-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EmR7rhsq4QujRnQ/F98OyVaycZH7UxiUJ1qb3gcfsfTgJDVHZH/f8gR/KpoNWsVP N431dOlfbzGTdAUxpiC3Nw== /in/edgar/work/0000912057-00-042501/0000912057-00-042501.txt : 20000928 0000912057-00-042501.hdr.sgml : 20000928 ACCESSION NUMBER: 0000912057-00-042501 CONFORMED SUBMISSION TYPE: POS AMI PUBLIC DOCUMENT COUNT: 10 FILED AS OF DATE: 20000925 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ANCHOR NATIONAL LIFE INSURANCE CO CENTRAL INDEX KEY: 0000006342 STANDARD INDUSTRIAL CLASSIFICATION: [ ] IRS NUMBER: 860198983 STATE OF INCORPORATION: AZ FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: POS AMI SEC ACT: SEC FILE NUMBER: 333-08877 FILM NUMBER: 728538 BUSINESS ADDRESS: STREET 1: 1 SUNAMERICA CENTER STREET 2: C/O THOMAS B PHILLIPS CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3107726000 MAIL ADDRESS: STREET 1: 1 SUN AMERICA CENTER CITY: LOS ANGELES STATE: CA ZIP: 90067 FORMER COMPANY: FORMER CONFORMED NAME: ANCHOR LIFE INSURANCE CO DATE OF NAME CHANGE: 19600201 POS AMI 1 a2026237zposami.txt POS AMI Registration No. 333-08877 - ------------------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------- POST-EFFECTIVE AMENDMENT NO. 9 ON FORM S-3 TO FORM S-1 ON FORM S-3 UNDER THE SECURITIES ACT OF 1933 ------------- ANCHOR NATIONAL LIFE INSURANCE COMPANY (Exact name of registrant as specified in its charter) California 6311 86-0198983 (State or other (Primary Standard (I.R.S. Employer jurisdiction of Industrial Classification Identification Number) incorporation or Number) organization) 1 SunAmerica Center Los Angeles, California 90067-6022 (310) 772-6000 (Address, including zip code, and telephone number, including area code, or registrant's principal executive offices) Christine A. Nixon, Esquire Anchor National Life Insurance Company 1 SunAmerica Center Los Angeles, California 90067-6022 (310) 772-6000 (Name, address, including zip code, and telephone number, including area code of agent for service) ------------- Approximate date of commencement of proposed sale to the public: As soon after the effective date of this Registration Statement as is practicable. If the only securities being registered on this form are being offered pursuant to dividend or interest reinvestment plans, please check the following box. / / If any of the securities being registered on this form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, other than securities offered only in connection with dividend or interest reinvestment plans, check the following box. /X/ If this form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. / / _____________ If this form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. / / _____________ - ------------------------------------------------------------------------------- [LOGO] PROFILE October 16, 2000 THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT POINTS YOU SHOULD KNOW AND CONSIDER BEFORE PURCHASING THE SEASONS SELECT II VARIABLE ANNUITY. THIS VARIABLE ANNUITY PROVIDES AN OPTIONAL BONUS FEATURE CALLED "SELECT REWARDS." IF YOU ELECT THIS FEATURE, IN EXCHANGE FOR ANY BONUS CREDITED TO YOUR CONTRACT, YOUR SURRENDER CHARGE SCHEDULE WILL BE LONGER AND GREATER THAN IF YOU CHOSE NOT TO ELECT THIS FEATURE. THESE WITHDRAWAL CHARGES MAY OFFSET THE VALUE OF THE BONUS, IF YOU MAKE AN EARLY WITHDRAWAL. THE ANNUITY IS MORE FULLY DESCRIBED IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY. 1. THE SEASONS SELECT II VARIABLE ANNUITY The Seasons Select II Variable Annuity contract is a contract between you and Anchor National Life Insurance Company. We designed Seasons Select II to help you save on a tax-deferred basis. Seasons Select II provides a means to diversify your investments among asset classes and managers as well as a variety of investment styles to meet long-term financial goals, such as retirement funding. Tax deferral means all your money, including the amount you would otherwise pay in current income taxes, remains in your contract to generate more earnings. Your money could grow faster than it would in a comparable taxable investment. Of course, certain Qualified contracts automatically provide tax deferral regardless of whether they are funded with an annuity. The Seasons Select II Variable Annuity is designed as a long term retirement investment and helps you meet these goals by offering variable investment options. There are nine multimanaged portfolios called SELECT PORTFOLIOS and one multi-managed FOCUSED PORTFOLIO representing a spectrum of investment styles. In addition, there are four STRATEGIES which are managed by five different professional investment managers. The value of any portion of your contract allocated to the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) will fluctuate up or down based on the performance of the PORTFOLIOS and STRATEGIES you select. You may experience a loss of both principal and earnings. Five fixed investment options, each for a different length of time and offering different interest rates guaranteed by Anchor National, are also available. In addition, if you do not elect to participate in the Select Rewards Program, the two DCA fixed accounts are available. They offer fixed interest rates guaranteed by Anchor National and are available under the contract strictly as source accounts for the Dollar Cost Averaging program. The SELECT PORTFOLIOS, FOCUSED PORTFOLIOS, STRATEGIES and fixed investment options are designed to be used in order to achieve your desired investment goals. You may put money into any of the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS, STRATEGIES and/or fixed investment options. You may make transfers between the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS, STRATEGIES and/or the fixed investment options without incurring a transfer charge. Like most annuities, the contract has an Accumulation Phase and an Income Phase. During the Accumulation Phase, you invest money in your contract. Your earnings are based on the investment performance of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) to which your money is allocated and/or the interest rate earned on the fixed investment options. You may withdraw money from your contract during the Accumulation Phase. However, as with other tax-deferred investments, you will pay taxes on earnings and untaxed contributions when you withdraw them. An IRS tax penalty may apply if you make withdrawals before age 59 1/2. During the Income Phase, you will receive payments from your annuity. Your payments may be fixed in dollar amount, vary with investment performance or be a combination of both, depending on where your money is allocated. Among other factors, the amount of money you are able to accumulate in your contract during the Accumulation Phase will determine the amount of your payments during the Income Phase. The Seasons Select II Variable Annuity may not be available in all states. 2. INCOME OPTIONS You can select from one of five income options: (1) payments for your lifetime; (2) payments for your lifetime and your survivor's lifetime; (3) payments for your lifetime and your survivor's lifetime, but for not less than 10 or 20 years; (4) payments for your lifetime, but for not less than 10 or 20 years; and (5) payments for a specified period of 5 to 30 years. Other options may be available. You will also need to decide if you want your payments to fluctuate with investment performance or remain constant, and the date on which your payments will begin. Once you begin receiving payments, you cannot change your income option. If your contract is Non-qualified, payments during the Income Phase are considered partly a return of your original investment. The "original investment" part of each payment is not taxable but any gain to your original investment is currently taxable as ordinary income upon distribution. For Qualified contracts, the entire payment is currently taxable as ordinary income. In addition to the above income options, if elected by you, you may also take income payments under the Income Protector program subject to the provisions thereof. 3. PURCHASING A SEASONS SELECT II VARIABLE ANNUITY You can buy a contract through your financial representative, who can also help you complete the proper forms. For Non-qualified contracts the minimum initial investment is $5000. For Qualified contracts the minimum initial investment is $2000. You can add $500 or more to your contract at any time during the Accumulation Phase. You may elect to participate in the Select Rewards Program when you apply for your contract. Under this program, we add an amount to your contract (an "upfront Payment Enhancement") each time you invest a Purchase Payment. Additionally, we may also pay an amount to your contract at a future date (a "deferred Payment Enhancement"). Payment Enhancements are calculated as a percentage of each Purchase Payment. The Select Rewards Program may not be available to you. Please check with your financial representative regarding availability of this program. 4. INVESTMENT OPTIONS You can put your money into any one or more of the nine distinct SELECT PORTFOLIOS, one FOCUSED PORTFOLIO, four multi-manager variable investment STRATEGIES and/or the seven fixed investment options; however, the 6-month and 1-year DCA fixed accounts are not available if you elect to participate in the Select Rewards Program. The fixed investment options offer fixed rates of interest for specified lengths of time. Each SELECT PORTFOLIO and each FOCUSED PORTFOLIO has a distinct investment objective utilizing a disciplined investing style to achieve its objective. Each SELECT PORTFOLIO and each FOCUSED PORTFOLIO invests in an underlying investment portfolio. Except for the Cash Management portfolio[s], each underlying portfolio is multi-managed by a team of three money managers specializing in the distinct investment style. The nine SELECT PORTFOLIOS and the respective managers are: LARGE CAP GROWTH LARGE CAP COMPOSITE BANKERS TRUST COMPANY BANKERS TRUST ("BANKERS TRUST") SUNAMERICA ASSET GOLDMAN SACHS ASSET MANAGEMENT CORPORATION MANAGEMENT ("GOLDMAN ("SAAMCO") SACHS") T. ROWE PRICE ASSOCIATES, INC. JANUS CAPITAL CORPORATION("JANUS") ("T. ROWE PRICE") LARGE CAP VALUE MID CAP GROWTH BANKERS TRUST BANKERS TRUST T. ROWE PRICE T. ROWE PRICE WELLINGTON MANAGEMENT WELLINGTON COMPANY LLP ("WELLINGTON") MID CAP VALUE SMALL CAP BANKERS TRUST BANKERS TRUST GOLDMAN SACHS LORD ABBETT LORD ABBETT & CO. ("LORD ABBETT") SAAMCO INTERNATIONAL EQUITY DIVERSIFIED FIXED INCOME BANKERS TRUST BANKERS TRUST GOLDMAN SACHS ASSET MANAGEMENT SAAMCO INTERNATIONAL ("GOLDMAN WELLINGTON SACHS INT'L") LORD ABBETT CASH MANAGEMENT SAAMCO
The FOCUSED PORTFOLIO and its managers are: FOCUS GROWTH FRED ALGER MANAGEMENT ("FRED ALGER") JENNISON ASSOCIATES ("JENNISON") MARSICO CAPITAL MANAGEMENT ("MARSICO CAPITAL") Each STRATEGY has a different investment objective. The STRATEGIES use an asset allocation investment approach. Each STRATEGY invests in a combination of underlying investment portfolios which in turn invest in a combination of stocks, bonds and cash, to achieve its investment objective. The four investment STRATEGIES and their underlying investment portfolios are: GROWTH STRATEGY - - ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO PUTNAM INVESTMENT MANAGEMENT, INC. ("PUTNAM") - - STOCK PORTFOLIO T. ROWE PRICE - - MULTI-MANAGED GROWTH PORTFOLIO JANUS SAAMCO WELLINGTON MODERATE GROWTH STRATEGY - - ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO PUTNAM INVESTMENT MANAGEMENT, INC. - - STOCK PORTFOLIO T. ROWE PRICE - - MULTI-MANAGED MODERATE GROWTH PORTFOLIO JANUS SAAMCO WELLINGTON BALANCED GROWTH STRATEGY - - ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO PUTNAM - - STOCK PORTFOLIO T. ROWE PRICE - - MULTI-MANAGED INCOME/EQUITY PORTFOLIO JANUS SAAMCO WELLINGTON CONSERVATIVE GROWTH STRATEGY - - ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO PUTNAM - - STOCK PORTFOLIO T. ROWE PRICE - - MULTI-MANAGED INCOME PORTFOLIO JANUS SAAMCO WELLINGTON The percentage allocation which each STRATEGY invests in each underlying portfolio is depicted on pages 15-16 of the prospectus. 5. EXPENSES Each year we deduct a $35 ($30 in North Dakota) contract administration fee on your contract anniversary. We currently waive this fee if your contract value is at least $50,000 on your contract anniversary. We also deduct insurance charges. The insurance charge amounts to 1.40% annually of the average daily value of your contract allocated to the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES). There are also investment charges and other expenses if you put money into the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES), which are estimated to range from 0.85% to 1.30% and 12b-1 fees of 0.15% annually. Investment charges may be more or less than the percentages reflected here. If you take your money out in excess of the "free withdrawal" amount allowed for in your contract, we may assess a withdrawal charge that is a percentage of the money you withdraw. The withdrawal charge schedule also varies depending on whether you elect to participate in the Select Rewards Program when you purchase your contract. The percentage declines with each year the purchase payment is in the contract as follows: WITHDRAWAL CHARGE WITHOUT THE SELECT REWARDS PROGRAM (SCHEDULE A) Year 1........ 7% Year 5........ 4% Year 2........ 6% Year 6........ 3% Year 3........ 6% Year 7........ 2% Year 4........ 5% Year 8........ 0%
WITHDRAWAL CHARGE WITH THE SELECT REWARDS PROGRAM (SCHEDULE B) Year 1........ 9% Year 6........ 5% Year 2........ 8% Year 7........ 4% Year 3........ 7% Year 8........ 3% Year 4........ 6% Year 9........ 2% Year 5........ 6% Year 10........ 0%
The higher potential withdrawal charges may compensate us for the expenses associated with the Select Rewards Program. Additionally, if you take money out of a multi-year fixed investment option before the end of the selected period, we may assess a market value adjustment which could increase or decrease the value of your money. In some states you may also be assessed a state premium tax of up to 3.5%, depending upon the state in which you reside. You may make transfers among the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S), STRATEGY(IES) and/or fixed investment options without incurring a transfer charge. However, we reserve the right to charge a fee for such transfers in the future. If you elect to enroll in the Income Protector program, we charge 0.10% of your Income Benefit Base (as described in the prospectus) from your contract value on each contract anniversary depending on the option you select. If you elect the optional enhanced death benefit, we charge 0.25% of your daily net asset value. The following charts are designed to help you understand the charges in your contract. THE COLUMN "TOTAL ANNUAL CHARGES" SHOWS THE TOTAL OF THE $35 CONTRACT ADMINISTRATION CHARGE, THE 1.40% INSURANCE CHARGE, THE 0.15% 12B-1 FEE, AND THE INVESTMENT CHARGES FOR EACH SELECT PORTFOLIO, FOCUSED PORTFOLIO AND STRATEGY. WE CONVERTED THE CONTRACT ADMINISTRATION CHARGE TO A PERCENTAGE (0.09%) USING AN ASSUMED CONTRACT SIZE OF $40,000. The actual impact of this charge on your contract may differ from this percentage and actually may be waived for contract values over $50,000. [TO BE UPDATED BY AMENDMENT]
--------------------------------------------------------------------------------------------------------------------------- EXAMPLES Total Total Expenses Expenses at end of at end of 1 YEAR 10 YEARS Total Without/ Without/ Annual Total Annual With With Insurance Investment Total Select Select Related Related Annual Rewards Rewards Charges Charges Charges Program Program SELECT PORTFOLIOS --------------------------------------------------------------------------------------------------------------------------- Large Cap Growth 1.49% (1.40% + .09%) 1.25% (1.10% + .15%) 2.74% $ $ Large Cap Composite 1.49% (1.40% + .09%) 1.25% (1.10% + .15%) 2.74% $ $ Large Cap Value 1.49% (1.40% + .09%) 1.25% (1.10% + .15%) 2.74% $ $ Mid Cap Growth 1.49% (1.40% + .09%) 1.30% (1.15% + .15%) 2.79% $ $ Mid Cap Value 1.49% (1.40% + .09%) 1.30% (1.15% + .15%) 2.79% $ $ Small Cap 1.49% (1.40% + .09%) 1.30% (1.15% + .15%) 2.79% $ $ International Equity 1.49% (1.40% + .09%) 1.45% (1.30% + .15%) 2.94% $ $ Diversified Fixed Income 1.49% (1.40% + .09%) 1.15% (1.00% + .15%) 2.64% $ $ Cash Management 1.49% (1.40% + .09%) 1.00% (0.85% + .15%) 2.49% $ $ --------------------------------------------------------------------------------------------------------------------------- FOCUSED PORTFOLIOS --------------------------------------------------------------------------------------------------------------------------- Focus Growth(2) 1.49% (1.40% + .09%) 1.45% (1.30% + .15%) 2.79% $118 $308 --------------------------------------------------------------------------------------------------------------------------- EXAMPLES Total Total Expenses Expenses at end of at end of 1 YEAR 10 YEARS Total Without/ Without/ Annual Total Annual With With Insurance Investment Total Select Select Related Related Annual Rewards Rewards Charges Charges(1) Charges Program Program STRATEGIES --------------------------------------------------------------------------------------------------------------------------- Growth 1.49% (1.40% + .09%) 1.29% (1.14% + .15%) 2.78% $ $ Moderate Growth 1.49% (1.40% + .09%) 1.27% (1.12% + .15%) 2.76% $ $ Balanced Growth 1.49% (1.40% + .09%) 1.27% (1.12% + .15%) 2.76% $ $ Conservative Growth 1.49% (1.40% + .09%) 1.25% (1.10% + .15%) 2.74% $ $ ---------------------------------------------------------------------------------------------------------------------------
(1) Investment related charges for each STRATEGY are based upon the allocation to the underlying investment portfolio after the quarterly rebalancing described in the prospectus. (2) This portfolio was not available for sale during fiscal year 2000. The Total Annual Investment Related Charges are based on estimated amounts for the current fiscal year. If you elect the optional Income Protector (0.10%) and Enhanced Death Benefit(3) (0.25%): TO BE UPDATED BY AMENDMENT
------------------------------------------------------------------------------------------------------------ EXAMPLES Total Total Expenses Expenses at end of at end of 1 YEAR 10 YEARS Total Without/ Without/ Annual Total Annual With With Insurance Investment Total Select Select Related Related Annual Rewards Rewards Charges Charges Charges Program Program SELECT PORTFOLIO(S) ------------------------------------------------------------------------------------------------------------ Large Cap Growth 1.84% (1.40% + .09% + .10% + .25%) 1.25% (1.10% + .15%) 3.09% $ $ Large Cap Composite 1.84% (1.40% + .09% + .10% + .25%) 1.25% (1.10% + .15%) 3.09% $ $ Large Cap Value 1.84% (1.40% + .09% + .10% + .25%) 1.25% (1.10% + .15%) 3.09% $ $ Mid Cap Growth 1.84% (1.40% + .09% + .10% + .25%) 1.30% (1.15% + .15%) 3.14% $ $ Mid Cap Value 1.84% (1.40% + .09% + .10% + .25%) 1.30% (1.15% + .15%) 3.14% $ $ Small Cap Portfolio 1.84% (1.40% + .09% + .10% + .25%) 1.30% (1.15% + .15%) 3.14% $ $ International Equity 1.84% (1.40% + .09% + .10% + .25%) 1.45% (1.30% + .15%) 3.29% $ $ Diversified Fixed Income 1.84% (1.40% + .09% + .10% + .25%) 1.15% (1.00% + .15%) 2.99% $ $ Cash Management 1.84% (1.40% + .09% + .10% + .25%) 1.00% (0.85% + .15%) 2.84% $ $ ------------------------------------------------------------------------------------------------------------ FOCUSED PORTFOLIOS ------------------------------------------------------------------------------------------------------------ Focus Growth(2) 1.84% (1.40% + .09% + .10% + .25%) 1.45% (1.30% + .15%) 3.29% $119 $320 ------------------------------------------------------------------------------------------------------------ EXAMPLES Total Total Expenses Expenses at end of at end of 1 YEAR 10 YEARS Total Without/ Without/ Annual Total Annual With With Insurance Investment Total Select Select Related Related Annual Rewards Rewards Charges Charges(1) Charges Program Program STRATEGY(IES) ------------------------------------------------------------------------------------------------------------ Growth 1.84% (1.40% + .09% + .10% + .25%) 1.29% (1.14% + .15%) 3.13% $ $ Moderate Growth 1.84% (1.40% + .09% + .10% + .25%) 1.27% (1.12% + .15%) 3.11% $ $ Balanced Growth 1.84% (1.40% + .09% + .10% + .25%) 1.27% (1.12% + .15%) 3.11% $ $ Conservative Growth 1.84% (1.40% + .09% + .10% + .25%) 1.25% (1.10% + .15%) 3.09% $ $ ------------------------------------------------------------------------------------------------------------
(1) Investment related charges for each STRATEGY are based upon the allocation to the underlying investment portfolio after the quarterly rebalancing described in the prospectus. (2) This portfolio was not available for sale during fiscal year 2000. The Total Annual Investment Related Charges are based on estimated amounts for the current fiscal year. (3) Once elected at the time of contract application, the enhanced death benefit cannot be terminated. The examples assume that you invested $1,000 in a SELECT PORTFOLIO, FOCUSED PORTFOLIO or STRATEGY which earns 5% annually and that you withdrew your money at the end of a 1 year period and at the end of a 10 year period. For year 1, the total annual charges are assessed as well as the withdrawal charge. For year 10, the example reflects the total annual charges but there is no withdrawal charge applicable. The annual investment-related expenses may vary. The amounts shown here are estimates and reflect the waiver or reimbursement of expenses by the investment adviser. No premium taxes are reflected. Please see the Fee Tables in the prospectus for more detailed information regarding the fees and expenses incurred under the contract. 6. TAXES Unlike taxable investments where earnings are taxed in the year they are earned, taxes on amounts earned in a Non-qualified contract (one that is established with after tax dollars) are deferred until they are withdrawn. In a Qualified contract (one that is established with before tax dollars) all amounts are taxable when they are withdrawn. When you begin taking distributions or withdrawals from your contract, earnings are considered to be taken out first and will be taxed at your ordinary income tax rate. You may be subject to a 10% IRS tax penalty for distributions or withdrawals before age 59 1/2. 7. ACCESS TO YOUR MONEY Withdrawals may be made from your contract in the amount of $1,000 or more. Your contract provides for a free withdrawal amount each year. A free withdrawal amount is the portion of your account that we allow you to take out each year without being charged a surrender penalty. However, upon a future full surrender of your contract we will recoup any surrender charges which would have been due at the time the free withdrawals were taken if your free withdrawal had not been free. If you withdraw your entire contract value and you have purchase payments still subject to a surrender penalty, you will not receive the benefit of any free withdrawal amount. A separate withdrawal charge schedule applies to each purchase payment. After a purchase payment has been in the contract for seven full years, or nine years if you participate in the Select Rewards Program, withdrawal charges no longer apply to that portion of the money. Of course, upon withdrawal you may also have to pay income taxes and a 10% IRS tax penalty may apply. Neither withdrawal charges nor the 10% IRS tax penalty are assessed when a death benefit is paid. 8. PERFORMANCE The value of your annuity will fluctuate depending upon the investment performance of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) you select. From time to time we may advertise a SELECT PORTFOLIO'S, FOCUSED PORTFOLIO'S or STRATEGY'S total return. The total return figures are based on historical data and are not intended to indicate future performance.
----------------------------------------------- Strategy 1999 ----------------------------------------------- Growth............................ 35.32% Moderate Growth................... 29.61% Balanced Growth................... 16.90% Conservative Growth............... 10.57% -----------------------------------------------
The total returns here do not take into account the effect of a Payment Enhancement made under the Select Rewards Program. 9. DEATH BENEFIT If you, or the joint annuitant, if one exists, should die during the Accumulation Phase, your Beneficiary will receive a death benefit. The standard death benefit is an automatic feature of your contract. We also offer an optional enhanced death benefit which you may elect as an alternative to the standard death benefit if you are not over the age of 80 at time of contract issue. 10. OTHER INFORMATION OWNERSHIP: The contract is an allocated fixed and variable group annuity contract. A group contract is issued to a contractholder, for the benefit of the participants in the group. You, as an owner of a Seasons Select II Variable Annuity, are a participant in the group and will receive a certificate evidencing your ownership. You, as the owner of a certificate, are entitled to all the rights and privileges of ownership. As used in this Profile and the prospectus, the term contract refers to your certificate. In some states an individual fixed and variable annuity contract may be available instead, which is identical to the group contract described in this Profile and the prospectus except that it is issued directly to the individual owner. FREE LOOK: You may cancel your contract within 10 days of receiving it (or whatever period is required by your state) by mailing it to our Annuity Service Center. Your contract will be treated as void on the date we receive it and we will pay you an amount equal to the value of the money in the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) plus any money you put into the fixed investment options. Its value may be more or less than the money you initially invested. Thus, the investment risk is borne by you during the free look period. SELECT REWARDS PROGRAM: if elected by you, we add an amount to your contract (an "Upfront Payment Enhancement") each time you make a Purchase Payment. Additionally, we may also add an amount to your contract at a future date (a "Deferred Payment Enhancement"). Payment Enhancements are calculated as a percentage of your Purchase Payment amount and are treated as earnings under your contract. The program may not be available to you. Please check with your Financial representative regarding the availability of this program. SYSTEMATIC WITHDRAWAL PROGRAM: If selected by you, this program allows you to receive either monthly, quarterly, semi-annual or annual checks during the Accumulation Phase. Systematic withdrawals may also be electronically transferred to your bank account. Of course, withdrawals during the Accumulation Phase may be taxable and a 10% IRS tax penalty may apply if you are under age 59 1/2. DOLLAR COST AVERAGING: If selected by you, this program allows you to invest gradually into one or more of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) from a SELECT PORTFOLIO, FOCUSED PORTFOLIO, STRATEGY OR or 1-year fixed account option. If you do not participate in the Select Rewards Program you may also invest in the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) from the 6-month DCA fixed account option the 1-year DCA fixed account option. PRINCIPAL ADVANTAGE PROGRAM: If selected by you, this program allows you to put money in a fixed investment option and one or more SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) and we will guarantee that the portion allocated to the fixed investment option assuming that it remains invested in that option, will grow to equal your principal investment. AUTOMATIC PAYMENT PLAN: You can add to your contract directly from your bank account with as little as $50 per month. CONFIRMATIONS AND QUARTERLY STATEMENTS: During the accumulation phase, you will receive confirmation of transactions within your contract. Transactions made pursuant to contractual or systematic agreements, such as deduction of the annual maintenance fee and dollar cost averaging, may be confirmed quarterly. Purchase payments received through the automatic payment plan or a salary reduction arrangement, may also be confirmed quarterly. For all other transactions, we send confirmations immediately. During the Accumulation and Income Phases, you will receive a statement of your transactions over the past quarter and a summary of your account values. 11. INQUIRIES: If you have questions about your contract or need to make changes, call your financial representative or contact us at: Anchor National Life Insurance Company Annuity Service Center P.O. Box 54299 Los Angeles, California 90054-0299 800/445-SUN2 If money accompanies your correspondence, you should direct it to: Anchor National Life Insurance Company P.O. Box 100330 Pasadena, California 91189-0001 [LOGO] PROSPECTUS October 16, 2000 ALLOCATED FIXED AND VARIABLE GROUP ANNUITY issued by VARIABLE ANNUITY ACCOUNT FIVE and ANCHOR NATIONAL LIFE INSURANCE COMPANY The annuity contract has 21 investment choices - 7 fixed investment options (5 fixed investment options if the Select Rewards Program is elected) which offer interest rates guaranteed by Anchor National for different periods of time, 9 variable investment SELECT PORTFOLIOS, 1 variable investment FOCUSED PORTFOLIO and 4 variable investment STRATEGIES:
SELECT PORTFOLIOS FOCUSED PORTFOLIOS STRATEGIES LARGE CAP GROWTH FOCUS GROWTH GROWTH LARGE CAP COMPOSITE MODERATE GROWTH LARGE CAP VALUE BALANCED GROWTH MID CAP GROWTH CONSERVATIVE GROWTH MID CAP VALUE SMALL CAP INTERNATIONAL EQUITY DIVERSIFIED FIXED INCOME CASH MANAGEMENT
all of which invest in the underlying portfolios of SEASONS SERIES TRUST which is managed by:
SELECT PORTFOLIOS FOCUSED PORTFOLIOS STRATEGIES BANKERS TRUST COMPANY FRED ALGER MANAGEMENT PUTNAM INVESTMENT MANAGEMENT, INC. GOLDMAN SACHS ASSET MANAGEMENT JENNISON ASSOCIATES T. ROWE PRICE ASSOCIATES, INC. JANUS CAPITAL CORPORATION MARSICO CAPITAL MANAGEMENT JANUS CAPITAL CORPORATION LORD, ABBETT & COMPANY SUNAMERICA ASSET MANAGEMENT CORPORATION SUNAMERICA ASSET MANAGEMENT CORPORATION WELLINGTON MANAGEMENT COMPANY, LLP T. ROWE PRICE ASSOCIATES, INC. GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL WELLINGTON MANAGEMENT COMPANY, LLP
