AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 10, 2000
- ------------------------------------------------------------------------------
FILE NOS. 033-65381
811-07467
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST-EFFECTIVE AMENDMENT NO. 7 /X/
AND/OR
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY
ACT OF 1940
AMENDMENT NO. 13 /X/
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
(Exact Name of Registrant)
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
(Name of Depositor)
ONE ALLSTATE DRIVE
P.O. BOX 9095
FARMINGVILLE, NEW YORK 11738
516/451-5300
(Address and Telephone Number of Depositor's Principal Offices)
MICHAEL J. VELOTTA
VICE PRESIDENT, SECRETARY AND GENERAL COUNSEL
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
3100 SANDERS ROAD
NORTHBROOK, ILLINOIS 60062
847-402-2400
(Name, Address and Telephone Number of Agent for Service)
COPIES TO:
RICHARD T. CHOI, ESQUIRE TERRY R. YOUNG, ESQUIRE
FREEDMAN, LEVY, KROLL & SIMONDS ALFS, INC.
1050 CONNECTICUT AVENUE, N.W. 3100 SANDERS ROAD
SUITE 825 SUITE J5B
WASHINGTON, D.C. 20036-5366 NORTHBROOK, IL 60062
Approximate date of proposed public offering: Continuous
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE (CHECK APPROPRIATE BOX)
/ / immediately upon filing pursuant to paragraph (b) of Rule 485
/X/ on May 1, 2000 pursuant to paragraph (b) of Rule 485
/ / 60 days after filing pursuant to paragraph (a)(1) of Rule 485
/ / on (date) pursuant to paragraph (a)(i) of Rule 485
IF APPROPRIATE, CHECK THE FOLLOWING BOX:
/ / This post-effective amendment designates a new effective date for a
previously filed post-effective amendment.
Title of Securities Being Registered: Units of Interest in the Allstate Life of
New York Separate Account A under deferred variable annuity contracts.
<PAGE>
THE AIM LIFETIME PLUS(sm) VARIABLE ANNUITY
Allstate Life Insurance Company of New York Prospectus dated May 1, 2000
P.O. Box 94038, Palatine, IL 60094-4038
Telephone Number: 1(800)692-4682
Allstate Life Insurance Company of New York ("Allstate New York") has issued the
AIM Lifetime Plus(sm) Variable Annuity, a group flexible premium deferred
variable annuity contract ("Contract"). This prospectus contains information
about the Contract that you should know before investing. Please keep it for
future reference.
The Contract currently offers 18 investment alternatives ("investment
alternatives"). The investment alternatives include the fixed account ("Fixed
Account") and 17 variable sub-accounts ("Variable Sub-Accounts") of the Allstate
Life of New York Separate Account A ("Variable Account"). Each Variable
Sub-Account invests exclusively in shares of one of the following funds
("Funds") of AIM Variable Insurance Funds:
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. Aggressive Growth Fund AIM V.I. Global Utilities Fund
AIM V.I. Balanced Fund AIM V.I. Government Securities Fund
AIM V.I. Blue Chip Fund AIM V.I. Growth Fund
AIM V.I. Capital Appreciation Fund AIM V.I. Growth and Income Fund
AIM V.I. Capital Development Fund AIM V.I. High Yield Fund
AIM V.I. Dent Demographics Trends Fund AIM V.I. International Equity Fund
AIM V.I. Diversified Income Fund AIM V.I. Money Market Fund
AIM V.I. Global Growth and Income Fund AIM V.I. Telecommunications and Technology Fund*
AIM V.I. Value Fund
</TABLE>
* Effective May 1, 2000, the Fund changed its name from AIM V.I.
Telecommunications Fund to AIM V.I. Telecommunications and Technology Fund to
reflect changes in its investment policies. We have made a corresponding change
in the name of the Variable Sub-Account that invests in that Fund.
We (Allstate New York) have filed a Statement of Additional Information, dated
May 1, 2000, with the Securities and Exchange Commission ("SEC"). It contains
more information about the Contract and is incorporated herein by reference,
which means it is legally a part of this prospectus. Its table of contents
appears on page C-1 of this prospectus. For a free copy, please write or call us
at the address or telephone number above, or go to the SEC's Web site
(http://www.sec.gov) You can find other information and documents about us,
including documents that are legally part of this prospectus, at the SEC's Web
site.
<TABLE>
<CAPTION>
IMPORTANT
NOTICES
<S> <C>
The Securities and Exchange Commission has not approved or
disapproved the securities described in this prospectus, nor
has it passed on the accuracy or the adequacy of this
prospectus. Anyone who tells you otherwise is committing a
federal crime.
The Contracts may be distributed through broker-dealers that
have relationships with banks or other financial institutions
or by employees of such banks. However, the Contracts are not
deposits, or obligations of, or guaranteed by such
institutions or any federal regulatory agency. Investment in
the Contracts involves investment risks, including possible
loss of principal.
The Contracts are not FDIC insured.
The Contracts are only available in New York.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
TABLE OF CONTENTS
Page
Important Terms....................................................
Overview The Contract at a Glance...........................................
How the Contract Works.............................................
Expense Table......................................................
Financial Information..............................................
The Contract.......................................................
Purchases..........................................................
Contract Value.....................................................
Investment Alternatives:
The Variable Sub-Accounts...............................
The Fixed Account.......................................
Transfers...............................................
Contract Features Expenses...........................................................
Access To Your Money...............................................
Income Payments....................................................
Death Benefits.....................................................
More Information:
Allstate New York.......................................
The Variable Account....................................
The Funds...............................................
Other Information The Contract............................................
Qualified Plans.........................................
Legal Matters...........................................
Year 2000
Taxes.............................................................
Annual Reports and Other Documents.................................
Performance Information............................................
Experts............................................................
Appendix A - Accumulation Unit Values. A-1
Appendix B - Market Value Adjustment Examples B-1
Statement of Additional Information Table of Contents C-1
</TABLE>
<PAGE>
IMPORTANT TERMS
This prospectus uses a number of important terms that you may not be familiar
with. The index below identifies the page that describes each term. The first
use of each term in this prospectus appears in highlights.
<TABLE>
<CAPTION>
Page
<S> <C> <C>
Accumulation Phase......................................................
Accumulation Unit.......................................................
Accumulation Unit Value.................................................
Allstate New York ("We")................................................
Anniversary Values......................................................
Annuitant...............................................................
Automatic Additions Program.............................................
Automatic Fund Rebalancing Program......................................
Beneficiary.............................................................
Cancellation Period.....................................................
*Contract...............................................................
Contract Anniversary....................................................
Contract Owner ("You")..................................................
Contract Value..........................................................
Contract Year...........................................................
Death Benefit Anniversary...............................................
Dollar Cost Averaging Program...........................................
Due Proof of Death......................................................
Fixed Account...........................................................
Funds...................................................................
Guarantee Periods.......................................................
Income Plan.............................................................
Investment Alternatives.................................................
Issue Date..............................................................
Market Value Adjustment.................................................
Payout Phase............................................................
Payout Start Date.......................................................
Preferred Withdrawal Amount.............................................
Qualified Contracts.....................................................
SEC.....................................................................
Settlement Value........................................................
Systematic Withdrawal Program...........................................
Treasury Rate...........................................................
Valuation Date..........................................................
Variable Account........................................................
Variable Sub-Account....................................................
</TABLE>
* The AIM Lifetime Plus(sm) Variable Annuity is a group contract, and your
ownership is represented by certificates. References to "Contract" in this
prospectus include certificates, unless the context requires otherwise.
<PAGE>
<TABLE>
<CAPTION>
THE CONTRACT AT A GLANCE
The following is a snapshot of the Contract. Please read the remainder of this
prospectus for more information.
<S> <C>
Flexible Payments You can add to your Contract
as often and as much as you like, but
each payment must be at least $500
($100 for automatic purchase payments
to the variable investment options).
You must maintain a minimum account
size of $1,000.
Expenses You will bear the following expenses:
o Total Variable Account annual fees
equal to 1.45% of average daily net
assets
o Annual contract maintenance charge
of $35 (with certain exceptions)
o Withdrawal charges ranging
from 0% to 7% of payment
withdrawn (with certain
exceptions)
o Transfer fee of $10 after 12th
transfer in any Contract Year
(fee currently waived)
o State premium tax (New
York currently does not
impose one).
In addition, each Fund pays
expenses that you will bear
indirectly if you invest in
a Variable Sub-Account.
Investment
Alternatives The Contract offers 18
investment alternatives
including:
o the Fixed Account (which credits
interest at rates we guarantee), and
o 17 Variable Sub-Accounts
investing in Funds
offering professional
money management by A I M
Advisors, Inc.
To find out current rates
being paid on the Fixed
Account, or to find out how
the Variable Sub-Accounts
have performed, please call
us at
1-800-692-4682.
Special Services For your
convenience, we offer these
special services:
o Automatic Fund Rebalancing Program
o Automatic Additions Program
o Dollar Cost Averaging Program
o Systematic Withdrawal Program
<PAGE>
Income Payments You can choose
fixed income payments,
variable income payments,
or a combination of the
two. You can receive your
income payments in one of
the following ways:
o life income with guaranteed
payments
o a joint and survivor life income
with guaranteed payments
o guaranteed payments for a
specified period (5 to 30 years)
Death Benefits If you die before
the Payout Start Date, we
will pay the death benefit
described in the Contract.
Transfers Before the Payout Start Date, you
may transfer your Contract value
("Contract Value") among the
investment alternatives, with
certain restrictions. Transfers to
the Fixed Account must be at least
$500.
We do not currently impose
a fee upon transfers.
However, we reserve the
right to charge $10 per
transfer after the 12th
transfer in each "Contract
Year," which we measure
from the date we issue
your contract or a
Contract anniversary
("Contract Anniversary").
Withdrawals You may withdraw some or
all of your Contract Value
at anytime during the
Accumulation Phase. Full or
partial withdrawals are available
under limited circumstances on or
after the Payout Start Date.
In general, you must
withdraw at least $50 at a
time ($1,000 for withdrawals
made during the Payout Phase).
A 10% federal tax penalty
may apply if you withdraw
before you are 59-1/2 years
old. A withdrawal charge and
Market Value Adjustment
also may apply.
</TABLE>
<PAGE>
HOW THE CONTRACT WORKS
The Contract basically works in two ways.
First, the Contract can help you (we assume you are the Contract owner) save for
retirement because you can invest in up to 18 investment alternatives and pay no
federal income taxes on any earnings until you withdraw them. You do this during
what we call the "Accumulation Phase" of the Contract. The Accumulation Phase
begins on the date we issue your Contract (we call that date the "Issue Date")
and continues until the Payout Start Date, which is the date we apply your money
to provide income payments. During the Accumulation Phase, you may allocate your
purchase payments to any combination of the Variable Sub-Accounts and/or the
Fixed Account. If you invest in the Fixed Account, you will earn a fixed rate of
interest that we declare periodically. If you invest in any of the Variable
Sub-Accounts, your investment return will vary up or down depending on the
performance of the corresponding Funds.
Second, the Contract can help you plan for retirement because you can use it to
receive retirement income for life and/or for a pre-set number of years, by
selecting one of the income payment options (we call these "Income Plans")
described on page ___. You receive income payments during what we call the
"Payout Phase" of the Contract, which begins on the Payout Start Date and
continues until we make the last payment required by the Income Plan you select.
During the Payout Phase, if you select a fixed income payment option, we
guarantee the amount of your payments, which will remain fixed. If you select a
variable income payment option, based on one or more of the Variable
Sub-Accounts, the amount of your payments will vary up or down depending on the
performance of the corresponding Funds. The amount of money you accumulate under
your Contract during the Accumulation Phase and apply to an Income Plan will
determine the amount of your income payments during the Payout Phase.
The timeline below illustrates how you might use your Contract.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Issue Payout Start
Date Accumulation Phase Date Payout
Phase
--------------------------------------------------------------------------------------------------------------------------->
You save for retirement
| | |
|
You buy You elect to receive income You can receive Or you can
a Contract payments or receive a lump income payments receive income
sum payment for a set period payments for life
</TABLE>
As the Contract owner, you exercise all of the rights and privileges provided by
the Contract. If you die, any surviving Contract owner, or if there is none, the
Beneficiary will exercise the rights and privileges provided by the Contract.
See "The Contract." In addition, if you die before the Payout Start Date, we
will pay a death benefit to any surviving Contract owner or, if none, to your
Beneficiary. See "Death Benefits."
Please call us at 1-800-692-4682 if you have any questions about how the
Contract works.
<PAGE>
EXPENSE TABLE
The table below lists the expenses that you will bear directly or indirectly
when you buy a Contract. The table and the examples that follow do not reflect
premium taxes because New York currently does not impose premium taxes on
annuities. For more information about Variable Account expenses, see "Expenses,"
below. For more information about Fund expenses, please refer to the
accompanying prospectus for the Funds.
CONTRACT OWNER TRANSACTION EXPENSES
Withdrawal Charge (as a percentage of purchase payments)*
Number of Complete Years Since We Received the Purchase
Payment Being Withdrawn: 0 1 2 3 4 5 6 7+
Applicable Charge: 7% 6% 5% 4% 3% 2% 1% 0%
Annual Contract Maintenance Charge................................... $35.00**
Transfer Fee......................................................... $10.00***
* Each Contract Year, you may withdraw up to 10% of purchase payments without
incurring a withdrawal charge or a Market Value Adjustment.
** We will waive this charge in certain cases. See "Expenses."
***Applies solely to the thirteenth and subsequent transfers within a Contract
Year excluding transfers due to dollar cost averaging or automatic fund
rebalancing. We are currently waiving the transfer fee.
<TABLE>
<CAPTION>
<S> <C>
VARIABLE ACCOUNT ANNUAL EXPENSES
(as a percentage of average daily net assets deducted from each Variable Sub-Account)
Mortality and Expense Risk Charge......................................................1.35%
Administrative Expense Charge..........................................................0.10%
Total Variable Account Annual Expenses.................................................1.45%
</TABLE>
<PAGE>
FUND ANNUAL EXPENSES (after Voluntary Reductions and Reimbursements)(as a
percentage of Fund average daily net assets)(1)
<TABLE>
<CAPTION>
Management Other Total Annual
Fund Fee Expenses Fund Expenses
<S> <C> <C> <C> <C>
AIM V.I. Aggressive Growth Fund (2) 0.00% 1.19% 1.19%
AIM V.I. Balanced Fund (2) 0.65% 0.56% 1.21%
AIM V.I. Blue Chip Fund 0.75% 0.55% 1.30%
AIM V.I. Capital Appreciation Fund 0.62% 0.11% 0.73%
AIM V.I. Capital Development Fund (2) 0.00% 1.23% 1.23%
AIM V.I. Dent Demographics Trends Fund 0.85% 0.55% 1.40%
AIM V.I. Diversified Income Fund 0.60% 0.23% 0.83%
AIM V.I. Global Growth and Income Fund(2) 0.97% 0.37% 1.34%
AIM V.I. Global Utilities Fund 0.65% 0.49% 1.14%
AIM V.I. Government Securities Fund 0.50% 0.40% 0.90%
AIM V.I. Growth Fund 0.63% 0.10% 0.73%
AIM V.I. Growth and Income Fund 0.61% 0.16% 0.77%
AIM V.I. High Yield Fund(2) 0.35% 0.79% 1.14%
AIM V.I. International Equity Fund 0.75% 0.22% 0.97%
AIM V.I. Money Market Fund 0.40% 0.20% 0.60%
AIM V.I. Telecommunications and Technology Fund 1.00% 0.27% 1.27%
AIM V.I. Value Fund 0.61% 0.15% 0.76%
</TABLE>
(1) Figures shown in the table are for the year ended December 31, 1999, except
for the AIM V.I. Blue Chip, AIM V.I. Dent Demographics Trends, AIM V.I.
Global Growth and Income, and AIM V.I. Telecommunications and Technology
Funds which commenced operations on December 29, 1999, December 29, 1999,
October 15, 1999 and October 15, 1999 respectively. For these Funds, the
management fee, other expenses and total annual fund operating expenses are
based on estimates for the Funds' first full fiscal year.
(2) Absent voluntary reductions and reimbursements for certain Funds,
management fees, other expenses, and total annual fund expenses expressed
as a percentage of average net assets of the Funds would have been as
follows:
<TABLE>
<CAPTION>
Management Other Total Annual
Fund Fee Expenses Fund Expenses
<S> <C> <C> <C>
AIM V.I. Aggressive Growth Fund 0.80% 1.62% 2.42%
AIM V.I. Balanced Fund 0.75% 0.56% 1.31%
AIM V.I. Capital Development Fund 0.75% 2.67% 3.42%
AIM V.I. Global Growth and Income Fund 1.00% 0.37% 1.37%
AIM V.I. High Yield Fund 0.63% 0.79% 1.42%
</TABLE>
EXAMPLE 1
The example below shows the dollar amount of expenses that you would bear
directly or indirectly if you:
o invested $1,000 in a Variable Sub-Account,
o earned a 5% annual return on your investment, and
o surrendered your Contract, or began receiving income payments for a
specified period of less than 120 months, at the end of each time period.
The example does not include any penalties you may be required to pay if you
surrender your Contract. The example does not include deductions for premium
taxes because New York does not charge premium taxes on annuities.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
AIM V.I. Aggressive Growth $94 $158 $223 $421
AIM V.I. Balanced $83 $124 $169 $317
AIM V.I. Blue Chip $83 $124 $168 $316
AIM V.I. Capital Appreciation $77 $107 $139 $259
AIM V.I. Capital Development $105 $187 $270 $504
AIM V.I. Dent Demographics Trends $84 $127 $173 $326
AIM V.I. Diversified Income $78 $110 $144 $269
AIM V.I. Global Growth and Income $84 $126 $172 $323
AIM V.I. Global Utilities $81 $119 $160 $301
AIM V.I. Government Securities $79 $112 $148 $276
AIM V.I. Growth $77 $107 $139 $259
AIM V.I. Growth and Income Fund $77 $108 $141 $263
AIM V.I. High Yield Fund $84 $128 $174 $328
AIM V.I. International Equity Fund $79 $114 $151 $283
AIM V.I. Money Market Fund $76 $103 $132 $245
AIM V.I. Telecommunications and Technology $82 $123 $167 $313
AIM V.I. Value $77 $108 $140 $262
EXAMPLE 2
Same assumptions as Example 1 above, except that you decided not to surrender
your Contract, or you began receiving income payments (for at least 120 months
if under an Income Plan with a specified period), at the end of each period.
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
------ ------- ------- --------
AIM V.I. Aggressive Growth $40 $122 $205 $421
AIM V.I. Balanced $29 $88 $151 $317
AIM V.I. Blue Chip $29 $88 $150 $316
AIM V.I. Capital Appreciation $23 $71 $121 $259
AIM V.I. Capital Development $51 $151 $252 $504
AIM V.I. Dent Demographics Trends $30 $91 $155 $326
AIM V.I. Diversified Income $24 $74 $126 $269
AIM V.I. Global Growth and Income $30 $90 $154 $323
AIM V.I. Global Utilities $27 $83 $142 $301
AIM V.I. Government Securities $25 $76 $130 $276
AIM V.I. Growth $23 $71 $121 $259
AIM V.I. Growth and Income $23 $72 $123 $263
AIM V.I. High Yield $30 $92 $156 $328
AIM V.I. International Equity $25 $78 $133 $283
AIM V.I. Money Market $22 $67 $114 $245
AIM V.I. Telecommunications and Technology $28 $87 $149 $313
AIM V.I. Value $23 $72 $122 $262
</TABLE>
Please remember that you are looking at examples and not a representation of
past or future expenses. Your actual expenses may be lower or greater than those
shown above. Similarly, your rate of return may be lower or greater than 5%,
which is not guaranteed. To reflect the contract maintenance charge in the
examples, we estimated an equivalent percentage charge, based on an average
Contract size of $57,476.
<PAGE>
FINANCIAL INFORMATION
To measure the value of your investment in the Variable Sub-Accounts during the
Accumulation Phase, we use a unit of measure we call the "Accumulation Unit."
Each Variable Sub-Account has a separate value for its Accumulation Units we
call "Accumulation Unit Value." Accumulation Unit Value is analogous to, but not
the same as, the share price of a mutual fund.
Attached as Appendix A to this prospectus are tables showing the Accumulation
Unit Values of each Variable Sub-Account since its inception. To obtain a fuller
picture of each Variable Sub-Account's finances, please refer to the Variable
Account's financial statements contained in the Statement of Additional
Information. The financial statements of Allstate New York also appear in the
Statement of Additional Information.
<PAGE>
THE CONTRACT
CONTRACT OWNER
The AIM Lifetime Plus(sm) Variable Annuity is a contract between you, the
Contract owner, and Allstate New York, a life insurance company. As the Contract
owner, you may exercise all of the rights and privileges provided to you by the
Contract. That means it is up to you to select or change (to the extent
permitted):
o the investment alternatives during the Accumulation and Payout Phases,
o the amount and timing of your purchase payments and withdrawals,
o the programs you want to use to invest or withdraw money,
o the income payment plan you want to use to receive retirement income,
o the Annuitant (either yourself or someone else) on whose life the income
payments will be based,
o the Beneficiary or Beneficiaries who will receive the benefits that the
Contract provides when the last surviving Contract owner dies, and
o any other rights that the Contract provides.
If you die, any surviving Contract owner or, if none, the Beneficiary may
exercise the rights and privileges provided to them by the Contract.
The Contract cannot be jointly owned by both a non-natural person and a natural
person. The maximum issue age of a Contract owner is age 90.
You can use the Contract with or without a qualified plan. A qualified plan is a
personal retirement savings plan, such as an IRA or tax-sheltered annuity, that
meets the requirements of the Internal Revenue Code. Qualified plans may limit
or modify your rights and privileges under the Contract. We use the term
"Qualified Contract" to refer to a Contract issued with a qualified plan. See
"Qualified Plans" on page ___.
ANNUITANT
The Annuitant is the individual whose life determines the amount and duration of
income payments (other than under Income Plans with guaranteed payments for a
specified period). If the Contract owner is a natural person you may change the
Annuitant prior to the Payout Start Date. In our discretion, we may permit you
to designate a joint Annuitant, who is a second person on whose life income
payments depend, on the Payout Start Date. The maximum issue age of an Annuitant
is age 80.
If the Annuitant dies prior to the Payout Start Date, the new Annuitant will be:
o the youngest Contract owner if living, otherwise
o the youngest Beneficiary.
BENEFICIARY
The Beneficiary is the person who may elect to receive the death benefit or
become the new Contract owner if the sole surviving Contract owner dies before
the Payout Start Date. If the sole surviving Contract owner dies after the
Payout Start Date, the Beneficiary will receive any guaranteed income payments
scheduled to continue.
You may change or add Beneficiaries at any time by writing to us, unless you
have designated an irrevocable Beneficiary. We will provide a change of
Beneficiary form to be signed and filed with us. Any change will be effective at
the time you sign the written notice, whether or not the Annuitant is living
when we receive the notice. Until we receive your written notice to change a
Beneficiary, we are entitled to rely on the most recent Beneficiary information
in our files. We will not be liable as to any payment or settlement made prior
to receiving the written notice. Accordingly, if you wish to change your
Beneficiary, you should deliver your written notice to us promptly.
<PAGE>
If you did not name a Beneficiary or if the named Beneficiary is no longer
living and there are no other surviving Beneficiaries, the new Beneficiary will
be:
o your spouse or, if he or she is no longer alive,
o your surviving children equally, or if you have no surviving children,
o your estate.
If more than one Beneficiary survives you (or the Annuitant if the Contract
owner is not a natural person), we will divide the death benefit among your
Beneficiaries according to your most recent written instructions. If you have
not given us written instructions, we will pay the death benefit in equal
amounts to the surviving Beneficiaries.
MODIFICATION OF THE CONTRACT
Only an Allstate New York officer may approve a change in or waive any provision
of the Contract. Any change or waiver must be in writing. None of our agents has
the authority to change or waive the provisions of the Contract. We may not
change the terms of the Contract without your consent, except to conform the
Contract to applicable law or changes in the law. If a provision of the Contract
is inconsistent with state law, we will follow state law.
ASSIGNMENT
We will not honor an assignment of an interest in a Contract as collateral or
security for a loan. However, you may assign periodic income payments under the
Contract prior to the Payout Start Date. No Beneficiary may assign benefits
under the Contract until they are due. We will not be bound by any assignment
until the assignor signs it and files it with us. We are not responsible for the
validity of any assignment. Federal law prohibits or restricts the assignment of
benefits under many types of retirement plans and the terms of such plans may
themselves contain restrictions on assignments. An assignment may also result in
taxes or tax penalties. You should consult with an attorney before trying to
assign your Contract.
<PAGE>
PURCHASES
MINIMUM PURCHASE PAYMENTS
All additional purchase payments must be $500 or more. You may make purchase
payments at any time prior to the Payout Start Date. We reserve the right to
limit the maximum amount of purchase payments we will accept.
AUTOMATIC ADDITIONS PROGRAM
You may make additional purchase payments of at least $100 ($500 for allocation
to the Fixed Account) by automatically transferring amounts from your bank
account. Please consult with your sales representative for detailed information.
ALLOCATION OF PURCHASE PAYMENTS
All allocations must be in whole percents that total 100% or in whole dollars.
You can change your allocations by notifying us in writing.
We will allocate your additional purchase payments to the investment
alternatives according to your most recent instructions on file with us. Unless
you notify us in writing otherwise, we will allocate subsequent purchase
payments according to the allocation for the previous purchase payment. We will
effect any change in allocation instructions at the time we receive written
notice of the change in good order.
We will credit additional purchase payments to the Contract at the close of the
business day on which we receive the purchase payment at our service center
located in Northbrook, Illinois (mailing address: P.O. Box 94038, Palatine,
Illinois, 60094-4038; overnight mail: 3100 Sanders Road, Suite J4A, Northbrook,
Illinois, 60062).
We are open for business each day Monday through Friday that the New York Stock
Exchange is open for business. We also refer to these days as "Valuation Dates."
Our business day closes when the New York Stock Exchange closes, usually 4:00
p.m. Eastern Time (3:00 p.m. Central Time). If we receive your purchase payment
after 4:00 p.m. Eastern Time (3:00 p.m. Central Time) on any Valuation Date, we
will credit your purchase payment using the Accumulation Unit Values computed on
the next Valuation Date.
<PAGE>
CONTRACT VALUE
Your Contract Value at any time during the Accumulation Phase is equal to the
sum of the value of your Accumulation Units in the Variable Sub-Accounts you
have selected, plus the sum of Sub-Account values in the Fixed Account.
ACCUMULATION UNITS
To determine the number of Accumulation Units of each Variable Sub-Account to
credit to your Contract, we divide (i) the amount of the purchase payment or
transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation
Unit Value of that Variable Sub-Account next computed after we receive your
payment or transfer. For example, if we receive a $10,000 purchase payment
allocated to a Variable Sub-Account when the Accumulation Unit Value for the
Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable
Sub-Account to your Contract. Withdrawals and transfers from a Variable
Sub-Account would, of course, reduce the number of Accumulation Units of that
Sub-Account allocated to your Contract.
ACCUMULATION UNIT VALUE
As a general matter, the Accumulation Unit Value for each Variable Sub-Account
will rise or fall to reflect:
o changes in the share price of the Fund in which the Variable Sub-Account
invests, and
o the deduction of amounts reflecting the mortality and expense risk charge,
administrative expense charge, and any provision for taxes that have
accrued since we last calculated the Accumulation Unit Value.
We determine contract maintenance charges, withdrawal charges, and transfer fees
(currently waived) separately for each Contract. They do not affect Accumulation
Unit Value. Instead, we obtain payment of those charges and fees by redeeming
Accumulation Units. For details on how we calculate Accumulation Unit Value,
please refer to the Statement of Additional Information.
We determine a separate Accumulation Unit Value for each Variable Sub-Account on
each Valuation Date.
You should refer to the prospectus for the Funds that accompanies this
prospectus for a description of how the assets of each Fund are valued, since
that determination directly bears on the Accumulation Unit Value of the
corresponding Variable Sub-Account and, therefore, your Contract Value.
<PAGE>
INVESTMENT ALTERNATIVES: The Variable Sub-Accounts
You may allocate your purchase payments to up to 17 Variable Sub-Accounts. Each
Variable Sub-Account invests in the shares of a corresponding Fund. Each Fund
has its own investment objective(s) and policies. We briefly describe the Funds
below.
For more complete information about each Fund, including expenses and risks
associated with the Fund, please refer to the accompanying prospectus for the
Fund. You should carefully review the Fund prospectus before allocating amounts
to the Variable Sub-Accounts. A I M Advisors, Inc. serves as the investment
advisor to each Fund.
<TABLE>
<CAPTION>
Fund: Each Fund Seeks:
<S> <C>
AIM V.I. Aggressive Growth Fund* Long-term growth of capital
AIM V.I. Balanced Fund As high a total return as possible, consistent with preservation of
capital
AIM V.I. Blue Chip Fund Long-term growth of capital with a secondary objective of current income
AIM V.I. Capital Appreciation Fund Growth of capital
AIM V.I. Capital Development Fund Long-term growth of capital
AIM V.I. Dent Demographics Trends Fund Long-term growth of capital
AIM V.I. Diversified Income Fund High level of current income
AIM V.I. Global Growth and Income Fund Long-term growth of capital together with current income
AIM V.I. Global Utilities Fund High total return
AIM V.I. Government Securities Fund High level of current income consistent with reasonable concern for
safety of principal
AIM V.I. Growth Fund Growth of capital
AIM V.I. Growth and Income Fund Growth of capital with a secondary objective of current income
AIM V.I. High Yield Fund High level of current income
AIM V.I. International Equity Fund Long-term growth of capital
AIM V.I. Money Market Fund As high a level of current income as is consistent with the preservation
of capital and liquidity
AIM V.I. Telecommunications and Technology Fund Long-term growth of capital
AIM V.I. Value Fund Long-term growth of capital with income as a secondary objective
</TABLE>
A Funds' investment objectives may be changed by the Fund's Board of Trustees
without shareholder approval.
* Due to the sometime limited availability of common stocks of small-cap
companies that meet the investment criteria for AIM V.I. Aggressive Growth Fund,
the Fund may periodically suspend or limit the offering of its shares. The Fund
will be closed to new participants when Fund assets reach $200 million. If the
Fund is closed, Contract owners maintaining an allocation of Contract Value in
that Fund will nevertheless be permitted to allocate additional purchase
payments to the Fund.
Amounts you allocate to Variable Sub-Accounts may grow in value, decline in
value, or grow less than you expect, depending on the investment performance of
the Funds in which those Variable Sub-Accounts invest. You bear the investment
risk that the Funds might not meet their investment objectives. Shares of the
Funds are not deposits, or obligations of, or guaranteed or endorsed by any bank
and are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
<PAGE>
INVESTMENT ALTERNATIVES : The Fixed Account
You may allocate all or a portion of your purchase payments to the Fixed
Account. The Fixed Account supports our insurance and annuity obligations. The
Fixed Account consists of our general assets other than those in segregated
asset accounts. We have sole discretion to invest the assets of the Fixed
Account, subject to applicable law. Any money you allocate to the Fixed Account
does not entitle you to share in the investment experience of the Fixed Account.
GUARANTEE PERIODS
Each purchase payment or transfer allocated to the Fixed Account earns interest
at a specified rate that we guarantee for a period of years we call a Guarantee
Period. Guarantee Periods may range from 1 to 10 years. We are currently
offering Guarantee Periods of 1, 3, 5, 7, and 10 years in length. In the future
we may offer Guarantee Periods of different lengths or stop offering some
Guarantee Periods. You select one or more Guarantee Periods for each purchase
payment or transfer. If you do not select the Guarantee Period for a purchase
payment or transfer, we will assign the shortest Guarantee Period available
under the Contract for such payment or transfer.
Each purchase payment or transfer allocated to a Guarantee Period must be at
least $500. We reserve the right to limit the number of additional purchase
payments that you may allocate to the Fixed Account. Please consult with your
sales representative for more information.
INTEREST RATES
We will tell you what interest rates and Guarantee Periods we are offering at a
particular time. We may declare different interest rates for Guarantee Periods
of the same length that begin at different times. We will not change the
interest rate that we credit to a particular allocation until the end of the
relevant Guarantee Period.
We have no specific formula for determining the rate of interest that we will
declare initially or in the future. We will set those interest rates based on
investment returns available at the time of the determination. In addition, we
may consider various other factors in determining interest rates including
regulatory and tax requirements, our sales commission and administrative
expenses, general economic trends, and competitive factors. We determine the
interest rates to be declared in our sole discretion. We can neither predict nor
guarantee what those rates will be in the future. For current interest rate
information, please contact your sales representative or Allstate New York at
1-800-692-4682. The interest rate will never be less than the minimum guaranteed
amount stated in the Contract.
HOW WE CREDIT INTEREST
We will credit interest daily to each amount allocated to a Guarantee Period at
a rate that compounds to the effective annual interest rate that we declared at
the beginning of the applicable Guarantee Period. The following example
illustrates how a purchase payment allocated to the Fixed Account would grow,
given an assumed Guarantee Period and effective annual interest rate:
Purchase Payment.......................................$10,000
Guarantee Period 5 years
Annual Interest Rate.................................... 4.50%
<TABLE>
<CAPTION>
END OF CONTRACT YEAR
<S> <C> <C> <C> <C> <C>
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
Beginning Contract Value $10,000.00
X (1 + Annual Interest Rate) X 1.045
$10,450.00
Contract Value at end of Contract Year $10,450.00
X (1 + Annual Interest Rate) X 1.045
$10,920.25
Contract Value at end of Contract Year $10,920.25
X (1 + Annual Interest Rate) X 1.045
$11,411.66
<PAGE>
Contract Value at end of Contract Year $11,411.66
X (1 + Annual Interest Rate) X 1.045
$11,925.19
Contract Value at end of Contract Year $11,925.19
X (1 + Annual Interest Rate) X 1.045
$12,461.82
Total Interest Credited During Guarantee Period = $2,461.82 ($12,461.82 -$10,000)
</TABLE>
This example assumes no withdrawals during the entire 5 year Guarantee Period.
If you were to make a withdrawal, you may be required to pay a withdrawal
charge. In addition, the amount withdrawn may be increased or decreased by a
Market Value Adjustment that reflects changes in interest rates since the time
you invested the amount withdrawn. The hypothetical interest rate is for
illustrative purposes only and is not intended to predict future interest rates
to be declared under the Contract. Actual interest rates declared for any given
Guarantee Period may be more or less than shown above but will never be less
than the guaranteed minimum rate stated in the Contract.
RENEWALS
At least 15 but not more than 45 days prior to the end of each Guarantee Period,
we will mail you a notice asking you what to do with your money, including the
accrued interest. During the 30-day period after the end of the Guarantee
Period, you may:
1) take no action. We will automatically apply your money to a new
Guarantee Period of the shortest duration available. The new Guarantee
Period will begin on the day the previous Guarantee Period ends. The new
interest rate will be our then current declared rate for a Guarantee Period
of that length; or
2) instruct us to apply your money to one or more new Guarantee Periods of
your choice. The new Guarantee Period(s) will begin on the day the previous
Guarantee Period ends. The new interest rate will be our then current
declared rate for those Guarantee Periods; or
3) instruct us to transfer all or a portion of your money to one or more
Variable Sub-Accounts. We will effect the transfer on the day we receive
your instructions. We will not adjust the amount transferred to include a
Market Value Adjustment; or
4) withdraw all or a portion of your money. You may be required to pay a
withdrawal charge, but we will not adjust the amount withdrawn to include a
Market Value Adjustment. You may also be required to pay premium taxes and
withholding (if applicable). The amount withdrawn will be deemed to have
been withdrawn on the day the previous Guarantee Period ends. Unless you
specify otherwise, amounts not withdrawn will be applied to a new Guarantee
Period of the shortest duration available. The new Guarantee Period will
begin on the day the previous Guarantee Period ends.
Under our automatic laddering program ("Automatic Laddering Program"), you may
choose, in advance, to use Guarantee Periods of the same length for all
renewals. You can select this Program at any time during the Accumulation Phase,
including on the Issue Date. We will apply renewals to Guarantee Periods of the
selected length until you direct us in writing to stop. We may stop offering
this Program at any time. For additional information on the Automatic Laddering
Program, please call our Customer Service unit at 1-800-692-4682.
<PAGE>
MARKET VALUE ADJUSTMENT
All withdrawals in excess of the Preferred Withdrawal Amount, transfers, and
amounts applied to an Income Plan from a Guarantee Period, other than those
taken during the 30 day period after such Guarantee Period expires, are subject
to a Market Value Adjustment. We will not apply a Market Value Adjustment to a
withdrawal you make:
o within the Preferred Withdrawal Amount as described on page __; or
o to satisfy the IRS minimum distribution rules.
We apply the Market Value Adjustment to reflect changes in interest rates from
the time you first allocate money to a Guarantee Period to the time it is
removed from that Guarantee Period. We calculate the Market Value Adjustment by
comparing the Treasury Rate for a period equal to the Guarantee Period at its
inception to the Treasury Rate for a period equal to the time remaining in the
Guarantee Period when you remove your money. "Treasury Rate" means the U.S.
Treasury Note Constant Maturity Yield as reported in Federal Reserve Bulletin
Release H.15.
The Market Value Adjustment may be positive or negative, depending on changes in
interest rates. As such, you bear the investment risk associated with changes in
interest rates. If interest rates increase significantly, the Market Value
Adjustment and any withdrawal charge, premium taxes, and income tax withholding
(if applicable) could reduce the amount you receive upon full withdrawal of your
Contract Value to an amount that is less than the purchase payment plus interest
at the minimum guaranteed interest rate under the Contract.
Generally, if the Treasury Rate at the time you allocate money to a Guarantee
Period is higher than the applicable current Treasury Rate for a period equal to
the time remaining in the Guarantee Period, then the Market Value Adjustment
will result in a higher amount payable to you or transferred. Conversely, if the
Treasury Rate at the time you allocate money to a Guarantee Period is lower than
the applicable Treasury Rate for a period equal to the time remaining in the
Guarantee Period, then the Market Value Adjustment will result in a lower amount
payable to you or transferred.
For example, assume that you purchase a Contract and you select an initial
Guarantee Period of 5 years and the 5 year Treasury Rate for that duration
is 4.50%. Assume that at the end of 3 years, you make a partial withdrawal.
If, at that later time, the current 2 year Treasury Rate is 4.20%, then the
Market Value Adjustment will be positive, which will result in an increase
in the amount payable to you. Conversely, if the current 2 year Treasury
Rate is 4.80%, then the Market Value Adjustment will be negative, which
will result in a decrease in the amount payable to you.
The formula for calculating Market Value Adjustments is set forth in Appendix B
to this prospectus, which also contains additional examples of the application
of the Market Value Adjustment.
<PAGE>
INVESTMENT ALTERNATIVES: Transfers
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase, you may transfer Contract Value among the
investment alternatives at any time. The minimum amount that you may transfer
into a Guarantee Period is $500. You may request transfers in writing on a form
that we provide or by telephone according to the procedure described below. We
currently do not assess, but reserve the right to assess, a $10 charge on each
transfer in excess of 12 per Contract Year. We treat transfers to or from more
than one Fund on the same day as one transfer. Transfers you make as part of an
Automatic Fund Rebalancing Program do not count against the 12 free transfers
per Contract Year.
We will process transfer requests that we receive before 4:00 p.m. Eastern Time
(3:00 p.m. Central Time) on any Valuation Date using the Accumulation Unit
Values for that Date. We will process requests completed after 4:00 p.m. Eastern
Time (3:00 p.m. Central Time) on any Valuation Date using the Accumulation Unit
Values for the next Valuation Date. The Contract permits us to defer transfers
from the Fixed Account for up to 6 months from the date we receive your request.
If we decide to postpone transfers from the Fixed Account for 10 days or more,
we will pay interest as required by applicable law. Any interest would be
payable from the date we receive the transfer request to the date we make the
transfer.
If you transfer an amount from a Guarantee Period other than during the 30 day
period after such Guarantee Period expires, we will increase or decrease the
amount by a Market Value Adjustment. If any transfer reduces your value in such
Guarantee Period to less than $500, we will treat the request as a transfer of
the entire value in such Guarantee Period.
We reserve the right to waive any transfer restrictions.
TRANSFERS DURING THE PAYOUT PHASE
During the Payout Phase, you may make transfers among the Variable Sub-Accounts
to change the relative weighting of the Variable Sub-Accounts on which your
variable income payments will be based. In addition, you will have a limited
ability to make transfers from the Variable Sub-Accounts to increase the
proportion of your income payments consisting of fixed income payments. You may
not, however, convert any portion of your right to receive fixed income payments
into variable income payments.
You may not make any transfers for the first 6 months after the Payout Start
Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make
transfers from the Variable Sub-Accounts to increase the proportion of your
income payments consisting of fixed income payments. Your transfers must be at
least 6 months apart.
TELEPHONE TRANSFERS
You may make transfers by telephone by calling 1-800-692-4682, if you first send
us a completed authorization form. The cut off time for telephone transfer
requests is 4:00 p.m. Eastern Time (3:00 p.m. Central Time). In the event that
the New York Stock Exchange closes early, i.e., before 4:00 p.m. Eastern Time
(3:00 p.m. Central Time), or in the event that the Exchange closes early for a
period of time but then reopens for trading on the same day, we will process
telephone transfer requests as of the close of the Exchange on that particular
day. We will not accept telephone requests received at any telephone number
other than the number that appears in this paragraph or received after the close
of trading on the Exchange.
We may suspend, modify or terminate the telephone transfer privilege at any time
without notice.
We use procedures that we believe provide reasonable assurance that the
telephone transfers are genuine. For example, we tape telephone conversations
with persons purporting to authorize transfers and request identifying
information. Accordingly, we disclaim any liability for losses resulting from
allegedly unauthorized telephone transfers. However, if we do not take
reasonable steps to help ensure that a telephone authorization is valid, we may
be liable for such losses.
<PAGE>
DOLLAR COST AVERAGING PROGRAM
Through the Dollar Cost Averaging Program, you may automatically transfer a set
amount at regular intervals during the Accumulation Phase from any Variable
Sub-Account, or the 1 year Guarantee Period of the Fixed Account, to any other
Variable Sub-Account. The interval between transfers may be monthly, quarterly,
semi-annually, or annually. Transfers made through dollar cost averaging must be
$50 or more. You may not use dollar cost averaging to transfer amounts to the
Fixed Account.
We will not charge a transfer fee for transfers made under this Program, nor
will such transfers count against the 12 transfers you can make each Contract
Year without paying a transfer fee. In addition, we will not apply the Market
Value Adjustment to these transfers.
The theory of dollar cost averaging is that if purchases of equal dollar amounts
are made at fluctuating prices, the aggregate average cost per unit will be less
than the average of the unit prices on the same purchase dates. However,
participation in this program does not assure you of a greater profit from your
purchases under the Program nor will it prevent or necessarily reduce losses in
a declining market.
Call or write us for instructions on how to enroll.
AUTOMATIC FUND REBALANCING PROGRAM
Once you have allocated your money among the Variable Sub-Accounts, the
performance of each Sub-Account may cause a shift in the percentage you
allocated to each Sub-Account. If you select our Automatic Fund Rebalancing
Program, we will automatically rebalance the Contract Value in each Variable
Sub-Account and return it to the desired percentage allocations. Money you
allocate to the Fixed Account will not be included in the rebalancing.
We will rebalance your account each quarter according to your instructions. We
will transfer amounts among the Variable Sub-Accounts to achieve the percentage
allocations you specify. You can change your allocations at any time by
contacting us in writing or by telephone. The new allocation will be effective
with the first rebalancing that occurs after we receive your request. We are not
responsible for rebalancing that occurs prior to receipt of your request.
Example:
Assume that you want your initial purchase payment split among 2 Variable
Sub-Accounts. You want 40% to be in the AIM V.I. Diversified Income
Variable Sub-Account and 60% to be in the AIM V.I. Growth Variable
Sub-Account. Over the next 2 months the bond market does very well while
the stock market performs poorly. At the end of the first quarter, the AIM
V.I. Diversified Income Variable Sub-Account now represents 50% of your
holdings because of its increase in value. If you choose to have your
holdings rebalanced quarterly, on the first day of the next quarter we
would sell some of your units in the AIM V.I. Diversified Income Variable
Sub-Account and use the money to buy more units in the AIM V.I. Growth
Variable Sub-Account so that the percentage allocations would again be 40%
and 60% respectively.
The Automatic Fund Rebalancing Program is available only during the Accumulation
Phase. The transfers made under the Program do not count towards the 12
transfers you can make without paying a transfer fee, and are not subject to a
transfer fee.
Fund rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your Contract
Value allocated to the better performing segments.
<PAGE>
EXPENSES
As a Contract owner, you will bear, directly or indirectly, the charges and
expenses described below.
CONTRACT MAINTENANCE CHARGE
During the Accumulation Phase, on each Contract Anniversary, we will deduct a
$35 contract maintenance charge from your Contract Value invested in each
Variable Sub-Account in proportion to the amount invested. We also will deduct a
full contract maintenance charge if you withdraw your entire Contract Value,
unless your Contract qualifies for a waiver, described below. During the Payout
Phase, we will deduct the charge proportionately from each income payment.
The charge is for the cost of maintaining each Contract and the Variable
Account. Maintenance costs include expenses we incur in billing and collecting
purchase payments; keeping records; processing death claims, cash withdrawals,
and policy changes; proxy statements; calculating Accumulation Unit Values and
income payments; and issuing reports to Contract owners and regulatory agencies.
We cannot increase the charge. We will waive this charge if:
o total purchase payments equal $50,000 or more, or
o all money is allocated to the Fixed Account on a Contract Anniversary.
MORTALITY AND EXPENSE RISK CHARGE
We deduct a mortality and expense risk charge daily at an annual rate of 1.35%
of the average daily net assets you have invested in the Variable Sub-Accounts.
The mortality and expense risk charge is for all the insurance benefits
available with your Contract (including our guarantee of annuity rates and the
death benefits), for certain expenses of the Contract, and for assuming the risk
(expense risk) that the current charges will be sufficient in the future to
cover the cost of administering the Contract. If the charges under the Contract
are not sufficient, then we will bear the loss.
We guarantee the mortality and expense risk charge and we cannot increase it. We
assess the mortality and expense risk charge during both the Accumulation Phase
and the Payout Phase.
ADMINISTRATIVE EXPENSE CHARGE
We deduct an administrative expense charge daily at an annual rate of 0.10% of
the average daily net assets you have invested in the Variable Sub-Accounts. We
intend this charge to cover actual administrative expenses that exceed the
revenues from the contract maintenance charge. There is no necessary
relationship between the amount of administrative charge imposed on a given
Contract and the amount of expenses that may be attributed to that Contract. We
assess this charge each day during the Accumulation Phase and the Payout Phase.
We guarantee that we will not raise this charge.
TRANSFER FEE
We do not currently impose a fee upon transfers among the investment
alternatives. However, we reserve the right to charge $10 per transfer after the
12th transfer in each Contract Year. We will not charge a transfer fee on
transfers that are part of a Dollar Cost Averaging Program or Automatic Fund
Rebalancing Program.
<PAGE>
WITHDRAWAL CHARGE
We may assess a withdrawal charge of up to 7% of the purchase payment(s) you
withdraw in excess of the Preferred Withdrawal Amount, adjusted by a Market
Value Adjustment. The charge declines annually to 0% after 7 complete years from
the day we receive the purchase payment being withdrawn. A schedule showing how
the charge declines appears on page __. During each Contract Year, you can
withdraw up to 10% of purchase payments without paying the charge. Unused
portions of this 10% "Preferred Withdrawal Amount" are not carried forward to
future Contract Years.
We determine the withdrawal charge by:
o multiplying the percentage corresponding to the number of complete years
since we received the purchase payment being withdrawn by
o the part of each purchase payment withdrawal that is in excess of the
Preferred Withdrawal Amount, adjusted by a Market Value Adjustment.
We will deduct withdrawal charges, if applicable, from the amount paid. For
purposes of the withdrawal charge, we will treat withdrawals as coming from the
oldest purchase payments first. However, for federal income tax purposes, please
note that withdrawals are considered to have come first from earnings in the
Contract. Thus, for tax purposes, earnings are considered to come out first,
which means you pay taxes on the earnings portion of your withdrawal.
We do not apply a withdrawal charge in the following situations:
o on the Payout Start Date (a withdrawal charge may apply if you elect to
receive income payments for a specified period of less than 120 months);
o the death of the Contract Owner or Annuitant (unless the Settlement Value
is used);
o withdrawals taken to satisfy IRS minimum distribution rules for the
Contract; or
o withdrawals made after all purchase payments have been withdrawn.
We use the amounts obtained from the withdrawal charge to pay sales commissions
and other promotional or distribution expenses associated with marketing the
Contracts. To the extent that the withdrawal charge does not cover all sales
commissions and other promotional or distribution expenses, we may use any of
our corporate assets, including potential profit which may arise from the
mortality and expense risk charge or any other charges or fee described above,
to make up any difference.
Withdrawals may be subject to tax penalties or income tax and a Market Value
Adjustment. You should consult your own tax counsel or other tax advisers
regarding any withdrawals.
We reserve the right to waive the withdrawal charge with respect to Contracts
issued to employees and registered representatives of any broker-dealer that has
entered into a sales agreement with ALFS, Inc. ("ALFS") to sell the Contracts
and all wholesalers and their employees that are under agreement with ALFS to
wholesale the Contract.
PREMIUM TAXES
Currently, we do not make deductions for premium taxes under the Contract
because New York does not charge premium taxes on annuities. We may deduct taxes
that may be imposed in the future from purchase payments or the Contract Value
when the tax is incurred or at a later time.
DEDUCTION FOR VARIABLE ACCOUNT INCOME TAXES
We are not currently making a provision for taxes. In the future, however, we
may make a provision for taxes if we determine, in our sole discretion, that we
will incur a tax as a result of the operation of the Variable Account. We will
deduct for any taxes we incur as a result of the operation of the Variable
Account, whether or not we previously made a provision for taxes and whether or
not it was sufficient. Our status under the Internal Revenue Code is briefly
described in the Statement of Additional Information.
OTHER EXPENSES
Each Fund deducts advisory fees and other expenses from its assets. You
indirectly bear the charges and expenses of the Funds whose shares are held by
the Variable Sub-Accounts. These fees and expenses are described in the
accompanying prospectus for the Funds. For a summary of these charges and
expenses, see pages ____ above. We may receive compensation from A I M Advisors,
Inc., for administrative services we provide to the Funds.
<PAGE>
ACCESS TO YOUR MONEY
You can withdraw some or all of your Contract Value at any time prior to the
Payout Start Date. Withdrawals also are available under limited circumstances on
or after the Payout Start Date. See "Income Plans" on page ___.
The amount payable upon withdrawal is the Contract Value next computed after we
receive the request for a withdrawal at our service center, adjusted by any
Market Value Adjustment, less any withdrawal charges, contract maintenance
charges, income tax withholding, penalty tax, and any premium taxes. We will pay
withdrawals from the Variable Account within 7 days of receipt of the request,
subject to postponement in certain circumstances.
You can withdraw money from the Variable Account or the Fixed Account. To
complete a partial withdrawal from the Variable Account, we will cancel
Accumulation Units in an amount equal to the withdrawal and any applicable
withdrawal charge and premium taxes.
You must name the investment alternative from which you are taking the
withdrawal. If none is named, then the withdrawal request is incomplete and
cannot be honored.
In general, you must withdraw at least $50 at a time. You also may withdraw a
lesser amount if you are withdrawing your entire interest in a Variable
Sub-Account.
If you request a total withdrawal, we may require that you return your Contract
to us.
POSTPONEMENT OF PAYMENTS
We may postpone the payment of any amounts due from the Variable Account under
the Contract if:
1) The New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on the Exchange is otherwise restricted;
2) An emergency exists as defined by the SEC; or
3) The SEC permits delay for your protection.
In addition, we may delay payments or transfers from the Fixed Account for up to
6 months or shorter period if required by law. If we delay payment or transfer
for 10 days or more, we will pay interest as required by law. Any interest would
be payable from the date we receive the withdrawal request to the date we make
the payment or transfer.
SYSTEMATIC WITHDRAWAL PROGRAM
You may choose to receive systematic withdrawal payments on a monthly,
quarterly, semi-annual, or annual basis at any time prior to the Payout Start
Date. The minimum amount of each systematic withdrawal is $50. At our
discretion, systematic withdrawals may not be offered in conjunction with the
Dollar Cost Averaging or the Automatic Fund Rebalancing Programs.
Depending on fluctuations in the value of the Variable Sub-Accounts and the
value of the Fixed Account, systematic withdrawals may reduce or even exhaust
the Contract Value. Income taxes may apply to systematic withdrawals. Please
consult your tax advisor before taking any withdrawal.
We will make systematic withdrawal payments to you or your designated payee. We
may modify or suspend the Systematic Withdrawal Program and charge a processing
fee for the service. If we modify or suspend the Systematic Withdrawal Program,
existing systematic withdrawal payments will not be affected.
