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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 8 (File No. 33-54471) X
and/or
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT
OF 1940
Amendment No. 9 (File No. 811-7195) X
AMERICAN ENTERPRISE VARIABLE ANNUITY ACCOUNT
___________________________________________________________________
(Exact Name of Registrant)
American Enterprise Life Insurance Company
___________________________________________________________________
(Name of Depositor)
80 South 8th Street, P.O. Box 534, Minneapolis, MN 55440-0534
(Address of Depositor's Principal Executive Offices) (Zip Code)
Depositor's Telephone Number, including Area Code (612) 671-4085
Sherilyn K. Beck, IDS Tower 10, Minneapolis, MN 55440-0010
(Name and Address of Agent for Service)
Approximate Date of Proposed Public Offering
It is proposed that this filing will become effective (check
appropriate box)
immediately upon filing pursuant to paragraph (b) of Rule 485
on (date) pursuant to paragraph (b) of Rule 485
60 days after filing pursuant to paragraph (a)(1) of Rule 485
X on Oct. 30, 1997 pursuant to paragraph (a)(1) of Rule 485
If appropriate, check the following box:
this post-effective amendment designates a new effective date
for a previously filed post-effective amendment.
The Registrant has registered an indefinite number or amount of
securities under the Securities Act of 1933 pursuant to Section
24-f of the Investment Company Act of 1940. Registrant's Rule 24f-
2 Notice for its most recent fiscal year ended was filed on or
about February 19, 1997.
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CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Cross reference sheet showing location in the prospectus and Statement of Additional
Information of the information called for by the items enumerated in Part A and B of
Form N-4.
Negative answers omitted from prospectus and Statement of Additional Information are
so indicated.
PART A PART B
Section in
Section Statement of
Item No. in Prospectus Item No. Additional Information
<S> <C> <C> <C>
1 Cover page 15 Cover page
2 Key terms 16 Table of contents
3(a) Expense summary 17(a) NA
(b) In brief (b) NA
(c) About American Enterprise Life*
4(a) NA
(b) Performance information 18(a) NA
(c) Financial statements (b) NA
(c) Independent auditors
(d) NA
5(a) About American (e) NA
Enterprise Life (f) NA
(b) The variable account
(c) The funds 19(a) Making the most of your annuity*
(d) Cover page and the funds (b) NA
(e) Voting rights
(f) NA 20(a) Principal underwriter
(b) Principal underwriter
6(a) Charges (c) NA
(b) Expense summary (d) NA
(c) Other information on (d) NA
charges
(d) Distribution of 21(a) Performance information
contracts (b) Performance information
(e) NA
(f) NA 22 Calculating Annuity Payouts
7(a) Buying your annuity; 23(a) NA
Benefits in case of (b) NA
death; The annuity
payout period
(b) The variable account;
Transferring money between
accounts; Transfer policies
(c) The funds; Other information
on charges
(d) The funds
8(a) The annuity payout period
(b) Setting the retirement date
(c) Annuity payout plans
(d) The annuity payout period
(e) Annuity payout plans
(f) Death after annuity payouts
begin
9(a) Benefits in case of death
(b) Benefits in case of death
10(a) Buying your annuity;
Valuing your investment
(b) Valuing your investment
(c) Valuing your investment
(d) About American Enterprise
Life
11(a) Withdrawals from your contract
(b) NA
(c) Receiving payment when you
request a withdrawal <PAGE>
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(d) If installment payments
(e) Ten-day free look
12(a) Taxes
(b) Key terms
(c) NA
13 NA
14 Table of contents of the
Statement of Additional Information
*Designates section in the prospectus, which is hereby incorporated by reference
in this Statement of Additional Information.
/TABLE
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AEL Personal PortfolioSM/________________________________
__________________, 1997
Variable Annuity Prospectus
The flexible premium variable annuity contracts described in the
prospectus are offered by American Enterprise Life Insurance
Company (American Enterprise Life), a subsidiary of IDS Life
Insurance Company (IDS Life), which is a subsidiary of American
Express Financial Corporation (AEFC). Purchase payments may be
allocated among different accounts, providing variable and/or fixed
returns and payouts. The annuities are available for individual
retirement annuities (IRAs), simplified employee pension plans
(SEPs) and nonqualified retirement plans.
American Enterprise Variable Annuity Account
Sold by: American Enterprise Life Insurance Company.
Administrative Office: 80 South Eighth Street, P.O. Box 534,
Minneapolis, MN 55440-0534. Telephone: 800-333-3437.
This prospectus contains information about the variable account
that you should know before investing. Refer to "The variable
account" in this prospectus.
The prospectus is accompanied or preceded by the following
prospectuses: AIM Variable Insurance Funds, Inc.; GT Global
Variable Investment Funds; IDS Life Retirement Annuity Mutual
Funds; Janus Aspen Series; OCC Accumulation Trust, formerly known
as Quest for Value Accumulation Trust; Oppenheimer Trust; Putnam
Variable Trust, formerly known as Putnam Capital Manager Trust.
Please read these documents carefully and keep them for future
reference.
These securities have not been approved or disapproved by the
Securities and Exchange Commission, or any state securities
commission, nor has the Securities and Exchange Commission or any
state securities commission passed upon the accuracy or adequacy of
this prospectus. Any representation to the contrary is a criminal
offense.
American Enterprise Life is not a bank or financial institution,
and the securities it offers are not deposits or obligations of, or
guaranteed or endorsed by any bank or financial institution nor are
they insured by the Federal Deposit Insurance Corporation, the
Federal Reserve Board or any other agency. Investments in the
annuity involve investment risk including the possible loss of
principal.
A Statement of Additional Information (SAI) dated
_________________, 1997, (incorporated by reference into this
prospectus) and filed with the Securities and Exchange Commission
(SEC), is available without charge by contacting American
Enterprise Life at the telephone number above or by completing and
sending the order form on the last page of this prospectus. The
table of contents of the SAI is on the last page of this
prospectus.
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Table of contents
Key terms.......................................................
The annuities in brief..........................................
Expense summary.................................................
Financial statements............................................
Performance information.........................................
The variable account............................................
The funds.......................................................
AIM V.I. Growth and Income Fund............................
AIM V.I. International Equity Fund.........................
AIM V.I. Value Fund........................................
GT Global Variable Latin America Fund......................
GT Global Variable New Pacific Fund........................
IDS Life Aggressive Growth Fund............................
IDS Life Capital Resource Fund.............................
IDS Life Growth Dimensions Fund............................
IDS Life International Equity Fund.........................
IDS Life Managed Fund......................................
IDS Life Moneyshare Fund...................................
IDS Life Special Income Fund...............................
Janus Aspen Series Balanced Portfolio......................
Janus Aspen Series Worldwide Growth Portfolio..............
OCC Accumulation Trust Equity Portfolio....................
OCC Accumulation Trust Managed Portfolio...................
OCC Accumulation Trust Small Cap Portfolio.................
OCC Accumulation Trust U.S. Government Income Portfolio....
Oppenheimer Variable Account Growth Fund...................
Oppenheimer Variable Account High Income Fund..............
Putnam VT Diversified Income Fund..........................
Putnam VT Growth and Income Fund...........................
Putnam VT High Yield Fund..................................
Putnam VT New Opportunities Fund...........................
The fixed account...............................................
Buying your annuity.............................................
The retirement date........................................
Beneficiary................................................
How to make payments.......................................
Charges.........................................................
Contract administrative charge.............................
Variable account administrative charge.....................
Mortality and expense risk fee.............................
Withdrawal charge..........................................
Waiver of withdrawal charge................................
Premium taxes..............................................
Valuing your investment.........................................
Number of units............................................
Accumulation unit value....................................
Net investment factor......................................
Factors that affect variable subaccount
accumulation units.....................................
Making the most of your annuity.................................
Automated dollar-cost averaging............................
Transferring money between subaccounts.....................
Transfer policies..........................................
Two ways to request a transfer or a withdrawal.............
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Withdrawals from your contract..................................
Withdrawal policies........................................
Receiving payment when you request a withdrawal............
Changing ownership..............................................
Benefits in case of death.......................................
The annuity payout period.......................................
Annuity payout plans.......................................
Death after annuity payouts begin..........................
Taxes...........................................................
Voting rights...................................................
Substitution of investments.....................................
Distribution of the contracts...................................
About American Enterprise Life..................................
Regular and special reports.....................................
Services..................................................
Table of contents of the Statement of Additional
Information...............................................
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Key terms
These terms can help you understand details about your annuity.
Accumulation unit - A measure of the value of each variable
subaccount before annuity payouts begin.
Annuitant - The person on whose life or life expectancy the annuity
payouts are based.
Annuity - A contract purchased from an insurance company that
offers tax-deferred growth of the investment until earnings are
withdrawn, and that can be tailored to meet the specific needs of
the individual during retirement.
Annuity payouts - An amount paid at regular intervals under one of
several plans available to the owner and/or any other payee. This
amount may be paid on a variable or fixed basis.
Annuity unit - A measure of the value of each variable subaccount
used to calculate the annuity payouts you receive.
Beneficiary - The person designated to receive annuity benefits in
case of the owner's or annuitant's death.
Close of business - When the New York Stock Exchange (NYSE) closes,
normally 3 p.m. Central time.
Code - Internal Revenue Code of 1986, as amended.
Contract value - The total value of your annuity before any
applicable withdrawal charge and any contract administrative charge
have been deducted.
Contract year - A period of 12 months, starting on the effective
date of your contract and on each anniversary of the effective
date.
Fixed account - An account to which you may allocate purchase
payments. Amounts allocated to this account earn interest at rates
that are declared periodically by American Enterprise Life.
Funds - funds or portfolios, each with a different investment
objective. You may allocate your purchase payments into variable
subaccounts investing in shares of any or all of these funds (See
"The Funds").
Owner (you, your) - The person who controls the annuity (decides on
investment allocations, transfers, payout options, etc.). Usually,
but not always, the owner is also the annuitant. The owner is
responsible for taxes, regardless of whether he or she receives the
annuity's benefits.
Purchase payments - Payments made to American Enterprise Life for
an annuity.
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Qualified annuity - An annuity purchased for one of the following
retirement plans that is subject to applicable federal law and any
rules of the plan itself:
o Individual Retirement Annuities (IRAs)
o Simplified Employee Pension Plans (SEPs)
All other annuities are considered nonqualified annuities.
Retirement date - The date when annuity payouts are scheduled to
begin. This date is first established when you start your
contract. You can change it in the future.
Systematic Investment Plan (SIP) - A payment method you set up with
your bank to automatically make monthly investments to your annuity
from your bank account.
Valuation date - Any normal business day, Monday through Friday,
that the NYSE is open. The value of each variable subaccount is
calculated at the close of business on each valuation date.
Variable account - Consists of separate subaccounts to which you
may allocate purchase payments; each subaccount invests in shares
of one fund. (See "The variable account.") The value of your
investment in each variable subaccount changes with the performance
of the particular fund.
Withdrawal charge - A deferred sales charge that may be applied if
you make a withdrawal from your annuity before the retirement date.
Withdrawal value - The amount you are entitled to receive if you
fully withdraw your annuity. It is the contract value minus any
applicable withdrawal charge and contract administrative charge.
The annuities in brief
Purpose: Each annuity is designed to allow you to accumulate money
for retirement. You do this by making one or more investments
(purchase payments) that may earn returns that increase the value
of the annuity. Beginning at a specified future date (the
retirement date), the annuity provides lifetime or other forms of
payouts to you or to anyone you designate.
Ten-day free look: You may return your annuity to your agent or to
our Minneapolis administrative offices within 10 days after it is
delivered to you and receive a full refund of the contract value.
No charges will be deducted. However, you bear the investment risk
from the time of purchase until return of the contract; the refund
amount may be more or less than the payment you made. (Exceptions:
If the law so requires, all of your purchase payments will be
refunded.)
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Accounts: You may allocate your purchase payments among any or all
of:
o subaccounts of the variable account, each of which invests in
a fund with a particular investment objective. The value of
each variable subaccount varies with the performance of the
particular fund in which it invests. We cannot guarantee that
the value at the retirement date will equal or exceed the
total of purchase payments allocated to the variable
subaccounts. (p. )
o one fixed account, which earns interest at a rate that is
adjusted periodically by American Enterprise Life. (p. )
Buying the annuity: Your agent will help you complete and submit
an application. Applications are subject to acceptance at our
Minneapolis administrative offices. You may buy a nonqualified
annuity or a qualified annuity. Payment must be made in a lump sum
with the option of additional payments in the future. In some
states there are time limitations for making additional payments.
(p. )
o Minimum initial payment - $2,000
o Minimum additional payment - $50
o Maximum total payment(s)-$1,000,000
(without prior approval)
Transfers: Subject to certain restrictions you may redistribute
your money among accounts without charge at any time until annuity
payouts begin, and once per contract year among the variable
subaccounts thereafter. You may establish automated transfers
among the fixed account and variable subaccount(s). (p. )
Withdrawals: You may withdraw all or part of your contract value
at any time before the retirement date. You also may establish
automated partial withdrawals. Withdrawals may be subject to
charges and tax penalties (including a 10% IRS penalty if
withdrawals are made prior to your reaching age 59 1/2) and may
have other tax consequences; also, certain restrictions apply.
(p. )
Changing ownership: You may change ownership of a nonqualified
annuity by written instruction. However, such changes of
nonqualified annuities may have federal income tax consequences.
Certain restrictions apply concerning change of ownership of a
qualified annuity. (p. )
Payment in case of death: If you or the annuitant die before
annuity payouts begin, we will pay the beneficiary an amount at
least equal to the contract value. (p. )
Annuity payouts: The contract value of your investment can be
applied to an annuity payout plan that begins on the retirement
date. You may choose from a variety of plans to make sure that
payouts continue as long as they are needed. If you purchased a
qualified annuity, the payout schedule must meet requirements of
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the qualified plan. Payouts may be made on a fixed or variable
basis, or both. Total monthly payouts may include amounts from
each variable subaccount and the fixed account. (p. )
Taxes: Generally, your annuity grows tax-deferred until you fully
withdraw it or begin to receive payouts. (Under certain
circumstances, IRS penalty taxes may apply.) Even if you direct
payouts to someone else, you will be taxed on the income if you are
the owner. (p. )
Charges: Your annuity is subject to a $30 annual contract
administrative charge, a 0.15% variable account administrative
charge, a 1.25% mortality and expense risk fee, a withdrawal charge
and any premium taxes that may be imposed by state or local
governments. Premium taxes are deducted upon total withdrawal or
when annuity payouts begin. (p. )
Expense summary
The purpose of this table is to help you understand the various
costs and expenses associated with your annuity.
You pay no sales charge when you purchase your annuity. All costs
that you bear directly or indirectly for the variable subaccounts
and underlying funds are shown below. Some expenses may vary as
explained under "Contract charges."
