AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON AUGUST 28, 2000
--------------------------------------------------------------------------------
FILE NO. 333-_____
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(Exact Name of Registrant)
NEW YORK 36-2608394
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification Number)
P.O. Box 9075
Farmingville, New York 11738-9075
516/451-5300
(Address and Phone Number of Principal Executive Office)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847/402-2400
(Name, Complete Address and Telephone Number of Agent for Service)
COPIES TO:
RICHARD T. CHOI, ESQUIRE TERRY R. YOUNG, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS ALFS, INC.
1050 CONNECTICUT AVENUE, N.W. 3100 SANDERS ROAD
SUITE 825 NORTHBROOK, IL 60062
WASHINGTON, D.C. 20036-5366
Approximate date of commencement of proposed sale to the Public: The annuity
contract covered by this registration statement is to be issued promptly and
from time to time after the effective date of this registration statement.
If any of the securities being registered on this Form are to be offered on a
delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box: /X/
<PAGE>
CALCULATION OF REGISTRATION FEE
===============================================================================
<TABLE>
<CAPTION>
Proposed Maximum
<S> <C> <C> <C> <C>
Title of Securities Amount To Be Proposed Maximum Aggregate Offering Amount of
To Be Registered Registered(1) Aggregate Price Per Price(1) Registration Fee(3)
Unit
-------------------- ------------------- ------------------------ -------------------- ---------------------
Deferred Annuity $18,181,818 (2) $18,181,818 $4,800
Contracts and
Participating
Interests Therein
-------------------- ------------------- ------------------------ -------------------- ---------------------
</TABLE>
(1) Estimated solely for purpose of determining the registration fee.
(2) The Contract does not provide for a predetermined amount or number of units.
(3) Of the $15,320,000 of units of interest under deferred variable annuity
contracts registered under Registration Statement No. 33-47245, $5,925,055,
for which a filing fee of $1,851.58 was previously paid, are being carried
forward pursuant to Rule 429.
Registrant hereby amends this Registration Statement on such date or dates as
may be necessary to delay its effective date until the Registrant shall file a
further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to Section 8(a), may
determine.
<PAGE>
Explanatory Note
Registrant is filing this registration statement for the purpose of (i)
registering additional market value adjustment ("MVA") interests under a
deferred variable annuity contract ("Contract") previously described in the
prospectus contained in Registrant's Form S-3 registration statement (File No.
033-47245) ("Existing Prospectus"), and (ii) adding a new prospectus ("New
Prospectus") related to the Contract. The New Prospectus describes the Contract
when sold through financial institutions and broker-dealers who have entered
into a distribution agreement with ALFS, Inc. The MVA interests described in the
New Prospectus are identical to those described in the Existing Prospectus.
Registrant incorporates herein by reference the Existing Prospectus, which
remains unchanged.
<PAGE>
THE CUSTOM ANNUITY
Allstate Life Insurance Company of New York Prospectus dated ________, 2000
P.O. Box 94038
Palatine, IL 60094-4038
Telephone Number: 1-800-692-4682
Allstate Life Insurance Company of New York ("Allstate New York") is offering
The Custom Annuity, an individual single premium deferred annuity contract
("Contract"). This prospectus contains information about the Contract that you
should know before investing. Please keep it for future reference.
The Contracts are available through financial institutions and broker-dealers
who have entered into a distribution agreement with ALFS, Inc., the principal
underwriter for the Contracts.
Important Notices
The Securities and Exchange Commission has not approved or disapproved the
securities described in this prospectus, nor has it passed on the accuracy or
the adequacy of this prospectus. Anyone who tells you otherwise is committing a
federal crime.
Investment in the Contracts involves investment risks, including possible loss
of principal.
The Contracts are available only in New York.
<PAGE>
TABLE OF CONTENTS
Page
Overview
Important Terms
The Contract At A Glance
How the Contract Works
Contract Features
The Contract
Purchases and Contract Value
Guarantee Periods
Expenses
Access To Your Money
Income Payments
Death Benefits
Other Information
More Information:
Allstate New York
The Contract
Qualified Plans
Legal Matters
Year 2000
Taxes
Experts
Annual Reports and Other Documents
Appendix A - Market Value Adjustment
<PAGE>
IMPORTANT TERMS
This prospectus uses a number of important terms that you may not be familiar
with. The index below identifies the page that describes each term. The first
use of each term in this prospectus appears in highlights.
Page
Accumulation Phase
Allstate New York ("We")
Annuitant
Beneficiary
Cancellation Period
Contract
Contract Owner ("You")
Contract Value
Due Proof of Death
Guarantee Periods
Income Plans
Issue Date
Market Value Adjustment
Payout Phase
Payout Start Date
Preferred Withdrawal Amount Qualified Contracts SEC Settlement
Value Systematic Withdrawal Program
THE CONTRACT AT A GLANCE
The following is a snapshot of the Contract. Please read the remainder of this
prospectus for more information.
Single Payment You can purchase a Contract with as little as $1,000 (we may
increase the minimum to $4,000 in the future).
Right to Cancel You may cancel your Contract within 10 days of receipt
("Cancellation Period") and receive a full refund of your purchase payment.
Expenses
o A withdrawal charge will apply to withdrawals made during the initial
Guarantee Period. Withdrawal charges will be the lesser of (a) the
amount withdrawn in excess of the Preferred Withdrawal Amount times
one-half of the interest rate for the Guarantee Period, or (b)
interest earned on the amount withdrawn (certain limits may apply to
reduce this charge). The charge will not exceed 10% of the amount
withdrawn, reduced by 1% for every year the contract is in force times
the sum of the amount withdrawn and the Market Value Adjustment
(described below).
o State premium tax (New York currently does not impose one)
Guaranteed Interest The Contract offers fixed interest rates that we guarantee
for specified periods Interest we call "Guarantee Periods." To find out what the
current rates are on the Guarantee Periods, call us at 1-800-692-4682.
Special Services For your convenience, we offer a Systematic Withdrawal Program.
Income Payments The Contract offers three income payment plans:
o life income with guaranteed payments
o a joint and survivor life income with guaranteed payments
o guaranteed payments for a specified period (5 to 30 years)
Death Benefits If you or the Annuitant dies before the Payout Start Date, we
will pay the death benefit described in the Contract.
Withdrawals You may withdraw some or all of your Contract value ("Contract
Value") at any time prior to the Payout Start Date. If you withdraw Contract
Value from a Guarantee Period before its maturity, a withdrawal charge, Market
Value Adjustment, and taxes (including a 10% penalty tax for withdrawals before
age 59 1/2) may apply.
<PAGE>
HOW THE CONTRACT WORKS
The Contract basically works in two ways.
First, the Contract can help you (we assume you are the Contract owner) save for
retirement because you can invest in the Contract and pay no federal income
taxes on any earnings until you withdraw them. You do this during what we call
the "Accumulation Phase" of the Contract. The Accumulation Phase begins on the
date we issue your Contract (we call that date the "Issue Date") and continues
until the "Payout Start Date", which is the date we apply your money to provide
income payments. You allocate your purchase payment to a Guarantee Period that
earns a fixed rate of interest that we declare periodically.
Second, the Contract can help you plan for retirement because you can use it to
receive retirement income for life and/or for a pre-set number of years, by
selecting one of the income payment options (we call these "Income Plans")
described on page (__). You receive income payments during what we call the
"Payout Phase" of the Contract, which begins on the Payout Start Date and
continues until we make the last income payment required by the Income Plan you
select. During the Payout Phase, we guarantee the amount of your payments, which
will remain fixed. The amount of money you accumulate under your Contract during
the Accumulation Phase and apply to an Income Plan will determine the amount of
your income payments during the Payout Phase.
