AMERICAN INTERNATIONAL LIFE ASSURANCE COMPANY OF NEW YORK
Variable Account A
PROSPECTUS SUPPLEMENT
DATED January 5, 1999
Supplement to the Prospectus dated May 1, 1998 and all subsequent
amendments for Variable Annuity Contracts issued by Variable Account A and
American International Life Assurance Company of New York.
This Supplement amends the heading indicated, as follows:
Dollar Cost Averaging
The Company offers an option under which Owners may dollar cost average
their allocations in the Subaccounts under the contract by authorizing the
Company to make periodic allocations of Contract Value from either the Money
Market Subaccount or the Guaranteed Account to one or more of the other
Subaccounts. Dollar Cost Averaging is a systematic method of investing in which
securities are purchased at regular intervals in fixed dollar amounts so that
the cost of the securities gets averaged over time and possibly over various
market cycles. The option will result in the allocation of Contract Value to one
or more Subaccounts, and these amounts will be credited at the Accumulation Unit
value as of the end of the Valuation Dates on which the exchanges are effected.
The amounts exchanged from a Subaccount will result in a debiting of a
greater number of units when the Subaccount's Accumulation Unit value is low and
a lesser number of units when the Accumulation Unit value is high. To elect
Dollar Cost Averaging, the Owner's Contract Value must be at least $12,000.
The Company also offers a 6-month dollar cost averaging option that is
available only for new Premium payments of at least $12,000. Either the initial
Premium or subsequent payments of additional Premium are eligible for this
option. If the Owner selects this option, Premium will be allocated to a 6-month
DCA Guaranteed Account. The Owner may not transfer existing Contract Value to
the 6-month DCA Guaranteed Account. If Premium is allocated to the 6-month DCA
Guaranteed Account, the full amount will be transferred on a monthly basis over
a 6-month period into the Subaccounts selected by the Owner. The Owner may not
change the option or frequency of transfers. The minimum amount that can be
transferred monthly from the DCA Guaranteed Account is one-sixth of the Premium
allocated to it.
Each allocation of Premium to a 6-month DCA Guaranteed Account will earn
interest at a rate that may be different than an allocation of Premium to this
option made on a different date.
The interest rate credited to the 6-month DCA Guaranteed Account may be
different from the interest rate credited to the Guaranteed Account option
described in Appendix A-1. If the 6-month dollar cost averaging program is
terminated, any Contract Value remaining in a 6-month DCA Guaranteed Account
will be automatically transferred to the Guaranteed Account and will earn the
interest rate then in effect for the Guaranteed Account option.
A Dollar Cost Averaging Request in proper form must be received by the
Company. The Dollar Cost Averaging Request form will not be considered complete
until the Contract Value is at least the required amount or the Premium
submitted is at least $12,000. A Dollar Cost Averaging Request form is available
from the Administrative Office upon request. An Owner may not have Dollar Cost
Averaging and Asset Rebalancing in effect at the same time.
The Company reserves the right to modify, suspend or terminate any dollar
cost averaging programs at any time.
Amounts periodically transferred under this option are not included in the
12 transfers per Contract Year discussed under "Transfers" on page 17. Since the
value of Accumulation Units will vary, the amounts allocated to a Subaccount
will result in the crediting of a greater number of units when the Accumulation
Unit value is low and a lesser number of units when the Accumulation Unit value
is high.
Dollar Cost Averaging does not guarantee profits, nor does it assure that
an Owner will not have losses.