Contract Owner Expenses:*
Withdrawal Charge (contingent deferred sales charge as percent of
purchase payment)
Contract years from Withdrawal Charge
payment receipt Percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
Annual Contract Administrative Charge $30
Variable Account Annual Expenses
Variable Account Administrative Charge
(as a percentage of daily net assets of
the underlying fund).............................0.15%
Mortality and Expense Risk Fee
(as a percentage of daily net assets of
the underlying fund).............................1.25%
Total Variable Account Annual Expenses...........1.40%
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Annual Operating Expenses of Underlying Mutual Funds
(management fees and other expenses deducted as a percentage of
average net assets as follows:)
<TABLE>
<CAPTION>
GT Global GT Global
Variable Variable
AIM V.I. AIM V.I. Latin America New Pacific IDS Life IDS Life IDS Life
Growth and International AIM V.I. (after expense (after expense Aggressive Capital Growth
Income Equity Value reimbursement) reimbursement) Growth Resource Dimensions
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Management fees .65% .75% .64% 1.00% 1.00% .60% .60% .63%
Other expenses .13 .21 .09 .17 .12 .09 .08 .22
Total .78%+ .96%+ .73%+ 1.17%++ 1.12%++ .69%** .68%** .85%**
Janus Aspen
Janus Aspen Series OCC OCC***
Series Worldwide Accumulation Accumulation
IDS Life IDS Life Balanced Growth Trust Equity Trust Managed
International IDS Life IDS Life Special (after expense (after expense (after expense (after expense
Equity Managed Moneyshare Income reimbursement) reimbursement) limitations) limitations)
Management fees .82% .59% .50% .59% .79% .66% .80% .80%
Other expenses .16 .07 .06 .10 .15 .14 .13 .10
Total .98%** .66%** .56%** .69%** .94%+++ .80%+++ .93%*** .90%***
OCC OCC***
Accumulation Accumulation Oppenheimer Oppenheimer
Trust Small Trust U.S. Gov- Variable Account Variable Account
Cap ernment Income Growth High Income Putnam VT Putnam VT
(after expense (after expense (after expense (after expense Diversified Growth and Putnam VT Putnam VT New
limitations) limitations) reimbursements) reimbursements) Income Income High Yield Opportunities
Management fees .80% .60% .75% .75% .70% .49% .68% .63%
Other expenses .13 .42 .04 .06 .13 .05 .08 .09
Total .93%*** 1.02%*** .79%# .81%# .83%+ .54%+ .76%+ .72%+
*Premium taxes imposed by some state and local governments are not reflected in this table.
**Annualized operating expenses of underlying funds at Dec. 31, 1996.
***The annual expenses of the OCC Accumulation Trust Portfolios (the "Portfolios") as of Dec. 31, 1996 have been restated to
reflect new management fee and expense limitation agreements in effect as of May 1, 1996. Additionally, Other Expenses are
shown gross of certain expense offsets afforded the Portfolios which effectively lowered overall custody expenses. Effective
May 1, 1996, the expenses of the portfolios were contractually limited by OpCap Advisors so that their respective annualized
operating expenses (net of any expense offsets) do not exceed 1.25% of their respective average daily net assets. Furthermore,
through Dec. 31, 1997, the annualized operating expenses of the Managed and U.S. Government Income Portfolios will be
voluntary limited by OpCap Advisors so that annualized operating expenses (net of any expense offsets) of these Portfolios do
not exceed 1.00% of their respective average daily net assets. Without such contractual and voluntary expense limitations, and
without giving effect to any expense offsets, the Management Fees, Other Expenses and Total Portfolio Annual Expenses incurred
for the fiscal year ended Dec. 31, 1996 would have been, .60%, 1.74% and 2.34%, respectively, for the U.S. Government Income
Portfolio; .80%, .10% and .90%, respectively, for the Managed Portfolio; .80%, .25% and 1.05%, respectively, for the Income
Portfolio; and .80%, .21% and 1.01%, respectively, for the Small Cap Portfolio.
+Operating expenses of the underlying funds at Dec. 31, 1996.
++Figures in the "Other Expenses" and "Total" columns are restated from the amounts you would have incurred in 1996 to reflect fee
and reimbursement or waiver arrangements. If there had been no reimbursement of expenses by Chancellor LGT Asset Management and
no expense reductions, the actual expenses of each fund, expressed as a percentage of net assets, with "Management fees" stated
first, then "Other expenses," followed by "Total," would have been as follows: GT Global Variable Latin America Fund, 1.00%,
0.42%, 1.42%; and GT Global Variable New Pacific Fund, 1.00%, 0.40%, 1.40%.
+++The figures given above are based on gross expenses before expense offset arrangements, if any, during 1996, for these funds.
As of the date of this prospectus, certain fees are being waived or expenses are being assumed by the respective investment
managers or service providers for certain of the underlying funds, in each case on a voluntary basis. Without such
waivers or reimbursements, the "Management fees", "Other expenses" and "Total" that would have been incurred for the last
completed fiscal year would be: .77%, .14 and .91%, respectively, for Janus Aspen Series Worldwide Growth and .92%, .15% and
1.07%, respectively, for Janus Aspen Series Balanced. See the Portfolios' prospectuses for a discussion of fee waiver and
expense reimbursements.
# Operating expenses of the underlying funds before expense reimbursements, if any, during 1996. In the absence of a voluntary
one-time fee reimbursement, the "Management Fees", "other expenses" and "Total" would have been as follows: .75%, .06 and .81%,
respectively, for Oppenheimer Growth Fund and .75%, .06 and .81%, respectively, for Oppenheimer High Income Fund. See the Funds
Statement of Additional Information for a description of the reimbursement.
</TABLE>
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<TABLE>
<CAPTION>
Example:*
AIM V.I. AIM V.I. GT Global GT Global IDS Life IDS Life IDS Life
Growth and International AIM V.I. Variable Variable Aggressive Capital Growth
Income Equity Value Latin America New Pacific Growth Resource Dimensions
You would pay the following expenses on a $1,000 investment, assuming 5% annual return and full withdrawal at the end of each time
period:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1 year $ 93.59 $ 95.35 $ 93.10 $ 97.39 $ 96.91 $ 92.71 $ 92.61 $ 94.28
3 years 122.63 127.90 121.15 134.00 132.55 119.98 119.68 124.68
5 years 154.22 163.00 151.77 173.11 170.72 149.80 149.31 157.65
10 years 265.33 282.75 260.43 302.62 297.93 256.49 255.50 272.15
You would pay the following expenses on the same investment assuming no withdrawal or selection of an annuity payout plan at the
end of each time period:
1 year $ 23.59 $ 25.35 $ 23.10 $ 27.39 $ 26.91 $ 22.71 $ 22.61 $ 24.28
3 years 72.69 77.90 71.15 84.00 82.55 69.98 69.68 74.68
5 years 124.22 133.00 121.77 143.11 140.72 119.80 119.31 127.65
10 years 265.33 282.75 260.43 302.62 297.93 256.49 255.50 272.15
Janus Janus Aspen
IDS Life IDS Life Aspen Series OCC OCC
International IDS Life IDS Life Special Series Worldwide Accumulation Accumulation
Equity Managed Moneyshare Income Balanced Growth Trust Equity Trust Managed
You would pay the following expenses on a $1,000 investment, assuming 5% annual return and full withdrawal at the end of each time
period:
1 year $ 95.55 $ 92.42 $ 91.44 $ 92.71 $ 95.16 $ 93.79 $ 95.06 $ 94.77
3 years 128.48 119.09 116.13 119.98 127.31 123.21 127.02 126.14
5 years 163.96 148.32 143.37 149.80 162.03 155.20 161.54 160.08
10 years 284.67 253.52 243.54 256.49 280.84 267.29 279.88 276.99
You would pay the following expenses on the same investment assuming no withdrawal or selection of an annuity payout plan at the
end of each time period:
1 year $ 25.55 $ 22.42 $ 21.44 $ 22.71 $ 25.16 $ 23.79 $ 25.06 $ 24.77
3 years 78.48 69.09 66.13 69.98 77.31 73.21 77.02 76.14
5 years 133.96 118.32 113.37 119.80 132.03 125.20 131.54 130.08
10 years 284.67 253.52 243.54 256.49 280.84 267.29 279.88 276.99
OCC OCC*** Oppenheimer Oppenheimer
Accumulation Accumulation Variable Variable Putnam VT Putnam VT
Trust Small Trust U.S. Gov- Account Account Diversified Growth and Putnam VT Putnam VT New
Cap ernment Income Growth High Income Income Income High Yield Opportunities
You would pay the following expenses on a $1,000 investment, assuming 5% annual return and full withdrawal at the end of each time
period:
1 year $ 95.06 $ 95.94 $ 93.69 $ 93.89 $ 94.08 $ 91.24 $ 93.40 $ 93.01
3 years 127.02 129.64 122.92 123.51 124.09 115.54 122.04 120.86
5 years 161.54 165.90 154.71 155.69 156.67 142.37 153.24 151.28
10 years 279.88 288.48 266.31 268.26 270.21 241.53 263.38 259.45
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You would pay the following expenses on the same investment assuming no withdrawal or selection of an annuity payout plan at the
end of each time period:
1 year $ 25.06 $ 25.94 $ 23.69 $ 23.89 $ 24.08 $ 21.24 $ 23.40 $ 23.01
3 years 77.02 79.64 72.92 73.51 74.09 65.54 72.04 70.86
5 years 131.54 135.90 124.71 125.69 126.67 112.37 123.24 121.28
10 years 279.88 288.48 266.31 268.26 270.21 241.53 263.38 259.45
</TABLE>
This example should not be considered a representation of past or
future expenses. Actual expenses may be more or less than those
shown.
* In this example, the $30 annual contract administrative charge is
approximated as a .177% charge based on the average contract size.
Financial Statements
The SAI dated ________________, 1997 contains:
the audited financials of the variable account including:
- - statements of net assets as of Dec. 31, 1996;
- - statements of operations for the year ended Dec. 31, 1996;
- - statements of changes in net assets for the year ended Dec.
31, 1996 and for the period from Feb. 21, 1995 (commencement
of operations) to Dec. 31, 1995.
the audited financial statements of American Enterprise Life
including:
- - balance sheets as of Dec. 31, 1996 and Dec. 31 1995; and
- - related statements of income and cash flows for each of the
three years in the period ended Dec. 31, 1996.
The SAI does not include financial statements for subaccounts EGN,
EIN, EVA, EGD, ESB, EWG, EEQ, EGR, EHI because these are new
subaccounts and do not have a performance history.
Performance information
Performance information for the variable subaccounts may appear
from time to time in advertisements or sales literature. In all
cases, such information reflects the performance of a hypothetical
investment in a particular subaccount during a particular time
period.
The performance figures are calculated on the basis of historical
performance of the funds. The performance figures relating to
these funds assume that the annuities were offered prior to Jan.
12, 1995, which they were not. Before the subaccounts began
investing in these funds, the figures show what the performance
would have been if these subaccounts had existed during the
illustrated periods. Once these subaccounts began investing in
these funds, actual values are used for the calculations.
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PAGE 14
Calculations are performed as follows:
Simple yield - IDS Life Moneyshare Subaccount: Income over a given
seven-day period (not counting any change in the capital value of
the investment) is annualized (multiplied by 52) by assuming that
the same income is received for 52 weeks. This annual income is
then stated as an annual percentage return on the investment.
Compound yield - IDS Life Moneyshare Subaccount: Calculated like
simple yield, except that, when annualized, the income is assumed
to be reinvested. Compounding of reinvested returns increases the
yield as compared to a simple yield.
Yield - IDS Life Special Income Subaccount: Net investment income
(income less expenses) per accumulation unit during a given 30-day
period is divided by the value of the unit on the last day of the
period. The result is converted to an annual percentage.
Average annual total return: Expressed as an average annual
compounded rate of return of a hypothetical investment over a
period of one, five and 10 years (or up to the life of the account
if it is less than 10 years old). This figure reflects deduction
of all applicable charges, including the contract administrative
charge, variable account administrative charge, mortality and
expense risk fee and withdrawal charge, assuming a full
withdrawal at the end of the illustrated period. Optional average
annual total return quotations may be made that do not reflect a
withdrawal charge deduction (assuming no withdrawal).
Aggregate total return: Represents the cumulative change in the
value of an investment over a specified period of time (reflecting
change in a subaccount's accumulation unit value). The calculation
assumes reinvestment of investment earnings and reflects the
deduction of all applicable charges, including the contract
administrative charge, mortality and expense risk fee, variable
account administrative charge and withdrawal charge, assuming a
withdrawal at the end of the illustrated period. Optional
aggregate total return quotations may be made that do not reflect a
withdrawal charge deduction (assuming no withdrawal). Aggregate
total return may be shown by means of schedules, charts or graphs.
Performance information should be considered in light of the
investment objectives and policies, characteristics and quality of
the fund in which the subaccount invests and the market conditions
during the given time period. Such information is not intended to
indicate future performance. Because advertised yields and total
return figures include all annuity charges which has the effect of
decreasing advertised performance, subaccount performance should
not be compared to that of funds that sell their shares directly to
the public. (See the SAI for a further description of methods used
to determine yield and total return for the subaccounts.)
If you would like additional information about actual performance,
contact American Enterprise Life at the address or telephone number
on the cover.
<PAGE>
PAGE 15
The variable account
Purchase payments can be allocated to any or all of the subaccounts
of the variable account that invest in shares of the following
funds:
Subaccount
AIM V.I. Growth and Income Fund EGN
AIM V.I. International Equity Fund EIN
AIM V.I. Value Fund EVA
GT Global Variable Latin America Fund ELA
GT Global Variable New Pacific Fund EPA
IDS Life Aggressive Growth Fund EAG
IDS Life Capital Resource Fund ECR
IDS Life Growth Dimensions Fund EGD
IDS Life International Equity Fund EIE
IDS Life Managed Fund EMG
IDS Life Moneyshare Fund EMS
IDS Life Special Income Fund ESI
Janus Aspen Series Balanced Portfolio ESB
Janus Aspen Series Worldwide Growth Portfolio EWG
OCC Accumulation Trust Equity Portfolio EEQ
OCC Accumulation Trust Managed Portfolio EMD
OCC Accumulation Trust Small Cap Portfolio ESC
OCC Accumulation Trust U.S. Government
Income Portfolio EUS
Oppenheimer Variable Account Growth Fund EGR
Oppenheimer Variable Account High Income Fund EHI
Putnam VT Diversified Income Fund EDI
Putnam VT Growth and Income Fund EGI
Putnam VT High Yield Fund EHY
Putnam VT New Opportunities Fund ENO
Each variable subaccount meets the definition of a separate account
under federal securities laws. Income, capital gains and capital
losses of each subaccount are credited or charged to that
subaccount alone. No variable subaccount will be charged with
liabilities of any other variable account or of our general
business. Each variable subaccount's net assets are held in
relation to the contracts described in this prospectus as well as
other variable annuity contracts that we issue that are not
described in this prospectus.
The variable account was established under Indiana law on July 15,
1987, and the subaccounts are registered together as a single unit
investment trust under the Investment Company Act of 1940 (the 1940
Act). This registration does not involve any supervision of our
management or investment practices and policies by the SEC. All
obligations arising under the contracts are general obligations of
American Enterprise Life.
The funds
AIM V.I. Growth and Income Fund
Objective: growth of capital, with current income as a secondary
objective. The fund seeks to achieve its objective by generally <PAGE>
PAGE 16
investing at least 65% of its net assets in stocks of companies
believed by management to have the potential for above average
growth in revenues and earnings.
AIM V.I. International Equity Fund
Objective: long-term growth of capital. Invests in international
equity securities, the issuers of which are consdered by AIM to
have strong earnings momentum.
AIM V.I. Value Fund
Objective: long-term growth of capital. Invests primarily in
equity securities judged by AIM to be undervalued relative to the
current or projected earnings of the companies issuing the
securities or relative to the equity markets generally. Income is
a secondary objective.
GT Global Variable Latin America Fund
Objective: capital appreciation. Invests primarily in a broad
range of securities including common and preferred stock, rights,
warrants and securities convertible into common stock, as well as
bonds, notes, debentures or other forms of indebtedness of Latin
American issuers.
GT Global Variable New Pacific Fund
Objective: long-term growth of capital. Invests, under normal
circumstances, at least 65% of its assets in equity securities of
issuers domiciled in Australia, Hong Kong, Indonesia, Malaysia, New
Zealand, Pakistan, the Philippines, Singapore, South Korea, Taiwan
and Thailand.
