8 million, respectively.

GOODWILL
Goodwill is the excess of the amount paid to acquire a company over the fair
value of the net assets acquired and is amortized on a straight-line basis over
40 years. The carrying value of goodwill is monitored for indicators of
impairment of value. No events or circumstances were identified which warrant
consideration of impairment or a revised estimate of useful lives.

SEPARATE ACCOUNTS
The Company operates separate accounts. The assets and liabilities of the
separate accounts are primarily related to variable annuity, variable life and
401(k) contracts and represent policyholder-directed funds that are separately
administered. The assets (primarily investments) and liabilities (primarily to
contractholders) of each account are clearly identifiable and distinguishable
from other assets and liabilities of the Company. Assets are carried at fair
value. Revenues from these separate account contracts consist primarily of
charges for mortality risk and expenses, cost of insurance, contract
administration and surrender charges. Revenue for these products is recognized
when due.

FUTURE POLICY AND CONTRACT BENEFITS
Liabilities for future policy benefits for traditional life contracts are
calculated using the net level premium method and assumptions as to investment
yields, mortality, withdrawals and dividends. The assumptions are based on
projections of past experience and include provisions for possible unfavorable
deviation. These assumptions are made at the time the contract is issued or, for
purchased contracts, at the date of acquisition.

Liabilities for future policy and contract benefits on universal life-type and
investment contracts are based on the policy account balance.

The liabilities for future policy and contract benefits for group disabled life
reserves and long-term disability reserves are based upon interest rate
assumptions and morbidity and termination rates from published tables, modified
for Company experience.

INCOME TAXES
The provision for income taxes includes amounts currently payable and deferred
income taxes resulting from the cumulative temporary differences in the assets
and liabilities determined on a tax return and financial statement basis.

78
<PAGE> 82

The Company files a consolidated tax return with certain of its affiliates. The
method by which the total consolidated federal income tax for each entity is
allocated to each of the companies is subject to a written agreement approved by
the Company's Board of Directors. Allocation is based upon a separate return
calculation such that each company in the consolidated return pays the same tax
or receives the same refunds it would have paid or received had it consistently
filed separate federal income tax returns. Intercompany tax balances are settled
within a reasonable time after filing of the consolidated federal income tax
returns with the Internal Revenue Service.

PREMIUM REVENUE AND BENEFITS TO POLICYHOLDERS
Recognition of Traditional Life, Group and Annuity Premium Revenue and Benefits
to Policyholders -- Traditional life insurance products include those products
with fixed and guaranteed premiums and benefits and consist principally of term
and whole life insurance policies and certain annuities with life contingencies
(immediate annuities). Life insurance premiums and immediate annuity premiums
are recognized as premium revenue when due. Group insurance premiums are
recognized as premium revenue over the time period to which the premiums relate.
Benefits and expenses are associated with earned premiums so as to result in
recognition of profits over the life of the contracts. This association is
accomplished by means of the provision for liabilities for future policy
benefits and the amortization of DAC and PVFP.

Recognition of Universal Life-Type Contract Revenue and Benefits to
Policyholders -- Universal life-type policies are insurance contracts with terms
that are not fixed and guaranteed. The terms that may be changed could include
one or more of the amounts assessed the policyholder, premiums paid by the
policyholder or interest accrued to policyholder balances. Amounts received as
deposits to such contracts are not reported as premium revenues.

Revenues for universal life-type policies consist of charges assessed against
policy account values for deferred policy loading and the cost of insurance and
policy administration. Policy benefits and claims that are charged to expense
include interest credited to contracts and benefit claims incurred in the period
in excess of related policy account balances.

Recognition of Investment Contract Revenue and Benefits to
Policyholders -- Contracts that do not subject the Company to risks arising from
policyholder mortality or morbidity are referred to as investment contracts.
Retirement plan contracts and certain deferred annuities are considered
investment contracts. Amounts received as deposits for such contracts are not
reported as premium revenues.

Revenues for investment products consist of investment income and charges
assessed against contract account values for policy administration. Contract
benefits that are charged to expense include benefit claims incurred in the
period in excess of related contract balances, and interest credited to contract
balances.

CHANGES IN ACCOUNTING PRINCIPLES
Accounting for Transfers and Servicing of Financial Assets and Extinguishments
of Liabilities.
Effective for transactions occurring on or after January 1, 1998, the Company
adopted those provisions of Statement of Financial Accounting Standards (SFAS)
No. 125, "Accounting for Transfers and Servicing of Financial Assets and
Extinguishments of Liabilities," which were deferred by SFAS No. 127, "Deferral
of the Effective Date of Certain Provisions of FASB Statement No. 125." SFAS No.
125 requires a company to recognize the financial and servicing assets it
controls and the liabilities it has incurred and to derecognize financial assets
when control has been surrendered in accordance with the criteria provided in
SFAS No. 125. The adoption of this standard had no effect on the financial
results of the Company.

Reporting Comprehensive Income
Effective January 1, 1998, the Company adopted SFAS No. 130, "Reporting
Comprehensive Income." SFAS No. 130 establishes standards for the reporting and
display of comprehensive income and its components in a company's full set of
financial statements. Comprehensive income encompasses all changes in
shareholder's equity from transactions and other events and circumstances from
nonowner sources. Adoption of this standard had no effect on the financial
results of the Company.

79
<PAGE> 83

Employers' Disclosures about Pensions and Other Postretirement Benefits
Effective December 31, 1998, the Company adopted SFAS No. 132, "Employers'
Disclosures about Pensions and Other Postretirement Benefits." SFAS No. 132
requires new disclosures relating to a company's pension and other
postretirement benefit plans. Adoption of this standard had no effect on the
financial results of the Company.

Accounting for the Cost of Computer Software Developed or Obtained for Internal
Use
Effective January 1, 1998, the Company adopted Statement of Position (SOP) No.
98-1, "Accounting for the Cost of Computer Software Developed or Obtained for
Internal Use." SOP No. 98-1 provides guidance on accounting for costs associated
with computer software developed or obtained for internal use. Adoption of this
standard did not have a significant effect on the financial results of the
Company

RECLASSIFICATIONS
Certain prior year amounts have been reclassified to conform to current year
presentation.

NOTE 2. INVESTMENTS

FIXED MATURITY SECURITIES
The amortized cost and fair value of investments in fixed maturity securities by
type of investment were as follows:

<TABLE>
<CAPTION>
GROSS UNREALIZED
AMORTIZED ----------------- FAIR
DECEMBER 31, 1999 (IN MILLIONS) COST GAINS (LOSSES) VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States Government and Government Agencies
and Authorities $ 13.1 $ .4 -- $ 13.5
States, Municipalities and Political Subdivisions 1.9 .1 $ (.5) 1.5
Foreign Governments 8.3 .1 (.1) 8.3
Public Utilities 97.9 2.7 (1.0) 99.6
Corporate Securities 984.8 12.6 (23.7) 973.7
Mortgage-Backed/Structured Finance 382.4 4.2 (11.0) 375.6
Redeemable Preferred Stock 1.2 -- (.4) .8
- -------------------------------------------------------------------------------------------------
TOTAL $1,489.6 $20.1 $(36.7) $1,473.0
- -------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
GROSS UNREALIZED
AMORTIZED ----------------- FAIR
DECEMBER 31, 1998 (IN MILLIONS) COST GAINS (LOSSES) VALUE
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
United States Government and Government Agencies
and Authorities $ 24.4 $ 2.2 -- $ 26.6
States, Municipalities and Political Subdivisions 7.4 .3 -- 7.7
Foreign Governments 17.1 1.9 -- 19.0
Public Utilities 105.7 11.0 -- 116.7
Corporate Securities 1,016.4 59.7 $ (7.0) 1,069.1
Mortgage-Backed/Structured Finance 331.7 14.5 (.7) 345.5
Redeemable Preferred Stock 1.2 -- (.2) 1.0
- -------------------------------------------------------------------------------------------------
TOTAL $1,503.9 $89.6 $ (7.9) $1,585.6
- -------------------------------------------------------------------------------------------------
</TABLE>

80
<PAGE> 84

The amortized cost and fair value of fixed maturity securities by contractual
maturity are shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations
with or without call or prepayment penalties.

<TABLE>
<CAPTION>
AMORTIZED FAIR
DECEMBER 31, 1999 (IN MILLIONS) COST VALUE
- -----------------------------------------------------------------------------------
<S> <C> <C>
Maturing in:
One Year or Less $ 58.5 $ 58.2
One to Five Years 537.1 539.4
Five to Ten Years 376.5 369.1
Ten Years or Later 135.1 130.6
Mortgage-Backed/Structured Finance 382.4 375.7
- -----------------------------------------------------------------------------------
TOTAL $1,489.6 $1,473.0
- -----------------------------------------------------------------------------------
</TABLE>

The fair values for the actively traded marketable bonds are determined based
upon the quoted market prices. The fair values for marketable bonds without an
active market are obtained through several commercial pricing services which
provide the estimated fair values. Fair values of privately placed bonds which
are not considered problems are determined using a matrix-based pricing model.
The model considers the current level of risk-free interest rates, current
corporate spreads, the credit quality of the issuer and cash flow
characteristics of the security. Using this data, the model generates estimated
market values which the Company considers reflective of the fair value of each
privately placed bond. Fair values for privately placed bonds which are
considered problems are determined through consideration of factors such as the
net worth of the borrower, the value of collateral, the capital structure of the
borrower, the presence of guarantees and the Company's evaluation of the
borrower's ability to compete in their relevant market.

At December 31, 1999, the largest industry concentration in the private
placement portfolio was mortgage-backed/structured finance, where 22.2% of the
portfolio was invested, and the largest industry concentration in the marketable
bond portfolio was mortgage-backed/structured finance where 26.8% of the
portfolio was invested.

