<PAGE>
[LETTERHEAD OF CANADA LIFE INSURANCE COMPANY OF NEW YORK APPEARS HERE]
February, 1999
Dear Trillium(R) Policyholder:
Enclosed for your review is the Trillium Annual Report for the period ending
December 31, 1998. We encourage you to review this information and refer to it
as needed throughout the year.
Thank you for selecting Trillium for your financial needs.
Sincerely,
/s/ Ronald E. Beettam
Ronald E. Beettam
Encl.
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[LETTERHEAD OF CANADA LIFE INSURANCE COMPANY OF OF NEW YORK APPEARS HERE]
TRILLIUM(R)
A Variable Annuity
ADDITIONAL PREMIUM PAYMENT FORM
Please complete the following information:
OWNER:_______________________ AMOUNT OF PREMIUM PAYMENT:
ANNUITANT:___________________ $____________
POLICY NO.:__________________
OWNER'S SSN/TIN:_____________ IF YOU ARE CHANGING ALLOCATION
PLEASE COMPLETE THE FOLLOWING:
________ THIS PAYMENT ONLY
________ THIS PAYMENT AND ALL FUTURE PYMTS
________ RE-ALLOCATE ALL CURRENT ASSETS
CASH MGMT (21) ___% INCOME (22) ___% SMALL-CAP VALUE (44) ___%
BOND (23) ___% COM STOCK (24) ___% LARGE-CAP VALUE (45) ___%
CAPITAL (25) ___% INTERNATIONAL (26) ___%
COMM & INFO (27) ___% GBL GROWTH OPP (28) ___%
GBL SMLR CO (29) ___% FRONTIER (41) ___%
HIGH YLD BOND (42) ___% GLOBAL TECH (43) ___%
<TABLE>
<S> <C>
- ----------------------------------------------------------------------------------------
FIXED ACCOUNT OPTIONS*
___% 1 Yr. (002) ___% 3 Yr. (303) ___% 5 Yr. (305) ___% 7 Yr. (307) ___%10 Yr. (310)
*The Fixed Accounts and/or the Guarantee Periods may not be available in all states.
- ----------------------------------------------------------------------------------------
Total allocation must equal 100%
</TABLE>
OWNER'S SIGNATURE _______________________ DATE _______________
JOINT OWNER'S SIGNATURE _______________________ DATE _______________
PLEASE MAKE CHECKS PAYABLE TO CANADA LIFE INSURANCE COMPANY OF AMERICA
INFORMATION FOR QUALIFIED POLICY CONTRIBUTIONS
(THIS SECTION MUST BE COMPLETED)
IS THIS A ROLLOVER? _____YES _____NO
IF YES, WHAT TYPE? _____________________ PLEASE NOTE: CONTRIBUTIONS FOR PRIOR
TAX YEAR CANNOT BE MADE
CONTRIBUTION $___________ FOR __________ AFTER APRIL 15TH OF THE
CURRENT TAX YEAR.
CONTRIBUTION $___________ FOR __________
PLEASE DIRECT ANY QUESTIONS REGARDING YOUR POLICY TO YOUR REGISTERED
REPRESENTATIVE OR TO OUR VARIABLE ANNUITY DEPARTMENT AT (800) 905-1959.
OUR VARIABLE ANNUITY ADMINISTRATORS CAN NOT ADVISE YOU ON THE SUITABILITY OF
YOUR PAYMENT. PLEASE CONTACT YOUR REGISTERED REPRESENTATIVE TO DISCUSS
SUITABILITY ISSUES PRIOR TO SUBMITTING YOUR ADDITIONAL PREMIUM PAYMENT.
Variable Annuities are issued by Canada Life Insurance Company of America and
offered through its subsidiary, Canada Life of New York Financial Services, Inc.
(member NASD).