IDS Life Aggressive Growth Fund
Objective: capital appreciation. Invests primarily in common stock
of small- and medium-size companies.
IDS Life Capital Resource Fund
Objective: capital appreciation. Invests primarily in U.S. common
stocks and other securities convertible into common stock,
diversified over many different companies in a variety of
industries.
IDS Life Growth Dimensions Fund
Objective: long-term growth of capital. Invests primarily in
common stocks of U.S. and foreign companies showing potential for
significant growth.
IDS Life International Equity Fund
Objective: capital appreciation. Invests primarily in common stock
of foreign issuers and foreign securities convertible into common
stock.
IDS Life Managed Fund
Objective: maximum total investment return. Invests primarily in
U.S. common stocks, securities convertible into common stock,
warrants, fixed income securities (primarily high-quality corporate
bonds) and money market instruments.
<PAGE>
PAGE 17
IDS Life Moneyshare Fund
Objective: maximum current income consistent with liquidity and
conservation of capital. Invests in high-quality money market
securities with remaining maturities of 13 months or less. The
fund also will maintain a dollar-weighted average portfolio
maturity not exceeding 90 days. The fund attempts to maintain a
constant net asset value of $1 per share.
IDS Life Special Income Fund
Objective: high level of current income while conserving the value
of the investment for the longest time period. Invests primarily
in high-quality, lower-risk corporate bonds issued by many
different companies in a variety of industries, and in government
bonds.
Janus Aspen Series Balanced Portfolio
Objective: long-term growth of capital, balanced by current income.
The Portfolio normally invests 40-60% of its assets in securities
selected primarily for their growth potential and 40-60% of its
assets in securities selected primarily for their income potential.
Janus Aspen Series Worldwide Growth Portfolio
Objective: long-term growth of capital in a manner consistent with
the preservation of capital. Invests primarily in common stocks of
foreign and domestic issuers.
OCC Accumulation Trust Equity Portfolio
Objective: long term capital appreciation. Invests in a
diversified portfolio of equity securities selected on the basis of
a value oriented approach to investing.
OCC Accumulation Trust Managed Portfolio
Objective: growth of capital over time. Invests primarily in
common stocks, bonds and money market and cash equivalent
securities, the percentages of which will vary based on
management's assessment of relative investment values.
OCC Accumulation Trust Small Cap Portfolio
Objective: capital appreciation. Invests in a diversified
portfolio of equity securities of companies with market
capitalizations of under $1 billion.
OCC Accumulation Trust U.S. Government Income Portfolio
Objective: high level of current income together with protection of
capital. Invests exclusively in debt obligations, including
mortgage-backed securities, issued or guaranteed by the United
States government, its agencies or instrumentalities.
Oppenheimer Variable Account Growth Fund
Objective: capital appreciation. Invests in securities of well-
known established companies.
Oppenheimer Variable Account High Income Fund
Objective: high level of current income. Invests in high yield,
high-risk, fixed-income securities, including unrated securities or
securities in the lower rating categories. These securities may be
considered to be speculative.
<PAGE>
PAGE 18
Putnam VT Diversified Income Fund
Objective: high current income consistent with capital preservation
by investing in the following three sectors of the fixed income
securities markets: a U.S. Government Sector, a High Yield Sector
(which invests primarily in securities commonly known as "junk
bonds") and an International Sector. Consult the Putnam Variable
Trust prospectus for further information on the risks associated
with this fund's investments in high yield higher-risk fixed income
securities.
Putnam VT Growth and Income Fund
Objective: capital growth and current income. Invests primarily in
common stocks that offer potential for capital growth, current
income, or both.
Putnam VT High Yield Fund
Objective: high current income and, when consistent with this
objective, a secondary objective of capital growth by investing
primarily in high-yielding, lower-rated fixed income securities
constituting a portfolio which Putnam Investment Management, Inc.
("Putnam Management") believes does not involve undue risk to
income or principal.
Putnam VT New Opportunities Fund
Objective: long-term capital appreciation by investing principally
in common stocks of companies in sectors of the economy which
Putnam Management believes possess above average long-term growth
potential.
More comprehensive information regarding each fund is contained in
that fund's prospectus. You should read the fund prospectus and
consider carefully, and on a continuing basis, which fund or
combination of funds is best suited to your long-term investment
needs. There is no assurance that the investment objectives of the
funds will be attained nor is there any guarantee that the contract
value will equal or exceed the total purchase payments made. Some
funds may involve more risk than others. Please monitor your
investment accordingly.
All funds are available to serve as the underlying investment for
variable annuities, and some funds also are available to serve as
the underlying investment for variable life insurance contracts and
qualified plans. It is conceivable that in the future it may be
disadvantageous for variable annuity separate accounts and variable
life insurance separate accounts and/or qualified plans to invest
in the available funds simultaneously.
Although American Enterprise Life and the funds do not currently
foresee any such disadvantages, the boards of directors or trustees
of the appropriate funds will monitor events in order to identify
any material conflicts between such contract owners, policy owners
and qualified plans and to determine what action, if any, should be
taken in response to a conflict. If a board were to conclude that
separate funds should be established for the variable annuity,
variable life insurance and qualified plan separate accounts, the
variable annuity contract holders would not bear any expenses
associated with establishing separate funds.
<PAGE>
PAGE 19
The Internal Revenue Service (IRS) has issued final regulations
relating to the diversification requirements under Section 817(h)
of the Code. Each fund intends to comply with these requirements.
The U.S. Treasury and the IRS have indicated that they may provide
additional guidance concerning how many variable subaccounts may be
offered and how many exchanges among variable subaccounts may be
allowed before the owner is considered to have investment control,
and thus is currently taxed on income earned within variable
subaccount assets. We do not know at this time what the additional
guidance will be or when action will be taken. We reserve the
right to modify the contract, as necessary, to ensure that the
owner will not be subject to current taxation as the owner of the
variable subaccount assets.
We intend to comply with all federal tax laws to ensure that each
contract continues to qualify as an annuity for federal income tax
purposes. We reserve the right to modify the contract as necessary
to comply with any new tax laws.
The investment managers for the funds are as follows:
o AIM V.I. Funds - A I M Advisors, Inc.
o GT Global Variable Funds - Chancellor LGT Asset Management.
o IDS Life Retirement Annuity Funds - IDS Life. American Express
Financial Corporation is the investment advisor for the IDS Life
Retirement Annuity Funds. IDS International, Inc., a
wholly-owned subsidiary of AEFC, is the sub-investment advisor
for IDS Life International Equity Fund.
o Janus Aspen Series Portfolios - Janus Capital Corporation.
o OCC Accumulation Trust Portfolios - OpCap Advisors.
o Oppenheimer Variable Accounts Funds - OppenheimerFunds, Inc.
o Putnam VT Funds - Putnam Investment Management, Inc., One Post
Office Square, Boston, MA 02109.
The investment managers and advisors cannot guarantee that the
funds will meet their investment objectives. Please read the
funds' prospectuses for complete information on investment risks,
deductions, expenses and other facts you should know before
investing. These prospectuses are available by contacting American
Enterprise Life at the administrative offices address or telephone
number on the front of this prospectus.
The fixed account
Purchase payments also may be allocated to the fixed account. The
value of the fixed account increases as interest is credited to the
account. Purchase payments and transfers to the fixed account
become part of the general account of American Enterprise Life, the
company's main portfolio of investments. Interest is credited and
compounded daily to produce an effective annual interest rate. We
may change the interest rate from time to time.
<PAGE>
PAGE 20
Because of exemptive and exclusionary provisions, interests in the
fixed account have not been registered under the Securities Act of
1933 (1933 Act), nor is the fixed account registered as an
investment company under the 1940 Act. Accordingly, neither the
fixed account nor any interests in it are generally subject to the
provisions of the 1933 or 1940 Acts, and we have been advised that
the staff of the SEC has not reviewed the disclosures in this
prospectus that relate to the fixed account. Disclosures regarding
the fixed account, however, may be subject to certain generally
applicable provisions of the federal securities laws relating to
the accuracy and completeness of statements made in prospectuses.
Buying your annuity
Your agent will help you prepare and submit your application, and
send it along with your initial purchase payment to our Minneapolis
administrative office. As the owner, you have all rights and may
receive all benefits under the contract. Your annuity can be owned
in joint tenancy only in spousal situations. You cannot buy a
nonqualified annuity or become an annuitant if you are 86 or older
(age 76 or older for qualified annuities). (In Pennsylvania, the
annuitant must be under age 81.)
When you apply, you may select:
o the fixed account and/or subaccount(s) in which you want to
invest;
o how you want to make purchase payments;
o the date you want to start receiving annuity payouts (the
retirement date); and
o a beneficiary.
If your application is complete, we will process it and apply your
purchase payment to the fixed account and subaccount(s) you
selected within two business days after we receive it at our
Minneapolis administrative offices. If your application is
accepted, we will send you a contract. If we cannot accept your
application within five business days, we will decline it and
return your payment. We will credit additional purchase payments
to your account(s) at the next close of business after we receive
and accept your payments at our Minneapolis administrative offices.
You may make monthly payments to your Annuity under a Systematic
Investment Plan (SIP). To begin the SIP, you will complete and
send a form and your first payment along with your application.
You can stop your SIP payments at any time. If your contract value
is less than $2,000 and you have not made any SIP payments for six
consecutive months, we have the right to give you 30 days written
notice that your balance has fallen below the $2,000 threshold. If
no additional payments are made to your annuity, we may pay you the
total value of your annuity and cancel your contract.
In most states, additional purchase payments may be made to
nonqualified and qualified annuities until the retirement date. In
Maryland and Washington, additional purchase payments may be made
to nonqualified annuities until the later of the annuitant's 63rd
birthday or the third contract anniversary, and additional purchase
payments may be made to qualified annuities until the annuitant's
63rd birthday.<PAGE>
PAGE 21
The retirement date
Annuity payouts will be scheduled to begin on the retirement date.
This date can be aligned with your actual retirement from a job, or
it can be a different future date, depending on your needs and
goals and on certain restrictions. You can also change the date,
provided you send us written instructions at least 30 days before
annuity payouts begin.
For nonqualified annuities, the retirement date must be:
o no earlier than the 60th day after the contract's effective
date; and
o no later than the annuitant's 85th birthday (or before the 10th
contract anniversary, if purchased after age 75); or
o no later than the annuitant's 82nd birthday (or before the
eighth contract anniversary, if purchased after age 74) for
annuities purchased in Pennsylvania.
For qualified annuities, to avoid IRS penalty taxes, the retirement
date generally must be:
o on or after the annuitant reaches age 59 1/2; and
o by April 1 of the year following the calendar year when the
annuitant reaches age 70 1/2.
If you are taking the minimum IRA distribution as required by the
Code from another tax-qualified investment, or in the form of
partial withdrawals from this annuity, annuity payouts can start as
late as the annuitant's 85th birthday or the 10th contract
anniversary. (In Pennsylvania, annuity payouts must start no later
than the annuitant's 82nd birthday or the eighth contract
anniversary.)
Beneficiary
If death benefits become payable before the retirement date, your
named beneficiary will receive all or part of the contract value.
If there is no named beneficiary, then you or your estate will be
the beneficiary. (See "Payment in case of death" for more about
beneficiaries.)
Minimum payment
Initial payment (includes SIPs): $2,000
Minimum additional purchase payment(s)(includes SIPs): $50
Maximum payment(s): $1,000,000 of cumulative payments without
prior approval
How to make payments
By letter
Send your check along with your name and contract number to:
<PAGE>
PAGE 22
Regular mail:
American Enterprise Life Insurance Company
80 South Eighth Street
P.O. Box 534
Minneapolis, MN 55440-0534
Express mail:
American Enterprise Life Insurance Company
Attention: Unit 829
733 Marquette Avenue
Minneapolis, MN 55402
By SIP:
Contact your agent to complete the necessary SIP paperwork.
Charges
Contract administrative charge
This fee is for establishing and maintaining your records. We
deduct $30 from the contract value on your contract anniversary at
the end of each contract year. We will waive this charge when the
contract value is $50,000 or more on the current contract
anniversary. If you take a full withdrawal from your contract, the
$30 annual charge will be deducted at the time of withdrawal
regardless of contract value. The annual charge cannot be
increased and does not apply after annuity payouts begin.
Variable account administrative charge
This charge is applied daily to the variable subaccounts and
reflected in the unit values of the subaccounts. Annually, it
totals 0.15% of their average daily net assets. It covers certain
administrative and operating expenses of the subaccounts such as
accounting, legal and data processing fees and expenses involved in
the preparation and distribution of reports and prospectuses. The
variable account administrative charge cannot be increased.
Mortality and expense risk fee
This fee is to cover the mortality risk and expense risk and is
applied daily to the variable subaccounts and reflected in the
accumulation unit values of the subaccounts. The subaccounts pay
this fee at the time dividends are distributed from the funds in
which they invest. Annually, the fee totals 1.25% of the
subaccounts' average daily net assets. Approximately two-thirds of
this amount is for our assumption of mortality risk, and one-third
is for our assumption of expense risk. This fee does not apply to
the fixed account.
Mortality risk arises because of our guarantee to pay a death
benefit and our guarantee to make annuity payouts according to the
terms of the contract, no matter how long a specific annuitant
lives and no matter how long the entire group of American
Enterprise Life annuitants live. If, as a group, American
Enterprise Life annuitants outlive the life expectancy we have <PAGE>
PAGE 23
assumed in our actuarial tables, then we must take money from
our general assets to meet our obligations. If, as a group,
American Enterprise Life annuitants do not live as long as
expected, we could profit from the mortality risk fee. Expense
risk arises because the contract administrative charge and variable
account administrative charge cannot be increased and may not cover
our expenses. Any deficit would have to be made up from our
general assets.
We may use any profits realized from the mortality and expense risk
fee for any proper corporate purpose, including, among others,
payment of distribution (selling) expenses. We do not expect that
the withdrawal charge, discussed in the following paragraphs, will
cover sales and distribution expenses.
Withdrawal charge
If you withdraw part or all of your contract, you may be subject to
a withdrawal charge. The withdrawal amount you request is
determined by drawing from your total contract value in the
following order:
1. First, we withdraw up to 10% of your prior anniversary contract
value not yet withdrawn this contract year. There is no withdrawal
charge on withdrawals totaling up to 10% of your prior anniversary
contract value each contract year.
2. Next, we withdraw any contract earnings (contract value minus
all purchase payments received and not previously withdrawn) in
excess of the annual 10% free withdrawal amount. There is no
withdrawal charge on contract earnings.
3. Next, if necessary, we withdraw purchase payments received
eight or more contract years before the withdrawal and not
previously withdrawn. There is no withdrawal charge on purchase
payments received eight or more contract years before withdrawal.
4. Finally, if necessary, we withdraw purchase payments received
in the seven contract years before the withdrawal. There is a
withdrawal charge on these payments. We determine your withdrawal
charges by multiplying each of these payments by the applicable
withdrawal charge percentage, and then totaling the withdrawal
charges.
There is a withdrawal charge on new payments. We determine your
withdrawal charge by multiplying each of your new payments by the
applicable withdrawal charge percentage, and then totaling the
withdrawal charges.
The withdrawal charge percentage depends on the number of contract
years since you made the payment(s).
<PAGE>
PAGE 24
Contract Years From Withdrawal Charge
Payment Receipt Percentage
1 7%
2 6%
3 5%
4 4%
5 3%
6 2%
7 1%
Thereafter 0%
Withdrawal charge calculation example
The following is an example of the calculation we would make to
determine the withdrawal charge on a contract with this history:
o The contract date is July 1, 1998 with a contract year of July
1 through June 30 and with an anniversary date of July 1 each
year; and
o We received these payments - $10,000 July 1, 1998, $8,000 Dec.
