<PAGE> 1
As filed with the Securities and Exchange Commission on February 25, 1999
File Nos. 33-19293
811-5474
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES
ACT OF 1933 [ X ]
Pre-Effective Amendment No. ____ [ ]
Post-Effective Amendment No. 11 [ X ]
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940 [ X ]
Amendment No. 12
(Check appropriate box or boxes)
PRESIDENTIAL VARIABLE ACCOUNT ONE
(Exact Name of Registrant)
PRESIDENTIAL LIFE INSURANCE COMPANY
(Name of Depositor)
69 Lydecker Street
Nyack, New York 10960
(Address of Depositor's Principal Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (914) 358-2300
Herbert Kurz, President
Presidential Life Insurance Company
69 Lydecker Street
Nyack, New York 10960
(Name and Address of Agent for Service)
Title of Securities Being Registered
------------------------------------
Flexible Payment
Deferred Annuity Contracts
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b) of Rule 485
-----
on (date) pursuant to paragraph (b) on Rule 485
-----
60 days after filing pursuant to paragraph (a) of Rule 485
-----
X on May 1, 1999 pursuant to paragraph (a) of Rule 485
-----
<PAGE> 2
PRESIDENTIAL VARIABLE ACCOUNT ONE
Cross Reference Sheet
Part A - Prospectus
<TABLE>
<CAPTION>
Item Number in Form N-4 Caption
- ----------------------- -------
<S> <C>
1. Cover Page ............................... Cover Page
2. Definitions .............................. Definitions
3. Synopsis ................................. Highlights; Fee Tables;
Examples; Explanation of
Fee Tables and Examples
4. Condensed Financial Information .......... Condensed Financial
Information - Accumulation
Unit Values
5. General Description of Registrant,
Depositor and Portfolio Companies........ Description of the Company
and the Separate Account;
Anchor Series Trust
6. Deductions ............................... Contract Charges
7. General Description of Variable Annuity
Contracts ................................ Description of the
Contracts
8. Annuity Period ........................... Income Phase
9. Death Benefit ............................ Description of the
Contracts; Income Phase
10. Purchases and Contract Value ............ Purchases and Contract
Value
11. Redemptions ............................. Purchases and Contract
Value
12. Taxes ................................... Taxes
13. Legal Proceedings ....................... Legal Proceedings
14. Table of Contents of Statement
of Additional Information................ Table of Contents of the
Statement of Additional
Information
</TABLE>
<PAGE> 3
Part B - Statement of Additional Information
Certain information required in Part B of the Registration Statement
has been included within the Prospectus forming part of this Registration
Statement. The cross-references suffixed with a "P" are made by reference to
the captions in the Prospectus.
<TABLE>
<CAPTION>
Item Number in Form N-4 Caption
- ----------------------- -------
<S> <C>
15. Cover Page .............................. Cover Page
16. Table of Contents........................ Table of Contents
17. General Information and History.......... Company
18. Services ................................ Not Applicable
19. Purchase of Securities Being Offered .... Purchase Payments(P)
20. Underwriters ............................ Distributors
21. Calculation of Performance Data ......... Yield Calculations for
Money Market Division
22. Annuity Payments ........................ Annuity Payments
23. Financial Statements .................... Financial Statements
</TABLE>
Part C
Information required to be included in Part C is set forth under the
appropriate item, so numbered, in Part C of this Registration Statement.
<PAGE> 4
PROSPECTUS
MAY 1, 1999
FLEXIBLE PAYMENT VARIABLE ANNUITY CONTRACTS
ISSUED BY
PRESIDENTIAL LIFE INSURANCE COMPANY
IN CONNECTION WITH
PRESIDENTIAL VARIABLE ACCOUNT ONE
The annuity has 12 investment choices -- 1 fixed account option and 11
variable investment portfolios listed below. The one year fixed account option
is funded through Presidential Life's General Account. Each of the 11 variable
investment portfolios invest solely in the shares of one of the following
currently available divisions of the Anchor Series Trust:
<TABLE>
<S> <C>
- Foreign Securities Portfolio - Multi-Asset Portfolio
- Capital Appreciation Portfolio - High Yield Portfolio
- Growth Portfolio - Fixed Income Portfolio
- Natural Resources Portfolio - Government and Quality Bond Portfolio
- Growth and Income Portfolio - Money Market Portfolio
- Strategic Multi-Asset Portfolio
</TABLE>
Please read this prospectus carefully before investing and keep it for
future reference. It contains important information about the ICAP contract.
To learn more about the annuity offered by this prospectus, obtain a copy
of the Statement of Additional Information ("SAI") dated May 1, 1999. The SAI is
on file with the Securities and Exchange Commission ("SEC") and is incorporated
by reference into this prospectus. The Table of Contents of the SAI appears on
page 27 of this prospectus. For a free copy of the SAI, call us at (800)
537-3642 or write to us at our Annuity Service Center, P.O. Box 54299, Los
Angeles, California 90054-0299.
In addition, the SEC maintains a website (http://www.sec.gov) that contains
the SAI, materials incorporated by reference and other information filed
electronically with the SEC by Presidential Life.
ANNUITIES INVOLVE RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL. ANNUITIES
ARE NOT A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR ENDORSED BY, ANY BANK. THEY
ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SEC, NOR HAS
THE SEC PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS CRIMINAL.
<PAGE> 5
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
ITEM ----
<S> <C>
DEFINITIONS................................................. 3
SUMMARY..................................................... 4
FEE TABLES.................................................. 7
EXAMPLES.................................................... 8
CONDENSED FINANCIAL INFORMATION -- ACCUMULATION UNIT
VALUES.................................................... 9
PERFORMANCE DATA............................................ 9
DESCRIPTION OF PRESIDENTIAL LIFE, THE SEPARATE ACCOUNT AND
THE GENERAL ACCOUNT....................................... 10
Presidential Life Insurance Company.................... 10
Separate Account....................................... 10
General Account........................................ 11
VARIABLE PORTFOLIO OPTIONS.................................. 11
Equity Portfolios...................................... 11
Managed Portfolios..................................... 11
Fixed Income Portfolios................................ 11
Voting Rights.......................................... 11
Substitution of Securities............................. 12
FIXED ACCOUNT OPTION........................................ 12
Allocations............................................ 12
CONTRACT CHARGES............................................ 12
Insurance Charges...................................... 12
Withdrawal Charges..................................... 12
Investment Charges..................................... 13
Contract Maintenance Fee............................... 13
Transfer Fee........................................... 13
Annuity Charge......................................... 13
Income Taxes........................................... 13
Reduction or Elimination of Charges and Expenses, and
Additional Amounts Credited........................... 13
Free Withdrawal Amount................................. 14
DESCRIPTION OF THE CONTRACTS................................ 14
Summary................................................ 14
Ownership.............................................. 14
Annuitant.............................................. 14
Modification of the Contract........................... 14
Assignment............................................. 14
Death Benefit.......................................... 15
PURCHASES, WITHDRAWALS AND CONTRACT VALUE................... 16
Purchase Payments...................................... 16
Allocation of Purchase Payments........................ 16
Accumulation Units..................................... 16
Free Look.............................................. 17
Transfers During the Accumulation Phase................ 17
Distribution of Contracts.............................. 18
Withdrawals............................................ 18
Minimum Contract Value................................. 19
INCOME PHASE................................................ 19
Annuity Date........................................... 19
Income Options......................................... 19
Transfers During the Income Phase...................... 20
Deferment of Payments.................................. 21
ADMINISTRATION.............................................. 21
TAXES....................................................... 21
General................................................ 22
Withholding Tax on Distributions....................... 22
Diversification........................................ 23
</TABLE>
2
<PAGE> 6
<TABLE>
<CAPTION>
PAGE
ITEM ----
<S> <C>
Multiple Contracts..................................... 23
Tax Treatment on Assignments........................... 23
Tax Treatment of Withdrawals -- Non-Qualified
Contracts............................................. 23
Qualified Plans........................................ 24
Tax Treatment of Withdrawals -- Qualified Contracts.... 25
Tax Sheltered Annuities -- Withdrawal Limitations...... 25
CUSTODIAN................................................... 26
LEGAL PROCEEDINGS........................................... 26
REGISTRATION STATEMENTS..................................... 26
ADDITIONAL INFORMATION ABOUT THE SEPARATE ACCOUNT........... 27
FINANCIAL STATEMENTS........................................ 27
</TABLE>
- --------------------------------------------------------------------------------
DEFINITIONS
- --------------------------------------------------------------------------------
The following terms, as used in this prospectus, have the indicated
meanings:
ACCUMULATION PHASE -- The period during which you invest money in your contract.
ACCUMULATION UNIT -- A unit of measurement which we use to calculate the value
of the variable portion of your contract during the Accumulation Phase.
ANNUITANT(S) -- The person(s) on whose life (lives) we base income payments.
ANNUITY DATE -- The date on which income payments begin, as selected by you.
ANNUITY UNIT(S) -- A measurement we use to calculate the amount of income
payments you receive from the variable portion of your contract during the
Income Phase.
BENEFICIARY -- The person designated to receive any benefits under the contract
if you or the Annuitant dies.
INCOME PHASE -- The period during which we make income payments to you.
IRS -- The Internal Revenue Service.
NON-QUALIFIED (CONTRACT) -- A contract purchased with after-tax dollars. In
general, these contracts are not under any pension plan, specially sponsored
program or individual retirement account ("IRA").
PURCHASE PAYMENTS -- The money you give us to buy the contract, as well as any
additional money you give us to invest in the contract after you own it.
QUALIFIED (CONTRACT) -- A contract purchased with pre-tax dollars. These
contracts are generally purchased under a pension plan, specially sponsored
program or IRA.
TRUST -- Anchor Series Trust, an open-end management investment company.
VARIABLE PORTFOLIO(S) -- The variable investment options available under the
contract. Each Variable Portfolio has its own investment objective and is
invested in the underlying investments of the Trust.
3
<PAGE> 7
- --------------------------------------------------------------------------------
SUMMARY
- --------------------------------------------------------------------------------
This summary sets forth some of the more important points that you should
know and consider before purchasing the ICAP Variable Annuity. The remainder of
the prospectus discusses the topics in more detail. We urge you to read it
carefully and retain it, and the prospectus for the Trust attached hereto, for
future reference.
WHAT IS AN ANNUITY CONTRACT?
An annuity is a contract between you and an insurance company. You are the
owner of the contract. The contract provides three main benefits:
- Tax Deferral: This means that you do not pay taxes on your earnings from
the annuity until you withdraw them.
- Death Benefit: If you die during the Accumulation Phase, the insurance
company pays a death benefit to your Beneficiary.
- Guaranteed Income: If elected, you receive a stream of income for your
lifetime, or another available period you select.
The ICAP Variable Annuity is a contract between you and Presidential Life
Insurance Company (Presidential Life, the Company, Us, We). It is designed to
help you invest on a tax deferred basis and meet long-term financial goals, such
as retirement funding.
Like most annuities, this contract has an Accumulation Phase and an Income
Phase. During the Accumulation Phase, you invest money in your contract. Your
earnings are based on the investment performance of the Variable Portfolios you
allocate money to and/or the interest rate earned on the fixed account option.
During the Income Phase, you will receive income payments from your annuity.
Depending on the option you choose, your payments may be fixed in dollar amount,
may vary with investment performance of the Variable Portfolios or be a
combination of both. Among other factors, the amount of money you are able to
accumulate in your contract during the Accumulation Phase will determine the
amount of your payments during the Income Phase.
WHAT IS THE DIFFERENCE BETWEEN A VARIABLE ANNUITY AND A FIXED ANNUITY?
A fixed annuity earns interest at a fixed rate guaranteed by the insurance
company. A variable annuity typically provides a fixed account option but also
provides Variable Portfolios. The Variable Portfolios are similar to a mutual
fund, but are only available through the purchase of an annuity. Most
significantly, you as the contract owner bear the entire investment risk with
respect to any Purchase Payments allocated to the Variable Portfolios of an
annuity. This means that the value of your contract will go up and down,
depending on the performance of the Variable Portfolios.
The ICAP Variable Annuity is a variable annuity with one fixed account
option and eleven Variable Portfolios.
WHAT ARE THE INVESTMENT OPTIONS AVAILABLE UNDER THE CONTRACT?
