AS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON MAY 1, 2001

REGISTRATION NO. 333-52358
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

PRE-EFFECTIVE AMENDMENT NO. 2

TO
FORM S-6
FOR REGISTRATION UNDER THE SECURITIES ACT
OF 1933 OF SECURITIES OF UNIT INVESTMENT
TRUSTS REGISTERED ON FORM N-8B-2

------------------------

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
(Exact Name of Registrant)

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
1000 WOODBURY ROAD
WOODBURY, NEW YORK 11797
(Name and Address of principal executive office of depositor)

------------------------

MICHAEL S. FISCHER
CHIEF COUNSEL
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
20 WASHINGTON AVENUE SOUTH
MINNEAPOLIS, MN 55440

------------------------

Approximate date of proposed public offering: As soon as practicable after the
effective date of the Registration Statement.

Title of securities being registered: Variable life insurance contracts issued
by a registered separate account.

The Registrant hereby amends this Registration Statement on such date or dates
as may be necessary to delay its effective date until the Registrant shall file
a further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
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2

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE SEPARATE ACCOUNT I

CROSS REFERENCE SHEET
(RECONCILIATION AND TIE SHEET)

ITEM NUMBER OF
FORM N-8B-2 HEADING IN THE PROSPECTUS
- -------------- -------------------------

1 Cover Page
2 Cover Page
3 Not Applicable
4 Distribution of the Policies
5 ReliaStar Life Insurance Company of New York
6 The Variable Account
7 Not Applicable
8 Not Applicable
9 Not Applicable
10 Summary; Death Benefit; Payment and Allocation of Premiums;
Death Benefit Guarantee; Accumulation Value; Policy Lapse
and Reinstatement; Surrender Benefits; Additional
Information on the Investments of the Variable Account;
Transfers; Policy Loans; Free Look and Conversion Rights;
Voting Rights; General Provisions; Appendix A; Appendix B
11 Deductions and Charges; Additional Information on the
Investments of the Variable Account
12 Additional Information on the Investments of the Variable
Account
13 Deductions and Charges
14 The Policies; General Provisions; Distribution of the
Policies
15 Payment and Allocation of Premiums; Additional Information
on the Investments of the Variable Account
16 Payment and Allocation of Premiums; Surrender Benefits;
Additional Information on the Investments of the Variable
Account
17 Surrender Benefits; Policy Loans; Free Look and Conversion
Rights; General Provisions
18 The Variable Account; Additional Information on the
Investments of the Variable Account; Payment and Allocation
of Premiums
19 Voting Rights; General Provisions
20 Not Applicable
21 Policy Loans
22 Not Applicable
23 Bonding Arrangements
24 Definitions; General Provisions
25 ReliaStar Life Insurance Company of New York
26 Not Applicable
27 ReliaStar Life Insurance Company of New York
28 Management
29 ReliaStar Life Insurance Company of New York
30 Not Applicable
31 Not Applicable
32 Not Applicable
33 Not Applicable
34 Not Applicable
35 Not Applicable
36 Not Applicable
37 Not Applicable
38 Distribution of the Policies
39 Distribution of the Policies
40 Distribution of the Policies

ITEM NUMBER OF
FORM N-8B-2 HEADING IN THE PROSPECTUS
- -------------- -------------------------

41 Distribution of the Policies
42 Management
43 Not Applicable
44 Additional Information on the Investments of the Variable
Account; Payment and Allocation of Premiums; Deductions and
Charges
45 Not Applicable
46 Additional Information on the Investments of the Variable
Account; Deductions and Charges
47 Additional Information on the Investments of the Variable
Account
48 ReliaStar Life Insurance Company of New York; State
Regulation
49 Not Applicable
50 The Variable Account
51 Cover Page; The Policies; Death Benefit; Payment and
Allocation of Premiums; Deductions and Charges; Policy Lapse
and Reinstatement; General Provisions; Free Look and
Conversion Rights
52 Additional Information on the Investments of the Variable
Account
53 Federal Tax Matters
54 Not Applicable
55 Not Applicable
56 Not Applicable
57 Not Applicable
58 Not Applicable
59 Financial Statements

[ING RELIASTAR LOGO]

ReliaStar Life Insurance Company of New York
1000 Woodbury Road
Woodbury, New York 11797
-------------------------------------

SELECT(*)LIFE NY II
FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE POLICIES
ISSUED BY
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
OF
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

ReliaStar Life Insurance Company of New York is offering the flexible
premium variable life insurance policy (Select(*)Life NY II) described in this
prospectus. ReliaStar designed the Policy to provide (1) a death benefit payable
when the insured person dies; and (2) maximum flexibility regarding premium
payments and death benefits. Subject to certain restrictions, Policy owners may:

- vary the frequency and amount of premium payments;

- increase or decrease the level of death benefits payable under the
policy; and

- allocate premiums to:

-- the Fixed Account, an account that provides a minimum specified
rate of interest; and

-- Sub-Accounts of ReliaStar Life Insurance Company of New York
Variable Life Separate Account I, a variable account allowing you
to invest in certain portfolios of the following Funds:

AIM Variable Insurance Funds
The Alger American Fund

Fidelity Variable Insurance Products Fund

Fidelity Variable Insurance Products Fund II

The GCG Trust

Janus Aspen Series
Neuberger Berman Advisers Management Trust
OCC Accumulation Trust
Pilgrim Variable Products Trust
Putnam Variable Trust

If you allocate net premiums to Sub-Accounts of ReliaStar Life Insurance
Company of New York Variable Life Separate Account I, the amount of the Policy's
death benefit may, and the total value attributed to a Policy will, vary to
reflect the investment performance of the Sub-Accounts you select.

The Policy's purpose is to provide insurance protection for the
beneficiary. ReliaStar does not claim that investing in the Policy is in any way
similar or comparable to a systematic investment plan or a mutual fund. Please
note that replacing your existing insurance coverage with the Policy might not
be to your advantage.

Generally, the Policy will remain in force as long as the cash surrender
value (that is, the amount that ReliaStar would pay if you surrender the Policy)
is sufficient to pay certain monthly charges. However, under certain
circumstances the Policy provides a death benefit guarantee that allows the
Policy to remain in force without regard to the cash surrender value. See "Death
Benefit Guarantee."

Interests in the Policies and shares of the Funds are not deposits or
obligations of or guaranteed by a bank, and are not Federally insured by the
Federal Deposit Insurance Corporation or any other government agency.

THE SECURITIES AND EXCHANGE COMMISSION HAS NOT APPROVED THESE SECURITIES OR
DETERMINED THAT THIS PROSPECTUS IS ACCURATE OR COMPLETE. ANY REPRESENTATION TO
THE CONTRARY IS A CRIMINAL OFFENSE.

PLEASE READ THIS PROSPECTUS CAREFULLY AND KEEP IT FOR FUTURE REFERENCE.
CALL 1-800-456-6965 TO OBTAIN A CURRENT PROSPECTUS FOR ANY OF THE FUNDS. A
CURRENT PROSPECTUS FOR EACH OF THE FUNDS MUST ACCOMPANY THIS PROSPECTUS AND
SHOULD BE READ IN CONJUNCTION WITH THIS PROSPECTUS.

THE DATE OF THIS PROSPECTUS IS MAY 14, 2001.

DEFINITIONS................................................. 5
PART 1. SUMMARY
The Policy................................................ 7
Free Look Rights.......................................... 8
Premium Payments.......................................... 8
Charges Against Premium Payments.......................... 8
Charges Against the Accumulation Value.................... 8
Charges Upon Lapse or Total Surrender of the Policy....... 8
Transfer and Partial Withdrawal Charges................... 9
Investment Advisory Fees and Other Fund Expenses.......... 9
The Variable Account...................................... 11
The Fixed Account......................................... 11
The Funds................................................. 11
Surrenders................................................ 14
Partial Withdrawals....................................... 14
Loans..................................................... 14
Transfers................................................. 14
Dollar Cost Averaging Service and Portfolio Rebalancing
Service................................................ 15
Death Benefit Overview.................................... 15
Adjusting the Death Benefit............................... 15
Death Benefit Guarantees.................................. 15
Lapse..................................................... 15
Taxation of Death Benefit Proceeds........................ 15
Taxation of the Policy.................................... 16
PART 2. DETAILED INFORMATION
ReliaStar Life Insurance Company of New York.............. 16
The Policies.............................................. 16
Deductions and Charges................................. 16
Premium Expense Charge................................. 17
Monthly Deduction...................................... 17
Cost of Insurance.................................... 17
Monthly Administrative Charge........................ 18
Monthly Amount Charge................................ 18
Monthly Variable Accumulation Value Charge........... 18
Optional Insurance Benefit Charges................... 18
Surrender Charge....................................... 18
Partial Withdrawal and Transfer Charges................ 19
Dollar Cost Averaging Service and Portfolio Rebalancing
Service Charges....................................... 19
Modification of Charges................................ 19
The Variable Account...................................... 20
Investments of the Variable Account.................... 20
Performance Information................................ 20
Death Benefit............................................. 21
Guideline Premium Test................................. 21
Death Benefit Options.................................. 22
Level Amount Option (Option A)....................... 22
Illustration of Level Amount Option.................. 22
Variable Amount Option (Option B).................... 23
Illustration of Variable Amount Option............... 23
Which Death Benefit Option to Choose................... 23
Optional Term Insurance Rider.......................... 23
Requested Changes in Face Amount.......................... 24
Increases.............................................. 24
Decreases.............................................. 24
Effect of Requested Changes in Face Amount............. 24
Insurance Protection...................................... 25

2
6

Changing the Death Benefit Option......................... 26
Accelerated Benefit Rider................................. 26
Payment and Allocation of Premiums........................ 27
Issuing the Policy..................................... 27
Coverage............................................. 27
Minimum Initial Premium.............................. 27
Allocating Premiums.................................... 27
Crediting Net Premiums............................... 28
Refunding Premiums................................... 28
Amount and Timing of Premiums.......................... 28
Planned Periodic Premiums.............................. 29
Paying Premiums by Mail................................ 29
Death Benefit Guarantee................................... 29
Requirements for the Death Benefit Guarantee........... 30
Accumulation Value........................................ 31
Illustration of Policy Benefits........................... 31
Specialized Uses of the Policy............................ 32
Policy Lapse and Reinstatement............................ 32
Lapse.................................................. 32
Reinstatement.......................................... 32
Surrender Benefits........................................ 33
Total Surrender........................................ 33
Partial Withdrawal..................................... 33
Effect of Partial Withdrawal......................... 33
Transfers................................................. 34
Telephone/Fax Instructions............................. 34
Excessive Trading...................................... 35
Dollar Cost Averaging Service.......................... 35
Portfolio Rebalancing Service.......................... 36
Transfer Limits........................................ 36
Transfer Charges....................................... 36
Policy Loans.............................................. 36
General................................................ 36
Immediate Effect of Policy Loans....................... 37
Effect on Investment Performance....................... 37
Effect on Policy Coverage.............................. 38
Interest............................................... 38
Repayment of Loan Amount............................... 38
Tax Considerations..................................... 38
Free Look and Conversion Rights........................... 38
Free Look Rights....................................... 38
Not Taken Policies..................................... 38
Conversion Rights...................................... 38
Additional Information on the Investments of the Variable
Account................................................ 39
Investment Limits...................................... 39
Addition, Deletion, or Substitution of Investments..... 39
Voting Rights............................................. 40
Disregarding Voting Instructions....................... 41
Paid-up Life Insurance................................. 41
General Provisions........................................ 41
Ownership.............................................. 41
Proceeds............................................... 41
Beneficiary............................................ 42
Postponement of Payments............................... 42
Settlement Options..................................... 42
Interest on Settlement Options....................... 43
Incontestability....................................... 43

3
7

Misstatement of Age and Sex............................ 43
Suicide................................................ 43
Termination............................................ 43
Amendment.............................................. 44
Reports................................................ 44
Annual Statement..................................... 44
Projection Report.................................... 44
Other Reports........................................ 44
Dividends.............................................. 44
Collateral Assignment.................................. 44
Optional Insurance Benefits............................ 45
Accelerated Benefit Rider............................ 45
Accidental Death Benefit Rider....................... 45
Additional Insured Rider............................. 45
Waiver of Monthly Deduction Rider.................... 45
Cost of Living Increase Rider........................ 45
Total Disability Specified Premium Rider............. 45
Term Rider........................................... 45
Federal Tax Matters....................................... 45
Introduction........................................... 45
Tax Status of the Policy............................... 45
Tax Treatment of Policy Benefits....................... 46
In General........................................... 46
Modified Endowment Contracts......................... 46
Distributions from Modified Endowment Contracts...... 46
Distributions from Policies that are not Modified
Endowment Contracts................................. 47
Policy Loans......................................... 47
Multiple Policies.................................... 47
Business Uses Of Policy.............................. 47
Other Tax Considerations............................. 47
Possible Changes in Taxation........................... 48
Other Considerations................................... 48
Taxation of ReliaStar Life Insurance Company of New
York.................................................. 48
Legal Developments Regarding Employment-Related Benefit
Plans................................................. 48
Distribution of the Policies.............................. 48
Management................................................ 49
Directors and Officers................................. 49
State Regulation.......................................... 54
Legal Proceedings......................................... 54
Bonding Arrangements...................................... 54
Legal Matters............................................. 55
Experts................................................... 55
Registration Statement Contains Further Information....... 55
Financial Statements...................................... 55
Appendices................................................ A-1

THE POLICY MAY NOT BE AVAILABLE IN ALL JURISDICTIONS. THIS PROSPECTUS
CONSTITUTES AN OFFERING OR SOLICITATION ONLY IN THOSE JURISDICTIONS WHERE SUCH
OFFERING OR SOLICITATION MAY LAWFULLY BE MADE.

RELIASTAR HAS NOT AUTHORIZED ANY PERSON TO GIVE ANY INFORMATION OR TO MAKE
ANY REPRESENTATIONS REGARDING THE POLICY OTHER THAN THOSE CONTAINED IN THIS
PROSPECTUS OR THE ACCOMPANYING FUND PROSPECTUSES. DO NOT RELY ON ANY SUCH
INFORMATION OR REPRESENTATIONS.

4
8

DEFINITIONS

ACCUMULATION VALUE. The total value attributable to a specific Policy, which
equals the sum of the Variable Accumulation Value (the total of the values
in each Sub-Account of the Variable Account) and the Fixed Accumulation
Value (the value in the Fixed Account). See "Accumulation Value" at page 31
and Appendix B.

AGE. The Insured's age at the last birthday determined as of the beginning of
each Policy Year.

CASH SURRENDER VALUE. The Accumulation Value less any Surrender Charge, Loan
Amount and unpaid Monthly Deductions.

CASH VALUE. The Accumulation Value less any Surrender Charge.

CODE. Internal Revenue Code of 1986, as amended.

CORRIDOR PERCENTAGE OF ACCUMULATION VALUE: The product of the applicable
Corridor Percentage as shown in the Corridor Percentage Table and the
Accumulation Value on the Valuation Date. See "Death Benefit" at page 21.

CUMULATIVE PREMIUMS: The total of all premium payments received since the issue
of the Policy before the deductions of the Premium Expense Charge.

DEATH BENEFIT. The amount determined under the applicable Death Benefit Option.
We will reduce the proceeds payable to the beneficiary upon the Insured's
death by any Loan Amount and any unpaid Monthly Deductions. See "Death
Benefit" at page 21.

DEATH BENEFIT GUARANTEE. A feature of the Policy guaranteeing that the Policy
will not lapse during the Death Benefit Guarantee Period specified in your
Policy if, on each Monthly Anniversary, the total premiums paid on the
Policy, less any partial withdrawals and any Loan Amount, equals or exceeds
the total required Minimum Monthly Premium payments specified in your
Policy. See "Death Benefit Guarantee" at page 29.

DEATH BENEFIT OPTION. Either of two death benefit options available under the
Policy (the Level Amount Option and the Variable Amount Option). See "Death
Benefit -- Death Benefit Options" at page 22.

FACE AMOUNT. The minimum Death Benefit under the Policy as long as the Policy
remains in force. See "Death Benefit" at page 21.

FIXED ACCOUNT. ReliaStar Life Insurance Company of New York's assets other than
those allocated to the Variable Account or any other separate account. See
Appendix A.

FIXED ACCUMULATION VALUE. The value attributable to a specific Policy based upon
amounts in the Fixed Account. Unlike the Variable Accumulation Value, the
Fixed Accumulation Value will not reflect the investment performance of the
Funds. See "Accumulation Value" at page 31 and Appendix B.

FUNDS. Any open-end management investment company (or portfolio thereof) or unit
investment trust (or series thereof) in which a Sub-Account invests. See
"Investments of the Variable Account" at page 20.

INITIAL PREMIUM TRANSFER DATE. The Initial Premium Transfer Date shown in the
Policy. It is generally 16 days after the print date of the Policy or if
later the date we receive from you final material required to put the
Policy in force.

INSURED. The person upon whose life we issue the Policy.

ISSUE DATE. The date insurance coverage under a Policy begins.

LOAN AMOUNT. The sum of all unpaid Policy loans including unpaid interest due
thereon. See "Policy Loans" at page 36.

MINIMUM MONTHLY PREMIUM. A monthly premium amount that we determine when we
issue the Policy. Your Policy will specify this amount. See "Death Benefit
Guarantee" at page 29.

MONTHLY ANNIVERSARY. The same date in each succeeding month as the Policy Date.
If the Monthly Anniversary falls on a date other than a Valuation Date,
then the Monthly Anniversary will be the next Valuation Date. The first
Monthly Anniversary is on the Policy Date.

5
9

MONTHLY DEDUCTION. A monthly charge that we deduct from the Accumulation Value
of the Policy. See "Deductions and Charges -- Monthly Deduction" at page
17.

NET PREMIUM. The premium you pay less a Premium Expense Charge.

PLANNED PERIODIC PREMIUM. The scheduled premium you select of a level amount at
a fixed interval. The Policy will show the initial Planned Periodic Premium
you select. See "Payment and Allocation of Premiums -- Planned Periodic
Premiums" at page 29.

POLICY. Select(*)Life NY II, the flexible premium variable life insurance policy
described in this prospectus.

POLICY ANNIVERSARY. The same date in each succeeding year as the Policy Date. If
the Policy Anniversary falls on a date other than a Valuation Date, the
Policy Anniversary will be the next Valuation Date.

POLICY DATE. The date shown on your Policy that ReliaStar uses to determine
Policy Years, Policy Months, Monthly Anniversaries and Policy
Anniversaries.

POLICY MONTH. A one-month period beginning on a Monthly Anniversary.

POLICY YEAR. A 12-month period beginning on a Policy Anniversary.

PREMIUM EXPENSE CHARGE. An amount ReliaStar deducts from each premium payment,
resulting in the Net Premium. See "Deductions and Charges -- Premium
Expense Charge" at page 17.

RATE CLASS. A group of Insureds we determine based on our expectation that they
will have similar mortality experience.

SEC. Securities and Exchange Commission.

SIGNATURE GUARANTEE. A guarantee of your signature by a member firm of the New
York, American, Boston, Midwest, Philadelphia, or Pacific Stock Exchange,
or by a commercial bank which is a member of the Federal Deposit Insurance
Corporation, or, in certain cases, by a member firm of the National
Association of Securities Dealers, Inc. that has entered into an
appropriate agreement with us.

SUB-ACCOUNT. A sub-division of the Variable Account that invests exclusively in
the shares of a specified Fund.

SURRENDER CHARGE. A charge imposed upon total surrender or lapse of the Policy.
See "Deductions and Charges -- Surrender Charge" at page 18.

UNIT VALUE. The unit measure by which we determine the value of the Policy's
interest in each Sub-Account. See Appendix B.

VALUATION DATE. Each day the New York Stock Exchange is open for business except
for days that a Sub-Account's corresponding Fund does not value its shares.
The New York Stock Exchange is currently closed on weekends and on the
following holidays: New Year's Day; Rev. Dr. Martin Luther King, Jr. Day;
Presidents' Day; Good Friday; Memorial Day; July Fourth; Labor Day;
Thanksgiving Day; and Christmas Day. See Appendix B.

VALUATION PERIOD. The period beginning at the close of business on a Valuation
Date and ending at the close of business on the next Valuation Date. See
Appendix B.

VARIABLE ACCOUNT. ReliaStar Life Insurance Company of New York Variable Life
Separate Account I, a separate investment account we established to receive
and invest Net Premiums paid under the Policy and other variable life
insurance policies that we issue. See "The Variable Account" at page 20.

VARIABLE ACCUMULATION VALUE. The value attributable to a specific Policy based
upon amounts in the Variable Account. See "Accumulation Value" at page 31
and Appendix B.

WE, US, OUR, THE COMPANY, OR RELIASTAR. ReliaStar Life Insurance Company of New
York.

YOU, YOUR. The Policy owner as designated in the application for the Policy or
as subsequently changed. If a Policy has been absolutely assigned, the
assignee is the Policy owner. A collateral assignee is not the Policy
owner.

6
10

PART 1. SUMMARY

This is a brief summary of the Policy's features. Please read the entire
Prospectus and the Policy for more detailed information.

THE POLICY

Your Policy provides life insurance protection on the Insured. The Policy
includes the basic Policy, applications, and riders or endorsements. As long as
the Policy remains in force, we pay a Death Benefit at the death of the Insured.
While your Policy is in force, you may access a portion of your Cash Surrender
Value by taking loans or partial withdrawals.

Life insurance is not a short-term investment. You should evaluate your
need for life insurance coverage and this Policy's long-term potential and risks
before purchasing a Policy.

We pay compensation to firms for sales of this Policy. See "Distribution of
the Policies."

Under current Federal tax law, as long as the Policy qualifies as life
insurance, Accumulation Value increases will be subject to the same Federal
income tax treatment as traditional life insurance cash values. Therefore, any
increases should accumulate on a tax deferred basis until you request a
distribution. See "Federal Tax Matters -- Tax Status of the Policy." The
following chart outlines the various features, charges and expenses of the
Policies. Additional detailed information pertaining to charges and expenses is
contained in this Summary and in "Deductions and Charges."

[CHART]
How Select * Life NY II Works
PREMIUM PAYMENTS
MINUS
PREMIUM EXPENSE CHARGES
Invested in Variable Sub-Accounts
or Fixed Account

Fixed
Account
Variable Sub-Accounts -------

Neuberger Pilgrim Putnam Janus
AIM Berman OpCap Alger Fidelity(R) GCG

PLUS
INVESTMENT RETURN
(Net of Fund Expenses)
MINUS

- - Monthly Administrative MONTHLY DEDUCTIONS - Monthly Variable
Charge Accumulation Value
Charge
MINUS
- - Cost of Insurance - Optional Benefit Charges
PARTIAL WITHDRAWALS
EQUALS
ACCUMULATION VALUE
Provides Living Benefits
And Death Benefits
LIVING BENEFITS DEATH BENEFITS
ACCUMULATION VALUE ACCUMULATION VALUE
MINUS PLUS
SURRENDER CHARGE NET AMOUNT AT RISK
EQUALS EQUALS
CASH VALUE DEATH BENEFIT
MINUS MINUS
POLICY LOAN POLICY LOAN
EQUALS EQUALS
CASH SURRENDER VALUE DEATH BENEFIT PROCEEDS

7
11

FREE LOOK RIGHTS - If you return the Policy to us by midnight of
the 10th day after you receive it, we will send
you a refund of all premiums paid. See "Free
Look and Conversion Rights -- Free Look Rights."

PREMIUM PAYMENTS - You choose when to pay and how much to pay.
- We may refuse to accept any premium less than
$25.
- You cannot pay additional premiums after age
100.
- We may refuse any premium that would disqualify
your Policy as life insurance under Section 7702
of the Code.
- You may pay enough premiums to maintain the
Death Benefit Guarantee in order to keep the
Policy in force during at least the first
several Policy Years. See "Death Benefit
Guarantee" and "Payment and Allocation of
Premiums -- Amount and Timing of Premiums."
- We deduct a Premium Expense Charge and credit
the remaining premium (the Net Premium) to the
Variable Account or the Fixed Account according
to your instructions. See "Deductions and
Charges -- Premium Expense Charge."

CHARGES AGAINST PREMIUM PAYMENTS

We will deduct the Premium Expense Charge from each premium payment. The
Premium Expense Charge is guaranteed not to exceed 6.00% of each premium payment
in Policy Years 1-10 and 5.00% of each premium after the tenth Policy Year. The
charge is currently 4.75% of each premium payment in Policy Years 1-10 and 4.00%
of each premium after the tenth Policy Year. See "Deductions and
Charges -- Premium Expense Charge."

CHARGES AGAINST THE ACCUMULATION VALUE

The Accumulation Value of the Policy is subject to the Monthly Deduction
charges. Except for the Variable Accumulation Value Charge, we will deduct the
Monthly Deduction each month from both the Fixed Accumulation Value and the
Variable Accumulation Value on a proportionate basis depending on their relative
Accumulation Values at that time. We will deduct the Variable Accumulation Value
Charge on a proportionate basis from each Sub-Account of the Variable Account
depending on their relationship to the Variable Accumulation Value at that time.
See "Deductions and Charges -- Monthly Deduction."

The Monthly Deduction includes:

- A charge for the cost of insurance -- varies based on the Insured's sex,
Age, Rate Class and Face Amount.

- Monthly Administrative Charge -- currently $7.50 per month and guaranteed
not to exceed the product of $5.00 and the ratio (not to exceed 2.00) of
(a) the Consumer Price Index (for all urban households) for the preceding
September to (b) the Consumer Price Index for September 1985.

- Monthly Amount Charge -- varies based on the Insured's sex, Age, Rate
Class, and Face Amount and is assessed during the first 10 Policy Years
(and first 10 years after a Face Amount Increase). The maximum amount of
this charge is $3.8620 per $1,000 of Face Amount for a male Issue Age 85
in a Tobacco class.

- Monthly Variable Accumulation Value Charge -- currently equal to an
annual rate of .40 of 1% (.40%) of the Variable Accumulation Value and
guaranteed not to exceed an annual rate of .60 of 1% (.60%) of the
Variable Accumulation Value.

- Any charges for optional insurance benefits -- vary depending upon the
benefit(s) selected. These charges also may vary based on the insured's
sex, age, rate class, and amount of the benefit chosen.

CHARGES UPON LAPSE OR TOTAL SURRENDER OF THE POLICY

- We assess a Surrender Charge if your Policy lapses or if you surrender
the Policy during the first 10 Policy Years (or during the first 10 years
following a Face Amount increase).

8
12

- We will determine the maximum Surrender Charge for the initial Face
Amount and any requested increases in Face Amount on the Policy Date and
on the effective date of any such requested increase. The maximum amount
of the Surrender Charge is $25.57 per one thousand of Face Amount for a
male Insured at Issue Age 75.

- The Surrender Charge for the initial Face Amount will depend on the
initial Face Amount, the Insured's Age on the Policy Date, and the
Insured's sex and Rate Class.

- You do not pay this charge if the Policy remains in force during the
entire relevant 10-year period. See "Deductions and Charges -- Surrender
Charge."

TRANSFER AND PARTIAL WITHDRAWAL CHARGES

We currently make no charge for the first 24 transfers in a Policy Year and
assess a $10 charge for each partial withdrawal. These charges are guaranteed
not to exceed $25 per transfer in excess of twelve transfers per Policy Year, or
$25 per partial withdrawal, for the duration of the Policy. The transfer charge
will not be imposed on transfers that occur as a result of Policy loans, the
exercise of conversion rights, the Dollar Cost Averaging or Portfolio
Rebalancing Service, or automatic withdrawals.

INVESTMENT ADVISORY FEES AND OTHER FUND EXPENSES

Because the Variable Account purchases shares of the Funds, the net asset
value of the Variable Account's investments will reflect the investment advisory
fees and other expenses incurred by the Funds. Set forth below is information
provided by each Fund on its total annual expenses as of December 31, 2000 (as a
percentage of the Fund's average net assets). See the prospectuses for the Funds
for more information concerning these expenses.

INVESTMENT TOTAL FEES AND TOTAL NET
MANAGEMENT OTHER PORTFOLIO EXPENSES WAIVED PORTFOLIO
PORTFOLIO FEES EXPENSES EXPENSES OR REIMBURSED EXPENSES
--------- ---------- -------- --------- --------------- ---------

AIM VARIABLE INSURANCE FUNDS
AIM V.I. Dent Demographic Trends
Fund (a)(b)............................... 0.85% 0.78% 1.63% 0.13% 1.50%
THE ALGER AMERICAN FUND
Alger American Growth Portfolio (a)......... 0.75% 0.04% 0.79% N/A 0.79%
Alger American Leveraged AllCap Portfolio
(a)....................................... 0.85% 0.05% 0.90% N/A 0.90%
Alger American MidCap Growth Portfolio
(a)....................................... 0.80% 0.04% 0.84% N/A 0.84%
Alger American Small Capitalization
Portfolio (a)............................. 0.85% 0.05% 0.90% N/A 0.90%
FIDELITY VARIABLE INSURANCE PRODUCTS FUND
Fidelity VIP Equity-Income Portfolio --
Initial Class (a)(d)...................... 0.48% 0.08% 0.56% N/A 0.56%
Fidelity VIP Growth Portfolio --
Initial Class (a)(d)...................... 0.57% 0.08% 0.65% N/A 0.65%
Fidelity VIP High Income Portfolio --
Initial Class (a)(d)...................... 0.58% 0.10% 0.68% N/A 0.68%
Fidelity VIP Money Market Portfolio --
Initial Class (c)......................... 0.27% 0.08% 0.35% N/A 0.35%
Fidelity VIP II Contrafund Portfolio --
Initial Class (a)(d)...................... 0.57% 0.09% 0.66% N/A 0.66%
Fidelity VIP II Index 500 Portfolio --
Initial Class (a)(e)...................... 0.24% 0.09% 0.33% N/A 0.33%
Fidelity VIP II Investment Grade Bond
Portfolio -- Initial Class (a)............ 0.43% 0.11% 0.54% N/A 0.54%
THE GCG TRUST
Fully Managed Series........................ 0.94% 0.01% 0.95% N/A 0.95%
Mid-Cap Growth Series....................... 0.88% 0.01% 0.89% N/A 0.89%
JANUS ASPEN SERIES
Janus Aspen Aggressive Growth
Portfolio (a)(f).......................... 0.65% 0.01% 0.66% N/A 0.66%
Janus Aspen Growth Portfolio (a)(f)......... 0.65% 0.02% 0.67% N/A 0.67%

9
13

Janus Aspen International Growth
Portfolio (a)(f).......................... 0.65% 0.06% 0.71% N/A 0.71%
Janus Aspen Worldwide Growth
Portfolio (a)(f).......................... 0.65% 0.04% 0.69% N/A 0.69%
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST
Neuberger Berman Advisers Management Trust
Limited Maturity Bond Portfolio (a)....... 0.65% 0.11% 0.76% N/A 0.76%
Neuberger Berman Advisers Management Trust
Partners Portfolio (a).................... 0.82% 0.10% 0.92% N/A 0.92%
Neuberger Berman Advisers Management Trust
Socially Responsive Portfolio (a)(g)...... 0.85% 1.55% 2.40% 0.86% 1.54%
OCC ACCUMULATION TRUST
OCC Equity Portfolio (a)(h)................. 0.80% 0.15% 0.95% N/A 0.95%
OCC Global Equity Portfolio (a)(h).......... 0.80% 0.34% 1.14% N/A 1.14%
OCC Managed Portfolio (a)(h)................ 0.78% 0.08% 0.86% N/A 0.86%
OCC Small Cap Portfolio (a)(h).............. 0.80% 0.10% 0.90% N/A 0.90%
PILGRIM VARIABLE PRODUCTS TRUST
Pilgrim VP Growth Opportunities
Portfolio (i)(j).......................... 0.75% 1.44% 2.19% 1.29% 0.90%
Pilgrim VP Growth + Value Portfolio
(i)(j).................................... 0.75% 0.18% 0.93% 0.13% 0.80%
Pilgrim VP High Yield Bond Portfolio
(i)(j).................................... 0.75% 0.38% 1.13% 0.33% 0.80%
Pilgrim VP International Value Portfolio
(i)(j).................................... 1.00% 0.44% 1.44% 0.44% 1.00%
Pilgrim VP MagnaCap Portfolio (i)(j)........ 0.75% 7.15% 7.90% 7.00% 0.90%
Pilgrim VP MidCap Opportunities
Portfolio (i)(j).......................... 0.75% 5.01% 5.76% 4.86% 0.90%
Pilgrim VP Research Enhanced Index
Portfolio (i)(j).......................... 0.75% 0.43% 1.18% 0.28% 0.90%
Pilgrim VP SmallCap Opportunities
Portfolio (i)(j).......................... 0.75% 0.23% 0.98% 0.08% 0.90%
PUTNAM VARIABLE TRUST
Putnam VT Growth and Income Fund
Class IA Shares........................... 0.46% 0.04% 0.50% N/A 0.50%
Putnam VT New Opportunities Fund --
Class IA Shares........................... 0.52% 0.05% 0.57% N/A 0.57%
Putnam VT Small Cap Value Fund --
Class IA Shares........................... 0.80% 0.30% 1.10% N/A 1.10%
Putnam VT Voyager Fund -- Class IA Shares... 0.51% 0.05% 0.56% N/A 0.56%

- -------------------------

(a)The Company or its affiliates may receive compensation from an affiliate or
affiliates of certain of the Funds based upon an annual percentage of the
average net assets held in that Fund by the Company and by certain of the
Company's insurance company affiliates. These amounts are intended to
compensate the Company or the Company's affiliates for administrative,
recordkeeping, and other services provided by the Company and its affiliates
to Funds and/or the Funds' affiliates. Payments of such amounts by an
affiliate or affiliates of the Funds do not increase the fees paid by the
Funds or their shareholders. The percentage paid may vary from one Fund
company to another. The amounts we receive under these agreements may be
significant.