31, 2004 and $6,000 Feb. 20, 2006; and
o The owner withdraws the contract for its total withdrawal
value of $38,101 on Aug. 5, 2008 and had not made any other
withdrawals during that contract year; and
o The prior anniversary July 1, 2008 contract value was
$38,488.
Withdrawal Charge Explanation
$ 0 $3,848.80 is 10% of the prior anniversary
contract value withdrawn without withdrawal
charge; and
0 $10,252.20 is contract earnings in excess of
the 10% free withdrawal amount withdrawn
without withdrawal charge; and
$0 $10,000 July 1, 1998 payment was received eight
or more contract years before withdrawal and is
withdrawn without withdrawal charge; and
$240 $8,000 Dec. 31, 2004 is in its fifth contract
year from receipt, withdrawn with a 3%
withdrawal charge; and
$240 $6,000 Feb. 20, 2006 is in its fourth contract
year from receipt, withdrawn with a 4%
withdrawal charge.
__________
$480
The withdrawal charge is calculated so that the total amount minus
any withdrawal charge equals the amount you request. If you take a
full withdrawal from your contract, the $30 contract charge also
will be deducted.<PAGE>
PAGE 25
Waiver of withdrawal charge
There are no withdrawal charges for:
o withdrawals during the year totaling up to 10% of your prior
contract anniversary contract value;
o contract earnings - if any - in excess of the annual 10% free
withdrawal amount;
o required minimum distributions from a qualified annuity after
you reach age 70 1/2 (for those amounts required to be
distributed from the annuities described in this prospectus);
o contracts settled using an annuity payout plan; and
o death benefits.
If your contract includes a "Waiver of Withdrawal Charges" Annuity
Endorsement, or provision we will waive withdrawal charges that are
normally assessed upon full or partial withdrawal if you provide
proof satisfactory to us that, as of the date you request the
withdrawal, you or the annuitant are confined to a hospital or
nursing home and have been for the prior 60 days.
To qualify, the nursing home must meet the following criteria:
o be licensed by an appropriate licensing agency to provide
nursing care; and
o provide 24-hour-a-day nursing services; and
o have a doctor available for emergency situations; and
o have a nurse on duty or on call at all times; and
o maintain clinical records; and
o have appropriate methods for administering drugs.
To the extent permitted by state law, this endorsement is included
in contracts issued when the owner and annuitant are under age 76
on the date that we issue the contract.
Possible group reductions: In some cases lower sales and
administrative expenses may be incurred due to the size of the
group, the average contribution and the use of group enrollment
procedures. In such cases, we may be able to reduce or eliminate
the contract administrative and withdrawal charges. However, we
expect this to occur infrequently.
Premium taxes
Certain state and local governments impose premium taxes that may
reach to 3.5%. These taxes are dependent upon your state of
residence or the state in which the contract was sold. The
deduction is made when you fully withdraw your contract or when
annuity payouts begin.
Valuing your investment
Here is how your fixed account and variable subaccounts are valued:
Fixed account: The amounts allocated to the fixed account are
valued directly in dollars and equal the sum of your purchase
payments and transfer amounts plus interest earned, less any
amounts withdrawn or transferred and any contract administrative
charge.<PAGE>
PAGE 26
Variable subaccounts: Amounts allocated to the variable
subaccounts are converted into accumulation units. Each time you
make a purchase payment or transfer amounts into one of the
variable subaccounts, a certain number of accumulation units are
credited to your contract for that subaccount. Conversely, each
time you take a partial withdrawal, transfer amounts out of a
variable subaccount, or are assessed a contract administrative
charge, a certain number of accumulation units are subtracted from
your contract. Please remember that investment performance,
expenses, and deductions of certain charges affect accumulation
unit value.
The accumulation units are the true measure of investment value in
each subaccount during the accumulation period. They are related
to, but not the same as, the net asset value of the underlying
fund.
The dollar value of each accumulation unit can rise or fall daily
depending on the performance of the underlying fund and on certain
fund expenses. Here is how unit values are calculated:
Number of units
To calculate the number of accumulation units for a particular
subaccount, we divide your investment, after deduction of any
premium taxes, by the current accumulation unit value.
Accumulation unit value
The current accumulation unit value for each variable subaccount
equals the last value times the subaccount's current net investment
factor.
Net investment factor
Determined each business day by:
o adding the underlying fund's current net asset value per share
plus per-share amount of any current dividend or capital gain
distribution; then
o dividing that sum by the previous net asset value per share;
and
o subtracting the percentage factor representing the mortality
and expense risk fee and the variable account administrative
charge from the result.
Because the net asset value of the underlying fund may fluctuate,
the accumulation unit value may increase or decrease. You bear this
investment risk in a variable subaccount.
Factors that affect variable subaccount accumulation units
Accumulation units may change in two ways; in number and in value.
Here are the factors that influence those changes:
The number of accumulation units you own may fluctuate due to:
o additional purchase payments allocated to the variable
subaccount(s);
o transfers into or out of the variable subaccount(s);
<PAGE>
PAGE 27
o partial withdrawals;
o withdrawal charges; and/or
o contract administrative charges.
Accumulation unit values may fluctuate due to:
o changes in net asset value of underlying fund(s);
o dividends distributed to the variable subaccount(s);
o capital gains or losses of underlying fund(s);
o fund operating expenses;
o mortality and expense risk fees; and/or
o variable account administrative charges.
Making the most of your annuity
Automated dollar-cost averaging*
You can use automated transfers to take advantage of dollar-cost
averaging (investing a fixed amount at regular intervals). For
example, you might have a set amount transferred monthly from a
relatively conservative variable subaccount to a more aggressive
one, or to several others. The benefits of dollar cost averaging
also may be obtained by setting up regular automatic SIP payments.
This systematic approach can help you benefit from fluctuations in
accumulation unit values caused by fluctuations in the market
value(s) of the underlying fund(s). Since you invest the same
amount each period, you automatically acquire more units when the
market value falls, fewer units when it rises. The potential
effect is to lower your average cost per unit. For specific
features contact your agent.
<TABLE>
<CAPTION>
How dollar-cost averaging works
Month Amount Accumulation Number of units
invested unit value purchased
<S> <C> <C> <C> <C>
By investing an Jan $100 $20 5.00
equal number of
dollars each month.... Feb 100 18 5.56
Mar 100 17 5.88
you automatically Apr 100 15 6.67
buy more units
when the per unit May 100 16 6.25
market price is low....
Jun 100 18 5.56
Jul 100 17 5.88
Aug 100 19 5.26
and fewer units Sep 100 21 4.76
when the per unit
market price is Oct 100 20 5.00
high.
</TABLE>
You have paid an average price of only $17.91 per unit over the 10
months, while the average market price actually was $18.10.
Dollar-cost averaging does not guarantee that any variable
subaccount will gain in value nor will it protect against a decline
in value if market prices fall. Because this strategy involves <PAGE>
PAGE 28
continuous investing, your success with dollar-cost averaging will
depend upon your willingness to continue to invest regularly
through periods of low price levels. Dollar-cost averaging can be
an effective way to help meet your long-term goals.
* Some restrictions may apply.
Transferring money between subaccounts
You may transfer money from any one subaccount, or the fixed
account, to another before annuity payouts begin. (Certain
restrictions apply to transfers involving the fixed account.) If
we receive your request before the close of business, we will
process it that day. Requests received after the close of business
will be processed the next business day. There is no charge for
transfers. Before making a transfer, you should consider the risks
involved in switching investments.
We may suspend or modify transfer privileges at any time. The
right to transfer contract values between the subaccounts is
subject to modification if we determine, in our sole discretion,
that the exercise of that right by one or more contract owners is,
or would be, to the disadvantage of other contract owners. Any
modification could be applied to transfers to or from some or all
of the subaccounts. These modifications could include, but not be
limited to, the requirement of a minimum time period between each
transfer, not accepting transfer requests of an agent acting under
a power of attorney on behalf of more than one contract owner or
limiting the dollar amount that may be transferred between the
subaccounts and the fixed account by a contract owner at any one
time. We may apply these modifications or restrictions in any
manner reasonably designed to prevent any use of the transfer right
we consider to be to the disadvantage of other contract owners.
(For information on transfers after annuity payouts begin, see
"Transfer policies.")
Transfer policies
o You may transfer contract values between the variable
subaccounts or from the subaccount(s) to the fixed account at
any time. However, if you have made a transfer from the fixed
account to the subaccount(s), you may not make a transfer from
any subaccount back to the fixed account for six months
following that transfer.
o You may transfer contract values from the fixed account to the
variable subaccount(s) on or within 30 days before or after
the contract anniversary (except for automated transfers,
which can be set up for transfer periods of your choosing
subject to certain minimums).
o If we receive your request on or within 30 days before or
after the contract anniversary date, the transfer from the
fixed account to the variable subaccount(s) will be effective
on the day we receive it.
o We will not accept requests for transfers from the fixed
account at any other time.
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PAGE 29
o Once annuity payouts begin no transfers may be made to or from
the fixed account, but transfers may be made once per contract
year among the variable subaccounts.
Two ways to request a transfer or a withdrawal
1 By letter
Send your name, contract number, Social Security number or taxpayer
identification number and signed request for a transfer or
withdrawal to:
Regular mail:
American Enterprise Life Insurance Company
80 South Eighth Street
P.O. Box 534
Minneapolis, MN 55440-0534
Express mail:
American Enterprise Life Insurance Company
Attention: Unit 829
733 Marquette Avenue
Minneapolis, MN 55402
Minimum transfer or
withdrawal amount: $500 or entire variable subaccount or fixed
account balance
Maximum amount
Mail transfers: Contract Value
Mail withdrawals: Contract Value
2 By automated transfers and automated partial withdrawals
Your agent can help you set up automated transfers among your
subaccount(s) or fixed account or partial withdrawals from the
accounts.
You can start or stop this service by written request or other
method acceptable to American Enterprise Life. You must allow 30
days for American Enterprise Life to change any instructions that
are currently in place.
o Automated transfers may not exceed an amount that, if
continued, would deplete the fixed account or subaccount(s)
from which you are transferring within 12 months.
o Automated transfers and automated partial withdrawals are
subject to all of the contract provisions and terms, including
transfer of contract values between accounts. Automated
withdrawals may be restricted by applicable law under some
contracts.
o Automated partial withdrawals may result in IRS taxes and
penalties on all or part of the amount withdrawn.
<PAGE>
PAGE 30
Minimum amount
Automated transfers or withdrawals: $100 monthly/$250
quarterly, semiannually or
annually
Maximum amount
Automated transfers or withdrawals: Contract Value (except for
automated transfers from
the fixed account)
Withdrawals from your contract
As owner, you may withdraw all or part of your contract at any time
before annuity payouts begin by sending a written request to
American Enterprise Life. For total withdrawals we will compute
the value of your contract at the close of business after we
receive your request. We may ask you to return the contract. You
may have to pay withdrawal charges (see "Withdrawal charge") and
IRS taxes and penalties (see "Taxes"). No withdrawals may be made
after annuity payouts begin.
Withdrawal policies
If you have a balance in more than one account and request a
partial withdrawal, we will withdraw money from all your
subaccounts and/or the fixed account in the same proportion as your
value in each correlates to your total contract value, unless you
request otherwise.
Receiving payment when you request a withdrawal
By regular or express mail:
o Payable to owner.
o Normally mailed to address of record within seven days after
receiving your request. However, we may postpone the payment
if:
-the withdrawal amount includes a purchase payment check that
has not cleared;
-the NYSE is closed, except for normal holiday and weekend
closings;
-trading on the NYSE is restricted, according to SEC rules;
-an emergency, as defined by SEC rules, makes it impractical
to sell securities or value the net assets of the accounts; or
-the SEC permits us to delay payment for the protection of
security holders.
NOTE: You will be charged a fee if you request express mail
delivery.
Changing ownership
You may change ownership of your nonqualified annuity at any time
by filing a change of ownership on a form approved by us and sent
to our Minneapolis administrative offices. The change will become
binding upon us when we receive and record it. We will honor any
<PAGE>
PAGE 31
change of ownership request believed to be authentic and will use
reasonable procedures to confirm authenticity. If these procedures
are followed, we take no responsibility for the validity of the
change.
If you have a nonqualified annuity, you may lose your tax
advantages by transferring, assigning or pledging any part of it.
(See "Taxes.")
If you have a qualified annuity, you may not sell, assign,
transfer, discount or pledge your contract as collateral for a
loan, or as security for the performance of an obligation or for
any other purpose to any person except American Enterprise Life.
However, if the owner is a trust or custodian, or an employer
acting in a similar capacity, ownership of a contract may be
transferred to the annuitant.
Benefits in case of death
Your annuity includes one of the two death benefits described
below. Please see your contract, together with all endorsements,
for details of the benefit that applies.
If you or the annuitant die If you or the annuitant die
before annuitization while before annuitization while
this contract is in force, this contract is in force,
and both you and the annuitant and both you and the
were 75 or younger on the date annuitant are age 80 or
the annuity was issued and younger on the date of death,
all withdrawals you have made we will pay the beneficiary
from this contract have been the greatest of:
without withdrawal charges,
we will pay the beneficiary
the greatest of:
1. the contract value; or 1. the contract value; or
2. the total purchase payments 2. the total purchase
paid less any amounts withdrawn; payments paid less any
or "adjusted partial
withdrawals"; or
3. on or after the fifth contract
anniversary, the death benefit 3. the highest contract
as of the most recent fifth value on any prior
contract anniversary adjusted contract anniversary,
by adding any purchase payments plus any purchase
made since that most recent fifth payments paid and less
contract anniversary and by any "adjusted partial
subtracting any amounts withdrawn withdrawals" since that
since that most recent fifth contract anniversary.
contract anniversary.
For annuities where both you and The "adjusted partial
the annuitant were 75 or younger withdrawal" is calculated
on the date the annuity was for each partial with-
issued and you have made drawal as the product of
withdrawals subject to withdrawal (a) times (b) where:
charges, we will pay the <PAGE>
PAGE 32
beneficiary the contract value. (a) is the ratio of the
amount of the partial
For annuities where either you or withdrawal to the
the annuitant were 76 or older contract value
on the date the annuity was immediately before the
issued we will pay the partial withdrawal; and
beneficiary the contract value.
(b) is the death benefit
immediately before the
partial withdrawal.
If either you or the
annuitant is age 81 or
older on the date of
death, we will pay the
beneficiary the contract
value.
Example: Example:
The owner purchases an The owner purchases the
annuity contract for annuity for $20,000
$20,000 on Jan. 1, 1998. on Jan. 1, 1999.
On Jan. 1, 2003 the On Jan. 1, 2000
contract value has grown to the contract value
$33,000. On June 1, 2003 has grown to $24,000.
the owner takes a $1,500 On March 1, 2000 the
partial withdrawal, leaving contract value has
a contract value of $31,500. fallen to $22,000, at
On July 15, 2003, the owner which point the owner
makes an additional payment takes a $1,500 partial
of $1,000. On March 1, 2004, withdrawal, leaving
the contract value has fallen a contract value of
to $31,000. The death $20,500. The death
benefit on March 1, 2004 is benefit on March 1,
calculated as follows: 2000 is calculated as
follows:
The closest fifth
anniversary contract The highest contract
value: $33,000.00 value on any prior
contract
plus any purchase anniversary: $24,000.00
payments paid since
that anniversary: 1,000.00 plus any purchase
payments paid since
less any partial withdrawals that anniversary: + 0.00
taken since that
anniversary: 1,500.00 less any "adjusted
partial withdrawal"
for a death benefit taken since that
of: $32,500.00 anniversary,
calculated as:
1,500 x 24,000 = 1,636.36
22,000
for a death benefit
of: $22,363.64
<PAGE>
PAGE 33
If your spouse is sole beneficiary under a nonqualified annuity and
you die before the retirement date, your spouse may keep the
annuity as owner. To do this your spouse must, within 60 days
after we receive proof of death, give us written instructions to
keep the contract in force.