MINIMUM CONTRACT VALUE
If your request for a partial withdrawal would reduce the amount in any
Guarantee Period to less than $500, we will treat it as a request to withdraw
the entire amount invested in such Guarantee Period. In addition, if your
request for a partial withdrawal would reduce the Contract Value to less than
$1,000, we may treat it as a request to withdraw your entire Contract Value.
Your Contract will terminate if you withdraw all of your Contract Value. We
will, however, ask you to confirm your withdrawal request before terminating
your Contract. If we terminate your Contract, we will distribute to you its
Contract Value, adjusted by any applicable Market Value Adjustment, less
withdrawal and other charges, and applicable taxes. Your Contract will terminate
if you withdraw all of your Contract Value.
<PAGE>
INCOME PAYMENTS
PAYOUT START DATE
The Payout Start Date is the day that we apply your money to an Income Plan. The
Payout Start Date must be no later than the Annuitant's 90th birthday.
You may change the Payout Start Date at any time by notifying us in writing of
the change at least 30 days before the scheduled Payout Start Date. Absent a
change, we will use the Payout Start Date stated in your Contract.
INCOME PLANS
An "Income Plan" is a series of payments on a scheduled basis to you or to
another person designated by you. You may choose and change your choice of
Income Plan until 30 days before the Payout Start Date. If you do not select an
Income Plan, we will make income payments in accordance with Income Plan 1 with
guaranteed payments for 10 years. After the Payout Start Date, you may not make
withdrawals (except as described below) or change your choice of Income Plan.
Three Income Plans are available under the Contract. Each is available to
provide:
o fixed income payments;
o variable income payments; or
o a combination of the two.
The three Income Plans are:
Income Plan 1 -- Life Income with Guaranteed Payments. Under this plan, we
make periodic income payments for at least as long as the Annuitant lives.
If the Annuitant dies before we have made all of the guaranteed income
payments, we will continue to pay the remainder of the guaranteed income
payments as required by the Contract.
Income Plan 2 -- Joint and Survivor Life Income with Guaranteed Payments.
Under this plan, we make periodic income payments for at least as long as
either the Annuitant or the joint Annuitant is alive. If both the Annuitant
and the joint Annuitant die before we have made all of the guaranteed
income payments, we will continue to pay the remainder of the guaranteed
income payments as required by the Contract.
Income Plan 3 - Guaranteed Payments for a Specified Period (5 Years to 30
Years). Under this plan, we make periodic income payments for the period
you have chosen. These payments do not depend on the Annuitant's life.
Income payments for less than 120 months may be subject to a withdrawal
charge. We will deduct the mortality and expense risk charge from the
Variable Sub-Account assets that support the variable income payments even
though we may not bear any mortality risk.
The length of any guaranteed payment period under your selected Income Plan
generally will affect the dollar amounts of each income payment. As a general
rule, longer guarantee periods result in lower income payments, all other things
being equal. For example, if you choose an Income Plan with payments that depend
on the life of the Annuitant but with no minimum specified period for guaranteed
payments, the income payments generally will be greater than the income payments
made under the same Income Plan with a minimum specified period for guaranteed
payments.
If you choose Income Plan 1 or 2, or, if available, another Income Plan with
payments that continue for the life of the Annuitant or joint Annuitant, we may
require proof of age and sex of the Annuitant or joint Annuitant before starting
income payments, and proof that the Annuitant or joint Annuitant is alive before
we make each payment. Please note that under such Income Plans, if you elect to
take no minimum guaranteed payments, it is possible that the payee could receive
only 1 income payment if the Annuitant and any joint Annuitant both die before
the second income payment, or only 2 income payments if they die before the
third income payment, and so on.
<PAGE>
Generally, you may not make withdrawals after the Payout Start Date. One
exception to this rule applies if you are receiving variable income payments
that do not depend on the life of the Annuitant (such as under Income Plan 3).
In that case you may terminate all or part of the Variable Account portion of
the income payments at any time and receive a lump sum equal to the present
value of the remaining variable payments associated with the amount withdrawn.
The minimum amount you may withdraw under this feature is $1,000. A withdrawal
charge may apply. We deduct applicable premium taxes from the Contract Value at
the Payout Start Date.
We may make other Income Plans available. You may obtain information about them
by writing or calling us.
You must apply at least the Contract Value in the Fixed Account on the Payout
Start Date to fixed income payments. If you wish to apply any portion of your
Fixed Account balance to provide variable income payments, you should plan ahead
and transfer that amount to the Variable Sub-Accounts prior to the Payout Start
Date. If you do not tell us how to allocate your Contract Value among fixed and
variable income payments, we will apply your Contract Value in the Variable
Account to variable income payments and your Contract Value in the Fixed Account
to fixed income payments.
We will apply your Contract Value, adjusted by a Market Value Adjustment, less
applicable taxes to your Income Plan on the Payout Start Date. If the amount
available to apply under an Income Plan is less than $2,000 or not enough to
provide an initial payment of at least $20, and state law permits, we may:
o pay you the Contract Value, adjusted by any Market Value Adjustment
and less any applicable taxes, in a lump sum instead of the periodic
payments you have chosen; or
o reduce the frequency of your payments so that each payment will be at
least $20.
VARIABLE INCOME PAYMENTS
The amount of your variable income payments depends upon the investment results
of the Variable Sub-Accounts you select, the premium taxes you pay, the age and
sex of the Annuitant, and the Income Plan you choose. We guarantee that the
payments will not be affected by (a) actual mortality experience and (b) the
amount of our administration expenses.
We cannot predict the total amount of your variable income payments. Your
variable income payments may be more or less than your total purchase payments
because (a) variable income payments vary with the investment results of the
underlying Funds and (b) the Annuitant could live longer or shorter than we
expect based on the tables we use.
In calculating the amount of the periodic payments in the annuity tables in the
Contract, we assumed an annual investment rate of 3%. If the actual net
investment return of the Variable Sub-Accounts you choose is less than this
assumed investment rate, then the dollar amount of your variable income payments
will decrease. The dollar amount of your variable income payments will increase,
however, if the actual net investment return exceeds the assumed investment
rate. The dollar amount of the variable income payments stays level if the net
investment return equals the assumed investment rate. Please refer to the
Statement of Additional Information for more detailed information as to how we
determine variable income payments.
FIXED INCOME PAYMENTS
We guarantee income payment amounts derived from the Fixed Account for the
duration of the Income Plan. We calculate the fixed income payments by:
1) adjusting the portion of the Contract Value in the Fixed Account on the
Payout Start Date by any applicable Market Value Adjustment;
2) deducting any applicable premium tax; and
3) applying the resulting amount to the greater of (a) the appropriate value
from the income payment table in your Contract or (b) such other value as
we are offering at that time.
We may defer making fixed income payments for a period of up to 6 months or such
shorter time as state law may require. If we defer payments for 10 business days
or more, we will pay interest as required by law from the date we receive the
withdrawal request to the date we make payment.
<PAGE>
CERTAIN EMPLOYEE BENEFIT PLANS
The Contracts offered by this prospectus contain income payment tables that
provide for different payments to men and women of the same age. However, we
reserve the right to use income payment tables that do not distinguish on the
basis of sex to the extent permitted by law. In certain employment-related
situations, employers are required by law to use the same income payment tables
for men and women. Accordingly, if the Contract is to be used in connection with
an employment-related retirement or benefit plan, you should consult with legal
counsel as to whether the purchase of a Contract is appropriate. For qualified
plans, where it is appropriate, we may use income payment tables that do not
distinguish on the basis of sex.
DEATH BENEFITS
We will pay a death benefit if, prior to the Payout Start Date:
1) any Contract owner dies; or
2) the Annuitant dies, if the Contract owner is not a natural person.
We will pay the death benefit to the new Contract owner as determined
immediately after the death. The new Contract owner would be a surviving
Contract owner or, if none, the Beneficiary(ies). In the case of the death of an
Annuitant, we will pay the death benefit to the current Contract owner.
DEATH BENEFIT AMOUNT
Prior to the Payout Start Date, the death benefit is equal to the greatest of:
1) the Contract Value as of the date we determine the death benefit; or
2) the Settlement Value (that is, the amount payable on a full withdrawal of
Contract Value) on the date we determine the death benefit; or
3) the Contract Value on the Death Benefit Anniversary immediately preceding
the date we determine the death benefit, adjusted by any purchase payments,
partial withdrawals and charges made since that Death Benefit Anniversary.
A "Death Benefit Anniversary" is every seventh Contract Anniversary
beginning with the Issue Date. For example, the Issue Date, 7th and 14th
Contract Anniversaries are the first three Death Benefit Anniversaries; or
4) the greatest of the Anniversary Values as of the date we determine the
death benefit. An "Anniversary Value" is equal to the Contract Value on a
Contract Anniversary, increased by purchase payments made since that
Anniversary and reduced by the amount of any partial withdrawals since that
anniversary. Anniversary Values will be calculated for each Contract
Anniversary prior to the earlier of:
(i) the date we determine the death benefit; or
(ii) the deceased's 75th birthday or 5 years after the Issue Date, if
later.
We will determine the value of the death benefit as of the end of the Valuation
Date on which we receive a complete request for payment of the death benefit,
which includes Due Proof of Death. If we receive a request after 4:00 p.m.
Eastern Time (3:00 p.m. Central Time) on a Valuation Date, we will process the
request as of the end of the following Valuation Date.
We will not settle any death claim until we receive Due Proof of Death. We will
accept the following documentation as Due Proof of Death:
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.
<PAGE>
DEATH BENEFIT PAYMENTS
A death benefit will be paid:
1) if the Contract owner elects to receive the death benefit distributed in a
single payment within 180 days of the date of death, and
2) if the death benefit is paid as of the day the value of the death benefit is
determined.
Otherwise, the Settlement Value will be paid. We are currently waiving the 180
day limit, but we reserve the right to enforce the limitation in the future. The
Settlement Value paid will be the Settlement Value next computed on or after the
requested distribution date for payment, or on the mandatory distribution date
of 5 years after the date of death. The Contract owner may make a single
withdrawal of any amount within one year of the date of death without incurring
a withdrawal charge. However, any applicable Market Value Adjustment, determined
as of the date of the withdrawal, will apply.
In any event, the entire value of the Contract must be distributed within 5
years after the date of death unless an Income Plan is elected or a surviving
spouse continues the Contract in accordance with the provisions described below.
If the Contract owner eligible to receive the death benefit is not a natural
person, the Contract owner may elect to receive the distribution upon death in
one or more distributions.
If the Contract owner is a natural person, the Contract owner may elect to
receive the distribution upon death either in one or more distributions, or by
periodic payments through an Income Plan. Payments from the Income Plan must
begin within one year of the date of death and must be payable throughout:
o the life of the Contract owner; or
o a period not to exceed the life expectancy of the Contract owner; or
o the life of the Contract owner with payments guaranteed to a period not to
exceed the life expectancy of the Contract owner.
If the surviving spouse of the deceased Contract owner is the new Contract
owner, then the spouse may elect one of the options listed above or may continue
the Contract in the Accumulation Phase as if the death had not occurred. The
Contract may only be continued once. If the Contract is continued in the
Accumulation Phase, the surviving spouse may make a single withdrawal of any
amount within one year of the date of death without incurring a withdrawal
charge. However, any applicable Market Value Adjustment, determined as of the
date of the withdrawal, will apply.
<PAGE>
MORE 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 One Allstate Drive, Farmingville, New York 11738. Our service center is
located in Palatine, 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 an AA+ (Very Strong)
financial strength rating and Moody's assigns an Aa2 (Excellent) financial
strength rating to Allstate New York. These ratings do not reflect the
investment performance of the Variable Account. We may from time to time
advertise these ratings in our sales literature.
THE VARIABLE ACCOUNT
Allstate 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 multiple Variable Sub-Accounts, 17 of which are
available through the Contracts. Each Variable Sub-Account invests in a
corresponding Fund. We may add new Variable Sub-Accounts or eliminate one or
more of them, if we believe marketing, tax, or investment conditions so warrant.
We do not guarantee the investment performance of the Variable Account, its
Sub-Accounts or the Funds. We may use the Variable Account to fund our other
annuity contracts. We will account separately for each type of annuity contract
funded by the Variable Account.
<PAGE>
THE FUNDS
Dividends and Capital Gain Distributions. We automatically reinvest all
dividends and capital gains distributions from the Funds in shares of the
distributing Fund at their net asset value.
Voting Privileges. As a general matter, you do not have a direct right to vote
the shares of the Funds held by the Variable Sub-Accounts to which you have
allocated your Contract Value. Under current law, however, you are entitled to
give us instructions on how to vote those shares on certain matters. Based on
our present view of the law, we will vote the shares of the Funds that we hold
directly or indirectly through the Variable Account in accordance with
instructions that we receive from Contract owners entitled to give such
instructions.
As a general rule, before the Payout Start Date, the Contract owner or anyone
with a voting interest is the person entitled to give voting instructions. The
number of shares that a person has a right to instruct will be determined by
dividing the Contract Value allocated to the applicable Variable Sub-Account by
the net asset value per share of the corresponding Fund as of the record date of
the meeting. After the Payout Start Date, the person receiving income payments
has the voting interest. The payee's number of votes will be determined by
dividing the reserve for such Contract allocated to the applicable Variable
Sub-Account by the net asset value per share of the corresponding Fund. The
votes decrease as income payments are made and as the reserves for the Contract
decrease.
We will vote shares attributable to Contracts for which we have not received
instructions, as well as shares attributable to us, in the same proportion as we
vote shares for which we have received instructions, unless we determine that we
may vote such shares in our own discretion. We will apply voting instructions to
abstain on any item to be voted on a pro-rata basis to reduce the votes eligible
to be cast.
We reserve the right to vote Fund shares as we see fit without regard to voting
instructions to the extent permitted by law. If we disregard voting
instructions, we will include a summary of that action and our reasons for that
action in the next semi-annual financial report we send to you.
Changes in Funds. If the shares of any of the Funds are no longer available for
investment by the Variable Account or if, in our judgment, further investment in
such shares is no longer desirable in view of the purposes of the Contract, we
may eliminate that Fund and substitute shares of another eligible investment
fund. Any substitution of securities will comply with the requirements of the
1940 Act. We also may add new Variable Sub-Accounts that invest in additional
mutual funds. We will notify you in advance of any changes.
Conflicts of Interest. Certain of the Funds sell their shares to Variable
Accounts underlying both variable life insurance and variable annuity contracts.
It is conceivable that in the future it may be unfavorable for variable life
insurance Variable Accounts and variable annuity Variable Accounts to invest in
the same Fund. The boards of directors of these Funds monitor for possible
conflicts among Variable Accounts buying shares of the Funds. Conflicts could
develop for a variety of reasons. For example, differences in treatment under
tax and other laws or the failure by a Variable Account to comply with such laws
could cause a conflict. To eliminate a conflict, a Fund's board of directors may
require a Variable Account to withdraw its participation in a Fund. A Fund's net
asset value could decrease if it had to sell investment securities to pay
redemption proceeds to a Variable Account withdrawing because of a conflict.
<PAGE>
THE CONTRACT
Distribution. ALFS, Inc.* ("ALFS"), located at 3100 Sanders Road, Northbrook,
Illinois 60062, serves as principal underwriter of the Contracts. ALFS is a
wholly owned subsidiary of Allstate Life Insurance Company. ALFS is a registered
broker dealer under the Securities and Exchange Act of 1934, as amended
("Exchange Act"), and is a member of the National Association of Securities
Dealers, Inc.
We will pay commissions to broker-dealers who sell the Contracts. Commissions
paid may vary, but we estimate that the total commissions paid on all Contract
sales will not exceed 8% of any purchase payments. Sometimes, we also pay the
broker-dealer a persistency bonus in addition to the standard commissions. A
persistency bonus is not expected to exceed .56%, on an annual basis, of the
purchase payments considered in connection with the bonus. These commissions are
intended to cover distribution expenses.
Allstate New York does not pay ALFS a commission for distribution of the
Contracts. The underwriting agreement with ALFS provides that we will reimburse
ALFS for any liability to Contract owners arising out of services rendered or
Contracts issued.
Administration. We have primary responsibility for all administration of the
Contracts and the Variable Account. We provide the following administrative
services, among others:
o issuance of the Contracts;
o maintenance of Contract owner records;
o Contract owner services;
o calculation of unit values;
o maintenance of the Variable Account; and
o preparation of Contract owner reports.
We will send you Contract statements and transaction confirmations at least
annually. The annual statement details values and specific Contract data for
each particular Contract. You should notify us promptly in writing of any
address change. You should read your statements and confirmations carefully and
verify their accuracy. You should contact us promptly if you have a question
about a periodic statement. We will investigate all complaints and make any
necessary adjustments retroactively, but you must notify us of a potential error
within a reasonable time after the date of the questioned statement. If you wait
too long, we will make the adjustment as of the date that we receive notice of
the potential error.
We also will provide you with additional periodic and other reports, information
and prospectuses as may be required by federal securities laws.
- ------------
*Effective May 1, 2000, Allstate Life Financial Services, Inc. was renamed ALFS,
Inc.
<PAGE>
QUALIFIED PLANS
If you use the Contract with a qualified plan, the plan may impose different or
additional conditions or limitations on withdrawals, waivers of withdrawal
charges, death benefits, Payout Start Dates, income payments, and other Contract
features. In addition, adverse tax consequences may result if qualified plan
limits on distributions and other conditions are not met. Please consult your
qualified plan administrator for more information.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate New York
on certain federal securities law matters. All matters of New York law
pertaining to the Contracts, including the validity of the Contracts and
Allstate 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.
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 have failed to operate properly in or after the year 1999, if the
software was not reprogrammed or replaced ("Year 2000 Issue"). Allstate New York
believes that many of its counterparties and suppliers also had potential Year
2000 Issues that could affect Allstate New York. In 1995, Allstate Insurance
Company commenced a four-phase plan intended to mitigate and/or prevent the
adverse effects of Year 2000 Issues. These strategies included 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 included 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.
Because of the accuracy of this plan, and its timely completion, Allstate New
York has experienced no material impacts on its results of operations, liquidity
or financial position due to the Year 2000 issue. Year 2000 costs are expensed
as incurred.
<PAGE>
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 Contract 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 the Contract are different than those described by the IRS in
rulings in which it found that contract owners were not owners of Variable
Account assets. For example, you have the choice to allocate premiums and
Contract Values among more investment alternatives. Also, you may be able to
transfer among investment alternatives more frequently than in such rulings.
These differences could result in you being treated as the owner of the Variable
Account. If this occurs, income and gain from the Variable Account assets would
be includible in your gross income. Allstate New York does not know what
standards will be set forth in any regulations or rulings which the Treasury
Department may issue. It is possible that future standards announced by the
Treasury Department could adversely affect the tax treatment of your Contract.
We reserve the right to modify the Contract as necessary to attempt to prevent
you from being considered the federal tax owner of the assets of the Variable
Account. However, we make no guarantee that such modification to the Contract
will be successful.
<PAGE>
Taxation of Partial and Full Withdrawals. If you make a partial withdrawal under
a non-Qualified Contract, amounts received are taxable to the extent the
Contract Value, without regard to surrender charges, exceeds the investment in
the Contract. The investment in the Contract is the gross premium paid for the
Contract minus any amounts previously received from the Contract if such amounts
were properly excluded from your gross income. If you make a partial withdrawal
under a Qualified Contract, the portion of the payment that bears the same ratio
to the total payment that the investment in the Contract (i.e., nondeductible
IRA contributions, after tax contributions to qualified plans) bears to the
contract value, is excluded from your income. If you make a full withdrawal
under a non-Qualified Contract or a Qualified Contract, the amount received will
be taxable only to the extent it exceeds the investment in the contract.
"Nonqualified distributions" from Roth IRAs are treated as made from
contributions first and are included in gross income only to the extent that
distributions exceed contributions. "Qualified distributions" from Roth IRAs are
not included in gross income. "Qualified distributions" are any distributions
made more than 5 taxable years after the taxable year of the first contribution
to any Roth IRA and which are:
o made on or after the date the individual attains age 59 1/2,
o made to a beneficiary after the Contract owner's death,
o attributable to the Contract owner being disabled, or
o for a first time home purchase (first time home purchases are subject
to a lifetime limit of $10,000).
If you transfer a non-Qualified Contract without full and adequate consideration
to a person other than your spouse (or to a former spouse incident to a
divorce), you will be taxed on the difference between the Contract Value and the
investment in the Contract at the time of transfer. Except for certain Qualified
Contracts, any amount you receive as a loan under a Contract, and any assignment
or pledge (or agreement to assign or pledge) of the Contract Value is treated as
a withdrawal of such amount or portion.
Taxation of Annuity Payments. Generally, the rule for income taxation of annuity
payments received from a non-Qualified Contract provides for the return of your
investment in the Contract in equal tax-free amounts over the payment period.
The balance of each payment received is taxable. For fixed annuity payments, the
amount excluded from income is determined by multiplying the payment by the
ratio of the investment in the Contract (adjusted for any refund feature or
period certain) to the total expected value of annuity payments for the term of
the contract. If you elect variable annuity payments, the amount excluded from
taxable income is determined by dividing the investment in the Contract by the
total number of expected payments. The annuity payments will be fully taxable
after the total amount of the investment in the Contract is excluded using these
ratios. If you die, and annuity payments cease before the total amount of the
investment in the Contract is recovered, the unrecovered amount will be allowed
as a deduction for your last taxable year.
<PAGE>
Taxation of Annuity Death Benefits. Death of a Contract owner, or death of the
Annuitant if the Contract is owned by a non-natural person, will cause a
distribution of death benefits from a Contract. Generally, such amounts are
included in income as follows:
1) if distributed in a lump sum, the amounts are taxed in the same manner as a
full withdrawal; or
2) if distributed under an annuity option, the amounts are taxed in the same
manner as an annuity payment. Please see the Statement of Additional
Information for more detail on distribution at death requirements.
Penalty Tax on Premature Distributions. A 10% penalty tax applies to the taxable
amount of any premature distribution from a non-Qualified Contract. The penalty
tax generally applies to any distribution made prior to the date you attain age
59 1/2. However, no penalty tax is incurred on distributions:
1) made on or after the date the Contract owner attains age 59 1/2;
2) made as a result of the Contract owner's death or disability;
3) made in substantially equal periodic payments over the owner's life
or life expectancy;
4) made under an immediate annuity; or
5) attributable to investment in the contract before August 14, 1982.
You should consult a competent tax advisor to determine if any other exceptions
to the penalty apply to your situation. Similar exceptions may apply to
distributions from Qualified Contracts.
Aggregation of Annuity Contracts. All non-qualified deferred annuity contracts
issued by Allstate New York (or its affiliates) to the same Contract owner
during any calendar year will be aggregated and treated as one annuity contract
for purposes of determining the taxable amount of a distribution.
<PAGE>
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.
The income on qualified plans and IRA investments is tax deferred and variable
annuities held by such plans do not receive any additional tax deferral. You
should review the annuity features, including all benefits and expenses, prior
to purchasing a variable annuity in a qualified plan or IRA. Allstate New York
reserves the right to limit the availability of the Contract for use with any of
the Qualified Plans listed above. In the case of certain qualified plans, the
terms of the plans may govern the right to benefits, regardless of the terms of
the Contract.
Restrictions Under Section 403(b) Plans. Section 403(b) of the Tax Code provides
tax-deferred retirement savings plans for employees of certain non-profit and
educational organizations. Under Section 403(b), any Contract used for a 403(b)
plan must provide that distributions attributable to salary reduction
contributions made after December 31, 1998, and all earnings on salary reduction
contributions, may be made only:
1) on or after the date the employee:
o attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
2) on account of hardship (earnings on salary reduction contributions may not be
distributed on 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.
<PAGE>
ANNUAL REPORTS AND OTHER DOCUMENTS
Allstate New York's annual report on Form 10-K for the year ended December 31,
1999 is incorporated herein by reference, which means that it is legally a part
of this prospectus.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Exchange Act are also incorporated herein by reference, which means
that they also legally become a part of this prospectus.
Statements in this prospectus, or in documents that we file later with the SEC
and that legally become a part of this prospectus, may change or supersede
statements in other documents that are legally part of this prospectus.
Accordingly, only the statement that is changed or replaced will legally be a
part of this prospectus.
We file our Exchange Act documents and reports, including our annual and
quarterly reports on Form 10-K and Form 10-Q electronically on the SEC's "EDGAR"
system using the identifying number CIK No. 0000948255. The SEC maintains a Web
site that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the SEC. The
address of the site is http://www.sec.gov. You also can view these materials at
the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. For more information on the operations of SEC's Public Reference Room,
call 1-800-SEC-0330.
If you have received a copy of this prospectus, and would like a free copy of
any document incorporated herein by reference (other than exhibits not
specifically incorporated by reference into the text of such documents), please
write or call us at Customer Service, P.O. Box 94038, Palatine, Illinois
60094-4038 (telephone: 1-800-692-4682).
<PAGE>
PERFORMANCE INFORMATION
We may advertise the performance of the Variable Sub-Accounts, including yield
and total return information. Yield refers to the income generated by an
investment in a Variable Sub-Account over a specified period. Total return
represents the change, over a specified period of time, in the value of an
investment in a Variable Sub-Account after reinvesting all income distributions.
All performance advertisements will include, as applicable, standardized yield
and total return figures that reflect the deduction of insurance charges, the
contract maintenance charge, and withdrawal charge. Performance advertisements
also may include total return figures that reflect the deduction of insurance
charges, but not the contract maintenance or withdrawal charges. The deduction
of such charges would reduce the performance shown. In addition, performance
advertisements may include aggregate, average, year-by-year, or other types of
total return figures.
Performance information for periods prior to the inception date of the Variable
Sub-Accounts will be based on the historical performance of the corresponding
Funds for the periods beginning with the inception dates of the Funds and
adjusted to reflect current Contract expenses. You should not interpret these
figures to reflect actual historical performance of the Variable Account.
We may include in advertising and sales materials tax deferred compounding
charts and other hypothetical illustrations that compare currently taxable and
tax deferred investment programs based on selected tax brackets. Our
advertisements also may compare the performance of our Variable Sub-Accounts
with: (a) certain unmanaged market indices, including but not limited to the Dow
Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman
Bond Index; and/or (b) other management investment companies with investment
objectives similar to the underlying funds being compared. In addition, our
advertisements may include the performance ranking assigned by various
publications, including the Wall Street Journal, Forbes, Fortune, Money,
Barron's, Business Week, USA Today, and statistical services, including Lipper
Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey,
the Variable Annuity Research Data Survey, and SEI.
EXPERTS
The financial statements and related financial statement schedules of Allstate
Life Insurance Company of New York as of December 31, 1999 and 1998 and for each
of the three years in the period ended December 31, 1999, which are incorporated
herein by reference, have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report, which is incorporated herein by reference,
and are included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
The financial statements of the Variable Account as of December 31, 1999 and for
each of the periods in the two years then ended, which are incorporated herein
by reference, have been audited by Deloitte & Touche LLP, independent auditors,
as stated in their report, which is incorporated herein by reference, and are
included in reliance upon the report of such firm given upon their authority as
experts in accounting and auditing.
<PAGE>
<TABLE>
<CAPTION>
APPENDIX A
Accumulation Unit Value and Number of Accumulation Units
Outstanding for Each Variable Sub-Account Since Inception*
For the Period January 1* through December 31 1996 1997 1998 1999
<S> <C> <C> <C> <C>
AIM V.I. AGGRESSIVE GROWTH SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period N/A N/A N/A $10.00
Accumulation Unit Value, End of Period N/A N/A N/A $13.988
Number of Units Outstanding, End of Period N/A N/A N/A 12,661
AIM V.I. BALANCED SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period N/A N/A N/A $10.00
Accumulation Unit Value, End of Period N/A N/A N/A $13.162
Number of Units Outstanding, End of Period N/A N/A N/A 6,382
AIM V.I. CAPITAL APPRECIATION SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $9.855 $11.387 $12.739 $14.979
Accumulation Unit Value, End of Period $11.387 $12.739 $14.979 $21.350
Number of Units Outstanding, End of Period 7,681 161,013 287,336 425,748
AIM V.I. CAPITAL DEVELOPMENT SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period N/A N/A N/A $10.00
Accumulation Unit Value, End of Period N/A N/A N/A $11.655
Number of Units Outstanding, End of Period N/A N/A N/A 3,948
AIM V.I. DIVERSIFIED INCOME SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $10.086 $10.934 $11.789 $12.035
Accumulation Unit Value, End of Period $10.934 $11.789 $12.035 $11.630
Number of Units Outstanding, End of Period 4,618 58,958 146,644 227,201
AIM V.I. GLOBAL UTILITIES SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $10.252 $11.276 $13.518 $15.521
Accumulation Unit Value, End of Period $11.276 $13.518 $15.521 $20.432
Number of Units Outstanding, End of Period 0 8,276 25,418 61,408
AIM V.I. GOVERNMENT SECURITIES SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $10.080 $10.164 $10.834 $11.829
Accumulation Unit Value, End of Period $10.164 $10.834 $11.829 $11.189
Number of Units Outstanding, End of Period 0 39,009 301,983 108,494
AIM V.I. GROWTH SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $9.892 $11.466 $14.338 $18.954
Accumulation Unit Value, End of Period $11.466 $14.338 $18.954 $25.263
Number of Units Outstanding, End of Period 2,384 97,039 220,831 383,214
AIM V.I. GROWTH AND INCOME SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $9.926 $11.699 $14.496 $18.243
Accumulation Unit Value, End of Period $11.699 $14.496 $18.243 $24.138
Number of Units Outstanding, End of Period 5,371 167,625 361,890 645,133
AIM V.I. HIGH YIELD SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period N/A N/A N/A $10.00
Accumulation Unit Value, End of Period N/A N/A N/A $9.957
Number of Units Outstanding, End of Period N/A N/A N/A 1,751
AIM V.I. INTERNATIONAL EQUITY SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $10.168 $11.953 $12.598 $14.340
Accumulation Unit Value, End of Period $11.953 $12.598 $14.340 $21.914
Number of Units Outstanding, End of Period 5,404 85,934 136,898 220,690
<PAGE>
AIM V.I. MONEY MARKET SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $10.023 $10.369 $10.745 $11.126
Accumulation Unit Value, End of Period $10.369 $10.745 $11.126 $11.479
Number of Units Outstanding, End of Period 4,373 42,128 87,010 137,432
AIM V.I. VALUE SUB-ACCOUNT
Accumulation Unit Value, Beginning of Period $9.800 $11.090 $13.520 $17.644
Accumulation Unit Value, End of Period $11.090 $13.520 $17.644 $22.589
Number of Units Outstanding, End of Period 5,921 180,440 405,246 987,077
</TABLE>
*The inception date of the following Variable Sub-Accounts is October 14, 1996:
AIM V.I. Capital Appreciation, AIM V.I. Diversified Income, AIM V.I. Global
Utilities, AIM V.I. Government Securities, AIM V.I. Growth, AIM V.I. Growth and
Income, AIM V.I. International Equity, AIM V.I. Money Market, AIM V.I. Value.
The inception date of the AIM V.I. Aggressive Growth, AIM V.I. Balanced, AIM
V.I. Capital Development and AIM V.I. High Yield Variable Sub-Accounts is
October 25, 1999. No Accumulation Unit data is shown for the AIM V.I. Blue Chip,
AIM V.I. Dent Demographics Trends, AIM V.I. Global Growth and Income and AIM
V.I. Telecommunications and Technology Variable Sub-Accounts which commenced
operations on January 3, 2000. The Accumulation Unit Values in this table
reflect a mortality and expense risk charge of 1.35% and an administrative
expense charge of 0.10%.
<PAGE>
APPENDIX B
MARKET VALUE ADJUSTMENT
The Market Value Adjustment is based on the following:
I = the Treasury Rate for a maturity equal to the applicable Guarantee
Period for the week preceding the establishment of the Guarantee Period.
N = the number of whole and partial years from the date we receive the
withdrawal, transfer or death benefit request, or from the Payout Start
Date to the end of the Guarantee Period.
J = the Treasury Rate for a maturity of length N for the week preceding the
receipt of the withdrawal, transfer, death benefit, or income payment
request. If a note with a maturity of length N is not available, a weighted
average will be used. If N is one year or less, J will be the 1-year
Treasury Rate.
Treasury Rate means the U.S. Treasury Note Constant Maturity yield as
reported in Federal Reserve Bulletin Release
H.15.
The Market Value Adjustment factor is determined from the following formula:
.9 X (I - J) X N
To determine the Market Value Adjustment, we will multiply the Market Value
Adjustment factor by the amount transferred, withdrawn (in excess of the
Preferred Withdrawal Amount), paid as a death benefit, or applied to an Income
Plan, from a Guarantee Period at any time other than during the 30 day period
after such Guarantee Period expires.
<PAGE>
EXAMPLES OF MARKET VALUE ADJUSTMENT
Purchase Payment: $10,000 allocated to a Guarantee Period
Guarantee Period: 5 years
Guaranteed Interest Rate: 4.50%
5 Year Treasury Rate at the time the
Guarantee Period is established: 4.50%
Full Surrender: End of Contract Year 3
NOTE: These examples assume that premium taxes are not applicable.
<TABLE>
<CAPTION>
EXAMPLE 1: (Assumes declining interest rates)
<S> <C> <C> <C> <C> <C>
Step 1. Calculate Contract Value at End of Contract Year 3: $10,000.00 X (1.045)3 = $11,411.66
Step 2. Calculate the Preferred Withdrawal Amount: .10 X $10,000.00 = $1,000.00
Step 3. Calculate the Market Value Adjustment: I = 4.5%
J = 4.2%
730 days
N = 365 days = 2
Market Value Adjustment Factor: .9 X (I-J) X N
= .9 X (.045 - .042) X (730/365) = .0054
Market Value Adjustment
= Market Value Adjustment
Factor X Amount Subject
to Market Value Adjustment:
= .0054 X ($11,411.66-$1,000.00) = $56.22
Step 4. Calculate the Withdrawal Charge: .05 X ($10,000.00 - $1,000.00 + $56.22) =452.81
Step 5. Calculate the amount received by Customers as a
result of full withdrawal at the end of Contract Year 3: $11,411.66 - $452.81 + $56.22 = $11,015.07
<PAGE>
EXAMPLE 2: (Assumes rising interest rates)
Step 1. Calculate Contract Value at End of Contract Year 3: $10,000.00 X (1.045)3 = $11,411.66
Step 2. Calculate the Preferred Withdrawal Amount: .10 X ($10,000.00) = $1,000.00
Step 3. Calculate the Market Value Adjustment: I = 4.5%
J = 4.8%
730 days
N = 365 days = 2
Market Value Adjustment Factor: .9 X (I-J) X N
= .9 X (.045 - .048) X (730/365) = -.0054
Market Value Adjustment = Market Value Adjustment
Factor X Amount Subject to Market Value Adjustment
-.0054 X ($11,411.66 - $1,000) = - $56.22
Step 4. Calculate the Withdrawal Charge:
.05 x ($10,000 - $1,000 - $56.22) = $447.19
Step 5. Calculate the amount received by customers as a
result of full withdrawal at the end of Contract Year 3: $11,411.66 - $447.19 - $56.22 = $10,908.25
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
<S> <C>
Description Page
Additions, Deletions or Substitutions of Investments
The Contract
Purchase of Contracts
Tax-free Exchanges (1035 Exchanges, Rollovers
and Transfers)
Performance Information
Calculation of Accumulation Unit Values
Calculation of Variable Income Payments
General Matters
Incontestability
Settlements
Safekeeping of the Variable Account's Assets
Premium Taxes
Tax Reserves
Federal Tax Matters
Qualified Plans
Experts
Financial Statements
</TABLE>
<PAGE>
This prospectus does not constitute an offering in any jurisdiction in which
such offering may not lawfully be made. We do not authorize anyone to provide
any information or representations regarding the offering described in this
prospectus other than as contained in this prospectus.
[back cover]
<PAGE>
THE AIM LIFETIME PLUS(SM) II VARIABLE ANNUITY
Allstate Life Insurance Company of New York Prospectus dated May 1, 2000
P.O. Box 94038, Palatine, IL 60094-4038
Telephone Number: 1 (800) 692-4682
Allstate Life Insurance Company of New York ("Allstate New York") is offering
the AIM Lifetime Plus(SM) II Variable Annuity, a group flexible premium deferred
variable annuity contract ("Contract"). This prospectus contains information
about the Contract that you should know before investing. Please keep it for
future reference.
The Contract currently offers 19 investment alternatives ("investment
alternatives"). The investment alternatives include 2 fixed account options
("Fixed Account Options") and 17 variable sub-accounts ("Variable Sub-Accounts")
of the Allstate Life of New York Separate Account A ("Variable Account"). Each
Variable Sub-Account invests exclusively in shares of one of the following funds
("Funds") of AIM Variable Insurance Funds:
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. Aggressive Growth Fund AIM V.I. Global Utilities Fund
AIM V.I. Balanced Fund AIM V.I. Government Securities Fund
AIM V.I. Blue Chip Fund AIM V.I. Growth Fund
AIM V.I. Capital Appreciation Fund AIM V.I. Growth and Income Fund
AIM V.I. Capital Development Fund AIM V.I. High Yield Fund
AIM V.I. Dent Demographics Trends Fund AIM V.I. International Equity Fund
AIM V.I. Diversified Income Fund AIM V.I. Money Market Fund
AIM V.I. Global Growth and Income Fund AIM V.I. Telecommunications and Technology Fund*
AIM V.I. Value Fund
* Effective May 1, 2000, the Fund changed its name from AIM V.I.
Telecommunications Fund to AIM V.I. Telecommunications and Technology Fund to
reflect changes in its investment policies. We have made a corresponding change
in the name of the Variable Sub-account that invests in that Fund.
We (Allstate New York) have filed a Statement of Additional Information, dated
May 1, 2000, with the Securities and Exchange Commission ("SEC"). It contains
more information about the Contract and is incorporated herein by reference,
which means it is legally a part of this prospectus. Its table of contents
appears on page __ of this prospectus. For a free copy, please write or call us
at the address or telephone number above, or go to the SEC's Web site
(http:\\www.sec.gov). You can find other information and documents about us,
including documents that are legally part of this prospectus, at the SEC's Web
site (http:\\www.sec.gov).
The Securities and Exchange Commission has not
approved or disapproved the securities described
in this prospectus, nor has it passed on the
accuracy or the adequacy of this prospectus.
Anyone who tells you otherwise is committing a
federal crime.
The Contracts may be distributed through broker-dealers
IMPORTANT that have relationships with banks or other financial
NOTICES institutions or by employees of such banks. However,
the Contracts are not deposits, or obligations
of, or guaranteed by such institutions or any
federal regulatory agency. Investment in the
Contracts involves investment risks, including
possible loss of principal.
The Contracts are not FDIC insured.
The Contracts are only available in New York.
</TABLE>
<PAGE>
TABLE OF CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Page
Important Terms
Overview The Contract at a Glance
How the Contract Works
Expense Table
Financial Information
The Contract
Purchases.
Contract Features Contract Value
Investment Alternatives
The Variable Sub-Accounts
The Fixed Account Options
Transfers
Expenses
Access To Your Money
Income Payments
Death Benefits
More Information:
Allstate New York
The Variable Account
The Funds
Other Information The Contract
Qualified Plans
Legal Matters
Year 2000
Taxes
Annual Reports and Other Documents
Performance Information
Experts
Appendix A -- Market Value Adjustment Examples
Appendix B - Withdrawal Adjustment Example
Statement of Additional Information Table of Contents
</TABLE>
<PAGE>
IMPORTANT TERMS
This prospectus uses a number of important terms that you may not be familiar
with. The index below identifies the page that describes each term. The first
use of each term in this prospectus appears in highlights.
Page
Accumulation Phase
Accumulation Unit
Accumulation Unit Value
Allstate New York ("We")
Anniversary Values
Annuitant
Automatic Additions Program
Automatic Fund Rebalancing Program
Beneficiary
Cancellation Period
*Contract
Contract Anniversary
Contract Owner ("You")
Contract Value
Contract Year
Death Benefit Anniversary
Dollar Cost Averaging Option
Dollar Cost Averaging Program
Due Proof of Death
Enhanced Death Benefit Option
Fixed Account Options
Funds
Guarantee Periods
Income Plan
Investment Alternatives
Issue Date
Market Value Adjustment
Payout Phase
Payout Start Date
Preferred Withdrawal Amount
Qualified Contracts
Right to Cancel
SEC
Settlement Value
Systematic Withdrawal Program
Treasury Rate
Valuation Date
Variable Account
Variable Sub-Account
* The AIM Lifetime Plus(SM) II Variable Annuity is a group contract and your
ownership is represented by certificates. References to "Contract" in this
prospectus include certificates, unless the context requires otherwise.
<PAGE>
THE CONTRACT AT A GLANCE
The following is a snapshot of the Contract. Please read the remainder of this
prospectus for more information.
<TABLE>
<CAPTION>
<S> <C>
Flexible Payments You can purchase a Contract with an initial purchase payment of
$5,000 ($2,000 for "Qualified Contracts," which are Contracts
issued with qualified plans). You can add to your Contract as
often and as much as you like, but each payment must be at
least $500 ($100 for automatic purchase payments to the variable
investment options). You must maintain a minimum account
size of $1,000.
Right to Cancel You may cancel your Contract within 10 days
after receipt ("Cancellation Period").
Upon cancellation, as permitted by
federal or state law, we will
return your purchase payments
adjusted to reflect the investment
experience of any amounts allocated
to the Variable Account.
Expenses You will bear the following expenses:
o Total Variable Account annual
fees equal to 1.10% of average
daily net Assets (1.30% if you
select the Enhanced Death
Benefit Option)
o Annual contract maintenance charge of $35
(with certain exceptions)
o Withdrawal charges ranging from
0% to 7% of payment withdrawn
(with certain exceptions)
o Transfer fee of $10 after 12th transfer
in any Contract Year (fee currently
waived)
o State premium tax (New York
currently does not impose one).
In addition, each Fund pays
expenses that you will bear
indirectly if you invest in a
Variable Sub-Account.
Investment
Alternatives The Contract offers 19 investment
alternatives including:
o 2 Fixed Account Options (which credit
interest at rates we guarantee), and
o 17 Variable Sub-Accounts
investing in Funds offering
professional money management by
A I M Advisors, Inc.
To find out current rates being
paid on the Fixed Account Options,
or to find out how the Variable
Sub-Accounts have performed, please
call us at 1-800-692-4682.
<PAGE>
Special Services For your convenience, we
offer these special services:
o Automatic Fund Rebalancing Program
o Automatic Additions Program
o Dollar Cost Averaging Program
o Systematic Withdrawal Program
Income Payments You can choose fixed
income payments, variable income
payments, or a combination of the
two. You can receive your income
payments in one of the following
ways:
o life income with guaranteed payments
o a joint and survivor life income with
guaranteed payments
o guaranteed payments for a specified
period (5 to 30 years)
Death Benefits If you die before the
Payout Start Date, we will pay
the death benefit described in
the Contract. We also offer an
Enhanced Death Benefit Option.
Transfers Before the Payout Start Date, you
may transfer your Contract value
("Contract Value") among the
investment alternatives, with
certain restrictions.
We do not currently impose a fee
upon transfers. However, we
reserve the right to charge $10
per transfer after the 12th
transfer in each "Contract year,"
which we measure from the date we
issue your contract or a Contract
anniversary ("Contract Anniversary").
<PAGE>
Withdrawals You may withdraw some or all of
your Contract Value at anytime
during the Accumulation Phase. Full
or partial withdrawals are available
under limited circmatances on or after
the Payout Start Date.
In general, you must withdraw at
least $50 at a time. ($1,000
for withdrawals made during the
Payout Phase). A 10% federal tax
penalty may apply if you withdraw
before you are 591/2 years old.
A withdrawal charge and Market Value
Adjustment also may apply.
</TABLE>
<PAGE>
HOW THE CONTRACT WORKS
The Contract basically works in two ways.
First, the Contract can help you (we assume you are the Contract owner) save for
retirement because you can invest in up to 19 investment alternatives and pay no
federal income taxes on any earnings until you withdraw them. You do this during
what we call the "Accumulation Phase" of the Contract. The Accumulation Phase
begins on the date we issue your Contract (we call that date the "Issue Date")
and continues until the Payout Start Date, which is the date we apply your money
to provide income payments. During the Accumulation Phase, you may allocate your
purchase payments to any combination of the Variable Sub-Accounts and/or Fixed
Account Options. If you invest in the Fixed Account Options, you will earn a
fixed rate of interest that we declare periodically. If you invest in any of the
Variable Sub-Accounts, your investment return will vary up or down depending on
the performance of the corresponding Funds.
Second, the Contract can help you plan for retirement because you can use it to
receive retirement income for life and/or for a pre-set number of years, by
selecting one of the income payment options (we call these "Income Plans")
described on page __. You receive income payments during what we call the
"Payout Phase" of the Contract, which begins on the Payout Start Date and
continues until we make the last payment required by the Income Plan you select.
During the Payout Phase, if you select a fixed income payment option, we
guarantee the amount of your payments, which will remain fixed. If you select a
variable income payment option, based on one or more of the Variable
Sub-Accounts, the amount of your payments will vary up or down depending on the
performance of the corresponding Funds. The amount of money you accumulate under
your Contract during the Accumulation Phase and apply to an Income Plan will
determine the amount of your income payments during the Payout Phase.
The timeline below illustrates how you might use your Contract.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Issue Payout Start
Date Accumulation Phase Date Payout Phase
- ----------------------------------------------------------------------------------------------------------------------------->
You save for retirement
| | | |
You buy You elect to receive income You can receive Or you can
a Contract payments or receive a lump income payments receive income
sum payment for a set period payments for life
</TABLE>
As the Contract owner, you exercise all of the rights and privileges provided by
the Contract. If you die, any surviving Contract owner, or if there is none, the
Beneficiary will exercise the rights and privileges provided by the Contract.
See "The Contract." In addition, if you die before the Payout Start Date, we
will pay a death benefit to any surviving Contract owner or, if none, to your
Beneficiary. See "Death Benefits."
Please call us at 1-800-692-4682 if you have any question about how the Contract
works.
<PAGE>
EXPENSE TABLE
The table below lists the expenses that you will bear directly or indirectly
when you buy a Contract. The table and the examples that follow do not reflect
premium taxes because New York currently does not impose premium taxes on
annuities. For more information about Variable Account expenses, see "Expenses,"
below. For more information about Fund expenses, please refer to the
accompanying prospectuses for the Funds.
CONTRACT OWNER TRANSACTION EXPENSES
Withdrawal Charge (as a percentage of purchase payments)*
Number of Complete Years Since We Received the Purchase
Payment Being Withdrawn: 0 1 2 3 4 5 6 7+
Applicable Charge: 7% 6% 5% 4% 3% 2% 1% 0%
Annual Contract Maintenance Charge...................................$35.00**
Transfer Fee........................................................ $10.00***
* Each Contract Year, you may withdraw up to 15% of the Contract Value as
of the beginning of the Contract Year without incurring a withdrawal charge
or Market Value Adjustment.
** We will waive this charge in certain cases. See "Expenses."
***Applies solely to the thirteenth and subsequent transfers within a
Contract Year excluding transfers due to dollar cost averaging or automatic
fund rebalancing. We are currently waiving the transfer fee.
VARIABLE ACCOUNT ANNUAL EXPENSES
(as a percentage of average daily net assets deducted from each
Variable Sub-Account)
Mortality and Expense Risk Charge........................................1.00%*
Administrative Expense Charge.............................................0.10%
Total Variable Account Annual Expenses....................................1.10%
* If you select the Enhanced Death Benefit Option, the mortality and expense
risk charge is 1.20%.
<PAGE>
FUND ANNUAL EXPENSES (after Voluntary Reductions and Reimbursements) (as a
percentage of Portfolio average daily net assets)(1)
<TABLE>
<CAPTION>
Management Total Annual
Fund Fees Other Expenses Fund Expenses
<S> <C> <C> <C> <C>
AIM V.I. Aggressive Growth Fund (2) 0.00% 1.19% 1.19%
AIM V.I. Balanced Fund (2) 0.65% 0.56% 1.21%
AIM V.I. Blue Chip Fund 0.75% 0.55% 1.30%
AIM V.I. Capital Appreciation Fund 0.62% 0.11% 0.73%
AIM V.I. Capital Development Fund (2) 0.00% 1.23% 1.23%
AIM V.I. Dent Demographics Trends Fund 0.85% 0.55% 1.40%
AIM V.I. Diversified Income Fund 0.60% 0.23% 0.83%
AIM V.I. Global Growth and Income Fund(2) 0.97% 0.37% 1.34%
AIM V.I. Global Utilities Fund 0.65% 0.49% 1.14%
AIM V.I. Government Securities Fund 0.50% 0.40% 0.90%
AIM V.I. Growth Fund 0.63% 0.10% 0.73%
AIM V.I. Growth and Income Fund 0.61% 0.16% 0.77%
AIM V.I. High Yield Fund(2) 0.35% 0.79% 1.14%
AIM V.I. International Equity Fund 0.75% 0.22% 0.97%
AIM V.I. Money Market Fund 0.40% 0.20% 0.60%
AIM V.I. Telecommunications and Technology Fund 1.00% 0.27% 1.27%
AIM V.I. Value Fund 0.61% 0.15% 0.76%
(1) Figures shown in the table are for the year ended December 31, 1999, except
for the AIM V.I. Blue Chip, Dent Demographics Trends, Global Growth and
Income, and Telecommunications and Technology Funds which commenced
operations on December 29, 1999, December 29, 1999, October 15, 1999 and
October 15, 1999 respectively. For these funds, the management fee, other
expenses and total annual fund operating expenses are based on estimates
for the Funds' first full fiscal year.
(2) Absent voluntary reductions and reimbursements for certain Funds,
management fees, other expenses, and total annual fund expenses expressed
as a percentage of average net assets of the Funds would have been as
follows:
Management Total Annual
Fund Fees Other Expenses Fund Expenses
AIM V.I. Aggressive Growth Fund 0.80% 1.62% 2.42%
AIM V.I. Balanced Fund 0.75% 0.56% 1.31%
AIM V.I. Capital Development Fund 0.75% 2.67% 3.42%
AIM V.I. Global Growth and Income Fund 1.00% 0.37% 1.37%
AIM V.I. High Yield Fund 0.63% 0.79% 1.42%
</TABLE>
EXAMPLE 1
The example below shows the dollar amount of expenses that you would bear
directly or indirectly if you:
o invested a $1,000 in a Variable Sub-Account,
o earned a 5% annual return on your investment,
o surrendered your Contract, or you began receiving income payments for a
specified period of less than 120 months, at the end of each time period,
and
o elected the Enhanced Death Benefit Option.
The example does not include any tax penalties you may be required to pay if you
surrender your Contract. This example does not include deductions for premium
taxes because New York does not charge premium taxes on annuities.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEAR 10 YEAR
AIM V.I. Aggressive Growth $ 98 $161 $225 $407
AIM V.I. Balanced $ 87 $129 $171 $303
AIM V.I. Blue Chip $ 87 $129 $171 $302
AIM V.I. Capital Appreciation $ 81 $112 $143 $243
AIM V.I. Capital Development $108 $190 $271 $492
AIM V.I. Dent Demographics Trends $ 88 $132 $177 $313
AIM V.I. Diversified Income $ 82 $115 $148 $254
AIM V.I. Global Growth and Income $ 87 $131 $174 $309
AIM V.I. Global Utilities $ 85 $124 $163 $285
AIM V.I. Government Securities $ 83 $117 $151 $261
AIM V.I. Growth $ 81 $112 $143 $243
AIM V.I. Growth and Income $ 81 $113 $145 $247
AIM V.I. High Yield $ 88 $133 $177 $313
AIM V.I. International Equity $ 83 $119 $155 $268
AIM V.I. Money Market $ 80 $108 $136 $229
AIM V.I. Telecommunications and Technology $ 86 $128 $170 $299
AIM V.I. Value $ 81 $113 $144 $246
</TABLE>
EXAMPLE 2
Same assumptions as Example 1 above, except that you decided not to surrender
your Contract, or you began receiving income payments (for at least 120 months
if under an Income Plan for a specified period), at the end of each period.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SUB-ACCOUNT 1 YEAR 3 YEARS 5 YEARS 10 YEARS
AIM V.I. Aggressive Growth $39 $117 $198 $407
AIM V.I. Balanced $27 $ 84 $143 $303
AIM V.I. Blue Chip $27 $ 84 $142 $302
AIM V.I. Capital Appreciation $21 $ 66 $113 $243
AIM V.I. Capital Development $49 $147 $245 $492
AIM V.I. Dent Demographics Trends $28 $ 87 $148 $313
AIM V.I. Diversified Income $22 $ 69 $118 $254
AIM V.I. Global Growth and Income $28 $ 86 $146 $309
AIM V.I. Global Utilities $26 $ 79 $134 $285
AIM V.I. Government Securities $23 $ 71 $122 $261
AIM V.I. Growth $21 $ 66 $113 $243
AIM V.I. Growth and Income $22 $ 67 $115 $247
AIM V.I. High Yield $28 $ 87 $149 $313
AIM V.I. International Equity $24 $ 73 $126 $268
AIM V.I. Money Market $20 $ 62 $106 $229
AIM V.I. Telecommunications and Technology $27 $ 83 $141 $299
AIM V.I. Value $22 $ 67 $115 $246
</TABLE>
Please remember that you are looking at examples and not a representation of
past or future expenses. Your actual expenses may be lower or greater than those
shown above. Similarly, your rate of return may be lower or greater than 5%,
which is not guaranteed. The above examples assume the election of the Enhanced
Death Benefit Option, with a mortality and expense risk charge of 1.20%. If that
option was not elected, the expense figures shown above would be slightly lower.
