AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON NOVEMBER 12, 1999
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FILE NOS. 033-65381
811-07467
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 4 /X/
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
AMENDMENT NO. 5 /X/
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
(Exact Name of Registrant)
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(Name of Depositor)
ONE ALLSTATE DRIVE
P.O. BOX 9095
FARMINGVILLE, NEW YORK 11738
(Address and Telephone Number of Depositor's Principal Offices)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847-402-2400
(Name, Complete Address and Telephone Number of Agent for Service)
COPIES TO:
RICHARD T. CHOI, ESQUIRE TERRY R. YOUNG, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS ALLSTATE LIFE FINANCIAL SERVICES, INC.
1050 CONNECTICUT AVENUE, N.W. 3100 SANDERS ROAD
SUITE 825 NORTHBROOK, IL 60062
WASHINGTON, D.C. 20036-5366
Approximate date of proposed public offering: Continuous
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
/X/ 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on (date) pursuant to paragraph (a)(i) 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.
Title of Securities Being Registered: Units of Interest in the Allstate Life of
New York Separate Account A under deferred variable annuity contracts.
<PAGE>
Explanatory Note
Registrant is filing this post-effective amendment ("Amendment") for the purpose
of adding a new prospectus, a new statement of additional information ("SAI"),
and additional exhibits related to a new form of contract ("new Contract") that
Registrant intends to offer. The new Contract is essentially identical to the
AIM Lifetime Plus Variable Annuity contract described in the currently effective
prospectus and SAI for that contract, each dated May 1, 1999, included in the
Registration Statement, except for certain enhancements not available under this
existing Contract. The Amendment is not intended to amend or delete any part of
the Registration Statement, except as specifically noted herein.
<PAGE>
THE AIM LIFETIME PLUS(SM) II VARIABLE ANNUITY
Allstate Life Insurance Company of New York Prospectus dated November __, 1999
P.O. Box 94038, Palatine, IL 60094-4038
Telephone Number: 1-800-692-4682
Allstate Life Insurance Company of New York ("Allstate Life of New York") is
offering the AIM Lifetime Plus(SM) II Variable Annuity, a group flexible premium
deferred variable annuity contract ("Contract"). This prospectus contains
information about the Contract that you should know before investing. Please
keep it for future reference.
The Contract currently offers 15 investment alternatives ("investment
alternatives"). The investment alternatives include 2 fixed account options
("Fixed Account Options") and 13 variable sub-accounts ("Variable Sub-Accounts")
of the Allstate Life of New York Separate Account A ("Variable Account"). Each
Variable Sub-Account invests exclusively in shares of one of the following funds
("Funds") of AIM Variable Insurance Funds, Inc.:
AIM V.I. Aggressive Growth Fund AIM V.I. Government Securities Fund
AIM V.I. Balanced Fund AIM V.I. Growth Fund
AIM V.I. Capital Appreciation Fund AIM V.I. Growth and Income Fund
AIM V.I. Capital Development Fund AIM V.I. High Yield Fund
AIM V.I. Diversified Income Fund AIM V.I. International Equity Fund
AIM V.I. Global Utilities Fund AIM V.I. Money Market Fund
AIM V.I. Value Fund
We (Allstate Life of New York) have filed a Statement of Additional Information,
dated November __, 1999, with the Securities and Exchange Commission ("SEC"). It
contains more information about the Contract and is incorporated herein by
reference, which means it is legally a part of this prospectus. Its table of
contents appears on page __ of this prospectus. For a free copy, please write or
call us at the address or telephone number above, or go to the SEC's Web site
(http:www.sec.gov). You can find other information and documents about us,
including documents that are legally part of this prospectus, at the SEC's Web
site (http:\\www.sec.gov).
The Securities and Exchange Commission has not approved
or disapproved the securities described in this
prospectus, nor has it passed on the accuracy or the
adequacy of this prospectus. Anyone who tells you
otherwise is committing a federal crime.
The Contracts may be distributed through broker-dealers
IMPORTANT that have relationships with banks or other financial
NOTICES institutions or by employees of such banks. However,
the Contracts are not deposits, or obligations of, or
guaranteed by such institutions or any federal
regulatory agency. Investment in the Contracts
involves investment risks, including possible loss of
principal.
The Contracts are not FDIC insured.
The Contracts are only available in New York.
<PAGE>
TABLE OF CONTENTS
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<TABLE>
<CAPTION>
Page
<S> <C> <C>
Important Terms................................................................
Overview The Contract at a Glance.......................................................
How the Contract Works.........................................................
Expense Table..................................................................
Financial Information..........................................................
The Contract...................................................................
Purchases......................................................................
Contract Features Contract Value.................................................................
Investment Alternatives........................................................
The Variable Sub-Accounts.............................................
The Fixed Account Options.............................................
Transfers.............................................................
Expenses.......................................................................
Access To Your Money...........................................................
Income Payments................................................................
Death Benefits.................................................................
More Information:
Allstate Life of New York.............................................
The Variable Account..................................................
The Funds.............................................................
Other Information The Contract .........................................................
Qualified Plans ......................................................
Legal Matters.........................................................
Year 2000.............................................................
Taxes..........................................................................
Annual Reports and Other Documents.............................................
Performance Information........................................................
Appendix A - Illustration of a Market Value Adjustment ........................
Statement of Additional Information Table of Contents.........................
</TABLE>
<PAGE>
IMPORTANT TERMS
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This prospectus uses a number of important terms that you may not be familiar
with. The index below identifies the page that describes each term. The first
use of each term in this prospectus appears in highlights.
Page
Accumulation Phase............................................
Accumulation Unit ............................................
Accumulation Unit Value ......................................
Allstate Life of New York ("We")..............................
Anniversary Values............................................
Annuitant.....................................................
Automatic Additions Program ..................................
Automatic Fund Rebalancing Program............................
Beneficiary ..................................................
Cancellation Period ..........................................
*Contract ......................................................
Contract Anniversary..........................................
Contract Owner ("You") .......................................
Contract Value ...............................................
Contract Year................................................
Death Benefit Anniversary ....................................
Dollar Cost Averaging Option..................................
Dollar Cost Averaging Program.................................
Due Proof of Death............................................
Enhanced Death Benefit Option.................................
Fixed Account Options.........................................
Funds ........................................................
Guarantee Periods ...........................................
Income Plan ..................................................
Investment Alternatives ......................................
Issue Date ...................................................
Market Value Adjustment ......................................
Payout Phase..................................................
Payout Start Date.............................................
Preferred Withdrawal Amount...................................
Qualified Contracts ..........................................
Right to Cancel ..............................................
SEC...........................................................
Settlement Value ............................................
Systematic Withdrawal Program ................................
Treasury Rate ................................................
Valuation Date................................................
Variable Account .............................................
Variable Sub-Account .........................................
* The AIM Lifetime Plus II Variable Annuity is a group contract and
your ownership is represented by certificates. References to "Contract"
in this prospectus include certificates, unless the context requires
otherwise.
<PAGE>
THE CONTRACT AT A GLANCE
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The following is a snapshot of the Contract. Please read the remainder of this
prospectus for more information.
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Flexible Payments
You can purchase a Contract with an initial
purchase payment of $5,000 ($2,000 for
"Qualified Contracts," which are Contracts
issued with qualified plans). You can add
to your Contract as often and as much as
you like, but each payment must be at least
$500 ($100 for automatic purchase payments
to the variable investment options). You
must maintain a minimum account size of
$1,000.
---------------------------------- -----------------------------------------
---------------------------------- -----------------------------------------
Right to Cancel You may cancel your Contract
within 10 days after receipt ("Cancellation
Period"). Upon cancellation we will return
your purchase payments adjusted to reflect
the investment experience of any amounts
allocated to the Variable Account.
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---------------------------------- -----------------------------------------
Expenses You will bear the following expenses:
o Total Variable Account annual
fees equal to 1.10% of
average daily net Assets
(1.30% if you select the
Enhanced Death Benefit Option)
o Annual contract maintenance charge of $35
(with certain exceptions)
o Withdrawal charges ranging from 0% to 7%
of payment withdrawn (with certain
exceptions)
o Transfer fee of $10 after 12th transfer
in any Contract Year (fee currently
waived)
o State premium tax (New York currently
does not impose one).
In addition, each Fund pays expenses that
you will bear indirectly if you invest in a
Variable Sub-Account.
---------------------------------- -----------------------------------------
---------------------------------- -----------------------------------------
Investment
Alternatives The Contract offers 15 investment
alternatives including:
o 2 Fixed Account Options (which credit
interest at rates we guarantee), and
o 13 Variable Sub-Accounts investing in
Funds offering professional money
management by A I M Advisors, Inc.
To find out current rates being paid on the Fixed Account Options, or to
find out how the Variable Sub-Accounts have performed, please call us at
1-800-692-4682.
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<PAGE>
----------------------------------- ----------------------------------------
Special Services For your convenience, we offer these
special services:
o Automatic Fund Rebalancing Program
o Automatic Additions Program
o Dollar Cost Averaging Program
o Systematic Withdrawal Program
----------------------------------- ----------------------------------------
----------------------------------- ----------------------------------------
Income Payments You can choose fixed income
payments, variable income payments, or a
combination of the two. You can receive
your income payments in one of the
following ways:
o life income with guaranteed payments
o a joint and survivor life income with
guaranteed payments
o guaranteed payments for a specified
period (5 to 30 years)
----------------------------------- ----------------------------------------
----------------------------------- ----------------------------------------
Death Benefits If you die before the Payout Start Date,
we will pay the death benefit described
in the Contract. We also offer an
Enhanced Death Benefit Option.
----------------------------------- ----------------------------------------
----------------------------------- ----------------------------------------
Transfers Before the Payout Start Date, you may
transfer your Contract value ("Contract
Value") among the investment alternatives,
with certain restrictions.
We do not currently impose a fee upon
transfers. However, we reserve the right
to charge $10 per transfer after the 12th
transfer in each "Contract year," which we
measure from the date we issue your
contract or a Contract anniversary
("Contract Anniversary").
----------------------------------- ----------------------------------------
----------------------------------- ----------------------------------------
Withdrawals You may withdraw some or all of your
Contract Value at anytime during the
Accumulation Phase.
In general, you must withdraw at least $50
at a time. A 10% federal tax penalty may
apply if you withdraw before you are 59
1/2 years old. A withdrawal charge and
Market Value Adjustment also may apply.
----------------------------------- ----------------------------------------
<PAGE>
HOW THE CONTRACT WORKS
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The Contract basically works in two ways.
First, the Contract can help you (we assume you are the Contract owner)
save for retirement because you can invest in up to 15 investment alternatives
and pay no federal income taxes on any earnings until you withdraw them. You do
this during what we call the "Accumulation Phase" of the Contract. The
Accumulation Phase begins on the date we issue your Contract (we call that date
the "Issue Date") and continues until the Payout Start Date, which is the date
we apply your money to provide income payments. During the Accumulation Phase,
you may allocate your purchase payments to any combination of the Variable
Sub-Accounts and/or Fixed Account Options. If you invest in the Fixed Account
Options, you will earn a fixed rate of interest that we declare periodically. If
you invest in any of the Variable Sub-Accounts, your investment return will vary
up or down depending on the performance of the corresponding Funds.
Second, the Contract can help you plan for retirement because you can use
it to receive retirement income for life and/or for a pre-set number of years,
by selecting one of the income payment options (we call these "Income Plans")
described on page __. You receive income payments during what we call the
"Payout Phase" of the Contract, which begins on the Payout Start Date and
continues until we make the last payment required by the Income Plan you select.
During the Payout Phase, if you select a fixed income payment option, we
guarantee the amount of your payments, which will remain fixed. If you select a
variable income payment option, based on one or more of the Variable
Sub-Accounts, the amount of your payments will vary up or down depending on the
performance of the corresponding Funds. The amount of money you accumulate under
your Contract during the Accumulation Phase and apply to an Income Plan will
determine the amount of your income payments during the Payout Phase.
<TABLE>
<CAPTION>
The timeline below illustrates how you might use your Contract.
<S> <C> <C> <C> <C> <C>
Effective Payout Start
Date Accumulation Phase Date Payout Phase
- ------------------------------------------------------------------------------------------------------------------------------>
You save for retirement
| | |
You buy You elect to receive income You can receive Or you can
a Contract payments or receive a lump income payments receive income
sum payment for a set period payments for life
</TABLE>
As the Contract owner, you exercise all of the rights and privileges
provided by the Contract. If you die, any surviving Contract owner, or if there
is none, the Beneficiary will exercise the rights and privileges provided by the
Contract. See "The Contract." In addition, if you die before the Payout Start
Date, we will pay a death benefit to any surviving Contract owner or, if none,
to your Beneficiary. See "Death Benefits."
Please call us at 1-800-692-4682 if you have any question about how the
Contract works.
<PAGE>
EXPENSE TABLE
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The table below lists the expenses that you will bear directly or indirectly
when you buy a Contract. The table and the examples that follow do not reflect
premium taxes because New York currently does not impose premium taxes on
annuities. For more information about Variable Account expenses, see "Expenses,"
below. For more information about Fund expenses, please refer to the
accompanying prospectuses for the Funds.
------------------------------------------------------------------------
CONTRACT OWNER TRANSACTION EXPENSES
Withdrawal Charge (as a percentage of purchase payments)*
Number of Complete Years
Since We Received the Purchase
Payment Being Withdrawn: 0 1 2 3 4 5 6 7+
Applicable Charge: 7% 6% 5% 4% 3% 2% 1% 0%
Annual Contract Maintenance Charge..............................$35.00**
Transfer Fee....................................................$10.00***
-------------------
* Each Contract Year, you may withdraw up to 15% of the Contract Value as
of the beginning of the Contract Year without incurring a withdrawal
charge or Market Value Adjustment.
** We will waive this charge in certain cases. See "Expenses."
***Applies solely to the thirteenth and subsequent transfers within a
Contract Year excluding transfers due to dollar cost averaging or
automatic fund rebalancing. We are currently waiving the transfer fee.
------------------------------------------------------------------------
VARIABLE ACCOUNT ANNUAL EXPENSES
(as a percentage of average daily net assets deducted from each Variable
Sub-Account)
Mortality and Expense Risk Charge..................................1.00%*
Administrative Expense Charge......................................0.10%
Total Variable Account Annual Expenses..............1.10%
----------
* If you select the Enhanced Death Benefit Option, the mortality and
expense risk charge is 1.20%.
-----------------------------------------------------------------------
<PAGE>
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FUND ANNUAL EXPENSES (After Voluntary Reductions and Reimbursements) (as a
percentage of Portfolio average daily net assets)
<TABLE>
<CAPTION>
Management Total Annual
Fund Fees Other Expenses Fund Expenses
<S> <C> <C> <C>
AIM V.I. Aggressive Growth Fund (1) 0.10% 1.06% 1.16%
AIM V.I. Balanced Fund (1) 0.00% 1.18% 1.18%
AIM V.I. Capital Appreciation Fund 0.62% 0.05% 0.67%
AIM V.I. Capital Development Fund (1) 0.00% 1.21% 1.21%
AIM V.I. Diversified Income Fund 0.60% 0.17% 0.77%
AIM V.I. Global Utilities Fund 0.65% 0.46% 1.11%
AIM V.I. Government Securities Fund 0.50% 0.26% 0.76%
AIM V.I. Growth Fund 0.64% 0.08% 0.72%
AIM V.I. Growth and Income Fund 0.61% 0.04% 0.65%
AIM V.I. High Yield Fund(1) 0.00% 1.13% 1.13%
AIM V.I. International Equity Fund 0.75% 0.16% 0.91%
AIM V.I. Money Market Fund 0.40% 0.18% 0.58%
AIM V.I. Value Fund 0.61% 0.05% 0.66%
- -------------------
</TABLE>
(1) Figures shown in the table are for the year ended December 31, 1998. Absent
voluntary reductions and reimbursements for certain Funds, management fees,
other expenses, and total annual fund expenses expressed as a percentage of
average net assets of the Funds would have been as follows:
- --------------------------------------------------------------------------------
AIM V.I. Aggressive Growth Fund 0.80% 3.82% 4.62%
AIM V.I. Balanced Fund 0.75% 2.08% 2.83%
AIM V.I. Capital Development Fund 0.75% 5.05% 5.80%
AIM V.I. High Yield Fund 0.63% 1.87% 2.50%
- --------------------------------------------------------------------------------
EXAMPLE 1
The example below shows the dollar amount of expenses that you would bear
directly or indirectly if you:
o invested a $1,000 in a Variable Sub-Account,
o earned a 5% annual return on your investment,
o surrendered your Contract, or you began receiving income payments for a
specified period of less than 120 months, at the end of each time period,
and
o elected the Enhanced Death Benefit Option.
The example does not include any tax penalties you may be required to pay if you
surrender your Contract. This example does not include deductions for premium
taxes because New York does not charge premium taxes on annuities.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEAR 10 YEAR
- ----------- ------ ------- ------ -------
AIM V.I. Aggressive Growth
AIM V.I. Balanced
AIM V.I. Capital Appreciation
AIM V.I. Capital Development
AIM V.I. Diversified Income
AIM V.I. Global Utilities
AIM V.I. Government Securities
AIM V.I. Growth
AIM V.I. Growth and Income
AIM V.I. High Yield
AIM V.I. International Equity
AIM V.I. Money Market
AIM V.I. Value
</TABLE>
EXAMPLE 2
Same assumptions as Example 1 above, except that you decided not to surrender
your Contract, or you began receiving income payments (for at least 120 months
if under an Income Plan for a specified period), at the end of each period.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ----------- ------ ------- ------- --------
AIM V.I. Aggressive Growth
AIM V.I. Balanced
AIM V.I. Capital Appreciation
AIM V.I. Capital Development
AIM V.I. Diversified Income
AIM V.I. Global Utilities
AIM V.I. Government Securities
AIM V.I. Growth
AIM V.I. Growth and Income
AIM V.I. High Yield
AIM V.I. International Equity
AIM V.I. Money Market
AIM V.I. Value
</TABLE>
Please remember that you are looking at examples and not a representation of
past or future expenses. Your actual expenses may be lower or greater than those
shown above. Similarly, your rate of return may be lower or greater than 5%,
which is not guaranteed. The above examples assume the election of the Enhanced
Death Benefit Option, with a mortality and expense risk charge of 1.20%. If that
option was not elected, the expense figures shown above would be slightly lower.
To reflect the contract maintenance charge in the examples, we estimated an
equivalent percentage charge, based on an assumed average Contract size of
$50,000.
<PAGE>
FINANCIAL INFORMATION
- ------------------------------------------------------------------------------
To measure the value of your investment in the Variable Sub-Accounts during the
Accumulation Phase, we use a unit of measure we call the "Accumulation Unit."
Each Variable Sub-Account has a separate value for its Accumulation Units we
call "Accumulation Unit Value." Accumulation Unit Value is analogous to, but not
the same as, the share price of a mutual fund.
There are no Accumulation Unit Values to report because the Contracts were first
offered as of the date of this prospectus. The financial statements of Allstate
Life of New York appear in the Statement of Additional Information.
<PAGE>
THE CONTRACT
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CONTRACT OWNER
The AIM Lifetime Plus II Variable Annuity is a contract between you, the
Contract owner, and Allstate Life of New York, a life insurance company. As the
Contract owner, you may exercise all of the rights and privileges provided to
you by the Contract. That means it is up to you to select or change (to the
extent permitted):
o the investment alternatives during the Accumulation and Payout Phases,
o the amount and timing of your purchase payments and withdrawals,
o the programs you want to use to invest or withdraw money,
o the income payment plan you want to use to receive retirement income,
o the Annuitant (either yourself or someone else) on whose life the income
payments will be based,
o the Beneficiary or Beneficiaries who will receive the benefits that the
Contract provides when the last surviving Contract owner or Annuitant dies,
and
o any other rights that the Contract provides.
If you die, any surviving Contract owner or, if none, the Beneficiary may
exercise the rights and privileges provided to them by the Contract. The
Contract cannot be jointly owned by both a non-natural person and a natural
person.
You can use the Contract with or without a qualified plan. A qualified plan is a
personal retirement savings plan, such as an IRA or tax-sheltered annuity, that
meets the requirements of the Internal Revenue Code. Qualified plans may limit
or modify your rights and privileges under the Contract. We use the term
"Qualified Contract" to refer to a Contract issued with a qualified plan. See
"Qualified Plans" on page __.
ANNUITANT
The Annuitant is the individual whose life determines the amount and duration of
income payments (other than under Income Plans with guaranteed payments for a
specified period). You initially designate an Annuitant in your application. If
the Contract owner is a natural person you may change the Annuitant prior to the
Payout Start Date. In our discretion , we may permit you to designate a joint
Annuitant, who is a second person on whose life income payments depend, on or
after the Payout Start Date.
If the Annuitant dies prior to the Payout Start Date, the new Annuitant will be:
o the youngest Contract owner, otherwise
o the youngest Beneficiary.
BENEFICIARY
The Beneficiary is the person who may elect to receive the death benefit or
become the new Contract owner if the sole surviving Contract owner dies before
the Payout Start Date. If the sole surviving Contract owner dies after the
Payout Start Date, the Beneficiary will receive any guaranteed income payments
scheduled to continue.
You may name one or more Beneficiaries when you apply for a Contract. You may
change or add Beneficiaries at any time by writing to us, unless you have
designated an irrevocable Beneficiary. We will provide a change of Beneficiary
form to be signed and filed with us. Any change will be effective at the time
you sign the written notice, whether or not the Annuitant is living when we
receive the notice. Until we receive your written notice to change a
Beneficiary, we are entitled to rely on the most recent Beneficiary information
in our files. We will not be liable as to any payment or settlement made prior
to receiving the written notice. Accordingly, if you wish to change your
Beneficiary, you should deliver your written notice to us promptly.
If you do not name a Beneficiary or if the named Beneficiary is no longer living
and there are no other surviving Beneficiaries, the new Beneficiary will be:
o your spouse or, if he or she is no longer alive,
o your surviving children equally, or if you have no surviving children,
o your estate.
If more than one Beneficiary survives you (or the Annuitant if the Contract
owner is not a natural person), we will divide the death benefit among your
Beneficiaries according to your most recent written instructions. If you have
not given us written instructions, we will pay the death benefit in equal
amounts to the surviving Beneficiaries.
MODIFICATION OF THE CONTRACT
Only an Allstate Life of New York officer may approve a change in or waive any
provision of the Contract. Any change or waiver must be in writing. None of our
agents has the authority to change or waive the provisions of the Contract. We
may not change the terms of the Contract without your consent, except to conform
the Contract to applicable law or changes in the law. If a provision of the
Contract is inconsistent with state law, we will follow state law.
ASSIGNMENT
We will not honor an assignment of an interest in a Contract as collateral or
security for a loan. However, you may assign periodic income payments under the
Contract prior to the Payout Start Date. No Beneficiary may assign benefits
under the Contract until they are due. We will not be bound by any assignment
until the assign signs it and files it with us. We are not responsible for the
validity of any assignment. Federal law prohibits or restricts the assignment of
benefits under many types of retirement plans and the terms of such plans may
themselves contain restrictions on assignments. An assignment may also result in
taxes or tax penalties. You should consult with an attorney before trying to
assign your Contract.
<PAGE>
PURCHASES
- --------------------------------------------------------------------------------
MINIMUM PURCHASE PAYMENTS
Your initial purchase payment must be at least $5,000 ($2,000 for a Qualified
Contract). All subsequent purchase payments must be $500 or more. The maximum
purchase payment is $1,000,000 without prior approval. We reserve the right to
reduce the minimum purchase payment. You may make purchase payments at any time
prior to the Payout Start Date. We reserve the right to reject any application.
AUTOMATIC ADDITIONS PROGRAM
You may make subsequent purchase payments of at least $100 ($500 for allocation
to the Fixed Account Options) by automatically transferring amounts from your
bank account. Please consult with your sales representative for detailed
information.
ALLOCATION OF PURCHASE PAYMENTS
At the time you apply for a Contract, you must decide how to allocate your
purchase payments among the investment alternatives. The allocation you specify
on your application will be effective immediately. All allocations must be in
whole percents that total 100% or in whole dollars. You can change your
allocations by notifying us in writing. We reserve the right to limit the
availability of the investment alternatives.
We will allocate your purchase payments to the investment alternatives according
to your most recent instructions on file with us. Unless you notify us in
writing otherwise, we will allocate subsequent purchase payments according to
the allocation for the previous purchase payment. We will effect any change in
allocation instructions at the time we receive written notice of the change in
good order.
We will credit the initial purchase payment that accompanies your completed
application to your Contract within 2 business days after we receive the payment
at our servicing center. If your application is incomplete, we will ask you to
complete your application within 5 business days. If you do so, we will credit
your initial purchase payment to your Contract within that 5 business day
period. If you do not, we will return your purchase payment at the end of the 5
business day period unless you expressly allow us to hold it until you complete
the application. We will credit subsequent purchase payments to the Contract at
the close of the business day on which we receive the purchase payment at our
service center located at P.O. Box 94038, Palatine, Illinois, 60094.
We are open for business each day Monday through Friday that the New York Stock
Exchange is open for business. We also refer to these days as "Valuation Dates."
Our business day closes when the New York Stock Exchange closes, usually 4 p.m.
Eastern Time (3 p.m. Central Time). If we receive your purchase payment after 3
p.m. Central Time on any Valuation Date, we will credit your purchase payment
using the Accumulation Unit Values computed on the next Valuation Date.
RIGHT TO CANCEL
You may cancel the Contract by returning it to us within the Cancellation
Period, which is the 10 day period after you receive the Contract. You may
return it by delivering it or mailing it to us. If you exercise this "Right to
Cancel," the Contract terminates and we will pay you the full amount of your
purchase payments allocated to the Fixed Account Options. We will return your
purchase payments allocated to the Variable Account after an adjustment to
reflect investment gain or loss that occurred from the date of allocation
through the date of cancellation. If your Contract is qualified under Section
408 of the Internal Revenue Code, we will refund the greater of any purchase
payments or the Contract Value.
<PAGE>
CONTRACT VALUE
- --------------------------------------------------------------------------------
On the issue date, the Contract Value is equal to the initial purchase payment.
Thereafter, your Contract Value at any time during the Accumulation Phase is
equal to the sum of the value of your Accumulation Units in the Variable
Sub-Accounts you have selected, plus the value of your interest in the Fixed
Account Options.
ACCUMULATION UNITS
To determine the number of Accumulation Units of each Variable Sub-Account to
allocate to your Contract, we divide (i) the amount of the purchase payment or
transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation
Unit Value of that Variable Sub-Account next computed after we receive your
payment or transfer. For example, if we receive a $10,000 purchase payment
allocated to a Variable Sub-Account when the Accumulation Unit Value for the
Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable
Sub-Account to your Contract. Withdrawals and transfers from a Variable
Sub-Account would, of course, reduce the number of Accumulation Units of that
Sub-Account allocated to your Contract.
ACCUMULATION UNIT VALUE
As a general matter, the Accumulation Unit Value for each Variable Sub-Account
will rise or fall to reflect:
o changes in the share price of the Fund in which the Variable Sub-Account
invests, and
o the deduction of amounts reflecting the mortality and expense risk charge,
administrative expense charge, and any provision for taxes that have
accrued since we last calculated the Accumulation Unit Value.
We determine contract maintenance charges, withdrawal charges, and transfer fees
(currently waived) separately for each Contract. They do not affect Accumulation
Unit Value. Instead, we obtain payment of those charges and fees by redeeming
Accumulation Units. For details on how we calculate Accumulation Unit Value,
please refer to the Statement of Additional Information.
We determine a separate Accumulation Unit Value for each Variable Sub-Account on
each Valuation Date. We also determine a separate set of Accumulation Unit
Values reflecting the cost of the Enhanced Death Benefit Option described on
page __ below.
You should refer to the prospectus for the Funds that accompanies this
prospectus for a description of how the assets of each Fund are valued, since
that determination directly bears on the Accumulation Unit Value of the
corresponding Variable Sub-Account and, therefore, your Contract Value.
<PAGE>
INVESTMENT ALTERNATIVES: The Variable Sub-Accounts
- --------------------------------------------------------------------------------
You may allocate your purchase payments to up to 13 Variable Sub-Accounts. Each
Variable Sub-Account invests in the shares of a corresponding Fund. Each Fund
has its own investment objective(s) and policies. We briefly describe the Funds
below.
For more complete information about each Fund, including expenses and risks
associated with the Fund, please refer to the accompanying prospectus for the
Fund. You should carefully review the Fund prospectuses before allocating
amounts to the Variable Sub-Accounts. A I M Advisors, Inc. serves as the
investment advisor to each Fund.
<TABLE>
<CAPTION>
- ------------------------------------------ --------------------------------------------------------------------------
<S> <C>
Fund: Each Fund Seeks:
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Aggressive Growth Fund* Long-term growth of capital
- ------------------------------------------ --------------------------------------------------------------------------
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Balanced Fund As high a total return as possible, consistent with preservation of
capital
- ------------------------------------------ --------------------------------------------------------------------------
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Capital Appreciation Fund Growth of capital
- ------------------------------------------ --------------------------------------------------------------------------
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Capital Development Fund Long-term growth of capital
- ------------------------------------------ --------------------------------------------------------------------------
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Diversified Income Fund High level of current income
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Global Utilities Fund High level of current income and a secondary objective of growth of
capital
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Government Securities Fund High level of current income consistent with reasonable concern for
safety of principal
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Growth Fund Growth of capital
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Growth and Income Fund Growth of capital with a secondary objective of current income
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. High Yield Fund High level of current income
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. International Equity Fund Long-term growth of capital
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Money Market Fund As high a level of current income as is consistent with the preservation
of capital and liquidity
- ------------------------------------------ --------------------------------------------------------------------------
AIM V.I. Value Fund Long-term growth of capital
- ------------------------------------------ --------------------------------------------------------------------------
</TABLE>
* Due to the sometime limited availability of common stocks of small-cap
companies that meet the investment criteria for AIM V.I. Aggressive Growth
Fund, the Fund may periodically suspend or limit the offering of its shares.
The Fund will be closed to new participants when Fund assets reach $200
million. If the Fund is closed, Contract owners maintaining an allocation of
Contract Value in that Fund will nevertheless be permitted to allocate
additional purchase payments to the Fund.
Amounts you allocate to Variable Sub-Accounts may grow in value, decline in
value, or grow less than you expect, depending on the investment performance of
the Funds in which those Variable Sub-Accounts invest. You bear the investment
risk that the Funds might not meet their investment objectives. Shares of the
Funds are not deposits, or obligations of, or guaranteed or endorsed by any bank
and are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
<PAGE>
INVESTMENT ALTERNATIVES : The Fixed Account Options
- --------------------------------------------------------------------------------
You may allocate all or a portion of your purchase payments to the Fixed
Account. You may choose from among 2 Fixed Account Options, including a Dollar
Cost Averaging Fixed Account Option ("Dollar Cost Averaging Option"), and the
option to invest in one or more Guarantee Periods. The Fixed Account Options may
not be available in all states. Please consult with your sales representative
for current information. The Fixed Account supports our insurance and annuity
obligations. The Fixed Account consists of our general assets other than those
in segregated asset accounts. We have sole discretion to invest the assets of
the Fixed Account, subject to applicable law. Any money you allocate to a Fixed
Account Option does not entitle you to share in the investment experience of the
Fixed Account.
DOLLAR COST AVERAGING OPTION
You may establish a Dollar Cost Averaging Program, as described on page __, by
allocating purchase payments to the Dollar Cost Averaging Option. Purchase
payments that you allocate to the Dollar Cost Averaging Option will earn
interest for up to a 1 year period at the current rate in effect at the time of
allocation. We will credit interest daily at a rate that will compound over the
year to the annual interest rate we guaranteed at the time of allocation. You
may transfer each purchase payment and associated interest out of the Dollar
Cost Averaging Option to the other investment alternatives in up to twelve equal
monthly installments. At the end of 12 months from the date of a purchase
payment allocation to the Dollar Cost Averaging Account, any remaining portion
of the purchase payment and interest in the Dollar Cost Averaging Account will
be allocated to other investment alternatives as defined by the current Dollar
Cost Averaging Account allocation. You may not transfer funds from other
investment alternatives to the Dollar Cost Averaging Option.
The crediting rates for the Dollar Cost Averaging Option will never be less than
3% annually.
Transfers out of the Dollar Cost Averaging Option do not count towards the 12
transfers you can make without paying a transfer fee.
We may declare more than one interest rate for different monies based upon the
date of allocation to the Dollar Cost Averaging Option. For current interest
rate information, please contact your Financial Advisor or our Customer Service
unit at 1-800-692-4682.
GUARANTEE PERIODS
Each payment or transfer allocated to a Guarantee Period earns interest at a
specified rate that we guarantee for a period of years. Guarantee Periods may
range from 1 to 10 years. We are currently offering Guarantee Periods of 1, 3,
5, 7, and 10 years in length. In the future we may offer Guarantee Periods of
different lengths or stop offering some Guarantee Periods. You select one or
more Guarantee Periods for each purchase payment or transfer. If you do not
select the Guarantee Period for a purchase payment or transfer, we will assign
the shortest Guarantee Period available under the Contract for such payment or
transfer.
We reserve the right to limit the number of additional purchase payments that
you may allocate to this Option. Please consult with your sales representative
for more information.
Interest Rates
We will tell you what interest rates and Guarantee Periods we are offering at a
particular time. We may declare different interest rates for Guarantee Periods
of the same length that begin at different times. We will not change the
interest rate that we credit to a particular allocation until the end of the
relevant Guarantee Period.
We have no specific formula for determining the rate of interest that we will
declare initially or in the future. We will set those interest rates based on
investment returns available at the time of the determination. In addition, we
may consider various other factors in determining interest rates including
regulatory and tax requirements, our sales commission and administrative
expenses, general economic trends, and competitive factors. We determine the
interest rates to be declared in our sole discretion. We can neither predict nor
guarantee what those rates will be in the future. For current interest rate
information, please contact your sales representative or Allstate Life of New
York at 1-800-692-4682. The interest rate will never be less than the minimum
guaranteed amount stated in the Contract.
How We Credit Interest
We will credit interest daily to each amount allocated to a Guarantee Period at
a rate that compounds to the effective annual interest rate that we declared at
the beginning of the applicable Guarantee Period. The following example
illustrates how a purchase payment allocated to a Guarantee Period would grow,
given an assumed Guarantee Period and effective annual interest rate:
Purchase Payment..............................$10,000
Guarantee Period..............................5 years
Annual Interest Rate........................... 4.50%
<TABLE>
<CAPTION>
END OF CONTRACT YEAR
<S> <C> <C> <C> <C> <C>
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
------ ------ ------ ------ ------
Beginning Contract Value $10,000.00
X (1 + Annual Interest Rate) X 1.045
$10,450.00
Contract Value at end of Contract Year $10,450.00
X (1 + Annual Interest Rate) X 1.045
$10,920.25
Contract Value at end of Contract Year $10,920.25
X (1 + Annual Interest Rate) X 1.045
$11,411.66
Contract Value at end of Contract Year $11,411.66
X (1 + Annual Interest Rate) X 1.045
$11,925.19
Contract Value at end of Contract Year $11,925.19
X (1 + Annual Interest Rate) X 1.045
$12,461.82
</TABLE>
Total Interest Credited During Guarantee Period = $2,461.82 ($12,461.82
- -$10,000)
This example assumes no withdrawals during the entire 5 year Guarantee Period.
If you were to make a partial withdrawal, you may be required to pay a
withdrawal charge. In addition, the amount withdrawn may be increased or
decreased by a Market Value Adjustment that reflects changes in interest rates
since the time you invested the amount withdrawn. The hypothetical interest rate
is for illustrative purposes only and is not intended to predict future interest
rates to be declared under the Contract. Actual interest rates declared for any
given Guarantee Period may be more or less than shown above but will never be
less than the guaranteed minimum rate stated in the Contract.
Renewals
Prior to the end of each Guarantee Period, we will mail you a notice asking you
what to do with your money, including the accrued interest. During the 30-day
period after the end of the Guarantee Period, you may:
1) take no action. We will automatically apply your money to a new
Guarantee Period of the shortest duration available. The new Guarantee
Period will begin on the day the previous Guarantee Period ends. The
new interest rate will be our then current declared rate for a
Guarantee Period of that length; or
2) instruct us to apply your money to one or more new Guarantee Periods of
your choice. The new Guarantee Period(s) will begin on the day the
previous Guarantee Period ends. The new interest rate will be our then
current declared rate for those Guarantee Periods; or
3) instruct us to transfer all or a portion of your money to one or more
Variable Sub-Accounts. We will effect the transfer on the day we
receive your instructions. We will not adjust the amount transferred to
include a Market Value Adjustment; or
4) withdraw all or a portion of your money. You may be required to pay a
withdrawal charge, but we will not adjust the amount withdrawn to
include a Market Value Adjustment. You may also be required to pay
premium taxes and withholding (if applicable). The amount withdrawn
will be deemed to have been withdrawn on the day the previous
Guarantee Period ends. Unless you specify otherwise, amounts not
withdrawn will be applied to a new Guarantee Period of the shortest
duration available. The new Guarantee Period will begin on the day
the previous Guarantee Period ends.
Under our Automatic Laddering Program, you may choose, in advance, to use
Guarantee Periods of the same length for all renewals. You can select this
Program at any time during the Accumulation Phase, including on the Issue Date.
We will apply renewals to Guarantee Periods of the selected length until you
direct us in writing to stop. We may stop offering this Program at any time. For
additional information on the Automatic Laddering Program, please call our
Customer Service unit at 1-800-692-4682.
Market Value Adjustment
All withdrawals in excess of the Preferred Withdrawal Amount, and transfers from
a Guarantee Period, other than those taken during the 30 day period after such
Guarantee Period expires, are subject to a Market Value Adjustment. A positive
Market Value Adjustment also may apply upon payment of a death benefit and when
you apply amounts currently invested in a Guarantee Period to an Income Plan
(unless paid or applied during the 30 day period after such Guarantee Period
expires). We will not apply a Market Value Adjustment to a transfer you make as
part of a Dollar Cost Averaging Program. We also will not apply a Market Value
Adjustment to a withdrawal you make:
o within the Preferred Withdrawal Amount as described on page __, or
o to satisfy the IRS minimum distribution rules for the Contract.
We apply the Market Value Adjustment to reflect changes in interest rates from
the time you first allocate money to a Guarantee Period to the time it is
removed from that Guarantee Period. We calculate the Market Value Adjustment by
comparing the Treasury Rate for a period equal to the Guarantee Period at its
inception to the Treasury Rate for a period equal to the time remaining in the
Guarantee Period when you remove your money. "Treasury Rate" means the U.S.
Treasury Note Constant Maturity Yield as reported in Federal Reserve Bulletin
Release H.15.
The Market Value Adjustment may be positive or negative, depending on changes in
interest rates. As such, you bear the investment risk associated with changes in
interest rates. If interest rates increase significantly, the Market Value
Adjustment and any withdrawal charge, premium taxes, and income tax withholding
(if applicable) could reduce the amount you receive upon full withdrawal of your
Contract Value to an amount that is less than the purchase payment plus interest
at the minimum guaranteed interest rate under the Contract. Death benefits will
not be subject to a negative [aggregate] Market Value Adjustment.
Generally, if the Treasury Rate at the time you allocate money to a Guarantee
Period is higher than the applicable current Treasury Rate for a period equal to
the time remaining in the Guarantee Period, then the Market Value Adjustment
will result in a higher amount payable to you or transferred. Conversely, if the
Treasury Rate at the time you allocate money to a Guarantee Period is lower than
the applicable Treasury Rate for a period equal to the time remaining in the
Guarantee Period, then the Market Value Adjustment will result in a lower amount
payable to you or transferred.
For example, assume that you purchase a Contract and you select an initial
Guarantee Period of 5 years and the 5 year Treasury Rate for that duration is
4.50%. Assume that at the end of 3 years, you make a partial withdrawal. If, at
that later time, the current 2 year Treasury Rate is 4.20%, then the Market
Value Adjustment will be positive, which will result in an increase in the
amount payable to you. Conversely, if the current 2 year Treasury Rate is 4.80%,
then the Market Value Adjustment will be negative, which will result in a
decrease in the amount payable to you.
The formula for calculating Market Value Adjustments is set forth in Appendix A
to this prospectus, which also contains additional examples of the application
of the Market Value Adjustment.
<PAGE>
INVESTMENT ALTERNATIVES: Transfers
- --------------------------------------------------------------------------------
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase, you may transfer Contract Value among the
investment alternatives. You may not transfer Contract Value into the Dollar
Cost Averaging Option. You may request transfers in writing on a form that we
provided or by telephone according to the procedure described below. We
currently do not assess, but reserve the right to assess, a $10 charge on each
transfer in excess of 12 per Contract Year. We treat transfers to or from more
than one Fund on the same day as one transfer.