Under a qualified annuity, if the annuitant dies before annuity
payouts begin, and the spouse is the only beneficiary, the spouse
may keep the annuity as owner until the date on which the spouse
reaches age 70 1/2 or any other date permitted by the Code. To do
this, the spouse must give us written instructions within 60 days
after we receive proof of death.
Payments: We will pay the beneficiary in a single sum unless you
have given us other written instructions, or the beneficiary may
receive payouts under any annuity payout plan available under this
contract if:
o the beneficiary asks us in writing within 60 days after we
receive proof of death; and
o payouts begin no later than one year after death, or other date
as permitted by the Code; and
o the payout period does not extend beyond the beneficiary's life
or life expectancy.
When paying the beneficiary, we will determine the contract's value
at the next close of business after our death claim requirements
are fulfilled. Interest, if any, will be paid from the date of
death at a rate no less than required by law. We will mail payment
to the beneficiary within seven days after our death claim
requirements are fulfilled. (See "Taxes.")
The annuity payout period
As owner of the contract, you have the right to decide how and to
whom annuity payouts will be made starting at the retirement date.
You may select one of the annuity payout plans outlined below, or
we will mutually agree on other payout arrangements. The amount
available for payouts under the plan you select is the contract
value on your retirement date. No withdrawal charges are deducted
under the payout plans listed below.
You also decide whether annuity payouts are to be made on a fixed
or variable basis, or a combination of fixed and variable. Amounts
of fixed and variable payouts depend on:
o the annuity payout plan you select;
o the annuitant's age and, in most cases, sex;
o the annuity table in the contract; and
o the amounts you allocated to the account(s) at settlement.
In addition, for variable payouts only, amounts depend on the
investment performance of the subaccount(s) you select. These
payouts will vary from month to month because the performance of
the underlying funds will fluctuate. (In the case of fixed
annuities, payouts remain the same from month to month.)
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PAGE 34
For information with respect to transfers between accounts after
annuity payouts begin, see "Transfer policies."
Annuity payout plans
You may choose any one of these annuity payout plans by giving us
written instructions at least 30 days before contract values are to
be used to purchase the payout plan:
o Plan A - Life annuity - no refund: Monthly payouts are made
until the annuitant's death. Payouts end with the last payout
before the annuitant's death; no further payouts will be made.
This means that if the annuitant dies after only one monthly payout
has been made, no more payouts will be made.
o Plan B - Life annuity with five, 10 or 15 years certain: Monthly
payouts are made for a guaranteed payout period of five, 10 or 15
years that you elect. This election will determine the length of
the payout period to the beneficiary if the annuitant should die
before the elected period has expired. The guaranteed payout
period is calculated from the retirement date. If the annuitant
outlives the elected guaranteed payout period, payouts will
continue until the annuitant's death.
o Plan C - Life annuity - installment refund: Monthly payouts are
made until the annuitant's death, with our guarantee that payouts
will continue for some period of time. Payouts will be made for at
least the number of months determined by dividing the amount
applied under this option by the first monthly payout, whether or
not the annuitant is living.
o Plan D - Joint and last survivor life annuity - no refund:
Monthly payouts are made while both the annuitant and a joint
annuitant are living. If either annuitant dies, monthly payouts
continue at the full amount until the death of the surviving
annuitant. Payouts end with the death of the second annuitant.
o Plan E - Payouts for a specified period (available as a fixed
payout only): Monthly payouts are made for a specific payout
period of 10 to 30 years that you elect. Payouts will be made only
for the number of years specified whether the annuitant is living
or not. Depending on the time period selected, it is foreseeable
that an annuitant can outlive the payout period selected. In
addition, a 10% IRS penalty tax could apply under this payout plan.
(See "Taxes.")
Restrictions for some qualified plans: If you purchased a
qualified annuity, you must select a payout plan that provides for
payouts:
o over the life of the annuitant;
o over the joint lives of the annuitant and a designated
beneficiary;
o for a period not exceeding the life expectancy of the
annuitant; or
o for a period not exceeding the joint life expectancies
of the annuitant and a designated beneficiary.<PAGE>
PAGE 35
If we do not receive instructions: You must give us written
instructions for the annuity payouts at least 30 days before the
annuitant's retirement date. If you do not, we will make payouts
under Plan B, with 120 monthly payouts guaranteed.
If monthly payouts would be less than $20: We will calculate the
amount of monthly payouts at the time the contract value is used to
purchase a payout plan. If the calculations show that monthly
payouts would be less than $20, we have the right to pay the
contract value to the owner in a lump sum or to change the
frequency of the payouts.
Death after annuity payouts
If you or the annuitant die after annuity payouts begin, any amount
payable to the beneficiary will be provided in the annuity payout
plan in effect.
Taxes
Generally, under current law, any increase in your contract value
is taxable to you only when you receive a payout or withdrawal.
(However, see detailed discussion below.) Any portion of the
annuity payouts and any withdrawals you request that represent
ordinary income are normally taxable. You will receive a 1099 tax
information form for any year in which a taxable distribution was
made according to our records.
Annuity payouts under nonqualified annuities: A portion of each
payout will be ordinary income and subject to tax, and a portion of
each payout will be considered a return of part of your investment
and will not be taxed. All amounts received after your investment
in the annuity is fully recovered will be subject to tax.
Tax law requires that all nonqualified deferred annuity contracts
issued by the same company to the same owner during a calendar year
are to be taxed as a single, unified contract when distributions
are taken from any one of such contracts.
Annuity payouts under qualified annuities: Under a qualified
annuity, the entire payout generally will be includable as ordinary
income and subject to tax except to the extent that contributions
were made with after-tax dollars. If you or your employer invested
in your contract with pre-tax dollars as part of a qualified
retirement plan, such amounts are not considered to be part of your
investment in the contract and will be taxed when paid to you.
Withdrawals: If you withdraw part or all of your contract before
your annuity payouts begin, your withdrawal payment will be taxed
to the extent that the value of your contract immediately before
the withdrawal exceeds your investment. You also may have to pay a
10% IRS penalty for withdrawals made prior to age 59 1/2. For
qualified annuities, other penalties may apply if you make
withdrawals from your annuity before your plan specifies that you
can receive payouts.
<PAGE>
PAGE 36
Death benefits to beneficiaries: The death benefit under an
annuity is not tax-exempt. Any amount received by the beneficiary
that represents previously deferred income earnings within the
contract is taxable as ordinary income to the beneficiary in the
year(s) he or she receives the payments.
Annuities owned by corporations, partnerships or trusts: For
nonqualified annuities any annual increase in the value of
annuities held by such entities generally will be treated as
ordinary income received during that year. This provision is
effective for purchase payments made after Feb. 28, 1986. However,
if the trust was set up for the benefit of a natural person only,
the income will remain tax-deferred.
Penalties: If you receive amounts from your contract before
reaching age 59 1/2, you may have to pay a 10% IRS penalty on the
amount includable in your ordinary income. However, this penalty
will not apply to any amount received by you or your beneficiary:
o because of your death;
o because you become disabled (as defined in the Code);
o if the distribution is part of a series of substantially equal
periodic payments, made at least annually, over your life or
life expectancy (or joint lives or life expectancies of you and
your beneficiary); or
o if it is allocable to an investment before Aug. 14, 1982 (except
for qualified annuities).
For a qualified annuity, other penalties or exceptions may apply if
you make withdrawals from your annuity before your plan specifies
that payouts can be made.
Withholding, generally: If you receive all or part of the contract
value from an annuity, withholding may be imposed against the
taxable income portion of the payment. Any withholding that is
done represents a prepayment of your tax due for the year. You
take credit for such amounts on your annual tax return.
If the payment is part of an annuity payout plan, the amount of
withholding generally is computed using payroll tables. You may
provide us with a statement of how many exemptions to use in
calculating the withholding. As long as you've provided us with a
valid Social Security number or taxpayer identification number, you
may elect not to have any withholding occur.
If the distribution is any other type of payment (such as a partial
or full withdrawal) withholding is computed using 10% of the
taxable portion. Similar to above, as long as you have provided us
with a valid Social Security number or taxpayer identification
number, you may elect not to have this withholding occur.
Some states also may impose withholding requirements similar to the
federal withholding described above. If this should be the case,
any payment from which federal withholding is deducted may also
have state withholding deducted. The withholding requirements may
differ if payment is being made to a non-U.S. citizen or if the
payment is being delivered outside the United States.
<PAGE>
PAGE 37
Transfer of ownership of a nonqualified annuity: If you make such
a transfer without receiving adequate consideration, the transfer
is considered a gift, and also may be considered a withdrawal for
federal income tax purposes. If the gift is a currently taxable
event for income tax purposes, the amount of deferred earnings at
the time of the transfer will be taxed to the original owner, who
also may be subject to a 10% IRS penalty as discussed earlier. In
this case, the new owner's investment in the annuity will be the
value of the annuity at the time of the transfer.
Collateral assignment of a nonqualified annuity: If you
collaterally assign or pledge your contract, earnings on purchase
payments you made after Aug. 13, 1982 will be taxed to you like a
withdrawal.
Important: Our discussion of federal tax laws is based upon our
understanding of these laws as they are currently interpreted.
Federal tax laws or current interpretations of them may change.
For this reason and because tax consequences are complex and highly
individual and cannot always be anticipated, you should consult a
tax advisor if you have any questions about taxation of your
contract.
Tax qualification
Each contract is intended to qualify as an annuity for federal
income tax purposes. To that end, the provisions of the contracts
are to be interpreted to ensure or maintain such tax qualification,
notwithstanding any other provisions of the contract. We reserve
the right to amend the contract to reflect any clarifications that
may be needed or are appropriate to maintain such qualification or
to conform the contracts to any applicable changes in the tax
qualification requirements. We will send you a copy of any such
amendments.
Voting rights
As a contract owner with investments in the variable subaccount(s),
you may vote on important fund policies until annuity payouts
begin. Once they begin, the person receiving them has voting
rights. We will vote fund shares according to the instructions of
the person with voting rights.
Before annuity payouts begin, the number of votes you have is
determined by applying your percentage interest in each variable
subaccount to the total number of votes allowed to the subaccount.
After annuity payouts begin, the number of votes you have is equal
to:
o the reserve held in each subaccount for your contract;
o divided by the net asset value of one share of the applicable
underlying fund.
As we make annuity payouts, the reserve for the contract decreases;
therefore, the number of votes also will decrease.
<PAGE>
PAGE 38
We calculate votes separately for each account. Notice of these
meetings, proxy materials and a statement of the number of votes to
which the voter is entitled will be sent.
We will vote shares for which we have not received instructions in
the same proportion as the votes for which we have received
instructions. We also will vote the shares for which we have
voting rights in the same proportion as the votes for which we have
received instructions.
Substitution of investments
If shares of any fund should not be available for purchase by the
appropriate variable subaccount or if, in the judgment of American
Enterprise Life's Management, further investment in such shares is
no longer appropriate, another registered open-end management
investment company may be substituted for fund shares held in the
subaccount(s) when American Enterprise Life believes it would be in
the best interest of persons having voting rights under the
contract. American Enterprise Life also reserves the right to
change the funds in which the subaccounts invest and to create new
subaccounts that invest in additional funds.
In the event of any such substitution or change, American
Enterprise Life, without the consent or approval of the owners, may
amend the contract and take whatever action is necessary and
appropriate. However, no such substitution or change will be made
without the necessary approval of the SEC and state insurance
departments. American Enterprise Life will notify owners of any
substitution or change.
Distribution of the contracts
The contracts will be distributed by banks and financial
institutions either directly or through a network of third-party
marketers. American Express Financial Advisors Inc., the principal
underwriter for the variable account, will pay commissions for the
distribution of the contracts to the broker-dealers of the banks or
financial institutions or the broker-dealers of the third-party
marketers who have entered into distribution agreements with
American Express Financial Advisors. These commissions will not be
more than 7% of purchase payments received on the contracts.
From time to time, American Enterprise Life may pay or permit other
promotional incentives, in cash or credit or other compensation.
About American Enterprise Life
The annuities are issued by American Enterprise Life. American
Enterprise Life is a wholly-owned subsidiary of IDS Life, which is
a wholly-owned subsidiary of AEFC. AEFC is a wholly-owned
subsidiary of American Express Company. American Express Company
is a financial services company principally engaged through
subsidiaries (in addition to AEFC) in travel related services,
investment services and international banking services.
<PAGE>
PAGE 39
American Enterprise Life is a stock life insurance company
organized in 1981 under the laws of the state of Indiana. Its
administrative offices are located at 80 South Eighth Street,
Minneapolis, MN 55402. Its statutory address is 100 Capitol Center
South, 201 North Illinois Street, Indianapolis, IN 46204. American
Enterprise Life is licensed in the state of Indiana and it conducts
a conventional life insurance business.
American Express Financial Advisors Inc. is the principal
underwriter for the variable account. Its home office is IDS Tower
10, Minneapolis, MN 55440-0010. American Express Financial
Advisors is registered with the SEC under the Securities Exchange
Act of 1934 as a broker-dealer and is a member of the National
Association of Securities Dealers, Inc. American Express Financial
Advisors is a wholly owned subsidiary of AEFC.
The AEFC family of companies offers not only insurance and
annuities, but also funds, investment certificates and a broad
range of financial management services.
Other subsidiaries provide investment management and related
services for pension, profit-sharing, employee savings and
endowment funds of businesses and institutions.
Regular and special reports
Services
To help you track and evaluate the performance of your annuity,
American Enterprise Life provides:
Quarterly statements showing the value of your investment.
Annual reports containing required information on the annuity and
its underlying investments.
Table of contents of the Statement of Additional Information
Performance information...............................
Calculating annuity payouts...........................
Rating agencies.......................................
Principal underwriter.................................
Independent auditors..................................
Saving for retirement.................................
Prospectus............................................
Financial statements -
___________________________________________________________________
Please check the appropriate box to receive a copy of the Statement
of Additional Information for:
____ AEL Personal PortfolioSM/___________________________
____ AIM Variable Insurance Funds, Inc.
____ GT Global Variable Investment Funds
<PAGE>
PAGE 40
____ IDS Life Retirement Annuity Mutual Funds
____ Janus Aspen Series Funds
____ OCC Accumulation Trust Portfolios
____ Oppenheimer Variable Account Funds
____ Putnam Variable Trust
Mail your request to:
American Enterprise Life Insurance Company
80 South Eighth Street
P.O. Box 534
Minneapolis, MN 55440-0534
American Enterprise Life will mail your request to:
Your name _____________________________________________________
Address _______________________________________________________
City __________________________ State ____________ Zip ________
<PAGE>
PAGE 41
STATEMENT OF ADDITIONAL INFORMATION
for
AEL PERSONAL PORTFOLIOSM/_____________________
AMERICAN ENTERPRISE VARIABLE ANNUITY ACCOUNT
_________, 1997
American Enterprise Variable Annuity Account is a separate account
established and maintained by American Enterprise Life Insurance
Company (American Enterprise Life).
This Statement of Additional Information (SAI), dated _________,
1997, is not a prospectus. It should be read together with the
prospectus dated _________, 1997, which may be obtained from your
agent, or by writing or calling American Enterprise Life Insurance
Company at the address or telephone number below.
