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File Nos. 33-79170, 811-8524
Filed under Rule 497(c)
EXPLANATORY NOTE
PROFILE AND PROSPECTUS
OF
EQUI-SELECT
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PROFILE OF
EQUI-SELECT
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACT
MAY 1, 1999
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This Profile is a summary of some of the more important points
that you should know and consider before purchasing the Contract.
The Contract is more fully described in the full prospectus which
accompanies this Profile. Please read the prospectus carefully.
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1. THE ANNUITY CONTRACT
The Contract offered in this prospectus is an individual flexible
premium deferred variable annuity contract between you and Equitable
Life Insurance Company of Iowa ("Equitable Life", "we", "us" or the
"Company"). The Contract provides a means for you to invest on a tax-
deferred basis in one or more of 21 mutual fund investment portfolios
through our Separate Account A listed under Item 4. Keep in mind
that you can loose or not make any money.
The Contract, like all deferred variable annuity contracts, has two
phases: the accumulation phase and the income phase. The accumulation
phase is the period between the contract date and the date on which
you start receiving the annuity payments under your Contract. The
amounts you accumulate during the accumulation phase will determine
the amount of annuity payments you will receive. The income phase
begins when you start receiving regular annuity payments from your
Contract on the annuity start date.
You determine (1) the amount and frequency of premium payments, (2)
the investments, (3) transfers between investments, (4) the type of
annuity to be paid after the accumulation phase, (5) the beneficiary
who will receive the death benefits, and (6) the amount and frequency
of withdrawals.
2. YOUR ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity payments are the periodic payments you will begin receiving on
the annuity start date. You may choose one of the following fixed
annuity payment options:
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[Table with Shaded Heading]
Annuity Options
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| PLAN A. INTEREST |
| Option 1 The contract value, less any applicable taxes |
| not previously deducted, may be left on |
| deposit with the Company for five (5) years. |
| We will make fixed payments monthly, |
| quarterly, semi-annually, or annually. We do |
| not make monthly payments if the contract |
| value applied to this option is less than |
| $100,000. You may |
| not withdraw the proceeds until the end of |
| the five (5) year period. |
| |
| Option 2 The cash surrender value may be left on |
| deposit with us for a specified period. |
| Interest will be paid annually. All or part |
| of the proceeds may be withdrawn at any time. |
|------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The contract value, less any applicable taxes |
| not previously deducted, will be paid until |
| the proceeds, plus interest, are paid in |
| full. Payments may be paid annually or |
| monthly for a period of not more than thirty |
| (30) years nor less than five (5) years. The |
| Contract provides for a table of minimum |
| annual payments. They are based on the age |
| of the annuitant or the beneficiary. |
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| PLAN C. LIFE INCOME |
| The contract value less any applicable taxes |
| not previously deducted will be paid in |
| monthly or annual payments for as long as the |
| annuitant or beneficiary, whichever is |
| appropriate, lives. We have the right to |
| require proof satisfactory to it of the age |
| and sex of such person and proof of |
| continuing survival of such person. A |
| minimum number of payments may be guaranteed, |
| if desired. The Contract provides for a |
| table of minimum annual payments. They are |
| based on the age of the annuitant or the |
| beneficiary. |
|------------------------------------------------------------------------|
3. PURCHASE (BEGINNING OF THE ACCUMULATION PHASE)
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may make
the minimum payments of $100 per month if payroll deduction is used;
otherwise it is an aggregate of $2,000 per year. Prior approval must
be obtained from us for subsequent payments in excess of $500,000 or
for total payments in excess of $1,000,000. We reserve the right to
accept or decline any application or payment. In certain states we
also accept initial and additional premium payments by wire order.
Wire transmittals must be accompanied by sufficient electronically
transmitted data.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
Who may purchase this Contract? The Contract may be purchased by
individuals as part of a personal retirement plan (a "non-qualified
Contract"), or as a Contract that qualifies for special tax treatment
when purchased as either an Individual Retirement Annuity (IRA) or in
connection with a qualified retirement plan (each a "qualified
Contract").
The Contract is designed for people seeking long-term tax-deferred
accumulation of assets, generally for retirement or other long-term
purposes. The tax-deferred feature is more attractive to people in
high federal and state tax brackets. You should not buy this Contract
if you are looking for a short-term investment or if you cannot risk
getting back less money than you put in.
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4. THE INVESTMENT PORTFOLIOS
You can direct your money into any one or more of the following 21
mutual fund investment portfolios through our Separate Account A. The
investment portfolios are described in the prospectuses for the GCG
Trust, PIMCO Insurance Trust, and the Warburg Pincus Trust. If you
invest in any of the following investment portfolios, depending on
market conditions, you may make or lose money:
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THE GCG TRUST
Liquid Asset Series Value Equity Series
Limited Maturity Bond Series Research Series
Global Fixed Income Series Mid-Cap Growth Series
Total Return Series Strategic Equity Series
Equity Income Series Capital Appreciation Series
Fully Managed Series Small Cap Series
Rising Dividends Series Real Estate Series
Growth & Income Series Hard Asset Series
Growth Series Developing World Series
THE WARBURG PINCUS TRUST
International Equity Portfolio
PIMCO VARIABLE INSURANCE TRUST
PIMCO High Yield Bond Portfolio
PIMCO StocksPLUS Growth and Income Portfolio
5. EXPENSES
The Contract has insurance features and investment features, and there
are costs related to each. The Company deducts an annual contract
administrative charge of $30. We also collect a mortality and expense
risk charge and an asset-based administrative charge. These 2 charges
are deducted daily directly from the amounts in the investment
portfolios. The annual rate of the asset-based administrative charge
and the mortality and expense risk charge is as
follows:
Mortality & Expense Risk Charge................. 1.25%
Asset-Based Administrative Charge............... 0.15%
Total....................................... 1.40%
Each investment portfolio has charges for investment management fees
and other expenses. These charges, which vary by investment
portfolio, currently range from 0.59% to 1.83% annually (see table
below) of the portfolio's average daily net asset balance.
We deduct a surrender charge if you surrender your Contract or
withdraw an amount exceeding earnings plus the free withdrawal amount.
We also deduct a surrender charge if you annuitize under Plan
A-Option 1.
If you withdraw money from your Contract, or if you begin receiving
annuity payments, we may deduct a premium tax of 0%-3.5% to pay to
your state.
At any time you may make a withdrawal, without the imposition of a
surrender charge, of an amount equal to the sum of:
(1) earnings (Contract value less unliquidated premium payments not
withdrawn);
(2) payments in the Contract for more than eight years; and
(3) an amount which is equal to 10% of the payments in the Contract
for less than eight years, fixed at the time of the first
withdrawal in the contract year, plus 10% of the payments made
after the first withdrawal in the contract year but before the
next contract anniversary, less any withdrawals in the same
Contract year of payments less than eight years old.
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The following table shows the schedule of the surrender charge that
will apply. The surrender charge is a percent of each premium
payment.
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 |7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
SURRENDER CHARGE 8% | 7% | 6% | 5% | 4% | 3% |2% |1% | 0%
The following table is designed to help you understand the Contract
charges. The "Total Annual Insurance Charges" column includes the
maximum mortality and expense risk charge, the asset-based
administrative charge, and reflects the annual contract administrative
charge as 0.10% (based on an average contract value of $31,000). The
"Total Annual Investment Portfolio Charges" column reflects the
portfolio charges for each portfolio and are based on actual expenses
as of December 31, 1998, except for portfolios that commenced
operations during 1998 where the charges have been annualized. The
column "Total Annual Charges" reflects the sum of the previous two
columns. The columns under the heading "Examples" show you how much
you would pay under the Contract for a 1-year period and for a 10-year
period.
As required by the Securities and Exchange Commission, the examples
assume that you invested $1,000 in a Contract that earns 5% annually
and that you withdraw your money at the end of Year 1 or at the end of
Year 10. For Years 1 and 10, the examples show the total annual
charges assessed during that time. For these examples, the premium
tax is assumed to be 0%.
[Table with shaded heading and shaded lines for readability]
TOTAL ANNUAL EXAMPLES:
TOTAL ANNUAL INVESTMENT TOTAL TOTAL CHARGES AT THE END OF:
INSURANCE PORTFOLIO ANNUAL
INVESTMENT PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
THE GCG TRUST
Liquid Asset 1.50% 0.59% 2.09% $101.17 $240.39
Limited Maturity Bond 1.50% 0.60% 2.10% $101.27 $241.44
Global Fixed Income 1.50% 1.60% 3.10% $111.27 $340.06
Total Return 1.50% 0.97% 2.47% $104.98 $279.18
Equity Income 1.50% 0.98% 2.48% $105.08 $280.18
Fully Managed 1.50% 0.98% 2.48% $105.08 $280.18
Rising Dividends 1.50% 0.98% 2.48% $105.08 $280.18
Growth & Income 1.50% 1.08% 2.58% $106.08 $290.11
Growth 1.50% 1.09% 2.59% $106.18 $291.10
Value Equity 1.50% 0.98% 2.48% $105.08 $280.18
Research 1.50% 0.94% 2.44% $104.68 $276.17
Mid-Cap Growth 1.50% 0.95% 2.45% $104.78 $277.18
Strategic Equity 1.50% 0.99% 2.49% $105.18 $280.17
Capital Appreciation 1.50% 0.98% 2.48% $105.08 $280.18
Small Cap 1.50% 0.99% 2.49% $105.18 $281.17
Real Estate 1.50% 0.99% 2.49% $105.18 $281.17
Hard Assets 1.50% 1.00% 2.50% $105.28 $282.17
Developing World 1.50% 1.83% 3.33% $113.55 $361.27
THE WARBURG PINCUS TRUST
International Equity
1.50% 1.33% 2.83% $108.58 $314.48
PIMCO VARIABLE INSURANCE TRUST
PIMCO StocksPLUS Growth
and Income 1.50% 0.65% 2.15% $101.77 $246.62
PIMCO High Yield Bond 1.50% 0.75% 2.25% $102.77 $256.92
The "Total Annual Investment Portfolio Charges" reflect current
expense reimbursements for the Total Return and Global Fixed Income
portfolios. The Year 1 examples above include a 8% surrender charge.
For more detailed information, see the fee table in the prospectus for
the Contract.
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6. TAXES
Under a qualified Contract, your premiums are pre-tax contributions
and accumulate on a tax-deferred basis. Premiums and earnings are
generally taxed as income when you make a withdrawal or begin
receiving annuity payments, presumably when you are in a lower tax
bracket.
Under a non-qualified Contract, premiums are paid with after-tax
dollars, and any earnings will accumulate tax-deferred. You will be
taxed on these earnings, but not on premiums, when you withdraw them
from the Contract.
For owners of most qualified Contracts, when you reach age 70 1/2 (or
in some cases, retire), you will be required by federal tax laws to
begin receiving payments from your annuity or risk paying a penalty
tax. In those cases, we can calculate and pay you the minimum
required distribution amounts. If you are younger than 59 1/2 when
you take money out, in most cases, you will be charged a 10% federal
penalty tax on the amount withdrawn.
7. WITHDRAWALS
You can withdraw your money at any time during the accumulation phase.
You may elect in advance to take systematic withdrawals which are
described on page 8. Withdrawals above the free withdrawal amount may
be subject to a surrender charge. Income taxes and a penalty tax may
apply to amount withdrawn.
8. PERFORMANCE
The value of your Contract will fluctuate depending on the investment
performance of the portfolio(s) you choose. The following chart shows
average annual total return for each portfolio for the time periods
shown. These numbers reflect the deduction of the mortality and
expense risk charge, the asset-based administrative charge and the
annual contract fee, but do not reflect deductions for any surrender
charges. Please keep in mind that past performance is not a guarantee
of future results.
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[Table with shaded heading and shaded lines for readability]
CALENDAR YEAR
INVESTMENT PORTFOLIO 1998 1997 1996 1995
Managed by A I M Capital Management, Inc.
Capital Appreciation(1) 11.01 27.06 18.47 28.42
Strategic Equity(2) (0.67) 21.34 17.61 --
Managed by T. Rowe Price Associates, Inc.
Fully Managed 4.32 13.64 14.64 19.09
Equity Income(2) 6.65 15.70 7.14 17.33
Managed by Kayne Anderson Investment Management, LLC
Rising Dividends 12.44 27.91 18.85 29.31
Managed by EII Realty Securities, Inc.
Real Estate (14.76) 20.97 33.30 15.02
Managed by Eagle Asset Management, Inc.
Value Equity (0.04) 25.41 8.97 (33.47)
Managed by Fred Alger Management, Inc.
Small Cap 19.19 8.69 18.33 --
Managed by ING Investment Management, LLC
Limited Maturity Bond 5.27 5.08 2.75 10.21
Liquid Asset 3.48 3.53 3.41 4.09
Managed by Pacific Investment Management Company
PIMCO High Yield Bond -- -- -- --
PIMCO StocksPLUS Growth and Income -- -- -- --
Managed by Alliance Capital Management L.P.
Growth & Income(2) 10.31 23.30 -- --
Managed by Janus Capital Corporation
Growth(2) 24.96 14.05 -- --
Managed by Massachusetts Financial Services Company
Mid-Cap Growth 21.00 17.89 18.69 27.57
Total Return 9.93 19.08 12.00 22.72
Research 21.23 18.35 21.52 34.61
Managed by Baring International Investment Limited
Global Fixed Income 10.19 (0.84) 3.43 14.69
Hard Assets(2) (30.66) 4.58 31.27 9.19
Developing World(2) -- -- -- --
Managed by Warburg Pincus Asset Management, Inc.
International Equity Portfolio 3.78 (3.72) -- --
________________________
(1)Prior to April 1, 1999, a different firm managed the Portfolio.
(2)Prior to March 1, 1999, a different firm managed the Portfolio.
9. DEATH BENEFIT
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are the annuitant, if you die during
the accumulation phase, your beneficiary will receive a death benefit
unless the beneficiary is your surviving spouse and elects to continue
the Contract. The death benefit value is calculated at the close of
the business day on which we receive proof of death at our Customer
Service Center and the beneficiary's election regarding payment.
If the beneficiary elects not to take the death
benefit at the time of death, the death benefit in the future may be
affected. The proceeds may be received in a single sum or applied to
any of the annuity options within one year of death. If we do not
receive a request to apply the death benefit proceeds to an annuity
option, we will make a single sum distribution. We will generally pay
death benefit proceeds within 7 days after
our Customer Service Center has received sufficient information to
make the payment.
The death benefit may be subject to certain mandatory distribution
rules required by federal tax laws.
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DEATH PROCEEDS
If the annuitant is less than AGE 67 at the time of purchase, the
death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals; or
(3) the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to
attained age 76.
If the annuitant is BETWEEN THE AGES OF 67 AND 75 at the time of
purchase, the death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals; or
(3) The contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the death
benefit is the contract value.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplemental agreement
in effect.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
Please refer to the Contract for more details.
10. OTHER INFORMATION
FREE LOOK. If you cancel your Contract within 10 days after you
receive it, you will receive a full refund of your contract value.
For purposes of the refund during the free look period, your contract
value includes a refund of any charges deducted from your contract
value. Because of the market risks associated with investing in the
portfolios, the contract value returned may be greater or less than
the premium payment you paid. Some states require us to return to you
the amount of the paid premium (rather than the contract value) in
which case you will not be subject to investment risk during the free
look period. Also, in some states, you may be entitled to a longer
free look period. We determine your contract value at the close of
the business on the day we receive your written refund request.
TRANSFERS AMONG INVESTMENT PORTFOLIOS. Prior to the annuity start
date, you may transfer your contract value among the subaccounts in
which you are invested at the end of the free look period. We
currently do not charge you for transfers made during a contract year,
but reserve the right to charge the lesser of 2% of the Contract value
transferred or $25 for each transfer after the twelfth transfer in a
contract year. We also reserve the right to limit the number of
transfers you may make and may otherwise modify or terminate transfer
privileges if required by our business judgement or in accordance with
applicable law. The transfer fee will be deducted from the amount
which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service Center.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for
following instructions communicated by telephone that we reasonably
believe to be genuine. We require personal identifying information
to process a request for transfer made over the telephone.
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NO PROBATE. In most cases, when you die, the person you choose as
your beneficiary will receive the death benefit without going through
probate.
ADDITIONAL FEATURES. This Contract has other features you may be
interested in. These include:
Dollar Cost Averaging. This is a program that allows you to
invest a fixed amount of money in the investment portfolios each
month, which may give you a lower average cost per unit over time
than a single one-time purchase. Dollar cost averaging requires
regular investments regardless of fluctuating price levels, and
does not guarantee profits or prevent losses in a declining
market. The minimum amount which may be transferred is $100.
You must participate for at least five (5) months and have a
minimum of $500 in the subaccount from which dollar cost
averaging payments will be taken.
Systematic Withdrawals. During the accumulation phase, you
can arrange to have money sent to you at regular intervals
throughout the year. Within limits, these withdrawals will not
result in any withdrawal charge. Of course, any applicable
income and penalty taxes will apply on amounts withdrawn.
Automatic Rebalancing. If your contract value is $25,000 or
more, you may elect to have the Company automatically readjust
the money between your investment portfolios periodically to keep
the blend you select. However, we reserve the right to offer the
program on contracts with a lesser amount.
11.INQUIRIES
If you need more information after reading this prospectus, please
contact us at:
CUSTOMER SERVICE CENTER
P.O. BOX 2700
WEST CHESTER, PENNSYLVANIA 19380
(800) 366-0066
or your registered representative.
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EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
MAY 1, 1999
INDIVIDUAL FLEXIBLE PREMIUM
DEFERRED VARIABLE ANNUITY
EQUI-SELECT
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This prospectus describes an individual flexible premium deferred
variable Contract (the "Contract") offered by Equitable Life Insurance
Company of Iowa (the "Company," "we" or "our"). The Contract is
available in connection with certain retirement plans that qualify for
special federal income tax treatment ("qualified Contracts") as well
as those that do not qualify for such treatment ("non-qualified
Contracts").
The Contract provides a means for you to invest your premium payments
in one or more of 21 mutual fund investment portfolios. Your contract
value will vary daily to reflect the investment performance of the
investment portfolio(s) you select. The investment portfolios
available under your Contract and the portfolio managers are:
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T. ROWE PRICE ASSOCIATES, INC. ALLIANCE CAPITAL MANAGEMENT L. P.
Equity Income Series Growth & Income Series
Fully Managed Series JANUS CAPITAL CORPORATION
A I M CAPITAL MANAGEMENT, INC. Growth Series
Capital Appreciation Series MASSACHUSETTS FINANCIAL
Strategic Equity Series SERVICES COMPANY
KAYNE ANDERSON INVESTMENT Total Return Series
MANAGEMENT, LLC Research Series
Rising Dividends Series Mid-Cap Growth Series
EII REALTY SECURITIES, INC. ING INVESTMENT MANAGEMENT, LLC
Real Estate Series (AN AFFILIATE)
BARING INTERNATIONAL INVESTMENT Liquid Asset Series
LIMITED (AN AFFILIATE) Limited Maturity Bond Series
Global Fixed Income Series PACIFIC INVESTMENT MANAGEMENT
Hard Assets Series COMPANY
Developing World Series PIMCO High Yield Bond
EAGLE ASSET MANAGEMENT, INC. Portfolio
Value Equity Series PIMCO StocksPLUS Growth and
FRED ALGER MANAGEMENT, INC. Income Portfolio
Small Cap Series WARBURG PINCUS ASSET
MANAGEMENT, INC.
International Equity Portfolio
</TABLE>
The above mutual fund investment portfolios are purchased and held by
corresponding divisions of our Separate Account A. We refer to the
divisions as "subaccounts".
For Contracts sold in some states, not all subaccounts are available.
The prospectuses of the GCG Trust, Pimco Variable Insurance Trust and
Warburg Pincus Trust may contain portfolios not currently available in
connection with your Contract. You have the right to return the Contract
within 10 days after you receive it for a full refund of the contract
value (which may be more or less than the premium payments you paid),
or if required by your state, the original amount of your premium payment.
Longer free look periods apply in some states.
This prospectus provides information that you should know before
investing and should be kept for future reference. A Statement of
Additional Information, dated May 1, 1999, has been filed with the
Securities and Exchange Commission. It is available without charge
upon request. To obtain a copy of this document, write to our
Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania
19380 or call (800) 366-0066, or access the SEC's website
(http://www.sec.gov). The table of contents of the Statement of
Additional Information ("SAI") is on the last page of this prospectus
and the SAI is made part of this prospectus by reference.
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THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR DISAPPROVED
THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
AN INVESTMENT IN THE GCG TRUST, PIMCO VARIABLE INSURANCE TRUST OR THE
WARBURG PINCUS TRUST IS NOT A BANK DEPOSIT AND IS NOT INSURED OR
GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY OTHER
GOVERNMENT AGENCY.
THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE
GCG TRUST, PIMCO VARIABLE INSURANCE TRUST AND THE WARBURG PINCUS
TRUST.
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[Shaded Section Header]
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TABLE OF CONTENTS
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Index of Special Terms 1
Fees and Expenses 2
Performance Information 5
Accumulation Unit 5
Net Investment Factor 6
Condensed Financial Information 6
Financial Statements 6
Performance Information 6
Equitable Insurance Company of Iowa 7
The Trusts 7
Equitable of Iowa Separate Account A 8
The Investment Portfolios 8
Investment Objectives 8
Investment Portfolio Management Fees 10
The Annuity Contract 11
Contract Date and Contract Year 11
Annuity Start Date 11
Contract Owner 11
Annuitant 11
Beneficiary 12
Purchase and Availability of the Contract 12
Crediting of Premium Payments 12
Contract Value 13
Contract Values in the Subaccounts 13
Cash Surrender Value 14
Surrendering to Receive the Cash Surrender Value 14
Addition, Deletion or Substitution
of Subaccounts and Other Changes 14
Other Important Provisions 14
Withdrawals 15
Regular Withdrawals 15
Systematic Withdrawals 15
IRA Withdrawals 15
Transfers Among Your Investments 17
Dollar Cost Averaging 17
Automatic Rebalancing 18
Death Benefit 18
Death Benefit During the Accumulation Period 18
Death Proceeds 18
Death of Annuitant 19
Death of the Owner 19
Trust Beneficiary 20
Charges and Fees 20
Charges Deducted from the Contract Value 20
Surrender Charge 20
Free Withdrawal Amount 21
Surrender Charge for Excess Withdrawals 21
Premium Taxes 21
Administrative Charge 21
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TABLE OF CONTENTS (CONTINUED)
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Charges and Fees (continued)
Transfer Charge 21
Charges Deducted from the Subaccounts 22
Mortality and Expense Risk Charge 22
Asset-Based Administrative Charge 22
Trust Expenses 22
The Annuity Options 22
Selecting the Annuity Start Date 22
Selecting a Payment Plan 22
Fixed Payment Plans 23
Other Contract Provisions 24
Reports to Contract Owners 24
Suspension of Payments or Transfers 24
In Case of Errors in Your Application 25
Assigning the Contract as Collateral 25
Contract Changes-Applicable Tax Law 25
Free Look 25
Group or Sponsored Arrangements 25
Selling the Contract 25
Other Information 26
Voting Rights 26
Year 2000 Problem 26
State Regulation 26
Legal Proceedings 26
Legal Matters 26
Experts 27
Federal Tax Considerations 27
Statement of Additional Information
Table of Contents 32
Appendix A
Condensed Financial Information A1
Appendix B
Surrender Charge for Excess Withdrawals Example B1
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INDEX OF SPECIAL TERMS
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The following special terms are used throughout this prospectus.
Refer to the page(s) listed for an explanation of each term:
SPECIAL TERM PAGE
Accumulation Unit 5
Annuitant 1
Annuity Options 2
Annuity Start Date 11
Cash Surrender Value 14
Contract Date 11
Contract Owner 11
Contract Value 13
Contract Year 11
Free Withdrawal Amount 21
Net Investment Factor 6
Death Benefit 18
The following terms as used in this prospectus have the same or
substituted meanings as the corresponding terms currently used in the
Contract:
TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN
THE CONTRACT
Surrender Charge Withdrawal Charge
Automatic Rebalancing Automatic Portfolio Rebalancing
Systematic Withdrawals Automatic Withdrawals
Annuity Start Date Maturity Date
Premium Payment Purchase Payment
Annual Contract Administrative Charge Annual Contract Maintenance Charge
Business Day Valuation Date
Asset-Based Administrative Charge Administrative Charge
Contract Date Issue Date
Contract Year Contract Anniversary Date
Accumulation Phase Accumulation Period
Cash Surrender Value Contract Withdrawal Value
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[Shaded Section Header]
- -----------------------------------------------------------------------
FEES AND EXPENSES
- -----------------------------------------------------------------------
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 |7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
SURRENDER CHARGE 8% | 7% | 6% | 5% | 4% | 3% |2% |1% | 0%
TRANSFER CHARGE
There is no charge for the first 12 transfers in a Contract Year;
thereafter the fee is the lesser of 2% of the Contract value
transferred or $25.
ANNUAL CONTRACT ADMINISTRATIVE CHARGE
Administrative Charge......................... $ 30
SEPARATE ACCOUNT ANNUAL CHARGES***
Mortality and Expense Risk Charge............. 1.25%
Asset-Based Administrative Charge............. 0.15%
Total Separate Account Charges................ 1.40%
***As a percentage of average assets in each subaccount.
THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of an investment portfolio or on the combined average daily
net assets of the indicated groups of portfolios):
[Table with Shaded Heading and Shaded lines for readability]
|---------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(3) |
|---------------------------------------------------------------------------|
| Liquid Asset 0.59% 0.00% 0.59% |
| Limited Maturity Bond 0.60% 0.00% 0.60% |
| Global Fixed Income 1.60% 0.00% 1.60%(3) |
| Total Return 0.94% 0.03% 0.97%(3) |
| Equity Income 0.98% 0.00% 0.98% |
| Fully Managed 0.98% 0.00% 0.98% |
| Rising Dividends 0.98% 0.00% 0.98% |
| Growth & Income 1.08% 0.00% 1.08% |
| Growth 1.08% 0.01% 1.09% |
| Value Equity 0.98% 0.01% 0.99% |
| Research 0.94% 0.00% 0.94% |
| Mid-Cap Growth 0.94% 0.01% 0.95% |
| Strategic Equity 0.98% 0.01% 0.99% |
| Capital Appreciation 0.98% 0.00% 0.98% |
| Small Cap 0.98% 0.01% 0.99% |
| Real Estate 0.98% 0.01% 0.99% |
| Hard Assets 0.98% 0.02% 1.00% |
| Developing World 1.75% 0.08% 1.83% |
| All-Growth(4) 0.98% 0.01% 0.99% |
| Growth Opportunities(4) 1.10% 0.05% 1.15% |
|---------------------------------------------------------------------------|
(1) Fees decline as combined assets increase. See the prospectus
for the GCG Trust for more information.
(2) Other expenses generally consist of independent trustees fees
and certain expenses associated with investing in international
markets. Other expenses are based on actual expenses for the year
ended December 31, 1998, except for portfolios that commenced
operations in 1998 where the charges have been annualized.
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(3) Directed Services, Inc. is currently reimbursing expenses to
maintain total expenses at 0.97% for the Total Return portfolio and
1.60% for the Global Fixed Income portfolio as shown. Without this
reimbursement, and based on current estimates, total expenses
would be 0.98% for the Total Return portfolio and 1.74% for the Global
Fixed Income portfolio. This agreement will remain in place
through December 31, 1999.
(4) As of May 1, 1999, we no longer offer the All-Growth and
Growth Opportunities portfolios.
THE WARBURG PINCUS TRUST ANNUAL EXPENSES (as a percentage of the
average daily net assets of a portfolio):
[Table with Shaded Heading]
|---------------------------------------------------------------------------|
| ADVISORY OTHER TOTAL |
| PORTFOLIO FEES EXPENSES EXPENSES |
|---------------------------------------------------------------------------|
| International Equity Portfolio 1.00% 0.33% 1.33% |
|---------------------------------------------------------------------------|
(1) Total expenses are based on actual expenses for the fiscal
year ended December 31, 1998.
THE PIMCO TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of a portfolio):
[Table with Shaded Heading]
|---------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT(1) REIMBURSEMENT(1) |
|---------------------------------------------------------------------------|
| PIMCO High Yield Bond 0.50% 0.25%(2) 0.75% |
| PIMCO StocksPLUS Growth |
| and Income 0.40% 0.25% 0.65% |
|---------------------------------------------------------------------------|
(1) PIMCO has agreed to waive some or all of its other expenses,
subject to potential future reimbursement, to the extent that
total expenses for the PIMCO High Yield Bond portfolio and PIMCO
StocksPLUS portfolio would exceed 0.75% and 0.65%, respectively
due to payment by the portfolios of their pro rata portion of
Trustees' fees. Without this agreement, and based on current
estimates, total expenses would be 0.81% for the PIMCO High Yield
Bond portfolio and 0.72% for the PIMCO StocksPLUS Growth and
Income portfolio.
(2) Since the PIMCO High Yield Bond portfolio commenced
operations on April 30, 1998, other expenses as shown have been
annualized for the year ended December 31, 1998.
The purpose of the foregoing tables is to help you understand the
various costs and expenses that you will bear directly and indirectly.
See the prospectuses of the GCG Trust, the PIMCO Trust and the Warburg
Pincus Trust for additional information on portfolio expenses.
Premium taxes (which currently range from 0% to 3.5% of premium
payments) may apply, but are not reflected in the table above or the
examples below.
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EXAMPLES:
The following examples are based on an assumed 5% annual return.
If you surrender your contract at the end of the applicable time
period, or if you choose Payment plan A - Option 2, you would pay the
following expenses for each $1,000 invested:
------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset $101.17 $128.28 $156.90 $240.39
Limited Maturity Bond $101.27 $128.59 $157.41 $241.44
Global Fixed Income $111.27 $158.54 $207.22 $340.06
Total Return $104.98 $139.78 $176.14 $279.18
Equity Income $105.08 $140.08 $176.64 $280.18
Fully Managed $105.08 $140.08 $176.64 $280.18
Rising Dividends $105.08 $140.08 $176.64 $280.18
Growth & Income $106.08 $143.08 $181.64 $290.11
Growth $106.18 $143.38 $182.14 $291.10
Value Equity $105.08 $140.08 $176.64 $280.18
Research $104.68 $138.88 $174.64 $276.17
Mid-Cap Growth $104.78 $139.18 $175.14 $277.18
Strategic Equity $105.18 $140.38 $177.14 $281.17
Capital Appreciation $105.08 $140.08 $176.64 $280.18
Small Cap $105.18 $140.38 $177.14 $281.17
Real Estate $105.18 $140.38 $177.14 $281.17
Hard Assets $105.28 $140.68 $177.64 $282.17
Developing World $113.55 $165.31 $218.32 $361.27
All-Growth(1) $105.18 $140.38 $177.14 $281.17
Growth Opportunities(1) $106.78 $145.18 $185.93 $297.00
THE WARBURG PINCUS TRUST
International Equity
Portfolio $108.58 $150.55 $194.03 $314.48
THE PIMCO VARIABLE INSURANCE TRUST
PIMCO StocksPLUS
Growth and Income $101.77 $130.11 $159.96 $246.62
PIMCO High Yield Bond $102.77 $133.14 $165.05 $256.92
___________________
(1)As of May 1, 1999, we no longer offer the All-Growth or
Growth Opportunities portfolios.
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If you do not surrender your Contract or if you annuitize on the
annuity start date under a payment plan other than Plan A, Option 2,
you would pay the following expenses for each $1,000 invested:
------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Liquid Asset $21.17 $ 65.28 $111.90 $240.39
Limited Maturity Bond $21.27 $ 65.59 $112.41 $241.44
Global Fixed Income $31.27 $ 95.54 $162.22 $340.06
Total Return $24.98 $ 76.78 $131.14 $279.18
Equity Income $25.08 $ 77.08 $131.64 $280.18
Fully Managed $25.08 $ 77.08 $131.64 $280.18
Rising Dividends $25.08 $ 77.08 $131.64 $280.18
Growth & Income $26.08 $ 80.08 $136.64 $290.11
Growth $26.18 $ 80.38 $137.14 $291.10
Value Equity $25.08 $ 77.08 $131.64 $280.18
Research $24.68 $ 75.88 $129.64 $276.17
Mid-Cap Growth $24.78 $ 76.18 $130.14 $277.18
Strategic Equity $25.18 $ 77.38 $132.14 $281.17
Capital Appreciation $25.08 $ 77.08 $131.64 $280.18
Small Cap $25.18 $ 77.38 $132.14 $281.17
Real Estate $25.18 $ 77.38 $132.14 $281.17
Hard Assets $25.28 $ 77.68 $132.64 $282.17
Developing World $33.55 $102.31 $173.32 $361.27
All-Growth(1) $25.18 $ 77.38 $132.14 $281.17
Growth Opportunities(1) $26.78 $ 82.18 $140.93 $297.00
THE WARBURG PINCUS TRUST
International Equity
Portfolio $28.58 $ 87.55 $149.03 $314.48
THE PIMCO VARIABLE INSURANCE TRUST
PIMCO StocksPLUS
Growth & Income $21.77 $ 67.11 $114.96 $246.62
PIMCO High Yield Bond $22.77 $ 70.14 $120.05 $256.92
__________________________________
(1) As of May 1, 1999, we no longer offer the All-Growth and
Growth Opportunities portfolios.
The example above reflects the annual administrative charge as an
annual charge of 0.10% of assets (based on an average contract value
of $31,000). Your charge would be higher for smaller Contract values
and lower for higher Contract values. Premium taxes may apply and are
not reflected in the example.
THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT.
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PERFORMANCE INFORMATION
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ACCUMULATION UNIT
We use accumulation units to calculate the value of a Contract. Each
subaccount of Separate Account A has its own accumulation unit value.
The accumulation units are valued each business day that the New York
Stock Exchange is open for trading. Their values may increase or
decrease from day to day according to a Net Investment Factor, which
is primarily based on the investment performance of the applicable
investment portfolio. Shares in the investment portfolios are valued
at their net asset value.
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NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance of the subaccount.
The Net Investment Factor is calculated as follows:
(1) We take the net asset value of the subaccount at the end of
each business day.
(2) We add to (1) the amount of any dividend or capital gains
distribution declared for the subaccount and reinvested in such
subaccount. We subtract from that amount a charge for our
taxes, if any.
(3) We divide (2) by the net asset value of the investment
portfolio at the end of the preceding business day.
(4) We then subtract the daily mortality and expense risk charge
and the daily asset-based administrative charge from each
subaccount.
Calculations for the investment portfolios are made on a per share
basis.
CONDENSED FINANCIAL INFORMATION
Tables containing (i) the accumulation unit value history of each
subaccount of Equitable Life Insurance Company of Iowa Separate
Account A available through the Contract, offered in this prospectus
and (ii) the total investment value history of each subaccount are
presented in Appendix A - Condensed Financial Information.
FINANCIAL STATEMENTS
The audited financial statements of Equitable Life Insurance Company
of Iowa Separate Account A for the years ended December 31, 1998 and
1997 and Equitable Life Insurance Company of Iowa for the years ended
December 31, 1998, 1997 and 1996 are included in the Statement of
Additional Information.
PERFORMANCE INFORMATION
From time to time, we may advertise or include in reports to contract
owners performance information for the subaccounts of Separate Account
A, including the average annual total return performance, yields and
other nonstandard measures of performance. Such performance data will
be computed, or accompanied by performance data computed, in
accordance with standards defined by the SEC.
Except for the Liquid Asset subaccount, quotations of yield for the
subaccounts will be based on all investment income per unit (contract
value divided by the accumulation unit) earned during a given 30-day
period, less expenses accrued during such period. Information on
standard total average annual return performance will include average
annual rates of total return for 1, 5 and 10 year periods, or lesser
periods depending on how long the subaccount of Separate Account A has
been in existence. We may show other total returns for periods less
than one year. Total return figures will be based on the actual
historic performance of the subaccounts of Separate Account A,
assuming an investment at the beginning of the period, withdrawal of
the investment at the end of the period, and the deduction of all
applicable portfolio and contract charges. We may also show rates of
total return on amounts invested at the beginning of the period with
no withdrawal at the end of the period. Total return figures which
assume no withdrawals at the end of the period will reflect all
recurring charges, but will not reflect the surrender charge. In
addition, we may present historic performance data for the mutual fund
investment portfolios since their inception reduced by some or all of
the fees and charges under the Contract. Such adjusted historic
performance includes data that precedes the inception dates of the
subaccounts of Separate Account A. This data is designed to show the
performance that would have resulted if the Contract had been in
existence during that time.
Current yield for the Liquid Asset subaccount is based on income
received by a hypothetical investment over a given 7-day period, less
expenses accrued, and then "annualized" (i.e., assuming that the 7-day
yield would be received for 52 weeks). We calculate "effective yield"
for the Liquid Asset subaccount in a manner similar
to that used to calculate yield, but when annualized, the income
earned by the investment is assumed to be reinvested. The
"effective yield" will thus be slightly higher than the "yield"
because of the compounding
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effect of earnings. We calculate
quotations of yield for the remaining subaccounts on all investment
income per accumulation unit earned during a given 30-day period,
after subtracting fees and expenses accrued during the period.
We may compare performance information for a subaccount to: (i) the
Standard & Poor's 500 Stock Index, Dow Jones Industrial Average,
Donoghue Money Market Institutional Averages, or any other applicable
market indices, (ii) other variable annuity separate accounts or other
investment products tracked by Lipper Analytical Services (a widely
used independent research firm which ranks mutual funds and other
investment companies), or any other rating service, and (iii) the
Consumer Price Index (measure for inflation) to assess the real rate
of return from an investment in the Contract. Our reports and
promotional literature may also contain other information including
the ranking of any subaccount based on rankings of variable annuity
separate accounts or other investment products tracked by Lipper
Analytical Services or by similar rating services.
Performance information reflects only the performance of a
hypothetical contract and should be considered in light of other
factors, including the investment objective of the investment
portfolio and market conditions. Please keep in mind that past
performance is not a guarantee of future results.