To reflect the contract maintenance charge in the examples, we estimated an
equivalent percentage charge, based on an assumed average Contract size of
$50,000.
<PAGE>
FINANCIAL INFORMATION
To measure the value of your investment in the Variable Sub-Accounts during the
Accumulation Phase, we use a unit of measure we call the "Accumulation Unit."
Each Variable Sub-Account has a separate value for its Accumulation Units we
call "Accumulation Unit Value." Accumulation Unit Value is analogous to, but not
the same as, the share price of a mutual fund.
No Accumulation Unit Values are shown for the Contracts, which were first
offered as of January 17, 2000. The financial statements of the Variable Account
and Allstate New York appear in the Statement of Additional Information.
<PAGE>
THE CONTRACT
CONTRACT OWNER
The AIM Lifetime Plus(SM) II Variable Annuity is a contract between you, the
Contract owner, and Allstate New York, a life insurance company. As the Contract
owner, you may exercise all of the rights and privileges provided to you by the
Contract. That means it is up to you to select or change (to the extent
permitted):
o the investment alternatives during the Accumulation and Payout Phases,
o the amount and timing of your purchase payments and withdrawals,
o the programs you want to use to invest or withdraw money,
o the income payment plan you want to use to receive retirement income,
o the Annuitant (either yourself or someone else) on whose life the income
payments will be based,
o the Beneficiary or Beneficiaries who will receive the benefits that the
Contract provides when the last surviving Contract owner dies, and
o any other rights that the Contract provides.
If you die, any surviving Contract owner or, if none, the Beneficiary may
exercise the rights and privileges provided to them by the Contract.
The Contract cannot be jointly owned by both a non-natural person and a natural
person. The maximum issue age of any Contract owner is age 90.
You can use the Contract with or without a qualified plan. A qualified plan is a
personal retirement savings plan, such as an IRA or tax-sheltered annuity, that
meets the requirements of the Internal Revenue Code. Qualified plans may limit
or modify your rights and privileges under the Contract. We use the term
"Qualified Contract" to refer to a Contract issued with a qualified plan. See
"Qualified Plans" on page __.
ANNUITANT
The Annuitant is the individual whose life determines the amount and duration of
income payments (other than under Income Plans with guaranteed payments for a
specified period). You initially designate an Annuitant in your application. If
the Contract owner is a natural person you may change the Annuitant prior to the
Payout Start Date. In our discretion , we may permit you to designate a joint
Annuitant, who is a second person on whose life income payments depend, on the
Payout Start Date. The maximum issue age of any Annuitant is age 80.
If the Annuitant dies prior to the Payout Start Date, the new Annuitant will be:
o the youngest Contract owner, if living, otherwise
o the youngest Beneficiary.
BENEFICIARY
The Beneficiary is the person who may elect to receive the death benefit or
become the new Contract owner if the sole surviving Contract owner dies before
the Payout Start Date. If the sole surviving Contract owner dies after the
Payout Start Date, the Beneficiary will receive any guaranteed income payments
scheduled to continue.
You may name one or more Beneficiaries when you apply for a Contract. You may
change or add Beneficiaries at any time by writing to us, unless you have
designated an irrevocable Beneficiary. We will provide a change of Beneficiary
form to be signed and filed with us. Any change will be effective at the time
you sign the written notice, whether or not the Annuitant is living when we
receive the notice. Until we receive your written notice to change a
Beneficiary, we are entitled to rely on the most recent Beneficiary information
in our files. We will not be liable as to any payment or settlement made prior
to receiving the written notice. Accordingly, if you wish to change your
Beneficiary, you should deliver your written notice to us promptly.
If you do not name a Beneficiary or if the named Beneficiary is no longer living
and there are no other surviving Beneficiaries, the new Beneficiary will be:
o your spouse or, if he or she is no longer alive,
o your surviving children equally, or if you have no surviving
children,
o your estate.
If more than one Beneficiary survives you (or the Annuitant if the Contract
owner is not a natural person), we will divide the death benefit among your
Beneficiaries according to your most recent written instructions. If you have
not given us written instructions, we will pay the death benefit in equal
amounts to the surviving Beneficiaries.
MODIFICATION OF THE CONTRACT
Only an Allstate New York officer may approve a change in or waive any provision
of the Contract. Any change or waiver must be in writing. None of our agents has
the authority to change or waive the provisions of the Contract. We may not
change the terms of the Contract without your consent, except to conform the
Contract to applicable law or changes in the law. If a provision of the Contract
is inconsistent with state law, we will follow state law.
ASSIGNMENT
We will not honor an assignment of an interest in a Contract as collateral or
security for a loan. However, you may assign periodic income payments under the
Contract prior to the Payout Start Date. No Beneficiary may assign benefits
under the Contract until they are due. We will not be bound by any assignment
until the assignor signs it and files it with us. We are not responsible for the
validity of any assignment. Federal law prohibits or restricts the assignment of
benefits under many types of retirement plans and the terms of such plans may
themselves contain restrictions on assignments. An assignment may also result in
taxes or tax penalties. You should consult with an attorney before trying to
assign your Contract.
<PAGE>
PURCHASES
MINIMUM PURCHASE PAYMENTS
Your initial purchase payment must be at least $5,000 ($2,000 for a Qualified
Contract). All subsequent purchase payments must be $500 or more. The maximum
purchase payment is $1,000,000 without prior approval. We reserve the right to
reduce the minimum purchase payment. You may make purchase payments at any time
prior to the Payout Start Date. We reserve the right to reject any application.
AUTOMATIC ADDITIONS PROGRAM
You may make subsequent purchase payments of at least $100 ($500 for allocation
to the Fixed Account Options) by automatically transferring amounts from your
bank account. Please consult with your sales representative for detailed
information.
ALLOCATION OF PURCHASE PAYMENTS
At the time you apply for a Contract, you must decide how to allocate your
purchase payments among the investment alternatives. The allocation you specify
on your application will be effective immediately. All allocations must be in
whole percents that total 100% or in whole dollars. You can change your
allocations by notifying us in writing. We reserve the right to limit the
availability of the investment alternatives.
We will allocate your purchase payments to the investment alternatives according
to your most recent instructions on file with us. Unless you notify us in
writing otherwise, we will allocate subsequent purchase payments according to
the allocation for the previous purchase payment. We will effect any change in
allocation instructions at the time we receive written notice of the change in
good order.
We will credit the initial purchase payment that accompanies your completed
application to your Contract within 2 business days after we receive the payment
at our servicing center. If your application is incomplete, we will ask you to
complete your application within 5 business days. If you do so, we will credit
your initial purchase payment to your Contract within that 5 business day
period. If you do not, we will return your purchase payment at the end of the 5
business day period unless you expressly allow us to hold it until you complete
the application. We will credit subsequent purchase payments to the Contract at
the close of the business day on which we receive the purchase payment at our
service center located in Northbrook, Illinois (mailing address: P.O. Box 94038,
Palatine, Illinois, 60094-4038; overnight mail: 3100 Sanders Road, Suite J4A,
Northbrook, Illinois, 60062).
We are open for business each day Monday through Friday that the New York Stock
Exchange is open for business. We also refer to these days as "Valuation Dates."
Our business day closes when the New York Stock Exchange closes, usually 4:00
p.m. Eastern Time (3:00 p.m. Central Time). If we receive your purchase payment
after 4:00 p.m. Eastern Time (3:00 p.m. Central Time) on any Valuation Date, we
will credit your purchase payment using the Accumulation Unit Values computed on
the next Valuation Date.
RIGHT TO CANCEL
You may cancel the Contract by returning it to us within the Cancellation
Period, which is the 10 day period after you receive the Contract (60 days if
you are exchanging another contract for the Contract described in this
prospectus). You may return it by delivering it or mailing it to us. If you
exercise this "Right to Cancel," the Contract terminates and we will pay you the
full amount of your purchase payments allocated to the Fixed Account Options.
Upon cancellation, as permitted by federal or state law, we will return your
purchase payments allocated to the Variable Account after an adjustment to
reflect investment gain or loss that occurred from the date of allocation
through the date of cancellation. If your Contract is qualified under Section
408 of the Internal Revenue Code, we will refund the greater of any purchase
payments or the Contract Value.
<PAGE>
CONTRACT VALUE
On the issue date, the Contract Value is equal to the initial purchase payment.
Thereafter, your Contract Value at any time during the Accumulation Phase is
equal to the sum of the value of your Accumulation Units in the Variable
Sub-Accounts you have selected, plus the value of your interest in the Fixed
Account Options.
ACCUMULATION UNITS
To determine the number of Accumulation Units of each Variable Sub-Account to
allocate to your Contract, we divide (i) the amount of the purchase payment or
transfer you have allocated to a Variable Sub-Account by (ii) the Accumulation
Unit Value of that Variable Sub-Account next computed after we receive your
payment or transfer. For example, if we receive a $10,000 purchase payment
allocated to a Variable Sub-Account when the Accumulation Unit Value for the
Sub-Account is $10, we would credit 1,000 Accumulation Units of that Variable
Sub-Account to your Contract. Withdrawals and transfers from a Variable
Sub-Account would, of course, reduce the number of Accumulation Units of that
Sub-Account allocated to your Contract.
ACCUMULATION UNIT VALUE
As a general matter, the Accumulation Unit Value for each Variable Sub-Account
will rise or fall to reflect:
o changes in the share price of the Fund in which the Variable Sub-Account
invests, and
o the deduction of amounts reflecting the mortality and expense risk charge,
administrative expense charge, and any provision for taxes that have accrued
since we last calculated the Accumulation Unit Value.
We determine contract maintenance charges, withdrawal charges, and transfer fees
(currently waived) separately for each Contract. They do not affect Accumulation
Unit Value. Instead, we obtain payment of those charges and fees by redeeming
Accumulation Units. For details on how we calculate Accumulation Unit Value,
please refer to the Statement of Additional Information.
We determine a separate Accumulation Unit Value for each Variable Sub-Account on
each Valuation Date. We also determine a separate set of Accumulation Unit
Values reflecting the cost of the Enhanced Death Benefit Option described on
page __ below.
You should refer to the prospectus for the Funds that accompanies this
prospectus for a description of how the assets of each Fund are valued, since
that determination directly bears on the Accumulation Unit Value of the
corresponding Variable Sub-Account and, therefore, your Contract Value.
<PAGE>
INVESTMENT ALTERNATIVES: The Variable Sub-Accounts
You may allocate your purchase payments to up to 17 Variable Sub-Accounts. Each
Variable Sub-Account invests in the shares of a corresponding Fund. Each Fund
has its own investment objective(s) and policies. We briefly describe the Funds
below.
For more complete information about each Fund, including expenses and risks
associated with the Fund, please refer to the accompanying prospectus for the
Fund. You should carefully review the Fund prospectuses before allocating
amounts to the Variable Sub-Accounts. A I M Advisors, Inc. serves as the
investment advisor to each Fund.
<TABLE>
<CAPTION>
<S> <C>
Fund: Each Fund Seeks:*
AIM V.I. Aggressive Growth Fund** Long-term growth of capital
AIM V.I. Balanced Fund As high a total return as possible, consistent with preservation of
capital
AIM V.I. Blue Chip Fund Long-term growth of capital with a secondary objective of current income
AIM V.I. Capital Appreciation Fund Growth of capital
AIM V.I. Capital Development Fund Long-term growth of capital
AIM V.I. Dent Demographics Trends Fund Long-term growth of capital
AIM V.I. Diversified Income Fund High level of current income
AIM V.I. Global Growth and Income Fund Long-term growth of capital together with current income
AIM V.I. Global Utilities Fund High total return
AIM V.I. Government Securities Fund High level of current income consistent with reasonable concern for
safety of principal
AIM V.I. Growth Fund Growth of capital
AIM V.I. Growth and Income Fund Growth of capital with a secondary objective of current income
AIM V.I. High Yield Fund High level of current income
AIM V.I. International Equity Fund Long-term growth of capital
AIM V.I. Money Market Fund As high a level of current income as is consistent with the preservation
of capital and liquidity
AIM V.I. Telecommunications and Long-term growth of capital
Technology Fund
AIM V.I. Value Fund Long-term growth of capital with income as a secondary objective
</TABLE>
* A Fund's investment objectives may be changed by the Fund's Board of
Trustees without shareholder approval.
** Due to the sometime limited availability of common stocks of small-cap
companies that meet the investment criteria for AIM V.I. Aggressive Growth
Fund, the Fund may periodically suspend or limit the offering of its
shares. The Fund will be closed to new participants when Fund assets reach
$200 million. If the Fund is closed, Contract owners maintaining an
allocation of Contract Value in that Fund will nevertheless be permitted to
allocate additional purchase payments to the Fund.
Amounts you allocate to Variable Sub-Accounts may grow in value, decline in
value, or grow less than you expect, depending on the investment performance of
the Funds in which those Variable Sub-Accounts invest. You bear the investment
risk that the Funds might not meet their investment objectives. Shares of the
Funds are not deposits, or obligations of, or guaranteed or endorsed by any bank
and are not insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other agency.
<PAGE>
INVESTMENT ALTERNATIVES : The Fixed Account Options
You may allocate all or a portion of your purchase payments to the Fixed
Account. You may choose from among 2 Fixed Account Options, including a Dollar
Cost Averaging Fixed Account Option ("Dollar Cost Averaging Option"), and the
option to invest in one or more Guarantee Periods. The Fixed Account Options may
not be available in all states. Please consult with your sales representative
for current information. The Fixed Account supports our insurance and annuity
obligations. The Fixed Account consists of our general assets other than those
in segregated asset accounts. We have sole discretion to invest the assets of
the Fixed Account, subject to applicable law. Any money you allocate to a Fixed
Account Option does not entitle you to share in the investment experience of the
Fixed Account.
DOLLAR COST AVERAGING OPTION
You may establish a Dollar Cost Averaging Program, as described on page __, by
allocating purchase payments to the Dollar Cost Averaging Option. Purchase
payments that you allocate to the Dollar Cost Averaging Option will earn
interest for up to a 1 year period at the current rate in effect at the time of
allocation. We will credit interest daily at a rate that will compound over the
year to the annual interest rate we guaranteed at the time of allocation. You
may transfer each purchase payment and associated interest out of the Dollar
Cost Averaging Option to the other investment alternatives in up to twelve equal
monthly installments. At the end of 12 months from the date of a purchase
payment allocation to the Dollar Cost Averaging Account, any remaining portion
of the purchase payment and interest in the Dollar Cost Averaging Account will
be allocated to other investment alternatives as defined by the current Dollar
Cost Averaging Account allocation. You may not transfer funds from other
investment alternatives to the Dollar Cost Averaging Option.
The interest rates we credit for the Dollar Cost Averaging Option will never be
less than 3% annually.
Transfers out of the Dollar Cost Averaging Option do not count towards the 12
transfers you can make without paying a transfer fee.
We may declare different interest rates for different amounts allocated to the
Dollar Cost Averaging Option depending on when they were allocated. For current
interest rate information, please contact your Financial Advisor or our Customer
Service unit at 1-800-692-4682.
GUARANTEE PERIODS
Each payment or transfer allocated to a Guarantee Period earns interest at a
specified rate that we guarantee for a period of years. Guarantee Periods may
range from 1 to 10 years. We are currently offering Guarantee Periods of 1, 3,
5, 7, and 10 years in length. In the future we may offer Guarantee Periods of
different lengths or stop offering some Guarantee Periods. You select one or
more Guarantee Periods for each purchase payment or transfer. If you do not
select the Guarantee Period for a purchase payment or transfer, we will assign
the shortest Guarantee Period available under the Contract for such payment or
transfer.
We reserve the right to limit the number of additional purchase payments that
you may allocate to this Option. Please consult with your sales representative
for more information.
Interest Rates
We will tell you what interest rates and Guarantee Periods we are offering at a
particular time. We may declare different interest rates for Guarantee Periods
of the same length that begin at different times. We will not change the
interest rate that we credit to a particular allocation until the end of the
relevant Guarantee Period.
We have no specific formula for determining the rate of interest that we will
declare initially or in the future. We will set those interest rates based on
investment returns available at the time of the determination. In addition, we
may consider various other factors in determining interest rates including
regulatory and tax requirements, our sales commission and administrative
expenses, general economic trends, and competitive factors. We determine the
interest rates to be declared in our sole discretion. We can neither predict nor
guarantee what those rates will be in the future. For current interest rate
information, please contact your sales representative or Allstate New York at
1-800-692-4682. The interest rate will never be less than the minimum guaranteed
amount stated in the Contract.
How We Credit Interest
We will credit interest daily to each amount allocated to a Guarantee Period at
a rate that compounds to the effective annual interest rate that we declared at
the beginning of the applicable Guarantee Period. The following example
illustrates how a purchase payment allocated to a Guarantee Period would grow,
given an assumed Guarantee Period and effective annual interest rate:
Purchase Payment..................................$10,000
Guarantee Period 5 years
Annual Interest Rate............................... 4.50%
<TABLE>
<CAPTION>
END OF CONTRACT YEAR
<S> <C> <C> <C> <C> <C>
YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5
------ ------ ------ ------ ------
Beginning Contract Value $10,000.00
X (1 + Annual Interest Rate) X 1.045
$10,450.00
Contract Value at end of Contract Year $10,450.00
X (1 + Annual Interest Rate) X 1.045
$10,920.25
Contract Value at end of Contract Year $10,920.25
X (1 + Annual Interest Rate) X 1.045
$11,411.66
Contract Value at end of Contract Year $11,411.66
X (1 + Annual Interest Rate) X 1.045
$11,925.19
Contract Value at end of Contract Year $11,925.19
X (1 + Annual Interest Rate) X 1.045
$12,461.82
Total Interest Credited During Guarantee Period = $2,461.82 ($12,461.82 -$10,000)
</TABLE>
This example assumes no withdrawals during the entire 5 year Guarantee Period.
If you were to make a withdrawal, you may be required to pay a withdrawal
charge. In addition, the amount withdrawn may be increased or decreased by a
Market Value Adjustment that reflects changes in interest rates since the time
you invested the amount withdrawn. The hypothetical interest rate is for
illustrative purposes only and is not intended to predict future interest rates
to be declared under the Contract. Actual interest rates declared for any given
Guarantee Period may be more or less than shown above but will never be less
than the guaranteed minimum rate stated in the Contract.
Renewals
At least 15 but not more than 45 days prior to the end of each Guarantee Period,
we will mail you a notice asking you what to do with your money, including the
accrued interest. During the 30-day period after the end of the Guarantee
Period, you may:
1) take no action. We will automatically apply your money to a new Guarantee
Period of the shortest duration available. The new Guarantee Period will
begin on the day the previous Guarantee Period ends. The new interest rate
will be our then current declared rate for a Guarantee Period of that
length; or
2) instruct us to apply your money to one or more new Guarantee Periods of
your choice. The new Guarantee Period(s) will begin on the day the previous
Guarantee Period ends. The new interest rate will be our then current
declared rate for those Guarantee Periods; or
3) instruct us to transfer all or a portion of your money to one or more
Variable Sub-Accounts. We will effect the transfer on the day we receive
your instructions. We will not adjust the amount transferred to include a
Market Value Adjustment; or
4) withdraw all or a portion of your money. You may be required to pay a
withdrawal charge, but we will not adjust the amount withdrawn to include a
Market Value Adjustment. You may also be required to pay premium taxes and
withholding (if applicable). The amount withdrawn will be deemed to have
been withdrawn on the day the previous Guarantee Period ends. Unless you
specify otherwise, amounts not withdrawn will be applied to a new Guarantee
Period of the shortest duration available. The new Guarantee Period will
begin on the day the previous Guarantee Period ends.
Under our automatic laddering program ("Automatic Laddering Program"), you may
choose, in advance, to use Guarantee Periods of the same length for all
renewals. You can select this Program at any time during the Accumulation Phase,
including on the Issue Date. We will apply renewals to Guarantee Periods of the
selected length until you direct us in writing to stop. We may stop offering
this Program at any time. For additional information on the Automatic Laddering
Program, please call our Customer Service unit at 1-800-692-4682.
Market Value Adjustment
All withdrawals in excess of the Preferred Withdrawal Amount, transfers, and
amounts applied to an Income Plan from a Guarantee Period, other than those
taken during the 30 day period after such Guarantee Period expires, are subject
to a Market Value Adjustment. A positive Market Value Adjustment also may apply
upon payment of a death benefit from amounts currently invested in a Guarantee
Period (unless paid or applied during the 30 day period after such Guarantee
Period expires). We will not apply a Market Value Adjustment to a transfer you
make as part of a Dollar Cost Averaging Program. We also will not apply a Market
Value Adjustment to a withdrawal you make:
o within the Preferred Withdrawal Amount as described on page __, or
o to satisfy the IRS minimum distribution rules for the Contract.
We apply the Market Value Adjustment to reflect changes in interest rates from
the time you first allocate money to a Guarantee Period to the time it is
removed from that Guarantee Period. We calculate the Market Value Adjustment by
comparing the Treasury Rate for a period equal to the Guarantee Period at its
inception to the Treasury Rate for a period equal to the time remaining in the
Guarantee Period when you remove your money. "Treasury Rate" means the U.S.
Treasury Note Constant Maturity Yield as reported in Federal Reserve Bulletin
Release H.15.
The Market Value Adjustment may be positive or negative, depending on changes in
interest rates. As such, you bear the investment risk associated with changes in
interest rates. If interest rates increase significantly, the Market Value
Adjustment and any withdrawal charge, premium taxes, and income tax withholding
(if applicable) could reduce the amount you receive upon full withdrawal of your
Contract Value to an amount that is less than the purchase payment plus interest
at the minimum guaranteed interest rate under the Contract. Death benefits will
not be subject to a negative Market Value Adjustment.
Generally, if the Treasury Rate at the time you allocate money to a Guarantee
Period is higher than the applicable current Treasury Rate for a period equal to
the time remaining in the Guarantee Period, then the Market Value Adjustment
will result in a higher amount payable to you or transferred. Conversely, if the
Treasury Rate at the time you allocate money to a Guarantee Period is lower than
the applicable Treasury Rate for a period equal to the time remaining in the
Guarantee Period, then the Market Value Adjustment will result in a lower amount
payable to you or transferred.
For example, assume that you purchase a Contract and you select an
initial Guarantee Period of 5 years and the 5 year Treasury Rate for
that duration is 4.50%. Assume that at the end of 3 years, you make a
partial withdrawal. If, at that later time, the current 2 year Treasury
Rate is 4.20%, then the Market Value Adjustment will be positive, which
will result in an increase in the amount payable to you. Conversely, if
the current 2 year Treasury Rate is 4.80%, then the Market Value
Adjustment will be negative, which will result in a decrease in the
amount payable to you.
The formula for calculating Market Value Adjustments is set forth in Appendix A
to this prospectus, which also contains additional examples of the application
of the Market Value Adjustment.
<PAGE>
INVESTMENT ALTERNATIVES: Transfers
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase, you may transfer Contract Value among the
investment alternatives. You may not transfer Contract Value into the Dollar
Cost Averaging Option. You may request transfers in writing on a form that we
provided or by telephone according to the procedure described below. We
currently do not assess, but reserve the right to assess, a $10 charge on each
transfer in excess of 12 per Contract Year. We treat transfers to or from more
than one Fund on the same day as one transfer. Transfers you make as part of a
Dollar Cost Averaging Program or Automatic Fund Rebalancing Program do not count
against the 12 free transfers per Contract Year.
We will process transfer requests that we receive before 4:00 p.m. Eastern Time
(3:00 p.m. Central Time) on any Valuation Date using the Accumulation Unit
Values for that Date. We will process requests completed after 4:00 p.m. Eastern
Time on any Valuation Date using the Accumulation Unit Values for the next
Valuation Date. The Contract permits us to defer transfers from the Fixed
Account for up to 6 months from the date we receive your request. If we decide
to postpone transfers from the Fixed Account Options for 10 days or more, we
will pay interest as required by applicable law. Any interest would be payable
from the date we receive the transfer request to the date we make the transfer.
If you transfer an amount from a Guarantee Period other than during the 30 day
period after such Guarantee Period expires, we will increase or decrease the
amount by a Market Value Adjustment.
We reserve the right to waive any transfer restrictions.
TRANSFERS DURING THE PAYOUT PHASE
During the Payout Phase, you may make transfers among the Variable Sub-Accounts
to change the relative weighting of the Variable Sub-Accounts on which your
variable income payments will be based. In addition, you will have a limited
ability to make transfers from the Variable Sub-Accounts to increase the
proportion of your income payments consisting of fixed income payments. You may
not, however, convert any portion of your right to receive fixed income payments
into variable income payments.
You may not make any transfers for the first 6 months after the Payout Start
Date. Thereafter, you may make transfers among the Variable Sub-Accounts or make
transfers from the Variable Sub-Accounts to increase the proportion of your
income payments consisting of fixed income payments. Your transfers must be at
least 6 months apart.
TELEPHONE TRANSFERS
You may make transfers by telephone by calling 1-800-692-4682, if you first send
us a completed authorization form. The cut off time for telephone transfer
requests is 4:00 p.m. Eastern Time (3:00 p.m. Central Time). In the event that
the New York Stock Exchange closes early, i.e., before 4:00 p.m. Eastern Time,
or in the event that the Exchange closes early for a period of time but then
reopens for trading on the same day, we will process telephone transfer requests
as of the close of the Exchange on that particular day. We will not accept
telephone requests received at any telephone number other than the number that
appears in this paragraph or received after the close of trading on the
Exchange.
We may suspend, modify or terminate the telephone transfer privilege at any time
without notice.
We use procedures that we believe provide reasonable assurance that the
telephone transfers are genuine. For example, we tape telephone conversations
with persons purporting to authorize transfers and request identifying
information. Accordingly, we disclaim any liability for losses resulting from
allegedly unauthorized telephone transfers. However, if we do not take
reasonable steps to help ensure that a telephone authorization is valid, we may
be liable for such losses.
DOLLAR COST AVERAGING PROGRAM
Through the Dollar Cost Averaging Program, you may automatically transfer a set
amount at regular intervals during the Accumulation Phase from any Variable
Sub-Account, the Dollar Cost Averaging Option, or the 3, 5, 7 or 10 year
Guarantee Periods, to any Variable Sub-Account. The interval between transfers
may be monthly, quarterly, semi-annually, or annually. Transfers made through
dollar cost averaging must be $50 or more. You may not use dollar cost averaging
to transfer amounts into the Dollar Cost Averaging Option.
We will not charge a transfer fee for transfers made under this Program, nor
will such transfers count against the 12 transfers you can make each Contract
Year without paying a transfer fee. In addition, we will not apply the Market
Value Adjustment to these transfers.
The theory of dollar cost averaging is that if purchases of equal dollar amounts
are made at fluctuating prices, the aggregate average cost per unit will be less
than the average of the unit prices on the same purchase dates. However,
participation in this program does not assure you of a greater profit from your
purchases under the Program nor will it prevent or necessarily reduce losses in
a declining market.
Call or write us for instructions on how to enroll.
AUTOMATIC FUND REBALANCING PROGRAM
Once you have allocated your money among the Variable Sub-Accounts, the
performance of each Sub-Account may cause a shift in the percentage you
allocated to each Sub-Account. If you select our Automatic Fund Rebalancing
Program, we will automatically rebalance the Contract Value in each Variable
Sub-Account and return it to the desired percentage allocations. Money you
allocate to the Fixed Account Options will not be included in the rebalancing.
<PAGE>
We will rebalance your account each quarter according to your instructions. We
will transfer amounts among the Variable Sub-Accounts to achieve the percentage
allocations you specify. You can change your allocations at any time by
contacting us in writing or by telephone. The new allocation will be effective
with the first rebalancing that occurs after we receive your request. We are not
responsible for rebalancing that occurs prior to receipt of your request.
Example:
Assume that you want your initial purchase payment split among 2
Variable Sub-Accounts. You want 40% to be in the AIM V.I. Diversified
Income Variable Sub-Account and 60% to be in the AIM V.I. Growth
Variable Sub-Account. Over the next 2 months the bond market does very
well while the stock market performs poorly. At the end of the first
quarter, the AIM V.I. Diversified Income Variable Sub-Account now
represents 50% of your holdings because of its increase in value. If
you choose to have your holdings rebalanced quarterly, on the first
day of the next quarter we would sell some of your units in the AIM
V.I. Diversified Income Variable Sub-Account and use the money to buy
more units in the AIM V.I. Growth Variable Sub-Account so that the
percentage allocations would again be 40% and 60% respectively.
The Automatic Fund Rebalancing Program is available only during the Accumulation
Phase. The transfers made under the Program do not count towards the 12
transfers you can make without paying a transfer fee, and are not subject to a
transfer fee.
Fund rebalancing is consistent with maintaining your allocation of investments
among market segments, although it is accomplished by reducing your Contract
Value allocated to the better performing segments.
<PAGE>
EXPENSES
As a Contract owner, you will bear, directly or indirectly, the charges and
expenses described below.
CONTRACT MAINTENANCE CHARGE
During the Accumulation Phase, on each Contract Anniversary, we will deduct a
$35 contract maintenance charge from your Contract Value invested in each
Variable Sub-Account in proportion to the amount invested. We also will deduct a
full contract maintenance charge if you withdraw your entire Contract Value,
unless your Contract qualifies for a waiver, described below. During the Payout
Phase, we will deduct the charge proportionately from each income payment.
The charge is for the cost of maintaining each Contract and the Variable
Account. Maintenance costs include expenses we incur in billing and collecting
purchase payments; keeping records; processing death claims, cash withdrawals,
and policy changes; proxy statements; calculating Accumulation Unit Values and
income payments; and issuing reports to Contract owners and regulatory agencies.
We cannot increase the charge. We will waive this charge if:
o total purchase payments equal $50,000 or more, or
o all money is allocated to the Fixed Account Options, as of the Contract
Anniversary.
After the Payout Start Date, we will waive this charge if:
o as of the Payout Start Date, total purchase payments are $50,000 or more, or
o all income payments are fixed amount income payments.
MORTALITY AND EXPENSE RISK CHARGE
We deduct a mortality and expense risk charge daily at an annual rate of 1.00%
of the average daily net assets you have invested in the Variable Sub-Accounts
(1.20% if you select the Enhanced Death Benefit Option). The mortality and
expense risk charge is for all the insurance benefits available with your
Contract (including our guarantee of annuity rates and the death benefits), for
certain expenses of the Contract, and for assuming the risk (expense risk) that
the current charges will be sufficient in the future to cover the cost of
administering the Contract. If the charges under the Contract are not
sufficient, then we will bear the loss. We charge an additional .20% for the
Enhanced Death Benefit Option to compensate us for the additional risk that we
accept by providing the rider.
We guarantee the mortality and expense risk charge and we cannot increase it. We
assess the mortality and expense risk charge during both the Accumulation Phase
and the Payout Phase.
ADMINISTRATIVE EXPENSE CHARGE
We deduct an administrative expense charge daily at an annual rate of 0.10% of
the average daily net assets you have invested in the Variable Sub-Accounts. We
intend this charge to cover actual administrative expenses that exceed the
revenues from the contract maintenance charge. There is no necessary
relationship between the amount of administrative charge imposed on a given
Contract and the amount of expenses that may be attributed to that Contract. We
assess this charge each day during the Accumulation Phase and the Payout Phase.
We guarantee that we will not raise this charge.
TRANSFER FEE
We do not currently impose a fee upon transfers among the investment
alternatives. However, we reserve the right to charge $10 per transfer after the
12th transfer in each Contract Year. We will not charge a transfer fee on
transfers that are part of a Dollar Cost Averaging or Automatic Fund Rebalancing
Program.
WITHDRAWAL CHARGE
We may assess a withdrawal charge of up to 7% of the purchase payment(s) you
withdraw in excess of the Preferred Withdrawal Amount, adjusted by a Market
Value Adjustment. The charge declines annually to 0% after 7 complete years from
the day we receive the purchase payment being withdrawn. A schedule showing how
the charge declines appears on page __. During each Contract Year, you can
withdraw up to 15% of the Contract Value as of the beginning of that Contract
Year without paying the charge. Unused portions of this 15% "Preferred
Withdrawal Amount" are not carried forward to future Contract Years.
We determine the withdrawal charge by:
o multiplying the percentage corresponding to the number of complete years
since we received the purchase payment being withdrawn, times
o the part of each purchase payment withdrawal that is in excess of the
Preferred Withdrawal Amount, adjusted by a Market Value Adjustment.
We will deduct withdrawal charges, if applicable, from the amount paid. For
purposes of the withdrawal charge, we will treat withdrawals as coming from the
oldest purchase payments first. However, for federal income tax purposes, please
note that withdrawals are considered to have come first from earnings in the
Contract. Thus, for tax purposes, earnings are considered to come out first,
which means you pay taxes on the earnings portion of your withdrawal.
We do not apply a withdrawal charge in the following situations:
o on the Payout Start Date (a withdrawal charge may apply if you elect to
receive income payments for a specified period of less than 120 months);
o the death of the Contract owner or Annuitant (unless the Settlement Value
is used);
o withdrawals taken to satisfy IRS minimum distribution rules for the
Contract; and
o withdrawals made after all purchase payments have been withdrawn.
We use the amounts obtained from the withdrawal charge to pay sales commissions
and other promotional or distribution expenses associated with marketing the
Contracts. To the extent that the withdrawal charge does not cover all sales
commissions and other promotional or distribution expenses, we may use any of
our corporate assets, including potential profit which may arise from the
mortality and expense risk charge or any other charges or fee described above,
to make up any difference.
Withdrawals may be subject to tax penalties or income tax and a Market Value
Adjustment. You should consult your own tax counsel or other tax advisers
regarding any withdrawals.
PREMIUM TAXES
Currently, we do not make deductions for premium taxes under the Contract
because New York does not charge premium taxes on annuities. We may deduct taxes
that may be imposed in the future from purchase payments or the Contract Value
when the tax is incurred or at a later time.
DEDUCTION FOR VARIABLE ACCOUNT INCOME TAXES
We are not currently making a provision for taxes. In the future, however, we
may make a provision for taxes if we determine, in our sole discretion, that we
will incur a tax as a result of the operation of the Variable Account. We will
deduct for any taxes we incur as a result of the operation of the Variable
Account, whether or not we previously made a provision for taxes and whether or
not it was sufficient. Our status under the Internal Revenue Code is briefly
described in the Statement of Additional Information.
OTHER EXPENSES
Each Fund deducts advisory fees and other expenses from its assets. You
indirectly bear the charges and expenses of the Funds whose shares are held by
the Variable Sub-Accounts. These fees and expenses are described in the
accompanying prospectus for the Funds. For a summary of these charges and
expenses, see pages ___ above. We may receive compensation from A I M Advisors,
Inc., for administrative services we provide to the Funds.
<PAGE>
ACCESS TO YOUR MONEY
You can withdraw some or all of your Contract Value at any time prior to the
Payout Start Date. Withdrawals also are available under limited circumstances on
or after the Payout Start Date. See "Income Plans" on page __.
The amount payable upon withdrawal is the Contract Value next computed after we
receive the request for a withdrawal at our service center, adjusted by any
Market Value Adjustment, less any withdrawal charges, contract maintenance
charges, income tax withholding, penalty tax, and any premium taxes. We will pay
withdrawals from the Variable Account within 7 days of receipt of the request,
subject to postponement in certain circumstances.
You can withdraw money from the Variable Account or the Fixed Account Options.
To complete a partial withdrawal from the Variable Account, we will cancel
Accumulation Units in an amount equal to the withdrawal and any applicable
withdrawal charge and premium taxes.
You must name the investment alternative from which you are taking the
withdrawal. If none is named, then the withdrawal request is incomplete and
cannot be honored.
In general, you must withdraw at least $50 at a time. You also may withdraw a
lesser amount if you are withdrawing your entire interest in a Variable
Sub-Account.
If you request a total withdrawal, we may require that you return your Contract
to us.
POSTPONEMENT OF PAYMENTS
We may postpone the payment of any amounts due from the Variable Account under
the Contract if:
1) The New York Stock Exchange is closed for other than usual weekends or
holidays, or trading on the Exchange is otherwise restricted;
2) An emergency exists as defined by the SEC; or
3) The SEC permits delay for your protection.
In addition, we may delay payments or transfers from the Fixed Account Options
for up to 6 months or shorter period if required by law. If we delay payment or
transfer for 10 days or more, we will pay interest as required by law. Any
interest would be payable from the date we receive the withdrawal request to the
date we make the payment or transfer.
SYSTEMATIC WITHDRAWAL PROGRAM
You may choose to receive systematic withdrawal payments on a monthly,
quarterly, semi-annual, or annual basis at any time prior to the Payout Start
Date. The minimum amount of each systematic withdrawal is $50. Systematic
Withdrawals are not available from the Dollar Cost Averaging Option. At our
discretion, systematic withdrawals may not be offered in conjunction with the
Dollar Cost Averaging Program or the Automatic Fund Rebalancing Program.
Depending on fluctuations in the net asset value of the Variable Sub-Accounts
and the value of the Fixed Account Options, systematic withdrawals may reduce or
even exhaust the Contract Value. Income taxes may apply to systematic
withdrawals. Please consult your tax advisor before taking any withdrawal.
We will make systematic withdrawal payments to you or your designated payee. We
may modify or suspend the Systematic Withdrawal Program and charge a processing
fee for the service. If we modify or suspend the Systematic Withdrawal Program,
existing systematic withdrawal payments will not be affected.
MINIMUM CONTRACT VALUE
If your request for a partial withdrawal would reduce the amount in any
Guarantee Period to less than $500, we will treat it as a request to withdraw
the entire amount invested in such Guarantee Period. If your request for a
partial withdrawal would reduce the Contract Value to less than $1,000, we may
treat it as a request to withdraw your entire Contract Value. Your Contract will
terminate if you withdraw all of your Contract Value. We will, however, ask you
to confirm your withdrawal request before terminating your Contract. If we
terminate your Contract, we will distribute to you its Contract Value, adjusted
by any applicable Market Value Adjustment, less withdrawal and other charges,
and applicable taxes.
<PAGE>
INCOME PAYMENTS
PAYOUT START DATE
The Payout Start Date is the day that we apply your money to an Income Plan. The
Payout Start Date must be no later than the Annuitant's 90th birthday.
You may change the Payout Start Date at any time by notifying us in writing of
the change at least 30 days before the scheduled Payout Start Date. Absent a
change, we will use the Payout Start Date stated in your Contract.
INCOME PLANS
An "Income Plan" is a series of payments on a scheduled basis to you or to
another person designated by you. You may choose and change your choice of
Income Plan until 30 days before the Payout Start Date. If you do not select an
Income Plan, we will make income payments in accordance with Income Plan 1 with
guaranteed payments for 10 years. After the Payout Start Date, you may not make
withdrawals (except as described below) or change your choice of Income Plan.
Three Income Plans are available under the Contract. Each is available to
provide:
o fixed income payments;
o variable income payments; or
o a combination of the two.
The three Income Plans are:
Income Plan 1 - Life Income with Guaranteed Payments. Under this plan, we
make periodic income payments for at least as long as the Annuitant lives.
If the Annuitant dies before we have made all of the guaranteed income
payments, we will continue to pay the remainder of the guaranteed income
payments as required by the Contract.
Income Plan 2 - Joint and Survivor Life Income with Guaranteed Payments.
Under this plan, we make periodic income payments for at least as long as
either the Annuitant or the joint Annuitant is alive. If both the Annuitant
and the joint Annuitant die before we have made all of the guaranteed
income payments, we will continue to pay the remainder of the guaranteed
income payments as required by the Contract.
Income Plan 3 - Guaranteed Payments for a Specified Period (5 Years to 30
Years). Under this plan, we make periodic income payments for the period
you have chosen. These payments do not depend on the Annuitant's life.
Income payments for less than 120 months may be subject to a withdrawal
charge. We will deduct the mortality and expense risk charge from the
Variable Sub-account assets that support variable income payments even
though we may not bear any mortality risk.
The length of any guaranteed payment period under your selected Income Plan
generally will affect the dollar amounts of each income payment. As a general
rule, longer guarantee periods result in lower income payments, all other things
being equal. For example, if you choose an Income Plan with payments that depend
on the life of the Annuitant but with no minimum specified period for guaranteed
payments, the income payments generally will be greater than the income payments
made under the same Income Plan with a minimum specified period for guaranteed
payments.
If you choose Income Plan 1 or 2, or, if available, another Income Plan with
payments that continue for the life of the Annuitant or joint Annuitant, we may
require proof of age and sex of the Annuitant or joint Annuitant before starting
income payments, and proof that the Annuitant or joint Annuitant is alive before
we make each payment. Please note that under such Income Plans, if you elect to
take no minimum guaranteed payments, it is possible that the payee could receive
only 1 income payment if the Annuitant and any joint Annuitant both die before
the second income payment, or only 2 income payments if they die before the
third income payment, and so on.
Generally, you may not make withdrawals after the Payout Start Date. One
exception to this rule applies if you are receiving variable income payments
that do not depend on the life of the Annuitant (such as under Income Plan 3).
In that case you may terminate all or part of the Variable Account portion of
the income payments at any time and receive a lump sum equal to the present
value of the remaining variable payments associated with the amount withdrawn.
The minimum amount you may withdraw under this feature is $1,000. A withdrawal
charge may apply. We deduct applicable premium taxes from the Contract Value at
the Payout Start Date.
We may make other Income Plans available. You may obtain information about them
by writing or calling us.
You must apply at least the Contract Value in the Fixed Account Options on the
Payout Start Date to fixed income payments. If you wish to apply any portion of
your Fixed Account Option balance to provide variable income payments, you
should plan ahead and transfer that amount to the Variable Sub-Accounts prior to
the Payout Start Date. If you do not tell us how to allocate your Contract Value
among fixed and variable income payments, we will apply your Contract Value in
the Variable Account to variable income payments and your Contract Value in the
Fixed Account Options to fixed income payments.
We will apply your Contract Value, adjusted by a Market Value Adjustment, less
applicable taxes to your Income Plan on the Payout Start Date. If the Contract
owner has not made any purchase payments for at least 3 years preceding the
Payout Start Date, and either the Contract Value is less than $2,000 or not
enough to provide an initial payment of at least $20, and state law permits, we
may:
o terminate the Contract and pay you the Contract Value, adjusted by any
Market Value Adjustment and less any applicable taxes, in a lump sum
instead of the periodic payments you have chosen, or
o reduce the frequency of your payments so that each payment will be at least
$20.
VARIABLE INCOME PAYMENTS
The amount of your variable income payments depends upon the investment results
of the Variable Sub-Accounts you select, the premium taxes you pay, the age and
sex of the Annuitant, and the Income Plan you choose. We guarantee that the
payments will not be affected by (a) actual mortality experience and (b) the
amount of our administration expenses.
We cannot predict the total amount of your variable income payments. Your
variable income payments may be more or less than your total purchase payments
because (a) variable income payments vary with the investment results of the
underlying Funds and (b) the Annuitant could live longer or shorter than we
expect based on the tables we use.
In calculating the amount of the periodic payments in the annuity tables in the
Contract, we assumed an annual investment rate of 3%. If the actual net
investment return of the Variable Sub-Accounts you choose is less than this
assumed investment rate, then the dollar amount of your variable income payments
will decrease. The dollar amount of your variable income payments will increase,
however, if the actual net investment return exceeds the assumed investment
rate. The dollar amount of the variable income payments stays level if the net
investment return equals the assumed investment rate. Please refer to the
Statement of Additional Information for more detailed information as to how we
determine variable income payments.
FIXED INCOME PAYMENTS
We guarantee income payment amounts derived from any Fixed Account Option for
the duration of the Income Plan. We calculate the fixed income payments by:
1) adjusting the portion of the Contract Value in any Fixed Account
Option on the Payout Start Date by any applicable Market Value
Adjustment;
2) deducting any applicable premium tax; and
3) applying the resulting amount to the greater of (a) the appropriate
value from the income payment table in your Contract or (b) such other
value as we are offering at that time.
We may defer making fixed income payments for a period of up to 6 months or such
shorter time as state law may require. If we defer payments for 10 business days
or more, we will pay interest as required by law from the date we receive the
withdrawal request to the date we make payment.
CERTAIN EMPLOYEE BENEFIT PLANS
The Contracts offered by this prospectus contain income payment tables that
provide for different payments to men and women of the same age. However, we
reserve the right to use income payment tables that do not distinguish on the
basis of sex to the extent permitted by law. In certain employment-related
situations, employers are required by law to use the same income payment tables
for men and women. Accordingly, if the Contract is to be used in connection with
an employment-related retirement or benefit plan, you should consult with legal
counsel as to whether the purchase of a Contract is appropriate. For qualified
plans, where it is appropriate, we may use income payment tables that do not
distinguish on the basis of sex.
<PAGE>
DEATH BENEFITS
We will pay a death benefit if, prior to the Payout Start Date:
1) any Contract owner dies or,
2) the Annuitant dies, if the Contract owner is not a natural person.
We will pay the death benefit to the new Contract owner as determined
immediately after the death. The new Contract owner would be a surviving
Contract owner or, if none, the Beneficiary(ies). In the case of the death of an
Annuitant, we will pay the death benefit to the current Contract owner.
A request for payment of the death benefit must include "Due Proof of Death." We
will accept the following documentation as Due Proof of Death:
o a certified copy of a death certificate,
o a certified copy of a decree of a court of competent jurisdiction
as to the finding of death, or
o any other proof acceptable to us.
DEATH BENEFIT AMOUNT
Prior to the Payout Start Date, the death benefit is equal to the greatest of:
1) the Contract Value as of the date we determine the death benefit, or
2) the Settlement Value (that is, the amount payable on a full withdrawal
of Contract Value) on the date we determine the death benefit, or
3) the sum of all purchase payments reduced by a withdrawal adjustment, as
defined below, or
4) the Contract Value calculated on each Death Benefit Anniversary prior to
the date we determine the death benefit, increased by purchase payments
made since that Death Benefit Anniversary and reduced by a withdrawal
adjustment as defined below.
When a death benefit is paid, only a positive aggregate Market Value Adjustment
amount, if any, is applied to the account value attributable to amounts
withdrawn from Guarantee Period(s).
A "Death Benefit Anniversary" is every seventh Contract Anniversary during the
Accumulation Phase. For example, the 7th, 14th, and 21st Contract Anniversaries
are the first three Death Benefit Anniversaries.
The "withdrawal adjustment" is equal to (a) divided by (b), with the result
multiplied by (c), where:
(a) is the withdrawal amount;
(b) is the Contract Value immediately prior to the withdrawal; and
(c) is the value of the applicable death benefit alternative
immediately prior to the withdrawal.
We will determine the value of the death benefit as of the end of the Valuation
Date on which we receive a complete request for payment of the death benefit. If
we receive a request after 4:00 p.m. Eastern Time (3:00 p.m. Central Time) on a
Valuation Date, we will process the request as of the end of the following
Valuation Date.
ENHANCED DEATH BENEFIT OPTION
The Enhanced Death Benefit Option, is an optional benefit that you may select.
This Option is only available if the oldest Contract owner is between the ages
of 0 and 80 on the Issue Date. If the Contract owner is a living individual, the
Enhanced Death Benefit applies only for the death of the Contract owner. If the
Contract owner is not a living individual, the enhanced death benefit applies
only for the death of the Annuitant. The Enhanced Death Benefit Option is not
available to the surviving spouse of a deceased Contract owner who elects to
continue the Contract in the Accumulation Phase. See "Death Benefit Payments,"
below. For Contracts with the Enhanced Death Benefit Rider, the death benefit
will be the greatest of (1) through (4) above, or (5) the Enhanced Death
Benefit, described below. When a death benefit is paid, only a positive
aggregate Market Value Adjustment amount, if any, is applied to the account
value attributable to amounts withdrawn from Guaranteed Period(s).
The Enhanced Death Benefit will never be greater than the maximum death benefit
allowed by any state nonforfeiture laws which govern the Contract.
Enhanced Death Benefit. The Enhanced Death Benefit on the Issue Date is equal to
the initial purchase payment. On each Contract Anniversary, we will recalculate
your Enhanced Death Benefit to equal the greater of your Contract Value on that
date, or the most recently calculated Enhanced Death Benefit. We also will
recalculate your Enhanced Death Benefit whenever you make an additional purchase
payment or a partial withdrawal. Additional purchase payments will increase the
Enhanced Death Benefit dollar-for-dollar. Withdrawals will reduce the Enhanced
Death Benefit by an amount equal to a withdrawal adjustment computed in the
manner described above under "Death Benefit Amount." In the absence of any
withdrawals or purchase payments, the Enhanced Death Benefit will be the
greatest of all Contract Anniversary Contract Values on or before the date we
calculate the death benefit.
We will calculate Anniversary Values for each Contract Anniversary until
the oldest Contract owner's, or Annuitant's if the Contract owner is not a
natural person, 85th birthday. After age 85, we will recalculate the
Enhanced Death Benefit only for purchase payments and withdrawals. The
Enhanced Death Benefit will never be greater than the maximum death benefit
allowed by any non-forfeiture laws which govern the Contract.
DEATH BENEFIT PAYMENTS
A death benefit will be paid:
1) if the Contract owner elects to receive the death benefit within 180 days of
the date of death, and
2) if the death benefit is paid as of the day the value of the death benefit is
determined.
Otherwise, the Settlement Value will be paid. The Contract owner may make a
single withdrawal of any amount within one year of the date of death without
incurring a withdrawal charge. Any applicable positive aggregate Market Value
Adjustment, determined as of the date of the withdrawal, will apply. We reserve
the right to extend the 180 day period when we will pay the death benefit. The
Settlement Value paid will be the Settlement Value next computed on or after the
requested distribution date for payment, or on the mandatory distribution date
of 5 years after the date of death.
In any event, the entire value of the Contract must be distributed within 5
years after the date of death unless an Income Plan is elected or a surviving
spouse continues the Contract in accordance with the provisions described below.
If the Contract owner eligible to receive the death benefit is not a natural
person, the Contract owner may elect to receive the distribution upon death in
one or more distributions.
If the Contract owner is a natural person, the Contract owner may elect to
receive the death benefit either in one or more distributions, or by periodic
payments through an Income Plan. Payments from the Income Plan must begin within
one year of the date of death and must be payable throughout:
o the life of the Contract owner; or
o a period not to exceed the life expectancy of the Contract owner; or
o the life of the Contract owner with payments guaranteed for a period not to
exceed the life expectancy of the Contract owner.
If the surviving spouse of the deceased Contract owner is the new Contract
owner, then the spouse may elect one of the options listed above or may continue
the Contract in the Accumulation Phase as if the death had not occurred.
However, the surviving spouse may not continue the Contract under the Enhanced
Death Benefit Option. Thus, if the Enhanced Death Benefit Option had been
selected and the surviving spouse elects to continue the Contract in the
Accumulation Phase, then the annualized Mortality and Expense Risk Charge of
1.20% will be reduced to 1.00%. The effective date of this change will be the
date we determine the value of the Death Benefit. The Contract may only be
continued once. If the Contract is continued in the Accumulation Phase, the
surviving spouse may make a single withdrawal of any amount within one year of
the date of death without incurring a withdrawal charge. Any applicable positive
aggregate Market Value Adjustment, determined as of the date of the withdrawal,
will apply. On the day the Contract is continued, the Contract Value will be the
death benefit at the end of the Valuation Date after we receive due proof of
death. Prior to the Payout Start Date, the death benefit of the continued
Contract will be the greater of:
(a) the sum of all purchase payments reduced by a withdrawal adjustment, as
defined in the death benefit provision, or
(b) the Contract Value on the date we determine the death benefit.
<PAGE>
MORE INFORMATION
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 One Allstate Drive, Farmingville, New York 11738. Our service center located
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 an AA+ (Very Strong)
financial strength rating and Moody's assigns an Aa2 (Excellent) financial
strength rating to Allstate New York. These ratings do not reflect the
investment performance of the Variable Account. We may from time to time
advertise these ratings in our sales literature.
THE VARIABLE ACCOUNT
Allstate 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 multiple Variable Sub-Accounts, 17 of which are
available through the Contracts. Each Variable Sub-Account invests in a
corresponding Fund. We may add new Variable Sub-Accounts or eliminate one or
more of them, if we believe marketing, tax, or investment conditions so warrant.
We do not guarantee the investment performance of the Variable Account, its
Sub-Accounts or the Funds. We may use the Variable Account to fund our other
annuity contracts. We will account separately for each type of annuity contract
funded by the Variable Account.
THE FUNDS
Dividends and Capital Gain Distributions. We automatically reinvest all
dividends and capital gains distributions from the Funds in shares of the
distributing Fund at their net asset value.