American Enterprise Life Insurance Company
Administrative Offices:
80 South Eighth Street
P.O. Box 534
Minneapolis, MN 55440-0534
800-333-3437
<PAGE>
PAGE 42
TABLE OF CONTENTS
Performance Information......................................
Calculating Annuity Payouts..................................
Rating Agencies..............................................
Principal Underwriter........................................
Independent Auditors.........................................
Saving for Retirement........................................
Prospectus...................................................
Financial Statements -
<PAGE>
PAGE 43
PERFORMANCE INFORMATION
The following performance figures are calculated on the basis of
historical performance of the funds. The performance figures
relating to these funds assume that the annuities were offered
prior to January 12, 1995, which it was not. Before the
subaccounts began investing in these funds, the figures show what
the subaccount performance would have been if these subaccounts had
existed during the illustrated periods. Once these subaccounts
began investing in these funds, actual values are used for the
calculations.
Calculation of Yield for the Subaccount investing in IDS Life
Moneyshare Fund.
Simple yield for the subaccount investing in the IDS Life
Moneyshare Fund will be based on the: (a) change in the value of a
hypothetical investment (exclusive of capital changes) at the
beginning of a seven-day period for which yield is to be quoted;
(b) subtracting a pro rata share of subaccount expenses accrued
over the seven-day period; (c) dividing the difference by the value
of the subaccount at the beginning of the period to obtain the base
period return; and (d) annualizing the results (i.e., multiplying
the base period return by 365/7).
The value of the hypothetical subaccount includes the amount of any
declared dividends, the value of any shares purchased with any
dividend paid during the period and any dividends declared for such
shares. The variable subaccount's yield does not include any
realized or unrealized gains or losses, nor does it include the
effect of any applicable surrender charge.
Calculation of compound yield begins with the same base period
return used in the calculation of yield, which is then annualized
to reflect compounding according to the following formula:
Compound Yield = [(Base Period Return + 1) 365/7 ] -1
Annualized Yield based on Seven-Day Period ended
__________, 1997
Subaccount investing in: Simple Yield Compound Yield
IDS Life Moneyshare Fund ____% ____%
Calculation of Yield for the Subaccount investing in IDS Life
Special Income Fund.
For the subaccount investing in the IDS Life Special Income Fund
quotations of yield will be based on all investment income 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 per accumulation unit by the value of an
accumulation unit on the last day of the period, according to the
following formula:
<PAGE>
PAGE 44
YIELD = 2[(a-b + 1)6 - 1]
cd
where: a = dividends and investment income earned during the
period
b = expenses accrued for the period (net of
reimbursements)
c = the average daily number of accumulation units
outstanding during the period that were entitled to
receive dividends
d = the maximum offering price per accumulation unit on
the last day of the period
Yield on the subaccount is earned from the increase in the net
asset value of shares of the fund in which the subaccount invests
and from dividends declared and paid by the fund, which are
automatically invested in shares of the fund.
Annualized yield based on 30-Day Period ended __________, 1997
Subaccount investing in: Yield
IDS Life Special Income ____%
Calculation of average annual total return
Quotations of average annual total return for a subaccount will be
expressed in terms of the average annual compounded rate of return
of a hypothetical investment in either annuity over a period of
one, five and 10 years (or, if less, up to the life of the
account), calculated according to the following formula:
P(1+T)n = ERV
where: P = a hypothetical initial payment of $1,000
T = average annual total return
n = number of years
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five, or
ten year (or other) period at the end of the one,
five, or 10 year (or other) period (or fractional
portion thereof)
<PAGE>
PAGE 45
Average Annual Total Return For Period Ended __________, 1997
<TABLE>
<CAPTION>
Average Annual Total Return with Withdrawal
Since
Subaccount investing in:* 1 Year 5 Year 10 Year Inception
<S> <C> <C> <C> <C>
AIM V.I.
Growth and Income Fund (5/94)
International Equity Fund (5/93)
Value Fund (5/93)
GT GLOBAL
Variable Latin America Fund (2/93)
Variable New Pacific Fund (2/93)
IDS LIFE
Aggressive Growth Fund (1/92)
Capital Resource Fund (10/81)
Growth Dimensions Fund (4/96)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
JANUS ASPEN SERIES
Balanced Portfolio (9/93)
Worldwide Growth Portfolio (9/93)
OCC ACCUMULATION TRUST
Equity Portfolio (9/94)
Managed Portfolio (8/88)
Small Cap Portfolio (9/94)
U.S. Government Income Portfolio (1/95)
OPPENHEIMER VARIABLE ACCOUNT
Growth Fund ( )
High Income Fund ( )
PUTNAM VT
Diversified Income Fund (9/93)
Growth and Income Fund (2/88)
High Yield Fund (2/88)
New Opportunities Fund (5/94)
* inception date of the funds are shown in parentheses.
Average Annual Total Return without Withdrawal
Since
Subaccount Investing in:* 1 Year 5 Year 10 Year Inception
AIM V.I.
Growth and Income Fund (5/94)
International Equity Fund (5/93)
Value Fund (5/94)
GT GLOBAL
Variable Latin America Fund (2/93)
Variable New Pacific Fund (2/93)
IDS Life
Aggressive Growth Fund (1/92)
Capital Resource Fund (10/81)
Growth Dimensions Fund (4/96)
International Equity Fund (1/92)
Managed Fund (4/86)
Moneyshare Fund (10/81)
Special Income Fund (10/81)
JANUS ASPEN SERIES
Balanced Portfolio (9/93)
Worldwide Growth Portfolio (9/93)
<PAGE>
PAGE 46
Average Annual Total Return without Withdrawal
Since
Subaccount Investing in:* 1 Year 5 Year 10 Year Inception
OCC ACCUMULATION TRUST
Equity Portfolio (9/94)
Managed Portfolio (8/88)
Small Cap Portfolio (9/94)
U.S. Government Income Portfolio (1/95)
OPPENHEIMER VARIABLE ACCOUNT
Growth Fund ( )
High Income Fund ( )
PUTNAM VT
Diversified Income Fund (9/93)
Growth and Income Fund (2/88)
High Yield Fund (2/88)
New Opportunities Fund (5/94)
*inception dates of the funds are shown in parentheses.
</TABLE>
Aggregate Total Return
Aggregate total return represents the cumulative change in value of
an investment for a given period (reflecting change in a
subaccount's accumulation unit value) and is computed by the
following formula:
ERV - P
P
where: P = a hypothetical initial payment of $1,000
ERV = Ending Redeemable Value of a hypothetical $1,000
payment made at the beginning of the one, five, or
10 year (or other) period at the end of the one,
five, or 10 year (or other) period (or fractional
portion thereof)
The Securities and Exchange Commission (SEC) requires that an
assumption be made that the contract owner withdraws the entire
contract at the end of the one, five and 10 year periods (or, if
less, up to the life of the subaccount) for which performance is
required to be calculated. In addition, performance figures may be
shown without the deduction of a withdrawal charge.
Total return figures reflect the deduction of all applicable
charges including the contract administrative charge, the variable
account administrative charge, and mortality and expense risk fee.
Performance of the subaccount may be quoted or compared to
rankings, yields, or returns as published or prepared by
independent rating or statistical services or publishers or
publications such as The Bank Rate Monitor National Index,
Barron's, Business Week, CDA Technologies, Donoghue's Money Market
Fund Report, Financial Services Week, Financial Times, Financial
World, Forbes, Fortune, Global Investor, Institutional Investor,
Investor's Daily, Kiplinger's Personal Finance, Lipper Analytical
Services, Money, Morningstar, Mutual Fund Forecaster, Newsweek, The
<PAGE>
PAGE 47
New York Times, Personal Investor, Stanger Report, Sylvia Porter's
Personal Finance, USA Today, U.S. News & World Report, The Wall
Street Journal and Wiesenberger Investment Companies Service.
CALCULATING ANNUITY PAYOUTS
The Variable Account
The following calculations are done separately for each of the
subaccounts of the variable account. The separate monthly payouts,
added together, make up your total variable annuity payout.
Initial Payout: To compute your first monthly payment, we:
o determine the dollar value of your annuity as of the valuation
date seven days before the retirement date and then deduct any
applicable premium tax; then
o apply the result to the annuity table contained in the contract
or another table at least as favorable. The annuity table shows
the amount of the first monthly payment for each $1,000 of value
which depends on factors built into the table, as described below.
Annuity Units: The value of your subaccount is then converted to
annuity units. To compute the number credited to you, we divide
the first monthly payment by the annuity unit value (see below) on
the valuation date on (or next day preceding) the seventh calendar
day before the retirement date. The number of units in your
subaccount is fixed. The value of the units fluctuates with the
performance of the underlying fund.
Subsequent Payouts: To compute later payouts, we multiply:
o the annuity unit value on the valuation date on or immediately
preceding the seventh calendar day before the payout is due; by
o the fixed number of annuity units credited to you.
Annuity Table: The table shows the amount of the first monthly
payment for each $1,000 of contract value according to the age and,
when applicable, the sex of the annuitant. (Where required by law,
we will use a unisex table of settlement rates.) The table assumes
that the contract value is invested at the beginning of the annuity
payout period and earns a 5% rate of return, which is reinvested
and helps to support future payouts.
Annuity Unit Values: This value was originally set at $1 for each
subaccount. To calculate later value we multiply the last annuity
value by the product of:
o the net investment factor; and
o the neutralizing factor. The purpose of the neutralizing factor
is to offset the effect of the assumed investment rate built into
the annuity table. With an assumed investment rate of 5%, the
neutralizing factor is 0.999866 for a one day valuation period.
<PAGE>
PAGE 48
Net Investment Factor:
This value is determined each business day by:
o adding the underlying fund's current net asset value per share
plus per share amount of any current dividend or capital gain
distribution; then
o dividing that sum by the previous net asset value per share; and
o subtracting the percentage factor representing the mortality and
expense risk fee from the result.
Because the net asset value of the underlying fund may fluctuate,
the net investment factor may be greater or less than one, and the
accumulation unit value may increase or decrease. You bear this
investment risk in a variable subaccount.
The Fixed Account
Your fixed annuity payout amounts are guaranteed. Once calculated,
your payout will remain the same and never change. To calculate
your annuity payouts we:
o take the value of your fixed account at the retirement date or
the date you have selected to begin receiving your annuity payouts;
then
o using an annuity table, we apply the value according to the
annuity payout plan you select; and
o the annuity payout table we use will be the one in effect at the
time you choose to begin your annuity payouts. The table will be
equal to or greater than the table in your contract.
RATING AGENCIES
The following chart reflects the ratings given to American
Enterprise Life by independent rating agencies. These agencies
evaluate the financial soundness and claims-paying ability of
insurance companies based on a number of different factors. This
information does not relate to the management or performance of the
variable subaccounts of the annuities. This information relates
only to the fixed account and reflects American Enterprise Life's
ability to make annuity payouts and to pay death benefits and other
distributions from the annuities.
Rating agency Rating
A.M. Best A+
(Superior)
Duff & Phelps AAA
Moody's Aa2
PRINCIPAL UNDERWRITER
The principal underwriter for the accounts is American Express
Financial Advisors Inc. which offers the variable contracts on a
continuous basis.<PAGE>
PAGE 49
INDEPENDENT AUDITORS
[To be filed by Amendment]
SAVING FOR RETIREMENT
You may have to save more for retirement because the average person
lives 17 years in retirement. Social security and pensions will
not cover your expenses in retirement. Sixty cents of every
retirement dollar must come from your personal savings.
Sources: Social Security Administration, U.S. Department of
Health and Human Services.
PROSPECTUS
The prospectus dated _________, 1997, is hereby incorporated in
this SAI by reference.
<PAGE>
PAGE 50
PART C.
Item 24. Financial Statements and Exhibits
(a) To be filed by Amendment.
(b) Exhibits:
1.1 Resolution of the Executive Committee of the Board of
Directors of American Enterprise Life establishing the
American Enterprise Variable Annuity Account dated July 15,
1987, filed electronically as Exhibit 1 to the Initial
Registration Statement to Registration Statement No. 33-54471,
filed on or about July 5, 1994 is incorporated herein by
reference.
1.2 Resolution of the Executive Committee of the Board of
Directors of American Enterprise Life establishing the ten
additional subaccounts within the separate account dated Aug.
21, 1997, is filed electronically herewith.
2. Not applicable.
3.1 Form of Variable Annuity and Life Insurance Distribution
Agreement, filed electronically as Exhibit 3.1 to Pre-
Effective Amendment No. 1 to Registration Statement No. 33-
54471 is incorporated herein by reference.
3.2 Form of Managing General Agent Agreement, filed electronically
as Exhibit 3.2 to Pre-Effective Amendment No. 1 to
Registration Statement No. 33-54471 is incorporated herein by
reference.
4.1 Form of Deferred Annuity Contract (form 34560), filed
electronically as Exhibit 4.1 to the Initial Registration
Statement to Registration Statement No. 33-54471, filed on or
about July 5, 1994 is incorporated herein by reference.
4.2 Form of Tax-Qualified Endorsement (form 34563), filed
electronically as Exhibit 4.2 to the Initial Registration
Statement to Registration Statement No. 33-54471, filed on or
about July 5, 1994 is incorporated herein by reference.
4.3 Form of Annuity Endorsement (form 34562), filed electronically
as Exhibit 4.3 to the Initial Registration Statement to
Registration Statement No. 33-54471, filed on or about July 5,
1994 is incorporated herein by reference.
5.1 Form of Application for American Enterprise Life Variable
Annuity (form 34561), filed electronically as Exhibit 5.1 to
the Initial Registration Statement to Registration Statement
No. 33-54471, filed on or about July 5, 1994 is incorporated
herein by reference.
6.1 Amendment and Restatement of Articles of Incorporation of
American Enterprise Life dated July 29, 1986, filed
electronically as Exhibit 6.1 to the Initial Registration
Statement to Registration Statement No. 33-54471, filed on or
about July 5, 1994 is incorporated herein by reference.<PAGE>
PAGE 51
6.2 Amended By-Laws of American Enterprise Life, filed
electronically as Exhibit 6.2 to the Initial Registration
Statement to Registration Statement No. 33-54471, filed on or
about July 5, 1994 is incorporated herein by reference.
7. Not applicable.
8.1 Copy of Participation Agreement among (company) and GT Global
Variable Investment Trust and GT Global Variable Investment
Series and GT Global Financial Services, Inc., dated February
10, 1995 is filed electronically as Exhibit 8.1 to Post-
Effective Amendment No. 3 to Registration Statement No. 33-
54471 is incorporated herein by reference.
8.2 Copy of Participation Agreement among Putnam Capital Manager
Trust, Putnam Mutual Funds Corp. and American Enterprise Life
Insurance Company, dated January 16, 1995, filed
electronically as Exhibit 8.2 to Post-Effective Amendment No.
2 to Registration Statement No. 33-54471 is incorporated
herein by reference.
8.3 Copy of Participation Agreement by and among Quest for Value
Accumulation Trust and (Insurance Company) and Quest for Value
Distributors, dated February 21, 1995, filed electronically as
Exhibit 8.3 to Post-Effective Amendment No. 2 to Registration
Statement No. 33-54471 is incorporated herein by reference.
8.4 Copy of Participation Agreement among (company) and
Oppenheimer Trust and American Enterprise Life Insurance
Company, dated ______________, 1997, to be filed by amendment.
8.5 Copy of Participation Agreement among (company) and AIM
Variable Insurance Funds and American Enterprise Life
Insurance Company, dated ______________, 1997, to be filed by
amendment.
8.6 Copy of Participation Agreement among (company) and Janus
Aspen Series, and American Enterprise Life Insurance Company,
dated ______________, 1997, to be filed by amendment.
