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 UNIVERSAL LIFE INSURANCE POLICIES
through its
SEPARATE ACCOUNT NO. 3
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The information below supplements the discussion under "Assumption of Policies
by Mutual of America" on page 12 of the Prospectus for variable universal life
insurance policies (the Policies).
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 Policies 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 Policy to be transferred to Mutual of America. You may
request that Mutual of America issue you its policy in exchange for your
American Life Policy, although issuance of a new policy is subject to
certain tax and other restrictions that do not apply to assumption
reinsurance transfers.
After the Closing, all administrative services will be provided to American
Life Policyowners through an office in New York, New York, and Policyowners
will be required to make transfer requests and give other instructions to
American Life in writing. Administrative services will no longer be
available to Policyowners through Regional Offices 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, Policyowners will not be able
to allocate premiums, 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.
