ASXT - SUPP. (01/22/2001) ASXT-NY
Supplement to Prospectus Dated May 1, 2000, Revised Effective October 23, 2000
Supplement dated January 22, 2001
This Supplement should be retained with the current Prospectus for your variable annuity contract issued by American Skandia Life
Assurance Corporation ("American Skandia"). If you do not have a current prospectus, please contact American Skandia at
1-800-SKANDIA.
SALE OF CONTRACTS TO RESIDENTS OF THE STATE OF NEW YORK
Some of the provisions of the Annuity are different for contracts offered to residents of the State of New York. These provisions
are as follows:
GLOSSARY OF TERMS
MVA: The definition for MVA is not applicable.
INVESTMENT OPTIONS
WHAT ARE THE FIXED INVESTMENT OPTIONS?
Fixed investment options are not available to residents of the State of New York. All references to Fixed Allocations are not
applicable.
FEES AND CHARGES
Tax Charges: For New York contracts a charge for taxes may also be assessed against the Sub-accounts.
MANAGING YOUR ANNUITY
MAY I CHANGE THE OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS?
Unless you indicated that a prior choice was irrevocable or your Annuity has been endorsed to limit certain changes, you may
request to change Owner, Annuitant and Beneficiary designations by sending a request In Writing. Where allowed by law, such
changes will be subject to our acceptance. For New York contracts, some of the changes we will not accept include, but are not
limited to: (a) a new Owner subsequent to the death of the Owner or the first of any joint Owners to die, except where a
spouse-Beneficiary has become the Owner as a result of an Owner's death; (b) a new Annuitant prior to the Annuity Date if the
Annuity is owned by an entity; and (c) a change in the Beneficiary if the Owner had previously made the designation irrevocable.
MAY I RETURN THE ANNUITY IF I CHANGE MY MIND?
For New York contracts you may exercise your right to return the Annuity within 21 days of receipt of the Annuity. The amount to
be refunded for New York contracts is the Account Value as of the date we receive your request to cancel the Annuity. Notice
received by mail is effective as of the date of the postmark. If the Annuity is returned to the agent, the effective date is the
date the Annuity is received by the agent.
MANAGING YOUR ACCOUNT VALUE
HOW DO I RECEIVE CREDITS?
We apply a "Credit" to your Annuity's Account Value each time you make a Purchase Payment. The amount of the Credit is payable
from our general account. The amount of the Credit depends on the cumulative amount of Purchase Payments you have made to your
Annuity, payable as a percentage of each specific Purchase Payment, according to the table below:
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Cumulative Purchase Payments Credit
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Between $1,000 and $9,999.99 1.5%
Between $10,000 and $999,999.99 3.0%
Between $1,000,000 and $4,999,999.99 4.0%
Greater than $5,000,000 5.0%
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ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN INVESTMENT OPTIONS?
For New York contracts the minimum amount allowed in an investment option is $500. Your transfer request must be In Writing. For
New York contracts, a specific authorization form MUST be completed which authorizes us to accept transfers via phone or through
means such as electronic mail.
The following services which we may offer are not available for New York contracts: (1) authorization of an independent third
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party to transact transfers on your behalf and (2) market timing program.
AMERICAN SKANDIA'S PERFORMANCE ADVANTAGE
This benefit is not available to residents of the State of New York.
ACCESS TO ACCOUNT VALUE
HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?
The Annuity Date must be the first or the fifteenth day of a calendar month. However, for New York contracts, if the contract's
accumulated value, at the time of annuitization, is less than $2,000, or would provide an income, the initial amount of which is
less than $20 per month, in lieu of commencing the annuity payments, we reserve the right to cancel the Annuity and pay you the
total of the Account Value.
For New York contracts the Annuity Date may not exceed the first day of the calendar month following the Annuitant's 90th birthday.
WHAT IS A MEDICALLY-RELATED SURRENDER AND HOW DO I QUALIFY?
This benefit is not available to residents of the State of New York.
DEATH BENEFIT
For New York contracts:
Basic Death Benefit:
If death occurs during the first ten (10) Annuity Years: The Death Benefit is the greater of:
|X| The sum of all Purchase Payments less the sum of all withdrawals; and
|X| Your Account Value.
If death occurs after the tenth (10th) Annuity Year: The Death Benefit is your Account Value.
Optional Death Benefits
The optional death benefits are not available.
TAX CONSIDERATIONS
HOW ARE DISTRIBUTIONS FROM TAX-QUALIFIED RETIREMENT PLANS TAXED?
Minimum Distributions after age 70 1/2: For New York contracts the Minimum Distribution provision is only available for annuities
issued under Section 403(b) of the IRS Code or for IRA's where Minimum Distributions are required. Minimum Distributions are not
available for any other contracts.
Deferral of Transactions: For New York contracts, if we defer a distribution or transfer from any fixed annuity payout for more
than ten days, we pay interest using our then current crediting rate for this purpose, which is not less than 3% per year on the
amount deferred.
Modification: In addition to obtaining prior approval from the insurance department of our state of domicile before making such a
combination, substitution, deletion or addition, we will also obtain prior approval from the Superintendent of Insurance for New
York.
Misstatement of Age or Sex: For New York contracts the following provision (c) is added:
(c) as to any annuity payments, we shall credit or charge interest using our then current crediting rate for this purpose, which
is not greater than 6% interest per year, calculated from the date of any underpayment or overpayment to the date actual payment
is made.
