SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Amendment No. 4
FORM N-8B-2
REGISTRATION STATEMENT OF UNIT INVESTMENT TRUSTS
WHICH ARE CURRENTLY ISSUING SECURITIES
Pursuant to Section 8(b) of the Investment
Company Act of 1940
IDS Life of New York Account 8
Issuer of Periodic Payment Plan Certificates
C/O IDS Life Insurance Company of New York
20 Madison Avenue Ext.
Albany, NY 12203
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I.
ORGANIZATION AND GENERAL INFORMATION
1. (a) Furnish name of the trust and Internal Revenue Service
Employer Identification Number.
IDS Life of New York Account 8 (Hereinafter called "the
Variable Account")
The Variable Account does not have an IRS Employer
Identification Number.
(b) Furnish title of each class or series of securities issued by
the trust.
Flexible Premium Variable Life Insurance Policy. ("Policy 1")
Flexible Premium Variable Survivorship Life Insurance Policy
("Policy 2")
2. Furnish name and principal business address and zip code and the
Internal Revenue Service Employer Identification Number of each
depositor of the trust.
IDS Life Insurance Company of New York ("IDS Life of New York") 20
Madison Avenue Extension, Albany, NY 12203 IRS Employer #41-0987741
3. Furnish name and principal business address and zip code and the
Internal Revenue Service Employer Identification Number of each
custodian or trustee of the trust indicating for which class or series
of securities each custodian or trustee is acting.
Not applicable.
4. Furnish name and principal business address and zip code and the
Internal Revenue Service Employer Identification Number of each
principal underwriter currently distributing securities of the trust.
American Express Financial Advisors, Inc., IDS Tower 10, Minneapolis,
MN 55440, IRS Employer #41-0973005.
5. Furnish name of state or other sovereign power, the laws of which
govern with respect to the organization of the trust.
New York
6. (a) Furnish the dates of execution and termination of any
indenture or agreement currently in effect under the terms of
which the trust was organized and issued or proposes to
issue securities.
The Variable Account was established as a separate account of
IDS Life of New York pursuant to a resolution of the Board of
Directors of IDS Life of New York adopted on September 12,
1985.
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The Variable Account will continue in existence until its
complete liquidation and the distribution of its assets to the
persons entitled to receive them.
(b) Furnish the dates of execution and termination of any
indenture or agreement currently in effect pursuant to which
the proceeds of payments on securities issued or to be issued
by the trust are held by the custodian or trustee.
There is no separate Custodian Agreement. The assets of the
Variable Account will be held by IDS Life of New York as a
separate account for the exclusive benefit of Owners having an
interest therein.
7. Furnish in chronological order the following information with respect
to each change of name of the trust since January 1, 1930. If the name
has never been changed, so state.
The name of the Variable Account has never been changed.
8. State the date on which the fiscal year of the trust ends.
The fiscal year of the Variable Account ends December 31.
Material Litigation
9. Furnish a description of any pending legal proceedings, material with
respect to the security holders of the trust by reason of the nature of the
claim or the amount thereof, to which the trust, the depositor, or the
principal underwriter is a party or of which the assets of the trust are
the subject, including the substance of the claims involved in such
proceedings and the title of the proceeding. Furnish a similar statement
with respect to any pending administrative proceeding commenced by a
governmental authority or any such proceeding or legal proceeding known to
be contemplated by a governmental authority. Include any proceeding which,
although immaterial itself, is representative of, or one of, a group which
in the aggregate is material.
There are no material legal proceedings to which the Variable Account
is subject. IDS Life of New York is engaged in various kinds of routine
litigation that, in IDS Life of New York's judgment, are not of
material importance in relation to its assets. None of such litigation
relates to the Variable Account.
II.
GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
General Information Concerning the Securities of the
Trust and the Rights of Holders
10. Furnish a brief statement with respect to the following matters for each
class or series of securities issued by the trust
(a) Whether the securities are of the registered or bearer type.
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The Policies are of the registered type insofar as each Policy
is personal to the Owner, the records concerning the Owner are
maintained by IDS Life of New York, and ownership cannot be
transferred except upon notice to IDS Life of New York.
(b) Whether the securities are of the cumulative or distributive
type.
The Policies are of the cumulative type, providing for no
distribution of income, dividends or capital gain, except in
connection with surrender or payment of proceeds upon the
death of the Insured. The Policy is non-participating.
(c) The rights of security holders with respect to withdrawal or
redemption.
Policy 1
The Policy may be returned for a full refund of the premiums
paid, for any reason, if it is returned by the Owner to IDS
Life of New York or its representative, with a written request
for cancellation, by the latest of: (a) the 10th day after it
is received by the Owner; or by the 10th day after IDS Life of
New York mails or personally delivers a written notice of
withdrawal right; or c) the 45th day after the application is
signed. Immediately on such mailing or delivery, the Policy
will be considered void from the start.
The Policy may be totally surrendered for its cash surrender
value. This is the Policy Value less indebtedness and less any
applicable surrender charges.
The Owner may surrender the policy in whole or in part subject
to the following rules. A request for surrender may be made in
writing by the owner to IDS Life of New York at its home
office. The Owner also may request a partial surrender by
calling IDS Life of New York. IDS Life of New York has the
authority to honor any telephone surrender request believed to
be authentic. IDS Life of New York is not responsible for
determining the authenticity of such calls. A surrender
request received before 4 p.m. Eastern time will be processed
the same day. If the call or written request is received after
4 p.m., the request will be processed the following business
day. IDS Life of New York may require that the Policy be
returned to it. IDS Life of New York will compute the cash
surrender value of the Variable Account as of the end of the
valuation period during which the surrender request is
received at its home office.
The cash surrender value will be paid within seven days after the
Owner's written request is received by IDS Life of New York at
its home office, however IDS Life of New York reserves the right
to defer any payment of cash surrender value (1) which derives
from a premium payment made by a check which has not cleared the
banking system (good payment has not been collected), or (2) if
(a) the New York Stock Exchange is closed (other than customary
weekend and holiday closings), (b) trading on the Exchange is
restricted; (c) an emergency exists such that it is not
reasonably practical to dispose of securities held in the
Variable Account or to determine the value of the Variable
Account's net assets; or (d) the SEC by order so permits for the
protection of security holders. Conditions
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described in (b) and (c) will be decided by or in accordance
with rules of the SEC. Any excess of the cash surrender value
plus policy loans over the premiums paid, would, upon
surrender, generally be taxable to the Owner. Any surrenders
of the policy value from the Fixed Account may be postponed
for up to 6 months. If IDS Life of New York postpones payment
more than 30 days, interest at an annual rate of 4 percent
will be paid on the amount surrendered for the period of
postponement.
During the first 10 policy years and during the first 10 years
following any requested increase in Specified Amount, IDS Life
of New York will make a Surrender Charge if the Owner
surrenders the Policy or the Policy lapses. The Surrender
Charge has two parts - the Contingent Deferred Issue and
Administrative Expense Charge and The Contingent Deferred
Sales Charge.
The maximum Contingent Deferred Sales Charge and the maximum
Contingent Deferred Issue and Administrative Expense Charge
for the Initial Specified Amount or any requested increase in
Specified Amount will be determined on the Policy Date or on
the effective date of any such requested increase, as the case
may be. In general, these maximum charges remain level for the
first five years in the relevant 10-year period, and then
reduce in equal monthly increments until they become zero at
the end of 10 years.
Policy 2
The Policy may be returned for any reason, and the owner will
receive a full refund of all premiums paid. To do so, the
owner must mail or deliver the policy to IDS Life of New York
or their financial advisor, with a written request for
cancellation, by the latest of:
o the 10th day after they have received it;
o the 10th day after IDS Life of New York mails or
personally delivers a written notice; or
o the 45th day after they sign the application.
On the date the request is postmarked or received, the policy
will immediately be considered void from the start.
If the owner surrenders the policy or the policy lapses during
the first 15 policy years, a surrender charge will be
assessed. The surrender charge is a contingent deferred issue
and administration expense charge. It reimburses IDS Life of
New York for costs of issuing the policy, such as processing
the application (primarily underwriting) and setting up
computer records. 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 15 policy years.
If the owner surrenders part of the value of their policy,
they will be charged $25 (or 2% of the amount surrendered, if
less). This fee is guaranteed not to increase for the duration
of the policy.
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The owner may surrender the policy in full or in part by
written or telephone request. 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. IDS Life of New York may require the
owner to return the policy.
IDS Life of New York will normally process the payment within
seven days; however, it reserves the right to defer payment.
IDS Life of New York reserves the right to defer payments of
cash surrender value, policy loans, or variable death benefits
in excess of the specified amount if:
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 IDS
Life of New York postpones the payment of surrender proceeds
more than 30 days, it will pay the owner interest on the
amount surrendered at an annual rate of 4% for the period of
postponement.
Total surrenders: If the owner surrenders the policy totally,
they will receive its cash surrender value - the policy value
minus outstanding indebtedness and applicable surrender
charges. IDS Life of New York will compute the value of each
subaccount as of the end of the valuation period during which
the owner's request is received.
(d) The rights of security holders with respect to conversion,
transfer, partial redemption and similar matters.
Policy 1
By written request, or other requests acceptable to IDS Life
of New York, the Owner may transfer all or part of the value
of a subaccount to one or more of the other subaccounts or to
the fixed account. The amount transferred, however, must be at
least 1) $250; or 2) the total value in the subaccount, if
less. Only five such transfers may be made in a policy year.
This limitation does not include automatic reallocations of
Trust values. Except as discussed in the following paragraph,
each such transfer will be made without the imposition of any
fee or charge, as of the end of the valuation period during
which IDS Life of New York receives a valid complete transfer
request. IDS Life of New York may suspend or modify this
transfer privilege at any time with any necessary approval of
the Securities and Exchange Commission.
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The Owner may also transfer from the fixed account to the
subaccounts once a year but only on the policy anniversary or
within 30 days after such policy anniversary. If the Owner
makes this transfer, he or she cannot transfer from the
subaccounts back into the fixed account until the next policy
anniversary. IDS Life of New York will waive this limitation
once during the first two policy years if the Owner exercises
the policy's Right to Exchange provision. If IDS Life of New
York receives a written request within 30 days before the
policy anniversary date, the transfer from the Fixed Account
to the subaccounts will be effective on the anniversary date.
If IDS Life of New York receives a written request within 30
days after the policy anniversary date, the transfer from the
Fixed Account to the subaccounts will be effective on the date
IDS Life of New York receives the request. The minimum
transfer amount is $250 or the Fixed Account value less
indebtedness, if less. The maximum transfer amount is the
Fixed Account value, less indebtedness. This transfer
privilege may be suspended or modified by IDS Life of New York
at any time.
The Owner also may request a transfer by calling IDS Life of
New York. IDS Life of New York has the authority to honor any
telephone transfer request believed to be authentic. IDS Life
of New York is not responsible for determining the
authenticity of such calls.
A transfer request received before 4 p.m. Eastern time will be
processed the same day. If a call or written request is
received after 4 p.m. Eastern time, the request will be
processed the following business day.
After the first policy year, the Owner may also request to
surrender up to 85 percent of the Policy's Cash surrender
Value. A fee of $25.00 is assessed for each partial surrender.
However, the fee will not exceed 2 percent of the amount
surrendered. This charge is guaranteed not to increase for the
duration of the Policy. The amount of any partial surrender
must be at least $500.00. Partial surrenders by telephone are
limited to $25,000.
Unless the Owner specifies a different allocation, IDS Life of
New York will make partial surrenders from the Fixed Account
and the subaccounts of the Variable Account on a proportionate
basis based upon the policy value. These proportions will be
determined at the end of the valuation period during which a
request is received. For purposes of determining these
proportions, any outstanding loan amount is first subtracted
from the Fixed Account value.
The Policy Value will be reduced by the amount of any partial
surrender and partial surrender fee. The Death Benefit will
also be reduced by the amount of the partial surrender and
partial surrender 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.
If Option 1 is in effect, the Specified Amount will be reduced
by the amount of the partial surrender and partial surrender
fee. When increases in the Specified Amount have occurred
previously, IDS Life of New York will reduce the current
Specified Amount by the amount of the partial surrender in the
following order:
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(a) the Specified Amount provided by the most recent
increase;
(b) the next most recent increases successively; and
(c) the Specified Amount when the policy was issued.
Thus, partial surrenders may affect the way in which the cost
of insurance is calculated and the net amount at risk under
the Policy.
IDS Life of New York does not allow a partial surrender if the
Specified Amount after a partial surrender would be less than
the Minimum Specified Amount.
If Option 2 is in effect, a partial surrender does not affect
the Specified Amount.
A partial surrender may also cause the termination of the
Death Benefit Guarantee because the amount of the partial
surrender is deducted from the total premiums paid in
calculating whether sufficient premiums have been paid in
order to maintain the Death Benefit Guarantee.
During the first two years after the Policy has been issued,
the Owner has the right on one occasion to exchange the Policy
for a Flexible Premium Adjustable Whole Life Policy which
provides for benefits that do not vary with the investment
return of the Variable Account. This will be accomplished by
transferring all of the Policy Value in the Variable Account
to the Fixed Account.
If at any time during the first two policy years the Owner
requests a transfer from the Variable Account to the Fixed
Account and indicates that the transfer is in exercise of this
conversion right, the transfer will not count against the
five-transfers-per-year limit. Also, any restrictions which
may exist on transfers into the Fixed Account will be waived
for this one time, if the Owner is exercising the conversion
right. At the time of such transfer, there is no effect on the
Policy's Death Benefit, Specified Amount, net amount at risk,
Rate Class(es) or issue age only the method of funding the
policy value under the Policy will be affected.
If the Owner transfers all of the values in the Variable
Account to the Fixed Account and indicates that this transfer
is in exercise of this conversion right, IDS Life of New York
will automatically credit all future premium payments on the
Policy to the Fixed Account unless the Owner requests a
different allocation.
Policy 2
Partial surrenders: After the first policy year, the owner may
surrender any amount from $500 up to 85% of the policy's cash
surrender value. (Partial surrenders by telephone are limited
to $50,000.) The owner will be charged a partial surrender fee
of $25 (or 2% of the amount surrendered if less).
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Allocation of partial surrenders: Unless the owner specifies
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 the
request is received. In determining these proportions, IDS
Life of New York first subtracts the amount of any outstanding
indebtedness from the fixed account value.
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 to age 100 (DBG-100). The surrender amount is
deducted from total premiums paid, which may reduce the
total below the level required to keep the DBG-100 in
effect.
o If Option 1 is in effect, the specified amount will be
reduced by the amount of the partial surrender and fee.
Because the specified amount is reduced, 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.
o If Option 2 is in effect, a partial surrender does not
affect the specified amount.
Transfers between the fixed account and subaccounts
The owner may transfer policy values from one subaccount to
another or between subaccounts and the fixed account. For most
transfers, if IDS Life of New York receives the request before
the close of business, it 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, the owner should consider the risks
involved in switching investments.
IDS Life of New York may suspend or modify the transfer
privilege at any time with the necessary approval of the SEC
and the New York Superintendent of Insurance. 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.
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o If IDS Life of New York receives the 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 IDS Life of New York receives the request on or within
30 days after the policy anniversary, the transfer will be
effective on the day we receive it.
o IDS Life of New York will not accept requests for
transfers from the fixed account at any other time.
o If the owner has made a transfer from the fixed account to
one or more subaccounts, they may not make a transfer from
any subaccount back to the fixed account until the next
policy anniversary. IDS Life of New York will waive this
limitation once during the first two policy years if the
owner exercises the policy's right to exchange provision.
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
IDS Life of New York reserves the right to limit mail and
telephone transfers to twelve per policy year. Twelve
automated transfers per policy year are allowed.
Two ways to request a transfer, loan or surrender
The owner should provide their name, policy number, Social
Security Number or Taxpayer Identification Number when they
request a transfer, loan or partial surrender.
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1 By Letter
Regular Mail:
IDS Life of New York
P. O. Box 5144
Albany, NY 12205
Express mail
IDS Life of New York
20 Madison Avenue 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 IDS Life of New York answers phone requests promptly, but
the owner may experience delays when call volume is
unusually high. If the owner is unable to get through, use
mail procedure as an alternative.
o IDS Life of New York will honor any telephone transfer,
loan or partial surrender requests believed to be
authentic and will use reasonable procedures to confirm
that they are. They include asking identifying questions
and tape recording calls. As long as the 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, loans and partial surrenders are
automatically available. The owner may request that
telephone transfers, loans and partial surrenders not be
authorized from their account by writing IDS Life of New
York.
Automated transfers
In addition to written and phone requests, the owner can
arrange to have policy value transferred from one account to
another automatically. Their financial advisor can help them
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.
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o The owner can start or stop this service by written
request. They must allow seven days for us to change any
instructions that are currently in place.
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 the owner has made a transfer from the fixed account to
one or more subaccounts, they may not make a transfer from
the subaccount back to the fixed account until the next
policy anniversary.
o If the owner's 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
The owner can use automated transfers to take advantage of
dollar-cost averaging investing a fixed amount at regular
intervals. For example, the owner 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 the owner benefit from
fluctuations in accumulation unit value, caused by
fluctuations in the market value(s) of the underlying fund.
Since the owner invests the same amount each period, they
automatically acquire more units when the market value falls,
fewer units when it rises. The potential effect is to lower
the average cost per unit.
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. Because this strategy involves
continuous investing, the owner's success will depend upon
their willingness to continue to invest regularly through
periods of low price levels. Dollar-cost averaging can be an
effective strategy to help meet long-term goals.
Exchange right
For two years after the policy is issued, the owner 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 the owner
needs to do is transfer all of the policy value in the
subaccounts to the fixed account. IDS Life of New York will
automatically credit all future premium payments to the fixed
account unless the owner requests a different allocation.
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Such transfer will not count against the
twelve-transfers-per-year limit. Also, any restrictions on
transfers into the fixed account will be waived.
There will be no effect on the policy's death benefit,
specified amount, net amount at risk, risk classification(s)
or issue age. Only the method of funding the policy value will
be affected.
(e) If the trust is the issuer of periodic payment plan
certificates, the substance of the provisions of any indenture
or agreement with respect to lapses or defaults by security
holders in making principal payments, and with respect to
reinstatement.
Policy 1
If, on a monthly date, the Cash Surrender Value is less than
the monthly deduction for the next month, a grace period of 61
days will begin. IDS Life of New York will mail, to the
Owner's last known address, a notice as to the premium needed,
so that the estimated Cash Surrender Value will be sufficient
to cover the next three monthly deductions. If IDS Life of New
York receives payment of this amount before the end of the
grace period, the amount will be used 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 the premium is not being
continued under the Death Benefit Guarantee provision
described below, all coverage under the policy will terminate
without value at the end of the 61-day grace period.
If a claim by death during the grace period becomes payable
under the policy, any overdue monthly deductions will be
deducted from the proceeds.
Until the insured's attained age 65, or five years from the
policy date, whichever is later, the policy will not terminate
even if the cash surrender value is insufficient to cover the
monthly deduction on a monthly date if (a) equals or exceeds
(b) where:
(a) is the sum of all premiums paid, minus any partial
surrenders, and minus any indebtedness; and
(b)is the minimum monthly premium, as shown under Policy
Date in the Policy, times the number of months since the
Policy Date, including the current month.
Minimum monthly premiums may be paid on other than a monthly
basis as long as the sum of premiums paid is at least equal to
the total required Minimum Monthly Premiums at all times.
If on a monthly date, sufficient premiums have not been paid
to maintain the Death Benefit Guarantee, an additional period
of 61 days will be allowed for the payment of a premium
sufficient to pay the required minimum monthly premiums.
Notice of such premium will be mailed to the Owner's last
known address. If the premium is not paid within this period,
the death benefit guarantee provision will no longer be in
effect and cannot be reinstated.
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The minimum monthly premium will change if the specified
amount is increased or decreased or if riders are added,
changed or terminated. The new minimum monthly premium will
apply from the date of the change.
A death benefit guarantee charge is included in the monthly
deduction in the first five policy years or until the
insured's attained age 65, whichever is later. The charge will
not be taken if, as described above, the death benefit
guarantee provision is no longer in effect.
For any month that the monthly deduction is being paid for by
a Waiver of Monthly Deduction Rider attached to the policy,
the minimum monthly premium for that month will be zero.
The policy may be reinstated within five years after the end
of the grace period, unless it was surrendered for cash. To do
this, IDS Life of New York will require all of the following:
1. a written request to reinstate the policy;
2. evidence of insurability of the insured satisfactory to
IDS Life of New York;
3. payment of a premium that will keep the policy in force
for at least 3 months;
4. payment of the monthly deductions that were not
collected during the grace period;
5. payment or reinstatement of any indebtedness.
Surrender charges will also be reinstated.
The effective date of a reinstated policy will be the monthly
date on or next following the day IDS Life of New York
approves the application for reinstatement.
The suicide and incontestability periods will apply from the
effective date of reinstatement. 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 2
Keeping the policy in force
This section includes a description of the policy provisions
that determine if the policy will remain in force or lapse
(terminate). It is important that the owner understands them
so the appropriate premium payments are made to ensure that
insurance coverage meets their objectives.
If the owner wishes to have a guarantee that the policy will
remain in force until the youngest insured's attained
insurance age 100 regardless of investment performance, they
should pay at least the DBG-100 premiums.
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If the owner wishes to pay yet a lower premium and is not
concerned with a long-term guarantee that the policy will
remain in force regardless of investment performance, they can
pay premiums so that the cash surrender value on each monthly
date is sufficient to pay the monthly deduction. However,
during the minimum initial premium period, they must pay at
least the initial premium until the policy value is greater
than the surrender charge and the cash surrender value is
sufficient to pay the monthly deduction.
Death benefit guarantee to age 100
The DBG-100 provides that the owner's policy will remain in
force until the youngest insured's attained insurance age 100
even if the cash surrender value is insufficient to pay the
monthly deduction. The DBG-100 will remain in effect, as long
as:
the sum of premiums paid minus partial surrenders minus
outstanding indebtedness
equals or exceeds
the DBG-100 premiums due since the policy date.
The DBG-100 premium is shown in the policy.
If, on a monthly date, they have not paid enough premiums to
keep the DBG-100 in effect, an additional period of 61 days
will be allowed for the owner to pay a premium sufficient to
bring their total up to the required minimum. If they do not
pay this amount within 61 days, the DBG-100 will terminate. If
they have paid sufficient premium, the DBG-100 will be in
effect. If the DBG-100 is not in effect, the policy will lapse
(terminate) if the cash surrender value is less than the
amount needed to pay the monthly deduction and the minimum
initial premium period is not in effect. Although the policy
can be reinstated as explained below, the DBG-100 cannot be
reinstated.
Minimum initial premium period
To allow the owner the opportunity to increase their policy
value gradually so that the cash surrender value is sufficient
to pay the monthly deduction, the owner may choose to pay only
the minimum initial premium during the minimum initial premium
period as long as the policy value minus indebtedness equals
or exceeds the monthly deduction. The policy will not enter
the grace period during the minimum initial premium period as
shown under Policy Date, if:
1. on a monthly date, the policy value minus indebtedness
equals or exceeds the monthly deduction for the policy
month following each monthly date; and
2. the sum of all premiums paid, minus any partial
surrenders, and minus any indebtedness equals or
exceeds the minimum initial premium, as shown under
Policy Date, times the number of months since the
Policy Date, including the current month.
<PAGE>
The minimum initial period is
4 years if the youngest insured's insurance age is
20-29 3 years if the youngest insured's insurance age
is 30-39 2 years if the youngest insured's insurance
age is 40-49 1 year if the youngest insured's
insurance age is 50 and over
Grace period
If the cash surrender value of the policy becomes less than
that needed to pay the monthly deduction and neither the
DBG-100 nor the minimum initial premium period is in effect,
the owner will have 61 days to pay the required premium
amount. If the required premium is not paid, the policy will
lapse.
IDS Life of New York will mail a notice to their last known
address, requesting payment of the premium needed so that the
next three monthly deductions can be made. If IDS Life of New
York receives this premium before the end of the 61-day grace
period, IDS Life of New York will use the payment to pay 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 a policy lapses with outstanding indebtedness, any excess
of the outstanding indebtedness over the premium paid
generally will be taxable to the owner. If the last surviving
insured dies during the grace period, any overdue monthly
deductions will be deducted from the death benefit.
Reinstatement
The owner's policy may be reinstated within five years after
it lapses, unless they 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 both
insureds remain insurable or evidence for the last
surviving insured and due proof that the first death
occurred before the date of lapse;
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
the owner's application for reinstatement. The suicide period
will apply from the effective date of reinstatement.
<PAGE>
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.
(f) The substance of any provisions of any indenture or agreement
with respect to voting rights, together with the names of any
persons other than security holders given the right to
exercise voting rights pertaining to the trust's securities or
the underlying securities and the relationship of such persons
to the trust.
Policy 1
The Variable Account is comprised of various subaccounts. The
Equity, Income, Money Market, Managed, Government Securities,
International Equity, YGI and YNO Subaccounts, as well as the
1991, 1995 and 2004 U.S. Treasury Securities Subaccounts fund
the policy. Some Subaccounts invest exclusively in the
Portfolios of IDS Life Series Fund, Inc. ("the Fund"), while
others invest in units of the Smith Barney Stripped ("Zero
Coupon") U.S. Treasury Securities Fund, Series A ("the Trust"
or "the Trusts"). The Equity Subaccount invests exclusively in
the shares of the Equity Portfolio; the Income Subaccount
invests exclusively in the shares of the Income Portfolio; the
Money Market Subaccount invests exclusively in the shares of
Money Market Portfolio; the Managed Subaccount invests
exclusively in the shares of the Managed Portfolio; the
Government Securities Subaccount invests exclusively in the
shares of the Government Securities Portfolio; and the
International Equity Subaccount invests in shares of the
International Equity Portfolio. These six portfolios make up
the IDS Life Series Fund, Inc., a series mutual fund. The YGI
Subaccount invests exclusively in shares of the Growth and
Income Fund. This fund is part of the AIM Variable Insurance
Funds, Inc., a series mutual fund. The YNO Subaccount invests
in shares of Putnam VT New Opportunities Fund. This fund is a
portfolio of Putnam Variable Trust, a series mutual fund. The
1991, 1995 and 2004 U.S. Treasury Securities Subaccounts
invest in units of the designated unit investment trust, with
maturity dates of 1991, 1995 and 2004 respectively.
All shares issued by the Fund are the same class (kind)
capital stock. They have a par value of $.001 a share. They
are fully paid and nonassessable and can be redeemed or
transferred. All shares have equal voting rights. They can be
issued as full shares or fractions. A fraction of a share has
the same kind of rights and privileges as a full share. The
Fund currently has five portfolios, each issuing 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 the election of directors, all shares of the Fund vote
together as one series. All shares have cumulative voting when
voting on the election of directors. With cumulative voting,
each shareholder is entitled to a number of votes equal to the
number of shares that the shareholder holds multiplied by the
number of directors to be elected, and has the right to divide
votes among candidates in any way. On an issue affecting a
particular portfolio, its
<PAGE>
shares vote as a separate series. An example of such an issue
would be a fundamental investment restriction pertaining to
only one portfolio. In voting on the Investment Management and
Services Agreement, approval of the Agreement by the
shareholders of a particular portfolio would make the
Agreement effective as to that portfolio, whether or not it
had been approved by the shareholders of the other portfolios.
As previously stated, all of the assets held in the
subaccounts will be invested in shares of the corresponding
portfolio or in units of the Trust. With regard to the Fund,
IDS Life of New York is the Owner of those Fund shares and as
such has the right to vote to elect the Board of Directors of
the Fund, to vote upon certain matters that are required by
the 1940 Act to be approved or ratified by the shareholders,
and to vote upon any other matter that may be voted upon at a
shareholders' meeting. However, IDS Life of New York will vote
the shares of each Fund portfolio at regular and special
meetings of the shareholders of the Fund in accordance with
instructions received from the Owners of the Policies. Fund
shares held in each subaccount for which no timely
instructions from Owners are received, and Fund shares that
are not otherwise attributable to Owners, will be voted by IDS
Life of New York in the same proportion as those shares in
that subaccount for which instructions are received. The
number of Fund shares in each subaccount for which
instructions may be given by an Owner is determined by
applying the Owner's 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 90 days before the meeting of the
Fund. Fractional votes are counted. Owners will receive notice
of each meeting of shareholders together with any proxy
solicitation materials, and a statement of the number of votes
as to which they are entitled to give directions at the
meeting.
IDS Life of New York may, if required by state insurance
officials, disregard voting instructions if such instructions
would require shares to be voted so as to cause a change in
the goals of one or more of the Funds' portfolios, or to
approve or disapprove an investment advisory contract for the
Fund. In addition, IDS Life of New York itself may disregard
voting instructions that would require changes in the
investment policy or investment adviser of one or more of the
Fund's portfolios, provided that 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 advise Owners of that
action and its reasons for such action in the next report to
Owners.
Generally, ownership of units of a unit investment trust does
not involve the exercise of voting rights. However, with
regard to the Trusts, unit holders may vote for removal of the
trustee or for the amendment or the termination of the Trust
indenture. In the event of such vote, IDS Life of New York, as
the Owner of such units, would solicit voting instructions
from Owners under the same procedures set forth above
regarding the holders of Fund shares.
<PAGE>
Policy 2
The Variable Account is comprised of various subaccounts. The
Equity, Income, Money Market, Managed, Government Securities,
International Equity, YGI and YNO Subaccounts. Some
Subaccounts invest exclusively in the Portfolios of IDS Life
Series Fund, Inc ("the Fund"), while others in the AIM V.I.
Growth and Income Fund ("the Growth and Income Fund") and
Putnam VT New Opportunities Fund ("the Putnam Fund"),
collectively referred to as ("the Funds"). The Equity
Subaccount invests exclusively in the shares of the Equity
Portfolio; the Income Subaccount invests exclusively in the
shares of the Income Portfolio; the Money Market Subaccount
invests exclusively in the shares of Money Market Portfolio;
the Managed Subaccount invests exclusively in the shares of
the Managed Portfolio; the Government Securities Subaccount
invests exclusively in the shares of Government Securities
Portfolio; and the International Equity Subaccount invests in
shares of the International Equity Portfolio. These six
portfolios make up the IDS Life Series Fund, Inc., a series
mutual fund. The YGI Subaccount invests exclusively in shares
of the Growth and Income Fund. This fund is part of the AIM
Variable Insurance Funds, Inc., a series mutual fund. The YNO
Subaccount invests exclusively in shares of the Putnam VT New
Opportunities Fund. This fund is a portfolio of Putnam
Variable Trust, a series mutual fund.
All shares issued by the Fund are the same class (kind)
capital stock. They have a par value of $.001 a share. They
are fully paid and nonassessable and can be redeemed or
transferred. All shares have equal voting rights. They can be
issued as full shares or fractions. A fraction of a share has
the same kind of rights and privileges as a full share. The
Fund currently has five portfolios, each issuing 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 the election of directors, all shares of the Fund vote
together as one series. All shares have cumulative voting when
voting on the election of directors. With cumulative voting,
each shareholder is entitled to a number of votes equal to the
number of directors to be elected, and has the right to divide
votes among candidates in any way. On an issue affecting a
particular portfolio, its shares vote as a separate series. An
example of such an issue would be a fundamental investment
restriction pertaining to only one portfolio. In voting on the
Investment Management and Services Agreement, approval of the
Agreement by the shareholders of a particular portfolio would
make the Agreement effective as to that portfolio, whether or
not it had been approved by the shareholders of the other
portfolios.
As previously stated, all of the assets held in the
subaccounts will be invested in shares of the corresponding
portfolio or in units of the Trust. With regard to the Fund,
IDS Life of New York is the Owner of those Fund shares and as
such has the right to vote to elect the Board of Directors of
the Fund, to vote upon certain matters that are required by
the 1940 Act to be approved or ratified by the shareholders,
and to vote upon
<PAGE>
any other matter that may be voted upon at a shareholders'
meeting. However, IDS Life of New York will vote the shares of
each Fund portfolio at regular and special meetings of the
shareholders of the Fund in accordance with instructions
received from the Owners of the Policies. Fund shares held in
each subaccount for which no timely instructions from Owners
are received, and Fund shares that are not otherwise
attributable to Owners, will be voted by IDS Life of New York
in the same proportion as those shares in that subaccount for
which instructions are received. The number of Fund shares in
each subaccount for which instructions may be given by an
Owner is determined by applying the Owner's 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
90 days before the meeting of the Fund. Fractional votes are
counted. Owners will receive notice of each meeting of
shareholders together with any proxy solicitation materials,
and a statement of the number of votes as to which they are
entitled to give directions at the meeting.
IDS Life of New York may, if required by state insurance
officials, disregard voting instructions if such instructions
would require shares to be voted so as to cause a change in
the goals of one or more of the Funds' portfolios, or to
approve or disapprove an investment advisory contract for the
Fund. In addition, IDS Life of New York itself may disregard
voting instructions that would require changes in the
investment policy or investment adviser of one or more of the
Fund's portfolios, provided that 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 advise Owners of that
action and its reasons for such action in the next report to
Owners.
(g) Whether security holders must be given notice of any change in:
(1) the composition of the assets of the trust.
If shares of any Fund portfolio or Trust units should
not be available 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 in view of the purposes of
the subaccount, shares of another registered,
open-end management investment company or unit
investment trust may be substituted for portfolio
shares or Trust units held in the subaccount. 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 such Act in
the event 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 the 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 the insurance
department of the state of New York. IDS Life of New
York will notify Owners within five days of any
substitution or change.
<PAGE>
(2) the terms and conditions of the securities issued by the
trust.
No change in the terms and conditions of an issued
and outstanding Policy can be made without the
consent of the Owner, other than as set forth in
paragraph (1) above.
(3) the provisions of any indenture or agreement of the trust.
Not applicable.
(4) the identity of the depositor, trustee or custodian.
There is no provision requiring notice to, or consent
of, Owners with respect to any change in the identity
of the Variable Account's depositor. However, IDS
Life of New York's obligations under the Policy
cannot be transferred to any other entity without the
consent of the Owner.
(h) Whether the consent of security holders is required in order for
action to be taken concerning any change in:
(1) the composition of the assets of the trust.
Consent of Owners is not required when changing the
underlying securities of any of the Subaccounts.
However, to change these securities, approval of the
Securities and Exchange Commission and the insurance
department of the state of New York may be necessary.
(2) the terms and conditions of the securities issued by
the trust.
No change in the terms and conditions of the Policy
may be made without the consent of the Owner, except
as provided in paragraph (1) above.
(3) the provisions of any indenture or agreement of the
trust.
Not applicable.
(4) the identity of the depositor, trustee or custodian.
The answer to Item 10(b)(4) is incorporated by
reference.
(i) Any other Principal feature of the securities issued by the
trust or any other principal right, privilege or obligation
not covered by subdivisions (a) to (g) or by any other item in
this form.
Policy 1
The Owner has flexibility concerning the amount and
frequency of premium payments. At the time of application,
the Owner will determine a Scheduled Premium. The Scheduled
Premium will be a level amount at a
<PAGE>
fixed interval of time. However, the Owner need not adhere to
the Scheduled Premium. Instead, the Owner may, subject to
certain restrictions, make premium payments in any amount and
at any frequency.
Premium payments may be increased or decreased at any time.
The minimum payment which IDS Life of New York will accept is
$25. IDS Life of New York reserves the right to limit any
payment. Currently the maximum payment that IDS Life of New
York will accept is $500,000.
The failure to pay a scheduled premium will not itself cause
the Policy to lapse. However, the payment of scheduled
premiums or unscheduled premiums in any amount or frequency
will not guarantee that the Policy will remain in force.
Subject to the limitations contained in the Policy, payment of
the Minimum Monthly Premium will keep the coverage in force
until the later of the insured's Age 65 Anniversary or five
years from the policy date.
The Policy contains two death benefit options. Under Death
Benefit Option 1, the death benefit is the greater of the
Specified Amount or a percentage of policy value. Under Death
Benefit Option 2, the death benefit is the greater of the
Specified Amount plus the policy value, or a percentage of
policy value.
Before issuing any policy, IDS Life of New York requires
evidence of insurability satisfactory to it. IDS Life of New
York will generally not issue a policy to persons over the age
of 75. It may, however, at its sole discretion, issue a policy
to an applicant above age 75. The Initial Minimum Specified
Amount is $50,000, but this is reduced to $40,000 in Policy
Years 3 through 10, and $25,000 thereafter.
Policy 2
Premiums
Payment of Premiums
In applying for the policy, the owner must decide how much
they intend to pay and how often they will make payments.
During the early policy years until the policy value is
sufficient to cover the surrender charge, IDS Life of New York
requires that the owner pay the minimum initial premiums. The
owner 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 the
policy.
The scheduled premium serves only as an indication of the
owner's intent as to the frequency and amount of future
premium payments. The owner may skip scheduled premium
payments at any time if their cash surrender value is
sufficient to pay the monthly deduction, or if they have paid
sufficient premium to keep the DBG-100 or the minimum initial
premium period in effect.
<PAGE>
The owner 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 the owner has flexibility in paying premiums, the
amount and frequency of their payments will affect the policy
value, cash surrender value and length of time their policy
will remain in force, as well as affect whether the DBG-100 or
the minimum initial premium period remain in effect.
Premium limitations:
The owner may make unscheduled premium payments at any time
and in the amount of at least $50. IDS Life of New York
reserves the right to limit the number and amount of
unscheduled premium payments.
No premium payments, scheduled or unscheduled, are allowed on
or after the youngest insured's attained insurance age 100.
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 the policy date, IDS Life of New York holds all premiums
in the fixed account, and IDS Life of New York credits
interest on the net premiums (gross premiums minus premium
expense charge) at the current fixed account rate. As of the
policy date, IDS Life of New York will allocate the net
premiums plus accrued interest to the account(s) the owner has
selected in their application. At that time, IDS Life of New
York will begin to assess the various loads, fees and charges.
Any amount allocated to a subaccount is converted into
accumulation units of that subaccount. 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.
Insurability: Before issuing the policy, IDS Life of New York
requires satisfactory evidence of the insurability of the
persons whose lives the owner proposes to insure. IDS Life of
New York's underwriting department will review the owner's
application and any medical information or other data required
to determine whether the proposed individuals are insurable
under IDS Life of New York's underwriting rules. The owner's
application may be declined if a person fails to meet the
underwriting requirements and any premiums that were paid will
be returned.
<PAGE>
Age limit: The policy is available only to persons age 35 and
older. In addition, IDS Life of New York generally will not
issue a policy to persons over the insurance age of 85. It
may, however, do so at its sole discretion.
Proceeds payable upon death
IDS Life of New York will pay a benefit to the beneficiary of
the policy when the last surviving insured dies. If that death
is prior to the youngest insured's attained insurance age 100,
the amount payable is based on the specified amount and death
benefit option the owner has selected, as described below,
less any indebtedness.
On the youngest insured's attained insurance age 100, the
amount payable is the cash surrender value.
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 last surviving
insured's death; or
o the applicable percentage of the policy value on the
date of the last surviving insured's death, if that
death occurs on a valuation date, or on the next
valuation date following the date of death.
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 on the date
of the last surviving insured's death, if that death
occurs on a valuation date, or on the next valuation
date following the date of death.
Information Concerning the Securities Underlying the Trust's Securities
11. Describe briefly the kind or type of securities comprising the unit of
specified securities in which the security holders have an interest.
The securities to be held in the Subaccounts will be shares of the Fund
or units of the Trust described in Item 12. This fund is a registered,
open-end diversified management investment company. The Trust is a
registered unit investment trust (UIT).
12. If the trust is the issuer of periodic payment plan certificates, and
if any underlying securities were issued by another investment company,
furnish the following information for each such company:
(a) Name of Company.
(1) IDS Life Series Fund, Inc.
<PAGE>
(2) Smith Barney Inc. Stripped ("Zero Coupon") U.S.
Treasury Securities Fund, Series A.
(3) AIM Variable Insurance Funds, Inc.
(4) Putnam Variable Trust
(b) Name and principal address of depositor.
Investment manager of IDS Life Series Fund, Inc. is IDS Life Insurance Company
Investment advisor of IDS Life Series Fund, Inc. is American Express Financial
Corporation IDS Tower 10 Minneapolis, MN 55440
The sponsor of Smith Barney, Inc. Stripped ("Zero Coupon")
U.S. Treasury Securities Fund, Series A, is
Smith Barney, Inc.
Unit Trust Department
388 Greenwich St.
New York, NY 10013
Investment advisor of AIM V. I. Growth and Income Fund
A I M Advisors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046
Investment manager of Putnam VT New Opportunities Fund
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
(c) Name and principal business address of trustee or custodian.
American Express Trust Company
1200 Northstar Center West
Minneapolis, MN 55402
acts as custodian for IDS Life Series Fund, Inc.
The Bank of New York
101 Barclay Street
New York, NY 10286
acts as custodian for the Smith Barney Inc. Stripped ("Zero
Coupon") U.S. Treasury
Securities Fund, Series A.
State Street Bank & Trust Co.
225 Franklin Street
Boston, MA 02110
<PAGE>
acts as custodian for the AIM V. I. Growth and Income Fund.
Putnam Fiduciary
Trust Company
One Post Office Square
Boston, MA 02109
acts as custodian for Putnam VT New Opportunities Fund.
(d) Name and principal business address of principal underwriter.
IDS Life of New York
20 Madison Avenue Ext.
Albany, NY 12203
(e) The period during which the securities of such Company have
been the underlying securities.
IDS Life Series Fund - Equity, Money Market, Managed and
Government Securities subaccounts commenced operations on
August 31, 1987. IDS Life Series Fund International Equity
subaccount commenced operations on October 28, 1994. YGI
subaccount (investing in AIM V. I. Growth and Income Fund) and
YNO subaccount (investing in Putnam VT New Opportunities Fund)
each commenced operations on November 22, 1996. The 2004
subaccount (investing in Smith Barney, Inc. Stripped ("Zero
Coupon") U.S. Treasury Securities Fund, Series A) commenced
operation on August 31, 1987.
Information Concerning Loads, Fees, Charges and Expenses
13. (a) Furnish the following information with respect to each
load, fee, expense or charge to which (1) principal payments,
(2) underlying securities, (3) distributions, (4) cumulated or
reinvested distributions or income, and (5) redeemed or
liquidated assets or the trust's securities are subject:
(A) the nature of such load, fee, expense or charge;
(B) the amount thereof;
(C) the name of the person to whom such amounts are paid
and his relationship to the trust;
(D) the nature of the services performed by such person in
consideration for such load, fee, expense or charge.
Policy 1
(1) Principal Payments.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Nature of Charge Amount Person to whom Paid/Relationship Services
Sales Charge 2.5% of Gross Premiums IDS Life of New York Sales Expenses
Premium Tax Charge 1.0% of Gross Premiums IDS Life of New York State Premium Taxes
<PAGE>
Policy Fee $5 per policy per month IDS Life of New York Administrative
Expenses
Cost of Insurance Tabular charge per $1000 net amount at IDS Life of New York Insurance Protection
Charge risk each policy month, determined by
age, sex and insurance rating of the
insured
Cost of Policy Tabular charge each policy month IDS Life of New York Optional Insurance
Riders determined by nature and amount of Benefits
riders attached to policy
Death Benefit $0.01 per $1000 of Specified Amount IDS Life of New York Death Benefit
Guarantee Charge and Other Insured Rider Coverage each Guarantee Risk
policy month that the Death Benefit
Guarantee is in effect
Contingent $4 per $1000 Initial Specified Amount IDS Life of New York Issue and
Deferred Issue if policy is surrendered within 5 Underwriting
and years of policy issue, decreasing Expenses at Issue
Administrative monthly thereafter at a rate of 20%
Expense Charge per year
(Issue)
Contingent $4 per $1000 increase in Specified IDS Life of New York Issue and
Deferred Issue Amount if policy is surrendered within Underwriting
and 5 policy years of increase, decreasing Expenses at Increase
Administrative monthly thereafter at a rate of 20%
Expense Charge per year
(Increase)
Contingent 27.5% of Gross Premiums up to amount IDS Life of New York Sales Expenses at
Deferred Sales shown in policy (conservative estimate Issue (Issue)
Charge (Issue) of one Guideline Annual Premium) plus
6.5% of all other Gross Premiums
except those attributable to an
Increase or, if less, Tabular amount
per $1000 Initial Specified Amount -
determined by age, sex and insurance
rating of insured - if policy is
surrendered within 5 policy years of
issue, decreasing monthly thereafter
at a rate of 20% per year
Contingent 6.5% of Premiums attributable to the IDS Life of New York Sales Expenses at
Deferred Sales Increase or, if less, Tabular amount Increase
Charge (Increase) per $1000 increase in
Specified Amount - determined by age,
sex and insurance rating of insured - if
policy is surrendered within 5 policy
years of Increase, decreasing monthly
thereafter at a rate of 20% per year
Partial Surrender $25 or, if less, 2% of Policy Value IDS Life of New York Transaction Costs
Fee surrendered
<PAGE>
(2) Underlying Security
Investment The Money Market Portfolio of IDS Life IDS Life Investment
Management Fee Series Fund, Inc., pays a fee equal on management and
an annual basis to .50% of its daily services
net assets.
The Putnam VT New Opportunities Fund Putnam Investment
pays a fee of 0.63% of its daily net management and
assets. services
The A I M V. I. Growth and Income Fund A I M Investment
pays a fee of 0.65% of its daily net management and
assets. services
The Equity, Income, Managed and IDS Life
Government Securities Portfolios of
IDS Life Series Fund, Inc. each pay a
fee equal on an annual basis to .70%
of their daily net assets.
The International Equity Portfolio of IDS Life
IDS Life Series Fund, Inc. pays a fee
on an annual basis equal to 0.95% of
its average daily net assets.
Non-Advisory IDS Life Series Fund, Inc. will IDS Life Non-Advisory
Expense Charges reimburse IDS Life for non-advisory Expenses described
expenses in Agreement
Policy 2
(1) Principal Payments.
Nature of Charge Amount Person to whom Paid/Relationship Services
Sales Charge 7.25 % of all premiums paid. IDS Life of New York Sales Expenses
Premium Tax Charge 1.0% of premium payment. IDS Life of New York State Premium Taxes
Federal Tax Charge 1.25% of each premium payment. IDS Life of New York Federal Taxes
Policy Fee Currently $30 per policy month, never IDS Life of New York Administrative
to exceed $30 per policy month. Expenses
Cost of Insurance The monthly cost of insurance times IDS Life of New York Insurance Protection
the total of the death benefit minus
the policy value plus any other flat
extra insurance charges.
Cost of Policy Determined by nature and amount of IDS Life of New York Optional Insurance
Riders riders attached to policy. Benefits
<PAGE>
Contingent $4 per $1,000 of the initial specified IDS Life of New York Issue and
Deferred Issue amount of the policy, if it is Underwriting
and surrendered during the first policy Expenses at Issue
Administrative years, and then decreasing monthly
Expense Charge until it is zero at the end of 15
(Surrender Charge) policy years.
Partial Surrender $25 (or 2% of the amount surrendered; IDS Life of New York Transaction Costs
Fee if less).
(2) Underlying Security
Investment The Money Market Portfolio of IDS Life IDS Life Investment
Management Fee Series Fund, Inc., pays a fee equal on management and
an annual basis to .50% of its daily services
net assets.
The Putnam VT New Opportunities Fund Putnam Investment
pays a fee of 0.63% of its daily net management and
assets. services
The A I M V. I. Growth and Income Fund A I M Investment
pays a fee of 0.65% of its daily net management and
assets. services
The Equity, Income, Managed and IDS Life
Government Securities Portfolios of
IDS Life Series Fund, Inc. each pay a
fee equal on an annual basis to .70%
of their daily net assets.
The International Equity Portfolio of IDS Life
IDS Life Series Fund, Inc. pays a fee
on an annual basis equal to 0.95% of
its average daily net assets.
Non-Advisory IDS Life Series Fund, Inc. will IDS Life of New York Non-Advisory
Expense Charges reimburse IDS Life of New York for Expenses described
non-advisory expenses in Agreement
</TABLE>
(3) Distributions.
Not applicable. See paragraph (4) below.
(4) Cumulated or reinvested distributions or income.
All investment income and other distributions are
reinvested in Fund shares at net asset values.
(5) Redeemed or liquidated assets.
There are no charges for redeemed or liquidated
assets of the Trust's securities.
<PAGE>
(b) For each installment payment type of periodic payment plan
certificate of the trust, furnish the following information
with respect to sales load and other deductions from principal
payments.
(1) Amounts of payments to be made on certificates
(2) Amount of sales load
(3) Fee of custodian or trustee
(4) Insurance premium
(5) Other deductions from payments
(6) Total deductions (2 to 5)
(7) Net amount invested
Policies 1 and 2
See Item 13(a)(1).
(c) State (1) the amount of sales load as a percentage of the net
amount invested, and (2) the amount of total deductions as a
percentage of the net amount invested for each type of
security issued by the trust.
Policy 1
(1) 2.5%. However, this does not take into account the
Contingent Deferred Sales Charge described in Item
13(a)(1). The Contingent Deferred Sales Charge will
not exceed 27.5% of payments up to one Guideline
Annual Premium plus 6.5% of payments in excess of one
Guideline Annual Premium; and 6.5% of any other
amounts attributable as premiums after an Increase in
Specified Amount.
(2) 3.5%. However, this does not take into account the
Contingent Deferred Sales Charge or Contingent
Deferred Issue and Administrative Expense Charge or
any of the other deductions from Policy Value
described in Item 13(a)(1).
Policy 2
(1),(2) Sales Charge: 7.25% of all premiums paid. However,
this does not take into account the Contingent Deferred
Issue and Administrative Expense Charge or any of the
other deductions from Policy Value described in Item
13(a)(1).
Premium tax charge: 1.0% of each premium payment.
Federal tax charge: 1.25% of each premium payment.
(d) Explain the reasons for any difference in the price at which
securities are offered generally to the public, and the price
at which securities are offered for any class of transactions
to any class or group of individuals, including officers,
directors, or employees of the depositor, trustee custodian or
principal underwriter.
Not applicable.
<PAGE>
(e) Furnish a brief description of any loads, fees, expenses or
charges not covered in Item 13(a) which may be paid by
security holders in connection with the trust or its
securities.
Policy 1
IDS Life of New York deducts a Mortality and Expense Risk
Charge, which is equal on an annual basis to 0.90% of the
average assets of the Subaccounts. This charge is needed to
reimburse IDS Life of New York for assuming certain mortality
and expense risks under the Policy.
IDS Life of New York deducts a Transaction Charge, currently
equal on an annual basis to 0.25% of the average assets of the
Subaccounts investing in the Trusts. IDS Life of New York may
increase this charge in the future but not to more than 0.50%.
This is a cost-based charge needed to reimburse IDS Life of
New York for amounts paid to Smith Barney on the sale of Trust
units to the Variable Account.
IDS Life of New York reserves the right to charge the
Subaccounts for any tax liability it may incur because of the
operations of the Subaccounts, regardless of whether or not
the tax is actually paid by IDS Life of New York.
Policy 2
Mortality and expense risk insurance
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. 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 administration expense charge
may be insufficient to cover the cost of administering the
policy.
(f) State whether the depositor, principal underwriter, custodian
or trustee, or any affiliated person of the foregoing may
receive profits or other benefits not included in answer to
Item 13(a) or 13(b) through the sale or purchase of the
trust's securities or interests in underlying securities, and
described fully the nature and extent of such profits or
benefits.
Not as principal underwriter or depositor will IDS Life of New
York, nor any affiliated person of IDS Life of New York,
receive any profit or other benefit not included in the answer
to Item 13(a) or 13(b) through the sale or purchase of the
Policy or Fund shares, except that IDS Life will pay to
American Express Financial Corporation (AEFC) a fee equal on
an annual basis to .25% (.50% for International) of the Fund's
average net assets for investment advice relative to the Fund
under an Investment Advisory Agreement between AEFC and IDS
Life.
<PAGE>
As custodian of the underlying securities, American Express
Trust Company will receive certain fees indirectly from the
Fund. The fees will be comparable to the fees received by
custodians which hold the assets of other mutual funds.
(g) State the percentage that the aggregate annual charges and
deductions for maintenance and other expenses of the trust,
bear to the dividend and interest income from the trust
property during the period covered by the financial statements
filed herewith.
Not applicable.