The timeline below illustrates how you might use your Contract.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Issue Payout Start
Date Accumulation Phase Date Payout Phase
--------------------------------------------------------------------------------------------------------
You buy You save for retirement You elect to receive You can Or you can
a Contract income payments or receive income receive
receive a lump sum payments income
payment for a set period payments for
life
</TABLE>
As the Contract owner, you exercise all of the rights and privileges provided by
the Contract. If you die, any surviving Contract owner or, if none, the
Beneficiary, will exercise the rights and privileges provided by the Contract.
See "The Contract." In addition, if you die before the Payout Start Date, we
will pay a death benefit to any surviving Contract owner or, if there is none,
to your Beneficiary. See "Death Benefits."
Please call us at 1-800-692-4682 if you have any question about how the Contract
works.
<PAGE>
THE CONTRACT
The Custom Annuity is a contract between you, the Contract owner, and Allstate
New York, a life insurance company. As the Contract owner, you may exercise all
of the rights and privileges provided to you by the Contract. That means it is
up to you to select or change (to the extent permitted):
o the amount and timing of your withdrawals,
o the programs you want to use to withdraw money,
o the income payment plan you want to use to receive retirement income,
o the Annuitant (either yourself or someone else) on whose life the income
payments will be based,
o the Beneficiary or Beneficiaries who will receive the benefits that the
Contract provides when the last surviving Contract Owner dies, and
o any other rights that the Contract provides.
If you die, any surviving Contract owner or, if none, the Beneficiary, may
exercise the rights and privileges provided to them by the Contract.
The Contract cannot be jointly owned by both a non-natural person and a natural
person.
You can use the Contract with or without a "qualified plan." A qualified plan is
a personal retirement savings plan, such as an IRA or tax-sheltered annuity,
that meets the requirements of the Internal Revenue Code. Qualified plans may
limit or modify your rights and privileges under the Contract. We use the term
"Qualified Contract" to refer to a Contract issued with a qualified plan. See
"Qualified Plans" on page (__).
ANNUITANT
The Annuitant is the individual whose life determines the amount and duration of
income payments (other than under Income Plans with guaranteed payments for
specified periods). The Contract requires that there be an Annuitant at all
times during the Accumulation Phase and on the Payout Start Date. The Annuitant
must be a natural person.
You initially designate an Annuitant in your application. A Contract owner who
is a natural person may change the Annuitant prior to the Payout Start Date.
Once we receive your change request, any change will be effective at the time
you sign the written notice. We are not liable for any payment we make or other
action we take before receiving any written request from you. You may designate
a joint Annuitant, who is a second person on whose life income payments depend.
BENEFICIARY
The Beneficiary is the person who may elect to receive the death benefit or
become the new Contract owner if the sole surviving Contract owner dies before
the Payout Start Date. If the sole surviving Contract owner dies after the
Payout Start Date, the Beneficiary will receive any guaranteed income payments
scheduled to continue.
You may name one or more Beneficiaries when you apply for a Contract. You may
change or add Beneficiaries at any time, unless you have designated an
irrevocable Beneficiary. We will provide a change of Beneficiary form to be
signed and filed with us. Any change will be effective at the time you sign the
written notice. Until we receive your written notice to change a Beneficiary, we
are entitled to rely on the most recent Beneficiary information in our files. We
will not be liable as to any payment or settlement made prior to receiving the
written notice. Accordingly, if you wish to change your Beneficiary, you should
deliver your written notice to us promptly. If the Contract owner is a natural
person, we will determine the Beneficiary from the most recent request of the
Contract owner.
If the Contract owner is a non-natural person, the Contract owner is also the
Beneficiary, unless a different Beneficiary is named.
If you did not name a Beneficiary or if the named Beneficiary is no longer
living, the Beneficiary will be:
o your spouse or, if he or she is no longer alive,
o your surviving children equally, or if you have no surviving children,
o your estate.
If more than one Beneficiary survives you (or the Annuitant if the Contract
owner is not a natural person), we will divide the death benefit among your
Beneficiaries according to your most recent written instructions. If you have
not given us written instructions, we will pay the death benefit in equal
amounts to the surviving Beneficiaries.
<PAGE>
MODIFICATION OF THE CONTRACT
Only an Allstate New York officer may approve a change in or waive any provision
of the Contract. Any change or waiver must be in writing. None of our agents has
the authority to change or waive the provisions of the Contract. We may not
change the terms of the Contract without your consent, except to conform the
Contract to applicable law or changes in the law. We will notify you of any
changes. If a provision of the Contract is inconsistent with state law, we will
follow state law.
ASSIGNMENT
We will not honor an assignment of an interest in a Contract as collateral or
security for a loan. However, you may otherwise assign periodic income payments
under the Contract prior to the Payout Start Date. No Beneficiary may assign
benefits under the Contract until they are due. We will not be bound by any
assignment until the assignor signs it and files it with us. We are not
responsible for the validity of any assignment. Federal law prohibits or
restricts the assignment of benefits under many types of retirement plans and
the terms of such plans may themselves contain restrictions on assignments. An
assignment may also result in taxes or tax penalties. You should consult with an
attorney before trying to assign your Contract.
PURCHASES AND CONTRACT VALUE
MINIMUM PURCHASE PAYMENT
Your purchase payment must be at least $1,000. We may increase the minimum to
$4,000 in our sole discretion. We do not accept additional purchase payments on
existing Contracts. We reserve the right to limit the maximum amount of purchase
payment we will accept. We reserve the right to reject any application in our
sole discretion.
ALLOCATION OF PURCHASE PAYMENT
You must select a Guarantee Period for your purchase payment from among those
that we offer. A Guarantee Period is a period of years during which you will
earn a guaranteed interest rate on your money. We will apply your purchase
payment to the Guarantee Period you select within 7 days of the receipt of the
payment and required issuing information.
RIGHT TO CANCEL
You may cancel your Contract within the Cancellation Period, which is 10 days
following receipt of your Contract. If you exercise this right to cancel, the
Contract terminates and we will pay you the full amount of your purchase payment
or any greater amount your state may require.
<PAGE>
CONTRACT VALUE
Your Contract Value at any time during the Accumulation Phase is equal to the
purchase payment you have invested in the Guarantee Period, plus earnings
thereon, and less any amounts previously withdrawn. Your Contract uses the term
"Account Value" instead of "Contract Value."
GUARANTEE PERIODS
The purchase payment you allocate to a Guarantee Period earns interest at a
specified rate that we guarantee for a period of years. Guarantee Periods may
range from 1 to 10 years.
The amount that you allocate to a Guarantee Period becomes part of our general
account, which supports our insurance and annuity obligations. The general
account consists of our general assets other than those in segregated asset
accounts. We have sole discretion to invest the assets of the general account,
subject to applicable law. Any money you allocate to a Guarantee Period does not
entitle you to share in the investment experience of the general account.
INTEREST RATES
We will tell you what interest rates and Guarantee Periods we are offering at a
particular time. We will not change the interest rate that we credit to a
particular allocation until the end of the relevant Guarantee Period. We may
declare different interest rates for Guarantee Periods of the same length that
begin at different times.
