ASAP2/FUSI AS2 -SUPP. (01/22/2001)                                                                                           ASII

                  Supplement to Prospectus Dated May 1, 2000, Revised Effective October 23, 2000
                                         Supplement dated January 22, 2001

This Supplement should be retained with the current Prospectus for your variable annuity contract issued by
American Skandia Life Assurance Corporation ("American Skandia").  If you do not have a current prospectus,
please contact American Skandia at 1-800-SKANDIA.

                                     I. ADDITIONAL VARIABLE INVESTMENT OPTIONS

The underlying Portfolios shown below are being offered as Sub-accounts under your Annuity.
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                                           Underlying Mutual Fund Portfolio Annual Expenses
                               (as a percentage of the average net assets of the underlying Portfolios)
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------------------------------------------------- --------------- ------------- -------------- ------------- ------------ -------------
                                                    Management     Other         12b-1 Fees    Total Annual   Fee          Net
                                                       Fees         Expenses                    Portfolio    Waivers       Annual
              UNDERLYING PORTFOLIO                                                              Operating    and           Fund
                                                                                                 Expenses    Expense       Operating
                                                                                                             Reimburse-mentExpenses

------------------------------------------------- --------------- ------------- -------------- ------------- ------------ -------------
ProFund VP:
  Biotechnology                                       0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Energy                                              0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Financial                                           0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Healthcare                                          0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Real Estate                                         0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Technology                                          0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Telecommunications                                  0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  Utilities                                           0.75%          1.00%          0.25%         2.00%          N/A         2.00%
  OTC                                                 0.75%          0.95%          0.25%         1.95%          N/A         1.95%
  Bear                                                0.75%          0.95%          0.25%         1.95%          N/A         1.95%
  Bull Plus                                           0.75%          0.95%          0.25%         1.95%          N/A         1.95%
------------------------------------------------- --------------- ------------- -------------- ------------- ------------ -------------

EXPENSE EXAMPLES

The Expense  Examples  shown below are being added with  respect to the new  Portfolios  that are being  offered as
Sub-accounts under your Annuity.
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                                                                  Expense Examples
                                                 (amounts shown are rounded to the nearest dollar)
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                                         -------------------------------------------- ----- ------------------------------------------
                                         If you  surrender  your  Annuity at the end         If you do not surrender your Annuity at
                                         of the  applicable  time period,  you would         the end of the applicable time period
                                         pay  the  following  expenses  on a  $1,000         or begin taking annuity payments at
                                         investment,  assuming  5% annual  return on         such time, you would pay the following
                                         assets:                                             expenses on a $1,000 investment,
                                                                                             assuming 5% annual return on assets:
                                         -------------------------------------------- ----- ------------------------------------------


After:                                                                                 After:
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-------------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ----------
Sub-Account:                                 1 Year    3 Years    5 Years   10 Years          1 Year     3 Years    5 Years   10 Years
--------------------------------------------
-------------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ----------
ProFund VP Biotechnology                       110        167       221        375               35         107       181        375
ProFund VP Energy                              110        167       221        375               35         107       181        375
ProFund VP Financial                           110        167       221        375               35         107       181        375
ProFund VP Healthcare                          110        167       221        375               35         107       181        375
ProFund VP Real Estate                         110        167       221        375               35         107       181        375
ProFund VP Technology                          110        167       221        375               35         107       181        375
ProFund VP Telecommunications                  110        167       221        375               35         107       181        375
ProFund VP Utilities                           110        167       221        375               35         107       181        375
ProFund VP OTC                                 110        166       219        371               35         106       179        371
ProFund VP Bear                                110        166       219        371               35         106       179        371
ProFund VP Bull Plus                           110        166       219        371               35         106       179        371
-------------------------------------------- --------- ---------- --------- ---------- ------ ---------- ---------- --------- ----------

The following is being added to the section entitled "Investment Options?"

