<PAGE>
PAGE 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
POST-EFFECTIVE NO. 14 TO
FORM S-6
File No. 33-15290
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2
A. Exact name of trust: IDS Life of New York Account 8
B. Name of depositor IDS LIFE INSURANCE COMPANY OF NEW YORK
C. Complete address of depositor's principal executive offices:
20 Madison Avenue Extension
Box 5144
Albany, New York 12205
D. Name and complete address of agent for service:
Mary Ellyn Minenko, Esq.
IDS Life Insurance Company of New York
IDS Tower 10
Minneapolis, Minnesota 55440-0010
E. Title and amount of securities being registered:
Flexible Premium Variable Life Insurance Policy
F. Proposed maximum aggregate offering price to the public of the
securities being registered.
Registration of Indefinite Amount of Securities Pursuant
to Rule 24f-2 under the Investment Company Act of 1940.
G. Amount of initial filing fee: NA
Registrant's Rule 24f-2 Notice for its most recent fiscal
year was filed on or about February 23, 1996.
H. It is proposed that this filing will become effective (check
appropriate space)
immediately upon filing pursuant to paragraph (b) of Rule 485
X on April 30, 1996 pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a) of Rule 485
on (date) pursuant to paragraph (a) of Rule 485
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PAGE 2
CROSS REFERENCE TO ITEMS REQUIRED
BY FORM N-8B-2
N-8B-2 Item Caption in Prospectus
1.............................Cover Page; The variable account
2.............................IDS Life of New York
3.............................Not applicable
4.............................Distribution of the policy
5.............................The variable account
6.............................The variable account
7.............................Not applicable
8.............................Not applicable
9.............................Not applicable
10............................Surrender charge; Total surrenders;
Partial surrenders; Taxation of
policy proceeds; Reinstatement;
Transfers between the fixed account
and the subaccounts; Grace period;
Voting rights; Substitution of
investments; Payment of premiums;
The fixed account; Allocation of
premiums; Transfers between the
fixed account and the subaccounts;
Right to examine policy
11............................The fund; The trust
12............................The fund; The trust; Cover page
13............................Loads, fees, and charges
14............................Purchasing your policy; Application
15............................Premiums; Payment of premiums;
Transfers between the fixed account
and the subaccounts; The fund, The
trust
16............................Premiums; Payment of premiums;
Transfers between the fixed account
and the subaccounts; The fund; The
trust
17............................Two ways to request a transfer, loan
or surrender; Policy surrenders
18............................The fund; The trust
19............................Reports
20............................Not applicable
21............................Policy loans; Two ways to request a
transfer, loan or surrender
22............................Not applicable
23............................Management of IDS Life of New York
24............................Policy value; Death benefits; Payment
of policy proceeds
25............................IDS Life of New York
26............................Not applicable
27............................IDS Life of New York
28............................Management of IDS Life of New York
29............................Ownership
30............................Not applicable
31............................Not applicable
32............................Not applicable
33............................Not applicable
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34............................Not applicable
35............................Not applicable
36............................Not applicable
37............................Not applicable
38............................Distribution of the policy
39............................IDS Life of New York; Distribution of
the policy
40............................Not applicable
41............................Distribution of the policy; IDS Life
of New York
42............................Management of IDS Life of New York
43............................Not applicable
44............................Premiums; Transfers between the fixed
account and subaccounts; Subaccount
values
45............................Not applicable
46............................Subaccount values
47............................Not applicable
48............................IDS Life of New York
49............................Not applicable
50............................Not applicable
51............................The variable account
52............................Substitution of investments
53............................IDS Life of New York's tax status
54............................Not applicable
55............................Not applicable
56............................Not applicable
57............................Not applicable
58............................Not applicable
59............................Not applicable
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Flexible Premium Variable Life Insurance Policy
Prospectus April 30, 1996
The Flexible Premium Variable Life Insurance Policy described in
this prospectus is designed to provide life insurance coverage on
the insured named in the policy and flexibility of premium payments
and death benefits. This flexibility allows you to meet changing
insurance needs with a single insurance policy. The policy is
intended to qualify as a life insurance policy under Sections 72,
101 and 7702 of the Internal Revenue Code.
You may allocate policy value to one or more of seven subaccounts
of IDS Life of New York Account 8 (Variable Account). Six
subaccounts invest in the portfolios of IDS Life Series Fund:
Equity, Income, Money Market, Managed, Government Securities and
International Equity. One subaccount invests in the Smith Barney
Inc. Stripped ("Zero Coupon") U.S. Treasury Securities Fund, Series
A. There is no guaranteed minimum policy value with respect to the
subaccounts and you bear the entire investment risk. You may also
allocate policy value to the fixed account, which earns at least a
guaranteed minimum interest rate. The fixed account is the general
investment account of IDS Life of New York.
You may withdraw a portion of the policy's cash surrender value
after the first policy year or surrender it in full at any time for
its cash surrender value. Surrender charges are described under
"Loads, fees and charges." You may also take out policy loans.
The frequency of and amount of premium payments are flexible,
subject to certain restrictions and conditions. Payment of the
scheduled premium will not necessarily keep a policy from lapsing
if the cash surrender value is less than the amount needed to pay
the monthly deduction. (See "Loads, fees and charges.") However,
a policy will not lapse if the premiums needed to keep the death
benefit guarantee in effect are paid. The death benefit guarantee
may remain in effect until the insured reaches attained insurance
age 65 or the policy has been in effect for five years, whichever
is later.
This prospectus contains detailed information about these and other
policy features, including certain restrictions and limitations
that apply. This prospectus also discusses how the investment
return earned by the policy can affect the policy's death benefit
and cash surrender value.
As in the case of other life insurance policies, it may not be
advantageous to purchase flexible premium variable life insurance
as a replacement for, or in addition to an existing flexible
premium variable or other life insurance policy.<PAGE>
PAGE 5
IDS Life of New York Account 8
Flexible Premium Variable Life Insurance Policy
Issued and sold by: IDS Life Insurance Company of New York (IDS
Life of New York), 20 Madison Avenue Extension, Albany, New York
12203 Telephone: (518) 869-8613
THIS PROSPECTUS IS VALID ONLY WHEN ACCOMPANIED OR PRECEDED BY THE
PROSPECTUS OF THE IDS LIFE SERIES FUND, INC. AND OF THE SMITH
BARNEY INC. STRIPPED ("ZERO COUPON") U.S. TREASURY SECURITIES FUND,
SERIES A. ALL PROSPECTUSES SHOULD BE RETAINED FOR FUTURE
REFERENCE. THIS POLICY IS ONLY OFFERED IN NEW YORK.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES
COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF
THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
IDS LIFE OF NEW YORK IS NOT A FINANICAL INSTITUTION AND THE
SECURITIES IT OFFERS ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED OR ENDORSED BY ANY FINANCIAL INSTITUTION NOR ARE THEY
INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY.
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PAGE 6
Table of contents
Key terms
The policy in brief
The variable account
The fund
Equity Portfolio
Income Portfolio
Money Market Portfolio
Managed Portfolio
Government Securities Portfolio
International Equity Portfolio
Portfolio objectives
Relationship between portfolios and subaccounts
Rates of return of the fund and subaccounts
The trust
Objectives and major investments
Estimated rates of return
Trust maturity
Roles of Smith Barney Inc. and IDS Life of New York
The fixed account
Purchasing your policy
Application
Right to examine policy
Premiums
Loads, fees and charges
Premium expense charge
Monthly deduction
Surrender charge
Partial surrender fee
Mortality and expense risk charge
Transaction charge
Fund expenses
Death benefit guarantee
Grace period
Reinstatement
Policy value
Fixed account value
Subaccount values
Death benefits
Change in death benefit option
Changes in specified amount
Misstatement of age or sex
Suicide
Beneficiary
Transfers between the fixed account and subaccounts
Fixed account transfer policies
Minimum transfer amounts
Maximum transfer amounts
Maximum number of transfers per year
Two ways to request a transfer, loan or surrender
Automated transfers
Automated dollar-cost averaging
Policy loans
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PAGE 7
Policy surrenders
Total surrenders
Partial surrenders
Allocations of partial surrenders
Effects of partial surrenders
Taxes
Optional insurance benefits
Waiver of monthly deduction
Accidental death benefit
Other insured rider
Children's insurance rider
Payment of policy proceeds
Federal taxes
IDS Life of New York's tax status
Taxation of policy proceeds
Modified endowment contracts
Other tax considerations
Ownership
State Regulation
Distribution of the policy
Legal proceedings
Experts
IDS Life of New York
Ownership
State regulator
Distribution of the policy
Legal proceedings
Experts
Management of IDS Life of New York
Smith Barney Inc.
Other information
Substitution of investments
Voting rights
Reports
Policy illustrations
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PAGE 8
Key terms
These terms can help you understand details about your policy
Accumulation unit - An accounting unit used to calculate the policy
value of the subaccounts prior to the insured's death. It is a
measure of the net investment results of each of the subaccounts.
Attained insurance age - The insured's insurance age plus the
number of policy anniversaries since the policy date. Attained
insurance age changes only on a policy anniversary.
Cash surrender value - Proceeds received if the policy is
surrendered in full or matures, equal to the policy value minus any
indebtedness and any applicable surrender charges.
Code - The Internal Revenue Code of 1986, as amended.
Close of business - Closing time of the New York Stock Exchange,
normally 4 p.m., Eastern time.
Death benefit guarantee - A feature of the policy guaranteeing that
the policy will not lapse before the insured's attained insurance
age 65 (or five policy years, if later). The guarantee is in
effect if, on each monthly anniversary, total premiums paid, minus
any partial surrenders and any indebtedness, equal or exceed the
total required minimum monthly premium payments specified in the
policy.
Fixed account - The general investment account of IDS Life of New
York. The fixed account is made up of all of IDS Life of New
York's assets other than those held in any separate account.
Fixed account value - The portion of the policy value that is
allocated to the fixed account, including indebtedness.
Fund - IDS Life Series Fund, Inc., a diversified open-end
management investment company intended to meet a wide range of
investment goals with its six separate portfolios: Equity
Portfolio, Income Portfolio, Money Market Portfolio, Managed
Portfolio, Government Securities Portfolio and International Equity
Portfolio. Each of six subaccounts of the variable account invests
in a specific one of these portfolios.
IDS Life of New York - In this prospectus, "we," "us," "our" and
"IDS Life of New York" refer to IDS Life Insurance Company of New
York.
Indebtedness - All existing loans on the policy plus interest that
has either been accrued or added to the policy loan.
Insurance age - The age of the insured, based upon his or her
nearest birthday on the date of the application.
Insured - The person whose life is insured by the policy.
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PAGE 9
Maturity date - The insured's attained insurance age 100, if
living.
Minimum monthly premium - A monthly premium amount specified in
the policy that determines the total payment required to keep the
death benefit guarantee in effect. The initial minimum monthly
premium, determined by IDS Life of New York when the policy is
issued, depends on the insured's sex, insurance age, rate
classification, optional insurance benefits added by rider, and the
initial specified amount. An increase or decrease in specified
amount, or the addition, change or termination of a policy rider
will change the minimum monthly premium.
Monthly date - The same day each month as the policy date. If
there is no monthly date in a calendar month, the monthly date is
the first day of the next calendar month.
Net amount at risk - A portion of the death benefit, equal to the
total current death benefit minus the policy value. This is the
amount to which cost of insurance rates are applied in determining
the monthly cost of insurance.
Net premium - The portion of a premium that is credited to the
policy, equal to the premium you pay minus a charge of 2.5% to
cover sales loads and a charge of 1% to cover state premium taxes.
Owner - The entity to which, or individual to whom, the policy is
issued or to whom ownership is subsequently transferred. In the
prospectus "you" and "your" refer to the owner.
Policy anniversary - The same day and month as the policy date each
year the policy remains in force.
Policy date - The date the policy is issued and from which policy
anniversaries, policy years and policy months are determined.
Policy value - The sum of the fixed account value plus the variable
account value.
Proceeds - The amount payable under the policy as follows:
o Upon death of the insured, proceeds will be the death
benefit under the death benefit option in effect as of
the date of the insured's death, minus any indebtedness.
o On the maturity date, proceeds will be the cash surrender
value.
o On surrender of the policy prior to the maturity date,
the proceeds will be the cash surrender value.
Rate classification - A group of insureds that IDS Life of New York
expects will have similar mortality experience.
Scheduled premium - A premium, selected by the owner at the time of
application, of a level amount, at a fixed interval of time.
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PAGE 10
Specified amount - An amount used to determine the death benefit
and the proceeds payable upon death. Under Option 1, it is the
death benefit originally applied for. Under Option 2, it is the
initial net amount at risk. The initial specified amount is shown
in your policy.
Subaccount(s) - One or more of the investment divisions of the
variable account, each of which invests in a particular fund
portfolio or trust.
Surrender charge - A contingent deferred issue and administrative
expense charge and a contingent deferred sales charge assessed
against the policy value at the time of surrender during the first
10 years of the policy and for 10 years after an increase in
coverage.
Trust - A unit investment trust, which is part of Smith Barney Inc.
Stripped ("Zero Coupon") U.S. Treasury Securities Fund, Series A.
One subaccount of the variable account invests in the trust, which
contains certain debt obligations of the United States.
Valuation date - A normal business day, Monday through Friday, on
which the New York Stock Exchange is open. The value of each
subaccount is set at the close of business on each valuation date.
Valuation period - The interval commencing at the close of business
on each valuation date and ending at the close of business on the
next valuation date.
Variable account - IDS Life of New York Account 8 is a separate
account of IDS Life of New York. Each subaccount invests in a
particular mutual fund portfolio or unit investment trust. The
policy value in each subaccount depends on the performance of the
particular portfolio or trust.
Variable account value - The sum of the values that are allocated
to the subaccounts of the variable account.
The policy in brief
The Flexible Premium Variable Life Insurance Policy (the policy) is
designed to provide insurance protection on the life of the insured
and to build cash value. Like other life insurance, the policy
provides a death benefit that is payable to the beneficiary upon
the insured's death. Unlike traditional, fixed-premium life
insurance, the policy allows you, as the policy owner, to allocate
your premiums (payments), or transfer policy value, to:
The variable account, consisting of subaccounts, each of which
invests in a mutual fund portfolio or unit investment trust
with a particular investment objective. You may direct
premiums to any or all of seven of these subaccounts. Your
policy's value may increase or decrease daily, depending on
the investment return. No minimum amount is guaranteed, as
it would be in a traditional life insurance policy. (p.)
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PAGE 11
The fixed account, which earns interest at rates that are
adjusted periodically by IDS Life of New York. This rate will
never be lower than 4.5%. (p.)
The fund: Six subaccounts of the variable account invest in IDS
Life Series Fund, Inc., a series mutual fund of which IDS Life is
investment manager. The fund includes Equity, Income, Money
Market, Managed, Government Securities and International Equity
portfolios. (p.)
The trust: One subaccount of the variable account invests in units
of the Smith Barney Inc. Stripped ("Zero Coupon") U.S. Treasury
Securities Fund, Series A, consisting of a unit investment trust.
(p.)
Purchasing your policy: To apply, send a completed application and
premium payment to IDS Life of New York's home office. For your
application to be accepted, you will need to meet certain
conditions stated in the application form and to supply medical and
other evidence that the person you propose to insure (yourself or
someone else) is insurable according to our underwriting rules.
(p.)
Right to examine policy: You may return your policy for any reason
and receive a full refund of your premiums by mailing us the policy
and a written request for cancellation within a specified period.
(p.)
Premiums: In applying for your policy, you state how much you
intend to pay and whether you will pay quarterly, semiannually or
annually. You may also make additional, unscheduled premium
payments in any amount from $25 to $500,000. We may refuse
premiums in order to comply with the Code. (p.)
Loads, fees and charges: Your policy is subject to the following
charges, which compensate IDS Life of New York for administering
and distributing the policy as well as paying policy benefits and
assuming related risks:
o Premium expense charge -- 2.5% sales charge and 1% premium tax
charge for a total of 3.5% of each premium payment. This charge
pays some distribution expenses and state and local premium taxes.
o Monthly deduction -- charged against the value of your policy
each month, covering the cost of insurance, cost of issuing the
policy, certain administrative expenses, a death benefit guarantee
charge and optional insurance benefits.
o Surrender charge -- applies if you surrender your policy for its
full cash surrender value, or the policy lapses, during the first
10 years and for 10 years after requesting an increase in the
specified amount (the minimum death benefit specified in your
application). The surrender charge consists of a deferred charge
for costs of issuing the policy and a deferred sales charge. It is
based on the initial specified amount and on any increase in the
specified amount.
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PAGE 12
o Partial surrender fee -- applies if you surrender part of the
value of your policy; equals $25 or 2% of the amount surrendered,
if less.`
o Mortality and expense risk charge -- applies only to the
subaccounts; equals, on an annual basis, 0.9% of the average daily
net asset value of the subaccounts.
o Transaction charge -- applies only to subaccounts that invest in
the trusts; equals, on an annual basis, 0.25% of their average
daily net asset value.
o Fund expenses -- applies only to the fund portfolios. The
investment management fee equals, on an annual basis, 0.5% of the
average daily net assets of the Money Market Portfolio, 0.95% of
the average daily net assets of International Equity Portfolio and
0.7% of the average daily net assets of the other portfolios. The
fund also pays taxes, brokerage commissions and nonadvisory
expenses. IDS Life has agreed to a voluntary limit of 0.1%, on an
annual basis, of the average daily net assets of each portfolio for
these nonadvisory expenses. (p.)
Death benefit guarantee: Your policy will not lapse regardless of
investment performance if the death benefit guarantee is in effect.
To keep the death benefit guarantee in effect, you must pay the
minimum monthly premiums specified in the policy. The death
benefit guarantee applies only until the insured reaches attained
insurance age 65 or the policy has been in effect for five years,
whichever is later. (p.)
Grace period: If the cash surrender value of your policy becomes
less than the amount needed to pay the monthly deduction and the
death benefit guarantee is not in effect, you will have 61 days to
pay a premium that raises the cash surrender value to an amount
sufficient to pay the monthly deduction. If you don't, the policy
will lapse. (p.)
Reinstatement: If your policy lapses, it can be reinstated within
five years, if you make certain payments and present evidence
satisfactory to IDS Life of New York that the insured remains
insurable. The death benefit guarantee cannot be reinstated.
(p.)
Death benefits: Your policy's death benefit can never be less than
the specified amount in your policy application, unless you change
that amount or your policy has outstanding indebtedness. The
relationship between the policy value and the death benefit depends
on which of two options you choose:
o Option 1 level amount: The death benefit is the greater of the
specified amount or a percentage of policy value.
o Option 2 variable amount: The death benefit is the greater of
the specified amount plus the policy value, or a percentage of
policy value.<PAGE>
PAGE 13
You may change the death benefit option or specified amount within
certain limits; doing so will generally affect policy charges.
(p.)
Transfers between the fixed account and subaccounts: You may, at
no charge, transfer policy value from one subaccount to another or
between subaccounts and the fixed account. (Certain restrictions
apply to transfers involving the fixed account.) You can request
up to five transfers per year by phone or mail. You can also
arrange for automated transfers on a monthly, quarterly, semiannual
or annual basis. (p.)
Policy loans: You may borrow against your policy's cash surrender
value. A policy loan, even if repaid, can have a permanent effect
on the death benefit and policy value. A loan may also have tax
consequences if your policy lapses or you surrender it. (p.)
Policy surrenders: You may cancel the policy while the insured is
living and receive its cash surrender value. The cash surrender
value is the policy value minus indebtedness, minus any applicable
surrender charges. (p.)
Exchange right: For two years after the policy is issued, you can
exchange it for one that provides benefits that do not vary with
the investment return of the subaccounts. Because the policy
itself offers a fixed return option, all you need do is transfer
all of the policy value in the subaccounts to the fixed account.
(p.)
Payment of policy proceeds: Proceeds will be paid when you
surrender the policy, the insured dies or the policy matures, which
occurs when the insured reaches attained insurance age 100. You or
the beneficiary may choose whether payment is to be made in a lump
sum or under one or more of certain options. (p.)
Federal taxes: The death benefit is not considered part of the
beneficiary's income and thus is not subject to federal income
taxes. Part or all of any proceeds received through full or
partial surrender, maturity, lapse, policy loan or assignment of
policy value may be subject to federal income tax as ordinary
income. Proceeds other than death benefits from certain policies,
classified as "modified endowments," are taxed differently from
proceeds of conventional life insurance contracts and may also be
subject to an additional 10% IRS penalty tax if you are younger
than 59 1/2. A policy is considered to be a modified endowment if
it was applied for or materially changed after June 21, 1988, and
premiums paid in the early years exceed certain modified endowment
limits. (p.)
The variable account
You can direct your premiums to any or all of seven subaccounts of
the variable account. Six of these invest in portfolios of IDS
Life Series Fund, Inc.:
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PAGE 14
Subaccount invests exclusively in shares of
Equity Equity Portfolio
Income Income Portfolio
Money Market Money Market Portfolio
Managed Managed Portfolio
Government Securities Government Securities Portfolio
International Equity International Equity Portfolio
One subaccount invests in units of the Smith Barney Inc. Stripped
("Zero Coupon") U.S. Securities Fund, Series A, a unit investment
trust:
Subaccount invests in a trust with maturity date of
2004 Nov. 15, 2004
The variable account was established on Sept. 12, 1985, under New
York law and is registered as a single unit investment trust under
the Investment Company Act of 1940. Such registration does not
involve any SEC supervision of the account's management or
investment practices or policies. International Equity subaccount
was added to the variable account on October 28, 1994.
The variable account meets the definition of a "separate account"
under federal securities laws. Income, capital gains or capital
losses of each subaccount are credited to or charged against the
assets of that subaccount alone. No subaccount will be charged
with liabilities of any other subaccount or of any other business
conducted by IDS Life of New York.
At all times, IDS Life of New York will maintain assets in the
subaccounts with total market value at least equal to the reserves
and other liabilities required to cover insurance benefits under
all contracts participating in the subaccount.
The fund
IDS Life Series Fund, Inc., a Minnesota corporation, is a
diversified, open-end management investment company incorporated on
May 8, 1985. The fund consists of six portfolios:
Equity Portfolio
Objective: capital appreciation. Invests primarily in common
stocks and other securities convertible into common stock.
Income Portfolio
Objective: to maximize current income while attempting to conserve
the value of the investment and to continue the high level of
income for the longest period of time. At least 50% of net assets
will normally be invested in high-quality, lower-risk corporate
bonds, unrated corporate bonds believed to have the same investment
qualities and government bonds. Other investments may include
lower-rated corporate bonds, bonds and common stocks sold together
as a unit, preferred stock and foreign securities.
<PAGE>
PAGE 15
Money Market Portfolio
Objective: to provide maximum current income consistent with
liquidity and conservation of capital. Invests in relatively
short-term money market securities, such as marketable debt
securities issued or guaranteed as to principal and interest by the
U.S. government or its agencies or instrumentalities, bank
certificates of deposit, bankers' acceptances, letters of credit
and high-grade commercial paper.
Managed Portfolio
Objective: to maximize total investment return through a
combination of capital appreciation and current income. If the
investment manager believes the stock market will be moving higher,
it can emphasize stocks that offer potential for appreciation. At
other times, the manager may increase the portfolio's holdings in
bonds and money-market securities providing high current income.
Government Securities Portfolio
Objective: to provide a high current return and safety of
principal. Invests primarily in debt obligations issued or
guaranteed as to principal and interest by the U.S. government, its
agencies and instrumentalities.
International Equity Portfolio
Objective: capital appreciation. Investments primarily in common
stocks of foreign issuers and foreign securities convertible into
common stock. Other investments may include certain international
bonds if the portfolio manager believes they have greater potential
for capital appreciation than equities.
Portfolio objectives
Portfolio objectives can be changed only if holders of a majority
of outstanding shares agree. Because portfolio investments are
subject to the risk of changing economic conditions and the ability
of the investment manager to anticipate such changes, there can be
no guarantee that the investment objectives of a portfolio will be
achieved.
Relationship between portfolios and subaccounts
Shares of each portfolio are sold to the appropriate subaccount at
net asset value without a sales charge. Dividends and capital gain
distributions from a portfolio are reinvested at net asset value
without a sales charge and retained as an asset of the appropriate
subaccount. Portfolio shares will be redeemed by the appropriate
subaccount, without fee to the subaccount, to the extent necessary
to make death benefit or other payments under the policy.
Portfolio shares are sold only to fund life insurance benefits
under variable life insurance policies issued by IDS Life and IDS
Life of New York. Currently shares are sold only to:<PAGE>
PAGE 16
o the respective subaccounts of the variable account;
o IDS Life Variable Account for Smith Barney;
o IDS Life of New York Account 7; and
o IDS Life Variable Life Separate Account.
Shares may, in the future, be sold to other separate accounts to
fund benefits of other variable life insurance policies and
variable annuity contracts.
IDS Life acts as the investment manager of the fund and receives a
fee for its services as described under "Loads, fees and charges."
American Express Trust Company acts as custodian of the fund's
investments.
Detailed information about the fund, its investment objectives,
policies and risks, and its six separate investment portfolios may
be found in its prospectus.
Diversification: The Internal Revenue Service (IRS) has issued
final regulations relating to the diversification requirements
under Section 817(h) of the Code. Each fund portfolio intends to
comply with these requirements.
Ownership rules: The U.S. Treasury and the IRS have indicated they
may provide additional guidance concerning how many subaccounts may
be offered and how many exchanges among subaccounts may be allowed
before the owner is considered to have investment control and thus
is currently taxed on income earned within subaccount assets. We
do not know at this time what the additional guidance will be or
when action will be taken. We reserve the right to modify the
policy, as necessary, to ensure that the owner will not be subject
to current taxation as the owner of the subaccount assets.
Rates of return of the fund and subaccounts
This section presents actual rates of return first for the six
portfolios of the fund, and then for the six corresponding
subaccounts. Rates of return are different in the two cases
because those of the subaccounts reflect additional charges. All
expenses mentioned in the section are explained fully under "Loads,
fees and charges".
Rates of return of fund portfolios:
In the following table are average annual rates of return based on
the actual investment performance of the fund portfolios after
deduction of applicable portfolio expenses (including the
investment management fees) for the periods indicated. These rates
do not reflect charges that apply to the subaccounts or the policy
and therefore do not illustrate how actual investment performance
will affect policy benefits. Moreover, these rates of return are
not an estimate or guarantee of future performance.
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Period Ending 12/31/95
Portfolio 1 year 3 years 5 years Since inception*
Equity (Beta 1.15**) 38.39% 17.26% 23.04% 14.74%
Income 21.04 9.97 10.97 8.57
Money Market 5.21 3.82 4.09 5.53
Managed (Beta 0.70**) 19.04 12.83 15.93 13.73
Government Securities 18.02 7.99 9.35 7.88
International Equity 39.33 -- -- 30.86
*The portfolios of the fund commenced operations on January 20,
1986. International Equity Portfolio commenced operations on
October 28, 1994.
