CH2 New York

424B3 1 ch2424b3_1-02.htm CH2 NY CH2 New York

CH2 -SUPP. (02/04/2002) ACII-NY
Supplement to Prospectus Dated May 1, 2001
Supplement dated February 4, 2002

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.

A. MINIMUM PURCHASE PAYMENT

The minimum purchase payment of $10,000 is reduced to $5,000. In the following sections of the prospectus, $10,000 is replaced with
$5,000.

|X| HOW DO I PURCHASE THIS ANNUITY?
|X| WHAT ARE OUR REQUIREMENTS FOR PURCHASING THE ANNUITY? - Initial Purchase Payment
|X| MAY I MAKE SCHEDULED PAYMENTS DIRECTLY FROM MY BANK ACCOUNT?
|X| MAY I MAKE PURCHASE PAYMENTS THROUGH A SALARY REDUCTION PROGRAM?

B. AVAILABILITY IN THE STATE OF NEW YORK

APPENDIX E - SALE OF THE CONTRACTS TO RESIDENTS OF THE STATE OF NEW YORK

Some of the provisions of the Annuity are different for contracts offered to residents of the State of New York. These provisions
are noted below.

GLOSSARY OF TERMS

MVA: A market value adjustment used in the determination of Account Value of each Fixed Allocation on any day other than the Maturity
Date of such Fixed Allocation. You may transfer or withdraw all or part of the Account Value from a Fixed Allocation during the 30
days prior to the Maturity Date of such Fixed Allocation without application of a market value adjustment.

INVESTMENT OPTIONS

WHAT ARE THE FIXED INVESTMENT OPTIONS?
The State of New York does not allow a Guarantee Period to exceed ten years in duration. Additionally, the interest rate we credit
to the Fixed Allocation is subject to a minimum of 3%.

FEES AND CHARGES

WHAT ARE THE CONTRACT FEES AND CHARGES?

Annual Maintenance Fee: For contracts offered to residents of the State of New York the Annual Maintenance Fee is $30.00 or 2% of
your Account Value invested in the variable investment options, whichever is less.

MANAGING YOUR ANNUITY

"May I Change the Owner, Annuitant and Beneficiary Designations?": The following condition has been removed:
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|X| A new Annuitant subsequent to the Annuity Date.

"May I Return the Annuity if I Change My Mind?": The "free-look" period is within 21 days of receipt of the Annuity and within 10
days of receipt for IRAs. The amount to be refunded is the Account Value in the Sub-accounts plus the Interim Value of the Fixed
Allocations and for IRAs the amount to be refunded is the greater of Premium or Account Value. Notice received by mail is effective
as of the date of the postmark.

MANAGING YOUR ACCOUNT VALUE

ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN INVESTMENT OPTIONS?
The minimum amount allowed in an investment option is $500. Your transfer request must be In Writing. A specific authorization form
MUST be completed which authorizes us to accept transfers via phone or through means such as electronic mail.

The following services, which we may offer, are not available for New York contracts: 1) authorization of an independent third party
to transact transfers on your behalf; and 2) market timing programs.

DO YOU OFFER PROGRAMS DESIGNED TO GUARANTEE A "RETURN OF PREMIUM" AT A FUTURE DATE?
The Guaranteed Return OptionSM will be available to residents of the State of New York upon approval by New York.

MVA Formula: We apply certain formulas to determine "I" and "J" when we do not offer Guarantee Periods with a duration equal to the
remaining period. These formulas are as follows:

(a) If we offer Guarantee Periods to your class of Annuities with durations that are both shorter and longer than the remaining
period, we interpolate a rate for "J" between our then current interest rates for Guarantee Periods with the next
shortest or longest durations then available for new Fixed Allocations for your class of Annuities.

(b) If we no longer offer Guarantee Periods to your class of Annuities with durations that are both longer and shorter than the
remaining period, we determine rates for "J" and, for purposes of determining the MVA only, for "I" based on the
Moody's Corporate Bond Yield Average - Monthly average Corporates (the "Average"), as published by Moody's Investor
Services, Inc., its successor, or an equivalent service should such Average no longer be published by Moody's. For
determining "I", we will use the Average published on or immediately prior to the state of the applicable Guarantee
Period.

WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?
We will notify you of the Guarantee Periods available as of the date of such notice, at least 45 days and not more than 60 days prior
to the Maturity Date. No MVA applies to any amounts allocated to a particular Fixed Allocation if you withdraw all or part of the
Account Value in such Fixed Allocation within 30 days of maturity. If you are age 55 or older you may invest in a Fixed Allocation
with a Guarantee Period of less than five years.

AMERICAN SKANDIA'S PERFORMANCE ADVANTAGE

This benefit is not available to residents of the State of New York.

ACCESS TO ACCOUNT VALUE

WHAT ARE MINIMUM DISTRIBUTIONS AND WHEN WOULD I NEED TO MAKE THEM?
The Minimum Distribution provision is only available for annuities issued under Section 403(b) of the IRS Code or for IRA's where
Minimum Distributions are required. Minimum Distributions are not available for any other contracts.

"What is a Medically-Related Surrender and How Do I Qualify?": This section is deleted in its entirety.

HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?
The Annuity Date may not be later than the first day of the calendar month following the Annuitant's 90th birthday. The Annuity Date
must be the first or the fifteenth days of a calendar month. However, if the contract's accumulated value, at the time of
annuitization, is less than $2,000, or would provide an income, the initial payment of which is less than $20 per month, in lieu of
commencing annuity payments, we reserve the right to cancel the annuity and pay you the total of the Account Value in any Sub-account
plus the Interim value of any Fixed Allocation.