We will process transfer requests that we receive before 4:00 p.m. Eastern Time
on any Valuation Date using the Accumulation Unit Values for that Date. We will
process requests completed after 4:00 p.m. on any Valuation Date using the
Accumulation Unit Values for the next Valuation Date. The Contract permits us to
defer transfers from the Fixed Account for up to 6 months from the date we
receive your request. If we decide to postpone transfers from the Fixed Account
Options for 10 days or more, we will pay interest as required by applicable law.
Any interest would be payable from the date we receive the transfer request to
the date we make the transfer.
If you transfer an amount from a Guarantee Period other than during the 30 day
period after such Guarantee Period expires, we will increase or decrease the
amount by a Market Value Adjustment.
We reserve the right to waive any transfer restrictions.
TRANSFERS DURING THE PAYOUT PHASE
During the Payout Phase, you may make transfers among the Variable Sub-Accounts
to change the relative weighting of the Variable Sub-Accounts on which your
variable income payments will be based. In addition, you will have a limited
ability to make transfers from the Variable Sub-Accounts to increase the
proportion of your income payments consisting of fixed income payments. You may
not, however, convert any portion of your right to receive fixed income payments
into variable income payments.
You may not make any transfers for the first 6 months after the Payout Start
Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make
transfers from the Variable Sub-Accounts to increase the proportion of your
income payments consisting of fixed income payments. Your transfers must be at
least 6 months apart.
TELEPHONE TRANSFERS
You may make transfers by telephone by calling 1-800-692-4682, if you first send
us a completed authorization form. The cut off time for telephone transfer
requests is 4:00 p.m. Eastern Time. In the event that the New York Stock
Exchange closes early, i.e., before 4:00 p.m. Eastern Time, or in the event that
the Exchange closes early for a period of time but then reopens for trading on
the same day, we will process telephone transfer requests as of the close of the
Exchange on that particular day. We will not accept telephone requests received
at any telephone number other than the number that appears in this paragraph or
received after the close of trading on the Exchange.
We may suspend, modify or terminate the telephone transfer privilege at any time
without notice.
We use procedures that we believe provide reasonable assurance that the
telephone transfers are genuine. For example, we tape telephone conversations
with persons purporting to authorize transfers and request identifying
information. Accordingly, we disclaim any liability for losses resulting from
allegedly unauthorized telephone transfers. However, if we do not take
reasonable steps to help ensure that a telephone authorization is valid, we may
be liable for such losses.
DOLLAR COST AVERAGING PROGRAM
Through the Dollar Cost Averaging Program, you may automatically transfer a set
amount at regular intervals during the Accumulation Phase from any Variable
Sub-Account, the Dollar Cost Averaging Option, or the 3, 5, 7 or 10 year
Guarantee Periods, to any Variable Sub-Account. The interval between transfers
may be monthly, quarterly, semi-annually, or annually. Transfers made through
dollar cost averaging must be $50 or more.
We will not charge a transfer fee for transfers made under this Program, nor
will such transfers count against the 12 transfers you can make each Contract
Year without paying a transfer fee. In addition, we will not apply the Market
Value Adjustment to these transfers.
The theory of dollar cost averaging is that if purchases of equal dollar amounts
are made at fluctuating prices, the aggregate average cost per unit will be less
than the average of the unit prices on the same purchase dates. However,
participation in this program does not assure you of a greater profit from your
purchases under the Program nor will it prevent or necessarily reduce losses in
a declining market.
Call or write us for instructions on how to enroll.
AUTOMATIC FUND REBALANCING PROGRAM
Once you have allocated your money among the Variable Sub-Accounts, the
performance of each Sub-Account may cause a shift in the percentage you
allocated to each Sub-Account. If you select our Automatic Fund Rebalancing
Program, we will automatically rebalance the Contract Value in each Variable
Sub-Account and return it to the desired percentage allocations.
We will rebalance your account each quarter according to your instructions. We
will transfer amounts among the Variable Sub-Accounts to achieve the percentage
allocations you specify. You can change your allocations at any time by
contacting us in writing or by telephone. The new allocation will be effective
with the first rebalancing that occurs after we receive your request. We are not
responsible for rebalancing that occurs prior to receipt of your request.
Example:
Assume that you want your initial purchase payment split among 2
Variable Sub-Accounts. You want 40% to be in the AIM V.I. Diversified
Income Variable Sub-Account and 60% to be in the AIM V.I. Growth
Variable Sub-Account. Over the next 2 months the bond market does very
well while the stock market performs poorly. At the end of the first
quarter, the AIM V.I. Diversified Income Variable Sub-Account now
represents 50% of your holdings because of its increase in value. If
you choose to have your holdings rebalanced quarterly, on the first day
of the next quarter we would sell some of your units in the AIM V.I.
Diversified Income Variable Sub-Account and use the money to buy more
units in the AIM V.I. Growth Variable Sub-Account so that the
percentage allocations would again be 40% and 60% respectively.
The Automatic Fund Rebalancing Program is available only during the Accumulation
Phase. The transfers made under the Program do not count towards the 12
transfers you can make without paying a transfer fee, and are not subject to a
transfer fee.
Fund rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your Contract
Value allocated to the better performing segments.
<PAGE>
EXPENSES
- --------------------------------------------------------------------------------
As a Contract owner, you will bear, directly or indirectly, the charges and
expenses described below.
CONTRACT MAINTENANCE CHARGE
During the Accumulation Phase, on each Contract Anniversary, we will deduct a
$35 contract maintenance charge from your Contract Value invested in each
Variable Sub-Account in proportion to the amount invested. We also will deduct a
full contract maintenance charge if you withdraw your entire Contract Value,
unless your Contract qualifies for a waiver, described below. During the Payout
Phase, we will deduct the charge proportionately from each income payment.
The charge is for the cost of maintaining each Contract and the Variable
Account. Maintenance costs include expenses we incur in billing and collecting
purchase payments; keeping records; processing death claims, cash withdrawals,
and policy changes; proxy statements; calculating Accumulation Unit Values and
income payments; and issuing reports to Contract owners and regulatory agencies.
We cannot increase the charge. We will waive this charge if:
o total purchase payments equal $50,000 or more, or
o all money is allocated to the Fixed Account Options, as of the Contract
Anniversary.
After the Payout Start Date, we will waive this charge if:
o as of the Payout Start Date, total purchase payments are $50,000 or more,
or
o all income payments are fixed amount income payments.
MORTALITY AND EXPENSE RISK CHARGE
We deduct a mortality and expense risk charge daily at an annual rate of 1.00%
of the daily net assets you have invested in the Variable Sub-Accounts (1.20% if
you select the Enhanced Death Benefit Option). The mortality and expense risk
charge is for all the insurance benefits available with your Contract (including
our guarantee of annuity rates and the death benefits), for certain expenses of
the Contract, and for assuming the risk (expense risk) that the current charges
will be sufficient in the future to cover the cost of administering the
Contract. If the charges under the Contract are not sufficient, then we will
bear the loss. We charge an additional .20% for the Enhanced Death Benefit
Option to compensate us for the additional risk that we accept by providing the
rider.
We guarantee the mortality and expense risk charge and we cannot increase it. We
assess the mortality and expense risk charge during both the Accumulation Phase
and the Payout Phase.
ADMINISTRATIVE EXPENSE CHARGE
We deduct an administrative expense charge daily at an annual rate of 0.10% of
the average daily net assets you have invested in the Variable Sub-Accounts. We
intend this charge to cover actual administrative expenses that exceed the
revenues from the contract maintenance charge. There is no necessary
relationship between the amount of administrative charge imposed on a given
Contract and the amount of expenses that may be attributed to that Contract. We
assess this charge each day during the Accumulation Phase and the Payout Phase.
We guarantee that we will not raise this charge.
TRANSFER FEE
We do not currently impose a fee upon transfers among the investment
alternatives. However, we reserve the right to charge $10 per transfer after the
12th transfer in each Contract Year. We will not charge a transfer fee on
transfers that are part of a Dollar Cost Averaging or Automatic Fund Rebalancing
Program.
WITHDRAWAL CHARGE
We may assess a withdrawal charge of up to 7% of the purchase payment(s) you
withdraw in excess of the Preferred Withdrawal Amount, adjusted by a Market
Value Adjustment. The charge declines annually to 0% after 7 complete years from
the day we receive the purchase payment being withdrawn. A schedule showing how
the charge declines appears on page __. During each Contract Year, you can
withdraw up to 15% of the Contract Value as of the beginning of that Contract
Year without paying the charge. Unused portions of this 15% "Preferred
Withdrawal Amount" are not carried forward to future Contract Years.
We determine the withdrawal charge by:
o multiplying the percentage corresponding to the number of complete years
since we received the purchase payment being withdrawn, times
o the part of each purchase payment withdrawal that is in excess of the
Preferred Withdrawal Amount, adjusted by a Market Value Adjustment.
We will deduct withdrawal charges, if applicable, from the amount paid. For
purposes of the withdrawal charge, we will treat withdrawals as coming from the
oldest purchase payments first. However, for federal income tax purposes, please
note that withdrawals are considered to have come first from earnings in the
Contract. Thus, for tax purposes, earnings are considered to come out first,
which means you pay taxes on the earnings portion of your withdrawal.
We do not apply a withdrawal charge in the following situations:
o on the Payout Start Date (a withdrawal charge may apply if you elect to
receive income payments for a specified period of less than 120 months);
o the death of the Contract owner (Annuitant if Contract owner is not a
natural person);
o withdrawals taken to satisfy IRS minimum distribution rules for the
Contract; and
o withdrawals made after all purchase payments have been withdrawn.
We use the amounts obtained from the withdrawal charge to pay sales commissions
and other promotional or distribution expenses associated with marketing the
Contracts. To the extent that the withdrawal charge does not cover all sales
commissions and other promotional or distribution expenses, we may use any of
our corporate assets, including potential profit which may arise from the
mortality and expense risk charge or any other charges or fee described above,
to make up any difference.
Withdrawals may be subject to tax penalties or income tax and a Market Value
Adjustment. You should consult your own tax counsel or other tax advisers
regarding any withdrawals.
PREMIUM TAXES
Currently, we do not make deductions for premium taxes under the Contract
because New York does not charge premium taxes on annuities.
DEDUCTION FOR VARIABLE ACCOUNT INCOME TAXES
We are not currently maintaining a provision for taxes. In the future, however,
we may establish a provision for taxes if we determine, in our sole discretion,
that we will incur a tax as a result of the operation of the Variable Account.
We will deduct for any taxes we incur as a result of the operation of the
Variable Account, whether or not we previously made a provision for taxes and
whether or not it was sufficient. Our status under the Internal Revenue Code is
briefly described in the Statement of Additional Information.
OTHER EXPENSES
Each Fund deducts advisory fees and other expenses from its assets. You
indirectly bear the charges and expenses of the Funds whose shares are held by
the Variable Sub-Accounts. These fees and expenses are described in the
accompanying prospectus for the Funds. For a summary of these charges and
expenses, see pages ___ above. We may receive compensation from A I M Advisors,
Inc., for administrative services we provide to the Funds.
<PAGE>
ACCESS TO YOUR MONEY
- --------------------------------------------------------------------------------
You can withdraw some or all of your Contract Value at any time prior to the
Payout Start Date. Withdrawals also are available under limited circumstances on
or after the Payout Start Date. See "Income Plans" on page __.
The amount payable upon withdrawal is the Contract Value next computed after we
receive the request for a withdrawal at our service center, adjusted by any
Market Value Adjustment, less any withdrawal charges, contract maintenance
charges, income tax withholding, penalty tax, and any premium taxes. We will pay
withdrawals from the Variable Account within 7 days of receipt of the request,
subject to postponement in certain circumstances.
You can withdraw money from the Variable Account or the Fixed Account Options.
To complete a partial withdrawal from the Variable Account, we will cancel
Accumulation Units in an amount equal to the withdrawal and any applicable
withdrawal charge and premium taxes.
You must name the investment alternative from which you are taking the
withdrawal. If none is named, then the withdrawal request is incomplete and
cannot be honored.
In general, you must withdraw at least $50 at a time. You also may withdraw a
lesser amount if you are withdrawing your entire interest in a Variable
Sub-Account.
If you request a total withdrawal, you must return your Contract to us.
POSTPONEMENT OF PAYMENTS
We may postpone the payment of any amounts due from the Variable Account under
the Contract if:
1) The New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on the Exchange is otherwise restricted;
2) An emergency exists as defined by the SEC; or
3) The SEC permits delay for your protection.
In addition, we may delay payments or transfers from the Fixed Account Options
for up to 6 months or shorter period if required by law. If we delay payment or
transfer for 10 days or more, we will pay interest as required by law. Any
interest would be payable from the date we receive the withdrawal request to the
date we make the payment or transfer.
SYSTEMATIC WITHDRAWAL PROGRAM
You may choose to receive systematic withdrawal payments on a monthly,
quarterly, semi-annual, or annual basis at any time prior to the Payout Start
Date. The minimum amount of each systematic withdrawal is $50. Systematic
Withdrawals are not available from the Dollar Cost Averaging Option. At our
discretion, systematic withdrawals may not be offered in conjunction with the
Dollar Cost Averaging Program or the Automatic Fund Rebalancing Program.
Depending on fluctuations in the net asset value of the Variable Sub-Accounts
and the value of the Fixed Account Options, systematic withdrawals may reduce or
even exhaust the Contract Value. Income taxes may apply to systematic
withdrawals. Please consult your tax advisor before taking any withdrawal.
We will make systematic withdrawal payments to you or your designated payee. We
may modify or suspend the Systematic Withdrawal Program and charge a processing
fee for the service. If we modify or suspend the Systematic Withdrawal Program,
existing systematic withdrawal payments will not be affected.
MINIMUM CONTRACT VALUE
If your request for a partial withdrawal would reduce the Contract Value to less
than $1,000, we may treat it as a request to withdraw your entire Contract
Value. We will, however, ask you to confirm your withdrawal request before
terminating your Contract. If we terminate your Contract, we will distribute to
you its Contract Value, adjusted by any applicable Market Value Adjustment, less
withdrawal and other charges, income tax withholding, and premium taxes. Your
Contract will terminate if you withdraw all of your Contract Value.
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INCOME PAYMENTS
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PAYOUT START DATE
You select the Payout Start Date in your application. The Payout Start Date is
the day that we apply your money to an Income Plan. The Payout Start Date must
be no later than the Annuitant's 90th birthday.
You may change the Payout Start Date at any time by notifying us in writing of
the change at least 30 days before the scheduled Payout Start Date. Absent a
change, we will use the Payout Start Date stated in your Contract.
INCOME PLANS
An "Income Plan" is a series of payments on a scheduled basis to you or to
another person designated by you. You may choose and change your choice of
Income Plan until 30 days before the Payout Start Date. If you do not select an
Income Plan, we will make income payments in accordance with Income Plan 1 with
guaranteed payments for 10 years. After the Payout Start Date, you may not make
withdrawals (except as described below) or change your choice of Income Plan.
Three Income Plans are available under the Contract. Each is available to
provide:
o fixed income payments;
o variable income payments; or
o a combination of the two.
The three Income Plans are:
Income Plan 1 -- Life Income with Guaranteed Payments. Under this
plan, we make periodic income payments for at least as long as the
Annuitant lives. If the Annuitant dies before we have made all of the
guaranteed income payments, we will continue to pay the remainder of
the guaranteed income payments as required by the Contract.
Income Plan 2 -- Joint and Survivor Life Income with Guaranteed
Payments. Under this plan, we make periodic income payments for at
least as long as either the Annuitant or the joint Annuitant is alive.
If both the Annuitant and the joint Annuitant die before we have made
all of the guaranteed income payments, we will continue to pay the
remainder of the guaranteed income payments as required by the
Contract.
Income Plan 3 -- Guaranteed Payments for a Specified Period (5 Years
to 30 Years). Under this plan, we make periodic income payments for
the period you have chosen. These payments do not depend on the
Annuitant's life. Income payments for less than 120 months may be
subject to a withdrawal charge. We will deduct the mortality and
expense risk charge from variable income payments even though we may
not bear any mortality risk.
The length of any guaranteed payment period under your selected Income Plan
generally will affect the dollar amounts of each income payment. As a general
rule, longer guarantee periods result in lower income payments, all other things
being equal. For example, if you choose an Income Plan with payments that depend
on the life of the Annuitant but with no minimum specified period for guaranteed
payments, the income payments generally will be greater than the income payments
made under the same Income Plan with a minimum specified period for guaranteed
payments.
If you choose Income Plan 1 or 2, or, if available, another Income Plan with
payments that continue for the life of the Annuitant or joint Annuitant, we may
require proof of age and sex of the Annuitant or joint Annuitant before starting
income payments, and proof that the Annuitant or joint Annuitant is alive before
we make each payment. Please note that under such Income Plans, if you elect to
take no minimum guaranteed payments, it is possible that the payee could receive
only 1 income payment if the Annuitant and any joint Annuitant both die before
the second income payment, or only 2 income payments if they die before the
third income payment, and so on.
Generally, you may not make withdrawals after the Payout Start Date. One
exception to this rule applies if you are receiving variable income payments
that do not depend on the life of the Annuitant (such as under Income Plan 3).
In that case you may terminate the Variable Account portion of the income
payments at any time and receive a lump sum equal to the present value of the
remaining variable payments due. A withdrawal charge may apply. We assess
applicable premium taxes against all income payments.
We may make other Income Plans available. You may obtain information about them
by writing or calling us.
You must apply at least the Contract Value in the Fixed Account Options on the
Payout Start Date to fixed income payments. If you wish to apply any portion of
your Fixed Account Option balance to provide variable income payments, you
should plan ahead and transfer that amount to the Variable Sub-Accounts prior to
the Payout Start Date. If you do not tell us how to allocate your Contract Value
among fixed and variable income payments, we will apply your Contract Value in
the Variable Account to variable income payments and your Contract Value in the
Fixed Account Options to fixed income payments.
We will apply your Contract Value, adjusted by a Market Value Adjustment, less
applicable taxes to your Income Plan on the Payout Start Date. If the Contract
owner has not made any purchase payments for at least 3 years preceding the
Payout Start Date, and either the Contract Value is less than $2,000 or not
enough to provide an initial payment of at least $20, and state law permits, we
may:
o terminate the Contract and pay you the Contract Value, adjusted by any
Market Value Adjustment and less any applicable taxes, in a lump sum
instead of the periodic payments you have chosen, or
o reduce the frequency of your payments so that each payment will be at least
$20.
VARIABLE INCOME PAYMENTS
The amount of your variable income payments depends upon the investment results
of the Variable Sub-Accounts you select, the premium taxes you pay, the age and
sex of the Annuitant, and the Income Plan you choose. We guarantee that the
payments will not be affected by (a) actual mortality experience and (b) the
amount of our administration expenses.
We cannot predict the total amount of your variable income payments. Your
variable income payments may be more or less than your total purchase payments
because (a) variable income payments vary with the investment results of the
underlying Funds and (b) the Annuitant could live longer or shorter than we
expect based on the tables we use.
In calculating the amount of the periodic payments in the annuity tables in the
Contract, we assumed an annual investment rate of 3%. If the actual net
investment return of the Variable Sub-Accounts you choose is less than this
assumed investment rate, then the dollar amount of your variable income payments
will decrease. The dollar amount of your variable income payments will increase,
however, if the actual net investment return exceeds the assumed investment
rate. The dollar amount of the variable income payments stays level if the net
investment return equals the assumed investment rate. Please refer to the
Statement of Additional Information for more detailed information as to how we
determine variable income payments.
FIXED INCOME PAYMENTS
We guarantee income payment amounts derived from any Fixed Account Option for
the duration of the Income Plan. We calculate the fixed income payments by:
1) adjusting the portion of the Contract Value in any Fixed Account Option on
the Payout Start Date by any applicable Market Value Adjustment;
2) deducting any applicable premium tax; and
3) applying the resulting amount to the greater of (a) the appropriate value
from the income payment table in your Contract or (b) such other value as
we are offering at that time.
We may defer making fixed income payments for a period of up to 6 months or such
shorter time as state law may require. If we defer payments for 10 business days
or more, we will pay interest as required by law from the date we receive the
withdrawal request to the date we make payment.
CERTAIN EMPLOYEE BENEFIT PLANS
The Contracts offered by this prospectus contain income payment tables that
provide for different payments to men and women of the same age. However, we
reserve the right to use income payment tables that do not distinguish on the
basis of sex to the extent permitted by law. In certain employment-related
situations, employers are required by law to use the same income payment tables
for men and women. Accordingly, if the Contract is to be used in connection with
an employment-related retirement or benefit plan, you should consult with legal
counsel as to whether the purchase of a Contract is appropriate. For qualified
plans, where it is appropriate, we may use income payment tables that do not
distinguish on the basis of sex.
<PAGE>
DEATH BENEFITS
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We will pay a death benefit if, prior to the Payout Start Date:
1) any Contract owner dies or,
2) the Annuitant dies, if the Contract owner is not a natural person.
We will pay the death benefit to the new Contract owner as determined
immediately after the death. The new Contract owner would be a surviving
Contract owner or, if none, the Beneficiary(ies). In the case of the death of an
Annuitant, we will pay the death benefit to the current Contract owner.
A request for payment of the death benefit must include "Due Proof of Death." We
will accept the following documentation as Due Proof of Death:
o a certified copy of a death certificate,
o a certified copy of a decree of a court of competent jurisdiction as to the
finding of death, or
o any other proof acceptable to us.
DEATH BENEFIT AMOUNT
Prior to the Payout Start Date, the death benefit is equal to the greatest of:
1) the Contract Value as of the date we determine the death benefit, or
2) the Settlement Value (that is, the amount payable on a full withdrawal of
Contract Value) on the date we determine the death benefit, or
3) the sum of all purchase payments reduced by a withdrawal adjustment, as
defined below, or
4) the highest Contract Value calculated on each Death Benefit Anniversary
prior to the date we determine the death benefit, increased by purchase
payments made since that Death Benefit Anniversary and reduced by a
withdrawal adjustment as defined below.
When a death benefit is paid, only a positive [aggregate] MVA amount, if any, is
applied to the account value attributable to amounts withdrawn from Guarantee
Period(s).
A "Death Benefit Anniversary" is every seventh Contract Anniversary during the
Accumulation Phase. For example, the 7th, 14th, and 21st Contract Anniversaries
are the first three Death Benefit Anniversaries.
The "withdrawal adjustment" is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) is the withdrawal amount;
(b) is the Contract Value immediately prior to the withdrawal; and
(c) is the value of the applicable death benefit alternative immediately
prior to the withdrawal.
ENHANCED DEATH BENEFIT OPTION
The Enhanced Death Benefit Option, is an optional benefit that you may select.
This Option is only available if the oldest Contract owner is between the ages
of 0 and 80 on the Issue Date. If the Contract owner is a living individual, the
Enhanced Death Benefit applies only for the death of the Contract owner. If the
Contract owner is not a living individual, the enhanced death benefit applies
only for the death of the Annuitant. For Contracts with the Enhanced Death
Benefit Rider, the death benefit will be the greatest of (1) through (4) above,
or (5) the Enhanced Death Benefit. When a death benefit is paid, only a positive
aggregate MVA amount, if any, is applied to the account value attributable to
amounts withdrawn from Guaranteed Period(s).
The enhanced death benefit will never be greater than the maximum death benefit
allowed by any nonforfeiture laws which govern the Contract.
Enhanced Death Benefit. The Enhanced Death Benefit on the Issue Date is equal to
the initial purchase payment. On each Contract Anniversary, we will recalculate
your Enhanced Death Benefit to equal the greater of your Contract Value on that
date, or the most recently calculated Enhanced Death Benefit . We also will
recalculate your Enhanced Death Benefit whenever you make an additional purchase
payment or a partial withdrawal. Additional purchase payments will increase the
Enhanced Death Benefit dollar-for-dollar. Withdrawals will reduce the Enhanced
Death Benefit by an amount equal to a withdrawal adjustment computed in the
manner described above under "Death Benefit Amount." In the absence of any
withdrawals or purchase payments, the Enhanced Death Benefit will be the
greatest of all Contract Anniversary Contract Values on or before the date we
calculate the death benefit.
We will calculate Anniversary Values for each Contract Anniversary prior to the
oldest Contract owner's or the Annuitant's, if the Contract owner is not a
natural person, 85th birthday. After age 85, we will recalculate the Enhanced
Death Benefit only for purchase payments and withdrawals. The Enhanced Death
Benefit will never be greater than the maximum death benefit allowed by any
non-forfeiture laws which govern the Contract.
Death Benefit Payments
A death benefit will be paid:
1) if the Contract owner elects to receive the death benefit distributed in a
single payment within 180 days of the date of death, and
2) if the death benefit is paid as of the day the value of the death benefit
is determined.
Otherwise, the Settlement Value will be paid. We reserve the right to extend the
180 day period when we will pay the death benefit. The Settlement Value paid
will be the Settlement Value next computed on or after the requested
distribution date for payment, or on the mandatory distribution date of 5 years
after the date of death.
In any event, the entire value of the Contract must be distributed within 5
years after the date of death unless an Income Plan is elected or a surviving
spouse continues the Contract in accordance with the provisions described below.
If the Contract owner eligible to receive the death benefit is not a natural
person, the Contract owner may elect to receive the distribution upon death in
one or more distributions.
If the Contract owner is a natural person, the Contract owner may elect to
receive the death benefit either in one or more distributions, or by periodic
payments through an Income Plan. Payments from the Income Plan must begin within
one year of the date of death and must be payable throughout:
o the life of the Contract owner; or
o a period not to exceed the life expectancy of the Contract owner; or
o the life of the Contract owner with payments guaranteed for a period not to
exceed the life expectancy of the Contract owner.
If the surviving spouse of the deceased Contract owner is the new Contract
owner, then the spouse may elect one of the options listed above or may continue
the Contract in the Accumulation Phase as if the death had not occurred. The
Contract may only be continued once. On the day the Contract is continued, the
Contract Value will be the death benefit at the end of the Valuation Date after
we receive due proof of death. Prior to the Payout Start Date, the death benefit
of the continued Contract will be the greater of:
(a) the sum of all purchase payments reduced by a withdrawal adjustment, as
defined in the death benefit provision, or
(b) the Contract Value on the date we determine the death benefit.
<PAGE>
MORE INFORMATION
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ALLSTATE LIFE OF NEW YORK
Allstate New York is the issuer of the Contract. Allstate Life of New York is a
stock life insurance company organized under the laws of the State of New York.
Allstate New York was incorporated in 1967 and was known as "Financial Life
Insurance Company" from 1967 to 1978. From 1978 to 1984, Allstate Life of New
York was known as "PM Life Insurance Company." Since 1984 the company has been
known as "Allstate Life Insurance Company of New York."
Allstate Life of New York is currently licensed to operate in New York. Our home
office is One Allstate Drive, Farmingville, New York 11738. Our servicing center
is in Northbrook, Illinois.
Allstate Life of New York is a wholly owned subsidiary of Allstate Insurance
Company, a stock property-liability insurance company incorporated under the
laws of Illinois. With the exception of the directors qualifying shares, all of
the outstanding capital stock of Allstate Insurance Company is owned by The
Allstate Corporation.
Several independent rating agencies regularly evaluate life insurers'
claims-paying ability, quality of investments, and overall stability. A.M. Best
Company assigns Allstate Life of New York the financial performance rating of
A+(g). Standard & Poor's Insurance Rating Services assigns an AA+ (Very Strong)
financial strength rating and Moody's assigns an Aa2 (Excellent) financial
strength rating to Allstate New York. These ratings do not reflect the
investment performance of the Variable Account. We may from time to time
advertise these ratings in our sales literature.
THE VARIABLE ACCOUNT
Allstate Life of New York established the Allstate Life of New York Separate
Account A on December 15, 1995. We have registered the Variable Account with the
SEC as a unit investment trust. The SEC does not supervise the management of the
Variable Account or Allstate Life of New York.
We own the assets of the Variable Account. The Variable Account is a segregated
asset account under New York law. That means we account for the Variable
Account's income, gains and losses separately from the results of our other
operations. It also means that only the assets of the Variable Account that are
in excess of the reserves and other Contract liabilities with respect to the
Variable Account are subject to liabilities relating to our other operations.
Our obligations arising under the Contracts are general corporate obligations of
Allstate Life of New York.
The Variable Account consists of 13 Variable Sub-Accounts which are available
through the Contracts. Each Variable Sub-Account invests in a corresponding
Fund. We may add new Variable Sub-Accounts or eliminate one or more of them, if
we believe marketing, tax, or investment conditions so warrant. We do not
guarantee the investment performance of the Variable Account, its Sub-Accounts
or the Funds. We may use the Variable Account to fund our other annuity
contracts. We will account separately for each type of annuity contract funded
by the Variable Account.
THE FUNDS
Dividends and Capital Gain Distributions. We automatically reinvest all
dividends and capital gains distributions from the Funds in shares of the
distributing Fund at their net asset value.
Voting Privileges. As a general matter, you do not have a direct right to vote
the shares of the Funds held by the Variable Sub-Accounts to which you have
allocated your Contract Value. Under current law, however, you are entitled to
give us instructions on how to vote those shares on certain matters. Based on
our present view of the law, we will vote the shares of the Funds that we hold
directly or indirectly through the Variable Account in accordance with
instructions that we receive from Contract owners entitled to give such
instructions.
As a general rule, before the Payout Start Date, the Contract owner or anyone
with a voting interest is the person entitled to give voting instructions. The
number of shares that a person has a right to instruct will be determined by
dividing the Contract Value allocated to the applicable Variable Sub-Account by
the net asset value per share of the corresponding Fund as of the record date of
the meeting. After the Payout Start Date, the person receiving income payments
has the voting interest. The payee's number of votes will be determined by
dividing the reserve for such Contract allocated to the applicable Variable
Sub-account by the net asset value per share of the corresponding Fund. The
votes decrease as income payments are made and as the reserves for the Contract
decrease.
We will vote shares attributable to Contracts for which we have not received
instructions, as well as shares attributable to us, in the same proportion as we
vote shares for which we have received instructions, unless we determine that we
may vote such shares in our own discretion. We will apply voting instructions to
abstain on any item to be voted on a pro-rata basis to reduce the votes eligible
to be cast.
We reserve the right to vote Fund shares as we see fit without regard to voting
instructions to the extent permitted by law. If we disregard voting
instructions, we will include a summary of that action and our reasons for that
action in the next semi-annual financial report we send to you.
Changes in Funds. If the shares of any of the Funds are no longer available for
investment by the Variable Account or if, in our judgment, further investment in
such shares is no longer desirable in view of the purposes of the Contract, we
may eliminate that Fund and substitute shares of another eligible investment
fund. Any substitution of securities will comply with the requirements of the
1940 Act. We also may add new Variable Sub-Accounts that invest in additional
mutual funds. We will notify you in advance of any changes.
Conflicts of Interest. Certain of the Funds sell their shares to Variable
Accounts underlying both variable life insurance and variable annuity contracts.
It is conceivable that in the future it may be unfavorable for variable life
insurance Variable Accounts and variable annuity Variable Accounts to invest in
the same Fund. The boards of directors of these Funds monitor for possible
conflicts among Variable Accounts buying shares of the Funds. Conflicts could
develop for a variety of reasons. For example, differences in treatment under
tax and other laws or the failure by a Variable Account to comply with such laws
could cause a conflict. To eliminate a conflict, a Fund's board of directors may
require a Variable Account to withdraw its participation in a Fund. A Fund's net
asset value could decrease if it had to sell investment securities to pay
redemption proceeds to a Variable Account withdrawing because of a conflict.
THE CONTRACT
Distribution. Allstate Life Financial Services Inc. ("ALFS"), located at 3100
Sanders Road, Northbrook, IL 60062-7154, serves as distributor of the Contracts.
ALFS is a wholly owned subsidiary of Allstate Life Insurance Company. ALFS is a
registered broker dealer under the Securities and Exchange Act of 1934, as
amended ("Exchange Act"), and is a member of the National Association of
Securities Dealers, Inc.
We will pay commissions to broker-dealers who sell the Contracts. Commissions
paid may vary, but we estimate that the total commissions paid on all Contract
sales will not exceed 8% of any purchase payments. Sometimes, we also pay the
broker-dealer a persistency bonus in addition to the standard commissions. A
persistency bonus is not expected to exceed 1.2%, on an annual basis, of the
purchase payments considered in connection with the bonus. These commissions are
intended to cover distribution expenses. In some states, Contracts may be sold
by representatives or employees of banks which may be acting as broker-dealers
without separate registration under the Exchange Act , pursuant to legal and
regulatory exceptions.
Allstate New York does not pay ALFS a commission for distribution of the
Contracts. The underwriting agreement with ALFS provides that we will reimburse
ALFS for any liability to Contract owners arising out of services rendered or
Contracts issued.
Administration. We have primary responsibility for all administration of the
Contracts and the Variable Account.
We provide the following administrative services, among others:
o issuance of the Contracts;
o maintenance of Contract owner records;
o Contract owner services;
o calculation of unit values;
o maintenance of the Variable Account; and
o preparation of Contract owner reports.
We will send you Contract statements and transaction confirmations at least
annually. The annual statement details values and specific Contract data for
each particular Contract. You should notify us promptly in writing of any
address change. You should read your statements and confirmations carefully and
verify their accuracy. You should contact us promptly if you have a question
about a periodic statement. We will investigate all complaints and make any
necessary adjustments retroactively, but you must notify us of a potential error
within a reasonable time after the date of the questioned statement. If you wait
too long, we will make the adjustment as of the date that we receive notice of
the potential error.
We also will provide you with additional periodic and other reports, information
and prospectuses as may be required by federal securities laws.
QUALIFIED PLANS
If you use the Contract with a qualified plan, the plan may impose different or
additional conditions or limitations on withdrawals, waivers of withdrawal
charges, death benefits, Payout Start Dates, income payments, and other Contract
features. In addition, adverse tax consequences may result if qualified plan
limits on distributions and other conditions are not met. Please consult your
qualified plan administrator for more information.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate Life of
New York on certain federal securities law matters. All matters of New York law
pertaining to the Contracts, including the validity of the Contracts and
Allstate Life of New York's right to issue such Contracts under New York
insurance law, have been passed upon by Michael J. Velotta, General Counsel of
Allstate Life of New York.
YEAR 2000
Allstate Life of New York is heavily dependent upon complex computer systems for
all phases of its operations, including customer service, and policy and
contract administration. Since many of Allstate Life of New York's older
computer software programs recognize only the last two digits of the year in any
date, some software may fail to operate properly in or after the year 1999, if
the software is not reprogrammed or replaced, ("Year 2000 Issue"). Allstate Life
of New York believes that many of its counterparties and suppliers also have
Year 2000 Issues which could affect Allstate Life of New York. In 1995, Allstate
Insurance Company commenced a plan intended to mitigate and/or prevent the
adverse effects of Year 2000 Issues. These strategies include normal development
and enhancement of new and existing systems, upgrades to operating systems
already covered by maintenance agreements and modifications to existing systems
to make them Year 2000 compliant. The plan also includes Allstate Life of New
York actively working with its major external counterparties and suppliers to
assess their compliance efforts and Allstate Life of New York's exposure to
them. Allstate Life of New York presently believes that it will resolve the Year
2000 Issue in a timely manner, and the financial impact will not materially
affect its results of operations, liquidity or financial position. Year 2000
costs are and will be expensed as incurred.
<PAGE>
TAXES
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The following discussion is general and is not intended as tax advice. Allstate
New York makes no guarantee regarding the tax treatment of any Contract or
transaction involving a Contract.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on your individual circumstances.
If you are concerned about any tax consequences with regard to your individual
circumstances, you should consult a competent tax adviser.
Taxation of Annuities in General
Tax Deferral. Generally, you are not taxed on increases in the Contract Value
until a distribution occurs. This rule applies only where:
1) the Contract owner is a natural person,
2) the investments of the Variable Account are "adequately
diversified" according to Treasury Department regulations, and
3) Allstate Life of New York is considered the owner of the Variable
Account assets for federal income tax purposes.
Non-natural Owners. As a general rule, annuity contracts owned by non-natural
persons such as corporations, trusts, or other entities are not treated as
annuity contracts for federal income tax purposes. The income on such contracts
is taxed as ordinary income received or accrued by the owner during the taxable
year. Please see the Statement of Additional Information for a discussion of
several exceptions to the general rule for Contracts owned by non-natural
persons.
Diversification Requirements. For a Contract to be treated as an annuity for
federal income tax purposes, the investments in the Variable Account must be
"adequately diversified" consistent with standards under Treasury Department
regulations. If the investments in the Variable Account are not adequately
diversified, the contract will not be treated as an annuity contract for federal
income tax purposes. As a result, the income on the Contract will be taxed as
ordinary income received or accrued by the owner during the taxable year.
Although Allstate New York does not have control over the Funds or their
investments, we expect the Funds to meet the diversification requirements.
Ownership Treatment. The IRS has stated that you will be considered the owner of
Variable Account assets if you possess incidents of ownership in those assets,
such as the ability to exercise investment control over the assets. At the time
the diversification regulations were issued, the Treasury Department announced
that the regulations do not provide guidance concerning circumstances in which
investor control of the Variable Account investments may cause an investor to be
treated as the owner of the Variable Account. The Treasury Department also
stated that future guidance would be issued regarding the extent that owners
could direct sub-account investments without being treated as owners of the
underlying assets of the Variable Account.
Your rights under the Contract are different than those described by the IRS in
rulings in which it found that contract owners were not owners of Variable
Account assets. For example, you have the choice to allocate premiums and
Contract Values among more investment alternatives. Also, you may be able to
transfer among investment alternatives more frequently than in such rulings.
These differences could result in you being treated as the owner of the Variable
Account. If this occurs, income and gain from the Variable Account assets would
be includible in your gross income. Allstate New York does not know what
standards will be set forth in any regulations or rulings which the Treasury
Department may issue. It is possible that future standards announced by the
Treasury Department could adversely affect the tax treatment of your Contract.
We reserve the right to modify the Contract as necessary to attempt to prevent
you from being considered the federal tax owner of the assets of the Variable
Account. However, we make no guarantee that such modification to the Contract
will be successful.
Taxation of Partial and Full Withdrawals. If you make a partial withdrawal under
a non-Qualified Contract, amounts received are taxable to the extent the
Contract Value, without regard to surrender charges, exceeds the investment in
the Contract. The investment in the Contract is the gross premium paid for the
Contract minus any amounts previously received from the Contract if such amounts
were properly excluded from your gross income. If you make a partial withdrawal
under a Qualified Contract, the portion of the payment that bears the same ratio
to the total payment that the investment in the Contract (i.e., nondeductible
IRA contributions, after tax contributions to qualified plans) bears to the
contract value, is excluded from your income. If you make a full withdrawal
under a non-Qualified Contract or a Qualified Contract, the amount received will
be taxable only to the extent it exceeds the investment in the contract.
"Nonqualified distributions" from Roth IRAs are treated as made from
contributions first and are included in gross income only to the extent that
distributions exceed contributions. "Qualified distributions" from Roth IRAs are
not included in gross income. "Qualified distributions" are any distributions
made more than 5 taxable years after the taxable year of the first contribution
to any Roth IRA and which are:
o made on or after the date the individual attains age 59 1/2,
o made to a beneficiary after the Contract owner's death,
o attributable to the Contract owner being disabled, or
o for a first time home purchase (first time home purchases are subject to a
lifetime limit of $10,000).
If you transfer a non-Qualified Contract without full and adequate consideration
to a person other than your spouse (or to a former spouse incident to a
divorce), you will be taxed on the difference between the Contract Value and the
investment in the Contract at the time of transfer. Except for certain Qualified
Contracts, any amount you receive as a loan under a Contract, and any assignment
or pledge (or agreement to assign or pledge) of the Contract Value is treated as
a withdrawal of such amount or portion.
Taxation of Annuity Payments. Generally, the rule for income taxation of annuity
payments received from a non-Qualified Contract provides for the return of your
investment in the Contract in equal tax-free amounts over the payment period.
The balance of each payment received is taxable. For fixed annuity payments, the
amount excluded from income is determined by multiplying the payment by the
ratio of the investment in the Contract (adjusted for any refund feature or
period certain) to the total expected value of annuity payments for the term of
the contract. If you elect variable annuity payments, the amount excluded from
taxable income is determined by dividing the investment in the Contract by the
total number of expected payments. The annuity payments will be fully taxable
after the total amount of the investment in the Contract is excluded using these
ratios. If you die, and annuity payments cease before the total amount of the
investment in the Contract is recovered, the unrecovered amount will be allowed
as a deduction for your last taxable year.