Voting Privileges. As a general matter, you do not have a direct right to vote
the shares of the Funds held by the Variable Sub-Accounts to which you have
allocated your Contract Value. Under current law, however, you are entitled to
give us instructions on how to vote those shares on certain matters. Based on
our present view of the law, we will vote the shares of the Funds that we hold
directly or indirectly through the Variable Account in accordance with
instructions that we receive from Contract owners entitled to give such
instructions.
As a general rule, before the Payout Start Date, the Contract owner or anyone
with a voting interest is the person entitled to give voting instructions. The
number of shares that a person has a right to instruct will be determined by
dividing the Contract Value allocated to the applicable Variable Sub-Account by
the net asset value per share of the corresponding Fund as of the record date of
the meeting. After the Payout Start Date, the person receiving income payments
has the voting interest. The payee's number of votes will be determined by
dividing the reserve for such Contract allocated to the applicable Variable
Sub-Account by the net asset value per share of the corresponding Fund. The
votes decrease as income payments are made and as the reserves for the Contract
decrease.
We will vote shares attributable to Contracts for which we have not received
instructions, as well as shares attributable to us, in the same proportion as we
vote shares for which we have received instructions, unless we determine that we
may vote such shares in our own discretion. We will apply voting instructions to
abstain on any item to be voted on a pro-rata basis to reduce the votes eligible
to be cast.
We reserve the right to vote Fund shares as we see fit without regard to voting
instructions to the extent permitted by law. If we disregard voting
instructions, we will include a summary of that action and our reasons for that
action in the next semi-annual financial report we send to you.
Changes in Funds. If the shares of any of the Funds are no longer available for
investment by the Variable Account or if, in our judgment, further investment in
such shares is no longer desirable in view of the purposes of the Contract, we
may eliminate that Fund and substitute shares of another eligible investment
fund. Any substitution of securities will comply with the requirements of the
1940 Act. We also may add new Variable Sub-Accounts that invest in additional
mutual funds. We will notify you in advance of any changes.
Conflicts of Interest. Certain of the Funds sell their shares to Variable
Accounts underlying both variable life insurance and variable annuity contracts.
It is conceivable that in the future it may be unfavorable for variable life
insurance Variable Accounts and variable annuity Variable Accounts to invest in
the same Fund. The boards of directors of these Funds monitor for possible
conflicts among Variable Accounts buying shares of the Funds. Conflicts could
develop for a variety of reasons. For example, differences in treatment under
tax and other laws or the failure by a Variable Account to comply with such laws
could cause a conflict. To eliminate a conflict, a Fund's board of directors may
require a Variable Account to withdraw its participation in a Fund. A Fund's net
asset value could decrease if it had to sell investment securities to pay
redemption proceeds to a Variable Account withdrawing because of a conflict.
THE CONTRACT
Distribution. ALFS, Inc* ("ALFS"), located at 3100 Sanders Road, Northbrook, IL
60062-7154, serves as principal underwriter of the Contracts. ALFS is a wholly
owned subsidiary of Allstate Life Insurance Company. ALFS is a registered broker
dealer under the Securities and Exchange Act of 1934, as amended ("Exchange
Act"), and is a member of the National Association of Securities Dealers, Inc.
We will pay commissions to broker-dealers who sell the Contracts. Commissions
paid may vary, but we estimate that the total commissions paid on all Contract
sales will not exceed 8% of any purchase payments. Sometimes, we also pay the
broker-dealer a persistency bonus in addition to the standard commissions. A
persistency bonus is not expected to exceed 1.2%, on an annual basis, of the
purchase payments considered in connection with the bonus. These commissions are
intended to cover distribution expenses. Contracts may be sold by
representatives or employees of banks which may be acting as broker-dealers
without separate registration under the Exchange Act, pursuant to legal and
regulatory exceptions.
Allstate New York does not pay ALFS a commission for distribution of the
Contracts. The underwriting agreement with ALFS provides that we will reimburse
ALFS for any liability to Contract owners arising out of services rendered or
Contracts issued.
Administration. We have primary responsibility for all administration of the
Contracts and the Variable Account. We provide the following administrative
services, among others:
o issuance of the Contracts;
o maintenance of Contract owner records;
o Contract owner services;
o calculation of unit values;
o maintenance of the Variable Account; and
o preparation of Contract owner reports.
We will send you Contract statements and transaction confirmations at least
annually. The annual statement details values and specific Contract data for
each particular Contract. You should notify us promptly in writing of any
address change. You should read your statements and confirmations carefully and
verify their accuracy. You should contact us promptly if you have a question
about a periodic statement. We will investigate all complaints and make any
necessary adjustments retroactively, but you must notify us of a potential error
within a reasonable time after the date of the questioned statement. If you wait
too long, we will make the adjustment as of the date that we receive notice of
the potential error.
We also will provide you with additional periodic and other reports, information
and prospectuses as may be required by federal securities laws.
- ------------
*Effective May 1, 2000, Allstate Life Financial Services, Inc. was renamed ALFS.
Inc.
<PAGE>
QUALIFIED PLANS
If you use the Contract with a qualified plan, the plan may impose different or
additional conditions or limitations on withdrawals, waivers of withdrawal
charges, death benefits, Payout Start Dates, income payments, and other Contract
features. In addition, adverse tax consequences may result if qualified plan
limits on distributions and other conditions are not met. Please consult your
qualified plan administrator for more information.
LEGAL MATTERS
Freedman, Levy, Kroll & Simonds, Washington, D.C., has advised Allstate New York
on certain federal securities law matters. All matters of New York law
pertaining to the Contracts, including the validity of the Contracts and
Allstate 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.
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 have failed to operate properly in or after the year 1999, if the
software was not reprogrammed or replaced ("Year 2000 Issue"). Allstate New York
believes that many of its counterparties and suppliers also had potential Year
2000 Issues that could affect Allstate New York. In 1995, Allstate Insurance
Company commenced a four-phase plan intended to mitigate and/or prevent the
adverse effects of Year 2000 Issues. These strategies included 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 included 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.
Because of the accuracy of this plan, and its timely completion, Allstate New
York has experienced no material impacts on its results of operations, liquidity
or financial position due to the Year 2000 issue. Year 2000 costs are expensed
as incurred.
<PAGE>
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 Contract 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 the Contract are different than those described by the IRS in
rulings in which it found that contract owners were not owners of Variable
Account assets. For example, you have the choice to allocate premiums and
Contract Values among more investment alternatives. Also, you may be able to
transfer among investment alternatives more frequently than in such rulings.
These differences could result in you being treated as the owner of the Variable
Account. If this occurs, income and gain from the Variable Account assets would
be includible in your gross income. Allstate New York does not know what
standards will be set forth in any regulations or rulings which the Treasury
Department may issue. It is possible that future standards announced by the
Treasury Department could adversely affect the tax treatment of your Contract.
We reserve the right to modify the Contract as necessary to attempt to prevent
you from being considered the federal tax owner of the assets of the Variable
Account. However, we make no guarantee that such modification to the Contract
will be successful.
Taxation of Partial and Full Withdrawals. If you make a partial withdrawal under
a non-Qualified Contract, amounts received are taxable to the extent the
Contract Value, without regard to surrender charges, exceeds the investment in
the Contract. The investment in the Contract is the gross premium paid for the
Contract minus any amounts previously received from the Contract if such amounts
were properly excluded from your gross income. If you make a partial withdrawal
under a Qualified Contract, the portion of the payment that bears the same ratio
to the total payment that the investment in the Contract (i.e., nondeductible
IRA contributions, after tax contributions to qualified plans) bears to the
contract value, is excluded from your income. If you make a full withdrawal
under a non-Qualified Contract or a Qualified Contract, the amount received will
be taxable only to the extent it exceeds the investment in the contract.
"Nonqualified distributions" from Roth IRAs are treated as made from
contributions first and are included in gross income only to the extent that
distributions exceed contributions. "Qualified distributions" from Roth IRAs are
not included in gross income. "Qualified distributions" are any distributions
made more than 5 taxable years after the taxable year of the first contribution
to any Roth IRA and which are:
o made on or after the date the individual attains age 59 1/2,
o made to a beneficiary after the Contract owner's death,
o attributable to the Contract owner being disabled, or
o for a first time home purchase (first time home purchases are subject to
a lifetime limit of $10,000).
If you transfer a non-Qualified Contract without full and adequate consideration
to a person other than your spouse (or to a former spouse incident to a
divorce), you will be taxed on the difference between the Contract Value and the
investment in the Contract at the time of transfer. Except for certain Qualified
Contracts, any amount you receive as a loan under a Contract, and any assignment
or pledge (or agreement to assign or pledge) of the Contract Value is treated as
a withdrawal of such amount or portion.
Taxation of Annuity Payments. Generally, the rule for income taxation of annuity
payments received from a non-Qualified Contract provides for the return of your
investment in the Contract in equal tax-free amounts over the payment period.
The balance of each payment received is taxable. For fixed annuity payments, the
amount excluded from income is determined by multiplying the payment by the
ratio of the investment in the Contract (adjusted for any refund feature or
period certain) to the total expected value of annuity payments for the term of
the contract. If you elect variable annuity payments, the amount excluded from
taxable income is determined by dividing the investment in the Contract by the
total number of expected payments. The annuity payments will be fully taxable
after the total amount of the investment in the Contract is excluded using these
ratios. If you die, and annuity payments cease before the total amount of the
investment in the Contract is recovered, the unrecovered amount will be allowed
as a deduction for your last taxable year.
Taxation of Annuity Death Benefits. Death of a Contract owner, or death of the
Annuitant if the Contract is owned by a non-natural person, will cause a
distribution of death benefits from a Contract. Generally, such amounts are
included in income as follows:
1) if distributed in a lump sum, the amounts are taxed in the same manner
as a full withdrawal, or
2) if distributed under an annuity option, the amounts are taxed in the
same manner as an annuity payment. Please see the Statement of Additional
Information for more detail on distribution at death requirements.
Penalty Tax on Premature Distributions. A 10% penalty tax applies to the taxable
amount of any premature distribution from a non-Qualified Contract. The penalty
tax generally applies to any distribution made prior to the date you attain age
59 1/2. However, no penalty tax is incurred on distributions:
1) made on or after the date the Contract owner attains age 59 1/2;
2) made as a result of the Contract owner's death or disability;
3) made in substantially equal periodic payments over the owner's life or
life expectancy,
4) made under an immediate annuity; or
5) attributable to investment in the contract before August 14, 1982.
You should consult a competent tax advisor to determine if any other exceptions
to the penalty apply to your situation. Similar exceptions may apply to
distributions from Qualified Contracts.
Aggregation of Annuity Contracts. All non-qualified deferred annuity contracts
issued by Allstate New York (or its affiliates) to the same Contract owner
during any calendar year will be aggregated and treated as one annuity contract
for purposes of determining the taxable amount of a distribution.
TAX QUALIFIED CONTRACTS
The income on qualified plan and IRA investments is tax deferred and variable
annuities held by such plans do not receive any additional tax deferral. You
should review the annuity features, including all benefits and expenses, prior
to purchasing a variable annuity in a qualified plan or IRA.
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.
Allstate New York reserves the right to limit the availability of the Contract
for use with any of the qualified plans listed above. In the case of certain
qualified plans, the terms of the plans may govern the right to benefits,
regardless of the terms of the Contract.
Restrictions Under Section 403(b) Plans. Section 403(b) of the Tax Code provides
tax-deferred retirement savings plans for employees of certain non-profit and
educational organizations. Under Section 403(b), any Contract used for a 403(b)
plan must provide that distributions attributable to salary reduction
contributions made after December 31, 1988, and all earnings on salary reduction
contributions, may be made only:
1) on or after the date the employee
o attains age 59 1/2,
o separates from service,
o dies,
o becomes disabled, or
2) on account of hardship (earnings on salary reduction contributions may not be
distributed on the account of hardship).
These limitations do not apply to withdrawals where Allstate New York is
directed to transfer some or all of the Contract Value to another 403(b) plan.
INCOME TAX WITHHOLDING
Allstate 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.
<PAGE>
ANNUAL REPORTS AND OTHER DOCUMENTS
Allstate New York's annual report on Form 10-K for the year ended December 31,
1999 is incorporated herein by reference, which means that it is legally a part
of this prospectus.
After the date of this prospectus and before we terminate the offering of the
securities under this prospectus, all documents or reports we file with the SEC
under the Exchange Act are also incorporated herein by reference, which means
that they also legally become a part of this prospectus.
Statements in this prospectus, or in documents that we file later with the SEC
and that legally become a part of this prospectus, may change or supersede
statements in other documents that are legally part of this prospectus.
Accordingly, only the statement that is changed or replaced will legally be a
part of this prospectus.
We file our Exchange Act documents and reports, including our annual and
quarterly reports on Form 10-K and Form 10-Q electronically on the SEC's "EDGAR"
system using the identifying number CIK No. 0000948255. The SEC maintains a Web
site that contains reports, proxy and information statements and other
information regarding registrants that file electronically with the SEC. The
address of the site is http://www.sec.gov. You also can view these materials at
the SEC's Public Reference Room at 450 Fifth Street, N.W., Washington, D.C.
20549. For more information on the operations of SEC's Public Reference Room,
call 1-800-SEC-0330.
If you have received a copy of this prospectus, and would like a free copy of
any document incorporated herein by reference (other than exhibits not
specifically incorporated by reference into the text of such documents), please
write or call us at Customer Service, P.O. Box 94038, Palatine, Illinois
60094-4038 (telephone: 1-800-692-4682).
<PAGE>
PERFORMANCE INFORMATION
We may advertise the performance of the Variable Sub-Accounts, including yield
and total return information. Yield refers to the income generated by an
investment in a Variable Sub-Account over a specified period. Total return
represents the change, over a specified period of time, in the value of an
investment in a Variable Sub-Account after reinvesting all income distributions.
All performance advertisements will include, as applicable, standardized yield
and total return figures that reflect the deduction of insurance charges, the
contract maintenance charge, and withdrawal charge. Performance advertisements
also may include total return figures that reflect the deduction of insurance
charges, but not the contract maintenance or withdrawal charges. The deduction
of such charges would reduce the performance shown. In addition, performance
advertisements may include aggregate, average, year-by-year, or other types of
total return figures.
Performance information for periods prior to the inception date of the Variable
Sub-Accounts will be based on the historical performance of the corresponding
Funds for the periods beginning with the inception dates of the Funds and
adjusted to reflect current Contract expenses. You should not interpret these
figures to reflect actual historical performance of the Variable Account.
We may include in advertising and sales materials tax deferred compounding
charts and other hypothetical illustrations that compare currently taxable and
tax deferred investment programs based on selected tax brackets. Our
advertisements also may compare the performance of our Variable Sub-Accounts
with: (a) certain unmanaged market indices, including but not limited to the Dow
Jones Industrial Average, the Standard & Poor's 500, and the Shearson Lehman
Bond Index; and/or (b) other management investment companies with investment
objectives similar to the underlying funds being compared. In addition, our
advertisements may include the performance ranking assigned by various
publications, including the Wall Street Journal, Forbes, Fortune, Money,
Barron's, Business Week, USA Today, and statistical services, including Lipper
Analytical Services Mutual Fund Survey, Lipper Annuity and Closed End Survey,
the Variable Annuity Research Data Survey, and SEI.
EXPERTS
The financial statements and related financial statement schedules of Allstate
Life Insurance Company of New York as of December 31, 1999 and 1998 and for each
of the three years in the period ended December 31, 1999, which are incorporated
herein by reference, have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report, which is incorporated herein by reference,
and are included in reliance upon the report of such firm given upon their
authority as experts in accounting and auditing.
The financial statements of the Variable Account as of December 31, 1999 and for
each of the periods in the two years then ended, which are incorporated herein
by reference, have been audited by Deloitte & Touche LLP, independent auditors,
as stated in their report, which is incorporated herein by reference, and are
included in reliance upon the report of such firm given upon their authority as
experts in accounting and auditing.
<PAGE>
APPENDIX A
MARKET VALUE ADJUSTMENT EXAMPLES
The Market Value Adjustment is based on the following:
I = the Treasury Rate for a maturity equal to the applicable Guarantee
Period for the week preceding the establishment of the Guarantee
Period.
N = the number of whole and partial years from the date we receive the
withdrawal, transfer or death benefit request, or from the Payout Start
Date to the end of the Guarantee Period.
J = the Treasury Rate for a maturity of length N for the week preceding
the receipt of the withdrawal, transfer, death benefit, or income
payment request. If a note with a maturity of length N is not
available, a weighted average will be used. If N is one year or less, J
will be the 1-year Treasury Rate.
Treasury Rate means the U.S. Treasury Note Constant Maturity yield as
reported in Federal Reserve Bulletin Release H.15.
The Market Value Adjustment factor is determined from the following formula:
.9 X (I - J) X N
To determine the Market Value Adjustment, we will multiply the Market Value
Adjustment factor by the amount transferred, withdrawn (in excess of the
Preferred Withdrawal Amount), paid as a death benefit, or applied to an Income
Plan, from a Guarantee Period at any time other than during the 30 day period
after such Guarantee Period expires.
<PAGE>
<TABLE>
<CAPTION>
EXAMPLES OF MARKET VALUE ADJUSTMENT
<S> <C>
Purchase Payment: $10,000 allocated to a Guarantee Period
Guarantee Period: 5 years
Guaranteed Interest Rate: 4.50%
5 Year Treasury Rate at the time the
Guarantee Period is established: 4.50%
Full Surrender: End of Contract Year 3
NOTE: These examples assume that premium taxes are not applicable.
EXAMPLE 1: (Assumes declining interest rates)
Step 1. Calculate Contract Value at End of Contract Year 3: $10,000.00 X (1.045)3 = $11,411.66
Step 2. Calculate the Preferred Withdrawal Amount: .15 X $10,000.00 x (1.45)2 = $1,638.04
Step 3. Calculate the Market Value Adjustment: I = 4.5%
J = 4.2%
730 days
--------
N = 365 days = 2
Market Value Adjustment Factor: .9 X (I-J) X N
= .9 X (.045 - .042) X (730/365) = .0054
Market Value
Adjustment =
Market Value
Adjustment
Factor X
Amount Subject
to Market
Value
Adjustment:
= .0054 X ($11,411.66 - $1,638.04) = $52.78
Step 4. Calculate the Withdrawal Charge: .05 X ($10,000.00 - $1,638.04 + $52.78) = $420.74
Step 5. Calculate the amount received by Customers as a
result of full withdrawal at the end of Contract Year 3: $11,411.66 - $420.74 + 52.78 = $11,043.70
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXAMPLE 2: (Assumes rising interest rates)
<S> <C>
Step 1. Calculate Contract Value at End of Contract Year 3: $10,000.00 X (1.045)3 = $11,411.66
Step 2. Calculate the Preferred Withdrawal Amount: .15 X $10,000.00 X (1.045)2 = $1,638.04
Step 3. Calculate the Market Value Adjustment: I = 4.5%
J = 4.8%
730 days
--------
N = 365 days = 2
Market Value Adjustment Factor: .9 X (I-J) X N
= .9 X (.045 - .048) X (730/365) = -.0054
Market Value Adjustment = Market Value Adjustment Factor
X Amount Subject to Market
Value Adjustment
-.0054 X ($11,411.66 - $1,683.04) = - $52.78
Step 4. Calculate the Withdrawal Charge: .05 X ($10,000.00 - $1,683.04 - $52.78) = $415.46
Step 5. Calculate the amount received by customers as a
result of full withdrawal at the end of Contract Year 3: $11,411.66 - $415.46 - $52.78 = $10,943.42
</TABLE>
<PAGE>
APPENDIX B
WITHDRAWAL ADJUSTMENT EXAMPLE
Issue Date: January 1, 1999
Initial Purchase Payment: $50,000
<TABLE>
<CAPTION>
Death Benefit Amount
Contract Contract Death
Value Before Transaction Value Benefit Greatest
Occurrence Amount After Anniversary Anniversary
Date Type of Occurrence Occurrence Value Value
<S> <C> <C> <C> <C> <C> <C>
1/1/99 Issue Date - $50,000 $50,000 $50,000 $50,000
1/1/00 Contract Anniversary $55,000 - $55,000 $50,000 $55,000
7/1/00 Partial Withdrawal $60,000 $15,000 $45,000 $37,500 $41,250
Withdrawal adjustment equals the partial withdrawal amount divided by the
Contract Value immediately prior to the partial withdrawal multiplied by the
value of the applicable death benefit amount alternative immediately prior to
the partial withdrawal.
Death Benefit Anniversary Value Death Benefit
Partial Withdrawal Amount (w) $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000
Value of Applicable Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $50,000
Withdrawal Adjustment [(w)/(a)]*(d) $12,500
Adjusted Death Benefit $37,500
Maximum Anniversary Value Death Benefit
Partial Withdrawal Amount (w) $15,000
Contract Value Immediately Prior to Partial Withdrawal (a) $60,000
Value of Applicable Death Benefit Amount Immediately Prior to Partial Withdrawal (d) $55,000
Withdrawal Adjustment [(w)/a)]*(d) $13,750
Adjusted Death Benefit $41,250
This example represents the proportional reduction applicable in all contracts.
</TABLE>
<PAGE>
STATEMENT OF ADDITIONAL INFORMATION
TABLE OF CONTENTS
Description Page
Additions, Deletions or Substitutions of Investments
The Contract
Purchase of Contracts
Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers)
Performance Information
Calculation of Accumulation Unit Values
Calculation of Variable Income Payments
General Matters
Incontestability
Settlements
Safekeeping of the Variable Account's Assets
Premium Taxes
Tax Reserves
Federal Tax Matters
Qualified Plans
Experts
Financial Statements
This prospectus does not constitute an offering in any jurisdiction in which
such offering may not lawfully be made. We do not authorize anyone to provide
any information or representations regarding the offering described in this
prospectus other than as contained in this prospectus.
[back cover]
<PAGE>
EXPLANATORY NOTE
The financial statements of the Variable Account and Allstate New York that
appear in this amendment to the Registration Statement ("Amendment") are to be
considered as appearing in each Statement of Additional Information contained in
this Amendment.
<PAGE>
THE AIM LIFETIME PLUS(sm) VARIABLE ANNUITY
<TABLE>
<CAPTION>
<S> <C>
Allstate Life Insurance Company of New York Statement of Additional Information
Allstate Life of New York Separate Account A dated May 1, 2000
One Allstate Drive, Farmingville, New York 11738
Service Center
P.O. Box 94038, Palatine, IL 60094-4038
1 (800) 692-4682
</TABLE>
This Statement of Additional Information supplements the information in the
prospectus for the AIM Lifetime Plus(sm) Variable Annuity. This Statement of
Additional Information is not a prospectus. You should read it with the
prospectus, dated May 1, 2000, for the Contract. You may obtain a prospectus by
calling or writing us at the address or telephone number listed above.
Except as otherwise noted, this Statement of Additional Information uses the
same defined terms as the prospectus.
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Description Page
Additions, Deletions or Substitutions of Investments 3
The Contract 4
Purchase of Contracts 4
Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) 4
Performance Information 5
Calculation of Accumulation Unit Values 9
Calculation of Variable Income Payments 10
General Matters
Incontestability 11
Settlements 11
Safekeeping of the Variable Account's Assets 11
Premium Taxes 11
Tax Reserves 11
Federal Tax Matters 12
Qualified Plans 13
Experts 15
Financial Statements 16
</TABLE>
<PAGE>
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
We may add, delete, or substitute the Fund shares held by any Variable
Sub-Account to the extent the law permits. We may substitute shares of any Fund
with those of another Fund of the same or different mutual fund if the shares of
the Fund are no longer available for investment, or if we believe investment in
any Fund would become inappropriate in view of the purposes of the Variable
Account.
We will not substitute shares attributable to a Contract owner's interest in a
Variable Sub-Account until we have notified the Contract owner of the change,
and until the Securities and Exchange Commission has approved the change, to the
extent such notification and approval are required by law. Nothing contained in
this Statement of Additional Information shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts, or from
effecting a conversion between series or classes of contracts on the basis of
requests made by Contract owners.
We also may establish additional Variable Sub-Accounts or series of Variable
Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a
new Fund of the same or different mutual fund. We may establish new Variable
Sub-Accounts when we believe marketing needs or investment conditions warrant.
We determine the basis on which we will offer any new Variable Sub-Accounts in
conjunction with the Contract to existing Contract owners. We may eliminate one
or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or
investment conditions so warrant.
We may, by appropriate endorsement, change the Contract as we believe necessary
or appropriate to reflect any substitution or change in the Funds. If we believe
the best interests of persons having voting rights under the Contracts would be
served, we may operate the Variable Account as a management company under the
Investment Company Act of 1940 or we may withdraw its registration under such
Act if such registration is no longer required.
<PAGE>
THE CONTRACT
The Contract is primarily designed to aid individuals in long-term financial
planning. You can use it for retirement planning regardless of whether the
retirement plan qualifies for special federal income tax treatment.
PURCHASE OF CONTRACTS
We are no longer offering new Contracts. We offered the Contracts to the public
through banks as well as brokers licensed under the federal securities laws and
state insurance laws. The principal underwriter for the Variable Account is
ALFS, Inc. ("ALFS"), an affiliate of Allstate New York.
TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS)
We accept purchase payments that are the proceeds of a Contract in a transaction
qualifying for a tax-free exchange under Section 1035 of the Internal Revenue
Code ("Code"). Except as required by federal law in calculating the basis of the
Contract, we do not differentiate between Section 1035 purchase payments and
non-Section 1035 purchase payments.
We also accept "rollovers" and transfers from Contracts qualifying as
tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts
("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an
IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other
Qualified Contracts to the extent necessary to comply with federal tax laws. For
example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the
Contracts will continue to qualify for special tax treatment. A Contract owner
contemplating any such exchange, rollover or transfer of a Contract should
contact a competent tax adviser with respect to the potential effects of such a
transaction.
PERFORMANCE INFORMATION
From time to time we may advertise the "standardized," "non-standardized," and
"adjusted historical" total returns of the Variable Sub-Accounts, as described
below. Please remember that past performance is not an estimate or guarantee of
future performance and does not necessarily represent the actual experience of
amounts invested by a particular Contract owner. Also, please note that the
performance figures shown do not reflect any applicable taxes.
STANDARDIZED TOTAL RETURNS
A Variable Sub-Account's standardized total return represents the average annual
total return of that Sub-Account over a particular period. We compute
standardized total return by finding the annual percentage rate that, when
compounded annually, will accumulate a hypothetical $1,000 purchase payment to
the redeemable value at the end of the one, five or ten year period, or for a
period from the date of commencement of the Variable Sub-Account's operations,
if shorter than any of the foregoing. We use the following formula prescribed by
the SEC for computing standardized total return:
1000(1 + T)n = ERV
where:
T = average annual total return
ERV = ending redeemable value of a hypothetical $1,000 payment
made at the beginning of 1, 5, or 10 year periods or shorter period
n = number of years in the period
1000 = hypothetical $1,000 investment
When factoring in the withdrawal charge assessed upon redemption, we exclude the
Preferred Withdrawal Amount, which is the amount you can withdraw from the
Contract without paying a withdrawal charge. We also use the withdrawal charge
that would apply upon redemption at the end of each period. Thus, for example,
when factoring in the withdrawal charge for a one year standardized total return
calculation, we would use the withdrawal charge that applies to a withdrawal of
a purchase payment made one year prior.
When factoring in the contract maintenance charge, we pro rate the charge by
dividing (i) the contract maintenance charges by (ii) the average Contract size
of $57,476. We then multiply the resulting percentage by a hypothetical $1,000
investment.
The standardized total returns for the Variable Sub-Accounts for the periods
ended December 31, 1999 are set out below. No standardized total returns are
shown for the AIM V.I. Money Market Variable Sub-Account. In addition, no
standardized total returns are shown for the AIM V.I. Blue Chip, AIM V.I. Dent
Demographic Trends, AIM V.I. Global Growth and Income, and AIM V.I.
Telecommunications and Technology Variable Sub-Accounts, which commenced
operations on January 3, 2000.
The inception dates of the Variable Sub-Accounts are as follows:
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. Aggressive Growth October 25, 1999
AIM V.I. Balanced October 25, 1999
AIM V.I. Blue Chip January 3, 2000
AIM V.I. Capital Appreciation October 14, 1996
AIM V.I. Capital Development October 25, 1999
AIM V.I. Dent Demographic Trends January 3, 2000
AIM V.I. Diversified Income October 14, 1996
AIM V.I. Global Growth and Income January 3, 2000
AIM V.I. Global Utilities October 14, 1996
AIM V.I. Government Securities October 14, 1996
AIM V.I. Growth October 14, 1996
AIM V.I. Growth and Income October 14, 1996
AIM V.I. High Yield October 25, 1999
AIM V.I. International Equity October 14, 1996
AIM V.I. Telecommunications and Technology January 3, 2000
AIM V.I. Value October 14, 1996
</TABLE>
<TABLE>
<CAPTION>
Since
Variable Sub-Account One Year Five Years Inception
<S> <C> <C> <C>
AIM V.I. Aggressive Growth N/A N/A 21.34%*
AIM V.I. Balanced N/A N/A 7.81%*
AIM V.I. Capital Appreciation 37.08% N/A 20.47%
AIM V.I. Capital Development N/A N/A 21.84%*
AIM V.I. Diversified Income -5.72% N/A 2.93%
AIM V.I. Global Utilities 26.18% N/A 22.10%
AIM V.I. Government Securities -10.86% N/A 2.36%
AIM V.I. Growth 27.83% N/A 27.84%
AIM V.I. Growth and Income 26.86% N/A 25.95%
AIM V.I. High Yield N/A N/A -0.90%*
AIM V.I. International Equity 47.36% N/A 21.99%
AIM V.I. Value 22.57% N/A 26.01%
</TABLE>
*Standardized total returns for the AIM V.I. Aggressive Growth, AIM V.I.
Balanced, AIM V.I. Capital Development and AIM V.I. High Yield Variable
Sub-Accounts are not annualized.
NON-STANDARDIZED TOTAL RETURNS
From time to time, we also may quote rates of return that reflect changes in the
values of each Variable Sub-Account's Accumulation Units. We may quote these
"non-standardized total returns" on an annualized, cumulative, year-by-year, or
other basis. These rates of return take into account asset-based charges, such
as the mortality and expense risk charge and administration charge. However,
these rates of return do not reflect withdrawal charges, contract maintenance
charges, or any taxes. Such charges, if reflected, would reduce the performance
shown.
Annualized returns reflect the rate of return that, when compounded annually,
would equal the cumulative rate of return for the period shown. We compute
annualized returns according to the following formula:
Annualized Return = (1 + r)1/n - 1
where r = cumulative rate of return for the period shown, and n = number of
years in the period.
The method of computing annualized rates of return is similar to that for
computing standardized performance, described above, except that rather than
using a hypothetical $1,000 investment and the ending redeemable value thereof,
we use the changes in value of an Accumulation Unit.
Cumulative rates of return reflect the cumulative change in value of an
Accumulation Unit over the period shown. Year-by-year rates of return reflect
the change in value of an Accumulation Unit during the course of each year
shown. We compute these returns by dividing the Accumulation Unit Value at the
end of each period shown, by the Accumulation Unit Value at the beginning of
that period, and subtracting one. We compute other total returns on a similar
basis.
We may quote non-standardized total returns for 1, 3, 5 and 10 year periods, or
period since inception of the Variable Sub-Account's operations, as well as
other periods, such as year-to-date (prior calendar year end to the day stated
in the advertisement); "year to most recent quarter" (prior calendar year end to
the end of the most recent quarter); "the prior calendar year"; and the "n" most
recent calendar years.
The non-standardized annualized total returns for the Variable Sub-Accounts for
the period ended December 31, 1999 are set out below. No non-standardized
annualized total returns are shown for the AIM V.I. Money Market Variable
Sub-Account. In addition, no non-standardized annualized total returns are shown
for the AIM V.I. Blue Chip, AIM V.I. Dent Demographic Trends, AIM V.I. Global
Growth and Income, and AIM V.I. Telecommunications and Technology Variable
Sub-Accounts, which commenced operations on January 3, 2000.
The inception date of each Variable Sub-Account appears under "Standardized
Total Returns," above.
<TABLE>
<CAPTION>
Since
Variable Sub-Account One Year Five Years Inception
<S> <C> <C>
AIM V.I. Aggressive Growth N/A N/A 27.69%*
AIM V.I. Balanced N/A N/A 14.17%*
AIM V.I. Capital Appreciation 42.53% N/A 21.27%
AIM V.I. Capital Development N/A N/A 28.20%*
AIM V.I. Diversified Income -0.27% N/A 4.04%
AIM V.I. Global Utilities 31.64% N/A 22.88%
AIM V.I. Government Securities -5.41% N/A 3.48%
AIM V.I. Growth 33.29% N/A 28.55%
AIM V.I. Growth and Income 32.32% N/A 26.68%
AIM V.I. High Yield N/A N/A 5.46%*
AIM V.I. International Equity 52.82% N/A 22.77%
AIM V.I. Value 28.03% N/A 26.74%
</TABLE>
*Non-standardized total returns for the AIM V.I. Aggressive Growth, AIM V.I.
Balanced, AIM V.I. Capital Development and AIM V.I. High Yield Variable
Sub-Accounts are not annualized.
ADJUSTED HISTORICAL TOTAL RETURNS
We may advertise the total return for periods prior to the date that the
Variable Sub-Accounts commenced operations. We will calculate such "adjusted
historical total returns" using the historical performance of the underlying
Funds and adjusting such performance to reflect the current level of charges
that apply to the Variable Sub-Accounts under the Contract, the contract
maintenance charge and the appropriate withdrawal charge.
The adjusted historical total returns for the Variable Sub-Accounts for the
periods ended December 31, 1999 are set out below. No adjusted historical total
returns are shown for the AIM V.I. Money Market Variable Sub-Account.
The following list provides the inception date for the Fund corresponding to
each of the Variable Sub-Accounts included in the tables.
<TABLE>
<CAPTION>
Inception Date of
Variable Sub-Account Corresponding Fund
<S> <C>
AIM V.I. Aggressive Growth May 1, 1998
AIM V.I. Balanced May 1, 1998
AIM V.I. Blue Chip December 29, 1999
AIM V.I. Capital Appreciation May 5, 1993
AIM V.I. Capital Development May 1, 1998
AIM V.I. Dent Demographic Trends December 29, 1999
AIM V.I. Diversified Income May 5, 1993
AIM V.I. Global Growth and Income February 10, 1993*
AIM V.I. Global Utilities May 2, 1994
AIM V.I. Government Securities May 5, 1993
AIM V.I. Growth May 5, 1993
AIM V.I. Growth and Income May 2, 1994
AIM V.I. High Yield May 1, 1998
AIM V.I. International Equity May 5, 1993
AIM V. I. Telecommunications and Technology October 18, 1993*
AIM V.I. Value Fund May 5, 1993
</TABLE>
*The inception date of the AIM V.I. Global Growth and Income and AIM V.I.
Telecommunications and Technology Funds ("AIM V.I. Funds") is October 15, 1999.
For periods prior to the inception dates of the AIM V.I. Funds, the performance
shown is based on the historical performance of the AIM G.T. Global Growth &
Income and AIM G.T. Telecommunications Funds, adjusted to reflect the current
expenses of the AIM V.I. Funds.
<TABLE>
<CAPTION>
10 Years or
Since Inception of Fund
Variable Sub-Account One Year Five Years (if less)
<S> <C> <C>
AIM V.I. Aggressive Growth 36.23% N/A 18.95%
AIM V.I. Balanced 11.23% N/A 13.89%
AIM V.I. Blue Chip N/A N/A 0%*
AIM V.I. Capital Appreciation 37.08% 23.59% 20.49%
AIM V.I. Capital Development 20.89% N/A 6.19%
AIM V.I. Dent Demographic Trends N/A N/A 0%*
AIM V.I. Diversified Income -5.72% 6.62% 4.74%
AIM V. I. Global Growth and Income -7.94% 11.36% 9.90%
AIM V.I. Global Utilities 26.18% 19.90% 16.54%
AIM V.I. Government Securities -10.86% 4.45% 2.99%
AIM V.I. Growth 27.83% 27.60% 21.08%
AIM V.I. Growth and Income 26.86% 26.15% 22.54%
AIM V.I. High Yield 2.58% N/A -6.27%
AIM V.I. International Equity 47.36% 19.96% 17.02%
AIM V. I. Telecommunications and 97.23% 31.56% 27.58%**
Technology
AIM V.I. Value 22.57% 25.21% 21.22%
</TABLE>
*Adjusted historical total returns for the AIM V.I. Blue Chip and Dent
Demographic Trends Variable Sub-Accounts are not annualized.
**Effective May 1, 2000, the AIM V.I. Telecommunications Fund changed its name
to AIM V.I. Telecommunications and Technology Fund to reflect changes in its
investment policies. Performance shown for this Fund reflects the investment
policies of the Fund prior to the change.
CALCULATION OF ACCUMULATION UNIT VALUES
The value of Accumulation Units will change each Valuation Period according to
the investment performance of the Fund shares purchased by each Variable
Sub-Account and the deduction of certain expenses and charges. A "Valuation
Period" is the period from the end of one Valuation Date and continues to the
end of the next Valuation Date. A Valuation Date ends at the close of regular
trading on the New York Stock Exchange (currently 4:00 p.m. Eastern Time).
The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period
equals the Accumulation Unit Value as of the immediately preceding Valuation
Period, multiplied by the Net Investment Factor (described below) for that
Sub-Account for the current Valuation Period.
NET INVESTMENT FACTOR
The Net Investment Factor for a Valuation Period is a number representing the
change, since the last Valuation Period, in the value of Sub-account assets per
Accumulation Unit due to investment income, realized or unrealized capital gain
or loss, deductions for taxes, if any, and deductions for the mortality and
expense risk charge and administrative expense charge. We determine the Net
Investment Factor for each Variable Sub-Account for any Valuation Period by
dividing (A) by (B) and subtracting (C) from the result, where:
(A) is the sum of:
(1) the net asset value per share of the Fund underlying the Variable
Sub-Account determined at the end of the current Valuation Period; plus,
(2) the per share amount of any dividend or capital gain distributions made
by the Fund underlying the Variable Sub-Account during the current Valuation
Period;
(B) is the net asset value per share of the Fund underlying the Variable
Sub-Account determined as of the end of the immediately preceding Valuation
Period; and
(C) is the sum of the annualized mortality and expense risk and administrative
expense charges divided by 365 days and then multiplied by the number of
calendar days in the current Valuation Period.
CALCULATION OF VARIABLE INCOME PAYMENTS
We calculate the amount of the first variable income payment under an Income
Plan by applying the Contract Value allocated to each Variable Sub-Account less
any applicable premium tax charge deducted at the time, to the income payment
tables in the Contract. We divide the amount of the first variable annuity
income payment by the Variable Sub-Account's then current Annuity Unit value to
determine the number of annuity units ("Annuity Units") upon which later income
payments will be based. To determine income payments after the first, we simply
multiply the number of Annuity Units determined in this manner for each Variable
Sub-Account by the then current Annuity Unit value ("Annuity Unit Value") for
that Variable Sub-Account.
CALCULATION OF ANNUITY UNIT VALUES
Annuity Units in each Variable Sub-Account are valued separately and Annuity
Unit Values will depend upon the investment experience of the particular Fund in
which the Variable Sub-Account invests. We calculate the Annuity Unit Value for
each Variable Sub-Account at the end of any Valuation Period by:
o multiplying the Annuity Unit Value at the end of the immediately
preceding Valuation Period by the Variable Sub-Account's Net Investment
Factor (described in the preceding section) for the Period; and then
o dividing the product by the sum of 1.0 plus the assumed investment rate
for the Valuation Period.
The assumed investment rate adjusts for the interest rate assumed in the income
payment tables used to determine the dollar amount of the first variable income
payment, and is at an effective annual rate which is disclosed in the Contract.
We determine the amount of the first variable income payment paid under an
Income Plan using the income payment tables set out in the Contracts. The
Contracts include tables that differentiate on the basis of sex, except in
states that require the use of unisex tables.
<PAGE>
GENERAL MATTERS
- ------------------------------------------------------------------------------
INCONTESTABILITY
We will not contest the Contract after we issue it.
SETTLEMENTS
We may require you to return the Contract to us prior to any settlement. We must
receive due proof of the Contract owner(s) death (or Annuitant's death if there
is a non-natural Contract owner) before we will settle a death claim.
SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS
We hold title to the assets of the Variable Account. We keep the assets
physically segregated and separate and apart from our general corporate assets.
We maintain records of all purchases and redemptions of the Fund shares held by
each of the Variable Sub-Accounts.
The Funds do not issue stock certificates. Therefore, we hold the Variable
Account's assets in open account in lieu of stock certificates. See the Funds'
prospectuses for a more complete description of the custodian of the Funds.
PREMIUM TAXES
Applicable premium tax rates depend on the Contract owner's state of residency
and the insurance laws and our status in those states where premium taxes are
incurred. Premium tax rates may be changed by legislation, administrative
interpretations, or judicial acts. The State of New York currently does not
impose a premium tax.
TAX RESERVES
We do not establish capital gains tax reserves for any Variable Sub-Account nor
do we deduct charges for tax reserves because we believe that capital gains
attributable to the Variable Account will not be taxable. However, we reserve
the right to deduct charges to establish tax reserves for potential taxes on
realized or unrealized capital gains.
<PAGE>
FEDERAL TAX MATTERS
- ------------------------------------------------------------------------------
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE
NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION
INVOLVING A CONTRACT.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on the individual circumstances
of each person. If you are concerned about any tax consequences with regard to
your individual circumstances, you should consult a competent tax adviser.
TAXATION OF ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
Allstate Life Insurance Company of New York ("Allstate New York") is taxed as a
life insurance company under Part I of Subchapter L of the Internal Revenue
Code. Since the Variable Account is not an entity separate from Allstate New
York, and its operations form a part of Allstate New York, it will not be taxed
separately as a "Regulated Investment Company" under Subchapter M of the Code.
Investment income and realized capital gains of the Variable Account are
automatically applied to increase reserves under the contract. Under existing
federal income tax law, Allstate New York believes that the Variable Account
investment income and capital gains will not be taxed to the extent that such
income and gains are applied to increase the reserves under the contract.
Accordingly, Allstate New York does not anticipate that it will incur any
federal income tax liability attributable to the Variable Account, and therefore
Allstate New York does not intend to make provisions for any such taxes. If
Allstate New York is taxed on investment income or capital gains of the Variable
Account, then Allstate New York may impose a charge against the Variable Account
in order to make provision for such taxes.
EXCEPTIONS TO THE NON-NATURAL OWNER RULE
There are several exceptions to the general rule that annuity contracts held by
a non-natural owner are not treated as annuity contracts for federal income tax
purposes. Contracts will generally be treated as held by a natural person if the
nominal owner is a trust or other entity which holds the Contract as agent for a
natural person. However, this special exception will not apply in the case of an
employer who is the nominal owner of an annuity contract under a non-qualified
deferred compensation arrangement for its employees. Other exceptions to the
non-natural owner rule are: (1) contracts acquired by an estate of a decedent by
reason of the death of the decedent; (2) certain qualified contracts; (3)
contracts purchased by employers upon the termination of certain qualified
plans; (4) certain contracts used in connection with structured settlement
agreements, and (5) contracts purchased with a single premium when the annuity
starting date is no later than a year from purchase of the annuity and
substantially equal periodic payments are made, not less frequently than
annually, during the annuity period.
IRS REQUIRED DISTRIBUTION AT DEATH RULES
In order to be considered an annuity contract for federal income tax purposes,
an annuity contract must provide: (1) if any owner dies on or after the annuity
start date but before the entire interest in the contract has been distributed,
the remaining portion of such interest must be distributed at least as rapidly
as under the method of distribution being used as of the date of the owner's
death; (2) if any owner dies prior to the annuity start date, the entire
interest in the contract will be distributed within five years after the date of
the owner's death. These requirements are satisfied if any portion of the
owner's interest which is payable to (or for the benefit of) a designated
beneficiary is distributed over the life of such beneficiary (or over a period
not extending beyond the life expectancy of the beneficiary) and the
distributions begin within one year of the owner's death. If the owner's
designated beneficiary is the surviving spouse of the owner, the contract may be
continued with the surviving spouse as the new owner. If the owner of the
contract is a non-natural person, then the annuitant will be treated as the
owner for purposes of applying the distribution at death rules. In addition, a
change in the annuitant on a contract owned by a non-natural person will be
treated as the death of the owner.
QUALIFIED PLANS
The Contract may be used with several types of qualified plans. The income on
qualified plan and IRA investments is tax deferred and variable annuities held
by such plans do not receive any additional tax deferral. You should review the
annuity features, including all benefits and expenses, prior to purchasing a
variable annuity in a qualified plan or IRA. Allstate New York reserves the
right to limit the availability of the Contract for use with any of the
Qualified Plans listed below. The tax rules applicable to participants in such
qualified plans vary according to the type of plan and the terms and conditions
of the plan itself. Adverse tax consequences may result from excess
contributions, premature distributions, distributions that do not conform to
specified commencement and minimum distribution rules, excess distributions and
in other circumstances. Contract owners and participants under the plan and
annuitants and beneficiaries under the Contract may be subject to the terms and
conditions of the plan regardless of the terms of the Contract.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity (IRA).
Individual Retirement Annuities are subject to limitations on the amount that
can be contributed and on the time when distributions may commence. Certain
distributions from other types of qualified plans may be "rolled over" on a
tax-deferred basis into an Individual Retirement Annuity. An IRA generally may
not provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid and the Contract's Cash Value. The Contract
provides a death benefit that in certain circumstances may exceed the greater of
the payments and the Contract Value. It is possible that the death benefit could
be viewed as violating the prohibition on investment in life insurance contracts
with the result that the Contract would not be viewed as satisfying the
requirements of an IRA.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after the
taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2, made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature distributions.
Subject to certain limitations, a traditional Individual Retirement Account or
Annuity may be converted or "rolled over" to a Roth Individual Retirement
Annuity. The taxable portion of a conversion or rollover distribution is
includible in gross income, but is exempted from the 10% penalty tax on
premature distributions.
SIMPLIFIED EMPLOYEE PENSION PLANS
Section 408(k) of the Code allows employers to establish simplified employee
pension plans for their employees using the employees' individual retirement
annuities if certain criteria are met. Under these plans the employer may,
within specified limits, make deductible contributions on behalf of the
employees to their individual retirement annuities. Employers intending to use
the Contract in connection with such plans should seek competent advice. In
particular, employers should consider that an IRA generally may not provide life
insurance, but it may provide a death benefit that equals the greater of the
premiums paid and the contract's cash value. The Contract provides a death
benefit that in certain circumstances may exceed the greater of the payments and
the Contract Value.
SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS)
Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer
employees to establish SIMPLE retirement plans for their employees. SIMPLE plans
may be structured as a SIMPLE retirement account using an employee's IRA to hold
the assets or as a Section 401(k) qualified cash or deferred arrangement. In
general, a SIMPLE plan consists of a salary deferral program for eligible
employees and matching or nonelective contributions made by employers. Employers
intending to use the Contract in conjunction with SIMPLE plans should seek
competent tax and legal advice.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code permits public school employees and employees of
certain types of tax-exempt organizations (specified in Section 501(c)(3) of the
Code) to have their employers purchase annuity contracts for them, and subject
to certain limitations, to exclude the purchase payments from the employees'
gross income. An annuity contract used for a Section 403(b) plan must provide
that distributions attributable to salary reduction contributions made after
12/31/88, and all earnings on salary reduction contributions, may be made only
on or after the date the employee attains age 59 1/2, separates from service,
dies, becomes disabled or on the account of hardship (earnings on salary
reduction contributions may not be distributed for hardship). These limitations
do not apply to withdrawals where Allstate New York is directed to transfer some
or all of the Contract Value to another 403(b) plan.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to establish
various types of tax favored retirement plans for employees. The Self-Employed
Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R.
10" or "Keogh") permits self-employed individuals to establish tax favored
retirement plans for themselves and their employees. Such retirement plans may
permit the purchase of annuity contracts in order to provide benefits under the
plans.
STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION
DEFERRED COMPENSATION PLANS
Section 457 of the Code permits employees of state and local governments and
tax-exempt organizations to defer a portion of their compensation without paying
current taxes. The employees must be participants in an eligible deferred
compensation plan. To the extent the Contracts are used in connection with an
eligible plan, employees are considered general creditors of the employer and
the employer as owner of the contract has the sole right to the proceeds of the
contract. Generally, under the non-natural owner rules, such Contracts are not
treated as annuity contracts for federal income tax purposes. Under these plans,
contributions made for the benefit of the employees will not be includible in
the employees' gross income until distributed from the plan. However, under a
Section 457 plan all the compensation deferred under the plan must remain solely
the property of the employer, subject only to the claims of the employer's
general creditors, until such time as made available to the employee or a
beneficiary.
EXPERTS
- ------------------------------------------------------------------------------
The financial statements and the related financial statement schedules of
Allstate New York as of December 31, 1999 and 1998 and for each of the three
years in the period ended December 31, 1999 that appear in this Statement of
Additional Information have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report appearing herein, and are included in
reliance upon the report of such firm given upon their authority as experts in
accounting and auditing.
The financial statements of the Variable Account as of December 31, 1999 and for
each of the periods in the two years then ended that appear in this Statement of
Additional Information have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report appearing herein, and are included in
reliance upon the report of such firm given upon their authority as experts in
accounting and auditing.
FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
The financial statements of the Variable Account as of December 31, 1999 and for
each of the periods in the two years then ended, the financial statements and
related financial statement schedules of Allstate New York as of December 31,
1999 and 1998 and for each of the three years in the period ended December 31,
1999 and the accompanying Independent Auditors' Reports appear in the pages that
follow. The financial statements and schedules of Allstate New York included
herein should be considered only as bearing upon the ability of Allstate New
York to meet its obligations under the Contacts.
<PAGE>
THE AIM LIFETIME PLUS(sm) II VARIABLE ANNUITY
<TABLE>
<CAPTION>
<S> <C>
Allstate Life Insurance Company of New York Statement of Additional Information
Allstate Life of New York Separate Account A dated May 1, 2000
One Allstate Drive, Farmingville, New York 11738
Service Center
P.O. Box 94038, Palatine, IL 60094-4038
1 (800) 692-4682
This Statement of Additional Information supplements the information in the
prospectus for the AIM Lifetime Plus(sm) II Variable Annuity. This Statement of
Additional Information is not a prospectus. You should read it with the
prospectus, dated May 1, 2000, for the Contract. You may obtain a prospectus by
calling or writing us at the address or telephone number listed above.
Except as otherwise noted, this Statement of Additional Information uses the
same defined terms as the prospectus.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
TABLE OF CONTENTS
<S> <C>
Description Page
Additions, Deletions or Substitutions of Investments 3
The Contract 3
Purchase of Contracts 4
Tax-free Exchanges (1035 Exchanges, Rollovers and Transfers) 4
Performance Information 5
Calculation of Accumulation Unit Values 10
Calculation of Variable Income Payments 11
General Matters
Incontestability 12
Settlements 12
Safekeeping of the Variable Account's Assets 12
Premium Taxes 12
Tax Reserves 12
Federal Tax Matters 13
Qualified Plans 14
Experts 16
Financial Statements 17
</TABLE>
<PAGE>
ADDITIONS, DELETIONS OR SUBSTITUTIONS OF INVESTMENTS
We may add, delete, or substitute the Fund shares held by any Variable
Sub-Account to the extent the law permits. We may substitute shares of any Fund
with those of another Fund of the same or different mutual fund if the shares of
the Fund are no longer available for investment, or if we believe investment in
any Fund would become inappropriate in view of the purposes of the Variable
Account.
We will not substitute shares attributable to a Contract owner's interest in a
Variable Sub-Account until we have notified the Contract owner of the change,
and until the Securities and Exchange Commission has approved the change, to the
extent such notification and approval are required by law. Nothing contained in
this Statement of Additional Information shall prevent the Variable Account from
purchasing other securities for other series or classes of contracts, or from
effecting a conversion between series or classes of contracts on the basis of
requests made by Contract owners.
We also may establish additional Variable Sub-Accounts or series of Variable
Sub-Accounts. Each additional Variable Sub-Account would purchase shares in a
new Fund of the same or different mutual fund. We may establish new Variable
Sub-Accounts when we believe marketing needs or investment conditions warrant.
We determine the basis on which we will offer any new Variable Sub-Accounts in
conjunction with the Contract to existing Contract owners. We may eliminate one
or more Variable Sub-Accounts if, in our sole discretion, marketing, tax or
investment conditions so warrant.
We may, by appropriate endorsement, change the Contract as we believe necessary
or appropriate to reflect any substitution or change in the Funds. If we believe
the best interests of persons having voting rights under the Contracts would be
served, we may operate the Variable Account as a management company under the
Investment Company Act of 1940 or we may withdraw its registration under such
Act if such registration is no longer required.
<PAGE>
THE CONTRACT
The Contract is primarily designed to aid individuals in long-term financial
planning. You can use it for retirement planning regardless of whether the
retirement plan qualifies for special federal income tax treatment.