**Beta is a volatility measure based on calculations of the
portfolio's monthly returns compared to the S&P 500 Index. A beta
less than 1 indicates performance that is less volatile than the
market; a beta more than 1 indicates performance that is more
volatile than the market.
Rates of return of subaccounts
Average annual rates of return in the following table reflect all
charges incurred by the portfolios and charges against the
subaccounts (including the mortality and expense risk charge). The
rates do not reflect the premium expense charge, surrender charge
or monthly deduction.
Subaccount 1 year 3 years 5 years Since inception*
Equity 37.16% 16.21 21.94% 12.83%
Income 19.97 9.00 9.99 9.06
Money Market 4.37 2.94 3.18 4.55
Managed 17.93 11.80 14.88 12.35
Government Securities 16.97 7.03 8.38 8.30
International Equity 37.84 -- -- 29.90
*The subaccounts commenced operations on August 31, 1987.
International Equity subaccount investing in International Equity
Portfolio commenced operations on October 28, 1994.
The trust
Smith Barney Inc. Stripped ("Zero Coupon") U.S. Treasury Securities
Fund, Series A, consists of a unit investment trust. Currently one
is available for investment which matures in 2004.
Objectives and major investments
The objective of the trust is to provide safety of capital and
income through investment in a portfolio consisting primarily of:
o bearer debt obligations issued by the United States that
have been stripped of their unmatured interest coupons,
o coupons stripped from debt obligations of the United States,
and
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o receipts and certificates for such stripped debt obligations
and coupons.
The trust will also contain a Treasury note or notes providing
interest income to pay anticipated expenses of the trust.
U.S. Treasury securities that have been stripped of their unmatured
interest coupons are essentially bonds or notes that pay no
interest. For this reason they are purchased at a deep discount
from their face value and, if held to maturity, return the full
face value.
Before maturity, the value of trust units will be more volatile
than would the value of units of a trust containing unstripped U.S.
Treasury securities of comparable maturities. The value may affect
death benefits and policy value, which will fluctuate accordingly.
Estimated rates of return
Because amounts invested in stripped U.S. Treasury securities will
grow to their face values if held to maturity, we can estimate the
compound rate of growth to maturity, based on certain assumptions
about trust expenses. The net rate of return to maturity is
calculated based on the estimated compound rate of growth in the
units and these charges. Since the value of the trust's units will
vary daily, reflecting the market value of the underlying
securities, the compound rate of growth to maturity and net rate of
return to maturity will also vary daily. Estimated net rates of
return from March 31, 1996 to maturity for the trust, taking
account of anticipated expenses are:
Trust maturity date Net rate of return to maturity
Nov. 15, 2004 6.43%
Rates of return to owners will be less than rates of return for
trust units themselves because the units are held in subaccounts of
the variable account, which are subject to policy charges not
reflected in the above estimates. (See "Loads, fees, and charges"
for a full discussion of applicable charges.)
Trust maturity
On the maturity date of a particular trust, the policy value
allocated to the subaccount that invests in the trust will
automatically be reallocated to the Money Market subaccount, which
invests in the Money Market Portfolio, unless you give us other
directions in writing at least seven days before the maturity date.
We will notify you in writing 30 days before the trust matures.
Roles of Smith Barney Inc. and IDS Life of New York
Smith Barney sponsors the trust and sells units to the subaccounts.
Because the trust invests in a specified portfolio, there is no
investment manager.
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PAGE 19
The price of the trust's units includes a transaction charge, paid
directly by IDS Life of New York to Smith Barney out of IDS Life of
New York's general account assets. This charge is limited by
agreement between IDS Life of New York and Smith Barney and will
not be greater than that ordinarily paid by a dealer for similar
securities. We will seek reimbursement for the amounts paid
through a daily asset charge, described under "Loads, fees and
charges."
Trust units will be sold to the extent necessary for IDS Life of
New York to provide benefits and make reallocation under the
policies. Units will be sold to Smith Barney, which has undertaken
to maintain a secondary market in units of the trust.
IDS Life of New York and Smith Barney reserve the right to
discontinue the sale of new units of a trust and to create
additional trusts in the future.
More detailed information may be found in the current prospectus
for the Smith Barney Inc. Stripped ("Zero Coupon") U.S. Treasury
Securities Fund, Series A.
The fixed account
You can allocate premiums to the fixed account or transfer policy
value from the subaccounts to the fixed account (with certain
restrictions, explained in "Transfers between the fixed account and
subaccounts").
The fixed account is the general investment account of IDS Life of
New York. It includes all assets owned by IDS Life of New York
other than those in the variable account and other separate
accounts. Subject to applicable law, IDS Life of New York has sole
discretion to decide how assets of the fixed account will be
invested.
Placing policy value in the fixed account does not entitle you to
share in the fixed account's investment experience, nor does it
expose you to the account's investment risk. Instead, IDS Life of
New York guarantees that the policy value you place in the fixed
account will accrue interest at an effective annual rate of at
least 4.5%, independent of the actual investment experience of the
account. IDS Life of New York bears the full investment risk for
amounts allocated to the fixed account.
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PAGE 20
IDS Life of New York is not obligated to credit interest at any
rate higher than 4.5%, although we may do so at our sole
discretion. In recent years interest was credited as follows:
1987 8.75 to 9.25%
1988 8.0 to 9.25%
1989 8.25 to 9.5%
1990 8.25 to 9.2%
1991 7.55 to 8.55%
1992 6.5 to 8.05%
1993 5.7 to 7.4%
1994 5.7 to 7.6%
1995 5.75 to 7.6%
These rates are not indicative of future interest rates. The rate
of return to you as owner will be less than the rate credited
because policy charges (described under "Loads, fees and charges")
reduce your net return.
Interest in excess of 4.5% will not be credited on any portion of
policy value in the fixed account against which you have a policy
loan outstanding.
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933, and the fixed account has not been registered as an
investment company under the Investment Company Act of 1940.
Accordingly, neither the fixed account nor any interests in it are
subject to the provisions of these Acts, and the staff of the SEC
has not reviewed the disclosures in this prospectus relating to the
fixed account. Disclosures regarding the fixed account may,
however, be subject to certain generally applicable provisions of
the federal securities laws relating to the accuracy and
completeness of statements made in prospectuses.
Purchasing your policy
Application
To apply for coverage, complete an application and send it with
your premium payment to IDS Life of New York's home office. In
your application, you:
o select a specified amount of insurance;
o select a death benefit option;
o designate a beneficiary; and
o state how premiums are to be allocated among the fixed
account and/or the subaccounts.
Insurability: Before issuing your policy, IDS Life of New York
requires satisfactory evidence of the insurability of the person
whose life you propose to insure (yourself or someone else). Our
underwriting department will review your application and any
medical information or other data required to determine whether the
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PAGE 21
proposed individual is insurable under our underwriting rules. Your
application may be declined if IDS Life of New York determines the
individual is not insurable and any premium you have paid will be
returned.
Age limit: IDS Life of New York generally will not issue a policy
to persons over the insurance age of 75. It may, however, do so at
its sole discretion.
Rate classification: The rate classification is based on the
insured's health, occupation or other relevant underwriting
standards. This classification will affect your monthly deduction
and may affect the cost of certain optional insurance benefits.
(See "Loads, fees and charges" and "Optional insurance benefits.")
Other conditions: In addition to proving insurability, you and the
insured must also meet certain conditions, stated in the
application form, before coverage will become effective and your
policy will be delivered to you.
Death of the insured: If the insured dies before the policy is
issued and:
o if all conditions stated in the application have not been
met, IDS Life of New York's sole liability will be to
return the premium paid plus any interest earned.
o if all conditions stated in the application have been
met, IDS Life of New York's liability will be the lesser
of the death benefit applied for or $150,000.
Incontestability: IDS Life of New York will have two years from the
effective date of your policy to contest the truth of statements or
representations in your application. After the policy has been in
force during the insured's lifetime for two years from the policy
date, IDS Life of New York cannot contest the policy.
Right to examine policy
You may return your policy for any reason and receive a full refund
of all premiums paid. To do so, you must mail or deliver the
policy to IDS Life of New York or your financial advisor with a
written request for cancellation, by the latest of:
o the 10th day after you receive it;
o the 10th day after IDS Life of New York mails or
personally delivers a written notice of withdrawal right;
or
o the 45th day after you sign your application.
On the date your request is postmarked or received, the policy will
immediately be considered void from the start.
<PAGE>
PAGE 22
Premiums
Payment of premiums:
In applying for your policy, you decide how much you intend to pay
and how often you will make payments. During the first several
policy years, IDS Life of New York requires that premiums
sufficient to keep the death benefit guarantee in effect be paid to
keep the policy in force.
You may schedule payments annually, semiannually or quarterly.
(Payment at any other interval must be approved by IDS Life of New
York.) This premium schedule is shown in your policy.
The scheduled premium serves only as an indication of your intent
as to the frequency and amount of future premium payments. You may
skip scheduled premium payments at any time if your cash surrender
value is sufficient to pay the monthly deduction or if the death
benefit guarantee will remain in effect.
You may also change the amount and frequency of scheduled premium
payments by written request. IDS Life of New York reserves the
right to limit the amount of such changes. Any change in the
premium amount is subject to applicable tax laws and regulations.
Although you have flexibility in paying premiums, the amount and
frequency of your payments will affect the policy value, cash
surrender value and length of time your policy will remain in
force, as well as affect whether the death benefit guarantee
remains in effect.
Premium limitations:
You may make unscheduled premium payments at any time and in any
amount from $25 to $500,000. IDS Life of New York reserves the
right to limit the number and amount of unscheduled premium
payments.
Also, in order to receive favorable tax treatment under the Code,
premiums paid during the life of the policy must not exceed certain
limitations. To comply with the Code, IDS Life of New York can
either refuse excess premiums as they are paid or refund excess
premiums with interest no later than 60 days after the end of the
policy year in which they were paid.
Allocation of premiums:
Until your application is approved by IDS Life of New York, we hold
all premiums in the fixed account and we credit interest on the net
premiums (gross premiums minus premium expense charge) at the
current fixed account rate. As of the date your application is
approved, we will allocate the net premiums plus accrued interest
to the account(s) you have selected in your application. At that
time, we will begin to assess the various loads, fees, charges and
expenses.
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PAGE 23
Any amount allocated to a subaccount is converted into accumulation
units of that subaccount, as explained under "Policy value."
Similarly, when transferring value between subaccounts,
accumulation units in one subaccount are converted into a cash
value, which is then converted into accumulation units of the
second subaccount.
Your ability to allocate policy value to the trust may be limited
by the availability of trust units.
Loads, fees and charges
Policy charges compensate IDS Life of New York for:
o providing the insurance benefits of the policy;
o issuing the policy;
o administering the policy;
o assuming certain risks in connection with the policy; and
o distributing the policy.
Some of these charges are deducted from your premium payments.
Others are deducted periodically from your policy value in the
fixed and/or subaccounts. You may also be assessed a charge if you
surrender your policy or the policy lapses.
Premium expense charge
We deduct this charge from each premium payment. The amount
remaining after the deduction, called the net premium, is credited
to the account(s) you have selected. The premium expense charge
has two parts:
Sales charge: 2.5% of each premium payment. Partially compensates
IDS Life of New York for expenses in distributing the policy,
including agents' commissions, advertising and printing of
prospectuses and sales literature. (These expenses also may be
partially compensated by the contingent deferred sales charge,
discussed under "Surrender charge," below.)
Premium tax charge: 1% of each premium payment. Compensates
IDS Life of New York for paying taxes imposed by the state of New
York on premiums received by insurance companies.
Monthly deduction
On each monthly date we deduct from the value of your policy in the
fixed and/or subaccounts an amount equal to the sum of:
1. the cost of insurance for the policy month;
2. the policy fee shown in your policy;
3. the death benefit guarantee charge shown in your policy;
and
4. charges for any optional insurance benefits provided by
rider for the policy month.
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PAGE 24
Each of the four components is explained below.
You specify, in your policy application, what percentage of the
monthly deduction from 0% to 100% will be taken from the fixed
account and from each of the subaccounts. You may change these
percentages for future monthly deductions by written request.
Monthly deductions will be taken from the fixed account and the
subaccounts on a pro rata basis if:
o you do not specify the accounts from which the monthly
deduction is to be taken; or
o the value in the fixed account or any subaccount is
insufficient to pay the portion of the monthly deduction you
have specified.
If the cash surrender value of your policy is not enough to cover
the monthly deduction on a monthly anniversary, the policy may
lapse. However, the policy will not lapse if the death benefit
guarantee is in effect. (See "Death benefit guarantee"; also "Grace
period" and "Reinstatement" at the end of this section on policy
costs.)
Components of the monthly deduction:
1. Cost of insurance: primarily, the cost of providing the death
benefit under your policy, which depends on:
o the amount of the death benefit;
o the policy value; and
o the statistical risk that the insured will die in a
given period.
The cost of insurance for a policy month is calculated as:
[a x (b - c)] + d
where:
(a) is the monthly cost of insurance rate, which reflects the
insured's statistical mortality risk, based on his or her sex,
attained insurance age (age at last policy anniversary) and rate
classification. Generally, the cost of insurance rate will
increase as the insured's attained insurance age increases.
Rates are set by IDS Life of New York, based on its expectations as
to future mortality experience. We may change the rates from time
to time; any change will apply to all individuals of the same rate
classification. However, rates will not exceed the Guaranteed
Maximum Monthly Cost of Insurance Rates shown in your policy, which
are based on the 1980 Commissioners Standard Ordinary Smoker and
Nonsmoker Mortality Tables, Age Nearest Birthday.
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PAGE 25
Policies purchased on or after May 1, 1991 with an initial
specified amount of $350,000 or greater qualify for lower cost of
insurance rates than policies purchased with a specified amount
less than $350,000. In addition, all policies purchased on or
after May 1, 1993 qualify for lower cost of insurance rates than
policies purchased earlier.
(b) is the death benefit on the monthly date divided by 1.0036748
(which reduces IDS Life of New York's net amount at risk, solely
for computing the cost of insurance, by taking into account assumed
monthly earnings at an annual rate of 4.5%);
(c) is the policy value on the monthly date. At this point, the
policy value has been reduced by the policy fee, death benefit
guarantee charge and any charges for optional riders;
(d) is any flat extra insurance charges assessed as a result of
special underwriting considerations.
2. Policy fee: $5 per month. This charge reimburses IDS Life of
New York for expenses of issuing the policy, such as processing the
application (primarily underwriting) and setting up computer
records; and of administering the policy, such as processing
claims, maintaining records, making policy changes and
communicating with owners. IDS Life of New York does not expect to
make any profit on this charge.
3. Death benefit guarantee charge: 1 cent per $1,000 of the current
specified amount and 1 cent per $1,000 of coverage under any other
insured rider. This charge compensates IDS Life of New York for
the risk assumed in providing the death benefit guarantee. The
charge is included in the monthly deduction in the first five
policy years or until the insured's attained insurance age 65,
whichever is later. The charge will not be deducted if the death
benefit guarantee is no longer in effect. For any policy month in
which the monthly deduction is paid by a waiver of monthly
deduction rider, the minimum monthly premium will be zero. (See
"Death benefit guarantee," later in this section for an explanation
of the minimum monthly premium and "Other insured rider," under
"Optional insurance benefits.")
4. Optional insurance benefit charges: charges for any optional
benefits added to the policy by rider. See "Optional insurance
benefits."
Surrender charge
If you surrender your policy or the policy lapses during the first
10 policy years and in the 10 years following an increase in
specified amount a surrender charge will be assessed. The
surrender charge is the sum of two parts:
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PAGE 26
Contingent deferred issue and administrative expense charge:
Reimburses IDS Life of New York for costs of issuing the policy,
such as processing the application (primarily underwriting) and
setting up computer records. IDS Life of New York does not expect
to make a profit on this charge. For the initial specified amount,
this charge is $4 per thousand dollars of initial specified amount.
It remains level during the first five policy years and then
decreases monthly until it is zero at the end of 10 policy years.
If the specified amount of the policy is increased, an additional
charge will apply. The additional charge will be $4 per thousand
dollars of increase in specified amount. It remains level during
the first five years following the effective date of the increase
and then decreases monthly until it is zero at the end of the 10th
year following the increase.
Contingent deferred sales charge:
Partially compensates IDS Life of New York for expenses of
distributing the policy, including financial advisors' commissions,
advertising and printing the prospectus and sales literature. For
the initial specified amount, this charge is the sum of 27.5% of
premium payments up to a maximum amount shown in the policy plus
6.5% of all other premium payments. The maximum amount shown in
the policy will be based on the insured's insurance age, sex, rate
classification and initial specified amount. If the specified
amount of the policy is increased, an additional charge will apply.
The additional charge will be 6.5% of all premium payments
attributable to the increase. Premiums attributable to the
increase are calculated as
a x (b + c)
where:
(a) is the amount of the increase in the specified amount divided
by the total specified amount after the increase;
(b) is the policy value on the date of the increase; and
(c) is all premium payments paid on or after the date of the
increase.
Maximum surrender charge:
The total surrender charge is subject to an overall upper limit or
"maximum surrender charge." The "maximum surrender charge" for the
initial specified amount will be shown in the policy. It is based
on the insured's insurance age, sex, rate classification and
initial specified amount. The "maximum surrender charge" for the
initial specified amount will remain level during the first five
policy years and then decrease monthly until it is zero at the end
of 10 policy years. If the specified amount is increased, an
"additional maximum surrender charge" will apply. The "additional
maximum surrender charge" will be shown in a revised policy. It
will be based on the insured's attained insurance age, sex, rate
classification and the amount of the increase. The "additional
maximum surrender charge" will remain level during the first five<PAGE>
PAGE 27
years following the effective date of the increase and then
decrease monthly until it is zero at the end of the 10th year
following the increase.
If premium payments are equal to or somewhat higher than the
premiums needed to keep the death benefit guarantee in effect, for
several years the surrender charge will generally be the charge
described in the "Contingent deferred issue and administrative
expense charge" and "Contingent deferred sales charge" sections
above. After that, the "Maximum surrender charge" will generally
apply. If premium payments are paid at a significantly higher
level, the "Maximum surrender charge" will generally apply in all
years.
Partial surrender fee
If you surrender part of the value of your policy, you will be
charged $25 (or 2% of the amount surrendered, if less). This fee
is guaranteed not to increase for the duration of your policy. IDS
Life of New York does not expect to make a profit on this fee.
Mortality and expense risk charge
This charge applies only to the subaccounts and not to the fixed
account. It is equal, on an annual basis, to 0.9% of the daily net
asset value of the subaccounts -- a level guaranteed for the life
of the policy. The subaccounts pay this fee at the time that
dividends are distributed from the funds in which they invest.
Computed daily, the charge compensates IDS Life of New York for:
o Mortality risk -- the risk that the cost of insurance
charge will be insufficient to meet actual claims.
o Expense risk -- the risk that the policy fee and the
contingent deferred issue and administrative expense
charge (described above) may be insufficient to cover the
cost of administering the policy.
IDS Life of New York may profit from the mortality and expense risk
charge. Any such profit would be available to IDS Life of New York
for any proper corporate purpose including, among others, payment
of sales and distribution expenses, which we do not expect to be
covered by the sales and surrender charges discussed earlier. Any
further deficit will have to be made up from IDS Life of New York's
general assets.
Transaction charge
IDS Life of New York makes a daily charge against the assets of the
subaccount that invests in the trust. This charge is intended to
reimburse us for the transaction fee we pay from our general
account assets to Smith Barney Inc. on the sale of the trust units
to the subaccounts.
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PAGE 28
The asset charge is equivalent to an effective annual rate of 0.25%
of the value of the subaccounts investing in the trust. This
amount may be increased in the future but will not exceed an
effective annual rate of 0.5% of the value of these subaccounts.
The charge will be based on our costs (taking into account the
interest we lose on the amounts paid to Smith Barney). We do not
expect to profit from this transaction charge.
Fund expenses
IDS Life receives a fee for its services as investment manager of
the fund. The fund also pays taxes, brokerage commissions and
nonadvisory expenses, such as custodian and trustee fees,
registration fees for shares, postage, fidelity, and security bond
costs, legal fees and other miscellaneous fees and charges. IDS
Life has agreed to a voluntary limit of 0.1%, on an annual basis,
of the average daily net assets of each portfolio for these
nonadvisory expenses. IDS Life reserves the right to discontinue
limiting these nonadvisory expenses at 0.1%. However, its present
intention is to continue to limit until the time that actual
expenses are less than the limit.
The investment management fee is deducted from the fund portfolios
daily and paid to IDS Life monthly.
The investment management fee equals, on an annual basis:
o Money Market Portfolio -- 0.5% of aggregate average daily
net assets
o Equity, Income, Managed and Government Securities Portfolios
-- 0.7% of aggregate average daily net assets
o International Equity Portfolio -- 0.95% of aggregate average
daily net assets
Other information on charges:
IDS Life of New York may reduce or eliminate various fees and
charges when we incur lower sales costs and/or perform fewer
administrative services than usual. The two most common cases are:
o Policies made available by an employer to a group of
employees.
o Policies purchased on or after May 1, 1991 with an initial
specified amount of $350,000 or greater.
Death benefit guarantee
Your policy will remain in force even if the cash surrender value
is insufficient to cover the monthly deduction if you have paid the
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PAGE 29
minimum monthly premiums shown in the policy. Although the minimum
premium is specified as a monthly amount, you may pay on any
schedule you choose, as long as:
the sum of premiums paid - partial surrenders - outstanding
indebtedness
equals or exceeds
minimum monthly premium x number of months since policy date
(including the current month)
This guarantee applies only until the insured reaches attained
insurance age 65 or the policy has been in force for five years,
whichever is later. For factors affecting the minimum monthly
premium, see "Changes in specified amount" under "Death benefit"
and "Optional insurance benefits."
If, on a monthly date, you have not paid enough premiums to keep
the death benefit guarantee in effect, we will mail a notice to
your last known address, asking you to pay a premium sufficient to
bring your total up to the required minimum. If you do not pay
this amount within 61 days, your policy will lapse (terminate) if
the cash surrender value is less than the amount needed to pay the
monthly deduction. Although the policy can be reinstated as
explained below, the death benefit guarantee cannot be reinstated.
Grace period
If on a monthly date the cash surrender value of your policy is
less than the amount needed to pay the next monthly deduction, your
policy will still remain in force for at least 61 days.
IDS Life of New York will mail a notice to your last known address,
requesting payment of a premium that will raise the cash surrender
value to an amount sufficient to cover the next three monthly
deductions. If we receive this premium before the end of the
61-day grace period, we will use the payment to cover all monthly
deductions and any other charges then due. Any balance will be
added to the policy value and allocated in the same manner as other
premium payments. If you do not pay the premium, the policy will
lapse without value, unless the death benefit guarantee described
above is in effect.
If a policy lapses with outstanding indebtedness, any excess of the
outstanding indebtedness over the premium paid generally will be
taxable to the owner. (See "Federal taxes.") If the insured dies
during the grace period, any overdue monthly deductions will be
deducted from the death benefit.
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Reinstatement
Your policy may be reinstated within five years after it lapses,
unless you surrendered it for cash. To reinstate, IDS Life of New
York will require:
o a written request;
o evidence satisfactory to IDS Life of New York that the
insured remains insurable;
o payment of a premium that will keep the policy in force
for at least three months;
o payment of the monthly deductions that were not collected
during the grace period; and
o payment or reinstatement of any indebtedness.
The effective date of a reinstated policy will be the monthly date
on or next following the day IDS Life of New York accepts your
application for reinstatement. The suicide period (see "Death
benefits") will apply from the effective date of reinstatement.
Surrender charges will also be reinstated.
IDS Life of New York will have two years from the effective date of
reinstatement to contest the truth of statements or representations
in the reinstatement application.
Policy value
The value of your policy is the sum of values in the fixed account
and each subaccount of the variable account.
Fixed account value
The value in the fixed account on the policy date (when the policy
is issued) equals the portion of your initial net premium that you
have allocated to the fixed account, plus interest accrued before
the policy date, minus the portion of the monthly deduction for the
first policy month that you have allocated to the fixed account.
On any later date, the value in the fixed account equals:
o the value on the previous monthly date; plus
o net premiums allocated to the fixed account since the last
monthly date; plus
o any transfers to the fixed account from the subaccounts,
including loan transfers, since the last monthly date; plus
o accrued interest on all of the above; minus
o any transfers from the fixed account to the subaccounts,
including loan repayment transfers, since the last monthly
date; minus
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PAGE 31
o any partial surrenders or partial surrender fees allocated
to the fixed account since the last monthly date; minus
o interest on any transfers or partial surrenders, from the
date of the transfer or surrender to the date of
calculation; minus
o any portion of the monthly deduction for the coming month
that is allocated to the fixed account if the date of
calculation is a monthly date.
Subaccount values
The value in each subaccount changes daily, depending on the
investment performance of the fund portfolio or trust in which that
subaccount invests and on other factors detailed below. There is
no guaranteed minimum subaccount value. You as owner bear the
entire investment risk.
Calculation of subaccount value: The value of each subaccount on
each valuation date equals:
o the value of the subaccount on the preceding valuation date,
multiplied by the net investment factor for the current valuation
period (explained below); plus
o net premiums received and allocated to the subaccount during the
current valuation period; plus
o any transfers to the subaccount (from the fixed account or
other subaccounts, including loan repayment transfers) during the
period; minus
o any transfers from the subaccount including loan transfers
during the current valuation period; minus
o any partial surrenders and partial surrender fees allocated to
the subaccount during the period; minus
o any portion of the monthly deduction allocated to the subaccount
during the period.
The net investment factor measures the investment performance of a
subaccount from one valuation period to the next. Because
performance may fluctuate, the value of a subaccount may increase
or decrease from day to day.
Accumulation units: The policy value allocated to each subaccount
is converted into accumulation units. Each time you direct a
premium payment or transfer policy value into one of the
subaccounts, a certain number of accumulation units are credited to
your policy for that subaccount. Conversely, each time you take a
partial surrender or transfer value out of a subaccount, a certain
number of accumulation units are subtracted.
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Accumulation units are the true measure of investment value in each
subaccount. For subaccounts investing in the fund portfolios,
they're related to, but not the same as, the net asset value of the
corresponding fund portfolio. The dollar value of each
accumulation unit can rise or fall daily, depending on the
investment performance of the underlying fund portfolio, on any
change in the value of trust units and on certain charges. Here's
how unit values are calculated:
Number of units: To calculate the number of units for a particular
subaccount, we divide your investment (net premium or transfer
amount) by the current accumulation unit value.
Accumulation unit value: The current value for each subaccount
equals the last value times the current net investment factor.
Net investment factor: Determined at the end of each valuation
period, this factor equals (a divided by b) - c, where:
(a) equals:
o net asset value per share of the portfolio or value of a unit of
the trust; plus
o per-share amount of any dividend or capital gain distribution
made by the relevant fund portfolio to the subaccount; plus
o any credit or minus any charge for reserves to cover any tax
liability resulting from the investment operations of the
subaccount.
