0000950148-01-502041.txt : 20011029
0000950148-01-502041.hdr.sgml : 20011029
ACCESSION NUMBER: 0000950148-01-502041
CONFORMED SUBMISSION TYPE: 424B3
PUBLIC DOCUMENT COUNT: 1
FILED AS OF DATE: 20011024
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: 424B3
SEC ACT: 1933 Act
SEC FILE NUMBER: 033-87864
FILM NUMBER: 1765079
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
424B3
1
v75680b3e424b3.txt
424(B)(3)
As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 33-87864.
ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE SEPARATE ACCOUNT
(PORTION RELATING TO THE POLARIS PLATINUM VARIABLE ANNUITY)
---------------------------------------------
SUPPLEMENT TO THE POLARIS PLATINUM PROSPECTUS
(FEATURING THE PRINCIPAL REWARDS PROGRAM)
DATED OCTOBER 15, 2001
THE FOLLOWING IS INSERTED IN THE DEATH BENEFIT SECTION PRIOR TO THE SECTION
TITLED ESTATEPLUS ON PAGE 20 OF THE PROSPECTUS:
The information below describes the death benefits on contracts issued on or
after October 24, 2001:
The term Net Purchase Payment is used frequently in explaining these death
benefit options. Net Purchase Payments is an on-going calculation. It does not
represent a contract value.
We define Net Purchase Payments as Purchase Payments less an Adjustment for each
withdrawal. If you have not taken any withdrawals from your contract, Net
Purchase Payments equals total purchase payments into your contract. To
calculate the Adjustment amount for the first withdrawal made under the
contract, we determine the percentage by which the withdrawal reduced the
contract value. For example, a $10,000 withdrawal from a $100,000 contract is a
10% reduction in value. This percentage is calculated by dividing the amount of
each withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking the withdrawal. The resulting
percentage is then multiplied by the amount of the total Purchase Payments and
subtracted from the amount of the total Purchase Payments on deposit at the time
of the withdrawal. The resulting amount is the initial Net Purchase Payment.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, we
determine the percentage by which the contract value is reduced by taking the
amount of the withdrawal in relation to the contract value immediately before
taking the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal, by this percentage. We subtract that result
from the Net Purchase Payment calculation as determined prior to the withdrawal
to arrive at all subsequent Net Purchase Payment calculations.
OPTION 1 -- PURCHASE PAYMENT ACCUMULATION OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments compounded at a 4% annual growth rate until
the date of death (3% growth rate if age 70 or older at the time
of contract issue) plus any Purchase Payments recorded after the
date of death; and reduced for any withdrawals in the same
proportion that the withdrawal reduced contract value on the date
of the withdrawal; or
3. the contract value on the seventh contract anniversary, plus any
Purchase Payments since the seventh contract anniversary; and
reduced for any withdrawals since the seventh contract
anniversary in the same proportion that each withdrawal reduced
the contract value on the date of the withdrawal, all compounded
at a 4% annual growth rate until the date of death (3% growth
rate if age 70 or older at the time of contract issue) plus any
purchase payments recorded after the date of death; and reduced
for each withdrawals recorded after the date of death in the same
proportion that each withdrawal reduced the contract value on the
date of the withdrawal.
Date: October 22, 2001
Please keep this Supplement with your prospectus.
1
OPTION 2 -- MAXIMUM ANNIVERSARY OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments; or
3. the maximum anniversary value on any contract anniversary prior
to your 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments since
that contract anniversary; and reduced for any withdrawals since
the contract anniversary in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal.
If you are age 90 or older at the time of death and selected the Option 2 death
benefit, the death benefit will be equal to contract value at the time we
receive all required paperwork and satisfactory proof of death. Accordingly, you
do not get the advantage of Option 2 if:
- you are age 81 or older at the time of contract issue; or
- you are age 90 or older at the time of your death.
THE FOLLOWING REPLACES ALL 3 PARAGRAPHS UNDER THE HEADING INSURANCE CHARGES ON
PAGE 22 OF THE PROSPECTUS:
The Company deducts a mortality and expense risk charge in the amount of 1.52%,
annually of the value of your contract invested in the Variable Portfolios. We
deduct the charge daily. This charge compensates the Company for the mortality
and expense risk and the costs of contract distribution assumed by the Company.
Generally, the mortality risks assumed by the Company arise from its contractual
obligations to make income payments after the Annuity Date and to provide a
death benefit. The expense risk assumed by the Company is that the costs of
administering the contracts and the Separate Account will exceed the amount
received from the administrative fees and charges assessed under the contract.
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.
THE FOLLOWING IS INSERTED IN APPENDIX C -- DEATH BENEFITS FOLLOWING SPOUSAL
CONTINUATION DIRECTLY ABOVE SECTION B TITLED THE ESTATEPLUS BENEFIT PAYABLE UPON
THE CONTINUING SPOUSE'S DEATH:
The term Continuation Net Purchase Payments is used frequently to describe the
death benefits payable to the beneficiary of the Continuing Spouse for contracts
issued on or after October 24, 2001. We define Continuation Net Purchase
Payments as Net Purchase Payments made on and/or after the Continuation Date.
For the purpose of calculating Continuation Net Purchase Payments, the amount
that equals the contract value on the Continuation Date, including the
Continuation Contribution is considered a Purchase Payment. If the Continuing
Spouse makes no additional Purchase Payments or withdrawals, Continuation Net
Purchase Payments equals the contract value on the Continuation Date, including
the Continuation Contribution.
Date: October 22, 2001
Please keep this Supplement with your prospectus.
2
The following describes the death benefit options following spousal continuation
for contracts issued on or after October 24, 2001:
1. Purchase Payment Accumulation Option
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments compounded to the date of
death at a 4% annual growth rate, (3% growth rate if the
Continuing Spouse was age 70 or older on the Continuation Date)
plus any Purchase Payments recorded after the date of death; and
reduced by any withdrawals recorded after the date of death in
the same proportion that the withdrawal reduced the contract
value on the date of each withdrawal; or
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary and reduced for
any withdrawals recorded after the seventh contract anniversary
in the same proportion that the withdrawal reduced the contract
value on the date of the withdrawal, all compounded at a 4%
annual growth rate until the date of death (3% annual growth rate
if the Continuing Spouse is age 70 or older on the Continuation
Date) plus any Purchase Payments; and reduced for any withdrawals
recorded after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greater of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Net Purchase Payments made from the original contract issue date
compounded to the date of death at a 4% annual growth rate, (3%
growth rate if the Continuing Spouse was age 70 or older on the
original contract issue date) plus any Purchase Payments recorded
after the date of death; and reduced for any withdrawals recorded
after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal; or
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary; and reduced for
any withdrawals since the seventh contract anniversary in the
same proportion that each withdrawal reduced the contract value
on the date of the withdrawal, all compounded at a 4% annual
growth rate until the date of death (3% annual growth rate if the
Continuing Spouse is age 70 or older on the contract issue date)
plus any Purchase Payments; and reduced for any withdrawals
recorded after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
2. Maximum Anniversary Value Option -- if the continuing spouse is below
age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments; or
Date: October 22, 2001
Please keep this Supplement with your prospectus.
3
c. The maximum anniversary value on any contract anniversary
occurring after the Continuation Date and prior to the Continuing
Spouse's 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments made
since that contract anniversary; and reduced for any withdrawals
recorded since the contract anniversary in the same proportion
that each withdrawal reduced the contract value on the date of
the withdrawal. Contract anniversary is defined as any
anniversary following the full 12 month period after the original
contract issue date.
