SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Amendment No. 6
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
<PAGE>
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.
Policy 1 - Flexible Premium Variable Life Insurance Policy
Policy 2 - Flexible Premium Variable Survivorship Life
Insurance Policy
Policy 3 - Flexible Premium Variable Life Insurance Policy
(VUL-3 NY)
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., 200 AXP Financial Center,
Minneapolis, MN 55474, 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.
<PAGE>
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.
Richard Thoresen and Elizabeth Thoresen vs. AEFC, American Partners
Life Insurance Company, American Enterprise Life Insurance Company,
American Centurion Life Assurance Company, IDS Life Insurance Company
and IDS Life Insurance Company of New York, was commenced in Minnesota
State Court in October 1998. The action was brought by individuals who
purchased an annuity in a qualified plan. The plaintiffs allege that
the sale of annuities in tax-deferred contributory retirement
investment plans (e.g. IRA's) is never appropriate. The plaintiffs
purport to represent a class consisting of all persons who made
similar purchases. The plaintiffs seek damages in an unspecified
amount.
IDS Life of New York is included as a party to a preliminary
settlement of all three class action lawsuits. We believe this
approach will put these cases behind us and provide a fair outcome for
our clients. Our decision to settle does not include any admission of
wrongdoing. We do not anticipate that this proposed settlement or any
other lawsuits in which IDS Life of New York is a defendant, will have
a material adverse effect on our financial condition.
II.
GENERAL DESCRIPTION OF THE TRUST AND SECURITIES OF THE TRUST
General Information Concerning the Securities of the
Trust and the Rights of Holders
<PAGE>
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.
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 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
<PAGE>
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.
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:
<PAGE>
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.
Policy 3
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's home office or their financial advisor with a written
request for cancellation by the 10th day after they have
received it.
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 10 policy years and in the 10 years following an
increase in specified amount, a surrender charge will be
assessed.
The surrender charge reimburses IDS Life of New York for costs
of issuing the policy, such as processing the application
(primarily underwriting) and setting up computer records. It
also partially pays for commissions, advertising and printing
the prospectus and sales literature.
The maximum surrender charge for the initial specified amount
is shown in the policy. It is based on the insured's insurance
age, sex, risk classification and initial specified amount.
The maximum surrender charge for the initial specified amount
will remain level during the first five policy years and then
decrease monthly until it is zero at the end of 10 policy
years. If the specified amount is increased, an additional
maximum surrender charge will apply. The additional maximum
surrender charge in a revised policy. It will be based on the
insured's attained insurance age, sex, risk classification and
the amount of the increase. The additional maximum surrender
charge will remain level during the first five years following
the effective date of the increase and then decrease monthly
until it is zero at the end of the 10th year following the
increase.
If the owner surrenders part of the value of the 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.
<PAGE>
The owner may surrender the policy in full or in part by
written or telephone request. A surrender request will be
processed at the end of the valuation period during which the
request is received. IDS Life of New York may require the
owner to return the policy.
IDS Life of New York normally will process the payment within
seven days; however, it reserves the right to defer payment.
If the owner totally surrenders the policy, they 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 request is received.
After the first policy year, the owner may surrender any
amount from $500 up to 90% 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.
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 we receive the request. In
determining these proportions, IDS Life of New York first
subtracts the amount of any outstanding indebtedness from the
fixed account value.
(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. 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.
<PAGE>
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:
(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.
<PAGE>
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).
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.
<PAGE>
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.
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.
<PAGE>
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.
<PAGE>
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.
<PAGE>
Such transfers 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.
Policy 3
Effect of partial surrenders:
o A partial surrender will reduce the policy value by the
amount of the partial surrender and fee.
o A partial surrender will reduce the death benefit 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 no lapse
guarantee. The surrender amount is deducted from total
premiums paid, which may reduce the total below the
level required to keep the no lapse guarantee in
effect.
o If Option 1 is in effect, a partial surrender will
reduce the specified amount by the amount of the
partial surrender and fee. IDS Life of New York will
deduct this decrease from the current specified amount
in this order:
1. First from the specified amount provided by the most recent
increase;
2. Next from the next most recent increases
successively;
3. Then from the initial specified amount when the policy was
issued.
Because they reduce the specified amount, partial surrenders
may affect the cost of insurance. IDS Life of New York will
not allow a partial surrender if it would reduce the specified
amount below the required minimum.
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, IDS Life of New York will process the transfer
request at the end of the valuation period during which it
receives the request. 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.
Transfers involving the fixed account are subject to the
restrictions below.
<PAGE>
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 at any
time for transfer periods the owner chooses subject to
certain minimums.
o If IDS Life of New York receives your request to
transfer amounts 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 IDS Life of New
York receives 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, the owner 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 you exercise the policy's right to
exchange provision.
Minimum Transfer Amounts
From a subaccount to another subaccount or the fixed account:
o For mail and phone transfers--$250 or the entire
subaccount balance, whichever is less.
o For automated transfers--$50.
From the fixed account to a subaccount:
o $250 or the entire fixed account balance, minus any
outstanding indebtedness, whichever is less.
o For automated transfers -- $50.
Maximum Transfer Amounts
From a subaccount to another subaccount or the fixed account:
o None.
From the fixed account to a subaccount:
o 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 five per policy year. Twelve automated
transfers per policy year are allowed.
Two Ways to Request a Transfer, Loan or Surrender
The owner must provide their name, policy number, Social
Security Number or Taxpayer Identification Number when they
request a transfer.
<PAGE>
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,
mail procedure is an alternative.
o IDS Life of New York will honor any telephone transfer
or surrender request believed to be authentic and will
use reasonable procedures to confirm that it is. These
procedures include asking identifying questions and
tape recording calls. As long as these procedures are
followed, IDS Life of New York and its affiliates will
not be liable for any loss resulting from fraudulent
requests.
o Telephone transfers are available automatically. The
owner may request that telephone transfers not be made
from their account by writing to IDS Life of New York.
Automated Transfers
In addition to written and telephone 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 amount: $50
o Only one automated transfer arrangement can be in
effect at any time. Policy values may be transferred to
one or more subaccounts and the fixed account, but can
be transferred from only one account.
o The owner can start or stop this service by written
request. They must allow seven days for IDS Life of New
York to change any instructions that currently are in
place.
o The owner cannot make automated transfers from the
fixed account in an amount that, if continued, would
deplete the fixed account within 12 months.
o If the owner makes 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.
<PAGE>
o If the request is submitted with an application for a
policy, automated transfers will not take effect until
the policy is issued.
o If the value of the account from which the policy value
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.
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, the owner may
transfer all of the policy value in the subaccounts to the
fixed account. IDS Life of New York automatically will credit
all future premium payments to the fixed account unless the
owner requests a different allocation.
A transfer for this purpose will not count against the
five-transfers-per-year limit. Also, any restrictions on
transfers into the fixed account for this type of transfer
will be waived.
There is no effect on the policy's death benefit, specified
amount, net amount at risk, risk classification 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.
<PAGE>
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.
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.
<PAGE>
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.
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.
Policy 3
Keeping The Policy in Force
No lapse guarantee (NLG)
The NLG provides that your policy will remain in force for
five policy years, even if the cash surrender value is
insufficient to pay the monthly deduction. The NLG will stay
in effect as long as:
o the sum of premiums paid; minus
o partial surrenders; minus
o outstanding indebtedness; equals or exceeds
o the minimum monthly premiums due since the policy date.
The minimum monthly premium is shown in the policy.
If, on a monthly date, the owner has not paid enough premiums
to keep the NLG in effect, the no lapse guarantee will
terminate. In addition, the policy will lapse (terminate) if
the cash surrender value is less than the amount needed to pay
the monthly deduction.
The no-lapse guarantee period may be reinstated within 2 years
of its termination if the policy is in force.
Grace period
If on a monthly date the cash surrender value of the policy is
less than the amount needed to pay the next monthly deduction
and the NLG is not in effect, the owner will have 61 days to
pay the required premium amount. If the owner does not pay the
required premium, 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 it can make the next three monthly deductions. If IDS
Life of New York receives this premium before the end of the
61-day grace period, it will use the payment to cover all
monthly deductions and any other charges then due. IDS Life of
New York will add any balance to the policy value and allocate
it 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 insured dies
during the grace period, any overdue monthly deductions will
be deducted from the death benefit.
Reinstatement
The policy may be reinstated within five years after it
lapses, unless the owner surrendered it for cash. To
reinstate, IDS Life of New York will require:
<PAGE>
o a written request;
o evidence satisfactory to IDS Life of New York that the
insured remains insurable;
o payment of the required reinstatement premium; and
o payment or reinstatement of any indebtedness.
The reinstatement premium is the required premium to reinstate
the policy.
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 application for reinstatement. Surrender charges will also
be reinstated.
IDS Life of New York will have two years from the effective
date of reinstatement to contest the truth of statements or
representations in the reinstatement application.
(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
<PAGE>
votes among candidatesin 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 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.
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
<PAGE>
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 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
<PAGE>
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.
Policy 3
The Variable account is comprised of various subaccounts. The
subaccounts, the commencement dates of the subaccounts and the
portfolios they invest in are outlined in the table below.
Subaccount Investing in:
IDS Life Series Fund -
Equity Equity Portfolio (8/87) 1
Equity Income Equity Income Portfolio (9/00)1
Government Securities Government Securities Portfolio (8/87) 1
Income Income Portfolio (8/87) 1
International Equity International Equity Portfolio (10/94) 1
Managed Managed Portfolio (8/87) 1
Money Market Money Market Portfolio (8/87) 1
AXPSM Variable Portfolio -
YBC Blue Chip Advantage Fund (9/00) 1
YBD Bond Fund (9/00) 1
YCR Capital Resource Fund (9/00) 1
YCM Cash Management Fund (9/00) 1
YDE Diversified Equity Income Fund (9/00) 1
YEM Emerging Markets Fund (9/00) 1
YEX Extra Income Fund (9/00) 1
YFI Federal Income Fund (9/00) 1
YGB Global Bond Fund (9/00) 1
YGR Growth Fund (9/00) 1
YIE International Fund (9/00) 1
YMF Managed Fund (9/00) 1
YND New Dimensions Fund(R)(9/00) 1
YIV S&P 500 Index Fund (9/00) 1
YSM Small Cap Advantage Fund (9/00) 1
YSA Strategy Aggressive Fund (9/00) 1
AIM V.I.