EQUITY SECURITIES
The cost and fair value of investments in equity securities were as follows:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Cost $ 5.3 $ 5.5
Gross Unrealized Gains .3 .4
Gross Unrealized Losses (.1) (.2)
- ------------------------------------------------------------------------------
FAIR VALUE $ 5.5 $ 5.7
- ------------------------------------------------------------------------------
</TABLE>

81
<PAGE> 85

MORTGAGE LOANS ON REAL ESTATE
Investments in mortgage loans on real estate were as follows:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Mortgage Loans, Non-Impaired $316.8 $288.1
Mortgage Loans, Impaired 2.6 2.0
- ------------------------------------------------------------------------------
319.4 290.1
- ------------------------------------------------------------------------------
Allowance for Credit Losses, Beginning of Year (1.2) (1.2)
Increases -- --
Decreases -- --
- ------------------------------------------------------------------------------
Allowances for Credit Losses, End of Year (1.2) (1.2)
- ------------------------------------------------------------------------------
TOTAL $318.2 $288.9
- ------------------------------------------------------------------------------
Average Investment in Impaired Mortgage Loans on Real Estate $ 1.3 $ 1.0
- ------------------------------------------------------------------------------
</TABLE>

The Company does not accrue interest income on impaired mortgage loans when the
likelihood of collection is doubtful, rather income is recognized for these
loans as payments are received. Interest income recognized on impaired mortgage
loans during the years ended December 31, 1999 and 1998, was $.2 million and $.2
million, respectively.

At December 31, 1999, the largest geographic concentration of commercial
mortgage loans was in the Midwest region of the United States, where
approximately 36.1% of the commercial mortgage loan portfolio was invested.

INVESTMENT INCOME
Investment income summarized by type of investment was as follows:

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Fixed Maturity Securities $119.4 $126.7
Equity Securities .3 .1
Mortgage Loans on Real Estate 24.9 23.7
Real Estate .4 .3
Policy Loans 5.7 6.1
Other Invested Assets -- .9
Short-Term Investments 1.9 2.1
- ------------------------------------------------------------------------------
Gross Investment Income 152.6 159.9
Investment Expenses 2.9 2.9
- ------------------------------------------------------------------------------
NET INVESTMENT INCOME $149.7 $157.0
- ------------------------------------------------------------------------------
</TABLE>

82
<PAGE> 86

REALIZED INVESTMENT GAINS AND LOSSES
Net pretax realized investment gains (losses) were as follows:

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Net Gains (Losses) on Sales
Fixed Maturity Securities
Gross Gains $ 3.5 $ 3.9
Gross Losses (1.4) (1.1)
Other 2.8 2.7
- ------------------------------------------------------------------------------
4.9 5.5
- ------------------------------------------------------------------------------
Provisions for Losses
Fixed Maturity Securities (3.5) (.4)
Real Estate (1.7) (.2)
- ------------------------------------------------------------------------------
(5.2) (.6)
- ------------------------------------------------------------------------------
PRETAX REALIZED INVESTMENT GAINS (LOSSES) $ (.3) $ 4.9
- ------------------------------------------------------------------------------
</TABLE>

OTHER INVESTMENT INFORMATION
Invested assets which were nonincome producing (no income received for the 12
months preceding the balance sheet date) were as follows:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Fixed Maturity Securities $ .7 $ .1
Mortgage Loans on Real Estate -- .1
Real Estate 1.6 .7
- ------------------------------------------------------------------------------
TOTAL $ 2.3 $ .9
- ------------------------------------------------------------------------------
</TABLE>

Allowances for losses on investments are reflected on the Balance Sheets as a
reduction of the related assets and were as follows:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Mortgage Loans $ 1.2 $ 1.2
Real Estate .5 1.1
- ------------------------------------------------------------------------------
</TABLE>

The components of net unrealized investment gains (losses) included in the
accumulated other comprehensive income (loss) component of shareholder's equity
are shown below:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Unrealized Investment Gains (Losses) $(14.8) $ 84.5
DAC/PVFP Adjustment .4 (19.7)
Deferred Income Taxes 5.0 (22.7)
- ------------------------------------------------------------------------------
TOTAL $ (9.4) $ 42.1
- ------------------------------------------------------------------------------
</TABLE>

83
<PAGE> 87

The change in net unrealized investment gains and losses included in the change
in accumulated other comprehensive income (loss) consisted of the following:

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Unrealized Investment Gains (Losses) Arising During The
Period(1) $(63.3) $ (.6)
Reclassification Adjustments(2) (1.3) (1.9)
Change in DAC/PVFP Adjustment(3) 13.1 4.5
- ------------------------------------------------------------------------------
TOTAL $(51.5) $ 2.0
- ------------------------------------------------------------------------------
</TABLE>

(1) Net of income taxes totaling $(34.0) million and $(.4) million for 1999 and
1998, respectively.
(2) Net of income taxes totaling $(.7) million and $(1.0) million for 1999 and
1998, respectively.
(3) Net of income taxes totaling $7.0 million and $2.5 million for 1999 and
1998, respectively.

NOTE 3. INCOME TAXES
The income tax liability reported on the Balance Sheets consisted of the
following:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Current Income Taxes $ 5.6 $ 3.9
Deferred Income Taxes 5.2 29.5
- ------------------------------------------------------------------------------
TOTAL $ 10.8 $ 33.4
- ------------------------------------------------------------------------------
</TABLE>

Deferred income taxes reflect the impact for financial statement reporting
purposes of "temporary differences" between the financial statement carrying
amounts and tax bases of assets and liabilities. The "temporary differences"
that give rise to the net deferred tax liability relate to the following:

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Future Policy and Contract Benefits $(33.3) $(43.8)
Net Unrealized Investment Losses (5.0) --
Investment Write-Offs and Allowances (8.2) (.9)
Other (4.3) (6.0)
- ------------------------------------------------------------------------------
Gross Deferred Tax Asset (50.8) (50.7)
- ------------------------------------------------------------------------------
Deferred Policy Acquisition Costs 26.2 24.0
Present Value of Future Profits 27.8 30.2
Net Unrealized Investment Gains -- 16.2
Other 2.0 9.8
- ------------------------------------------------------------------------------
Gross Deferred Tax Liability 56.0 80.2
- ------------------------------------------------------------------------------
NET DEFERRED TAX LIABILITY $ 5.2 $ 29.5
- ------------------------------------------------------------------------------
</TABLE>

The provision for income taxes reported on the Statements of Income consisted of
the following:

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Currently Payable $ 18.6 $ 17.0
Deferred 3.4 (2.3)
- ------------------------------------------------------------------------------
TOTAL $ 22.0 $ 14.7
- ------------------------------------------------------------------------------
</TABLE>

84
<PAGE> 88

The difference between the U.S. federal income tax rate and the consolidated tax
provision rate is summarized as follows:

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Statutory Tax Rate 35.0% 35.0%
Other .6 .8
- ------------------------------------------------------------------------------
EFFECTIVE TAX RATE 35.6% 35.8%
- ------------------------------------------------------------------------------
</TABLE>

Federal income tax regulations allowed certain special deductions for 1983 and
prior years which are accumulated in a memorandum tax account designated as
"policyholders' surplus." Generally, this policyholders' surplus account will
become subject to tax at the then current rates only if the accumulated balance
exceeds certain maximum limitations or if certain cash distributions are deemed
to be paid out of the account. At December 31, 1999, the Company had accumulated
approximately $11.3 million in its separate policyholders' surplus accounts.
Deferred taxes have not been provided on this temporary difference.

The Internal Revenue Service has completed its review of the Company's tax
return for all years through 1995.

Cash paid for federal income taxes was $16.9 million and $12.8 million for the
years ended December 31, 1999 and 1998, respectively.

NOTE 4. EMPLOYEE BENEFIT PLANS

SUCCESS SHARING PLAN AND ESOP
The Success Sharing Plan and ESOP (Success Sharing Plan) was designed to
increase employee ownership and reward employees when certain ReliaStar
performance objectives are met. Essentially all employees are eligible to
participate in the Success Sharing Plan. The Success Sharing Plan has both
qualified and nonqualified components.

The nonqualified component is equal to 25% of the annual award and is paid in
cash to employees. The qualified component is equal to 75% of the annual award
which is contributed to the ESOP portion of the Success Sharing Plan.

In addition, the Success Sharing Plan has a 401(k) feature whereby participants
may elect to contribute a percentage of their eligible earnings to the plan.
Beginning in 1999, the Company matched participants' 401(k) contributions up to
6% of eligible earnings.

Costs charged to expense for the Success Sharing Plan were $.5 million and $.5
million for the years ended December 31, 1999 and 1998, respectively.

PENSION AND OTHER POSTRETIREMENT BENEFITS
The Company participates in funded and unfunded noncontributory defined benefit
retirement plans, sponsored by ReliaStar Life, which provide benefits to all
employees upon retirement. Effective December 31, 1998, the qualified defined
benefit retirement plan was amended to suspend the accrual of additional
benefits for future services. Eligible employees retain all of their accrued
benefits as of December 31, 1998, which will be paid monthly at retirement
according to the provisions of the plan. Employees meeting certain age and
service requirements will receive certain transition benefits until retirement.
A curtailment gain was recorded in 1998 to reflect the impact of this plan
amendment and the impact of employee reductions resulting from the transfer of
certain accident and health administrative operations to a third party.

The Company provides certain health care and life insurance benefits to retired
employees and their eligible dependents through plans sponsored by ReliaStar
Life. The postretirement health care plan is contributory, with retiree
contribution levels adjusted annually; the life insurance plan provides a flat
amount of noncontributory coverage and optional contributory coverage.

The net periodic pension benefit allocated to the Company for all plans was $.3
million and $.3 million for the years ended December 31, 1999 and 1998,
respectively.