(b)Expenses have been restated to reflect current fees. The investment advisor
has agreed to waive fees and/or reimburse expenses (excluding interest,
taxes, dividend expense on short sales, extraordinary items and increases in
expenses due to expense offset arrangements, if any) to limit total annual
fund operating expenses to 1.50% of average daily net assets until December
31, 2001. Total annual fund operating expenses before waivers were 1.63%.

(c)The annual class operating expenses provided are based on historical
expenses, adjusted to reflect the current management fee structure.

10
14

(d)Actual annual class operating expenses were lower because a portion of the
brokerage commissions that the fund paid was used to reduce the fund's
expenses, and/or because through arrangements with the fund's custodian,
credits realized as a result of uninvested cash balances were used to reduce
a portion of the fund's custodian expenses. See the accompanying fund
prospectus for details.

(e)The fund's manager has voluntarily agreed to reimburse the class's expenses
if they exceed a certain level. Including this reimbursement, the annual
class operating expenses were 0.28%. This arrangement may be discontinued by
the fund's manager at any time.

(f)Expenses are based upon expenses for the fiscal year ended December 31, 2000,
restated to reflect a reduction in the management fee for Growth, Aggressive
Growth, International Growth and Worldwide Growth Portfolios. All expenses
are shown without the effect of any expense offset arrangements.

(g)Neuberger Berman Management Inc. ("NBMI") has undertaken through April 30,
2002 to reimburse certain operating expenses, including the compensation of
NBMI and excluding taxes, interest, extraordinary expenses, brokerage
commissions and transaction costs, that exceed, in the aggregate, 1.50% of
the average daily net asset value of the Socially Responsive Portfolio. The
expense reimbursement agreement with respect to the Socially Responsive
Portfolio provides for NBMI to recoup through December 31, 2005 amounts
reimbursed by NBMI under the agreement, provided such recoupment would not
cause the Portfolio to exceed its expense limitation.

(h)Management Fees reflect effective management fees before taking into effect
any fee waiver. Other Expenses are shown before expense offsets afforded the
Portfolios. Total Portfolio Expenses for the Equity, Small Cap and Managed
Portfolios are limited by OpCap Advisors so that their respective annualized
operating expenses (net of any expense offset) do not exceed 1.00% of average
daily net assets. Total Portfolio Expenses for the Global Equity Portfolio
are limited to 1.25% of average daily net assets.

(i)The table shows the estimated operating expenses for each Portfolio as a
ratio of expenses to average daily net assets. These estimates are based on
each Portfolio's actual operating expenses for its most recently completed
fiscal year and fee waivers to which the Adviser has agreed for each
Portfolio.

(j)ING Pilgrim Investments has entered into written expense limitation
agreements with each Portfolio which it advises under which it will limit
expenses of the Portfolio, excluding interest, taxes, brokerage and
extraordinary expenses, subject to possible reimbursement to ING Pilgrim
Investments within three years. The expense limit for each such Fund is shown
as "Total Net Portfolio Expenses." For each Portfolio, the expense limits
will continue through at least December 31, 2001.

THE VARIABLE ACCOUNT
(RELIASTAR
LIFE INSURANCE COMPANY OF
NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I) - ReliaStar Life Insurance Company of New York
Variable Life Separate Account I is one of our
separate accounts and consists of several
Sub-Accounts. We only invest premiums from our
variable life insurance policies in the Variable
Account.
- We invest any Net Premiums you allocate to each
Sub-Account in shares of the Fund related to
that Sub-Account.
- Variable Accumulation Value will vary with the
investment performance of the Funds and the
charges deducted from the Variable Accumulation
Value. See "Accumulation Value."

THE FIXED ACCOUNT - Consists of all of our assets other than those
in our separate accounts (including the Variable
Account).
- We credit interest of at least 4% per year on
any amounts you allocate to the Fixed Account.
- We may, in our sole discretion, credit interest
in excess of 4%. See Appendix A, "The Fixed
Account."

THE FUNDS - You can instruct ReliaStar to place your Net
Premium in, or transfer to, up to 17 of 37
investment portfolios over the lifetime of your
Policy.

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15

The following chart lists the currently available Funds and outlines
certain of their important characteristics.

INVESTMENT FUNDS

- ----------------------------------------------------------------------------------------------------------------------
FUND GROUP FUND ADVISER/ MONEY FIXED GROWTH INTERNATIONAL
SUBADVISER MARKET INCOME &
INCOME

- ----------------------------------------------------------------------------------------------------------------------
AIM AIM V.I. Dent A I M
Variable Demographic Advisors, Inc./
Insurance Trends Fund H.S. Dent Advisors,
Funds Inc.
Houston, TX
- ----------------------------------------------------------------------------------------------------------------------
The Alger Alger American Growth Fred Alger
American Fund Portfolio Management, Inc.
New York, N.Y.
---------------------------------------------------------------------------------------------------
Alger American Fred Alger
Leveraged All Cap Management, Inc.
Portfolio
---------------------------------------------------------------------------------------------------
Alger American MidCap Fred Alger
Growth Portfolio Management, Inc.
---------------------------------------------------------------------------------------------------
Alger American Small Fred Alger
Capitalization Management, Inc.
Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Fidelity VIP Fidelity Management
Investments(R) Equity-Income & Research Company
Boston, Mass. Portfolio -- Initial X
Class
---------------------------------------------------------------------------------------------------
VIP Growth Fidelity Management
Portfolio -- & Research Company
Initial Class
---------------------------------------------------------------------------------------------------
X
VIP Fidelity Management
High Income & Research Company
Portfolio --
Initial Class
---------------------------------------------------------------------------------------------------
X
VIP Fidelity Management
Money Market & Research Company
Portfolio -- Initial
Class
---------------------------------------------------------------------------------------------------
VIP II Contrafund(R) Fidelity Management
Portfolio -- Initial & Research Company
Class
---------------------------------------------------------------------------------------------------
X
VIP II Fidelity Management
Index 500 Portfolio -- & Research Company
Initial Class
---------------------------------------------------------------------------------------------------
Fidelity VIP II Fidelity Management
Investments(R) Investment Grade Bond & Research Company
is a Portfolio -- Initial
registered Class
trademark of
FMR Corp. X
- ----------------------------------------------------------------------------------------------------------------------
The GCG Trust Fully Managed T. Rowe Price
West Chester, Portfolio Associates Inc.
PA
---------------------------------------------------------------------------------------------------
Mid-Cap Massachusetts
Growth Financial
Portfolio Services
Company
- ----------------------------------------------------------------------------------------------------------------------

- -------------- -----------------------------------------------------------------------------------
FUND GROUP BALANCED GROWTH AGGRESSIVE OBJECTIVE(S)
GROWTH PRIMARY
INVESTMENTS

- -------------- -----------------------------------------------------------------------------------
AIM Long-term growth Securities of
Variable of capital companies that are
Insurance likely to benefit
Funds from changing
Houston, TX X demographic,
economic and
lifestyle trends
- -------------- -----------------------------------------------------------------------------------
The Alger Long-term capital Equity securities
American Fund appreciation of large companies
New York, N.Y. X
-----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
X
Long-term capital Equity securities
appreciation of companies of any
size
-----------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
X
Long-term capital Equity securities
appreciation within the range of
S&P(R) MidCap 400
Index
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Equity securities
appreciation within the range of
Russell(R) 2000
Growth or S&P(R)
SmallCap 600
Indexes
- -------------- -----------------------------------------------------------------------------------
Fidelity Reasonable Income-producing
Investments(R) income; also equity securities
Boston, Mass. considers and debt
potential for obligations
capital
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Common stocks
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
High current Income-producing
income debt securities,
preferred stocks
and convertible
securities, with an
emphasis on lower-
quality debt
securities commonly
known as junk bonds
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
High current U.S. dollar-
income consistent denominated money
with preservation market securities
of capital and
liquidity
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Securities of
appreciation companies whose
value the adviser
believes is not
fully recognized by
the public
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Total return that Common stocks of
corresponds to S&P 500
that of S&P 500
Index
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Fidelity High current Investment-grade
Investments(R) income consistent intermediate fixed
is a with preservation income securities
registered of capital
trademark of
FMR Corp.
- -------------- -----------------------------------------------------------------------------------
The GCG Trust Over the long At least 50% in
West Chester, term, a high common stock of
PA X total investment established
return, companies;
consistent with remaining assets in
the preservation debt and other
of capital and securities
with prudent
investment risk
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term growth Common stocks of
of capital mid-sized U.S.
companies
- -------------- -----------------------------------------------------------------------------------

12
16

- ----------------------------------------------------------------------------------------------------------------------
GROWTH
ADVISER/ MONEY FIXED &
FUND GROUP FUND SUBADVISER MARKET INCOME INCOME INTERNATIONAL

- ----------------------------------------------------------------------------------------------------------------------
Janus Aspen Series Janus Capital
Denver, Colo. Aggressive Corporation
Growth Portfolio
---------------------------------------------------------------------------------------------------
Aspen Series Growth Janus Capital
Portfolio Corporation
---------------------------------------------------------------------------------------------------
X
Aspen Series Janus Capital
International Growth Corporation
Portfolio
---------------------------------------------------------------------------------------------------
X
Aspen Series Worldwide Janus Capital
Growth Portfolio Corporation
- ----------------------------------------------------------------------------------------------------------------------
Neuberger Advisers Management Neuberger Berman
Berman Trust Limited Maturity Management/
New York, N.Y. Bond Portfolio Neuberger Berman, X
LLC
---------------------------------------------------------------------------------------------------
Advisers Management Neuberger Berman
Trust Partners Management/
Portfolio Neuberger Berman
LLC
---------------------------------------------------------------------------------------------------
Advisers Management Neuberger Berman
Trust Socially Management/
Responsive Portfolio Neuberger Berman,
LLC
- ----------------------------------------------------------------------------------------------------------------------
OCC OCC Accumulation Trust OpCap Advisors
New York, N.Y. Equity Portfolio
---------------------------------------------------------------------------------------------------
X
OCC Accumulation Trust OpCap Advisors
Global Equity
Portfolio
---------------------------------------------------------------------------------------------------
OCC Accumulation Trust OpCap Advisors
Managed Portfolio
---------------------------------------------------------------------------------------------------
OCC Accumulation Trust OpCap Advisors
Small Cap Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Pilgrim Pilgrim VP Growth ING Pilgrim
Scottsdale, Opportunities Investments, LLC
Ariz. Portfolio
---------------------------------------------------------------------------------------------------
Pilgrim VP Growth + ING Pilgrim
Value Portfolio Investments,
LLC/Navellier Fund
Management, Inc.
---------------------------------------------------------------------------------------------------
X
Pilgrim VP High Yield ING Pilgrim
Bond Portfolio Investments, LLC
---------------------------------------------------------------------------------------------------
X
Pilgrim VP ING Pilgrim
International Value Investments, LLC/
Portfolio Brandes Investment
Partners, L.P.
---------------------------------------------------------------------------------------------------
X
Pilgrim VP MagnaCap ING Pilgrim
Portfolio Investments, LLC
---------------------------------------------------------------------------------------------------
Pilgrim VP MidCap ING Pilgrim
Opportunities Investments, LLC
Portfolio
- ----------------------------------------------------------------------------------------------------------------------

- -------------- -----------------------------------------------------------------------------------

AGGRESSIVE PRIMARY
FUND GROUP BALANCED GROWTH GROWTH OBJECTIVE(S) INVESTMENTS

- -------------- -----------------------------------------------------------------------------------
Janus Long-term growth Nondiversified
Denver, Colo. X of capital portfolio of common
stocks(1)
-----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
X
Long-term growth Diversified common
of capital in a stocks
manner consistent
with the
preservation of
capital
-----------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
Long-term capital Foreign issuers of
growth common stocks
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term growth Foreign and
of capital in a domestic common
manner consistent stocks
with the
preservation of
capital
- -------------- -----------------------------------------------------------------------------------
Neuberger Highest current Short-to-
Berman income consistent intermediate term
New York, N.Y. with low risk to investment-grade
principal and debt securities
liquidity and
secondarily total
return
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital growth Common stocks of
medium-and-large
capitalization
companies
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Common stocks of
growth companies that meet
both financial and
social criteria
- -------------- -----------------------------------------------------------------------------------
OCC Long-term capital Equity securities
New York, N.Y. X appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term capital Global investments
appreciation in equity
securities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Growth of capital Common stocks,
fixed income
securities and cash
equivalent
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Equity securities
appreciation of companies under
$2 billion
- -------------- -----------------------------------------------------------------------------------
Pilgrim Long-term capital Common stocks of
Scottsdale, growth large cap, mid cap
Ariz. X or small cap
companies
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Equity securities
appreciation from
investing in a
diversified
portfolio of
equity securities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
High current High-yield bonds
yield and capital
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Long-term capital International
appreciation equities
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
Capital growth Common stocks
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Long-term capital Common stocks of
appreciation mid-sized U.S.
companies
- -------------- -----------------------------------------------------------------------------------

(1)A non-diversified portfolio is a portfolio that may hold a larger position in
a smaller number of securities than a diversified portfolio. This means that
a single security's increase or decrease in value may have a greater impact
on the return and net asset value of a non-diversified portfolio than a
diversified portfolio.

13
17

- ----------------------------------------------------------------------------------------------------------------------
Pilgrim Pilgrim VP Research ING Pilgrim
Scottsdale, Enhanced Index Investments, LLC/
Ariz. Portfolio J.P. Morgan
Investment
Management Inc.
---------------------------------------------------------------------------------------------------
Pilgrim VP SmallCap ING Pilgrim
Opportunities Investments, LLC
Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Putnam Putnam VT Growth and Putnam Investment
Investments, Income Fund -- Class Management, LLC
LLC IA Shares
Boston, Mass. X
---------------------------------------------------------------------------------------------------
Putnam VT New Putnam Investment
Opportunities Fund -- Management, LLC
Class IA Shares
---------------------------------------------------------------------------------------------------
Putnam VT Voyager Putnam Investment
Fund -- Class IA Management, LLC
Shares
---------------------------------------------------------------------------------------------------
Putnam VT Small Cap Putnam Investment
Value Fund -- Class IA Management, LLC
Shares
- ----------------------------------------------------------------------------------------------------------------------

- -------------- -----------------------------------------------------------------------------------

AGGRESSIVE PRIMARY
FUND GROUP BALANCED GROWTH GROWTH OBJECTIVE(S) INVESTMENTS

- -------------- -----------------------------------------------------------------------------------
Pilgrim Long-term capital Common stocks
Scottsdale, appreciation
Ariz. X
-----------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
X
Long-term capital Common stocks
appreciation
- -------------- -----------------------------------------------------------------------------------
Putnam Capital growth & Value stocks
Investments, current income
LLC
Boston, Mass.
-----------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
X
Long-term capital Growth stocks
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Growth stocks
appreciation
-----------------------------------------------------------------------------------
---------------------------------------------------------------------------------------------------
X
Capital Value stocks
appreciation
- -------------- -----------------------------------------------------------------------------------

For each Fund's expenses, see "Investment Advisory Fees and Other Fund
Expenses."

SURRENDERS - In general, you will receive the Cash Surrender Value if
you surrender the Policy.

- To determine the Cash Surrender Value, we reduce your
Accumulation Value by the Surrender Charge, if any, and
any Loan Amount and unpaid Monthly Deductions. See
"Surrender Benefits -- Total Surrender."

- Surrendering the Policy may have tax consequences. See
"Federal Tax Matters."

PARTIAL WITHDRAWALS - Once each Policy Year after the first Policy Year, you
can withdraw part of your Cash Surrender Value.
- You will not incur a Surrender Charge, but partial
withdrawals are subject to a processing charge (currently
$10, guaranteed not to exceed $25). See "Surrender
Benefits -- Partial Withdrawal."

- Partial withdrawals may reduce your Policy's Death
Benefit and will reduce your Accumulation Value.

- Partial withdrawals may also have tax consequences. See
"Federal Tax Matters."

LOANS - After the first Policy Year, you can borrow up to 100% of
your Policy's Cash Value less any existing Loan Amount.
- Interest is payable in advance for each Policy Year and
accrues daily at an effective annual rate that will not
exceed 5.66%.
- After the 10th Policy Year, we currently charge interest
at an annual rate of 3.85% on the portion of your Loan
Amount that is not in excess of (1) the Accumulation
Value, less (2) the total of all premiums paid net of all
partial withdrawals. We will charge interest at an annual
rate of 5.66% on any excess of this amount.

- Policy loans may have tax consequences. See "Federal Tax
Matters."

TRANSFERS - Currently, you can transfer all or part of your
Accumulation Value among the investment options.
- We currently do not limit the number of transfers per
Policy Year. We reserve the right to limit you to 12
transfers per year.
- There are certain restrictions on transfers from the
Fixed Account.
- We currently assess a charge of $25 for each transfer in
excess of 24 transfers per Policy Year. See "Transfers."

14
18

DOLLAR COST AVERAGING
SERVICE AND PORTFOLIO
REBALANCING SERVICE - We currently make no charge for these services, although
we reserve the right to charge for these services in the
future.

DEATH BENEFIT OVERVIEW

You may choose one of two Death Benefit Options:

- Level Amount Option -- whereby the Death Benefit until Age 100 is the
greater of the Face Amount or the corridor percentage of Accumulation
Value; or

- Variable Amount Option -- whereby the Death Benefit until Age 100 is
equal to the greater of the Face Amount plus the Accumulation Value, or
the corridor percentage of Accumulation Value.

The Death Benefit until Age 100 under the Level Amount Option and the
Variable Amount Option will never be less than the Face Amount as long as the
Policy is in force and there is no Loan Amount or unpaid Monthly Deductions.

The Death Benefit after Age 100 is the corridor percentage of Accumulation
Value.

We will reduce the proceeds payable upon the death of the Insured under any
Death Benefit Option by any Loan Amount and any unpaid Monthly Deductions.

Under certain circumstances, you may receive a part of the Death Benefit
when the Insured has been diagnosed as having a terminal illness. See "Death
Benefit -- Accelerated Benefit Rider."

ADJUSTING THE DEATH BENEFIT

Although we reserve the right to limit Face Amount increases and decreases
during the first Policy Year, you have flexibility to adjust the Death Benefit
by increasing or decreasing the Face Amount. You cannot decrease the Face Amount
below the Minimum Face Amount shown in the Policy. Any increase in the Face
Amount may require additional evidence of insurability satisfactory to us and
will result in additional charges. See "Death Benefit -- Requested Changes in
Face Amount."

Generally, you may also change the Death Benefit Option at any time after
the first Policy Year. See "Death Benefit -- Changing the Death Benefit Option."

See "Death Benefit -- Insurance Protection" for a discussion of available
techniques to adjust the amount of insurance protection to satisfy changing
insurance needs.

Adjusting the Death Benefit may have tax consequences. You should consult a
tax adviser before adjusting the Death Benefit.

DEATH BENEFIT GUARANTEES

We offer two Death Benefit Guarantees. If you meet the requirements for a
Death Benefit Guarantee, we will not lapse your Policy during the Death Benefit
Guarantee Period even if the Cash Surrender Value is not sufficient to cover the
Monthly Deduction that is due. See "Death Benefit Guarantees."

LAPSE

If a Death Benefit Guarantee is not in effect, the Policy will lapse if the
Cash Surrender Value is less than the Monthly Deduction due and if you do not
make a sufficient payment during the grace period of 61 days. See "Policy Lapse
and Reinstatement."

TAXATION OF DEATH BENEFIT PROCEEDS

Under current Federal tax law, as long as the Policy qualifies as life
insurance, the Death Benefit under the Policy will be subject to the same
Federal income tax treatment as proceeds of traditional life insurance.

15
19

Therefore, the Death Benefit should not be taxable income to the beneficiary.
See "Federal Tax Matters -- Tax Status of the Policy."

TAXATION OF THE POLICY

The Company believes it is reasonable to conclude that the Policy satisfies
the definition of a life insurance contract under Section 7702 of the Code.
Under certain circumstances, a Policy could be treated as a "Modified Endowment
Contract." The Company will monitor Policies and will attempt to notify an owner
within one month of the date of any Policy transaction which place his or her
Policy is in jeopardy of becoming a Modified Endowment Contract. See "Federal
Tax Matters" for further discussion of the tax status of a Policy and the tax
consequences of being treated as a life insurance contract or a Modified
Endowment Contract.

A Policy lapse, surrender, partial withdrawal or loan may have adverse tax
consequences in certain circumstances. See "Federal Tax Matters."

PART 2. DETAILED INFORMATION

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

ReliaStar Life Insurance Company of New York is a stock life insurance
company incorporated under the laws of the State of New York in 1917. We are a
wholly-owned subsidiary of ReliaStar Financial Corp. We offer individual life
insurance and annuities. Our home office is located at 1000 Woodbury Road, Suite
102, P.O. Box 9004, Woodbury, New York 11797. We are an indirect, wholly owned
subsidiary of ING Groep, N.V. ING is a global financial institution active in
the field of insurance, banking, and asset management in more than 60 countries,
with almost 106,000 employees.

From time to time, we may publish in advertisements, sales literature, and
reports the ratings and other information assigned to us by one or more
independent rating organizations such as A.M. Best Company, Standard & Poor's,
Moody's, and Duff & Phelps. The purpose of the ratings is to reflect our
financial strength and/or claims-paying ability. They should not be considered
as bearing on the investments held in the Variable Account. Each year the A.M.
Best Company reviews the financial status of many insurers, culminating in the
assignment of Best's Ratings. These ratings reflect their current opinion of the
relative financial strength and operating performance of an insurance company in
comparison to the norms of the life/health insurance industry. We have been
assigned a rating of A+ by A.M. Best, which is a rating assigned to companies
demonstrating superior overall performance and a very strong ability to meet
obligations to Policy holders over a long period. Such ratings do not reflect
the investment in the Variable Account.

ReliaStar is a charter member of the Insurance Marketplace Standards
Association ("IMSA"). Companies that belong to IMSA subscribe to a rigorous set
of standards that cover the various aspects of sales and service for
individually sold life insurance and annuities. IMSA members have adopted
policies and procedures that demonstrate a commitment to honesty, fairness and
integrity in all customer contacts involving sales and service of individual
life insurance and annuity products.

THE POLICIES

The Policies are flexible premium variable life insurance contracts with
death benefits, cash values, and other features of traditional life insurance
contracts.

DEDUCTIONS AND CHARGES

We deduct certain charges in connection with the Policy to compensate us
for (1) providing the insurance benefits of the Policy (including any riders),
(2) administering the Policy, (3) assuming certain risks in connection with the
Policy, and (4) incurring expenses in distributing the Policy.

We deduct some of these charges from each premium payment. We deduct
certain other charges monthly from both the Fixed Account and the Variable
Account, or from the Variable Account only. We also

16
20

assess a charge for each partial withdrawal and a charge for each transfer in
excess of 24 transfers per Policy Year.

We may realize a profit on one or more of these charges, such as the
Variable Accumulation Value Charge. We may use any such profits for any proper
corporate purpose, including, among other things, payments of sales expenses.

The Surrender Charge usually exceeds the Accumulation Value in the early
Policy Years. This occurs because the Surrender Charge is usually more than the
accumulated Minimum Monthly Premiums less Policy charges in the early Policy
Years.

PREMIUM EXPENSE CHARGE

We deduct the Premium Expense Charge from each premium payment. The Premium
Expense Charge is currently 4.75% of each premium payment during the first 10
Policy Years and 4.00% of each premium payment thereafter. The Premium Expense
Charge is guaranteed not to exceed 6.00% of each premium payment during the
first 10 Policy Years and 5.00% of each premium payment thereafter. The amount
remaining after we deduct the Premium Expense Charge is called the Net Premium.

This charge compensates us for the costs we incur in selling the Policy and
for the costs of various state and local taxes, as well as the cost of the
federal income tax on imputed deferred acquisition costs.

MONTHLY DEDUCTION

We deduct the charges described below from the Accumulation Value of the
Policy on a monthly basis. The total of these charges is called the Monthly
Deduction.

We will deduct the Monthly Deduction on each Monthly Anniversary from the
Fixed Account and the Sub-Accounts of the Variable Account on a proportionate
basis depending on their relative Accumulation Values at that time. For purposes
of determining these proportions, we reduce the Fixed Accumulation Value by the
Loan Amount. Because the Cost of Insurance portion of the Monthly Deduction can
vary from month to month, the Monthly Deduction itself will vary in amount from
month to month.

If the Cash Surrender Value is not sufficient to cover the Monthly
Deduction on a Monthly Anniversary, the Policy may lapse. See "Death Benefit
Guarantee" and "Policy Lapse and Reinstatement."

COST OF INSURANCE. We will determine the monthly Cost of Insurance by
multiplying the applicable Cost of Insurance rate or rates by the net amount at
risk under the Policy. The net amount at risk under the Policy for a Policy
Month is (1) the Death Benefit at the beginning of the Policy Month divided by
1.003274 (which reduces the net amount at risk, solely for purposes of computing
the Cost of Insurance, by taking into account assumed monthly earnings at an
annual rate of 4%), less (2) the Accumulation Value at the beginning of the
Policy Month (reduced by any charges for rider benefits). As a result, the net
amount at risk may be affected by changes in the Accumulation Value or in the
Death Benefit.

The Rate Class of an Insured may affect the Cost of Insurance. We currently
place Insureds into standard Rate Classes or into substandard Rate Classes that
involve a higher mortality risk. In an otherwise identical Policy, an Insured in
a standard Rate Class will have a lower Cost of Insurance than an Insured in a
Rate Class with higher mortality risks.

If there is an increase in the Face Amount and the Rate Class applicable to
the increase is different from that for the initial Face Amount or any prior
requested increases in Face Amount, the net amount at risk will be calculated
separately for each Rate Class. For purposes of determining the net amount at
risk for each Rate Class, we will first assume the Accumulation Value to be part
of the initial Face Amount. If the Accumulation Value is greater than the
initial Face Amount, it will then be assumed to be part of each increase in
order, starting with the first increase.

We base Cost of Insurance rates on the sex, Age, Policy Year and Rate
Class(es) of the Insured. The actual monthly Cost of Insurance rates will
reflect our expectations as to future experience. They will not,

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however, be greater than the guaranteed Cost of Insurance rates shown in the
Policy, which are based on the Commissioner's 1980 Standard Ordinary Mortality
Tables for smokers or nonsmokers, respectively.

MONTHLY ADMINISTRATIVE CHARGE. Each month we deduct an administrative
charge which is currently $7.50, and is guaranteed not to exceed the product of
$5.00 and the ratio (not to exceed 2.00) of (a) the Consumer Price Index (for
all urban households) for the preceding September to (b) the Consumer Price
Index for September 1985.

MONTHLY AMOUNT CHARGE. Each month during the first 10 Policy Years (and for
10 years following any requested increase in Face Amount) we deduct a monthly
charge per $1,000 of Face Amount. The amount of this charge will vary by the
Insured's sex, Age, Rate Class, and Face Amount on the Policy Date (or on the
effective date of any Face Amount increase). These Monthly Amount Charges are
shown in Appendix D. Any decreases in Face Amount or any change in Face Amount
resulting from a change in the Death Benefit Option will not affect the Monthly
Amount Charge. The maximum amount of this charge is $3.8620 per $1,000 of Face
Amount for a male Issue Age 85 in a Tobacco class. This charge compensates us
for expenses relating to the distribution of the Policy, including agents'
commissions, advertising, and the printing of the prospectus and sales
literature for new sales of the Policy. A portion of this charge may also
contribute to Company Profits.

MONTHLY VARIABLE ACCUMULATION VALUE CHARGE. Each month we currently deduct
this charge at an annual rate of .40 of 1% (.40%) of the Variable Accumulation
Value but in no event will it exceed .60 of 1% (.60%). The mortality and expense
risk we assume is that our Cost of Insurance charges and other expense charges
are not sufficient to cover our costs of death benefits, and any other expenses
incurred in issuing and administering the Policies.

OPTIONAL INSURANCE BENEFIT CHARGES. Each month we deduct charges for any
optional insurance benefits added to the Policy by rider. See "General
Provisions -- Optional Insurance Benefits."

SURRENDER CHARGE

During the first 10 years the Policy is in force and the first 10 years
following a requested increase in the Face Amount, there is a Surrender Charge
if you surrender the Policy or the Policy lapses. We will determine the maximum
Surrender Charge for the initial Face Amount or any requested increase in Face
Amount on the Policy Date or on the effective date of any requested increase.
The Surrender Charge reduces in equal monthly increments until it becomes zero
at the end of 10 years. Thus, if the Policy remains in force during the entire
relevant 10-year period, you do not pay the Surrender Charge. The Surrender
Charge will vary depending on the Insured's Age, sex, and Rate Class on the
Policy Date or on the effective date of an increase in Face Amount. The maximum
amount of the Surrender Charge is $25.57 per $1,000 of Face Amount for a male
Insured at Issue Age 75.

The Surrender Charge for the initial Face Amount or any requested increase
in Face Amount is determined by multiplying (1) the applicable Surrender Charge
per $1,000 of Face Amount from Appendix C by (2) the initial Face Amount or the
Face Amount of the increase, as applicable, and by (3) the applicable percentage
from the Surrender Charge Percentage Table on the next page, and then dividing
this amount by 1,000. The surrender charge will not be larger than the sum of
premiums paid.

Example. The following example illustrates how we determine the Surrender
Charge. Assume that a male nonsmoker, Age 35 buys a Policy with an initial Face
Amount of $100,000 and surrenders the Policy during the third Policy Year at
which time he has paid cumulative premiums of $2,000.

Based on these assumptions the Surrender Charge will be the result of
multiplying (1) $6.76 (from Appendix C for a male nonsmoker Age 35) by (2)
$100,000 (the initial Face Amount) and by (3) 80% (the applicable percentage
from the Surrender Charge Percentage Table), and then dividing by 1000, which
results in a Surrender Charge of $540.80 ($6.76 x $100,000 x 80% / 1,000). This
is less than the cumulative premiums of $2,000.

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The additional Surrender Charge for requested increases in Face Amount will
be calculated in the same manner as illustrated in the example above, except
that the different Surrender Charge Percentages apply for requested increases in
Face Amount.

SURRENDER CHARGE PERCENTAGE TABLE

THE FOLLOWING PERCENTAGES OF THE
SURRENDER CHARGE WILL BE PAYABLE FOR:
IF SURRENDER OR LAPSE OCCURS IN -------------------------------------------
THE LAST MONTH OF POLICY YEAR:* INITIAL FACE AMOUNT FACE AMOUNT INCREASES
- ------------------------------- ------------------- ---------------------

0 100% 0%
1 90% 23.3%
2 80% 46.7%
3 70% 70%
4 60% 60%
5 50% 50%
6 40% 40%
7 30% 30%
8 20% 20%
9 10% 10%
10 0% 0%

For requested increases, years are measured from the date of the increase.