You may allocate money to the following Variable Portfolios of the Trust:
<TABLE>
<S> <C>
- Foreign Securities Portfolio - Multi-Asset Portfolio
- Capital Appreciation Portfolio - High Yield Portfolio
- Growth Portfolio - Fixed Income Portfolio
- Natural Resources Portfolio - Government and Quality Bond
- Growth and Income Portfolio Portfolio
- Strategic Multi-Asset Portfolio - Money Market Portfolio
</TABLE>
4
<PAGE> 8
You may also allocate money to the fixed account option for a period of one
year. We call this time period the guarantee period. Presidential Life
guarantees the interest rate credited to money in the fixed account option.
During the Accumulation Phase, you may transfer among the Variable
Portfolios and/or the fixed account option. Fifteen free transfers are permitted
per contract year. After that, we assess a transfer fee.
HOW MAY I ACCESS MY MONEY?
During the Accumulation Phase, you may withdraw money from your contract at
any time. After your first contract year, the first withdrawal you take each
contract year will be free of a withdrawal charge if it does not exceed 10% of
your total Purchase Payments still subject to a withdrawal charge, less prior
withdrawals. You will not get the benefit of a free withdrawal amount upon a
full surrender of your contract.
Withdrawals in excess of these limits may be assessed a withdrawal charge.
Generally, withdrawals may be made from your contract in the amount of $500 or
more. You may request withdrawals in writing or by establishing systematic
withdrawals.
There are no withdrawal charges on that portion of your money invested for
six years or more. Of course, upon a withdrawal you may have to pay income tax.
A 10% IRS penalty tax may also apply if you are under age 59 1/2. Additionally,
we do not assess withdrawal charges upon payment of a death benefit.
CAN I EXAMINE THE CONTRACT?
You may cancel your contract within ten days of your receipt of the
contract by mailing it to our Annuity Service Center. Your contract will be
treated as void on the date we receive it and we will refund an amount equal to
the contract value. Its value may be more or less than the money you initially
invested.
WHAT ARE THE CHARGES AND DEDUCTIONS UNDER A CONTRACT?
Each year, we deduct a $30 contract maintenance fee from your contract. We
also deduct insurance charges which equal 1.40% annually of the average daily
value of your contract allocated to the Variable Portfolios. The insurance
charges include: mortality and expense risk, 1.25%, and administrative expense,
.15%.
As with other professionally managed investments, there are also investment
charges imposed on contracts with money allocated to the Variable Portfolios,
which are estimated to range from .58% to 1.48%.
If you take money out in excess of the free withdrawal amount allowed for
in your contract, you may be assessed a withdrawal charge which is a percentage
of the Purchase Payments you withdraw. A withdrawal charge may be assessed
against the Contract Value when a withdrawal is made within six years of making
the Purchase payment (6% of the amount withdrawn). (See Contract Charges). Each
year, you are allowed to make 15 transfers without charge. After your first 15
free transfers, a $25 transfer fee will apply to each subsequent transfer.
WHAT IS THE DEATH BENEFIT UNDER THE CONTRACT?
If you die during the Accumulation Phase of your contract, your Beneficiary
will receive a death benefit.
5
<PAGE> 9
The death benefit is the greater of:
1. the value of your contract at the time we receive satisfactory proof of
death; or
2. total Purchase Payments less any withdrawals and partial annuitizations
(and any fees or charges applicable to such distributions).
WHAT ARE THE AVAILABLE INCOME OPTIONS UNDER THE CONTRACT?
You can select from one of three income options:
(1) payments for your lifetime, but for not less than 10 or 20 years;
(2) payments for your lifetime and your survivor's lifetime;
(3) payments for a specified period of 5 to 30 years.
You will also need to decide when your income payments begin and if you
want your income payments to fluctuate with investment performance or remain
constant. Once you begin receiving income payments, you cannot change your
income option.
If your contract is part of a Non-qualified retirement plan (one that is
established with after-tax dollars), payments during the Income Phase are
considered partly a return of your original investment. The "original
investment" part of each payment is not taxable as income. For contracts which
are part of a Qualified retirement plan using before-tax dollars, the entire
payment is taxable as income.
6
<PAGE> 10
- --------------------------------------------------------------------------------
FEE TABLES
- --------------------------------------------------------------------------------
OWNER TRANSACTION EXPENSES
<TABLE>
<S> <C>
WITHDRAWAL CHARGE (AS A PERCENTAGE OF AMOUNT WITHDRAWN,
NOT TO EXCEED 9% OF PURCHASE PAYMENTS)...6% for six Contract Years
ANNUAL CONTRACT MAINTENANCE FEE............................. $30
TRANSFER FEE................................................ $25
(no transfer fee applies to the first 15 transfers in a
contract year)
</TABLE>
- --------------------------------------------------------------------------------
ANNUAL SEPARATE ACCOUNT EXPENSES
(AS A PERCENTAGE OF DAILY NET ASSET VALUE)
<TABLE>
<S> <C>
MORTALITY RISK CHARGE....................................... 0.90%
EXPENSE RISK CHARGE......................................... 0.35%
DISTRIBUTION EXPENSE CHARGE................................. 0.15%
----
TOTAL EXPENSE CHARGE................................. 1.40%
====
</TABLE>
- ---------------
ANNUAL TRUST EXPENSES
(AS A PERCENTAGE OF AVERAGE NET ASSETS FOR THE TRUST'S
FISCAL YEAR ENDED DECEMBER 31, 1998):
<TABLE>
<CAPTION>
TOTAL ANNUAL
MANAGEMENT FEE OTHER EXPENSES EXPENSES
-------------- -------------- ------------
<S> <C> <C> <C>
Foreign Securities................................. 0.90% 0.58% 1.48%
Capital Appreciation............................... 0.64% 0.04% 0.68%
Growth............................................. 0.70% 0.05% 0.75%
Natural Resources.................................. 0.75% 0.13% 0.88%
Growth and Income.................................. 0.70% 0.10% 0.80%
Strategic Multi-Asset.............................. 1.00% 0.47% 1.47%
Multi-Asset........................................ 1.00% 0.08% 1.08%
High Yield......................................... 0.70% 0.24% 0.94%
Fixed Income....................................... 0.63% 0.32% 0.95%
Government & Quality Bond.......................... 0.61% 0.06% 0.67%
Money Market....................................... 0.50% 0.08% 0.58%
</TABLE>
- ---------------
THE ABOVE EXPENSES WERE PROVIDED BY THE TRUST.
THE COMPANY HAS NOT VERIFIED THE ACCURACY OF THE INFORMATION.
7
<PAGE> 11
- --------------------------------------------------------------------------------
EXAMPLES
- --------------------------------------------------------------------------------
You would pay the following expenses on a $1,000 investment in each Variable
Portfolio, assuming 5% annual return on assets, and:
(a) surrender of the contract at the end of the applicable time period;
and
(b) if the contract is not surrendered or is switched to the Income
Phase.*
<TABLE>
<CAPTION>
TIME PERIODS
----------------------------------------
VARIABLE PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------------------ ------ ------- ------- --------
<S> <C> <C> <C> <C>
FOREIGN
SECURITIES........................................ A $90 $147 $212 $319
B $29 $ 89 $151 $319
CAPITAL
APPRECIATION...................................... A $84 $128 $180 $253
B $22 $ 69 $118 $253
GROWTH............................................ A $85 $130 $184 $260
B $23 $ 71 $121 $260
NATURAL
RESOURCES......................................... A $86 $133 $189 $271
B $24 $ 74 $127 $271
GROWTH AND
INCOME............................................ A $85 $131 $186 $264
B $23 $ 72 $123 $264
STRATEGIC
MULTI-ASSET....................................... A $90 $147 $213 $322
B $29 $ 90 $152 $322
MULTI-ASSET....................................... A $87 $138 $198 $290
B $26 $ 80 $136 $290
HIGH YIELD........................................ A $86 $133 $188 $270
B $24 $ 74 $126 $270
FIXED
INCOME............................................ A $86 $133 $190 $273
B $24 $ 75 $128 $273
GOVERNMENT AND
QUALITY BOND...................................... A $84 $128 $180 $253
B $22 $ 69 $118 $253
MONEY MARKET...................................... A $83 $124 $174 $239
B $21 $ 65 $111 $239
</TABLE>
* We do not currently charge a withdrawal charge when you elect to begin the
Income Phase.
- ---------------
EXPLANATION OF FEE TABLES AND EXAMPLES
1. The purpose of the fee tables is to show you the various expenses you would
incur directly and indirectly by investing in the contract. The table
reflects expenses of the separate account as well as the Trust. The examples
do not illustrate the tax consequences of surrendering the contract.
2. The examples assume that no transfer fees were imposed. The contracts are
only sold in the state of New York, which does not assess premium taxes.
Accordingly, premium taxes are not reflected.
3. For purposes of the amounts reported in the examples, the contract
maintenance fee is calculated by dividing the total amount of contract
maintenance fees anticipated to be collected during the year by the total net
assets of the separate account's divisions and the related fixed accounts
assets.
4. THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
8
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- --------------------------------------------------------------------------------
CONDENSED FINANCIAL INFORMATION
ACCUMULATION UNIT VALUES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL
YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED ENDED
SEPARATE ACCOUNT DIVISION 12/31/89 12/31/90 12/31/91 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97
------------------------- ----------- -------- -------- --------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Foreign Securities
Beginning AUV.............. $10.47 $13.32 $11.45 $11.26 $ 9.64 $12.39 $11.83 $13.13 $14.43
End AUV.................... $13.32 $11.45 $11.26 $ 9.64 $12.39 $11.83 $13.13 $14.43 $14.08
Ending Number of AUs....... 17,052 24,999 31,241 31,574 38,816 47,472 39,747 35,830 18,506
Capital Appreciation
Beginning AUV.............. $ 9.80 $12.08 $ 9.97 $15.36 $19.09 $22.79 $21.62 $28.68 $35.39
End AUV.................... $12.08 $ 9.97 $15.36 $19.09 $22.79 $21.62 $28.68 $35.39 $43.78
Ending Number of AUs....... 19,098 16,080 15,521 14,406 34,323 35,218 32,160 25,696 14,845
Growth
Beginning AUV.............. $15.43 $19.79 $18.99 $26.36 $27.40 $29.12 $27.36 $34.08 $42.03
End AUV.................... $19.79 $18.99 $26.36 $27.40 $29.12 $27.36 $34.08 $42.03 $54.05
Ending Number of AUs....... 21,562 29,865 30,932 30,390 41,656 41,036 35,168 30,113 21,523
Natural Resources
Beginning AUV.............. $11.02 $12.86 $10.77 $11.13 $11.25 $15.11 $15.05 $17.43 $19.61
End AUV.................... $12.86 $10.77 $11.13 $11.25 $15.11 $15.05 $17.43 $19.61 $17.68
Ending Number of AUs....... 15,862 12,612 9,475 8,347 8,797 10,889 8,124 5,081 3,455
Growth and Income
Beginning AUV.............. $ 9.76 $11.04 $10.50 $13.12 $15.55 $18.70 $16.67 $19.16 $22.69
End AUV.................... $11.04 $10.50 $13.12 $15.55 $18.70 $16.67 $19.16 $22.69 $28.81
Ending Number of AUs....... 24,751 23,408 20,775 21,549 20,694 18,889 6,868 5,788 6,864
Strategic Multi-Asset
Beginning AUV.............. $10.26 $12.13 $11.06 $13.55 $13.88 $15.78 $15.16 $18.35 $20.78
End AUV.................... $12.13 $11.06 $13.55 $13.88 $15.78 $15.16 $18.35 $20.78 $23.43
Ending Number of AUs....... 55,985 49,505 40,079 38,790 41,817 37,667 31,915 28,148 22,997
Multi-Asset
Beginning AUV.............. $10.09 $11.91 $11.93 $14.98 $15.97 $16.90 $16.39 $20.19 $22.67
End AUV.................... $11.91 $11.93 $14.98 $15.97 $16.90 $16.39 $20.19 $22.67 $27.09
Ending Number of AUs....... 53,295 72,163 53,932 43,310 81,114 69,541 48,948 33,152 24,182
High Yield
Beginning AUV.............. $13.00 $12.48 $11.01 $14.44 $16.24 $19.07 $17.96 $21.03 $23.17
End AUV.................... $12.48 $11.01 $14.44 $16.24 $19.07 $17.96 $21.03 $23.17 $25.42
Ending Number of AUs....... 37,759 31,311 11,357 10,343 11,281 11,361 8,181 7,304 6,161
Fixed Income
Beginning AUV.............. $15.08 $16.78 $17.84 $20.31 $21.34 $22.71 $21.67 $25.46 $25.73
End AUV.................... $16.78 $17.84 $20.31 $21.34 $22.71 $21.67 $25.46 $25.73 $27.76
Ending Number of AUs....... 15,964 13,752 9,452 7,850 6,653 6,700 6,759 2,908 2,953
Government &
Quality Bond
Beginning AUV.............. $14.95 $17.04 $18.15 $21.00 $22.13 $23.63 $22.60 $26.60 $26.99
End AUV.................... $17.04 $18.15 $21.00 $22.13 $23.63 $22.60 $26.60 $26.99 $29.16
Ending Number of AUs....... 99,633 97,386 129,211 108,229 46,206 33,336 23,426 15,893 11,372
Money Market
Division
Beginning Unit Value....... $12.78 $13.73 $14.61 $15.23 $15.53 $15.72 $16.10 $16.77 $17.36
Ending Unit Value.......... $13.73 $14.61 $15.23 $15.53 $15.72 $16.10 $16.77 $17.36 $18.00
Ending Number of AUs....... 92,606 97,530 42,418 21,712 12,556 21,881 20,336 15,403 9,842
<CAPTION>
FISCAL
YEAR
ENDED
SEPARATE ACCOUNT DIVISION 12/31/98
------------------------- --------
<S> <C>
Foreign Securities
Beginning AUV.............. [To be
End AUV.................... filed
Ending Number of AUs....... by
Capital Appreciation Amend-
Beginning AUV.............. ment]
End AUV....................
