As filed with the Securities and Exchange Commission on March 15, 1999
- ------------------------------------------------------------------------------
File Nos. 333-____
811-07467
Securities And Exchange Commission
Washington. D.C. 20549
Form N-4
Registration Statement under the Securities Act of 1933 [X]
Pre-Effective Amendment No.__
Post-effective Amendment No. __
and/or
Registration Statement under the Investment Company Act of 1940 [X]
Amendment No. 4
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
Farmingville, New York 11738-9075
(Address of Depositor's Principal Offices)
847/402-2400
(Depositor's Telephone Number, Including Area Code)
Michael J. Velotta
Vice President, Secretary And General Counsel
Allstate Life Insurance Company of New York
3100 Sanders Road 60062
Northbrook, Illinois 60062
847/402-2400
(Name, Complete Address and Telephone Number of Agent for Service)
Copy to:
Richard T. Choi, Esquire
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W.
Suite 825
Washington, D.C. 20036-5366
Approximate date of proposed public offering: As soon as practicable after the
effective date of the registration statement.
The registrant hereby amends this registration statement on such date or dates
as may be necessary to delay its effective date until the registrant shall file
a further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the registration shall become effective on such
date as the Commission, acting pursuant to Section 8(a), may determine.
Title of Securities Being Registered: Units of interest in the Allstate Life of
New York Separate Account A under deferred variable annuity contracts.
<PAGE>
PUTNAM ALLSTATE ADVISOR VARIABLE ANNUITY
Offered By
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
THROUGH ITS SEPARATE ACCOUNT A
One Allstate Drive
Farmingville, New York 11738-9075
1-800/xxx-xxxx
This prospectus describes the "Putnam Allstate Advisor Variable Annuity," a
flexible premium deferred variable annuity contract ("contract") offered by
Allstate Life Insurance Company of New York ("Putnam Allstate Advisor"). This
prospectus contains important information about the contract that you should
know before investing. Please read it and keep it for future reference.
The contract offers 23 investment alternatives including two fixed account
options that offer an interest rate guaranteed by Allstate New York and 21
sub-accounts that invest in the corresponding mutual fund portfolios ("funds")
listed below. The 21 funds are portfolios of the Putnam Variable Trust. You can
put your money in any of these investment alternatives (except as noted).
(Putnam fund information to be inserted)
We have filed a Statement of Additional Information ("SAI"), dated May 1, 1999,
with the Securities and Exchange Commission ("SEC"). The SAI contains more
information about the contract and is legally a part of the prospectus. The SEC
maintains a Web site (http://www.sec.gov) that contains the SAI, material
incorporated by reference, and other information regarding registrants that file
electronically with the SEC. The Table of Contents of the SAI is on page __of
this prospectus. For a free copy of the SAI, call us at (800) xxx-xxxx or write
us at: P.O. Box xxxx, Palatine, Illinois 60xxxx.
THE CONTRACTS MAY BE DISTRIBUTED THROUGH BROKER-DEALERS WHICH HAVE RELATIONSHIPS
WITH BANKS OR OTHER FINANCIAL INSTITUTIONS OR BY EMPLOYEES OF SUCH BANKS;
HOWEVER, THE CONTRACTS AND THE INVESTMENTS IN THE SEPARATE ACCOUNT ARE NOT
DEPOSITS, OR OBLIGATIONS OF, OR GUARANTEED OR ENDORSED BY ANY BANK, AND THE ARE
NOT FEDERALLY INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, THE FEDERAL DEPOSIT
INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. INVESTMENT
IN THE CONTRACTS INVOLVES INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL.
THE SEC HAS NOT APPROVED OR DISAPPROVED THE SECURITIES DESCRIBED IN THIS
PROSPECTUS NOR HAS IT PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS.
ANYONE WHO TELLS YOU OTHERWISE IS COMMITTING A FEDERAL CRIME.
The date of this prospectus is May 1, 1999
<PAGE>
TABLE OF CONTENTS
Page
DEFINITIONS
SUMMARY
FEE TABLE
CONDENSED FINANCIAL INFORMATION
1. THE ANNUITY CONTRACT
2. PURCHASE
Purchase Payments
Allocation of Purchase Payments
Accumulation Units
Right to Cancel
3. INVESTMENT ALTERNATIVES
Funds
Fixed Account Options
Transfers
Dollar Cost Averaging Program
Automatic Fund Rebalancing Program
Voting Rights Substitution
4. EXPENSES
Insurance Charges
Contract Maintenance Charge
Withdrawal Charge
Premium Taxes
Transfer Fee
Fund Expenses
5. ACCESS TO YOUR MONEY
Systematic Withdrawal Program
6. PERFORMANCE
7. DEATH BENEFIT
8. INCOME PAYMENTS (THE PAYOUT PHASE)
9. TAXES
Introduction
Taxation of Annuities in General
Tax Qualified Contracts
Income Tax Withholding
10. OTHER INFORMATION
Putnam Allstate Advisor
The Variable Account
Distributor
Ownership
Beneficiary
Assignment
Suspension of Payments or Transfers
Modification
Year 2000
Financial Statements
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
ORDER FORM
<PAGE>
DEFINITIONS
Accumulation Unit: A measure of your ownership interest in a sub-account of the
variable account prior to the payout start date.
Accumulation Unit Value: The value of each accumulation unit that we calculate
each valuation date. Each sub-account of the variable account has its own
accumulation unit value.
Annuitant(s): The person or persons whose life determines the latest payout
start date and the amount and duration of any income payments for income plan
options other than the guaranteed payments for a specified period option. Joint
annuitants are only permitted on or after the payout start date.
Beneficiary(ies): The person(s) to whom any benefits are due when a death
benefit is payable and there is no surviving owner.
Company: Allstate Life Insurance Company of New York.
Contract: The Allstate New York Flexible Premium Deferred Variable Annuity
Contract, known as the "Putnam Allstate Advisor Variable Annuity," that is
described in this prospectus.
Contract Anniversary: An anniversary of the date that the contract was issued.
Contract Value: The value of all amounts accumulated under the contract prior to
the payout start date, equivalent to the accumulation units in each sub-account
of the variable account multiplied by the respective accumulation unit value,
plus the value in the fixed account options.
Contract Year: A period of 12 months starting with the issue date or any
contract anniversary.
Fixed Account: All of the assets of Allstate New York that are not in separate
accounts.
Income Plan: One of several ways to receive income payments after the payout
start date. Income payments are based on the contract value adjusted by any
taxes on the payout start date. Income payment amounts may vary based on any
sub-account and/or may be fixed for the duration of the income plan.
Investment Alternatives: The sub-accounts of the variable account and the 2
fixed account options.
Non-Qualified Contracts: Contracts other than qualified contracts.
Owner(s)("You"): The person or persons designated as the owner in the contract.
Payout Start Date: The date on which income payments begin.
Qualified Contracts: Contracts issued under plans that qualify for special
federal income tax treatment under Sections 401(a), 403(a), 403(b), 408A and 408
of the Internal Revenue Code.
Settlement Value: The contract value less any applicable withdrawal charge,
contract maintenance charge, and any premium tax. The settlement value will be
calculated at the end of a valuation period coinciding with a request for
payment.
Sub-account: A portion of the variable account invested in shares of a
corresponding fund. The investment performance of each sub-account is linked
directly to the investment performance of its corresponding fund.
Valuation Date: Each day that the New York Stock Exchange is open for business.
The valuation date does not include such federal and non-federal holidays as are
observed by the New York Stock Exchange.
Valuation Period: The period between successive valuation dates, commencing at
the close of regular trading on the New York Stock Exchange (which is normally
4:00 pm Eastern Time) and ending as of the close of regular trading on the New
York Stock Exchange on the next succeeding valuation date.
Variable Account: Allstate Life of New York Separate Acount A, a separate
investment account established by Allstate New York to receive and invest
purchase variable account payments paid under the contracts.
<PAGE>
SUMMARY
The sections in this summary correspond to sections in this prospectus that
discuss the topics in more detail.
1. THE ANNUITY CONTRACT:
The Putnam Allstate Advisor Variable Annuity contract is a contract between you,
the owner, and Allstate New York, an insurance company. The contract provides a
means for investing on a tax deferred basis in ___ sub-accounts and 2 fixed
account options. The contract is intended for retirement savings or other
long-term investment purposes and provides for a death benefit and guaranteed
income options.
The contract offers __ sub-accounts that invest in the funds listed on the cover
of this prospectus. The sub-accounts may offer a better return than the fixed
account. However, this is NOT guaranteed. You also can lose your money by
investing in the sub-accounts. The fixed account options offer an interest rate
that Allstate New York guarantees. While your money is in the fixed account, we
guarantee both the interest your money will earn as well as your principal.
You can put money into any or all of the sub-accounts (except as noted) and the
fixed account options. You can transfer among the sub-accounts up to 12 times a
year without charge. After the 12 transfers, the charge is 0.50% of the amount
transferred.
The contract, like all deferred annuity contracts, has two phases: the
accumulation phase and the payout phase. During the accumulation phase, earnings
accumulate on a tax deferred basis and are taxed as income when you make a
withdrawal. The payout phase occurs when you begin receiving regular payments
from your contract.
The amount of money you are able to accumulate in your account during the
accumulation phase will determine the amount of income payments during the
payout phase.
2. PURCHASE:
You can buy a contract with a minimum payment of $1,000 ($500 minimum for tax
qualified contracts). You can add $500 or more any time you like during the
accumulation phase ($50 minimum for automatic additions). Your registered
representative can help you fill out the proper forms. We may limit the amount
of any additional purchase payment to a maximum of $1,000,000.
3. INVESTMENT ALTERNATIVES:
You can put your money in any or all of these investment alternatives:
Funds:
(fund information to be inserted)
Fixed Account Options:
o Standard Fixed Account Option
o Twelve Month Dollar Cost Averaging Fixed Account Option
4. EXPENSES:
The contract has insurance features and investment features, and there are costs
related to each.
Each year, on the contract anniversary, Allstate New York deducts a $30 annual
contract fee from your contract. During the accumulation phase, Allstate New
York waives this charge if the value of your contract is greater than $50,000 or
if you have allocated all of your money to the fixed account options on the
contract anniversary. During the payout phase, we will deduct the $30 charge
equally from each income payment. We will also waive the charge if the contract
value on the payout start date is $50,000 or more or if all payments are fixed
amount income payments.
Allstate New York deducts an insurance charge at an annual rate of 1.25% of the
average daily value of your contract allocated to the sub-accounts.
If you withdraw your money, Allstate New York may assess a withdrawal charge of
up to 7% of the purchase payment(s) you withdraw. The charge declines to 0% over
a 7 year period beginning on the day we receive each purchase payment. When you
begin receiving regular income payments from your annuity, Allstate New York
will assess a state premium tax, if applicable. The State of New York currently
does not impose a premium tax.
You can make 12 transfers every year during the accumulation phase without
charge. We measure a year from the day we issued your contract and each
anniversary thereafter. If you make more than 12 transfers in one year, we will
deduct a transfer fee for each subsequent transfer. The fee is 0.50% of the
amount transferred.