The percentages change equally for each Policy Month during the years shown. For
example, during the second Policy Year, the percentage reduces equally each
month from 90% at the beginning of the second Policy Year to 80% at the
beginning of the third Policy Year.

PARTIAL WITHDRAWAL AND TRANSFER CHARGES

DOLLAR COST AVERAGING SERVICE AND PORTFOLIO REBALANCING SERVICE CHARGES

We currently make no charge for these services, although we reserve the
right to charge for these services in the future.

MODIFICATION OF CHARGES

ReliaStar may modify any of the charges under the Policy, as well as the
minimum Face Amount set forth in this Prospectus, because of special
circumstances that result in lower sales, administrative, or mortality expenses.
For example, special circumstances may exist in connection with sales to our
policyholders or those of affiliated insurance companies, or sales to employees
or clients of members of our affiliated group of insurance companies. The amount
of any reductions will reflect the reduced sales effort and administrative costs
resulting from, or the different mortality experience expected as a result of,
the special circumstances. Reductions will not be unfairly discriminatory
against any person, including the affected Policy owners and owners of all other
policies funded by the Variable Account.

We and certain of our insurance company affiliates offer other variable
life insurance policies which also invest in the Funds. These policies may have
charges that could affect the value of the sub-accounts and may offer different
benefits more suitable to your needs. To obtain more information about these
policies, contact your agent or call 877-884-5050.

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THE VARIABLE ACCOUNT

On March 23, 1982, we established the ReliaStar Life Insurance Company of
New York Variable Life Separate Account I as one of our separate accounts
pursuant to the laws of the State of New York. The Variable Account:

- will receive and invest the Net Premiums paid and allocated to it under
this Policy;

- currently receives and invests net premiums for other classes of flexible
premium variable life insurance policies we issue and may do so for
additional classes in the future;

- meets the definition of a "separate account" under the Federal securities
laws; and

- is registered with the SEC as a unit investment trust under the
Investment Company Act of 1940 ("1940 Act"). Such registration does not
involve supervision by the SEC of the management or investment policies
or practices of the Variable Account, us, or the Funds.

We own the Variable Account's assets. However, New York law provides that
we cannot charge the Variable Account with liabilities arising out of any other
business we may conduct. We are required to maintain assets which are at least
equal to the reserves and other liabilities of the Variable Account. We may
transfer assets which exceed these reserves and liabilities to our general
account (the Fixed Account).

INVESTMENTS OF THE VARIABLE ACCOUNT

There are currently 37 investment options (Funds) available under the
Variable Account. However, we only permit you to participate in a maximum of 17
investment options over the lifetime of your Policy. The Summary and "Additional
Information on the Investments of the Variable Account" section describe the
Funds currently offered. You also should read the Funds' prospectuses for more
detailed information, particularly because several of the Funds and portfolios
may have objectives that are quite similar. Please call the telephone number
listed on the first page of this Prospectus to request a Fund's prospectus.
THERE IS NO ASSURANCE THAT ANY FUND WILL ACHIEVE ITS INVESTMENT OBJECTIVE(S).

Certain Funds offered under this Policy have investment objectives and
policies similar to the investment objectives and policies of other funds
managed by the Fund's investment adviser. The investment results of a Fund,
however, may be higher or lower than those of other funds managed by the same
adviser. There can be no assurance, and no representation is made, that the
investment results of any Fund will be comparable to those of another fund
managed by the same investment adviser.

Each Fund is an open-end management investment company. The investment
company receives investment advice from a registered investment adviser who,
other than ING Pilgrim Investments, LLC is not associated with us.

PERFORMANCE INFORMATION

Performance information for the Sub-Accounts of the Variable Account and
the Funds available for investment by the Variable Account may appear in
advertisements, sales literature, or reports to Policy owners or prospective
purchasers. Such performance information for the Sub-Accounts will reflect
deductions of Fund expenses and be adjusted to reflect the Monthly Variable
Accumulation Value Charge, but will not reflect deductions for the cost of
insurance, the Monthly Administrative Charge, the Monthly Amount Charge, the
Premium Expense Charge, the Surrender Charge or any charges for optional
insurance benefits. We will accompany quotations of performance information for
the Funds by performance information for the Sub-Accounts. Performance
information for the Funds will take into account all fees and charges at the
Fund level, but will not reflect any deductions from the Variable Account (such
as the Monthly Deduction, Surrender Charge, and any charges for optional
insurance benefits or the Premium Expense Charge). Performance information
reflects only the performance of a hypothetical investment during a particular
time period in which the calculations are based. We may provide performance
information showing total returns and average annual total returns for periods
prior to the date a Sub-Account commenced operation. We will

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calculate such performance information based on the assumption that the
Sub-Accounts were in existence for the same periods as those indicated for the
Funds, with the level of charges at the Variable Account level that were in
effect at the inception of the Sub-Accounts.

We may also provide individualized hypothetical illustrations of
Accumulation Value, Cash Surrender Value and Death Benefit based on hypothetical
investment returns of the Funds not to exceed 12.00%. These illustrations will
reflect deductions for Fund expenses and Policy and Variable Account charges,
including the Monthly Deduction, Premium Expense Charge and the Surrender
Charge. Subject to regulatory approval, we may base these hypothetical
illustrations on either the arithmetic or the weighted average of Fund expenses,
reflecting the Fund expenses for the year ended December 31, 2000 and the
Sub-Account assets as of December 31, 2000.

We may also provide individualized hypothetical illustrations of
Accumulation Value, Cash Surrender Value and Death Benefit based on historical
investment returns of the Funds. These illustrations will reflect deductions for
Fund expenses and Policy and Variable Account charges, including the Monthly
Deduction, Premium Expense Charge and the Surrender Charge. We will base these
hypothetical illustrations on the actual historical experience of the Funds as
if the Sub-Accounts had been in existence and a Policy issued for the same
periods as those indicated for the Funds.

We may compare performance of the Sub-Accounts and/or the Funds in
advertisements and sales literature:

- to other variable life insurance issuers in general

- to the performance of particular types of variable life insurance
policies investing in mutual funds

- to investment series of mutual funds with investment objectives similar
to each of the Sub-Accounts, whose performance is reported by Lipper
Analytical Services, Inc. and Morningstar, Inc. (independent services
that monitor and rank the performances of variable life insurance issuers
in each of the major categories of investment objectives on an
industry-wide basis), or reported by other series, companies, individuals
or other industry or financial publications of general interest, such as
Forbes, Money, The Wall Street Journal, Business Week, Barron's,
Kiplinger's, and Fortune.

- to the Standard & Poor's Index of 500 common stocks and the Dow Jones
Industrial, which are widely used measures of stock market performance

We may also compare the performance of each Sub-Account to other widely
recognized indices. Unmanaged indices may assume the reinvestment of dividends,
but typically do not reflect any "deduction" for the expense of operating or
managing an investment portfolio.

DEATH BENEFIT

If the Insured dies while the Policy is in force, we will pay the Death
Benefit reduced by any Loan Amount and unpaid Monthly Deductions. This amount is
called the proceeds. We may pay all or part of the proceeds in cash to your
beneficiaries or under one or more of the settlement options we offer. See
"General Provisions -- Settlement Options."

GUIDELINE PREMIUM TEST. The Death Benefit will be determined with
reference to the requirements for the Guideline Premium Test for qualifying a
Policy as a life insurance contract under Code Section 7702(a)(2). Under these
requirements, the sum of the premiums paid under a Policy may not exceed the
"guideline premium limitations," as defined in Code Section 7702(a). The Death
Benefit at any time is not

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less than the Accumulation Value multiplied by the Corridor Percentages, which
vary according to the Age of the Insured (as defined in Code Section 7702(d)).

GUIDELINE PREMIUM TEST
CORRIDOR PERCENTAGE TABLE

INSURED'S CORRIDOR INSURED'S CORRIDOR INSURED'S CORRIDOR
AGE ON PERCENTAGE OF AGE ON PERCENTAGE OF AGE ON PERCENTAGE OF
PREVIOUS POLICY ACCUMULATION PREVIOUS POLICY ACCUMULATION PREVIOUS POLICY ACCUMULATION
ANNIVERSARY VALUE ANNIVERSARY VALUE ANNIVERSARY VALUE
- --------------- ------------- --------------- ------------- --------------- -------------

40 or younger 250% 54 157 68 117
41 243 55 150 69 116
42 236 56 146 70 115
43 229 57 142 71 114
44 222 58 138 72 113
45 215 59 134 73 111
46 209 60 130 74 109
47 203 61 128 75-90 105
48 197 62 126 91 104
49 191 63 124 92 103
50 185 64 122 93 102
51 178 65 120 94 101
52 171 66 119 95 or older 100
53 164 67 118

DEATH BENEFIT OPTIONS

The policy provides two Death Benefit Options as shown below. You choose
the Death Benefit Option on the application for the Policy. Subject to certain
limitations, you can change the Death Benefit Option after issuance of the
Policy. See "Death Benefit -- Change in Death Benefit Option."

The Death Benefit prior to Age 100 depends on the Death Benefit Option
chosen. The Death Benefit after Age 100 is the Accumulation Value.

LEVEL AMOUNT OPTION. (OPTION A.) Prior to Age 100, the Death Benefit is the
greater of the current Face Amount of the Policy or the Corridor Percentage of
Accumulation Value on the Valuation Date on or next following the date of the
Insured's death. Under the Level Amount Option, the Death Benefit will remain
level unless the corridor percentage of Accumulation Value exceeds the current
Face Amount, in which case the amount of the Death Benefit will vary as the
Accumulation Value varies.

ILLUSTRATION OF LEVEL AMOUNT OPTION. For purposes of this illustration,
assume that the Insured is under Age 40, and that there is no Loan Amount. Under
the Level Amount Option, a Policy with a $100,000 Face Amount will generally
have a $100,000 Death Benefit. However, because the Death Benefit must be equal
to or be greater than 250% of the Accumulation Value, any time the Accumulation
Value of the Policy exceeds $40,000, the Death Benefit will exceed the $100,000
Face Amount. Each additional dollar added to the Accumulation Value above
$40,000 will increase the Death Benefit by $2.50. Thus, if the Accumulation
Value exceeds $40,000 and increases by $100 because of investment performance or
premium payments, the Death Benefit will increase by $250. A Policy owner with
an Accumulation Value of $50,000 will be entitled to a Death Benefit of $125,000
($50,000 X 250%); an Accumulation Value of $75,000 will yield a Death Benefit of
$187,500 ($75,000 X 250%); and an Accumulation Value of $100,000 will yield a
Death Benefit of $250,000 ($100,000 X 250%).

Similarly, as long as the Accumulation Value exceeds $40,000, each dollar
taken out of the Accumulation Value will reduce the Death Benefit by $2.50. If,
for example, the Accumulation Value is reduced from $75,000 to $70,000 because
of partial withdrawals, charges, or negative investment performance, the Death
Benefit will be reduced from $187,500 to $175,000. If at any time, however, the
Accumulation Value

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multiplied by the corridor percentage is less than the Face Amount, the Death
Benefit will equal the current Face Amount of the Policy.

The corridor percentage becomes lower as the Insured's Age increases. If
the current Age of the Insured in the illustration above were, for example, 50
(rather than under Age 40), the corridor percentage would be 185%. The Death
Benefit would not exceed the $100,000 Face Amount unless the Accumulation Value
exceeded approximately $54,055 (rather than $40,000), and each $1 then added to
or taken from the Accumulation Value would change the Death Benefit by $1.85
(rather than $2.50).

VARIABLE AMOUNT OPTION. (OPTION B.) Prior to Age 100, the Death Benefit is
equal to the greater of the current Face Amount plus the Accumulation Value of
the Policy, or the corridor percentage of the Accumulation Value on the
Valuation Date on or next following the date of the Insured's death. Under the
Variable Amount Option, the amount of the Death Benefit will always vary as the
Accumulation Value varies.

ILLUSTRATION OF VARIABLE AMOUNT OPTION. For purposes of this illustration,
assume that the Insured is under Age 40 and that there is no Loan Amount. Under
the Variable Amount Option, a Policy with a Face Amount of $100,000 will
generally pay a Death Benefit of $100,000 plus the Accumulation Value. Thus, for
example, a Policy with an Accumulation Value of $20,000 will have a Death
Benefit of $120,000 ($100,000 + $20,000); an Accumulation Value of $40,000 will
yield a Death Benefit of $140,000 ($100,000 + $40,000). The Death Benefit,
however, must be at least 250% of the Accumulation Value. As a result, if the
Accumulation Value of the Policy exceeds approximately $66,667, the Death
Benefit will be greater than the Face Amount plus the Accumulation Value. Each
additional dollar of the Accumulation Value above $66,667 will increase the
Death Benefit by $2.50. Thus, if the Accumulation Value exceeds $66,667 and
increases by $100 because of investment performance or premium payments, the
Death Benefit will increase by $250. A Policy owner with an Accumulation Value
of $75,000 will be entitled to a Death Benefit of $187,500 ($75,000 X 250%); an
Accumulation Value of $100,000 will yield a Death Benefit of $250,000 ($100,000
X 250%); and an Accumulation Value of $125,000 will yield a Death Benefit of
$312,500 ($125,000 X 250%).

Similarly, any time the Accumulation Value exceeds $66,667, each dollar
taken out of the Accumulation Value will reduce the Death Benefit by $2.50. If,
for example, the Accumulation Value is reduced from $75,000 to $70,000 because
of partial withdrawals, charges, or negative investment performance, the Death
Benefit will be reduced from $187,500 to $175,000. If at any time, however, the
Accumulation Value multiplied by the corridor percentage is less than the Face
Amount plus the Accumulation Value, then the Death Benefit will be the current
Face Amount plus the Accumulation Value of the Policy.

The corridor percentage becomes lower as the Insured's Age increases. If
the current Age of the Insured in the illustration above were, for example, 50
(rather than under 40), the corridor percentage would be 185%. The amount of the
Death Benefit would be the sum of the Accumulation Value plus $100,000 unless
the Accumulation Value exceeded approximately $117,647 (rather than $66,667),
and each $1 then added to or taken from the Accumulation Value would change the
Death Benefit by $1.85 (rather than $2.50).

WHICH DEATH BENEFIT OPTION TO CHOOSE

If you prefer to have premium payments and favorable investment performance
reflected partly in the form of an increasing Death Benefit, you should choose
the Variable Amount Option. If you are satisfied with the amount of your
existing insurance coverage and prefer to have premium payments and favorable
investment performance reflected to the maximum extent in the Accumulation Value
and lower cost of insurance charges, you should choose the Level Amount Option.

OPTIONAL TERM INSURANCE RIDER

As discussed in more detail under "Optional Insurance Benefits" on page 45,
we offer an optional term insurance rider. This rider provides a death benefit
upon the death of the Insured that supplements the Death Benefit under the base
Policy. The death benefit under this rider generally may be more cost effective
to you

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than increasing your Face Amount under the Policy. However, the term insurance
rider may affect your Death Benefit Guarantee. See "Death Benefit Guarantee."

REQUESTED CHANGES IN FACE AMOUNT

Subject to certain limitations, you may request an increase or decrease in
the Face Amount. No increase or decrease in the Face Amount will be permitted
during the first Policy Year. Changes in the Face Amount may have tax
consequences. You should consult a tax adviser before requesting a change in
Face Amount.

INCREASES. For an increase in the Face Amount, you must submit a written
request to us. We may also require additional evidence of insurability
satisfactory to us. The effective date of the increase will be the Monthly
Anniversary on or next following our approval of the increase. The increase may
not be less than $5,000. We will currently permit increases to the Insured's Age
85. We will deduct any charges associated with the increase (the increases in
the Cost of Insurance and the Surrender Charge upon lapse or total
surrender -- see "Effect of Requested Changes in Face Amount" below) from the
Accumulation Value, whether or not you pay an additional premium in connection
with the increase.

DECREASES. For a decrease in the Face Amount, a written request must also
be submitted to us. Any decrease in the Face Amount will be effective on the
Monthly Anniversary on or next following our receipt of a written request. The
Face Amount remaining in force after any requested decrease may not be less than
the Minimum Face Amount shown in the Policy. Under our current rules, the
Minimum Face Amount is $100,000, but we reserve the right to establish a
different Minimum Face Amount in the future. If, following a decrease in Face
Amount, the Policy would no longer qualify as life insurance under Federal tax
law (see "Federal Tax Matters -- Tax Status of the Policy"), we will limit the
decrease to the extent necessary to meet these requirements.

For purposes of determining the Cost of Insurance, decreases in the Face
Amount will be applied to reduce the current Face Amount in the following order:

(1) The Face Amount provided by the most recent increase;

(2) The next most recent increases successively; and

(3) The Face Amount when the Policy was issued.

By reducing the current Face Amount in this manner, the Rate Class
applicable to the most recent increase in Face Amount will be eliminated first,
then the Rate Class applicable to the next most recent increase, and so on, for
the purposes of calculating the Cost of Insurance. This assumption will affect
the Cost of Insurance under the Policy only if different Rate Classes have been
applied to the current Face Amount. We currently place Insureds into standard
Rate Classes or into substandard Rate Classes that involve a higher mortality
risk (for example, a 200% Rate Class or a 300% Rate Class). In an otherwise
identical Policy, an Insured in the standard Rate Class will have a lower Cost
of Insurance than an Insured in a substandard Rate Class with higher mortality
risks. See "Deductions and Charges -- Monthly Deduction."

For example, assume that the initial Face Amount was $500,000 with a
standard Rate Class, and that successive increases of $250,000 (at a Rate Class
of 200%) and $500,000 (at a Rate Class of 300%) were added. If a decrease of
$500,000 or less is requested, the amount of insurance at a 300% Rate Class will
be reduced first. If a decrease of more than $500,000 is requested, the amount
at a 300% Rate Class will be eliminated, and the excess over $500,000 will next
reduce the amount of insurance at a 200% Rate Class.

EFFECT OF REQUESTED CHANGES IN FACE AMOUNT. An increase or decrease in Face
Amount will affect the Monthly Deduction because the Cost of Insurance depends
upon the Face Amount. The charge for certain optional insurance benefits may
also be affected. See "Deductions and Charges -- Monthly Deduction." An increase
in the Face Amount will increase the Surrender Charge, but a decrease in the
Face Amount will not reduce the Surrender Charge. The Surrender Charge is,
however, imposed only upon lapse or total surrender of the Policy and not upon a
requested decrease in Face Amount. See "Deductions and Charges -- Surrender
Charge."

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An increase in the Face Amount will increase the Minimum Monthly Premiums
as of the effective date of the increase. Therefore, additional premium payments
may be required to maintain a Death Benefit Guarantee. A decrease in the Face
Amount will reduce the Minimum Monthly Premiums as of the effective date of the
decrease. See "Death Benefit Guarantees."

The additional Surrender Charge on a requested increase in the Face Amount
will reduce the Cash Surrender Value (which is the Accumulation Value less any
Surrender Charge, Loan Amount and unpaid Monthly Deductions). If the resulting
Cash Surrender Value is not sufficient to cover the Monthly Deduction, the
Policy may lapse unless a Death Benefit Guarantee is in effect. See "Policy
Lapse and Reinstatement -- Lapse" and "Death Benefit Guarantees."

INSURANCE PROTECTION

As your insurance needs change, you may increase or decrease the pure
insurance protection provided by the Policy (that is, the difference between the
Death Benefit and the Accumulation Value) in one of several ways. These ways
include

- increasing or decreasing the Face Amount of insurance,

- changing the level of premium payments, and,

- making a partial withdrawal under the Policy.

Although the consequences of each of these methods will depend upon the
individual circumstances, they may be generally summarized as follows:

- AN INCREASE IN THE FACE AMOUNT (which is generally subject to
underwriting approval -- see "Death Benefit -- Requested Changes in Face
Amount") will likely increase the amount of pure insurance protection,
depending on the amount of Accumulation Value and the resultant corridor
percentage limitation. If the insurance protection is increased, the
Policy charges generally will increase as well.

- A DECREASE IN THE FACE AMOUNT will, subject to the corridor percentage
limitations (see "Death Benefit -- Death Benefit Options"), decrease the
pure insurance protection without reducing the Accumulation Value. If the
Face Amount is decreased, the Cost of Insurance charges generally will
decrease as well. (Note that the Surrender Charge will not be reduced.
See "Deductions and Charges -- Surrender Charge.")

- A CHANGE IN THE LEVEL OF PREMIUM can have a variety of effects as
follows.

Under the Level Amount Option, until the corridor percentage of
Accumulation Value exceeds the Face Amount, (a) an increased level of
premium payments will reduce the amount of pure insurance protection, and
(b) a reduced level of premium payments will increase the amount of pure
insurance protection.

Under the Variable Amount Option, until the corridor percentage of
Accumulation Value exceeds the Face Amount plus the Accumulation Value,
the level of premium payments will not affect the amount of pure
insurance protection. (However, both the Accumulation Value and the Death
Benefit will be increased if premium payments are increased, and reduced
if premium payments are reduced.)

Under any Death Benefit Option, if the Death Benefit is the corridor
percentage of Accumulation Value, then (a) an increased level of premium
payments will increase the amount of pure insurance protection (subject
to underwriting approval -- see "Payment and Allocation of
Premiums -- Amount and Timing of Premiums"), and (b) a reduced level of
premium payments will reduce the pure insurance protection.

- A PARTIAL WITHDRAWAL will reduce the Death Benefit. See "Surrender
Benefits -- Partial Withdrawal." However, it has a limited effect on the
amount of pure insurance protection and charges under the Policy, because
the decrease in the Death Benefit is usually equal to the amount of
Accumulation Value withdrawn. The primary use of a partial withdrawal is
to withdraw Accumulation Value.

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Furthermore, it results in a reduced amount of Accumulation Value and
increases the possibility that the Policy will lapse.

You should consider the techniques described in this section for changing
the amount of pure insurance protection under the Policy (for example, changing
the Face Amount, making a partial withdrawal, and changing the amount of premium
payments) together with the other restrictions and considerations described
elsewhere in this prospectus.

CHANGING THE DEATH BENEFIT OPTION

After the first Policy Year, you may change the Death Benefit Option once
each Policy Year. You must submit a written request to change the Death Benefit
Option. A change in the Death Benefit Option will also change the Face Amount.
If the Death Benefit Option is changed from the Level Amount Option to the
Variable Amount Option, the Face Amount will be decreased by an amount equal to
the Accumulation Value on the effective date of the change. You cannot change
from the Level Amount Option to the Variable Amount Option if the resulting Face
Amount would fall below the minimum Face Amount (currently $100,000).

If you request to change the Death Benefit Option from the Variable Amount
Option to the Level Amount Option, we will increase the Face Amount by an amount
equal to the Policy's Accumulation Value on the effective date of the change.

An increase or decrease in Face Amount resulting from a change in the Death
Benefit Option will affect the future Monthly Deductions because the Cost of
Insurance depends upon the Face Amount. A change in the Face Amount resulting
from a change in the Death Benefit Option may also affect the charge for certain
optional insurance benefits. See "Deductions and Charges -- Monthly Deduction."
However, a Face Amount change resulting from a Death Benefit Option change will
not affect the Surrender Charge.

Changes in the Death Benefit Option do not require additional evidence of
insurability.

Changing the Death Benefit Option may have tax consequences. You should
consult a tax adviser before changing the Death Benefit Option.

ACCELERATED BENEFIT RIDER

Under certain circumstances, the Accelerated Benefit Rider allows a Policy
owner to accelerate benefits from the Policy that we otherwise would pay upon
the Insured's death. We will provide an Accelerated Benefit if the Insured has a
terminal illness that will result in the death of the Insured within 12 months
as certified by a physician. The Accelerated Benefit will not be more than 50%
of the amount that would be payable at the death of the Insured. The Accelerated
Benefit will first be used to pay off any outstanding Policy loans and interest
due. The remainder of the Accelerated Benefit will be paid in a lump sum to the
Policy owner. Limitations, as described in the Accelerated Benefit Rider, may
apply.

We will establish a lien against the Policy for the amount of the
Accelerated Benefit plus an administrative charge, plus interest on the lien. We
will first use any proceeds from the Policy to repay this lien. We will reduce
your access to the Cash Value by the amount of the lien. We also will reduce the
proceeds payable to the beneficiary by the amount of the lien. We may assess an
administrative charge of up to $300 at the time we pay the Accelerated Benefit.
The Accelerated Benefit will not affect the premium payable on the Policy.
Receipt of a benefit under the Accelerated Benefit Rider may give rise to
Federal or state income tax. Consult a competent tax advisor for further
information.

The above information is not a complete summary of the Rider. All of the
terms and provisions of the Accelerated Benefit Rider are set forth in the
Rider, and you should refer to the Rider in order to fully ascertain its
benefits and limitations.

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PAYMENT AND ALLOCATION OF PREMIUMS

ISSUING THE POLICY

An individual applying for a Policy must complete an application and
personally deliver it to our licensed agent. We will generally only issue a
Policy to an applicant Age 85 or less who supplies evidence of insurability
satisfactory to us. The minimum Face Amount is currently $100,000, but we
reserve the right to specify a different minimum Face Amount in the future for
issuing a new Policy. Acceptance is subject to our underwriting rules and we
reserve the right to reject an application for any reason permitted by law.

COVERAGE. Coverage under a Policy begins on the later of the Issue Date or
the date we receive at least the minimum initial premium (see immediately
following section). In general, if the applicant pays at least the minimum
initial premium with the application, the Issue Date will be the later of the
date of the application or the date of any medical examination required by our
underwriting procedures. However, if underwriting approval has not occurred
within 45 days after we receive the application or if you authorize premiums to
be paid by bank account monthly deduction, the Issue Date will be the date of
underwriting approval.

This Policy may be used with certain tax-qualified retirement plans. The
Policy includes attributes such as tax deferral on accumulated earnings.
Qualified retirement plans provide their own tax deferral benefits; the purchase
of this Policy does not provide additional tax deferral benefits beyond those
provided in the qualified plan. Accordingly, if you are purchasing this Policy
through a qualified plan, you should consider purchasing this Policy for its
Death Benefit and other non-tax related benefits. Please consult a tax adviser
for information specific to your circumstances to determine whether the Policy
is an appropriate investment for you.

If you authorize premiums to be paid by government allotment, the Issue
Date generally will be, subject to our underwriting approval, the first day of
the month in which we receive the first Premium through government allotment,
whether or not a Premium is collected with the application. If a Premium is
collected with the application, it will be allocated to the Sub-Accounts of the
Variable Account and the Fixed Account on the Valuation Date next following the
Issue Date.

MINIMUM INITIAL PREMIUM. The minimum initial premium is three Basic Minimum
Monthly Premiums. See "Death Benefit Guarantee." If, however, you authorize
premiums to be paid by bank account monthly deduction or government allotment,
we will accept one Basic Minimum Monthly Premium together with the required
authorization forms. The Basic Minimum Monthly Premium is specified in the
Policy and determines the payments required to maintain the Basic Death Benefit
Guarantee.

ALLOCATING PREMIUMS

You choose the initial allocation of your Net Premiums (your gross premiums
less the Premium Expense Charge) to the Fixed Account and the Sub-Accounts of
the Variable Account on the application for the Policy. You may change the
allocation at any time by notifying us in writing. Changes will not be effective
until the date we receive your request and will only affect premiums we receive
on or after that date. The premium allocation may be 100% to the Fixed Account
or the Sub-Accounts or divided among the Fixed Account and the Sub-Accounts in
whole percentage points totaling 100%. We reserve the right to adjust any
allocation to eliminate fractional percentages. Changing the Net Premium
allocation will not affect the allocation of existing Accumulation Value.

Net Premiums allocated to the Variable Account and received before the
Initial Premium Transfer Date will be allocated to the Initial Premium
Sub-Account. Then, on the Initial Premium Transfer Date, the dollar value of the
Accumulation Units in the Initial Premium Sub-Account will be transferred to the
Sub-Accounts according to the allocation in effect. The Initial Premium
Sub-Account is the Fidelity VIP Money Market Sub-Account. The Initial Premium
Transfer date is shown on your Policy Data Page. See "Free Look Conversion
Rights -- Free Look Rights."

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CREDITING NET PREMIUMS. We will credit Net Premiums on the latest of the
following dates:

- The Valuation Date we receive the premium.

- The Valuation Date following the date of underwriting approval.

- The Valuation Date on or next following the Policy Date.

- The Valuation Date on or next following the date we have received at
least the required minimum initial premium payment.

- In the case of Policies issued under government allotment programs, the
Valuation Date next following the Issue Date.

Until the date on which Net Premiums are credited as described above, we
will hold premium payments in our General Account. No interest will be earned on
these premium payments during this period of time.

REFUNDING PREMIUMS. We will return all premiums paid without interest if
any of the following occur:

- We send notice to the applicant that the insurance is declined.

- The applicant refuses an offer for an alternative policy.

- The applicant does not supply required medical exams or tests within 30
days of the date of the application.

- The applicant returns the Policy under the limited free look right. See
"Free Look and Conversion Rights -- Free Look Rights."

AMOUNT AND TIMING OF PREMIUMS

The amount and frequency of premium payments will affect the Accumulation
Value, the Cash Surrender Value, and how long the Policy will remain in force
(including affecting whether a Death Benefit Guarantee is in effect -- see
"Death Benefit Guarantee"). After the initial premium, you may determine the
amount and timing of subsequent premium payments within the following
restrictions:

- In most cases, we will require that you pay cumulative premiums
sufficient to maintain the Basic Death Benefit Guarantee to keep the
Policy in force during at least the first several Policy Years. See
"Death Benefit Guarantee."

- We may choose not to accept any premium less than $25.

- We reserve the right to limit the amount of any premium payment. In
general, during the first Policy Year we will not accept total premium
payments in excess of $250,000 on the life of any Insured, whether such
payments are received on a Policy or on any other insurance policy
issued by us or our affiliates. Also, we will not accept any premium
payment in excess of $50,000 on any Policy after the first Policy Year.
We may waive any of these premium limitations.

- We may require additional evidence of insurability satisfactory to us if
any premium would increase the difference between the Death Benefit and
the Accumulation Value (that is, the net amount at risk). A premium
payment would increase the net amount at risk if at the time of payment
the Death Benefit would be based upon the applicable corridor percentage
of Accumulation Value. See "Death Benefit -- Death Benefit Options."

- In no event may the total of all premiums paid, both scheduled and
unscheduled, exceed the current maximum premium payments allowed for
life insurance under Section 7702 of the Code. If at any time you pay a
premium which would result in total premiums exceeding the current
maximum premiums allowed, we will only accept that portion of the
premium which would make total premiums equal the maximum. We will
return any part of the premium in excess of that amount, and we will not
accept further premiums until allowed by the current maximum premium
limitations.

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- You may pay additional premiums (other than Planned Periodic Premiums)
at any time while the Policy is in force. We may limit the number and
amount of these additional payments.

- If you want to make a large premium payment under this Policy, and you
wish to avoid Modified Endowment Contract classification, you may
contact us in writing before making the payment and we will tell you the
maximum amount which can be paid into the Policy. See "Federal Tax
Matters -- Tax Status of the Policy."

- We may treat any premium payment as a loan repayment in order to prevent
the Policy from lapsing, or to prevent borrowing from the Policy to pay
premiums.

PLANNED PERIODIC PREMIUMS

You may choose a Planned Periodic Premium schedule which indicates a
preference as to future amounts and frequency of payment. You may pay Planned
Periodic Premiums annually, semi-annually, quarterly or, if you choose, you can
pay the Planned Periodic Premiums by bank account monthly deduction or
government allotment.

Your Policy will show the amount and frequency of your initial Planned
Periodic Premium. You may change the Planned Periodic Premium at any time by
written request. We may limit the amount of any increase if such an increase
would result in planned periodic premiums that are larger than (a) the maximum
premium we would accept under the terms of the Amount and Timing of Premium
Payments provision in the Policy or (b) the planned periodic premium which would
total more than $50,000 per year. Failure to make any Planned Periodic Premium
payment will not, however, necessarily result in lapse of the Policy. On the
other hand, making Planned Periodic Premium payments will not guarantee that the
Policy remains in force. See "Death Benefit Guarantee" and "Policy Lapse and
Reinstatement."

PAYING PREMIUMS BY MAIL

Planned Periodic Premiums and Unscheduled Additional Premiums may be paid
to the Company by mailing them to:

ReliaStar Life Insurance Company of New York
P.O. Box 802511
Chicago, Illinois 60680-2511

A payment is received by us when it is received at our offices. After you
have paid your initial premium, we suggest you send premium payments directly to
the Company, rather than through your agent/registered representative, to assure
the earliest crediting date because your premium payments won't be credited
until they get to the Company.