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Net Purchase Payments received since the original issue date; or
c. The maximum anniversary value on any contract anniversary from
the original contract issue date prior to the Continuing Spouse's
81st birthday. The anniversary value equals the contract value on
a contract anniversary plus any Purchase Payments since that
contract anniversary; and reduced for any withdrawals since the
contract anniversary in the same proportion that the withdrawal
reduced each contract value on the date of the withdrawal.
Contract anniversary is defined as the full 12 month period after
the original contract issue date.
If the Continuing Spouse is age 90 or older at the time of death, under the
Maximum Anniversary death benefit, their beneficiary will receive only the
contract value at the time we receive all required paperwork and satisfactory
proof of death.
Date: October 22, 2001
Please keep this Supplement with your prospectus.
4
As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 33-87864
ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE SEPARATE ACCOUNT
---------------------------------------------
SUPPLEMENT TO THE POLARIS PLATINUM PROSPECTUS
(FEATURING THE PRINCIPAL REWARDS PROGRAM)
DATED OCTOBER 15, 2001
THE FOLLOWING IS INSERTED IN THE DEATH BENEFIT SECTION PRIOR TO THE SECTION
TITLED ESTATEPLUS ON PAGE 18 OF THE PROSPECTUS:
The information below describes the death benefits on contracts issued on or
after October 24, 2001:
The term Net Purchase Payment is used frequently in explaining these death
benefit options. Net Purchase Payments is an on-going calculation. It does not
represent a contract value.
We define Net Purchase Payments as Purchase Payments less an Adjustment for each
withdrawal. If you have not taken any withdrawals from your contract, Net
Purchase Payments equals total purchase payments into your contract. To
calculate the Adjustment amount for the first withdrawal made under the
contract, we determine the percentage by which the withdrawal reduced the
contract value. For example, a $10,000 withdrawal from a $100,000 contract is a
10% reduction in value. This percentage is calculated by dividing the amount of
each withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking the withdrawal. The resulting
percentage is then multiplied by the amount of the total Purchase Payments and
subtracted from the amount of the total Purchase Payments on deposit at the time
of the withdrawal. The resulting amount is the initial Net Purchase Payment.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, we
determine the percentage by which the contract value is reduced by taking the
amount of the withdrawal in relation to the contract value immediately before
taking the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal, by this percentage. We subtract that result
from the Net Purchase Payment calculation as determined prior to the withdrawal
to arrive at all subsequent Net Purchase Payment calculations.
OPTION 1 -- PURCHASE PAYMENT ACCUMULATION OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments compounded at a 4% annual growth rate until
the date of death (3% growth rate if age 70 or older at the time
of contract issue) plus any Purchase Payments recorded after the
date of death; and reduced for any withdrawals in the same
proportion that the withdrawal reduced contract value on the date
of the withdrawal; or
3. the contract value on the seventh contract anniversary, plus any
Purchase Payments since the seventh contract anniversary; and
reduced for any withdrawals since the seventh contract
anniversary in the same proportion that each withdrawal reduced
the contract value on the date of the withdrawal, all compounded
at a 4% annual growth rate until the date of death (3% growth
rate if age 70 or older at the time of contract issue) plus any
purchase payments recorded after the date of death; and reduced
for each withdrawals recorded after the date of death in the same
proportion that each withdrawal reduced the contract value on the
date of the withdrawal.
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
1
OPTION 2 -- MAXIMUM ANNIVERSARY OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments; or
3. the maximum anniversary value on any contract anniversary prior
to your 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments since
that contract anniversary; and reduced for any withdrawals since
the contract anniversary in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal.
If you are age 90 or older at the time of death and selected the Option 2 death
benefit, the death benefit will be equal to contract value at the time we
receive all required paperwork and satisfactory proof of death. Accordingly, you
do not get the advantage of Option 2 if:
- you are age 81 or older at the time of contract issue; or
- you are age 90 or older at the time of your death.
THE FOLLOWING REPLACES ALL 3 PARAGRAPHS UNDER THE HEADING INSURANCE CHARGES ON
PAGE 19 OF THE PROSPECTUS:
The Company deducts a mortality and expense risk charge in the amount of 1.52%,
annually of the value of your contract invested in the Variable Portfolios. We
deduct the charge daily. This charge compensates the Company for the mortality
and expense risk and the costs of contract distribution assumed by the Company.
Generally, the mortality risks assumed by the Company arise from its contractual
obligations to make income payments after the Annuity Date and to provide a
death benefit. The expense risk assumed by the Company is that the costs of
administering the contracts and the Separate Account will exceed the amount
received from the administrative fees and charges assessed under the contract.
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.
THE FOLLOWING IS INSERTED IN APPENDIX C -- DEATH BENEFITS FOLLOWING SPOUSAL
CONTINUATION DIRECTLY ABOVE SECTION B TITLED THE ESTATEPLUS BENEFIT PAYABLE UPON
THE CONTINUING SPOUSE'S DEATH:
The term Continuation Net Purchase Payments is used frequently to describe the
death benefits payable to the beneficiary of the Continuing Spouse for contracts
issued on or after October 24, 2001. We define Continuation Net Purchase
Payments as Net Purchase Payments made on and/or after the Continuation Date.
For the purpose of calculating Continuation Net Purchase Payments, the amount
that equals the contract value on the Continuation Date, including the
Continuation Contribution is considered a Purchase Payment. If the Continuing
Spouse makes no additional Purchase Payments or withdrawals, Continuation Net
Purchase Payments equals the contract value on the Continuation Date, including
the Continuation Contribution.
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
2
The following describes the death benefit options following spousal continuation
for contracts issued on or after October 24, 2001:
1. Purchase Payment Accumulation Option
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments compounded to the date of
death at a 4% annual growth rate, (3% growth rate if the
Continuing Spouse was age 70 or older on the Continuation Date)
plus any Purchase Payments recorded after the date of death; and
reduced by any withdrawals recorded after the date of death in
the same proportion that the withdrawal reduced the contract
value on the date of each withdrawal; or
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary and reduced for
any withdrawals recorded after the seventh contract anniversary
in the same proportion that the withdrawal reduced the contract
value on the date of the withdrawal, all compounded at a 4%
annual growth rate until the date of death (3% annual growth rate
if the Continuing Spouse is age 70 or older on the Continuation
Date) plus any Purchase Payments; and reduced for any withdrawals
recorded after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greater of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Net Purchase Payments made from the original contract issue date
compounded to the date of death at a 4% annual growth rate, (3%
growth rate if the Continuing Spouse was age 70 or older on the
original contract issue date) plus any Purchase Payments recorded
after the date of death; and reduced for any withdrawals recorded
after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal; or
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary; and reduced for
any withdrawals since the seventh contract anniversary in the
same proportion that each withdrawal reduced the contract value
on the date of the withdrawal, all compounded at a 4% annual
growth rate until the date of death (3% annual growth rate if the
Continuing Spouse is age 70 or older on the contract issue date)
plus any Purchase Payments; and reduced for any withdrawals
recorded after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
2. Maximum Anniversary Value Option -- if the continuing spouse is below
age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
3
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments; or
c. The maximum anniversary value on any contract anniversary
occurring after the Continuation Date and prior to the Continuing
Spouse's 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments made
since that contract anniversary; and reduced for any withdrawals
recorded since the contract anniversary in the same proportion
that each withdrawal reduced the contract value on the date of
the withdrawal. Contract anniversary is defined as any
anniversary following the full 12 month period after the original
contract issue date.