8.7 Copy of Reinsurance Agreement, dated _____________, 1997, to
be filed by amendment.
9. Opinion of Counsel and consent to its use as to the legality
of the securities being registered was filed with Registrant's
most recent 24f-2 Notice on or about Feb. 19, 1997.
10. Consent of Independent Auditors, to be filed by amendment.
11. Financial Statement Schedules and Report of Independent
Auditors, to be filed by amendment.
12. Not applicable.
<PAGE>
PAGE 52
13. Copy of schedule for computation of each performance quotation
provided in the Registration Statement in response to Item 21,
filed electronically as Exhibit 13 to the Initial Registration
Statement to Registration Statement No. 33-54471, filed on or
about July 5, 1994 is incorporated herein by reference.
14. Financial Data Schedules, to be filed by amendment.
15. Power of Attorney to sign this Registration Statement dated
March 28, 1997, filed electronically as Exhibit 15 to Post-
Effective Amendment No. 7, to Registration Statement No. 33-
54471 is incorporated herein by reference.
Item 25. Directors and Officers of the Depositor (American
Enterprise Life Insurance Company)
<TABLE>
<CAPTION>
Positions and
Name Principal Business Address Offices with Depositor
<S> <C> <C>
James E. Choat IDS Tower 10 Director and Chief Executive
Minneapolis, MN 55440 Officer
Douglas L. Forsberg IDS Tower 10 Director and President
Minneapolis, MN 55440
Morris Goodwin Jr. IDS Tower 10 Vice President and Treasurer
Minneapolis, MN 55440
Lorraine R. Hart IDS Tower 10 Vice President - Investments
Minneapolis, MN 55440
Richard W. Kling IDS Tower 10 Director and Chairman of the
Minneapolis, MN 55440 Board
Paul S. Mannweiler Indianapolis Power and Light Director
One Monument Circle
P.O. Box 1595
Indianapolis, IN 46206-1595
Stuart A. Sedlacek IDS Tower 10 Director and Executive Vice
Minneapolis, MN 55440 President - Assured Assets
F. Dale Simmons IDS Tower 10 Vice President - Real Estate
Minneapolis, MN 55440 Loan Management
William A. Stoltzmann IDS Tower 10 Vice President, General Counsel
Minneapolis, MN 55440 and Secretary
Melinda S. Urion IDS Tower 10 Vice President and Controller
Minneapolis, MN 55440
</TABLE>
<PAGE>
PAGE 53
Item 26. Persons Controlled by or Under Common Control with the
Depositor or Registrant
American Enterprise Life Insurance is a wholly owned
subsidiary of IDS Life Insurance Company which is a
wholly owned subsidiary of American Express Financial
Corporation. American Express Financial Corporation is a
wholly owned subsidiary of American Express Company
(American Express).
The following list includes the names of major
subsidiaries of American Express.
Jurisdiction
Name of Subsidiary of Incorporation
I. Travel Related Services
American Express Travel Related
Services Company, Inc. New York
II. International Banking Services
American Express Bank Ltd. Connecticut
III. Companies engaged in American Express Financial Corporation
American Centurion Life Assurance Company New York
American Enterprise Investment Services Inc. Minnesota
American Enterprise Life Insurance Company Indiana
American Express Financial Advisors Inc. Delaware
American Express Financial Corporation Delaware
American Express Insurance Agency of Nevada Inc. Nevada
American Express Minnesota Foundation Minnesota
American Express Service Corporation Delaware
American Express Tax and Business Services Inc. Minnesota
American Express Trust Company Minnesota
American Partners Life Insurance Company Arizona
AMEX Assurance Company Illinois
IDS Advisory Group Inc. Minnesota
IDS Aircraft Services Corporation Minnesota
IDS Cable Corporation Minnesota
IDS Cable II Corporation Minnesota
IDS Capital Holdings Inc. Minnesota
IDS Certificate Company Delaware
IDS Deposit Corp. Utah
IDS Fund Management Limited U.K.
IDS Futures Corporation Minnesota
IDS Futures III Corporation Minnesota
IDS Insurance Agency of Alabama Inc. Alabama
IDS Insurance Agency of Arkansas Inc. Arkansas
IDS Insurance Agency of Massachusetts Inc. Massachusetts
IDS Insurance Agency of Mississippi Ltd. Mississippi
IDS Insurance Agency of New Mexico Inc. New Mexico
IDS Insurance Agency of North Carolina Inc. North Carolina
IDS Insurance Agency of Ohio Inc. Ohio
IDS Insurance Agency of Texas Inc. Texas
<PAGE>
PAGE 54
IDS Insurance Agency of Utah Inc. Utah
IDS Insurance Agency of Wyoming Inc. Wyoming
IDS International, Inc. Delaware
IDS Life Insurance Company Minnesota
IDS Life Insurance Company of New York New York
IDS Management Corporation Minnesota
IDS Partnership Services Corporation Minnesota
IDS Plan Services of California, Inc. Minnesota
IDS Property Casualty Insurance Company Wisconsin
IDS Real Estate Services, Inc. Delaware
IDS Realty Corporation Minnesota
IDS Sales Support Inc. Minnesota
IDS Securities Corporation Delaware
Investors Syndicate Development Corp. Nevada
Item 27. Number of Contractowners
On July 31, 1997, there were 1,240 contract owners of
qualified contracts and there were 750 owners of non-
qualified contracts.
Item 28. Indemnification
The By-Laws of the depositor provide that the Corporation
shall have the power to indemnify a director, officer,
agent or employee of the Corporation pursuant to the
provisions of applicable statues or pursuant to contract.
The Corporation may purchase and maintain insurance on
behalf of any director, officer, agent or employee of the
Corporation against any liability asserted against or
incurred by the director, officer, agent or employee in
such capacity or arising out of the director's,
officer's, agent's or employee's status as such, whether
or not the Corporation would have the power to indemnify
the director, officer, agent or employee against such
liability under the provisions of applicable law.
The By-Laws of the depositor provide that it shall
indemnify a director, officer, agent or employee of the
depositor pursuant to the provisions of applicable
statutes or pursuant to contract.
Insofar as indemnification for liability arising under
the Securities Act of 1933 may be permitted to director,
officers and controlling persons of the registrant
pursuant to the foregoing provisions, or otherwise, the
registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification
is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the
payment by the registrant of expenses incurred or paid by
a director, officer or controlling person of the
registrant in the successful defense of any action, suit
or proceeding) is asserted by such director, officer or
controlling person in connection with the securities
<PAGE>
PAGE 55
being registered, the registrant will, unless in the
opinion of its counsel the matter has been settled by
controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by
it is against public policy as expressed in the Act and
will be governed by the final adjudication of such issue.
<PAGE>
PAGE 56
Item 29. Principal Underwriters.
(a) American Express Financial Advisors acts as principal
underwriter for the following investment companies:
IDS Bond Fund, Inc.; IDS California Tax-Exempt Trust; IDS
Discovery Fund, Inc.; IDS Equity Select Fund, Inc.; IDS Extra
Income Fund, Inc.; IDS Federal Income Fund, Inc.; IDS Global
Series, Inc.; IDS Growth Fund, Inc.; IDS High Yield Tax-
Exempt Fund, Inc.; IDS International Fund, Inc.; IDS
Investment Series, Inc.; IDS Managed Retirement Fund, Inc.;
IDS Market Advantage Series, Inc.; IDS Money Market Series,
Inc.; IDS New Dimensions Fund, Inc.; IDS Precious Metals
Fund, Inc.; IDS Progressive Fund, Inc.; IDS Selective Fund,
Inc.; IDS Special Tax-Exempt Series Trust; IDS Stock Fund,
Inc.; IDS Strategy Fund, Inc.; IDS Tax-Exempt Bond Fund,
Inc.; IDS Tax-Free Money Fund, Inc.; IDS Utilities Income
Fund, Inc., Growth Trust; Growth and Income Trust; Income
Trust, Tax-Free Income Trust, World Trust and IDS Certificate
Company.
(b) As to each director, officer or partner of the principal
underwriter:
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Ronald G. Abrahamson Vice President- None
IDS Tower 10 Service Quality and
Minneapolis, MN 55440 Reengineering
Douglas A. Alger Vice President-Field None
IDS Tower 10 Compensation and
Minneapolis, MN 55440 Administration
Peter J. Anderson Senior Vice President- Vice
IDS Tower 10 Investments President
Minneapolis, MN 55440
Ward D. Armstrong Vice President- None
IDS Tower 10 American Express,
Minneapolis, MN 55440 Institutional Services
John M. Baker Vice President- None
Plan Sponsor Services
Joseph M. Barsky III Vice President-Senior None
IDS Tower 10 Portfolio Manager
Minneapolis, MN 55440
Robert C. Basten Vice President-Tax None
IDS Tower 10 and Business Services
Minneapolis, MN 55440
Timothy V. Bechtold Vice President-Risk None
IDS Tower 10 Management Products
Minneapolis, MN 55440<PAGE>
PAGE 57
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
John D. Begley Group Vice President- None
Suite 100 Ohio/Indiana
7760 Olentangy River Rd.
Columbus, OH 43235
Jack A. Benjamin Group Vice President- None
Suite 200 Greater Pennsylvania
3500 Market Street
Camp Hill, PA 17011
Alan F. Bignall Vice President- None
IDS Tower 10 Technology and
Minneapolis, MN 55440 Development
Brent L. Bisson Group Vice President- None
Suite 900 Los Angeles Metro
E. Westside Twr
11835 West Olympic Blvd.
Los Angeles, CA 90064
John C. Boeder Vice President- None
IDS Tower 10 Mature Market Group
Minneapolis, MN 55440
Walter K. Booker Group Vice President- None
Suite 200 New Jersey
3500 Market Street
Camp Hill, NJ 17011
Bruce J. Bordelon Group Vice President- None
Galleria One Suite 1900 Gulf States
Galleria Blvd.
Metairie, LA 70001
Charles R. Branch Group Vice President- None
Suite 200 Northwest
West 111 North River Dr
Spokane, WA 99201
Douglas W. Brewers Vice President- None
IDS Tower 10 Sales Support
Minneapolis, MN 55440
Karl J. Breyer Senior Vice President- None
IDS Tower 10 Corporate Affairs and
Minneapolis, MN 55440 Special Counsel
Daniel J. Candura Vice President- None
IDS Tower 10 Marketing Support
Minneapolis, MN 55440
<PAGE>
PAGE 58
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Cynthia M. Carlson Vice President- None
IDS Tower 10 American Express
Minneapolis, MN 55440 Securities Services
Orison Y. Chaffee III Vice President-Field None
IDS Tower 10 Real Estate
Minneapolis, MN 55440
James E. Choat Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
Kenneth J. Ciak Vice President and None
IDS Property Casualty General Manager-
1400 Lombardi Avenue IDS Property Casualty
Green Bay, WI 54304
Roger C. Corea Group Vice President- None
290 Woodcliff Drive Upstate New York
Fairport, NY 14450
Henry J. Cormier Group Vice President- None
Commerce Center One Connecticut
333 East River Drive
East Hartford, CT 06108
John M. Crawford Group Vice President- None
Suite 200 Arkansas/Springfield/Memphis
10800 Financial Ctr Pkwy
Little Rock, AR 72211
Kevin F. Crowe Group Vice President- None
Suite 312 Carolinas/Eastern Georgia
7300 Carmel Executive Pk
Charlotte, NC 28226
Colleen Curran Vice President and None
IDS Tower 10 Assistant General Counsel
Minneapolis, MN 55440
Regenia David Vice President- None
IDS Tower 10 Systems Services
Minneapolis, MN 55440
Luz Maria Davis Vice President- None
IDS Tower 10 Communications
Minneapolis, MN 55440
<PAGE>
PAGE 59
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Scott M. DiGiammarino Group Vice President- None
Suite 500 Washington/Baltimore
8045 Leesburg Pike
Vienna, VA 22182
Bradford L. Drew Group Vice President- None
Two Datran Center Eastern Florida
Penthouse One B
9130 S. Dadeland Blvd.
Miami, FL 33156
Gordon L. Eid Senior Vice President None
IDS Tower 10 and General Counsel
Minneapolis, MN 55440
Robert M. Elconin Vice President- None
IDS Tower 10 Government Relations
Minneapolis, MN 55440
Mark A. Ernst Vice President- None
IDS Tower 10 Retail Services
Minneapolis, MN 55440
Joseph Evanovich Jr. Group Vice President- None
One Old Mill Nebraska/Iowa/Dakotas
101 South 108th Avenue
Omaha, NE 68154
Louise P. Evenson Group Vice President- None
Suite 200 San Francisco Bay Area
1333 N. California Blvd.
Walnut Creek, CA 94596
Gordon M. Fines Vice President- None
IDS Tower 10 Mutual Fund Equity
Minneapolis MN 55440 Investments
Douglas L. Forsberg Vice President- None
IDS Tower 10 Institutional Products
Minneapolis, MN 55440 Group
Jeffrey P. Fox Vice President and None
IDS Tower 10 Corporate Controller
Minneapolis, MN 55440
William P. Fritz Group Vice President- None
Suite 160 Northern Missouri
12855 Flushing Meadows Dr
St. Louis, MO 63131
<PAGE>
PAGE 60
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Carl W. Gans Group Vice President- None