(b) equals:
o net asset value per share of the portfolio or value of a unit of
the trust at the end of the preceding valuation period; plus
o any credit or minus any charge for reserves to cover any tax
liability in the preceding valuation period.
(c) is a percentage factor representing the mortality and expense
risk charge and, for the subaccount investing in the trust, the
transaction charge, as described in "Loads, fees and charges,"
above.
Factors that affect subaccount accumulation units:
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the subaccounts;
o transfers into or out of the subaccount(s);
o partial surrenders and partial surrender fees;
o surrender charges; and/or
o monthly deductions.<PAGE>
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Accumulation unit values may fluctuate due to:
o changes in underlying fund portfolio(s) net asset value or the
value of the trust;
o dividends distributed to the subaccount(s);
o capital gains or losses of underlying fund portfolios;
o fund portfolio operating expenses;
o mortality and expense risk fees; and/or
o the transaction charge for the subaccount investing in the trust.
Death benefits
When you purchase your policy, you decide on the minimum amount of
protection you want for the beneficiary if the insured dies. This
amount is called the specified amount. Your policy's death benefit
can never be less than this amount unless you change it or unless
your policy has an outstanding indebtedness.
You also choose one of two death benefit options, which determines
how the policy's value will affect the amount paid to the
beneficiary if the insured dies while the policy is in force:
Option 1 (level amount): Under this option, the policy's value is
part of the specified amount. The Option 1 death benefit is the
greater of:
o the specified amount on the date of the insured's death; or
o the applicable percentage of the policy value on the date of
death, if death occurs on a valuation date, or on the next
valuation date following the date of death. (See table
below.)
Thus, the death benefit remains level -- at the specified amount --
as long as the applicable percentage of policy value is less than
or equal to that amount. Only when the applicable percentage of
policy value exceeds the specified amount will the death benefit
vary with the policy value. After attained insurance age 40, the
applicable percentage decreases as the insured's age increases.
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Applicable percentage table
Insured's Applicable Insured's Applicable
attained percentage of attained percentage of
insurance policy insurance policy
age value age value
40 or younger 250% 61 128%
41 243 62 126
42 236 63 124
43 229 64 122
44 222 65 120
45 215 66 119
46 209 67 118
47 203 68 117
48 197 69 116
49 191 70 115
50 185 71 113
51 178 72 111
52 171 73 109
53 164 74 107
54 157 75-95 105
55 150 96 104
56 146 97 103
57 142 98 102
58 138 99 101
59 134 100 100
60 130
Option 2 (variable amount): Under this option, the policy value is
added to the specified amount. The Option 2 death benefit is the
greater of:
o the policy value plus the specified amount; or
o the applicable percentage of policy value (from the
preceding table) on the date of death, if death occurs on a
valuation date, or on the next valuation date following the
date of death.
Under Option 2 the death benefit will always vary as the policy
value varies. The death benefit will equal the sum of the
specified amount plus the policy value until the applicable
percentage of the policy value exceeds that sum.
Examples: Option 1 Option 2
specified amount $100,000 $100,000
policy value $ 5,000 $ 5,000
death benefit $100,000 $105,000
policy value increases to $ 8,000 $ 8,000
death benefit $100,000 $108,000
policy value decreases to $ 3,000 $ 3,000
death benefit $100,000 $103,000
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PAGE 35
If you want to have premium payments and favorable investment
performance reflected partly in the form of an increasing death
benefit, you should consider Option 2. If you are satisfied with
the specified amount of insurance protection and prefer to have
premium payments and favorable investment performance reflected to
the maximum extent in the policy value, you should consider Option
1. Under Option 1, the cost of insurance is lower because IDS Life
of New York's net amount at risk is generally lower; for this
reason the monthly deduction is less and a larger portion of your
premiums and investment returns is retained in the policy value.
Change in death benefit option
You may make a written request to change the death benefit option
once per policy year. A change in the death benefit option also
will change the specified amount. You do not need to provide
additional evidence of insurability.
If you change from Option 1 to Option 2: The specified amount will
decrease by an amount equal to the policy value on the effective
date of the change. You cannot change from Option 1 to Option 2 if
the resulting specified amount would fall below the minimum
specified amount (currently $50,000 for the first two policy years,
$40,000 in years three through 10 and $25,000 thereafter).
The minimum specified amount for policies purchased on or after May
1, 1991 with an initial specified amount of $350,000 or more is
$350,000 in the first policy year, $325,000 in years two to five,
$300,000 in years six to 10 and $275,000 thereafter.
If you change from Option 2 to Option 1: The specified amount will
increase by an amount equal to the policy value on the effective
date of the change.
An increase or decrease in specified amount resulting from a change
in the death benefit option will affect the monthly deduction
because the cost of insurance and the death benefit guarantee
charge both depend upon the specified amount. The charge for
certain optional insurance benefits may also change. The surrender
charge, however, will not be affected.
Changes in specified amount
Subject to certain limitations, you may make a written request to
increase or decrease the specified amount once each policy year
after the first. Changes in specified amount may have tax
implications, discussed in the section "Modified endowment
contracts" under "Federal taxes."
Increases: If you increase the specified amount, additional
evidence of insurability that is satisfactory to IDS Life of New
York may be required. 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 $10,000, and no
increase will be permitted after the insured's attained insurance
age 75. <PAGE>
PAGE 36
An increase in the specified amount will have the following effects
on policy charges:
o Your monthly deduction will increase because the cost of
insurance and the death benefit guarantee charge both depend
upon the specified amount.
o Charges for certain optional insurance benefits will
increase.
o The minimum monthly premium will increase if the death
benefit guarantee is in effect.
o The surrender charge will increase.
At the time of the increase in specified amount, the cash surrender
value of your policy must be sufficient to pay the monthly
deduction on the next monthly anniversary. The increased surrender
charge will reduce the cash surrender value. If the remaining cash
surrender value is not sufficient to cover the monthly deduction,
we will require you to pay additional premiums within the 61-day
grace period. If you do not, the policy will lapse unless the
death benefit guarantee is in effect. Because the minimum monthly
premium will increase, additional premiums may also be required to
keep the death benefit guarantee in effect.
Decreases: Any decrease in specified amount will take effect on the
monthly anniversary on or next following our receipt of your
written request. The specified amount remaining after the decrease
may not be less than the minimum specified amount (currently
$50,000 for the first two policy years, $40,000 in years three
through 10, and $25,000 thereafter). If, following a decrease in
specified amount, the policy would no longer qualify as life
insurance under federal tax law, the decrease may be limited to the
extent necessary to meet these requirements.
The minimum specified amount for policies purchased on or after May
1, 1991 with an initial specified amount of $350,000 or more is
$350,000 in the first policy year, $325,000 in years two to five,
$300,000 in years six to 10 and $275,000 thereafter.
A decrease in specified amount will affect your costs as follows:
o Your monthly deduction will decrease because the cost of
insurance and the death benefit guarantee charge both depend
upon the specified amount.
o Charges for certain optional insurance benefits will
decrease.
o The minimum monthly premium will decrease if the death
benefit guarantee is in effect.
o The surrender charge will not change.
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No surrender charge is imposed when you request a decrease in the
specified amount.
Decreases in the specified amount will be deducted from the current
specified amount in this order:
1. First from the portion due to the most recent increase;
2. Next from portions due to the next most recent increases
successively; and
3. Then from the initial specified amount when the policy was
issued.
This procedure may affect the cost of insurance if different rate
classifications have been applied to the current specified amount.
The rate classification applicable to the most recent increase in
the specified amount will be eliminated first, then the rate
classification applicable to the next most recent increase, and so
on.
Misstatement of age or sex
If the insured's age or sex has been misstated, the proceeds
payable upon death will be:
o the policy value on the date of death; plus
o the amount of insurance that would have been purchased by
the cost of insurance deducted for the policy month
during which death occurred, if that cost had been
calculated using rates for the correct age and sex; minus
o the amount of any outstanding indebtedness on the date of
death.
Suicide
Suicide by the insured, whether sane or insane, within two years
from the policy date is not covered by the policy. If suicide
occurs, the only amount payable to the beneficiary will be the
premiums paid, minus the amount of any outstanding indebtedness.
Beneficiary
Initially, the beneficiary will be the person you designate in your
application for the policy. You may change the beneficiary by
giving written notice to IDS Life of New York, subject to
requirements and restrictions stated in the policy. If you do not
designate a beneficiary, or if the designated beneficiary dies
before the insured, the beneficiary will be you or your estate.
Transfers between the fixed account and subaccounts
You may transfer policy values from one subaccount to another or
between subaccounts and the fixed account. For most transfers, if
we receive your request before the close of business, we will
process it that day. Requests received after the close of business
will be processed the next business day. There is no charge for
transfers. Before transferring policy value, you should consider
the risks involved in switching investments. <PAGE>
PAGE 38
We may suspend or modify the transfer privilege at any time.
Transfers involving the fixed account are subject to the
restrictions below.
Fixed account transfer policies
o Transfers from the fixed account must be made during a 30-day
period starting on a policy anniversary, except for automated
transfers, which can be set up for monthly, quarterly or semiannual
transfer periods.
o If we receive your request to transfer funds from the fixed
account within 30 days before the policy anniversary, the transfer
will become effective on the anniversary.
o If we receive your request on or within 30 days after the policy
anniversary, the transfer will be effective on the day we receive
it.
o We will not accept requests for transfers from the fixed account
at any other time.
o If you have made a transfer from the fixed account to one or more
subaccounts, you may not make a transfer from any subaccount back
to the fixed account until the next policy anniversary. We will
waive this limitation once during the first two policy years if you
exercise the policy's right to exchange provision. (See "Exchange
right.")
Minimum transfer amounts
From a subaccount to another subaccount or the fixed account: For
mail and phone transfers, $250 or the entire subaccount balance,
whichever is less. For automated transfers, $50.
From the fixed account to a subaccount: $250 or the entire fixed
account balance minus any outstanding indebtedness, whichever is
less. For automated transfers, $50.
Maximum transfer amounts
From a subaccount to another subaccount or the fixed account: None.
From the fixed account to a subaccount: Entire fixed account
balance minus any outstanding indebtedness.
Maximum number of transfers per year
Five for mail and phone transfers. Twelve for automated transfers.
Two ways to request a transfer, loan or surrender
Provide your name, policy number, Social Security Number or
Taxpayer Identification Number when you request a transfer.
<PAGE>
PAGE 39
1 By letter
Regular mail:
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, NY 12205
Express mail:
IDS Life Insurance Company of New York
20 Madison Ave. Extension
Albany, NY 12203
2 By phone
Call between 8 a.m. and 6 p.m. Eastern Time:
1-800-541-2251 (toll free) or
(518) 869-8613 (Albany area)
o We answer phone requests promptly, but you may experience delays
when call volume is unusually high. If you are unable to get
through, use mail procedure as an alternative.
o We will honor any telephone transfer or surrender request
believed to be authentic and will use reasonable procedures to
confirm that they are. These include asking identifying questions
and tape recording calls. As long as these procedures are
followed, neither IDS Life of New York nor its affiliates will be
liable for any loss resulting from fraudulent requests.
o Telephone transfers are automatically available. You may request
that telephone transfers not be authorized from your account by
writing IDS Life of New York.
Automated transfers
In addition to written and phone requests, you can arrange to have
policy value transferred from one account to another automatically.
Your financial advisor can help you set up an automated transfer.
Automated transfer policies:
o Minimum automated transfer: $50
o Frequency: monthly, quarterly, semiannually or annually
o Only one automated transfer arrangement can be in effect at any
time. Policy values may be transferred to one or more subaccounts
and the fixed account but can be transferred from only one account.
o You can start or stop this service by written request. You must
allow seven days for us to change any instructions that are
currently in place.
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PAGE 40
o Automated transfers from the fixed account may not exceed an
amount that, if continued, would deplete the fixed account within
12 months.
o If you have made a transfer from the fixed account to one or more
subaccounts, you may not make a transfer from any subaccount back
to the fixed account until the next policy anniversary.
o If your request is submitted with an application for a policy, it
will not take effect until the policy is issued.
o If the value of the account from which policy value is being
transferred is less than the $50 minimum, the transfer arrangement
will automatically be stopped.
o Automated transfers are subject to all other policy provisions
and terms including provisions relating to the transfer of money
between the fixed account and the subaccounts.
Automated dollar-cost averaging
You can use automated transfers to take advantage of dollar-cost
averaging -- investing a fixed amount at regular intervals. For
example, you might have a set amount transferred monthly from a
relatively conservative subaccount to a more aggressive one, or to
several others.
This systematic approach can help you benefit from fluctuations in
accumulation unit value, caused by fluctuations in the market
value(s) of the underlying fund portfolio. Since you invest the
same amount each period, you automatically acquire more units when
the market value falls, fewer units when it rises. The potential
effect is to lower your average cost per unit.
How dollar-cost averaging works
Amount Accumulation Number of units
Month invested unit value purchased
Jan $100 $20 5.00
Feb 100 16 6.25
Mar 100 9 11.11
Apr 100 5 20.00
May 100 7 14.29
June 100 10 10.00
July 100 15 6.67
Aug 100 20 5.00
Sept 100 17 5.88
Oct 100 12 8.33
(footnotes to table) By investing an equal number of dollars each
month...
(arrow in table pointing to April) you automatically buy more units
when the per unit market price is low.
<PAGE>
PAGE 41
(arrow in table pointing to August) and fewer units when the per
unit market price is high.
You have paid an average price of $10.81 per unit over the 10
months, while the average market price actually was $13.10.
Dollar-cost averaging does not guarantee that any subaccount will
gain in value, nor will it protect against a decline in value if
market prices fall. However, if you can continue to invest
regularly throughout changing market conditions, it can be an
effective strategy to help meet your long-term goals.
Policy loans
You may borrow against your policy by written or telephone request.
(See chart under "Transfers between the fixed account and
subaccounts" for address and phone numbers for your requests.)
Loans by telephone are limited to $50,000. A loan request received
before close of business will be processed the same day. A request
received after close of business will be processed the following
business day.
Interest rate: 6.1% payable in advance, which is equivalent to a
6.5% effective rate. For policies purchased on or after May 1,
1993, we expect to reduce the loan interest rate after a policy's
10th anniversary to 4.3% payable in advance, equivalent to a 4.5%
effective rate.
Minimum loan: $200 or the remaining loan value, whichever is less.
Maximum loan: 85% of the policy value minus surrender charges.
We will compute the maximum loan value as of the end of the
valuation period during which we receive your loan request. In
doing so, we will deduct from the loan value interest for the
period until the next policy anniversary.
Payment of loaned funds: Generally, we will pay loans within seven
days after we receive your request (with certain exceptions -- see
"Deferral of payments," under "Payment of policy proceeds").
Allocation of loans to accounts: If you do not specify whether the
loan is to come from the fixed account or the subaccounts, it will
be made from the subaccounts and the fixed account in proportion to
their values, minus indebtedness. When a loan is made from a
subaccount, accumulation units are redeemed and the proceeds
transferred into the fixed account. We will credit the loaned
amount with 4.5% annual interest.
Repayments: Loan repayments will be allocated to subaccounts and/or
the fixed account using the premium allocation percentages in
effect unless you tell us otherwise. Repayments must be in amounts
of at least $25.
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PAGE 42
Overdue interest: If accrued interest is not paid when due, we will
increase the amount of indebtedness in the fixed account to cover
the amount due. Interest added to a policy loan will be charged
the same interest rate as the loan itself. We will take such
interest from the fixed account and/or subaccounts, using the
monthly deduction allocation percentages. If the value in the
fixed account or any subaccount is not enough to pay the interest
so allocated, all of the interest will be taken from all of the
accounts in proportion to their value, minus indebtedness.
Effects of policy loans: If you do not repay your loan, it will
reduce the death benefit and policy value. Even if you do repay
it, your loan can have a permanent effect on death benefits and
policy values, because money borrowed against the subaccounts will
not share in the investment results of the relevant portfolio(s) or
trust(s).
Taxes: If your policy lapses or you surrender it with an
outstanding indebtedness, and the amount of outstanding
indebtedness plus the cash surrender value is more than the sum of
premiums you paid, you will generally be liable for taxes on the
excess. (See "Federal taxes.")
Policy surrenders
You may surrender your policy in full or in part by written or
telephone request. (See chart under "Transfers between the fixed
account and subaccounts.") A surrender request received before
close of business will be processed the same day. A request
received after close of business will be processed the following
business day. We may require that you return your policy.
We will normally process your payment within seven days; however,
we reserve the right to defer payment. (See "Deferral of
payments," under "Payment of policy proceeds.")
Total surrenders: If you surrender your policy totally, you receive
its cash surrender value -- the policy value minus outstanding
indebtedness and applicable surrender charges. (See "Loads, fees
and charges.") We will compute the value of each subaccount as of
the end of the valuation period during which your request is
received.
Partial surrenders: After the first policy year, you may surrender
any amount from $200 up to 85% of the policy's cash surrender
value. (Partial surrenders by telephone are limited to $50,000.)
You will be charged a partial surrender fee, described under
"Loads, fees and charges."
Allocation of partial surrenders: Unless you specify otherwise, IDS
Life of New York will make partial surrenders from the fixed
account and subaccounts in proportion to their values at the end of
the valuation period during which your request is received. In
determining these proportions, we first subtract the amount of any
outstanding indebtedness from the fixed account value.
<PAGE>
PAGE 43
Effects of partial surrenders:
o The policy value will be reduced by the amount of the partial
surrender and fee.
o The death benefit will be reduced by the amount of the partial
surrender and fee, or, if the death benefit is based on the
applicable percentage of policy value, by an amount equal to the
applicable percentage times the amount of the partial surrender.
o A partial surrender may terminate the death benefit guarantee.
The surrender amount is deducted from total premiums paid, which
may reduce the total below the level required to keep the death
benefit guarantee in effect.
o If Option 1 is in effect, the specified amount will be reduced by
the amount of the partial surrender and fee. IDS Life of New York
will deduct this decrease from the current specified amount in this
order:
1. First from the specified amount provided by the most recent
increase;
2. Next from the next most recent increases successively;
3. Then from the initial specified amount when the policy was
issued.
Because they reduce the specified amount, partial surrenders may
affect the cost of insurance. IDS Life of New York will not allow
a partial surrender if it would reduce the specified amount below
the required minimum. (See "Decreases" under "Death benefits".)
o If Option 2 is in effect, a partial surrender does not affect the
specified amount.
Taxes
Upon surrender, you will generally be liable for taxes on any
excess of the cash surrender value plus outstanding indebtedness
over the premium paid. (See "Federal taxes.")
Exchange right
For two years after the policy is issued, you can exchange it for
one that provides benefits that do not vary with the investment
return of the subaccounts. Because the policy itself offers a
fixed return option, all you need to do is transfer all of the
policy value in the subaccounts to the fixed account. We will
automatically credit all future premium payments to the fixed
account unless you request a different allocation.
Such transfer will not count against the five-transfers-per-year
limit. Also, any restrictions on transfers into the fixed account
will be waived.
<PAGE>
PAGE 44
There will be no effect on the policy's death benefit, specified
amount, net amount at risk, rate classification(s) or issue age.
Only the method of funding the policy value will be affected.
Paid-up insurance option
You may request that the cash surrender value of the policy be used
to purchase an amount of paid-up insurance. Your request may be
made in writing during the 30 days before any policy anniversary.
The paid-up insurance policy will take effect as of the policy
anniversary and will mature on the original policy's maturity date.
You will forfeit all rights to make future premium payments and all
riders will terminate.
The amount and cash surrender value of the paid-up insurance will
be based on the cost of insurance rates guaranteed in the policy
and on the fixed account guaranteed interest rate. The paid-up
policy's death benefit amount, minus its cash surrender value,
cannot be greater than your current policy's death benefit, minus
its policy value (both as of the date of the paid-up policy's
purchase). The amount of paid-up insurance will remain level and
will not be less than required by law.
Any cash surrender value that is not used to purchase the paid-up
insurance amount will be paid to you. At any time before the
insured's death, you may surrender the paid-up insurance for its
cash surrender value.
Optional insurance benefits
You may choose to add the following benefits to your policy, in the
form of riders (if certain requirements are met):
Waiver of monthly deduction (WMD) Under WMD, we will waive the
monthly deduction if the insured becomes totally disabled for six
months or longer prior to the attained insurance age 60 policy
anniversary. The waiver will not start until the disability has
continued for at least six months; however, once it starts, monthly
deductions taken from policy values during the six-month waiting
period will be credited back to the policy, using the premium
allocation percentage then in effect. Monthly deductions will then
be waived as long as the insured remains disabled. For any month
in which the monthly deduction is covered by this rider, the
minimum monthly premium needed to keep the death benefit guarantee
in effect will be zero.
During disability the specified amount cannot be increased, the
death benefit option cannot be changed to Option 1 and any benefits
provided by riders cannot be increased.
Accidental death benefit (ADB) ADB provides an additional death
benefit if the insured's death is caused by accidental injury prior
to the insured's attained insurance age 70 policy anniversary.
<PAGE>
PAGE 45
Other insured rider (OIR) OIR provides a level, adjustable death
benefit on the life of each other insured covered. The minimum
face amount that can be issued to each other insured is $25,000.
OIR does not develop policy value.
Coverage under OIR will terminate on the earliest of the following:
o The monthly anniversary date on or next following receipt of a
written request to end coverage.
o The date the basic policy matures, is surrendered or terminates
for any reason other than the insured's death.
o 31 days after the insured's death. No charge is made for
coverage during this period.
o The date of conversion of the coverage to an individual life
insurance policy on the life of the other insured. OIR is
convertible to any level benefit, level premium whole life or
flexible premium adjustable whole life insurance policy offered
by us at the time of conversion.
o The date the other insured attains insurance age 70.
If the other insured's age or sex has been misstated, the amount
payable upon his or her death will be the amount of insurance that
would have been purchased by the cost of the OIR for the policy
month during which death occurred, had the cost been calculated
using rates for the correct age and sex.
Children's insurance rider (CIR) Each unit of CIR provides $1,000
level term insurance on each eligible child. To be eligible,
children must:
o be insurable children, stepchildren or legally adopted children
of the insured;
o be named in the application for this rider;
o be members of the primary insured's household (actually living
with the insured) at the time of application; and
o be at least 15 days old and have not passed their 19th
birthday.
After the CIR is issued, it automatically insures children born to,
legally adopted by, or who become stepchildren of the insured after
the date of the CIR application, if they are at least 15 days old
and have not passed their 19th birthday. The maximum number of
units for one family is 10.
<PAGE>
PAGE 46
Insurance under CIR expires on the earlier of the child's 22nd
birthday or the primary insured's attained insurance age 65 policy
anniversary. If the primary insured parent dies, the insurance on
each child will be changed to paid-up term insurance, which will
provide the same coverage as provided under the CIR and will expire
at the same time coverage under the CIR would have expired.
The coverage provided on each child may be converted, without
evidence of insurability, to level premium whole life or flexible
premium adjustable whole life insurance within 31 days before or
after the earlier of the child's 22nd birthday or the primary
insured's attained insurance age 65 policy anniversary. Up to five
times the amount of insurance on each child may be converted.
Payment of policy proceeds
Proceeds will be paid when:
o you surrender the policy;
o the insured dies; or
o the policy maturity date is reached, which occurs when
the insured reaches attained insurance age 100.
All proceeds will be paid by check. We will compute the amount of
the death benefit and pay it in a single sum unless you select one
of the payment options below. We will pay interest at a rate not
less than 4% per year on single sum death proceeds, from the date
of the insured's death to the settlement date (the date on which
proceeds are paid in a lump sum or first placed under a payment
option).
Payment options:
During the insured's lifetime, you may request in writing that we
pay policy proceeds under one or more of the three payment options
below. (The beneficiary may also select a payment option, unless
you say that he or she can't.) You decide how much of the proceeds
will be placed under each option (minimum: $5,000). Any such
amount will be transferred to IDS Life of New York's general
account. Unless we agree otherwise, payments under all options
must be made to a natural person.
You may also, by written request, change a prior choice of payment
option, or elect a payment option other than the three below if we
agree.
If you elect a payment option for pre-death proceeds, payments
under this option may be subject to federal income tax as ordinary
income. If you elect Option A, the full pre-death proceeds will be
taxed as a full surrender or maturity as described in "Taxation of
policy proceeds" and may also be subject to an additional 10%
penalty tax if the policy is a modified endowment. The interest
paid under Option A will be ordinary income subject to income tax
in the year earned. The interest payments will not be subject to
the 10% penalty tax.
<PAGE>
PAGE 47
If you elect Option B or Option C for payment of pre-death
proceeds, any indebtedness at the time of election will be taxed as
a partial surrender as described in "Taxation of policy proceeds"
and may also be subject to an additional 10% penalty tax if the
policy is a modified endowment. The remainder of the proceeds will
be used to make payments under the option elected. A portion of
each payment will be taxed as ordinary income and a portion of each
payment will be considered a return of the investment in the policy
and will not be taxed. An owner's investment in the policy is
described in "Taxation of policy proceeds." All payments made
after the investment in the policy is fully recovered will be
subject to tax. Amounts paid under Option B or Option C that are
subject to tax may also be subject to an additional 10% penalty
tax. (See "Penalty tax.")
Death benefit proceeds applied to any payment option are not
considered part of the beneficiary's income and thus are not
subject to federal income tax. Payments of interest under Option A
will be ordinary income subject to tax. Under Option B or Option
C, a portion of each payment will be ordinary income, subject to
tax and a portion of each payment will be considered a return of
the beneficiary's investment in the policy. The beneficiary's
investment in the policy is the death benefit proceeds applied to
the payment option. All payments made after the investment in the
policy is fully recovered will be subject to tax.
Option A -- Interest payments: We will pay interest on any proceeds
placed under this option at a rate of 4% per year compounded
annually, at regular intervals and for a period that is agreeable
to both you and us. At the end of any payment interval, you may
withdraw proceeds in amounts of at least $100. At any time, you
may withdraw all of the proceeds that remain or you may place them
under a different payment option approved by us.
Option B -- Payments for a specified period: We will make fixed
monthly payments for any number of years you specify. Here are
examples of monthly payments for each $1,000 placed under this
option:
Payment period Monthly Payment per $1,000
(years) placed under Option B
5 $18.32
10 10.06
15 7.34
20 6.00
25 5.22
30 4.72
Monthly amounts for other payment periods will be furnished at your
request, free of charge.
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PAGE 48
Option C -- Lifetime income: We will make monthly payments for the
life of the person (payee) who is to receive the income. Payment
will be guaranteed for 10, 15 or 20 years.
The amount of each monthly payment per $1,000 placed under this
option will be based on the table of settlement rates in effect at
the time of the first payment. The amount depends on the sex and
adjusted age of the payee on that date. Adjusted age means the age
of the payee (on the payee's nearest birthday) minus an adjustment
as follows:
Calendar year of Adjustment Calendar year of Adjustment
payee's birth payee's birth
Before 1920 0 1945-1949 6
1920-1924 1 1950-1959 7
1925-1929 2 1960-1969 8
1930-1934 3 1970-1979 9
1935-1939 4 1980-1989 10
1940-1944 5 After 1989 11
The amount of each monthly payment per $1,000 placed under this
option will not be less than amounts shown in the next table.