You can put your money into any one or all of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S), STRATEGY(IES) and/or fixed investment options. Please read this prospectus carefully before investing and keep it for your future reference. It contains important information you should know about the Seasons Select II Variable Annuity. This variable annuity provides an optional bonus feature called "Select Rewards." If you elect this feature, in exchange for bonuses credited to your contract, your surrender charge schedule will be longer and greater than if you chose not to elect this feature. These withdrawal charges may offset the value of any bonus, if you make an early withdrawal. To learn more about the annuity offered by this prospectus, you can obtain a copy of the Statement of Additional Information ("SAI") dated October 16, 2000. The SAI has been filed with the Securities and Exchange Commission ("SEC") and can be considered part of this prospectus. The table of contents of the SAI appears on page 42 of this prospectus. For a free copy of the SAI, call us at 800/445-SUN2 or write our Annuity Service Center at, P.O. Box 54299, Los Angeles, California 90054-0299. A registration statement has been filed with the SEC under the Securities Act of 1933 relating to the contract. This prospectus does not contain all the information in the registration statement as permitted by SEC regulations. The omitted information can be obtained from the SEC's principal office in Washington, D.C., upon payment of a prescribed fee. In addition, the SEC maintains a website (http://www.sec.gov) that contains the SAI, materials incorporated by reference and other information filed electronically with the SEC. ANNUITIES INVOLVE RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL, AND ARE NOT A DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR ENDORSED BY, ANY BANK. THEY ARE NOT FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY. THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE Anchor National's Annual Report on Form 10-K for the year ended December 31, 1999 is incorporated herein by reference. All documents or reports filed by Anchor National under Section 13(a), 13(c), 14, or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") after the effective date of this prospectus are also incorporated by reference. Statements contained in this prospectus and subsequently filed documents which are incorporated by reference or deemed to be incorporated by reference are deemed to modify or supersede documents incorporated herein by reference. Anchor National files its Exchange Act documents and reports, including its annual and quarterly reports on Form 10-K and Form 10-Q, electronically pursuant to EDGAR under CIK No. 0000006342. Anchor National is subject to the informational requirements of the Securities and Exchange Act of 1934 (as amended). We file reports and other information with the SEC to meet those requirements. You can inspect and copy this information at SEC public facilities at the following locations: WASHINGTON, DISTRICT OF COLUMBIA 450 Fifth Street, N.W., Room 1024 Washington, D.C. 20549 CHICAGO, ILLINOIS 500 West Madison Street Chicago, IL 60661 NEW YORK, NEW YORK 7 World Trade Center, 13th Fl. New York, NY 10048 To obtain copies by mail contact the Washington, D.C. location. After you pay the fees as prescribed by the rules and regulations of the SEC, the required documents are mailed. Registration statements under the Securities Act of 1933, as amended, related to the contracts offered by this prospectus are on file with the SEC. This prospectus does not contain all of the information contained in the registration statements and exhibits. For further information regarding the separate account, Anchor National and its general account, the Variable Portfolios and the contract, please refer to the registration statements and exhibits. The SEC also maintains a website (http://www.sec.gov) that contains the SAI, materials incorporated by reference and other information filed electronically with the SEC by Anchor National. Anchor National will provide without charge to each person to whom this prospectus is delivered, upon written or oral request, a copy of the documents incorporated by reference. Requests for these documents should be directed to Anchor National's Annuity Service Center, as follows: Anchor National Life Insurance Company Annuity Service Center P.O. Box 54299 Los Angeles, California 90054-0299 Telephone Number: (800) 445-SUN2 SECURITIES AND EXCHANGE COMMISSION POSITION ON INDEMNIFICATION Indemnification for liabilities arising under the Securities Act of 1933 (the "Act") is provided to Anchor National's officers, directors and controlling persons. The SEC has advised that it believes such indemnification is against public policy under the Act and unenforceable. If a claim for indemnification against such liabilities (other than for Anchor National's payment of expenses incurred or paid by its directors, officers or controlling persons in the successful defense of any legal action) is asserted by a director, officer or controlling person of Anchor National in connection with the securities registered under this prospectus, Anchor National will submit to a court with jurisdiction to determine whether the indemnification is against public policy under the Act. Anchor National will be governed by final judgment of the issue. However, if in the opinion of Anchor National's counsel this issue has been determined by controlling precedent, Anchor National will not submit the issue to a court for determination. 2 TABLE OF CONTENTS GLOSSARY.................................................... 4 FEE TABLES.................................................. 5 Owner Transaction Expenses.............................. 5 Annual Separate Account Expenses........................ 5 The Optional Income Protector Fee....................... 5 Investment Portfolio Expenses of Portfolios............. 6 Investment Portfolio Expenses by Strategy............... 6 Investment Portfolio Expenses for Strategy Underlying Portfolios............................................. 6 EXAMPLES.................................................... 7 THE SEASONS SELECT II VARIABLE ANNUITY...................... 10 PURCHASING A SEASONS SELECT VARIABLE ANNUITY................ 11 Select Rewards Program.................................. 11 Allocation of Purchase Payments......................... 11 Accumulation Units...................................... 14 Free Look............................................... 14 INVESTMENT OPTIONS.......................................... 15 Variable Investment Options............................. 15 THE PORTFOLIOS........................................ 15 THE STRATEGIES........................................ 16 Market Value Adjustment................................. 20 Transfers During the Accumulation Phase................. 21 Dollar Cost Averaging................................... 22 Principal Advantage Program............................. 23 Voting Rights........................................... 24 Substitution............................................ 24 ACCESS TO YOUR MONEY........................................ 24 Free Withdrawal Provision............................... 24 Systematic Withdrawal Program........................... 26 Minimum Contract Value.................................. 26 Qualified Contract Owners............................... 26 DEATH BENEFIT............................................... 27 Standard Death Benefit.................................. 27 Optional Enhanced Death Benefit......................... 28 Spousal Continuation.................................... 29 EXPENSES.................................................... 29 Insurance Charges....................................... 30 Withdrawal Charges...................................... 30 Investment Charges...................................... 31 Contract Maintenance Fee................................ 31 Transfer Fee............................................ 31 Premium Tax............................................. 31 Income Taxes............................................ 32 Reduction or Elimination of Charges and Expenses, and Additional Amounts Credited............................ 32 INCOME OPTIONS.............................................. 32 Annuity Date............................................ 32 Income Options.......................................... 33 Allocation of Annuity Payments.......................... 34 Transfers During the Income Phase....................... 34 Deferment of Payments................................... 34 The Income Protector.................................... 34 TAXES....................................................... 37 Annuity Contracts in General............................ 37 Tax Treatment of Distributions--Non-qualified Contracts.............................................. 38 Tax Treatment of Distributions--Qualified Contracts..... 38 Minimum Distributions................................... 38 Diversification......................................... 38 PERFORMANCE................................................. 39 OTHER INFORMATION........................................... 39 Anchor National......................................... 39 The Separate Account.................................... 40 Custodian............................................... 40 The General Account..................................... 40 Distribution of the Contract............................ 40 Administration.......................................... 40 Legal Proceedings....................................... 41 INDEPENDENT ACCOUNTANTS..................................... 41 TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION.... 42 APPENDIX A--CONDENSED FINANCIAL INFORMATION................. A-1 APPENDIX B--SELECT REWARDS PROGRAM EXAMPLES................. B-1 APPENDIX C--MARKET VALUE ADJUSTMENT......................... C-1 APPENDIX D--PREMIUM TAXES................................... D-1
3 GLOSSARY We have capitalized some of the technical terms used in this prospectus. To help you understand these terms, we define them in this glossary. ACCUMULATION PHASE--The period during which you invest money in your contract. ACCUMULATION UNITS--A measurement we use to calculate the value of the variable portion of your contract during the Accumulation Phase. ANNUITANT(S)--The person(s) on whose life (lives) we base annuity payments. ANNUITY DATE--The date on which annuity payments are to begin, as selected by you. ANNUITY UNITS--A measurement we use to calculate the amount of annuity payments you receive from the variable portion of your contract during the Income Phase. BENEFICIARY(IES)--The person(s) designated to receive any benefits under the contract if you or the Annuitant dies. COMPANY--Anchor National Life Insurance Company ("Anchor National"), We, Us, the issuer of this annuity contract. INCOME PHASE--The period during which we make annuity payments to you. IRS--The Internal Revenue Service. NON-QUALIFIED (CONTRACT)--A contract purchased with after-tax dollars. In general, these contracts are not under any pension plan, specially sponsored program or individual retirement account ("IRA"). PAYMENT ENHANCEMENT(S)--The amount(s) allocated to your contract by Us under the Select Rewards Program. Payment enhancements are calculated as a percentage of your Purchase Payments and are considered earnings. PORTFOLIO(S)--A sub-account of Variable Annuity Account Five which provides for the variable investment options available under the contract. Each SELECT and FOCUSED PORTFOLIO has a distinct investment objective and is invested in the underlying investment portfolios of the Seasons Series Trust. This investment option allocates assets to an underlying fund in which a portion of the assets is managed by three different advisors. PURCHASE PAYMENTS--The money you give us to buy the contract, as well as any additional money you give us to invest in the contract after you own it. QUALIFIED (CONTRACT)--A contract purchased with pretax dollars. These contracts are generally purchased under a pension plan, specially sponsored program or individual retirement account ("IRA"). STRATEGY(IES)--A sub-account of Variable Annuity Account Five which provides for the variable investment options available under the contract. Each STRATEGY has its own investment objective and is invested in the underlying investment portfolios of the Seasons Series Trust. This investment option allocates assets to three out of six available portfolios, each of which is managed by a different investment advisor. 4 SEASONS SELECT II VARIABLE ANNUITY FEE TABLES ------------------------------------------------------------ OWNER TRANSACTION EXPENSES Withdrawal Charge as a percentage of Purchase Payments:
YEARS: 1 2 3 4 5 6 7 8 9 10 Schedule A*.......... 7% 6% 6% 5% 4% 3% 2% 0% 0% 0% Schedule B**......... 9% 8% 7% 6% 6% 5% 4% 3% 2% 0%
* This schedule applies to each Purchase Payment if you are NOT participating in the Select Rewards Program. ** This schedule applies to each Purchase Payment if you are participating in the Select Rewards Program. Contract Maintenance Charge........ $35 each year ($30 in North Dakota)
ANNUAL SEPARATE ACCOUNT EXPENSES (as a percentage of daily net asset value) Mortality Risk Charge........................ 0.90% Expense Risk Charge.......................... 0.35% Distribution Expense Charge.................. 0.15% ---- Total Separate Account Expenses........ 1.40%
THE OPTIONAL INCOME PROTECTOR FEE (The Income Protector Program is optional and if elected the fee is deducted annually from your contract value.) Fee as a percentage of your Income Benefit Base*.................. 0.10%
* The Income Benefit Base is calculated by using your contract value on the date of your effective enrollment in the program and then each subsequent contract anniversary, adding purchase payments made since the prior contract anniversary, less proportional withdrawals since the prior contract anniversary and fees and charges applicable to those withdrawals. THE OPTIONAL ENHANCED DEATH BENEFIT FEE (The enhanced death benefit is optional and if elected the fee is deducted daily from your contract value.) Fee as a percentage of your daily net asset value.................. 0.25%
5 INVESTMENT PORTFOLIO EXPENSES OF PORTFOLIOS (based on the total annual expenses of the underlying investment portfolios reflected below as of the fiscal year end of the Trust ending March 31, 2000) (TO BE UPDATED BY AMENDMENT)
MANAGEMENT OTHER TOTAL ANNUAL FEE 12b-1 FEES EXPENSES EXPENSES - ----------------------------------------------------------------------------------------------------- SELECT PORTFOLIOS - ------------------------------------------------- Large Cap Growth 0.80% 0.15% 0.30% 1.25% Large Cap Composite 0.80% 0.15% 0.30% 1.25% Large Cap Value 0.80% 0.15% 0.30% 1.25% Mid Cap Growth 0.85% 0.15% 0.30% 1.30% Mid Cap Value 0.85% 0.15% 0.30% 1.30% Small Company 0.85% 0.15% 0.30% 1.30% International Equity 1.00% 0.15% 0.30% 1.45% Diversified Fixed Income 0.70% 0.15% 0.30% 1.15% Cash Management 0.55% 0.15% 0.30% 1.00% - ----------------------------------------------------------------------------------------------------- FOCUSED PORTFOLIOS - ------------------------------------------------- Focus Growth* 1.00% 0.15% 0.30% 1.45% - -----------------------------------------------------------------------------------------------------
* This portfolio was not available for sale during fiscal year 2000. The percentages are based on estimated amounts for the current fiscal year. INVESTMENT PORTFOLIO EXPENSES BY STRATEGY (based on the total annual expenses of the underlying investment portfolios reflected below as of the fiscal year end of the Trust ending March 31, 2000) (TO BE UPDATED BY AMENDMENT)
MANAGEMENT OTHER TOTAL ANNUAL FEE 12b-1 FEES EXPENSES EXPENSES - ----------------------------------------------------------------------------------------------------- Growth 0.87% 0.15% 0.27% 1.29% Moderate Growth 0.85% 0.15% 0.27% 1.27% Balanced Growth 0.83% 0.15% 0.29% 1.27% Conservative Growth 0.80% 0.15% 0.30% 1.25% - -----------------------------------------------------------------------------------------------------
IMPORTANT INFORMATION ABOUT PORTFOLIO EXPENSES IF INVESTED IN STRATEGIES: The Investment Portfolio Expenses table set forth below identifies the total investment expenses charged by the underlying investment portfolios of Seasons Series Trust. Each contractholder invested in a STRATEGY will incur only a portion of the investment expense of those portfolios in which the STRATEGY invests. The table above entitled "Investment Portfolio Expenses by STRATEGY" shows an approximation of the total investment expenses a contractholder may incur if invested in each respective STRATEGY, after the automatic quarterly rebalancing of such STRATEGY as described on page 17. The actual investment expenses incurred by contractholders within a STRATEGY will vary depending upon the daily net asset value of each investment portfolio in which such STRATEGY is invested. INVESTMENT PORTFOLIO EXPENSES FOR STRATEGY UNDERLYING PORTFOLIOS (as a percentage of daily net asset value of each investment portfolio as of the fiscal year end of the Trust ending March 31, 2000) (TO BE UPDATED BY AMENDMENT)
MANAGEMENT OTHER TOTAL ANNUAL FEE 12b-1 FEES EXPENSES EXPENSES - ----------------------------------------------------------------------------------------------------- Stock 0.85% 0.15% 0.21% 1.21% Asset Allocation: Diversified Growth 0.85% 0.15% 0.36% 1.36% Multi-Managed Growth 0.89% 0.15% 0.26% 1.30% Multi-Managed Moderate Growth 0.85% 0.15% 0.25% 1.25% Multi-Managed Income/Equity 0.81% 0.15% 0.29% 1.25% Multi-Managed Income 0.77% 0.15% 0.29% 1.21% - -----------------------------------------------------------------------------------------------------
THE ABOVE INVESTMENT PORTFOLIO EXPENSES WERE PROVIDED BY SEASONS SERIES TRUST. WE HAVE NOT INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION. 6 EXAMPLES (TO BE UPDATED BY AMENDMENT) You will pay the following expenses on a $1,000 investment, assuming a 5% annual return on assets, Investment Portfolio Expenses after any waiver, reimbursement or recoupment, if applicable, and you did NOT participate in the Select Rewards Program: (a) If the contract is surrendered at the end of the stated time period. (b) If the contract is not surrendered or is annuitized.* (c) If the contract is surrendered and you elect one of the optional Enhanced Death Benefits and the Income Protector Program.
TIME PERIODS - ---------------------------------------------------------------------------------------------- SELECT PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ---------------------------------------------------------------------------------------------- Large Cap Growth (a) $116 (a) $150 (a) $196 (a) $289 (b) $117 (b) $153 (b) $202 (b) $300 (c) $26 (c) $ 80 (c) $136 (c) $289 Large Cap Composite (a) $116 (a) $150 (a) $196 (a) $289 (b) $117 (b) $153 (b) $202 (b) $300 (c) $26 (c) $ 80 (c) $136 (c) $289 Large Cap Value (a) $116 (a) $150 (a) $196 (a) $289 (b) $117 (b) $153 (b) $202 (b) $300 (c) $26 (c) $ 80 (c) $136 (c) $289 Mid Cap Growth (a) $116 (a) $151 (a) $198 (a) $294 (b) $118 (b) $155 (b) $204 (b) $305 (c) $26 (c) $ 81 (c) $138 (c) $294 Mid Cap Value (a) $116 (a) $151 (a) $198 (a) $294 (b) $118 (b) $155 (b) $204 (b) $305 (c) $26 (c) $ 81 (c) $138 (c) $294 Small Company (a) $116 (a) $151 (a) $198 (a) $294 (b) $118 (b) $155 (b) $204 (b) $305 (c) $26 (c) $ 81 (c) $138 (c) $294 International Equity (a) $118 (a) $155 (a) $206 (a) $308 (b) $119 (b) $159 (b) $212 (b) $320 (c) $28 (c) $ 85 (c) $146 (c) $308 Diversified Fixed Income (a) $115 (a) $147 (a) $191 (a) $279 (b) $116 (b) $150 (b) $197 (b) $291 (c) $25 (c) $ 77 (c) $131 (c) $279 Cash Management (a) $113 (a) $142 (a) $183 (a) $264 (b) $115 (b) $146 (b) $189 (b) $276 (c) $23 (c) $ 72 (c) $123 (c) $264 - ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- FOCUSED PORTFOLIOS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ---------------------------------------------------------------------------------------------- Focus Growth** (a) $118 (a) $155 (a) $206 (a) $308 (b) $119 (b) $159 (b) $212 (b) $320 (c) $28 (c) $ 85 (c) $146 (c) $308 - ----------------------------------------------------------------------------------------------
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TIME PERIODS - ------------------------------------------------------------------------------------------ STRATEGY 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ------------------------------------------------------------------------------------------ Growth (a) $116 (a) $151 (a) $198 (a) $293 (b) $117 (b) $154 (b) $204 (b) $304 (c) $26 (c) $ 81 (c) $138 (c) $293 Moderate Growth (a) $116 (a) $150 (a) $197 (a) $291 (b) $117 (b) $154 (b) $203 (b) $302 (c) $26 (c) $ 80 (c) $137 (c) $291 Balanced Growth (a) $116 (a) $150 (a) $197 (a) $291 (b) $117 (b) $154 (b) $203 (b) $302 (c) $26 (c) $ 80 (c) $137 (c) $291 Conservative Growth (a) $116 (a) $150 (a) $196 (a) $289 (b) $117 (b) $153 (b) $202 (b) $300 (c) $26 (c) $ 80 (c) $136 (c) $289 - ------------------------------------------------------------------------------------------
* We do not currently charge a surrender charge upon annuitization, unless the contract is annuitized under the Income Protector Program. We will assess any applicable surrender charges upon annuitizations effected using the Income Protector Program as if you had fully surrendered your contract. ** This portfolio was not available for sale during fiscal year 2000. The figures are based on estimated amounts for the current fiscal year. You will pay the following expenses on a $1,000 investment, assuming a 5% annual return on assets, Investment Portfolio Expenses after any waiver, reimbursement or recoupment, if applicable, and you participated in the Select Rewards Program: (a) If the contract is surrendered at the end of the stated time period. (b) If the contract is not surrendered or is annuitized at the end of the stated time period. (c)If the contract is surrendered at the end of the stated time period and you elect one of the optional Enhanced Death Benefits and the Income Protector Program.
TIME PERIODS - ---------------------------------------------------------------------------------------------- SELECT PORTFOLIO 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ---------------------------------------------------------------------------------------------- Large Cap Growth (a) $117 (a) $153 (a) $201 (a) $300 (b) $118 (b) $156 (b) $207 (b) $312 (c) $ (c) $ (c) $ (c) $ Large Cap Composite (a) $117 (a) $153 (a) $201 (a) $300 (b) $118 (b) $156 (b) $207 (b) $312 (c) $ (c) $ (c) $ (c) $ Large Cap Value (a) $117 (a) $153 (a) $201 (a) $300 (b) $118 (b) $156 (b) $207 (b) $312 (c) $ (c) $ (c) $ (c) $ Mid Cap Growth (a) $117 (a) $154 (a) $203 (a) $305 (b) $119 (b) $158 (b) $209 (b) $316 (c) $ (c) $ (c) $ (c) $ Mid Cap Value (a) $117 (a) $154 (a) $203 (a) $305 (b) $119 (b) $158 (b) $209 (b) $316 (c) $ (c) $ (c) $ (c) $ Small Company (a) $117 (a) $154 (a) $203 (a) $305 (b) $119 (b) $158 (b) $209 (b) $316 (c) $ (c) $ (c) $ (c) $ International Equity (a) $119 (a) $159 (a) $211 (a) $319 (b) $120 (b) $162 (b) $217 (b) $331 (c) $ (c) $ (c) $ (c) $ Diversified Fixed Income (a) $116 (a) $150 (a) $196 (a) $290 (b) $117 (b) $153 (b) $202 (b) $302 (c) $ (c) $ (c) $ (c) $ Cash Management (a) $114 (a) $145 (a) $189 (a) $275 (b) $116 (b) $149 (b) $195 (b) $287 (c) $ (c) $ (c) $ (c) $ - ---------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------- FOCUSED PORTFOLIOS 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ---------------------------------------------------------------------------------------------- Focus Growth** (a) $119 (a) $159 (a) $211 (a) $319 (b) $120 (b) $162 (b) $217 (b) $331 (c) $ (c) $ (c) $ (c) $ - ----------------------------------------------------------------------------------------------
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TIME PERIODS - ------------------------------------------------------------------------------------------ STRATEGY 1 YEAR 3 YEARS 5 YEARS 10 YEARS - ------------------------------------------------------------------------------------------ Growth (a) $117 (a) $154 (a) $203 (a) $304 (b) $118 (b) $157 (b) $209 (b) $315 (c) $ (c) $ (c) $ (c) $ Moderate Growth (a) $117 (a) $153 (a) $202 (a) $302 (b) $118 (b) $157 (b) $208 (b) $313 (c) $ (c) $ (c) $ (c) $ Balanced Growth (a) $117 (a) $153 (a) $202 (a) $302 (b) $118 (b) $157 (b) $208 (b) $313 (c) $ (c) $ (c) $ (c) $ Conservative Growth (a) $117 (a) $153 (a) $201 (a) $300 (b) $118 (b) $156 (b) $207 (b) $312 (c) $ (c) $ (c) $ (c) $ - ------------------------------------------------------------------------------------------
** This portfolio was not available for sale during fiscal year 2000. The figures are based on estimated amounts for the current fiscal year. EXPLANATION OF FEE TABLES AND EXAMPLES 1. The purpose of the Fee Tables is to show you the various expenses you will incur directly and indirectly by investing in the contract. The example reflects owner transaction expenses, separate account expenses including optional benefit fees in some examples and investment portfolio expenses by SELECT PORTFOLIO, FOCUSED PORTFOLIO and STRATEGY. 2. The Examples assume that no transfer fees were imposed. Premium taxes are not reflected but may be applicable. Although premium taxes may apply in certain states, they are not reflected in the Examples. 3. For certain investment portfolios in which the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGIES invest, SAAMCo has voluntarily agreed to waive fees or reimburse expenses, if necessary, to keep annual operating expenses at or below the following percentages of each of the following Portfolios' average net assets: Multi-Managed Growth Portfolio 1.29%, Multi-Managed Moderate Growth Portfolio 1.21%, Multi-Managed Income/Equity Portfolio 1.14%, Multi-Managed Income Portfolio 1.06%, Asset Allocation: Diversified Growth Portfolio 1.21%, Stock Portfolio 1.21%, Large Cap Growth Portfolio 1.10%, Large Cap Composite Portfolio 1.10%, Large Cap Value Portfolio 1.10%, Mid Cap Growth Portfolio 1.15%, Mid Cap Value Portfolio 1.15%, Small Cap Portfolio 1.15%, International Equity Portfolio 1.30%, Diversified Fixed Income Portfolio 1.00%, Focus Growth 1.30% and Cash Management Portfolio 0.85%. SAAMCo also may voluntarily waive or reimburse additional amounts to increase the investment return to a Portfolio's investors. SAAMCo may terminate all such waivers and/or reimbursements at any time. Further, any waivers or reimbursements made by SAAMCo with respect to a Portfolio are subject to recoupment from that Portfolio within the following two years, provided that the Portfolio is able to effect such payment to SAAMCo and remain in compliance with the foregoing expense limitations. During the time period reflected in this Fee Table, the adviser did not rely on any of these waiver and/or reimbursement agreements. 4. Examples reflecting participation in the Select Rewards program reflect surrender charge Schedule B, and a [2%] upfront payment enhancement. 5. THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN. The historical accumulation unit values for the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGY(IES) are contained in Appendix A--Condensed Financial Information. 9 THE SEASONS SELECT II VARIABLE ANNUITY - -------------------------------------------------------------------------------- An annuity is a contract between you and an insurance company. You are the owner of the contract. The contract provides three main benefits: - Tax Deferral: You do not pay taxes on your earnings from the annuity until you withdraw them. - Death Benefit: If you die during the Accumulation Phase, the insurance company pays a death benefit to your Beneficiary. - Guaranteed Income: If elected, you receive a stream of income for your lifetime, or another available period you select. Tax-qualified retirement plans (e.g., IRAs, 401(k) or 403(b) plans) defer payment of taxes on earnings until withdrawal. If you are considering funding a tax-qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax deferral treatment of earnings beyond the treatment provided by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits which may be valuable to you. You should fully discuss this decision with your financial advisor. This annuity was developed to help you contribute to your retirement savings. This annuity works in two stages, the Accumulation Phase and the Income Phase. Your contract is in the Accumulation Phase during the period when you make payments into the contract. The Income Phase begins when you request us to start making payments to you out of the money accumulated in your contract. The Contract is called a "variable" annuity because it allows you to invest in variable investment portfolios which we call SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and/or STRATEGIES. The SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGIES, are similar to mutual funds, in that they have specific investment objectives and their performance varies. You can gain or lose money if you invest in these SELECT PORTFOLIOS, FOCUSED PORTFOLIOS or STRATEGIES. The amount of money you accumulate in your contract depends on the performance of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEG(IES) in which you invest. The Contract also offers several fixed account options for varying time periods. Fixed account options earn interest at a rate set and guaranteed by Anchor National. If you allocate money to the fixed account options, the amount of money that accumulates in your Contract depends on the total interest credited to the particular fixed account option(s) in which you are invested. For more information on SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S), STRATEGY(IES) and fixed account options available under this contract, SEE INVESTMENT OPTIONS PAGE 15. Anchor National Life Insurance Company (Anchor National, The Company, Us, We) issues the Seasons Select II Variable Annuity. When you purchase a Seasons Select II Variable Annuity, a contract exists between you and Anchor National. The Company is a stock life insurance company organized under the laws of the state of Arizona. Its principal place of business is 1 SunAmerica Center, Los Angeles, California 90067. The Company conducts life insurance and annuity business in the District of Columbia and all states except New York. Anchor National is an indirect, wholly owned subsidiary of American International Group, Inc., a Delaware corporation. Seasons Select II may not currently be available in all states. Please check with your financial adviser regarding availability in your state. This annuity is designed for investors whose personal circumstances allow for a long-term investment time horizon, to assist in contributing to retirement savings. As a function of the federal tax code you may be assessed a 10% federal tax penalty on any withdrawal made prior to your reaching age 59 1/2. Additionally, this contract provides 10 that you will be charged a withdrawal charge on each Purchase Payment withdrawn if that Purchase Payment has not been invested in this contract for at least 7 years, or 9 years if you elect to participate in the Select Rewards Program. Because of these potential penalties, you should fully discuss all of the benefits and risks of this contract with your financial adviser prior to purchase. PURCHASING A SEASONS SELECT II VARIABLE ANNUITY - -------------------------------------------------------------------------------- An initial Purchase Payment is the money you give us to buy a contract. Any additional money you give us to invest in the contract after purchase is a subsequent Purchase Payment. This chart shows the minimum initial and subsequent Purchase Payments permitted under your contract. These amounts depend upon whether a contract is Qualified or Non-qualified for tax purposes.