Ending Number of AUs.......
Growth
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Natural Resources
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Growth and Income
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Strategic Multi-Asset
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Multi-Asset
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
High Yield
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Fixed Income
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Government &
Quality Bond
Beginning AUV..............
End AUV....................
Ending Number of AUs.......
Money Market
Division
Beginning Unit Value.......
Ending Unit Value..........
Ending Number of AUs.......
</TABLE>
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AUV -- Accumulation Unit Value.
AU -- Accumulation Units.
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PERFORMANCE DATA
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We advertise the Money Market Portfolio's "yield" and "effective yield."
Both figures are based on historical earnings and are not intended to indicate
future performance. The "yield" of the Money Market Portfolio refers to the net
income generated for a contract funded by an investment in the Money Market
Portfolio over a seven-day period. This income is then "annualized." That is,
the amount of income
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generated by the investment during that week is assumed to be generated each
week over a 52-week period and is shown as a percentage of the investment. The
"effective yield" is calculated similarly but, when annualized, the income
earned by an investment in the Money Market Portfolio is assumed to be
reinvested at the end of each seven-day period. The "effective yield" will be
slightly higher than the "yield" because of the compounding effect of this
assumed reinvestment. Neither the yield nor the effective yield takes into
consideration the effect of any capital changes that might have occurred during
the seven-day period, nor do they reflect the impact of premium taxes or any
withdrawal charges. The impact of other recurring charges on both yield figures
is, however, reflected in them to the same extent it would affect the yield (or
effective yield) for a contract of average size.
In addition, the separate account may advertise "total return" data for its
other Variable Portfolios. Like the yield figures described above, total return
figures are based on historical data and are not intended to indicate future
performance. The "total return" is a computed rate of return that, when
compounded annually over a stated period of time and applied to a hypothetical
initial investment in a Variable Portfolio made at the beginning of the period,
will produce the same contract value at the end of the period that the
hypothetical investment would have produced over the same period (assuming a
complete redemption of the contract at the end of the period). Recurring
contract charges are reflected in the total return figures in the same manner as
they are reflected in the yield data for contracts funded through the Money
Market Portfolio. The effect of applicable withdrawal charges due to the assumed
redemption will be reflected in the return figures, but may be omitted in
additional return figures given for comparison.
The separate account may also advertise an annualized 30-day (or one month)
yield figure for Variable Portfolios other than the Money Market Portfolio.
These yield figures are based upon the actual performance of the Variable
Portfolio over a 30-day (or one month) period ending on a date specified in the
advertisement. Like the total return data described above, the 30-day (or one
month) yield data will reflect the effect of all recurring contract charges (but
will not reflect any withdrawal charges or premium taxes). The yield figure is
derived from net investment gain (or loss) over the period expressed as a
fraction of the investment's value at the end of the period.
More detailed information on the computation of advertised performance data
for the separate account is contained in the SAI.
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DESCRIPTION OF PRESIDENTIAL LIFE, THE SEPARATE ACCOUNT
AND THE GENERAL ACCOUNT
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PRESIDENTIAL LIFE INSURANCE COMPANY
Presidential Life is a stock life insurance company organized under the
laws of the state of New York in 1965. Its principal place of business is 69
Lydecker Street, Nyack, New York 10960. All of the outstanding stock of the
Company is held by Presidential Life Corporation, a publicly owned holding
company. The Company offers life insurance and annuities and is admitted to do
business in 48 states and the District of Columbia.
SEPARATE ACCOUNT
Presidential Life established Presidential Variable Account One (the
"separate account") on August 26, 1987. The separate account is registered with
the SEC as a unit investment trust under the Investment Company Act of 1940, as
amended. Presidential Life owns the assets of the separate account. However, the
assets in the separate account are not chargeable with liabilities arising our
of any other business conducted by Presidential Life. Income, gains and losses
(realized and unrealized), resulting from assets in the separate account are
credited to or charged against the separate account without regard to other
income, gains or losses of Presidential Life.
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GENERAL ACCOUNT
Money allocated to the fixed account option goes into Presidential Life's
general account. The general account consists of all of Presidential Life's
assets other than assets attributable to a separate account. All of the assets
in the general account are chargeable with the claims of any Presidential Life
contract holders as well as all of its creditors. The general account funds are
invested as permitted under state insurance laws.
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VARIABLE PORTFOLIO OPTIONS
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The contract currently offers eleven Variable Portfolios. These Variable
Portfolios invest in shares of the Trust. These Variable Portfolios operate
similarly to a mutual fund but are only available through the purchase of this
annuity contract. The Variable Portfolios are:
<TABLE>
<S> <C>
EQUITY PORTFOLIOS FIXED INCOME PORTFOLIOS
- FOREIGN SECURITIES - HIGH YIELD
- CAPITAL APPRECIATION - FIXED INCOME
- GROWTH - GOVERNMENT AND QUALITY BOND
- NATURAL RESOURCES - MONEY MARKET
- GROWTH AND INCOME
MANAGED PORTFOLIOS
- STRATEGIC MULTI-ASSET
- MULTI-ASSET
</TABLE>
The Trust is an open-end diversified management investment company
registered under the Investment Company Act of 1940. Comprehensive information,
including a discussion of potential risks, is found in the prospectus for the
Trust, attached or enclosed. SAAMCo, an indirect wholly owned subsidiary of
SunAmerica Inc., a member of the American International Group, Inc. family of
financial services companies, is the investment manager for the Trust.
Wellington Management Company, LLP, which is not affiliated with Presidential
Life, serves as sub-adviser for the Trust.
There is no assurance that the investment objective of any of the Variable
Portfolios will be met. The contract owners bear the complete investment risk
for Purchase Payments allocated to a division. Contract values will fluctuate in
accordance with the investment performance of the division(s) to which Purchase
Payments are allocated, and in accordance with the imposition of the fees and
charges assessed under the contracts.
Shares of the Trust are and will be issued and redeemed only in connection
with investments in and payments under variable contracts sold by the company,
Anchor National Life Insurance Company, First SunAmerica Life Insurance Company
and Phoenix Mutual Life Insurance Company. The Company is not affiliated with
such other entities. No disadvantage to contract owners is seen to arise from
the fact that the Trust offers its shares in this fashion.
Additional Variable Portfolios may be established by the Trust from time to
time and may be made available to contract owners. However, there is no
assurance that this will occur.
VOTING RIGHTS
Presidential Life is the legal owner of the Trust's shares. However, when a
Variable Portfolio solicits proxies in conjunction with a vote of shareholders,
we must obtain your instructions on how to vote those shares. We vote all of the
shares we own in proportion to your instructions. Should we determine that we
are no longer required to comply with these rules, we will vote the shares in
our own right.
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SUBSTITUTION OF SECURITIES
If Variable Portfolios become unavailable for investment, we may be
required to substitute shares of another Variable Portfolios. We will seek prior
approval of the SEC and give you notice before substituting shares.
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FIXED ACCOUNT OPTION
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ALLOCATIONS
The contract also offers a fixed account option for a one year period. We
call this time period the guarantee period. The fixed account option pays
interest at rate set and guaranteed by Presidential Life. The interest rate may
differ from time to time and is set at our sole discretion. We will never credit
less than a 4% annual effective rate to the fixed account option. The interest
rate offered for new Purchase Payments may differ from interest rates offered
for subsequent Purchase Payments and money already in the fixed account option.
Rates are established at the beginning of a guarantee period and once
established, the rates for specified payments do not change during the guarantee
period.
When a guarantee period ends, you may leave your money in the fixed
account. You may also reallocate your money to the Variable Portfolios. If you
want to reallocate your money you must contact us within 30 days after the end
of the current guarantee period and instruct us how to reallocate the money. If
we do not hear from you, we will keep your money in the fixed account where it
will earn the renewal interest rate applicable at that time.
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CONTRACT CHARGES
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There are charges and expenses associated with your contract. These charges
and expenses reduce your investment return. We will not increase the contract
maintenance fee and withdrawal charges under your contract. However, the
investment charges under your contract may increase or decrease. Some states may
require that we charge less than the amounts described below.
INSURANCE CHARGES
The amount of this charge is 1.40% annually, of the value of your contract
invested in the Variable Portfolios. We deduct the charge from the Variable
Portfolio's in which you are invested on a pro-rata basis, daily.
The insurance charge compensates us for the mortality and expense risks and
the costs of contract administration we assume. If these charges do not cover
all expenses, we will pay the difference. Likewise, if these charges exceed our
expenses, we will keep the difference.
WITHDRAWAL CHARGES
The contract provides a free withdrawal amount every year. (SEE CONTRACT
CHARGES, FREE WITHDRAWAL AMOUNT, PAGE 14.) If you take money out in excess of
the free withdrawal amount, you may incur a withdrawal charge.
We apply a withdrawal charge against each Purchase Payment you put into the
contract. After a Purchase Payment has been in the contract for six complete
years, no withdrawal charge applies. The withdrawal charge equals a percentage
of Purchase Payments you take out of the contract which are still subject to the
withdrawal charge and not previously withdrawn. The withdrawal charge is 6% of
the amount withdrawn if such withdrawal is made within six years of making the
Purchase Payment. The withdrawal charge shall not exceed 9% of total Purchase
Payment.
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When calculating the withdrawal charge, we treat withdrawals as coming
first from the Purchase Payments that have been in your contract the longest.
However, for tax purposes, your withdrawals are considered earnings first, then
Purchase Payments.
Whenever possible, we deduct the withdrawal charge from the money remaining
in your contract. If you withdraw all of your contract value, applicable
withdrawal charges are deducted from the amount withdrawn.
We do not assess a withdrawal charge for money withdrawn to pay a death
benefit. Withdrawals made prior to age 59 1/2 may result in a 10% IRS penalty
tax. SEE TAXES, PAGE 21.
INVESTMENT CHARGES
Charges are deducted from the Variable Portfolios for the advisory and
other expenses of the underlying Variable Portfolios. THE FEE TABLES LOCATED AT
PAGE 7 illustrate these charges and expenses. For more detailed information on
these investment charges, refer to the attached prospectus for the Trust.
CONTRACT MAINTENANCE FEE
During the Accumulation Phase, we subtract a $30 contract maintenance fee
from your account, on a pro-rata basis, once per contract year. This charge
compensates us for the cost of contract administration. We deduct the fee on
your contract anniversary. If you withdraw your entire contract value, the fee
is deducted from that withdrawal.
TRANSFER FEE
The contract currently provides for 15 free transfers between investment
options each contract year. After that, a charge of $25 applies to each
additional transfer in any one contract year. SEE TRANSFERS DURING THE
ACCUMULATION PHASE, PAGE 17.
ANNUITY CHARGE
If you elect to have your income payments made under income option 1, Life
Annuity with 10 or 20 Years Guaranteed, or income option 2, Joint and Survivor
Life Annuity, we do not assess an annuity charge. If you elect income option 3,
Income for a Specified Period, and if your Purchase Payments were made in the
contract year in which income payments begin or in any of the four preceding
contract years, we may assess an annuity charge. This annuity charge equals the
withdrawal charge that would apply if your contract was being surrendered. If
income option 3 is elected by your Beneficiary under the death benefit, we will
not assess an annuity charge. Under certain income options, we will assess the
annuity charge against the portion of your contract in the fixed account.