85
<PAGE> 89

STOCK INCENTIVE PLAN
Officers and key employees of the Company participate in the stock incentive
plans of ReliaStar. ReliaStar applies Accounting Principles Board Opinion No. 25
and related interpretations in accounting for its plans. Accordingly, the
Company has recorded no compensation expense for its stock-based compensation
plans other than for restricted stock and performance-based awards.

NOTE 5. UNPAID ACCIDENT AND HEALTH CLAIMS
The change in the liability for unpaid accident and health claims and claim
adjustment expenses is summarized as follows:

<TABLE>
<CAPTION>
(IN MILLIONS) 1999 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
Balance at January 1 $13.6 $ 9.3
Less Reinsurance Recoverables 9.1 3.1
- ----------------------------------------------------------------------------
Net Balance at January 1 4.5 6.2
Incurred Related to:
Current Year .5 .9
Prior Years .7 .8
- ----------------------------------------------------------------------------
Total Incurred 1.2 1.7
Paid Related to:
Current Year .3 .4
Prior Years .5 3.0
- ----------------------------------------------------------------------------
Total Paid .8 3.4
Net Balance at December 31 4.9 4.5
Plus Reinsurance Recoverables 10.9 9.1
- ----------------------------------------------------------------------------
BALANCE AT DECEMBER 31 $15.8 $13.6
- ----------------------------------------------------------------------------
</TABLE>

The liability for unpaid accident and health claims and claim adjustment
expenses is included in Future Policy and Contract Benefits on the Balance
Sheets.

NOTE 6. SHAREHOLDER'S EQUITY

SHARE DATA
The authorized capital stock of the Company consists of 1,377,863 common shares
with a par value of $2.00 per share, all of which are issued and outstanding.

DIVIDEND RESTRICTIONS
The Company's ability to pay cash dividends to its parent is restricted by law
or subject to approval of the insurance regulatory authorities of the State of
New York. These authorities recognize only statutory accounting practices for
determining the ability of an insurer to pay dividends to its shareholders.

Under New York insurance law regulating the payment of dividends by the Company,
any such payment must be paid solely from the earned surplus of the Company and
advance notice thereof must be provided to the Superintendent of the New York
Department of Insurance (the Superintendent). Earned surplus means the earned
surplus as determined in accordance with statutory accounting practices
(unassigned funds), less the amount of such earned surplus which is attributable
to unrealized capital gains. Further, without approval of the Superintendent,
the Company may not pay in any calendar year any dividend which, when combined
with other dividends paid within the preceding 12 months, exceeds the lesser of
(i) 10% of the Company's statutory surplus at the prior year end or (ii) 100% of
the Company's statutory net investment income for the prior calendar year.

86
<PAGE> 90

STATUTORY SURPLUS AND NET INCOME
Net income of the Company, as determined in accordance with statutory accounting
practices, was $30.9 million and $19.6 million for 1999 and 1998, respectively.
The Company's statutory capital and surplus was $221.8 million and $202.4
million at December 31, 1999 and 1998, respectively.

NOTE 7. REINSURANCE

The Company is a member of reinsurance associations established for the purpose
of ceding the excess of life insurance over retention limits.

Reinsurance contracts do not relieve the Company from its obligations to
policyholders. Failure of reinsurers to honor their obligations could result in
losses to the Company; consequently, allowances are established for amounts
deemed uncollectible. The amount of the allowance for uncollectible reinsurance
receivables was immaterial at December 31, 1999 and 1998. The Company evaluates
the financial condition of its reinsurers and monitors concentrations of credit
risk to minimize its exposure to significant losses from reinsurer insolvencies.

The Company's retention limit is $300,000 per insurable life for individual
coverage. For group coverage and reinsurance assumed, the retention is $300,000
per life with per occurrence limitations, subject to certain maximums.

As of December 31, 1999, approximately 59% of the Company's reinsurance ceded,
based on inforce, was ceded to one reinsurer. As of December 31, 1999, $3.8
billion of life insurance in force was ceded to other companies. The Company had
assumed $2.7 billion of life insurance in force as of December 31, 1999.

The effect of reinsurance on premiums and recoveries was as follows:

<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31 (IN MILLIONS) 1999 1998
- ------------------------------------------------------------------------------
<S> <C> <C>
Direct Premiums $ 71.5 $ 76.7
Reinsurance Assumed 2.4 2.5
Reinsurance Ceded (31.1) (37.5)
- ------------------------------------------------------------------------------
NET PREMIUMS $ 42.8 $ 41.7
- ------------------------------------------------------------------------------
REINSURANCE RECOVERIES $ 18.0 $ 18.6
- ------------------------------------------------------------------------------
</TABLE>

NOTE 8. RELATED PARTY TRANSACTIONS

The Company and its affiliates have entered into agreements whereby affiliates
and the Company provide certain management, administrative, legal, and other
services for each other. The net amounts billed to the Company were $25.3
million and $20.5 million in 1999 and 1998, respectively. The net costs
allocated to the Company under these agreements may not be indicative of costs
the Company might incur if these services were not provided by the Company's
affiliates. During 1999, the Company paid cash dividends of $8.0 million to
Security-Connecticut.

ReliaStar Life and Security-Connecticut reinsure certain life policies written
by the Company. Premiums ceded under these agreements were $14.4 million and
$15.6 million for the years ended December 31, 1999 and 1998, respectively; and
the net amount recoverable by the Company under these agreements were $14.1
million and $10.5 million as of December 31, 1999 and 1998, respectively.

NOTE 9. COMMITMENTS AND CONTINGENCIES

LITIGATION
The Company is a defendant in a number of lawsuits arising out of the normal
course of its business. Some of the claims may seek to be granted class action
status and many of the claims seek both compensatory and punitive damages. In
the opinion of management, the ultimate resolution of such litigation will not
have a material adverse impact to the financial position of the Company. It
should be noted, however, that a number

87
<PAGE> 91

of financial services companies have been subjected to significant awards in
connection with punitive damages claims and the Company can make no assurances
that it will not be subjected to such an award.

FINANCIAL INSTRUMENTS
The Company is a party to financial instruments with on and off-balance-sheet
risk in the normal course of business to reduce its exposure to fluctuations in
interest rates. These financial instruments include commitments to extend credit
and interest rate swaps. Those instruments involve, to varying degrees, elements
of credit, interest rate or liquidity risk in excess of the amount recognized in
the Balance Sheets.

The Company's exposure to credit loss in the event of nonperformance by the
other party to the financial instrument for commitments to extend credit is
represented by the contractual amount of those instruments. The Company uses the
same credit policies in making commitments and conditional obligations as it
does for on-balance-sheet instruments. For interest rate swap transactions, the
contract or notional amounts do not represent exposure to credit loss. For
swaps, the Company's exposure to credit loss is limited to those swaps where the
Company has an unrealized gain.

Unless otherwise noted, the Company does not require collateral or other
security to support financial instruments with credit risk.

<TABLE>
<CAPTION>
DECEMBER 31 (IN MILLIONS) 1999 1998
- ---------------------------------------------------------------------------
<S> <C> <C>
CONTRACT OR NOTIONAL AMOUNT
Financial Instruments Whose Contract Amounts Represent
Credit Risk
Commitments to Extend Credit $5.9 $16.2
Financial Instruments Whose Notional or Contract Amounts
Exceed the
Amount of Credit Risk
Interest Rate Swap Agreements 50.0 62.0
- ---------------------------------------------------------------------------
</TABLE>

Commitments to Extend Credit -- Commitments to extend credit are legally binding
agreements to lend to a customer. Commitments generally have fixed expiration
dates or other termination clauses and may require payment of a fee. They
generally may be terminated by the Company in the event of deterioration in the
financial condition of the borrower. Since some of the commitments are expected
to expire without being drawn upon, the total commitment amounts do not
necessarily represent future liquidity requirements. The Company evaluates each
customer's creditworthiness on a case-by-case basis.

Interest Rate Swap Agreements -- The Company enters into interest rate swap
agreements to manage interest rate exposure. The primary reason for the interest
rate swap agreements is to extend the duration of adjustable rate investments.
Interest rate swap transactions generally involve the exchange of fixed and
floating rate interest payment obligations without the exchange of the
underlying principal amounts. Changes in market interest rates impact income
from adjustable rate investments and have an opposite (and approximately
offsetting) effect on the reported income from the swap portfolio. The risks
under interest rate swap agreements are generally similar to those of futures
contracts. Notional principal amounts are often used to express the volume of
these transactions but do not represent the much smaller amounts potentially
subject to credit risk. The amount subject to credit risk is approximately equal
to the unrealized gain on the agreements. At December 31, 1999, there was no
unrealized gain on the agreements.

LEASES
The Company has operating leases for office space and certain computer
processing and other equipment. Rental expense for these items was $1.8 million
for both 1999 and 1998.

Future minimum aggregate rental commitments at December 31, 1999, for operating
leases were as follows:

<TABLE>
<CAPTION>
(IN MILLIONS)
- ---------------------------------------------------------------------------------------
<S> <C>
2000 - $1.8 2003 - $.7
2001 - $1.8 2004 - $.7
2002 - $1.2 2005 and thereafter - $.7
- ---------------------------------------------------------------------------------------
</TABLE>

88
<PAGE> 92

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following disclosures are made in accordance with the requirements of SFAS
No. 107, "Disclosures about Fair Value of Financial Instruments." SFAS No. 107
requires disclosure of fair value information about financial instruments,
whether or not recognized in the balance sheet, for which it is practicable to
estimate that value. In cases where quoted market prices are not available, fair
values are based on estimates using present value or other valuation techniques.
Those techniques are significantly affected by the assumptions used, including
the discount rate and estimates of future cash flows. In that regard, the
derived fair value estimates, in many cases, could not be realized in immediate
settlement of the instrument.