MINIMUM MINIMUM INITIAL SUBSEQUENT PURCHASE PAYMENT PURCHASE PAYMENT ---------------- ---------------- Qualified $2,000 $500 Non-qualified $5,000 $500
Prior Company approval is required to accept Purchase Payments greater than $1,500,000. The Company reserves the right to refuse any Purchase Payment including one which would cause the contact value or Purchase Payments to exceed $1,500,000 at the time of the Purchase Payment. Also, the optional Automatic Payment Plan allows you to make subsequent payments as small as $50.00. We may refuse any Purchase Payment. In general, we will not issue a Qualified contract to anyone who is age 70 1/2 or older, unless they certify to us that the minimum distribution required by the federal tax code is being made. In addition, we may not issue a contract to anyone over age 90. You may not elect the optional enhanced death benefit or participate in the Select Rewards Program if you are over age 80 at the time of contract issue. ALLOCATION OF PURCHASE PAYMENTS We invest your Purchase Payments in the fixed accounts, SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) according to your instructions. If we receive a Purchase Payment without allocation instructions, we will invest the money according to your last allocation instructions. Purchase Payments are applied to your contract based upon the value of the variable investment option next determined after receipt of your money. SEE INVESTMENT OPTIONS PAGE 15. In order to issue your contract, we must receive your completed application, Purchase Payment allocation instructions and any other required paper work at our Annuity Service Center. We allocate your initial purchase payment within two days of receiving it. If we do not have complete information necessary to issue your contract, we will contact you. If we do not have the information necessary to issue your contract within 5 business days we will: - Send your money back to you; or - Ask your permission to keep your money until we get the information necessary to issue the contract. SELECT REWARDS PROGRAM If you elect to participate in the Select Rewards Program at contract issue, we contribute an Upfront Payment Enhancement and, if applicable, a Deferred Payment Enhancement to your contract in conjunction with each Purchase Payment you invest during the life of your contract. If you elect to participate in this program, all 11 Purchase Payments are subject to a nine year withdrawal charge schedule. SEE WITHDRAWAL CHARGES ON PAGE 30. If you make an early withdrawal of Purchase Payments, we may effectively recoup the amount of any bonuses applicable to any payment withdrawn. SEE EXPENSES, PAGE 29. You may not elect to participate in this program if you are over age 80 at the time of contract issue. Amounts we contribute to your contract under this program are considered earnings and are allocated to your contract as described below. Purchase Payments may not be invested in the 6-month or the 1-year Dollar Cost Averaging fixed accounts if you participate in the Select Rewards Program. However, you may use the 1-year fixed account option as a Dollar Cost Averaging source account. ENHANCEMENT LEVELS The Upfront Payment Enhancement Rate, Deferred Payment Enhancement Rate and Deferred Payment Enhancement Date may be determined based on stated Enhancement Levels. Each Enhancement Level is a range of dollar amounts which may correspond to different enhancement rates and dates. Enhancement Levels may change from time to time, at our sole discretion. The Enhancement Level applicable to your initial Purchase Payment is determined by the amount of that initial Purchase Payment. With respect to any subsequent Purchase Payments we determine your Enhancement Level by adding to your contract value on the date we receive each subsequent Purchase Payment plus the amount of the subsequent Purchase Payment. UPFRONT PAYMENT ENHANCEMENT An Upfront Payment Enhancement is an amount we add to your contract on the day we receive a Purchase Payment. We calculate an Upfront Payment Enhancement amount as a percentage (the "Upfront Payment Enhancement Rate") of each Purchase Payment. We periodically review and establish the Upfront Payment Enhancement Rate, which may increase or decrease at any time, but will never be less than 2%. The applicable Upfront Payment Enhancement Rate is that which is in effect for any applicable Enhancement Level, when we receive each Purchase Payment under your contract. The Upfront Payment Enhancement amounts are allocated among the fixed and variable investment options according to the current allocation instructions in effect when we receive each Purchase Payment. DEFERRED PAYMENT ENHANCEMENT A Deferred Payment Enhancement is an amount we may add to your contract on a future date (the "Deferred Payment Enhancement Date"). We calculate the Deferred Payment Enhancement amount, if any, as a percentage of each Purchase Payment (the "Deferred Payment Enhancement Rate"). We periodically review and establish the Deferred Payment Enhancement Rates and Deferred Payment Enhancement Dates. The Deferred Payment Enhancement Rate being offered may increase, decrease or be eliminated by us, at any time. The Deferred Payment Enhancement Date, if applicable, may change at any time. The applicable Deferred Payment Enhancement Date and Deferred Payment Enhancement Rate are those which may be in effect for any applicable Enhancement Level, when we receive each Purchase Payment under your contract. Any applicable Deferred Payment Enhancement, when credited, is allocated to the Cash Management Variable Portfolio. If you withdraw any portion of a Purchase Payment, to which a Deferred Payment Enhancement applies, prior to the Deferred Payment Enhancement Date, we reduce the amount of the corresponding Deferred Payment Enhancement in the same proportion that your withdrawal (and any fees and charges associated with such withdrawals) reduces that Purchase Payment. For purposes of the Deferred Payment Enhancement, withdrawals are assumed to be taken from earnings first, then from Purchase Payments, on a first-in-first-out basis. APPENDIX B shows how we calculate any applicable Deferred Payment Enhancement amount. 12 CURRENT ENHANCEMENT LEVELS The Enhancement Levels, Upfront Payment Enhancement Rate, Deferred Payment Enhancement Rate and Deferred Payment Enhancement Date are as follows:
ENHANCEMENT UPFRONT PAYMENT DEFERRED PAYMENT DEFERRED PAYMENT LEVEL ENHANCEMENT RATE ENHANCEMENT RATE ENHANCEMENT DATE - -------------------------------------------------------------------------------------------------- Under $500,000 4% 0% N/A - -------------------------------------------------------------------------------------------------- $500,000 -- more 5% 0% N/A - --------------------------------------------------------------------------------------------------
We will not allocate any applicable Deferred Payment Enhancement to your contract if any of the following circumstances occurs prior to the Deferred Payment Enhancement Date: - You surrender your contract; - A death benefit it paid on your contract; - You switch to the Income Phase of your contract; or - You fully withdraw the corresponding Purchase Payment. 90 DAY WINDOW Contracts issued with the Select Rewards feature may be eligible for a "Look-Back Adjustment." As of the 90th day after your contract was issued, we will total your Purchase Payments made over those 90 days, without considering any investment gain or loss in contract value on those Purchase Payments. If your total Purchase Payments bring you to an Enhancement Level which, as of the date we issued your contract, would have provided for a higher Upfront and/or any applicable Deferred Payment Enhancement Rate on each Purchase Payment, you will get the benefit of the Enhancement Rate(s) that were applicable to that higher Enhancement Level at the time your contract was issued. We will add any applicable Upfront Look Back Adjustment to your contract on the 90th day following the date of contract issue. We will send you a confirmation indicating any applicable Upfront and/or Deferred Look Back Adjustment, on or about the 90th day following the date of contract issuance. We will allocate any applicable Upfront Look Back Adjustment according to your then-current allocation instructions on file for subsequent Purchase Payments at the time we make the contribution and if applicable, to the Cash Management Portfolio, for a Deferred Look Back Adjustment. APPENDIX B provides an example of the 90 Day Window Provision. The Select Rewards Program may not be available to you. Please check with your financial adviser or representative regarding the availability of this program. WE RESERVE THE RIGHT TO MODIFY, SUSPEND OR TERMINATE THE SELECT REWARDS PROGRAM (IN ITS ENTIRETY OR ANY COMPONENT) AT ANY TIME. Check with your representative for information on the Upfront Payment Enhancement Rate, Deferred Payment Enhancement Rate and Deferred Payment Enhancement Date. ACCUMULATION UNITS The value of the variable portion of your contract will go up or down depending upon the investment performance of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) you select. In order to keep track of the value of your contract, we use a unit of measure called an Accumulation Unit which works like a share of a mutual fund. During the Income Phase, we call them Annuity Units. 13 An Accumulation Unit value is determined each day that the New York Stock Exchange ("NYSE") is open. We calculate an Accumulation Unit for each STRATEGY, SELECT PORTFOLIO or FOCUSED PORTFOLIO after the NYSE closes each day. We do this by: 1. determining the total value of money invested in a particular STRATEGY, SELECT PORTFOLIO or FOCUSED PORTFOLIO; 2. subtracting from that amount any asset-based charges and any other charges such as taxes we have deducted; and 3. dividing this amount by the number of outstanding Accumulation Units. EXAMPLE (CONTRACTS WITHOUT SELECT REWARDS): We receive a $25,000 Purchase Payment from you on Wednesday. You allocate the money to the Focus Growth Portfolio. We determine that the value of an Accumulation Unit for the Focus Growth Portfolio is $11.10 when the NYSE closes on Wednesday. We then divide $25,000 by $11.10 and credit your contract on Wednesday night with 2,252.2523 Accumulation Units for the Focus Growth Portfolio. EXAMPLE (CONTRACTS WITH SELECT REWARDS): We receive a $25,000 Purchase Payment from you on Wednesday. You allocate the money to the Focus Growth Portfolio. If the Upfront Payment Enhancement is 2.00% of your Purchase Payment, we would add an Upfront Payment Enhancement of $500 to your contract. We determine that the value of an Accumulation Unit for the Focus Growth Portfolio is $11.10 when the NYSE closes on Wednesday. We then divide $25,500 by $11.10 and credit your contract on Wednesday with 2,297.2973 Accumulation Units for the Focus Growth Portfolio. FREE LOOK You may cancel your contract within ten days after receiving it (or longer if required by state law). We call this a "free look." To cancel, you must mail the contract along with your free look request to our Annuity Service Center at P.O. Box 54299, Los Angeles, California 90054-0299. If you decide to cancel your contract during the free look period, we will refund to you the value of your contract on the day we receive your request MINUS the Free Look Payment Enhancement Deduction, if applicable. The Free Look Payment Enhancement Deduction is equal of the lesser of (1) the value of any Payment Enhancement(s) on the day we receive your free look request; or (2) the Payment Enhancement amount(s), if any, which we allocated to your contract. Thus, you receive any gain and we bear any loss on any Payment Enhancement(s) if you decide to cancel your contract during the free look period. Certain states require us to return your Purchase Payments upon a free look request. Additionally, all contracts issued as an IRA require the full return of Purchase Payments upon a free look. With respect to those contracts, we reserve the right to put your money in the Cash Management investment option during the free look period and will allocate your money according to your instructions at the end of the applicable free look period. Currently, we do not put your money in the Cash Management investment option during the free look period unless you allocate your money to it. If your contract was issued in a state requiring return of Purchase Payments or as an IRA and you cancel your contract during the free look period, we return the greater of (1) your Purchase Payments; or (2) the value of your contract MINUS the Free Look Payment Enhancement Deduction, if applicable. At the end of the free look period, we allocate your money according to your instructions. INVESTMENT OPTIONS - -------------------------------------------------------------------------------- The contract offers variable investment options which we call SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGIES, and fixed investment options. We designed the contract to meet your varying investment needs over time. You can achieve this by using the SELECT PORTFOLIOS, FOCUSED 14 PORTFOLIOS and/or STRATEGIES alone or in concert with the fixed investment options. The SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGIES operate similar to a mutual fund but are only available through the purchase of certain variable annuities. A mixture of your investment in the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and/or STRATEGIES and fixed account options may lower the risk associated with investing only in a variable investment option. VARIABLE INVESTMENT OPTIONS Each of the variable investment options of the contract invests in underlying portfolios of Seasons Series Trust. SAAMCo, an affiliate of Anchor National, manages Seasons Series Trust. SAAMCo has engaged sub-advisers to provide investment advice for certain of the underlying investment portfolios. YOU SHOULD READ THE PROSPECTUS FOR THE SEASONS SERIES TRUST CAREFULLY BEFORE INVESTING. THE TRUST PROSPECTUS WHICH IS ATTACHED HERETO CONTAINS DETAILED INFORMATION ABOUT THE UNDERLYING INVESTMENT PORTFOLIOS INCLUDING INVESTMENT OBJECTIVE AND RISK FACTORS. THE PORTFOLIOS The contract offers nine SELECT PORTFOLIOS, each with a distinct investment objective, utilizing a disciplined investing style to achieve its objective. Each SELECT PORTFOLIO invests in an underlying investment portfolio of the Seasons Series Trust. Except for the Cash Management portfolio, each underlying portfolio is multi-managed by a team of three money managers, one component of the underlying portfolios is an unmanaged component that tracks a particular target index or subset of an index. The other two components are actively managed. The unmanaged component of each underlying portfolio is intended to balance some of the risks associated with an actively traded portfolio. The contract also currently offers one FOCUSED PORTFOLIO. Each multi-managed FOCUSED PORTFOLIO offers you at least two different professional managers, one of which may be SAAMCo, and each of which advises a separate portion of the FOCUSED PORTFOLIO. Each manager actively selects a limited number of stocks that represent their best stock selections. This approach to investing results in a more concentrated portfolio, which will be less diversified than the SELECT PORTFOLIOS, and may be subject to greater market risks. 15 Each underlying PORTFOLIO and the respective managers are: SELECT PORTFOLIOS LARGE CAP COMPOSITE LARGE CAP GROWTH Bankers Trust Bankers Trust SAAMCo Goldman Sachs T. Rowe Price Janus LARGE CAP VALUE MID CAP GROWTH Bankers Trust Bankers Trust T. Rowe Price T. Rowe Price Wellington Wellington MID CAP VALUE SMALL CAP Bankers Trust Bankers Trust Goldman Sachs Lord Abbett Lord Abbett SAAMCo INTERNATIONAL EQUITY DIVERSIFIED FIXED INCOME Bankers Trust Bankers Trust Goldman Sachs Int'l SAAMCo Lord Abbett Wellington CASH MANAGEMENT SAAMCo FOCUSED PORTFOLIO FOCUS GROWTH Fred Alger Jennison Marisco Capital
PORTFOLIO OPERATION Each PORTFOLIO is designed to meet a distinct investment objective facilitated by the management philosophy of three different money managers. Generally, an equal portion of the Purchase Payments received for allocation to each PORTFOLIO will be allocated among the three managers for that PORTFOLIO. Each quarter SAAMCo will evaluate the asset allocation between the three managers of each PORTFOLIO. If SAAMCo determines that the assets have become significantly unequal in allocation among the managers, then the in-coming cash flows may be redirected in an attempt to stabilize the allocations. Generally, existing PORTFOLIO assets will not be rebalanced. However, we reserve the right to do so in the event that it is deemed necessary and not adverse to the interests of contract owners invested in the PORTFOLIO. Transfers made as a result of rebalancing a PORTFOLIO are not considered a transfer under your contract. THE STRATEGIES The contract offers four multi-manager variable investment STRATEGIES, each with a different investment objective. We designed the STRATEGIES utilizing an asset allocation approach to meet your investment needs over time, considering factors such as your age, goals and risk tolerance. However, each STRATEGY is designed to achieve different levels of growth over time. Each STRATEGY invests in three underlying investment portfolios of the Seasons Series Trust. The allocation of money among these investment portfolios varies depending on the objective of the STRATEGY. The underlying investment portfolios of Seasons Series Trust in which the STRATEGIES invest include the Asset Allocation--Diversified Growth Portfolio, the Stock Portfolio and the Multi-Managed Growth, Multi-Managed Moderate Growth, Multi-Managed Income/Equity and Multi-Managed Income Portfolios (the "Multi-Managed Portfolios"). The Asset Allocation: Diversified Growth Portfolio is managed by Putnam. The Stock Portfolio is managed by T. Rowe Price. All of the Multi-Managed Portfolios include the same three basic investment components: a growth 16 component managed by Janus, a balanced component managed by SAAMCo and a fixed income component managed by Wellington, LLP. The Growth STRATEGY and the Moderate Growth STRATEGY also have an aggressive growth component which SAAMCo manages. The percentage that any one of these components represents in each Multi-Managed Portfolio varies in accordance with the investment objective. Each STRATEGY uses an investment approach based on asset allocation. This approach is achieved by each STRATEGY investing in distinct percentages in three specific underlying funds of the Seasons Series Trust. In turn, the underlying funds invest in a combination of domestic and international stocks, bonds and cash. Based on the percentage allocation to each specific underlying fund and each underlying fund's investment approach, each STRATEGY initially has a neutral asset allocation mix of stocks, bonds and cash. At the beginning of each quarter a rebalancing occurs among the underlying funds to realign each STRATEGY with its distinct percentage investment in the three underlying funds. This rebalancing is designed to help maintain the neutral asset allocation mix for each STRATEGY. The pie charts on the following pages demonstrate: - the neutral asset allocation mix for each STRATEGY; and - the percentage allocation in which each STRATEGY invests. STRATEGY REBALANCING Each STRATEGY is designed to meet its investment objective by allocating a portion of your money to three different investment portfolios. In order to maintain the mix of investment portfolios consistent with each STRATEGY's objective, each STRATEGY within your contract is rebalanced each quarter. On the first business day of each quarter (or as close to such date as is administratively practicable) your money will be allocated among the various investment portfolios according to the percentages set forth on the prior pages. Additionally, within each Multi-Managed Portfolio, your money will be rebalanced among the various components. We also reserve the right to rebalance any STRATEGY more frequently if rebalancing is, deemed necessary and not adverse to the interests of contract owners invested in such STRATEGY. Rebalancing a STRATEGY may involve shifting a portion of assets out of underlying investment portfolios with higher returns into underlying investment portfolios with relatively lower returns. Transfers made as a result of rebalancing a STRATEGY are not counted against your fifteen free transfers per year. 17 GROWTH GOAL: Long-term growth of capital, allocating its assets primarily to stocks. This STRATEGY may be best suited for those with longer periods to invest. Stocks.............................. 80% Bonds............................... 15% Cash................................ 5%
UNDERLYING INVESTMENT PORTFOLIOS & MANAGERS MULTI-MANAGED GROWTH PORTFOLIO 50% Managed by: Janus Capital Corporation SunAmerica Asset Management Corp. Wellington Management Company, LLP STOCK PORTFOLIO 25% Managed by T. Rowe Price Associates, Inc. ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO 25% Managed by Putnam Investment Management, Inc.
MODERATE GROWTH GOAL: Growth of capital through investments in equities, with a secondary objective of conservation of principal by allocating more of its assets to bonds than the Growth STRATEGY. This STRATEGY may be best suited for those nearing retirement years but still earning income. Stocks.............................. 70% Bonds............................... 25% Cash................................ 5%
UNDERLYING INVESTMENT PORTFOLIOS & MANAGERS MULTI-MANAGED MODERATE GROWTH PORTFOLIO 55% Managed by: Janus Capital Corporation SunAmerica Asset Management Corp. Wellington Management Company, LLP STOCK PORTFOLIO 20% Managed by T. Rowe Price Associates, Inc. ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO 25% Managed by Putnam Investment Management, Inc.
18 BALANCED GROWTH GOAL: Focuses on conservation of principal by investing in a more balanced weighting of stocks and bonds, with a secondary objective of seeking a high total return. This STRATEGY may be best suited for those approaching retirement and with less tolerance for investment risk. Stocks.............................. 55% Bonds............................... 40% Cash................................ 5%
UNDERLYING INVESTMENT PORTFOLIOS & MANAGERS MULTI-MANAGED INCOME/EQUITY PORTFOLIO 55% Managed by: Janus Capital Corporation SunAmerica Asset Management Corp. Wellington Management Company, LLP STOCK PORTFOLIO 20% Managed by T. Rowe Price Associates, Inc. ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO 25% Managed by Putnam Investment Management, Inc.
CONSERVATIVE GROWTH GOAL: Capital preservation while maintaining some potential for growth over the long term. This STRATEGY may be best suited for those with lower investment risk tolerance. Stocks.............................. 42% Bonds............................... 53% Cash................................ 5%
UNDERLYING INVESTMENT PORTFOLIOS & MANAGERS MULTI-MANAGED INCOME PORTFOLIO 60% Managed by: Janus Capital Corporation SunAmerica Asset Management Corp. Wellington Management Company, LLP STOCK PORTFOLIO 15% Managed by T. Rowe Price Associates, Inc. ASSET ALLOCATION: DIVERSIFIED GROWTH PORTFOLIO 25% Managed by Putnam Investment Management, Inc.
19 FIXED INVESTMENT OPTIONS The contract also offers seven fixed investment options. Anchor National will guarantee the interest rate earned on money you allocate to any of these fixed investment options. We currently offer fixed investment options for periods of one, three, five, seven and ten years, which we call guarantee periods. In Maryland and Washington only the one year fixed account option is available. Additionally, if you do not elect to enroll in the Select Rewards Program, you have the option of allocating your money to the 6-month and/or 1-year DCA fixed account. We guarantee the interest rate for money allocated to the six-month DCA fixed account and/or the one year DCA fixed account (the "DCA fixed accounts") which are available only in conjunction with the Dollar Cost Averaging Program. The 6-month and 1-year DCA fixed account options are not available if you participate in the Select Rewards Program. Please see the section on the Dollar Cost Averaging Program on page 22 for additional information about, including limitations on, the availability and operation of the DCA fixed accounts. The DCA fixed accounts are only available for new Purchase Payments. All of these fixed account options pay interest at rates set and guaranteed by Anchor National. Interest rates may differ from time to time and are set at our sole discretion. We will never credit less than a 3% annual effective rate to any of the fixed account options. The interest rate offered for new Purchase Payments may differ from that offered for subsequent Purchase Payments and money already in the fixed account options. In addition, different guarantee periods offer different interest rates. Rates for specified payments are declared at the beginning of the guarantee period and do not change during the specified period. There are three scenarios in which you may put money into the fixed account options. In each scenario your money may be credited a different rate of interest as follows: - INITIAL RATE: Rate credited to new Purchase Payments allocated to the fixed account when you purchase your contract. - CURRENT RATE: Rate credited to subsequent Purchase Payments allocated to the fixed account. - RENEWAL RATE: Rate credited to money transferred from a fixed account or one of the STRATEGIES, SELECT PORTFOLIOS or FOCUSED PORTFOLIOS into a fixed account and to money remaining in a fixed account after expiration of a guarantee period. Each of these rates may differ from one and other. Although once declared the applicable rate is guaranteed until the guarantee period expires. The DCA fixed accounts also credit a fixed rate of interest. Interest is credited to amounts allocated to the 1-year or 6-month DCA fixed account while your investment is systematically transferred to the variable Portfolios. The rates applicable to the DCA fixed accounts may differ from each other and/or the other fixed account options but will never be less than an effective rate of 3%. SEE DOLLAR COST AVERAGING ON PAGE 22 for more information. When a guarantee period ends, you may leave your money in the same guarantee period. You may also reallocate money to another fixed investment option (other than the DCA fixed accounts) or to any of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES). If you want to reallocate your money, you must contact us within 30 days after the end of the current guarantee period and instruct us how to reallocate your money. If we do not hear from you, we will keep your money in the same guarantee period where it will earn the renewal interest rate applicable at that time. MARKET VALUE ADJUSTMENT NOTE: THE FOLLOWING DISCUSSION APPLIES TO THE 3, 5, 7 OR 10 YEAR FIXED INVESTMENT OPTIONS ONLY. THESE OPTIONS ARE NOT AVAILABLE IN MARYLAND, OREGON AND WASHINGTON AND MAY NOT BE AVAILABLE IN OTHER STATES. PLEASE CONTACT YOUR FINANCIAL REPRESENTATIVE FOR MORE INFORMATION. THIS DISCUSSION DOES NOT APPLY TO WITHDRAWALS TO PAY A DEATH BENEFIT OR CONTRACT FEES AND CHARGES. 20 If you take money out of the 3, 5, 7 or 10 year fixed investment options before the end of the guarantee period, we make an adjustment to your contract (the "market value adjustment" or "MVA"). This market value adjustment reflects any difference in the interest rate environment between the time you place your money in the fixed investment option and the time when you withdraw that money. This adjustment can increase or decrease your contract value. You have 30 days after the end of each guarantee period to reallocate your funds without incurring a market value adjustment. We will not assess a market value adjustment against withdrawals made (1) to pay a death benefit; (2) to pay contract fees and charges; or (3) to begin the income phase of your contract on the latest annuity date. We calculate the market value adjustment by doing a comparison between current rates and the rate being credited to you in the fixed investment option. For the current rate we use a rate being offered by us for a guarantee period that is equal to the time remaining in the guarantee period from which you seek withdrawal. If we are not currently offering a guarantee period for that period of time, we determine an applicable rate by using a formula to arrive at a number between the interest rates currently offered for the two closest periods available. Generally, if interest rates drop between the time you put your money into the fixed investment options and the time you take it out, we credit a positive adjustment to your contract. On the other hand, if interest rates increase during the same period, we post a negative adjustment to your contract. Where the market value adjustment is negative, we first deduct the adjustment from any money remaining in the fixed investment option. If there is not enough money in the fixed investment option to meet the negative deduction, we deduct the remainder from your withdrawal. Where the market value adjustments is positive, we add the adjustment to your withdrawal amount. For withdrawals under the systematic withdrawal program that result in a negative market value adjustment, the MVA amount will be deducted from your withdrawal. The one year fixed investment option and the DCA fixed accounts do not impose a market value adjustment. These fixed investment options are not registered under the Securities Act of 1933 and are not subject to the provisions of the Investment Company Act of 1940. Please see Appendix C for more information on how we calculate the market value adjustment. TRANSFERS DURING THE ACCUMULATION PHASE Except as provided in the next sentence with respect to the DCA fixed accounts, you can transfer money among the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S), STRATEGY(IES) and the fixed investment options by written request or by telephone. Although you may transfer money out of the DCA fixed accounts, you may not transfer money into the DCA fixed account from any SELECT PORTFOLIO, FOCUSED PORTFOLIO, STRATEGY or fixed investment option. You can make transfers every year without incurring a transfer charge. Transfers out of a 3, 5, 7 or 10 year fixed investment option may be subject to a market value adjustment. The minimum amount you can transfer is $500, or a lesser amount if you transfer the entire balance from a SELECT PORTFOLIO, FOCUSED PORTFOLIO, STRATEGY or a fixed investment option. Any money remaining in a SELECT PORTFOLIO, FOCUSED PORTFOLIO, STRATEGY or fixed investment option after making a transfer must equal at least $500. Your request for transfer must clearly state which investment option(s) are involved and the amount you want to transfer. Please see the section below on Dollar Cost Averaging for specific rules regarding the DCA fixed accounts. We will accept transfers by telephone unless you specify otherwise on your contract application. When receiving instructions over the telephone, we follow appropriate procedures to provide reasonable assurance that the transactions executed are genuine. Thus, we are not responsible for any claim, loss or expense from any error resulting from instructions received over the telephone. 21 We will accept transfers over the internet unless you specify otherwise on your contract application. When receiving internet account transfers, we follow appropriate procedures to provide reasonable assurance that the transactions executed are genuine. Thus, we are not responsible for any claim, loss or expense from any error resulting from instructions received over the internet. If we fail to follow our procedures we may be liable for any losses due to unauthorized or fraudulent transactions. For information regarding transfers during the Income Phase, SEE INCOME OPTIONS, PAGE 32. We may limit the number of transfers in any contract year or refuse any transfer request for you or others invested in the contract if we believe that excessive trading or a specific transfer request or group transfer requests may have a detrimental effect on unit values or the share prices of the underlying portfolios. Where permitted by law, we may accept your authorization for a third party to make transfers for you subject to our rules. We reserve the right to suspend or cancel such acceptance at any time and will notify you accordingly. Additionally, we may restrict the investment options available for transfers during any period in which such third party acts for you. We notify such third party beforehand regarding any restrictions. However, we will not enforce these restrictions if we are satisfied that: - such third party has been appointed by a court of competent jurisdiction to act on your behalf; or - such third party is a trustee/fiduciary appointed, by you or for you, to act on your behalf for all your financial affairs. We may provide administrative or other support services to independent third parties you authorize to make transfers on your behalf. We do not currently charge you extra for providing these support services. This includes, but is not limited to, transfers between investment options in accordance with market timing strategies. Such independent third parties may or may not be appointed with us for the sale of annuities. However, WE DO NOT ENGAGE ANY THIRD PARTIES TO OFFER INVESTMENT ALLOCATION SERVICES OF ANY TYPE. WE TAKE NO RESPONSIBILITY FOR THE INVESTMENT ALLOCATION AND TRANSFERS TRANSACTED ON YOUR BEHALF BY SUCH THIRD PARTIES OR FOR ANY INVESTMENT ALLOCATION RECOMMENDATIONS MADE BY SUCH PARTIES. We reserve the right to modify, suspend or terminate the transfer privileges at any time. DOLLAR COST AVERAGING The Dollar Cost Averaging ("DCA") program allows you to invest gradually in the variable investment options. Under the program you systematically transfer a set dollar amount or percentage of any SELECT PORTFOLIO, FOCUSED PORTFOLIO and/or STRATEGY or from the 1-year fixed account option (source accounts) to any other SELECT PORTFOLIO, FOCUSED PORTFOLIO or STRATEGY. Transfers may be monthly or quarterly. You may change the frequency at any time by notifying us in writing. We also offer the 6-month and a 1-year DCA fixed accounts exclusively to facilitate this program. If you elect to participate in the Select Rewards Program, the 6-month and 1-year DCA fixed accounts are not available under your contract. The DCA fixed accounts only accept new Purchase Payments. You can not transfer money already in your contract into these options. If you allocate a Purchase Payment into a DCA fixed account, we transfer all your money allocated to that account into the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) you select over the selected 6-month or 1-year period. You cannot change the option or the frequency of transfers once selected. The minimum transfer amount if you use the 1-year or 6-month DCA fixed accounts to provide dollar cost averaging is $100. 22 If allocated to the 6-month DCA fixed account, we transfer your money over a maximum of 6 monthly transfers. We base the actual number of transfers on the total amount allocated to the account. For example, if you allocate $500 to the 6-month DCA fixed account, we transfer your money over a period of five months, so that each payment complies with the $100 per transfer minimum. We determine the amount of the transfers from the 1-year DCA fixed account based on - the total amount of money allocated to the account, and - the frequency of transfers selected. For example, let's say you allocate $1,000 to the 1-year DCA account. You select monthly transfers. We completely transfer all of your money to the selected investment options over a period of ten months. You may terminate your DCA program at any time. If money remains in the DCA fixed account, we transfer the remaining money to the 1-year fixed investment option, unless we receive different instructions from you. The DCA program is designed to lessen the impact of market fluctuations on your investment. However, we cannot ensure that you will make a profit. When you elect the DCA Program, you are continuously investing in securities regardless of fluctuating price levels. You should consider your tolerance for investing through periods of fluctuating price levels. We reserve the right to modify, suspend or terminate this program at any time. EXAMPLE: Assume that you want to gradually move $750 each quarter from the Cash Management Portfolio to the Mid-Cap Value SELECT PORTFOLIO over six quarters. You set up dollar cost averaging and purchase Accumulation Units at the following values:
QUARTER ACCUMULATION UNIT UNITS PURCHASED - ------- ----------------- --------------- 1 $ 7.50 100 2 $ 5.00 150 3 $10.00 75 4 $ 7.50 100 5 $ 5.00 150 6 $ 7.50 100
You paid an average price of only $6.67 per Accumulation Unit over six quarters, while the average market price actually was $7.08. By investing an equal amount of money each month, you automatically buy more Accumulation Units when the market price is low and fewer Accumulation Units when the market price is high. This example is for illustrative purposes only. PRINCIPAL ADVANTAGE PROGRAM The Principal Advantage Program allows you to invest in one or more of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) without putting your principal at direct risk. The program accomplishes this by allocating your investment strategically between the fixed investment options (other than the DCA fixed accounts) and the SELECT PORTFOLIO, FOCUSED PORTFOLIO or STRATEGY you select. You decide how much you want to invest and approximately when you want a return of principal. We calculate how much of your Purchase Payment needs to be allocated to the particular fixed investment option to ensure that it grows to an amount equal to your total principal invested under this program. We reserve the right to modify, suspend or terminate this program at any time. 23 EXAMPLE: Assume that you want to allocate a portion of your initial Purchase Payment of $100,000 to the fixed investment option. You want the amount allocated to the fixed investment option to grow to $100,000 in 7 years. If the 7-year fixed investment option is offering a 5% interest rate, we will allocate $71,069 to the 7-year fixed investment option to ensure that this amount will grow to $100,000 at the end of the 7-year period. The remaining $28,931 may be allocated among the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES), as determined by you, to provide opportunity for greater growth. VOTING RIGHTS Anchor National is the legal owner of the Seasons Series Trust shares. However, when an underlying portfolio solicits proxies in conjunction with a vote of shareholders, we must obtain your instructions on how to vote those shares. We vote all of the shares we own in proportion to your instructions. This includes any shares we own on our own behalf. Should we determine that we are no longer required to comply with these rules, we will vote the shares in our own right. SUBSTITUTION If any of the underlying portfolios become unavailable for investment, we may be required to substitute shares of another investment portfolio. We will seek prior approval of the SEC and give you notice before substituting shares. ACCESS TO YOUR MONEY - -------------------------------------------------------------------------------- You can access money in your contract in two ways: - by making a partial or total withdrawal, and/or; - by receiving income payments during the Income Phase. SEE INCOME OPTIONS, PAGE 32. Generally, we deduct a withdrawal charge applicable to any total or partial withdrawal and a market value adjustment if a withdrawal comes from the 3, 5, 7 or 10 year fixed investment options prior to the end of a guarantee period. If you withdraw your entire contract value, we also deduct any applicable premium taxes and a contract maintenance fee. SEE EXPENSES, PAGE 30. We calculate charges due on a total withdrawal on the day after we receive your request and other required paper work. We return your contract value less any applicable fees and charges. FREE WITHDRAWAL PROVISION Your contract provides for a free withdrawal amount each year. A free withdrawal amount is the portion of your account that we allow you to take out each year without being charged a surrender penalty. However, upon a future full surrender of your contract we will recoup any surrender charges which would have been due at the time the free withdrawals were taken if your prior free withdrawal(s) had not been free. Additionally, if you participate in the Select Rewards Program, you will not receive any applicable Deferred Payment Enhancement, if you fully withdraw a Purchase Payment or your contract value prior to the corresponding Payment Enhancement Date. SEE SELECT REWARDS PROGRAM ON PAGE . To determine your free withdrawal amount and your surrender charge, we refer to two special terms. These are penalty free earnings and the Total Invested Amount. 24 The penalty-free earnings portion of your contract is simply your account value less your Total Invested Amount. The Total Invested Amount is the total of all Purchase Payments you have made into the contract less portions of some prior withdrawals you made. The portions of prior withdrawals that reduce your Total Invested Amount are as follows: 1. Any free withdrawals in any year that were in excess of your penalty free earnings and were based on the part of the Total Investment Amount that was no longer subject to surrender charges at the time of the withdrawal. 2. Any prior withdrawals of the Total Investment Amount on which you already paid a surrender penalty, plus any surrender charge paid on such a withdrawal. When you make a withdrawal, we assume that it is taken from penalty-free earnings first, then from the Total Invested Amount on a first-in, first-out basis. This means that you can also access your Purchase Payments which are no longer subject to a surrender charge before those Purchase Payments which are still subject to the surrender charge. During the first year after we issue your contract your free withdrawal amount is the greater of: 1. Your penalty-free earnings, or; 2. If you are participating in the Systematic Withdrawal program, a total of 10% of your Total Invested Amount less any withdrawals taken during the contract year. After the first contract year, you can take out the greater of the following amounts each year: 1. Your penalty free earnings and any portion of your Total Invested Amount no longer subject to surrender charges, or; 2. 10% of the portion of your Total Invested Amount that has been in your contract for at least one year less any withdrawals taken during the contract year. Purchase Payments, above and beyond the amount of your free withdrawal amount, that are invested for less than 7 years, or 9 years if you elect to participate in the Select Rewards Program, and withdrawn will result in your paying a penalty in the form of a surrender charge. The amount of the charge and how it applies are discussed more fully below. You should consider, before purchasing this contract, the effect this charge will have on your investment if you need to withdraw more money than the free withdrawal amount. You should fully discuss this decision with your financial advisor. The withdrawal charge percentage is determined by the age of the Purchase Payment remaining in the contract at the time of the withdrawal. For the purpose of calculating the withdrawal charge, any prior Free Withdrawal is not subtracted from the total Purchase Payments still subject to withdrawal charges. For example, you make an initial Purchase Payment of $100,000. For purposes of this example we will assume a 0% growth rate over the life of the contract, no election of the Select Rewards Program, Income Protector Program or the enhanced death benefit and no subsequent Purchase Payments. In contract year 2 and year 3, you take out your maximum free withdrawal of $10,000 for each year. After those free withdrawals your contract value is $80,000. In contract year 5 you request a full surrender of your contract. We will apply the following calculation, A - (B X C) = D, where: A = Your contract value at the time of your request for surrender ($80,000) B = The amount of your Purchase Payments still subject to withdrawal charge ($100,000) C = The withdrawal charge percentage applicable to the age of each Purchase Payment (4%) [B X C = $4,000] D = Your full surrender value ($76,000) 25 The minimum partial withdrawal amount is $1,000. We require that the value left in any SELECT PORTFOLIO, FOCUSED PORTFOLIO, STRATEGY or fixed account be at least $500 after the withdrawal. You must send a written withdrawal request. Unless you provide us with different instructions, partial withdrawals will be made in equal amounts from each SELECT PORTFOLIO, FOCUSED PORTFOLIO, STRATEGY and the fixed investment option in which your contract is invested. Withdrawals from fixed investment options prior to the end of the guarantee period may result in a market value adjustment. We may be required to suspend or postpone the payment of a withdrawal for any period of time when: (1) the NYSE is closed (other than a customary weekend and holiday closings); (2) trading with the NYSE is restricted; (3) an emergency exists such that disposal of or determination of the value of shares of the Portfolios is not reasonably practicable; (4) the SEC, by order, so permits for the protection of contract owners. Additionally, we reserve the right to defer payments for a withdrawal from a fixed investment option. Such deferrals are limited to no longer than six months. SYSTEMATIC WITHDRAWAL PROGRAM If you elect, we use money in your contract to pay you monthly, quarterly, semi-annual or annual payments during the Accumulation Phase. Electronic transfer of these funds to your bank account is also available. The minimum amount of each withdrawal is $250. There must be at least $500 remaining in your contract at all times. Withdrawals may be taxable and a 10% IRS tax penalty may apply if you are under age 59 1/2. Any withdrawals you make using this program count against your free withdrawal amount as described above. Withdrawals in excess of that amount may incur a withdrawal charge. There is no additional charge for participating in this program. The program is not available to everyone. Please check with our Annuity Service Center, which can provide the necessary enrollment forms. We reserve the right to modify, suspend or terminate this program at any time. MINIMUM CONTRACT VALUE Where permitted by state law, we may terminate your contract if both of the following occur: (1) your contract is less than $500 as a result of withdrawals; and (2) you have not made any Purchase Payments during the past three years. We will provide you with sixty days written notice. At the end of the notice period, we will distribute the contract's remaining value to you. QUALIFIED CONTRACT OWNERS Certain Qualified plans restrict and/or prohibit your ability to withdraw money from your contract. SEE TAXES, PAGE 37 for a more detailed explanation. 26 DEATH BENEFIT - -------------------------------------------------------------------------------- If you, or the joint annuitant, if one exists, should die during the Accumulation Phase, your Beneficiary will receive a death benefit. The death benefit options are discussed in detail below. The death benefit is not paid after you switch to the Income Phase. If you die during the Income Phase, your Beneficiary will receive any remaining guaranteed income payments in accordance with the income option you choose. SEE INCOME OPTIONS, PAGE 32. You select the Beneficiary to receive any amounts payable on death. You may change the Beneficiary at any time, unless you previously made an irrevocable Beneficiary designation. A new Beneficiary designation is not effective until we record the change. The death benefit will be paid out when we receive adequate proof of death: (1) a certified copy of a death certificate; (2) a certified copy of a decree of court of competent jurisdiction as to the finding of death; (3) a written statement by a medical doctor who attended the deceased at the time of death; or (4) any other proof satisfactory to us. We may also require additional documentation or proof in order for the death benefit to be paid. Generally, the death benefit payment must begin immediately upon receipt of all necessary documents and, in any event, must be paid within 5 years of the date of death. The Beneficiary may, in the alternative, elect to have the death benefit payable in the form of an annuity. If the Beneficiary elects an income option, it must be paid over the Beneficiary's lifetime or for a period not extending beyond the Beneficiary's life expectancy. Income payments must begin within one year of your death. If the Beneficiary is the spouse of the owner, he or she can elect to continue the contract at the then current value, rather than receive a death benefit. If the Beneficiary does not make a specific election as to how they want the death benefit distributed within sixty days of our receipt of adequate proof of death, it will be paid in a lump sum. If the Annuitant dies before annuity payments begin, you can name a new Annuitant. If no Annuitant is named within 30 days, you will become the Annuitant. However, if the owner is a non-natural person (for example, a corporation), then the death of the Annuitant will be treated as the death of the owner, no new Annuitant may be named and the death benefit will be paid. This contract provides three death benefit options: the standard death benefit which is automatically included in your contract for no additional fee, and a choice between two optional enhanced death benefits, for an additional fee. If you choose one of the two enhanced death benefits, you must do so at the time of contract application and you never terminate the election thereafter. The term, "Net Purchase Payment" is used frequently explaining the death benefit options below. We define Net Purchase Payment as total Purchase Payments reduced by any partial withdrawals (and any fees or charges applicable to such withdrawals) in the same proportion that the contract value was reduced on the date of such withdrawal. STANDARD DEATH BENEFIT The standard death benefit on your contract, if you (or in the case of joint ownership, the younger owner) are age 74 or younger at the time of death, is the greater of: 1. Net Purchase Payments compounded at a 3% annual growth rate from the date of issue until the date of death, plus any subsequent Net Purchase Payments; or 2. the value of your contract at the time we receive satisfactory proof of death. 27 If you (or in the case of joint ownership, the younger owner) are age 75 or older at the time of death, Net Purchase Payments are compounded at a 3% annual growth rate from date of issue until your 75th birthday. OPTIONAL ENHANCED DEATH BENEFIT If you elect the optional enhanced death benefit at the time of contract application, we will pay your Beneficiary the sum of A plus B, where: A. is the amount payable under the selected enhanced death benefit (see option 1 or 2 below); and B. is the earnings enhancement amount (see description below). A. Optional Enhanced Death Benefit Options: 1. Purchase Payment Accumulation Option -- the death benefit is the greater of: a. the value of your contract at the time we receive satisfactory proof of death; or b. Net Purchase Payments compounded to the earlier of age 80 or the date of death at a 5% annual growth rate, plus any subsequent Net Purchase Payments recorded after the date of death. This benefit will not exceed two times the Net Purchase Payments. 2. Maximum Anniversary Value Option -- the death benefit is the greater of: a. Net Purchase Payments; or b. the value of your contract at the time we receive satisfactory proof of death; or c. the maximum anniversary value on any contract anniversary prior to your 81st birthday. The anniversary value equals the value of your contract on a contract anniversary plus any subsequent Net Purchase Payments made since that anniversary. B. Optional Earnings Enhancement Feature (included with Selected Optional Death Benefit): The earnings enhancement feature can increase the death benefit amount. The earnings enhancement is only available if you elect one of the optional enhanced death benefits at the time of contract application. The earnings enhancement amount is added to the death benefits payable under the Purchase Payment Accumulation option or the Maximum Anniversary Value option. WHAT IS THE EARNINGS ENHANCEMENT AMOUNT? For purposes of determining the amount of the earnings enhancement, the amount of your earnings is first determined. Earnings equals the amount of your contract value minus the Net Purchase Payments as of the date of death. (If the earnings amount is negative, then no earnings enhancement can be added.) If you have earnings in your contract at the time we received satisfactory proof of death, we may add a stated percentage of those earnings, subject to the maximum defined below, to your death benefit. WHAT IS THE MAXIMUM EARNINGS ENHANCEMENT? The earnings enhancement amount is subject to a maximum which is calculated using the stated percentages in the table below. The maximum earnings enhancement amount is equal to the percentage of your Net Purchase Payments. The applicable percentage is determined by a schedule based on the number of years you have owned your contract prior to the date of death. 28