Taxation of Annuity Death Benefits. Death of a Contract owner, or death of the
Annuitant if the Contract is owned by a non-natural person, will cause a
distribution of death benefits from a Contract. Generally, such amounts are
included in income as follows:
1) if distributed in a lump sum, the amounts are taxed in the same manner
as a full withdrawal, or
2) if distributed under an annuity option, the amounts are taxed in the
same manner as an annuity payment. Please see the Statement of
Additional Information for more detail on distribution at death
requirements.
Penalty Tax on Premature Distributions. A 10% penalty tax applies to the taxable
amount of any premature distribution from a non-Qualified Contract. The penalty
tax generally applies to any distribution made prior to the date you attain age
59 1/2. However, no penalty tax is incurred on distributions:
1) made on or after the date the Contract owner attains age 59 1/2;
2) made as a result of the Contract owner's death or disability;
3) made in substantially equal periodic payments over the owner's life or
life expectancy,
4) made under an immediate annuity; or
5) attributable to investment in the contract before August 14, 1982.
You should consult a competent tax advisor to determine if any other exceptions
to the penalty apply to your situation. Similar exceptions may apply to
distributions from Qualified Contracts.
Aggregation of Annuity Contracts. All non-qualified deferred annuity contracts
issued by Allstate New York (or its affiliates) to the same Contract owner
during any calendar year will be aggregated and treated as one annuity contract
for purposes of determining the taxable amount of a distribution.
TAX QUALIFIED CONTRACTS
Contracts may be used as investments with certain qualified plans such as:
o Individual Retirement Annuities or Accounts (IRAs) under Section 408 of the
Code;
o Roth IRAs under Section 408A of the Code;
o Simplified Employee Pension Plans under Section 408(k) of the Code;
o Savings Incentive Match Plans for Employees (SIMPLE) Plans under Section
408(p) of the Code;
o Tax Sheltered Annuities under Section 403(b) of the Code;
o Corporate and Self Employed Pension and Profit Sharing Plans; and
o State and Local Government and Tax-Exempt Organization Deferred
Compensation Plans.
In the case of certain qualified plans, the terms of the plans may govern the
right to benefits, regardless of the terms of the Contract.
Restrictions Under Section 403(b) Plans. Section 403(b) of the Tax Code provides
tax-deferred retirement savings plans for employees of certain non-profit and
educational organizations. Under Section 403(b), any Contract used for a 403(b)
plan must provide that distributions attributable to salary reduction
contributions made after December 31, 1988, and all earnings on salary reduction
contributions, may be made only:
1) on or after the date the employee
o attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
2) on account of hardship (earnings on salary reduction contributions may
not be distributed on the account of hardship).
These limitations do not apply to withdrawals where Allstate New York is
directed to transfer some or all of the Contract Value to another 403(b) plan.
INCOME TAX WITHHOLDING
Allstate Life of New York is required to withhold federal income tax at a rate
of 20% on all "eligible rollover distributions" unless you elect to make a
"direct rollover" of such amounts to an IRA or eligible retirement plan.
Eligible rollover distributions generally include all distributions from
Qualified Contracts, excluding IRAs, with the exception of:
1) required minimum distributions, or
2) a series of substantially equal periodic payments made over a period
of at least 10 years, or,
3) over the life (joint lives) of the participant (and beneficiary).
Allstate Life of New York may be required to withhold federal and state income
taxes on any distributions from non-Qualified Contracts or Qualified Contracts
that are not eligible rollover distributions, unless you notify us of your
election to not have taxes withheld.
<PAGE>
ANNUAL REPORTS AND OTHER DOCUMENTS
- ------------------------------------------------------------------------------
Allstate Life of New York's annual report on Form 10-K for the year ended
December 31, 1998 and quarterly reports on 10-Q for the quarter ended March 31,
1999 and June 30, 1999 are incorporated herein by reference, which means that
they are legally a part of this prospectus.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Exchange Act are also incorporated herein by reference, which means
that they also legally become a part of this prospectus.
Statements in this prospectus, or in documents that we file later with the SEC
and that legally become a part of this prospectus, may change or supersede
statements in other documents that are legally part of this prospectus.
Accordingly, only the statement that is changed or replaced will legally be a
part of this prospectus.
We file our Exchange Act documents and reports, including our annual and
quarterly reports on Form 10-K and Form 10-Q electronically on the SEC's "EDGAR"
system using the identifying number CIK No. 0000948255. The SEC maintains a Web
site that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the SEC. The
address of the site is http://www.sec.gov. You also can view these materials at
the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. For more information on the operations of SEC's Public Reference Room,
call 1-800-SEC-0330.
If you have received a copy of this prospectus, and would like a free copy of
any document incorporated herein by reference (other than exhibits not
specifically incorporated by reference into the text of such documents), please
write or call us at Customer Service, P.O. Box 94038, Palatine, Illinois
60094-4038 (telephone: 1-800-692-4682).
<PAGE>
PERFORMANCE INFORMATION
- ------------------------------------------------------------------------------
We may advertise the performance of the Variable Sub-Accounts, including yield
and total return information. Yield refers to the income generated by an
investment in a Variable Sub-Account over a specified period. Total return
represents the change, over a specified period of time, in the value of an
investment in a Variable Sub-Account after reinvesting all income distributions.
All performance advertisements will include, as applicable, standardized yield
and total return figures that reflect the deduction of insurance charges, the
contract maintenance charge, and withdrawal charge. Performance advertisements
also may include total return figures that reflect the deduction of insurance
charges, but not the contract maintenance or withdrawal charges. The deduction
of such charges would reduce the performance shown. In addition, performance
advertisements may include aggregate, average, year-by-year, or other types of
total return figures.
Performance information for periods prior to the inception date of the Variable
Sub-Accounts will be based on the historical performance of the corresponding
Funds for the periods beginning with the inception dates of the Funds and
adjusted to reflect current Contract expenses. You should not interpret these
figures to reflect actual historical performance of the Variable Account.
We may include in advertising and sales materials tax deferred compounding
charts and other hypothetical illustrations that compare currently taxable and
tax deferred investment programs based on selected tax brackets. Our
advertisements also may compare the performance of our Variable Sub-Accounts
with: (a) certain unmanaged market indices, including but not limited to the Dow
Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman
Bond Index; and/or (b) other management investment companies with investment
objectives similar to the underlying funds being compared. In addition, our
advertisements may include the performance ranking assigned by various
publications, including the Wall Street Journal, Forbes, Fortune, Money,
Barron's, Business Week, USA Today, and statistical services, including Lipper
Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey,
the Variable Annuity Research Data Survey, and SEI.
<PAGE>
[back cover]
APPENDIX A
MARKET VALUE ADJUSTMENT
The Market Value Adjustment is based on the following:
I = the Treasury Rate for a maturity equal to the applicable Guarantee
Period for the week preceding the establishment of the Guarantee Period.
N = the number of whole and partial years from the date we receive the
withdrawal, transfer or death benefit request, or from the Payout Start
Date to the end of the Guarantee Period.
J = the Treasury Rate for a maturity of length N for the week preceding
the receipt of the withdrawal, transfer, death benefit, or income payment
request. If a note with a maturity of length N is not available, a
weighted average will be used. If N is one year or less, J will be the
1-year Treasury Rate.
Treasury Rate means the U.S. Treasury Note Constant Maturity yield as
reported in Federal Reserve Bulletin Release H.15.
The Market Value Adjustment factor is determined from the following formula:
.9 X (I - J) X N
To determine the Market Value Adjustment, we will multiply the Market Value
Adjustment factor by the amount transferred, withdrawn (in excess of the
Preferred Withdrawal Amount), paid as a death benefit, or applied to an Income
Plan, from a Guarantee Period at any time other than during the 30 day period
after such Guarantee Period expires.
<PAGE>
EXAMPLES OF MARKET VALUE ADJUSTMENT
Purchase Payment: $10,000 allocated to a Guarantee Period
Guarantee Period: 5 years
Guaranteed Interest Rate: 4.50%
5 Year Treasury Rate at the time the
Guarantee Period is established: 4.50%
Full Surrender: End of Contract Year 3
NOTE: These examples assume that premium taxes are not applicable.
EXAMPLE 1: (Assumes declining interest rates)
<TABLE>
<CAPTION>
<S> <C>
Step 1. Calculate Contract Value at End of Contract Year 3: 10,000.00 X (1.0450)3 = $11,411.66
Step 2. Calculate the Preferred Withdrawal Amount: .15 X 10,000.00 = $1,500.00
Step 3. Calculate the Market Value Adjustment: I = 4.5%
J = 4.2%
730 Days
--------
N = 365 days = 2
Market Value Adjustment Factor: .9 X (I-J) X N
= .9 X (.045 - .042) X (730/365) = .0054
Market Value
Adjustment =
Market Value
Adjustment
Factor X
Amount Subject
to Market
Value
Adjustment:
= .0054 X 11,411.66-1,500.00 = $53.52
Step 4. Calculate the Withdrawal Charge: .05 X (10,000.00 - 1,500.00 + 53.52 )=427.68
Step 5. Calculate the amount received by Customers as a
result of full withdrawal at the end of Contract Year 3: 11,411.66 - 427.68 + 53.52 = $11,037.50
</TABLE>
<PAGE>
EXAMPLE 2: (Assumes rising interest rates)
<TABLE>
<CAPTION>
<S> <C>
Step 1. Calculate Contract Value at End of Contract Year 3: 10,000.00 X (1.045)3 = $11,411.66
Step 2. Calculate the Preferred Withdrawal Amount: .15 X (10,000.00) = $1,500.00
Step 3. Calculate the Market Value Adjustment: I = 4.5%
J = 4.8%
730 days
--------
N = 365 days = 2
Market Value Adjustment Factor: .9 X (I-J) X N
= .9 X (.045 - .048) X (730/365) = -.0054
Market Value Adjustment = Market Value Adjustment Factor
X Amount Subject to Market Value Adjustment
-.0054 X (11,411.66 - 1,500) = - $53.52
Step 4. Calculate the Withdrawal Charge: -.05 X (10,000.00 - 1,500 - 53.52) = $422.32
Step 5. Calculate the amount received by customers as a
result of full withdrawal at the end of Contract Year 3: 11,411.66 - 422.32 - 53.52 = $10,935.82
</TABLE>
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
Description Page
Additions, Deletions or Substitutions of Investments.........................
The Contract.................................................................
Purchase of Contracts...............................................
Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers)........
Performance Information......................................................
Calculation of Accumulation Unit Values......................................
Calculation of Variable Income Payments......................................
General Matters..............................................................
Incontestability....................................................
Settlements.........................................................
Safekeeping of the Variable Account's Assets........................
Premium Taxes.......................................................
Tax Reserves........................................................
Federal Tax Matters..........................................................
Qualified Plans..............................................................
Experts......................................................................
Financial Statements.........................................................
-----------------------------------------------
This prospectus does not constitute an offering in any jurisdiction in which
such offering may not lawfully be made. We do not authorize anyone to provide
any information or representations regarding the offering described in this
prospectus other than as contained in this prospectus.
<PAGE>
THE AIM LIFETIME PLUS(sm) II VARIABLE ANNUITY
<TABLE>
<CAPTION>
<S> <C>
Allstate Life Insurance Company of New York Statement of Additional Information
Allstate Life of New York Separate Account A dated ________, 1999
One Allstate Drive, Farmingville, New York 11738
</TABLE>
Service Center
P.O. Box 94038, Palatine, Il 60094-4038]1 (800) 692-4682
This Statement of Additional Information supplements the information in the
prospectus for the AIM Lifetime Plus(sm) II Variable Annuity. This Statement of
Additional Information is not a prospectus. You should read it with the
prospectus, dated _________, 1999, for the Contract. You may obtain a prospectus
by calling or writing us at the address or telephone number listed above.
Except as otherwise noted, this Statement of Additional Information uses the
same defined terms as the prospectus.
TABLE OF CONTENTS
Description Page
Additions, Deletions or Substitutions of Investments
The Contract
Purchase of Contracts
Tax-free Exchanges (1035 Exchanges, Rollovers
and Transfers)
Performance Information
Calculation of Accumulation Unit Values
Calculation of Variable Income Payments
General Matters
Incontestability
Settlements
Safekeeping of the Variable Account's Assets
Premium Taxes
Tax Reserves
Federal Tax Matters
Qualified Plans
Experts
Financial Statements
<PAGE>
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
- ------------------------------------------------------------------------------
We may add, delete, or substitute the Fund shares held by any Variable
Sub-Account to the extent the law permits. We may substitute shares of any Fund
with those of another Fund of the same or different mutual fund if the shares of
the Fund are no longer available for investment, or if we believe investment in
any Fund would become inappropriate in view of the purposes of the Variable
Account.
We will not substitute shares attributable to a Contract owner's interest in a
Variable Sub-Account until we have notified the Contract owner of the change,
and until the Securities and Exchange Commission has approved the change, to the
extent such notification and approval are required by law. Nothing contained in
this Statement of Additional Information shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts, or from
effecting a conversion between series or classes of contracts on the basis of
requests made by Contract owners.
We also may establish additional Variable Sub-Accounts or series of Variable
Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a
new Fund of the same or different mutual fund. We may establish new Variable
Sub-Accounts when we believe marketing needs or investment conditions warrant.
We determine the basis on which we will offer any new Variable Sub-Accounts in
conjunction with the Contract to existing Contract owners. We may eliminate one
or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or
investment conditions so warrant.
We may, by appropriate endorsement, change the Contract as we believe necessary
or appropriate to reflect any substitution or change in the Funds. If we believe
the best interests of persons having voting rights under the Contracts would be
served, we may operate the Variable Account as a management company under the
Investment Company Act of 1940 or we may withdraw its registration under such
Act if such registration is no longer required.
<PAGE>
THE CONTRACT
- ------------------------------------------------------------------------------
The Contract is primarily designed to aid individuals in long-term financial
planning. You can use it for retirement planning regardless of whether the
retirement plan qualifies for special federal income tax treatment.
PURCHASE OF CONTRACTS
We offer the Contracts to the public through banks as well as brokers licensed
under the federal securities laws and state insurance laws. The principal
underwriter for the Variable Account, Allstate Life Financial Services, Inc.
("ALFS"), distributes the Contracts. ALFS is an affiliate of Allstate Life of
New York. The offering of the Contracts is continuous. We do not anticipate
discontinuing the offering of the Contracts, but we reserve the right to do so
at any time.
TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS)
We accept purchase payments that are the proceeds of a Contract in a transaction
qualifying for a tax-free exchange under Section 1035 of the Internal Revenue
Code ("Code"). Except as required by federal law in calculating the basis of the
Contract, we do not differentiate between Section 1035 purchase payments and
non-Section 1035 purchase payments.
We also accept "rollovers" and transfers from Contracts qualifying as
tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts
("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an
IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other
Qualified Contracts to the extent necessary to comply with federal tax laws. For
example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the
Contracts will continue to qualify for special tax treatment. A Contract owner
contemplating any such exchange, rollover or transfer of a Contract should
contact a competent tax adviser with respect to the potential effects of such a
transaction.
<PAGE>
PERFORMANCE INFORMATION
- ------------------------------------------------------------------------------
From time to time we may advertise the "standardized," "non-standardized," and
"adjusted historical" total returns of the Variable Sub-Accounts, as described
below. Please remember that past performance is not an estimate or guarantee of
future performance and does not necessarily represent the actual experience of
amounts invested by a particular Contract owner.
STANDARDIZED TOTAL RETURNS
A Variable Sub-Account's standardized total return represents the average annual
total return of that Sub-Account over a particular period. We compute
standardized total return by finding the annual percentage rate that, when
compounded annually, will accumulate a hypothetical $1,000 purchase payment to
the redeemable value at the end of the one, five or ten year period, or for a
period from the date of commencement of the Variable Sub-Account's operations,
if shorter than any of the foregoing. We use the following formula prescribed by
the SEC for computing standardized total return:
1000(1 + T)n = ERV
where:
T = average annual total return
ERV = ending redeemable value of a hypothetical $1,000 payment
made at the beginning of 1, 5, or 10 year periods or
shorter period
n = number of years in the period
1000 = hypothetical $1,000 investment
When factoring in the withdrawal charge assessed upon redemption, we exclude the
Preferred Withdrawal Amount, which is the amount you can withdraw from the
Contract without paying a withdrawal charge. We also use the withdrawal charge
that would apply upon redemption at the end of each period. Thus, for example,
when factoring in the withdrawal charge for a one year standardized total return
calculation, we would use the withdrawal charge that applies to a withdrawal of
a purchase payment made one year prior.
When factoring in the contract maintenance charge, we pro rate the charge by
dividing (i) the contract maintenance charges by (ii) the average Contract size
of $50,000. We then multiply the resulting percentage by a hypothetical $1,000
investment.
The standardized total returns for the Variable Sub-Accounts for the periods
ended June 30, 1999 are set out below. No standardized total returns are shown
for the AIM V.I. Money Market Variable Sub-Account. In addition, no
standardized total returns are shown of the AIM V.I. Aggressive Growth, AIM V.I.
Balanced, AIM V.I. Capital Development, and AIM V.I. High Yield Variable
Sub-Accounts, which commenced operations as of the date of this Statement of
Additional Information.
The AIM Lifetime Plus II Variable Annuity Contracts were first offered to the
public on __________, 1999. Accordingly, performance figures for the Variable
Sub-Accounts prior to that date reflect the historical performance of the
Variable Sub-Accounts, adjusted to reflect the current level of charges that
apply to the Variable Sub-Accounts under the Contracts, including the withdrawal
charge and contract maintenance charge described above.
The Variable Sub-Accounts commenced operations on the following dates:
AIM V.I. Capital Appreciation October 14, 1996
AIM V.I. Diversified Income October 14, 1996
AIM V.I. Global Utilities October 14, 1996
AIM V.I. Government Securities October 14, 1996
AIM V.I. Growth October 14, 1996
AIM V.I. Growth & Income October 14, 1996
AIM V.I. International Equity October 14, 1996
AIM V.I. Value October 14, 1996
AIM V.I. Aggressive Growth*
AIM V.I. Balanced*
AIM V.I. Capital Development*
AIM V.I. High Yield*
*Have not commenced operations as of the date of this registration statement.
(WITHOUT THE ENHANCED DEATH BENEFIT OPTION)
<TABLE>
<CAPTION>
Variable Sub-Account One Year Five Years Since Inception
<S> <C> <C> <C>
AIM V.I. Capital Appreciation 22.59% 15.71% 15.54%
AIM V.I. Diversified Income -2.98% 5.20% 4.28%
AIM V.I. Global Utilities 10.42% 13.68% 12.71%
AIM V.I. Government Securities -2.72% 4.04% 3.03%
AIM V.I. Growth 30.89% 31.67% 17.99%
AIM V.I. Growth & Income 27.80% 19.85% 18.63%
AIM V.I. International Equity 14.37% 10.44% 11.32%
AIM V.I. Value 30.89% 21.67% 17.99%
(WITH THE ENHANCED DEATH BENEFIT OPTION)
Variable Sub-Account One Year Five Years Since Inception
AIM V.I. Capital Appreciation 22.84% 15.94% 9.69%
AIM V.I. Diversified Income -2.78% 5.41% 1.82%
AIM V.I. Global Utilities 10.64% 13.90% 14.16%
AIM V.I. Government Securities -2.52% 4.25% 2.38%
AIM V.I. Growth 31.15% 21.91% 20.98%
AIM V.I. Growth & Income 28.05% 20.09% 18.82%
AIM V.I. International Equity 14.60% 10.66% 9.52%
AIM V.I. Value 30.32% 20.61% 20.75%
</TABLE>
NON-STANDARDIZED TOTAL RETURNS
From time to time, we also may quote average annual total returns that do not
reflect the withdrawal charge. We calculate these "non-standardized total
returns" in exactly the same way as the standardized total returns described
above, except that we replace the ending redeemable value of the hypothetical
account for the period with an ending redeemable value for the period that does
not take into account any charges on amounts surrendered.
In addition, we may advertise the total return over different periods of time by
means of aggregate, average, year-by-year or other types of total return
figures. Such calculations would not reflect deductions for withdrawal charges
which may be imposed on the Contracts which, if reflected, would reduce the
performance quoted. The formula for computing such total return quotations
involves a per unit change calculation. This calculation is based on the
Accumulation Unit Value at the end of the defined period divided by the
Accumulation Unit Value at the beginning of such period, minus 1. The periods
included in such advertisements are "year-to-date" (prior calendar year end to
the day of the advertisement); "year to most recent quarter" (prior calendar
year end to the end of the most recent quarter); "the prior calendar year"; "
'n' most recent Calendar Years"; and "Inception (commencement of the
Sub-account's operation) to date" (day of the advertisement).
The non-standardized total returns for the Variable Sub-Accounts for the periods
ended June 30, 1999 are set out below. No non-standardized total returns are
shown for the AIM V.I. Money Market Variable Sub-Account. In addition, no
standardized total returns are shown of the AIM V.I. Aggressive Growth, AIM V.I.
Balanced, AIM V.I. Capital Development, and AIM V.I. High Yield Variable
Sub-Accounts, which commenced operations as of the date of this Statement of
Additional Information. Performance figures for periods prior to the
availability of the Contracts reflect the historical performance of the Variable
Sub-Accounts, adjusted to reflect the current level of charges that apply to the
Variable Sub-Accounts under the Contracts, excluding any charges imposed or
amounts surrendered.
The inception date of each Variable Sub-Account appears under "Standardized
Total Returns," above.
(WITHOUT THE ENHANCED DEATH BENEFIT OPTION)
<TABLE>
<CAPTION>
Variable Sub-Account One Year Five Years Since Inception*
<S> <C> <C> <C>
AIM V.I. Capital Appreciation 30.40% 10.70% 16.04%
AIM V.I. Diversified Income -2.92% 6.78% 4.75%
AIM V.I. Global Utilities 17.46% 11.06% 12.94%
AIM V.I. Government Securities -2.66% 5.54% 3.50%
AIM V.I. Growth 39.23% 14.89% 18.51%
AIM V.I. Growth & Income 35.94% 13.71% 19.44%
AIM V.I. International Equity 21.66% 7.14% 11.81%
AIM V.I. Value 38.35% 13.80% 19.40%
(WITH THE ENHANCED DEATH BENEFIT OPTION)
Variable Sub-Account One Year Five Years Since Inception*
AIM V.I. Capital Appreciation 30.66% 10.88% 11.70%
AIM V.I. Diversified Income -2.73% 6.95% 3.69%
AIM V.I. Global Utilities 17.70% 11.23% 16.24%
AIM V.I. Government Securities -2.46% 5.71% 4.26%
AIM V.I. Growth 39.51% 15.07% 23.19%
AIM V.I. Growth & Income 36.21% 13.90% 20.99%
AIM V.I. International Equity 21.90% 7.32% 11.53%
AIM V.I. Value 38.62% 13.98% 22.96%
</TABLE>
ADJUSTED HISTORICAL TOTAL RETURNS
We may advertise the total return for periods prior to the date that the
Variable Sub-Accounts commenced operations. We will calculate such "adjusted
historical total returns" using the historical performance of the underlying
Funds and adjusting such performance to reflect the current level of charges
that apply to the Variable Sub-Accounts under the Contract, the contract
maintenance charge and the appropriate withdrawal charge.
The adjusted historical total returns for the Variable Sub-Accounts for the
periods ended June 30, 1999 are set out below. No adjusted historical total
returns are shown for the AIM V.I. Money Market Variable Sub-Account.
The following list provides the inception date for the Fund corresponding to
each of the Variable Sub-Accounts included in the tables.
Inception Date of
Variable Sub-Account Corresponding Fund
- -------------------- ------------------
AIM V.I. Aggressive Growth May 1, 1998
AIM V.I. Balanced May 1, 1998
AIM V.I. Capital Appreciation May 5, 1993
AIM V.I. Capital Development May 1, 1998
AIM V.I. Diversified Income May 5, 1993
AIM V.I. Global Utilities May 2, 1994
AIM V.I. Government Securities May 5, 1993
AIM V.I. Growth May 5, 1993
AIM V.I. Growth & Income May 2, 1994
AIM V.I. High Yield May 1, 1998
AIM V.I. International Equity May 5, 1993
AIM V.I. Value Fund May 5, 1993
(WITHOUT THE ENHANCED DEATH BENEFIT OPTION)
<TABLE>
<CAPTION>
10 Years or
Variable Sub-Account One Year Five Years Since Inception of
Fund (if less)
<S> <C> <C> <C>
AIM V.I. Aggressive Growth 35.24% N/A 6.22%
AIM V.I. Balanced 14.95% N/A 10.22%
AIM V.I. Capital Appreciation 30.66% 10.88% 11.70%
AIM V.I. Capital Development 17.37% N/A -6.69%
AIM V.I. Diversified Income -2.73% 6.95% 3.69%
AIM V.I. Global Utilities 17.70% 11.23% 16.24%
AIM V.I. Government Securities -2.46% 5.71% 4.26%
AIM V.I. Growth 39.51% 15.07% 23.19%
AIM V.I. Growth & Income 36.21% 13.90% 20.99%
AIM V.I. International Equity 5.30% N/A -3.13%
AIM V.I. High Yield 21.90% 7.32% 11.53%
AIM V.I. Value 38.62% 13.98% 22.96%
(WITH THE ENHANCED DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception of
Fund (if less)
AIM V.I. Aggressive Growth 38.98% N/A 6.00%
AIM V.I. Balanced 14.72% N/A 10.00%
AIM V.I. Capital Appreciation 30.40% 10.70% 16.04%
AIM V.I. Capital Development 17.14% N/A -6.88%
AIM V.I. Diversified Income -2.92% 6.78% 4.75%
AIM V.I. Global Utilities 17.46% 11.06% 12.94%
AIM V.I. Government Securities -2.66% 5.54% 3.50%
AIM V.I. Growth 39.23% 14.89% 18.51%
AIM V.I. Growth & Income 35.94% 13.71% 19.44%
AIM V.I. International Equity 5.09% N/A -3.32%
AIM V.I. High Yield 21.66% 7.14% 11.81%
AIM V.I. Value 38.35% 13.80% 19.40%
</TABLE>
<PAGE>
Calculation of Accumulation Unit Values
- ------------------------------------------------------------------------------
The value of Accumulation Units will change each Valuation Period according to
the investment performance of the Fund shares purchased by each Variable
Sub-Account and the deduction of certain expenses and charges. A "Valuation
Period" is the period from the end of one Valuation Date and continues to the
end of the next Valuation Date. A Valuation Date ends at the close of regular
trading on the New York Stock Exchange (currently 3:00 p.m.
Central Time).
The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period
equals the Accumulation Unit Value as of the immediately preceding Valuation
Period, multiplied by the Net Investment Factor (described below) for that
Sub-Account for the current Valuation Period.
NET INVESTMENT FACTOR
The Net Investment Factor for a Valuation Period is a number representing the
change, since the last Valuation Period, in the value of Sub-account assets per
Accumulation Unit due to investment income, realized or unrealized capital gain
or loss, deductions for taxes, if any, and deductions for the mortality and
expense risk charge and administrative expense charge. We determine the Net
Investment Factor for each Variable Sub-Account for any Valuation Period by
dividing (A) by (B) and subtracting (C) from the result, where:
(A) is the sum of:
(1) the net asset value per share of the Fund underlying the
Variable Sub-Account determined at the end of the current
Valuation Period; plus,
(2) the per share amount of any dividend or capital gain
distributions made by the Fund underlying the Variable
Sub-Account during the current Valuation Period;
(B) is the net asset value per share of the Fund underlying the Variable
Sub-Account determined as of the end of the immediately preceding
Valuation Period; and
(C) is the sum of the annualized mortality and expense risk and
administrative expense charges divided by the number of days in the
current calendar year and then multiplied by the number of calendar days
in the current Valuation Period.
<PAGE>
CALCULATION OF VARIABLE INCOME PAYMENTS
- ------------------------------------------------------------------------------
We calculate the amount of the first variable income payment under an Income
Plan by applying the Contract Value allocated to each Variable Sub-Account less
any applicable premium tax charge deducted at the time, to the income payment
tables in the Contract. We divide each such portion of the first variable
annuity income payment by the Variable Sub-Account's then current Annuity Unit
value to determine the number of annuity units ("Annuity Units") upon which
later income payments will be based. To determine income payments after the
first, we simply multiply the number of Annuity Units determined in this manner
for each Variable Sub-Account by the then current Annuity Unit value ("Annuity
Unit Value") for that Variable Sub-Account.
CALCULATION OF ANNUITY UNIT VALUES
Annuity Units in each Variable Sub-Account are valued separately and Annuity
Unit Values will depend upon the investment experience of the particular Fund in
which the Variable Sub-Account invests. We calculate the Annuity Unit Value for
each Variable Sub-Account at the end of any Valuation Period by:
o multiplying the Annuity Unit Value at the end of the immediately preceding
Valuation Period by the Variable Sub-Account's Net Investment Factor
(described in the preceding section) for the Period; and then
o dividing the product by the sum of 1.0 plus the assumed investment rate for
the Valuation Period.
The assumed investment rate adjusts for the interest rate assumed in the
income payment tables used to determine the dollar amount of the first variable
income payment, and is at an effective annual rate which is disclosed in the
Contract.
We determine the amount of the first variable income payment paid under an
Income Plan using the income payment tables set out in the Contracts. The
Contracts include tables that differentiate on the basis of sex, except in
states that require the use of unisex tables.
<PAGE>
GENERAL MATTERS
- -----------------------------------------------------------------------------
INCONTESTABILITY
We will not contest the Contract after we issue it.
SETTLEMENTS
The Contract must be returned to us prior to any settlement. We must receive due
proof of the Contract owner(s) death (or Annuitant's death if there is a
non-natural Contract owner) before we will settle a death claim.
SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS
We hold title to the assets of the Variable Account. We keep the assets
physically segregated and separate and apart from our general corporate assets.
We maintain records of all purchases and redemptions of the Fund shares held by
each of the Variable Sub-Accounts.
The Funds do not issue stock certificates. Therefore, we hold the Variable
Account's assets in open account in lieu of stock certificates. See the Funds'
prospectuses for a more complete description of the custodian of the Funds.
PREMIUM TAXES
Applicable premium tax rates depend on the Contract owner's state of residency
and the insurance laws and our status in those states where premium taxes are
incurred. Premium tax rates may be changed by legislation, administrative
interpretations, or judicial acts. The State of New York currently does not
impose a premium tax.
TAX RESERVES
We do not establish capital gains tax reserves for any Variable Sub-Account nor
do we deduct charges for tax reserves because we believe that capital gains
attributable to the Variable Account will not be taxable. However, we reserve
the right to deduct charges to establish tax reserves for potential taxes on
realized or unrealized capital gains.
<PAGE>
FEDERAL TAX MATTERS
- ------------------------------------------------------------------------------
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE
NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION
INVOLVING A CONTRACT.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on the individual circumstances
of each person. If you are concerned about any tax consequences with regard to
your individual circumstances, you should consult a competent tax adviser.
TAXATION OF ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
Allstate Life of New York is taxed as a life insurance company under Part I of
Subchapter L of the Internal Revenue Code. Since the Variable Account is not an
entity separate from Allstate Life of New York, and its operations form a part
of Allstate Life of New York, it will not be taxed separately as a "Regulated
Investment Company" under Subchapter M of the Code. Investment income and
realized capital gains of the Variable Account are automatically applied to
increase reserves under the contract. Under existing federal income tax law,
Allstate Life of New York believes that the Variable Account investment income
and capital gains will not be taxed to the extent that such income and gains are
applied to increase the reserves under the contract. Accordingly, Allstate Life
of New York does not anticipate that it will incur any federal income tax
liability attributable to the Variable Account, and therefore Allstate Life of
New York does not intend to make provisions for any such taxes. If Allstate Life
of New York is taxed on investment income or capital gains of the Variable
Account, then Allstate Life of New York may impose a charge against the Variable
Account in order to make provision for such taxes.
EXCEPTIONS TO THE NON-NATURAL OWNER RULE
There are several exceptions to the general rule that annuity contracts held by
a non-natural owner are not treated as annuity contracts for federal income tax
purposes. Contracts will generally be treated as held by a natural person if the
nominal owner is a trust or other entity which holds the Contract as agent for a
natural person. However, this special exception will not apply in the case of an
employer who is the nominal owner of an annuity contract under a non-qualified
deferred compensation arrangement for its employees. Other exceptions to the
non-natural owner rule are: (1) contracts acquired by an estate of a decedent by
reason of the death of the decedent; (2) certain qualified contracts; (3)
contracts purchased by employers upon the termination of certain qualified
plans; (4) certain contracts used in connection with structured settlement
agreements, and (5) contracts purchased with a single premium when the annuity
starting date is no later than a year from purchase of the annuity and
substantially equal periodic payments are made, not less frequently than
annually, during the annuity period.
IRS REQUIRED DISTRIBUTION AT DEATH RULES
In order to be considered an annuity contract for federal income tax purposes,
an annuity contract must provide: (1) if any owner dies on or after the annuity
start date but before the entire interest in the contract has been distributed,
the remaining portion of such interest must be distributed at least as rapidly
as under the method of distribution being used as of the date of the owner's
death; (2) if any owner dies prior to the annuity start date, the entire
interest in the contract will be distributed within five years after the date of
the owner's death. These requirements are satisfied if any portion of the
owner's interest which is payable to (or for the benefit of) a designated
beneficiary is distributed over the life of such beneficiary (or over a period
not extending beyond the life expectancy of the beneficiary) and the
distributions begin within one year of the owner's death. If the owner's
designated beneficiary is the surviving spouse of the owner, the contract may be
continued with the surviving spouse as the new owner. If the owner of the
contract is a non-natural person, then the annuitant will be treated as the
owner for purposes of applying the distribution at death rules. In addition, a
change in the annuitant on a contract owned by a non-natural person will be
treated as the death of the owner.
<PAGE>
QUALIFIED PLANS
- ------------------------------------------------------------------------------
The Contract may be used with several types of qualified plans. The tax rules
applicable to participants in such qualified plans vary according to the type of
plan and the terms and conditions of the plan itself. Adverse tax consequences
may result from excess contributions, premature distributions, distributions
that do not conform to specified commencement and minimum distribution rules,
excess distributions and in other circumstances. Contract owners and
participants under the plan and annuitants and beneficiaries under the Contract
may be subject to the terms and conditions of the plan regardless of the terms
of the Contract.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity (IRA).
Individual Retirement Annuities are subject to limitations on the amount that
can be contributed and on the time when distributions may commence. Certain
distributions from other types of qualified plans may be "rolled over" on a
tax-deferred basis into an Individual Retirement Annuity. An IRA generally may
not provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid and the Contract's Cash Value. The Contract
provides a death benefit that in certain circumstances may exceed the greater of
the payments and the Contract Value. It is possible that the death benefit could
be viewed as violating the prohibition on investment in life insurance contracts
with the result that the Contract would not be viewed as satisfying the
requirements of an IRA.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after the
taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2, made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature distributions.
Subject to certain limitations, a traditional Individual Retirement Account or
Annuity may be converted or "rolled over" to a Roth Individual Retirement
Annuity. The taxable portion of a conversion or rollover distribution is
includible in gross income, but is exempted from the 10% penalty tax on
premature distributions.
SIMPLIFIED EMPLOYEE PENSION PLANS
Section 408(k) of the Code allows employers to establish simplified employee
pension plans for their employees using the employees' individual retirement
annuities if certain criteria are met. Under these plans the employer may,
within specified limits, make deductible contributions on behalf of the
employees to their individual retirement annuities. Employers intending to use
the Contract in connection with such plans should seek competent advice. In
particular, employers should consider that an IRA generally may not provide life
insurance, but it may provide a death benefit that equals the greater of the
premiums paid and the contract's cash value. The Contract provides a death
benefit that in certain circumstances may exceed the greater of the payments and
the Contract Value.
SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS)
Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer
employees to establish SIMPLE retirement plans for their employees. SIMPLE plans
may be structured as a SIMPLE retirement account using an employee's IRA to hold
the assets or as a Section 401(k) qualified cash or deferred arrangement. In
general, a SIMPLE plan consists of a salary deferral program for eligible
employees and matching or nonelective contributions made by employers. Employers
intending to use the Contract in conjunction with SIMPLE plans should seek
competent tax and legal advice.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code permits public school employees and employees of
certain types of tax-exempt organizations (specified in Section 501(c)(3) of the
Code) to have their employers purchase annuity contracts for them, and subject
to certain limitations, to exclude the purchase payments from the employees'
gross income. An annuity contract used for a Section 403(b) plan must provide
that distributions attributable to salary reduction contributions made after
12/31/88, and all earnings on salary reduction contributions, may be made only
on or after the date the employee attains age 59 1/2, separates from service,
dies, becomes disabled or on the account of hardship (earnings on salary
reduction contributions may not be distributed for hardship). These limitations
do not apply to withdrawals where Allstate Life of New York is directed to
transfer some or all of the Contract Value to another 403(b) plan.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to establish
various types of tax favored retirement plans for employees. The Self-Employed
Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R.
10" or "Keogh") permits self-employed individuals to establish tax favored
retirement plans for themselves and their employees. Such retirement plans may
permit the purchase of annuity contracts in order to provide benefits under the
plans.
STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION
DEFERRED COMPENSATION PLANS
Section 457 of the Code permits employees of state and local governments and
tax-exempt organizations to defer a portion of their compensation without paying
current taxes. The employees must be participants in an eligible deferred
compensation plan. To the extent the Contracts are used in connection with an
eligible plan, employees are considered general creditors of the employer and
the employer as owner of the contract has the sole right to the proceeds of the
contract. Generally, under the non-natural owner rules, such Contracts are not
treated as annuity contracts for federal income tax purposes. Under these plans,
contributions made for the benefit of the employees will not be includible in
the employees' gross income until distributed from the plan. However, under a
Section 457 plan all the compensation deferred under the plan must remain solely
the property of the employer, subject only to the claims of the employer's
general creditors, until such time as made available to the employee or a
beneficiary.
<PAGE>
EXPERTS
- ------------------------------------------------------------------------------
The financial statements of Allstate Life Insurance Company of New York as of
December 31, 1998 and 1997 and for each of the three years in the period ended
December 31, 1998 and the financial statements of Allstate Life of New York
Separate Account A as of December 31, 1998 and for each of the two years in the
period ended December 31, 1998 appearing in the Statement of Additional
Information (which is incorporated by reference in the prospectus of Allstate
Life of New York Separate Account A of Allstate Life Insurance Company of New
York) have been audited by Deloitte & Touche LLP, independent auditors as stated
in their reports appearing herein, and are included in reliance upon the reports
of such firm given upon their authority as experts in accounting and auditing.
<PAGE>
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------
The financial statements of the Variable Account and Allstate Life of New York
and the accompanying Reports of Independent Auditors appear on the pages that
follow. The financial statements of Allstate Life of New York included herein
should be considered only as bearing upon the ability of Allstate Life of New
York to meet its obligations under the Contracts.
<PAGE>
Financial Statements
Index
-----
Page
----
Independent Auditors' Report...............................................F-1
Financial Statements:
Statements of Financial Position,
December 31, 1998 and 1997...............................F-2
Statements of Operations and Comprehensive Income for the Years Ended
December 31, 1998, 1997 and 1996.........................F-3
Statements of Shareholder's Equity for the Years Ended
December 31, 1998, 1997 and 1996.........................F-4
Statements of Cash Flows for the Years Ended
December 31, 1998, 1997 and 1996.........................F-5
Notes to Financial Statements.....................................F-6
Schedule IV - Reinsurance for the Years Ended
December 31, 1998, 1997 and 1996.........................F-22
Schedule V - Valuation and Qualifying Accounts
December 31, 1998, 1997 and 1996.........................F-23
18
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF ALLSTATE LIFE INSURANCE COMPANY OF
NEW YORK:
We have audited the accompanying Statements of Financial Position of Allstate
Life Insurance Company of New York (the "Company", an affiliate of The Allstate
Corporation) as of December 31, 1998 and 1997, and the related Statements of
Operations and Comprehensive Income, Shareholder's Equity and Cash Flows for
each of the three years in the period ended December 31, 1998. Our audits also
included Schedule IV - Reinsurance and Schedule V Valuation and Qualifying
Accounts. These financial statements and financial statement schedules are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and financial statement schedules based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 1998 and
1997, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 1998 in conformity with generally
accepted accounting principles. Also, in our opinion, Schedule IV - Reinsurance,
and Schedule V - Valuation and Qualifying Accounts, when considered in relation
to the basic financial statements taken as a whole, present fairly, in all
material respects, the information set forth therein.