(h) For life insurance company separate accounts registered as
unit investment trusts issuing variable life insurance
contracts:
If proceeds from explicit sales loads will not cover the
expected costs of distributing the contracts, identify the
source from which the shortfall, if any, will be paid. If any
shortfall is to be made up from assets from the Insurance
Company's general account, disclose, if applicable, the extent
to which any amounts paid by the Insurance Company may
consist, among other things, of proceeds derived from
mortality and expense risk charges deducted from the account.
If the level of the mortality and expense risk charge is above
the range of industry practice for comparable variable life
insurance contracts, disclose this fact along with an
explanation of why the charge is above this range, including
an identification of the factors used to calculate the charge.
If the level of the mortality and expense risk charge is above
the range of industry practice, also disclose the extent to
which the Insurance Company realizes positive cash flows (risk
charge proceeds net of current costs of meeting mortality and
expense guarantees) from risk charges, as well as the extent
to which positive cash flows may be used to pay distribution
expenses. If a portfolio company, selling its securities to
the trust, directly or indirectly pays distribution expenses
under 1940 Act Rule 12b-1, list the principal types of
activities for which payments are or will be paid; and (1) if
the plan has been in effect for a full fiscal year, give the
total amount spent in most recent fiscal year, as a percentage
of net assets; or (2) otherwise describe the basis on which
payments will be made (e.g., percentage of net assets, etc.).
Disclose the extent, if any, to which such a plan of
distribution directly or indirectly pays, or will pay,
expenses of distributing the variable life insurance
contracts.
Any profit from the mortality and expense risk charge 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. Any further deficit will have
to be made up from IDS Life of New York's general assets.
Information Concerning the Operations of the Trust
14. Describe the procedure with respect to applications (if any), and the
issuance and authentication of the trust's securities, and state the
substance of the provisions of any indenture or agreement pertaining
thereto.
<PAGE>
Policies 1 and 2
A person desiring to purchase a Policy must complete an application on
a form provided by IDS Life of New York and submit it to the Home
Office of IDS Life of New York. If the applicant meets the prescribed
standards, a Policy will be issued.
15. Policies 1 and 2
Describe the procedure with respect to the receipt of payments from
purchasers of the trust's securities and the handling of the proceeds
thereof, and state the substance of the provisions of any indenture or
agreement pertaining thereto.
The Owner determines in the application what portions, if any, of the
premiums are to be allocated to each of the Subaccounts of the Variable
Account, the Fixed Account or both. Until the date that an application
is approved by IDS Life of New York's Home Office underwriting
department, the premiums received by IDS Life of New York are held in
IDS Life of New York's Fixed Account and interest at the current Fixed
Account rate is credited on the net premiums (gross premium received
minus the Premium Expense Charge). As of the date that IDS Life of New
York's Home Office underwriting department approves the application,
the net premiums plus interest accrued thereon will be allocated to the
Fixed Account and/or one or more of the subaccounts, in accordance with
the allocation instructions received from the Owner in the application.
At that time, the various loads, fees, charges and expenses will begin
to be assessed.
16. Policies 1 and 2
Describe the procedure with respect to the acquisition of underlying
securities and the disposition thereof, and state the substance of the
provisions of any indenture or agreement pertaining thereto.
The Owner determines in the application what portions, if any, of the
premiums are to be allocated to each of the Subaccounts of the Variable
Account, the Fixed Account or both. Until the date that an application
is approved by IDS Life of New York's Home Office underwriting
department, the premiums received by IDS Life of New York are held in
IDS Life of New York's Fixed Account and interest at the current Fixed
Account rate is credited on the net premiums (gross premium received
minus the Premium Expense Charge). As of the date that IDS Life of New
York's Home Office underwriting department approves the application,
the net premiums plus interest accrued thereon will be allocated to the
Fixed Account and/or one or more of the Subaccounts, in accordance with
the allocation instructions received from the Owner in the application.
For amounts allocated to the Subaccounts, IDS Life of New York applies
the Policy Value so allocated to the purchase of Fund shares or units
of the Trust at their net asset value determined as of the end of the
Valuation Period during which the written directions to make the
allocation are received by IDS Life of New York at its Home Office.
Fund shares or units of the Trust may be redeemed by IDS Life of New
York to permit the payment of insurance benefits, amounts requested for
surrender, loan payments, interest charges on loans, surrender charges
and fees and other purposes contemplated by the Policy.
17. (a) Describe the procedure with respect to withdrawal or
redemption by security holders.
<PAGE>
Policies 1 and 2
Any surrender by an Owner may be made by a request in writing
to the Home Office of IDS Life of New York. IDS Life of New
York will determine the Surrender Value as of the end of the
Valuation Period during which the request is received. See the
response to item 13(a) for information concerning surrender
charges and fees. The Surrender Value will be paid within
seven days after the Owner's written request is received by
IDS Life of New York at its Home Office, however IDS Life of
New York reserves the right to defer any payment of Surrender
Value (1) which derives from a Premium Payment made by a check
which has not cleared the banking system (good payment has not
been collected), or (2) if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings),
(b) trading on the Exchange is restricted; (c) an emergency
exists such that it is not reasonably practical to dispose of
securities held in the Variable Account or to determine the
value of the Variable Account's net assets; or (d) the
Securities and Exchange Commission by order so permits for the
protection of security holders. Conditions described in (b)
and (c) will be decided by or in accordance with rules of the
Securities and Exchange Commission.
Any surrenders of the Policy Value from the Fixed Account may
be postponed for up to 6 months. If IDS Life of New York
postpones payment for more than 30 days, interest at an annual
rate of 3 percent will be paid on the amount surrendered for
the period of postponement.
(b) Furnish the names of any persons who may redeem or repurchase,
or are required to redeem or repurchase, the trust's
securities or underlying securities from security holders, and
the substance of the provisions of any indenture or agreement
pertaining thereto.
IDS Life of New York is required to honor surrender requests
as described in Items 10(c) and 17(a).
Policy 1
The Fund is required to redeem Fund shares at net asset value
at the request of IDS Life of New York, and to make payment
therefor to the Variable Account within seven days of the
receipt of the redemption request. The Trust is required to
redeem Trust units at net asset value at the request of IDS
Life of New York, and to make payment therefor to the Variable
Account within seven days of the receipt of the redemption
request.
Policy 2
The Fund is required to redeem Fund shares at net asset value
at the request of IDS Life of New York, and to make payment
therefor to the Variable Account within seven days of the
receipt of the redemption request.
<PAGE>
(c) Indicate whether repurchased or redeemed securities will be
canceled or may be resold.
A totally surrendered Policy will be canceled.
18. (a) Describe the procedure with respect to the receipt, custody
and disposition of the income and other distributable funds of
the trust and state the substance of the provisions of any
indenture or agreement pertaining thereto.
Policy 1
All income and other distributable funds of each Subaccount
investing in the Fund are reinvested in shares of the
appropriate Fund Portfolio and are added to the assets of that
Subaccount. For Trust units, all investment income and other
distributions, if any, are held in the Trust.
Policy 2
All income and other distributable funds of each Subaccount
investing in the Fund are reinvested in shares of the
appropriate Fund Portfolio and are added to the assets of that
Subaccount.
(b) Describe the procedure, if any, with respect to the
reinvestment of distributions to security holders and state
the substance of the provisions of any indenture or agreement
pertaining thereto.
Not applicable.
(c) If any reserves or special funds are created out of income or
principal, state with respect to each such reserve or fund the
purpose and ultimate disposition thereof, and describe the
manner of handling the same.
At the present time, IDS Life of New York does not intend to
establish any reserves for federal income taxes which may be
attributable to the Variable Account.
(d) Submit a schedule showing the periodic and special
distributions which have been made to security holders during
the three years covered by the financial statements filed here
with. State for each such distribution the aggregate amount
and amount per share. If distributions from sources other than
current income have been made, identify each such other source
and indicate whether such distribution represents the return
of principal payments to security holders. If payments other
than cash were made, describe the nature thereof.
Not applicable.
19. Describe the procedure with respect to keeping of records and accounts
of the trust, the making of reports and the furnishing of information
to security holders, and the substance of the provisions of any
indenture or agreement pertaining thereto.
<PAGE>
IDS Life of New York has primary responsibility for all administration
of the Policy and will maintain the records and books of the Variable
Account.
20. State the substance of the provisions of any indenture or agreement
concerning the trust with respect to the following:
(a) Amendments to such indenture or agreement.
Not applicable.
(b) The extension or termination of such indenture or agreement.
Not applicable.
(c) The removal or resignation of the trustee or custodian, or the
failure of the trustee or custodian to perform its duties,
obligations and functions.
Not applicable.
(d) The appointment of a successor trustee and the procedure if a
successor trustee is not appointed.
Not applicable.
(e) The removal or resignation of the depositor, or the failure of
the depositor to perform its duties, obligations and functions.
There are no provisions relating to the appointment of a
successor depositor.
(f) The appointment of a successor depositor and the procedure if
a successor depositor is not appointed.
There are no provisions regarding the removal or resignation
of IDS Life of New York, nor its failure to perform its
duties, obligations, and functions as depositor.
21 (a) State the substance of the provisions of any indenture or
agreement with respect to loans to security holders.
Policy 1
The Owner may obtain a loan from the Company be sending a
Written Request. The loan value of the Policy is the only
security required. The policy loan rate is 6.1 percent per
annum payable in advance. The Owner may borrow an amount up to
85 percent of the total Policy Value less Surrender Charges.
Interest to pay for the loan until the next policy anniversary
will be included in determining the maximum loan value. IDS
Life of New York will compute the Loan Value as of the end of
the Valuation Period during which the loan request is received
at its Home Office.
<PAGE>
The Loan Value of the Variable Account will be paid within
seven days after the Owner's written request is received by
IDS Life of New York at its Home Office, however IDS Life of
New York reserves the right to defer any payment of Loan Value
(1) which derives from a Premium Payment made by a check which
has not cleared the banking system (good payment has not been
collected), or (2) if (a) the New York Stock Exchange is
closed (other than customary weekend and holiday closings),
(b) trading on the Exchange is restricted; (c) an emergency
exists such that it is not reasonably practical to dispose of
securities held in the Account or to determine the value of
the Account's net assets; or (d) the Securities and Exchange
Commission by order so permits for the protection of security
holders. Conditions described in (b) and (c) will be decided
by or in accordance with rules of the Securities and Exchange
Commission. Any loans from the Fixed Account may be delayed up
to 6 months from the date IDS Life of New York receives the
request. If IDS Life of New York postpones payment more than
30 days, interest at an annual rate of 3 percent will be paid
on the amount loaned or surrendered for the period of
postponement.
Policy 2
Policy loans
The owner may borrow against their policy by written or
telephone request. 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. (Loans by telephone are limited to $50,000).
Interest rate: The interest rate for policy loans is 6% per
year. After the policy's 10th anniversary we expect to reduce
the loan interest rate to 4% per year. Interest is charged
daily and due at the end of the policy year.
Minimum loan: $500 or the remaining loan value, whichever is
less.
Maximum loan: IDS Life of New York will compute the maximum
loan value as of the end of the valuation period during which
we receive your loan request. The amount available at any time
for a new loan is the maximum loan value less any existing
indebtedness. In doing so, IDS Life of New York reserves the
right to deduct from the loan value interest for the period
until the next policy anniversary and monthly deductions that
will be taken until the next policy anniversary.
Payment of loaned funds: Generally, IDS Life of New York will
pay loans within seven days after IDS Life of New York
receives the owner's request (with certain exceptions - see
"Deferral of payments").
Allocation of loans to accounts: If the owner does 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. IDS Life of New York will credit the
policy value loaned with 4% annual interest.
<PAGE>
Repayments: Loan repayments will be allocated to subaccounts
and/or the fixed account using the premium allocation
percentages in effect unless the owner tells IDS Life of New
York otherwise. Repayments must be in amounts of at least $50.
Effects of Policy loans:
If the owner does not repay the loan, it will reduce the death
benefit and policy value. Even if the owner does repay it, the
owner's 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
portfolios. A loan may terminate the DBG-100 or the minimum
initial premium period. The loan amount is deducted from total
premiums paid, which may reduce the total below the level
required to keep the DBG-100 or the minimum initial premium
period in effect.
Taxes: If the owner's policy lapses or the owner surrenders it
with an outstanding indebtedness, and the amount of
outstanding indebtedness plus the cash surrender value is more
than the sum of premiums the owner paid, the owner will
generally be liable for taxes on the excess.
Deferral of payments: IDS Life of New York reserves the right
to defer payments of cash surrender value, policy loans or
variable death benefits in excess of the specified amount if:
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 from the fixed account may be delayed up to six
months from the date IDS Life of New York receives the
request. If IDS Life of New York postpones the payment of loan
or surrender proceeds more than 10 days, IDS Life of New York
will pay the owner interest on the amount loaned or
surrendered at an annual rate of 4% for the period of
postponement.
(b) Furnish a brief description of any procedure or arrangement by
which loans are made available to security holders by the
depositor, principal underwriter, trustee or custodian, or any
affiliated person of the foregoing.
Policy 1
If it is not specified whether the loan is to be made from the
Fixed Account or the Subaccounts, the loan will be made from
the subaccounts and the Fixed Account in the same proportion
as the value in each subaccount and the Fixed Account bears to
the total policy value, less indebtedness.
<PAGE>
A loan from the subaccounts will result in accumulation units
being redeemed and the proceeds transferred from the
subaccounts into IDS Life of New York's Fixed Account.
Repayments will be transferred into the Fixed Account and/or
the subaccounts. Loan repayments must be in amounts of at
least $25. Loan repayments will be allocated to subaccounts
and/or the Fixed Account using the premium allocation
percentages in effect unless the Owner tells IDS Life of New
York otherwise.
If additional interest accrues to the Policy loan and is not
paid when due, IDS Life of New York will increase the amount
of indebtedness in the fixed account to cover the amount of
such additional interest. The interest added to a policy loan
will be charged the same interest rate as the loan. IDS Life
of New York will allocate the amount of the additional
interest among the Fixed Account and/or the subaccounts, using
the monthly deduction allocation percentages. If the value in
the Fixed Account or any one of the subaccounts is
insufficient to pay the additional interest so allocated, the
entire additional interest will be deducted from the Fixed
Account and each of the subaccounts in the same proportion as
the value in the Fixed Account and each subaccount bears to
the total policy value, less indebtedness.
Policy 2
Allocation of loans to accounts: If the owner does 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. IDS Life of New York will credit the
policy value loaned with 4% annual interest. (See Repayments
Section under 21(a) Policy 2).
Overdue interest: If accrued interest is not paid when due,
IDS Life of New York 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. IDS Life of New York 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 the owner does not repay their
loan, it will reduce the death benefit and policy value. Even
if the owner does repay it, their 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 portfolios(s). A loan may
terminate the DBG-100. The loan amount is deducted from the
total premiums paid, which may reduce the total below the
level required to keep the DBG-100 in effect.
IDS Life of New York will credit the loaned amount with 4.5%
annual interest.
<PAGE>
(c) If such loans are made, furnish the aggregate amounts of loans
outstanding at the end of the last fiscal year, the amount of
interest collected during the last fiscal year allocated to
the depositor, principal underwriter, trustee or custodian or
affiliated person of the foregoing and the aggregate amount of
loans in default at the end of the last fiscal year covered by
financial statements filed herewith.
For Policy 1, the outstanding loan balance for fiscal year
1996 was $7,301,682.65. No loans were in default for Policy 1.
Not applicable for Policy 2.
22. State the substance of the provisions of any indenture or agreement
with respect to limitations on the liabilities of the depositor,
trustee or custodian, or any other party to such indenture or
agreement.
Not applicable.
23. Describe any bonding arrangement for officers, directors, partners or
employees of the depositor or principal underwriter of the trust,
including the amount of coverage and the type of bond.
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.
24. State the substance of any other material provisions of any indenture
or agreement concerning the trust or its securities and a description
of any other material functions or duties of the depositor, trustee or
custodian not stated in Item 10 or Items 14 to 23 inclusive.
The Owner may assign the Policy at any time. No such assignment is
effective as to IDS Life of New York, however, unless it is filed with
IDS Life of New York at its Home Office for recording.
III .
ORGANIZATION, PERSONNEL AND AFFILIATED PERSONS OF DEPOSITOR
Organization and Operations of Depositor
25. State the form or organization of the depositor of the trust, the name
of the state or other sovereign power under the laws of which the
depositor was organized and the date of organization.
IDS Life of New York is a stock life insurance company organized under
New York in 1972.
26. (a) Furnish the following information with respect to all fees
received by the depositor of the trust in connection with the
exercise of any functions or duties concerning securities of the
trust during the period covered by the financial statements filed
herewith.
<PAGE>
Policy 1
<TABLE>
<CAPTION>
Aggregate
Total purchase Amount of Amount of gross amount
payments by Amount of administrations management Amount of of load, fees,
Year security sales load fees received fees received other fees etc. received
holders received received
- ----------------- ---------------- --------------- ---------------- ---------------- --------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
1994 $8,111,811 $269,275 $2,634,696 $0 $0 $11,015,782
1995 8,347,157 464,724 3,170,655 0 0 11,982,536
1996 13,797,579 551,374 4,121,572 0 0 18,470,525
</TABLE>
Policy 2
Not applicable.
(b) The following information is furnished with respect to any fee
or any participation in fees received by the depositor from
any underlying investment company or any affiliated person or
investment adviser of such company.
IDS Life of New York has entered into certain agreements with
which it is compensated by the advisors and/or distributors of
AIM V.I. Growth and Income Fund and Putnam VT New
Opportunities Fund for the administrative services it provides
to these funds.
27. Describe the general character of the business engaged in by the
depositor including a statement as to any business other than that of
depositor of the trust. If the depositor acts or has acted in any
capacity with respect to any investment company or companies other than
the trust, state the name or names of such company or companies, their
relationship, if any, to the trust, and the nature of the depositor's
activities therewith. If the depositor has ceased to act in such named
capacity, state the date of and circumstances surrounding cessation.
IDS Life of New York conducts a conventional life insurance business in
addition to a variable annuity business. IDS Life of New York conducts
this business in the state of New York only.
IDS Life of New York is also the sponsor of other unit investment
trusts consisting of separate accounts funding variable life insurance
and variable annuities.
Officials and Affiliated Persons of Depositor
28. (a) Furnish as at latest practicable date the following information
with respect to the depositor of the trust, with respect to each
officer, director, or partner of the depositor, and with respect
to each natural person directly or indirectly owning, controlling
or holding with power to vote 5% or more of the outstanding
voting securities of the depositor.
Not applicable.
(b) Furnish a brief statement of the business experience during
the last five years of each officer, director or partner of
the depositor.
Directors. The directors of IDS Life of New York, together
with their principal occupations during the last five years,
are shown below.
<PAGE>
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.
Robert R. Grew
Lawyer and Partner, Carter, Ledyard & Milburn, NYC, 1957-
present.
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.
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.
Thomas V. Nicolosi
Director since October 1996; group vice president, AEFA, from
January 1995 to present; field vice president, AEFA, from
January 1988 to December 1994.
Stephen P. Norman
Secretary, American Express, since 1982.
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.
<PAGE>
Gordon H. Ritz
President, Con Rad Broadcasting Corporation (Minneapolis),
since 1975.
Richard M. Starr
Director since October 1996; managing counsel, American
Express Company, since March 1995; senior counsel, American
Express Company, from May 1992 to March 1995; counsel,
American Express Company, from June 1989 to May 1992.
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. The following are principal officers of
IDS Life of New York. Each officer serves at the pleasure of
the Board of Directors.
Mario Alaia
Claims officer and assistant secretary since 1988.
Darrell C. Beckstrom
Underwriting officer since 1994; underwriting technical
manager, IDS Life, since 1990; senior underwriter, IDS Life,
from 1987 to 1992.
Eugene C. Chen
Chief actuary since November 1996; manager of Life Planning
and Analysis, AEFA, from May 1995 to November 1996; senior
staff actuary - Product Development Risk Management, IDS Life,
from August 1992 to May 1995.
Darlene S. Farron
Treasurer since June 1996; financial project manager - Finance
Department from September 1994 to June 1996; team leader of
Premium, Investment and External Reporting - Finance
Department from March 1988 to September 1994.
Donna M. Gaglione
Secretary since 1995; manager of Administrative Services since
1992; treasurer from 1985 to 1992.
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.
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.
<PAGE>
Companies Owning Securities of Depositor
29. Furnish as at latest practicable date the following information with
respect to each Company which directly or indirectly owns, controls or
holds with power to vote 5% or more of the outstanding voting
securities of the depositor.
IDS Life of New York is a wholly owned subsidiary of IDS Life Insurance
Company, a Minnesota corporation, which is itself a wholly owned
subsidiary of American Express Financial Corporation; American Express
Financial Corporation, a Delaware corporation, is a wholly owned
subsidiary of American Express Company, American Express Tower, World
Financial Center, New York, New York 10285.
Controlling Persons
30. Furnish as at latest practicable date the following information with
respect to any person, other than those covered by Items 28, 29 and 42
who directly or indirectly controls the depositor.
None.
Compensation of Officers and Directors of Depositor
Compensation of Officers of Depositor
31. Furnish the following information with respect to the remuneration for
services paid by the depositor during the last fiscal year covered by
financial statements filed herewith:
(a) directly to each of the officers or partners of the depositor
directly receiving the three highest amounts of remuneration:
To be filed by amendment.
(b) directly to all officers or partners of the depositor as a
group exclusive of persons whose remuneration is included
under Item 31(a), stating separately the aggregate amount paid
by the depositor itself and the aggregate amount paid by all
the subsidiaries:
To be filed by amendment.
(c) indirectly or through subsidiaries to each of the officers or
partners of the depositor:
To be filed by amendment.
Compensation of Directors
32. Furnish the following information with respect to the remuneration
reported under Item 31, paid by the depositor during the last fiscal
year covered by financial statements filed herewith:
(a) the aggregate direct remuneration to directors:
<PAGE>
To be filed by amendment.
(b) indirectly or through subsidiaries to directors:
To be filed by amendment.
Compensation to Employees
33. (a) Furnish the following information with respect to the
aggregate amount of remuneration for services of all employees
of the depositor (exclusive of persons whose remuneration is
reported in Items 31 and 32) who received remuneration in
excess of $10,000 during the last fiscal year covered by
financial statements filed herewith from the depositor and any
of its subsidiaries.
Not applicable - see Item 31.
(b) Furnish the following information with respect to remuneration
for services paid directly during the last fiscal year covered by
financial statements filed herewith to the following classes of
persons (exclusive of those persons covered by Item 33(a)): (1)
sales managers, branch managers, district managers and other
persons supervising the sale of registrant's securities; (2)
salesmen, sales agents, canvassers and other persons making
solicitations but not in supervisory capacity; (3) administrative
and clerical employees; and (4) others (specify). If a person is
employed in more than one capacity, classify according to the
predominant type of work.
Not applicable - see Item 31.
Compensation to Other Persons
34. Furnish the following information with respect to the aggregate amount
of compensation for services paid any persons (exclusive of persons
whose remuneration is reported in Items 31, 32 and 33), whose aggregate
compensation in connection with services rendered with respect to the
trust in all capacities exceed $10,000 during the last fiscal year
covered by financial statements filed herewith from the depositor and
any of its subsidiaries.
Not applicable - see Item 31.
IV.
DISTRIBUTION AND REDEMPTION OF SECURITIES
Distribution of Securities
35. Furnish the names of the states in which sales of the trust's
securities (A) are currently being made, (B) are presently proposed to
be made, and (C) have been discontinued, indicating by appropriate
letter the status with respect to each state.
IDS Life of New York currently sells Policy 1 and intends to sell
Policy 2 in New York only.
<PAGE>
36. If sales of the trust's securities have at any time since January 1,
1936 been suspended for more than a month, describe briefly the reasons
for such suspension.
Not applicable.
37. (a) Furnish the following information with respect to each instance
where subsequent to January 1, 1937, any Federal or state
governmental officer, agency or regulatory body denied authority
to distribute securities of the trust, excluding a denial which
was merely a procedural step prior to any determination by such
officer, etc., and which denial was subsequently rescinded.
(1) Name of officer, agency or body.
(2) Date of denial.
(3) Brief statement of reasons given for denial.
Not applicable.
(b) Furnish the following information with regard to each instance
where, subsequent to January 1, 1937, the authority to
distribute securities of the trust has been revoked by any
Federal or state governmental officer, agency or regulatory
body.
(1) Name of officer, agency or body.
(2) Date of revocation.
(3) Brief statement of reason given for revocation.
Not applicable.
38. (a) Furnish a general description of the method of distribution of
securities of the trust.
IDS Life of New York may be deemed to be the principal
underwriter of the Policy and will perform all sales and
administrative duties. IDS Life of New York will distribute
the Policy exclusively through a sales force it shares with
American Express Financial Advisors Inc. AEFA is a registered
broker/dealer, and is a member of the National Association of
Securities Dealers, Inc. (NASD). Members of the IDS Life of
New York sales force are trained and licensed to sell both the
conventional insurance products of the Company, as well as its
variable life insurance and annuity contracts.
(b) State the substance of any current selling agreement between
each principal underwriter and the trust or the depositor,
including a statement as to the inception and termination
dates of the agreement, any renewal and termination
provisions, and any assignment provisions.
<PAGE>
Variable Annuity and Life Insurance Distribution Agreement
between AEFA (formerly IDS Financial Services, Inc.) and IDS
Life of New York. Under this agreement, IDS Life of New York
appoints AEFA to solicit and procure, within the state of New
York, applications for variable life insurance policies. Sales
compensation will be paid according to compensation schedules
published periodically. This agreement became effective July
1, 1987 and may be terminated by mutual agreement of the
parties upon 30 days' notice.
(c) State the substance of any current agreement or arrangements
of each principal underwriter with dealers, agents, salesmen,
etc., with respect to commissions, and overriding commissions,
territories, franchises, qualifications and revocations. If
the trust is the issuer of periodic payment plan certificates,
furnish schedules of commissions and the bases thereof. In
lieu of a statement concerning schedules of commissions, such
schedules of commissions may be filed as Exhibit A(3)(c).
Policy 1
IDS Life of New York will pay a commission of up to 47.5
percent of the Initial Minimum Monthly Premium (annualized)
when the Policy is sold, plus up to 3 percent of all premiums
in excess of twelve times the Minimum Monthly Premium.
Additional commissions will be paid if an increase in coverage
occurs. IDS Life of New York will also pay approximately 27
percent of the total representative's commission to the field
vice presidents and district sales managers of the selling
representative.
Policy 2
To be filed by amendment.
Information Concerning Principal Underwriter
39. (a) State the form of organization of each principal underwriter of
securities of the trust, the name of the state or other sovereign
power under the laws of which each underwriter was organized and
the date of organization.
American Express Financial Advisors, Inc.
IDS Tower 10
Minneapolis, MN 55440
(b) State whether any principal underwriter currently distributing
securities of the trust is a member of the National
Association of Securities Dealers, Inc.
American Express Financial Advisors Inc. is a member of the NASD.
40. (a) Furnish the following information with respect to all fees
received by each principal underwriter of the trust from the sale
of securities of the trust and any other functions in connection
therewith exercised by such underwriter in such capacity or
otherwise during the period covered by the financial statement
filed herewith.
<PAGE>
Not applicable.
(b) Furnish the following information with respect to any fee or
any participation in fees received by each principal
underwriter from any underlying investment company or any
affiliated person or investment adviser of such company:
(1) The nature of such fee or participation.
(2) The name of the person making payment.
(3) The nature of the services rendered in consideration
for such fee or participation.
(4) The aggregate amount received during the last financial
year covered by the financial statements filed
herewith.
Not applicable.
41. (a) Describe the general character of the business engaged in by each
principal underwriter, including a statement as to any business
other than the distribution of securities of the trust. If a
principal underwriter acts or has acted in any capacity with
respect to any investment company or companies, their
relationship, if any, to the trust and the nature of such
activities. If a principal underwriter has ceased to act in such
named capacity, state the date of and circumstances surrounding
such cessation.
AEFA offers mutual funds, investment certificates and a broad
range of financial management services. AEFA serves
individuals and businesses through its nationwide network of
more than 177 offices and more than 8,350 financial advisors.
(b) Furnish as at latest practicable date the address of each
branch office of each principal underwriter currently selling
securities of the trust and furnish the name and residence
address of the person in charge of such office.
Robert A. Hatton
VP and Chief Operating Officer
IDS Life of New York
20 Madison Ave. Ext.
Albany, NY 12203
(c) Furnish the number of individual salesmen of each principal
underwriter through whom any of the securities of the trust
were distributed for the last fiscal year of the trust covered
by the financial statements filed by such salesmen in such
year.
Policy 1
There were 511 individual salesmen.
<PAGE>
Policy 2
Not applicable.
42. Furnish as at latest practicable date the following information with
respect to each principal underwriter currently distributing securities
of the trust and with respect to each of the officers, directors or
partners of such underwriter.
Not applicable.
43. Furnish, for the last fiscal year covered by the financial statements
filed herewith, the amount of brokerage commissions received by any
principal underwriter who is a member of a national securities exchange
and who is currently distributing the securities of the trust or
effecting transactions for the trust in the portfolio securities of the
trust.
Not applicable.
43. (a) Furnish information with respect to the method of valuation used
by the trust for purposes of determining the offering price to
the public of securities issued by the trust or the valuation of
shares or interests in the underlying securities acquired by the
holder of a periodic payment plan certificate.
Policy 1
The Owner determines in the application what portions, if any,
of the premiums are to be allocated to the Fixed Account
and/or to each of the subaccounts. Until the date that an
application is approved by IDS Life of New York's home office
underwriting department, the premiums received by IDS Life of
New York are held in IDS Life of New York's Fixed Account and
interest at the current Fixed Account rate is credited on the
net premiums (gross premium received minus the Premium Expense
Charge). As of the date that IDS Life of New York's home
office underwriting department approves the application, the
net premiums plus interest accrued thereon will be allocated
to the Fixed Account and/or one or more of the subaccounts, in
accordance with the allocation instructions received from the
Owner in the application. At that time, the various loads,
fees, charges and expenses will begin to be assessed.
Upon allocation to the appropriate subaccounts, the policy
value in the Subaccounts is converted into accumulation units
of the subaccount. The number of accumulation units to be
credited to the Policy is determined by dividing the policy
value in the Subaccount by the accumulation unit value of that
Subaccount as of the end of the valuation period during which
the policy value was allocated to the respective subaccounts.
When amounts are transferred between the subaccounts, the
accumulation units in the first subaccount will be reconverted
into a cash value by multiplying the accumulation unit value
by the number of accumulation units necessary to equal the
amount to be transferred. The amount transferred will then be
converted into accumulation units of the second subaccount.
<PAGE>
The investment experience of a subaccount reflects increases
or decreases in the net asset value of the underlying fund
shares or in the value of units of the Trust and any charges
against the assets in each subaccount. Policy values for the
subaccounts are determined by multiplying the number of
accumulation units credited to the subaccounts by the
appropriate current accumulation unit value(s). The value of
the accumulation unit for each of the subaccounts was
arbitrarily set initially at $1. Units of each Trust will be
valued at the "Sponsor's Repurchase Price" as defined in the
prospectus for the Trust.
The value of an accumulation unit for any of the subaccounts
for any valuation period is determined by multiplying that
subaccount's accumulation unit value for the immediately
preceding valuation period by the Net Investment Factor for
the valuation period for which the accumulation unit value is
being calculated.
The Net Investment Factor for any subaccount investing in any
portfolio of the Fund or in any Trust for any valuation period
is determined by dividing (1) by (2) and subtracting (3) from
the result where:
(1) is the net result of:
(a) the net asset value per share of the portfolio or the
value of a unit of the Trust held in the subaccount
determined at the end of the current valuation period,
plus
(b) the per share amount of any dividend or capital gain
distribution made by the portfolio held in the
subaccount if the ex-dividend date occurs during the
current valuation period, plus or minus
(c) a charge or credit for any taxes reserved for, which is
determined by IDS Life of New York to have resulted
from the investment operations of the subaccount.
(2) is the net result of:
(a) the asset value per share of the portfolio or the value
of a unit of the Trust held in the subaccount
determined as of the end of the immediately preceding
valuation period, plus or minus
(b) the charge or credit for any taxes reserved for the
immediately preceding valuation period.
(3) is the percentage factor representing the mortality
and expense risk charge. Such factor is equal on an
annual basis to .90 percent of the daily net asset
value of the subaccount. In addition, for subaccounts
investing in one or more Trusts, this factor will
include a daily asset charge to reimburse IDS Life of
New York for the transaction charge which it has paid
to Smith Barney.
<PAGE>
The transaction charge is currently .25 percent on an annual
basis and is guaranteed to never exceed .50 percent.
Policy 2
Policy value
The value of the owner's 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 the initial net premium that the owner
has 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 the owner has 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
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 in which that subaccount invests and on other
factors detailed below. There is no guaranteed minimum subaccount
value. The owner bears the entire investment risk.
Calculation of subaccount value: The value in each subaccount on the
policy date equals the portion of the owner's initial net premium
allocated to that subaccount plus interest accrued before the policy
date, minus the portion of the monthly deduction for the first policy
month that you have allocated to that subaccount. 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
<PAGE>
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 the owner directs a
premium payment or transfers policy value into one of the subaccounts,
a certain number of accumulation units are credited to their policy for
that subaccount. Conversely, each time they take a partial surrender or
transfer value out of a subaccount, a certain number of accumulation
units are subtracted.
Accumulation units are the true measure of investment value in each
subaccount. For subaccounts investing in the fund, they're related to,
but not the same as, the net asset value of the corresponding fund. The
dollar value of each accumulation unit can rise or fall daily,
depending on the investment performance of the underlying fund, and on
certain charges. Here's how unit values are calculated:
Number of units: To calculate the number of units for a particular
subaccount, IDS Life of New York divides the owner's 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; 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 at the end
of the preceding valuation period; plus
<PAGE>
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.
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 the owner owns 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.
Accumulation unit values may fluctuate due to:
o changes in underlying fund net asset value;
o dividends distributed to the subaccount(s);
o capital gains or losses of underlying fund
portfolios;
o fund portfolio operating expenses; and/or
o mortality and expense risk fees.
(b) Furnish a specimen schedule showing the components of the
offering price of the trust's securities as at the latest
practicable date.
Policy 1
The cost of insurance for any given Policy will vary with age,
sex and health of the Insured.
Policy 2
No Policy has been offered for sale to the public.
(c) If there is any variation in the offering price of the trust's
securities to any person or classes of persons other than
underwriters, state the nature and amount of such variation
and indicate the person or classes of persons to whom such
offering is made.
Policy 1 and 2
There is no variation in offering price of interests in a
Subaccount. The cost of insurance for any given Policy will
vary with the age, sex and health of the Insured.
45. Furnish the following information with respect to any suspension of the
redemption rights of the securities issued by the trust during the
three fiscal years covered by the financial statements filed herewith:
<PAGE>
(a) by whose action redemption rights were suspended.
(b) the number of days notice given to security holders prior to
suspension of redemption rights.
(c) reason for suspension.
(d) period during which suspension was in effect.
Not applicable.
Redemption Valuation of Securities of the Trust
46. (a) Furnish the following information with respect to the method of
determining the redemption or withdrawal valuation of securities
issued by the trust:
(1) The source of quotations used to determine the value of
portfolio securities.
Net asset values as provided by the Fund's Portfolios
or value of units of the Trust as provided by the
Evaluator.
(2) Whether opening, closing, bid, asked or any other price is
used.
Net asset value or unit value as of the end of the
appropriate Valuation Period is used.
(3) Whether price is as of the day of sale or as of any other
time.
As of the end of the appropriate Valuation Period.
(4) A brief description of the methods used by registrant for
determining other assets and liabilities including accrual
for expenses and taxes (including taxes on unrealized
appreciation).
See Items 13(d), 17(a) and 18(c).
(5) Other items which registrant deducts from the net asset
value in computing redemption value of its securities.
None, other than as set forth in (4) above.
(6) Whether adjustments are made for fractions.
Not applicable.
(b) Furnish a specimen schedule showing the components of the redemption
price to the holders of the trust's securities as at the latest
practicable date.
Not applicable.
<PAGE>
Purchase and Sale of Interests to Underlying Securities from and to Security
Holders
47. Furnish a statement as to the procedure with respect to the maintenance of
a position in the underlying securities or interests in the underlying
securities, the extent and nature thereof and the person who maintains such
a position. Include a description of the procedure with respect to the
purchase of underlying securities or interests in the underlying securities
from security holders who exercise redemption or withdrawal rights and the
sale of such underlying securities and interests in the underlying
securities to other security holders. State whether the method of valuation
of such underlying securities and interests in the underlying securities
differs from that set forth in Items 44 and 46. If any item of expenditure
included in the determination of the valuation is not or may not actually
be incurred or expended, explain the nature of such item and who may
benefit from the transaction.
Policies 1 and 2
The Subaccounts will maintain positions in Fund shares or Trust units
by purchasing Fund shares and/or Trust units at net asset value with
premiums in accordance with instructions from the Owner in the
application. The Subaccounts will redeem Fund shares and/or Trust units
at net asset value for the purpose of meeting Policy obligations, or
making adjustments in reserves held in the Subaccounts. There is no
procedure for the purchase of underlying securities or interest therein
from Owners who exercise surrender rights.
V.
INFORMATION CONCERNING THE TRUSTEE OR CUSTODIAN
48. Furnish the following information as to each trustee or custodian of the
trust.
(a) Name and principal business address:
Not applicable as IDS Life of New York will serve as custodian
for the Variable Account.
(b) Form of organization.
Not applicable as IDS Life of New York will serve as custodian
for the Variable Account.
(c) State or other sovereign power under the laws of which the
trustee or custodian was organized.
Not applicable as IDS Life of New York will serve as custodian
for the Variable Account.
(d) Name of governmental supervising or examining authority.
Not applicable as IDS Life of New York will serve as custodian
for the Variable Account.
<PAGE>
49. State the basis for payment of fees or expenses of the trustee or
custodian for services rendered with respect to the trust and its
securities, and the aggregate amount thereof for the last fiscal year.
Indicate the person paying such fees or expenses. If any fees or
expenses are prepaid, state the unearned amounts.
See Item 48.
50. State whether the trustee or custodian or any other person has or may
create a lien on the assets of the trust and, if so, give full
particulars, outlining the substance of the provisions of any indenture
or agreement with respect thereto.
Not applicable.
VI.
INFORMATION CONCERNING INSURANCE OF HOLDERS OF SECURITIES
51. Furnish the following information with respect to the insurance of holders
of securities:
(a) The name and address of the insurance company.
All insurance elements of the Policies are provided by IDS
Life of New York.
(b) The types of policies and whether individual or group policies.
Policy 1
The Policy is a flexible premium variable life insurance
policy and is issued on an individual basis.
Policy 2
The policy is a flexible premium survivorship variable life
insurance policy and is issued on an individual basis.
(c) The types of risks insured and excluded.
Under the Policies the Company assumes the risk that insureds
covered by the Policies may die before anticipated and that
the charge for this mortality risk may prove insufficient. The
Company assumes an expense risk that deductions for expenses
may not be adequate. Under the Policies, the company assumes
the risks under the death benefit guarantee if the minimum
monthly premiums are timely paid.
(d) The coverage of the policies.
See Paragraph (c) of this Item.
(e) The beneficiaries of such policies and the uses to which the
proceeds of policies must be put.
<PAGE>
The recipient of the benefits of the insurance undertakings
described in Item 51(c) is either the designated primary
beneficiary, any contingent beneficiaries, or the estate of
the insured as stated in the application for the Policy. There
is no limitation on the use of the proceeds.
(f) The terms and manner of cancellation and of reinstatement.
The insurance undertakings described in Item 51(c) are
integral parts of the Policy and may not be canceled while the
Policy remains in effect. See Item 10(d) with respect to lapse
of the Policy.
(g) The method of determining the amount of premiums to be paid by
holders of securities.
Policy 1
The amount and frequency of premium payments will affect the
policy value, the Cash Surrender Value, and how long the
Policy will remain in force (including affecting whether the
Death Benefit Guarantee is in effect). After the initial
premium, the Owner may determine the amount and timing of
subsequent premium payments, subject to certain limitations.
In most cases, payment of cumulative premiums sufficient to
maintain the Death Benefit Guarantee will be required to keep
the Policy in force during at least the first several policy
years.
The initial premium is the amount of money submitted by the
Owner with the application. It is the combination of the
Scheduled Premium and any unscheduled premium.
The scheduled premium is the premium shown on the Policy Data
page of the Policy. The scheduled premium will serve only as
an indication of the Owner's intent as to the frequency and
amount of future premium payments.
The Owner may change the amount and frequency of scheduled
premium payments by written request. The Owner may also skip
scheduled premium payments. Any change in amount may be
subject to applicable tax laws and regulations.
Scheduled premiums may be paid annually, semi-annually, or
quarterly. Payment at any other interval must be approved by
IDS Life of New York. The minimum scheduled premium payment
IDS Life of New York will accept is $25. IDS Life of New York
also reserves the right to limit the amount of any increase in
scheduled premiums.
An unscheduled premium is any premium paid that is not
included with a Scheduled Premium. The Company reserves the
right to limit the number and amount of unscheduled premiums.
Currently, the maximum payment IDS Life of New York will
accept is $500,000.
In order to receive favorable tax treatment under sections 72,
101 and 7702 of the Internal Revenue Code, the premiums paid
during the life of the Policy must not exceed certain premium
guideline limitations. In order
<PAGE>
to comply with the law, IDS Life of New York can either refuse
excess premiums as they are paid, or refund premiums with
interest no later than 60 days after the Policy Anniversary in
which they were paid.
Until the insured's attained age 65, or five years from the
policy date, whichever is later, the policy will not terminate
even if the cash surrender value is insufficient to cover the
monthly deduction on a monthly date if (a) equals or exceeds
(b) where:
(a) is the sum of all premiums paid, minus any partial
surrenders, and minus any indebtedness; and
(b) is the minimum monthly premium, as shown under Policy Data
in the Policy, times the number of months since the Policy
Date, including the current month.
Minimum monthly premiums may be paid on other than a monthly
basis as long as the sum of premiums paid is at least equal to
the total required Minimum Monthly Premiums at all times.
If on a monthly date, sufficient premiums have not been paid
to maintain the Death Benefit Guarantee, an additional period
of 61 days will be allowed for the payment of a premium
sufficient to pay the required minimum monthly premiums.
Notice of such premium will be mailed to the Owner's last
known address. If the premium is not paid within this period,
the death benefit guarantee provision will no longer be in
effect and cannot be reinstated.
The minimum monthly premium will change if the specified
amount is increased or decreased or if riders are added,
changed or terminated. The new minimum monthly premium will
apply from the date of the change.
A death benefit guarantee charge is included in the monthly
deduction in the first five policy years or until the
insured's attained age 65, whichever is later. The charge will
not be taken if, as described above, the death benefit
guarantee provision is no longer in effect.
For any month that the monthly deduction is being paid for by
a Waiver of Monthly Deduction Rider attached to the policy,
the minimum monthly premium for that month will be zero.
Policy 2
Payment of premiums:
In applying for the policy, the owner decides how much they
intend to pay and how often they will make payments. During
the early policy years until the policy value is sufficient to
cover the surrender charge, IDS Life of New York requires that
the owner pay the premium minimum initial premium period in
effect.
The owner 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 the
owner's policy.
<PAGE>
The scheduled premium serves only as an indication of the
owner's intent as to the frequency and amount of future
premium payments. The owner may skip scheduled premium
payments at any time if the cash surrender value is sufficient
to pay the monthly deduction, or if the owner has paid
sufficient premium to keep the DBG-100 or the minimum initial
premium period in effect.
The owner 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 the owner has flexibility in paying premiums, the
amount and frequency of the owner's payments will affect the
policy value, cash surrender value and length of time their
policy will remain in force, as well as affect whether the
DBG-100 or the minimum initial premium period remain in
effect.
Premium limitations:
The owner may make unscheduled premium payments at any time
and in an amount of at least $50. IDS Life of New York
reserves the right to limit the number and amount of
unscheduled premium payments.
No premium payments, scheduled or unscheduled, are allowed on
or after the youngest insured's attained insurance age 100.
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 the policy date, IDS Life of New York holds 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 policy date, IDS Life of
New York will allocate the net premiums plus accrued interest
to the account(s) the owner has selected in the owner's
application. At that time, IDS Life of New York will begin to
assess the various loads, fees and charges.
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.
<PAGE>
Keeping the policy in force
This section includes a description of the policy provisions
that determines if the policy will remain in force or lapse
(terminate). It is important that the owner understands them
so the appropriate premium payments are made to ensure that
insurance coverage meets the owner's objectives.
If the owner wishes to have a guarantee that the policy will
remain in force until the youngest insured's attained
insurance age 100 regardless of investment performance, they
should pay at least the DBG-100 premium.
If the owner wishes to pay yet a lower premium and are not
concerned with a long-term guarantee that the policy will
remain in force regardless of investment performance, they can
pay premiums so that the cash surrender value on each monthly
date is sufficient to pay the monthly deduction. However,
during the minimum initial premium period, they must pay at
least the minimum initial premium until the policy value is
greater than the surrender charge and the cash surrender value
is sufficient to pay the monthly deduction. At that time the
owner may be able to reduce their premiums as long as the cash
surrender value continues to be sufficient to pay the monthly
deduction.
Death benefit guarantee to age 100
The DBG-100 provides that the policy will remain in force
until the youngest insured's attained insurance age 100 even
if the cash surrender value is insufficient to pay the monthly
deduction. The DBG-100 will remain in effect, as long as:
the sum of premiums paid minus partial surrenders minus
outstanding indebtedness
equals or exceeds
the DBG-100 premiums due since the policy date.
The DBG-100 premium is shown in the policy.
If, on a monthly date, the owner has not paid enough premiums
to keep the DBG-100 in effect, an additional period of 61 days
will be allowed for the owner to pay a premium sufficient to
bring the total up to the required minimum. If they do not pay
this amount within 61 days, the DBG-100 will terminate. If the
DBG-100 is not in effect, their policy will lapse (terminate)
if the cash surrender value is less than the amount needed to
pay the monthly deduction and the minimum initial premium
period is not in effect. Although the policy can be
reinstated, the DBG-100 cannot be reinstated.
Minimum initial premium period
To allow the owner the opportunity to increase their policy
value gradually so that the cash surrender value is sufficient
to pay the monthly deduction, they may choose to pay only the
minimum initial premium during the
<PAGE>
minimum initial premium period as long as the policy value
minus indebtedness equals or exceeds the monthly deduction.
The policy will not enter the grace period during the minimum
initial premium period as shown under Policy Date, if:
(1) on a monthly date, the policy value minus
indebtedness equals or exceeds the monthly deduction
for the policy month following such monthly date; and
(2) the sum of all premiums paid, minus any partial
surrenders, and minus any indebtedness equals or
exceeds the minimum initial premium, as shown under
Policy Data, times the number of months since the
Policy Date, including the current month.
The minimum initial period is
4 years if the youngest insured's insurance age is
20-29 3 years if the youngest insured's insurance age
is 30-39 2 years if the youngest insured's insurance
age is 40-49 1 years if the youngest insured's
insurance age is 50 and over.
Grace period
If the cash surrender value of the policy becomes less than
that needed to pay the monthly deduction and neither the death
benefit guarantee nor the minimum initial premium period is in
effect, the owner will have 61 days to pay the required
premium amount. If the required premium is not paid, the
policy will lapse.
IDS Life of New York will mail a notice to the owner's last
known address, requesting payment of the premium needed so
that the next three monthly deductions can be made. If IDS
Life of New York receives this premium before the end of the
61-day grace period, IDS Life of New York will use the payment
to pay 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 a policy lapses with outstanding indebtedness, any excess
of the outstanding indebtedness over the premium paid
generally will be taxable to the owner. If the last surviving
insured dies during the grace period, any overdue monthly
deductions will be deducted from the death benefit.
(h) The amount of aggregate premiums paid to the insurance
company during the fiscal year.
Policy 1
In 1996, VUL-NY had contract premiums of $13,797,579. This is
after the premium expense charge, and other expenses.
Policy 2
No policy is currently being sold.
<PAGE>
(i) Whether any person other than the insurance company receives
any part of such premiums, the name of each such person and
the amount involved, and the nature of the services rendered
therefor.
Policy 1
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.
Sales Charge: A sales charge of 2.5% 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.
Premium Tax Charge: A charge of 1.0% of each premium payment
will be deducted to compensate IDS Life of New York for paying
state premium taxes imposed by the state of New York on
premiums received by insurance companies.
Also, deductions are made from the Policy Value after the
premiums have been allocated to the Subaccounts. However, no
person other than IDS Life of New York receives the amounts
deducted for the mortality and expense risk charge, the
mortality charges, or the minimum death benefit guarantee risk
charge. IDS Life of New York may, from time to time, enter
into reinsurance treaties with other insurers whereby these
insurers may agree to reimburse IDS Life of New York for
mortality expenses. However, any such arrangements do not
affect the Policy.
Policy 2
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. IDS Life of New
York deducts this charge from each premium payment. The amount
remaining after the deduction called net premium, is credited
to the account(s) you have selected. The premium expense
charge has three parts:
Sales Charge: A sales charge of 7.25% of all premiums paid.
Partially compensates IDS Life of New York for expenses in
distributing the Policy, including agents' commissions,
advertising and printing of prospectuses and sales literature.
Premium tax charge: 1.0% 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.
Federal tax charges: 1.25% of each premium payment.
Compensates IDS Life of New York for paying Federal taxes
resulting from the sale of the policy and is a reasonable
charge in relation to IDS Life of New York's federal tax
burden. IDS Life of New York reserves the right to change the
amount of this charge if applicable federal law changes IDS
Life of New York's federal tax burden subject to the approval
of the Superintendent of Insurance.
<PAGE>
(j) The substance of any other material provisions of any
indenture or agreement of the trust relating to insurance.
Not applicable.
VII .
POLICY OF REGISTRANT
52. (a) Furnish the substance of the provisions of any indenture or
agreement with respect to the conditions upon which and the
method of selection by which particular portfolio securities must
or may be eliminated from the assets of the trust or must or may
be replaced by other portfolio securities. If an investment
adviser or other person is to be employed in connection with such
selection, elimination or substitution, state the name of such
person, the nature of any affiliation to the depositor, trustee
or custodian, and any principal underwriter, and the amount of
remuneration to be received for such services. If any particular
person is not designated in the indenture or agreement, describe
briefly the method of selection of such person.
If shares of any Fund Portfolio and/or units of the Trust
should not be available 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 in view of the purposes of the Subaccount, shares
of another registered, open-end management investment company
or units of another unit investment trust may be substituted
for Fund shares or Trust units, respectively, held in the
Subaccount. If deemed by IDS Life of New York to be in the
best interest of persons having voting rights under the
Policy, the Subaccount may be operated as a management company
under the Investment Company Act of 1940 or it may be
deregistered under such Act in the event 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 the 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 Securities and Exchange Commission or the
insurance department of the state of New York. IDS Life of New
York will notify Owners within five (5) days of any
substitution or change.
(b) Furnish information with respect to each transaction involving
the elimination of any underlying security during the period
covered by the financial statements filed herewith.
Not applicable.
(c) Describe the policy of the trust with respect to the substitution
and elimination of the underlying securities of the trust with
respect to:
(1) the grounds for elimination and substitution;
(2) the type of securities which may be substituted for any
underlying security;
<PAGE>
(3) whether the acquisition of such substituted security or
securities would constitute the concentration of investment
in a particular industry or group of industries or would
conform to a policy of concentration of investment in a
particular industry or group of industries;
(4) whether such substituted securities may be the securities of
any other-investment company; and
(5) The substance of the provisions of any indenture or
agreement which authorize or restrict the policy of
the registrant in this regard.
See Item 52(a).
(d) Furnish a description of any policy (exclusive of policies
covered by paragraphs (a) and (b) herein) of the trust which
is deemed a matter of fundamental policy and which is elected
to be treated as such.
None.
Regulated Investment Company
53. (a) State the taxable status of the trust.
The Policies are designed for use by individuals in meeting
their insurance and financial security needs. The ultimate
effect of Federal income taxes on the Policy Value, on benefit
payments and on the economic benefit to the Policy Owner or
Beneficiary depends on both IDS Life of New York's tax status
and upon the tax status of the individual concerned.
IDS Life of New York is taxed as a life insurance company
under the Code. Since the Variable Account is not a separate
entity from IDS Life of New York for tax purposes, and its
operations form a part of IDS Life of New York, it will not be
taxed separately as a "regulated investment company" under
Subchapter M of the Code.