YCA Capital Appreciation Fund (9/00) 1
YCD Capital Development Fund (9/00) 1
YGI Growth and Income Fund (11/96) 1
American Century VP
YIR International (9/00) 1
YVL Value (9/00) 1
Calvert CVS
YSB Social Balanced Portfolio (9/00) 1
Fidelity VIP
YGC III Growth & Income Portfolio (Service
Class) (9/00) 1
YMP III Mid Cap Portfolio (Service Class)
(9/00) 1
YOS Overseas Portfolio (Service Class)
(9/00) 1
FTVIPT
YRE Franklin Real Estate Fund - Class 2
(9/00) 1
YSV Franklin Value Securities Fund - Class
2 (9/00) 1
YIF Templeton International Securities Fund
- Class 2 (9/00) 1
YIS Templeton International Smaller
Companies Fund -
Class 2 (9/00) 1
Goldman Sachs VIT
YSE CORESM Small Cap Equity Fund (9/00) 1
YUE CORESM U.S. Equity Fund (9/00) 1
<PAGE>
YMC Mid Cap Value Fund (9/00) 1
Janus Aspen Series
YAG Aggressive Growth Portfolio: Service
Shares (9/00) 1
YGT Global Technology Portfolio: Service
Shares (9/00) 1
YIG International Growth Portfolio: Service
Shares (9/00) 1
Lazard Retirement Series
YIP International Equity Portfolio (9/00) 1
MFS(R) VIT
YGW Growth Series - Service Class (9/00) 1
YDS New Discovery Series - Service Class
(9/00) 1
Putnam Variable Trust
YPH Putnam VT High Yield - Class IB Shares
(9/00) 1
YIO Putnam VT International New
Opportunities Fund - Class IB Shares
(9/00) 1
YNO Putnam VT New Opportunities Fund -
Class IA Shares (11/96) 1
YVS Putnam VT Vista Fund - Class IB Shares
(9/00) 1
Royce
YMI Micro-Cap Portfolio (9/00) 1
Third Avenue
YVA Value Portfolio (9/00) 1
Wanger
YIC International Small Cap (9/00) 1
YSP U.S. Small Cap (9/00) 1
Warburg Pincus Trust
YEG Emerging Growth Portfolio (9/00) 1
YSC Small Company Growth Portfolio (9/00) 1
1 (Commencement date of the subaccount)
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.
<PAGE>
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.
(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.
(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.
<PAGE>
(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 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.
<PAGE>
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.
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.
<PAGE>
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.
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:
<PAGE>
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.
Policy 3
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 first several policy years until the policy value
is sufficient to cover the surrender charge, IDS Life of New
York requires that the owner pay premiums sufficient to keep
the NLG in effect in order to keep the policy in force.
The owner may schedule payments annually, semiannually or
quarterly. (IDS Life of New York must approve payment at any
other interval). IDS Life of New York shows this premium
schedule 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 the cash surrender value is sufficient
to pay the monthly deduction or if sufficient premiums have
been paid to keep the no lapse guarantee 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 payments will affect the policy
value, cash surrender value and length of time the policy will
remain in force, as well as affect whether the NLG remains in
effect.
Premium limitations:
The owner may make unscheduled premium payments at any time
and in any amount of at least $25. 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 maturity date.
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 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) selected in the application. At that time, IDS
Life of New York will begin to assess the various loads, fees,
charges and expenses.
<PAGE>
IDS Life of New York converts any amount that the owner
allocates to a subaccount into accumulation units of that
subaccount. Similarly, when the owner transfers value between
subaccounts, IDS Life of New York converts accumulation units
in one subaccount into a cash value, which IDS Life of New
York then converts 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
person whose life the owner proposes to insure (owner or
someone else). The underwriting department of IDS Life of New
York will review the application and any medical information
or other data required to determine whether the proposed
individual is insurable under its underwriting rules. The
application may be declined if IDS Life of New York determines
the individual is not insurable and IDS Life of New York will
return any premium paid.
Age limit: IDS Life of New York generally will not issue a
policy where the proposed insured is over the insurance age of
80. 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 insured dies.
If that death is prior to the maturity date, the amount
payable is based on the specified amount and death benefit
option (described below) that the owner has selected, less any
indebtedness.
Option 1 (level amount): Under this option, the policy's value
is part of the specified amount. The Option 1 death benefit is
the greater of:
o the specified amount on the date of the insured's
death; or
o the applicable percentage of the policy value on the
date of the insured's death, if that death occurs on a
valuation date, or on the next valuation date following
the date of death.
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 your policy to qualify
as life insurance.
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 insureds 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).
<PAGE>
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.
IDS Life Series Fund, Inc1, 2, 3
The Shearson Lehman Brothers Fund of Stripped
("Zero Coupon") U.S. Treasury
Securities Fund, Series A ("Zero Coupon Trust" -
a unit investment Trust).1
American Express(R) Variable Portfolio Funds3
AIM Variable Insurance Funds, Inc.1, 2, 3
American Century Variable Portfolios, Inc.3
Calvert Variable Series, Inc.3
Fidelity Variable Insurance Products, Service
Products3
Franklin Templeton Variable Insurance Products
Trust3
Goldman Sachs Variable Insurance Trust3
Janus Aspen Series3
Lazard Retirement Series, Inc.3
MFS Variable Insurance Trust3
Putnam Variable Trust1, 2, 3
Royce Capital Fund3
Third Avenue Variable Series Trust3
Wanger Advisors Trust3
Warburg Pincus Trust3
1Applies to Policy 1
2Applies to Policy 2
3Applies to Policy 3
(b) Name and principal address of depositor.
Investment manager of IDS Life Series Fund, Inc.:
IDS Life Insurance Company
70100 AXP Financial Center
Minneapolis, MN 55474
Investment manager of American Express(R)Variable Portfolio
Funds:
IDS Life Insurance Company
70100 AXP Financial Center
Minneapolis, MN 55474
Investment adviser of AIM Variable Insurance Funds, Inc.:
AIM Advisors, Inc.
11 Greenway Plaza
Suite 100
Houston, TX 77046-1173
Investment manager of American Century Variable Portfolios,
Inc.:
American Century Investment Management, Inc.
American Century Tower
4500 Main Street
Kansas City, MO 641111
<PAGE>
Investment adviser of Calvert Variable Series, Inc.:
Calvert Asset Management Company, Inc.
4550 Montgomery Avenue
Suite 100 N
Bethesda, MD 20814
Investment subadviser:
NCM Capital Management Group, Inc.
103 West Main Street
Durham, NC 27701
Investment manager of Fidelity Variable Insurance Products:
Fidelity Management and Research (FMR) U.K. Inc.
London, England
Investment manager of Templeton Variable Products Series Fund:
Templeton Investment Counsel, Inc.
Broward Financial Center
Suite 2100
Fort Lauderdale, FL 33394
Investment adviser of Goldman Sachs Variable Insurance Trust:
Goldman Sachs Asset Management
32 Old Slip
New York, NY 10005
Investment adviser of Janus Aspen Series:
Janus Capital
100 Fillmore Street
Denver, CO 80206-4928
Investment manager of Lazard Retirement Series, Inc.:
Lazard Asset Management
30 Rockefeller Plaza
New York, NY 10112
Investment adviser of MFS Variable Insurance Trust:
Massachusetts Financial Service Company
500 Boyland Street
Boston, MA 02116
Investment manager of Putnam Variable Trust:
Putnam Investment Management, Inc.
One Post Office Square
Boston, MA 02109
Investment adviser of Royce Capital Fund:
Royce & Associates Inc.
1414 Avenue of the Americas
New York, NY 10019
Investment adviser of Third Avenue Variable Trust:
EQSF Advisers, Inc.
767 Third Avenue
New York, NY 10017-2023
<PAGE>
Investment adviser of Wanger Advisors Trust:
Wanger Asset Mangement, L.P.
227 West Monroe Street
Suite 3000
Chicago, IL 60606
Investment adviser of Warburg Pincus Trust:
Credit Suisse Asset Mangement, LLC
One Citicorp Center
153 East 53rd Street
New York, NY 10022
(c) Name and principal business address of trustee or custodian.
For IDS Life Series Fund, Inc.
American Express Trust Company
200 AXP Financial Center
Minneapolis, MN 55474
Sponsor of the Zero Coupon Trust:
The Bank of New York
101 Barclay Street
New York, NY 10286
For American Express(R) Variable Portfolio Funds:
American Express Trust Company
200 AXP Financial Center
Minneapolis, MN 55474
For A I M Variable Insurance Funds, Inc.:
State Street Bank & Trust Co.
225 Franklin Street
Boston, MA 02110
For American Century Variable Portfolios, Inc.:
Chase Manhattan Bank
770 Broadway 10th Floor
New York, NY 10003-9598
For Calvert Variable Series, Inc.:
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
For Fidelity Variable Insurance Products:
The Bank of New York
110 Washington Street
New York, NY 10286
For Templeton Variable Products Series Fund:
Bank of New York
Mutual Funds Division
90 Washington Street
New York, NY 10286
<PAGE>
For Goldman Sachs Variable Insurance Trust:
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
For Janus Aspen Series:
State Street Bank and Trust Co.
P.O. Box 0351
Boston, MA 02117-0351
For Lazard Retirement Series, Inc.:
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
For MFS Variable Insurance Trust:
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
For Putnam Variable Trust:
Putnam Fiduciary Trust Company, a wholly-owned subsidiary of
Putnam Investments, Inc.
One Post Office Square
Boston, MA 02109
For Royce Capital Fund:
State Street Bank and Trust Co.
225 Franklin Street
Boston, MA 02110
For Third Avenue Variable Trust Series:
Custodial Trust Company
101 Carnegie Center
Princeton, NJ 08540-6231
For Wanger Advisors Trust:
State Street Bank and Trust Co.
P.O. Box 8502
Boston, MA 02266-8502
For Warburg Pincus Trust:
PNC Bank, National Association
200 Stevens Drive
Suite 440
Lester, PA 02171
and Commerce Bank, N.A.
1000 Walnut
Kansas City, MO 64105
(d) Name and principal business address of principal underwriter.
IDS Life of New York
20 Madison Avenue Ext.
Albany, NY 12203
<PAGE>
(e) The period during which the securities of such Company have
been the underlying securities.
The commencement dates of the subaccounts are set out in the
table below.