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Net Purchase Payments received since the original issue date; or
c. The maximum anniversary value on any contract anniversary from
the original contract issue date prior to the Continuing Spouse's
81st birthday. The anniversary value equals the contract value on
a contract anniversary plus any Purchase Payments since that
contract anniversary; and reduced for any withdrawals since the
contract anniversary in the same proportion that the withdrawal
reduced each contract value on the date of the withdrawal.
Contract anniversary is defined as the full 12 month period after
the original contract issue date.
If the Continuing Spouse is age 90 or older at the time of death, under the
Maximum Anniversary death benefit, their beneficiary will receive only the
contract value at the time we receive all required paperwork and satisfactory
proof of death.
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
4
As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 33-87864
ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE SEPARATE ACCOUNT
(PORTION RELATING TO THE POLARIS PLATINUM VARIABLE ANNUITY)
---------------------------------------------
SUPPLEMENT TO THE POLARIS PLATINUM PROSPECTUS
DATED OCTOBER 15, 2001
THE FOLLOWING IS INSERTED IN THE DEATH BENEFIT SECTION PRIOR TO THE SECTION
TITLED ESTATEPLUS ON PAGE 17 OF THE PROSPECTUS:
The information below describes the death benefits on contracts issued on or
after October 24, 2001:
The term Net Purchase Payment is used frequently in explaining these death
benefit options. Net Purchase Payments is an on-going calculation. It does not
represent a contract value.
We define Net Purchase Payments as Purchase Payments less an Adjustment for each
withdrawal. If you have not taken any withdrawals from your contract, Net
Purchase Payments equals total purchase payments into your contract. To
calculate the Adjustment amount for the first withdrawal made under the
contract, we determine the percentage by which the withdrawal reduced the
contract value. For example, a $10,000 withdrawal from a $100,000 contract is a
10% reduction in value. This percentage is calculated by dividing the amount of
each withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking the withdrawal. The resulting
percentage is then multiplied by the amount of the total Purchase Payments and
subtracted from the amount of the total Purchase Payments on deposit at the time
of the withdrawal. The resulting amount is the initial Net Purchase Payment.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, we
determine the percentage by which the contract value is reduced by taking the
amount of the withdrawal in relation to the contract value immediately before
taking the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal, by this percentage. We subtract that result
from the Net Purchase Payment calculation as determined prior to the withdrawal
to arrive at all subsequent Net Purchase Payment calculations.
OPTION 1 -- PURCHASE PAYMENT ACCUMULATION OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments compounded at a 4% annual growth rate
until the date of death (3% growth rate if age 70 or older at
the time of contract issue) plus any Purchase Payments recorded
after the date of death; and reduced for any withdrawals in the
same proportion that the withdrawal reduced contract value on
the date of the withdrawal; or
3. the contract value on the seventh contract anniversary, plus any
Purchase Payments since the seventh contract anniversary; and
reduced for any withdrawals since the seventh contract
anniversary in the same proportion that each withdrawal reduced
the contract value on the date of the withdrawal, all compounded
at a 4% annual growth rate until the date of death (3% growth
rate if age 70 or older at the time of contract issue) plus any
purchase payments recorded after the date and of death; and
reduced for each withdrawals recorded after the date of death in
the same proportion that each withdrawal reduced the contract
value on the date of the withdrawal.
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
1
OPTION 2 -- MAXIMUM ANNIVERSARY OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments; or
3. the maximum anniversary value on any contract anniversary prior
to your 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments since
that contract anniversary; and reduced for any withdrawals since
the contract anniversary in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal.
If you are age 90 or older at the time of death and selected the Option 2 death
benefit, the death benefit will be equal to contract value at the time we
receive all required paperwork and satisfactory proof of death. Accordingly, you
do not get the advantage of Option 2 if:
- you are age 81 or older at the time of contract issue; or
- you are age 90 or older at the time of your death.
-
THE FOLLOWING REPLACES ALL 3 PARAGRAPHS UNDER THE HEADING INSURANCE CHARGES ON
PAGE 18 OF THE PROSPECTUS:
The Company deducts a mortality and expense risk charge in the amount of 1.52%,
annually of the value of your contract invested in the Variable Portfolios. We
deduct the charge daily. This charge compensates the Company for the mortality
and expense risk and the costs of contract distribution assumed by the Company.
Generally, the mortality risks assumed by the Company arise from its contractual
obligations to make income payments after the Annuity Date and to provide a
death benefit. The expense risk assumed by the Company is that the costs of
administering the contracts and the Separate Account will exceed the amount
received from the administrative fees and charges assessed under the contract.
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.
THE FOLLOWING IS INSERTED IN APPENDIX B -- DEATH BENEFITS FOLLOWING SPOUSAL
CONTINUATION DIRECTLY ABOVE SECTION B TITLED THE ESTATEPLUS BENEFIT PAYABLE UPON
THE CONTINUING SPOUSE'S DEATH:
The term Continuation Net Purchase Payments is used frequently to describe the
death benefits payable to the beneficiary of the Continuing Spouse for contracts
issued on or after October 24, 2001. We define Continuation Net Purchase
Payments as Net Purchase Payments made on and/or after the Continuation Date.
For the purpose of calculating Continuation Net Purchase Payments, the amount
that equals the contract value on the Continuation Date, including the
Continuation Contribution is considered a Purchase Payment. If the Continuing
Spouse makes no additional Purchase Payments or withdrawals, Continuation Net
Purchase Payments equals the contract value on the Continuation Date, including
the Continuation Contribution.
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
2
The following describes the death benefit options following spousal continuation
for contracts issued on or after October 24, 2001:
1. Purchase Payment Accumulation Option
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
b. Continuation Net Purchase Payments compounded to the date of
death at a 4% annual growth rate, (3% growth rate if the
Continuing Spouse was age 70 or older on the Continuation
Date) plus any Purchase Payments recorded after the date of
death; and reduced by any withdrawals recorded after the date
of death in the same proportion that the withdrawal reduced
the contract value on the date of each withdrawal; or
c. The contract value on the seventh contract anniversary
following the original issue date of the contract, plus any
Purchase Payments since the seventh contract anniversary and
reduced for any withdrawals recorded after the seventh
contract anniversary in the same proportion that the
withdrawal reduced the contract value on the date of the
withdrawal, all compounded at a 4% annual growth rate until
the date of death (3% annual growth rate if the Continuing
Spouse is age 70 or older on the Continuation Date) plus any
Purchase Payments; and reduced for any withdrawals recorded
after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greater of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
b. Net Purchase Payments made from the original contract issue
date compounded to the date of death at a 4% annual growth
rate, (3% growth rate if the Continuing Spouse was age 70 or
older on the original contract issue date) plus any Purchase
Payments recorded after the date of death; and reduced for any
withdrawals recorded after the date of death in the same
proportion that each withdrawal reduced the contract value on
the date of the withdrawal; or
c. The contract value on the seventh contract anniversary
following the original issue date of the contract, plus any
Purchase Payments since the seventh contract anniversary; and
reduced for any withdrawals since the seventh contract
anniversary in the same proportion that each withdrawal
reduced the contract value on the date of the withdrawal, all
compounded at a 4% annual growth rate until the date of death
(3% annual growth rate if the Continuing Spouse is age 70 or
older on the contract issue date) plus any Purchase Payments;
and reduced for any withdrawals recorded after the date of
death in the same proportion that each withdrawal reduced the
contract value on the date of the withdrawal
2. Maximum Anniversary Value Option -- if the continuing spouse is
below age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
3
b. Continuation Net Purchase Payments; or
c. The maximum anniversary value on any contract anniversary
occurring after the Continuation Date and prior to the
Continuing Spouse's 81st birthday. The anniversary value
equals the contract value on a contract anniversary plus any
Purchase Payments made since that contract anniversary; and
reduced for any withdrawals recorded since the contract
anniversary in the same proportion that each withdrawal
reduced the contract value on the date of the withdrawal.