SFAS No. 107 excludes certain financial instruments and all nonfinancial
instruments from its disclosure requirements. Accordingly, the aggregate fair
value amounts presented do not represent the underlying value of the Company.

The fair value estimates presented herein are based on pertinent information
available to Management as of December 31, 1999 and 1998, respectively. Although
Management is not aware of any factors that would significantly affect the
estimated fair value amounts, such amounts have not been comprehensively
revalued for purposes of these financial statements since those dates;
therefore, current estimates of fair value may differ significantly from the
amounts presented herein.

The following methods and assumptions were used by the Company in estimating its
fair value disclosures for financial instruments:

FIXED MATURITY SECURITIES -- The estimated fair value disclosures for fixed
maturity securities satisfy the fair value disclosure requirements of SFAS No.
107 (see Note 2).

EQUITY SECURITIES -- Fair value equals carrying value as these securities are
carried at quoted market value.

MORTGAGE LOANS ON REAL ESTATE -- The fair values for mortgage loans on real
estate are estimated using discounted cash flow analyses and rates currently
being offered in the marketplace for similar loans to borrowers with similar
credit ratings. Loans with similar characteristics are aggregated for purposes
of the calculations.

CASH, SHORT-TERM INVESTMENTS AND POLICY LOANS -- The carrying amounts for these
assets approximate the assets' fair values.

OTHER FINANCIAL INSTRUMENTS REPORTED AS ASSETS -- The carrying amounts for these
financial instruments (primarily premiums and other accounts receivable and
accrued investment income) approximate those assets' fair values.

INVESTMENT CONTRACT LIABILITIES -- The fair value for deferred annuities was
estimated to be the amount payable on demand at the reporting date, as those
investment contracts have no defined maturity and are similar to a deposit
liability. The amount payable at the reporting date was calculated as the
account balance less applicable surrender charges.

The fair values for supplementary contracts without life contingencies and
immediate annuities were estimated using discounted cash flow analyses. The
discount rate was based upon treasury rates plus a pricing margin.

The carrying amounts reported for other investment contracts, which includes
retirement plan deposits, approximate those liabilities' fair value.

CLAIM AND OTHER DEPOSIT FUNDS -- The carrying amounts for claim and other
deposit funds approximate the liabilities' fair value.

OTHER FINANCIAL INSTRUMENTS REPORTED AS LIABILITIES -- The carrying amounts for
other financial instruments (primarily normal payables of a short-term nature)
approximate those liabilities' fair values.

89
<PAGE> 93

The carrying amounts and estimated fair values of the Company's financial
instruments were as follows:

<TABLE>
<CAPTION>
1999 1998
-------------------- --------------------
CARRYING FAIR CARRYING FAIR
DECEMBER 31 (IN MILLIONS) AMOUNT VALUE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
FINANCIAL INSTRUMENTS RECORDED AS ASSETS
Fixed Maturity Securities $1,473.0 $1,473.0 $1,585.6 $1,585.6
Equity Securities 5.5 5.5 5.7 5.7
Mortgage Loans on Real Estate
Commercial 266.8 265.2 247.1 262.8
Residential and Other 51.4 51.2 41.8 42.8
Policy Loans 83.8 83.8 81.6 81.6
Cash and Short-Term Investments 15.3 15.3 35.9 35.9
Other Financial Instruments Recorded as Assets 33.4 33.4 39.1 39.1
FINANCIAL INSTRUMENTS RECORDED AS LIABILITIES
Investment Contracts
Deferred Annuities (654.0) (635.8) (747.2) (729.1)
Supplementary Contracts and Immediate
Annuities (31.4) (31.6) (31.9) (33.1)
Other Investment Contracts (11.8) (11.8) (11.8) (11.8)
Claim and Other Deposit Funds (9.3) (9.3) (7.1) (7.1)
Other Financial Instruments Recorded as
Liabilities (39.1) (39.1) (51.0) (51.0)
- ------------------------------------------------------------------------------------------------
</TABLE>

Fair value estimates are made at a specific point in time, based on relevant
market information and information about the financial instrument. These
estimates do not reflect any premium or discount that could result from offering
for sale at one time the Company's holdings of a particular financial
instrument. Because no market exists for a significant portion of the Company's
financial instruments, fair value estimates are based on judgments regarding
future expected loss experience, current economic conditions, risk
characteristics of various financial instruments and other factors. These
estimates are subjective in nature and involve uncertainties and matters of
significant judgment and, therefore, cannot be determined with precision.
Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial
instruments without attempting to estimate the value of anticipated future
business and the value of assets and liabilities that are not considered
financial instruments. In addition, the tax ramifications related to the
realization of the unrealized gains and losses can have a significant effect on
fair value estimates and have not been considered in the estimates.

90
<PAGE> 94

APPENDIX A

THE FIXED ACCOUNT

The Fixed Account consists of all of our assets other than those in our
separate accounts. We have complete ownership and control of all of the assets
of the Fixed Account.

Because of exemptions and exclusions contained in the Securities Act of
1933 and the Investment Company Act of 1940, the Fixed Account has not been
registered under these acts. Neither the Fixed Account nor any interest in it is
subject to the provisions of these acts and as a result the SEC has not reviewed
the disclosures in this Prospectus relating to the Fixed Account. However,
disclosures relating to the Fixed Account are subject to generally applicable
provisions of the federal securities laws relating to the accuracy and
completeness of statements made in prospectuses.

We guarantee both principal and interest on amounts credited to the Fixed
Account. We credit interest at an effective annual rate of at least 4%,
independent of the investment experience of the Fixed Account. From time to
time, we may guarantee interest at a rate higher than 4%.

ANY INTEREST CREDITED TO AMOUNTS ALLOCATED TO THE FIXED ACCOUNT IN EXCESS
OF 4% PER YEAR WILL BE DETERMINED AT OUR SOLE DISCRETION. YOU ASSUME THE RISK
THAT INTEREST CREDITED TO THE FIXED ACCOUNT MAY NOT EXCEED THE MINIMUM GUARANTEE
OF 4% FOR A GIVEN YEAR.

We do not use a specific formula for determining excess interest credits.
However, we consider the following:

- General economic trends,
- Rates of return currently available on our investments,
- Rates of return anticipated in our investments, regulatory and tax
factors, and
- Competitive factors.

We are not aware of any statutory limitations to the maximum amount of
interest we may credit and our Board of Directors has not set any limitations.

The Fixed Accumulation Value of the Policy is the sum of the Net Premiums
credited to it in the Fixed Account. It is increased by transfers and Loan
Amounts from the Variable Account, and interest credits. It is decreased by
Monthly Deductions and partial withdrawals taken from it in the Fixed Account
and transfers to the Variable Account. The Fixed Accumulation Value will be
calculated at least monthly on the monthly anniversary date.

You may transfer all or part of your Fixed Accumulation Value to the
Sub-Accounts of the Variable Account, subject to the following transfer
limitations:

- The request to transfer must be postmarked no more than 30 days before
the Policy Anniversary and no later than 30 days after the Policy
Anniversary. Only one transfer is allowed during this period.
- The Fixed Accumulation Value after the transfer must be at least equal to
the Loan Amount.
- No more than 50% of the Fixed Accumulation Value (minus any Loan Amount)
may be transferred unless the balance, after the transfer, would be less
than $1,000. If the balance would be less than $1,000, the full Fixed
Accumulation Value (minus any Loan Amount) may be transferred.
- You must transfer at least:

-- $500, or
-- the total Fixed Accumulation Value (minus any Loan Amount) if less
than $500.

We make the Monthly Deduction from your Fixed Accumulation Value in
proportion to the total Accumulation Value of the Policy.

The Surrender Charge described in the Prospectus applies to the total
Accumulation Value, which includes the Fixed Accumulation Value. If the Owner
surrenders the Policy for its Cash Surrender Value, the Fixed Accumulation Value
will be reduced by any applicable Surrender Charge, any Loan Amount and unpaid
Monthly Deductions applicable to the Fixed Account.
A-1
<PAGE> 95

APPENDIX B

CALCULATION OF ACCUMULATION VALUE

The Accumulation Value of the Policy is equal to the sum of the Variable
Accumulation Value plus the Fixed Accumulation Value.

VARIABLE ACCUMULATION VALUE

The Variable Accumulation Value is the total of your values in each
Sub-Account. The value for each Sub-Account is equal to:

1 multiplied by 2, where:

Is your current number of Accumulation Units (described below).

Is the current Unit Value (described below).

The Variable Accumulation Value will vary from Valuation Date to Valuation
Date (described below) reflecting changes in 1 and 2 above.

ACCUMULATION UNITS. When transactions are made which affect the Variable
Accumulation Value, dollar amounts are converted to Accumulation Units. The
number of Accumulation Units for a transaction is found by dividing the dollar
amount of the transaction by the current Unit Value.

The number of Accumulation Units for a Sub-Account increases when:

- Net Premiums are credited to that Sub-Account; or

- Transfers from the Fixed Account or other Sub-Accounts are credited to
that Sub-Account.

The number of Accumulation Units for a Sub-Account decreases when:

- You take out a Policy loan from that Sub-Account;

- You take a partial withdrawal from that Sub-Account;

- We take a portion of the Monthly Deduction from that Sub-Account; or

- Transfers are made from that Sub-Account to the Fixed Account or other
Sub-Accounts.

UNIT VALUE. The Unit Value for a Sub-Account on any Valuation Date is equal
to the previous Unit Value times the Net Investment Factor for that Sub-Account
(described below) for the Valuation Period (described below) ending on that
Valuation Date. The Unit Value was initially set at $10 when the Sub-Account
first purchased Fund shares.