Subaccount Investing in:
IDS Life Series Fund -
Equity Equity Portfolio (8/87) 1
Equity Income Equity Income Portfolio (9/00)1
Government Securities Government Securities Portfolio (8/87) 1
Income Income Portfolio (8/87) 1
International Equity International Equity Portfolio (10/94) 1
Managed Managed Portfolio (8/87) 1
Money Market Money Market Portfolio (8/87) 1
AXPSM Variable Portfolio -
YBC Blue Chip Advantage Fund (9/00) 1
YBD Bond Fund (9/00) 1
YCR Capital Resource Fund (9/00) 1
YCM Cash Management Fund (9/00) 1
YDE Diversified Equity Income Fund (9/00) 1
YEM Emerging Markets Fund (9/00) 1
YEX Extra Income Fund (9/00) 1
YFI Federal Income Fund (9/00) 1
YGB Global Bond Fund (9/00) 1
YGR Growth Fund (9/00) 1
YIE International Fund (9/00) 1
YMF Managed Fund (9/00) 1
YND New Dimensions Fund(R)(9/00) 1
YIV S&P 500 Index Fund (9/00) 1
YSM Small Cap Advantage Fund (9/00) 1
YSA Strategy Aggressive Fund (9/00) 1
AIM V.I.
YCA Capital Appreciation Fund (9/00) 1
YCD Capital Development Fund (9/00) 1
YGI Growth and Income Fund (11/96) 1
American Century VP
YIR International (9/00) 1
YVL Value (9/00) 1
Calvert CVS
YSB Social Balanced Portfolio (9/00) 1
Fidelity VIP
YGC III Growth & Income Portfolio (Service
Class) (9/00) 1
YMP III Mid Cap Portfolio (Service Class)
(9/00) 1
YOS Overseas Portfolio (Service Class)
(9/00) 1
FTVIPT
YRE Franklin Real Estate Fund - Class 2
(9/00) 1
YSV Franklin Value Securities Fund - Class
2 (9/00) 1
YIF Templeton International Securities Fund
- Class 2 (9/00) 1
YIS Templeton International Smaller
Companies Fund -
Class 2 (9/00) 1
Goldman Sachs VIT
YSE CORESM Small Cap Equity Fund (9/00) 1
YUE CORESM U.S. Equity Fund (9/00) 1
YMC Mid Cap Value Fund (9/00) 1
Janus Aspen Series
YAG Aggressive Growth Portfolio: Service
Shares (9/00) 1
YGT Global Technology Portfolio: Service
Shares (9/00) 1
<PAGE>
YIG International Growth Portfolio: Service
Shares (9/00) 1
Lazard Retirement Series
YIP International Equity Portfolio (9/00) 1
MFS(R) VIT
YGW Growth Series - Service Class (9/00) 1
YDS New Discovery Series - Service Class
(9/00) 1
Putnam Variable Trust
YPH Putnam VT High Yield - Class IB Shares
(9/00) 1
YIO Putnam VT International New
Opportunities Fund - Class IB Shares
(9/00) 1
YNO Putnam VT New Opportunities Fund -
Class IA Shares (11/96) 1
YVS Putnam VT Vista Fund - Class IB Shares
(9/00) 1
Royce
YMI Micro-Cap Portfolio (9/00) 1
Third Avenue
YVA Value Portfolio (9/00) 1
Wanger
YIC International Small Cap (9/00) 1
YSP U.S. Small Cap (9/00) 1
Warburg Pincus Trust
YEG Emerging Growth Portfolio (9/00) 1
YSC Small Company Growth Portfolio (9/00) 1
1 (Commencement date of the subaccount)
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.
<PAGE>
<TABLE>
<CAPTION>
Policy 1
(1) Principal Payments.
Nature of Charge Amount Person to whom Paid/Relationship Services
---------------- ------ -------------------------------- --------
<S> <C> <C> <C>
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
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 and if policy is surrendered within 5 Underwriting
Administrative years of policy issue, decreasing Expenses at Issue
Expense Charge monthly thereafter at a rate of 20%
(Issue) per year
Contingent $4 per $1000 increase in Specified IDS Life of New York Issue and
Deferred Issue and Amount if policy is surrendered within Underwriting
Administrative 5 policy years of increase, decreasing Expenses at Increase
Expense Charge monthly thereafter at a rate of 20%
(Increase) per year
<PAGE>
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
</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>
<TABLE>
<CAPTION>
Policy 2
(1) Principal Payments.
Nature of Charge Amount Person to whom Paid/Relationship Services
---------------- ------ -------------------------------- --------
<S> <C> <C> <C>
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
Contingent $4 per $1,000 of the initial specified IDS Life of New York Issue and
Deferred Issue and amount of the policy, if it is Underwriting
Administrative surrendered during the first policy Expenses at Issue
Expense Charge years, and then decreasing monthly
(Surrender Charge) until it is zero at the end of 15
policy years.
Partial Surrender $25 (or 2% of the amount surrendered; IDS Life of New York Transaction Costs
Fee if less).
<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 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>
<TABLE>
<CAPTION>
Policy 3
(1) Principal Payments.
Nature of Charge Amount Person to whom Paid/Relationship Services
---------------- ------ -------------------------------- --------
<S> <C> <C> <C>
Premium Expense 3.5 % of premiums payment. IDS Life of New York Distribution of
Charge policy; State and
governmental taxes
Policy Fee $5 per month. IDS Life of New York Administrative
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 Riders determined by nature IDS Life of New York
and amount of IDS Life Optional Insurance riders attached
to policy.
Partial Surrender $25 (or 2% of the amount surrendered, IDS Life of New York Transactional Costs
Fee if less).
Surrender Charge Determined based on the insureds age, IDS Life of New York Sales, issue and
sex, risk classification and initial underwriting expense
specified amount. Remains level for 5 at issue
years and then decreases monthly until
it is zero at the end of 10 policy
years.
</TABLE>
<PAGE>
(2) Underlying Security
The investment managers and advisers receive fees for their services to the
funds. The funds also pay taxes, brokerage commissions and nonadvisory expenses,
such as custodian and trustee fees, registration fees for shares, postage,
fidelity and security bond costs, legal fees and other miscellaneous fees and
charges. The table below sets out the expenses that the funds pay. The annual
operating expenses are calculated as a percentage of average daily net assets
and paid to the investment managers and advisers as set forth in the answer to
question 11(b).
<TABLE>
<CAPTION>
Management 12b-1 Other
Fees Fees Expenses Total
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
<S> <C> <C> <C> <C>
IDS Life Series Fund
Equity Portfolio .70% -- .03 .73%1
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Equity Income Portfolio .70% -- .10 .80%2
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Government Securities Portfolio .70% -- .10 .80%2
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Income Portfolio .70% -- .05 .75%1
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
International Equity Portfolio .95% -- .10 1.05%1
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Managed Portfolio .70% -- .04 .74%1
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Money Market Portfolio .50% -- .10 .60%1
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
AXPSM Variable Portfolio -
Blue Chip Advantage Fund .56% .13 .26 .95%3
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Bond Fund .60% .13 .08 .81%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Capital Resource Fund .60% .13 .06 .79%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Cash Management Fund .51% .13 .05 .69%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Diversified Equity Income Fund .56% .13 .26 .95%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Emerging Markets Fund 1.27% .13 .35 1.75%3
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Extra Income Fund .62% .13 .08 .83%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Federal Income Fund .61% .13 .14 .88%3
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Global Bond Fund .84% .13 .12 1.09%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Growth Fund .63% .13 .19 .95%3
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
International Fund .83% .13 .11 1.07%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Managed Fund .59% .13 .04 .76%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
New Dimensions Fund .61% .13 .07 .81%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
S&P 500 Index Fund .37% .13 -- .50%3
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Small Cap Advantage Fund .79% .13 .31 1.23%3
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Strategy Aggressive Fund .60% .13 .07 .80%4
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
AIM V.I.
Capital Appreciation Fund .62% -- .11 .73%5
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Capital Development Fund --% -- 1.23 1.23%5, 6
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Growth and Income Fund .61% -- .16 .77%5
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
<PAGE>
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
American Century VP
International 1.34% -- -- 1.34%7
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Value 1.00% -- -- 1.00%7
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Calvert CVS
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Social Balanced Portfolio .70% -- .16 .86%8
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Fidelity VIP
III Growth & Income Portfolio (Service Class) .48% .10 .12 .70%9
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
III Mid Cap Portfolio (Service Class) .57% .10 .40 1.07%10
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Overseas Portfolio (Service Class) .73% .10 .18 1.01%9
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
FT VIPT
Franklin Real Estate Fund - Class 2 .56% .25 .02 .83%11, 12
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Franklin Value Securities Fund - Class 2 .60% .25 .21 1.06%11
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Templeton International Securities Fund - Class 2 .69% .25 .19 1.13%11, 13
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Templeton International Smaller Companies Fund - .85% .25 .26 1.36%11
Class 2
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Goldman Sachs VIT
CORESM Small Cap Equity Fund .75% -- .25 1.00%14
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
CORESM U.S. Equity Fund .70% -- .20 .90%14
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Mid Cap Value Fund .80% -- .25 1.05%14
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Janus Aspen Series
Aggressive Growth Portfolio: Service Shares .65% .25 .02 .92%15
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Global Technologies Portfolio: Service Shares .65% .25 .13 1.03%15
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
International Growth Portfolio: Service Shares .65% .25 .11 1.01%15
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Lazard Retirement Series
International Equity Portfolio .75% .25 .25 1.25%16
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
MFS(R) VIT
Growth Series - Service Class .75% .20 .16 1.11%17,
18, 19
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
New Discovery Series - Service Class .90% .20 .17 1.27%17,
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Putnam Variable Trust
Putnam VT High Yield Fund - Class IB Shares .65% .15 .07 .87%5
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Putnam VT International New Opportunities Fund - 1.08% .15 .33 1.56%5
Class IB Shares
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Putnam VT New Opportunities Fund - Class 1A Shares .54% -- .05 .59%5
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Putnam VT Vista Fund - Class IB Shares .65% .15 .10 .90%5
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Royce
Micro-Cap Portfolio 1.25% -- .10 1.35%20
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Third Avenue
Value Portfolio .90% -- .40 1.30%21
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Wanger
International Small Cap 1.25% -- .24 1.49%22
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
U.S. Small Cap .95% -- .07 1.02%22
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Warburg Pincus Trust
Emerging Growth Portfolio --% -- 1.40 1.40%23
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
Small Company Growth Portfolio .90% -- .24 1.14%5
---------------------------------------------------------- ------------------ ---------------- --------------- -------------
</TABLE>
1Actual operating expenses for the fiscal year ending April 30, 1999.