[Shaded Section Header]
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EQUITABLE LIFE INSURANCE COMPANY OF IOWA
- ------------------------------------------------------------------------
Equitable Life Insurance Company of Iowa ("Equitable Life") was
founded in Iowa in 1867 and is the oldest life insurance company west
of the Mississippi. The Company is currently licensed to do business
in the District of Columbia and all states except New Hampshire and
New York. The Company is a wholly owned subsidiary of Equitable of
Iowa Companies, Inc. ("Equitable of Iowa"), a Delaware corporation,
which in turn is an indirect wholly owned subsidiary of ING Groep N.V.
("ING"). On October 24, 1997, ING acquired all interest in Equitable
of Iowa and its subsidiaries. ING, based in The Netherlands, is a
global financial services holding company with approximately $461.8
billion in assets as of December 31, 1998.
Equitable of Iowa is the holding company for Golden American Life
Insurance Company, Directed Services, Inc., the investment manager of
the GCG Trust, and other interests. Equitable of Iowa and another ING
affiliate own ING Investment Management, LLC, a portfolio manager of
the GCG Trust. ING also owns Baring International Investment Limited,
another portfolio manager of the GCG Trust.
Our principal office is located at 909 Locust Street, Des Moines, Iowa
50309.
[Shaded Section Header]
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THE TRUSTS
- ------------------------------------------------------------------------
The GCG Trust is a mutual fund whose shares are available to separate
accounts funding variable annuity and variable life insurance policies
offered by Equitable Life. The GCG Trust also sells its shares to
separate accounts of other insurance companies, both affiliated and
not affiliated with Equitable Life. Pending SEC approval, shares of
the GCG Trust may also be sold to certain qualified pension and
retirement plans.
The Warburg Pincus Trust is also a mutual fund whose shares are
available to separate accounts of insurance companies, including
Equitable Life, for both variable annuity contracts and variable life
insurance policies and by qualified pension and retirement plans. The
principal address of the Warburg Pincus Trust is 466 Lexington Avenue,
New York, New York 10017-3147.
The PIMCO Insurance Trust is also a mutual fund whose shares are
available to separate accounts of insurance companies, including
Golden American, for both variable annuity contracts and variable life
insurance policies and by qualified pension and retirement plans. The
principal address of the PIMCO Insurance Trust is 840 Newport Center
Drive, Suite 300, Newport Beach, CA 92660.
In the event that, due to differences in tax treatment or other
considerations, the interests of contract owners of various contracts
participating in the Trusts conflict, we, the Boards of Trustees of
the GCG Trust, PIMCO
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Insurance Trust, Warburg Pincus Trust, Directed
Services, Inc., Warburg Pincus Asset Management, Inc., Pacific
Investment Management Company and any other insurance companies
participating in the Trusts will monitor events to identify and
resolve any material conflicts that may arise.
YOU WILL FIND COMPLETE INFORMATION ABOUT THE GCG TRUST, PIMCO
INSURANCE TRUST AND THE WARBURG PINCUS TRUST IN THE ACCOMPANYING
TRUSTS' PROSPECTUSES. YOU SHOULD READ THEM CAREFULLY BEFORE
INVESTING.
[Shaded Section Header]
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EQUITABLE OF IOWA SEPARATE ACCOUNT A
- ------------------------------------------------------------------------
Equitable Life Insurance Company of Iowa Separate Account A ("Account
A") was established as a separate account of the Company on July 14,
1988. It is registered with the Securities and Exchange Commission as
a unit investment trust under the Investment Company Act of 1940.
Account A is a separate investment account used for our variable
annuity contracts. We own all the assets in Account A but such assets
are kept separate from our other accounts.
Account A is divided in subaccounts. Each subaccount invests
exclusively in shares of one mutual fund investment portfolio of the
GCG Trust, PIMCO Insurance Trust and the Warburg Pincus Trust. Each
investment portfolio has its own distinct investment objectives and
policies. Income, gains and losses, realized or unrealized, of a
portfolio are credited to or charged against the corresponding
subaccount of Account A without regard to any other income, gains or
losses of the Company. Assets equal to the reserves and other
contract liabilities with respect to each are not chargeable with
liabilities arising out of any other business of the Company. They
may, however, be subject to liabilities arising from subaccounts whose
assets we attribute to other variable annuity contracts supported by
Account A. If the assets in Account A exceed the required reserves
and other liabilities, we may transfer the excess to our general
account. We are obligated to pay all benefits and make all payments
provided under the Contracts.
We currently offer other variable annuity contracts that invest in
Account A but are not discussed in this prospectus. Account A may
also invest in other investment portfolios which are not available
under your Contract.
[Shaded Section Header]
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THE INVESTMENT PORTFOLIOS
- ------------------------------------------------------------------------
During the accumulation phase, you may allocate your purchase payments
and contract value to any of the investment portfolios listed below.
YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE TO THE
INVESTMENT PORTFOLIOS AND MAY LOSE YOUR PRINCIPAL.
INVESTMENT OBJECTIVES
The investment objective of each investment portfolio is set forth
below. You should understand that there is no guarantee that any
portfolio will meet its investment objectives. Meeting objectives
depends on various factors, including, in certain cases, how well the
portfolio managers anticipate changing economic and market conditions.
MORE DETAILED INFORMATION ABOUT THE INVESTMENT PORTFOLIOS CAN BE FOUND
IN THE PROSPECTUSES FOR THE GCG TRUST, PIMCO INSURANCE TRUST AND THE
WARBURG PINCUS TRUST. YOU SHOULD READ THESE PROSPECTUSES BEFORE
INVESTING.
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[Shaded Table Header]
INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE
- - ------------------------------------------------------------------------
Liquid Asset Seeks high level of current income consistent with
the preservation of capital and liquidity.
Invests primarily in obligations of the U.S.
Government and its agencies and
instrumentalities, bank obligations,
commercial paper and short-term corporate debt
securities. All securities will mature in
less than one year.
----------------------------------------------------
Limited Maturity Seeks highest current income consistent with
Bond low risk to principal and liquidity.
Also seeks to enhance its total return through
capital appreciation when market factors, such as
falling interest rates and rising bond prices,
indicate that capital appreciation may be
available without significant risk to
principal.
Invests primarily in diversified limited maturity
debt securities with average maturity dates of
five years or shorter and in no cases more than
seven years.
----------------------------------------------------
Global Fixed Seeks high total return.
Income Invests primarily in high-grade fixed income
securities, both foreign and domestic.
----------------------------------------------------
Total Return Seeks above-average income (compared to a portfolio
entirely invested in equity securities)
consistent with the prudent employment of
capital.
Invests primarily in a combination of equity
and fixed income securities.
----------------------------------------------------
Equity Income Seeks substantial dividend income as well as long-
term growth of capital.
Invests primarily in common stocks of well-
established companies paying above-average
dividends.
----------------------------------------------------
Fully Managed Seeks, over the long term, a high total investment
return consistent with the preservation of
capital and with prudent investment risk.
Invests primarily in the common stocks of
established companies believed by the
portfolio manager to have above-average
potential for capital growth.
----------------------------------------------------
Rising Dividends Seeks capital appreciation. A secondary
objective is dividend income.
Invests in equity securities that meet the
following quality criteria: regular dividend
increases; 35% of earnings reinvested
annually; and a credit rating of "A" to "AAA".
----------------------------------------------------
Growth & Income Seeks long-term total return.
Invests primarily in common stocks of
companies where the potential for change
(earnings acceleration) is significant.
----------------------------------------------------
Growth Seeks capital appreciation.
Invests primarily in common stocks of growth
companies that have favorable relationships between
price/earnings ratios and growth rates in sectors
offering the potential for above-average returns.
----------------------------------------------------
Value Equity Seeks capital appreciation. Dividend income
is a secondary objective.
Invests primarily in common stocks of domestic
and foreign issuers which meet quantitative
standards relating to financial soundness and
high intrinsic value relative to price.
----------------------------------------------------
Research Seeks long-term growth of capital and future income.
Invests primarily in common stocks or
securities convertible into common stocks of
companies believed to have better than average
prospects for long-term growth.
----------------------------------------------------
Mid-Cap Growth Seeks long-term growth of capital.
Invests primarily in equity securities of
companies with medium market capitalization
which the portfolio manager believes have
above-average growth potential.
----------------------------------------------------
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Strategic Equity Seeks capital appreciation.
Invests primarily in common stocks of medium-
and small-sized companies.
----------------------------------------------------
Capital Seeks long-term capital growth.
Appreciation Invests primarily in equity securities
believed by the portfolio manager to be
undervalued.
----------------------------------------------------
Small Cap Seeks long-term capital appreciation.
Invests primarily in equity securities of
companies that have a total market
capitalization within the range of companies
in the Russell 2000 Growth Index or the
Standard & Poor's Small-Cap 600 Index.
----------------------------------------------------
Real Estate Seeks capital appreciation. Current income is a
secondary objective.
Invests primarily in publicly-traded real
estate equity securities.
----------------------------------------------------
Hard Assets Seeks long-term capital appreciation.
Invests primarily in hard asset securities.
Hard asset companies produce a commodity which
the portfolio manager is able to price on a
daily or weekly basis.
----------------------------------------------------
Developing World Seeks capital appreciation.
Invests primarily in equity securities of
companies in developing or emerging countries.
----------------------------------------------------
International Seeks long term capital appreciation by investing
Equity primarily in broadly diversified portfolio of equity
securities of companies, that in the judgement of
Warburg Pincus have their principal business
activites and interest outside the United States.
Invests substantially all of its assets - but no
less than 65% of its total assets in common stocks,
warrants and securities convertible into or
exchangable for common stocks. Generally, the
Portfolio will hold no less than 65% of its total
assets in at least three countries other than the
United States.
----------------------------------------------------
PIMCO High Yield Seeks to maximize total return, consistent with
Bond preservation of capital and prudent investment
management.
Invests in at least 65% of its assets in a
diversified portfolio of junk bonds rated at least
B by Moody's Investor Services, Inc. or Standard &
Poor's or, if unrated, determined by the portfolio
manager to be of comparable quality.
----------------------------------------------------
PIMCO StocksPLUS Seeks to achieve a total return which exceeds
Growth and the total return performance of the S&P 500.
Income Invests primarily in common stocks, options,
futures, options on futures and swaps.
----------------------------------------------------
As of May 1, 1999, we no longer offer the following two portfolios:
All-Growth Seeks capital appreciation.
Invests primarily in growth securities of
middle-range capitalization companies.
----------------------------------------------------
Growth
Opportunities Seeks capital appreciation.
Invests primarily in equity securities of
domestic companies emphasizing companies with
market capitalizations of $1 billion or more.
----------------------------------------------------
INVESTMENT PORTFOLIO MANAGEMENT FEES
Directed Services, Inc. serves as the overall manager of the GCG
Trust. Warburg Pincus Management, Inc. serves as the overall adviser
of the Warburg Pincus Trust and Pacific Investment Management Company
serves as the overall advisor to the PIMCO Insurance Trust. Directed
Services, Inc., Pacific Investment Management Company and Warburg
Pincus Asset Management, Inc. provide or procure, at their own
expense, the services necessary for the operation of the portfolios.
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See the cover page of this prospectus for the names of the
corresponding portfolio managers. Directed Services, Inc., Pacific
Investment Management Company and Warburg Pincus Asset Management,
Inc. do not bear the expense of brokerage fees and other transactional
expenses for securities, taxes (if any) paid by a portfolio, interest
on borrowing, fees and expenses of the independent trustees, and
extraordinary expenses, such as litigation or indemnification expenses.
The GCG Trust pays Directed Services, Inc. for its services a monthly
fee based on the annual rates of the average daily net assets of the
investment portfolios. Directed Services, Inc. (and not the GCG
Trust) in turn pays each portfolio manager a monthly fee for managing
the assets of the portfolios.
The Warburg Pincus Trust pays Warburg Pincus Asset Management, Inc. a
monthly advisory fee and a monthly administrative fee of 1.00% based
on the average daily net assets of each of the investment portfolios
for managing the assets of the portfolios and for administering the
Warburg Pincus Trust.
The PIMCO Insurance Trust pays PIMCO a monthly advisory fee and a
monthly administrative fee of 0.25% based on the average daily net
assets of each of the investment portfolios for managing the assets of
the portfolios and for administering the PIMCO Insurance Trust.
More detailed information about each portfolio's management fees can
be found in the prospectuses for each Trust. You should read these
prospectuses before investing.
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THE ANNUITY CONTRACT
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The Contract described in this prospectus is an individual flexible
premium deferred variable annuity Contract. The Contract provides a
means for you to invest in one or more of the available mutual fund
portfolios of the GCG Trust, PIMCO Insurance Trust and the Warburg
Pincus Trust in which the subaccounts funded by Account A invest.
CONTRACT DATE AND CONTRACT YEAR
The date the Contract became effective is the contract date. Each 12-
month period following the contract date is a contract year.
ANNUITY START DATE
The annuity start date is the date you start receiving annuity
payments under your Contract. The Contract, like all deferred
variable annuity contracts, has two phases: the accumulation phase and
the income phase. The accumulation phase is the period between the
contract date and the annuity start date. The income phase begins
when you start receiving regular annuity payments from your Contract
on the annuity start date.
CONTRACT OWNER
You are the contract owner. You are also the annuitant unless another
annuitant is named in the application. You have the rights and
options described in the Contract. One or more persons may own the
Contract.
JOINT OWNER. For non-qualified Contracts only, joint owners may be
named in a written request before the Contract is in effect. Joint
owners may independently exercise transfers and other transactions
allowed under the Contract. All other rights of ownership must be
exercised by both owners. Joint owners own equal shares of any
benefits accruing or payments made to them. All rights of a joint
owner end at death of that owner if the other joint owner survives.
The entire interest of the deceased joint owner in the Contract will
pass to the surviving joint owner.
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ANNUITANT
The annuitant is the person designated by you to be the measuring life
in determining annuity payments. The annuitant also determines the
death benefit. The annuitant's age determines when the income phase
must begin and the amount of the annuity payments to be paid. You are
the annuitant unless you choose to name another person. The annuitant
may not be changed after the Contract is in effect.
The contract owner will receive the annuity benefits of the Contract
if the annuitant is living on the annuity start date.
BENEFICIARY
The beneficiary is named by you in a written request. The beneficiary
is the person who receives any death benefit proceeds. We pay death
benefits to the primary beneficiary (unless there are joint owners, in
which case death proceeds are payable to the surviving owner(s)).
You have the right to change beneficiaries during the annuitant's
lifetime unless you have designated an irrevocable beneficiary. When
an irrevocable beneficiary has been designated, you and the
irrevocable beneficiary may have to act together to exercise some of
the rights and options under the Contract.
Unless you, as the owner, state otherwise, all rights of a
beneficiary, including an irrevocable beneficiary, will end if he or
she dies before the annuitant. If any beneficiary dies before the
annuitant, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests. If all
beneficiaries die before the annuitant, upon the annuitant's death we
will pay the death proceeds to the owner, if living, otherwise to the
owner's estate or legal successors.
CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's
lifetime, you may transfer ownership of a non-qualified Contract. A
change in ownership may affect the amount of the death benefit and the
guaranteed death benefit. You may also change the beneficiary. All
requests for changes must be in writing and submitted to our Customer
Service Center in good order. The change will be effective as of the
day you sign the request. The change will not affect any payment made
or action taken by us before recording the change.
PURCHASE AND AVAILABILITY OF THE CONTRACT
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may make
the minimum payments of $100 per month if payroll deduction is used;
otherwise it is an aggregate of $2,000 per year. Prior approval must
be obtained from us for subsequent payments in excess of $500,000 or
for total payments in excess of $1,000,000. We reserve the right to
accept or decline any application or payment.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
CREDITING OF PREMIUM PAYMENTS
We will allocate your premium payments within 2 business days after
receipt, if the application and all information necessary for
processing the Contract are complete. In certain states we also
accept initial and additional premium payments by wire order. Wire
transmittals must be accompanied by sufficient electronically
transmitted data. We may retain premium payments for up to 5 business
days while attempting to complete an incomplete application. If the
application cannot be completed within this period, we will inform you
of the reasons for the delay. We will also return the premium payment
immediately unless you direct us to hold it until the application is
completed. Once the completed application is received, we will
allocate the payment within 2 business days. We will make inquiry to
discover any missing information related to subsequent payments. For
any subsequent premium payments, the payment will be credited at the
accumulation unit value next determined after receipt of your premium
payment.
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We will allocate your initial premium payment to the subaccount(s) of
the Separate Account A selected by you. Unless otherwise changed by
you, subsequent premium payments are allocated in the same manner as
the initial premium payment.
Once we allocate your premium payment to the subaccount(s) selected by
you, we convert the premium payment into accumulation units. We
divide the amount of the premium payment allocated to a particular
subaccount by the value of an accumulation unit for the subaccount to
determine the number of accumulation units of the subaccount to be
held in Account A with respect to the Contract. The net investment
results of each subaccount vary with its investment performance.
If your Contract is issued in a state that requires us to return your
premium payment during the free look period, then the portion of the
first premium payment that you have directed to the subaccounts will be
placed in a subaccount specifically designated by us (currently the Liquid
Asset subaccout) for the duration of the free look period. After the free
look period, we will convert your
contract value (your initial premium, plus any earnings less any
expenses) into accumulation units of the subaccounts you previously
selected. The accumulation units will be allocated based on the
accumulation unit value next computed for each subaccount.
If your premium payment was transmitted by wire order from your
broker-dealer, we will follow one of the following two procedures
after we receive and accept the wire order and investment
instructions. The procedure we follow depends on state approved
and the procedures of your broker-dealer.
(1) If either your state or broker-dealer do not permit us to issue
a Contract without an application, we reserve the right to
rescind the Contract if we do not receive and accept a properly
completed application or enrollment form within 15 days of the
premium payment. If we do not receive the application or form
within 15 days of the premium payment, we will refund the
contract value plus any charges we deducted, and the Contract
will be voided. Some states require that we return the premium
paid, in which case we will comply.
(2) If your state and broker dealer allow us to issue a Contract
without an application, we will issue and mail the Contract to
you, together with an Application Acknowledgement Statement for
your execution. Until our Customer Service Center receives the
executed Application Acknowledgement Statement, neither you nor
the broker-dealer may execute any financial transactions on
your Contract unless they are requested in writing by you.
CONTRACT VALUE
We determine your contract value on a daily basis beginning on the
contract date. Your contract value is the sum of the contract value
in each subaccount in which you are invested.
CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the contract
value in the subaccount in which you are invested is equal to the
initial premium paid and designated to be allocated to the subaccount.
On the contract date, we allocate your contract value to each
subaccount specified by you, unless the Contract is issued in a state
that requires the return of premium payments during the free look
period, in which case, the portion of your initial premium will be
allocated to a subaccount specially designated by the Company during
the free look period for this purpose (currently, the Liquid Asset
subaccount).
On each business day after the contract date, we calculate the amount
of contract value in each subaccount as follows:
(1) We take the contract value in the subaccount at the end of the
preceding business day.
(2) We multiply (1) by the subaccount's Net Investment Factor since
the preceding business day.
(3) We add (1) and (2).
(4) We add to (3) any additional premium payments, and then add or
subtract transfers to or from that subaccount.
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(5) We subtract from (4) any withdrawals and any related charges,
and then subtract any contract fees, and distribution fee
(annual sales load) and premium taxes.
CASH SURRENDER VALUE
The cash surrender value is the amount you receive when you surrender
the Contract. The cash surrender value will fluctuate daily based on
the investment results of the subaccounts in which you are invested.
We do not guarantee any minimum cash surrender value. On any date
during the accumulation phase, we calculate the cash surrender value
as follows: we start with your contract value, then we deduct any
surrender charge, any charge for premium taxes, and any other charges
incurred but not yet deducted.
SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE
You may surrender the Contract at any time while the annuitant is
living and before the annuity start date. A surrender will be
effective on the date your written request and the Contract are
received at our Customer Service Center. We will determine and pay
the cash surrender value at the price next determined after receipt of
your request. Once paid, all benefits under the Contract will be
terminated. For administrative purposes, we will transfer your money
to a specially designated subaccount (currently the Liquid Asset
subaccount) prior to processing the surrender. This transfer will
have no effect on your cash surrender value. You may receive the cash
surrender value in a single sum payment or apply it under one or more
annuity options. We will usually pay the cash surrender value within
7 days.
Consult your tax advisor regarding the tax consequences associated
with surrendering your Contract. A surrender made before you reach
age 59 1/2 may result in a 10% tax penalty. See "Federal Tax
Considerations" for more details.
ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES
We may make additional subaccounts available to you under the
Contract. These subaccounts will invest in investment portfolios we
find suitable for your Contract.
We may amend the Contract to conform to applicable laws or
governmental regulations. If we feel that investment in any of the
investment portfolios has become inappropriate to the purposes of the
Contract, we may, with approval of the SEC (and any other regulatory
agency, if required) substitute another portfolio for existing and
future investments.
We also reserve the right to: (i) deregister Account A under the 1940
Act; (ii) operate Account A as a management company under the 1940 Act
if it is operating as a unit investment trust; (iii) operate Account A
as a unit investment trust under the 1940 Act if it is operating as a
managed separate account; (iv) restrict or eliminate any voting rights
as to Account A; and (v) combine Account A with other accounts.
We will of course provide you with written notice before any of these
changes are effected.
We offer other variable annuity contracts that also invest in the same
portfolios of the Trusts. These contracts have different charges that
could effect their performance, and may offer different benefits more
suitable to your needs. To obtain more information about these other
contracts, contact our Customer Service Center or your registered
representative.
OTHER IMPORTANT PROVISIONS
See "Withdrawals," "Transfers Among Your Investments," "Death Benefit
Choices," "Charges and Fees," "The Annuity Options" and "Other
Contract Provisions" in this prospectus for information on other
important provisions in your Contract.
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WITHDRAWALS
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Any time prior to the annuity start date and before the death of the
annuitant, you may withdraw all or part of your money. Keep in mind
that if at least $100 does not remain in a subaccount, we will treat
it as a request to surrender the Contract. For Contracts issued in
Idaho, no withdrawal may be made for 30 days after the date of
purchase. We will terminate the Contract if a total withdrawal is
made. If any single withdrawal or the sum of withdrawals exceeds the
Free Withdrawal Amount, you will incur a surrender charge. See
"Charges and Fees-Surrender Charge for Excess Withdrawals." You
need to submit to us a written request specifying accounts from which
amounts are to be withdrawn, otherwise the withdrawal will be made on
a pro rata basis from all of the subaccounts in which you are
invested. We will pay the amount of any withdrawal from the
subaccounts within (7) calendar days of receipt of a request, unless
the "Suspension of Payments or Transfers" provision is in effect. We
will determine the contract value as of the close of business on the
day we receive your withdrawal request at our Customer Service Center.
The Contract value may be more or less than the premium payments made.
Keep in mind that a withdrawal will result in the cancellation of
accumulation units for each applicable subaccount of the Account A.
For administrative purposes, we will transfer your money to a
specially designated subaccount (currently, the Liquid Asset
subaccount) prior to processing the withdrawal. This transfer will
not effect the withdrawal amount you receive.
We offer the following three withdrawal options:
REGULAR WITHDRAWALS
After the free look period, you may make regular withdrawals. Each
withdrawal must be a minimum of $100 or your entire interest in
the subaccount.
SYSTEMATIC WITHDRAWALS
You may choose to receive automatically systematic withdrawals on the
15th of each month, or any other monthly date mutually agreed upon,
from your contract value in the subaccount(s). Each withdrawal
payment must be at least $100 (or the owner's entire interest in the
subaccount, if less) and is taken pro rata from the subaccount(s). We
reserve the right to charge a fee for systematic withdrawals.
Currently, however, there are no charges for systematic withdrawals.
The minimum Contract value which must remain in a subaccount after any
partial withdrawal is $100.00 or the withdrawal transaction will be
deemed a request to surrender the contract.
You may change the amount of your systematic withdrawal once each
contract year or cancel this option at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date. You may elect to have this
option begin in a contract year where a regular withdrawal has been
taken but you may not change the amount of your withdrawals in any
contract year during which you had previously taken a regular
withdrawal. You may not elect this if you are taking IRA withdrawals.
IRA WITHDRAWALS
If you have a non-Roth IRA Contract and will be at least age 70 1/2
during the current calendar year, you may elect to have distributions
made to you to satisfy requirements imposed by federal tax law. IRA
withdrawals provide payout of amounts required to be distributed by
the Internal Revenue Service rules governing mandatory distributions
under qualified plans. We will send you a notice before your
distributions commence. You may elect to take IRA withdrawals at that
time, or at a later date. You may not elect IRA withdrawals and
participate in systematic withdrawals at the same time. If you do not
elect to take IRA withdrawals, and distributions are required by
federal tax law, distributions adequate to satisfy the requirements
imposed by federal tax law may be made. Thus, if you are
participating in systematic withdrawals, distributions under that
option must be adequate to satisfy the mandatory distribution rules
imposed by federal tax law.
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You may choose to receive IRA withdrawals on a monthly, quarterly or
annual basis. Under this option, you may elect payments to start as
early as 28 days after the contract date. You select the day of the
month when the withdrawals will be made, but it cannot be later than
the 28th day of the month. If no date is selected, we will make the
withdrawals on the same calendar day of the month as the contract
date.
You may request that we calculate for you the amount that is required
to be withdrawn from your Contract each year based on the information
you give us and various choices you make. For information regarding
the calculation and choices you have to make, see the Statement of
Additional Information. The minimum dollar amount you can withdraw is
$100. When we determine the required IRA withdrawal amount for a
taxable year based on the frequency you select, if that amount is less
than $100, we will pay $100. At any time where the IRA withdrawal
amount is greater than the contract value, we will cancel the Contract
and send you the amount of the cash surrender value.
You may change the payment frequency of your IRA withdrawals once each
contract year or cancel this option at any time by sending us
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date.
CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED
WITH TAKING WITHDRAWALS. You are responsible for determining that
withdrawals comply with applicable law. A withdrawal made before the
taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See
"Federal Tax Considerations" for more details.
TEXAS OPTIONAL RETIREMENT PROGRAM
A Contract issued to a participant in the Texas Optional Retirement
Program ("ORP") will contain an ORP endorsement that will amend the
Contract as follows:
A) If for any reason a second year of ORP participation is not
begun, the total amount of the State of Texas' first-year
contribution will be returned to the appropriate institute of
higher education upon its request.
B) We will not pay any benefits if the participant surrenders
the Contract or otherwise, until the participant dies, accepts
retirement, terminates employment in all Texas institutions of
higher education or attains the age of 70 1/2. The value of the
Contract may, however, be transferred to other contracts or
carriers during the period of ORP participation. A participant
in the ORP is required to obtain a certificate of termination
from the participant's employer before the value of a Contract
can be withdrawn.
REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE
The amount of the withdrawal charge on the Contracts may be reduced or
eliminated when sales of the Contracts are made to individuals or to a
group of individuals in a manner that results in savings of sales
expenses. We will determine whether we will reduce withdrawal charges
after examining all the relevant factors such as:
(1) The size and type of group to which sales are to be made.
Generally, the sales expenses for a larger group
are less than for a smaller group because of the ability to
implement large numbers of Contracts with fewer sales contacts.
(2) The total amount of premium payments to be received.
Per Contract sales expenses are likely to be less
on larger premium payments than on smaller ones.
(3) Any prior or existing relationship with the Company.
Per Contract sales expenses are likely to be less
when there is a prior existing relationship because of the
likelihood of implementing the Contract with fewer sales
contacts.
The withdrawal charge may be eliminated when the Contracts are issued
to an officer, director or employee of the Company or any of its
affiliates. In no event will reductions or elimination of the
withdrawal charge be permitted where reductions or elimination will be
unfairly discriminatory to any person.
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TRANSFERS AMONG YOUR INVESTMENTS
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Prior to the annuity start date and after the free look period, you
may transfer your contract value among the subaccounts in which you
are invested at the end of the free look period until the annuity
start date. If more than 12 transfers are made in any contract year,
we will charge a transfer fee equal to the lesser of 2% of
the Contract value transferred or $25 for each transfer after the
twelfth transfer in a contract year. We also reserve the right to
limit the number of transfers you may make and may otherwise modify or
terminate transfer privileges if required by our business judgement or
in accordance with applicable law. The transfer fee will be deducted
from the amount which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service Center.
Any transfer fee will be deducted from the amount which is
transferred.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
DOLLAR COST AVERAGING
You may elect to participate in our dollar cost averaging program
if you have at least $500 of contract value in any subaccount. That
subaccount will serve as the source account from which we will, on a
monthly basis, automatically transfer a set dollar amount of money to
other subaccount(s) you select.
which is designed to lessen the impact of market fluctuation on your
investment. Since we transfer the same dollar amount to other
subaccounts each month, more units of a subaccount are purchased if
the value of its unit is low and less units are purchased if the value
of its unit is high. Therefore, a lower than average value per unit
may be achieved over the long term. However, we cannot guarantee
this. When you elect the dollar cost averaging program, you are
continuously investing in securities regardless of fluctuating price
levels. You should consider your tolerance for investing through
periods of fluctuating price levels.
You elect the dollar amount you want transferred under this program.
Each monthly transfer must be at least $100. You must
participate in any dollar cost averaging program for at least
five (5) months.
All dollar cost averaging transfers will be made on the 15th of each
month or another monthly date mutually agreed upon (or the next
business day if the 15th of the month is not a business day). Such
transfers currently are not taken into account in determining any
transfer fees. We reserve the right to treat dollar cost averaging
transfers as standard transfers when determining the number of
transfers in a year and imposing any applicable transfer fees. If
you, as an owner, participate in the dollar cost averaging program you
may not make automatic withdrawals of your contract value or
participate in the automatic rebalancing program.
If you do not specify the subaccounts to which the dollar amount of
the source account is to be transferred, we will transfer the money to
the subaccounts in which you are invested on a proportional basis.
If, on any transfer date, your contract value in a source account is
equal or less than the amount you have elected to have transferred,
the entire amount will be transferred and the program will end. You
may terminate the dollar cost averaging program at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next transfer date.
We may in the future offer additional subaccounts or withdraw any
subaccount to or from the dollar cost averaging program, or otherwise
modify, suspend or terminate this program. Of course, such change
will not affect any dollar cost averaging programs in operation at the
time.
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AUTOMATIC REBALANCING
If you have at least $25,000 of contract value invested in the
subaccounts of Account A, you may elect to have your investments in
the subaccounts automatically rebalanced. We will transfer funds
under your Contract on a quarterly, semi-annual, or annual calendar
basis among the subaccounts to maintain the investment blend of your
selected subaccounts. The minimum size of any allocation must be in
full percentage points. Rebalancing does not affect any amounts that
you have allocated. The program may be used in conjunction with the
systematic withdrawal option only if withdrawals are taken pro rata.
Automatic rebalancing is not available if you participate in dollar
cost averaging. Automatic rebalancing will not take place during the
free look period. All automatic rebalancing transfers will be made on
the 15th of the month that rebalancing is requested or another monthly
date mutually agreed upon (or the next valuation date, if the 15th of
the month is not a business day).
To participate in automatic rebalancing, send satisfactory notice to
our Customer Service Center. We will begin the program on the last
business day of the period in which we receive the notice. You may
cancel the program at any time. The program will automatically
terminate if you choose to reallocate your contract value among the
subaccounts or if you make an additional premium payment or partial
withdrawal on other than a pro rata basis. Additional premium
payments and partial withdrawals effected on a pro rata basis will not
cause the automatic rebalancing program to terminate.
If you, as the Contract owner, are participating in automatic
rebalancing, such transfers currently are not taken into account in
determining any transfer fee. We reserve the right to treat automatic
rebalancing transfers as standard transfers when determining the
number of transfers in a year and imposing any applicable transfer
fees.
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DEATH BENEFIT
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DEATH BENEFIT DURING THE ACCUMULATION PERIOD
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are also the contract owner, your
beneficiary will receive a death benefit unless the beneficiary is
your surviving spouse and elects to continue the Contract. The death
benefit value is calculated at the close of the business day on which
we receive proof of death at our Customer Service Center and the
beneficiary's election regarding payment. If the
beneficiary elects not to take the death benefit at the time of death,
the death benefit in the future may be affected. If the deceased
annuitant was not an owner, the proceeds may be received in a single sum
or applied to any of the annuity options within one year of death.
If the deceased annuitant was an owner, then proceeds must be distributed
in accordance with the Death of Owner provisions below. The proceeds
may be received in a single sum or applied to any of the annuity options
within one year of death. If we do not receive a request to apply the
death benefit proceeds to an annuity option, we will make a single sum
distribution. We will generally pay death single lump sum payments
benefit proceeds within 7 days after our Customer Service Center has
received sufficient information to make the payment.
DEATH PROCEEDS
If the annuitant is less than AGE 67 at the time of purchase, the
death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals;
(3) the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to
attained age 76.
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If the annuitant is BETWEEN THE AGES OF 67 AND 75 at the time of
purchase, the death benefit is the greatest of:
(1) the contract value;
(2) the total premium payments made under the Contract after
subtracting any withdrawals;
(3) the contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the death
benefit is the contract value.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
Please refer to the Contract for more details.
The beneficiary may choose an annuity payment option only during the
60-day period beginning with the date we receive acceptable due proof
of death.
The beneficiary may elect to have a single lump payment or choose one
of the annuity options.
The entire death proceeds must be paid within five (5) years of the
date of death unless:
(1) the beneficiary elects to have the death proceeds:
(a) payable under a payment plan over the life of the
beneficiary or over a period not extending beyond the life
expectancy of the beneficiary; and
(b) payable beginning within one year of the date of death; or
(2) if the beneficiary is the deceased owner's spouse, the
beneficiary may elect to become the owner of the Contract and
the Contract will continue in effect.
DEATH OF THE ANNUITANT
(1) If the annuitant dies prior to the annuity start date, we will
pay the death proceeds as provided above.
(2) If the annuitant dies after the annuity start date but before
all of the proceeds payable under the Contract have been
distributed, the Company will pay the remaining proceeds to the
beneficiary(ies) according to the terms of the supplementary
contract.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplement agreement
in effect.
DEATH OF OWNER
(1) If any owner of the Contract dies before the annuity start
date, the following applies:
(a) If the new owner is the deceased owner's spouse, the
Contract will continue and, if the deceased owner was also
the annuitant, the deceased owner's spouse will also be the
annuitant.
(b) If the new owner is someone other than the deceased owner's
spouse, the entire interest in the Contract must be
distributed to the new owner:
(i) within 5 years of the deceased owner's death
or
(ii) over the life of the new owner or over a period not
extending beyond the life expectancy of the new owner, as
long as payments begin within one year of the deceased
owner's death.
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If the deceased owner was the annuitant, the new owner will be the
joint owner, if any, or if there is no joint owner, the beneficiary.
If the deceased owner was not the annuitant, the new owner will be the
joint owner, if any, or if there is no joint owner, the contingent
owner named under the Contract. If there is no surviving joint or
contingent owner, the new owner will be the deceased owner's estate.
If the new owner under (b) above dies after the deceased owner but
before the entire interest has been distributed, any remaining
distributions will be to the new owner's estate.
(2) If the deceased owner was also the annuitant, the death of
owner provision shall apply in lieu of any provision providing
payment under the Contract when the annuitant dies before the
annuity start date.
(3) If any owner dies on or after the annuity start date, but
before all proceeds payable under this Contract have been
distributed, the Company will continue payments to the
annuitant (or, if the deceased owner was the annuitant, to the
beneficiary) under the payment method in effect at the time of
the deceased owner's death.
(4) For purposes of this section, if any owner of this Contract is
not an individual, the death or change of any annuitant shall
be treated as the death of an owner.
TRUST BENEFICIARY
If a trust is named as a beneficiary but we lack proof of the
existence of the trust at the time proceeds are to be paid to the
beneficiary, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests (or to the
annuitant's estate or the annuitant's legal successors, if there are
no other beneficiaries) unless proof of the existence of such trust is
provided within six months of the annuitant's death.
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CHARGES AND FEES
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We deduct the charges described below to cover our cost and expenses,
services provided and risks assumed under the Contracts. We incur
certain costs and expenses for distributing and administrating the
Contracts, for paying the benefits payable under the Contracts and for
bearing various risks associated with the Contracts. The amount of a
charge will not always correspond to the actual costs associated. For
example, the surrender charge collected may not fully cover all of the
distribution expenses incurred by us with the service or benefits
provided. In the event there are any profits from fees and charges
deducted under the Contract, we may use such profits to finance the
distribution of contracts.
SURRENDER CHARGES DEDUCTED FROM THE CONTRACT VALUE
For purposes of determining any applicable surrender charges under
the Contract, Contract value is removed in the following order:
1) earnings
(Contract value less premium payments not withdrawn); 2) premium
payments in the Contract for more than eight years (these premium
payments are liquidated on a first in, first out basis); 3) additional
free amount (which is equal to 10% of the premium payments in the
Contract for less than eight years, fixed at the time of the first
withdrawal in the Contract year, plus 10% of the premium payments made
after the first withdrawal in the Contract year but before the next
Contract anniversary, less any withdrawals in the same Contract year
of premium payments less than eight years old); and 4) premium
payments in the Contract for less than eight years (these premium
payments are removed on a first in, first out basis).
SURRENDER CHARGE. We will deduct a contingent deferred sales
charge (a "surrender charge") if you surrender your Contract or if you
take a withdrawal in excess of the Free Withdrawal Amount during the
8-year period from the date we receive and accept a premium payment.
The surrender charge is based on a percentage of each premium payment.
This charge is intended to cover sales expenses that we have
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incurred.
We may in the future reduce or waive the surrender charge in certain
situations and will never charge more than the maximum surrender
charges. The percentage of premium payments deducted at the time of
surrender or excess withdrawal depends on the number of complete years
that have elapsed since that premium payment was made. We determine
the surrender charge as a percentage of each premium payment as
follows:
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 |7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
SURRENDER CHARGE 8% | 7% | 6% | 5% | 4% | 3% |2% |1% | 0%
FREE WITHDRAWAL AMOUNT. At any time, you may make a withdrawal
without the imposition of a surrender charge, of an amount equal to
the sum of:
o earnings (contract value less unliquidated purchase payments);
o premium payments in the contract for more than eight years, and
o an amount which is equal to 10% of the premium payments in the
contract for less than eight years, fixed at the time of the
first withdrawal in the contract year, plus 10% of the premium
payment made after the first withdrawal in the contract year
(but before the next contract anniversary, less any withdrawals
in the same contract year of premium payments less than eight
years old).
SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a
surrender charge for excess withdrawals. We consider a withdrawal to
be an "excess withdrawal" when the amount you withdraw in any contract
year exceeds the free withdrawal amount. Where you are receiving
systematic withdrawals, any combination of regular withdrawals taken
and any systematic withdrawals expected to be received in a contract
year will be included in determining the amount of the excess
withdrawal. Such a withdrawal will be considered a partial surrender
of the contract and we will impose a surrender charge and any
associated premium tax.
PREMIUM TAXES. We may make a charge for state and local premium
taxes depending on the contract owner's state of residence. The tax
can range from 0% to 3.5% of the premium. We have the right to change
this amount to conform with changes in the law or if the contract
owner changes state of residence.
We deduct the premium tax from your contract value on the annuity
start date. However, some jurisdictions impose a premium tax at the
time that initial and additional premiums are paid, regardless of when
the annuity payments begin. In those states we may defer collection
of the premium taxes from your contract value and deduct it on
surrender of the contract, on excess withdrawals or on the annuity
start date.
ADMINISTRATIVE CHARGE. We deduct an annual administrative charge
on each contract anniversary, or if you surrender your Contract prior
to a Contract anniversary, at the time we determine the cash surrender
value payable to you. The amount deducted is $30 per Contract. We
deduct the annual administrative charge proportionately from all
subacounts in which you are invested
TRANSFER CHARGE. You may make 12 free transfers each contract year.
We will assess a transfer equal to the lesser of 2% of the contract value
transferred or an amount not greater than $25 for each transfer after the
twelfth transfer in a contract year. If such a charge is assessed, we
would deduct the charge as noted in "Charges Deducted from the Contract
Value" above. The charge will not apply to any transfers due to the election
of dollar cost averaging, automatic rebalancing and transfers we make to
and from any subaccount specially designated by the Company for such
purpose. However, we reserve the right to treat multiple transfers in
a single day, auto rebalancing and dollar cost averaging as standard
transfers when determining annual transfers and imposing the transfer
charge.
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CHARGES DEDUCTED FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE. We deducts on each
business day a mortality and expense risk charge which is equal, on an
annual basis, to 1.25% of the average daily net asset value of the
Separate Account. The charge is deducted on each business day at the
rate of .003446% for each day since the previous business day.
If the mortality and expense risk charge is insufficient to cover
the actual costs, the loss will be borne by the Company. Conversely,
if the amount deducted proves more than sufficient, the excess will be
a profit to the Company.
The mortality and expense risk charge is guaranteed by the Company
and cannot be increased.
ASSET-BASED ADMINISTRATIVE CHARGE. We will deduct a daily charge
from the assets in each subaccount, to compensate us for a portion of
the administrative expenses under the Contract. The daily charge is
at a rate of .000411% (equivalent to an annual rate of 0.15%) on the
assets in each subaccount.
TRUST EXPENSES
There are fees and charges deducted from each investment portfolio of
the Trusts. Please read the respective Trust prospectus for details.
[Shaded Section Header]
- - ----------------------------------------------------------------------
THE ANNUITY OPTIONS
- - ----------------------------------------------------------------------
SELECTING THE ANNUITY START DATE
You, as the owner, select an annuity start date at the date of
purchase and may elect a new annuity start date at any time by making
a written request to the Company at its Customer Service Center at
least seven days prior to the annuity start date. The annuity start
date must be at least 1 year from the contract date but
before the month immediately following the annuitant's 90th
birthday, or 10 years from the contract date, if later. If, on the
annuity start date, a surrender charge remains, the elected annuity
option must include a period certain of at least 5 years.
If you do not select an annuity start date, it will automatically
begin in the month following the annuitant's 90th birthday, or 10
years from the contract date, if later.
SELECTING A PAYMENT PLAN
On the annuity start date, we will begin making payments to the contract
owner under a payment plan. We will make these payments under the
payment plan you choose. The amount of the payments will be determined
by applying the maturity proceeds to the payment plan. pay the maturity
proceeds of the Contract to the annuitant, if living, If payment plan A,
Option 1; plan B; or plan C are elected, the maturity
proceeds will be the Contract value less any applicable
taxes not previously deducted. If the maturity proceeds are
paid in cash or by any other method not listed above, the
maturity proceeds equal the Contract value less:
(1) any applicable taxes not previously deducted; less
(2) the withdrawal charge, if any; less
(3) the annual contract administrative charge, if any.
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You must elect a payment plan in writing at least seven
(7) days before the annuity start date. If no election is made, an
automatic option of monthly income for a minimum of 120 months and as
long thereafter as the annuitant lives will be applied.
The owner chooses a plan by sending a written request to the Customer
Service Center. The Company will send the owner the proper forms to
complete. The request, when recorded at the Company's Customer
Service Center, will be in effect from the date it was signed, subject
to any payments or actions taken by the Company before the recording.
If, for any reason, the person named to receive
payments (the payee) is changed, the change will go into effect when
the request is recorded at the Company's Customer Service Center,
subject to any payments or actions taken by the Company before the
recording.
FIXED PAYMENT PLANS
After the first Contract year, the maturity proceeds may be applied
under one or more of the payment plans described below. Payment plans not
specified below may be available only if they are approved both
by the Company and the owner.
No withdrawal charge is deducted if Plan A-Option 1; Plan B or Plan C
is elected.
A plan is available only if the periodic payment is $100 or more. If
the payee is other than a natural person (such as a corporation), a
plan will be available only with our consent.
A supplementary contract will be issued in exchange for the Contract
when payment is made under a payment plan. The effective date of a
payment plan shall be a date upon which the we and the owner mutually
agree.
The minimum interest rate for plans A and B is 3.0% a year, compounded
yearly. The minimum rates for Plan C were based on the 1983a Annuity
Table at 3.0% interest, compounded yearly. The Company may pay a
higher rate at its discretion.
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[Table with Shaded Heading]
Annuity Payment Plans
|------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The contract value less any applicable taxes |
| not previously deducted may be left on |
| deposit with us for five (5) years. Fixed |
| payments will be made monthly, quarterly, |
| semi-annually, or annually. We do not allow |
| a monthly payment if the contract value |
| applied under this option is less than |
| $100,000. The proceeds may not be withdrawn |
| until the end of the five (5) year period. |
| |
| Option 2 The cash surrender value may be left on |
| deposit with the Company for a specified |
| period. Interest will be paid annually. All |
| or part of the proceeds may be withdrawn at |
| any time. |
|------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The contract value less any applicable taxes |
| not previously deducted will be paid until |
| the proceeds, plus interest, are paid in |
| full. Payments may be paid annually or |
| monthly. The payment period cannot be more |
| than thirty (30) years nor less than five (5) |
| years. The Contract provides for a table of |
| minimum annual payments. They are based on |
| the age of the annuitant or the beneficiary. |
|------------------------------------------------------------------------|
| PLAN C. LIFE INCOME |
| The contract value less any applicable taxes |
| not previously deducted will be paid in |
| monthly or annual payments for as long as the |
| annuitant or beneficiary, whichever is |
| appropriate, lives. The Company has the |
| right to require proof satisfactory to it of |
| the age and sex of such person and proof of |
| continuing survival of such person. A |
| minimum number of payments may be guaranteed, |
| if desired. The Contract provides for a |
| table of minimum annual payments. They are |
| based on the age of the annuitant or the |
| beneficiary. |
|------------------------------------------------------------------------|
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OTHER CONTRACT PROVISIONS
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REPORTS TO CONTRACT OWNERS
We will send you a quarterly report within 31 days after the end of
each calendar quarter. The report will show the contract value, cash
surrender value, and the death benefit as of the end of the calendar
quarter. The report will also show the allocation of your contract
value and reflects the amounts deducted from or added to the contract
value since the last report. We will also send you copies of any
shareholder reports of the investment portfolios in which Account A
invests, as well as any other reports, notices or documents we are
required by law to furnish to you.
SUSPENSION OF PAYMENTS OR TRANSFERS
The Company reserves the right to suspend or postpone payments (in
Illinois, for a period not exceeding six months) for withdrawals or
transfers for any period when:
(1) the New York Stock Exchange is closed (other than customary
weekend and holiday closings);
(2) trading on the New York Stock Exchange is restricted;
(3) an emergency exists as a result of which disposal of securities
held in the Separate Account is not reasonably practicable or
it is not reasonably practicable to determine the value of the
Separate Account's net assets;
(4) when the Company's Customer Service Center is closed; or
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(5) during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of owners;
provided that applicable rules and regulations of the
Securities and Exchange Commission will govern as to whether
the conditions described in (2) and (3) exist.
IN CASE OF ERRORS IN YOUR APPLICATION
If an age or sex given in the application or enrollment form is
misstated, the amounts payable or benefits provided by the Contract
shall be those that the premium payment would have bought at the
correct age or sex.
ASSIGNING THE CONTRACT AS COLLATERAL
You may assign a non-qualified Contract as collateral security for a
loan but understand that your rights and any beneficiary's rights may
be subject to the terms of the assignment. An assignment may have
federal tax consequences. You must give us satisfactory written
notice at our Customer Service Center in order to make or release an
assignment. We are not responsible for the validity of any
assignment.
CONTRACT CHANGES -- APPLICABLE TAX LAW
We have the right to make changes in the Contract to continue to
qualify the Contract as an annuity. You will be given advance notice
of such changes.
FREE LOOK
In most cases, you may cancel your Contract within your 10-day free
look period. We deem the free look period to expire 15 days after we
mail the Contract to you. Some states may require a longer free look
period. To cancel, you need to send your Contract to our Customer
Service Center or to the agent from whom you purchased it. We will
refund the contract value plus any charges deducted. Because of the
market risks associated with investing in the portfolios, the contract
value returned may be greater or less than the premium payment you paid.
Some states require us to return to you the amount of the paid premium
(rather than the contract value) in which case you will not be subject
to investment risk during the free look period. In these states, your
premiums designated for investment in the subaccounts will be
allocated during the free look period to a subaccount specially
designated by the Company for this purpose (currently, the Liquid
Asset subaccount). We may, in our discretion, require that premiums
designated for investment in the subaccounts from all other states be
allocated to the specially designated subaccount during the free look
period. Your Contract is void as of the day we receive your Contract
and your request. We determine your contract value at the close of
business on the day we receive your written refund request. If you
keep your Contract after the free look period, we will put your money
in the subaccount(s) chosen by you, based on the accumulation unit
value next computed for each subaccount.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce any
surrender, administration, and mortality and expense risk charges. We
may also change the minimum initial and additional premium
requirements, or offer an alternative or reduced death benefit. See
"Reduction or Elimination of the Withdrawal Charge" for more details.
SELLING THE CONTRACT
Directed Services, Inc. ("DSI") is distributor of the Contract issued
through Account A. The principal address of DSI is 1745 Dunwoody Drive,
West Chester, PA 19380. DSI enters into sales agreements with
broker-dealers to sell the Contracts through registered representatives
who are licensed to sell securities and variable insurance products.
These broker-dealers are registered with the SEC and are members of
the National Association of Securities Dealers, Inc. The selling
broker-dealer whose registered representative sold the contract
receives a maximum of 7.75% commission. Certain sales agreements may
provide for a combination of a certain percentage of commission at
the time of sale and an annual trail commission (which when combined
could exceed 7.75% of total premium payments).
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OTHER INFORMATION
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VOTING RIGHTS
We will vote the shares of a Trust owned by Account A according to
your instructions. However, if the Investment Company Act of 1940 or
any related regulations should change, or if interpretations of it or
related regulations should change, and we decide that we are permitted
to vote the shares of a Trust in our own right, we may decide to do so.
We determine the number of shares that you have in a subaccount by
dividing the Contract's contract value in that subaccount by the net
asset value of one share of the portfolio in which a subaccount
invests. We count fractional votes. We will determine the number of
shares you can instruct us to vote 180 days or less before a Trust's
meeting. We will ask you for voting instructions by mail at least 10
days before the meeting. If we do not receive your instructions in
time, we will vote the shares in the same proportion as the
instructions received from all Contracts in that subaccount. We will
also vote shares we hold in Account A which are not attributable to
contract owners in the same proportion.
YEAR 2000 PROBLEM
Like other business organizations and individuals around the world,
Equitable Life and Account A could be adversely affected if the
computer systems doing the accounts processing or on which Equitable
Life and/or Account A relies do not properly process and calculate
date-related information related to the end of the year 1999. This is
commonly known as the Year 2000 (or Y2K) Problem. Equitable Life is
taking steps that it believes are reasonably designed to address the
Year 2000 Problem with respect to the computer systems that it uses
and to obtain satisfactory assurances that comparable steps are being
taken by its and Account A's major service providers. At this time,
however, we cannot guarantee that these steps will be sufficient to
avoid any adverse impact on Equitable Life and Account A.
STATE REGULATION
We are regulated by the Insurance Department of the State of Iowa. We
are also subject to the insurance laws and regulations of all
jurisdictions where we do business. The variable Contract offered by
this prospectus has been approved where required by those
jurisdictions. We are required to submit annual statements of our
operations, including financial statements, to the Insurance
Departments of the various jurisdictions in which we do business to
determine solvency and compliance with state insurance laws and
regulations.
LEGAL PROCEEDINGS
We, like other insurance companies, may be involved in lawsuits,
including class action lawsuits. In some class action and other
lawsuits involving insurers, substantial damages have been sought
and/or material settlement payments have been made. We believe that
currently there are no pending or threatened lawsuits that are
reasonably likely to have a material adverse impact on the Company or
Account A.
LEGAL MATTERS
The legal validity of the Contracts was passed on by James Mumford,
Esquire, Executive Vice President, General Counsel and Secretary of
Equitable Life Insurance Company of Iowa. Sutherland Asbill & Brennan
LLP of Washington, D.C. has provided advice on certain matters
relating to federal securities laws.
EXPERTS
The audited financial statements of Equitable Life Insurance Company
of Iowa and Account A appearing or incorporated by reference in the
Statement of Additional Information and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth
in their reports thereon appearing or incorporated by reference in the
Statement of Additional Information and in the Registration Statement
and are included or incorporated by reference in reliance upon such
reports given upon the authority of such firm as experts in accounting
and auditing.
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FEDERAL TAX CONSIDERATIONS
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The following summary provides a general description of the federal
income tax considerations associated with this Contract and does not
purport to be complete or to cover all tax situations. This
discussion is not intended as tax advice. You should consult your
counsel or other competent tax advisers for more complete information.
This discussion is based upon our understanding of the present federal
income tax laws. We do not make any representations as to the
likelihood of continuation of the present federal income tax laws or
as to how they may be interpreted by the IRS.
TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED
The Contract may be purchased on a non-tax-qualified basis or
purchased on a tax-qualified basis. Qualified Contracts are designed
for use by individuals whom premium payments are comprised solely of
proceeds from and/or contributions under retirement plans that are
intended to qualify as plans entitled to special income tax treatment
under Sections 401(a), 403(b), 408, or 408A of the Code. The ultimate
effect of federal income taxes on the amounts held under a Contract,
or annuity payments, depends on the type of retirement plan, on the
tax and employment status of the individual concerned, and on our tax
status. In addition, certain requirements must be satisfied in
purchasing a qualified Contract with proceeds from a tax-qualified
plan and receiving distributions from a qualified Contract in order to
continue receiving favorable tax treatment. Some retirement plans are
subject to distribution and other requirements that are not
incorporated into our Contract administration procedures. Contract
owners, participants and beneficiaries are responsible for determining
that contributions, distributions and other transactions with respect
to the Contract comply with applicable law. Therefore, you should
seek competent legal and tax advice regarding the suitability of a
Contract for your particular situation. The following discussion
assumes that qualified Contracts are purchased with proceeds from
and/or contributions under retirement plans that qualify for the
intended special federal income tax treatment.
TAX STATUS OF THE CONTRACTS
DIVERSIFICATION REQUIREMENTS. The Code requires that the
investments of a variable account be "adequately diversified" in order
for the Contracts to be treated as annuity contracts for federal
income tax purposes. It is intended that Account A, through the
subaccounts, will satisfy these diversification requirements.
In certain circumstances, owners of variable annuity contracts have
been considered for federal income tax purposes to be the owners of
the assets of the separate account supporting their contracts due to
their ability to exercise investment control over those assets. When
this is the case, the contract owners have been currently taxed on
income and gains attributable to the separate account assets. There
is little guidance in this area, and some features of the Contracts,
such as the flexibility of a contract owner to allocate premium
payments and transfer contract values, have not been explicitly
addressed in published rulings. While we believe that the Contracts
do not give contract owners investment control over Account A assets,
we reserve the right to modify the Contracts as necessary to prevent a
contract owner from being treated as the owner of the Account B assets
supporting the Contract.
REQUIRED DISTRIBUTIONS. In order to be treated as an annuity
contract for federal income tax purposes, the Code requires any non-
qualified Contract to contain certain provisions specifying how your
interest in the Contract will be distributed in the event of your
death. The non-qualified Contracts contain provisions that are
intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. We
intend to review such provisions and modify them if necessary to
assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.
Other rules may apply to Qualified Contracts.
The following discussion assumes that the Contracts will qualify as
annuity contracts for federal income tax purposes.
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TAX TREATMENT OF ANNUITIES
IN GENERAL. We believe that if you are a natural person you will
generally not be taxed on increases in the value of a Contract until a
distribution occurs or until annuity payments begin. (For these
purposes, the agreement to assign or pledge any portion of the
contract value, and, in the case of a qualified Contract, any portion
of an interest in the qualified plan, generally will be treated as a
distribution.)
TAXATION OF NON-QUALIFIED CONTRACTS
NON-NATURAL PERSON. The owner of any annuity contract who is not a
natural person generally must include in income any increase in the
excess of the contract value over the "investment in the contract"
(generally, the premiums or other consideration paid for the contract)
during the taxable year. There are some exceptions to this rule and a
prospective contract owner that is not a natural person may wish to
discuss these with a tax adviser. The following discussion generally
applies to Contracts owned by natural persons.
WITHDRAWALS. When a withdrawal from a non-qualified Contract
occurs, the amount received will be treated as ordinary income subject
to tax up to an amount equal to the excess (if any) of the contract
value (unreduced by the amount of any surrender charge) immediately
before the distribution over the contract owner's investment in the
Contract at that time.
In the case of a surrender under a non-qualified Contract, the amount
received generally will be taxable only to the extent it exceeds the
contract owner's investment in the Contract.
PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution
from a non-qualified Contract, there may be imposed a federal tax
penalty equal to 10% of the amount treated as income. In general,
however, there is no penalty on distributions:
O made on or after the taxpayer reaches age 59 1/2;
O made on or after the death of a contract owner;
O attributable to the taxpayer's becoming disabled; or
O made as part of a series of substantially equal periodic
payments for the life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and
special rules may be applicable in connection with the exceptions
enumerated above. A tax adviser should be consulted with regard to
exceptions from the penalty tax.
ANNUITY PAYMENTS. Although tax consequences may vary depending on
the payment option elected under an annuity contract, a portion of
each annuity payment is generally not taxed and the remainder is taxed
as ordinary income. The non-taxable portion of an annuity payment is
generally determined in a manner that is designed to allow you to
recover your investment in the Contract ratably on a tax-free basis
over the expected stream of annuity payments, as determined when
annuity payments start. Once your investment in the Contract has been
fully recovered, however, the full amount of each annuity payment is
subject to tax as ordinary income.
TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed
from a Contract because of your death or the death of the annuitant.
Generally, such amounts are includible in the income of recipient as
follows: (i) if distributed in a lump sum, they are taxed in the same
manner as a surrender of the Contract, or (ii) if distributed under a
payment option, they are taxed in the same way as annuity payments.
TRANSFERS, ASSIGNMENTS, OR EXCHANGES, AND ANNUITY DATES OF A
CONTRACT. A transfer or assignment of ownership of a Contract, the
designation of an annuitant, the selection of certain dates for
commencement of the annuity phase, or the exchange of a Contract may
result in certain tax consequences to you that are not discussed
herein. A contract owner contemplating any such transfer, assignment
or exchange, should consult a tax advisor as to the tax consequences.
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WITHHOLDING. Annuity distributions are generally subject to
withholding for the recipient's federal income tax liability.
Recipients can generally elect, however, not to have tax withheld from
distributions.
MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts
that are issued by us (or our affiliates) to the same contract owner
during any calendar year are treated as one annuity contract for
purposes of determining the amount includible in such contract owner's
income when a taxable distribution occurs.
TAXATION OF QUALIFIED CONTRACTS
The Contracts are designed for use with several types of qualified
plans. The tax rules applicable to participants in these qualified
plans vary according to the type of plan and the terms and
contributions of the plan itself. Special favorable tax treatment may
be available for certain types of contributions and distributions.
Adverse tax consequences may result from: contributions in excess of
specified limits; distributions before age 59 1/2 (subject to certain
exceptions); distributions that do not conform to specified
commencement and minimum distribution rules; and in other specified
circumstances. Therefore, no attempt is made to provide more than
general information about the use of the Contracts with the various
types of qualified retirement plans. Contract owners, annuitants, and
beneficiaries are cautioned that the rights of any person to any
benefits under these qualified retirement plans may be subject to the
terms and conditions of the plans themselves, regardless of the terms
and conditions of the Contract, but we shall not be bound by the terms
and conditions of such plans to the extent such terms contradict the
Contract, unless the Company consents.
DISTRIBUTIONS. Annuity payments are generally taxed in the same
manner as under a non-qualified Contract. When a withdrawal from a
qualified Contract occurs, a pro rata portion of the amount received
is taxable, generally based on the ratio of the contract owner's
investment in the Contract (generally, the premiums or other
consideration paid for the Contract) to the participant's total
accrued benefit balance under the retirement plan. For Qualified
Contracts, the investment in the Contract can be zero. For Roth IRAs,
distributions are generally not taxed, except as described below.
For qualified plans under Section 401(a) and 403(b), the Code requires
that distributions generally must commence no later than the later of
April 1 of the calendar year following the calendar year in which the
contract owner (or plan participant) (i) reaches age 70 1/2 or (ii)
retires, and must be made in a specified form or manner. If the plan
participant is a "5 percent owner" (as defined in the Code),
distributions generally must begin no later than April 1 of the
calendar year following the calendar year in which the contract owner
(or plan participant) reaches age 70 1/2. For IRAs described in
Section 408, distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) reaches age 70 1/2.
Roth IRAs under Section 408A do not require distributions at any time
before the contract owner's death.
WITHHOLDING. Distributions from certain qualified plans generally
are subject to withholding for the contract owner's federal income tax
liability. The withholding rates vary according to the type of
distribution and the contract owner's tax status. The contract owner
may be provided the opportunity to elect not to have tax withheld from
distributions. "Eligible rollover distributions" from section 401(a)
plans and section 403(b) tax-sheltered annuities are subject to a
mandatory federal income tax withholding of 20%. An eligible rollover
distribution is the taxable portion of any distribution from such a
plan, except certain distributions that are required by the Code or
distributions in a specified annuity form. The 20% withholding does
not apply, however, if the contract owner chooses a "direct rollover"
from the plan to another tax-qualified plan or IRA.
Brief descriptions of the various types of qualified retirement plans
in connection with a Contract follow. We will endorse the Contract as
necessary to conform it to the requirements of such plan.
REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH
We will not allow any payment of benefits provided under the Contract
which do not satisfy the requirements of Section 72(s) of the Code.
29
<PAGE>
<PAGE>
If an owner of a Non-Qualified Contract dies before the annuity start
date, the death benefit payable to the beneficiary will be distributed
as follows: (a) the death benefit must be completely distributed
within 5 years of the contract owner's date of death; or (b) the
beneficiary may elect, within the 1-year period after the contract
owner's date of death, to receive the death benefit in the form of an
annuity from us, provided that (i) such annuity is distributed in
substantially equal installments over the life of such beneficiary or
over a period not extending beyond the life expectancy of such
beneficiary; and (ii) such distributions begin not later than 1 year
after the contract owner's date of death.
Notwithstanding (a) and (b) above, if the sole contract owner's
beneficiary is the deceased owner's surviving spouse, then such spouse
may elect, to continue the Contract under the same terms as before the
contract owner's death. Upon receipt of such election from the spouse
at our Customer Service Center: (1) all rights of the spouse as
contract owner's beneficiary under the Contract in effect prior to
such election will cease; (2) the spouse will become the owner of the
Contract and will also be treated as the contingent annuitant, if none
has been named and only if the deceased owner was the annuitant; and
(3) all rights and privileges granted by the Contract or allowed by
Golden American will belong to the spouse as contract owner of the
Contract. This election will be deemed to have been made by the
spouse if such spouse makes a premium payment to the Contract or fails
to make a timely election as described in this paragraph. If the
owner's beneficiary is a nonspouse, the distribution provisions
described in subparagraphs (a) and (b) above, will apply even if the
annuitant and/or contingent annuitant are alive at the time of the
contract owner's death.
If we do not receive an election from a nonspouse owner's beneficiary
within the 1-year period after the contract owner's date of death,
then we will pay the death benefit to the owner's beneficiary in a
cash payment within five years from date of death. We will determine
the death benefit as of the date we receive proof of death. We will
make payment of the proceeds on or before the end of the 5-year period
starting on the owner's date of death. Such cash payment will be in
full settlement of all our liability under the Contract.
If the annuitant dies after the annuity start date, we will continue
to distribute any benefit payable at least as rapidly as under the
annuity option then in effect.
If the contract owner dies after the annuity start date, we will
continue to distribute any benefit payable at least as rapidly as
under the annuity option then in effect. All of the contract owner's
rights granted under the Contract or allowed by us will pass to the
contract owner's beneficiary.
If the Contract has joint owners we will consider the date of death of
the first joint owner as the death of the contract owner and the
surviving joint owner will become the contract owner of the Contract.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits corporate employers to establish
various types of retirement plans for employees, and permits self-
employed individuals to establish these plans for themselves and their
employees. These retirement plans may permit the purchase of the
Contracts to accumulate retirement savings under the plans. Adverse
tax or other legal consequences to the plan, to the participant, or to
both may result if this Contract is assigned or transferred to any
individual as a means to provide benefit payments, unless the plan
complies with all legal requirements applicable to such benefits
before transfer of the Contract. Employers intending to use the
Contract with such plans should seek competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" or "IRA." These IRAs are subject to limits on the amount
that can be contributed, the deductible amount of the contribution,
the persons who may be eligible, and the time when distributions
commence. Also, distributions from certain other types of qualified
retirement plans may be "rolled over" or transferred on a tax-deferred
basis into an IRA. There are significant restrictions on rollover or
transfer contributions from Savings Incentive Match Plans (SIMPLE),
under which certain employers may provide contributions to IRAs on
behalf of their employees, subject to special restrictions. Employers
may establish Simplified Employee Pension (SEP) Plans to provide IRA
contributions on behalf of their employees. Sales of the Contract for
use with IRAs may be subject to special requirements of the IRS.
30
<PAGE>
<PAGE>
ROTH IRAS
Section 408A of the Code permits certain eligible individuals to
contribute to a Roth IRA. Contributions to a Roth IRA, which are
subject to certain limitations, are not deductible, and must be made
in cash or as a rollover or transfer from another Roth IRA or other
IRA. A rollover from or conversion of an IRA to a Roth IRA may be
subject to tax, and other special rules may apply. Distributions from
a Roth IRA generally are not taxed, except that, once aggregate
distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 1/2
(subject to certain exceptions) or (2) during the five taxable years
starting with the year in which the first contribution is made to the
Roth IRA.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their gross
income the premium payments made, within certain limits, on a Contract
that will provide an annuity for the employee's retirement. These
premium payments may be subject to FICA (social security) tax.
Distributions of (1) salary reduction contributions made in years
beginning after December 31, 1988; (2) earnings on those
contributions; and (3) earnings on amounts held as of the last year
beginning before January 1, 1989, are not allowed prior to age 59 1/2,
separation from service, death or disability. Salary reduction
contributions may also be distributed upon hardship, but would
generally be subject to penalties.
ENHANCED DEATH BENEFIT
The Contract includes an Enhanced Death Benefit that in some cases may
exceed the greater of the premium payments or the account value. The
Enhanced Death Benefit could be characterized as an incidental benefit,
the amount of which is limited in any Code section 401(a) pension or
profit-sharing plan or Code section 403(b) tax-sheltered annuity.
Because the Enhanced Death Benefit may exceed this limitation,
employers using the Contract in connection with such plans should
consult their tax adviser. Further, the Internal Revenue Service has
not reviewed the Contract for qualification as an IRA or Roth IRA, and
has not addressed in a ruling of general applicability whether a death
benefit provision such as the Enhanced Death Benefit provision in the
Contract comports with IRA qualification requirements.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the federal tax
consequences under the Contracts are not exhaustive, and special rules
are provided with respect to other tax situations not discussed in
this prospectus. Further, the federal income tax consequences
discussed herein reflect our understanding of current law, and the law
may change. Federal estate and state and local estate, inheritance
and other tax consequences of ownership or receipt of distributions
under a Contract depend on the individual circumstances of each
contract owner or recipient of the distribution. A competent tax
adviser should be consulted for further information.
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative change is uncertain, there is
always the possibility that the tax treatment of the Contracts could
change by legislation or other means. It is also possible that any
change could be retroactive (that is, effective before the date of the
change). A tax adviser should be consulted with respect to
legislative developments and their effect on the Contract.
31
<PAGE>
<PAGE>
[Shaded Section Header]
- ------------------------------------------------------------------------
STATEMENT OF ADDITIONAL INFORMATION
- ------------------------------------------------------------------------
TABLE OF CONTENTS
ITEM PAGE
Company 1
Experts 1
Legal Opinions 1
Distributor 1
Yield Calculations for the Liquid Asset Subaccounts 1
Performance Information 2
Annuity Provisions 5
Financial Statements 5
32
<PAGE>
<PAGE>
- ------------------------------------------------------------------------
PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE
STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER
THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER; THE
ADDRESS IS SHOWN ON THE PROSPECTUS COVER.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
FOR SEPARATE ACCOUNT A.
Please Print or Type:
__________________________________________________
NAME
__________________________________________________
SOCIAL SECURITY NUMBER
__________________________________________________
STREET ADDRESS
__________________________________________________
CITY, STATE, ZIP
EQUI-SELECT 5/99
33
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<PAGE>
This page intentionally left blank.
34
<PAGE>
<PAGE>
APPENDIX A
CONDENSED FINANCIAL INFORMATION
The following tables give (1) the accumulation unit value ("AUV"), (2)
the total number of accumulation units, and (3) the total accumulation
unit value, for each subaccount of Equitable of Iowa Separate Account
A available under the Contract for the indicated periods. The date on
which the subaccount became available to investors and the starting
accumulation unit value are indicated on the last row of each table.
LIQUID ASSET
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.33 2,338,381 $ 33,498 |
| 8/17/98 14.14 -- -- |
|-------------------------------------------------------------|
LIMITED MATURITY BOND
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.77 2,627,993 $ 44,068 |
| 8/17/98 16.41 -- -- |
|-------------------------------------------------------------|
GLOBAL FIXED INCOME
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $13.09 946,714 $ 12,391 |
| 1997 11.87 1,003,152 11,905 |
| 1996 11.96 705,870 8,440 |
| 1995 11.55 311,689 3,500 |
| 1994 10.06 5,098 51,288 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
A1
<PAGE>
<PAGE>
TOTAL RETURN
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.72 12,496,442 $221,408 |
| 1997 16.10 9,244,077 148,852 |
| 1996 13.51 4,354,338 58,835 |
| 1995 12.05 1,312,565 [ ] |
| 1994 9.81 33,106 325 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
EQUITY INCOME
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $21.94 43,654 $ 958 |
| 6/1/98 21.36 -- -- |
|-------------------------------------------------------------|
FULLY MANAGED
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $20.53 779,994 $ 16,015 |
| 1997 19.66 430,012 8,456 |
| 2/3/97 17.40 -- -- |
|-------------------------------------------------------------|
RISING DIVIDENDS
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.61 2,936,233 $ 66,477 |
| 1997 20.09 1,561,703 31,375 |
| 2/3/97 16.36 -- -- |
|-------------------------------------------------------------|
A2
<PAGE>
<PAGE>
GROWTH & INCOME
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.01 6,865,903 $ 116,791 |
| 1997 15.41 5,699,245 87,808 |
| 1996 12.49 2,228,888 27,830 |
| 4/1/96 10.00 -- -- |
|-------------------------------------------------------------|
GROWTH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.29 5,276,364 $ 85,977 |
| 1997 13.03 4,326,368 56,374 |
| 1996 11.42 1,238,349 14,136 |
| 4/1/96 10.00 -- -- |
|-------------------------------------------------------------|
VALUE EQUITY
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $18.31 13,489 $ 247 |
| 6/1/98 18.81 -- -- |
|-------------------------------------------------------------|
RESEARCH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.89 14,188,466 $324,775 |
| 1997 18.87 10,840,733 204,520 |
| 1996 15.93 4,845,240 77,175 |
| 1995 13.10 1,255,752 16,447 |
| 1994 9.72 69,177 672 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
A3
<PAGE>
<PAGE>
STRATEGIC EQUITY
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.23 12,125 $ 173 |
| 6/1/98 15.03 -- -- |
|-------------------------------------------------------------|
CAPITAL APPRECIATION
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $24.50 68,343 $ 1,674 |
| 6/1/98 23.72 -- -- |
|-------------------------------------------------------------|
MID-CAP GROWTH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.43 5,924,179 $132,179 |
| 1997 18.52 4,824,991 89,359 |
| 1996 15.70 2,602,724 40,863 |
| 1995 13.21 759,597 10,034 |
| 1994 10.35 63,781 660 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
SMALL CAP
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.37 1,310,457 $ 20,139 |
| 1997 12.88 885,024 11,401 |
| 2/3/97 11.98 -- -- |
|-------------------------------------------------------------|
A4
<PAGE>
<PAGE>
REAL ESTATE
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $21.74 11,546 $ 251 |
| 6/1/98 24.06 -- -- |
|-------------------------------------------------------------|
HARD ASSETS
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.28 23,848 $ 341 |
| 6/1/98 18.34 -- -- |
|-------------------------------------------------------------|
DEVELOPING WORLD
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 7.28 81,839 $ 576 |
| 6/1/98 10.00 -- -- |
|-------------------------------------------------------------|
WARBURG PINCUS INTERNATIONAL
EQUITY PORTFOLIO
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 10.29 4,170,018 $ 42,902 |
| 1997 9.90 3,908,832 38,713 |
| 1996 10.28 2,026,704 20,825 |
| 4/1/96 10.00 -- -- |
|-------------------------------------------------------------|
A5
<PAGE>
<PAGE>
PIMCO HIGH YIELD
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $10.08 200,928 $ 2,025 |
| 6/1/98 10.00 -- -- |
|-------------------------------------------------------------|
PIMCO STOCKSPLUS
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $11.11 573,722 $ 6,377 |
| 6/1/98 9.59 -- -- |
|-------------------------------------------------------------|
ALL-GROWTH
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $15.43 25,391 $ 392 |
| 6/1/98 14.50 -- -- |
|-------------------------------------------------------------|
GROWTH OPPORTUNITIES
[table with shaded headers]
|-------------------------------------------------------------|
| |
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $ 9.65 7,595 $ 73 |
| 6/1/98 10.00 -- -- |
|-------------------------------------------------------------|
A6
<PAGE>
<PAGE>
APPENDIX B
SURRENDER CHARGE FOR EXCESS WITHDRAWALS EXAMPLE
The following assumes you made an initial premium payment of $25,000 and
additional premium payments of $25,000 in each of the second and third
contract years, for total premium payments under the Contract of $75,000.
It also assumes a withdrawal at the beginning of the fifth contract year
of 30% of the contract year of 30% of the contract value of $90,000.
In this example, $22,500 (sum of $15,000 earnings and $75,000 * .10) is
the maximum free withdrawal amount that you may withdraw during the contract
year without a surrender charge. The total withdrawal would be $27,000
($90,000 * .30). Therefore, $4,500 ($27,000 - $22,500) is considered an
excess withdrawal of a part of the initial premium payment of $25,000 and
would be subject to a 4% surrender charge of $180 ($4,500 * .04).
B1
<PAGE>
<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
Equitable Life Insurance Company of Iowa is a stock company domiciled in Iowa
EQUI-SELECT 5/99
<PAGE>
<PAGE>
EXPLANATORY NOTE
PROFILE AND PROSPECTUS
OF PRIMELITE
<PAGE>
<PAGE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
[begin shaded block]
PROFILE OF
PRIMELITE
INDIVIDUAL FLEXIBLE PREMIUM DEFERRED
VARIABLE ANNUITY CONTRACT
MAY 1, 1999
[inset within shaded block]
This Profile is a summary of some of the more important points that
you should know and consider before purchasing the Contract. The
Contract is more fully described in the full prospectus which
accompanies this Profile. Please read the prospectus carefully.
[end within shaded block]
[end shaded block]
1. THE ANNUITY CONTRACT
The Contract offered in this prospectus is an individual flexible
premium deferred variable annuity contract between you and Equitable
Life Insurance Company of Iowa ("Equitable Life", "we", "us" or the
"Company"). The Contract provides a means for you to invest on a tax-
deferred basis in one or more of 13 mutual fund investment portfolios
through our Separate Account A listed under Item 4. Keep in mind
that you can lose or not make any money.
The Contract, like all deferred variable annuity contracts, has two
phases: the accumulation phase and the income phase. The
accumulation phase is the period between the contract date and the
date on which you start receiving the annuity payments under your
Contract. The amounts you accumulate during the accumulation phase
will determine the amount of annuity payments you will receive. The
income phase begins when you start receiving regular annuity payments
from your Contract on the annuity start date.
You determine (1) the amount and frequency of premium payments, (2)
the investments, (3) transfers between investments, (4) the type of
annuity to be paid after the accumulation phase, (5) the beneficiary
who will receive the death benefits, and (6) the amount and frequency
of withdrawals.