/s/ Deloitte & Touche LLP
Chicago, Illinois
February 19, 1999
F-1
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF FINANCIAL POSITION
December 31,
------------
($ in thousands) 1998 1997
---- ----
ASSETS
Investments
Fixed income securities, at fair value
(amortized cost $1,648,972 and $1,510,110) $1,966,067 $1,756,257
Mortgage loans 145,095 114,627
Short-term 76,127 9,513
Policy loans 29,620 27,600
---------- ----------
Total investments 2,216,909 1,907,997
Deferred acquisition costs 87,830 71,946
Accrued investment income 22,685 21,725
Reinsurance recoverables 2,210 1,726
Cash 3,117 393
Other assets 9,887 6,167
Separate Accounts 366,247 308,595
---------- ----------
TOTAL ASSETS $2,708,885 $2,318,549
========== ==========
LIABILITIES
Reserve for life-contingent contract benefits $1,208,104 $1,084,409
Contractholder funds 703,264 607,474
Current income taxes payable 14,029 1,419
Deferred income taxes 25,449 16,990
Other liabilities and accrued expenses 23,463 10,985
Payable to affiliates, net 38,835 5,267
Separate Accounts 366,247 308,595
---------- ----------
TOTAL LIABILITIES 2,379,391 2,035,139
---------- ----------
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 10)
SHAREHOLDER'S EQUITY
Common stock, $25 par value, 80,000 shares
authorized, issued and outstanding 2,000 2,000
Additional capital paid-in 45,787 45,787
Retained income 198,801 171,144
Accumulated other comprehensive income:
Unrealized net capital gains 82,906 64,479
---------- ----------
Total accumulated other comprehensive income 82,906 64,479
---------- ----------
TOTAL SHAREHOLDER'S EQUITY 329,494 283,410
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $2,708,885 $2,318,549
========== ==========
See notes to financial statements.
F-2
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
Year Ended December 31,
-----------------------
($ in thousands) 1998 1997 1996
---- ---- ----
<S> <C> <C> <C>
REVENUES
Premiums and contract charges (net of reinsurance
ceded of $3,204, $3,087 and $2,273) $ 119,052 $ 118,963 $ 117,106
Net investment income 134,413 124,887 112,862
Realized capital gains and losses 4,697 701 (1,581)
--------- --------- ---------
258,162 244,551 228,387
--------- --------- ---------
COSTS AND EXPENSES
Contract benefits (net of reinsurance recoveries
of $997, $1,985 and $2,827) 183,839 179,872 172,772
Amortization of deferred acquisition costs 7,029 5,023 6,512
Operating costs and expenses 24,703 23,644 16,874
--------- --------- ---------
215,571 208,539 196,158
--------- --------- ---------
INCOME FROM OPERATIONS BEFORE INCOME TAX EXPENSE 42,591 36,012 32,229
Income tax expense 14,934 13,296 11,668
--------- --------- ---------
NET INCOME 27,657 22,716 20,561
--------- --------- ---------
OTHER COMPREHENSIVE INCOME
Change in unrealized net capital gains and losses 18,427 27,627 (37,561)
--------- --------- ---------
COMPREHENSIVE INCOME $ 46,084 $ 50,343 $ (17,000)
========= ========= =========
<FN>
See notes to financial statements.
</FN>
</TABLE>
F-3
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF SHAREHOLDER'S EQUITY
December 31,
------------
($ in thousands) 1998 1997 1996
---- ---- ----
<S> <C> <C> <C>
COMMON STOCK $ 2,000 $ 2,000 $ 2,000
--------- --------- ---------
ADDITIONAL CAPITAL PAID-IN 45,787 45,787 45,787
--------- --------- ---------
RETAINED INCOME
Balance, beginning of year 171,144 148,428 127,867
Net income 27,657 22,716 20,561
--------- --------- ---------
Balance, end of year 198,801 171,144 148,428
--------- --------- ---------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of year 64,479 36,852 74,413
Change in unrealized net capital gains and losses 18,427 27,627 (37,561)
--------- --------- ---------
Balance, end of year 82,906 64,479 36,852
--------- --------- ---------
Total shareholder's equity $ 329,494 $ 283,410 $ 233,067
========= ========= =========
<FN>
See notes to financial statements.
</FN>
</TABLE>
F-4
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF CASH FLOWS
Year Ended December 31,
-----------------------
($ in thousands) 1998 1997 1996
---- ---- ----
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 27,657 $ 22,716 $ 20,561
Adjustments to reconcile net income to net
cash provided by operating activities
Amortization and other non-cash items (34,890) (31,112) (26,172)
Realized capital gains and losses (4,697) (701) 1,581
Interest credited to contractholder funds 41,200 31,667 25,817
Changes in:
Life-contingent contract benefits
and contractholder funds 53,343 68,114 75,217
Deferred acquisition costs (16,693) (10,781) (6,859)
Accrued investment income (960) (1,404) (1,493)
Income taxes payable 13,865 (158) 1,986
Other operating assets and liabilities (15,014) 9,949 (5,963)
--------- --------- ---------
Net cash provided by operating activities 63,811 88,290 84,675
--------- --------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of fixed income securities 65,281 15,723 28,454
Investment collections
Fixed income securities 159,648 120,061 72,751
Mortgage loans 5,855 5,365 12,508
Investment purchases
Fixed income securities (292,444) (236,984) (236,252)
Mortgage loans (24,252) (35,200) (10,325)
Change in short-term investments, net (55,846) 16,342 (18,598)
Change in policy loans, net (2,020) (2,241) (2,574)
--------- --------- ---------
Net cash used in investing activities (143,778) (116,934) (154,036)
--------- --------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Contractholder fund deposits 137,473 79,384 115,420
Contractholder fund withdrawals (54,782) (51,374) (46,504)
--------- --------- ---------
Net cash provided by financing activities 82,691 28,010 68,916
--------- --------- ---------
NET INCREASE (DECREASE) IN CASH 2,724 (634) (445)
CASH AT BEGINNING OF YEAR 393 1,027 1,472
--------- --------- ---------
CASH AT END OF YEAR $ 3,117 $ 393 $ 1,027
========= ========= =========
<FN>
See notes to financial statements.
</FN>
</TABLE>
F-5
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
1. GENERAL
BASIS OF PRESENTATION
The accompanying financial statements include the accounts of Allstate Life
Insurance Company of New York (the "Company"), a wholly owned subsidiary of
Allstate Life Insurance Company ("ALIC"), which is wholly owned by Allstate
Insurance Company ("AIC"), a wholly owned subsidiary of The Allstate Corporation
(the "Corporation"). These financial statements have been prepared in conformity
with generally accepted accounting principles.
To conform with the 1998 presentation, certain amounts in the prior years'
financial statements and notes have been reclassified.
NATURE OF OPERATIONS
The Company markets a broad line of life insurance and savings products in the
State of New York. Life insurance includes traditional products such as whole
life and term life insurance, as well as universal life and other
interest-sensitive life products. Savings products include deferred annuities,
such as variable annuities and fixed rate single and flexible premium annuities,
and immediate annuities such as structured settlement annuities. The Company
distributes its products using a combination of Allstate agents, which include
life specialists as well as banks, independent insurance agents, brokers and
direct marketing.
Structured settlement annuity contracts issued by the Company are long-term in
nature and involve fixed guarantees relating to the amount and timing of benefit
payments. Annuity contracts and life insurance policies issued by the Company
are subject to discretionary withdrawal or surrender by customers, subject to
applicable surrender charges. In low interest rate environments, funds from
maturing investments, particularly those supporting long-term structured
settlement annuity obligations, may be reinvested at substantially lower
interest rates than those which prevailed when the funds were previously
invested.
The Company monitors economic and regulatory developments which have the
potential to impact its business. There continues to be proposed federal and
state regulation and legislation that, if passed, would allow banks greater
participation in the securities and insurance businesses. Such events would
present an increased level of competition for sales of the Company's products.
Furthermore, the market for deferred annuities and interest-sensitive life
insurance is enhanced by the tax incentives available under current law. Any
legislative changes which lessen these incentives are likely to negatively
impact the demand for these products.
Additionally, traditional demutualizations of mutual insurance companies and
enacted and pending state legislation to permit mutual insurance companies to
convert to a hybrid structure known as a mutual holding company could have a
number of significant effects on the Company by (1) increasing industry
competition through consolidation caused by mergers and acquisitions related to
the new corporate form of business; and (2) increasing competition in capital
markets.
Although the Company currently benefits from agreements with financial services
entities who market and distribute its products, change in control of these
non-affliliated entities with which the Company has alliances could have a
detrimental effect on the Company's sales.
F-6
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
Fixed income securities include bonds and mortgage-backed and asset-backed
securities. All fixed income securities are carried at fair value and may be
sold prior to their contractual maturity ("available for sale"). The difference
between amortized cost and fair value, net of deferred income taxes, certain
deferred acquisition costs, and reserves for life and annuity policy benefits,
is reflected as a component of shareholder's equity. Provisions are recognized
for declines in the value of fixed income securities that are other than
temporary. Such writedowns are included in realized capital gains and losses.
Mortgage loans are carried at outstanding principal balance, net of unamortized
premium or discount and valuation allowances. Valuation allowances are
established for impaired loans when it is probable that contractual principal
and interest will not be collected. Valuation allowances for impaired loans
reduce the carrying value to the fair value of the collateral or the present
value of the loan's expected future repayment cash flows discounted at the
loan's original effective interest rate. Valuation allowances on loans not
considered to be impaired are established based on consideration of the
underlying collateral, borrower financial strength, current and expected market
conditions, and other factors.
Short-term investments are carried at cost or amortized cost which approximates
fair value, and includes collateral received in connection with securities
lending activities. Policy loans are carried at the unpaid principal balances.
Investment income consists primarily of interest and dividends on short-term
investments. Interest is recognized on an accrual basis and dividends are
recorded at the ex-dividend date. Interest income on mortgage-backed and
asset-backed securities is determined on the effective yield method, based on
estimated principal repayments. Accrual of income is suspended for fixed income
securities and mortgage loans that are in default or when the receipt of
interest payments is in doubt. Realized capital gains and losses are determined
on a specific identification basis.
DERIVATIVE FINANCIAL INSTRUMENTS
The Company utilizes futures contracts which are derivative financial
instruments. When futures contracts meet specific criteria they may be
designated as accounting hedges and accounted for on either a fair value or
deferral basis, depending upon the nature of the hedge strategy and the method
used to account for the hedged item. Derivatives that are not designated as
accounting hedges are accounted for on a fair value basis.
If, subsequent to entering into a hedge transaction, the futures contract
becomes ineffective (including if the the occurrence of a hedged anticipatory
transaction is no longer probable), the Company terminates the derivative
position. Gains and losses on these terminations are reported in realized
capital gains and losses in the period they occur. The Company may also
terminate derivatives as a result of other events or circumstances. Gains and
losses on these terminations are either deferred and amortized over the
remaining life of either the hedge or the hedged item, whichever is shorter, or
are reported in shareholder's equity, consistent with the accounting for the
hedged item. Futures contracts must reduce the primary market risk exposure on
an enterprise or transaction basis in conjunction with the hedge strategy; be
designated as a hedge at the inception of the transaction; and be highly
correlated with the fair value of, or interest income or expense associated
with, the hedged item at inception and throughout the hedge period.
DEFERRAL ACCOUNTING Under deferral accounting, gains and losses on futures
contracts are deferred on the statement of financial position and recognized in
earnings in conjunction with earnings on the hedged item. The Company accounts
for interest rate futures contracts as hedges using deferral accounting for
anticipatory investment purchases and sales when the criteria for futures
(discussed above) are met. In addition, anticipated transactions must be
probable of occurrence and their significant terms and characteristics
identified.
F-7
<PAGE>
Changes in fair values of these types of derivatives are initially deferred as
other liabilities and accrued expenses. Once the anticipated transaction occurs,
the deferred gains or losses are considered part of the cost basis of the asset
and reported net of tax in shareholder's equity or recognized as a gain or loss
from disposition of the asset, as appropriate. The Company reports initial
margin deposits on futures in short-term investments. Fees and commissions paid
on these derivatives are also deferred as an adjustment to the carrying value of
the hedged item.
RECOGNITION OF PREMIUM REVENUES AND CONTRACT CHARGES
Premiums for traditional life insurance and certain life-contingent annuities
are recognized as revenue when due. Accident and disability premiums are earned
on a pro rata basis over the policy period. Revenues on universal life-type
insurance policies are comprised of contract charges and fees, and are
recognized when assessed against the policyholder account balance. Revenues on
investment contracts include contract charges and fees for contract
administration and surrenders. These revenues are recognized when levied against
the contract balance. Gross premium in excess of the net premium on limited
payment contracts are deferred and recognized over the contract period.
REINSURANCE
The Company has reinsurance agreements whereby certain premiums and contract
benefits are ceded and reflected net of such reinsurance in the statements of
operations and comprehensive income. Reinsurance recoverable and the related
reserves for life-contingent contract benefits and contractholder funds are
reported separately in the statements of financial position. The Company
continues to have primary liability as the direct insurer for risks reinsured.
DEFERRED ACQUISITION COSTS
Certain costs of acquiring life and annuity business, principally agents'
remuneration, premium taxes, certain underwriting costs and direct mail
solicitation expenses are deferred and amortized to income. For traditional life
insurance, limited payment contracts and accident and disability insurance,
these costs are amortized in proportion to the estimated revenues on such
business. For universal life-type policies and investment contracts, the costs
are amortized in relation to the present value of estimated gross profits on
such business. Changes in the amount or timing of estimated gross profits will
result in adjustments in the cumulative amortization of these costs. To the
extent that unrealized gains or losses on fixed income securities carried at
fair value would result in an adjustment of deferred acquisition costs had those
gains or losses actually been realized, the related unamortized deferred
acquisition costs are recorded as a reduction of the unrealized gains or losses
included in shareholder's equity.
INCOME TAXES
The income tax provision is calculated under the liability method and presented
net of reinsurance. Deferred tax assets and liabilities are recorded based on
the difference between the financial statement and tax bases of assets and
liabilities at the enacted tax rates. The principal assets and liabilities
giving rise to such differences are insurance reserves and deferred acquisition
costs. Deferred income taxes also arise from unrealized capital gains and losses
on fixed income securities carried at fair value.
SEPARATE ACCOUNTS
The Company issues flexible premium deferred variable annuities, the assets and
liabilities of which are legally segregated and reflected in the accompanying
statements of financial position as assets and liabilities of the Separate
Accounts. The Company's Separate Accounts consist of: Allstate Life of New York
Variable Annuity Account, Allstate Life of New York Variable Annuity Account II
and Allstate Life of New York Separate Account A. Each of the Separate Accounts
are unit investment trusts registered with the Securities and Exchange
Commission.
F-8
<PAGE>
Assets of the Separate Accounts are carried at fair value. Investment income and
realized capital gains and losses of the Separate Accounts accrue directly to
the contractholders and, therefore, are not included in the Company's statements
of operations and comprehensive income. Revenues to the Company from the
Separate Accounts consist of contract maintenance fees, administration fees and
mortality and expense risk charges.
RESERVES FOR LIFE-CONTINGENT CONTRACT BENEFITS
The reserve for life-contingent contract benefits, which relates to traditional
life insurance, group retirement annuities and structured settlement annuities
with life contingencies, disability insurance and accident insurance, is
computed on the basis of assumptions as to future investment yields, mortality,
morbidity, terminations and expenses. These assumptions, which for traditional
life insurance are applied using the net level premium method, include
provisions for adverse deviation and generally vary by such characteristics as
type of coverage, year of issue and policy duration. Reserve interest rates
ranged from 4.0% to 11.0% during 1998. To the extent that unrealized gains on
fixed income securities would result in a premium deficiency had those gains
actually been realized, the related increase in reserves is recorded as a
reduction of the unrealized gains included in shareholder's equity.
CONTRACTHOLDER FUNDS
Contractholder funds arise from the issuance of individual or group policies and
contracts that include an investment component, including most fixed annuities
and universal life policies. Payments received are recorded as interest-bearing
liabilities. Contractholder funds are equal to deposits received and interest
credited to the benefit of the contractholder less withdrawals, mortality
charges and administrative expenses. During 1998, credited interest rates on
contractholder funds ranged from 3.46% to 11.00% for those contracts with fixed
interest rates and from 3.50% to 7.75% for those with flexible rates.
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
Commitments to extend mortgage loans have only off-balance-sheet risk because
their contractual amounts are not recorded in the Company's statements of
financial position.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
NEW ACCOUNTING STANDARDS
In 1998, the Company adopted Statement of Financial Accounting Standards
("SFAS") No. 125, "Accounting for Transfers and Servicing of Financial Assets
and Extinguishment of Liabilities" under the guidance of SFAS No. 127 "Deferral
of the Effective Date of Certain Provisions of FASB Statement No. 125". As a
result, the Company has recorded an asset and corresponding liability
representing the collateral received in connection with the Company's securities
lending program.
In 1998, the Company adopted SFAS No. 130, "Reporting Comprehensive Income."
Comprehensive income is a measurement of certain changes in shareholder's equity
that result from transactions and other economic events other than transactions
with shareholders. For the Company, these consist of changes in unrealized gains
and losses on the investment portfolio (See Note 9).
In 1998, the Company adopted SFAS No. 131, "Disclosures about Segments of an
Enterprise and Related Information." SFAS 131 redefines how segments are
determined and requires additional segment disclosures for both annual and
interim financial reporting. The Company has identified itself as a single
operating segment.
F-9
<PAGE>
PENDING ACCOUNTING STANDARDS
In December 1997, the Accounting Standards Executive Committee of the American
Institute of Certified Public Accountants issued Statement of Position ("SOP")
97-3, "Accounting by Insurance and Other Enterprises for Insurance-related
Assessments." The SOP is required to be adopted in 1999. The SOP provides
guidance concerning when to recognize a liability for insurance-related
assessments and how those liabilities should be measured. Specifically,
insurance-related assessments should be recognized as liabilities when all of
the following criteria have been met: 1) an assessment has been imposed or it is
probable that an assessment will be imposed, 2) the event obligating an entity
to pay an assessment has occurred and 3) the amount of the assessment can be
reasonably estimated. The Company is currently evaluating the effects of this
SOP on its accounting for insurance-related assessments. Certain information
required for compliance is not currently available and therefore the Company is
studying alternatives for estimating the accrual. In addition, industry groups
are working to improve the information available. Adoption of this standard is
not expected to be material to the results of operations or financial position
of the Company.
In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities." SFAS No. 133
replaces existing pronouncements and practices with a single, integrated
accounting framework for derivatives and hedging activities. The requirements
are effective for fiscal years beginning after June 15, 1999. Earlier
application is encouraged but is only permitted as of the beginning of any
fiscal quarter after issuance. This statement requires that all derivatives be
recognized on the balance sheet at fair value. Derivatives that are not hedges
must be adjusted to fair value through income. If the derivative is a hedge,
depending on the nature of the hedge, changes in the fair value of derivatives
will either be offset against the change in fair value of the hedged assets,
liabilities, or firm commitments through earnings or recognized in other
comprehensive income until the hedged item is recognized in earnings.
Additionally, the change in fair value of a derivative which is not effective as
a hedge will be immediately recognized in earnings. The Company expects to adopt
SFAS No. 133 as of January 1, 2000. Based on existing interpretations of the
requirements of SFAS No. 133, the impact of adoption is not expected to be
material to the results of operations or financial position of the Company.
3. RELATED PARTY TRANSACTIONS
REINSURANCE
The Company has reinsurance agreements with ALIC in order to limit aggregate and
single exposure on large risks. A portion of the Company's premiums and policy
benefits are ceded to ALIC and reflected net of such reinsurance in the
statements of operations and comprehensive income. Reinsurance recoverable and
the related reserve for life-contingent contract benefits and contractholder
funds are reported separately in the statements of financial position. The
Company continues to have primary liability as the direct insurer for risks
reinsured.
F-10
<PAGE>
The following amounts were ceded to the ALIC under reinsurance agreements.
YEAR ENDED DECEMBER 31,
-----------------------
($ in thousands) 1998 1997 1996
---- ---- ----
Premiums $ 2,519 $ 2,171 $ 1,383
Policy benefits 315 327 1,662
Included in the reinsurance recoverable at December 31, 1998 and 1997 are
amounts due from the ALIC of $532 and $342, respectively.
STRUCTURED SETTLEMENT ANNUITIES
AIC, through an affiliate, purchased $12,747, $12,766 and $15,610 of structured
settlement annuities from the Company in 1998, 1997 and 1996, respectively. Of
these amounts, $5,152, $3,468 and $8,517 relate to structured settlement
annuities with life contingencies and are included in premium income in 1998,
1997 and 1996, respectively. Additionally, the reserve for life-contingent
contract benefits was increased by approximately 94% of such premium received in
each of these years.
BUSINESS OPERATIONS
The Company utilizes services performed by AIC and ALIC and business facilities
owned or leased, and operated by AIC in conducting its business activities. The
Company reimburses AIC and ALIC for the operating expenses incurred on behalf of
the Company. The cost to the Company is determined by various allocation methods
and is primarily related to the level of services provided. Operating expenses,
including compensation and retirement and other benefit programs, allocated to
the Company were $32,326, $27,632 and $23,134 in 1998, 1997 and 1996,
respectively. A portion of these expenses relate to the acquisition of life and
annuity business which are deferred and amortized over the contract period.
4. INVESTMENTS
FAIR VALUES
The amortized cost, gross unrealized gains and losses, and fair value for fixed
income securities are as follows:
<TABLE>
<CAPTION>
AMORTIZED GROSS UNREALIZED FAIR
COST GAINS LOSSES VALUE
---- ----- ------ -----
<S> <C> <C> <C> <C>
AT DECEMBER 31, 1998
U.S. government and agencies $ 443,930 $ 179,455 $ (1) $ 623,384
Municipal 31,617 2,922 (19) 34,520
Corporate 848,289 121,202 (899) 968,592
Mortgage-backed securities 291,520 14,294 (700) 305,114
Asset-backed securities 33,616 869 (28) 34,457
---------- ---------- ---------- ----------
Total fixed income securities $1,648,972 $ 318,742 $ (1,647) $1,966,067
========== ========== ========== ==========
AT DECEMBER 31, 1997
U.S. government and agencies $ 416,203 $ 126,824 $ (212) $ 542,815
Municipal 35,382 2,449 (22) 37,809
Corporate 803,935 103,700 (479) 907,156
Mortgage-backed securities 215,465 13,442 (166) 228,741
Asset-backed securities 39,125 642 (31) 39,736
---------- ---------- ---------- ----------
Total fixed income securities $1,510,110 $ 247,057 $ (910) $1,756,257
========== ========== ========== ==========
</TABLE>
F-11
<PAGE>
SCHEDULED MATURITIES
The scheduled maturities for fixed income securities are as follows at December
31, 1998:
AMORTIZED FAIR
COST VALUE
---- -----
Due in one year or less $ 14,903 $ 15,087
Due after one year through five years 79,333 84,372
Due after five years through ten years 227,770 250,208
Due after ten years 1,001,830 1,276,829
---------- ----------
1,323,836 1,626,496
Mortgage- and asset-backed securities 325,136 339,571
---------- ----------
Total $1,648,972 $1,966,067
========== ==========
Actual maturities may differ from those scheduled as a result of prepayments by
the issuers.
NET INVESTMENT INCOME
YEAR ENDED DECEMBER, 31 1998 1997 1996
---- ---- ----
Fixed income securities $124,100 $116,763 $104,583
Mortgage loans 10,309 7,896 7,113
Other 2,940 2,200 2,942
-------- -------- --------
Investment income, before expense 137,349 126,859 114,638
Investment expense 2,936 1,972 1,776
-------- -------- --------
Net investment income $134,413 $124,887 $112,862
======== ======== ========
REALIZED CAPITAL GAINS AND LOSSES
YEAR ENDED DECEMBER 31, 1998 1997 1996
---- ---- ----
Fixed income securities $ 4,755 $ 955 $(1,522)
Mortgage loans (65) (221) (59)
Other 7 (33) --
------- ------- -------
Realized capital gains and losses 4,697 701 (1,581)
Income tax 1,644 245 (553)
------- ------- -------
Realized capital gains and losses, after tax $ 3,053 $ 456 $(1,028)
======= ======= =======
Excluding calls and prepayments, gross gains of $2,905, $471 and $480 and gross
losses of $164, $105 and $2,308 were realized on sales of fixed income
securities during 1998, 1997 and 1996, respectively.
F-12
<PAGE>
UNREALIZED NET CAPITAL GAINS
Unrealized net capital gains on fixed income securities included in
shareholder's equity at December 31, 1998 are as follows:
<TABLE>
<CAPTION>
COST/ GROSS UNREALIZED UNREALIZED
AMORTIZED COST FAIR VALUE GAINS LOSSES NET GAINS
-------------- ---------- ----- ------ ---------
<S> <C> <C> <C> <C> <C>
Fixed income securities $ 1,648,972 $ 1,966,067 $ 318,742 $ (1,647) $ 317,095
=========== =========== =========== ===========
Reserve for life-contingent
contract benefits (187,706)
Deferred income taxes (44,642)
Deferred acquisition costs
and other (1,841)
-----------
Unrealized net capital gains $ 82,906
===========
</TABLE>
<TABLE>
<CAPTION>
CHANGE IN UNREALIZED NET CAPITAL GAINS
YEAR ENDED DECEMBER 31, 1998 1997 1996
---- ---- ----
<S> <C> <C> <C>
Fixed income securities $ 70,948 $ 123,519 $ (82,847)
Reserves for life contingent-contract benefits (42,251) (80,155) 24,300
Deferred income taxes (9,922) (14,876) 20,224
Deferred acquisition costs and other (348) (861) 762
--------- --------- ---------
Increase (decrease) in unrealized net
capital gains $ 18,427 $ 27,627 $ (37,561)
========= ========= =========
</TABLE>
INVESTMENT LOSS PROVISIONS AND VALUATION ALLOWANCES
Pretax provisions for investment losses, principally relating to other than
temporary declines in value of fixed income securities and valuation allowances
on mortgage loans were $114, $261 and $208 in 1998, 1997 and 1996, respectively.
MORTGAGE LOAN IMPAIRMENT
A mortgage loan is impaired when it is probable that the Company will be unable
to collect all amounts due according to the contractual terms of the loan
agreement.
The Company had no impaired loans at December 31, 1998, 1997 and 1996.
Interest income is recognized on a cash basis for impaired loans carried at the
fair value of the collateral, beginning at the time of impairment. For other
impaired loans, interest is accrued based on the net carrying value. There were
no impaired loans during 1998 and 1997. In 1996, the Company recognized interest
income of $281 on impaired loans, which was received in cash during the year.
The average recorded investment in impaired loans was $5,154 during 1996.
Valuation allowances for mortgage loans at December 31, 1998, 1997 and 1996 were
$600, $486 and $225, respectively. There were no direct write-downs of mortgage
loan valuation allowances for the years ended December 31, 1998 and 1997. For
the year ended December 31, 1996, direct write-downs of mortgage loan valuation
allowances were $1,431. Net (reductions) additions to the mortgage loan
valuation allowances were $114, $261 and $(296) for the years ended December 31,
1998, 1997 and 1996, respectively.
F-13
<PAGE>
INVESTMENT CONCENTRATION FOR MUNICIPAL BOND AND COMMERCIAL MORTGAGE PORTFOLIOS
AND OTHER INVESTMENT INFORMATION
The Company maintains a diversified portfolio of municipal bonds. The largest
concentrations in the portfolio are presented below. Except for the following,
holdings in no other state exceeded 5% of the portfolio at December 31, 1998 and
1997:
(% of municipal bond portfolio carrying value) 1998 1997
---- ----
Ohio 30.2% 28.4%
Illinois 21.1 19.8
California 17.4 22.7
Maryland 8.2 8.0
Minnesota 5.9 5.5
New York 5.7 5.4
Maine 5.3 5.6
The Company's mortgage loans are collateralized by a variety of commercial real
estate property types located throughout the United States. Substantially all of
the commercial mortgage loans are non-recourse to the borrower. The states with
the largest portion of the commercial mortgage loan portfolio are listed below.
Except for the following, holdings in no other state exceeded 5% of the
portfolio at December 31, 1998 and 1997:
(% of commercial mortgage portfolio carrying value) 1998 1997
---- ----
California 41.9% 47.7%
New York 26.3 30.5
Illinois 15.8 15.3
New Jersey 6.9 -
Pennsylvania 6.2 3.3
The types of properties collateralizing the commercial mortgage loans at
December 31, are as follows:
(% of commercial mortgage portfolio carrying value) 1998 1997
---- ----
Retail 39.5% 38.8%
Warehouse 19.2 25.4
Apartment complex 18.5 14.9
Office buildings 11.7 15.3
Industrial 5.5 4.9
Other 5.6 .7
------ ------
100.0% 100.0%
===== =====
F-14
<PAGE>
The contractual maturities of the commercial mortgage loan portfolio as of
December 31, 1998, for loans that were not in foreclosure are as follows:
NUMBER OF LOANS CARRYING VALUE PERCENT
--------------- -------------- -------
1999 1 $ 2,832 2.0%
2000 4 7,762 5.3
2001 5 7,066 4.9
2002 2 6,154 4.2
Thereafter 31 121,281 83.6
-------- -------- --------
Total 43 $145,095 100.0%
======== ======== ========
In 1998, there were no commercial mortgage loans which were contractually due.
SECURITIES ON DEPOSIT
At December 31, 1998, fixed income securities with a carrying value of $2,109
were on deposit with regulatory authorities as required by law.
5. FINANCIAL INSTRUMENTS
In the normal course of business, the Company invests in various financial
assets, incurs various financial liabilities and enters into agreements
involving derivative financial instruments and other off-balance-sheet financial
instruments. The fair value estimates of financial instruments presented below
are not necessarily indicative of the amounts the Company might pay or receive
in actual market transactions. Potential taxes and other transaction costs have
not been considered in estimating fair value. The disclosures that follow do not
reflect the fair value of the Company as a whole since a number of the Company's
significant assets (including deferred acquisition costs and reinsurance
recoverables) and liabilities (including traditional life and universal
life-type insurance reserves and deferred income taxes) are not considered
financial instruments and are not carried at fair value. Other assets and
liabilities considered financial instruments such as accrued investment income
and cash are generally of a short-term nature. Their carrying values are assumed
to approximate fair value.
FINANCIAL ASSETS
The carrying value and fair value of financial assets at December 31, are as
follows:
1998 1997
---- ----
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- -----
Fixed income securities $1,966,067 $1,966,067 $1,756,257 $1,756,257
Mortgage loans 145,095 154,872 114,627 120,849
Short-term investments 76,127 76,127 9,513 9,513
Policy loans 29,620 29,620 27,600 27,600
Separate Accounts 366,247 366,247 308,595 308,595
Carrying value and fair value include the effects of derivative financial
instruments where applicable.
F-15
<PAGE>
Fair values for fixed income securities are based on quoted market prices where
available. Non-quoted securities are valued based on discounted cash flows using
current interest rates for similar securities. Mortgage loans are valued based
on discounted contractual cash flows. Discount rates are selected using current
rates at which similar loans would be made to borrowers with similar
characteristics, using similar properties as collateral. Loans that exceed 100%
loan-to-value are valued at the estimated fair value of the underlying
collateral. Short-term investments are highly liquid investments with maturities
of less than one year whose carrying value approximates fair value.
The carrying value of policy loans approximates its fair value. Separate
Accounts assets are carried in the statements of financial position at fair
value based on quoted market prices.
FINANCIAL LIABILITIES
The carrying value and fair value of financial liabilities at December 31, are
as follows:
1998 1997
---- ----
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- -----
Contractholder funds on
investment contracts $512,239 $518,448 $437,449 $466,136
Separate Accounts 366,247 366,247 308,595 308,595
The fair value of contractholder funds on investment contracts is based on the
terms of the underlying contracts. Reserves on investment contracts with no
stated maturities (single premium and flexible premium deferred annuities) are
valued at the account balance less surrender charges. The fair value of
immediate annuities and annuities without life contingencies with fixed terms is
estimated using discounted cash flow calculations based on interest rates
currently offered for contracts with similar terms and durations. Separate
Accounts liabilities are carried at the fair value of the underlying assets.
DERIVATIVE FINANCIAL INSTRUMENTS
The only derivative financial instruments used by the Company are interest rate
futures contracts. The Company primarily uses this derivative financial
instrument to reduce its exposure to market risk, specifically interest rate
risk, in conjunction with asset/liability management. The Company does not hold
or issue these instruments for trading purposes.
The following table summarizes the contract amount, credit exposure, fair value
and carrying value of the Company's derivative financial instruments:
CARRYING
VALUE
CONTRACT CREDIT FAIR ASSETS/
AMOUNT EXPOSURE VALUE (LIABILITIES)
------ -------- ----- -------------
AT DECEMBER 31, 1998
- --------------------
Financial futures contracts $15,000 $ -- $ (15) $ (223)
AT DECEMBER 31, 1997
- --------------------
Financial futures contracts $29,800 $ -- $ (153) $ (810)
Carrying value is representative of deferred gains and losses.
F-16
<PAGE>
The contract amounts are used to calculate the exchange of contractual payments
under the agreements and are not representative of the potential for gain or
loss on these agreements.
Credit exposure represents the Company's potential loss if all of the
counterparties failed to perform under the contractual terms of the contracts
and all collateral, if any, became worthless. This exposure is measured by the
fair value of contracts with a positive fair value at the reporting date. The
Company manages its exposure to credit risk primarily by establishing risk
control limits. To date, the Company has not incurred any losses on derivative
financial instruments due to counterparty nonperformance.
Fair value is the estimated amount that the Company would receive (pay) to
terminate or assign the contracts at the reporting date, thereby taking into
account the current unrealized gains or losses of open contracts. Dealer and
exchange quotes are used to value the Company's derivatives.
Financial futures are commitments to either purchase or sell designated
financial instruments at a future date for a specified price or yield. They may
be settled in cash or through delivery. As part of its asset/liability
management, the Company generally utilizes futures contracts to manage its
market risk related to anticipatory investment purchases and sales, as well as
other risk management purposes. Futures used as hedges of anticipatory
transactions pertain to identified transactions which are probable to occur and
are generally completed within 90 days. Futures contracts have limited
off-balance-sheet credit risk as they are executed on organized exchanges and
require security deposits, as well as the daily cash settlement of margins.
Market risk is the risk that the Company will incur losses due to adverse
changes in market rates and prices. Market risk exists for all of the derivative
financial instruments that the Company currently holds, as these instruments may
become less valuable due to adverse changes in market conditions. The Company
mitigates this risk through established risk control limits set by senior
management. In addition, the change in the value of the Company's derivative
financial instruments designated as hedges are generally offset by the change in
the value of the related assets and liabilities.
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
Commitments to extend mortgage loans are agreements to lend to a borrower
provided there is no violation of any condition established in the contract. The
Company enters these agreements to commit to future loan fundings at a
predetermined interest rate. Commitments generally have fixed expiration dates
or other termination clauses. Commitments to extend mortgage loans, which are
secured by the underlying properties, are valued based on estimates of fees
charged by other institutions to make similar commitments to similar borrowers.
The Company had no mortgage loan commitments at December 31, 1998. At December
31, 1997 the Company had $18,000 in mortgage loan commitments which had a fair
value of $180.
F-17
<PAGE>
6. INCOME TAXES
The Company joins the Corporation and its other eligible domestic subsidiaries
(the "Allstate Group") in the filing of a consolidated federal income tax return
and is party to a federal income tax allocation agreement (the "Allstate Tax
Sharing Agreement"). Under the Allstate Tax Sharing Agreement, the Company pays
to or receives from the Corporation the amount, if any, by which the Allstate
Group's federal income tax liability is affected by virtue of inclusion of the
Company in the consolidated federal income tax return. Effectively, this results
in the Company's annual income tax provision being computed, with adjustments,
as if the Company filed a separate return.
Prior to Sears, Roebuck and Co.'s ("Sears") distribution ("Sears distribution")
on June 30, 1995 of its 80.3% ownership in the Corporation to Sears
shareholders, the Allstate Group joined with Sears and its domestic business
units (the "Sears Group") in the filing of a consolidated federal income tax
return (the "Sears Tax Group") and were parties to a federal income tax
allocation agreement (the "Tax Sharing Agreement"). Under the Tax Sharing
Agreement, the Company, through the Corporation, paid to or received from the
Sears Group the amount, if any, by which the Sears Tax Group's federal income
tax liability was affected by virtue of inclusion of the Company in the
consolidated federal income tax return.
As a result of the Sears distribution, the Allstate Group was no longer included
in the Sears Tax Group, and the Tax Sharing Agreement was terminated.
Accordingly, the Allstate Group and Sears Group entered into a new tax sharing
agreement, which adopts many of the principles of the Tax Sharing Agreement and
governs their respective rights and obligations with respect to federal income
taxes for all periods prior to the Sears distribution, including the treatment
of audits of tax returns for such periods.
The Internal Revenue Service ("IRS") has completed its review of the Allstate
Group's federal income tax returns through the 1993 tax year. Any adjustments
that may result from IRS examinations of tax returns are not expected to have a
material impact on the financial position, liquidity or results of operations of
the Company.
The components of the deferred income tax assets and liabilities at December 31,
are as follows:
1998 1997
---- ----
DEFERRED ASSETS
Life and annuity reserves $ 41,073 $ 34,084
Difference in tax bases of investments -- 742
Discontinued operations 364 364
Other postretirement benefits 328 352
Other assets 2,023 255
-------- --------
Total deferred assets 43,788 35,797
-------- --------
DEFERRED LIABILITIES
Unrealized net capital gains (44,642) (34,720)
Deferred acquisition costs (20,573) (15,821)
Difference in tax bases of investments (1,784) --
Prepaid commission expense (790) (792)
Other liabilities (1,448) (1,454)
-------- --------
Total deferred liabilities (69,237) (52,787)
-------- --------
Net deferred liability $(25,449) $(16,990)
======== ========
F-18
<PAGE>
Although realization is not assured, management believes it is more likely than
not that the deferred tax assets will be realized based on the assumptions that
certain levels of income will be achieved.
The components of income tax expense for the year ended December 31, are as
follows:
1998 1997 1996
-------- -------- --------
Current $ 13,679 $ 14,874 $ 11,411
Deferred 1,255 (1,578) 257
-------- -------- --------
Total income tax expense $ 14,934 $ 13,296 $ 11,668
======== ======== ========
The Company paid income taxes of $3,788, $13,350 and $11,968 in 1998, 1997 and
1996, respectively. The Company had a current income tax liability of $14,029
and $1,419 at December 31, 1998 and 1997, respectively.
A reconciliation of the statutory federal income tax rate to the effective
income tax rate on income from operations for the year ended December 31, is as
follows:
1998 1997 1996
------ ------ ------
Statutory federal income tax rate 35.0% 35.0% 35.0%
State income tax expense 1.6 2.2 2.4
Other (1.5) (.3) (1.2)
------ ------ ------
Effective income tax rate 35.1% 36.9% 36.2%
====== ====== ======
Prior to January 1, 1984, the Company was entitled to exclude certain amounts
from taxable income and accumulate such amounts in a "policyholder surplus"
account. The balance in this account at December 31, 1998, approximately $389,
will result in federal income taxes payable of $136 if distributed by the
Company. No provision for taxes has been made as the Company has no plan to
distribute amounts from this account. No further additions to the account have
been permitted since the Tax Reform Act of 1984.
7. STATUTORY FINANCIAL INFORMATION
PERMITTED STATUTORY ACCOUNTING PRACTICES
The Company prepares its statutory financial statements in accordance with
accounting principles and practices prescribed or permitted by the New York
Department of Insurance. Prescribed statutory accounting practices include a
variety of publications of the National Association of Insurance Commissioners
("NAIC"), as well as state laws, regulations and general administrative rules.
Permitted statutory accounting practices encompass all accounting practices not
so prescribed. The Company does not follow any permitted statutory accounting
practices that have a significant impact on statutory surplus or statutory net
income.
The NAIC's codification initiative has produced a comprehensive guide of revised
statutory accounting principles. While the NAIC has approved a January 1, 2001
implementation date for the newly developed guidance, companies must adhere to
the implementation date adopted by their state of domicile. The Company's state
of domicile, New York, is continuing its comparison of codification and current
statutory accounting requirements to determine necessary revisions to existing
state laws and regulations. The requirements are not expected to have a material
impact on the statutory surplus of the Company.
F-19
<PAGE>
DIVIDENDS
The ability of the Company to pay dividends is dependent on business conditions,
income, cash requirements of the Company and other relevant factors. Under New
York Insurance Law, a notice of intention to distribute any dividend must be
filed with the New York Superintendent of Insurance not less than 30 days prior
to the distribution. Such proposed declaration is subject to the
Superintendent's disapproval.