There are also fund expenses that currently range from __% to 1._% of the
average daily value of the selected fund.
5. ACCESS TO YOUR MONEY:
You can take money out at any time during the accumulation phase. A withdrawal
must be at least $50. During each contract year, you can take out up to the
greater of earnings not previously withdrawn or 15% of your total purchase
payments without charge from Allstate New York. Withdrawals in excess of that
will be subject to a declining seven year withdrawal charge schedule ranging
from 7% to 0% of each payment you take out. Each purchase payment you add to
your contract has its own seven year withdrawal charge period. After Allstate
New York has had a payment for seven years, there is no charge for withdrawing
that payment. Of course, you also may have to pay income tax and a tax penalty
on money you take out.
6. PERFORMANCE:
The value of the contract will vary up or down depending upon the investment
performance of the sub-account(s) you choose. Allstate New York provides
performance information in the Statement of Additional Information. Past
performance is not a guarantee of future results.
7. DEATH BENEFIT:
If the owner or the annuitant dies before the payout phase, any surviving
owner(s) or, if none, the person you have chosen as your beneficiary is eligible
to receive a death benefit.
8. ANNUITY PAYMENTS (THE PAYOUT PHASE):
If you want to receive regular income from your annuity, you can choose one of
three income options. Once you begin receiving regular payments, you cannot
change your payment plan. At the beginning of the payout phase, you can choose
to have payments come from the fixed account, the sub-accounts or both. If you
choose to have any part of your payments come from the sub-accounts, the dollar
amount of your payments may go up or down.
9. TAXES:
Your earnings are not taxed until you take them out. If you take money out
during the accumulation phase, earnings come out first and are taxed as income.
If you are younger than 59 1/2 when you take money out, you may have to pay a
10% federal income tax penalty on the earnings. Payments during the payout phase
are considered partly a return of your original investment. That part of each
payment is not taxable as income.
10. OTHER INFORMATION:
Return Privilege. If you cancel the contract within 10 days after receiving it
(60 days if you are exchanging another contract for the contract described in
this prospectus), we will return your purchase payments adjusted to reflect any
gain or loss from the date of allocation to the date of cancellation. We will
not assess a withdrawal charge. You may receive more or less than your original
payment.
No Probate. In most cases, when you die, the person you choose as your
beneficiary will receive the death benefit without going through probate.
Who Should Purchase the Contract? We designed the contract for people seeking
long-term tax deferred accumulation of assets, generally for retirement or other
long-term purposes. The tax deferred feature is most attractive to people in
high federal and state tax brackets. You should not buy a contract if you are
looking for a short-term investment or if you cannot take the risk of getting
back less money than you put in.
Additional Features. The contract has additional features you might be
interested in. For example:
o You can arrange to have money automatically sent to you each month while
your contract is still in the accumulation phase. Of course, you'll have to
pay taxes on money you receive. We call this feature the systematic
withdrawal program.
o You can arrange to have a regular amount of money automatically invested in
the sub-accounts each month, theoretically giving you a lower average cost
per unit over time than a single one time purchase. We call this feature
dollar cost averaging.
o You can arrange to automatically readjust the money among the sub-accounts
periodically to keep the blend you select. We call this feature automatic
rebalancing.
o You can arrange to have additional purchase payments made automatically
from your bank account. We call this feature automatic additions.
These features may not be suitable for your particular situation.
11. INQUIRIES:
If you need more information, please contact us at:
Allstate Life Insurance Company of New York
P.O. Box xxxx
Palatine, IL xxxxx
1-800/xxx-xxxx
FEE TABLE
Owner Transaction Expenses (all sub-accounts)
Sales Load Imposed on Purchases (as a percentage of purchase None
payments)
Contingent Deferred Sales Charge (as a percentage of purchase payments):
Year Since Applicable Withdrawal
Purchase Payment Accepted Charge Percentage*
1st Year.......................................... 7%
2nd Year.......................................... 7%
3rd Year.......................................... 6%
4th Year.......................................... 5%
5th Year.......................................... 4%
6th Year.......................................... 3%
7th Year.......................................... 2%
Thereafter........................................ 0%
Transfer Fee...................................... **
Annual Contract Fee............................... $30***
Variable Account Annual Expenses (as a percentage of the contract's average net
assets in the variable account):
Mortality and Expense Risk Charge........................... 1.25%+
* During each contract year, you can take out up to the greater of
earnings not previously withdrawn or 15% of your total purchase payments
without incurring a withdrawal charge.
** If you make more than 12 transfers per year, for each subsequent
transfer, we will deduct a transfer fee of 0.50% of the dollar amount
transferred.
*** During the accumulation phase, we will waive the annual contract fee
if the total account value is $50,000 or more or if the entire contract
value is allocated to the fixed account options as of a contract
anniversary. During the payout phase, different restrictions may apply.
Please see your contract for further details.
+ For amounts allocated to the variable account, we assess the mortality
and expense risk charge during both the accumulation and the payout phases
of the contract.
Fund Annual Expenses (Net of Voluntary Reductions and Reimbursements) (as a
percentage of Fund average daily net assets of
Other Expenses
(after expense
Management 12b-1 reimbursement for Total Annual
Fund Fee Fees certain Funds) Fund Expenses
(fund information to be inserted)
Example:
You would pay the following expenses on a $1,000 investment in a sub-account,
assuming a 5% annual return on assets:
upon surrender at the end of each time period:
Time Periods
1 year 3 years
------ -------
(fund information to be inserted)
if you do not surrender or if you elect to receive income payments:
Time Periods
1 year 3 years
------ -------
(fund information to be inserted)
The purpose of the Fee Table is to show you the various expenses you will incur
directly or indirectly with the contract. The Fee Table reflects expenses of the
variable account as well as the funds. The Fee Table does not reflect any
premium tax because the State of New York does not currently impose one. The
assumed average contract size is $30,000. You should not consider the examples
to be a representation of past or future expenses.
Actual expenses may be greater or less than those shown.
CONDENSED FINANCIAL INFORMATION
The offering of the contracts commenced as of the date of this prospectus.
Accordingly, there are no accumulation unit values to report for the contracts.
1. THE ANNUITY CONTRACT
The Putnam Allstate Advisor Variable Annuity is an annuity contract that you can
use to save for retirement and then receive an income, in the form of annuity
payments, beginning on a designated date that is at least 30 days after you
purchase the annuity. Until you decide to begin receiving annuity payments, your
contract is in the accumulation phase. Once you begin receiving annuity
payments, your contract is in the payout phase.
The contract benefits from tax deferral. Tax deferral means that you are not
taxed on any earnings on the assets in your contract until you take money out of
your contract.
The contract is called a variable annuity because you can choose among __
sub-accounts that invest in corresponding funds. Depending upon market
conditions, you can make or lose money in any of these sub-accounts. If you
select a sub-account, the amount of money you accumulate in your contract during
the accumulation phase will depend upon the investment performance of the
sub-accounts you select. Similarly, the amount of the annuity payments you
receive during the payout phase will depend upon the investment performance of
the sub-accounts you select for the payout phase.
The contract also offers 2 fixed account options. Each fixed account option
offers an interest rate that Allstate New York guarantees. Allstate New York
guarantees that the interest credited to a fixed account will not be less than
3% per year. If you select a fixed account option, your money will be placed
with the other general assets of Allstate New York, and the amount of money you
accumulate in the fixed account option during the accumulation phase will depend
upon the total interest we credit to your contract. In addition, the amount of
the annuity payments derived from any fixed account option will remain level for
the entire payout phase.
As owner of the contract, you exercise all rights under the contract. You can
change the owner at any time by notifying Allstate New York in writing. We have
described more information on this topic in Section 10 "Other Information."
We will issue the contracts as group contracts. We will issue a certificate that
represents your ownership and summarizes the provisions of the group contract.
For convenience, this prospectus refers to both contracts and certificates as
"contracts."
2. PURCHASE
Purchase Payments
A purchase payment is the money you give us to buy the contract. The minimum we
will accept is $1,000 when you buy the contract as a non-qualified contract. If
you are buying the contract as part of an IRA (Individual Retirement Annuity),
or other qualified plan, the minimum we will accept is $500. The maximum we
accept is $1 million without our prior approval. You can make additional
purchase payments of $500 or more to either type of contract ($50 minimum for
automatic additions). We also reserve the right to reject any application.
Allocation of Purchase Payments
When you purchase a contract, we will allocate your purchase payment to the
sub-accounts and/or any fixed account options you have selected. If you make
additional purchase payments, we will allocate them in the same way as your
most recent purchase payment unless you tell us otherwise.
Once we receive your purchase payment and the necessary information, we will
issue your contract and allocate your first purchase payment within 2 business
days. If you do not give us all of the information we need, we will contact you.
If for some reason we are unable to complete this process within 5 business
days, we will either send back your money or get your permission to keep it
until we get all of the necessary information. If you make additional purchase
payments, we will credit these amounts to your contract within one business day
of when we receive them at our home office. Our business day closes when the New
York Stock Exchange closes, usually 4:00 P.M. Eastern time.
Accumulation Units
The value of the variable annuity portion of your contract will go up or down
depending upon the investment performance of the sub-account(s) you choose. To
keep track of the value of your contract, we use a unit of measure we call an
"accumulation unit." (An accumulation unit works like a share of a mutual fund.)
During the payout phase of the contract we use a similar unit of measure we call
an "annuity unit."
Every day we determine the value of an accumulation unit for each sub-account.
We do this by:
1. determining the total amount of money invested in the particular
sub-account;
2. subtracting from that amount any insurance charges and any other charges
such as taxes we have deducted; and
3. dividing this amount by the number of outstanding accumulation units.
The value of an accumulation unit may go up or down from day to day.
When you make a purchase payment, we credit your contract with accumulation
units. To determine the number of accumulation units to credit, we divide the
amount of the purchase payment allocated to a sub-account by the value of the
accumulation unit for that sub-account.
We calculate the value of an accumulation unit for each sub-account after the
New York Stock Exchange closes each day and then credit your contract.
Return Privilege
If you change your mind about owning your contract, you can cancel it within the
cancellation period, which is the 10 day period after you receive the contract
(60 days if you are exchanging another contract for the contract described in
this prospectus). When you cancel the contract within this time period, Allstate
New York will not assess a withdrawal charge. Allstate New York will refund any
purchase payments allocated to the sub-accounts, adjusted to reflect any gain or
loss from the date of allocation to the date of cancellation, plus any purchase
payments allocated to the fixed account options.
3. INVESTMENT ALTERNATIVES
The contract currently offers 21 sub-accounts and 2 fixed account options.
Additional sub-accounts may be available in the future. Each sub-account invests
in a corresponding fund.
YOU SHOULD READ THE PROSPECTUS FOR THE FUNDS CAREFULLY BEFORE INVESTING. A COPY
OF THE PROSPECTUS IS ATTACHED TO THIS PROSPECTUS.
