Supplement, dated September 15, 2000
to Prospectus, dated May 1, 2000
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THE AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
320 Park Avenue, New York, New York 10022
VARIABLE ACCUMULATION ANNUITY CONTRACTS
Individual Retirement Annuity Contracts and
Flexible Premium Deferred Annuity Contracts
through its
SEPARATE ACCOUNT NO. 2
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The information below supplements the discussion under "Assumption of Contracts
by Mutual of America" on page 8 of the Prospectus for Individual Retirement
Annuity (IRA) and Flexible Premium Deferred Annuity (FPA) Contracts.
On August 4, 2000, Mutual of America Life Insurance Company (Mutual of
America), the indirect parent corporation of The American Life Insurance
Company of New York (American Life), entered into a purchase and sale
agreement (the Agreement) with Inviva, Inc., a Delaware corporation
(Inviva), for the sale of the corporation that owns American Life. If the
transactions under the Agreement are consummated, Inviva will become the
indirect parent corporation of American Life. The closing of the sale under
the Agreement (the Closing) is subject to a number of conditions, including
the approval of the New York State Insurance Department. Mutual of America
and Inviva anticipate that the Closing will occur before December 31, 2000.
A substantial portion of the IRA and FPA Contracts that were issued by
American Life have been transferred to Mutual of America, through a process
called assumption reinsurance. In connection with the Closing, Mutual of
America may make another assumption offer to you, which you may need to
affirmatively accept if you want your Contract to be transferred to Mutual
of America. At any time, you may request that Mutual of America issue you
its contract in exchange for your American Life IRA or FPA Contract.
After the Closing, all administrative services will be provided to American
Life Contract Owners through an office in New York, New York, and Contract
Owners will be required to make transfer requests and give other
instructions to American Life in writing. Administrative services will no
longer be available to Contract Owners through Regional Offices, an Internet
website or the current 800 toll-free telephone number.
The following information supplements the discussion under "Underlying Funds
Invested in by Our Separate Account" on page 9 of the Prospectus.
Mutual of America Investment Corporation (the Investment Company) has
applied to the Securities and Exchange Commission (the SEC) for an exemptive
order allowing it to sell shares of its Funds to American Life following the
Closing, because American Life will no longer be an affiliate of Mutual of
America once the Closing occurs. If the SEC has not issued an order to the
Investment Company by the date of the Closing, Contract Owners will not be
able to make additional contributions, or transfer Account Balances, to the
Separate Account Funds that invest in shares of the Investment Company's
Funds until the SEC has issued the order.