Contract anniversary is defined as any anniversary following
the full 12 month period after the original contract issue
date.
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
b. Net Purchase Payments received since the original issue date;
or
c. The maximum anniversary value on any contract anniversary from
the original contract issue date prior to the Continuing
Spouse's 81st birthday. The anniversary value equals the
contract value on a contract anniversary plus any Purchase
Payments since that contract anniversary; and reduced for any
withdrawals since the contract anniversary in the same
proportion that the withdrawal reduced each contract value on
the date of the withdrawal. Contract anniversary is defined as
the full 12 month period after the original contract issue
date.
If the Continuing Spouse is age 90 or older at the time of death, under the
Maximum Anniversary death benefit, their beneficiary will receive only the
contract value at the time we receive all required paperwork and satisfactory
proof of death.
Date: October 22, 2001
Please keep this Supplement with your Prospectus.
4
As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 33-87864
ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE SEPARATE ACCOUNT
SUPPLEMENT TO THE
POLARIS PROTECTOR VARIABLE ANNUITY
FEATURING PRINCIPAL REWARDS
PROSPECTUS DATED JULY 9, 2001
THE FOLLOWING INFORMATION REPLACES ALL PREVIOUS SUPPLEMENTS TO THE PROSPECTUS
DATED JULY 9, 2001.
THE DATE OF THE PROSPECTUS IS CHANGED TO OCTOBER 15, 2001.
THE BULLET POINT FOLLOWING "MANAGED BY WM ADVISORS, INC." ON THE FIRST PAGE OF
THE PROSPECTUS AFTER THE SUBHEADING "BALANCED" IS REPLACED BY THE FOLLOWING:
- Asset Allocation Portfolio SAST
THE FOLLOWING REPLACES THE FEE TABLE AND FOOTNOTES FOR THE SUNAMERICA SERIES
TRUST ON PAGE 5 OF THE PROSPECTUS:
SunAmerica Series Trust
(as a percentage of average net assets after reimbursement or waiver of expenses
for the Trust's fiscal year ended January 31, 2001)
MANAGEMENT SERVICE (12b-1) OTHER TOTAL ANNUAL
PORTFOLIO FEE FEE(7) EXPENSES EXPENSES
------------------------------- ---------------- --------------------- --------------------- -------------------
Aggressive Growth 0.66% 0.15% 0.04% 0.85%
------------------------------- ---------------- --------------------- --------------------- -------------------
Alliance Growth 0.60% 0.15% 0.04% 0.79%
------------------------------- ---------------- --------------------- --------------------- -------------------
Blue Chip Growth(1,4) 0.70% 0.15% 0.15% 1.00%
------------------------------- ---------------- --------------------- --------------------- -------------------
Cash Management(5) 0.49% 0.15% 0.03% 0.67%
------------------------------- ---------------- --------------------- --------------------- -------------------
Corporate Bond 0.62% 0.15% 0.07% 0.84%
------------------------------- ---------------- --------------------- --------------------- -------------------
Davis Venture Value 0.71% 0.15% 0.04% 0.90%
------------------------------- ---------------- --------------------- --------------------- -------------------
"Dogs" of Wall Street 0.60% 0.15% 0.12% 0.87%
------------------------------- ---------------- --------------------- --------------------- -------------------
Emerging Markets(2) 1.25% 0.15% 0.32% 1.72%
------------------------------- ---------------- --------------------- --------------------- -------------------
Federated Value 0.70% 0.15% 0.06% 0.91%
------------------------------- ---------------- --------------------- --------------------- -------------------
Global Bond 0.69% 0.15% 0.12% 0.96%
------------------------------- ---------------- --------------------- --------------------- -------------------
Global Equities 0.70% 0.15% 0.14% 0.99%
------------------------------- ---------------- --------------------- --------------------- -------------------
Goldman Sachs Research(1,3,4) 1.20% 0.15% 0.15% 1.50%
------------------------------- ---------------- --------------------- --------------------- -------------------
Growth-Income 0.53% 0.15% 0.04% 0.72%
------------------------------- ---------------- --------------------- --------------------- -------------------
Growth Opportunities 0.75% 0.15% 0.25% 1.15%
------------------------------- ---------------- --------------------- --------------------- -------------------
High-Yield Bond 0.63% 0.15% 0.08% 0.86%
------------------------------- ---------------- --------------------- --------------------- -------------------
International Diversified 1.00% 0.15% 0.21% 1.36%
Equities
------------------------------- ---------------- --------------------- --------------------- -------------------
International Growth and 0.95% 0.15% 0.23% 1.33%
Income
------------------------------- ---------------- --------------------- --------------------- -------------------
Marsico Growth 0.85% 0.15% 0.15% 1.15%
------------------------------- ---------------- --------------------- --------------------- -------------------
MFS Growth and Income 0.70% 0.15% 0.06% 0.91%
------------------------------- ---------------- --------------------- --------------------- -------------------
MFS Mid-Cap Growth(1,2) 0.75% 0.15% 0.07% 0.97%
------------------------------- ---------------- --------------------- --------------------- -------------------
MFS Total Return(2) 0.66% 0.15% 0.08% 0.89%
------------------------------- ---------------- --------------------- --------------------- -------------------
Putnam Growth 0.75% 0.15% 0.04% 0.94%
------------------------------- ---------------- --------------------- --------------------- -------------------
Real Estate 0.80% 0.15% 0.16% 1.11%
------------------------------- ---------------- --------------------- --------------------- -------------------
SunAmerica Balanced 0.59% 0.15% 0.05% 0.79%
------------------------------- ---------------- --------------------- --------------------- -------------------
Technology(4) 1.20% 0.15% 0.29% 1.64%
------------------------------- ---------------- --------------------- --------------------- -------------------
Telecom Utility(2,6) 0.75% 0.15% 0.09% 0.99%
------------------------------- ---------------- --------------------- --------------------- -------------------
Worldwide High Income 1.00% 0.15% 0.10% 1.25%
=============================== ================ ===================== ===================== ===================
(1) For this portfolio, the advisor, SunAmerica Asset Management Corp., has
voluntarily agreed to waive fees or expenses, if necessary, to keep
operating expenses at or below established maximum amounts. All waivers or
reimbursements may be terminated at any time. Only certain portfolios
relied on these waivers and/or reimbursements during this fiscal year as
follows: Absent fee waivers or reimbursement of expenses by the adviser or
custody credits, you would have incurred the following expenses during the
last fiscal year; Blue Chip Growth 1.96%, Goldman Sachs Research 1.78%;
Growth Opportunities 1.41%;
Dated: October 22, 2001
Please keep this supplement with your prospectus.
1
and Marsico Growth 4.88%. Absent recoupment of expenses by the adviser,
the Total Annual Expenses during the last fiscal year for the Emerging
Markets Portfolio would have been 1.68%. For MFS Mid-Cap Growth Portfolio,
the adviser recouped prior year expense reimbursements that were
mathematically insignificant, resulting in the expense ratio before and
after recoupment remaining at 0.97%.
(2) Gross of custody credits of 0.01%.
(3) The ratio reflects an expense cap of 1.50% and 1.15% for Goldman Sachs
Research and Marsico Growth, respectively, which is net of custody credits
of 0.01% and 0.44% and respectively, or waivers/reimbursements if
applicable.
(4) Annualized.
(5) Formerly managed by SunAmerica Asset Management Corp.
(6) Prior to July 5, 2000, the Telecom Utility Portfolio was named Utility
Portfolio. The name change will not result in any modifications to the
portfolio's principal investment goal or fundamental investment policies.