2.YOUR ANNUITY PAYMENTS (THE INCOME PHASE)
Annuity payments are the periodic payments you will begin receiving
on the annuity start date. You may choose one of the following
fixed annuity payment options:
<PAGE>
<PAGE>
[Table with Shaded Heading]
Annuity Options
|------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The contract value, less any applicable taxes |
| not previously deducted, may be left on dep- |
| osit with the Company for five (5) years. We |
| will make fixed payments monthly, quarterly, |
| semi-annually, or annually. We do not make |
| monthly payments if the contract value |
| applied to this option is less than $100,000. |
| You may not withdraw the proceeds until the |
| end of the five (5) year period. |
| Option 2 The contract surrender value may be left on |
| deposit with us for a specified period. |
| Interest will be paid annually. All or part |
| of the proceeds may be withdrawn at any |
| time. |
|------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The contract value,less any applicable taxes |
| not previously deducted,will be paid until |
| the proceeds, plus interest, are paid in |
| full. Payments may be paid annually or |
| monthly for a period of not more than thirty |
| (30) years nor less than five (5) years. The |
| Contract provides for a table of minimum |
| annual payments.They are based on the age of |
| the annuitant or the beneficiary. |
|------------------------------------------------------------------------|
| PLAN C. LIFE INCOME |
| The contract value less any applicable taxes |
| not previously deducted will be paid in |
| monthly or annual payments for as long as |
| the annuitant or beneficiary, whichever is |
| appropriate, lives. We have the right to |
| require proof satisfactory to it of the age |
| and sex of such person and proof of |
| continuing survival of such person. A |
| minimum number of payments may be |
| guaranteed, if desired. The Contract |
| provides for a table of minimum annual |
| payments. They are based on the age of the |
| annuitant or the beneficiary. |
|------------------------------------------------------------------------|
3.PURCHASE (BEGINNING OF THE ACCUMULATION PHASE)
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may
make the minimum payments of $100 per month if payroll deduction is
used; otherwise it is an aggregate of $2,000 per year. Prior approval
must be obtained from us for subsequent payments in excess of
$500,000 or for total payments in excess of $1,000,000. We reserve
the right to accept or decline any application or payment. In
certain states we also accept initial and additional premium payments
by wire order. Wire transmittals must be accompanied by sufficient
electronically transmitted data.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
Who may purchase this Contract? The Contract may be purchased by
individuals as part of a personal retirement plan (a "non-qualified
Contract"), or as a Contract that qualifies for special tax treatment
when purchased as either an Individual Retirement Annuity (IRA) or in
connection with a qualified retirement plan (each a "qualified
Contract").
The Contract is designed for people seeking long-term tax-deferred
accumulation of assets, generally for retirement or other long-term
purposes. The tax-deferred feature is more attractive to people in
high federal and state tax brackets. You should not buy this
Contract if you are looking for a short-term investment or if you
cannot risk getting back less money than you put in.
4.THE INVESTMENT PORTFOLIOS
You can direct your money into any one or more of the following 13
mutual fund investment portfolios through our Separate Account A.
The investment portfolios are described in the prospectuses for the
GCG Trust, Travelers Series Fund Inc., Greenwich Street Series Fund
Inc. and Smith Barney Concert Allocation
2
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<PAGE>
Series Inc. If you invest in any of the following investment
portfolios, depending on market conditions, you may make or lose
money:
THE GCG TRUST
Total Return Series
Research Series
Mid-Cap Growth Series
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value Portfolio
Smith Barney International Equity Portfolio
Smith Barney High Income Portfolio
Smith Barney Money Market Portfolio
GREENWICH STREET SERIES FUND INC.
Appreciation Portfolio
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select High Growth Portfolio
Select Growth Portfolio
Select Balanced Portfolio
Select Conservative Portfolio
Select Income Portfolio
5.EXPENSES
The Contract has insurance features and investment features, and
there are costs related to each. The Company deducts an annual
contract administrative charge of $30. We also collect a mortality
and expense risk charge and an asset-based administrative charge.
These 2 charges are deducted daily directly from the amounts in the
investment portfolios. The annual rate of the asset-based administrative
charge and the mortality and expense risk charge is as follows:
Mortality & Expense Risk Charge ........... 1.25%
Asset-Based Administrative Charge.......... 0.15%
----
Total.................................... 1.40%
Each investment portfolio has charges for investment management fees
and other expenses. These charges, which vary by investment
portfolio, currently range from 0.64% to 1.25% annually (see table
below) of the portfolio's average daily net asset balance.
We deduct a surrender charge if you surrender your Contract or withdraw
an amount exceeding earnings plus the free withdrawal amount. We also
deduct a surrender charge if you annuitize under Plan A-Opiton 1.
If you withdraw money from your Contract, or if you begin receiving
annuity payments, we may deduct a premium tax of 0%-3.5% to pay to
your state.
At any time you may make a withdrawal, without the imposition of a
withdrawal charge, of an amount equal to the sum of:
(1)earnings (contract value less unliquidated premium payments
not withdrawn);
(2)payments in the Contract for more than eight years; and
(3)an amount which is equal to 10% of the payments in the
Contract for less than eight years, fixed at the time of the
first withdrawal in the contract year, plus 10% of the
payments made after the first withdrawal in the contract year
but before the next contract anniversary, less any withdrawals
in the same Contract year of payments less than eight years
old.
The following table shows the schedule of the surrender charge that
will apply. The surrender charge is a percent of each premium
payment.
3
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COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
| | | | | | | |
SURRENDER CHARGE 8%| 7%| 6%| 5%| 4%| 3%| 2%| 1%| 0%
The following table is designed to help you understand the Contract
charges. The "Total Annual Insurance Charges" column includes the
maximum mortality and expense risk charge, the asset-based
administrative charge, and reflects the annual contract
administrative charge as 0.075% (based on an average contract value
of $40,000). The "Total Annual Investment Portfolio Charges" column
reflects the portfolio charges for each portfolio and are based on
actual expenses as of December 31, 1998 for the Greenwich Street Series
Fund; as of January 31, 1999 for the Concert Allocation Series, Inc.;
and as of October 31, 1998 for the Travelers Series Fund Inc. The GCG
Trust portfolios commenced operations during 1998 and therefore
charges have been annualized. The column "Total Annual Charges"
reflects the sum of the previous two columns. The columns under the
heading "Examples" show you how much you would pay under the Contract
for a 1-year period and for a 10-year period.
As required by the Securities and Exchange Commission, the examples
assume that you invested $1,000 in a Contract that earns 5% annually
and that you withdraw your money at the end of Year 1 or at the end
of Year 10. For Years 1 and 10, the examples show the total annual
charges assessed during that time. For these examples, the premium
tax is assumed to be 0%.
[Table with shaded heading adn shaded lines for readability]
- --------------------------------------------------------------------------------
TOTAL ANNUAL EXAMPLES:
TOTAL ANNUAL INVESTMENT TOTAL TOTAL CHARGES AT THE END OF:
INSURANCE PORTFOLIO ANNUAL
INVESTMENT PORTFOLIO CHARGES CHARGES CHARGES 1 YEAR 10 YEARS
- -------------------------------------------------------------------------------
THE GCG TRUST
Total Return 1.48% 0.97% 2.45% $104.76 $277.25
Research 1.48% 0.94% 2.42% $104.46 $274.24
Mid-Cap Growth 1.48% 0.95% 2.43% $104.56 $275.25
TRAVELERS SERIES
FUND INC.
Smith Barney Large Cap
Value 1.48% 0.68% 2.16% $101.85 $247.77
Smith Barney
International Equity 1.48% 1.00% 2.48% $105.06 $280.25
Smith Barney High Income 1.48% 0.67% 2.15% $101.75 $246.74
Smith Barney Money Market 1.48% 0.64% 2.12% $101.45 $243.63
GREENWICH STREET SERIES
FUND INC.
Appreciation 1.48% 0.80% 2.28% $103.06 $260.08
SMITH BARNEY CONCERT
ALLOCATION SERIES INC.
Select High Growth 1.48% 1.25% 2.73% $107.56 $304.85
Select Growth 1.48% 1.16% 2.64% $106.66 $296.07
Select Balanced 1.48% 1.05% 2.53% $105.56 $285.22
Select Conservative 1.48% 1.07% 2.55% $105.76 $287.21
Select Income 1.48% 1.02% 2.50% $105.26 $282.24
- - ------------------------------------------------------------------------------
The "Total Annual Investment Portfolio Charges" reflect a current
expense reimbursement for the Total Return portfolio. The Year 1
examples above include a 8% surrender charge. For more detailed
information, see the fee table in the prospectus for the Contract.
4
<PAGE>
<PAGE>
6.TAXES
Under a qualified Contract, your premiums are generally pre-tax
or tax deductible contributions and accumulate on a tax-deferred basis.
Premiums and earnings are generally taxed as income when you make a
withdrawal or begin receiving annuity payments, presumably when you
are in a lower tax bracket.
Under a non-qualified Contract, premiums are paid with after-tax
dollars, and any earnings will accumulate tax-deferred. You will be
taxed on these earnings, but not on premiums, when you withdraw them
from the Contract.
For owners of most qualified Contracts, when you reach age 70 1/2 (or
in some cases, retire), you will be required by federal tax laws to
begin receiving payments from your annuity or risk paying a penalty
tax. In those cases, we can calculate and pay you the minimum
required distribution amounts. If you are younger than 59 1/2 when
you take money out, in most cases, you will be charged a 10% federal
penalty tax on the amount withdrawn.
7.WITHDRAWALS
You can withdraw your money at any time during the accumulation
phase. You may elect in advance to take systematic withdrawals which
are described on page 7. Withdrawals above earnings and the free
withdrawal amount may be subject to a surrender charge. Income tax
and a penalty tax may apply to amounts withdrawn.
8.PERFORMANCE
The value of your Contract will fluctuate depending on the investment
performance of the portfolio(s) you choose. The following chart
shows average annual total return for each portfolio for the time
periods shown. These numbers reflect the deduction of the mortality
and expense risk charge, the asset-based administrative charge and
the annual contract fee, but do not reflect deductions for any
surrender charges. Please keep in mind that past performance is not
a guarantee of future results.
[Table with shaded heading adn shaded lines for readability]
YEAR YEAR YEAR
INVESTMENT PORTFOLIO 1998 1997 1996 1995
-----------------------------------------------------------------
Managed by Massachusetts Financial
Services Company***
Total Return 9.96% 19.10% 12.02% 22.74%
Research 21.26% 18.37% 21.54% 34.63%
Mid-Cap Growth 21.02% 17.91% 18.72% 27.59%
Managed by SSBC Fund Management Inc.**
Smith Barney Large Cap Value 8.22% 24.78% 17.98% --
Smith Barney International Equity 4.95% 1.20% 15.05% --
Smith Barney High Income (1.04%) 12.19% 11.50% --
Smith Barney Money Market 3.52% 3.56% 3.38% --
Appreciation 17.41% 24.55% 12.38% --
Managed by Travelers Investment*
Adviser, Inc.
Select High Growth 13.69% -- -- --
Select Growth 12.29% -- -- --
Select Balanced 7.93% -- -- --
Select Conservative 4.61% -- -- --
Select Income 4.03% -- -- --
*Year Ended January 31, 1999
**Year Ended October 31, 1999
***Year Ended December 31, 1999
9.DEATH BENEFIT
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are the annuitant, your beneficiary
will receive a death benefit unless the beneficiary is your surviving
spouse and elects to continue the Contract. The death benefit value
is calculated at the close of the business day on which we receive
proof of death at our Customer Service Center and the beneficiary's
election regarding payment. If the beneficiary
5
<PAGE>
<PAGE>
elects not to take the death benefit at the time of death, the death
benefit in the future may be affected. The proceeds may be received
in a single sum or applied to any of the annuity options within one
year of death. If we do not receive a request to apply the death
benefit proceeds to an annuity option, we will make a single sum
distribution. We will generally pay death benefit proceeds within
7 days after our Customer Service Center has received sufficient
information to make the payment.
The death benefit may be subject to certain mandatory distribution
rules required by federal tax laws.
DEATH PROCEEDS
If the annuitant is AGE 67 OR YOUNGER at the time of purchase, the
death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to you
attaining age 76.
If the annuitant is BETWEEN THE AGES OF 68 AND 75 at the time of
purchase, the death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)The contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the
death benefit is the contract value.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
If the owner or annuitant dies after the annuity start date, we will
continue to pay benefits in accordance with the supplemental
agreement in effect.
10.OTHER INFORMATION
FREE LOOK. If you cancel the Contract within 10 days after you
receive it, you will receive a full refund of your contract value.
For purposes of the refund during the free look period, your contract
value includes a refund of any charges deducted from your contract
value. Because of the market risks associated with investing in the
portfolios, the contract value returned may be greater or less than
the premium payment you paid. Some states require us to return to
you the amount of the paid premium (rather than the contract value)
in which case you will not be subject to investment risk during the
free look period. Also, in some states, you may be entitled to a
longer free look period. We determine your contract value at the
close of business on the day we receive your written refund request.
TRANSFERS AMONG INVESTMENT PORTFOLIOS. Prior to the annuity start
date, you may transfer your contract value among the subaccounts in
which you are invested at the end of the free look period. We
currently do not charge you for transfers made during a contract
year, but reserve the right to charge the lesser of 2% of the
Contract value transferred or $25 for each transfer after the twelfth
transfer in a contract year. We also reserve the right to limit the
number of transfers you may make and may otherwise modify or
terminate transfer privileges if required by our business judgement
or in accordance with applicable law. The transfer fee will be
deducted from the amount which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service
Center.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
6
<PAGE>
<PAGE>
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
NO PROBATE. In most cases, when you die, the person you choose as
your beneficiary will receive the death benefit without going through
probate.
ADDITIONAL FEATURES. This Contract has other features you may be
interested in. These include:
Dollar Cost Averaging. This is a program that allows you to
invest a fixed amount of money in the investment portfolios each
month, which may give you a lower average cost per unit over
time than a single one-time purchase. Dollar cost averaging
requires regular investments regardless of fluctuating price
levels, and does not guarantee profits or prevent losses in a
declining market. The minimum amount which may be transferred
is $100. You must participate for at least five (5) months and
have a minimum of $500 in the subaccount from which dollar cost
averaging payments will be taken.
Systematic Withdrawals. During the accumulation phase, you
can arrange to have money sent to you at regular intervals
throughout the year. Within limits, these withdrawals will not
result in any withdrawal charge. Of course, any applicable
income and penalty taxes will apply on amounts withdrawn.
Automatic Rebalancing. If your contract value is $25,000 or
more, you may elect to have the Company automatically readjust
the money between your investment portfolios periodically to
keep the blend you select. Investments in the fixed account are
not eligible for automatic rebalancing. However, we reserve the
right to offer the program on contracts with a lesser amount.
11.INQUIRIES
If you need more information after reading this prospectus, please
contact us at:
CUSTOMER SERVICE CENTER
P.O. BOX 2700
WEST CHESTER, PENNSYLVANIA 19380
(800) 366-0066
or your registered representative.
7
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<PAGE>
<PAGE>
[begin shaded block]
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A OF EQUITABLE LIFE INSURANCE COMPANY OF IOWA
MAY 1, 1999
INDIVIDUAL FLEXIBLE PREMIUM
DEFERRED VARIABLE ANNUITY
PRIMELITE
[end shaded block]
- - ---------------------------------------------------------------------------
This prospectus describes an Individual Flexible Premium Deferred
Variable Contract (the "Contract") offered by Equitable Life
Insurance Company of Iowa (the "Company," "we" or "our"). The
Contract is available in connection with certain retirement plans
that qualify for special federal income tax treatment ("qualified
Contracts") as well as those that do not qualify for such treatment
("non-qualified Contracts").
The Contract provides a means for you to invest your premium payments
in one or more of 13 mutual fund investment portfolios. Your contract
value will vary daily to reflect the investment performance of the
investment portfolio(s) you select. The investment portfolios
available under your Contract are:
MASSACHUSETTS FINANCIAL SERVICES SSBC FUND MANAGEMENT INC.
COMPANY Smith Barney Large Cap Value Portfolio
Total Return Series Smith Barney International Equity Portfolio
Research Series Smith Barney High Income Portfolio
Mid-Cap Growth Series Smith Barney Money Market Portfolio
TRAVELERS INVESTMENT ADVISER, INC. Appreciation Portfolio
Select High Growth Portfolio
Select Growth Portfolio
Select Balanced Portfolio
Select Conservative Portfolio
Select Income Portfolio
The above mutual fund investment portfolios are purchased and held by
corresponding divisions of our Separate Account A. We refer to the
divisions as "subaccounts".
For Contracts sold in some states, not all subaccounts are available.
The prospectuses of the GCG Trust, Travelers Series Fund, Greenwich
Street Series Fund and Smith Barney Concert Allocation Series Inc.
may contain portfolios not currently available in connection with
your contract. You have the right ot return the Contract within 10
days after you receive it for a full refund of the contract value
(which may be more or less than the premium payments you paid), or
if required by your state, the original amount of your premium payment.
Longer free look periods apply in some states.
This prospectus provides information that you should know before
investing and should be kept for future reference. A Statement of
Additional Information, dated May 1, 1999, has been filed with the
Securities and Exchange Commission. It is available without charge
upon request. To obtain a copy of this document, write to our
Customer Service Center at P.O. Box 2700, West Chester, Pennsylvania
19380 or call (800) 366-0066, or access the SEC's website
(http://www.sec.gov). The table of contents of the Statement of
Additional Information ("SAI") is on the last page of this prospectus
and the SAI is made part of this prospectus by reference.
- - ---------------------------------------------------------------------------
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED OR
DISAPPROVED THESE SECURITIES OR PASSED UPON THE ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL
OFFENSE.
AN INVESTMENT IN THE GCG TRUST, TRAVELERS SERIES FUND INC., GREENWICH
STREET SERIES FUND AND SMITH BARNEY CONCERT ALLOCATION SERIES INC. IS
NOT A BANK DEPOSIT AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL
DEPOSIT INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY.
THIS PROSPECTUS MUST BE ACCOMPANIED BY A CURRENT PROSPECTUS FOR THE
GCG TRUST, TRAVELERS SERIES FUND INC., GREENWICH STREET SERIES FUND
AND SMITH BARNEY CONCERT ALLOCATION SERIES INC.
<PAGE>
<PAGE>
[Shaded Section Header]
- -----------------------------------------------------------------------------
TABLE OF CONTENTS
- -----------------------------------------------------------------------------
PAGE
Index of Special Terms .................................. 1
Fees and Expenses ....................................... 2
Performance Information ................................. 5
Accumulation Unit..................................... 5
Net Investment Factor................................. 5
Condensed Financial Information....................... 5
Financial Statements ................................. 5
Performance Information............................... 5
Equitable Insurance Company of Iowa...................... 6
The Trusts............................................... 7
Equitable Insurance Company of Iowa Separate Account A .. 7
The Investment Portfolios ............................... 8
Investment Objectives ................................ 8
Investment Portfolio Management Fees.................. 9
The Annuity Contract..................................... 10
Contract Date and Contract Year....................... 10
Annuity Start Date.................................... 10
Contract owner........................................ 10
Annuitant............................................. 10
Beneficiary .......................................... 10
Purchase and Availability of the Contract............. 11
Crediting of Premium Payments......................... 11
Contract value........................................ 11
Cash Surrender Value.................................. 12
Surrendering to Receive the Cash Surrender Value...... 12
Addition, Deletion or Substitution of Subaccounts
and Other Changes................................... 12
Other Important Provisions............................ 13
Withdrawals.............................................. 13
Regular Withdrawals................................... 13
Systematic Withdrawals................................ 13
IRA Withdrawals....................................... 13
Texas Optional Retirement Program .................... 14
Reduction or Elimination of the Withdrawal Charge..... 14
Transfers Among Your Investments......................... 15
Dollar Cost Averaging................................. 16
Automatic Rebalancing................................. 16
Death Benefit............................................ 16
Death Benefit During the Accumulation Phase........... 16
Death Proceeds...................................... 17
Death of the Annuitant.............................. 17
Death of Owner...................................... 18
Trust Beneficiary................................... 18
Charges and Fees......................................... 18
Charges Deducted from the Contract value.............. 19
Surrender Charge.................................... 19
Free Withdrawal Amount.............................. 19
Surrender Charge for Excess Withdrawals............. 19
Premium Taxes ...................................... 19
Administrative Charge............................... 19
i
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[Shaded Section Header]
- -----------------------------------------------------------------------------
TABLE OF CONTENTS (CONTINUED)
- -----------------------------------------------------------------------------
PAGE
Charges and Fees (continued)
Transfer Charge.................................... 19
Charges Deducted from the Subaccounts ............... 20
Mortality and Expense Risk Charge.................. 20
Asset-Based Administrative Charge.................. 20
Trust Expenses....................................... 20
The Annuity Options..................................... 20
Selecting the Annuity Start Date..................... 20
Fixed Payment Plans.................................. 21
Other Contract Provisions............................... 22
Reports to Contract Owners........................... 22
Suspension of Payments............................... 22
In Case of Errors in Your Application................ 23
Assigning the Contract as Collateral................. 23
Contract Changes-Applicable Tax Law.................. 23
Free Look............................................ 23
Group or Sponsored Arrangements...................... 23
Selling the Contract................................. 24
Other Information ...................................... 24
Voting Rights........................................ 24
Year 2000 Problem.................................... 24
State Regulation..................................... 24
Legal Proceedings.................................... 24
Legal Matters........................................ 24
Experts.............................................. 24
Federal Tax Considerations.............................. 25
Statement of Additional Information
Table of Contents.................................... 30
Appendix A
Condensed Financial Information...................... A1
Appendix B
Surrender Charges for Excess Withdrawals Example..... B1
ii
<PAGE>
<PAGE>
[Shaded Section Header]
- -----------------------------------------------------------------------------
INDEX OF SPECIAL TERMS
- -----------------------------------------------------------------------------
The following special terms are used throughout this prospectus.
Refer to the page(s) listed for an explanation of each term:
SPECIAL TERM PAGE
Accumulation Unit 5
Annuitant 10
Annuity Options 20
Annuity Start Date 10
Cash Surrender Value 12
Contract Date 10
Contract Owner 10
Contract value 11
Contract Year 10
Free Withdrawal Amount 19
Net Investment Factor 5
Death Benefit 16
The following terms as used in this prospectus have the same or
substituted meanings as the corresponding terms currently used in the
Contract:
TERM USED IN THIS PROSPECTUS CORRESPONDING TERM USED IN THE CONTRACT
Surrender Charge Withdrawal Charge
Automatic Rebalancing Automatic Portfolio Rebalancing
Systematic Withdrawals Automatic Withdrawals
Annuity Start Date Maturity Date
Premium Payment Purchase Payment
Annual Contract Administrative Charge Annual Contract Maintenance
Charge
Business Day Valuation Date
Asset-Based Administrative Charge Administrative Charge
Contract Date Issue Date
Contract Year Contract Anniversary Date
Accumulation Phase Accumulation Period
Annuity Options Payment Plans
Cash Surrender Value Contract Withdrawal Value
1
<PAGE>
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[Shaded Section Header]
- -----------------------------------------------------------------------------
FEES AND EXPENSES
- -----------------------------------------------------------------------------
CONTRACT OWNER TRANSACTION EXPENSES
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+|
SINCE PREMIUM PAYMENT | | | | | | | | |
| | | | | | | | |
SURRENDER CHARGE 8%| 7%| 6%| 5%| 4%| 3%| 2%| 1%| 0%|
TRANSFER CHARGE
There is no charge for the first 12 tranfers in a Contract Year;
thereafter the fee is the lesser of 2% of the Contract value
transferred or $25.
ANNUAL CONTRACT ADMINISTRATIVE CHARGE
Administrative Charge...................... $30
SEPARATE ACCOUNT ANNUAL CHARGES***
Mortality and Expense Risk Charge......... 1.25%
Asset-Based Administrative Charge ........ 0.15%
----
Total Separate Account Charges ........... 1.40%
***As a percentage of average assets in each subaccount.
THE GCG TRUST ANNUAL EXPENSES (as a percentage of the average daily
net assets of an investment portfolio or on the combined average
daily net assets of the indicated groups of portfolios):
[Shaded Sectin Header]
|---------------------------------------------------------------------------|
| OTHER TOTAL |
| EXPENSES(2) EXPENSES |
| MANAGEMENT AFTER EXPENSE AFTER EXPENSE |
| PORTFOLIO FEES(1) REIMBURSEMENT REIMBURSEMENT(3) |
|---------------------------------------------------------------------------|
| Total Return 0.94% 0.03% 0.97%(3) |
| Research 0.94% 0.00% 0.94% |
| Mid-Cap Growth 0.94% 0.01% 0.95% |
|---------------------------------------------------------------------------|
(1)Fees decline as combined assets increase. See the prospectus for
the GCG Trust for more information.
(2)Other expenses generally consist of independent trustees fees and
certain expenses associated with investing in international
markets. Other expenses are based on actual expenses for the year
ended December 31, 1998, except for portfolios that commenced
operations in 1998 where the charges have been annualized.
(3)Directed Services, Inc. is currently reimbursing expenses and
waiving management fees to maintain Total Expenses at 0.97% for
the Total Return portfolio as shown. This reimbursement will
remain in place through December 31, 1999. Without this
Agreement, and based on current estimates, Total Expenses for the
Total Return portfolio would be 0.98%.
TRAVELERS SERIES FUND INC. ANNUAL EXPENSES (as a percentage of the
average daily net assets of a portfolio):
[Shaded Sectin Header]
|--------------------------------------------------------------------------|
| MANAGEMENT OTHER TOTAL |
| PORTFOLIO FEES EXPENSES(1) EXPENSES |
|--------------------------------------------------------------------------|
| Smith Barney Large Cap Value 0.65% 0.03% 0.68% |
| Smith Barney International |
| Equity 0.90% 0.10% 1.00% |
| Smith Barney High Income 0.60% 0.07% 0.67% |
| Smith Barney Money Market 0.50% 0.14% 0.64% |
|--------------------------------------------------------------------------|
(1)Other expenses are based on actual expenses for the year
ended October 31, 1998.
2
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GREENWICH STREET SERIES FUND ANNUAL EXPENSES (as a percentage of the
average daily net assets of a portfolio):
[Shaded Sectin Header]
|--------------------------------------------------------------------------|
| MANAGEMENT OTHER TOTAL |
| PORTFOLIO FEES EXPENSES(1) EXPENSES |
|--------------------------------------------------------------------------|
| Appreciation 0.55% 0.25% 0.80% |
|--------------------------------------------------------------------------|
(1)Other expenses are based on actual expenses for the year
ended December 31, 1998.
SMITH BARNEY CONCERT ALLOCATION SERIES INC. ANNUAL EXPENSES (as a
percentage of the average daily net assets of a portfolio):
[Shaded Sectin Header]
|--------------------------------------------------------------------------|
| MANAGEMENT OTHER TOTAL |
| PORTFOLIO FEES EXPENSES(1) EXPENSES |
|--------------------------------------------------------------------------|
| Select High Growth 0.35% 0.90% 1.25% |
| Select Growth 0.35% 0.81% 1.16% |
| Select Balanced 0.35% 0.70% 1.05% |
| Select Conservative 0.35% 0.72% 1.07% |
| Select Income 0.35% 0.67% 1.02% |
|--------------------------------------------------------------------------|
(1)Other expenses are based on a weighted average of the expense
ratios of the underlying fund in which a particular portfolio was
invested on January 31, 1999. The expense ratios for the underlying
funds are based on actual expenses for each Portfolio's Class Y
shares as of the end of such funds most recent fiscal year.
The purpose of the foregoing tables is to help you understand the
various costs and expenses that you will bear directly and
indirectly. See the prospectuses of the GCG Trust, Travelers Series
Fund Inc., Greenwich Street Series Fund and Smith Barney Concert
Allocation Series Inc. for additional information on portfolio
expenses.
Premium taxes (which currently range from 0% to 3.5% of premium
payments) may apply, but are not reflected in the tables above or in
the examples below.
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EXAMPLES:
The following examples are based on an assumed 5% annual return.
If you surrender your contract at the end of the applicable time
period, or if you choose Payment plan A - Option 2, you would pay the
following expenses for each $1,000 invested:
- - --------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Total Return ................$104.76 $139.14 $175.11 $277.25
Research ....................$104.46 $138.24 $173.60 $274.24
Mid-Cap Growth...............$104.56 $138.54 $174.10 $275.25
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value.$101.85 $130.38 $160.45 $247.77
Smith Barney International
Equity.....................$105.06 $140.04 $176.61 $280.25
Smith Barney High Income.....$101.75 $130.08 $159.94 $246.74
Smith Barney Money Market....$101.45 $129.17 $158.41 $243.63
GREENWICH STREET SERIES FUND
Appreciation.................$103.06 $134.01 $166.54 $260.08
SMITH BARNEY CONCERT
ALLOCATION SERIES INC.
Select High Growth...........$107.56 $138.53 $180.05 $304.85
Select Growth................$106.66 $135.84 $175.59 $296.07
Select Balanced .............$105.56 $132.55 $170.11 $285.22
Select Conservative..........$105.76 $133.15 $171.11 $287.21
Select Income................$105.26 $131.64 $168.61 $282.24
If you do not surrender your Contract or if you annuitize on the
annuity start date under a payment plan other than Plan A, Option 2,
you would pay the following expenses for each $1,000 invested:
- - --------------------------------------------------------------------------
THE GCG TRUST 1 YEAR 3 YEARS 5 YEARS 10 YEARS
Total Return.................$24.76 $76.14 $130.11 $277.25
Research.....................$24.46 $75.24 $128.60 $274.24
Mid-Cap Growth...............$24.56 $75.54 $129.10 $275.65
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value.$21.85 $67.38 $115.45 $247.77
Smith Barney International
Equity.....................$25.06 $77.04 $131.61 $280.25
Smith Barney High Income.....$21.75 $67.08 $114.94 $246.74
Smith Barney Money Market....$21.45 $66.17 $113.41 $243.63
GREENWICH STREET SERIES FUND
Appreciation................$23.06 $71.01 $121.54 $260.08
SMITH BARNEY CONCERT
ALLOCATION SERIES INC.
Select High Growth...........$27.56 $75.53 $135.05 $304.85
Select Growth................$26.66 $72.84 $130.59 $296.07
Select Balanced..............$25.56 $69.55 $125.11 $285.22
Select Conservative..........$25.76 $70.15 $126.11 $287.21
Select Income................$25.26 $68.64 $123.61 $282.24
The example above reflects the annual administrative charge as an
annual charge of 0.075% of assets (based on an average contract value
of $40,000). Your charge would be higher for smaller Contract values
and lower for higher Contract values. Premium taxes may apply and
are not reflected in the example.
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THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR
FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE
SHOWN SUBJECT TO THE TERMS OF YOUR CONTRACT.
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- ----------------------------------------------------------------------------
PERFORMANCE INFORMATION
- ----------------------------------------------------------------------------
ACCUMULATION UNIT
We use accumulation units to calculate the value of a Contract. Each
subaccount of Separate Account A has its own accumulation unit value.
The accumulation units are valued each business day that the New York
Stock Exchange is open for trading. Their values may increase or
decrease from day to day according to a Net Investment Factor, which
is primarily based on the investment performance of the applicable
investment portfolio. Shares in the investment portfolios are valued
at their net asset value.
THE NET INVESTMENT FACTOR
The Net Investment Factor is an index number which reflects charges
under the Contract and the investment performance of the subaccount.
The Net Investment Factor is calculated as follows:
(1)We take the net asset value of the subaccount at the end of
each business day.
(2)We add to (1) the amount of any dividend or capital gains
distribution declared for the subaccount and reinvested in
such subaccount. We subtract from that amount a charge for
our taxes, if any.
(3)We divide (2) by the net asset value of the subaccount
at the end of the preceding business day.
(4)We then subtract the daily mortality and expense risk charge
and the daily asset-based administrative charge from each
subaccount.
Calculations for the subaccount are made on a per share basis.
CONDENSED FINANCIAL INFORMATION
Tables containing (i) the accumulation unit value history of each
subaccount of Equitable Life Insurance Company of Iowa Separate
Account A available through the Contract, offered in this prospectus
and (ii) the total investment value history of each subaccount are
presented in Appendix A - Condensed Financial Information.
FINANCIAL STATEMENTS
The audited financial statements of Equitable Life Insurance Company
of Iowa Separate Account A for the years ended December 31, 1998 and
1997 and Equitable Life Insurance Company of Iowa for the years ended
December 31, 1998, 1997 and 1996 are included in the Statement of
Additional Information.
PERFORMANCE INFORMATION
From time to time, we may advertise or include in reports to contract
owners performance information for the subaccounts of Separate
Account A, including the average annual total return performance,
yields and other nonstandard measures of performance. Such
performance data will be computed, or accompanied by performance data
computed, in accordance with standards defined by the SEC.
Except for the Smith Barney Money Market subaccount, quotations of
yield for the subaccounts will be based on all investment income per
unit (contract value divided by the accumulation unit) earned during
a given 30-day period, less expenses accrued during such period.
Information on standard total average annual return performance will
include average annual rates of total return for 1, 5 and 10 year
periods, or lesser periods depending on how long the subaccount of
Separate Account A has been in existence. We may show other total
returns for periods less than one year. Total return figures will be
based on the actual historic performance of the subaccounts of
Separate Account A, assuming an investment at the beginning of the
period, withdrawal of the investment at the end of the period, and
the deduction of all applicable portfolio
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and contract charges. We may also show rates of total
return on amounts invested at the beginning of the period
with no withdrawal at the end of the period. Total return figures
which assume no withdrawals at the end of the period will
reflect all recurring charges, but will not reflect the surrender
charge. In addition, we may present historic performance
data for the mutual fund investment portfolios since their inception
reduced by some or all of the fees and charges under the Contract.
Such adjusted historic performance includes data that precedes the
inception dates of the subaccounts of Separate Account A. This data
is designed to show the performance that would have resulted if the
Contract had been in existence during that time.
Current yield for the Smith Barney Money Market subaccount is based
on income received by a hypothetical investment over a given 7-day
period, less expenses accrued, and then "annualized" (i.e., assuming
that the 7-day yield would be received for 52 weeks). We calculate
"effective yield" for the Smith Barney Money Market subaccount in a
manner similar to that used to calculate yield, but when annualized,
the income earned by the investment is assumed to be reinvested. The
"effective yield" will thus be slightly higher than the "yield"
because of the compounding effect of earnings. We calculate
quotations of yield for the remaining subaccounts on all investment
income per accumulation unit earned during a given 30-day period,
after subtracting fees and expenses accrued during the period.
We may compare performance information for a subaccount to: (i) the
Standard & Poor's 500 Stock Index, Dow Jones Industrial Average,
Donoghue Money Market Institutional Averages, or any other applicable
market indices, (ii) other variable annuity separate accounts or
other investment products tracked by Lipper Analytical Services (a
widely used independent research firm which ranks mutual funds and
other investment companies), or any other rating service, and (iii)
the Consumer Price Index (measure for inflation) to assess the real
rate of return from an investment in the Contract. Our reports and
promotional literature may also contain other information including
the ranking of any subaccount based on rankings of variable annuity
separate accounts or other investment products tracked by Lipper
Analytical Services or by similar rating services.
Performance information reflects only the performance of a
hypothetical contract and should be considered in light of other
factors, including the investment objective of the investment
portfolio and market conditions. Please keep in mind that past
performance is not a guarantee of future results.
[Shaded Sectin Header]
- ----------------------------------------------------------------------------
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
- ----------------------------------------------------------------------------
Equitable Life Insurance Company of Iowa ("Equitable Life") was
founded in Iowa in 1867 and is the oldest life insurance company west
of the Mississippi. The Company is currently licensed to do business
in the District of Columbia and all states except New Hampshire and
New York. The Company is a wholly owned subsidiary of Equitable of
Iowa Companies, Inc. ("Equitable of Iowa"), a Delaware corporation,
which in turn is a wholly owned subsidiary of ING Groep N.V. ("ING").
On October 24, 1997, ING acquired all interest in Equitable of Iowa
and its subsidiaries. ING, based in The Netherlands, is a global
financial services holding company with approximately $461.8 billion
in assets as of December 31, 1998.
Equitable of Iowa is the holding company for Golden American Life
Insurance Company, Directed Services, Inc., the investment manager of
the GCG Trust, and other interests. Equitable of Iowa and another ING
affiliate own ING Investment Management, LLC, a portfolio manager of
the GCG Trust. ING also owns Baring International Investment
Limited, another portfolio manager of the GCG Trust.
Our principal office is located at 909 Locust Street, Des Moines,
Iowa 50309.
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- ----------------------------------------------------------------------------
THE TRUSTS
- ----------------------------------------------------------------------------
The GCG Trust is a mutual fund whose shares are available to separate
accounts funding variable annuity and variable life insurance
policies offered by Equitable Life. The GCG Trust also sells its
shares to separate accounts of other insurance companies, both
affiliated and not affiliated with Equitable Life. Pending SEC
approval, shares of the GCG Trust may also be sold to certain
qualified pension and retirement plans.
The Travelers Series Fund, Greenwich Street Series Fund and Smith
Barney Concert Allocation Series Inc. are also mutual funds whose
shares are available to Separate Account A which funds variable
insurance products offered by Equitable Life. The Travelers Series
Fund and Greenwich Street Series Fund shares may also be available to
other separate accounts funding variable insurance products offered
by Equitable Life. The Travelers Series Fund, Greenwich Street
Series Fund and Smith Barney Concert Allocation Series Inc. may also
sell their shares to separate accounts of other insurance companies,
both affiliated and not affiliated with Equitable Life. The
principal address of Travelers Series Fund, Greenwich Street Series
Fund and Smith Barney Concert Allocation Series is 388 Greenwich
Street, New York, New York 10013.
In the event that, due to differences in tax treatment or other
considerations, the interests of contract owners of various contracts
participating in the Trusts conflict, we, the Boards of Trustees of
the GCG Trust, Travelers Series Fund, Greenwich Street Series Fund
and Smith Barney Concert Allocation Series Inc., Directed Services,
Inc., and any other insurance companies participating in the Trusts
will monitor events to identify and resolve any material conflicts
that may arise.