INCOME TAXES
We do not currently deduct income taxes from your contract. We reserve the
right to do so in the future.
REDUCTION OR ELIMINATION OF CHARGES AND EXPENSES, AND ADDITIONAL AMOUNTS
CREDITED
Sometimes sales of the contracts to groups of similarly situated
individuals may lower our administrative and/or sales expenses. We reserve the
right to reduce or waive certain charges and expenses when this type of sale
occurs. In addition, we may also credit additional interest to policies sold to
such groups. We determine which groups are eligible for such treatment. Some of
the criteria used to make a determination are: size of the group; amount of
expected Purchase Payments; relationship existing between us and prospective
purchaser; nature of the purchase; length of time a group of contracts is
expected to remain active; purpose of the purchase and whether that purpose
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increases the likelihood that our expenses will be reduced; and/or any other
factors that we believe indicate that administrative and/or sales expenses may
be reduced.
We may make such a determination regarding sales to our employees, our
affiliates' employees and employees of currently contracted broker-dealers, our
registered representatives and immediate family members of all of those
described.
We reserve the right to change or modify any such determination or the
treatment applied to a particular group, at any time.
FREE WITHDRAWAL AMOUNT
Your contract provides for a free withdrawal amount. Purchase Payments that
are no longer subject to a withdrawal charge and not previously withdrawn, plus
earnings, may be withdrawn without penalty.
After the first full contract year, the contract provides for a free
withdrawal amount on your first withdrawal of each contract year. The free
withdrawal amount is equal to 10% of your total Purchase Payments still subject
to a withdrawal charge, less prior withdrawals.
We will waive the withdrawal charge upon payment of a death benefit.
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DESCRIPTION OF THE CONTRACTS
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SUMMARY
This contract works in two stages, the Accumulation Phase and the Income
Phase. Your contract is in the Accumulation Phase while you make payments into
the contract. The Income Phase begins when you request that we begin making
payments to you out of the money accumulated in your contract.
OWNERSHIP
You, as the contract owner, are entitled to the rights and privileges of
the contract. If you die during the Accumulation Phase, your Beneficiary will
become the owner of the contract, unless you elect otherwise. Joint owners have
equal ownership interests in the contract unless we advise otherwise in writing.
Only spouses may be joint owners.
ANNUITANT
The annuitant is the person on whose life we base income payments. You may
change the Annuitant at any time before the Annuity Date. You may also designate
a second person on whose life, together with the annuitant, income payments
depend. If the annuitant dies before the Annuity Date, you must notify us and
select a new annuitant.
MODIFICATION OF THE CONTRACT
Only the Company's President, a Vice President or Secretary may approve a
change or waive a provision of the contract. Any change or waiver must be in
writing. We reserve the right to modify the terms of the contract as necessary
to comply with changes in applicable law.
ASSIGNMENT
Contracts issued pursuant to Non-qualified plans that are not subject to
Title 1 of the Employee Retirement Income Security Act of 1974 ("ERISA") may be
assigned by the owner at any time during the lifetime of the Annuitant prior to
the Annuity Date. We will not be bound by any
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assignment until written notice is received by us at our Annuity Service Center.
We are not responsible for the validity, tax or other legal consequences of any
assignment. An assignment will not affect any payments we may make or actions we
may take before we receive notice of the assignment.
If the contract is issued pursuant to a Qualified plan (or a Non-qualified
plan that is subject to Title 1 of ERISA), it may not be assigned, pledged or
otherwise transferred except under such conditions as may be allowed under
applicable law.
BECAUSE AN ASSIGNMENT MAY BE A TAXABLE EVENT, YOU SHOULD CONSULT A
COMPETENT TAX ADVISER SHOULD YOU WISH TO ASSIGN YOUR CONTRACT.
DEATH BENEFIT
If you die during the Accumulation Phase of your contract, we pay a death
benefit to your Beneficiary.
The death benefit is equal to the greater of:
1. the value of your contract at the time we receive satisfactory proof of
death; or
2. total Purchase Payments less any withdrawals and partial annuitizations
(and any fees or charges applicable to such distributions).
We do not pay the death benefit if you die after you switch to the Income
Phase. However, if you die during the Income Phase, your Beneficiary receives
any remaining guaranteed income payments in accordance with the income option
you selected. (SEE INCOME PHASE, INCOME OPTIONS, PAGE 19.)
You name your Beneficiary. You may change the Beneficiary at any time,
unless you previously made an irrevocable Beneficiary designation.
We pay the death benefit when we receive satisfactory proof of death. We
consider the following satisfactory proof of death:
1. a certified copy of the death certificate; or
2. a certified copy of a decree of a court of competent jurisdiction as to
the finding of death; or
3. a written statement by a medical doctor who attended the deceased at the
time of death; or
4. any other proof satisfactory to us.
We may require additional proof before we pay the death benefit.
The death benefit payment must begin immediately upon receipt of all
necessary documents. In any event, the death benefit must be paid within 5 years
of the date of death unless the Beneficiary elects to have it payable in the
form of an income option. If the Beneficiary elects an income option, it must be
paid over the Beneficiary's lifetime or for a period not extending beyond the
Beneficiary's life expectancy. Payments must begin within one year of the date
of your death. If a Beneficiary does not elect a specific form of pay out within
60 days of our receipt of proof of death, we pay a lump sum death benefit to the
Beneficiary.
If the Beneficiary is the spouse of a deceased owner, he or she can elect
to continue the contract at the then current value. If the Beneficiary/spouse
continues the contract, we do not pay a death benefit to him or her.
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PURCHASES, WITHDRAWALS AND CONTRACT VALUE
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PURCHASE PAYMENTS
A Purchase Payment is the money you give us to buy a contract. Any
additional money you give us to invest in the contract after purchase is a
subsequent Purchase Payment.
This chart shows the minimum initial and subsequent Purchase Payments
permitted under your contract. These amounts depend upon whether your contract
is Qualified or Non-qualified for tax purposes. SEE TAXES, PAGE 21.
<TABLE>
<S> <C> <C>
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MINIMUM
MINIMUM INITIAL SUBSEQUENT
PURCHASE PAYMENT PURCHASE PAYMENT
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Qualified $100 N/A
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Non-Qualified $1,000 $500
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</TABLE>
Prior Company approval is required to accept Purchase Payments greater than
$1,000,000. Also, the optional automatic payment plan allows you to make
subsequent Purchase Payments of as little as $25.00.
We may refuse any Purchase Payment. In general, Presidential Life will not
issue a Qualified contract to anyone who is age 70 1/2 or older, unless you
certify the minimum distribution required by the IRS is being made. In addition,
we may not issue a contract to anyone over age 80.
ALLOCATION OF PURCHASE PAYMENTS
We invest your Purchase Payments in the fixed and variable investment
options according to your instructions. If we receive a Purchase Payment without
allocation instructions, we invest the money according to your last allocation
instructions. SEE VARIABLE PORTFOLIO OPTIONS, PAGE 11 AND FIXED ACCOUNT OPTION,
PAGE 12.
In order to issue your contract, we must receive your completed
application, Purchase Payment allocation instructions and any other required
paperwork at our principal place of business. We allocate your initial Purchase
Payment within two days of receiving it. If we do not have complete information
necessary to issue your contract, we will contact you. If we do not have the
information necessary to issue your contract within 5 business days we will:
- Send your money back to you, or;
- Ask your permission to keep your money until we get the information
necessary to issue the contract.
ACCUMULATION UNITS
When you allocate a Purchase Payment to the Variable Portfolios, we credit
your contract with Accumulation Units of the separate account based upon the
Accumulation Unit Value ("AUV") next determined after receipt. We determine the
number of Accumulation Units credited by dividing the Purchase Payment by the
AUV for the specific Variable Portfolio. The value of an Accumulation Unit will
go up and down based on the performance of the Variable Portfolios.
We calculate the value of an Accumulation Unit each day that the New York
Stock Exchange ("NYSE") is open as follows:
1. We determine the total value of money invested in a particular Variable
Portfolio;
2. We subtract from that amount all applicable contract charges; and
3. We divide this amount by the number of outstanding Accumulation Units.
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We determine the number of Accumulation Units credited to your contract by
dividing the Purchase Payment by the Accumulation Unit value for the specific
Variable Portfolio.
EXAMPLE:
We receive a $25,000 Purchase Payment from you on Wednesday. You allocate
the money to the Multi-Asset Portfolio. The value of an Accumulation Unit
for the Multi-Asset Portfolio is $11.10 when the NYSE closes on Wednesday.
Your Purchase Payment of $25,000 is then divided by $11.10 and we credit
your contract on Wednesday night with 2252.52 Accumulation Units of the
Multi-Asset Portfolio.
Performance of the Variable Portfolios and the charges and expenses under
your contract affect Accumulation Unit values. These factors cause the value of
your contract to go up and down.
FREE LOOK
You may cancel your contract within ten days after receiving it.
Presidential Life calls this a "free look." To cancel, you must mail the
contract along with your free look request to the Annuity Service Center at P.O.
Box 54299, Los Angeles, California 90054-0299. We will refund the value of your
contract on the day we receive your request. The amount refunded to you may be
more or less than the amount you originally invested. All contracts issued as an
IRA require the full return of Purchase Payments upon a free look.
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase you may transfer funds between the Variable
Portfolios and/or the fixed account option. You must transfer at least $500. If
less than $500 will remain in any Variable Portfolio after a transfer, that
amount must be transferred as well. Transfers from the fixed account option may
only be made once each contract year and must be requested during the 30-day
period following the end of the applicable 1-year guarantee period.
You may request transfers of your account value between the Variable
Portfolios and/or the fixed account option in writing or by telephone. We
currently allow 15 free transfers per contract per year. A charge of $25 for
each additional transfer in any contract year applies after the first 15
transfers. We may also assess a $25 fee if you move all your money from a
Variable Portfolio to another Variable Portfolio within 30 days of the contract
issue date.
We accept transfer requests by telephone unless you specify not to on your
contract application. Additionally, in the future you may be able to execute
transfers or other financial transactions over the internet. When receiving
instructions over the telephone, we follow appropriate procedures to provide
reasonable assurance that the transactions executed are genuine. Thus, we are
not responsible for any claim, loss or expense from any error resulting from
instructions received over the telephone.
Telephone calls authorizing transfers will be processed on the next
business day. The company reserves the right to terminate or modify the
telephone transfers service at any time.
Upon implementation of internet account transfers we will have appropriate
procedures in place to provide reasonable assurance that the transactions
executed are genuine. Thus, Presidential Life would not be responsible for any
claim, loss or expense from any error resulting from instructions received over
the internet. If we fail to follow any procedures, we may be liable for any
losses due to unauthorized or fraudulent instructions.
We may limit the number of transfers in any contract year or refuse any
transfer request for you or others invested in the contract if we believe that
excessive trading or a specific transfer request or group transfer requests may
have a detrimental effect on unit values or the share prices of the underlying
Variable Portfolios; or
Where permitted by law, we may accept your authorization for a third party
to make transfers for you subject to certain rules. We reserve the right to
suspend or cancel such acceptance at any time
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and will notify you accordingly. Additionally, we may restrict the investment
options available for transfers during any period in which such third party acts
for you. We will notify such third party beforehand regarding any restrictions.
However, we will not enforce these restrictions if we are satisfied that such
third party has been appointed by a court of competent jurisdiction to act on
your behalf.
We may provide administrative or other support services to independent
third parties you authorize to make transfers on your behalf. We do not
currently charge extra for providing these support services. This includes, but
is not limited to, transfers between investment options in accordance with
market timing strategies. Such independent third parties may or may not be
appointed with us for the sale of annuities. However, WE DO NOT ENGAGE ANY THIRD
PARTIES TO OFFER INVESTMENT ALLOCATION SERVICES OF ANY TYPE. WE TAKE NO
RESPONSIBILITY FOR THE INVESTMENT ALLOCATION AND TRANSFERS TRANSACTED ON YOUR
BEHALF BY SUCH THIRD PARTIES OR FOR ANY INVESTMENT ALLOCATION RECOMMENDATIONS
MADE BY SUCH PARTIES.
For information regarding transfers during the Income Phase, SEE INCOME
PHASE, TRANSFERS DURING THE INCOME PHASE, PAGE 20.