(7) The Board of Trustees adopted a 12(b)(1) Plan with respect to the
SunAmerica Series Trust on May 21, 2001. Although this Plan was not in
place at the fiscal year end shown here, the 0.15% service fee is shown in
these expense numbers.
THE FOLLOWING REPLACES FOOTNOTE 2 ON PAGE 11 OF THE PROSPECTUS UNDER THE HEADING
"EXPLANATION OF FEE TABLES AND EXAMPLES":
2. For certain Variable Portfolios, the adviser, SunAmerica Asset
Management Corp., has voluntarily agreed to waive fees or reimburse
certain expenses, if necessary, to keep annual operating expenses at or
below the lesser of the maximum allowed by any applicable state expense
limitations or the following percentages of each Variable Portfolio's
average net assets: Blue Chip Growth 1.00%; Emerging Markets 2.05%
(recouping prior expense reimbursements); Goldman Sachs Research 1.50%;
Growth Opportunities 1.15%; Marsico Growth 1.15%; MFS Mid-Cap Growth 1.30%
(recouping prior expense reimbursements); Technology 1.70%. The adviser
also may voluntarily waive or reimburse additional amounts to increase a
Variable Portfolio's investment return. All waivers and/or reimbursements
may be terminated at any time. Furthermore, the adviser may recoup any
waivers or reimbursements within two years after such waivers or
reimbursements are granted, provided that the Variable Portfolio is able
to make such payment and remain in compliance with the foregoing expense
limitations.
THE FOLLOWING IS ADDED AS THE LAST SENTENCE OF THE FIRST PARAGRAPH UNDER THE
HEADING DOLLAR COST AVERAGING ON PAGE 17 OF THE PROSPECTUS:
Fixed account options are not available as target accounts for the DCA
program.
THE FOLLOWING IS INSERTED IN THE DEATH BENEFIT SECTION PRIOR TO THE SECTION
TITLED ESTATEPLUS ON PAGE 17 OF THE PROSPECTUS:
The information below describes the death benefits on contracts issued on or
after October 24, 2001:
The term Net Purchase Payment is used frequently in explaining these death
benefit options. Net Purchase Payments is an on-going calculation. It does not
represent a contract value.
We define Net Purchase Payments as Purchase Payments less an Adjustment for each
withdrawal. If you have not taken any withdrawals from your contract, Net
Purchase Payments equals total purchase payments into your contract. To
calculate the Adjustment amount for the first withdrawal made under the
contract, we determine the percentage by which the withdrawal reduced the
contract value. For example, a $10,000 withdrawal from a $100,000 contract is a
10% reduction in value. This percentage is calculated by dividing the amount of
each withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking the withdrawal. The resulting
percentage is then multiplied by the amount of the total Purchase Payments and
subtracted from the amount of the total Purchase Payments on deposit at the time
of the withdrawal. The resulting amount is the initial Net Purchase Payment.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, we
determine the percentage by which the contract value is reduced by taking the
amount of the withdrawal in relation to the contract value immediately before
taking the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal, by this percentage. We subtract that result
from the Net Purchase Payment calculation as determined prior to the withdrawal
to arrive at all subsequent Net Purchase Payment calculations.
OPTION 1 -- PURCHASE PAYMENT ACCUMULATION OPTION
The death benefit is the greatest of:
Dated: October 22, 2001
Please keep this supplement with your prospectus.
2
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments compounded at a 4% annual growth rate
until the date of death (3% growth rate if age 70 or older at
the time of contract issue) plus any Purchase Payments recorded
after the date of death; and reduced for any withdrawals in the
same proportion that the withdrawal reduced contract value on
the date of the withdrawal; or
3. the contract value on the seventh contract anniversary, plus any
Purchase Payments since the seventh contract anniversary; and
reduced for any withdrawals since the seventh contract
anniversary in the same proportion that each withdrawal reduced
the contract value on the date of the withdrawal, all compounded
at a 4% annual growth rate until the date of death (3% growth
rate if age 70 or older at the time of contract issue) plus any
purchase payments recorded after the date of death; and reduced
for each withdrawals recorded after the date of death in the
same proportion that each withdrawal reduced the contract value
on the date of the withdrawal.
OPTION 2 -- MAXIMUM ANNIVERSARY OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments; or
3. the maximum anniversary value on any contract anniversary prior
to your 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments since
that contract anniversary; and reduced for any withdrawals since
the contract anniversary in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal.
If you are age 90 or older at the time of death and selected the Option 2 death
benefit, the death benefit will be equal to contract value at the time we
receive all required paperwork and satisfactory proof of death. Accordingly, you
do not get the advantage of Option 2 if:
- you are age 81 or older at the time of contract issue; or
- you are age 90 or older at the time of your death.
IN THE DEATH BENEFIT SECTION OF THE PROSPECTUS, UNDER THE ESTATEPLUS, THE TABLE
WHICH SHOWS THE AVAILABLE ESTATEPLUS BENEFIT FOR POLICYOWNERS BETWEEN THEIR 70TH
AND 81ST BIRTHDAYS AT THE TIME WE ISSUE THE CONTRACT IS DELETED AND REPLACED
WITH THE FOLLOWING:
------------------------------- ----------------------------- ----------------------------
CONTRACT YEAR ESTATEPLUS MAXIMUM
OF DEATH PERCENTAGE ESTATEPLUS AMOUNT
------------------------------- ----------------------------- ----------------------------
All Contract Years 25% of Earnings 40% of Net Purchase
Payments*
------------------------------- ----------------------------- ----------------------------
*Purchase Payments received after the 5th contract anniversary must remain in
the contract for at least 6 full months to be included as part of Net Purchase
Payments for the purpose of the Maximum EstatePlus Amount calculations.
THE FOLLOWING REPLACES ALL 3 PARAGRAPHS UNDER THE HEADING INSURANCE CHARGES ON
PAGE 22 OF THE PROSPECTUS:
The Company deducts a mortality and expense risk charge in the amount of 1.52%,
annually of the value of your contract invested in the Variable Portfolios. We
deduct the charge daily. This charge compensates the Company for the mortality
and expense risk and the costs of contract distribution assumed by the Company.
Generally, the mortality risks assumed by the Company arise from its contractual
obligations to make income payments after the Annuity Date and to provide a
death benefit. The expense risk assumed by the Company is that the costs of
administering the contracts and the Separate Account will exceed the amount
received from the administrative fees and charges assessed under the contract.
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.
THE FOLLOWING PARAGRAPHS ARE ADDED TO THE TAXES SECTION OF THE PROSPECTUS ON
PAGE 28 PRECEDING THE HEADING DIVERSIFICATION:
Dated: October 22, 2001
Please keep this supplement with your prospectus.
3
CONTRACTS OWNED BY A TRUST OR CORPORATION
A Trust or Corporation ("Non-Natural Owner") that is considering
purchasing this contract should consult a tax advisor. Generally, the
IRC does not treat a Non-qualified contract owned by a non-natural owner
as an annuity contract for Federal income tax purposes. The non-natural
owner pays tax currently on the contract's value in excess of the
owner's cost basis. Please see the Statement of Additional Information
for a more detailed discussion of the potential adverse tax consequences
associated with non-natural ownership of a Non-Qualified contract.
GIFTS, PLEDGES AND/OR ASSIGNMENTS OF A NON-QUALIFIED CONTRACT
If you gift your Non-qualified contract to a person other than your
spouse (or former spouse incident to divorce) you will pay federal tax
on the contract's cash value to the extent it exceeds your cost basis.