YOU WILL FIND COMPLETE INFORMATION ABOUT THE GCG TRUST, TRAVELERS
SERIES FUND, GREENWICH STREET SERIES FUND AND SMITH BARNEY CONCERT
ALLOCATION SERIES IN THE ACCOMPANYING TRUSTS' PROSPECTUSES. YOU
SHOULD READ THEM CAREFULLY BEFORE INVESTING.
[Shaded Sectin Header]
- ----------------------------------------------------------------------------
EQUITABLE OF IOWA SEPARATE ACCOUNT A
- ----------------------------------------------------------------------------
Equitable Life Insurance Company of Iowa Separate Account A ("Account
A") was established as a separate account of the Company on July 14,
1988. It is registered with the Securities and Exchange Commission
as a unit investment trust under the Investment Company Act of 1940.
Account A is a separate investment account used for our variable
annuity contracts. We own all the assets in Account A but such
assets are kept separate from our other accounts.
Account A is divided in subaccounts. Each subaccount invests
exclusively in shares of one mutual fund investment portfolio of the
GCG Trust, Travelers Series Fund, Greenwich Street Series Fund and
Smith Barney Concert Allocation Series Inc. Each investment
portfolio has its own distinct investment objectives and policies.
Income, gains and losses, realized or unrealized, of a portfolio are
credited to or charged against the corresponding subaccount of
Account A without regard to any other income, gains or losses of the
Company. Assets equal to the reserves and other contract liabilities
with respect to each are not chargeable with liabilities arising out
of any other business of the Company. They may, however, be subject
to liabilities arising from subaccounts whose assets we attribute to
other variable annuity contracts supported by Account A. If the
assets in Account A exceed the required reserves and other
liabilities, we may transfer the excess to our general account. We
are obligated to pay all benefits and make all payments provided
under the Contracts.
We currently offer other variable annuity contracts that invest in
Account A but are not discussed in this prospectus. Account A may
also invest in other investment portfolios which are not available
under your Contract.
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- ----------------------------------------------------------------------------
THE INVESTMENT PORTFOLIOS
- ----------------------------------------------------------------------------
During the accumulation phase, you may allocate your premium payments
and contract value to any of the investment portfolios listed below.
YOU BEAR THE ENTIRE INVESTMENT RISK FOR AMOUNTS YOU ALLOCATE TO THE
INVESTMENT PORTFOLIOS AND MAY LOSE YOUR PRINCIPAL.
INVESTMENT OBJECTIVES
The investment objective of each investment portfolio is set forth
below. You should understand that there is no guarantee that any
portfolio will meet its investment objectives. Meeting objectives
depends on various factors, including, in certain cases, how well the
portfolio managers anticipate changing economic and market
conditions. MORE DETAILED INFORMATION ABOUT THE INVESTMENT
PORTFOLIOS CAN BE FOUND IN THE PROSPECTUSES FOR THE GCG TRUST,
TRAVELERS SERIES FUND, GREENWICH STREET SERIES FUND AND SMITH BARNEY
CONCERT ALLOCATION SERIES. YOU SHOULD READ THESE PROSPECTUSES BEFORE
INVESTING.
[Shaded Section Header]
- ----------------------------------------------------------------------------
INVESTMENT PORTFOLIO INVESTMENT OBJECTIVE
- ----------------------------------------------------------------------------
Total Return Seeks above-average income (compared to a portfolio
entirely invested in equity securities)
consistent with the prudent employment of
capital.
Invests primarily in a combination of equity
and fixed income securities.
------------------------------------------------------
Research Seeks long-term growth of capital and future income.
Invests primarily in common stocks or
securities convertible into common stocks of
companies believed to have better than average
prospects for long-term growth.
------------------------------------------------------
Mid-Cap Growth Seeks long-term growth of capital.
Invests primarily in equity securities of
companies with medium market capitalization
which the portfolio manager believes have
above-average growth potential.
------------------------------------------------------
Smith Barney
Large Cap
Value Seeks current income and long-term growth of income
and capital.
Invests primarily in common stocks of U. S.
companies having a market capitalization of
at least $5 billion at the time of investment.
------------------------------------------------------
Smith Barney
International
Equity Seeks total return on its assets from growth of capital and
income.
Invests primarily in a diversified portfolio
of equity securities of established non-U.S.
issuers.
------------------------------------------------------
Smith Barney High
Income Seeks high current income. Secondary objective:
capital appreciation.
Invests in high-yielding corporate debt
obligations and preferred stock of foreign
issuers. In addition,
the portfolio may invest up to 20% of its
assets in the securities of foreign issuers
that are denominated in currencies other than
U.S. dollars.
------------------------------------------------------
Smith Barney
MoneyMarket Seeks maximum current income and preservation of capital.
Invests in bank obligations and high quality
commercial paper, corporate obligations and
municipal obligations in addition to U.S.
government securities and related repurchase
agreements.
------------------------------------------------------
Appreciation Seeks long-term appreciation of capital.
Invests primarily in equity and equity-related
securities that are believed to afford
attractive opportunities for appreciation.
------------------------------------------------------
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Select High
Growth Seeks capital appreciation.
Invests a large portion of its assets in
aggressive equity mutual funds that focus on
smaller, more speculative companies as well as
mid-sized (or larger) companies with the
potential for rapid growth. A significant
portion of the portfolio may be invested in
international or emerging markets funds in
order to achieve a greater level of
diversification.
------------------------------------------------------
Select Growth Seeks long-term growth of capital.
Invests primarily in mutual funds that focus on
large-capitalization equity securities, to
provide growth. The portfolio also
invests in mutual funds that focus on small-
and middle-capitalization equity securities and
international securities. In addition, a significant
portion of the portfolio is also allocated to
funds that invest in fixed income securities,
to help reduce volatility.
------------------------------------------------------
Select Balanced Seeks long-term growth of capital and income,
placing equal emphasis on current income and
capital appreciation.
The portfolio divides its assets roughly
between equity and fixed-income mutual funds.
The equity funds are primarily large-
capitalization, dividend-paying stock funds.
The fixed-income portion of the portfolio is
mainly invested in funds that invest in U.S.
government and agency securities, as well as
mortgage-backed securities.
------------------------------------------------------
Select
Conservative Seeks income, and secondarily, long-term capital growth.
The portfolio consists primarily of taxable
fixed income funds, with a significant portion
invested in equity funds that invest primarily
in large-capitalization U.S. stocks.
------------------------------------------------------
Select Income Seeks high current income.
The portfolio allocates most of its assets to
taxable fixed-income funds designed to
generate a high level of income consistent
with safety and relative stability of
principal. A small portion of the portfolio
is invested in equity funds that invest primarily
in large-capitalization U.S. stocks.
------------------------------------------------------
INVESTMENT PORTFOLIO MANAGEMENT FEES
Directed Services, Inc. serves as the overall manager of the GCG
Trust Travelers Investment Advisor, Inc. serves as the overall
manager of the Smith Barney Concert Allocation Series and SSBC Fund
Management Inc. serves as the overall manager of Travelers Series
Fund and Greenwich Street Series Fund. Directed Services, Inc. has
retained a portfolio manager to manage the assets of the portfolios
of the GCG Trust.
Directed Services, Inc., Travelers Investment Adviser, Inc. and SSBC
Fund Management Inc. provide or procure, at their own expense, the
services necessary for the operation of the portfolios. The GCG
Trust pays Directed Services for its services a monthly fee based on
the annual rates of the average daily net assets of the investment
portfolios. Each portfolio pays its portfolio manager, for its
services a fee, payable monthly, based on the annual rates of the
average daily net assets of the portfolio. Directed Services, Inc.
(and not the GCG Trust) in turn pays each portfolio manager a monthly
fee for managing the assets of the portfolios.
Directed Services, Inc., Travelers Investment Adviser, Inc. and SSBC
Fund Management Inc. do not bear the expense of brokerage fees and
other transactional expenses for securities, taxes (if any) paid by a
portfolio, interest on borrowing, fees and expenses of the
independent trustees, and extraordinary expenses, such as litigation
or indemnification expenses.
More detailed information about each portfolio's management fees can
be found in the prospectuses for each Trust. You should read these
prospectuses before investing.
[Shaded Section Header]
- ----------------------------------------------------------------------------
THE ANNUITY CONTRACT
- ----------------------------------------------------------------------------
The Contract described in this prospectus is an individual flexible
premium deferred variable annuity Contract. The Contract provides a
means for you to invest in one or more of the available mutual fund
portfolios of the GCG Trust, Travelers Series Fund, Greenwich Street
Series Fund and Smith Barney Concert Allocation Series in which the
subaccounts funded by Account A invest.
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CONTRACT DATE AND CONTRACT YEAR
The date the Contract became effective is the contract date. Each 12-
month period following the contract date is a contract year.
ANNUITY START DATE
The annuity start date is the date you start receiving annuity
payments under your Contract. The Contract, like all deferred
variable annuity contracts, has two phases: the accumulation phase
and the income phase. The accumulation phase is the period between
the contract date and the annuity start date. The income phase
begins when you start receiving regular annuity payments from your
Contract on the annuity start date.
CONTRACT OWNER
You are the contract owner. You are also the annuitant unless
another annuitant is named in the application. You have the rights
and options described in the Contract. One or more persons may own
the Contract.
JOINT OWNER. For non-qualified Contracts only, joint owners may
be named in a written request before the Contract is in effect.
Joint owners may independently exercise transfers and other
transactions allowed under the Contract. All other rights of
ownership must be exercised by both owners. Joint owners own equal
shares of any benefits accruing or payments made to them. All rights
of a joint owner end at death of that owner if the other joint owner
survives. The entire interest of the deceased joint owner in the
Contract will pass to the surviving joint owner.
ANNUITANT
The annuitant is the person designated by you to be the measuring
life in determining annuity payments. The annuitant also determines
the death benefit. The annuitant's age determines when the income
phase must begin and the amount of the annuity payments to be paid.
You are the annuitant unless you choose to name another person. The
annuitant may not be changed after the Contract is in effect.
The contract owner will receive the annuity benefits of the Contract
if the annuitant is living on the annuity start date.
BENEFICIARY
The beneficiary is named by you in a written request. The
beneficiary is the person who receives any death benefit proceeds.
We pay death benefits to the primary beneficiary (unless there are
joint owners, in which case death proceeds are payable to the
surviving owner(s)).
You have the right to change beneficiaries during the annuitant's
lifetime unless you have designated an irrevocable beneficiary. When
an irrevocable beneficiary has been designated, you and the
irrevocable beneficiary may have to act together to exercise some of
the rights and options under the Contract.
Unless you, as the owner, state otherwise, all rights of a
beneficiary, including an irrevocable beneficiary, will end if he or
she dies before the annuitant. If any beneficiary dies before the
annuitant, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests. If all
beneficiaries die before the annuitant, upon the annuitant's death we
will pay the death proceeds to the owner, if living, otherwise to the
owner's estate or legal successors.
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CHANGE OF CONTRACT OWNER OR BENEFICIARY. During the annuitant's
lifetime, you may transfer ownership of a non-qualified Contract. A
change in ownership may affect the amount of the death benefit and
the guaranteed death benefit. You may also change the beneficiary.
All requests for changes must be in writing and submitted to our
Customer Service Center in good order. The change will be effective
as of the day you sign the request. The change will not affect any
payment made or action taken by us before recording the change.
PURCHASE AND AVAILABILITY OF THE CONTRACT
The minimum premium payment for Non-Qualified Contracts is an
aggregate of $5,000 the first year. You may make additional payments
of at least $100 or more at any time after the free look period.
Under certain circumstances, we may waive and/or modify the minimum
subsequent payment requirement. For Qualified Contracts, you may
make the minimum payments of $100 per month if payroll deduction is
used; otherwise it is an aggregate of $2,000 per year. Prior approval
must be obtained from us for subsequent payments in excess of
$500,000 or for total payments in excess of $1,000,000. We reserve
the right to accept or decline any application or payment.
We will issue a Contract only if both the annuitant and the contract
owner are not older than age 85.
CREDITING OF PREMIUM PAYMENTS
We will allocate your premium payments within 2 business days after
receipt, if the application and all information necessary for
processing the Contract are complete. In certain states we also
accept initial and additional premium payments by wire order. Wire
transmittals must be accompanied by sufficient electronically
transmitted data. We may retain premium payments for up to 5
business days while attempting to complete an incomplete application.
If the application cannot be completed within this period, we will
inform you of the reasons for the delay. We will also return the
premium payment immediately unless you direct us to hold it until the
application is completed. Once the completed application is
received, we will allocate the payment within 2 business days. We
will make inquiry to discover any missing information related to
subsequent payments. For any subsequent premium payments, the
payment will be credited at the accumulation unit value next
determined after receipt of your premium payment.
We will allocate your initial premium payment to the subaccount(s) of
the Separate Account A as elected by you. Unless otherwise changed
by you, subsequent premium payments are allocated in the same manner
as the initial premium payment.
Once we allocate your premium payment to the subaccount(s) selected
by you, we convert the premium payment into accumulation units. We
divide the amount of the premium payment allocated to a particular
subaccount by the value of an accumulation unit for the subaccount to
determine the number of accumulation units of the subaccount to be
held in Account A with respect to the Contract. The net investment
results of each subaccount vary with its investment performance.
If your Contract is issued in a state that requires us to return your
premium payment during the free look period, then the portion of the
first premium payment that you had directed to the subaccounts will be
placed in a subaccount specifically designated by us (currently the
Liquid Asset subaccount) for the duration of the free look period.
After the free look period, we will convert your contract value
(your initial premium, plus any earnings less any expenses) into
accumulation units of the subaccounts you previously selected.
The accumulation units will be allocated based on the accumulation
unit value next computed for each subaccount.
CONTRACT VALUE
We determine your contract value on a daily basis beginning on the
contract date. Your contract value is the sum of the contract value
in each subaccount in which you are invested.
CONTRACT VALUE IN THE SUBACCOUNTS. On the contract date, the
contract value in the subaccount in which you are invested is equal
to the initial premium paid and designated to be allocated to the
subaccount. On the contract date, we allocate your contract value to
each subaccount specified by you, unless the
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Contract is issued in a
state that requires the return of premium payments during the free
look period, in which case, the portion of your initial premium will
be allocated to a subaccount specially designated by the Company
during the free look period for this purpose (currently, the Smith
Barney Money Market subaccount).
On each business day after the contract date, we calculate the amount
of contract value in each subaccount as follows:
(1)We take the contract value in the subaccount at the end of the
preceding business day.
(2)We multiply (1) by the subaccount's Net Investment Factor
since the preceding business day.
(3)We add (1) and (2).
(4)We add to (3) any additional premium payments, and then add or
subtract transfers to or from that subaccount.
(5)We subtract from (4) any withdrawals and any related charges,
and then subtract any contract fees, and distribution fee
(annual sales load) and premium taxes.
CASH SURRENDER VALUE
The cash surrender value is the amount you receive when you surrender
the Contract. The cash surrender value will fluctuate daily based on
the investment results of the subaccounts in which you are invested.
We do not guarantee any minimum cash surrender value. On any date
during the accumulation phase, we calculate the cash surrender value
as follows: we start with your contract value, then we deduct any
surrender charge, any Annual Contract Administration Charge, any
charge for premium taxes, and any other charges incurred but not
yet deducted.
SURRENDERING TO RECEIVE THE CASH SURRENDER VALUE
You may surrender the Contract at any time while the annuitant is
living and before the annuity start date. A surrender will be
effective on the date your written request and the Contract are
received at our Customer Service Center. We will determine and pay
the cash surrender value at the price next determined after receipt
of your request. Once paid, all benefits under the Contract will be
terminated. For administrative purposes, we will transfer your money
to a specially designated subaccount (currently the Smith Barney
Money Market subaccount) prior to processing the surrender. This
transfer will have no effect on your cash surrender value. You may
receive the cash surrender value in a single sum payment or apply it
under one or more annuity options. We will usually pay the cash
surrender value within 7 days.
Consult your tax advisor regarding the tax consequences associated
with surrendering your Contract. A surrender made before you reach
age 59 1/2 may result in a 10% tax penalty. See "Federal Tax
Considerations" for more details.
ADDITION, DELETION OR SUBSTITUTION OF SUBACCOUNTS AND OTHER CHANGES
We may make additional subaccounts available to you under the
Contract. These subaccounts will invest in investment portfolios we
find suitable for your Contract.
We may amend the Contract to conform to applicable laws or
governmental regulations. If we feel that investment in any of the
investment portfolios has become inappropriate to the purposes of the
Contract, we may, with approval of the SEC (and any other regulatory
agency, if required) substitute another portfolio for existing and
future investments.
We also reserve the right to: (i) deregister Account A under the 1940
Act; (ii) operate Account A as a management company under the 1940
Act if it is operating as a unit investment trust; (iii) operate
Account A as a unit investment trust under the 1940 Act if it is
operating as a managed separate account; (iv) restrict or eliminate
any voting rights as to Account A; and (v) combine Account A with
other accounts.
We will, of course, provide you with written notice before any of these
changes are effected.
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We offer other variable annuity contracts that also invest in the
same portfolios of the Trusts. These contracts have different charges
that could effect their performance, and may offer different benefits
more suitable to your needs. To obtain more information about these
other contracts, contact our Customer Service Center or your
registered representative.
OTHER IMPORTANT PROVISIONS
See "Withdrawals," "Transfers Among Your Investments," "Death Benefit,"
"Charges and Fees," "The Annuity Options" and "Other
Contract Provisions" in this prospectus for information on other
important provisions in your Contract.
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WITHDRAWALS
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Any time prior to the annuity start date and before the death of the
annuitant, you may withdraw all or part of your money. Keep in mind
that if at least $100 does not remain in a subaccount, we will treat
it as a request to surrender the Contract. For Contracts issued in
Idaho, no withdrawal may be made for 30 days after the date of
purchase. We will terminate the Contract if a total withdrawal is
made. If any single withdrawal or the sum of withdrawals exceeds the
Free Withdrawal Amount, you will incur a surrender charge. See
"Charges and Fees Surrender Charge for Excess Withdrawals." You
need to submit to us a written request specifying accounts from which
amounts are to be withdrawn, otherwise the withdrawal will be made on
a pro rata basis from all of the subaccounts in which you are
invested. We will pay the amount of any withdrawal from the
subaccounts within (7) calendar days of receipt of a request, unless
the "Suspension of Payments or Transfers" provision is in effect. We
will determine the contract value as of the close of business on the
day we receive your withdrawal request at our Customer Service
Center. The Contract value may be more or less than the premium
payments made. Keep in mind that a withdrawal will result in the
cancellation of accumulation units for each applicable subaccount of
the Account A.
For administrative purposes, we will transfer your money to a
specially designated subaccount (currently, the Smith Barney Money
Market subaccount) prior to processing the withdrawal. This transfer
will not effect the withdrawal amount you receive.
We offer the following three withdrawal options:
REGULAR WITHDRAWALS
After the free look period, you may make regular withdrawals. Each
withdrawal must be a minimum of $100 or your entire interest in
the subaccount.
SYSTEMATIC WITHDRAWALS
You may choose to receive automatic systematic withdrawals on the
15th of each month, or any other monthly date mutually agreed upon,
from your contract value in the subaccount(s). Each withdrawal
payment must be at least $100 (or the owner's entire interest in the
subaccount, if less) and is taken pro rata from the subaccount(s).
We reserve the right to charge a fee for systematic withdrawals.
Currently, however, there are no charges for systematic withdrawals.
You must keep $100 in the subaccount or the withdrawal transaction
will be deemed a request to surrender the Contract.
You may change the amount of your systematic withdrawal once each
contract year or cancel this option at any time by sending
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date. You may elect to have
this option begin in a contract year where a regular withdrawal
has been taken but you may not change the amount of your withdrawals
in any contract year during which you had previously taken a regular
withdrawal. You may not elect this if you are taking IRA
withdrawals.
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IRA WITHDRAWALS
If you have a non-Roth IRA Contract and will be at least age 70 1/2
during the current calendar year, you may elect to have distributions
made to you to satisfy requirements imposed by federal tax law. IRA
withdrawals provide payout of amounts required to be distributed by
the Internal Revenue Service rules governing mandatory distributions
under qualified plans. We will send you a notice before your
distributions commence. You may elect to take IRA withdrawals at
that time, or at a later date. You may not elect IRA withdrawals and
participate in systematic withdrawals at the same time. If you do
not elect to take IRA withdrawals, and distributions are required by
federal tax law, distributions adequate to satisfy the requirements
imposed by federal tax law may be made. Thus, if you are
participating in systematic withdrawals, distributions under that
option must be adequate to satisfy the mandatory distribution rules
imposed by federal tax law.
You may choose to receive IRA withdrawals on a monthly, quarterly or
annual basis. Under this option, you may elect payments to start as
early as 28 days after the contract date. You select the day of the
month when the withdrawals will be made, but it cannot be later than
the 28th day of the month. If no date is selected, we will make the
withdrawals on the same calendar day of the month as the contract
date.
You may request that we calculate for you the amount that is required
to be withdrawn from your Contract each year based on the information
you give us and various choices you make. For information regarding
the calculation and choices you have to make, see the Statement of
Additional Information. The minimum dollar amount you can withdraw
is $100. When we determine the required IRA withdrawal amount for a
taxable year based on the frequency you select, if that amount is
less than $100, we will pay $100. At any time where the IRA
withdrawal amount is greater than the contract value, we will cancel
the Contract and send you the amount of the cash surrender value.
You may change the payment frequency of your IRA withdrawals once
each contract year or cancel this option at any time by sending us
satisfactory notice to our Customer Service Center at least 7 days
before the next scheduled withdrawal date.
CONSULT YOUR TAX ADVISER REGARDING THE TAX CONSEQUENCES ASSOCIATED
WITH TAKING WITHDRAWALS. You are responsible for determining that
withdrawals comply with applicable law. A withdrawal made before the
taxpayer reaches age 59 1/2 may result in a 10% penalty tax. See
"Federal Tax Considerations" for more details.
TEXAS OPTIONAL RETIREMENT PROGRAM
A Contract issued to a participant in the Texas Optional Retirement
Program ("ORP") will contain an ORP endorsement that will amend the
Contract as follows:
A) If for any reason a second year of ORP participation is not
begun, the total amount of the State of Texas' first-year
contribution will be returned to the appropriate institute of
higher education upon its request.
B) We will not pay any benefits if the participant surrenders the
Contract or otherwise, until the participant dies, accepts
retirement, terminates employment in all Texas institutions of
higher education or attains the age of 70 1/2. The value of the
Contract may, however, be transferred to other contracts or
carriers during the period of ORP participation. A
participant in the ORP is required to obtain a certificate of
termination from the participant's employer before the value
of a Contract can be withdrawn.
REDUCTION OR ELIMINATION OF THE WITHDRAWAL CHARGE
The amount of the withdrawal charge on the Contracts may be reduced
or eliminated when sales of the Contracts are made to individuals or
to a group of individuals in a manner that results in savings of
sales expenses. We will determine whether we will reduce withdrawal
charges after examining all the relevant factors such as:
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(1) The size and type of group to which sales are to be made.
Generally, the sales expenses for a larger group
are less than for a smaller group because of the ability
to implement large numbers of Contracts with fewer sales
contacts.
(2) The total amount of premium payments to be received .
Per Contract sales expenses are likely to be less
on larger premium payments than on smaller ones.
(3)Any prior or existing relationship with the Company.
Per Contract sales expenses are likely to be less
when there is a prior existing relationship because of the
likelihood of implementing the Contract with fewer sales
contacts.
The withdrawal charge may be eliminated when the Contracts are issued
to an officer, director or employee of the Company or any of its
affiliates. In no event will reductions or elimination of the
withdrawal charge be permitted where reductions or elimination will
be unfairly discriminatory to any person.
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TRANSFERS AMONG YOUR INVESTMENTS
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Prior to the annuity start date and after the free look period, you
may transfer your contract value among the subaccounts in which you
are invested at the end of the free look period until the annuity
start date. If more than 12 transfers are mad in any contract year,
we will cahrge a transfer fee equal to the lesser of 2% of
the Contract value transferred or $25 for each transfer after the
twelfth transfer in a contract year. We also reserve the right to
limit the number of transfers you may make and may otherwise modify
or terminate transfer privileges if required by our business
judgement or in accordance with applicable law. The transfer fee
will be deducted from the amount which is transferred.
Transfers will be based on values at the end of the business day in
which the transfer request is received at our Customer Service
Center. Any transfer fee will be deducted from the amount which is
transferred.
The minimum amount that you may transfer is $100 or, if less, your
entire contract value.
To make a transfer, you must notify our Customer Service Center and
all other administrative requirements must be met. Any transfer
request received after 4:00 p.m. eastern time or the close of the New
York Stock Exchange will be effected on the next business day.
Account A and the Company will not be liable for following
instructions communicated by telephone that we reasonably believe to
be genuine. We require personal identifying information to process a
request for transfer made over the telephone.
DOLLAR COST AVERAGING
You may elect to participate in our dollar cost averaging program
if you have at least $500 of contract value in any subaccount. That
subaccount will serve as the source account from which we will,
on a monthly, automatically transfer a set dollar amount of money
to other subaccount(s) you select. Dollar Cost Averaging is
designed to lessen the impact of market fluctuation on your
investment. Since we transfer the same dollar amount to other
subaccounts each month, more units of a subaccount are purchased if
the value of its unit is low and less units are purchased if the
value of its unit is high. Therefore, a lower than average value per
unit may be achieved over the long term. However, we cannot
guarantee this. When you elect the dollar cost averaging program,
you are continuously investing in securities regardless of
fluctuating price levels. You should consider your tolerance for
investing through periods of fluctuating price levels.
You elect the dollar amount you want transferred under this program.
Each monthly transfer must be at least $100. you must participate in
any dollar cost averaging program for at least five (5) months.
All dollar cost averaging transfers will be made on the 15th of each
month or another monthly date mutually agreed upon (or the next
business day if the 15th of the month is not a business day). Such
transfers currently are not taken into account in determining any
transfer fees. We reserve the right to treat dollar cost averaging
transfers as standard transfers when determining the number of
transfers in a year and imposing any applicable transfer fees. If
you, as an owner, participate in the dollar cost averaging program
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you may not make automatic withdrawals of your contract value or
participate in the automatic rebalancing program.
If you do not specify the subaccounts to which the dollar amount of
the source account is to be transferred, we will transfer the money
to the subaccounts in which you are invested on a proportional basis.
If, on any transfer date, your contract value in a source account is
equal or less than the amount you have elected to have transferred,
the entire amount will be transferred and the program will end. You
may terminate the dollar cost averaging program at any time by
sending satisfactory notice to our Customer Service Center at least 7
days before the next transfer date.
We may in the future offer additional subaccounts or withdraw any
subaccount to or from the dollar cost averaging program, or otherwise
modify, suspend or terminate this program. Of course, such change
will not affect any dollar cost averaging programs in operation at
the time.
AUTOMATIC REBALANCING
If you have at least $25,000 of contract value invested in the
subaccounts of Account A, you may elect to have your investments in
the subaccounts automatically rebalanced. We will transfer funds
under your Contract on a quarterly, semi-annual, or annual calendar
basis among the subaccounts to maintain the investment blend of your
selected subaccounts. The minimum size of any allocation must be in
full percentage points. Rebalancing does not affect any amounts that
you have allocated. The program may be used in conjunction with the
systematic withdrawal option only if withdrawals are taken pro rata.
Automatic rebalancing is not available if you participate in dollar
cost averaging. Automatic rebalancing will not take place during the
free look period. All automatic rebalancing transfers will be made
on the 15th of the month that rebalancing is requested or another
monthly date mutually agreed upon (or the next valuation date, if the
15th of the month is not a business day).
To participate in automatic rebalancing, send satisfactory notice to
our Customer Service Center. We will begin the program on the last
business day of the period in which we receive the notice. You may
cancel the program at any time. The program will automatically
terminate if you choose to reallocate your contract value among the
subaccounts or if you make an additional premium payment or partial
withdrawal on other than a pro rata basis. Additional premium
payments and partial withdrawals effected on a pro rata basis will
not cause the automatic rebalancing program to terminate.
If you, as the Contract owner, are participating in automatic
rebalancing, such transfers currently are not taken into account in
determining any transfer fee. We reserve the right to treat
automatic rebalancing transfers as standard transfers when
determining the number of transfers in a year and imposing any
applicable transfer fees.
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DEATH BENEFIT
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DEATH BENEFIT DURING THE ACCUMULATION PERIOD
We will pay a death benefit if the annuitant dies before the annuity
start date. Assuming you are also the contract owner, your
beneficiary will receive a death benefit unless the beneficiary is
your surviving spouse and elects to continue the Contract. The death
benefit value is calculated at the close of the business day on which
we receive proof of death at our Customer Service Center and the
beneficiay's election regarding payment. If the beneficiary
elects not to take the death benefit at the time of death,
the death benefit in the future may be affected. If the deceased
annuitant was not an owner, the proceeds may be received in
a single sum or applied to any of the annuity options
within one year of death. If the deceased annuitant was an Owner,
then the proceeds must be distributed in accordance with the Death
of owner provisions below. If we do not receive a request to
apply the death benefit proceeds to an annuity option, we will make a
single sum distribution. We will generally pay death single lump sum
payments benefit proceeds within 7 days after our Customer Service
Center has received sufficient information to make the payment.
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DEATH PROCEEDS
If the annuitant is less than AGE 67 at the time of purchase, the
death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the highest contract value (plus subsequent premiums less
subsequent withdrawals) determined on every contract
anniversary on or before your death beginning with the 8th
anniversary and ending on the last anniversary prior to you
attaining age 76.
If the annuitant is BETWEEN THE AGES OF 67 THROUGH 75 at the time of
purchase, the death benefit is the greatest of:
(1)the contract value;
(2)the total premium payments made under the Contract after
subtracting any withdrawals;
(3)the contract value (plus subsequent premiums less subsequent
withdrawals) determined on the 8th contract anniversary but on
or before your death.
If the annuitant is AGE 76 OR OLDER at the time of purchase, the
death benefit is the contract value.
Note: In all cases described above, amounts could be reduced by
premium taxes owed and withdrawals not previously deducted.
The beneficiary may, choose an annuity payment option only during the
60-day period beginning with the date we receive acceptable due proof
of death. The beneficiary may elect to have a single lump payment
or choose one of the annuity options.
The entire death proceeds must be paid within five (5) years of the
date of death unless:
(1) the beneficiary elects to have the death proceeds:
(a)payable under a payment plan over the life of the
beneficiary or over a period not extending beyond the life
expectancy of the beneficiary; and
(b)payable beginning within one year of the date of death; or
(2) if the beneficiary is the deceased owner's spouse, the
beneficiary may elect to become the owner of the Contract and
the Contract will continue in effect.
DEATH OF THE ANNUITANT
(1) If the annuitant dies prior to the annuity start date, we will
pay the death proceeds as provided above.
(2) If the annuitant dies after the annuity start date but before
all of the proceeds payable under the Contract have been
distributed, the Company will pay the remaining proceeds to
the beneficiary(ies) according to the terms of the
supplementary contract.
DEATH OF OWNER
(1) If any owner of this Contract dies before the annuity start
date, the following applies:
(a) If the new owner is the deceased owner's spouse, this
Contract will continue and, if the deceased owner was also
the annuitant, the deceased owner's spouse will also be
the annuitant.
(b) If the new owner is someone other than the deceased owner's
spouse, the entire interest in the Contract must be
distributed to the new owner:
(i) within 5 years of the deceased owner's death
or
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(ii) over the life of the new owner or over a period not extending
beyond the life expectancy of the new owner, as long as
payments begin within one year of the deceased owner's death.
If the deceased owner was the annuitant, the new owner will be the
joint owner, if any, or if there is no joint owner, the beneficiary.
If the deceased owner was not the annuitant, the new owner will be
the joint owner, if any, or if there is no joint owner, the
contingent owner named under the Contract. If there is no surviving
joint or contingent owner, the new owner will be the deceased owner's
estate.
If the new owner under (b) above dies after the deceased owner but
before the entire interest has been distributed, any remaining
distributions will be to the new owner's estate.
(2) If the deceased owner was also the annuitant, the death of
owner provision shall apply in lieu of any provision providing
payment under the Contract when the annuitant dies before the
annuity start date.
(3) If any owner dies on or after the annuity start date, but
before all proceeds payable under this Contract have been
distributed, the Company will continue payments to the
annuitant (or, if the deceased owner was the annuitant, to the
beneficiary) under the payment method in effect at the time of
the deceased owner's death.
(4) For purposes of this section, if any owner of this Contract is
not an individual, the death or change of any annuitant shall
be treated as the death of an owner.
TRUST BENEFICIARY
If a trust is named as a beneficiary but we lack proof of the
existence of the trust at the time proceeds are to be paid to the
beneficiary, that beneficiary's interest will pass to any other
beneficiaries according to their respective interests (or to the
annuitant's estate or the annuitant's legal successors, if there are
no other beneficiaries) unless proof of the existence of such trust
is provided within six months of the annuitant's death.
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CHARGES AND FEES
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We deduct the charges described below to cover our cost and expenses,
services provided and risks assumed under the Contracts. We incur
certain costs and expenses for distributing and administrating the
Contracts, for paying the benefits payable under the Contracts and
for bearing various risks associated with the Contracts. The amount
of a charge will not always correspond to the actual costs
associated. For example, the surrender charge collected may not
fully cover all of the distribution expenses incurred by us with the
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service or benefits provided. In the event there are any profits
from fees and charges deducted under the Contract, we may use such
profits to finance the distribution of contracts.
SURRENDER CHARGES DEDUCTED FROM THE CONTRACT VALUE
For purposes of determining any applicable surrender charges under
the Contract, Contract value is removed in the following order:
1) earnings (Contract value less premium payments not withdrawn);
2) premium payments in the Contract for more than eight years (these
premium payments are liquidated on a first in, first out basis);
3) additional free amount (which is equal to 10% of the premium payments
in the Contract for less than eight years, fixed at the time of the
first withdrawal in the Contract year, plus 10% of the premium
payments made after the first withdrawal in the Contract year but
before the next Contract anniversary, less any withdrawals in the
same Contract year of premium payments less than eight years old);
and 4) premium payments in the Contract for less than eight years
(these premium payments are removed on a first in, first out basis).
The charges we deduct are:
SURRENDER CHARGE. We will deduct a contingent deferred sales
charge (a "surrender charge") if you surrender your Contract or if
you take a withdrawal in excess of the Free Withdrawal Amount during
the 8-year period from the date we receive and accept a premium
payment. The surrender charge is based on a percentage of each
premium payment. This charge is intended to cover sales expenses
that we have incurred. We may in the future reduce or waive the
surrender charge in certain situations and will never charge more
than the maximum surrender charges. The percentage of premium
payments deducted at the time of surrender or excess withdrawal
depends on the number of complete years that have elapsed since that
premium payment was made. We determine the surrender charge as a
percentage of each premium payment as follows:
COMPLETE YEARS ELAPSED 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8+
SINCE PREMIUM PAYMENT | | | | | | | |
| | | | | | | |
SURRENDER CHARGE 8%| 7%| 6%| 5%| 4%| 3%| 2%| 1%| 0%
FREE WITHDRAWAL AMOUNT. At any time, you may make a withdrawal
without the imposition of a surrender charge, of an amount equal to
the sum of:
o earnings (contract value less unliquidated purchase payments);
o premium payments in the contract for more than eight years, and
o an amount which is equal to 10% of the premium payments in the
contract for less than eight years, fixed at the time of the
first withdrawal in the Contract year, plus 10% of the premium
payment made after the first withdrawal in the contract year
(but before the next contract anniversary, less any
withdrawals in the same contract year of premium payments less
than eight years old).
SURRENDER CHARGE FOR EXCESS WITHDRAWALS. We will deduct a
surrender charge for excess withdrawals. We consider a withdrawal to
be an "excess withdrawal" when the amount you withdraw in any
contract year exceeds the free withdrawal amount. Where you are
receiving systematic withdrawals, any combination of regular
withdrawals taken and any systematic withdrawals expected to be
received in a contract year will be included in determining the
amount of the excess withdrawal. Such a withdrawal will be
considered a partial surrender of the contract and we will impose a
surrender charge and any associated premium tax.
PREMIUM TAXES. We may make a charge for state and local premium
taxes depending on the contract owner's state of residence. The tax
can range from 0% to 3.5% of the premium. We have the right to change
this amount to conform with changes in the law or if the contract
owner changes state of residence.
We deduct the premium tax from your contract value on the annuity
start date. However, some jurisdictions impose a premium tax at the
time that initial and additional premiums are paid, regardless of
when the annuity payments begin. In those states we may defer
collection of the premium taxes from your contract value and deduct
it on surrender of the Contract, on excess withdrawals or on the
annuity start date.
ADMINISTRATIVE CHARGE. We deduct an annual administrative charge
on each Contract anniversary, or if you surrender your Contract prior
to a Contract anniversary, at the time we determine the cash
surrender value payable to you. The amount deducted is $30 per
Contract. We deduct the annual administrative charge proportionately
from all subaccounts in which you are invested.
TRANSFER CHARGE. You may make 12 free transfers each contract
year. We have the right, however, to assess will assess a transfer
charge equal to the lesser of 2% of the Contract value transferred
or an amount not greater than $25 for each transfer after the
twelfth transfer in a contract year. If such a charge is assessed,
we would deduct the
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charge as noted in "Charges Deducted from the Contract
Value" above. The charge will not apply to any transfers due to the
election of dollar cost averaging, automatic rebalancing and
transfers we make to and from any subaccount specially designated by
the Company for such purpose. However, we reserve the right to treat
multiple transfers in a single day, auto rebalancing and dollar cost
averaging as standard transfers when determining annual transfers and
imposing the transfer charge.
CHARGES DEDUCTED FROM THE SUBACCOUNTS
MORTALITY AND EXPENSE RISK CHARGE. We deduct on each
business day a Mortality and Expense Risk Charge which is equal, on
an annual basis, to 1.25% of the average daily net asset value of the
Separate Account. The charge is deducted on each business day at the
rate of .003446% for each day since the previous business day.
maintenance costs, administrative costs, mailing costs, data
processing costs, legal fees, accounting fees, filing fees and the
costs of other services may exceed the amount recovered from the
annual administrative charge.