We have no specific formula for determining the rate of interest that we will
declare initially or in the future. We will set those interest rates based on
investment returns available at the time of the determination. In addition, we
may consider various other factors in determining interest rates including
regulatory and tax requirements, sales commissions and administrative expenses,
general economic trends, and competitive factors. We determine the interest
rates to be declared in our sole discretion. We can neither predict nor
guarantee what those rates will be in the future. For current interest rate
information, please contact your financial advisor or Allstate New York at
1-800-692-4682. The interest rate will never be less than the minimum guaranteed
rate stated in the Contract.
<PAGE>
HOW WE CREDIT INTEREST
We will credit interest to your purchase payment from the Issue Date.
We will credit interest daily to each amount allocated to a Guarantee Period at
a rate that compounds to the annual interest rate that we declared at the
beginning of the applicable Guarantee Period.
The following example illustrates how a purchase payment would grow, given an
assumed Guarantee Period and annual interest rate:
Purchase Payment $10,000
Guarantee Period 5 years
Annual Interest Rate 4.50%
<TABLE>
<CAPTION>
END OF CONTRACT YEAR
<S> <C> <C> <C> <C> <C>
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Beginning Contract Value $10,000.00
X (1 + Annual Interest Rate) X 1.045
----------
$10,450.00
Contract Value at end of Contract Year $10,450.00
X (1 + Annual Interest Rate) X 1.045
----------
$10,920.25
Contract Value at end of Contract Year $10,920.25
X (1 + Annual Interest Rate) X 1.045
----------
$11,411.66
Contract Value at end of Contract Year $11,411.66
X (1 + Annual Interest Rate) X 1.045
----------
$11,925.19
Contract Value at end of Contract Year $11,925.19
X (1 + Annual Interest Rate) X 1.045
----------
$12,461.82
Total Interest Credited During Guarantee Period = $2,461.82 ($12,461.82 -$10,000)
</TABLE>
This example assumes no withdrawals during the entire 5 year Guarantee Period.
If you were to make a partial withdrawal, you may be required to pay a
withdrawal charge. In addition, the amount withdrawn may be increased or
decreased by a Market Value Adjustment that reflects changes in interest rates
since the time you invested the amount withdrawn. The hypothetical interest rate
is for illustrative purposes only and is not intended to predict future interest
rates to be declared under the Contract. Actual interest rates declared for any
given Guarantee Period may be more or less than shown above but will never be
less than the guaranteed minimum rate stated in the Contract.
RENEWALS
At least 35 calendar days prior to the end of each Guarantee Period, we will
mail you a notice listing your renewal options. During the 10-day period after
the end of the Guarantee Period, you may:
1) Take no action. We will automatically apply your money to a one-year renewal
Guarantee Period. The new interest rate will be set at the time of renewal; or
2) Instruct us to apply your money to a new Guarantee Period from among those
that may be available. The new Guarantee Period will begin on the day the
previous Guarantee Period ends. The new interest rate will be our then current
declared rate for the new Guarantee Period; or 3) Withdraw all or a portion of
your money without incurring a withdrawal charge or a Market Value Adjustment.
Amounts not withdrawn will be applied to a new Guarantee Period of the same
length as the previous Guarantee Period. The new Guarantee Period will begin on
the day the previous Guarantee Period ends.
During the first 10 days of a renewal Guarantee Period, any amount withdrawn
will not reflect any interest earned during the 10-day period.
<PAGE>
MARKET VALUE ADJUSTMENT
All withdrawals from a Guarantee Period, other than those taken during the 10
day period after a Guarantee Period expires, are subject to a Market Value
Adjustment. A Market Value Adjustment may also apply upon payment of a death
benefit under a Contract.
We will not apply the Market Value Adjustment on:
o the Payout Start Date;
o withdrawals you take to satisfy IRS required distribution rules for the
Contract; or
o withdrawals within the Preferred Withdrawal Amount, described under
"Expenses" on page (__).
We apply the Market Value Adjustment to reflect changes in interest rates from
the time the amount being withdrawn was allocated to a Guarantee Period to the
time you withdraw it from that Guarantee Period. We calculate the Market Value
Adjustment by comparing the effective annual interest crediting rate for a
period equal to the Guarantee Period at its inception to the interest crediting
rate for a period equal to the time remaining in the Guarantee Period when you
remove your money. See "Appendix A" for a more detailed description.
The Market Value Adjustment may be positive or negative, depending on changes in
interest rates. As such, you bear the investment risk associated with changes in
interest rates. If interest rates increase significantly from the time you make
a purchase payment, the Market Value Adjustment, withdrawal charge, premium
taxes, and income tax withholding (if applicable) could reduce the amount you
receive upon full withdrawal of your Contract Value to an amount that is less
than your purchase payment plus interest at the minimum guaranteed interest rate
under the Contract. However, we guarantee that the amount received upon
surrender (prior to any withholding and before deduction for any applicable
premium taxes) will be at least equal to your purchase payment less any prior
partial withdrawals.
Generally, if the annual interest rate for the Guarantee Period is lower than
the applicable current annual interest rate for a period equal to the time
remaining in the Guarantee Period, then the Market Value Adjustment will result
in a lower amount payable to you. Conversely, if the annual interest rate for
the Guarantee Period is higher than the applicable current annual interest rate,
then the Market Value Adjustment will result in a higher amount payable to you.
For example, assume that you purchase a Contract and select an initial Guarantee
Period of 5 years that has an annual interest rate of 4.50%. Assume that at the
end of 3 years, you make a partial withdrawal. If, at that later time, the
current interest rate for a 2 year Guarantee Period is 4.00%, then the Market
Value Adjustment will be positive, which will result in an increase in the
amount payable to you. Conversely, if the current interest rate for the 2 year
Guarantee Period is 5.00%, then the Market Value Adjustment will be negative,
which will result in a decrease in the amount payable to you.
The formula for calculating Market Value Adjustments is set forth in Appendix A
to this prospectus, which also contains additional examples of the application
of the Market Value Adjustment.
EXPENSES
As a Contract owner, you will bear the charges and expenses described below.
WITHDRAWAL CHARGE
We may assess a withdrawal charge to amounts you withdraw prior to the end of
the initial Guarantee Period. During each year (as measured from the
commencement of a Guarantee Period), you can withdraw up to 10% of the amount of
the funds allocated to that Guarantee Period without paying the withdrawal
charge or a Market Value Adjustment. Unused portions of this 10% "Preferred
Withdrawal Amount" are not carried forward to future years. We will deduct
withdrawal charges, if applicable, from the amount paid.
The amount of the withdrawal charge equals the lesser of:
a. one-half the interest crediting rate for the Guarantee Period multiplied by
the amount withdrawn in excess of the Preferred Withdrawal Amount; or
b. interest earned on the amount withdrawn.
The amount of the withdrawal charge will not exceed 10% of the withdrawal
amount, reduced by 1% for every year the Contract is in force, multiplied by the
sum of: (1) the amount withdrawn; and (2) the Market Value Adjustment.
We do not apply a withdrawal charge in the following situations:
o withdrawals taken to satisfy IRS minimum distribution rules for the Contract
o on the Payout Start Date; or
o money withdrawn within 10 days after the expiration of a Guarantee Period
to which it had been allocated.
Withdrawals may be subject to tax penalties or income tax. You should consult
your own tax counsel or other tax advisers regarding any withdrawals.