DEATH BENEFIT GUARANTEE

If you meet the requirements described below, we guarantee that we will not
lapse the Policy even if the Cash Surrender Value is not sufficient to cover the
Monthly Deduction that is due. This feature of the Policy is called the "Death
Benefit Guarantee." There are two Death Benefit Guarantees. The Basic Death
Benefit Guarantee expires after 5 Policy Years. The Extended Death Benefit
Guarantee is shown in your Policy and expires after a longer period, which
depends on the Insured's age, sex, rate class and riders.

The most significant benefit of the Basic Death Benefit Guarantee is:

- During the early Policy Years, the Cash Surrender Value will generally
not be sufficient to cover the Monthly Deduction, so that the Death
Benefit Guarantee will be necessary to avoid lapse of the Policy. See
"Policy Lapse and Reinstatement." This occurs because the Surrender
Charge usually exceeds the Accumulation Value in these years. In this
regard, you should consider that if you request an increase in Face
Amount, an additional Surrender Charge would apply for the 10 years
following the increase, which could create a similar possibility of
lapse as exists during the early Policy Years.

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The most significant benefit of the Extended Death Benefit Guarantee is:

- To the extent the Cash Surrender Value declines due to poor investment
performance, or due to an additional Surrender Charge after a requested
increase, the Cash Surrender Value may not be sufficient even in later
Policy Years to cover the Monthly Deduction, so that the Extended Death
Benefit Guarantee may be necessary in later Policy Years to avoid lapse
of the Policy.

Thus, even though the Policy permits premium payments that are less than
the Minimum Monthly Premiums, you may lose the significant protection provided
by the Death Benefit Guarantee by paying less than the Minimum Monthly Premiums.

REQUIREMENTS FOR THE DEATH BENEFIT GUARANTEE

Each Death Benefit Guarantee will be in effect if the sum of all premiums
paid minus any partial withdrawals and any loans are equal to or greater than
the sum of the Minimum Monthly Premiums for that Death Benefit Guarantee since
the Policy Date. You must satisfy the requirements for the Death Benefit
Guarantee as of each Monthly Anniversary, even though you do not have to pay
premiums monthly.

EXAMPLE: The Policy Date is January 1, 2001. The Basic Minimum Monthly
Premium is $100 per month. The Extended Minimum Monthly Premium is $300 per
month. No Policy loans or partial withdrawals are taken and no Face Amount
changes have occurred.

Case 1. You pay $100 each month. The basic Death Benefit Guarantee is
maintained.

The Extended Death Benefit Guarantee is not in effect.

Case 2. You pay $1,000 on January 1, 2001. The $1,000 maintains the Basic
Death Benefit Guarantee without your paying any additional
premiums for the next 10 months (through October 31, 2001).
However, you must pay at least $100 by November 1, 2001 to
maintain the Basic Death Benefit Guarantee through November 30,
2001.

The $1,000 maintains the Extended Death Benefit Guarantee for the
next 3 months (through March 31, 2001). However, you must pay at
least $200 by April 1, 2001 to maintain the Extended Death Benefit
Guarantee through April 30, 2001.

We will determine (and the Policy will indicate) the amount of the initial
Basic Minimum Monthly Premium and Extended Minimum Monthly Premiums at issuance
of the Policy. The initial Minimum Monthly Premium will depend upon the
Insured's sex, Age at issue, Rate Class, optional insurance benefits added by
rider, and the initial Face Amount.

The following Policy changes may change the Minimum Monthly Premiums:

- A requested increase or decrease in the Face Amount. See "Death
Benefit -- Requested Changes in Face Amount."

- A change in the Death Benefit Option. See "Death Benefit -- Changing the
Death Benefit Option."

- The addition or termination of a Policy rider. See "General
Provisions -- Optional Insurance Benefits."

We will notify you in writing of any changes in the Minimum Monthly
Premiums.

If, as of any Monthly Anniversary, you have not made sufficient premium
payments to maintain either Death Benefit Guarantee, we will send you notice of
the premium payment required to maintain it. If we do not receive the required
premium payment within 61 days from the date of our notice, that Death Benefit
Guarantee will terminate. THE EXTENDED DEATH BENEFIT GUARANTEE CANNOT BE
REINSTATED.

Even if the Death Benefit Guarantees terminate, the Policy will not
necessarily lapse. For a discussion of the circumstances under which the Policy
may lapse, see "Policy Lapse and Reinstatement."

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ACCUMULATION VALUE

The Accumulation Value of the Policy (that is, the total value attributable
to a specific Policy in the Variable Account and the Fixed Account) is equal to
the sum of the Variable Accumulation Value (the amount attributable to the
Variable Account) plus the Fixed Accumulation Value (the amount attributable to
the Fixed Account). You should distinguish the Accumulation Value from the Cash
Surrender Value that would actually be paid to you upon total surrender of the
Policy, which is the Accumulation Value less any Surrender Charge, Loan Amount
and unpaid Monthly Deductions. See "Surrender Benefits -- Total Surrender." You
should also distinguish the Accumulation Value from the Cash Value, which
determines the amount available for Policy loans, and is the Accumulation Value
less any Surrender Charge. See "Policy Loans."

The Variable Accumulation Value will generally vary daily and will increase
or decrease to reflect the investment performance of the Funds in which
Sub-Accounts of the Variable Account have been invested.

We will increase the Variable Accumulation Value by:

- any Net Premiums credited to the Variable Account, and

- any transfers from the Fixed Account.

We will reduce the Variable Accumulation Value by:

- the Monthly Deduction attributable to the Variable Account,

- partial withdrawals from the Variable Account,

- any transfer and partial withdrawal charges attributable to the Variable
Account, and

- any amounts transferred from the Variable Account to the Fixed Account
(including amounts transferred from the Variable Account to the Fixed
Account as security for Policy loans -- see "Policy Loans").

We will increase the Fixed Accumulation Value by:

- any Net Premiums credited to the Fixed Account,

- any interest credited to the Fixed Account (determined at our
discretion, but guaranteed not to be less than 4%), and

- any amounts transferred from the Variable Account to the Fixed Account
(including amounts transferred to the Fixed Account as security for
Policy loans -- see "Policy Loans").

We will reduce the Fixed Accumulation Value by:

- the Monthly Deduction attributable to the Fixed Account,

- partial withdrawals from the Fixed Account,

- any transfer and partial withdrawal charges attributable to the Fixed
Account, and

- any amounts transferred from the Fixed Account to the Variable Account.

See Appendix B for a detailed discussion of the calculation of Accumulation
Value.

ILLUSTRATION OF POLICY BENEFITS

In order to help you understand how your Policy values would vary over time
under different sets of assumptions, we will provide you with certain
personalized illustrations upon request. These will be based on the age and
insurance risk characteristics of the Insured under your Policy and such factors
as the Face Amount, Death Benefit Option, premium payment amounts and rates of
return (within limits) that you request. You can request such illustrations at
any time.

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We have also filed an example of such illustration as an exhibit to the
registration statement referred to on page 55 of this Prospectus. This form of
illustration is available to you upon request and is incorporated herein by
reference. Subject to regulatory approval, personalized illustrations may be
based upon a weighted average rather than an arithmetic average of Fund
expenses.

SPECIALIZED USES OF THE POLICY

Because the Policy provides for an accumulation of Cash Surrender Value as
well as a Death Benefit, the Policy can be used for various individual and
business financial planning purposes. Purchasing the Policy in part for such
purposes entails certain risks. For example, if the investment performance of
the Sub-Accounts to which Accumulation Value is allocated is poorer than
expected or if sufficient premiums are not paid, the Policy may lapse or may not
accumulate sufficient Accumulation Value or Cash Surrender Value to fund the
purpose for which the Policy was purchased. Withdrawals and Policy loans may
significantly affect current and future Accumulation Value, Cash Surrender
Value, or Death Benefit proceeds. Depending upon Sub-Account investment
performance and the amount of a Policy loan, the loan may cause a Policy to
lapse. Because the Policy is designed to provide benefits on a long-term basis,
before purchasing a Policy for a specialized purpose a purchaser should consider
whether the long-term nature of the Policy is consistent with the purpose for
which it is being considered. Using a Policy for a specialized purpose may have
tax consequences. See "Federal Tax Matters."

POLICY LAPSE AND REINSTATEMENT

LAPSE. Unlike traditional life insurance policies, the failure to make a
Planned Periodic Premium will not by itself cause the Policy to lapse
(terminate). If a Death Benefit Guarantee is not in effect, the Policy will
lapse only if, as of any Monthly Anniversary, the Cash Surrender Value is less
than the Monthly Deduction due, and a grace period of 61 days expires without a
sufficient premium payment.

During the early Policy Years, the Cash Surrender Value will generally not
be sufficient to cover the Monthly Deduction, so that premium payments
sufficient to maintain a Death Benefit Guarantee will be required to avoid
lapse. See "Death Benefit Guarantees."

The Policy does not lapse, and the insurance coverage continues, until the
expiration of a 61-day grace period which begins on the date we send you written
notice indicating that the Cash Surrender Value is less than the Monthly
Deduction due. Our written notice will indicate the amount of the payment
required to avoid lapse. If you do not make a sufficient premium payment within
the grace period, then the Policy will lapse without value.

If the Insured dies during the grace period, the proceeds payable will
equal the amount of the Death Benefit on the Valuation Date on or next following
the date of the Insured's death, reduced by any Loan Amount and any unpaid
Monthly Deductions.

If a Death Benefit Guarantee is in effect, we will not lapse the Policy.
See "Death Benefit Guarantee."

REINSTATEMENT. Reinstatement means putting a lapsed Policy back in force.
You may reinstate a lapsed Policy by written request any time within five years
after it has lapsed if it has not been surrendered for its Cash Surrender Value.

To reinstate the Policy and any riders, you must submit evidence of
insurability satisfactory to us and you must pay a premium large enough such
that the Net Premium is as large as the sum of the Surrender Charge after
reinstatement, plus the Monthly Deductions for the date of reinstatement and the
following Monthly Anniversary.

The Extended Death Benefit Guarantee cannot be reinstated. See "Death
Benefit Guarantee."

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SURRENDER BENEFITS

Subject to certain limitations, you may make a total surrender of the
Policy or a partial withdrawal of the Policy's Cash Surrender Value by sending
us a written request. We will determine the amount available for a total
surrender or partial withdrawal at the end of the Valuation Period when we
receive your written request. Generally, we will pay any amounts from the
Variable Account upon total surrender or partial withdrawal within seven days
after we receive your written request. We may postpone payments, however, in
certain circumstances. See "General Provisions -- Postponement of Payments."
Surrendering the Policy may have tax consequences. See "Federal Tax Matters."

TOTAL SURRENDER

You may surrender the Policy at any time for its Cash Surrender Value by
making a written request. The Cash Surrender Value is the Accumulation Value of
the Policy reduced by any Surrender Charge, Loan Amount and unpaid Monthly
Deductions. If the Cash Surrender Value at the time of a surrender exceeds
$25,000, the written request must include a Signature Guarantee. An illustration
of Accumulation Values, Surrender Charges, Cash Surrender Values, and Death
Benefits assuming different levels of premium payments and investment returns
for selected Ages and Face Amounts is available upon your request. An example of
an illustration has been filed as an exhibit to the registration statement.

PARTIAL WITHDRAWAL

After the first Policy Year, you may also withdraw part of the Cash
Surrender Value by sending us a written request. If the amount being withdrawn
exceeds $25,000, then the written request must include a Signature Guarantee. We
currently allow only one partial withdrawal in any Policy Year. When you make a
partial withdrawal we currently deduct your withdrawal amount plus a $10 charge
for each withdrawal. We currently make a $10 charge for each partial withdrawal.
We guarantee that this charge will not exceed $25 for each partial withdrawal.
See "Deductions and Charges -- Partial Withdrawal and Transfer Charges." The
amount of any partial withdrawal must be at least $500 and, during the first 10
Policy Years, may not be more than 20% of the Cash Surrender Value on the date
we receive your written request. No interest will accrue on amounts represented
by uncashed distribution or redemption checks.

Unless you specify a different allocation, we make partial withdrawals from
the Fixed Account and the Sub-Accounts of the Variable Account on a
proportionate basis based upon the Accumulation Value. We will determine these
proportions at the end of the Valuation Period during which we receive your
written request. For purposes of determining these proportions, we first
subtract any outstanding Loan Amount from the Fixed Accumulation Value.

EFFECT OF PARTIAL WITHDRAWAL. We will reduce the Accumulation Value by the
amount of any partial withdrawal. We will also reduce the Death Benefit by the
amount of the withdrawal, or, if the Death Benefit is based on the corridor
percentage of Accumulation Value (see "Death Benefit -- Death Benefit Options"),
by an amount equal to the corridor percentage times the amount of the partial
withdrawal.

If the Level Amount Option is in effect, we will reduce the Face Amount by
the amount of the partial withdrawal. When increases in the Face Amount have
occurred previously, we reduce the current Face Amount by the amount of the
partial withdrawal in the following order:

(1) The Face Amount provided by the most recent increase;

(2) The next most recent increases successively; and

(3) The Face Amount when the Policy was issued.

(This assumption also applies to requested decreases in Face Amount -- see
"Death Benefit -- Requested Changes in Face Amount.") Thus, partial withdrawals
may affect the way in which the Cost of Insurance is calculated and the amount
of pure insurance protection under the Policy. See "Death Benefit --

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Requested Changes in Face Amount," "Deductions and Charges -- Monthly Deduction"
and "Death Benefit -- Insurance Protection."

We do not allow a partial withdrawal if the Face Amount after a partial
withdrawal would be less than the Minimum Face Amount ($100,000).

If the Variable Amount Option is in effect, a partial withdrawal does not
affect the Face Amount.

A partial withdrawal may also cause the termination of the Death Benefit
Guarantees because we deduct the amount of the partial withdrawal from the total
premiums paid in calculating whether you have paid sufficient premiums in order
to maintain the Death Benefit Guarantees.

Like partial withdrawals, Policy loans are a means of withdrawing funds
from the Policy. See "Policy Loans." A partial withdrawal or a Policy loan may
have tax consequences depending on the circumstances of such withdrawal or loan.
See "Federal Tax Matters -- Tax Status of the Policy."

TRANSFERS

You may transfer all or part of the Variable Accumulation Value between the
Sub-Accounts or to the Fixed Account subject to any conditions the Funds whose
shares are involved may impose and any conditions we may impose on transfers.
See "Excessive Trading." You must make your transfer request in writing unless
you have completed a telephone/fax transfer authorization form. You may also
direct us to automatically make periodic transfers under the Dollar Cost
Averaging or Portfolio Rebalancing services as described below.

To transfer all or part of the Variable Accumulation Value from a
Sub-Account, we redeem Accumulation Units and reinvest their values in other
Sub-Accounts, or the Fixed Account, as you direct in your request. We will
effect transfers, and determine all values in connection with transfers, at the
end of the Valuation Period during which we receive your request, except as
otherwise specified for the Dollar Cost Averaging or Portfolio Rebalancing
services. With respect to future Net Premium payments, however, your current
premium allocation will remain in effect unless (1) you have requested the
Portfolio Rebalancing service, or (2) you are transferring all of the Variable
Accumulation Value from the Variable Account to the Fixed Account in exercise of
conversion rights. See "Free Look and Conversion Rights -- Conversion Rights."

Transfers from the Fixed Account to the Variable Account are subject to the
following additional restrictions:

- your transfer request must be postmarked no more than 30 days before or
after the Policy Anniversary in any year and only one transfer is
permitted during this period,

- the Fixed Accumulation Value after the transfer must be at least equal to
the Loan Amount,

- you may only transfer up to 50% of the Fixed Accumulation Value, less any
Loan Amount, unless the balance is less than $2,000, in which event you
may transfer the full Fixed Accumulation Value, less any Loan Amount, and

- you must transfer at least the lesser of $500 or the total Fixed
Accumulation Value, less any Loan Amount.

See Appendix A. Some of these restrictions may be waived for transfers due
to the Portfolio Rebalancing service.

TELEPHONE/FAX INSTRUCTIONS. You are allowed to enter certain types of
instructions either by telephone or by fax if you complete a telephone/fax
instruction authorization form. If you complete the form, you can enter the
following types of instructions by telephone or fax:

- transfers between Sub-Accounts

- changes of allocations among fund options

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By completing the telephone/fax form, you agree that we will not be liable
for any loss, liability, cost or expense when we act in accordance with the
telephone/fax transfer instructions that we receive or are recorded on voice
recording equipment. If we later determine that you did not make a telephone/fax
transfer request or the request was made without your authorization, and loss
results from such unauthorized transfer, you bear the risk of this loss. We
consider any requests made via fax as telephone requests and such requests are
bound by the conditions in the telephone/fax transfer authorization form you
sign. Any fax request should include your name, daytime telephone number, Policy
number and, in the case of transfers, the names of the Sub-Accounts from which
and to which money will be transferred and the allocation percentage. ReliaStar
will employ reasonable procedures to confirm that instructions communicated by
telephone/fax are genuine. If we do not employ such procedures, we may be liable
for any losses due to unauthorized or fraudulent instructions. Such procedures
may include, among others, requiring forms of personal identification prior to
acting upon telephone/fax instructions, providing written confirmation of such
instructions, and/or tape recording telephone instructions.

Telephone and fax transfers may not always be available. Telephone or fax
systems, whether yours, your service provider's or your agent's, can experience
outages or slowdowns for a variety of reasons. These outages or slowdowns may
prevent or delay our receipt of your request. If you are experiencing problems,
you should make your transfer request in writing.

EXCESSIVE TRADING

Excessive trading activity can disrupt orderly Fund management strategies
and increase Fund expenses by causing:

- increased trading and transaction costs;

- disruption of planned investment strategies

- forced and unplanned portfolio turnover;

- lost opportunity costs; and

- large asset swings that decrease the Fund's ability to provide maximum
investment return to all Policy owners.

In response to excessive trading, we may place restrictions or refuse
transfers made by third-party agents acting on behalf of Policy owners such as a
market timing service. We will refuse or place restrictions on transfers when we
determine, in our sole discretion, that transfers are harmful to the Funds, or
Policyowners as a whole.

DOLLAR COST AVERAGING SERVICE. You may request this service if your Face
Amount is at least $100,000 and your Accumulation Value, less any Loan Amount,
is at least $5,000. If you request this service, you direct us to automatically
make specific periodic transfers of a fixed dollar amount from any of the
Sub-Accounts to one or more of the Sub-Accounts or to the Fixed Account. We do
not permit transfers from the Fixed Account under this service. You may request
that we make transfers of this type on a monthly, quarterly, semi-annual, or
annual basis. This service is intended to allow you to use "Dollar Cost
Averaging," a long term investment method which provides for regular investments
over time. We make no guarantees that Dollar Cost Averaging will result in a
profit or protect against loss. You may discontinue this service at any time by
notifying us in writing.

If you are interested in the Dollar Cost Averaging service, you may obtain
a separate application form and full information concerning this service and its
restrictions from us or our registered representative.

We will discontinue the Dollar Cost Averaging service immediately (1) on
receipt of any request to begin a Portfolio Rebalancing service, (2) if the
Policy is in the grace period on any date when Dollar Cost Averaging transfers
are scheduled, or (3) if the specified transfer amount from any Sub-Account is
more than the Accumulation Value in that Sub-Account.

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We reserve the right to discontinue, modify, or suspend this service. Any
such modification or discontinuation would not affect any Dollar Cost Averaging
service requests already commenced. We currently make no charge for these
services, although we reserve the right to make charges for these services in
the future.

PORTFOLIO REBALANCING SERVICE. You may request this service if your Face
Amount is at least $100,000 and your Accumulation Value, less any Loan Amount,
is at least $10,000. If you request this service, you direct us to automatically
make periodic transfers to maintain your specified percentage allocation of
Accumulation Value, less any Loan Amount, among the Sub-Accounts of the Variable
Account and the Fixed Account. We will also change your allocation of future Net
Premium payments to be equal to this specified percentage allocation. You may
request that we make transfers made under this service on a quarterly, semi-
annual, or annual basis. This service is intended to maintain the allocation you
have selected consistent with your personal objectives.

The Accumulation Value in each Sub-Account of the Variable Account and the
Fixed Account will grow or decline at different rates over time. Portfolio
Rebalancing will periodically transfer Accumulation Values from those accounts
that have increased in value to those accounts that have increased at a slower
rate or declined in value. If all accounts decline in value, it will transfer
Accumulation Values from those that have decreased less in value to those that
have decreased more in value. We make no guarantees that Portfolio Rebalancing
will result in a profit or protect against loss. You may discontinue this
service at any time by notifying us in writing.

If you are interested in the Portfolio Rebalancing service you may obtain a
separate application form and full information concerning this service and its
restrictions from us or our registered representative.

If you are using the Portfolio Rebalancing service, we will discontinue
this service immediately (1) on receipt of any request to change the allocation
of premiums to the Fixed Account and Sub-Account of the Variable Account, (2) on
receipt of any request to begin a Dollar Cost Averaging service, (3) upon
receipt of any request to transfer Accumulation Value among the Fixed Account or
Sub-Accounts, or (4) if the policy is in the grace period or the Accumulation
Value, less any Loan Amount, is less than $7,500 on any Valuation Date when
Portfolio Rebalancing transfers are scheduled.

We reserve the right to discontinue, modify, or suspend this service. Any
such modification or discontinuation could affect Portfolio Rebalancing services
currently in effect, but only after 30 days notice to affected Policy owners. We
currently make no charge for these services, although we reserve the right to
make charges for these services in the future.

TRANSFER LIMITS. We currently do not limit the number of transfers in a
Policy Year. We reserve the right to limit you to no more than 12 transfers per
Policy Year. All transfers that are effective on the same Valuation Date will be
treated as one transfer transaction. Transfers made due to the Dollar Cost
Averaging or Portfolio Rebalancing services do not currently count toward the
limit on the number of transfers.

TRANSFER CHARGES. We currently charge a $25 fee per transfer for transfers
in excess of 24 per Policy Year for the duration of the Policy. We reserve the
right to make a charge not to exceed $25 per transfer for any transfers in
excess of 12 per Policy Year. See "Deductions and Charges -- Partial Withdrawal
and Transfer Charges." In no event, however, will we impose any charge in
connection with the exercise of a conversion right, or transfers occurring as
the result of Policy loans, Dollar Cost Averaging, Portfolio Rebalancing, or
automatic withdrawals. All transfers are also subject to any charges and
conditions imposed by the Fund whose shares are involved. We will treat all
transfers that are effective on the same Valuation Date as one transfer
transaction for purposes of assessing any transfer charge.

POLICY LOANS

GENERAL. As long as the Policy remains in effect, you may borrow money from
us at any time after the first Policy Year using the Policy as security for the
loan. The maximum amount you may borrow at any time

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is equal to the loan value of the Policy, which is equal to the Cash Value less
the existing Loan Amount. Each Policy loan must be at least $500.

You can make loan requests in writing or by telephoning us on any Valuation
Date. Any loan request in excess of $25,000 will require a Signature Guarantee.
Telephone loan requests cannot exceed $10,000. We currently do not require any
election form to make telephone loan requests. We will employ reasonable
procedures to confirm that loan requests made by telephone are genuine. In the
event we do not employ such procedures, we may be liable for any losses due to
unauthorized or fraudulent instructions. Such procedures may include, among
others, requiring forms of personal identification prior to acting upon
telephone instructions, providing written confirmations of such instructions
and/or tape recording telephone instructions.

Policy loans have priority over the claims of any assignee or other person.
You may repay a Policy loan in whole or in part at any time.

We will normally pay the loan proceeds to you within seven days after we
receive your request. We may postpone payment of loan proceeds to you under
certain circumstances. See "General Provisions -- Postponement of Payments."

Payments you make generally will be treated as premium payments, rather
than Policy loan repayments, unless you indicate that we should treat the
payment otherwise or unless we decide, at our discretion, to apply the payment
as a Policy loan repayment. As a result, unless you indicate that a payment is a
loan repayment, all payments you make to the Policy will generally be subject to
the Premium Expense Charge. See "Deductions and Charges -- Premium Expense
Charge."

IMMEDIATE EFFECT OF POLICY LOANS. When we make a Policy loan, we will
segregate an amount equal to the Policy loan (which includes interest payable in
advance) within the Accumulation Value of your Policy and held in the Fixed
Account as security for the loan. As described below, you will pay interest to
us on the Policy loan, but we will also credit interest to you on the amount
held in the Fixed Account as security for the loan. We will include the amount
segregated in the Fixed Account as security for the Policy loan as part of the
Fixed Accumulation Value under the Policy, but we will credit that amount with
interest on a basis different from other amounts in the Fixed Account.

Unless you specify differently, amounts held as security for the Policy
loan will come proportionately from the Fixed Accumulation Value and the
Variable Accumulation Value (with the proportions being determined as described
below). We will transfer assets equal to the portion of the Policy loan coming
from the Variable Accumulation Value from the Sub-Accounts of the Variable
Account to the Fixed Account, THEREBY REDUCING THE ACCUMULATION VALUE HELD IN
THE SUB-ACCOUNTS. We do not treat these transfers as transfers for the purposes
of assessing the transfer charge or calculating the limit on the number of
transfers.

If you request an additional loan, we add the new loan amount to your
existing Policy loan. This way, there is only one loan outstanding on your
Policy at any time.

EFFECT ON INVESTMENT PERFORMANCE. Amounts coming from the Variable Account
as security for Policy loans will no longer participate in the investment
performance of the Variable Account. We will credit all amounts held in the
Fixed Account as security for Policy loans (that is, the Loan Amount) with
interest at an effective annual rate currently equal to 4.00%. WE WILL NOT
CREDIT ADDITIONAL INTEREST TO THESE AMOUNTS. On the Policy Anniversary, we will
allocate any interest credited on these amounts to the Fixed Account and the
Variable Account according to the premium allocation then in effect. See
"Payment and Allocation of Premiums -- Allocating Premiums."

Although you may repay Policy loans in whole or in part at any time before
the Insured's Age 100, Policy loans will permanently affect the Policy's
potential Accumulation Value. As a result, to the extent that the Death Benefit
depends upon the Accumulation Value (see "Death Benefit -- Death Benefit
Options"), Policy loans will also affect the Death Benefit under the Policy.
This effect could be favorable or unfavorable depending on whether the
investment performance of the assets allocated to the Sub-Account(s) is less
than or greater than the interest being credited on the assets transferred to
the Fixed Account while the loan is

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outstanding. Compared to a Policy under which no loan is made, values under the
Policy will be lower when such interest credited is less than the investment
performance of assets held in the Sub-Account(s).

EFFECT ON POLICY COVERAGE. We will notify you if, on any Monthly
Anniversary, the Loan Amount is greater than the Accumulation Value less the
then applicable Surrender Charge. If we do not receive sufficient payment within
61 days from the date we send notice to you, the Policy will lapse and terminate
without value. Our written notice to you will indicate the amount of the payment
required to avoid lapse. The Policy may, however, later be reinstated. See
"Policy Lapse and Reinstatement."

A Policy loan may also cause termination of the Death Benefit Guarantees,
because we deduct the Loan Amount from the total premiums paid in calculating
whether you have paid sufficient premiums in order to maintain the Death Benefit
Guarantees. See "Death Benefit Guarantees."

We will reduce proceeds payable upon the death of the Insured by any Loan
Amount.

INTEREST. The interest rate charged on Policy loans will be an annual rate
of 5.66%, payable in advance. After the tenth Policy Year, we will charge
interest at an annual rate of 3.85%, payable in advance, on that portion of your
Loan Amount that is not in excess of (1) the Accumulation Value, less (2) the
total of all premiums paid and all partial withdrawals. We will charge interest
on any excess of this amount at the annual rate of 5.66%, payable in advance.

Interest is payable in advance (for the rest of the Policy Year) at the
time any Policy loan is made and at the beginning of each Policy Year thereafter
(for that entire Policy Year). If you do not pay interest when due, we will
deduct it from the Cash Surrender Value as an additional Policy loan (see
"Immediate Effect of Policy Loans" above) and we will add it to the existing
Loan Amount.

Because we charge interest in advance, we will refund any interest that we
have not earned to you upon lapse or surrender of the Policy or repayment of the
Policy loan.

REPAYMENT OF LOAN AMOUNT. You may repay the loan amount at any time. If not
repaid, we will deduct the Loan Amount from any amount payable under the Policy.
As described above, unless you provide us with notice to the contrary, we
generally will treat any payments on the Policy as premium payments, which are
subject to the Premium Expense Charge, rather than repayments on the Loan
Amount. Any repayments on the Loan Amount will result in amounts being
reallocated from the Fixed Account and to the Sub-Accounts of the Variable
Account according to your current premium allocation.

TAX CONSIDERATIONS. A Policy loan may have tax consequences depending on
the circumstances of the loan. See "Federal Tax Matters -- Tax Status of the
Policy."

FREE LOOK AND CONVERSION RIGHTS

FREE LOOK RIGHTS

The Policy provides for an initial free look period during which you have a
right to return the Policy for cancellation and receive a refund of all premiums
paid. You must return the Policy to us or your agent and ask us to cancel the
Policy by midnight of the 10th day after receiving it.

NOT TAKEN POLICIES. If you return your Policy to us after the end of the
free look period, but within 120 days after the Policy Issue Date, we call your
Policy a "not taken." By current administrative practice which we may change at
any time in our sole discretion and without notice to you, we limit the
Surrender Charge on not taken Policies to not more than $50. After 120 days, we
will apply the full Surrender Charge to all policy lapses and surrenders.

CONVERSION RIGHTS

We provide you with an option to convert the Policy or any requested
increase in Face Amount to a life insurance policy under which the benefits do
not vary with the investment experience of the Variable Account. This option is
made available by permitting you to transfer all or a part of your Variable
Accumulation Value

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to the Fixed Account. If you indicate that you are making the transfer in
exercise of your conversion right, we will not assess any transfer charge on the
transfer, and the transfer will not count against the limit on the number of
transfers. At the time of such transfer, there is no effect on the Policy's
Death Benefit, Face Amount, net amount at risk, Rate Class(es) or Issue Age --
only the method of funding the Accumulation Value under the Policy will be
affected. See "Death Benefit," "Accumulation Value" and Appendix A, "The Fixed
Account." We will automatically credit all future premium payments on the policy
to the Fixed Account unless you request a different allocation.

ADDITIONAL INFORMATION ON THE INVESTMENTS OF THE VARIABLE ACCOUNT

INVESTMENT LIMITS

Although the Variable Account currently consists of 37 investment options,
we currently only permit you to participate in a maximum of 17 investment
options over the lifetime of your Policy. You do not have to choose your
investment options in advance, but once you participate in the 17th Fund since
your Policy was issued, you would only be able to transfer within those 17 Funds
already used and which are still available.

The Fund shares are sold to separate accounts of insurance companies. These
insurance companies may or may not be affiliated with us. This is known as
"shared funding." The Funds may sell shares as the underlying investment for
both variable annuity and variable life insurance contracts. This process is
known as "mixed funding."

The Funds may sell shares to certain qualified pension and retirement plans
that qualify under Section 401 of the Code. As a result, a material conflict of
interest may arise between insurance companies, owners of different types of
contracts and retirement plans, or their participants.

If there is a material conflict, we will consider what should be done,
including removing the Fund from the Variable Account. There are certain risks
with mixed and shared funding, and with selling shares to qualified pension and
retirement plans. See the Fund's prospectuses.

There also is a possibility that one Fund might become liable for any
misstatement, inaccuracy or incomplete disclosure in another Fund's prospectus.

The Funds distribute dividends and capital gains. However, we automatically
reinvest distributions in additional Fund shares, at net asset value. The
Sub-Account receives the distributions which are then reflected in the Unit
Value of that Sub-Account. See "Accumulation Value."

ReliaStar has entered into service arrangements with the managers or
distributors of certain of the Funds. Under these arrangements, ReliaStar or its
affiliates may receive compensation from affiliates of the Funds. This
compensation is for providing administrative, recordkeeping, distribution and
other services to the Funds or their affiliates. Such compensation is paid based
upon assets invested in the particular Funds, or based on the aggregated net
asset goals. Payments of such amounts by an affiliate or affiliates of the Funds
do not increase the fees paid by the Funds or their shareholders. The percentage
paid may vary from one Fund to another. The amounts we receive may be
significant.