Monthly amounts for any adjusted age not shown will be furnished at
your request, without charge.
Adjusted age of payee Life Income Per $1,000 with payments
guaranteed for:
Adjusted
age Life income per $1,000 with
payee payments guaranteed for
10 years 15 years 20 years
Male Female Male Female Male Female
50 $4.81 $4.47 $4.74 $4.45 $4.65 $4.40
55 5.20 4.80 5.09 4.74 4.94 4.67
60 5.70 5.22 5.51 5.12 5.25 4.98
65 6.35 5.77 5.98 5.58 5.54 5.32
70 7.14 6.50 6.47 6.12 5.77 5.63
75 8.00 7.40 6.87 6.64 5.91 5.85
Deferral of payments:
We reserve the right to defer payments of cash surrender value,
policy loans or variable death benefits in excess of the specified
amount if:
<PAGE>
PAGE 49
o the payments derive from a premium payment made by a check that
has not cleared the banking system (good payment has not been
collected);
o the NYSE is closed (other than customary weekend and holiday
closings);
o in accordance with SEC rules, trading on the NYSE is restricted
or, because of an emergency, it is not practical to dispose of
securities held in the subaccount or determine the value of the
subaccount's net assets.
Any loans or surrenders from the fixed account may be delayed up to
six months from the date we receive the request. If we postpone
the payment of surrender proceeds more than 10 days, we will be pay
you interest on the amount surrendered at an annual rate of 4% for
the period of postponement.
Federal taxes
The following is a general discussion of the policy's federal
income tax implications. It is not intended as tax advice.
Because the effect of taxes on the value and benefits of your
policy depends on your individual situation as well as IDS Life of
New York's tax status, YOU SHOULD CONSULT A TAX ADVISOR TO FIND OUT
HOW THESE GENERAL CONSIDERATIONS APPLY TO YOU. The discussion is
based on our understanding of federal income tax laws as currently
interpreted by the Internal Revenue Service (IRS); both the laws
and their interpretation may change.
The policy is intended to qualify as a life insurance policy for
federal income tax purposes. To that end, the provisions of the
policy are to be interpreted to ensure or maintain this tax
qualification. IDS Life of New York reserves the right to change
the policy in order to ensure that it will continue to qualify as
life insurance for tax purposes. We will send you a copy of any
changes.
IDS Life of New York's tax status
IDS Life of New York is taxed as a life insurance company under the
Code. For federal income tax purposes, the subaccounts are
considered a part of IDS Life of New York, although their
operations are treated separately in accounting and financial
statements. Investment income from the subaccounts is reinvested
and becomes part of the subaccounts' value. This investment
income, including realized capital gains, is not taxed to IDS Life
of New York and therefore no charge is made against the subaccounts
for our federal income taxes. IDS Life of New York reserves the
right to make such a charge in the future if there is a change in
the tax treatment of variable life insurance contracts or in IDS
Life of New York's tax status as we currently understand it.
<PAGE>
PAGE 50
Taxation of policy proceeds
The death benefit is not considered part of the beneficiary's
income and thus is not subject to federal income taxes.
Part or all of any pre-death proceeds received through full
surrender or maturity, lapse, partial surrender, policy loan or
assignment of policy value, or payment options may be subject to
federal income tax as ordinary income. (See the following table.)
In some cases, the tax liability depends on whether the policy is a
modified endowment (explained following the table). The taxable
amount may also be subject to an additional 10% penalty tax if the
policy is a modified endowment.
Source of proceeds Taxable portion of pre-death proceeds
Full surrender/maturity: Amount received plus any
indebtedness, minus your investment
in the policy.*
Lapse: Any outstanding indebtedness minus
your investment in the policy.*
Partial surrenders Lesser of:
(modified endowments): the amount received or policy value
minus your investment in the policy.*
Policy loans and Lesser of:
assignments the amount of the loan/assignment or
(modified endowments): policy value minus your investment in
the policy.*
Partial surrenders Generally, if the amount received is
(other policies): greater than your investment in the
policy*, the amount in excess of your
investment is taxable. However,
during the first 15 policy years, a
different amount may be taxable if
the partial surrender results in or
is necessitated by a reduction in
benefits.
Policy loans and None
assignments
(other policies):
Payment options: If proceeds of the policy will be
paid under one of the payment
options, see the "Payment option"
section for tax information.
* The owner's investment is equal to premiums paid, minus the
nontaxable portion of any previous partial surrenders, plus the
taxable portion of any previous policy loans.
<PAGE>
PAGE 51
Modified endowment contracts
In 1988, Congress created a new class of life insurance policies
called "Modified Endowment Contracts," which are taxed differently
from conventional life insurance contracts. Policies applied for,
or materially changed, on or after June 21, 1988, are considered to
be modified endowments if premiums paid in the first seven years of
the policy, or the first seven years following a material change,
exceed certain limits. (Also, any life insurance policy received in
exchange for a modified endowment is itself a modified endowment.)
We have established procedures for monitoring whether a contract
may become a modified endowment contract.
Modified endowment limits are calculated when the policy is issued
and are based on the benefits provided and on the risk
classification of the insured. They are later recalculated if
certain increases or reductions in benefits occur.
Increases in benefits: Limits are recalculated when an increase is
considered a "material change," as are most increases requested by
the owner, such as an increase in specified amount, addition of a
rider benefit or an increase in an existing rider benefit.
(Automatic increases under the terms of the policy, such as an
increase in death benefit due to operation of the applicable
percentage table described in the "Death benefits" section or to
policy value growth under Option 2, are generally not considered
material changes.) A policy becomes a modified endowment if
premiums paid in the early years following a material change exceed
the recalculated limits.
Reductions in benefits: When benefits are reduced within seven
years after issue or after the most recent material change, the
limits are recalculated as if the reduced level of benefits had
always been in effect. In most cases, this recalculation will
further restrict the amount of premium that can be paid without
exceeding modified endowment limits. If premiums already paid
exceed the recalculated limits, the policy becomes a modified
endowment even if no further premiums are paid.
Distributions affected: Modified endowment rules apply to
distributions in the year the policy becomes a modified endowment
and in all subsequent years. In addition, the rules apply to
distributions taken two years before the policy becomes a modified
endowment, which are presumed to be taken in anticipation of that
event.
Serial purchase of modified endowments: All modified endowments
issued by the same insurer (or affiliated companies of the insurer)
to the same owner during any calendar year are treated as one
policy in determining the amount of any loan or distribution that
is taxable.
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PAGE 52
Penalty tax: If a policy is a modified endowment, the taxable
portion of pre-death proceeds from a full surrender, maturity,
lapse, partial surrender, policy loan or assignment of policy
value, or certain payment options may be subject to a 10% penalty
tax unless:
o the distribution occurs after the owner attains age
59-1/2;
o the distribution is attributable to the owner becoming
disabled (within the meaning of Code Section 72(m)(7); or
o the distribution is part of a series of substantially
equal periodic payments made at least once a year over
the life (or life expectancy) of the owner or over the
joint lives (or life expectancies) of the owner and the
owner's beneficiary.
Other tax considerations
Interest paid on policy loans: If the loan is used for personal
purposes, such interest is not tax-deductible. Other rules apply
if the loan is used for trade or business or investment purposes,
or if the policy is owned by a business or a corporation.
Policy changes: Changing ownership, exchanging or assigning the
policy may have tax consequences, depending on the circumstances.
Other taxes: Federal estate tax, state and local estate tax,
inheritance tax, gift tax and other tax consequences of ownership
or receipt of policy proceeds will also depend on the
circumstances.
Qualified retirement plans: The policy may be used in conjunction
with certain qualified plans. Since the rules governing such use
are complex, a purchaser should consult a competent pension
consultant.
On July 6, 1983, the Supreme Court held in Arizona Governing
Committee v. Norris that optional annuity benefits provided under
an employee's deferred compensation plan could not, under Title VII
of the Civil Rights Act of 1964, vary between men and women on the
basis of sex. Since the policy's cost of insurance rates and
purchase rates for certain settlement options distinguish between
men and women, employers and employee organizations should consult
with legal counsel before purchasing the policy for any
employment-related insurance or benefit program.
IDS Life of New York
IDS Life of New York is a stock life insurance company organized
under the laws of the State of New York in 1972. Our address is 20
Madison Ave. Extension, Albany, NY 12203.
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PAGE 53
IDS Life of New York is licensed in New York and North Dakota, and
it conducts a conventional life insurance business in the state of
New York. All annuity contracts and insurance policies issued by
IDS Life of New York, including the policy described in this
prospectus, are non-participating.
Ownership
IDS Life of New York, a New York corporation, is a wholly owned
subsidiary of IDS Life, a Minnesota corporation, which is a wholly
owned subsidiary of American Express Financial Corporation (AEFC);
AEFC, a Delaware corporation, is a wholly owned subsidiary of
American Express Company.
State regulation
IDS Life of New York is subject to the laws of New York governing
insurance companies and to regulation by the New York Department of
Insurance. An annual statement in a prescribed form is filed with
New York's Department of Insurance. IDS Life of New York's books
and accounts are subject to review by the New York Department of
Insurance at all times and a full examination of its operations is
conducted periodically. Such regulation does not, however, involve
any supervision of management or investment practices or policies.
Distribution of the policy
American Express Financial Advisors Inc., a registered
broker/dealer and an affiliate of IDS Life of New York, is the sole
distributor of the policy. IDS Life of New York pays its
representatives a commission of up to 47.5% of the initial minimum
monthly premium (annualized) when the policy is sold, plus 3% of
all premiums in excess of 12 times the minimum monthly premium.
Additional commissions are paid if an increase in coverage occurs.
IDS Life of New York also pays approximately 27% of the total
representative's commission to the field vice presidents and
district sales managers of the selling representative.
Legal proceedings
As an insurance company, IDS Life of New York is involved in a
number of items of litigation. We believe that these items are not
material and we do not expect to incur significant losses resulting
from the litigation.
Experts
The financial statements of IDS Life of New York at Dec. 31, 1995
and 1994, and for each of the three years in the period ended Dec.
31, 1995, and of the segregated asset subaccounts of IDS Life of
New York Account 8 for Flexible Premium Variable Life Insurance, as
of Dec. 31, 1995, and for each of the three years in the period <PAGE>
PAGE 54
then ended, except for the YIT subaccount which is for the period
Oct. 28, 1994 (commencement of operations) to Dec. 31, 1995 and the
Y95 subaccount which is for the period Jan. 1, 1993 to Nov. 15,
1995 (date of maturity of securities in the trust) appearing in
this prospectus have been audited by Ernst & Young LLP, independent
auditors, as set forth in their reports thereon appearing elsewhere
herein, and are included in reliance upon such reports given upon
the authority of such firm as experts in accounting and auditing.
Actuarial matters included in the prospectus have been examined by
Tracy A. Anderson, Treasurer and Chief Actuary, as stated in his
opinion filed as an exhibit to the Registration Statement.
Management of IDS Life of New York
Directors
John C. Boeder
Vice president, Mature Market Group, AEFC, since March 1994;
president and chief operating officer, IDS Life of New York, from
1991 to 1994; vice president and chief operating officer, IDS Life
of New York, from 1989 to 1991.
Roger C. Corea
Group vice president, Upstate New York, AEFA, since January 1995;
vice president, Northeast Region, AEFA, from May 1987 to December
1994.
Charles A. Cuccinello
Retired since 1982; former senior vice president, American Express
Company.
Milton R. Fenster
President, Milton Fenster Associates.
Robert A. Hatton
Vice president and chief operating officer, IDS Life of New York
since June 1994; special assignment/Project leader, AEFA, December
1992 to June 1994; manager/Analyst operations, AEFA, August 1989 to
December 1992.
Richard W. Kling
President and chairman of the board, IDS Life of New York, since
April 1994; director, IDS Life, since February 1984; President, IDS
Life, since March 1994; executive vice president, Marketing and
Products, IDS Life, from January 1988 to March 1994; senior vice
president, Risk Management Products, AEFC, since May 1994; vice
president, AEFC, from January 1988 to May 1994; director and
president of IDS Life Series Fund, Inc.; chairman of the board of
managers and president of IDS Life Variable Annuity Funds A and B.
<PAGE>
PAGE 55
Edward Landes
Retired, former Development Consultants; director, IDS Life Series
Fund Inc. since September 1985; member of the board of Managers of
IDS Life Variable Annuity Funds A and B since October 1988.
Director of IDS Life Insurance Company of New York; vice President
of Financial YMCA Development, YMCA, since 1985.
Michael P. Monaco
Executive vice president and chief financial officer, American
Express, since September 1990; senior vice president and
comptroller, American Express, from 1989 to 1990.
Stephen P. Norman
Secretary, American Express, since 1982.
Louise M. Parent
Executive vice president and general counsel, American Express,
since 1993; legal counsel, American Express, from 1992 to 1993;
general counsel, First Data Corporation, from 1989 to 1992.
Carl N. Platou
Retired since 1990; member of the board of directors, St. Thomas
University, since 1990; chief financial officer, Fairview Hospital,
from 1953 to 1990.
Gordon H. Ritz
President, Con Rad Broadcasting Corporation (Minneapolis), since
1975.
Michael R. Woodward
Senior vice president, Field Management, AEFC, since June 1991;
region vice president, Atlantic Region, AEFC, from 1988 to June
1991.
Principal officers other than directors
Mario Alaia
Claims officer and assistant secretary since 1988.
Tracy A. Anderson
Treasurer and chief actuary since 1993; senior staff actuary,
Insurance Product Development, AEFC, from 1991 to 1993; staff
actuary, Corporate Actuarial, AEFC, from 1988 to 1991.
Darrell C. Beckstrom
Underwriting officer since 1994; underwriting technical manager,
IDS Life, since 1990; senior underwriter, IDS Life, from 1987 to
1992.
Donna Gaglione
Secretary since 1995; manager of Administrative Services since
1992; treasurer from 1985 to 1992.
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PAGE 56
Margaret M. Grogan, M.D.
Medical director since 1986.
Lorraine R. Hart
Investment officer since March 1992; vice president, Insurance
Investments, IDS Life, since October 1989.
Janis E. Miller
Executive vice president, Variable Assets, since March 1994; vice
president, AEFC, since June 1990; director, Mutual Fund Product
Development and Marketing, AEFC, from May 1987 to May 1990;
director, IDS Life Series Fund, Inc.; member of the board of
managers, IDS Life Variable Annuity Funds A and B.
F. Dale Simmons
Vice president and assistant treasurer since 1994; vice president
and senior portfolio manager, Insurance Investments, AEFC, since
1990.
William A. Stoltzmann
Counsel and assistant secretary since March 1990.
Dennis W. West
Assistant underwriting officer; underwriting technical manager, IDS
Life, since 1992; senior underwriter, IDS Life, from 1987 to 1992.
The officers, employees and sales force of IDS Life of New York are
bonded, in the amount of $100 million, by virtue of a blanket
fidelity bond issued to American Express Company by Saint Paul Fire
and Marine, the leading underwriter.
Smith Barney Inc.
Smith Barney, sponsor of the trust, a Delaware corporation and a
subsidiary of The Travelers Inc., is engaged in the underwriting,
securities and commodities brokerage business, and is a member of
the NYSE, other major securities exchanges and commodity exchanges
and the National Association of Securities Dealers, Inc. In July
1993, Primerica Corporation and its subsidiary, Smith Barney,
Harris Upham & Co. Incorporated, acquired the assets of the
domestic retail brokerage and asset management businesses of
Shearson Lehman Brothers Inc., previously the sponsor of the
trusts. In January 1994, Primerica Corporation completed a merger
with The Travelers Corporation and they became The Travelers Inc.
The sponsor sponsors seven open-end investment companies and three
closed-end investment companies as well as a variety of unit
investment trusts. The sponsor has acted as principal underwriter
and managing underwriter of other investment companies. The
sponsor, in addition to participating as a member of various
selling groups or as an agent of other investment companies,
executes orders on behalf of investment companies for the purchase
and sale of securities of such companies and sells securities to
such companies in its capacity as a broker or dealer in securities.
<PAGE>
PAGE 57
Other information
A registration statement has been filed with the Securities and
Exchange Commission (SEC) under the Securities Act of 1933, as
amended. For further information concerning the policy, its
separate account (the variable account) and IDS Life of New York,
please refer to the registration statement, as amended, with
exhibits.
Substitution of investments
If shares of any fund portfolio or trust units are unavailable for
purchase by the appropriate subaccount or if, in the judgment of
IDS Life of New York's management, further investment in such
shares is no longer appropriate, shares of another registered,
open-end management investment company or unit investment trust may
be substituted.
If deemed by IDS Life of New York to be in the best interest of
persons having voting rights under the policy, the variable account
may be operated as a management company under the Investment
Company Act of 1940, or it may be deregistered under the Act if
such registration is no longer required.
In the event of any such substitution or change, IDS Life of New
York may, without the consent or approval of owners, amend the
policy and take whatever action is necessary and appropriate.
However, no such substitution or change will be made without any
necessary approval of the SEC or state insurance departments. IDS
Life of New York will notify owners within five days of any
substitution or change.
Voting rights
All shares issued by the fund are the same class (kind) -- capital
stock. They are fully paid and nonassessable and can be redeemed
or transferred. They can be issued as full shares or fractions.
All shares have equal voting rights; a fraction of a share has the
same kind of rights and privileges as a full share.
Each of the fund's six portfolios issues its own series of common
stock. The shares of each portfolio represent an interest only in
that portfolio's assets (and profits or losses) and in the event of
liquidation, each share of a portfolio would have the same rights
to dividends and assets as every other share of that portfolio.
Each share of a portfolio has one vote. On some issues, such as
election of directors, all shares of the fund vote together as one
series. When electing directors, all shares have cumulative voting
rights. Cumulative voting means that shareholders are entitled to
a number of votes equal to the number of shares they hold
multiplied by the number of directors to be elected, and they have
the right to divide votes among candidates.
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PAGE 58
On an issue affecting only one portfolio -- for example, a
fundamental investment restriction pertaining only to that
portfolio -- its shares vote as a separate series. If shareholders
of a particular portfolio vote approval of the Investment
Management and Services Agreement, the agreement becomes effective
with respect to that portfolio, whether or not it is approved by
shareholders of the other portfolios.
IDS Life of New York is the owner of all fund shares and as such
holds all voting rights. However, IDS Life of New York will vote
the shares of each portfolio in accordance with instructions
received from owners. If we do not receive timely instructions
from you, we will vote your shares in the same proportion as the
shares for which instructions are received. Fund shares that are
not otherwise attributable to owners will also be voted by IDS Life
of New York in the same proportion as those shares in that
subaccount for which instructions are received.
We determine the number of fund shares in each subaccount for which
you may give instructions by applying your percentage interest in
the subaccount to the total number of votes attributable to the
subaccount. The number will be determined as of a date chosen by
IDS Life of New York, but not more than 60 days before the meeting
of the fund.
Fractional votes are counted. You will receive notice of each
shareholder meeting, together with any proxy solicitation materials
and a statement of the number of votes for which you are entitled
to give instructions.
If required by state insurance officials, IDS Life of New York may
disregard voting instructions that would change the goals of one or
more of the fund's portfolios or would result in approval or
disapproval of an investment advisory contract. In addition, IDS
Life of New York itself may disregard voting instructions that
would require changes in the investment policy or investment
advisor of one or more of the fund's portfolios, if IDS Life of New
York reasonably disapproves such changes in accordance with
applicable federal regulations. If IDS Life of New York does
disregard voting instructions, it will, in its next report to
owners, advise them of that action and the reasons for it.
Generally, ownership of units of a unit investment trust does not
involve the exercise of voting rights. However, unit holders in
the trust may vote for removal of the trustee or for amendment or
termination of the trust indenture. In the event of such a vote,
IDS Life of New York, as the owner of the units, would solicit
voting instructions from owners under the same procedures used for
votes affecting the fund.
<PAGE>
PAGE 59
Reports
At least once a year IDS Life of New York will mail to you, at your
last known address of record, a report containing all information
required by law or regulation, including a statement showing the
current policy value.
Policy illustrations
The following tables illustrate how policy values, cash surrender
values and death benefits may change with the investment experience
of the subaccount. The tables show how these amounts might vary,
for a 35-year-old male nonsmoker, under Death Benefit Option 1, if:
o the annual rate of return of the fund is 0%, 6% or 12%.
o cost of insurance rates and policy fees are -- current rates
and fees for policies purchased on or after May 1, 1993 --
current rates and fees for policies purchased before May 1,
1993 -- guaranteed rates and fees.
Any such illustration involves a number of detailed assumptions,
(See chart, "Understanding the illustrations.") To the extent that
your own circumstances differ from those assumed in the
illustrations, your expected results would also differ.
Upon request, you will be furnished with comparable tables
illustrating death benefits, policy values and cash surrender
values based on the actual age of the person you propose to insure
and on an initial specified amount and premium payment schedule.
In addition, after you have purchased a policy, you may request
illustrations based on policy values at the time of request.
Understanding the illustrations:
Rates of return: assumed to be uniform, gross, after-tax, annual
rates of 0%, 6% or 12% for the fund. Results would differ
depending on allocations among the subaccounts, if returns averaged
0%, 6% and 12% for the fund as a whole but differed across
portfolios.
Insured: assumed to be a male insurance age 35, in a standard rate
classification, qualifying for the nonsmoker rate. Results would
be lower if the insured were in a substandard rate classification
or did not qualify for the non-smoker rate.
Premiums: A $900 premium is assumed to be paid in full at the
beginning of each policy year. Results would differ if premiums
were paid on a different schedule.
Policy loans and partial withdrawals: It is assumed that none have
been made. (Since indebtedness is assumed to be zero, the cash
surrender value in all cases equals the policy value minus the
surrender charge.)
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PAGE 60
Effect of expenses and charges: The net investment return of the
subaccounts, shown in the tables, is lower than the gross,
after-tax return of the fund because expenses paid by the fund and
charges made against the subaccounts have been deducted. These
include:
o the daily investment management fee paid by the fund, assumed to
be equivalent to an annual rate of 0.6% of the fund's aggregate
average daily net assets;
o the daily mortality and expense risk charge, equivalent to 0.9%
of the daily net asset value of the subaccounts annually; and
o a nonadvisory expense charge of 0.1% of each portfolio's
aggregate average daily net assets for direct expenses incurred
by the fund.
The nonadvisory expense charge is capped by IDS Life at 0.1%, even
though actual expenses on the Government Securities and Money
Market Portfolios ranged up to 0.2%. Although IDS Life reserves
the right to discontinue capping these expenses, IDS Life's present
intent is to continue the cap indefinitely until actual expenses
are less than the cap. Should IDS Life discontinue the cap prior
to that time, the policy values and death benefits in the tables
generally would be less.
After deduction of the above expenses and charges, the illustrated
gross annual investment rates of return of 0%, 6% and 12%
correspond to approximate net annual rates of - 1.59%, 4.32% and
10.22%, respectively.
Taxes: Results shown in the tables reflect the fact that IDS Life
of New York does not currently charge the subaccount for federal
income tax. If such a charge is taken in the future, the
portfolios will have to earn more than they do now in order to
produce the death benefits and policy values illustrated.
<PAGE>
PAGE 61
<TABLE>
<CAPTION>
Illustration Policies purchased on or after May 1, 1993
_____________________________________________________________________________________________________________________________
Initial specified amount $100,000 Male age 35 Current costs assumed
Death benefit Option 1 nonsmoker annual premium $900
_____________________________________________________________________________________________________________________________
Premium Death benefit (1)(2) Policy value (1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 945 $100,000 $100,000 $100,000 $ 619 $ 662 $ 706 $ 0 $ 15 $ 59
2 1,937 100,000 100,000 100,000 1,228 1,355 1,486 505 631 762
3 2,979 100,000 100,000 100,000 1,818 2,066 2,335 1,036 1,283 1,552
4 4,073 100,000 100,000 100,000 2,388 2,797 3,259 1,547 1,956 2,419
5 5,222 100,000 100,000 100,000 2,938 3,550 4,269 2,039 2,650 3,369
6 6,428 100,000 100,000 100,000 3,469 4,325 5,371 2,748 3,604 4,650
7 7,694 100,000 100,000 100,000 3,982 5,124 6,578 3,441 4,583 6,037
8 9,024 100,000 100,000 100,000 4,473 5,944 7,896 4,112 5,584 7,535
9 10,420 100,000 100,000 100,000 4,941 6,785 9,335 4,761 6,605 9,154
10 11,886 100,000 100,000 100,000 5,383 7,645 10,905 5,383 7,645 10,905
11 13,425 100,000 100,000 100,000 5,800 8,525 12,622 5,800 8,525 12,622
12 15,042 100,000 100,000 100,000 6,191 9,426 14,501 6,191 9,426 14,501
13 16,739 100,000 100,000 100,000 6,556 10,347 16,557 6,556 10,347 16,557
14 18,521 100,000 100,000 100,000 6,892 11,287 18,808 6,892 11,287 18,808
15 20,392 100,000 100,000 100,000 7,196 12,245 21,274 7,196 12,245 21,274
16 22,356 100,000 100,000 100,000 7,466 13,218 23,976 7,466 13,218 23,976
17 24,419 100,000 100,000 100,000 7,701 14,207 26,939 7,701 14,207 26,939
18 26,585 100,000 100,000 100,000 7,894 15,206 30,189 7,894 15,206 30,189
19 28,859 100,000 100,000 100,000 8,042 16,213 33,756 8,042 16,213 33,756
20 31,247 100,000 100,000 100,000 8,140 17,224 37,673 8,140 17,224 37,673
age 60 45,102 100,000 100,000 100,000 7,701 22,203 64,100 7,701 22,203 64,100
age 65 62,785 100,000 100,000 131,385 5,149 26,638 107,693 5,149 26,638 107,693
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $900 premium is paid at the beginning of each policy year. Values will be different if premiums are paid in
different amounts or with a different frequency.