PREMIUM TAXES
Currently, we do not make deductions for premium taxes under the Contract
because New York does not charge premium taxes on annuities. We may deduct taxes
that may be imposed in the future from purchase payments or the Contract Value
when the tax is incurred or at a later time.
ACCESS TO YOUR MONEY
You can withdraw some or all of your money at any time prior to the Payout Start
Date. You may not make any withdrawals or surrender your Contract once the
Payout Phase has begun.
The minimum withdrawal amount is $100.00. If the amount you withdraw reduces
your Contract Value to less than $1,000, we will treat the withdrawal request as
a request for total withdrawal and the Contract will terminate.
The amount you receive may be reduced by a withdrawal charge, income tax
withholding, 10% tax penalty, and any applicable premium taxes. The amount you
receive may be increased or reduced by a Market Value Adjustment.
If you request a total withdrawal, we may require that you return your Contract
to us. If we receive your request for a total withdrawal during the 10-day
period following the end of a Guarantee Period, we will pay you the Contract
Value as of the end of the Guarantee Period (less any applicable premium tax and
withholding).
POSTPONEMENT OF PAYMENTS
We may defer payment of withdrawals for up to 6 months from the date we receive
your withdrawal request.
SYSTEMATIC WITHDRAWAL PROGRAM
You may choose to receive systematic withdrawal payments on a monthly,
quarterly, semi-annual, or annual basis at any time prior to the Payout Start
Date. The minimum amount of each systematic withdrawal is $100. We will deposit
systematic withdrawal payments into the Contract owner's bank account or an
account designated by you. Please consult with your financial advisor for
details.
Income taxes may apply to systematic withdrawals. Please consult your tax
advisor before taking any withdrawal.
We may modify or suspend the Systematic Withdrawal Program and charge a
processing fee for the service. If we modify or suspend the Systematic
Withdrawal Program, existing systematic withdrawal payments will not be
affected.
<PAGE>
RETURN OF PURCHASE PAYMENT GUARANTEE
When you withdraw your money, a withdrawal charge and a Market Value Adjustment
may apply. However, if you decide to surrender your Contract, we guarantee that
the amount you receive upon surrender will never be less than your purchase
payment, less amounts previously withdrawn (prior to withholding and the
deduction of any taxes if applicable). Premium taxes, tax penalties and income
tax withheld may reduce the amount you receive on surrender to less than your
purchase payment. This guarantee does not apply to earnings on your purchase
payment. The renewal of a Guarantee Period does not in any way change this
guarantee.
INCOME PAYMENTS
PAYOUT START DATE
The Payout Start Date is the day we apply your Contract Value less any
applicable taxes, to an Income Plan. The Payout Start Date must be:
o at least 30 days after the Issue Date; and
o no later than the Annuitant's 85th birthday, or the 10th Contract anniversary,
if later, but not to exceed the Annuitant's 90th birthday.
You may change the Payout Start Date at any time by notifying us in writing of
the change at least 30 days before the scheduled Payout Start Date. Absent a
change, we will use the Payout Start Date stated in your Contract.
INCOME PLANS
An Income Plan is a series of scheduled payments to you or someone you
designated. You may choose and change your choice of Income Plan until 30 days
before the Payout Start Date. If you do not select an Income Plan, we will make
income payments in accordance with Income Plan 1 with guaranteed payments for 10
years. After the Payout Start Date, you may not make withdrawals or change your
choice of Income Plan.
The three Income Plans available under the Contract are:
Income Plan 1 - Life Income with Guaranteed Payments. Under this plan, we make
periodic income payments for at least as long as the Annuitant lives. If the
Annuitant dies before we have made all of the guaranteed income payments, we
will continue to pay the remainder of the guaranteed income payments as required
by the Contract.
Income Plan 2 - Joint and Survivor Life Income with Guaranteed Payments. Under
this plan, we make periodic income payments for at least as long as either the
Annuitant or the joint Annuitant is alive. If both the Annuitant and the joint
Annuitant die before we have made all of the guaranteed income payments, we will
continue to pay the remainder of the guaranteed income payments as required by
the Contract.
Income Plan 3 - Guaranteed Payments for a Specified Period (5 to 30 years).
Under this plan, we make periodic income payments for the period you have
chosen. These payments do not depend on the life of the Annuitant. You may elect
to receive guaranteed payments for periods ranging from 5 to 30 years.
The length of any guaranteed payment period under your selected Income Plan
generally will affect the dollar amount of each income payment. As a general
rule, longer guarantee periods result in lower income payments, all other things
being equal. For example, if you choose an Income Plan with payments that depend
on the life of the Annuitant but with no minimum specified period for guaranteed
payments, the income payments generally will be greater than the income payments
made under the same Income Plan with a minimum specified period for guaranteed
payments.
<PAGE>
We may make other Income Plans available, including ones that you and we agree
upon. You may obtain information about them by writing or calling us. If you
choose Income Plan 1 or 2, or, if available, another Income Plan with payments
that continue for the life of the Annuitant or joint Annuitant, we may require
proof of age and sex of the Annuitant or joint Annuitant before starting income
payments, and proof that the Annuitant or joint Annuitant are alive before we
make each payment. Please note that under such Income Plans, if you elect to
take no minimum guaranteed payments, it is possible that the payee could receive
only 1 income payment if the Annuitant and any joint Annuitant both die before
the second income payment, or only 2 income payments if they die before the
third income payment, and so on.
We will apply your Contract Value, less applicable taxes, to your Income Plan on
the Payout Start Date. If the Contract Value is less than $2,000, or if your
monthly payments would be less than $20, we may:
o pay you the Contract Value, less any applicable taxes, in a lump sum
instead of the periodic payments you have chosen, or
o reduce the frequency of your payments so that each payment will be at least
$20.
INCOME PAYMENTS
We guarantee income payment amounts for the duration of the Income Plan. We
calculate income payments by:
1) determining your Contract Value on the Payout Start Date;
2) deducting any applicable tax; and
3) applying the resulting amount to the greater of (a) the appropriate value
from the income payment table in your Contract or (b) such other value as we are
offering at that time.
We may defer making fixed income payments for a period of up to six months or
such shorter time state law may require. If we defer such payments for 10 days
or more, we will pay interest as required by law from the date we receive the
withdrawal request to the date we make payment.
CERTAIN EMPLOYEE BENEFIT PLANS
The Contracts offered by this prospectus contain income payment tables that
provide for different payments to men and women of the same age. However, we
reserve the right to use income payment tables that do not distinguish on the
basis of sex to the extent permitted by law. In certain employment-related
situations, employers are required by law to use the same income payment tables
for men and women. Accordingly, if the Contract is to be used in connection with
an employment-related retirement or benefit plan, you should consult with legal
counsel as to whether the purchase of a Contract is appropriate. For qualified
plans, where it is appropriate, we may use income payment tables that do not
distinguish on the basis of sex.
DEATH BENEFITS
The Contract offers a death benefit prior to the Payout Start Date on the
earlier of:
1) the death of any Contract owner, or
2) the death of the Annuitant.
<PAGE>
We will pay the death benefit to the new Contract owner as determined
immediately after the death. The new Contract owner would be a surviving
Contract owner or, if none, the Beneficiary.
A claim for a distribution on death must include Due Proof of Death. We will
accept the following documentation as "Due Proof of Death":
o a certified copy of a death certificate;
o a certified copy of a decree of a court of competent jurisdiction as to the
finding of death, or
o any other proof acceptable to us.