Variable Funds:
(Putnam fund information to be inserted)
Fixed Account Options:
o Standard Fixed Account Option
o Twelve Month Dollar Cost Averaging Fixed Account Option
Funds
(Putnam fund information to be inserted)
Shares of the funds may be offered in connection with certain variable annuity
contracts and variable life insurance policies of various life insurance
companies that may or may not be affiliated with Allstate New York. Certain
funds may also be sold directly to qualified plans. The funds do not believe
that offering their shares in this manner will be disadvantageous to you.
Allstate New York may enter into certain arrangements under which it is
reimbursed by the funds' advisors, distributors and/or affiliates for the
administrative services that it provides to the funds.
Fixed Account Options
Monies you allocate to a fixed account option become part of the general account
of Allstate New York, which supports Allstate New York's insurance and annuity
obligations. Instead of you bearing the investment risk, as is the case for
amounts in the variable account, Allstate New York bears the investment risk for
all amounts in any fixed account option. The interest rates for the fixed
account options will never be less than 3%. Currently, Allstate New York offers
2 fixed account options.
Standard Fixed Account Option. Monies you allocate to the standard fixed account
option will earn interest at the current rate in effect at the time of
allocation or transfer to the standard fixed account option for the duration of
a specified period we call a "guarantee period". Allstate New York currently
offers a one year guarantee period. Allstate New York may offer additional
guarantee periods. After the initial guarantee period, we will guarantee a
renewal rate.
Twelve Month Dollar Cost Averaging Fixed Account Option. Monies you allocate to
the twelve month dollar cost averaging fixed account option will earn interest
at the current rate in effect at the time of allocation. Each purchase payment
and accrued interest must be transferred to one or more sub-accounts that you
select in equal monthly installments within a twelve month transfer period. You
cannot transfer money from another fixed account option or from a sub-account
into the twelve month dollar cost averaging fixed account option.
Allstate New York reserves the right to delete or add fixed account options.
Please consult your sales representative for information regarding the
availability of the fixed account options.
Transfers
Prior to the payout start date, you can transfer money among the sub-accounts
and the fixed account options subject to the following restrictions:
o You may not transfer money into the twelve month dollar cost averaging fixed
account option.
o The maximum amount you can transfer from the standard fixed account option
during any contract year is the greater of 30% of the standard fixed
account option balance as of the last contract anniversary or the greatest
dollar amount of any prior transfer from the standard fixed account option.
This limitation does not apply to dollar cost averaging.
o If any interest rate is renewed at a rate at least one percentage point
less than the previous rate, you may elect to transfer up to 100% of the
monies receiving that reduced rate within 60 days of the notification of
the interest rate decrease.
o Allstate New York reserves the right to defer transfers from any fixed
account option for up to six months from the date of the request. If
required by state law, Allstate New York will pay interest on amounts
delayed more than 30 days.
o Allstate New York reserves the right to limit the number of transfers in
any contract year or to refuse any transfer request for any owner or
certain owners, in our sole discretion if:
o We believe that excessive trading by such owner or owners or a specific
transfer request or group of transfer requests may have a detrimental
effect on unit values of the sub-accounts or the share prices of the funds
or would be to the disadvantage of other contract owners; or
o One or more of the funds informs us that (a) the funds would restrict the
purchase or redemption of shares because of excessive trading or (b) the
funds believe that a specific transfer or group of transfers would have a
detrimental effect on share prices of the funds.
o You can make transfers by telephone. If you own the contract with a joint
owner, unless Allstate New York receives contrary instructions, Allstate
New York will accept instructions from either you or the other owner.
Allstate New York will use reasonable procedures to confirm that
instructions given us by telephone are genuine. If Allstate New York fails
to use such procedures, we may be liable for any losses due to unauthorized
or fraudulent instructions. Allstate New York tape records all telephone
instructions.
o You can make 12 transfers every year during the accumulation phase without
charge. We measure a year from the anniversary of the day we issued your
contract. If you make more than 12 transfers in one contract year, we will
deduct a transfer fee. The fee is 0.50% of the amount transferred.
o The minimum amount that you can transfer from a sub-account and the
standard fixed account option is $100 or, if less, the remaining value of
your investment in the sub-account or standard fixed account option.
o During the payout phase, you can only make transfers among the sub-accounts
once every six months. During the payout phrase, you cannot transfer from a
fixed amount income payment to a sub-account, but you can transfer from one
or more sub-accounts to a fixed amount income payment if income plan 3 is
in effect and the transfer occurs six months after the payout start date.
Such transfers are allowed once every 6 months.
Allstate New York reserves the right to terminate or modify the transfer
provisions described above.
Dollar Cost Averaging Program
The dollar cost averaging program allows you to systematically transfer a set
amount each month from any sub-account or fixed account option to any of the
other sub-accounts. By allocating amounts on a regular schedule as opposed to
allocating the total amount at one particular time, you may be less susceptible
to the impact of market fluctuations. The dollar cost averaging 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.
Automatic Rebalancing Program
Once your money has been allocated among the sub-accounts, the performance of
each sub-account may cause your allocation to shift. You can automatically
rebalance your contract and return it to your original percentage allocations by
selecting our automatic rebalancing program. You can tell us whether to
rebalance quarterly, semi-annually or annually. We will measure these periods
from the anniversary of the date we issued your contract. The transfer date will
be the first day after the end of the period you selected. The automatic
rebalancing program is available only during the accumulation phase. If you
participate in this program, the transfers made under the program do not count
towards the 12 transfers you can make without paying a transfer fee.
Example:
Assume that you want your initial purchase payment split among 2
sub-accounts. You want 40% to be in the Bond sub-account and 60% to be
in the Stock 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 Bond sub-account now represents 50% of your holdings
because of its increase in value. If you had chosen to have your
holdings rebalanced quarterly, on the first day of the next quarter,
Allstate New York would sell some of your units in the Bond sub-account
and use the money to buy more units in the Stock sub-account so that
the percentage allocations would again be 40% and 60% respectively.
Voting Rights
Allstate New York is the legal owner of the fund shares held by the
sub-accounts. However, Allstate New York believes that when a fund solicits
proxies in conjunction with a vote of shareholders, it is required to obtain
from you and other owners instructions as to how to vote those shares. When we
receive those instructions, we will vote all of the shares we own in proportion
to those instructions. Should we determine that we are no longer required to
comply with the above, we will vote the shares in our own right.
Substitution
Allstate New York may be required to substitute one of the funds you have
selected with another fund. We would not do this without the prior approval of
the SEC. We will give you notice of our intent to do this.
4. EXPENSES
There are charges and other expenses associated with the contracts that reduce
the return on your investment in the contract. These charges and expenses
include:
Insurance Charge
Each day, Allstate New York makes a deduction for its insurance charge. Allstate
New York does so as part of its calculation of the value of the accumulation
units and the annuity units. This charge, which we call the "mortality and
expense risk charge," is equal, on an annual basis, to 1.25% of the daily value
of the assets you have invested in the sub-accounts. This charge is for all the
insurance benefits available with your contract (e.g., 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 Allstate New York will bear the
loss. We cannot increase the charge. We assess the mortality and expense risk
charge during both during the Accumulation Phase and the Payout Phase.
Contract Maintenance Charge
During the accumulation phase, every year on the anniversary of the date when we
issued your contract, Allstate New York will deduct $30 from your contract as a
contract maintenance charge. The charge is for administrative expenses. We
cannot increase the charge. We will deduct the charge from the money market
sub-account. If there are insufficient assets in the money market sub-account,
we will deduct the charge proportionally from the remaining sub-accounts of the
variable account.
Allstate New York will not deduct the charge during the accumulation phase if,
when the deduction is to be made, the value of your contract is $50,000 or more
or if all your money is allocated to the fixed account options. During the
payout phase, we will deduct the $30 charge proportionally from each income
payment. We will waive the charge if the contract value on the payout start date
is $50,000 or more or if all payments are fixed income payments on a contract
anniversary.
If you make a complete withdrawal from your contract, we will deduct the
contract maintenance charge at that time as well.
Withdrawal Charge
During the accumulation phase, you can make withdrawals from your contract.
Allstate New York keeps track of each purchase payment. During each contract
year, you can withdraw up to the greater of earnings not previously withdrawn or
15% of your total purchase payments without charge from Allstate New York.
Otherwise, the withdrawal charge for each payment will range from 7% - 0% over 7
years. For purposes of the withdrawal charge, Allstate New York treats
withdrawals as coming from the oldest purchase payment first.
NOTE: For tax purposes, withdrawals are considered to have come from the last
money into the contract. Thus, for tax purposes, earnings are considered to come
out first.
Allstate New York uses the amounts obtained from the withdrawal charge to pay
sales commissions and other promotional or distribution expenses associated with
marketing the contracts.
Allstate New York also will waive the withdrawal charge on withdrawals taken
from qualified contracts to satisfy IRS required minimum distribution rules for
the contract.
Premium Taxes
Some states and other governmental entities (e.g., municipalities) charge
premium taxes or similar taxes. In those states, we are responsible for paying
these taxes and deduct them from the contract value. Our current practice is not
to charge anyone for these taxes until income payments begin or when a total
withdrawal occurs including payment upon death. We may some time in the future
discontinue this practice and deduct premium taxes from the purchase payments.
At the Payout Start Date, we deduct the charge for premium taxes from each
investment alternative in the proportion that the Contract owner's value in the
investment alternative bears to the total contract value.
Currently, we do not make deductions for premium taxes under the contract
because New York does not charge premium taxes on annuities.
Transfer Fee
You can make 12 free transfers every year. We measure a year from the day we
issue your contract. If you make more than 12 transfers in any one year, for
each subsequent transfer, we will deduct a transfer fee of 0.50% of the dollar
amount transferred.
If the transfer is part of the dollar cost averaging program or the automatic
rebalancing program, it will not count in determining the number of free
transfers.
Fund Expenses
The deductions from and expenses paid out of the assets of the various funds are
described in the attached prospectus for the funds.
5. ACCESS TO YOUR MONEY
You can access the money in your contract:
(1) by making a withdrawal (either a partial or a complete withdrawal)
prior to the payout start date; or
(2) by electing to receive income payments. Under most circumstances,
withdrawals can only be made during the accumulation phase.
When you make a complete withdrawal you will receive the value of the contract
on the day you made the withdrawal less any applicable withdrawal charge, and
less any contract maintenance charge (see Section 4. "Expenses" for a discussion
of the charges).
Unless you instruct Allstate New York otherwise, we will deduct any partial
withdrawal proportionately from all the sub-accounts and the fixed account
option(s) you selected. Under most circumstances, the amount of any partial
withdrawal must be at least $50. If you withdraw your entire Contract Value,
your contract will terminate.
Withdrawals may reduce the amount of the death benefit (see Section 8. "Death
Benefits").
INCOME TAXES, TAX PENALTIES AND CERTAIN RESTRICTIONS MAY APPLY TO ANY WITHDRAWAL
YOU MAKE.
