Rule 497
File No. 33-90686
American International Life Assurance
Company of New York
Variable Account B
Supplement dated September 9, 1997 to the Prospectus dated May 1, 1997.
This supplement provides information regarding the High Yield Portfolio of the
Alliance Variable Product Series Fund, Inc. (the Alliance Fund). Nineteen
portfolios are now available to policyholders. Additional information regarding
the High Yield Portfolio may be found in the prospectus for the Alliance Fund
dated May 1, 1997 as amended August 22, 1997, which sets forth the disclosure
regarding the High Yield Portfolio. The Alliance Fund prospectus is enclosed
with this Prospectus. The High Yield Portfolio is managed by Alliance Capital
Management L.P. the Fund's Investment Manager.
This Supplement amends the contents of the Prospectus, under the heading
indicated, as follows:
ALLIANCE VARIABLE PRODUCTS SERIES FUND, INC.
High Yield Portfolio
This Portfolio seeks the highest level of current income available without
assuming undue risk by investing principally in high-yielding fixed income
securities. As a secondary objective, this Portfolio seeks capital appreciation
where consistent with its primary objective. Many of the high-yielding
securities in which the High-Yield Portfolio invests are rated in the lower
rating categories (i.e. below investment grade) by nationally recognized rating
services. These securities, which are often referred to as "junk bonds", are
subject to greater risk of loss of principal and interest than higher rated
securities and are considered to be predominately speculative with respect to
the issuer's capacity to pay interest and repay principal. THERE IS NO
ASSURANCE THAT THE INVESTMENT OBJECTIVE WILL BE ACHIEVED.
THIS SUPPLEMENT SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR VARIABLE
ACCOUNT B DATED MAY 1, 1997 AND THE ALLIANCE FUND PROSPECTUS DATED MAY 1, 1997
AS AMENDED AUGUST 22, 1997.