NET INVESTMENT FACTOR. The Net Investment Factor is a number that reflects
charges to the Policy and the investment performance during a Valuation Period
of the Fund in which a Sub-Account is invested. If the Net Investment Factor is
greater than one, the Unit Value is increased. If the Net investment Factor is
less than one, the Unit Value is decreased. The Net Investment Factor for a
Sub-Account is determined by dividing 1 by 2.

(1/2), where:

Is the result of:

- The net asset value per share of the Fund shares in which the Sub-Account
invests, determined at the end of the current Valuation Period;

B-1
<PAGE> 96

- Plus the per share amount of any dividend or capital gain distributions
made on the Fund shares in which the Sub-Account invests during the
current Valuation Period;

- Plus or minus a per share charge or credit for any taxes reserved which
we determine has resulted from the investment operations of the
Sub-Account and to be applicable to the Policy.

2
Is the result of:

- The net asset value per share of the Fund shares held in the Sub-Account,
determined at the end of the last prior Valuation Period;

- Plus or minus a per share charge or credit for any taxes reserved for
during the last prior Valuation Period which we determine resulted from
the investment operations of the Sub-Account and was applicable to the
Policy.

VALUATION DATE; VALUATION PERIOD. A Valuation Date is each day the New York
Stock Exchange is open for business except for a day that a Sub-Account's
corresponding Fund does not value its shares. A Valuation Period is the period
between two successive Valuation Dates, commencing at the close of business of a
Valuation Date and ending at the close of business on the next Valuation Date.

FIXED ACCUMULATION VALUE

The Fixed Accumulation Value on the Policy Date is your Net Premium
credited to the Fixed Account on that date minus the Monthly Deduction
applicable to the Fixed Accumulation Value for the first Policy Month.

After the Policy Date, the Fixed Accumulation Value is calculated as:

1 + 2 + 3 + 4 - 5 - 6, where:

1
Is the Fixed Accumulation Value on the preceding Monthly Anniversary, plus
interest from the Monthly Anniversary to the date of the calculation.

2
Is the total of your Net Premiums credited to the Fixed Account since the
preceding Monthly Anniversary, plus interest from the date premiums are credited
to the date of the calculation.

3
Is the total of your transfers from the Variable Account to the Fixed Account
since the preceding Monthly Anniversary, plus interest from the date of transfer
to the date of the calculation.

4
Is the total of your Loan Amount transferred from the Variable Account since the
preceding Monthly Anniversary.

5
Is the total of your transfers to the Variable Account from the Fixed Account
since the preceding Monthly Anniversary, plus interest from the date of transfer
to the date of the calculation.

6
Is the total of your partial withdrawals from the Fixed Account since the
preceding Monthly Anniversary, plus interest from the date of withdrawal to the
date of the calculation.

If the date of the calculation is a Monthly Anniversary, we also reduce the
Fixed Accumulation Value by the applicable Monthly Deduction for the Policy
Month following the Monthly Anniversary.

The minimum interest rate applied in the calculation of the Fixed
Accumulation Value is an effective annual rate of 4%. Interest in excess of the
minimum rate may be applied in the calculation of your Fixed Accumulation Value
in a manner which our Board of Directors determines.
B-2
<PAGE> 97

APPENDIX C

MONTHLY AMOUNT CHARGE
PER $1,000 OF FACE AMOUNT

<TABLE>
<CAPTION>
AVERAGE AGE OF MONTHLY AMOUNT CHARGE AVERAGE AGE OF MONTHLY AMOUNT CHARGE PER
JOINT INSUREDS PER $1,000 OF FACE AMOUNT JOINT INSUREDS $1,000 OF FACE AMOUNT
- -------------- ------------------------- -------------- -------------------------
<S> <C> <C> <C>
0-26 $0.045 56 0.134
27 0.046 57 0.143
28 0.046 58 0.153
29 0.047 59 0.162
30 0.048 60 0.172
31 0.049 61 0.183
32 0.050 62 0.193
33 0.051 63 0.204
34 0.053 64 0.214
35 0.055 65 0.225
36 0.057 66 0.238
37 0.059 67 0.253
38 0.061 68 0.271
39 0.063 69 0.292
40 0.065 70 0.316
41 0.067 71 0.345
42 0.069 72 0.379
43 0.071 73 0.418
44 0.073 74 0.465
45 0.075 75 0.520
46 0.077 76 0.579
47 0.080 77 0.642
48 0.083 78 0.710
49 0.087 79 0.781
50 0.092 80 0.855
51 0.097 81 0.934
52 0.102 82 1.014
53 0.109 83 1.098
54 0.116 84 1.183
55 0.125 85 1.270
</TABLE>

C-1
<PAGE> 98

UNDERTAKINGS TO FILE REPORTS

Subject to the terms and conditions of Section 15(d) of the Securities and
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.

RULE 484 UNDERTAKING

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

"REASONABLENESS" REPRESENTATION PURSUANT TO 26(e)(2)(A)

OF THE INVESTMENT COMPANY ACT OF 1940

Depositor represents that the fees and charges deducted under the flexible
premium variable life insurance policy, in the aggregate, are reasonable in
relation to the services rendered, the expenses expected to be incurred, and the
risks assumed by ReliaStar Life Insurance Company of New York.

<PAGE> 99

SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of
1940, Registrant certifies that it meets the requirement of Securities Act Rule
485(b) for the effectiveness of this Registration Statement and has caused this
Post-Effective Amendment No. 2 to this Registration Statement to be signed on
its behalf, in the City of Minneapolis, and State of Minnesota, on the 14th day
of April, 2000.

RELIASTAR LIFE INSURANCE

COMPANY OF NEW YORK

VARIABLE LIFE SEPARATE ACCOUNT I

(Registrant)

By: RELIASTAR LIFE INSURANCE

COMPANY OF NEW YORK

(Depositor)

By: /s/ ROBERT C. SALIPANTE

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

Robert C. Salipante

Vice Chairman

As required by the Securities Act of 1933, Depositor has caused this
Post-Effective Amendment No. 2 to this Registration Statement to be signed on
its behalf, in the City of Minneapolis and State of Minnesota, on this 14th day
of April, 2000.

RELIASTAR LIFE INSURANCE

COMPANY OF NEW YORK

(Depositor)

By: /s/ ROBERT C. SALIPANTE

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

Robert C. Salipante

Vice Chairman

As required by the Securities Act of 1933, this Post-Effective Amendment
No. 2 to this Registration Statement has been signed on this 14th day of April,
2000 by the following directors and officers of Depositor in the capacities
indicated:

<TABLE>
<C> <S>
/s/ ROBERT C. SALIPANTE Vice Chairman
- --------------------------------------------------------
Robert C. Salipante

/s/ JAMES R. MILLER Vice President, Treasurer and Controller
- --------------------------------------------------------
James R. Miller
</TABLE>

Stephen A. Carb

R. Michael Conley

Richard R. Crowl

James R. Gelder

Ambassador Ulric Haynes, Jr.

Wayne R. Huneke

Mark S. Jordahl

Kenneth U. Kuk

James R. Miller

Fioravante G. Perrotta

Robert C. Salipante

John G. Turner

Charles B. Updike

Ross M. Weale

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

Jeffrey A. Proulx, by signing his name hereto, does hereby sign this document on
behalf of each of the above-named directors of ReliaStar Life Insurance Company
of New York pursuant to powers of attorney duly executed by such persons.

/s/ JEFFREY A. PROULX

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

Jeffrey A. Proulx, Attorney-In-Fact

<PAGE> 100

PART II

CONTENTS OF REGISTRATION STATEMENT

This Registration Statement comprises the following papers and documents:

The Facing Sheet.

The general form of Prospectus, consisting of 94 pages.

Undertakings to file reports.

Rule 484 Undertaking.

"Reasonableness" representation pursuant to Section 26(e)(2)(A) of the
Investment Company Act of 1940.

The signatures.

Written consents of the following persons:

1. Jeffrey A. Proulx -- Filed as part of EX-99.2.

2. Steve P. West, FSA, MAAA -- Filed as part of EX-99.C6.

3. Independent Auditors' Consent -- Filed as part of EX-99.C1.

The following exhibits:

1. The following exhibits correspond to those required by
Paragraph A of the instructions as to exhibits in Form
N-8B-2:
A. (1) (a) Resolution of Board of Directors of ReliaStar Life Insurance
Company of New York ("RLICNY") establishing the RLICNY
Variable Life Separate Account I.(1)
(b) Resolution of Board of Directors of RLICNY changing the name
of RLICNY Separate Account I.(2)
(2) Not applicable.
(3) (a) Form of General Distributor Agreement between Washington
Square Securities Inc. and RLICNY.(3)
(b) Specimens of WSSI Selling Agreements.(4)
(4) Not applicable.
(5) (a) Form of Policy available (together with available Policy
riders).(5)
(b) Policy Illustration.
(6) (a) Amended Charter of RLICNY.(2)
(b) Amended Bylaws of RLICNY.(2)
(7) Not applicable.
(8) (a) Participation Agreement with Fidelity's Variable Insurance
Products Fund and Fidelity Distributors Corporation and
Amendment No. 1.(1)
(b) Form of Amendment Nos. 2 and 3 to Participation Agreement
with Fidelity's Variable Insurance Products Fund and
Fidelity Distributors Corporation.(2)
(c) Form of Amendment No. 4 to Participation Agreement among
Depositor and Fidelity's Variable Insurance Products Fund
and Fidelity Distributors Corporation.(6)
(d) Participation Agreement with Fidelity's Variable Insurance
Products Fund II and Fidelity Distributors Corporation and
Form of Amendment No. 1.(1)
(e) Form of Amendment No. 4 to Participation Agreement among
Depositor and Fidelity's Variable Insurance Products Fund II
and Fidelity Distributors Corporation.(6)
(f) Form of Amendment Nos. 2 and 3 to Participation Agreement
with Fidelity's Variable Insurance Products Fund II and
Fidelity Distributors Corporation.(2)
(g) Form of Service Contract with Fidelity Distributors
Corporation.(3)
</TABLE>