Systematic Withdrawal Program
The systematic withdrawal program provides an automatic payment to you on a
monthly, quarterly, semi-annual or annual basis. INCOME TAXES MAY APPLY TO
SYSTEMATIC WITHDRAWALS.
6. PERFORMANCE
Allstate New York periodically advertises the performance of the sub-accounts.
Allstate New York will calculate performance (i.e., the percentage change in the
value of an accumulation unit) by dividing the increase (decrease) for that unit
by the value of the accumulation unit at the beginning of the period. This
performance number would reflect the deduction of the insurance charges, but not
the deduction of any applicable contract maintenance charge or withdrawal
charge. The deduction of any applicable contract maintenance charge and
withdrawal charges would reduce the percentage increase or make greater any
percentage decrease. Any advertisement also will include total return figures
that reflect the deduction of the insurance charges, contract maintenance
charges, and withdrawal charges.
For periods starting prior to the date the contracts were first offered, the
performance will be based on the historical performance of the corresponding
funds for the periods commencing from the inception dates of the funds. You
should not interpret these figures to reflect actual historical performance of
the variable account.
Allstate New York also may include in its advertising and sales materials, tax
deferred compounding charts and other hypothetical illustrations, which may
include comparisons of currently taxable and tax deferred investment programs
based on selected tax brackets.
7. DEATH BENEFIT
Distribution Upon Death Payment Provisions
Death of Owner. If you die before the payout start date, the new owner will be
the surviving owner. If there is no surviving owner, the new owner will be the
beneficiary(ies). The new owner will have the options described below.
1. If the sole new owner is your spouse:
a. Your spouse may elect, within 180 days of the date of your death, to
receive the death benefit described under "Death Benefit Amount" below
in a lump sum.
b. Your spouse may elect, within 180 days of the date of your death, to
receive an amount equal to the death benefit paid out under one of the
income plans described in Section 8 "Income Phase" below. The payout
start date must be within one year of your date of death. Income
Payments must be:
i. over the life of your spouse; or
ii. for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of your spouse; or
iii. over the life of your spouse with a guaranteed number of payments
from 5 to 30 years but not to exceed the life expectancy of your
spouse.
c. If your spouse does not elect one of the options above, then your
spouse may continue the contract in the accumulation phase as if the
death had not occurred. If the contract is continued in the
accumulation phase, the following conditions apply:
i. On the day the contract is continued, the contract value will be
the death benefit as determined at the end of the valuation
period during which we received due proof of death satisfactory
to us.
ii. The surviving spouse may make a single withdrawal of any amount
within one year of the date of death without incurring a
withdrawal charge.
iii. Before the payout start date, the death benefit of the continued
contract will be the greater of:
o the sum of all purchase payments reduced by a withdrawal
adjustment; or
o the maximum anniversary value, as described below under
"Death Benefit Amount," with the following changes:
o "issue date" is replaced by the date the contract is
continued; and
o "Initial purchase payment" is replaced with the death
benefit as determined at the end of the valuation period
during which we received due proof of death satisfactory to
us.
2. If the new owner is not your spouse but is a natural person, then the new
owner has the following options:
a. The new owner may elect, within 180 days of the date of your death, to
receive the death benefit described in "Death Benefit Amount," below,
in a lump sum.
b. The new owner may elect, within 180 days of the date of your death, to
receive an amount equal to the death benefit paid out under one of the
income plans described in the payout phase section. The payout start
date must be within one year of your date of death. Income payments
must be:
i. over the life of the new owner; or
ii. for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of the new owner; or
iii. over the life of the new owner with a guaranteed number of
payments from 5 to 30 years but not to exceed the life expectancy
of the new owner.
c. The new owner may elect to receive the settlement value payable in a
lump sum within 5 years of your date of death.
3. If the new owner is a corporation or other non-natural person:
a. The non-natural owner may elect, within 180 days of your death, to
receive the death benefit in a lump sum.
b. The non-natural owner may elect to receive the settlement value
payable in a lump sum within 5 years of your date of death.
If any new owner is a non-natural person, all new owners will be considered to
be non-natural persons for the above purposes.
If the new owner who is not your spouse does not make one of the above described
elections, the settlement value must be withdrawn by the new owner on or before
the mandatory distribution date 5 years after your date of death. Under any of
these options, all ownership rights are available to the new owner from the date
of your death to the date on which the death benefit or settlement value is
paid. We reserve the right to extend beyond 180 days the period in which a death
benefit may be elected.
Death of Annuitant. If the annuitant who is not also the owner dies prior to the
payout start date, the owner must elect an applicable option listed below. If
the option selected is 1(a) or 1(b)(ii) below, the new annuitant will be the
youngest owner, unless the owner names a different annuitant.
1. If the owner is a natural person:
a. The owner may choose to continue this contract as if the death had not
occurred; or
b. If we receive due proof of death within 180 days of the date of the
annuitant's death, then the owner may alternatively choose to:
i. receive the death benefit in a lump sum; or
ii. apply the death benefit to an income plan which must begin within
one year of the date of death.
2. If the owner is a non-natural person:
a. The non-natural owner may elect, within 180 days of the annuitant's
date of death, to receive the death benefit in a lump sum; or
b. The non-natural owner may elect to receive the settlement value
payable in a lump sum within 5 years of the annuitant's date of death.
If the non-natural owner does not make one of the above described elections, the
settlement value must be withdrawn by the non-natural owner on or before the
mandatory distribution date 5 years after the annuitant's death.
Under any of these options, all ownership rights are available to the owner from
the date of the annuitant's death to the date on which the death benefit or
settlement value is paid. We reserve the right to extend beyond 180 days the
period when we will pay the death benefit.
Death Benefit Amount
Before the payout start date, the death benefit is equal to the greatest of the
following death benefit alternatives:
(a) the contract value on the date Allstate New York determines the death
benefit; or
(b) the sum of all purchase payments reduced by a withdrawal adjustment,
as defined below; or
(c) the "maximum anniversary value,"increased by any purchase payments
made since that death benefit anniversary and reduced by a withdrawal
adjustment, described below:
On the day we issue the contract ("issue date"), the maximum anniversary value
is equal to the initial purchase payment. Thereafter, we recalculate the maximum
anniversary value when a purchase payment or withdrawal is made on a contract
anniversary as follows:
o On each contract anniversary, the maximum anniversary value is equal to the
greater of the contract value or the most recently calculated maximum
anniversary value.
o For purchase payments, the maximum anniversary value is equal to the most
recently calculated maximum anniversary value plus the purchase payment.
o For withdrawals, the maximum anniversary value is equal to the most
recently calculated maximum anniversary value reduced by the withdrawal
adjustment, described below.
In the absence of any withdrawals or purchase payments, the maximum anniversary
value will be the greatest of all contract anniversary contract values on or
prior to the date Allstate New York calculates the death benefit.
We will recalculate the maximum anniversary value until the first contract
anniversary after the 80th birthday of the oldest owner or, if the owner is not
a natural person, the 80th birthday of the oldest annuitant. After that date, we
will recalculate the maximum anniversary value only for purchase payments and
withdrawals.
Withdrawal Adjustment Amount. The withdrawal adjustment is equal to (a) divided
by (b), with the result multiplied by (c), where:
(a) = the withdrawal amount;
(b) = the contract value immediately prior to the withdrawal; and
(c) = the value of the applicable death benefit alternative
immediately prior to the withdrawal.
Allstate New York will determine the value of the death benefit as of the end of
the valuation period during which Allstate New York receives a complete request
for payment of the death benefit. A complete request includes due proof of
death, and such other documentation as Allstate New York may require in its
discretion.
8. INCOME PAYMENTS (THE PAYOUT PHASE)
You can choose to receive regular income payments during the payout phase. You
can choose the month and year in which those payments begin. We call that date
the payout start date. You can choose among three income plans.
We ask you to choose your payout start date and income option when you purchase
the contract. You can change either at any time before the payout start date
with 30 days written notice to us. Your payout start date cannot be any earlier
than one month after you buy the contract. Income payments must begin by the
annuitant's 90th birthday. The annuitant is the person whose life we look to
when we make income payments.
You can choose whether to receive fixed or variable income payments or a
combination of both.
If you choose to receive variable income payments, the dollar amount of your
payments will depend primarily upon 3 things:
1) the value of your contract in the sub-account(s) on the annuity date;
2) the 3% assumed investment rate used in the annuity table for the contract
(note, we reserve the right to offer other assumed investment rates); and
3) the performance of the sub-accounts you selected. If the actual performance
exceeds the 3% assumed rate, your annuity payments will increase.
Similarly, if the actual performance is less than 3%, your annuity payments
will decrease.
If you choose to receive fixed income payments, the dollar amount of your
payments will be fixed for the duration of the income plan. We calculate the
amount of your payments by applying the portion of the contract value in the
fixed account on the payout start date, 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.
You can choose one of the following income plans or any other income plan
acceptable to Allstate New York. After income payments begin, you cannot change
the income plan.
Income Plan 1. Life Income with Guaranteed Payments. Under this option, we
will make payments for as long as the annuitant is alive. 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.
Income Plan 2. Joint and Survivor Life Income with Guaranteed Payments.
Under this option, 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.
Income Plan 3. Guaranteed Number of Payments. Under this option, 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.
The length of any guaranteed payment period under your selected income plan
generally will affect the dollar amounts of each variable 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 variable income payments will be greater
than the variable income payments made under the same income plan with a minimum
specified period for guaranteed payments.
If you do not choose an income plan at the time you purchase the contract, we
will assume that you selected income plan 1 which will provide a life annuity
with 10 years of guaranteed payments.
We will make income payments monthly unless you have less than $2,000 to apply
to an income plan. In that case, Allstate New York may terminate your contract
and provide your income payment in a single lump sum. Likewise, if your income
payments would be less than $20 a month, Allstate New York may change the
frequency of payments so that your income payments are at least $20, or Allstate
New York may terminate the contract and provide your income payment in a single
lump sum.
9. TAXES
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 owner is a natural person,
(2) the investments of the variable account are "adequately diversified"
according to Treasury Department regulations, and
(3) Allstate 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 this 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 options. Also, you may be able to transfer
among investment options 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 five 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 owner's death,
o attributable to the 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 nonqualified 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 nonqualified 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 an 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 nonqualified 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 owner attains age 59 1/2;
(2) made as a result of the 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.
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 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 12/31/88, and all earnings on salary reduction
contributions, may be made only on or after the date the employee:
o attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
o 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 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 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.
10. OTHER INFORMATION
Allstate New York
Allstate New York is the issuer of the Contract. Allstate 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 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 New York is currently licensed to operate in New York. Our home office
is located in Farmingville, New York. Our servicing center is in Northbrook,
Illinois.
Allstate New York is a wholly owned subsidiary of Allstate Life Insurance
Company ("Allstate Life"), a stock life insurance company incorporated under the
laws of the State of Illinois. Allstate Life 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 New York the financial performance rating of A+(g).
Standard & Poor's Insurance Rating Services assigns AA+ (Excellent) to Allstate
New York's claims-paying ability 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.