ADDITION, DELETION, OR SUBSTITUTION OF INVESTMENTS

We reserve the right, subject to compliance with applicable law, to make
additions to, deletions from, or substitutions for the shares that are held by
the Variable Account or that the Variable Account may purchase.

- We reserve the right to establish additional Sub-Accounts of the Variable
Account, each of which would invest in a new Fund, or in shares of
another investment company, with a specified investment objective. We may
establish new Sub-Accounts when, in our sole discretion, marketing needs
or investment conditions warrant, and we will make any new Sub-Accounts
available to existing Policy owners on a basis we determine.

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- We may eliminate one or more Sub-Accounts, or prohibit additional new
premium or transfers into a Sub-Account, if, in our sole discretion,
marketing, tax, regulatory requirements or investment conditions warrant.

- We reserve the right to eliminate the shares of any of the Funds and to
substitute shares of another Fund or of another open-end, registered
investment company. The new Funds may have higher fees and charges than
the ones they replaced, and not all Funds may be available to all classes
of Policies. We will not substitute any shares attributable to your
interest in a Sub-Account of the Variable Account without notice and
prior approval of the SEC, to the extent required by the Investment
Company Act of 1940 or other applicable law.

Nothing contained herein shall prevent the Variable Account from:

- Purchasing other securities of other Funds or classes of policies,

- Permitting a conversion between Funds or classes of policies on the basis
of requests made by Policy owners, or

- Substituting the shares of one fund for shares of another fund in the
event of a merger of funds or similar transaction.

In the event of any such substitution, deletion or change, we may make
appropriate changes in this and other policies to reflect such substitution,
deletion or change. If you allocated all or a portion of your investments to any
of the current funds that are being substituted for or deleted, you may transfer
the portion of the Accumulation Value affected without paying a transfer charge.

If we deem it to be in the best interests of persons having voting rights
under the Policies, we may:

- operate the Variable Account as a management company under the 1940 Act,

- deregister the Variable Account under the 1940 Act in the event such
registration is no longer required, or

- combine the Variable Account with our other separate accounts.

VOTING RIGHTS

You have the right to instruct us how to vote the Fund shares attributable
to the Policy at regular meetings and special meetings of the Funds. We will
vote the Fund shares held in Sub-Accounts according to the instructions
received, as long as:

- The Variable Account is registered as a unit investment trust under the
Investment Company Act of 1940; and

- The Variable Account's assets are invested in Fund shares.

If we determine that, because of applicable law or regulation, we do not
have to vote according to the voting instructions received, we will vote the
Fund shares at our discretion.

All persons entitled to voting rights and the number of votes they may cast
are determined as of a record date, selected by us, not more than 90 days before
the meeting of the Fund. All Fund proxy materials and appropriate forms used to
give voting instructions will be sent to persons having voting interests.

We will vote any Fund shares held in the Variable Account for which we do
not receive timely voting instructions, or which are not attributable to Policy
owners, in proportion to the instructions received from all Policy owners having
a voting interest in the Fund. Any Fund shares held by us or any of our
affiliates in general accounts will, for voting purposes, be allocated to all
separate accounts having voting interests in the Fund in proportion to each
account's voting interest in the respective Fund, and will be voted in the same
manner as are the respective account's votes.

Owning the Policy does not give you the right to vote at meetings of our
stockholders.

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DISREGARDING VOTING INSTRUCTIONS. We may, when required by state insurance
regulatory authorities, disregard voting instructions if the instructions
require that the shares be voted so as to cause a change in the
subclassification or investment objective of any Fund or to approve or
disapprove an investment advisory contract for any Fund. In addition, we may
disregard voting instructions in favor of changes initiated by a Policy owner in
the investment policy or the investment adviser of any Fund if we reasonably
disapprove of such changes. We would disapprove a change only if the proposed
change is contrary to state law or prohibited by state regulatory authorities,
or we determine that the change would have an adverse effect on the Variable
Account in that the proposed investment policy for a Fund may result in
speculative or unsound investments. In the event we do disregard voting
instructions, we will include a summary of that action and the reasons for such
action in the next annual report to owners.

PAID-UP LIFE INSURANCE OPTIONS

Before Age 100, if the Insured is living and the Policy is in force, you
may make a written request to direct us to apply the Cash Surrender Value of the
Policy to purchase paid-up life insurance. The amount by which this insurance
will exceed its cash value cannot be greater than the amount by which the
Policy's Death Benefit exceeds the Policy's Accumulation Value. We will pay you
in cash any Cash Surrender Value not used to purchase paid-up life insurance.
Any cash paid out or Policy loans forgiven may be considered a taxable event.

GENERAL PROVISIONS

OWNERSHIP

While the Insured is alive, subject to the Policy's provisions you may:

- Change the amount and frequency of premium payments.

- Change the allocation of premiums.

- Change the Death Benefit Option.

- Change the Face Amount.

- Make transfers between accounts.

- Surrender the Policy for cash.

- Make a partial withdrawal for cash.

- Receive a cash loan.

- Assign the Policy as collateral.

- Change the beneficiary.

- Transfer ownership of the Policy.

- Enjoy any other rights the Policy allows.

Some of these transactions may have tax consequences and you should
consider any such tax consequences before taking any of these actions.

PROCEEDS

At the Insured's death, the proceeds payable include the Death Benefit then
in force:

- Plus any additional amounts provided by rider on the life of the Insured;

- Plus any Policy loan interest that we have collected but not earned;

- Minus any Loan Amount; and

- Minus any unpaid Monthly Deductions.

We may pay the proceeds in a lump sum or, if you choose, we may apply the
proceeds to one of the Settlement Options. If you or the Beneficiary do not
select a Settlement Option, and the proceeds are at least

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$5,000, we may deposit the lump-sum payment into an interest bearing special
account maintained by a financial institution and retained by us in our General
Account. In that case, we provide the Beneficiary with a checkbook to access
these funds from that special account. The Beneficiary will receive any interest
on the proceeds deposited in that account.

BENEFICIARY

You may name one or more beneficiaries on the application when you apply
for the Policy. You may later change beneficiaries by written request. You may
also name a beneficiary whom you cannot change without his or her consent
(irrevocable beneficiary). If no beneficiary is surviving when the Insured dies,
we will pay the Death Benefit to you, if surviving, or otherwise to your estate.

POSTPONEMENT OF PAYMENTS

We generally make payments from the Variable Account for Death Benefits,
cash surrender, partial withdrawal, or loans within seven days after we receive
all the documents required for the payments.

We may, however, delay making a payment when we are not able to determine
the Variable Accumulation Value because (1) the New York Stock Exchange is
closed, other than customary weekend or holiday closings, or the SEC restricts
trading on the New York Stock Exchange, (2) the SEC by order permits
postponement for the protection of Policyholders, or (3) the SEC determines that
an emergency exists, which makes disposing of securities not reasonably
practicable, or which makes it not reasonably practicable to determine the value
of the Variable Account's net assets. We may also postpone transfers and
allocations to and against any Sub-Account of the Variable Account under these
circumstances.

We may delay any of the payments that we make from the Fixed Account up to
six months from the date we receive the documents required. We will pay interest
at the same rate we are currently paying on proceeds at death from the date of
the request to the date of payment if we delay payment more than 10 days. We
will not credit any additional interest to any delayed payments.

SETTLEMENT OPTIONS

Settlement Options are ways you can choose to have the Policy's proceeds
paid. These options apply to proceeds paid:

- At the Insured's death.

- On total surrender of the Policy.

We pay the proceeds to one or more payees. We may pay the proceeds in a
lump sum or we may apply the proceeds to one of the following Settlement
Options. You may request that we use a combination of Options. You must apply at
least $2,500 to any option for each payee under that Option. Under an
installment Option, each payment must be at least $25. We may adjust the
interval to make each payment at least $25.

Proceeds applied to any Option no longer earn interest at the rate applied
to the Fixed Account or participate in the investment performance of the Funds.

Option 1 -- Proceeds are left with us to earn interest. Withdrawals and any
changes are subject to our approval.

Option 2 -- Proceeds and interest are paid in equal installments of a
specified amount until the proceeds and interest are all paid.

Option 3 -- Proceeds and interest are paid in equal installments for a
specified period until the proceeds and interest are all paid.

Option 4 -- The proceeds provide an annuity payment with a specified number
of months "certain." The payments are continued for the life of
the primary payee. If the primary payee dies before the certain
period is over, the remaining payments are paid to a contingent
payee.

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Option 5 -- The proceeds provide a life income for two payees. When one
payee dies, the surviving payee receives two-thirds of the
amount of the joint monthly payment for life.

Option 6 -- The proceeds are used to provide an annuity based on the rates
in effect when the proceeds are applied. We do not apply this
Option if a similar option would be more favorable to the payee
at that time.

INTEREST ON SETTLEMENT OPTIONS. We base the interest rate for proceeds
applied under Options 1 and 2 on the interest rate we declare on funds that we
consider to be in the same classification based on the Option, restrictions on
withdrawal, and other factors. The interest rate will never be less than an
effective annual rate of 2.00%.

In determining amounts we pay under Options 3 and 4, we assume interest at
an effective annual rate of 2.00%. Also, for Option 3 and "certain" periods
under Option 4, we credit any excess interest we may declare on funds that we
consider to be in the same classification based on the Option, restrictions on
withdrawal, and other factors.

INCONTESTABILITY

After the Policy has been in force during the Insured's lifetime for two
years from the Policy's Issue Date, we cannot claim the Policy is void or refuse
to pay any proceeds unless the Policy terminated before the death of the
Insured.

If you make a Face Amount increase or a premium payment which requires
proof of insurability, the corresponding Death Benefit increase has its own
two-year contestable period measured from the date of the increase.

If the Policy is reinstated, we measure the contestable period from the
date of reinstatement with respect to statements made on the application for
reinstatement.

MISSTATEMENT OF AGE AND SEX

If the Insured's Age or sex or both are misstated (except where unisex
rates apply), the Death Benefit will be the amount that the most recent cost of
insurance would purchase using the current cost of insurance rate for the
correct Age and sex.

SUICIDE

If the Insured commits suicide within two years of the Policy's Issue Date,
we do not pay the Death Benefit. Instead, we will refund all premiums paid,
minus the Loan Amount and any partial withdrawals.

If you make a Face Amount increase or a premium payment which requires
proof of insurability, the corresponding Death Benefit increase has its own
two-year suicide limitation for the proceeds associated with that increase. If
the Insured commits suicide within two years of the effective date of the
increase, we pay the Death Benefit prior to the increase and refund the cost of
insurance for that increase.

TERMINATION

The Policy terminates when any of the following occurs:

- The Policy lapses. See "Policy Lapse and Reinstatement."

- The Insured dies.

- You surrender the Policy for its Cash Surrender Value.

- We amend the Policy according to the amendment provision described below
and you do not accept the amendment.

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AMENDMENT

We reserve the right to amend the Policy, in order to include any future
changes relating to the following:

- Any SEC rulings and regulations.

- The Policy's qualification for treatment as a life insurance policy
under the following:

-- The Code.

-- Internal Revenue Service rulings and regulations.

-- Any requirements imposed by the Internal Revenue Service.

REPORTS

ANNUAL STATEMENT. We will send you an Annual Statement once each year free
of charge, showing the Face Amount, Death Benefit, Accumulation Value, Cash
Surrender Value, Loan Amount, premiums paid, Planned Periodic Premiums, interest
credits, partial withdrawals, transfers, and charges since the last statement.

Additional statements are available upon request. We may make a charge not
to exceed $50.00 for each additional Annual Statement you request.

We send semi-annual reports with financial information on the Funds,
including a list of investment holdings of each portfolio.

We send confirmation notices to you throughout the year for certain Policy
transactions such as partial withdrawals and loans.

PROJECTION REPORT. Upon request, we will provide you a report projecting
future results based on the Death Benefit Option you specify, the Planned
Periodic Premiums you specify, the Accumulation Value of your Policy at the end
of the prior Policy Year. We may make a charge not to exceed $50.00 for each
Projection Report you request.

OTHER REPORTS. The Company will mail to you at your last known address of
record at least annually a report containing such information as may be required
by any applicable law. To reduce expenses, only one copy of most financial
reports and prospectuses will be mailed to your household, even if you or other
persons in your household have more than one contract issued by ReliaStar Life
Insurance Company of New York or an affiliate. Call 1-800-456-6965 if you need
additional copies of financial reports, prospectuses, historical account
information, or annual or semi-annual reports, or if you would like to receive
one copy for each contract in all future mailings.

DIVIDENDS

The Policy does not entitle you to participate in our surplus. We do not
pay you dividends under the Policy.

The Sub-Account receives any dividends paid by the related Fund. Any such
dividend is credited to you through the calculation of the Sub-Account's daily
Unit Value.

COLLATERAL ASSIGNMENT

You may assign the benefits of the Policy as collateral for a debt. This
limits your rights to the Cash Surrender Value and the beneficiary's rights to
the proceeds. An assignment is not binding on us until we receive written
notice. Assigning the Policy may have tax consequences. You should consult a tax
advisor before assigning the Policy.

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OPTIONAL INSURANCE BENEFITS

The Policy can include additional benefits, in the form of riders to the
Policy, if our requirements for issuing such benefits are met. We currently
offer the following benefit riders:

ACCELERATED BENEFIT RIDER. Under certain circumstances we may pay a part of
the Death Benefit to you when the Insured has been diagnosed as having a
terminal illness. See "Accelerated Benefit Rider."

ACCIDENTAL DEATH BENEFIT RIDER. Provides an additional benefit if the
Insured dies from an accidental injury.

ADDITIONAL INSURED RIDER. Provides level term coverage for the Insured's
spouse, or a child of the Insured.

WAIVER OF MONTHLY DEDUCTION RIDER. The Monthly Deduction for the Policy is
waived while the Insured is totally disabled under the terms of the rider.

COST OF LIVING INCREASE RIDER. Provides optional increases in Face Amount
on the life of the Insured every two years based on the cost of living without
evidence of insurability.

TOTAL DISABILITY SPECIFIED PREMIUM RIDER. Contributes a specified amount of
premium to the Policy each month while the Insured is totally disabled under the
terms of the rider.

TERM RIDER. Provides a level term life insurance benefit on the death of
the Insured if death occurs prior to Age 80. The cost of insurance rates are
expected to be the same as for the base Policy. The Monthly Amount Charge Rate
is lower than for equivalent coverage provided by a base Policy. The Term Rider
does not have a Surrender Charge.

The Term Rider may be exchanged for an Increase in the base Face Amount.
The exchange will not require evidence of insurability if it is made at Age 80,
or when the Death Benefit is equal to the Accumulation Value multiplied by the
Corridor percentage. The Increase will not have a Surrender Charge. The Cost of
Insurance and Monthly Amount Charge Rates for the Increase will be based on the
Age, Sex, Rate Class, and Effective Date of the Term Rider.

The Extended Death Benefit Guarantee will be shortened when the Term Rider
is attached to a Policy.

There may be times when it will be to your economic advantage to include a
significant portion of your insurance coverage under a term rider. In some other
circumstances, it may be in your interest to obtain a Policy without Term Rider
coverage. These circumstances depend on many factors, including the premium
levels and amount and duration of coverage you choose, as well as the age, sex,
and rate class of the Insured.

FEDERAL TAX MATTERS

INTRODUCTION

The following summary provides a general description of the Federal income
tax considerations associated with the Policy and does not purport to be
complete or to cover all tax situations. This discussion is not intended as tax
advice. Counsel or other competent tax advisors should be consulted for more
complete information. This discussion is based upon our understanding of the
present Federal income tax laws. No representation is made as to the likelihood
of continuation of the present Federal income tax laws or as to how they may be
interpreted by the Internal Revenue Service (the "IRS").

Any qualified plan contemplating the purchase of a life policy should
consult a tax advisor.

TAX STATUS OF THE POLICY

In order to qualify as a life insurance contract for Federal income tax
purposes and to receive the tax treatment normally accorded life insurance
contracts under Federal tax law, a Policy must satisfy certain requirements
which are set forth in the Internal Revenue Code. Guidance as to how these
requirements are to be applied is limited. Nevertheless, the Company believes
that it is reasonable to conclude that the Policies

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49

satisfy the applicable requirements. There is less guidance with respect to
Policies issued on a substandard basis (i.e., a premium class involving higher
than standard mortality risk), and it is not clear whether such a Policy would
satisfy the applicable requirements, particularly if the owner pays the full
amount of premiums permitted under the Policy. If it is subsequently determined
that a Policy does not satisfy the applicable requirements, the Company may take
appropriate steps to bring the Policy into compliance with such requirements and
reserves the right to restrict Policy transactions in order to do so.

In certain circumstances, owners of variable life insurance contracts have
been considered for Federal income tax purposes to be the owners of the assets
of the variable account supporting their policies due to their ability to
exercise investment control over these assets. Where this is the case, the
Policy owners have been currently taxed on income and gains attributable to the
variable account assets. There is little guidance in this area, and some
features of the Policies, such as the flexibility of an owner to allocate
premium payments and Policy Accumulation Values, have not been explicitly
addressed in published rulings. While the Company believes that the Policies do
not give owners investment control over Variable Account assets, the Company
reserves the right to modify the Policies as necessary to prevent an owner from
being treated as the owner of the Variable Account assets supporting the Policy.

In addition, the Code requires that the investments of the Variable Account
be "adequately diversified" in order for the Policies to be treated as life
insurance contracts for Federal income tax purposes. It is intended that the
Variable Account, through the Funds, will satisfy these diversification
requirements.

The following discussion assumes that the Policy will qualify as a life
insurance contract for Federal income tax purposes.

TAX TREATMENT OF POLICY BENEFITS

IN GENERAL. The Company believes that the Death Benefit under a Policy
should be excludible from the gross income of the Beneficiary. Federal, state
and local transfer, and other tax consequences of ownership or receipt of Policy
proceeds depend on the circumstances of each owner or beneficiary. A tax advisor
should be consulted on these consequences.

Generally, the owner will not be deemed to be in constructive receipt of
the Policy Accumulation Value until there is a distribution. When distributions
from a Policy occur, including payments arising from any maturity benefits, or
when loans are taken out from or secured by (e.g., by assignment) a Policy, the
tax consequences depend on whether the Policy is classified as a "Modified
Endowment Contract."

MODIFIED ENDOWMENT CONTRACTS. Under the Internal Revenue Code, certain life
insurance contracts are classified as "Modified Endowment Contracts," with less
favorable tax treatment than other life insurance contracts. Due to the
flexibility of the Policies as to premiums and benefits, the individual
circumstances of each Policy will determine whether it is classified as a
Modified Endowment Contract. The rules are too complex to be summarized here,
but generally depend on the amount of premiums paid during the first seven
Policy Years. Certain changes in a Policy after it is issued could also cause it
to be classified as a Modified Endowment Contract. A current or prospective
owner should consult with a competent advisor to determine whether a Policy
transaction will cause the Policy to be classified as a Modified Endowment
Contract. The Company will monitor the Policies, however, and will attempt to
notify an owner within one month of the date of any Policy transactions which if
it believes that such owner's Policy is in jeopardy of becoming a Modified
Endowment Contract. At this point, if the Policy owner wishes to avoid Modified
Endowment Contract status, he or she should, in turn, notify the Company
immediately. However, if the transaction was a premium payment, then the Policy
owner must notify the Company no later than 60 days following the Policy
Anniversary in which the premium payment occurred.

DISTRIBUTIONS FROM MODIFIED ENDOWMENT CONTRACTS. Policies classified as
Modified Endowment Contracts are subject to the following tax rules:

(1) All distributions, including distributions upon surrender and
withdrawals, will be treated as ordinary income subject to tax up to
an amount equal to the excess (if any) of the unloaned Policy
Accumulation Value (Cash Surrender Value for surrenders) immediately
before the distribution
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50

plus prior distributions over the Policy owner's total investment in
the Policy at that time. "Total investment in the Policy" means the
aggregate amount on any premiums or other considerations paid for a
Policy, plus any previously taxed distributions, minus any credited
dividends.

(2) Loans taken from or secured by (e.g., by assignment) such a Policy are
treated as distributions and taxed accordingly.

(3) A 10 percent additional income tax is imposed on the amount included
in income except where distribution is made when the Policy owner has
attained age 59 1/2 or is disabled, or where the distribution is part
of a series of substantially equal periodic payments for the life (or
life expectancy) of the Policy owner or the joint lives (or joint life
expectancies) of the Policy owner and the Policy owner's beneficiary
or designated beneficiary.

If a Policy becomes a Modified Endowment Contract, distributions that occur
during the contract year will be taxed as distributions from a Modified
Endowment Contract. In addition, distributions from a Policy within two years
before it becomes a Modified Endowment Contract will be taxed in this manner.
This means that a distribution made from a Policy that is not a Modified
Endowment Contract could later become taxable as a distribution from a Modified
Endowment Contract.

DISTRIBUTIONS FROM POLICIES THAT ARE NOT MODIFIED ENDOWMENT
CONTRACTS. Distributions from a Policy that is not a Modified Endowment Contract
are generally treated first as a recovery of a Policy owner's investment in the
Policy and only after the recovery of all investments in the Policy as taxable
income. However, certain distributions which must be made in order to enable the
Policy to continue to qualify as a life insurance contract for Federal income
tax purposes if Policy benefits are reduced during the first 15 Policy Years may
be treated in whole or in part as ordinary income subject to tax.

Finally, neither distributions from nor loans from or secured by a Policy
that is not a Modified Endowment Contract are subject to the 10 percent
additional tax.

POLICY LOANS. In general, interest on a loan from a Policy will not be
deductible. Before taking out a Policy loan, a Policy owner should consult a tax
advisor as to the tax consequences.

MULTIPLE POLICIES. All Modified Endowment Contracts that we (or our
affiliates) issue to the same Policy owner during any calendar year are treated
as one Modified Endowment Contract for purposes of determining the amount
includible in the Policy owner's income when a taxable distribution occurs.

BUSINESS USES OF POLICY. Businesses can use the Policies in various
arrangements, including nonqualified deferred compensation or salary continuance
plans, split dollar insurance plans, executive bonus plans, tax exempt and
nonexempt welfare benefit plans, retiree medical benefit plans and others. The
tax consequences of such plans may vary depending on the particular facts and
circumstances. If you are purchasing the Policy for any arrangement, the value
of which depends in part on its tax consequences, you should consult a qualified
tax adviser. In recent years, moreover, Congress has adopted new rules relating
to life insurance owned by businesses. Any business contemplating the purchase
of a new Policy or a change in an existing Policy should consult a tax adviser.

OTHER TAX CONSIDERATIONS. The transfer of the Policy or designation of a
beneficiary may have federal, state, and/or local transfer and inheritance tax
consequences, including the imposition of gift, estate, and generation-skipping
transfer taxes. For example, the transfer of the Policy to, or the designation
as a beneficiary of, or the payment of proceeds to, a person who is assigned to
a generation which is two or more generations below the generation of the Policy
owner may have generation skipping transfer tax consequences under federal tax
law. The individual situation of each Policy owner or beneficiary will determine
the extent, if any, to which federal, state, and local transfer and inheritance
taxes may be imposed and how ownership or receipt of the Policy proceeds will be
treated for purposes of federal, state and local estate, inheritance, generation
skipping and other taxes.

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POSSIBLE CHANGES IN TAXATION

Although the likelihood of legislative changes is uncertain, there is
always the possibility that the tax treatment of the Policy could change by
legislation or other means. Moreover, it is also possible that any change could
be retroactive (that is, effective prior to the date of the change). You should
consult a tax advisor with respect to legislative developments and their effect
on the Policy.

OTHER CONSIDERATIONS

The foregoing discussion is general and is not intended as tax advice. Any
person concerned about these tax implications should consult a competent tax
advisor. This discussion is based on our understanding of the present Federal
income tax laws as they are currently interpreted by the IRS. We make no
representation as to the likelihood of continuation of these current laws and
interpretations. In addition, the foregoing discussion is not exhaustive and
special rules not described in this Prospectus may be applicable in certain
situations. Moreover, we have made no attempt to consider any applicable state
or other tax laws.

TAXATION OF RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK

We do not initially expect to incur any income tax burden upon the earnings
or the realized capital gains attributable to the Variable Account. Based on
this expectation, we currently make no charge to the Variable Account for
Federal income taxes which may be attributable to the Account. If, however, we
determine that we may incur such tax burden, we may assess a charge for such
burden from the Variable Account.

We may also incur state and local taxes, in addition to premium taxes, in
several states. At present these taxes are not significant. If there is a
material change in state or local tax laws, we may make charges for such taxes,
if any, attributable to the Variable Account.

LEGAL DEVELOPMENTS REGARDING EMPLOYMENT-RELATED BENEFIT PLANS

The Policy is based on actuarial tables which distinguish between men and
women and therefore provide different benefits to men and women of the same Age.
Employers and employee organizations should consider, in consultation with legal
counsel, the impact of the Supreme Court decision of July 6, 1983 in Arizona
Governing Committee v. Norris. That decision stated that optional annuity
benefits provided under an employee's deferred compensation plan could not,
under Title VII of the Civil Rights Act of 1964, vary between men and women on
the basis of sex. Employers and employee organizations should also consider, in
consultation with legal counsel, the impact of Title VII generally, and
comparable state laws that may be applicable, on any employment-related
insurance or benefit plan for which a Policy may be purchased.

Because of the Norris decision, the charges under the Policy that vary
depending on sex may in some cases not vary on the basis of the Insured's sex.
Unisex rates to be provided by us will apply, if requested on the application,
for tax-qualified plans and those plans where an employer believes that the
Norris decision applies.

DISTRIBUTION OF THE POLICIES

We intend to sell the policies in all jurisdictions where we are licensed.

The Policies will be distributed by the general distributor, Washington
Square Securities, Inc. ("WSSI"), a Minnesota corporation, which is an affiliate
of ours. WSSI located at 20 Washington Avenue South, Minneapolis, Minnesota,
55401 is a securities broker-dealer organized on April 26, 1968 registered with
the SEC and is a member of the National Association of Securities Dealers, Inc.
("NASD"). It is primarily a mutual funds dealer and has dealer agreements under
which it markets shares of many mutual funds. It also markets limited
partnerships and other tax-sheltered or tax-deferred investments, and acts as
general distributor (principal underwriter) for variable annuity products issued
by us. The Policies may also be sold through other broker-dealers authorized by
WSSI and applicable law to do so. Registered representatives of such
broker-dealers may be paid on a different basis than described below.

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52

The Policies will be sold by licensed insurance agents who are also
registered representatives of broker-dealers registered with the SEC under the
Securities Exchange Act of 1934 who are members of the NASD. Registered
representatives who sell the Policies will receive commissions based on a
commission schedule. In the first Policy Year, commissions generally will be no
more than 55% of the premiums paid up to the Extended Minimum Monthly Premium,
plus no more than 3% of any additional premium. In any subsequent Policy Year,
commissions generally will be no more than 3% of premiums paid in that year. We
will pay corresponding commissions upon a requested increase in Face Amount. In
addition, we may pay a commission of .60% of the average monthly Accumulation
Value during each Policy Year. Further, registered representatives may be
eligible to receive certain overrides, and other benefits based on the amount of
earned commissions.

For all Policies which use the ReliaStar Life Insurance Company of New York
Variable Life Separate Account I, the aggregate amount paid to WSSI under our
Distribution Agreement was $1,312,274 in 2000, $1,345,813 in 1999, and $837,517
in 1998.

MANAGEMENT

The following is a list of current directors and executive officers of the
Company, their principal occupation and business experience.

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------

William D. Bonneville(3) Executive Vice President and Chief Administrative Officer of
ReliaStar Life Insurance Company of New York since 2000;
Senior Vice President and Chief Administrative Officer of
ReliaStar Life Insurance Company of New York from 1998 to
2000; Vice President of ReliaStar Life Insurance Company of
New York (formerly known as ReliaStar Bankers Security Life
Insurance Company) from 1996 to 1998; Vice President of
North Atlantic Life Insurance Company from 1992 to 1995
until its merger into ReliaStar Life Insurance Company of
New York.
Stephen A. Carb(1) Partner of Carb, Luria, Glassner, Cook & Kufeld LLP (New
York law firm) since 1962.
Paula Cludray-Engelke(3) Secretary of Ameribest Life Insurance Company, Equitable
Life Insurance Company of Iowa, First Columbine Life
Insurance Company, Golden American Life Insurance Company,
Life Insurance Company of Georgia, Midwestern United Life
Insurance Company, Security Life of Denver Insurance
Company, Southland Life Insurance Company, United Life and
Annuity Insurance Company and Washington Square Securities,
Inc. since 2001; Secretary of Northern Life Insurance
Company, ReliaStar Life Insurance Company, ReliaStar Life
Insurance Company of New York and Security-Connecticut Life
Insurance Company since 2000; Secretary of Aetna Insurance
Company of America and Aetna Life Insurance and Annuity
Company since 2001; Assistant Secretary of Aetna Insurance
Company of America and Aetna Life Insurance and Annuity
Company since 2000.
James G. Cochran(3) Executive Vice President of ReliaStar Life Insurance Company
of New York since 1997; Vice President of ReliaStar Life
Insurance Company in 1999; Senior Vice President of
ReliaStar United Services Life Insurance Company from 1990
to 1996 until its merger into ReliaStar Life Insurance
Company.

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53

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------

R. Michael Conley(1) Retired 1998; Senior Vice President of ReliaStar Financial
Corp. from 1991 to 1998; Senior Vice President, ReliaStar
Employee Benefits of ReliaStar Life Insurance Company from
1988 to 1998; President of NWNL Benefits Corporation from
1988 to 1998; Executive Vice President of ReliaStar Life
Insurance Company of New York 1996 to 1998; Director of
ReliaStar Life Insurance Company of New York.
Richard R. Crowl(2) Senior Vice President, General Counsel and Secretary of
ReliaStar Financial Corp. since 1996; Senior Vice President
and General Counsel of Security-Connecticut Life Insurance
Company since 1997; Senior Vice President and General
Counsel of ReliaStar Life Insurance Company, Northern Life
Insurance Company, and ReliaStar Life Insurance Company of
New York since 1996; Senior Vice President and General
Counsel of ReliaStar United Services Life Insurance Company
from 1996 to 1998 at which time this company merged into
ReliaStar Life Insurance Company; Senior Vice President and
General Counsel of ReliaStar Investment Research, Inc.
(formerly known as Washington Square Advisers, Inc.) since
1986; Vice President and Associate General Counsel of
ReliaStar Financial Corp. from 1989 to 1996; Vice President
and Associate General Counsel of ReliaStar Life Insurance
Company from 1985 to 1996; Director of various subsidiaries
of ING America Insurance Holdings, Inc.
James R. Gelder(2) Chief Executive Officer, U.S. Life Group of ReliaStar Life
Insurance Company, Security Life of Denver Insurance
Company, Equitable Life Insurance Company of Iowa,
Midwestern United Life Insurance Company and Southland Life
Insurance Company since 2001; Senior Vice President,
ReliaStar Financial Corp. since 2000; President and Chief
Executive Officer of ReliaStar Life Insurance Company of New
York since 1999; Senior Vice President of ReliaStar Life
Insurance Company from 1999 to 2001; Executive Vice
President of ReliaStar Life Insurance Company of New York
from 1998 to 1999; President of Security-Connecticut Life
Insurance Company since 1998; Chief Executive Officer of
Security-Connecticut Life Insurance Company from 1998 to
2001; Executive Vice President and Chief Operating Officer
of Security-Connecticut Life Insurance Company from 1997 to
1998; Vice President of ReliaStar Life Insurance Company
from 1994 to 1999; Director and Officer of various
subsidiaries of ReliaStar Financial Corp.
Ambassador Ulric Haynes,
Jr.(1) Dean of the School of Business and Executive Dean for
University International Relations of Hofstra University
since 1991; Director of DYNAX Solutions, Inc. from 2000 to
present; Director of INNCOM International Inc. from 1999 to
present; Director of Pall Corporation from 1994 to present;
Director of HSBC USA Inc. (formerly Marine Midland Bank)
from 1969 to present.