2IDS Life has agreed to a voluntary limit of 0.1%, on an annual basis, of the
average daily net assets of each of the IDS Life series Fund Portfolio's for
other expenses like taxes and brokerage commissions and for nonadvisory
expenses. If the 0.1% limitation had not been in place, these other expenses
would have been 0.17% for IDS Life Series Fund - Government Securities
Portfolio. IDS Life Series Fund - Equity Income Portfolio is new. IDS Life plans
to limit these expenses to 0.1%. IDS Life reserves the right to discontinue
limiting these other expenses at 0.1%. However, its present intention is to
continue the limit until the time that actual expenses are less than the limit.
3Based on estimated expenses after fee waivers and expenses reimbursements.
Without fee waivers and expense reimbursements "Other Expenses and "Total" would
be 0.39% and 1.08% for AXP Variable Portfolio - Blue Chip Advantage and AXP
Variable Portfolio Diversified Equity Income Funds, 0.26% and 1.00% for AXP
Variable Portfolio - Federal Income Fund, 0.32% and 1.08% for AXP Variable
Portfolio - Growth Fund and 0.43% and 1.35% for AXP Variable Portfolio - Small
Cap Advantage Fund.
4The fund's expense figures are based on actual expenses for the fiscal year
ended Aug. 31, 1999 restated to include a Rule 12b-1 distribution fee of .125%
that went into effect Sept. 21, 1999.
5Figures in "Management Fees," "Other Expenses" and "Total" are based on actual
expenses for the fiscal year ended Dec. 31, 1999.
6Had there been no fee waivers or expense reimbursement, expenses would have
been: 0.75%, 0.00%, 2.67% and 3.42%.
7The Fund has a stepped fee schedule. As a result, the fund's management fee
rate generally decreases as fund assets increase.
8Net fund operating expenses after reductions for fees paid indirectly again
restated to reflect an indirect for Social Balanced would be 0.89%. Total
expenses have been restated to reflect expenses expected to be incurred in 2000.
9A portion of the brokerage commissions that certain funds pay was used to
reduce fund expenses. In addition, through arrangements with certain funds'
custodian, credits realized as a result of uninvested cash balances were used to
reduce a portion of each applicable funds' expenses. With these reductions,
"Other Expenses," and "Total Expenses" presented in the table would have been
0.11% and 0.69% for Growth & Income Portfolio and 0.15% and 0.98% for Overseas
Portfolio.
<PAGE>
10FMR agreed to reimburse a portion of Mid Cap Portfolio's expenses during the
period. Without this reimbursement, the Portfolio's management fee, distribution
& service fee (12b-1), other expenses and total expenses would have been 0.57%,
0.10% 2.74% and 3.41%, respectively.
11The fund's Class 2 distribution plan or Rule 12b-1 plan is described in the
fund's prospectus.
12Previously Franklin Real Estate Securities Fund. The fund administration fee
is paid indirectly through the management fee. The fund's Class 2 distribution
plan or "Rule 12b-1 Plan" is described in the fund's prospectus.
13On Feb. 8, 2000, shareholders approved a merger and reorganization that
combined the fund with the Templeton International Equity Fund, effective May 1,
2000. The shareholders of that fund approved new management fees, which apply to
the combined fund effective May 1, 2000. The table shows restated total expenses
based on the new fees and the assets of the funds as of Dec. 31, 1999, and not
the assets of the combined fund. However, if the table reflected both the new
fees and the combined assets, the fund's expenses after May 1, 2000 would be
estimated as: Management Fees 0.65%, 12b-1 Fees 0.25%, Other Expenses 0.20%, and
Total 1.10%.
14The fund's expenses are based on estimated expenses for the fiscal year ended
Dec. 31, 2000. Goldman Sachs Asset Management and Goldman Sachs Asset Management
International, the investment advisers, have voluntarily agreed to reduce or
limit certain other expenses (excluding management fees, taxes, interest,
brokerage fees, litigation, indemnification and other extraordinary expenses) to
the extent such expenses exceed the percentage stated in the above table (as
calculated per annum) of each fund's respective average daily net assets.
Without the limitations described above, Other Expenses and Total would be as
follows: 0.75% and 1.50% for CORE Small Cap Equity Fund, and 0.42% and 1.22% for
Mid Cap Value Fund (formerly, the Mid Cap Equity Fund) and 0.20% and 0.90% for
the CORESM U.S. Equity Fund, CORESM, is a service mark of Goldman Sachs and Co.
15Expenses are based on estimated expenses that the new Service Shares class of
each portfolio expects to incur in its initial fiscal year. All expenses are
shown without the effect of expense offset arrangements.
16Effective May 1, 1999, the investment adviser agreed to waive its fees and/or
reimburse the Funds through Dec. 31, 2000 to the extent that total Fund expenses
exceed 1.25% for Equity and 1.25% for International Equity of the Funds' average
daily net assets. Absent fee waivers and/or reimbursements, Other Expenses and
Total Expenses for the year ended Dec. 31, 1999 would have been 11.94% and
12.94% for International Equity.
17Each series has adopted a distribution plan under Rule 12b-1 that permits it
to pay marketing and other fees to support the sales and distribution of service
class shares (these fees are referred to as distribution fees).
18Each series has an expense offset arrangement which reduces the series'
custodian fee based upon the amount of cash maintained by the series with its
custodian and dividend disbursing agent. The series may enter into other similar
arrangements and directed brokerage arrangements, which would also have the
effect of reducing the series' expenses. "Other Expenses" do not take into
account these expense reductions, and are therefore higher than the actual
expenses of the series. Had these fee reductions been taken into account, "Net
Expenses" would be lower, and for service class shares would be estimated to be:
1.10% for Growth Series and 1.25% for New Discovery Series.
19MFS has contractually agreed, subject to reimbursement, to bear expenses for
the series' expenses such that "Other Expenses" (after taking into account the
expense offset arrangement described above), do not exceed 0.15% annually.
Without this agreement, "Other Expenses" and Total would be 0.71% and 1.66% for
Growth Series and 1.59% and 2.69% for New Discovery Series. These contractual
fee arrangements will continue until at least May 1, 2001, unless changed with
the consent of the board of trustees which oversees the series.
20Royce has contractually agreed to waive its fees and reimburse expenses to the
extent necessary to maintain the Funds Net Annual Operating Expense ratio at or
below 1.35% through Dec. 31, 1999 and 1.99% through Dec. 31, 2008. Absent fee
waivers "Other Expenses" and "Total Expenses" would be 0.99% and 2.24% for Royce
Micro-Cap Portfolio.
21These expenses reflect reimbursements by the Adviser. The Adviser reimbursed
the Fund for all expenses incurred by the Fund in excess of 1.30% of Fund
assets. The fund will repay the Adviser the amount of its reimbursement for up
to three years following the reimbursement to the extent Fund expenses drop
below 1.30%. The Adviser expects to continue to reimburse the Fund for these
expenses for the foreseeable future. Either the Fund or the Adviser can
terminate this arrangement at any time. Without this reimbursement, the Fund's
"Other Expenses" and "Total" would have been 2.05% and 2.95%. Other expenses are
based on estimated amounts for the current fiscal year.
22Actual operating expenses of funds at Dec. 31, 1999.
23Expense ratios are shown after fee waivers and expenses reimbursements by the
investment adviser. The total expense ratios before the waivers and
reimbursements would have been 11.16% for Emerging Growth Portfolio of the
Warburg Pincus Trust.
IDS Life of New York has also entered into certain agreements under which it is
compensated by the funds' advisors and/or distributors for the administrative
services provided to these funds.
(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, 2 and 3
See Item 13(a)(1).
(c) State the amount of total deductions as a percentage of the
net amount invested for each type of security issued by the
trust. State each different sales charge available as a
percentage of the public offering price and as a percentage of
the net amount invested. List any special purchase plans or
methods established by rule or exemptive order that reflect
scheduled variations in, or elimination of, the sales load and
identify each class of individuals or transactions to which
such plans apply.
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.
Policy 3
o Premium expense charge: 3.5% of each premium payment.
o Cost of insurance charge for the sex, age and rate
classification for the assumed insured.
o Policy fee: $5 per month.
Expenses paid by the fund and charges made against the
subaccounts.
<PAGE>
(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.
(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.
Policy 3
Mortality and expense risk charge
This charge applies only to the subaccounts and not to the
fixed account. It is equal, on an annual basis, to 0.9% of the
average daily net asset value of the subaccounts for the first
10 policy years and 0.45% thereafter. IDS Life of New York
reserves the right to charge up to 0.9% for all policy years.
Computed daily, the charge compensates IDS Life of New York
for:
<PAGE>
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
surrender charge may be insufficient to cover the cost
of administering the policy.
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 premium expense charge and surrender charges discussed
earlier. IDS Life of New York will make up any further deficit
from its general assets.
(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(d) 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. 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.
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.
Policies 1, 2 and 3
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. 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.
<PAGE>
Policies 1, 2 and 3
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. 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.
Policies 1, 2 and 3
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.
Policies 1, 2 and 3
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.
<PAGE>
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.
Policy 3
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.
(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.
<PAGE>
Policy 3
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, the account charged and the basis of determining the
amount of each charge.
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.
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.
<PAGE>
(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.
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.
<PAGE>
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.
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 notbeen 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.
<PAGE>
Policy 3
Policy loans
The owner may borrow against the policy by written or
telephone request. IDS Life of New York will process the loan
request at the end of the valuation period during which it
receives the request. Loans by telephone are limited to
$50,000.
Interest rate: The interest rate for policy loans is 6% per
year. After the 10th anniversary IDS Life of New York expects
to reduce the loan interest to 4% per year. Interest is
charged daily and due at the end of the policy year.
Minimum loan: $200
Maximum loan: 90% of the policy value minus surrender
charges.
IDS Life of New York will compute the maximum loan value as of
the end of the valuation period during which it receives the
loan request. The amount available at any time for a new loan
is the maximum loan value less any existing indebtedness. When
IDS Life of New York computes the amount available, it
reserves the right to deduct from the loan value interest for
the period until the next policy anniversary and monthly
deductions that it will take until the next policy
anniversary.
Payment of loaned funds: Generally, IDS Life of New York will
pay loans within seven days after it receives the request.
Allocation of loans to accounts: If the owner does not specify
whether the loan is to come from the fixed account or the
subaccounts, IDS Life of New York will take it from the
subaccounts and the fixed account in proportion to their
values, minus indebtedness. When IDS Life of New York makes a
loan from a subaccount, it redeems accumulation units and
transfers the proceeds into the fixed account. IDS Life of New
York will credit the loaned amount with 4.0% annual interest.