DEATH BENEFIT AMOUNT
Prior to the Payout Start Date, the death benefit is equal to the greater of:
(1) the Contract Value, and (2) the "Settlement Value," which is the Contract
Value, adjusted by any Market Value Adjustment, less withdrawal charges and
taxes. We will calculate the value of the death benefit as of the date we
receive a complete request for payment of the death benefit.
DEATH BENEFIT PAYMENTS
Upon death of the Contract owner, the new Contract owner generally has the
following 3 options:
1) receive the Settlement Value within 5 years of the date of death;
2) receive the death benefit in a lump sum; or
3) apply the death benefit to an Income Plan, with income payments beginning
within one year of the date of death. Income payments must be made over the life
of the new Contract owner, or a period not to exceed the life expectancy of the
new Contract owner.
Options 2 and 3 above are available only if you elect one of these options and
we receive Due Proof of Death within 180 days of the date of death. We are
currently waiving the 180 day limitation but may enforce it in the future.
If the new Contract owner is a non-natural person, the new Contract owner must
elect to receive the death benefit in a lump sum. If we receive Due Proof of
Death within 180 days of the date of death, we will pay a death benefit.
Otherwise, we will pay a Settlement Value.
An Annuitant is necessary to continue the Contract between the date of the
Contract owner's death and the final distribution. If there is no Annuitant, the
new Annuitant will be the youngest new Contract owner.
If the surviving spouse of the deceased Contract owner is the new Contract
owner, then the spouse may elect Options 2 or 3 listed above or may continue the
Contract in the Accumulation Phase as if the death had not occurred. If there is
no Annuitant at that time, the new Annuitant will be the surviving spouse.
If the Contract owner is not the Annuitant and the Annuitant dies, then the
Contract owner has the following 3 options:
1) continue the Contract as if the death had not occurred;
2) receive the death benefit in a lump sum; or
3) apply the death benefit to an Income Plan, which must begin within 1 year of
the date of death and must be for a period equal to or less than the life
expectancy of the Contract owner.
For Options 1 and 3, the new Annuitant will be the youngest Contract owner
unless the Contract owner names a different Annuitant. Options 1 and 3 are not
available if the Contract owner is a non-natural person.
<PAGE>
Options 2 and 3 above are only available if you elect one of these options and
we receive Due Proof of Death within 180 days of the date of death. We are
currently waiving the 180 day limitation but may enforce it in the future.
Please refer to your Contract for more details on the above options.
MORE INFORMATION
ALLSTATE NEW YORK
Allstate New York is the issuer of the Contract. Allstate New York is a stock
life insurance company organized under the laws of New York. From 1967 to 1978,
Allstate New York was known as "Financial Life Insurance Company". From 1978 to
1984, Allstate New York was known as "PM Life Insurance Company." Allstate New
York is currently licensed to operate in New York. Our home office is located at
One Allstate Drive, Farmingville, New York 11738. Our service address is P.O.
Box 94038, Palatine, IL 60094.
Allstate New York is a wholly owned subsidiary of Allstate Life Insurance
Company ("Allstate Life"), a stock life insurance company incorporated under the
laws of the State of Illinois. Allstate Life is a wholly owned subsidiary of
Allstate Insurance Company, a stock property-liability insurance company
incorporated under the laws of the State of Illinois. All of the outstanding
capital stock of Allstate Insurance Company is owned by The Allstate
Corporation.
Several independent rating agencies regularly evaluate life insurers'
claims-paying ability, quality of investments, and overall stability. A.M. Best
Company assigns A+g (Superior) to Allstate New York. Under Best's rating policy
and procedure, Allstate New York is assigned the Best's rating of its parent
company, and is based on the consolidated performance of the parent and its
subsidiary. Standard & Poor's Insurance Rating Services assigns an AA+ (very
strong) financial strength rating and Moody's assigns an Aa2 (Excellent)
financial strength rating to Allstate New York. Allstate New York shares the
same ratings of its parent.
THE CONTRACT
Distribution. ALFS, Inc. ("ALFS"), located at 3100 Sanders Road, Northbrook,
Illinois 60062, serves as principal underwriter of the Contracts. ALFS is a
wholly owned subsidiary of Allstate Life Insurance Company. ALFS is a registered
broker-dealer under the Securities and Exchange Act of 1934, as amended
("Exchange Act"), and is a member of the National Association of Securities
Dealers, Inc. The Contracts are available through financial institutions and
broker-dealers that have entered into a distribution agreement with ALFS.
We may pay up to a maximum sales commission of 8 1/2%, both upon sale of the
Contract and upon renewal of a Guarantee Period.
Allstate New York does not pay ALFS a commission for distribution of the
Contracts. The underwriting agreement with ALFS provides that we will reimburse
ALFS for any liability to Contract owners arising out of services rendered or
Contracts issued.
QUALIFIED PLANS
If you use the Contract with a qualified plan, the plan may impose different or
additional conditions or limitations on withdrawals, waivers of withdrawal
charges, death benefits, Payout Start Dates, income payments, and other Contract
features. In addition, adverse tax consequences may result if qualified plan
limits on distributions and other conditions are not met. Please consult your
qualified plan administrator for more information.
<PAGE>
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate New York
on certain federal securities law matters. All matters of New York law
pertaining to the Contracts, including the validity of the Contracts and
Allstate New York's right to issue such Contracts under New York insurance law,
have been passed upon by Michael J. Velotta, General Counsel of Allstate New
York.
YEAR 2000
Allstate New York is heavily dependent upon complex computer systems for all
phases of its operations, including customer service, risk management and policy
and contract administration. Since many of Allstate New York's older computer
software programs recognize only the last two digits of the year in any date,
some software may fail to operate properly in or after the year 1999, if the
software is not reprogrammed or replaced ("Year 2000 Issue"). Allstate New York
believes that many of its counterparties and suppliers also have Year 2000
Issues which could affect Allstate New York. In 1995, Allstate Insurance Company
commenced a four phase plan intended to mitigate and/or prevent the adverse
effects of Year 2000 Issues. These strategies include normal development and
enhancement of new and existing systems, upgrades to operating systems already
covered by maintenance agreements, and modifications to existing systems to make
them Year 2000 compliant. The plan also included Allstate New York actively
working with its major external counterparties and suppliers to assess their
compliance efforts and Allstate New York's exposure to them. Because of the
accuracy of this plan, and its timely completion, Allstate New York has
experienced no material impacts on its results of operations, liquidity or
financial position due to the Year 2000 Issue. Year 2000 costs are expensed as
incurred.
TAXES
The following discussion is general and is not intended as tax advice. We make
no guarantee regarding the tax treatment of any Contract or transaction
involving a Contract.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on your individual circumstances.
If you are concerned about any tax consequences with regard to your individual
circumstances, you should consult a competent tax advisor.
TAXATION OF ALLSTATE NEW YORK
Allstate New York is taxed as a life insurance company under Part I of
Subchapter L of the Internal Revenue Code ("Tax Code").
TAXATION OF ANNUITIES IN GENERAL
Tax Deferral. Generally, you are not taxed on increases in the Contract value
until a distribution occurs. This rule applies only where the owner is a natural
person. As a general rule, annuity contracts owned by non-natural persons such
as corporations, trusts, or other entities are not treated as annuity contracts
for federal income tax purposes. The income on such contracts is taxed as
ordinary income received or accrued by the owner during the taxable year.
Contracts will generally be treated as held by a natural person if the nominal
owner is a trust that holds the Contract for the benefit of a natural person.