<PAGE>
CANADA LIFE OF NEW YORK
VARIABLE ACCOUNT 2 PERFORMANCE
------------------------------
Average Annual Total Returns for Periods Ending December 31, 1998
Assuming Contract Continues
<TABLE>
<CAPTION>
TRILLIUM
A VARIABLE ANNUITY
Issued by Canada Life Insurance Company of New York
<S> <C> <C> <C> <C> <C> <C>
Since Inception
PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date
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Seligman Communications and Information
Portfolio 34.50% 20.08% -- -- 23.53% 10/4/94
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Seligman Henderson Global Technology Portfolio 34.81 -- -- -- 20.13 5/1/96
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Seligman Frontier Portfolio (2.90) 10.65 -- -- 15.91 10/4/94
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Seligman Small-Cap Value Portfolio (new portfolio) (17.83)* 5/1/98
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Seligman Henderson Global Smaller
Companies Portfolio 5.02 7.64 -- -- 9.77 10/4/94
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Seligman Capital Portfolio 20.41 17.42 13.54% 14.00% 13.20 6/21/88
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Seligman Henderson Global Growth
Opportunities Portfolio 19.82 -- -- -- 10.41 5/1/96
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Seligman Large-Cap Value Portfolio (new portfolio) (1.25)* 5/1/98
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Seligman Common Stock Portfolio 22.35 19.93 16.37 14.75 14.04 6/21/88
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Seligman Henderson International Portfolio 14.12 8.61 6.86 -- 8.39 5/3/93
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Seligman Income Portfolio 6.18 7.67 6.00 8.51 8.08 6/21/88
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Seligman High-Yield Bond Portfolio (0.46) 8.31 -- -- 8.53 5/1/95
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Seligman Bond Portfolio 6.62 4.01 4.64 5.53 5.35 6/21/88
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Seligman Cash Management Portfolio 3.89 3.79 3.44 3.58 3.53 6/21/88
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</TABLE>
* Not annualized
Seligman Cash Management Portfolio's current yield, annualized for the seven-day
period ending December 31, 1998, was 3.31%. Trillium Fixed Account's rate for
the one-year Guarantee Period was 4.50% as of December 31, 1998.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when surrendered,
may be worth more or less than their original cost. Performance of the variable
portfolios reflects the performance of Seligman Portfolios, Inc., the underlying
investment vehicle for the Trillium Variable Account, adjusted for the current
fees and charges (excluding CDSC) associated with Trillium. For performance
figures with CDSC, please see reverse side. The variable account was established
on 2/25/93 and commenced operations on 3/1/96. The fixed account is held in the
general account of Canada Life Insurance Company of New York (CLNY) and provides
a guarantee, by CLNY, against loss of principal, and guarantees payment of a
specified current rate of interest. Please contact your financial advisor or
call Seligman Advisors at 800-221-2783 for a prospectus containing full details
including information on fees and charges. Please read the prospectus carefully
before investing or sending money.
There are specific risks associated with global technology investing, such as
currency fluctuations, foreign taxation, differences in financial reporting
practices, and changes in political conditions. A portfolio that concentrates
its investments in one sector of the economy may be subject to greater share
price fluctuations than a more diversified portfolio. There are specific risks
associated with global investing, such as currency fluctuations, foreign
taxation, differences in financial reporting practices, and changes in political
conditions. A portfolio with fewer holdings may be subject to greater volatility
than a portfolio with a greater number of holdings. The securities in which the
Seligman High-Yield Bond Portfolio invests are subject to a greater risk of loss
of principal and interest than higher-rated investment grade bonds. Purchasers
should carefully assess the risks associated with an investment in the
Portfolio.