The above hypothetical investment results are illustrative only and should not be deemed a representation of past or future
investment results. Actual investment results may be more or less than those shown. The death benefit, policy value and cash
surrender value would be different from those shown if returns averaged 0%, 6% and 12% over a period of years, but fluctuated above
and below those averages for individual policy years. No representation can be made that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
/TABLE
<PAGE>
PAGE 62
<TABLE>
<CAPTION>
Illustration Policies purchased before May 1, 1993
_____________________________________________________________________________________________________________________________
Initial specified amount $100,000 Male age 35 Current costs assumed
Death benefit Option 1 nonsmoker annual premium $900
_____________________________________________________________________________________________________________________________
Premium Death benefit (1)(2) Policy value (1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 945 $100,000 $100,000 $100,000 $ 619 $ 662 $ 706 $ 0 $ 15 $ 59
2 1,937 100,000 100,000 100,000 1,228 1,355 1,486 505 631 762
3 2,979 100,000 100,000 100,000 1,818 2,066 2,335 1,036 1,283 1,552
4 4,073 100,000 100,000 100,000 2,388 2,797 3,259 1,547 1,956 2,419
5 5,222 100,000 100,000 100,000 2,938 3,550 4,269 2,039 2,650 3,369
6 6,428 100,000 100,000 100,000 3,458 4,313 5,359 2,737 3,592 4,639
7 7,694 100,000 100,000 100,000 3,959 5,100 6,553 3,418 4,559 6,012
8 9,024 100,000 100,000 100,000 4,431 5,899 7,848 4,070 5,539 7,487
9 10,420 100,000 100,000 100,000 4,885 6,724 9,267 4,705 6,544 9,087
10 11,886 100,000 100,000 100,000 5,311 7,564 10,814 5,311 7,564 10,814
11 13,425 100,000 100,000 100,000 5,709 8,420 12,501 5,709 8,420 12,501
12 15,042 100,000 100,000 100,000 6,080 9,294 14,346 6,080 9,294 14,346
13 16,739 100,000 100,000 100,000 6,413 10,177 16,354 6,413 10,177 16,354
14 18,521 100,000 100,000 100,000 6,720 11,078 18,555 6,720 11,078 18,555
15 20,392 100,000 100,000 100,000 6,990 11,991 20,960 6,990 11,991 20,960
16 22,356 100,000 100,000 100,000 7,224 12,915 23,595 7,224 12,915 23,595
17 24,419 100,000 100,000 100,000 7,412 13,841 26,474 7,412 13,841 26,474
18 26,585 100,000 100,000 100,000 7,554 14,771 29,629 7,554 14,771 29,629
19 28,859 100,000 100,000 100,000 7,640 15,694 33,083 7,640 15,694 33,083
20 31,247 100,000 100,000 100,000 7,660 16,602 36,866 7,660 16,602 36,866
age 60 45,102 100,000 100,000 100,000 6,899 21,058 62,478 6,899 21,058 62,478
age 65 62,785 100,000 100,000 127,805 3,593 24,413 104,761 3,593 24,413 104,761
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $900 premium is paid at the beginning of each policy year. Values will be different if premiums are paid in
different amounts or with a different frequency.
The above hypothetical investment results are illustrative only and should not be deemed a representation of past or future
investment results. Actual investment results may be more or less than those shown. The death benefit, policy value and cash
surrender value would be different from those shown if returns averaged 0%, 6% and 12% over a period of years, but fluctuated above
and below those averages for individual policy years. No representation can be made that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
/TABLE
<PAGE>
PAGE 63
<TABLE>
<CAPTION>
Illustration
_____________________________________________________________________________________________________________________________
Initial specified amount $100,000 Male age 35 Guaranteed costs assumed
Death benefit Option 1 nonsmoker annual premium $900
_____________________________________________________________________________________________________________________________
Premium Death benefit (1)(2) Policy value (1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
_____________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 945 $100,000 $100,000 $100,000 $ 619 $ 662 $ 706 $ 0 $ 15 $ 59
2 1,937 100,000 100,000 100,000 1,228 1,355 1,486 505 631 762
3 2,979 100,000 100,000 100,000 1,818 2,066 2,335 1,036 1,283 1,552
4 4,073 100,000 100,000 100,000 2,388 2,797 3,259 1,547 1,956 2,419
5 5,222 100,000 100,000 100,000 2,938 3,550 4,269 2,039 2,650 3,369
6 6,428 100,000 100,000 100,000 3,458 4,313 5,359 2,737 3,592 4,639
7 7,694 100,000 100,000 100,000 3,959 5,100 6,553 3,418 4,559 6,012
8 9,024 100,000 100,000 100,000 4,431 5,899 7,848 4,070 5,539 7,487
9 10,420 100,000 100,000 100,000 4,885 6,724 9,267 4,705 6,544 9,087
10 11,886 100,000 100,000 100,000 5,311 7,564 10,814 5,311 7,564 10,814
11 13,425 100,000 100,000 100,000 5,709 8,420 12,501 5,709 8,420 12,501
12 15,042 100,000 100,000 100,000 6,080 9,294 14,346 6,080 9,294 14,346
13 16,739 100,000 100,000 100,000 6,413 10,177 16,354 6,413 10,177 16,354
14 18,521 100,000 100,000 100,000 6,720 11,078 18,555 6,720 11,078 18,555
15 20,392 100,000 100,000 100,000 6,990 11,991 20,960 6,990 11,991 20,960
16 22,356 100,000 100,000 100,000 7,214 12,904 23,585 7,214 12,904 23,585
17 24,419 100,000 100,000 100,000 7,401 13,830 26,463 7,401 13,830 26,463
18 26,585 100,000 100,000 100,000 7,544 14,759 29,617 7,544 14,759 29,617
19 28,859 100,000 100,000 100,000 7,630 15,682 33,070 7,630 15,682 33,070
20 31,247 100,000 100,000 100,000 7,650 16,589 36,851 7,650 16,589 36,851
age 60 45,102 100,000 100,000 100,000 6,616 20,773 62,264 6,616 20,773 62,264
age 65 62,785 100,000 100,000 127,156 2,758 23,524 104,226 2,758 23,524 104,226
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $900 premium is paid at the beginning of each policy year. Values will be different if premiums are paid in
different amounts or with a different frequency.
The above hypothetical investment results are illustrative only and should not be deemed a representation of past or future
investment results. Actual investment results may be more or less than those shown. The death benefit, policy value and cash
surrender value would be different from those shown if returns averaged 0%, 6% and 12% over a period of years, but fluctuated above
and below those averages for individual policy years. No representation can be made that these hypothetical rates of return can be
achieved for any one year or sustained over any period of time.
/TABLE
<PAGE>
PAGE 64
<TABLE>
<CAPTION>
IDS Life of New York Account 8
Statements of Net Assets
Segregated Asset Subaccounts
Assets YEQ YIN YMM YMA YGS YIT
<S> <C> <C> <C> <C> <C> <C>
Investments in shares of mutual fund portfolios
and units of the trusts, at market value:
IDS Life Series Fund Equity
Portfolio -- 783,227 shares at net
asset value of $25.70 per share
(cost $14,308,749)..............$20,131,022 $ -- $ -- $ -- $ -- $ --
IDS Life Series Fund Income
Portfolio - 317,111 shares at net
asset value of $10.50 per share
(cost $3,125,780)................ -- 3,330,294 -- -- -- --
IDS Life Series Fund Money Market
Portfolio -- 664,430 shares at net
asset value of $1.00 per share
(cost $664,374).................. -- -- 664,371 -- -- --
IDS Life Series Fund Managed
Portfolio -- 1,105,863 shares at net
asset value of $16.10 per share
(cost $15,821,301)............... -- -- -- 17,806,128 -- --
IDS Life Series Fund Government
Securities Portfolio -- 55,313
shares at net asset value of
$10.57 per share (cost $561,101).. -- -- -- -- 584,810 --
IDS Life Series Fund International
Equity Portfolio -- 76,543 shares at
net asset value of $13.46 per share
(cost $853,080).................. -- -- -- -- -- 1,030,567
Smith Barney Inc. Stripped
("Zero Coupon") U.S. Treasury
Securities Fund, Series A 2004
Trust -- 1,269,524 units at net
asset value of $0.61 per unit
(cost $529,927).................. -- -- -- -- -- --
20,131,022 3,330,294 664,371 17,806,128 584,810 1,030,567
Dividends receivable............. -- 17,177 2,405 -- 2,648 --
Accounts receivable from IDS Life
of New York for contract purchase
payments......................... 14,253 4,323 26,888 6,057 190 --
Receivable from mutual fund
portfolios for share redemptions. -- -- -- -- -- 1,758
Total assets.....................20,145,275 3,351,794 693,664 17,812,185 587,648 1,032,325
Liabilities
Payable to IDS Life of New York for:
Mortality and expense risk fee... 28,864 2,360 345 25,679 418 1,378
Transaction charge............... -- -- -- -- -- --
Contract termination............. -- -- -- -- -- 1,758
Payable to mutual fund portfolios
and the trust for investments
purchased........................ 14,253 19,140 180,738 6,057 2,420 --
Total liabilities................ 43,117 21,500 181,083 31,736 2,838 3,136
Net assets applicable to Variable
Life contracts in accumulation
period..........................$20,102,158 $3,330,294 $512,581 $17,780,449 $ 584,810 $1,029,189
Accumulation units outstanding.. 7,545,186 1,614,264 351,572 6,737,143 300,900 759,139
Net asset value per accumulation
unit............................$ 2.66 $ 2.06 $ 1.46 $ 2.64 $ 1.94 $ 1.36
See accompanying notes to financial statements.
<PAGE>
PAGE 65
IDS Life of New York Account 8
Statements of Net Assets Dec. 31,1995
Combined
Segregated Asset Subaccounts Variable
Assets Y04 Account
Investments in shares of mutual fund portfolios
and units of the trusts, at market value:
IDS Life Series Fund Equity
Portfolio -- 783,227 shares at net
asset value of $25.71 per share
(cost $14,308,749).............. $ -- $20,131,022
IDS Life Series Fund Income
Portfolio - 317,111 shares at net
asset value of $10.50 per share
(cost $3,125,780)................ -- 3,330,294
IDS Life Series Fund Money Market
Portfolio -- 664,430 shares at net
asset value of $1.00 per share
(cost $664,374).................. -- 664,371
IDS Life Series Fund Managed
Portfolio -- 1,105,863 shares at net
asset value of $16.10 per share
(cost $15,821,301)............... -- 17,806,128
IDS Life Series Fund Government
Securities Portfolio -- 55,313
shares at net asset value of
$10.57 per share (cost $561,101).. -- 584,810
IDS Life Series Fund International
Equity Portfolio -- 76,543 shares at
net asset value of $13.46 per share
(cost $853,080).................. -- 1,030,567
Smith Barney Inc. Stripped
("Zero Coupon") U.S. Treasury
Securities Fund, Series A 2004
Trust -- 1,269,524 units at net
asset value of $0.61 per unit
(cost $529,927).................. 777,759 777,759
777,759 44,324,951
Dividends receivable............. -- 22,230
Accounts receivable from IDS Life
of New York for contract purchase
payments......................... 843 52,554
Receivable from mutual fund
portfolios for share redemptions. -- 1,758
Total assets..................... 778,602 44,401,493
Liabilities
Payable to IDS Life of New York for:
Mortality and expense risk fee... 554 59,598
Transaction charge............... 154 154
Contract termination............. -- 1,758
Payable to mutual fund portfolios
and the trust for investments
purchased........................ 843 223,451
Total liabilities................ 1,551 284,961
Net assets applicable to Variable
Life contracts in accumulation
period.......................... $777,051 $44,116,532
Accumulation units outstanding.. 278,550
Net asset value per accumulation
unit............................ $ 2.79
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 66
<TABLE>
<CAPTION>
IDS Life of New York Account 8
Statements of Operations Year ended Dec. 31,1995
Combined
Segregated Asset Subaccounts Variable
YEQ YIN YMM YMA YGS YIT Y95* Y04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):
Dividend income from mutual
fund portfolios................. $ 365,168 $191,968 $ 18,332 $ 738,863 $32,693 $ 6,898 $ -- $ -- $1,353,922
Expenses:
Mortality and expense risk
fee (Note 3).................... 148,582 25,384 2,588 139,149 4,797 5,471 1,533 5,928 333,432
Transaction charge (Note 6)..... -- -- -- -- -- -- 426 1,647 2,073
Total expenses.................. 148,582 25,384 2,588 139,149 4,797 5,471 1,959 7,575 335,505
Investment income (loss) -- net.. 216,586 166,584 15,744 599,714 27,896 1,427 (1,959) (7,575) 1,018,417
Realized and Unrealized Gain (Loss) on Investments -- net
Net realized gain (loss) on sales
of investments in mutual fund
portfolios and in the trusts:
Proceeds from sales.............. 490,632 272,924 352,853 729,876 80,977 54,522 217,232 61,502 2,260,518
Cost of investments sold......... 388,384 269,516 352,863 706,047 81,252 47,643 148,740 46,239 2,040,684
Net realized gain (loss) on
investments...................... 102,248 3,408 (10) 23,829 (275) 6,879 68,492 15,263 219,834
Net change in unrealized
appreciation or depreciation
of investments................... 4,708,717 341,906 8 2,003,441 54,903 178,601 (57,647) 158,169 7,388,098
Net gain (loss) on investments... 4,810,965 345,314 (2) 2,027,270 54,628 185,480 10,845 173,432 7,607,932
Net increase in net assets
assets resulting from operations.$5,027,551 $511,898 $ 15,742 $2,626,984 $82,524 $186,907 $ 8,886 $165,857 $8,626,349
* For the period Jan. 1, 1995 to Nov. 15, 1995, date of maturity of securities in the 1995 Trust.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 67
<TABLE>
<CAPTION>
IDS Life of New York Account 8
Statements of Operations Year ended Dec. 31,1994
Combined
Segregated Asset Subaccounts Variable
YEQ YIN YMM YMA YGS YIT* Y95 Y04 Account
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss):
Dividend income from mutual
fund portfolios................. $994,621 $ 172,635 $ 10,329 $1,283,650 $ 31,646 $ -- $ -- $ -- $2,492,881
Expenses:
Mortality and expense risk
fee (Note 3).................... 90,695 21,703 2,574 105,352 4,217 113 1,717 4,582 230,953
Transaction charge (Note 6)..... -- -- -- -- -- -- 477 1,273 1,750
Total expenses.................. 90,695 21,703 2,574 105,352 4,217 113 2,194 5,855 232,703
Investment income (loss) -- net.. 903,926 150,932 7,755 1,178,298 27,429 (113) (2,194) (5,855) 2,260,178
Realized and Unrealized Gain (Loss) on Investments -- net
Net realized gain (loss) on sales
of investments in mutual fund
portfolios and in the trusts:
Proceeds from sales.............. 453,989 442,507 272,948 421,489 81,158 848 20,279 63,213 1,753,431
Cost of investments sold......... 396,361 445,254 272,955 396,726 84,081 856 14,109 50,100 1,660,442
Net realized gain (loss) on
investments...................... 57,628 (2,747) (7) 24,763 (2,923) (8) 6,170 13,113 95,989
Net change in unrealized
appreciation or depreciation
of investments...................(661,339) (278,775) (11) (1,215,708) (52,250) (1,114) (2,957) (61,672) (2,273,826)
Net gain (loss) on investments...(603,711) (281,522) (18) (1,190,945) (55,173) (1,122) 3,213 (48,559) (2,177,837)
Net increase (decrease) in net assets
assets resulting from operations.$300,215 $(130,590) $ 7,737 $ (12,647) $(27,744) $(1,235)$ 1,019 $(54,414) $ 82,341
* Commenced operations on Oct. 28, 1994.
See accompanying notes to financial statements.
<PAGE>
PAGE 68
IDS Life of New York Account 8
Statements of Operations Year ended Dec. 31,1993
Combined
Segregated Asset Subaccounts Variable
YEQ YIN YMM YMA YGS Y95 Y04 Account
Investment income (loss):
Dividend income from mutual
fund portfolios.................. $179,593 $122,257 $ 6,029 $ 646,909 $21,234 $ -- $ -- $ 976,022
Expenses:
Mortality and expense risk
fee (Note 3)..................... 57,158 15,668 2,078 63,933 2,978 1,710 4,280 147,805
Transaction charge (Note 6)...... -- -- -- -- -- 475 1,189 1,664
Total expenses................... 57,158 15,668 2,078 63,933 2,978 2,185 5,469 149,469
Investment income (loss) -- net.. 122,435 106,589 3,951 582,976 18,256 (2,185) (5,469) 826,553
Realized and Unrealized Gain (Loss) on Investments -- net
Net realized gain (loss) on sales of investments
in mutual fund portfolios and in the trusts:
Proceeds from sales.............. 151,064 103,611 135,512 332,746 91,137 16,029 77,382 907,481
Cost of investments sold......... 127,390 95,766 135,515 299,826 85,002 10,965 53,670 808,134
Net realized gain (loss) on
investments...................... 23,674 7,845 (3) 32,920 6,135 5,064 23,712 99,347
Net change in unrealized
appreciation or depreciation
of investments................... 737,600 86,604 (1) 671,032 7,055 7,515 62,255 1,572,060
Net gain (loss) on investments... 761,274 94,449 (4) 703,952 13,190 12,579 85,967 1,671,407
Net increase in net assets
resulting from operations........ $883,709 $201,038 $ 3,947 $1,286,928 $31,446 $10,394 $80,498 $2,497,960
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 69
<TABLE>
<CAPTION>
IDS Life of New York Account 8
Statements of Changes in Net Assets Year ended Dec. 31,1995
Combined
Operations Segregated Asset Subaccounts Variable
YEQ YIN YMM YMA YGS YIT Y95* Y04 Accounts
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Investment income (loss) -- net.$ 216,586 $ 166,584 $ 15,744 $ 599,714 $ 27,896 $ 1,427 $ (1,959) $ (7,575) $ 1,018,417
Net realized gain (loss) on
investments...................... 102,248 3,408 (10) 23,829 (275) 6,879 68,492 15,263 219,834
Net change in unrealized
appreciation or depreciation
of investments................... 4,708,717 341,906 8 2,003,441 54,903 178,601 (57,647) 158,169 7,388,098
Net increase in net assets
resulting from operations........ 5,027,551 511,898 15,742 2,626,984 82,524 186,907 8,886 165,857 8,626,349
Contract Transactions
Variable life contract purchase
payments......................... 3,794,832 584,353 81,641 3,321,378 122,755 326,063 12,881 103,254 8,347,157
Net transfers**.................. 1,229,446 157,500 238,223 605,901 (13,926) 465,906 (185,387) 39,181 2,536,844
Transfers for policy loans....... (315,444) (17,868) (10,292) (354,356) (8,919) (19,573) (292) (9,584) (736,328)
Policy charges (Note 3)..........(1,228,453) (220,918) (32,357) (1,200,990) (52,035) (44,302) (8,262) (47,833) (2,835,150)
Contract terminations:
Surrender benefits (Note 7)...... (532,822) (102,633) (21,712) (494,500) (16,005) (13,988) (15,334) (7,463) (1,204,457)
Death benefits................... (42,827) (2,511) (30,660) (146,900) (723) -- -- (771) (224,392)
Increase (decrease) from contract
transactions..................... 2,904,732 397,923 224,843 1,730,533 31,147 714,106 (196,394) 76,784 5,883,674
Net assets at beginning of year..12,169,875 2,420,473 271,996 13,422,932 471,139 128,176 187,508 534,410 29,606,509
Net assets at end of year.......$20,102,158 $3,330,294 $512,581 $17,780,449 $584,810 $1,029,189 $ -- $777,051 $44,116,532
Accumulation Unit Activity
Units outstanding at beginning
of year.......................... 6,264,819 1,408,215 196,238 5,999,602 283,647 130,380 105,071 247,625
Contract purchase payments....... 1,670,681 308,878 57,494 1,406,500 68,039 288,272 7,049 42,187
Net transfers**.................. 534,034 79,609 165,152 256,018 (7,789) 406,561 (99,144) 15,433
Transfers for policy loans....... (139,658) (9,737) (7,381) (149,809) (5,170) (16,732) (159) (3,951)
Policy charges................... (539,694) (117,478) (22,780) (507,431) (28,858) (38,369) (4,506) (19,366)
Contract terminations:
Surrender benefits............... (226,906) (53,959) (15,145) (207,716) (8,585) (10,973) (8,311) (3,088)
Death benefits................... (18,090) (1,264) (22,006) (60,021) (384) -- -- (290)
Units outstanding at end of year. 7,545,186 1,614,264 351,572 6,737,143 300,900 759,139 -- 278,550
* For the period Jan. 1, 1995 to Nov. 15, 1995, date of maturity of securities in the 1995 Trust.
** Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life of New York's fixed account.
See accompanying notes to financial statements.
<PAGE>
PAGE 70
IDS Life of New York Account 8
Statements of Changes in Net Assets Year ended Dec. 31,1994
Combined
Operations Segregated Asset Subaccounts Variable
YEQ YIN YMM YMA YGS YIT* Y95 Y04 Accounts
Investment income (loss) -- net.$ 903,926 $ 150,932 $ 7,755 $ 1,178,298 $ 27,429 $ (113) $ (2,194) $ (5,855) $ 2,260,178
Net realized gain (loss) on
investments...................... 57,628 (2,747) (7) 24,763 (2,923) (8) 6,170 13,113 95,989
Net change in unrealized
appreciation or depreciation
of investments................... (661,339) (278,775) (11) (1,215,708) (52,250) (1,114) (2,957) (61,672) (2,273,826)
Net increase (decrease) in net assets
resulting from operations........ 300,215 (130,590) 7,737 (12,647) (27,744) (1,235) 1,019 (54,414) 82,341
Contract Transactions
Variable life contract purchase
payments......................... 3,533,741 637,406 107,011 3,507,759 128,221 29,594 17,187 150,892 8,111,811
Net transfers**.................. 1,531,741 (10,066) (23,363) 1,885,400 16,391 101,284 (4,906) 7,372 3,503,853
Transfers for policy loans....... (176,254) (114,663) (33,585) (217,212) (3,747) 179 (922) (5,208) (551,412)
Policy charges (Note 3).......... (972,908) (220,640) (34,073) (1,066,791) (51,225) (1,646) (9,292) (45,418) (2,401,993)
Contract terminations:
Surrender benefits (Note 7)...... (387,127) (109,404) (12,156) (315,545) (21,324) -- (6,000) (13,645) (865,201)
Death benefits................... (15,577) (4,196) -- (18,215) -- -- -- (2,118) (40,106)
Increase (decrease) from contract
transactions..................... 3,513,616 178,437 3,834 3,775,396 68,316 129,411 (3,933) 91,875 7,756,952
Net assets at beginning of year.. 8,356,044 2,372,626 260,425 9,660,183 430,567 -- 190,422 496,949 21,767,216
Net assets at end of year.......$12,169,875 $2,420,473 $271,996 $13,422,932 $471,139 $128,176 $187,508 $534,410 $29,606,509
Accumulation Unit Activity
Units outstanding at beginning
of year.......................... 4,382,201 1,308,032 192,997 4,307,613 244,426 -- 107,290 206,552
Contract purchase payments....... 1,895,768 365,346 78,174 1,575,867 75,710 30,154 9,613 68,017
Net transfers**.................. 825,099 (7,881) (16,784) 843,686 8,908 101,713 (2,769) 3,063
Transfers for policy loans....... (94,801) (65,296) (24,382) (97,795) (2,237) 181 (521) (2,274)
Policy charges................... (523,957) (126,801) (24,929) (480,332) (30,400) (1,668) (5,435) (20,635)
Contract terminations:
Surrender benefits............... (210,056) (62,754) (8,838) (140,418) (12,760) -- (3,107) (6,117)
Death benefits................... (9,435) (2,431) -- (9,019) -- -- -- (981)
Units outstanding at end of year. 6,264,819 1,408,215 196,238 5,999,602 283,647 130,380 105,071 247,625
* For the period Oct. 28, 1994 (commencement of operations) to Dec. 31, 1994.
** Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life of New York's fixed account.
See accompanying notes to financial statements.
<PAGE>
PAGE 71
IDS Life of New York Account 8
Statements of Changes in Net Assets Dec. 31, 1993
Combined
Operations Segregated Asset Subaccounts Variable
Assets YEQ YIN YMM YMA YGS Y95 Y04 Account
Investment income (loss) -- net..$ 122,435 $ 106,589 $ 3,951 $ 582,976 $ 18,256 $ (2,185) $ (5,469) $ 826,553
Net realized gain (loss) on
investments...................... 23,674 7,845 (3) 32,920 6,135 5,064 23,712 99,347
Net change in unrealized
appreciation or depreciation
of investments................... 737,600 86,604 (1) 671,032 7,055 7,515 62,255 1,572,060
Net increase in net assets
resulting from operations........ 883,709 201,038 3,947 1,286,928 31,446 10,394 80,498 2,497,960
Contract Transactions
Variable life contract purchase
payments......................... 2,454,005 685,064 121,090 2,414,058 127,892 18,795 102,546 5,923,450
Net transfers*................... 987,806 510,471 (8,660) 1,881,809 63,583 (3,441) (7,615) 3,423,953
Transfers for policy loans....... (117,077) (29,108) (21,855) (123,915) (5,276) (656) (2,758) (300,645)
Policy charges (Note 3).......... (672,787) (159,662) (25,631) (692,969) (38,259) (10,197) (36,523) (1,636,028)
Contract terminations:
Surrender benefits (Note 7)...... (119,218) (17,335) (3,304) (99,116) (1,374) -- (3,038) (243,385)
Death benefits................... (7,407) (4,381) -- (140,710) -- -- (2,290) (154,788)
Increase from contract
transactions..................... 2,525,322 985,049 61,640 3,239,157 146,566 4,501 50,322 7,012,557
Net assets at beginning of year.. 4,947,013 1,186,539 194,838 5,134,098 252,555 175,527 366,129 12,256,699
Net assets at end of year........$8,356,044 $2,372,626 $260,425 $9,660,183 $430,567 $190,422 $496,949 $21,767,216
Accumulation Unit Activity
Units outstanding at beginning
of year...........................2,916,190 744,344 146,947 2,720,382 159,431 104,645 183,225
Contract purchase payments........1,426,607 390,732 90,792 1,187,680 74,372 10,730 44,488
Net transfers*.................... 574,086 293,064 (6,906) 923,273 36,745 (1,871) (1,854)
Transfers for policy loans........ (68,354) (16,397) (16,243) (61,410) (3,051) (381) (1,173)
Policy charges.................... (392,089) (91,427) (19,126) (341,372) (22,269) (5,833) (15,871)
Contract terminations:
Surrender benefits................ (69,952) (9,801) (2,467) (48,749) (802) -- (1,290)
Death benefits.................... (4,287) (2,483) -- (72,191) -- -- (973)
Units outstanding at end of year..4,382,201 1,308,032 192,997 4,307,613 244,426 107,290 206,552
* Includes transfer activity from (to) other subaccounts and transfers from (to) IDS Life of New York's fixed account.
See accompanying notes to financial statements.
</TABLE>
<PAGE>
PAGE 72
IDS Life of New York Account 8
Notes to Financial Statement
___________________________________________________________________
1. Organization
IDS Life of New York Account 8 (the Variable Account) was
established on Sept. 12, 1985 as a segregated asset account of IDS
Life Insurance Company of New York (IDS Life of New York) under New
York law and is registered as a single unit investment trust under
the Investment Company Act of 1940. Operations of the Variable
Account commenced on Aug. 31, 1987.