INVESTMENT OPTIONS

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                                                                                                                           PORTFOLIO
      STYLE/                                        INVESTMENT OBJECTIVES/POLICIES                                          ADVISOR/
       TYPE                                                                                                               SUB-ADVISOR
------------------- ------------------------------------------------------------------------------------------------ -----------------------
Sector funds generally  diversify their  investments  across  particular  economic  sectors or a single  industry.  However,  because those
investments  are limited to a  comparatively  narrow  segment of the economy,  the  Portfolios  are generally not as  diversified  as other
Portfolios.  Sector  funds tend to be more  volatile  than other types of funds.  The value of fund shares may go up and down more  rapidly
than other funds. Each sector of the economy may also have different  regulatory or other risk factors that can cause greater  fluctuations
in the share price.  Please read the  prospectus for the  Portfolios  for further  details about the risks of the particular  sector of the
economy.  Each  ProFund  VP sector  Portfolio  will  concentrate  its  investments  in a  particular  industry  or group of  industries  to
approximately the same extent the applicable Index is so concentrated.
--------------------------------------------------------------------------------------------------------------------------------------------
------------------- ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP  Biotechnology:  seeks daily  investment  results that correspond to the performance
                    of the Dow Jones U.S.  Biotechnology  Index  ("Index").  The Index measures the  performance of
                    the biotechnology  sector of the U.S. equity market.  The Portfolio invests primarily in equity   ProFund Advisors LLC
                    securities of, or in instruments that provide exposure to,  biotechnology  companies engaged in
                    genetic research,  and/or the marketing and development of recombinant DNA products.  Companies
                    represented  in this  sector  may  include  companies  that may be newly  formed  and that have
                    relatively small market capitalizations.











      SECTOR
------------------- ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Energy:  seeks daily  investment  results that  correspond to the performance of the
                    Dow Jones U.S.  Energy  Sector  Index  ("Index").  The Index  measures the  performance  of the
                    energy sector of the U.S. equity market.  The Portfolio  invests primarily in equity securities   ProFund Advisors LLC
                    of, or in instruments  that provide  exposure to, energy  companies  engaged in the business of
                    oil equipment and services, oil-major, oil-secondary and pipelines.
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Financial:  seeks daily  investment  results that  correspond to the  performance of
                    the Dow Jones U.S.  Financial  Sector Index  ("Index").  The Index measures the  performance of
                    the financial  economic sector of the U.S. equity market.  The Portfolio  invests  primarily in
                    equity  securities  of,  or  in  instruments  that  provide  exposure  to,  financial  services
                    companies,  including regional banks, major international banks, insurance companies, companies   ProFund Advisors LLC
                    that invest,  directly or indirectly in real estate,  Fannie Mae,  credit card insurers,  check
                    cashing companies,  mortgage lenders,  investment  advisors,  savings and loans, savings banks,
                    thrifts,  building  associations  and  societies,  credit  unions,  securities  broker-dealers,
                    including investment banks and merchant banks, online brokers,  publicly traded stock exchanges
                    and specialty finance companies.
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Healthcare:  seeks daily  investment  results that  correspond to the performance of
                    the Dow Jones U.S.  Healthcare  Sector Index  ("Index").  The Index measures the performance of
                    the healthcare  sector of the U.S.  equity market.  The Portfolio  invests  primarily in equity
                    securities  of,  or  in  instruments   that  provide   exposure  to,  health  care   providers,   ProFund Advisors LLC
                    biotechnology  companies and  manufacturers of medical  supplies,  advanced medical devices and
                    pharmaceuticals.
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Real Estate:  seeks daily  investment  results that correspond to the performance of
                    the Dow Jones U.S.  Real Estate Index  ("Index").  The Index  measures the  performance  of the
                    real estate  industry  sector of the U.S.  equity market.  The Portfolio  invests  primarily in
                    equity  securities of, or in instruments  that provide  exposure to, hotel and resort companies   ProFund Advisors LLC
                    and real  estate  investment  trusts  (REITs)  that  invest in  apartments,  office  and retail
                    properties.  REITs are passive  investment  vehicles that invest primarily in  income-producing
                    real estate or real estate related loans or interests.
------------------- ------------------------------------------------------------------------------------------------ -----------------------