The recipient's cost basis will be increased by the amount on which you
will pay federal taxes. Also, the IRC treats any assignment or pledge
(or agreement to assign or pledge) of any portion of a Non-qualified
contract as a withdrawal. Please see the Statement of Additional
Information for a more detailed discussion regarding the potential tax
consequences of gifting, assigning or pledging a Non-Qualified contract.
THE FOLLOWING IS ADDED AS THE LAST SENTENCE OF THE FIRST PARAGRAPH UNDER THE
HEADING THE SEPARATE ACCOUNT ON PAGE 29 OF THE PROSPECTUS:
Assets in the separate account are not guaranteed by Anchor National.
THE FOLLOWING IS INSERTED IN APPENDIX C -- DEATH BENEFITS FOLLOWING SPOUSAL
CONTINUATION DIRECTLY ABOVE SECTION B TITLED THE ESTATEPLUS BENEFIT PAYABLE UPON
THE CONTINUING SPOUSE'S DEATH:
The term Continuation Net Purchase Payments is used frequently to describe the
death benefits payable to the beneficiary of the Continuing Spouse for contracts
issued on or after October 24, 2001. We define Continuation Net Purchase
Payments as Net Purchase Payments made on and/or after the Continuation Date.
For the purpose of calculating Continuation Net Purchase Payments, the amount
that equals the contract value on the Continuation Date, including the
Continuation Contribution is considered a Purchase Payment. If the Continuing
Spouse makes no additional Purchase Payments or withdrawals, Continuation Net
Purchase Payments equals the contract value on the Continuation Date, including
the Continuation Contribution.
The following describes the death benefit options following spousal continuation
for contracts issued on or after October 24, 2001:
1. Purchase Payment Accumulation Option
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
b. Continuation Net Purchase Payments compounded to the date of
death at a 4% annual growth rate, (3% growth rate if the
Continuing Spouse was age 70 or older on the Continuation
Date) plus any Purchase Payments recorded after the date of
death; and reduced by any withdrawals recorded after the date
of death in the same proportion that the withdrawal reduced
the contract value on the date of each withdrawal; or
c. The contract value on the seventh contract anniversary
following the original issue date of the contract, plus any
Purchase Payments since the seventh contract anniversary and
reduced for any withdrawals recorded after the seventh
contract anniversary in the same proportion that the
withdrawal reduced the contract value on the date of the
withdrawal, all compounded at a 4% annual growth rate until
the date of death (3% annual growth rate if the Continuing
Spouse is age 70 or older on the Continuation Date) plus any
Purchase Payments; and reduced for any withdrawals recorded
after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greater of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Net Purchase Payments made from the original contract issue date
compounded to the date of death at a 4% annual growth rate, (3%
growth rate if the Continuing Spouse was age 70 or older on the
original contract issue date) plus any Purchase Payments
recorded after the date of death; and reduced for any
withdrawals recorded after the date of death in the same
proportion that each withdrawal reduced the contract value on
the date of the withdrawal; or
Dated: October 22, 2001
Please keep this supplement with your prospectus.
4
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary; and reduced for
any withdrawals since the seventh contract anniversary in the
same proportion that each withdrawal reduced the contract value
on the date of the withdrawal, all compounded at a 4% annual
growth rate until the date of death (3% annual growth rate if
the Continuing Spouse is age 70 or older on the contract issue
date) plus any Purchase Payments; and reduced for any
withdrawals recorded after the date of death in the same
proportion that each withdrawal reduced the contract value on
the date of the withdrawal
2. Maximum Anniversary Value Option -- if the continuing spouse is
below age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
b. Continuation Net Purchase Payments; or
c. The maximum anniversary value on any contract anniversary
occurring after the Continuation Date and prior to the
Continuing Spouse's 81st birthday. The anniversary value
equals the contract value on a contract anniversary plus any
Purchase Payments made since that contract anniversary; and
reduced for any withdrawals recorded since the contract
anniversary in the same proportion that each withdrawal
reduced the contract value on the date of the withdrawal.
Contract anniversary is defined as any anniversary following
the full 12 month period after the original contract issue
date.
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required
paperwork and satisfactory proof of the Continuing Spouse's
death; or
b. Net Purchase Payments received since the original issue date;
or
c. The maximum anniversary value on any contract anniversary from
the original contract issue date prior to the Continuing
Spouse's 81st birthday. The anniversary value equals the
contract value on a contract anniversary plus any Purchase
Payments since that contract anniversary; and reduced for any
withdrawals since the contract anniversary in the same
proportion that the withdrawal reduced each contract value on
the date of the withdrawal. Contract anniversary is defined as
the full 12 month period after the original contract issue
date.
If the Continuing Spouse is age 90 or older at the time of death, under the
Maximum Anniversary death benefit, their beneficiary will receive only the
contract value at the time we receive all required paperwork and satisfactory
proof of death.
IN THE SECOND COLUMN ON PAGE C-2 OF APPENDIX C, THE FIRST PARAGRAPH, TABLE AND
SECOND PARAGRAPH MARKED WITH AN ASTERISK, ARE DELETED.
Dated: October 22, 2001
Please keep this supplement with your prospectus.
5
As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 33-87864
ANCHOR NATIONAL LIFE INSURANCE COMPANY
VARIABLE SEPARATE ACCOUNT
SUPPLEMENT TO THE
POLARIS PROTECTOR VARIABLE ANNUITY
PROSPECTUS DATED JULY 9, 2001
THE BULLET POINT FOLLOWING "MANAGED BY WM ADVISORS, INC." ON THE FIRST PAGE
OF THE PROSPECTUS AFTER THE SUBHEADING "BALANCED" IS REPLACED BY THE FOLLOWING:
- Asset Allocation Portfolio SAST
THE FOLLOWING REPLACES THE FEE TABLE AND FOOTNOTES FOR THE SUNAMERICA
SERIES TRUST ON PAGE 5 OF THE PROSPECTUS:
SunAmerica Series Trust
(as a percentage of average net assets after reimbursement or waiver of expenses
for the Trust's fiscal year ended January 31, 2001)
MANAGEMENT SERVICE (12b-1) OTHER TOTAL ANNUAL
PORTFOLIO FEE FEE(7) EXPENSES EXPENSES
===================================================================================================
Aggressive Growth 0.66% 0.15% 0.04% 0.85%
---------------------------------------------------------------------------------------------------
Alliance Growth 0.60% 0.15% 0.04% 0.79%
---------------------------------------------------------------------------------------------------
Blue Chip Growth(1,4) 0.70% 0.15% 0.15% 1.00%
---------------------------------------------------------------------------------------------------
Cash Management(5) 0.49% 0.15% 0.03% 0.67%
---------------------------------------------------------------------------------------------------
Corporate Bond 0.62% 0.15% 0.07% 0.84%
---------------------------------------------------------------------------------------------------
Davis Venture Value 0.71% 0.15% 0.04% 0.90%
---------------------------------------------------------------------------------------------------
"Dogs" of Wall Street 0.60% 0.15% 0.12% 0.87%
---------------------------------------------------------------------------------------------------
Emerging Markets(2) 1.25% 0.15% 0.32% 1.72%
---------------------------------------------------------------------------------------------------
Federated Value 0.70% 0.15% 0.06% 0.91%
---------------------------------------------------------------------------------------------------
Global Bond 0.69% 0.15% 0.12% 0.96%
---------------------------------------------------------------------------------------------------
Global Equities 0.70% 0.15% 0.14% 0.99%
---------------------------------------------------------------------------------------------------
Goldman Sachs Research(1,3,4) 1.20% 0.15% 0.15% 1.50%
---------------------------------------------------------------------------------------------------
Growth-Income 0.53% 0.15% 0.04% 0.72%
---------------------------------------------------------------------------------------------------