PURCHASE OF CONTRACTS
We offer the Contracts to the public through banks as well as brokers licensed
under the federal securities laws and state insurance laws. The principal
underwriter for the Variable Account, ALFS, Inc. ("ALFS"), distributes the
Contracts. ALFS is an affiliate of Allstate New York. The offering of the
Contracts is continuous. We do not anticipate discontinuing the offering of the
Contracts, but we reserve the right to do so at any time.
TAX-FREE EXCHANGES (1035 EXCHANGES, ROLLOVERS AND TRANSFERS)
We accept purchase payments that are the proceeds of a Contract in a transaction
qualifying for a tax-free exchange under Section 1035 of the Internal Revenue
Code ("Code"). Except as required by federal law in calculating the basis of the
Contract, we do not differentiate between Section 1035 purchase payments and
non-Section 1035 purchase payments.
We also accept "rollovers" and transfers from Contracts qualifying as
tax-sheltered annuities ("TSAs"), individual retirement annuities or accounts
("IRAs"), or any other Qualified Contract that is eligible to "rollover" into an
IRA. We differentiate among non-Qualified Contracts, TSAs, IRAs and other
Qualified Contracts to the extent necessary to comply with federal tax laws. For
example, we restrict the assignment, transfer, or pledge of TSAs and IRAs so the
Contracts will continue to qualify for special tax treatment. A Contract owner
contemplating any such exchange, rollover or transfer of a Contract should
contact a competent tax adviser with respect to the potential effects of such a
transaction.
<PAGE>
PERFORMANCE INFORMATION
From time to time we may advertise the "standardized," "non-standardized," and
"adjusted historical" total returns of the Variable Sub-Accounts, as described
below. Please remember that past performance is not an estimate or guarantee of
future performance and does not necessarily represent the actual experience of
amounts invested by a particular Contract owner. Also, please note that the
performance figures shown do not reflect any applicable taxes.
STANDARDIZED TOTAL RETURNS
A Variable Sub-Account's standardized total return represents the average annual
total return of that Sub-Account over a particular period. We compute
standardized total return by finding the annual percentage rate that, when
compounded annually, will accumulate a hypothetical $1,000 purchase payment to
the redeemable value at the end of the one, five or ten year period, or for a
period from the date of commencement of the Variable Sub-Account's operations,
if shorter than any of the foregoing. We use the following formula prescribed by
the SEC for computing standardized total return:
1000(1 + T)n = ERV
where:
T = average annual total return
ERV = ending redeemable value of a hypothetical $1,000
payment made at the beginning of 1, 5, or 10 year
periods or shorter period
n = number of years in the period
1000 = hypothetical $1,000 investment
When factoring in the withdrawal charge assessed upon redemption, we exclude the
Preferred Withdrawal Amount, which is the amount you can withdraw from the
Contract without paying a withdrawal charge. We also use the withdrawal charge
that would apply upon redemption at the end of each period. Thus, for example,
when factoring in the withdrawal charge for a one year standardized total return
calculation, we would use the withdrawal charge that applies to a withdrawal of
a purchase payment made one year prior.
When factoring in the contract maintenance charge, we pro rate the charge by
dividing (i) the contract maintenance charges by (ii) an assumed average
Contract size of $50,000. We then multiply the resulting percentage by a
hypothetical $1,000 investment.
The standardized total returns for the Variable Sub-Accounts for the periods
ended December 31, 1999 are set out below. The AIM Lifetime Plus(SM) II Variable
Annuity Contracts were first offered to the public on January 17, 2000.
Accordingly, performance figures for the Variable Sub-Accounts prior to that
date reflect the historical performance of the Variable Sub-Accounts, adjusted
to reflect the current level of charges that apply to the Variable Sub-Accounts
under the Contracts, including the withdrawal charge and contract maintenance
charge described above. No standardized total returns are shown for the AIM V.I.
Money Market Variable Sub-Account. In addition, no standardized total returns
are shown for the AIM V.I. Blue Chip, AIM V.I. Dent Demographic Trends, AIM V.I.
Global Growth and Income, and AIM V.I. Telecommunications and Technology
Variable Sub-Accounts, which commenced operations on January 3, 2000.
The inception dates of the Variable Sub-Accounts are as follows:
<TABLE>
<CAPTION>
<S> <C>
AIM V.I. Aggressive Growth October 25, 1999
AIM V.I. Balanced October 25, 1999
AIM V.I. Blue Chip January 3, 2000
AIM V.I. Capital Appreciation October 14, 1996
AIM V.I. Capital Development October 25, 1999
AIM V.I. Dent Demographic Trends January 3, 2000
AIM V.I. Diversified Income October 14, 1996
AIM V.I. Global Growth and Income January 3, 2000
AIM V.I. Global Utilities October 14, 1996
AIM V.I. Government Securities October 14, 1996
AIM V.I. Growth October 14, 1996
AIM V.I. Growth and Income October 14, 1996
AIM V.I. High Yield October 25, 1999
AIM V.I. International Equity October 14, 1996
AIM V.I. Telecommunications and Technology January 3, 2000
AIM V.I. Value October 14, 1996
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
(WITHOUT THE ENHANCED DEATH BENEFIT OPTION)
Variable Sub-Account One Year Five Years Since Inception
<S> <C> <C> <C>
AIM V.I. Aggressive Growth N/A N/A 20.12%*
AIM V.I. Balanced N/A N/A 7.39%*
AIM V.I. Capital Appreciation 34.47% N/A 19.23%
AIM V.I. Capital Development N/A N/A 20.60%*
AIM V.I. Diversified Income -3.05% N/A 0.12%
AIM V.I. Global Utilities 24.19% N/A 21.03%
AIM V.I. Government Securities -2.45% N/A 2.67%
AIM V.I. Growth 25.75% N/A 24.81%
AIM V.I. Growth and Income 24.83% N/A 25.14%
AIM V.I. High Yield N/A N/A -0.80%*
AIM V.I. International Equity 44.18% N/A 21.50%
AIM V.I. Value 20.78% N/A 23.84%
(WITH THE ENHANCED DEATH BENEFIT OPTION)
Variable Sub-Account One Year Five Years Since Inception
AIM V.I. Aggressive Growth N/A N/A 20.08%*
AIM V.I. Balanced N/A N/A 7.35%*
AIM V.I. Capital Appreciation 34.20% N/A 19.00%
AIM V.I. Capital Development N/A N/A 20.55%*
AIM V.I. Diversified Income -3.24% N/A -0.08%
AIM V.I. Global Utilities 23.94% N/A 20.79%
AIM V.I. Government Securities -2.65% N/A 2.46%
AIM V.I. Growth 25.49% N/A 24.56%
AIM V.I. Growth and Income 24.58% N/A 24.89%
AIM V.I. High Yield N/A N/A -0.84%*
AIM V.I. International Equity 43.89% N/A 21.26%
AIM V.I. Value 20.54% N/A 23.59%
</TABLE>
*Standardized total returns for the AIM V.I. Aggressive Growth, AIM V.I.
Balanced, AIM V.I. Capital Development, and AIM V.I. High
Yield Variable Sub-Accounts are not annualized.
<PAGE>
NON-STANDARDIZED TOTAL RETURNS
From time to time, we also may quote rates of return that reflect changes in the
values of each Variable Sub-Account's Accumulation Units. We may quote these
"non-standardized total returns" on an annualized, cumulative, year-by-year, or
other basis. These rates of return take into account asset-based charges, such
as the mortality and expense risk charge and administration charge. However,
these rates of return do not reflect withdrawal charges, contract maintenance
charges, or any taxes. Such charges, if reflected, would reduce the performance
shown.
Annualized returns reflect the rate of return that, when compounded annually,
would equal the cumulative rate of return for the period shown. We compute
annualized returns according to the following formula:
Annualized Return = (1 + r)1/n - 1
where r = cumulative rate of return for the period shown, and
n = number of years in the period.
The method of computing annualized rates of return is similar to that for
computing standardized performance, described above, except that rather than
using a hypothetical $1,000 investment and the ending redeemable value thereof,
we use the changes in value of an Accumulation Unit.
Cumulative rates of return reflect the cumulative change in value of an
Accumulation Unit over the period shown. Year -by-year rates of return reflect
the change in value of an Accumulation Unit during the course of each year
shown. We compute these returns by dividing the Accumulation Unit Value at the
end of each period shown, by the Accumulation Unit Value at the beginning of
that period, and subtracting one. We compute other total returns on a similar
basis.
We may quote non-standardized total returns for 1, 3, 5 and 10 year periods, or
period since inception of the Variable Sub-Account's operations, as well as
other periods, such as year-to-date (prior calendar year end to the day stated
in the advertisement); "year to most recent quarter" (prior calendar year end to
the end of the most recent quarter); "the prior calendar year"; and the "n" most
recent calendar years.
The non-standardized total returns for the Variable Sub-Accounts for the periods
ended December 31, 1999 are set out below. The Contracts were first offered for
sale as of January 17, 2000. Certain of the Variable Sub-Accounts were available
for investment prior to that date. Accordingly, the performance shown reflects
the historical performance of the Variable Sub-Accounts, adjusted to reflect the
current asset-based charges that apply to the Variable Sub-Accounts under the
Contracts (but not the withdrawal charge, contract maintenance charge, or
taxes). No non-standardized total returns are shown for the AIM V.I. Money
Market Variable Sub-Account. In addition, no non-standardized total returns are
shown for the AIM V.I. Blue Chip, AIM V.I. Dent Demographic Trends, AIM V.I.
Global Growth and Income, and AIM V.I. Telecommunications and Technology
Variable Sub-Accounts which commenced operations on January 3, 2000.
<PAGE>
The inception date of each Variable Sub-Account appears under "Standardized
Total Returns," above.
<TABLE>
<CAPTION>
(WITHOUT THE ENHANCED DEATH BENEFIT OPTION)
Variable Sub-Account One Year Five Years Since
Inception
<S> <C> <C> <C>
AIM V.I. Aggressive Growth N/A N/A 27.78%*
AIM V.I. Balanced N/A N/A 14.24%*
AIM V.I. Capital Appreciation 43.03% N/A 20.59%
AIM V.I. Capital Development N/A N/A 28.28%*
AIM V.I. Diversified Income -2.99% N/A 1.27%
AIM V.I. Global Utilities 32.10% N/A 22.40%
AIM V.I. Government Securities -2.40% N/A 3.84%
AIM V.I. Growth 33.76% N/A 26.22%
AIM V.I. Growth and Income 32.78% N/A 26.55%
AIM V.I. High Yield N/A N/A 5.53%*
AIM V.I. International Equity 53.35% N/A 22.88%
AIM V.I. Value 28.48% N/A 25.24%
(WITH THE ENHANCED DEATH BENEFIT OPTION)
Variable Sub-Account One Year Five Years Since
Inception
AIM V.I. Aggressive Growth N/A N/A 27.73%*
AIM V.I. Balanced N/A N/A 14.20%*
AIM V.I. Capital Appreciation 42.75% N/A 20.35%
AIM V.I. Capital Development N/A N/A 28.24%*
AIM V.I. Diversified Income -3.18% N/A 1.07%
AIM V.I. Global Utilities 31.84% N/A 22.16%
AIM V.I. Government Securities -2.59% N/A 3.64%
AIM V.I. Growth 33.49% N/A 25.97%
AIM V.I. Growth and Income 32.52% N/A 26.30%
AIM V.I. High Yield N/A N/A 5.49%*
AIM V.I. International Equity 53.05% N/A 22.64%
AIM V.I. Value 28.22% N/A 24.99%
</TABLE>
*Non-standardized total returns for the AIM V.I. Aggressive Growth, AIM V.I.
Balanced, AIM V.I. Capital Development, and AIM V.I. High Yield Variable
Sub-Accounts are not annualized.
<PAGE>
ADJUSTED HISTORICAL TOTAL RETURNS
We may advertise the total return for periods prior to the date that the
Variable Sub-Accounts commenced operations. We will calculate such "adjusted
historical total returns" using the historical performance of the underlying
Funds and adjusting such performance to reflect the current level of charges
that apply to the Variable Sub-Accounts under the Contract, the contract
maintenance charge and the appropriate withdrawal charge.
The adjusted historical total returns for the Variable Sub-Accounts for the
periods ended December 31, 1999 are set out below. No adjusted historical total
returns are shown for the AIM V.I. Money Market Variable Sub-Account.
The following list provides the inception date for the Fund corresponding to
each of the Variable Sub-Accounts included in the tables.
<TABLE>
<CAPTION>
Inception Date of
Variable Sub-Account Corresponding Fund
<S> <C>
AIM V.I. Aggressive Growth May 1, 1998
AIM V.I. Balanced May 1, 1998
AIM V.I. Blue Chip December 29, 1999
AIM V.I. Capital Appreciation May 5, 1993
AIM V.I. Capital Development May 1, 1998
AIM V.I. Dent Demographic Trends December 29, 1999
AIM V.I. Diversified Income May 5, 1993
AIM V.I. Global Growth and Income February 10, 1993*
AIM V.I. Global Utilities May 2, 1994
AIM V.I. Government Securities May 5, 1993
AIM V.I. Growth May 5, 1993
AIM V.I. Growth and Income May 2, 1994
AIM V.I. High Yield May 1, 1998
AIM V.I. International Equity May 5, 1993
AIM V.I. Telecommunications and Technology October 18, 1993*
AIM V.I. Value Fund May 5, 1993
</TABLE>
*The inception date of the AIM V.I. Global Growth and Income and AIM V.I.
Telecommunications and Technology Funds ("AIM V.I. Funds") is October 15, 1999.
For periods prior to the inception dates of the AIM V.I. Funds, the performance
shown is based on the historical performance of the AIM G.T. Global Growth and
Income and AIM G.T. Telecommunications Funds, adjusted to reflect the current
expenses of the AIM V.I. Funds.
<PAGE>
<TABLE>
<CAPTION>
(WITHOUT THE ENHANCED DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception of
Fund (if less)
<S> <C> <C> <C>
AIM V.I. Aggressive Growth 34.52% N/A 18.46%
AIM V.I. Balanced 10.93% N/A 13.62%
AIM V.I. Blue Chip N/A N/A 0%*
AIM V.I. Capital Appreciation 34.47% 22.83% 20.28%
AIM V.I. Capital Development 20.04% N/A 6.26%
AIM V.I. Dent Demographic Trends N/A N/A 0*
AIM V.I. Diversified Income -3.05% 4.66% 3.54%
AIM V.I. Global Growth and Income -7.16% 11.43% 9.12%
AIM V.I. Global Utilities 24.19% 19.32% 16.27%
AIM V.I. Government Securities -2.45% 4.60% 3.34%
AIM V.I. Growth 25.75% 25.77% 20.12%
AIM V.I. Growth and Income 24.83% 25.74% 22.41%
AIM V.I. High Yield 2.76% N/A -5.60%
AIM V.I. International Equity 44.18% 19.75% 17.19%
AIM V.I. Telecommunications and Technology 92.09% 31.48% 27.89%**
AIM V.I. Value 20.78% 23.94% 20.63%
(WITH THE ENHANCED DEATH BENEFIT OPTION)
10 Years or
Variable Sub-Account One Year Five Years Since Inception of
AIM V.I. Aggressive Growth 34.25% N/A 18.23%
AIM V.I. Balanced 10.70% N/A 13.39%
AIM V.I. Blue Chip N/A N/A 0*
AIM V.I. Capital Appreciation 34.20% 22.59% 20.04%
AIM V.I. Capital Development 19.80% N/A 6.05%
AIM V.I. Dent Demographic Trends N/A N/A 0*
AIM V.I. Diversified Income -3.24% 4.46% 3.34%
AIM V.I. Global Growth and Income -7.35% 11.21% 10.01%
AIM V.I. Global Utilities 23.94% 19.09% 16.03%
AIM V.I. Government Securities -2.65% 4.39% 3.13%
AIM V.I. Growth 25.49% 25.52% 19.88%
AIM V.I. Growth and Income 24.58% 25.49% 22.17%
AIM V.I. High Yield 2.55% N/A -5.79%
AIM V.I. International Equity 43.89% 19.51% 16.96%
AIM V.I. Telecommunications and Technology 91.71% 31.22% 27.64%**
AIM V.I. Value 20.54% 23.69% 20.39%
</TABLE>
*Adjusted historical total returns for the AIM V.I. Blue Chip and AIM V.I. Dent
Demographic Trends Variable Sub-Accounts are not annualized.
**Effective May 1, 2000, the AIM V.I. Telecommunications Fund changed its name
to AIM V.I. Telecommunications and Technology Fund to reflect changes in its
investment policies. Performance shown for this Fund reflects the investment
prolicies of the Fund prior to the change.
<PAGE>
CALCULATION OF ACCUMULATION UNIT VALUES
The value of Accumulation Units will change each Valuation Period according to
the investment performance of the Fund shares purchased by each Variable
Sub-Account and the deduction of certain expenses and charges. A "Valuation
Period" is the period from the end of one Valuation Date and continues to the
end of the next Valuation Date. A Valuation Date ends at the close of regular
trading on the New York Stock Exchange (currently 3:00 p.m. Central Time).
The Accumulation Unit Value of a Variable Sub-Account for any Valuation Period
equals the Accumulation Unit Value as of the immediately preceding Valuation
Period, multiplied by the Net Investment Factor (described below) for that
Sub-Account for the current Valuation Period.
NET INVESTMENT FACTOR
The Net Investment Factor for a Valuation Period is a number representing the
change, since the last Valuation Period, in the value of Sub-account assets per
Accumulation Unit due to investment income, realized or unrealized capital gain
or loss, deductions for taxes, if any, and deductions for the mortality and
expense risk charge and administrative expense charge. We determine the Net
Investment Factor for each Variable Sub-Account for any Valuation Period by
dividing (A) by (B) and subtracting (C) from the result, where:
(A) is the sum of:
(1) the net asset value per share of the Fund underlying the
Variable Sub-Account determined at the end of the current
Valuation Period; plus,
(2) the per share amount of any dividend or capital gain
distributions made by the Fund underlying the Variable
Sub-Account during the current Valuation Period;
(B) is the net asset value per share of the Fund underlying the
Variable Sub-Account determined as of the end of the immediately
preceding Valuation Period; and
(C) is the sum of the annualized mortality and expense risk and
administrative expense charges divided by the number of days in the
current calendar year and then multiplied by the number of calendar
days in the current Valuation Period.
<PAGE>
CALCULATION OF VARIABLE INCOME PAYMENTS
We calculate the amount of the first variable income payment under an Income
Plan by applying the Contract Value allocated to each Variable Sub-Account less
any applicable premium tax charge deducted at the time, to the income payment
tables in the Contract. We divide each such portion of the first variable
annuity income payment by the Variable Sub-Account's then current Annuity Unit
value to determine the number of annuity units ("Annuity Units") upon which
later income payments will be based. To determine income payments after the
first, we simply multiply the number of Annuity Units determined in this manner
for each Variable Sub-Account by the then current Annuity Unit value ("Annuity
Unit Value") for that Variable Sub-Account.
CALCULATION OF ANNUITY UNIT VALUES
Annuity Units in each Variable Sub-Account are valued separately and Annuity
Unit Values will depend upon the investment experience of the particular Fund in
which the Variable Sub-Account invests. We calculate the Annuity Unit Value for
each Variable Sub-Account at the end of any Valuation Period by:
o multiplying the Annuity Unit Value at the end of the immediately
preceding Valuation Period by the Variable Sub-Account's Net Investment
Factor (described in the preceding section) for the Period; and then
o dividing the product by the sum of 1.0 plus the assumed investment rate
for the Valuation Period.
The assumed investment rate adjusts for the interest rate assumed in the income
payment tables used to determine the dollar amount of the first variable income
payment, and is at an effective annual rate which is disclosed in the Contract.
We determine the amount of the first variable income payment paid under an
Income Plan using the income payment tables set out in the Contracts. The
Contracts include tables that differentiate on the basis of sex, except in
states that require the use of unisex tables.
<PAGE>
GENERAL MATTERS
INCONTESTABILITY
We will not contest the Contract after we issue it.
SETTLEMENTS
We may require you to return the Contract to us prior to any settlement. We must
receive due proof of the Contract owner(s) death (or Annuitant's death if there
is a non-natural Contract owner) before we will settle a death claim.
SAFEKEEPING OF THE VARIABLE ACCOUNT'S ASSETS
We hold title to the assets of the Variable Account. We keep the assets
physically segregated and separate and apart from our general corporate assets.
We maintain records of all purchases and redemptions of the Fund shares held by
each of the Variable Sub-Accounts.
The Funds do not issue stock certificates. Therefore, we hold the Variable
Account's assets in open account in lieu of stock certificates. See the Funds'
prospectuses for a more complete description of the custodian of the Funds.
PREMIUM TAXES
Applicable premium tax rates depend on the Contract owner's state of residency
and the insurance laws and our status in those states where premium taxes are
incurred. Premium tax rates may be changed by legislation, administrative
interpretations, or judicial acts. The State of New York currently does not
impose a premium tax.
TAX RESERVES
We do not establish capital gains tax reserves for any Variable Sub-Account nor
do we deduct charges for tax reserves because we believe that capital gains
attributable to the Variable Account will not be taxable. However, we reserve
the right to deduct charges to establish tax reserves for potential taxes on
realized or unrealized capital gains.
<PAGE>
FEDERAL TAX MATTERS
THE FOLLOWING DISCUSSION IS GENERAL AND IS NOT INTENDED AS TAX ADVICE. WE MAKE
NO GUARANTEE REGARDING THE TAX TREATMENT OF ANY CONTRACT OR TRANSACTION
INVOLVING A CONTRACT.
Federal, state, local and other tax consequences of ownership or receipt of
distributions under an annuity contract depend on the individual circumstances
of each person. If you are concerned about any tax consequences with regard to
your individual circumstances, you should consult a competent tax adviser.
TAXATION OF ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
Allstate New York is taxed as a life insurance company under Part I of
Subchapter L of the Internal Revenue Code. Since the Variable Account is not an
entity separate from Allstate New York, and its operations form a part of
Allstate New York, it will not be taxed separately as a "Regulated Investment
Company" under Subchapter M of the Code. Investment income and realized capital
gains of the Variable Account are automatically applied to increase reserves
under the contract. Under existing federal income tax law, Allstate New York
believes that the Variable Account investment income and capital gains will not
be taxed to the extent that such income and gains are applied to increase the
reserves under the contract. Accordingly, Allstate New York does not anticipate
that it will incur any federal income tax liability attributable to the Variable
Account, and therefore Allstate New York does not intend to make provisions for
any such taxes. If Allstate New York is taxed on investment income or capital
gains of the Variable Account, then Allstate New York may impose a charge
against the Variable Account in order to make provision for such taxes.
EXCEPTIONS TO THE NON-NATURAL OWNER RULE
There are several exceptions to the general rule that annuity contracts held by
a non-natural owner are not treated as annuity contracts for federal income tax
purposes. Contracts will generally be treated as held by a natural person if the
nominal owner is a trust or other entity which holds the Contract as agent for a
natural person. However, this special exception will not apply in the case of an
employer who is the nominal owner of an annuity contract under a non-qualified
deferred compensation arrangement for its employees. Other exceptions to the
non-natural owner rule are: (1) contracts acquired by an estate of a decedent by
reason of the death of the decedent; (2) certain qualified contracts; (3)
contracts purchased by employers upon the termination of certain qualified
plans; (4) certain contracts used in connection with structured settlement
agreements, and (5) contracts purchased with a single premium when the annuity
starting date is no later than a year from purchase of the annuity and
substantially equal periodic payments are made, not less frequently than
annually, during the annuity period.
IRS REQUIRED DISTRIBUTION AT DEATH RULES
In order to be considered an annuity contract for federal income tax purposes,
an annuity contract must provide: (1) if any owner dies on or after the annuity
start date but before the entire interest in the contract has been distributed,
the remaining portion of such interest must be distributed at least as rapidly
as under the method of distribution being used as of the date of the owner's
death; (2) if any owner dies prior to the annuity start date, the entire
interest in the contract will be distributed within five years after the date of
the owner's death. These requirements are satisfied if any portion of the
owner's interest which is payable to (or for the benefit of) a designated
beneficiary is distributed over the life of such beneficiary (or over a period
not extending beyond the life expectancy of the beneficiary) and the
distributions begin within one year of the owner's death. If the owner's
designated beneficiary is the surviving spouse of the owner, the contract may be
continued with the surviving spouse as the new owner. If the owner of the
contract is a non-natural person, then the annuitant will be treated as the
owner for purposes of applying the distribution at death rules. In addition, a
change in the annuitant on a contract owned by a non-natural person will be
treated as the death of the owner.
<PAGE>
QUALIFIED PLANS
The Contract may be used with several types of qualified plans. The income on
qualified plan and IRA investments is tax deferred and variable annuities held
by such plans do not receive any additional tax deferral. You should review the
annuity features, including all benefits and expenses, prior to purchasing a
variable annuity in a qualified plan or IRA. Allstate New York reserves the
right to limit the availability of the Contract for use with any of the
Qualified Plans listed below. The tax rules applicable to participants in such
qualified plans vary according to the type of plan and the terms and conditions
of the plan itself. Adverse tax consequences may result from excess
contributions, premature distributions, distributions that do not conform to
specified commencement and minimum distribution rules, excess distributions and
in other circumstances. Contract owners and participants under the plan and
annuitants and beneficiaries under the Contract may be subject to the terms and
conditions of the plan regardless of the terms of the Contract.
INDIVIDUAL RETIREMENT ANNUITIES
Section 408 of the Code permits eligible individuals to contribute to an
individual retirement program known as an Individual Retirement Annuity (IRA).
Individual Retirement Annuities are subject to limitations on the amount that
can be contributed and on the time when distributions may commence. Certain
distributions from other types of qualified plans may be "rolled over" on a
tax-deferred basis into an Individual Retirement Annuity. An IRA generally may
not provide life insurance, but it may provide a death benefit that equals the
greater of the premiums paid and the Contract's Cash Value. The Contract
provides a death benefit that in certain circumstances may exceed the greater of
the payments and the Contract Value. It is possible that the death benefit could
be viewed as violating the prohibition on investment in life insurance contracts
with the result that the Contract would not be viewed as satisfying the
requirements of an IRA.
ROTH INDIVIDUAL RETIREMENT ANNUITIES
Section 408A of the Code permits eligible individuals to make nondeductible
contributions to an individual retirement program known as a Roth Individual
Retirement Annuity. Roth Individual Retirement Annuities are subject to
limitations on the amount that can be contributed and on the time when
distributions may commence. "Qualified distributions" from Roth Individual
Retirement Annuities are not includible in gross income. "Qualified
distributions" are any distributions made more than five taxable years after the
taxable year of the first contribution to the Roth Individual Retirement
Annuity, and which are made on or after the date the individual attains age 59
1/2, made to a beneficiary after the owner's death, attributable to the owner
being disabled or for a first time home purchase (first time home purchases are
subject to a lifetime limit of $10,000). "Nonqualified distributions" are
treated as made from contributions first and are includible in gross income to
the extent such distributions exceed the contributions made to the Roth
Individual Retirement Annuity. The taxable portion of a "nonqualified
distribution" may be subject to the 10% penalty tax on premature distributions.
Subject to certain limitations, a traditional Individual Retirement Account or
Annuity may be converted or "rolled over" to a Roth Individual Retirement
Annuity. The taxable portion of a conversion or rollover distribution is
includible in gross income, but is exempted from the 10% penalty tax on
premature distributions.
SIMPLIFIED EMPLOYEE PENSION PLANS
Section 408(k) of the Code allows employers to establish simplified employee
pension plans for their employees using the employees' individual retirement
annuities if certain criteria are met. Under these plans the employer may,
within specified limits, make deductible contributions on behalf of the
employees to their individual retirement annuities. Employers intending to use
the Contract in connection with such plans should seek competent advice. In
particular, employers should consider that an IRA generally may not provide life
insurance, but it may provide a death benefit that equals the greater of the
premiums paid and the contract's cash value. The Contract provides a death
benefit that in certain circumstances may exceed the greater of the payments and
the Contract Value.
SAVINGS INCENTIVE MATCH PLANS FOR EMPLOYEES (SIMPLE PLANS)
Sections 408(p) and 401(k) of the Code allow employers with 100 or fewer
employees to establish SIMPLE retirement plans for their employees. SIMPLE plans
may be structured as a SIMPLE retirement account using an employee's IRA to hold
the assets or as a Section 401(k) qualified cash or deferred arrangement. In
general, a SIMPLE plan consists of a salary deferral program for eligible
employees and matching or nonelective contributions made by employers. Employers
intending to use the Contract in conjunction with SIMPLE plans should seek
competent tax and legal advice.
TAX SHELTERED ANNUITIES
Section 403(b) of the Code permits public school employees and employees of
certain types of tax-exempt organizations (specified in Section 501(c)(3) of the
Code) to have their employers purchase annuity contracts for them, and subject
to certain limitations, to exclude the purchase payments from the employees'
gross income. An annuity contract used for a Section 403(b) plan must provide
that distributions attributable to salary reduction contributions made after
12/31/88, and all earnings on salary reduction contributions, may be made only
on or after the date the employee attains age 59 1/2, separates from service,
dies, becomes disabled or on the account of hardship (earnings on salary
reduction contributions may not be distributed for hardship). These limitations
do not apply to withdrawals where Allstate New York is directed to transfer some
or all of the Contract Value to another 403(b) plan.
CORPORATE AND SELF-EMPLOYED PENSION AND PROFIT SHARING PLANS
Sections 401(a) and 403(a) of the Code permit corporate employers to establish
various types of tax favored retirement plans for employees. The Self-Employed
Individuals Retirement Act of 1962, as amended, (commonly referred to as "H.R.
10" or "Keogh") permits self-employed individuals to establish tax favored
retirement plans for themselves and their employees. Such retirement plans may
permit the purchase of annuity contracts in order to provide benefits under the
plans.
STATE AND LOCAL GOVERNMENT AND TAX-EXEMPT ORGANIZATION
DEFERRED COMPENSATION PLANS
Section 457 of the Code permits employees of state and local governments and
tax-exempt organizations to defer a portion of their compensation without paying
current taxes. The employees must be participants in an eligible deferred
compensation plan. To the extent the Contracts are used in connection with an
eligible plan, employees are considered general creditors of the employer and
the employer as owner of the contract has the sole right to the proceeds of the
contract. Generally, under the non-natural owner rules, such Contracts are not
treated as annuity contracts for federal income tax purposes. Under these plans,
contributions made for the benefit of the employees will not be includible in
the employees' gross income until distributed from the plan. However, under a
Section 457 plan all the compensation deferred under the plan must remain solely
the property of the employer, subject only to the claims of the employer's
general creditors, until such time as made available to the employee or a
beneficiary.
<PAGE>
EXPERTS
The financial statements and the related financial statement schedules of
Allstate New York as of December 31, 1999 and 1998 and for each of the three
years in the period ended December 31, 1999 that appear in this Statement of
Additional Information have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report appearing herein, and are included in
reliance upon the report of such firm given upon their authority as experts in
accounting and auditing.
The financial statements of the Variable Account as of December 31, 1999 and for
each of the periods in the two years then ended that appear in this Statement of
Additional Information have been audited by Deloitte & Touche LLP, independent
auditors, as stated in their report appearing herein, and are included in
reliance upon the report of such firm given upon their authority as experts in
accounting and auditing.
<PAGE>
FINANCIAL STATEMENTS
The financial statements of the Variable Account as of December 31, 1999 and for
each of the periods in the two years then ended, the financial statements and
related financial statement schedules of Allstate New York as of December 31,
1999 and 1998 and for each of the three years in the period ended December 31,
1999 and the accompanying Independent Auditors' Reports appear in the pages that
follow. The financial statements and schedules of Allstate New York included
herein should be considered only as bearing upon the ability of Allstate New
York to meet its obligations under the Contacts.
<PAGE>
INDEPENDENT AUDITORS' REPORT
TO THE BOARD OF DIRECTORS AND SHAREHOLDER OF
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK:
We have audited the accompanying Statements of Financial Position of Allstate
Life Insurance Company of New York (the "Company", an affiliate of The Allstate
Corporation) as of December 31, 1999 and 1998, and the related Statements of
Operations and Comprehensive Income, Shareholder's Equity and Cash Flows for
each of the three years in the period ended December 31, 1999. Our audits also
included Schedule IV - Reinsurance and Schedule V - Valuation and Qualifying
Accounts. These financial statements and financial statement schedules are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and financial statement schedules based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of the Company as of December 31, 1999 and
1998, and the results of its operations and its cash flows for each of the three
years in the period ended December 31, 1999 in conformity with generally
accepted accounting principles. Also, in our opinion, Schedule IV - Reinsurance,
and Schedule V - Valuation and Qualifying Accounts, when considered in relation
to the basic financial statements taken as a whole, present fairly, in all
material respects, the information set forth therein.
/s/ Deloitte & Touche LLP
Chicago, Illinois
February 25, 2000
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------------------------
1999 1998
------------------ -------------------
<S> <C> <C>
($ in thousands, except par value data)
ASSETS
Investments
Fixed income securities, at fair value
(amortized cost $1,858,216 and $1,648,972) $ 1,912,545 $ 1,966,067
Mortgage loans 166,997 145,095
Short-term 46,037 76,127
Policy loans 31,109 29,620
----------------- ------------------
Total investments 2,156,688 2,216,909
Cash 1,135 3,117
Deferred policy acquisition costs 106,932 87,830
Accrued investment income 25,712 22,685
Reinsurance recoverables 1,949 2,210
Other assets 7,803 9,887
Separate Accounts 443,705 366,247
----------------- ------------------
TOTAL ASSETS $ 2,743,924 $ 2,708,885
================= ==================
LIABILITIES
Reserve for life-contingent contract benefits $ 1,098,016 $ 1,208,104
Contractholder funds 839,157 703,264
Current income taxes payable 10,132 14,029
Deferred income taxes 3,077 25,449
Other liabilities and accrued expenses 41,218 23,463
Payable to affiliates, net 4,731 38,835
Separate Accounts 443,705 366,247
----------------- ------------------
TOTAL LIABILITIES 2,440,036 2,379,391
----------------- ------------------
COMMITMENTS AND CONTINGENT LIABILITIES (NOTE 13)
SHAREHOLDER'S EQUITY
Common stock, $25 par value, 100,000 and 80,000
shares authorized, issued and outstanding 2,500 2,000
Additional capital paid-in 45,787 45,787
Retained income 225,367 198,801
Accumulated other comprehensive income:
Unrealized net capital gains 30,234 82,906
----------------- ------------------
TOTAL ACCUMULATED OTHER COMPREHENSIVE INCOME 30,234 82,906
----------------- ------------------
TOTAL SHAREHOLDER'S EQUITY 303,888 329,494
----------------- ------------------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $ 2,743,924 $ 2,708,885
================= ==================
</TABLE>
See notes to financial statements.
2
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
($ in thousands) 1999 1998 1997
------------------ ------------------ ------------------
<S> <C> <C> <C>
REVENUES
Premiums (net of reinsurance ceded
of $4,253, $3,204 and $3,087 ) $ 63,748 $ 85,771 $ 90,366
Contract charges 38,626 33,281 28,597
Net investment income 148,331 134,413 124,887
Realized capital gains and losses (2,096) 4,697 701
--------- --------- --------
248,609 258,162 244,551
--------- --------- --------
COSTS AND EXPENSES
Contract benefits (net of reinsurance recoveries
of $1,166, $997 and $1,985 ) 178,267 183,839 179,872
Amortization of deferred policy acquisition costs 8,985 7,029 5,023
Operating costs and expenses 20,151 24,703 23,644
--------- --------- --------
207,403 215,571 208,539
--------- --------- --------
INCOME FROM OPERATIONS
BEFORE INCOME TAX EXPENSE 41,206 42,591 36,012
Income tax expense 14,640 14,934 13,296
--------- --------- --------
NET INCOME 26,566 27,657 22,716
--------- --------- --------
OTHER COMPREHENSIVE (LOSS) INCOME, AFTER TAX
Change in unrealized net capital gains and losses (52,672) 18,427 27,627
--------- -------- --------
COMPREHENSIVE (LOSS) INCOME $ (26,106) $ 46,084 $ 50,343
========= ======== ========
</TABLE>
See notes to financial statements.
3
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF SHAREHOLDER'S EQUITY
<TABLE>
<CAPTION>
DECEMBER 31,
------------------------------------------------------------
1999 1998 1997
------------------ ------------------- -----------------
($ in thousands)
COMMON STOCK
<S> <C> <C> <C>
Balance, beginning of year $ 2,000 $ 2,000 $ 2,000
Issuance of new shares of stock 500 - -
----------------- ----------------- -----------------
Balance, end of year 2,500 2,000 2,000
----------------- ----------------- -----------------
ADDITIONAL CAPITAL PAID-IN $ 45,787 $ 45,787 $ 45,787
----------------- ----------------- -----------------
RETAINED INCOME
Balance, beginning of year $ 198,801 $ 171,144 $ 148,428
Net income 26,566 27,657 22,716
----------------- ----------------- -----------------
Balance, end of year 225,367 198,801 171,144
----------------- ----------------- -----------------
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance, beginning of year $ 82,906 $ 64,479 $ 36,852
Change in unrealized net capital gains
and losses (52,672) 18,427 27,627
----------------- ----------------- -----------------
Balance, end of year 30,234 82,906 64,479
----------------- ----------------- -----------------
TOTAL SHAREHOLDER'S EQUITY $ 303,888 $ 329,494 $ 283,410
================= ================= =================
</TABLE>
See notes to financial statements.
4
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
------------------------------------------------------------
($ in thousands) 1999 1998 1997
------------------ ------------------- -----------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 26,566 $ 27,657 $ 22,716
Adjustments to reconcile net income to net cash
provided by operating activities
Amortization and other non-cash items (37,619) (34,890) (31,112)
Realized capital gains and losses 2,096 (4,697) (701)
Interest credited to contractholder funds 36,736 41,200 31,667
Changes in:
Life-contingent contract benefits and
contractholder funds 38,527 53,343 68,114
Deferred policy acquisition costs (17,262) (16,693) (10,781)
Income taxes payable 2,094 13,865 (158)
Other operating assets and liabilities 13,049 (15,974) 8,545
----------------- ----------------- -----------------
Net cash provided by operating activities 64,187 63,811 88,290
----------------- ----------------- -----------------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sales of fixed income securities 161,443 65,281 15,723
Investment collections
Fixed income securities 21,822 159,648 120,061
Mortgage loans 7,479 5,855 5,365
Investments purchases
Fixed income securities (383,961) (292,444) (236,984)
Mortgage loans (31,888) (24,252) (35,200)
Change in short-term investments, net 29,493 (55,846) 16,342
Change in policy loans, net (1,489) (2,020) (2,241)
----------------- ----------------- -----------------
Net cash used in investing activities (197,101) (143,778) (116,934)
----------------- ----------------- -----------------
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock 500 - -
Contractholder fund deposits 197,439 137,473 79,384
Contractholder fund withdrawals (67,007) (54,782) (51,374)
----------------- ----------------- -----------------
Net cash provided by financing activities 130,932 82,691 28,010
----------------- ----------------- -----------------
NET (DECREASE) INCREASE IN CASH (1,982) 2,724 (634)
CASH AT THE BEGINNING OF YEAR 3,117 393 1,027
----------------- ----------------- -----------------
CASH AT END OF YEAR $ 1,135 $ 3,117 $ 393
================= ================= =================
</TABLE>
See notes to financial statements.
5
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
1. GENERAL
BASIS OF PRESENTATION
The accompanying financial statements include the accounts of Allstate Life
Insurance Company of New York (the "Company"), a wholly owned subsidiary of
Allstate Life Insurance Company ("ALIC"), which is wholly owned by Allstate
Insurance Company ("AIC"), a wholly owned subsidiary of The Allstate Corporation
(the "Corporation"). These financial statements have been prepared in conformity
with generally accepted accounting principles.
To conform with the 1999 presentation, certain amounts in the prior years'
financial statements and notes have been reclassified.
NATURE OF OPERATIONS
The Company markets a broad line of life insurance and savings products in the
state of New York through a combination of exclusive agencies, securities firms,
banks, specialized brokers and through direct response marketing. Life insurance
consists of traditional products, including term and whole life,
interest-sensitive life and immediate annuities with life contingencies. Savings
products include deferred annuities and immediate annuities without life
contingencies. Deferred annuities include fixed rate, market value adjusted and
variable annuities. Group pension savings products include immediate annuities
also referred to as retirement annuities. In 1999, annuity premiums and deposits
represented 76.2% of the Company's total statutory premiums and deposits.
The Company monitors economic and regulatory developments which have the
potential to impact its business. Recently enacted federal legislation will
allow for banks and other financial organizations to have greater participation
in the securities and insurance businesses. This legislation may present an
increased level of competition for sales of the Company's products. Furthermore,
the market for deferred annuities and interest-sensitive life insurance is
enhanced by the tax incentives available under current law. Any legislative
changes which lessen these incentives are likely to negatively impact the demand
for these products.
Additionally, traditional demutualizations of mutual insurance companies and
enacted and pending state legislation to permit mutual insurance companies to
convert to a hybrid structure known as a mutual holding company could have a
number of significant effects on the Company by (1) increasing industry
competition through consolidation caused by mergers and acquisitions related to
the new corporate form of business; and (2) increasing competition in capital
markets.
Although the Company currently benefits from agreements with financial services
entities who market and distribute its products, change in control of these
non-affliliated entities with which the Company has alliances could negatively
impact the Company's sales.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS
Fixed income securities include bonds and mortgage-backed and asset-backed
securities. All fixed income securities are carried at fair value and may be
sold prior to their contractual maturity ("available for sale"). The difference
between amortized cost and fair value, net of deferred income taxes, certain
deferred policy acquisition costs, and certain reserves for life-contingent
contract benefits, is reflected as a component of shareholder's equity.
Provisions are recognized for declines in the value of fixed income securities
that are other than temporary. Such writedowns are included in realized capital
gains and losses.
6
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
Mortgage loans are carried at outstanding principal balance, net of unamortized
premium or discount and valuation allowances. Valuation allowances are
established for impaired loans when it is probable that contractual principal
and interest will not be collected. Valuation allowances for impaired loans
reduce the carrying value to the fair value of the collateral or the present
value of the loan's expected future repayment cash flows discounted at the
loan's original effective interest rate. Valuation allowances on loans not
considered to be impaired are established based on consideration of the
underlying collateral, borrower financial strength, current and expected market
conditions, and other factors.
Short-term investments are carried at cost or amortized cost which approximates
fair value, and includes collateral received in connection with securities
lending activities. Policy loans are carried at the unpaid principal balances.
Investment income consists primarily of interest and short-term investment
dividends. Interest is recognized on an accrual basis and dividends are recorded
at the ex-dividend date. Interest income on mortgage-backed and asset-backed
securities is determined on the effective yield method, based on estimated
principal repayments. Accrual of income is suspended for fixed income securities
and mortgage loans that are in default or when the receipt of interest payments
is in doubt. Realized capital gains and losses are determined on a specific
identification basis.
DERIVATIVE FINANCIAL INSTRUMENTS
The Company utilizes financial futures contracts which are derivative financial
instruments. By meeting specific criteria these futures are designated as
accounting hedges and accounted for on a deferral basis. In order to qualify as
accounting hedges, financial futures contracts must reduce the primary market
risk exposure on an enterprise or transaction basis in conjunction with a hedge
strategy; be designated as a hedge at the inception of the transaction; and be
highly correlated with the fair value of, or interest income or expense
associated with, the hedged item at inception and throughout the hedge period.
Derivatives that are not designated as accounting hedges are accounted for on a
fair value basis.
If, subsequent to entering into a hedge transaction, the financial futures
contract becomes ineffective (including if the occurrence of a hedged
anticipatory transaction is no longer probable), the Company terminates the
derivative position. Gains and losses on these terminations are reported in
realized capital gains and losses in the period they occur. The Company may also
terminate derivatives as a result of other events or circumstances. Gains and
losses on these terminations are deferred and amortized over the remaining life
of the hedged item.
The Company accounts for financial futures as hedges using deferral accounting
for anticipatory investment purchases and sales when the criteria for futures
(discussed above) are met. In addition, anticipated transactions must be
probable of occurrence and their significant terms and characteristics
identified. Under deferral accounting, gains and losses on financial futures
contracts are deferred as other liabilities and accrued expenses. Once the
anticipated transaction occurs, the deferred gains and losses are considered
part of the cost basis of the asset and reported net of tax in shareholder's
equity. The gains and losses deferred are then recognized in conjunction with
the earnings on the hedged item. Fees and commissions paid on these derivatives
are also deferred as an adjustment to the carrying value of the hedged item.
RECOGNITION OF INSURANCE REVENUE AND RELATED BENEFITS AND INTEREST CREDITED
Traditional life insurance products consist principally of products with fixed
and guaranteed premiums and benefits, primarily term and whole life insurance
products and certain annuities with life contingencies. Premiums from these
products are recognized as revenue when due. Benefits are recognized in relation
to
7
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
such revenue so as to result in the recognition of profits over the life of
the policy and are reflected in contract benefits.
Interest-sensitive life contracts are insurance contracts whose terms are not
fixed and guaranteed. The terms that may be changed include premiums paid by the
contractholder, interest credited to the contractholder account balance and one
or more amounts assessed against the contractholder. Premiums from these
contracts are reported as deposits to the contractholder funds. Contract charge
revenue consists of fees assessed against the contractholder account balance for
cost of insurance (mortality risk), contract administration and surrender
charges. Contract benefits include interest credited to contracts and claims
incurred in excess of the related contractholder account balance.
Limited payment contracts, a type of life-contingent immediate annuity or
traditional life product, are contracts that provide insurance protection over a
contract period that extends beyond the period in which premiums are collected.
Gross premiums in excess of the net premium on limited payment contracts are
deferred and recognized over the contract period. Contract benefits are
recognized in relation to such revenue so as to result in the recognition of
profits over the life of the policy.
Contracts that do not subject the Company to significant risks arising from
mortality or morbidity are referred to as investment contracts. Fixed rate
annuities, market value adjusted annuities and immediate annuities without life
contingencies are considered investment contracts. Deposits received for such
contracts are reported as deposits to contractholder funds. Contract charge
revenue for investment contracts consists of charges assessed against the
contractholder account balance for contract administration and surrenders.
Contract benefits include interest credited and claims incurred in excess of the
related contractholder account balance.
Crediting rates for fixed rate annuities and interest-sensitive life contracts
are adjusted periodically by the Company to reflect current market conditions.
Investment contracts also include variable annuity contracts which are sold as
Separate Accounts products. The assets supporting these products are legally
segregated and available only to settle Separate Accounts contract obligations.
Deposits received are reported as Separate Accounts liabilities. The Company's
contract charge revenue for these contracts consists of charges assessed against
the Separate Accounts fund balances for contract maintenance, administration,
mortality, expense and surrenders.
DEFERRED POLICY ACQUISITION COSTS
Certain costs which vary with and are primarily related to acquiring life and
savings business, principally agents and brokers remuneration, premium taxes,
certain underwriting costs and direct mail solicitation expenses, are deferred
and amortized into income. Deferred policy acquisition costs are periodically
reviewed as to recoverability and written down where necessary.
For traditional life insurance and limited payment contracts, these costs are
amortized in proportion to the estimated revenue on such business. Assumptions
relating to estimated revenue, as well as to all other aspects of the deferred
acquisition costs and reserve calculations, are determined based upon conditions
as of the date of the policy issue and are generally not revised during the life
of the policy. Any deviations from projected business inforce, resulting from
actual policy terminations differing from expected levels, and any estimated
premium deficiencies change the rate of amortization in the period such events
occur. Generally, the amortization period for these contracts approximates the
estimated lives of the policies.
For interest-sensitive life and investment contracts, the costs are amortized in
proportion to the estimated gross profits on such business over the estimated
lives of the contract periods. Gross profits are determined
8
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
at the date of policy issue and comprise estimated investment, mortality,
expense margins and surrender charges. Assumptions underlying the gross profits
are periodically updated to reflect actual experience, and changes in the amount
or timing of estimated gross profits will result in adjustments to the
cumulative amortization of these costs.
The present value of future profits inherent in acquired blocks of insurance is
classified as a component of deferred policy acquisition costs. The present
value of future profits is amortized over the life of the blocks of insurance
using current crediting rates.
To the extent unrealized gains or losses on securities carried at fair value
would result in an adjustment of estimated gross profits had those gains or
losses actually been realized, the related carrying value of deferred
acquisition costs, including present value of future profits, are adjusted
together with accumulated unrealized net capital gains included in shareholder's
equity.
REINSURANCE RECOVERABLE
In the normal course of business, the Company seeks to limit aggregate and
single exposure to losses on large risks by purchasing reinsurance from other
insurers. Reinsurance recoverables are estimated based upon assumptions
consistent with those used in establishing the underlying reinsured contacts.
Insurance liabilities are reported gross of reinsurance recoverables.
Reinsurance does not extinguish the Company's primary liability under the
policies written and therefore reinsurers and amounts recoverable therefrom are
regularly evaluated by the Company and allowances for uncollectible reinsurance
are established as appropriate.
INCOME TAXES
The income tax provision is calculated under the liability method. Deferred tax
assets and liabilities are recorded based on the difference between the
financial statement and tax bases of assets and liabilities at the enacted tax
rates. The principal assets and liabilities giving rise to such differences are
insurance reserves and deferred policy acquisition costs. Deferred income taxes
also arise from unrealized capital gains and losses on fixed income securities
carried at fair value.
SEPARATE ACCOUNTS
The Company issues deferred variable annuity contracts, the assets and
liabilities of which are legally segregated and recorded as assets and
liabilities of the Separate Accounts. Absent any contract provisions wherein the
Company contractually guarantees either a minimum return or account value to the
beneficiaries of the contractholders in the form of a death benefit, the
contractholders bear the investment risk that the Separate Accounts' funds may
not meet their stated investment objectives.
The assets of the Separate Accounts are carried at fair value. Separate Accounts
liabilities represent the contractholders' claims to the related assets and are
carried at the fair value of the assets. In the event that the asset value of
certain contractholder accounts are projected to be below the value guaranteed
by the Company, a liability is established through a charge to earnings.
Investment income and realized capital gains and losses of the Separate Accounts
accrue directly to the contractholders and therefore, are not included in the
Company's statements of operations and comprehensive income. Revenues to the
Company from the Separate Accounts consist of contract maintenance and
administration fees, and mortality, surrender and expense charges.
RESERVES FOR LIFE-CONTINGENT CONTRACT BENEFITS
The reserve for life-contingent contract benefits, which relates to traditional
life insurance, group retirement annuities, immediate annuities with life
contingencies and certain variable annuity guarantees, is computed on the basis
of assumptions as to mortality, future investment yields, terminations and
9
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
expenses at the time the policy is issued. These assumptions, which for
traditional life insurance are applied using the net level premium method,
include provisions for adverse deviation and generally vary by such
characteristics as type of coverage, year of issue and policy duration. Detailed
reserve assumptions and reserve interest rates are outlined in Note 7. To the
extent that unrealized gains on fixed income securities would result in a
premium deficiency had those gains actually been realized, the related increase
in reserves is recorded as a reduction of the unrealized gains included in
shareholder's equity.
CONTRACTHOLDER FUNDS
Contractholder funds arise from the issuance of interest-sensitive life and
certain investment contracts. Deposits received are recorded as interest-bearing
liabilities. Contractholder funds are equal to deposits received, net of
commissions, and interest credited to the benefit of the contractholder less
withdrawals, mortality charges and administrative expenses. Detailed information
on crediting rates and surrender and withdrawal protection on contractholder
funds are outlined in Note 7.
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
Commitments to extend mortgage loans have only off-balance-sheet risk because
their contractual amounts are not recorded in the Company's statements of
financial position. The contractual amounts and fair values of these instruments
are presented in Note 5.
USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
NEW ACCOUNTING STANDARDS
In 1999, the Company adopted Statement of Position ("SOP") 97-3, "Accounting by
Insurance and Other Enterprises for Insurance-Related Assessments." The SOP
provides guidance concerning when to recognize a liability for insurance-related
assessments and how those liabilities should be measured. Specifically,
insurance-related assessments should be recognized as liabilities when all of
the following criteria have been met: 1) an assessment has been imposed or it is
probable that an assessment will be imposed, 2) the event obligating an entity
to pay an assessment has occurred and 3) the amount of the assessment can be
reasonably estimated. Adoption of this statement was not material to the
Company's results of operations or financial position.
PENDING ACCOUNTING STANDARDS
In June 1999, the Financial Accounting Standards Board delayed the effective
date of Statement of Financial Accounting Standards ("SFAS") No. 133,
"Accounting for Derivative Instruments and Hedging Activities." SFAS 133
replaces existing pronouncements and practices with a single, integrated
accounting framework for derivatives and hedging activities. This statement
requires that all derivatives be recognized on the balance sheet at fair value.
Derivatives that are not hedges must be adjusted to fair value through income.