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PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------

Wayne R. Huneke(2) Chief Financial Officer, Aetna Insurance Company of America,
Aetna Life Insurance and Annuity Company, Ameribest Life
Insurance Company, Equitable Life Insurance Company of Iowa,
First Columbine Life Insurance Company, Golden American Life
Insurance Company, Life Insurance Company of Georgia,
Midwestern United Life Insurance Company, Security Life of
Denver Insurance Company, Southland Life Insurance Company
and USG Annuity & Life Company since 2001; Vice President
and Chief Financial Officer, ReliaStar Life Insurance
Company of New York since 2000; Director of Ameribest Life
Insurance Company, Equitable Life Insurance Company of Iowa,
First Columbine Life Insurance Company, Golden American Life
Insurance Company, Life Insurance Company of Georgia,
Midwestern United Life Insurance Company, Security Life of
Denver Insurance Company, Southland Life Insurance Company,
USG Annuity & Life Company and United Life and Annuity
Insurance since 2001; Chief Financial Officer, ING North
America Insurance Corporation since 2000; Chief Financial
Officer, ING America Insurance Holdings, Inc. since 2000;
Director of Aetna Insurance Company of America, Aetna Life
Insurance and Annuity Company, Aetna Retirement Holdings,
Inc. and Aetna Retirement Services, Inc. since 2000; Senior
Executive Vice President of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company since 1999; Senior Vice
President of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1994 to 1999; Director of ReliaStar
Life Insurance Company and ReliaStar Life Insurance Company
of New York since 1995; Chief Financial Officer and
Treasurer of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1994 to 1997.
Mark S. Jordahl(2) Vice President and Chief Investment Officer, ReliaStar Life
Insurance Company of New York since 2000; Vice President and
Chief Investment Officer of Northern Life Insurance Company
since 2000; President and Chief Executive Officer of
ReliaStar Investment Research, Inc. since 1998; Senior Vice
President and Chief Investment Officer of ReliaStar Life
Insurance Company and ReliaStar Financial Corp. since 1998;
Senior Vice President of Security-Connecticut Life Insurance
Company since 1998; Chief Investment Officer of
Security-Connecticut Life Insurance Company since 2000; Vice
President of ReliaStar Life Insurance Company and ReliaStar
Financial Corp from 1987 to 1998.
Kenneth U. Kuk(2) Executive Vice President of ReliaStar Financial Corp. and
ReliaStar Life Insurance Company since 1999; Senior Vice
President of ReliaStar Financial Corp. and ReliaStar Life
Insurance Company from 1996 to 1999; Vice President of
ReliaStar Life Insurance Company from 1996 to 1998; Vice
President of ReliaStar Financial Corp. from 1991 to 1998;
President of Washington Square Advisers, Inc. from 1995 to
1998; Chairman of ReliaStar Mortgage Corporation from 1988
to 1998; Director of ReliaStar Life Insurance Company of New
York.

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55

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------

James R. Miller(2) Senior Vice President of ReliaStar Life Insurance Company
since 2000; Senior Vice President, Chief Financial Officer
and Treasurer, of ReliaStar Life Insurance Company from 1997
to 2000; Senior Vice President and Chief Financial Officer
of ReliaStar Financial Corp. since 2000; Senior Vice
President, Treasurer and Chief Financial Officer of
ReliaStar Financial Corp. from 1997 to 2000; Senior Vice
President, Chief Financial Officer and Treasurer of
ReliaStar Financial Corp. and ReliaStar Life Insurance
Company since 1997; Executive Vice President and Chief
Operating Officer of Northern Life Insurance Company from
1992 to 1997; Vice President of ReliaStar Financial Corp.
from 1985 to 1992; Director of ReliaStar Life Insurance
Company from 1997 to 2000; Director, Vice President and
Controller of ReliaStar Life Insurance Company of New York
since 1998.
David S. Pendergrass(3) Vice President and Treasurer, ING North America Insurance
Corp. since 1995; Vice President and Treasurer, Life
Insurance Company of Georgia, Southland Life Insurance
Company since 1997; Vice President and Treasurer, ING
America Insurance Holdings, Inc., Ameribest Life Insurance
Company, Golden American Life Insurance Company and United
Life and Annuity Company since 1999; Treasurer, ING America
Life Corporation since 1999; Vice President and Treasurer,
Security Life of Denver Insurance Company, Midwestern United
Life Insurance Company, First ING Life Insurance Company of
New York since 1996; Vice President and Treasurer, Equitable
of Iowa Companies, Inc., Equitable Life Insurance Company of
Iowa, USG Annuity & Life Company since 1998; Second Vice
President, Security Life of Denver International since 1998;
Vice President and Treasurer, First Columbine Life Insurance
Company, ReliaStar Life Insurance Company, ReliaStar Life
Insurance Company of New York, Northern Life Insurance
Company, Security-Connecticut Life Insurance Company,
ReliaStar Financial Corp, Aetna Insurance Company of
America, Aetna Life Insurance & Annuity Company, Aetna
Retirement Holdings, Inc., Aetna Retirement Services, Inc.,
Lion Custom Investments, LLC, Lion II Custom Investments
LLC., Lion Connecticut Holdings, Orange Investment
Enterprises, Inc. since 2000; Treasurer, MIA Office
Americas, Inc., since 2001; Vice President and Treasurer,
Equitable American Life Insurance Company from 1998-2000.
Fioravante G. Perrotta(1) Retired 1996; Senior Partner of Rogers & Wells (New York law
firm) from 1970 to 1996.
Roger D. Roenfeldt(3) Executive Vice President and Chief Operating Officer of
ReliaStar Life Insurance Company of New York since 1997;
Executive Vice President and Chief Operating Officer of
Lincoln Security Life Insurance Company from 1996 to 1997
until its merger into ReliaStar Life Insurance Company of
New York; President and Chief Executive Officer of The R.E.
Lee Group/US, Inc. from 1991 to 1996.

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56

PRINCIPAL OCCUPATION
DIRECTORS AND OFFICERS AND BUSINESS EXPERIENCE
---------------------- ------------------------------------------------------------

Robert C. Salipante(2) Chief Operating Officer, ReliaStar Life Insurance Company
since 2001; Chief Executive Officer of Ameribest Life
Insurance Company, Equitable Life Insurance Company of Iowa,
Golden American Life Insurance Company, Midwestern United
Life Insurance Company, Security Life of Denver Insurance
Company, Security-Connecticut Life Insurance Company,
Southland Life Insurance Company, United Life and Annuity
Insurance Company, and USG Annuity & Life Company since
2001; Director of Ameribest Life Insurance Company,
Equitable Life Insurance Company of Iowa, First Columbine
Life Insurance Company, Golden American Life Insurance
Company, Life Insurance Company of Georgia, Midwestern
United Life Insurance Company, Northern Life Insurance
Company, ReliaStar Life Insurance Company, Security Life of
Denver Insurance Company, Security-Connecticut Life
Insurance Company, Southland Life Insurance Company, USG
Annuity & Life Company and United Life and Annuity Insurance
since 2001; Chief Executive Officer, ING North America
Insurance Corporation since 2000; Director of Aetna
Insurance Company of America, Aetna Life Insurance and
Annuity Company, Aetna Retirement Holdings, Inc., and Aetna
Retirement Services, Inc., since 2000; Chairman of
Security-Connecticut Life Insurance Company since 2000;
President and Chief Operating Officer of ReliaStar Financial
Corp. since 1999; President and Chief Operating Officer of
ReliaStar Life Insurance Company from 1999 to 2001; Senior
Vice President of ReliaStar Financial Corp. and ReliaStar
Life Insurance Company from 1996 to 1999; Vice Chairman of
ReliaStar Life Insurance Company of New York since 1999;
President and Chief Executive Officer of ReliaStar Life
Insurance Company of New York from 1998 to 1999; Senior Vice
President of ReliaStar Financial Corp. from 1994 to 1996;
Senior Vice President and Chief Financial Officer of
ReliaStar Financial Corp. from 1992 to 1994; Director and
Officer of various subsidiaries of ReliaStar Financial Corp.
John G. Turner(2) Director and Vice Chairman, ING America Insurance Holdings,
Inc. since 2000; Chairman and Chief Executive Officer of
ReliaStar Financial Corp. and ReliaStar Life Insurance
Company since 1993; Chairman of ReliaStar United Services
Life Insurance Company from 1995 until its merger with
ReliaStar Life Insurance Company in 1998; Chairman of
ReliaStar Life Insurance Company of New York since 1995;
Chairman of Northern Life Insurance Company since 1992;
Director and Officer of various subsidiaries of ReliaStar
Financial Corp.
Charles B. Updike(1) Partner of Schoeman, Marsh & Updike (New York law firm)
since 1976.
Ross M. Weale(1) President of Waccabuc Enterprise, Inc. (New York management
consulting firm) since 1996; President and Chief Executive
Officer of Country Bank (financial institution) from 1986 to
1996.

- ---------------
(1) Director of ReliaStar Life Insurance Company of New York

(2) Director and Officer of ReliaStar Life Insurance Company of New York

(3) Officer of ReliaStar Life Insurance Company of New York

The Executive Committee of our Board of Directors consists of Directors Turner,
Salipante, Huneke, Updike, and Weale.

The Compliance Committee of our Board of Directors consists of Directors Weale,
Carb, Conley, Haynes, Perrotta and Updike.

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The following is a list of the current directors and executive officers of
the principal underwriter and their business addresses:

NAME AND PRINCIPAL
BUSINESS ADDRESS POSITION AND OFFICES
- ------------------ --------------------

Michael J. Dubes* Chairman, Executive Vice President and Director
Brian Nygaard Director
3424 Peachtree Road NE
Suite 1900
Atlanta, Georgia 30326
Gene Grayson* Vice President, National Sales and Marketing
Paula Cludray-Engelke Secretary
Daniel S. Kuntz* Assistant Vice President, Chief Financial Officer and
Treasurer
Seth Schwartz* Vice President and Compliance Officer
Kenneth Severud* Vice President and Chief Operating Officer
Loralee A. Renelt* Assistant Secretary
Allen Kidd Assistant Secretary
222 North Arch Road
Richmond, Virginia 23236

- ---------------
* 20 Washington Avenue South, Minneapolis, Minnesota 55401

STATE REGULATION

We are subject to the laws of the State of New York governing insurance
companies and to regulation and supervision by the Insurance Department of the
State of New York. We file an annual statement in a prescribed form with the
Insurance Department each year, and in each state we do business, covering our
operations for the preceding year and our financial condition as of the end of
that year. Our books and accounts are subject to review by the Insurance
Department and a full examination of our operations is conducted periodically
(usually every three years) by the National Association of Insurance
Commissioners. This regulation does not, however, involve supervision or
management of our investment practices or policies.

In addition, we are subject to regulation under the insurance laws of other
jurisdictions in which we operate.

LEGAL PROCEEDINGS

The Variable Account is not a party to any pending legal proceedings. The
Company is a defendant in various lawsuits in connection with the normal conduct
of its insurance operations. Some of the claims seek to be granted class action
status and many of the claims seek both compensatory and punitive damages. In
the opinion of management, the ultimate resolution of such litigation will not
have a material adverse impact to the financial position of the Company.

BONDING ARRANGEMENTS

The Company maintains an insurance company blanket bond providing
$25,000,000 coverage for our officers and employees and those of Washington
Square Securities, Inc., (WSSI), subject to a $500,000 deductible.

54
58

LEGAL MATTERS

Legal matters in connection with the Variable Account and the Policy
described in this Prospectus have been passed upon by Michael S. Fisher,
Esquire, Attorney for the Company.

EXPERTS

The financial statements of ReliaStar Life Insurance Company of New York
Variable Life Separate Account I as of December 31, 2000 and for the year then
ended and the statutory basis financial statements of ReliaStar Life Insurance
Company of New York at December 31, 2000 and for the year then ended, appearing
in this Prospectus have been audited by Ernst & Young LLP, independent auditors,
and the financial statements of ReliaStar Life Insurance Company of New York
Variable Life Separate Account I for each of the two years ended December 31,
1999 and 1998, and the statutory basis financial statements of ReliaStar Life
Insurance Company of New York at December 31, 1999 and for the year then ended
have been audited by Deloitte & Touche LLP, independent auditors, as set forth
in their respective reports thereon appearing elsewhere herein, and are included
in reliance upon such reports given on the authority of such firms as experts in
accounting and auditing.

Actuarial matters included in this Prospectus have been examined by Craig
A. Krogstad, F.S.A., M.A.A.A., as stated in the opinion filed as an exhibit to
the Registration Statement.

REGISTRATION STATEMENT CONTAINS FURTHER INFORMATION

A Registration Statement has been filed with the SEC under the Securities
Act of 1933 with respect to the Policies. This Prospectus does not contain all
information included in the Registration Statement, its amendments and exhibits.
For further information concerning the Variable Account, the Funds, the Policies
and us, please refer to the Registration Statement.

Statements in this Prospectus concerning provisions of the Policy and other
legal documents are summaries. Please refer to the documents as filed with the
SEC for a complete statement of the provisions of those documents.

Information may be obtained from the SEC's principal office in Washington,
D.C., for a fee it prescribes, or examined there without charge.

FINANCIAL STATEMENTS

The financial statements for the Variable Account reflect the operations of
the Variable Account as of and for the years ended December 31, 2000 and for
each of the three years in the period then ended. The financial statements are
audited. The periods covered are not necessarily indicative of the longer term
performance of the assets held in the Variable Account.

The statutory basis financial statements of ReliaStar Life Insurance
Company of New York which are included in this Prospectus should be
distinguished from the financial statements of the Variable Account and should
be considered only as bearing upon the ability of ReliaStar Life Insurance
Company of New York to meet its obligations under the Policies. They should not
be considered as bearing on the investment performance of the assets held in the
Variable Account. These statutory basis financial statements are as of December
31, 2000 and 1999, and for the years then ended. The periods covered are not
necessarily indicative of the longer term performance of the Company.

55
59

INDEPENDENT AUDITORS' REPORT

Board of Directors
ReliaStar Life Insurance Company of New York

We have audited the accompanying individual and combined statements of assets
and liabilities of ReliaStar Life Insurance Company of New York Variable Life
Separate Account I (the "Account") as of December 31, 2000 and the related
statements of operations and changes in policy owners' equity for the year then
ended. These financial statements are the responsibility of the management of
ReliaStar Life Insurance Company of New York. Our responsibility is to express
an opinion on these financial statements based on our audit. The statements of
operations and changes in policy owner's equity (including the sub-accounts
which comprise the Account) for the years ended December 31, 1999 and 1998, were
audited by other auditors whose report dated February 18, 2000, expressed an
unqualified opinion on those statements.

We have conducted our audit in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
December 31, 2000, by correspondence with the account custodians. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
sub-accounts constituting the ReliaStar Life Insurance Company of New York
Separate Account I as of December 31, 2000 and the results of their operations
and changes in their policy owners' equity for the year then ended in conformity
with accounting principles generally accepted in the United States.

/s/ Ernst & Young LLP

Minneapolis, Minnesota
February 16, 2001

56
60

INDEPENDENT AUDITORS' REPORT

Board of Directors

ReliaStar Life Insurance Company of New York

We have audited the accompanying statements of operations and changes in
policy owners' equity of ReliaStar Life Insurance Company of New York Variable
Life Separate Account I (including the sub-accounts that comprise the Account)
for the years ended December 31, 1999 and 1998. These financial statements are
the responsibility of the management of ReliaStar Life Insurance Company of New
York. Our responsibility is to express an opinion on these financial statements
based on our audits.

We conducted our audits in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly,
in all material respects, the results of the operations and changes in policy
owners' equity of the respective sub-accounts constituting the ReliaStar Life
Insurance Company of New York Variable Life Separate Account I for the years
ended December 31, 1999 and 1998, in conformity with accounting principles
generally accepted in the United States of America.

/s/ Deloitte & Touche LLP

Minneapolis, Minnesota

February 18, 2000

57
61

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
STATEMENTS OF ASSETS AND LIABILITIES
December 31, 2000
(In Thousands, Except Shares)

ASSETS:
Investments in mutual funds at market value:

SHARES COST MARKET VALUE
------- ------ ------------

THE ALGER AMERICAN FUND:
Alger American Growth Portfolio........................... 19,850 $1,138 $ 939
Alger American Leveraged AllCap Portfolio................. 612 28 24
Alger American MidCap Growth Portfolio.................... 6,684 210 205
Alger American Small Capitalization Portfolio............. 11,558 353 271
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund..................... 1,114 11 9
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND (VIP):
VIP Equity-Income Portfolio -- IC Shares.................. 19,912 495 508
VIP Growth Portfolio -- IC Shares......................... 8,669 424 378
VIP High Income Portfolio -- IC Shares.................... 6,280 68 51
VIP Money Market Portfolio -- IC Shares................... 522,157 522 522
FIDELITY'S VARIABLE INSURANCE PRODUCTS FUND II (VIP II):
VIP II Contrafund Portfolio -- IC Shares.................. 24,440 621 581
VIP II Index 500 Portfolio -- IC Shares................... 8,905 1,401 1,331
VIP II Investment Grade Bond Portfolio -- IC Shares....... 8,365 101 105
JANUS ASPEN SERIES:
Aggressive Growth Portfolio............................... 24,441 1,217 888
Growth Portfolio.......................................... 22,178 687 587
International Growth Portfolio............................ 6,086 212 189
Worldwide Growth Portfolio................................ 22,150 919 820
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
AMT Limited Maturity Bond Portfolio....................... 1,023 13 13
AMT Partners Portfolio.................................... 22,903 405 370
AMT Socially Responsive Portfolio......................... 12 -- --
PILGRIM VARIABLE PRODUCTS TRUST:
Pilgrim VP Growth Opportunities Portfolio................. 1,780 17 16
Pilgrim VP Growth + Value Portfolio....................... 22,232 654 509
Pilgrim VP High Yield Bond Portfolio...................... 1,356 6 5
Pilgrim VP International Value Portfolio.................. 7,848 108 96
Pilgrim VP MagnaCap Portfolio............................. 12 -- --
Pilgrim VP MidCap Opportunities Portfolio................. 805 8 7
Pilgrim VP Research Enhanced Index Portfolio.............. 935 4 4
Pilgrim VP SmallCap Opportunities Portfolio............... 20,314 561 543
OCC ACCUMULATION TRUST:
Equity Portfolio.......................................... 426 14 15
Global Equity Portfolio................................... 5,492 93 84
Managed Portfolio......................................... 811 33 35
Small Cap Portfolio....................................... 2,386 60 77
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund -- Class IA Shares...... 2,707 28 25
Putnam VT Growth and Income Fund -- Class IA Shares....... 12,853 340 332
Putnam VT New Opportunities Fund -- Class IA Shares....... 3,581 151 107
Putnam VT Voyager Fund -- Class IA Shares................. 19,342 991 944
-------
TOTAL ASSETS............................................ $10,590
=======
LIABILITIES AND POLICY OWNERS' EQUITY:
Due to ReliaStar Life Insurance Company of New York....... $ 1
Policy Owners' Equity..................................... 10,589
-------
Total Liabilities and Policy Owners' Equity........... $10,590
=======

The accompanying notes are an integral part of the financial statements.

58
62

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

ALGER AMERICAN
TOTAL ALL FUNDS GROWTH PORTFOLIO
--------------------------- ----------------------------------------
2000 1999 1998 2000 1999 1998
------- ------ ------ ----------- ----------- ----------

Net investment income (loss):
Reinvested dividend income..................... $ 133 $ 44 $ 6 $ -- $ -- $ --
Reinvested capital gains....................... 759 193 16 102 11 3
Administrative expenses........................ (57) (27) (7) (5) (1) --
------- ------ ------ ----------- ----------- ----------
Net investment income (loss) and capital
gains.................................... 835 210 15 97 10 3
------- ------ ------ ----------- ----------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions of
fund shares.................................. 229 240 (8) (1) 13 --
Net unrealized appreciation (depreciation) of
investments.................................. (2,397) 856 238 (258) 52 7
------- ------ ------ ----------- ----------- ----------
Net realized and unrealized gains (losses)... (2,168) 1,096 230 (259) 65 7
------- ------ ------ ----------- ----------- ----------
Additions (reductions) from operations....... (1,333) 1,306 245 (162) 75 10
------- ------ ------ ----------- ----------- ----------
Policy Owners' transactions:
Net premium payments........................... 6,285 3,350 2,298 753 264 45
Surrenders..................................... (154) (30) (1) -- (14) --
Transfers between funds and/or fixed acct...... -- 85 -- 19 103 2
Policy loans................................... (6) (1) -- -- -- --
Loan collateral interest crediting............. -- -- -- -- -- --
Death benefits................................. (32) -- -- (4) -- --
Death benefit guarantee charges................ (13) -- -- -- -- --
Cost of insurance charges...................... (854) (412) (144) (110) (26) (3)
Monthly Expense Charge......................... (70) (36) (12) (11) (3) (1)
------- ------ ------ ----------- ----------- ----------
Additions (reductions) for policy owners'
transactions............................. 5,156 2,956 2,141 647 324 43
------- ------ ------ ----------- ----------- ----------
Net additions (reductions) for the year.... 3,823 4,262 2,386 485 399 53
Policy Owners' Equity, beginning of the year..... 6,766 2,504 118 453 54 1
------- ------ ------ ----------- ----------- ----------
Policy Owners' Equity, end of the year........... $10,589 $6,766 $2,504 $ 938 $ 453 $ 54
======= ====== ====== =========== =========== ==========
Units Outstanding, beginning of the year......... 23,204.017 3,716.345 86.866
Units Outstanding, end of the year............... 56,425.408 23,204.017 3,716.345
Net Asset Value per Unit:........................ $ 16.632526 $ 19.516075 $14.592177

The accompanying notes are an integral part of the financial statements.

59
63
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

ALGER AMERICAN ALGER AMERICAN
LEVERAGE ALLCAP PORTFOLIO MIDCAP GROWTH PORTFOLIO
------------------------------ -----------------------------------------
2000 1999 1998 2000 1999 1998
---------- ------ ------ ----------- ----------- -----------

Net investment income (loss):
Reinvested dividend income.................. $ -- $ -- $ -- $ -- $ -- $ --
Reinvested capital gains.................... -- -- -- 14 4 1
Administrative expenses..................... -- -- -- (1) -- --
---------- ------ ------ ----------- ----------- -----------
Net investment income (loss) and capital
gains................................. -- -- -- 13 4 1
---------- ------ ------ ----------- ----------- -----------
Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares............................ -- -- -- 3 -- --
Net unrealized appreciation (depreciation)
of investments............................ (4) -- -- (15) 8 2
---------- ------ ------ ----------- ----------- -----------
Net realized and unrealized gains
(losses)................................ (4) -- -- (12) 8 2
---------- ------ ------ ----------- ----------- -----------
Additions (reductions) from operations.... (4) -- -- 1 12 3
---------- ------ ------ ----------- ----------- -----------
Policy Owners' transactions:
Net premium payments........................ 21 -- -- 112 28 20
Surrenders.................................. -- -- -- (2) -- --
Transfers between funds and/or fixed acct... 8 -- -- 52 (1) --
Policy loans................................ -- -- -- -- -- --
Loan collateral interest crediting.......... -- -- -- -- -- --
Death benefits.............................. -- -- -- -- -- --
Death benefit guarantee charges............. -- -- -- -- -- --
Cost of insurance charges................... (1) -- -- (17) (3) (1)
Monthly Expense Charge...................... -- -- -- (1) -- --
---------- ------ ------ ----------- ----------- -----------
Additions (reductions) for policy
owners' transactions.................. 28 -- -- 144 24 19
---------- ------ ------ ----------- ----------- -----------
Net additions (reductions) for the
year.................................. 24 -- -- 145 36 22
Policy Owners' Equity, beginning of the
year........................................ -- -- -- 60 24 2
---------- ------ ------ ----------- ----------- -----------
Policy Owners' Equity, end of the year........ $ 24 $ -- $ -- $ 205 $ 60 $ 24
========== ====== ====== =========== =========== ===========
Units Outstanding, beginning of the year...... -- -- -- 3,567.836 1,885.358 206.735
Units Outstanding, end of the year............ 3,143.356 -- -- 11,103.244 3,567.836 1,885.358
Net Asset Value per Unit:..................... $ 7.549606 $ -- $ -- $ 18.429460 $ 16.879516 $ 12.802277

The accompanying notes are an integral part of the financial statements.

60
64
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

ALGER AMERICAN AIM V.I.
SMALL CAPITALIZATION PORTFOLIO DENT DEMOGRAPHIC TRENDS FUND
------------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
----------- ---------- ---------- ---------- ---- ----

Net investment income (loss):
Reinvested dividend income................. $ -- $ -- $ -- $ -- $ -- $ --
Reinvested capital gains................... 54 6 2 -- -- --
Administrative expenses.................... (1) (1) -- -- -- --
----------- ---------- ---------- ---------- ---- ----
Net investment income (loss) and
capital gains........................ 53 5 2 -- -- --
----------- ---------- ---------- ---------- ---- ----
Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions
of fund shares........................... (21) 3 -- -- -- --
Net unrealized appreciation (depreciation)
of investments........................... (108) 22 4 (2) -- --
----------- ---------- ---------- ---------- ---- ----
Net realized and unrealized gains
(losses)............................... (129) 25 4 (2) -- --
----------- ---------- ---------- ---------- ---- ----
Additions (reductions) from operations... (76) 30 6 (2) -- --
----------- ---------- ---------- ---------- ---- ----
Policy Owners' transactions:
Net premium payments....................... 252 64 27 11 -- --
Surrenders................................. (1) (1) -- -- -- --
Transfers between funds and/or fixed
acct..................................... 10 (1) 1 -- -- --
Policy loans............................... -- -- -- -- -- --
Loan collateral interest crediting......... -- -- -- -- -- --
Death benefits............................. -- -- -- -- -- --
Death benefit guarantee charges............ -- -- -- -- -- --
Cost of insurance charges.................. (29) (9) (2) -- -- --
Monthly Expense Charge..................... (2) (1) -- -- -- --
----------- ---------- ---------- ---------- ---- ----
Additions (reductions) for policy
owners' transactions................. 230 52 26 11 -- --
----------- ---------- ---------- ---------- ---- ----
Net additions (reductions) for the
year................................. 154 82 32 9 -- --
Policy Owners' Equity, beginning of the
year....................................... 119 37 5 -- -- --
----------- ---------- ---------- ---------- ---- ----
Policy Owners' Equity, end of the year....... $ 273 $ 119 $ 37 $ 9 $ -- $ --
=========== ========== ========== ========== ==== ====
Units Outstanding, beginning of the year..... 7,093.241 2,983.060 467.792 -- -- --
Units Outstanding, end of the year........... 22,349.162 7,093.241 2,983.060 1,160.691 -- --
Net Asset Value per Unit:.................... $ 12.148813 $16.687171 $11.635433 $ 7.879171 $ -- $ --

The accompanying notes are an integral part of the financial statements.

61
65
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

FIDELITY'S VIP FIDELITY'S VIP
EQUITY-INCOME PORTFOLIO GROWTH PORTFOLIO
IC SHARES IC SHARES
--------------------------------------- -------------------------------------
2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ----------- ---------- ----------

Net investment income (loss):
Reinvested dividend income......... $ 7 $ 4 $ -- $ -- $ -- $ --
Reinvested capital gains........... 25 9 -- 32 12 --
Administrative expenses............ (3) (2) (1) (2) (1) (1)
----------- ----------- ----------- ----------- ---------- ----------
Net investment income (loss)
and capital gains............ 29 11 (1) 30 11 (1)
----------- ----------- ----------- ----------- ---------- ----------
Realized and unrealized gains
(losses):
Net realized gains (losses) on
redemptions of fund shares....... 2 16 -- 8 19 --
Net unrealized appreciation
(depreciation) of investments.... 3 (9) 19 (93) 33 14
----------- ----------- ----------- ----------- ---------- ----------
Net realized and unrealized gains
(losses)....................... 5 7 19 (85) 52 14
----------- ----------- ----------- ----------- ---------- ----------
Additions (reductions) from
operations..................... 34 18 18 (55) 63 13
----------- ----------- ----------- ----------- ---------- ----------
Policy Owners' transactions:
Net premium payments............... 107 201 244 247 195 99
Surrenders......................... (16) -- -- (27) (1) (1)
Transfers between funds and/or
fixed acct....................... 20 (41) -- (14) (66) 1
Policy loans....................... (1) (1) -- -- -- --
Loan collateral interest
crediting........................ -- -- -- -- -- --
Death benefits..................... (5) -- -- (10) -- --
Death benefit guarantee charges.... -- -- -- -- -- --
Cost of insurance charges.......... (30) (27) (10) (36) (18) (7)
Monthly Expense Charge............. (2) (2) (1) (5) (2) (1)
----------- ----------- ----------- ----------- ---------- ----------
Additions (reductions) for
policy owners'
transactions................. 73 130 233 155 108 91
----------- ----------- ----------- ----------- ---------- ----------
Net additions (reductions) for
the year..................... 107 148 251 100 171 104
Policy Owners' Equity, beginning of
the year........................... 399 251 -- 277 106 2
----------- ----------- ----------- ----------- ---------- ----------
Policy Owners' Equity, end of the
year............................... $ 506 $ 399 $ 251 $ 377 $ 277 $ 106
=========== =========== =========== =========== ========== ==========
Units Outstanding, beginning of the
year............................... 15,974.343 10,662.981 5.405 7,611.339 4,087.116 103.336
Units Outstanding, end of the year... 18,731.965 15,974.343 10,662.981 11,572.195 7,611.339 4,087.116
Net Asset Value per Unit:............ $ 27.127090 $ 25.020668 $ 23.531218 $ 32.699801 $36.733274 $26.727479

The accompanying notes are an integral part of the financial statements.

62
66
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

FIDELITY'S VIP FIDELITY'S VIP
HIGH INCOME PORTFOLIO MONEY MARKET PORTFOLIO
IC SHARES IC SHARES
-------------------------------------- --------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----

Net investment income (loss):
Reinvested dividend income........... $ 3 $ 2 $ -- $ 25 $ 17 $ 1
Reinvested capital gains............. -- -- -- -- -- --
Administrative expenses.............. -- -- -- (3) (2) --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 3 2 -- 22 15 1
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... (1) -- 2 -- -- --
Net unrealized appreciation
(depreciation) of investments...... (18) 1 -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (19) 1 2 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... (16) 3 2 22 15 1
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 24 31 131 672 389 77
Surrenders........................... (2) -- -- (3) (1) --
Transfers between funds and/or fixed
acct............................... -- 14 (126) (732) 194 (7)
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... -- -- -- (8) -- --
Cost of insurance charges............ (4) (3) (1) (55) (32) (5)
Monthly Expense Charge............... (1) (1) -- (3) (2) (1)
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 17 41 4 (129) 548 64
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year....................... 1 44 6 (107) 563 65
Policy Owners' Equity, beginning of the
year................................. 50 6 -- 629 66 1
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 51 $ 50 $ 6 $ 522 $ 629 $ 66
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 2,913.802 308.121 -- 46,238.678 5,112.620 75.083
Units Outstanding, end of the year..... 4,052.654 2,913.802 308.121 36,082.198 46,238.678 5,112.620
Net Asset Value per Unit:.............. $12.674923 $16.349223 $15.116470 $14.471548 $13.611549 $12.941412

The accompanying notes are an integral part of the financial statements.

63
67
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

FIDELITY'S VIP II FIDELITY'S VIP II
CONTRAFUND PORTFOLIO INDEX 500 PORTFOLIO
IC SHARES IC SHARES
-------------------------------------- --------------------------------------
2000 1999 1998 2000 1999 1998
---- ---- ---- ---- ---- ----

Net investment income (loss):
Reinvested dividend income........... $ 2 $ 1 $ -- $ 9 $ 3 $ --
Reinvested capital gains............. 67 8 1 4 2 --
Administrative expenses.............. (4) (2) (1) (7) (4) (1)
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 65 7 -- 6 1 (1)
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... 20 18 -- 60 16 1
Net unrealized appreciation
(depreciation) of investments...... (134) 57 37 (199) 91 38
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (114) 75 37 (139) 107 39
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... (49) 82 37 (133) 108 38
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 248 223 182 796 510 265
Surrenders........................... (4) (1) -- (6) (7) --
Transfers between funds and/or fixed
acct............................... (74) 20 1 (97) 46 2
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... (4) -- -- -- -- --
Death benefit guarantee charges...... -- -- -- (1) -- --
Cost of insurance charges............ (45) (29) (8) (101) (63) (17)
Monthly Expense Charge............... (3) (2) (1) (8) (5) (1)
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 118 211 174 583 481 249
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year....................... 69 293 211 450 589 287
Policy Owners' Equity, beginning of the
year................................. 513 220 9 880 291 4
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 582 $ 513 $ 220 $ 1,330 $ 880 $ 291
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 17,270.199 9,211.711 495.110 25,257.361 10,104.460 203.033
Units Outstanding, end of the year..... 20,913.659 17,270.199 9,211.711 42,098.708 25,257.361 10,104.460
Net Asset Value per Unit:.............. $27.741157 $29.708780 $23.909755 $31.624514 $34.868839 $28.934443

The accompanying notes are an integral part of the financial statements.