8500 Tower Suite 1770 Twin City Metro
8500 Normandale Lake Blvd.
Bloomington, MN 55437
John J. Golden Vice President- None
IDS Tower 10 Human Resources Planning
Minneapolis, MN 55440 and Field Support
Morris Goodwin Jr. Vice President and None
IDS Tower 10 Corporate Treasurer
Minneapolis, MN 55440
Bruce M. Guarino Group Vice President- None
Suite 1736 Hawaii
1585 Kapiolani Blvd.
Honolulu, HI 96814
David A. Hammer Vice President None
IDS Tower 10 and Marketing
Minneapolis, MN 55440 Controller
Teresa A. Hanratty Group Vice President- None
Suites 6&7 Northern New England
169 South River Road
Bedford, NH 03110
John R. Hantz Group Vice President- None
Suite 107 Detroit Metro
17177 N. Laurel Park
Livonia, MI 48154
Robert L. Harden Group Vice President- None
Two Constitution Plaza Boston Metro
Boston, MA 02129
Lorraine R. Hart Vice President- None
IDS Tower 10 Insurance Investments
Minneapolis, MN 55440
Scott A. Hawkinson Vice President-Assured None
IDS Tower 10 Assets Product Development
Minneapolis, MN 55440 and Management
Brian M. Heath Group Vice President- None
Suite 150 North Texas
801 E. Campbell Road
Richardson, TX 75081
<PAGE>
PAGE 61
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Janis K. Heaney Vice President- None
IDS Tower 10 Incentive Compensation
Minneapolis, MN 55440
James G. Hirsh Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
David J. Hockenberry Group Vice President- None
30 Burton Hills Blvd. Eastern Tennessee
Suite 175
Nashville, TN 37215
David R. Hubers Chairman, Chief Board member
IDS Tower 10 Executive Officer and
Minneapolis, MN 55440 President
Martin G. Hurwitz Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
James M. Jensen Vice President- None
IDS Tower 10 Life Products
Minneapolis, MN 55440
Marietta L. Johns Senior Vice President- None
IDS Tower 10 Field Management
Minneapolis, MN 55440
James E. Kaarre Vice President- None
IDS Tower 10 Marketing Promotions
Minneapolis, MN 55440
Matthew N. Karstetter Vice President- None
IDS Tower 10 Investment Accounting
Minneapolis, MN 55440
Linda B. Keene Vice President- None
IDS Tower 10 Market Development
Minneapolis, MN 55440
G. Michael Kennedy Vice President-Investment None
IDS Tower 10 Services and Investment
Minneapolis, MN 55440 Research
Susan D. Kinder Senior Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440
<PAGE>
PAGE 62
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Richard W. Kling Senior Vice President- None
IDS Tower 10 Products
Minneapolis, MN 55440
Paul F. Kolkman Vice President- None
IDS Tower 10 Actuarial Finance
Minneapolis, MN 55440
Claire Kolmodin Vice President- None
IDS Tower 10 Service Quality
Minneapolis, MN 55440
David S. Kreager Group Vice President- None
Suite 108 Greater Michigan
Trestle Bridge V
5136 Lovers Lane
Kalamazoo, MI 49002
Steven C. Kumagai Director and Senior None
IDS Tower 10 Vice President-Field
Minneapolis, MN 55440 Management and Business
Systems
Mitre Kutanovski Group Vice President- None
Suite 680 Chicago Metro
8585 Broadway
Merrillville, IN 48410
Edward Labenski Jr. Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Kurt A. Larson Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Lori J. Larson Vice President- None
IDS Tower 10 Variable Assets Product
Minneapolis, MN 55440 Development
Ryan R. Larson Vice President- None
IDS Tower 10 IPG Product Development
Minneapolis, MN 55440
Daniel E. Laufenberg Vice President and None
IDS Tower 10 Chief U.S. Economist
Minneapolis, MN 55440
Richard J. Lazarchic Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager<PAGE>
PAGE 63
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Peter A. Lefferts Senior Vice President- None
IDS Tower 10 Corporate Strategy and
Minneapolis, MN 55440 Development
Douglas A. Lennick Director and Executive None
IDS Tower 10 Vice President-Private
Minneapolis, MN 55440 Client Group
Mary J. Malevich Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Fred A. Mandell Vice President- None
IDS Tower 10 Field Marketing Readiness
Minneapolis, MN 55440
Daniel E. Martin Group Vice President- None
Suite 650 Pittsburgh Metro
5700 Corporate Drive
Pittsburgh, PA 15237
Thomas W. Medcalf Vice President- None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
William C. Melton Vice President- None
IDS Tower 10 International Research
Minneapolis, MN 55440 and Chief International
Economist
William Miller Vice President and None
IDS Tower 10 Senior Portfolio Manager
Minneapolis, MN 55440
James A. Mitchell Executive Vice President- None
IDS Tower 10 Marketing and Products
Minneapolis, MN 55440
John P. Moraites Group Vice President- None
Union Plaza Suite 900 Kansas/Oklahoma
3030 Northwest Expressway
Oklahoma City, OK 73112
Pamela J. Moret Vice President- None
IDS Tower 10 Variable Assets
Minneapolis, MN 55440
Alan D. Morgenstern Group Vice President- None
Suite 200 Central California/
3500 Market Street Western Nevada
Camp Hill, NJ 17011<PAGE>
PAGE 64
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Barry J. Murphy Senior Vice President- None
IDS Tower 10 Client Service
Minneapolis, MN 55440
Mary Owens Neal Vice President- None
IDS Tower 10 Mature Market Segment
Minneapolis, MN 55440
Robert J. Neis Vice President- None
IDS Tower 10 Technology Services
Minneapolis, MN 55440
Thomas V. Nicolosi Group Vice President- None
Suite 220 New York Metro Area
500 Mamaroneck Avenue
Harrison, NY 10528
James R. Palmer Vice President- None
IDS Tower 10 Taxes
Minneapolis, MN 55440
Carla P. Pavone Vice President- None
IDS Tower 10 Specialty Service Teams
Minneapolis, MN 55440 and Emerging Business
Susan B. Plimpton Vice President- None
IDS Tower 10 Segmentation Development
Minneapolis, MN 55440 and Support
Larry M. Post Group Vice President- None
One Tower Bridge Philadelphia Metro
100 Front Street 8th Fl
West Conshohocken, PA 19428
Ronald W. Powell Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James M. Punch Vice President- None
IDS Tower 10 Special Projects
Minneapolis, MN 55440
Frederick C. Quirsfeld Vice President-Taxable None
IDS Tower 10 Mutual Fund Investments
Minneapolis, MN 55440
Debra J. Rabe Vice President-Financial None
IDS Tower 10 Planning
Minneapolis, MN 55440
<PAGE>
PAGE 65
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
R. Daniel Richardson Group Vice President- None
Suite 800 Southern Texas
Arboretum Plaza One
9442 Capital of Texas Hwy N.
Austin, TX 78759
Roger B. Rogos Group Vice President- None
One Sarasota Tower At Large
Suite 700
Two N. Tamiami Trail
Sarasota, FL 34236
ReBecca K. Roloff Vice President-Private None
IDS Tower 10 Client Group
Minneapolis, MN 55440
Stephen W. Roszell Vice President- None
IDS Tower 10 Advisory Institutional
Minneapolis, MN 55440 Marketing
Max G. Roth Group Vice President- None
Suite 201 S IDS Ctr Wisconsin/Upper Michigan
1400 Lombardi Avenue
Green Bay, WI 54304
John P. Ryan Vice President and None
IDS Tower 10 General Auditor
Minneapolis, MN 55440
Erven Samsel Senior Vice President- None
45 Braintree Hill Park Field Management
Suite 402
Braintree, MA 02184
Russell L. Scalfano Group Vice President- None
Suite 201 Illinois/Indiana/Kentucky
101 Plaza East Blvd.
Evansville, IN 47715
William G. Scholz Group Vice President- None
Suite 205 Arizona/Las Vegas
7333 E Doubletree Ranch Rd
Scottsdale, AZ 85258
Stuart A. Sedlacek Vice President- None
IDS Tower 10 Assured Assets
Minneapolis, MN 55440
Donald K. Shanks Vice President- None
IDS Tower 10 Property Casualty
Minneapolis, MN 55440<PAGE>
PAGE 66
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
F. Dale Simmons Vice President-Senior None
IDS Tower 10 Portfolio Manager,
Minneapolis, MN 55440 Insurance Investments
Judy P. Skoglund Vice President- None
IDS Tower 10 Human Resources and
Minneapolis, MN 55440 Organization Development
Julian W. Sloter Group Vice President- None
Suite 1700 Orlando/Jacksonville
Orlando FinCtr
800 North Magnolia Ave.
Orlando, FL 32803
Ben C. Smith Vice President- None
IDS Tower 10 Workplace Marketing
Minneapolis, MN 55440
William A. Smith Vice President and None
IDS Tower 10 Controller-Private
Minneapolis, MN 55440 Client Group
James B. Solberg Group Vice President- None
466 Westdale Mall Eastern Iowa Area
Cedar Rapids, IA 52404
Bridget Sperl Vice President- None
IDS Tower 10 Human Resources
Minneapolis, MN 55440 Management Services
Paul J. Stanislaw Group Vice President- None
Suite 1100 Southern California
Two Park Plaza
Irvine, CA 92714
Lois A. Stilwell Group Vice President- None
Suite 433 Outstate Minnesota Area/
9900 East Bren Road North Dakota/Western Wisconsin
Minnetonka, MN 55343
William A. Stoltzmann Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
James J. Strauss Vice President- None
IDS Tower 10 Corporate Planning
Minneapolis, MN 55440 and Analysis
Jeffrey J. Stremcha Vice President-Information None
IDS Tower 10 Resource Management/ISD
Minneapolis, MN 55440<PAGE>
PAGE 67
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Barbara Stroup Stewart Vice President-Corporate None
IDS Tower 10 Reengineering
Minneapolis, MN 55440
Neil G. Taylor Group Vice President- None
Suite 425 Seattle/Tacoma
101 Elliott Avenue West
Seattle, WA 98119
John R. Thomas Senior Vice President- Board member
IDS Tower 10 Information and
Minneapolis, MN 55440 Technology
Melinda S. Urion Senior Vice President Treasurer
IDS Tower 10 and Chief Financial
Minneapolis, MN 55440 Officer
Peter S. Velardi Group Vice President- None
Suite 180 Atlanta/Birmingham
1200 Ashwood Parkway
Atlanta, GA 30338
Charles F. Wachendorfer Group Vice President- None
Suite 100 Denver/Salt Lake City/
Stanford Plaza II Albuquerque
7979 East Tufts Ave Pkwy
Denver, CO 80237
Wesley W. Wadman Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Norman Weaver Jr. Senior Vice President- None
1010 Main St Suite 2B Field Management
Huntington Beach, CA 92648
Michael L. Weiner Vice President- None
IDS Tower 10 Tax Research and Audit
Minneapolis, MN 55440
Lawrence J. Welte Vice President- None
IDS Tower 10 Investment Administration
Minneapolis, MN 55440
Jeffry M. Welter Vice President- None
IDS Tower 10 Equity and Fixed Income
Minneapolis, MN 55440 Trading
William N. Westhoff Senior Vice President- None
IDS Tower 10 Global Investments
Minneapolis, MN 55440 <PAGE>
PAGE 68
Item 29(b). As to each director, officer or partner of the
principal underwriter (American Express Financial Advisors):
(cont'd)
Positions and
Name and Principal Position and Offices Offices with
Business Address with Underwriter Registrant
Thomas L. White Group Vice President- None
Suite 200 Cleveland Metro
28601 Chagrin Blvd.
Woodmere, OH 44122
Eric S. Williams Group Vice President- None
Suite 250 Virginia
3951 Westerre Parkway
Richmond, VA 23233
William J. Williams Group Vice President- None
Two North Tamiami Trail Western Florida
Suite 702
Sarasota, FL 34236
Edwin M. Wistrand Vice President and None
IDS Tower 10 Assistant General
Minneapolis, MN 55440 Counsel
Michael D. Wolf Vice President- None
IDS Tower 10 Senior Portfolio
Minneapolis, MN 55440 Manager
Michael R. Woodward Senior Vice President- None
32 Ellicott St Field Management
Suite 100
Batavia, NY 14020
Item 29(c).
<TABLE>
<CAPTION>
Net Underwriting
Name of Principal Discounts and Compensation on Brokerage
Underwriter Commissions Redemption Commissions Compensation
<S> <C> <C> <C> <C>
American Express
Financial Advisors
Inc.
</TABLE>
Item 30. Location of Accounts and Records
American Enterprise Life Insurance Company
IDS Tower 10
Minneapolis, MN 55402
Item 31. Management Services
Not applicable.
<PAGE>
PAGE 69
Item 32. Undertakings
(a) Registrant undertakes that it will file a
post-effective amendment to this registration
statement as frequently as is necessary to ensure
that the audited financial statements in the
registration statement are never more than 16
months old for so long as payments under the
variable annuity contracts may be accepted.
(b) Registrant undertakes that it will include either
(1) as part of any application to purchase a
contract offered by the prospectus, a space that an
applicant can check to request a Statement of
Additional Information, or (2) a post card or
similar written communication affixed to or
included the prospectus that the applicant can
remove to send for a Statement of Additional
Information.
(c) Registrant undertakes to deliver any Statement of
Additional Information and any financial statements
required to be made available under this Form
promptly upon written or oral request to American
Enterprise Life Contract Owner Service at the
address or phone number listed in the prospectus.
(d) The sponsoring insurance company represents that
the fees and charges deducted under the contract,
in the aggregate, are reasonable in relation to
the services rendered, the expenses expected to
be incurred, and the risks assumed by the
insurance company.
<PAGE>
PAGE 70
SIGNATURES
As required by the Securities Act of 1933 and the Investment
Company Act of 1940, American Enterprise Life Insurance Company, on
behalf of the Registrant has duly caused this Registration
Statement to be signed on its behalf, in the City of Minneapolis,
and State of Minnesota, on the 27th day of August, 1997.
AMERICAN ENTERPRISE VARIABLE ANNUITY ACCOUNT
(Registrant)
By American Enterprise Life Insurance Company
(Sponsor)
By /s/ Richard W. Kling*
Richard W. Kling
Chairman of the Board
As required by the Securities Act of 1933, this Registration
Statement has been signed by the following persons in the
capacities indicated on the 27th day of August, 1997.
Signature Title
/s/ James F. Choat* Director, Chief Executive
James F. Choat Officer
/s/ Douglas L. Forsberg* Director, President
Douglas L. Forsberg
/s/ Richard W. Kling* Director and Chairman of
Richard W. Kling the Board
/s/ Paul S. Mannweiler* Director
Paul S. Mannweiler
/s/ Stuart A. Sedlacek* Director and Executive Vice
Stuart A. Sedlacek President-Assured Assets
/s/ William A. Stoltzmann* Director, Vice President,
William A. Stoltzmann General Counsel and
Secretary
/s/ Melinda S. Urion Vice President and
Melinda S. Urion Controller
*Signed pursuant to Power of Attorney dated March 28, 1997, filed
electronically as Exhibit 15 to Post-Effective Amendment No. 7 to
Registration Statement No. 33-54471, filed on or about April 23,
1997, is incorporated herein by reference.
______________________________
Mary Ellyn Minenko
<PAGE>
PAGE 71
CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 8
This Registration Statement is comprised of the following papers
and documents:
The Cover Page.
Cross-reference sheet.
Part A.
The prospectus.
Part B.
Statement of Additional Information.
Part C.
Other Information.
The signatures.
Exhibits.
<PAGE>
PAGE 1
American Enterprise Variable Annuity Account
Registration Number 33-54471/811-7195
EXHIBIT INDEX
Exhibit 1.2 Resolution of the Executive Committee of the Board of
Directors of American Enterprise Life establishing the
ten additional subaccounts within the separate
account dated Aug. 21, 1997.
<PAGE>
PAGE 1
TO THE SECRETARY OF
AMERICAN ENTERPRISE LIFE INSURANCE COMPANY
By Resolution received by the Secretary on July 15, 1987, the Board
of Directors of American Enterprise Life Insurance Company:
RESOLVED, That American Enterprise Life Insurance Company,
pursuant to the provisions of Section 27-1-51 Section 1 Class
1(c) of the Indiana Insurance Code, established a separate
account designated American Enterprise Variable Annuity
Account, to be used for the Corporation's Variable Annuity
contracts; and
RESOLVED FURTHER, That the proper officers of the Corporation
were authorized and directed to establish such subaccounts
and/or investment divisions of the Account in the future as
they determine to be appropriate; and
RESOLVED FURTHER, That the proper officers of the Corporation
were authorized and directed to accomplish all filings,
including registration statements and applications for
exemptive relief from provisions of the securities laws as
they deem necessary to carry the foregoing into effect.
As President of American Enterprise Life Insurance Company, I
hereby establish, in accordance with the above resolutions and
pursuant to authority granted by the Board of Directors, ten
additional subaccounts within the separate account to invest in the
following funds or portfolios:
IDS Life Growth Dimensions Fund
OCC Accumulation Trust Small Cap Portfolio
OCC Accumulation Trust Equity Portfolio
Oppenheimer Variable Account Growth Fund
Oppenheimer Variable Account High Income Fund
AIM V.I. International Equity Fund
AIM V.I. Value Fund
AIM V.I. Growth and Income Fund
Janus Aspen Series Worldwide Growth Portfolio
Janus Aspen Series Balanced Portfolio
<PAGE>
PAGE 2
In accordance with the above resolutions and pursuant to authority
granted by the Board of Directors of American Enterprise Life
Insurance Company, the Unit Investment Trust comprised of American
Enterprise Variable Annuity Account and consisting of 16
subaccounts is hereby reconstituted as American Enterprise Variable
Annuity Account consisting of 26 subaccounts.
/s/ Douglas L. Forsberg
Douglas L. Forsberg
Received by the Secretary
/s/ William A. Stoltzmann
William A. Stoltzmann
Date: 8-21-97