8. BENEFIT PLANS
PENSION PLANS
Defined benefit pension plans, sponsored by the Corporation, cover domestic
full-time employees and certain part-time employees. Benefits under the pension
plans are based upon the employee's length of service, average annual
compensation and estimated social security retirement benefits. The
Corporation's funding policy for the pension plans is to make annual
contributions in accordance with accepted actuarial cost methods. The costs to
the Company included in net income were $382, $597 and $490 for the pension
plans in 1998, 1997 and 1996, respectively.
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
The Corporation also provides certain health care and life insurance benefits
for retired employees. Qualified employees may become eligible for these
benefits if they retire in accordance with the Corporation's established
retirement policy and are continuously insured under the Corporation's group
plans or other approved plans for ten or more years prior to retirement. The
Corporation shares the cost of the retiree medical benefits with retirees based
on years of service, with the Corporation's share being subject to a 5% limit on
annual medical cost inflation after retirement. The Corporation's postretirement
benefit plans currently are not funded. The Corporation has the right to modify
or terminate these plans.
PROFIT SHARING FUND
Employees of the Corporation and its domestic subsidiaries are also eligible to
become members of The Savings and Profit Sharing Fund of Allstate Employees
("Allstate Plan"). The Corporation's contributions are based on the
Corporation's matching obligation and performance.
The Company's contribution to the Allstate Plan was $567, $164 and $111 in 1998,
1997 and 1996, respectively.
F-20
<PAGE>
9. OTHER COMPREHENSIVE INCOME
The components of other comprehensive income on a pretax and after-tax basis for
the year ended December 31, are as follows:
<TABLE>
1998 1997 1996
------------------------------- ------------------------------------------------------------------
After- After- After-
Pretax Tax tax Pretax Tax tax Pretax Tax tax
------ --- --- ------ --- --- ------ --- ---
Unrealized capital gains
and losses:
- --------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Unrealized holding gains
(losses) arising during
the period $75,817 $(26,536) $49,281 $ 124,702 $(43,645) $ 81,057 $(86,096) $ 30,133 $(55,963)
Adjustments to unrealized
capital gains and losses
arising during the period:
Deferred acquisition costs (348) 122 (226) (861) 301 (560) 762 (267) 495
Reserve for life insurance
policy benefits (42,251) 14,788 (27,463) (80,155) 28,054 (52,101) 24,300 (8,505) 15,795
------- -------- ------- --------- -------- -------- -------- -------- --------
Net unrealized holding
gains arising during the
period 33,218 (11,626) 21,592 43,686 (15,290) 28,396 (61,034) 21,361 (39,673)
------- -------- ------- --------- -------- -------- -------- -------- --------
Less: reclassification
adjustment for realized
net capital gains included
in net income 4,869 (1,704) 3,165 1,183 (414) 769 (3,249) 1,137 (2,112)
------- -------- ------- --------- -------- -------- -------- -------- --------
Unrealized net capital
gains (losses) 28,349 (9,922) 18,427 42,503 (14,876) 27,627 (57,785) 20,224 (37,561)
------- -------- ------- --------- -------- -------- -------- -------- --------
OTHER COMPREHENSIVE
INCOME $28,349 $ (9,922) $18,427 $ 42,503 $(14,876) $ 27,627 $(57,785) $ 20,224 $(37,561)
======= ======== ======= ========= ======== ======== ======== ======== ========
</TABLE>
10. COMMITMENTS AND CONTINGENT LIABILITIES
REGULATIONS AND LEGAL PROCEEDINGS
The Company's business is subject to the effect of a changing social, economic
and regulatory environment. Public and regulatory initiatives have varied and
have included employee benefit regulation, controls on medical care costs,
removal of barriers preventing banks from engaging in the securities and
insurance business, tax law changes affecting the taxation of insurance
companies, the tax treatment of insurance products and its impact on the
relative desirability of various personal investment vehicles, and proposed
legislation to prohibit the use of gender in determining insurance rates and
benefits. The ultimate changes and eventual effects, if any, of these
initiatives are uncertain.
From time to time the Company is involved in pending and threatened litigation
in the normal course of its business in which claims for monetary damages are
asserted. In the opinion of management, the ultimate liability, if any, arising
from such pending or threatened litigation is not expected to have a material
effect on the results of operations, liquidity or financial position of the
Company.
F-21
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV--REINSURANCE
($ in thousands)
GROSS NET
YEAR ENDED DECEMBER 31, 1998 AMOUNT CEDED AMOUNT
- ---------------------------- ------ ----- ------
Life insurance in force $12,656,826 $ 857,500 $11,799,326
=========== =========== ===========
Premiums and contract charges:
Life and annuities $ 116,678 $ 2,541 $ 114,137
Accident and health 5,578 663 4,915
----------- ----------- -----------
$ 122,256 $ 3,204 $ 119,052
=========== =========== ===========
GROSS NET
YEAR ENDED DECEMBER 31, 1997 AMOUNT CEDED AMOUNT
- ---------------------------- ------ ----- ------
Life insurance in force $11,339,990 $ 721,040 $10,618,950
=========== =========== ===========
Premiums and contract charges:
Life and annuities $ 116,167 $ 2,185 $ 113,982
Accident and health 5,883 902 4,981
----------- ----------- -----------
$ 122,050 $ 3,087 $ 118,963
=========== =========== ===========
GROSS NET
YEAR ENDED DECEMBER 31, 1996 AMOUNT CEDED AMOUNT
- ---------------------------- ------ ----- ------
Life insurance in force $ 9,962,300 $ 553,628 $ 9,408,672
=========== =========== ===========
Premiums and contract charges:
Life and annuities $ 114,296 $ 1,398 $ 112,898
Accident and health 5,083 875 4,208
----------- ----------- -----------
$ 119,379 $ 2,273 $ 117,106
=========== =========== ===========
F-22
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V--VALUATION AND QUALIFYING ACCOUNTS
($ in thousands)
BALANCE AT CHARGED TO BALANCE AT
BEGINNING COSTS AND END OF
OF PERIOD EXPENSES DEDUCTIONS PERIOD
--------- -------- ---------- ------
<S> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1998
- ----------------------------
Allowance for estimated losses
on mortgage loans $ 486 $ 114 $ - $ 600
============ ============ ============ ============
YEAR ENDED DECEMBER 31, 1997
- ----------------------------
Allowance for estimated losses
on mortgage loans $ 225 $ 261 $ - $ 486
============ ============ ============ ============
YEAR ENDED DECEMBER 31, 1996
- ----------------------------
Allowance for estimated losses
on mortgage loans $ 1,952 $ (296) $ 1,431 $ 225
============ ============ ============ ============
</TABLE>
F-23
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
Financial Statements as of December 31, 1998
and for the periods ended December 31, 1998
and December 31, 1997, and
Independent Auditors' Report
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholder of
Allstate Life Insurance Company of New York:
We have audited the accompanying statements of net assets of each of the
sub-accounts ("portfolios" for purposes of this report) that comprise Allstate
Life of New York Separate Account A (the "Account"), a Separate Account of
Allstate Life Insurance Company of New York, an affiliate of The Allstate
Corporation, as of December 31, 1998, and the related statements of operations
and changes in net assets for the years ended December 31, 1998 and December 31,
1997 of the Capital Appreciation, Diversified Income, Global Utilities,
Government Securities, Growth, Growth and Income, International Equity, Money
Market, and Value portfolios of the AIM Variable Insurance Funds, Inc. that
comprise the Account. These financial statements are the responsibility of the
Account's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures included
confirmation of securities owned at December 31, 1998. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of each of the portfolios that comprise the
Account as of December 31, 1998, and the results of their operations for the
year then ended and the changes in their net assets for each of the two years in
the period then ended, of each of the portfolios comprising the Account, in
conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
Chicago, Illinois
March 18, 1999
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
STATEMENTS OF NET ASSETS
DECEMBER 31, 1998
- --------------------------------------------------------------------------------
($ and shares in thousands)
ASSETS
Investments in the AIM Variable Insurance Funds, Inc. Portfolios:
Capital Appreciation, 171 shares (cost $3,829) $ 4,305
Diversified Income, 161 shares (cost $1,824) 1,765
Global Utilities, 23 shares (cost $364) 395
Government Securities, 320 shares (cost $3,576) 3,573
Growth, 169 shares (cost $3,615) 4,187
Growth and Income, 278 shares (cost $5,421) 6,604
International Equity, 100 shares (cost $1,818) 1,964
Money Market, 968 shares (cost $968) 968
Value, 272 shares (cost $6,060) 7,152
--------------
Total assets 30,913
LIABILITIES
Payable to Allstate Life Insurance Company of New York:
Accrued contract maintenance charges 8
--------------
Net assets $ 30,905
==============
See notes to financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
AIM Variable Insurance Funds, Inc. Portfolios
---------------------------------------------------------------------------------------
For the Year Ended December 31, 1998
---------------------------------------------------------------------------------------
Capital Diversi- Globa Govt. Growth Inter-
Appreci- fied Utili- Securi- and national Money
ation Income ties ties Growth Income Equity Market Value
------- ------ ------- ------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 115 $ 114 $ 8 $ 95 $ 264 $ 89 $ 16 $ 38 $ 327
Charges from Allstate Life Insurance
Company of New York:
Mortality and expense risk (45) (18) (3) (15) (36) (62) (21) (10) (61)
Administrative expense (4) (1) -- (1) (3) (5) (2) (1) (4)
------- ------- ------- ------- ------- ------- ------- ------- -------
Net investment income (loss) 66 95 5 79 225 22 (7) 27 262
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of
investments:
Proceeds from sales 574 233 124 551 243 395 227 352 342
Cost of investments sold 573 225 125 442 214 377 222 352 310
------- ------- ------- ------- ------- ------- ------- ------- -------
Net realized gains (losses) 1 8 (1) 109 29 18 5 -- 32
Change in unrealized gains (losses) 458 (86) 24 (23) 542 1,076 166 -- 1,022
------- ------- ------- ------- ------- ------- ------- ------- -------
Net gains (losses) on investments 459 (78) 23 86 571 1,094 171 -- 1,054
------- ------- ------- ------- ------- ------- ------- ------- -------
CHANGE IN NET ASSETS RESULTING
FROM OPERATIONS $ 525 $ 17 $ 28 $ 165 $ 796 $ 1,116 $ 164 $ 27 $ 1,316
======= ======= ======= ======= ======= ======= ======= ======= =======
<FN>
See notes to financial statements
</FN>
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------------------------------------------------------
($ in thousands)
AIM Variable Insurance Funds, Inc. Portfolios
---------------------------------------------------------------------------------------
For the Year Ended December 31, 1998
---------------------------------------------------------------------------------------
Capital Diversi- Globa Govt. Growth Inter-
Appreci- fied Utili- Securi- and national Money
ation Income ties ties Growth Income Equity Market Value
------- ------ ------- ------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 66 $ 95 $ 5 $ 79 $ 225 $ 22 $ (7) $ 27 $ 262
Net realized gains (losses) 1 8 (1) 109 29 18 5 -- 32
Change in unrealized gains (losses) 458 (86) 24 (23) 542 1,076 166 -- 1,022
------- ------- ------- ------- ------- ------- ------- ------ -------
Change in net assets resulting from
operations 525 17 28 165 796 1,116 164 27 1,316
FROM CAPITAL TRANSACTIONS
Deposits 2,056 1,223 357 2,725 2,076 3,227 716 510 3,273
Benefit payments (30) (33) (5) -- (7) (82) (7) (37) (7)
Payments on termination (115) (38) (4) (9) (100) (162) (33) (16) (104)
Contract maintenance charges (2) -- -- (1) (1) (2) (1) -- (3)
Transfers among the portfolios and with
the Fixed Account - net (183) (99) (94) 268 31 76 42 32 236
------- ------- ------- ------- ------- ------- ------- ------ -------
Change in net assets resulting from
capital transactions 1,726 1,053 254 2,983 1,999 3,057 717 489 3,395
------- ------- ------- ------- ------- ------- ------- ------ -------
INCREASE IN NET ASSETS 2,251 1,070 282 3,148 2,795 4,173 881 516 4,711
NET ASSETS AT BEGINNING OF YEAR 2,053 695 113 424 1,391 2,429 1,082 452 2,439
------- ------- ------- ------- ------- ------- ------- ------ -------
NET ASSETS AT END OF YEAR $ 4,304 $ 1,765 $ 395 $ 3,572 $ 4,186 $ 6,602 $ 1,963 $ 968 $ 7,150
======= ======= ======= ======= ======= ======= ======= ======= =======
<FN>
See notes to financial statements.
</FN>
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
STATEMENTS OF CHANGES IN NET ASSETS
- -------------------------------------------------------------------------------------------------------------------------------
($ and units in thousands, except value per unit)
AIM Variable Insurance Funds, Inc. Portfolios
--------------------------------------------------------------------------------------
For the Year Ended December 31, 1997
--------------------------------------------------------------------------------------
Capital Diversi- Global Govt. Growth Inter-
Appreci- fied Utili- Securi- and national Money
ation Income ties ties Growth Income Equity Market Value
------- ------ ------- ------- ------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 12 $ (3) $ -- $ (3) $ 39 $ (10) $ 13 $ 10 $ 67
Net realized gains 1 -- -- -- 1 3 1 -- 2
Change in unrealized gains (losses) 17 30 7 20 31 106 (22) -- 70
------- ------- ------- ------- ------- ------- ------- ------- -------
Change in net assets resulting from
operations 30 27 7 17 71 99 (8) 10 139
FROM CAPITAL TRANSACTIONS
Deposits 1,832 570 106 406 1,279 2,277 988 694 2,294
Benefit payments -- -- -- -- -- (49) -- (75) (49)
Payments on termination (10) (5) -- -- (11) (20) (2) (16) (19)
Contract maintenance charges -- -- -- -- -- (1) -- -- (1)
Transfers among the portfolios and with
the Fixed Account - net 113 53 -- 1 25 60 39 (206) 9
------- ------- ------- ------- ------- ------- ------- ------- -------
Change in net assets resulting from
capital transactions 1,935 618 106 407 1,293 2,267 1,025 397 2,234
------- ------- ------- ------- ------- ------- ------- ------- -------
INCREASE IN NET ASSETS 1,965 645 113 424 1,364 2,366 1,017 407 2,373
NET ASSETS AT BEGINNING OF YEAR 88 50 -- -- 27 63 65 45 66
------- ------- ------- ------- ------- ------- ------- ------- -------
NET ASSETS AT END OF YEAR $ 2,053 $ 695 $ 113 $ 424 $ 1,391 $ 2,429 $ 1,082 $ 452 $ 2,439
======= ======= ======= ======= ======= ======= ======= ======= =======
Net asset value per unit at end of year $ 12.74 $ 11.79 $ 13.52 $ 10.83 $ 14.34 $ 14.50 $ 12.60 $ 10.74 $ 13.52
======= ======= ======= ======= ======= ======= ======= ======= =======
Units outstanding at end of year 161 59 8 39 97 168 86 42 180
======= ======= ======= ======= ======= ======= ======= ======= =======
<FN>
See notes to financial statements.
</FN>
</TABLE>
5
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
TWO YEARS ENDED DECEMBER 31, 1998
- --------------------------------------------------------------------------------
1. ORGANIZATION
Allstate Life of New York Separate Account A (the "Account"), a unit
investment trust registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, is a Separate Account of Allstate
Life Insurance Company of New York ("ALNY"). The assets of the Account are
legally segregated from those of ALNY. ALNY is wholly owned by Allstate
Life Insurance Company, a wholly owned subsidiary of Allstate Insurance
Company, which is wholly owned by The Allstate Corporation.
ALNY issues certain annuity contracts, the deposits of which are invested
at the direction of the contractholder in the sub-accounts ("portfolios"
for purposes of this report) that comprise the Account. Contractholders
bear all investment risk for amounts allocated to the Account. The
portfolios invest in the AIM Variable Insurance Funds, Inc. (the "Fund").
ALNY provides insurance and administrative services to the contractholders
for a fee.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Valuation of Investments - Investments consist of shares of the Fund and
are stated at fair value based on quoted market prices at December 31,
1998.
Investment Income - Investment income consists of dividends declared by the
Fund and is recognized on the date of record.
Realized Gains and Losses - Realized gains and losses represent the
difference between the proceeds from sales of portfolio shares by the
Account and the cost of such shares, which is determined on a weighted
average basis.
Federal Income Taxes - The Account intends to qualify as a segregated asset
account as defined in the Internal Revenue Code ("Code"). As such, the
operations of the Account are included with and taxed as a part of ALNY.
ALNY is taxed as a life insurance company under the Code. No federal income
taxes are payable by the Account in 1998 as the Account did not generate
taxable income.
3. CONTRACT CHARGES
ALNY assumes mortality and expense risks related to the operations of the
Account and deducts charges daily at a rate equal to 1.35% per annum of the
daily net assets of the Account. ALNY guarantees that the amount of this
charge will not increase over the life of the contract.
ALNY deducts administrative expense charges daily at a rate equal to .10%
per annum of the daily net assets of the Account.
If aggregate deposits are less than $50,000, ALNY will deduct an annual
maintenance fee of $35 on each contract anniversary.
4. FINANCIAL INSTRUMENTS
The investments of the Account are carried at fair value, based upon quoted
market prices. Accrued contract maintenance charges are of a short-term
nature. It is assumed that their carrying value approximates fair value.
6
<PAGE>
<TABLE>
<CAPTION>
5. UNITS ISSUED AND REDEEMED
(Units in whole amounts) Unit activity during 1998
-------------------------
Units Units Accumulation
Outstanding Outstanding Unit Value
December 31, Units Units December 31, December 31,
1997 Issued Redeemed 1998 1998
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Investments in the AIM Variable
Insurance Funds, Inc. Portfolio:
Capital Appreciation Portfolio 161,013 184,864 (58,541) 287,336 $ 14.98
Diversified Income Portfolio 58,958 110,754 (23,068) 146,644 12.03
Global Utilities Portfolio 8,276 32,920 (15,778) 25,418 15.52
Government Securities Portfolio 39,009 329,878 (66,904) 301,983 11.83
Growth Portfolio 97,039 150,194 (26,402) 220,831 18.95
Growth and Income Portfolio 167,625 228,614 (34,349) 361,890 18.24
International Equity Portfolio 85,934 69,780 (18,816) 136,898 14.34
Money Market Portfolio 42,128 76,593 (31,711) 87,010 11.13
Value Fund Portfolio 180,440 251,601 (26,795) 405,246 17.64
<FN>
Units relating to accrued contract maintenance charges are included in units
redeemed.
</FN>
</TABLE>
7
<PAGE>
PART C
OTHER INFORMATION
24. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS
Allstate Life Insurance Company of New York Financial Statements and Financial
Statement Schedules and the financial statements of Allstate Life of New York
Separate Account A are contained in Part B of this Registration Statement.
(b) EXHIBITS
(1) Form of Resolution of the Board of Directors of Allstate Life Insurance
Company of New York authorizing establishment of the Allstate Life of New
York Separate Account A (Previously filed in Post-Effective Amendment No. 3
to this Registration Statement (File No. 033-65381) dated April 30, 1999.)
(2) Not Applicable
(3) Form of Underwriting Agreement (Previously filed in Pre-Effective Amendment
No. 1 to this Registration Statement (File No. 033-65381) dated September
20, 1996.)
(4)(a) Form of Contract for the AIM Lifetime Plus Variable Annuity (Previously
filed in Pre-Effective Amendment No. 1 to this Registration Statement (File
No. 033-65381) dated September 20, 1996.)
(b) Form of Contract for the AIM Lifetime Plus II Variable Annuity.
(5)(a) Form of Allstate Life Insurance Company of New York Flexible Premium
Deferred Variable Annuity Contract Application (Previously filed in
Pre-Effective Amendment No. 1 to this Registration Statement (File No.
033-65381) dated September 20, 1996.)
(b) Form of Application for AIM Lifetime Plus II Variable Annuity.
(6)(a) Restated Certificate of Incorporation of Allstate Life Insurance Company
of New York (Previously filed in Depositor's Form 10-K dated March 30, 1999
and incorporated herein by reference.)
(b) Amended By-laws of Allstate Life Insurance Company of New York
(Previously filed in Depositor's Form 10-K dated March 30, 1999
and incorporated herein by reference.)
(7) Not applicable
(8) Form of Participation Agreement (Previously filed in Pre-Effective
Amendment No. 1 to this Registration Statement (File No. 033-65381) dated
September 20, 1996.)
(9)(a) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and
General Counsel of Allstate Life Insurance Company of New York (Previously
filed in Pre-Effective Amendment No. 1 to this Registration Statement (File
No. 033-65381) dated September 20, 1996.)
(b) Opinion and Consent of Michael J. Velotta, Vice President, Secretary
and General Counsel of Allstate Life Insurance Company of New York
(10)(a) Independent Auditors' Consent
(b) Consent of Freedman, Levy, Kroll & Simonds
(11) Not Applicable
(12) Not Applicable
(13)(a) Schedule of Computation of Performance Quotation (Previously filed in
Post-Effective Amendment No. 2 to this Registration Statement (File No.
033-65381) dated April 1, 1998.)
(b) Schedule of Computation of Performance Quotation (AIM Lifetime Plus II
Variable Annuity).
(14) Not Applicable
(99)(a) Power of Attorney for Kevin R. Slawin (Previously filed in Pre-Effective
Amendment No. 1 to this Registration Statement (File No. 033-65381) dated
September 20, 1996.)
(b) Power of Attorney for Louis G. Lower, II, Thomas J. Wilson, Michael J.
Velotta, Timothy H. Plohg, Marcia D. Alazraki, Cleveland Johnson, Jr.,
Gerard F. McDermott, Joseph P. McFadden, John R. Raben, Jr., and Sally A.
Slacke (Previously filed in Post-Effective Amendment No. 3 to this
Registration Statement (File No. 033-65381) dated April 30, 1999.)
(c) Power of Attorney for Samuel H. Pilch and Joseph J. Richardson, Jr.,
filed herewith.
<PAGE>
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITION AND OFFICE WITH
BUSINESS ADDRESS DEPOSITOR OF THE ACCOUNT
<S> <C>
Louis G. Lower, II Director and Chairman of the Board of Directors
Thomas J. Wilson, II Director and President
Michael J. Velotta Director, Vice President, Secretary and General Counsel
Marcia D. Alazraki Director
Marla G. Friedman Director and Vice President
Vincent A. Fusco Director
Cleveland Johnson, Jr. Director
Gerard F. McDermott Director
Kenneth R. O'Brien Director
Timothy H. Plohg Director and Vice President
John R. Raben, Jr. Director
Joseph J. Richardson, Jr. Director and Chief Operations Officer
Sally A. Slacke Director
Kevin R. Slawin Director and Vice President
Patricia W. Wilson Director and Assistant Vice President
Karen C. Gardner Vice President
Samuel H. Pilch Controller
Casey J. Sylla Chief Investment Officer
James P. Zils Treasurer
Sharmaine M. Miller Chief Administrative Officer
Richard L. Baker Assistant Vice President
D. Steven Boger Assistant Vice President
Adrian B. Corbiere Assistant Vice President
Dorothy E. Even Assistant Vice President
John M. Goense Assistant Vice President
Judith P. Greffin Assistant Vice President
Keith A. Hauschildt Assistant Vice President
Ronald Johnson Assistant Vice President
Charles D. Mires Assistant Vice President
Barry S. Paul Assistant Vice President
Robert N. Roeters Assistant Vice President
C. Nelson Strom Assistant Vice President and Corporate Actuary
Timothy N. Vander Pas Assistant Vice President
David A. Walsh Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Mary J. McGinn Assistant Secretary
Ralph A. Bergholtz Assistant Treasurer
Mark A. Bishop Assistant Treasurer
Robert B. Bodett Assistant Treasurer
Barbara S. Brown Assistant Treasurer
Nancy M. Bufalino Assistant Treasurer
Peter S. Horos Assistant Treasurer
Thomas C. Jensen Assistant Treasurer
Kathleen A. Knudson Assistant Treasurer
David L. Kocourek Assistant Treasurer
Daniel C. Leimbach Assistant Treasurer
Beth K. Marder Assistant Treasurer
Ronald A. Mendel Assistant Treasurer
Stephen J. Stone Assistant Treasurer
R. Steven Taylor Assistant Treasurer
Louise J. Walton Assistant Treasurer
Jerry D. Zinkula Assistant Treasurer
</TABLE>
The principal business address of Mr. McDermott is P.O. Box 9095, Farmingville,
New York 11738. The principal business address of the other foregoing officers
and directors is 3100 Sanders Road, Northbrook, Illinois 60062.
<PAGE>
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
Incorporated herein by reference to Annual Report on Form 10-K, filed by the
Allstate Corporation on March 26, 1999 (File No. 1-11840).
27. NUMBER OF CONTRACT OWNERS
AIM Lifetime Plus:
As of October 15, 1999, there were 781 nonqualified contracts and 376 qualified
contracts.
AIM Lifetime Plus II Variable Annuity:
As of the date of the filing of this Registration Statement, the offering of the
AIM Lifetime Plus II Variable Annuity Contract had not commenced.
28. INDEMNIFICATION
The by-laws of both Allstate Life Insurance Company of New York (Depositor) and
Allstate Life Financial Services, Inc. (Distributor), provide for the
indemnification of its Directors, Officers and Controlling Persons, against
expenses, judgments, fines and amounts paid in settlement as incurred by such
person, if such person acted properly. No indemnification shall be made in
respect of any claim, issue or matter as to which such person shall have been
adjudged to be liable for negligence or misconduct in the performance of a duty
to the company, unless a court determines such person is entitled to such
indemnity.
Insofar as indemnification for liability arising out of the Securities Act of
1933 may be permitted to directors, 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 payment by the registrant of expenses incurred 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 being registered, the
registrant will, unless in the opinion of is 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.
PRINCIPAL UNDERWRITERS
(a) Registrant's principal underwriter is also the principal underwriter with
respect to the following investment companies:
Glenbrook Life Multi-Manager Variable Account
Glenbrook Life and Annuity Company Variable Annuity Account
Glenbrook Life Variable Life Separate Account B
Glenbrook Life and Annuity Company Separate Account A
Glenbrook Life AIM Variable Life Separate Account A
Glenbrook Life Scudder Variable Account (A)
Glenbrook Life Variable Life Separate Account A
Allstate Life Insurance Company Separate Account A
<PAGE>
(b) The directors and officers of the principal underwriter are:
<TABLE>
<CAPTION>
Name and Principal Business Positions and Offices
Address* of Each Such Person with Underwriter
- ---------------------------- ----------------------
<S> <C>
Louis G. Lower, II Director
Thomas J. Wilson, II Director
Kevin R. Slawin Director
Michael J. Velotta Director and Secretary
John R. Hunter President and Chief Executive Officer
Janet M. Albers Vice President and Controller
Brent H. Hamann Vice President
Andrea J. Schur Vice President
Terry R. Young General Counsel and Assistant Secretary
James P. Zils Treasurer
Lisa A. Burnell Assistant Vice President and Compliance Officer
Robert N. Roeters Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Gregory C. Sernett Assistant Secretary
Nancy M. Bufalino Assistant Treasurer
</TABLE>
* The principal address of Allstate Life Financial Services, Inc. is 3100
Sanders Road, Northbrook, Illinois.
(c) Compensation of Allstate Life Financial Services, Inc.
None
30. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Allstate Life Insurance Company of New York, is located at One
Allstate Drive, P.O. Box 9095, Farmingville, New York 11738.
The Underwriter, Allstate Life Financial Services, Inc. is located at 3100
Sanders Road, Northbrook, Illinois 60062.
Each company maintains those accounts and records required to be maintained
pursuant to Section 31(a) of the Investment Company Act and the rules
promulgated thereunder.
31. MANAGEMENT SERVICES
None
32. UNDERTAKINGS
The Registrant undertakes to file a post-effective amendment to the 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.
Registrant furthermore agrees to include either, as part of any prospectus or
application to purchase a contract offered by the prospectus, a toll-free number
that an applicant can call to request a Statement of Additional Information or a
post card or similar written communication that the applicant can remove to send
for a Statement of Additional Information. Finally, the Registrant agrees to
deliver any Statement of Additional Information and any Financial Statements
required to be made available under this Form N-4 promptly upon written or oral
request.
REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL
REVENUE CODE
Allstate Life Insurance Company of New York represents that it is relying upon a
November 28, 1988 Securities and Exchange Commission no-action letter issued to
the American Council of Life Insurance and that the provisions of paragraphs 1-4
of the no-action letter have been complied with.
REPRESENTATION REGARDING CONTRACT EXPENSES
Allstate Life Insurance Company of New York represents that the fees and charges
deducted under the Flexible Premium Deferred Variable Annuity Contracts hereby
registered by this Registration Statement, in the aggregate, are reasonable in
relation to the services rendered, the expenses expected to be incurred, and the
risks assumed by Allstate Life Insurance Company of New York.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Allstate Life of New York Separate Account A, has caused
this Amendment to the Registration Statement to be signed on its behalf by the
undersigned, thereunto duly authorized, and its seal to be hereunto affixed and
attested, all in the Township of Northfield, State of Illinois, on the 12th day
of November, 1999.
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
(REGISTRANT)
BY: ALLSTATE LIFE INSURANCE COMPANY OF
NEW YORK
(DEPOSITOR)
(SEAL)
By: /s/ MICHAEL J. VELOTTA
----------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
As required by the Securities Act of 1933, this amended Registration Statement
has been duly signed below by the following Directors and Officers of Allstate
Life Insurance Company of New York on the 12th day of November, 1999.
*/LOUIS G. LOWER, II Chairman of the Board and Director
- -------------------- (Principal Executive Officer)
Louis G. Lower, II
*/THOMAS J. WILSON, II President and Director
- ---------------------- (Principal Operating Officer)
Thomas J. Wilson, II
**/JOSEPH J. RICHARDSON, JR. Director and Chief Operations Officer
- ----------------------------
Joseph J. Richardson, Jr.
/s/MICHAEL J. VELOTTA Vice President, Secretary, General
- ----------------------- Counsel and Director
Michael J. Velotta
*/KEVIN R. SLAWIN Vice President and Director
- ------------------ (Principal Financial Officer)
Kevin R. Slawin
**/SAMUEL J. PILCH Controller
- ---------------------- (Principal Accounting Officer)
Samuel H. Pilch
*/TIMOTHY H. PLOHG Vice President and Director
- ------------------
Timothy H. Plohg
*/MARCIA D. ALAZRAKI Director
- --------------------
Marcia D. Alazraki
*/CLEVELAND JOHNSON, JR. Director
- ------------------------
Cleveland Johnson, Jr.
*/GERARD F. MCDERMOTT Director
- ------------------------
Gerard F. McDermott
<PAGE>
*/JOHN R. RABEN, JR. Director
- ---------------------
John R. Raben, Jr.
*/SALLY A. SLACKE Director
- ---------------------
Sally A. Slacke
*/ By Michael J. Velotta, pursuant to Powers of Attorney previously filed.
**/ By Michael J. Velotta, pursuant to Powers of Attorney filed herewith.
<PAGE>
EXHIBIT INDEX
Exhibit Description
Exhibit 4(b) Form of Contract
Exhibit 5(b) Form of Application for a Contract
Exhibit 9(b) Opinion and Consent of General Counsel
Exhibit 10(a) Independent Auditor's Consent
Exhibit 10(b) Consent of Freedman, Levy, Kroll & Simonds
Exhibit 13(b) Performance Data Calculations
Exhibit 99(c) Power of Attorney for Samuel H. Pilch and
Joseph J. Richardson, Jr.
Exhibit (4)(b)
NYLU410
Allstate Life Insurance
Company of New York
A Stock Company
Home Office: One Allstate Drive, Farmingville, New York 11738
Flexible Premium Deferred Variable Annuity
This Certificate is issued to customers of insurance agencies or broker/dealers
that sell A I M mutual funds according to the terms of Master Policy number
64900044 issued by Allstate Life Insurance Company of New York to A I M
Management Group, Inc. A I M Management Group, Inc. is called the Master
Policyholder. This Certificate is governed by New York law.
Throughout this Certificate, "you" and "your" refer to the Certificate owner(s).
"We", "us" and "our" refer to Allstate Life Insurance Company of New York.
Certificate Summary
This flexible premium deferred variable annuity provides a cash withdrawal
benefit and a death benefit during the Accumulation Phase and periodic income
payments beginning on the Payout Start Date during the Payout Phase.
The dollar amount of income payments or other values provided by this
Certificate, when based on the investment experience of the Variable Account,
will vary to reflect the performance of the Variable Account. The smallest
annual rate of net investment return on the Variable Account assets required to
keep Variable Account income payments from decreasing is 4.10%. An annualized
Certificate Maintenance Charge of $35 and 1.10% per year (assessed daily) will
be deducted in equal parts from the Variable Account. For amounts in the
Guaranteed Maturity Fixed Account, the withdrawal benefit, transfers to other
sub-accounts and any periodic income payments may be subject to a Market Value
Adjustment which may result in an upward or downward adjustment of the amount
distributed. Withdrawals will not be subject to a Market Value Adjustment during
the 30 day period following the end of a guarantee period. Death benefits will
not be subject to a negative Market Value Adjustment. This Certificate and
Master Policy do not pay dividends. The tax status of this Certificate as it
applies to the owner should be reviewed each year. PLEASE READ YOUR CERTIFICATE
CAREFULLY. This is a legal contract between the Certificate owner and Allstate
Life Insurance Company of New York. Return Privilege If you are not satisfied
with this Certificate for any reason, you may return it to us or our agent
within 10 days after you receive it. We will refund any purchase payments
allocated to the Variable Account, adjusted to reflect investment gain or loss
from the date of allocation to the date of cancellation, plus any purchase
payments allocated to the Fixed Account options. If this Certificate is
qualified under Section 408 of the Internal Revenue Code, we will refund the
greater of any purchase payments or the Certificate Value.
If you have any questions about your Allstate Life Insurance Company of New York
variable annuity, please contact us at (800) 692-4682.
Secretary Chief Executive Officer
<PAGE>
- ------------------------------------------------------------------------------
TABLE OF CONTENTS
- ------------------------------------------------------------------------------
THE PERSONS INVOLVED.........................................................4
ACCUMULATION PHASE...........................................................5
PAYOUT PHASE................................................................10
INCOME PAYMENT TABLES.......................................................12
GENERAL PROVISIONS..........................................................16
<PAGE>
DPN410
- ------------------------------------------------------------------------------
ANNUITY DATA
- ------------------------------------------------------------------------------
CERTIFICATE NUMBER:.............................................444444444
ISSUE DATE:..............................................January 15, 1998
INITIAL PURCHASE PAYMENT:......................................$10,000.00
IRA
INITIAL ALLOCATION OF PURCHASE PAYMENT:
ALLOCATED
AMOUNT (%)
VARIABLE SUB-ACCOUNTS
Sub-account A 10%
Sub-account B 10%
Sub-account C 10%
Sub-account D 10%
RATE
ALLOCATED GUARANTEED GUARANTEED
AMOUNT (%) INTEREST RATE THROUGH
GUARANTEED MATURITY FIXED ACCOUNT
3 Year Guarantee Period 10% 6.40% 01/15/2001
5 Year Guarantee Period 10% 7.00% 01/15/2003
7 Year Guarantee Period 10% 7.20% 01/15/2005
10 Year Guarantee Period 10% 7.35% 01/15/2008
DOLLAR COST AVERAGING FIXED ACCOUNT
1 Year Guarantee Period 10% 5.00% 01/15/1999
MINIMUM GUARANTEED RATE
Dollar Cost Averaging Fixed Account:.....................3.00%
PAYOUT START DATE:....................................January 15, 2053
OWNER:........................................................John Doe
..............................................................Jane Doe
ANNUITANT:....................................................John Doe
AGE AT ISSUE:...............................................35
SEX:......................................................Male
BENEFICIARY RELATIONSHIP TO OWNER PERCENTAGE
- ----------- --------------------- ----------
Jane Doe Wife 100%
CONTINGENT BENEFICIARY RELATIONSHIP TO OWNER PERCENTAGE
- ---------------------- --------------------- ----------
Susan Doe Daughter 100%
<PAGE>
NYLU410
- ------------------------------------------------------------------------------
IMPORTANT TERMS
- ------------------------------------------------------------------------------
This certificate uses a number of important terms that you may not be familiar
with or have special meaning. The index below identifies the page that describes
each term. Each term is bolded and underlined on the page indicated.
<PAGE>
Term Page
Accumulation Phase 5
Accumulation Unit 7
Accumulation Unit Value 7
Administrative Expense Charge 8
Annual Statement 16
Annuitant 4
Annuity Transfers 14
Annuity Unit Value 13
Beneficiary 4
Certificate Maintenance Charge 8
Certificate Value 7
Certificate Year 5
Charges 8
Crediting Interest 6
Death Benefit 12
Death of Owner or Annuitant 11
Deferment of Payments 17
Dollar Cost Averaging Fixed Account 6
Fixed Account Options 6
Fixed Amount Income Payments 13
Guaranteed Maturity Fixed Account 6
Income Payments 13
Income Plans 13
Incontestability 16
<PAGE>
Term Page
Investment Alternatives 5
Market Value Adjustment 9
Master Policy Amendment or Termination 16
Misstatement of Age or Sex 16
Mortality and Expense Risk Charge 8
Natural Person 5
Net Investment Factor 8
New Owner 4
Owner 4
Payout Phase 12
Payout Start Date 12
Payout Terms and Conditions 14
Preferred Withdrawal Amount 9
Purchase Payments 5
Settlements 16
Settlement Value 11
Taxes 8
Transfers 7
Valuation Period & Valuation Date 7
Variable Account 5
Variable Account Modifications 17
Variable Amount Income Payments 13
Variable Sub-accounts 5
Withdrawal Charge 9
Withdrawal 8
<PAGE>
- ------------------------------------------------------------------------------
THE PERSONS INVOLVED
- ------------------------------------------------------------------------------
Owner The person named at the time of application is the owner of this
Certificate unless subsequently changed. As owner, you will receive any periodic
income payments, unless you have directed us to pay them to someone else.
You may exercise all rights stated in this Certificate, subject to the rights of
any irrevocable beneficiary.
You may change the owner or beneficiary at any time. If the owner is a natural
person, you may change the annuitant prior to the Payout Start Date. Once we
have received a satisfactory written request for an owner, beneficiary or
annuitant change, the change will take effect as of the date you signed it. We
are not liable for any payment we make or other action we take before receiving
any written request for a change from you.
You may not assign an interest in this Certificate as collateral or security for
a loan. However, you may assign periodic income payments under this Certificate
prior to the Payout Start Date. We are bound by an assignment only if it is
signed by the assignor and received by us. We are not responsible for the
validity of an assignment.
If the sole surviving owner dies prior to the Payout Start Date, the beneficiary
becomes the new owner. If the sole surviving owner dies after the Payout Start
Date, the beneficiary becomes the new owner and will receive any subsequent
guaranteed income payments.
If more than one person is designated as owner:
|X| owner as used in this Certificate refers to all people named as owners,
unless otherwise indicated;
|X| any request to exercise ownership rights must be signed by all owners; and
|X| on the death of any person who is an owner, the surviving person(s) named
as owner will continue as the new owner (see New Owner.).
New Owner The New Owner is the Owner determined immediately after death of the
Owner. The New Owner is:
|X| the surviving Owner
|X| if no surviving Owner, the beneficiary(ies) of a single Owner; or
|X| the beneficiary(ies) of a sole surviving Owner
Annuitant The annuitant is the person named on the Annuity Data Page, but may be
changed by the owner, as described above. The annuitant must be a living
individual. If the annuitant dies prior to the Payout Start Date, the new
annuitant will be:
|X| the youngest owner; otherwise,
|X| the youngest beneficiary.
Beneficiary The beneficiary is the person(s) named on the Annuity Data Page, but
may be changed by the owner, as described above. We will determine the
beneficiary from the most recent written request we have received from you. If
you do not name a beneficiary or if the beneficiary named is no longer living,
the beneficiary will be:
|X| your spouse if living; otherwise
|X| your children equally if living; otherwise
<PAGE>
|X| your estate.
The beneficiary may become the owner under the circumstances described in the
Owner and New Owner provision above.
The beneficiary may assign benefits under the Certificate, as described above,
once they are payable to the beneficiary. We are bound by an assignment only if
it is signed by the assignor and received by us. We are not responsible for the
validity of an assignment.
Natural Person As used in this Certificate, natural person means a living
individual or trust entity that is treated as an individual for Federal Income
Tax purposes under the Internal Revenue Code.
- ------------------------------------------------------------------------------
ACCUMULATION PHASE
- ------------------------------------------------------------------------------
Accumulation Phase Defined The "Accumulation Phase" is the first of two phases
during your Certificate. The Accumulation Phase begins on the issue date of the
Certificate stated on the Annuity Data Page. This phase will continue until the
Payout Start Date unless the Certificate is terminated before that date.