(b) State whether the trust qualified for the last taxable year as
a regulated investment company as defined in Section 851
Internal Revenue Code of 1954, and state its present intention
with respect to such qualification during the current taxable
year.
Not applicable.
VIII .
FINANCIAL AND STATISTICAL INFORMATION
54. If the trust is not the issuer of periodic payment plan certificates,
furnish the following information with respect to each class or series
of its securities.
Not applicable.
<PAGE>
55. If the trust is the issuer of periodic payment plan certificates, a
transcript of a hypothetical account shall be filed in approximately
the following form on the basis of the certificate calling for the
smallest amount of payments. The schedule shall cover a certificate of
the type currently being sold assuming that such certificate had been
sold at a date approximately ten years prior to the date of
registration or at the approximate date of organization of the trust.
Policy 1
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 before Mar 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 funds as a whole but differed across individual funds.
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.)
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:
<PAGE>
o the daily investment management fee paid by the funds, assumed to
be equivalent to an annual rate of 0.7% of the fund's 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 fund's average daily
net assets for direct expenses incurred by the fund.
The nonadvisory expense charge for IDS Life Series Fund is capped by
IDS Life of New York at 0.1%, even though actual expenses on the IDS
Life Series Fund - Government Securities Portfolio ranged up to 0.18%,
IDS Life Series Fund - Money Market Portfolio ranged up to 0.23% and
IDS Series Fund - International Equity Portfolio ranged up to 0.37%.
Although IDS Life of New York reserves the right to discontinue capping
these expenses, IDS Life of New York's present intent is to continue
the cap indefinitely until actual expenses are less than the cap.
Should IDS Life of New York discontinue the cap prior to that time, the
policy values and the death benefits in the tables generally would be
less. Other expenses for the period ended Dec. 31, 1996 were 0.09% for
Putnam VT New Opportunities Fund. For AIM V.I. Growth and Income Fund
other expenses (annualized) were 0.13% for the period ended Dec. 31,
1996.
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 -1.69%, 4.21% and 10.11%, 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 funds will have to
earn more than they do now in order to produce the death benefits and
policy values illustrated.
<TABLE>
<CAPTION>
Illustration Policies purchased before May 1, 1993
- ---------------------------------------------------------------------------------------------------------------------
Initial specified amount Male age 35 Current costs assumed
$100,000 Death benefit nonsmoker annual premium $900
Option 1
- ---------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) assuming Policy value (1)(2) assuming Cash surrender value (1)(2)
accumul-ated hypothetical gross annual hypothetical gross annual assuming hypothetical gross
with investment return of investment return of annual investment return of
End of annual
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 $ 618 $ 662 $ 705 $ 0 $ 14 $ 58
2 1,937 100,000 100,000 100,000 1,226 1,352 1,483 499 625 756
3 2,979 100,000 100,000 100,000 1,814 2,061 2,329 1,028 1,276 1,544
4 4,073 100,000 100,000 100,000 2,381 2,790 3,250 1,537 1,945 2,406
5 5,222 100,000 100,000 100,000 2,929 3,538 4,254 2,028 2,637 3,353
6 6,428 100,000 100,000 100,000 3,445 4,297 5,338 2,724 3,576 4,617
7 7,694 100,000 100,000 100,000 3,942 5,077 6,522 3,402 4,536 5,982
8 9,024 100,000 100,000 100,000 4,410 5,869 7,806 4,049 5,509 7,446
9 10,240 100,000 100,000 100,000 4,859 6,686 9,212 4,679 6,506 9,032
10 11,886 100,000 100,000 100,000 5,280 7,516 10,742 5,280 7,516 10,742
11 13,425 100,000 100,000 100,000 5,673 8,362 12,409 5,673 8,362 12,409
12 15,042 100,000 100,000 100,000 6,038 9,224 14,229 6,038 9,224 14,229
13 16,739 100,000 100,000 100,000 6,365 10,093 16,208 6,365 10,093 16,208
14 18,521 100,000 100,000 100,000 6,665 10,979 18,375 6,665 10,979 18,375
15 20,392 100,000 100,000 100,000 6,929 11,875 20,741 6,929 11,875 20,741
16 22,356 100,000 100,000 100,000 7,157 12,780 23,328 7,157 12,780 23,328
17 24,419 100,000 100,000 100,000 7,338 13,686 26,152 7,338 13,686 26,152
18 26,585 100,000 100,000 100,000 7,473 14,593 29,242 7,473 14,593 29,242
19 28,859 100,000 100,000 100,000 7,552 15,492 33,621 7,552 15,492 33,621
20 31,247 100,000 100,000 100,000 7,564 16,373 36,316 7,564 16,373 36,316
age 60 45,102 100,000 100,000 100,000 6,768 20,655 60,169 6,768 20,655 60,169
age 65 62,785 100,000 100,000 113,472 3,434 23,746 96,010 3,434 23,746 93,010
</TABLE>
<PAGE>
(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>
<CAPTION>
Policies purchased on or after May 1, 1993
Illustration and before November 20, 1997
- ---------------------------------------------------------------------------------------------------------------------
Initial specified amount Male age 35 Current costs assumed
$100,000 Death benefit nonsmoker annual premium $900
Option 1
- ---------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) assuming Policy value (1)(2) assuming Cash surrender value (1)(2)
accumul-ated hypothetical gross annual hypothetical gross annual assuming hypothetical gross
with investment return of investment return of annual investment return of
End of annual
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 $ 618 $ 662 $ 705 $ 0 $ 14 $ 58
2 1,937 100,000 100,000 100,000 1,226 1,352 1,483 503 628 760
3 2,979 100,000 100,000 100,000 1,814 2,061 2,329 1,032 1,279 1,547
4 4,073 100,000 100,000 100,000 2,381 2,790 3,250 1,540 1,949 2,409
5 5,222 100,000 100,000 100,000 2,929 3,538 4,254 2,029 2,639 3,355
6 6,428 100,000 100,000 100,000 3,456 4,308 5,350 2,735 3,587 4,629
7 7,694 100,000 100,000 100,000 3,965 5,101 6,547 3,424 4,560 6,007
8 9,024 100,000 100,000 100,000 4,452 5,914 7,854 4,091 5,554 7,494
9 10,420 100,000 100,000 100,000 4,915 6,747 9,279 4,735 6,567 9,099
10 11,886 100,000 100,000 100,000 5,352 7,598 10,833 5,352 7,598 10,833
11 13,425 100,000 100,000 100,000 5,763 8,467 12,529 5,763 8,467 12,529
12 15,042 100,000 100,000 100,000 6,149 9,356 14,384 6,149 9,356 14,384
13 16,739 100,000 100,000 100,000 6,508 10,263 16,411 6,508 10,263 16,411
14 18,521 100,000 100,000 100,000 6,837 11,188 18,628 6,837 11,188 18,628
15 20,392 100,000 100,000 100,000 7,134 12,128 21,053 7,134 12,128 21,053
16 22,356 100,000 100,000 100,000 7,397 13,082 23,707 7,397 13,082 23,707
17 24,419 100,000 100,000 100,000 7,625 14,050 26,615 7,625 14,050 26,615
18 26,585 100,000 100,000 100,000 7,811 15,027 29,800 7,811 15,027 29,800
19 28,859 100,000 100,000 100,000 7,952 16,008 33,291 7,952 16,008 33,291
20 31,247 100,000 100,000 100,000 8,042 16,992 37,120 8,042 16,992 37,120
age 60 45,102 100,000 100,000 100,000 7,565 21,792 62,844 7,565 21,792 62,844
age 65 62,785 100,000 100,000 128,223 4,981 25,956 105,101 4,981 25,956 105,101
</TABLE>
(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.
<PAGE>
<TABLE>
<CAPTION>
Illustration Policies purchased on or after November
20, 1997
- ----------------------------------------------------------------------------------------------------------------------
Initial specified amount Male age 35 Current costs assumed
$100,000 Death benefit nonsmoker annual premium $900
Option 1
- ----------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) assuming Policy value (1)(2) assuming Cash surrender value (1)(2)
accumul-ated hypothetical gross annual hypothetical gross annual assuming hypothetical gross
with investment return of investment return of annual investment return of
End of annual
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 $ 621 $ 665 $ 709 $ 0 $ 7 $ 61
2 1,937 100,000 100,000 100,000 1,232 1,358 1,490 508 635 766
3 2,979 100,000 100,000 100,000 1,823 2,071 2,340 1,040 1,288 1,557
4 4,073 100,000 100,000 100,000 2,393 2,802 3,265 1,552 1,961 2,424
5 5,222 100,000 100,000 100,000 2,943 3,554 4,273 2,043 2,655 3,374
6 6,428 100,000 100,000 100,000 3,473 4,328 5,374 2,752 3,607 4,653
7 7,694 100,000 100,000 100,000 3,984 5,125 6,576 3,444 4,584 6,036
8 9,024 100,000 100,000 100,000 4,474 5,942 7,889 4,113 5,582 7,529
9 10,420 100,000 100,000 100,000 4,942 6,782 9,324 4,762 6,602 9,144
10 11,886 100,000 100,000 100,000 5,384 7,639 10,888 5,384 7,639 10,888
11 13,425 100,000 100,000 100,000 5,800 8,516 12,595 5,800 8,516 12,595
12 15,042 100,000 100,000 100,000 6,192 9,413 14,462 6,192 9,413 14,462
13 16,739 100,000 100,000 100,000 6,555 10,328 16,503 6,555 10,328 16,503
14 18,521 100,000 100,000 100,000 6,889 11,261 18,735 6,889 11,261 18,735
15 20,392 100,000 100,000 100,000 7,194 12,213 21,179 7,194 12,213 21,179
16 22,356 100,000 100,000 100,000 7,465 13,180 23,854 7,465 13,180 23,854
17 24,419 100,000 100,000 100,000 7,699 14,160 26,784 7,699 14,160 26,789
18 26,585 100,000 100,000 100,000 7,893 15,149 29,994 7,893 15,149 29,994
19 28,859 100,000 100,000 100,000 8,041 16,145 33,512 8,041 16,145 33,512
20 31,247 100,000 100,000 100,000 8,141 17,145 37,373 8,141 17,145 37,373
age 60 45,102 100,000 100,000 100,000 7,714 22,042 63,312 7,714 22,042 63,312
age 65 62,785 100,000 100,000 129,185 5,182 26,336 105,889 5,182 26,336 105,889
</TABLE>
(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.
<PAGE>
<TABLE>
<CAPTION>
Illustration
- ---------------------------------------------------------------------------------------------------------------------
Initial specified amount Male age 35 Guaranteed costs assumed
$100,000 Death benefit nonsmoker annual premium $900
Option 1
- ---------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) assuming Policy value (1)(2) assuming Cash surrender value (1)(2)
accumul-ated hypothetical gross annual hypothetical gross annual assuming hypothetical gross
with investment return of investment return of annual investment return of
End of annual
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 $ 618 $ 662 $ 705 $ 0 $ 14 $ 58
2 1,937 100,000 100,000 100,000 1,226 1,352 1,483 503 628 760
3 2,979 100,000 100,000 100,000 1,814 2,061 2,329 1,032 1,279 1,547
4 4,073 100,000 100,000 100,000 2,381 2,790 3,250 1,540 1,949 2,409
5 5,222 100,000 100,000 100,000 2,929 3,538 4,254 2,029 2,639 3,355
6 6,428 100,000 100,000 100,000 3,445 4,297 5,338 2,724 3,576 4,617
7 7,694 100,000 100,000 100,000 3,942 5,077 6,522 3,402 4,536 5,982
8 9,024 100,000 100,000 100,000 4,410 5,869 7,806 4,049 5,509 7,446
9 10,420 100,000 100,000 100,000 4,859 6,686 9,212 4,679 6,506 9,032
10 11,886 100,000 100,000 100,000 5,280 7,516 10,742 5,280 7,516 10,742
11 13,425 100,000 100,000 100,000 5,673 8,362 12,409 5,673 8,362 12,409
12 15,042 100,000 100,000 100,000 6,038 9,224 14,229 6,038 9,224 14,229
13 16,739 100,000 100,000 100,000 6,365 10,093 16,208 6,365 10,093 16,208
14 18,521 100,000 100,000 100,000 6,665 10,979 18,375 6,665 10,979 18,375
15 20,392 100,000 100,000 100,000 6,929 11,875 20,741 6,929 11,875 20,741
16 22,356 100,000 100,000 100,000 7,146 12,770 23,318 7,146 12,770 23,318
17 24,419 100,000 100,000 100,000 7,327 13,675 26,141 7,327 13,675 26,141
18 26,585 100,000 100,000 100,000 7,462 14,581 29,230 7,462 14,581 29,230
19 28,859 100,000 100,000 100,000 7,541 15,480 32,608 7,541 15,480 32,608
20 31,247 100,000 100,000 100,000 7,554 16,360 36,301 7,554 16,360 36,301
age 60 45,102 100,000 100,000 100,000 6,486 20,369 61,016 6,486 20,369 61,056
age 65 62,785 100,000 100,000 124,007 2,602 22,855 101,645 2,602 22,855 101,645
</TABLE>
(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.
Policy 2
No certificates are currently being sold.
56. If the trust is the issuer of periodic payment plan certificates,
furnish by years for the period covered by the financial statements
filed herewith in respect of certificates sold during such period, the
following information for each fully paid type of each installment
payment type of periodic payment plan certificate currently being
issued by the trust.
Not applicable.
57. If the trust is the issuer of periodic payment plan certificates,
furnish by years for the period covered by the financial statements
filed herewith the following information for each installment payment
type of periodic payment plan certificate currently being issued by the
trust.
Not applicable.
<PAGE>
58. If the trust is the issuer of periodic payment plan certificates,
furnish the following information for each installment type of periodic
payment plan certificate outstanding as at the latest practicable date.
Not applicable.
59. Financial Statements:
Financial Statements of the Trusts
Financial Statements of the Accounts
Policy 1
The financial statements of IDS Life of New York at Dec. 31, 1996 and
1995, and for each of the three years in the period ended Dec. 31,
1996, and the individual and combined financial statements of the
segregated asset subaccounts of IDS Life of New York Account 8 for
Flexible Premium Variable Life Insurance, at Dec. 31, 1996, and for
each of the three years in the period ended Dec. 31, 1996, except for
the following subaccounts: YIT subaccount which is for each of the two
years in the period ended Dec. 31, 1996, and the period Oct. 28, 1994
(commencement of operations) to Dec. 31, 1996, YGI and YNO subaccounts
which are for the period Nov. 22, 1996 (commencement of operations) to
Dec. 31, 1996, appearing in the 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 firm
as experts in accounting and auditing.
Policy 2
No financial statements have been filed for the Variable Account
because it has not yet commenced operation, has no assets or
liabilities, and has received no income nor incurred any expense.
Financial Statements of the Depositor [to be filed by amendment]
<PAGE>
EXHIBITS
A. Copies of all exhibits required by paragraph A of instructions for Exhibits
to Form N-8B-2.
(1) Resolution of Board of Directors of IDS Life of New York authorizing
the Trust filed electronically as Exhibit 1.A.(1) to Registrant's Form
N-8B-2 Amendment No. 3, is incorporated herein by reference.
(2) Not applicable.
(3) (a) Not applicable.
(b) 1) Explanation of New York Sales Agreements. Filed as an
Exhibit 1 to Amendment No. 3 to the Registration Statement
to form N-8B-2 File No. 811-05213.*
2) Form of Personal Financial Planner's Agreement with IDS
Financial Services Inc. Filed as an Exhibit to Amendment No.
3 to the Registration Statement to form N-8B-2 File No.
811-05213.*
3) Form of Personal Financial Planner's Agreement with IDS Life
Insurance Company of New York. Filed as an Exhibit to
Amendment No. 3 to the Registration Statement to form N-8B-2
File No. 811-05213.*
4) Form of "Field Trainer's" Rider to Personal Financial
Planner's Agreement. Filed as an Exhibit to Amendment No. 3
to the Registration Statement to form N-8B-2 File No.
811-05213.*
5) Form of District Manager's Rider to Personal Financial
Planner's Agreement. Filed as an Exhibit to Amendment No. 3
to the Registration Statement to form N-8B-2 File No.
811-05213.*
6) Form of "New York District Manager-Insurance" Rider to
Personal Financial Planner's Agreement. Filed as an Exhibit
to Amendment No. 3 to the Registration Statement to form
N-8B-2 File No. 811-05213.*
7) Form of Division Manager's Agreement with IDS Financial
Services Inc. Filed as an Exhibit to Amendment No. 3 to the
Registration Statement to form N-8B-2 File No. 811-05213.*
8) Form of "New York Division Manager- Insurance" Rider to
Division Manager's Agreement with IDS Financial Services
Inc. Filed as an Exhibit to Amendment No. 3 to the
Registration Statement to form N-8B-2 File No. 811-05213.*
9) Form of Field President Agreement with American Express
Financial Advisors Inc. Filed herewith as an Exhibit to
Amendment No. 4 to the Registration Statement to form N-8B-2
File No. 811-05213.
10) Form of Recruiting and Training Manager License Agreement
with IDS Life Insurance Company of New York. Filed herewith
as an Exhibit to Amendment No. 4 to the Registration
Statement to form N-8B-2 File No. 811-05213.
<PAGE>
11) Form of Group Vice President Agreement with American Express
Financial Advisors Inc. Filed herewith as an Exhibit to
Amendment No. 4 to the Registration Statement to form N-8B-2
File No. 811-05213.
12) Form of IDS Paraplanner License Agreement with IDS Life
Insurance Company of New York. Filed herewith as an Exhibit
to Amendment No. 4 to the Registration Statement to form
N-8B-2 File No. 811-05213.
13) Form of Variable Annuity and Life Insurance Distribution
Agreement. Filed herewith as an exhibit to Amendment No. 4
to the Registration Statement to form N-8B-2 File No.
811-05213.
Policy 1
Flexible Premium Variable Life Insurance Compensation: IDS
Life of New York. Filed as an Exhibit for Policy 1 to
Amendment No. 3 to the Registration Statement to form N-8B-2
File No. 811-05213.*
Policy 2
To be filed by amendment.
(4) Not applicable.
(5) (a) Flexible Premium Variable Life Insurance Policy. Filed as an
Exhibit for Policy 1 to Amendment No. 3 to the Registration
Statement to form N-8B-2 File No. 811-05213.*
(b) Flexible Premium Survivorship Variable Life Insurance Policy
Filed herewith as an Exhibit for Policy 2 to Amendment No. 4 to
Registration Statement to form N-8B-2 File No. 811-05213.
(6) (a) Certificate of Incorporation of IDS Life of New York. Filed as an
Exhibit to Amendment No. 3 to the Registration Statement to form
N-8B-2 File No. 811-05213.*
(b) By-laws of IDS Life of New York. Filed as an Exhibit to Amendment
No. 3 to the Registration Statement to form N-8B-2 File No.
811-05213.*
(7) Not applicable.
(8) (a) Investment Management and Services Agreement between IDS Life
Insurance Company and IDS Life Series Fund, Inc. Filed as an
Exhibit to Amendment No. 3 to the Registration Statement to form
N-8B-2 File No. 811-05213.*
(b) Investment Advisory Agreement between IDS Life Insurance Company
and IDS. Filed as an Exhibit to Amendment No. 3 to the
Registration Statement to form N-8B-2 File No. 811-05213.*
<PAGE>
(c) Reference Trust Indenture among Shearson Lehman Brothers Inc.,
the Bank of New York and Standard & Poors Corporation relating to
the Shearson Lehman Brothers Stripped ("Zero Coupon") U.S.
Treasury Securities Fund. Standard Terms and Conditions of Trust
relating to the Shearson Lehman Brothers Stripped ("Zero Coupon")
U.S. Treasury Securities Fund. Filed as an Exhibit to Amendment
No. 3 to the Registration Statement to form N-8B-2 File No.
811-05213.*
(d) Standard Terms and Conditions of Trust relating to the Shearson
Lehman Brothers Stripped ("Zero Coupon") U.S. Treasury Securities
Fund. Filed as an Exhibit for Policy 1 to Amendment No. 3 to the
Registration Statement to form N-8B-2 File No. 811-05213.*
(e) Participation Agreement between AIM Variable Insurance Funds,
Inc., AIM Distributors, Inc., and IDS Life Insurance Company of
New York, on behalf of itself and its separate accounts and
American Express Financial Advisors Inc. Filed as an Exhibit to
Amendment No. 4 to the Registration Statement to form N-8B-2 File
No. 811-05213.
(f) Participation Agreement between IDS Life Insruance Company of New
York and Putnam Capital Manager Trust and Putnam Mutual Funds
Corp. filed herewith as an Exhibit to Amendment No. 4 to
Registration Statement to form N-8B-2 File No. 811-05213.
(g) Copy of Addendum to Investment Advisory Agreement dated January
1, 1995 between IDS Life Insurance Company and American Express
Financial Corporation. Filed electronically herewith as an
Exhibit to the Registration Statement to form N-8B-2 File No.
811-05213.
(h) Copy of Addendum to Investment Management and Services Agreement
dated October 28, 1994 between IDS Life Series Fund, Inc. and IDS
Life Insurance Company. Filed electronically herewith as an
Exhibit to the Registration Statement to form N-8B-2 File No.
811-05213.
(9) None.
(10) (a) Application form for the Flexible Premium Variable Life Insurance
Policy.*
(b) Application form for Life and Disability Income Insurance filed
electronically herewith.
(11) Description of Transfer and Redemption Procedures and Method of
Conversion to Fixed Benefit Policies. Filed as an Exhibit to Amendment
No. 3 to the Registration Statement to form N-8B-2 File No.
811-05213.*
<PAGE>
(12) Director's Power of Attorney dated March 12, 1997. Filed
electronically herewith as an Exhibit to Amendment No. 4 to the
Registration Statement to form N-8B-2 File No. 811- 05213.
B. (1) Not applicable.
(2) Not applicable.
C. Not applicable.
* All of these exhibits are incorporated by reference to Amendment No. 3 to the
Registration Statement to form N-8B-2 File No. 811-05213.
<PAGE>
Pursuant to the requirements of the Investment Company Act of 1940, the
depositor of the Registrant has caused this Registration Statement to
be duly signed on behalf of the Registrant in Minneapolis, Minnesota on
the 12th day of December, 1997.
IDS LIFE OF NEW YORK ACCOUNT 8
BY IDS LIFE INSURANCE COMPANY
OF NEW YORK (Depositor)
By /s/ Richard W. Kling*
Richard W. Kling
By:
Mary Ellyn Minenko
Attest:
William A. Stoltzmann
Counsel and Assistant Secretary
IDS Life Insurance Company of New York
*Signed pursuant to Directors' Power of Attorney dated March 26, 1997 and is
filed electronically herewith.
EXHIBIT INDEX
Exhibit
3(b)(9) Field Vice President Agreement
3(b)(10) Recruiting and Training Manager License Agreement
3(b)(11) Group Vice President Agreement
3(b)(12) IDS Paraplanner License Agreement
3(b)(13) Variable Annuity and Life Insurance Distribution Agreement
5(b) Flexible Premium Survivorship Variable Life Insurance Policy
8(e) Participation Agreement
8(f) Participation Agreement
8(g) Addendum to Investment Advisory Agreement
10(b) Life and Disability Income Insurance Application
12 IDS Life Insurance Company of New York Power of Attorney
American Express Financial Advisors Inc.
Field Vice President Agreement
This is an Agreement, made at Minneapolis, Minnesota, by and between American
Express Financial Advisors Inc. ("Company") and you,
(Print Full Name)
executed and effective as of the date shown on the last line of this Agreement.
It defines your relationship with Company as a Field Vice President. Both you
and Company promise to comply with the terms of this Agreement and any properly
executed Riders to this Agreement.
Section I--Definitions
For purposes of this Agreement, the terms listed below have the special meanings
shown.
(a) "Company" means American Express Financial Advisors Inc.
(b) "Affiliate" means any partnership, business, trust, company or corporation
affiliated with Company at any time while this Agreement is in effect.
(c) "Personal Financial Advisor or Advisor" means Personal Financial Advisor,
Personal Financial Planner, and Sales Representative.
(d) "District Manager" means a person who has executed a District Manager's
Rider to an Advisor's Agreement with Company.
(e) "Field Vice President" means a person who has executed a Division
Manager's, Division Vice President's or Field Vice President's Agreement
with Company.
(f) "Certificates" means the face amount Certificates of IDS Certificate
Company and contractual plan Certificates of any other contractual plan.
(g) "Stock" means the capital Stock of registered investment companies.
(h) "Services" means financial planning, advisory, securities brokerage, tax or
other financial Services.
(i) "Products" means Certificates, Stock, other securities or investments,
lending products, life insurance and annuity policies and contracts, and
other insurance products.
<PAGE>
(j) "Issuer" means the company or entity that issues a Product or Service
distributed or offered by Company itself or by Company as the agent of the
another company or as the branch manager of IDS Life Insurance Company of
New York.
(k) "Records and Materials" means all records, files, manuals, blanks, forms,
materials, supplies, stationery, literature, seminar materials, computer
software, licenses, papers and books that Company or an Issuer furnishes or
leases to you for use, with or without charge, or that you create or
prepare, including notes, memos and works of authorship, in connection with
the performance of this Agreement.
(l) "Compensation Plan" means the rules and policies as amended and published
from time to time that are related to items (1), (2) and (3) below and to
other matters.
1. the assignment or reassignment of territory or Client accounts,
2. the payment of salaries, bonuses and other fees or compensation, and
3. the imposition of charge-backs.
(m) "Client" means a person or entity who (1) purchases or holds a Product or
Service acquired from or through Company or an Affiliate or one of their
Advisors with consent of Company or the Affiliate, or (2) authorized
Company, and Affiliate or one of their Advisors to make personal financial
planning presentations to it or its employees or members, or (3) is a
member of a Client's household.
Section II--Appointment
Company hires you as a Field Vice President to supervise the Company sales force
of Personal Financial Advisors and District Managers in the territory assigned
to you in the connection with the sale and servicing of insurance policies and
annuities designated by the Company and the Products and Services distributed or
offered by Company to Clients and the servicing of such Company Clients in the
territory assigned to you, but without exclusive rights in that territory.
Company additionally hires you as a Field Vice President to act as the general
sales manager for the territory assigned to you and to directly supervise the
activities of the District Managers employed in the territory assigned to you.
Section III--Business Activities of Paraplanner
You agree to devote all of your working time and effort, to the best of your
abilities, to performing your duties as a Field Vice President under this
Agreement with Company and under any similar agreement with any Affiliate. You
will oversee and/or participate in the recruiting, training, maintenance and
supervision of a sales force of Personal Financial Advisors and District
Managers operating under agreements with Company or an Affiliate or Issuer. You
will also act as an instructor at any training school designated by Company and
provide such services as may
<PAGE>
be requested by Company. You will, during your employment under this Agreement,
act and perform your duties and responsibilities in line with the directions of
Company. You will not exercise nor attempt to exercise any greater control over
the Advisors and District Managers of Company or an Affiliate than is authorized
by such Company.
Section IV--Status of Field Vice President
You are an employee of Company, but nothing contained in this Agreement can be
interpreted as creating an employer-employee relationship or an agency
relationship between you and any Advisor or District Manager of Company or an
Affiliate or between you and any Issuer. You will pay all your expenses and will
comply with all applicable laws and regulations. You will secure all licenses or
registrations required by law or Company and maintain a surety or fidelity bond
satisfactory to Company This Agreement will terminate upon cancellation or
non-renewal of any license, registration or bond which you are required to have
by the terms of this Agreement.
Section V--Undertakings by Field Vice President
(a) Violation of Company's Interests. You will not, without written consent of
Company, use any information you acquired while this Agreement was in force
in a manner adverse to the interests of Company, an Affiliate or Issuer.
You also will not:
(1) Do any act to damage the goodwill of Company, an Affiliate or Issuer;
(2) Encourage or induce any person to terminate an agreement with Company,
an Affiliate or Issuer without Company's consent;
(3) Encourage or reduce any Client to sell, surrender or redeem any Product
or Service distributed or offered by Company, an Affiliate or Issuer
without Company's consent;
(4) Do any act which may cause a Client or prospective Client of a Product
or Service to refrain from purchasing or making purchase payments
thereon.
All of the above provisions apply while the Agreement is in effect and after it
ends.
(b) Bonds, Licenses and Registrations. You will not allow any Advisor or
District Manager to seek any applications or any Clients for Products or
Services until Advisor or District Manager has secured all licenses or
registrations required by law or Company, obtained a surety or fidelity
bond satisfactory to Company and complied with all other requirements of
Company, an Affiliate or Issuer that related to their activities under
their agreements.
(c) Full Disclosure. In dealing with Clients or prospective Clients, you will
fully explain the terms of Products or Services, not make any untrue
statements and state all relevant facts. You will also take steps to
prevent and promptly advise Company of the failure of an Advisor or
District Manager to make a full disclosure.
<PAGE>
(d) Policies of Company. You will comply with all rules, regulations and
policies of Company, an Affiliate or Issuer that apply to your activities
under this Agreement.
(e) Reports, Collections and Remittances.
(1) Promptly deliver premium receipts and policies or contracts originating
from applications solicited for life insurance and annuities designated
by Company, but only when applicant appears to be in good health and
the initial premium (if required) has been duly paid, and other
receipts and policies or contracts as required by Company or Issuer.
(2) Collect and immediately report and remit to Company, an Affiliate or
Issuer any initial premiums and any payments you receive for Products
or Services and any other money or property you receive on behalf of
Company, an Affiliate or Issuer.
(3) Send payments, money or property you collect to Company, an Affiliate
or Issuer without commingling it with your own money or property.
(f) You will take steps to prevent any activity or practice on the part of an
Advisor or District Manager that is in notation of that Advisor's or
District Manager's agreement with Company or with Company's rules, policies
or procedures. You also will promptly notify Company about any such
activity or practice.
(g) Authority Limited. You cannot alter or change provisions of an Product or
Service distributed by Company or through the Company field force. You also
cannot incur any liability or expense on behalf of Company, an Affiliate or
any Issuer.
(h) Any applications for a Product or Service and any business you submit is
subject to acceptance or rejection by the corporate office of Company in
Minneapolis, Minnesota and the issuer.
(i) In consideration for your receiving any combination of salary, expense
allowance and eligibility for bonuses you will be responsible for such
proportionate share, as set forth in the Compensation Plan, of any
training-period Salary (including any salary as a temporary employee) and
other recruiting and new advisor training expenses incurred with respect to
Personal Financial Advisors of Company or an Affiliate assigned to your
supervision.
(j) Debit Balance of an Advisor or District Manager. You will be responsible
for such proportionate share, as set forth in the Compensation Plan, of any
debit balance of, or advance or loan made to an Advisor or District Manager
who terminates, whether associated with Company or an Affiliate or Issuer,
who was subject to your supervision pursuant to this Agreement, of Company
is unable to recoup same from such an Advisor or District Manager.
<PAGE>
Section VI--compensation
(a) Salaries, Bonuses, and Other Fees or Compensation. Except as hereinafter
provided in this Agreement, you will be entitled to any combination of
salary, fees, and eligible for bonuses and other compensation in accordance
with the rules and policies set forth in the Compensation Plan and on such
other basis as Company will designate from time to time. Any compensation
paid pursuant to this Agreement and any riders to it will constitute
payment in full for all services rendered to Company under this Agreement
and will be subject to applicable provisions of this Agreement. Any
expenses in rendering such services will be paid by you unless the contrary
is specifically authorized in writing by an officer of Company.
(b) Special Services Compensation. From time to time, Company may direct you to
act as an instructor at a training school, as a field trainer or perform
other occasional services. These services must be carried out at the times
and places Company designates, under Company direction and control.
Additional compensation, if any, for such services will be as set forth in
the Compensation Plan. In the event of termination of this Agreement for
any reason, you will receive no such additional compensation with respect
to the period subsequent to such termination.
(c) You are not entitled to receive any compensation for any period or during
any period for which you:
(1) Received benefits under Company's Disability Income Insurance Plan for
Field Vice Presidents, or
(2) Would have received benefits if you had been covered by the Plan.
Company will determine whether your disability is temporary or total and
permanent based on proof submitted.
(d) Advances. Company may charge to your account any amounts advanced to or
paid on your behalf by Company.
(e) Right of Offset. Company has right to apply any amount payable by Company
to you against any debt you owe to Company or an Affiliate.
(f) You hereby agree to and authorize the assignment of any debt you owe
Company to any Affiliate or Issuer. You also agree to repay any assigned
debt to the assignee.
(g) Compensation Statements. Except for clerical error and undisclosed material
facts, the regular compensation statement Company issues to you is
considered to be an accurate and complete record of:
<PAGE>
(1) All the amounts Company owes you, and
(2) All accounts between you and Company purporting to be covered by that
statement.
(h) Settlement on the basis of these regular statements constitutes full
satisfaction and agreement between you and Company about the amounts and
accounts defined just above. The only exceptions occur in the case of a
claim to the contrary made within 120 days after the statement is issued,
clerical error or undisclosed material fact.
Section VII--Charged to Field Vice President's Account and Loss and Limitations
of Other Compensation
(a) Unfair Competition. You will not be entitled to receive any salary,
bonuses, fees or other compensation you would otherwise have been entitled
to receive if you engage in "unfair competition" while this Agreement is in
effect or thereafter. For purposes of this provision, you are considered to
be engaging in unfair competition if, without the consent of Company, you
commit any of the following acts, directly or indirectly, while a Field
Vice President for Company or within one year thereafter in any territory
where you or an Advisor or a District Manager subject to your supervision
sought applications for Products and Services under this or any other
agreement with Company or Affiliate:
(1) Offer for sale, sell or seek an offer to buy any Product or Service
issued by any company to or from a Client. This provision only applies
to any Client whom you contacted or dealt with or learned about because
you represented Company or an Affiliate or Issuer.
(2) Try to encourage anyone to terminate an agreement with Company or an
Affiliate or Issuer.
(3) Disclose any trade secret or other proprietary information of Company
or an Affiliate or Issuer or use any trade secret or other proprietary
information in competition with Company or an Affiliate or Issuer.
(b) You understand and agree that information about Clients, including Client
identities, is confidential information and a trade secret. This Client
information is the sole and exclusive property of Company and its
Affiliates and Issuer.
(c) Claims, Controversies and Settlements. If any of the events listed below
should occur, Company may withhold any amounts that you are entitled to
receive or may become entitled to receive:
(1) Any claims of misrepresentation or the use of unfair or inequitable
methods in the sale of Products or Services
(2) Your failure to send any payments you collect to Company or Issuer.
<PAGE>
(3) Any controversy between you and Company.
(4) You violate this Agreement, or
(5) You are suspended while Company investigates whether cause for
terminating this Agreement exists.
Company may withhold such amounts to the extent it believes necessary. The
withholding may continue until the violation has been corrected or the situation
has been resolved.
(d) If you are found to be guilty of wrongdoing, Company may retain or charge
you for the following amounts as damages: the amount of its loss, plus the
expenses it incurred in connection with the loss, including the costs of
investigation.
(e) If Company or Issuer will for any reason deem it proper to rescind or
cancel a policy and return any part of a premium, no compensation will be
payable thereon and you will repay to Company upon demand any compensation
already paid on or bonus resulting from such returned premium.
(f) Company or an Affiliate may make a settlement with a Client in accordance
with its business judgment and refund in whole or in part any sum paid by
such a Client. Upon the making of a settlement or refund, whether or not a
claim of misrepresentation was made, Company shall be entitled to charge
back to you the whole of such proportion part of the compensation and fees
paid, credited to or retained by you. You may not make any settlement with
or refund to a client without the written approval of Company.
Section VIII--Restrictions on Field Vice President's Activities
(a) You will not, without written consent of Company, use any information you
acquired while this Agreement was in force in a manner adverse to the
interests of Company, an Affiliate or an Issuer. You also will not:
(1) Encourage or induce anyone, including but not limited to any Company
client or Company financial advisor or Company field manager, to
terminate an agreement with Company, an Affiliate or Issuer without
Company's consent.
(2) Encourage or induce any Client to stop carrying out any action related
to a Product or Service acquired from or through Company's systematic
payments, for example;
(3) Promote or make unwarranted claims against Company or an Affiliate or
Issuer;
(4) Encourage or induce any Client to sell, surrender or redeem any Product
or Service distributed or offered by Company or an Affiliate or Issuer
without Company's consent.
All of the above provisions apply while the Agreement is in effect and after it
ends.
<PAGE>
(b) All Records and Materials are the property of Company, an Affiliate or an
Issuer. All rights to Records and Materials that you prepare or create in
connection with the performance of this Agreement are hereby assigned to
Company. You agree that you will not reproduce or allow the reproduction of
the Records and Materials in any manner whatsoever except pursuant to
written policy or consent of Company.
(c) You are responsible for the safekeeping of these items. Such Records and
Materials are open to inspection by Company at any time. You must deliver
them and all copies of them to Company at any time on request. When this
Agreement ends, all of these items remain Company property. You must return
all of them, together with any licenses you have or control, without demand
or compensation.
(d) While this Agreement is in effect and after it ends, you agree that you
will not reveal the contents of any Company property or allow them to be
revealed, except in connection with carrying out your duties under this
Agreement You will not reveal any names and addresses of Company Clients or
any other information about them, including financial information. You also
will not reveal any of this information about potential Clients, to whom a
presentation has been made by an Advisor, District Manager or Field Vice
President who might reasonably be expected to do business with Company or
an Affiliate or Issuer. You will not allow any of this information about
Clients or potential Clients to be revealed.
(e) You agree that the identity of Clients and potential Clients is
confidential information. For one year after this Agreement ends, you agree
not to use any such information in connection with any business in
competition with Company or an Affiliate or Issuer.
(f) For one year after this Agreement ends, you will not directly or indirectly
offer for sale, sell or seek an application for any Product or Service
issued or provided by any company to or from a Client you contacted, dealt
with or learned about while you represented Company or an Affiliate or
Issuer or because of that representation. You are excepted from this
restriction only if you carry out these activities as an Advisor or
District Manager of Company or with written consent of Company.
(g) You agree that
(1) The violation of the provisions set forth in this section will result
in damage to Company that cannot be determined exactly and for which
Company has no adequate remedy under the law; and that
(2) Company has the specific right to enforce these provisions; and that
(3) Company is entitled to an injunction to keep you from violating the
provisions or to enforce them.
(4) You agree that, in addition to an injunction to keep you from violating
the terms of this Agreement, the Company will be entitled to liquidated
damages equal to the amount of
<PAGE>
compensation you earned or will earn for a period of one-year after your
termination, on sales to any clients who were clients of Company in
your region at the time of you termination.
(h) If a dispute involving this Agreement is submitted for arbitration under
the Code of Arbitration Procedure of the National Association of Securities
Dealers or otherwise, you agree that Company is entitled to an injunction
by a court of competent jurisdiction to keep you from violating these
restrictions while the arbitration is pending.
Section IX--Other Restrictions
(a) Sales Literature. You must have written approval from Company or an
Affiliate before you issue or use in any way material about Products and
Services distributed by Company, an Affiliate or Issuer or about them. You
will also take steps to prevent and promptly advise Company of the use of
unapproved material by an Advisor or District Manager in your territory.
(b) Trafficking or Switching. You will not make any agreement with any person
for the repurchase or resale of Products or Services distributed or offered
by Company, an Affiliate or Issuer You also will not seek or purchase
(except from Company, an Affiliate or Issuer) or traffic in any security of
Company, an Affiliate or Issuer. You will not resort to trafficking in or
switching of the securities of any other companies, of insurance policies
or of governmental obligations. You will take steps to prevent and promptly
advise Company of any such activity or practice on the part of an Advisor
or District Manager in your territory.
(c) You will not attempt to cancel or rescind any insurance policy or annuity
contract nor make any refunds to a policy or contract holder without the
written approval of Company.
Section X--Termination
(a) This Agreement terminates in the event of:
(1) Your death or retirement.
(2) Your total and permanent disability. You shall be deemed to be disabled
if, by reason of a physical or mental condition, you are unable to
perform this Agreement. Whether such disability is considered temporary
or total and permanent will be determined by Company in its sole
discretion.
(3) Cancellation or non-renewal of any license, registration or bond you
are required to have by the terms of this Agreement.
(4) A violation of any provision of this Agreement If you violate any part
of this Agreement, you will not be entitled to receive any payment from
Company that you otherwise would have been entitled to receive.
<PAGE>
If any of the above agreements are entered into and later terminated, this
Agreement terminates on the same date, unless Company waives the termination of
this Agreement.
(b) Termination by Parties. This Agreement may be terminated by either party
without cause upon 30 days' written notice to the other party and for cause
may be terminated immediately by Company. You agree that you are an
employee-at-will of the Company and may be terminated with or without
cause.
(c) Suspension of Rights of Field Vice President If Company believes that it
may have the right to terminate this Agreement for cause, Company can
notify you that it is investigating whether cause for terminations exists.
This suspension can be given instead of terminating the Agreement, in order
to provide time for determining the facts. Until the notice is retracted,
it has the same effect on your rights as a notice of termination for cause.
When the investigation has been completed, if not before, Company will
notify you whether your suspension is lifted or the Agreement is terminated
for cause. If the Agreement is terminated, the termination takes effect on
the date you received the notice of suspension.
(d) Debit Balance of Field Vice President When this Agreement ends, you must
pay on demand any debt you owe Company, including any amount owed in your
compensation account. Payment is required whether the debt is for charges
made before or after Agreement termination.
Section XI--Termination Claims
If the Agreement ends, you have no claim for profits, anticipated profits or
earnings. You also have no claim for a refund or reimbursement of any funds you
have advanced or expenses you have paid or incurred in connection with your
responsibilities under this Agreement or for any other reason. The only
exception will occur if Company specifically authorizes reimbursement in writing
before termination of the Agreement.
Section XII--Prior Agreements
This agreement terminates and supersedes any existing agreements between the
parties whether executed effective the same date as this Agreement or otherwise.
You understand you will have no right to any commissions or overwriting payable
under such an agreement for business written under that agreement on your right
to any compensation earned and unpaid under that Agreement.
Section XIII--Miscellaneous
(a) This Agreement may be amended only in writing. The amendment must be signed
by you and an authorized office of Company.
(b) This Agreement is a Minnesota contract, governed by Minnesota law. All of
the payments you make to Company are payable in Hennepin County, Minnesota.
You expressly waive
<PAGE>
any privileges contrary to this provision. You agree to the jurisdiction of
State of Minnesota courts for determining any controversy in connection
with this Agreement
(c) If Company waives any provisions of this Agreement, the waiver applies only
to that provision, not to any other parts of the Agreement. A waiver is
effective only when it is in writing and signed by an authorized Company
officer.
(d) If the laws of any state prohibit any provision of this Agreement, the laws
apply only to the provision. They do not invalidate the remaining portion
of the Agreement.
(e) Any notice to be given to Company under this Agreement must be given to the
corporate office of Company in Minneapolis, Minnesota. Any notice given to
you under this Agreement is considered to have been given if delivered to
you in person or mailed to your last known address on file with the Company
corporate office in Minneapolis.
(f) You and Company both acknowledge that no oral or written representations
were made about this Agreement or about the relationship between you and
Company that are not set forth in this Agreement. Your rights and Company's
rights are governed only by this Agreement and by any other subsequent
written agreements or riders entered into between you and Company that are
signed by an authorized officer of the Company.
(g) You hereby authorize Company to utilize the cumulative method of federal
income tax withholding as long as you are an employee of Company.
(h) You understand that you and your spouse and your children under age 21 who
are members of your household may buy Stock of Issuers for whom Company
acts as distributor at net asset value. You agree that none of the Stock
you or eligible family members buy at net asset value will be resold unless
it is presented to the Issuer for redemption.
(i) "Compliance with Law"
(1) You represent and warrant that:
(a) You will comply with all the laws and regulations applicable to
your activities under this Agreement.
(b) In carrying out your responsibilities under this Agreement, you
will not directly or indirectly make or promise any illegal
payments or engage in any illegal conduct in order to:
(i) Obtain or keep business.
(ii)Influence Clients or governmental entities (including their
officers or employees) to perform their official function
improperly, not perform that function at all, or influence
legislation.
<PAGE>
(2) Company may believe that it should disclose the existence of this
Agreement and its terms and conditions if a governmental authority or
agency should make a proper inquiry or in other situations. You
authorize any disclosure Company may make in its discretion.
(j) "Greater Force"
(1) If an act or condition beyond your or Company's reasonable control
prevents, restricts or interferes with fulfilling the terms of this
Agreement, the obligation to fulfill the Agreement will be suspended to
the extent appropriate. State or government action and national
disaster are examples of acts or conditions beyond reasonable control.
(2) For suspensions of the Agreement to occur, the party affected must:
(a) Notify the other party promptly about the act or condition and
its effect.
(b) Make its best effort to avoid or remove the cause of the
suspension.
(c) Promptly continue fulfilling the terms of the Agreement when the
cause of the suspension is removed.
Section XIV--Nonassignable
You may not assign this Agreement or any payment or benefit you become entitled
to receive under it without Company's written consent.
Section XV--Arbitration
You agree to arbitrate any dispute, claim or controversy that may arise between
you and the Company, or a customer, or any other person, that is required to be
arbitrated under the rules, constitutions, or by-laws of the National
Association of Securities Dealers as they may be amended as a judgment in any
court of competent jurisdiction.
Section XIV--Effective Date
In witness of the provisions of this Agreement as described above, you and
Company have entered into this Agreement with the understanding
that it becomes effective on ________________________, 19________.
<PAGE>
American Express Financial Advisors Inc.
________________________ ___________________________
Field Vice President Assistant Secretary
A.O. Number
Advisor Number
(To be executed in duplicate--one copy to be returned to Field
Vice President.)
IDS Life Insurance Company of New York
Recruiting and Training Manager License Agreement
This is an Agreement, made at Minneapolis, Minnesota, by and between IDS Life
Insurance Company of New York and you,
(Print Full Name)
executed and effective as of the date shown on the last line of this Agreement.
It defines your relationship with IDSL-NY as a Recruiting and Training Manager.
Both you and IDSL-NY promise to comply with the terms of this Agreement and any
properly executed Riders to this Agreement.
Section I--Definitions
1. For purposes of this Agreement, the terms listed below have the special
meanings shown.
(a) "IDSL-NY" means IDS Life Insurance Company of New York.
(b) "IDS" means IDS Financial Services Inc. (formerly IDS Marketing
Corporation).
(c) "Affiliate" means any partnership, business, trust, company or
corporation affiliated with IDSL-NY at any time while this Agreement is
in effect.
(d) "Planner" means Personal Financial Planner and Sales Representative.
(e) "Services" means financial planning, advisory, securities brokerage,
tax or other financial Services.
(f) "Products" means certificates, stock, other securities or investments,
lending products, life insurance and annuity policies and contracts,
and other insurance products.
(g) "Records and Materials" means all records, files, manuals, blanks,
forms, materials, supplies, stationery, literature, seminar materials,
computer software, licenses, papers and books that IDSL-NY or an
Affiliate furnishes or leases to you
<PAGE>
for use, with or without charge, or that you create or prepare, including
notes, memos and works of authorship, in connection with the
performance of this Agreement.
(h) "Client" means a person or entity who (1) purchases or holds a Product
or Service acquired from or through IDSL-NY or an Affiliate or one of
their Planners with the consent of IDSL-NY or the Affiliate, or (2)
authorized IDSL-NY, an Affiliate or one of their Planners to make
personal financial planning presentations to it or its employees or
members, or (3) is a member of a Client's household.
Section II--Appointment
1. You are employed as a Recruiting and Training Manager by IDS pursuant to an
agreement, the terms of which prohibit you from acting as an insurance agent
while acting on behalf of IDS, and you may find it necessary or desirable in
certain circumstances to undertake activities which are reserved by law to
insurance agents. IDS has advised IDSL-NY that it will waive the full-time
requirement of its employment agreement with you to the extent necessary for
you to act as an agent of IDSL-NY, but only upon the express condition that
you will receive no compensation from IDSL-NY.
2. IDSL-NY appoints you to act as an agent of IDSL-NY in connection with your
activities as a Recruiting and Training Manager, but only in accordance with
this Agreement and you accept that appointment.
Section III--Business Activities of Manager
Your duties as a Recruiting and Training Manager may include activities
necessitating you to act as an agent of IDSL-NY. You will not exercise any
greater control over the Planners or managers of IDSL-NY or an Affiliate than is
authorized by such company.
Section IV--Duties
Through this Agreement IDSL-NY engages you as an independent contractor to:
1. Seek applications for insurance policies and annuity contracts.
2. Promptly deliver premium receipts and policies originating from applications
so sought, but only when the applicant appears to be in good health and the
initial premium (if required) has been duly paid.
3. Immediately report and remit to IDSL-NY any payments for initial premiums
originating from applications so sought or other money or property you may
collect or receive on behalf of IDSL-NY without commingling the same with
your own funds or property.
<PAGE>
4. In dealing with Clients or prospective Clients, fully explain the terms of
any insurance policy or annuity contract, make no untrue statements and
state all relevant facts.
Section V--Status of Manager
1. Nothing in this Agreement can be interpreted as creating an
employer-employee relationship between IDSL-NY and you or between any
representative of IDSL-NY and you.
2. You will pay all expenses and fees you incur while carrying out the terms of
this Agreement and will comply with all applicable laws, ordinances and
regulations.
3. You will, before conducting any activities under this Agreement, obtain any
licenses or registrations required by law or IDSL-NY and a fidelity or
surety bond satisfactory to IDSL-NY and will maintain them in force until
this Agreement is terminated.
4. This Agreement will terminate upon cancellation or non-renewal of any
license, registration or bond you are required to have by the terms of this
Agreement.
Section VI--Undertakings by Manager
1. You must have written approval from IDSL-NY or an Affiliate before you issue
or use in any way any materials about insurance policies or annuity
contracts distributed by IDSL-NY or an Affiliate or about them.
2. You will abide by all rules, regulations and policies of IDSL-NY and IDS.
3. You cannot alter or change the provisions of any insurance policy or annuity
contract distributed by IDSL-NY. You also cannot incur any liability or
expense on behalf of IDSL-NY.
4. You agree to and authorize the assignment of any debt you owe IDSL-NY to
any Affiliate. You also agree to repay any assigned debt to the assignee.
Section VII--Compensation
You will not receive any compensation from IDSL-NY for any of your activities
under this Agreement.
Section VIII--Termination
1. This Agreement will terminate upon your death, your total and permanent
disability, your retirement or the termination of your IDS Recruiting and
Training Manager Agreement with IDS.
<PAGE>
2. This Agreement may be terminated by either party without cause upon 30 days'
written notice to the other party and for cause may be terminated
immediately by IDSL-NY. A breach by you of any provision of this Agreement
will terminate this Agreement.
3. If IDSL-NY believes that it may have the right to terminate this Agreement
for cause, IDSL-NY can notify you that it is investigating whether cause for
termination exists. This suspension can be given instead of terminating the
Agreement, in order to provide time for determining the facts. Until the
notice is retracted, it has the same effect on your rights as a notice of
termination for cause. When the investigation has been completed, if not
before, IDSL-NY will notify you whether your suspension is lifted or the
Agreement is terminated for cause. If the Agreement is terminated, the
termination takes effect on the date you received the notice of suspension.
4. (a) All Records and Materials are the property of IDSL-NY, an Affiliate
or one of their associated companies. All rights to Records and Materials
that you prepare or create in connection with the performance of this
Agreement are hereby assigned to IDSL-NY. You agree that you will not
reproduce or allow the reproduction of the Records and Materials in any
manner whatsoever except pursuant to written policy or consent of
IDSL-NY.
(b) You are responsible for the safekeeping of these items. Such Records and
Materials are open to inspection by IDSL-NY at any time during your
normal business hours. You must return them and all copies of them to
IDSL-NY at any time on request. When this Agreement ends, all of these
items remain IDSL-NY property. You must return all of them, together
with any licenses you have or control, without demand or compensation.
(c) While this Agreement is in effect and after it ends, you agree that you
will not reveal the contents of any IDSL-NY property or allow them to be
revealed, except in connection with carrying out your duties under the
Agreement. You will not reveal the names and addresses of IDSL-NY
Clients or any other information about them, including financial
information. You also will not reveal any of this information about
potential Clients, to whom a presentation has been made by an IDSL-NY
Planner, who might reasonably be expected to do business with IDSL-NY or
an Affiliate. You will not allow any of this information about Clients
or potential Clients to be revealed.
(d) You agree that the identity of Clients and potential Clients is
confidential information. For one year after this Agreement ends, you
agree not to use any such information in connection with any business in
competition with IDSL-NY or an Affiliate.
