SUPPLEMENT DATED SEPTEMBER 15, 1999
TO PROSPECTUS DATED MAY 1, 1999
- --------------------------------------------------------------------------------
VARIABLE ACCUMULATION ANNUITY CONTRACTS
Issued by
THE AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
Through its
SEPARATE ACCOUNT NO. 2
- --------------------------------------------------------------------------------
The American Life Insurance Company of New York ("American Life" or "we") hereby
supplements, as described below, the Prospectus, dated May 1, 1999, for its
Individual Retirement Annuity Contract ("IRA Contract"), including Traditional
IRA, Roth IRA, SIMPLE IRA and SEP IRA Contracts, and its Flexible Premium
Deferred Annuity Contract ("FPA Contract") (together, the "Contracts").
----------
Mutual of America Life Insurance Company ("Mutual of America") is our parent
corporation. It began operations in 1945 and is now a mutual life insurance
company organized in New York. As of June 30, 1999, Mutual of America had total
consolidated assets of $10.5 billion.
Mutual of America acquired American Life in 1988 to allow Mutual of America to
write certain insurance and annuity business that had become subject to
corporate income tax at Mutual of America as a result of the Tax Reform Act of
1986. Mutual of America's core pension business, involving the sale of
retirement and savings plan products to not-for-profit organizations and
governmental entities, and their employees, remained tax-exempt until January 1,
1998. At that date, all of Mutual of America's business became subject to
corporate Federal income taxes. Consequently, Mutual of America no longer needs
to separate taxable business at the level of its subsidiary, American Life.
As a result, Mutual of America is expanding its operations to corporate and
individual purchasers, and we will stop issuing new Contracts as of October 1,
1999. In addition, we will seek to transfer to Mutual of America all Contracts
that we have issued. This transfer process, called "assumption reinsurance"
under state insurance law provisions, is expected to occur on April 1, 2000, or
as soon thereafter as we obtain all necessary approvals from state insurance
departments. We will write to Owners in more detail in the months to come,
regarding this transfer process.
When Mutual of America assumes your Contract, it will become the issuer in place
of American Life. It will have all of the obligations and hold all of the assets
under your Contract, through its Separate Account No. 2 and its General Account.
The terms of your Contract and your rights under the Contract will remain the
same. In addition, your Contract when assumed will become a participating Mutual
of America policy.
(continued on reverse side)
<PAGE>
SUPPLEMENT DATED SEPTEMBER 15, 1999
TO PROSPECTUS DATED MAY 1, 1999(continued)
- --------------------------------------------------------------------------------
The discussion on page 24 of the Prospectus under "How to Contact Us and Give Us
Instructions--Transfers, Allocation Changes and Withdrawals by Telephone" is
supplemented as follows:
As of December 1, 1999 (or a later date we determine), you may make requests
through our Internet web site for transfers of Account Balance among
Investment Alternatives or to change the Investment Alternatives to which we
will allocate your future Contributions. You may not make any withdrawals by
Internet. Our Internet web site address is www.mutualofamerica.com.
You must use your Personal Identification Number ("PIN") to make Internet
requests. On any Valuation Day, we will consider requests via Internet that
we receive by 4 p.m. Eastern Time (or the close of the New York Stock
Exchange, if earlier), as received that Valuation Day.
Although our failure to follow reasonable procedures may result in our
liability for any losses due to unauthorized or fraudulent Internet
transfers, we will not be liable for following instructions we reasonably
believe to be genuine. We will employ reasonable procedures to confirm that
instructions communicated by Internet are genuine. Those procedures are to
confirm your Social Security number, check the Personal Identification
Number, and provide written confirmation of Internet transactions.
We reserve the right at any time to suspend, modify or terminate the right of
Owners to request transfers or changes in allocation instructions by
Internet.