Certificate Year "Certificate Year" is the one year period beginning on the
issue date of the Certificate and on each anniversary of the issue date.
Purchase Payments The initial payment is shown on the Annuity Data Page. You may
make subsequent Purchase Payments during the Accumulation Phase. The number of
purchase payments is unlimited. The minimum subsequent Purchase Payment amount
is $500. The maximum purchase Payment is $1,000,000 without prior approval. We
reserve the right to reduce the minimum Purchase Payment amount. Any limits to
Purchase Payments will be applied to all Owners and will be applied in a
non-discriminatory manner.
We will invest the purchase payments in the Investment Alternatives you select.
You may allocate any portion of your purchase payment in whole percents from 0%
to 100% or in exact dollar amounts to any of the Investment Alternatives. The
total allocation must equal 100%.
The allocation of the initial purchase payment is shown on the Annuity Data
Page. Allocation of each subsequent purchase payment will be the same as the
allocation for the most recent purchase payment unless you change the
allocation. You may change the allocation of subsequent purchase payments at any
time, without charge, simply by giving us written notice. Any change will be
effective at the time we receive the notice.
Investment Alternatives The "Investment Alternatives" are the Sub-accounts of
the Variable Account, the Sub-accounts of the Guaranteed Maturity Fixed Account,
and the Dollar Cost Averaging Fixed Account shown on the application. We reserve
the right to limit the availability of the Investment Alternatives. Any limit
will be applied to all Owners and will be applied in a non-discriminatory
manner.
Variable Account The "Variable Account" for this Certificate is the Allstate
Life of New York Separate Account A. This account is a separate investment
account to which we allocate assets contributed under this and certain other
certificates. These assets will not be charged with liabilities arising from any
other business we may have.
Variable Sub-accounts The Variable Account is divided into Sub-accounts. Each
Sub-account invests solely in the shares of the mutual fund underlying that
Sub-account.
<PAGE>
Fixed Account Options The Fixed Account options are the Dollar Cost Averaging
Fixed Account and the Sub-accounts of the Guaranteed Maturity Fixed Account. The
Fixed Account Options are assets of the General Account.
Dollar Cost Averaging Fixed Account. Money in the Dollar Cost Averaging Fixed
Account will earn interest for one year at the current rate in effect at the
time of allocation to the Dollar Cost Averaging Fixed Account. Each Purchase
Payment and associated interest in the Dollar Cost Averaging Fixed Account will
be transferred automatically to other Investment Alternatives in equal monthly
installments after the Owner selects the transfer dollar amount and the
Investment Alternatives. The number of monthly installments must be no more than
12. At the end of 12 months from the date of a purchase payment allocation to
the Dollar Cost Averaging Fixed Account, any remaining portion of the purchase
payment and interest in the Dollar Cost Averaging Fixed Account will be
allocated to other Investment Alternatives as defined by the current Dollar Cost
Averaging Fixed Account allocation. No amount may be transferred into the Dollar
Cost Averaging Fixed Account.
Guaranteed Maturity Fixed Account The Guaranteed Maturity Fixed Account is
divided into Sub-accounts. A Sub-account is identified by the Guarantee Period
and the date the Guarantee Period begins. You create a Sub-account when:
|X| you make a purchase payment; or
|X| you select a new Guarantee Period after the prior Guarantee Period expires;
or
|X| you transfer an amount from an existing Sub-account of the Variable
Account, from another Sub-account of the Guaranteed Maturity Fixed Account,
or from the Dollar Cost Averaging Fixed Account.
A Sub-account continues until the end of the Guarantee Period.
You must select the Guarantee Period for all purchase payments and transfers
allocated to a Sub-account of the Guaranteed Maturity Fixed Account. If you do
not select a Guarantee Period for a purchase payment or transfer, we will assign
the shortest Guarantee Period available under the Certificate for such payment
or transfer. Guarantee Periods are offered at our discretion and may range from
one to ten years. We may change the Guarantee Periods available for future
purchase payments or transfers allocated to the Guaranteed Maturity Fixed
Account.
We will mail you a notice at least 15 but not more than 45 days prior to the
expiration of the Guarantee Period of each Sub-account outlining the options
available at the end of the Guarantee Period. During the 30 day period after a
Guarantee Period expires you may:
|X| take no action and we will automatically apply the Sub-account value to a
Guarantee Period of the shortest duration available to be established on
the day the previous Guarantee Period expired; or
|X| notify us to apply the Sub-account value to a new Guarantee Period(s) to be
established on the day the previous Guarantee Period expired; or
|X| notify us to apply the Sub-account value to any Sub-account of the Variable
Account on the day we receive the notification; or
|X| receive a portion of the Sub-account value or the entire Sub-account value
through a partial or full withdrawal that is not subject to a Market Value
Adjustment; however, a Withdrawal Charge and taxes may apply. In this case,
the amount withdrawn will be deemed to have been withdrawn on the day the
Guarantee Period expired.
<PAGE>
Crediting Interest We credit interest daily to money allocated to the Fixed
Account options at a rate which compounds over one year to the interest rate we
guaranteed when the money was allocated. We will credit interest to the initial
purchase payment from the issue date. We will credit interest to subsequent
purchase payments from the date we receive them at a rate declared by us. We
will credit interest to transfers from the date the transfer is made. The
interest rate for the Fixed Account Options will never be less than the minimum
guaranteed rate shown on the Annuity Data Page.
Transfers Prior to the Payout Start Date, you may transfer amounts between
Investment Alternatives. You may make 12 transfers per Certificate Year without
charge. Each transfer after the 12th transfer in any Certificate Year may be
assessed a $10 transfer fee. Transfers are subject to the following
restrictions.
|X| Any transfer from a Sub-account of the Guaranteed Maturity Fixed Account
will be subject to a Market Value Adjustment unless:
|X| the transfer occurs during the 30 day period after a Guarantee Period
expires; or
|X| the transfer is made as part of a Dollar Cost Averaging program.
|X| At the end of 12 months from the date of a purchase payment allocation to
the Dollar Cost Averaging Fixed Account, any remaining portion of the
purchase payment and interest in the Dollar Cost Averaging Fixed Account
will be allocated to other investment alternatives as defined by the
current Dollar Cost Averaging Fixed Account allocation.
|X| No amount may be transferred into the Dollar Cost Averaging Fixed Account.
We reserve the right to waive the transfer fees and restrictions contained in
this Certificate. Any waiver of fees and/or restrictions will be applied to all
Certificate holders and applied in a non-discriminatory manner.
Certificate Value On the issue date of the Certificate, the "Certificate Value"
is equal to the initial purchase payment. After the issue date, the "Certificate
Value" is equal to the sum of:
|X| the number of Accumulation Units you hold in each Sub-account of the
Variable Account multiplied by the Accumulation Unit Value for that
Sub-account on the most recent Valuation Date; plus
|X| the total value you have in the Dollar Cost Averaging Fixed Account; plus
|X| the sum of Sub-account values in the Guaranteed Maturity Fixed Account.
If you withdraw the entire Certificate Value, you may receive an amount greater
or less than the Certificate Value because a Market Value Adjustment, a
Withdrawal Charge, income tax withholding, and a premium tax charge may apply.
Valuation Period and Valuation Date A "Valuation Period" is the time interval
between the closing of the New York Stock Exchange on consecutive Valuation
Dates. A "Valuation Date" is any date the New York Stock Exchange is open for
trading.
Accumulation Units and Accumulation Unit Value Amounts which you allocate to a
Sub-account of the Variable Account are used to purchase Accumulation Units in
that Sub-account. The Accumulation Unit Value for each Sub-account at the end of
any Valuation Period is calculated by multiplying the Accumulation Unit Value at
the end of the immediately preceding Valuation Period by the Sub-account's Net
Investment Factor for the Valuation Period. The Accumulation Unit Values may go
up or down. Additions or transfers to a Sub-account of the Variable Account will
increase the number of Accumulation Units for that Sub-account. Withdrawals or
transfers from a Sub-account of the Variable Account will decrease the number of
Accumulation Units for that Sub-account.
<PAGE>
Net Investment Factor For each Sub-account of the Variable Account, the "Net
Investment Factor" for a Valuation Period is (A) divided by (B), minus (C)
where:
(A) is the sum of:
(1) the net asset value per share of the mutual fund underlying the
Sub-account determined at the end of the current Valuation Period,
plus
(2) the per share amount of any dividend or capital gain distributions
made by the mutual fund underlying the Sub-account during the current
Valuation Period.
(B) is the net asset value per share of the mutual fund underlying the
Sub-account determined as of the end of the immediately preceding Valuation
Period.
(C) is the sum of the annualized Administrative Expense Charge and the
annualized Mortality and Expense Risk Charge divided by the number of days
in the current calendar year and then multiplied by the number of calendar
days in the current Valuation Period.
Charges The charges for this Certificate include Administrative Expense Charges,
Mortality and Expense Risk Charges, Certificate Maintenance Charges, transfer
charges, and taxes. If a withdrawal is made, the Certificate may also be subject
to a Withdrawal Charge and a Market Value Adjustment.
Administrative Expense Charge The annualized Administrative Expense Charge will
never be greater than 0.10%. (See Net Investment Factor for a description of how
this charge is applied.)
Mortality and Expense Risk Charge The annualized Mortality and Expense Risk
Charge will never be greater than 1.00%. (See Net Investment Factor for a
description of how this charge is applied.)
Our actual mortality and expense experience will not adversely affect the dollar
amount of variable benefits or other contractual payments or values under this
Certificate.
Certificate Maintenance Charge Prior to the Payout Start Date, a Certificate
Maintenance Charge will be deducted from your Certificate Value on each
Certificate anniversary. The charge is only deducted from the Sub-accounts of
the Variable Account. The charge will be deducted on a pro-rata basis from each
Sub-account of the Variable Account in the proportion that your value in each
bears to your total value in all Sub-accounts of the Variable Account. A full
Certificate Maintenance Charge will be deducted if the Certificate is terminated
on any date other than a Certificate anniversary. The annualized charge will
never be greater than $35 per Certificate Year. The Certificate Maintenance
Charge will be waived if total purchase payments are $50,000 or more or if all
money is allocated to the Fixed Account options on the Certificate anniversary.
After the Payout Start Date the Certificate Maintenance Charge will be deducted
in equal parts from each income payment. The Certificate Maintenance Charge will
be waived if the Certificate Value on the Payout Start Date is $50,000 or more
or if all payments are Fixed Amount Income Payments.
Taxes Any premium tax or income tax withholding relating to this Certificate may
be deducted from purchase payments or the Certificate Value when the tax is
incurred or at a later time.
Withdrawal You have the right to withdraw part or all of your Certificate Value
at any time during the Accumulation Phase. A withdrawal must be at least $50. If
you withdraw the entire Certificate Value, the Certificate will terminate.
<PAGE>
You must specify the Investment Alternative(s) from which you wish to make a
withdrawal. When you make a withdrawal, your Certificate Value will be reduced
by the amount paid to you and any applicable Withdrawal Charge, Market Value
Adjustment, and taxes. A Certificate Maintenance Charge will also be deducted if
the Certificate is terminated. Any Withdrawal Charge will be waived on
withdrawals taken to satisfy IRS minimum distribution rules. This waiver is
permitted only for withdrawals which satisfy distributions resulting from this
Certificate.
Preferred Withdrawal Amount Each Certificate Year the Preferred Withdrawal
Amount is equal to 15% of the Certificate Value as of the beginning of that
Certificate Year. Each Certificate Year you may withdraw the Preferred
Withdrawal Amount without any Withdrawal Charge or Market Value Adjustment. The
Preferred Withdrawal Amount is allocated beginning with the longest guarantee
period of the applicable Guaranteed Maturity Fixed Account. Any Preferred
Withdrawal Amount which is not withdrawn in a year may not be carried over to
increase the Preferred Withdrawal Amount available in a subsequent year.
Withdrawal Charge Withdrawals in excess of the Preferred Withdrawal Amount will
be subject to a Withdrawal Charge as follows:
Payment Year: 1 2 3 4 5 6 7 8 and Later
Percentage: 7% 6% 5% 4% 3% 2% 1% 0%
For each purchase payment withdrawal, the "Payment Year" in the table is
measured from the date we received the purchase payment.
To determine the Withdrawal Charge, we assume that purchase payments are
withdrawn first, beginning with the oldest payment. When all purchase payments
have been withdrawn, additional withdrawals will not be assessed a Withdrawal
Charge.
The Withdrawal Charge is determined by multiplying the percentage corresponding
to the Payment Year times that part of each purchase payment withdrawal that is
in excess of the Preferred Withdrawal Amount, adjusted by a Market Value
Adjustment.
Any Withdrawal Charge will be waived on withdrawals taken to satisfy IRS minimum
distribution rules. This waiver is permitted only for withdrawals which satisfy
distributions resulting from this Certificate.
Market Value Adjustment Activities in a Sub-account of the Guaranteed Maturity
Fixed Account that may be subject to a Market Value Adjustment are withdrawals
in excess of the Preferred Withdrawal Amount, transfers, and amounts applied to
an income plan. An activity will be subject to a Market Value Adjustment unless:
|X| it occurs during the 30 day period after a Guarantee Period expires; or
|X| it is a transfer that is part of a Dollar Cost Averaging program.
A Market Value Adjustment is an increase or decrease in the amount reflecting
changes in the level of interest rates since the Sub-account was established. As
used in this provision, "Treasury Rate" means the U. S. Treasury Note Constant
Maturity yield as reported in Federal Reserve Bulletin Release H.15. The Market
Value Adjustment is based on the following:
I = the Treasury Rate for a maturity equal to the Sub-account's
Guarantee Period for the week preceding the establishment of
the Sub-account;
<PAGE>
J = the Treasury Rate for a maturity of N years for the week
preceding the receipt of the withdrawal request, transfer
request, death benefit request, or Income Payment request. If
a Note with a maturity of N years is not available, a weighted
average will be used. If N is one year or less, J will be the
1-year Treasury Rate. In the event that the U.S. Treasury Note
Constant Maturity weekly yield is no longer available, a
suitable replacement index, subject to the approval of the New
York Insurance Department, will be used.
N = the number of whole and partial years from the date we
receive the withdrawal, transfer, or death benefit request, or
from the Payout Start Date, to the end of the Sub-account's
Guarantee Period;
An adjustment factor is determined from the following formula:
.9 x (I - J) x N
The amount subject to a Market Value Adjustment that is deducted from a
Sub-account of the Guaranteed Maturity Fixed Account is multiplied by the
adjustment factor to determine the amount of the Market Value Adjustment.
If interest rates increase significantly after a Guaranteed Maturity Fixed
Account is established, the Market Value Adjustment could reduce the amount
withdrawn to an amount that may result in an interest rate which is less than
the minimum guaranteed rate.
Any Market Value Adjustment will be waived on withdrawals taken to satisfy IRS
minimum distribution rules. This waiver is permitted only for withdrawals which
satisfy distributions resulting from this Certificate.
<TABLE>
<CAPTION>
Withdrawal Adjustment Example
Issue Date: January 1, 1999
Initial Purchase Payment $50,000
- ------------------- ---------------- ----------------- ---------------- ----------------- ------------------- --------------
Death Benefit Amount
- ------------------- ---------------- ----------------- ---------------- ----------------- ------------------- --------------
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Contract Value Contract Value Purchase Maximum
Type of Before Transaction After Occurrence Payment Value Anniversary
Date Occurrence Occurrence Amount Value
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
1/1/99 Issue Date $0.00 $50,000 $50,000 $50,000 36160
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
1/1/06 Anniversary $55,000 $0.00 $55,000 $50,000 $55,000
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
7/1/06 Partial $60,000 $15,000 $45,000 $37,500 $41,250
withdrawal
- ------------------- ---------------- ----------------- ---------------- ----------------- ---------------- -----------------
Purchase Payment Value Death Benefit
Partial Withdrawal Amount (w) $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000
Value of Applicable Death Benefit Amount Prior to Partial Withdrawal (d) $50,000
Withdrawal Adjustment [(w)/(a)]*(d) $12,500
Adjusted Death Benefit $37,500
Maximum Anniversary Value Death Benefit
Partial Withdrawal Amount (w) $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000
Value of Applicable Death Benefit Amount Prior to Partial Withdrawal (d) $55,000
Withdrawal Adjustment [(w)/(a)]*(d) $13,750
Adjusted Death Benefit $41,250
</TABLE>
<PAGE>
Settlement Value The Settlement Value is the same amount that would be paid in
the event of a full withdrawal of the Certificate Value. We will calculate the
Settlement Value at the end of the Valuation Period coinciding with the
requested distribution date for payment or on the mandatory distribution date of
5 years after the date of death, whichever is earlier.
Death of Owner or Annuitant A benefit may be paid to the owner determined
immediately after the death if, prior to the Payout Start Date:
|X| any owner dies; or
|X| the annuitant dies and the owner is not a natural person.
If the owner eligible to receive a benefit is not a natural person, the owner
may elect to receive the benefit in one or more distributions. Otherwise, if the
owner is a natural person, the owner may elect to receive a benefit either in
one or more distributions or by periodic payments through an Income Plan.
A Death Benefit will be paid if:
|X| the owner elects to receive the Death Benefit within 180 days of the date
of death, and
|X| payment is made as of the date we determine the value of the Death Benefit,
as defined at the end of the Death Benefit provision.
Otherwise, the Settlement Value will be paid. In any event, the entire value of
the Certificate must be distributed within five (5) years after the date of
death unless an Income Plan is elected or a surviving spouse continues the
Certificate in accordance with the following provisions. We reserve the right to
extend the 180 day period when we will pay the Death Benefit.
If an Income Plan is elected, payments from the Income Plan must begin within
one year of the date of death and must be payable throughout:
|X| the life of the owner; or
|X| a period not to exceed the life expectancy of the owner; or
|X| the life of the owner with payments guaranteed for a period not to exceed
the life expectancy of the owner.
If the surviving spouse of the deceased owner is the new owner, then the spouse
may elect one of the options listed above or may continue the Certificate in the
Accumulation Phase as if the death had not occurred. If the Certificate is
continued in the Accumulation Phase, the following conditions apply:
|X| On the day the Certificate is continued, the Certificate Value will be the
Death Benefit as determined at the end of the Valuation Period during which
we received due proof of death.
|X| Prior to the Payout Start Date, the Death Benefit of the continued
Certificate will be the greater of:
|X| the sum of all purchase payments reduced by a withdrawal adjustment,
as defined in the Death Benefit provision; or
|X| the Certificate Value on the date we determine the Death Benefit.
<PAGE>
Death Benefit Except as defined above when the surviving spouse continues the
Certificate, prior to the Payout Start Date, the Death Benefit is equal to the
greatest of the following Death Benefit alternatives:
|X| the sum of all purchase payments reduced by a withdrawal adjustment, as
defined below; or
|X| the Certificate Value on the date we determine the Death Benefit; or
|X| the amount that would have been payable in the event of a full withdrawal
of the Certificate Value on the date we determine the Death Benefit; or
|X| the Certificate Value on each Death Benefit Anniversary prior to the date
we determine the Death Benefit, increased by any purchase payments made
since that Death Benefit Anniversary and reduced by a withdrawal
adjustment, as defined below.
The first Death Benefit Anniversary is the 7th Certificate anniversary.
Subsequent Death Benefit Anniversaries are those Certificate anniversaries that
are multiples of 7 Certificate Years, beginning with the 14th Certificate
anniversary. For example, the 7th, 14th, and 21st Certificate anniversaries are
the first three Death Benefit Anniversaries.
The withdrawal adjustment is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the value of the applicable Death Benefit alternative immediately
prior to the withdrawal.
We will determine the value of the Death Benefit as of the end of the Valuation
Period during which we receive a complete request for payment of the Death
Benefit. A complete request includes due proof of death.
- ------------------------------------------------------------------------------
PAYOUT PHASE
- ------------------------------------------------------------------------------
Payout Phase Defined The "Payout Phase" is the second of the two phases during
your Certificate. During this phase the Certificate Value adjusted by any Market
Value Adjustment and less any applicable taxes is applied to the Income Plan you
choose and is paid out as provided in that plan. In lieu of applying all or a
portion of the Certificate Value to Income Plans 1 or 2 described below, you may
elect to:
|X| receive a withdrawal benefit as described in the Withdrawal provision; or
|X| receive income payments for a specified period.
The Payout Phase begins on the Payout Start Date. It continues until we make the
last payment as provided by the Income Plan chosen.
Payout Start Date The "Payout Start Date" is the date the Certificate Value
adjusted by any Market Value Adjustment and less any applicable taxes is applied
to an Income Plan. The anticipated Payout Start Date is shown on the Annuity
Data Page. You may change the Payout Start Date by writing to us at least 30
days prior to this date.
The Payout Start Date must be on or before the annuitant's 90th birthday.
<PAGE>
Income Plans An "Income Plan" is a series of payments on a scheduled basis to
you or to another person designated by you. The Certificate Value on the Payout
Start Date adjusted by any Market Value Adjustment and less any applicable
taxes, will be applied to your Income Plan choice from the following list:
1. Life Income with Guaranteed Payments. We will make payments for as long as
the annuitant lives. If the annuitant dies before the selected number of
guaranteed payments have been made, we will continue to pay the remainder
of the guaranteed payments.
2. Joint and Survivor Life Income with Guaranteed Payments. We will make
payments for as long as either the annuitant or joint annuitant, named at
the time of Income Plan selection, lives. If both the annuitant and the
joint annuitant die before the selected number of guaranteed payments have
been made, we will continue to pay the remainder of the guaranteed
payments.
3. Guaranteed Number of Payments. We will make payments for a specified number
of months beginning on the Payout Start Date. These payments do not depend
on the annuitant's life. The number of months guaranteed may be from 60 to
360.
We reserve the right to make available other Income Plans.
Income Payments Income payment amounts may vary based on any Sub-account of the
Variable Account, "Variable Amount Income Payments", and/or may be fixed for the
duration of the Income Plan, "Fixed Amount Income Payments". The method of
calculating the initial payment is different for the two accounts. The
Certificate Maintenance Charge will be deducted in equal payments from each
income payment. The Certificate Maintenance Charge will be waived if the
Certificate Value on the Payout Start Date is $50,000 or more or if all payments
are Fixed Amount Income Payments.
Variable Amount Income Payments Variable Amount Income Payments will vary to
reflect the performance of the Variable Account. The portion of the initial
income payment based upon a particular Variable Sub-account is determined by
applying the amount of the Certificate Value in that Sub-account on the Payout
Start Date, less any applicable premium tax, to the appropriate value from the
Income Payment Table. This portion of the initial income payment is divided by
the Annuity Unit Value on the Payout Start Date for that Variable Sub-account to
determine the number of Annuity Units from that Sub-account which will be used
to determine subsequent income payments. Unless transfers are made between
Sub-accounts, each subsequent income payment from that Sub-account will be that
number of Annuity Units times the Annuity Unit Value for the Sub-account for the
Valuation Date on which the income payment is made.
Annuity Unit Value The Annuity Unit Value for each Sub-account of the Variable
Account at the end of any Valuation Period is calculated by:
|X| multiplying the Annuity Unit Value at the end of the immediately preceding
Valuation Period by the Sub-account's Net Investment Factor during the
period; and then
|X| dividing the result by 1.000 plus the assumed investment rate for the
period. The assumed investment rate is an effective annual rate of 3%.
Fixed Amount Income Payments The income payment amount derived from any monies
allocated to the Fixed Account options during the Accumulation Phase are fixed
for the duration of the Income Plan. The Fixed Amount Income Payment is
calculated by applying the portion of the Certificate Value in the Fixed Account
options on the Payout Start Date, adjusted by any Market Value Adjustment and
less any applicable premium tax, to the greater of the appropriate value from
the Income Payment Table selected or such other value as we are offering at that
time.
<PAGE>
Annuity Transfers After the Payout Start Date, no transfers may be made from the
Fixed Amount Income Payment. Transfers between Sub-accounts of the Variable
Account, or from the Variable Amount Income Payment to the Fixed Amount Income
Payment may not be made for six months after the Payout Start Date. Transfers
may be made once every six months thereafter.
Payout Terms and Conditions The income payments are subject to the following
terms and conditions:
|X| If no purchase payments have been received for at least three years
preceding the Payout Start Date, and either the Certificate Value is less
than $2,000, or not enough to provide an initial payment of at least $20,
we reserve the right to:
|X| change the payment frequency to make the payment at least $20; or
|X| terminate the Certificate and pay you the Certificate Value adjusted
by any Market Value Adjustment and less any applicable taxes in a lump
sum.
|X| If we do not receive a written choice of an Income Plan from you at least
30 days before the Payout Start Date, the Income Plan will be Life Income
with Guaranteed Payments for 120 months.
|X| If you choose an Income Plan which depends on any person's life, we may
require:
|X| proof of age and sex before income payments begin; and
|X| proof that the annuitant or joint annuitant is still alive before
we make each payment.
|X| After the Payout Start Date, the Income Plan cannot be changed and
withdrawals cannot be made unless income payments are being made from the
Variable Account under Income Plan 3. You may terminate the income payments
being made from the Variable Account under Income Plan 3 at any time and
withdraw their value, subject to Withdrawal Charges.
|X| If any owner dies during the Payout Phase, the remaining income payments
will be paid to the successor owner as scheduled.
- ------------------------------------------------------------------------------
INCOME PAYMENT TABLES
- ------------------------------------------------------------------------------
The initial income payment will be at least the amount based on the adjusted age
of the annuitant(s) and the tables below, less any federal income taxes which
are withheld. The adjusted age is the actual age on the Payout Start Date
reduced by one year for each six full years between January 1, 1983 and the
Payout Start Date. Income payments for ages and guaranteed payment periods not
shown below will be determined on a basis consistent with that used to determine
those that are shown. The Income Payment Tables are based on 3.0% interest and
the 1983a Annuity Mortality Tables.
The annuity benefits applied for will be offered at rates not less than those
offered to new immediate annuity applicants of the same class at the Payout
Start Date.
<PAGE>
<TABLE>
<CAPTION>
Income Plan 1 - Life Income with Guaranteed Payments for 120 Months
============================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
============================================================================================================================
- ------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Annuitant's Annuitant's Age Annuitant's
Age Male Female Male Female Age Male Female
- ------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
- ------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
35 $3.43 $3.25 49 $4.15 $3.82 63 $5.52 $4.97
36 3.47 3.28 50 4.22 3.88 64 5.66 5.09
37 3.51 3.31 51 4.29 3.94 65 5.80 5.22
38 3.55 3.34 52 4.37 4.01 66 5.95 5.35
39 3.60 3.38 53 4.45 4.07 67 6.11 5.49
40 3.64 3.41 54 4.53 4.14 68 6.27 5.64
41 3.69 3.45 55 4.62 4.22 69 6.44 5.80
42 3.74 3.49 56 4.71 4.29 70 6.61
43 3.79 3.53 57 4.81 4.38 71 5.96
44 3.84 3.58 58 4.92 4.46 72 6.78 6.13
45 3.90 3.62 59 5.02 4.55 73 6.96 6.31
46 3.96 3.67 60 5.14 4.65 74 7.13 6.50
47 4.02 3.72 61 5.26 4.75 75 7.31 6.69
48 4.08 3.77 62 5.39 4.86 7.49 6.88
- ------------------- ---------------------- ---------------- ---------------------- ---------------- ========================
Income Plan 2 - Joint and Survivor Life Income with Guaranteed Payments for 120 Month
==============================================================================================================================
Monthly Income Payment for each $1,000 Applied to this Income Plan
==============================================================================================================================
- -------------------- =========================================================================================================
Female Annuitant's Age
- -------------------- =========================================================================================================
- -------------------- ---------- ------------ ----------- ---------- ---------- ---------- ---------- --------- ===============
Male
Annuitant's 35 40 45 50 55 60 65 70 75
Age
- -------------------- ---------- ------------ ----------- ---------- ---------- ---------- ---------- --------- ===============
- -------------------- ---------- ---------- ---------- ---------- ----------- ---------- ------------ ----------- =============
35 $3.09 $3.16 $3.23 $3.28 $3.32 $3.36 $3.39 $3.40 $3.42
40 3.13 3.22 3.31 3.39 3.46 3.51 3.56 3.59 3.61
45 3.17 3.28 3.39 3.50 3.60 3.69 3.76 3.81 3.85
50 3.19 3.32 3.45 3.60 3.74 3.87 3.98 4.07 4.14
55 3.21 3.35 3.51 3.68 3.87 4.06 4.23 4.37 4.48
60 3.23 3.37 3.55 3.75 3.98 4.23 4.47 4.70 4.88
65 3.24 3.39 3.57 3.80 4.07 4.37 4.71 5.04 5.34
70 3.24 3.40 3.59 3.83 4.13 4.48 4.90 5.36 5.81
75 3.25 3.41 3.61 3.86 4.17 4.56 5.04 5.61 6.22
- -------------------- ---------- ---------- ---------- ---------- ----------- ---------- ------------ ----------- =============
</TABLE>
Income Plan 3 - Guaranteed Number of Payments
- --------------------------------- =============================================
Monthly Income Payment for each
Specified Period $1,000 Applied to this Income Plan
- --------------------------------- =============================================
- --------------------------------- =============================================
10 Years $9.61
11 Years 8.86
12 Years 8.24
13 Years 7.71
14 Years 7.26
15 Years 6.87
16 Years 6.53
17 Years 6.23
18 Years 5.96
19 Years 5.73
20 Years 5.51
- --------------------------------- =============================================
<PAGE>
- ------------------------------------------------------------------------------
GENERAL PROVISIONS
- ------------------------------------------------------------------------------
The Entire Contract The entire contract consists of this Certificate, the Master
Policy, the Master Policy application, any written applications, and any
Certificate amendments and riders.
All statements made in a written application are representations and not
warranties. No statement will be used by us in defense of a claim or to void the
Certificate unless it is included in a written application.
We may not modify this Certificate without your consent, except to make it
comply with any changes in the Internal Revenue Code or as required by any other
applicable law. Only our officers may change the Master Policy or this
Certificate or waive a right or requirement. No other individual may do this.
Master Policy Amendment or Termination The Master Policy may be amended by us,
terminated by us, or terminated by the Master Policyholder without the consent
of any other person. No termination completed after the issue date of this
Certificate will adversely affect your rights under this Certificate. Nothing in
the Master Policy will invalidate or impair any rights of Certificate owners.
Incontestability We will not contest the validity of this Certificate after the
issue date.
Misstatement of Age or Sex If any age or sex has been misstated, we will pay the
amounts which would have been paid at the correct age and sex.
If we find the misstatement of age or sex after the income payments begin, we
will:
|X| pay all amounts underpaid including interest calculated at an effective
annual rate of 6%; or
|X| stop payments until the total payments are equal to the corrected amount.
Annual Statement At least once a year, prior to the Payout Start Date, we will
send you a statement containing Certificate Value information. We will provide
you with Certificate Value information at any time upon request. At least once
in each contract year, we shall mail to the holder of this certificate under
which benefit payments have not yet commenced a statement as of a date during
such year as to the amount available to provide a paid-up annuity benefit, any
cash surrender benefit, and any death benefit under the contract. The statement
shall be addressed to the last post-office address of the certificateholder know
to us as required by New York Insurance Law.
Settlements We may require that this Certificate be returned to us prior to any
settlement. We must receive due proof of death of the owner or annuitant prior
to settlement of a death claim. Due proof of death is one of the following:
|X| a certified copy of a death certificate; or
|X| a certified copy of a decree of a court of competent jurisdiction as to a
finding of death; or
|X| any other proof acceptable to us.
Any paid-up annuity, cash surrender, withdrawal, or Death Benefit under this
Certificate will not be less than the minimum benefits required by any statute
of the state in which the Certificate is delivered.
<PAGE>
Deferment of Payments We will pay any amounts due from the Variable Account
under this Certificate within seven days, unless:
|X| the New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on such Exchange is restricted;
|X| an emergency exists as defined by the Securities and Exchange Commission;
or
|X| the Securities and Exchange Commission permits delay for the protection of
Certificate holders.
We reserve the right to postpone payments or transfers from the Fixed Account
options for up to six months. If we elect to postpone payments from the Fixed
Account options for 10 days or more, we will pay interest as required by
applicable law. Any interest would be payable from the date the withdrawal or
transfer request is received by us to the date the payment or transfer is made.
Variable Account Modifications We reserve the right, subject to New York
Insurance Law and applicable federal law, to make additions to, deletions from,
or substitutions for the mutual fund shares underlying the Sub-accounts of the
Variable Account. We will not substitute any shares attributable to your
interest in a Sub-account of the Variable Account without notice to you and
prior approval of the Securities and Exchange Commission, to the extent required
by the Investment Company Act of 1940, as amended.
We reserve the right to establish additional Sub-accounts of the Variable
Account, each of which would invest in shares of another mutual fund. You may
then instruct us to allocate purchase payments or transfers to such
Sub-accounts, subject to any terms set by us or the mutual fund. We reserve the
right to limit the availability of funds for this Certificate.
In the event of any such substitution or change, we may by endorsement, make
such changes as may be necessary or appropriate to reflect such substitution or
change.
If we deem it to be in the best interests of persons having voting rights under
the certificates, the Variable Account may be operated as a management company
under the Investment Company Act of 1940, as amended or it may be deregistered
under such Act in the event such registration is no longer required.
<PAGE>
Allstate Life Insurance Company of New York
One Allstate Drive, Farmingville, NY 11738
Service Address: PO Box 94038
Palatine, IL 60094-4038
Dollar Cost Averaging Disclosure Form
For Use With New York Policies, Contracts, and Certificates
Dollar Cost Averaging ("DCA") is a method of investing. A primary objective of
DCA is to attempt to reduce the impact of short-term price fluctuations on your
investment portfolio. If you elect DCA, approximately the same dollar amounts
are transferred on a periodic basis (e.g., monthly) from your source Account
(e.g., your chosen DCA program Account) to your selected Sub-account(s). By this
method, more Accumulation Units are purchased when the value per Accumulation
Unit is low and fewer Accumulation Units are purchased when the value per
Accumulation Unit is high. Therefore, a lower average price per Accumulation
Unit may be achieved over the long term. This method of investing allows you to
take advantage of market fluctuations, but it does not assure a profit or
protect against loss in declining markets.
Under our DCA program, you may allocate a contract contribution into a
designated DCA Account(s) and pre-authorize transfers to any of the Sub-accounts
over a time period. Each month, we will transfer amounts out of the DCA
Account(s) into the Sub-accounts you selected.
The interest credited rate applied to assets remaining in the Dollar Cost
Averaging Fixed Account(s) (the "DCA Account(s)") exceeds our actual earnings
rate on supporting assets less appropriate risk and expense adjustments. We will
recover amounts credited over amounts earned from the mortality and expense risk
charges described in your Certificate. These charges do not increase as a result
of allocating money to our DCA Account(s).
(This form must be submitted with the Application).
- ---------------------------- -----------------------------
Contract Owner Signature Date
- ----------------------------- -----------------------------
Print Name Social Security Number
- ----------------------------- -----------------------------
Joint Owner Signature Date
(if applicable)
- ----------------------------- -----------------------------
Print Name Social Security Number
- ----------------------------- -----------------------------
Agent Name Date
NYLR328
<PAGE>
NYLU411 (6/98)
Page 1
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(herein called "we" or "us")
Enhanced Death Benefit Rider
Due to the variable nature of the Certificate, this Rider does not guarantee
that the Enhanced Death Benefit will increase the Death Benefit found in the
Certificate.
This rider was issued because you selected the Enhanced Death Benefit at the
time you applied for this annuity.
Enhanced Death Benefit The Death Benefit provision of your Certificate is
modified as follows:
If the owner is a living individual, the Enhanced Death Benefit applies only to
the death of the owner. If the owner is not a living individual, the Enhanced
Death Benefit applies only to the death of the annuitant.
The Death Benefit will be the greater of the values stated in your Certificate,
or the value of the Enhanced Death Benefit.
The Enhanced Death Benefit will cease on the date we determine the value of the
Death Benefit.
Enhanced Death Benefit.
At issue, the Enhanced Death Benefit
is equal to the initial purchase payment. After issue, the Enhanced Death
Benefit is recalculated when a purchase payment or withdrawal is made or on a
Certificate anniversary as follows:
1. For purchase payments, the Enhanced Death Benefit is equal
to the most recently calculated Enhanced Death Benefit
plus the purchase payment.
2. For withdrawals, the Enhanced Death Benefit is equal to
the most recently calculated Enhanced Death Benefit
reduced by a withdrawal adjustment defined below.
3. On each Certificate anniversary, the Enhanced Death
Benefit is equal to the greater of the Certificate Value
or the most recently calculated Enhanced Death Benefit.
In the absence of any withdrawals or purchase payments, the Enhanced Death
Benefit will be the greatest of all Certificate anniversary Certificate
Values on or prior to the date we calculate the Death Benefit.
The Enhanced Death Benefit will be recalculated for purchase payments,
withdrawals and on Certificate anniversaries until the oldest owner, or the
annuitant if the owner is not a living individual, attains age 85.
After age 85, the Enhanced Death Benefit will be recalculated only for
purchase payments and withdrawals.
Withdrawal Adjustment
The withdrawal adjustment is equal to (a) divided by (b), with the
result multiplied by (c), where:
(a) = the withdrawal amount.
(b) = the Certificate Value immediately prior to the withdrawal.
(c) = the most recently calculated Enhanced Death Benefit.
Mortality and Expense Risk Charge The Mortality and Expense Risk Charge
provision of your Certificate is modified as follows:
The annualized Mortality and Expense Risk Charge of 1.00% is changed to 1.20%.
After the death of the owner, if the surviving spouse elects to continue the
Certificate in the Accumulation Phase, then the annualized Mortality and Expense
Risk Charge of 1.20% will be changed to 1.00%. The effective date of this change
will be the date we determine the value of the Death Benefit.
Except as amended in this rider, the Certificate remains unchanged.
Michael J. Velotta Louis G. Lower, II
Secretary Chief Executive Officer
<PAGE>
NYLU413 (6/98)
Page 1
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(herein called "we" or "us")
Certificate Amendment for Joint Annuitants
This amendment does not apply to tax qualified certificates.
The following changes are made to your Certificate because you elected joint
annuitants at the time of application or changed the annuitant to joint
annuitants as provided in the Owner provision of the Certificate.
I. The Annuitant provision is modified as follows:
Priorto the Payout Start Date joint annuitants may be named. The Primary
Annuitant will be the youngest joint annuitant. On the death of the last
surviving joint annuitant, a new annuitant will be determined as defined in
the Annuitant provision of the Certificate.
II. The Death of Owner or Annuitant provision is modified as follows:
The following paragraph replaces the first paragraph of this provision if
the Certificate is treated as an annuity contract under Section 72(u) of
the Internal Revenue Code.
A benefit may be paid to the owner determined immediately after the death
if, prior to the Payout Start Date:
o any owner dies; or
o the Primary Annuitant dies and the owner is not a natural person.
The following paragraph replaces the first paragraph of this provision if
the Certificate is not treated as an annuity contract under Section 72(u)
of the Internal Revenue Code.
Prior to the Payout Start Date, a benefit may be paid on the death of the
last surviving joint annuitant. Payment will be made to the owner
determined immediately after the death.
III. The following replaces the second paragraph of the Payout Start Date
provision:
The Payout Start Date must be on or before the later of:
o the youngest annuitant's 90th birthday; or
o the 10th anniversary of the Certificate's issue date.
Except as amended in this amendment, the Certificate remains unchanged.
Secretary Chief Executive Officer
AIM LIFETIME PLUS SM II VARIABLE ANNUITY
Issued by: Allstate Life Insurance Company of New York i PO Box 94039 i
Palatine, IL 60094-4038 Telephone 800-692-4682 i FAX 847-402-4361 Send overnight
mail to: Allstate Life Insurance Company of New York 3100 Sanders Road, Suite
M4A, Northbrook, IL 60062
Owner(s) Name ________________________ _ M _ F Birthdate / /
Address__________________________________________________
Street City State Zip
Soc. Sec. No.______________ Phone No. _______________
Name ________________________ __ M _ F Birthdate / /
Address__________________________________________________
Street City State Zip
Soc. Sec. No.______________ Phone No. _______________
Annuitant Leave blank if Annuitant is same as sole Owner, otherwise complete:
Name________________________ __ M __ F Birthdate / /
Address__________________________________________________
Street City State Zip
Soc. Sec. No. ______________ Relationship to Owner_________
Beneficiary(ies)
Name __________________ Relationship to Owner Percentage
Name __________________ Relationship to Owner Percentage
Purchase Payment/ Plan Options
Choose one of the following: Initial
Purchase Payment $
Base Contract, No Rider; or
Enhanced Death Benefit Rider
Please allocate the above amount in $ or % (circle one) to the Investment
Alternatives specified below:
AIM V.I. Funds*
Aggressive Growth Fund
Balanced Fund
Capital Appreciation Fund
Capital Development Fund
Diversified Income Fund
Global Utilities Fund
Government Securities Fund
Growth Fund
Growth and Income Fund
High Yield Fund
International Equity Fund
Money Market Fund
Value Fund
Fixed Account (if available)
1-Year Guarantee Period
3-Year Guarantee Period
5-Year Guarantee Period
7-Year Guarantee Period
10-Year Guarantee Period
DCA Options ______
(Please allocate DCA below.)