If the derivative is a hedge, depending on the nature of the hedge, changes in
the fair value of derivatives will either be offset against the change in the
fair value of the hedged assets, liabilities, or firm commitments through
earnings or recognized in other comprehensive income until the hedged item is
recognized in earnings. Additionally, the change in fair value of a derivative
which is not effective as a hedge will be immediately recognized in earnings.
The delay was effected through the issuance of SFAS No. 137, which extends the
SFAS No. 133 requirements to fiscal years beginning after June 15, 2000. As
such, the Company expects to adopt the provisions of SFAS No. 133 as of January
1, 2001. The impact of this statement is dependent upon the Company's derivative
positions and market conditions existing at the date of adoption. Based on
existing interpretations of the requirements of SFAS
10
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
No. 133, the impact of the adoption is not expected to be material to the
results of operations or financial position of the Company.
3. RELATED PARTY TRANSACTIONS
REINSURANCE
The Company has reinsurance agreements with ALIC in order to limit aggregate and
single exposure on large risks. A portion of the Company's premiums and policy
benefits are ceded to ALIC and reflected net of such reinsurance in the
statements of operations and comprehensive income. Reinsurance recoverables and
the related reserve for life-contingent contract benefits and contractholder
funds are reported separately in the statements of financial position. The
Company continues to have primary liability as the direct insurer for risks
reinsured.
The following amounts were ceded to ALIC under reinsurance agreements.
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------------------
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Premiums $ 3,408 $ 2,519 $ 2,171
Policy benefits 211 315 327
</TABLE>
Included in reinsurance recoverables at December 31, 1999 and 1998 are the net
amounts owed to ALIC of $458 and $3, respectively.
STRUCTURED SETTLEMENT ANNUITIES
The Company issued $14,561, $12,747 and $12,766 of structured settlement
annuities, a type of immediate annuity, in 1999, 1998 and 1997, respectively, at
prices determined based upon interest rates in effect at the time of purchase,
to fund structured settlements in matters involving AIC. Of these amounts,
$4,298, $5,152 and $3,468 relate to structured settlement annuities with life
contingencies and are included in premium income in 1999, 1998 and 1997,
respectively. Additionally, the reserve for life-contingent contract benefits
was increased by approximately 94% of such premium received in each of these
years. In most cases, these annuities were issued to Allstate Settlement
Corporation ("ASC"), a subsidiary of ALIC, which, under a "qualified
assignment", assumed AIC's obligation to make the future payments.
AIC has issued surety bonds to guarantee the payment of structured settlement
benefits assumed by ASC (from both AIC and non-related parties) and funded by
certain annuity contracts issued by the Company. ASC has entered into General
Indemnity Agreements pursuant to which it indemnified AIC for any liabilities
associated with the surety bonds and gives AIC certain collateral security
rights with respect to the annuities and certain other rights in the event of
any defaults covered by the surety bonds. Reserves recorded by the Company for
annuities related to the surety bonds were $1.19 billion and $1.08 billion at
December 31, 1999 and 1998, respectively.
BUSINESS OPERATIONS
The Company utilizes services performed by AIC and ALIC and business facilities
owned or leased, and operated by AIC in conducting its business activities. In
addition, the Company shares the services of employees with AIC. The Company
reimburses AIC and ALIC for the operating expenses incurred on behalf of the
Company. The Company is charged for the cost of these operating expenses based
on the level of services provided. Operating expenses, including compensation
and retirement and other benefit programs, allocated to the Company were
$16,155, $23,369 and $19,425 in 1999, 1998 and 1997, respectively. A
11
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
portion of these expenses relate to the acquisition of business which are
deferred and amortized over the contract period.
4. INVESTMENTS
FAIR VALUES
The amortized cost, gross unrealized gains and losses, and fair value for fixed
income securities are as follows:
<TABLE>
<CAPTION>
GROSS UNREALIZED
AMORTIZED ---------------- FAIR
COST GAINS LOSSES VALUE
---- ----- ------ -----
<S> <C> <C> <C> <C>
AT DECEMBER 31, 1999
U.S. government and agencies $ 413,875 $ 53,717 $ (2,705) $ 464,887
Municipal 60,256 997 (1,976) 59,277
Corporate 996,298 36,303 (31,695) 1,000,906
Foreign government 61,987 3,217 (639) 64,565
Mortgage-backed securities 291,304 4,770 (7,370) 288,704
Asset-backed securities 34,496 26 (316) 34,206
-------------- -------------- -------------- --------------
Total fixed income securities $ 1,858,216 $ 99,030 $ (44,701) $ 1,912,545
============== ============== ============== ==============
AT DECEMBER 31, 1998
U.S. government and agencies $ 443,930 $ 179,455 $ (1) $ 623,384
Municipal 31,617 2,922 (19) 34,520
Corporate 848,289 121,202 (899) 968,592
Mortgage-backed securities 291,520 14,294 (700) 305,114
Asset-backed securities 33,616 869 (28) 34,457
-------------- -------------- -------------- --------------
Total fixed income securities $ 1,648,972 $ 318,742 $ (1,647) $ 1,966,067
============== ============== ============== ==============
</TABLE>
SCHEDULED MATURITIES
The scheduled maturities for fixed income securities are as follows at December
31, 1999:
<TABLE>
<CAPTION>
AMORTIZED FAIR
COST VALUE
---- -----
<S> <C> <C>
Due in one year or less $ 6,720 $ 6,798
Due after one year through five years 168,795 168,859
Due after five years through ten years 217,305 218,381
Due after ten years 1,139,596 1,195,597
--------------- ---------------
1,532,416 1,589,635
Mortgage- and asset-backed securities 325,800 322,910
--------------- ---------------
Total $ 1,858,216 $ 1,912,545
=============== ===============
</TABLE>
Actual maturities may differ from those scheduled as a result of prepayments by
the issuers.
12
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
NET INVESTMENT INCOME
YEAR ENDED DECEMBER 31, 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Fixed income securities $ 135,561 $ 124,100 $ 116,763
Mortgage loans 12,346 10,309 7,896
Other 3,495 2,940 2,200
------------- ------------- -------------
Investment income, before expense 151,402 137,349 126,859
Investment expense 3,071 2,936 1,972
------------- ------------- -------------
Net investment income $ 148,331 $ 134,413 $ 124,887
============= ============= =============
</TABLE>
REALIZED CAPITAL GAINS AND LOSSES
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Fixed income securities $ (2,207) $ 4,755 $ 955
Mortgage loans 42 (65) (221)
Other 69 7 (33)
------------ ----------- -------------
Realized capital gains and losses (2,096) 4,697 701
Income taxes (765) 1,644 245
------------ ----------- -------------
Realized capital gains and losses, after tax $ (1,331) $ 3,053 $ 456
============ =========== =============
</TABLE>
Excluding calls and prepayments, gross gains of $1,713, $2,905 and $471 and
gross losses of $3,920, $164 and $105 were realized on sales of fixed income
securities during 1999, 1998 and 1997, respectively.
UNREALIZED NET CAPITAL GAINS
Unrealized net capital gains on fixed income securities included in
shareholder's equity at December 31, 1999 are as follows:
<TABLE>
<CAPTION>
COST/ GROSS UNREALIZED UNREALIZED
AMORTIZED COST FAIR VALUE GAINS LOSSES NET GAINS
-------------- ---------- ----- ------ ---------
<S> <C> <C> <C> <C> <C>
Fixed income securities $1,858,216 $1,912,545 $ 99,030 $(44,701) $ 54,329
========== ========== ======== ========
Reserve for life-contingent
contract benefits (7,815)
Deferred income taxes (16,280)
--------
Unrealized net capital gains $ 30,234
========
</TABLE>
<TABLE>
<CAPTION>
CHANGE IN UNREALIZED NET CAPITAL GAINS
YEAR ENDED DECEMBER 31, 1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Fixed income securities $(262,766) $ 70,948 $123,519
Reserves for life contingent-contract benefits 179,891 (42,251) (80,155)
Deferred income taxes 28,362 (9,922) (14,876)
Deferred policy acquisition costs and other 1,841 (348) (861)
--------- -------- --------
(Decrease) increase in unrealized net capital gains $ (52,672) $ 18,427 $ 27,627
========= ======== ========
</TABLE>
13
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
INVESTMENT LOSS PROVISIONS AND VALUATION ALLOWANCES
Pretax provisions for investment losses, principally relating to valuation
allowances on mortgage loans were $114 and $261 in 1998 and 1997, respectively.
There was not a provision for investment losses in 1999.
MORTGAGE LOAN IMPAIRMENT
A mortgage loan is impaired when it is probable that the Company will be unable
to collect all amounts due according to the contractual terms of the loan
agreement.
The Company had no impaired loans at December 31, 1999 and 1998.
Valuation allowances for mortgage loans at December 31, 1999, 1998 and 1997 were
$600, $600 and $486, respectively. For the years ended December 31, 1999, 1998
and 1997, there were no reductions of the mortgage loan valuation allowance for
dispositions of impaired loans. Net additions to the mortgage loan valuation
allowances were $114 and $261 for the years ended December 31, 1998 and 1997,
respectively. There were no additions or reductions to the mortgage loan
valuation allowance for the year ended December 31, 1999.
INVESTMENT CONCENTRATION FOR MUNICIPAL BOND AND COMMERCIAL MORTGAGE PORTFOLIOS
AND OTHER INVESTMENT INFORMATION
The Company maintains a diversified portfolio of municipal bonds. The largest
concentrations in the portfolio are presented below. Except for the following,
holdings in no other state exceeded 5% of the portfolio at December 31, 1999:
<TABLE>
<CAPTION>
(% of municipal bond portfolio carrying value) 1999 1998
---- ----
<S> <C> <C>
Arizona 22.7% - %
California 20.2 17.4
Ohio 16.4 30.2
Illinois 11.6 21.1
Pennsylvania 7.5 -
Indiana 5.0 -
</TABLE>
The Company's mortgage loans are collateralized by a variety of commercial real
estate property types located throughout the United States. Substantially all of
the commercial mortgage loans are non-recourse to the borrower. The states with
the largest portion of the commercial mortgage loan portfolio are listed below.
Except for the following, holdings in no other state exceeded 5% of the
portfolio at December 31, 1999:
<TABLE>
<CAPTION>
(% of commercial mortgage portfolio carrying value) 1999 1998
---- ----
<S> <C> <C>
California 34.9% 41.9%
New York 27.6 26.3
Illinois 13.2 15.8
New Jersey 12.3 6.9
Pennsylvania 9.7 6.2
</TABLE>
14
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
The types of properties collateralizing the commercial mortgage loans at
December 31, are as follows:
<TABLE>
<CAPTION>
(% of commercial mortgage portfolio carrying value) 1999 1998
---- ----
<S> <C> <C>
Retail 33.1% 39.5%
Office buildings 18.9 11.7
Warehouse 18.5 19.2
Apartment complex 15.8 18.5
Industrial 4.6 5.5
Other 9.1 5.6
----- -----
100.0% 100.0%
===== =====
</TABLE>
The contractual maturities of the commercial mortgage loan portfolio as of
December 31, 1999, for loans that were not in foreclosure are as follows:
<TABLE>
<CAPTION>
NUMBER OF LOANS CARRYING VALUE PERCENT
--------------- -------------- -------
<S> <C> <C>
2000 2 $ 4,475 2.7%
2001 5 7,165 4.3
2002 2 5,904 3.5
2004 4 5,289 3.2
Thereafter 33 144,164 86.3
----- --------------- -----
Total 46 $ 166,997 100.0%
===== =============== =====
</TABLE>
In 1999, there were no commercial mortgage loans which were contractually due.
SECURITIES ON DEPOSIT
At December 31, 1999, fixed income securities with a carrying value of $1,903
were on deposit with regulatory authorities as required by law.
5. FINANCIAL INSTRUMENTS
In the normal course of business, the Company invests in various financial
assets, incurs various financial liabilities and enters into agreements
involving derivative financial instruments and other off-balance-sheet financial
instruments. The fair value estimates of financial instruments presented on the
following page are not necessarily indicative of the amounts the Company might
pay or receive in actual market transactions. Potential taxes and other
transaction costs have not been considered in estimating fair value. The
disclosures that follow do not reflect the fair value of the Company as a whole
since a number of the Company's significant assets (including deferred policy
acquisition costs and reinsurance recoverables) and liabilities (including
traditional life and interest-sensitive life insurance reserves and deferred
income taxes) are not considered financial instruments and are not carried at
fair value. Other assets and liabilities considered financial instruments such
as accrued investment income and cash are generally of a short-term nature.
Their carrying values are assumed to approximate fair value.
15
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
FINANCIAL ASSETS
The carrying value and fair value of financial assets at December 31, are as
follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- -----
<S> <C> <C> <C> <C>
Fixed income securities $ 1,912,545 $ 1,912,545 $ 1,966,067 $ 1,966,067
Mortgage loans 166,997 159,853 145,095 154,872
Short-term investments 46,037 46,037 76,127 76,127
Policy loans 31,109 31,109 29,620 29,620
Separate Accounts 443,705 443,705 366,247 366,247
</TABLE>
CARRYING VALUE AND FAIR VALUE INCLUDE THE EFFECTS OF DERIVATIVE FINANCIAL
INSTRUMENTS WHERE APPLICABLE.
Fair values for fixed income securities are based on quoted market prices where
available. Non-quoted securities are valued based on discounted cash flows using
current interest rates for similar securities. Mortgage loans are valued based
on discounted contractual cash flows. Discount rates are selected using current
rates at which similar loans would be made to borrowers with similar
characteristics, using similar properties as collateral. Loans that exceed 100%
loan-to-value are valued at the estimated fair value of the underlying
collateral. Short-term investments are highly liquid investments with maturities
of less than one year whose carrying value are deemed to approximate fair value.
The carrying value of policy loans are deemed to approximate fair value.
Separate Accounts assets are carried in the statements of financial position at
fair value based on quoted market prices.
FINANCIAL LIABILITIES
The carrying value and fair value of financial liabilities at December 31, are
as follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
CARRYING FAIR CARRYING FAIR
VALUE VALUE VALUE VALUE
----- ----- ----- -----
<S> <C> <C> <C> <C>
Contractholder funds on
investment contracts $ 627,488 $ 605,113 $ 512,239 $ 518,448
Separate Accounts 443,705 443,705 366,247 366,247
</TABLE>
The fair value of contractholder funds on investment contracts is based on the
terms of the underlying contracts. Reserves on investment contracts with no
stated maturities (single premium and flexible premium deferred annuities) are
valued at the account balance less surrender charges. The fair value of
immediate annuities and annuities without life contingencies with fixed terms is
estimated using discounted cash flow calculations based on interest rates
currently offered for contracts with similar terms and durations. Separate
Accounts liabilities are carried at the fair value of the underlying assets.
DERIVATIVE FINANCIAL INSTRUMENTS
The only derivative financial instruments used by the Company are financial
futures contracts. The Company primarily uses this derivative financial
instrument to reduce its exposure to market risk, specifically interest rate
risk, in conjunction with asset/liability management. The Company does not hold
or issue these instruments for trading purposes.
16
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
The following table summarizes the contract amount, credit exposure, fair value
and carrying value of the Company's derivative financial instruments:
<TABLE>
<CAPTION>
CARRYING
VALUE
CONTRACT CREDIT FAIR ASSETS/
AMOUNT EXPOSURE VALUE (LIABILITIES)
------ -------- ----- -------------
<S> <C> <C> <C> <C>
AT DECEMBER 31, 1999
Financial futures contracts $ 8,700 $ - $ (29) $ 588
AT DECEMBER 31, 1998
Financial futures contracts $ 15,000 $ - $ (15) $ (223)
</TABLE>
CARRYING VALUE IS REPRESENTATIVE OF DEFERRED GAINS AND LOSSES.
The contract amounts are used to calculate the exchange of contractual payments
under the agreements and are not representative of the potential for gain or
loss on these agreements.
Credit exposure represents the Company's potential loss if all of the
counterparties failed to perform under the contractual terms of the contracts
and all collateral, if any, became worthless. This exposure is measured by the
fair value of contracts with a positive fair value at the reporting date. The
Company manages its exposure to credit risk primarily by establishing risk
control limits. To date, the Company has not incurred any losses as financial
futures contracts have limited off-balance-sheet credit risk as they are
executed on organized exchanges and require daily cash settlement of margins.
Fair value is the estimated amount that the Company would receive (pay) to
terminate or assign the contracts at the reporting date, thereby taking into
account the current unrealized gains or losses of open contracts. Dealer and
exchange quotes are used to value the Company's derivatives.
Financial futures are commitments to either purchase or sell designated
financial instruments at a future date for a specified price or yield. They may
be settled in cash or through delivery. As part of its asset/liability
management, the Company generally utilizes financial futures contracts to manage
its market risk related to anticipatory investment purchases and sales.
Financial futures used as hedges of anticipatory transactions pertain to
identified transactions which are probable to occur and are generally completed
within 90 days.
Market risk is the risk that the Company will incur losses due to adverse
changes in market rates and prices. Market risk exists for all of the derivative
financial instruments that the Company currently holds, as these instruments may
become less valuable due to adverse changes in market conditions. The Company
mitigates this risk through established risk control limits set by senior
management. In addition, the change in the value of the Company's derivative
financial instruments designated as hedges are generally offset by the change in
the value of the related assets and liabilities.
OFF-BALANCE-SHEET FINANCIAL INSTRUMENTS
Commitments to extend mortgage loans are agreements to lend to a borrower
provided there is no violation of any condition established in the contract. The
Company enters into these agreements to commit to future loan fundings at a
predetermined interest rate. Commitments generally have fixed expiration dates
or other termination clauses. Commitments to extend mortgage loans, which are
secured by the underlying properties, are valued based on estimates of fees
charged by other institutions to make
17
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
similar commitments to borrowers. At December 31, 1999, the Company had $10,000
in mortgage loan commitments which had a fair value of $100. The Company had no
mortgage loan commitments at December 31, 1998.
6. DEFERRED POLICY ACQUISITION COSTS
Certain costs of acquiring business which were deferred and amortized for the
years ended December 31, 1999 and 1998 are as follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Balance, beginning of year $ 87,830 $ 71,946
Acquisition costs deferred 26,247 23,723
Amortization charged to income (8,861) (8,238)
Adjustment from unlocking assumptions (124) 1,209
Effect of unrealized gains/(losses) 1,840 (810)
------------ ------------
Balance, end of year $ 106,932 $ 87,830
============ ============
</TABLE>
7. RESERVE FOR LIFE-CONTINGENT CONTRACT BENEFITS AND CONTRACTHOLDER FUNDS
At December 31, the reserve for life-contingent contract benefits consists of
the following:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Immediate annuities:
Structured settlement annuities $ 1,024,049 $ 1,135,813
Other immediate annuities 2,933 2,577
Traditional life 70,254 68,511
Other 780 1,203
----------- ------------
Total life-contingent contract benefits $ 1,098,016 $ 1,208,104
=========== ============
</TABLE>
The assumptions for mortality generally utilized in calculating reserves
include, the U.S. population with projected calendar year improvements and age
setbacks for impaired lives for structured settlement annuities; the 1983 group
annuity mortality table for other immediate annuities; and actual Company
experience plus loading for traditional life. Interest rate assumptions vary
from 3.5% to 10.3% for immediate annuities and 4.5% to 7.0% for traditional
life. Other estimation methods include the present value of contractually fixed
future benefits for structured settlement annuities, the present value of
expected future benefits based on historical experience for other immediate
annuities and the net level premium reserve method using the Company's
withdrawal experience rates for traditional life.
Premium deficiency reserves are established, if necessary and have been recorded
for the structured settlement annuity business, to the extent the unrealized
gains on fixed income securities would result in a premium deficiency had those
gains actually been realized. A liability of $8 million and $188 million is
included in the reserve for life-contingent contract benefits with respect to
this deficiency for the years ended December 31, 1999 and 1998, respectively.
The decrease in this liability in 1999 reflects declines in unrealized capital
gains on fixed income securities.
18
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
At December 31, contractholder funds consists of the following:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
Interest-sensitive life $211,729 $189,970
Fixed annuities:
Immediate annuities 303,564 285,977
Deferred annuities 273,864 177,317
Other investment contracts 50,000 50,000
-------- --------
Total contractholder funds $839,157 $703,264
======== ========
</TABLE>
Contractholder funds are equal to deposits received, net of commissions, and
interest credited to the benefit of the contractholder less withdrawals,
mortality charges and administrative expenses. Interest rates credited range
from 5.5% to 6.5% for interest-sensitive life contracts; 3.5% to 9.8% for
immediate annuities; 4.0% to 7.9% for deferred annuities and 6.6% for other
investment contracts. Withdrawal and surrender charge protection includes: i)
for interest-sensitive life, either a percentage of account balance or dollar
amount grading off generally over 20 years; and ii) for deferred annuities not
subject to a market value adjustment, either a declining or a level percentage
charge generally over nine years or less. Approximately 2% of deferred annuities
are subject to a market value adjustment.
8. CORPORATION RESTRUCTURING
On November 10, 1999 the Corporation announced a series of strategic initiatives
to aggressively expand its selling and servicing capabilities. The Corporation
also announced that it is implementing a program to reduce expenses by
approximately $600 million. The reduction will result in the elimination of
approximately 4,000 current non-agent positions, across all employment grades
and categories by the end of 2000, or approximately 10% of the Corporation's
non-agent work force. The impact of the reduction in employee positions is not
expected to materially impact the results of operations of the Company.
These cost reductions are part of a larger initiative to redeploy the cost
savings to finance new initiatives including investments in direct access and
internet channels for new sales and service capabilities, new competitive
pricing and underwriting techniques, new agent and claim technology and enhanced
marketing and advertising. As a result of the cost reduction program, the
Corporation recorded restructuring and related charges of $81 million pretax
during the fourth quarter of 1999. The Corporation anticipates that additional
pretax restructuring related charges of approximately $100 million will be
expensed as incurred throughout 2000. The Company's allocable share of these
expenses were immaterial in 1999 and are expected to be immaterial in 2000.
9. INCOME TAXES
The Company joins the Corporation and its other eligible domestic subsidiaries
(the "Allstate Group") in the filing of a consolidated federal income tax return
and is party to a federal income tax allocation agreement (the "Allstate Tax
Sharing Agreement"). Under the Allstate Tax Sharing Agreement, the Company pays
to or receives from the Corporation the amount, if any, by which the Allstate
Group's federal income tax liability is affected by virtue of inclusion of the
Company in the consolidated federal income tax return. Effectively, this
19
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
results in the Company's annual income tax provision being computed, with
adjustments, as if the Company filed a separate return.
Prior to June 30, 1995, the Corporation was a subsidiary of Sears, Roebuck & Co.
("Sears") and, with its eligible domestic subsidiaries, was included in the
Sears consolidated federal income tax return and federal income tax allocation
agreement. Effective June 30, 1995, the Corporation and Sears entered into a new
tax sharing agreement, which governs their respective rights and obligations
with respect to federal income taxes for all periods during which the
Corporation was a subsidiary of Sears, including the treatment of audits of tax
returns for such periods.
The Internal Revenue Service ("IRS") has completed its review of the Allstate
Group's federal income tax returns through the 1993 tax year. Any adjustments
that may result from IRS examinations of tax returns are not expected to have a
material impact on the financial position, liquidity or results of operations of
the Company.
The components of the deferred income tax assets and liabilities at December 31,
are as follows:
<TABLE>
<CAPTION>
1999 1998
---- ----
<S> <C> <C>
DEFERRED ASSETS
Life and annuity reserves $ 42,248 $ 41,073
Discontinued operations 366 364
Other postretirement benefits 296 328
Other assets 1,319 2,023
------------- -------------
Total deferred assets 44,229 43,788
DEFERRED LIABILITIES
Deferred policy acquisition costs (25,790) (20,573)
Unrealized net capital gains (16,280) (44,642)
Difference in tax bases of investments (3,194) (1,784)
Prepaid commission expense (682) (790)
Other liabilities (1,360) (1,448)
------------- -------------
Total deferred liabilities (47,306) (69,237)
------------- -------------
Net deferred liability $ (3,077) $ (25,449)
============= =============
</TABLE>
The components of income tax expense for the year ended December 31, are as
follows:
<TABLE>
<CAPTION>
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Current $ 8,650 $ 13,679 $ 14,874
Deferred 5,990 1,255 (1,578)
-------- -------- --------
Total income tax expense $ 14,640 $ 14,934 $ 13,296
======== ======== ========
</TABLE>
The Company paid income taxes of $12,547, $3,788 and $13,350 in 1999, 1998 and
1997, respectively.
20
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
A reconciliation of the statutory federal income tax rate to the effective
income tax rate on income from operations for the year ended December 31, is as
follows:
<TABLE>
<CAPTION>
1999 1998 1997
---- ---- ----
<S> <C> <C> <C>
Statutory federal income tax rate 35.0% 35.0% 35.0%
State income tax expense 1.6 1.6 2.2
Other (1.1) (1.5) (.3)
----- ----- -----
Effective income tax rate 35.5% 35.1% 36.9%
===== ===== =====
</TABLE>
Prior to January 1, 1984, the Company was entitled to exclude certain amounts
from taxable income and accumulate such amounts in a "policyholder surplus"
account. The balance in this account at December 31, 1999, approximately $389,
will result in federal income taxes payable of $136 if distributed by the
Company. No provision for taxes has been made as the Company has no plan to
distribute amounts from this account. No further additions to the account have
been permitted since the Tax Reform Act of 1984.
10. STATUTORY FINANCIAL INFORMATION
The Company's statutory capital and surplus was $214,738 and $196,416 at
December 31, 1999 and 1998, respectively. The Company's statutory net income was
$18,767, $13,649 and $18,592 for the years ended December 31, 1999, 1998 and
1997, respectively.
PERMITTED STATUTORY ACCOUNTING PRACTICES
The Company prepares its statutory financial statements in accordance with
accounting practices prescribed or permitted by the New York Department of
Insurance. Prescribed statutory accounting practices include a variety of
publications of the National Association of Insurance Commissioners ("NAIC"), as
well as state laws, regulations and general administrative rules. Permitted
statutory accounting practices encompass all accounting practices not so
prescribed. The Company does not follow any permitted statutory accounting
practices that have a significant impact on statutory surplus or statutory net
income.
The NAIC's codification initiative has produced a comprehensive guide of
statutory accounting principles, which the Company will implement in January
2001. The Company's state of domicile, New York, continues to review
codification and existing statutory accounting requirements for desired
revisions to existing state laws and regulations. The requirements are not
expected to have a material impact on the statutory surplus of the Company.
DIVIDENDS
The ability of the Company to pay dividends is dependent on business conditions,
income, cash requirements of the Company and other relevant factors. Under New
York Insurance Law, a notice of intention to distribute any dividend must be
filed with the New York Superintendent of Insurance not less than 30 days prior
to the distribution. Such proposed declaration is subject to the
Superintendent's disapproval.
RISK-BASED CAPITAL
The NAIC has a standard for assessing the solvency of insurance companies, which
is referred to as risk-based capital ("RBC"). The requirement consists of a
formula for determining each insurer's RBC and a model law specifying regulatory
actions if an insurer's RBC falls below specified levels. The RBC formula for
life insurance companies establishes capital requirements relating to insurance,
business, asset and
21
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
interest rate risks. At December 31, 1999, RBC for the Company was significantly
above a level that would require regulatory action.
11. BENEFIT PLANS
PENSION PLANS
Defined benefit pension plans, sponsored by AIC, cover domestic full-time
employees and certain part-time employees. Benefits under the pension plans are
based upon the employee's length of service, average annual compensation and
estimated social security retirement benefits. AIC's funding policy for the
pension plans is to make annual contributions in accordance with accepted
actuarial cost methods. The (benefit) and cost to the Company included in net
income was $(263), $382 and $597 for the pension plans in 1999, 1998 and 1997,
respectively.
POSTRETIREMENT BENEFITS OTHER THAN PENSIONS
AIC also provides certain health care and life insurance benefits for retired
employees. Qualified employees may become eligible for these benefits if they
retire in accordance with AIC's established retirement policy and are
continuously insured under AIC's group plans or other approved plans for ten or
more years prior to retirement. AIC shares the cost of the retiree medical
benefits with retirees based on years of service, with AIC's share being subject
to a 5% limit on annual medical cost inflation after retirement. AIC's
postretirement benefit plans currently are not funded. AIC has the right to
modify or terminate these plans.
PROFIT SHARING FUND
Employees of the Corporation and its domestic subsidiaries, including the
Company are also eligible to become members of The Savings and Profit Sharing
Fund of Allstate Employees ("Allstate Plan"). The Corporation's contributions
are based on the Corporation's matching obligation and performance.
The Company paid $176, $567, $164 in 1999, 1998 and 1997, respectively for
profit sharing.
12. OTHER COMPREHENSIVE INCOME
The components of other comprehensive income on a pretax and after-tax basis for
the year ended December 31, are as follows:
<TABLE>
<CAPTION>
1999 1998 1997
------------------------------ ----------------------------- ------------------------------
AFTER- AFTER- AFTER-
PRETAX TAX TAX PRETAX TAX TAX PRETAX TAX TAX
------ --- ------ ------ --- ------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
UNREALIZED CAPITAL GAINS
AND LOSSES:
Unrealized holding
(losses) gains arising
during the period $(83,241) $ 29,134 $(54,107) $ 33,218 $(11,626) $ 21,592 $ 43,686 $(15,290) $ 28,396
Less: reclassification
adjustments (2,207) 772 (1,435) 4,869 (1,704) 3,165 1,183 (414) 769
-------- -------- -------- -------- -------- -------- -------- -------- --------
Unrealized net capital
(losses) gains (81,034) 28,362 (52,672) 28,349 (9,922) 18,427 42,503 (14,876) 27,627
-------- -------- -------- -------- -------- -------- -------- -------- --------
Other comprehensive
(loss) income $(81,034) $ 28,362 $(52,672) $ 28,349 $ (9,922) $ 18,427 $ 42,503 $(14,876) $ 27,627
======== ======== ========= ======== ======== ======== ======== ======== ========
</TABLE>
22
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
NOTES TO FINANCIAL STATEMENTS
($ IN THOUSANDS)
13. COMMITMENTS AND CONTINGENT LIABILITIES
REGULATIONS AND LEGAL PROCEEDINGS
The Company's business is subject to the effect of a changing social, economic
and regulatory environment. Public and regulatory initiatives have varied and
have included employee benefit regulation, controls on medical care costs,
removal of barriers preventing banks from engaging in the securities and
insurance business, tax law changes affecting the taxation of insurance
companies, the tax treatment of insurance products and its impact on the
relative desirability of various personal investment vehicles, and proposed
legislation to prohibit the use of gender in determining insurance rates and
benefits. The ultimate changes and eventual effects, if any, of these
initiatives are uncertain.
From time to time the Company is involved in pending and threatened litigation
in the normal course of its business in which claims for monetary damages are
asserted. In the opinion of management, the ultimate liability, if any, arising
from such pending or threatened litigation is not expected to have a material
effect on the results of operations, liquidity or financial position of the
Company.
GUARANTY FUNDS
Under state insurance guaranty fund laws, insurers doing business in a state can
be assessed, up to prescribed limits, for certain obligations of insolvent
insurance companies to policyholders and claimants. The Company's expense
related to these funds have been immaterial.
MARKETING AND COMPLIANCE ISSUES
Companies operating in the insurance and financial services markets have come
under the scrutiny of regulators with respect to market conduct and compliance
issues. Under certain circumstances, companies have been held responsible for
providing incomplete or misleading sales materials and for replacing existing
policies with policies that were less advantageous to the policyholder. The
Company monitors its sales materials and enforces compliance procedures to
mitigate any exposure to potential litigation. The Company is a member of the
Insurance Marketplace Standards Association, an organization which advocates
ethical market conduct.
23
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE IV--REINSURANCE
($ IN THOUSANDS)
<TABLE>
<CAPTION>
GROSS NET
YEAR ENDED DECEMBER 31, 1999 AMOUNT CEDED AMOUNT
- ---------------------------- ------ ----- ------
<S> <C> <C> <C>
Life insurance in force $ 14,140,049 $ 1,066,993 $ 13,073,056
============ =========== ============
Premiums and contract charges:
Life and annuities $ 99,760 $ 3,397 $ 96,363
Accident and health 6,867 856 6,011
------------ ----------- ------------
$ 106,627 $ 4,253 $ 102,374
============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
GROSS NET
YEAR ENDED DECEMBER 31, 1998 AMOUNT CEDED AMOUNT
- ---------------------------- ------ ----- ------
<S> <C> <C> <C>
Life insurance in force $ 12,656,826 $ 857,500 $ 11,799,326
============ ========= ============
Premiums and contract charges:
Life and annuities $ 116,455 $ 2,318 $ 114,137
Accident and health 5,801 886 4,915
------------ --------- ------------
$ 122,256 $ 3,204 $ 119,052
============ ========= ============
</TABLE>
<TABLE>
<CAPTION>
GROSS NET
YEAR ENDED DECEMBER 31, 1997 AMOUNT CEDED AMOUNT
- ---------------------------- ------ ----- ------
<S> <C> <C> <C>
Life insurance in force $ 11,339,990 $ 721,040 $ 10,618,950
============ ========= ============
Premiums and contract charges:
Life and annuities $ 116,167 $ 2,185 $ 113,982
Accident and health 5,883 902 4,981
------------ --------- ------------
$ 122,050 $ 3,087 $ 118,963
============ ========= ============
</TABLE>
24
<PAGE>
ALLSTATE LIFE INSURANCE COMPANY OF NEW YORK
SCHEDULE V--VALUATION AND QUALIFYING ACCOUNTS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
BALANCE AT CHARGED TO BALANCE AT
BEGINNING COSTS AND END OF
OF PERIOD EXPENSES DEDUCTIONS PERIOD
--------- -------- ---------- ------
<S> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1999
Allowance for estimated losses
on mortgage loans $ 600 $ - $ - $ 600
============ ============ ============ ============
YEAR ENDED DECEMBER 31, 1998
Allowance for estimated losses
on mortgage loans $ 486 $ 114 $ - $ 600
============ ============ ============ ============
YEAR ENDED DECEMBER 31, 1997
Allowance for estimated losses
on mortgage loans $ 225 $ 261 $ - $ 486
============ ============ ============ ============
</TABLE>
25
<PAGE>
---------------------------------------------
ALLSTATE LIFE OF NEW
YORK SEPARATE
ACCOUNT A
FINANCIAL STATEMENTS AS OF DECEMBER 31, 1999
AND FOR THE PERIODS ENDED DECEMBER 31, 1999
AND DECEMBER 31, 1998 AND INDEPENDENT
AUDITORS' REPORT
<PAGE>
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholder of
Allstate Life Insurance Company of New York:
We have audited the accompanying statement of net assets of Allstate Life of
New York Separate Account A as of December 31, 1999 (including the assets of
each of the individual sub-accounts which comprise the Account as disclosed
in Note 1), and the related statements of operations for the period then
ended and the statements of changes in net assets for each of the periods in
the two year period then ended for each of the individual sub-accounts which
comprise the Account. These financial statements are the responsibility of
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at December 31, 1999
by correspondence with the account custodians. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Allstate Life of New York Separate
Account A as of December 31, 1999 (including the assets of each of the
individual sub-accounts which comprise the Account), and the results of
operations for each of the individual sub-accounts for the period then ended
and the changes in their net assets for each of the periods in the two year
period then ended in conformity with generally accepted accounting principles.
/s/ Deloitte & Touche LLP
Chicago, Illinois
March 27, 2000
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENT OF NET ASSETS
DECEMBER 31, 1999
- ------------------------------------------------------------------------------------------------
<S> <C>
ASSETS
Allocation to Sub-Accounts investing in the AIM Variable Insurance Funds:
Aggressive Growth, 12,432 shares (cost $158,759) $ 177,153
Balanced Fund, 6,444 shares (cost $79,572) 84,024
Capital Appreciation, 255,543 shares (cost $6,215,783) 9,092,204
Capital Development, 3,871 shares (cost $40,870) 46,028
Diversified Income, 262,808 shares (cost $2,884,027) 2,643,852
Global Utilities, 55,043 shares (cost $987,756) 1,254,971
Government Securities, 114,229 shares (cost $1,272,606) 1,214,257
Growth, 300,263 shares (cost $7,319,062) 9,683,482
Growth and Income, 493,077 shares (cost $11,214,069) 15,576,292
High Yield, 1,933 shares (cost $17,487) 17,433
International Equity, 165,155 shares (cost $3,272,322) 4,837,388
Money Market, 1,578,022 shares (cost $1,578,022) 1,578,022
Value, 665,744 shares (cost $17,789,516) 22,302,412
--------------
Total Assets 68,507,518
LIABILITIES
Payable to Allstate Life Insurance Company of New York:
Accrued contract maintenance charges 19,014
--------------
Net Assets $ 68,488,504
==============
</TABLE>
See notes to financial statements.
2
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
---------------------------------------------------------------------------
For the Period Ended December 31, 1999
---------------------------------------------------------------------------
Aggressive Capital Capital Diversified
Growth (a) Balanced (a) Appreciation Development (a) Income
---------- ------------ ------------ --------------- -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ - $ 1,095 $ 188,516 $ - $ 164,843
Charges from Allstate Life Insurance Company
of New York
Mortality and expense risk (143) (119) (76,212) (56) (28,287)
Administrative expense (11) (9) (5,645) (4) (2,095)
---------- ------------ ------------ --------------- -------------
Net investment income (loss) (154) 967 106,659 (60) 134,461
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 123 189 324,982 55 476,703
Cost of investments sold 117 182 276,808 52 493,648
---------- ------------ ------------ --------------- -------------
Net realized gains (losses) 6 7 48,174 3 (16,945)
---------- ------------ ------------ --------------- -------------
Change in unrealized gains (losses) 18,394 4,451 2,401,290 5,157 (181,607)
---------- ------------ ------------ --------------- -------------
Net gains (losses) on investments 18,400 4,458 2,449,464 5,160 (198,552)
---------- ------------ ------------ --------------- -------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 18,246 $ 5,425 $2,556,123 $ 5,100 $ (64,091)
========== ============ ============ =============== =============
</TABLE>
(a) For the Period Beginning October 25, 1999 and Ended December 31, 1999
See notes to financial statements.
3
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
- ---------------------------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
------------------------------------------------------------------------
For the Period Ended December 31, 1999
------------------------------------------------------------------------
Global Government Growth High
Utilities Securities Growth and Income Yield (a)
----------- ------------ ------------ ------------ -------------
<S> <C> <C> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 18,906 $ 43,946 $ 337,039 $ 129,184 $ 399
Charges from Allstate Life Insurance Company
of New York
Mortality and expense risk (9,493) (32,564) (83,130) (132,390) (14)
Administrative expense (703) (2,412) (6,158) (9,807) (1)
----------- ------------ ------------ ------------ -------------
Net investment income (loss) 8,710 8,970 247,751 (13,013) 384
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 157,147 2,759,791 423,990 458,270 15
Cost of investments sold 137,026 2,894,175 359,129 380,204 15
----------- ------------ ------------ ------------ -------------
Net realized gains (losses) 20,121 (134,384) 64,861 78,066 -
----------- ------------ ------------ ------------ -------------
Change in unrealized gains (losses) 236,069 (54,186) 1,792,381 3,178,263 (54)
----------- ------------ ------------ ------------ -------------
Net gains (losses) on investments 256,190 (188,570) 1,857,242 3,256,329 (54)
----------- ------------ ------------ ------------ -------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $ 264,900 $ (179,600) $2,104,993 $3,243,316 $ 330
=======-=== ============ ============ ============ =============
</TABLE>
(a) For the Period Beginning October 25, 1999 and Ended December 31, 1999
See notes to financial statements.
4
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
- -----------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
---------------------------------------------------------
For the Period Ended December 31, 1999
---------------------------------------------------------
International Money
Equity Market Value
-------------- ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME
Dividends $ 154,775 $ 61,128 $ 355,310
Charges from Allstate Life Insurance Company
of New York
Mortality and expense risk (37,180) (17,854) (173,801)
Administrative expense (2,754) (1,322) (12,874)
-------------- ------------ -------------
Net investment income (loss) 114,841 41,952 168,635
REALIZED AND UNREALIZED GAINS
(LOSSES) ON INVESTMENTS
Realized gains (losses) from sales of investments:
Proceeds from sales 300,780 1,206,358 530,128
Cost of investments sold 248,263 1,206,358 459,369
-------------- ------------ -------------
Net realized gains (losses) 52,517 - 70,759
-------------- ------------ -------------
Change in unrealized gains (losses) 1,419,551 - 3,419,919
-------------- ------------ -------------
Net gains (losses) on investments 1,472,068 - 3,490,678
-------------- ------------ -------------
CHANGE IN NET ASSETS
RESULTING FROM OPERATIONS $1,586,909 $ 41,952 $ 3,659,313
============== ============ =============
</TABLE>
See notes to financial statements.
5
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
-------------------------------------------------------------------------
Aggressive Capital
Growth Balanced Capital Appreciation Development
------------ ------------ ----------------------------- ------------
1999 (a) 1999 (a) 1999 1998 1999 (a)
------------ ------------ ------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ (154) $ 967 $ 106,659 $ 66,071 $ (60)
Net realized gains (losses) 6 7 48,174 760 3
Change in unrealized gains (losses) 18,394 4,451 2,401,290 457,939 5,157
------------ ------------ ------------- ------------- ------------
Change in net assets resulting from operations 18,246 5,425 2,556,123 524,770 5,100
------------ ------------ ------------- ------------- ------------
FROM CAPITAL TRANSACTIONS
Deposits 43,819 49,251 2,073,160 2,056,465 17,015
Benefit payments - - (23,548) (29,888) -
Payments on termination - (79) (225,136) (115,473) -
Contract maintenance charges (48) (24) (3,267) (1,759) (12)
Transfers among the sub-accounts
and with the Fixed Account - net 115,087 29,427 408,212 (181,131) 23,912
------------ ------------ ------------- ------------- ------------
Change in net assets resulting
from capital transactions 158,858 78,575 2,229,421 1,728,214 40,915
------------ ------------ ------------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS 177,104 84,000 4,785,544 2,252,984 46,015
NET ASSETS AT BEGINNING OF PERIOD - - 4,304,137 2,051,153 -
------------ ------------ ------------- ------------- ------------
NET ASSETS AT END OF PERIOD $ 177,104 $ 84,000 $ 9,089,681 $ 4,304,137 $ 46,015
============ ============ ============= ============= ============
</TABLE>
(a) For the Period Beginning October 25, 1999 and Ended December 31, 1999
See notes to financial statements.
6
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31,
- -----------------------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
----------------------------------------------------------------------------
Diversified Income Global Utilities Government Securities
------------------------- ------------------------ --------------------------
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ----------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 134,461 $ 94,730 $ 8,710 $ 4,558 $ 8,970 $ 79,067
Net realized gains (losses) (16,945) 7,969 20,121 (484) (134,384) 109,308
Change in unrealized gains (losses) (181,607) (85,959) 236,069 24,459 (54,186) (23,404)
------------ ------------ ------------ ----------- ------------ ------------
Change in net assets resulting from operations (64,091) 16,740 264,900 28,533 (179,600) 164,971
------------ ------------ ------------ ----------- ------------ ------------
FROM CAPITAL TRANSACTIONS
Deposits 1,187,532 1,222,826 734,901 356,711 635,526 2,725,221
Benefit payments (12,220) (32,778) (3,120) (4,815) (661,198) -
Payments on termination (185,900) (37,509) (82,757) (3,609) (403,351) (8,618)
Contract maintenance charges (810) (491) (463) (223) 317 (913)
Transfers among the sub-accounts
and with the Fixed Account - net (46,215) (98,970) (53,342) (93,970) (1,749,948) 268,867
------------ ------------ ------------ ----------- ------------ ------------
Change in net assets resulting
from capital transactions 942,387 1,053,078 595,219 254,094 (2,178,654) 2,984,557
------------ ------------ ------------ ----------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS 878,296 1,069,818 860,119 282,627 (2,358,254) 3,149,528
------------ ------------ ------------ ----------- ------------ ------------
NET ASSETS AT BEGINNING OF PERIOD 1,764,822 695,004 394,504 111,877 3,572,174 422,646
------------ ------------ ------------ ----------- ------------ ------------
NET ASSETS AT END OF PERIOD $2,643,118 $1,764,822 $1,254,623 $ 394,504 $1,213,920 $3,572,174
============ ============ ============ =========== ============ ============
</TABLE>
See notes to financial statements.
7
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31,
- --------------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
-------------------------------------------------------------------
Growth Growth and Income High Yield
-------------------------- --------------------------- ----------
1999 1998 1999 1998 1999 (a)
------------ ------------ ------------- ------------ ----------
<S> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 247,751 $ 225,339 $ (13,013) $ 21,895 $ 384
Net realized gains (losses) 64,861 29,091 78,066 17,916 -
Change in unrealized gains (losses) 1,792,381 542,074 3,178,263 1,076,360 (54)
------------ ------------ ------------- ------------ ----------
Change in net assets resulting from operations 2,104,993 796,504 3,243,316 1,116,171 330
------------ ------------ ------------- ------------ ----------
FROM CAPITAL TRANSACTIONS
Deposits 3,265,114 2,076,025 5,424,896 3,226,558 17,103
Benefit payments (26,647) (7,214) (46,523) (82,435) -
Payments on termination (298,191) (100,412) (319,041) (161,641) -
Contract maintenance charges (3,399) (1,377) (5,525) (2,399) (5)
Transfers among the sub-accounts
and with the Fixed Account - net 453,397 30,657 672,802 75,882 -
------------ ------------ ------------- ------------ ----------
Change in net assets resulting
from capital transactions 3,390,274 1,997,679 5,726,609 3,055,965 17,098
------------ ------------ ------------- ------------ ----------
INCREASE (DECREASE) IN NET ASSETS 5,495,267 2,794,183 8,969,925 4,172,136 17,428
NET ASSETS AT BEGINNING OF PERIOD 4,185,527 1,391,344 6,602,044 2,429,908 -
------------ ------------ ------------- ------------ ----------
NET ASSETS AT END OF PERIOD $9,680,794 $4,185,527 $15,571,969 $6,602,044 $ 17,428
============ ============ ============= ============ ==========
</TABLE>
(a) For the Period Beginning October 25, 1999 and Ended December 31, 1999
See notes to financial statements.
8
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
<TABLE>
<CAPTION>
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE PERIOD ENDED DECEMBER 31,
- ----------------------------------------------------------------------------------------------------------------------------------
AIM Variable Insurance Funds Sub-Accounts
----------------------------------------------------------------------------------
International Equity Money Market Value
-------------------------- ------------------------- ---------------------------
1999 1998 1999 1998 1999 1998
------------ ------------ ------------ ----------- ------------- ------------
<S> <C> <C> <C> <C> <C> <C>
FROM OPERATIONS
Net investment income (loss) $ 114,841 $ (7,420) $ 41,952 $ 26,737 $ 168,635 $ 261,042
Net realized gains (losses) 52,517 5,640 - - 70,759 32,103
Change in unrealized gains (losses) 1,419,551 165,760 - - 3,419,919 1,022,492
------------ ------------ ------------ ----------- ------------- ------------
Change in net assets resulting from operations 1,586,909 163,980 41,952 26,737 3,659,313 1,315,637
------------ ------------ ------------ ----------- ------------- ------------
FROM CAPITAL TRANSACTIONS
Deposits 1,110,124 716,187 1,305,204 509,817 11,613,584 3,273,006
Benefit payments (27,341) (6,664) (28,371) (36,887) (57,538) (7,168)
Payments on termination (93,590) (33,261) (413,731) (16,252) (646,773) (103,596)
Contract maintenance charges (1,428) (726) (468) (218) (7,380) (2,602)
Transfers among the sub-accounts
and with the Fixed Account - net 298,246 41,000 (295,054) 32,193 584,939 235,246
------------ ------------ ------------ ----------- ------------- ------------
Change in net assets resulting
from capital transactions 1,286,011 716,536 567,580 488,653 11,486,832 3,394,886
------------ ------------ ------------ ----------- ------------- ------------
INCREASE (DECREASE) IN NET ASSETS 2,872,920 880,516 609,532 515,390 15,146,145 4,710,523
NET ASSETS AT BEGINNING OF PERIOD 1,963,126 1,082,610 968,052 452,662 7,150,077 2,439,554
------------ ------------ ------------ ----------- ------------- ------------
NET ASSETS AT END OF PERIOD $4,836,046 $1,963,126 $1,577,584 $ 968,052 $22,296,222 $7,150,077
============ ============ ============ =========== ============= ============
</TABLE>
See notes to financial statements.
9
<PAGE>
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. ORGANIZATION
Allstate Life of New York Separate Account A (the "Account"), a unit
investment trust registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, is a Separate Account of
Allstate Life Insurance Company of New York ("Allstate New York"). The
assets of the Account are legally segregated from those of Allstate New
York. Allstate New York is wholly owned by Allstate Life Insurance
Company, a wholly owned subsidiary of Allstate Insurance Company, which is
wholly owned by The Allstate Corporation.
Allstate New York issues two variable annuity contracts, the AIM Lifetime
Plus-SM- ("Lifetime Plus") and the AIM Lifetime Plus-SM-II ("Lifetime Plus
II"), the deposits of which are invested at the direction of the
contractholders in the sub-accounts that comprise the Account. Absent any
contract provisions wherein Allstate New York contractually guarantees
either a minimum return or account value to the beneficiaries of the
contractholders in the form of a death benefit, the contractholders bear
the investment risk that the sub-accounts may not meet their stated
objectives. The sub-accounts invest in the following underlying mutual
fund portfolios of the AIM Variable Insurance Funds (the "Funds").
Aggressive Growth Growth
Balanced Growth and Income
Capital Appreciation High Yield
Capital Development International Equity
Diversified Income Money Market
Global Utilities Value
Government Securities
Allstate New York provides insurance and administrative services to the
contractholders for a fee. Allstate New York also maintains a fixed
account ("Fixed Account"), to which contractholders may direct their
deposits and receive a fixed rate of return. Allstate New York has sole
discretion to invest the assets of the Fixed Account, subject to
applicable law.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
VALUATION OF INVESTMENTS - Investments consist of shares of the Funds,
and are stated at fair value based on quoted market prices at
December 31, 1999.
INVESTMENT INCOME - Investment income consists of dividends declared by
the Funds and is recognized on the ex-dividend date.
REALIZED GAINS AND LOSSES - Realized gains and losses represent the
difference between the proceeds from sales of portfolio shares by the
Account and the cost of such shares, which is determined on a weighted
average basis.
10
<PAGE>
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
FEDERAL INCOME TAXES - The Account intends to qualify as a segregated
asset account as defined in the Internal Revenue Code ("Code"). As such,
the operations of the Account are included in the tax return of Allstate
New York. Allstate New York is taxed as a life insurance company under the
Code. No federal income taxes are allocable to the Account as the Account
did not generate taxable income.
USE OF ESTIMATES - The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the
financial statements and accompanying notes. Actual results could differ
from those estimates.
3. EXPENSES
ADMINISTRATIVE EXPENSE CHARGE - Allstate New York deducts administrative
expense charges daily at a rate equal to .10% per annum of the average
daily net assets of the Account for the Lifetime Plus and Lifetime Plus
II. Allstate New York guarantees that the amount of this charge will not
increase over the life of the contract.
CONTRACT MAINTENANCE CHARGE - Allstate New York deducts an annual
maintenance charge of $35 for Lifetime Plus and Lifetime Plus II on each
contract anniversary and guarantees that this charge will not increase
over the life of the contract. This charge will be waived if certain
conditions are met.
MORTALITY AND EXPENSE RISK CHARGE - Allstate New York assumes mortality
and expense risks related to the operations of the Account and deducts
charges daily based on the daily net assets of the Account. The mortality
and expense risk charge covers insurance benefits available with the
contract and certain expenses of the contract. It also covers the risk
that the current charges will not be sufficient in the future to cover the
cost of administering the contract. Allstate New York guarantees that the
amount of this charge will not increase over the life of the contract. At
the contractholder's discretion, additional options, primarily death
benefits, may be purchased for an additional charge.
11
<PAGE>
4. UNITS ISSUED AND REDEEMED
<TABLE>
<CAPTION>
(Units in whole amounts) Unit activity during 1999
---------------------------------------------
Accumulation
Units Outstanding Units Units Units Outstanding Unit Value
December 31, 1998 Issued Redeemed December 31, 1999 December 31, 1999
----------------- ------------ ------------ ----------------- -----------------
<S> <C> <C> <C> <C> <C>
Investments in the AIM Variable Insurance
Funds Sub-Accounts:
Aggressive Growth - 12,664 (3) 12,661 $ 13.99
Balanced - 6,390 (8) 6,382 13.16
Capital Appreciation 287,336 167,925 (29,513) 425,748 21.35
Capital Development - 3,949 (1) 3,948 11.66
Diversified Income 146,644 128,234 (47,677) 227,201 11.63
Global Utilities 25,418 45,026 (9,036) 61,408 20.43
Government Securities 301,983 79,492 (272,981) 108,494 11.19
Growth 220,831 192,666 (30,283) 383,214 25.26
Growth and Income 361,890 324,260 (41,017) 645,133 24.14
High Yield - 1,751 - 1,751 9.96
International Equity 136,898 105,320 (21,528) 220,690 21.91
Money Market 87,010 167,828 (117,406) 137,432 11.48
Value 405,246 646,140 (64,309) 987,077 22.59
Units relating to accrued contract maintenance charges are included in units redeemed.