If the Mortality and Expense Risk Charge is insufficient to cover
the actual costs, the loss will be borne by the Company. Conversely,
if the amount deducted proves more than sufficient, the excess will
be a profit to the Company.
The Mortality and Expense Risk Charge is guaranteed by the Company
and cannot be increased.
ASSET-BASED ADMINISTRATIVE CHARGE. We will deduct a daily charge
from the assets in each subaccount, to compensate us for a portion of
the administrative expenses under the Contract. The daily charge is
at a rate of .000411% (equivalent to an annual rate of 0.15%) on the
assets in each subaccount.
TRUST EXPENSES
There are fees and charges deducted from each investment portfolio of
the Trusts. Please read the respective Trust prospectus for details.
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THE ANNUITY OPTIONS
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SELECTING THE ANNUITY START DATE
You, as the owner, select an annuity start date at the date of
purchase and may elect a new annuity start date at any time by making
a written request to the Company at its Customer Service Center at
least seven days prior to the annuity start date.
The annuity start date must be at least 1 year from the contract date
but before the month immediately following the annuitant's 90th
birthday, or 10 years from the contract date, if later. If, on the
annuity start date, a surrender charge remains, the elected annuity
option must include a period certain of at least 5 years.
If you do not select an annuity start date, it will automatically
begin in the month following the annuitant's 90th birthday, or 10
years from the contract date, if later.
SELECTING A PAYMENT PLAN
On the annuity start date, we will pay the maturity proceeds of the
Contract to the annuitant, if living, subject to the terms of the
Contract. If payment plan A, Option 1; plan B; or plan C are
elected, the maturity proceeds will be the Contract value less any
applicable taxes not previously
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deducted. (See "Fixed Payment plans"
below.) If the maturity proceeds are paid in cash or by any other
method not listed above, the maturity proceeds equal the Contract
value less:
(1)any applicable taxes not previously deducted; less
(2)the withdrawal charge, if any; less
(3)the annual contract administrative charge, if any.
The election of a payment plan must be made in writing at least seven
(7) days prior to the annuity start date. If no election is made, an
automatic option of monthly income for a minimum of 120 months and as
long thereafter as the annuitant lives will be applied.
If the annuity start date occurs when the annuitant is at an advanced
age, such as over age 85, it is possible that the Contract will not
be considered an annuity for federal tax purposes. See "Federal Tax
Considerations" and the Statement of Additional Information. For a
Contract purchased in connection with a qualified plan, other than a
Roth IRA, distributions must commence not later than April 1st of the
calendar year following the calendar year in which you attain age 70
1/2, or, in some cases, retire. Distributions may be made through
annuitization or withdrawals. Consult your tax advisor.
The owner chooses a plan by sending a written request to the Customer
Service Center. The Company will send the owner the proper forms to
complete. The request, when recorded at the Company's Customer Service
Center, will be in effect from the date it was signed, subject to any
payments or actions taken by the Company before recording. If for any
reason, the person named to receive payments (the payee) is changed,
the change will go into effect when the request is recorded at the
Company's Customer Service Center, subject to payments or at times
taken by the Company before recording.
FIXED PAYMENT PLANS
After the first Contract year, the maturity proceeds may be applied
under one or more of the payment plans described below. Payment plans
not specified below may be available only if they are approved
both by the Company and the owner.
No withdrawal charge is deducted if Plan A-Option 1; Plan B or Plan C
is elected.
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A plan is available only if the periodic payment is $100 or more. If
the payee is other than a natural person (such as a corporation), a
plan will be available only with our consent.
A supplementary contract will be issued in exchange for the Contract
when payment is made under a payment plan. The effective date of a
payment plan shall be a date upon which the we and the owner mutually
agree.
The minimum interest rate for plans A and B is 3.0% a year,
compounded yearly. The minimum rates for Plan C were based on the
1983a Annuity Table at 3.0% interest, compounded yearly. The Company
may pay a higher rate at its discretion.
|-------------------------------------------------------------------------|
| PLAN A. INTEREST |
| Option 1 The contract value less any applicable taxes |
| not previously deducted may be left on deposit |
| with us for five (5) years. Fixed payments |
| will be made monthly, quarterly, semi- |
| annually, or annually. We do not allow a |
| monthly payment if the contract value |
| applied under this option is less than |
| $100,000. The proceeds may not be withdrawn |
| until the end of the five (5) year period. |
| |
| Option 2 The cash surrender value may be left on deposit |
| with the Company for a specified period. |
| Interest will be paid annually. All or part of |
| the Proceeds may be withdrawn at any time. |
|-------------------------------------------------------------------------|
| PLAN B. FIXED PERIOD |
| The contract value less any applicable taxes |
| not previously deducted will be paid until the |
| proceeds, plus interest, are paid in full. |
| Payments may be paid annually or monthly. |
| The payment period cannot be more than |
| thirty (30) years nor less than five (5) |
| years. The Contract provides for a table of |
| minimum annual payments. They are based on |
| the age of the annuitant or the beneficiary. |
|-------------------------------------------------------------------------|
| PLAN C. LIFE INCOME |
| The contract value less any applicable taxes |
| not previously deducted will be paid in monthly |
| or annual payments for as long as the |
| annuitant or beneficiary, whichever is |
| appropriate, lives. The Company has the |
| right to require proof satisfactory to it of |
| the age and sex of such person and proof of |
| continuing survival of such erson. A minimum |
| number of payments may be guaranteed, |
| if desired. The Contract provides for a table |
| of minimum annual payments. They are based on |
| the age of the annuitant or the beneficiary. |
|-------------------------------------------------------------------------|
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OTHER CONTRACT PROVISIONS
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REPORTS TO CONTRACT OWNERS
We will send you a quarterly report within 31 days after the end of
each calendar quarter. The report will show the contract value, cash
surrender value, and the death benefit as of the end of the calendar
quarter. The report will also show the allocation of your contract
value and reflects the amounts deducted from or added to the contract
value since the last report. We will also send you copies of any
shareholder reports of the investment portfolios in which Account A
invests, as well as any other reports, notices or documents we are
required by law to furnish to you.
SUSPENSION OF PAYMENTS OR TRANSFERS
The Company reserves the right to suspend or postpone payments (in
Illinois, for a period not exceeding six months) for withdrawals or
transfers for any period when:
(1)the New York Stock Exchange is closed (other than customary
weekend and holiday closings);
(2)trading on the New York Stock Exchange is restricted;
(3)an emergency exists as a result of which disposal of
securities held in the Separate Account is not reasonably
practicable or it is not reasonably practicable to determine
the value of the Separate Account's net assets;
(4)when the Company's Customer Service Center is closed; or
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(5)during any other period when the Securities and Exchange
Commission, by order, so permits for the protection of owners;
provided that applicable rules and regulations of the
Securities and Exchange Commission will govern as to whether
the conditions described in (2) and (3) exist.
IN CASE OF ERRORS IN YOUR APPLICATION
If an age or sex given in the application or enrollment form is
misstated, the amounts payable or benefits provided by the Contract
shall be those that the premium payment would have bought at the
correct age or sex.
ASSIGNING THE CONTRACT AS COLLATERAL
You may assign a non-qualified Contract as collateral security for a
loan but understand that your rights and any beneficiary's rights may
be subject to the terms of the assignment. An assignment may have
federal tax consequences. You must give us satisfactory written
notice at our Customer Service Center in order to make or release an
assignment. We are not responsible for the validity of any
assignment.
CONTRACT CHANGES APPLICABLE TAX LAW
We have the right to make changes in the Contract to continue to
qualify the Contract as an annuity. You will be given advance notice
of such changes.
FREE LOOK
In most cases, you may cancel your Contract within your 10-day free
look period. We deem the free look period to expire 15 days after we
mail the Contract to you. Some states may require a longer free look
period. To cancel, you need to send your Contract to our Customer
Service Center or to the agent from whom you purchased it. We will
refund the contract value. For purposes of the refund during the
free look period, your contract value includes a refund of any
charges deducted from your contract value. Because of the market
risks associated with investing in the portfolios, the contract value
returned may be greater or less than the premium payment you paid.
Some states require us to return to you the amount of the paid
premium (rather than the contract value) in which case you will not
be subject to investment risk during the free look period. In these
states, your premiums designated for investment in the subaccounts
will be allocated during the free look period to a subaccount
specially designated by the Company for this purpose (currently, the
Smith Barney Money Market subaccount). We may, in our discretion,
require that premiums designated for investment in the subaccounts
from all other states be allocated to the specially designated
subaccount during the free look period. Your Contract is void as of
the day we receive your Contract and your request. We determine your
contract value at the close of business on the day we receive your
written refund request. If you keep your Contract after the free
look period, we will put your money in the subaccount(s) chosen by
you, based on the accumulation unit value next computed for each
subaccount.
GROUP OR SPONSORED ARRANGEMENTS
For certain group or sponsored arrangements, we may reduce any
surrender, administration, and mortality and expense risk charges.
We may also change the minimum initial and additional premium
requirements, or offer an alternative or reduced death benefit. See
"Reduction or Elimination of the Withdrawal Charge" for more details.
SELLING THE CONTRACT
Directed Services, Inc. ("DSI") is distributor of the Contract issued
through Account A. The principal address of DSI is 1745 Dunwoody Drive,
West Chester, PA 19380. DSI enters into sales agreements with
broker-dealers to sell the Contracts through registered representatives
who are licensed to sell securities and variable insurance products.
These broker-dealers are registered with the SEC and are members of
the National Association of Securities Dealers, Inc. The selling
broker-dealer whose registered representative sold the contract
receives a maximum of 7.75% commission. Certain sales agreements may
provide for a combination of a certain percentage of commission at
the time of sale and an annual trail commission (which when combined
could exceed 7.75% of total premium payments).
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- ----------------------------------------------------------------------------
OTHER INFORMATION
- ----------------------------------------------------------------------------
VOTING RIGHTS
We will vote the shares of a Trust owned by Account A according to
your instructions. However, if the Investment Company Act of 1940 or
any related regulations should change, or if interpretations of it or
related regulations should change, and we decide that we are
permitted to vote the shares of a Trust in our own right, we may
decide to do so.
We determine the number of shares that you have in a subaccount by
dividing the Contract's contract value in that subaccount by the net
asset value of one share of the portfolio in which a subaccount
invests. We count fractional votes. We will determine the number of
shares you can instruct us to vote 180 days or less before a Trust's
meeting. We will ask you for voting instructions by mail at least 10
days before the meeting. If we do not receive your instructions in
time, we will vote the shares in the same proportion as the
instructions received from all Contracts in that subaccount. We will
also vote shares we hold in Account A which are not attributable to
contract owners in the same proportion.
YEAR 2000 PROBLEM
Like other business organizations and individuals around the world,
Equitable Life and Account A could be adversely affected if the
computer systems doing the accounts processing or on which Equitable
Life and/or Account A relies do not properly process and calculate
date-related information related to the end of the year 1999. This
is commonly known as the Year 2000 (or Y2K) Problem. Equitable Life
is taking steps that it believes are reasonably designed to address
the Year 2000 Problem with respect to the computer systems that it
uses and to obtain satisfactory assurances that comparable steps are
being taken by its and Account A's major service providers. At this
time, however, we cannot guarantee that these steps will be
sufficient to avoid any adverse impact on Equitable Life and Account
A.
STATE REGULATION
We are regulated by the Insurance Department of the State of Iowa.
We are also subject to the insurance laws and regulations of all
jurisdictions where we do business. The variable Contract offered by
this prospectus has been approved where required by those
jurisdictions. We are required to submit annual statements of our
operations, including financial statements, to the Insurance
Departments of the various jurisdictions in which we do business to
determine solvency and compliance with state insurance laws and
regulations.
LEGAL PROCEEDINGS
We, like other insurance companies, may be involved in lawsuits,
including class action lawsuits. In some class action and other
lawsuits involving insurers, substantial damages have been sought
and/or material settlement payments have been made. We believe that
currently there are no pending or threatened lawsuits that are
reasonably likely to have a material adverse impact on the Company or
Account A.
LEGAL MATTERS
The legal validity of the Contracts was passed on by James Mumford,
Esquire, Executive Vice President, General Counsel and Secretary of
Equitable Life Insurance Company of Iowa. Sutherland Asbill &
Brennan LLP of Washington, D.C. has provided advice on certain
matters relating to federal securities laws.
EXPERTS
The audited financial statements of Equitable Life Insurance Company
of Iowa and Account A appearing or incorporated by reference in the
Statement of Additional Information and Registration Statement have
been audited by Ernst & Young LLP, independent auditors, as set forth
in their reports thereon appearing or incorporated by reference in
the Statement of Additional Information and in the Registration
Statement and
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are included or incorporated by reference in reliance
upon such reports given upon the authority of such firm as experts in
accounting and auditing.
[Shaded Section Header]
- ----------------------------------------------------------------------------
FEDERAL TAX CONSIDERATIONS
- ----------------------------------------------------------------------------
The following summary provides a general description of the federal
income tax considerations associated with this Contract and does not
purport to be complete or to cover all tax situations. This
discussion is not intended as tax advice. You should consult your
counsel or other competent tax advisers for more complete
information. This discussion is based upon our understanding of the
present federal income tax laws. We do not make any representations
as to the likelihood of continuation of the present federal income
tax laws or as to how they may be interpreted by the IRS.
TYPES OF CONTRACTS: NON-QUALIFIED OR QUALIFIED
The Contract may be purchased on a non-tax-qualified basis or
purchased on a tax-qualified basis. Qualified Contracts are designed
for use by individuals whom premium payments are comprised solely of
proceeds from and/or contributions under retirement plans that are
intended to qualify as plans entitled to special income tax treatment
under Sections 401(a), 403(b), 408, or 408A of the Code. The
ultimate effect of federal income taxes on the amounts held under a
Contract, or annuity payments, depends on the type of retirement
plan, on the tax and employment status of the individual concerned,
and on our tax status. In addition, certain requirements must be
satisfied in purchasing a qualified Contract with proceeds from a tax-
qualified plan and receiving distributions from a qualified Contract
in order to continue receiving favorable tax treatment. Some
retirement plans are subject to distribution and other requirements
that are not incorporated into our Contract administration
procedures. Contract owners, participants and beneficiaries are
responsible for determining that contributions, distributions and
other transactions with respect to the Contract comply with
applicable law. Therefore, you should seek competent legal and tax
advice regarding the suitability of a Contract for your particular
situation. The following discussion assumes that qualified Contracts
are purchased with proceeds from and/or contributions under
retirement plans that qualify for the intended special federal income
tax treatment.
TAX STATUS OF THE CONTRACTS
DIVERSIFICATION REQUIREMENTS. The Code requires that the
investments of a variable account be "adequately diversified" in
order for the Contracts to be treated as annuity contracts for
federal income tax purposes. It is intended that Account A, through
the subaccounts, will satisfy these diversification requirements.
In certain circumstances, owners of variable annuity contracts have
been considered for federal income tax purposes to be the owners of
the assets of the separate account supporting their contracts due to
their ability to exercise investment control over those assets. When
this is the case, the contract owners have been currently taxed on
income and gains attributable to the separate account assets. There
is little guidance in this area, and some features of the Contracts,
such as the flexibility of a contract owner to allocate premium
payments and transfer contract values, have not been explicitly
addressed in published rulings. While we believe that the Contracts
do not give contract owners investment control over Account A assets,
we reserve the right to modify the Contracts as necessary to prevent
a contract owner from being treated as the owner of the Account B
assets supporting the Contract.
REQUIRED DISTRIBUTIONS. In order to be treated as an annuity
contract for federal income tax purposes, the Code requires any non-
qualified Contract to contain certain provisions specifying how your
interest in the Contract will be distributed in the event of your
death. The non-qualified Contracts contain provisions that are
intended to comply with these Code requirements, although no
regulations interpreting these requirements have yet been issued. We
intend to review such provisions and modify them if necessary to
assure that they comply with the applicable requirements when such
requirements are clarified by regulation or otherwise.
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Other rules may apply to Qualified Contracts.
The following discussion assumes that the Contracts will qualify as
annuity contracts for federal income tax purposes.
TAX TREATMENT OF ANNUITIES
IN GENERAL. We believe that if you are a natural person you will
generally not be taxed on increases in the value of a Contract until
a distribution occurs or until annuity payments begin. (For these
purposes, the agreement to assign or pledge any portion of the
contract value, and, in the case of a qualified Contract, any portion
of an interest in the qualified plan, generally will be treated as a
distribution.)
TAXATION OF NON-QUALIFIED CONTRACTS
NON-NATURAL PERSON. The owner of any annuity contract who is not
a natural person generally must include in income any increase in the
excess of the contract value over the "investment in the contract"
(generally, the premiums or other consideration paid for the
contract) during the taxable year. There are some exceptions to this
rule and a prospective contract owner that is not a natural person
may wish to discuss these with a tax adviser. The following
discussion generally applies to Contracts owned by natural persons.
WITHDRAWALS. When a withdrawal from a non-qualified Contract
occurs, the amount received will be treated as ordinary income
subject to tax up to an amount equal to the excess (if any) of the
contract value (unreduced by the amount of any surrender charge)
immediately before the distribution over the contract owner's
investment in the Contract at that time.
In the case of a surrender under a non-qualified Contract, the amount
received generally will be taxable only to the extent it exceeds the
contract owner's investment in the Contract.
PENALTY TAX ON CERTAIN WITHDRAWALS. In the case of a distribution
from a non-qualified Contract, there may be imposed a federal tax
penalty equal to 10% of the amount treated as income. In general,
however, there is no penalty on distributions:
o made on or after the taxpayer reaches age 59 1/2;
o made on or after the death of a contract owner;
o attributable to the taxpayer's becoming disabled; or
o made as part of a series of substantially equal periodic
payments for the life (or life expectancy) of the taxpayer.
Other exceptions may be applicable under certain circumstances and
special rules may be applicable in connection with the exceptions
enumerated above. A tax adviser should be consulted with regard to
exceptions from the penalty tax.
ANNUITY PAYMENTS. Although tax consequences may vary depending on
the payment option elected under an annuity contract, a portion of
each annuity payment is generally not taxed and the remainder is
taxed as ordinary income. The non-taxable portion of an annuity
payment is generally determined in a manner that is designed to allow
you to recover your investment in the Contract ratably on a tax-free
basis over the expected stream of annuity payments, as determined
when annuity payments start. Once your investment in the Contract
has been fully recovered, however, the full amount of each annuity
payment is subject to tax as ordinary income.
TAXATION OF DEATH BENEFIT PROCEEDS. Amounts may be distributed
from a Contract because of your death or the death of the annuitant.
Generally, such amounts are includible in the income of recipient as
follows: (i) if distributed in a lump sum, they are taxed in the
same manner as a surrender of the Contract, or (ii) if distributed
under a payment option, they are taxed in the same way as annuity
payments.
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TRANSFERS, ASSIGNMENTS, OR EXCHANGES, AND ANNUITY DATES OF A
CONTRACT. A transfer or assignment of ownership of a Contract, the
designation of an annuitant, the selection of certain dates for
commencement of the annuity phase, or the exchange of a Contract may
result in certain tax consequences to you that are not discussed
herein. A contract owner contemplating any such transfer, assignment
or exchange, should consult a tax advisor as to the tax consequences.
WITHHOLDING. Annuity distributions are generally subject to
withholding for the recipient's federal income tax liability.
Recipients can generally elect, however, not to have tax withheld
from distributions.
MULTIPLE CONTRACTS. All non-qualified deferred annuity contracts
that are issued by us (or our affiliates) to the same contract owner
during any calendar year are treated as one annuity contract for
purposes of determining the amount includible in such contract
owner's income when a taxable distribution occurs.
TAXATION OF QUALIFIED CONTRACTS
The Contracts are designed for use with several types of qualified
plans. The tax rules applicable to participants in these qualified
plans vary according to the type of plan and the terms and
contributions of the plan itself. Special favorable tax treatment
may be available for certain types of contributions and
distributions. Adverse tax consequences may result from:
contributions in excess of specified limits; distributions before age
59 1/2 (subject to certain exceptions); distributions that do not
conform to specified commencement and minimum distribution rules; and
in other specified circumstances. Therefore, no attempt is made to
provide more than general information about the use of the Contracts
with the various types of qualified retirement plans. Contract
owners, annuitants, and beneficiaries are cautioned that the rights
of any person to any benefits under these qualified retirement plans
may be subject to the terms and conditions of the plans themselves,
regardless of the terms and conditions of the Contract, but we shall
not be bound by the terms and conditions of such plans to the extent
such terms contradict the Contract, unless the Company consents.
DISTRIBUTIONS. Annuity payments are generally taxed in the same
manner as under a non-qualified Contract. When a withdrawal from a
qualified Contract occurs, a pro rata portion of the amount received
is taxable, generally based on the ratio of the contract owner's
investment in the Contract (generally, the premiums or other
consideration paid for the Contract) to the participant's total
accrued benefit balance under the retirement plan. For Qualified
Contracts, the investment in the Contract can be zero. For Roth
IRAs, distributions are generally not taxed, except as described
below.
For qualified plans under Section 401(a) and 403(b), the Code
requires that distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) (i) reaches age 70 1/2
or (ii) retires, and must be made in a specified form or manner. If
the plan participant is a "5 percent owner" (as defined in the Code),
distributions generally must begin no later than April 1 of the
calendar year following the calendar year in which the contract owner
(or plan participant) reaches age 70 1/2. For IRAs described in
Section 408, distributions generally must commence no later than the
later of April 1 of the calendar year following the calendar year in
which the contract owner (or plan participant) reaches age 70 1/2.
Roth IRAs under Section 408A do not require distributions at any time
before the contract owner's death.
WITHHOLDING. Distributions from certain qualified plans generally
are subject to withholding for the contract owner's federal income
tax liability. The withholding rates vary according to the type of
distribution and the contract owner's tax status. The contract owner
may be provided the opportunity to elect not to have tax withheld
from distributions. "Eligible rollover distributions" from section
401(a) plans and section 403(b) tax-sheltered annuities are subject
to a mandatory federal income tax withholding of 20%. An eligible
rollover distribution is the taxable portion of any distribution from
such a plan, except certain distributions that are required by the
Code or distributions in a specified annuity form. The 20%
withholding does not apply, however, if the contract owner chooses a
"direct rollover" from the plan to another tax-qualified plan or IRA.
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Brief descriptions of the various types of qualified retirement plans
in connection with a Contract follow. We will endorse the Contract
as necessary to conform it to the requirements of such plan.
REQUIRED DISTRIBUTIONS UPON CONTRACT OWNER'S DEATH
We will not allow any payment of benefits provided under the Contract
which do not satisfy the requirements of Section 72(s) of the Code.
If an owner of a Non-Qualified Contract dies before the annuity start
date, the death benefit payable to the beneficiary will be
distributed as follows: (a) the death benefit must be completely
distributed within 5 years of the contract owner's date of death; or
(b) the beneficiary may elect, within the 1-year period after the
contract owner's date of death, to receive the death benefit in the
form of an annuity from us, provided that (i) such annuity is
distributed in substantially equal installments over the life of such
beneficiary or over a period not extending beyond the life expectancy
of such beneficiary; and (ii) such distributions begin not later than
1 year after the contract owner's date of death.
Notwithstanding (a) and (b) above, if the sole contract owner's
beneficiary is the deceased owner's surviving spouse, then such
spouse may elect, to continue the Contract under the same terms as
before the contract owner's death. Upon receipt of such election
from the spouse at our Customer Service Center: (1) all rights of
the spouse as contract owner's beneficiary under the Contract in
effect prior to such election will cease; (2) the spouse will become
the owner of the Contract and will also be treated as the contingent
annuitant, if none has been named and only if the deceased owner was
the annuitant; and (3) all rights and privileges granted by the
Contract or allowed by Golden American will belong to the spouse as
contract owner of the Contract. This election will be deemed to have
been made by the spouse if such spouse makes a premium payment to the
Contract or fails to make a timely election as described in this
paragraph. If the owner's beneficiary is a nonspouse, the
distribution provisions described in subparagraphs (a) and (b) above,
will apply even if the annuitant and/or contingent annuitant are
alive at the time of the contract owner's death.
If we do not receive an election from a nonspouse owner's beneficiary
within the 1-year period after the contract owner's date of death,
then we will pay the death benefit to the owner's beneficiary in a
cash payment within five years from date of death. We will determine
the death benefit as of the date we receive proof of death. We will
make payment of the proceeds on or before the end of the 5-year
period starting on the owner's date of death. Such cash payment will
be in full settlement of all our liability under the Contract.
If the annuitant dies after the annuity start date, we will continue
to distribute any benefit payable at least as rapidly as under the
annuity option then in effect.
If the contract owner dies after the annuity start date, we will
continue to distribute any benefit payable at least as rapidly as
under the annuity option then in effect. All of the contract owner's
rights granted under the Contract or allowed by us will pass to the
contract owner's beneficiary.
If the Contract has joint owners we will consider the date of death
of the first joint owner as the death of the contract owner and the
surviving joint owner will become the contract owner of the Contract.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Section 401(a) of the Code permits corporate employers to establish
various types of retirement plans for employees, and permits self-
employed individuals to establish these plans for themselves and
their employees. These retirement plans may permit the purchase of
the Contracts to accumulate retirement savings under the plans.
Adverse tax or other legal consequences to the plan, to the
participant, or to both may result if this Contract is assigned or
transferred to any individual as a means to provide benefit payments,
unless the plan complies with all legal requirements applicable to
such benefits before transfer of the Contract. Employers intending
to use the Contract with such plans should seek competent advice.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to
an individual retirement program known as an "Individual Retirement
Annuity" or "IRA." These IRAs are subject to limits on the amount
that can be
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contributed, the deductible amount of the contribution,
the persons who may be eligible, and the time when distributions
commence. Also, distributions from certain other types of qualified
retirement plans may be "rolled over" or transferred on a tax-
deferred basis into an IRA. There are significant restrictions on
rollover or transfer contributions from Savings Incentive Match Plans
(SIMPLE), under which certain employers may provide contributions to
IRAs on behalf of their employees, subject to special restrictions.
Employers may establish Simplified Employee Pension (SEP) Plans to
provide IRA contributions on behalf of their employees. Sales of the
Contract for use with IRAs may be subject to special requirements of
the IRS.
ROTH IRAS
Section 408A of the Code permits certain eligible individuals to
contribute to a Roth IRA. Contributions to a Roth IRA, which are
subject to certain limitations, are not deductible, and must be made
in cash or as a rollover or transfer from another Roth IRA or other
IRA. A rollover from or conversion of an IRA to a Roth IRA may be
subject to tax, and other special rules may apply. Distributions
from a Roth IRA generally are not taxed, except that, once aggregate
distributions exceed contributions to the Roth IRA, income tax and a
10% penalty tax may apply to distributions made (1) before age 59 1/2
(subject to certain exceptions) or (2) during the five taxable years
starting with the year in which the first contribution is made to the
Roth IRA.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code allows employees of certain Section
501(c)(3) organizations and public schools to exclude from their
gross income the premium payments made, within certain limits, on a
Contract that will provide an annuity for the employee's retirement.
These premium payments may be subject to FICA (social security) tax.
Distributions of (1) salary reduction contributions made in years
beginning after December 31, 1988; (2) earnings on those
contributions; and (3) earnings on amounts held as of the last year
beginning before January 1, 1989, are not allowed prior to age 59
1/2, separation from service, death or disability. Salary reduction
contributions may also be distributed upon hardship, but would
generally be subject to penalties.
ENHANCED DEATH BENEFIT
The Contract includes an Enhanced Death Benefit that in some cases may
exceed the greater of the premium payments or the account value. The
Enhanced Death Benefit could be characterized as an incidental benefit,
the amount of which is limited in any Code section 401(a) pension or
profit - sharing Plan or Code section 402(b) tax-sheltered annuity.
Because the Enhanced Death Benefit may exceed this limitation, emplyers
using the Contract in connection with such plans should consult their
tax adviser. Further, the Internal Revenue Service has not reviewed
the Contract for qualifications as an IRA or Roth IRA, and has not
addressed in a ruling of general applicability wheter a death benefit
provision in the Contract comports with IRA qualification requirements.
OTHER TAX CONSEQUENCES
As noted above, the foregoing comments about the federal tax
consequences under the Contracts are not exhaustive, and special
rules are provided with respect to other tax situations not discussed
in this prospectus. Further, the federal income tax consequences
discussed herein reflect our understanding of current law, and the
law may change. Federal estate and state and local estate,
inheritance and other tax consequences of ownership or receipt of
distributions under a Contract depend on the individual circumstances
of each contract owner or recipient of the distribution. A competent
tax adviser should be consulted for further information.
POSSIBLE CHANGES IN TAXATION
Although the likelihood of legislative change is uncertain, there is
always the possibility that the tax treatment of the Contracts could
change by legislation or other means. It is also possible that any
change could be retroactive (that is, effective before the date of
the change). A tax adviser should be consulted with respect to
legislative developments and their effect on the Contract.
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[Shaded Section Header]
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STATEMENT OF ADDITIONAL INFORMATION
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TABLE OF CONTENTS
ITEM PAGE
Company................................................ 1
Experts................................................ 1
Legal Opinions......................................... 1
Distributor............................................ 1
Yield Calculations for the Liquid Asset Subaccounts.... 1
Performance Information................................ 2
Annuity Provisions..................................... 5
Financial Statements................................... 5
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PLEASE TEAR OFF, COMPLETE AND RETURN THE FORM BELOW TO ORDER A FREE
STATEMENT OF ADDITIONAL INFORMATION FOR THE CONTRACTS OFFERED UNDER
THE PROSPECTUS. ADDRESS THE FORM TO OUR CUSTOMER SERVICE CENTER;
THE ADDRESS IS SHOWN ON THE COVER.
- - --------------------------------------------------------------------------
PLEASE SEND ME A FREE COPY OF THE STATEMENT OF ADDITIONAL INFORMATION
FOR SEPARATE ACCOUNT A.
Please Print or Type:
--------------------------------------------------
NAME
--------------------------------------------------
SOCIAL SECURITY NUMBER
--------------------------------------------------
STREET ADDRESS
--------------------------------------------------
CITY, STATE, ZIP
PrimElite 5/9
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APPENDIX A
CONDENSED FINANCIAL INFORMATION
The following tables give (1) the accumulation unit value ("AUV"),
(2) the total number of accumulation units, and (3) the total
accumulation unit value, for each subaccount of Equitable of Iowa
Separate Account A available under the Contract for the indicated
periods. The date on which the subaccount became available to
investors and the starting accumulation unit value are indicated on
the last row of each table.
MID-CAP GROWTH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.43 5,924,179 $132,179 |
| 1997 18.52 4,824,991 89,359 |
| 1996 15.70 2,602,724 40,863 |
| 1995 13.21 759,597 10,034 |
| 1994 10.35 63,781 660 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
RESEARCH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $22.89 148,188,466 $324,775 |
| 1997 18.87 10,840,733 204,520 |
| 1996 15.93 4,845,240 77,175 |
| 1995 13.10 1,255,752 16,447 |
| 1994 9.72 69,177 673 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
A1
<PAGE>
<PAGE>
TOTAL RETURN
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $17.72 12,496,422 $221,408 |
| 1997 16.10 9,244,077 148,852 |
| 1996 13.51 4,354,328 58,835 |
| 1995 12.05 1,312,565 15,822 |
| 1994 9.81 33,106 325 |
| 10/7/94 10.00 -- -- |
|-------------------------------------------------------------|
SMITH BARNEY LARGE CAP VALUE
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $19.24 6,212,301 $119,526 |
| 1997 17.17 4,211,810 74,830 |
| 1996 14.23 1,579,649 22,471 |
| 1995 12.05 295,134 3,555 |
| 4/5/95 10.00 -- -- |
|-------------------------------------------------------------|
SMITH BARNEY INTERNATIONAL EQUITY
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $14.28 2,094,604 $29,904 |
| 1997 13.59 1,734,132 $23,573 |
| 1996 13.42 804,975 $10,805 |
| 1995 11.56 154,388 $ 1,785 |
| 3/27/95 10.00 -- -- |
|-------------------------------------------------------------|
A2
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<PAGE>
SMITH BARNEY HIGH INCOME
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $13.58 1,927,034 $26,177 |
| 1997 13.72 1,544,897 $21,190 |
| 1996 12.22 670,736 $ 8,195 |
| 1995 10.94 72,283 $ 791 |
| 4/28/95 10.00 -- -- |
|-------------------------------------------------------------|
SMITH BARNEY MONEY MARKET
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $11.37 770,256 $8,755 |
| 1997 11.97 1,142,815 $12,539 |
| 1996 10.59 348,906 $ 3,694 |
| 1995 10.23 125,048 $12,280 |
| 5/24/95 10.00 -- -- |
|-------------------------------------------------------------|
APPRECIATION
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $16.47 4,865,719 $80,117 |
| 1997 14.01 2,177,729 $30,521 |
| 1996 11.24 497,034 $ 5,586 |
| 3/25/96 10.00 -- -- |
|-------------------------------------------------------------|
SELECT HIGH GROWTH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $12.33 3,352,071 $41,316 |
| 1997 10.87 1,866,333 $20,288 |
| 2/5/97 10.00 -- -- |
|-------------------------------------------------------------|
A3
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<PAGE>
SELECT GROWTH
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
| 1998 $12.29 3,352,071 $41,316 |
| 1997 11.05 2,767,613 $20,288 |
| 2/5/97 10.00 -- -- |
|-------------------------------------------------------------|
SELECT BALANCED
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
|1998 $11.79 5,194,870 $61,265 |
|1997 11.06 2,668,341 $29,507 |
|2/5/97 10.00 -- -- |
|-------------------------------------------------------------|
SELECT CONSERVATIVE
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
|1998 $11.52 1,417,361 $16,327 |
|1997 11.07 671,234 7,429 |
|2/5/97 10.00 -- -- |
|-------------------------------------------------------------|
SELECT INCOME
[Shaded lines for readability]
|-------------------------------------------------------------|
| TOTAL # OF |
| ACCUMULATION |
| AUV AT UNITS AT TOTAL |
| YEAR END (AND YEAR END (AND AUV AT |
| AT BEGINNING OF AT BEGINNING OF YEAR END |
| FOLLOWING YEAR) FOLLOWING YEAR) (IN THOUSANDS) |
|-------------------------------------------------------------|
|1998 $11.45 644,938 $7,387 |
|1997 11.03 250,841 2,766 |
|2/5/97 10.00 -- -- |
|-------------------------------------------------------------|
A4
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<PAGE>
APPENDIX B
SURRENDER CHARGE FOR EXCESS WITHDRAWALS EXAMPLE
The following assumes you made an initial premium payment of $25,000 and
additional premium payments of $25,000 in each of the second and third
contract years, for total premium payments under the Contract of $75,000.
It also assumes a withdrawal at the beginning of the fifth contract year
of 30% of the contract year of 30% of the contract value of $90,000.
In this example, $22,500 (sum of $15,000 earnings and $75,000 * .10) is
the maximum free withdrawal amount that you may withdraw during the contract
year without a surrender charge. The total withdrawal would be $27,000
($90,000 * .30). Therefore, $4,500 ($27,000 - $22,500) is considered an
excess withdrawal of a part of the initial premium payment of $25,000 and
would be subject to a 4% surrender charge of $180 ($4,500 * .04).
B1
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<PAGE>
EXPLANATORY NOTE
STATEMENT OF ADDITIONAL INFORMATION
FOR EQUI-SELECT AND PRIMELITE
<PAGE>
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
INDIVIDUAL FLEXIBLE PURCHASE PAYMENT DEFERRED
VARIABLE AND FIXED ANNUITY CONTRACTS
ISSUED BY
EQUITABLE LIFE INSURANCE COMPANY OF IOWA SEPARATE ACCOUNT A
AND
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
This is not a prospectus. This Statement of Additional Information
should be read in conjunction with the Prospectus dated May 1, 1999,
for the Individual Flexible Purchase Payment Deferred Variable and
Fixed Annuity Contracts which are referred to herein.
The Prospectus concisely sets forth information that a prospective
investor ought to know before investing. For a copy of the
Prospectus call or write the Company at: P.O. Box 2700, West
Chester, Pennsylvania 19380, (800) 344-6864.
DATE OF PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION:
MAY 1, 1999.
<PAGE>
<PAGE>
TABLE OF CONTENTS
ITEM PAGE
Company.................................................. 1
Experts.................................................. 1
Legal Opinions........................................... 1
Distributor.............................................. 1
Yield Calculations For Money Market Subaccounts.......... 1
Performance Information.................................. 2
Annuity Provisions....................................... 5
Financial Statements..................................... 5
i
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<PAGE>
COMPANY
Information regarding Equitable Life Insurance Company of Iowa (the
"Company") and its ownership is contained in the Prospectus.
EXPERTS
The financial statements and schedules of the Company as of December
31, 1998 and for each of the three years in the period ended December
31, 1998, and the Statement of Assets and Liabilities of Equitable
Life Insurance Company of Iowa Separate Account A as of December 31,
1998, and the related statements of operations for the year then
ended and changes in net assets for each of the two years for the
period then ended have been audited by Ernst & Young LLP, independent
auditors, as set forth in their reports appearing elsewhere herein,
and are included in reliance upon such reports given upon the
authority of such firm as experts in accounting and auditing.
LEGAL OPINIONS
The legal validity of the Contract described in the prospectus and
herein has been passed upon by James R. Mumford, Esquire, General
Counsel and Secretary of the Company. The law firm of Sutherland
Asbill & Brennan LLP, of Washington, D.C. has provided advice on
certain matters relating to Federal Securities laws.