5. (a) You must not, without the written consent of IDSL-NY, use any
information you acquired while this Agreement was in force in a manner
adverse to the interests of IDSL-NY or an Affiliate. You also must
not:
<PAGE>
(1) Encourage or induce anyone to terminate an agreement with IDSL-NY
or an Affiliate without IDSL-NY's consent;
(2) Encourage or induce any annuity or policy holder to give up a
policy or contract;
(3) Promote or make unwarranted claims against IDSL-NY or an
Affiliate.
(b) All of the above provisions apply while the Agreement is in effect and
after it ends.
6. For one year after this Agreement ends, you agree that you will not, in the
territory where you acted as a Recruiting and Training Manager under this or
any other agreement with IDSL-NY or an Affiliate, directly or indirectly
offer for sale, sell or seek an application for any Product or Service
issued or provided by any company to or from a Client you contacted, dealt
with or learned about while you represented IDSL-NY or an Affiliate or
because of that representation. You are excepted from this restriction only
if you carry out these activities as a Planner or manager of IDSL-NY or with
the written consent of IDSL-NY.
7 You must not do anything to damage the goodwill of IDSL-NY or an Affiliate.
8. (a) You agree that:
(1) The violation of the provisions in paragraphs 4, 5, 6 and 7 of this
section will result in damage to IDSL-NY that cannot be determined
exactly and for which IDSL-NY has no adequate remedy under the law;
and that
(2) IDSL-NY has the specific right to enforce these provisions; and that
(3) IDSL-NY is entitled to an injunction to keep you from violating the
provisions or to enforce them.
(b) If a dispute involving this Agreement is submitted for arbitration under
the Code of Arbitration Procedure of the National Association of
Securities Dealers or otherwise, you agree that IDSL-NY is entitled to
an injunction by a court of competent jurisdiction to keep you from
violating these restrictions while the arbitration is pending.
Section IX--Termination Claims
You have no claim against IDSL-NY for profits, anticipated profits or earnings
under the terms of this Agreement or your employment agreement with IDS as a
Recruiting and Training Manager. You also have no claim against IDSL-NY for a
refund or reimbursement of any funds you have advanced or expenses you have paid
or incurred in connection with your responsibilities under this Agreement or for
any other reason.
<PAGE>
Section X--Miscellaneous
1. This Agreement is a New York contract, governed by New York law.
2. If IDSL-NY waives any provision of this Agreement, the waiver applies only
to that provision, not to any other parts of the Agreement. A waiver is
effective only when it is in writing and signed by an authorized IDSL-NY
officer.
3. If the laws of any state prohibit any provision of this Agreement, the laws
apply only to that provision. They do not invalidate the remaining portion
of the Agreement.
4. Any notice to IDSL-NY under this Agreement must be given to the home office
of IDSL-NY in Albany, New York. Any notice given to you under this Agreement
is considered to have been given if delivered to you in person or mailed to
your last known address on file with the IDSL-NY home office in Albany.
You and IDSL-NY both acknowledge that no oral or written representations were
made about this Agreement or about the relationship between you and IDSL-NY that
are not set forth in this Agreement. Your rights and IDSL-NY's rights are
governed only by this Agreement and by any other subsequent written agreements
or riders between you and IDSL-NY and signed by an authorized officer of
IDSL-NY.
Section XI--Nonassignable
You may not assign this Agreement without IDSL-NY's written consent.
Section XII--Prior Agreements
This Agreement terminates and supersedes any existing agreements between the
parties whether executed effective the same date as this Agreement or otherwise.
However, this provision does not impair your right to any commissions or
overwriting payable under such an agreement for business written under that
agreement or your right to any compensation earned and unpaid under that
agreement.
Section XIII--Effective Date
In witness of the provisions of this Agreement as described above, you and
IDSL-NY have entered into this Agreement with the understanding that it becomes
effective on _______________________, 19__.
<PAGE>
IDS Life Insurance Company of New York
Recruiting and Training Manager Assistant Secretary
D.O. Number
Planner No.
(To be executed in duplicate - one copy to be returned to Recruiting and
Training Manager.)
American Express Financial Advisors Inc.
Group Vice President Agreement
This is an Agreement, made at Minneapolis, Minnesota, by and between American
Express Financial Advisors Inc. ("Company") and you,
(Print Full Name)
executed and effective as of the date shown on the last line of this Agreement
It defines your relationship with Company as a Group Vice President. Both you
and Company promise to comply with the terms of this Agreement and any properly
executed Riders to this Agreement.
Section I - Definitions
For purposes of this Agreement, the terms listed below have the special meanings
shown.
(a) "Company" means American Express Financial Advisors Inc.
(b) "Affiliate" means any partnership, business, trust, company or
corporation affiliated with Company at any time while this Agreement is
in effect.
(c) "Personal Financial Advisor or Advisor" means Personal Financial
Advisor and Sales Representative.
(d) "District Manager" means a person who has executed a District
Manager's Rider to an Advisor's Agreement with Company.
(e) "Field Vice President" means a person who has executed a Division
Manager's, Division Vice President's or Field Vice President's
Agreement with Company.
(f) "Group Vice President" means a person who has executed a Group Vice
President's Agreement with Company.
(g) "Certificates" means the face amount Certificates of IDS Certificate
Company and contractual plan Certificates of any other contractual
plan.
(h) "Stock" means the capital Stock of registered investment companies.
(i) "Services" means financial planning, advisory, securities brokerage,
tax or other financial Services.
(j) "Products" means Certificates, Stock, other securities or investments,
lending products, life insurance and annuity policies and contracts,
and other insurance products.
(k) "Issuer" means the company or entity that issues a Product or Service
distributed or offered by Company itself or by Company as the agent of
the another company or as the branch manager of IDS Life Insurance
Company of New York.
(1) "Records and Materials" means all records, files, manuals, blanks,
forms, materials, supplies, stationery, literature, seminar materials,
computer software, licenses, papers and books that Company or an Issuer
furnishes or leases to you for use, with or without charge, or that you
create or prepare, including notes, memos and works of authorship, in
connection with the performance of this Agreement.
(m) "Compensation Plan" means the rules and policies as amended and
published from time to time that are related to items (1), (2) and (3)
below and to other matters.
1. the assignment or reassignment of territory or Client accounts,
2. the payment of salaries, bonuses and other fees or compensation, and
3. the imposition of charge-backs.
(n) "Client" means a person or entity who (1) purchases or holds a Product
or Service acquired from or through Company or an Affiliate or one of
their Advisors with consent of Company or the Affiliate, or (2)
authorized Company, and Affiliate or one of their Advisors to make
personal financial planning presentations to it or its employees or
members, or (3) is a member of a Client's household.
<PAGE>
Section II - Appointment
Company hires you as a Group Vice President to supervise the Company sales force
of Personal Financial Advisors and District Managers in the territory assigned
to you in the connection with the sale and servicing of insurance policies and
annuities designated by the Company and the Products and Services distributed or
offered by Company to Clients and the servicing of such Company Clients in the
territory assigned to you, but without exclusive rights in that territory.
Company additionally hires you as a Group Vice President to act as the general
sales manager for the territory assigned to you and to directly supervise the
activities of the Field Vice Presidents employed in the territory assigned to
you.
Section III - Business Activities of Paraplanner
You agree to devote all of your working time and effort, to the best of your
abilities, to performing your duties as a Group Vice President under this
Agreement with Company and under any similar agreement with any Affiliate. You
will oversee and/or participate rn the recruiting, training, maintenance and
supervision of a sales force of Personal Financial Advisors and District
Managers operating under agreements with Company or an Affiliate or Issuer. You
will also direct and supervise the activities of the Field Vice Presidents
employed in the territory assigned to you. You will also act as an instructor at
any training school designated by Company and provide such other services as may
be requested by Company. You will, during your employment under this Agreement,
act and perform your duties and responsibilities in line with the directions of
Company. You will not exercise nor attempt to exercise any greater control over
the Advisors and District Managers of Company or an Affiliate than is authorized
by such Company.
Section IV - Status of Group Vice President
You are an employee of Company, but nothing contained in this Agreement can be
interpreted as creating an employer-employee relationship or an agency
relationship between you and any Advisor or District Manager of Company or an
Affiliate or between you and any Issuer. You will pay all your expenses and will
comply with all applicable laws and regulations. You will secure all licenses or
registrations required by law or Company and maintain a surety or fidelity bond
satisfactory to Company. This Agreement will terminate upon cancellation or
non-renewal of any license, registration or bond which you are required to have
by the terms of this Agreement.
Section V - Undertakings by Group Vice President
(a) Violation of Company's Interests. You will not, without written consent of
Company, use any information you acquired while this Agreement was in force
in a manner adverse to the interests of Company, an Affiliate or Issuer.
You also will not
(1) Do any act to damage the goodwill of Company, an Affiliate or Issuer;
(2) Encourage or induce any person to terminate an agreement with Company,
an Affiliate or Issuer without Company's consent;
(3) Encourage or induce any Client to sell, surrender or redeem any Product
or Service distributed or offered by Company, an Affiliate or Issuer
without Company's consent;
(4) Do any act which may cause a Client or prospective Client of a Product
or Service to refrain from purchasing or making purchase payments
thereon.
All of the above provisions apply while the Agreement is in effect and after it
ends.
(b) Bonds, Licenses and Registrations. You will not allow any Advisor or
District Manager to seek any applications or any Clients for Products or
Services until Advisor or District Manager has secured all licenses or
registrations required by law or Company, obtained a surety or fidelity
bond satisfactory to Company and complied with all other requirements of
Company, an Affiliate or Issuer that related to their activities under
their agreements.
(c) Full Disclosure. In dealing with Clients or prospective Clients, you will
fully explain the terms of Products or Services, not make any untrue
statements and state all relevant facts. You will also take steps to
prevent and promptly advise Company of the failure of an Advisor or
District Manager to make a full disclosure.
(d) Policies of Company. You will comply with all rules, regulations and
policies of Company, an Affiliate or Issuer that apply to your activities
under this Agreement.
(e) Reports, Collections and Remittances.
(1) Promptly deliver premium receipts and policies or contracts originating
from applications solicited for life insurance and annuities designated
by Company, but only when applicant appears to be in good health and
the initial premium (if required) has been duly paid, and other
receipts and policies or contracts as required by Company or Issuer.
(2) Collect and immediately report and remit to Company, an Affiliate or
Issuer any initial premiums and any payments you receive for Products
or Services and any other money or property you receive on behalf of
Company, an Affiliate or Issuer
<PAGE>
(3) Send payments, money or property you collect to Company, an Affiliate
or Issuer without commingling it with your own money or property.
(f) You will take steps to prevent any activity or practice on the part of an
Advisor, District Manager or Field Vice President that is in violation of
that Advisor's or District Manager's agreement with Company or with
Company's rules, policies or procedures. You also will promptly notify
Company about any such activity or practice.
(g) Authority Limited. You cannot alter or change provisions of an Product or
Service distributed by Company or through the Company field force. You also
cannot incur any liability or expense on behalf of Company, an Affiliate or
any Issuer.
(h) Any applications for a Product or Service and any business you submit is
subject to acceptance or rejection by the corporate office of Company in
Minneapolis, Minnesota and the Issuer.
(i) In consideration for your receiving any combination of salary, expense
allowance and eligibility for bonuses you will be responsible for such
proportionate share, as set forth in the Compensation Plan, of any
training-period salary (including any salary as a temporary employee) and
other recruiting and new advisor training expenses incurred with respect to
Personal Financial Advisors of Company or an Affiliate assigned to your
supervision.
(j) Debit Balance of an Advisor, District Manager of Field Vice President. You
will be responsible for such proportionate share, as set forth in the
Compensation Plan, of any debit balance of, or advance or loan made to an
Advisor, District Manager or Field Vice President who terminates, whether
associated with Company or an Affiliate or Issuer, who was subject to your
supervision pursuant to this Agreement, if Company is unable to recoup same
from such an Advisor, District Manager or Field Vice President.
Section VI - Compensation
(a) Salaries, Bonuses, and Other Fees or Compensation. Except as hereinafter
provided in this Agreement, you will be entitled to any combination of
salary, fees, and eligible for bonuses and other compensation in accordance
with the rules and policies set forth in the Compensation Plan and on such
other basis as Company will designate from time to time. Any compensation
paid pursuant to this Agreement and any riders to it will constitute
payment in full for all services rendered to Company under this Agreement
and will be subject to applicable provisions of this Agreement. Any
expenses in rendering such services will be paid by you unless the contrary
is specifically authorized in writing by an officer of Company.
(b) Special Services Compensation. From time to time, Company may direct you to
act as an instructor at a training school, as a field trainer or perform
other occasional services. These services must be carried out at the times
and places Company designates, under Company direction and control.
Additional compensation, if any, for such services will be as set forth in
the Compensation Plan. In the event of termination of this Agreement for
any reason, you will receive no such additional compensation with respect
to the period subsequent to such termination.
(c) You are not entitled to receive any compensation for any period or during
any period for which you:
(1) Received benefits under Company's Disability Income Insurance Plan for
Group Vice Presidents, or
(2) Would have received benefits if you had been covered by the Plan.
Company will determine whether your disability is temporary or total and
permanent based on proof submitted.
(d) Advances. Company may charge to your account any amounts advanced to or
paid on your behalf by Company.
(e) Right of Offset Company has right to apply any amount payable by Company to
you against any debt you owe to Company or an Affiliate.
(f) You hereby agree to and authorize the assignment of any debt you owe
Company to any Affiliate or Issuer. You also agree to repay any assigned
debt to the assignee.
(g) Compensation Statements. Except for clerical error and undisclosed material
facts, the regular compensation statement Company issues to you is
considered to be an accurate and complete record of:
(1) All the amounts Company owes you, and
(2) All accounts between you and Company purporting to be covered by that
statement.
(h) Settlement on the bass of these regular statements constitutes full
satisfaction and agreement between you and Company about the amounts and
accounts defined just above. The only exceptions occur in the case of a
claim to the contrary made within 120 days after the statement is issued,
clerical error or undisclosed material fact.
<PAGE>
Section VII - Charged to Group Vice President's Account and Loss and Limitations
of Other Compensation
(a) Unfair Competition. You will not be entitled to receive any salary,
bonuses, fees or other compensation you would otherwise have been entitled
to receive if you engage in "unfair competition" while this Agreement is in
effect or thereafter. For purposes of this provision, you are considered to
be engaging in unfair competition if, without the consent of Company, you
commit any of the following acts, directly or indirectly, while a Group
Vice President for Company or within one year thereafter in any territory
where you or an Advisor or a District Manager subject to your supervision
sought applications for Products and Services under this or any other
agreement with Company or Affiliate:
(1) Offer for sale, sell or seek an offer to buy any Product or Service
issued by any company to or from a Client. This provision only applies
to any Client whom you contacted or dealt with or learned about because
you represented Company or an Affiliate or Issuer.
(2) Try to encourage anyone to terminate an agreement with Company or an
Affiliate or Issuer.
(3) Disclose any trade secret or other proprietary information of Company
or an Affiliate or Issuer or use any trade secret or other proprietary
information in competition with Company or an Affiliate or Issuer.
(b) You understand and agree that information about Clients, including Client
identities, is confidential information and a trade secret. This Client
information is the sole and exclusive property of Company and its
Affiliates and Issuer.
(c) Claims, Controversies and Settlements. If any of the events listed below
should occur, Company may withhold any amounts that you are entitled to
receive or may become entitled to receive:
(1) Any claims of misrepresentation or the use of unfair or inequitable
methods in the sale of Products or Services.
(2) Your failure to send any payments you collect to Company or Issuer.
(3) Any controversy between you and Company.
(4) You violate this Agreement, or
(5) You are suspended while Company investigates whether cause for
terminating this Agreement exists.
Company may withhold such amounts to the extent it believes necessary. The
withholding may continue until the violation has been corrected or the situation
has been resolved.
(d) If you are found to be guilty of wrongdoing, Company may retain or charge
you for the following amounts as damages: the amount of its loss, plus the
expenses it incurred in connection with the loss, including the costs of
investigation.
(e) If Company or Issuer will for any reason deem it proper to rescind or
cancel a policy and return any part of a premium, no compensation will be
payable thereon and you will repay to Company upon demand any compensation
already paid on or bonus resulting from such returned premium.
(f) Company or an Affiliate may make a settlement with a Client in accordance
with its business judgment and refund in whole or in part any sum paid by
such a Client. Upon the making of a settlement or refund, whether or not a
claim of misrepresentation was made, Company shall be entitled to charge
back to you the whole of such proportion part of the compensation and fees
paid, credited to or retained by you. You may not make any settlement with
or refund to a client without the written approval of Company.
Section VIII - Restrictions on Group Vice President's Activities
(a) You will not, without written consent of Company, use any information you
acquired while this Agreement was in force in a manner adverse to the
interests of Company, an Affiliate or an Issuer. You also will not:
(1) Encourage or induce anyone, including but not limited to any Company
client or Company financial advisor or Company field manager, to
terminate an agreement with Company, an Affiliate or Issuer without
Company's consent.
(2) Encourage or induce any Client to stop carrying out any action related
to a Product or Service acquired from or through CompanyN systematic
payments, for example;
(3) Promote or make unwarranted claims against Company or an Affiliate or
Issuer;
(4) Encourage or induce any Client to sell, surrender or redeem any Product
or Service distributed or offered by Company or an Affiliate or Issuer
without Company's consent.
All of the above provisions apply while the Agreement is in effect and after it
ends.
<PAGE>
(b) All Records and Materials are the property of Company, an Affiliate or an
Issuer. All rights to Records and Materials that you prepare or create in
connection with the performance of this Agreement are hereby assigned to
Company. You agree that you will not reproduce or allow the reproduction of
the Records and Materials in any manner whatsoever except pursuant to
written policy or consent of Company.
(c) You are responsible for the safekeeping of these items. Such Records and
Materials are open to inspection by Company at any time. You must deliver
them and all copies of them to Company at any time on request. When this
Agreement ends, all of these items remain Company property. You must return
all of them, together with any licenses you have or control, without demand
or compensation.
(d) While this Agreement is in effect and after it ends, you agree that you
will not reveal the contents of any Company property or allow them to be
revealed, except in connection with carrying out your duties under this
Agreement You will not reveal any names and addresses of Company Clients or
any other information about them, including financial information. You also
will not reveal any of this information about potential Clients, to whom a
presentation has been made by an Advisor, District Manager or Field Vice
President who might reasonably be expected to do business with Company or
an Affiliate or Issuer. You will not allow any of this information about
Clients or potential Clients to be revealed.
(e) You agree that the identity of Clients and potential Clients is
confidential information. For one year after this Agreement ends, you agree
not to use any such information in connection with any business in
competition with Company or an Affiliate or Issuer.
(f) For one year after this Agreement ends, you will not directly or indirectly
offer for sale, sell or seek an application for any Product or Service
issued or provided by any company to or from a Client you contacted, dealt
with or learned about while you represented Company or an Affiliate or
Issuer or because of that representation. You are excepted from this
restriction only if you carry out these activities as an Advisor or
District Manager of Company or with written consent of Company.
(g) You agree that:
(1) The violation of the provisions set forth in this section will result
in damage to Company that cannot be determined exactly and for which
Company has no adequate remedy under the law; and that
(2) Company has the specific right to enforce these provisions; and that
(3) Company is entitled to an injunction to keep you from violating the
provisions or to enforce them.
(4) You agree that, in addition to an injunction to keep you from violating
the terms of this Agreement, the Company will be entitled to liquidated
damages equal to the amount of compensation you earned or will earn for
a period of one-year after your termination, on sales to any clients
who were clients of Company in your region at the time of you
termination.
(h) If a dispute involving this Agreement is submitted for arbitration under
the Code of Arbitration Procedure of the National Association of Securities
Dealers or otherwise, you agree that Company is entitled to an injunction
by a court of competent jurisdiction to keep you from violating these
restrictions while the arbitration is pending.
Section IX - Other Restrictions
(a) Sales Literature. You must have written approval from Company or an
Affiliate before you issue or use in any way material about Products and
Services distributed by Company, an Affiliate or Issuer or about them. You
will also take steps to prevent and promptly advise Company of the use of
unapproved material by an Advisor, District Manager or Field Vice President
in your territory.
(b) Trafficking or Switching. You will not make any agreement with any person
for the repurchase or resale of Products or Services distributed or offered
by Company, an Affiliate or Issuer. You also will not seek or purchase
(except from Company, an Affiliate or Issuer) or traffic in any security of
Company, an Affiliate or Issuer. You will not resort to "trafficking" in or
"switching" of the securities of any other companies, of insurance policies
or of governmental obligations. You will take steps to prevent and promptly
advise Company of any such activity or practice on the part of an Advisor
or District Manager in your territory.
(c) You will not attempt to cancel or rescind any insurance policy or annuity
contract nor make any refunds to a policy or contract holder without the
written approval of Company.
Section X - Termination
(a) This Agreement terminates in the event of:
(1) Your death or retirement.
(2) Your total and permanent disability. You shall be deemed to be disabled
if, by reason of a physical or mental condition, you are unable to
perform this Agreement. Whether such disability is considered temporary
or total and permanent will be determined by Company in its sole
discretion.
<PAGE>
(3) Cancellation or non-renewal of any license, registration or bond you
are required to have by the terms of this Agreement.
(4) A violation of any provision of this Agreement. If you violate any part
of this Agreement, you will not be entitled to receive any payment from
Company that you otherwise would have been entitled to receive.
If any of the above agreements are entered into and later terminated, this
Agreement terminates on the same date, unless Company waives the termination of
this Agreement.
(b) Termination by Parties. This Agreement may be terminated by either party
without cause upon 30 days' written notice to the other party and for cause
may be terminated immediately by Company. You agree that you are an
employee-at-will of the Company and may be terminated with or without
cause.
(c) Suspension of Rights of Group Vice President. If Company believes that it
may have the right to terminate this Agreement for cause, Company can
notify you that it is investigating whether cause for terminations exists.
This suspension can be given instead of terminating the Agreement, in order
to provide time for determining the facts. Until the notice is retracted,
it has the same effect on your rights as a notice of termination for cause.
When the investigation has been completed, if not before, Company will
notify you whether your suspension is lifted or the Agreement is terminated
for cause. If the Agreement is terminated, the termination takes effect on
the date you received the notice of suspension.
(d) Debit Balance of Group Vice President. When this Agreement ends, you must
pay on demand any debt you owe Company, including any amount owed in your
compensation account. Payment is required whether the debt is for charges
made before or after Agreement termination.
Section XI - Termination Claims
If the Agreement ends, you have no claim for profits, anticipated profits or
earnings. You also have no claim for a refund or reimbursement of any funds you
have advanced or expenses you have paid or incurred in connection with your
responsibilities under this Agreement or for any other reason. The only
exception will occur if Company specifically authorizes reimbursement in writing
before termination of the Agreement.
Section XII - Prior Agreements
This agreement terminates and supersedes any existing agreements between the
parties whether executed effective the same date as this Agreement or otherwise.
You understand you will have no right to any commissions or overwriting payable
under such an agreement for business written under that agreement on your right
to any compensation earned and unpaid under that Agreement.
Section XIII - Miscellaneous
(a) This Agreement may be amended only in writing. The amendment must be signed
by you and an authorized office of Company.
(b) This Agreement is a Minnesota contract, governed by Minnesota law. All of
the payments you make to Company are payable in Hennepin County, Minnesota.
You expressly waive any privileges contrary to this provision. You agree to
the jurisdiction of State of Minnesota courts for determining any
controversy in connection with this Agreement.
(c) If Company waives any provisions of this Agreement, the waiver applies only
to that provision, not to any other parts of the Agreement. A waiver is
effective only when it is in writing and signed by an authorized Company
officer.
(d) If the laws of any state prohibit any provision of this Agreement, the laws
apply only to the provision. They do not invalidate the remaining portion
of the Agreement.
(e) Any notice to be given to Company under this Agreement must be given to the
corporate office of Company in Minneapolis, Minnesota Any notice given to
you under this Agreement is considered to have been given if delivered to
you in person or mailed to your last known address on file with the Company
corporate office in Minneapolis.
(f) You and Company both acknowledge that no oral or written representations
were made about this Agreement or about the relationship between you and
Company that are not set forth in this Agreement. Your rights and Company's
rights are governed only by this Agreement and by any other subsequent
written agreements or riders entered into between you and Company that are
signed by an authorized officer of the Company
(g) You hereby authorize Company to utilize the cumulative method of federal
income tax withholding as long as you are an employee of Company.
(h) You understand that you and your spouse and your children under age 21 who
are members of your household may buy Stock of Issuers for whom Company
acts as distributor at net asset value. You agree that none of the Stock
you or eligible family members buy at net asset value will be resold unless
it is presented to the Issuer for redemption.
<PAGE>
(i) "Compliance with Law"
(1) You represent and warrant that:
(a) You will comply with all the laws and regulations applicable to
your activities under this Agreement.
(b) In carrying out your responsibilities under this Agreement, you
will not directly or indirectly make or promise any illegal
payments or engage in any illegal conduct in order to:
(i) Obtain or keep business.
(ii)Influence Clients or governmental entities (including their
officers or employees) to perform their official function
improperly, not perform that function at all, or influence
legislation.
(2) Company may believe that it should disclose the existence of this
Agreement and its terms and conditions if a governmental authority or
agency should make a proper inquiry or in other situations. You
authorize any disclosure Company may make in its discretion.
(j) "Greater Force"
(1) If an act or condition beyond your or Company's reasonable control
prevents, restricts or interferes with fulfilling the terms of this
Agreement, the obligation to fulfill the Agreement will be suspended to
the extent appropriate. State or government action and national
disaster are examples of acts or conditions beyond reasonable control.
(2) For suspensions of the Agreement to occur, the party affected must:
(a) Notify the other party promptly about the act or condition and
its effect.
(b) Make its best effort to avoid or remove the cause of the
suspension.
(c) Promptly continue fulfilling the terms of the Agreement when the
cause of the suspension is removed.
Section XIV - Nonassignable
You may not assign this Agreement or any payment or benefit you become entitled
to receive under it without Company's written consent.
Section XV - Arbitration
You agree to arbitrate any dispute, claim or controversy that may arise between
you and the Company, or a customer, or any other person, that is required to be
arbitrated under the rules, constitutions, or by-laws of the National
Association of Securities Dealers as they may be amended as a judgment in any
court of competent jurisdiction.
Section XIV - Effective Date
In witness of the provisions of this Agreement as described above, you and
Company have entered into this Agreement with the understanding
that it becomes effective on , 19 .
------------------------- -----
American Express Financial Advisors Inc.
By
Group Vice President Assistant Secretary
A.O. Number
Advisor Number
(To be executed in duplicate - one copy to be returned to Group Vice President)
IDS Life Insurance Company of New York
IDS Paraplanner License Agreement
This is an Agreement, made at Minneapolis, Minnesota, by and between IDS Life
Insurance Company of New York and you,
(Print Full Name)
executed and effective as of the date shown on the last line of this Agreement.
It defines your relationship with IDSL-NY as a Paraplanner. Both you and IDSL-NY
promise to comply with the terms of this Agreement and any properly executed
Riders to this Agreement.
Section I - Definitions
1. For purposes of this Agreement, the terms listed below have the special
meanings shown.
(a) "IDSL-NY" means IDS Life Insurance Company of New York.
(b) "IDS" means IDS Financial Services Inc. (formerly IDS Marketing
Corporation).
(c) "Affiliate" means any partnership, business, trust, company or
corporation affiliated with IDSL-NY at any time while this Agreement is
in effect.
(d) "Personal Financial Planner or Planner" means Personal Financial
Planner and Sales Representative.
(e) "Services" means financial planning, advisory, securities brokerage,
tax or other financial Services.
(f) "Products" means certificates, stock, other securities or investments,
lending products, life insurance and annuity policies and contracts,
and other insurance products.
(g) "Records and Materials" means all records, files, manuals, blanks,
forms, materials, supplies, stationery, literature, seminar materials,
computer software, licenses, papers and books that IDSL-NY or an
Affiliate furnishes or leases to you for use, with or without charge,
or that you create or prepare, including notes, memos and works of
authorship, in connection with the performance of this Agreement.
(h) "Client" means a person or entity who (1) purchases or holds a Product
or Service acquired from or through IDSL-NY or an Affiliate or one of
their Planners with the consent of IDSL-NY or the Affiliate, or (2)
authorized IDSL-NY, an Affiliate or one of their Planners to make
personal financial planning presentations to it or its employees or
members, or (3) is a member of a Client's household.
Section II - Appointment
1. You are employed as a Paraplanner by IDS or an IDS Personal Financial
Planner pursuant to an agreement, the terms of which prohibit you from
acting as an insurance agent while acting on behalf of IDS or Planner.
2. Your duties as a Paraplanner may require you to undertake activities which
are reserved by law to insurance agents
3. IDS or Planner has advised IDSL-NY that it will waive the full-time
requirement of its employment agreement with you to the extent necessary
for you to act as an agent of IDSL-NY, but only upon the express condition
that you will receive no compensation from IDSL-NY.
4. IDSL-NY appoints you to act as an agent of IDSL-NY in connection with your
activities as a Paraplanner in assisting duly licensed Planners of IDS and
IDSL-NY, but only in accordance with this Agreement and you accept that
appointment.
Section III - Business Activities of Paraplanner
Your duties as a Paraplanner may include activities necessitating you to act as
an agent of IDSL-NY. However, such activities will not include seeking
applications for insurance policies or annuity contracts.
Section IV - Status of Paraplanner
1. You are an independent contractor for IDSL-NY, and nothing in this
Agreement can be interpreted as creating an employer-employee relationship
between IDSL-NY and you or between any IDSL-NY Planner and you.
<PAGE>
2. You will pay all expenses and fees you incur while carrying out the terms
of this Agreement and will comply with all applicable laws, ordinances and
regulations.
3. You will, before conducting any activities under this Agreement, obtain any
licenses or registrations required by law or IDSL-NY and a fidelity or
surety bond satisfactory to IDSL-NY and will maintain them in force until
this Agreement is terminated
4. This Agreement will terminate upon cancellation or non-renewal of any
license, registration or bond you are required to have by the terms of this
Agreement.
Section V - Undertakings By Paraplanner
1. You must have written approval from IDSL-NY before you issue or use in any
way any materials about IDSL-NY or about insurance policies and annuity
contracts issued by IDSL-NY
2. You will abide by all rules, regulations and policies of IDSL-NY and IDS.
3. You cannot alter or change the provisions of any insurance policy or
annuity contract distributed by IDSL-NY. You also cannot incur any
liability or expense on behalf of IDSL-NY
4. You agree to and authorize the assignment of any debt you owe IDSL-NY to
any Affiliate. You also agree to repay any assigned debt to the assignee.
5. When authorized to do so, you will promptly deliver premium receipts and
policies or contracts originating from applications solicited by a Personal
Financial Planner for life insurance and annuities, but only when no
signature by the applicant is required ' and only when applicant appears to
be in good health and the initial premium (if required) has been duly paid,
and other receipts and policies or contracts as required by IDSL-NY.
6. When authorized to do so, you will collect and immediately report and remit
to IDSL-NY renewal premiums or any loan repayments you receive with respect
to insurance and annuities sold by a Personal Financial Planner and any
payments with respect to other Products or Services sold by a Personal
Financial Planner.
7. You will send all payments, money or property you collect or receive to
IDSL-NY without commingling it with your own money or property.
Section VI - Compensation
You will not receive any compensation from IDSL-NY for any of your activities
under this Agreement.
Section VII - Termination
1. This Agreement terminates upon your death. This Agreement may be terminated
by either party without cause upon 5 days' written notice to the other
party and for cause may be terminated immediately by IDSL-NY. This
Agreement, if made as an accommodation for you while serving as a
Paraplanner employed by IDS, will terminate upon the termination of your
Paraplanner's Employment Agreement with IDS. If your agreement with a
Planner of IDS terminates, you agree to immediately notify IDS of such a
termination. A breach by you of any provision of this Agreement will also
terminate this Agreement.
2. If IDSL-NY believes that it may have the right to terminate this Agreement
for cause, IDSL-NY can notify you that it is investigating whether cause
for termination exists. This suspension can be given instead of terminating
this Agreement, in order to provide time for determining the facts. Until
the notice is retracted, it has the same effect on your rights as a notice
of termination for cause. When the investigation has been completed, if not
before, IDSL-NY will notify you whether your suspension is lifted or the
Agreement is terminated for cause. If the Agreement is terminated, the
termination takes effect on the date you received the notice of suspension.
3. (a) All Records and Materials are the property of IDSL-NY, an Affiliate
or one of their associated companies All rights to Records and
Materials that you prepare or create in connection with the performance
of this Agreement are hereby assigned to IDSL-NY. You agree that you
will not reproduce or allow the reproduction of the Records and
Materials in any manner whatsoever except pursuant to written policy or
consent of IDSL-NY.
(b) You are responsible for the safekeeping of these items Such Records and
Materials are open to inspection by IDSL-NY at any time during your
normal business hours You must return them and all copies of them to
IDSL-NY at any time on request. When this Agreement ends, all of these
items remain IDSL-NY property. You must return all of them, together
with any licenses you have or control, without demand or compensation.
<PAGE>
(c) While this Agreement i8 in effect and after it ends, you agree that you
will not reveal the contents of any IDSL-NY property or allow them to
be revealed, except in connection with carrying out your duties under
the Agreement. You will not reveal the names and addresses of IDSL-NY
Clients or any other information about them, including financial
information. You also will not reveal any of this information about
potential Clients, to whom a presentation has been made by an IDSL-NY
Planner, who might reasonably be expected to do business with IDSL-NY
or an Affiliate. You will not allow any of this information about
Clients or potential Clients to be revealed.
(d) You agree that the identity of Clients and potential Clients is
confidential information. For one year after this Agreement ends, you
agree not to use any such information in connection with any business
in competition with IDSL-NY or an Affiliate.
4. (a) You must not, without the written consent of IDSL NY, use any
information you acquired while this Agreement was in force in a manner
adverse to the interests of IDSL-NY or an Affiliate. You also must not:
(1) Encourage or induce anyone to terminate an agreement with IDSL-NY
or an Affiliate without IDSL-NY's consent;
(2) Encourage or induce any annuity or policy holder to give up a
policy or contract; or
(3) Promote or make unwarranted claims against IDSL-NY or an
Affiliate.
(b) All of the above provisions apply while the Agreement is in effect and
after it ends.
5. For one year after this Agreement ends, you agree that you will not, in the
territory where you acted as a Paraplanner under this or any other
agreement with IDSL-NY or an Affiliate, directly or indirectly offer for
sale, sell or seek an application for any Product or Service issued or
provided by any company to or from a Client you contacted, dealt with or
learned about while you represented IDSL-NY or an Affiliate or because of
that representation. You are excepted from this restriction only if you
carry out these activities as a Planner or manager of IDSL-NY or with the
written consent of IDSL-NY.
6. You must not do anything to damage the goodwill of IDSL-NY or an Affiliate.
7. (a) You agree that:
(1) The violation of the provisions in paragraphs 3, 4, 5 and 6 of
this section will result in damage to IDSL-NY that cannot be
determined exactly and for which IDSL-NY has no adequate remedy
under the law; and that
(2) IDSL-NY has the specific right to enforce these provisions; and
that
(3) IDSL-NY is entitled to an injunction to keep you from violating
the provisions or to enforce them.
(b) If a dispute involving this Agreement is submitted for arbitration
under the Code of Arbitration Procedure of the National Association of
Securities Dealers or otherwise, you agree that IDSL-NY is entitled to
an injunction by a court of competent jurisdiction to keep you from
violating these restrictions while the arbitration is pending.
Section VIII - Miscellaneous
1. This Agreement is a New York contract, governed by New York law.
2. If IDSL-NY waives any provision of this Agreement, the waiver applies only
to that provision, not to any other parts of the Agreement. A waiver is
effective only when it is in writing and signed by an authorized IDSL-NY
officer.
3. If the laws of any state prohibit any provision of this Agreement, the laws
apply only to that provision. They do not invalidate the remaining portion
of the Agreement.
4. Any notice to IDSL-NY under this Agreement must be given to the home office
of IDSL-NY in Albany, New York. Any notice given to you under this
Agreement is considered to have been given if delivered to you in person or
mailed to your last known address on file with the IDSL-NY home office in
Albany.
5. You and IDSL-NY both acknowledge that no oral or written representations
were made about this Agreement or about the relationship between you and
IDSL-NY that are not set forth in this Agreement. Your rights and IDSL-NY's
rights are governed only by this Agreement and by any other subsequent
written agreements or riders between you and IDSL-NY and signed by an
authorized officer of IDSL-NY.
Section IX - Nonassignable
You may not assign this Agreement without IDSL-NY's written consent.
<PAGE>
Section X - Prior Agreements
This Agreement terminates and supersedes any existing agreements between the
parties whether executed effective the same date as this agreement or otherwise.
However, this provision does not impair your right to any commissions or
overwriting payable under such an agreement for business written under that
agreement or your right to any compensation earned and unpaid under that
agreement.
Section XI - Effective Date
IN WITNESS of the provisions of this Agreement as described above, you and
IDSL-NY have entered into this Agreement with the understanding that it becomes
effective on , 19 .
IDS Life Insurance Company of New York
By
Paraplanner Assistant Secretary
D.O. Number
Paraplanner No.
VARIABLE ANNUITY AND LIFE INSURANCE DISTRIBUTION AGREEMENT
This Variable Annuity and Life Insurance Distribution Agreement ("Agreement") by
and between IDS Life Insurance Company of New York ("IDSLNY"), a New York
corporation, and IDS Financial Services, Inc. ("IDS"), a Delaware corporation,
with respect to the sale of variable annuity and life insurance contracts in the
State of New York, all in consideration of the premises and the mutual
agreements herein contained,
WITNESSETH THAT:
1. IDSLNY is licensed in the State of New York by the New York Insurance
Department to conduct a life insurance, annuities, and accident and health
insurance business. IDS Life of New York has established several separate
accounts, ("the Accounts"), for the purpose of providing variable annuity
contracts and life insurance policies. IDSLNY was organized under the laws of
the State of New York and will secure all necessary approvals from the
Superintendent of Insurance to sell its variable annuity contracts in New York.
2. IDS is registered with the National Association of Securities Dealers, Inc.
("NASD") as a broker-dealer under the Securities Exchange Act of 1934 ("1934
Act") and is qualified to do business as a foreign corporation in the State of
New York. It will seek approval from the New York Superintendent of Insurance to
sell variable annuity contracts and life insurance policies as agent for IDSLNY.
3. IDSLNY hereby appoints IDS to solicit and procure, within the State of New
York, applications for variable annuity contracts and life insurance policies to
be issued by IDS Life of New York through the Accounts. As used herein, the term
"variable annuity contract" or "variable life insurance policy" means any
annuity contract or life insurance policy under which all or any part of the
benefits may be paid on a variable basis.
4. No person affiliated with IDS shall offer or sell IDSLNY variable annuity
contracts or life insurance policies unless duly licensed (a) as an "associated
person" of IDS pursuant to the 1934 Act, and not subject to a bar or suspension
order thereunder and (b) as an insurance agent for IDSLNY under the New York
Insurance Law. Such qualification and licensing shall be the sole responsibility
of IDS.
<PAGE>
5. Sales compensation of IDS managers and financial planners with respect to
each IDSLNY variable annuity contract or life insurance policy sold shall be
paid in accordance with compensation schedules published from time to time by
IDS. Any compensation payable shall be subject to the terms and conditions
contained in the form of agreements between IDS and its managers and financial
planners, as amended.
6. It is agreed, with respect to those services which are to be provided to
IDSLNY upon an allocated cost basis by IDS, that any such method of allocation
or classification of expenses incurred or services rendered shall be in
conformance with Regulation 33 of the New York Insurance Department. If at any
time either IDSLNY or IDS can reasonably demonstrate that any method of
allocation is more equitable in conformance with such Regulation 33, the current
method of allocation shall then be subject to renegotiation. In any event,
review of all expenses for the year will be made annually, to make all necessary
adjustments in the amounts billed hereunder in order to conform them with the
amount of such expenses actually incurred.
7. For the solicitation of applications by IDS through its financial planners,
and for the motivational and supervisory services and field training services
performed by IDS, IDSLNY will reimburse IDS for the compensation it becomes
obligated, by reason of IDSLNY's variable annuity or life insurance business,
to pay to its financial planners, supervisors, managers and field trainers,
pursuant to written agreements with such persons; provided, however, that such
agreements have been approved in advance by IDSLNY and comply in all respects
with the insurance laws and regulations of the State of New York: and provided,
further, that IDS hereby agrees that any such agreement will be terminated or
modified by it upon direction of IDSLNY. IDS agrees to hold IDSLNY harmless
from any claim for compensation by any such financial planner or field trainer,
or by any manager or supervisor with respect to his services on behalf of IDS
as contemplated in this agreement
8. IDSLNY agrees to pay IDS its allocated portion of IDS's cost with respect to
variable annuities and life insurance in maintaining and providing so many
division sales offices as may reasonably be required, suitably located and
appointed; staffing each such office with personnel capable of providing
secretarial, filing, and telephone answering services to the sales force;
providing communication services, such as telephone, distribution of mail,
mailing, maintenance of supplies of forms and sales literature, etc., conducting
training schools and sales office training, as needed: supplying the services of
the IDS training and development staff in providing technical assistance and
training with respect to employer-related marketing efforts; developing and
producing audiovisual training aids, and providing technical assistance in the
use thereof; providing technical assistance and training with respect to special
markets; and, generally, providing complete training service and monitoring of
field training activities.
<PAGE>
9. In recognition of the fact that IDS, as a trainer for IDSLNY, incurs certain
overhead or "cost of doing business" expenses which are not directly allocable
to specific variable annuity or life insurance services provided by it to
IDSLNY, IDSLNY agrees to pay IDS a subsistence fee, determined on an equitable
and uniform allocation in conformance with Regulation 33 of the New York
Insurance Department, but without any provision for profit by IDS. It is agreed
that the amount of such fee should be included in all amounts billed to IDSLNY
under this agreement, and shall be subject to annual or more frequent review and
negotiation by IDSLNY.
10. IDS assumes full responsibility for the supervision of its associated
persons in all their activities covered by this agreement.
11. IDSLNY may conduct training programs for IDS sales managers and financial
planners at times and places to be agreed upon, for the purpose of familiarizing
IDS personnel with the provisions of IDSLNY contracts, desirable sales
techniques and administrative procedures
12. IDSLNY will supply IDS with reasonable quantities of current prospectuses as
filed with the Securities and Exchange Commission, quarterly reports, and other
sales material. In selling IDSLNY contracts, IDS shall use only sales material
which has been approved by IDSLNY and filed with the NASD.
13. Purchase applications, IDSLNY prospectus receipts, other IDSLNY forms and
payments received by IDS financial planners will be promptly forwarded to the
appropriate IDS division office. IDS will conduct a review to determine the
suitability of the sale. IDS financial planners shall follow established IDSLNY
procedures regarding forms, applications, prospectus receipts, and other such
matters of administration. After IDS has conducted its review, it will forward
all relevant material, including any of its own completed forms, to IDSLNY's
home office. IDSLNY will then make a decision whether to accept or reject the
variable annuity or life insurance application.
14. Upon issuance, each variable annuity contract or life insurance policy sold
through IDS will be mailed directly from IDS Life of New York to the appropriate
IDS Division Office or to the financial planner for personal delivery to the
policyholder.
15. Except as otherwise provided in the Agreement, all standard IDSLNY
administrative procedures will be followed. IDSLNY will, whenever appropriate,
advise IDS of such procedures.
16. This agreement may be terminated at any time by mutual agreement of the
parties, or by thirty day notice given by either to the other.
<PAGE>
17. This agreement shall become effective July 1st, 1987, subject to applicable
regulatory approvals, and shall supersede all prior agreements between the
parties hereto regarding the distribution of variable insurance policies or
contracts.
18. This agreement shall be governed by New York Law.
IDS Life Insurance Company of New York
BY ________________________________
Vice-President
IDS Financial Services, Inc.
BY ________________________________
Vice-President
IDS Life Insurance Company of New York
Box 5144
Albany, New York 12205
Flexible Premium Survivorship Variable Life Insurance Policy
- - Death benefit payable at last surviving insured's death.
- - Cash surrender value payable on youngest insured's attained insurance age 100.
- - Flexible premiums payable as provided herein.
- - Death Benefit Guarantees as described herein.
- - This policy is nonparticipating. Dividends are not payable.
Insureds: (Jane Doe) (John Doe)
Policy Date: (January 15, 1995)
Policy Number: (9790-1234,567)
Initial Specified Amount: $(250,000)
This is a life insurance policy. It is a legal contract between you, as the
owner, and us, IDS Life Insurance Company of New York, A Stock Company. Please
read your policy carefully.
In consideration of your application and payment of the initial premium, we
issue this policy and we promise to pay the proceeds described in this policy to
the beneficiary if we receive proof satisfactory to us that the last surviving
insured died while this policy was in force. (See "Death Benefits" on page 11.)
The owner and beneficiary are as named in the application unless they are
changed as provided in this policy.
The amount and duration of the death benefit of this policy may increase or
decrease as described herein depending on the investment experience of the
subaccounts.
The policy value of this policy may increase or decrease daily depending on the
investment experience of the subaccounts. There is no guaranteed minimum policy
value.
Notice of your right to examine this policy. If for any reason your are not
satisfied with this policy, return it to us or our representative by the latest
of the:
a) 10th day after you receive it; or
<PAGE>
b) 10th day after we mail or personally deliver to you a written Notice of
Withdrawal Right; or
c) 45th day after the application is signed.
We will then cancel this policy and refund all premiums that you have paid. This
policy will then be considered void from its start.
Signed for and issued by IDS Life Insurance Company of New York in Albany, New
York, as of the policy date shown above.
President:
/s/ Richard W. Kling
Secretary:
/s/ Donna M. Gaglione
<PAGE>
Guide to Policy Provisions
<TABLE>
<CAPTION>
<S> <C>
Policy Data Important Policy Data Information/Page 3
Definitions Important words and meanings/Page 4
Insurance Contract Entire contract; Incontestability;
Suicide provision; Policy exchange;
Misstatement of age or sex; Termination/Page 5
Owner and Beneficiary Owner's rights; Change of ownership; Beneficiary
designation; Change of beneficiary; Assignment/Page 7
Premiums Payment of premiums; Premium allocations; Grace period;
Death benefit guarantees; Reinstatement/Page 8
Death Benefits Death benefit options 1 and 2/Page 11
Policy Change Changes to the specified amount or death benefit
options/Page 12
Policy Values The policy's value and how
it is determined; Monthly
deduction; Cost of insurance;
Continuation of insurance; Basis
of policy values/Page 13
Policy Loans How to request a loan; Interest rate;
Amount of loan; Loan repayment/Page 16
Policy Surrender Cash surrender value; Full and partial surrenders/Page 17
Subaccounts The subaccounts; Net investment factor; Deductions from the
subaccounts;
Transfer of values/Page 18
Payment of Policy Proceeds How the proceeds are paid;
Payment options/Page 20
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Policy Data
<S> <C>
Insureds Issue Age Risk Classifications
John Doe 35 (Male Standard Nonsmoker)
Jane Doe 35 (Female Standard Nonsmoker)
Policy Number 9790-(1234,567)
Type of Policy: Flexible Premium Survivorship Variable Life
Initial Specified Amount: $(250,000)
Minimum Specified Amount: $(250,000)
Initial Death Benefit Option: (Option 1)
Guaranteed Interest Rate: 4% per year
Guaranteed Interest Rate Factor: 1.0032737
Current Loan Interest Rate:
First 10 policy years: 6% per year
All other policy years: 4% per year
Guaranteed Loan Interest Rate: 6% per year
Mortality and Expense Risk change: (See
page 19) .9% on an annual basis
Policy Date: (January 15, 1995)
Monthly Date: (15)
Initial Premium: $(2373.59)
Scheduled Premium: $(2373.59 per year payable annually)
Minimum Initial Premium: $(86.55) per month
<PAGE>
Minimum Initial Premium Period:
(3) years
Death Benefit Guarantee to age 100
premium: $(197.80 per month)
Premium Expense Charge: 9.5% of all premium payments
Policy Fee: $30 per month for first 15 policy years
Partial Surrender Fee: ($25.00 or 2% of amount surrendered, whichever is less)
Table of Surrender Charges
</TABLE>
Policy Year Beginning of year End of year
1 - 5 $1000.00 $1000.00
6 1000.00 900.00
7 900.00 800.00
8 800.00 700.00
9 700.00 600.00
10 600.00 500.00
11 500.00 400.00
12 400.00 300.00
13 300.00 200.00
14 200.00 100.00
15 100.00 0.00
This table applies to the initial specified amount for the first 15 policy
years. After year 5, surrender charges decrease monthly.
The premium payments shown above may not be sufficient to continue the policy
and coverage in force. The period for which the policy and coverage will
continue in force will depend on: 1) the amount, timing, and frequency of
premium payment; 2) changes in the specified amount and the death benefit
options; 3) change in the interest rates credited to the fixed account and in
the investment performance of the subaccounts; 4) changes in the monthly cost of
insurance deductions from the policy value for this policy and any benefits
provided by riders to this policy; and 5) loan and partial surrender activity.
<PAGE>
Investment Options Initial Premium Allocations
IDS Life of New York Fixed Account 0.000%
IDS Life of New York Account 8
Subaccounts that invest in portfolios ("the Portfolios") of the IDS Life
Series Fund, Inc.:
Equity Subaccount 70.000%
Income Subaccount 15.000%
Int'l Subaccount 0.000%
Money Market Subaccount 0.000%
Managed Subaccount 15.000%
Government Securities Subaccount 0.000%
Schedule of Benefits and Riders
<TABLE>
<CAPTION>
Annual
Effective Date Expiration Date Cost of Insurance
<S> <C> <C> <C>
Flexible Premium
Survivorship Variable Life
(January 15, 1995) See policy form See policy form
Four-Year Team Insurance
Rider Amount of Insurance:
($305,000)
(January 15, 1995) (January 15, 1999) See rider form
Policy Split Option Rider
(January 15, 1995) (January 15, 2046) ($180.00)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Guaranteed Maximum Annual Cost of Insurance Rates per $1,000
Policy Annual Policy Annual
Year Rate Year Rate
<S> <C> <C> <C> <C>
1 $.12 36 $11.76
2 .12 37 13.92
3 .12 38 16.56
4 .12 39 19.68
5 .12 40 23.40
6 .12 41 27.72
7 .12 42 32.52
8 .12 43 38.04
9 .12 44 44.04
10 .12 45 50.88
11 .12 46 58.68
12 .12 47 67.56
13 .12 48 77.88
14 .24 49 89.52
15 .24 50 102.48
16 .36 51 116.52
17 .36 52 131.52
18 .48 53 147.24
19 .60 54 163.68
20 .72 55 180.96
21 .84 56 199.08
22 1.08 57 218.52
23 1.32 58 239.76
24 1.56 59 264.48
25 1.80 60 296.16
26 2.16 61 341.64
27 2.52 62 414.12
28 3.00 63 537.24
29 3.60 64 743.88
30 4.32 65 999.96
31 5.16
32 6.12
33 7.32
34 8.52
35 10.08
</TABLE>
<PAGE>
Definitions
The following words are used often in this policy. When we use these words, this
is what we mean:
accumulation unit
An accounting unit used to calculate the policy value of the subaccounts. It is
a measure of the net investment results of each of the subaccounts.
Attained insurance age
Each 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
The policy proceeds if the policy is surrendered in full, or the amount payable
on the youngest insured's attained insurance age 100. It is the policy value
minus indebtedness, minus surrender charges as shown under Policy Data.
Death benefit guarantee to age 100
A guarantee that the policy will not lapse before the youngest insured's
attained insurance age 100.
Death benefit guarantee to age 100 premium
The premium required to keep the death benefit guarantee to age 100 in effect.
The death benefit guarantee to age 100 premium is shown under Policy Data.
Fixed account
Our general investment account. It is made up of our 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.
In force
The insureds' lives remain insured under the terms of this policy.
Indebtedness
All existing loans on this policy plus policy loan interest that has been
accrued or added to the policy loan.
Insurance age
The issue age shown under Policy Data for each insured as determined by us from
the birthdates stated in the application.
<PAGE>
Insureds
The persons whose lives are insured by this policy.
Last surviving insured The second to die of the insureds.
Monthly date
The same day each month as the policy date. If there is no monthly date in a
calendar month, the monthly date will be the first day of the next calendar
month.