------------------- ------------------------------------------------------------------------------------------------ -----------------------
                                                                                                                           PORTFOLIO
      STYLE/                                        INVESTMENT OBJECTIVES/POLICIES                                          ADVISOR/
       TYPE                                                                                                               SUB-ADVISOR
------------------- ------------------------------------------------------------------------------------------------ -----------------------
------------------- ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Technology:  seeks daily  investment  results that  correspond to the performance of
                    the Dow Jones U.S.  Technology  Sector Index  ("Index").  The Index measures the performance of
                    the technology  sector of the U.S.  equity market.  The Portfolio  invests  primarily in equity
                    securities  of,  or in  instruments  that  provide  exposure  to,  companies  involved  in  the   ProFund Advisors LLC
                    development and production of technology  products,  including  computer hardware and software,
                    telecommunications  equipment,  microcomputer  components,  integrated  computer  circuits  and
                    office equipment utilizing technology.

      SECTOR
     (Cont.)
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund  VP  Telecommunications:   seeks  daily  investment  results  that  correspond  to  the
                    performance  of the Dow  Jones  U.S.  Telecommunications  Sector  Index  ("Index").  The  Index
                    measures the  performance  of the  telecommunications  sector of the U.S.  equity  market.  The
                    Portfolio  invests  primarily in equity  securities of, or in instruments that provide exposure   ProFund Advisors LLC
                    to,   telecommunications   companies   including   fixed  line   communications   and  wireless
                    communications.
------------------- ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Utilities:  seeks daily  investment  results that  correspond to the  performance of
                    the Dow Jones U.S.  Utilities  Sector Index  ("Index").  The Index measures the  performance of
                    the utilities  sector of the U.S.  equity  market.  The Portfolio  invests  primarily in equity   ProFund Advisors LLC
                    securities  of, or in  instruments  that provide  exposure  to,  utility  companies,  including
                    electric utilities, gas utilities and water utilities.
------------------- ------------------------------------------------------------------------------------------------ -----------------------
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The ProFund VP OTC,  Bear and Bull Plus  portfolios  are  available to all Owners.  It is  recommended  that only those Owners who engage a
financial advisor to allocate their funds in strategic or tactical asset allocation  strategies  invest in these  portfolios.  There can be
no assurance that any financial advisor will successfully predict market fluctuations.


The Portfolios  principally  invest in futures  contracts on the applicable index,  options on futures contracts and financial  instruments
such as equity caps, collars and floors,  swaps,  American  Depository Receipts and options on the index. The Portfolios may also invest in
stocks that the Advisor believes should simulate the movement of the applicable index.
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                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP OTC:  seeks daily  investment  results that  correspond  to the  performance  of the
                    NASDAQ  100  Index(TM).  The  NASDAQ 100 Index(TM)is  comprised  primarily  of large  capitalization   ProFund Advisors LLC
                    companies,  most with a technology  or growth  orientation.  If the  Portfolio is successful in
                    meeting its  objective,  it should  increase or decrease in value in direct  proportion  to any
                    increase or decrease in value of the NASDAQ 100 Index(TM).

   STRATEGIC OR
     TACTICAL
   ALLOCA-TION
------------------- ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Bear:  seeks daily investment  results that correspond to the inverse  (opposite) of
                    the  performance  of the S&P 500(R)Index.  The S&P 500(R)Index is  comprised  of diverse,  widely
                    traded,  large  capitalization  companies.  If the  Portfolio  is  successful  in  meeting  its
                    objective,  it should  increase in value in direct  proportion  to any decrease in the level of   ProFund Advisors LLC
                    the S&P 500(R)Index.  Conversely,  its value will decrease in direct  proportion to any increase
                    in the level of the S&P 500(R)Index.
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ------------------------------------------------------------------------------------------------ -----------------------
                    ProFund VP Bull Plus:  seeks daily  investment  results that correspond to one and a half times
                    (150%) the  performance  of the S&P(R)500 Index.  The S&P 500(R)Index is  comprised  of  diverse,
                    widely traded,  large capitalization  companies.  If the Portfolio is successful in meeting its
                    objective,  it should  gain  approximately  one and a half  times as much as the S&P 500(R)Index   ProFund Advisors LLC
                    when the prices of the  securities  in the S&P 500(R)Index rise on a given day and should  lose
                    approximately one and a half times as much when such prices decline on a given day.
------------------- ------------------------------------------------------------------------------------------------ -----------------------

Dow Jones has no  relationship  to the ProFunds VP,  other than the  licensing of the Dow Jones sector  indices and
its service marks for use in connection  with the ProFunds VP. The ProFunds VP are not sponsored,  endorsed,  sold,
or promoted by Standard & Poor's or NASDAQ,  and  neither  Standard & Poor's nor NASDAQ  makes any  representations
regarding the advisability of investing in the ProFunds VP.