DISTRIBUTOR
The offering of contracts under the prospectus associated with this
Statement of Additional Information is continuous. Directed Services,
Inc., an affiliate of the Company, acts as the principal underwriter
(as defined in the Securities Act of 1933 and the Investment Company
Act of 1940, as amended) of the variable insurance products issued by
Company. Prior to Directed Services, Inc. becoming distributor, the
variable insurance products were distributed by ING Funds
Distributors, Inc. (formerly, Equitable Securities Network, Inc.),
which is also an affiliate of the company. For the years ended 1998,
1997 and 1996 commissions paid by the Company to the broker/dealers
who sold contracts aggregated $36,579,786, $45,601,541 and
$25,432,693, respectively. Directed Services, Inc. is located at
1475 Dunwoody Drive, West Chester, Pennsylvania 19380-1478.
YIELD CALCULATION FOR MONEY MARKET SUBACCOUNTS
The Money Market Subaccounts of the Separate Account will calculate
their current yield based upon the seven days ended on the date of
calculation. For the seven calendar days ended December 31, 1998,
the annualized yield and effective yield for the Money Market
Subaccounts were 3.25% and 3.30%, respectively. For the seven
calendar days ended December 31, 1998, the annualized yield and
effective yield for the Smith Barney Money Market Subaccount were
3.25% and 3.30%, respectively.
The current yields of the Money Market Subaccounts are computed by
determining the net change (exclusive of capital changes) in the
value of a hypothetical pre-existing Owner account having a balance
of one Accumulation Unit of the Subaccount at the beginning of the
period, subtracting the Mortality and Expense Risk Charge, the
Administrative Charge and the Annual Contract Maintenance Charge,
dividing the difference by the value of the account at the beginning
of the same period to obtain the base period return and multiplying
the result by (365/7).
The Money Market Subaccounts compute their effective compound yield
according to the method prescribed by the Securities and Exchange
Commission. The effective yield reflects the reinvestment of net
income earned daily on Money Market Subaccounts assets.
Net investment income for yield quotation purposes will not include
either realized capital gains and losses or unrealized appreciation
and depreciation, whether reinvested or not.
The yields quoted should not be considered a representation of the
yield of the Money Market Subaccounts in the future since the yield
is not fixed. Actual yields will depend not only on the type,
quality and maturities of the investments held by the Money Market
Subaccounts and changes in the interest rates on such investments,
but also on changes in the Money Market Subaccounts' expenses during
the period.
Yield information may be useful in reviewing the performance of the
Money Market Subaccounts and for providing a basis for comparison
with other investment alternatives. However, the Money Market
Subaccounts' yield fluctuates, unlike bank deposits or other
investments which typically pay a fixed yield for a stated period of
time. The yield information does not reflect the deduction of any
applicable Withdrawal Charge at the time of the surrender. (See
"Charges and Deductions - Deduction for Withdrawal Charge (Sales
Load)" in the Prospectus.)
PERFORMANCE INFORMATION
From time to time, the Company may advertise performance data as
described in the Prospectus. Any such advertisement will include
average annual total return figures for the time periods indicated in
the advertisement. Such total return figures will reflect the
deduction of a 1.25% Mortality and Expense Risk Charge, a 0.15%
Administrative Charge, the expenses for the underlying Portfolio
being advertised and any applicable Annual Contract Maintenance
Charge and Withdrawal Charges.
SEC STANDARD AVERAGE ANNUAL TOTAL RETURN
The hypothetical value of a Contract purchased for the time periods
described in the advertisement will be determined by using the actual
Accumulation Unit values for an initial $1,000 purchase payment, and
deducting any applicable Annual Contract Maintenance Charge and any
applicable Withdrawal Charge to arrive at the ending hypothetical
value. The average annual total return is then determined by
computing the fixed interest rate that a $1,000 purchase payment
would have to earn annually, compounded annually, to grow to the
hypothetical value at the end of the time periods described. The
formula used in these calculations is
P(1+T)^(n)=ERV
P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = ending redeemable value at the end of the time periods
used (or fractional portion thereof) of a hypothetical
$1,000 payment made at the beginning of the time periods
used.
SEC STANDARD 30-DAY YIELD FOR NON-MONEY MARKET SUBACCOUNTS
Quotations of yield for the remaining subaccounts will be based on
all investment income a subaccount earned during a particular 30-day
period, less expenses accrued during the period ("net investment
income"), and will be computed by dividing net investment income by
the value of an accumulation unit on the last day of the period,
according to the following formula:
YIELD = 2 [ ( a - b +1)^6 - 1]
-----
cd
Where: [a] equals the net investment income earned during the
period by the investment portfolio attributable to
shares owned by a subaccount
[b] equals the expenses accrued for the period (net of
reimbursements)
[c] equals the average daily number of units
outstanding during the period based on the index of
investment experience
[d] equals the value (maximum offering price) per
accumulatio0n unit value on the last day of the period
Yield on subaccounts of Account B is earned from the increase in net
asset value of shares of the Series in which the Subaccount invests
and from dividends declared and paid by the investment portfolio,
which are automatically reinvested in shares of the investment
portfolio.
SEC STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of average annual total return for any subaccount will be
expressed in terms of the average annual compounded rate of return of
a hypothetical investment in a contract over a period of one, five
and 10 years (or, if less, up to the life of the subaccount),
calculated pursuant to the formula:
P(1+T)^(n)=ERV
Where: (1) [P] equals a hypothetical initial premium payment
of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a
hypothetical $1,000 initial premium payment made at the
beginning of the period (or fractional portion thereof)
All total return figures reflect the deduction of the maximum sales
load, the administrative charges, and the mortality and expense risk
charges. The Securities and Exchange Commission (the "SEC") requires
that an assumption be made that the contract owner surrenders the
entire contract at the end of the one, five and 10 year periods (or,
if less, up to the life of the security) for which performance is
required to be calculated. This assumption may not be
2
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<PAGE>
consistent with
the typical contract owner's intentions in purchasing a contract and
may adversely affect returns. Quotations of total return may
simultaneously be shown for other periods, as well as quotations of
total return that do not take into account certain contractual
charges such as sales load.
Average Annual Total Return for the subaccounts presented on a
standardized basis, which includes deductions for the mortality and
expense risk charge, administrative charge and surrender charge for
the year ending December 31, 1998 were as follows:
Returns for Equi-Select Product:
Subaccounts Investing in:
One Year Five Year Inception Inception
Period Ending Period Ending to Ending Date
12/31/98 12/31/98 12/31/98
THE GCG TRUST
Equity Income -1.35% 7.64% 8.18%* 1/25/89
Fully Managed -3.68% 7.19% 7.46%* 1/25/89
Capital Appreciation 3.00% 14.57% 14.12%* 5/4/92
Rising Dividends 4.44% 16.58% 16.39% 10/4/93
All-Growth -0.11% 2.36% 4.40%* 1/25/89
Real Estate -22.76% 9.60% 7.83%* 1/25/89
Hard Assets -38.66% 0.19% 3.59%* 1/25/89
Value Equity -7.96% n/a 15.33% 1/1/95
Limited Maturity n/a n/a -14.69% 8/14/98
Liquid Asset -4.52% n/a 2.18%* 10/7/94
Small Cap 11.19% n/a 13.60% 1/2/96
Global Fixed Income 2.19%* n/a 5.51%* 10/7/94
Growth Opportunities n/a n/a -4.10% 2/18/98
Developing World n/a n/a -30.76% 2/18/98
Research 13.23% n/a 20.91%* 10/7/94
Total Return 1.94%* n/a 13.63%* 10/7/94
Mid-Cap Growth 13.00% n/a 20.31%* 10/7/94
Growth & Income 2.31% n/a 19.47% 4/1/96
Growth 16.95% n/a 17.53%* 4/1/96
Strategic Equity -8.66% n/a 9.92% 10/2/95
WARBURG PINCUS TRUST
International Equity 3.88% n/a 1.04%* 4/1/96
PIMCO VARIABLE INSURANCE TRUST
High Yield Portfolio n/a n/a 1.06%* 5/1/98
StocksPLUS Growth and n/a n/a 16.92%* 5/1/98
Income Portfolio
Returns for PrimElite Product:
Subaccounts Investing in:
Subaccounts Investing in:
One Year Inception Inception
Period Ending to Ending Date
12/31/98 12/31/98
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value Portfolio 0.22% 18.07% 04/05/95
Smith Barney International Equity Portfolio -3.05% 8.62% 03/27/95
Smith Barney High Income Portfolio -9.04% 7.30% 04/28/95
Smith Barney Money Market Portfolio -4.48% 2.01% 05/24/95
GREENWICH SERIES FUND
Appreciation Portfolio 9.41% 17.77% 03/22/96
THE GCG TRUST
Mid-Cap Growth Series 13.02% 20.33% 10/07/94
Research Portfolio 13.26% 20.92% 10/07/94
Total Return Portfolio 1.96%* 13.64%* 10/07/94
3
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<PAGE>
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select High Growth 5.69% 15.61% 02/05/97
Select Growth 4.29% 16.08% 02/05/97
Select Balanced -0.07% 11.36% 02/05/97
Select Conservative -3.39% 7.80% 02/05/97
Select Income -3.97% 6.75% 02/05/97
_________________________
* Total return calculation reflects partial waiver of fees and
expenses.
NON-STANDARD AVERAGE ANNUAL TOTAL RETURN FOR ALL SUBACCOUNTS
Quotations of non-standard average annual total return for any
subaccount will be expressed in terms of the average annual
compounded rate of return of a hypothetical investment in a contract
over a period of one, five and 10 years (or, if less, up to the life
of the subaccount), calculated pursuant to the formula:
[P(1+T)^(n)]=ERV
Where: (1) [P] equals a hypothetical initial premium payment
of $1,000
(2) [T] equals an average annual total return
(3) [n] equals the number of years
(4) [ERV] equals the ending redeemable value of a hypothetical
$1,000 initial premium payment made at the beginning of the
period (or fractional portion thereof) assuming certain
loading and charges are zero.
All total return figures reflect the deduction of the mortality and
expense risk charge and the administrative charges, but not the
deduction of the maximum sales load and the annual contract fee.
Average Annual Total Return for the subaccounts presented on a
standardized basis, which includes deductions for the mortality and
expense risk charge, administrative charge and surrender charge for
the year ending December 31, 1998 were as follows:
Returns for Equi-Select Product:
Subaccounts Investing in:
One Year Five Year Inception Inception
Period Ending Period Ending to Ending Date
12/31/98 12/31/98 12/31/98
THE GCG TRUST
Equity Income 6.75% 8.25% 8.23%* 1/25/89
Fully Managed 4.41% 7.81% 7.51%* 1/25/89
Capital Appreciation 11.10% 15.05% 14.38%* 5/4/92
Rising Dividends 12.54% 17.07% 16.83% 10/4/93
All-Growth 7.99% 3.12% 4.46%* 1/25/89
Real Estate -14.66% 10.17% 8.13%* 1/25/89
Hard Assets -30.57% 1.02% 3.65%* 1/25/89
Value Equity 0.13% n/a 16.34% 1/1/95
Limited Maturity n/a n/a 5.95% 8/14/98
Liquid Asset 3.58% n/a 3.56%* 10/7/94
Small Cap 19.29% n/a 15.43% 1/2/96
Global Fixed Income 10.29% n/a 6.56%* 10/7/94
Growth Opportunities n/a n/a -3.99% 2/18/98
Developing World n/a n/a -30.66% 2/18/98
Research 21.33% n/a 21.59%* 10/7/94
Total Return 2.03% n/a 14.46%* 10/7/94
Mid-Cap Growth 21.09% n/a 21.01%* 10/7/94
Growth & Income 10.41% n/a 21.37% 4/1/96
Growth 25.05% n/a 19.48%* 4/1/96
Strategic Equity -0.57% n/a 11.47% 10/2/95
WARBURG PINCUS TRUST
International Equity 3.88% n/a 0.67%* 4/1/96
4
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<PAGE>
PIMCO VARIABLE INSURANCE TRUST
High Yield Portfolio n/a n/a 1.20%* 5/1/98
StocksPLUS Growth and n/a n/a 17.08%* 5/1/98
Income Portfolio
Returns for PrimElite Product:
Subaccounts Investing in:
One Year Inception Inception
Period Ending to Ending Date
12/31/98 12/31/98
TRAVELERS SERIES FUND INC.
Smith Barney Large Cap Value Portfolio 8.29% 19.11% 04/05/95
Smith Barney International Equity Portfolio 5.02% 9.91% 03/27/95
Smith Barney High Income Portfolio -0.97% 8.68% 04/28/95
Smith Barney Money Market Portfolio 3.60% 3.61% 05/24/95
GREENWICH SERIES FUND
Appreciation Portfolio 17.49% 19.66% 03/22/96
THE GCG TRUST
Mid-Cap Growth Series 21.09% 21.01% 10/07/94
Research Portfolio 21.33% 20.96% 10/07/94
Total Return Portfolio 10.03% 14.46% 10/07/94
SMITH BARNEY CONCERT ALLOCATION SERIES INC.
Select High Growth 13.77% 11.83% 02/05/97
Select Growth 12.97% 12.05% 02/05/97
Select Balanced 8.00% 9.79% 02/05/97
Select Conservative 4.69% 8.06% 02/05/97
Select Income 4.11% 7.54% 02/05/97
_________________________
* Total return calculation reflects partial waiver of fees and
expenses.
Owners should note that the investment results of each Subaccount
will fluctuate over time, and any presentation of the Subaccount's
total return or yield for any period should not be considered as a
representation of what an investment may earn or what an Owner's
total return or yield may be in any future period.
ANNUITY PROVISIONS
Currently, the Company makes available payment plans on a fixed basis
only. (See the Prospectus - "Contract Proceeds - Fixed Payment Plans"
for a description of the Payment Plans.)
FINANCIAL STATEMENTS
The financial statements of the Company included herein should be
considered only as bearing upon the ability of the Company to meet
its obligations under the Contracts.
5
<PAGE>
<PAGE>
FINANCIAL STATEMENTS
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
YEARS ENDED DECEMBER 31, 1998 AND 1997
WITH REPORT OF INDEPENDENT AUDITORS
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1998 AND 1997
TABLE OF CONTENTS
Report of Independent Auditors
Audited Financial Statements
Statement of Net Assets
Statement of Operations
Statements of Changes in Net Assets
Notes to Financial Statements
Report of Independent Auditors
The Board of Directors
Equitable Life Insurance Company of Iowa
We have audited the accompanying statement of net assets of Equitable Life
Insurance Company of Iowa Separate Account A as of December 31, 1998, and the
related statements of operations for the year then ended and the changes in
net assets for each of the two years in the period then ended. These
financial statements are the responsibility of the Account's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned as of December 31,
1998, by correspondence with the transfer agent. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Equitable Life Insurance
Company of Iowa Separate Account A at December 31, 1998, and the results of
its operations for the year then ended and the changes in its net assets for
each of the two years in the period then ended in conformity with generally
accepted accounting principles.
/S/ Ernst & Young LLP
Des Moines, Iowa
February 25, 1999
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS
Investments at net asset value:
The GCG Trust:
Fully Managed Series,
1,051,573 shares (cost - $16,956) $16,015
Rising Dividends Series,
3,016,188 shares (cost - $64,197) 66,385
Small Cap Series,
1,256,316 shares (cost - $17,009) 20,138
Multiple Allocation Series,
75,584 shares (cost - $1,014) 958
Hard Assets Series,
35,479 shares (cost - $403) 341
Real Estate Series,
18,485 shares (cost - $288) 252
All-Growth Series,
26,129 shares (cost - $300) 392
Capital Appreciation Series,
92,558 shares (cost - $1,686) 1,674
Value Equity Series,
15,551 shares (cost - $244) 247
Strategic Equity Series,
13,458 shares (cost - $172) 173
Growth Opportunities Series,
7,551 shares (cost - $70) 73
Developing World Series,
80,879 shares (cost - $672) 596
Mid-Cap Growth Series,
7,340,178 shares (cost - $114,976) 132,856
Research Series,
15,990,914 shares (cost - $283,550) 324,775
Total Return Series,
14,013,106 shares (cost - $201,124) 221,408
Growth & Income Series,
7,477,054 shares (cost - $104,869) 116,791
Value + Growth Series,
5,504,333 shares (cost - $75,544) 85,977
Global Fixed Income Series,
1,109,322 shares (cost - $12,244) 12,391
Limited Maturity Bond Series,
4,126,175 shares (cost - $44,395) 44,068
Liquid Asset Series,
33,498,376 shares (cost - $33,498) 33,498
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF NET ASSETS
DECEMBER 31, 1998
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
COMBINED
____________
<S> <C>
ASSETS
Investments at net asset value:
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Series,
209,444 shares (cost - $2,007) $2,026
PIMCO StocksPLUS Growth and Income Series,
506,644 shares (cost - $5,694) 6,374
Warburg Pincus Trust:
International Equity Portfolio,
3,903,717 shares (cost - $45,895) 42,903
Travelers Series Fund Inc.:
Smith Barney Large Cap Value Portfolio,
5,914,225 shares (cost - $105,411) 119,526
Smith Barney International Equity Portfolio,
2,176,378 shares (cost - $28,446) 29,904
Smith Barney High Income Portfolio,
2,067,682 shares (cost - $26,392) 26,177
Smith Barney Money Market Portfolio,
8,755,176 shares (cost - $8,755) 8,755
Greenwich Street Series Fund Inc.:
Appreciation Portfolio,
3,786,243 shares (cost - $73,041) 80,117
Smith Barney Concert Allocation Series Inc.:
Select High Growth Portfolio,
3,281,618 shares (cost - $37,637) 41,316
Select Growth Portfolio,
5,272,212 shares (cost - $60,300) 65,955
Select Balanced Portfolio,
5,135,268 shares (cost - $57,947) 61,265
Select Conservative Portfolio,
1,403,939 shares (cost - $15,857) 16,327
Select Income Portfolio,
637,815 shares (cost - $7,263) 7,387
____________
TOTAL NET ASSETS (cost - $1,447,856) $1,587,040
============
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully Rising Small
Managed Dividends Cap
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $470 $298 --
Capital gains distributions 873 2,210 --
______________________________________
TOTAL INVESTMENT INCOME 1,343 2,508 --
Expenses:
Mortality and expense risk charges 186 764 $205
Annual contract charges 8 28 11
Transfer charges -- 1 --
______________________________________
TOTAL EXPENSES 194 793 216
______________________________________
NET INVESTMENT INCOME (LOSS) 1,149 1,715 (216)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 112 2,850 670
Net unrealized appreciation
(depreciation) of investments (822) 586 2,477
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $439 $5,151 $2,931
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple Hard
Allocation Assets Real Estate
Account(f) Account(e) Account(g)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $46 $19 $12
Capital gains distributions 50 12 22
______________________________________
TOTAL INVESTMENT INCOME 96 31 34
Expenses:
Mortality and expense risk charges 4 2 1
Annual contract charges -- -- --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 4 2 1
______________________________________
NET INVESTMENT INCOME (LOSS) 92 29 33
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (4) (3) (15)
Net unrealized appreciation
(depreciation) of investments (56) (62) (36)
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $32 ($36) ($18)
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital Value
All-Growth Appreciation Equity
Account(d) Account(c) Account(c)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $21 $4
Capital gains distributions $2 123 1
______________________________________
TOTAL INVESTMENT INCOME 2 144 5
Expenses:
Mortality and expense risk charges 2 4 1
Annual contract charges -- -- --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 2 4 1
______________________________________
NET INVESTMENT INCOME (LOSS) -- 140 4
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (93) (9) --
Net unrealized appreciation
(depreciation) of investments 92 (12) 3
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS ($1) $119 $7
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic Growth Developing
Equity Opportunities World
Account(c) Account(a) Account(a)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $5 -- --
Capital gains distributions 6 -- --
______________________________________
TOTAL INVESTMENT INCOME 11 -- --
Expenses:
Mortality and expense risk charges 1 $13 $5
Annual contract charges -- -- --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 1 13 5
______________________________________
NET INVESTMENT INCOME (LOSS) 10 (13) (5)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (6) (121) (58)
Net unrealized appreciation
(depreciation) of investments 1 3 (76)
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $5 ($131) ($139)
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap Total
Growth Research Return
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $7,724 $21,722 $15,826
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 7,724 21,722 15,826
Expenses:
Mortality and expense risk charges 1,560 3,751 2,688
Annual contract charges 91 197 129
Transfer charges 1 8 --
______________________________________
TOTAL EXPENSES 1,652 3,956 2,817
______________________________________
NET INVESTMENT INCOME (LOSS) 6,072 17,766 13,009
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2,477 10,709 1,329
Net unrealized appreciation
(depreciation) of investments 11,890 21,352 3,006
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $20,439 $49,827 $17,344
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Growth & Value + Fixed
Income Growth Income
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $3,776 $4,880 $472
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 3,776 4,880 472
Expenses:
Mortality and expense risk charges 1,436 971 170
Annual contract charges 75 51 8
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 1,511 1,022 178
______________________________________
NET INVESTMENT INCOME (LOSS) 2,265 3,858 294
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 2,020 2,697 (123)
Net unrealized appreciation
(depreciation) of investments 5,110 9,110 967
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $9,395 $15,665 $1,138
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity Liquid Money
Bond Asset Market
Account(h) Account(h) Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,328 $785 $1,195
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 1,328 785 1,195
Expenses:
Mortality and expense risk charges 234 228 336
Annual contract charges 9 8 9
Transfer charges -- 2 14
______________________________________
TOTAL EXPENSES 243 238 359
______________________________________
NET INVESTMENT INCOME (LOSS) 1,085 547 836
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 144 -- --
Net unrealized appreciation
(depreciation) of investments (327) -- --
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $902 $547 $836
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mortgage- PIMCO
Backed High Yield
Securities Advantage Bond
Account Account Account(b)
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $1,067 $887 $60
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 1,067 887 60
Expenses:
Mortality and expense risk charges 179 177 11
Annual contract charges 7 7 --
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 186 184 11
______________________________________
NET INVESTMENT INCOME (LOSS) 881 703 49
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (393) (504) (83)
Net unrealized appreciation
(depreciation) of investments (57) 281 19
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $431 $480 ($15)
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS Smith Barney
Growth and International Large Cap
Income Equity Value
Account(a) Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $132 $227 $1,168
Capital gains distributions -- -- 2,920
______________________________________
TOTAL INVESTMENT INCOME 132 227 4,088
Expenses:
Mortality and expense risk charges 22 597 1,469
Annual contract charges 1 34 58
Transfer charges -- 4 --
______________________________________
TOTAL EXPENSES 23 635 1,527
______________________________________
NET INVESTMENT INCOME (LOSS) 109 (408) 2,561
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments (275) (163) 1,156
Net unrealized appreciation
(depreciation) of investments 680 1,958 2,545
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $514 $1,387 $6,262
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney Smith Barney Smith Barney
International High Money
Equity Income Market
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends -- $1,449 $668
Capital gains distributions -- 333 --
______________________________________
TOTAL INVESTMENT INCOME -- 1,782 668
Expenses:
Mortality and expense risk charges $397 360 190
Annual contract charges 20 14 3
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 417 374 193
______________________________________
NET INVESTMENT INCOME (LOSS) (417) 1,408 475
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 311 262 --
Net unrealized appreciation
(depreciation) of investments 854 (2,115) --
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $748 ($445) $475
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select Select
Appreciation High Growth Growth
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $707 $211 $540
Capital gains distributions 2,761 -- --
______________________________________
TOTAL INVESTMENT INCOME 3,468 211 540
Expenses:
Mortality and expense risk charges 841 458 733
Annual contract charges 29 22 30
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 870 480 763
______________________________________
NET INVESTMENT INCOME (LOSS) 2,598 (269) (223)
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 174 178 176
Net unrealized appreciation
(depreciation) of investments 5,958 3,569 4,753
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $8,730 $3,478 $4,706
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select Select Select
Balanced Conservative Income
Account Account Account
______________________________________
<S> <C> <C> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $868 $260 $111
Capital gains distributions -- -- --
______________________________________
TOTAL INVESTMENT INCOME 868 260 111
Expenses:
Mortality and expense risk charges 699 181 81
Annual contract charges 22 5 2
Transfer charges -- -- --
______________________________________
TOTAL EXPENSES 721 186 83
______________________________________
NET INVESTMENT INCOME (LOSS) 147 74 28
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 222 107 118
Net unrealized appreciation
(depreciation) of investments 2,200 224 23
______________________________________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $2,569 $405 $169
======================================
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1998, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
NET INVESTMENT INCOME (LOSS)
Income:
Dividends $66,938
Capital gains distributions 9,313
____________
TOTAL INVESTMENT INCOME 76,251
Expenses:
Mortality and expense risk charges 18,957
Annual contract charges 878
Transfer charges 30
____________
TOTAL EXPENSES 19,865
____________
NET INVESTMENT INCOME (LOSS) 56,386
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS
Net realized gain (loss) on investments 23,862
Net unrealized appreciation
(depreciation) of investments 74,098
____________
NET INCREASE (DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS $154,346
============
<FN>
(a) Commencement of operations, June 8, 1998
(b) Commencement of operations, June 9, 1998
(c) Commencement of operations, June 16, 1998
(d) Commencement of operations, June 19, 1998
(e) Commencement of operations, June 23, 1998
(f) Commencement of operations, June 24, 1998
(g) Commencement of operations, July 2, 1998
(h) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Fully
Managed
Account(a)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $568
Net realized gain (loss) on investments 13
Net unrealized appreciation (depreciation) of investments (119)
____________
Net increase (decrease)in net assets resulting from operations 462
Changes from principal transactions:
Purchase payments 3,480
Contract distributions and terminations (76)
Transfer payments from (to) other Accounts and Fixed Account 4,590
____________
Increase in net assets derived from principal transactions 7,994
____________
Total increase 8,456
____________
NET ASSETS AT DECEMBER 31, 1997 8,456
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION> Fully
Managed
Account(a)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,149
Net realized gain (loss) on investments 112
Net unrealized appreciation (depreciation) of investments (822)
____________
Net increase (decrease) in net assets resulting from operations 439
Changes from principal transactions:
Purchase payments 3,805
Contract distributions and terminations (793)
Transfer payments from (to) other Accounts and Fixed Account 4,108
____________
Increase (decrease) in net assets derived from
principal transactions 7,120
____________
Total increase (decrease) 7,559
____________
NET ASSETS AT DECEMBER 31, 1998 $16,015
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Account(b)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) $534
Net realized gain (loss) on investments 689
Net unrealized appreciation (depreciation) of investments 1,602
____________
Net increase (decrease)in net assets resulting from operations 2,825
Changes from principal transactions:
Purchase payments 10,120
Contract distributions and terminations (592)
Transfer payments from (to) other Accounts and Fixed Account 19,021
____________
Increase in net assets derived from principal transactions 28,549
____________
Total increase 31,374
____________
NET ASSETS AT DECEMBER 31, 1997 31,374
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Rising
Dividends
Account(b)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,715
Net realized gain (loss) on investments 2,850
Net unrealized appreciation (depreciation) of investments 586
____________
Net increase (decrease) in net assets resulting from operations 5,151
Changes from principal transactions:
Purchase payments 12,608
Contract distributions and terminations (2,631)
Transfer payments from (to) other Accounts and Fixed Account 19,883
____________
Increase (decrease) in net assets derived from
principal transactions 29,860
____________
Total increase (decrease) 35,011
____________
NET ASSETS AT DECEMBER 31, 1998 $66,385
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Account(a)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($72)
Net realized gain (loss) on investments 250
Net unrealized appreciation (depreciation) of investments 652
____________
Net increase (decrease)in net assets resulting from operations 830
Changes from principal transactions:
Purchase payments 4,227
Contract distributions and terminations (467)
Transfer payments from (to) other Accounts and Fixed Account 6,811
____________
Increase in net assets derived from principal transactions 10,571
____________
Total increase 11,401
____________
NET ASSETS AT DECEMBER 31, 1997 11,401
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Small Cap
Account(a)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($216)
Net realized gain (loss) on investments 670
Net unrealized appreciation (depreciation) of investments 2,477
____________
Net increase (decrease) in net assets resulting from operations 2,931
Changes from principal transactions:
Purchase payments 3,110
Contract distributions and terminations (902)
Transfer payments from (to) other Accounts and Fixed Account 3,598
____________
Increase (decrease) in net assets derived from
principal transactions 5,806
____________
Total increase (decrease) 8,737
____________
NET ASSETS AT DECEMBER 31, 1998 $20,138
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Account(l)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Multiple
Allocation
Account(l)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $92
Net realized gain (loss) on investments (4)
Net unrealized appreciation (depreciation) of investments (56)
____________
Net increase (decrease) in net assets resulting from operations 32
Changes from principal transactions:
Purchase payments 139
Contract distributions and terminations (12)
Transfer payments from (to) other Accounts and Fixed Account 799
____________
Increase (decrease) in net assets derived from
principal transactions 926
____________
Total increase (decrease) 958
____________
NET ASSETS AT DECEMBER 31, 1998 $958
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Account(k)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Hard
Assets
Account(k)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $29
Net realized gain (loss) on investments (3)
Net unrealized appreciation (depreciation) of investments (62)
____________
Net increase (decrease) in net assets resulting from operations (36)
Changes from principal transactions:
Purchase payments 7
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account 370
____________
Increase (decrease) in net assets derived from
principal transactions 377
____________
Total increase (decrease) 341
____________
NET ASSETS AT DECEMBER 31, 1998 $341
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Account(m)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Real
Estate
Account(m)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $33
Net realized gain (loss) on investments (15)
Net unrealized appreciation (depreciation) of investments (36)
____________
Net increase (decrease) in net assets resulting from operations (18)
Changes from principal transactions:
Purchase payments 89
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account 181
____________
Increase (decrease) in net assets derived from
principal transactions 270
____________
Total increase (decrease) 252
____________
NET ASSETS AT DECEMBER 31, 1998 $252
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Account(j)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
All-Growth
Account(j)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments ($93)
Net unrealized appreciation (depreciation) of investments 92
____________
Net increase (decrease) in net assets resulting from operations (1)
Changes from principal transactions:
Purchase payments 19
Contract distributions and terminations (2)
Transfer payments from (to) other Accounts and Fixed Account 376
____________
Increase (decrease) in net assets derived from
principal transactions 393
____________
Total increase (decrease) 392
____________
NET ASSETS AT DECEMBER 31, 1998 $392
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Account(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Capital
Appreciation
Account(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $140
Net realized gain (loss) on investments (9)
Net unrealized appreciation (depreciation) of investments (12)
____________
Net increase (decrease) in net assets resulting from operations 119
Changes from principal transactions:
Purchase payments 120
Contract distributions and terminations (10)
Transfer payments from (to) other Accounts and Fixed Account 1,445
____________
Increase (decrease) in net assets derived from
principal transactions 1,555
____________
Total increase (decrease) 1,674
____________
NET ASSETS AT DECEMBER 31, 1998 $1,674
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Account(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value
Equity
Account(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $4
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations 7
Changes from principal transactions:
Purchase payments 18
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account 222
____________
Increase (decrease) in net assets derived from
principal transactions 240
____________
Total increase (decrease) 247
____________
NET ASSETS AT DECEMBER 31, 1998 $247
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Account(i)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Strategic
Equity
Account(i)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $10
Net realized gain (loss) on investments (6)
Net unrealized appreciation (depreciation) of investments 1
____________
Net increase (decrease) in net assets resulting from operations 5
Changes from principal transactions:
Purchase payments 27
Contract distributions and terminations (2)
Transfer payments from (to) other Accounts and Fixed Account 143
____________
Increase (decrease) in net assets derived from
principal transactions 168
____________
Total increase (decrease) 173
____________
NET ASSETS AT DECEMBER 31, 1998 $173
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Opportun-
ities
Account(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth
Opportun-
ities
Account(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($13)
Net realized gain (loss) on investments (121)
Net unrealized appreciation (depreciation) of investments 3
____________
Net increase (decrease) in net assets resulting from operations (131)
Changes from principal transactions:
Purchase payments 23
Contract distributions and terminations (18)
Transfer payments from (to) other Accounts and Fixed Account 199
____________
Increase (decrease) in net assets derived from
principal transactions 204
____________
Total increase (decrease) 73
____________
NET ASSETS AT DECEMBER 31, 1998 $73
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Developing
World
Account(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Developing
World
Account(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($5)
Net realized gain (loss) on investments (58)
Net unrealized appreciation (depreciation) of investments (76)
____________
Net increase (decrease) in net assets resulting from operations (139)
Changes from principal transactions:
Purchase payments 22
Contract distributions and terminations (9)
Transfer payments from (to) other Accounts and Fixed Account 722
____________
Increase (decrease) in net assets derived from
principal transactions 735
____________
Total increase (decrease) 596
____________
NET ASSETS AT DECEMBER 31, 1998 $596
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $40,853
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 2,791
Net realized gain (loss) on investments 3,086
Net unrealized appreciation (depreciation) of investments 4,758
____________
Net increase (decrease)in net assets resulting from operations 10,635
Changes from principal transactions:
Purchase payments 25,661
Contract distributions and terminations (2,959)
Transfer payments from (to) other Accounts and Fixed Account 15,167
____________
Increase in net assets derived from principal transactions 37,869
____________
Total increase 48,504
____________
NET ASSETS AT DECEMBER 31, 1997 89,357
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mid-Cap
Growth
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $6,072
Net realized gain (loss) on investments 2,477
Net unrealized appreciation (depreciation) of investments 11,890
____________
Net increase (decrease) in net assets resulting from operations 20,439
Changes from principal transactions:
Purchase payments 21,460
Contract distributions and terminations (6,410)
Transfer payments from (to) other Accounts and Fixed Account 8,010
____________
Increase (decrease) in net assets derived from
principal transactions 23,060
____________
Total increase (decrease) 43,499
____________
NET ASSETS AT DECEMBER 31, 1998 $132,856
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $77,175
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 4,344
Net realized gain (loss) on investments 3,990
Net unrealized appreciation (depreciation) of investments 12,925
____________
Net increase (decrease)in net assets resulting from operations 21,259
Changes from principal transactions:
Purchase payments 67,832
Contract distributions and terminations (5,189)
Transfer payments from (to) other Accounts and Fixed Account 43,443
____________
Increase in net assets derived from principal transactions 106,086
____________
Total increase 127,345
____________
NET ASSETS AT DECEMBER 31, 1997 204,520
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Research
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $17,766
Net realized gain (loss) on investments 10,709
Net unrealized appreciation (depreciation) of investments 21,352
____________
Net increase (decrease) in net assets resulting from operations 49,827
Changes from principal transactions:
Purchase payments 53,892
Contract distributions and terminations (15,480)
Transfer payments from (to) other Accounts and Fixed Account 32,016
____________
Increase (decrease) in net assets derived from
principal transactions 70,428
____________
Total increase (decrease) 120,255
____________
NET ASSETS AT DECEMBER 31, 1998 $324,775
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $58,835
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 3,478
Net realized gain (loss) on investments 638
Net unrealized appreciation (depreciation) of investments 13,099
____________
Net increase (decrease)in net assets resulting from operations 17,215
Changes from principal transactions:
Purchase payments 46,890
Contract distributions and terminations (5,976)
Transfer payments from (to) other Accounts and Fixed Account 31,888
____________
Increase in net assets derived from principal transactions 72,802
____________
Total increase 90,017
____________
NET ASSETS AT DECEMBER 31, 1997 148,852
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Total
Return
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $13,009
Net realized gain (loss) on investments 1,329
Net unrealized appreciation (depreciation) of investments 3,006
____________
Net increase (decrease) in net assets resulting from operations 17,344
Changes from principal transactions:
Purchase payments 41,331
Contract distributions and terminations (10,918)
Transfer payments from (to) other Accounts and Fixed Account 24,799
____________
Increase (decrease) in net assets derived from
principal transactions 55,212
____________
Total increase (decrease) 72,556
____________
NET ASSETS AT DECEMBER 31, 1998 $221,408
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $27,830
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 6,214
Net realized gain (loss) on investments 1,222
Net unrealized appreciation (depreciation) of investments 4,340
____________
Net increase (decrease)in net assets resulting from operations 11,776
Changes from principal transactions:
Purchase payments 26,757
Contract distributions and terminations (2,887)
Transfer payments from (to) other Accounts and Fixed Account 24,333
____________
Increase in net assets derived from principal transactions 48,203
____________
Total increase 59,979
____________
NET ASSETS AT DECEMBER 31, 1997 87,809
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Growth &
Income
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,265
Net realized gain (loss) on investments 2,020
Net unrealized appreciation (depreciation) of investments 5,110
____________
Net increase (decrease) in net assets resulting from operations 9,395
Changes from principal transactions:
Purchase payments 14,922
Contract distributions and terminations (5,781)
Transfer payments from (to) other Accounts and Fixed Account 10,446
____________
Increase (decrease) in net assets derived from
principal transactions 19,587
____________
Total increase (decrease) 28,982
____________
NET ASSETS AT DECEMBER 31, 1998 $116,791
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $14,136
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (507)
Net realized gain (loss) on investments 1,030
Net unrealized appreciation (depreciation) of investments 347
____________
Net increase (decrease)in net assets resulting from operations 870
Changes from principal transactions:
Purchase payments 18,436
Contract distributions and terminations (1,779)
Transfer payments from (to) other Accounts and Fixed Account 24,710
____________
Increase in net assets derived from principal transactions 41,367
____________
Total increase 42,237
____________
NET ASSETS AT DECEMBER 31, 1997 56,373
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Value +
Growth
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $3,858
Net realized gain (loss) on investments 2,697
Net unrealized appreciation (depreciation) of investments 9,110
____________
Net increase (decrease) in net assets resulting from operations 15,665
Changes from principal transactions:
Purchase payments 11,209
Contract distributions and terminations (3,821)
Transfer payments from (to) other Accounts and Fixed Account 6,551
____________
Increase (decrease) in net assets derived from
principal transactions 13,939
____________
Total increase (decrease) 29,604
____________
NET ASSETS AT DECEMBER 31, 1998 $85,977
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $8,440
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 447
Net realized gain (loss) on investments 125
Net unrealized appreciation (depreciation) of investments (614)
____________
Net increase (decrease)in net assets resulting from operations (42)