Total 100%
Dollar Cost Averaging (DCA) Options
6-month DCA Option. Money will be transferred in equal monthly installments for
______ (1-6) months. 12-month DCA Option. Money will be transferred in equal
monthly installments for ______(1-12) months.
Please allocate the DCA Option amount to the Investment Alternatives specified
below.
AIM V.I. Funds*
Aggressive Growth Fund %
Balanced Fund %
Capital Appreciation Fund %
Capital Development Fund %
Diversified Income Fund %
Global Utilities Fund %
Government Securities Fund %
Growth Fund %
Growth and Income Fund %
High Yield Fund %
International Equity Fund %
Money Market Fund %
Value Fund %
Total 100%
*Certain AIM V.I. Funds may not be available at the time of purchase.
Replacement Information
Will this annuity replace or change any existing annuity or life insurance?
__ Yes __ No (If Yes, complete the following.)
Company____________________ Policy No.______________
Cost Basis Amount _______________ Policy Date ___________
Tax Qualified Plan Yes No (If Yes, complete the following.)
Custodial IRA Roth IRA
IRA Rollover IRA/Year of Contribution IRA Transfer Other
17 NYLR325 12/99
<PAGE>
AIM LIFETIME PLUS SM II VARIABLE ANNUITY
Issued by: Allstate Life Insurance Company of New York i PO Box 94039 i
Palatine, IL 60094-4038 Telephone 800-692-4682 i FAX 847-402-4361 Send overnight
mail to: Allstate Life Insurance Company of New York i 3100 Sanders Road, Suite
M4A i Northbrook, IL 60062
Signature(s) I understand that if Allstate Life Insurance Company of New York
("Allstate") declines this application, Allstate will have no liability except
to return the purchase payments. I understand that any distribution from the
Fixed Account prior to the end of a Guarantee Period may be subject to a Market
Value Adjustment which may be negative or positive. I understand that annuity
values and income payments based on the investment experience of the Investment
Alternatives underlying the separate account are variable and are not guaranteed
as to dollar amount. I have received the current prospectus for this variable
annuity.
Signed at ______________________________________ Date / /
City State
Owner(s)________________________________________
Fax Number________________ E-mail Address__________________
Agent Use Only Will the annuity applied for replace or change any existing
annuity or life insurance? Yes No
Agent Name (Please print)_________ Phone No.______________
Agent Signature ________________ Soc. Sec. No. _____________
Fax Number __________________ E-mail Address______________
Agent GA No. (Joint Business) _______________ FL License No. _____
Clientis B/D Acct. No.____________ B/D Name _______________
Designation: __ A __ B
Note: Please be advised that a firm designation may override an
individual agent designation. If no designation is given, "A" will be
the designation.
18 NYLR325 12/99
<PAGE>
OPTIONAL PROGRAMS AUTHORIZATION
Contract # ______________________ Date ________________
Owner(s) Name ____________________
Owner(s) Signature ___________________
Soc. Sec. No.__________________ Phone No. ________________
Automatic Portfolio Rebalancing Program On a quarterly basis, please complete
a transfer between the Sub-accounts of the Variable Account to achieve the
following ending allocation within the Variable Account:
Aggressive Growth Fund* __% Growth Fund __%
Balanced Fund __% Growth and Income Fund __%
Capital Appreciation Fund __% High Yield Fund __%
Capital Development Fund __% International Equity Fund __%
Diversified Income Fund __% Money Market Fund __%
Global Utilities Fund __% Value Fund __%
Government Securities Fund __% Total 100%
None of the money allocated to the Fixed Account will be transferred as a result
of this rebalancing program.
Please begin the Rebalancing Program on / / .
Keep in effect until notified otherwise. Stop the Rebalancing Program on / / .
Dollar-Cost Averaging Program
On a monthly basis, please transfer either: interest only from the year
guarantee period (e.g., 3, 5, 7 or 10), or $ from the AIM V.I. Fund as indicated
. (Name of Fund)
Please allocate the above amount to the Investment Alternatives specified below:
Aggressive Growth Fund* % Growth Fund %
Balanced Fund % Growth and Income Fund %
Capital Appreciation Fund % High Yield Fund %
Capital Development Fund % International Equity Fund %
Diversified Income Fund % Money Market Fund%
Global Utilities Fund % Value Fund %
Government Securities Fund % Total 100 %
Please begin the Dollar-Cost Averaging Program on / / .
Keep in effect until notified otherwise. Stop the Dollar-Cost Averaging Program
on / / This agreement ends automatically when the account value in the option
selected above has been depleted.
3 Automatic Additions Program I authorize Glenbrook Life and Annuity Company
(Glenbrook) to begin automatic debits from the account designated below. The
funds withdrawn from this account shall be added to my variable annuity as an
Automatic Addition (Purchase Payment). (Minimum addition $100.)
The debit amount is $ . The debits should begin in . (Month)
Debit my (check one) Checking Account Savings Account on the (check one) day* of
each Month Quarter Financial Institution Address
ABA No. Acct. No.
*Please allow three business days for the payment to be credited to your
annuity.
A VOIDED BLANK CHECK FOR THE ABOVE ACCOUNT MUST BE ATTACHED
Aggressive Growth Fund* % High Yield Fund %
Balanced Fund % International Equity Fund %
Capital Appreciation Fund % Money Market Fund %
Capital Development Fund % Value Fund %
Diversified Income Fund % 1 Year Guarantee Period %
Global Utilities Fund % 3 Year Guarantee Period %
Government Securities Fund % 5 Year Guarantee Period %
Growth Fund % 7 Year Guarantee Period %
Growth and Income Fund % 10 Year Guarantee Period %
Total 100 %
Keep the Automatic Addition Program in effect until notified otherwise. Stop the
Automatic Addition Program on / / .
*All Funds may not be available for investment at all times.
Glenbrook Life and Annuity Company i PO Box 94039 Palatine, IL 60094-4039
Telephone 800-776-6978
19 GLMR73 6/98
<PAGE>
SYSTEMATIC WITHDRAWAL AUTHORIZATION
Contract # Date
Owner(s) Name
Owner(s) Signature
Soc. Sec. No. Phone No.
1 Systematic Withdrawal Program I authorize Glenbrook Life and Annuity
Company (Glenbrook) to begin systematic withdrawals in the net amount of $
from my annuity. This amount should be withdrawn on the day of each (check
one) month quarter, beginning in the month of (please allow three business
days for receipt of a direct deposit or seven business days for receipt of
a check). The account value will be reduced to reflect the amount received,
as well as applicable charges, adjustments and income tax withholding. I
understand that withdrawals may result in taxable income and, prior to
owneris age of 591/2, may be subject to a 10% penalty. Frequency of
payments:
Monthly Quarterly Semi-annually Annually
Specify percentage to be withdrawn from each Investment Alternative:
Aggressive Growth Fund* % High Yield Fund %
Balanced Fund % International Equity Fund %
Capital Appreciation Fund % Money Market Fund %
Capital Development Fund % Value Fund %
Diversified Income Fund % 1-Year Guarantee Period %
Global Utilities Fund % 3-Year Guarantee Period %
Government Securities Fund % 5-Year Guarantee Period %
Growth Fund % 7-Year Guarantee Period %
Growth and Income Fund % 10-Year Guarantee Period %
Total 100 %
I do want to have ________ % federal income tax withheld. If no percentage is
indicated, 10% will be withheld. I do not want to have federal income tax
withheld. Federal income tax will be withheld unless
this box is checked.
2 Direct Deposit Please deposit the above amount to: (check one) Checking
Account Savings Account Financial Institution Address ABA No. Acct. No. A
VOIDED BLANK CHECK FOR THE ABOVE ACCOUNT MUST BE ATTACHED
If, instead of a direct deposit, you wish to have a check mailed to you,
complete the following:
Payee's Name Acct. No.*
*if applicable
Address
Street City State Zip
3 Notice of Withholding The distributions you receive from Glenbrook Life and
Annuity Company are subject to federal income tax withholding unless you
elect not to have withholding apply. Withholding will only apply to the
portion of the distribution that is subject to federal income tax. CA, IA,
KS, MA, ME, OK, OR, VA and VT residents: If you choose to have federal
income tax withheld from your annuity payments, then the laws of your state
require that state income tax must also be withheld. If you elect not to
have withholding apply, or if you do not have enough federal income tax
withheld, you may be responsible for payment of estimated tax. You may
incur penalties under the estimated tax rules if your withholding and
estimated tax payments are not sufficient. An election not to have
withholding apply will remain in effect until revoked, which may be done at
any time. Even if you elect not to have withholding apply, you are liable
for the payment of federal income tax on the taxable portion of the
distribution. If the withholding section is left blank, or if a social
security number or tax identification number is not provided, 10% of the
taxable portion of the distribution will be withheld. The withholding rate
on withdrawals which are not distributions from a plan qualified under
Internal Revenue Code Sections 401 or 403(b) is 10% of the taxable portion
of the withdrawal. Distributions from a plan qualified under Internal
Revenue Code Section 401 or 403(b) may be subject to 20% withholding. If
you request such a distribution, you will receive a notice outlining the
applicable rules. *All Funds may not be available for investment at all
times.
Glenbrook Life and Annuity Company i PO Box 94039 i Palatine, IL 60094-4039 i
Telephone 800-776-6978 20
<PAGE>
ABSOLUTE ASSIGNMENT FOR 1035 EXCHANGES OF ANNUITIES
Required Information Owner Soc. Sec. No.
Joint Owner Soc. Sec. No.
Is there a limited period for a surrender free of charge?
If yes, state timeframe
Company where contract is currently in force
Companyis Address
Companyis Phone No.
Contract No.
FOR VALUE RECEIVED, WE, THE ABOVE OWNER(S) hereby assign and transfer to
Glenbrook Life and Annuity Company (iGlenbrooki), all right, title and interest
in the above-named contract/certificate (iassigned contract/certificatei) and
name Glenbrook as sole beneficiary under the assigned contract, hereby revoking
all prior beneficiary designations. By accepting this Absolute Assignment,
Glenbrook agrees to be the sole named beneficiary of the assigned
contract/certificate. The purpose of this Absolute Assignment is to qualify the
exchange of the assigned contract/certificate for a contract/certificate issued
by Glenbrook (inew contract/certificatei) as an exchange under Section 1035 of
the Internal Revenue Code. Glenbrook is participating in this exchange at my
specific request and as an accommodation to me. This Absolute Assignment form is
subject to the following terms and conditions: _ The assigned
contract/certificate is not subject to any prior assignments, proceedings in
bankruptcy, federal tax levy or collection proceedings resulting from an unpaid
assessment, or any other legal action. _ Glenbrook will then request a cash
surrender of the assigned contract/certificate before issuing the new
contract/certificate. Glenbrook will credit the new contract/certificate with
the cash surrender value upon receipt. Further, I understand and agree to the
following: _ The new contract/certificate will be issued at the rate(s) in
effect at the time Glenbrook receives the cash surrender value of the assigned
contract/certificate. _ For an exchange to a Glenbrook variable annuity
contract/certificate, allocation to the respective portfolios will occur upon
Glenbrookis receipt of the cash surrender value of the assigned
contract/certificate. _ Glenbrook assumes no responsibility or liability for the
validity of this Absolute Assignment nor for the tax treatment resulting from
the exchange of these contracts/certificates. I should seek the advice of a
competent tax advisor if I have questions concerning this exchange.
I certify that the above-referenced contract has been lost or destroyed
and I have no knowledge of its whereabouts. In addition, I hereby certify that
the policy has not been assigned or pledged as security.
Executed at Date / /
Owner(s) Owneris Spouse
(if community property*)
*In states with community property laws (AZ, CA, ID, LA, NV, NM, TX, WA and WI),
the spouse of the owner must sign this request.
Irrevocable Beneficiary
Acceptance of Absolute Assignment Glenbrook Life and Annuity Company hereby
accepts this Absolute
effective / / By
Authorized Signature
Glenbrook Life and Annuity Company _ PO Box 94039 _ Palatine, IL 60094-4039 _
Telephone 800-776-6978
21 GLMR74 6/98
<PAGE>
AUTHORIZATION TO TRANSFER FUNDS
1 Required Information To Current Trustee/Customer/Issuer
Address Phone No.
Is there a limited period for a surrender free of charge?
If yes, state timeframe
Account Number/Policy Number
Owner/Participant Soc. Sec. No.
Owner/Participantis Address
Street City State Zip
2 Check the Appropriate Box IRA Transfer
Please accept this as my authorization to transfer the Individual
Retirement Account referenced above to an Individual Retirement Annuity to be
established with Glenbrook Life and Annuity Company.
I hereby authorize the transfer of assets described above. If I am
701/2 years of age, I attest that none of the amount to be transferred will
include the required minimum distribution pursuant to Sections 401(a)(9) or
408(a)(6) of the Internal Revenue Code for the current year.
Roth IRA Transfer to Roth IRA Traditional IRA Transfer to Roth IRA
(conversion) 403(b) Transfer
The undersigned Employee desires to transfer all or part of the cash
surrender value of the above-referenced account to an annuity issued by
Glenbrook Life and Annuity Company, in accordance with Section 403(b) of the
Internal Revenue Code of 1986 as interpreted by the Internal Revenue Service in
Revenue Ruling 90-24. The Tax Reform Act of 1986 and Technical and Miscellaneous
Revenue Act of 1988 has made it imperative for financial institutions to obtain
the December 31, 1986 and December 31, 1988 value on all qualified 403(b)
accounts.
Please complete the information below showing these values and return this
information to us. Balance as of December 31, 1986 Balance as of December 31,
1988 Direct rollover from a qualified pension plan to an IRA (If yes, complete
the following) 401(k) Pension Profit Sharing Other TO BE COMPLETED FOR ALL
TRANSFERS Amount of transfer requested: Liquidate all assets and transfer
proceeds
Partial liquidation of $
Transfer proceeds to: A new Glenbrook annuity (attach application)
Please make the check payable to Glenbrook Life and send to the address shown
below. Check box that applies.
Enclosed is my certificate.
The certificate is held by the financial institution listed above. I certify
that the above referenced policy has been lost or destroyed and I have no
knowledge of its whereabouts. In addition, I hereby certify that the policy has
not been assigned or pledged as security.
Date / /
Owner/Participant's Signature
For Glenbrook Use Only Letter of Acceptance Please be advised that Glenbrook
Life and Annuity Company will accept the proceeds from your institution's
account referenced above to be applied to a:
Individual Retirement Annuity 403(b) contract Other
For Glenbrook Life and Annuity Company:
Date / /
Authorized Signature
Glenbrook Life and Annuity Company _ PO Box 94039 _ Palatine, IL 60094-4039 _
Telephone 800-776-6978 22
<PAGE>
SPECIAL SERVICES AUTHORIZATION
Contract # Date
Owner(s) Name
Owner(s) Signature
Soc. Sec. No. Phone No.
Investment Transfers Transfer from: Transfer to:
$ (or) % $ (or) %
$ (or) % $ (or) %
$ (or) % $ (or) %
$ (or) % $ (or) %
$ (or) % $ (or) %
Transfer of Ownership This change of ownership does not affect the present
beneficiary designation. If the new owner is a Trust, all requested Trust
information must be provided. As Owner of the above-designated Contract, I
request that all benefits, rights and privileges incident to ownership of this
Contract be vested in the new Owner named below, or to such new Owneris
executors, administrators and assigns, or successors and assigns. Please consult
your tax advisor to determine the potential tax consequences.
Name M F
Address
Street City State Zip
Soc. Sec. No. Phone No. Birthdate / /
Date / /
New Owner Signature Month Day Year
Relationship of new owner to old owner
If the new owner is a Trust, provide the following information: (Please Print)
Trustee(s) Name(s) Date of Trust / /
Month Day Year
Change Name, Address and/or Beneficiary Change for: Owner Annuitant
Beneficiary*
Name M F
Address
Street City State Zip
oc. Sec. No. Phone No. Birthdate / /
* I hereby cancel all prior Beneficiary designations and make the following
designations:
Name Relationship to Owner Percentage
Primary %
Primary %
Primary %
Contingent %
Contingent %
Unless otherwise directed, equal shares will be paid to the primary
beneficiaries surviving all owners. If no primary beneficiaries survive the
owners, payment will be made to the contingent beneficiaries.
Glenbrook Life and Annuity Company _ PO Box 94039 _ Palatine, IL 60094-4039 _
Telephone 800-776-6978
23 GLMR75 6/98
<PAGE>
WITHDRAWAL AUTHORIZATION
Contract # Date
Owner(s) Name
Owner(s) Signature
Soc. Sec. No. Phone No.
Withdrawal Authorization I hereby authorize Glenbrook Life and Annuity Company
to make a withdrawal of the amounts indicated below. I understand that
withdrawals may result in taxable income and, prior to owneris age of 591/2, may
be subject to a 10% penalty. Surrender Annuity. Please attach the original
contract.
Gross partial withdrawal. The check may differ from the requested amount due to
applicable charges, adjustments or income tax withholding. Gross Amount: $ . Net
partial withdrawal. The check amount will equal the requested amount. The
Account Value will be reduced to reflect the amount received, as well as
applicable charges, adjustments and income tax withholding. Net Amount: $
Specify percentage to be withdrawn from each Investment Alternative:
Aggressive Growth Fund* % High Yield Fund %
Balanced Fund % International Equity Fund %
Capital Appreciation Fund % Money Market Fund %
Capital Development Fund % Value Fund %
Diversified Income Fund % 1-Year Guarantee Period %
Global Utilities Fund % 3-Year Guarantee Period %
Government Securities Fund % 5-Year Guarantee Period %
Growth Fund % 7-Year Guarantee Period %
Growth and Income Fund % 10-Year Guarantee Period %
Total 100 %
I do want to have ________ % federal income tax withheld. If no percentage is
indicated, 10% will be withheld. I do not want to have federal income tax
withheld. Federal income tax will be withheld unless this box is checked. *All
Funds may not be available for investment at all times.
Direct Deposit Please deposit the above amount to: (check one)
Checking Account Savings Account
Financial Institution
Address
ABA No. Acct. No.
Please allow three business days for the payment to be credited to your account.
A VOIDED BLANK CHECK FOR THE ABOVE ACCOUNT MUST BE ATTACHED If, instead of a
direct deposit, you wish to have a check mailed to you, complete the following:
Payee's Name Acct. No.*
*if applicable
Address
Notice of Withholding The distributions you receive from Glenbrook Life and
Annuity Company are subject to federal income tax withholding unless you elect
not to have withholding apply. Withholding will only apply to the portion of the
distribution that is subject to federal income tax. CA, IA, KS, MA, ME, OK, OR,
VA and VT residents: If you choose to have federal income tax withheld from your
annuity payments, then the laws of your state require that state income tax must
also be withheld. If you elect not to have withholding apply, or if you do not
have enough federal income tax withheld, you may be responsible for payment of
estimated tax. You may incur penalties under the estimated tax rules if your
withholding and estimated tax payments are not sufficient. An election not to
have withholding apply will remain in effect until revoked, which may be done at
any time. Even if you elect not to have withholding apply, you are liable for
the payment of federal income tax on the taxable portion of the distribution. If
the withholding section is left blank, or if a social security number or tax
identification number is not provided, 10% of the taxable portion of the
distribution will be withheld. The withholding rate on withdrawals which are not
distributions from a plan qualified under Internal Revenue Code Sections 401 or
403(b) is 10% of the taxable portion of the withdrawal. Distributions from a
plan qualified under Internal Revenue Code Section 401 or 403(b) may be subject
to 20% withholding. If you request such a distribution, you will receive a
notice outlining the applicable rules.
Glenbrook Life and Annuity Company _ PO Box 94039 _ Palatine, IL 60094-4039 _
Telephone 800-776-6978 24
Exhibit 9(b)
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
LAW AND REGULATION DEPARTMENT
3100 Sanders Road, J5B
Northbrook, Illinois 60062
Direct Dial Number 847-402-2400
Facsimile 847-402-4371
Michael J. Velotta Please direct reply to:
Vice President, Secretary Post Office Box 3005
and General Counsel Northbrook, Illinois 60065-3005
November 8, 1999
TO: ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NORTHBROOK, ILLINOIS 60062
FROM: MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
RE: FORM N-4 REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OF 1933 AND THE INVESTMENT COMPANY ACT OF
1940
FILE NO. 033-65381, 811-07467
With reference to the Registration Statement on Form N-4 filed by Allstate
Life Insurance Company of New York (the "Company"), as depositor, and Allstate
Life of New York Separate Account A, as registrant, with the Securities and
Exchange Commission covering the Flexible Premium Deferred Variable Annuity
Contracts, I have examined such documents and such law as I have considered
necessary and appropriate, and on the basis of such examination, it is my
opinion that as of November 8, 1999:
1. The Company is duly organized and existing under the laws of the State of
New York and has been duly authorized to do business by the Director of
Insurance of the State of New York.
2. The securities registered by the above Registration Statement when issued
will be valid, legal and binding obligations of the Company.
I hereby consent to the filing of this opinion as an exhibit to the above
referenced Registration Statement and to the use of my name under the caption
"Legal Matters" in the Prospectus constituting a part of the Registration
Statement.
Sincerely,
/s/ MICHAEL J. VELOTTA
- -------------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
Exhibit (10)(a)
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 4 to Registration
Statement No. 033-65381 of Allstate Life of New York Separate Account A of
Allstate Life Insurance Company of New York on Form N-4 or our report dated
February 19, 1999 relating to the financial statements and the related financial
statement schedules of Allstate Life Insurance Company of New York, and our
report dated March 18, 1999 relating to the financial statements of Allstate
Life of New York Separate Account A, appearing in the Statement of Additional
Information (which is incorporated by reference in the Prospectus of Allstate
Life Insurance Company of New York), which is part of such Registration
Statement, and to the reference to us under the heading "Experts" in such
Statement of Additional Information.
/s/ DELOITTE & TOUCHE LLP
Chicago Illinois
November 9, 1999
Exhibit (10)(b)
Freedman, Levy, Kroll & Simonds
CONSENT OF
FREEDMAN, LEVY, KROLL & SIMONDS
We hereby consent to the reference to our firm under the caption "Legal
Matters" in the prospectus contained in Post-Effective Amendment No. 4 to the
Form N-4 Registration Statement of Allstate Life of New York Separate Account A
(File No. 033-65381).
/s/FREEDMAN, LEVY, KROLL & SIMONDS
Washington, D.C.
November 5, 1999
<TABLE>
<CAPTION>
AIM II Capital Appreciation
05-May-93
TO NO. YEARS 6.404
30-Sep-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 4.484376 222.99644
1 FEE 05-May-94 0.568228 5.293732 0.10734 0.07
2 FEE 05-May-95 0.568228 5.908431 0.09617 0.07
3 FEE 05-May-96 0.568228 8.003560 0.07100 0.06
4 FEE 05-May-97 0.568228 8.399912 0.06765 0.06
5 FEE 05-May-98 0.568228 10.614237 0.05353 0.05
6 FEE 05-May-99 0.568228 11.324088 0.05018 0.04
7 FEE 30-Sep-99 0.568228 11.628462 0.04887 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.628462 222.50171 2587.3527
6.404
FORMULA: 1000*(1+T)= 2587.3527
= 2521.375165
T = 15.54% 16.00%
R = 152.14%
AIM II Growth
05-May-93
TO NO. YEARS 6.404
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 4.349521 229.91037
1 FEE 05-May-94 0.568228 4.574899 0.12421 0.07
2 FEE 05-May-95 0.568228 5.119641 0.11099 0.07
3 FEE 05-May-96 0.568228 6.472065 0.08780 0.06
4 FEE 05-May-97 0.568228 7.628777 0.07448 0.06
5 FEE 05-May-98 0.568228 10.283210 0.05526 0.05
6 FEE 05-May-99 0.568228 12.601930 0.04509 0.04
7 FEE 30-Sep-99 0.568228 12.908232 0.04402 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 12.908232 229.36852 2960.7421
6.404
FORMULA: 1000*(1+T)= 2960.7421
= 2885.243164
T = 17.99% 18.47%
R = 188.52%
AIM II International Equity
05-May-93
TO NO. YEARS 6.404
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 5.114631 195.51753
1 FEE 05-May-94 0.568228 5.937139 0.09571 0.07
2 FEE 05-May-95 0.568228 6.144297 0.09248 0.07
3 FEE 05-May-96 0.568228 7.368763 0.07711 0.06
4 FEE 05-May-97 0.568228 8.145883 0.06976 0.06
5 FEE 05-May-98 0.568228 9.985348 0.05691 0.05
6 FEE 05-May-99 0.568228 9.810856 0.05792 0.04
7 FEE 30-Sep-99 0.568228 10.456775 0.05434 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 10.456775 195.01331 2039.2103
6.404
FORMULA: 1000*(1+T)= 2039.2103
= 1987.210432
T = 11.32% 11.77%
R = 98.72%
AIM II Value
05-May-93
TO NO. YEARS 6.404
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 4.118831 242.78735
1 FEE 05-May-94 0.568228 4.790433 0.11862 0.07
2 FEE 05-May-95 0.568228 5.422038 0.10480 0.07
3 FEE 05-May-96 0.568228 6.539665 0.08689 0.06
4 FEE 05-May-97 0.568228 7.877127 0.07214 0.06
5 FEE 05-May-98 0.568228 10.143006 0.05602 0.05
6 FEE 05-May-99 0.568228 12.766656 0.04451 0.04
7 FEE 30-Sep-99 0.568228 12.819036 0.04433 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 12.819036 242.26005 3105.5403
6.404
FORMULA: 1000*(1+T)= 3105.5403
= 3026.349057
T = 18.88% 19.36%
R = 202.63%
AIM II Growth & Income
02-May-94
TO NO. YEARS 5.413
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 4.811543 207.83355
1 FEE 02-May-95 0.568228 5.319832 0.10681 0.07
2 FEE 02-May-96 0.568228 6.645922 0.08550 0.07
3 FEE 02-May-97 0.568228 7.903839 0.07189 0.06
4 FEE 02-May-98 0.568228 10.392545 0.05468 0.06
5 FEE 02-May-99 0.568228 12.756229 0.04455 0.05
6 FEE 30-Sep-99 0.568228 12.584663 0.04515 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 12.584663 207.42497 2610.3734
5.413
FORMULA: 1000*(1+T)= 2610.3734
= 2521.620709
T = 18.63% 19.39%
R = 152.16%
AIM II Global Utilities
02-May-94
TO NO. YEARS 5.413
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 5.868337 170.40604
1 FEE 02-May-95 0.568228 5.960776 0.09533 0.07
2 FEE 02-May-96 0.568228 7.016536 0.08098 0.07
3 FEE 02-May-97 0.568228 7.893767 0.07198 0.06
4 FEE 02-May-98 0.568228 10.280845 0.05527 0.06
5 FEE 02-May-99 0.568228 11.078820 0.05129 0.05
6 FEE 30-Sep-99 0.568228 11.338697 0.05011 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.338697 170.00106 1927.5906
5.413
FORMULA: 1000*(1+T)= 1927.5906
= 1862.052482
T = 12.17% 12.89%
R = 86.21%
AIM II Diversified Income
05-May-93
TO NO. YEARS 6.404
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 7.093982 140.96455
1 FEE 05-May-94 0.568228 7.088417 0.08016 0.07
2 FEE 05-May-95 0.568228 7.586102 0.07490 0.07
3 FEE 05-May-96 0.568228 8.118448 0.06999 0.06
4 FEE 05-May-97 0.568228 8.918139 0.06372 0.06
5 FEE 05-May-98 0.568228 9.941935 0.05715 0.05
6 FEE 05-May-99 0.568228 9.871170 0.05756 0.04
7 FEE 30-Sep-99 0.568228 9.551444 0.05949 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 9.551444 140.50156 1341.9928
6.404
FORMULA: 1000*(1+T)= 1341.9928
= 1307.771976
T = 4.28% 4.70%
R = 30.78%
AIM II Government Securities
05-May-93
TO NO. YEARS 6.404
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 8.152216 122.66604
1 FEE 05-May-94 0.568228 7.997611 0.07105 0.07
2 FEE 05-May-95 0.568228 8.468850 0.06710 0.07
3 FEE 05-May-96 0.568228 8.721702 0.06515 0.06
4 FEE 05-May-97 0.568228 9.221397 0.06162 0.06
5 FEE 05-May-98 0.568228 9.918722 0.05729 0.05
6 FEE 05-May-99 0.568228 10.288756 0.05523 0.04
7 FEE 30-Sep-99 0.568228 10.160952 0.05592 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 10.160952 122.23268 1242.0004
6.404
FORMULA: 1000*(1+T)= 1242.0004
= 1210.329391
T = 3.03% 3.44%
R = 21.03%
AIM II Money Market
05-May-93
TO NO. YEARS 6.404
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 8.531295 117.21550
1 FEE 05-May-94 0.568228 8.620292 0.06592 0.07
2 FEE 05-May-95 0.568228 8.914363 0.06374 0.07
3 FEE 05-May-96 0.568228 9.273982 0.06127 0.06
4 FEE 05-May-97 0.568228 9.602139 0.05918 0.06
5 FEE 05-May-98 0.568228 9.971369 0.05699 0.05
6 FEE 05-May-99 0.568228 10.316844 0.05508 0.04
7 FEE 30-Sep-99 0.568228 10.451695 0.05437 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 10.451695 116.79896 1220.7471
6.404
FORMULA: 1000*(1+T)= 1220.7471
= 1189.618023
T = 2.75% 3.16%
R = 18.96%
AIM II Balanced
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.071847 99.28666
1 FEE 01-May-99 0.568228 11.761469 0.04831 0.07
2 FEE 30-Sep-99 0.568228 11.526976 0.04930 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.526976 99.18905 1143.3498
1.415
FORMULA: 1000*(1+T)= 1143.3498
= 1075.320472
T = 5.26% 9.93%
R = 7.53%
AIM II High Yield
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 9.932022 100.68443
1 FEE 01-May-99 0.568228 9.724845 0.05843 0.07
2 FEE 30-Sep-99 0.568228 9.468372 0.06001 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 9.468372 100.56598 952.1962
1.415
FORMULA: 1000*(1+T)= 952.1962
= 895.5404806
T = -7.50% -3.40%
R = -10.45%
AIM II Capital Development
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.799859 92.59380
1 FEE 01-May-99 0.568228 9.367745 0.06066 0.07
2 FEE 30-Sep-99 0.568228 9.764059 0.05820 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 9.764059 92.47495 902.9309
1.415
FORMULA: 1000*(1+T)= 902.9309
= 849.2064918
T = -10.91% -6.96%
R = -15.08%
AIM II Aggressive Growth
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.741918 93.09325
1 FEE 01-May-99 0.568228 10.364913 0.05482 0.07
2 FEE 30-Sep-99 0.568228 11.666161 0.04871 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.666161 92.98972 1084.8330
1.415
FORMULA: 1000*(1+T)= 1084.8330
= 1020.285464
T = 1.43% 5.92%
R = 2.03%
<PAGE>
1yr ago: 9/30/98
Date: 9/30/99
AIM II MM
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 10.124174 98.77349
1 FEE 30-Sep-99 0.568228 10.451695 0.05437 0.07
RESULTING VALUE 30-Sep-99 10.451695 98.71912 1031.7822
1.000
FORMULA: 1000*(1+T)= 1031.7822
= 1031.782164
T = 3.18% 3.18%
R = 3.18%
AIM II GOV
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 10.438452 95.79965
1 FEE 30-Sep-99 0.568228 10.160952 0.05592 0.07
RESULTING VALUE 30-Sep-99 10.160952 95.74372 972.8474
1.000
FORMULA: 1000*(1+T)= 972.8474
= 972.8473705
T = -2.72% -2.72%
R = -2.72%
AIM II DINC
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.838907 101.63731
1 FEE 30-Sep-99 0.568228 9.551444 0.05949 0.07
RESULTING VALUE 30-Sep-99 9.551444 101.57781 970.2148
1.000
FORMULA: 1000*(1+T)= 970.2148
= 970.2148072
T = -2.98% -2.98%
R = -2.98%
AIM II GUTL
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.652849 103.59636
1 FEE 30-Sep-99 0.568228 11.338697 0.05011 0.07
RESULTING VALUE 30-Sep-99 11.338697 103.54624 1174.0795
1.000
FORMULA: 1000*(1+T)= 1174.0795
= 1104.221756
T = 10.42% 17.41%
R = 10.42%
AIM II GI
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.257565 108.01977
1 FEE 30-Sep-99 0.568228 12.584663 0.04515 0.07
RESULTING VALUE 30-Sep-99 12.584663 107.97461 1358.8241
1.000
FORMULA: 1000*(1+T)= 1358.8241
= 1277.974083
T = 27.80% 35.88%
R = 27.80%
AIM II VALUE
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.265934 107.92220
1 FEE 30-Sep-99 0.568228 12.819036 0.04433 0.07
RESULTING VALUE 30-Sep-99 12.819036 107.87788 1382.8904
1.000
FORMULA: 1000*(1+T)= 1382.8904
= 1300.608387
T = 30.06% 38.29%
R = 30.06%
AIM II INTL
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.595040 116.34617
1 FEE 30-Sep-99 0.568228 10.456775 0.05434 0.07
RESULTING VALUE 30-Sep-99 10.456775 116.29183 1216.0375
1.000
FORMULA: 1000*(1+T)= 1216.0375
= 1143.68328
T = 14.37% 21.60%
R = 14.37%
AIM II GROW
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.271255 107.86026
1 FEE 30-Sep-99 0.568228 12.908232 0.04402 0.07
RESULTING VALUE 30-Sep-99 12.908232 107.81624 1391.7171
1.000
FORMULA: 1000*(1+T)= 1391.7171
= 1308.909901
T = 30.89% 39.17%
R = 30.89%
AIM II CAP
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.917271 112.14193
1 FEE 30-Sep-99 0.568228 11.628462 0.04887 0.07
RESULTING VALUE 30-Sep-99 11.628462 112.09307 1303.4700
1.000
FORMULA: 1000*(1+T)= 1303.4700
= 1225.913506
T = 22.59% 30.35%
R = 22.59%
AIM II BALANCED
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 10.047527 99.52698
1 FEE 30-Sep-99 0.568228 11.526976 0.04930 0.07
RESULTING VALUE 30-Sep-99 11.526976 99.47768 1146.6769
1.000
FORMULA: 1000*(1+T)= 1146.6769
= 1078.449587
T = 7.84% 14.67%
R = 7.84%
AIM II HIGH YIELD
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.009936 110.98858
1 FEE 30-Sep-99 0.568228 9.468372 0.06001 0.07
RESULTING VALUE 30-Sep-99 9.468372 110.92857 1050.3129
1.000
FORMULA: 1000*(1+T)= 1050.3129
= 987.8193131
T = -1.22% 5.03%
R = -1.22%
AIM II CAPITAL DEVELOPMENT
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.335329 119.97127
1 FEE 30-Sep-99 0.568228 9.764059 0.05820 0.07
RESULTING VALUE 30-Sep-99 9.764059 119.91307 1170.8383
1.000
FORMULA: 1000*(1+T)= 1170.8383
= 1101.173443
T = 10.12% 17.08%
R = 10.12%
AIM II AGGRESSIVE GROWTH
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.643194 115.69797
1 FEE 30-Sep-99 0.568228 11.666161 0.04871 0.07
RESULTING VALUE 30-Sep-99 11.666161 115.64926 1349.1829
1.000
FORMULA: 1000*(1+T)= 1349.1829
= 1268.906534
T = 26.89% 34.92%
R = 26.89%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
3 yr ago: 9/30/96
2 yr ago: 9/30/97
1 yr ago: 9/30/98
Date: 9/30/99
AIM II MM
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 9.400909 106.37270