                                   II. RYDEX VARIABLE TRUST SUB-ACCOUNT CLOSING

Effective  March 16, 2001,  the Nova,  Ursa and OTC portfolios of Rydex Variable Trust will no longer be offered as
Sub-accounts  under the  Annuity.  Owners  of  Annuity  contracts  issued  on or after  March 16,  2001 will not be
allowed  to  allocate  Account  Value to the Rydex  Nova,  Rydex  Ursa or Rydex OTC  Sub-accounts.  Except as noted
below, Owners of Annuity contracts issued before March 16, 2001, and/or their authorized  financial  professionals,
will no longer be able to allocate  additional  Account Value or make transfers into the Rydex Nova,  Rydex Ursa or
Rydex OTC  Sub-accounts.  Contract Owners and/or their  authorized  financial  professionals  who elect to transfer
Account  Value out of the Rydex  Sub-accounts  on or after March 16,  2001 will not be allowed to transfer  Account
Value into the Rydex  Sub-accounts at a later date.  Bank drafting,  dollar cost  averaging,  asset  allocation and
rebalancing  programs  that were  effective  on or  before  March 16,  2001 and  included  one or more of the Rydex
Sub-accounts  will be allowed to continue.  However,  no changes  involving the Rydex  Sub-accounts  may be made to
such programs.

American  Skandia  intends to file an application  with the  Securities  and Exchange  Commission to substitute the
Rydex Nova,  Rydex Ursa and Rydex OTC  Sub-accounts  with  corresponding  portfolios  of ProFunds  VP. The proposed
substitution  will not affect your rights or our obligations  under the Annuity.  Those Contract Owners effected by
the proposed  substitution  will receive  additional  information  from American  Skandia  notifying  them of their
rights under the SEC Exemptive Order once received.

                                III. NEW FIXED INVESTMENT OPTION GUARANTEE PERIODS

Effective  January 22, 2001,  American  Skandia is offering  new Fixed  Allocations  for use with certain  optional
investment  programs.  These special  purpose Fixed  Allocations are subject to limitations  and  restrictions,  as
described below.  We reserve the right to terminate offering these special purpose Fixed Allocations at any time.

A.       American  Skandia offers Fixed  Allocations  with Guarantee  Periods of 5 months or 11 months  exclusively
         for use with a Dollar  Cost  Averaging  program  ("DCA  Fixed  Allocations").  DCA Fixed  Allocations  are
         designed  to  automatically  transfer  Account  Value in  either  6 or 12  payments  under a  Dollar  Cost
         Averaging  program.  DCA Fixed  Allocations  may only be established by Contract Owners with their initial
         Purchase  Payment or additional  Purchase  Payments.  Contract  Owners may not transfer  existing  Account
         Value to a DCA Fixed Allocation.

Account Value allocated to the DCA Fixed  Allocation will be transferred to the  Sub-accounts  you choose under the
Dollar Cost Averaging  program.  Dollar Cost  Averaging  transfers will begin on the day following the date the DCA
Fixed  Allocation  is  established  and each month  following  until the entire  principal  amount plus earnings is
transferred.  NOTE: When a Dollar Cost Averaging  program is established  from a Fixed  Allocation,  the fixed rate
of  interest we credit to your  Account  Value is applied to a declining  balance due to the  transfers  of Account
Value to the  Sub-accounts  during the Guarantee  Period.  This will reduce the effective rate of return on the DCA
Fixed  Allocation  over the  Guarantee  Period.  Please  refer to the section  entitled  "Do You Offer  Dollar Cost
Averaging" for additional information about establishing a dollar cost averaging program.