We reserve the right to modify, suspend, waive or terminate these transfer
provisions at any time.
DISTRIBUTION OF CONTRACTS
Currently, the Contracts will only be made available in the State of New
York.
The Contracts are sold by licensed insurance agents, who are registered
representatives of broker-dealers which are registered under the Securities
Exchange Act of 1934, as amended, and are members of the National Association of
Securities Dealers, Inc.
From time to time, we may pay or allow additional promotional incentives in
the form of cash or other compensation. We reserve the right to offer these
additional incentives only to certain broker-dealers that sell or are expected
to sell, certain minimum amounts of the contract, or other contracts offered by
us. Promotional incentives may change at any time.
SunAmerica Capital Services, Inc., 733 Third Avenue, 4th Floor, New York,
New York 10017 distributes the contracts. SunAmerica Capital Services an
indirect wholly owned subsidiary of SunAmerica Inc., is registered as a
broker-dealer under the Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc.
WITHDRAWALS
You can access money in your contract in two ways:
- by making a partial or total withdrawal, and/or;
- by receiving income payments during the Income Phase. (SEE INCOME PHASE,
PAGE 19.)
Generally, we deduct a withdrawal charge applicable to any total or partial
withdrawal. If you withdraw your entire contract value, a deduction for the
contract maintenance fee also occurs. (SEE CONTRACT CHARGES, WITHDRAWAL CHARGES,
PAGE 12.)
Under most circumstances, the partial withdrawal minimum is $500. We
require that the value left in any investment option be at least $500 after the
withdrawal. You must send a written withdrawal request. Unless you provide
different instructions, partial withdrawals will be made pro rata from each
Variable Portfolio and the fixed account option in which your contract is
invested.
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Under certain Qualified plans, access to the money in your contract may be
restricted. Additionally, withdrawals made prior to age 59 1/2 may result in a
10% IRS penalty tax. (SEE TAXES ON PAGE 21.)
We may be required to suspend or postpone the payment of a withdrawal for
any period of time when: (1) the NYSE is closed (other than customary weekend
and holiday closings); (2) trading with the NYSE is restricted; (3) an emergency
exists such that disposal of or determination of the value of shares of the
Variable Portfolios is not reasonably practicable; (4) the SEC, by order, so
permits for the protection of contract owners.
Additionally, we reserve the right to defer payments for a withdrawal from
the fixed account option. Such deferrals are limited to no longer than six
months.
MINIMUM CONTRACT VALUE
Where permitted by state law, we may terminate your contract if both of the
following occur: (1) your contract is less than $500 as a result of withdrawals;
and (2) you have not made any Purchase Payments during the past three years. We
will provide you with sixty days written notice. At the end of the notice
period, we will distribute the contract value to you.
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INCOME PHASE
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ANNUITY DATE
During the Income Phase, we use the money accumulated in your contract to
make regular income payments to you. You select the month and year in which you
want income payments to begin. The first day of that month is the Annuity Date.
You may change your Annuity Date, so long as you do so at least seven days
before the income payments are scheduled to begin. Once you begin receiving
income payments, you cannot change your income option. Except as discussed under
Option 3 below, once you begin receiving income payments, you cannot otherwise
access your money through a withdrawal or surrender.
Income payments must begin on or before the Annuitant's 85th birthday. If
you named joint Annuitants on your contract, the income payments may not be
later than the first day of the month following the 85th birthday of the younger
Annuitant. If you do not choose an Annuity Date, your income payments will
automatically begin on this date.
If the Annuity Date is past your 85th birthday, your contract could lose
its status as an annuity under Federal tax laws. This may cause you to incur
adverse tax consequences.
In addition, most Qualified contracts require you to take minimum
distributions after you reach age 70 1/2. (SEE TAXES, PAGE 21.)
INCOME OPTIONS
Currently, this contract offers three income options. If you elect to
receive income payments but do not select an option, your income payments will
be made monthly and in accordance with option 1 for a period of 10 years.
We base our calculation of income payments on the life of the Annuitant and
the annuity rates set forth in your contract. As the contract owner, you may
change the Annuitant at any time prior to the Annuity Date. You must notify us
if the Annuitant dies before the Annuity Date and designate a new Annuitant.
OPTION 1 -- LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED
This option provides income payments for the longer of (1) the life of the
Annuitant or (2) 10 or 20 years, depending on the number of years you select.
Under this option, we guarantee that income
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payments will be made for at least 10 or 20 years. If the Annuitant dies before
all guaranteed income payments are made, the remaining income payments go to the
Beneficiary under your contract.
OPTION 2 -- JOINT AND SURVIVOR LIFE ANNUITY
This option provides income payments for the life of the Annuitant and for
the life of another designated person. Upon the death of either person, we will
continue to make income payments during the lifetime of the survivor. Income
payments stop whenever the survivor dies.
OPTION 3 -- INCOME FOR A SPECIFIED PERIOD
This option provides income payments for a guaranteed period ranging from 5
to 30 years. If the Annuitant dies before all of the guaranteed income payments
are made, the remaining income payments will be made to the Beneficiary under
your contract. Additionally, if variable income payments are elected under this
option, you (or the Beneficiary under the contract if the Annuitant dies prior
to all guaranteed payments being made) may redeem the contract value after the
Annuity Date. The amount available upon such redemption will be the discounted
present value of any remaining guaranteed payments.
The value of an Annuity Unit, regardless of the option chosen, takes into
account the Mortality and Expense Risk Charge. Since Option 3 does not contain
an element of mortality risk, no benefit is derived from this charge.
Please read the SAI for a more detailed discussion of the income options.
You can choose income payments that are fixed, variable or both. If at the
date when income payments begin you are invested in the Variable Portfolios
only, your income payments will be variable. If your money is only in the fixed
account at that time, your income payments will be fixed in amount. Further, if
you are invested in both the fixed and variable investment options when payments
begin your payments will be fixed and variable. If income payments are fixed,
Presidential Life guarantees the amount of each payment. If the income payments
are variable, the amount is not guaranteed. You may send us a written request to
convert variable income payments to fixed income payments. However, you may not
convert fixed income payments to variable income payments.
We make income payments on a monthly basis. You instruct us to send you a
check or to have the payments directly deposited into your bank account. If
state law allows, we distribute annuities with a contract value of $2,000 or
less in a lump sum. Also, if the selected income option results in income
payments of less than $20 per payment, the frequency of your payments may be
decreased, state law allowing.
If you are invested in the Variable Portfolios after the Annuity Date your
income payments vary depending on four things:
- for life options, your age when payments begin, and;
- the value of your contract in the Variable Portfolios on the Annuity
Date, and;
- the 5% assumed investment rate used in the annuity table for the
contract, and;
- the performance of the Variable Portfolios in which you are invested
during the time you receive income payments.
If you are invested in both the fixed account options and the Variable
Portfolios after the Annuity Date, the allocation of funds between the fixed and
variable options also impacts the amount of your income payments.
TRANSFERS DURING THE INCOME PHASE
During the Income Phase, you may transfer funds to the fixed account and/or
among the Variable Portfolios. Transfers during the Income Phase are subject to
the following limitations:
(1) You may not transfer funds to a Variable Portfolio during the first
year your contract is in the Income Phase. After the first year, you
may only make one transfer per Variable Portfolio during each contract
year.
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<PAGE> 24
(2) When you make a transfer, you must transfer the entire value of a
Variable Portfolio.
(3) Your transfer request must be in writing. We must receive your transfer
request during the 45 days preceding your contract anniversary. Amounts
are transferred at the next Annuity Unit value calculation date.
(4) You may not transfer funds from the fixed account option. However,
amounts may be transferred from the Variable Portfolios to the fixed
account option.
(5) We reserve the right to modify, suspend or terminate this transfer
privilege at any time.
DEFERMENT OF PAYMENTS
We may defer making fixed income payments for up to six months, or less if
required by law. Interest is credited to you during the deferral period.
- --------------------------------------------------------------------------------
ADMINISTRATION
- --------------------------------------------------------------------------------
While the Company has primary responsibility for all administration of the
Contracts and the Separate Account, it has retained the services of First
SunAmerica Life Insurance Company ("First SunAmerica"), 733 Third Avenue, 4th
Floor, New York, New York 10017; (800) 537-3642 to administer its Annuity
Service Center. First SunAmerica is not affiliated with the Company. First
SunAmerica is an indirect wholly owned subsidiary of SunAmerica Inc., a member
of the AIG family of financial services companies.
The administrative services provided include, but are not limited to:
issuance of the Contracts; maintenance of Contract Owner records; Contract Owner
services; calculation of unit values; and preparation of Contract Owner reports.
We send out transaction confirmations and quarterly statements. It is your
responsibility to review these documents carefully and notify us of any
inaccuracies immediately. We investigate all inquiries. To the extent that we
believe we made an error, we retroactively adjust your contract, provided you
notify us within 30 days of receiving the transaction confirmation or quarterly
statement. Any other adjustments we deem warranted are made as of the time we
receive notice of the error.
The Company initiated the process of preparing its computer systems and
applications for the Year 2000 in 1994. This process involves modifying or
replacing certain hardware and software maintained by the Company as well as
communicating with external service providers to ensure that they are taking the
appropriate action to remedy their Year 2000 issues. The modification process of
all significant applications will be completed by December 31, 1998. Management
expects to have substantially all of the system and application changes
completed during the second half of 1999.
- --------------------------------------------------------------------------------
TAXES
- --------------------------------------------------------------------------------
NOTE: WE PREPARED THE FOLLOWING INFORMATION ON TAXES AS A GENERAL
DISCUSSION OF THE SUBJECT. IT IS NOT TAX ADVICE. WE CAUTION YOU TO SEEK
COMPETENT TAX ADVICE ABOUT YOUR OWN CIRCUMSTANCES. WE DO NOT GUARANTEE THE TAX
STATUS OF YOUR ANNUITY. TAX LAWS CONSTANTLY CHANGE, THEREFORE WE CANNOT
GUARANTEE THAT THE INFORMATION CONTAINED HEREIN IS COMPLETE AND/OR ACCURATE.
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<PAGE> 25
GENERAL
From time to time, Federal initiatives are proposed that could affect the
tax treatment of insurance products. Recent administration budget proposals
include the proposed taxation of exchanges involving variable annuity contracts,
reallocations within variable annuity contracts, and certain other proposals
relating to annuities. Please consult your tax advisor for additional
information.
A Contract Owner is not taxed on increases in the value of a Contract until
distribution occurs, either in the form of a lump sum payment or as annuity
payments under the annuity option elected. For a lump sum payment received as a
total surrender (total redemption), the recipient is taxed on the portion of the
payment that exceeds the cost basis of the Contract. For a payment received as a
withdrawal (partial redemption), federal tax liability is determined on a
last-in-first-out basis, meaning taxable income is withdrawn before the cost
basis of the Contract is withdrawn. For Non-Qualified Contracts, the cost basis
is generally the Purchase Payments, while for Qualified Contracts there may be
no cost basis. The taxable portion of the lump sum payment is taxed at ordinary
income tax rates. Tax penalties may also apply.
For annuity payments, the taxable portion is determined by a formula which
establishes the ratio that the cost basis of the Contract bears to the total
value of annuity payments for the term of the annuity Contract. The taxable
portion is taxed at ordinary income tax rates. For certain types of Qualified
Plans there may be no cost basis in the Contract within the meaning of Section
72 of the Code. Contract Owners, Annuitants and Beneficiaries under the
Contracts should seek competent financial advice about the tax consequences of
distributions under the retirement plan under which the Contracts are purchased.
The Company is taxed as a life insurance company under the Code. For
federal income tax purposes, the Separate Account is not a separate entity from
the Company and its operations form a part of the Company.
WITHHOLDING TAX ON DISTRIBUTIONS
The Code generally requires the Company (or, in some cases, a plan
administrator) to withhold tax on the taxable portion of any distribution or
withdrawal from a Contract. For "eligible rollover distributions" from Contracts
issued under certain types of Qualified Plans, 20% of the distribution must be
withheld, unless the payee elects to have the distribution "rolled over" to
another eligible plan in a direct "trustee to trustee" transfer. This
requirement is mandatory and cannot be waived by the Contract Owner. Withholding
on other types of distributions can be waived.
An "eligible rollover distribution" is the estimated taxable portion of any
amount received by a covered employee from a plan qualified under section 401(a)
or 403(a) of the Code, or from a tax-sheltered annuity qualified under section
403(b) of the Code (other than (1) annuity payments for the life (or life
expectancy) of the employee, or joint lives (or joint life expectancies) of the
employee and his or her designated beneficiary, or for a specified period of ten
years or more; and (2) distributions required to be made under the Code).
