Supplement Dated May 1, 2000*
To the Prospectus dated May 1, 2000 of
American Express New Solutions Variable AnnuitySM (240355 C)
The following subsection is added to the "Making the Most of Your Contract"
section of the prospectus following the subsection entitled "Automated
dollar-cost averaging":
Special dollar-cost averaging program
You may elect to allocate any new purchase payments of at least $10,000 to this
program.
We will credit your purchase payments with interest at the current guaranteed
annual rate in effect on the date of your allocation. We credit a higher rate on
accounts under this program than on the one-year fixed account. We will change
these rates for new purchase payment allocations from time to time at our
discretion. These rates will be based on competition and the amount that we are
crediting on the one-year fixed account at the time of the change. Once the rate
is set for a purchase payment, it does not change.
These rates are credited on the balance remaining in the account and are not
credited after we transfer the value to the subaccounts.. Monthly, we transfer
amounts out of the accounts into the subaccounts you selected. You can choose
from either the six month or the twelve month program. All amounts are
transferred out within the period you chose.
If you already have money in the program, you will not be able to allocate more
money to it, unless another rate is applicable. You may not elect to participate
in this program if you also elect automatic rebalancing.
You may terminate participation in the program at any time. If you do so, you
will no longer receive the guaranteed annual rate on any remaining balance in
the account. You will receive the amount we currently are crediting on the
one-year fixed account.
We can modify the terms of this program or discontinue this program at any time.
Any modifications will not affect amounts already in the program.
*240355- A (05,00)
Valid until May 1, 2001