</TABLE>
12
<PAGE>
PART C
OTHER INFORMATION
24. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS
Allstate Life Insurance Company of New York Financial Statements and Financial
Statement Schedules and the financial statements of Allstate Life of New York
Separate Account A are contained in Part B of this Registration Statement.
(b) EXHIBITS
(1) Form of Resolution of the Board of Directors of Allstate Life Insurance
Company of New York authorizing establishment of the Allstate Life of New
York Separate Account A (Previously filed in Post-Effective Amendment No. 3
to this Registration Statement (File No. 033-65381) dated April 30, 1999.)
(2) Not Applicable
(3) Form of Underwriting Agreement (Previously filed in Pre-Effective Amendment
No. 1 to this Registration Statement (File No. 033-65381) dated
September 20, 1996.)
(4)(a) Form of Contract for the AIM Lifetime Plus(SM) Variable Annuity
(Previously filed in Pre-Effective Amendment No. 1 to this Registration
Statement (File No. 033-65381) dated September 20, 1996.)
(b) Form of Contract for the AIM Lifetime Plus(SM) II Variable Annuity
(Previously filed in Post-Effective Amendment No. 4 to this Registration
Statement (File No. 033-65381) dated November 12, 1999.)
(5)(a) Form of Application for the AIM Lifetime Plus(SM) Variable Annuity
(Previously filed in Pre-Effective Amendment No. 1 to this Registration
Statement (File No. 033-65381) dated September 20, 1996.)
(b) Form of Application for AIM Lifetime Plus(SM) II Variable Annuity
(Previously filed in Post-Effective Amendment No. 4 to this Registration
Statement (File No. 033-65381) dated November 12, 1999.)
(6)(a) Restated Certificate of Incorporation of Allstate Life Insurance Company
of New York (Previously filed in Depositor's Form 10-K dated March 30, 1999
and incorporated herein by reference.)
(b) Amended By-laws of Allstate Life Insurance Company of New York (Previously
filed in Depositor's Form 10-K dated March 30, 1999 and incorporated herein
by reference.)
(7) Not applicable
(8) Form of Participation Agreement (Previously filed in Pre-Effective
Amendment No. 1 to this Registration Statement (File No. 033-65381) dated
September 20, 1996.)
(9)(a) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and
General Counsel of Allstate Life Insurance Company of New York (AIM
Lifetime Plus(SM) Variable Annuity) (Previously filed in Pre-Effective
Amendment No. 1 to this Registration Statement (File No. 033-65381) dated
September 20, 1996.)
(b) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and
General Counsel of Allstate Life Insurance Company of New York (AIM
Lifetime Plus(SM) II Variable Annuity) (Previously filed in Post-Effective
Amendment No. 5 to this Registration Statement (File No. 033-65381) dated
December 30, 1999.)
(c) Opinion and Consent of Michael J. Velotta, Vice President, Secretary and
General Counsel of Allstate Life Insurance Company of New York (Previously
filed in Post-Effective Amendment No. 6 to this Registration Statement
(File No. 033-65381)February 14, 2000.)
(10) (a) Independent Auditors' Consent
(b) Consent of Freedman, Levy, Kroll & Simonds
(11) Not Applicable
(12) Not Applicable
(13)(a) Schedule of Computation of Performance Quotation (Previously filed in
Post-Effective Amendment No. 2 to this Registration Statement (File No.
033-65381) dated April 1, 1998.)
(b) Schedule of Computation of Performance Quotation (Previously filed in
Post-Effective Amendment No. 4 to this Registration Statement (File No.
033-65381) dated November 12, 1999.)
(c) Schedule of Computation of Performance Quotation (Previously filed in
Post-Effective Amendment No. 6 to this Registration Statement (File No.
033-65381) dated February 14, 2000.)
(d) Schedule of Computation of Performance Quotation.
(14) Not Applicable
(99)(a) Power of Attorney for Kevin R. Slawin (Previously filed in Pre-Effective
Amendment No. 1 to this Registration Statement (File No. 033-65381) dated
September 20, 1996.)
(b) Powers of Attorney for Thomas J. Wilson, II, Michael J. Velotta, Marcia D.
Alazraki, Cleveland Johnson, Jr., John R. Raben, Jr., Sally A. Slacke
(Previously filed in Post-Effective Amendment No. 3 to this Registration
Statement (File No. 033-65381) dated April 30, 1999.)
(c) Power of Attorney for Samuel H. Pilch (Previously filed in Post-Effective
Amendment No. 4 to this Registration Statement (File No. 033-65381) dated
November 12, 1999.)
(d) Power of Attorney for Vincent A. Fusco (Previously filed in Post-Effective
Amendment No. 6 to this Registration Statement (File No. 033-65381) dated
February 14, 2000.)
<PAGE>
25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
<TABLE>
<CAPTION>
NAME AND PRINCIPAL POSITION AND OFFICE WITH
BUSINESS ADDRESS* DEPOSITOR OF THE ACCOUNT
<S> <C>
Thomas J. Wilson, II Director and President
Michael J. Velotta Director, Vice President, Secretary and General Counsel
Marcia D. Alazraki Director
Marla G. Friedman Director and Vice President
Vincent A. Fusco Director
Cleveland Johnson, Jr. Director
Kenneth R. O'Brien Director
John R. Raben, Jr. Director
Sally A. Slacke Director
Kevin R. Slawin Director and Vice President
Patricia W. Wilson Director and Assistant Vice President
Karen C. Gardner Vice President
Samuel H. Pilch Controller
Casey J. Sylla Chief Investment Officer
James P. Zils Treasurer
Sharmaine M. Miller Chief Administrative Officer
Richard L. Baker Assistant Vice President
D. Steven Boger Assistant Vice President
Adrian B. Corbiere Assistant Vice President
Patricia A. Coffey Assistant Vice President
Dorothy E. Even Assistant Vice President
John M. Goense Assistant Vice President
Judith P. Greffin Assistant Vice President
Keith A. Hauschildt Assistant Vice President
Ronald Johnson Assistant Vice President
Charles D. Mires Assistant Vice President
Barry S. Paul Assistant Vice President
C. Nelson Strom Assistant Vice President and Corporate Actuary
Timothy N. Vander Pas Assistant Vice President
David A. Walsh Assistant Vice President
Joanne M. Derrig Assistant Secretary and Assistant General Counsel
Emma M. Kalaidjian Assistant Secretary
Paul N. Kierig Assistant Secretary
Mary J. McGinn Assistant Secretary
Ralph A. Bergholtz Assistant Treasurer
Mark A. Bishop Assistant Treasurer
Robert B. Bodett Assistant Treasurer
Barbara S. Brown Assistant Treasurer
Rhonda Hoops Assistant Treasurer
Peter S. Horos Assistant Treasurer
Thomas C. Jensen Assistant Treasurer
Kathleen A. Knudson Assistant Treasurer
David L. Kocourek Assistant Treasurer
Daniel C. Leimbach Assistant Treasurer
Beth K. Marder Assistant Treasurer
Jeffrey A. Mazer Assistant Treasurer
Ronald A. Mendel Assistant Treasurer
Stephen J. Stone Assistant Treasurer
R. Steven Taylor Assistant Treasurer
Louise J. Walton Assistant Treasurer
Jerry D. Zinkula Assistant Treasurer
</TABLE>
* The principal business address of Mr. Fusco is One Allstate Drive, P.O. Box
9095, Farmingville, New York 11738. The principal business address of the other
foregoing officers and directors is 3100 Sanders Road, Northbrook, Illinois
60062.
<PAGE>
26. PERSONS CONTROLLED BY OR UNDER COMMON CONTROL WITH DEPOSITOR OR REGISTRANT
Incorporated herein by reference to Annual Report on Form 10-K, filed by the
Allstate Corporation on March 28, 2000 (File No. 1-11840).
27. NUMBER OF CONTRACT OWNERS
AIM Lifetime Plus(SM) Variable Annuity:
As of January 31, 2000, there were 885 nonqualified contracts and 479 qualified
contracts.
AIM Lifetime Plus(SM) II Variable Annuity:
As of January 31, 2000, there were 12 nonqualified contracts and 8 qualified
contracts.
28. INDEMNIFICATION
The by-laws of both Allstate Life Insurance Company of New York (Depositor) and
ALFS, Inc. (Principal Underwriter), provide for the indemnification of its
Directors, Officers and Controlling Persons, against expenses, judgments, fines
and amounts paid in settlement as incurred by such person, if such person acted
properly. No indemnification shall be made in respect of any claim, issue or
matter as to which such person shall have been adjudged to be liable for
negligence or misconduct in the performance of a duty to the company, unless a
court determines such person is entitled to such indemnity.
Insofar as indemnification for liability arising out of the Securities Act of
1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than payment by the registrant of expenses incurred by a
director, officer or controlling person of the registrant in the successful
defense of any action, suit or proceeding) is asserted by such director, officer
or controlling person in connection with the securities being registered, the
registrant will, unless in the opinion of is counsel the matter has been settled
by controlling precedent, submit to a court of appropriate jurisdiction the
question whether such indemnification by it is against public policy as
expressed in the Act and will be governed by the final adjudication of such
issue.
PRINCIPAL UNDERWRITERS
(a) Registrant's principal underwriter is also the principal underwriter with
respect to the following investment companies:
Allstate Financial Advisors Separate Account I
Charter National Variable Annuity Account
Glenbrook Life Multi-Manager Variable Account
Glenbrook Life and Annuity Company Variable Annuity Account
Glenbrook Life and Annuity Company Separate Account A
Glenbrook Life AIM Variable Life Separate Account A
Glenbrook Life Scudder Variable Account (A)
Glenbrook Life Variable Life Separate Account A
Intramerica Variable Annuity Account
<PAGE>
(b) The directors and officers of the principal underwriter are:
<TABLE>
<CAPTION>
<S> <C>
Name and Principal Business Positions and Offices
Address* of Each Such Person with Underwriter
Thomas J. Wilson, II Director
Kevin R. Slawin Director
Michael J. Velotta Director and Secretary
John R. Hunter Director, President and Chief Executive Officer
Janet M. Albers Vice President and Controller
Brent H. Hamann Vice President
Andrea J. Schur Vice President
Terry R. Young General Counsel and Assistant Secretary
James P. Zils Treasurer
Lisa A. Burnell Assistant Vice President and Compliance Officer
Joanne M. Derrig Assistant Secretary and Assistant General Counsel
Emma M. Kalaidjian Assistant Secretary
Carol S. Watson Assistant Secretary
Barry S. Paul Assistant Treasurer
</TABLE>
* The principal address of ALFS, Inc. is 3100 Sanders Road, Northbrook,
Illinois.
(c) Compensation of ALFS, Inc.
None
30. LOCATION OF ACCOUNTS AND RECORDS
The Depositor, Allstate Life Insurance Company of New York, is located at One
Allstate Drive, P.O. Box 9095, Farmingville, New York 11738.
The Underwriter, ALFS, Inc., is located at 3100 Sanders Road, Northbrook,
Illinois 60062.
Each company maintains those accounts and records required to be maintained
pursuant to Section 31(a) of the Investment Company Act and the rules
promulgated thereunder.
31. MANAGEMENT SERVICES
None
32. UNDERTAKINGS
The Registrant undertakes to file a post-effective amendment to the Registration
Statement as frequently as is necessary to ensure that the audited financial
statements in the Registration Statement are never more than 16 months old for
so long as payments under the variable annuity contracts may be accepted.
Registrant furthermore agrees to include either, as part of any prospectus or
application to purchase a contract offered by the prospectus, a toll-free number
that an applicant can call to request a Statement of Additional Information or a
post card or similar written communication that the applicant can remove to send
for a Statement of Additional Information. Finally, the Registrant agrees to
deliver any Statement of Additional Information and any Financial Statements
required to be made available under this Form N-4 promptly upon written or oral
request.
REPRESENTATIONS PURSUANT TO SECTION 403(B) OF THE INTERNAL REVENUE CODE
Allstate Life Insurance Company of New York represents that it is relying upon a
November 28, 1988 Securities and Exchange Commission no-action letter issued to
the American Council of Life Insurance and that the provisions of paragraphs 1-4
of the no-action letter have been complied with.
REPRESENTATION REGARDING CONTRACT EXPENSES
Allstate Life insurance Company of New York represents that the fees and charges
deducted under the 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 Life Insurance
Company of New York under the Contracts. Allstate Life Insurance Company of New
York bases its representation on its assessment of all of the facts and
circumstances, including such relevant factors as: the nature and extent of such
services, expenses and risks; the need for Allstate Life Insurance Company of
New York to earn a profit; the degree to which the Contracts include innovative
features; and the regulatory standards for exemptive relief under the Investment
Company Act of 1940 used prior to October 1996,including the range of industry
practice. This representation applies to all Contracts sold pursuant to this
Registration Statement, including those sold on the terms specifically described
in the prospectus(es) contained herein, or any variations therein, based on
supplements, endorsements, or riders to any Contracts or prospectus(es), or
otherwise.
<PAGE>
SIGNATURES
As required by the Securities Act of 1933 and the Investment Company Act of
1940, the Registrant, Allstate Life of New York Separate Account A, certifies
that it meets the requirements of Securities Act Rule 485(b) for effectiveness
of this Amendment to the Registration Statement and has caused this amended
Registration Statement to be signed on its behalf by the undersigned, thereunto
duly authorized in the Township of Northfield, State of Illinois, on the 18th
day of April, 2000.
ALLSTATE LIFE OF NEW YORK SEPARATE ACCOUNT A
(REGISTRANT)
BY: ALLSTATE LIFE INSURANCE COMPANY OF
NEW YORK
(DEPOSITOR)
By: /s/ MICHAEL J. VELOTTA
------------------------
Michael J. Velotta
Vice President, Secretary and
General Counsel
As required by the Securities Act of 1933, this amended Registration Statement
has been duly signed below by the following Directors and Officers of Allstate
Life Insurance Company of New York on the 18th day of April, 2000.
<TABLE>
<CAPTION>
<S> <C>
*/THOMAS J. WILSON, II President and Director
- ---------------------- (Principal Executive Officer)
Thomas J. Wilson, II
*/VINCENT A. FUSCO Chief Operations Officer and Director
- ----------------------
Vincent A. Fusco
/s/MICHAEL J. VELOTTA Vice President, Secretary, General
- ----------------------- Counsel and Director
Michael J. Velotta
*/KEVIN R. SLAWIN Vice President and Director
- ------------------ (Principal Financial Officer)
Kevin R. Slawin
*/SAMUEL J. PILCH Controller
- ---------------------- (Principal Accounting Officer)
Samuel H. Pilch
*/MARCIA D. ALAZRAKI Director
- ---------------------
Marcia D. Alazraki
*/CLEVELAND JOHNSON, JR. Director
- -----------------------------
Cleveland Johnson, Jr.
*/JOHN R. RABEN, JR. Director
- -----------------------
John R. Raben, Jr.
*/SALLY A. SLACKE Director
- -------------------------
Sally A. Slacke
</TABLE>
*/ By Michael J. Velotta, pursuant to Powers of Attorney previously filed.
<PAGE>
Exhibit Index
Exhibit Description
Exhibit 10(a) Independent Auditors' Consent
Exhibit 10(b) Consent of Freedman, Levy, Kroll & Simonds
Exhibit 13(d) Performance Data Calculations
EXHIBIT 10(a)
Independent Auditors' Consent
INDEPENDENT AUDITORS' CONSENT
We consent to the use in this Post-Effective Amendment No. 7 to Registration
Statement No. 033-65381 of Allstate Life of New York Separate Account A of
Allstate Life Insurance Company of New York on Form N-4 of our report dated
February 25, 2000 relating to the financial statements and the related financial
statement schedules of Allstate Life Insurance Company of New York, and our
report dated March 27, 2000 relating to the financial statements of Allstate
Life of New York Separate Account A, appearing in the Statement of Additional
Information (which is incorporated by reference in the Prospectuses of Allstate
Life of New York Separate Account A of Allstate Life Insurance Company of New
York), which is part of such Registration Statement, and to the reference to us
under the heading "Experts" in such Prospectuses and Statements of Additional
Information.
/s/ DELOITTE & TOUCHE LLP
Chicago, Illinois
May 9, 2000
<PAGE>
EXHIBIT 10(b) Consent of Freedman, Levy, Kroll & Simonds
FREEDMAN, LEVY, KROLL & SIMONDS
CONSENT OF
FREEDMAN, LEVY, KROLL & SIMONDS
We hereby consent to the reference to our firm under the caption "Legal
Matters" in the prospectus contained in Post-Effective Amendment No. 7 to the
Form N-4 Registration Statement of Allstate Life of New York Separate Account A
(File No. 033-65381).
/s/ Freedman, Levy, Kroll & Simonds
FREEDMAN, LEVY, KROLL & SIMONDS
Washington, D.C.
April 19, 2000
STANDARDIZED
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AIM High Yield
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
<S> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 9.442171 105.90785
1 FEE 31-Dec-99 0.568227941 9.957697 0.05706 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.957697 105.85078 1054.0300
0.183
FORMULA: 1000*(1+T)= 1054.0300
= 991.0300207
T = -4.79% 33.22%
R = -0.90%
AIM Balanced
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 11.528292 86.74312
1 FEE 31-Dec-99 0.568227941 13.162014 0.04317 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.162014 86.69995 1141.1459
0.183
FORMULA: 1000*(1+T)= 1141.1459
= 1078.145913
T = 50.71% 105.40%
R = 7.81%
AIM Capital Development
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 9.091391 109.99417
1 FEE 31-Dec-99 0.568227941 11.655207 0.04875 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 11.655207 109.94542 1281.4366
0.183
FORMULA: 1000*(1+T)= 1281.4366
= 1218.436583
T = 193.60% 286.46%
R = 21.84%
AIM Aggressive Growth
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 10.954584 91.28599
1 FEE 31-Dec-99 0.568227941 13.988318 0.04062 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.988318 91.24536 1276.3692
0.183
FORMULA: 1000*(1+T)= 1276.3692
= 1213.369171
T = 187.00% 278.21%
R = 21.34%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Today 12/31/99 11/30/99 12/31/98 12/31/98 12/31/97 12/31/96 12/29/95 12/31/94
One Month Ago 11/30/99
End of last year 12/31/98
One year Ago 12/31/98
Two Years Ago 12/31/97
Three Years ago 12/31/96
Four Years Ago 12/29/95
Five Years Ago 12/31/94
AUVS
Today One Month End of last One year Ago Two Years Ago Three Years ago Inception Five Years Ago
Ago Year
-----------------------------------------------------------------------------------------------------------------
AIM HIGH 9.957697 9.683797 9.140960865 9.140960865 #N/A #N/A 9.442171 #N/A
AIM BAL 13.162014 12.344739 11.19327581 11.19327581 #N/A #N/A 11.528292 #N/A
AIM CAPDV 11.655207 10.295463 9.159862544 9.159862544 #N/A #N/A 9.091391 #N/A
AIM AGGR 13.988318 12.246163 9.810123305 9.810123305 #N/A #N/A 10.954584 #N/A
Returns
MTD YTD One Year Three Year Tot. 3 Yr. AVG Inception Tot. Inception AVG Five Year Tot 5 Yr. Avg.
AIM HIGH 2.83% -0.42% 8.93% #N/A #N/A 5.46% 33.62% #N/A #N/A
AIM BAL 6.62% 31.62% 17.59% #N/A #N/A 14.17% 105.96% #N/A #N/A
AIM CAPDV 13.21% 16.55% 27.24% #N/A #N/A 28.20% 287.40% #N/A #N/A
AIM AGGR 14.23% 39.88% 42.59% #N/A #N/A 27.69% 279.13% #N/A #N/A
</TABLE>
<PAGE>
Adjusted Historical
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AIM High Yield
01-May-98
TO NO. YEARS 1.667
31-Dec-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.451664 95.67854
1 FEE 01-May-99 0.568227941 9.776758 0.05812 0.07
2 FEE 31-Dec-99 0.568227941 9.957697 0.05706 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.957697 95.56336 951.5910
1.667
FORMULA: 1000*(1+T)= 951.5910
= 897.5909655
T = -6.27% -2.93%
R = -10.24%
AIM Balanced
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.145636 98.56454
1 FEE 01-May-99 0.568227941 11.660117 0.04873 0.07
2 FEE 31-Dec-99 0.568227941 13.162014 0.04317 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.162014 98.47264 1296.0983
1.667
FORMULA: 1000*(1+T)= 1296.0983
= 1242.098273
T = 13.89% 16.83%
R = 24.21%
AIM Capital Development
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.042477 99.57703
1 FEE 01-May-99 0.568227941 8.660971 0.06561 0.07
2 FEE 31-Dec-99 0.568227941 11.655207 0.04875 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 11.655207 99.46267 1159.2580
1.667
FORMULA: 1000*(1+T)= 1159.2580
= 1105.257997
T = 6.19% 9.27%
R = 10.53%
AIM Aggressive Growth
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.056517 99.43801
1 FEE 01-May-99 0.568227941 9.634628 0.05898 0.07
2 FEE 31-Dec-99 0.568227941 13.988318 0.04062 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.988318 99.33841 1389.5772
1.667
FORMULA: 1000*(1+T)= 1389.5772
= 1335.577243
T = 18.95% 21.81%
R = 33.56%
AIM Blue Chip
30-Dec-99
TO NO. YEARS 0.003
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Dec-99 1000.00 21.353203 46.83138
1 FEE 31-Dec-99 0.568227941 21.352355 0.02661 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 21.352355 46.80477 999.3920
0.003
FORMULA: 1000*(1+T)= 999.3920
= 936.392046
T = -100.00% -19.92%
R = -6.36%
AIM Dent Demo
30-Dec-99
TO NO. YEARS 0.003
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Dec-99 1000.00 9.749857 102.56560
1 FEE 31-Dec-99 0.568227941 9.749470 0.05828 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.749470 102.50732 999.3920
0.003
FORMULA: 1000*(1+T)= 999.3920
= 936.392046
T = -100.00% -19.92%
R = -6.36%
AIM Global G&I
10-Feb-93
TO NO. YEARS 6.886
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 10-Feb-93 1000.00 6.832098 146.36792
1 FEE 10-Feb-94 0.568227941 7.969267 0.07130 0.07
2 FEE 10-Feb-95 0.568227941 7.650292 0.07428 0.06
3 FEE 10-Feb-96 0.568227941 8.724668 0.06513 0.05
4 FEE 10-Feb-97 0.568227941 9.955942 0.05707 0.04
5 FEE 10-Feb-98 0.568227941 11.709140 0.04853 0.03
6 FEE 10-Feb-99 0.568227941 12.928247 0.04395 0.02
7 FEE 31-Dec-99 0.568227941 13.187479 0.04309 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.187479 145.96457 1924.9047
6.886
FORMULA: 1000*(1+T)= 1924.9047
= 1915.904724
T = 9.90% 9.98%
R = 91.59%
AIM Telecommunications
18-Oct-93
TO NO. YEARS 6.201
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 18-Oct-93 1000.00 7.065868 141.52543
1 FEE 18-Oct-94 0.568227941 8.069402 0.07042 0.07
2 FEE 18-Oct-95 0.568227941 10.164509 0.05590 0.06
3 FEE 18-Oct-96 0.568227941 11.330840 0.05015 0.05
4 FEE 18-Oct-97 0.568227941 14.543783 0.03907 0.04
5 FEE 18-Oct-98 0.568227941 12.278865 0.04628 0.03
6 FEE 18-Oct-99 0.568227941 19.693053 0.02885 0.02
7 FEE 31-Dec-99 0.568227941 32.133668 0.01768 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 32.133668 141.21707 4537.8225
6.201
FORMULA: 1000*(1+T)= 4537.8225
= 4528.822496
T = 27.58% 27.62%
R = 352.88%
AIM High Yield
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.140961 109.39769
1 FEE 31-Dec-99 0.568227941 9.957697 0.05706 0.07
RESULTING VALUE 31-Dec-99 9.957697 109.34063 1088.7808
1.000
FORMULA: 1000*(1+T)= 1088.7808
= 1025.780818
T = 2.58% 8.88%
R = 2.58%
AIM Balanced
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 11.193276 89.33935
1 FEE 31-Dec-99 0.568227941 13.162014 0.04317 0.07
RESULTING VALUE 31-Dec-99 13.162014 89.29618 1175.3176
1.000
FORMULA: 1000*(1+T)= 1175.3176
= 1112.317565
T = 11.23% 17.53%
R = 11.23%
AIM Capital Development
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.159863 109.17194
1 FEE 31-Dec-99 0.568227941 11.655207 0.04875 0.07
RESULTING VALUE 31-Dec-99 11.655207 109.12319 1271.8534
1.000
FORMULA: 1000*(1+T)= 1271.8534
= 1208.853377
T = 20.89% 27.19%
R = 20.89%
AIM Aggressive Growth
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.810123 101.93552
1 FEE 31-Dec-99 0.568227941 13.988318 0.04062 0.07
RESULTING VALUE 31-Dec-99 13.988318 101.89490 1425.3382
1.000
FORMULA: 1000*(1+T)= 1425.3382
= 1362.338212
T = 36.23% 42.53%
R = 36.23%
AIM Blue Chip
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.568227941 21.352355 0.02661 0.07
RESULTING VALUE 31-Dec-99 21.352355 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Dent Demo
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.568227941 9.749470 0.05828 0.07
RESULTING VALUE 31-Dec-99 9.749470 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Global G&I
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 13.399204 74.63130
1 FEE 31-Dec-99 0.568227941 13.187479 0.04309 0.07
RESULTING VALUE 31-Dec-99 13.187479 74.58821 983.6304
1.000
FORMULA: 1000*(1+T)= 983.6304
= 920.6304455
T = -7.94% -1.64%
R = -7.94%
AIM Telecommunications
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 15.783797 63.35611
1 FEE 31-Dec-99 0.568227941 32.133668 0.01768 0.07
RESULTING VALUE 31-Dec-99 32.133668 63.33843 2035.2960
1.000
FORMULA: 1000*(1+T)= 2035.2960
= 1972.296009
T = 97.23% 103.53%
R = 97.23%
AIM High Yield
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568227941 #N/A #N/A
2 FEE 31-Dec-96 0.568227941 #N/A #N/A
3 FEE 31-Dec-97 0.568227941 #N/A #N/A
4 FEE 31-Dec-98 0.568227941 9.140961 0.06216
5 FEE 31-Dec-99 0.568227941 9.957697 0.05706 0.02
RESULTING VALUE 31-Dec-99 9.957697 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Balanced
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568227941 #N/A #N/A
2 FEE 31-Dec-96 0.568227941 #N/A #N/A
3 FEE 31-Dec-97 0.568227941 #N/A #N/A
4 FEE 31-Dec-98 0.568227941 11.193276 0.05077
5 FEE 31-Dec-99 0.568227941 13.162014 0.04317 0.02
RESULTING VALUE 31-Dec-99 13.162014 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Capital Development
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568227941 #N/A #N/A
2 FEE 31-Dec-96 0.568227941 #N/A #N/A
3 FEE 31-Dec-97 0.568227941 #N/A #N/A
4 FEE 31-Dec-98 0.568227941 9.159863 0.06203
5 FEE 31-Dec-99 0.568227941 11.655207 0.04875 0.02
RESULTING VALUE 31-Dec-99 11.655207 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Aggressive Growth
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568227941 #N/A #N/A
2 FEE 31-Dec-96 0.568227941 #N/A #N/A
3 FEE 31-Dec-97 0.568227941 #N/A #N/A
4 FEE 31-Dec-98 0.568227941 9.810123 0.05792
5 FEE 31-Dec-99 0.568227941 13.988318 0.04062 0.02
RESULTING VALUE 31-Dec-99 13.988318 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Blue Chip
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568227941 #N/A #N/A
2 FEE 31-Dec-96 0.568227941 #N/A #N/A
3 FEE 31-Dec-97 0.568227941 #N/A #N/A
4 FEE 31-Dec-98 0.568227941 #N/A #N/A
5 FEE 31-Dec-99 0.568227941 21.352355 0.02661 0.02
RESULTING VALUE 31-Dec-99 21.352355 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Dent Demo
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568227941 #N/A #N/A
2 FEE 31-Dec-96 0.568227941 #N/A #N/A
3 FEE 31-Dec-97 0.568227941 #N/A #N/A
4 FEE 31-Dec-98 0.568227941 #N/A #N/A
5 FEE 31-Dec-99 0.568227941 9.749470 0.05828 0.02
RESULTING VALUE 31-Dec-99 9.749470 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM Global G&I
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.604222 131.50590
1 FEE 29-Dec-95 0.568227941 8.656365 0.06564
2 FEE 31-Dec-96 0.568227941 9.924082 0.05726
3 FEE 31-Dec-97 0.568227941 11.367627 0.04999
4 FEE 31-Dec-98 0.568227941 13.399204 0.04241
5 FEE 31-Dec-99 0.568227941 13.187479 0.04309 0.02
RESULTING VALUE 31-Dec-99 13.187479 131.24752 1730.8238
5.000
FORMULA: 1000*(1+T)= 1730.8238
= 1712.823838
T = 11.36% 11.60%
R = 71.28%
AIM Telecommunications
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 8.103681 123.40071
1 FEE 29-Dec-95 0.568227941 9.877684 0.05753
2 FEE 31-Dec-96 0.568227941 11.617911 0.04891
3 FEE 31-Dec-97 0.568227941 13.117924 0.04332
4 FEE 31-Dec-98 0.568227941 15.783797 0.03600
5 FEE 31-Dec-99 0.568227941 32.133668 0.01768 0.02
RESULTING VALUE 31-Dec-99 32.133668 123.19727 3958.7802
5.000
FORMULA: 1000*(1+T)= 3958.7802
= 3940.780207
T = 31.56% 31.68%
R = 294.08%
</TABLE>
<PAGE>
AIM II STANDARDIZED Enhanced DB
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1yr ago: 12/31/98
Date: 12/31/99
AIM II MM
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
<S> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.691953 103.17838
1 FEE 31-Dec-99 0.568228 10.017403 0.05672 0.07
RESULTING VALUE 31-Dec-99 10.017403 103.12165 1033.0111
1.000
FORMULA: 1000*(1+T)= 1033.0111
= 1033.011133
T = 3.30% 3.30%
R = 3.30%
AIM II GOV
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.169848 98.32989
1 FEE 31-Dec-99 0.568228 9.906311 0.05736 0.07
RESULTING VALUE 31-Dec-99 9.906311 98.27253 973.5182
1.000
FORMULA: 1000*(1+T)= 973.5182
= 973.5181531
T = -2.65% -2.65%
R = -2.65%
AIM II DINC
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.217762 97.86879
1 FEE 31-Dec-99 0.568228 9.892329 0.05744 0.07
RESULTING VALUE 31-Dec-99 9.892329 97.81134 967.5820
1.000
FORMULA: 1000*(1+T)= 967.5820
= 967.5819624
T = -3.24% -3.24%
R = -3.24%
AIM II GUTL
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.945619 125.85551
1 FEE 31-Dec-99 0.568228 10.475409 0.05424 0.07
RESULTING VALUE 31-Dec-99 10.475409 125.80127 1317.8197
1.000
FORMULA: 1000*(1+T)= 1317.8197
= 1239.409452
T = 23.94% 31.78%
R = 23.94%
AIM II GI
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.123363 123.10173
1 FEE 31-Dec-99 0.568228 10.764682 0.05279 0.07
RESULTING VALUE 31-Dec-99 10.764682 123.04894 1324.5827
1.000
FORMULA: 1000*(1+T)= 1324.5827
= 1245.770002
T = 24.58% 32.46%
R = 24.58%
AIM II VALUE
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.119804 123.15569
1 FEE 31-Dec-99 0.568228 10.411329 0.05458 0.07
RESULTING VALUE 31-Dec-99 10.411329 123.10111 1281.6462
1.000
FORMULA: 1000*(1+T)= 1281.6462
= 1205.388223
T = 20.54% 28.16%
R = 20.54%
AIM II INTL
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.281393 137.33635
1 FEE 31-Dec-99 0.568228 11.143988 0.05099 0.07
RESULTING VALUE 31-Dec-99 11.143988 137.28537 1529.9064
1.000
FORMULA: 1000*(1+T)= 1529.9064
= 1438.877005
T = 43.89% 52.99%
R = 43.89%
AIM II GROW
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.933060 126.05476
1 FEE 31-Dec-99 0.568228 10.589876 0.05366 0.07
RESULTING VALUE 31-Dec-99 10.589876 126.00110 1334.3360
1.000
FORMULA: 1000*(1+T)= 1334.3360
= 1254.943053
T = 25.49% 33.43%
R = 25.49%
AIM II CAP
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.577409 131.97123
1 FEE 31-Dec-99 0.568228 10.816651 0.05253 0.07
RESULTING VALUE 31-Dec-99 10.816651 131.91870 1426.9185
1.000
FORMULA: 1000*(1+T)= 1426.9185
= 1342.016865
T = 34.20% 42.69%
R = 34.20%
AIM II BALANCED
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.736218 114.46601
1 FEE 31-Dec-99 0.568228 10.288209 0.05523 0.07
RESULTING VALUE 31-Dec-99 10.288209 114.41078 1177.0820
1.000
FORMULA: 1000*(1+T)= 1177.0820
= 1107.045602
T = 10.70% 17.71%
R = 10.70%
AIM II Capital Appreciation
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.966655 167.59810
1 FEE 14-Oct-97 0.568228 7.383923 0.07695 0.07
2 FEE 14-Oct-98 0.568228 5.819397 0.09764 0.06
3 FEE 14-Oct-99 0.568228 8.036144 0.07071 0.05
4 FEE 31-Dec-99 0.568228 10.816651 0.05253 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.816651 167.30026 1809.6286
3.211
FORMULA: 1000*(1+T)= 1809.6286
= 1748.101201
T = 19.00% 20.28%
R = 74.81%
AIM II Growth
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.045442 198.19869
1 FEE 14-Oct-97 0.568228 6.692229 0.08491 0.07
2 FEE 14-Oct-98 0.568228 6.325544 0.08983 0.06
3 FEE 14-Oct-99 0.568228 8.568048 0.06632 0.05
4 FEE 31-Dec-99 0.568228 10.589876 0.05366 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.589876 197.90397 2095.7785
3.211
FORMULA: 1000*(1+T)= 2095.7785
= 2024.522046
T = 24.56% 25.91%
R = 102.45%
AIM II International Equity
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.786618 172.81251
1 FEE 14-Oct-97 0.568228 7.043586 0.08067 0.07
2 FEE 14-Oct-98 0.568228 6.430761 0.08836 0.06
3 FEE 14-Oct-99 0.568228 8.184568 0.06943 0.05
4 FEE 31-Dec-99 0.568228 11.143988 0.05099 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 11.143988 172.52306 1922.5949
3.211
FORMULA: 1000*(1+T)= 1922.5949
= 1857.226637
T = 21.26% 22.57%
R = 85.72%
AIM II Value
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.086268 196.60779
1 FEE 14-Oct-97 0.568228 6.833056 0.08316 0.07
2 FEE 14-Oct-98 0.568228 6.516957 0.08719 0.06
3 FEE 14-Oct-99 0.568228 8.769108 0.06480 0.05
4 FEE 31-Dec-99 0.568228 10.411329 0.05458 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.411329 196.31806 2043.9320
3.211
FORMULA: 1000*(1+T)= 2043.9320
= 1974.438273
T = 23.59% 24.93%
R = 97.44%
AIM II Growth & Income
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.085859 196.62363
1 FEE 14-Oct-97 0.568228 6.856759 0.08287 0.07
2 FEE 14-Oct-98 0.568228 6.297188 0.09024 0.06
3 FEE 14-Oct-99 0.568228 8.670539 0.06554 0.05
4 FEE 31-Dec-99 0.568228 10.764682 0.05279 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.764682 196.33220 2113.4537
3.211
FORMULA: 1000*(1+T)= 2113.4537
= 2041.596255
T = 24.89% 26.24%
R = 104.16%
AIM II Global Utilities
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.508719 181.53040
1 FEE 14-Oct-97 0.568228 6.749099 0.08419 0.07
2 FEE 14-Oct-98 0.568228 7.192020 0.07901 0.06
3 FEE 14-Oct-99 0.568228 8.594262 0.06612 0.05
4 FEE 31-Dec-99 0.568228 10.475409 0.05424 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.475409 181.24684 1898.6347
3.211
FORMULA: 1000*(1+T)= 1898.6347
= 1834.081124
T = 20.79% 22.10%
R = 83.41%
AIM II Diversified Income
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 9.561241 104.58893
1 FEE 14-Oct-97 0.568228 10.579597 0.05371 0.07
2 FEE 14-Oct-98 0.568228 10.667657 0.05327 0.06
3 FEE 14-Oct-99 0.568228 9.799507 0.05799 0.05
4 FEE 31-Dec-99 0.568228 9.892329 0.05744 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.892329 104.36653 1032.4280
3.211
FORMULA: 1000*(1+T)= 1032.4280
= 997.325465
T = -0.08% 1.00%
R = -0.27%
AIM II Government Securities
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 8.832917 113.21288
1 FEE 14-Oct-97 0.568228 9.378424 0.06059 0.07
2 FEE 14-Oct-98 0.568228 10.139952 0.05604 0.06
3 FEE 14-Oct-99 0.568228 9.877323 0.05753 0.05
4 FEE 31-Dec-99 0.568228 9.906311 0.05736 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.906311 112.98137 1119.2285
3.211
FORMULA: 1000*(1+T)= 1119.2285
= 1081.174743
T = 2.46% 3.57%
R = 8.12%
AIM II Money Market
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 8.936670 111.89850
1 FEE 14-Oct-97 0.568228 9.268857 0.06131 0.07
2 FEE 14-Oct-98 0.568228 9.624163 0.05904 0.06
3 FEE 14-Oct-99 0.568228 9.937754 0.05718 0.05
4 FEE 31-Dec-99 0.568228 10.017403 0.05672 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.017403 111.66425 1118.5858
3.211
FORMULA: 1000*(1+T)= 1118.5858
= 1080.553848
T = 2.44% 3.55%
R = 8.06%
AIM II Balanced
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 9.008716 111.00361
1 FEE 31-Dec-99 0.568228 10.288209 0.05523 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.288209 110.94838 1141.4601
0.183
FORMULA: 1000*(1+T)= 1141.4601
= 1073.543246
T = 47.24% 105.71%
R = 7.35%
AIM II High Yield
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 9.503200 105.22771
1 FEE 31-Dec-99 0.568228 10.024814 0.05668 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.024814 105.17103 1054.3200
0.183
FORMULA: 1000*(1+T)= 1054.3200
= 991.5879839
T = -4.50% 33.42%
R = -0.84%
AIM II Capital Development
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 8.362896 119.57580
1 FEE 31-Dec-99 0.568228 10.724213 0.05299 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.724213 119.52282 1281.7882
0.183
FORMULA: 1000*(1+T)= 1281.7882
= 1205.521803
T = 177.03% 287.04%
R = 20.55%
AIM II Aggressive Growth
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 8.491539 117.76428
1 FEE 31-Dec-99 0.568228 10.846135 0.05239 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.846135 117.71189 1276.7190
0.183
FORMULA: 1000*(1+T)= 1276.7190
= 1200.754224
T = 171.11% 278.77%
R = 20.08%
</TABLE>
<PAGE>
NON-Standardized
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Today 12/31/99 11/30/99 12/31/98 12/31/98 12/31/97 12/31/96 12/29/95
One Month Ago 11/30/99
End of last year 12/31/98
One year Ago 12/31/98
Two Years Ago 12/31/97
Three Years ago 12/31/96
Four Years Ago 12/29/95
Five Years Ago 12/31/94
</TABLE>
<TABLE>
<CAPTION>
AUVS
Today One Month Ago End of last yearOne year Ago Two Years Ago Three Years ago Inception
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
AIM II CAP 10.816651 9.288533849 7.577409182 7.577409182 6.625556778 5.913605888 5.966654677
AIM II GROW 10.589876 9.625322663 7.933060258 7.933060258 6.426166264 5.131465752 5.045442113
AIM II INTL 11.143988 9.513202123 7.281393198 7.281393198 6.440404172 6.101495701 5.786618149
AIM II VALUE 10.411329 9.824305593 8.119803559 8.119803559 6.527489737 5.346375587 5.08626841
AIM II G&I 10.764682 9.649755388 8.123362993 8.123362993 6.538591061 5.268959639 5.085858689
AIM II GUTL 10.475409 9.520678746 7.945619348 7.945619348 7.075791115 5.89330497 5.508719257
AIM II DINC 9.8923286 9.866178778 10.21776239 10.21776239 10.68262726 9.893342844 9.561240994
AIM II GOV 9.9063106 9.950689336 10.16984813 10.16984813 9.562948987 8.957449194 8.832916978
AIM II MM 10.017403 9.98464521 9.691953289 9.691953289 9.346050941 9.005312562 8.936670436
AIM II BAL 10.288209 9.648150077 8.736218106 8.736218106 #N/A #N/A 9.008715992
AIM II HY 10.024814 9.747827842 9.188785845 9.188785845 #N/A #N/A 9.50319994
AIM II CAPD 10.724213 9.471881667 8.41556961 8.41556961 #N/A #N/A 8.362895937
AIM II AGG 10.846135 9.494117334 7.595100304 7.595100304 #N/A #N/A 8.491539487
Returns
MTD YTD One Year Three Year Tot. 3 Yr. AVG Inception Tot. Inception AVG
--- --- -------- --------------- --------- -------------- -------------
AIM II CAP 16.45% 42.75% 42.75% 82.91% 22.30% 81.29% 20.35%
AIM II GROW 10.02% 33.49% 33.49% 106.37% 27.32% 109.89% 25.97%
AIM II INTL 17.14% 53.05% 53.05% 82.64% 22.24% 92.58% 22.64%
AIM II VALUE 5.98% 28.22% 28.22% 94.74% 24.88% 104.69% 24.99%
AIM II G&I 11.55% 32.52% 32.52% 104.30% 26.89% 111.66% 26.30%
AIM II GUTL 10.03% 31.84% 31.84% 77.75% 21.14% 90.16% 22.16%
AIM II DINC 0.27% -3.18% -3.18% -0.01% 0.00% 3.46% 1.07%
AIM II GOV -0.45% -2.59% -2.59% 10.59% 3.41% 12.15% 3.64%
AIM II MM 0.33% 3.36% 3.36% 11.24% 3.61% 12.09% 3.62%
AIM II BAL 6.63% 17.77% 17.77% #N/A #N/A 14.20% 106.26%
AIM II HY 2.84% 9.10% 9.10% #N/A #N/A 5.49% 33.82%
AIM II CAPD 13.22% 27.43% 27.43% #N/A #N/A 28.24% 287.98%
AIM II AGG 14.24% 42.80% 42.80% #N/A #N/A 27.73% 279.69%
<PAGE>
Today 12/31/94
One Month Ago
End of last year
One year Ago
Two Years Ago
Three Years ago
Four Years Ago
Five Years Ago
AUVS
Five Yeas Ago
----------------
AIM II CAP 3.804355581
AIM II GROW 3.309347194
AIM II INTL 4.449417927
AIM II VALUE 3.501423594
AIM II G&I 3.368128926
AIM II GUTL 4.258548275
AIM II DINC 7.7423072
AIM II GOV 7.777416876
AIM II MM 8.103988927
AIM II BAL #N/A
AIM II HY #N/A
AIM II CAPD #N/A
AIM II AGG #N/A
Returns
Five Year Avg
-------------
AIM II CAP 14.78%
AIM II GROW 19.11%
AIM II INTL 10.35%
AIM II VALUE 18.32%
AIM II G&I 19.25%
AIM II GUTL 13.29%
AIM II DINC 5.71%
AIM II GOV 5.51%
AIM II MM 3.64%
AIM II BAL #N/A
AIM II HY #N/A
AIM II CAPD #N/A
AIM II AGG #N/A
</TABLE>
<PAGE>
ADJUSTED HISTORICAL
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1yr ago: 12/31/98
Date: 12/31/99
AIM II MM
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
<S> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.691953 103.17838
1 FEE 31-Dec-99 0.568228 10.017403 0.05672 0.07
RESULTING VALUE 31-Dec-99 10.017403 103.12165 1033.0111
1.000
FORMULA: 1000*(1+T)= 1033.0111
= 1033.011133
T = 3.30% 3.30%
R = 3.30%
AIM II GOV
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.169848 98.32989
1 FEE 31-Dec-99 0.568228 9.906311 0.05736 0.07
RESULTING VALUE 31-Dec-99 9.906311 98.27253 973.5182
1.000
FORMULA: 1000*(1+T)= 973.5182
= 973.5181531
T = -2.65% -2.65%
R = -2.65%
AIM II DINC
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.217762 97.86879
1 FEE 31-Dec-99 0.568228 9.892329 0.05744 0.07
RESULTING VALUE 31-Dec-99 9.892329 97.81134 967.5820
1.000
FORMULA: 1000*(1+T)= 967.5820
= 967.5819624
T = -3.24% -3.24%
R = -3.24%
AIM II GUTL
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.945619 125.85551
1 FEE 31-Dec-99 0.568228 10.475409 0.05424 0.07
RESULTING VALUE 31-Dec-99 10.475409 125.80127 1317.8197
1.000
FORMULA: 1000*(1+T)= 1317.8197
= 1239.409452
T = 23.94% 31.78%
R = 23.94%
AIM II GI
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.123363 123.10173
1 FEE 31-Dec-99 0.568228 10.764682 0.05279 0.07
RESULTING VALUE 31-Dec-99 10.764682 123.04894 1324.5827
1.000
FORMULA: 1000*(1+T)= 1324.5827
= 1245.770002
T = 24.58% 32.46%
R = 24.58%
AIM II VALUE
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.119804 123.15569
1 FEE 31-Dec-99 0.568228 10.411329 0.05458 0.07
RESULTING VALUE 31-Dec-99 10.411329 123.10111 1281.6462
1.000
FORMULA: 1000*(1+T)= 1281.6462
= 1205.388223
T = 20.54% 28.16%
R = 20.54%
AIM II INTL
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.281393 137.33635
1 FEE 31-Dec-99 0.568228 11.143988 0.05099 0.07
RESULTING VALUE 31-Dec-99 11.143988 137.28537 1529.9064
1.000
FORMULA: 1000*(1+T)= 1529.9064
= 1438.877005
T = 43.89% 52.99%
R = 43.89%
AIM II GROW
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.933060 126.05476
1 FEE 31-Dec-99 0.568228 10.589876 0.05366 0.07
RESULTING VALUE 31-Dec-99 10.589876 126.00110 1334.3360
1.000
FORMULA: 1000*(1+T)= 1334.3360
= 1254.943053
T = 25.49% 33.43%
R = 25.49%
AIM II CAP
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.577409 131.97123
1 FEE 31-Dec-99 0.568228 10.816651 0.05253 0.07
RESULTING VALUE 31-Dec-99 10.816651 131.91870 1426.9185
1.000
FORMULA: 1000*(1+T)= 1426.9185
= 1342.016865
T = 34.20% 42.69%
R = 34.20%
AIM II BALANCED
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.736218 114.46601
1 FEE 31-Dec-99 0.568228 10.288209 0.05523 0.07
RESULTING VALUE 31-Dec-99 10.288209 114.41078 1177.0820
1.000
FORMULA: 1000*(1+T)= 1177.0820
= 1107.045602
T = 10.70% 17.71%
R = 10.70%
AIM II HIGH YIELD
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.188786 108.82831
1 FEE 31-Dec-99 0.568228 10.024814 0.05668 0.07
RESULTING VALUE 31-Dec-99 10.024814 108.77162 1090.4153
1.000
FORMULA: 1000*(1+T)= 1090.4153
= 1025.535588
T = 2.55% 9.04%
R = 2.55%
AIM II CAPITAL DEVELOPMENT
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.415570 118.82737
1 FEE 31-Dec-99 0.568228 10.724213 0.05299 0.07
RESULTING VALUE 31-Dec-99 10.724213 118.77438 1273.7618
1.000
FORMULA: 1000*(1+T)= 1273.7618
= 1197.973008
T = 19.80% 27.38%
R = 19.80%
AIM II AGGRESSIVE GROWTH
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.595100 131.66383
1 FEE 31-Dec-99 0.568228 10.846135 0.05239 0.07
RESULTING VALUE 31-Dec-99 10.846135 131.61144 1427.4755
1.000
FORMULA: 1000*(1+T)= 1427.4755
= 1342.540661
T = 34.25% 42.75%
R = 34.25%
AIM II BLUE CHIP
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.568228 9.750155 0.05828 0.07
RESULTING VALUE 31-Dec-99 9.750155 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II DENT DEMO
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.568228 9.750155 0.05828 0.07
RESULTING VALUE 31-Dec-99 9.750155 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II TELECOMMUNICATIONS
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 15.761147 63.44716
1 FEE 31-Dec-99 0.568228 32.135635 0.01768 0.07
RESULTING VALUE 31-Dec-99 32.135635 63.42948 2038.3465
1.000
FORMULA: 1000*(1+T)= 2038.3465
= 1917.064868
T = 91.71% 103.83%
R = 91.71%
AIM II GLOBAL G&I
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 13.380010 74.73836
1 FEE 31-Dec-99 0.568228 13.188357 0.04309 0.07
RESULTING VALUE 31-Dec-99 13.188357 74.69527 985.1079
1.000
FORMULA: 1000*(1+T)= 985.1079
= 926.494005
T = -7.35% -1.49%
R = -7.35%
5 Yr Ago: 12/31/94
4 yr Ago: 12/29/95