Repayments: IDS Life of New York will allocate loan repayments
to subaccounts and/or the fixed account using the premium
allocation percentages in effect unless the owner instructs us
otherwise. Repayments must be in amounts of at least $25.
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 (IDS Life
of New York has not collected good payment);
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.
IDS Life of New York may delay the payment of any loans or
surrenders from the fixed account up to six months from the
date it receives 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 3% for the period of postponement.
<PAGE>
(c) 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. The following items should be
covered:
(1) The name of each person who makes such agreements or
arrangements with security holders.
(2) The rate of interest payable on such loans.
(3) The period for which loans may be made.
(4) Costs or charges for default in repayment at maturity.
(5) Other material provisions of the agreement or
arrangement.
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.
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.
<PAGE>
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.
Policy 3
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.
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 the loan,
it will reduce the death benefit and cash surrender value.
Even if the owner does repay it, the 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 fund(s).
A loan may terminate the no lapse guarantee. IDS Life of New
York deducts the loan amount from the total premiums paid,
which may reduce the total below the level required to keep
the NLG in effect.
(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.
To be filed by amendment.
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.
<PAGE>
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.
Policies 1 and 2
To be filed by amendment.
Policy 3
Not applicable.
(b) Furnish the following information 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:
(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 fiscal
year covered by the financial statements filed
herewith.
Policies 1, 2 and 3
IDS Life of New York has entered into certain agreements with
which it is compensated by the advisers and/or distributors of
various funds for the administrative services it provides for
these funds.
<PAGE>
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.
Timothy V. Bechtold
Director since April 1999; president since 1998, Risk
Management Products since December 1999; vice president, Risk
Management Products, IDS Life Insurance Company from January
1995 to December 1999; vice president, Insurance Product
Development, IDS Life Insurance Company from May 1989 to
December 1994.
Maureen A. Buckley
Director since April 1999; vice president, chief operating
officer and consumer affairs officer and claims officer since
1998; chief operating officer and consumer affairs officer,
American Centurion Life Assurance Company, since March 1995;
supervisor, IDS Life of New York from September 1989 to March
1995.
Rodney P. Burwell
Director since April 1999; chairman, Xerxes Corporation
(manufacturing), since 1969.
John Cattau
Director since April 1999; vice president, American Express
Financial Direct, since November 1997; manager, American
express Financial Direct from June 1992 to November 1997.
<PAGE>
Robert R. Grew
Lawyer and Partner, Carter, Ledyard & Milburn, NYC, since
1957.
Jean B. Keffeler
Director since April 1999; business and management consultant
since 1991.
Richard W. Kling
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.; and
chairman of the board of managers and president of IDS Life
Variable Annuity Funds A and B.
Thomas R. Mcburney
Director since April 1999; president, McBurney Management
Associates, since 1990.
Edward J. Muhl
Director since April 1999; vice chairman, Peterson Consulting
LLP, since January 1997; superintendent of insurance, New York
State from January 1995 to December 1996; senior vice
president, Reliance Insurance Group from November 1991 to
January 1995.
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.
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 other than directors
Darrell C. Beckstrom
Underwriting officer since 1994; underwriting technical
manger, IDS Life, since 1990; senior underwriter, IDS Life,
from 1987 to 1992.
<PAGE>
Jeffrey W. Sullivan, M.D.
Medical director since 1998.
Lorraine R. Hart
Vice President-Investments since December 1999; investment
officer since March 1992; vice president, Insurance
Investments, IDS Life, since October 1989.
Eric L. Marhoun
General counsel and secretary since 1998; group counsel and
vice president, AEFA, since 1997; counsel AEFA, from 1996 to
1997; associate counsel, AEFA, from 1995 to 1996; associate,
Meagher & Gear, from 1991 to 1995.
Jeffrey S. Horton
Vice president and treasurer since December 1999; vice
president, treasurer and assistant secretary, IDS Life, since
December 1997; vice president and corporate treasurer, AEFC,
since December 1997; controller, American Express
Technologies-Financial Services, AEFC, from July 1997 to
December 1997; controller, Risk Management Products, AEFC,
from May 1994 to July 1997; director of finance and analysis,
Corporate Treasury, AEFC from June 1990 to May 1994.
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:
<PAGE>
(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:
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.
<PAGE>
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 Policies 1 and 2 and intends to
sell Policy 3 in New York only.
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.
<PAGE>
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.
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
IDS Life of New York pays its representatives a commission of
up to 50% of the initial target premium (annualized) when the
policy is sold, plus 2% of all premiums in excess of the
target premium. IDS Life of New York also pays approximately
27% of the total representative's commission to the field vice
presidents and district sales managers of the selling
representative.
Policy 3
IDS Life of New York pays its representatives a commission of
up to 47.5% of the initial minimum monthly premium
(annualized) when the policy is sold, plus 3% of all premiums
in excess of 12 times the minimum monthly premium. IDS Life of
New York pays additional commissions if an increase in
coverage occurs. IDS Life of New York also pays approximately
27% of the total representative's commission to the field vice
presidents and district sales managers of the selling
representative.
<PAGE>
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.
200 AXP Financial Center
Minneapolis, MN 55474
(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.
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 600 supervisory offices and 3,800 branch offices and
more than 9,700 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.
<PAGE>
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.
Policies 1 and 2
To be filed by amendment.
Policy 3
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.
44. (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
<PAGE>
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.
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.
The transaction charge is currently .25 percent on an annual
basis and is guaranteed to never exceed .50 percent.
<PAGE>
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
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.
<PAGE>
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
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:
<PAGE>
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.
Policy 3
Policy value
The value of the 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 equals:
o the portion of the initial net premium allocated to the
fixed account; plus
o interest accrued before the policy date; minus
o the portion of the monthly deduction for the first
policy month 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 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 funds 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 of each subaccount
on the policy date equals:
<PAGE>
o the portion of your initial net premium allocated to
the subaccount; plus
o interest accrued before the policy date; minus
o the portion of the monthly deduction for the first
policy month allocated to that subaccount.
The value on each subaccount on each valuation date equals:
o the value of the subaccount on the preceding valuation
date, multiplied by the net investment factor for the
current valuation period (explained below); plus
o net premiums received and allocated to the subaccount
during the current valuation period; plus
o any transfers to the subaccount (from the fixed account
or other subaccounts, including loan repayment
transfers) during the period; minus
o any transfers from the subaccount including loan
transfers during the current valuation period; minus
o any partial surrenders and partial surrender fees
allocated to the subaccount during the period; minus
o any portion of the monthly deduction allocated to the
subaccount during the period.
The net investment factor measures the investment performance
of a subaccount from one valuation period to the next. Because
performance may fluctuate, the value of a subaccount may
increase or decrease from day to day.
Accumulation units: IDS Life of New York converts the policy
value allocated to each subaccount into accumulation units.
Each time the owner directs a premium payment or transfer
policy value into one of the subaccounts, IDS Life of New York
credits a certain number of accumulation units to the policy
for that subaccount. Conversely, each time the owner takes a
partial surrender or transfer value out of a subaccount, IDS
Life of New York subtracts a certain number of accumulation
units.
Accumulation units are the true measure of investment value in
each subaccount. For subaccounts investing in the funds, they
are 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 funds, and on certain charges.
Here is how unit values are calculated:
Number of units: To calculate the number of units for a
particular subaccount, the investment (net premium or transfer
amount) is divided by the current accumulation unit value.
Accumulation unit value: The current accumulation unit value
for each subaccount equals the last accumulation unit value
times the current net investment factor.
Net investment factor: The net investment factor is determined
at the end of each valuation period. This factor equals
(a divided by b) - c,
where:
<PAGE>
(a) equals:
o net asset value per share of the fund; plus
o per-share amount of any dividend or capital gain
distribution made by the relevant fund 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 fund at the end of the
preceding valuation period; plus
o any credit or minus any charge for reserves to cover
any tax liability in the preceding valuation period.
(c) is a percentage factor representing the mortality and
expense risk charge.
Factors that affect subaccount accumulation units:
Accumulation units of each subaccount may change in two ways;
in number and in value. The factors that influence those
changes are:
The number of accumulation units owned may fluctuate due to:
o additional premiums allocated to the subaccount;
o transfers into or out of the subaccount;
o partial surrenders and partial surrender fees;
o surrender charges; and/or
o pro rata portions of the monthly deductions
Accumulation unit values will fluctuate due to:
o changes in underlying fund's net asset value;
o dividends distributed to the subaccount;
o capital gains or losses of underlying fund;
o fund 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 and 2
The cost of insurance for any given Policy will vary with age,
sex and health of the Insured.
Policy 3
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.
<PAGE>
Policies 1, 2 and 3
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:
(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.
<PAGE>
(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.
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, 2 and 3
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.
Policy 3
The Policy is a flexible premium 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 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:
<PAGE>
(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.
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.
<PAGE>
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.
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.
<PAGE>
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 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.
<PAGE>
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.
Policy 3
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 first several policy years until the policy value
is sufficient to cover the surrender charge, IDS Life of New
York requires that the owner pay premiums sufficient to keep
the NLG in effect in order to keep the policy in force.
The owner may schedule payments annually, semiannually or
quarterly. (IDS Life of New York must approve payment at any
other interval). IDS Life of New York shows this premium
schedule 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 the cash surrender value is sufficient
to pay the monthly deduction or if sufficient premiums have
been paid to keep the no lapse guarantee 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 payments will affect the policy
value, cash surrender value and length of time the policy will
remain in force, as well as affect whether the NLG remains in
effect.
Premium limitations:
The owner may make unscheduled premium payments at any time
and in any amount of at least $25. 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 maturity date.
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.
<PAGE>
Allocation of premiums:
Until the policy date, IDS Life of New York holds all premiums
in the fixed account and 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) selected in the application. At that time, IDS
Life of New York will begin to assess the various loads, fees,
charges and expenses.
IDS Life of New York converts any amount that the owner
allocates to a subaccount into accumulation units of that
subaccount. Similarly, when the owner transfers value between
subaccounts, IDS Life of New York converts accumulation units
in one subaccount into a cash value, which IDS Life of New
York then converts 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
person whose life the owner proposes to insure (owner or
someone else). The underwriting department of IDS Life of New
York will review the application and any medical information
or other data required to determine whether the proposed
individual is insurable under its underwriting rules. The
application may be declined if IDS Life of New York determines
the individual is not insurable and IDS Life of New York will
return any premium paid.
