SUPPLEMENT DATED SEPTEMBER 15, 1999
TO PROSPECTUS DATED MAY 1, 1999
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VARIABLE UNIVERSAL LIFE INSURANCE POLICIES
Issued by
THE AMERICAN LIFE INSURANCE COMPANY OF NEW YORK
Through its
SEPARATE ACCOUNT NO. 3
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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
Variable Universal Life Insurance Policies ("Policies").
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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 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 Policies in early 2000 in
all states where Mutual of America is authorized to issue Policies. In addition,
we will seek to transfer to Mutual of America all Policies 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.
When Mutual of America assumes your Policy, 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 Policy, through its Separate Account No. 3 and its General Account.
The terms of your Policy and your rights under the Policy will remain the same.
In addition, your Policy when assumed will become a participating Mutual of
America policy. We will write to Policyowners in more detail in the months to
come, regarding this transfer process.
We add the following to the Prospectus discussion on page 32 under "Distribution
of the Policies":
In addition to a salary, each sales representative will be eligible to receive a
yearly cash incentive payment based in part on aggregate sales by all
representatives in the representative's regional office compared to sales
targets we established for the office in that year. Our attainment of overall
financial and sales objectives also can effect the payment. Representatives and
certain staff from the top five regional offices will receive a trip to a
conference site to attend a sales and service meeting.
