0000950148-01-502044.txt : 20011029
0000950148-01-502044.hdr.sgml : 20011029
ACCESSION NUMBER: 0000950148-01-502044
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: 333-65953
FILM NUMBER: 1765088
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
v75682bte424b3.txt
PROSPECTUS SUPPLEMENT
As filed pursuant to Rule 424(b)(3)
under the Securities Act of 1933
Registration No. 333-65953
ANCHOR NATIONAL LIFE INSURANCE COMPANY
--------------------------------------------------------------------------------
VARIABLE ANNUITY ACCOUNT SEVEN
SUPPLEMENT TO THE POLARIS II ASSET MANAGER PROSPECTUS
DATED MAY 1, 2001
================================================================================
THE DATE OF THE PROSPECTUS IS CHANGED TO OCTOBER 15, 2001.
THE FOLLOWING IS ADDED AS THE LAST SENTENCE OF THE FIRST PARAGRAPH UNDER THE
HEADING DOLLAR COST AVERAGING ON PAGE 13 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
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 recorded after the date of
death 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
Date: October 22, 2001
Please keep this Supplement with your prospectus.
1
purchase payments recorded after the date and 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.
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 15 OF THE PROSPECTUS:
The Company deducts a mortality and expense risk charge in the amount of 0.85%,
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 19 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 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
Date: October 22, 2001
Please keep this Supplement with your prospectus.
2
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 C - DEATH BENEFITS FOLLOWING SPOUSAL
CONTINUATION DIRECTLY ABOVE SECTION B TITLED THE ESTATEPLUS BENEFIT PAYABLE UPON
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 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 Continuation Date) plus
any Purchase Payments; and reduced for any withdrawals recorded
after the date of death in the same proportion that the 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
Date: October 22, 2001
Please keep this Supplement with your prospectus.
3
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 n 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
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 each withdrawal reduced the
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. 333-65953
ANCHOR NATIONAL LIFE INSURANCE COMPANY
--------------------------------------------------------------------------------
VARIABLE ANNUITY ACCOUNT SEVEN
SUPPLEMENT TO THE POLARIS II A-CLASS PROSPECTUS
DATED OCTOBER 15, 2001
================================================================================
THE FOLLOWING IS INSERTED IN THE DEATH BENEFIT SECTION PRIOR TO THE SECTION
TITLED ESTATEPLUS ON PAGE 15 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. total gross Purchase Payments reduced by any withdrawals in the same
proportion that the withdrawal reduced the contract value on the
date of each withdrawal; or
3. 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 recorded after the date of
death in the same proportion that each withdrawal reduced contract
value on the date of the withdrawal; or
4. 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 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% 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
Date: October 22, 2001
Please keep this Supplement with your prospectus.
1
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. total gross Purchase Payments reduced by any withdrawals in the same
proportion that the withdrawal reduced the contract value on the
date of each withdrawal; 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 16 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 22, 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 information 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; or
c. 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 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
d. 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 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. Total gross Purchase Payments reduced by any withdrawals in the same
proportion that the withdrawal reduced the contract value on the
date of each withdrawal; or
c. 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
d. 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 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. total Gross Purchase Payments reduced by withdrawals in the same
proportion that the withdrawal reduced the contract value on the
date of the withdrawal; 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 each withdrawal reduced the
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