Net premium
The portion of a premium paid that is credited to the policy as described in the
Policy Values section. It is the premium paid minus the premium expense charge
shown under Policy Data.
Policy anniversary
The same day and month as the policy date each year that the policy remains in
force.
Policy date
The date from which policy anniversaries, policy years, and policy months are
determined. Your policy date is shown under Policy Data.
Policy value
The sum of the fixed account value and the variable account value.
Premium expense charge
The premium expense charge of 9.5% of all premiums paid consists of three parts.
The parts are: 7.25% sales charge; 1.0% premium tax charge; and 1.25% federal
tax charge. We reserve the right to change the federal tax charge part if
applicable federal law changes our federal tax burden, subject to the approval
of the Superintendent of Insurance.
Proceeds
The amount payable by this policy as follows:
1. upon death of the last surviving insured prior to the youngest insured's
attained insurance age 100, proceeds will be the death benefit under the
option in effect as of the date of that insured's death, minus any
indebtedness;
2. upon the youngest insured's attained insurance age 100, proceeds will be
the cash surrender value;
3. upon surrender of the policy, the proceeds will be the cash surrender
value.
<PAGE>
Pro-rata basis
Allocation to the fixed account and each of the subaccounts. It is proportionate
to the value (minus any indebtedness in the fixed account) that each bears to
the policy value, minus indebtedness.
Specified amount
An amount used to determine the death benefit and the proceeds payable upon
death of the last surviving insured prior to the youngest insured's attained
insurance age 100. The initial specified amount is shown under Policy Data.
Subaccounts
The subaccounts named under Policy Data. Each is an investment division of the
variable account and invests in a particular portfolio.
Terminate
This policy is no longer in force. All insurance coverage under this policy has
stopped.
Valuation date
Each day on which the New York Stock Exchange is open for trading, or any other
day on which there is a sufficient degree of trading in the investments of the
subaccounts such that the current value might be materially affected.
Valuation period
The interval of time commencing at the close of business on each valuation date
and ending at the close of business on the next valuation date.
Variable account value
The sum of the values of the subaccounts under this policy.
We, our, us
IDS Life Insurance Company of New York.
Written request A request in writing signed by you.
Youngest insured
The insured with the youngest issue age as shown under Policy Data.
You, your
The owner of this policy. The owner may be someone other than an insured. The
owner is shown in the application unless the owner has been changed as provided
in this policy.
<PAGE>
The Insurance Contract
What is the entire contract of insurance?
This policy and the copy of the application attached to it and any endorsements
or riders added to the policy are the entire contract between you and us.
No one except one of our corporate officers (President, Vice President,
Secretary, or Assistant Secretary) can change or waive any of our rights or
requirements under this policy. That person must do so in writing. None of our
representatives or other persons have the authority to change or waive any of
our rights or requirements under this policy.
In issuing this policy, we have relied upon the application. The statements
contained in the application are considered representations and not warranties.
No statement made in connection with the application will be used by us to void
the policy or to deny a claim unless that statement is part of the application.
When will the policy become incontestable?
After this policy has been in force during the lifetime of either insured for
two years from the policy date, we cannot contest the policy except for
nonpayment of premiums.
Is there a suicide exclusion?
If either of the insureds die by suicide within two years from the policy date,
the only amount payable by us will be the premium paid, minus any indebtedness
and partial surrenders. The policy will terminate as of the date of the first
death by suicide. We will pay any amount payable to you, if living, otherwise to
your estate.
You may purchase a new life insurance policy from us on the life of the
surviving insured. You must request, in writing, the new policy no later than 60
days after the date of the first death by suicide. If you are not living, the
request and purchase may be made by the surviving insured.
The new policy must be an individual permanent plan of insurance we then offer.
The initial death benefit of the new policy cannot exceed one half of the death
benefit of this policy. The new policy will be issued using the rates in effect,
and based on the surviving insured's attained insurance age, and the risk
classification under this policy for the surviving insured.
Can you exchange this policy?
Yes. Once during the first two policy years, you have the right to exchange this
policy for a flexible premium life insurance policy that provides for benefits
that do not vary
<PAGE>
with the investment return of the subaccounts. This is done by transferring,
without charge, the entire policy value to the fixed account.
You also have the right to exchange this policy for a flexible premium
adjustable life policy that provides for benefits that do not vary with the
investment return of the subaccounts in the event of a material change in the
investments of the subaccounts. The option to exchange is exercisable within 60
days after (a) the effective date of such change in the investment policy, or
(b) the receipt of the notice of the change in investments, whichever is later.
The exchange is done by transferring, without charge, the entire policy value to
the fixed account.
Do you have voting rights?
All policy owners with variable account values will have voting rights. So long
as federal law requires, you may have the right to vote at the meetings of the
Variable Policy Owners. If you have voting rights, we will send you a notice of
the time and place of any such meetings. The notice will also explain matters to
be voted upon and how many votes you will have.
Do state laws apply?
Yes. This policy is governed by the law of the state in which it is delivered.
The values and benefits of this policy are at least equal to those required by
such state.
What if an insured's age or sex has been misstated?
If an insured's age or sex has been misstated, the proceeds payable upon the
last surviving insured's death will be:
1. the policy value on the date of death; plus
2. the amount of insurance that would have been purchased by the cost of
insurance deducted for the policy month during which the last surviving
insured's death occurred, if that cost had been calculated using the cost
of insurance rates for the correct age and sex; minus
3. any indebtedness on the date of death.
When does this policy terminate?
This policy will terminate on the earliest of the following:
1. the date you request that coverage ends; or
2. the date you surrender the policy in full; or
<PAGE>
3. the end of the grace period; or
4. the date of death of the last surviving insured; or
5. the youngest insured's attained insurance age 100.
Does this policy qualify for favorable tax treatment?
This policy is intended to qualify for treatment as a life insurance policy
under Sections 72, 101, and 7702 of the Internal Revenue Code as they now exist
or may later be amended.
We reserve the right to endorse this policy to comply with:
1. future changes in the Internal Revenue Code;
2. any regulations or rulings issued under the Code; and
3. any other requirements imposed by the Internal Revenue Service;
with respect to remaining qualified for treatment as a life insurance policy
under these Code sections.
We will provide the owner with a copy of any such endorsement.
Can we delay or suspend payment of proceeds?
Yes. We have the right to defer payments from the subaccounts of the full cash
surrender value, partial surrenders, policy loans, and any death benefits in
excess of the specified amount for any period:
1. when the New York Stock Exchange is closed; or
2. when trading on the New York Stock Exchange is restricted; or
3. when an emergency exists, and as a result:
(a) disposal of securities held in the subaccounts is not reasonably
practicable; or
(b) it is not reasonably practicable to fairly determine the value of the
assets of the subaccounts.
Rules and regulations of the Securities and Exchange Commission will govern as
to whether the conditions set forth in the above items 2 and 3 exist.
<PAGE>
For full surrenders, partial surrenders, and policy loans from the fixed
account, we have the right to postpone the payment for up to 6 months. If we
postpone payment of a full or partial surrender more than 10 days, we will also
pay you interest at a rate of at least 4% per year for the amount postponed for
the period of postponement.
We also have the right to defer payments of the full cash surrender value,
partial surrenders, policy loans, and any death benefit in excess of the
specified amount which derive from a premium payment made by a check that has
not cleared the banking system (good payment has been collected).
<PAGE>
Owner and Beneficiary
What are your rights as owner of this policy?
As owner, you are entitled to exercise all the rights and privileges of this
policy while either or both of the insureds are living.
How can you change ownership of this policy?
You can change the ownership of this policy by written request on a form
approved by us. The change must be made while an insured is living. Once the
change is recorded by use, it will take effect as of the date of your request,
subject to any action taken or payment made by us before the recording.
To whom are the proceeds paid on the last surviving insured's death?
We will pay the proceeds to the beneficiary or beneficiaries whom you have named
in the application unless you have since changed the beneficiary as provided
below. If the beneficiary has been changed, we will pay the proceeds in
accordance with your last change of beneficiary request.
How do you change the beneficiary?
By making a satisfactory written request to us, you may change the beneficiary
anytime while an insured is living. Once we record the change, it will take
effect as of the date of your request, subject to any action taken or payment
made by us before the recording.
If one or all of the beneficiaries die before the last surviving insured's
death, to whom are the proceeds payable?
Only those beneficiaries who are living at the last surviving insured's death
may share in the proceeds. If no beneficiary survives the last surviving
insured, we will pay the proceeds to you, if living; otherwise to your estate.
Can you assign this policy as collateral?
Yes. While an insured is living, you can assign this policy or any interest in
it. Your interest and the interest of any beneficiary are subject to the
interest of the assignee. An assignment is not a change of ownership and an
assignee is not an owner as these terms are used in this policy. We will pay any
policy proceeds payable to the assignee in a single sum.
<PAGE>
You must give us a copy of any assignment. Any assignment is subject to any
action taken or payment made by us before the assignment was recorded at our
home office. We are not responsible for the validity of any assignment.
<PAGE>
Premiums
What are the premium payments for this policy?
Three types of premium payments apply to this policy. We call these:
1. the initial premium;
2. scheduled premiums; and
3. unscheduled premiums.
What is the initial premium?
The initial premium is the premium due on the policy date of this policy.
What is the scheduled premium? Can it be changed?
The scheduled premium is the premium shown under Policy Data. It is payable at
the stated interval that you selected in the application. However, no scheduled
premium may be paid on or after the youngest insured's attained insurance age
100.
The scheduled premium will serve only as an indication of your intent as to the
frequency and amount of future premium payments. You may change the amount or
interval at any time by written request. You may also skip scheduled premium
payments. Any change in amount may be subject to applicable tax laws and
regulations.
Scheduled premiums may be paid annually, semi-annually, or quarterly. Payment at
any other interval must be approved by us. Scheduled premium payments must be at
least $50. We reserve the right to limit the amount of any increase in scheduled
premiums.
Can you make unscheduled premium payments?
Yes. You can make additional premium payments of at least $50 at any time prior
to the youngest insured's attained insurance age 100. We reserve the right to
limit the number and amount of these unscheduled premiums.
Where are premiums payable?
Premiums must be paid or mailed to us at our home office or to an authorized
agent. A check or draft given for all or part of a premium, unless paid upon its
presentation to the bank or person drawn on, will not be considered payment.
<PAGE>
How are premium payments allocated?
Premium payments applied to the fixed account and the subaccounts will be
allocated as specified in your application for this policy. You may choose any
whole percentage for each account from 0% to 100%. By written request, you may
change this allocation. The change will be effective for all premiums received
after our receipt of the change. Premiums received before the policy date will
be allocated initially to the fixed account. On the policy date, the policy
value in the fixed account will be transferred to the subaccounts or remain in
the fixed account in accordance with your premium allocation percentages. For
any premium received on or after the policy date, the premium will be allocated
in accordance with your premium allocation percentages.
Can we restrict premium payments?
We reserve the right to refuse premiums and to return premiums with interest if
such premiums would disqualify your policy from:
1. treatment as a life insurance policy under Code Sections 72, 101, and 7702;
or
2. favorable tax treatment under Code Sections 72 and 101.
Is there a grace period for paying premiums?
Yes. If on a monthly date, the cash surrender value is less than the monthly
deduction for the policy month following such monthly date, a grace period of 61
days will begin.
The grace period will give you time to pay a premium sufficient to continue your
coverage. We will mail, between 15 and 45 days before the end of the grace
period, to your last known address, a notice as to the premium needed so that
the next three monthly deductions can be made.
If the premium is not paid within the grace period, all coverage under this
policy will terminate without value at the end of the 61-day grace period.
If the last surviving insured's death occurs during the grace period and
benefits become payable under the policy, any overdue monthly deductions will be
deducted from the proceeds. If the death benefit guarantee is in effect as
described in the provisions below, the policy will not enter the grace period.
In addition, to allow you the opportunity to increase your policy value
gradually so that the cash surrender value is sufficient to pay the monthly
deduction, you may choose to pay only the minimum initial premium during the
minimum initial premium period as long as the policy value minus indebtedness
equals or exceeds the monthly deduction. The policy will not enter the grace
period during the minimum initial premium period as shown under Policy Data, if:
<PAGE>
1. on a monthly date, the policy value minus indebtedness equals or exceeds
the monthly deduction for the policy month following such monthly date; and
2. the sum of all premiums paid, minus any partial surrenders, and minus any
indebtedness equals or exceeds the minimum initial premium, as shown under
Policy Data, times the number of months since the Policy Date, including
the current month.
What is the death benefit guarantee?
The death benefit guarantee described below will protect the policy from lapsing
even if the cash surrender value is insufficient to pay the monthly deduction on
a monthly date. Sufficient premiums as described in the provision must be paid
to keep the death benefit guarantee in effect.
What is the death benefit guarantee to age 100?
Until the youngest insured's attained insurance age 100, this policy will not
terminate even if the cash surrender value is insufficient to pay the monthly
deduction on a monthly date if the death benefit guarantee to age 100 is in
effect.
The death benefit guarantee to age 100 will remain in effect if, on each monthly
date, (a) equals or exceeds (b) where:
(a) is the sum of all premiums paid, minus any partial surrenders, and minus
any indebtedness; and
(b) is the death benefit guarantee to age 100 premium, as shown under Policy
Data, times the number of months since the Policy Date, including the
current month.
Premiums may be paid on other than a monthly basis as long as the sum of
premiums paid is at least equal to the total required death benefit guarantee to
age 100 premiums at all times.
If on a monthly date, sufficient premiums have not been paid to maintain the
death benefit guarantee to age 100, an additional period of 61 days will be
allowed for the payment of a premium sufficient to keep the death benefit
guarantee to age 100 in effect. If the premium is not paid within this period,
the death benefit guarantee to age 100 provision will no longer be in effect,
and cannot be reinstated. Your policy will also lapse if, as described in the
"Is there a grace period for paying premiums" provision, the cash surrender
value is insufficient to pay the monthly deduction on a monthly date.
<PAGE>
The death benefit guarantee to age 100 premium will change if: 1) the specified
amount is decreased; 2) the death benefit option is changed; or 3) riders are
changed or terminated. The new death benefit guarantee to age 100 premium will
apply from the date of the change.
Can you ever reinstate this policy?
This policy may be reinstated within 5 years after the end of the grace period,
unless it was surrendered for cash. To do this, we will require all of the
following:
1. your written request to reinstate the policy;
2. evidence that both insureds remain insurable, or evidence for the last
surviving insured and due proof that the first death occurred before the
date of lapse;
3. payment of a premium that will keep the policy in force for at least 3
months;
4. payment of the monthly deductions that were not collected during the grace
period; and
5. payment or reinstatement of any indebtedness.
The policy value and cash surrender value on the date of reinstatement will be
equal to:
1. the policy value and cash surrender value on the date of lapse; plus
2. the payment of a premium that will keep the policy in force for at least 3
months; plus
3. payment of the monthly deductions that were not collected during the grace
period; minus
4. the monthly deductions that were not collected during the 61-day grace
period.
Surrender charges on the date of reinstatement equal the surrender charges on
the date of lapse.
The effective date of a reinstated policy will be the monthly date on or next
following the date on which we approve the application for reinstatement.
The suicide and incontestability periods will apply from the effective date of
reinstatement. We will have two years from the effective date of reinstatement
to contest the truth of statements or representations in the reinstatement
application.
The death benefit guarantee will not be reinstated.
<PAGE>
Death Benefits
What are the proceeds payable upon death of the last surviving insured prior to
the youngest insured's attained insurance age 100?
The proceeds payable upon the death of the last surviving insured will be the
death benefit in effect on the date of that insured's death, minus any
indebtedness. The death benefit will be calculated based on the death benefit
option and specified amount in effect as of the last surviving insured's death.
One of two options will apply: Option 1 or 2. Both options are described below.
What is Option 1?
The death benefit under this option will be the greater of:
1. the specified amount; or
2. the percentage of policy value from the table below on the date of the last
surviving insured's death if death occurs on a valuation date, or on the
next valuation date following the date of death.
The initial specified amount is show under Policy Data. Such amount may be
changed as explained in the Policy Change section. A partial surrender will
reduce the specified amount.
What is Option 2?
The death benefit under this option will be the greater of:
1. the policy value of this policy, plus the specified amount; or
2. the percentage of policy value from the table below on the date of the last
surviving insured's death if death occurs on a valuation date, or on the
next valuation date following the date of death.
The initial specified amount is shown under Policy Data. Such amount may be
changed as explained in the Policy Change section.
The youngest insured's attained insurance age in the table below refers to the
youngest life insured or the age such person would have reached.
<PAGE>
<TABLE>
<CAPTION>
Youngest Applicable Youngest Applicable Youngest Applicable
Insured's Percentage of Insured's Percentage of Insured's Percentage of
Attained Policy Value Attained Policy Value Attained Policy Value
------------ ------------ ------------
Insurance Age Insurance Age Insurance Age
- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
40 or less 250 53 164 67 118
41 243 54 157 68 117
42 236 55 150 69 116
43 229 56 146 70 115
44 222 57 142 71 113
45 215 58 138 72 111
46 209 59 134 73 109
47 203 60 130 74 107
48 197 61 128 75-95 105
49 191 62 126 96 104
50 185 63 124 97 103
51 178 64 122 98 102
52 171 65 120 99 101
66 119 100 100
</TABLE>
The percentage is designed to ensure that the policy meets the provisions of
Federal tax law which require a minimum death benefit in relation to policy
value for the policy to qualify as life insurance.
What are the proceeds payable on the youngest insured's attained insurance age
100?
The proceeds payable on the youngest insured's attained insurance age 100 will
be the cash surrender value.
<PAGE>
Policy Change
Can you request to change the benefits of this policy?
Yes. While this policy is in force, you may request to decrease the specified
amount. You may also change the death benefit option from 1 to 2 or from 2 to 1.
All such changes may be made only prior to the youngest insured's attained
insurance age 100 and will be subject to the rules below.
What are the rules for decreasing the specified amount?
You may decrease the specified amount once per policy year by written request.
Such request may only be made after the first policy year. The rules are as
follows:
1. The specified amount that remains in force after a requested decrease may
not be less than the minimum specified amount show under Policy Data.
2. We reserve the right to decline to make any specified amount decrease that
we determine would cause this policy to fail to qualify as life insurance
under applicable tax laws.
How do you change the death benefit option?
You may change the death benefit option once per policy year by written request.
You do not need to provide additional evidence of insurance. The change in
option will be effective on the monthly date on or next following the date we
approve your request.
If the death benefit is Option 2, it may be changed to Option 1. The new
specified amount will be the Option 2 death benefit as of the effective date of
change.
If the death benefit is Option 1, it may be changed to Option 2. The new
specified amount will be the Option 1 death benefit, minus the policy value as
of the effective date of change.
The specified amount after a change may not be less than the minimum specified
amount shown under Policy Data.
We reserve the right to decline to make any death benefit option change that we
determine would cause this policy to fail to qualify as life insurance under
applicable tax laws.
<PAGE>
Policy Values
What is the policy's value?
On a given date, the policy value is equal to the fixed account value plus the
variable account value.
What is the fixed account value?
On the policy date, the fixed account value equals: 1) the portion of the
initial net premium allocated to the fixed account, plus any interest credited
on such portion before the policy date; minus 2) the portion of the monthly
deduction allocated to the fixed account for the first policy month.
On any subsequent date, the fixed account value will be calculated as:
a + b + c minus d minus e
where:
(a) is the fixed account value on the preceding monthly date plus interest
thereon from the preceding monthly date to the date of calculation;
(b) is the portion of net premiums allocated to the fixed account and
received since the preceding monthly date, plus interest on such portions
from the date such net premiums were received to the date of calculation;
(c) is the amount of any transfers from the subaccounts, including loan
transfers, to the fixed account since the preceding monthly date, plus
interest on such transferred amounts from the effective dates of such
transfers to the date of calculation;
(d) is the amount of any transfers from the fixed account, including loan
repayment transfers, to the subaccounts since the preceding monthly date,
plus interest on such transferred amounts from the effective dates of
such transfers to the date of calculation; and
(e) is the amount of any partial surrenders and partial surrender fees
allocated to the fixed account since the preceding monthly date, plus
interest on such surrendered amounts from the effective date of such
partial surrenders to the date of calculation.
If the date of calculation is a monthly date, the fixed account value will also
be reduced by the portion of the monthly deduction allocated to the fixed
account for the policy month following the monthly date.
<PAGE>
What is the variable account value?
The variable account value is the sum of the values of the subaccounts under
this policy as shown under Policy Data.
On the policy date, the value of each subaccount equals: 1) the portion of the
initial net premium allocated to the subaccount, plus any interest credited on
such portion before the policy date; minus 2) the portion of the monthly
deduction allocated to the subaccount for the first policy month.
On any subsequent date the value of each subaccount will be calculated as
described below if that subsequent date is a valuation date. If that subsequent
date is not a valuation date, the value of each subaccount will be calculated on
the next valuation date.
On any valuation date, the value of each subaccount will be calculated as:
a + b + c minus d minus e minus f
where:
(a) is the value of the subaccount on the preceding valuation date, multiplied
by the net investment factor for the current valuation period;
(b) is the net premiums received and allocated to the subaccount during the
current valuation period;
(c) is the amount of any transfers from other subaccounts or the fixed account,
including loan repayment transfers, to the subaccount during the current
valuation period;
(d) is the amount of any transfers to other subaccounts or the fixed account,
including loan transfers, from the subaccount during the current valuation
period;
(e) is the amount of partial surrender and partial surrender fee allocated to
the subaccount during the current valuation period;
(f) is the portion of any monthly deduction during the current valuation
period allocated to the subaccount for the policy month following the
monthly date.
What is the monthly deduction?
A deduction will be made each monthly date prior to the youngest insured's
attained insurance age 100 for the cost of insurance, policy fee, and the cost
of any riders for the
<PAGE>
policy month following such monthly date. The monthly deduction for a policy
month will be calculated as:
(a) + (b) + (c)
where:
(a) is the cost of insurance for the policy month;
(b) is the policy fee shown under Policy Data; and
(c) is the cost of any policy riders for the policy month.
The monthly deduction will be taken from the fixed account and the subaccounts
according to the monthly deduction allocation percentages specified in your
application for this policy. You may choose any whole percentage for each
account from 0% to 100%. By written request, you may change the percentages.
Any change will be effective for monthly deductions taken thereafter.
The monthly deduction will be taken from the fixed account and the subaccounts
on a pro-rata basis if: 1) the value in the fixed account or in any subaccount
is insufficient to pay the portion of the monthly deduction so allocated; or 2)
you do not specify the account or subaccounts from which the monthly deduction
is to be taken.
How is the cost of insurance calculated?
The cost of insurance for a policy month is calculated as:
{a x (b minus c)} + d
where:
(a) is the cost of insurance rate described below;
(b) is the death benefit on the monthly date divided by the guaranteed interest
rate factor shown under Policy Data;
(c) is the policy value at the beginning of the policy month. At this point,
the policy value has been reduced by the monthly deduction except for the
part of the monthly deduction that pays for the cost of insurance; and
(d) is the amount of any flat extra insurance charges as shown under Policy
Data.
If the policy value is included in the specified amount and there have been
changes in the specified amount, the policy value is considered a pro-rata part
of each specified amount.
<PAGE>
What is the cost of insurance rate?
The cost of insurance rate is the rate applied to the insurance under this
policy to determine the monthly deduction. The cost of insurance rate used to
determine the monthly deduction is the annual cost of insurance rate divided by
12. Cost of insurance rates are based on each insured's sex, insurance age, risk
classification and the number of years the policy has been in force.
We may change the cost of insurance rates from time to time. Any change in the
cost of insurance rate will apply to all individuals of the same risk class as
each of the insureds. We will determine cost of insurance rates based on our
expectations as to future mortality experience. The cost of insurance rates will
not exceed the Guaranteed Maximum Annual Cost of Insurance Rates shown under
Policy Data. These rates are based on the 1980 Commissioners Standard Ordinary
Smoker or Non-smoker Mortality Tables, Age Last Birthday.
What interest rate is used to determine the fixed account value?
The guaranteed interest rate applied in the calculation of the fixed account
value is the guaranteed interest rate shown under Policy Data. Interest in
excess of the guaranteed interest rate may be applied in the calculation of the
fixed account value at such increased rates and in such manner as we may
determine.
Interest in excess of the guaranteed interest rate shown under Policy Data will
not be applied to the portion of the policy value that equals any indebtedness
due us.
If we apply excess interest, it will be applied daily in the calculation of the
fixed account value and will result in additional fixed account value. The
excess interest rate will be applied to the fixed account value, net premiums,
transfers, partial surrender amounts, and partial surrender fee as used in the
calculation of the fixed account value.
Any change in the excess interest rate will apply to all policies of the same
class. Excess rates will be determined by us based on our expectations as to
future interest rates.
For how long will the policy value continue your insurance?
Insurance coverage under this policy and any benefits provided by riders will be
continued until the cash surrender value is insufficient to pay the monthly
deduction; or the youngest insured's attained insurance age 100. See the "Is
there a grace period for paying premiums" provision and "What is the death
benefit guarantee" provision.
<PAGE>
What is the basis used for policy values?
Values and reserves are equal to or greater than those required by law. Where
required, a detailed statement of the method of computation of values and
reserves has been filed with the insurance department of the state where this
policy was delivered.
Will you receive information about the values of this policy?
Yes. At least once a year, we will send you a report that shows:
1. the current policy value;
2. premiums paid since the last report;
3. all charges since the last report;
4. indebtedness on this policy;
5. the current cash surrender value;
6. the current death benefit;
7. partial surrenders since the last report; and
8. any other information required by the New York Superintendent of Insurance.
At any time, upon written request by you, we will provide a projection of future
death benefits and policy values. The projection will be based on (1)
assumptions as to specified amount(s), type of coverage option and future
premium payments as may be specified by you, and (2) such other assumptions as
are necessary and specified by us and/or you.
Is there a paid-up insurance option?
Yes. By written request, the cash surrender value of this policy can be used to
purchase an amount of paid-up insurance. The request may be made in the 30 days
before any policy anniversary prior to the youngest insured's attained insurance
age 100. If you request this option, you will be forfeiting all rights to make
future premium payments. All riders will terminate. The paid-up insurance policy
will be effective as of the policy anniversary after your written request.
The amount and the cash surrender value of the paid-up insurance will be based
on the cost of insurance rates guaranteed in the policy, with 4% interest. This
policy's death benefit and policy value, both as of the date of the paid-up
policy's purchase, will also be used to compute the paid-up policy's insurance
amount. The paid-up policy's insurance amount, minus its cash surrender value,
cannot be greater than this policy's death benefit, minus its policy value. The
amount purchased will remain level and will mature on the youngest insured's
attained insurance age 100. Any cash surrender value that is not used to
purchase the paid-up insurance amount will be paid to you. The amount of paid-up
insurance will not be less than that required by law.
<PAGE>
At any time before the last surviving insured's death, you may surrender the
paid-up insurance for its cash surrender value.
<PAGE>
Policy Loans
Can you borrow money on this policy? How?
By written request or other requests acceptable to us, you may obtain a loan
from us whenever this policy has a loan value. The loan value of this policy is
the only security required for our loan. A loan must be for at least $500. We
will pay interest on the policy value loaned at the guaranteed interest rate
shown under Policy Data.
If you do not specify the accounts from which the loan is to be made, the loan
will be made from the fixed account and the subaccounts on a pro-rata basis. Any
loan and loan interest taken from the fixed account will remain in the fixed
account but will then earn interest at the guaranteed interest rate shown under
Policy Data.
The amount of any loan and any loan interest from the subaccounts will be
transferred from the subaccounts to the fixed account and then earn interest at
the guaranteed interest rate shown under Policy Data.
What is the interest rate charged for a policy loan?
The current loan interest rate is shown under Policy Data. We reserve the right
to increase the current loan interest rate, but it will never exceed the
guaranteed loan interest rate shown under Policy Data.
Loan interest is charged daily and is due at the end of the policy year. If the
loan interest is not paid when it is due, we will increase the amount of
indebtedness in the fixed account to cover the amount due. Loan interest added
to a policy loan will be charged the same loan interest rate as the loan itself.
We will take such interest from the fixed account and the subaccounts using the
monthly deduction allocation percentages.
If the value in the fixed account or any subaccount is insufficient to pay the
additional loan interest, the entire additional loan interest will be taken from
the fixed account and the subaccounts on a pro-rata basis. Any loan interest
taken from the fixed account will remain in the fixed account but will then earn
loan interest at the guaranteed interest rate shown under Policy Data. The
amount of any loan interest taken from the subaccounts will be transferred from
the subaccounts to the fixed account and then earn interest at the guaranteed
interest rate shown under Policy Data.
Any change in the loan interest rate will apply to all policies of the same
class and duration.
We will review the loan interest rate for inforce policies whenever we change
the loan interest rate for new policies. This review will be done no more than
once each policy
<PAGE>
year but no less than once each five policy years. The loan interest rate will
be based on our expectations as to expense, persistency and investment earnings.
What is the maximum loan value of this policy?
You can borrow an amount up to 85% of the policy value minus surrender charges.
We calculate the policy value as of the date of the loan. We reserve the right
to include monthly deductions and interest to pay for the loan until the next
policy anniversary in determining the maximum loan value.
When can you repay your loan?
Your loan can be repaid in full or in part at any time before the last surviving
insured's death and while this policy is in force. A loan that exists at the end
of the grace period may not be repaid unless this policy is reinstated.
Repayments should be clearly marked as "loan repayments"; otherwise, they will
be credited as premiums. They must be in amounts of at least $50. They will be
allocated to the fixed account and the subaccounts according to the premium
allocation percentages in effect unless you tell us otherwise. The portion of
any loan repayments allocated to the fixed account will remain in the fixed
account but will then earn interest at the rate we are then crediting to the
fixed account value. The portion of any loan repayments allocated to the
subaccounts will be transferred from the fixed account to the subaccounts.
What if your loan is not repaid?
Failure to repay a loan or to pay loan interest will not terminate this policy
unless the cash surrender value is insufficient to pay the monthly deduction, as
provided in the Grace Period provision. This would happen if indebtedness
exceeded the policy value, minus surrender charges.
Failure to repay a loan or to pay loan interest will reduce the proceeds payable
upon the death of the last surviving insured and, the cash surrender value.
<PAGE>
Policy Surrender
Can you surrender this policy?
Yes. You may surrender this policy for its cash surrender value at any time.
Your request must be in writing. Upon surrender for the cash surrender value,
this policy will terminate.
The cash surrender value of this policy is:
1. the policy value at the time of surrender; minus
2. any indebtedness on this policy; minus
3. any applicable surrender charges as shown under Policy Data.
Surrender charges are shown under Policy Data. They apply in the first 15 policy
years.
Is a partial surrender possible?
Yes. By written request or other requests acceptable to us, you may partially
surrender this policy for an amount less than the cash surrender value. Partial
surrenders are subject to the rules below and payment of the partial surrender
fee shown under Policy Data. We reserve the right to limit the frequency of
partial surrenders you may request.
If death benefit Option 1 is in effect, both the specified amount and the policy
value will be reduced by the amount of surrender and partial surrender fee. If
death benefit Option 2 is in effect, the policy value will be reduced by the
amount of surrender and the partial surrender fee.
What are the rules for a partial surrender?
The following rules will apply to any partial surrender:
1. partial surrenders may not be made in the first policy year;
2. the minimum amount that may be surrendered is $500;
3. the partial surrender amount cannot exceed 85% of the full cash surrender
value;
4. the specified amount that remains in force may not be less than the minimum
specified amount shown under Policy Data;
5. the surrender amount and partial surrender fee will be deducted from the
policy value at the time of each partial surrender; and
<PAGE>
6. we reserve the right to decline a request for a partial surrender that we
determine would cause this policy to fail to qualify as life insurance
under applicable tax laws.
If you do not specify the accounts from which the surrender is to be made, the
surrender will be made from the fixed account and the subaccounts on a pro-rata
basis.
<PAGE>
Subaccounts
What are the subaccounts?
The subaccounts are separate investment accounts of ours. They are named under
Policy Data. We have allocated a part of our assets for this and certain other
policies to the subaccounts. Such assets remain our property. They cannot be
charged, however, with liabilities from any other business in which we may take
part.
What are the investments of the subaccounts?
Net premiums and transfers will be allocated as you specify. Each subaccount
will buy the investment shown for that subaccount under Policy Data or as later
added or changed.
How do we value the subaccounts?
The subaccount value is determined by multiplying the number of accumulation
units credited to the subaccount by the appropriate accumulation unit values.
What are subaccount accumulation units?
The number of accumulation units for each of the subaccounts is found by
dividing: (1) the amount allocated to the subaccount; by (2) the subaccount's
accumulation unit value for the valuation period in which we received the
premium payment, transfer request, or partial surrender request.
What is the subaccount accumulation unit value?
The value of an accumulation unit for each of the subaccounts was arbitrarily
set at $1 when the first investments were bought. The value for any later
valuation period is found as follows:
The accumulation unit value for a subaccount for the last prior valuation period
is multiplied by such subaccount's net investment factor for the following
valuation period. The result is the accumulation unit value. The value of an
accumulation unit may increase or decrease from one valuation period to the
next.
What is the net investment factor? How is it determined?
The net investment factor is an index applied to measure the investment
performance of a subaccount from one valuation period to the next. The net
investment factor may be greater or less than one; therefore, the value of an
accumulation unit may increase or decrease.
<PAGE>
To find the net investment factor of any such subaccount for any valuation
period, we divide (1) by (2), and subtract (3) from the result, where:
(1) is the net result of:
a. the net asset value per share of the portfolio in which the subaccount
invests determined at the end of the current valuation period; plus
b. the per-share amount of any dividend or capital gain distributions
made by the investment held in the subaccount, if the "ex-dividend"
date occurs during the current valuation period; plus or minus
c. a per-share charge or credit for any taxes reserved for the current
valuation period that we determine to have resulted from the
investment operations of the subaccount;
(2) is the net result of:
a. the net asset value per share of the portfolio in which the subaccount
invests determined at the end of the last prior valuation period; plus
or minus
b. the per-share charge or credit for any taxes reserved for the last
prior valuation period; and
(3) is a factor representing the Mortality and Expense Risk Charge.
What deductions are made from the subaccounts?
The Mortality and Expense Risk Charge compensates us for assuming the mortality
and expense risks under this policy. It is equal, on an annual basis, to .9% of
the daily value of the subaccounts. The deduction will be (1) made from each
subaccount; and (2) computed on a daily basis.
Can the investments of the subaccounts be changed?
This would happen if laws or regulations changed, the investment became
unavailable, or, in the judgment of IDS Life of New York, the investment were no
longer suitable for the subaccounts. If any of these situations occurred, we
would have to right to substitute investments other than those shown under
Policy Data. We would first seek the approval of the Securities and Exchange
Commission and, where required, the insurance regulator of the state where this
policy is delivered.
<PAGE>
Can transfers be made among the subaccounts and the fixed account?
By written request or other requests acceptable to us, you may transfer all or
part of the value of a subaccount to one or more of the other subaccounts or to
the fixed account. The amount transferred, however, must be at least: 1) $250;
or 2) the total value in the subaccount, if less. We reserve the right to limit
such transfers to 12 per policy year. We may suspend or modify this transfer
privilege at any time with the necessary approval of the Securities and Exchange
Commission and the New York Superintendent of Insurance.
You may also transfer from the fixed account to the subaccounts once a year, but
only on the policy anniversary or within 30 days after such policy anniversary.
If you make this transfer, you cannot transfer from the subaccounts back into
the fixed account until the next policy anniversary. If we receive your written
request within 30 days before the policy anniversary date, the transfer from the
fixed account to the subaccounts will be effective on the anniversary date. If
we receive your written request within 30 days after the policy anniversary
date, the transfer from the fixed account to the subaccounts will be effective
on the date we receive the request. The minimum transfer amount is $250 or the
fixed account value minus indebtedness, if less. The maximum transfer amount is
the fixed account value, minus indebtedness. We may suspend or modify this
transfer privilege at any time with the necessary approval of the Securities and
Exchange Commission and the New York Superintendent of Insurance.
You may also transfer all or part of the value of a subaccount to one or more of
the other subaccounts or to the fixed account by automated transfers. Only one
automated transfer arrangement can be in effect at any time. Policy values may
be transferred to one or more subaccounts and to the fixed account, but can be
transferred from only one account. The minimum automated transfer amount is $50.
Twelve automated transfers per policy year are allowed. Automated transfers from
the fixed account may not exceed an amount that, if continued, would deplete the
fixed account within 12 months.
<PAGE>
Payment of Policy Proceeds
How are the proceeds paid?
We will pay the proceeds in a single sum unless a payment option has been
selected. The date on which the proceeds are paid in a lump sum or first placed
under a payment option is the settlement date. All proceeds are payable at our
home office. We will pay interest at a rate then in effect, on death proceeds
from the date of the last surviving insured's death to the settlement date.
What are the payment options other than a single sum?
During an insured's lifetime, you may request in writing that we pay the
proceeds under one or more of the payment options shown below, or that we change
a prior election. You may elect other payment options not shown if we agree.
Unless we agree otherwise, however, a payment option may be selected only if the
payments are to be made to a natural person in that person's own right. Also,
the amount of proceeds placed under a payment option must be at least $5,000.
Option A - Interest Payments
We will pay interest on proceeds placed under this option at the rate of 3% per
year compounded annually. We will make regular interest payments at intervals
and for a period that is agreeable to both you and us. At the end of any payment
interval, a withdrawal of proceeds may be made in the amount of at least $100.
At any time, all of the proceeds that remain may be withdrawn or placed under a
different payment option approved by us.
Option B - Payments for a Specified Period
We will make monthly payments for a specified number of years. The amount of
each monthly payment for each $1,000 placed under this option is shown in the
table below. Monthly payment amounts for years not shown will be furnished upon
request.
Option B Table
Number of years Monthly Payment/$1000
10 9.61
15 6.87
20 5.51
25 4.71
30 4.18
<PAGE>
Option C - Lifetime Income
We will make monthly payments for the life of the person (the payee) who is to
receive the income. Payment will be guaranteed for either 10, 15, or 20 years.
The amount of each monthly payment for each $1,000 placed under this option will
be based on our Table of Settlement Rates in effect at the time of the first
payment. The amounts will not be less than those shown in the table below for
the sex and Adjusted Age of the payee on the due date of the first payment. (See
Adjusted Age Table.)
Monthly income amounts for any Adjusted Age not shown in the following table
will be furnished upon request.
Option C Table M = Male F = Female
<TABLE>
<CAPTION>
Adjusted Age Life Income per $1,000 with
Payee Payments Guaranteed for
10 years 15 years 20 years
M F M F M F
<S> <C> <C> <C> <C> <C> <C> <C>
50 4.22 3.89 4.17 3.86 4.08 3.82
55 4.62 4.22 4.53 4.18 4.39 4.11
60 5.14 4.66 4.96 4.57 4.71 4.44
65 5.81 5.22 5.46 5.05 5.02 4.79
70 6.61 5.96 5.96 5.60 5.27 5.12
75 7.49 6.89 6.38 6.14 5.42 5.35
</TABLE>
At certain ages, the monthly payment may be the same for the 10, 15, and 20 year
guaranteed periods. In this event, we will guarantee the maximum years possible
for the given monthly payment.
Adjusted Age Table
The Adjusted Age is the age on the payee's nearest birthday, minus an
"adjustment" based on the year of birth of the payee as follows:
<PAGE>
<TABLE>
<CAPTION>
Calendar Year of Payee's Calendar Year of Payee's
Birth Adjustment Birth Adjustment
<S> <C> <C> <C> <C>
Prior to 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
</TABLE>
Will a supplemental contract be prepared if proceeds are placed under a payment
option?
If a payment option is requested, we will prepare an agreement stating the terms
under which payments will be made. The agreement will include statements about
withdrawal value, if any, and to whom remaining proceeds will be paid if the
payee dies.
Can a beneficiary request a payment option?
After the last surviving insured's death but before any proceeds are paid, the
beneficiary may select a payment option by written request to us. You may
provide, however, that the beneficiary will not be permitted to change the
payment option you have selected.
Are excess interest earnings payable by us?
On each anniversary of the settlement date, we will determine excess interest,
if any, on payment option deposits. Any such excess interest will be paid under
Option A or B.
<PAGE>
Four Year Term Insurance Rider
In consideration of the application for this rider and the payment of the cost
of insurance, this rider is made a part of the policy. This rider is subject to
all policy terms and provisions unless this rider changes them. This rider
provides no cash values. However, the monthly deduction for the cost of this
rider will affect the policy value.
What is the definition of insureds?
The persons whose lives are insured by the policy.
What is the amount of insurance?
The amount of insurance provided by this rider as shown under Policy Data.
What benefit does this rider provide?
If we receive proof satisfactory to us that the last surviving insured died
during the first four policy years and while this rider is in force, we will pay
the amount of insurance as shown under Policy Data for this rider to the
beneficiary.
The beneficiary is named in the application for the policy.
Subject to the terms of the policy, the amount of insurance payable by this
rider to the beneficiary may be applied under one of the payment options shown
in the policy.
Is there a monthly deduction for the cost of this rider?
Yes. While this rider is in force, a monthly deduction for the cost of the rider
is taken from the policy's value. The amount of the deduction is this rider's
amount of insurance, as shown under Policy Data, divided by 1,000 times the
monthly cost of insurance rate.
The monthly cost of insurance rate is the annual cost of insurance rate
described below divided by 12.
What is the cost of insurance rate?
The cost of insurance rate is the rate applied to this rider's amount of
insurance to determine the monthly deduction. It is based on each insured's sex,
insurance age, risk classification and the number of years the policy has been
in force.
We may change the cost of insurance rates from time to time. Any change in the
cost of insurance rate will apply to all individuals of the same risk class as
each of the insureds. We will determine cost of insurance rates based on our
expectations as to future mortality
<PAGE>
experience. The cost of insurance rates will not exceed the Guaranteed Maximum
Annual Cost of Insurance Rates shown under Policy Data. These rates are based on
the 1980 Commissioner's Standard Ordinary Smoker or Non-smoker Mortality Tables,
Age Last Birthday.
Can you change the amount of insurance of this rider?
Yes. While this rider is in force you may decrease this rider's amount of
insurance once per policy year by written request. Such request may only be made
after the first policy year and is subject to the following:
The decrease in face amount will be effective on the monthly date on or next
following our receipt of your written request. The amount of insurance that
remains in force after a requested decrease may not be less than $50,000.
Do policy changes affect this rider?
If the policy's specified amount is reduced for any reason, we will reduce this
rider's amount of insurance so that it does not exceed the policy's new
specified amount multiplied by 1.22.
If this rider's amount of insurance is reduced, the monthly deduction for the
cost of this rider will also be reduced.
When will coverage under this rider terminate?
This rider will terminate on the earliest of the following:
1. the monthly date on or next following receipt of your written request
for coverage to end; or
2. the Expiration Date as shown under Policy Data; or
3. the date the policy terminates.
Can this rider be reinstated if the policy has lapsed?
If the policy and this rider lapsed as provided in the policy's grace period
provision, this rider may be reinstated prior to the Expiration Date if:
1. this rider was in effect when the policy lapsed; and
2. the policy is reinstated; and
3. the requirements stated below are met.
<PAGE>
In order to reinstate coverage for this rider, you must:
1. provide evidence that both insureds remain insurable, or evidence for
the last surviving insured and due proof that the first death occurred
before the date of lapse; and
2. pay a premium sufficient to keep this rider in force for 3 months; and
3. pay the monthly deductions that were not collected during the grace
period.
The effective date of reinstatement will be the monthly date on or next
following the date we approve the application for reinstatement.
What if the age or sex of an insured has been misstated?
If an insured's age or sex has been misstated, the amount payable under this
rider upon the last surviving insured's death will be the amount of insurance,
if any, that the rider cost for the policy month during which the last surviving
insured's death occurred, would have purchased had the cost of the benefits
provided under the rider been calculated using the rider cost of insurance rates
for the correct age or sex.
When will this rider become incontestable?
The incontestable provision of the policy also applies to this rider.
Is there a suicide exclusion?
The suicide exclusion provision of the policy also applies to this rider.
What is the effective date of this rider?
The effective date of this rider is the policy date of the policy unless a
different date is shown under Policy Data.
IDS Life Insurance Company of New York
/s/ Donna M. Gaglione
Secretary
<PAGE>
Policy Split Option Rider
This rider was issued in consideration of your application and payment of its
monthly deduction. This rider is made a part of the policy. This rider is
subject to all policy terms and provisions unless this rider changes them. This
rider provides no cash values. However, the monthly deduction for the cost of
this rider will affect the policy's value.
What benefit does this rider provide?
While this rider is in effect, this policy may be exchanged without evidence of
insurability for two individual permanent plans of life insurance we are then
issuing, one on each of the insureds, upon the occurrence of one of the
following:
1. a final divorce decree with respect to the marriage of the insureds is
issued by a court of competent jurisdiction in the United States;
2. the Federal Estate Tax law is changed resulting in removal of the unlimited
marital deduction or reduces by at least 50% the level of the estate taxes
payable on death.
What are the conditions for exchange?
The following conditions must be met in order to make the exchange:
1. Both insureds must be living on the exchange date;
2. You must request the exchange in writing within one year of the first
enactment date of the Federal Estate Tax law change described above, if
applicable;
3. You must request the exchange in writing no sooner than six months after
and no later than one year after the final divorce decree, if applicable.
You must provide us with a copy of the final divorce decree within this
same time period.
4. The owner of each new policy will be the owner of this policy unless
otherwise specified in the applications and must have an insurable interest
in the insured. If this policy is assigned, the assignee must consent to
the exchange;
5. This policy must be in force on the exchange date;
6. We must receive payment of the first premium for each new policy on or
before the Policy Date of each new policy.
When will the new policies become effective?
The new policies will become effective on the date we receive your written
request at our Home Office.
<PAGE>
The New Policy
The initial death benefit of each new policy will be equal to one half of the
death benefit of this policy less one half of any indebtedness on this policy on
the date of the exchange. One half of the policy value of this policy minus one
half of any indebtedness on this policy on the date of the exchange will be
applied as premium to each new policy. Each new policy must be an individual
permanent plan of life insurance we are then issuing. The new policy will be
issued using the rates then in effect, the insured's attained insurance age, and
the same risk classification as this policy.
What if the new policies are canceled under the free-look provision?
If you return either of the new policies under a free-look or right to examine
this policy provision, we will refund for each policy returned an amount equal
to one half of the cash surrender value of this policy plus all additional
premiums paid for the new policy.
Can riders attached to this policy be added to the new policies?
No. Riders attached to this policy will terminate on the effective date of the
split.
Is there a monthly deduction for the cost of this rider?
Yes. While this rider is in force, a monthly deduction for the cost of this
rider is taken from the policy's value. The amount of the monthly deduction is
the annual cost of insurance for this rider, shown under Policy Data, divided by
12.
Do policy changes affect this rider?
If the policy's specified amount is changed for any reason, this rider's monthly
deduction will also be changed.
Is there a suicide exclusion and incontestable period?
Yes. The suicide exclusion and incontestability provision of this policy also
apply to this rider.
When will this rider terminate?
This rider will terminate on the earliest of the following:
1. the monthly date on or next following receipt of your written request for
coverage to end; or
2. the Expiration Date as shown under Policy Data; or
<PAGE>
3. the date the policy terminates.
What is the effective date of this rider?
The effective date of this rider is the policy date of the policy unless a
different date is shown under Policy Data.
IDS Life Insurance Company of New York
Secretary
/s/ Donna M. Gaglione
Flexible Premium Survivorship
Variable Life Insurance Policy
- - Death benefit payable at last surviving insured's death.
- - Cash surrender value payable on youngest insured's attained insurance age 100.
- - Flexible premiums payable as provided herein.
- - Death Benefit Guarantees as described herein.
- - This policy is nonparticipating. Dividends are not payable.
IDS Life Insurance Company of New York
Box 5144
Albany, New York 12205
PARTICIPATION AGREEMENT
BY AND AMONG
AIM VARIABLE INSURANCE FUNDS, INC.,
A I M DISTRIBUTORS, INC.,
IDS LIFE INSURANCE COMPANY OF NEW YORK,
ON BEHALF OF ITSELF AND
ITS SEPARATE ACCOUNTS
AND
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
<PAGE>
TABLE OF CONTENTS
Description Page
Section 1. Available Funds 2
1.1 Availability 2
1.2 Addition, Deletion or Modification of Funds 2
1.3 No Sales to the General Public 2
Section 2. Processing Transactions 2
2.1 Timely Pricing and Orders 2
2.2 Timely Payments 3
2.3 Applicable Price 3
2.4 Dividends and Distributions 4
2.5 Book Entry4
Section 3. Costs and Expenses 4
3.1 General 4
3.2 Registration 4
3.3 Other (Non-Sales-Related) 5
3.4 Other (Sales-Related) 5
3.5 Parties To Cooperate 5
Section 4. Legal Compliance 5
4.1 Tax Laws 5
4.2 Insurance and Certain Other Laws 8
4.3 Securities Laws 8
4.4 Notice of Certain Proceedings and Other Circumstance 9
4.5 IDS Life of New York To Provide Documents;
Information About AVIF 10
4.6 AVIF To Provide Documents; Information About
IDS Life of New York 11
Section 5. Mixed and Shared Funding 12
5.1 General 12
5.2 Disinterested Directors 12
5.3 Monitoring for Material Irreconcilable Conflicts 13
5.4 Conflict Remedies 13
5.5 Notice to IDS Life of New York 15
5.6 Information Requested by Board of Directors 15
5.7 Compliance with SEC Rules 15
5.8 Other Requirements 15
<PAGE>
Description Page
Section 6. Termination 15
6.1 Events of Termination 15
6.2 Notice Requirement for Termination 16
6.3 Funds To Remain Available 17
6.4 Survival of Warranties and Indemnifications 17
6.5 Continuance of Agreement for Certain Purposes 17
Section 7. Parties To Cooperate Respecting Termination 17
Section 8. Assignment 18
Section 9. Notices 18
Section 10. Voting Procedures 19
Section 11. Foreign Tax Credits 19
Section 12. Indemnification 20
12.1 Of AVIF and AIM by IDS Life of New York and AEFA 20
12.2 Of IDS Life of New York and AEFA by AVIF and AIM 22
12.3 Effect of Notice 24
12.4 Successors 24
Section 13. Applicable Law 24
Section 14. Execution in Counterparts 25
Section 15. Severability 25
Section 16. Rights Cumulative 25
Section 17. Headings 25
Section 18. Confidentiality 25
Section 19. Trademarks and Fund Names 26
Section 20. Parties to Cooperate 27
<PAGE>
PARTICIPATION AGREEMENT
THIS AGREEMENT, made and entered into as of the 7th day of October, 1996
("Agreement"), by and among AIM Variable Insurance Funds, Inc., a Maryland
corporation ("AVIF"); AIM Distributors, Inc., a Delaware corporation ("AIM");
IDS Life Insurance Company of New York, a New York life insurance company ("IDS
Life of New York"), on behalf of itself and each of its segregated asset
accounts listed in Schedule A hereto, as the parties hereto may amend from time
to time (each, an "Account," and collectively, the "Accounts"); and American
Express Financial Advisors, Inc. ("AEFA"), an affiliate of IDS Life of New York
and the principal underwriter of the Contracts (collectively, the "Parties").
WITNESSETH THAT:
WHEREAS, AVIF is registered with the Securities and Exchange Commission
("SEC") as an open-end management investment company under the Investment
Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, AVIF currently consists of nine separate series ("Series"),
shares ("Shares") of each of which are registered under the Securities Act of
1933, as amended (the "1933 Act") and are currently sold to one or more separate
accounts of life insurance companies to fund benefits under variable annuity
contracts and variable life insurance contracts; and
WHEREAS, AVIF will make Shares of each Series listed on Schedule A hereto
as the Parties hereto may amend from time to time (each a "Fund"; reference
herein to "AVIF" includes reference to each Fund, to the extent the context
requires) available for purchase by the Accounts; and
WHEREAS, IDS Life of New York will be the issuer of certain variable
annuity contracts and variable life insurance contracts ("Contracts") as set
forth on Schedule A hereto, as the Parties hereto may amend from time to time,
which Contracts (hereinafter collectively, the "Contracts"), if required by
applicable law, will be registered under the 1933 Act; and
WHEREAS, IDS Life of New York will fund the Contracts through the
Accounts, each of which may be divided into two or more subaccounts
("Subaccounts"; reference herein to an "Account" includes reference to each
Subaccount thereof to the extent the context requires); and
WHEREAS, IDS Life of New York will serve as the depositor of the
Accounts, each of which is registered as a unit investment trust investment
company under the 1940 Act (or exempt therefrom), and the security interests
deemed to be issued by the Accounts under the Contracts will be registered as
securities under the 1933 Act (or exempt therefrom); and
<PAGE>
WHEREAS, to the extent permitted by applicable insurance laws and
regulations, IDS Life of New York intends to purchase Shares in one or more of
the Funds on behalf of the Accounts to fund the Contracts; and
WHEREAS, AEFA is a broker-dealer registered with the SEC under the
Securities Exchange Act of 1934 ("1934 Act") and a member in good standing of
the National Association of Securities Dealers, Inc.