Age limit: IDS Life of New York generally will not issue a
policy where the proposed insured is over the insurance age of
80. It may, however, do so at its sole discretion.
Keeping The Policy in Force
No lapse guarantee (NLG)
The NLG provides that your policy will remain in force for
five policy years, even if the cash surrender value is
insufficient to pay the monthly deduction. The NLG will stay
in effect as long as:
o the sum of premiums paid; minus
o partial surrenders; minus
o outstanding indebtedness; equals or exceeds
o the minimum monthly premiums due since the policy date.
The minimum monthly premium is shown in the policy.
If, on a monthly date, the owner has not paid enough premiums
to keep the NLG in effect, the no lapse guarantee will
terminate. In addition, the policy will lapse (terminate) if
the cash surrender value is less than the amount needed to pay
the monthly deduction.
The no-lapse guarantee period may be reinstated within 2 years
of its termination if the policy is in force.
Grace period
If on a monthly date the cash surrender value of the policy is
less than the amount needed to pay the next monthly deduction
and the NLG is not in effect, the owner will have 61 days to
pay the required premium amount. If the owner does not pay the
required premium, the policy will lapse.
<PAGE>
IDS Life of New York will mail a notice to the owner's last
known address, requesting payment of the premium needed so
that it can make the next three monthly deductions. If IDS
Life of New York receives this premium before the end of the
61-day grace period, it will use the payment to cover all
monthly deductions and any other charges then due. IDS Life of
New York will add any balance to the policy value and allocate
it 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 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
To be filed by amendment.
Policy 2
To be filed by amendment.
Policy 3
No policy is currently being sold.
(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.
<PAGE>
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.
Policy 3
IDS Life of New York deducts a premium expense charge from
each premium payment. It credits the amount remaining after
the deduction, called the net premium, to the account(s) the
owner has selected. The premium expense charge is 3.5% of each
premium payment. It partially compensates IDS Life of New York
for expenses of distributing the policy, including agents'
commissions, advertising and printing of prospectuses and
sales literature. It also compensates IDS Life of New York for
paying taxes imposed by certain states and governmental
subdivisions on premiums received by insurance companies. All
policies in all states are charged the same premium expense
charge even though state premium taxes vary.
No person other than IDS Life of New York receives any part of
the premiums or the amounts deducted for the mortality and
expense risk charge or other applicable charges. 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.
(j) The substance of any other material provisions of any
indenture or agreement of the trust relating to
insurance.
Not applicable.
<PAGE>
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;
(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).
<PAGE>
(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.
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.
<PAGE>
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:
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.
<PAGE>
<TABLE>
<CAPTION>
Illustration Policies purchased before May 1, 1993
----------------------------------------------------------------------------------------------------------------------
Initial specified amount Male age 35 Current costs assumed
$100,000 Death benefit Option 1 Nonsmoker annual premium $900
----------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value (1)(2) assuming Cash surrender value (1)(2)
accumulated assuming hypothetical gross hypothetical gross annual assuming hypothetical gross
with annual annual investment return of investment return of annual investment return of
End of interest
policy
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>
(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>
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 Option 1 Nonsmoker annual premium $900
----------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value (1)(2) assuming Cash surrender value (1)(2)
accumulated assuming hypothetical gross hypothetical gross annual assuming hypothetical gross
with annual annual investment return of investment return of annual investment return of
End of interest
Policy
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 Option 1 Nonsmoker annual premium $900
-----------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value (1)(2) assuming Cash surrender value (1)(2)
accumulated assuming hypothetical gross hypothetical gross annual assuming hypothetical gross
with annual annual investment return of investment return of annual investment return of
End of interest
policy
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 Option 1 Nonsmoker annual premium $900
----------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value (1)(2) assuming Cash surrender value (1)(2)
accumulated assuming hypothetical gross hypothetical gross annual assuming hypothetical gross
with annual annual investment return of investment return of annual investment return of
End of interest
policy
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.
<PAGE>
Policy 2
Policy illustrations
The following tables illustrate how policy values, cash surrender values and
death benefits may change with the investment experience of the subaccount. The
tables show how these amounts might vary, for a male insurance age 55 and a
female insurance age 55, both nonsmokers, if:
o the annual rate of return of the fund is 0%, 6% or 12%.
o the cost of insurance rates are current rates or guaranteed rates.
This type of 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, we will furnish you with comparable tables illustrating death
benefits, policy values and cash surrender values based on the actual ages of
the persons 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: assumes 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.
Insureds: assumes a male insurance age 55 and a female insurance age 55, in a
standard risk classification, qualifying for the nonsmoker rate. Results would
be lower if one or both of the insureds were in a substandard risk
classification or did not qualify for the non-smoker rate.
Premiums: assumes a $15,000 premium 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: assumes that none have been made. (Since
we assume indebtedness is zero, the cash surrender value in all cases equals the
policy value minus the surrender charge.)
Effect of expenses and charges: The death benefit, policy value and cash
surrender value reflect the following charges:
o Sales charge: 7.25% of all premiums paid.
o Premium tax charge: 1.0% of each premium payment.
o Federal tax charge: 1.25% of each premium payment.
o Cost of insurance charge for the sex, age and risk classification
for each insured.
o Policy fee: $30 per month ($30 per month guaranteed maximum).
o The expenses paid by the fund and charges made against the subaccounts
as described below:
<PAGE>
The net investment return of the subaccounts, shown in the tables, is lower
than the gross, after-tax return of the fund because we deducted expenses
paid by the fund and charges made against the subaccounts. These include:
o the daily investment management fee paid by the funds, assumed to be
equivalent to an annual rate of 0.70% of the fund's aggregate average
daily net assets; the assumed investment management fee is
approximately equal to a simple average of the investment management
fees of the funds available under the policy. The actual charges you
incur will depend on how you choose to allocate policy value. See Fund
expenses in the Loads, fees and charges section of the prospectus for
additional information;
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 paid by the funds, assumed to be
equivalent to an annual rate of 0.1% of each funds aggregate average
daily net assets for direct expenses incurred by the fund; currently,
this is the maximum direct expenses the fund will incur after IDS Life
limits the direct expenses of some funds. The actual charges you incur
will depend on how you choose to allocate policy value. See Fund
expenses in the Loads, fees and charges section of this prospectus for
additional information.
After deduction of the expenses and charges described above, the illustrated
gross annual investment rates of return correspond to the following approximate
net annual rates of return:
Net annual rate of Net annual rate of
return for "Guaranteed return for "Current
Gross annual investment costs assumed" costs assumed"
rate illustration illustration
of return
0% -1.69% -1.69%
6 4.21 4.21
12 10.11 10.11
Taxes: Results shown in the tables reflect the fact that IDS Life of New York
does not currently charge the subaccounts for federal income tax. If we take
such a charge in the future, the portfolios will have to earn more than they do
now in order to produce the death benefits and policy values illustrated.
<PAGE>
<TABLE>
<CAPTION>
Illustration
-------------------------------------- -------------------------------------------------------- --------------------------------
Initial specified amount $1,000,000 Male - Insurance age 55 - Nonsmoker Current costs assumed
Death benefit Option 1 Female - Insurance age 55 - Nonsmoker annual premium $15,000
-------------------------------------- -------------------------------------------------------- --------------------------------
Premium Death benefit Policy Value Cash surrender value
accumulated assuming hypothetical gross Assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
--------- ------------- ------------ ----------- ------------ ---------- ----------- ---------- ----------- ---------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 15,750 $1,000,000 $1,000,000 $1,000,000 $ 12,873 $ 13,658 $ 14,444 $ 8,873 $ 9,658 $ 10,444
2 32,288 1,000,000 1,000,000 1,000,000 25,530 27,894 30,351 21,530 23,894 26,351
3 49,652 1,000,000 1,000,000 1,000,000 37,861 42,613 47,748 33,861 38,613 43,748
4 67,884 1,000,000 1,000,000 1,000,000 49,762 57,726 66,673 45,762 53,726 62,673
5 87,029 1,000,000 1,000,000 1,000,000 61,357 73,370 87,406 57,357 69,370 83,406
6 107,130 1,000,000 1,000,000 1,000,000 72,345 89,348 109,911 68,835 85,748 106,311
7 128,237 1,000,000 1,000,000 1,000,000 83,118 105,796 134,496 79,918 102,596 131,296
8 150,398 1,000,000 1,000,000 1,000,000 93,206 122,528 161,172 90,406 119,728 158,372
9 173,668 1,000,000 1,000,000 1,000,000 102,715 139,571 190,184 100,315 137,171 187,784
10 198,102 1,000,000 1,000,000 1,000,000 111,665 156,958 221,800 109,665 154,958 219,800
11 223,757 1,000,000 1,000,000 1,000,000 119,966 174,619 256,230 118,366 173,019 254,630
12 250,695 1,000,000 1,000,000 1,000,000 127,742 192,687 293,902 126,542 191,487 292,702
13 278,979 1,000,000 1,000,000 1,000,000 134,904 211,101 335,108 134,104 210,301 334,308
14 308,678 1,000,000 1,000,000 1,000,000 141,366 229,807 380,196 140,966 229,407 379,796
15 339,682 1,000,000 1,000,000 1,000,000 147,249 248,938 429,722 147,249 248,938 429,722