EARNINGS ENHANCEMENT MAXIMUM CONTRACT YEAR OF DEATH* PERCENTAGE** EARNINGS ENHANCEMENT*** - ---------------------------------------------------------------------------------------------------- Years 0-4 25% 25% - ---------------------------------------------------------------------------------------------------- Years 5-9 40% 40% - ---------------------------------------------------------------------------------------------------- Years 10+ 50% 50% - ----------------------------------------------------------------------------------------------------
* Contract Year of Death is the number of full years since you have owned your contract to the date of death. ** Earnings Enhancement Percentage is a percentage applied to the earnings in your contract since you have owned your contract to your date of death. *** Maximum Earnings Enhancement Percentage is the percentage of Net Purchase Payments that is used to calculate the maximum benefit of earnings enhancement. You must elect the enhanced death benefit at the time of contract application. Once elected, you may not terminate or change the option you have selected. We assess a daily charge for the enhanced death benefit. The charge is equal to 0.25% of your average daily ending value of the assets you have allocated to the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES). We reserve the right to change the number of years, the earnings enhancement percentage and maximum earnings enhancement at any time. SPOUSAL CONTINUATION If the Beneficiary is your spouse ("spousal Beneficiary"), the spousal Beneficiary may elect to become the new owner and continue the contract. If the spousal Beneficiary elects to continue the contract, no death benefit is paid at that time. However, we will contribute to the contract any amount by which the death benefit that would have been payable, exceeds the contract value. This continuation contribution is only available one time, upon the death of the original owner. The amount we contribute is not considered a Purchase Payment. This amount will be calculated using the contract value and any applicable death benefit as of the original owner's date of death and after we receive the spousal Beneficiary's written request to continue the contract and satisfactory proof of death of the original owner. This amount, if any, will be added to the contract value as of the date we receive these two documents. (If the enhanced death benefit was elected by the original owner, any earnings enhancement due, will be added to the death benefit as well.) The age of the spousal beneficiary at the time of continuation ("Continuation Date") will be used in determining any future death benefits on this Contract. For purposes of determining any earnings enhancement payable upon the death of the spousal Beneficiary who elects to continue the contract, the following items in the earnings enhancement table above are modified as follows: (a) Contract Year of Death is the number of full years since the contract continuation date to the date of death of the spousal beneficiary. (b) Earnings Enhancement Percentage is a percentage applied to the earnings of your contract since the contract continuation date up to the date of death of the spousal beneficiary. (c) Maximum Earnings Enhancement Percentage is the percentage of the sum of any amount contributed to the contract on the contract continuation date plus the contract value on the continuation date reduced proportionately by any withdrawals (and any fees or charges associated to such withdrawals) that is used to calculate the maximum benefit of the earnings enhancement. 29 The spousal Beneficiary may elect to continue the contract only upon the death of the original owner. The spousal Beneficiary cannot change any contract provisions as the new owner. Upon the spousal Beneficiary's death, the entire interest of the contract must be distributed immediately under the provisions of the death benefit previously selected by the original owner. We reserve the right to modify, suspend or terminate the continuation contribution at any time. EXPENSES - -------------------------------------------------------------------------------- There are charges and expenses associated with your contract. These charges and expenses reduce your investment return. We will not increase the contract maintenance fee or withdrawal charges under your contract. However the investment charges under your contract may increase or decrease. Some states may require that we charge less than the amounts described below. INSURANCE CHARGES The amount of this charge is 1.40% annually of the value of your contract invested in the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES). We deduct the charge daily, on a pro-rata basis, from the value of your contract allocated to the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES). The insurance charge compensates us for the mortality and expense risks and the costs of contract distribution assumed by Anchor National. If these charges do not cover all of our expenses, we will pay the difference. Likewise, if these charges exceed our expenses, we will keep the difference. WITHDRAWAL CHARGES During the Accumulation Phase you may make withdrawals from your contract. However, a withdrawal charge may apply. We apply a withdrawal charge upon an early withdrawal against each Purchase Payment you put into the contract. The withdrawal charge equals a percentage of the Purchase Payment you take out of the contract. The withdrawal charge percentage declines each year a Purchase Payment is in the contract, as follows: WITHDRAWAL CHARGE WITHOUT THE SELECT REWARDS PROGRAM (SCHEDULE A)
YEAR 1 2 3 4 5 6 7 8 - --------------------- -------- -------- -------- -------- -------- -------- -------- -------- Withdrawal Charge 7% 6% 6% 5% 4% 3% 2% 0%
WITHDRAWAL CHARGE WITH THE SELECT REWARDS PROGRAM (SCHEDULE B)
YEAR 1 2 3 4 5 6 7 8 9 10 - --------------------- -------- -------- -------- -------- -------- -------- -------- -------- -------- -------- Withdrawal Charge 9% 8% 7% 6% 6% 5% 4% 3% 2% 0%
After a Purchase Payment has been in the contract for seven complete years, or nine complete years if you elect to participate in the Select Rewards Program, the withdrawal charge no longer applies to that payment. When calculating the withdrawal charge, we treat withdrawals as coming first from the Purchase Payments that have been in your contract the longest. However, for tax purposes, your withdrawals are considered earnings first, then Purchase Payments. 30 The Select Rewards feature of this contract is designed to reward long term investing. We expect that if you remain committed to this investment over the long term, we will profit as a result of fees charged over the life of your contract. Whenever possible, we deduct the withdrawal charge from the money remaining in your contract from each of your investment options on a pro-rata basis. If you withdraw all of your contract value, we deduct any applicable withdrawal charges from the amount withdrawn. The contract provides a free withdrawal amount every year. SEE ACCESS TO YOUR MONEY PAGE 24. We will not assess a withdrawal charge for money withdrawn to pay a death benefit. We do not currently assess a withdrawal charge upon election to receive income payments from your contract. Withdrawals made prior to age 59 1/2 may result in tax penalties. SEE TAXES PAGE 37. INVESTMENT CHARGES Charges are deducted from the assets of the investment portfolios underlying the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) for the advisory and other expenses of the portfolios. THE FEE TABLE BEGINNING ON PAGE 5 ILLUSTRATES THESE CHARGES AND EXPENSES. 12b-1 FEES Portfolio shares are all subject to fees imposed under the distribution plan adopted by the Seasons Series Trust pursuant to Rule 12b-1 under the Investment Company Act of 1940. The 12b-1 fee (0.15%) will not increase for the life of the contract. FOR MORE DETAILED INFORMATION ON THESE INVESTMENT CHARGES, REFER TO THE PROSPECTUS FOR THE SEASONS SERIES TRUST, ATTACHED. CONTRACT MAINTENANCE FEE During the Accumulation Phase, we subtract a contract maintenance fee from your account once per year. This charge compensates us for the cost of contract administration. We will deduct the $35 ($30 in North Dakota) contract maintenance fee on a pro-rata basis from your account value on your contract anniversary. In the states of Pennsylvania, Texas and Washington a contract maintenance fee will be deducted pro-rata from the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) in which you are invested, only. If you withdraw your entire contract value, we deduct the fee from that withdrawal. If your contract value is $50,000 or more on your contract anniversary date, we will waive the charge. This waiver is subject to change without notice. TRANSFER FEE You may make transfers between investment options, without incurring a transfer charge. However, we reserve the right to charge a fee for such transfers in the future. OPTIONAL ENHANCED DEATH BENEFIT FEE Please see page 28 of this prospectus for additional information regarding the optional enhanced death benefit fee. 31 OPTIONAL INCOME PROTECTOR FEE Please see page 35 of this prospectus for additional information regarding the Income Protector Fee. PREMIUM TAX Certain states charge the Company a tax on the premiums you pay into the contract. We deduct from your contract these premium tax charges. Currently we deduct the charge for premium taxes when you take a full withdrawal or annuitize the contract. In the future, we may assess this deduction at the time you put Purchase Payment(s) into the contract or upon payment of a death benefit. APPENDIX C provides more information about premium taxes. INCOME TAXES We do not currently deduct income taxes from your contract. We reserve the right to do so in the future. REDUCTION OR ELIMINATION OF CHARGES AND EXPENSES, AND ADDITIONAL AMOUNTS CREDITED Sometimes sales of the contracts to groups of similarly situated individuals may lower our administrative and/or sales expenses. We reserve the right to reduce or waive certain charges and expenses when this type of sale occurs. In addition, we may also credit additional interest to policies sold to such groups. We determine which groups are eligible for such treatment. Some of the criteria we evaluate to make a determination are: size of the group; amount of expected Purchase Payments; relationship existing between us and prospective purchaser; nature of the purchase; length of time a group of contracts is expected to remain active; purpose of the purchase and whether that purpose increases the likelihood that our expenses will be reduced; and/or any other factors that we believe indicate that administrative and/or sales expenses may be reduced. Anchor National may make such a determination regarding sales to its employees, it affiliates' employees and employees of currently contracted broker-dealers; its registered representatives and immediate family members of all of those described. We reserve the right to change or modify any such determination or the treatment applied to a particular group, at any time. INCOME OPTIONS - -------------------------------------------------------------------------------- ANNUITY DATE During the Income Phase, the money in your Contract is used to make regular income payments to you. You may switch to the Income Phase any time after your second contract anniversary. You select the month and year in which you want income payments to begin. The first day of that month is the Annuity Date. You may change your Annuity Date, so long as you do so at least seven days before the income payments are scheduled to begin. Once you begin receiving income payments, you cannot change your Income Option. Except as discussed under Option 5, once you begin receiving income payments, you cannot otherwise access your money through a withdrawal or surrender. If you participate in the Select Rewards Program and switch to the Income Phase prior to a Deferred Payment Enhancement Date, we will not allocate any corresponding Deferred Payment Enhancement to your contract. SEE SELECT REWARDS PROGRAM ON PAGE 11. 32 Income payments must begin on or before your 90th birthday or on your tenth contract anniversary, whichever occurs later. If you do not choose an Annuity Date, your income payments will automatically begin on this date. Certain states may require your income payments to start earlier. If the Annuity Date is past your 85th birthday, your contract could lose its status as an annuity under Federal tax laws. This may cause you to incur adverse tax consequences. In addition, certain Qualified contracts require you to take minimum distributions after you reach age 70 1/2. SEE TAXES, PAGE 37. INCOME OPTIONS Currently, this Contract offers five Income Options. If you elect to receive income payments but do not select an option, your income payments will be made in accordance with Option 4 for a period of 10 years. For income payments selected for joint lives, we pay according to Option 3. We base our calculation of income payments on the life of the Annuitant and the annuity rates set forth in your contract. As the contract owner, you may change the Annuitant at any time prior to the Annuity Date. You must notify us if the Annuitant dies before the Annuity Date and then designate a new Annuitant. OPTION 1 - LIFE INCOME ANNUITY This option provides income payments for the life of the Annuitant. Income payments stop when the Annuitant dies. OPTION 2 - JOINT AND SURVIVOR LIFE ANNUITY This option provides income payments for the life of the Annuitant and for the life of another designated person. Upon the death of either person, we will continue to make income payments during the lifetime of the survivor. Income payments stop whenever the survivor dies. OPTION 3 - JOINT AND 100% SURVIVOR LIFE ANNUITY WITH 10 OR 20 YEAR PERIOD CERTAIN This option is similar to Option 2 above, with an additional guarantee of payments for at least 10 or 20 years. If the Annuitant and the Survivor die before all of the payments have been made, the remaining payments are made to the Beneficiary under your Contract. OPTION 4 - LIFE ANNUITY WITH 10 OR 20 YEAR PERIOD CERTAIN This option is similar to Option 1 above. In addition, this option provides a guarantee that income payments will be made for at least 10 or 20 years. You select the number of years. If the Annuitant dies before all guaranteed income payments are made, the remaining income payments go to the Beneficiary under your Contract. OPTION 5 - INCOME FOR A SPECIFIED PERIOD This option provides income payments for a guaranteed period ranging from 5 to 30 years. If the Annuitant dies before all the guaranteed income payments are made, the remaining income payments are made to the Beneficiary under your contract. Additionally, if variable income payments are elected under this option, you (or the Beneficiary under the contract if the Annuitant dies prior to all guaranteed payments being made) may redeem the contract value (in full or in part) after the Annuity Date. The amount available upon such redemption would be the discounted present value of any remaining guaranteed payments. The value of an Annuity Unit, regardless of the option chosen, takes into account the Mortality and Expense Risk Charge. Since Option 5 does not contain an element of mortality risk, no benefit is derived from this charge. 33 We make income payments on a monthly, quarterly, semi-annual or annual basis. You instruct us to send you a check or to have the payments direct deposited into your bank account. If state law allows, we distribute annuities with a contract value of $5,000 or less in a lump sum. Also, if the selected income option results in annuity payments of less than $50 per payment, we may decrease the frequency of the payments, state law allowing. ALLOCATION OF ANNUITY PAYMENTS You can choose income payments that are fixed, variable or both. If payments are fixed, Anchor National guarantees the amounts of each payment. If the payments are variable, the amounts are not guaranteed. They will go up and/or down based upon the performance of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) or STRATEGY(IES) in which you invest. FIXED OR VARIABLE INCOME PAYMENTS You can choose income payments that are fixed, variable or both. If at the date when income payments begin you are invested in the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) only, your income payments will be variable. If your money is only in fixed accounts at that time, your income payments will be fixed in amount. If you are invested in both fixed and variable options at the time you begin the Income Phase, a portion of your income payments will be fixed and a portion will be variable. INCOME PAYMENTS Your income payments will vary if you are invested in the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) after the Annuity date depending on four things: - for life options, your age when payments begin, and; - the value of your contract in the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) on the Annuity Date, and; - the 3.5% assumed investment rate for variable income payments used in the annuity table for the contract, and; - the performance of the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) in which you are invested during the time you receive income payments. If you are invested in both the fixed account options and the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) after the Annuity Date, the allocation of funds between the fixed accounts and SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and/or STRATEGY(IES) also impacts the amount of your annuity payments. TRANSFERS DURING THE INCOME PHASE During the Income Phase, one (1) transfer per month is permitted between the SELECT PORTFOLIO(S), FOCUSED PORTFOLIO(S) and STRATEGY(IES). No other transfers are allowed during the income phase. DEFERMENT OF PAYMENTS We may defer making fixed payments for up to six months, or less if required by law. Interest is credited to you during the deferral period. Please read the Statement of Additional Information for a more detailed discussion of the income options. 34 THE INCOME PROTECTOR You may elect to enroll in the Income Protector Program. The Income Protector Program provides a future "safety net" which offers you the ability to receive a guaranteed fixed minimum retirement income when you choose to begin receiving income payments. With the Income Protector you can know the level of minimum income that will be available to you upon annuitization, regardless of fluctuating market conditions. In order to utilize the program, you must follow the provisions discussed below. You are not required to use the Income Protector to receive income payments. The general provisions of your contract provide other income options. However, we will not refund fees paid for the Income Protector if you begin taking income payments under the general provisions of your contract. YOU MAY NEVER NEED TO RELY UPON INCOME PROTECTOR IF YOUR CONTRACT PERFORMS WITHIN A HISTORICALLY ANTICIPATED RANGE. HOWEVER, PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS. Certain federal tax code restrictions on the income options available to qualified retirement investors may have an impact on your ability to benefit from this feature. Qualified investors should read NOTE TO QUALIFIED CONTRACT HOLDERS, below. HOW DO WE DETERMINE THE AMOUNT OF YOUR MINIMUM GUARANTEED INCOME? We base the amount of minimum retirement income available to you if you take income payments using the Income Protector upon a calculation we call the Income Benefit Base. At the time your enrollment in the Income Protector program becomes effective, your Initial Income Benefit Base is equal to your contract value. Your participation becomes effective on either the date of issue of the contract (if the feature is elected at the time of application) or on the contract anniversary following your enrollment in the program. The Income Benefit Base is only a calculation. It does not represent a contract value, nor does it guarantee performance of the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS or STRATEGIES in which you invest. Your Income Benefit Base increases if you make subsequent Purchase Payments and decreases if you withdraw money from your contract. The exact Income Benefit Base calculation is equal to (a) plus (b) minus (c) where: (a) is equal to, for the first year of calculation, your contract value on the date your participation became effective, and for each subsequent year of calculation, the Income Benefit Base of your prior contract anniversary, and; (b) is equal to the sum of all subsequent Purchase Payments made into the contract since the prior contract anniversary, and; (c) is equal to all withdrawals and applicable fees, charges and any negative MVA (but excluding administration fees, mortality and expense charges and the fee for enrollment into the program) since the prior contract anniversary, including premium taxes, in an amount proportionate to the amount by which such withdrawals decreased your contract value. ENROLLING IN THE PROGRAM If you decide that you want the protection offered by the Income Protector program, you must elect the option of your choice by completing the Income Protector Election Form. You can not terminate your enrollment once elected. 35 ELECTING TO RECEIVE INCOME In order to exercise the Income Protector feature, you may not begin the income phase for at least nine years following the date your enrollment in the program became effective. Further, you may begin taking income payments using the Income Protector feature only within 30 days after the ninth or later contract anniversary following the effective date of your enrollment in the Income Protector program. The contract anniversary prior to your election to begin receiving income payments is your Income Benefit Date. We calculate your Income Benefit Base as of that date to use in determining your guaranteed minimum fixed retirement income. To determine the minimum guaranteed retirement income available to you, we apply your final Income Benefit Base to the annuity rates stated in your Income Protector endorsement for the income option you select. You then choose if you would like to receive the income annually, semi-annually, quarterly or monthly for the time guaranteed under your selected income option. Your final Income Benefit Base is equal to (a) minus (b) where: (a) is your Income Benefit Base as of your Income Benefit Date, and; (b) is any partial withdrawals of contract value and any charges applicable to those withdrawals (including any negative MVA) and any withdrawal charges otherwise applicable, calculated as if you fully surrender your contract as of the Income Benefit Date, and any applicable premium taxes. The income options available when using the Income Protector feature to receive your retirement income are: - Life Annuity with 10 years guaranteed, or - Joint and 100% Survivor Life Annuity with 20 years guaranteed At the time you elect to begin receiving income payments, we will calculate your income payments using both your income benefit base and your contract value. We will use the same income option for each calculation; however, the annuity factors used to calculate your income under the Income Protector feature will be different. You will receive whichever provides a greater stream of income. If you elect to receive income payments using the Income Protector feature your income payments will be fixed in amount. NOTE TO QUALIFIED CONTRACT HOLDERS Qualified contracts generally require that you select an income option that does not exceed your life expectancy. That restriction, if it applies to you, may limit the benefit of the Income Protector program. To utilize the Income Protector feature, you must take income payments under one of the two income options described above. If those income options exceed your life expectancy, you may be prohibited from receiving your guaranteed fixed income under the program. If you own a Qualified contract to which this restriction applies and you elect the Income Protector program, you may pay for this minimum guarantee and not be able to realize the benefit. Generally, for qualified contracts: - for the Life Annuity with 10 years guaranteed, you must annuitize before age 79, and; - for the Joint and 100% Survivor Annuity with 20 years guaranteed, both annuitants must be 70 or younger or one of the annuitants must be 65 or younger upon annuitization. Other age combinations may be available. You may wish to consult your tax advisor for information concerning your particular circumstances. FEES ASSOCIATED WITH THE INCOME PROTECTOR PROGRAM If you elect to participate in the Income Protector program we deduct a fee equal to 0.10% of your Income Benefit Base from your contract value on each contract anniversary beginning with the contract anniversary following the 36 anniversary on which your enrollment in the program becomes effective. We will deduct this charge from your contract value on every contract anniversary up to and including your Income Benefit Date. Additionally, if you fully surrender your contract prior to your contract anniversary, we will deduct the fee at the time of surrender based on your Income Benefit Base as of the surrender date. Once elected, the Income Protector Program and its corresponding charges may not be terminated until full surrender or annuitization of the contract occurs. HYPOTHETICAL EXAMPLE OF THE OPERATION OF THE INCOME PROTECTOR PROGRAM: This table assumes a $100,000 initial investment in a non-qualified contract with no further premiums, no withdrawals, and no premium taxes, no election of Select Rewards or the enhanced death benefit and the election of the Income Protector program at contract issue.
ANNUAL INCOME IF YOU ANNUITIZE ON THE FOLLOWING CONTRACT ANNIVERSARIES: IF AT ISSUE YOU ARE... 1-8 9 10 15 20 - ---------------------------------------------------------------------------------------------------- Male (M), Age 60* N/A 6,480 6,672 7,716 8,832 - ---------------------------------------------------------------------------------------------------- Female (F), Age 60* N/A 5,700 5,880 6,900 8,112 - ---------------------------------------------------------------------------------------------------- M and F, Age 60** N/A 4,920 5,028 5,544 5,928 - ----------------------------------------------------------------------------------------------------
* Life Annuity with 10 Year Period Certain ** Joint and 100% Survivor Annuity with 20 Year Period Certain The Income Protector program is not available in California and may not be available in other states. Check with your financial adviser for availability in your state. We reserve the right to modify, suspend or terminate the program at any time. TAXES - -------------------------------------------------------------------------------- NOTE: WE PREPARED THE FOLLOWING INFORMATION ON TAXES AS A GENERAL DISCUSSION OF THE SUBJECT. IT IS NOT TAX ADVICE. WE CAUTION YOU TO SEEK COMPETENT TAX ADVICE ABOUT YOUR OWN CIRCUMSTANCES. WE DO NOT GUARANTEE THE TAX STATUS OF YOUR ANNUITY. TAX LAWS CONSTANTLY CHANGE, THEREFORE WE CANNOT GUARANTEE THAT THE INFORMATION CONTAINED HEREIN IS COMPLETE AND/OR ACCURATE. ANNUITY CONTRACTS IN GENERAL The Internal Revenue Code ("IRC") provides for special rules regarding the tax treatment of annuity contracts. Generally, taxes on the earnings in your annuity contract are deferred until you take the money out. Qualified retirement investments automatically provide tax deferral regardless of whether the underlying contract is an annuity. Different rules apply depending on how you take the money out and whether your contract is Qualified or Non-qualified. If you do not purchase your contract under a pension plan, a specially sponsored employer program or an individual retirement account, your contract is referred to as a Non-qualified contract. A Non-qualified contract receives different tax treatment than a Qualified contract. In general, your cost basis in a Non-qualified contract is equal to the Purchase Payments you put into the contract. You have already been taxed on the cost basis in your contract. If you purchase your contract under a pension plan, a specially sponsored employer program or as an individual retirement account, your contract is referred to as a Qualified contract. Examples of qualified plans are: Individual Retirement Accounts ("IRAs"), Roth IRAs, Tax-Sheltered Annuities (referred to as 403(b) contracts), H.R. 10 37 Plans (referred to as Keogh Plans) and pension and profit sharing plans, including 401(k) plans. Typically you have not paid any tax on the Purchase Payments used to buy your contract and therefore, you have no cost basis in your contract. TAX TREATMENT OF DISTRIBUTIONS--NON-QUALIFIED CONTRACTS If you make a withdrawal from a Non-qualified contract, the federal tax code treats such a withdrawal as first coming from the earnings and then as coming from your Purchase Payments. For annuity payments, any portion of each payment that is considered a return of your Purchase Payment will not be taxed. Withdrawn earnings are treated as income to you and are taxable. The federal tax code provides for a 10% penalty tax on any earnings that are withdrawn other than in conjunction with the following circumstances: (1) after reaching age 59 1/2; (2) when paid to your Beneficiary after you die; (3) after you become disabled (as defined in the federal tax code); (4) in a series of substantially equal installments made for your life or for the joint lives of you and you Beneficiary; (5) under an immediate annuity; or (6) which come from Purchase Payments made prior to August 14, 1982. TAX TREATMENT OF DISTRIBUTIONS--QUALIFIED CONTRACTS Generally, you have not paid any taxes on the Purchase Payments used to buy a Qualified contract. Any amount of money you take out as a withdrawal or as income payments is taxable income. The federal tax code further provides for a 10% penalty tax on any withdrawal or income payment paid to you other than in conjunction with the following circumstances: (1) after reaching age 59 1/2; (2) when paid to your Beneficiary after you die; (3) after you become disabled (as defined in the federal tax code); (4) in a series of substantially equal installments made for your life or for the joint lives of you and your Beneficiary; (5) to the extent such withdrawals do not exceed limitations set by the federal tax code for amounts paid during the taxable year for medical care; (6) to fund higher education expenses (as defined in federal tax code); (7) to fund certain first-time home purchase expenses; and, except in the case of an IRA; (8) when you separate from service after attaining age 55; and (9) when paid to an alternate payee pursuant to a qualified domestic relations order. The federal tax code limits the withdrawal of Purchase Payments from certain Tax-Sheltered Annuities. Withdrawals can only be made when an owner: (1) reaches age 59 1/2; (2) leaves his or her job; (3) dies; (4) becomes disabled (as defined in the federal tax code); or (5) in the case of hardship. In the case of hardship, the owner can only withdraw Purchase Payments. MINIMUM DISTRIBUTIONS If you have a Qualified contract, distributions must begin by April 1 of the calendar year following the later of (1) the calendar year in which you attain age 70 1/2 or (2) the calendar year in which you retire. Failure to satisfy the minimum distribution requirements may result in a tax penalty. You should contact your tax advisor for more information. We currently waive surrender charges and MVA on withdrawals taken to meet minimum distribution requirements. Current operational practice is to provide a free withdrawal of the greater of the contract's maximum penalty free amount or the required minimum distribution amount for a particular contract (but not both). DIVERSIFICATION The federal tax code imposes certain diversification requirements on the underlying investments for a variable annuity. We believe that the underlying Portfolios' management monitors the variable Portfolios so as to comply with these requirements. To be treated as a variable annuity for tax purposes, the underlying investments must meet these requirements. 38 The diversification regulations do not provide guidance as to the circumstances under which you, because of the degree of control you exercise over the underlying investments, and not Anchor National, would be considered the owner of the shares of the Portfolios. It is unknown to what extent owners are permitted to select investments, to make transfers among Portfolios or the number and type of Portfolios owners may select from. If any guidance is provided which is considered a new position, then the guidance would generally be applied prospectively. However, if such guidance is considered not to be a new position, it may be applied retroactively. This would mean you, as the owner of the contract, could be treated as the owner of the underlying variable investment Portfolios. Due to the uncertainty in this area, we reserve the right to modify the contract in an attempt to maintain favorable tax treatment. PERFORMANCE - -------------------------------------------------------------------------------- From time to time we will advertise the performance of the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and/or STRATEGIES. Any such performance results are based on historical earnings and are not intended to indicate future performance. We advertise the Cash Management Portfolio's yield and effective yield. In addition, the other SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGIES advertise total return, gross yield and yield-to-maturity. These figures represent past performance of the SELECT PORTFOLIOS, FOCUSED PORTFOLIOS and STRATEGIES. These performance numbers do not indicate future results. We may show performance of each SELECT PORTFOLIO, FOCUSED PORTFOLIO and/or STRATEGY in comparison to various appropriate indexes and the performance of other similar variable annuity products with similar objectives as reported by such independent reporting services as Morningstar, Inc., Lipper Analytical Services, Inc. and the Variable Annuity Research Data Service ("VARDS"). Please see the Statement of Additional Information for additional information regarding the methods used to calculate performance data. Anchor National may also advertise the rating and other information assigned to it by independent industry ratings organizations. Some of those organizations are A.M. Best Company ("A.M. Best"), Moody's Investor's Service ("Moody's"), Standard & Poor's Insurance Rating Services ("S&P"), and Duff & Phelps. A.M. Best's and Moody's ratings reflect their current opinion of our financial strength and performance in comparison to others in the life and health insurance industry. S&P's and Duff & Phelps' ratings measure the ability of an insurance company to meet its obligations under insurance policies it issues. These two ratings do not measure the insurer's ability to meet non-policy obligations. Ratings in general do not relate to the performance of the variable Portfolios. OTHER INFORMATION - -------------------------------------------------------------------------------- ANCHOR NATIONAL Anchor National is a stock life insurance company originally organized under the laws of the state of California in April, 1965. On January 1, 1996, Anchor National redomesticated under the laws of the state of Arizona. Anchor National and its affiliates, SunAmerica Life Insurance Company, First SunAmerica Life Insurance Company, SunAmerica Asset Management, SunAmerica Trust Company, and the SunAmerica Financial Network, Inc. (comprising six wholly owned broker-dealers), specialize in retirement savings and investment products and services. Business focuses include, fixed and variable annuities, mutual funds, broker-dealer services and trust administration services. 39 THE SEPARATE ACCOUNT Anchor National originally established a separate account, Variable Annuity Account Five (the "Separate Account"), under Arizona law on July 8, 1996. The Separate Account is registered with the SEC as a unit investment trust under the Investment Company Act of 1940, as amended. Anchor National owns the assets in the Separate Account. However, the assets in the Separate Account are not chargeable with liabilities arising out of any other business conducted by Anchor National. Income gains and losses (realized and unrealized) resulting from assets in the Separate Account are credited to or charged against the Separate Account without regard to other income, gains or losses of Anchor National. CUSTODIAN State Street Bank and Trust Company, 255 Franklin Street, Boston, Massachusetts 02110, serves as the custodian of the assets of the Separate Account. Anchor National pays State Street Bank for services provided, based on a schedule of fees. THE GENERAL ACCOUNT Money allocated to the fixed account options goes into Anchor National's general account. The general account consists of all of Anchor National's assets other than assets attributable to a separate account. All of the assets in the general account are chargeable with the claims of any Anchor National contract holders as well as all of its creditors. The general account funds are invested as permitted under state insurance laws. DISTRIBUTION OF THE CONTRACT Registered representatives of broker-dealers sell the contract. We pay commissions to these representatives for the sale of the contracts. We do not expect the total commissions to exceed 7.5% of your Purchase Payments. Contracts sold with the Select Rewards Program may result in our paying a lower commission. We may also pay a bonus to representatives for contracts which stay active for a particular period of time, in addition to standard commissions. We do not deduct commissions paid to registered representatives directly from your Purchase Payments. From time to time, we may pay or allow additional promotional incentives in the form of cash or other compensation. We reserve the right to offer these additional incentives only to certain broker-dealers that sell or are expected to sell, certain minimum amounts of the contract, or other contracts offered by us. Promotional incentives may change at any time. SunAmerica Capital Services, Inc., 733 Third Avenue, 4th Floor, New York, New York 10017 distributes the contracts. SunAmerica Capital Services is an affiliate of Anchor National, and is a registered as a broker-dealer under the Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. No underwriting fees are paid in connection with the distribution of the contracts. ADMINISTRATION We are responsible for the administrative servicing of your contract. During the accumulation phase, you will receive confirmation of transactions within your contract. Transactions made pursuant to contractual or systematic agreements, such as deduction of the annual maintenance fee and dollar cost averaging, may be confirmed quarterly. Purchase payments received through the automatic payment plan or a salary reduction arrangement, may also be confirmed quarterly. For all other transactions, we send confirmations immediately. 40 During the Accumulation and Income Phases, you will receive a statement of your transactions over the past quarter and a summary of your account values. Please contact our Annuity Service Center at 1-800-445-SUN2, if you have any comment, question or service request. We send out transaction confirmations and quarterly statements. It is your responsibility to review these documents carefully and notify us of any inaccuracies immediately. We investigate all inquiries. To the extent that we believe we made an error, we retroactively adjust your contract, provided you notify us within 30 days of receiving the transaction confirmation or quarterly statement. Any other adjustments we deem warranted are made as of the time we receive notice of the error. LEGAL PROCEEDINGS There are no pending legal proceedings affecting the Separate Account. Anchor National and its subsidiaries engage in various kinds of routine litigation. In management's opinion, these matters are not of material importance to their respective total assets nor are they material with respect to the Separate Account. INDEPENDENT ACCOUNTANTS [TO BE UPDATED BY AMENDMENT] - -------------------------------------------------------------------------------- The consolidated financial statements of Anchor National Life Insurance Company as of December 31, 1999, December 31, 1998, and September 30, 1998 and for the year ended December 31, 1999, for the three months ended December 31, 1998, and for each of the two fiscal years in the period ended September 30, 1998, are incorporated by reference in this prospectus and have been so included in reliance on the reports of PricewaterhouseCoopers LLP, independent accountants, given on the authority of said firm as experts in auditing and accounting. As of the date of this Prospectus, sale of these contracts had not yet begun. Therefore, financial statements for Variable Annuity Account Five (portion related to the Seasons Select II Variable Annuity) are not contained herein. 41 TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION Separate Account............................................ 3 General Account............................................. 4 Performance Data............................................ 4 Annuity Payments............................................ 8 Annuity Unit Values......................................... 8 Taxes....................................................... 11 Distribution of Contracts................................... 16 Financial Statements........................................ 16
42 APPENDIX A - CONDENSED FINANCIAL INFORMATION [TO BE UPDATED BY AMENDMENT] - --------------------------------------------------------------------------------
FISCAL 3/31/00 YEAR TO STRATEGIES INCEPTION TO 3/31/99 3/31/00 4/30/00 - ------------------------------------------------- ---------------------- ----------- ----------- - --------------------------------------------------------------------------------------------------------- Growth (Inception Date: (a) 3/4/99 (b) 4/6/99) Beginning AUV.................................. (a) 15.05 15.89 21.30 (b) 0 16.27 21.27 End AUV........................................ (a) 15.89 21.30 20.24 (b) 0 21.27 20.22 Ending Number of AUs........................... (a) 31,169 1,653,495 1,871,300 (b) 0 126,216 132,445 - --------------------------------------------------------------------------------------------------------- Moderate Growth (Inception Date: (a) 3/3/99 (b) 4/26/99) Beginning AUV.................................. (a) 14.25 15.09 19.48 (b) 0 15.79 19.46 End AUV........................................ (a) 15.09 19.48 18.62 (b) 0 19.46 18.59 Ending Number of AUs........................... (a) 93,136 1,559,019 1,760,865 (b) 0 53,392 69,503 - --------------------------------------------------------------------------------------------------------- Balanced Growth (Inception Date: (a) 3/5/99 (b) 4/5/99) Beginning AUV.................................. (a) 13.80 14.05 16.68 (b) 0 14.26 16.66 End AUV........................................ (a) 14.05 16.68 16.11 (b) 0 16.66 16.09 Ending Number of AUs........................... (a) 85,553 991,695 1,061,795 (b) 0 113,160 109,857 - --------------------------------------------------------------------------------------------------------- Conservative Growth (Inception Date: (a) 3/5/99 (b) 3/19/99) Beginning AUV.................................. (a) 13.03 13.21 14.89 (b) 13.25 13.21 14.89 End AUV........................................ (a) 13.21 14.89 14.50 (b) 13.21 14.87 14.48 Ending Number of AUs........................... (a) 33,892 623,175 629,067 (b) 5,689 77,606 81,771 - ---------------------------------------------------------------------------------------------------------
AUV-Accumulation Unit Value AU-Accumulation Units (a) Reflects age 80 or younger (b) Reflects age 81 or older A-1 APPENDIX B - SELECT REWARDS PROGRAM EXAMPLES - -------------------------------------------------------------------------------- I. DEFERRED PAYMENT ENHANCEMENT If you elect to participate in the Select Rewards Program at contract issue, we contribute at least 2% of each Purchase Payment to your contract for each Purchase Payment we receive as an Upfront Payment Enhancement. Any applicable Deferred Payment Enhancement is allocated to your contract on the corresponding Deferred Payment Enhancement Date and, if declared by the Company, is a percentage of your remaining Purchase Payment on the Deferred Payment Enhancement Date. Deferred Purchase Payment Enhancements are reduced proportionately by partial withdrawals of that Purchase Payment prior to the Deferred Payment Enhancement Date. The examples that follow assume an initial Purchase Payment of $125,000 and that the Deferred Payment Enhancement is 1%. For purposes of the example, the Deferred Payment Enhancement Date is the 9th anniversary of the Purchase Payment. EXAMPLE 1 - NO WITHDRAWALS ARE MADE The Upfront Payment Enhancement allocated to your contract is $2,500 (2% of $125,000). On your 9th contract anniversary, the Deferred Payment Enhancement Date, your Deferred Payment Enhancement of $1,250 (1% of your remaining Purchase Payment or $125,000) will be allocated to your contract. EXAMPLE 2 - WITHDRAWAL MADE PRIOR TO DEFERRED PAYMENT ENHANCEMENT DATE As in Example 1, your Upfront Payment Enhancement is $2,500. This example also assumes the following: (1) Your contract value on your 5th contract anniversary is $190,000. (2) You request a withdrawal of $75,000 on your 5th contract anniversary. (3) No subsequent Purchase Payments have been made. (4) No prior withdrawals have been taken. (5) Funds are not allocated to any of the MVA Fixed Accounts. On your 5th contract anniversary, your penalty-free earnings in the contract are $65,000 ($190,000 contract value less your $125,000 investment in the contract). Therefore, you are withdrawing $10,000 of your initial Purchase Payment. Your contract value will also be reduced by a $500 withdrawal charge on the $10,000 Purchase Payment (5% of $10,000). Your gross withdrawal is $75,500 of which $10,500 constitutes part of your Purchase Payment. The withdrawal of $10,500 of your $125,000 Purchase Payment is a withdrawal of 8.4% of your Purchase Payment. Therefore, only 91.6% or $114,500 of your initial Purchase Payment remains in your contract. On your 9th contract anniversary, the Deferred Payment Enhancement Date, assuming no other transactions occur affecting the Purchase Payment, we allocate your Deferred Payment Enhancement of $1,145 (1% of your remaining Purchase Payment, $114,500) to your contract. B-1 II. 90 DAY WINDOW Contracts issued with the Select Rewards feature are eligible for a "Look-Back Adjustment." As of the 90th day after your contract was issued, we will total your Purchase Payments remaining in your contract at that time, without considering any investment gain or loss in contract value on those Purchase Payments. If your total Purchase Payments bring you to an Enhancement Level which, as of the date we issued your contract, would have provided for a higher Upfront and/or Deferred Payment Enhancement Rate on each Purchase Payment, you will get the benefit of the Enhancement Rate(s) that were applicable to that higher Enhancement Level at the time your contract was issued. This example assumes the following: (1) Current Enhancement Levels, Rates and Dates (beginning , 2000) throughout the first 90 days. (2) No withdrawal in the first 90 days. (3) Initial Purchase Payment of $35,000 on , 2000. (4) Subsequent Purchase Payment of $40,000 on , 2000. (5) Subsequent Purchase Payment of $25,000 on , 2000. (6) Subsequent Purchase Payment of $7,500 on , 2000.