Growth Opportunities 0.75% 0.15% 0.25% 1.15%
---------------------------------------------------------------------------------------------------
High-Yield Bond 0.63% 0.15% 0.08% 0.86%
---------------------------------------------------------------------------------------------------
International Diversified Equities 1.00% 0.15% 0.21% 1.36%
---------------------------------------------------------------------------------------------------
International Growth and Income 0.95% 0.15% 0.23% 1.33%
---------------------------------------------------------------------------------------------------
Marsico Growth 0.85% 0.15% 0.15% 1.15%
---------------------------------------------------------------------------------------------------
MFS Growth and Income 0.70% 0.15% 0.06% 0.91%
---------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth(1,2) 0.75% 0.15% 0.07% 0.97%
---------------------------------------------------------------------------------------------------
MFS Total Return(2) 0.66% 0.15% 0.08% 0.89%
---------------------------------------------------------------------------------------------------
Putnam Growth 0.75% 0.15% 0.04% 0.94%
---------------------------------------------------------------------------------------------------
Real Estate 0.80% 0.15% 0.16% 1.11%
---------------------------------------------------------------------------------------------------
SunAmerica Balanced 0.59% 0.15% 0.05% 0.79%
---------------------------------------------------------------------------------------------------
Technology(4) 1.20% 0.15% 0.29% 1.64%
---------------------------------------------------------------------------------------------------
Telecom Utility(2,6) 0.75% 0.15% 0.09% 0.99%
---------------------------------------------------------------------------------------------------
Worldwide High Income 1.00% 0.15% 0.10% 1.25%
===================================================================================================
(1) For this portfolio, the advisor, SunAmerica Asset Management Corp., has
voluntarily agreed to waive fees or expenses, if necessary, to keep
operating expenses at or below established maximum amounts. All waivers or
reimbursements may be terminated at any time. Only certain portfolios
relied on these waivers and/or reimbursements during this fiscal year as
follows: Absent fee waivers or reimbursement of expenses by the adviser or
custody credits, you would have incurred the following expenses during the
last fiscal year; Blue Chip Growth 1.96%, Goldman Sachs Research 1.78%;
Growth Opportunities 1.41%; and Marsico Growth 4.88%. Absent recoupment of
expenses by the adviser, the Total Annual Expenses during the last fiscal
year for the Emerging Markets Portfolio would have been 1.68%. For MFS
Mid-Cap
Date: October 22, 2001
Please keep this supplement with your prospectus.
1
Growth Portfolio, the adviser recouped prior year expense reimbursements
that were mathematically insignificant, resulting in the expense ratio
before and after recoupment remaining at 0.97%.
(2) Gross of custody credits of 0.01%.
(3) The ratio reflects an expense cap of 1.50% and 1.15% for Goldman Sachs
Research and Marsico Growth, respectively, which is net of custody credits
of 0.01% and 0.44% and respectively, or waivers/reimbursements if
applicable.
(4) Annualized.
(5) Formerly managed by SunAmerica Asset Management Corp.
(6) Prior to July 5, 2000, the Telecom Utility Portfolio was named Utility
Portfolio. The name change will not result in any modifications to the
portfolio's principal investment goal or fundamental investment policies.
(7) The Board of Trustees adopted a 12(b)(1) Plan with respect to the
SunAmerica Series Trust on May 21, 2001. Although this Plan was not in
place at the fiscal year end shown here, the 0.15% service fee is shown in
these expense numbers.
THE FOLLOWING REPLACES FOOTNOTE 2 ON PAGE 8 OF THE PROSPECTUS UNDER THE HEADING
"EXPLANATION OF FEE TABLES AND EXAMPLES":
2. For certain Variable Portfolios, the adviser, SunAmerica Asset
Management Corp., has voluntarily agreed to waive fees or reimburse certain
expenses, if necessary, to keep annual operating expenses at or below the
lesser of the maximum allowed by any applicable state expense limitations
or the following percentages of each Variable Portfolio's average net
assets: Blue Chip Growth 1.00%; Emerging Markets 2.05% (recouping prior
expense reimbursements); Goldman Sachs Research 1.50%; Growth Opportunities
1.15%; Marsico Growth 1.15%; MFS Mid-Cap Growth 1.30% (recouping prior
expense reimbursements); Technology 1.70%. The adviser also may voluntarily
waive or reimburse additional amounts to increase a Variable Portfolio's
investment return. All waivers and/or reimbursements may be terminated at
any time. Furthermore, the adviser may recoup any waivers or reimbursements
within two years after such waivers or reimbursements are granted, provided
that the Variable Portfolio is able to make such payment and remain in
compliance with the foregoing expense limitations.
THE FOLLOWING IS ADDED AS THE LAST SENTENCE OF THE FIRST PARAGRAPH UNDER THE
HEADING DOLLAR COST AVERAGING ON PAGE 11 OF THE PROSPECTUS:
Fixed account options are not available as target accounts for the DCA
program.
THE FOLLOWING IS INSERTED IN THE DEATH BENEFIT SECTION PRIOR TO THE SECTION
TITLED ESTATEPLUS ON PAGE 16 OF THE PROSPECTUS:
The information below describes the death benefits on contracts issued on or
after October 24, 2001:
The term Net Purchase Payment is used frequently in explaining these death
benefit options. Net Purchase Payments is an on-going calculation. It does not
represent a contract value.
We define Net Purchase Payments as Purchase Payments less an Adjustment for each
withdrawal. If you have not taken any withdrawals from your contract, Net
Purchase Payments equals total purchase payments into your contract. To
calculate the Adjustment amount for the first withdrawal made under the
contract, we determine the percentage by which the withdrawal reduced the
contract value. For example, a $10,000 withdrawal from a $100,000 contract is a
10% reduction in value. This percentage is calculated by dividing the amount of
each withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking the withdrawal. The resulting
percentage is then multiplied by the amount of the total Purchase Payments and
subtracted from the amount of the total Purchase Payments on deposit at the time
of the withdrawal. The resulting amount is the initial Net Purchase Payment.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, we
determine the percentage by which the contract value is reduced by taking the
amount of the withdrawal in relation to the contract value immediately before
taking the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal by this percentage. We subtract that result
from the Net Purchase Payment calculation as determined prior to the withdrawal
to arrive at all subsequent Net Purchase Payment calculations.
Date: October 22, 2001
Please keep this supplement with your prospectus.
2
OPTION 1 -- PURCHASE PAYMENT ACCUMULATION OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments compounded at a 4% annual growth rate until
the date of death (3% growth rate is age 70 or older at the time
of contract issue) plus any Purchase Payments recorded after the
date of death; and reduced for any withdrawals in the same
proportion that the withdrawal reduced contract value on the date
of the withdrawal; or
3. the contract value on the seventh contract anniversary, plus any
Purchase Payments since the seventh contract anniversary; and
reduced for any withdrawals since the seventh contract
anniversary in the same proportion that each withdrawal reduced
the contract value on the date of the withdrawal, all compounded
at a 4% annual growth rate until the date of death (3% growth
rate if age 70 or older at the time of contract issue) plus any
purchase payments recorded after the date and of death; and
reduced for each withdrawals recorded after the date of death in
the same proportion that each withdrawal reduced the contract
value on the date of the withdrawal.
OPTION 2 -- MAXIMUM ANNIVERSARY OPTION
The death benefit is the greatest of:
1. the contract value at the time we receive all required paperwork
and satisfactory proof of death; or
2. Net Purchase Payments; or
3. the maximum anniversary value on any contract anniversary prior
to your 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments since
that contract anniversary; and reduced for any withdrawals since
the contract anniversary in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal.