The Variable Account is comprised of seven subaccounts. Prior to
Nov. 15, 1995, the date of maturity of securities in the 1995
Trust, the Variable Account was comprised of eight subaccounts. The
assets of each subaccount of the Variable Account are not
chargeable with liabilities arising out of the business conducted
by any other Subaccount, Account or by IDS Life of New York. The
assets of the Variable Account shall be available, however, to
cover the liabilities of IDS Life of New York to the extent the
assets of the Variable Account exceed its liabilities arising under
the policies supported by it. Variable Universal Life policy
owners allocate their premium payment to one or more of the seven
subaccounts. Such funds are then invested in shares of six
portfolios of IDS Life Series Fund, Inc. (the mutual fund) or in
units of one Trust of Smith Barney Inc., Stripped ("Zero Coupon")
U.S. Treasury Securities Fund, Series A (individually, a Trust or
collectively, the Trusts). The 1995 Trust matured on Nov. 15, 1995
and is no longer available for investment.
The mutual fund, which commenced operations Jan. 20, 1986, is
registered under the Investment Company Act of 1940 as a
diversified, open-end management investment company. Funds
allocated to Equity Subaccount (YEQ) are invested in the shares of
the Equity Portfolio; Income Subaccount (YIN) invests in the shares
of the Income Portfolio; Money Market Subaccount (YMM) invests in
the shares of the Money Market Portfolio; Managed Subaccount (YMA)
invests in the shares of the Managed Portfolio; Government
Securities Subaccount (YGS) invests in the shares of the Government
Securities Portfolio; and, International Equity Subaccount (YIT)
invests in shares of the International Equity Portfolio. The
Trusts, which commenced operations Aug. 4, 1986, are registered
under the Investment Company Act of 1940 as a unit investment
trust. Funds allocated to 1995 U.S. Treasury Securities Subaccount
(Y95) were invested in units of the 1995 Trust and the 2004 U.S.
Treasury Securities Subaccount (Y04) invests in units of the 2004
Trust.
IDS Life, parent company of IDS Life of New York, serves as
manager, investment adviser and distributor for the Variable
Account and the underlying mutual fund. Smith Barney Inc. serves
as sponsor for the Trust.
<PAGE>
PAGE 73
___________________________________________________________________
2. Summary of Significant Accounting Policies
Investments in Mutual Fund
Investments in shares of the mutual fund portfolios are stated at
market value which is the net asset value per share as determined
by the respective portfolios. Investment transactions are
accounted for on the date the shares are purchased and sold. The
cost of investments sold and redeemed is determined on the average
cost method. Dividend distributions received from the portfolios
are reinvested, net of any expenses payable to IDS Life of New
York, in additional shares of the portfolios and are recorded as
income by the subaccounts on the ex-dividend date.
Unrealized appreciation or depreciation of investments in the
accompanying financial statements represents the subaccounts' share
of the portfolios' undistributed net investment income,
undistributed realized gain or loss and the unrealized appreciation
or depreciation on their investment securities.
Investments in Trust
Investments in units of the Trust are stated at market value which
is the net asset value per unit as determined by the respective
trust. Investment transactions are accounted for on the date the
units are purchased and sold. The cost of investments sold and
redeemed is determined on the average cost method.
Unrealized appreciation or depreciation of investments in the
accompanying financial statements represents the subaccounts' share
of the Trusts' undistributed net investment income, undistributed
realized gain or loss and the unrealized appreciation or
depreciation on their investment securities.
Federal Income Taxes
IDS Life of New York is taxed as a life insurance company. The
Variable Account is treated as part of IDS Life of New York for
federal income tax purposes.
Under existing federal income tax law, no income taxes are payable
with respect to any investment income of the Variable Account.
___________________________________________________________________
3. Mortality and Expense Risk Fee and Policy Charges
IDS Life of New York makes contractual assurances to the Variable
Account that possible future adverse changes in administrative
expenses and mortality experience of the policy owners and
beneficiaries will not affect the Variable Account. The mortality
and expense risk fee paid to IDS Life of New York is computed daily
and is equal on an annual basis to 0.9 percent of the daily net
asset value of the Variable Account. A monthly deduction is made
for the cost of insurance, the policy fee, the cost of any riders
and the death benefit guarantee charge for the policy month. The
cost of insurance for the policy month is determined on the monthly
date by determining the net amount at risk, as of that day, and
<PAGE>
PAGE 74
___________________________________________________________________
3. Mortality and Expense Risk Fee and Policy Charges (continued)
by then applying the cost of insurance rates to the net amount at
risk which IDS Life of New York is assuming for the succeeding
month. The monthly deduction will be taken from the subaccounts as
specified in the application for the policy.
IDS Life of New York deducts a policy fee of $5 per month. This
charge reimburses IDS Life of New York for expenses incurred in
administering the policy, such as processing claims, maintaining
records, making policy changes and communicating with owners of
Policies. IDS Life of New York does not anticipate that it will
make any profit on this charge.
___________________________________________________________________
4. Death Benefit Guarantee Charge and Optional Insurance Benefit
Charge
For each policy month the death benefit guarantee is in effect, IDS
Life of New York deducts a charge of $.01 per $1,000 of the amount
used to determine the death benefit (specified amount) and $.01 per
$1,000 coverage under the other insured rider to compensate it for
the risk assumed in providing the death benefit guarantee.
Each month IDS Life of New York deducts charges for any optional
insurance benefits added to the policy by rider.
___________________________________________________________________
5. Premium Expense Charge
IDS Life of New York deducts a sales charge and a charge for
premium taxes from each premium payment. The total of these
charges is called the premium expense charge.
A sales charge of 2.5 percent of each premium payment will be
deducted to compensate IDS Life of New York for expenses relating
to the distribution of the policy, including agents' commissions,
advertising, and the printing of the prospectuses and sales
literature. In addition, IDS Life of New York may charge a
contingent deferred sales charge if the policy is surrendered or
lapses.
The policy provides that a charge of 1 percent of each premium
payment will be deducted to cover the premium taxes imposed by the
state of New York.
___________________________________________________________________
6. Transaction Charge
IDS Life of New York makes a daily charge against the assets of
each subaccount investing in the Trusts. This charge is intended
to reimburse IDS Life of New York for the transaction charge paid
directly by IDS Life of New York to Smith Barney Inc. on the sale
of the Trust units to the Variable Account. IDS Life of New York
pays these amounts from its general account assets. The amount of
the asset charge is equivalent to an effective annual rate of 0.25<PAGE>
PAGE 75
___________________________________________________________________
6. Transaction Charge (continued)
percent of the account value invested in the Trusts. This amount
may be increased in the future but in no event will it exceed an
effective annual rate of 0.5 percent of the account value. The
charge will be cost-based (taking into account a loss of interest)
with no anticipated element of profit for IDS Life of New York.
___________________________________________________________________
7. Surrender Charge
There are surrender charges for full surrender in the first 10
years of the policy and for 10 years following an increase in
specified amount. They are generally level for 5 years and
decreasing the next 5 years. The surrender charge is based on the
specified amount, the Insured's age, sex and smoker class and the
total gross premium paid. Charges by IDS Life of New York for
surrenders are not available on an individual segregated asset
account basis. Charges for all segregated asset accounts amounted
to $464,724 in 1995, $269,275 in 1994 and $151,536 in 1993. Such
charges are not an expense of the subaccounts or Variable Account.
They are deducted from contract surrender benefits paid by IDS Life
of New York.
___________________________________________________________________
8. Investment Transactions
The subaccounts' purchases of portfolio shares or trust units (net
of charges), including reinvestment of dividend distributions, were
as follows:
<TABLE>
<CAPTION>
Year ended Dec. 31,
Subaccount Investment 1995 1994 1993
<S> <C> <C> <C> <C>
YEQ Equity Portfolio.................... $3,623,207 $ 4,876,621 $2,804,090
YIN Income Portfolio.................... 837,431 771,876 1,195,249
YMM Money Market Portfolio.............. 745,230 284,537 201,103
YMA Managed Portfolio................... 3,068,323 5,378,194 4,161,766
YGS Government Securities Portfolio..... 140,020 176,903 255,959
YIT* International Equity Portfolio...... 771,320 130,259 --
Y95 1995 Trust.......................... 18,702** 14,258 18,361
Y04 2004 Trust.......................... 130,917 149,223 122,392
$9,335,150 $11,781,755 $8,758,920
* Commenced operations on Oct. 28, 1994.
** Securities in the 1995 Trust matured on Nov. 15, 1995.
</TABLE>
<PAGE>
PAGE 76
<TABLE>
<CAPTION>
Condensed Financial Information (unaudited) Period from
Aug. 31 to
Year Ended Dec. 31, Dec. 31,
1995 1994 1993 1992 1991 1990 1989 1988 1987*
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Subaccount YEQ (Equity)
Accumulation unit value at beginning of
period.................................... $1.94 $1.91 $1.70 $1.63 $0.98 $1.04 $0.85 $0.79 $1.00
Accumulation unit value at end of period.. $2.66 $1.94 $1.91 $1.70 $1.63 $0.98 $1.04 $0.85 $0.79
Number of accumulation units outstanding
at end of period (000 omitted)............ 7,545 6,265 4,382 2,916 1,668 1,061 572 349 46
Subaccount YIN (Income)
Accumulation unit value at beginning of
period.................................... $1.72 $1.81 $1.59 $1.47 $1.29 $1.23 $1.10 $1.03 $1.00
Accumulation unit value at end of period.. $2.06 $1.72 $1.81 $1.59 $1.47 $1.29 $1.23 $1.10 $1.03
Number of accumulation units outstanding
at end of period (000 omitted)............ 1,614 1,408 1,308 744 517 369 215 70 7
Subaccount YMM (Money Market)
Accumulation unit value at beginning of
period.................................... $1.39 $1.35 $1.33 $1.29 $1.24 $1.16 $1.07 $1.02 $1.00
Accumulation unit value at end of period.. $1.46 $1.39 $1.35 $1.33 $1.29 $1.24 $1.16 $1.07 $1.02
Number of accumulation units outstanding
at end of period (000 omitted)............ 352 196 193 147 191 167 119 73 3
Subaccount YMA (Managed)
Accumulation unit value at beginning of
period.................................... $2.24 $2.24 $1.89 $1.73 $1.32 $1.23 $0.96 $0.89 $1.00
Accumulation unit value at end of period.. $2.64 $2.24 $2.24 $1.89 $1.73 $1.32 $1.23 $0.96 $0.89
Number of accumulation units outstanding
at end of period (000 omitted)............ 6,737 6,000 4,308 2,720 1,912 1,236 679 454 83
Subaccount YGS (Government Securities)
Accumulation unit value at beginning of
period.................................... $1.66 $1.76 $1.58 $1.50 $1.30 $1.23 $1.09 $1.03 $1.00
Accumulation unit value at end of period.. $1.94 $1.66 $1.76 $1.58 $1.50 $1.30 $1.23 $1.09 $1.03
Number of accumulation units outstanding
at end of period (000 omitted)............ 301 284 244 159 112 69 33 26 2
Subaccount YIT (International Equity)**
Accumulation unit value at beginning of
period.................................... $0.98 $1.00 -- -- -- -- -- -- --
Accumulation unit value at end of period.. $1.36 $0.98 -- -- -- -- -- -- --
Number of accumulation units outstanding
at end of period (000 omitted)............ 759 130 -- -- -- -- -- -- --
Subaccount Y95***
Accumulation unit value at beginning of
period.................................... $1.78 $1.77 $1.68 $1.58 $1.37 $1.26 $1.11 $1.04 $1.00
Accumulation unit value at end of period.. $ - $1.78 $1.77 $1.68 $1.58 $1.37 $1.26 $1.11 $1.04
Number of accumulation units outstanding
at end of period (000 omitted)............ - 105 107 105 104 102 83 29 1
Subaccount Y04 (2004)
Accumulation unit value at beginning of
period.................................... $2.16 $2.41 $2.00 $1.85 $1.55 $1.51 $1.23 $1.09 $1.00
Accumulation unit value at end of period.. $2.79 $2.16 $2.41 $2.00 $1.85 $1.55 $1.51 $1.23 $1.09
Number of accumulation units outstanding
at end of period (000 omitted)........... 279 248 207 183 153 146 105 112 10
* Operations commenced on Aug. 31, 1987.
** Operations commenced on Oct. 28, 1994.
*** Securities in the 1995 Trust matured on Nov. 15, 1995.
</TABLE>
<PAGE>
PAGE 77
IDS Life of New York Account 8
Annual Financial Information
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying individual and combined statements of net
assets of the segregated asset subaccounts of IDS Life of New York Account 8
for Flexible Premium Variable Life Insurance (comprising, respectively, the
YEQ, YIN, YMM, YMA, YGS, YIT, Y95 and Y04 subaccounts) as of December 31,
1995, and the related statements of operations and changes in net assets for
each of the three years in the period then ended, except for the YIT
subaccount which is for the period October 28, 1994 (commencement of
operations) to December 31, 1995, and the Y95 subaccount which is for the
period January 1, 1993 to November 15, 1995 (date of maturity of securities
in the trust). These financial statements are the responsibility of the
management of IDS Life Insurance Company of New York. 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.
Our procedures included confirmation of securities owned at December 31,
1995 with the affiliated mutual fund manager and the unit investment trust
sponsor. 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 individual and combined financial position of
the segregated asset subaccounts of IDS Life of New York Account 8 for
Flexible Premium Variable Life Insurance at December 31, 1995 and the
individual and combined results of its operations and the changes in its net
assets for the periods described above, in conformity with generally
accepted accounting principles.
ERNST & YOUNG LLP
Minneapolis, Minnesota
March 15, 1996
<PAGE>
PAGE 78
IDS Life of New York Financial Information
The financial statements shown below are those of the insurance
company and not those of any other entity. They are included in
the prospectus for the purpose of informing investors as to the
financial condition of the insurance company and its ability to
carry out its obligations under its variable contracts.
<TABLE>
<CAPTION>
IDS Life Insurance Company of New York
Balance Sheets Dec. 31, 1995 Dec. 31, 1994
Assets (thousands)
<S> <C> <C>
Investments:
Fixed maturities:
Held to maturity, at amortized cost
(Fair value: 1995, $683,147; 1994, $653,080) $ 642,580 $ 686,483
Available for sale, at fair value
(Amortized cost: 1995, $577,068;
1994, $474,599) 601,298 455,103
1,243,878 1,141,586
Mortgage loans on real estate
(Fair value: 1995, $168,194; 1994, $157,085) 158,730 164,916
Policy loans 18,035 14,899
Other investments 1,915 1,524
Total investments 1,422,558 1,322,925
Cash and cash equivalents -- 5,262
Accrued investment income 22,572 21,517
Deferred policy acquisition costs 109,800 100,078
Other assets 2,108 1,584
Separate account assets 724,212 506,208
Total assets $2,281,250 $1,957,574
Liabilities and Stockholder's Equity
Liabilities:
Fixed annuities - future policy benefits $1,109,167 $1,087,367
Universal life-type insurance - future
policy benefits 136,475 127,871
Traditional life, disability income and
long-term care insurance - future policy
benefits 42,477 40,546
Policy claims and other policyholders' funds 3,644 3,217
Deferred income taxes 15,663 2,044
Amounts due to brokers 10,000 --
Other liabilities 21,029 18,600
Separate account liabilities 724,212 506,208
Total liabilities 2,062,667 1,785,853
Stockholder's equity:
Capital stock, $10 par value per share; 200,000
shares authorized, issued and outstanding 2,000 2,000
Additional paid-in capital 49,000 49,000
Net unrealized gain (loss) on investments 15,341 (12,369)
Retained earnings 152,242 133,090
Total stockholder's equity 218,583 171,721
Total liabilities and stockholder's equity $2,281,250 $1,957,574
Commitments and contingencies (Note 7)
See accompanying notes.
</TABLE>
<PAGE>
PAGE 79
<TABLE>
<CAPTION>
____________________________________________________________________________
Statements of Income Years ended Dec. 31,
1995 1994 1993
(thousands)
____________________________________________________________________________
<S> <C> <C> <C>
Revenues:
Traditional life, disability income and
long-term care insurance premiums $ 9,280 $ 7,846 $ 7,110
Policyholder and contractholder charges 13,216 11,607 9,634
Mortality and expense risk fees 6,213 4,562 2,904
Net investment income 110,924 108,143 110,147
Net realized gain on investments 1,548 957 1,334
Total revenues 141,181 133,115 131,129
Benefits and expenses:
Death and other benefits - traditional
life, disability income and long-term
care insurance 3,354 6,016 5,715
Death and other benefits - universal
life-type insurance and investment contracts 4,548 3,773 2,465
Increase (decrease) in liabilities for future
policy benefits for traditional life,
disability income and long-term care insurance 1,958 506 (1,343)
Interest credited on universal life-type
insurance and investment contracts 68,630 65,018 68,987
Amortization of deferred policy
acquisition costs 13,085 12,994 10,434
Other insurance and operating expenses 7,474 8,359 7,652
Total benefits and expenses 99,049 96,666 93,910
Income before income taxes 42,132 36,449 37,219
Income taxes 14,745 12,794 13,335
Net income $ 27,387 $ 23,655 $ 23,884
See accompanying notes.
<PAGE>
PAGE 80
__________________________________________________________________________
Statements of Cash Flows Years ended Dec. 31,
1995 1994 1993
(thousands)
Cash flows from operating activities:
Net income $ 27,387 $ 23,655 $ 23,884
Adjustments to reconcile net income to net
cash provided by operating activities:
Issuance - policy loans, excluding
universal life-type insurance (2,093) (1,365) (1,044)
Repayment - policy loans, excluding
universal life-type insurance 881 849 455
Change in accrued investment income (1,055) (175) (1,476)
Change in deferred policy acquisition
costs, net (11,017) (11,522) (10,622)
Change in liabilities for future policy
benefits for traditional life, disability
income and long-term care insurance 1,931 501 (939)
Change in policy claims and other
policyholders' funds 427 870 282
Change in deferred income taxes (1,301) (4,321) (449)
Change in other liabilities 2,429 (1,711) 4,348
Amortization of premium (accretion
of discount), net (480) 2,464 (1,598)
Net realized gain on investments (1,548) (957) (1,334)
Premiums related to universal life-type
insurance 21,694 19,522 15,141
Surrenders and death benefits related to
universal life-type insurance (13,164) (13,208) (9,785)
Interest credited to account balances related
to universal life-type insurance 7,036 6,640 6,892
Policyholder and contractholder
charges, non-cash (6,962) (6,000) (5,663)
Other, net (508) 689 (780)
Net cash provided by operating activities $ 23,657 $ 15,931 $ 17,312
Cash flows from investing activities:
Fixed maturities held to maturity:
Purchases $(37,540) $(36,560) $ --
Maturities, sinking fund payments and calls 34,216 78,757 --
Sales 28,905 2,649 --
Fixed maturities available for sale:
Purchases (133,503) (117,965) --
Maturities, sinking fund payments and calls 44,234 70,316 --
Sales 8,839 14,533 --
Investment securities:
Purchases -- -- (331,900)
Maturities, sinking fund payments and calls -- -- 265,059
Sales -- -- 28,519
Other investments, excluding policy loans:
Purchases (1,939) (47,353) (65,202)
Sales 5,993 2,975 2,568
Change in amounts due to brokers 10,000 (4,952) (10,448)
Net cash used in investing activities (40,795) (37,600) (111,404)
Cash flows from financing activities:
Activity related to investment contracts:
Considerations received 137,737 168,947 149,269
Surrenders and death benefits (177,531) (198,963) (119,158)
Interest credited to account balances 61,594 58,378 62,250
Issuance - policy loans, universal life-type
insurance (4,870) (3,907) (3,403)
Repayment - policy loans, universal life-type
insurance 2,946 2,476 1,886
Cash dividend to parent (8,000) -- --
Net cash provided by financing activities 11,876 26,931 90,844
Net (decrease) increase in cash and cash
equivalents (5,262) 5,262 (3,248)
Cash and cash equivalents at beginning
of year 5,262 - 3,248
Cash and cash equivalents at end of year $ -- $ 5,262 $ --
See accompanying notes.
</TABLE>
<PAGE>
PAGE 81
IDS Life Insurance Company of New York
Notes to Financial Statements ($ thousands)
1. Summary of significant accounting policies
Nature of business
IDS Life Insurance Company of New York (the Company) is engaged in
the insurance and annuity business in the state of New York. The
Company's principal products are deferred annuities and universal
life insurance which are issued primarily to individuals. It
offers single premium and annual premium deferred annuities on both
a fixed and variable dollar basis. Immediate annuities are offered
as well. The Company's insurance products include universal life
(fixed and variable), whole life, single premium life and term
products (including waiver of premium and accidental death
benefits). The Company also markets disability income and long-
term care insurance.
The Company's principal annuity product in terms of amount in force
is the fixed deferred annuity. The annuity contract guarantees a
minimum interest rate during the accumulation period (the time
before annuity payments begin), although the Company normally pays
a higher rate reflective of current market rates. The fixed
annuity provides for a surrender charge during the first seven to
ten years after a purchase payment is made. The Company has also
adopted a practice whereby the higher current rate is guaranteed
for a specified period. The Company also offers a variable annuity
product under the name Flexible Annuity. This is a fixed/variable
annuity offering the purchasers a choice among mutual funds with
portfolios of equities, bonds, managed assets and/or short-term
securities, and the Company's general account, as the underlying
investment vehicles. With respect to funds applied to the variable
portion of the annuity, the purchaser, rather than the Company,
assumes the investment risks and receives the rewards inherent in
the ownership of the underlying investment. The Flexible Annuity
provides for a surrender charge during the first six years after a
purchase payment is made.
The Company's principal insurance product is the flexible-premium,
adjustable-benefit universal life insurance policy. In this type
of insurance policy, each premium payment accumulates interest in a
cash value account. The policyholder has access to the cash
surrender value in whole or in part after the first year. The size
of the cash value of the fund can also be controlled by the
policyholder by increasing or decreasing premiums, subject only to
maintaining a required minimum to keep the policy in force.
Monthly deductions from the cash value of the policy are made for
the cost of insurance, expense charges and any policy riders.
Basis of presentation
The Company is a wholly owned subsidiary of IDS Life Insurance
Company (IDS Life), which is a wholly owned subsidiary of American
Express Financial Corporation, which is a wholly owned subsidiary
of American Express Company. The accompanying financial
statements have been prepared in conformity with generally accepted<PAGE>
PAGE 82
1. Summary of significant accounting policies (continued)
accounting principles which vary in certain respects from reporting
practices prescribed or permitted by the New York Department of
Insurance as reconciled in Note 11.
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 and 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.
Investments
Fixed maturities that the Company has both the positive intent and
the ability to hold to maturity are classified as held to maturity
and carried at amortized cost. All other fixed maturities and all
marketable equity securities are classified as available for sale
and carried at fair value. Unrealized gains and losses on
securities classified as available for sale are carried as a
separate component of stockholder's equity.
Management determines the appropriate classification of fixed
maturities at the time of purchase and reevaluates the
classification at each balance sheet date.
Mortgage loans on real estate are carried principally at the unpaid
principal balances of the related loans. Policy loans are carried
at the aggregate of the unpaid loan balances which do not exceed
the cash surrender values of the related policies. Other
investments include interest rate caps and equity securities. When
evidence indicates a decline in the underlying value or earning
power of individual investments which is other than temporary such
investments are written down to fair value by a charge to income.
Equity securities are carried at market value and the related net
unrealized appreciation or depreciation is reported as a credit or
charge to stockholder's equity.
Realized investment gain or loss is determined on an identified
cost basis.
Prepayments are anticipated on certain investments in mortgage-
backed securities in determining the constant effective yield used
to recognize interest income. Prepayment estimates are based on
information received from brokers who deal in mortgage-backed
securities.
Statements of cash flows
The Company considers investments with a maturity at the date of
their acquisition of three months or less to be cash equivalents.
These securities are carried principally at amortized cost which
approximates fair value.
<PAGE>
PAGE 83
1. Summary of significant accounting policies (continued)
Supplementary information to the statements of cash flows for the
years ended Dec. 31 is summarized as follows:
1995 1994 1993
Cash paid during the year for:
Income taxes $15,026 $17,386 $14,138
Interest on borrowings 742 147 235
Recognition of profits on fixed annuity contracts and insurance
policies
The Company issues single premium deferred annuity contracts that
provide for a service fee (surrender charge) at annually decreasing
rates upon withdrawal of the annuity accumulation value by the
contract owner. No sales fee is deducted from the contract
considerations received on these contracts ("no load" annuities).
All of the Company's single premium deferred annuity contracts
provide for crediting the contract owners' accumulations at
specified rates of interest. Such rates are revised by the Company
from time to time based on changes in the market investment yield
rates for fixed-income securities.
Profits on single premium deferred annuities and installment
annuities are recognized by the Company over the lives of the
contracts and represent the excess of investment income earned from
investment of contract considerations over interest credited to
contract owners and other expenses.
The retrospective deposit method is used in accounting for
universal life-type insurance. This method recognizes profits over
the lives of the policies in proportion to the estimated gross
profits expected to be realized.
Premiums on traditional life, disability income and long-term care
insurance policies are recognized as revenue when collected or due,
and related benefits and expenses are associated with premium
revenue in a manner that results in recognition of profits over the
lives of the insurance policies. This association is accomplished
by means of the provision for future policy benefits and the
deferral and subsequent amortization of policy acquisition costs.
Deferred policy acquisition costs
The costs of acquiring new business, principally sales
compensation, policy issue costs, underwriting and certain sales
expenses, have been deferred on insurance and annuity contracts.
The deferred acquisition costs for single premium deferred
annuities and installment annuities are amortized based upon
surrender charge revenue and a portion of the excess of investment
income earned from investment of the contract considerations over
the interest credited to contract owners. The costs for universal
life-type insurance are amortized over the lives of the policies as
<PAGE>
PAGE 84
1. Summary of significant accounting policies (continued)
a percentage of the estimated gross profits expected to be realized
on the policies. For traditional life, disability income and long-
term care insurance policies, the costs are amortized over an
appropriate period in proportion to premium revenue.
Liabilities for future policy benefits
Liabilities for universal life-type insurance, single premium
deferred annuities and installment annuities are accumulation
values.
Liabilities for fixed annuities in a benefit status are based on
the Progressive Annuity Table with interest at 5 percent, the 1971
Individual Annuity Table with interest at 7 percent or 8.25
percent, or the 1983a Table with various interest rates ranging
from 5.5 percent to 9.5 percent, depending on year of issue.
Liabilities for future benefits on traditional life insurance have
been computed principally by the net level premium method, based on
anticipated rates of mortality (approximating the 1965-1970 Select
and Ultimate Basic Table for policies issued after 1980 and the
1955-1960 Select and Ultimate Basic Table for policies issued prior
to 1981 and the 1975-1980 Select and Ultimate Basic Table for term
insurance policies issued after 1986), policy persistency derived
from IDS Life's experience data (first-year rates ranging from
approximately 70 percent to 90 percent and increasing rates
thereafter), and estimated future investment yields of 4 percent
for policies issued before 1974 and 5.25 percent for policies
issued from 1974 to 1980. Cash value plans issued in 1980 and
later assume future investment rates that grade from 9.5 percent to
5 percent over 20 years. Term insurance issued from 1981 to 1984
assumes an 8 percent level investment rate, and term insurance
issued from 1985 to 1994 assumes investment rates that grade from
10 percent to 6 percent over 20 years, and term insurance issued
after 1994 assumes investment rates that grade from 8 percent to
6.5 percent over 7 years.