II-1
<PAGE> 101

<TABLE>
<C> <C> <S> <C>
(h) Form of Service Agreement with Fidelity Investments
Institutional Operations Company, Inc.(3)
(i) Form of Participation Agreement with Putnam Variable Trust
(formerly known as Putnam Capital Manager Trust) and Putnam
Mutual Funds Corp.(3)
(j) Form of Amendment No. 1 to Participation Agreement with
Putnam Variable Trust and Putnam Mutual Funds Corp.(2)
(k) Form of Amendment No. 2 to Participation Agreement among
Depositor and Putnam Variable Trust and Putnam Mutual Funds
Corp.(6)
(l) Form of Management Services Agreement with ReliaStar Life
Insurance Company.(1)
(m) Form of Amendment No. 1 to Participation Agreement by and
between Depositor and Fred Alger Management, Inc.(6)
Exhibit -- Form of Amendment to Participation Agreement(7)
(n) Form of Participation Agreement by and between RLICNY and
Fred Alger Management, Inc.(4)
(o) Form of Participation Agreement by and between RLICNY and
Janus Aspen Series.(4)
(p) Form of Amendment No. 1 to Participation Agreement by and
between Depositor and Janus Aspen Series.(6)
(q) Form of Participation Agreement by and between RLICNY,
Neuberger Berman Advisers Management Trust, Advisers
Managers Trust and NBMI.(4)
(r) Form of Amendment No. 1 to Participation Agreement by and
among Depositor, Neuberger Berman Advisers Management Trust,
Advisers Managers Trust and Neuberger Berman Management
Inc.(6)
(s) Form of Participation Agreement by and between RLICNY and
OpCap Advisors.(4)
(t) Amendment No. 1 to Participation Agreement by and between
Depositor and OpCap Advisors.(6)
(u) Form of Service Agreement by and RLICNY and Fred Alger
Management, Inc.(4)
(v) Form of Service Agreement by and between RLICNY and Janus
Capital Corporation.(4)
(w) Form of Service Agreement by and between RLICNY and
Neuberger Berman Management Incorporated ("NBMI").(4)
(x) Form of Service Agreement by and between RLICNY and OpCap
Advisors.(4)
(y) Form of Management Services Agreement with ReliaStar Life
Insurance Company.(1)
(z) Form of Participation Agreement by and between AIM Variable
Insurance Funds, Inc., A I M Distributors, Inc., and
ReliaStar Life Insurance Company of New York.(7)
(aa) Form of Administrative Services Agreement between ReliaStar
Life Insurance Company, Northern Life Insurance Company,
ReliaStar Life Insurance Company of New York and A I M
Advisors, Inc.(7)
(9) Not applicable.
(10)(a) Policy application.(2)
(b) Supplement to Policy Application Form.(7)
2. Opinion and Consent of Jeffrey A. Proulx, Esquire, as to the
legality of the Securities being registered. Filed as part
of EX-99.2.
</TABLE>

II-2
<PAGE> 102

<TABLE>
<C> <C> <S> <C>
3. Not applicable.
4. Not applicable.
</TABLE>

<TABLE>
<S> <C>
EX-99.C1. Independent Auditors' Consent.
EX-99.C2. Not applicable.
EX-99.C3. Not applicable.
EX-99.C4. See EX-99.2.
EX-99.C5. Not applicable.
EX-99.C6. Actuarial Opinion and Consent.
EX-99.D1. Memorandum describing RLICNY's issuance, transfer and
redemption procedures for the Policies and RLICNY's
procedure for conversion to a fixed benefit policy.(8)
EX-24. Powers of Attorney.
Stephen A. Carb(8)
R. Michael Conley(8)
Richard R. Crowl(8)
James R. Gelder(8)
Ambassador Ulric Haynes, Jr.(8)
Wayne R. Huneke(8)
Mark S. Jordahl(8)
Kenneth U. Kuk(8)
James R. Miller(8)
Fioravante G. Perrotta(8)
Robert C. Salipante(8)
John G. Turner(8)
Charles B. Updike(8)
Ross M. Weale(8)
</TABLE>

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

(1) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed December 31, 1996.

(2) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-47527, filed March 6, 1998.

(3) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed May 9, 1997.

(4) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed August 1, 1997.

(5) Incorporated by reference to Registrant's Form 485BPOS, File No. 333-47527,
filed on April 16, 1999.

(6) Incorporated by reference to Registrant's Form 485BPOS, File No. 333-19123,
filed on April 30, 1999.

(7) Incorporated by reference to Registrant's Form 485BPOS, File No. 333-19123,
filed on April 7, 2000.

(8) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed March 31, 2000.

II-3
<PAGE> 103

INDEX TO EXHIBITS

<TABLE>
<S> <C>
1. EX-99.A.5.(b) Policy Illustration
2. EX-99.C1. Independent Auditors' Consent
3. EX.99-C6. Actuarial Opinion and Consent
4. EX-99.2. Opinion and Consent of Jeffrey A. Proulx, Esquire,
as to the legality of the Securities being registered.
</TABLE>

<PAGE> 1
Exhibit 99.A.5(b)

VARIABLE ESTATE DESIGN RELIASTAR LIFE OF NEW YORK
A Survivorship Flexible Premium Variable 1000 Woodbury Road, Suite 102
Universal Life Insurance Policy Woodbury, NY 11797
________________________________________________________________________________

POLICY ILLUSTRATION
Variable Account

The purpose of this illustration is to show how the performance of the
underlying sub-accounts could affect the policy cash value and death benefit
assuming the current policy costs continue. This illustration is hypothetical
and may not be used to project or predict investment results.

Premiums are paid at the beginning of the year. The cash value and death
benefit are shown as of the end of each policy year.

Prepared for:

Male 55 No Tobacco
2nd Client
Female 55 No Tobacco Death Benefit Guarantee (DBG)
Initial Total Face Amount: $1,000,000 to end of year: 27
Initial Death Benefit Option: A (Level) Initial Minimum Annual Premium
Annual Premium: $11,700.00 for DGB: $11,654.42

<TABLE>
<CAPTION>
------------------------------CURRENT POLICY COSTS-------------------------
0.00% Gross Hypothetical Return 12.00% Gross Hypothetical Return
(-1.69% Net Yrs 1-10, -1.04% Yrs 11+) (10.31% Net Yrs 1-10, 10.96% Yrs 11+)
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
End Accum- Cash Accum- Cash
End of Yr Premium ulation Surrender Death ulation Surrender Death
of Yr Age Outlay Value Value Benefit Value Value Benefit
- ----- ----- ------- ------- --------- ------- ------- --------- -------
1 56 11,700 9,377 877 1,000,000 10,592 2,092 1,000,000
2 57 11,700 18,749 10,249 1,000,000 22,449 13,949 1,000,000
3 58 11,700 28,111 19,611 1,000,000 35,718 27,218 1,000,000
4 59 11,700 37,455 28,955 1,000,000 50,562 42,062 1,000,000
5 60 11,700 46,772 38,272 1,000,000 67,158 58,658 1,000,000
-------
58,500

6 61 11,700 56,052 48,402 1,000,000 85,708 78,058 1,000,000
7 62 11,700 65,278 58,478 1,000,000 106,429 99,629 1,000,000
8 63 11,700 74,432 68,482 1,000,000 129,568 123,618 1,000,000
9 64 11,700 83,497 78,397 1,000,000 155,399 150,299 1,000,000
10 65 11,700 92,444 88,194 1,000,000 184,222 179,972 1,000,000
-------
117,000

11 66 11,700 101,512 98,112 1,000,000 216,681 213,281 1,000,000
12 67 11,700 110,369 107,819 1,000,000 252,862 250,312 1,000,000
13 68 11,700 118,974 117,274 1,000,000 293,195 291,495 1,000,000
14 69 11,700 127,240 126,390 1,000,000 338,132 337,282 1,000,000
15 70 11,700 135,111 135,111 1,000,000 388,225 388,225 1,000,000
-------
175,500

20 75 11,700 163,277 163,277 1,000,000 740,364 740,364 1,000,000

25 80 11,700 154,130 154,130 1,000,000 1,375,578 1,375,578 1,444,357

30 85 11,700 28,086 28,086 1,000,000 2,480,324 2,480,324 2,604,341

35 90 11,700 0 0 0 4,364,830 4,364,830 4,583,072

40 90 11,700 0 0 0 7,632,388 7,632,388 7,708,713

45 90 11,700 0 0 0 13,530,400 13,530,400 13,530,400

</TABLE>

* Year 31, Month 8
Based on current costs and 0% hypothetical rate of return illustrated, the
policy would lapse and cannot be illustrated.
Additional premiums would be required to continue the coverage.

________________________________________________________________________________
This illustration is not complete without all pages.

$1,000,000 Var Estate Design for Presented by: John R. Pemble
Version M3 2.2.0 03/13/2000 03:15 PM
State of Issue: New York Page 1 of 6
<PAGE> 2

POLICY ILLUSTRATION
Variable Account

The purpose of this illustration is to show how the performance of the
underlying sub-accounts could affect the policy cash value and death benefit
assuming the maximum policy costs were charged. This illustration is
hypothetical and may not be used to project or predict investment results.

Premiums are paid at the beginning of the year. The cash value and death
benefit are shown as of the end of each policy year.

