SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1996
FLEXIBLE PREMIUM VARIABLE DEFERRED ANNUITY
The following sections are being added to Transfers on page 22 of the
prospectus:
Asset Rebalancing Option. In order to maintain a particular percentage
allocation among the Subaccounts, the Owner may select the asset rebalancing
option. With asset rebalancing, Intramerica automatically reallocates the
Account Value in the Subaccounts quarterly to the allocation selected by the
Owner. Over a period of time, this method of investing may help an Owner buy
low and sell high although there can be no assurance of this. This investment
method does not assure profits and does not protect against loss in declining
markets.
To elect the asset rebalancing option, the Account Value in the Contract
must be at least $2,500 and a completed Asset Rebalancing Option form must be
received at Intramerica's Home Office. The Owner must designate the applicable
Subaccounts and the percentage allocations for each of the applicable
Subaccounts to be rebalanced quarterly. If the asset rebalancing option is
elected, all amounts allocated to the variable Subaccounts must be included in
the asset rebalancing option. The Owner may not participate in dollar cost
averaging and asset rebalancing at the same time. The General Account is not
available for the asset rebalancing option.
Selection of asset rebalancing will result in the transfer of funds to one
or more of the Subaccounts on the date specified by the Owner. If no date is
specified or if the request is received after the specified date, Intramerica
will transfer funds on the date of receipt of the Asset Rebalancing Option form
and on the quarterly anniversary of the applicable date thereafter. The
amounts transferred will receive the Unit Values for the affected Subaccounts
at the end of the Valuation Date on which the transfers occur. If the
effective date is not a Valuation Date, the transfer will occur on the next
Valuation Date.
The Owner may terminate this option at any time by Written Notice. In the
event of a transfer by written request or telephone instructions, this option
will terminate automatically. In either event, the amounts in the Subaccounts
that have not been transferred will remain in those Subaccounts regardless of
the percentage allocation unless the Owner instructs otherwise. If the Owner
wishes to resume the asset rebalancing option after it has been canceled, a new
Asset Rebalancing Option form must be completed and sent
Q0-PS-96
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to Intramerica's Home Office. Intramerica may discontinue, modify, or suspend
the asset rebalancing option at any time.
Dollar Cost Averaging. Dollar cost averaging is a systematic method of
investing in which units are purchased in fixed dollar amounts so that the cost
is averaged over time. The Owner may dollar cost average their allocations in
the Subaccounts under the Contract by authorizing Intramerica to make periodic
transfers from any one Subaccount to one or more other Subaccounts. Amounts
transferred will purchase units in those Subaccounts at the Unit Value of that
Subaccount as of the Valuation Date the transfer occurs. Since the value of
the units will vary, the amounts transferred to a Subaccount will result in the
purchase of a greater number of units when the Unit Value is low and the
purchase of a lesser number of units when the Unit Value is high. Similarly,
the amounts transferred to a Subaccount will result in the liquidation of a
greater number of units when the Unit Value is low and the liquidation of a
fewer number of units when the Unit Value is high. Dollar cost averaging does
not assure a profit and does not protect against loss in declining markets.
To elect dollar cost averaging, the Account Value in the Contract must be
at least $2,500 and a completed Dollar Cost Averaging form must be received at
Intramerica's Home Office. The Owner must designate the frequency and period
of time of the transfers, the Subaccount from which transfers are to be made
and the Subaccounts and allocation percentages to which funds are to be
transferred. The Owner may not participate in dollar cost averaging and asset
rebalancing at the same time. The General Account is not available for the
dollar cost averaging option.
After Intramerica has received a completed Dollar Cost Averaging form,
Intramerica will transfer the amounts designated by the Owner from the
Subaccount from which transfers are to be made to the Subaccount or Subaccounts
chosen by the Owner. The minimum amount that may be transferred is $50. Each
transfer will occur on the date specified by the Owner. If the Owner has
specified, or the form is received on the 29th, 30th or 31st, Intramerica will
consider the effective date to be the first Valuation Date of the following
month. If no date is specified, funds will be transferred on the monthly,
quarterly, semiannual or annual anniversary, (whichever corresponds to the
frequency selected by the Owner), of the date of receipt of a completed Dollar
Cost Averaging form. The amounts transferred will receive the Unit Values for
the affected Subaccounts at the end of the Valuation Date on which the
transfers occur. If the anniversary is not a Valuation Date, the transfer will
occur on the next Valuation Date. Dollar cost averaging will terminate when
the total amount elected has been
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transferred, or when the value in the Subaccount from which transfers are made
is insufficient to transfer the requested amount.
The Owner may terminate this option at any time by Written Notice. Upon
receipt of Written Notice, the value in the Subaccount from which transfers
were being made will remain in that Subaccount unless the Owner instructs
otherwise. If the Owner wishes to continue transferring on a dollar cost
averaging basis after the expiration of the applicable period, or the amount in
the Subaccount elected is insufficient to transfer the total requested amount,
or after the dollar cost averaging option has been canceled, a new Dollar Cost
Averaging Option form must be completed and sent to Intramerica's Home Office.
Intramerica may discontinue, modify, or suspend the dollar cost averaging
option at any time.
The following section is being added to Full and Partial Surrenders on page 26
of the prospectus:
Systematic Withdrawals. Intramerica currently offers an option under
which partial surrenders of the Contract may be elected by systematic
withdrawals. The Owner may elect to receive systematic withdrawals before the
Maturity Date by sending a completed Systematic Withdrawal form to Intramerica
at its Home Office. The completed form must include the written consent of any
assignee or irrevocable beneficiary, if applicable. The Owner may designate
the systematic withdrawal amount as a percentage of the Account Value allocated
to the Subaccounts and/or General Account, or as a specified dollar amount.
The Owner may designate that systematic withdrawals be made monthly, quarterly,
semiannually, or annually. If the Owner has specified, or the form is received
on the 29th, 30th or 31st, Intramerica will consider the effective date to be
the first Valuation Date of the following month. If no date is specified, the
systematic withdrawal option will commence on the date of receipt of the form.
Each systematic withdrawal must be at least $250. The systematic
withdrawal option will terminate if the amount to be withdrawn exceeds the
Account Value or would cause the Account Value to be below $2,500. If any
portion of the systematic withdrawal is to be withdrawn from the General
Account, the amount requested will be deducted proportionately from each
Declaration Period, and will be on a first-in, first-out basis within the
Declaration Period(s).
Each systematic withdrawal will occur as of the end of the Valuation
Period during which the withdrawal is scheduled. The systematic withdrawal
will be deducted from the Owner's Account Value in the Subaccounts and/or the
General Account as directed by the Owner.
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The Owner may terminate this option at any time by Written Notice. If
this option is terminated, either by Written Notice by the Owner, or if the
amount to be withdrawn has caused the Account Value to be below $2,500, and the
Owner wishes to resume systematic withdrawals, a new Systematic Withdrawal form
must be completed and sent to Intramerica's Home Office. Intramerica may
discontinue, modify, or suspend the systematic withdrawal option at any time.
The tax consequences of a systematic withdrawal, including a 10% penalty tax
imposed on withdrawals made prior to the Owner attaining age 59 1/2 should be
carefully considered. See "CERTAIN FEDERAL INCOME TAX CONSEQUENCES -- Taxation
of Annuities".
The first sentence of the second paragraph of the section entitled "Contract
Application and Issuance of the Contract" on page 18 is deleted and replaced by
the following:
The Contract is available to individuals from ages 1 through 80.
Supplement Dated October 1, 1996
Intramerica Life Insurance Company
9 Ramland Road
Orangeburg, New York 10962