("NASD");
NOW, THEREFORE, in consideration of the mutual benefits and promises
contained herein, the Parties hereto agree as follows:
Section 1. Available Funds
1.1 Availability.
AVIF will make Shares of each Fund available to IDS Life of New York for
purchase and redemption at net asset value and with no sales charges, subject to
the terms and conditions of this Agreement. The Board of Directors of AVIF may
refuse to sell Shares of any Fund to any person, or suspend or terminate the
offering of Shares of any Fund if such action is required by law or by
regulatory authorities having jurisdiction or if, in the sole discretion of the
Directors acting in good faith and in light of their fiduciary duties under
federal and any applicable state laws, such action is deemed in the best
interests of the shareholders of such Fund.
1.2 Addition, Deletion or Modification of Funds.
The Parties hereto may agree, from time to time, to add other Funds to
provide additional funding media for the Contracts, or to delete, combine, or
modify existing Funds, by amending Schedule A hereto. Upon such amendment to
Schedule A, any applicable reference to a Fund, AVIF, or its Shares herein shall
include a reference to any such additional Fund. Schedule A, as amended from
time to time, is incorporated herein by reference and is a part hereof.
1.3 No Sales to the General Public.
AVIF represents and warrants that no Shares of any Fund have been or will
be sold to the general public.
<PAGE>
Section 2. Processing Transactions
2.1 Timely Pricing and Orders.
(a) AVIF or its designated agent will use its best efforts to provide IDS
Life of New York with the net asset value per Share for each Fund by 5:30 p.m.
Central Time on each Business Day. As used herein, "Business Day" shall mean any
day on which (i) the New York Stock Exchange is open for regular trading, (ii)
AVIF calculates the Fund's net asset value, and (iii) IDS Life of New York is
open for business.
(b) IDS Life of New York will use the data provided by AVIF each Business
Day pursuant to paragraph (a) immediately above to calculate Account unit values
and to process transactions that receive that same Business Day's Account unit
values. IDS Life of New York will perform such Account processing the same
Business Day, and will place corresponding orders to purchase or redeem Shares
with AVIF by 9:00 a.m. Central Time the following Business Day; provided,
however, that AVIF shall provide additional time to IDS Life of New York in the
event that AVIF is unable to meet the 5:30 p.m. time stated in paragraph (a)
immediately above. Such additional time shall be equal to the additional time
that AVIF takes to make the net asset values available to IDS Life of New York.
(c) With respect to payment of the purchase price by IDS Life of New York
and of redemption proceeds by AVIF, IDS Life of New York and AVIF shall net
purchase and redemption orders with respect to each Fund and shall transmit one
net payment per Fund in accordance with Section 2.2, below.
(d) If AVIF provides materially incorrect Share net asset value
information (as determined under SEC guidelines), IDS Life of New York shall be
entitled to an adjustment to the number of Shares purchased or redeemed to
reflect the correct net asset value per Share. Any material error in the
calculation or reporting of net asset value per Share, dividend or capital gain
information shall be reported promptly upon discovery to IDS Life of New York.
2.2 Timely Payments.
IDS Life of New York will wire payment for net purchases to a custodial
account designated by AVIF by 1:00 p.m. Central Time on the same day as the
order for Shares is placed, to the extent practicable. AVIF will wire payment
for net redemptions to an account designated by IDS Life of New York by 1:00
p.m. Central Time on the same day as the Order is placed, to the extent
practicable, but in any event within five (5) calendar days after the date the
order is placed in order to enable IDS Life of New York to pay redemption
proceeds within the time specified in Section 22(e) of the 1940 Act or such
shorter period of time as may be required by law.
<PAGE>
2.3 Applicable Price.
(a) Share purchase payments and redemption orders that result from
purchase payments, premium payments, surrenders and other transactions under
Contracts (collectively, "Contract transactions") and that IDS Life of New York
receives prior to the close of regular trading on the New York Stock Exchange on
a Business Day will be executed at the net asset values of the appropriate Funds
next computed after receipt by AVIF or its designated agent of the orders. For
purposes of this Section 2.3(a), IDS Life of New York shall be the designated
agent of AVIF for receipt of orders relating to Contract transactions on each
Business Day and receipt by such designated agent shall constitute receipt by
AVIF; provided that AVIF receives notice of such orders by 9:00 a.m. Central
Time on the next following Business Day or such later time as computed in
accordance with Section 2.1(b) hereof.
(b) All other Share purchases and redemptions by IDS Life of New York
will be effected at the net asset values of the appropriate Funds next computed
after receipt by AVIF or its designated agent of the order therefor, and such
orders will be irrevocable.
2.4 Dividends and Distributions.
AVIF will furnish notice by wire or telephone (followed by written
confirmation) on or prior to the payment date to IDS Life of New York of any
income dividends or capital gain distributions payable on the Shares of any
Fund. IDS Life of New York hereby elects to reinvest all dividends and capital
gains distributions in additional Shares of the corresponding Fund at the
ex-dividend date net asset values until IDS Life of New York otherwise notifies
AVIF in writing, it being agreed by the Parties that the ex-dividend date and
the payment date with respect to any dividend or distribution will be the same
Business Day. IDS Life of New York reserves the right to revoke this election
and to receive all such income dividends and capital gain distributions in cash.
2.5 Book Entry.
Issuance and transfer of AVIF Shares will be by book entry only. Stock
certificates will not be issued to IDS Life of New York. Shares ordered from
AVIF will be recorded in an appropriate title for IDS Life of New York, on
behalf of its Account.
<PAGE>
Section 3. Costs and Expenses
3.1 General.
Except as otherwise specifically provided herein, each Party will bear
all expenses incident to its performance under this Agreement.
3.2 Registration.
(a) AVIF will bear the cost of its registering as a management investment
company under the 1940 Act and registering its Shares under the 1933 Act, and
keeping such registrations current and effective; including, without limitation,
the preparation of and filing with the SEC of Forms N-SAR and Rule 24f-2 Notices
with respect to AVIF and its Shares and payment of all applicable registration
or filing fees with respect to any of the foregoing.
(b) IDS Life of New York will bear the cost of registering, to the extent
required, each Account as a unit investment trust under the 1940 Act and
registering units of interest under the Contracts under the 1933 Act and keeping
such registrations current and effective; including, without limitation, the
preparation and filing with the SEC of Forms N-SAR and Rule 24f-2 Notices with
respect to each Account and its units of interest and payment of all applicable
registration or filing fees with respect to any of the foregoing.
3.3 Other (Non-Sales-Related).
(a) AVIF will bear, or arrange for others to bear, the costs of
preparing, filing with the SEC and setting for printing AVIF's prospectus,
statement of additional information and any amendments or supplements thereto
(collectively, the "AVIF Prospectus"), periodic reports to shareholders, AVIF
proxy material and other shareholder communications.
(b) IDS Life of New York will bear the costs of preparing, filing with
the SEC and setting for printing each Account's prospectus, statement of
additional information and any amendments or supplements thereto (collectively,
the "Account Prospectus"), any periodic reports to Contract owners, annuitants,
insureds or participants (as appropriate) under the Contracts (collectively,
"Participants"), voting instruction solicitation material, and other Participant
communications.
(c) IDS Life of New York will print in quantity and deliver to existing
Participants the documents described in Section 3.3(b) above and the prospectus
provided by AVIF in camera ready or computer diskette form. AVIF will print the
AVIF statement of additional information, proxy materials relating to AVIF and
periodic reports of AVIF.
<PAGE>
3.4 Other (Sales-Related).
IDS Life of New York will bear the expenses of distribution. These
expenses would include by way of illustration, but are not limited to, the costs
of distributing to Participants the following documents, whether they relate to
the Account or AVIF: prospectuses, statements of additional information, proxy
materials and periodic reports. These costs would also include the costs of
preparing, printing, and distributing sales literature and advertising relating
to the Funds, as well as filing such materials with, and obtaining approval
from, the SEC, NASD, any state insurance regulatory authority, and any other
appropriate regulatory authority, to the extent required.
3.5 Parties To Cooperate.
Each Party agrees to cooperate with the others, as applicable, in
arranging to print, mail and/or deliver, in a timely manner, combined or
coordinated prospectuses or other materials of AVIF and the Accounts.
Section 4. Legal Compliance
4.1 Tax Laws.
(a) AVIF represents and warrants that each Fund is currently qualified as
a regulated investment company ("RIC") under Subchapter M of the Internal
Revenue Code of 1986, as amended (the "Code"), and represents that it will use
its best efforts to qualify and to maintain qualification of each Fund as a RIC.
AVIF will notify IDS Life of New York immediately upon having a reasonable basis
for believing that a Fund has ceased to so qualify or that it might not so
qualify in the future.
(b) AVIF represents that it will use its best efforts to comply and to
maintain each Fund's compliance with the diversification requirements set forth
in Section 817(h) of the Code and Section 1.817-5(b) of the regulations under
the Code. AVIF will notify IDS Life of New York immediately upon having a
reasonable basis for believing that a Fund has ceased to so comply or that a
Fund might not so comply in the future. In the event of a breach of this Section
4.1(b) by AVIF, it will take all reasonable steps to adequately diversify the
Fund so as to achieve compliance within the grace period afforded by Section
1.817-5 of the regulations under the Code.
(c) IDS Life of New York agrees that if the Internal Revenue Service
("IRS") asserts in writing in connection with any governmental audit or review
of IDS Life of New York or, to IDS Life of New York's knowledge, of an
Participant, that any Fund has failed to comply with the diversification
requirements of Section 817(h) of the Code or IDS Life of New York otherwise
becomes aware of any facts that could give rise to any claim against AVIF or its
affiliates as a result of such a failure or alleged failure:
<PAGE>
(i) IDS Life of New York shall promptly notify AVIF of such assertion
or potential claim (subject to the Confidentiality provisions of
Section 18 as to any Participant);
(ii) IDS Life of New York shall consult with AVIF as to how to
minimize any liability that may arise as a result of such failure
or alleged failure;
(iii)IDS Life of New York shall use its best efforts to minimize any
liability of AVIF or its affiliates resulting from such failure,
including, without limitation, demonstrating, pursuant to
Treasury Regulations Section 1.817-5(a)(2), to the Commissioner
of the IRS that such failure was inadvertent;
(iv) IDS Life of New York shall permit AVIF, its affiliates and their
legal and accounting advisors to participate in any conferences,
settlement discussions or other administrative or judicial
proceeding or contests (including judicial appeals thereof) with
the IRS, any Participant or any other claimant regarding any
claims that could give rise to liability to AVIF or its
affiliates as a result of such a failure or alleged failure;
provided, however, that IDS Life of New York will retain control
of the conduct of such conferences discussions, proceedings,
contests or appeals;
(v) any written materials to be submitted by IDS Life of New York to
the IRS, any Participant or any other claimant in connection with
any of the foregoing proceedings or contests (including, without
limitation, any such materials to be submitted to the IRS
pursuant to Treasury Regulations Section 1.8175(a)(2)), (a) shall
be provided by IDS Life of New York to AVIF (together with any
supporting information or analysis); subject to the
confidentiality provisions of Section 18, at least ten (10)
business days or such shorter period to which the Parties hereto
agree prior to the day on which such proposed materials are to be
submitted, and (b) shall not be submitted by IDS Life of New York
to any such person without the express written consent of AVIF
which shall not be unreasonably withheld;
<PAGE>
(vi) IDS Life of New York shall provide AVIF or its affiliates and
their accounting and legal advisors with such cooperation as AVIF
shall reasonably request (including, without limitation, by
permitting AVIF and its accounting and legal advisors to review
the relevant books and records of IDS Life of New York) in order
to facilitate review by AVIF or its advisors of any written
submissions provided to it pursuant to the preceding clause or
its assessment of the validity or amount of any claim against its
arising from such a failure or alleged failure;
(vii)IDS Life of New York shall not with respect to any claim of the
IRS or any Participant that would give rise to a claim against
AVIF or its affiliates (a) compromise or settle any claim, (b)
accept any adjustment on audit, or (c) forego any allowable
administrative or judicial appeals, without the express written
consent of AVIF or its affiliates, which shall not be
unreasonably withheld, provided that IDS Life of New York shall
not be required, after exhausting all administrative penalties,
to appeal any adverse judicial decision unless AVIF or its
affiliates shall have provided an opinion of independent counsel
to the effect that a reasonable basis exists for taking such
appeal; and provided further that the costs of any such appeal
shall be borne equally by the Parties hereto; and
(viii) AVIF and its affiliates shall have no liability as a result of
such failure or alleged failure if IDS Life of New York fails to
comply with any of the foregoing clauses (i) through (vii), and
such failure could be shown to have materially contributed to the
liability.
Should AVIF or any of its affiliates refuse to give its written consent
to any compromise or settlement of any claim or liability hereunder, IDS Life of
New York may, in its discretion, authorize AVIF or its affiliates to act in the
name of IDS Life of New York in, and to control the conduct of, such
conferences, discussions, proceedings, contests or appeals and all
administrative or judicial appeals thereof, and in that event AVIF or its
affiliates shall bear the fees and expenses associated with the conduct of the
proceedings that it is so authorized to control; provided, that in no event
shall IDS Life of New York have any liability resulting from AVIF's refusal to
accept the proposed settlement or compromise with respect to any failure caused
by AVIF. As used in this Agreement, the term "affiliates" shall have the same
meaning as "affiliated person" as defined in Section 2(a)(3) of the 1940 Act.
<PAGE>
(d) IDS Life of New York represents and warrants that the Contracts
currently are and will be treated as annuity contracts or life insurance
contracts under applicable provisions of the Code and that it will use its best
efforts to maintain such treatment; IDS Life of New York will notify AVIF
immediately upon having a reasonable basis for believing that any of the
Contracts have ceased to be so treated or that they might not be so treated in
the future.
(e) IDS Life of New York represents and warrants that each Account is a
"segregated asset account" and that interests in each Account are offered
exclusively through the purchase of or transfer into a "variable contract,"
within the meaning of such terms under Section 817 of the Code and the
regulations thereunder. IDS Life of New York will use its best efforts to
continue to meet such definitional requirements, and it will notify AVIF
immediately upon having a reasonable basis for believing that such requirements
have ceased to be met or that they might not be met in the future.
4.2 Insurance and Certain Other Laws.
(a) AVIF will use its best efforts to comply with any applicable state
insurance laws or regulations, to the extent specifically requested in writing
by IDS Life of New York, including, the furnishing of information not otherwise
available to IDS Life of New York which is required by state insurance law to
enable IDS Life of New York to obtain the authority needed to issue the
Contracts in any applicable state.
(b) IDS Life of New York represents and warrants that (i) it is an
insurance company duly organized, validly existing and in good standing under
the laws of the State of New York and has full corporate power, authority and
legal right to execute, deliver and perform its duties and comply with its
obligations under this Agreement, (ii) it has legally and validly established
and maintains each Account as a segregated asset account under Section 4240 of
the New York Insurance Law and the regulations thereunder, and (iii) the
Contracts comply in all material respects with all other applicable federal and
state laws and regulations.
(c) AVIF represents and warrants that it is a corporation duly organized,
validly existing, and in good standing under the laws of the State of Maryland
and has full power, authority, and legal right to execute, deliver, and perform
its duties and comply with its obligations under this Agreement.
<PAGE>
4.3 Securities Laws.
(a) IDS Life of New York represents and warrants that (i) interests in
each Account pursuant to the Contracts will be registered under the 1933 Act to
the extent required by the 1933 Act, (ii) the Contracts will be duly authorized
for issuance and sold in compliance with all applicable federal and state laws,
including, without limitation, the 1933 Act, the 1934 Act, the 1940 Act and New
York law, (iii) each Account is and will remain registered under the 1940 Act,
to the extent required by the 1940 Act, (iv) each Account does and will comply
in all material respects with the requirements of the 1940 Act and the rules
thereunder, to the extent required, (v) each Account's 1933 Act registration
statement relating to the Contracts, together with any amendments thereto, will
at all times comply in all material respects with the requirements of the 1933
Act and the rules thereunder, (vi) IDS Life of New York will amend the
registration statement for its Contracts under the 1933 Act and for its Accounts
under the 1940 Act from time to time as required in order to effect the
continuous offering of its Contracts or as may otherwise be required by
applicable law, and (vii) each Account Prospectus will at all times comply in
all material respects with the requirements of the 1933 Act and the rules
thereunder.
(b) AVIF represents and warrants that (i) Shares sold pursuant to this
Agreement will be registered under the 1933 Act to the extent required by the
1933 Act and duly authorized for issuance and sold in compliance with Maryland
law, (ii) AVIF is and will remain registered under the 1940 Act to the extent
required by the 1940 Act, (iii) AVIF will amend the registration statement for
its Shares under the 1933 Act and itself under the 1940 Act from time to time as
required in order to effect the continuous offering of its Shares, (iv) AVIF
does and will comply in all material respects with the requirements of the 1940
Act and the rules thereunder, (v) AVIF's 1933 Act registration statement,
together with any amendments thereto, will at all times comply in all material
respects with the requirements of the 1933 Act and rules thereunder, and (vi)
AVIF's Prospectus will at all times comply in all material respects with the
requirements of the 1933 Act and the rules thereunder.
(c) AVIF will at its expense register and qualify its Shares for sale in
accordance with the laws of any state or other jurisdiction if and to the extent
reasonably deemed advisable by AVIF.
(d) AVIF currently does not intend to make any payments to finance
distribution expenses pursuant to Rule 12b-1 under the 1940 Act or otherwise,
although it reserves the right to make such payments in the future. To the
extent that it decides to finance distribution expenses pursuant to Rule 12b-1,
AVIF undertakes to have its Board of Directors, a majority of whom are not
"interested" persons of the Fund, formulate and approve any plan under Rule
12b-1 to finance distribution expenses.
<PAGE>
(e) AVIF represents and warrants that all of its trustees, officers,
employees, investment advisers, and other individuals/entities having access to
the funds and/or securities of the Fund are and continue to be at all times
covered by a blanket fidelity bond or similar coverage for the benefit of the
Fund in an amount not less than the minimal coverage as required currently by
Rule 17g-(1) of the 1940 Act or related provisions as maybe promulgated from
time to time. The aforesaid bond includes coverage for larceny and embezzlement
and is issued by a reputable bonding company.
4.4 Notice of Certain Proceedings and Other Circumstances.
(a) AVIF will immediately notify IDS Life of New York of (i) the issuance
by any court or regulatory body of any stop order, cease and desist order, or
other similar order with respect to AVIF's registration statement under the 1933
Act or AVIF Prospectus, (ii) any request by the SEC for any amendment to such
registration statement or AVIF Prospectus that may affect the offering of Shares
of AVIF, (iii) the initiation of any proceedings for that purpose or for any
other purpose relating to the registration or offering of AVIF's Shares, or (iv)
any other action or circumstances that may prevent the lawful offer or sale of
Shares of any Fund in any state or jurisdiction, including, without limitation,
any circumstances in which (a) such Shares are not registered and, in all
material respects, issued and sold in accordance with applicable state and
federal law, or (b) such law precludes the use of such Shares as an underlying
investment medium of the Contracts issued or to be issued by IDS Life of New
York. AVIF will make every reasonable effort to prevent the issuance, with
respect to any Fund, of any such stop order, cease and desist order or similar
order and, if any such order is issued, to obtain the lifting thereof at the
earliest possible time.
(b) IDS Life of New York will immediately notify AVIF of (i) the issuance
by any court or regulatory body of any stop order, cease and desist order, or
other similar order with respect to each Account's registration statement under
the 1933 Act relating to the Contracts or each Account Prospectus, (ii) any
request by the SEC for any amendment to such registration statement or Account
Prospectus that may affect the offering of Shares of AVIF, (iii) the initiation
of any proceedings for that purpose or for any other purpose relating to the
registration or offering of each Account's interests pursuant to the Contracts,
or (iv) any other action or circumstances that may prevent the lawful offer or
sale of said interests in any state or jurisdiction, including, without
limitation, any circumstances in which said interests are not registered and, in
all material respects, issued and sold in accordance with applicable state and
federal law. IDS Life of New York will make every reasonable effort to prevent
the issuance of any such stop order, cease and desist order or similar order
and, if any such order is issued, to obtain the lifting thereof at the earliest
possible time.
<PAGE>
4.5 IDS Life of New York To Provide Documents; Information
About AVIF.
(a) IDS Life of New York will provide to AVIF or its designated agent at
least one (1) complete copy of all SEC registration statements, Account
Prospectuses, reports, any preliminary and final voting instruction solicitation
material, applications for exemptions, requests for no-action letters, and all
amendments to any of the above, that relate to each Account or the Contracts,
contemporaneously with the filing of such document with the SEC or other
regulatory authorities.
(b) IDS Life of New York will provide to AVIF or its designated agent at
least one (1) complete copy of each piece of sales literature or other
promotional material in which AVIF or any of its affiliates is named, at least
five (5) Business Days prior to its use or such shorter period as the Parties
hereto may, from time to time, agree upon. No such material shall be used if
AVIF or its designated agent objects to such use within five (5) Business Days
after receipt of such material or such shorter period as the Parties hereto may,
from time to time, agree upon. AVIF hereby designates A I M as the entity to
receive such sales literature, until such time as AVIF appoints another
designated agent by giving notice to IDS Life of New York in the manner required
by Section 9 hereof.
(c) Neither IDS Life of New York nor any of its affiliates, will give any
information or make any representations or statements on behalf of or concerning
AVIF or its affiliates in connection with the sale of the Contracts other than
(i) the information or representations contained in the registration statement,
including the AVIF Prospectus contained therein, relating to Shares, as such
registration statement and AVIF Prospectus may be amended from time to time; or
(ii) in reports or proxy materials for AVIF; or (iii) in published reports for
AVIF that are in the public domain and approved by AVIF for distribution; or
(iv) in sales literature or other promotional material approved by AVIF, except
with the express written permission of AVIF.
(d) IDS Life of New York shall adopt and implement procedures reasonably
designed to ensure that information concerning AVIF and its affiliates that is
intended for use only by brokers or agents selling the Contracts (i.e.,
information that is not intended for distribution to Participants) ("broker only
materials") is so used, and neither AVIF nor any of its affiliates shall be
liable for any losses, damages or expenses relating to the improper use of such
broker only materials.
(e) For the purposes of this Section 4.5, the phrase "sales literature or
other promotional material" includes, but is not limited to, advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media, (e.g.,
on-line networks such as the Internet or other electronic messages), sales
literature (i.e., any written communication distributed or made generally
available to customers or the public,
<PAGE>
including brochures, circulars, research reports, market letters, form letters,
seminar texts, reprints or excerpts of any other advertisement, sales
literature, or published article), educational or training materials or other
communications distributed or made generally available to some or all agents or
employees, registration statements, prospectuses, statements of additional
information, shareholder reports, and proxy materials and any other material
constituting sales literature or advertising under the NASD rules, the 1933 Act
or the 1940 Act.
4.6 AVIF To Provide Documents; Information About IDS Life of
New York.
(a) AVIF will provide to IDS Life of New York at least one (1) complete copy of
all SEC registration statements, AVIF Prospectuses, reports, any preliminary and
final proxy material, applications for exemptions, requests for no-action
letters, and all amendments to any of the above, that relate to AVIF or the
Shares of a Fund, contemporaneously with the filing of such document with the
SEC or other regulatory authorities.
(b) AVIF will provide to IDS Life of New York camera ready or computer
diskette copies of all AVIF prospectuses and printed copies, in an amount
specified by IDS Life of New York, of AVIF statements of additional information,
proxy materials, periodic reports to shareholders and other materials required
by law to be sent to Participants who have allocated any Contract value to a
Fund. AVIF will provide such copies to IDS Life of New York in a timely manner
so as to enable IDS Life of New York, as the case may be, to print and
distribute such materials within the time required by law to be furnished to
Participants.
(c) AVIF will provide to IDS Life of New York or its designated agent at
least one (1) complete copy of each piece of sales literature or other
promotional material in which IDS Life of New York, or any of its respective
affiliates is named, or that refers to the Contracts, at least five (5) Business
Days prior to its use or such shorter period as the Parties hereto may, from
time to time, agree upon. No such material shall be used if IDS Life of New York
or its designated agent objects to such use within five (5) Business Days after
receipt of such material or such shorter period as the Parties hereto may, from
time to time, agree upon. IDS Life of New York shall receive all such sales
literature until such time as it appoints a designated agent by giving notice to
AVIF in the manner required by Section 9 hereof.
(d) Neither AVIF nor any of its affiliates will give any information or
make any representations or statements on behalf of or concerning IDS Life of
New York, each Account, or the Contracts other than (i) the information or
representations contained in the registration statement, including each Account
Prospectus contained therein, relating to the Contracts, as such registration
statement and Account Prospectus may be amended from time to time; or (ii) in
published reports for the Account or the Contracts that are in the public domain
and approved by IDS Life of New York for
<PAGE>
distribution; or (iii) in sales literature or other promotional material
approved by IDS Life of New York or its affiliates, except with the express
written permission of IDS Life of New York.
e) AVIF shall cause its principal underwriter to adopt and implement
procedures reasonably designed to ensure that information concerning IDS Life of
New York, and its respective affiliates that is intended for use only by brokers
or agents selling the Contracts (i.e., information that is not intended for
distribution to Participants) ("broker only materials") is so used, and neither
IDS Life of New York, nor any of its respective affiliates shall be liable for
any losses, damages or expenses relating to the improper use of such broker only
materials.
(f) For purposes of this Section 4.6, the phrase "sales literature or
other promotional material" includes, but is not limited to, advertisements
(such as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media, (e.g.,
on-line networks such as the Internet or other electronic messages), sales
literature (i.e., any written communication distributed or made generally
available to customers or the public, including brochures, circulars, research
reports, market letters, form letters, seminar texts, reprints or excerpts of
any other advertisement, sales literature, or published article), educational or
training materials or other communications distributed or made generally
available to some or all agents or employees, registration statements,
prospectuses, statements of additional information, shareholder reports, and
proxy materials and any other material constituting sales literature or
advertising under the NASD rules, the 1933 Act or the 1940 Act.
Section 5. Mixed and Shared Funding
5.1 General.
The SEC has granted an order to AVIF exempting it from certain provisions
of the 1940 Act and rules thereunder so that AVIF may be available for
investment by certain other entities, including, without limitation, separate
accounts funding variable annuity contracts or variable life insurance
contracts, separate accounts of insurance companies unaffiliated with IDS Life
of New York, and trustees of qualified pension and retirement plans
(collectively, "Mixed and Shared Funding"). The Parties recognize that the SEC
has imposed terms and conditions for such orders that are substantially
identical to many of the provisions of this Section 5. Sections 5.2 through 5.8
below shall apply pursuant to such an exemptive order granted to AVIF. AVIF
hereby notifies IDS Life of New York that, in the event that AVIF implements
Mixed and Shared Funding, it may be appropriate to include in the prospectus
pursuant to which a Contract is offered disclosure regarding the potential risks
of Mixed and Shared Funding.
<PAGE>
5.2 Disinterested Directors.
AVIF agrees that its Board of Directors shall at all times consist of
directors a majority of whom (the "Disinterested Directors") are not interested
persons of AVIF within the meaning of Section 2(a)(19) of the 1940 Act and the
Rules thereunder and as modified by any applicable orders of the SEC, except
that if this condition is not met by reason of the death, disqualification, or
bona fide resignation of any director, then the operation of this condition
shall be suspended (a) for a period of forty-five (45) days if the vacancy or
vacancies may be filled by the Board; (b) for a period of sixty (60) days if a
vote of shareholders is required to fill the vacancy or vacancies; or (c) for
such longer period as the SEC may prescribe by order upon application.
5.3 Monitoring for Material Irreconcilable Conflicts.
AVIF agrees that its Board of Directors will monitor for the existence of
any material irreconcilable conflict between the interests of the Participants
in all separate accounts of life insurance companies utilizing AVIF
("Participating Insurance Companies"), including each Account, and participants
in all qualified retirement and pension plans investing in AVIF ("Participating
Plans"). IDS Life of New York agrees to inform the Board of Directors of AVIF of
the existence of or any potential for any such material irreconcilable conflict
of which it is aware. The concept of a "material irreconcilable conflict" is not
defined by the 1940 Act or the rules thereunder, but the Parties recognize that
such a conflict may arise for a variety of reasons, including, without
limitation:
(a) an action by any state insurance or other regulatory authority;
(b) a change in applicable federal or state insurance, tax or securities
laws or regulations, or a public ruling, private letter ruling, no-action or
interpretative letter, or any similar action by insurance, tax or securities
regulatory authorities;
(c) an administrative or judicial decision in any relevant proceeding;
(d) the manner in which the investments of any Fund are being managed;
(e) a difference in voting instructions given by variable annuity
contract and variable life insurance contract Participants or by Participants of
different Participating Insurance Companies;
(f) a decision by a Participating Insurance Company to disregard the voting
instructions of Participants; or
(g) a decision by a Participating Plan to disregard the voting instructions
of Plan participants.
<PAGE>
Consistent with the SEC's requirements in connection with exemptive
orders of the type referred to in Section 5.1 hereof, IDS Life of New York will
assist the Board of Directors in carrying out its responsibilities by providing
the Board of Directors with all information reasonably necessary for the Board
of Directors to consider any issue raised, including information as to a
decision by IDS Life of New York to disregard voting instructions of
Participants.
5.4 Conflict Remedies.
(a) It is agreed that if it is determined by a majority of the members of
the Board of Directors or a majority of the Disinterested Directors that a
material irreconcilable conflict exists, IDS Life of New York will, if it is a
Participating Insurance Company for which a material irreconcilable conflict is
relevant, at its own expense and to the extent reasonably practicable (as
determined by a majority of the Disinterested Directors), take whatever steps
are necessary to remedy or eliminate the material irreconcilable conflict, which
steps may include, but are not limited to:
(i) withdrawing the assets allocable to some or all of the Accounts
from AVIF or any Fund and reinvesting such assets in a different
investment medium, including another Fund of AVIF, or submitting
the question whether such segregation should be implemented to a
vote of all affected Participants and, as appropriate,
segregating the assets of any particular group (e.g., annuity
Participants, life insurance Participants or all Participants)
that votes in favor of such segregation, or offering to the
affected Participants the option of making such a change; and
(ii) establishing a new registered investment company of
the type defined as a "management company" in Section
4(3) of the 1940 Act or a new separate account that
is operated as a management company.
(b) If the material irreconcilable conflict arises because of IDS Life of
New York's decision to disregard Participant voting instructions and that
decision represents a minority position or would preclude a majority vote, IDS
Life of New York may be required, at AVIF's election, to withdraw each Account's
investment in AVIF or any Fund. No charge or penalty will be imposed as a result
of such withdrawal. Any such withdrawal must take place within six (6) months
after AVIF gives notice to IDS Life of New York that this provision is being
implemented, and until such withdrawal AVIF shall continue to accept and
implement orders by IDS Life of New York for the purchase and redemption of
Shares of AVIF.
(c) If a material irreconcilable conflict arises because a particular
state insurance regulator's decision applicable to IDS Life of New York
conflicts with the majority of other state
<PAGE>
regulators, then IDS Life of New York will withdraw each Account's investment in
AVIF within six (6) months after AVIF's Board of Directors informs IDS Life of
New York that it has determined that such decision has created a material
irreconcilable conflict, and until such withdrawal AVIF shall continue to accept
and implement orders by IDS Life of New York for the purchase and redemption of
Shares of AVIF. No charge or penalty will be imposed as a result of such
withdrawal.
(d) IDS Life of New York agrees that any remedial action taken by it in
resolving any material irreconcilable conflict will be carried out at its
expense and with a view only to the interests of Participants.
(e) For purposes hereof, a majority of the Disinterested Directors will
determine whether or not any proposed action adequately remedies any material
irreconcilable conflict. In no event, however, will AVIF or any of its
affiliates be required to establish a new funding medium for any Contracts. IDS
Life of New York will not be required by the terms hereof to establish a new
funding medium for any Contracts if an offer to do so has been declined by vote
of a majority of Participants materially adversely affected by the material
irreconcilable conflict.
5.5 Notice to IDS Life of New York.
AVIF will promptly make known in writing to IDS Life of New York the
Board of Directors' determination of the existence of a material irreconcilable
conflict, a description of the facts that give rise to such conflict and the
implications of such conflict.
5.6 Information Requested by Board of Directors.
IDS Life of New York and AVIF (or its investment adviser) will at least
annually submit to the Board of Directors of AVIF such reports, materials or
data as the Board of Directors may reasonably request so that the Board of
Directors may fully carry out the obligations imposed upon it by the provisions
hereof or any exemptive order granted by the SEC to permit Mixed and Shared
Funding, and said reports, materials and data will be submitted at any
reasonable time deemed appropriate by the Board of Directors. All reports
received by the Board of Directors of potential or existing conflicts, and all
Board of Directors actions with regard to determining the existence of a
conflict, notifying Participating Insurance Companies and Participating Plans of
a conflict, and determining whether any proposed action adequately remedies a
conflict, will be properly recorded in the minutes of the Board of Directors or
other appropriate records, and such minutes or other records will be made
available to the SEC upon request.
<PAGE>
5.7 Compliance with SEC Rules.
If, at any time during which AVIF is serving as an investment medium for
variable life insurance Contracts, 1940 Act Rules 6e-3(T) or, if applicable,
6e-2 are amended or Rule 6e-3 is adopted to provide exemptive relief with
respect to Mixed and Shared Funding, AVIF agrees that it will comply with the
terms and conditions thereof and that the terms of this Section 5 shall be
deemed modified if and only to the extent required in order also to comply with
the terms and conditions of such exemptive relief that is afforded by any of
said rules that are applicable.
5.8 Other Requirements.
AVIF will require that each Participating Insurance Company and
Participating Plan enter into an agreement with AVIF that contains in substance
the same provisions as are set forth in Sections 4.1(b), 4.1(d), 4.3(a), 4.4(b),
4.5(a), 5, and 10 of this Agreement.
Section 6. Termination
6.1 Events of Termination.
Subject to Section 6.4 below, this Agreement will terminate as to a Fund:
(a) at the option of any party, with or without cause with respect to the
Fund, upon six (6) months advance written notice to the other parties, or, if
later, upon receipt of any required exemptive relief from the SEC, unless
otherwise agreed to in writing by the parties; or
(b) at the option of AVIF upon institution of formal proceedings against
IDS Life of New York or its affiliates by the NASD, the SEC, any state insurance
regulator or any other regulatory body regarding IDS Life of New York's
obligations under this Agreement or related to the sale of the Contracts, the
operation of each Account, or the purchase of Shares, if, in each case, AVIF
reasonably determines that such proceedings, or the facts on which such
proceedings would be based, have a material likelihood of imposing material
adverse consequences on the Fund with respect to which the Agreement is to be
terminated; or
<PAGE>
(c) at the option of IDS Life of New York upon institution of formal
proceedings against AVIF, its principal underwriter, or its investment adviser
by the NASD, the SEC, or any state insurance regulator or any other regulatory
body regarding AVIF's obligations under this Agreement or related to the
operation or management of AVIF or the purchase of AVIF Shares, if, in each
case, IDS Life of New York reasonably determines that such proceedings, or the
facts on which such proceedings would be based, have a material likelihood of
imposing material adverse consequences on IDS Life of New York, or the
Subaccount corresponding to the Fund with respect to which the Agreement is to
be terminated; or
(d) at the option of any Party in the event that (i) the Fund's Shares
are not registered and, in all material respects, issued and sold in accordance
with any applicable federal or state law, or (ii) such law precludes the use of
such Shares as an underlying investment medium of the Contracts issued or to be
issued by IDS Life of New York; or
(e) upon termination of the corresponding Subaccount's investment in the
Fund pursuant to Section 5 hereof; or
(f) at the option of IDS Life of New York if the Fund ceases to qualify
as a RIC under Subchapter M of the Code or under successor or similar
provisions, or if IDS Life of New York reasonably believes that the Fund may
fail to so qualify; or
(g) at the option of IDS Life of New York if the Fund fails to comply
with Section 817(h) of the Code or with successor or similar provisions, or if
IDS Life of New York reasonably believes that the Fund may fail to so comply; or
(h) at the option of AVIF if the Contracts issued by IDS Life of New York
cease to qualify as annuity contracts or life insurance contracts under the Code
(other than by reason of the Fund's noncompliance with Section 817(h) or
Subchapter M of the Code) or if interests in an Account under the Contracts are
not registered, where required, and, in all material respects, are not issued or
sold in accordance with any applicable federal or state law; or
(i) upon another Party's material breach of any provision of this Agreement.
<PAGE>
6.2 Notice Requirement for Termination.
No termination of this Agreement will be effective unless and until the
Party terminating this Agreement gives prior written notice to the other Party
to this Agreement of its intent to terminate, and such notice shall set forth
the basis for such termination. Furthermore:
(a) in the event that any termination is based upon the provisions of
Sections 6.1(a) or 6.1(e) hereof, such prior written notice shall be given at
least six (6) months in advance of the effective date of termination unless a
shorter time is agreed to by the Parties hereto;
(b) in the event that any termination is based upon the provisions of
Sections 6.1(b) or 6.1(c) hereof, such prior written notice shall be given at
least ninety (90) days in advance of the effective date of termination unless a
shorter time is agreed to by the Parties hereto; and
(c) in the event that any termination is based upon the provisions of
Sections 6.1(d), 6.1(f), 6.1(g), 6.1(h) or 6.1(i) hereof, such prior written
notice shall be given as soon as possible within twenty-four (24) hours after
the terminating Party learns of the event causing termination to be required.
6.3 Funds To Remain Available.
Notwithstanding any termination of this Agreement, AVIF will, at the
option of IDS Life of New York, continue to make available additional shares of
the Fund pursuant to the terms and conditions of this Agreement, for all
Contracts in effect on the effective date of termination of this Agreement
(hereinafter referred to as ("Existing Contracts."). Specifically, without
limitation, the owners of the Existing Contracts will be permitted to reallocate
investments in the Fund (as in effect on such date), redeem investments in the
Fund and/or invest in the Fund upon the making of additional purchase payments
under the Existing Contracts. The parties agree that this Section 6.3 will not
apply to any terminations under Section 5 and the effect of such terminations
will be governed by Section 5 of this Agreement.
6.4 Survival of Warranties and Indemnifications.
All warranties and indemnifications will survive the termination of this
Agreement.
<PAGE>
6.5 Continuance of Agreement for Certain Purposes.
If any Party terminates this Agreement with respect to any Fund pursuant
to Sections 6.1(b), 6.1(c), 6.1(d), 6.1(f), 6.1(g), 6.1(h) or 6.1(i) hereof,
this Agreement shall nevertheless continue in effect as to any Shares of that
Fund that are outstanding as of the date of such termination (the "Initial
Termination Date"). This continuation shall extend to the earlier of the date as
of which an Account owns no Shares of the affected Fund or a date (the "Final
Termination Date") six (6) months following the Initial Termination Date, except
that IDS Life of New York may, by written notice shorten said six (6) month
period in the case of a termination pursuant to Sections 6.1(d), 6.1(f), 6.1(g),
6.1(h) or 6.1(i).
Section 7. Parties To Cooperate Respecting Termination
The Parties hereto agree to cooperate and give reasonable assistance to
one another in taking all necessary and appropriate steps for the purpose of
ensuring that an Account owns no Shares of a Fund after the Final Termination
Date with respect thereto, or, in the case of a termination pursuant to Section
6.1(a), the termination date specified in the notice of termination. Such steps
may include combining the affected Account with another Account, substituting
other mutual fund shares for those of the affected Fund, or otherwise
terminating participation by the Contracts in such Fund.
Section 8. Assignment
This Agreement may not be assigned by any Party, except with the written
consent of each other Party.
<PAGE>
Section 9. Notices
Notices and communications required or permitted by Section 9 hereof will be
given by means mutually acceptable to the Parties concerned. Each other notice
or communication required or permitted by this Agreement will be given to the
following persons at the following addresses and facsimile numbers, or such
other persons, addresses or facsimile numbers as the Party receiving such
notices or communications may subsequently direct in writing:
American Express Financial Advisors Inc.
IDS Life Insurance Company of New York
IDS Tower 10
Minneapolis, MN 55440-0010
Facsimile: 612-671-2269
Attn: Mr. Wendell Halvorson
cc: Mary Ellyn Minenko, Esq.
Counsel
AIM Variable Insurance Funds, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
Facsimile: 713-993-9185
Attn: Nancy L. Martin, Esq.
AIM Distributors, Inc.
11 Greenway Plaza, Suite 1919
Houston, TX 77046
Facsimile: 713-993-9185
Attn: Mr. Gary Littlepage
cc: Nancy L. Martin, Esq.
Assistant General Counsel
<PAGE>
Section 10. Voting Procedures
Subject to the cost allocation procedures set forth in Section 3 hereof,
IDS Life of New York will distribute all proxy material furnished by AVIF to
Participants to whom pass-through voting privileges are required to be extended
and will solicit voting instructions from Participants. IDS Life of New York
will vote Shares in accordance with timely instructions received from
Participants. IDS Life of New York will vote Shares that are (a) not
attributable to Participants to whom pass-through voting privileges are
extended, or (b) attributable to Participants, but for which no timely
instructions have been received, in the same proportion as Shares for which said
instructions have been received from Participants, so long as and to the extent
that the SEC continues to interpret the 1940 Act to require pass through voting
privileges for Participants. Neither IDS Life of New York nor any of its
affiliates will in any way recommend action in connection with or oppose or
interfere with the solicitation of proxies for the Shares held for such
Participants. IDS Life of New York reserves the right to vote shares held in any
Account in its own right, to the extent permitted by law. IDS Life of New York
shall be responsible for assuring that each of its Accounts holding Shares
calculates voting privileges in a manner consistent with that of other
Participating Insurance Companies or in the manner required by the Mixed and
Shared Funding exemptive order obtained by AVIF. AVIF will notify IDS Life of
New York of any changes of interpretations or amendments to Mixed and Shared
Funding exemptive order it has obtained. AVIF will comply with all provisions of
the 1940 Act requiring voting by shareholders, and in particular, AVIF either
will provide for annual meetings (except insofar as the SEC may interpret
Section 16 of the 1940 Act not to require such meetings) or will comply with
Section 16(c) of the 1940 Act (although AVIF is not one of the trusts described
in Section 16(c) of that Act) as well as with Sections 16(a) and, if and when
applicable, 16(b). Further, AVIF will act in accordance with the SEC's
interpretation of the requirements of Section 16(a) with respect to periodic
elections of directors and with whatever rules the SEC may promulgate with
respect thereto.
Section 11. Foreign Tax Credits
AVIF agrees to consult in advance with IDS Life of New York concerning
any decision to elect or not to elect pursuant to Section 853 of the Code to
pass through the benefit of any foreign tax credits to its shareholders.
<PAGE>
Section 12. Indemnification
12.1 Of AVIF and AIM by IDS Life of New York and AEFA.
(a) Except to the extent provided in Sections 12.1(b) and 12.1(c), below,
IDS Life of New York and AEFA agree to indemnify and hold harmless AVIF, AIM,
their respective affiliates, and each person, if any, who controls AVIF, AIM, or
their affiliates within the meaning of Section 15 of the 1933 Act and each of
their respective directors and officers, (collectively, the "Indemnified
Parties" for purposes of this Section 12.1) against any and all losses, claims,
damages, liabilities (including amounts paid in settlement with the written
consent of IDS Life of New York and AEFA) or actions in respect thereof
(including, to the extent reasonable, legal and other expenses), to which the
Indemnified Parties may become subject under any statute, regulation, at common
law or otherwise; provided, the Account owns shares of the Fund and insofar as
such losses, claims, damages, liabilities or actions:
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Account's
1933 Act registration statement, any Account Prospectus, the
Contracts, or sales literature or advertising for the Contracts
(or any amendment or supplement to any of the foregoing), or
arise out of or are based upon the omission or the alleged
omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not
misleading; provided, that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission
or such alleged statement or omission was made in reliance upon
and in conformity with information furnished to IDS Life of New
York or AEFA by or on behalf of AVIF for use in any Account's
1933 Act registration statement, any Account Prospectus, the
Contracts, or sales literature or advertising or otherwise for
use in connection with the sale of Contracts or Shares (or any
amendment or supplement to any of the foregoing); or
<PAGE>
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in AVIF's 1933 Act registration statement, AVIF
Prospectus, sales literature or advertising of AVIF, or any
amendment or supplement to any of the foregoing, not supplied for
use therein by or on behalf of IDS Life of New York, AEFA or
their respective affiliates and on which such persons have
reasonably relied) or the negligent, illegal or fraudulent
conduct of IDS Life of New York, AEFA or their respective
affiliates or persons under their control (including, without
limitation, their employees and "Associated Persons," as that
term is defined in paragraph (m) of Article I of the NASD's
By-Laws), in connection with the sale or distribution of the
Contracts or Shares; or
(iii)arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in AVIF's 1933
Act registration statement, AVIF Prospectus, sales literature or
advertising of AVIF, or any amendment or supplement to any of the
foregoing, or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary to make
the statements therein not misleading if such a statement or
omission was made in reliance upon and in conformity with
information furnished to AVIF, AIM or their respective affiliates
by or on behalf of IDS Life of New York, AEFA or their respective
affiliates for use in AVIF's 1933 Act registration statement,
AVIF Prospectus, sales literature or advertising of AVIF, or any
amendment or supplement to any of the foregoing; or
(iv) arise as a result of any failure by IDS Life of New York or AEFA
to perform the obligations, provide the services and furnish the
materials required of them under the terms of this Agreement, or
any material breach of any representation and/or warranty made by
IDS Life of New York or AEFA in this Agreement or arise out of or
result from any other material breach of this Agreement by IDS
Life of New York or AEFA; or
(v) arise as a result of failure by the Contracts issued by IDS Life
of New York to qualify as annuity contracts or life insurance
contracts under the Code, otherwise than by reason of any Fund's
failure to comply with Subchapter M or Section 817(h) of the
Code.
<PAGE>
(b) Neither IDS Life of New York nor AEFA shall be liable under this
Section 12.1 with respect to any losses, claims, damages, liabilities or actions
to which an Indemnified Party would otherwise be subject by reason of willful
misfeasance, bad faith, or gross negligence in the performance by that
Indemnified Party of its duties or by reason of that Indemnified Party's
reckless disregard of obligations or duties (i) under this Agreement, or (ii) to
AVIF.
(c) Neither IDS Life of New York nor AEFA shall be liable under this
Section 12.1 with respect to any action against an Indemnified Party unless AVIF
or AIM shall have notified IDS Life of New York and AEFA in writing within a
reasonable time after the summons or other first legal process giving
information of the nature of the action shall have been served upon such
Indemnified Party (or after such Indemnified Party shall have received notice of
such service on any designated agent), but failure to notify IDS Life of New
York and AEFA of any such action shall not relieve IDS Life of New York and AEFA
from any liability which they may have to the Indemnified Party against whom
such action is brought otherwise than on account of this Section 12.1. Except as
otherwise provided herein, in case any such action is brought against an
Indemnified Party, IDS Life of New York and AEFA shall be entitled to
participate, at their own expense, in the defense of such action and also shall
be entitled to assume the defense thereof, with counsel approved by the
Indemnified Party named in the action, which approval shall not be unreasonably
withheld. After notice from IDS Life of New York or AEFA to such Indemnified
Party of IDS Life of New York's or AEFA's election to assume the defense
thereof, the Indemnified Party will cooperate fully with IDS Life of New York
and AEFA and shall bear the fees and expenses of any additional counsel retained
by it, and neither IDS Life of New York nor AEFA will be liable to such
Indemnified Party under this Agreement for any legal or other expenses
subsequently incurred by such Indemnified Party independently in connection with
the defense thereof, other than reasonable costs of investigation.
12.2 Of IDS Life of New York and AEFA by AVIF and AIM.
(a) Except to the extent provided in Sections 12.2(c), 12.2(d) and
12.2(e), below, AVIF and AIM agree to indemnify and hold harmless IDS Life of
New York, AEFA, their respective affiliates, and each person, if any, who
controls IDS Life of New York, AEFA or their respective affiliates within the
meaning of Section 15 of the 1933 Act and each of their respective directors and
officers, (collectively, the "Indemnified Parties" for purposes of this Section
12.2) against any and all losses, claims, damages, liabilities (including
amounts paid in settlement with the written consent of AVIF and AIM) or actions
in respect thereof (including, to the extent reasonable, legal and other
expenses), to which the Indemnified Parties may become subject under any
statute, regulation, at common law, or otherwise; provided, the Account owns
shares of the Fund and insofar as such losses, claims, damages, liabilities or
actions:
<PAGE>
(i) arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in AVIF's 1933
Act registration statement, AVIF Prospectus or sales literature
or advertising of AVIF (or any amendment or supplement to any of
the foregoing), or arise out of or are based upon the omission or
the alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not
misleading; provided, that this agreement to indemnify shall not
apply as to any Indemnified Party if such statement or omission
or such alleged statement or omission was made in reliance upon
and in conformity with information furnished to AVIF, AIM or
their respective affiliates by or on behalf of IDS Life of New
York, AEFA or their respective affiliates for use in AVIF's 1933
Act registration statement, AVIF Prospectus, or in sales
literature or advertising or otherwise for use in connection with
the sale of Contracts or Shares (or any amendment or supplement
to any of the foregoing); or
(ii) arise out of or as a result of any other statements or
representations (other than statements or representations
contained in any Account's 1933 Act registration statement, any
Account Prospectus, sales literature or advertising for the
Contracts, or any amendment or supplement to any of the
foregoing, not supplied for use therein by or on behalf of AVIF,
AIM or their respective affiliates and on which such persons have
reasonably relied) or the negligent, illegal or fraudulent
conduct of AVIF, AIM, their respective affiliates or persons
under their control (including, without limitation, their
employees and "Associated Persons" as that Term is defined in
Section (n) of Article 1 of the NASD By-Laws), in connection with
the sale or distribution of AVIF Shares; or
<PAGE>
(iii)arise out of or are based upon any untrue statement or alleged
untrue statement of any material fact contained in any Account's
1933 Act registration statement, any Account Prospectus, sales
literature or advertising covering the Contracts, or any
amendment or supplement to any of the foregoing, or the omission
or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein not
misleading, if such statement or omission was made in reliance
upon and in conformity with information furnished to IDS Life of
New York, AEFA or their respective affiliates by or on behalf of
AVIF or AIM for use in any Account's 1933 Act registration
statement, any Account Prospectus, sales literature or
advertising covering the Contracts, or any amendment or
supplement to any of the foregoing; or
(iv) arise as a result of any failure by AVIF or AIM to perform the
obligations, provide the services and furnish the materials
required of them under the terms of this Agreement, or any
material breach of any representation and/or warranty made by
AVIF or AIM in this Agreement or arise out of or result from any
other material breach of this Agreement by AVIF or AIM.
(b) Except to the extent provided in Sections 12.2(c), 12.2(d) and
12.2(e) hereof, AVIF and AIM agree to indemnify and hold harmless the
Indemnified Parties from and against any and all losses, claims, damages,
liabilities (including amounts paid in settlement thereof with, the written
consent of AVIF or AIM) or actions in respect thereof (including, to the extent
reasonable, legal and other expenses) to which the Indemnified Parties may
become subject directly or indirectly under any statute, at common law or
otherwise, insofar as such losses, claims, damages, liabilities or actions
directly or indirectly result from or arise out of the failure of any Fund to
operate as a regulated investment company in compliance with (i) Subchapter M of
the Code and regulations thereunder, or (ii) Section 817(h) of the Code and
regulations thereunder, including, without limitation, any income taxes and
related penalties, rescission charges, liability under state law to Participants
asserting liability against IDS Life of New York pursuant to the Contracts, the
costs of any ruling and closing agreement or other settlement with the IRS, and
the cost of any substitution by IDS Life of New York of Shares of another
investment company or portfolio for those of any adversely affected Fund as a
funding medium for each Account that IDS Life of New York reasonably deems
necessary or appropriate as a result of the noncompliance.