20 520,789 1,000,000 1,000,000 1,000,000 167,997 352,728 766,596 167,997 352,728 766,596
25 751,502 1,000,000 1,000,000 1,390,706 157,050 461,226 1,324,482 157,050 461,226 1,324,482
30 1,046,412 1,000,000 1,000,000 2,327,541 53,339 547,683 2,216,705 53,339 547,683 2,216,705
35 1,422,545 0 1,000,000 3,792,346 0 561,352 3,611,758 0 561,352 3,611,758
40 1,902,596 0 1,000,000 6,052,646 0 425,780 5,764,425 0 425,780 5,764,425
45 2,515,277 0 0 9,254,030 0 0 9,162,406 0 0 9,162,406
</TABLE>
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $15,000 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 you should
not consider them to be 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. We can not represent
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 $1,000,000 Male - Insurance age 55 - Nonsmoker Guaranteed costs assumed
Death benefit Option 1 Female - Insurance age 55 - Nonsmoker annual premium $15,000
-------------------------------------- ------------------------------------------------------- ---------------------------------
Premium Death benefit Policy Value Cash surrender value
accumulated assuming hypothetical gross Assuming hypothetical gross assuming hypothetical gross
End of with annual investment return of annual investment return of annual investment return of
policy annual
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 $ 15,750 $1,000,000 $1,000,000 $1,000,000 $ 12,873 $ 13,658 $ 14,444 $ 8,873 $ 9,658 $ 10,444
2 32,288 1,000,000 1,000,000 1,000,000 25,530 27,894 30,351 21,530 23,894 26,351
3 49,652 1,000,000 1,000,000 1,000,000 37,861 42,613 47,748 33,861 38,613 43,748
4 67,884 1,000,000 1,000,000 1,000,000 49,762 57,726 66,673 45,762 53,726 62,673
5 87,029 1,000,000 1,000,000 1,000,000 61,357 73,370 87,406 57,357 69,370 83,406
6 107,130 1,000,000 1,000,000 1,000,000 72,345 89,348 109,911 68,835 85,748 106,311
7 128,237 1,000,000 1,000,000 1,000,000 83,118 105,796 134,496 79,918 102,596 131,296
8 150,398 1,000,000 1,000,000 1,000,000 93,206 122,528 161,172 90,406 119,728 158,372
9 173,668 1,000,000 1,000,000 1,000,000 102,715 139,571 190,184 100,315 137,171 187,784
10 198,102 1,000,000 1,000,000 1,000,000 111,560 156,855 221,701 109,560 154,855 219,701
11 223,757 1,000,000 1,000,000 1,000,000 119,550 174,206 255,834 117,950 172,606 254,234
12 250,695 1,000,000 1,000,000 1,000,000 126,712 191,660 292,919 125,512 190,460 291,719
13 278,979 1,000,000 1,000,000 1,000,000 132,862 209,056 333,162 132,062 208,256 332,362
14 308,678 1,000,000 1,000,000 1,000,000 137,924 226,334 376,912 137,524 225,934 376,512
15 339,682 1,000,000 1,000,000 1,000,000 141,819 243,440 424,586 141,819 243,440 424,586
20 520,789 1,000,000 1,000,000 1,000,000 133,698 318,689 740,657 133,698 318,689 740,657
25 751,502 1,000,000 1,000,000 1,332,763 28,958 338,168 1,269,298 28,958 338,168 1,269,298
30 1,046,412 1,000,000 1,000,000 2,213,730 0 192,246 2,108,314 0 192,246 2,108,314
35 1,422,545 0 1,000,000 3,556,762 0 0 3,387,393 0 0 3,387,393
40 1,902,596 0 1,000,000 5,532,845 0 0 5,269,376 0 0 5,269,376
45 2,515,277 0 0 8,165,971 0 0 8,085,120 0 0 8,085,120
</TABLE>
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $15,000 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 you should
not consider them to be 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. We can not represent
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 $1,000,000 Male - Insurance age 55 - Nonsmoker Current costs assumed
Death benefit Option 2 Female - Insurance age 55 - Nonsmoker annual premium $15,000
-------------------------------------- ------------------------------------------------------- --------------------------------
Premium Death benefit Policy value Cash surrender value
accumulated assuming hypothetical gross Assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of Annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
--------- ------------- ----------- ----------- ----------- ----------- ----------- ---------- ---------- ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 15,750 $1,012,871 $1,013,656 $1,014,442 $ 12,871 $ 13,656 $ 14,442 $ 8,871 $ 9,656 $ 10,442
2 32,288 1,025,525 1,027,888 1,030,345 25,525 27,888 30,345 21,525 23,888 26,345
3 49,652 1,037,847 1,042,598 1,047,730 37,847 42,598 47,730 33,847 38,598 43,730
4 67,884 1,049,725 1,057,682 1,066,621 49,725 57,682 66,621 45,725 53,682 62,621
5 87,029 1,061,283 1,073,280 1,087,296 61,283 73,280 87,296 57,283 69,280 83,296
6 107,130 1,072,292 1,089,168 1,109,685 72,292 89,168 109,685 68,692 85,568 106,085
7 128,237 1,082,878 1,105,481 1,134,085 82,878 105,481 134,085 79,678 102,281 130,885
8 150,398 1,092,812 1,121,993 1,160,449 92,812 121,993 160,449 90,012 119,193 157,649
9 173,668 1,102,104 1,138,711 1,188,975 102,104 138,711 188,975 99,704 136,311 186,575
10 198,102 1,110,766 1,155,644 1,219,882 110,766 155,644 219,882 108,766 153,644 217,882
11 223,757 1,118,690 1,172,680 1,253,285 118,690 172,680 253,285 117,090 171,080 251,685
12 250,695 1,126,006 1,189,945 1,289,563 126,006 189,945 289,563 124,806 188,745 288,363
13 278,979 1,132,607 1,207,327 1,328,880 132,607 207,327 328,880 131,807 206,527 328,080
14 308,678 1,138,386 1,224,708 1,371,418 138,386 224,708 371,418 137,986 224,308 371,018
15 339,862 1,143,475 1,242,210 1,417,630 143,475 242,210 417,630 143,475 242,210 417,630
20 520,789 1,158,144 1,330,920 1,717,417 158,144 330,920 717,417 158,144 330,920 717,417
25 751,502 1,135,016 1,398,674 2,156,241 135,016 398,674 1,156,241 135,016 398,674 1,156,241
30 1,046,412 1,012,373 1,366,625 2,735,967 12,373 366,625 1,735,967 12,373 366,625 1,735,967
35 1,422,545 0 1,085,371 3,399,883 0 85,371 2,399,883 0 85,371 2,399,883
40 1,902,596 0 0 4,166,038 0 0 3,166,038 0 0 3,166,038
45 2,515,277 0 0 4,610,673 0 0 3,610,673 0 0 3,610,673
</TABLE>
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $15,000 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 you should
not consider them to be 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. We can not represent
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 $1,000,000 Male - Insurance age 55 - Nonsmoker Guaranteed costs assumed
Death benefit Option 2 Female - Insurance age 55 - Nonsmoker annual premium $15,000
-------------------------------------- ------------------------------------------------------- ---------------------------------
Premium Death benefit Policy value Cash surrender value
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
--------- -------------- ----------- ---------- ----------- ----------- ---------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 $ 15,750 $1,012,871 $1,013,656 $1,014,442 $ 12,871 $ 13,656 $ 14,442 $ 8,871 $ 9,656 $ 10,442
2 32,288 1,025,525 1,027,888 1,030,345 25,525 27,888 30,345 21,525 23,888 26,345
3 49,652 1,037,847 1,042,598 1,047,730 37,847 42,598 47,730 33,847 38,598 43,730
4 67,884 1,049,725 1,057,682 1,066,621 49,725 57,682 66,621 45,725 53,682 62,621
5 87,029 1,061,283 1,073,280 1,087,296 61,283 73,280 87,296 57,283 69,280 83,296
6 107,130 1,072,292 1,089,168 1,109,685 72,292 89,168 109,685 68,692 85,568 106,085
7 128,237 1,082,878 1,105,481 1,134,085 82,878 105,481 134,085 79,678 102,281 130,885
8 150,398 1,092,812 1,121,993 1,160,449 92,812 121,993 160,449 90,012 119,193 157,649
9 173,668 1,102,104 1,138,711 1,188,975 102,104 138,711 188,975 99,704 136,311 186,575
10 198,102 1,110,648 1,155,522 1,219,756 110,648 155,522 219,756 108,648 153,522 217,756
11 223,757 1,118,218 1,172,186 1,252,769 118,218 172,186 252,769 116,618 170,586 251,169
12 250,695 1,124,832 1,188,697 1,288,238 124,832 188,697 288,238 123,632 187,497 287,038
13 278,979 1,130,268 1,204,803 1,326,162 130,268 204,803 326,162 129,468 204,003 325,362
14 308,678 1,134,428 1,220,367 1,366,663 134,428 220,367 366,663 134,028 219,967 366,263
15 339,862 1,137,214 1,235,241 1,409,875 137,214 235,241 409,875 137,214 235,241 409,875
20 520,789 1,118,740 1,284,564 1,662,467 118,740 284,564 662,467 118,740 284,564 662,467
25 751,502 0 1,227,701 1,937,570 0 227,701 937,570 0 227,701 937,570
30 1,046,412 0 0 2,126,774 0 0 1,126,774 0 0 1,126,774
35 1,422,545 0 0 1,994,219 0 0 994,219 0 0 994,219
40 1,902,596 0 0 1,170,462 0 0 170,462 0 0 170,462
45 2,515,277 0 0 0 0 0 0 0 0 0
</TABLE>
(1) Assumes no policy loans or partial withdrawals have been made.
(2) Assumes a $15,000 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 you should
not consider them to be 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. We can not represent
that these hypothetical rates of return can be achieved for any one year or
sustained over any period of time.
<PAGE>
Policy 3
Policy Illustations
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 the cost of insurance rates and policy fees are current
rates or guaranteed rates and fees.
This type of 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 also would
differ.
Upon request, we will furnish you 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: assumes uniform, gross, after-tax, annual rates of 0%, 6% or
12% for the fund. Results would differ depending on allocations among the
subaccounts, if returns averaged 0%, 6% and 12% for the fund as a whole but
differed across portfolios.
Insured: assumes a male insurance age 35, in a standard risk classification,
qualifying for the nonsmoker rate. Results would be lower if the insured were in
a substandard risk classification or did not qualify for the non-smoker rate.
Premiums: assumes a $900 premium is 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: assumes that none have been made. (Since
we assume indebtedness is zero, the cash surrender value in all cases equals the
policy value minus the surrender charge.)
Effect of expenses and charges
The death benefit, policy value and cash surrender value reflect the following
charges:
o Premium expense charge: 3.5% of each premium payment.
o Cost of insurance charge for the sex, age and rate
classification for the assumed insured.
o Policy fee: $5 per month.
The expenses paid by the fund and charges made against the subaccounts as
described below:
The net investment return of the subaccounts, shown in the tables, is lower than
the gross, after-tax return of the fund or trust because we deducted the
expenses paid by the fund and charges made against the subaccounts. These
include:
<PAGE>
o the daily investment management fee paid by the fund, assumed to be
equivalent to an annual rate of 0.73% of the fund's average daily net
assets; the assumed investment management fee is approximately equal to a
simple average of the investment management fees, based on assets of the
subaccounts, of the funds available under the policy. The actual charges
you incur will depend on how you choose to allocate policy value. See Fund
expenses in the Loads, Fees and Charges section of this prospectus for
additional information;
o the 12b-1 fee, assumed to be equivalent to an annual rate of 0.09% 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 for the first 10 policy
years and 0.45% thereafter, we reserve the right to charge up to 0.9% for
all policy years; and
o a nonadvisory expense charge assumed to be equivalent to an annual rate of
0.17% of each fund's average daily net assets for direct expenses incurred
by the fund. The actual charges you incur will depend on how you choose to
allocate policy value. See Fund expenses in the Loads, Fees, and Charges
section of this prospectus for additional information.