Variable Account
Allstate 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 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 New York.
The variable account consists of __ sub-accounts, each of which invests in a
corresponding fund. We may add new 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 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.
Distributor
Allstate New York _________Company ("xxxxxx"), 3100 Sanders Road, Northbrook,
Illinois, acts as the distributor of the contracts. xxxxxx is an affiliate of
Allstate New York.
Commissions will be paid to broker-dealers who sell the contracts.
Broker-dealers will be paid commissions up to 8.0% of purchase payments.
Sometimes, Allstate New York also pays the broker-dealer a persistency bonus in
addition to the standard commissions.
Ownership
Owner. You, as the owner of the contract, have all the rights under the
contract. Prior to the payout start date, the owner is the person designated at
the time the contract is issued, unless changed.
Joint Owner. Joint owners can own the contract. Upon the death of either joint
owner, the surviving owner will be the designated beneficiary. We will treat any
other beneficiary designated at the time the contract was issued or at a later
date as a contingent beneficiary unless otherwise indicated.
Beneficiary
The beneficiary is the person(s) or entity you name to receive any death
benefit. The beneficiary is named at the time the contract is issued unless
changed at a later date. Unless you name an irrevocable beneficiary, you can
change the beneficiary at any time before you die.
Assignment
You may not assign an interest in the contract as collateral or security for a
loan.
Suspension of Payments or Transfers
Allstate New York may be required to suspend or postpone payments for
withdrawals or transfers for any period when:
1. the New York Stock Exchange is closed (other than customary weekend and
holiday closings);
2. trading on the New York Stock Exchange is restricted;
3. an emergency exists as a result of which disposal of shares of the funds is
not reasonably practicable or Allstate New York cannot reasonably value the
shares of the variable funds;
4. during any other period when the Securities and Exchange Commission, by
order, so permits for the protection of owners.
Allstate New York has reserved the right to defer payment for a withdrawal or
transfer from the fixed account options for the period permitted by law but not
for more than six months.
Modification
Allstate New York may not modify the contract without your consent except to
make the contract meet the requirements of the Investment Company Act of 1940,
or to make the contract comply with any changes in the Internal Revenue Code or
to make any changes required by the Code or by any other applicable law.
Year 2000
Allstate 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 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 New York believes
that many of its counterparties and suppliers also have Year 2000 Issues that
could affect Allstate New York. In 1995, Allstate New York began 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 New York actively working with its major external
counterparties and suppliers to assess their compliance efforts and Allstate New
York's exposure to them. Allstate 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.
Financial Statements
The financial statements of Allstate New York appear in the Statement of
Additional Information. As of the date of the prospectus, the sub-accounts
available under the contracts had not commenced operations.
<PAGE>
Allstate Life Insurance Company of New York
Attn: Variable Products
P.O. Box xxxxx
Palatine, Illinois xxxxx-xx
Please send me, at no charge, the Statement of Additional Information dated May
1, 1999, for "The Putnam Allstate Advisor Variable Annuity" issued by Allstate
New York.
(Please print or type and fill in all information)
Name
Address
City State Zip Code
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
PAGE
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
REINVESTMENT
THE CONTRACT
Purchase of Contracts
Performance Data
INCOME PAYMENTS
Calculation of Variable Annuity Unit Values
GENERAL MATTERS
Incontestability
Settlements
Safekeeping of the Variable Account's Assets
FEDERAL TAX MATTERS
Introduction
Taxation of Allstate New York
Exceptions to the Non-Natural Owner Rule
IRS Required Distribution at Death Rules
Qualified Plans
Types of Qualified Plans
EXPERTS
LEGAL MATTERS
SALES COMMISSIONS
FINANCIAL STATEMENTS
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
PUTNAM ALLSTATE ADVISOR VARIABLE ANNUITY
Offered By
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
THROUGH ITS SEPARATE ACCOUNT A
One Allstate Drive
Farmingville, New York 11738-9075
1-800/xxx-xxxx
This Statement of Additional Information supplements the information in the
prospectus, dated May 1, 1999, for the Putnam Allstate Advisor Variable Annuity
contract. You may obtain a copy of the prospectus by writing or calling the
address or telephone number listed above. This Statement of Additional
Information uses the same defined terms as the prospectus.
THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT A PROSPECTUS AND SHOULD BE READ
ONLY IN CONJUNCTION WITH THE PROSPECTUS FOR THE CONTRACT
Dated May 1, 1999
<PAGE>
TABLE OF CONTENTS
PAGE
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
REINVESTMENT
THE CONTRACT
Purchase of Contracts
Performance Data
INCOME PAYMENTS
Calculation of Variable Annuity Unit Values
GENERAL MATTERS
Incontestability
Settlements
Safekeeping of the Variable Account's Assets
FEDERAL TAX MATTERS
Introduction
Taxation of Allstate New York
Exceptions to the Non-Natural Owner Rule
IRS Required Distribution at Death Rules
Qualified Plans
Types of Qualified Plans
EXPERTS
LEGAL MATTERS
SALES COMMISSIONS
FINANCIAL STATEMENTS
<PAGE>
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
Allstate New York may, subject to any legal limits, add funds, delete funds, or
substitute shares of another fund, or of another open-end, registered investment
company, if the shares of a fund are no longer available for investment, or if,
in Allstate New York's judgment, investment in any fund would become
inappropriate in view of the purposes of the variable account. We will not
substitute any funds without first notifying contract owners and obtaining the
SEC's approval, to the extent such notification and approval is legally
required. 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 owners.
Allstate New York also may establish additional sub-accounts or series of
sub-accounts of the variable account. Each additional sub-account would purchase
shares in a new fund. New sub-accounts may be established when, in the sole
discretion of Allstate New York, marketing needs or investment conditions
warrant. Any new sub-accounts offered in conjunction with the contract will be
made available to existing owners on a basis to be determined by Allstate New
York. Allstate New York may also eliminate one or more sub-accounts if, in its
sole discretion, marketing, tax or investment conditions so warrant.
In the event of any such substitution or change, Allstate New York may, by
appropriate endorsement, make such changes in the contract as may be necessary
or appropriate to reflect such substitution or change. If deemed to be in the
best interests of persons having voting rights under the policies, the variable
account may be operated as a management company under the Investment Company Act
of 1940 or it may be deregistered under such Act in the event such registration
is no longer required.
REINVESTMENT
All dividends and capital gains distributions from the funds are automatically
reinvested in shares of the distributing fund at their net asset value.
THE CONTRACT
Purchase of Contracts
The contracts are offered to the public through brokers as well as banks
licensed under the federal securities laws and state insurance laws. The
contracts are distributed through the principal underwriter for the variable
account, "_______________", an affiliate of Allstate New York. The offering of
the contracts is continuous and Allstate New York does not anticipate
discontinuing the offering of the contracts. However, Allstate New York reserves
the right to discontinue the offering of the contracts.
Performance Data
From time to time the variable account may publish advertisements containing
performance data relating to its sub-accounts. The performance data for the
sub-accounts (other than for the money market sub-account) will always be
accompanied by total return quotations. Performance figures used by the variable
account are based on actual historical performance of its sub-accounts or the
funds for specified periods, and the figures are not intended to indicate future
performance. As of the date of the prospectus and this Statement of Additional
Information, the sub-accounts had not commenced operations; therefore, there is
no actual performance data for the sub-accounts.
Standardized Total Returns
A sub-account's "average annual total return" represents an annualization of the
sub-account's total return over a particular period. We compute it 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 sub-account's operations, if shorter than any of the foregoing. The average
annual total return is obtained by dividing the ending redeemable value, after
deductions for any withdrawal charges or contract maintenance charges imposed on
the contracts by the variable account, by the initial hypothetical $1,000
purchase payment, taking the "n"th root of the quotient (where "n" is the number
of years in the period) and subtracting 1 from the result.
The withdrawal charges assessed upon redemption are computed as follows: the
free withdrawal amount is not assessed a withdrawal charge. Withdrawal charges
are charged on the amount of redemption equal to the purchase payment, reduced
by the amount of the free withdrawal amount, if any. The remaining amount of the
redemption, if any, is not assessed a withdrawal charge. The withdrawal charge
schedule specifies rates based on the number of complete years since each
purchase payment was made. The contract maintenance charge ($30 per contract)
used in the total return calculation is normally prorated using the following
method: The total amount of annual contract fees collected during the year is
divided by the total average net assets of all the sub-accounts. The resulting
percentage is then multiplied by the ending contract value.
Non-Standardized Total Returns
From time to time, sales literature or advertisements also may quote average
annual total returns that do not reflect the withdrawal charge. These are
calculated in exactly the same way as the average annual total returns described
above, except that the ending redeemable value of the hypothetical account for
the period is replaced with an ending value for the period that does not take
into account any charges on amounts surrendered. In addition, the variable
account 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 that may be
imposed on the contracts by the variable account 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).
Hypothetical Historical Total Returns
The variable account also may advertise yield and total return for periods prior
to the date that the variable account commenced operations. For periods prior to
the date the variable account commenced operations, performance information for
the sub-accounts will be calculated based on the performance of the funds and
the assumption that the sub-accounts were in existence for the same periods as
those of the funds, with a level of charges equal to those currently assessed
against the sub-accounts.
The annualized hypothetical historical total returns for the sub-accounts as of
the quarter ended March 30, 1999 are presented below:
(to be provided in pre-effective amendment)
The variable account also may advertise the performance of the sub-accounts
relative to certain performance rankings and indexes compiled by independent
organizations, such as: (a) Lipper Analytical Services, Inc.; (b) the Standard &
Poor's 500 Composite Stock Price Index ("S & P 500"); (c) A.M. Best Company; (d)
Bank Rate Monitor; and (e) Morningstar.
INCOME PAYMENTS
Calculation of Variable Annuity Unit Values
The amount of the first income payment is calculated by applying the contract
value allocated to each sub-account, less any applicable charge deducted at this
time, to the income payment tables in the contract. The first variable annuity
income payment is divided by the sub-account's then current annuity unit value
to determine the number of annuity units upon which later income payments will
be based. Variable annuity income payments after the first will be equal to the
sum of the number of annuity units determined in this manner for each
sub-account times the then current annuity unit value for each respective
sub-account.
Annuity units in each sub-account are valued separately and annuity unit values
will depend upon the investment experience of the particular portfolios in which
the sub-account invests. The value of the annuity unit for each sub-account at
the end of any valuation period is calculated by:
(a) 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
(b) dividing the product by the sum of 1.0 plus the assumed investment
rate for the 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 annuity income payment, and is
at an effective annual rate which is disclosed in the contract.
The amount of the first income payment paid under an income plan is determined
using the interest rate and mortality table disclosed in the contract. Due to
judicial or legislative developments regarding the use of tables which do not
differentiate on the basis of sex, different annuity tables may be used.
GENERAL MATTERS
Incontestability
We will not contest the contract after we issue it.
Settlements
Due proof of the owner(s) death (or annuitant's death if there is a non-natural
owner) must be received prior to settlement of a death claim.