DEFERRED PURCHASE UPFRONT DEFERRED PAYMENT PAYMENT PAYMENT PAYMENT ENHANCEMENT DATE AMOUNT ENHANCEMENT ENHANCEMENT DATE - ----------------------------------- -------- ----------- ----------- ------------------ - ---------------------------------------------------------------------------------------------- , 2000 $ 35,000 2% 0% N/A , 2000 $ 40,000 4% 0% N/A , 2000 $ 25,000 4% 1% , 2009 , 2000 $ 7,500 4% 1% , 2009 - ----------------------------------------------------------------------------------------------
ENHANCEMENT ADJUSTMENTS ON THE 90TH DAY FOLLOWING CONTRACT ISSUE The sum of all Purchase Payments made in the first 90 days of the contract equals $107,500. According to the Enhancement Levels in effect at the time this contract was issued, a $107,500 Purchase Payment would have received a 4% Upfront Payment Enhancement and a 1% Deferred Payment Enhancement. Under the 90 Day Window provision all Purchase Payments made within those first 90 days would receive the benefit of the parameters in place at the time the contract was issued, as if all of the Purchase Payments were received on the date of issue. Thus, the first two Purchase Payments would be adjusted as follows:
DEFERRED PURCHASE UPFRONT DEFERRED PAYMENT PAYMENT PAYMENT PAYMENT ENHANCEMENT DATE AMOUNT ENHANCEMENT ENHANCEMENT DATE - ----------------------------------- -------- ----------- ----------- ------------------ - ---------------------------------------------------------------------------------------------- , 2000 $ 35,000 4% 1% , 2009 , 2000 $ 40,000 4% 1% , 2009 , 2000 $ 25,000 4% 1% , 2009 , 2000 $ 7,500 4% 1% , 2009 - ----------------------------------------------------------------------------------------------
B-2 APPENDIX C - MARKET VALUE ADJUSTMENT - -------------------------------------------------------------------------------- The market value adjustment reflects the impact that changing interest rates have on the value of money invested at a fixed interest rate. The longer the period of time remaining in the term you initially agreed to leave your money in the fixed investment option, the greater the impact of changing interest rates. The impact of the market value adjustment can be either positive or negative, and is computed by multiplying the amount withdrawn, transferred or annuitized by the following factor: [(1+I/(1+J+L)](to the power of N/12) - 1 THE MARKET VALUE ADJUSTMENT FORMULA MAY DIFFER IN CERTAIN STATES where: I is the interest rate you are earning on the money invested in the fixed investment option; J is the interest rate then currently available for the period of time equal to the number of years remaining in the term you initially agreed to leave your money in the fixed investment option; and L is equal to 0.005, except in Pennsylvania where it is equal to zero and Florida where it is equal to .0025. N is the number of full months remaining in the term you initially agreed to leave your money in the fixed investment option. EXAMPLES OF THE MARKET VALUE ADJUSTMENT The examples below assume the following: (1) You made an initial Purchase Payment of $10,000 and allocated it to the 10-year fixed investment option at a rate of 5%; (2) You make a partial withdrawal of $4,000 when 1 year (12 months) remain in the 10-year term you initially agreed to leave your money in the fixed investment option (N=12); and (3) You have not made any other transfers, additional Purchase Payments, or withdrawals. No withdrawal charges are reflected because your Purchase Payment has been in the contract for nine full years. If a withdrawal charge applies, it is deducted before the market value adjustment. The market value adjustment is assessed on the amount withdrawn less any withdrawal charges. NEGATIVE ADJUSTMENT Assume that on the date of withdrawal, the interest rate in effect for new Purchase Payments in the 1-year fixed investment option is 6%. The market value adjustment factor is = [(1+I)/(1+J+0.005)](to the power of N/12) - 1 = [(1.05)/(1.06+0.005)](to the power of 12/12) - 1 = (0.985915)(to the power of 1) - 1 = 0.985915 - 1 = -0.014085 The requested withdrawal amount is multiplied by the market value adjustment factor to determine the market value adjustment: $4,000 X (-0.014085) = -$56.34 C-1 $56.34 represents the market value adjustment that will be deducted from the money remaining in the 10-year fixed investment option. POSITIVE ADJUSTMENT Assume that on the date of withdrawal, the interest rate in effect for a new Purchase Payments in the 1-year fixed investment option is 4%. The market value adjustment factor is = [(1+I/(1+J+0.005)](to the power of N/12) - 1 = [(1.05)/(1.04+0.005)](to the power of 12/12) - 1 = (1.004785)(to the power of 1) - 1 = 1.004785 - 1 = +0.004785 The requested withdrawal amount is multiplied by the market value adjustment factor to determine the market value adjustment: $4,000 X (+0.004785) = +$19.14 $19.14 represents the market value adjustment that would be added to your withdrawal. C-2 APPENDIX D - PREMIUM TAXES - -------------------------------------------------------------------------------- Premium taxes vary according to the state and are subject to change without notice. In many states, there is no tax at all. Listed below are the current premium tax rates in those states that assess a premium tax. For current information, you should consult your tax adviser.
QUALIFIED NON-QUALIFIED STATE CONTRACT CONTRACT - ----- --------- ------------- California.................................................. 0.50% 2.35% Maine....................................................... 0% 2.00% Nevada...................................................... 0% 3.50% South Dakota................................................ 0% 1.25% West Virginia............................................... 1.00% 1.00% Wyoming..................................................... 0% 1.00%
D-1 Please forward a copy (without charge) of the Seasons Select Variable Annuity Statement of Additional Information to: (Please print or type and fill in all information.) - -------------------------------------------------------------------------------- Name - -------------------------------------------------------------------------------- Address - -------------------------------------------------------------------------------- City/State/Zip - -------------------------------------------------------------------------------- Date: ___________________ Signed: _____________________________________________ Return to: Anchor National Life Insurance Company, Annuity Service Center, P.O. Box 52499, Los Angeles, California 90054-0299 Part II ------- Information Not Required in Prospectus Item 14. Other Expenses of Issuance and Distribution. The following table sets forth the expenses in connection with the issuance and distribution of the securities being registered, other than underwriting discounts and commissions. All of the amounts shown are estimates, except the SEC registration fee. SEC registration fee . . . . . . . . . . . . . . $ 5,560 Printing and engraving . . . . . . . . . . . . . 50,000 Legal fees and expenses . . . . . . . . . . . . 10,000 Rating agency fees . . . . . . . . . . . . . . . 7,500 Miscellaneous . . . . . . . . . . . . . . . . . 10,000 --------- Total . . . . . . . . . . . . . . . . . . . . $ 83,060 --------- ---------
Item 15. Indemnification of Directors and Officers. Section 10-851 of the Arizona Corporations and Associations law permits the indemnification of directors, officers, employees and agents of Arizona corporations. Article Eight of the Company's Restated Articles of Incorporation, as amended and restated (the "Articles") and Article Five of the Company's By-Laws ("By-Laws") authorize the indemnification of directors and officers to the full extent required or permitted by the Laws of the State of Arizona, now or hereafter in force, whether such persons are serving the Company, or, at its request, any other entity, which indemnification shall include the advance of expenses under the procedures and to the full extent permitted by law. In addition, the Company's officers and directors are covered by certain directors' and officers' liability insurance policies maintained by the Company's parent. Reference is made to section 10-851 of the Arizona Corporations and Associations Law, Article Eight of the Articles, and Article Five of the By-Laws, which are incorporated herein by reference. Item 16. Exhibits and Financial Statements Schedules. Seasons Select Exhibit No. Description - ----------- ----------- (1) Form of Underwriting Agreement *** (2) Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession ** (3) (a) Articles of Incorporation *** (b) By-Laws *** (4) (a) Seasons Select II Individual Fixed and Variable Annuity Contract* (b) Individual Retirement Annuity Endorsement* (c) Purchase Payment Accumulation Optional Death Benefit Endorsement* (d) Maximum Anniversary Value Optional Death Benefit Endorsement* (e) Spousal Continuation Death Benefit Endorsement* (f) Optional Income Benefit Endorsement* (g) Death Benefit Endorsement* (h) Seasons Select II Deferred Annuity Application* (5) Opinion of Counsel re: Legality ** (including on Exhibit (23)(b)) (6) Opinion re Discount on Capital Shares ** (7) Opinion re Liquidation Preference ** (8) Opinion re Tax Matters ** (9) Voting Trust Agreement ** (10) Material Contracts ** (11) Statement re Computation of Per Share Earnings ** (12) Statement re Computation of Ratios ** (14) Material Foreign Patents ** (15) Letter re Unaudited Financial Information ** (16) Letter re Change in Certifying Accountant ** (23) (a) Consent of Independent Accountants * (b) Consent of Attorney ** (24) Powers of Attorney * (25) Statement of Eligibility of Trustee ** (26) Invitation for Competitive Bids ** (27) Financial Data Schedule + (28) Information Reports Furnished to State Insurance Regulatory Authority ** (29) Other Exhibits ** * Herewith ** Not Applicable *** Incorporated by Reference to Pre-Effective Amendment No. 1 of this Registration Statement on Form S-1 filed on March 11, 1997. **** Incorporated by Reference to the Initial Registration Statement to Registration Statement No. 333-08877 filed on Form S-1 on November 20, 1998. + Incorporated by Reference to Pre-Effective Amendment No. 2 to Registration Statement No. 333-08877 on Form S-1, filed on February 1, 1999. ++ Incorporated by Reference to the Post-Effective Amendment No. 8 of this Registration Statement filed on Form S-3 on July 19, 2000. Item 17. Undertakings. The undersigned registrant hereby undertakes: (1) To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement to include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement. (2) That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. (3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering. (4) That, for purposes of determining any liability under the Securities Act of 1933, each filing of the registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 and, where applicable, each filing of an employee benefit plan's annual report pursuant to Section 15(d) of the Securities Exchange Act of 1934) that is incorporated by reference in the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. SIGNATURES Pursuant to the requirement of the Securities Act of 1933, the Registrant Certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form S-3 and has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Los Angeles, State of California on this 25th day of September, 2000. By: ANCHOR NATIONAL LIFE INSURANCE COMPANY By: /s/ JAY S. WINTROB ----------------------------------- Jay S. Wintrob President Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities and on the dates indicated.
SIGNATURE TITLE DATE --------- ----- ---- ELI BROAD* Chief Executive Officer, & September 25, 2000 - ------------------- Chairman of Board Eli Broad (Principal Executive Officer) N. SCOTT GILLIS* Director & Senior Vice President September 25, 2000 - ------------------- N. Scott Gillis JAMES R. BELARDI* Director & Senior Vice President September 25, 2000 - ------------------- James R. Belardi JANA W. GREER* Director & Senior Vice President September 25, 2000 - ------------------- Jana W. Greer JAY S. WINTROB* Director & President September 25, 2000 - ------------------- Jay S. Wintrob MAURICE HEBERT* - ------------------- Controller & Vice President September 25, 2000 Maurice Hebert (Principal Accounting Officer) MARC H. GAMSIN* Director & Senior Vice President September 25, 2000 - ------------------- Marc H. Gamsin *By: /s/ CHRISTINE A. NIXON Attorney-in-Fact ---------------------- Christine A. Nixon
Dated: September 25, 2000 EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION - ----------- ---------------------------------------------------------------- (4)(a) SEASONS SELECT II INDIVIDUAL FIXED AND VARIABLE ANNUITY CONTRACT (4)(b) INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT (4)(c) PURCHASE PAYMENT ACCUMULATION OPTIONAL DEATH BENEFIT ENDORSEMENT (4)(d) MAXIMUM ANNIVERSARY VALUE OPTIONAL DEATH BENEFIT ENDORSEMENT (4)(e) SPOUSAL CONTINUATION DEATH BENEFIT ENDORSEMENT (4)(f) OPTIONAL INCOME BENEFIT ENDORSEMENT (4)(g) DEATH BENEFIT ENDORSEMENT (4)(h) SEASONS SELECT II INDIVIDUAL DEFERRED ANNUITY APPLICATION (23)(a) Consent of Independent Accountants
EX-99.4(A) 2 a2026237zex-99_4a.txt EXHIBIT 99.4(A) ANCHOR NATIONAL LIFE INSURANCE COMPANY A STOCK COMPANY LOS ANGELES, CALIFORNIA CONTRACT NUMBER P9999999999 OWNER JOHN DOE STATUTORY HOME OFFICE EXECUTIVE OFFICE ANNUITY SERVICE CENTER 2999 NORTH 44TH ST., STE 250 1 SUNAMERICA CENTER P. O. BOX 54299 PHOENIX, AZ 85018 LOS ANGELES, CA 90067-6022 LOS ANGELES, CA 90054-0299
ANCHOR NATIONAL LIFE INSURANCE COMPANY ("We", "Us", the "Company", or "Anchor National") agrees to provide benefits to the Owner in accordance with the provisions set forth in this Contract and in consideration of the Application and Purchase Payments We received. THE VALUE OF AMOUNTS ALLOCATED TO THE SEPARATE ACCOUNT DURING THE ACCUMULATION AND ANNUITY PERIODS IS NOT GUARANTEED. THE VALUE WILL INCREASE OR DECREASE BASED UPON THE INVESTMENT EXPERIENCE OF THE INVESTMENTS UNDERLYING THE SUBACCOUNTS YOU CHOOSE. THE CASH SURRENDER BENEFIT OF AMOUNTS ALLOCATED TO ANY FIXED-MVA ACCOUNT OPTION INCREASES OR DECREASES BASED ON THE APPLICATION OF THE MARKET VALUE ADJUSTMENT. THE UNADJUSTED CASH SURRENDER BENEFIT IS AVAILABLE FOR 30 DAYS AFTER THE END OF THE GUARANTEE PERIOD. THERE IS NO MARKET VALUE ADJUSTMENT FOR ANY CASH SURRENDER BENEFIT OF AMOUNTS ALLOCATED TO NON-MVA FIXED ACCOUNT OPTIONS. RIGHT TO EXAMINE - YOU MAY RETURN THIS CONTRACT TO OUR ANNUITY SERVICE CENTER OR TO THE AGENT THROUGH WHOM THE CONTRACT WAS PURCHASED WITHIN 10 DAYS AFTER YOU RECEIVE IT, IF YOU ARE NOT SATISFIED WITH IT. THE COMPANY WILL REFUND THE CONTRACT VALUE LESS ANY PAYMENT ENHANCEMENT(S) ON THE BUSINESS DAY DURING WHICH THE CONTRACT IS RECEIVED. UPON SUCH REFUND, THE CONTRACT SHALL BE VOID. For Individual Retirement Annuities, a refund of the Purchase Payment(s) may be required. Therefore, We reserve the right to allocate your Purchase Payment(s) and any Payment Enhancement to the Cash Management Subaccount until the end of the Right To Examine period. Thereafter, allocations will be made as shown on the Contract Data Page. THIS IS A LEGAL DOCUMENT. READ IT CAREFULLY. /s/ Christine A. Nixon /s/ Eli Broad - ----------------------- ---------------- Christine A. Nixon Eli Broad Assistant Secretary President INDIVIDUAL FIXED AND VARIABLE ANNUITY CONTRACT Nonparticipating 1 TABLE OF CONTENTS CONTRACT DATA PAGE..................................................................PAGE 3 PURCHASE PAYMENT ALLOCATION.........................................................PAGE 4 DEFINITIONS.........................................................................PAGE 5 PURCHASE PAYMENT PROVISIONS.........................................................PAGE 8 ACCUMULATION PROVISIONS.............................................................PAGE 9 PAYMENT ENHANCEMENT PROVISIONS.....................................................PAGE 11 FEES AND CHARGES...................................................................PAGE 12 TRANSFER PROVISION.................................................................PAGE 12 WITHDRAWAL PROVISION...............................................................PAGE 13 GENERAL PROVISIONS.................................................................PAGE 15 DEATH PROVISIONS...................................................................PAGE 17 ANNUITY PROVISIONS.................................................................PAGE 19 ANNUITY PAYMENT OPTIONS ...........................................................PAGE 21 FIXED ANNUITY PAYMENT OPTIONS TABLE................................................PAGE 22 VARIABLE ANNUITY PAYMENT OPTIONS TABLE.............................................PAGE 25
2 CONTRACT DATA PAGE CONTRACT NUMBER: ANNUITY SERVICE CENTER: P9999999999 P. O. BOX 54299 LOS ANGELES, CA 90054-0299 OWNER: AGE AT ISSUE: JOHN DOE 35 ANNUITANT: INITIAL PURCHASE PAYMENT: JOHN DOE $10,000.00 ANNUITY DATE: CONTRACT DATE: JUNE 7, 2030 JUNE 7, 2000 LATEST ANNUITY DATE: UPFRONT PAYMENT ENHANCEMENT: JUNE 7, 2055 [2.0%] BENEFICIARY: FIXED ACCOUNT - As stated on the Application Form Minimum Guarantee Rate: 3.0% MORTALITY RISK CHARGE: EXPENSE RISK CHARGE: [0.90%] [0.35%] ANNUAL CONTRACT ADMINISTRATION CHARGE: DISTRIBUTION EXPENSE CHARGE: $35.00 [0.15%] SEPARATE ACCOUNT: VARIABLE ANNUITY ACCOUNT FIVE PAYMENT ENHANCEMENT SCHEDULE PAYMENT ENHANCEMENT SCHEDULE FOR INITIAL PURCHASE PAYMENT
PAYMENT ENHANCEMENT DATE UPFRONT PAYMENT ENHANCEMENT AMOUNT UPFRONT PAYMENT ENHANCEMENT: JUNE 7, 2000 $200.00 DEFERRED PAYMENT ENHANCEMENT(S): [JUNE 7, 2008] [$200.00]
Deferred Payment Enhancement amount(s), if any, may be reduced by certain withdrawals of Contract Value. Please see Payment Enhancement Provisions. FOR INQUIRIES CALL 1-800-445-SUN2 3 PURCHASE PAYMENT ALLOCATION SUBACCOUNTS 80.00% Growth Strategy 0.00% Moderate Growth Strategy 0.00% Balanced Growth Strategy 0.00% Conservative Growth Strategy 0.00% Large Cap Growth Portfolio 0.00% Large Cap Composite Portfolio 0.00% Large Cap Value Portfolio 0.00% Mid Cap Growth Portfolio 0.00% Mid Cap Value Portfolio 0.00% Small Cap Portfolio 0.00% International Equity Portfolio 0.00% Diversified Fixed Income Portfolio 0.00% Cash Management Portfolio 0.00% Focus Growth Portfolio FIXED ACCOUNT OPTIONS
GUARANTEE INITIAL PERIOD INTEREST RATE 20.00% 1 Year Fixed Non-MVA 3.00% 0.00% 3 Year Fixed MVA 0.00% 5 Year Fixed MVA 0.00% 7 Year Fixed MVA 0.00% 10 Year Fixed MVA
4 DEFINITIONS Defined in this section are some of the words and phrases used in this Contract. These terms are capitalized when used in the Contract. Other capitalized terms in the Contract refer to the captioned paragraph explaining that particular concept in the Contract. ACCUMULATION UNIT A unit of measurement used to compute the Contract Value in a Subaccount prior to the Annuity Date. AGE Age as of last birthday. ANNUITANT The natural person or persons (collectively, Joint Annuitants) whose life or lives is/are used to determine the annuity benefits under the Contract. If the Contract is in force and the Annuitant(s) is/are alive on the Annuity Date, We will begin payments to the Payee. This Contract cannot have Joint Annuitants if it is issued in connection with a tax-qualified retirement plan. ANNUITY DATE The date on which annuity payments ("income payments") to the Payee are to start. The Owner must specify the Annuity Date, which must be at least two years after the Contract Date. ANNUITY SERVICE CENTER As specified on the Contract Data Page. ANNUITY UNIT A unit of measurement used to compute annuity payments from the Subaccounts. BENEFICIARY The Beneficiary is as named by You unless later changed by You in a written request to Us at Our Annuity Service Center. CONTRACT DATE The date Your Contract is issued, as shown on the Contract Data Page. It is the date from which Contract Years and anniversaries are measured. CONTRACT VALUE The sum of: (1) Your share of the Subaccounts' Accumulation Unit values and (2) the value of amounts allocated to the Fixed Account Options. CONTRACT YEAR A year starting from the Contract Date in one calendar year and ending on the day preceding the anniversary of such date in the succeeding calendar years. CONTRIBUTION YEAR A year starting from the date of the Purchase Payment in one calendar year and ending on the day preceding the anniversary of such date in the succeeding calendar years. 5 CURRENT INTEREST RATE The rates of interest declared by Us applicable to allocations of Subsequent Purchase Payments to the Fixed Account Options. The Current Interest Rate will not be less than the Minimum Guarantee Rate as shown on the Contract Data Page. DEFERRED PAYMENT ENHANCEMENT Any Payment Enhancement allocated to Your Contract Value on any Deferred Payment Enhancement Date. FIXED ACCOUNT OPTIONS The investment options under this Contract that are credited with a fixed rate of interest declared by the Company. All Purchase Payments allocated to the Fixed Account Options become part of the Company's general asset account. The general asset account contains all the assets of the Company except for the Separate Account and other segregated asset accounts. The Fixed Account Options for this Contract are shown on page 4. FIXED ANNUITY A series of periodic annuity payments of predetermined amounts that do not vary with investment experience. Such payments are made from the Company's general asset account. GUARANTEE PERIOD The period for which either the Initial Interest Rate, the Current Interest Rate or the Renewal Interest Rate is credited to the amounts allocated to the Fixed Account Options. INITIAL INTEREST RATE The rate(s) of interest credited to any portion of the Initial Purchase Payment allocated to the Fixed Account Option(s), as described in the Accumulation Provisions section. The Initial Interest Rate(s) for this Contract is/are listed on page 4. The Initial Interest Rate may not be less than the Minimum Guarantee Rate as shown on the Contract Data Page. IRC The Internal Revenue Code of 1986 or as it may be amended or superseded. JOINT OWNER If Joint Owners are named, they must be spouses. Each Joint Owner has an equal ownership interest in the Contract unless We are advised otherwise in writing. NYSE New York Stock Exchange OWNER The person or entity named in the Contract who is entitled to exercise all rights and privileges of ownership under the Contract. Owner means both Joint Owners if applicable. PAYEE The person receiving payment of annuity benefits under this Contract. PAYMENT ENHANCEMENT Payment Enhancements are amounts based on a percentage of Your Purchase Payment(s) allocated to Your Contract Value by Us. Payment Enhancements are not considered Purchase Payments. The Payment Enhancement percentages are indicated on the Contract Data Page 3. 6 PURCHASE PAYMENTS Payments in U.S. currency made by or on behalf of the Owner to the Company for the Contract. Payment Enhancements are not considered Purchase Payments. RENEWAL INTEREST RATE The rate(s) of interest declared by Us applicable to transfers from the Subaccounts into any of the Fixed Account Options and to amounts previously allocated to a Fixed Account Option wherein the Guarantee Period has expired. The Renewal Interest Rate may not be less than the Minimum Guarantee Rate as shown on the Contract Data Page. SEPARATE ACCOUNT The segregated asset account named on the Contract Data Page. The Separate Account consists of several Subaccounts each investing in shares of the Underlying Fund(s). The assets of the Separate Account are not commingled with the general assets and liabilities of the Company. Each Subaccount is not chargeable with liabilities arising out of any other Subaccount. The value of amounts allocated to the Subaccounts of the Separate Account is not guaranteed. SUBACCOUNT One or more divisions of the Separate Account which invests in shares of the corresponding Underlying Fund of the [Anchor Series Trust or the SunAmerica Series Trust]. Each Subaccount has its own investment objective and is not chargeable with liabilities arising out of any other Subaccount. The available Subaccounts are shown on page 4. Additional Subaccounts may become available in the future. SUBSEQUENT PURCHASE PAYMENTS Purchase Payments made subsequent to the Initial Purchase Payment. TOTAL INVESTED AMOUNT The sum of all Purchase Payments less amounts previously withdrawn that incurred a Withdrawal Charge, less Purchase Payments withdrawn that were no longer subject to a Withdrawal Charge. UNDERLYING FUND The variable investment options in which the corresponding Subaccount(s) invest. UPFRONT PAYMENT ENHANCEMENT The Payment Enhancement allocated to Your Contract Value on the date a Purchase Payment is credited to Your Contract. VARIABLE ANNUITY A series of periodic annuity payments, which vary in amount according to the investment experience of one or more Subaccounts, as selected by You. 7 WE, OUR, US, THE COMPANY Anchor National Life Insurance Company. YOU, YOUR The Owner. PURCHASE PAYMENT PROVISIONS PURCHASE PAYMENTS Purchase Payments are flexible. This means that, subject to Company declared minimums and maximums, You may change the amounts, frequency or timing of Purchase Payments. Purchase Payments may be allocated to the Fixed Account Options and one or more Subaccounts in accordance with instructions from You. We reserve the right to specify the minimum Purchase Payment that may be allocated to a Subaccount under the Contract. DEFERMENT OF PAYMENTS We may defer making payments from the Fixed Account Options for up to six (6) months. Interest, subject to state requirements, will be credited during the deferral period. SUSPENSION OF PAYMENTS We may suspend or postpone any payments from the Subaccounts if any of the following occur: (a) the NYSE is closed, (b) trading on the NYSE is restricted, (c) an emergency exists such that it is not reasonably practical to dispose of or determine the value of the assets held in a Subaccount, or (d) the Securities and Exchange Commission, by order, so permits for the protection of Owners. Conditions in (b) and (c) will be decided by or in accordance with rules of the Securities and Exchange Commission. SUBSTITUTION OF INVESTMENT PORTFOLIOS If: (a) the shares of the underlying investment portfolios in which the Subaccounts invest should no longer be available for investment by the Separate Account; or (b) if further investment in the shares of an investment portfolio is no longer appropriate in view of the purpose of the Contract, then We may substitute shares of another underlying investment series, for shares already purchased, or to be purchased in the future by Purchase Payments under the Contract. No substitution of securities may take place without prior approval of the Securities and Exchange Commission and under such requirements as it may impose. 8 ACCUMULATION PROVISIONS SEPARATE ACCOUNT ACCUMULATION VALUE The Separate Account Accumulation Value under the Contract shall be the sum of the values of the Accumulation Units held in the Subaccounts for the Owner. NUMBER OF ACCUMULATION UNITS Your Contract is credited with Accumulation Units of the Separate Account when Purchase Payments are allocated to the Subaccounts. For that portion of each Purchase Payment allocated to a Subaccount, the number of Accumulation Units credited is equal to the sum of each Purchase Payment, any Payment Enhancement and/or transfer amount allocated to that Subaccount, reduced by premium taxes, if any: DIVIDED BY The Accumulation Unit value for that Subaccount for the NYSE business day on which the Purchase Payment, Payment Enhancement or transfer amount is allocated. The number of Accumulation Units will be similarly adjusted for withdrawals, annuitizations, transfers, Contract Administration Charge and Withdrawal Charge. Adjustments will be made as of the end of the NYSE business day in which We receive all requirements for the transaction, as appropriate. ACCUMULATION UNIT VALUE (AUV) The AUV of a Subaccount for any NYSE business day is calculated by subtracting (2) from (1) and dividing the result by (3) where: (1) is the total value at the end of the given NYSE business day of the assets attributable to the Accumulation Units of the Subaccount minus the total liabilities; (2) is the cumulative unpaid charge for assumption of Expense Risk, Distribution Expense and Mortality Risk charges (See FEES AND CHARGES); (3) is the number of Accumulation Units outstanding at the end of the given NYSE business day. FIXED ACCOUNT ACCUMULATION VALUE Under a Contract, the Fixed Account Accumulation Value shall be the sum of all monies allocated or transferred to the Fixed Account Option(s), reduced by any applicable premium taxes, plus all interest credited on the Fixed Account Option(s) during the period that the Contract has been in effect. This amount shall be adjusted for withdrawals, annuitizations, transfers, Contract Administration Charge and Withdrawal Charge. The Fixed Account Accumulation Value shall not be less than the minimum values required by law in the state where this Contract is issued. FIXED ACCOUNT GUARANTEE PERIOD OPTIONS AND INTEREST CREDITING Any amounts allocated to the Fixed Account Options from the Initial Purchase Payment and corresponding Upfront Payment Enhancement will earn interest at the Initial Interest Rate for the Fixed Account Option(s) selected for the duration of the Guarantee Period. 9 Subsequent Purchase Payments and the Upfront Payment Enhancement for Subsequent Purchase Payments, if any, allocated to the Fixed Account Options will earn interest at the Current Interest Rate for the Fixed Account Option(s) selected for the duration of the Guarantee Period. Transfers to the Fixed Account Options from the Subaccounts and amounts renewed into the Fixed Account Options will earn interest at the Renewal Interest Rate for the Fixed Account Option(s) selected for the duration of the Guarantee Period. For thirty (30) days following the date of expiration of a Guarantee Period, You may renew for the same or any other Guarantee Period at the Renewal Interest Rate or You may transfer all or a portion of the amount to the Subaccounts. If the Owner does not specify a Guarantee Period at the time of renewal, We will select the same Guarantee Period as has just expired, crediting the Contract with the Renewal Interest Rate in effect on the date of expiration of the Guarantee Period, so long as such Guarantee Period does not extend beyond the Annuity Date. If a renewal occurs within one year of the latest Annuity Date, We will credit interest up to the Annuity Date at the Renewal Interest Rate for the One Year Fixed Account Option. MARKET VALUE ADJUSTMENT (MVA) Any payments and values based on a multi-year Fixed Account Option may be subject to a MVA, the operation of which may result in upward or downward adjustments in the Contract Value, if withdrawn, transferred or annuitized prior to the end of the respective Guarantee Period. The MVA will be calculated by multiplying the amount withdrawn, transferred or annuitized by the formula described below: N/12 {(1 + I)/(1+J+0.005)} -1 I = The interest rate currently in effect for that Guarantee Period. J = The Initial Interest Rate available for the Guarantee Period equal to the number of years (rounded up to an integer) remaining in the current Guarantee Period at the time of withdrawal, transfer or annuitization. In the determination of J, if the Company currently does not offer the applicable Guarantee Period, then the rate will be determined by linear interpolation of the Initial Interest Rate for the nearest two Guarantee Periods that are available. N = The number of full months remaining in the current Guarantee Period at the time the withdrawal or annuitization request is processed. If a Withdrawal Charge is applied to a withdrawal, then the MVA will be applied to the withdrawal amount net of the Withdrawal Charge. There will be no MVA on withdrawals from the Fixed Account Options in the following situations: (1) to pay a Death Benefit upon death of the Owner; (2) on amounts withdrawn to pay fees or charges; (3) on amounts withdrawn from the Fixed Account Options within thirty (30) days after the end of the Guarantee Period; (4) on annuitizations on the Latest Annuity Date; (5) on amounts withdrawn from the 1-Year Fixed Account Option. 