Please see a competent tax advisor to discuss other possible exceptions to the
non-natural owner rule.
Taxation of Partial and Full Withdrawals. If you make a partial withdrawal under
a non-Qualified Contract, amounts received are taxable to the extent the
Contract Value, without regard to surrender charges, exceeds the investment in
the Contract. The investment in the Contract is the gross premium paid for the
Contract minus any amounts previously received from the Contract if such amounts
<PAGE>
were properly excluded from your gross income. If you make a partial withdrawal
under a qualified Contract, the portion of the payment that is not taxable is
equal to the payment times the ratio of the investment in the contract (i.e.,
nondeductible IRA contributions, after tax contributions to qualified plans) to
the contract value.
You should contact a competent tax advisor about the potential tax consequences
of a Market Value Adjustment, as no definitive guidance exists on the proper tax
treatment of Market Value Adjustments. If you make a full withdrawal under a
non-Qualified Contract or a Qualified Contract, the amount received will be
taxable only to the extent it exceeds the investment in the Contract.
"Nonqualified distributions" from Roth IRAs are treated as made from
contributions first and are taxable only to the extent that distributions exceed
contributions. "Qualified distributions" from Roth IRAs are not taxable.
"Qualified distributions" are any distributions made more than five taxable
years after the taxable year of the first contribution to any Roth IRA and which
are:
o made on or after the date the individual attains age 59 1/2,
o made to a beneficiary after the owner's death,
o attributable to the owner being disabled, or
o for a first time home purchase (first time home purchases are subject to a
lifetime limit of $10,000).
If you transfer a non-Qualified Contract without full and adequate consideration
to a person other than your spouse (or to a former spouse incident to a
divorce), you will be taxed on the difference between the Contract Value and the
investment in the Contract at the time of transfer. Except for certain qualified
contracts, any amount you receive as a loan under a Contract, and any assignment
or pledge (or agreement to assign or pledge) of the Contract Value is treated as
a withdrawal of such amount or portion.
Taxation of Annuity Payments. Generally, the rule for income taxation of annuity
payments received from a non-Qualified Contract provides for the return of your
investment in the Contract in equal tax-free amounts over the payment period.
The balance of each payment received is taxable. The amount excluded from income
is determined by multiplying the payment by the ratio of the investment in the
Contract (adjusted for any refund feature or period certain) to the total
expected value of annuity payments for the term of the Contract. The annuity
payments will be fully taxable after the total amount of the investment in the
Contract is excluded using these ratios. If you die, and annuity payments cease
before the total amount of the investment in the Contract is recovered, the
unrecovered amount will be allowed as a deduction for your last taxable year.
Taxation of Annuity Death Benefits. Death of a Contract owner, or death of the
Annuitant if the Contract is owned by a non-natural person, will cause a
distribution of death benefits from a Contract. Generally, such amounts are
included in income as follows:
(1) if distributed in a lump sum, the amounts are taxed in the same manner as a
full withdrawal, or
(2) if distributed under an Income Plan, the amounts are taxed in the same
manner as an annuity payment.
IRS Required Distribution at Death Rules. To qualify as an annuity contract for
federal income tax purposes, a non-Qualified Contract must provide:
(1) if any Contract owner dies on or after the annuity start date, but before
the entire interest in the Contract has been distributed, the remaining
portion of such interest must be distributed at least as rapidly as under
the method of distribution being used as of the date of the owner's death;
<PAGE>
(2) if any Contract owner dies prior to the annuity start date, the entire
interest in the Contract must be distributed within 5 years after the date
of the owner's death.
The 5-year requirement is satisfied if:
o any portion of the Contract owner's interest which is payable to a
designated beneficiary is distributed over the life of such beneficiary (or
over a period not extending beyond the life expectancy of the beneficiary),
and
o the distributions begin within 1 year of the Contract owner's death.
If the Contract owner's designated beneficiary is a surviving spouse, the
Contract may be continued with the surviving spouse as the new owner. If the
owner of the Contract is a non-natural person, the Annuitant is treated as the
owner for purposes of applying the distribution at death rules. In addition, a
change in the Annuitant on a Contract owned by a non-natural person is treated
as the death of the owner.
Penalty Tax on Premature Distributions. A 10% penalty tax applies to the taxable
amount of any premature distribution from a non-Qualified Contract. The penalty
tax generally applies to any distribution made prior to the date you attain age
59 1/2. However, no penalty tax is incurred on distributions:
o made on or after the date the owner attains age 59 1/2;
o made as a result of the owner's death or disability;
o made in substantially equal periodic payments over the owner's life or life
expectancy;
o made under an immediate annuity; or
o attributable to investment in the contract before August 14, 1982.
You should consult a competent tax advisor to determine if any other exceptions
to the penalty apply to your situation. Similar exceptions may apply to
distributions from Qualified Contracts.
Aggregation of Annuity Contracts. All non-qualified deferred annuity contracts
issued by Allstate New York (or its affiliates) to the same owner during any
calendar year will be aggregated and treated as one annuity contract for
purposes of determining the taxable amount of a distribution.
TAX QUALIFIED CONTRACTS
The Contract may be used with several types of qualified plans. The income on
qualified plan and IRA investments is tax deferred and annuities held by such
plans do not receive any additional tax deferral. You should review the annuity
features, including all benefits and expenses, prior to purchasing a annuity in
a qualified plan or IRA. Allstate New York reserves the right to limit the
availability of the Contract for use with any of the Qualified Plans listed
below. The tax rules applicable to participants in qualified plans vary
according to the type of plan and the terms and conditions of the plan.
Qualified plan participants, and Contract owners, Annuitants and Beneficiaries
under the Contract may be subject to the terms and conditions of the qualified
plan regardless of the terms of the Contract.
TYPES OF QUALIFIED PLANS
IRAs. Section 408 of the Code permits eligible individuals to contribute to an
individual retirement plan known as an IRA. IRAs are subject to limitations on
the amount that can be contributed and on the time when distributions may
commence. Certain distributions from other types of qualified plans may be
"rolled over" on a tax-deferred basis into an IRA. An IRA generally may not
provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid or the Contract value. The Contract provides a
death benefit that in certain situations, may exceed the greater of the payments
or the contract value. If the IRS treats the death benefit as violating the
prohibition on investment in life insurance contracts, the Contract would not
qualify as an IRA.
<PAGE>
Roth IRAs. Section 408A of the Code permits eligible individuals to make
nondeductible contributions to an individual retirement plan known as a Roth
IRA. Roth IRAs are subject to limitations on the amount that can be contributed.
In certain instances, distributions from Roth IRAs are excluded from gross
income. Subject to certain limits, a traditional Individual Retirement Account
or Annuity may be converted or "rolled over" to a Roth IRA. The taxable portion
of a conversion or rollover distribution is included in gross income, but is
exempt from the 10% penalty tax on premature distributions.
Simplified Employee Pension Plans. Section 408(k) of the Code allows employers
to establish simplified employee pension plans for their employees using the
employees' IRAs if certain criteria are met. Under these plans the employer may,
within limits, make deductible contributions on behalf of the employees to their
individual retirement annuities. Employers intending to use the contract in
connection with such plans should seek competent advice.