Prepared for:
Male 55 No Tobacco

2nd Client
Female 55 No Tobacco

<TABLE>
<CAPTION>
<S> <C>
Initial Total Face Amount: $1,000,000 Death Benefit Guarantee (DBG) to end of year: 27
Initial Death Benefit Option: A (Level) Initial Minimum Annual Premium for DBG: $11,654.42
Annual Premium: $11,700.00

</TABLE>

<TABLE>
<CAPTION>
-----------------------MAXIMUM GUARANTEED POLICY COSTS----------------------
0.00% Gross Hypothetical Return 12.00% Gross Hypothetical Return
(-1.99% Net Yrs 1-10, -1.34% Yrs 11+) (10.01% Net Yrs 1-10, 10.66% Yrs 11+)
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
End Accum- Cash Accum- Cash
End of Yr Premium ulation Surrender Death ulation Surrender Death
of Yr Age Outlay Value Value Benefit Value Value Benefit
- ----- ----- ------- ------- --------- --------- ------- --------- ---------
1 56 11,700 9,297 797 1,000,000 10,507 2,007 1,000,000
2 57 11,700 18,476 9,976 1,000,000 22,149 13,649 1,000,000
3 58 11,700 27,513 19,013 1,000,000 35,038 26,538 1,000,000
4 59 11,700 36,381 27,881 1,000,000 49,298 40,798 1,000,000
5 60 11,700 45,047 36,547 1,000,000 65,062 56,562 1,000,000
------
58,500

6 61 11,700 53,471 45,821 1,000,000 82,471 74,821 1,000,000
7 62 11,700 61,600 54,800 1,000,000 101,679 94,879 1,000,000
8 63 11,700 69,363 63,413 1,000,000 122,839 116,889 1,000,000
9 64 11,700 76,671 71,571 1,000,000 146,113 141,013 1,000,000
10 65 11,700 83,424 79,174 1,000,000 171,683 167,433 1,000,000
-------
117,000

11 66 11,700 89,804 86,404 1,000,000 200,080 196,680 1,000,000
12 67 11,700 95,400 92,850 1,000,000 231,258 228,708 1,000,000
13 68 11,700 100,093 98,393 1,000,000 265,512 263,812 1,000,000
14 69 11,700 103,729 102,879 1,000,000 303,171 302,321 1,000,000
15 70 11,700 106,122 106,122 1,000,000 344,616 344,616 1,000,000
-------
175,500

20 75 11,700 87,165 87,165 1,000,000 626,619 626,619 1,000,000

25 80 11,700 0 0 1,000,000 1,145,145 1,145,145 1,202,402

30 85 11,700 0 0 0 2,058,928 2,058,928 2,161,875

35 90 11,700 0 0 0 3,574,535 3,574,535 3,753,262

40 90 11,700 0 0 0 6,168,597 6,168,597 6,230,283

45 90 11,700 0 0 0 10,950,494 10,950,494 10,950,495

</TABLE>

* Year 28, Month 1
Based on the maximum guaranteed costs and a 0% hypothetical rate of return
illustrated, the policy would lapse and cannot be illustrated. Additional
premiums would be required to continue the coverage.
________________________________________________________________________________
This illustration is not complete without all pages.

$1,000,000 Var Estate Design for Presented by: John R. Pemble
Version M3 2.2.0 03/13/2000 03:15 PM
State of Issue: New York Page 2 of 6
<PAGE> 3

VARIABLE ESTATE DESIGN RELIASTAR LIFE OF NEW YORK
A Survivorship Flexible Premium Variable 1000 Woodbury Road, Suite 102
Universal Life Insurance Policy Woodbury, NY 11797
- --------------------------------------------------------------------------------

VALUABLE INFORMATION ABOUT YOUR ILLUSTRATION

This is an illustration, not a contract, and must be preceded or accompanied by
a current Prospectus.

This illustration does not recognize that, because of inflation, a dollar in
the future has less value than a dollar today.

The values illustrated comply with the Internal Revenue Code definition of life
insurance.

GROSS HYPOTHETICAL RETURNS. The gross hypothetical returns shown are
illustrative only and should not be deemed a representation of past or future
rates of return. No representation may be made by your agent or ReliaStar Life
Insurance Company of New York that these hypothetical rates of return can be
achieved or sustained over any period of time. The death benefits and cash
surrender values for a policy may be different from those shown, even if the
actual rates of return averaged the hypothetical rate of return illustrated over
a period of years but fluctuated above or below that average at any time during
the period.

NET ANNUAL RETURN. The net rate illustrated reflects a reduction from the gross
rate to cover ReliaStar's mortality and expense risk charge and portfolio
operating expenses. For current costs, the mortality and expense risk charge on
an annual basis is equal to 0.90% of the Variable Account assets for years one
through ten, and 0.25% thereafter. For maximum guaranteed costs, the mortality
and risk charge on an annual basis is equal to 1.20%. An average portfolio
operating expense of 0.79% is deducted from the gross return. The actual
portfolio expense deducted would vary based on the premium allocation specified.

SUB-ACCOUNT ALLOCATION. This illustration assumes that the net premiums (after
expense deductions) have been allocated to the Variable Account. Variable Estate
Design offers the policy owner the opportunity to select those sub-accounts that
most clearly reflect their own tolerance for risk. Sub-accounts and their
allocations are selected initially and can be changed or transferred between the
sub-accounts of the policy without creating a taxable event. Transfers between
sub-accounts can be made up to 12 times per year without charge. We reserve the
right to charge up to $25.00 per transfer.

FIXED ACCOUNT. A portion of premiums and accumulation values may also be
allocated to the Fixed Account. The Fixed Account is an interest paying account
that offers a guarantee of both principal and interest at a minimum annual rate
of 4% on amounts credited to the account. ReliaStar has complete ownership and
control of all of the assets of the Fixed Account. For current interest
crediting rates on the Fixed Account, ask your Registered Representative.

MINIMUM MONTHLY PREMIUM. A minimum monthly premium of $971.20 is required to
issue the policy and is guaranteed to maintain the base policy death benefit
guarantee. This minimum premium will change if increases or decreases are made
in any of the policy benefits.

DEATH BENEFIT GUARANTEE. A death benefit guarantee is in effect for 27 policy
years provided minimum premiums (net of policy loans and withdrawals) are paid.
The death benefit guarantee prevents the policy from lapsing during this period
even if the cash surrender value is not sufficient to cover the monthly
deduction due. The death benefit guarantee allows for financial security
regardless of sub-account performance. Please see the Prospectus for a full
explanation of this provision.

- --------------------------------------------------------------------------------
This illustration is not complete without all pages.
$100,000 Var Estate Design for Presented by: John R. Pemble
Version M3 2.2.0 03/13/2000 03:15 PM
State of Issue: New York Page 3 of 6
<PAGE> 4
VARIABLE ESTATE DESIGN RELIASTAR LIFE OF NEW YORK
A Survivorship Flexible Premium Variable 1000 Woodbury Road, Suite 102
Universal Life Insurance Policy Woodbury, NY 11797
- --------------------------------------------------------------------------------

DEDUCTIONS AND CHARGES. A premium expense charge is deducted from each premium
paid. The accumulation value of the policy is subject to several charges: a
monthly administration charge, a monthly amount charge for the base policy and
any riders (for 20 policy years after issue or any increase), a mortality and
expense risk charge, and the cost of insurance for the base policy and any
riders. Surrender charges are applicable for the first 15 years and the first 15
years following any requested increase in the face amount.

POLICY SPLIT OPTION RIDER. Allows the policyowner to split the policy into two
individual cash value life insurance policies in the event of a divorce of the
insureds, dissolution of a business partnership of the insureds, or if there is
a change in the federal estate tax laws that would eliminate the unlimited
marital deduction or reduce by at least 50% the estate taxes payable at death.
Evidence of insurability on each insured may be required to exercise this
option. There is no cost for this rider.

TAXATION. Tax laws are complex and change frequently. Changes in premium
payments from those illustrated or other changes made to the illustrated policy
after issue may result in classification as a Modified Endowment Contract (MEC).
Distributions from a Modified Endowment Contract, including loans, are taxable
as income in the year received to the extent that the accumulation value of the
policy prior to the distribution exceeds the total premiums paid. In addition,
distributions may be subject to an additional 10% income tax penalty if taken
before age 59-1/2. For complete information on how distributions from this
policy may affect your personal tax situation, always consult your professional
tax advisor.

ISSUER. Variable Estate Design is a product of ReliaStar Life Insurance Company
of New York located at 1000 Woodbury Road, Suite 102, Woodbury, NY 11797. The
general distributor is Washington Square Securities, Inc., an affiliated
company, member NASD/SIPC, located at 20 Washington Avenue South, Minneapolis,
MN 55401 (612-372-5507). Form #85-438.

PREMIUM LIMITED SUMMARY.

<TABLE>
<CAPTION>
<S> <C>
Minimum First Year Annual Premium: $ 11,654.42
Initial Guideline Level Premium: $ 21,101.35
Initial Guideline Single Premium: $233,070.87
Initial MEC 7-pay Premium: $ 52,901.91
</TABLE>
1YT = 1139635

<PAGE> 5

ILLUSTRATION SUMMARY AND DISCLOSURE
Variable Account

This page summarizes information from the previous ledger pages and outlines
some important policy provisions. Review the information presented below. If
acceptable, sign, date, and return this illustration, along with the
application for insurance, to ReliaStar Life Insurance Company of New York.

Prepared for:

Male 55 No Tobacco
2nd Client
Female 55 No Tobacco

Initial Total Face Amount: $1,000,000
Initial Death Benefit Option: A (Level) Death Benefit Guarantee (DBG)
Annual Premium: $11,700.00 to end of year: 27
Initial Minimum Annual Premium
for DBG: $11,654.42

This summary is based on the premium outlay in the policy illustration. The
cash value and death benefit are shown as of the end of the year.

