Supplement to Prospectus Dated May 3, 1999
Supplement dated August 30, 1999
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.
The following provision is added to the section of the Prospectus entitled "How
Do I Receive Credits?"
Credits Applied to Purchase Payments for Designated Class of Annuity Owner
Where allowed by state law, on Annuities owned by a member of the class defined
below the table of Credits we apply to Purchase Payments is deleted. The Credit
applied to all Purchase Payments on such Annuities will be 8.5%
The designated class of Annuity Owners includes: (a) any parent company,
affiliate or subsidiary of ours; (b) an officer, director, employee, retiree,
sales representative, or in the case of an affiliated broker-dealer, registered
representative of such company; (c) a director, officer or trustee of any
underlying mutual fund; (d) a director, officer or employee of any investment
manager, sub-advisor, transfer agent, custodian, auditing, legal or
administrative services provider that is providing investment management,
advisory, transfer agency, custodianship, auditing, legal and/or administrative
services to an underlying mutual fund or any affiliate of such firm; (e) a
director, officer, employee or registered representative of a broker-dealer or
insurance agency that has a then current selling agreement with us and/or with
American Skandia Marketing, Incorporated; (f) a director, officer, employee or
authorized representative of any firm providing us or our affiliates with
regular legal, actuarial, auditing, underwriting, claims, administrative,
computer support, marketing, office or other services; (g) the then current
spouse of any such person noted in (b) through (f), above; (h) the parents of
any such person noted in (b) through (g), above; (i) such person's child(ren) or
other legal dependent under the age of 21; and (j) the siblings of any such
persons noted in (b) through (h) above.
American Skandia retains the right to recover the amount of any Credits as
described in the Prospectus. All other terms and conditions of the Annuity apply
to Owners in the designated class, except that we will not provide any
Additional Amounts for any such contracts (see "Additional Amounts in the Fixed
Allocations"). Any Target Value Credits applied under the Performance Advantage
benefit are not affected by an Owner's inclusion in the designated class of
Annuity Owners.
You must notify us at the time you apply for an Annuity if you are a member of
the designated class. American Skandia is not responsible for monitoring whether
you qualify as a member of the designated class. Failure to inform us that you
qualify as a member of the designated class may result in your Annuity receiving
fewer Credits than would otherwise be applied to your Annuity.
The following is added to the section of the Prospectus entitled "Who
distributes Annuities offered by American Skandia?"
No compensation is payable on Annuity's purchased by a member of the designated
class of Owners (see section above "Credits Applied to Purchase Payments for
Designated Class of Annuity Owner").