Savings Incentive Match Plans for Employees (SIMPLE Plans). Sections 408(p) and
401(k) of the Tax Code allow employers with 100 or fewer employees to establish
SIMPLE retirement plans for their employees. SIMPLE plans may be structured as a
SIMPLE retirement account using an employee's IRA to hold the assets, or as a
Section 401(k) qualified cash or deferred arrangement. In general, a SIMPLE plan
consists of a salary deferral program for eligible employees and matching or
non-elective contributions made by employers. Employers intending to use the
Contract in conjunction with SIMPLE plans should seek competent tax and legal
advice.
Tax Sheltered Annuities. Section 403(b) of the Tax Code permits public school
employees and employees of certain types of tax-exempt organizations (specified
in Section 501(c)(3) of the Code) to have their employers purchase Contracts for
them. Subject to certain limitations, a Section 403(b) plan allows an employer
to exclude the purchase payments from the employees' gross income. A Contract
used for a Section 403(b) plan must provide that distributions attributable to
salary reduction contributions made after December 31, 1988, and all earnings on
salary reduction contributions, may be made only:
1) on or after the date the employee:
o attains age 59 1/2,
o separates from service,
o dies, or
o becomes disabled; or
2) on account of hardship (earnings on salary reduction contributions may not be
distributed for hardship).
These limitations do not apply to withdrawals where Allstate New York is
directed to transfer some or all of the Contract Value to another 403(b) plan.
Corporate and Self-Employed Pension and Profit Sharing Plans. Sections 401(a)
and 403(a) of the Tax Code permit corporate employers to establish various types
of tax favored retirement plans for employees. The Tax Code permits
self-employed individuals to establish tax favored retirement plans for
themselves and their employees. Such retirement plans may permit the purchase of
Contracts to provide benefits under the plans.
State and Local Government and Tax-Exempt Organization Deferred Compensation
Plans. Section 457 of the Code permits employees of state and local governments
<PAGE>
and tax-exempt organizations to defer a portion of their compensation without
paying current income taxes. The employees must be participants in an eligible
deferred compensation plan. Employees with Contracts under the plan are
considered general creditors of the employer. The employer, as owner of the
Contract, has the sole right to the proceeds of the Contract. Under these plans,
contributions made for the benefit of the employees will not be taxable to the
employees until distributed from the plan. However, all compensation deferred
under a 457 plan must remain the sole property of the employer. As property of
the employer, the assets of the plan are subject only to the claims of the
employer's general creditors, until such time as the assets become available to
the employee or a beneficiary.
INCOME TAX WITHHOLDING
Allstate New York is required to withhold federal income tax at a rate of 20% on
all "eligible rollover distributions" unless you elect to make a "direct
rollover" of such amounts to an IRA or eligible retirement plan. Eligible
rollover distributions generally include all distributions from Qualified
Contracts, excluding IRAs, with the exception of:
o required minimum distributions, or
o a series of substantially equal periodic payments made over a period of at
least 10 years, or,
o over the life (joint lives) of the participant (and beneficiary).
Allstate New York may be required to withhold federal and state income taxes on
any distributions from non-Qualified Contracts, or Qualified Contracts that are
not eligible rollover distributions, unless you notify us of your election to
not have taxes withheld.
EXPERTS
The financial statements and the related financial statement schedules of
Allstate New York incorporated in this prospectus by reference from the
Company's Annual Report on Form 10-K for the year ended December 31, 1999, have
been audited by Deloitte & Touche LLP, independent auditors, as stated in their
report, which is incorporated herein by reference, and have been so incorporated
in reliance upon the report of such firm given upon their authority as experts
in accounting and auditing.
ANNUAL REPORTS AND OTHER DOCUMENTS
Allstate New York's annual report on Form 10-K for the year ended December 31,
1999 and Allstate New York's Quarterly Report on Form 10-Q for the quarter ended
June 30, 2000 are incorporated herein by reference, which means that they are
legally a part of this prospectus.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the
Securities and Exchange Commission ("SEC") under the Exchange Act are also
incorporated herein by reference, which means that they also legally become a
part of this prospectus.
Statements in this prospectus, or in documents that we file later with the SEC
and that legally become a part of this prospectus, may change or supersede
statements in other documents that are legally part of this prospectus.
Accordingly, only the statement that is changed or replaced will legally be a
part of this prospectus.
<PAGE>
We file our Exchange Act documents and reports, including our annual and
quarterly reports on Form 10-K and Form 10-Q electronically on the SEC's "EDGAR"
system using the identifying number CIK No. 0000838759. The SEC maintains a Web
site that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the SEC. The
address of the site is http://www.sec.gov. You also can view these materials at
the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. For more information on the operations of the SEC's Public Reference
Room, call 1-800-SEC-0330.
If you have received a copy of this prospectus, and would like a free copy of
any document incorporated herein by reference (other than exhibits not
specifically incorporated by reference into the text of such documents), please
write or call us at P.O. Box 94038, Palatine, IL 60094 (telephone:
1-800-692-4682).
ANNUAL STATEMENTS
At least once a year prior to the Payout Start Date, we will send you a
statement containing information about your Contract Value. For more
information, please contact your financial advisor or call our customer support
unit at 1-800-692-4682.
APPENDIX A
MARKET VALUE ADJUSTMENT
The Market Value Adjustment is based on the following:
I = the effective annual interest crediting rate for that Guarantee Period;
N = the number of complete days from the date of withdrawal to the end of the
Guarantee Period; and
J = the current initial or current renewal interest rate credited for a
withdrawal from an initial or renewal guarantee period, respectively, on
the date the withdrawal request is received for a Guarantee Period of
duration N. If a Guarantee Period of duration N is not currently being
offered, J will be determined by linear interpolation (weighted average)
between the two nearest periods being offered. If N is less than or equal
to 365 days, J will be the rate for a Guarantee Period of duration 365.
For any withdrawal, if J is not available, J will be equal to the most recent
Moody's Monthly Corporate Bond Yield Average (for the applicable duration) as
published by Moody's Investor Services, Inc. In the event that the Moody's
Monthly Corporate Bond Yield Average is no longer available, a suitable
replacement index, subject to the approval of the New York Insurance Department,
would be utilized.
The Market Value Adjustment factor is determined from the following formula:
.9 x (I-J) x (N/365)
To determine the Market Value Adjustment, we will multiply the Market Value
Adjustment factor by the amount withdrawn (in excess of the Preferred Withdrawal
Amount) from a Guarantee Period at any time other than during the 10 day period
after such Guarantee Period expires. The Market Value Adjustment may also be
applied to your Contract Value in determining the amount of the death benefit.
<PAGE>
EXAMPLES OF MARKET VALUE ADJUSTMENT
Purchase Payment:.$10,000 allocated to a Guarantee Period
Guarantee Period:.5 years
Interest Rate:.... 4.50%
Full Surrender:... End of Contract Year 3
NOTE: These examples assume that premium taxes are not applicable.