64
68
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

FIDELITY'S VIP II
INVESTMENT GRADE BOND PORTFOLIO JANUS ASPEN SERIES
IC SHARES AGGRESSIVE GROWTH PORTFOLIO
------------------------------------ ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ 5 $ 1 $ -- $ 38 $ 2 $ --
Reinvested capital gains............. -- -- -- 39 3 --
Administrative expenses.............. (1) -- -- (4) (1) --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 4 1 -- 73 4 --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... -- (1) -- 63 42 --
Net unrealized appreciation
(depreciation) of investments...... 3 -- 1 (460) 120 11
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 3 (1) 1 (397) 162 11
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 7 -- 1 (324) 166 11
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 59 42 19 633 145 51
Surrenders........................... -- -- -- (8) -- --
Transfers between funds and/or
fixed acct......................... (2) (6) -- 288 35 --
Policy loans......................... -- -- -- (3) -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... -- -- -- -- -- --
Cost of insurance charges............ (9) (4) (1) (77) (18) (2)
Monthly Expense Charge............... (1) -- -- (6) (2) --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 47 32 18 827 160 49
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year....................... 54 32 19 503 326 60
Policy Owners' Equity, beginning of
the year............................. 51 19 -- 386 60 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 105 $ 51 $ 19 $ 889 $ 386 $ 60
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 3,626.177 1,362.857 -- 11,631.594 4,022.517 2.178
Units Outstanding, end of the year..... 6,930.881 3,626.177 1,362.857 39,217.948 11,631.594 4,022.517
Net Asset Value per Unit:.............. $15.194977 $13.662210 $13.807112 $22.613916 $33.167484 $14.714669

The accompanying notes are an integral part of the financial statements.

65
69
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

JANUS ASPEN SERIES JANUS ASPEN SERIES
GROWTH PORTFOLIO INTERNATIONAL GROWTH PORTFOLIO
------------------------------------ ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ 11 $ -- $ 1 $ 3 $ -- $ --
Reinvested capital gains............. 26 1 -- 6 -- --
Administrative expenses.............. (3) (1) -- (1) -- --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 34 -- 1 8 -- --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... 8 24 -- 2 2 --
Net unrealized appreciation
(depreciation) of investments...... (138) 29 9 (50) 26 1
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (130) 53 9 (48) 28 1
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... (96) 53 10 (40) 28 1
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 426 157 65 108 26 13
Surrenders........................... (14) -- -- -- (1) --
Transfers between funds and/or
fixed acct......................... 89 (13) -- 65 6 --
Policy loans......................... (1) -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... (1) -- -- -- -- --
Cost of insurance charges............ (62) (18) (4) (12) (4) (2)
Monthly Expense Charge............... (4) (2) -- (1) (1) --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for
policy owners'
transactions................. 433 124 61 160 26 11
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year..................... 337 177 71 120 54 12
Policy Owners' Equity, beginning of
the year............................. 248 71 -- 70 16 4
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 585 $ 248 $ 71 $ 190 $ 70 $ 16
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 12,476.529 5,105.809 -- 3,462.662 1,430.417 427.927
Units Outstanding, end of the year..... 34,521.791 12,476.529 5,105.809 10,874.761 3,462.662 1,430.417
Net Asset Value per Unit:.............. $17.002489 $19.898078 $13.819668 $17.289077 $20.567965 $11.284244

The accompanying notes are an integral part of the financial statements.

66
70
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

NEUBERGER BERMAN
JANUS ASPEN SERIES ADVISERS MANAGEMENT TRUST
WORLDWIDE GROWTH PORTFOLIO LIMITED MATURITY BOND PORTFOLIO
----------------------------------------- --------------------------------------
2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income.......... $ 15 $ 1 $ 2 $ 1 $ 1 $ --
Reinvested capital gains............ 50 -- 1 -- -- --
Administrative expenses............. (5) (2) (1) -- (1) --
----------- ----------- ----------- ---------- ---------- ----------
Net investment income (loss)
and capital gains............. 60 (1) 2 1 -- --
----------- ----------- ----------- ---------- ---------- ----------
Realized and unrealized gains
(losses):
Net realized gains (losses) on
redemptions of fund shares........ 42 41 1 -- (1) --
Net unrealized appreciation
(depreciation)
of investments.................... (263) 150 14 -- -- --
----------- ----------- ----------- ---------- ---------- ----------
Net realized and unrealized
gains (losses)................ (221) 191 15 -- (1) --
----------- ----------- ----------- ---------- ---------- ----------
Additions (reductions) from
operations.................... (161) 190 17 1 (1) --
----------- ----------- ----------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................ 475 224 169 4 77 22
Surrenders.......................... (14) (1) -- -- -- --
Transfers between funds and/or
fixed acct........................ 75 (53) 3 (4) (72) --
Policy loans........................ -- -- -- -- -- --
Loan collateral interest
crediting......................... -- -- -- -- -- --
Death benefits...................... (6) -- -- -- -- --
Death benefit guarantee charges..... (1) -- -- -- -- --
Cost of insurance charges........... (67) (33) (15) (3) (7) (4)
Monthly Expense Charge.............. (5) (3) (1) -- -- --
----------- ----------- ----------- ---------- ---------- ----------
Additions (reductions) for
policy
owners' transactions.......... 457 134 156 (3) (2) 18
----------- ----------- ----------- ---------- ---------- ----------
Net additions (reductions)
for the year.................. 296 324 173 (2) (3) 18
Policy Owners' Equity, beginning of
the year............................ 521 197 24 16 19 1
----------- ----------- ----------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................ $ 817 $ 521 $ 197 $ 14 $ 16 $ 19
=========== =========== =========== ========== ========== ==========
Units Outstanding, beginning of the
year................................ 25,028.565 15,578.182 2,468.532 1,446.569 1,753.632 105.555
Units Outstanding, end of the year.... 46,571.859 25,028.565 15,578.182 1,163.146 1,446.569 1,753.632
Net Asset Value per Unit:............. $ 17.585970 $ 20.853866 $ 12.681124 $11.599511 $10.862584 $10.704404

The accompanying notes are an integral part of the financial statements.

67
71
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

NEUBERGER BERMAN NEUBERGER BERMAN
ADVISERS MANAGEMENT TRUST ADVISERS MANAGEMENT TRUST
PARTNERS PORTFOLIO SOCIALLY RESPONSIVE PORTFOLIO
----------------------------------------- ----------------------------------
2000 1999 1998 2000 1999 1998
----------- ----------- ----------- ---------- ---------- ------

Net investment income (loss):
Reinvested dividend income.............. $ 3 $ 3 $ -- $ -- $ -- $ --
Reinvested capital gains................ 54 5 1 -- -- --
Administrative expenses................. (2) (2) (1) -- -- --
----------- ----------- ----------- ---------- ---------- ------
Net investment income (loss)
and capital gains................. 55 6 -- -- -- --
----------- ----------- ----------- ---------- ---------- ------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares............ (1) 11 (1) -- -- --
Net unrealized appreciation
(depreciation)
of investments........................ (52) -- 17 -- -- --
----------- ----------- ----------- ---------- ---------- ------
Net realized and unrealized
gains (losses).................... (53) 11 16 -- -- --
----------- ----------- ----------- ---------- ---------- ------
Additions (reductions) from
operations........................ 2 17 16 -- -- --
----------- ----------- ----------- ---------- ---------- ------
Policy Owners' transactions:
Net premium payments.................... 77 145 258 -- -- --
Surrenders.............................. (6) (1) -- -- -- --
Transfers between funds and/or
fixed acct............................ (7) (74) 1 -- -- --
Policy loans............................ (1) -- -- -- -- --
Loan collateral interest crediting...... -- -- -- -- -- --
Death benefits.......................... (3) -- -- -- -- --
Death benefit guarantee charges......... -- -- -- -- -- --
Cost of insurance charges............... (19) (22) (10) -- -- --
Monthly Expense Charge.................. (2) (2) (1) -- -- --
----------- ----------- ----------- ---------- ---------- ------
Additions (reductions) for policy
owners' transactions.............. 39 46 248 -- -- --
----------- ----------- ----------- ---------- ---------- ------
Net additions (reductions)
for the year...................... 41 63 264 -- -- --
Policy Owners' Equity, beginning of
the year................................ 328 265 1 -- -- --
----------- ----------- ----------- ---------- ---------- ------
Policy Owners' Equity, end of the year.... $ 369 $ 328 $ 265 $ -- $ -- $ --
=========== =========== =========== ========== ========== ======
Units Outstanding, beginning of the
year.................................... 28,491.605 24,509.783 55.116 2.542 -- --
Units Outstanding, end of the year........ 31,831.268 28,491.605 24,509.783 12.225 2.542 --
Net Asset Value per Unit:................. $ 11.634457 $ 11.553436 $ 10.760407 $10.582035 $10.754901 $ --

The accompanying notes are an integral part of the financial statements.

68
72
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

PILGRIM VARIABLE PRODUCTS TRUST PILGRIM VARIABLE PRODUCTS TRUST
GROWTH OPPORTUNITIES PORTFOLIO GROWTH + VALUE PORTFOLIO
--------------------------------- -------------------------------------
2000 1999 1998 2000 1999 1998
----------- ----- ----- ----------- ---------- ----------

Net investment income (loss):
Reinvested dividend income.................... $ -- $-- $-- $ -- $ -- $ --
Reinvested capital gains...................... -- -- -- 68 37 --
Administrative expenses....................... -- -- -- (2) (1) --
---------- --- --- ----------- ---------- ----------
Net investment income (loss) and capital
gains................................... -- -- -- 66 36 --
---------- --- --- ----------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions of
fund shares................................. -- -- -- 26 17 --
Net unrealized appreciation (depreciation) of
investments................................. (1) -- -- (166) 14 7
---------- --- --- ----------- ---------- ----------
Net realized and unrealized gains
(losses).................................. (1) -- -- (140) 31 7
---------- --- --- ----------- ---------- ----------
Additions (reductions) from operations...... (1) -- -- (74) 67 7
---------- --- --- ----------- ---------- ----------
Policy Owners' transactions:
Net premium payments.......................... 16 -- -- 256 50 38
Surrenders.................................... -- -- -- (4) -- --
Transfers between funds and/or fixed acct..... 2 -- -- 153 54 (4)
Policy loans.................................. -- -- -- -- -- --
Loan collateral interest crediting............ -- -- -- -- -- --
Death benefits................................ -- -- -- -- -- --
Death benefit guarantee charges............... -- -- -- -- -- --
Cost of insurance charges..................... -- -- -- (31) (8) (5)
Monthly Expense Charge........................ -- -- -- (2) (1) --
---------- --- --- ----------- ---------- ----------
Additions (reductions) for policy owners'
transactions............................ 18 -- -- 372 95 29
---------- --- --- ----------- ---------- ----------
Net additions (reductions) for the year... 17 -- -- 298 162 36
Policy Owners' Equity, beginning of the year.... -- -- -- 209 47 11
---------- --- --- ----------- ---------- ----------
Policy Owners' Equity, end of the year.......... $ 17 $-- $-- $ 507 $ 209 $ 47
========== === === =========== ========== ==========
Units Outstanding, beginning of the year........ -- -- -- 8,872.444 3,924.431 1,076.181
Units Outstanding, end of the year.............. 1,767.695 -- -- 23,791.220 8,872.444 3,924.431
Net Asset Value per Unit:....................... $ 8.938223 $-- $-- $ 21.386715 $23.706151 $12.158465

The accompanying notes are an integral part of the financial statements.

69
73
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

PILGRIM VARIABLE PRODUCTS TRUST PILGRIM VARIABLE PRODUCTS TRUST
HIGH YIELD BOND PORTFOLIO INTERNATIONAL VALUE PORTFOLIO
----------------------------------- ------------------------------------
2000 1999 1998 2000 1999 1998
--------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income............ $ 1 $ 1 $ 1 $ 2 $ 1 $ 1
Reinvested capital gains.............. -- -- -- 22 7 2
Administrative expenses............... -- -- -- (1) -- --
--------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains................... 1 1 1 23 8 3
--------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares.......... -- (1) -- (3) 10 --
Net unrealized appreciation
(depreciation) of investments....... (1) 1 (1) (18) 5 1
--------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses).......................... (1) -- (1) (21) 15 1
--------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations........................ -- 1 -- 2 23 4
--------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments.................. 3 7 12 66 36 46
Surrenders............................ (3) -- -- -- -- --
Transfers between funds and/or fixed
acct................................ -- (9) (2) (37) (30) 1
Policy loans.......................... -- -- -- -- -- --
Loan collateral interest crediting.... -- -- -- -- -- --
Death benefits........................ -- -- -- -- -- --
Death benefit guarantee charges....... -- -- -- -- -- --
Cost of insurance charges............. (1) (1) -- (6) (8) (7)
Monthly Expense Charge................ -- -- -- -- -- --
--------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions............ (1) (3) 10 23 (2) 40
--------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for the
year............................ (1) (2) 10 25 21 44
Policy Owners' Equity, beginning of the
year.................................. 8 10 -- 73 52 8
--------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year.................................. $ 7 $ 8 $ 10 $ 98 $ 73 $ 52
========= ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year.................................. 586.534 858.616 13.072 4,017.898 4,281.249 823.667
Units Outstanding, end of the year...... 523.463 586.534 858.616 5,214.806 4,017.898 4,281.249
Net Asset Value per Unit:............... $8.951649 $10.130924 $10.468149 $18.352810 $17.787065 $11.844211

The accompanying notes are an integral part of the financial statements.

70
74
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

PILGRIM VARIABLE PRODUCTS TRUST PILGRIM VARIABLE PRODUCTS TRUST
MAGNACAP PORTFOLIO MIDCAP OPPORTUNITIES PORTFOLIO
--------------------------------- --------------------------------
2000 1999 1998 2000 1999 1998
----------- ---- ---- ---------- ---- ----

Net investment income (loss):
Reinvested dividend income..................... $ -- $-- $-- $ -- $-- $--
Reinvested capital gains....................... -- -- -- -- -- --
Administrative expenses........................ -- -- -- -- -- --
---------- --- --- --------- --- ---
Net investment income (loss) and capital
gains.................................... -- -- -- -- -- --
---------- --- --- --------- --- ---
Realized and unrealized gains (losses):
Net realized gains (losses) on redemptions of
fund shares.................................. -- -- -- -- -- --
Net unrealized appreciation (depreciation) of
investments.................................. -- -- -- (1) -- --
---------- --- --- --------- --- ---
Net realized and unrealized gains (losses)... -- -- -- (1) -- --
---------- --- --- --------- --- ---
Additions (reductions) from operations....... -- -- -- (1) -- --
---------- --- --- --------- --- ---
Policy Owners' transactions:
Net premium payments........................... -- -- -- 4 -- --
Surrenders..................................... -- -- -- -- -- --
Transfers between funds and/or fixed acct...... -- -- -- 4 -- --
Policy loans................................... -- -- -- -- -- --
Loan collateral interest crediting............. -- -- -- -- -- --
Death benefits................................. -- -- -- -- -- --
Death benefit guarantee charges................ -- -- -- -- -- --
Cost of insurance charges...................... -- -- -- -- -- --
Monthly Expense Charge......................... -- -- -- -- -- --
---------- --- --- --------- --- ---
Additions (reductions) for policy owners'
transactions............................. -- -- -- 8 -- --
---------- --- --- --------- --- ---
Net additions (reductions) for the year.... -- -- -- 7 -- --
Policy Owners' Equity, beginning of the year..... -- -- -- -- -- --
---------- --- --- --------- --- ---
Policy Owners' Equity, end of the year........... $ -- $-- $-- $ 7 $-- $--
========== === === ========= === ===
Units Outstanding, beginning of the year......... -- -- -- -- -- --
Units Outstanding, end of the year............... 11.442 -- -- 800.424 -- --
Net Asset Value per Unit:........................ $10.160952 $-- $-- $9.062225 $-- $--

The accompanying notes are an integral part of the financial statements.

71
75
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

PILGRIM VARIABLE PRODUCTS TRUST PILGRIM VARIABLE PRODUCTS TRUST
RESEARCH ENHANCED INDEX PORTFOLIO SMALLCAP OPPORTUNITIES PORTFOLIO
------------------------------------ -------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ----------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ -- $ -- $ -- $ -- $ -- $ --
Reinvested capital gains............. -- -- -- 39 24 1
Administrative expenses.............. -- -- -- (2) -- --
---------- ---------- ---------- ----------- ---------- ----------
Net investment income (loss) and
capital gains.................. -- -- -- 37 24 1
---------- ---------- ---------- ----------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... -- (1) -- 9 5 --
Net unrealized appreciation
(depreciation) of investments...... -- 1 (1) (54) 35 1
---------- ---------- ---------- ----------- ---------- ----------
Net realized and unrealized gains
(losses)......................... -- -- (1) (45) 40 1
---------- ---------- ---------- ----------- ---------- ----------
Additions (reductions) from
operations....................... -- -- (1) (8) 64 2
---------- ---------- ---------- ----------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 1 6 7 179 17 13
Surrenders........................... -- -- -- (4) -- --
Transfers between funds and/or fixed
acct............................... -- (7) -- 215 87 --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... -- -- -- -- -- --
Cost of insurance charges............ (1) (1) (1) (16) (3) (1)
Monthly Expense Charge............... -- -- -- (1) -- --
---------- ---------- ---------- ----------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... -- (2) 6 373 101 12
---------- ---------- ---------- ----------- ---------- ----------
Net additions (reductions) for
the year....................... -- (2) 5 365 165 14
Policy Owners' Equity, beginning of the
year................................. 4 6 1 180 15 1
---------- ---------- ---------- ----------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 4 $ 4 $ 6 $ 545 $ 180 $ 15
========== ========== ========== =========== ========== ==========
Units Outstanding, beginning of the
year................................. 278.069 443.781 29.810 3,929.860 804.528 49.892
Units Outstanding, end of the year..... 303.549 278.069 443.781 11,848.378 3,929.860 804.528
Net Asset Value per Unit:.............. $13.519441 $15.298625 $14.457253 $ 45.831683 $45.340005 $18.810805

The accompanying notes are an integral part of the financial statements.

72
76
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

OCC ACCUMULATION TRUST OCC ACCUMULATION TRUST
EQUITY PORTFOLIO GLOBAL EQUITY PORTFOLIO
------------------------------------ ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ -- $ -- $ -- $ 1 $ 1 $ --
Reinvested capital gains............. 1 -- -- 9 11 1
Administrative expenses.............. -- -- -- (1) (1) --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 1 -- -- 9 11 1
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... -- -- -- -- 4 --
Net unrealized appreciation
(depreciation) of investments...... 1 (1) 1 (6) (2) (1)
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... 1 (1) 1 (6) 2 (1)
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 2 (1) 1 3 13 --
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 8 6 1 16 41 29
Surrenders........................... -- -- -- (7) -- --
Transfers between funds and/or fixed
acct............................... (1) -- -- (1) (4) --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... -- -- -- -- -- --
Cost of insurance charges............ (1) (1) (1) (4) (4) (1)
Monthly Expense Charge............... -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for
policy owners'
transactions................. 6 5 -- 4 33 28
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year..................... 8 4 1 7 46 28
Policy Owners' Equity, beginning of the
year................................. 8 4 3 79 33 5
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 16 $ 8 $ 4 $ 86 $ 79 $ 33
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 667.165 304.805 265.451 5,663.042 3,071.262 473.059
Units Outstanding, end of the year..... 1,132.998 667.165 304.805 5,905.117 5,663.042 3,071.262
Net Asset Value per Unit:.............. $13.557536 $12.334780 $12.029100 $14.284659 $13.643299 $10.782965

The accompanying notes are an integral part of the financial statements.

73
77
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

OCC ACCUMULATION TRUST OCC ACCUMULATION TRUST
MANAGED PORTFOLIO SMALL CAP PORTFOLIO
------------------------------------ ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ -- $ 1 $ -- $ -- $ -- $ --
Reinvested capital gains............. 2 2 1 -- -- --
Administrative expenses.............. -- -- -- -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 2 3 1 -- -- --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... (2) 1 1 1 (4) --
Net unrealized appreciation
(depreciation) of investments...... 2 (1) 1 18 1 (2)
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... -- -- 2 19 (3) (2)
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 2 3 3 19 (3) (2)
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 19 32 38 35 43 42
Surrenders........................... (2) -- -- -- -- --
Transfers between funds and/or fixed
acct............................... (11) (45) -- (5) (47) --
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... -- -- -- -- -- --
Cost of insurance charges............ (3) (5) (6) (4) (6) (5)
Monthly Expense Charge............... -- (1) (1) (1) -- --
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for
policy owners'
transactions................. 3 (19) 31 25 (10) 37
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year..................... 5 (16) 34 44 (13) 35
Policy Owners' Equity, beginning of the
year................................. 30 46 12 33 46 11
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 35 $ 30 $ 46 $ 77 $ 33 $ 46
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 2,533.542 4,201.605 1,233.680 3,565.027 4,950.484 4,950.484
Units Outstanding, end of the year..... 2,787.809 2,533.542 4,201.605 5,827.809 3,565.027 4,950.484
Net Asset Value per Unit:.............. $12.559713 $11.444770 $10.900163 $13.201282 $ 9.156366 $ 9.327299

The accompanying notes are an integral part of the financial statements.

74
78
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

PUTNAM VT PUTNAM VT
DIVERSIFIED INCOME FUND GROWTH AND INCOME FUND
CLASS IA SHARES CLASS IA SHARES
------------------------------------ ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ 2 $ 2 $ -- $ 5 $ 3 $ --
Reinvested capital gains............. -- -- -- 24 14 1
Administrative expenses.............. -- -- -- (2) (2) (1)
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 2 2 -- 27 15 --
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... -- (1) -- (4) -- (1)
Net unrealized appreciation
(depreciation) of investments...... (1) (1) (1) -- (18) 10
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (1) (2) (1) (4) (18) 9
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... 1 -- (1) 23 (3) 9
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. -- 9 25 88 141 104
Surrenders........................... -- -- -- (11) (1) --
Transfers between funds and/or fixed
acct............................... (2) (2) -- (15) (8) 52
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... -- -- -- -- -- --
Cost of insurance charges............ (1) (2) (2) (18) (19) (9)
Monthly Expense Charge............... -- -- -- (2) (2) (1)
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... (3) 5 23 42 111 146
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year....................... (2) 5 22 65 108 155
Policy Owners' Equity, beginning of the
year................................. 27 22 -- 266 158 3
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 25 $ 27 $ 22 $ 331 $ 266 $ 158
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 2,129.016 1,802.260 16.242 11,011.914 6,624.776 161.028
Units Outstanding, end of the year..... 1,855.306 2,129.016 1,802.260 12,653.703 11,011.914 6,624.776
Net Asset Value per Unit:.............. $13.351259 $13.339586 $13.108403 $26.261615 $24.291674 $23.912286

The accompanying notes are an integral part of the financial statements.

75
79
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK VARIABLE LIFE
SEPARATE ACCOUNT I
STATEMENTS OF OPERATIONS AND CHANGES IN POLICY OWNERS' EQUITY, continued
For the years ended December 31, 2000, 1999 and 1998
(In Thousands)

PUTNAM VT PUTNAM VT
NEW OPPORTUNITIES FUND VOYAGER FUND
CLASS IA SHARES CLASS IA SHARES
------------------------------------ ------------------------------------
2000 1999 1998 2000 1999 1998
---------- ---------- ---------- ---------- ---------- ----------

Net investment income (loss):
Reinvested dividend income........... $ -- $ -- $ -- $ -- $ -- $ --
Reinvested capital gains............. 7 -- -- 114 37 1
Administrative expenses.............. (1) -- -- (6) (3) --
---------- ---------- ---------- ---------- ---------- ----------
Net investment income (loss) and
capital gains.................. 6 -- -- 108 34 1
---------- ---------- ---------- ---------- ---------- ----------
Realized and unrealized gains (losses):
Net realized gains (losses) on
redemptions of fund shares......... (11) -- -- 29 7 (11)
Net unrealized appreciation
(depreciation) of investments (47) 3 -- (335) 239 49
---------- ---------- ---------- ---------- ---------- ----------
Net realized and unrealized gains
(losses)......................... (58) 3 -- (306) 246 38
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) from
operations....................... (52) 3 -- (198) 280 39
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' transactions:
Net premium payments................. 110 14 -- 459 227 256
Surrenders........................... (1) -- -- (19) (1) --
Transfers between funds and/or fixed
acct............................... 52 1 -- (50) 4 75
Policy loans......................... -- -- -- -- -- --
Loan collateral interest crediting... -- -- -- -- -- --
Death benefits....................... -- -- -- -- -- --
Death benefit guarantee charges...... (1) -- -- (1) -- --
Cost of insurance charges............ (17) (3) -- (74) (35) (14)
Monthly Expense Charge............... (1) -- -- (8) (4) (2)
---------- ---------- ---------- ---------- ---------- ----------
Additions (reductions) for policy
owners' transactions........... 142 12 -- 307 191 315
---------- ---------- ---------- ---------- ---------- ----------
Net additions (reductions) for
the year....................... 90 15 -- 109 471 354
Policy Owners' Equity, beginning of the
year................................. 15 -- -- 834 363 9
---------- ---------- ---------- ---------- ---------- ----------
Policy Owners' Equity, end of the
year................................. $ 105 $ 15 $ -- $ 943 $ 834 $ 363
========== ========== ========== ========== ========== ==========
Units Outstanding, beginning of the
year................................. 414.168 -- -- 20,705.425 14,239.896 431.004
Units Outstanding, end of the year..... 3,756.593 414.168 -- 28,059.073 20,705.425 14,239.896
Net Asset Value per Unit:.............. $28.492604 $38.550963 $23.912286 $33.652215 $40.259562 $25.445248

The accompanying notes are an integral part of the financial statements.

76
80

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS

1. ORGANIZATION:
ReliaStar Life Insurance Company of New York Variable Life Separate Account I
("Separate Account I") was established by ReliaStar Life Insurance Company of
New York ("ReliaStar Life of New York"), previously ReliaStar Bankers Security
Life Insurance Society, in 1986 under the New York insurance laws. ReliaStar
Life of New York is an indirectly wholly-owned subsidiary of ReliaStar
Financial, Corp. On September 1, 2000, ReliaStar Financial, Corp. was acquired
by ING America Insurance Holdings, Inc., a subsidiary of ING Groep N.V. Separate
Account I operates as a unit investment trust under the Investment Company Act
of 1940 and is used to fund certain benefits for variable life insurance
policies issued by ReliaStar Life of New York. The assets of Separate Account I
and its sub-accounts are the property of ReliaStar Life of New York. The portion
of Separate Account I assets applicable to the variable life policies will not
be charged with liabilities arising out of any other business ReliaStar Life of
New York may conduct. The net assets maintained in the sub-accounts provide the
basis for the periodic determination of the amount of increased or decreased
benefits under the policies. The net assets may not be less than the amount
required under the state insurance law to provide for death benefits (without
regard to the minimum death benefit guarantee) and other policy benefits.
Additional assets are held in ReliaStar Life of New York's general account to
cover the contingency that the guaranteed minimum death benefit might exceed the
death benefit which would have been payable in the absence of such guarantee.

Separate Account I consists of Select*Life NY and Variable Estate Design
products. Payments received under the policies are allocated to sub-accounts of
the Separate Account I, each of which invested in one of the following funds
during the year:

THE ALGER AMERICAN FUND FIDELITY'S VIP FIDELITY'S VIP II
----------------------- -------------- -----------------

Growth Portfolio VIP Equity-Income Portfolio -- IC VIP II Contrafund Portfolio -- IC Shares
Shares
Leveraged AllCap Portfolio VIP Growth Portfolio -- IC Shares VIP II Index 500 Portfolio -- IC Shares
MidCap Growth Portfolio VIP High Income Portfolio -- IC Shares VIP II Investment Grade Bond Portfolio -- IC
Shares
Small Capitalization Portfolio VIP Money Market Portfolio -- IC
Shares

JANUS ASPEN SERIES NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST OCC ACCUMULATION TRUST
- ------------------ ------------------------------------------ ----------------------

Aggressive Growth Portfolio AMT Limited Maturity Bond Portfolio Equity Portfolio
Growth Portfolio AMT Partners Portfolio Global Equity Portfolio
International Growth
Portfolio AMT Socially Responsive Portfolio Managed Portfolio
Worldwide Growth Portfolio Small Cap Portfolio

PILGRIM VARIABLE PRODUCTS TRUST PUTNAM VARIABLE TRUST
------------------------------- ---------------------

VP Growth Opportunities Portfolio Putnam VT Diversified Income Fund -- Class IA Shares
VP Growth + Value Portfolio Putnam VT Growth and Income Fund -- Class IA Shares
VP High Yield Bond Portfolio Putnam VT New Opportunities Fund -- Class IA Shares
VP International Value Portfolio Putnam VT Voyager Fund -- Class IA Shares
VP MagnaCap Portfolio
VP MidCap Opportunities Portfolio AIM VARIABLE INSURANCE FUNDS
VP Research Enhanced Index Portfolio AIM V.I. Dent Demographic Trends Fund
VP SmallCap Opportunities Portfolio

Fred Alger Management, Inc. is the investment adviser for the four portfolios of
The Alger American Fund and is paid fees for its services by The Alger American
Fund Portfolios. Fidelity Management & Research Company is the investment
adviser for Fidelity's Variable Insurance Products Fund (VIP) and Variable
Insurance Products Fund II (VIP II) and is paid for its services by the VIP and
VIP II Portfolios. Janus Capital Corporation is the investment adviser for the
four portfolios of Janus Aspen Series and is paid fees for its services by the
Janus Aspen Series Portfolios. Neuberger Berman Management Inc. is the
investment manager for the three portfolios of the Neuberger Berman Advisers
Management Trust and is paid fees for its services by the Neuberger Berman
Advisers Management Trust Portfolios. ING Pilgrim Advisors, Inc., an

77
81

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS, CONTINUED

1. ORGANIZATION: -- (Continued)
affiliate of ReliaStar Life Insurance Company of New York, is the investment
adviser for the eight Pilgrim Variable Products Trust Portfolios and is paid
fees for its services by the Portfolios. OpCap Advisors is the investment
adviser for the four portfolios of the OCC Accumulation Trust and is paid fees
for its services by the OCC Accumulation Trust Funds. Putnam Investment
Management, Inc., is the investment advisor for Putnam Variable Trust and is
paid fees for its services by Putnam Variable Trust. Putnam Investment
Management, Inc., is the investment adviser for Putnam Variable Trust and is
paid fees for its services by Putnam Variable Trust. AIM Advisors, Inc. is the
investment adviser for the AIM V.I. Dent Demographic Trends Fund and is paid
fees for its services by the fund. The related funds' prospectuses contain
further information.

Fidelity VIP II Contrafund Portfolio is a registered trademark to FMMR
Corporation.

On July 29, 1998, Northstar Variable Trust Portfolio changed its name to
Northstar Galaxy Trust Portfolio (GT). Also on July 29, 1998, the Northstar
Variable Trust Growth Portfolio changed its name to Northstar Galaxy Trust
Growth + Value Portfolio.

On November 9, 1998, Northstar Galaxy Trust Income and Growth Portfolio changed
its name to Northstar Galaxy Trust Emerging Growth Portfolio.

On April 30, 1999, sub-accounts investing in Neuberger Berman Advisers
Management Trust Socially Responsive Portfolio and Putnam VT New Opportunities
Fund were made available to purchasers of ReliaStar Life of New York's Separate
Account I contracts. Also on April 30, 1999, Northstar Galaxy Trust Multi-Sector
Bond Portfolio changed its name to Northstar Galaxy Trust Research Enhanced
Index Portfolio and sub-accounts investing in the Putnam VT Diversified Income
Fund were closed to new premium and transfers.