Changes from principal transactions:
Purchase payments 2,503
Contract distributions and terminations (603)
Transfer payments from (to) other Accounts and Fixed Account 1,607
____________
Increase in net assets derived from principal transactions 3,507
____________
Total increase 3,465
____________
NET ASSETS AT DECEMBER 31, 1997 11,905
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Global
Fixed
Income
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $294
Net realized gain (loss) on investments (123)
Net unrealized appreciation (depreciation) of investments 967
____________
Net increase (decrease) in net assets resulting from operations 1,138
Changes from principal transactions:
Purchase payments 1,025
Contract distributions and terminations (938)
Transfer payments from (to) other Accounts and Fixed Account (739)
____________
Increase (decrease) in net assets derived from
principal transactions (652)
____________
Total increase (decrease) 486
____________
NET ASSETS AT DECEMBER 31, 1998 $12,391
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Account(n)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Limited
Maturity
Bond
Account(n)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,085
Net realized gain (loss) on investments 144
Net unrealized appreciation (depreciation) of investments (327)
____________
Net increase (decrease) in net assets resulting from operations 902
Changes from principal transactions:
Purchase payments 2,329
Contract distributions and terminations (868)
Transfer payments from (to) other Accounts and Fixed Account 41,705
____________
Increase (decrease) in net assets derived from
principal transactions 43,166
____________
Total increase (decrease) 44,068
____________
NET ASSETS AT DECEMBER 31, 1998 $44,068
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Account(n)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Liquid
Asset
Account(n)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $547
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 547
Changes from principal transactions:
Purchase payments 25,410
Contract distributions and terminations (3,992)
Transfer payments from (to) other Accounts and Fixed Account 11,533
____________
Increase (decrease) in net assets derived from
principal transactions 32,951
____________
Total increase (decrease) 33,498
____________
NET ASSETS AT DECEMBER 31, 1998 $33,498
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Money
Market
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $19,138
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 1,163
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations 1,163
Changes from principal transactions:
Purchase payments 180,384
Contract distributions and terminations (3,652)
Transfer payments from (to) other Accounts and Fixed Account (161,449)
____________
Increase in net assets derived from principal transactions 15,283
____________
Total increase 16,446
____________
NET ASSETS AT DECEMBER 31, 1997 35,584
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Money
Market
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $836
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 836
Changes from principal transactions:
Purchase payments 76,038
Contract distributions and terminations (3,609)
Transfer payments from (to) other Accounts and Fixed Account (108,849)
____________
Increase (decrease) in net assets derived from
principal transactions (36,420)
____________
Total increase (decrease) (35,584)
____________
NET ASSETS AT DECEMBER 31, 1998 --
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mortgage-
Backed
Securities
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $10,833
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 581
Net realized gain (loss) on investments (50)
Net unrealized appreciation (depreciation) of investments 373
____________
Net increase (decrease)in net assets resulting from operations 904
Changes from principal transactions:
Purchase payments 3,919
Contract distributions and terminations (720)
Transfer payments from (to) other Accounts and Fixed Account 2,737
____________
Increase in net assets derived from principal transactions 5,936
____________
Total increase 6,840
____________
NET ASSETS AT DECEMBER 31, 1997 17,673
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Mortgage-
Backed
Securities
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $881
Net realized gain (loss) on investments (393)
Net unrealized appreciation (depreciation) of investments (57)
____________
Net increase (decrease) in net assets resulting from operations 431
Changes from principal transactions:
Purchase payments 2,518
Contract distributions and terminations (1,175)
Transfer payments from (to) other Accounts and Fixed Account (19,447)
____________
Increase (decrease) in net assets derived from
principal transactions (18,104)
____________
Total increase (decrease) (17,673)
____________
NET ASSETS AT DECEMBER 31, 1998 --
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Advantage
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $15,019
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 531
Net realized gain (loss) on investments 256
Net unrealized appreciation (depreciation) of investments (69)
____________
Net increase (decrease)in net assets resulting from operations 718
Changes from principal transactions:
Purchase payments 8,222
Contract distributions and terminations (1,616)
Transfer payments from (to) other Accounts and Fixed Account (4,515)
____________
Increase in net assets derived from principal transactions 2,091
____________
Total increase 2,809
____________
NET ASSETS AT DECEMBER 31, 1997 17,828
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Advantage
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $703
Net realized gain (loss) on investments (504)
Net unrealized appreciation (depreciation) of investments 281
____________
Net increase (decrease) in net assets resulting from operations 480
Changes from principal transactions:
Purchase payments 2,759
Contract distributions and terminations (1,057)
Transfer payments from (to) other Accounts and Fixed Account (20,010)
____________
Increase (decrease) in net assets derived from
principal transactions (18,308)
____________
Total increase (decrease) (17,828)
____________
NET ASSETS AT DECEMBER 31, 1998 --
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield Bond
Account(h)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
High
Yield Bond
Account(h)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $49
Net realized gain (loss) on investments (83)
Net unrealized appreciation (depreciation) of investments 19
____________
Net increase (decrease) in net assets resulting from operations (15)
Changes from principal transactions:
Purchase payments 344
Contract distributions and terminations (79)
Transfer payments from (to) other Accounts and Fixed Account 1,776
____________
Increase (decrease) in net assets derived from
principal transactions 2,041
____________
Total increase (decrease) 2,026
____________
NET ASSETS AT DECEMBER 31, 1998 $2,026
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth &
Income
Account(g)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) --
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations --
Changes from principal transactions:
Purchase payments --
Contract distributions and terminations --
Transfer payments from (to) other Accounts and Fixed Account --
____________
Increase in net assets derived from principal transactions --
____________
Total increase --
____________
NET ASSETS AT DECEMBER 31, 1997 --
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
PIMCO
StocksPLUS
Growth &
Income
Account(g)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $109
Net realized gain (loss) on investments (275)
Net unrealized appreciation (depreciation) of investments 680
____________
Net increase (decrease) in net assets resulting from operations 514
Changes from principal transactions:
Purchase payments 197
Contract distributions and terminations (43)
Transfer payments from (to) other Accounts and Fixed Account 5,706
____________
Increase (decrease) in net assets derived from
principal transactions 5,860
____________
Total increase (decrease) 6,374
____________
NET ASSETS AT DECEMBER 31, 1998 $6,374
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $20,824
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 1,981
Net realized gain (loss) on investments 175
Net unrealized appreciation (depreciation) of investments (5,059)
____________
Net increase (decrease)in net assets resulting from operations (2,903)
Changes from principal transactions:
Purchase payments 11,101
Contract distributions and terminations (2,232)
Transfer payments from (to) other Accounts and Fixed Account 11,923
____________
Increase in net assets derived from principal transactions 20,792
____________
Total increase 17,889
____________
NET ASSETS AT DECEMBER 31, 1997 38,713
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Inter-
national
Equity
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($408)
Net realized gain (loss) on investments (163)
Net unrealized appreciation (depreciation) of investments 1,958
____________
Net increase (decrease) in net assets resulting from operations 1,387
Changes from principal transactions:
Purchase payments 4,921
Contract distributions and terminations (2,836)
Transfer payments from (to) other Accounts and Fixed Account 718
____________
Increase (decrease) in net assets derived from
principal transactions 2,803
____________
Total increase (decrease) 4,190
____________
NET ASSETS AT DECEMBER 31, 1998 $42,903
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Large Cap
Value
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $22,471
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (668)
Net realized gain (loss) on investments 173
Net unrealized appreciation (depreciation) of investments 9,764
____________
Net increase (decrease)in net assets resulting from operations 9,269
Changes from principal transactions:
Purchase payments 32,707
Contract distributions and terminations (1,296)
Transfer payments from (to) other Accounts and Fixed Account 11,679
____________
Increase in net assets derived from principal transactions 43,090
____________
Total increase 52,359
____________
NET ASSETS AT DECEMBER 31, 1997 74,830
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Large Cap
Value
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,561
Net realized gain (loss) on investments 1,156
Net unrealized appreciation (depreciation) of investments 2,545
____________
Net increase (decrease) in net assets resulting from operations 6,262
Changes from principal transactions:
Purchase payments 31,229
Contract distributions and terminations (5,874)
Transfer payments from (to) other Accounts and Fixed Account 13,079
____________
Increase (decrease) in net assets derived from
principal transactions 38,434
____________
Total increase (decrease) 44,696
____________
NET ASSETS AT DECEMBER 31, 1998 $119,526
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Inter-
national
Equity
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $10,805
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (263)
Net realized gain (loss) on investments 63
Net unrealized appreciation (depreciation) of investments (159)
____________
Net increase (decrease)in net assets resulting from operations (359)
Changes from principal transactions:
Purchase payments 10,522
Contract distributions and terminations (391)
Transfer payments from (to) other Accounts and Fixed Account 2,996
____________
Increase in net assets derived from principal transactions 13,127
____________
Total increase 12,768
____________
NET ASSETS AT DECEMBER 31, 1997 23,573
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Inter-
national
Equity
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($417)
Net realized gain (loss) on investments 311
Net unrealized appreciation (depreciation) of investments 854
____________
Net increase (decrease) in net assets resulting from operations 748
Changes from principal transactions:
Purchase payments 5,760
Contract distributions and terminations (1,469)
Transfer payments from (to) other Accounts and Fixed Account 1,292
____________
Increase (decrease) in net assets derived from
principal transactions 5,583
____________
Total increase (decrease) 6,331
____________
NET ASSETS AT DECEMBER 31, 1998 $29,904
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
High
Income
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $8,195
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) (213)
Net realized gain (loss) on investments 109
Net unrealized appreciation (depreciation) of investments 1,805
____________
Net increase (decrease)in net assets resulting from operations 1,701
Changes from principal transactions:
Purchase payments 9,444
Contract distributions and terminations (349)
Transfer payments from (to) other Accounts and Fixed Account 2,199
____________
Increase in net assets derived from principal transactions 11,294
____________
Total increase 12,995
____________
NET ASSETS AT DECEMBER 31, 1997 21,190
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
High
Income
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $1,408
Net realized gain (loss) on investments 262
Net unrealized appreciation (depreciation) of investments (2,115)
____________
Net increase (decrease) in net assets resulting from operations (445)
Changes from principal transactions:
Purchase payments 6,314
Contract distributions and terminations (1,655)
Transfer payments from (to) other Accounts and Fixed Account 773
____________
Increase (decrease) in net assets derived from
principal transactions 5,432
____________
Total increase (decrease) 4,987
____________
NET ASSETS AT DECEMBER 31, 1998 $26,177
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Money
Market
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $3,694
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 294
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease)in net assets resulting from operations 294
Changes from principal transactions:
Purchase payments 72,870
Contract distributions and terminations (272)
Transfer payments from (to) other Accounts and Fixed Account (64,047)
____________
Increase in net assets derived from principal transactions 8,551
____________
Total increase 8,845
____________
NET ASSETS AT DECEMBER 31, 1997 12,539
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Smith Barney
Money
Market
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $475
Net realized gain (loss) on investments --
Net unrealized appreciation (depreciation) of investments --
____________
Net increase (decrease) in net assets resulting from operations 475
Changes from principal transactions:
Purchase payments 89,101
Contract distributions and terminations (1,272)
Transfer payments from (to) other Accounts and Fixed Account (92,088)
____________
Increase (decrease) in net assets derived from
principal transactions (4,259)
____________
Total increase (decrease) (3,784)
____________
NET ASSETS AT DECEMBER 31, 1998 $8,755
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appreciation
Account
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $5,586
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 1,683
Net realized gain (loss) on investments 8
Net unrealized appreciation (depreciation) of investments 1,159
____________
Net increase (decrease)in net assets resulting from operations 2,850
Changes from principal transactions:
Purchase payments 17,039
Contract distributions and terminations (366)
Transfer payments from (to) other Accounts and Fixed Account 5,412
____________
Increase in net assets derived from principal transactions 22,085
____________
Total increase 24,935
____________
NET ASSETS AT DECEMBER 31, 1997 30,521
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Appreciation
Account
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $2,598
Net realized gain (loss) on investments 174
Net unrealized appreciation (depreciation) of investments 5,958
____________
Net increase (decrease) in net assets resulting from operations 8,730
Changes from principal transactions:
Purchase payments 27,017
Contract distributions and terminations (2,431)
Transfer payments from (to) other Accounts and Fixed Account 16,280
____________
Increase (decrease) in net assets derived from
principal transactions 40,866
____________
Total increase (decrease) 49,596
____________
NET ASSETS AT DECEMBER 31, 1998 $80,117
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
High
Growth
Account(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($96)
Net realized gain (loss) on investments 36
Net unrealized appreciation (depreciation) of investments 110
____________
Net increase (decrease)in net assets resulting from operations 50
Changes from principal transactions:
Purchase payments 15,566
Contract distributions and terminations (244)
Transfer payments from (to) other Accounts and Fixed Account 4,916
____________
Increase in net assets derived from principal transactions 20,238
____________
Total increase 20,288
____________
NET ASSETS AT DECEMBER 31, 1997 20,288
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
High
Growth
Account(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($269)
Net realized gain (loss) on investments 178
Net unrealized appreciation (depreciation) of investments 3,569
____________
Net increase (decrease) in net assets resulting from operations 3,478
Changes from principal transactions:
Purchase payments 13,012
Contract distributions and terminations (1,833)
Transfer payments from (to) other Accounts and Fixed Account 6,371
____________
Increase (decrease) in net assets derived from
principal transactions 17,550
____________
Total increase (decrease) 21,028
____________
NET ASSETS AT DECEMBER 31, 1998 $41,316
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Growth
Account(d)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($143)
Net realized gain (loss) on investments 4
Net unrealized appreciation (depreciation) of investments 902
____________
Net increase (decrease)in net assets resulting from operations 763
Changes from principal transactions:
Purchase payments 22,740
Contract distributions and terminations (162)
Transfer payments from (to) other Accounts and Fixed Account 7,236
____________
Increase in net assets derived from principal transactions 29,814
____________
Total increase 30,577
____________
NET ASSETS AT DECEMBER 31, 1997 30,577
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Growth
Account(d)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) ($223)
Net realized gain (loss) on investments 176
Net unrealized appreciation (depreciation) of investments 4,753
____________
Net increase (decrease) in net assets resulting from operations 4,706
Changes from principal transactions:
Purchase payments 21,314
Contract distributions and terminations (2,023)
Transfer payments from (to) other Accounts and Fixed Account 11,381
____________
Increase (decrease) in net assets derived from
principal transactions 30,672
____________
Total increase (decrease) 35,378
____________
NET ASSETS AT DECEMBER 31, 1998 $65,955
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Balanced
Account(c)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($150)
Net realized gain (loss) on investments 4
Net unrealized appreciation (depreciation) of investments 1,118
____________
Net increase (decrease)in net assets resulting from operations 972
Changes from principal transactions:
Purchase payments 20,980
Contract distributions and terminations (142)
Transfer payments from (to) other Accounts and Fixed Account 7,697
____________
Increase in net assets derived from principal transactions 28,535
____________
Total increase 29,507
____________
NET ASSETS AT DECEMBER 31, 1997 29,507
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Balanced
Account(c)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $147
Net realized gain (loss) on investments 222
Net unrealized appreciation (depreciation) of investments 2,200
____________
Net increase (decrease) in net assets resulting from operations 2,569
Changes from principal transactions:
Purchase payments 21,186
Contract distributions and terminations (2,310)
Transfer payments from (to) other Accounts and Fixed Account 10,313
____________
Increase (decrease) in net assets derived from
principal transactions 29,189
____________
Total increase (decrease) 31,758
____________
NET ASSETS AT DECEMBER 31, 1998 $61,265
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Conservative
Account(f)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($34)
Net realized gain (loss) on investments 22
Net unrealized appreciation (depreciation) of investments 246
____________
Net increase (decrease)in net assets resulting from operations 234
Changes from principal transactions:
Purchase payments 5,637
Contract distributions and terminations (78)
Transfer payments from (to) other Accounts and Fixed Account 1,637
____________
Increase in net assets derived from principal transactions 7,196
____________
Total increase 7,430
____________
NET ASSETS AT DECEMBER 31, 1997 7,430
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Conservative
Account(f)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $74
Net realized gain (loss) on investments 107
Net unrealized appreciation (depreciation) of investments 224
____________
Net increase (decrease) in net assets resulting from operations 405
Changes from principal transactions:
Purchase payments 5,520
Contract distributions and terminations (727)
Transfer payments from (to) other Accounts and Fixed Account 3,699
____________
Increase (decrease) in net assets derived from
principal transactions 8,492
____________
Total increase (decrease) 8,897
____________
NET ASSETS AT DECEMBER 31, 1998 $16,327
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Income
Account(e)
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 --
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) ($14)
Net realized gain (loss) on investments 20
Net unrealized appreciation (depreciation) of investments 101
____________
Net increase (decrease)in net assets resulting from operations 107
Changes from principal transactions:
Purchase payments 2,218
Contract distributions and terminations (56)
Transfer payments from (to) other Accounts and Fixed Account 498
____________
Increase in net assets derived from principal transactions 2,660
____________
Total increase 2,767
____________
NET ASSETS AT DECEMBER 31, 1997 2,767
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Select
Income
Account(e)
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $28
Net realized gain (loss) on investments 118
Net unrealized appreciation (depreciation) of investments 23
____________
Net increase (decrease) in net assets resulting from operations 169
Changes from principal transactions:
Purchase payments 2,142
Contract distributions and terminations (300)
Transfer payments from (to) other Accounts and Fixed Account 2,609
____________
Increase (decrease) in net assets derived from
principal transactions 4,451
____________
Total increase (decrease) 4,620
____________
NET ASSETS AT DECEMBER 31, 1998 $7,387
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
NET ASSETS AT JANUARY 1, 1997 $343,834
INCREASE IN NET ASSETS
Operations:
Net investment income (loss) 22,449
Net realized gain (loss) on investments 11,863
Net unrealized appreciation (depreciation) of investments 47,281
____________
Net increase (decrease)in net assets resulting from operations 81,593
Changes from principal transactions:
Purchase payments 619,255
Contract distributions and terminations (32,104)
Transfer payments from (to) other Accounts and Fixed Account 489
____________
Increase in net assets derived from principal transactions 587,640
____________
Total increase 669,233
____________
NET ASSETS AT DECEMBER 31, 1997 1,013,067
</TABLE>
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEARS ENDED DECEMBER 31, 1998 AND 1997, EXCEPT AS NOTED
(CONTINUED)
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Combined
____________
<S> <C>
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss) $56,386
Net realized gain (loss) on investments 23,862
Net unrealized appreciation (depreciation) of investments 74,098
____________
Net increase (decrease) in net assets resulting from operations 154,346
Changes from principal transactions:
Purchase payments 500,937
Contract distributions and terminations (81,280)
Transfer payments from (to) other Accounts and Fixed Account (30)
____________
Increase (decrease) in net assets derived from
principal transactions 419,627
____________
Total increase (decrease) 573,973
____________
NET ASSETS AT DECEMBER 31, 1998 $1,587,040
============
<FN>
(a) Commencement of operations, February 5, 1997
(b) Commencement of operations, February 10, 1997
(c) Commencement of operations, February 21, 1997
(d) Commencement of operations, March 6, 1997
(e) Commencement of operations, March 19, 1997
(f) Commencement of operations, March 26, 1997
(g) Commencement of operations, June 8, 1998
(h) Commencement of operations, June 9, 1998
(i) Commencement of operations, June 16, 1998
(j) Commencement of operations, June 19, 1998
(k) Commencement of operations, June 23, 1998
(l) Commencement of operations, June 24, 1998
(m) Commencement of operations, July 2, 1998
(n) Commencement of operations, August 14, 1998
</TABLE>
See accompanying notes.
EQUITABLE LIFE INSURANCE COMPANY OF IOWA
SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1998
NOTE 1 - ORGANIZATION
Equitable Life Insurance Company of Iowa Separate Account A (the "Separate
Account") was established by Equitable Life Insurance Company of Iowa (the
"Company") in accordance with the provisions of Iowa Insurance laws and is a
part of the total operations of the Company. The assets and liabilities of
the Separate Account are clearly identified and distinguished from the other
assets and liabilities of the Company. Commencement of operations is defined
as the date of initial sale of contract units to Contractowners. Investments
are stated at the closing net asset values per share on December 31, 1998.
The Separate Account is a unit investment trust, registered with the
Securities and Exchange Commission under the Investment Company Act of 1940,
as amended. As of December 31, 1998, the Separate Account consisted of
thirty-three investment accounts. The assets in each account are invested in
shares of a designated Series ("Series," which may also be referred to as a
"Portfolio") of mutual funds of The GCG Trust, PIMCO Variable Insurance
Trust, Travelers Series Fund Inc., Greenwich Street Series Fund Inc.
(formerly Smith Barney Series Fund, Inc.), Smith Barney Concert Allocation
Series Inc. or Warburg Pincus Trust (the "Trusts"). The Trusts are open
ended management investment companies. Twenty of the accounts (Fully
Managed, Rising Dividends, Small Cap, Multiple Allocation, Hard Assets, Real
Estate, All-Growth, Capital Appreciation, Value Equity, Strategic Equity,
Growth Opportunities, Developing World, Mid-Cap Growth, Research, Total
Return, Growth & Income, Value + Growth, Global Fixed Income, Limited
Maturity Bond and Liquid Asset) are invested in specific series of The GCG
Trust, two of which (PIMCO High Yield Bond and PIMCO StocksPLUS Growth and
Income) are invested in specific series of the PIMCO Variable Insurance Trust
and one of which (International Equity) is invested in the International
Equity Portfolio of the Warburg Pincus Trust as directed by eligible
Contractowners. Activity in these twenty-three investment accounts is
available to Contractowners of the Equi-Select Variable Annuity product.
Prior to August 14, 1998, the Separate Account also had certain investment
divisions available from the Equi-Select Series Trust. In an effort to
consolidate operations, the Company requested permission from the Securities
and Exchange Commission ("SEC") to substitute shares of each Portfolio of the
Equi-Select Series Trust with shares of a similar Series of The GCG Trust. On
August 14, 1998, after approval from the SEC, shares of each Portfolio of the
Equi-Select Series Trust were substituted with shares of a similar Series of
The GCG Trust. The consolidation resulted in the following Series being
substituted from The GCG Trust:
<TABLE>
<CAPTION>
Equi-Select Series Trust The GCG Trust
Investment Division Investment Division
___________________________ ___________________________
<S> <S>
International Fixed Income Global Fixed Income
OTC Mid-Cap Growth
Research Research
Total Return Total Return
Value + Growth Value + Growth
Growth & Income Growth & Income
Money Market Liquid Asset
Advantage Limited Maturity Bond
Morgage-Backed Securities Limited Maturity Bond
</TABLE>
The remaining ten investment accounts are invested in specific portfolios,
four of which (Smith Barney Large Cap Value (formerly Smith Barney Income and
Growth), Smith Barney International Equity, Smith Barney High Income, and
Smith Barney Money Market) are invested in the Travelers Series Fund Inc.,
one of which (Appreciation) is invested in the Greenwich Street Series Fund
Inc. and five of which (Select High Growth, Select Growth, Select Balanced,
Select Conservative and Select Income) are invested in the Smith Barney
Concert Allocation Series Inc. These ten investment accounts and the Research,
Mid-Cap Growth and Total Return Accounts, which invest in The GCG Trust, are
available to Contractowners of the PrimElite Variable Annuity product.
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the
Separate Account:
USE OF ESTIMATES: The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
INVESTMENTS: Investments are made in shares of a Series or Portfolio of the
Trusts and are valued at the net asset value per share of the respective
Series or Portfolio of the Trusts. Investment transactions in each Series or
Portfolio of the Trusts are recorded on the trade date. Distributions of net
investment income and capital gains from each Series or Portfolio of the
Trusts are recognized on the ex-distribution date. Realized gains and losses
on redemptions of the shares of the Series or Portfolio of the Trusts are
determined on the specific identification basis.
FEDERAL INCOME TAXES: Operations of the Separate Account form a part of, and
are taxed with, the total operations of the Company which is taxed as a life
insurance company under the Internal Revenue Code. Earnings and realized
capital gains of the Separate Account attributable to the Contractowners are
excluded in the determination of the federal income tax liability of the
Company.
NOTE 3 - CHARGES AND FEES
Under the terms of the Contracts, certain charges are allocated to the
Contracts to cover the Company's expenses in connection with the issuance and
administration of the Contracts. Following is a summary of these charges:
MORTALITY AND EXPENSE RISK AND ADMINISTRATIVE CHARGES: The Company is
compensated for mortality and expense risks and administrative costs by a
charge equivalent to an annual rate of 1.25% and 0.15%, respectively, of the
total net assets of each account.
ANNUAL CONTRACT CHARGES: An annual contract charge of $30 is deducted on
each Contract anniversary prior to the maturity date, upon full withdrawal of
a Contract's value or upon commencement of annuity payments if such
withdrawal is made or annuity payments commence on a date other than the
Contract anniversary.
OTHER CHARGES: A transfer charge computed as the lesser of 2% of the
Contract value transferred or $25 will be imposed on each transfer between
accounts in excess of twelve in any one calendar year. A withdrawal charge
may be imposed in the event of withdrawal of any portion of the contract
value or upon annuitization. The withdrawal charge is 8% of the amount
withdrawn prior to the first anniversary of any purchase payment and reduces
by 1% at each subsequent purchase payment anniversary.
PREMIUM TAXES: Premium taxes are deductible, where applicable, from the
purchase payment or Contract value. The amount and timing of the deduction
depend on the annuitant's state of residence and currently ranges up to 4% of
premiums.
NOTE 4 - PURCHASES AND SALES OF INVESTMENT SECURITIES
The aggregate cost of purchases and proceeds from sales of investments were
as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998
____________________________
PURCHASES SALES
____________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Fully Managed Series $9,624 $1,355
Rising Dividends Series 51,527 19,952
Small Cap Series 8,246 2,656
Multiple Allocation Series 1,182 164
Hard Assets Series 425 19
Real Estate Series 385 82
All-Growth Series 781 388
Capital Appreciation Series 2,002 307
Value Equity Series 286 42
Strategic Equity Series 309 131
Growth Opportunities Series 2,664 2,473
Developing World Series 946 216
Mid-Cap Growth Series 44,788 15,656
Research Series 127,660 39,466
Total Return Series 72,857 4,635
Growth & Income Series 30,641 8,788
Value + Growth Series 29,385 11,589
Global Fixed Income Series 5,424 5,781
Limited Maturity Bond Series 51,261 7,010
Liquid Asset Series 87,725 54,227
Equi-Select Series Trust:
Money Market Portfolio 86,796 122,381
Mortgage-Backed Securities Portfolio 8,562 25,785
Advantage Portfolio 8,835 26,440
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Series 3,596 1,506
PIMCO StocksPLUS Growth and Income Series 12,759 6,790
Warburg Pincus Trust:
International Equity Portfolio 17,162 14,768
Travelers Series Fund Inc.:
Smith Barney Large Cap Value Portfolio 44,353 3,358
Smith Barney International Equity Portfolio 6,693 1,528
Smith Barney High Income Portfolio 9,275 2,435
Smith Barney Money Market Portfolio 30,717 34,501
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 44,307 843
Smith Barney Concert
Allocation Series Inc.:
Select High Growth Portfolio 18,596 1,315
Select Growth Portfolio 31,845 1,396
Select Balanced Portfolio 30,984 1,648
Select Conservative Portfolio 9,676 1,109
Select Income Portfolio 6,263 1,784
____________________________
COMBINED $898,537 $422,524
============================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1997
____________________________
PURCHASES SALES
____________________________
(DOLLARS IN THOUSANDS)
<S> <C> <C>
The GCG Trust:
Fully Managed Series $8,852 $290
Rising Dividends Series 33,452 4,369
Small Cap Series 12,148 1,650
Multiple Allocation Series -- --
Hard Assets Series -- --
Real Estate Series -- --
All-Growth Series -- --
Capital Appreciation Series -- --
Value Equity Series -- --
Strategic Equity Series -- --
Growth Opportunities Series -- --
Developing World Series -- --
Mid-Cap Growth Series 55,386 12,742
Research Series 124,116 11,674
Total Return Series 79,757 1,933
Growth & Income Series 60,425 5,941
Value + Growth Series 45,481 4,478
Global Fixed Income Series 7,088 2,620
Limited Maturity Bond Series -- --
Liquid Asset Series -- --
Equi-Select Series Trust:
Money Market Portfolio 104,149 87,621
Mortgage-Backed Securities Portfolio 8,725 1,629
Advantage Portfolio 12,290 9,124
PIMCO Variable Insurance Trust:
PIMCO High Yield Bond Series -- --
PIMCO StocksPLUS Growth and Income Series -- --
Warburg Pincus Trust:
International Equity Portfolio 27,123 4,349
Travelers Series Fund Inc.:
Smith Barney Large Cap Value Portfolio 42,878 456
Smith Barney International Equity Portfolio 13,045 181
Smith Barney High Income Portfolio 11,885 804
Smith Barney Money Market Portfolio 32,473 23,622
Greenwich Street Series Fund Inc.:
Appreciation Portfolio 23,837 69
Smith Barney Concert
Allocation Series Inc.:
Select High Growth Portfolio 20,498 356
Select Growth Portfolio 29,749 78
Select Balanced Portfolio 28,437 52
Select Conservative Portfolio 7,504 342
Select Income Portfolio 2,914 268
____________________________
COMBINED $792,212 $174,648
============================
</TABLE>
NOTE 5 - SUMMARY OF CHANGES FROM UNIT TRANSACTIONS
Contractowners' transactions shown in the following table reflect gross
inflows ("Purchases") and outflows ("Sales") in units for each Account.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1998
____________________________
PURCHASES SALES
____________________________
<S> <C> <C>
Fully Managed Account 415,506 65,524
Rising Dividends Account 2,298,686 924,156
Small Cap Account 618,642 193,209
Multiple Allocation Account 51,481 7,827
Hard Assets Account 25,039 1,191
Real Estate Account 15,745 4,199
All-Growth Account 60,683 35,292
Capital Appreciation Account 82,324 13,981
Value Equity Account 15,786 2,297
Strategic Equity Account 21,564 9,439
Growth Opportunities Account 270,682 263,087
Developing World Account 111,903 30,064
Mid-Cap Growth Account 1,879,776 780,588
Research Account 5,268,372 1,920,639
Total Return Account 3,511,941 259,576
Growth & Income Account 1,734,756 568,098
Value + Growth Account 1,765,516 815,520
Global Fixed Income Account 395,321 451,759
Limited Maturity Bond Account 3,039,891 411,898
Liquid Asset Account 6,141,878 3,803,497
Money Market Account 7,569,194 10,747,917
Mortgage-Backed Securities Account 611,798 2,038,976
Advantage Account 670,856 2,176,599
PIMCO High Yield Bond Account 355,691 154,763
PIMCO StocksPLUS Growth and Income Account 1,297,234 723,512
International Equity Account 1,634,599 1,373,413
Smith Barney Large Cap Value Account 2,168,737 168,260
Smith Barney International Equity Account 464,869 104,400
Smith Barney High Income Account 550,700 168,562
Smith Barney Money Market Account 2,711,312 3,083,869
Appreciation Account 2,735,366 47,380
Select High Growth Account 1,597,345 111,607
Select Growth Account 2,714,011 114,641
Select Balanced Account 2,654,996 128,467
Select Conservative Account 839,363 93,236
Select Income Account 549,282 155,185
____________________________
COMBINED 56,850,845 31,952,628
============================
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31
1997
____________________________
PURCHASES SALES
____________________________
<S> <C> <C>
Fully Managed Account 445,585 15,573
Rising Dividends Account 1,786,818 225,115
Small Cap Account 1,013,794 128,770
Multiple Allocation Account -- --
Hard Assets Account -- --
Real Estate Account -- --
All-Growth Account -- --
Capital Appreciation Account -- --
Value Equity Account -- --
Stategic Equity Account -- --
Growth Opportunities Account -- --
Developing World Account -- --
Mid-Cap Growth Account 2,986,261 763,994
Research Account 6,629,166 633,673
Total Return Account 5,022,503 132,764
Growth & Income Account 3,939,022 468,665
Value + Growth Account 3,422,916 334,897
Global Fixed Income Account 511,014 213,732
Limited Maturity Bond Account -- --
Liquid Asset Account -- --
Money Market Account 9,788,350 8,382,113
Mortgage-Backed Securities Account 637,610 141,260
Advantage Account 988,376 805,145
PIMCO High Yield Bond Account -- --
PIMCO StocksPLUS Growth and Income Account -- --
International Equity Account 2,309,409 427,281
Smith Barney Large Cap Value Account 2,652,067 19,906
Smith Barney International Equity Account 939,196 10,039
Smith Barney High Income Account 935,447 61,286
Smith Barney Money Market Account 3,064,438 2,270,529
Appreciation Account 1,684,041 3,346
Select High Growth Account 1,899,205 32,872
Select Growth Account 2,774,943 7,330
Select Balanced Account 2,672,747 4,406
Select Conservative Account 702,940 31,706
Select Income Account 275,346 24,505
____________________________
COMBINED 57,081,194 15,138,907
============================
</TABLE>
NOTE 6 - NET ASSETS
Investments at net asset value at December 31, 1998 consisted of the
following:
<TABLE>
<CAPTION>
Fully Rising Small Multiple
Managed Dividends Cap Allocation
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $15,114 $58,409 $16,377 $926
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 1,842 5,788 632 88
Net unrealized appre-
ciation (depreciation)
of investments (941) 2,188 3,129 (56)
_______________________________________________________
$16,015 $66,385 $20,138 $958
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Hard Real All- Capital
Assets Estate Growth Appreciation
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $377 $270 $393 $1,555
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 26 18 (93) 131
Net unrealized appre-
ciation (depreciation)
of investments (62) (36) 92 (12)
_______________________________________________________
$341 $252 $392 $1,674
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Value Strategic Growth Developing
Equity Equity Opportunities World
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $240 $168 $204 $735
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 4 4 (134) (63)
Net unrealized appre-
ciation (depreciation)
of investments 3 1 3 (76)
_______________________________________________________
$247 $173 $73 $596
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Mid-Cap Total Growth &
Growth Research Return Income
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $97,913 $245,021 $181,334 $93,197
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 17,063 38,529 19,790 11,672
Net unrealized appre-
ciation (depreciation)
of investments 17,880 41,225 20,284 11,922
_______________________________________________________
$132,856 $324,775 $221,408 $116,791
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Global Limited
Value + Fixed Maturity Liquid
Growth Income Bond Asset
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $68,388 $10,906 $43,166 $32,951
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 7,156 1,338 1,229 547
Net unrealized appre-
ciation (depreciation)
of investments 10,433 147 (327) --
_______________________________________________________
$85,977 $12,391 $44,068 $33,498
=======================================================
</TABLE>
<TABLE>
<CAPTION>
PIMCO
PIMCO StocksPLUS Smith Barney
High Yield Growth and International Large Cap
Bond Income Equity Value
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $2,041 $5,860 $43,994 $101,814
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (34) (166) 1,901 3,597
Net unrealized appre-
ciation (depreciation)
of investments 19 680 (2,992) 14,115
_______________________________________________________
$2,026 $6,374 $42,903 $119,526
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Smith Barney Smith Barney Smith Barney
International High Money
Equity Income Market Appreciation
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $28,828 $24,396 $7,968 $68,170
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (382) 1,996 787 4,871
Net unrealized appre-
ciation (depreciation)
of investments 1,458 (215) -- 7,076
_______________________________________________________
$29,904 $26,177 $8,755 $80,117
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Select
High Select Select Select
Growth Growth Balanced Conservative
Account Account Account Account
_______________________________________________________
(Dollars in thousands)
<S> <C> <C> <C> <C>
Unit transactions $37,788 $60,486 $57,724 $15,688
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments (151) (186) 223 169
Net unrealized appre-
ciation (depreciation)
of investments 3,679 5,655 3,318 470
_______________________________________________________
$41,316 $65,955 $61,265 $16,327
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Select
Income
Account Combined
_________________________
(Dollars in thousands)
<S> <C> <C>
Unit transactions $7,111 $1,329,512
Accumulated net investment
income (loss) and net
realized gain (loss) on
investments 152 118,344
Net unrealized appre-
ciation (depreciation)
of investments 124 139,184
_________________________
$7,387 $1,587,040
=========================
</TABLE>
NOTE 7 - UNIT VALUES
Accumulation unit value information for units outstanding as of December 31,
1998 was as follows:
<TABLE>
<CAPTION>
TOTAL UNIT
ACCOUNT UNITS UNIT VALUE VALUE
____________________________________________________________________________
(IN THOUSANDS)
<S> <C> <C> <C>
Fully Managed 779,994 $20.53 $16,015
Rising Dividends 2,936,233 22.61 66,385
Small Cap 1,310,457 15.37 20,138
Multiple Allocation 43,654 21.94 958
Hard Assets 23,848 14.28 341
Real Estate 11,546 21.74 252
All-Growth 25,391 15.43 392
Capital Appreciation 68,343 24.50 1,674
Value Equity 13,489 18.31 247
Strategic Equity 12,125 14.23 173
Growth Opportunities 7,595 9.65 73
Developing World 81,839 7.28 596
Mid-Cap Growth 5,924,179 22.43 132,856
Research 14,188,466 22.89 324,775
Total Return 12,496,442 17.72 221,408
Growth & Income 6,865,903 17.01 116,791
Value + Growth 5,276,364 16.29 85,977
Global Fixed Income 946,714 13.09 12,391
Limited Maturity Bond 2,627,993 16.77 44,068
Liquid Asset 2,338,381 14.33 33,498
PIMCO High Yield Bond 200,928 10.08 2,026
PIMCO StocksPLUS Growth and Income 573,722 11.11 6,374
International Equity 4,170,018 10.29 42,903
Smith Barney Large Cap Value 6,212,287 19.24 119,526
Smith Barney International Equity 2,094,601 14.28 29,904
Smith Barney High Income 1,927,035 13.58 26,177
Smith Barney Money Market 770,258 11.37 8,755
Appreciation 4,865,715 16.47 80,117
Select High Growth 3,352,071 12.33 41,316
Select Growth 5,366,983 12.29 65,955
Select Balanced 5,194,870 11.79 61,265
Select Conservative 1,417,361 11.52 16,327
Select Income 644,938 11.45 7,387
_____________ ______________
COMBINED 92,769,743 $1,587,040
============= ==============
</TABLE>
<PAGE>
<PAGE>
