Supplement Dated July 24, 2000*
                      to the Prospectus dated May 1, 2000
    of American Express New Solutions Variable Annuity(SM) 2040355 A (06/00)


The  following  information  applies  to  contracts  purchased  in the  state of
Pennsylvania.

1.       The  reference on page one of the  prospectus to  "Individual  or Group
         Flexible  Premium  Deferred  Combination   Fixed/Variable  Annuity"  is
         changed to "Individual Flexible Premium Deferred Variable Annuity."

2.       The one-year fixed account is not available under  contracts  purchased
         in Pennsylvania. Any reference in this prospectus to the one-year fixed
         account,  and any  contract  features or benefits  associated  with the
         one-year fixed account are deleted.

3.       The  Guarantee  Period  Accounts  are  not  available  under  contracts
         purchased in  Pennsylvania.  Any  reference in this  prospectus  to the
         Guarantee  Period  Accounts,  and any  contract  features  or  benefits
         associated with the Guarantee Period Accounts are deleted.

4.       The  minimum  initial  purchase  payment  (not  including   Systematic
         Investment Plans) is changed from $5,000 to $2,000.

5.       The  following  subsection  replaces  the  subsection  on the  "Special
         dollar-cost  averaging  program" that was added to the "Making the Most
         of Your  Contract"  section of the  prospectus  by supplement on May 1,
         2000:

         Special dollar-cost averaging program

         You may elect to  allocate  $10,000 or more of your  initial  purchase
         payment to this program.

         We will credit  your  initial  purchase  payment  with  interest at the
         current   guaranteed  annual  rate  in  effect  on  the  date  of  your
         allocation. We will change the rate from time to time at our discretion
         and the rate  will be based on  competition.  Once the rate is set,  it
         does not change.

         The  rate is  credited  on the  balance  remaining  in the  dollar-cost
         averaging fixed account and is not credited after we transfer the value
         to the subaccounts. Monthly, we transfer amounts out of the dollar-cost
         averaging  fixed account into the  subaccounts  you  selected.  You can
         choose from either the six month or the twelve month program.
         All amounts are transferred out within the period you chose.

         You may not elect to  participate  in this  program  if you also elect
         automatic rebalancing.

         You may terminate  participation  in the program at any time. If you do
         so,  you will no  longer  receive  the  guaranteed  annual  rate on any
         remaining balance in the dollar-cost  averaging fixed account.  We will
         transfer your  remaining  balance in the  dollar-cost  averaging  fixed
         account  to the  subaccounts  you  chose  in the same  proportion  your
         interest in each subaccount bears to your total contract value.

         We can modify the terms of this program or discontinue  this program at
         any time.  Any  modification  will not  affect  amounts  already in the
         program.

240355-10 A (07/00)

*Valid until April 30, 2001.