AUSA LIFE INSURANCE CO INC SEPARATE ACCOUNT C
N-30D, 1999-03-12
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<PAGE>
 
March 12, 1999


VIA EDGAR
 
___________________________________

Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

Re:  AUSA Life Insurance Company, Inc. Separate Account C -
     Prism Variable Annuity
     File No.333-65159, 811-9062, CIK 947506
     Rule 30b2-1 Filing
 
Commissioners:

As required by Rule 30d-2 under the Investment Company Act of 1940, as amended
(the "Act"), AUSA Insurance Company, Inc. Separate Account C, a unit investment
trust registered under the Act, mailed to its contract owners the annual report
for the following underlying management investment companies:  Acacia Capital
Corporation and Dreyfus Socially Responsible Growth Fund, Inc.  This filing
constitutes the filing of those reports as required by Rule 30b2-1 under the
Act.

Pursuant to Rule 30d-1 under the Act, the following annual reports were filed
with the Commission via EDGAR on the dates indicated:

 .    Acacia Capital Corporation (CIK:708950) filed March 10, 1999
 .    Dreyfus Socially Responsible Growth Fund, Inc. (CIK: 890064) filed February
     23, 1999


To the extent necessary, these filings are incorporated herein by reference.

Very truly yours,

/s/ Gregory E. Miller-Breetz

Gregory E. Miller-Breetz
Assistant General Counsel


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