Transfers  from Fixed  Allocations  as part of a Dollar Cost  Averaging  program are not subject to a Market  Value
Adjustment.  If you terminate the Dollar Cost Averaging  program before the entire  principal  amount plus earnings
has been transferred to the  Sub-account(s),  you must transfer all remaining Account Value to any other investment
option.  Unless you provide  alternate  instructions  at the time you terminate the Dollar Cost Averaging  program,
Account Value will be  transferred to the AST Money Market  Sub-account.  A Market Value  Adjustment  will apply if
you  terminate  the Dollar  Cost  Averaging  program  before the entire  principal  amount plus  earnings  has been
transferred to the Sub-account(s).

B.       American Skandia offers Fixed Allocations with Guarantee  Periods of 3 months or 6 months  exclusively for
         use as a short-term Fixed Allocation  ("Short-term Fixed  Allocations").  Short-term Fixed Allocations may
         only be  established  by Contract  Owners  with their  initial  Purchase  Payment or  additional  Purchase
         Payments.  Contract Owners may not transfer existing Account Value to a Short-term Fixed Allocation.

On  the  Maturity  Date  of the  Short-term  Fixed  Allocation,  the  Account  Value  will  be  transferred  to the
Sub-account(s)  you choose at the inception of the program.  If no  instructions  are provided,  such Account Value
will be transferred to the AST Money Market  Sub-account.  Short-term  Fixed  Allocations may not be renewed on the
Maturity  Date. If you surrender the Annuity or transfer any Account  Value from the  Short-term  Fixed  Allocation
to any other investment option before the end of the Guarantee Period, a Market Value Adjustment will apply.






MARKET VALUE ADJUSTMENT
For purposes of the DCA Fixed  Allocations and Short-term Fixed  Allocations,  the Market Value Adjustment  formula
is modified as follows:  The  definition  of "J" within the MVA formula will be equal to the fixed rate of interest
for  new  DCA  Fixed  Allocations  of the  applicable  5 or 11  month  Guarantee  Period  or new  Short-term  Fixed
Allocations  of the  applicable  3 or 6 month  Guarantee  Period.  If American  Skandia no longer  offers DCA Fixed
Allocations or Short-term  Fixed  Allocations on the date that a Market Value Adjustment is being  calculated,  the
definition  of "J" within the MVA formula  will be equal to the fixed rate of  interest  for the  applicable  Fixed
Allocations on the date that the Fixed  Allocation  program was  terminated.  Please refer to the section  entitled
"How does the Market Value Adjustment Work?" for a description of the MVA formula.


                                              IV. SPOUSAL ASSUMPTION

The following paragraph is being added to the "Death Benefit" section of your Annuity.

Spousal Beneficiary - Assumption of Annuity
You may name your spouse as your  Beneficiary.  If you and your spouse own the Annuity jointly,  we assume that the
sole primary  Beneficiary  will be the surviving  spouse unless you elect an alternative  Beneficiary  designation.
Unless you elect an alternative  Beneficiary  designation,  the spouse Beneficiary may elect to assume ownership of
the  Annuity  instead  of taking the Death  Benefit  payment.  Any Death  Benefit  (including  any  optional  Death
Benefits)  that would have been  payable to the  Beneficiary  will become the new  Account  Value as of the date we
receive due proof of death and any  required  proof of a spousal  relationship.  As of the date the  assumption  is
effective,  the surviving  spouse will have all the rights and benefits  that would be available  under the Annuity
to a new  purchaser  of the same  attained  age.  For  purposes of  determining  any future  Death  Benefit for the
surviving  spouse,  the new Account Value will be considered as the initial  Purchase  Payment.  No CDSC will apply
to the new Account  Value.  However,  any  additional  Purchase  Payments  applied after the date the assumption is
effective will be subject to all provisions of the Annuity.


                                             V. OPTIONAL DEATH BENEFIT

The  optional  7.2%  Guaranteed  Minimum  Death  Benefit  (Option 2) was offered,  in those states where  approved,
between May 15, 1999 and  January 22,  2001.  As of January 22,  2001,  this  optional  Death  Benefit is no longer
being  offered to new  purchasers  of the  Annuity.  If  purchased,  this  optional  Death  Benefit  will apply for
Contract Owners who purchased it during that period.