3 yr ago: 12/31/96
2 yr ago: 12/31/97
1 yr ago: 12/31/98
Date: 12/31/99
<PAGE>
Standardized
- -------------------------------------------------------------------------------
AIM II MM
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 8.103989 123.39602
1 FEE 29-Dec-95 0.568228 8.697981 0.06533 0.07
2 FEE 31-Dec-96 0.568228 9.005313 0.06310 0.06
3 FEE 31-Dec-97 0.568228 9.346051 0.06080 0.05
4 FEE 31-Dec-98 0.568228 9.691953 0.05863 0.04
5 FEE 31-Dec-99 0.568228 10.017403 0.05672 0.03
RESULTING VALUE 31-Dec-99 10.017403 123.21987 1234.3431
5.000
FORMULA: 1000*(1+T)= 1234.3431
= 1202.867341
T = 3.76% 4.30%
R = 20.29%
AIM II GOV
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.777417 128.57739
1 FEE 29-Dec-95 0.568228 8.872036 0.06405 0.07
2 FEE 31-Aug-95 0.568228 8.499954 0.06685 0.06
3 FEE 31-Dec-97 0.568228 9.562949 0.05942 0.05
4 FEE 31-Dec-98 0.568228 10.169848 0.05587 0.04
5 FEE 31-Dec-99 0.568228 9.906311 0.05736 0.03
RESULTING VALUE 31-Dec-99 9.906311 128.40474 1272.0172
5.000
FORMULA: 1000*(1+T)= 1272.0172
= 1239.580803
T = 4.39% 4.93%
R = 23.96%
AIM II DINC
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.742307 129.16047
1 FEE 29-Dec-95 0.568228 9.096258 0.06247 0.07
2 FEE 31-Aug-95 0.568228 8.668986 0.06555 0.06
3 FEE 31-Dec-97 0.568228 10.682627 0.05319 0.05
4 FEE 31-Dec-98 0.568228 10.217762 0.05561 0.04
5 FEE 31-Dec-99 0.568228 9.892329 0.05744 0.03
RESULTING VALUE 31-Dec-99 9.892329 128.99422 1276.0532
5.000
FORMULA: 1000*(1+T)= 1276.0532
= 1243.513859
T = 4.46% 5.00%
R = 24.35%
AIM II GUTL
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.258548 234.82181
1 FEE 29-Dec-95 0.568228 5.327758 0.10665 0.07
2 FEE 31-Aug-95 0.568228 4.826299 0.11774 0.06
3 FEE 31-Dec-97 0.568228 7.075791 0.08031 0.05
4 FEE 31-Dec-98 0.568228 7.945619 0.07151 0.04
5 FEE 31-Dec-99 0.568228 10.475409 0.05424 0.03
RESULTING VALUE 31-Dec-99 10.475409 234.61574 2457.6958
5.000
FORMULA: 1000*(1+T)= 2457.6958
= 2395.024575
T = 19.09% 19.70%
R = 139.50%
AIM II GI
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.368129 296.90075
1 FEE 29-Dec-95 0.568228 4.450560 0.12768 0.07
2 FEE 31-Aug-95 0.568228 4.248153 0.13376 0.06
3 FEE 31-Dec-97 0.568228 6.538591 0.08690 0.05
4 FEE 31-Dec-98 0.568228 8.123363 0.06995 0.04
5 FEE 31-Dec-99 0.568228 10.764682 0.05279 0.03
RESULTING VALUE 31-Dec-99 10.764682 296.69111 3193.7854
5.000
FORMULA: 1000*(1+T)= 3193.7854
= 3112.343845
T = 25.49% 26.14%
R = 211.23%
AIM II VALUE
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.501424 285.59812
1 FEE 29-Dec-95 0.568228 4.709221 0.12066 0.07
2 FEE 31-Aug-95 0.568228 4.624319 0.12288 0.06
3 FEE 31-Dec-97 0.568228 6.527490 0.08705 0.05
4 FEE 31-Dec-98 0.568228 8.119804 0.06998 0.04
5 FEE 31-Dec-99 0.568228 10.411329 0.05458 0.03
RESULTING VALUE 31-Dec-99 10.411329 285.38651 2971.2529
5.000
FORMULA: 1000*(1+T)= 2971.2529
= 2895.485922
T = 23.69% 24.33%
R = 189.55%
AIM II INTL
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.449418 224.74850
1 FEE 29-Dec-95 0.568228 5.149155 0.11035 0.07
2 FEE 31-Aug-95 0.568228 4.936327 0.11511 0.06
3 FEE 31-Dec-97 0.568228 6.440404 0.08823 0.05
4 FEE 31-Dec-98 0.568228 7.281393 0.07804 0.04
5 FEE 31-Dec-99 0.568228 11.143988 0.05099 0.03
RESULTING VALUE 31-Dec-99 11.143988 224.53124 2502.1734
5.000
FORMULA: 1000*(1+T)= 2502.1734
= 2438.368007
T = 19.51% 20.13%
R = 143.84%
AIM II GROW
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.309347 302.17440
1 FEE 29-Dec-95 0.568228 4.402537 0.12907 0.07
2 FEE 31-Aug-95 0.568228 4.327406 0.13131 0.06
3 FEE 31-Dec-97 0.568228 6.426166 0.08842 0.05
4 FEE 31-Dec-98 0.568228 7.933060 0.07163 0.04
5 FEE 31-Dec-99 0.568228 10.589876 0.05366 0.03
RESULTING VALUE 31-Dec-99 10.589876 301.96069 3197.7263
5.000
FORMULA: 1000*(1+T)= 3197.7263
= 3116.184256
T = 25.52% 26.17%
R = 211.62%
AIM II CAP
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.804356 262.85661
1 FEE 29-Dec-95 0.568228 5.095534 0.11151 0.07
2 FEE 31-Aug-95 0.568228 5.134778 0.11066 0.06
3 FEE 31-Dec-97 0.568228 6.625557 0.08576 0.05
4 FEE 31-Dec-98 0.568228 7.577409 0.07499 0.04
5 FEE 31-Dec-99 0.568228 10.816651 0.05253 0.03
RESULTING VALUE 31-Dec-99 10.816651 262.64332 2840.9212
5.000
FORMULA: 1000*(1+T)= 2840.9212
= 2768.4777
T = 22.59% 23.22%
R = 176.85%
AIM II Balanced
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 8.736218 0.06504 0.04
5 FEE 31-Dec-99 0.568228 10.288209 0.05523 0.03
RESULTING VALUE 31-Dec-99 10.288209 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II High Yield
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 9.188786 0.06184 0.04
5 FEE 31-Dec-99 0.568228 10.024814 0.05668 0.03
RESULTING VALUE 31-Dec-99 10.024814 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Cap Dev
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 8.415570 0.06752 0.04
5 FEE 31-Dec-99 0.568228 10.724213 0.05299 0.03
RESULTING VALUE 31-Dec-99 10.724213 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Aggr Gro
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 7.595100 0.07482 0.04
5 FEE 31-Dec-99 0.568228 10.846135 0.05239 0.03
RESULTING VALUE 31-Dec-99 10.846135 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II BLUE CHIP
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 #N/A #N/A 0.04
5 FEE 31-Dec-99 0.568228 9.750155 0.05828 0.03
RESULTING VALUE 31-Dec-99 9.750155 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II DENT DEMO
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 #N/A #N/A 0.04
5 FEE 31-Dec-99 0.568228 9.750155 0.05828 0.03
RESULTING VALUE 31-Dec-99 9.750155 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II TELECOMMUNICATIONS
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 8.043664 124.32145
1 FEE 29-Dec-95 0.568228 9.819160 0.05787 0.07
2 FEE 31-Aug-95 0.568228 10.194631 0.05574 0.06
3 FEE 31-Dec-97 0.568228 13.079474 0.04344 0.05
4 FEE 31-Dec-98 0.568228 15.761147 0.03605 0.04
5 FEE 31-Dec-99 0.568228 32.135635 0.01768 0.03
RESULTING VALUE 31-Dec-99 32.135635 124.22427 3992.0259
5.000
FORMULA: 1000*(1+T)= 3992.0259
= 3890.229224
T = 31.22% 31.90%
R = 289.02%
AIM II GLOBAL G&I
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.547923 132.48677
1 FEE 29-Dec-95 0.568228 8.605100 0.06603 0.07
2 FEE 31-Aug-95 0.568228 7.958778 0.07140 0.06
3 FEE 31-Dec-97 0.568228 11.334336 0.05013 0.05
4 FEE 31-Dec-98 0.568228 13.380010 0.04247 0.04
5 FEE 31-Dec-99 0.568228 13.188357 0.04309 0.03
RESULTING VALUE 31-Dec-99 13.188357 132.35108 1745.4933
5.000
FORMULA: 1000*(1+T)= 1745.4933
= 1700.983254
T = 11.21% 11.79%
R = 70.10%
AIM II Capital Appreciation
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 3.173736 315.08608
1 FEE 05-May-94 0.568228 3.746543 0.15167 0.07
2 FEE 05-May-95 0.568228 4.181585 0.13589 0.06
3 FEE 05-May-96 0.568228 5.664374 0.10032 0.05
4 FEE 05-May-97 0.568228 5.944885 0.09558 0.04
5 FEE 05-May-98 0.568228 7.512034 0.07564 0.03
6 FEE 05-May-99 0.568228 7.783287 0.07301 0.02
7 FEE 31-Dec-99 0.568228 10.816651 0.05253 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.816651 314.40144 3400.7707
6.656
FORMULA: 1000*(1+T)= 3400.7707
= 3371.86417
T = 20.04% 20.19%
R = 237.19%
AIM II Growth
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 3.133164 319.16614
1 FEE 05-May-94 0.568228 3.295515 0.17242 0.07
2 FEE 05-May-95 0.568228 3.687918 0.15408 0.06
3 FEE 05-May-96 0.568228 4.662132 0.12188 0.05
4 FEE 05-May-97 0.568228 5.495367 0.10340 0.04
5 FEE 05-May-98 0.568228 7.407480 0.07671 0.03
6 FEE 05-May-99 0.568228 8.464773 0.06713 0.02
7 FEE 31-Dec-99 0.568228 10.589876 0.05366 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.589876 318.41686 3371.9951
6.656
FORMULA: 1000*(1+T)= 3371.9951
= 3343.333097
T = 19.88% 20.04%
R = 234.33%
AIM II International Equity
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 3.886255 257.31713
1 FEE 05-May-94 0.568228 4.511222 0.12596 0.07
2 FEE 05-May-95 0.568228 4.668627 0.12171 0.06
3 FEE 05-May-96 0.568228 5.599015 0.10149 0.05
4 FEE 05-May-97 0.568228 6.189494 0.09181 0.04
5 FEE 05-May-98 0.568228 7.587177 0.07489 0.03
6 FEE 05-May-99 0.568228 7.393154 0.07686 0.02
7 FEE 31-Dec-99 0.568228 11.143988 0.05099 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 11.143988 256.67343 2860.3655
6.656
FORMULA: 1000*(1+T)= 2860.3655
= 2836.05244
T = 16.96% 17.11%
R = 183.61%
AIM II Value
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 2.994888 333.90234
1 FEE 05-May-94 0.568228 3.483223 0.16313 0.07
2 FEE 05-May-95 0.568228 3.942477 0.14413 0.06
3 FEE 05-May-96 0.568228 4.755127 0.11950 0.05
4 FEE 05-May-97 0.568228 5.727623 0.09921 0.04
5 FEE 05-May-98 0.568228 7.375191 0.07705 0.03
6 FEE 05-May-99 0.568228 8.835246 0.06431 0.02
7 FEE 31-Dec-99 0.568228 10.411329 0.05458 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.411329 333.18043 3468.8511
6.656
FORMULA: 1000*(1+T)= 3468.8511
= 3439.365881
T = 20.39% 20.55%
R = 243.94%
AIM II Growth & Income
02-May-94
TO NO. YEARS 5.665
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 3.397609 294.32461
1 FEE 02-May-95 0.568228 3.756532 0.15126 0.07
2 FEE 02-May-96 0.568228 4.692933 0.12108 0.06
3 FEE 02-May-97 0.568228 5.581195 0.10181 0.05
4 FEE 02-May-98 0.568228 7.338563 0.07743 0.04
5 FEE 02-May-99 0.568228 8.878957 0.06400 0.03
6 FEE 31-Dec-99 0.568228 10.764682 0.05279 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.764682 293.75624 3162.1924
5.665
FORMULA: 1000*(1+T)= 3162.1924
= 3108.435139
T = 22.17% 22.54%
R = 210.84%
AIM II Global Utilities
02-May-94
TO NO. YEARS 5.665
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 4.424737 226.00214
1 FEE 02-May-95 0.568228 4.494436 0.12643 0.07
2 FEE 02-May-96 0.568228 5.290481 0.10741 0.06
3 FEE 02-May-97 0.568228 5.951915 0.09547 0.05
4 FEE 02-May-98 0.568228 7.751776 0.07330 0.04
5 FEE 02-May-99 0.568228 8.157860 0.06965 0.03
6 FEE 31-Dec-99 0.568228 10.475409 0.05424 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.475409 225.47563 2361.9495
5.665
FORMULA: 1000*(1+T)= 2361.9495
= 2321.796314
T = 16.03% 16.38%
R = 132.18%
AIM II Diversified Income
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 7.857510 127.26678
1 FEE 05-May-94 0.568228 7.851345 0.07237 0.07
2 FEE 05-May-95 0.568228 8.402597 0.06763 0.06
3 FEE 05-May-96 0.568228 8.992239 0.06319 0.05
4 FEE 05-May-97 0.568228 9.878001 0.05752 0.04
5 FEE 05-May-98 0.568228 11.011988 0.05160 0.03
6 FEE 05-May-99 0.568228 10.228171 0.05556 0.02
7 FEE 31-Dec-99 0.568228 9.892329 0.05744 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.892329 126.84147 1254.7575
6.656
FORMULA: 1000*(1+T)= 1254.7575
= 1244.092082
T = 3.34% 3.47%
R = 24.41%
AIM II Government Securities
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 7.971565 125.44588
1 FEE 05-May-94 0.568228 7.820387 0.07266 0.07
2 FEE 05-May-95 0.568228 8.281184 0.06862 0.06
3 FEE 05-May-96 0.568228 8.528432 0.06663 0.05
4 FEE 05-May-97 0.568228 9.017054 0.06302 0.04
5 FEE 05-May-98 0.568228 9.698926 0.05859 0.03
6 FEE 05-May-99 0.568228 10.061278 0.05648 0.02
7 FEE 31-Dec-99 0.568228 9.906311 0.05736 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.906311 125.00253 1238.3139
6.656
FORMULA: 1000*(1+T)= 1238.3139
= 1227.788223
T = 3.13% 3.26%
R = 22.78%
AIM II Money Market
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 8.099047 123.47132
1 FEE 05-May-94 0.568228 8.103989 0.07012 0.07
2 FEE 05-May-95 0.568228 8.103989 0.07012 0.06
3 FEE 05-May-96 0.568228 8.804104 0.06454 0.05
4 FEE 05-May-97 0.568228 9.115635 0.06234 0.04
5 FEE 05-May-98 0.568228 9.466158 0.06003 0.03
6 FEE 05-May-99 0.568228 9.798963 0.05799 0.02
7 FEE 31-Dec-99 0.568228 10.017403 0.05672 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.017403 123.02947 1232.4358
6.656
FORMULA: 1000*(1+T)= 1232.4358
= 1221.960083
T = 3.06% 3.19%
R = 22.20%
AIM II Balanced
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 7.910616 126.41241
1 FEE 01-May-99 0.568228 9.105065 0.06241 0.07
2 FEE 31-Dec-99 0.568228 10.288209 0.05523 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.288209 126.29477 1299.3470
1.667
FORMULA: 1000*(1+T)= 1299.3470
= 1233.080303
T = 13.39% 17.01%
R = 23.31%
AIM II High Yield
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.495811 95.27610
1 FEE 01-May-99 0.568228 9.832753 0.05779 0.07
2 FEE 31-Dec-99 0.568228 10.024814 0.05668 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.024814 95.16163 953.9777
1.667
FORMULA: 1000*(1+T)= 953.9777
= 905.324802
T = -5.79% -2.79%
R = -9.47%
AIM II Capital Development
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 9.217215 108.49265
1 FEE 01-May-99 0.568228 7.961142 0.07138 0.07
2 FEE 31-Dec-99 0.568228 10.724213 0.05299 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.724213 108.36828 1162.1646
1.667
FORMULA: 1000*(1+T)= 1162.1646
= 1102.894209
T = 6.05% 9.43%
R = 10.29%
AIM II Aggressive Growth
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 7.778058 128.56680
1 FEE 01-May-99 0.568228 7.462908 0.07614 0.07
2 FEE 31-Dec-99 0.568228 10.846135 0.05239 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.846135 128.43827 1393.0588
1.667
FORMULA: 1000*(1+T)= 1393.0588
= 1322.0128
T = 18.23% 22.00%
R = 32.20%
AIM II BLUE CHIP
30-Dec-99
TO NO. YEARS 0.003
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Dec-99 1000.00 9.750502 102.55882
1 FEE 31-Dec-99 0.568228 9.750155 0.05828 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.750155 102.50054 999.3962
0.003
FORMULA: 1000*(1+T)= 999.3962
= 939.9320844
T = -100.00% -19.80%
R = -6.01%
AIM II DENT DEMO
30-Dec-99
TO NO. YEARS 0.003
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Dec-99 1000.00 9.750502 102.55882
1 FEE 31-Dec-99 0.568228 9.750155 0.05828 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.750155 102.50054 999.3962
0.003
FORMULA: 1000*(1+T)= 999.3962
= 939.9320844
T = -100.00% -19.80%
R = -6.01%
AIM II TELECOMMUNICATIONS
18-Oct-93
TO NO. YEARS 6.201
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 18-Oct-93 1000.00 7.000899 142.83880
1 FEE 18-Oct-94 0.568228 8.007203 0.07096 0.07
2 FEE 18-Oct-95 0.568228 10.101294 0.05625 0.06
3 FEE 18-Oct-96 0.568228 11.277279 0.05039 0.05
4 FEE 18-Oct-97 0.568228 14.496736 0.03920 0.04
5 FEE 18-Oct-98 0.568228 12.257529 0.04636 0.03
6 FEE 18-Oct-99 0.568228 19.688310 0.02886 0.02
7 FEE 31-Dec-99 0.568228 32.135635 0.01768 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 32.135635 142.52909 4580.2629
6.201
FORMULA: 1000*(1+T)= 4580.2629
= 4541.330707
T = 27.64% 27.81%
R = 354.13%
AIM II GLOBAL G&I
10-Feb-93
TO NO. YEARS 6.886
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 10-Feb-93 1000.00 6.762344 147.87771
1 FEE 10-Feb-94 0.568228 7.899739 0.07193 0.07
2 FEE 10-Feb-95 0.568228 7.594932 0.07482 0.06
3 FEE 10-Feb-96 0.568228 8.674527 0.06551 0.05
4 FEE 10-Feb-97 0.568228 9.913581 0.05732 0.04
5 FEE 10-Feb-98 0.568228 11.676815 0.04866 0.03
6 FEE 10-Feb-99 0.568228 12.911905 0.04401 0.02
7 FEE 31-Dec-99 0.568228 13.188357 0.04309 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.188357 147.47238 1944.9184
6.886
FORMULA: 1000*(1+T)= 1944.9184
= 1928.386581
T = 10.01% 10.14%
R = 92.84%
<PAGE>
AIM II Capital Appreciation
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.929035 168.66152
1 FEE 14-Oct-97 0.568228 7.352041 0.07729 0.07
2 FEE 14-Oct-98 0.568228 5.805882 0.09787 0.06
3 FEE 14-Oct-99 0.568228 8.033505 0.07073 0.05
4 FEE 31-Dec-99 0.568228 10.817707 0.05253 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.817707 168.36310 1821.3027
3.211
FORMULA: 1000*(1+T)= 1821.3027
= 1759.378391
T = 19.23% 20.53%
R = 75.94%
AIM II Growth
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.013643 199.45576
1 FEE 14-Oct-97 0.568228 6.663344 0.08528 0.07
2 FEE 14-Oct-98 0.568228 6.310852 0.09004 0.06
3 FEE 14-Oct-99 0.568228 8.565234 0.06634 0.05
4 FEE 31-Dec-99 0.568228 10.590913 0.05365 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.590913 199.16045 2109.2911
3.211
FORMULA: 1000*(1+T)= 2109.2911
= 2037.5752
T = 24.81% 26.16%
R = 103.76%
AIM II International Equity
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.750147 173.90859
1 FEE 14-Oct-97 0.568228 7.013190 0.08102 0.07
2 FEE 14-Oct-98 0.568228 6.415827 0.08857 0.06
3 FEE 14-Oct-99 0.568228 8.181887 0.06945 0.05
4 FEE 31-Dec-99 0.568228 11.145070 0.05098 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 11.145070 173.61857 1934.9911
3.211
FORMULA: 1000*(1+T)= 1934.9911
= 1869.201439
T = 21.50% 22.82%
R = 86.92%
AIM II Value
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.054213 197.85473
1 FEE 14-Oct-97 0.568228 6.803565 0.08352 0.07
2 FEE 14-Oct-98 0.568228 6.501819 0.08740 0.06
3 FEE 14-Oct-99 0.568228 8.766226 0.06482 0.05
4 FEE 31-Dec-99 0.568228 10.412352 0.05457 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.412352 197.56442 2057.1103
3.211
FORMULA: 1000*(1+T)= 2057.1103
= 1987.168587
T = 23.84% 25.18%
R = 98.72%
AIM II Growth & Income
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.053803 197.87079
1 FEE 14-Oct-97 0.568228 6.827160 0.08323 0.07
2 FEE 14-Oct-98 0.568228 6.282558 0.09045 0.06
3 FEE 14-Oct-99 0.568228 8.667688 0.06556 0.05
4 FEE 31-Dec-99 0.568228 10.765735 0.05278 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.765735 197.57878 2127.0807
3.211
FORMULA: 1000*(1+T)= 2127.0807
= 2054.759947
T = 25.14% 26.49%
R = 105.48%
AIM II Global Utilities
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 5.473996 182.68190
1 FEE 14-Oct-97 0.568228 6.719965 0.08456 0.07
2 FEE 14-Oct-98 0.568228 7.175306 0.07919 0.06
3 FEE 14-Oct-99 0.568228 8.591440 0.06614 0.05
4 FEE 31-Dec-99 0.568228 10.476433 0.05424 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.476433 182.39777 1910.8781
3.211
FORMULA: 1000*(1+T)= 1910.8781
= 1845.90829
T = 21.03% 22.34%
R = 84.59%
AIM II Diversified Income
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 9.500941 105.25273
1 FEE 14-Oct-97 0.568228 10.533900 0.05394 0.07
2 FEE 14-Oct-98 0.568228 10.642842 0.05339 0.06
3 FEE 14-Oct-99 0.568228 9.796289 0.05800 0.05
4 FEE 31-Dec-99 0.568228 9.893308 0.05744 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.893308 105.02996 1039.0937
3.211
FORMULA: 1000*(1+T)= 1039.0937
= 1003.764536
T = 0.12% 1.20%
R = 0.38%
AIM II Government Securities
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 8.777217 113.93132
1 FEE 14-Oct-97 0.568228 9.337925 0.06085 0.07
2 FEE 14-Oct-98 0.568228 10.116370 0.05617 0.06
3 FEE 14-Oct-99 0.568228 9.874081 0.05755 0.05
4 FEE 31-Dec-99 0.568228 9.907293 0.05735 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.907293 113.69940 1126.4532
3.211
FORMULA: 1000*(1+T)= 1126.4532
= 1088.153832
T = 2.67% 3.78%
R = 8.82%
AIM II Money Market
14-Oct-96
TO NO. YEARS 3.211
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 14-Oct-96 1000.00 8.880309 112.60869
1 FEE 14-Oct-97 0.568228 9.228826 0.06157 0.07
2 FEE 14-Oct-98 0.568228 9.601780 0.05918 0.06
3 FEE 14-Oct-99 0.568228 9.934489 0.05720 0.05
4 FEE 31-Dec-99 0.568228 10.018392 0.05672 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.018392 112.37403 1125.8071
3.211
FORMULA: 1000*(1+T)= 1125.8071
= 1087.529675
T = 2.65% 3.76%
R = 8.75%
AIM II Balanced
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 9.006303 111.03336
1 FEE 31-Dec-99 0.568228 10.289223 0.05523 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.289223 110.97813 1141.8787
0.183
FORMULA: 1000*(1+T)= 1141.8787
= 1073.936923
T = 47.53% 106.12%
R = 7.39%
AIM II High Yield
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 9.500655 105.25591
1 FEE 31-Dec-99 0.568228 10.025805 0.05668 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.025805 105.19923 1054.7069
0.183
FORMULA: 1000*(1+T)= 1054.7069
= 991.9518694
T = -4.31% 33.69%
R = -0.80%
AIM II Capital Development
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 8.360661 119.60777
1 FEE 31-Dec-99 0.568228 10.725266 0.05298 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.725266 119.55478 1282.2568
0.183
FORMULA: 1000*(1+T)= 1282.2568
= 1205.962536
T = 177.58% 287.82%
R = 20.60%
AIM II Aggressive Growth
25-Oct-99
TO NO. YEARS 0.183
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 25-Oct-99 1000.00 8.489265 117.79582
1 FEE 31-Dec-99 0.568228 10.847192 0.05238 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.847192 117.74344 1277.1857
0.183
FORMULA: 1000*(1+T)= 1277.1857
= 1201.193113
T = 171.65% 279.53%
R = 20.12%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
NON Standardized
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Today 12/31/99 11/30/99 12/31/98 12/31/98 12/31/97 12/31/96 12/29/95 12/31/94
One Month Ago 11/30/99
End of last year 12/31/98
One year Ago 12/31/98
Two Years Ago 12/31/97
Three Years ago 12/31/96
Four Years Ago 12/29/95
Five Years Ago 12/31/94
AUVS
Today One Month End of last One year Ago Two Years Ago Three Inception Five
Ago Year Years Ago Years Ago
-----------------------------------------------------------------------------------------------------------------
AIM II CAP 10.817707 9.287871951 7.563026339 7.563026339 6.599774326 5.878826821 5.929034632 3.766866614
AIM II GROW 10.590913 9.624636417 7.918004674 7.918004674 6.401167828 5.101298631 5.013643044 3.276746249
AIM II INTL 11.14507 9.512524396 7.267580803 7.267580803 6.415355787 6.065622414 5.75014725 4.405584573
AIM II VALUE 10.412352 9.823603662 8.104394768 8.104394768 6.502096858 5.314944098 5.054213218 3.466932287
AIM II G&I 10.765735 9.649064944 8.107941363 8.107941363 6.513151684 5.237980893 5.053803044 3.334949746
AIM II GUTL 10.476433 9.519998309 7.930535319 7.930535319 7.048255822 5.858651305 5.473995972 4.216590883
AIM II DINC 9.8933077 9.865480028 10.19835351 10.19835351 10.64103201 9.835136249 9.500940819 7.66600436
AIM II GOV 9.9072927 9.949985384 10.15053137 10.15053137 9.5257226 8.904757762 8.777217482 7.700769381
AIM II MM 10.018392 9.983935732 9.673546258 9.673546258 9.30966499 8.952332703 8.880308987 7.998782761
AIM II BAL 10.289223 9.647465379 8.719633396 8.719633396 #N/A #N/A 9.006302643 #N/A
AIM II HY 10.025805 9.747137447 9.171341175 9.171341175 #N/A #N/A 9.500654523 #N/A
AIM II CAPD 10.725266 9.471209805 8.399595295 8.399595295 #N/A #N/A 8.360661195 #N/A
AIM II AGG 10.847192 9.493440154 7.580686797 7.580686797 #N/A #N/A 8.489265422 #N/A
Returns
MTD YTD One Year Three Year Tot. 3 Yr. AVG Inception Tot. Inception AVG Five Year Avg
--- --- -------- --------------- --------- -------------- ------------- -------------
AIM II CAP 16.47% 43.03% 43.03% 84.01% 22.54% 82.45% 20.59% 14.96%
AIM II GROW 10.04% 33.76% 33.76% 107.61% 27.57% 111.24% 26.22% 19.30%
AIM II INTL 17.16% 53.35% 53.35% 83.74% 22.48% 93.82% 22.88% 10.53%
AIM II VALUE 5.99% 28.48% 28.48% 95.91% 25.13% 106.01% 25.24% 18.51%
AIM II G&I 11.57% 32.78% 32.78% 105.53% 27.14% 113.02% 26.55% 19.44%
AIM II GUTL 10.05% 32.10% 32.10% 78.82% 21.38% 91.39% 22.40% 13.47%
AIM II DINC 0.28% -2.99% -2.99% 0.59% 0.20% 4.13% 1.27% 5.87%
AIM II GOV -0.43% -2.40% -2.40% 11.26% 3.62% 12.88% 3.84% 5.68%
AIM II MM 0.35% 3.56% 3.56% 11.91% 3.82% 12.82% 3.83% 3.88%
AIM II BAL 6.65% 18.00% 18.00% #N/A #N/A 14.24% 106.68% #N/A
AIM II HY 2.86% 9.32% 9.32% #N/A #N/A 5.53% 34.08% #N/A
AIM II CAPD 13.24% 27.69% 27.69% #N/A #N/A 28.28% 288.75% #N/A
AIM II AGG 14.26% 43.09% 43.09% #N/A #N/A 27.78% 280.45% #N/A
</TABLE>
<PAGE>
ADJUSTED HISTORICAL
- ------------------------------------------------------------------------------
1yr ago: 12/31/98
Date: 12/31/99
<TABLE>
<CAPTION>
AIM II MM
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
<S> <C> <C> <C> <C> <C> <C> <C>
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.673546 103.37471
1 FEE 31-Dec-99 0.568228 10.018392 0.05672 0.07
RESULTING VALUE 31-Dec-99 10.018392 103.31799 1035.0801
1.000
FORMULA: 1000*(1+T)= 1035.0801
= 1035.08015
T = 3.51% 3.51%
R = 3.51%
AIM II GOV
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.150531 98.51701
1 FEE 31-Dec-99 0.568228 9.907293 0.05735 0.07
RESULTING VALUE 31-Dec-99 9.907293 98.45966 975.4686
1.000
FORMULA: 1000*(1+T)= 975.4686
= 975.4686284
T = -2.45% -2.45%
R = -2.45%
AIM II DINC
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 10.198354 98.05504
1 FEE 31-Dec-99 0.568228 9.893308 0.05744 0.07
RESULTING VALUE 31-Dec-99 9.893308 97.99761 969.5205
1.000
FORMULA: 1000*(1+T)= 969.5205
= 969.5204928
T = -3.05% -3.05%
R = -3.05%
AIM II GUTL
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.930535 126.09489
1 FEE 31-Dec-99 0.568228 10.476433 0.05424 0.07
RESULTING VALUE 31-Dec-99 10.476433 126.04065 1320.4565
1.000
FORMULA: 1000*(1+T)= 1320.4565
= 1241.889358
T = 24.19% 32.05%
R = 24.19%
AIM II GI
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.107941 123.33587
1 FEE 31-Dec-99 0.568228 10.765735 0.05278 0.07
RESULTING VALUE 31-Dec-99 10.765735 123.28309 1327.2330
1.000
FORMULA: 1000*(1+T)= 1327.2330
= 1248.262664
T = 24.83% 32.72%
R = 24.83%
AIM II VALUE
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.104395 123.38984
1 FEE 31-Dec-99 0.568228 10.412352 0.05457 0.07
RESULTING VALUE 31-Dec-99 10.412352 123.33527 1284.2103
1.000
FORMULA: 1000*(1+T)= 1284.2103
= 1207.799747
T = 20.78% 28.42%
R = 20.78%
AIM II INTL
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.267581 137.59737
1 FEE 31-Dec-99 0.568228 11.145070 0.05098 0.07
RESULTING VALUE 31-Dec-99 11.145070 137.54638 1532.9641
1.000
FORMULA: 1000*(1+T)= 1532.9641
= 1441.752768
T = 44.18% 53.30%
R = 44.18%
AIM II GROW
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.918005 126.29444
1 FEE 31-Dec-99 0.568228 10.590913 0.05365 0.07
RESULTING VALUE 31-Dec-99 10.590913 126.24079 1337.0053
1.000
FORMULA: 1000*(1+T)= 1337.0053
= 1257.453471
T = 25.75% 33.70%
R = 25.75%
AIM II CAP
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.563026 132.22220
1 FEE 31-Dec-99 0.568228 10.817707 0.05253 0.07
RESULTING VALUE 31-Dec-99 10.817707 132.16967 1429.7728
1.000
FORMULA: 1000*(1+T)= 1429.7728
= 1344.701318
T = 34.47% 42.98%
R = 34.47%
AIM II BALANCED
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.719633 114.68372
1 FEE 31-Dec-99 0.568228 10.289223 0.05523 0.07
RESULTING VALUE 31-Dec-99 10.289223 114.62850 1179.4381
1.000
FORMULA: 1000*(1+T)= 1179.4381
= 1109.261561
T = 10.93% 17.94%
R = 10.93%
AIM II HIGH YIELD
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 9.171341 109.03531
1 FEE 31-Dec-99 0.568228 10.025805 0.05668 0.07
RESULTING VALUE 31-Dec-99 10.025805 108.97863 1092.5985
1.000
FORMULA: 1000*(1+T)= 1092.5985
= 1027.588858
T = 2.76% 9.26%
R = 2.76%
AIM II CAPITAL DEVELOPMENT
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 8.399595 119.05335
1 FEE 31-Dec-99 0.568228 10.725266 0.05298 0.07
RESULTING VALUE 31-Dec-99 10.725266 119.00037 1276.3106
1.000
FORMULA: 1000*(1+T)= 1276.3106
= 1200.370139
T = 20.04% 27.63%
R = 20.04%
AIM II AGGRESSIVE GROWTH
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 7.580687 131.91417
1 FEE 31-Dec-99 0.568228 10.847192 0.05238 0.07
RESULTING VALUE 31-Dec-99 10.847192 131.86178 1430.3301
1.000
FORMULA: 1000*(1+T)= 1430.3301
= 1345.225439
T = 34.52% 43.03%
R = 34.52%
AIM II BLUE CHIP
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.568228 9.751068 0.05827 0.07
RESULTING VALUE 31-Dec-99 9.751068 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II DENT DEMO
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 #N/A #N/A
1 FEE 31-Dec-99 0.568228 9.751067 0.05827 0.07
RESULTING VALUE 31-Dec-99 9.751067 #N/A #N/A
1.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II TELECOMMUNICATIONS
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 15.731001 63.56875
1 FEE 31-Dec-99 0.568228 32.138264 0.01768 0.07
RESULTING VALUE 31-Dec-99 32.138264 63.55106 2042.4209
1.000
FORMULA: 1000*(1+T)= 2042.4209
= 1920.896833
T = 92.09% 104.24%
R = 92.09%
AIM II GLOBAL G&I
31-Dec-98
TO NO. YEARS 1.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-98 1000.00 13.354470 74.88129
1 FEE 31-Dec-99 0.568228 13.189537 0.04308 0.07
RESULTING VALUE 31-Dec-99 13.189537 74.83821 987.0813
1.000
FORMULA: 1000*(1+T)= 987.0813
= 928.350003
T = -7.16% -1.29%
R = -7.16%
5 Yr Ago: 12/31/94
4 yr Ago: 12/29/95
3 yr ago: 12/31/96
2 yr ago: 12/31/97
1 yr ago: 12/31/98
Date: 12/31/99
AIM II MM
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.998783 125.01902
1 FEE 29-Dec-95 0.568228 8.629440 0.06585 0.07
2 FEE 31-Dec-96 0.568228 8.952333 0.06347 0.06
3 FEE 31-Dec-97 0.568228 9.309665 0.06104 0.05
4 FEE 31-Dec-98 0.568228 9.673546 0.05874 0.04
5 FEE 31-Dec-99 0.568228 10.018392 0.05672 0.03
RESULTING VALUE 31-Dec-99 10.018392 124.84253 1250.7214
5.000
FORMULA: 1000*(1+T)= 1250.7214
= 1218.828038
T = 4.04% 4.58%
R = 21.88%
AIM II GOV
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.700769 129.85715
1 FEE 29-Dec-95 0.568228 8.802129 0.06456 0.07
2 FEE 31-Aug-95 0.568228 8.427438 0.06743 0.06
3 FEE 31-Dec-97 0.568228 9.525723 0.05965 0.05
4 FEE 31-Dec-98 0.568228 10.150531 0.05598 0.04
5 FEE 31-Dec-99 0.568228 9.907293 0.05735 0.03
RESULTING VALUE 31-Dec-99 9.907293 129.68417 1284.8190
5.000
FORMULA: 1000*(1+T)= 1284.8190
= 1252.05613
T = 4.60% 5.14%
R = 25.21%
AIM II DINC
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.666004 130.44605
1 FEE 29-Dec-95 0.568228 9.024579 0.06296 0.07
2 FEE 31-Aug-95 0.568228 8.595025 0.06611 0.06
3 FEE 31-Dec-97 0.568228 10.641032 0.05340 0.05
4 FEE 31-Dec-98 0.568228 10.198354 0.05572 0.04
5 FEE 31-Dec-99 0.568228 9.893308 0.05744 0.03
RESULTING VALUE 31-Dec-99 9.893308 130.27950 1288.8952
5.000
FORMULA: 1000*(1+T)= 1288.8952
= 1256.028342
T = 4.66% 5.21%
R = 25.60%
AIM II GUTL
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.216591 237.15841
1 FEE 29-Dec-95 0.568228 5.285790 0.10750 0.07
2 FEE 31-Aug-95 0.568228 4.785137 0.11875 0.06
3 FEE 31-Dec-97 0.568228 7.048256 0.08062 0.05
4 FEE 31-Dec-98 0.568228 7.930535 0.07165 0.04
5 FEE 31-Dec-99 0.568228 10.476433 0.05424 0.03
RESULTING VALUE 31-Dec-99 10.476433 236.95190 2482.4108
5.000
FORMULA: 1000*(1+T)= 2482.4108
= 2419.109367
T = 19.32% 19.94%
R = 141.91%
AIM II GI
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.334950 299.85459
1 FEE 29-Dec-95 0.568228 4.415508 0.12869 0.07
2 FEE 31-Aug-95 0.568228 4.211924 0.13491 0.06
3 FEE 31-Dec-97 0.568228 6.513152 0.08724 0.05
4 FEE 31-Dec-98 0.568228 8.107941 0.07008 0.04
5 FEE 31-Dec-99 0.568228 10.765735 0.05278 0.03
RESULTING VALUE 31-Dec-99 10.765735 299.64449 3225.8931
5.000
FORMULA: 1000*(1+T)= 3225.8931
= 3143.63278
T = 25.74% 26.40%
R = 214.36%
AIM II VALUE
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.466932 288.43944
1 FEE 29-Dec-95 0.568228 4.672132 0.12162 0.07
2 FEE 31-Aug-95 0.568228 4.584883 0.12394 0.06
3 FEE 31-Dec-97 0.568228 6.502097 0.08739 0.05
4 FEE 31-Dec-98 0.568228 8.104395 0.07011 0.04
5 FEE 31-Dec-99 0.568228 10.412352 0.05457 0.03
RESULTING VALUE 31-Dec-99 10.412352 288.22736 3001.1247
5.000
FORMULA: 1000*(1+T)= 3001.1247
= 2924.59606
T = 23.94% 24.58%
R = 192.46%
AIM II INTL
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 4.405585 226.98463
1 FEE 29-Dec-95 0.568228 5.108601 0.11123 0.07
2 FEE 31-Aug-95 0.568228 4.894232 0.11610 0.06
3 FEE 31-Dec-97 0.568228 6.415356 0.08857 0.05
4 FEE 31-Dec-98 0.568228 7.267581 0.07819 0.04
5 FEE 31-Dec-99 0.568228 11.145070 0.05098 0.03
RESULTING VALUE 31-Dec-99 11.145070 226.76689 2527.3329
5.000
FORMULA: 1000*(1+T)= 2527.3329
= 2462.885944
T = 19.75% 20.37%
R = 146.29%
AIM II GROW
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.276746 305.18079
1 FEE 29-Dec-95 0.568228 4.367863 0.13009 0.07
2 FEE 31-Aug-95 0.568228 4.290501 0.13244 0.06
3 FEE 31-Dec-97 0.568228 6.401168 0.08877 0.05
4 FEE 31-Dec-98 0.568228 7.918005 0.07176 0.04
5 FEE 31-Dec-99 0.568228 10.590913 0.05365 0.03
RESULTING VALUE 31-Dec-99 10.590913 304.96660 3229.8748
5.000
FORMULA: 1000*(1+T)= 3229.8748
= 3147.513036
T = 25.77% 26.43%
R = 214.75%
AIM II CAP
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 3.766867 265.47263
1 FEE 29-Dec-95 0.568228 5.055388 0.11240 0.07
2 FEE 31-Aug-95 0.568228 5.090972 0.11161 0.06
3 FEE 31-Dec-97 0.568228 6.599774 0.08610 0.05
4 FEE 31-Dec-98 0.568228 7.563026 0.07513 0.04
5 FEE 31-Dec-99 0.568228 10.817707 0.05253 0.03
RESULTING VALUE 31-Dec-99 10.817707 265.25888 2869.4928
5.000
FORMULA: 1000*(1+T)= 2869.4928
= 2796.320693
T = 22.83% 23.47%
R = 179.63%
AIM II Balanced
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 8.719633 0.06517 0.04
5 FEE 31-Dec-99 0.568228 10.289223 0.05523 0.03
RESULTING VALUE 31-Dec-99 10.289223 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II High Yield
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 9.171341 0.06196 0.04
5 FEE 31-Dec-99 0.568228 10.025805 0.05668 0.03
RESULTING VALUE 31-Dec-99 10.025805 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Cap Dev
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 8.399595 0.06765 0.04
5 FEE 31-Dec-99 0.568228 10.725266 0.05298 0.03
RESULTING VALUE 31-Dec-99 10.725266 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II Aggr Gro
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 7.580687 0.07496 0.04
5 FEE 31-Dec-99 0.568228 10.847192 0.05238 0.03
RESULTING VALUE 31-Dec-99 10.847192 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II BLUE CHIP
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 #N/A #N/A 0.04
5 FEE 31-Dec-99 0.568228 9.751068 0.05827 0.03
RESULTING VALUE 31-Dec-99 9.751068 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II DENT DEMO
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 #N/A #N/A
1 FEE 29-Dec-95 0.568228 #N/A #N/A 0.07
2 FEE 31-Aug-95 0.568228 #N/A #N/A 0.06
3 FEE 31-Dec-97 0.568228 #N/A #N/A 0.05
4 FEE 31-Dec-98 0.568228 #N/A #N/A 0.04
5 FEE 31-Dec-99 0.568228 9.751067 0.05827 0.03
RESULTING VALUE 31-Dec-99 9.751067 #N/A #N/A
5.000
FORMULA: 1000*(1+T)= #N/A
= #N/A
T = #N/A #N/A
R = #N/A
AIM II TELECOMMUNICATIONS
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.964334 125.55978
1 FEE 29-Dec-95 0.568228 9.741668 0.05833 0.07
2 FEE 31-Aug-95 0.568228 10.107523 0.05622 0.06
3 FEE 31-Dec-97 0.568228 13.028385 0.04361 0.05
4 FEE 31-Dec-98 0.568228 15.731001 0.03612 0.04
5 FEE 31-Dec-99 0.568228 32.138264 0.01768 0.03
RESULTING VALUE 31-Dec-99 32.138264 125.46236 4032.1424
5.000
FORMULA: 1000*(1+T)= 4032.1424
= 3929.322755
T = 31.48% 32.16%
R = 292.93%
AIM II GLOBAL G&I
31-Dec-94
TO NO. YEARS 5.000
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 31-Dec-94 1000.00 7.473512 133.80589
1 FEE 29-Dec-95 0.568228 8.537225 0.06656 0.07
2 FEE 31-Aug-95 0.568228 7.890816 0.07201 0.06
3 FEE 31-Dec-97 0.568228 11.290109 0.05033 0.05
4 FEE 31-Dec-98 0.568228 13.354470 0.04255 0.04
5 FEE 31-Dec-99 0.568228 13.189537 0.04308 0.03
RESULTING VALUE 31-Dec-99 13.189537 133.66993 1763.0445
5.000
FORMULA: 1000*(1+T)= 1763.0445
= 1718.086857
T = 11.43% 12.01%
R = 71.81%
AIM II Capital Appreciation
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 3.132082 319.27643
1 FEE 05-May-94 0.568228 3.704769 0.15338 0.07
2 FEE 05-May-95 0.568228 4.143237 0.13715 0.06
3 FEE 05-May-96 0.568228 5.623614 0.10104 0.05
4 FEE 05-May-97 0.568228 5.913975 0.09608 0.04
5 FEE 05-May-98 0.568228 7.487924 0.07589 0.03
6 FEE 05-May-99 0.568228 7.773828 0.07309 0.02
7 FEE 31-Dec-99 0.568228 10.817707 0.05253 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.817707 318.58727 3446.3837
6.656
FORMULA: 1000*(1+T)= 3446.3837
= 3417.089443
T = 20.28% 20.43%
R = 241.71%
AIM II Growth
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 3.092052 323.40988
1 FEE 05-May-94 0.568228 3.258780 0.17437 0.07
2 FEE 05-May-95 0.568228 3.654108 0.15550 0.06
3 FEE 05-May-96 0.568228 4.628598 0.12276 0.05
4 FEE 05-May-97 0.568228 5.466802 0.10394 0.04
5 FEE 05-May-98 0.568228 7.383712 0.07696 0.03
6 FEE 05-May-99 0.568228 8.454483 0.06721 0.02
7 FEE 31-Dec-99 0.568228 10.590913 0.05365 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.590913 322.65548 3417.2162
6.656
FORMULA: 1000*(1+T)= 3417.2162
= 3388.169865
T = 20.12% 20.28%
R = 238.82%
AIM II International Equity
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 3.835257 260.73875
1 FEE 05-May-94 0.568228 4.460933 0.12738 0.07
2 FEE 05-May-95 0.568228 4.625826 0.12284 0.06
3 FEE 05-May-96 0.568228 5.558742 0.10222 0.05
4 FEE 05-May-97 0.568228 6.157320 0.09228 0.04
5 FEE 05-May-98 0.568228 7.562836 0.07513 0.03
6 FEE 05-May-99 0.568228 7.384183 0.07695 0.02
7 FEE 31-Dec-99 0.568228 11.145070 0.05098 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 11.145070 260.09096 2898.7320
6.656
FORMULA: 1000*(1+T)= 2898.7320
= 2874.092797
T = 17.19% 17.34%
R = 187.41%
AIM II Value
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 2.955592 338.34168
1 FEE 05-May-94 0.568228 3.444398 0.16497 0.07
2 FEE 05-May-95 0.568228 3.906334 0.14546 0.06
3 FEE 05-May-96 0.568228 4.720926 0.12036 0.05
4 FEE 05-May-97 0.568228 5.697850 0.09973 0.04
5 FEE 05-May-98 0.568228 7.351528 0.07729 0.03
6 FEE 05-May-99 0.568228 8.824505 0.06439 0.02
7 FEE 31-Dec-99 0.568228 10.412352 0.05457 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.412352 337.61490 3515.3652
6.656
FORMULA: 1000*(1+T)= 3515.3652
= 3485.484572
T = 20.63% 20.79%
R = 248.55%
AIM II Growth & Income
02-May-94
TO NO. YEARS 5.665
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 3.359681 297.64729
1 FEE 02-May-95 0.568228 3.722031 0.15267 0.07
2 FEE 02-May-96 0.568228 4.659151 0.12196 0.06
3 FEE 02-May-97 0.568228 5.552091 0.10234 0.05
4 FEE 02-May-98 0.568228 7.314852 0.07768 0.04
5 FEE 02-May-99 0.568228 8.867915 0.06408 0.03
6 FEE 31-Dec-99 0.568228 10.765735 0.05278 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.765735 297.07578 3198.2390
5.665
FORMULA: 1000*(1+T)= 3198.2390
= 3143.868952
T = 22.41% 22.78%
R = 214.39%
AIM II Global Utilities
02-May-94
TO NO. YEARS 5.665
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 02-May-94 1000.00 4.375335 228.55394
1 FEE 02-May-95 0.568228 4.453154 0.12760 0.07
2 FEE 02-May-96 0.568228 5.252394 0.10818 0.06
3 FEE 02-May-97 0.568228 5.920873 0.09597 0.05
4 FEE 02-May-98 0.568228 7.726727 0.07354 0.04
5 FEE 02-May-99 0.568228 8.147725 0.06974 0.03
6 FEE 31-Dec-99 0.568228 10.476433 0.05424 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.476433 228.02467 2388.8853
5.665
FORMULA: 1000*(1+T)= 2388.8853
= 2348.274213
T = 16.27% 16.62%
R = 134.83%
AIM II Diversified Income
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 7.754365 128.95962
1 FEE 05-May-94 0.568228 7.763794 0.07319 0.07
2 FEE 05-May-95 0.568228 8.325527 0.06825 0.06
3 FEE 05-May-96 0.568228 8.927526 0.06365 0.05
4 FEE 05-May-97 0.568228 9.826613 0.05783 0.04
5 FEE 05-May-98 0.568228 10.976624 0.05177 0.03
6 FEE 05-May-99 0.568228 10.215736 0.05562 0.02
7 FEE 31-Dec-99 0.568228 9.893308 0.05744 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.893308 128.53188 1271.6054
6.656
FORMULA: 1000*(1+T)= 1271.6054
= 1260.796796
T = 3.54% 3.68%
R = 26.08%
AIM II Government Securities
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 7.866921 127.11453
1 FEE 05-May-94 0.568228 7.733180 0.07348 0.07
2 FEE 05-May-95 0.568228 8.205231 0.06925 0.06
3 FEE 05-May-96 0.568228 8.467063 0.06711 0.05
4 FEE 05-May-97 0.568228 8.970153 0.06335 0.04
5 FEE 05-May-98 0.568228 9.667790 0.05878 0.03
6 FEE 05-May-99 0.568228 10.049049 0.05655 0.02
7 FEE 31-Dec-99 0.568228 9.907293 0.05735 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.907293 126.66867 1254.9436
6.656
FORMULA: 1000*(1+T)= 1254.9436
= 1244.276546
T = 3.34% 3.47%
R = 24.43%
AIM II Money Market
05-May-93
TO NO. YEARS 6.656
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 05-May-93 1000.00 7.992722 125.11382
1 FEE 05-May-94 0.568228 7.998783 0.07104 0.07
2 FEE 05-May-95 0.568228 7.998783 0.07104 0.06
3 FEE 05-May-96 0.568228 8.740743 0.06501 0.05
4 FEE 05-May-97 0.568228 9.068214 0.06266 0.04
5 FEE 05-May-98 0.568228 9.435764 0.06022 0.03
6 FEE 05-May-99 0.568228 9.787053 0.05806 0.02
7 FEE 31-Dec-99 0.568228 10.018392 0.05672 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.018392 124.66907 1248.9837
6.656
FORMULA: 1000*(1+T)= 1248.9837
= 1238.367349
T = 3.26% 3.40%
R = 23.84%
AIM II Balanced
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 7.885055 126.82220
1 FEE 01-May-99 0.568228 9.093750 0.06249 0.07
2 FEE 31-Dec-99 0.568228 10.289223 0.05523 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.289223 126.70449 1303.6907
1.667
FORMULA: 1000*(1+T)= 1303.6907
= 1237.202478
T = 13.62% 17.24%
R = 23.72%
AIM II High Yield
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 10.461881 95.58510
1 FEE 01-May-99 0.568228 9.820535 0.05786 0.07
2 FEE 31-Dec-99 0.568228 10.025805 0.05668 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.025805 95.47057 957.1693
1.667
FORMULA: 1000*(1+T)= 957.1693
= 908.3536282
T = -5.60% -2.59%
R = -9.16%
AIM II Capital Development
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 9.187421 108.84447
1 FEE 01-May-99 0.568228 7.951258 0.07146 0.07
2 FEE 31-Dec-99 0.568228 10.725266 0.05298 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.725266 108.72002 1166.0511
1.667
FORMULA: 1000*(1+T)= 1166.0511
= 1106.582529
T = 6.26% 9.65%
R = 10.66%
AIM II Aggressive Growth
01-May-98
TO NO. YEARS 1.667
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 01-May-98 1000.00 7.752925 128.98357
1 FEE 01-May-99 0.568228 7.453643 0.07623 0.07
2 FEE 31-Dec-99 0.568228 10.847192 0.05238 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 10.847192 128.85495 1397.7144
1.667
FORMULA: 1000*(1+T)= 1397.7144
= 1326.430979
T = 18.46% 22.24%
R = 32.64%
AIM II BLUE CHIP
30-Dec-99
TO NO. YEARS 0.003
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Dec-99 1000.00 9.751362 102.54978
1 FEE 31-Dec-99 0.568228 9.751068 0.05827 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.751068 102.49150 999.4016
0.003
FORMULA: 1000*(1+T)= 999.4016
= 939.9372378
T = -100.00% -19.64%
R = -6.01%
AIM II DENT DEMO
30-Dec-99
TO NO. YEARS 0.003
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 30-Dec-99 1000.00 9.751361 102.54978
1 FEE 31-Dec-99 0.568228 9.751067 0.05827 0.07
2 FEE N/A 0 N/A 0.00000 0.06
3 FEE N/A 0 N/A 0.00000 0.05
4 FEE N/A 0 N/A 0.00000 0.04
5 FEE N/A 0 N/A 0.00000 0.03
6 FEE N/A 0 N/A 0.00000 0.02
7 FEE N/A 0 N/A 0.00000 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 9.751067 102.49151 999.4016
0.003
FORMULA: 1000*(1+T)= 999.4016
= 939.9372378
T = -100.00% -19.64%
R = -6.01%
AIM II TELECOMMUNICATIONS
18-Oct-93
TO NO. YEARS 6.201
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 18-Oct-93 1000.00 6.915204 144.60890
1 FEE 18-Oct-94 0.568228 7.925019 0.07170 0.07
2 FEE 18-Oct-95 0.568228 10.017621 0.05672 0.06
3 FEE 18-Oct-96 0.568228 11.206260 0.05071 0.05
4 FEE 18-Oct-97 0.568228 14.434246 0.03937 0.04
5 FEE 18-Oct-98 0.568228 12.229141 0.04647 0.03
6 FEE 18-Oct-99 0.568228 19.681990 0.02887 0.02
7 FEE 31-Dec-99 0.568228 32.138264 0.01768 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 32.138264 144.29739 4637.4675
6.201
FORMULA: 1000*(1+T)= 4637.4675
= 4598.049047
T = 27.89% 28.07%
R = 359.80%
AIM II GLOBAL G&I
18-Oct-93
TO NO. YEARS 6.201
31-Dec-99
TRANSACTION DATE $ VALUE UNIT VALUE NO. UNITS END VALUE SURRENDER CHARGES
0 INIT DEPOSIT 18-Oct-93 1000.00 7.586737 131.80898
1 FEE 18-Oct-94 0.568228 7.677828 0.07401 0.07
2 FEE 18-Oct-95 0.568228 8.164033 0.06960 0.06
3 FEE 18-Oct-96 0.568228 9.380279 0.06058 0.05
4 FEE 18-Oct-97 0.568228 11.109100 0.05115 0.04
5 FEE 18-Oct-98 0.568228 12.361815 0.04597 0.03
6 FEE 18-Oct-99 0.568228 12.078648 0.04704 0.02
7 FEE 31-Dec-99 0.568228 13.189537 0.04308 0.01
8 FEE N/A 0 N/A 0.00000 0
9 FEE N/A 0 N/A 0.00000 0
10 FEE N/A 0 N/A 0.00000 0
11 FEE N/A 0 N/A 0.00000 0
12 FEE N/A 0 N/A 0.00000 0
13 FEE N/A 0 N/A 0.00000 0
14 FEE N/A 0 N/A 0.00000 0
15 FEE N/A 0 N/A 0.00000 0
RESULTING VALUE 31-Dec-99 13.189537 131.41755 1733.3366
6.201
FORMULA: 1000*(1+T)= 1733.3366
= 1718.603251
T = 9.12% 9.28%
R = 71.86%
</TABLE>