<PAGE>
CANADA LIFE OF NEW YORK
VARIABLE ACCOUNT 2 PERFORMANCE
------------------------------
Average Annual Total Returns for Periods Ending December 31, 1998
Assuming Contract Is Surrendered at End of Period
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Since Inception
PORTFOLIOS 1 Year 3 Year 5 Year 10 Year Inception Date
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Seligman Communications and Information
Portfolio 29.10% 19.03% -- -- 23.10% 10/4/94
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Seligman Henderson Global Technology Portfolio 29.41 -- -- -- 18.88 5/1/96
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Seligman Frontier Portfolio (8.30) 9.41 -- -- 15.38 10/4/94
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Seligman Small-Cap Value Portfolio (new portfolio) (23.23)* 5/1/98
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Seligman Henderson Global Smaller
Companies Portfolio (0.38) 6.33 -- -- 9.13 10/4/94
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Seligman Capital Portfolio 15.01 16.32 13.21% 14.00% 13.20 6/21/88
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Seligman Henderson Global Growth
Opportunities Portfolio 14.42 -- -- -- 8.97 5/1/96
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Seligman Large-Cap Value Portfolio (new portfolio) (6.65)* 5/1/98
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Seligman Common Stock Portfolio 16.95 18.88 16.07 14.75 14.04 6/21/88
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Seligman Henderson International Portfolio 8.72 7.32 6.44 -- 8.07 5/3/93
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Seligman Income Portfolio 0.78 6.36 5.57 8.51 8.08 6/21/88
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Seligman High-Yield Bond Portfolio (5.86) 7.01 -- -- 7.54 5/1/95
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Seligman Bond Portfolio 1.22 2.61 4.19 5.53 5.35 6/21/88
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Seligman Cash Management Portfolio (1.51) 2.38 2.96 3.58 3.53 6/21/88
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</TABLE>
* Not annualized
Issued by: Canada Life Insurance Company of New York,
500 Mamaroneck Avenue, Harrison, NY 10528
New York Policy Forms 30099/30100 and 30125/30126 - subject to state approval
Distributed by: Seligman Advisors, Inc.,
100 Park Avenue, New York, NY 10017 . (800) 221-2783
Seligman Cash Management Portfolio's current yield, annualized for the seven-day
period ending December 31, 1998, was 3.31%. Trillium Fixed Account's rate for
the one-year Guarantee Period was 4.50% as of December 31, 1998.
Performance quoted represents past performance, and the investment return and
principal value of an investment will fluctuate so that units, when surrendered,
may be worth more or less than their original cost. Performance of the variable
portfolios reflects the performance of Seligman Portfolios, Inc., the underlying
investment vehicle for the Trillium Variable Account, and is adjusted for
Trillium's current fees and charges, including the maximum CDSC of 6%.
Trillium's CDSC for current premiums (premiums paid during the current and
previous six policy years) starts at 6% and decreases in steps, depending on the
number of policy years since the premium was paid, as follows: less than two
years, 6%; at least two, but less than four, 5%; at least four, but less than
five, 4%; at least five, but less than six, 3%; at least six, but less than
seven, 2%; at least seven, no charge. The variable account was established on
2/25/93 and commenced operations on 3/1/96. The fixed account is held in the
general account of Canada Life Insurance Company of New York (CLNY) and provides
a guarantee, by CLNY, against loss of principal, and guarantees payment of a
specified current rate of interest. Please contact your financial advisor or
call Seligman Advisors at 800-221-2783 for a prospectus containing full details
including information on fees and charges. Please read the prospectus carefully
before investing or sending money.
<PAGE>
The attached are incorporated by reference herein to the annual reports filed by
and on behalf of the following:
Seligman Portfolios, Inc., filed March 4, 1999
Portfolios which include: Seligman Capital; Seligman Cash Management;
Seligman Common Stock; Seligman Bond; Seligman Income; Seligman Henderson
International; Seligman Communications and Information; Seligman Frontier;
Seligman Henderson Global Smaller Companies; Seligman High-Yield Bond;
Seligman Henderson Global Technology; Seligman Henderson Global Growth
Opportunities; Seligman Large-Cap, Value; and Seligman Small-Cap Value