Safekeeping of the Variable Account's Assets
Allstate New York holds title to the assets of the variable account. The assets
are kept physically segregated and held separate and apart from Allstate New
York's general corporate assets. Records are maintained of all purchases and
redemptions of the fund shares held by each of the sub-accounts.
The funds do not issue certificates and, therefore, Allstate New York holds the
variable account's assets in open account in lieu of stock certificates. See the
Trust prospectus for a more complete description of the custodians of the funds.
FEDERAL TAX MATTERS
Introduction
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 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 New York
Allstate New York is taxed as a life insurance company under Part I of
Subchapter L of the Internal Revenue Code. The variable account is not an entity
separate from Allstate New York, and its operations form a part of Allstate New
York. As a consequence, the variable account 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 current federal tax law, Allstate
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. Generally, reserves are amounts that
Allstate New York is legally required to accumulate and maintain in order to
meet future obligations under the contracts. Allstate New York does not
anticipate that it will incur any federal income tax liability attributable to
the variable account. Therefore, we do not intend to make provisions for any
such taxes. If we are taxed on investment income or capital gains of the
variable account, then we may impose a charge against the variable account in
order to make provision for such taxes.
Exceptions to the Non-natural Owner Rule
Generally, contracts held by a non-natural owner are not treated as annuity
contracts for federal income tax purposes, unless one of several exceptions
applies. Contracts will generally be treated as held by a natural person if the
nominal owner is a trust or other entity that holds the contract for the benefit
of a natural person. However, this special exception will not apply in the case
of an employer who is the nominal owner of a contract under a non-qualified
deferred compensation arrangement for 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 date of 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
To qualify as an annuity contract for federal income tax purposes, a
nonqualified 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 must be distributed within five years after the date
of the owner's death.
The five year requirement is satisfied if:
(1) any portion of the owner's interest which is payable to 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
(2) the distributions begin within one year of the owner's death.
Qualified Plans
This contract may be used with several types of qualified plans. The tax rules
applicable to participants in qualified plans vary according to the type of plan
and the terms and conditions of the plan. Qualified plan participants, and
owners, annuitants and beneficiaries under the contract may be subject to the
terms and conditions of the qualified plan regardless of the terms of the
contract.
Types of Qualified Plans
IRAs
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement plan known as an IRA. IRAs 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 IRA. An IRA generally may not
provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid or the contract value. The contract provides a
death benefit that in certain situations, may exceed the greater of the payments
or the contract value. If the IRS treats the death benefit as violating the
prohibition on investment in life insurance contracts, the contract would not
qualify as an IRA.
Roth IRAs
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement plan known as a Roth IRA. Roth IRAs
are subject to limitations on the amount that can be contributed. In certain
instances, distributions from Roth IRAs are excluded from gross income. Subject
to certain limits, a traditional Individual Retirement Account or annuity may be
converted or "rolled over" to a Roth IRA. The taxable portion of a conversion or
rollover distribution is included in gross income, but is exempt 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' IRAs if certain criteria
are met. Under these plans the employer may, within 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
Savings Incentive Match Plans for Employees (SIMPLE Plans)
Sections 408(p) and 401(k) of the Tax Code allow employers with 100 or fewer
employees to establish SIMPLE 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 Tax 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 contracts for them. Subject to certain
limitations, a Section 403(b) plan allows an employer to exclude the purchase
payments from the employees' gross income. A 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:
o the date the employee attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
o 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 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 Tax Code permit corporate employers to
establish various types of tax favored retirement plans for employees. The Tax
Code permits self-employed individuals to establish tax favored retirement plans
for themselves and their employees. Such retirement plans may permit the
purchase of contracts 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 income taxes. The employees must be participants in an eligible deferred
compensation plan. Employees with contracts under the plan are considered
general creditors of the employer. The employer, as owner of the contract, has
the sole right to the proceeds of the contract. Generally, under the non-natural
owner rules, 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 included in the employees' gross income until distributed
from the plan. However, all compensation deferred under a 457 plan must remain
the sole property of the employer. As property of the employer, the assets of
the plan are subject only to the claims of the employer's general creditors,
until such time as the assets become available to the employee or a beneficiary.
EXPERTS
The financial statements of Allstate New York appearing in this Statement of
Additional Information (which is incorporated by reference in this prospectus
have been audited by ________________, (address), 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.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate New York
on certain federal securities laws matters. All matters of New York law
pertaining to the contracts, including the validity of the contracts and
Allstate 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 New
York.
SALES COMMISSIONS
Commissions paid may vary, but in the aggregate are not anticipated to exceed
7.0% of any purchase payment. In addition, under certain circumstances, Allstate
New York may pay certain sellers of the contracts a persistency bonus which will
take into account, among other things, the length of time purchase payments have
been held under a contract and the amount of purchase payments.
FINANCIAL STATEMENTS
The financial statements of Allstate New York begin on Page F-1 of this
Statement of Additional Information. The financial statements of the Allstate
Life of New York Separate Account A are not included herein because the
sub-accounts had not commenced operations as of the date of the prospectus and
this Statement of Additional Information.
<PAGE>
PART C
OTHER INFORMATION
24A. FINANCIAL STATEMENTS
Allstate Life Insurance Company of New York Financial Statements and Financial
Schedule (to be filed by amendment)
24B. EXHIBITS
Unless otherwise indicated, the following exhibits, which correspond to those
required by Item 24(b) of Form N-4, are filed herewith:
(1) 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*
(2) Not Applicable
(3) Underwriting Agreement***
(4) Form of Contract
(5) Form of application for a Contract***
(6) (a) Certificate of Incorporation of Allstate Life Insurance Company of
New York**
(b) By-laws of Allstate Life Insurance Company of New York**
(7) Not applicable
(8) Participation Agreement***
(9) Form of opinion of Michael J. Velotta, Vice President, Secretary and
General Counsel of Allstate Life Insurance Company of New York***
(10) (a) Consent of Accountants***
(b) Consent of Attorneys
(11) Not applicable
(12) Not applicable
(13) Performance Data Calculations***
(14) Not applicable
(99) Powers of Attorney**,****
* Incorporated herein by reference to Registrant's N-4 Registration Statement
(File No. 33-65381), as amended December 26, 1995.
** Incorporated herein by reference to Registrant's Form N-4 Registration
Statement (File No. 33-65381), as amended September 20, 1996.
*** To be filed by pre-effective amendment.
**** Power of Attorney of Thomas J. Wilson, II filed herewith.
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
NAME AND PRINCIPAL POSITION AND OFFICE WITH
BUSINESS ADDRESS DEPOSITOR OF THE ACCOUNT
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 and Chief Operations Officer
Cleveland Johnson, Jr. Director
Gerard F. McDermott Director
Joseph P. McFadden Director
Kenneth R. O'Brien Director
Timothy H. Plohg Director and Vice President
John R. Raben, Jr. Director
Sally A. Slacke Director
Kevin R. Slawin Director and Vice President
Patricia W. Wilson Director
Karen C. Gardner Vice President
Peter H. Heckman Vice President
Thomas A. McAvity, Jr. Vice President
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
Dorothy E. Even Assistant Vice President
John M. Goense Assistant Vice President
Judith P. Greffin Assistant Vice President
Keith A. Hauschildt Assistant Vice President and Controller
Ronald A. Johnson Assistant Vice President
Kenneth S. Klimala 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
Patricia W. Wilson Assistant Vice President
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Mary J. McGinn Assistant Secretary
Brenda D. Sneed Assistant Secretary and Assistant
General Counsel
Ralph A. Bergholtz Assistant Treasurer
Mark A. Bishop Assistant Treasurer
Robert B. Bodett Assistant Treasurer
Barbra S. Brown Assistant Treasurer
Nancy M. Bufalino Assistant Treasurer
Adrian Corbiere Assistant Treasurer
Peter S. Horos Assistant Treasurer
Thomas C. Jensen Assistant Treasurer
David L. Kocourek Assistant Treasurer
Daniel C. Leimbach Assistant Treasurer
Beth K. Marder Assistant Treasurer
Ronald A. Mendel Assistant Treasurer
R. Steven Taylor Assistant Treasurer
Louise J. Walton Assistant Treasurer
Jerry D. Zinkula Assistant Treasurer
The principal business address of the foregoing officers and directors is 3100
Sanders Road, Northbrook, Illinois 60062.
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
Information in response to this item is incorporated herein by reference to the
Form 10-K Annual Report of The Allstate Corporation (File #1-11840).
27. NUMBER OF CONTRACT OWNERS
As of the date hereof the offering of the contracts described in this
registration statement had not commenced.
28. INDEMNIFICATION
The by-laws of both Allstate Life Insurance Company of New York (Depositor) and
____________ (Distributor), provide for the indemnification of its directors,
officers and controlling persons, against expenses, judgements, 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.
29A. RELATIONSHIP OF PRINCIPAL UNDERWRITER TO OTHER INVESTMENT COMPANIES
To be filed by amendment.
29B. PRINCIPAL UNDERWRITER
Name and Principal Business Positions and Offices
Address of Each Such Person with Underwriter
To be filed by amendment.
29C. COMPENSATION OF PRINCIPLE UNDERWRITER
To be filed by amendment.
30. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Allstate Life Insurance Company of New York, is located at 3100
Sanders Road, Northbrook, Illinois 60062
The Distributor, _______________, is located at ______________________.
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 promises 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 application to
purchase a contract offered by the prospectus, a space that an applicant can
check to request a statement of additional information or a post card or similar
written communication affixed to or included in the prospectus 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.
33. REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL
REVENUE CODE
Allstate Life Insurance Company of New York ("Allstate 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 ("ACLI") and
that the provisions of paragraphs 1-4 of the no-action letter have been complied
with.
34. REPRESENTATION REGARDING CONTRACT EXPENSES
Allstate New York represents that the fees and charges deducted under the group
and individual variable annuity contracts described in 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 New York.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, Registrant, Allstate Life of New York Separate Account A, has caused
this 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 5th day of March, 1999.
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
(REGISTRANT)
BY: ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(DEPOSITOR)
(SEAL)
Attest: /s/BRENDA D. SNEED By: /s/MICHAEL J. VELOTTA
------------------ ---------------------
Brenda D. Sneed Michael J. Velotta
Assistant Secretary Vice President, Secretary and
and Assistant General Counsel General Counsel
As required by the Securities Act of 1933, this Registration Statement has been
duly signed below by the following Directors and Officers of Allstate Life
Insurance Company of New York on the 5th day of March, 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
/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
*/KEITH A. HAUSCHILDT Assistant Vice President and Controller
- --------------------- (Principal Accounting Officer)
Keith A. Hauschildt
*/TIMOTHY H. PLOHG Vice President and Director
- ------------------
Timothy H. Plohg
*/MARCIA D. ALAZRAKI Director
- -------------------
Marcia D. Alazraki
*/CLEVELAND JOHNSON, JR. Director
- ------------------------
Clevelnd Johnson, Jr.