After deduction of the expenses and charges described above, the illustrated
gross annual investment rates of return correspond to the following approximate
net annual rates of return:
<TABLE>
<CAPTION>
Net annual rate of Net annual rate of Net annual rate of
Gross annual investment return for "Guaranteed return for "Current return for "Current
rate costs assumed" costs assumed" costs assumed"
Of return illustration illustration, years 1-10 illustration, years 11
and after
<S> <C> <C> <C>
0% (1.87)% (1.87)% (1.43)%
6 4.02 4.02 4.48
12 9.90 9.90 10.40
</TABLE>
Taxes: Results shown in the tables reflect the fact that IDS Life of New York
does not currently charge the subaccounts for federal income tax. If we take
such a charge in the future, the portfolios will have to earn more than they do
now in order to produce the death benefits and policy values illustrated.
<PAGE>
<TABLE>
<CAPTION>
Illustration
-------------------------------------------------------------------------------------------------------------------------------
Initial specified amount $100,000 Male age 35 Current costs assumed
Death benefit Option 1 nonsmoker Annual premium $900
-------------------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value (1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 $100,000 $100,000 $100,000 $625 $669 $713 $- $- $-
2 1937 $100,000 $100,000 $100,000 $1,231 $1,358 $1,489 $330 $457 $588
3 2979 $100,000 $100,000 $100,000 $1,816 $2,063 $2,331 $915 $1,162 $1,430
4 4073 $100,000 $100,000 $100,000 $2,375 $2,783 $3,243 $1,474 $1,882 $2,342
5 5222 $100,000 $100,000 $100,000 $2,914 $3,522 $4,236 $2,013 $2,621 $3,335
6 6428 $100,000 $100,000 $100,000 $3,427 $4,275 $5,311 $2,706 $3,554 $4,590
7 7694 $100,000 $100,000 $100,000 $3,915 $5,042 $6,477 $3,374 $4,501 $5,937
8 9024 $100,000 $100,000 $100,000 $4,377 $5,825 $7,745 $4,017 $5,465 $7,385
9 10420 $100,000 $100,000 $100,000 $4,813 $6,622 $9,123 $4,633 $6,441 $8,942
10 11886 $100,000 $100,000 $100,000 $5,219 $7,430 $10,618 $5,219 $7,430 $10,618
11 13425 $100,000 $100,000 $100,000 $5,620 $8,286 $12,298 $5,620 $8,286 $12,298
12 15042 $100,000 $100,000 $100,000 $5,991 $9,159 $14,134 $5,991 $9,159 $14,134
13 16739 $100,000 $100,000 $100,000 $6,334 $10,049 $16,145 $6,334 $10,049 $16,145
14 18521 $100,000 $100,000 $100,000 $6,645 $10,956 $18,348 $6,645 $10,956 $18,348
15 20392 $100,000 $100,000 $100,000 $6,923 $11,878 $20,762 $6,923 $11,878 $20,762
16 22356 $100,000 $100,000 $100,000 $7,162 $12,811 $23,409 $7,162 $12,811 $23,409
17 24419 $100,000 $100,000 $100,000 $7,361 $13,753 $26,311 $7,361 $13,753 $26,311
18 26585 $100,000 $100,000 $100,000 $7,511 $14,699 $29,495 $7,511 $14,699 $29,495
19 28859 $100,000 $100,000 $100,000 $7,614 $15,649 $32,994 $7,614 $15,649 $32,994
20 31247 $100,000 $100,000 $100,000 $7,658 $16,594 $36,838 $7,658 $16,594 $36,838
Age 60 45102 $100,000 $100,000 $100,000 $6,836 $21,109 $62,886 $6,836 $21,109 $62,886
Age 65 62785 $100,000 $100,000 $118,793 $3,624 $24,752 $106,341 $3,624 $24,752 $106,341
</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 you should
not consider them to be 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. We cannot represent
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 $100,000 Male age 35 Guaranteed costs assumed
Death benefit Option 1 nonsmoker Annual premium $900
-------------------------------------------------------------------------------------------------------------------------------
Premium Death benefit (1)(2) Policy value (1)(2) Cash surrender value (1)(2)
accumulated assuming hypothetical gross assuming hypothetical gross assuming hypothetical gross
End of with annual annual investment return of annual investment return of annual investment return of
policy interest
year at 5% 0% 6% 12% 0% 6% 12% 0% 6% 12%
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 $100,000 $100,000 $100,000 $625 $669 $713 $- $- $-
2 1937 $100,000 $100,000 $100,000 $1,231 $1,358 $1,489 $330 $457 $588
3 2979 $100,000 $100,000 $100,000 $1,816 $2,063 $2,331 $915 $1,162 $1,430
4 4073 $100,000 $100,000 $100,000 $2,375 $2,783 $3,243 $1,474 $1,882 $2,342
5 5222 $100,000 $100,000 $100,000 $2,914 $3,522 $4,236 $2,013 $2,621 $3,335
6 6428 $100,000 $100,000 $100,000 $3,427 $4,275 $5,311 $2,706 $3,554 $4,590
7 7694 $100,000 $100,000 $100,000 $3,915 $5,042 $6,477 $3,374 $4,501 $5,937
8 9024 $100,000 $100,000 $100,000 $4,377 $5,825 $7,745 $4,017 $5,465 $7,385
9 10420 $100,000 $100,000 $100,000 $4,813 $6,622 $9,123 $4,633 $6,441 $8,942
10 11886 $100,000 $100,000 $100,000 $5,219 $7,430 $10,618 $5,219 $7,430 $10,618
11 13425 $100,000 $100,000 $100,000 $5,594 $8,248 $12,242 $5,594 $8,248 $12,242
12 15042 $100,000 $100,000 $100,000 $5,938 $9,077 $14,008 $5,938 $9,077 $14,008
13 16739 $100,000 $100,000 $100,000 $6,249 $9,915 $15,930 $6,249 $9,915 $15,930
14 18521 $100,000 $100,000 $100,000 $6,525 $10,760 $18,022 $6,525 $10,760 $18,022
15 20392 $100,000 $100,000 $100,000 $6,764 $11,611 $20,300 $6,764 $11,611 $20,300
16 22356 $100,000 $100,000 $100,000 $6,961 $12,462 $22,782 $6,961 $12,462 $22,782
17 24419 $100,000 $100,000 $100,000 $7,112 $13,310 $25,485 $7,112 $13,310 $25,485
18 26585 $100,000 $100,000 $100,000 $7,211 $14,149 $28,432 $7,211 $14,149 $28,432
19 28859 $100,000 $100,000 $100,000 $7,252 $14,973 $31,644 $7,252 $14,973 $31,644
20 31247 $100,000 $100,000 $100,000 $7,229 $15,776 $35,150 $7,229 $15,776 $35,150
Age 60 45102 $100,000 $100,000 $100,000 $5,934 $19,254 $58,392 $5,934 $19,254 $58,392
Age 65 62785 $100,000 $100,000 $117,459 $1,657 $20,822 $96,278 $1,657 $20,822 $96,278
</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 you should
not consider them to be 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. We cannot represent
that these hypothetical rates of return can be achieved for any one year or
sustained over any period of time.
<PAGE>
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.
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:
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. *
(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 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 as an Exhibit to
Amendment No. 4 to the Registration
Statement to form N-8B-2 File No.
811-05213. **
11) Form of Group Vice President Agreement with
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. **
12) Form of IDS Paraplanner License Agreement
with IDS Life Insurance Company of New York.
Filed 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 as an exhibit
to Amendment No. 4 to the Registration
Statement to form N-8B-2 File No.
811-05213. **
<PAGE>
14) (a) 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.*
(b) Flexible Premium Survivorship Variable Life
Insurance: Schedules of Sales Commission filed as an
Exhibit for Policy 2 to Amendment No. 5 to the
Registration Statement to Form N-8B-2 File No.
811-05213.
(c) Flexible Premium Variable Life Insurance: Schedules
of Sales and Commission 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 as an Exhibit for Policy 2 to Amendment
No. 4 to Registration Statement to form N-8B-2 File
No. 811-05213. **
(c) Flexible Premium Life Insurance Policy to be filed by
amendment.
(d) Waiver of Monthly Deduction Rider for Total
Disability to be filed by amendment.
(e) Accidental Death Benefit Rider to be filed by
amendment.
(f) Other Insured Rider to be filed by amendment.
(g) Children's Level Term Insurance Rider to be filed by
amendment.
(h) Automatic Increase Benefit Rider to be filed by
amendment.
(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 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 as an Exhibit to Amendment No. 4 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 as an Exhibit to Amendment No. 4 to
the Registration Statement to form N-8B-2 File No.
811-05213. **
(i) Form of Participation Agreements to be filed by
amendment.
(9) None.
(10) (a) Application form for the Flexible Premium Variable
Life Insurance Policy.*
(b) Application form for Life and Disability Income
Insurance filed as an Exhibit to Amendment No. 4 to
the Registration Statement to form N-8B-2 File No.
811-05213. **
(c) Application form for Flexible Premium Variable Life
Insurance Policy to be filed by amendment.
(11) Code of Ethics to be filed by amendment.
(12) 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.*
(13) IDS Life of New York's Description of Transfer and Redemption
Procedures and Method of Conversion to Fixed Benefit Policies
to be filed by amendment.
<PAGE>
(14) Director's Power of Attorney dated April 14, 1999, filed as
Exhibit 9 to Post-Effective Amendment No. 1 to Registration
Statement, File No. 333-42257 is incorporated herein by
reference.
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.
**All of these exhibits are incorporated by reference to Amendment No. 4 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 28th day of
August, 2000.
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:
/s/ Mary Ellyn Minenko
Mary Ellyn Minenko
Counsel and Assistant Secretary
IDS Life Insurance Company of New York
Attest: /s/ William A. Stoltzmann
William A. Stoltzmann
Counsel and Assistant Secretary
IDS Life Insurance Company of New York
*Signed pursuant to Directors' Power of Attorney dated April 19, 1999 filed as
Exhibit 9 to Post-Effective Amendment No. 1 to Registration Statement, File No.
33-42257.