<PAGE>
(c) Neither AVIF nor AIM shall be liable under this Section 12.2 with
respect to any losses, claims, damages, liabilities or actions to which an
Indemnified Party would otherwise be subject by reason of willful misfeasance,
bad faith, or gross negligence in the performance by that Indemnified Party of
its duties or by reason of such Indemnified Party's reckless disregard of its
obligations and duties (i) under this Agreement, or (ii) to IDS Life of New
York, AEFA, each Account or Participants.
(d) Neither AVIF nor AIM shall be liable under this Section 12.2 with
respect to any action against an Indemnified Party unless the Indemnified Party
shall have notified AVIF and AIM in writing within a reasonable time after the
summons or other first legal process giving information of the nature of the
action shall have been served upon such Indemnified Party (or after such
Indemnified Party shall have received notice of such service on any designated
agent), but failure to notify AVIF and AIM of any such action shall not relieve
AVIF and AIM from any liability which they may have to the Indemnified Party
against whom such action is brought otherwise than on account of this Section
12.2. Except as otherwise provided herein, in case any such action is brought
against an Indemnified Party, AVIF and AIM will be entitled to participate, at
their own expense, in the defense of such action and also shall be entitled to
assume the defense thereof (which shall include, without limitation, the conduct
of any ruling request and closing agreement or other settlement proceeding with
the IRS), with counsel approved by the Indemnified Party named in the action,
which approval shall not be unreasonably withheld. After notice from AVIF or AIM
to such Indemnified Party of AVIF's or AIM's election to assume the defense
thereof, the Indemnified Party will cooperate fully with AVIF and AIM and shall
bear the fees and expenses of any additional counsel retained by it, and neither
AVIF nor AIM will be liable to such Indemnified Party under this Agreement for
any legal or other expenses subsequently incurred by such Indemnified Party
independently in connection with the defense thereof, other than reasonable
costs of investigation.
(e) In no event shall AVIF or AIM be liable under the indemnification
provisions contained in this Agreement to any individual or entity, including,
without limitation, IDS Life of New York, AEFA or any other Participating
Insurance Company or any Participant, with respect to any losses, claims,
damages, liabilities or expenses that arise out of or result from (i) a breach
of any representation, warranty, and/or covenant made by IDS Life of New York or
AEFA hereunder or by any Participating Insurance Company under an agreement
containing substantially similar representations, warranties and covenants; (ii)
the failure by IDS Life of New York or any Participating Insurance Company to
maintain its segregated asset account (which invests in any Fund) as a legally
and validly established segregated asset account under applicable state law and
as a duly registered unit investment trust under the provisions of the 1940 Act
(unless exempt therefrom); or (iii) the failure by IDS Life of New York or any
Participating Insurance Company to maintain its variable annuity or life
insurance contracts (with respect to which any Fund serves as an underlying
funding vehicle) as annuity contracts or life insurance contracts under
applicable provisions of the Code.
<PAGE>
12.3 Effect of Notice.
Any notice given by the indemnifying Party to an Indemnified Party
referred to in Sections 12.1(c) or 12.2(d) above of participation in or control
of any action by the indemnifying Party will in no event be deemed to be an
admission by the indemnifying Party of liability, culpability or responsibility,
and the indemnifying Party will remain free to contest liability with respect to
the claim among the Parties or otherwise.
12.4 Successors.
A successor by law of any Party shall be entitled to the benefits of the
indemnification contained in this Section 12.
Section 13. Applicable Law
This Agreement will be construed and the provisions hereof interpreted
under and in accordance with Maryland law, without regard for that state's
principles of conflict of laws.
Section 14. Execution in Counterparts
This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together will constitute one and the same
instrument.
Section 15. Severability
If any provision of this Agreement is held or made invalid by a court
decision, statute, rule or otherwise, the remainder of this Agreement will not
be affected thereby.
Section 16. Rights Cumulative
The rights, remedies and obligations contained in this Agreement are
cumulative and are in addition to any and all rights, remedies and obligations,
at law or in equity, that the Parties are entitled to under federal and state
laws.
Section 17. Headings
The Table of Contents and headings used in this Agreement are for
purposes of reference only and shall not limit or define the meaning of the
provisions of this Agreement.
<PAGE>
Section 18. Confidentiality
AVIF acknowledges that the identities of the customers of IDS Life of New
York or any of its affiliates (collectively, the "IDS Life of New York Protected
Parties" for purposes of this Section 18), information maintained regarding
those customers, and all computer programs and procedures or other information
developed by the IDS Life of New York Protected Parties or any of their
employees or agents in connection with IDS Life of New York's performance of its
duties under this Agreement are the valuable property of the IDS Life of New
York Protected Parties. AVIF agrees that if it comes into possession of any list
or compilation of the identities of or other information about the IDS Life of
New York Protected Parties' customers, or any other information or property of
the IDS Life of New York Protected Parties, other than such information as may
be independently developed or compiled by AVIF from information supplied to it
by the IDS Life of New York Protected Parties' customers who also maintain
accounts directly with AVIF, AVIF will hold such information or property in
confidence and refrain from using, disclosing or distributing any of such
information or other property except: (a) with IDS Life of New York's prior
written consent; or (b) as required by law or judicial process. IDS Life of New
York acknowledges that the identities of the customers of AVIF or any of its
affiliates (collectively the "AVIF Protected Parties" for purposes of this
Section 18), information maintained regarding those customers, and all computer
programs and procedures or other information developed by the AVIF Protected
Parties or any of their employees or agents in connection with AVIF's
performance of its duties under this Agreement are the valuable property of the
AVIF Protected Parties. IDS Life of New York agrees that if it comes into
possession of any list or compilation of the identities of or other information
about the AVIF Protected Parties' customers or any other information or property
of the AVIF Protected Parties, other than such information as may be
independently developed or compiled by IDS Life of New York from information
supplied to it by the AVIF Protected Parties' customers who also maintain
accounts directly with IDS Life of New York, IDS Life of New York will hold such
information or property in confidence and refrain from using, disclosing or
distributing any of such information or other property except: (a) with AVIF's
prior written consent; or (b) as required by law or judicial process. Each party
acknowledges that any breach of the agreements in this Section 18 would result
in immediate and irreparable harm to the other parties for which there would be
no adequate remedy at law and agree that in the event of such a breach, the
other parties will be entitled to equitable relief by way of temporary and
permanent injunctions, as well as such other relief as any court of competent
jurisdiction deems appropriate.
<PAGE>
Section 19. Trademarks and Fund Names
(a) AIM, or its affiliates, owns all right, title and interest in and to
the name, trademark and service mark "AIM" and such other tradenames, trademarks
and service marks as may be set forth on Schedule B, as amended from time to
time by written notice from AIM to IDS Life of New York (the "AIM licensed
marks" or the "licensor's licensed marks") and is authorized to use and to
license other persons to use such marks. AIM hereby grants to IDS Life of New
York and its affiliates a non-exclusive license to use the AIM licensed marks in
connection with IDS Life of New York's performance of the services contemplated
under this Agreement, subject to the terms and conditions set forth in this
Section 19.
(b) The grant of license by AIM (a "licensor") to IDS Life of New York
and its affiliates (the "licensee") shall terminate automatically upon
termination of this Agreement. Upon automatic termination, the licensee shall
cease to use the licensor's licensed marks, except that IDS Life of New York
shall have the right to continue to service any outstanding Contracts bearing
any of the AIM licensed marks. Upon AIM's elective termination of this license,
IDS Life of New York and its affiliates shall immediately cease to issue any new
annuity or life insurance contracts bearing any of the AIM licensed marks and
shall likewise cease any activity which suggests that it has any right under any
of the AIM licensed marks or that it has any association with AIM, except that
IDS Life of New York shall have the right to continue to service outstanding
Contracts bearing any of the AIM licensed marks.
(c) The licensee shall obtain the prior written approval of the licensor
for the public release by such licensee of any materials bearing the licensor's
licensed marks. The licensor's approvals shall not be unreasonably withheld.
(d) During the term of this grant of license, a licensor may request that
a licensee submit samples of any materials bearing any of the licensor's
licensed marks which were previously approved by the licensor but, due to
changed circumstances, the licensor may wish to reconsider. If, on
reconsideration, or on initial review, respectively, any such samples fail to
meet with the written approval of the licensor, then the licensee shall
immediately cease distributing such disapproved materials. The licensor's
approval shall not be unreasonably withheld, and the licensor, when requesting
reconsideration of a prior approval, shall assume the reasonable expenses of
withdrawing and replacing such disapproved materials. The licensee shall obtain
the prior written approval of the licensor for the use of any new materials
developed to replace the disapproved materials, in the manner set forth above.
<PAGE>
(e) The licensee hereunder: (i) acknowledges and stipulates that, to the
best of the knowledge of the licensee, the licensor's licensed marks are valid
and enforceable trademarks and/or service marks and that such licensee does not
own the licensor's licensed marks and claims no rights therein other than as a
licensee under this Agreement; (ii) agrees never to contend otherwise in legal
proceedings or in other circumstances; and (iii) acknowledges and agrees that
the use of the licensor's licensed marks pursuant to this grant of license shall
inure to the benefit of the licensor.
Section 20. Parties to Cooperate
Each party to this Agreement will cooperate with each other party and all
appropriate governmental authorities (including, without limitation, the SEC,
the NASD and state insurance regulators) and will permit each other and such
authorities reasonable access to its books and records (including copies
thereof) in connection with any investigation or inquiry relating to this
Agreement or the transactions contemplated hereby.
<PAGE>
IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed in
their names and on their behalf by and through their duly authorized officers
signing below.
<TABLE>
<CAPTION>
AIM VARIABLE INSURANCE
FUNDS, INC.
<S> <C>
Attest: /s/ Nancy L. Martin By: /s/Robert H. Graham
Nancy L. Martin Name: Robert H. Graham
Assistant Secretary Title: President
AIM DISTRIBUTORS, INC.
Attest: /s/ Nancy L. Martin By: /s/W. Gary Littlepage
Nancy L. Martin Name: W. Gary Littlepage
Assistant General Title: Sr. Vice President
Counsel & Assistant
Secretary
IDS LIFE INSURANCE COMPANYOF NEW
YORK,
on behalf of itself and its
separate accounts
Attest: /s/ William A. Stoltzmann By: /s/Richard W. Kling
Name: William A. Stoltzmann Name:Richard W. Kling
Title: Counsel Title: Chairman of the
Board and President
AMERICAN EXPRESS FINANCIAL ADVISORS INC.
Attest: /s/ Mary Jo Olson By: /s/ Richard W. Kling
Name: Mary Jo Olson Name: Richard W. Kling
Title: Assistant Secretary Title: Senior Vice
President-Products
</TABLE>
<PAGE>
SCHEDULE A
FUNDS AVAILABLE UNDER THE CONTRACTS
o AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. Growth and Income Fund
SEPARATE ACCOUNTS UTILIZING THE FUNDS
o IDS Life of New York Flexible Portfolio Annuity Account
o IDS Life of New York Account 8
CONTRACTS FUNDED BY THE SEPARATE ACCOUNTS
o Flexible Premium Deferred Variable Annuity Contract Form Nos.
31037, 31036 and 31038-IRA and 31039-SEP
o Flexible Premium Variable Life Insurance Policy Form No. 39060
o Flexible Premium Survivorship Variable Life Insurance Policy
Form No. 39090
<PAGE>
SCHEDULE B
o AIM VARIABLE INSURANCE FUNDS, INC.
AIM V.I. Growth and Income Fund
o AIM and Design
PARTICIPATION AGREEMENT
By and Among
IDS LIFE INSURANCE COMPANY OF NEW YORK
And
PUTNAM CAPITAL MANAGER TRUST
And
PUTNAM MUTUAL FUNDS CORP.
THIS AGREEMENT, made and entered into this 7th day of October, 1996 by and among
IDS Life Insurance Company of New York organized under the laws of the State of
New York (the "Company"), on its own behalf and on behalf of each separate
account of the Company named in Schedule 1 to this Agreement, as may be amended
from time to time (each account referred to as the "Account"), Putnam Capital
Manager Trust, an open-end management investment company and business trust
organized under the laws of the Commonwealth of Massachusetts (the "Fund") and
Putnam Mutual Funds Corp., a Massachusetts corporation (the "Distributor").
WHEREAS, the Fund engages in business as an open-end management investment
company and was established for the purpose of serving as the investment vehicle
for separate accounts established for variable life insurance contracts and
variable annuity contracts to be offered by insurance companies that have
entered into participation agreements with the Fund and the Distributor (the
"Participating Insurance Companies"), and
WHEREAS, beneficial interests in the Fund are divided into several series of
shares, each representing the interest in a particular managed portfolio of
securities and other assets (the "Portfolios"); and
WHEREAS, the Fund has received an order from the Securities & Exchange
Commission (the "SEC") granting Participating Insurance Companies and variable
annuity separate accounts and variable life insurance separate accounts relief
from the provisions of Sections 9(a), 13(a), 15(a), and 15(b) of the Investment
Company Act of 1940, as amended, (the "1940 Act") and Rules 6e-2(b)(15) and
6e-3(T)(b)(15) thereunder, to the extent necessary to permit shares of the Fund
to be sold to and held by variable annuity separate accounts and variable life
insurance separate accounts of both affiliated and unaffiliated Participating
Insurance Companies and qualified pension and retirement plans outside of the
separate account context (the "Mixed and Shared Funding Exemptive Order"). The
parties to this Agreement agree that the conditions or undertakings specified in
the Mixed and Shared Funding Exemptive Order and that may be imposed on the
Company, the Fund and/or the Distributor by virtue of the receipt of such order
by the SEC will be incorporated herein by reference, and such parties agree to
comply with such conditions and undertakings to the extent applicable to each
such party; and
<PAGE>
WHEREAS, the Fund is registered as an open-end management investment company
under the 1940 Act and its shares are registered under the Securities Act of
1933, as amended (the "1933 Act"); and
WHEREAS, the Company has registered or will register certain variable annuity
contracts and variable life insurance contracts (the "Contracts") under the 1933
Act; and
WHEREAS, the Account is a duly organized, validly existing segregated asset
account, established by resolution of the Board of Directors of the Company
under the insurance laws of the State of New York, to set aside and invest
assets attributable to the Contracts; and
WHEREAS, the Company has registered the Account as a unit investment trust under
the 1940 Act; and
WHEREAS, to the extent permitted by applicable insurance laws and regulations,
the Company intends to purchase shares of the Portfolios named in Schedule 2, as
such schedule may be amended from time to time (the "Designated Portfolios") on
behalf of the Account to fund the Contracts, and the Fund is authorized to sell
such shares to unit investment trusts such as the Account at net asset value;
NOW, THEREFORE, in consideration of their mutual promises, the Company, the Fund
and the Distributor agree as follows:
ARTICLE I. Sale of Fund Shares
1.1. The Fund agrees, subject to the terms of this Agreement, to sell to the
Company those shares of the Designated Portfolios that each Account
orders, executing such orders on a daily basis at the net asset value
next computed after receipt and acceptance by the Fund or its designee
of the order for the shares of the Fund. For purposes of this Section
1.1, the Company will be the designee of the Fund for receipt of such
orders from each Account and receipt by such designee will constitute
receipt by the Fund; provided that the Fund receives notice of such
order by 9:00 a.m. Central Time on the next following business day.
"Business Day" will mean any day on which the New York Stock Exchange
is open for trading and on which the Fund calculates its net asset
value pursuant to the rules of the SEC.
1.2. The Company will pay for Fund shares on the next Business Day after an
order to purchase Fund shares is made in accordance with Section 1.1
above. Payment will be in federal funds transmitted by wire. The
Company will only purchase Fund shares to fund Contracts sold by the
Company or by brokerdealers affiliated with the Company.
<PAGE>
1.3. The Fund agrees to make shares of the Designated Portfolios available
indefinitely, subject to Article X, for purchase at the applicable net
asset value per share by Participating Insurance Companies and their
separate accounts on those days on which the Fund calculates its
Designated Portfolio net asset value pursuant to rules of the SEC;
provided, however, that the Trustees of the Fund (the "Trustees") may
refuse to sell shares of any Portfolio to any person, or suspend or
terminate the offering of shares of any Portfolio if such action is
required by law or by regulatory authorities having jurisdiction or is,
in the sole discretion of the Trustees, acting in good faith and in
light of their fiduciary duties under federal and any applicable state
laws, necessary or in the best interests of the shareholders of such
Portfolio.
1.4. The Fund agrees that shares of the Fund will be sold only to
Participating Insurance Companies and their separate accounts,
qualified pension and retirement plans or such other persons as are
permitted under applicable provisions of the Internal Revenue Code of
1986, as amended, (the "Internal Revenue Code"), and regulations
promulgated thereunder, the sale to which will not impair the tax
treatment currently afforded the Contracts. No shares of any Portfolio
will be sold to the general public.
1.5. The Fund agrees to redeem for cash, upon the Company's request, any
full or fractional shares of the Fund held by the Company, executing
such requests on a daily basis at the net asset value next computed
after receipt and acceptance by the Fund or its agent of the request
for redemption. For purposes of this Section 1.5, the Company will be
the designee of the Fund for receipt of requests for redemption from
each Account and receipt by such designee will constitute receipt by
the Fund; provided the Fund receives notice of request for redemption
by 9:00 a.m. Central Time on the next following Business Day. Payment
will be in federal funds transmitted by wire to the Company's account
as designated by the Company in writing from time to time, on such next
Business Day as the Fund receives notice of the redemption order from
the Company. If notification of redemption is received after 9:00 a.m.
Central Time on a Business Day, payment for redeemed shares will be
made on the next following Business Day. The Fund reserves the right to
delay payment of redemption proceeds, but in no event may such payment
be delayed longer than the period permitted under Section 22(e) of the
1940 Act. The Fund will not bear any responsibility whatsoever for the
proper disbursement or crediting of redemption proceeds, the Company
alone will be responsible for such action.
1.6. The Company agrees to purchase and redeem the shares of the Designated
Portfolios offered by the then current prospectus of the Fund in
accordance with the provisions of such prospectus. The Company will
provide the Fund with such information about the sales and redemptions
of shares as the Fund may reasonably request.
<PAGE>
1.7. Issuance and transfer of the Fund's shares will be by book entry only.
Stock certificates will not be issued to the Company or any Account.
Purchase and redemption orders for Fund shares will be recorded in an
appropriate title for each Account or the appropriate subaccount of
each Account.
1.8. The Fund will furnish same day notice (by wire or telephone, followed
by written confirmation) to the Company of the declaration of any
income, dividends or capital gain distributions payable on each
Designated Portfolio's shares. The Company hereby elects to receive all
such dividends and distributions as are payable on the Designated
Portfolio shares in the form of additional shares of that Designated
Portfolio. The Company reserves the right to revoke this election and
to receive all such dividends and distributions in cash. The Fund will
notify the Company of the number of shares so issued as payment of such
dividends and distributions.
1.9. The Fund will make the net asset value per share for each Designated
Portfolio available to the Company on a daily basis as soon as
reasonably practical after the net asset value per share is calculated
and will use its best efforts to make such net asset value per share
available by 5:30 p.m., Central Time, but other than with respect to
events outside the control of the Fund, in no event later than 6:00
p.m., Central Time, each business day.
ARTICLE II. Representations and Warranties
2.1. The Company represents and warrants that the Contracts are or will be
registered under the 1933 Act and that the Contracts will be issued and
sold in compliance with all applicable federal and state laws,
including state insurance suitability requirements. The Company further
represents and warrants that it is an insurance company duly organized
and in good standing under applicable law and that it has legally and
validly established each Account as a separate account under applicable
state law and has registered the Account as a unit investment trust in
accordance with the provisions of the 1940 Act to serve as a segregated
investment account for the Contracts, and that it will maintain such
registration for so long as any Contracts are outstanding. The Company
will amend the registration statement under the 1933 Act for the
Contracts and the registration statement under the 1940 Act for the
Account from time to time as required in order to effect the continuous
offering of the Contracts or as may otherwise be required by applicable
law. The Company will register and qualify the Contracts for sale in
accordance with the securities laws of the any state only if and to the
extent deemed necessary by the Company.
<PAGE>
2.2. The Company represents that the Contracts are currently and at the time
of issuance will be treated as annuity or life insurance contracts
under applicable provisions of the Internal Revenue Code, and that it
will make every effort to maintain such treatment and that it will
notify the Fund and the Distributor immediately upon having a
reasonable basis for believing that the Contracts have ceased to be so
treated or that they might not be so treated in the future.
2.3. The Company represents and warrants that it will not purchase shares of
the Designated Portfolios with assets derived from tax-qualified
retirement plans except, indirectly, through Contracts purchased in
connection with such plans.
2.4. The Company agrees that it will notify the Fund and the Distributor if
the Company adds an aggressive growth fund with similar objectives to
the Fund as an investment option under the Contracts sixty (60) days
prior to the effective date of such addition.
2.5. The Fund represents and warrants that Fund shares of the Designated
Portfolios sold pursuant to this Agreement will be registered under the
1933 Act and duly authorized for issuance in accordance with applicable
law and that the Fund is and will remain registered under the 1940 Act
for as long as such shares of the Designated Portfolios are sold. The
Fund will amend the registration statement for its shares under the
1933 Act and the 1940 Act from time to time as required in order to
effect the continuous offering of its shares. The Fund will register
and qualify the shares of the Designated Portfolios for sale in
accordance with the laws of any state only if and to the extent deemed
advisable by the Fund based solely on the sale of Fund shares to the
Company.
2.6. The Fund represents that it is currently qualified as a Regulated
Investment Company under Subchapter M of the Internal Revenue Code, and
that it will make every effort to maintain such qualification (under
Subchapter M or any successor or similar provision) and that it will
notify the Company immediately upon having a reasonable basis for
believing that it has ceased to so qualify or that it might not so
qualify in the future.
2.7. The Fund represents that its investment objectives, policies and
restrictions comply with applicable state securities laws as they may
apply to the Fund. The Fund makes no representation as to whether any
aspect of its operations (including, but not limited to, fees and
expenses and investment policies, objectives and restrictions) complies
with the insurance laws and regulations of any state. The Fund and the
Distributor agree that they will furnish the information required by
state insurance laws so that the Company can obtain the authority
needed to issue the Contracts in any applicable state.
<PAGE>
2.8. The Fund currently does not intend to make any payments to finance
distribution expenses pursuant to Rule 12b-1 under the 1940 Act or
otherwise, although it reserves the right to make such payments in the
future. To the extent that it decides to finance distribution expenses
pursuant to Rule 12b-1, the Fund undertakes to have the Trustees, a
majority of whom are not "interested" persons of the Fund, formulate
and approve any plan under Rule 12b-1 to finance distribution expenses.
2.9. The Fund represents that it is lawfully organized and validly existing
under the laws of the Commonwealth of Massachusetts and that it does
and will comply in all material respects with applicable provisions of
the 1940 Act.
2.10. The Distributor represents and warrants that it is and will remain duly
registered under all applicable federal and state securities laws and
that it will perform its obligations for the Fund in accordance in all
material respects with any applicable state and federal securities
laws.
2.11. The Fund represents and warrants that all of its Trustees, officers,
employees, investment advisers, and other individuals/entities having
access to the funds and/or securities of the Fund are and continue to
be at all times covered by a blanket fidelity bond or similar coverage
for the benefit of the Fund in an amount not less than the minimal
coverage as required currently by Rule 17g-(1) of the 1940 Act or
related provisions as may be promulgated from time to time. The
aforesaid bond includes coverage for larceny and embezzlement and is
issued by a reputable bonding company.
ARTICLE III. Prospectuses and Proxy Statements; Voting
3.1. The Fund will provide such documentation, including a final copy of a
current prospectus set in type or a computer diskette at the Fund's
expense, and other assistance as is reasonably necessary in order for the
Company at least annually (or more frequently if the Fund prospectus is
amended more frequently) to have the Fund's prospectus and the prospectuses
of other funds in which assets attributable to the Contracts may be
invested printed together in one document. The Company will bear the
expense of printing and distributing prospectuses. The Fund will provide
such documentation to the Company in a timely manner so that the Company
can print and distribute the prospectuses within the time required by
applicable law.
3.2. The Fund's prospectus will state that the statement of additional
information for the Fund is available from the Company. The Fund will
provide the Company, at the Fund's expense, with as many copies of the
statement of additional information as the Company may reasonably
request for distribution, at the Company's expense, to prospective
contractowners and applicants. The Fund will provide, at the Fund's
expense, as many copies of said statement of additional
<PAGE>
information as necessary for distribution, at the Fund's expense, to any
existing contractowner who requests such statement or whenever state or
federal law otherwise requires that such statement be provided. The
Fund will provide the copies of said statement of additional
information to the Company or to its mailing agent in a timely manner
so that the Company can distribute the statement of additional
information within the time required by applicable law. The Company
will distribute the statement of additional information as requested or
required and will bill the Fund for the reasonable cost of such
distribution.
3.3. The Fund, at its expense, will provide the Company or its mailing agent
with copies of its proxy material, if any, reports to shareholders and
other communications to shareholders in such quantity as the Company
will reasonably require and in a timely manner so that the Company can
distribute these documents within the time required by applicable law.
The Company will distribute this proxy material, reports and other
communications to existing contractowners, such distribution to be at
the Company's expense.
3.4. If and to the extent required by law and the Mixed & Shared Funding
Exemptive Order, the Company will:
(a) solicit voting instructions from contractowners;
(b) vote the shares of the Designated Portfolios held in the Account
in accordance with instructions received from contractowners; and
(c) vote shares of the Designated Portfolios held in the Account
for which no timely instructions have been received, in the
same proportion as shares of such Designated Portfolio for
which instructions have been received from the Company's
contractowners;
so long as and to the extent that the SEC continues to interpret the
1940 Act and the Mixed & Shared Funding Exemptive Order to require
pass-through voting privileges for variable contractowners. The Company
reserves the right to vote Fund shares held in any segregated asset
account in its own right, to the extent permitted by law and the Mixed
& Shared Funding Exemptive Order. The Company will be responsible for
assuring that each Account participating in the Fund calculates voting
privileges in a manner consistent with all legal requirements,
including the Mixed and Shared Funding Exemptive Order.
<PAGE>
3.5. The Fund will comply with all provisions of the 1940 Act requiring voting
by shareholders, and in particular, the Fund either will provide for annual
meetings (except insofar as the SEC may interpret Section 16 of the 1940
Act not to require such meetings) or, as the Fund currently intends, to
comply with Section 16(c) of the 1940 Act (although the Fund is not one of
the trusts described in Section 16(c) of that Act) as well as with Sections
16(a) and, if and when applicable, 16(b). Further, the Fund will act in
accordance with the SEC's interpretation of the requirements of Section
16(a) with respect to periodic elections of Trustees and with whatever
rules the SEC may promulgate with respect thereto.
ARTICLE IV. Sales Material and Information
4.1. The Company will furnish, or will cause to be furnished, to the
Distributor, each piece of sales literature or other promotional
material in which the Fund, its investment adviser or the Distributor
is named, at least ten (10) business days prior to its use. No such
material will be used if the Fund or the Distributor reasonably objects
to such use within five (5) business days after receipt of such
material
4.2. The Company will not give any information or make any representations or
statements on behalf of the Fund or concerning the Fund in connection with
the sale of the Contracts other than the information or representations
contained in the registration statement, prospectus or statement of
additional information for Fund shares, as such registration statement,
prospectus and statement of additional information may be amended or
supplemented from time to time, or in reports or proxy statements for the
Fund, or in published reports for the Fund which are in the public domain
or approved by the Fund or the Distributor for distribution, or in sales
literature or other material provided by the Fund or by the Distributor,
except with permission of the Fund or the Distributor. The Fund and the
Distributor agree to respond to any request for approval on a prompt and
timely basis. Nothing in this Section 4.2 will be construed as preventing
the Company or its employees or agents from giving advice on investment in
the Fund.
4.3. The Fund or the Distributor will furnish, or will cause to be
furnished, to the Company or its designee, each piece of sales
literature or other promotional material in which the Company or its
Account is named, at least ten (10) business days prior to its use. No
such material will be used if the Company reasonably objects to such
use within five (5) business days after receipt of such material.
4.4. The Fund and the Distributor will not give any information or make any
representations or statements on behalf of the Company or concerning
the Company, each Account, or the Contracts other than the information
or representations contained in a registration statement, prospectus or
statement of additional information for the Contracts, as such
registration statement, prospectus and statement of additional
information may be amended or supplemented from
<PAGE>
time to time, or in published reports for each Account or the Contracts
which are in the public domain or approved by the Company for
distribution to contractowners, or in sales literature or other
material provided by the Company, except with permission of the
Company. The Company agrees to respond to any request for approval on a
prompt and timely basis.
4.5. The Fund will provide to the Company at least one complete copy of all
registration statements, prospectuses, statements of additional
information, reports, proxy statements, sales literature and other
promotional materials naming the Company or the Account, and all
amendments to any of the above, that relate to the Fund or its shares,
promptly following the filing of such document with the SEC or the
NASD.
4.6. The Company will provide to the Fund at least one complete copy of all
registration statements, prospectuses, statements of additional
information, reports, solicitations for voting instructions, sales
literature and other promotional materials, applications for
exemptions, requests for no action letters, and all amendments to any
of the above, that relate to the Contracts or each Account, promptly
following the filing of such document with the SEC or the NASD.
4.7. For purposes of this Article IV, the phrase "sales literature or other
promotional material" includes, but is not limited to, advertisements (such
as material published, or designed for use in, a newspaper, magazine, or
other periodical, radio, television, telephone or tape recording, videotape
display, signs or billboards, motion pictures, or other public media,
(e.g., on-line networks such as the Internet or other electronic messages),
sales literature (i.e., any written communication distributed or made
generally available to customers or the ----- public, including brochures,
circulars, research reports, market letters, form letters, seminar texts,
reprints or excerpts of any other advertisement, sales literature, or
published article), educational or training materials or other
communications distributed or made generally available to some or all
agents or employees, registration statements, prospectuses, statements of
additional information, shareholder reports, and proxy materials and any
other material constituting sales literature or advertising under the NASD
rules, the 1933 Act or the 1940 Act.
4.8. The Fund and the Distributor hereby consent to the Company's use of the
names "Putnam", "Putnam Capital Manager Trust", and "PCM", in
connection with marketing the Contracts, subject to the terms of
Sections 4.1 and 4.2 of this Agreement. Such consent will terminate
with the termination of this Agreement.
<PAGE>
ARTICLE V. Fees and Expenses
5.1. The Fund and the Distributor will pay no fee or other compensation to the
Company under this Agreement, except: (a) if the Fund or any Designated
Portfolio adopts and implements a plan pursuant to Rule 12b-1 under the
1940 Act to finance distribution expenses, then, subject to obtaining any
required exemptive orders or other regulatory approvals, the Distributor
may make payments to the Company if and in such amounts agreed to by the
Distributor in writing; and (b) the Fund may pay fees to the Company for
services provided to contractowners that are not primarily intended to
result in the sale of shares of the Designated Portfolio or of underlying
contracts.
5.2. All expenses incident to performance by the Fund of this Agreement will be
paid by the Fund to the extent permitted by law. All shares of the
Designated Portfolios will be duly authorized for issuance and registered
in accordance with applicable federal law and, to the extent deemed
advisable by the Fund, in accordance with applicable state law, prior to
sale. The Fund will bear the expenses for the cost of registration and
qualification of the Fund's shares; preparation and filing of the Fund's
prospectus, statement of additional information and registration statement,
proxy materials and reports; setting the Fund's prospectus in type; setting
in type and printing proxy materials and reports to contractowners the
preparation of all statements and notices required by any federal or state
law; all taxes on the issuance or transfer of the Fund's shares; any
expenses permitted to be paid or assumed by the Fund pursuant to a plan, if
any, under Rule 12b-1 under the 1940 Act; and all other expenses set forth
in Article III of this Agreement.
5.3. The Company will bear all expenses incident to the performance of its
obligations under this Agreement. The Company will bear those expenses of:
(a) printing and distributing the Fund's prospectus to existing and
prospective contractowners; (b) distributing reports to contractowners; and
(c) distributing the Fund's proxy materials to contractowners as set forth
in Article III of this Agreement.
ARTICLE VI. Diversification
6.1. The Fund will comply with Section 817(h) of the Internal Revenue Code
and Treasury Regulation 1.817-5, relating to the diversification
requirements for variable annuity, endowment, or life insurance
contracts. In the event of a breach of this Article VI by the Fund, it
will take all reasonable steps: (a) to notify the Company of such
breach; and (b) to adequately diversify the Fund so as to achieve
compliance within the grace period afforded by Treasury Regulation.
<PAGE>
ARTICLE VII. Potential Conflicts
7.1. The Trustees will monitor the Fund for the existence of any irreconcilable
material conflict among the interests of the contractowners of all separate
accounts investing in the Fund. An irreconcilable material conflict may
arise for a variety of reasons, including: (a) an action by any state
insurance regulatory authority; (b) a change in applicable federal or state
insurance, tax, or securities laws or regulations, or a public ruling,
private letter ruling, no-action or interpretative letter, or any similar
action by insurance, tax, or securities regulatory authorities; (c) an
administrative or judicial decision in any relevant proceeding; (d) the
manner in which the investments of any Portfolio are being managed; (e) a
difference in voting instructions given by Participating Insurance
Companies or by variable annuity and variable life insurance
contractowners; or (f) a decision by an insurer to disregard the voting
instructions of contractowners. The Trustees will promptly inform the
Company if it determines that an irreconcilable material conflict exists
and the implications thereof.
7.2. The Company will report any potential or existing conflicts of which it
is aware to the Trustees. The Company agrees to assist the Trustees in
carrying out their responsibilities, as delineated in the Mixed and
Shared Funding Exemptive Order, by providing the Trustees with all
information reasonably necessary for them to consider any issues
raised. This includes, but is not limited to, an obligation by the
Company to inform the Trustees whenever contractowner voting
instructions are to be disregarded. The Trustees will record in their
minutes, or other appropriate records, all reports received by them and
all action with regard to a conflict.
7.3. If it is determined by a majority of the Trustees, or a majority of the
disinterested Trustees, that an irreconcilable material conflict exists,
the Company and other Participating Insurance Companies will, at their
expense and to the extent reasonably practicable (as determined by a
majority of the disinterested Trustees), take whatever steps are necessary
to remedy or eliminate the irreconcilable material conflict, up to and
including: (a) withdrawing the assets allocable to some or all of the
Accounts from the Fund or any Portfolio and reinvesting such assets in a
different investment medium, including (but not limited to) another
Portfolio of the Fund, or submitting the question whether such segregation
should be implemented to a vote of all affected contractowners and, as
appropriate, segregating the assets of any appropriate group (i.e.,
variable annuity contractowners or variable life insurance contractowners
of one ---- or more Participating Insurance Companies) that votes in favor
of such segregation, or offering to the affected contractowners the option
of making such a change; and (b) establishing a new registered management
investment company or managed separate account.
<PAGE>
7.4. If a material irreconcilable conflict arises because of a decision by the
Company to disregard contractowner voting instructions, and such disregard
of voting instructions could conflict with the majority of contractowner
voting instructions, and the Company's judgment represents a minority
position that would preclude a majority vote, the Company may be required,
at the Fund's election, to withdraw the affected subaccount of the
Account's investment in the Fund and terminate this Agreement with respect
to such subaccount; provided, however, that such withdrawal and termination
will be limited to the extent required by the foregoing irreconcilable
material conflict as determined by a majority of the disinterested
Trustees. No charge or penalty will be imposed as a result of such
withdrawal. Any such withdrawal and termination must take place within six
(6) months after the Fund gives written notice to the Company that this
provision is being implemented. Until the end of such six-month period the
Distributor and Fund will, to the extent permitted by law and any exemptive
relief previously granted to the Fund, continue to accept and implement
orders by the Company for the purchase (and redemption) of shares of the
Fund.
7.5. If a material irreconcilable conflict arises because of a particular state
insurance regulator's decision applicable to the Company to disregard
contractowner voting instructions, and that decision represents a minority
position that would preclude a majority vote, then the Company may be
required, at the Fund's direction, to withdraw the affected subaccount of
the Account's investment in the Fund and terminate this Agreement with
respect to such subaccount; provided, however, that such withdrawal and
termination will be limited to the extent required by the foregoing
irreconcilable material conflict as determined by a majority of the
disinterested Trustees. No charge or penalty will be imposed as a result of
such withdrawal. Any such withdrawal and termination must take place within
six (6) months after the Fund gives written notice to the Company that this
provision is being implemented. Until the end of such six-month period the
Distributor and Fund will, to the extent permitted by law and any exemptive
relief previously granted to the Fund, continue to accept and implement
orders by the Company for the purchase (and redemption) of shares of the
Fund.
7.6. For purposes of Sections 7.3 through 7.6 of this Agreement, a majority
of the disinterested Trustees will determine whether any proposed
action adequately remedies any irreconcilable material conflict, but in
no event will the Fund be required to establish a new funding medium
for the Contracts. The Company will not be required to establish a new
funding medium for the Contracts if an offer to do so has been declined
by vote of a majority of contractowners affected by the irreconcilable
material conflict.
<PAGE>
7.7. The Company will at least annually submit to the Trustees such reports,
materials or data as the Trustees may reasonably request so that they
may fully carry out the duties imposed upon them as delineated in the
Mixed and Shared Funding Exemptive Order, and said reports, materials
and data will be submitted more frequently if deemed appropriate by the
Trustees.
7.8. If and to the extent that Rule 6e-2 and Rule 6e-3(T) are amended, or Rule
6e-3 is adopted, to provide exemptive relief from any provision of the 1940
Act or the rules promulgated thereunder with respect to mixed or shared
funding (as defined in the Mixed and Shared Funding Exemptive Order) on
terms and conditions materially different from those contained in the Mixed
and Shared Funding Exemptive Order, then: (a) the Fund and/or the
Participating Insurance Companies, as appropriate, will take such steps as
may be necessary to comply with Rules 6e-2 and 6e-3(T), as amended, and
Rule 6e-3, as adopted, to the extent such rules are applicable; and (b)
Sections 3.4, 3.5, 7.1, 7.2, 7.3, 7.4, and 7.5 of this Agreement will
continue in effect only to the extent that terms and conditions
substantially identical to such Sections are contained in such Rule(s) as
so amended or adopted.
ARTICLE VIII. Indemnification
8.1. Indemnification By The Company
(a) The Company agrees to indemnify and hold harmless the Fund, the
Distributor, and each person, if any, who controls or is associated
with the Fund or the Distributor within the meaning of such terms
under the federal securities laws and any director, trustee, officer,
partner, employee or agent of the foregoing (collectively, the
"Indemnified Parties" for purposes of this Section 8.1 ) against any
and all losses, claims, expenses, damages, liabilities (including
amounts paid in settlement with the written consent of the Company
which consent may not be unreasonably withheld) or litigation
(including reasonable legal and other expenses) to which the
Indemnified Parties may become subject under any statute, regulation,
at common law or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions in respect thereof) or
settlements:
(1) arise out of or are based upon any untrue statements
or alleged untrue statements of any material fact
contained in the registration statement, prospectus
or statement of additional information for the
Contracts or contained in the Contracts or sales
literature or other promotional material for the
Contracts (or any amendment or supplement to any of
the foregoing), or arise out of or are based upon the
omission or the alleged omission to state therein a
material fact required to be stated or necessary to
make such statements not misleading in light of the
circumstances in which they
<PAGE>
were made; provided that this agreement to indemnify
will not apply as to any Indemnified Party if such
statement or omission or such alleged statement or
omission was made in reliance upon and in conformity
with information furnished to the Company by or on
behalf of the Distributor or the Fund for use in the
registration statement, prospectus or statement of
additional information for the Contracts or in the
Contracts or sales literature (or any amendment or
supplement) or otherwise for use in connection with
the sale of the Contracts or Fund shares; or
(2) arise out of or as a result of statements or
representations by or on behalf of the Company (other
than statements or representations contained in the
Fund registration statement, prospectus, statement of
additional information or sales literature or other
promotional material of the Fund (or any amendment or
supplement) not supplied by the Company or persons
under control of the Company), or wrongful conduct of
the Company or persons under its control, with
respect to the sale or distribution of the Contracts
or Fund shares; or
(3) arise out of any untrue statement or alleged untrue
statement of a material fact contained in the Fund
registration statement, prospectus, statement of
additional information or sales literature or other
promotional material of the Fund (or amendment or
supplement) or the omission or alleged omission to
state therein a material fact required to be stated
therein or necessary to make such statements not
misleading in light of the circumstances in which
they were made, if such a statement or omission was
made in reliance upon and in conformity with
information furnished to the Fund or the Distributor
by or on behalf of the Company or persons under its
control; or
(4) arise out of any material breach of any
representation and/or warranty made by the Company in
this Agreement or arise out of or result from any
other material breach by the Company of this
Agreement;
except to the extent provided in Sections 8.1(b) and 8.4
hereof. This indemnification will be in addition to any
liability that the Company otherwise may have.
<PAGE>
(b) No party will be entitled to indemnification under Section
8.1(a) if the loss, claim, damage, liability or litigation for
which indemnification is sought is due to the willful
misfeasance, bad faith, or gross negligence in the performance
of such party's duties under this Agreement, or by reason of
such party's reckless disregard of its obligations or duties
under this Agreement by such party.
(c) An Indemnified Party promptly will notify the Company of the
commencement of any litigation, proceedings, complaints or
actions by regulatory authorities against him, her or it in
connection with the issuance or sale of the Fund shares or the
Contracts or the operation of the Fund.
8.2. Indemnification By The Distributor
(a) The Distributor agrees to indemnify and hold harmless the Company
and each person, if any, who controls or is associated with the
Company within the meaning of such terms under the federal
securities laws and any director, trustee, officer, partner,
employee or agent of the foregoing (collectively, the
"Indemnified Parties" for purposes of this Section 8.2) against
any and all losses, claims, expenses, damages, liabilities
(including amounts paid in settlement with the written consent of
the Distributor which consent may not be unreasonably withheld)
or litigation (including reasonable legal and other expenses) to
which the Indemnified Parties may become subject under any
statute, regulation, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions in
respect thereof) or settlements:
(1) arise out of or are based upon any untrue statements
or alleged untrue statements of any material fact
contained in the sales literature or other
promotional material of the Fund (or any amendment or
supplement to any of the foregoing), or arise out of
or are based upon the omission or the alleged
omission to state therein a material fact required to
be stated or necessary to make such statements not
misleading in light of the circumstances in which
they were made; provided that this agreement to
indemnify will not apply as to any Indemnified Party
if such statement or omission or such alleged
statement or omission was made in reliance upon and
in conformity with information furnished to the
Distributor or Fund by or on behalf of the Company
for use in the sales literature of the Fund (or any
amendment or supplement thereto) or otherwise for use
in connection with the sale of the Contracts or Fund
shares; or
<PAGE>
(2) arise out of or as a result of statements or
representations (other than statements or
representations contained in the Contracts or in the
Contract or Fund registration statements,
prospectuses or statements of additional information
or sales literature or other promotional material for
the Contracts or the Fund (or any amendment or
supplement) not supplied by the Distributor or the
Fund or persons under the control of the Distributor
or the Fund respectively) or wrongful conduct of the
Distributor or persons under the control of the
Distributor, with respect to the sale or distribution
of the Contracts or Fund shares; or
(3) arise out of any untrue statement or alleged untrue
statement of a material fact contained in a
registration statement, prospectus, statement of
additional information or sales literature or other
promotional material covering the Contracts (or any
amendment or supplement thereto), or the omission or
alleged omission to state therein a material fact
required to be stated or necessary to make such
statement or statements not misleading in light of
the circumstances in which they were made, if such
statement or omission was made in reliance upon and
in conformity with information furnished to the
Company by or on behalf of the Distributor or persons
under the control of the Distributor; or
(4) arise out of or result from any material breach of
any representation and/or warranty made by the
Distributor in this Agreement or arise out of or
result from any other material breach of this
Agreement by the Distributor (including a failure,
whether unintentional or in good faith or otherwise,
to comply with the diversification requirements and
procedures related thereto specified in Article VI of
this Agreement); or
(5) arise out of or result from any failure to supply
timely and accurate net asset value information
related to the Fund, as contemplated by Article I,
which failure is the result of gross negligence or
willful misconduct of the Distributor or its
affiliates (it being agreed that neither the
Distributor or such affiliates assume responsibility
for the timing or accuracy of prices supplied by
independent third parties, such as pricing services
and market makers);
except to the extent provided in Sections 8.2(b) and 8.4 hereof.
<PAGE>
(b) No party will be entitled to indemnification under Section
8.2(a) if the loss, claim, damage, liability or litigation for
which indemnification is sought is due to the willful
misfeasance, bad faith, or gross negligence in the performance
of such party's duties under this Agreement, or by reason of
such party's reckless disregard of its obligations or duties
under this Agreement by such party.
(c) The Indemnified Parties will promptly notify the Distributor
and the Fund of the commencement of any litigation,
proceedings, complaints or actions by regulatory authorities
against them in connection with the issuance or sale of the
Contracts or the operation of the Account.
8.3. Indemnification By the Fund
(a) The Fund agrees to indemnify and hold harmless the Company and each
person, if any, who controls or is associated with the Company within
the meaning of such terms under the federal securities laws and any
director, trustee, officer, partner, employee or agent of the
foregoing (collectively, the "Indemnified Parties" for purposes of
this Section 8.3) against any and all losses, claims, expenses,
damages, liabilities (including amounts paid in settlement with the
written consent of the Fund which consent may not be unreasonably
withheld) or litigation (including reasonable legal and other
expenses) to which the Indemnified Parties may become subject under
any statute, regulation, at common law or otherwise, insofar as such
losses, claims, damages, liabilities or expenses (or actions in
respect thereof or settlements, are related to the operations of the
Fund and:
(1) arise out of or based upon any untrue statement or
alleged untrue statement of any material fact
contained in the registration statement, prospectus
or statement of additional information for the Fund
(or any amendment or supplement to any of the
foregoing), or arise out of or are based upon the
omission or the alleged omission to state therein a
material fact required to be stated therein or
necessary to make the statements therein not
misleading in light of the circumstances in which
they were made, provided that this agreement to
indemnify shall not apply as to any Indemnified Party
if such statement or omission or such alleged
statement or omission was made in reliance upon and
in conformity with information furnished to the
Distributor or Fund by or on behalf of the Company
for use in the registration statement, prospectus, or
statement of additional information for the Fund (or
any amendment or supplement) or otherwise for use in
connection with the sale of the Contracts or Fund
shares; or (2) arise out of or result from any
material breach of any representation
<PAGE>
and/or warranty made by the Fund in this Agreement or
arise out of or result from any other material breach
of this Agreement by the Fund;
except to the extent provided in Sections 8.3(b) and 8.4 hereof.
(b) No party will be entitled to indemnification under Section 8.3(a)
if the loss, claim, damage, liability or litigation for which
indemnification is sought is due to the willful misfeasance, bad
faith, or gross negligence in the performance of such party's
duties under this Agreement, or by reason of such party's reckless
disregard of its obligations and duties under this Agreement by
such party.
(c) The Indemnified Parties will promptly notify the Fund of the
commencement of any litigation, proceedings, complaints or actions
by regulatory authorities against them in connection with the
issuance or sale of the Contracts or the operation of the Account.
8.4. Indemnification Procedure
Any person obligated to provide indemnification under this Article VIII
("Indemnifying Party" for the purpose of this Section 8.4) will not be
liable under the indemnification provisions of this Article VIII with
respect to any claim made against a party entitled to indemnification
under this Article VIII ("Indemnified Party" for the purpose of this
Section 8.4) unless such Indemnified Party will have notified the
Indemnifying Party in writing within a reasonable time after the
summons or other first legal process giving information of the nature
of the claim will have been served upon such Indemnified Party (or
after such party will have received notice of such service on any
designated agent), but failure to notify the Indemnifying Party of any
such claim will not relieve the Indemnifying Party from any liability
which it may have to the Indemnified Party against whom such action is
brought otherwise than on account of the indemnification provision of
this Article VIII, except to the extent that the failure to notify
results in the failure of actual notice to the Indemnifying Party and
such Indemnifying Party is damaged solely as a result of failure to
give such notice. In case any such action is brought against the
Indemnified Party, the Indemnifying Party will be entitled to
participate, at its own expense, in the defense thereof. The
Indemnifying Party also will be entitled to assume the defense thereof,
with counsel satisfactory to the party named in the action. After
notice from the Indemnifying Party to the Indemnified Party of the
Indemnifying Party's election to assume the defense thereof, the
Indemnified Party will bear the fees and expenses of any additional
counsel retained by it, and the Indemnifying Party will not be liable
to such party under this Agreement for any legal or other expenses
subsequently incurred by such party independently in connection with
the defense thereof other than reasonable costs of investigation,
unless: (a) the Indemnifying Party and the
<PAGE>
Indemnified Party will have mutually agreed to the retention of such counsel; or
(b) the named parties to any such proceeding (including any impleaded
parties) include both the Indemnifying Party and the Indemnified Party
and representation of both parties by the same counsel would be
inappropriate due to actual or potential differing interests between
them. The Indemnifying Party will not be liable for any settlement of
any proceeding effected without its written consent (such consent may
not be unreasonably withheld) but if settled with such consent or if
there is a final judgment for the plaintiff, the Indemnifying Party
agrees to indemnify the Indemnified Party from and against any loss or
liability by reason of such settlement or judgment. A successor by law
of the parties to this Agreement will be entitled to the benefits of
the indemnification contained in this Article VIII. The indemnification
provisions contained in this Article VIII will survive any termination
of this Agreement.
ARTICLE IX. Applicable Law
9.1. This Agreement will be construed and the provisions hereof interpreted
under and in accordance with the laws of the State of Minnesota
9.2. This Agreement will be subject to the provisions of the 1933 Act, the
1934 Act and the 1940 Act, and the rules and regulations and rulings
thereunder, including such exemptions from those statutes, rules and
regulations as the SEC may grant (including, but not limited to, the
Mixed and Shared Funding Exemptive Order) and the terms hereof will be
interpreted and construed in accordance therewith.
ARTICLE X. Termination
10.1. This Agreement will terminate:
(a) at the option of any party, with or without cause, with
respect to some or all of the Designated Portfolios, upon six
(6) month's advance written notice to the other parties or, if
later, upon receipt of any required exemptive relief or orders
from the SEC, unless otherwise agreed in a separate written
agreement among the parties; or
(b) at the option of the Company, upon receipt of the Company's
written notice by the other parties, with respect to any
Designated Portfolio if shares of the Designated Portfolio are
not reasonably available to meet the requirements of the
Contracts as determined in good faith by the Company; or
<PAGE>
(c at the option of the Company, upon receipt of the Company's
written notice by the other parties, with respect to any
Designated Portfolio in the event any of the Designated
Portfolio's shares are not registered, issued or sold in
accordance with applicable state and/or federal law or such
law precludes the use of such shares as the underlying
investment media of the Contracts issued or to be issued by
Company; or
(d) at the option of the Fund or the Distributor, upon receipt of
the Fund's or the Distributor's written notice by the other
parties, upon institution of formal proceedings against the
Company by the NASD, the SEC, the insurance commission of any
state or any other regulatory body, provided that the Fund or
the Distributor determines in its sole judgment, exercised in
good faith, that any such proceeding would have a material
adverse effect on the Company's ability to perform its
obligations under this Agreement; or
(e) at the option of the Company, upon receipt of the Company's
written notice by the other parties, upon institution of
formal proceedings against the Fund or the Distributor by the
NASD, the SEC, or any state securities or insurance department
or any other regulatory body, provided that the Company
determines in its sole judgment, exercised in good faith, that
any such proceeding would have a material adverse effect on
the Fund's or the Distributor's ability to perform its
obligations under this Agreement; or
(f) at the option of the Company, upon receipt of the Company's
written notice by the other parties, if the Fund ceases to
qualify as a Regulated Investment Company under Subchapter M
of the Internal Revenue Code, or under any successor or
similar provision, or if the Company reasonably and in good
faith believes that the Fund may fail to so qualify; or
(g) at the option of the Company, upon receipt of the Company's
written notice by the other parties, with respect to any
Designated Portfolio if the Fund fails to meet the
diversification requirements specified in Article VI hereof or
if the Company reasonably and in good faith believes the Fund
may fail to meet such requirements; or
(h) at the option of any party to this Agreement, upon written
notice to the other parties, upon another party's material
breach of any provision of this Agreement; or
<PAGE>
(i) at the option of the Company, if the Company determines in its
sole judgment exercised in good faith, that either the Fund or
the Distributor has suffered a material adverse change in its
business, operations or financial condition since the date of
this Agreement or is the subject of material adverse publicity
which is likely to have a material adverse impact upon the
business and operations of the Company, such termination to be
effective sixty (60) days' after receipt by the other parties
of written notice of the election to terminate; or
(j) at the option of the Fund or the Distributor, if the Fund or
Distributor respectively, determines in its sole judgment
exercised in good faith, that the Company has suffered a
material adverse change in its business, operations or
financial condition since the date of this Agreement or is the
subject of material adverse publicity which is likely to have
a material adverse impact upon the business and operations of
the Fund or the Distributor, such termination to be effective
sixty (60) days' after receipt by the other parties of written
notice of the election to terminate; or
(k) at the option of the Company or the Fund upon receipt of any
necessary regulatory approvals and/or the vote of the
contractowners having an interest in the Account (or any
subaccount) to substitute the shares of another investment
company for the corresponding Designated Portfolio shares of the
Fund in accordance with the terms of the Contracts for which
those Designated Portfolio shares had been selected to serve as
the underlying investment media. The Company will give sixty (60)
days' prior written notice to the Fund of the date of any
proposed vote or other action taken to replace the Fund's shares;
or
(l) at the option of the Company or the Fund upon a determination
by a majority of the Trustees, or a majority of the
disinterested members, that an irreconcilable material
conflict exists among the interests of: (1) all contractowners
of variable insurance products of all separate accounts; or
(2) the interests of the Participating Insurance Companies
investing in the Fund as set forth in Article VII of this
Agreement; or
(m) at the option of the Fund in the event any of the Contracts are
not issued or sold in accordance with applicable federal and/or
state law. Termination will be effective immediately upon such
occurrence without notice; or
(n) with respect to any Designated Portfolio, upon sixty (60)
days' advance written notice from the Distributor to the
Company, upon a decision by the Distributor or the Fund to
cease offering shares of the Designated Portfolio for sale; or
(o) at the option of the Distributor or the Fund, upon sixty (60)
days' prior written notice to the Company, if the Company
delivers the notice contemplated by Section 2.4.