10 PAYMENT ENHANCEMENT PROVISIONS Payment Enhancements are amounts allocated to Your Contract Value by Us. Payment Enhancements are not considered Purchase Payments. Payment Enhancements are subject to Our terms and conditions as discussed below. PAYMENT ENHANCEMENT FOR INITIAL PURCHASE PAYMENT We will allocate the Upfront Payment Enhancement shown on the Contract Data Page to the Fixed Account Options and Subaccounts in the same proportion as Your Initial Purchase Payment. The Upfront Payment Enhancement will be allocated on Your Contract Date. We will allocate any Deferred Payment Enhancement(s) shown on the Contract Data Page to the Cash Management Portfolio on the corresponding Deferred Payment Enhancement Date(s) shown. Any Deferred Payment Enhancement(s) will be reduced proportionately by Partial Withdrawals (including any fees or charges associated with such withdrawals) of the Initial Purchase Payment(s), prior to the Deferred Payment Enhancement Date(s). PAYMENT ENHANCEMENT FOR SUBSEQUENT PURCHASE PAYMENT(S) The Upfront Payment Enhancement for Subsequent Purchase Payments is a percentage of each Subsequent Purchase Payment. We will allocate the Upfront Payment Enhancement for the Subsequent Purchase Payment to the Fixed Account Options and Subaccounts in the same proportion as that Subsequent Purchase Payment. We will allocate any Deferred Payment Enhancement(s) for Subsequent Purchase Payments to the Cash Management Portfolio. Deferred Payment Enhancement(s) corresponding to Subsequent Purchase Payments will be reduced proportionately by Partial Withdrawals (including any fees or charges associated with such withdrawals) of that Subsequent Purchase Payment, prior to the Deferred Payment Enhancement Date(s). The Upfront Payment Enhancement, and if applicable, any Deferred Payment Enhancement(s) and Deferred Payment date(s) for Subsequent Purchase Payments will be the Payment Enhancement percentages and Payment Enhancement dates in effect at the time We receive Your Subsequent Purchase Payment. The amount of any applicable Payment Enhancement(s) will be shown on the confirmation report We send to You after Your Subsequent Purchase Payment is received by Us. DEFERRED PAYMENT ENHANCEMENTS For purposes of determining a Deferred Payment Enhancement, Partial Withdrawals are assumed to be withdrawn from earnings first, then from Purchase Payments on a first-in-first-out (FIFO) basis. No Deferred Payment Enhancement will be allocated if prior to the Deferred Payment Enhancement Date: (a) the Contract Value is fully withdrawn; or (b) a death benefit has been paid; or (c) Annuity payments have begun; or (d) the entire Purchase Payment to which the Deferred Payment Enhancement corresponds has been withdrawn. 11 FEES AND CHARGES We will deduct the following charges from the Contract: CONTRACT ADMINISTRATION CHARGE The charge specified on the Contract Data Page will be deducted on each Contract anniversary that occurs on or prior to the Annuity Date. It will also be deducted when the Contract Value is withdrawn in full if withdrawal is not on the Contract anniversary. We reserve the right to assess a charge on a class basis, which is less than the charge specified on the Contract Data Page. EXPENSE RISK CHARGE On an annual basis this charge, as shown on the Contract Data Page, equals a percentage of the average daily ending value of the assets attributable to the Accumulation Units of the Subaccounts to which the Contract is allocated. We subtract this charge daily. This charge is to compensate Us for assuming the expense risks under the Contract. DISTRIBUTION EXPENSE CHARGE On an annual basis this charge, as shown on the Contract Data Page, equals a percentage of the average daily ending value of the assets attributable to the Accumulation Units of the Subaccounts to which the Contract is allocated. We subtract this charge daily. This charge is to compensate Us for all distribution expenses associated with the Contract. MORTALITY RISK CHARGE On an annual basis this charge, as shown on the Contract Data Page, equals a percentage of the average daily ending value of the assets attributable to the Accumulation Units of the Subaccounts to which the Contract is allocated. We subtract this charge daily. This charge is to compensate Us for assuming the mortality risks under the Contract. TRANSFER PROVISION Prior to the Annuity Date, You may transfer all or part of Your Contract Value to any of the Subaccounts or Fixed Account Options. We reserve the right to charge a fee for transfers if the number of transfers exceeds the limit specified by Us. The minimum amount that can be transferred and the amount that can remain in a Subaccount or Fixed Account Option are subject to Company limits. TRANSFERS OF ACCUMULATION AND ANNUITY UNITS BETWEEN SUBACCOUNTS Prior to the Annuity Date, You may transfer all or a portion of Your Contract Value from one Subaccount to another Subaccount. A transfer will result in the purchase of Accumulation Units in a Subaccount and the redemption of Accumulation Units in the other Subaccount. Transfers will be effected at the end of the NYSE business day in which We receive Your completed request for the transfer. After the Annuity Date, You may transfer all or a portion of Your Contract Value from one Subaccount to another Subaccount. A transfer will result in the purchase of Annuity Units in a Subaccount and the redemption of Annuity Units in the other Subaccount. Transfers will be 12 effected at the end of the NYSE business day in which We receive Your completed request for the transfer. The minimum amount that can be transferred between Subaccounts and the amount that can remain in the Subaccount are subject to Company limits. TRANSFERS OF ACCUMULATION UNITS TO AND FROM THE FIXED ACCOUNT Prior to the Annuity Date, You may transfer all or any part of Your Contract Value from the Subaccount(s) to any Fixed Account Option(s) or from the Fixed Account Option(s) to the Subaccount(s) of the Contract. After the Annuity Date, transfers into or out of the Fixed Account Options are not allowed. WITHDRAWAL PROVISION On or before the Annuity Date and while the Owner is living, You may withdraw all or part of Your Contract Value under this Contract by informing Us at Our Annuity Service Center. For a full withdrawal, this Contract must be returned to Our Annuity Service Center. The minimum amount that can be withdrawn and the amount remaining after withdrawal are subject to Company limits. Without a written notice to the contrary, withdrawals will be deducted from the Contract Value in proportion to their allocation among the Fixed Account Options and the Subaccounts. Withdrawals will be based on values at the end of the NYSE business day in which the request for withdrawal and the Contract (in the case of a full withdrawal), are received at the Annuity Service Center. Unless the SUSPENSION OF PAYMENTS or DEFERMENT OF PAYMENTS sections are in effect, payment of withdrawals will be made within seven calendar days. WITHDRAWAL CHARGE Withdrawals of all or a portion of the Contract Value may be subject to a Withdrawal Charge as shown in the chart below. The Withdrawal Charge applied to any withdrawal will depend on how long the Purchase Payment to which the withdrawal is attributed has been in the Contract. No Withdrawal Charge is made on an amount withdrawn, which is considered to be a withdrawal of penalty-free earnings. For the purpose of determining the Withdrawal Charge, a withdrawal will be attributed to amounts in the following order: (1) penalty-free earnings in the Contract; (2) Purchase Payments which are both no longer subject to the Withdrawal Charge and are not yet withdrawn; (3) any remaining Penalty-Free Withdrawal amount (except in the case of a full surrender); and (4) Purchase Payments subject to a Withdrawal Charge. Purchase Payments, when withdrawn, are assumed to be withdrawn on a first-in-first-out (FIFO) basis. You will not receive the benefit of a Penalty-Free Withdrawal in a full surrender. 13
Number of Years Elapsed Withdrawal Charge as a Between Purchase Payment Contribution Percentage of Withdrawn and Date of Withdrawal Purchase Payment - --------------------------------------------- ------------------------------- 0 9% 1 8% 2 7% 3 6% 4 6% 5 5% 6 4% 7 3% 8 2% 9+ 0%
The Withdrawal Charge will be assessed against the Subaccounts and the Fixed Account Options in the same proportion as the remaining Contract Value is allocated unless You request that the withdrawal come from a particular Fixed Account Option or Subaccount. If the remaining Contract Value is insufficient to cover the Withdrawal Charge, any remaining balance will be deducted from the withdrawal amount requested. PENALTY-FREE WITHDRAWALS As of any day, You may make a withdrawal of up to the Penalty-Free Withdrawal amount for that day without incurring a Withdrawal Charge. Any Penalty-Free Withdrawal made in excess of penalty-free earnings in the Contract is considered to be a withdrawal of future penalty-free earnings and is therefore not a withdrawal of the Total Invested Amount. On any day, penalty-free earnings in the Contract are calculated as the Contract Value at the end of that day less the Total Invested Amount. During the first Contract Year, the maximum Penalty-Free Withdrawal amount as of the date of the withdrawal is the greater of: (a) penalty-free earnings in the Contract as of that date; or (b) through the Systematic Withdrawal Program, 10% of the Total Invested Amount on deposit for at least one year, less any withdrawals already made during the year. After the first Contract Year, the maximum Penalty-Free Withdrawal amount as of the date of the withdrawal is the greater of: (a) penalty-free earnings in the Contract as of that date; or (b) 10% of the Total Invested Amount on deposit for at least one year, less any withdrawals already made during the year. Although amounts withdrawn free of a Withdrawal Charge may reduce principal, they do not reduce the Total Invested Amount for purposes of calculating the Withdrawal Charge or for the purposes of calculating penalty-free earnings in the Contract. As a result, You will not receive the benefit of a Penalty-Free Withdrawal in a full surrender. 14 SYSTEMATIC WITHDRAWAL PROGRAM Prior to the Annuity Date, You may elect to participate in the Systematic Withdrawal Program by informing Us at Our Annuity Service Center. The Systematic Withdrawal Program allows You to make automatic withdrawals from your account monthly, quarterly, semiannually or annually. The minimum systematic withdrawal amount is subject to Company limits. Any amount withdrawn through the Systematic Withdrawal Program may be subject to a Withdrawal Charge and a Market Value Adjustment as discussed in the WITHDRAWAL CHARGE, PENALTY-FREE WITHDRAWALS and MARKET VALUE ADJUSTMENT provisions. You may terminate Your participation in the Systematic Withdrawal Program at any time by sending a written request to Us. Systematic withdrawals will be deducted from the Penalty-Free Withdrawal amount available each Contract Year. GENERAL PROVISIONS ENTIRE CONTRACT The entire contract between You and Us consists of the Application as completed by You at the time of purchase, this Contract and any attached endorsement(s). An agent cannot change the terms or conditions of this Contract. Any change must be in writing and approved by Us. Only Our President, Secretary, or one of Our Vice-Presidents can give Our approval. CHANGE OF ANNUITANT If the Owner is an individual, the Owner may change the Annuitant at any time prior to the Annuity Date. To make a change, the Owner must send a written notice to Us at least 30 days before the Annuity Date. If the Owner is not an individual, the Owner may not change the Annuitant. DEATH OF ANNUITANT If the Owner and Annuitant are different and the Annuitant dies before the Annuity Date, the Owner becomes the Annuitant until such time as the Owner elects a new Annuitant. If there are Joint Annuitants, upon the death of any Annuitant prior to the Annuity Date, the Owner may elect a new Joint Annuitant. However, if the Owner is a non-natural person, We will treat the death of any Annuitant as the death of the "primary Annuitant" and as the death of the Owner, see DEATH PROVISIONS. MISSTATEMENT OF AGE OR SEX If the Age or sex of any Annuitant has been misstated, future annuity payments will be adjusted using the correct Age and sex, according to Our rates in effect on the date that annuity payments were determined. Any overpayment from the Fixed Annuity Payment Options, plus interest at the rate of 4% per year, will be deducted from the next payment(s) due. Any underpayment from the Fixed Annuity Payment Options, plus interest at the rate of 4% per year, will be paid in full with the next payment due. Any overpayment from the Subaccounts will be deducted from the next payment(s) due. Any underpayment from the Subaccounts will be paid in full with the next payment due. 15 PROOF OF AGE, SEX, OR SURVIVAL The Company may require satisfactory proof of correct Age or sex at any time. If any payment under this Contract depends on the Annuitant being alive, the Company may require satisfactory proof of survival. CONFORMITY WITH STATE LAWS The provisions of this Contract will be interpreted by the laws of the state in which the Application Form was signed or such state as is required by law. Any provision which, on the Contract Date, is in conflict with the law of such state is amended to conform to the minimum requirements of such law. CHANGES IN LAW If the laws governing this Contract or the taxation of benefits under the Contract change, We reserve the right to amend this Contract to comply with these changes. ASSIGNMENT You may assign this Contract before the Annuity Date, but We will not be bound by an assignment unless it is received by Us in writing. Your rights and those of any other person referred to in this Contract will be subject to the assignment. Certain assignments may be taxable. We do not assume any responsibility for the validity or tax consequences of any assignment. CLAIMS OF CREDITORS To the extent permitted by law, no rights or proceeds payable under this Contract will be subject to claims of creditors or legal process. PREMIUM TAXES AND OTHER TAXES The Company may deduct from Your Contract Value any premium tax or other taxes payable to a state or other government entity, if applicable. Should We advance any amount so due, We are not waiving any right to collect such amount at a later date. The Company will deduct any withholding taxes required by applicable law. WRITTEN NOTICE Any notice We send to You will be sent to Your address shown in the Application unless You request otherwise. Any written request or notice to Us must be sent to Our Annuity Service Center, as specified on the Contract Data Page. PERIODIC REPORTS During each Contract Year, We will send You quarterly statements of the account activity of the Contract as well as confirmation reports after each financial transaction. The statement will include all transactions, which have occurred during the quarterly accounting period shown on the statement. INCONTESTABILITY This Contract will be incontestable from the Contract Date. NONPARTICIPATING This Contract does not share in Our surplus. 16 DEATH PROVISIONS Notwithstanding any provision of this Contract to the contrary, all payments of benefits under this Contract will be made in a manner that satisfies IRC Section 72(s), as amended from time to time. If the Contract is owned by a trust or other non-natural person, We will treat the death of the Annuitant as the death of the "primary Annuitant", as defined in IRC Section 72(s)(6), and as the death of any Owner. DEATH OF OWNER BEFORE THE ANNUITY DATE We will pay a death benefit to the Beneficiary upon Our receiving: (a) due proof that the Owner died before the Annuity Date; and (b) an election form selecting the death benefit option. If no election form is received within 60 days of Our receipt of due proof of death, the death benefit will be paid in accordance with death benefit option 1 below. The Beneficiary must select one of the following death benefit options: 1. Immediately collect the death benefit in a lump sum payment. If a lump sum payment is elected, payment will be in accordance with any applicable laws and regulations governing payments and death; or 2. Collect the death benefit in the form of one of the Annuity Payment Options. The payments must be over the life of the Beneficiary or over a period not extending beyond the life expectancy of the Beneficiary. Payments under this death benefit option must commence within one year after the Owner's death, otherwise, the death benefit will be paid in accordance with death benefit option 1; or 3. If the Beneficiary is the Owner's spouse, the Beneficiary may elect to become the Owner and continue the Contract in force, however, no death benefit is paid. Upon the new Owner's subsequent death, the entire interest must be distributed immediately. In any event, the entire interest in the Contract will be distributed within five years from the date of death of the Owner. DUE PROOF OF DEATH Due Proof of Death means: 1. a certified copy of a death certificate; or 2. a certified copy of a decree of a court of competent jurisdiction as to the finding of death; or 3. a written statement by a medical doctor who attended the deceased Owner at the time of death; or 4. any other proof satisfactory to Us. AMOUNT OF DEATH BENEFIT Before You attain age 75 the amount of the death benefit is equal to the greater of: 1. the Contract Value at the end of the NYSE business day during which We receive, at Our Annuity Service Center, due proof of the Owner's death and an election of the type of payment to be made; Or 17 2. Purchase Payments less any partial withdrawals, compounded until the date of death at 3% interest, plus any Purchase Payments and less any withdrawals recorded after the date of death. After You attain age 75, the death benefit will be the greater of: 1. the Contract Value at the end of the NYSE business day during which We receive, at Our Annuity Service Center, due proof of the Owner's death and an election of the type of payment to be made; Or 2. Purchase Payments less any partial withdrawals, compounded until the attainment of age 75 at 3% interest, plus any Purchase Payments and less any partial withdrawals recorded after the attainment of age 75. DEATH OF OWNER OR ANNUITANT ON OR AFTER THE ANNUITY DATE If the Owner or Annuitant dies on or after the Annuity Date and before the entire interest in the Contract has been distributed, We will pay the remaining portion of the interest of the Contract as under the annuity payment option being used on the date of death. For further information pertaining to death of the Annuitant, see ANNUITY PAYMENT OPTIONS. BENEFICIARY The Beneficiary is selected by the Owner. While (a) the Owner is living; and (b) before the Annuity Date, the Owner may change the Beneficiary by written notice in a form satisfactory to Us. The change will take effect on the date We record the proper notice subject to any payments We have made. If two or more persons are named, (a) those surviving the Owner will share equally unless otherwise stated; and (b) the Beneficiaries must elect to receive their respective portions of the death benefit according to the options listed under DEATH OF OWNER BEFORE THE ANNUITY DATE. If the Annuitant survives the Owner, and there are no surviving Beneficiaries, the Annuitant will be deemed the Beneficiary. Joint Owners, if applicable, shall be each other's primary Beneficiary. Joint Annuitants, if any, when the Owner is a non-natural person, shall be each other's primary Beneficiary. Any other Beneficiary designated on the Application Form will be treated as a contingent Beneficiary. If the Owner is also the Annuitant and there are no surviving Beneficiaries at the death of the Owner, the death benefit will be paid to the estate of the Owner in accordance with option 1, under DEATH OF OWNER BEFORE THE ANNUITY DATE. 18 ANNUITY PROVISIONS ANNUITY DATE The Owner selects an Annuity Date (the date on which annuity payments are to begin) at the time of application. The Owner may change the Annuity Date at any time, at least seven days prior to the Annuity Date, by written notice to the Company at its Annuity Service Center. The Annuity Date must always be the first day of the calendar month and must be at least two years after the Contract Date, but not beyond the later of the Owner's 90th birthday or ten years after the Contract Date. If the Owner is a non-natural person, the latest annuity date is the later of the Annuitant's 90th birthday or ten years after the Contract Date. If no Annuity Date is selected, the Annuity Date will be the latest Annuity Date, as set by the Company. PAYMENTS TO OWNER Unless You request otherwise, We will make annuity payments to You. If You want the annuity payments to be made to some other Payee, We will make such payments subject to receipt of a written request filed at the Annuity Service Center no later than thirty (30) days before the date of the first annuity payment. Any such request is subject to the rights of any assignee. No payments available to or being paid to the Payee while the Annuitant is alive can be transferred, commuted, anticipated or encumbered. FIXED ANNUITY PAYMENTS If a Fixed Annuity payment option has been elected, the proceeds payable under this Contract less any applicable premium taxes, shall be applied to the payment of the Fixed Annuity payment option elected at rates which are at least equal to the annuity rates based upon the applicable tables in the Contract. In no event will the Fixed Annuity payments be changed once they begin. AMOUNT OF FIXED ANNUITY PAYMENTS The amount of each Fixed Annuity payment will be determined by applying the portion of the Contract Value allocated to Fixed Annuity payments less any applicable premium taxes to the annuity table applicable to the Fixed Annuity payment option chosen. AMOUNT OF VARIABLE ANNUITY PAYMENTS (a) FIRST VARIABLE ANNUITY PAYMENT: The dollar amount of the first Variable Annuity payment will be determined by applying the portion of the Contract Value allocated to the Subaccount, less any applicable premium taxes, to the annuity table applicable to the Variable Annuity payment option chosen. If the Contract Value is allocated to more than one Subaccount, the value of Your interest in each Subaccount is applied separately to the Variable Annuity payment option table to determine the amount of the first annuity payment attributable to each Subaccount. (b) NUMBER OF VARIABLE ANNUITY UNITS: The number of Annuity Units for each applicable Subaccount is the amount of the first annuity payment attributable to that Subaccount divided by the value of the applicable Annuity Unit for that Subaccount as of the Annuity Date. The number will not change as a result of investment experience. 19 (c) VALUE OF EACH VARIABLE ANNUITY UNIT: The initial value of an Annuity Unit of each Subaccount was set at $10 when the Subaccounts were established. The value may increase or decrease from one month to the next. For any month, the value of an Annuity Unit of a particular Subaccount is the value of that Annuity Unit as of the last NYSE business day of the preceding month, multiplied by the Net Investment Factor for that Subaccount for the last NYSE business day of the current month. The Net Investment Factor for any Subaccount for a certain month is determined by dividing (1) by (2) where: (1) the Accumulation Unit Value of the Subaccount determined as of the last business day at the end of that month; (2) the Accumulation Unit value of the Subaccount determined as of the last business day at the end of the preceding month. The result is then multiplied by a factor that neutralizes the assumed investment rate of 3.5%. (d) SUBSEQUENT VARIABLE ANNUITY PAYMENTS: After the first Variable Annuity payment, payments will vary in amount according to the investment performance of the applicable Subaccount(s) to which Your Purchase Payments are allocated. The amount may change from month to month. The amount of each subsequent payment for each Subaccount is: The number of Annuity Units for each Subaccount as determined for the first annuity payment MULTIPLIED BY The value of an Annuity Unit for that Subaccount at the end of the month immediately preceding the month in which payment is due. We guarantee that the amount of each Variable Annuity payment will not be affected by variations in expenses or mortality experience. 20 ANNUITY PAYMENT OPTIONS During the Annuitant's life, upon written election and the return of this Contract to the Company at its Annuity Service Center, the Contract Value may be applied to provide one of the following options or any annuity payment option that is mutually agreeable. After two years from the Contract Date, and prior to the Annuity Date, You can choose one of the options described below. If no option has been elected by the Annuity Date, You will automatically receive Option 4 below with 120 monthly payments guaranteed. OPTIONS 1 & 1v - LIFE ANNUITY, LIFETIME MONTHLY PAYMENTS GUARANTEED Payments payable to a Payee during the lifetime of the Annuitant. No further payments are payable after the death of the Annuitant. OPTIONS 2 & 2v - JOINT AND SURVIVOR LIFE ANNUITY Payments payable to the Payee during the lifetime of the Annuitant and during the lifetime of a designated second person. No further payments are payable after the deaths of both the Annuitant and the designated second person. OPTIONS 3 & 3v - JOINT AND SURVIVOR LIFE ANNUITY - 120 OR 240 MONTHLY PAYMENTS GUARANTEED Payments are payable to the Payee during the lifetime of the Annuitant and during the lifetime of a designated second person. If, at the death of the survivor, payments have been made for less than 120 or 240 monthly periods, the remaining guaranteed annuity payments will be continued to the Beneficiary. OPTIONS 4 & 4v - LIFE ANNUITY WITH 120 OR 240 MONTHLY PAYMENTS GUARANTEED Payments payable to the Payee during the lifetime of the Annuitant. If, at the death of the Annuitant, payments have been made for less than the 120 or 240 monthly periods, as selected at the time of annuitization, the remaining guaranteed annuity payments will be continued to the Beneficiary. OPTIONS 5 & 5v - FIXED PAYMENTS FOR A SPECIFIED PERIOD CERTAIN Payments are payable to the Payee for any specified period of time of five (5) years or more, but not exceeding thirty (30) years, as selected at the time of annuitization. The selection must be made for full twelve-month periods. In the event of death of the Annuitant, any remaining annuity payments will be continued to the Beneficiary. If Variable Annuity Payments are elected under this Annuity Payment Option, any remaining guaranteed Variable Annuity payments may be redeemed for a discounted value determined by Us. Any applicable Withdrawal Charges will be deducted from the discounted value as if You fully surrendered Your Contract. 21 FIXED ANNUITY PAYMENT OPTIONS TABLE BASIS OF COMPUTATION The actuarial basis for the Table of Annuity Rates is the 1983a Annuity Mortality Table with projection and a guaranteed interest rate of 3%. The mortality table is projected using Projection Scale G factors, assuming annuitization in the year 2000. The Fixed Annuity Payment Options Table does not include any applicable premium tax. OPTIONS 1 & 4 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
OPTION 1 OPTION 4 OPTION 4 LIFE ANNUITY LIFE ANNUITY AGE OF (W/120 PAYMENTS (W/240 PAYMENTS ANNUITANT LIFE ANNUITY GUARANTEED) GUARANTEED) MALE FEMALE MALE FEMALE MALE FEMALE 55 4.23 3.84 4.19 3.82 4.05 3.76 56 4.32 3.91 4.27 3.88 4.11 3.81 57 4.41 3.98 4.35 3.95 4.17 3.87 58 4.51 4.05 4.44 4.02 4.24 3.93 59 4.61 4.13 4.54 4.10 4.31 4.00 60 4.72 4.22 4.64 4.18 4.37 4.06 61 4.84 4.31 4.74 4.27 4.44 4.13 62 4.96 4.40 4.85 4.36 4.51 4.20 63 5.10 4.51 4.97 4.45 4.58 4.27 64 5.24 4.62 5.10 4.55 4.65 4.35 65 5.40 4.73 5.22 4.66 4.72 4.42 66 5.56 4.86 5.36 4.78 4.79 4.50 67 5.74 4.99 5.50 4.90 4.86 4.57 68 5.93 5.14 5.65 5.02 4.92 4.65 69 6.13 5.29 5.80 5.16 4.99 4.73 70 6.35 5.46 5.96 5.30 5.05 4.80 71 6.58 5.64 6.13 5.46 5.10 4.88 72 6.82 5.84 6.29 5.62 5.16 4.95 73 7.08 6.05 6.47 5.78 5.20 5.02 74 7.36 6.28 6.64 5.96 5.25 5.08 75 7.66 6.53 6.82 6.14 5.29 5.14 76 7.98 6.80 7.00 6.33 5.33 5.19 77 8.33 7.09 7.19 6.53 5.36 5.24 78 8.69 7.41 7.37 6.73 5.39 5.29 79 9.09 7.75 7.55 6.94 5.41 5.33 80 9.51 8.11 7.73 7.14 5.43 5.36 81 9.97 8.51 7.91 7.35 5.45 5.39 82 10.45 8.94 8.08 7.55 5.47 5.42 83 10.97 9.41 8.24 7.76 5.48 5.44 84 11.52 9.92 8.40 7.95 5.49 5.46 85 12.10 10.47 8.54 8.13 5.50 5.48
22 OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.) JOINT & 100% SURVIVOR LIFE ANNUITY
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT ----------- ----------------------- 55 60 65 70 75 80 85 55 3.54 3.69 3.84 3.96 4.06 4.13 4.17 60 3.63 3.83 4.04 4.23 4.39 4.52 4.60 65 3.70 3.95 4.23 4.51 4.78 5.00 5.16 70 3.75 4.04 4.39 4.78 5.18 5.56 5.85 75 3.78 4.11 4.51 5.01 5.57 6.14 6.65 80 3.81 4.15 4.60 5.18 5.89 6.70 7.52 85 3.82 4.18 4.66 5.30 6.14 7.18 8.35
OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT ----------- ----------------------- 55 60 65 70 75 80 85 55 3.54 3.69 3.83 3.96 4.05 4.12 4.16 60 3.63 3.83 4.03 4.22 4.38 4.50 4.57 65 3.70 3.95 4.22 4.50 4.76 4.97 5.10 70 3.75 4.04 4.38 4.76 5.15 5.48 5.72 75 3.78 4.10 4.50 4.98 5.50 6.00 6.40 80 3.80 4.14 4.58 5.13 5.78 6.46 7.04 85 3.81 4.16 4.62 5.22 5.97 6.80 7.55
OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT ----------- ----------------------- 55 60 65 70 75 80 85 55 3.53 3.68 3.81 3.92 3.99 4.03 4.04 60 3.62 3.81 4.00 4.16 4.27 4.34 4.37 65 3.68 3.92 4.16 4.39 4.56 4.66 4.71 70 3.72 3.99 4.29 4.58 4.81 4.96 5.03 75 3.74 4.03 4.36 4.70 4.99 5.17 5.26 80 3.75 4.05 4.40 4.77 5.09 5.30 5.40 85 3.76 4.06 4.42 4.80 5.13 5.35 5.46
23
FIXED PAYMENT FOR SPECIFIED PERIOD NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT -------- ------- -------- ------- -------- ------- -------- ------- 10 9.61 17 6.23 24 4.84 11 8.86 18 5.96 25 4.71 5 17.91 12 8.24 19 5.73 26 4.59 6 15.14 13 7.71 20 5.51 27 4.47 7 13.16 14 7.26 21 5.32 28 4.37 8 11.68 15 6.87 22 5.15 29 4.27 9 10.53 16 6.53 23 4.99 30 4.18
24 VARIABLE ANNUITY PAYMENT OPTIONS TABLE BASIS OF COMPUTATION The actuarial basis for the Table of Annuity Rates is the 1983a Annuity Mortality Table with projection and an effective annual Assumed Investment Rate of 3.5%. The mortality table is projected using Projection Scale G factors, assuming annuitization in the year 2000. The Variable Annuity Payment Options Table does not include any applicable premium tax. OPTIONS 1v& 4v - TABLE OF MONTHLY INSTALLMENTS PER $1,000 (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.)