Liabilities for future disability income policy benefits have been
computed principally by the net level premium method, based on the
1964 Commissioners Disability Table with the 1958 Commissioners
Standard Ordinary Mortality Table at 3 percent interest for persons
disabled in 1980 and prior, 8 percent interest for persons disabled
from 1981 to 1991, 7 percent interest for persons disabled in 1992
and 6 percent interest for persons disabled after 1992.
Liabilities for future benefits on long-term care insurance have
been computed principally by the net level premium method, using
morbidity rates based on the 1985 National Nursing Home Survey and
mortality rates based on the 1983a Table. The interest rate basis
is 9.5 percent grading to 7 percent over ten years for policies
issued from 1989 to 1992, 7.75 percent grading to 7 percent over
four years for policies issued after 1992, 8 percent for claims
incurred in 1989 to 1991, 7 percent for claims incurred in 1992 and
6 percent for claims incurred after 1992.
<PAGE>
PAGE 85
1. Summary of significant accounting policies (continued)
Reinsurance
The maximum amount of life insurance risk retained by the Company
on any one life is $750 of life and waiver of premium benefits plus
$50 of accidental death benefits. The maximum amount of disability
income risk retained by the Company on any one life is $6 of
monthly benefit for benefit periods longer than three years. The
excesses are reinsured with other life insurance companies on a
yearly renewable term basis.
Federal income taxes
The Company's taxable income is included in the consolidated
federal income tax return of American Express Company. The Company
provides for income taxes on a separate return basis, except that,
under an agreement between American Express Financial Corporation
and American Express Company, tax benefit is recognized for losses
to the extent they can be used on the consolidated tax return. It
is the policy of American Express Financial Corporation to
reimburse a subsidiary for any tax benefit.
Included in other liabilities at Dec. 31, 1995 and 1994 are $3,971
and $3,161, respectively, payable to IDS Life for federal income
taxes.
Separate account business
The separate account assets and liabilities represent funds held
for the exclusive benefit of the variable annuity and variable life
insurance contract owners. The Company receives a monthly cost of
insurance charge and receives a minimum death benefit guarantee fee
from variable life insurance separate accounts and a mortality and
expense assurance fee from the variable annuity and variable life
insurance separate accounts.
The Company makes contractual mortality assurances to the variable
annuity contract owners that the net assets of the separate
accounts will not be affected by future variations in the actual
life expectancy experience of the annuitants and the beneficiaries
from the mortality assumptions implicit in the annuity contracts.
The Company makes periodic fund transfers to, or withdrawals from,
the separate accounts for such actuarial adjustments for variable
annuities that are in the benefit payment period. The Company
guarantees, for the variable life insurance policyholders, the
contractual insurance rate and that the death benefit will never be
less than the death benefit at the date of issuance.
Accounting changes
The Financial Accounting Standards Board's (FASB) SFAS No. 121,
"Accounting for the Impairment of Long-Lived Assets and for Long-
Lived Assets to Be Disposed Of," is effective Jan. 1, 1996. The
new rule is not expected to have a material impact on the Company's
results of operations or financial condition.
<PAGE>
PAGE 86
1. Summary of significant accounting policies (continued)
The Company's adoption of SFAS No. 114 as of Jan. 1, 1995 is
discussed in Note 2.
The Company adopted SFAS No. 115, "Accounting for Certain
Investments in Debt and Equity Securities." The effect of adopting
the new rule was to increase stockholder's equity by approximately
$12 million, net of tax, as of Jan. 1, 1994, but the adoption had
no impact on the Company's net income.
Reclassification
Certain 1994 and 1993 amounts have been reclassified to conform to
the 1995 presentation.
2. Investments
Fair values of investments in fixed maturities represent quoted market
prices and estimated values when quoted prices are not available.
Estimated values are determined by established procedures involving,
among other things, review of market indices, price levels of current
offerings of comparable issues, price estimates and market data from
independent brokers and financial files.
Changes in net unrealized appreciation (depreciation) of
investments for the years ended Dec. 31 are summarized as follows:
1995 1994 1993
Fixed maturities:
Held to maturity $73,970 $(84,244) $ --
Available for sale 43,726 (38,226) --
Investment securities -- -- 25,350
Net realized gain (loss) on investments for the years ended Dec. 31
is summarized as follows:
1995 1994 1993
Fixed maturities $1,997 $948 $1,316
Other investments (449) 9 18
$1,548 $957 $1,334
The amortized cost, gross unrealized gains and losses and fair
value of investments in fixed maturities and equity securities at
Dec. 31, 1995 are as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government agency
obligations $ 5,003 $ 199 $ -- $ 5,202
State and municipal
obligations 150 -- 2 148
Corporate bonds and
obligations 578,253 41,939 2,027 618,165
Mortgage-backed securities 59,174 846 388 59,632
$642,580 $42,984 $2,417 $683,147<PAGE>
PAGE 87
2. Investments (continued)
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
State and municipal
obligations $ 105 $ 10 $ -- $ 115
Corporate bonds and
obligations 248,973 17,470 497 265,946
Mortgage-backed securities 327,990 9,157 1,910 335,237
Total fixed maturities 577,068 26,637 2,407 601,298
Equity securities 10 -- -- 10
$577,078 $26,637 $2,407 $601,308
</TABLE>
The change in net unrealized gain (loss) on available for sale
securities included as a separate component of stockholder's equity
was $27,710 in 1995.
The amortized cost, gross unrealized gains and losses and fair
value of investments in fixed maturities and equity securities at
Dec. 31, 1994 are as follows:
<TABLE>
<CAPTION>
Gross Gross
Amortized Unrealized Unrealized Fair
Held to maturity Cost Gains Losses Value
<S> <C> <C> <C> <C>
U.S. Government agency
obligations $ 398 $ 2 $ 18 $ 382
Corporate bonds and
obligations 622,422 6,564 33,976 595,010
Mortgage-backed securities 63,663 580 6,555 57,688
$686,483 $7,146 $40,549 $653,080
Gross Gross
Amortized Unrealized Unrealized Fair
Available for sale Cost Gains Losses Value
U.S. Government agency
obligations $ 10,000 $ -- $ 135 $ 9,865
State and municipal
obligations 104 1 -- 105
Corporate bonds and
obligations 142,447 2,632 2,447 142,632
Mortgage-backed securities 322,048 381 19,928 302,501
Total fixed maturities 474,599 3,014 22,510 455,103
Equity securities 332 -- 197 135
$474,931 $3,014 $22,707 $455,238
</TABLE>
The change in net unrealized gain (loss) on available for sale
securities included as a separate component of stockholder's equity
was $(12,393) in 1994.
The amortized cost and fair value of investments in fixed
maturities at Dec. 31, 1995 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.
<PAGE>
PAGE 88
2. Investments (continued)
Amortized Fair
Held to maturity Cost Value
Due in one year or less $ 18,748 $ 19,136
Due from one to five years 99,486 105,747
Due from five to ten years 367,875 392,671
Due in more than ten years 97,297 105,961
Mortgage-backed securities 59,174 59,632
$642,580 $683,147
Amortized Fair
Available for sale Cost Value
Due in one year or less $ 15,296 $ 15,473
Due from one to five years 80,249 85,561
Due from five to ten years 108,127 114,937
Due in more than ten years 45,406 50,090
Mortgage-backed securities 327,990 335,237
$577,068 $601,298
During the year ended Dec. 31, 1995, fixed maturities classified as
held to maturity were sold with proceeds of $28,905 and gross
realized gains and losses on such sales were $1,055 and $121,
respectively. The sale of these fixed maturities was due to
significant deterioration in the issuers' creditworthiness. As a
result of adopting the FASB Special Report, "A Guide to
Implementation of Statement 115 on Accounting for Certain
Investments in Debt and Equity Securities," the Company
reclassified securities with a book value of $15,607 and net
unrealized gains of $144 from held to maturity to available for
sale in December 1995.
In addition, fixed maturities available for sale were sold during
1995 with proceeds of $8,839 and gross realized gains and losses on
such sales were $nil and $74, respectively.
During the year ended Dec. 31, 1994, fixed maturities classified as
held to maturity were sold with proceeds of $2,649 and gross
realized gains and losses on such sales were $nil and $86,
respectively. The sale of these fixed maturities was due to
significant deterioration in the issuers' creditworthiness.
In addition, fixed maturities available for sale were sold during
1994 with proceeds of $14,533 and gross realized gains and losses
on such sales were $181 and $308, respectively.
At Dec. 31, 1995, bonds carried at $262 were on deposit with the
state of New York as required by law.
Net investment income for the years ended Dec. 31 is summarized as
follows:
<PAGE>
PAGE 89
2. Investments (continued)
1995 1994 1993
Interest on fixed maturities $ 97,092 $ 93,800 $100,940
Interest on mortgage loans 13,888 13,226 8,424
Other investment income 1,291 1,219 1,220
Interest on cash equivalents 186 363 63
112,457 108,608 110,647
Less investment expenses 1,533 465 500
$110,924 $108,143 $110,147
At Dec. 31, 1995, investments in fixed maturities comprised 87
percent of the Company's total invested assets. Securities are
rated by Moody's and Standard & Poor's (S&P), except for securities
carried at approximately $144 million which are rated by American
Express Financial Corporation internal analysts using criteria
similar to Moody's and S&P. A summary of investments in fixed
maturities, at amortized cost, by rating on Dec. 31 is as follows:
Rating 1995 1994
Aaa/AAA $ 391,321 $ 393,736
Aa/AA 17,572 18,857
Aa/A 9,950 9,710
A/A 209,483 191,694
A/BBB 61,912 57,206
Baa/BBB 357,445 340,271
Baa/BB 46,029 48,552
Below investment grade 125,936 101,056
$1,219,648 $1,161,082
At Dec. 31, 1995, 90 percent of the securities rated Aaa/AAA are
GNMA, FNMA and FHLMC mortgage-backed securities. No holdings of
any other issuer are greater than 1 percent of the Company's total
investments in fixed maturities.
At Dec. 31, 1995, approximately 11.2 percent of the Company's
invested assets were mortgage loans on real estate. Summaries of
mortgage loans by region and by type of real estate are as follows:
<TABLE>
<CAPTION>
Dec. 31, 1995 Dec. 31, 1994
On Balance Commitments On Balance Commitments
Region Sheet to Purchase Sheet to Purchase
<S> <C> <C> <C> <C>
West North Central $ 23,705 $ -- $ 26,660 $--
East North Central 34,207 -- 35,018 --
South Atlantic 38,802 2,033 39,516 18
Middle Atlantic 23,502 -- 24,061 --
Pacific 13,150 -- 13,297 --
Mountain 14,937 5,084 15,218 --
New England 8,982 -- 9,674 --
East South Central 1,613 7,407 1,629 --
West South Central 277 -- 288 --
159,175 14,524 165,361 18
Less allowance for losses 445 -- 445 --
$158,730 $14,524 $164,916 $18
<PAGE>
PAGE 90
2. Investments (continued)
Dec. 31, 1995 Dec. 31, 1994
On Balance Commitments On Balance Commitments
Property type Sheet to Purchase Sheet to Purchase
Apartments $ 64,136 $ 7,988 $ 65,389 $18
Department/retail stores 55,308 -- 57,608 --
Office buildings 12,367 6,536 13,107 --
Industrial buildings 13,255 -- 13,583 --
Medical buildings 5,255 -- 6,704 --
Nursing/retirement 6,565 -- 6,644 --
Other 2,012 -- 2,038 --
Hotels/motels 277 -- 288 --
159,175 14,524 165,361 18
Less allowance for losses 445 -- 445 --
$158,730 $14,524 $164,916 $18
</TABLE>
Mortgage loan fundings are restricted by state insurance regulatory
authority to 80 percent or less of the market value of the real
estate at the time of origination of the loan. The Company holds
the mortgage document, which gives the right to take possession of
the property if the borrower fails to perform according to the
terms of the agreement. The fair value of the mortgage loans is
determined by a discounted cash flow analysis using mortgage
interest rates currently offered for mortgages of similar
maturities. Commitments to purchase mortgages are made in the
ordinary course of business. The fair value of the mortgage
commitments is $nil.
As of Jan. 1, 1995, the Company adopted Statement of Financial
Accounting Standards No. 114, "Accounting by Creditors for
Impairment of a Loan" (SFAS No. 114), as amended by Statement of
Financial Accounting Standards No. 118, "Accounting by Creditors
for Impairment of a Loan - Income Recognition and Disclosures".
The adoption of the new rules did not have a material impact on the
Company's results of operations or financial condition.
SFAS No. 114 applies to all loans except for smaller-balance
homogeneous loans, that are collectively evaluated for impairment.
Impairment is measured as the excess of the loan's recorded
investment over its present value of expected principal and
interest payments discounted at the loan's effective interest rate,
or the fair value of collateral. The amount of the impairment is
recorded as a reserve for investment losses.
Based on management's judgment as to the ultimate collectibility of
principal, interest payments received are either recognized as
income or applied to the recorded investment in the loan until it
has been recovered. Once the recorded investment has been
recovered, any additional payments are recognized as interest
income.
The reserve for investment losses is maintained at a level that
management believes is adequate to absorb estimated credit losses
in the portfolio. The level of the reserve account is determined
based on several factors, including historical experience, expected
future principal and interest payments, estimated collateral
values, and current and anticipated economic and political
conditions. Management regularly evaluates the adequacy of the
reserve for investment losses.<PAGE>
PAGE 91
2. Investments (continued)
At Dec. 31, 1995, the Company's recorded investment in impaired
loans was $2,052 with a reserve of $445. During the year, the
average recorded investment in impaired loans was $3,003. There
was no change in the reserve for investment losses from the prior
year.
The Company recognized $204 of interest income related to impaired
loans for the year ended Dec. 31, 1995.
3. Income taxes
The Company qualifies as a life insurance company for federal
income tax purposes. As such, the Company is subject to the
Internal Revenue Code provisions applicable to life insurance
companies.
Income tax expense consists of the following:
1995 1994 1993
Federal income taxes:
Current $15,146 $16,419 $13,164
Deferred (1,301) (4,320) (449)
13,845 12,099 12,715
State income taxes-current 900 695 620
Income tax expense $14,745 $22,794 $13,335
Increases (decreases) to the federal tax provision applicable to
pretax income based on the statutory rate are attributable to:
<TABLE>
<CAPTION>
1995 1994 1993
Provision Rate Provision Rate Provision Rate
<S> <C> <C> <C> <C> <C> <C>
Federal income taxes based
on the statutory rate $14,746 35.0% $12,757 35.0% $13,026 35.0%
Increases (decreases) are
attributable to:
Tax-excluded interest
and dividend income (464) (1.1) (554) (1.5) (557) (1.5)
Other, net (437) (1.0) (104) (0.3) 246 0.7
Federal income taxes $13,845 32.9% $12,099 33.2% $12,715 34.2%
</TABLE>
A portion of life insurance company income earned prior to 1984 was
not subject to current taxation but was accumulated, for tax
purposes, in a "policyholders' surplus account." At Dec. 31, 1995,
the Company had a policyholders' surplus account balance of $798.
The policyholders' surplus account is only taxable if dividends to
the stockholder exceed the stockholder's surplus account or if the
Company is liquidated. Deferred income taxes of $279 have not been
established because no distributions of such amounts are
contemplated.
<PAGE>
PAGE 92
3. Income taxes (continued)
Significant components of the Company's deferred tax assets and
liabilities as of Dec. 31 are as follows:
1995 1994
Deferred tax assets:
Policy reserves $ 26,237 $21,567
Investments -- 3,331
Other 2,791 2,991
Total deferred tax assets 29,028 27,889
Deferred tax liabilities:
Deferred policy acquisition costs 33,001 29,933
Investments 11,690 --
Total deferred tax liabilities 44,691 29,933
Net deferred tax liabilities $(15,663) $(2,044)
The Company is required to establish a "valuation allowance" for
any portion of the deferred tax assets that management believes
will not be realized. In the opinion of management, it is more
likely than not that the Company will realize the benefit of the
deferred tax assets, and, therefore, no such valuation allowance
has been established.
4. Stockholder's equity
Retained earnings available for distribution as dividends to the
parent are limited to the Company's surplus as determined in
accordance with accounting practices prescribed by the New York
Department of Insurance. Statutory unassigned surplus aggregated
$85,964 as of Dec. 31, 1995 and $70,974 as of Dec. 31, 1994 (see
Note 3 with respect to the income tax effect of certain
distributions).
Dividends paid to parent were $8,000 in 1995, $nil in 1994 and $nil
in 1993.
During 1995, the Company incurred a loss of $235 on the sale of an
interest rate cap to IDS Life. This loss has been reflected as a
direct charge to stockholder's equity in the accompanying financial
statements.
5. Retirement plan and services
Until July 1, 1995, the Company participated in the IDS Retirement
Plan of American Express Financial Corporation which covered all
permanent employees age 21 and over who had met certain employment
requirements. Effective July 1, 1995, the IDS Retirement Plan was
merged with American Express Company's American Express Retirement
Plan, which simultaneously was amended to include a cash balance
formula and a lump sum distribution option. Employer contributions
to the plan are based on participants' age, years of service and
total compensation for the year. Funding of retirement costs for
this plan complies with the applicable minimum funding requirements
specified by ERISA. The Company's share of the total net periodic
pension cost was $nil in 1995, 1994 and 1993.<PAGE>
PAGE 93
5. Retirement plan and services (continued)
The Company has a "Sales Benefit Plan" which is an unfunded,
noncontributory retirement plan for all eligible financial
advisors. Total plan costs for 1995, 1994 and 1993, which are
calculated on the basis of commission earnings of the individual
financial advisors, were $1,392, $1,372 and $1,042, respectively.
Such costs are included in deferred policy acquisition costs.
The Company also participates in defined contribution pension plans
of American Express Company which cover all employees who have met
certain employment requirements. Company contributions to the
plans are a percent of either each employee's eligible compensation
or basic contributions. Costs of these plans charged to operations
in 1995, 1994 and 1993 were $231, $251 and $201, respectively.
The Company participates in defined benefit health care plans of
American Express Financial Corporation that provide health care and
life insurance benefits to retired employees and retired financial
advisors. The plans include participant contributions and service-
related eligibility requirements. Upon retirement, such employees
are considered to have been employees of American Express Financial
Corporation. American Express Financial Corporation expenses these
benefits and allocates the expenses to its subsidiaries.
Accordingly, costs of such benefits to the Company are included in
employee compensation and benefits and cannot be identified on a
separate company basis. At Dec. 31, 1995, the total accumulated
post retirement benefit obligation, has been recorded as a
liability by American Express Financial Corporation.
6. Incentive plan and operating expenses
The Company maintains a "Persistency Payment Plan." Under the
terms of this plan, financial advisors earn additional compensation
based on the volume and persistency of insurance sales. The total
costs for the plan for 1995, 1994 and 1993 were $1,720, $1,287 and
$1,387, respectively. Such costs are included in deferred policy
acquisition costs.
Charges by IDS Life and American Express Financial Corporation for
the use of joint facilities, marketing services and other services
aggregated $12,122, $9,314 and $7,421 for 1995, 1994 and 1993,
respectively. Certain of the costs assessed to the Company are
included in deferred policy acquisition costs.
7. Commitments and contingencies
At Dec. 31, 1995 and 1994, traditional life insurance and universal
life-type insurance in force aggregated $3,502,851 and $3,155,571,
respectively, of which $163,462 and $162,956 were reinsured at the
respective year ends.
In addition, the Company has a stop loss reinsurance agreement with
IDS Life covering ordinary life benefits. IDS Life agrees to pay
all death benefits incurred each year which exceed 125 percent of
normal claims, where normal claims are defined in the agreement as
.095 percent of the mean retained life insurance in force. <PAGE>
PAGE 94
7. Commitments and contingencies (continued)
Premiums ceded to IDS Life amounted to $85, $76 and $67 for the
years ended Dec. 31, 1995, 1994 and 1993, respectively. Claim
recoveries under the terms of this reinsurance agreement were $nil
in 1995, 1994 and 1993.
Premiums ceded to reinsurers other than IDS Life amounted to $269,
$721 and $741 for the years ended Dec. 31, 1995, 1994 and 1993,
respectively. Reinsurance recovered from reinsurers other than IDS
Life amounted to $576, $14 and $379 for the years ended Dec. 31,
1995, 1994 and 1993.
Reinsurance contracts do not relieve the Company from its primary
obligations to policyholders.
The Company has an agreement to assume a block of extended term
life insurance business. The amount of insurance in force related
to this agreement was $392,106 and $447,317 at Dec. 31, 1995 and
1994, respectively. The accompanying statement of income includes
premiums of $nil for the years ended Dec. 31, 1995, 1994 and 1993,
and decrease in liabilities for future policy benefits of $2,039,
2,538 and $3,032 related to this agreement for the years ended Dec.
31, 1995, 1994 and 1993, respectively.
8. Lines of credit
The Company has available lines of credit with two banks
aggregating $30,000 at 40 to 80 basis points over each bank's cost
of funds. Outstanding borrowings under these agreements were $nil
at Dec. 31, 1995 and 1994.
9. Derivative financial instruments
The Company enters into transactions involving derivative
financial instruments to manage its exposure to interest rate risk,
including hedging specific transactions. The Company manages risks
associated with these instruments as described below. The Company
does not hold derivative instruments for trading purposes.
Market risk is the possibility that the value of the derivative
financial instruments will change due to fluctuations in a factor
from which the instrument derives its value, primarily an interest
rate. The Company is not impacted by market risk related to
derivatives held for non-trading purposes beyond that inherent in
cash market transactions. Derivatives held for purposes other than
trading are largely used to manage risk and, therefore, the cash
flow and income effects of the derivatives are inverse to the
effects of the underlying transactions.
Credit risk is the possibility that the counterparty will not
fulfill the terms of the contract. The Company monitors credit
exposure related to derivative financial instruments through
established approval procedures, including setting concentration
limits by counterparty and industry, and requiring collateral,
where appropriate. A vast majority of the Company's counterparties
are rated A or better by Moody's and Standard & Poor's.<PAGE>
PAGE 95
9. Derivative financial instruments (continued)
The notional or contract amount of a derivative financial
instrument is generally used to calculate the cash flows that are
received or paid over the life of the agreement. Notional amounts
are not recorded on the balance sheet. Notional amounts far exceed
the related credit exposure.
Credit exposure related to interest rate caps is measured by
replacement cost of the contracts. The replacement cost represents
the fair value of the instruments.
<TABLE>
<CAPTION>
Notional Carrying Fair Total Credit
Dec. 31, 1995 Amount Value Value Exposure
<S> <C> <C> <C> <C>
Assets:
Interest rate caps $300,000 $1,905 $745 $745
Dec. 31, 1994
Assets:
Interest rate caps $200,000 $1,389 $828 $828
</TABLE>
The fair values of derivative financial instruments are based on
market values, dealer quotes or pricing models. The interest rate
caps expire on various dates from 1997 to 2000.
Interest rate caps are used to manage the Company's exposure to
rising interest rates. These instruments are used primarily to
protect the margin between interest rates earned on investments and
the interest rates credited to related annuity contract holders.
The cost of interest rate caps is amortized to interest expense
over the life of the contracts and payments received as a result
of these agreements are recorded as a reduction of interest expense
when realized. The amortized cost of interest rate cap contracts
is included in other investments.
10. Fair values of financial instruments
The Company discloses fair value information for most on- and off-
balance sheet financial instruments for which it is practical to
estimate that value. Fair values of life insurance obligations,
receivables and all non-financial instruments, such as deferred
acquisition costs are excluded. Off-balance sheet intangible
assets, such as the value the field force, are also excluded.
Management believes the value of excluded assets is significant.
The fair value of the Company, therefore, cannot be estimated by
aggregating the amounts presented.
<PAGE>
PAGE 96
10. Fair values of financial instruments (continued)
<TABLE>
<CAPTION>
1995 1994
Carrying Fair Carrying Fair
Financial Assets Value Value Value Value
<S> <C> <C> <C> <C>
Investments:
Fixed maturities (Note 2):
Held to maturity $ 642,580 $ 683,147 $ 686,483 $ 653,080
Available for sale 601,298 601,298 455,103 455,103
Mortgage loans on real
estate (Note 2) 158,730 168,194 164,916 157,085
Other:
Equity securities (Note 2) 10 10 135 135
Derivative financial
instruments (Note 9) 1,905 745 1,389 828
Cash and cash equivalents
(Note 1) -- -- 5,262 5,262
Separate account assets
(Note 1) 724,212 724,212 506,208 506,208
Financial Liabilities
Future policy benefits for
fixed annuities 1,038,431 1,005,004 1,025,881 991,358
Separate account liabilities 678,263 645,389 474,958 448,665
</TABLE>
At Dec. 31, 1995 and 1994, the carrying amount and fair value of
future policy benefits for fixed annuities exclude life insurance-
related contracts carried at $67,843 and $59,803, respectively,
and policy loans of $2,893 and $1,683, respectively. The fair
value of these benefits is based on the status of the annuities at
Dec. 31, 1995 and 1994. The fair value of deferred annuities is
estimated as the carrying amount less any surrender charges and
related loans. The fair value for annuities in non-life contingent
payout status is estimated as the present value of projected
benefit payments at rates appropriate for contracts issued in 1995
and 1994.
At Dec. 31, 1995 and 1994, the fair value of liabilities related to
separate accounts is estimated as the carrying amount less
applicable surrender charges and less variable insurance contracts
carried at $45,949 and $31,250, respectively.
11. Statutory insurance accounting practices
Reconciliations of net income for 1995, 1994 and 1993 and
stockholder's equity at Dec. 31, 1995 and 1994, as shown in the
accompanying financial statements, to that determined using
statutory accounting practices are as follows:
<TABLE>
<CAPTION>
1995 1994 1993
<S> <C> <C> <C>
Net income, per accompanying
financial statements $ 27,387 $ 23,655 $ 23,884
Deferred policy acquisition costs (9,722) (12,187) (10,622)
Adjustments of future policy
benefit liabilities (10,655) 13,741 13,597
Deferred federal income taxes (1,301) (4,321) (462)
Provision for losses on investments -- (1,652) 438
Separate account gains 20,769 142 2,708
Other, net (1,678) 755 (1,182)
Net income, on basis of
statutory accounting practices
$24,800 $ 20,133 $ 28,361<PAGE>
PAGE 97
11. Statutory insurance accounting practices (continued)
1995 1994
<S> <C> <C>
Stockholder's equity, per
accompanying financial
statements $ 218,583 $ 171,721
Deferred policy acquisition costs (109,800) (100,078)
Adjustments of future policy
benefit liabilities 23,172 33,827
Deferred federal income taxes 15,663 2,044
Securities valuation reserve (18,029) (15,939)
Adjustments of separate account
liabilitiess 34,326 13,557
Net unrealized loss on
investments (24,231) 19,497
Premiums due 925 851
Deferred revenue liability 794 834
Allowance for losses 445 445
Non-admitted assets (578) (503)
Interest maintenance reserve (2,442) (2,110)
Other, net 347 249
Stockholder's equity, on basis
of statutory accounting
practices $ 139,175 $ 124,395
</TABLE>
<PAGE>
PAGE 98
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the accompanying balance sheets of IDS Life
Insurance Company of New York (a wholly owned subsidiary of IDS
Life Insurance Company) as of December 31, 1995 and 1994, and the
related statements of income and cash flows for each of the three
years in the period ended December 31, 1995. 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 IDS
Life Insurance Company of New York at December 31, 1995 and 1994,
and the results of its operations and its cash flows for each of
the three years in the period ended December 31, 1995, in
conformity with generally accepted accounting principles.