*/GERALD F. MCDERMOTT Director
- ----------------------
Gerald F. McDermott
*/JOSEPH P. MCFADDEN Director
- ---------------------
Joseph P. McFadden
*/JOHN R. RABEN, JR. Director
- --------------------
John R. Raben, Jr.
*/SALLY A. SLACKE Director
- -----------------
Sally A. Slacke
*/CASEY J. SYLLA Chief Investment Officer
- ----------------
Casey J. Sylla
*/ By Michael J. Velotta, pursuant to Powers of Attorney, previously filed.
<PAGE>
EXHIBIT INDEX
(4) Form of Contract
(10)(a) Consent of Attorneys
(99) Powers of Attorney
Allstate Life Insurance
Company Of New York
A Stock Company
Home Office: One Allstate Drive, Farmingville, New York 11738
- ------------------------------------------------------------------------------
Flexible Premium Deferred Variable Annuity Certificate
This Certificate is issued to customers of participating financial services
corporations according to the terms of Master Policy number 64895004 issued by
Allstate Life Insurance Company of New York to the Trustee of the Financial
Services Group Insurance Trust. The Trustee of the Financial Services Group
Insurance Trust is called the Master Policyholder. This Certificate is issued in
the state of New York and 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. A Mortality
and Expense Risk Charge equivalent to an annualized charge of 1.25% will be
deducted daily from the Variable Account. A $30 Certificate Maintenance Charge
will be deducted from the Variable Account on each Certificate Anniversary. The
smallest annual rate of net investment return on the Variable Account assets
required to keep Variable Amount Income Payments from decreasing is 4.25%.
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 and are not
guaranteed as to dollar amount.
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 Allstate Life Insurance Company of New York at
(800) 692-4682.
Secretary Chairman and Chief Executive Officer
NYLU448
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<PAGE>
TABLE OF CONTENTS
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THE PERSONS INVOLVED..........................................................3
ACCUMULATION PHASE............................................................3
PAYOUT PHASE.................................................................10
INCOME PAYMENT TABLES........................................................12
GENERAL PROVISIONS...........................................................14
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<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. You may name a new
Annuitant only upon the death of the current Annuitant. Once we have received a
satisfactory written request for a change of Owner or Beneficiary, 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.
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:
o Owner as used in this Certificate refers to all persons named as Owners,
unless otherwise indicated;
o any request to exercise ownership rights must be signed by all Owners; and
o on the death of any person who is an Owner, the surviving person(s) named
as Owner will continue as Owner.
Annuitant The Annuitant is the person named on the Annuity Data Page. The
Annuitant must be a living individual.
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:
o your spouse if living; otherwise
o your children equally if living; otherwise
o your estate.
The Beneficiary may become the Owner under the circumstances described in the
Owner provision above.
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
NYLU448
<PAGE>
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.
Investment Alternatives The "Investment Alternatives" are the subaccounts of the
Variable Account and the Fixed Account Options. We reserve the right to limit
the availability of the Investment Alternatives for new investments.
Purchase Payments The initial payment is shown on the Annuity Data Page. You may
make subsequent purchase payments during the Accumulation Phase. We may limit
the amount of each purchase payment that we will accept to a minimum of $500 and
a maximum of $1,000,000.
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.
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 Subaccounts The Variable Account is divided into subaccounts. Each
subaccount invests solely in the shares of the mutual fund underlying that
subaccount.
Fixed Account Options The Fixed Account Options are the Standard Fixed Account
and the Twelve-Month Dollar Cost Averaging Fixed Account.
Standard Fixed Account Money in the Standard Fixed Account will earn interest at
the current rate in effect at the time of allocation or transfer to the Standard
Fixed Account for the guarantee period. We will offer a one year guarantee
period. Other guarantee periods will be offered at our discretion. Subsequent
renewal dates will be on anniversaries of the first renewal date. After the
initial guarantee period, a renewal rate will be declared. The interest rate for
the Standard Fixed Account will never be less than the minimum guaranteed rate
shown on the Annuity Data Page.
Twelve-Month Dollar Cost Averaging Fixed Account Money in the Twelve-Month
Dollar Cost Averaging Fixed Account will earn interest at the annual rate in
effect at the time of allocation to the Twelve-Month Dollar Cost Averaging Fixed
Account. Each purchase payment and associated interest in the Twelve-Month
Dollar Cost Averaging Fixed Account must be transferred to subaccounts of the
Variable Account in equal monthly installments within the twelve-month transfer
period. If you discontinue the Twelve-Month Dollar Cost Averaging Program before
the end of the transfer period, the remaining balance in the Twelve-Month Dollar
Cost Averaging Fixed Account will be transferred to the money market subaccount
unless you request a different Investment Alternative. No amount may be
transferred into the Twelve-Month Dollar Cost Averaging Fixed Account. The
interest rate for the Twelve-Month Dollar Cost Averaging Fixed Account will
never be less than the minimum guaranteed rate shown on the Annuity Data Page.
NYLU448
<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 allocated to the Fixed Account Options from the issue date. We
will credit interest to subsequent purchase payments allocated to the Fixed
Account Options from the date we receive them at a rate declared by us. We will
credit interest to transfers to the Standard Fixed Account 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 among
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 transfer fee of .50% of the amount transferred. Transfers are subject
to the following restrictions:
o No amount may be transferred into the Twelve-Month Dollar Cost Averaging
Fixed Account.
o The maximum amount transferable from the Standard Fixed Account during any
Certificate Year is the greater of 30% of the Standard Fixed Account
balance as of the last Certificate Anniversary or the greatest of any prior
transfer from the Standard Fixed Account. This limitation does not apply to
Dollar Cost Averaging. However, if any interest rate is renewed at a rate
at least one percentage point less than the previous rate, the Certificate
Owner may elect to transfer up to 100% of the Funds receiving that reduced
rate within 60 days of the notification of the interest rate decrease. The
Company reserves the right to defer transfers from the Standard Fixed
Account for up to six months from the date of request.
o The minimum amount that may be transferred from the Standard Fixed Account
or a Subaccount of the Variable Account is $100; if the total amount
remaining in the Standard Fixed Account or the Subaccount of the Variable
Account after a transfer would be less than $100, the entire amount may be
transferred. These limitations do not apply to the Twelve-Month Dollar Cost
Averaging Fixed Account.
o We reserve the right to limit the number of transfers in any Certificate
Year or to refuse any transfer request for an Owner or certain Owners if,
in our sole discretion, we believe that:
o excessive trading by such Owner or Owners or a specific transfer request or
group of transfer requests may have a detrimental effect on Unit Values or
the share prices of the underlying mutual funds or would be to the
disadvantage of other Certificate Owners; or
o we are informed by one or more of the underlying mutual funds that the
purchase or redemption of shares is to be restricted because of excessive
trading or a specific transfer or group of transfers is deemed to have a
detrimental effect on share prices of affected underlying mutual funds.
Such restrictions may be applied in any manner which is reasonably designed
to prevent any use of the transfer right which is considered by us to be to
the disadvantage of the other Certificate Owners.
We reserve the right to waive the transfer restrictions contained in this
Certificate.
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:
o the number of Accumulation Units you hold in each subaccount of the
Variable Account multiplied by the Accumulation Unit Value for that
subaccount on the most recent Valuation Date; plus
o the total value you have in the Fixed Account Options.
NYLU448
<PAGE>
If you withdraw the entire Certificate Value, you may receive an amount less
than the Certificate Value because 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
subaccount of the Variable Account are used to purchase Accumulation Units in
that subaccount. The Accumulation Unit Value for each subaccount 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 subaccount's Net
Investment Factor for the Valuation Period. The Accumulation Unit Values may go
up or down. Additions or transfers to a subaccount of the Variable Account will
increase the number of Accumulation Units for that subaccount. Withdrawals or
transfers from a subaccount of the Variable Account and Certificate Maintenance
Charges will decrease the number of Accumulation Units for that subaccount.
Net Investment Factor For each Variable Subaccount, the "Net Investment Factor"
for a Valuation Period is equal to:
o The sum of:
o the net asset value per share of the mutual fund underlying the subaccount
determined at the end of the current Valuation Period, plus
o the per share amount of any dividend or capital gain distributions made by
the mutual fund underlying the subaccount during the current Valuation
Period.
o Divided by the net asset value per share of the mutual fund underlying the
subaccount determined as of the end of the immediately preceding Valuation
Period.
o The result is reduced by the Mortality and Expense Risk Charge
corresponding to the portion of the current calendar year that is in the
current Valuation Period.
Charges The charges for this Certificate include 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.
Mortality and Expense Risk Charge The annualized Mortality and Expense Risk
Charge will never be greater than 1.25%. (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 deducted only from the subaccounts of the
Variable Account. The charge will be deducted from the money market subaccount;
if the money market subaccount has insufficient funds to cover the Certificate
Maintenance Charge, the balance will be deducted on a pro-rata basis from each
of the other subaccounts of the Variable Account in the proportion that your
value in each bears to your total value in all subaccounts of the Variable
Account, excluding the money market subaccount. 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 $30
per Certificate Year. The Certificate Maintenance Charge will be waived if the
Certificate Value is greater than $50,000 or if all money is allocated to the
Fixed Account Options on the Certificate anniversary. The Company reserves the
right to waive the Certificate Maintenance Charge.
NYLU448
<PAGE>
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.
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 and/or 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 the greater of earnings not previously withdrawn or 15% of
purchase payments. Each Certificate Year, you may withdraw the Preferred
Withdrawal Amount without any Withdrawal Charge. Any Preferred Withdrawal Amount
which is not withdrawn during a Certificate 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% 7% 6% 5% 4% 3% 2% 0%
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.
For each purchase payment withdrawal, the "Payment Year" in the table is
measured from the date we received the purchase payment. 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.
Death of Owner If you die prior to the Payout Start Date, the new Owner will be
the surviving Owner. If there is no surviving Owner, the new Owner will be the
Beneficiary(ies). The new Owner will have the options described below.
1. If the sole new Owner is your spouse:
a. Your spouse may elect, within 180 days of the date of your death, to
receive the Death Benefit described below in a lump sum.
b. Your spouse may elect, within 180 days of the date of your death, to
receive an amount equal to the Death Benefit paid out under one of the
Income Plans described in the Payout Phase section. The Payout Start
Date must be within one year of your date of death. Income Payments
must be:
NYLU448
<PAGE>
i. over the life of your spouse; or
ii. for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of your spouse; or
iii. Over the life of your spouse with a guaranteed number of payments
from 5 to 30 years but not to exceed the life expectancy of your
spouse.
c. If your spouse does not elect one of the options above, then your
spouse 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:
o 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.
o The surviving spouse may make a single withdrawal of any amount
within one year of the date of death without incurring a
Withdrawal Charge.
o Prior to the Payout Start Date, the Death Benefit of the
continued Certificate will be the greater of:
o the sum of all purchase payments reduced by a withdrawal
adjustment, as defined in the Death Benefit provision; or
o the Certificate Value on the date we determine the Death Benefit;
or
o the Maximum Anniversary Value, as defined in the Death Benefit
provision, with the following changes:
o "Date of Issue" is replaced by the date the Certificate is
continued; and
o "Initial purchase payment" is replaced with the Death Benefit as
determined at the end of the Valuation Period during which we
received due proof of death.