Failure to "roll over" the entire amount of an eligible rollover distribution
(including an amount equal to the 20% portion of the distribution that was
withheld) could have adverse tax consequences, including the imposition of a
penalty tax on premature withdrawals, described later in this section.
Withdrawals or distributions from a Contract other than eligible rollover
distributions are also subject to withholding on the estimated taxable portion
of the distribution, but the Contract Owner may elect in such cases to waive the
withholding requirement. If not waived, withholding is imposed (1) for periodic
payments, at the rate that would be imposed if the payments were wages, or (2)
for other distributions at 10%. If no withholding exemption certificate is in
effect for the payee, the rate under (1) above is computed by treating the payee
as a married individual claiming 3 withholding exemptions.
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<PAGE> 26
DIVERSIFICATION
Section 817(h) of the Code imposes certain diversification standards on the
underlying assets of variable annuity contracts. The Code provides that a
variable annuity contract will not be treated as an annuity contract for any
period (and any subsequent period) for which the investments are not adequately
diversified, in accordance with regulations prescribed by the United States
Treasury Department ("Treasury Department"). Disqualification of the Contract as
an annuity contract would result in imposition of federal income tax to the
Contract Owner with respect to earnings allocable to the Contract prior to the
receipt of payments under the Contract. The Code contains a safe harbor
provision which provides that annuity contracts such as the Contracts meet the
diversification requirements if, as of the close of each quarter, the underlying
assets meet the diversification standards for a regulated investment company,
and no more than fifty-five percent (55%) of the total assets consist of cash,
cash items, U.S. Government securities and securities of other regulated
investment companies.
On March 2, 1989, the Treasury Department issued Regulations (Treas. Reg.
Section 1.817-5), which establish diversification requirements for the
investment portfolios underlying variable contracts such as the Contracts. The
Regulations amplify the diversification requirements for variable contracts set
forth in the Code and provide an alternative to the safe harbor provision
described above. Under the Regulations an investment portfolio will be deemed
adequately diversified if (i) no more than 55% of the value of the total assets
of the portfolio is represented by any one investment; (ii) no more than 70% of
the value of the total assets of the portfolio is represented by any two
investments; (iii) no more than 80% of the value of the total assets of the
portfolio is represented by any three investments; and (iv) no more than 90% of
the value of the total assets of the portfolio is represented by any four
investments.
The Technical and Miscellaneous Revenue Act of 1988 (the "1988 Act")
provides that for purposes of determining whether or not the diversification
standards imposed on the underlying assets of variable contracts by Section
817(h) of the Code have been met, "each United States government agency or
instrumentality shall be treated as a separate issuer."
The Company intends that each Portfolio of the Trust underlying the
Contracts will be managed by the investment adviser for the Trust in such a
manner as to comply with these diversification requirements.
MULTIPLE CONTRACTS
The 1988 Act provides that multiple annuity contracts which are issued
within a calendar year to the same contract owner by one company or its
affiliates are treated as one annuity contract for purposes of determining the
tax consequences of any distribution. Such treatment may result in adverse tax
consequences including more rapid taxation of the distributed amounts from such
combination of contracts. Contract Owners should consult a tax adviser prior to
purchasing more than one annuity contract in any calendar year.
TAX TREATMENT OF ASSIGNMENTS
An assignment of a Contract may be a taxable event and may be prohibited by
ERISA in some circumstances. Contract Owners should therefore consult competent
tax advisers should they wish to assign their Contracts.
TAX TREATMENT OF WITHDRAWALS -- NON-QUALIFIED CONTRACTS
Section 72 of the Code governs treatment of distributions from annuity
contracts. It provides that if the Contract Value exceeds the aggregate Purchase
Payments made, any amount withdrawn not in the form of an annuity payment will
be treated as coming first from the earnings and then, only after the income
portion is exhausted, as coming from the principal. Withdrawn earnings are
includible in a taxpayer's gross income. Section 72 further provides that a ten
percent (10%) penalty will apply to
23
<PAGE> 27
the income portion of any premature distribution. The penalty is not imposed on
amounts received: (1) after the taxpayer reaches 59 1/2; (2) upon the death of
the Contract Owner; (3) if the taxpayer is totally disabled; (4) in a series of
substantially equal periodic payments made for the life of the taxpayer or for
the joint lives of the taxpayer and his Beneficiary; (5) under an immediate
annuity; or (6) which are allocable to purchase payments made prior to August
14, 1982.
The above information applies to Qualified Contracts issued pursuant to
Section 457 of the Code, but does not apply to other Qualified Contracts.
Separate tax withdrawal penalties and restrictions apply to Qualified Contracts.
(See "Tax Treatment of Withdrawals -- Qualified Contracts").
QUALIFIED PLANS
The Contracts offered by this Prospectus are designed to be suitable for
use under various types of Qualified Plans. Taxation of participants in each
Qualified Plan varies with the type of plan and terms and conditions of each
specific plan. Contract Owners, Annuitants and Beneficiaries are cautioned that
benefits under a Qualified Plan may be subject to the terms and conditions of
the plan regardless of the terms and conditions of the contracts issued pursuant
to the plan.
Following are general descriptions of the types of Qualified Plans with
which the Contracts may be used. Such descriptions are not exhaustive and are
for general informational purposes only. The tax rules regarding Qualified Plans
are very complex and will have differing applications depending on individual
facts and circumstances. Each purchaser should obtain competent tax advice prior
to purchasing a Contract issued under a Qualified Plan.
Contracts issued pursuant to Qualified Plans include special provisions
restricting Contract provisions that may otherwise be available and described in
this Prospectus. Generally, Contracts issued pursuant to Qualified Plans are not
transferable except upon surrender or annuitization. Various penalty and excise
taxes may apply to contributions or distributions made in violation of
applicable limitations. Furthermore, certain withdrawal penalties and
restrictions may apply to surrenders from Qualified Contracts. (See "Tax
Treatment of Withdrawals -- Qualified Contracts").
(A) TAX-SHELTERED ANNUITIES
Section 403(b) of the Code permits the purchase of "tax-sheltered
annuities" by public schools and certain charitable, educational and
scientific organizations described in Section 501(c)(3) of the Code. These
qualifying employers may make contributions to the Contracts for the
benefit of their employees. Such contributions are not includible in the
gross income of the employee until the employee receives distributions from
the Contract. The amount of contributions to the tax-sheltered annuity is
limited to certain maximums imposed by the Code.
Furthermore, the Code sets forth additional restrictions governing such
items as transferability, distributions, nondiscrimination and withdrawals.
(See "Tax Treatment of Withdrawals -- Qualified Contracts"). Any employee
should obtain competent tax advice as to the tax treatment and suitability
of such an investment.
(B) INDIVIDUAL RETIREMENT ANNUITIES
Section 408(b) of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" ("IRA"). Under applicable limitations, certain amounts may be
contributed to an IRA which will be deductible from the individual's gross
income. These IRAs are subject to limitations on eligibility,
contributions, transferability and distributions. (See "Tax Treatment of
Withdrawals -- Qualified Contracts"). Under certain conditions,
distributions from other IRAs and other Qualified Plans may be rolled over
or transferred on a tax-deferred basis into an IRA. Sales of Contracts for
use with IRAs are subject to special requirements imposed by the Code,
including the requirement that certain informational disclosure be given to
persons desiring to establish an IRA. Purchasers of Contracts to be
qualified as IRAs should obtain competent tax advice as to the tax
treatment and suitability of such an investment.
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<PAGE> 28
(C) ROTH IRAS
Section 408A of the Code permits an individual to contribute to an
individual retirement program called a Roth IRA. Unlike contributions to a
regular IRA under Section 408(b) of the Code, contributions to a Roth IRA
are not made on tax-deferred basis, but distributions are tax-free if
certain requirements are satisfied. Like regular IRAs, Roth IRAs are
subject to limitations on the amount that may be contributed, those who may
be eligible and the time when distributions may commence. A regular IRA may
be converted into a Roth IRA, and the resulting income tax shall be spread
over four years if the conversion occurs before January 1, 1999. If and
when Contracts are made available for use with Roth IRAs, they may be
subject to special requirements imposed by the Internal Revenue Service.
Purchasers of the Contracts for this purpose will be provided with such
supplementary information as may be required by the Internal Revenue
Service or other appropriate agency.
TAX TREATMENT OF WITHDRAWALS -- QUALIFIED CONTRACTS
Section 72(t) of the Code imposes a 10% penalty tax on the taxable portion
of any early distribution from qualified retirement plans, including contracts
issued and qualified under Code Sections 403(b) (Tax-Sheltered Annuities) and
408(b) (IRAs).
The tax penalty will not apply to the following distributions: (1) if
distribution is made on or after the date on which the Contract Owner or
Annuitant (as applicable) reaches age 59 1/2; (2) distributions following the
death or disability of the Contract Owner or Annuitant (as applicable) (for this
purpose "disability" is defined in Section 72(m)(7) of the Code); (3)
distributions that are part of substantially equal periodic payments made not
less frequently than annually for the life (or life expectancy) of the Contract
Owner or Annuitant (as applicable) or the joint lives (or joint life
expectancies) of such Contract Owner or Annuitant (as applicable) and his or her
designated beneficiary; (4) distributions to a Contract Owner or Annuitant (as
applicable) who has separated from service after he or she has attained age 55;
(5) distributions made to the Contract Owner or Annuitant (as applicable) to the
extent such distributions do not exceed the amount allowable as a deduction
under Code Section 213 to the Contract Owner or Annuitant (as applicable) for
amounts paid during the taxable year for medical care; and (6) distributions
made to an alternate payee pursuant to a qualified domestic relations order; and
(7) distributions from an IRA made to the owner of Annuitant (as applicable) to
the extent such distributions do not exceed the Qualified Higher Education
expense (as defined in Section 72(t)(7) of the Code) or the Owner or Annuitant
(as applicable) for the taxable year; and (8) distribution from an IRA made to
the Owner of Annuitant (as applicable) which are Qualified First Time Home Buyer
distributions (as defined in Section 72(t)(8) of the Code).
The exceptions stated in items (4), (5) and (6) above do not apply in the
case of an IRA.
The taxable portion of a withdrawal or distribution from Contracts issued
under certain types of plans may, under some circumstances, be "rolled over"
into another eligible plan so as to continue to defer income tax on the taxable
portion. Effective January 1, 1993, such treatment is available for any
"eligible rollover distribution" made by certain types of plans (as described
above under "Taxes -- Withholding Tax on Distributions") that is transferred
within 60 days of receipt into a plan qualified under section 401(a) or 403(a)
of the Code, a tax-sheltered annuity, an IRA, or an individual retirement
account described in section 408(a) of the Code. Plans making such eligible
rollover distributions are also required, with some exceptions specified in the
Code, to provide for a direct "trustee to trustee" transfer of the distribution
to the transferee plan designated by the recipient.
TAX SHELTERED ANNUITIES -- WITHDRAWAL LIMITATIONS
The Tax Reform Act of 1986, effective January 1, 1989, limits the
withdrawal of amounts attributed to contributions made pursuant to a salary
reduction agreement (as defined in Section 403(b)(11) of the Code) to
circumstances only: when the Contract Owner attains age 59 1/2,
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<PAGE> 29
separates from service, dies, becomes disabled (within the meaning of Section
72(m)(7) of the Code), or in the case of hardship. Withdrawals for hardship are
restricted to the portion of the Contract Owner's Contract Value which
represents contributions by the Contract Owner and does not include any
investment results. These limitations on withdrawals apply only to salary
reduction contributions made after December 31, 1988, to income attributable to
such contributions, and to income attributable to amounts held as of December
31, 1988. The limitations on withdrawals do not affect rollovers or exchanges
between certain Qualified Plans. Contract Owners should consult their own tax
counsel or other tax adviser regarding any distributions.
- --------------------------------------------------------------------------------
CUSTODIAN
- --------------------------------------------------------------------------------
State Street Bank and Trust Company, 255 Franklin Street, Boston,
Massachusetts 02110, serves as the custodian of the assets of the separate
account. First SunAmerica pays State Street Bank for services provided, based on
a schedule of fees.
- --------------------------------------------------------------------------------
LEGAL PROCEEDINGS
- --------------------------------------------------------------------------------
There are no pending legal proceedings affecting the separate account. The
Company is engaged in various kinds of routine litigation. In management's
opinion, these matters are not of material importance to their respective total
assets nor are they material with respect to the separate account.