If you are age 90 or older at the time of death and selected the Option 2 death
benefit, the death benefit will be equal to contract value at the time we
receive all required paperwork and satisfactory proof of death. Accordingly, you
do not get the advantage of Option 2 if:
- you are age 81 or older at the time of contract issue; or
- you are age 90 or older at the time of your death.
IN THE DEATH BENEFIT SECTION OF THE PROSPECTUS, UNDER THE SUB-HEADING
ESTATEPLUS, THE TABLE WHICH SHOWS THE AVAILABLE ESTATEPLUS BENEFIT FOR
POLICYOWNERS BETWEEN THEIR 70TH AND 81ST BIRTHDAYS AT THE TIME WE ISSUE THE
CONTRACT IS DELETED AND REPLACED WITH THE FOLLOWING:
----------------------------------------------------------------------------
CONTRACT YEAR ESTATEPLUS MAXIMUM
OF DEATH PERCENTAGE ESTATEPLUS AMOUNT
----------------------------------------------------------------------------
All Contract Years 25% of Earnings 40% of Net Purchase Payments*
----------------------------------------------------------------------------
*Purchase Payments received after the 5th contract anniversary must remain in
the contract for at least 6 full months to be included as part of Net Purchase
Payments for the purpose of the Maximum EstatePlus Amount calculations.
THE FOLLOWING PARAGRAPHS ARE ADDED TO THE TAXES SECTION OF THE PROSPECTUS ON
PAGE 17 PRECEDING THE HEADING DIVERSIFICATION:
CONTRACTS OWNED BY A TRUST OR CORPORATION
A Trust or Corporation ("Non-Natural Owner") that is considering
purchasing this contract should consult a tax advisor. Generally, the
IRC does not treat a Non-qualified contract owned by a non-natural
owner as an annuity
Date: October 22, 2001
Please keep this supplement with your prospectus.
3
contract for Federal income tax purposes. The non-natural owner pays
tax currently on the contract's value in excess of the owner's cost
basis. Please see the Statement of Additional Information for a more
detailed discussion of the potential adverse tax consequences
associated with non-natural ownership of a Non-Qualified contract.
GIFTS, PLEDGES AND/OR ASSIGNMENTS OF A NON-QUALIFIED CONTRACT
If you gift your Non-qualified contract to a person other than your
spouse (or former spouse incident to divorce) you will pay federal tax
on the contract's cash value to the extent it exceeds your cost basis.
The recipient's cost basis will be increased by the amount on which you
will pay federal taxes. Also, the IRC treats any assignment or pledge
(or agreement to assign or pledge) of any portion of a Non-qualified
contract as a withdrawal. Please see the Statement of Additional
Information for a more detailed discussion regarding the potential tax
consequences of gifting, assigning or pledging a Non-Qualified
contract.
THE FOLLOWING IS ADDED AS THE LAST SENTENCE OF THE FIRST PARAGRAPH UNDER THE
HEADING THE SEPARATE ACCOUNT ON PAGE 18 OF THE PROSPECTUS:
Assets in the separate account are not guaranteed by Anchor National.
THE FOLLOWING IS INSERTED IN APPENDIX B -- DEATH BENEFITS FOLLOWING SPOUSAL
CONTINUATION DIRECTLY ABOVE SECTION B TITLED THE ESTATEPLUS BENEFIT PAYABLE UPON
THE CONTINUING SPOUSE'S DEATH:
The term Continuation Net Purchase Payments is used frequently to describe the
death benefits payable to the beneficiary of the Continuing Spouse for contracts
issued on or after October 24, 2001. We define Continuation Net Purchase
Payments as Net Purchase Payments made on and/or after the Continuation Date.
For the purpose of calculating Continuation Net Purchase Payments, the amount
that equals the contract value on the Continuation Date, including the
Continuation Contribution is considered a Purchase Payment. If the Continuing
Spouse makes no additional Purchase Payments or withdrawals, Continuation Net
Purchase Payments equals the contract value on the Continuation Date, including
the Continuation Contribution.
The following describes the death benefit options following spousal continuation
for contracts issued on or after October 24, 2001:
1. Purchase Payment Accumulation Option
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments compounded to the date of
death at a 4% annual growth rate, (3% growth rate if the
Continuing Spouse was age 70 or older on the Continuation Date)
plus any Purchase Payments recorded after the date of death; and
reduced by any withdrawals recorded after the date of death in
the same proportion that the withdrawal reduced the contract
value on the date of each withdrawal; or
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary and reduced for
any withdrawals recorded after the seventh contract anniversary
in the same proportion that the withdrawal reduced the contract
value on the date of the withdrawal, all compounded at a 4%
annual growth rate until the date of death (3% annual growth rate
if the Continuing Spouse is age 70 or older on the Continuation
Date) plus any Purchase Payments; and reduced for any withdrawals
recorded after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greater of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
Date: October 22, 2001
Please keep this supplement with your prospectus.
4
b. Net Purchase Payments made from the original contract issue date
compounded to the date of death at a 4% annual growth rate, (3%
growth rate if the Continuing Spouse was age 70 or older on the
original contract issue date) plus any Purchase Payments recorded
after the date of death; and reduced for any withdrawals recorded
after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal; or
c. The contract value on the seventh contract anniversary following
the original issue date of the contract, plus any Purchase
Payments since the seventh contract anniversary; and reduced for
any withdrawals since the seventh contract anniversary in the
same proportion that each withdrawal reduced the contract value
on the date of the withdrawal, all compounded at a 4% annual
growth rate until the date of death (3% annual growth rate if the
Continuing Spouse is age 70 or older on the contract issue) plus
any Purchase Payments; and reduced for any withdrawals recorded
after the date of death in the same proportion that each
withdrawal reduced the contract value on the date of the
withdrawal
2. Maximum Anniversary Value Option -- if the continuing spouse is below
age 90 at the time of death, and:
If a Continuation Contribution is added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments; or
c. The maximum anniversary value on any contract anniversary
occurring after the Continuation Date and prior to the Continuing
Spouse's 81st birthday. The anniversary value equals the contract
value on a contract anniversary plus any Purchase Payments made
since that contract anniversary; and reduced for any withdrawals
recorded since the contract anniversary in the same proportion
that each withdrawal reduced the contract value on the date of
the withdrawal. Contract anniversary is defined as any
anniversary following the full 12 month period after the original
contract issue date.
If a Continuation Contribution is not added on the Continuation Date, the death
benefit is the greatest of:
a. The contract value on the date we receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Net Purchase Payments received since the original issue date; or
c. The maximum anniversary value on any contract anniversary from
the original contract issue date prior to the Continuing Spouse's
81st birthday. The anniversary value equals the contract value on
a contract anniversary plus any Purchase Payments since that
contract anniversary; and reduced for any withdrawals since the
contract anniversary in the same proportion that the withdrawal
reduced each contract value on the date of the withdrawal.
Contract anniversary is defined as the full 12 month period after
the original contract issue date.
If the Continuing Spouse is age 90 or older at the time of death, under the
Maximum Anniversary death benefit, their beneficiary will receive only the
contract value at the time we receive all required paperwork and satisfactory
proof of death.of death.
IN THE SECOND COLUMN ON PAGE B-2 OF APPENDIX B, THE FIRST PARAGRAPH, TABLE AND
SECOND PARAGRAPH MARKED WITH AN ASTERISK, ARE DELETED.
Date: October 22, 2001
Please keep this supplement with your prospectus.
5