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AUSA LIFE INSURANCE COMPANY, INC.
SEPARATE ACCOUNT C
SUPPLEMENT DATED NOVEMBER 10, 1998
to the
PROSPECTUS DATED OCTOBER 1, 1998
for the
AUSA MARQUEE VARIABLE ANNUITY
Offered by
AUSA LIFE INSURANCE COMPANY, INC.
(A New York Stock Company)
Right to Cancel Period for Replacements
Effective November 10, 1998, if the Contract Owner is purchasing a Contract as a
replacement of an existing annuity contract or life insurance or endowment
policy, a Right to Cancel Period exists for 60 days after the Contract Owner
receives the Contract plus 5 days for mailing. (If the purchase is not a
replacement, the Right to Cancel Period is 10 days after the Contract Owner
receives the Contract plus 5 days for mailing.) The Contract Owner may cancel
the Contract during the Right to Cancel Period by returning the Contract to the
Company's Administrative Office, 4333 Edgewood Road, N.E., Cedar Rapids, Iowa
52499 or to the agent from whom the Contract Owner purchased the Contract or
mailing it to us at P.O. Box 3183, Cedar Rapids, Iowa 52406-3183. Upon
cancellation of a replacement Contract, the Contract is treated as void from the
Contract Date and the Contract Owner will receive the Accumulated Value of the
Contract as of the day the Contract is received by the Company plus the amount
of any fees and Premium Taxes that may have been subtracted to date.
Reinstatements
The Company occasionally receives requests to reinstate funds that had been
transferred to another company via an exchange under Code Section 1035 or a
trustee-to-trustee transfer under the Code. In this situation, the Company will
require the Contract Owner to replace the same total amount of money in the
applicable Subaccounts as was taken from them to effect the transfer. The total
dollar amount of funds reapplied to the Separate Account will be used to
purchase a number of Accumulation Units available for each Subaccount based on
the Accumulation Unit Values at the date of Reinstatement (within two days of
the date the funds were received by the Company). It should be noted that the
number of Accumulation Units available on the Reinstatement date may be more or
less than the number surrendered for the transfer. Contract Owners should
consult a qualified tax adviser concerning the tax consequences of any Code
Section 1035 exchanges or reinstatements.