- --------------------------------------------------------------------------------
REGISTRATION STATEMENTS
- --------------------------------------------------------------------------------
Presidential Life is subject to the informational requirements of the
Securities and Exchange Act of 1934 (as amended). It files reports and other
information with the SEC to meet those requirements. You can inspect and copy
this information at SEC public facilities at the following locations:
WASHINGTON, DISTRICT OF COLUMBIA
450 Fifth Street, N.W., Room 1024
Washington, D.C. 20549
CHICAGO, ILLINOIS
500 West Madison Street
Chicago, IL 60661
NEW YORK, NEW YORK
7 World Trade Center, 13th Fl.
New York, NY 10048
To obtain copies by mail contact the Washington, D.C. location. After you
pay the fees as prescribed by the rules and regulations of the SEC, the required
documents are mailed.
Registration statements under the Securities Act of 1933, as amended,
related to the contracts offered by this prospectus are on file with the SEC.
This prospectus does not contain all of the information contained in the
registrations statement and its exhibits. For further information regarding the
separate account, Presidential Life and its general account, the Variable
Portfolios and the contract, please refer to the registration statement and its
exhibits.
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<PAGE> 30
The SEC also maintains a website (http://www.sec.gov) that contains the
SAI, materials incorporated by reference and other information filed
electronically with the SEC by First SunAmerica.
- --------------------------------------------------------------------------------
ADDITIONAL INFORMATION ABOUT THE SEPARATE ACCOUNT
- --------------------------------------------------------------------------------
Additional information concerning the operations of the separate account is
contained in a Statement of Additional Information ("SAI"), which is available
without charge upon written request addressed to us at our Annuity Service
Center, P.O. Box 54299, Los Angeles, California 90054-0299 or by calling (800)
537-3642. The contents of the SAI are tabulated below.
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
COMPANY..................................................... 1
INDEPENDENT ACCOUNTANTS..................................... 1
DISTRIBUTORS................................................ 1
PERFORMANCE DATA............................................ 2
Money Market Portfolio.................................... 2
Other Variable Portfolios................................. 3
INCOME PAYMENTS............................................. 4
Annuity Unit Value........................................ 4
Amount of Income Payments................................. 4
Subsequent Monthly Income Payments........................ 5
TAXES....................................................... 5
FINANCIAL STATEMENTS........................................ 9
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Financial statements of the separate account appear in the SAI. Financial
information regarding the fixed account is reported in Presidential Life's
financial statements, which are also included in the SAI. A copy of the SAI may
be obtained by contacting Presidential Life, c/o its Annuity Service Center.
27
<PAGE> 31
Please forward a copy (without charge) of the Statement of Additional
Information concerning ICAP
Variable Annuity Contracts issued by Presidential Life Insurance Company to:
(Please print or type and fill in all information.)
- ------------------------------------------------------------------------------
Name
- ------------------------------------------------------------------------------
Address
- ------------------------------------------------------------------------------
City/State/Zip
- ------------------------------------------------------------------------------
Date: ________________________ Signed:
Return to: Presidential Life Insurance Company, Annuity Service Center, P.O. Box
54299, Los Angeles, California 90054-0299.
<PAGE> 32
STATEMENT OF ADDITIONAL INFORMATION
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACTS
issued by
PRESIDENTIAL VARIABLE ACCOUNT ONE
of
PRESIDENTIAL LIFE INSURANCE COMPANY
THIS IS NOT A PROSPECTUS. THIS STATEMENT OF ADDITIONAL INFORMATION
SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS FOR THE INDIVIDUAL FLEXIBLE
PREMIUM DEFERRED VARIABLE ANNUITY CONTRACTS WHICH ARE REFERRED TO HEREIN.
THE PROSPECTUS CONCISELY SETS FORTH INFORMATION THAT A PROSPECTIVE
INVESTOR OUGHT TO KNOW BEFORE INVESTING. FOR A COPY OF THE PROSPECTUS DATED
MAY 1,1999, AS IT MAY BE SUPPLEMENTED, CALL OR WRITE THE COMPANY IN C/O ITS
ANNUITY SERVICE CENTER, P.O. Box 54299, LOS ANGELES, CALIFORNIA 90054-0299,
1-800-537-3642.
THIS STATEMENT OF ADDITIONAL INFORMATION IS DATED MAY 1, 1999.
<PAGE> 33
TABLE OF CONTENTS
<TABLE>
<CAPTION>
ITEM PAGE
---- ----
<S> <C>
COMPANY .................................................................. 1
INDEPENDENT ACCOUNTANTS .................................................. 1
DISTRIBUTORS ............................................................. 1
YIELD CALCULATION FOR MONEY MARKET DIVISION .............................. 2
ANNUITY PAYMENTS ......................................................... 3
Annuity Unit Value ................................................... 3
Amount of Annuity Payments ........................................... 3
Subsequent Monthly Payments .......................................... 4
FINANCIAL STATEMENTS ..................................................... 4
</TABLE>
<PAGE> 34
COMPANY
Information regarding Presidential Life Insurance Company (the
"Company") and its ownership is contained in the Prospectus.
INDEPENDENT ACCOUNTANTS
The consolidated financial statements for the three years ended December
31, 1998 of Presidential Life Corporation and subsidiaries have been audited
by Deloitte & Touche LLP, independent auditors, as stated in their report
appearing herein, and are included in reliance upon the report of such firm,
given upon their authority as experts in accounting and auditing. The
consolidated financial statements of Presidential Life Corporation and
subsidiaries should be considered only as bearing on the ability of the Company
to meet its obligations under the Contracts.
The financial statements of Presidential Variable Account One (the
"Separate Account") as of December 31, 1998 and for each of the two years in the
period ended December 31, 1998 also are included in this Statement of Additional
Information. Price Waterhouse LLP, 400 South Hope Street, Los Angeles,
California 90071, serves as the independent accountants for the Separate
Account. The financial statements of the Separate Account referred to above
included in this Statement of Additional Information have been so included in
reliance on the report of Price Waterhouse LLP, independent accountants, given
on the authority of said firm as experts in auditing and accounting.
TO BE FILED BY AMENDMENT
DISTRIBUTORS
The Contracts are sold by licensed insurance agents, where the Contracts
may be lawfully sold, who are registered representatives of broker-dealers which
are registered under the Securities Exchange Act of 1934 and are members of the
National Association of Securities Dealers, Inc.
The offering is on a continuous basis.
Effective April 29, 1994, the Contracts were offered through the
distributor for the Separate Account, SunAmerica Capital Services, Inc.
("SunAmerica Capital Services"), 733 Third Avenue, New York, New York 10017.
The Company is not affiliated with the distributor. Prior to this time,
SunAmerica Securities, Inc. ("SunAmerica Securities") and Royal Alliance
Associates, Inc. ("Royal Alliance"), acted as co-distributors of the Contract.
SunAmerica Securities, Inc. and Royal Alliance Associates, Inc. are each an
indirect, wholly owned subsidiary of SunAmerica Inc.
For the year ended December 31, 1996, no underwriting commission paid to
SunAmerica Capital Services. For the years ended December 31, 1997 and December
31, 1998, no underwriting commission was paid to SunAmerica Capital Services.
-1-
<PAGE> 35
YIELD CALCULATION FOR MONEY MARKET DIVISION
The annualized current yield and the effective yield for the Money
Market Division for the 7 day period ended December 31, 1998 were [ ] and
[ ] respectively. [To be filed by Amendment]
Current yield is computed by first determining the Base Period Return
attributable to a hypothetical Contract having a balance of one Accumulation
Unit at the beginning of a 7 day period using the formula:
Base Period Return = (EV-SV-RMC)/(SV)
where:
SV = value of one Accumulation Unit at the start of a 7 day period
EV = value of one Accumulation Unit at the end of the 7 day period
RMC = an allocated portion of the $3 0 Annual Contract Charge,
prorated for 7 days.
The change in the value of an Accumulation Unit during the 7 day period
reflects the income received, minus any expenses accrued, during such 7 day
period. The Annual Contract Charge is first allocated among the Divisions and
the General Account so that each Division's allocated portion of the charge is
proportional to the percentage of the number of Contract Owners' accounts that
have money allocated to that Division. The portion of the Charge allocable to
the Money Market Division is further reduced, for purposes of the yield
computation, by multiplying it by the ratio that the value of the hypothetical
Contract bears to the value of an account of average size for Contracts funded
by the Money Market Division. Finally, the result is multiplied by the fraction
7/365 to arrive at the portion attributable to the 7 day period.
The current yield is then obtained by annualizing the Base Period
Return:
Current Yield = (Base Period Return) x (365/7)
The Money Market Division also quotes an "effective yield" that differs
from the current yield given above in that it takes into account the effect of
dividend reinvestment in the Money Market Division. The effective yield, like
the current yield, is derived from the Base Period Return over a 7 day period.
However, the effective yield accounts for dividend reinvestment by compounding
the current yield according to the formula:
365/7
Effective Yield = [(Base Period Return + 1) -1].
Net investment income for yield quotation purposes does not include
either realized capital gains and losses or unrealized appreciation and
depreciation, whether reinvested or not. The yield quotations also do not
reflect any impact of transfer fees or Withdrawal or Annuity Charges.
-2-
<PAGE> 36
The yields quoted should not be considered a representation of the yield
of the Money Market Division in the future since the yield is not fixed. Actual
yields will depend not only on the type, quality and maturities of the
investments held by the Money Market Division and changes in interest rates on
such investments, but also on factors such as a Contract Owner's account size
(since the impact of fixed dollar charges will be greater for small accounts
than for larger accounts).
Yield information may be useful in reviewing the performance of the Money
Market Division and for providing a basis for comparison with other investment
alternatives. However, the Money Market Division's yield fluctuates, unlike bank
deposits or other investments that typically pay a fixed yield for a stated
period of time.
ANNUITY PAYMENTS
ANNUITY UNIT VALUE
The value of an Annuity Unit is determined independently for each Separate
Account Division.
For each Division, the value of an Annuity Unit for any Valuation Period
is determined by multiplying the Annuity Unit value for the immediately
preceding Valuation Period by the net investment factor for the Valuation Period
for which the Annuity Unit Value is being calculated and multiplying the result
by an interest factor which offsets the effect of the investment earnings rate
of five percent (5%) per annum that is assumed in the annuity table contained in
the Contract.
The net investment factor for each Division for a Valuation Period is
determined by dividing (a) by (b) and subtracting (c) from the result where: (a)
is the value of an Accumulation Unit from the applicable Division as of the end
of the current Valuation Period; (b) is the value of an Accumulation Unit for
the applicable Division as of the end of the immediately preceding Valuation
Period; and (c) is a factor representing the daily charge for mortality and
expense risks and administration of one and four-tenths percent (1.40%) per
annum.
AMOUNT OF ANNUITY PAYMENTS
The initial annuity payment is determined by applying the Contract Value,
less any premium tax, less any Annuity Charge (if annuity option 3 is elected),
to the annuity table specified in the Contract. Those tables are based on a set
amount per $1,000 of proceeds applied. The appropriate rate must be determined
by the sex and adjusted age of the Annuitant and joint Annuitant, if any. The
adjusted age is determined from the actual age to the nearest birthday at the
Annuity Date according to the table below. The Adjusted Age Table is used to
correct for population mortality improvements over time.
-3-
<PAGE> 37
<TABLE>
<CAPTION>
ADJUSTED AGE TABLE
CALENDAR ADJUSTMENT TO CALENDAR ADJUSTMENT TO
YEAR OF BIRTH ACTUAL AGE YEAR OF BIRTH ACTUAL AGE
------------- ------------- ------------- -------------
<S> <C> <C> <C>
1899-1905 +6 1946-1951 -1
1906-1911 +5 1952-1958 -2
1912-1918 +4 1959-1965 -3
1919-1925 +3 1966-1972 -4
1926-1932 +2 1973-1979 -5
1933-1938 +1 1980-1985 -6
1939-1945 0 1986-1992 -7
</TABLE>
The dollars applied are then divided by 1,000 and multiplied by the
appropriate annuity factor to indicate the amount of the first annuity payment.
That amount is divided by the value of an Annuity Unit as of the Annuity Date to
establish the number of Annuity Units representing each annuity payment. The
number of Annuity Units determined for the first annuity payment remains
constant for the second and subsequent monthly payments.