10.2. Notice Requirement
(a) No termination of this Agreement will be effective unless and
until the party terminating this Agreement gives prior written
notice to all other parties of its intent to terminate, which
notice will set forth the basis for the termination.
(b) In the event that any termination of this Agreement is based
upon the provisions of Article VII, such prior written notice
will be given in advance of the effective date of termination
as required by such provisions.
10.3. Effect of Termination
Notwithstanding any termination of this Agreement, the Fund and the
Distributor will, at the option of the Company, continue to make
available additional shares of the Fund pursuant to the terms and
conditions of this Agreement, for all Contracts in effect on the
effective date of termination of this Agreement (hereinafter referred
to as "Existing Contracts."). Specifically, without limitation, the
owners of the Existing Contracts will be permitted to reallocate
investments in the Portfolios (as in effect on such date), redeem
investments in the Portfolios and/or invest in the Portfolios upon the
making of additional purchase payments under the Existing Contracts to
the same extent as if this Agreement had not terminated. The parties
agree that this Section 10.3 will not apply to any terminations under
Article VII and the effect of such Article VII terminations will be
governed by Article VII of this Agreement.
10.4 Surviving Provisions
Notwithstanding any termination of this Agreement, each party's
obligations under Article VIII to indemnify other parties will survive
and not be affected by any termination of this Agreement. In addition,
with respect to Existing Contracts, all provisions of this Agreement
also will survive and not be affected by any termination of this
Agreement.
<PAGE>
ARTICLE XI. Notices
11.1. Any notice will be deemed duly given when sent by registered or
certified mail to the other party at the address of such party set
forth below or at such other address as such party may from time to
time specify in writing to the other parties.
If to the Company:
IDS Life Insurance Company of New York
c/o American Express Financial Advisors Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
Attention: Mr. Wendell Halvorson
With a simultaneous copy to:
IDS Life Insurance Company of New York
c/o American Express Financial Advisors Inc.
IDS Tower 10
Minneapolis, MN 55440-0010
Attention: Ms. Mary Ellyn Minenko
Counsel
If to the Fund:
One Post Office Square
Boston, MA 02109
Attention: Mr. John R. Verani
If to the Distributor:
One Post Office Square
Boston, MA 02109
Attention: General Counsel
ARTICLE XII. Miscellaneous
12.1. A copy of the Agreement and Declaration of Trust of the Fund is on file
with the Secretary of State of the Commonwealth of Massachusetts, and
notice is hereby given that this instrument is executed on behalf of
the Trustees of the Fund as Trustees and not individually and that the
obligations of or arising out of this instrument, including without
limitations Article VII are not binding upon any of the Trustees or
shareholders individually but binding only upon the assets and property
of the Fund.
<PAGE>
12.2.The Fund and the Distributor acknowledge that the identities of the
customers of the Company or any of its affiliates (collectively the
"Protected Parties" for purposes of this Section 12.2), information
maintained regarding those customers, and all computer programs and
procedures or other information developed or used by the Protected Parties
or any of their employees or agents with respect to such customers are the
valuable property of the Protected Parties. The Fund and the Distributor
agree that if they come into possession of any list or compilation of the
identities of or other information about the Protected Parties' customers,
or any other confidential information or property of the Protected Parties,
other than such information as may be independently developed or compiled
by the Fund or the Distributor from information supplied to them by the
Protected Parties' customers who also maintain accounts directly with the
Fund or the Distributor, the Fund and the Distributor will hold such
information or property in confidence and refrain from using, disclosing or
distributing any of such information or other property except: (a) with the
Company's prior written consent; or (b) as required by law or judicial
process. The Fund and the Distributor acknowledge that any breach of the
agreements in this Section 12.2 would result in immediate and irreparable
harm to the Protected Parties for which there would be no adequate remedy
at law and agree that in the event of such a breach, the Protected Parties
will be entitled to equitable relief by way of temporary and permanent
injunctions, as well as such other relief as any court of competent
jurisdiction deems appropriate.
12.3. The captions in this Agreement are included for convenience of
reference only and in no way define or delineate any of the provisions
hereof or otherwise affect their construction or effect.
12.4. This Agreement may be executed simultaneously in two or more
counterparts, each of which taken together will constitute one and the
same instrument.
12.5. If any provision of this Agreement will be held or made invalid by a
court decision, statute, rule or otherwise, the remainder of the
Agreement will not be affected thereby.
12.6.This Agreement will not be assigned by any party hereto without the prior
written consent of all the parties.
<PAGE>
12.7. Each party to this Agreement will cooperate with each other party and
all appropriate governmental authorities (including without limitation
the SEC, the NASD and state insurance regulators) and will permit each
other and such authorities reasonable access to its books and records
in connection with any investigation or inquiry relating to this
Agreement or the transactions contemplated hereby. The Fund agrees that
the Company will have the right to inspect, audit and copy all records
pertaining to the performance of services under this Agreement pursuant
to the requirements of any state insurance department.
12.8. Each party represents that the execution and delivery of this Agreement
and the consummation of the transactions contemplated herein have been
duly authorized by all necessary corporate or board action, as
applicable, by such party and when so executed and delivered this
Agreement will be the valid and binding obligation of such party
enforceable in accordance with its terms.
12.9. The parties to this Agreement may amend the schedules to this Agreement
from time to time to reflect changes in or relating to the Contracts,
the Accounts or the Designated Portfolios of the Fund or other
applicable terms of this Agreement.
IN WITNESS WHEREOF, each of the parties hereto has caused this Agreement to be
executed in its name and behalf by its duly authorized representative and its
seal to be hereunder affixed hereto as of the date specified below.
IDS LIFE INSURANCE COMPANY
OF NEW YORK
SEAL
By: /s/ Richard W. Kling
Name: Richard W. Kling
Chairman of the Board
Title: and President
ATTEST:
By: /s/ William A. Stoltzmann
Name: William A. Stoltzmann
Title: Counsel
PUTNAM CAPITAL MANAGER TRUST
<PAGE>
SEAL
By: /s/ John R. Verani
Name: John R. Verani
Title: Vice President
PUTNAM MUTUAL FUNDS CORP.
SEAL
By: /s/ Jeffrey Miller
Name: Jeffrey Miller
Title: Managing Director
<PAGE>
Schedule 1
PARTICIPATION AGREEMENT
By and Among
IDS LIFE INSURANCE COMPANY OF NEW YORK
And
PUTNAM CAPITAL MANAGER TRUST
And
PUTNAM MUTUAL FUNDS CORP.
The following separate accounts of IDS Life Insurance Company of New York are
permitted in accordance with the provisions of this Agreement to invest in
Designated Portfolios of the Fund shown in Schedule 2:
IDS Life of New York Flexible Portfolio Annuity Account
established April 17, 1996.
IDS Life of New York Account 8 established September 12, 1985.
October 7, 1996
<PAGE>
Schedule 2
PARTICIPATION AGREEMENT
By and Among
IDS LIFE INSURANCE COMPANY OF NEW YORK
And
PUTNAM CAPITAL MANAGER TRUST
And
PUTNAM MUTUAL FUNDS CORP.
The Separate Account(s) shown on Schedule 1 may invest in the following
Designated Portfolios of the Putnam Capital Manager Trust:
PCM New Opportunities Fund
October 7, 1996
ADDENDUM TO INVESTMENT MANAGEMENT AND SERVICES AGREEMENT
"Part Two: COMPENSATION TO INVESTMENT MANAGER" paragraph (1) of the Investment
Management and Services Agreement between IDS Life Series Fund, Inc. (the Fund)
and IDS Life Insurance Company (IDS Life) dated December 17, 1985, has been
modified as follows. All other provisions of this Investment Management and
Services Agreement remain in full force and effect.
(1) The Fund agrees to pay IDS Life, and IDS Life covenants and agrees to accept
from the Fund in full payment for all the services furnished, and for the use of
all facilities and equipment, and for all expenses paid or reimbursed by IDS
Life hereunder, a fee for each calendar day of each year equal to the total of
1/365th (1/366th in each leap year) of:
.70 percent for the Equity Portfolio
.70 percent for the Income Portfolio
.70 percent for the Managed Portfolio
.70 percent for the Government Securities Portfolio .95 percent for the
International Equity Portfolio and .50 percent for the Money Market
Portfolio
to be computed for each day on the basis of net assets as of the close of
business of the full business day two (2) business days prior to the day for
which the computation is being made. In the case of the suspension of the
computation of net asset value, the said fee for each day during such suspension
shall be computed as of the close of business on the last full business day on
which the net assets were computed. As used herein, "net assets" as of the close
of a full business day shall include all transactions in shares of the Fund
recorded on the books of the Fund for that day.
IN WITNESS WHEREOF, the
parties have executed the
Addendum as of the 28th day
of October, 1994 IDS LIFE
SERIES FUND, INC.
Attest: /s/ Colleen Curran By: /s/ Richard W. Kling
Colleen Curran Richard W. Kling
Title: Secretary Title: President
IDS LIFE INSURANCE COMPANY
Attest: /s/ Nancy Careaga By: /s/ William A. Stoltzmann
Nancy Careaga William A. Stoltzmann
Title: Assistant Secretary Title: Vice President
<PAGE>
ADDENDUM TO INVESTMENT ADVISORY AGREEMENT
The following provision is added to Section 6, Compensation to IDS, of the
Investment Advisory Agreement between IDS Life Insurance Company (IDS Life) and
IDS/American Express, Inc. (IDS) [now known as American Express Financial
Corporation] dated July 11, 1984. All other provisions of this Investment
Advisory Agreement remain in full force and effect.
6. Compensation to IDS. In addition to the fee for services provided under the
Investment Advisory Agreement described above, IDS Life Series Fund, Inc. for
the International Equity Portfolio shall pay IDS life a fee for each calendar
day of each year equal to the total of 1/365th (1/366th in each leap year) of
0.10% of the total net assets of the International Equity Portfolio for a total
of 0.35% of the net assets of the International Equity Portfolio. This
additional 0.10% fee shall be paid on a monthly basis in cash by IDS Life to IDS
within five (5) business days after the last day of each month.
(IN WITNESS WHEREOF, the parties have executed the Addendum as of the 1st day of
January, 1995.)
IDS LIFE INSURANCE COMPANY
Attest:/s/ Nancy Careaga By:/s/ Richard W. Kling
Nancy Careaga Richard W. Kling
Title: Assistant Secretary Title: President
AMERICAN EXPRESS FINANCIAL
CORPORATION
Attest:/s/ Colleen Curran By:/s/ William A. Stoltzmann
Colleen Curran William A. Stoltzmann
Title: Secretary Title: Vice President
IDS Life Insurance Company of New York Life and Disability
P.O. Box 5144 Income Insurance
Albany, New York 12205 Application
Insured Other Insured Rider (OIR)/2nd Insured Please provide both day and
evening telephone numbers Please provide both day and evening telephone numbers
Day (___) ____________ Evening (___) ____________ Day (___) ____________ Evening
(___) ____________ Best time to call ___________ Day ___________Evening Best
time to call ___________ Day ___________ Evening
<TABLE>
<CAPTION>
<S> <C>
Section A Insured and Owner Information
1. Insured: Is insured the owner ?____Yes ____No Other Insured Rider (OIR)_____ or 2nd Insured _____ ?
Is OIR/2nd Insured the owner ? _____ Yes _____No
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___ Mr. ___ Mrs. ___Miss ___ Ms. ___ Mr. ___ Mrs. ___Miss ___ Ms.
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Insured's name (first) (full midddle) (last) OIR/2nd Insured's name (first) (full midddle) (last)
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Home address (street) Home address (street)
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City, State, Zip City, State, Zip
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Social Security No. Social Security No.
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Birthdate Marital Status State of Birth ___ Male Birthdate Marital Status State of Birth
___ Male
___ Female ___ Female
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Citizenship
___ U.S. ___ Other _________________________________ ___ U.S. ___ Other _________________________________
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Occupation
Self-Employed Occupation Self-Employed
___ Yes ___ No ___ Yes ___ No
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Individual occ. Income Net worth Household incomeIndividual occ. Income Net worth
Household income
$ $ $ $ $ $
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Employer name Employer name
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Address (street) Address (street)
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City, State, Zip City, State, Zip
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2. Owner (Complete if owner is different from Insured/OIR/2nd Insured
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___ Mr. ___ Mrs. Owner's name (first) (full middle) (last) Birthdate
___ Male
___ Miss ___ Ms. ___ Female
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Home address (street) Address (street) (city) (state) (zip)
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Employer name Address (street) (city) (state) (zip)
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3. Ownerships
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___ Individual
___ Business: ___ Sole Proprietorship (03) ___ S Corporation (01) ___ Partnership (02)
___ C Corporation (01)
Type of Business Insurance: ___Buy/Sell ___ Business Debt Protection ___ Split Dollar
___ Key Person
___ Other ________________________________ ___ Executive Bonus ___ Deferred Compensation
(nongovernmental)
<PAGE>
___ Trust: ___ Revocable ___ Irrevocable Name of Trust
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Date of Trust ________________ Trustee taxpayer identification number
- -----------------------------------------------
Name and address of Trustee
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___ Other
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Section B Life Insurance
1. Life Insurance Plan
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Insured Amount $ OIR Amount $
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(You must select either Option 1 or Option 2 for theseplans)
___ Life Protection Plus ___ Death Benefit Option 1: Initial death benefit is insured
amount
___ Variable Universal Life II ___ Death Benefit Option 2: Initial death benefit is insured
amount plus acccumulated cash value
___ Variable Universal Life II 350 Cost of insurance is greater than Option 1.
___ Survivorship Variable Life (V2D)
___ 10-Year Term
___ Whole Life
___ Other
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Variable Universal Life and Survivorship Variable Life Allocations
(complete financial suitability statement on signature page).
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Premium allocation: (premium amount to be directed to specific investment options within policy)
Monthly deductions: (investment options within the policy from which the cost of insurance will be deducted)
Owners tax bracket _____% (required for VUL & V2D policies)
Investment Premium Monthly Investment Premium Monthly Investment Premium Monthly
options allocation deductions options allocation deductions options
allocation deductions
Fixed % % Equity % % 2004-Trust % %
Income % % Money Market % % Other % %
Managed % % Gov't securities % % Other % %
Int'l Equity % % 100% 100%
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2. Life Insurance Riders
- -----------------------------------------------------------------------------------------------------------------------------------
___ Other Insured Rider (OIR). Complete OIR in Section A and OIR Amount $ and Beneficiary in Section B
___ Waiver of Premium or Waiver of Monthly Deduction
___ Accidental Death Benefit of $ _________ ___ Four-Year Term of $
__________ (V2D Only) ___ Policy Split Option (V2D Only)
___ Other ____________________________________________________________________________________
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___ Children's Insurance (CIR) _______ Units
___ Family Insurance (FIR) ________ Units
Children's Insurance Rider and Family Insurance Rider Information:
A. ___Mr. ___Mrs. Spouse information (first, middle and last name) Birthdate State of birth
Height Weight
___Miss ___Ms. ___________________________________________________________________________________________________________
B. Name(s) of children to be covered by rider(must be under age 19 and unmarried) Physical/mental
abnormalities at birth?
Name (first) (full middle) (last) Birthdate Sex (If yes, explain here)
_____________________________________________________________________________________
___Yes ___No
_____________________________________________________________________________________
___Yes ___No
_____________________________________________________________________________________
___Yes ___No C. Has anyone listed above received treatment for any disease,
physical or mental condition in the past five years?
___ Yes ___ No
D. Is this insurance intended to replace any existing insurance and/or annuity ___ Yes ___ No
E. If yes to C or D above, explain here
- ----------------------------------------------------------------------------------------------------
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F. Are there any children under the age of 19 and unmarried not listed above ___ Yes ___ No
If yes, list name, birthdate and reason for exclusion
- -----------------------------------------------------------------------------------------
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<PAGE>
Section B Life Insurance (continued)
3. Life Insurance Premiums
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Amount of scheduled/ Amount paid with Lump-sum amount to be Premium Payment Frequency
annual premiums application paid on delivery of policy ___
Monthly ___ Quarterly
$_______________ $ _______________ $ _______________ ___ Semiannually ___ Annually
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Method of Payment: ___ New Bank Authorization ___ Add to Existing Bank Authorization account no.
- -----------------------------------------
(BA can be set up for monthly or quarterly frequencies only. Complete attached BA form)
___ Direct Billing ___ Other
- ---------------------------------------------------------------------------
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4. Life Insurance Beneficiary (for Survivorship Variable Life. Complete b. Below)
- -----------------------------------------------------------------------------------------------------------------------------------
a. Option A. Beneficiary is: Insured's designated spouse, if living, otherwise the beneficiaries are the living lawful children
of the insured and they will receive
equal shares of the proceeds.
Option B. Beneficiary is: Insured's designated spouse, if living, otherwise, the beneficiaries are the living lawful children
of the insured and they will receive
equal shares of the proceeds; provided, however, that if a child
of the Insured has died before the insured, the share which the child would have
received if he/she survived the Insured will be paid to his/her
living lawful children in equal shares.
Option C. Other designation
Insured OIR
___ Option A ___ Option B ___ Option C _____ Option A ___ Option B ___ Option C
For Option A or B: For Option A or B:
Insured's spouse's full name ____________________________ OIR's spouse's full name ____________________________
Option C: Other designation ____________________________ Option C: Other designation __________________________
=================================================== =================================================
Relationship to Insured ________________________________ Relationship to OIR _________________________________
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b. Survivorship Variable Life Beneficiary designation
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====================================================================================================================================
Relationship to Insureds
- ----------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
5. Juvenile Insurance
COMPLETE IF INSURED IS UNDER AGE 15
Did the representative see this child? Is there similiar insurance in
force or applied for on all brothers and sisters?
___ Yes ___ No ___ Yes ___ No If not why?
- -------------------------------------------
Amount of life insurance already in force on the person responsible for child's primary support $
- ------------------------------------------
X ________________________________________________ X _________________________________ __________________
Signature of Parent or Legal Guardian Signature of Witness Date
<PAGE>
Section C Disability Income and Business Expense Protection Insurance
1. Disability Income Insurance Plan
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Monthly Benefit Insured's Occupation Class Waiting Period
$ ________________________ ___ 1A ___ 2A ___ 3A ___ 30 day ___ 60 days ___ 90 days
___ 4A ___ 5A ___ 180 days ___ 365 days
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Duration of Benefit Premium Pattern
___ 1 yr ___ 3 yrs ___ 5 yrs ___ to age 65 ___ Level ___
Step Rate
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Disability Provision Occupation Classes 1A, 2A & 3 A: ___ 2 Years Occupation Protection
Occupation Classes 4A & 5A: ___ 5 Years Occupation Protection ___ Gradual Recovery Benefits
____ Gradual Recovery Benefits and Occupation Protection Option
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2. Disability Underwriting Information
A. Complete description of job duties. Years of service __________ Number of hours worked per week __________
- -----------------------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
If self-employed: 1.Date business began ____________________ Number of employees ____________________
2. What % of duties are supervisory? ____________________
B. Any contemplated change in occupation? ___Yes ___ No If yes, explain
- -------------------------------------------------------
C. Previous occupation if changed in the past five years
- ---------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
D. Amount of unearned income $ _______________ Source
- ----------------------------------------------------------------------------------
E. Is the insured a member of a State, Public, or Federal Retirement System? ___ Yes ___ No
If yes, which one? _____________________________________________________________________
F. Does teh Insured have any Disability Income Insurance through his/her employer?
___ Yes ___ No If yes, complete questions a - c below:
a. Short-term at $ __________ per month for __________ months and __________ day waiting period
b. Long-term at $ __________ per month for __________ years and __________ day waiting period
c. Is the group disability integrated with Social Security?_____ Yes _____ No
G. Will the insured's employer be paying the premiums for the IDS Life of New York Disability Insurance? ___ Yes ___ No
H. Is the Insured eligible for benefits from a required State Cash Sickness disability program? ___ Yes ___ No
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<PAGE>
Section C Disability Income and Business Expense Protection Insurance (continued)
- -----------------------------------------------------------------------------------------------------------------------------------
3. Disability Income Insurance Riders
___ Other
- ----------------------------------------------------------------------------------------------------------------------
___ Social Benefits Substitute Rider $ __________ per month with waiting period of __________ days
___ Supplemental DI $ __________ per month for __________ months and a __________ day waiting period
___ Cost-of-Living Maximum __________ % (classes 2A, 3A, 4A and 5A)
___ Future Purchase Option $ __________ Pool Amount
___ Hospital Indemnity $ __________ per month
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4. Disability Income Insurance Premiums
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Annual premiums Amount paid with Amount to be paid on Premium Payment Frequency
application delivery of policy ___ Monthly ___ Quarterly
$ _____________ $ _____________ $ _____________ ___ Semiannually ___
Annually
- -----------------------------------------------------------------------------------------------------------------------------------
Method of Payment: ___ New Bank Authorization ___ Add to Existing Bank Authorization account no.
- ------------------------------------
(BA can be set up for monthly or quarterly frequencies
only. Complete attached BA form.)
___ Direct Billing ___ Other
- ---------------------------------------------------------------------------
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Business Expense Protection Insurance
- -----------------------------------------------------------------------------------------------------------------------------------
1. Business Expense Protection Insurance Plan
(Cannot be applied for without personal Disability Income Protection in
force or applied for.)
Complete Disability Underwriting Information Section
- -----------------------------------------------------------------------------------------------------------------------------------
Monthly Benefit Insured's Occupation Class Waiting Period Benefit Pattern
$ ____________________ ___ 3A ___ 4A ___ 5A ___ 30 days ___ 60 days ___ Level
Submit From 38591 ___ 90 days ___ Increasing
(Available on DI Proposal System)
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2. Business Expense Protection Insurance Premiums
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Annual premiums Amount paid with Amount to be paid on Premium Payment Frequency
application delivery of policy ___ Monthly ___ Quarterly
$ _____________ $ _____________ $ _____________ ___ Semiannually ___
Annually
- -----------------------------------------------------------------------------------------------------------------------------------
Method of Payment: ___ New Bank Authorization ___ Add to Existing Bank Authorization account no.
- ------------------------------------
(BA can be set up for monthly or quarterly frequencies
only. Complete attached BA form.)
___ Direct Billing ___ Other
- ---------------------------------------------------------------------------
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<PAGE>
Section D Medical History
- -----------------------------------------------------------------------------------------------------------------------------------
Insured Other Insured Rider (OIR)/2nd Insured:
Doctor or Clinic Doctor or Clinic
1.___________________________________________ 1.___________________________________________
- -------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Patient number Phone number Patient number Phone number
- ---------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Address City State Zip Address City State Zip
- ---------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
Date last seen Reason last seen Date last seen Reason last seen
- ----------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------
2. Weight _______________ Weight _______________ 2. Weight _______________ Weight _______________
3. Have you ever had or been told you had, consulted with, been tested 3. Have you ever had or been told you had,
consulted with, been tested
for (except for an HIV test) or treated by a doctor or medical practitioner for (except for an HIV test) or
treated by a doctor or medical practitioner
for the following: (circle disorder for "YES" answers) for the following: (circle disorder for
"YES" answers)
A. Cancer or tumor, unusual fatigue, disorder of the muscles, bones A. Cancer or tumor, unusual fatigue,
disorder of the muscles, bones
neck, back, joints, skin, liver, kidneys urinary tract, digestive or neck, back, joints, skin, liver,
kidneys urinary tract, digestive or
reproductive system? ___ Yes ___ No reproductive system? ___ Yes ___ No
Date of last consultation, test or treatment _______________________ Date of last consultation, test or treatment
- -----------------------
B. Chest pain, disorder of the heart, circulation, high blood pressure B. Chest pain, disorder of the heart,
circulation, high blood pressure
lung or breathing disorder, diabetes, epilepsy, stroke, or loss of lung or breathing disorder, diabetes,
epilepsy, stroke, or loss of
consciousness, paralysis, brain or nervous system? consciousness, paralysis, brain or
nervous system?
___ Yes ___ No ___ Yes ___ No
Date of last consultation, test or treatment __________________ Date of last consultation, test or
treatment __________________
C. Mental Illness, depression, emotional disorder, alcohol or drug/ C. Mental Illness, depression, emotional
disorder, alcohol or drug/
substance abuse? ___ Yes ___ No substance abuse? ___ Yes ___ No
Date of last consultation, test or treatment __________________ Date of last consultation, test or
treatment __________________
4. Have you ever been diagnosed or received treatment by a member of the 4. Have you ever been diagnosed or
received treatment by a member of the
medical profession for AIDS (Acquired Immune Deficiency Syndrome) medical profession for AIDS (Acquired Immune
Deficiency Syndrome)
or ARC (AIDS-Related Complex?) ___ Yes ___ No or ARC (AIDS-Related Complex?) ___ Yes ___ No
Date of last consultation or treatment ________________ Date of last consultation or treatment
- ----------------
5. Within the past five years have you stayed overnight in a hospital or 5. Within the past five years have you
stayed overnight in a hospital or
gone to an emergency room for any illness, or injury, been to a medical gone to an emergency room for any
illness, or injury, been to a medical
clinic, therapist or doctor, or presently have a physical impairment or clinic, therapist or doctor, or
presently have a physical impairment or
illness not listed above? ___ Yes ___ No illness not listed above? ___ Yes
___ No
Date of last consultation or treatment ____________________ Date of last consultation or treatment
- --------------------
If yes, give reason: __________________________________________ If yes, give reason:
- ------------------------------------------
----------------------------------------------------------
- ----------------------------------------------------------
----------------------------------------------------------
- ----------------------------------------------------------
6. Have you smoked cigarettes in the past 12 months? 6. Have you smoked cigarettes in the past
12 months?
___ Yes ___ No ___ Yes ___ No
Have you ever smoked cigarettes ___ Yes ___ No Have you ever smoked cigarettes___ Yes ___ No
Date ceased smoking cigarettes _______________________________ Date ceased smoking cigarettes
- -------------------------------
Have you used tobacco in any other form? ___ Yes ___ No Have you used tobacco in any other form? ___ Yes
___ No
If yes, what is used? _________________________________________ If yes, what is used?
- ----------------------------------------
What amount? _____________________________________________ What amount?
- ---------------------------------------------
Date last used? ____________________________________________ Date last used?
- --------------------------------------------
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<PAGE>
Section E Underwriting Information
- -----------------------------------------------------------------------------------------------------------------------------------
Insured: Other Insured Rider (OIR)/2nd Insured
1.Do you have any current plans to travel outside of the United States 1.Do you have any current plans to travel outside
of the United States
___ Yes ___ No ___ Yes ___ No
If yes, where ___________________________________________ If yes, where
___________________________________________ For how long ________________
Reason _______________ For how long ________________ Reason _______________
====================================================== ======================================================
2. During the past five years have you: 2. During the past five years have you:
A. Flown, or do you contemplate flying as a pilot, student pilot or crew A. Flown, or do you contemplate flying
as a pilot, student pilot or crew
member? ___ Yes ___ No member? ___ Yes ___ No
B. Participated in or do you contemplate participating in motorcycle riding B. Participated in or do you contemplate
participating in motorcycle riding
racing (automobile, snowmobile, motorcycle, boat), skin/scuba diving racing (automobile, snowmobile,
motorcycle, boat), skin/scuba diving
skydiving, hang-gliding or other similar activities? Skydiving, hang-gliding or
other similar activities?
___ Yes ___ No ___ Yes ___ No
If yes, what activity? _________________________________________ If yes, what activity?
- -----------------------------------------
- -----------------------------------------------------------------------------------------------------------------------------------
Insured
3. Have you ever had an application for insurance declined, postponed or modified in any way? ___ Yes ___ No
If yes, provide date _________________________ Company name ________________________________________________
Reason ________________________________________________________________________________________________
4. Will this insurance replace any existing insurance or annuity policies? ___ Yes ___ No
If replacing an
existing IDS
Life of NY
policy, the
cash value
should be ___
rolled to the
new IDS Life of
NY policy ___
returned to the
client
5. List any annuities or life or disability income insurance currently in force or applied for:
Plan Policy Ins. Amount/ D.I.yrs ADB Will this
Company name type number mo. Income payable amount be replaced?*
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- -----------------------------------------------------------------------------------------------------------------------------------
* If the insurance applied for will replace any existing insurance, Submit
Replacement form(s) if required.
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Insured Rider (OIR)/2nd Insured
3. Have you ever had an application for insurance declined, postponed or modified in any way? ___ Yes ___ No
If yes, provide date _________________________ Company name ________________________________________________
Reason ________________________________________________________________________________________________
4. Will this insurance replace any existing insurance or annuity policies? ___ Yes ___ No
If replacing an
existing IDS
Life of NY
policy, the
cash value
should be ___
rolled to the
new IDS Life of
NY policy ___
returned to the
client
5. List any annuities or life or disability income insurance currently in force or applied for:
Plan Policy Ins. Amount/ D.I.yrs ADB Will this
Company name type number mo. Income payable amount be replaced?*
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- ------------------------------------------------------------------------------------------------------------------------------------
* If the insurance applied for will replace any existing insurance, Submit
Replacement form(s) if required.
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<PAGE>
IDS Life Insurance Company of New York Life and Disability
P.O. Box 5144 Income Insurance
Albany, New York 12205 Application
Agreement and Signature
- -------------------------------------------------------------------------------------------------------------
Agreement
By signing this application, you acknowledge all of the following terms and
conditions.
Adequate information. You have received the IDS Life of New York's Client
Information Practices, and you have read and understood it.
When coverage begins. You agree that an Insured for life or disability insurance
will be covered prior to policy delivery only when all of the following
requirements have been met:
The owner has paid the full first premium, according to the mode of premium
payment selected, for all insurance applied for in this application (any check
or draft for that payment must be honored by the bank); and
The Insured has submitted the initial medical examination requirements and other
information required by the company's written underwriting rules; and
The Insured is insurable on the Effective Date, as defined below, under the
company's underwriting rules, for the plan and amount of coverage at the rate
applied for with no modification. "Effective Date" as used herein means the
later of: (a)the date of this application; or (b) the completion of the initial
medical examination requirements and other information required by the company's
written underwriting rules for the Insured's age and amount of insurance applied
for
In cases where the Insured is not insurable for the plan or the amount or at the
rate applied for, coverage begins if and when the company includes that person
under a policy accepted by the owner.
For disability coverage, all disability policies specified to be discontinued in
this application must also be discontinued before coverage will begin. (This
limitation is subject to the incontestability provision in the policy.)
Amount of Life Insurance coverage. Before the policies are delivered, each Insured will be covered for the lesser of: 1) the total
amount requested for that Insured; or 2) $150,000. Coverage requested on this and other IDS Life of New York applications will be
totaled and subject o this $150,000 maximum. Inforce coverage is not subject to this limitation.
Company's responsibilities. You understand that:
Only the officers of the company have the authority to decide on insurability
and risk classification and to bind the company to insure a proposed Insured.
The officers of the company are the President, Vice President Secretary and
Assistant Secretary;
If a policy does not go into effect, the company's sole liability will be to
refund any premium paid, plus interest if required by law;
No change in or waiver of anything in this application or alteration of an
insurance policy is binding unless it is in writing and signed by an officer of
the company; and
By accepting a policy, the owner ratifies any changes entered at any time on the
Home Office Endorsement form attached to the policy. However, the owner must
sign a separate written document for any change in type of plan, amount,
benefits or Insured's risk classification.
Any insurance provided by this agreement will be subject to the conditions and
terms of the policy applied for.
Release of Information. You understand and agree that the company will use and
release information about you as described in the attached IDS Life of New
York's Client Information Practices. You may inform us not to use information
for certain marketing purposes described in IDS Life of New York's Client
Information Practices.
Qualified Plans only. You certify that the plan under Ownership of the insurance
application is qualified under Section 401 (a) of the United States Internal
Revenue Code. This policy will be issued based on representations by you that
the Plan is qualified.
Declaration
You declare that each of the answers made in this application is true and
complete to the best of your knowledge and belief and will be a basis for any
policy issued. You also acknowledge that you have received a copy of this
agreement and receipt for any premium paid with this application.
Certification
You certify, under the penalties of perjury as required by Form W-9 of the
Internal Revenue Service, that the names, addresses and Social Security
(taxpayer ID) numbers provided in this application are true, correct and
complete.
Client Copy
<PAGE>
Financial Suitability Statement
Variable Life/Survivorship Variable Life. If you have applied for this type of
insurance, check each of the following to acknowledge that you have received and
read them: ___ Adequate information. You have received the current prospectus
for the policy applied for and any funds involved.
___ Illustrations. You acknowledge that illustrations of benefits, including
death benefits, policy values and cash surrender values are available upon
request.
___ Purpose. You agree that this variable type of insurance is in accord with
your insurance and financial objectives. ___ You understand that there can
be no assurance that such objectives will be achieved. ___ Your risk
tolerance for investment is ___ Low ___ Medium ___ High ___ Your specific
long-term goals and objectives are ___ Protection ___ Tax Deferral ___
Capital Appreciation
___Stability of Principal
___ Variables values. The amount of Death Benefit, duration of coverage and
Policy Values can both increase and decrease,
however, the Death Benefit will
never be less than any Guaranteed Minimum Death Benefit.
___ Fees and charges. The fees and charges (including possible surrender
charges) have been explained to you and are also explained in detail in the
policy.
Life Protection Plus/ Universal Life Insurance. If you have applied for this type
of insurance, you acknowledge that you have been
informed that (1) the company
may periodically change the current interest rate being credited on cash
values, and that (2) that surrender charges may apply in certain circumstances.
Authorization to obtain Information - IDS Life Insurance Company of New York
You authorize any physician, medical practitioner, hospital, other medical
facility, the Medical Information Bureau, employer, and consumer reporting
agency having medical and other information about you and your minor children to give that information to the company or its
reinsurer. You understand
that the company will use this information to determine eligibility for insurance and benefits. You acknowledge that your
medical records, including any
alcohol or drug abuse information, may be protected by the Federal Alcohol
and Drug Abuse Regulation 42 CFR Part 2. You authorize the company to
obtain investigative consumer reports on you and your minor children. You
understand that you
have the right to request
a personal interview if an investigative consumer report is obtained. You
agree that a photographic copy of this authorization will be a valid as
the original. You agree that this authorization will be valid for two and
one-half years from the date shown below. You acknowledge that you have
received a copy of this authorization.
- --------------------------------------------------------------------------------
-Disability Income Insurance Only-
Any person who knowingly and with intent to defraud any insurance company
or other person files an application for insurance or statement of claim
containing any materially false information, or conceals for the purpose of misleading, information concerning any fact
material thereto, commits a
fraudulent insurance act, which is a crime, and shall also be subject to a
civil penalty not to exceed five thousand dollars and the stated value of the
claim for each such violation.
- --------------------------------------------------------------------------------
Signatures (Insureds under age 15 need not sign)
Insured (base plan) X ________________________________________ OIR/2nd Insured X
- --------------------------------------------------
FIR Spouse X ______________________________________________ OIR Insured X
- -----------------------------------------------------
Owner's signature (omit if owner already signed as an insured) X
- ----------------------------------------------------------------------------
Signed on (date) _____ -_____ - _____, (state) _______________________
_________ at (city)
- -------------------------------------
Receipt
- --------------------------------------------------------------------------------
All checks must be completed in full and be made payable to the company (not to the representative)
Received from X _______________________________________ the sum of $ ________________________________ with this
application.
___ No money paid with this application
Representative's Report
- -----------------------------------------------------------------------------------------------------------------------------------
Is insured related to representative? ___ Yes ___ No If yes, give relationship
- ------------------------------------------------------------
You certify that you personally requested the information in this application
and witnessed its signing and received any money that was paid. You also certify
that you truly and accurately recorded on the application the information
supplied by the applicant. You are not aware of anything detrimental to the risk
that is not recorded in this application.
To the best of your knowledge and belief the information provided on Page 7 of
this application regarding replacement of existing
insurance and annuities is true
and accurate.
Representative's Signature X _____________________________________________ No. _____________ Area Office
- ------------------------
Compensation __________% Phone ( ) __________________________________ Team ID __________________________________
Representative's name (print) _________________________________________________________
Joint Representative's signature X _________________________________________ No. _____________ Area Office
- -------------------------
Compensation __________% Phone ( ) __________________________________ Team ID __________________________________
Compensation percentages must equal 100%
<PAGE>
IDS Life Insurance Company of New York Life and Disability
P.O. Box 5144 Income Insurance
Albany, New York 12205 Application
Agreement and Signature
- -------------------------------------------------------------------------------------------------------------
Agreement
By signing this application, you acknowledge all of the following terms and
conditions.
Adequate information. You have received the IDS Life of New York's Client
Information Practices, and you have read and understood it.
When coverage begins. You agree that an Insured for life or disability insurance
will be covered prior to policy delivery only when all of the following
requirements have been met:
The owner has paid the full first premium, according to the mode of premium
payment selected, for all insurance applied for in this application (any check
or draft for that payment must be honored by the bank); and
The Insured has submitted the initial medical examination requirements and other
information required by the company's written underwriting rules; and
The Insured is insurable on the Effective Date, as defined below, under the
company's underwriting rules, for the plan and amount of coverage at the rate
applied for with no modification. "Effective Date" as used herein means the
later of: ((a)the date of this application; or (b) the completion of the initial
medical examination requirements and other information required by the company's
written underwriting rules for the Insured's age and amount of insurance applied
for
In cases where the Insured is not insurable for the plan or the amount or at the
rate applied for, coverage begins if and when the company includes that person
under a policy accepted by the owner.
For disability coverage, all disability policies specified to be discontinued in
this application must also be discontinued before coverage will begin. (This
limitation is subject to the incontestability provision in the policy.)
Amount of Life Insurance coverage. Before the policies are delivered, each
Insured will be covered for the lesser of: 1) the total amount requested for
that Insured; or 2) $150,000. Coverage requested on this and other IDS Life of
New York applications will be totaled and subject o this $150,000 maximum.
Inforce coverage is not subject to this limitation.
Company's responsibilities. You understand that:
Only the officers of the company have the authority to decide on insurability
and risk classification and to bind the company to insure a proposed Insured.
The officers of the company are the President, Vice President Secretary and
Assistant Secretary;
If a policy does not go into effect, the company's sole liability will be to
refund any premium paid, plus interest if required by law;
No change in or waiver of anything in this application or alteration of an
insurance policy is binding unless it is in writing and signed by an officer of
the company; and
By accepting a policy, the owner ratifies any changes entered at any time on the
Home Office Endorsement form attached to the policy. However, the owner must
sign a separate written document for any change in type of plan, amount,
benefits or Insured's risk classification.
Any insurance provided by this agreement will be subject to the conditions and
terms of the policy applied for.
Release of Information. You understand and agree that the company will use and
release information about you as described in the attached IDS Life of New
York's Client Information Practices. You may inform us not to use information
for certain marketing purposes described in IDS Life of New York's Client
Information Practices.
Qualified Plans only. You certify that the plan under Ownership of the insurance
application is qualified under Section 401 (a) of the United States Internal
Revenue Code. This policy will be issued based on representations by you that
the Plan is qualified.
Declaration
You declare that each of the answers made in this application is true and
complete to the best of your knowledge and belief and will be a basis for any
policy issued. You also acknowledge that you have received a copy of this
agreement and receipt for any premium paid with this application.
Certification
You certify, under the penalties of perjury as required by Form W-9 of the
Internal Revenue Service, that the names, addresses and Social Security
(taxpayer ID) numbers provided in this application are true, correct and
complete.
Home Office Copy
<PAGE>
Financial Suitability Statement
Variable Life/Survivorship Variable Life. If you have applied for this type of
insurance, check each of the following to acknowledge that you have received and
read them: ___ Adequate information. You have received the current prospectus
for the policy applied for and any funds involved.
___ Illustrations. You acknowledge that illustrations of benefits, including
death benefits, policy values and cash surrender values are available upon
request.
___ Purpose. You agree that this variable type of insurance is in accord with
your insurance and financial objectives. ___ You understand that there can
be no assurance that such objectives will be achieved. ___ Your risk
tolerance for investment is ___ Low ___ Medium ___ High ___ Your specific
long-term goals and objectives are ___ Protection ___ Tax Deferral ___
Capital Appreciation
___Stability of Principal
___ Variables values. The amount of Death Benefit, duration of coverage and Policy Values can both increase and decrease,
however, the Death Benefit will
never be less than any Guaranteed Minimum Death Benefit.
___ Fees and charges. The fees and charges (including possible surrender
charges) have been explained to you and are also explained in detail in the
policy.
Life Protection Plus/ Universal Life Insurance. If you have applied for this type of insurance, you acknowledge that you have been
informed that (1) the company
may periodically change the current interest rate being credited on cash
values, and that (2) that surrender charges may apply in certain circumstances.
Authorization to obtain Information - IDS Life Insurance Company of New York
You authorize any physician, medical practitioner, hospital, other medical
facility, the Medical Information Bureau, employer, and consumer reporting
agency having medical and other information about you and your minor children to
give that information to the company or its reinsurer. You understand that the
company will use this information to determine eligibility for insurance and
benefits. You acknowledge that your medical records, including any alcohol or
drug abuse information, may be protected by the Federal Alcohol and Drug Abuse
Regulation 42 CFR Part 2. You authorize the company to obtain investigative
consumer reports on you and your minor children. You understand that you have
the right to request a personal interview if an investigative consumer report is
obtained. You agree that a photographic copy of this authorization will be a
valid as the original. You agree that this authorization will be valid for two
and one-half years from the date shown below. You acknowledge that you have
received a copy of this authorization.
- --------------------------------------------------------------------------------
- -Disability Income Insurance Only-
Any person who knowingly and with intent to defraud any insurance company
or other person files an application for insurance or statement of claim
containing any materially false information, or conceals for the purpose of misleading, information concerning any fact
material thereto, commits a
fraudulent insurance act, which is a crime, and shall also be subject to a
civil penalty not to exceed five thousand dollars and the stated value of the
claim for each such violation.
- -------------------------------------------------------------------------------
Signatures (Insureds under age 15 need not sign)
Insured (base plan) X ________________________________________ OIR/2nd Insured X
- --------------------------------------------------
FIR Spouse X ______________________________________________ OIR Insured X
- -----------------------------------------------------
Owner's signature (omit if owner already signed as an insured) X
- ----------------------------------------------------------------------------
Signed on (date) _____ -_____ - _____, (state) ________________________________ at (city)
- -------------------------------------
Receipt
- --------------------------------------------------------------------------------
All checks must be completed in full and be made payable to the company (not to the representative)
Received from X _______________________________________ the sum of $ ________________________________ with this
application.
___ No money paid with this application
Representative's Report
- --------------------------------------------------------------------------------
Is insured related to representative? ___ Yes ___ No If yes, give relationship
- ------------------------------------------------------------
You certify that you personally requested the information in this application
and witnessed its signing and received any money that was paid. You also certify
that you truly and accurately recorded on the application the information
supplied by the applicant. You are not aware of anything detrimental to the risk
that is not recorded in this application.
To the best of your knowledge and belief the information provided on Page 7 of
this application regarding replacement of existing
insurance and annuities is true
and accurate.
Representative's Signature X _____________________________________________ No. _____________ Area Office
- ------------------------
Compensation __________% Phone ( ) __________________________________ Team ID __________________________________
Representative's name (print) _________________________________________________________
Joint Representative's signature X _________________________________________ No. _____________ Area Office
- -------------------------
Compensation __________% Phone ( ) __________________________________ Team ID __________________________________
Compensation percentages must equal 100%
<PAGE>
IDS Life Insurance Company of New York Life and Disability
P.O. Box 5144 Income Insurance
Albany, New York 12205 Application
IDS Life of New York's Client Information Practices "You Feel Your Privacy Is Important . . . So Do We."
- -------------------------------------------------------------------------------------------------------------
ThankYou for Choosing IDS Life of NewYork...
Now that you've completed an application for insurance with us, you are probably
wondering why we've asked so many questions and how we intend to use the
information you've provided.
Why We Collect Information
- -------------------------------------------------------------------------------------------------------------
Everyone applies for insurance coverage at "standard" premium rates, which are
set to cover the costs of insuring persons in good health who have nonhazardous
occupations and recreations.
We gather information about all applicants, so that we can decide whether they
are eligible for the insurance requested at our "standard" rates or if they must
pay more or cannot be insured by us at all.
If we cannot provide the coverage which you have requested or must charge you
more than our "standard" rate, we will notify you of our decision in writing and
explain our reasons.
What Types of Information We May Collect
Besides the information in your application, we may also gather other
information about you and your family members concerning. lifestyle, character,
general reputation, mental and physical health history, habits, use of alcohol
and drugs, driving record, past and present employment and job duties, finances,
other insurance coverage and participation in hazardous activities.
Where and How We Collect Information
By signing your application, you have given us written authorization to gather
information in person, by phone or mail from consumer reporting agencies, the
Medical Information Bureau (MIB), medical practitioners, institutions and
organizations, public and financial record sources, other insurance companies
and agents, friends, neighbors and associates, for the purpose of underwriting
this insurance application or investigating a claim for insurance benefits.
Consumer Reporting Agencies
An investigative consumer report may be requested to collect information to help
us determine your insurability. This report would include information on your
lifestyle, character, general reputation and personal characteristics such as
health, occupation and finances. The consumer reporting agency would gather this
information through interviews with you, your family, business associates,
friends and financial institutions.
If we order an investigative consumer report about you, you have the right to
request an interview by indicating that request in the Notes Section on the
front of the application. The agency may keep a copy of the report and disclose
it to others having a legitimate need for such information. Upon request, the
agency will provide you with a copy of the report and explain their retention
and release practices.
Medical Information Bureau, Inc. (MIB)
The Medical Information Bureau, Inc. is a nonprofit organization which operates as an information exchange for its members. IDS
Life Insurance Company of New York is a member of MIB.
We make reports to the MIB on factors affecting your insurability. We will not
inform MIB of our decision on your application. If you subsequently apply to
another Bureau member company for life or health insurance or submit a claim for
benefits, MIB will, upon request, supply that company with information in its
file. IDS Life Insurance Company of New York or its reinsurers may also release
information in its files to other life insurance companies to whom you may apply
for life or health insurance, or to whom a claim for benefits may be submitted.
Client Copy
<PAGE>
Upon written request, the MIB will arrange for a disclosure to you of any
information it may have on you on file (medical information may be disclosed to
a physician designated by you rather than to you directly). If you feel a
consumer reporting agency or the MIB has incorrect information about you in its
files, you can contact the consumer reporting agency or the MIB to seek a
correction in accordance with the Fair Credit Reporting Act procedures.
The Medical Information Bureau's (MIB) address and phone number are:
MIB, Inc.
Post Office Box 105
Essex Station
Boston, Massachusetts 02112
(617) 426-3660
How We May Use the Information Collected
We use the information collected in connection with your policy primarily to
determine whether you are eligible for IDS Life Insurance Company of New York
coverage. We and other companies owned by American Express Financial Corporation
will also use the information to give you service for your insurance policy and
other accounts you may have with us. However, medical information and
investigative consumer reports are used only in servicing the policy or account
for which they were obtained. Additionally, our representative will use the
information to advise and inform you about other products and services.
We may provide information collected in connection with your policy to the
following organizations to enable them to perform business functions for IDS
Life Insurance Company of New York:
The Medical Information Bureau (MIB). We will provide the MIB limited information as described above.
Insurers, organizations and persons which perform business, professional or
insurance functions for us.
Persons or organizations doing research studies, as long as the information does
not identify you.
We may use information, excluding medical information and consumer reports, to
send you literature about other products and services available. We may also
provide limited information, including your name, address and telephone number
to a company outside of IDS Life Insurance Company of New York so it can send
you information about a product or service that we believe could be appropriate
for you. If you object to one or both of these uses of information, please
indicate this in the Notes Section of the front of the application.
What Information We May Release to Others
We treat all information about you confidentially. Except as described above, we
will not release information about you to others unless you or a representative
whom you have authorized in writing have consented or asked us to do so or we
are required by law or other regulatory authority. For example, we may be
required to release information about you to law enforcement or government
agencies, other insurers, agents or organizations with whom we become involved
in the course of detecting, prosecuting or preventing an insurance fraud or
misrepresentation.
How to Review or Correct the Information We Gathered
Upon your written request, we will provide you with a summary or copy of the
information we have gathered about you. At our option, we may release medical
information directly to you or to a physician of your choice. We will not send
you information collected in expectation of or in connection with any claim,
civil or criminal proceeding.
If you feel any information in our files is incorrect or incomplete, we will
review it. If we agree with you, we will make any necessary corrections, and
upon your request, inform anyone who received such information from us in the
past two years. If we do not agree, you may give us a brief statement which we
will include with any future disclosures and also send to anyone who received
information from us in the past two years.
Our address is:
IDS Life Insurance Company of New York
P.O. Box 5144
Albany, New York 12205
39430C (6/96)
Client Copy
</TABLE>
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 IDS Life Insurance
Company of New York on behalf of the below listed registrants 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:
<TABLE>
<CAPTION>
1933 Act 1940 Act
Reg. Number Reg. Number
<S> <C> <C>
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 Flexible Portfolio
Annuity Account
IDS Life of New York Flexible Portfolio
Annuity
IDS Life of New York Account 8
Flexible Premium Variable Life Insurance
Policy 33-15290 811-5213
IDS Life of New York Account SBS
Symphony Annuity 33-45776 811-6560
IDS Life of New York Account 7
Single Premium Variable Life Insurance
Policy 33-10334 811-4913
</TABLE>
hereby constitutes and appoints William A. Stoltzmann, Mary Ellyn Minenko,
Eileen J. Newhouse, Sherilyn K. Beck, Colin Lancaster 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>
Dated the 26th day of March, 1997.
/s/ John C. Boeder /s/ Thomas V. Nicolosi
John C. Boeder Thomas V. Nicolosi
Director Director
/s/ Roger C. Corea /s/ Stephen P. Norman
Roger C. Corea Stephen P. Norman
Director Director
/s/ Charles A. Cuccinello /s/ Carl N. Platou
Charles A. Cuccinello Carl N. Platou
Director Director
/s/ Darlene S. Farron /s/ Gordon H. Ritz
Darlene S. Farron Gordon H. Ritz
Treasurer Director
/s/ Robert A. Hatton /s/ Richard M. Starr
Robert A. Hatton Richard M. Starr
Director, Vice President Director
and Chief Operating Officer
/s/ Richard W. Kling /s/ Michael R. Woodward
Richard W. Kling Michael R. Woodward
Director, Chairman of the Director
Board and President
/s/ Edward Landes
Edward Landes
Director