<PAGE>
EXAMPLE 1: (Assumes declining interest rates)
<TABLE>
<CAPTION>
Step 1. Calculate Contract Value at
End of Contract Year 3: $10,000.00 X (1.045)3 = $11,411.66
<S> <C> <C> <C> <C>
Step 2. Calculate the Amount in excess of Preferred Withdrawal Amount (.10 X 10,000) = $1,000
the Preferred Withdrawal Amount: Amount in Excess: $11,411.66 - $1,000 = $10,411.66
Step 3. Calculate the Withdrawal Charge: .0225 (represents 1/2 of interest rate of 0.45) X $10,411.66 = $234.26
Step 4. Calculate the I = 4.5%
Market Value Adjustment: J = 4.2%
N = 730 days
......... Market Value Adjustment Factor: .9 X (I-J) X N/365
......... = .9 X (.045 - .042) X (730/365) = .0054
Market Value Adjustment = Market
Value Adjustment Factor X Amount
Subject to Market Value Adjustment:
......... = .0054 X $10,411.66 = $56.22
Step 5. Calculate the amount received $11,411.66 - $234.26 + $56.22 = $11,233.62
by a Contract owner as a result of full
withdrawal at the end of Contract Year 3:
EXAMPLE 2: (Assumes rising interest rates)
Step 1. Calculate Contract Value at End of Contract Year 3: $10,000.00 X (1.045)3 = $11,411.66
Step 2. Calculate the Amount in excess of Preferred Withdrawal Amount(.10 X 10,000) = $1,000
the Preferred Withdrawal Amount: Amount in Excess: $11,411.66 - 1,000 = $10,411.66
Step 3. Calculate the Withdrawal Charge: .0225 (represents 1/2 of interest rate of 0.45) X
$10,411.66 = $234.26
Step 4. Calculate the Market Value Adjustment: I = 4.5%
J = 4.8%
N = 730 days
Market Value Adjustment Factor: .9 X (I-J) X N/365
= .9 X (.045 - .048) X (730/365) = -.0054
Market Value Adjustment = Market Value Adjustment Factor X
Amount Subject to Market Value Adjustment
= -.0054 X $10,411.66 = - $56.22
Step 5. Calculate the amount received by a Contract owner
as a result of full withdrawal at the end of Contract Year 3: $11,411.66 - $234.26 - $56.22 = $11,121.18
</TABLE>
This prospectus does not constitute an offering in any jurisdiction in which
such offering may not lawfully be made. We do not authorize anyone to provide
any information or representations regarding the offering described in this
prospectus other than as contained in this prospectus.
<PAGE>
PART II
INFORMATION NOT REQUIRED IN THE PROSPECTUS
ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.
The By-laws of Allstate Life Insurance Company of New York
("Registrant") provide that Registrant will indemnify its officers and directors
for certain damages and expenses that may be incurred in the performance of
their duty to Registrant. No indemnification is provided, however, when such
person is adjudged to be liable for negligence or misconduct in the performance
of his or her duty, unless indemnification is deemed appropriate by the court
upon application.
ITEM 16. EXHIBITS.
Exhibit No. Description
(1)(a) Form of Underwriting Agreement with Dean Witter Reynolds,
Inc. (Incorporated herein by reference to Post-Effective
Amendment No. 13 to Form N-4 Registration Statement of
Northbrook Variable Annuity Account II of Northbrook Life
Insurance Company (File No. 033-35412) dated December 31, 1996.)
(1)(b) Underwriting Agreement with ALFS, Inc.*
(2) None
(4) Form of Allstate Life Insurance Company of New York Single
Premium Deferred Annuity Contract and Application (Incorporated
herein by reference to Post-Effective Amendment No. 5 to
Registrant's Registration Statement (File No.033-47245) dated
April 1, 1997.)
(5) Opinion of General Counsel re: Legality
(8) None
(11) None
(12) None
(15) None
(23)(a) Independent Auditors' Consent
(23)(b) Consent of Attorneys
(24)(a) Powers of Attorney for Thomas J. Wilson, II, Michael J. Velotta,
Margaret Dyer, Marla Friedman, Vincent A. Fusco, John C. Lounds,
J. Kevin McCarthy, Samuel H. Pilch, Kevin R. Slawin,
Steven C. Verney, and Patricia W. Wilson.
(25) None
(26) None
(27) Not applicable
(99) Form of Resolution of Board of Directors (Incorporated herein
by reference to Post-Effective Amendment No. 5 to Registrant's
Registration Statement (File No. 033-47245) dated April 1, 1997.)
* To be filed by pre-effective amendment.
ITEM 17. UNDERTAKINGS.
The undersigned registrant hereby undertakes:
(1) to file, during any period in which offers or sales are being made, a
post-effective amendment to the registration statement:
(i) to include any prospectus required by section 10(a)(3) of the Securities Act
of 1933;
(ii) to reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the registration statement;
(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration statement or any
material change to such information in the registration statement;
<PAGE>
provided, however, that paragraphs (1)(i) and (1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the
Commission by Registrant pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 that are incorporated by reference in the registration
statement.
(2) That, for the purpose of determining any liability under the Securities Act
of 1933, each such post-effective amendment shall be deemed to be a new
registration statement relating to the securities offered therein, and the
offering of such securities at that time shall be deemed to be the initial bona
fide offering thereof;
(3) To remove from registration by means of a post-effective amendment any of
the securities being registered which remain unsold at the termination of the
offering.
Insofar as indemnification for liabilities arising under the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant, Allstate Life Insurance Company of New York, pursuant to the
foregoing provisions, or otherwise, the registrant has been advised that in the
opinion of the Securities and Exchange Commission such indemnification is
against public policy as expressed in the Act and is, therefore, unenforceable.
In the event that a claim for indemnification against such liabilities (other
than the payment by registrant of expenses incurred or paid by a director,
officer or controlling person of the registrant in the successful defense of any
action, suit or proceeding) is asserted by such director, officer or controlling
person in connection with the securities being registered, the registrant 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 the
Securities Act and will be governed by the final adjudication of such issue.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, Registrant certifies
that it has reasonable grounds to believe that it meets all of the requirements
for filing on Form S-3 and has duly caused this registration statement to be
signed on its behalf by the undersigned, thereunto duly authorized, in the
Township of Northfield, State of Illinois on the 16th day of August, 2000.
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(REGISTRANT)
By: /s/MICHAEL J. VELOTTA
------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
Pursuant to the requirements of the Securities Act of 1933, this registration
statement has been signed by the following persons in the capacities indicated
and on the 16th day of August, 2000.
*THOMAS J. WILSON, II Chairman of the Board and President
---------------------- (Principal Executive Officer)
Thomas J. Wilson, II
/s/Michael J. Velotta Vice President, Secretary, General
---------------------- Counsel and Director
Michael J. Velotta
*Margaret G. Dyer Director
----------------------
Margaret G. Dyer
*Marla G. Friedman Director and Vice President
----------------------
Marla G. Friedman
*Vincent A. Fusco Director
----------------------
Vincent A. Fusco
*John C. Lounds Director
----------------------
John C. Lounds
*J. Kevin McCarthy Director
----------------------
J. Kevin McCarthy
*Sam H. Pilch Controller
---------------------- (Principal Accounting Officer)
Sam H. Pilch
*Kevin R. Slawin Vice President
---------------------- (Principal Financial Officer)
Kevin Slawin
*Steven C. Verney Director
----------------------
Steven C. Verney
*Patricia W. Wilson Director
----------------------
Patricia W. Wilson
*By Michael J. Velotta pursuant to Power of Attorney filed herewith.
<PAGE>
EXHIBIT LIST
The following exhibits are filed herewith:
Exhibit No. Description
(5) Opinion of General Counsel re: Legality
(23)(a) Independent Auditors' Consent
(23)(b) Consent of Attorneys
(24)(a) Powers of Attorney for Thomas J. Wilson, II, Michael J. Velotta,
Margaret Dyer, Marla Friedman, Vincent A. Fusco, John C. Lounds,
J. Kevin McCarthy, Samuel H. Pilch, Kevin R. Slawin,
Steven C. Verney, Patricia W. Wilson