SUBSEQUENT MONTHLY PAYMENTS
The amount of the second and subsequent annuity payments is determined by
multiplying the number of Annuity Units by the Annuity Unit value as of the
Valuation Period next preceding the date on which each annuity payment is due.
The dollar amount of the first annuity payment determined as above is divided by
the value of an Annuity Unit as of the Annuity Date to establish the number of
Annuity Units representing each annuity payment. The number of Annuity Units
determined for the first annuity payment remains constant for the second and
subsequent monthly payments.
FINANCIAL STATEMENTS
[TO BE PROVIDED BY AMENDMENT]
The consolidated financial statements of Presidential Life Corporation and
subsidiaries included herein should be considered only as bearing upon the
ability of the Company to meet its obligations under the Contracts. The
financial statements of the Separate Account are also included in this Statement
of Additional Information.
-4-
<PAGE> 38
PART C
OTHER INFORMATION
Item 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) Financial Statements
The following financial statements are included in Part A of the
Registration Statement: None
The following financial statements are included in Part B of the
Registration Statement:
Consolidated Financial Statements of Presidential Life Corporation and
subsidiaries for the year ended December 31, 1998. [To be filed by Amendment]
Financial Statements of Presidential Variable Account One for the year
ended December 31, 1998. [To be filed by Amendment]
(b) Exhibits
<TABLE>
<S> <C>
(1) Resolution Establishing Separate Account *
(2) Custody Agreements Not Applicable
(3) (a) Distribution Contracts *
(b) Selling Agreement *
(4) Variable Annuity Contract *
(5) Application for Contract *
(6) Depositor - Corporate Documents
(a) Certificate of Incorporation *
(b) By-Laws *
(7) Reinsurance Contract Not Applicable
(6) Service Agreement
(8) (a) Fund Participation Agreement *
(8) (b) Service Agreement
(9) Opinion of Counsel *
Consent of Counsel *
(10) Consents of Independent Accountants To Be Filed By
Amendment
(11) Financial Statements Omitted from Item 23 Not Applicable
(12) Initial Capitalization Agreement Not Applicable
(13) Performance Computations *
(14) Diagram and Listing of All Persons directly
or indirectly controlled by or under common
control with Presidential Life Insurance
Company, the Depositor or Registrant *
(15) Powers of Attorney *
(14) Financial Data Schedules Not Applicable
</TABLE>
- ----------------------
* Previously Filed in Post-Effective Amendment 10 and Amendment 11 to
this Registration Statement
<PAGE> 39
Item 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
The officers and directors of Presidential Life Insurance Company are
listed below. Their principal business address is 69 Lydecker Street, Nyack,
New York 10960.
<TABLE>
<CAPTION>
Name Position
----- --------
<S> <C>
Herbert Kurz Chairman of the Board, Chief Executive
Officer, President & Director
Shirley Jordan Executive Vice President & Director
Michael V. Oporto Chief Financial Officer, Treasurer & Director
Jerrold Scher Senior Vice President, Actuary & Director
Donna Monacelli Secretary
Donald Barnes Senior Vice President
Michael Reich Senior Vice President
Stanley Rubin Senior Vice President
Donald Barnes Senior Vice President & Director
Charles Snyder Controller & Vice President
Mark Abrams Vice President
Maria Kramer Vice President
Lawrence Lowell Vice President
Andrew Tuck Vice President
Marilyn Shenn Vice President
Joseph Monacelli Vice President
John Ng Vice President
Kenneth B. Clark Director
Richard Giesser Director
Melvin Gold Director
W. Thomas Knight Director
Jerome Johnson Director
George McGovern Director
Paul Pape Director
Irving Schwartz Director
</TABLE>
Item 26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR
REGISTRANT
Presidential Life Corporation
-----------------------------
<TABLE>
<S> <C> <C> <C>
Presidential Asset Presidential Life Presidential Securities P.L. Assigned
Management Company Insurance Company Corporation Services,Inc.
</TABLE>
Item 27. NUMBER OF CONTRACT OWNERS
As of March 31, 1998, the number of Contract Owners of Presidential
Variable Account One was [ ], of which [ ] represented Qualified
Contracts and [ ] represented Non-Qualified Contracts. TO BE UPDATED BY
AMENDMENT
Item 28. INDEMNIFICATION
So far as permitted by the laws of the State of New York, any person
made a party to any action, suit, or proceeding by reason of the fact that he,
his testator or intestate, is or was a director, officer or employee of the
Company, or of any corporation which he served as such at the request of the
Company, shall be indemnified by the Company against the reasonable expenses,
including attorneys' fee, actually and necessarily incurred by him in
connection with the defense of such action, suit, or proceeding, or in
connection with any appeal therein, except in relation to matters as to which
it shall be adjudged in such action, suit or proceeding that such officer,
director or employee is liable for negligence or misconduct in the performance
of his duties. If said action, suit or proceeding shall be settled with the
approval of the Board of Directors and the Court, such director, officer or
employee, upon application for payment of such indemnity, shall be entitled to
such indemnity in such amount that the court shall approve as reasonable;
provided, however, that in the judgment of the Board of Directors, said
director, officer, or employee had not in any substantial way been derelict in
the performance of his duties as charged in such action, suit or proceeding.
The foregoing right to indemnification shall be in addition to other rights to
which any such director, officer or employee may be entitled as a matter of
law.
Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted directors and officers or controlling
persons of the Company pursuant to the foregoing, or otherwise, the Company
<PAGE> 40
has been advised that in the opinion of the Securities and Exchange Commission,
such indemnification is against public policy as expressed in such Act and,
therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Company of expenses
incurred or paid by a director, officer or controlling person of the Company in
the successful defense of any such action, suit or proceeding) is asserted by
such director, officer or controlling person in connection with the securities
being registered, the Company will, unless in the opinion of its counsel the
matter has been settled by controlling precedent, submit to a court of
appropriate jurisdiction the question whether such indemnification by it is
against public policy as expressed in said Act and will be governed by the
final adjudication of such issue.
Item 29. PRINCIPAL UNDERWRITER
SunAmerica Capital Services, Inc. serves as distributor for the
Registrant. Its principal business address is 733 Third Avenue, 4th Floor, New
York, New York 10017.
The following are the directors and executive officers of SunAmerica
Capital Services, Inc.:
Name Position with Distributor
---- --------------------------
J. Steven Neamtz Director and President
Robert M. Zakem Director, Executive Vice
President, General Counsel and
Assistant Secretary
Peter Harbeck Director
Susan L. Harris Secretary
James Nichols Vice President
Per Furmark Vice President
Debbie Potash-Turner Controller
<TABLE>
<CAPTION>
Net Distribution Compensation on
Name of Discounts and Redemption or Brokerage
Distributor Commissions Annuitization Commissions Commissions*
- ----------- ---------------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
SunAmerica None None None None
Capital
Services, Inc.
</TABLE>
__________________
*Distribution fee is paid by Presidential Life Insurance Company
SunAmerica Capital Services, Inc. also acts as the principal underwriter to
the following:
- Variable Separate Account
- Variable Annuity Account One
- FS Variable Annuity Account One
- FS Variable Separate Account
- Variable Annuity Account Four
- Variable Annuity Account Five
- Variable Annuity Account Seven
- SunAmerica Income Funds
- SunAmerica Equity Funds
- SunAmerica Money Market Funds, Inc.
- Style Select Series, Inc.
and will serve as principal underwriter for SunAmerica Strategic Investment
Series, Inc. which is currently in registration.
Item 30. LOCATION OF ACCOUNTS AND RECORDS
Presidential Life Insurance Company, the Depositor for the Registrant,
is located at 69 Lydecker Street, Nyack, New York 10960. SunAmerica Capital
Services, Inc., is located at 733 Third Avenue, 4th Floor, New York, New York
10017. Each maintains those accounts and records required to be maintained by
each pursuant to Section 31(a) of the Investment Company Act of 1940 and the
rules promulgated thereunder.
State Street Bank and Trust Company, 225 Franklin Street, Boston,
Massachusetts 02100, maintains certain accounts and records pursuant to the
instructions of the Registrant.
Item 31. MANAGEMENT SERVICES
Not Applicable.
Item 32. UNDERTAKINGS
Registrant undertakes to file post-effective amendments to this
Registration Statement as frequently as is necessary to ensure that the audited
financial statements in the Registration Statement are never more than 16
months old for so long as payments under the variable annuity Contracts may be
accepted. Registrant undertakes to include either (1) as part of any
application to purchase a contract offered by the prospectus, a space that an
applicant can check to request a Statement of Additional
<PAGE> 41
Information, or (2) a written communication in the Prospectus that the
Applicant can remove to send for a Statement of Additional Information.
Registrant also undertakes to deliver any Statement of Additional Information
and any financial statements required to be made available under this Form N-4
promptly upon written or oral request.
Item 33. Representation
(a) The Company hereby represents that it is relying upon a No-Action Letter
issued to the American Council of Life Insurance dated November 28, 1988
(Commission ref. IP-6-88) and that the following provisions have been
complied with:
1. Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in each registration statement, including
the prospectus, used in connection with the offer of the contract;
2. Include appropriate disclosure regarding the redemption restrictions
imposed by Section 403(b)(11) in any sales literature used in
connection with the offer of the contract;
3. Instruct sales representatives who solicit participants to purchase the
contract specifically to bring the redemption restrictions imposed by
Section 403(b)(11) to the attention of the potential participants;
4. Obtain from each plan participant who purchases a Section 403(b)
annuity contract, prior to or at the time of such purchase, a signed
statement acknowledging the participant's understanding of (1) the
restrictions on redemption imposed by Section 403(b)(11), and (2) other
investment alternatives available under the employer's Section 403(b)
arrangement to which the participant may elect to transfer his contract
value.
(b) REPRESENTATION PURSUANT TO SECTION 26(e) OF THE INVESTMENT COMPANY ACT OF
1940: The Company and Registrant represent that the fees and charges to be
deducted under the variable annuity contract described in the prospectus
contained in this registration statement are, in the aggregate, reasonable,
in relation to the services rendered, the expenses expected to be incurred,
and the risks assumed in connection with the contract.
<PAGE> 42
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company
Act of 1940, the Registrant certifies that it meets the requirements of
Securities Act Rule 485(b) for effectiveness of the Registration Statement and
has caused this Post-Effective Amendment to the Registration Statement to be
signed on its behalf, in the City of Nyack, and the State of New York, on this
25th day of February, 1999.
PRESIDENTIAL VARIABLE ACCOUNT ONE
(Registrant)
By: PRESIDENTIAL LIFE INSURANCE COMPANY
(Depositor)
By: /s/ HERBERT KURZ
-----------------------------------
Herbert Kurz
Principal Executive Officer
As required by the Securities Act of 1933, this Post-Effective
Amendment to the Registration Statement has been signed by the following
persons in the capacity and on the dates indicated.
<TABLE>
<CAPTION>
SIGNATURES TITLE DATE
- ---------- ----- ----
<S> <C> <C>
/s/ HERBERT KURZ Chairman of the Board, Chief February 25, 1999
- ----------------------- Executive Officer, President
Herbert Kurz and Director
(Principal Executive Officer)
/s/ MICHAEL V. OPORTO Chief Financial Officer February 25, 1999
- ----------------------- Treasurer and Director
Michael V. Oporto (Principal Financial Officer)
/s/ CHARLES SNYDER Controller and Vice President February 25, 1999
- ----------------------- (Chief Accounting Officer)
Charles Snyder
/s/ SHIRLEY JORDAN Executive Vice President February 25, 1999
- ----------------------- and Director
Shirley Jordan
/s/ JERROLD SCHER Senior Vice President, February 25, 1999
- ----------------------- Actuary and Director
Jerrold Scher
Donald Barnes Senior Vice President
- ------------------------ and Director
Donald Barnes
Kenneth B. Clark* Director
- ------------------------
Kenneth B. Clark
Richard Giesser* Director
- ------------------------
Richard Giesser
Melvin Gold* Director
- ------------------------
Melvin Gold
Jerome Johnson* Director
- ------------------------
Jerome Johnson
/s/ W. THOMAS KNIGHT Director February 25, 1999
- ------------------------
W. Thomas Knight
</TABLE>
<PAGE> 43
<TABLE>
<S> <C>
Paul Pape* Director
- ------------------------
Paul Pape
Irving Schwartz* Director
- ------------------------
Irving Schwartz
*By: /s/ HERBERT KURZ Attorney-in-Fact
-------------------
Herbert Kurz
</TABLE>
Date: February 25, 1999