As discussed in Note 1 to the financial statements, the Company
changed its method of accounting for certain investments in debt
and equity securities in 1994.
Ernst & Young LLP
February 2, 1996
Minneapolis, Minnesota
<PAGE>
PAGE 99
(REG2) PART II
UNDERTAKINGS TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the
Securities 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
hereto or hereafter duly adopted pursuant to authority conferred in
that section.
RULE 484 UNDERTAKING
The By-Laws of IDS Life Insurance Company of New York provide that:
To the extent permitted and in the manner prescribed by law,
the Corporation shall indemnify any person made, or threatened
to be made, a party to any action, suit or proceeding, civil
or criminal, by reason of the fact that he, his testator or
intestate, is or was Director or Officer of the Corporation or
of any other corporation of any type or kind, domestic or
foreign, which he served in any capacity at the request of the
Corporation, against judgements, fines, amounts paid in
settlement and reasonable expenses (which the Corporation may
advance), including attorneys' fees, actually and necessarily
incurred as a result of such action, suit or proceeding, or
any appeal therein.
Insofar as indemnification for liability arising under the
Securities Act of 1933 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.
<PAGE>
PAGE 100
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 14 TO REGISTRATION NO. 33-
15290
This Post-Effective Amendment No. 14 to Registration Statement
No. 33-15290 comprises the following papers and documents:
The facing sheet.
The prospectus consisting of 89 pages.
The undertaking to file reports.
The signatures.
The following exhibits:
1. A. Copies of all exhibits required by paragraph A of
instructions for Exhibits in Form N-8B-2 to the
Registration Statement.
(1) Resolution of Board of Directors of IDS Life of New
York authorizing the Trust, adopted September 12,
1985, filed electronically as Exhibit 1.A.(1) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is incorporated
herein by reference.
(2) Not applicable.
(3) (a) Not applicable.
(b) i) Explanation of New York Sales Agreements,
filed electronically as Exhibit
1.A.(3)(b)(i) to Registrant's Form N-8B-2
with Post-Effective Amendment No. 11, File
No. 33-15290 is incorporated herein by
reference.
ii) Form of Personal Financial Planner's
Agreement with IDS Financial Services
Inc., filed electronically as Exhibit
1.A.(3)(b)(ii) to Registrant's Form N-8B-2
with Post-Effective Amendment No. 11, File
No. 33-15290 is incorporated herein by
reference.
iii) Form of Personal Financial Planner's
Agreement with IDS Life Insurance Company
of New York, filed electronically as
Exhibit 1.A.(3)(b)(iii) to Registrant's
Form N-8B-2 with Post-Effective Amendment
No. 11, File No. 33-15290 is incorporated
herein by reference.
<PAGE>
PAGE 101
iv) Form of "Field Trainer's" Rider to
Personal Financial Planner's Agreement,
filed electronically as Exhibit
1.A.(3)(b)(iv) to Registrant's Form N-8B-2
with Post-Effective Amendment No. 11, File
No. 33-15290 is incorporated herein by
reference.
v) Form of District Manager's Rider to
Personal Financial Planner's Agreement,
filed electronically as Exhibit
1.A.(3)(b)(v) to Registrant's Form N-8B-2
with Post-Effective Amendment No. 11, File
No. 33-15290 is incorporated herein by
reference.
vi) Form of "New York District Manager-
Insurance" Rider to Personal Financial
Planner's Agreement, filed electronically
as Exhibit 1.A.(3)(b)(vi) to Registrant's
Form N-8B-2 with Post-Effective Amendment
No. 11, File No. 33-15290 is incorporated
herein by reference.
vii) Form of Division Manager's Agreement with
IDS Financial Services Inc., filed
electronically as Exhibit 1.A.(3)(b)(vii)
to Registrant's Form N-8B-2 with Post-
Effective Amendment No. 11, File No. 33-
15290 is incorporated herein by reference.
viii) Form of "New York Division Manager-
Insurance" Rider to Division Manager's
Agreement with IDS Financial Services
Inc., filed electronically as Exhibit
1.A.(3)(b)(viii) to Registrant's Form N-
8B-2 with Post-Effective Amendment No. 11,
File No. 33-15290 is incorporated herein
by reference.
(c) Flexible Premium Variable Life Insurance
Compensation: IDS Life of New York, filed
electronically as Exhibit 1.A.(3)(c) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.
(4) Not applicable.
(5) Flexible Premium Variable Life Insurance Policy,
dated April 1, 1987, filed electronically as Exhibit
1.A.(5) to Registrant's Form N-8B-2 with Post-
Effective Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.
<PAGE>
PAGE 102
(6) (a) Certificate of Amendment of the Certificate of
Incorporation of IDS Life Insurance Company of
New York, filed electronically as Exhibit
1.A.(6)(a) to Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11, File No. 33-
15290 is incorporated herein by reference.
(b) Amended Bylaws of IDS Life Insurance Company of
New York, dated May 1992, filed electronically
as Exhibit 1.A.(6)(b) to Post-Effective
Amendment No. 12, File No. 33-15290 is
incorporated herein by reference.
(7) Not applicable.
(8) (a) Investment Management and Services Agreement
between IDS Life Insurance Company and IDS Life
Series Fund, Inc., dated December 17, 1985,
filed electronically as Exhibit 1.A.(8)(a) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.
(b) Investment Advisory Agreement between IDS Life
Insurance Company (IDS Life) and IDS/American
Express Inc. (IDS), dated July 11, 1984, filed
electronically as Exhibit 1.A.(8)(b) to
Registrant's Form N-8B-2 with Post-Effective
Amendment No. 11, File No. 33-15290 is
incorporated herein by reference.
(c) Reference Trust Indenture among Shearson Lehman
Brothers Inc., the Bank of New York and
Standard & Poor's Corporation, dated August 4,
1986, filed electronically as Exhibit
1.A.(8)(c) to Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11, File No. 33-
15290 is incorporated herein by reference.
(d) Standard Terms and Conditions of Trust,
effective August 4, 1986, filed electronically
as Exhibit 1.A.(8)(d) to Registrant's Form N-
8B-2 with Post-Effective Amendment No. 11, File
No. 33-15290 is incorporated herein by
reference.
(9) None.
(10) Application form for the Flexible Premium Variable
Life Insurance Policy, filed electronically as
Exhibit 1.A.(10) to Registrant's Form N-8B-2 with
Post-Effective Amendment No. 11, File No. 33-15290
is incorporated herein by reference.
<PAGE>
PAGE 103
(11) Description of Transfer and Redemption Procedures and
Method of Conversion to Fixed Benefit Policies, filed
electronically as Exhibit 1.A.(11) to Registrant's Form
N-8B-2 with Post-Effective Amendment No. 11, File No. 33-
15290 is incorporated herein by reference.
B (1) Not applicable.
(2) Not applicable.
C. Not applicable
2. Opinion of Counsel and consent to its use as to the legality
of the securities registered filed electronically with
Registrant's 24f-2 notice on or about February 25, 1994 is
herein incorporated by reference.
3. Financial Statement Schedules
Schedule I - Summary of Investments other than
Investments in Related Parties
Schedule III - Supplementary Insurance Information
Schedule IV - Reinsurance
Schedule V - Valuation and Qualifying Accounts
Report of Independent Auditors dated February 2, 1996.
All other schedules to the consolidated financial statements
required by Article 7 of Regulation S-X are not required under
the related instructions or are inapplicable and, therefore,
have been omitted.
4. Not applicable.
5. Financial Data Schedules are filed electronically herewith.
(a) Financial Data Schedule - IDS Life of New York Insurance
Company.
(b) Financial Data Schedule - IDS Life of New York Account 8.
6. Opinion of Tracy A. Anderson dated April 17, 1996 is filed
electronically herewith as Exhibit No. 6 to Registrant's Post-
Effective Amendment No. 14, File No. 33-15290.
7. (a) Written consent of William A. Stoltzmann, dated June 19,
1987, filed as Exhibit 7(a) to Registrant's Form N-8B-2
with Post-Effective Amendment No. 11, File No. 33-15290
is incorporated herein by reference.
(b) Written consent of Tracy A. Anderson dated April 17,
1996, is filed electronically herewith as Exhibit No.
7(b) to Registrant's Post-Effective Amendment No. 14,
File No. 33-15290.
<PAGE>
PAGE 104
(c) Written consent of Ernst & Young LLP is filed
electronically herewith as Exhibit No. 7(c) to
Registrant's Post-Effective Amendment No. 14, File No.
33-15290.
(d) Directors' Power of Attorney to sign amendments to this
Registration Statement dated April 16, 1996, is filed
electronically herewith as Exhibit 7(d) to Registrant's
Form N-8B-2 with Post-Effective Amendment No. 14, File
No. 33-15290.
<PAGE>
PAGE 105
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940 IDS Life Insurance Company of New
York on behalf of the Registrant, certifies that it meets
requirements for effectiveness of this Amendment to its
Registration Statement pursuant to Rule 485(b) under the Securities
Act of 1933 and has duly caused this Registration Statement to be
signed on behalf of the Registrant by the undersigned, thereunto
duly authorized, in this City of Minneapolis, and State of
Minnesota on the 26th day of April, 1996.
IDS Life of New York Account 8
(Registrant)
By IDS Life Insurance Company of New York
(Sponsor)
By/s/ Richard W. Kling*
Richard W. Kling
By: ________________________________
Mary Ellyn Minenko
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following Officers
and Directors of IDS Life Insurance Company of New York in the
capacities indicated on the 26th day of April, 1996:
Signature Title
/s/ Richard W. Kling* Director and President
Richard W. Kling
/s/ John C. Boeder* Director
John C. Boeder
/s/ Roger C. Corea* Director
Roger C. Corea
/s/ Charles A. Cuccinello* Director
Charles A. Cuccinello
/s/ Milton R. Fenster* Director
Milton R. Fenster
/s/ Robert A. Hatton* Director
Robert A. Hatton
/s/ Edward Landes* Director
Edward Landes
<PAGE>
PAGE 106
Signature Title
/s/ Michael P. Monaco* Director
Michael P. Monaco
/s/ Stephen P. Norman* Director
Steven P. Norman
/s/ Louise M. Parent* Director
Louise M. Parent
/s/ Carl Platou* Director
Carl Platou
/s/ Gordon H. Ritz* Director
Gordon H. Ritz
/s/ Michael R. Woodward* Director
Michael R. Woodward
*Signed pursuant to Power of Attorney dated April 16, 1996 and is
filed electronically herewith as Exhibit No. 7(d) to Registrant's
Registration Statement No. 33-15290.
By: ________________________________
Mary Ellyn Minenko
<PAGE>
PAGE 1
IDS Life of New York Account 8
Registration No. 33-15290
EXHIBIT INDEX
3. Financial Statement Schedules
5. Financial Data Schedule
a. IDS Life of New York Insurance Company
b. IDS Life of New York Account 8
6. Opinion of Tracy A. Anderson
7. b. Written consent of Tracy A. Anderson
c. Written consent of Ernst & Young
d. Director's Power of Attorney
<PAGE>
PAGE 1
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE I - SUMMARY OF INVESTMENTS
OTHER THAN INVESTMENTS IN RELATED PARTIES ($ thousands)
AS OF DECEMBER 31, 1995
Column A Column B Column C Column D
Amount at which
Type of Investment Cost Value shown in the
balance sheet
<S> <C> <C> <C>
Fixed maturities:
Held to maturity:
United States Government and
government agencies and
authorities (a) $ 19,863 $ 19,914 $ 19,863
States, municipalities and
political subdivisions 150 148 150
All other corporate bonds 622,567 663,085 622,567
Total held to maturity 642,580 683,147 642,580
Available for sale:
United States Government and
government agencies and
authorities (b) 145,261 148,087 148,087
States, municipalities and
political subdivisions 105 115 115
All other corporate bonds 431,703 453,096 453,096
Total available for sale 577,069 $601,298 601,298
Mortgage loans on real estate 158,730 XXXXXXXXXX 158,730
Policy loans 18,035 XXXXXXXXXX 18,035
Other investments 1,915 1,915
Total investments $1,398,329 XXXXXXXXXX $1,422,558
(a) - Includes mortgage-backed securities with a cost and market value of $14,860 and $14,712,
respectively.
(b) - Includes mortgage-backed securities with a cost and market value of $145,261 and $148,087,
respectively.
</TABLE>
<PAGE>
PAGE 2
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1995
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 65,283 $1,109,167 $ - $2,222 $ -
Life, DI and
Long--term Care
Insurance 44,517 178,952 - 1,422 9,280
Total $109,800 $1,288,119 $ - $3,644 $9,280
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
Annuities $ 95,323 $ 171 $ 9,138 $6,908 N/A
Life, DI and
Long--term Care
Insurance 15,601 9,689 3,947 566 N/A
Total $110,924 $ 9,860 $13,085 $7,474 N/A
</TABLE>
<PAGE>
PAGE 3
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1994
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 61,442 $1,087,367 $ - $1,348 $ -
Life, DI and
Long-term Care
Insurance 38,636 168,417 - 1,869 7,846
Total $100,078 $1,255,784 $ - $3,217 $7,846
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
Annuities $ 92,583 $ 81 $ 9,392 $4,765 N/A
Life, DI and
Long-term Care
Insurance 15,560 10,214 3,602 3,594 N/A
Total $108,143 $ 10,295 $12,994 $8,359 N/A
</TABLE>
<PAGE>
PAGE 4
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION ($ thousands)
FOR THE YEAR ENDED DECEMBER 31, 1993
Column A Column B Column C Column D Column E Column F
Segment Deferred Future Unearned Other policy Premium
policy policy premiums claims and revenue
acquisition benefits, benefits
cost losses, payable
claims and
loss
expenses
<S> <C> <C> <C> <C> <C>
Annuities $ 53,300 $1,059,005 $ - $1,707 $ -
Life, DI and
Long-term Care
Insurance 34,591 160,962 - 640 7,110
Total $ 87,891 $1,219,967 $ - $2,347 $7,110
Column A Column G Column H Column I Column J Column K
Segment Net Benefits, Amortization Other Premiums
investment claims, of deferred operating written
income losses and policy expenses
settlement acquisition
expenses costs
Annuities $ 93,943 $ 103 $ 7,707 $4,459 N/A
Life, DI and
Long-term Care
Insurance 16,204 6,733 2,727 3,193 N/A
Total $110,147 $ 6,836 $10,434 $7,652 N/A
</TABLE>
<PAGE>
PAGE 5
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV - REINSURANCE ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
Column A Column B Column C Column D Column E Column F
Gross amount Ceded to other Assumed from Net % of amount
companies other companies Amount assumed to net
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1995
Life insurance
in force $3,110,745 $163,462 $392,106 $3,339,389 11.74%
Premiums:
Life insurance
& annuities $ 2,327 $ 185 $ -- $ 2,142 0.00%
DI & long-term care
insurance 7,221 83 -- 7,138 0.00%
Total premiums $ 9,548 $ 268 $ 0 $ 9,280 0.00%
For the year ended
December 31, 1994
Life insurance
in force $3,602,888 $162,956 $447,317 $3,887,249 11.51%
Premiums:
Life insurance
& annuities $ 2,219 $ 209 $ -- $ 2,010 0.00%
DI & long--term care
insurance 5,919 83 -- 5,836 0.00%
Total premiums $ 8,138 $ 292 $ 0 $ 7,846 0.00%
For the year ended
December 31, 1993
Life insurance
in force $2,933,830 $172,973 $512,555 $3,273,412 15.66%
Premiums:
Life insurance
& annuities $ 2,250 $ 187 $ -- $ 2,063 0.00%
DI & long--term care
insurance 5,140 93 -- 5,047 0.00%
Total premiums $ 7,390 $ 280 $ 0 $ 7,110 0.00%
</TABLE>
<PAGE>
PAGE 6
<TABLE>
<CAPTION>
IDS LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS ($ thousands)
FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
Column A Column B Column C Column D Column E
Additions
--------------
Balance at Charged to
Description Beginning Charged to Other Accounts- Deductions- Balance at End
of Period Costs & Expenses Describe Describe of Period
<S> <C> <C> <C> <C> <C>
For the year ended
December 31, 1995
- ------------------------------
Reserve for
Mortgage Loans $ 445 $ 0 $0 $0 $ 445
Reserve for
Fixed Maturities $ 0 $ 26 $0 $0 $ 26
For the year ended
December 31, 1994
- ------------------------------
Reserve for
Mortgage Loans $ 445 $ 0 $0 $0 $ 445
Reserve for
Fixed Maturities $1,652 $(1,652) $0 $0 $ 0
For the year ended
December 31, 1993
- ------------------------------
Reserve for
Mortgage Loans $ 500 $ (55) $0 $0 $ 445
Reserve for
Fixed Maturities $1,159 $ 493 $0 $0 $1,652
</TABLE>
<PAGE>
PAGE 7
Report of Independent Auditors
The Board of Directors
IDS Life Insurance Company of New York
We have audited the financial statements of IDS Life Insurance
Company of New York (a wholly owned subsidiary of IDS Life
Insurance Company) as of December 31, 1995 and 1994, and for each
of the three years in the period ended December 31, 1995, and have
issued our report thereon dated February 2, 1996 (included
elsewhere in this Registration Statement).
Our audits also included the financial statement schedules listed
in Item 3 of this Registration Statement. These schedules are the
responsibility of the Company's management. Our responsibility is
to express an opinion based on our audits.
In our opinion, the financial statement schedules referred to
above, when considered in relation to the basic financial
statements taken as a whole, present fairly, in all material
respects, the information set forth therein.
Ernst & Young LLP
Minneapolis, Minnesota
February 2, 1996
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 7
<LEGEND>
<CIK>
<NAME> IDS Life Insurance Company of New York
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLAR
<FISCAL-YEAR-END> DEC-31-1995 DEC-31-1994
<PERIOD-START> JAN-01-1995 JAN-01-1994
<PERIOD-END> DEC-31-1995 DEC-31-1994
<PERIOD-TYPE> YEAR YEAR
<EXCHANGE-RATE> 1 1
<DEBT-HELD-FOR-SALE> 601298 455103
<DEBT-CARRYING-VALUE> 642580 686483
<DEBT-MARKET-VALUE> 683147 653080
<EQUITIES> 10 135
<MORTGAGE> 158730 164916
<REAL-ESTATE 0 0
<TOTAL-INVEST> 1422558 1322925
<CASH> 0 5262
<RECOVER-REINSURE> 40 3
<DEFERRED-ACQUISITION> 109800 100078
<TOTAL-ASSETS> 2281250 1957574
<POLICY-LOSSES> 1288119 1255784
<UNEARNED-PREMIUMS> 0 0
<POLICY-OTHER> 0 0
<POLICY-HOLDER-FUNDS> 3644 3217
<NOTES-PAYABLE> 0 0
<COMMON> 2000 2000
0 0
0 0
<OTHER-SE> 216583 169721
<TOTAL-LIABILITY-AND-EQUITY> 2281250 1957574
9280 7846
<INVESTMENT-INCOME> 110924 108143
<INVESTMENT-GAINS> 1548 957
<OTHER-INCOME> 19429 16170
<BENEFITS> 78490 75313
<UNDERWRITING-AMORTIZATION> 13085 12994
<UNDERWRITING-OTHER> 7474 8359
<INCOME-PRETAX> 42132 36449
<INCOME-TAX> 14745 12794
<INCOME-CONTINUING> 27387 23655
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 27387 23655
<EPS-PRIMARY> 0 0
<EPS-DILUTED> 0 0
<RESERVE-OPEN> 1702 450
<PROVISION-CURRENT> 7902 9789
<PROVISION-PRIOR> 0 0
<PAYMENTS-CURRENT> 8462 8537
<PAYMENTS-PRIOR> 0 0
<RESERVE-CLOSE> 1142 1702
<CUMULATIVE-DEFICIENCY> 0 0
<PAGE>
<ARTICLE> 6
<CIK>
<NAME> IDS Life of New York Account 8
[SERIES]
<NAME>
[NUMBER]
<MULTIPLIER> 1
<CURRENCY> U.S. DOLLAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<PERIOD-TYPE> YEAR
<EXCHANGE-RATE> 1
[INVESTMENTS-AT-COST] 35864312
[INVESTMENTS-AT-VALUE] 44324951
[RECEIVABLES] 76542
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 44401493
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] (284961)
[TOTAL-LIABILITIES] (284961)
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 0
[SHARES-COMMON-STOCK] 17586754
[SHARES-COMMON-PRIOR] 14635597
[ACCUMULATED-NII-CURRENT] 0
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 0
<OVERDISTRIBUTIONS-GAINS> 0
[ACCUM-APPREC-OR-DEPREC] 0
[NET-ASSETS] 44116532
[DIVIDEND-INCOME] 1353922
[INTEREST-INCOME] 0
[OTHER-INCOME] 0
[EXPENSES-NET] (335505)
[NET-INVESTMENT-INCOME] 1018417
[REALIZED-GAINS-CURRENT] 219834
[APPREC-INCREASE-CURRENT] 7388098
[NET-CHANGE-FROM-OPS] 8626349
[EQUALIZATION] 0
<DISTRIBUTION-OF-INCOME> 0
<DISTRIBUTION-OF-GAINS> 0
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 5305907
<NUMBER-OF-SHARES-REDEEMDED> (2354750)
[SHARES-REINVESTED] 0
[NET-CHANGE-IN-ASSETS] 14510023
[ACCUMULATED-NII-PRIOR] 0
[ACCUMULATED-GAINS-PRIOR] 0
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 0
[INTEREST-EXPENSE] 0
[GROSS-EXPENSE] (335505)
[AVERAGE-NET-ASSETS] 36861520
<PAGE>
[PER-SHARE-NAV-BEGIN] 0
[PER-SHARE-NII] 0
[PER-SHARE-GAIN-APPREC] 0
[PER-SHARE-DISTRIBUTIONS] 0
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 0
[EXPENSE-RATIO] 0
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
<PAGE>
PAGE 1
April 17, 1996
IDS Life Insurance Company of New York
20 Madison Avenue Extension
Albany, New York 12203
Gentlemen:
This opinion is furnished in connection with post-effective
Amendment No. 14 to the registration by IDS Life Insurance Company
of New York of a Flexible Premium Variable Life Insurance Policy
("the Policy") under the Securities Act of 1933, File #33-15290.
The prospectus included on Form S-6 in the post-effective amendment
to the registration statement describes the Policy. I am familiar
with the Policy, the post-effective amendment, the registration
statement and the exhibits thereto. In my opinion, the
illustrations of Death Benefits, Policy Values, and Surrender
Values included in the section of the prospectus entitled
"Illustrations", under the assumptions stated in that section, are
consistent with the provisions of the Policy.
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 this prospectus.
Very truly yours,
/s/ Tracy A. Anderson
Tracy A. Anderson
Qualified Actuary
<PAGE>
PAGE 1
CONSENT OF ACTUARY
The Board of Directors
IDS Life Insurance Company of New York
I consent to the reference to me under the caption "Experts" and to
the use of my opinion dated April 17, 1996 on the Illustrations
used by IDS Life Insurance Company of New York in the Prospectus
for the Flexible Premium Variable Life Insurance Policy offered by
IDS Life Insurance Company of New York as part of post-effective
Amendment #14 to the Registration Statement being filed under the
Securities Act of 1933.
/s/ Tracy A. Anderson
Tracy A. Anderson
Qualified Actuary
Albany, New York
April 17, 1996
<PAGE>
PAGE 14
CONSENT OF INDEPENDENT AUDITORS
We consent to the reference to our firm under the caption "Experts"
and to the use of our reports dated February 2, 1996 on the
financial statements and schedules of IDS Life Insurance Company of
New York and our report dated March 15, 1996 on the financial
statements of IDS Life of New York Account 8 for Flexible Premium
Variable Life Insurance in Post Effective Amendment No. 14 to the
Registration Statement (Form S-6, No. 33-15290) for the
registration of the IDS Life of New York Account 8 for Flexible
Premium Variable Life Insurance to be offered by IDS Life Insurance
Company of New York.
Ernst & Young LLP
Minneapolis, Minnesota
April 26, 1996
<PAGE>
PAGE 1
IDS LIFE INSURANCE COMPANY OF NEW YORK
POWER OF ATTORNEY
City of Albany
State of New York
Each of the undersigned, as officers and/or directors of the
below listed unit investment trusts that previously have filed
registration statements and amendments thereto pursuant to the
requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 with the Securities and Exchange Commission:
1933 Act 1940 Act
Reg. Number Reg. Number
IDS Life of New York 4, 5, 6, 9, 10,
11, 12, 13 and 14
IDS Life of New York Employee Benefit
Annuity 33-52567 811-3500
IDS Life of New York 4, 5, 6, 9, 10,
11, 12, 13 and 14
IDS Life of New York Flexible Annuity 33-4174 811-3500
IDS Life of New York 4, 5, 6, 9, 10,
11, 12, 13 and 14
IDS Life of New York Variable
Retirement and Combination Retirement
Annuity 2-78194 811-3500
IDS Life of New York Account 8
Flexible Premium Variable Life
Insurance Policy 33-15290 811-5213
IDS Life of New York Account SBS
IDS Life Symphony Annuity 33-45776 811-6560
IDS Life of New York Account 7
Single Premium Variable Life
Insurance Policy 33-10334 811-4913
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn
Minenko, Eileen J. Newhouse and Timothy S. Meehan or any one of
them, as her or his attorney-in-fact and agent, to sign for her or
him in her or his name, place and stead any and all filings,
applications (including applications for exemptive relief),
periodic reports, registration statements (with all exhibits and
other documents required or desirable in connection therewith)
other documents, and amendments thereto and to file such filings,
applications, periodic reports, registration statements other
documents, and amendments thereto with the Securities and Exchange
Commission, and any necessary states, and grants to any or all of
them the full power and authority to do and perform each and every
act required or necessary in connection therewith.
<PAGE>
PAGE 2
Dated the 16th day of April, 1996.
/s/ John C. Boeder /s/ Michael P. Monaco
John C. Boeder Michael P. Monaco
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
/s/ Charles A. Cuccinello /s/ Louise M. Parent
Charles A. Cuccinello Louise M. Parent
/s/ Milton R. Fenster /s/ Carl N. Platou
Milton R. Fenster Carl N. Platou
/s/ Robert A. Hatton /s/ Gordon H. Ritz
Robert A. Hatton Gordon H. Ritz
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
/s/ Edward Landes
Edward Landes