OPTION 1v OPTION 4v OPTION 4v LIFE ANNUITY LIFE ANNUITY AGE OF (W/120 PAYMENTS (W/240 PAYMENTS ANNUITANT LIFE ANNUITY GUARANTEED) GUARANTEED) MALE FEMALE MALE FEMALE MALE FEMALE 55 4.53 4.13 4.48 4.11 4.33 4.05 56 4.62 4.20 4.56 4.18 4.39 4.10 57 4.71 4.27 4.64 4.24 4.45 4.16 58 4.80 4.34 4.73 4.31 4.52 4.22 59 4.90 4.42 4.82 4.39 4.58 4.28 60 5.01 4.51 4.92 4.47 4.65 4.34 61 5.13 4.60 5.03 4.55 4.71 4.41 62 5.26 4.69 5.14 4.64 4.78 4.48 63 5.39 4.80 5.25 4.74 4.85 4.55 64 5.54 4.91 5.38 4.84 4.92 4.62 65 5.69 5.02 5.51 4.94 4.99 4.69 66 5.86 5.15 5.64 5.06 5.05 4.77 67 6.03 5.28 5.78 5.18 5.12 4.84 68 6.22 5.43 5.93 5.30 5.18 4.92 69 6.43 5.58 6.08 5.44 5.24 4.99 70 6.64 5.75 6.23 5.58 5.30 5.06 71 6.87 5.93 6.40 5.73 5.36 5.14 72 7.12 6.13 6.56 5.89 5.41 5.21 73 7.38 6.34 6.73 6.06 5.46 5.27 74 7.66 6.57 6.91 6.23 5.50 5.33 75 7.96 6.82 7.09 6.41 5.54 5.39 76 8.28 7.09 7.27 6.60 5.57 5.44 77 8.63 7.38 7.45 6.79 5.61 5.49 78 9.00 7.70 7.63 6.99 5.63 5.54 79 9.40 8.04 7.81 7.19 5.66 5.58 80 9.82 8.41 7.98 7.40 5.68 5.61 81 10.28 8.81 8.16 7.60 5.70 5.64 82 10.76 9.24 8.32 7.81 5.71 5.66 83 11.28 9.71 8.48 8.00 5.72 5.69 84 11.83 10.23 8.64 8.19 5.73 5.70 85 12.42 10.78 8.78 8.38 5.74 5.72
25 OPTION 2v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.) JOINT & 100% SURVIVOR LIFE ANNUITY
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT 55 60 65 70 75 80 85 55 3.83 3.98 4.12 4.24 4.34 4.42 4.46 60 3.92 4.11 4.32 4.51 4.67 4.80 4.89 65 3.99 4.23 4.50 4.79 5.05 5.28 5.44 70 4.04 4.33 4.67 5.05 5.46 5.83 6.13 75 4.07 4.39 4.79 5.28 5.84 6.41 6.93 80 4.10 4.44 4.88 5.45 6.16 6.97 7.79 85 4.11 4.47 4.94 5.57 6.41 7.45 8.61
OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) JOINT AND 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT 55 60 65 70 75 80 85 55 3.83 3.98 4.12 4.24 4.34 4.40 4.45 60 3.92 4.11 4.31 4.50 4.66 4.78 4.86 65 3.99 4.23 4.50 4.78 5.03 5.24 5.38 70 4.04 4.32 4.66 5.03 5.41 5.75 5.99 75 4.07 4.38 4.78 5.25 5.77 6.26 6.66 80 4.09 4.43 4.86 5.40 6.05 6.72 7.29 85 4.10 4.45 4.90 5.50 6.24 7.05 7.80
OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT ----------- ----------------------- 55 60 65 70 75 80 85 55 3.82 3.97 4.10 4.20 4.27 4.31 4.33 60 3.91 4.09 4.28 4.44 4.55 4.61 4.64 65 3.97 4.20 4.44 4.66 4.83 4.93 4.97 70 4.01 4.27 4.56 4.84 5.07 5.21 5.28 75 4.03 4.31 4.64 4.97 5.25 5.42 5.51 80 4.04 4.33 4.67 5.03 5.34 5.55 5.65 85 4.05 4.34 4.69 5.06 5.38 5.60 5.70
26 OPTION 5v - TABLE OF MONTHLY INSTALLMENTS PER $1,000.
PAYMENTS FOR A SPECIFIED PERIOD NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT -------- ------- -------- ------- -------- ------- -------- ------- 10 9.83 17 6.47 24 5.09 11 9.09 18 6.20 25 4.96 5 18.12 12 8.46 19 5.97 26 4.84 6 15.35 13 7.94 20 5.75 27 4.73 7 13.38 14 7.49 21 5.56 28 4.63 8 11.90 15 7.10 22 5.39 29 4.53 9 10.75 16 6.76 23 5.24 30 4.45
27 ANCHOR NATIONAL LIFE INSURANCE COMPANY A STOCK COMPANY LOS ANGELES, CALIFORNIA INDIVIDUAL FIXED AND VARIABLE ANNUITY CONTRACT Nonparticipating 28 EX-99.4(B) 3 a2026237zex-99_4b.txt EXHIBIT 99.4(B) ANCHOR NATIONAL LIFE INSURANCE COMPANY INDIVIDUAL RETIREMENT ANNUITY ENDORSEMENT This Endorsement amends the Contract to which it is attached so that it may qualify as an Individual Retirement Annuity (IRA) under Section 408(b) of the Internal Revenue Code (Code) and the Regulations under that Section. The endorsement may be amended from time to time to comply with changes in the Internal Revenue Code. The Owner has the right to refuse to accept any such amendment; however, we shall not be held liable for any tax consequences incurred by the Owner as a result of such refusal. In the case of a conflict with any provision in the Contract, the provisions of this Endorsement will control. The effective date of this Endorsement is the Contract Date shown on the Contract Data Page. The Contract is amended as follows: 1. The Owner, Annuitant and Payee shall be the same individual. The Owner, Annuitant and Payee cannot be changed, except as otherwise permitted under the IRC and applicable regulations. All distributions made while the Owner is alive must be made to the Owner. 2. The interest of the Owner under this Contract shall be nonforfeitable except as provided by law. 3. The Contract may not be sold, assigned, discounted, pledged as collateral for a loan or as security for the performance of any obligation or for any other purpose, or otherwise transferred (other than a transfer incident to a divorce or separation instrument in accordance with Section 408(d)(6) of the Code) to any person other than to the Company. 4. This Contract is established for the exclusive benefit of the Owner and his or her Beneficiary(ies). 5. Except in the case of a rollover contribution (as permitted by Code Sections 402(c), 403(a)(4), 403(b)(8), or 408(d)(3)(1)), or a contribution made in accordance with the terms of a Simplified Employee Pension (SEP) as described in Code Section 408(k), or a nontaxable transfer from an individual retirement account under 408(a) of the Code or another IRA under Section 408(b) of the Code, contributions shall not exceed $2,000 for any taxable year. All contributions must be in cash. Any refund of premiums (other than those attributable to excess contributions) will be applied, before the close of the calendar year following the year of the refund, toward the payment of future premiums or the purchase of additional benefits. No contribution will be accepted under a SIMPLE IRA plan established by any employer pursuant to Code section 408(p). No transfer or rollover of funds attributable to contributions made by a particular employer under its SIMPLE IRA plan will be accepted from a SIMPLE IRA, that is, an IRA used in conjunction with a SIMPLE IRA plan, prior to the expiration of the 2-year period beginning on the date the individual first participated in that employer's SIMPLE IRA plan. 1 6. Unless otherwise permitted under applicable law, the Owner's entire interest in the Contract shall be distributed no later than the "required beginning date," or commence to be distributed beginning no later than the "required beginning date," over (a) the life of the Owner, or the lives of the Owner and his or her designated Beneficiary (within the meaning of section 401(a) of the Code), or (b) a period certain not extending beyond the life expectancy of the Owner, or the joint and last survivor expectancy of the Owner and his or her Beneficiary as required by law. As used in this Endorsement, the term "required beginning date" means April 1 of the calendar year following the calendar year in which the Owner attains age 70 1/2, or such later date provided by law. Payments must be made in periodic payments at intervals of no longer than one year. In addition, payments must be either nonincreasing or they may increase only as provided in Q&A F-3 of Section 1.401(a)(9)-1 of the Proposed Income Tax Regulations. If the Owner's interest is to be distributed over a period greater than one year, the amount to be distributed by December 31 of each year (including the year in which the required beginning date occurs will be made in accordance with the requirements of Code Section 401(a)(9), including the incidental death benefit requirements of Code Section 401(a)(9)(G), and the regulations thereunder, including the minimum distribution incidental benefit requirement of Code Section 1.401(a)(9)-2 of the Proposed Income Tax Regulations. Life expectancy is computed by use of the expected return multiples in Tables V and VI of Section 1.72-9 of the Income Tax Regulations. Unless otherwise elected by the Owner by the time distributions are required to begin, life expectancies shall be recalculated annually. Such election shall be irrevocable by the Owner and shall apply to all subsequent years. The life expectancy of a non-spouse designated Beneficiary may not be recalculated. Instead, life expectancy will be calculated using the attained age of such designated Beneficiary during the calendar year in which the Owner attains age 70 1/2, and payments for subsequent years shall be calculated based on such life expectancy reduced by one for each calendar year which has elapsed since the calendar year life expectancy was first calculated. Life expectancy for distributions under an Annuity Payment Option may not be recalculated. 7. Unless otherwise permitted under applicable law, upon the death of the Owner: (a) if the Owner dies on or after the required beginning date (or if distributions have begun before the required beginning date as irrevocable annuity payments), the remaining portion of the Owner's interest (if any) shall be distributed at least as rapidly as under the method of distribution in effect as of the Owner's death; 2 (b) if the Owner dies before the required beginning date and an irrevocable annuity distribution has not begun, the entire interest will be distributed by December 31 of the calendar year which contains the fifth anniversary of the Owner's death except that: (1) if the interest is payable to an individual who is the Owner's designated Beneficiary, the designated Beneficiary may elect to receive the entire interest over the life of the designated Beneficiary or over a period not extending beyond the life expectancy of the designated Beneficiary, commencing on or before December 31 of the calendar year immediately following the calendar year in which the Owner died; or (2) if the designated Beneficiary is the Owner's surviving spouse, the surviving spouse may elect to receive the entire interest over the life of the surviving spouse or over a period not extending beyond the life expectancy of the surviving spouse, commencing at any date on or before the later of (A) December 31 of the calendar year immediately following the calendar year in which the Owner died or (B) December 31 of the calendar year in which the Owner would have attained age 70 1/2. If the surviving spouse dies before distributions begin, the limitations of this paragraph 7 (without regard to this paragraph (b)) will be applied as if the surviving spouse were the Owner. An irrevocable election of the method of distribution by a designated Beneficiary who is the surviving spouse must be made no later than the earlier of December 31 of the calendar year containing the fifth anniversary of the Owner's death or the date distributions are required to begin pursuant to this paragraph (b). (3) if the designated Beneficiary is the Owner's surviving spouse, the spouse may irrevocably elect to treat the Contract as his or her own IRA. This election will be deemed to have been made if such surviving spouse, subject to the requirements of Section 5 of this Endorsement, (i) makes a regular IRA contribution to the Contract, (ii) makes a rollover to or from the Contract, or (iii) fails to elect that his or her interest will be distributed in accordance with one of the preceding provisions of this paragraph (b). An irrevocable election of the method of distribution by a designated Beneficiary who is not the surviving spouse must be made no later than December 31 of the calendar year immediately following the calendar year in which the Owner died. If no such election is made, the entire interest will be distributed by December 31 of the calendar year containing the fifth anniversary of the Owner's death. Life expectancy is computed by use of the expected return multiples in Tables V and VI of Section 1.72-9 of the Income Tax Regulations. For purposes of distributions beginning after the Owner's death, unless otherwise elected by the surviving spouse by 3 the time distributions are required to begin, life expectancies shall be recalculated annually. Such election shall be irrevocable by the surviving spouse and shall apply to all subsequent years. In the case of any other designated Beneficiary, life expectancies shall be calculated using the attained age of such designated Beneficiary during the calendar year in which distributions are required to begin pursuant to this section, and payments for any subsequent calendar year shall be calculated based on such life expectancy reduced by one for each calendar year which has elapsed since the calendar year life expectancy was first calculated. Life expectancy for distributions under an Annuity Payment Option in the Contract may not be recalculated. Distributions under this section are considered to have begun if distributions are made on account of the Owner reaching his or her required beginning date or if prior to the required beginning date distributions irrevocably commence over a period permitted and in an annuity form acceptable under Section 1.401(a)(9) of the Proposed Income Tax Regulations. 8. The Company shall furnish annual calendar year reports concerning the status of the Contract. The following provisions entitled MISSTATEMENT OF AGE, PROOF OF AGE AND SURVIVAL and the table of Annuity Payment Options apply to Simplified Employee Pension (SEP) contracts only: 9. The MISSTATEMENT OF AGE OR SEX section of the Contract is deleted and replaced by the following section entitled MISSTATEMENT OF AGE. MISSTATEMENT OF AGE If the Age of any Annuitant has been misstated, future annuity payments will be adjusted using the correct Age according to Our rates in effect on the date that annuity payments were determined. Any overpayment from the Fixed Account Options, plus interest at the rate of 4% per year, will be deducted from the next payment(s) due. Any underpayment from the Fixed Account Options, plus interest at the rate of 4% per year, will be paid in full with the next payment due. Any overpayment from the Subaccounts will be deducted from the next payment(s) due. Any underpayment from the Subaccounts will be paid in full with the next payment due. 10. The PROOF OF AGE, SEX OR SURVIVAL section of the Contract is deleted and replaced by the following section entitled PROOF OF AGE AND SURVIVAL. PROOF OF AGE AND SURVIVAL. We may require satisfactory proof of correct age at anytime. If any payment under this Contract depends on the Annuitant being alive, we may require satisfactory proof of survival. 11. Except to the extent Treasury regulations allow us to offer additional Annuity Payment Options that are acceptable to us, only Annuity Payment Options 1 and 1v, 2 and 2v, 3 and 3v, 4 and 4v, 5 and 5v shall be offered unless we consent to the use of an additional option. Under Annuity Payment Options 2 and 2v, and 3 and 3v, the designated second person must be either the Owner's spouse or an individual who is not more than 10 years 4 younger than the Owner. Annuity Payment Options 3 and 3v are not available to an Owner and the designated second person where the life expectancy of the Owner and such person is less than 10 years. Also, Annuity Payment Options 4 and 4v are not available to an Owner where the Owner's life expectancy is less than 10 years, and Annuity Payment Options 5 and 5v are not available to an Owner where the Owner's life expectancy is less than 5 years. Any additional Annuity Payment Option under the Contract must meet the requirements of section 408(b) of the Code and applicable regulations. The provisions of this Endorsement reflecting the requirements of Code Sections 401(a)(9) and 408(b) override any additional Annuity Payment Option inconsistent with such requirements. If a guaranteed or specified period of payments is chosen under an Annuity Payment Option, the length of the period must not exceed the shorter of (1) the Owner's life expectancy, or if a designated second person is named, the joint and last survivor expectancy of the Owner and the designated second person, and (2) the applicable maximum period under Section 1.401(a)(9)-2 of the Proposed Income Tax Regulations. 12. If you return the Contract within 10 days after the Contract Date, the Company will refund the amount of your Purchase Payments, without adjustment for such items as sales commissions, administrative expenses, and fluctuation in market value for the Valuation Period in which the Contract is received. We reserve the right to allocate your Purchase Payment(s) to the Cash Management Subaccount until the end of the 10 day period. Thereafter, allocations will be made as shown on the Contract Data Page. 13. The provisions of this Endorsement are intended to comply with the requirements of the Code and applicable regulations for IRAs under Section 408(b) of the Code. The Company reserves the right to amend the Contract and this Endorsement from time to time, without the Owner's consent, when such amendment is necessary to assure continued qualification of the Contract as an IRA under Section 408(b) of the Code (and any successor provision) as in effect from time to time. The Owner has the right to refuse to accept any such amendment; however, we shall not be held liable for any tax consequences incurred by the Owner as a result of such refusal. 14. The table in the Annuity Payment Options section are deleted and replaced by the following: 5 FIXED ANNUITY PAYMENT OPTIONS TABLE BASIS OF COMPUTATION The actuarial basis for the Table of Annuity Rates is the 1983a Annuity Mortality Table with projection and a guaranteed interest rate of 3%. The mortality table is projected using Projection Scale G factors, assuming annuitization in the year 2000. The Fixed Annuity Payment Options Table does not include any applicable premium tax. OPTIONS 1 & 4 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (Monthly installments for ages not shown will be furnished upon request.)
OPTION 1 OPTION 4 OPTION 4 LIFE ANNUITY LIFE ANNUITY AGE OF (W/120 PAYMENTS (W/240 PAYMENTS ANNUITANT LIFE ANNUITY GUARANTEED) GUARANTEED) 55 4.04 4.00 3.90 56 4.11 4.08 3.96 57 4.19 4.15 4.02 58 4.28 4.23 4.09 59 4.37 4.32 4.15 60 4.47 4.41 4.22 61 4.57 4.50 4.29 62 4.68 4.61 4.36 63 4.80 4.71 4.43 64 4.93 4.82 4.50 65 5.07 4.94 4.57 66 5.21 5.07 4.64 67 5.37 5.20 4.72 68 5.53 5.34 4.79 69 5.71 5.48 4.86 70 5.90 5.63 4.92 71 6.11 5.79 4.99 72 6.33 5.95 5.05 73 6.57 6.13 5.11 74 6.82 6.30 5.16 75 7.10 6.48 5.21 76 7.39 6.67 5.26 77 7.71 6.86 5.30 78 8.05 7.05 5.34 79 8.42 7.24 5.37 80 8.81 7.44 5.40 81 9.24 7.63 5.42 82 9.70 7.82 5.44 83 10.19 8.00 5.46 84 10.72 8.17 5.47 85 11.29 8.34 5.49
6 OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.) JOINT & 100% SURVIVOR LIFE ANNUITY
AGE OF ANNUITANT AGE OF ANNUITANT 55 60 65 70 75 80 85 55 3.54 3.66 3.77 3.86 3.92 3.97 4.00 60 3.66 3.83 4.00 4.14 4.25 4.34 4.39 65 3.77 4.00 4.23 4.45 4.65 4.80 4.91 70 3.86 4.14 4.45 4.78 5.10 5.37 5.58 75 3.92 4.25 4.65 5.10 5.57 6.02 6.40 80 3.97 4.34 4.80 5.37 6.02 6.70 7.35 85 4.00 4.39 4.91 5.58 6.40 7.35 8.35
OPTION 3 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.) JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
AGE OF ANNUITANT AGE OF ANNUITANT 55 60 65 70 75 80 85 55 3.54 3.66 3.77 3.86 3.92 3.96 3.99 60 3.66 3.83 3.99 4.13 4.24 4.32 4.37 65 3.77 3.99 4.22 4.44 4.63 4.78 4.86 70 3.86 4.13 4.44 4.76 5.07 5.31 5.47 75 3.92 4.24 4.63 5.07 5.50 5.89 6.19 80 3.96 4.32 4.78 5.31 5.89 6.46 6.92 85 3.99 4.37 4.86 5.47 6.19 6.92 7.55
OPTION 5 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. FIXED PAYMENT FOR SPECIFIED PERIOD
NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT 10 9.61 17 6.23 24 4.84 11 8.86 18 5.96 25 4.71 5 17.91 12 8.24 19 5.73 26 4.59 6 15.14 13 7.71 20 5.51 27 4.47 7 13.16 14 7.26 21 5.32 28 4.37 8 11.68 15 6.87 22 5.15 29 4.27 9 10.53 16 6.53 23 4.99 30 4.18
7 VARIABLE ANNUITY PAYMENT OPTIONS TABLE BASIS OF COMPUTATION The actuarial basis for the Table of Annuity Rates is the 1983a Annuity Mortality Table with projection and an effective annual Assumed Investment Rate of 3.5%. The mortality table is projected using Projection Scale G factors, assuming annuitization in the year 2000. The Variable Annuity Payment Options Table does not include any applicable premium tax. OPTIONS 1v & 4v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (Monthly installments for ages not shown will be furnished upon request.)
OPTION 1v OPTION 4v OPTION 4v LIFE ANNUITY LIFE ANNUITY AGE OF (W/120 PAYMENTS (W/240 PAYMENTS ANNUITANT LIFE ANNUITY GUARANTEED) GUARANTEED) 55 4.33 4.30 4.19 56 4.41 4.37 4.25 57 4.49 4.44 4.31 58 4.57 4.52 4.37 59 4.66 4.61 4.43 60 4.76 4.70 4.50 61 4.86 4.79 4.56 62 4.98 4.89 4.63 63 5.09 5.00 4.70 64 5.22 5.11 4.77 65 5.36 5.22 4.84 66 5.50 5.35 4.91 67 5.66 5.48 4.98 68 5.83 5.61 5.05 69 6.00 5.76 5.12 70 6.20 5.91 5.18 71 6.40 6.06 5.25 72 6.62 6.23 5.31 73 6.86 6.39 5.36 74 7.12 6.57 5.42 75 7.39 6.75 5.46 76 7.69 6.93 5.51 77 8.01 7.12 5.55 78 8.35 7.31 5.58 79 8.72 7.50 5.62 80 9.11 7.69 5.64 81 9.54 7.88 5.67 82 10.00 8.07 5.69 83 10.50 8.24 5.70 84 11.03 8.42 5.72 85 11.60 8.58 5.73
8 OPTION 2v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.) JOINT & 100% SURVIVOR LIFE ANNUITY
AGE OF ANNUITANT AGE OF ANNUITANT 55 60 65 70 75 80 85 55 3.83 3.95 4.06 4.14 4.21 4.26 4.29 60 3.95 4.11 4.28 4.42 4.53 4.62 4.68 65 4.06 4.28 4.50 4.73 4.92 5.08 5.19 70 4.14 4.42 4.73 5.05 5.37 5.64 5.85 75 4.21 4.53 4.92 5.37 5.84 6.29 6.67 80 4.26 4.62 5.08 5.64 6.29 6.97 7.62 85 4.29 4.68 5.19 5.85 6.67 7.62 8.61
OPTION 3v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST.) JOINT & 100% SURVIVOR LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
AGE OF ANNUITANT AGE OF ANNUITANT 55 60 65 70 75 80 85 55 3.83 3.95 4.06 4.14 4.21 4.25 4.28 60 3.95 4.11 4.27 4.41 4.52 4.61 4.66 65 4.06 4.27 4.50 4.72 4.91 5.05 5.14 70 4.14 4.41 4.72 5.03 5.33 5.58 5.75 75 4.21 4.52 4.91 5.33 5.77 6.16 6.45 80 4.25 4.61 5.05 5.58 6.16 6.72 7.17 85 4.28 4.66 5.14 5.75 6.45 7.17 7.80
OPTION 5v - TABLE OF MONTHLY INSTALLMENTS PER $1,000. PAYMENT FOR SPECIFIED PERIOD
NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY NUMBER MONTHLY OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT OF YEARS PAYMENT 10 9.83 17 6.47 24 5.09 11 9.09 18 6.20 25 4.96 5 18.12 12 8.46 19 5.97 26 4.84 6 15.35 13 7.94 20 5.75 27 4.73 7 13.38 14 7.49 21 5.56 28 4.63 8 11.90 15 7.10 22 5.39 29 4.53 9 10.75 16 6.76 23 5.24 30 4.45
9 All other terms and conditions of the Contract remain unchanged. ANCHOR NATIONAL LIFE INSURANCE COMPANY /s/ Susan L. Harris /s/ Eli Broad ------------------------- ---------------------- Susan L. Harris Eli Broad Secretary President 10 EX-99.4(C) 4 a2026237zex-99_4c.txt EXHIBIT 99.4(C) PURCHASE PAYMENT ACCUMULATION OPTIONAL DEATH BENEFIT ENDORSEMENT This Endorsement is made a part of, and subject to, the other terms and conditions of the Contract to which it is attached. This Endorsement modifies the AMOUNT OF DEATH BENEFIT under the DEATH OF OWNER BEFORE THE ANNUITY DATE and is effective on the Contract Date. The following are added under the DEFINITIONS section of the Contract: CONTINUATION DATE The Date on which We receive, in Our Service Center: (a) the spousal Beneficiary's written request to continue the Contract in force, and (b) Due Proof of Death of the Contract Owner. If We receive (a) and (b) on different dates, the Continuation Date will be the date on which We receive the additional requirement. NET PURCHASE PAYMENT The sum of all Purchase Payments, reduced for any partial withdrawals (and any fees or charges applicable to such withdrawals) in the same proportion that the Contract Value was reduced on the date of such withdrawal. AMOUNT OF DEATH BENEFIT If You are age 80 or younger on the Contract Date, and You die prior to the Annuity Date, the amount of the Death Benefit will be determined based upon the Death Benefit option You selected on the Application. Once a Death Benefit option is selected it cannot be changed or terminated. PURCHASE PAYMENT ACCUMULATION OPTIONAL DEATH BENEFIT CHARGE On an annual basis, this charge equals [.25%] of Your average daily ending value of the assets attributable to the Accumulation Units of the Subaccount(s) to which the Contract is allocated. We deduct this charge daily. This charge is in addition to the charges in Your Contract. PURCHASE PAYMENT ACCUMULATION OPTIONAL DEATH BENEFIT As of the date We receive Due Proof of Death, the Death Benefit will be the greater of: (a) The Contract Value; or (b) Purchase Payment(s) reduced for any partial withdrawals (and any fees or charges applicable to such withdrawals), in the same proportion that the Contract Value was reduced on the date of such withdrawal, compounded at [5%] interest up to the earlier of Your attainment of age 80 or the date of death, plus any Purchase Payment(s) reduced for any partial withdrawals (and any fees or charges applicable to such withdrawals) in the same proportion that the Contract Value was reduced on the date of such withdrawal recorded after the date of death. This benefit will not exceed two times the Net Purchase Payment(s). 1 EARNINGS ENHANCEMENT The Earnings Enhancement is an amount, as described in the Earnings Enhancement table below that can increase the Death Benefit. Earnings equal the excess of Your Contract Value over Net Purchase Payment(s) as of the date of death. If You have earnings in Your Contract at the time We receive Due Proof of Death, We will add a Percentage of Earnings to the amount of Your Death Benefit, subject to a maximum benefit described in the Maximum Benefit Percentage defined below. This Percentage of Earnings is an amount calculated using the percentages described in the Earnings Enhancement table below. The Percentage of Earnings of the Net Purchase Payment(s) depends on how long Your Contract was in force prior to the date of Your death. This benefit is in addition to the Purchase Payment Accumulation Death Benefit.
- ------------------------------------------------------------------------------------------------------ EARNINGS ENHANCEMENT - ------------------------------------------------------------------------------------------------------ - --------------------------------- ---------------------------------------- --------------------------- Contract Year of Death Percentage Maximum Benefit of Earnings Percentage [0-4] [25%] [25%] [5-9] [40%] [40%] [10+] [50%] [50%] - --------------------------------- ---------------------------------------- ---------------------------
For purposes of determining any Earnings Enhancement payable upon Your death the following items in the Earnings Enhancement table are described as follows: (a) CONTRACT YEAR OF DEATH is the number of full years since the Contract Date to the date of Your Death. (b) PERCENTAGE OF EARNINGS is a percentage applied to the earnings in Your Contract since the Contract Date to Your date of death. (c) MAXIMUM BENEFIT PERCENTAGE is a percentage applied to the Net Purchase Payment(s) that defines the maximum benefit of the Earnings Enhancement. SPOUSAL BENEFICIARY CONTINUATION If a spousal Beneficiary elects to continue this Contract as provided under the Spousal Continuation provisions of the Contract, the Earnings Enhancement, if any, will be added to the Death Benefit. For purposes of determining any Earnings Enhancement payable upon the death of the new Contract Owner (spousal Beneficiary who elected to continue the Contract), the following items in the Earnings Enhancement table are described as follows: (a) CONTRACT YEAR OF DEATH is the number of full years since the Continuation Date to the date of death of the new Contract Owner. (b) PERCENTAGE OF EARNINGS is a percentage applied to the earnings in Your Contract since the Continuation Date up to the date of death of the new Contract Owner. (c) MAXIMUM BENEFIT PERCENTAGE is a percentage applied to the sum of (1) and (2) below that defines the maximum benefit of the Earnings Enhancement, where: (1) is the Contract Value on the Continuation Date reduced proportionately by any withdrawals (and any fees or charges applicable to such withdrawals), and (2) is any amount contributed to the Contract on the Continuation Date. 2 Signed for the Company to be effective on the Contract Date. ANCHOR NATIONAL LIFE INSURANCE COMPANY /s/ Christine A. Nixon /s/ Eli Broad - ------------------------ --------------- Christine A. Nixon Eli Broad Assistant Secretary Chairman and Chief Executive Officer 3 EX-99.4(D) 5 a2026237zex-99_4d.txt EXHIBIT 99.4(D) MAXIMUM ANNIVERSARY VALUE OPTIONAL DEATH BENEFIT ENDORSEMENT This Endorsement is made a part of, and subject to, the other terms and conditions of the Contract to which it is attached. This Endorsement modifies the AMOUNT OF DEATH BENEFIT under the DEATH OF OWNER BEFORE THE ANNUITY DATE and is effective on the Contract Date. The following are added under the DEFINITIONS section of the Contract: CONTINUATION DATE The Date on which We receive, in Our Service Center: (a) the spousal Beneficiary's written request to continue the Contract in force, and (b) Due Proof of Death of the Contract Owner. If We receive (a) and (b) on different dates, the Continuation Date will be the date on which We receive the additional requirement. NET PURCHASE PAYMENT The sum of all Purchase Payments, reduced for any partial withdrawals (and any fees or charges applicable to such withdrawals) in the same proportion that the Contract Value was reduced on the date of such withdrawal. AMOUNT OF DEATH BENEFIT If You are age 80 or younger on the Contract Date, and You die prior to the Annuity Date, the amount of the Death Benefit will be determined based upon the Death Benefit option You selected on the Application. Once a Death Benefit option is selected it cannot be changed or terminated. MAXIMUM ANNIVERSARY OPTIONAL DEATH BENEFIT CHARGE On an annual basis, this charge equals [.25%] of Your average daily ending value of the assets attributable to the Accumulation Units of the Subaccount(s) to which the Contract is allocated. We deduct this charge daily. This charge is in addition to the charges in Your Contract. MAXIMUM ANNIVERSARY VALUE OPTIONAL DEATH BENEFIT As of the date We receive Due Proof of Death, the Death Benefit will be the greater of: (a) Purchase Payments reduced for any partial withdrawals (and any fees or charges applicable to such withdrawals) in the same proportion that the Contract Value was reduced on the date of such withdrawal; or (b) Contract Value; or (c) The Maximum Anniversary Value. We will calculate the Maximum Anniversary Value, by determining the Contract Value for each Contract anniversary prior to the Owner's 81st birthday. The anniversary value is equal to the Contract Value at each Contract anniversary increased by the dollar amount of any Purchase Payment(s) made since that anniversary and reduced proportionately for any partial withdrawals (and any fees or charges applicable to such withdrawals) in the same proportion that the Contract 1 Value was reduced on the date of such withdrawal. If any of those anniversary values is greater than Your Contract Value, You will receive that amount as the Maximum Anniversary Value. EARNINGS ENHANCEMENT The Earnings Enhancement is an amount, as described in the Earnings Enhancement table below that can increase the Death Benefit. Earnings equal the excess of Your Contract Value over Net Purchase Payment(s) as of the date of death. If You have earnings in Your Contract at the time We receive Due Proof of Death, We will add a Percentage of Earnings to the amount of Your Death Benefit, subject to a maximum benefit described in the Maximum Benefit Percentage defined below. This Percentage of Earnings is an amount calculated using the percentages described in the Earnings Enhancement table below. The Percentage of Earnings of the Net Purchase Payment(s) depends on how long Your Contract was in force prior to the date of Your death. This benefit is in addition to the Maximum Anniversary Death Benefit.