2. If the new Owner is not your spouse but is a Natural Person, then this new
Owner has the following options:
a. The new Owner may elect, within 180 days of the date of your death, to
receive the death benefit described below in a lump sum.
b. The new Owner may elect, within 180 days of the date of your death, to
receive an amount equal to the Death Benefit paid out under one of the
Income Plans described in the Payout Phase section. The Payout Start
Date must be within one year of your date of death. Income Payments
must be:
i. over the life of the new Owner; or
ii. for a guaranteed number of payments from 5 to 30 years but not to
exceed the life expectancy of the new Owner; or
iii. Over the life of the new Owner with a guaranteed number of
payments from 5 to 30 years but not to exceed the life expectancy
of the new Owner.
c. The new Owner may elect to receive the Settlement Value payable in a
lump sum within 5 years of your date of death.
NYLU448
<PAGE>
3. If the new Owner is a corporation or other non-Natural Person:
a. The non-natural Owner may elect, within 180 days of your death, to
receive the Death Benefit in a lump sum.
b. The non-natural Owner may elect to receive the Settlement Value
payable in a lump sum within 5 years of your date of death.
If any new Owner is a non-Natural Person, all new Owners will be considered to
be be non-Natural Persons for the above purposes.
If the new Owner who is not your spouse does not make one of the above described
elections, the Settlement Value must be withdrawn by the new Owner on or before
the mandatory distribution date 5 years after your date of death. Under any of
these options, all ownership rights are available to the new Owner from the date
of your death to the date on which the Death Benefit or Settlement Value is
paid. We reserve the right to extend beyond 180 days the period when we will pay
the Death Benefit.
Death of Annuitant If the Annuitant who is not also the Owner dies prior to the
Payout Start Date, the Owner must elect an applicable option listed below. If
the option selected is 1(a) or 1(b)(ii) below, the new Annuitant will be the
youngest Owner, unless the Owner names a different Annuitant.
1. If the Owner is a Natural Person:
a. The Owner may choose to continue this Certificate as if the death had
not occurred; or
b. If we receive due proof of death within 180 days of the date of the
Annuitant's death, then the Owner may alternatively choose to:
i. Receive the Death Benefit in a lump sum; or
ii. Apply the Death Benefit to an Income Plan which must begin within
one year of the date of death.
2. If the Owner is a non-Natural Person:
a. The non-natural Owner may elect, within 180 days of the Annuitant's
date of death, to receive the Death Benefit in a lump sum; or
b. The non-natural Owner may elect to receive the Settlement Value
payable in a lump sum within 5 years of the Annuitant's date of death.
If the non-natural Owner does not make one of the above described elections, the
Settlement Value must be withdrawn by the non-natural Owner on or before the
mandatory distribution date 5 years after the Annuitant's death.
Under any of these options, all ownership rights are available to the Owner from
the date of the Annuitant's death to the date on which the Death Benefit or
Settlement Value is paid. We reserve the right to extend beyond 180 days the
period when we will pay the Death Benefit.
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:
o the sum of all purchase payments reduced by a withdrawal adjustment, as
defined below; or
o the Certificate Value on the date we determine the Death Benefit; or
NYLU448
<PAGE>
o the Maximum Anniversary Value.
o On the date of issue, the Maximum Anniversary Value is equal to the initial
purchase payment.
o After issue, the Maximum Anniversary Value is recalculated when a purchase
payment or withdrawal is made or on a certificate anniversary as follows:
A. For purchase payments, the Maximum Anniversary Value is equal to the
most recently calculated Maximum Anniversary Value plus the purchase
payment.
B. For withdrawals, the Maximum Anniversary Value is equal to the most
recently calculated Maximum Anniversary Value reduced by a withdrawal
adjustment, as defined below.
C. On each certificate anniversary, the Maximum Anniversary Value is
equal to the greater of the Certificate Value or the most recently
calculated Maximum Anniversary Value.
In the absence of any withdrawals or purchase payments, the Maximum
Anniversary Value will be the greatest of all anniversary Certificate
Values on or prior to the date we calculate the death benefit.
The Maximum Anniversary Value will be recalculated until the first
Certificate Anniversary after the 80th birthday of the oldest Owner
or, if no Owner is a living individual, the Annuitant. After that
date, the Maximum Anniversary Value will be recalculated only for
purchase payments and withdrawals. The Maximum Anniversary Value will
never be greater than the maximum death benefit allowed by any
non-forfeiture laws which govern this Certificate.
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.
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.
PAYOUT PHASE
- -------------------------------------------------------------------------------
Payout Phase Defined The "Payout Phase" is the second of the two phases during
your Certificate. During this phase the Certificate Value less any applicable
taxes is applied to the Income Plan you choose and is paid out as provided in
that plan.
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 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.
NYLU448
<PAGE>
The Payout Start Date must be on or before the Annuitant's 90th birthday.
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 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. Income payments for less than 120 months may be subject to a
Withdrawal Charge.
In lieu of applying all or a portion of the Certificate Value to Income
Plans 1, 2, or 3, the Owner may elect to:
o receive a withdrawal benefit as described in the Withdrawal provision:
or
o receive income payments for a specified period.
We reserve the right to make available other Income Plans.
Income Payments Income payment amounts may be Variable Amount Income Payments,
Fixed Amount Income Payments, or both. The method of calculating the initial
payment is different for the two types of payments. 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 subaccount is determined by
applying the amount of the Certificate Value in that subaccount 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 subaccount to
determine the number of Annuity Units from that subaccount which will be used to
determine subsequent income payments. Unless transfers are made between
subaccounts, each subsequent income payment from that subaccount will be that
number of Annuity Units times the Annuity Unit Value for the subaccount for the
Valuation Date on which the income payment is made.
Annuity Unit Value The Annuity Unit Value for each subaccount of the Variable
Account at the end of any Valuation Period is calculated by:
o multiplying the Annuity Unit Value at the end of the immediately preceding
Valuation Period by the subaccount's Net Investment Factor during the
period; and then
o 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%. We
reserve the right to offer an assumed investment rate greater than 3%.
NYLU448
<PAGE>
Fixed Amount Income Payments The income payment amount derived from any monies
allocated to the Fixed Account Options during the Accumulation Phase is 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, 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.
Annuity Transfers After the Payout Start Date, no transfers may be made from the
Fixed Amount Income Payment. Transfers between subaccounts of the Variable
Account may not be made for six months after the Payout Start Date. Transfers
from the Variable Amount Income Payment to the Fixed Amount Income Payment may
be made only if Income Plan 3 has been chosen, and may not be made for six
months after the Payout Start Date. Transfers permitted above may be made once
every six months after the initial six-month waiting period concludes.
Payout Terms and Conditions The income payments are subject to the following
terms and conditions:
o If no purchase payments have been received for two years preceding the
Payout Start Date and the Certificate Value either is less than $2,000 or
is not enough to provide an initial payment of at least $20, we reserve the
right to:
o change the payment frequency to make the payment at least $20; or
o terminate the Certificate and pay you the Certificate Value less any
applicable taxes in a lump sum.
o 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.
o If you choose an Income Plan which depends on any person's life, we may
require:
o proof of age and sex before income payments begin; and
o proof that the Annuitant or joint Annuitant is still alive before we
make each payment.
o 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.
o 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.
Fixed Amount Income Payments 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.
NYLU448
<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
- ---------------------------------------------------------------------------------------------------------------------------
Annuitant's Annuitant's Annuitant's
Age Male Female Age Male Female Age Male Female
- ------------------ ------------------------ ----------------- ----------------------- ----------------- ----------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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 5.96
43 3.79 3.53 57 4.81 4.38 71 6.78 6.13
44 3.84 3.58 58 4.92 4.46 72 6.96 6.31
45 3.90 3.62 59 5.02 4.55 73 7.13 6.50
46 3.96 3.67 60 5.14 4.65 74 7.31 6.69
47 4.02 3.72 61 5.26 4.75 75 7.49 6.88
48 4.08 3.77 62 5.39 4.86
================== ======================== ================= ======================= ================= =========================
</TABLE>
<TABLE>
<CAPTION>
Income Plan 2 - Joint and Survivor Life Income with Guaranteed Payments for 120 Months
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
- ------------------- -------- ----------- ----------- ----------- ---------- ----------- ----------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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>
NYLU448
<PAGE>
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
================================ =============================================
GENERAL PROVISIONS
- -------------------------------------------------------------------------------
The Entire Contract The entire contract consists of this Certificate, the Master
Policy, the Master Policy application, any written application, and any
Certificate endorsements 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:
o pay all amounts underpaid including interest calculated at an effective
annual rate of 6%; or
o 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. The effective
date of the information in the annual statement will not be more than two months
before date of mailing. We will provide you with Certificate Value information
at any time upon request. The information presented will comply with any
applicable law.
NYLU448
<PAGE>
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:
o a certified copy of a death certificate; or
o a certified copy of a decree of a court of competent jurisdiction as to a
finding of death; or
o any other proof acceptable to us.
Any full 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.
Deferment of Payments We will pay any amounts due from the Variable Account
under this Certificate within seven days, unless:
o the New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on such Exchange is restricted;
o an emergency exists as defined by the Securities and Exchange Commission;
or
o 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 for 10 days or more, we will pay interest as required by applicable law.
Any interest would be payable from the date the withdrawal request is received
by us to the date the payment is made.
Variable Account Modifications We reserve the right, subject to applicable law,
to make additions to, deletions from, or substitutions for the mutual fund
shares underlying the subaccounts of the Variable Account. We will not
substitute any shares attributable to your interest in a subaccount 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 subaccounts of the Variable
Account, each of which would invest in shares of a mutual fund. You may then
instruct us to allocate purchase payments or transfers to such subaccounts,
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.
NYLU448
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 statement of additional information contained in the initial filing under
the Securities Act of 1933 of a Form N-4 Registration Statement of Allstate Life
of New York Separate Account A, which also constitutes Amendment No. 4 to the
Form N-4 Registration Statement under the Investment Company Act of 1940 (File
No. 811-7467).
FREEDMAN, LEVY, KROLL & SIMONDS
Washington, DC
March 12, 1999
POWER OF ATTORNEY
WITH RESPECT TO
THE ALLSTATE LIFE OF NEW YORK
SEPARATE ACCOUNT A
Know all men by these presents that Thomas J. Wilson, II, whose signature
appears below, constitutes and appoints Louis G. Lower, II and Michael J.
Velotta, his attorneys-in-fact, with power of substitution, and each of them in
any and all capacities, to sign any registration statements and amendments
thereto for the Allstate Life of New York Separate Account A and related
Contracts 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 said attorney-in-fact, or his substitute or
substitutes, may do or cause to be done by virtue hereof.
March 11, 1999
--------------
Date
/s/Thomas J. Wilson, II
-----------------------
Thomas J. Wilson, II
President and Director