1 FEE 30-Sep-97 0.568228 9.749594 0.05828 0.07
2 FEE 30-Sep-98 0.568228 10.124174 0.05613 0.07
3 FEE 30-Sep-99 0.568228 10.451695 0.05437 0.06
RESULTING VALUE 30-Sep-99 10.451695 106.20392 1110.0110
3.000
FORMULA: 1000*(1+T)= 1110.0110
= 1053.400434
T = 1.75% 3.54%
R = 5.34%
AIM II GOV
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 8.966903 111.52122
1 FEE 30-Sep-97 0.568228 9.568164 0.05939 0.07
2 FEE 30-Sep-98 0.568228 10.438452 0.05444 0.07
3 FEE 30-Sep-99 0.568228 10.160952 0.05592 0.06
RESULTING VALUE 30-Sep-99 10.160952 111.35147 1131.4370
3.000
FORMULA: 1000*(1+T)= 1131.4370
= 1073.733704
T = 2.40% 4.20%
R = 7.37%
AIM II DINC
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 8.538862 117.11162
1 FEE 30-Sep-97 0.568228 9.496379 0.05984 0.07
2 FEE 30-Sep-98 0.568228 9.838907 0.05775 0.07
3 FEE 30-Sep-99 0.568228 9.551444 0.05949 0.06
RESULTING VALUE 30-Sep-99 9.551444 116.93454 1116.8937
3.000
FORMULA: 1000*(1+T)= 1116.8937
= 1059.932127
T = 1.96% 3.75%
R = 5.99%
AIM II GUTL
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 7.195391 138.97785
1 FEE 30-Sep-97 0.568228 8.844477 0.06425 0.07
2 FEE 30-Sep-98 0.568228 9.652849 0.05887 0.07
3 FEE 30-Sep-99 0.568228 11.338697 0.05011 0.06
RESULTING VALUE 30-Sep-99 11.338697 138.80463 1573.8636
3.000
FORMULA: 1000*(1+T)= 1573.8636
= 1493.596572
T = 14.31% 16.32%
R = 49.36%
AIM II GI
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 7.068123 141.48028
1 FEE 30-Sep-97 0.568228 9.498739 0.05982 0.07
2 FEE 30-Sep-98 0.568228 9.257565 0.06138 0.07
3 FEE 30-Sep-99 0.568228 12.584663 0.04515 0.06
RESULTING VALUE 30-Sep-99 12.584663 141.31393 1778.3882
3.000
FORMULA: 1000*(1+T)= 1778.3882
= 1687.690366
T = 19.06% 21.16%
R = 68.77%
AIM II VALUE
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 6.875142 145.45153
1 FEE 30-Sep-97 0.568228 9.147978 0.06212 0.07
2 FEE 30-Sep-98 0.568228 9.265934 0.06132 0.07
3 FEE 30-Sep-99 0.568228 12.819036 0.04433 0.06
RESULTING VALUE 30-Sep-99 12.819036 145.28377 1862.3978
3.000
FORMULA: 1000*(1+T)= 1862.3978
= 1767.415539
T = 20.91% 23.03%
R = 76.74%
AIM II INTL
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 7.599800 131.58241
1 FEE 30-Sep-97 0.568228 9.191921 0.06182 0.07
2 FEE 30-Sep-98 0.568228 8.595040 0.06611 0.07
3 FEE 30-Sep-99 0.568228 10.456775 0.05434 0.06
RESULTING VALUE 30-Sep-99 10.456775 131.40014 1374.0217
3.000
FORMULA: 1000*(1+T)= 1374.0217
= 1303.946585
T = 9.25% 11.17%
R = 30.39%
AIM II GROW
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 6.865158 145.66308
1 FEE 30-Sep-97 0.568228 9.082179 0.06257 0.07
2 FEE 30-Sep-98 0.568228 9.271255 0.06129 0.07
3 FEE 30-Sep-99 0.568228 12.908232 0.04402 0.06
RESULTING VALUE 30-Sep-99 12.908232 145.49520 1878.0858
3.000
FORMULA: 1000*(1+T)= 1878.0858
= 1782.303443
T = 21.24% 23.38%
R = 78.23%
AIM II CAP
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 8.297001 120.52547
1 FEE 30-Sep-97 0.568228 10.238252 0.05550 0.07
2 FEE 30-Sep-98 0.568228 8.917271 0.06372 0.07
3 FEE 30-Sep-99 0.568228 11.628462 0.04887 0.06
RESULTING VALUE 30-Sep-99 11.628462 120.35739 1399.5713
3.000
FORMULA: 1000*(1+T)= 1399.5713
= 1328.193162
T = 9.92% 11.86%
R = 32.82%
AIM II Balanced
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 10.047527 0.05655 0.07
3 FEE 30-Sep-99 0.568228 11.526976 0.04930 0.06
RESULTING VALUE 30-Sep-99 11.526976 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II High Yield
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 9.009936 0.06307 0.07
3 FEE 30-Sep-99 0.568228 9.468372 0.06001 0.06
RESULTING VALUE 30-Sep-99 9.468372 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Capital Development
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 8.335329 0.06817 0.07
3 FEE 30-Sep-99 0.568228 9.764059 0.05820 0.06
RESULTING VALUE 30-Sep-99 9.764059 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Aggressive Growth
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 8.643194 0.06574 0.07
3 FEE 30-Sep-99 0.568228 11.666161 0.04871 0.06
RESULTING VALUE 30-Sep-99 11.666161 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
<PAGE>
5 Yr Ago: 9/29/94
4 yr Ago: 9/30/95
3 yr ago: 9/30/96
2 yr ago: 9/30/97
1 yr ago: 9/30/98
Date: 9/30/99
AIM II MM
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 8.705270 114.87294
1 FEE 30-Sep-95 0.568228 9.074865 0.06262 0.07
2 FEE 30-Sep-96 0.568228 9.400909 0.06044 0.07
3 FEE 30-Sep-97 0.568228 9.749594 0.05828 0.06
4 FEE 30-Sep-98 0.568228 10.124174 0.05613 0.06
5 FEE 30-Sep-99 0.568228 10.451695 0.05437 0.05
RESULTING VALUE 30-Sep-99 10.451695 114.70416 1198.8529
5.000
FORMULA: 1000*(1+T)= 1198.8529
= 1147.901696
T = 2.80% 3.69%
R = 14.79%
AIM II GOV
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 7.971148 125.45244
1 FEE 30-Sep-95 0.568228 8.752663 0.06492 0.07
2 FEE 31-Aug-95 0.568228 8.692579 0.06537 0.07
3 FEE 30-Sep-97 0.568228 9.568164 0.05939 0.06
4 FEE 30-Sep-98 0.568228 10.438452 0.05444 0.06
5 FEE 30-Sep-99 0.568228 10.160952 0.05592 0.05
RESULTING VALUE 30-Sep-99 10.160952 125.28270 1272.9915
5.000
FORMULA: 1000*(1+T)= 1272.9915
= 1218.889345
T = 4.04% 4.95%
R = 21.89%
AIM II DINC
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 7.088094 141.08164
1 FEE 30-Sep-95 0.568228 7.950657 0.07147 0.07
2 FEE 31-Aug-95 0.568228 7.826606 0.07260 0.07
3 FEE 30-Sep-97 0.568228 9.496379 0.05984 0.06
4 FEE 30-Sep-98 0.568228 9.838907 0.05775 0.06
5 FEE 30-Sep-99 0.568228 9.551444 0.05949 0.05
RESULTING VALUE 30-Sep-99 9.551444 140.90456 1345.8420
5.000
FORMULA: 1000*(1+T)= 1345.8420
= 1288.643727
T = 5.20% 6.12%
R = 28.86%
AIM II GUTL
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 5.713972 175.00959
1 FEE 30-Sep-95 0.568228 6.662733 0.08528 0.07
2 FEE 31-Aug-95 0.568228 6.400912 0.08877 0.07
3 FEE 30-Sep-97 0.568228 8.844477 0.06425 0.06
4 FEE 30-Sep-98 0.568228 9.652849 0.05887 0.06
5 FEE 30-Sep-99 0.568228 11.338697 0.05011 0.05
RESULTING VALUE 30-Sep-99 11.338697 174.83637 1982.4166
5.000
FORMULA: 1000*(1+T)= 1982.4166
= 1898.163879
T = 13.68% 14.67%
R = 89.82%
AIM II GI
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 4.869015 205.38033
1 FEE 30-Sep-95 0.568228 6.282811 0.09044 0.07
2 FEE 31-Aug-95 0.568228 6.016044 0.09445 0.07
3 FEE 30-Sep-97 0.568228 9.498739 0.05982 0.06
4 FEE 30-Sep-98 0.568228 9.257565 0.06138 0.06
5 FEE 30-Sep-99 0.568228 12.584663 0.04515 0.05
RESULTING VALUE 30-Sep-99 12.584663 205.21398 2582.5488
5.000
FORMULA: 1000*(1+T)= 2582.5488
= 2472.790459
T = 19.85% 20.90%
R = 147.28%
AIM II VALUE
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 4.854563 205.99177
1 FEE 30-Sep-95 0.568228 6.595098 0.08616 0.07
2 FEE 31-Aug-95 0.568228 6.359766 0.08935 0.07
3 FEE 30-Sep-97 0.568228 9.147978 0.06212 0.06
4 FEE 30-Sep-98 0.568228 9.265934 0.06132 0.06
5 FEE 30-Sep-99 0.568228 12.819036 0.04433 0.05
RESULTING VALUE 30-Sep-99 12.819036 205.82400 2638.4653
5.000
FORMULA: 1000*(1+T)= 2638.4653
= 2526.330515
T = 20.36% 21.41%
R = 152.63%
AIM II INTL
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 6.086935 164.28629
1 FEE 30-Sep-95 0.568228 6.609169 0.08598 0.07
2 FEE 31-Aug-95 0.568228 6.496612 0.08747 0.07
3 FEE 30-Sep-97 0.568228 9.191921 0.06182 0.06
4 FEE 30-Sep-98 0.568228 8.595040 0.06611 0.06
5 FEE 30-Sep-99 0.568228 10.456775 0.05434 0.05
RESULTING VALUE 30-Sep-99 10.456775 164.10402 1715.9988
5.000
FORMULA: 1000*(1+T)= 1715.9988
= 1643.068841
T = 10.44% 11.40%
R = 64.31%
AIM II GROW
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 4.632272 215.87677
1 FEE 30-Sep-95 0.568228 6.221906 0.09133 0.07
2 FEE 31-Aug-95 0.568228 6.007391 0.09459 0.07
3 FEE 30-Sep-97 0.568228 9.082179 0.06257 0.06
4 FEE 30-Sep-98 0.568228 9.271255 0.06129 0.06
5 FEE 30-Sep-99 0.568228 12.908232 0.04402 0.05
RESULTING VALUE 30-Sep-99 12.908232 215.70889 2784.4204
5.000
FORMULA: 1000*(1+T)= 2784.4204
= 2666.082568
T = 21.67% 22.73%
R = 166.61%
AIM II CAP
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 5.363029 186.46178
1 FEE 30-Sep-95 0.568228 7.500881 0.07575 0.07
2 FEE 31-Aug-95 0.568228 7.255259 0.07832 0.07
3 FEE 30-Sep-97 0.568228 10.238252 0.05550 0.06
4 FEE 30-Sep-98 0.568228 8.917271 0.06372 0.06
5 FEE 30-Sep-99 0.568228 11.628462 0.04887 0.05
RESULTING VALUE 30-Sep-99 11.628462 186.29369 2166.3091
5.000
FORMULA: 1000*(1+T)= 2166.3091
= 2074.24095
T = 15.71% 16.72%
R = 107.42%
AIM II Balanced
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 10.047527 0.05655 0.06
5 FEE 30-Sep-99 0.568228 11.526976 0.04930 0.05
RESULTING VALUE 30-Sep-99 11.526976 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II High Yield
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 9.009936 0.06307 0.06
5 FEE 30-Sep-99 0.568228 9.468372 0.06001 0.05
RESULTING VALUE 30-Sep-99 9.468372 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Cap Dev
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 8.335329 0.06817 0.06
5 FEE 30-Sep-99 0.568228 9.764059 0.05820 0.05
RESULTING VALUE 30-Sep-99 9.764059 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Aggr Gro
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 8.643194 0.06574 0.06
5 FEE 30-Sep-99 0.568228 11.666161 0.04871 0.05
RESULTING VALUE 30-Sep-99 11.666161 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Today 9/30/99 8/31/99 12/31/98 9/30/98 9/30/97 9/30/96 9/30/95 9/29/94
One Month Ago 8/31/99
End of last year12/31/98
One year Ago 9/30/98
Two Years Ago 9/30/97
Three Years ago 9/30/96
Four Years Ago 9/30/95
Five Years Ago 9/29/94
AUVS
Today One Month AgoEnd of last yOne year Ago Two Years AgoThree Years agoInception Five Yeas Ago
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AIM II CAP 11.628462 11.562815 11.024559 8.917271 10.2382523 8.297001133 4.484376471 5.363029437
AIM II GROW 12.908232 12.813426 11.810358 9.271255 9.082179441 6.865157749 4.349521124 4.632272426
AIM II INTL 10.456775 10.243333 9.662521 8.59504 9.191921026 7.599800046 5.114630856 6.086935276
AIM II VALUE 12.819036 12.797279 11.732887 9.265934 9.147977837 6.875142408 4.118830691 4.854562918
AIM II G&I 12.584663 12.758897 11.670696 9.257565 9.498739217 7.068122764 4.811542587 4.869015362
AIM II GUTL 11.338697 11.363145 10.790582 9.652849 8.844476711 7.195390962 5.86833676 5.713972475
AIM II DINC 9.551444 9.490169 9.861124 9.838907 9.496379127 8.538862303 7.093982328 7.088094498
AIM II GOV 10.160952 10.070374 10.693359 10.438452 9.568164065 8.966903265 8.15221573 7.971147994
AIM II MM 10.451695 10.422399 10.20914 10.124174 9.749594127 9.400908619 8.531295181 8.705270366
AIM II BAL 11.526976 11.52926 11.285018 10.047527 #N/A #N/A 10.07184683 #N/A
AIM II HY 9.468372 9.590608 9.087942 9.009936 #N/A #N/A 9.932022429 #N/A
AIM II CAPD 9.764059 9.507995 9.902477 8.335329 #N/A #N/A 10.79985859 #N/A
AIM II AGG 11.666161 11.328244 10.548526 8.643194 #N/A #N/A 10.74191757 #N/A
Returns
MTD YTD One Year Three Year Tot3 Yr. AVG Inception Tot. Inception AVFive Year Avg
--- --- -------- ----------------------- -------------- -------------------------
AIM II CAP 0.57% 5.48% 30.40% 40.15% 11.91% 159.31% 16.04% 10.70%
AIM II GROW 0.74% 9.30% 39.23% 88.03% 23.43% 196.77% 18.51% 14.89%
AIM II INTL 2.08% 8.22% 21.66% 37.59% 11.22% 104.45% 11.81% 7.14%
AIM II VALUE 0.17% 9.26% 38.35% 86.45% 23.08% 211.23% 19.40% 13.80%
AIM II G&I -1.37% 7.83% 35.94% 78.05% 21.20% 161.55% 19.44% 13.71%
AIM II GUTL -0.22% 5.08% 17.46% 57.58% 16.37% 93.22% 12.94% 11.06%
AIM II DINC 0.65% -3.14% -2.92% 11.86% 3.81% 34.64% 4.75% 6.78%
AIM II GOV 0.90% -4.98% -2.66% 13.32% 4.26% 24.64% 3.50% 5.54%
AIM II MM 0.28% 2.38% 3.24% 11.18% 3.60% 22.51% 3.22% 3.07%
AIM II BAL -0.02% 2.14% 14.72% #N/A #N/A 14.45% 10.00% #N/A
AIM II HY -1.27% 4.19% 5.09% #N/A #N/A -4.67% -3.32% #N/A
AIM II CAPD 2.69% -1.40% 17.14% #N/A #N/A -9.59% -6.88% #N/A
AIM II AGG 2.98% 10.60% 34.98% #N/A #N/A 8.60% 6.00% #N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
AIM II Capital Appreciation
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 8.403193 119.00238
1 FEE 14-Oct-97 0.568228 10.420013 0.05453 0.07
2 FEE 14-Oct-98 0.568228 8.228651 0.06905 0.07
3 FEE 30-Sep-99 0.568228 11.659396 0.04874 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.659396 118.83006 1385.4867
2.960
FORMULA: 1000*(1+T)= 1385.4867
= 1314.826854
T = 9.69% 11.65%
R = 31.48%
AIM II Growth
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 6.981368 143.23840
1 FEE 14-Oct-97 0.568228 9.278535 0.06124 0.07
2 FEE 14-Oct-98 0.568228 8.787697 0.06466 0.07
3 FEE 30-Sep-99 0.568228 12.942547 0.04390 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 12.942547 143.06859 1851.6720
2.960
FORMULA: 1000*(1+T)= 1851.6720
= 1757.236684
T = 20.98% 23.14%
R = 75.72%
AIM II International Equity
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 7.590858 131.73741
1 FEE 14-Oct-97 0.568228 9.258221 0.06138 0.07
2 FEE 14-Oct-98 0.568228 8.469635 0.06709 0.07
3 FEE 30-Sep-99 0.568228 10.484581 0.05420 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 10.484581 131.55475 1379.2964
2.960
FORMULA: 1000*(1+T)= 1379.2964
= 1308.952316
T = 9.52% 11.48%
R = 30.90%
AIM II Value
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 6.972297 143.42476
1 FEE 14-Oct-97 0.568228 9.385530 0.06054 0.07
2 FEE 14-Oct-98 0.568228 8.969271 0.06335 0.07
3 FEE 30-Sep-99 0.568228 12.853109 0.04421 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 12.853109 143.25666 1841.2935
2.960
FORMULA: 1000*(1+T)= 1841.2935
= 1747.387485
T = 20.75% 22.91%
R = 74.74%
AIM II Growth & Income
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 7.178907 139.29697
1 FEE 14-Oct-97 0.568228 9.697953 0.05859 0.07
2 FEE 14-Oct-98 0.568228 8.924356 0.06367 0.07
3 FEE 30-Sep-99 0.568228 12.618134 0.04503 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 12.618134 139.12967 1755.5569
2.960
FORMULA: 1000*(1+T)= 1755.5569
= 1666.02348
T = 18.82% 20.94%
R = 66.60%
AIM II Global Utilities
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 7.282180 137.32151
1 FEE 14-Oct-97 0.568228 8.939721 0.06356 0.07
2 FEE 14-Oct-98 0.568228 9.545467 0.05953 0.07
3 FEE 30-Sep-99 0.568228 11.368869 0.04998 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.368869 137.14844 1559.2227
2.960
FORMULA: 1000*(1+T)= 1559.2227
= 1479.702317
T = 14.16% 16.19%
R = 47.97%
AIM II Diversified Income
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 8.604034 116.22455
1 FEE 14-Oct-97 0.568228 9.539480 0.05957 0.07
2 FEE 14-Oct-98 0.568228 9.638138 0.05896 0.07
3 FEE 30-Sep-99 0.568228 9.576869 0.05933 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 9.576869 116.04669 1111.3640
2.960
FORMULA: 1000*(1+T)= 1111.3640
= 1054.684412
T = 1.82% 3.63%
R = 5.47%
AIM II Government Securities
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 9.003654 111.06602
1 FEE 14-Oct-97 0.568228 9.578827 0.05932 0.07
2 FEE 14-Oct-98 0.568228 10.377358 0.05476 0.07
3 FEE 30-Sep-99 0.568228 10.188007 0.05577 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 10.188007 110.89617 1129.8109
2.960
FORMULA: 1000*(1+T)= 1129.8109
= 1072.190574
T = 2.38% 4.21%
R = 7.22%
AIM II Money Market
14-Oct-96
TO NO. YEARS 2.960
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 9.382945 106.57634
1 FEE 14-Oct-97 0.568228 9.751189 0.05827 0.07
2 FEE 14-Oct-98 0.568228 10.145212 0.05601 0.07
3 FEE 30-Sep-99 0.568228 10.479499 0.05422 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 10.479499 106.40784 1115.1008
2.960
FORMULA: 1000*(1+T)= 1115.1008
= 1058.23069
T = 1.93% 3.75%
R = 5.82%
AIM II Balanced
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.070079 99.30409
1 FEE 01-May-99 0.568228 11.782853 0.04822 0.07
2 FEE 30-Sep-99 0.568228 11.557622 0.04916 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.557622 99.20670 1146.5935
1.415
FORMULA: 1000*(1+T)= 1146.5935
= 1078.371186
T = 5.48% 10.15%
R = 7.84%
AIM II High Yield
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 9.930282 100.70208
1 FEE 01-May-99 0.568228 9.742539 0.05832 0.07
2 FEE 30-Sep-99 0.568228 9.493560 0.05985 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 9.493560 100.58390 954.8993
1.415
FORMULA: 1000*(1+T)= 954.8993
= 898.0827747
T = -7.31% -3.21%
R = -10.19%
AIM II Capital Development
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.797954 92.61014
1 FEE 01-May-99 0.568228 9.384805 0.06055 0.07
2 FEE 30-Sep-99 0.568228 9.790042 0.05804 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 9.790042 92.49155 905.4961
1.415
FORMULA: 1000*(1+T)= 905.4961
= 851.6191025
T = -10.73% -6.77%
R = -14.84%
AIM II Aggressive Growth
01-May-98
TO NO. YEARS 1.415
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.740024 93.10966
1 FEE 01-May-99 0.568228 10.383786 0.05472 0.07
2 FEE 30-Sep-99 0.568228 11.697187 0.04858 0.07
3 FEE N/A 0 N/A 0.00000 0.06
4 FEE N/A 0 N/A 0.00000 0.06
5 FEE N/A 0 N/A 0.00000 0.05
6 FEE N/A 0 N/A 0.00000 0.04
7 FEE N/A 0 N/A 0.00000 0.03
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 30-Sep-99 11.697187 93.00636 1087.9128
1.415
FORMULA: 1000*(1+T)= 1087.9128
= 1023.182012
T = 1.63% 6.13%
R = 2.32%
<PAGE>
1yr ago: 9/30/98
Date: 9/30/99
AIM II MM
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 10.130837 98.70853
1 FEE 30-Sep-99 0.568228 10.479499 0.05422 0.07
RESULTING VALUE 30-Sep-99 10.479499 98.65430 1033.8477
1.000
FORMULA: 1000*(1+T)= 1033.8477
= 1033.847685
T = 3.38% 3.38%
R = 3.38%
AIM II GOV
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 10.445316 95.73669
1 FEE 30-Sep-99 0.568228 10.188007 0.05577 0.07
RESULTING VALUE 30-Sep-99 10.188007 95.68092 974.7979
1.000
FORMULA: 1000*(1+T)= 974.7979
= 974.7978596
T = -2.52% -2.52%
R = -2.52%
AIM II DINC
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.845379 101.57049
1 FEE 30-Sep-99 0.568228 9.576869 0.05933 0.07
RESULTING VALUE 30-Sep-99 9.576869 101.51116 972.1591
1.000
FORMULA: 1000*(1+T)= 972.1591
= 972.159079
T = -2.78% -2.78%
R = -2.78%
AIM II GUTL
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.659197 103.52827
1 FEE 30-Sep-99 0.568228 11.368869 0.04998 0.07
RESULTING VALUE 30-Sep-99 11.368869 103.47829 1176.4312
1.000
FORMULA: 1000*(1+T)= 1176.4312
= 1106.43351
T = 10.64% 17.64%
R = 10.64%
AIM II GI
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.263664 107.94865
1 FEE 30-Sep-99 0.568228 12.618134 0.04503 0.07
RESULTING VALUE 30-Sep-99 12.618134 107.90361 1361.5423
1.000
FORMULA: 1000*(1+T)= 1361.5423
= 1280.530507
T = 28.05% 36.15%
R = 28.05%
AIM II VALUE
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.272029 107.85126
1 FEE 30-Sep-99 0.568228 12.853109 0.04421 0.07
RESULTING VALUE 30-Sep-99 12.853109 107.80705 1385.6558
1.000
FORMULA: 1000*(1+T)= 1385.6558
= 1303.209241
T = 30.32% 38.57%
R = 30.32%
AIM II INTL
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.600700 116.26961
1 FEE 30-Sep-99 0.568228 10.484581 0.05420 0.07
RESULTING VALUE 30-Sep-99 10.484581 116.21541 1218.4699
1.000
FORMULA: 1000*(1+T)= 1218.4699
= 1145.970916
T = 14.60% 21.85%
R = 14.60%
AIM II GROW
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.277355 107.78934
1 FEE 30-Sep-99 0.568228 12.942547 0.04390 0.07
RESULTING VALUE 30-Sep-99 12.942547 107.74544 1394.5004
1.000
FORMULA: 1000*(1+T)= 1394.5004
= 1311.527635
T = 31.15% 39.45%
R = 31.15%
AIM II CAP
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.923141 112.06816
1 FEE 30-Sep-99 0.568228 11.659396 0.04874 0.07
RESULTING VALUE 30-Sep-99 11.659396 112.01943 1306.0788
1.000
FORMULA: 1000*(1+T)= 1306.0788
= 1228.367146
T = 22.84% 30.61%
R = 22.84%
AIM II BALANCED
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 10.054127 99.46164
1 FEE 30-Sep-99 0.568228 11.557622 0.04916 0.07
RESULTING VALUE 30-Sep-99 11.557622 99.41248 1148.9719
1.000
FORMULA: 1000*(1+T)= 1148.9719
= 1080.608031
T = 8.06% 14.90%
R = 8.06%
AIM II HIGH YIELD
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 9.015861 110.91564
1 FEE 30-Sep-99 0.568228 9.493560 0.05985 0.07
RESULTING VALUE 30-Sep-99 9.493560 110.85579 1052.4161
1.000
FORMULA: 1000*(1+T)= 1052.4161
= 989.797307
T = -1.02% 5.24%
R = -1.02%
AIM II CAPITAL DEVELOPMENT
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.340825 119.89222
1 FEE 30-Sep-99 0.568228 9.790042 0.05804 0.07
RESULTING VALUE 30-Sep-99 9.790042 119.83418 1173.1816
1.000
FORMULA: 1000*(1+T)= 1173.1816
= 1103.377305
T = 10.34% 17.32%
R = 10.34%
AIM II AGGRESSIVE GROWTH
30-Sep-98
TO NO. YEARS 1.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-98 1000.00 8.648888 115.62180
1 FEE 30-Sep-99 0.568228 11.697187 0.04858 0.07
RESULTING VALUE 30-Sep-99 11.697187 115.57322 1351.8816
1.000
FORMULA: 1000*(1+T)= 1351.8816
= 1271.444635
T = 27.14% 35.19%
<PAGE>
3 yr ago: 9/30/96
2 yr ago: 9/30/97
1 yr ago: 9/30/98
Date: 9/30/99
AIM II MM
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 9.369555 106.72865
1 FEE 30-Sep-97 0.568228 9.736516 0.05836 0.07
2 FEE 30-Sep-98 0.568228 10.130837 0.05609 0.07
3 FEE 30-Sep-99 0.568228 10.479499 0.05422 0.06
RESULTING VALUE 30-Sep-99 10.479499 106.55998 1116.6952
3.000
FORMULA: 1000*(1+T)= 1116.6952
= 1059.743726
T = 1.95% 3.75%
R = 5.97%
AIM II GOV
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 8.937002 111.89434
1 FEE 30-Sep-97 0.568228 9.555330 0.05947 0.07
2 FEE 30-Sep-98 0.568228 10.445316 0.05440 0.07
3 FEE 30-Sep-99 0.568228 10.188007 0.05577 0.06
RESULTING VALUE 30-Sep-99 10.188007 111.72470 1138.2521
3.000
FORMULA: 1000*(1+T)= 1138.2521
= 1080.201196
T = 2.60% 4.41%
R = 8.02%
AIM II DINC
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 8.510391 117.50342
1 FEE 30-Sep-97 0.568228 9.483643 0.05992 0.07
2 FEE 30-Sep-98 0.568228 9.845379 0.05772 0.07
3 FEE 30-Sep-99 0.568228 9.576869 0.05933 0.06
RESULTING VALUE 30-Sep-99 9.576869 117.32645 1123.6200
3.000
FORMULA: 1000*(1+T)= 1123.6200
= 1066.315425
T = 2.16% 3.96%
R = 6.63%
AIM II GUTL
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 7.171408 139.44263
1 FEE 30-Sep-97 0.568228 8.832618 0.06433 0.07
2 FEE 30-Sep-98 0.568228 9.659197 0.05883 0.07
3 FEE 30-Sep-99 0.568228 11.368869 0.04998 0.06
RESULTING VALUE 30-Sep-99 11.368869 139.26949 1583.3366
3.000
FORMULA: 1000*(1+T)= 1583.3366
= 1502.586445
T = 14.54% 16.55%
R = 50.26%
AIM II GI
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 7.044563 141.95345
1 FEE 30-Sep-97 0.568228 9.485998 0.05990 0.07
2 FEE 30-Sep-98 0.568228 9.263664 0.06134 0.07
3 FEE 30-Sep-99 0.568228 12.618134 0.04503 0.06
RESULTING VALUE 30-Sep-99 12.618134 141.78717 1789.0896
3.000
FORMULA: 1000*(1+T)= 1789.0896
= 1697.845998
T = 19.30% 21.40%
R = 69.78%
AIM II VALUE
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 6.852227 145.93796
1 FEE 30-Sep-97 0.568228 9.135709 0.06220 0.07
2 FEE 30-Sep-98 0.568228 9.272029 0.06128 0.07
3 FEE 30-Sep-99 0.568228 12.853109 0.04421 0.06
RESULTING VALUE 30-Sep-99 12.853109 145.77027 1873.6012
3.000
FORMULA: 1000*(1+T)= 1873.6012
= 1778.047543
T = 21.15% 23.28%
R = 77.80%
AIM II INTL
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 7.574466 132.02251
1 FEE 30-Sep-97 0.568228 9.179599 0.06190 0.07
2 FEE 30-Sep-98 0.568228 8.600700 0.06607 0.07
3 FEE 30-Sep-99 0.568228 10.484581 0.05420 0.06
RESULTING VALUE 30-Sep-99 10.484581 131.84035 1382.2908
3.000
FORMULA: 1000*(1+T)= 1382.2908
= 1311.793954
T = 9.47% 11.40%
R = 31.18%
AIM II GROW
30-Sep-96
TO NO. YEARS 3.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 6.842274 146.15025
1 FEE 30-Sep-97 0.568228 9.069998 0.06265 0.07
2 FEE 30-Sep-98 0.568228 9.277355 0.06125 0.07
3 FEE 30-Sep-99 0.568228 12.942547 0.04390 0.06
RESULTING VALUE 30-Sep-99 12.942547 145.98245 1889.3847
3.000
FORMULA: 1000*(1+T)= 1889.3847
= 1793.026046
T = 21.49% 23.63%
R = 79.30%
AIM II CAP
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 8.269327 120.92882
1 FEE 30-Sep-97 0.568228 10.224507 0.05558 0.07
2 FEE 30-Sep-98 0.568228 8.923141 0.06368 0.07
3 FEE 30-Sep-99 0.568228 11.659396 0.04874 0.06
RESULTING VALUE 30-Sep-99 11.659396 120.76083 1407.9983
3.000
FORMULA: 1000*(1+T)= 1407.9983
= 1336.190393
T = 10.14% 12.08%
R = 33.62%
AIM II Balanced
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 10.054127 0.05652 0.07
3 FEE 30-Sep-99 0.568228 11.557622 0.04916 0.06
RESULTING VALUE 30-Sep-99 11.557622 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II High Yield
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 9.015861 0.06303 0.07
3 FEE 30-Sep-99 0.568228 9.493560 0.05985 0.06
RESULTING VALUE 30-Sep-99 9.493560 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Capital Development
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 8.340825 0.06813 0.07
3 FEE 30-Sep-99 0.568228 9.790042 0.05804 0.06
RESULTING VALUE 30-Sep-99 9.790042 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Aggressive Growth
31-Dec-93
TO NO. YEARS 3.000
31-Dec-96
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Sep-96 1000.00 #N/A #N/A
1 FEE 30-Sep-97 0.568228 #N/A #N/A 0.07
2 FEE 30-Sep-98 0.568228 8.648888 0.06570 0.07
3 FEE 30-Sep-99 0.568228 11.697187 0.04858 0.06
RESULTING VALUE 30-Sep-99 11.697187 #N/A #N/A
3.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
<PAGE>
5 Yr Ago: 9/29/94
4 yr Ago: 9/30/95
3 yr ago: 9/30/96
2 yr ago: 9/30/97
1 yr ago: 9/30/98
Date: 9/30/99
AIM II MM
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 8.641546 115.72003
1 FEE 30-Sep-95 0.568228 9.026517 0.06295 0.07
2 FEE 30-Sep-96 0.568228 9.369555 0.06065 0.07
3 FEE 30-Sep-97 0.568228 9.736516 0.05836 0.06
4 FEE 30-Sep-98 0.568228 10.130837 0.05609 0.06
5 FEE 30-Sep-99 0.568228 10.479499 0.05422 0.05
RESULTING VALUE 30-Sep-99 10.479499 115.55136 1210.9203
5.000
FORMULA: 1000*(1+T)= 1210.9203
= 1159.456207
T = 3.00% 3.90%
R = 15.95%
AIM II GOV
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 7.912806 126.37741
1 FEE 30-Sep-95 0.568228 8.705988 0.06527 0.07
2 FEE 31-Aug-95 0.568228 8.644851 0.06573 0.07
3 FEE 30-Sep-97 0.568228 9.555330 0.05947 0.06
4 FEE 30-Sep-98 0.568228 10.445316 0.05440 0.06
5 FEE 30-Sep-99 0.568228 10.188007 0.05577 0.05
RESULTING VALUE 30-Sep-99 10.188007 126.20777 1285.8057
5.000
FORMULA: 1000*(1+T)= 1285.8057
= 1231.158935
T = 4.25% 5.16%
R = 23.12%
AIM II DINC
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 7.036223 142.12170
1 FEE 30-Sep-95 0.568228 7.908264 0.07185 0.07
2 FEE 31-Aug-95 0.568228 7.783638 0.07300 0.07
3 FEE 30-Sep-97 0.568228 9.483643 0.05992 0.06
4 FEE 30-Sep-98 0.568228 9.845379 0.05772 0.06
5 FEE 30-Sep-99 0.568228 9.576869 0.05933 0.05
RESULTING VALUE 30-Sep-99 9.576869 141.94474 1359.3862
5.000
FORMULA: 1000*(1+T)= 1359.3862
= 1301.612249
T = 5.41% 6.33%
R = 30.16%
AIM II GUTL
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 5.672160 176.29969
1 FEE 30-Sep-95 0.568228 6.627211 0.08574 0.07
2 FEE 31-Aug-95 0.568228 6.365776 0.08926 0.07
3 FEE 30-Sep-97 0.568228 8.832618 0.06433 0.06
4 FEE 30-Sep-98 0.568228 9.659197 0.05883 0.06
5 FEE 30-Sep-99 0.568228 11.368869 0.04998 0.05
RESULTING VALUE 30-Sep-99 11.368869 176.12655 2002.3596
5.000
FORMULA: 1000*(1+T)= 2002.3596
= 1917.259351
T = 13.90% 14.90%
R = 91.73%
AIM II GI
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 4.833391 206.89409
1 FEE 30-Sep-95 0.568228 6.249313 0.09093 0.07
2 FEE 31-Aug-95 0.568228 5.983021 0.09497 0.07
3 FEE 30-Sep-97 0.568228 9.485998 0.05990 0.06
4 FEE 30-Sep-98 0.568228 9.263664 0.06134 0.06
5 FEE 30-Sep-99 0.568228 12.618134 0.04503 0.05
RESULTING VALUE 30-Sep-99 12.618134 206.72782 2608.5193
5.000
FORMULA: 1000*(1+T)= 2608.5193
= 2497.657211
T = 20.09% 21.14%
R = 149.77%
AIM II VALUE
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 4.819044 207.51005
1 FEE 30-Sep-95 0.568228 6.559933 0.08662 0.07
2 FEE 31-Aug-95 0.568228 6.324854 0.08984 0.07
3 FEE 30-Sep-97 0.568228 9.135709 0.06220 0.06
4 FEE 30-Sep-98 0.568228 9.272029 0.06128 0.06
5 FEE 30-Sep-99 0.568228 12.853109 0.04421 0.05
RESULTING VALUE 30-Sep-99 12.853109 207.34236 2664.9940
5.000
FORMULA: 1000*(1+T)= 2664.9940
= 2551.731738
T = 20.61% 21.66%
R = 155.17%
AIM II INTL
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 6.042393 165.49736
1 FEE 30-Sep-95 0.568228 6.573935 0.08644 0.07
2 FEE 31-Aug-95 0.568228 6.460951 0.08795 0.07
3 FEE 30-Sep-97 0.568228 9.179599 0.06190 0.06
4 FEE 30-Sep-98 0.568228 8.600700 0.06607 0.06
5 FEE 30-Sep-99 0.568228 10.484581 0.05420 0.05
RESULTING VALUE 30-Sep-99 10.484581 165.31519 1733.2605
5.000
FORMULA: 1000*(1+T)= 1733.2605
= 1659.596947
T = 10.66% 11.63%
R = 65.96%
AIM II GROW
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 4.598378 217.46801
1 FEE 30-Sep-95 0.568228 6.188729 0.09182 0.07
2 FEE 31-Aug-95 0.568228 5.974412 0.09511 0.07
3 FEE 30-Sep-97 0.568228 9.069998 0.06265 0.06
4 FEE 30-Sep-98 0.568228 9.277355 0.06125 0.06
5 FEE 30-Sep-99 0.568228 12.942547 0.04390 0.05
RESULTING VALUE 30-Sep-99 12.942547 217.30020 2812.4181
5.000
FORMULA: 1000*(1+T)= 2812.4181
= 2692.890334
T = 21.91% 22.97%
R = 169.29%
AIM II CAP
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 5.323774 187.83667
1 FEE 30-Sep-95 0.568228 7.460865 0.07616 0.07
2 FEE 31-Aug-95 0.568228 7.215411 0.07875 0.07
3 FEE 30-Sep-97 0.568228 10.224507 0.05558 0.06
4 FEE 30-Sep-98 0.568228 8.923141 0.06368 0.06
5 FEE 30-Sep-99 0.568228 11.659396 0.04874 0.05
RESULTING VALUE 30-Sep-99 11.659396 187.66868 2188.1034
5.000
FORMULA: 1000*(1+T)= 2188.1034
= 2095.109039
T = 15.94% 16.95%
R = 109.51%
AIM II Balanced
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 10.054127 0.05652 0.06
5 FEE 30-Sep-99 0.568228 11.557622 0.04916 0.05
RESULTING VALUE 30-Sep-99 11.557622 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II High Yield
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 9.015861 0.06303 0.06
5 FEE 30-Sep-99 0.568228 9.493560 0.05985 0.05
RESULTING VALUE 30-Sep-99 9.493560 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Cap Dev
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 8.340825 0.06813 0.06
5 FEE 30-Sep-99 0.568228 9.790042 0.05804 0.05
RESULTING VALUE 30-Sep-99 9.790042 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Aggr Gro
29-Sep-94
TO NO. YEARS 5.000
30-Sep-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 29-Sep-94 1000.00 #N/A #N/A
1 FEE 30-Sep-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.07
3 FEE 30-Sep-97 0.568228 #N/A #N/A 0.06
4 FEE 30-Sep-98 0.568228 8.648888 0.06570 0.06
5 FEE 30-Sep-99 0.568228 11.697187 0.04858 0.05
RESULTING VALUE 30-Sep-99 11.697187 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Today 9/30/99 8/31/99 12/31/98 9/30/98 9/30/97 9/30/96 9/30/95 9/29/94
One Month Ago 8/31/99
End of last year12/31/98
One year Ago 9/30/98
Two Years Ago 9/30/97
Three Years ago 9/30/96
Four Years Ago 9/30/95
Five Years Ago 9/29/94
AUVS
Today One Month AgoEnd of last yOne year Ago Two Years AgoThree Years agoInception Five Yeas Ago
-----------------------------------------------------------------------------------------------------
AIM II CAP 11.659396 11.59167 11.037361 8.923141 10.22450713 8.269327478 8.403193395 5.323774132
AIM II GROW 12.942547 12.845381 11.824071 9.277355 9.069998287 6.842273731 6.981368269 4.598377566
AIM II INTL 10.484581 10.26889 9.673748 8.6007 9.179598758 7.57446584 7.590858081 6.042392562
AIM II VALUE 12.853109 12.829184 11.746511 9.272029 9.135709482 6.85222657 6.972296641 4.819043605
AIM II G&I 12.618134 12.790728 11.68426 9.263664 9.485998306 7.044562938 7.178906962 4.833390852
AIM II GUTL 11.368869 11.391505 10.803113 9.659197 8.832618172 7.171407861 7.282180126 5.672159776
AIM II DINC 9.576869 9.513866 9.872585 9.845379 9.483642693 8.510390898 8.6040343 7.036223022
AIM II GOV 10.188007 10.095527 10.705783 10.445316 9.555330493 8.937002211 9.003653901 7.912806276
AIM II MM 10.479499 10.448406 10.221009 10.130837 9.736515977 9.369555409 9.382945332 8.641546448
AIM II BAL 11.557622 11.55801 11.298111 10.054127 #N/A #N/A 10.07007905 #N/A
AIM II HY 9.49356 9.614538 9.0985 9.015861 #N/A #N/A 9.930281711 #N/A
AIM II CAPD 9.790042 9.531731 9.91399 8.340825 #N/A #N/A 10.79795421 #N/A
AIM II AGG 11.697187 11.356512 10.560784 8.648888 #N/A #N/A 10.7400237 #N/A
Returns
MTD YTD One Year Three Year Tot3 Yr. AVG Inception Tot. Inception AVFive Year Avg
--- --- -------- ----------------------- -------------- -------------------------
AIM II CAP 0.58% 5.64% 30.66% 41.00% 12.13% 38.75% 11.70% 10.88%
AIM II GROW 0.76% 9.46% 39.51% 89.16% 23.67% 85.39% 23.19% 15.07%
AIM II INTL 2.10% 8.38% 21.90% 38.42% 11.45% 38.12% 11.53% 7.32%
AIM II VALUE 0.19% 9.42% 38.62% 87.58% 23.33% 84.35% 22.96% 13.98%
AIM II G&I -1.35% 7.99% 36.21% 79.12% 21.45% 75.77% 20.99% 13.90%
AIM II GUTL -0.20% 5.24% 17.70% 58.53% 16.60% 56.12% 16.24% 11.23%
AIM II DINC 0.66% -3.00% -2.73% 12.53% 4.01% 11.31% 3.69% 6.95%
AIM II GOV 0.92% -4.84% -2.46% 14.00% 4.46% 13.15% 4.26% 5.71%
AIM II MM 0.30% 2.53% 3.44% 11.85% 3.80% 11.69% 3.81% 3.23%
AIM II BAL 0.00% 2.30% 14.95% #N/A #N/A 14.77% 10.22% #N/A
AIM II HY -1.26% 4.34% 5.30% #N/A #N/A -4.40% -3.13% #N/A
AIM II CAPD 2.71% -1.25% 17.37% #N/A #N/A -9.33% -6.69% #N/A
AIM II AGG 3.00% 10.76% 35.24% #N/A #N/A 8.91% 6.22% #N/A
</TABLE>
Power of Attorney
With Respect to the Allstate Life Insurance Company of New York
Filing on Form N-4 for Allstate Life of New York Separate Account A
Know all men by these presents that Samuel H. Pilch, whose signature
appears below, constitutes and appoints Louis G. Lower, II, and Michael J.
Velotta, and each of them, his attorney-in-fact, with power of substitution, and
herein any and all capacities, to sign any registration statements and
amendments thereto for the Form N-4 Allstate Life of New York Separate Account A
and to file the same, with exhibits thereto and other documents, in connection
therewith, with the Securities and Exchange Commission, hereby ratifying and
confirming all that each of said attorneys-in-fact, or his substitute or
substitutes, may do or cause to be done by virtue hereof.
Date: November 10, 1999
/s/ SAMUEL H. PILCH
- ----------------------------
Samuel H. Pilch
<PAGE>
Power of Attorney
With Respect to the Allstate Life Insurance Company of New York
Filing on Form N-4 for Allstate Life of New York Separate Account A
Know all men by these presents that Joseph J. Richardson, Jr., whose
signature appears below, constitutes and appoints Louis G. Lower, II, and
Michael J. Velotta, and each of them, his attorney-in-fact, with power of
substitution, and herein any and all capacities, to sign any registration
statements and amendments thereto for the Form N-4 Allstate Life of New York
Separate Account A and to file the same, with exhibits thereto and other
documents, in connection therewith, with the Securities and Exchange Commission,
hereby ratifying and confirming all that each of said attorneys-in-fact, or his
substitute or substitutes, may do or cause to be done by virtue hereof.
Date: November 10, 1999
/s/ JOSEPH J. RICHARDSON, JR.
- ----------------------------
Joseph J. Richardson, Jr.