- ------------------------------------------------------------------------------------------------------ EARNINGS ENHANCEMENT - ------------------------------------------------------------------------------------------------------ Contract Year of Death Percentage Maximum Benefit Percentage of Earnings [0-4] [25%] [25%] [5-9] [40%] [40%] [10+] [50%] [50%] - --------------------------------- --------------------------------------- ----------------------------
For purposes of determining any Earnings Enhancement payable upon Your death the following items in the Earnings Enhancement table are described as follows: (a) CONTRACT YEAR OF DEATH is the number of full years since the Contract Date to the date of Your Death. (b) PERCENTAGE OF EARNINGS is a percentage applied to the earnings in Your Contract since the Contract Date to Your date of death. (c) MAXIMUM BENEFIT PERCENTAGE is a percentage applied to the Net Purchase Payment(s) that defines the maximum benefit of the Earnings Enhancement. SPOUSAL BENEFICIARY CONTINUATION If a spousal Beneficiary elects to continue this Contract as provided under the Spousal Continuation provisions of the Contract, the Earnings Enhancement, if any, will be added to the Death Benefit. For purposes of determining any Earnings Enhancement payable upon the death of the new Contract Owner (spousal Beneficiary who elected to continue the Contract), the following items in the Earnings Enhancement table are described as follows: (a) CONTRACT YEAR OF DEATH is the number of full years since the Continuation Date to the date of death of the new Contract Owner. (b) PERCENTAGE OF EARNINGS is a percentage applied to the earnings in Your Contract since the Continuation Date up to the date of death of the new Contract Owner. (c) MAXIMUM BENEFIT PERCENTAGE is a percentage applied to the sum of (1) and (2) below that defines the maximum benefit of the Earnings Enhancement, where: (1) is the Contract Value on the Continuation Date reduced proportionately by any withdrawals (and any fees or charges applicable to such withdrawals), and (2) is any amount contributed to the Contract on the Continuation Date. 2 Signed for the Company to be effective on the Contract Date. ANCHOR NATIONAL LIFE INSURANCE COMPANY /s/ Christine A. Nixon /s/ Eli Broad - ---------------------- ------------- Christine A. Nixon Eli Broad Assistant Secretary Chairman and Chief Executive Officer 3 EX-99.4(E) 6 a2026237zex-99_4e.txt EXHIBIT 99.4(E) ANCHOR NATIONAL LIFE INSURANCE COMPANY SPOUSAL CONTINUATION DEATH BENEFIT ENDORSEMENT This endorsement forms a part of the Contract to which it is attached. The following provision is modified to replace option #3 under DEATH OF OWNER BEFORE THE ANNUITY DATE as follows: 3. If the Beneficiary is the Owner's surviving spouse, the Beneficiary may elect to become the new Owner and continue the Contract in force. If the spousal Beneficiary elects to continue the Contract under this provision, no Death Benefit is paid at that time. Upon election of this spousal continuation, We will contribute to the Contract any amount by which the Death Benefit that would have been payable, exceeds the Contract Value. The amount We contribute is not considered a Purchase Payment. This amount will be calculated using the Contract Value and any applicable Death Benefit as of the Owner's date of death and after We receive: (a) the spousal Beneficiary's written request to continue this Contract and (b) Due Proof of Death of the Owner. This amount, if any, will be added to the Contract Value as of the date that We receive (a) and (b). The age of the new Owner at the time of continuation will be used in determining any future death benefits on this Contract. The new Owner may elect to continue this Contract only upon the death of the original Owner. The new Owner cannot change the election of any optional benefits in the Contract. Upon the new Owner's subsequent death, the entire interest of the Contract must be distributed immediately under option 1 or 2 as provided under DEATH OF OWNER BEFORE THE ANNUITY DATE. All other terms and conditions of the Contract remain unchanged. Signed for the Company at Los Angeles, California, to be effective as of the Contract Date. /s/ Christine A. Nixon /s/ Eli Broad - ---------------------- ------------- Christine A. Nixon Eli Broad Assistant Secretary President 1 EX-99.4(F) 7 a2026237zex-99_4f.txt EXHIBIT 99.4(F) ANCHOR NATIONAL LIFE INSURANCE COMPANY OPTIONAL INCOME BENEFIT (OIB) ENDORSEMENT This Endorsement is made a part of, and subject to, the other terms and conditions of the Contract to which it is attached. This Endorsement becomes effective on the Effective Date. All the terms have the same meanings as in the Contract except as defined below. SPECIFICATIONS CONTRACT NUMBER: GROWTH RATE: A1111111111 [3.25%] EFFECTIVE DATE: OIB CHARGE PERCENTAGE: JANUARY 5, 2001 [0.15%] ENDORSEMENT DATE: EARLIEST INCOME BENEFIT DATE: FEBRUARY 6, 2000 JANUARY 5, 2008 DEFINITIONS EFFECTIVE DATE The Effective Date of the OIB Endorsement is as shown above. If elected at Contract issue, the Effective Date and the Endorsement Date will be the same as the Contract Date. If elected after Contract issue, the Effective Date is the Contract anniversary immediately following the Endorsement Date. ENDORSEMENT DATE The Endorsement Date is the date that the OIB Endorsement was issued, as shown above. INCOME BENEFIT BASE The amount We use to determine the OIB, as discussed below. INCOME BENEFIT DATE The Contract anniversary date on which the OIB is calculated. The Income Benefit Date, which is selected by You, must be the [seventh] or later Contract anniversary following the Effective Date of this Endorsement. In order for the OIB to take effect, the Annuity Date You select must be within the 30 days following Your Income Benefit Date. The Income Benefit Date must be no later than the latest Annuity Date as discussed in the ANNUITY PROVISIONS of Your Contract. To arrange selection of an Income Benefit Date, contact Our Annuity Service Center. PROVISIONS OIB This Endorsement provides for guaranteed minimum annuity payments under selected Fixed Annuity Payment Options, which are provided for in Your Contract and specified in this Endorsement. We will only provide for the guaranteed minimum annuity payments under the OIB if You select an Annuity Date which is within 30 days following any Income Benefit Date, and Your entire Contract Value is to be distributed under one of the Fixed Annuity Payment Options described in this Endorsement. The Annuity Date, as defined in Your Contract, is the date selected by You on which Annuity Payments are to begin. 1 On the Annuity Date, the amount of the guaranteed Fixed Annuity payment is calculated by applying the Income Benefit Base as of the Income Benefit Date, as described below, reduced by: (a) any Partial Withdrawals of Contract Value (which include any charges associated with those withdrawals) since the Income Benefit Date; and (b) any Withdrawal Charges otherwise applicable to amounts in Your Contract, calculated as if You fully surrender Your Contract as of the Income Benefit Date; and (c) any applicable premium taxes, to the annuity rates set forth in this Endorsement. This amount is compared to the Fixed Annuity payment amount under the same Annuity Payment Option provided for in the ANNUITY PROVISIONS of Your Contract, which is calculated, based on Your Contract Value on the Annuity Date. We will pay whichever is greater. You may also select any other Annuity Payment Option as outlined in Your Contract to be applied to your actual Contract Value. However, We will not provide for guaranteed minimum annuity payments under this OIB. INCOME BENEFIT BASE On the Effective Date of this Endorsement, the Income Benefit Base is equal to the entire Contract Value on that date. If the OIB is elected at Contract issue, the Income Benefit Base on the Contract Date is the First Purchase Payment. For purposes of subsequent calculation of the Income Benefit Base, the Income Benefit Base is equal to (a) plus (b) less (c), where; (a) is the Income Benefit Base on the prior Contract anniversary (or the Contract Date if being calculated on the first Contract anniversary) accumulated at the Growth Rate indicated in the SPECIFICATIONS section of this Endorsement, and (b) is the sum of all Purchase Payments received after the prior Contract anniversary (or after the Contract Date if being calculated on the first Contract Anniversary) accumulated at the Growth Rate indicated in the SPECIFICATIONS section of this Endorsement, starting on the date each Purchase Payment is allocated to the Contract, and (c) is the sum of Income Benefit Base reductions made after the prior Contract anniversary (or after the Contract Date if being calculated on the first Contract anniversary) accumulated at the Growth Rate indicated in the SPECIFICATIONS section of this Endorsement, starting on the date each deduction occurs. An Income Benefit Base reduction is calculated on a pro rata basis to effectively reduce the Income Benefit Base in proportion to the actual reduction in Contract Value. The reduction is equal to the Income Benefit Base immediately prior to a Partial Withdrawal of Contract Value (which includes any charges associated with the withdrawal) multiplied by the percentage reduction in Contract Value resulting from the Partial Withdrawal of Contract Value. THE INCOME BENEFIT BASE IS USED SOLELY FOR THE PURPOSE OF CALCULATING THE OIB AND DOES NOT PROVIDE A CONTRACT VALUE OR GUARANTEE PERFORMANCE OF ANY INVESTMENT OPTION. GROWTH RATE The Growth Rate will be the rate shown in the SPECIFICATIONS section of this Endorsement through the Contract anniversary immediately following the Annuitant's 90th birthday. The Growth Rate is reduced to 0.00% on the Contract anniversary immediately following the Annuitant's 90th birthday. 2 OIB CHARGE This annual charge is to compensate Us for the risk assumed as a result of contractual obligations to provide the OIB. The OIB Charge Percentage will never be greater than the percentage shown on the SPECIFICATIONS section of this Endorsement. The OIB Charge equals the OIB Charge Percentage multiplied by the Income Benefit Base in effect on that Contract anniversary. The OIB Charge is deducted from the Contract Value annually, on each Contract anniversary. This charge is no longer deducted after the Annuity Date. Upon Total Withdrawal of the Contract Value, We will deduct the OIB Charge from the Contract Value. If the Total Withdrawal of the Contract Value is requested on any date other than the Contract anniversary, this charge will be calculated based on the Income Benefit Base immediately prior to the Total Withdrawal and will not be prorated. TERMINATION Once elected, You cannot terminate this OIB option. OIB FIXED ANNUITY PAYMENT OPTIONS OPTION 1 - LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 10 YEARS Payments are payable to the Payee during the lifetime of the Annuitant. If, at the death of the Annuitant, payments have been made for less than 10 years, the remaining guaranteed annuity payments will be continued to the Beneficiary. OPTION 2 - JOINT AND SURVIVOR LIFE ANNUITY WITH PAYMENTS GUARANTEED FOR 20 YEARS Payments are payable to the Payee during the lifetime of the Annuitant and during the lifetime of a designated second person. If, at the death of the survivor, payments have been made for less than 20 years, the remaining guaranteed annuity payments will be continued to the Beneficiary. 3 OIB FIXED ANNUITY PAYMENT OPTIONS TABLE BASIS OF COMPUTATION The actuarial basis for the Table of Annuity Rates is the 1983a Annuity Mortality Table with projection and a guaranteed interest rate of 2.25%. The mortality table is projected using Projection Scale G factors, assuming annuitization in the year 2000. The OIB Fixed Annuity Payment Options Table does not reflect any applicable premium tax. OPTION 1 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
AGE OF AGE OF ANNUITANT MALE FEMALE ANNUITANT MALE FEMALE 55 3.76 3.39 71 5.72 5.05 56 3.84 3.46 72 5.90 5.21 57 3.93 3.53 73 6.07 5.38 58 4.02 3.60 74 6.25 5.56 59 4.12 3.68 75 6.43 5.75 60 4.22 3.76 76 6.62 5.94 61 4.33 3.85 77 6.81 6.14 62 4.44 3.94 78 6.99 6.34 63 4.56 4.04 79 7.18 6.55 64 4.68 4.14 80 7.36 6.76 65 4.81 4.25 81 7.54 6.97 66 4.95 4.37 82 7.72 7.18 67 5.09 4.49 83 7.88 7.39 68 5.24 4.62 84 8.04 7.58 69 5.40 4.75 85 8.19 7.77 70 5.56 4.90
OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)
AGE OF MALE ANNUITANT AGE OF FEMALE ANNUITANT 55 60 65 70 75 80 85 55 3.11 3.27 3.40 3.51 3.58 3.62 3.63 60 3.20 3.40 3.60 3.76 3.88 3.94 3.97 65 3.26 3.51 3.77 4.00 4.18 4.28 4.32 70 3.30 3.58 3.89 4.19 4.44 4.58 4.65 75 3.33 3.63 3.97 4.32 4.62 4.81 4.90 80 3.34 3.65 4.01 4.39 4.72 4.94 5.04 85 3.34 3.65 4.02 4.41 4.76 4.99 5.10
4 All other terms and conditions of the Contract remain unchanged. Signed for the Company at Los Angeles, California. /s/ Susan L. Harris /s/ Eli Broad - ------------------- -------------- Susan L. Harris Eli Broad Secretary President OIB FIXED ANNUITY PAYMENT OPTIONS TABLE BASIS OF COMPUTATION The actuarial basis for the Table of Annuity Rates is the 1983a Annuity Mortality Table with projection and a guaranteed interest rate of 2.25%. The mortality table is projected using Projection Scale G factors, assuming annuitization in the year 2000, and assumes an equal distribution of males and females. The OIB Fixed Annuity Options Table does not reflect any applicable premium tax. OPTION 1 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) LIFE ANNUITY (W/120 PAYMENTS GUARANTEED)
AGE OF AGE OF ANNUITANT ANNUITANT 55 3.58 71 5.39 56 3.65 72 5.56 57 3.73 73 5.73 58 3.81 74 5.91 59 3.90 75 6.09 60 3.99 76 6.28 61 4.09 77 6.47 62 4.19 78 6.67 63 4.30 79 6.87 64 4.41 80 7.06 65 4.53 81 7.26 66 4.66 82 7.45 67 4.79 83 7.63 68 4.93 84 7.81 69 5.08 85 7.98 70 5.23
OPTION 2 - TABLE OF MONTHLY INSTALLMENTS PER $1,000. (MONTHLY INSTALLMENTS FOR AGES NOT SHOWN WILL BE FURNISHED UPON REQUEST) JOINT & 100% SURVIVOR LIFE ANNUITY (W/240 PAYMENTS GUARANTEED)
AGE OF ANNUITANT AGE OF ANNUITANT 55 60 65 70 75 80 85 55 3.11 3.23 3.33 3.41 3.45 3.48 3.49 60 3.23 3.40 3.55 3.67 3.75 3.79 3.81 65 3.33 3.55 3.77 3.95 4.07 4.14 4.17 70 3.41 3.67 3.95 4.19 4.38 4.49 4.53 75 3.45 3.75 4.07 4.38 4.62 4.76 4.83 80 3.48 3.79 4.14 4.49 4.76 4.94 5.02 85 3.49 3.81 4.17 4.53 4.83 5.02 5.10
4u EX-99.4(G) 8 a2026237zex-99_4g.txt EXHIBIT 99.4(G) ANCHOR NATIONAL LIFE INSURANCE COMPANY DEATH BENEFIT ENDORSEMENT This endorsement forms a part of the Contract to which it is attached. The AMOUNT OF DEATH BENEFIT under the DEATH PROVISIONS is modified to read as follows: Before You attain age 75 the amount of death benefit is equal to the greater of: 1. the Contract Value at the end of the NYSE business day during which We receive at Our Annuity Service Center the required Due Proof of Death documentation of the Owner and an election of the type of payment to be made; or 2. Purchase Payments, reduced for partial withdrawals in the same proportion that the Contract Value was reduced on the date of any such withdrawals, compounded until the date of death at 3% interest, plus any Purchase Payments, less partial withdrawals in the same proportion that the Contract Value was reduced on the date of any such withdrawals recorded after the date of death. After You attain age 75 the amount of death benefit is equal to the greater of: 1. the Contract Value at the end of the NYSE business day during which We receive, at Our Annuity Service Center, due proof of the Owner's death and an election of the type of payment to be made; or 2. Purchase Payments reduced for partial withdrawals in the same proportion that the Contract Value was reduced on the date of any such withdrawals, compounded until the attainment of age 75 at 3% interest, plus any Purchase Payments less partial withdrawals in the same proportion that the Contract Value was reduced on the date of any such withdrawals recorded after the attainment of age 75. All other terms and conditions of the Contract remain unchanged. Signed for the Company at Los Angeles, California, to be effective as of the Contract Date. /s/ Christine A. Nixon /s/ Eli Broad - ---------------------- -------------- Christine A. Nixon Eli Broad Assistant Secretary President 1 EX-99.4(H) 9 a2026237zex-99_4h.txt EXHIBIT 99.4(H)
ANCHOR NATIONAL NEW BUSINESS DOCUMENTS OVERNIGHT WITH CHECKS LIFE INSURANCE COMPANY WITH CHECKS BONPC 1 SunAmerica Center P.O. Box 100330 1111 Arroyo Parkway Los Angeles, CA 90067-6022 Pasadena, CA 91189-0001 Suite 150 WITHOUT CHECKS Lock Box 10330 P.O. Box 54299 Pasadena, CA 91105 Los Angeles, CA 90054-0299 - ----------------------------------------------------------------------------------------------------------------------------------- DEFERRED ANNUITY APPLICATION ANA-543 (6/00) DO NOT USE HIGHLIGHTER. Please print or type. - ----------------------------------------------------------------------------------------------------------------------------------- A. OWNER - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Last Name First Name Middle Initial - ----------------------------------------------------------------------------------------------------------------------------------- Street Address - ----------------------------------------------------------------------------------------------------------------------------------- City State Zip Code Mo. Day Year / / M / / F ( ) - ------------------------------------ -------------- --------------------- ------------------------ Date of Birth Sex SSN or TIN Telephone Number JOINT OWNER: (If Applicable) ----------------------------------------------------------------------------------------------------- Last Name First Name Middle Initial Mo. Day Year / / M / / F ( ) - ------------------------------------ -------------- ---------------- ----------------------- ------------------------ Date of Birth Sex SSN Relationship to Owner Telephone Number - ----------------------------------------------------------------------------------------------------------------------------------- B. ANNUITANT (Complete only if different from Owner) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- Last Name First Name Middle Initial - ----------------------------------------------------------------------------------------------------------------------------------- Street Address - ----------------------------------------------------------------------------------------------------------------------------------- City State Zip Code Mo. Day Year / / M / / F ( ) - ------------------------------------ -------------- ----------------- ------------------------------------ Date of Birth Sex SSN Telephone Number JOINT ANNUITANT (If Applicable): -------------------------------------------------------------------------------------------------- Last Name First Name Middle Initial Mo. Day Year / / M / / F - ------------------------------------ -------------- ----------------- ------------------------------------ Date of Birth Sex SSN Telephone Number - --------------------------------------------------------------------- ------------------------------------------------------------- C. REQUIRED ELECTION: Owners must choose a Withdrawal Charge D. OPTIONAL ENHANCED DEATH BENEFIT: The optional benefit may Period. Once elected, this cannot be changed. (Please see your only be chosen at the time of application. Optional death financial representative and the prospectus for information about benefits are offered as an enhancement to the standard Death these options.) Benefit described in the prospectus. If an optional death benefit is not chosen, the standard death benefit will be paid. Once elected, the option cannot be terminated or changed. - --------------------------------------------------------------------- ------------------------------------------------------------- I.WITHDRAWAL CHARGE PERIOD II. OPTIONAL ENHANCED DEATH BENEFIT / / Option 1: 7 Years (with DCA Fixed Accounts) / / [Purchase Payment Accumulation] / / Option 2: 9 Years (with Payment Enhancement Provisions) / / [Maximum Anniversary Value] - --------------------------------------------------------------------- ------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- E. BENEFICIARY (Please list additional beneficiaries, if any, in the special instructions section) - ----------------------------------------------------------------------------------------------------------------------------------- /X/ Primary --------------------------------------------------------------- ------------------ ------------- Last Name First Name M I Relationship Percentage / / Primary / / Contingent --------------------------------------------------------------- ------------------ ------------- Last Name First Name M I Relationship Percentage / / Primary / / Contingent --------------------------------------------------------------- ------------------ ------------- Last Name First Name M I Relationship Percentage ANA-543 (6/00) 1 - ----------------------------------------------------------------------------------------------------------------------------------- F. TYPE OF CONTRACT (If this is a transfer or 1035 Exchange, please complete form [SA2500RL] and submit it with this application) - ----------------------------------------------------------------------------------------------------------------------------------- / / NON-QUALIFIED PLAN (Minimum $5,000) / / QUALIFIED PLANS (MINIMUM $2,000) / / IRA (tax year _________) / / IRA TRANSFER / / IRA ROLLOVER / / ROTH IRA / / 401(k) / / KEOGH / / SEP / / 457 / / OTHER_______________ / / Check included with this application for $_______________________ - ----------------------------------------------------------------------------------------------------------------------------------- G. ANNUITY DATE: Date annuity payments ("income payments") begin. Must be at least 2 years after the Contract Date. Maximum annuitization age is the later of the Owner's age 90 or 10 years after Contract Date. NOTE: If left blank, the Annuity Date will default to the maximum for nonqualified and to 70 1/2 for qualified contracts. - ----------------------------------------------------------------------------------------------------------------------------------- Month Day Year - --------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- H. SPECIAL FEATURES (OPTIONAL) - ----------------------------------------------------------------------------------------------------------------------------------- / / SYSTEMATIC WITHDRAWAL: Include Form Number [SA-5550SW] with this application. / / PRINCIPAL ADVANTAGE: Check the appropriate fixed account below and specify the other allocations as percentages in section L. / / 1 Year Fixed / / 3 Year MVA Fixed / / 5 Year MVA Fixed / / 7 Year MVA Fixed / / 10 Year MVA Fixed / / AUTOMATIC ASSET REBALANCING: I request the accounts to be REBALANCED as designated in section L at the frequency initialed below: (Select only one) __________ Monthly ___________ Quarterly __________Semiannually ________Annually - ----------------------------------------------------------------------------------------------------------------------------------- I. TELEPHONE TRANSFERS AUTHORIZATION - ----------------------------------------------------------------------------------------------------------------------------------- I / / DO / / DO NOT authorize telephone transfers, subject to the conditions set forth below. If no election is made, the Company will assume that you do authorize telephone transfers. (North Dakota: If no election is made, the Company will assume you do NOT wish to authorize telephone transfers) I authorize the Company to accept telephone instructions for transfers in any amount among investment options from anyone providing proper identification subject to restrictions and limitations contained in the Contract and related prospectus, if any. I understand that I bear the risk of loss in the event of a telephone instruction not authorized by me. The company will not be responsible for any losses resulting from unauthorized transactions if it follows reasonable procedures designed to verify the identity of the requestor and therefore, the Company will record telephone conversations containing transaction instructions, request personal identification information before acting upon telephone instructions and send written confirmation statements of transactions to the address of record. - ----------------------------------------------------------------------------------------------------------------------------------- J. ADDITIONAL INSTRUCTIONS (Additional Beneficiaries, Transfer Company Information etc.) - ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- K. DISCLOSURE NOTICES - ----------------------------------------------------------------------------------------------------------------------------------- FRAUD WARNING: Any Person who with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement may be guilty of insurance fraud. FOR APPLICANTS IN MAINE AND PENNSYLVANIA: FRAUD WARNING: Any person, who knowingly and with intent to defraud any insurance company or other person, files an application for insurance containing any materially false information or conceals, for the purpose of misleading, information concerning any fact hereto commits a fraudulent act, which is a crime and subjects such person to criminal and civil penalties. FOR APPLICANTS IN FLORIDA: FRAUD WARNING: Any person who knowingly and with intent to injure, defraud, or deceive any insurer files a statement of claim or an application containing any false, incomplete, or misleading information is guilty of a felony of the third degree. FOR APPLICANTS IN ARIZONA: Upon your written request, we will provide you within a reasonable period of time, reasonable, factual information regarding the benefits and provisions of the annuity contract for which you are applying. If for any reason you are not satisfied with the contract, you may return the contract within ten days after you receive it. If the contract you are applying for is a variable annuity, you will receive an amount equal to the sum of (1) the difference between the premiums paid and the amounts allocated to any account under the contract and (2) the Contract Value on the date the returned contract is received by our company or agent. FOR APPLICANTS IN TEXAS: FRAUD WARNING: Any Person who with intent to defraud or knowing that he is facilitating a fraud against an insurer, submits an application or files a claim containing a false or deceptive statement may be guilty of fraud. ANA-543 (6/00) 2 Page 3 of 3 ANA-543 (6/00) - ----------------------------------------------------------------------------------------------------------------------------------- L. INVESTMENT & DCA INSTRUCTIONS: (Allocations must be expressed in whole percentages and total allocation must equal 100%) - ----------------------------------------------------------------------------------------------------------------------------------- PAYMENT DCA TARGET ALLOCATIONS ALLOCATIONS PORTFOLIO FIXED ACCOUNT OPTIONS STRATEGIES NON-MVA FIXED OPTION _________% ______% Growth Strategy _______% 1 yr. _________% ______% Moderate Growth Strategy _________% ______% Balanced Growth Strategy MVA FIXED OPTIONS _________% ______% Conservative Growth Strategy ________% 3 yr. ________% 5 yr PORTFOLIOS ________% 7 yr. _________% ______% Large Cap Growth Portfolio ________% 10 yr. _________% ______% Large Cap Composite Portfolio _________% ______% Large Cap Value Portfolio _________% ______% Mid Cap Growth Portfolio _________% ______% Mid Cap Value Portfolio DCA OPTIONS AND PROGRAM* *These DCA Options are only available if _________% ______% Small Cap Portfolio Option 1 (the 7 year withdrawal charge _________% ______% International Equity Portfolio ________% 6 Month DCA Account period) in Section C was selected. _________% ______% Diversified Equity Portfolio (Monthly DCA Only) The DCA Program will begin 30 days (if _________% ______% Cash Management Portfolio monthly) or 90 days (if quarterly) from the date of deposit. Please indicate the target account(s) in the spaces provided to the left. The total must equal 100%. The minimum transfer amount in $100. FOCUSED ________% 1 yr. DCA Account We reserve the right to adjust the PORTFOLIOS Frequency (Select one below) number of transfers in order to meet the _________% ______% Focus Growth Portfolio / / Monthly / / Quarterly minimum transfer amount. - -------------------------------------------------------------------------------------------------------------------- M. STATEMENT OF OWNER - -------------------------------------------------------------------------------------------------------------------- Will this Contract replace an existing life insurance or annuity contract. / / Yes / / No (If yes, please attached transfer forms, replacement forms and indicate the name and contract number of the issuing company below.) - -------------------------------------------------------------------------------------------------------------------- Company Name Contract Number I hereby represent my answers to the above questions to be correct and true to the best of my knowledge and belief and agree that this Deferred Annuity Application Form shall be a part of any Contract issued by the Company. I VERIFY MY UNDERSTANDING THAT THE VALUE OF PURCHASE PAYMENTS DIRECTED INTO THE VARIABLE INVESTMENT OPTIONS ARE VARIABLE AND NOT GUARANTEED AS TO DOLLAR AMOUNT. IF THE RETURN OF PURCHASE PAYMENTS IS REQUIRED UNDER THE RIGHT TO EXAMINE PROVISION OF THE CONTRACT, I UNDERSTAND THAT THE COMPANY RESERVES THE RIGHT TO ALLOCATE MY PURCHASE PAYMENT(S) AND ANY INITIAL PAYMENT ENHANCEMENT(S), IF APPLICABLE, TO THE CASH MANAGEMENT PORTFOLIO UNTIL THE END OF THE RIGHT TO EXAMINE PERIOD. I FURTHER UNDERSTAND THAT AT THE END OF THE RIGHT TO EXAMINE PERIOD, THE COMPANY WILL ALLOCATE MY FUNDS ACCORDING TO MY INVESTMENT INSTRUCTIONS. I UNDERSTAND THAT ALL PAYMENTS AND VALUES BASED ON THE MULTI-YEAR FIXED ACCOUNT OPTIONS ARE SUBJECT TO A MARKET VALUE ADJUSTMENT FORMULA, WHICH MAY RESULT IN UPWARD AND DOWNWARD ADJUSTMENTS IN AMOUNTS AVAILABLE FOR WITHDRAWAL. I UNDERSTAND THE TERMS OF THE WITHDRAWAL CHARGE PERIOD THAT I SELECTED. I ACKNOWLEDGE RECEIPT OF THE CURRENT PROSPECTUSES FOR [SEASONS SELECT], INCLUDING THE [SEASONS SERIES TRUST] PROSPECTUSES. I HAVE READ THEM CAREFULLY AND UNDERSTAND THEIR CONTENTS. I FURTHER VERIFY MY UNDERSTANDING THAT THIS VARIABLE ANNUITY IS SUITABLE TO MY OBJECTIVES AND NEEDS. Signed at ----------------------------------------------------------------- -------------------- City State Date - ---------------------------------------------- ----------------------------------------------- Owner's Signature Joint Owner's Signature (If Applicable) - ---------------------------------------------- Registered Representative's Signature - ----------------------------------------------------------------------------------------------------------------------------------- N. LICENSED/REGISTERED REPRESENTATIVE INFORMATION - ----------------------------------------------------------------------------------------------------------------------------------- Will this Contract replace in whole or in part any existing life insurance or annuity contract? / / Yes / / No - -------------------------------------------------------- ------------------------------ Printed Name of Registered Representative Social Security Number - ----------------------------------------------------------------------------------------------- -------------- Representative's Street Address City State Zip ( ) - ------------------------------------------------ -------------------------------- ------------------------------- Broker/Dealer Firm Name Representative's Phone Number Agent's License ID Number / / Option 1 / / Option 2 / / Option 3 / / Option 4 (Check your home office for availability) - ----------------------------------------------------------------------------------------------------------------------------------- FOR OFFICE USE ONLY - -----------------------------------------------------------------------------------------------------------------------------------
ANA-543 (6/00) 3 EX-99.23(A) 10 a2026237zex-99_23a.txt EXHIBIT 99.23(A) CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Prospectus constituting part of this Registration Statement on Form S-3 of our report dated January 31, 2000 appearing on page F-2 of Anchor National Life Insurance Company's Annual Report on Form 10-K for the year ended December 31, 1999. We also consent to the reference to us under the heading "Independent Accountants" in such Prospectus. PricewaterhouseCoopers LLP Woodland Hills, California September 25, 2000 -----END PRIVACY-ENHANCED MESSAGE-----