DEATH BENEFIT

Basic Death Benefit
The basic Death Benefit depends on the decedent's age on the date of death:

If death occurs before the decedent's age 85: The Death Benefit is the greater of:

|X| The sum of all Purchase Payments less the sum of all withdrawals; and
|X| The sum of your Account Value in the variable investment options and your Interim Value in the Fixed Allocations.

If death occurs when the decedent is age 85 or older: The Death Benefit is the sum of your Account Value in the variable
investment options and your Interim Value in the Fixed Allocations.

Optional Death Benefits
The Optional Death Benefits described in the Prospectus are not offered to residents of the State of New York. However, the Highest
Anniversary Value Optional Death Benefit described below is available to new purchasers of the Annuity who are residents of the State
of New York.

If the Annuity has one Owner, the Owner must be age 80 or less at the time the Highest Anniversary Value Optional Death Benefit is
purchased. If the Annuity has joint Owners, the oldest Owner must be age 80 or less. If the Annuity is owned by an entity, the
Annuitant must be age 80 or less.

Key Terms Used with the Highest Anniversary Value Death Benefit

|X| The Death Benefit Target Date is the contract anniversary on or after the 80th birthday of the current Owner, the oldest of
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either joint Owner or the Annuitant, if entity owned.

|X| The Highest Anniversary Value equals the highest of all previous "Anniversary Values" on or before the earlier of the
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Owner's date of death and the "Death Benefit Target Date".

|X| The Anniversary Value is the Account Value as each anniversary of the Issue Date plus the sum of all Purchase Payments on or
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after such anniversary less the sum of all "Proportional Reductions" since such anniversary. The Anniversary Value on the Issue
Date is equal to your Purchase Payment.

|X| A Proportional Reduction is a reduction to the value being measured caused by a withdrawal, equaling the percentage of the
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withdrawal as compared to the Account Value as of the date of the withdrawal. For example, if your Account Value is $10,000 and
you withdraw $2,000 (a 20% reduction), we will reduce both your Anniversary Value and the amount determined by Purchase Payments
increasing at the appropriate interest rate by 20%.

Calculation of Highest Anniversary Value Death Benefit
The Highest Anniversary Value Death Benefit depends on whether death occurs before or after the Death Benefit Target Date.

If the Owner dies before the Death Benefit Target Date, the Death Benefit equals the greatest of:

1. the Account Value in the Sub-accounts plus the Interim Value of any Fixed Allocations (no MVA) as of the date we receive in
writing "due proof of death"; and
2. the "Highest Anniversary Value" on or immediately preceding the Owner's date of death.

The amount determined by this calculation is increased by any Purchase Payments received after the Owner's date of death and
decreased by any Proportional Reductions since such date.

If the Owner dies on or after the Death Benefit Target Date, the Death Benefit equals the greater of:

1. the Account Value as of the date we receive in writing "due proof of death" (an MVA may be applicable to amounts in any
Fixed Allocations); and
2. the Highest Anniversary Value on the Death Benefit Target Date plus the sum of all Purchase Payments less the sum of all
Proportional Reductions since the Death Benefit Target Date.

Charges for Highest Anniversary Value Death Benefit
If you purchase the Highest Anniversary Value Optional Death Benefit, an annual charge of 0.20% is deducted from your Annuity's
Account Value. The charge will be based on the current Death Benefit under the Highest Anniversary Value Optional Death Benefit as
of the date the charge is deducted minus the Interim Value of any Fixed Allocations. The charge is deducted in addition to the
Insurance Charge. The charge is deducted in arrears on each anniversary of the Issue Date of the Annuity or, if you terminate the
Optional Death Benefit or surrender your Annuity, on the date the termination or surrender is effective.

AMERICAN SKANDIA'S ANNUITY REWARDS

This benefit is not available to residents of the State of New York.

Plus40(TM)OPTIONAL LIFE INSURANCE RIDER

This optional life insurance rider is not available to residents of the State of New York.

GENERAL INFORMATION

Separate Account B: We reserve the right to add Sub-accounts, eliminate Sub-accounts, to combine Sub-accounts, or to substitute
underlying mutual funds or portfolios of underlying mutual funds. In addition to obtaining prior approval from the insurance
department of our state of domicile before making such a substitution, deletion or addition, any such changes are subject to the
approval of the Superintendent of Insurance for the State of New York.

STATEMENT OF ADDITIONAL INFORMATION

Deferral of Transactions: We may defer any distribution or transfer from a Fixed Allocation or an annuity payout for a period not to
exceed 6 months. If we defer a distribution or transfer from any Fixed Allocation or any fixed annnuity payout for more than ten
(10) days, we pay interest using our then current crediting rate for this purpose, which is not less than 3% per year on the amount
deferred.

Modification: In addition to obtaining prior approval from the insurance department of our state of domicile, before making such a
substitution, deletion or addition, we will also obtain prior approval from the Superintendent of Insurance for New York.

Misstatement of Age or Sex: The following provision (c) is added:
(c) as to any annuity payments, we shall credit or charge interest using our then current crediting rate for this purpose, which is
not greater than 6% interest per year, calculated from the date of any underpayment or overpayment to the date actual payment is made.