<TABLE>
<CAPTION>
____________________________________________________________________________________________________________________
GUARANTEED COSTS CURRENT COSTS
0.00% Gross Annual Return 0.00% Gross Annual Return 12.00% Gross Annual Return
(-1.99% Net Yrs 1-10, (-1.69% Net Yrs 1-10, (10.31% Net Yrs 1-10,
-1.34% Yrs 11+) -1.04% Yrs 11+) 10.96% Yrs 11+)
____________________________________________________________________________________________________________________
<S> <C> <C> <C>
Year 10
Cash Surrender Value: 79,174 88,194 179,972
Death Benefit: 1,000,000 1,000,000 1,000,000

Year 20
Cash Surrender Value: 87,165 163,277 740,364
Death Benefit: 1,000,000 1,000,000 1,000,000

Projected year when
Death Benefit Ends: 27 31 45
____________________________________________________________________________________________________________________
</TABLE>

You may adjust your payment amounts, within limits, to extend or increase the
cash value and death benefit.

I understand that:

PURCHASE OF LIFE INSURANCE. I am buying a flexible premium cash value variable
life insurance policy issued by ReliaStar Life Insurance Company of New York.

RECEIPT OF PROSPECTUS. I received the current Prospectus describing the terms
and operation of the policy and the underlying sub-accounts. I'm keeping the
Prospectus for further reference. I understand the policy has some features
comparable to and others different from a traditional life insurance policy. I
realize this Disclosure Statement highlights some, but not all, of the
important aspects of the policy and that I should examine the Prospectus prior
to purchasing a policy.

INSURANCE PROTECTION. The policy provides insurance protection until the younger
insured's age 100, if the cash surrender value, as explained in the Prospectus,
is sufficient to pay the monthly charges. After age 100, the policy stays
inforce, but the death benefit reduces to equal the accumulation value.

SUB-ACCOUNT ALLOCATION. I may allocate a net premium (amount remaining after
expense deductions) among one or more sub-accounts, each of which invests in one
of the available portfolios. Each portfolio has a different investment
objective, as described in the current Prospectus. In allocating net premiums to
a sub-account, the investment performance of the underlying portfolios I select
will impact the policy accumulation value and may impact the death benefit.
Thus, the investment risk for those amounts is mine, and no minimum accumulation
value in any sub-account(s) is guaranteed. I may also allocate net premiums to a
Fixed Account, which the Company guarantees both as to principal and interest at
a minimum annual rate of 4.0%.

_______________________________________________________________________________
This illustration is not complete without all pages.

$1,000,000 Var Estate Design for Presented by: John R. Pemble
Version M3 2.2.0 03/13/2000 03:15 PM
State of Issue: New York Page 5 of 6
<PAGE> 6

VARIABLE ESTATE DESIGN RELIASTAR LIFE OF NEW YORK
A Survivorship Flexible Premium 1000 Woodbury Road, Suite 102
Variable Universal Life Insurance Policy Woodbury, NY 11797
________________________________________________________________________________

SELECTED PORTFOLIO. The sub-accounts I select have varying portfolio operating
expenses. Changes to the selected sub-accounts and the allocation percentages
will have an impact on the policy cash values. This illustration assumes the
average portfolio expense of all underlying portfolios is deducted.

ILLUSTRATIONS. The illustrations in the Prospectus present hypothetical
investment results and those presented by the Company's representative will
utilize hypothetical and/or historical investment results. Neither hypothetical
nor historical investment returns are guaranteed. The values set forth are
illustrative only and are not intended to predict actual performance. They are
intended to help explain how the policy operates and are not deemed to represent
future investment results. Actual investment results may be more or less and
depend on a number of factors, as explained in the Prospectus.

CHARGES AND DEDUCTIONS. As described in the Prospectus, there are (a) charges
made against each premium payment and (b) monthly deductions against the
accumulation value for the cost of insurance, administrative charges, amount
charges, and mortality and expense risks assumed by the Company. If I surrender
the policy or allow it to lapse during the first 15 years after issue or an
increase, a surrender charge will be imposed.

LOANS AND WITHDRAWALS. Policy loans and partial cash withdrawals are available,
subject to certain limits and charges as explained in the Prospectus. If, at any
time, the amount of the policy loan exceeds the cash surrender value, the grace
period goes into effect and we may lapse the policy. Policy loans and partial
withdrawals may cause the death benefit guarantee to terminate.

TAX MATTERS. The Company does not provide legal or tax advice in reference to
this life insurance policy. I acknowledge that the section in the Prospectus
"Federal Tax Matters", is not intended to be a complete description of the tax
status of the policy.

- ------------------------------------------------ ---------------------
Applicant or Policy Owner Date

- ------------------ ----------------------
Date of Prospectus Prospectus Form Number

- ------------------------------------------------ ---------------------
John R. Pemble Date

________________________________________________________________________________
This illustration is not complete without all pages.

$1,000,000 Var Estate Design for Presented by: John R. Pemble
Version M3 2.2.0 03/13/2000 03:15 PM
State of Issue: New York Page 6 of 6

<PAGE> 1
INDEPENDENT AUDITORS' CONSENT

Board of Directors
ReliaStar Life Insurance Company of New York Variable Life Separate Account I

We consent to the use in this Post-Effective Amendment No. 2 to Registration
Statement No. 333-47527 on Form S-6 of ReliaStar Life Insurance Company of New
York Variable Life Separate Account I filed under the Securities Act of 1933 of
our report dated February 18, 2000 related to the financial statements of
ReliaStar Life Insurance Company of New York Variable Life Separate Account I as
of December 31, 1999 and for the years ended December 31, 1999 and December 31,
1998 and the period from August 8, 1997 (date of inception) to December 31,
1997, and our report dated February 1, 2000 related to the financial statements
of ReliaStar Life Insurance Company of New York as of and for the years ended
December 31, 1999 and 1998 appearing in the Prospectus, which is a part of such
Registration Statement, and to the reference to us under the heading "Experts"
in such Prospects.

/s/ Deloitte & Touche, LLP
Minneapolis, Minnesota
April 11, 2000

<PAGE> 1

EX-99.C6

April 14, 2000

ReliaStar Life Insurance Company of New York
1000 Woodbury Lane, Suite 102
Woodbury, NY 11797

Madam/Sir:

This opinion is furnished in connection with the registration by ReliaStar Life
Insurance Company of New York of a flexible premium survivorship variable life
insurance policy (the "Contract") under the Securities Act of 1933, as amended.
The Contract, including variations thereof used in various states, is described
in the Prospectus constituting a part of the Registration Statement on Form S-6,
as amended through and including Post-Effective Amendment No. 2 thereto, File
No. 333-47527.

The form of Contract was reviewed by me, and I am familiar with the Registration
Statement and Exhibits thereto.

In my opinion:

The illustrations of Accumulation Values, Surrender Charges, Cash
Surrender Values, and Death Benefits, shown in this Post-Effective
Amendment No. 2 to the Registration Statement on Form S-6 as Exhibit
1.A.(5)(b) based on the assumptions stated in the illustrations, are
consistent with the provisions of the Contract (including, as
appropriate, any state variation thereof). The rate structure of the
Contract has not been designed so as to make the relationship between
premiums and benefits, as shown in the illustrations, appear more
favorable to a prospective purchaser of a Contract for a male Joint
Insured Age 55 and a female Joint Insured Age 55, both nonsmokers in a
standard Rate Class, than to prospective purchasers of the Contract for
other ages, sexes, or Rate Classes. In any state where charges cannot be
based upon the insured's sex, the rate structure of the Contract has not
been designed so as to make the relationship between premium and
benefits, as shown in the illustrations, appear more favorable to a
prospective purchaser of the Contract for Joint Insureds who are both
Age 55 than to prospective purchasers of the Contract for other ages.

I hereby consent to the use of this opinion as an exhibit to the Registration
Statement and to the reference to my name under the heading "Experts" in the
Prospectus constituting a part of the Registration Statement.

Sincerely,

/s/ Steve West
- ---------------------------
Steve West, FSA, MAAA
Actuary

<PAGE> 1

Exhibit 99.2

JEFFREY A. PROULX
Associate Counsel

Phone (612) 372-1810
Fax (612) 342-7531

April 14, 2000

ReliaStar Life Insurance Company of New York
1000 Woodbury Road, Suite 102
Woodbury, NY 11797

Dear Sir or Madam:

In connection with the proposed registration under the Securities Act of 1933,
as amended, of a survivorship flexible premium variable life insurance policy
(the "Policy") and interests in ReliaStar Life Insurance Company of New York
Variable Life Separate Account I (the "Variable Account"), I have examined
documents relating to the establishment of the Variable Account by the Board of
Directors of our affiliated company, ReliaStar Life Insurance Company of New
York (the "Company"), as a separate account for assets applicable to variable
contracts, pursuant to New York Insurance Law Section 4240, as amended, and the
Registration Statement, on form S-6 (the "Registration Statement") and I have
examined such other documents and have reviewed such matters as I deemed
necessary for this opinion, and I advise you that in my opinion:

1. The Variable Account is a separate account of the company duly created
and validly existing pursuant to the laws of the State of New York.

2. The Policy, when issued in accordance with the Prospectus constituting
a part of the Registration Statement and upon compliance with
applicable local law, will be legal and binding obligations of the
Company in accordance with their respective terms.

3. The portion of the assets held in the Variable Account equal to
reserves and other contract liabilities with respect to the Variable
Accounts are not chargeable with liabilities arising out of any other
business the Company may conduct.

I consent to the filing of this opinion as an exhibit to the Registration
Statement and to the use of my name under the heading "Legal Matters" in the
Prospectus constituting a part of the Registration Statement and to the
references to me wherever appearing therein.

Sincerely,

/s/ JEFFREY A. PROULX
- --------------------------------
Jeffrey A. Proulx
Associate Counsel