On November 1, 1999, Northstar Investment Management Corporation changed its
name to Pilgrim Advisors, Inc. Substantially the same personnel are performing
the investment advisory services on behalf of Pilgrim Advisors, Inc.

On April 28, 2000, Pilgrim Advisors, Inc. merged with Pilgrim Investments, Inc.

On May 1, 2000, Northstar Galaxy Trust Portfolio changed its name to Pilgrim
Variable Products Trust Portfolio (VP). Also on May 1, 2000, the Northstar
Galaxy Trust Emerging Growth Portfolio and the Northstar Galaxy Trust Growth and
Value Portfolio changed their names to Pilgrim VP SmallCap Opportunities
Portfolio and Pilgrim VP Growth + Value Portfolio, respectively. In addition,
sub-accounts investing in Pilgrim VP MagnaCap Portfolio, Pilgrim VP Growth
Opportunities Portfolio, Pilgrim VP MidCap Opportunities Portfolio, AIM V.I.
Dent Demographic Trends Fund and Alger American Leveraged AllCap Portfolio were
made available to purchasers of products held in Separate Account I.

2. SIGNIFICANT ACCOUNTING POLICIES:
The following is a summary of the significant accounting policies of the
Account:

USE OF ESTIMATES: The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosures of contingent assets and liabilities at
the date of the financial statements and the reported amounts of increase and
decrease in net assets from operations during the period. Actual results could
differ from those estimates.

INVESTMENTS: The market value of investments in the sub-accounts is based on the
closing net asset values of the fund shares held at the end of the year.
Investment transactions are accounted for on the trade date (date the order to
purchase or redeem is executed) and dividend income and capital gain
distributions are recorded

78
82

RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS, CONTINUED

2. SIGNIFICANT ACCOUNTING POLICIES: -- (Continued)
on the ex-dividend date. Net realized gains and losses on redemptions of shares
of the funds are determined on the basis of specific identification of fund
share costs.

FEDERAL INCOME TAXES: The operations of the Separate Account I are included in
the federal income tax return of ReliaStar Life of New York, which is taxed as a
life insurance company under the provisions of the Internal Revenue Code (IRC).
Under the current provisions of the IRC, ReliaStar Life of New York does not
expect to incur federal income taxes on the earnings of the Separate Account I
to the extent the earnings are credited under the contracts. Based on this, no
charge is being made currently to the Account for federal income taxes.
ReliaStar Life of New York will review periodically the status of this policy in
the event of changes in the tax law. A charge may be made in future years for
any federal income taxes that would be attributable to the contracts.

3. POLICY CHARGES:
Certain charges are made by ReliaStar Life of New York to policy owners'
Variable Accumulation Values in Separate Account I in accordance with the terms
of the policies. These charges are set forth in the policies and may include:
cost of insurance charges; a monthly expense charge; death benefit guarantee
charge; optional insurance benefit charges; surrender charges net of any sales
charge refunds.

79
83
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
NOTES TO FINANCIAL STATEMENTS, CONTINUED

4. INVESTMENTS:
For the year ended December 31, 2000, investment activity in the funds was as
follows (in thousands):

COST OF PROCEEDS
PURCHASES FROM SALES
--------- ----------

INVESTING FUND
- ------------------------------------------------------------
THE ALGER AMERICAN FUND:
Alger American Growth Portfolio........................... $ 868 $ 123
Alger American Leveraged AllCap Portfolio................. 32 4
Alger American MidCap Growth Portfolio.................... 175 18
Alger American Small Capitalization Portfolio............. 337 55
AIM VARIABLE INSURANCE FUNDS:
AIM V.I. Dent Demographic Trends Fund..................... 11 --
FIDELITY'S VIP:
VIP Equity-Income Portfolio -- IC Shares.................. 151 48
VIP Growth Portfolio -- IC Shares......................... 268 84
VIP High Income Portfolio -- IC Shares.................... 28 6
VIP Money Market Portfolio -- IC Shares................... 782 889
FIDELITY'S VIP II:
VIP II Contrafund Portfolio -- IC Shares.................. 309 127
VIP II Index 500 Portfolio -- IC Shares................... 876 287
VIP II Investment Grade Bond Portfolio -- IC Shares....... 64 12
JANUS ASPEN SERIES:
Aggressive Growth Portfolio............................... 1,104 204
Growth Portfolio.......................................... 521 53
International Growth Portfolio............................ 177 10
Worldwide Growth Portfolio................................ 655 136
NEUBERGER BERMAN ADVISERS MANAGEMENT TRUST:
AMT Limited Maturity Bond Portfolio....................... 8 11
AMT Partners Portfolio.................................... 127 33
AMT Socially Responsive Portfolio......................... -- --
PILGRIM VARIABLE PRODUCTS TRUST:
Pilgrim VP Growth Opportunities Portfolio................. 19 2
Pilgrim VP Growth + Value Portfolio....................... 510 72
Pilgrim VP High Yield Bond Portfolio...................... 4 4
Pilgrim VP International Value Portfolio.................. 96 50
Pilgrim VP MagnaCap Portfolio............................. -- --
Pilgrim VP MidCap Opportunities Portfolio................. 8 --
Pilgrim VP Research Enhanced Index Portfolio.............. 1 1
Pilgrim VP SmallCap Opportunities Portfolio............... 427 18
OCC ACCUMULATION TRUST:
Equity Portfolio 10 4
Global Equity Portfolio................................... 26 13
Managed Portfolio......................................... 20 14
Small Cap Portfolio....................................... 37 12
PUTNAM VARIABLE TRUST:
Putnam VT Diversified Income Fund -- Class IA Shares...... 2 4
Putnam VT Growth and Income Fund -- Class IA Shares....... 127 59
Putnam VT New Opportunities Fund -- Class IA Shares....... 195 46
Putnam VT Voyager Fund -- Class IA Shares................. 530 113
------ ------
Total..................................................... $8,505 $2,512
====== ======

80
84

INDEPENDENT AUDITORS' REPORT

Board of Directors and Shareholder
ReliaStar Life Insurance Company of New York
Woodbury, New York

We have audited the accompanying statutory basis statement of admitted assets,
liabilities, surplus and other funds of ReliaStar Life Insurance Company of New
York (the Company) as of December 31, 2000, and the related statutory basis
statements of operations, changes in capital and surplus, and cash flows for the
year then ended. These statutory basis financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these statutory basis financial statements based on our audit. The
statutory basis financial statements of the Company as of December 31, 1999, and
the year then ended, were audited by other auditors whose report dated May 12,
2000 expressed an adverse opinion as to their conformity with accounting
principles generally accepted in the United States, because the financial
statements were presented in accordance with statutory accounting practices
prescribed or permitted by the Insurance Department of the State of New York,
and an unqualified opinion as to their conformity with such statutory accounting
practices.

We conducted our audit in accordance with auditing standards generally accepted
in the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the statutory basis financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the statutory
basis financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall statutory basis financial statement presentation. We
believe our audit provides a reasonable basis for our opinion.

As described in Note 1 to the statutory basis financial statements, the Company
presents its statutory basis financial statements in conformity with accounting
practices prescribed or permitted by the Insurance Department of the State of
New York, which practices differ from accounting principles generally accepted
in the United States. The variances between such practices and accounting
principles generally accepted in the United States also are described in Note 1.
The effects on the financial statements of the variances are not reasonably
determined but are presumed to be material.

In our opinion, because of the effects of the matter described in the preceding
paragraph, the statutory basis financial statements referred to above do not
present fairly, in conformity with accounting principles generally accepted in
the United States, the financial position of the Company as of December 31,
2000, or the results of its operations, or its cash flows for the year then
ended.

However, in our opinion, the 2000 statutory basis financial statements referred
to above present fairly, in all material respects, the financial position of the
Company as of December 31, 2000, and the results of its operations, and its cash
flows for the year then ended, in conformity with accounting practices
prescribed or permitted by the Insurance Department of the State of New York.

/s/ Ernst & Young LLP

Minneapolis, Minnesota
March 21, 2001

81
85

INDEPENDENT AUDITORS' REPORT

Board of Directors and Shareholder
ReliaStar Life Insurance Company of New York
Woodbury, New York

We have audited the accompanying statutory basis statement of admitted assets,
liabilities, and surplus and other funds of ReliaStar Life Insurance Company of
New York (the Company) as of December 31, 1999, and the related statutory basis
statements of operations, changes in capital and surplus, and cash flows for the
years then ended. These statutory basis financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these statutory basis financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the statutory
basis financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the statutory basis financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall statutory basis financial statement presentation. We
believe our audit provides a reasonable basis for our opinion.

As more fully described in Note 1 to the financial statements, the Company has
prepared these financial statements using accounting practices prescribed or
permitted by the Insurance Department of the State of New York, which practices
differ from accounting principles generally accepted in the United States of
America (generally accepted accounting principles). The effects on the financial
statements of the variances between the statutory basis of accounting and
generally accepted accounting principles are also described in Note 1.

In our opinion, because of the effects of the matters discussed in the preceding
paragraph, the financial statements referred to above do not present fairly, in
conformity with generally accepted accounting principles, the financial position
of the Company as of December 31, 1999, or the results of its operations or its
cash flows for the year then ended.

In our opinion, the statutory basis financial statements referred to above
present fairly, in all material respects, the admitted assets, liabilities, and
surplus and other funds of the Company as of December 31, 1999 and the results
of its operations, changes in capital and surplus, and its cash flows for the
year then ended, on the basis of accounting described in Note 1.

/s/ Deloitte & Touche LLP

Minneapolis, Minnesota
May 12, 2000

82
86

STATUTORY BASIS STATEMENTS OF ADMITTED ASSETS, LIABILITIES,
SURPLUS AND OTHER FUNDS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

DECEMBER 31 (IN MILLIONS) 2000 1999
- ------------------------------------------------------------------------------------

ASSETS
Bonds (Market: 2000, $1,458.9; 1999, $1,472.2) $1,472.2 $1,500.8
Stocks (Cost: 2000, $5.7; 1999, $6.8) 5.0 6.4
Mortgage Loans on Real Estate 248.3 320.0
Real Estate .6 1.1
Policy Loans 84.9 84.3
Cash on Hand and on Deposit 9.3 12.0
Short-Term Investments 13.0 9.0
Other Invested Assets 7.5 6.0
- ------------------------------------------------------------------------------------
TOTAL CASH AND INVESTED ASSETS 1,840.8 1,939.6
Reinsurance Recoverable 2.7 5.4
Life Insurance Premiums and Annuity Considerations Deferred
and Uncollected 20.8 17.9
Investment Income Due and Accrued 26.4 26.8
Other Assets (1.2) .8
From Separate Account Statement 609.7 687.5
- ------------------------------------------------------------------------------------
TOTAL ADMITTED ASSETS $2,499.2 $2,678.0
- ------------------------------------------------------------------------------------
LIABILITIES, SURPLUS AND OTHER FUNDS
Aggregate Reserves for Policies and Contracts $1,491.0 $1,609.0
Accumulations and Deposit Fund Liabilities 47.1 53.3
Policy and Contract Claims 19.6 13.4
Policyholders' Dividends .5 .5
Other Policy and Contract Liabilities 7.1 10.8
Commissions Payable .9 2.2
General Expenses Due or Accrued 17.1 8.2
Taxes, Licenses, and Fees Due or Accrued, Excluding Federal
Income Taxes 2.8 2.7
Federal Income Taxes Due or Accrued 4.2 5.6
Unearned Investment Income 2.9 2.9
Asset Valuation Reserve 14.1 18.4
Other Liabilities 64.1 46.6
From Separate Account Statement 605.7 682.6
- ------------------------------------------------------------------------------------
TOTAL LIABILITIES 2,277.1 2,456.2
- ------------------------------------------------------------------------------------
SURPLUS AND OTHER FUNDS
Common Capital Stock 2.8 2.8
Gross Paid In and Contributed Surplus 111.8 111.8
Group Life Contingency Reserve 4.8 6.1
Unassigned Surplus 102.7 101.1
- ------------------------------------------------------------------------------------
TOTAL SURPLUS AND OTHER FUNDS 222.1 221.8
- ------------------------------------------------------------------------------------
TOTAL LIABILITIES, SURPLUS AND OTHER FUNDS $2,499.2 $2,678.0
- ------------------------------------------------------------------------------------

The accompanying notes are an integral part of the statutory basis financial
statements.

83
87

STATUTORY BASIS STATEMENTS OF OPERATIONS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
- --------------------------------------------------------------------------------

REVENUES
Premiums and Annuity Considerations $190.4 $199.0
Deposit-Type Funds 71.5 127.7
Considerations for Supplementary Contracts and Dividend
Accumulations 54.6 61.3
Net Investment Income 142.1 146.9
Separate Account Fee Revenue 5.6 5.4
Other Income 6.2 9.3
- --------------------------------------------------------------------------------
TOTAL REVENUES 470.4 549.6
- --------------------------------------------------------------------------------
BENEFITS AND EXPENSES
Death Benefits 74.7 65.8
Annuity Benefits 21.4 21.0
Surrender Benefits and Other Fund Withdrawals 334.4 271.7
Payments on Supplementary Contracts and of Dividend
Accumulations 62.1 62.3
Change in Reserve for Policies and Contracts (118.0) (31.1)
Change in Liability for Accumulations and Deposit Funds (6.2) .8
Other 2.6 4.1
- --------------------------------------------------------------------------------
Total Benefits 371.0 394.6
Commissions 36.9 31.3
General Insurance Expenses 54.3 37.3
Insurance Taxes, Licenses and Fees, Excluding Federal Income
Taxes 5.5 4.8
Other 7.4 3.4
Net Transfers to Separate Accounts (36.8) 27.7
- --------------------------------------------------------------------------------
TOTAL BENEFITS AND EXPENSES 438.3 499.1
- --------------------------------------------------------------------------------
Net Gain from Operations before Dividends to Policyholders
and Federal Income Taxes 32.1 50.5
Dividends to Policyholders .5 .5
- --------------------------------------------------------------------------------
Net Gain from Operations before Federal Income Taxes 31.6 50.0
Federal Income Taxes (Excluding Taxes on Capital Gains and
Losses) 13.1 17.2
- --------------------------------------------------------------------------------
Net Gain from Operations before Realized Capital Gains and
Losses 18.5 32.8
Net Realized Capital Losses, Net of Tax (12.4) (1.9)
- --------------------------------------------------------------------------------
NET INCOME $ 6.1 $ 30.9
- --------------------------------------------------------------------------------

The accompanying notes are an integral part of the statutory basis financial
statements.

84
88

STATUTORY BASIS STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
- --------------------------------------------------------------------------------

CAPITAL AND SURPLUS, BEGINNING OF YEAR $221.8 $202.4
Net Income 6.1 30.9
Dividends to Parent (12.0) (8.0)
Change in Net Unrealized Capital Gains and Losses 2.2 (4.9)
Change in Non-Admitted Assets and Related Items 4.6 (1.4)
Change in Liability for Reinsurance in Unauthorized
Companies (4.9) (.5)
Change in Asset Valuation Reserve 4.3 3.3
- --------------------------------------------------------------------------------
CAPITAL AND SURPLUS, END OF YEAR $222.1 $221.8
- --------------------------------------------------------------------------------

The accompanying notes are an integral part of the statutory basis financial
statements.

85
89

STATUTORY BASIS STATEMENTS OF CASH FLOWS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
- --------------------------------------------------------------------------------

CASH FROM OPERATIONS
Premiums and Annuity Considerations $195.9 $193.1
Deposit-Type Funds 71.5 127.7
Considerations for Supplementary Contracts and Dividend
Accumulations 54.5 61.3
Commissions and Expense Allowances on Reinsurance Ceded 6.2 5.3
Net Investment Income 141.7 146.5
Fees From Separate Accounts 5.9 5.1
Other Income 2.8 .4
Life and Accident and Health Claims (67.5) (71.3)
Surrender Benefits and Other Fund Withdrawals (334.4) (271.7)
Other Benefits to Policyholders (86.5) (83.5)
Commissions, Other Expenses and Taxes (93.3) (72.9)
Net Transfers to Separate Accounts 35.4 (29.5)
Dividends to Policyholders (.5) (.5)
Federal Income Taxes (14.1) (14.6)
- --------------------------------------------------------------------------------
Net Cash From Operations (82.4) (4.6)
- --------------------------------------------------------------------------------
CASH FROM INVESTMENTS
Proceeds from Investments Sold, Matured or Repaid Bonds 434.9 327.5
Stocks 214.2 179.4
Mortgage Loans 71.2 43.6
Real Estate .6 3.2
Other Invested Assets 2.6 3.8
Taxes on Capital Gains and Losses 3.8 (2.3)
- --------------------------------------------------------------------------------
Total Investment Proceeds 727.3 555.2
- --------------------------------------------------------------------------------
Cost of Investments Acquired
Bonds (421.0) (311.2)
Stocks (213.2) (179.1)
Mortgage Loans (1.4) (72.5)
Real Estate (.3) (.4)
Other Invested Assets (2.9) (.8)
Miscellaneous Applications (1.4) (.3)
- --------------------------------------------------------------------------------
Total Investments Acquired (640.2) (564.3)
- --------------------------------------------------------------------------------
Net Change in Policy Loans and Premium Notes (.6) (2.2)
- --------------------------------------------------------------------------------
Net Cash From Investments 86.5 (11.3)
- --------------------------------------------------------------------------------
CASH FROM FINANCING AND MISCELLANEOUS SOURCES
Dividends to Parent (12.0) (8.0)
Other Sources, Net 9.2 7.8
- --------------------------------------------------------------------------------
Net Cash from Financing and Miscellaneous Sources (2.8) (.2)
- --------------------------------------------------------------------------------
Net Change in Cash and Short-Term Investments 1.3 (16.1)
Cash and Short-Term Investments at Beginning of Year 21.0 37.1
- --------------------------------------------------------------------------------
Cash and Short-Term Investments at End of Year $ 22.3 $ 21.0
- --------------------------------------------------------------------------------

The accompanying notes are an integral part of the statutory basis financial
statements.

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NOTES TO STATUTORY BASIS FINANCIAL STATEMENTS
RELIASTAR LIFE INSURANCE COMPANY OF NEW YORK
(A WHOLLY OWNED SUBSIDIARY OF SECURITY-CONNECTICUT LIFE INSURANCE COMPANY)

NOTE 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS
ReliaStar Life Insurance Company of New York (the Company) is principally
engaged in the business of providing individual life insurance and annuities;
employee benefit products and services; retirement plans; and life and health
reinsurance. The Company operates primarily in the United States and is
authorized to conduct business in all 50 states.

BASIS OF PRESENTATION
The accompanying statutory basis financial statements of the Company have been
prepared in conformity with accounting practices prescribed or permitted by the
National Association of Insurance Commissioners (NAIC) and the State of New
York. Such statutory insurance accounting practices differ from generally
accepted accounting principles. Significant differences include requiring the
immediate recognition of acquisition costs, providing only for income taxes
currently payable; recording assets considered non-admitted as a direct
adjustment of surplus; requiring an asset valuation reserve; establishing policy
reserves for life and annuity products based on statutory mortality and interest
rates; valuing bonds based primarily on amortized cost; for certain securities
sold, deferring any realized gain or loss due to changes in interest rates and
subsequently amortizing the deferred gain or loss over the remaining life of the
security sold; recognizing pension costs as paid; and retaining the historical
value of assets and liabilities upon a change in ownership. Total shareholder's
equity and net income as of and for the year ended December 31, 1999 based on
generally accepted accounting principles were $441.7 million and $39.8 million,
respectively. These amounts as of and for the year ended December 31, 2000 have
not been determined. The amounts in these financial statements pertain to the
entire business of the Company including, as appropriate, its Separate Account
business.

Effective January 1, 2001 the Company will adopt the accounting practices set
forth in the Accounting Practices and Procedures Manual issued by the NAIC and
as adopted by the State of New York. The impact on surplus of adopting these
standards at January 1, 2001 has not yet been completed.

All outstanding shares of the Company are owned by Security-Connecticut Life
Insurance Company (Security-Connecticut), a Minnesota domiciled insurance
company. Security-Connecticut is a wholly owned subsidiary of ReliaStar Life
Insurance Company (ReliaStar Life), a Minnesota domiciled insurance company.
ReliaStar Life is a wholly owned subsidiary of ReliaStar Financial Corp.
(ReliaStar), a holding and management company domiciled in Delaware. ReliaStar's
ultimate parent is ING Groep, N.V. (ING), a global financial services company
based in Amsterdam, Netherlands. ING acquired ReliaStar in September 2000.

USE OF ESTIMATES
The preparation of financial statements in conformity with accounting practices
prescribed or permitted by the NAIC and the State of New York requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities, the disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.

During 2000, the Company accrued approximately $2 million for employee-related
termination costs associated with integration activities initiated as a result
of being acquired by ING.

INVESTMENTS

Security investments are valued in accordance with the requirements of the NAIC,
as follows:

Bonds not backed by other loans at amortized cost using the interest method;
loan-backed bonds and structured securities at amortized cost using the interest
method including anticipated prepayments at the date of purchase.

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Significant changes in estimated cash flows from the original purchase
assumptions are accounted for using the interest method. Prepayment assumptions
for loan-backed bonds and structured securities were obtained from vendor
provided prepayment models, broker-dealer survey values or internal estimates.
These assumptions are consistent with the current interest rate and economic
environment. The retrospective adjustment method is used to value all
loan-backed bonds and structured securities.

Preferred stocks in good standing are valued at cost, which approximates market
value.

Common stocks are carried at estimated market value.

Mortgage loans on real estate are carried at amortized cost.

Real estate acquired in satisfaction of debt is stated at the lower of the
appraised value of the asset foreclosed, or book value of the mortgage at the
date of foreclosure.

Policy loans are valued at the aggregate unpaid balance.

Short-term investments are carried at amortized cost, which approximates market
value.

Other invested assets, primarily limited partnerships, are carried on the cost
or equity basis.

Derivative instruments, such as interest rate swaps, are valued in accordance
with the NAIC Accounting Practices and Procedures manual and the Purposes and
Procedures manual of the Securities Valuation Office. All derivative instruments
are valued consistently with the hedged items. The Company recognizes investment
income on interest rate swap agreements whereby the difference between the
amounts paid and amounts received or accrued on interest rate swap agreements
are reflected in net investment income.

All other security investments are presented at values prescribed by or deemed
acceptable to the NAIC, generally market value.

The Company uses straight-line depreciation for all of its depreciable assets,
with useful lives varying depending on the asset.

Realized investment gains and losses on sales of securities are included in the
determination of net income and are determined on the specific identification
method. Unrealized investment gains and losses are accounted for as direct
increases or decreases in surplus. Income tax effects of unrealized gains and
losses are not recognized.

Due and accrued income is excluded from investment income on mortgage loans,
bonds and short-term investments where interest is past due more than 90 days.
The total amount excluded at December 31, 2000 and 1999, was $1.0 million and
$.4 million, respectively.

SEPARATE ACCOUNTS
The Company operates separate accounts. The assets and liabilities of the
separate accounts are primarily related to variable life and annuity contracts
and represent policyholder-directed funds that are separately administered. The
assets (primarily investments) and liabilities (principally to contractholders)
of each account are clearly identifiable and distinguishable from other assets
and liabilities of the Company. Assets are carried at market value.

NON-ADMITTED ASSETS
Assets of the Company designated as "non-admitted," primarily agents' balances,
are excluded from admitted assets. The change in such assets, net of
depreciation, is reflected as a direct increase or decrease in surplus.

AGGREGATE RESERVES FOR POLICIES AND CONTRACTS
Reserves for future policy and contract benefits for life insurance are computed
by the net level premium and preliminary term and other modified reserve methods
on the basis of interest rates and mortality assumptions prescribed by state
regulatory authorities. Annuity reserves are computed using interest rates and
mortality assumptions, where needed, as prescribed by state regulatory
authorities. Waiver of premium reserves (disabled life reserves) are primarily
determined using morbidity and termination assumptions based on the 1952
Disablement Study combined with the 1958 CSO (individual) and the 1970
Intercompany Group

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Disability Table (group), using interest rates of 2 1/2% to 4%. Reserves for
long-term disability policies are primarily based on the 1987 CGDT using an
interest rate of 5%.

The Company waives deduction of deferred fractional premiums upon the death of
the insured and returns any portion of the final premium beyond the date of
death. Surrender values are not promised in excess of the legally computed
reserves.

Substandard reserves are calculated based on additional mortality and plan of
insurance for permanent plans. For term plans, substandard reserves are based on
appropriate multiples of standard rates of mortality. Universal life policies
are valued directly on a multiple table basis.

As of December 31, 2000, the Company had insurance in force of $6.8 billion for
which the gross premiums were less than the net premiums according to the
standard valuation set by the State of New York. Reserves to cover this
insurance totaled $24.2 million at December 31, 2000.

Of the total annuity reserves and deposit fund liabilities at December 31, 2000,
approximately 5% were subject to discretionary withdrawal -- with adjustment;
approximately 39% were subject to discretionary withdrawal - without adjustment;
approximately 7% were not subject to discretionary withdrawal provisions; and
approximately 49% were related to "market value" reserves in separate accounts
without investment guarantees whose surrender values vary with the market value
of the invested assets supporting the reserves.

REINSURANCE
Reinsurance premiums and benefits paid or provided are accounted for on bases
consistent with those used in accounting for the underlying policies and the
terms of the reinsurance contract.

INCOME TAXES DUE AND ACCRUED
The provision for income taxes is based upon income that is estimated to be
currently taxable.

PREMIUM REVENUE AND BENEFITS TO POLICYHOLDERS
Premiums on life insurance and annuity contracts are generally recognized as
revenue over the premium paying period of the contract. Contract benefits are
recognized over the life of the contract by providing reserves for future policy
and contract benefits.

POLICY ACQUISITION COSTS
Costs of acquiring new business are charged to operating expenses when incurred.

RECLASSIFICATIONS
Certain prior year amounts have been reclassified to conform to current year
presentation.

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NOTE 2. INVESTMENTS

BONDS
The statement value and estimated market values of investments in bonds by type
of investment were as follows:

GROSS UNREALIZED ESTIMATED
STATEMENT ----------------- MARKET
DECEMBER 31, 2000 (IN MILLIONS) VALUE GAINS (LOSSES) VALUE
- --------------------------------------------------------------------------------------------------------

United States Government and Government Agencies and
Authorities $ 15.9 $ .6 $ (.1) $ 16.4
States, Municipalities and Political Subdivisions 3.1 .1 -- 3.2
Foreign Governments 4.5 .3 -- 4.8
Public Utilities 107.8 1.4 (1.4) 107.8
Corporate Securities 916.2 13.6 (17.1) 912.7
Mortgage-Backed/Structured Finance 424.7 8.2 (18.9) 414.0
- --------------------------------------------------------------------------------------------------------
TOTAL $1,472.2 $24.2 $(37.5) $1,458.9
- --------------------------------------------------------------------------------------------------------

GROSS UNREALIZED ESTIMATED
STATEMENT ----------------- MARKET
DECEMBER 31, 1999 (IN MILLIONS) VALUE GAINS (LOSSES) VALUE
- --------------------------------------------------------------------------------------------------------

United States Government and Government Agencies and
Authorities $ 13.6 $ .3 $ (.4) $ 13.5
States, Municipalities and Political Subdivisions 1.9 -- (.5) 1.4
Foreign Governments 8.2 .1 -- 8.3
Public Utilities 100.3 .9 (1.6) 99.6
Corporate Securities 990.9 9.0 (26.2) 973.7
Mortgage-Backed/Structured Finance 385.9 1.9 (12.1) 375.7
- --------------------------------------------------------------------------------------------------------
TOTAL $1,500.8 $12.2 $(40.8) $1,472.2
- --------------------------------------------------------------------------------------------------------

The statement value and estimated market value of bonds, by contractual
maturity, are shown below. Expected maturities will differ from contractual
maturities because borrowers may have the right to call or prepay obligations
with or without call or prepayment penalties.

ESTIMATED
STATEMENT MARKET
DECEMBER 31, 2000 (IN MILLIONS) VALUE VALUE
- --------------------------------------------------------------------------------------

Maturing in:
One Year or Less $ 97.0 $ 97.4
One to Five Years 452.9 455.4
Five to Ten Years 359.4 355.3
Ten Years or Later 138.2 136.8
Mortgage-Backed/Structured Finance 424.7 414.0
- --------------------------------------------------------------------------------------
TOTAL $1,472.2 $1,458.9
- --------------------------------------------------------------------------------------

The estimated market values for actively traded marketable bonds are determined
based upon quoted market prices. The estimated market values for marketable
bonds without an active market are obtained through several commercial pricing
services, which provide the estimated market values. Estimated market values of
privately placed bonds which are not considered problems are determined using a
matrix-based pricing model. The model considers the current level of risk-free
interest rates, current corporate spreads, the credit quality of the issuer and
cash flow characteristics of the security. Using this data, the model generates
market values which the Company considers reflective of the estimated market
value of each privately placed bond. Estimated market values for privately
placed bonds which are considered problems are determined through consideration
of factors such as the net worth of the borrower, the value of collateral, the
capital structure of

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the borrow, the presence of guarantees and the Company's evaluation of the
borrower's ability to compete in their relevant market.

At December 31, 2000, the largest industry concentration of the private
placement portfolio was mortgage-backed structured finance where 22% of the
portfolio was invested, and the largest industry concentration of the marketable
bond portfolio was mortgage-backed/structured finance, where 31% of the
portfolio was invested.

STOCKS
The cost and statement value of stocks were as follows:

2000 1999
DECEMBER 31 (IN MILLIONS) ---- ----
- ----------------------------------------------------------------------------

Cost $5.7 $6.8
Gross Unrealized Gains -- .2
Gross Unrealized Losses (.7) (.6)
- ----------------------------------------------------------------------------
STATEMENT VALUE $5.0 $6.4
- ----------------------------------------------------------------------------

MORTGAGE LOANS ON REAL ESTATE
The lending rate for all mortgage loans issued during 2000 was 8.25%.

During 2000 and 1999, the Company did not reduce interest rates of outstanding
mortgage loans.

The maximum percentage of any one loan to the value of security at the time of
the loan was 80%. Fire insurance is required on all properties covered by
mortgage loans at least equal to the excess of the loan over the maximum loan
which would be permitted by law on the land without buildings. As of December
31, 2000, the Company held no mortgages with interest more than one year
overdue.

At December 31, 2000, the largest geographic concentration of commercial
mortgage loans was in the Midwest region of the United States, where
approximately 36% of the commercial mortgage loan portfolio was invested.

INVESTMENT INCOME
Investment income summarized by type of investment was as follows:

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
- --------------------------------------------------------------------------------

Bonds $113.1 $116.0
Mortgage Loans on Real Estate 23.6 24.2
Real Estate -- .4
Policy Loans 5.9 5.8
Short-Term Investments .7 1.1
Other 2.1 2.3
- --------------------------------------------------------------------------------
Gross Investment Income 145.4 149.8
Investment Expenses 3.3 2.9
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME $142.1 $146.9
- --------------------------------------------------------------------------------

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REALIZED INVESTMENT GAINS AND LOSSES
Net realized capital gains (losses) were as follows:

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
- -------------------------------------------------------------------------------

Bonds
Gross Gains $ 3.0 $ 3.5
Gross Losses (21.7) (3.3)
Mortgage Loans on Real Estate (1.8) .3
Real Estate -- (.1)
Other (.8) .2
- -------------------------------------------------------------------------------
Net Pretax Realized Capital Gains and Losses (21.3) .6
Income Tax Benefit (Expense) 4.2 (1.4)
Net Pretax Realized Capital Gains and Losses Transferred to
Interest Maintenance Reserve (IMR) 7.3 (1.7)
Income Tax Expense (Benefit) Transferred to IMR (2.6) .6
- -------------------------------------------------------------------------------
NET REALIZED CAPITAL LOSSES, NET OF TAX $(12.4) $(1.9)
- -------------------------------------------------------------------------------

Proceeds from the sale of bonds were $222.0 million and $167.0 million during
2000 and 1999, respectively.

DERIVATIVE INSTRUMENTS
The Company has an established program prescribing the use of derivatives in its
asset/liability management activity. The investment policy of the Company
expressly precludes the use of such instruments for speculative purposes. The
policy details permissible uses and instruments and contains accounting and
management controls designed to assure compliance with these policies. The
Company is not a party to leveraged derivatives.

The insurance liabilities of the Company are sensitive to changes in market
interest rates. The Company has established procedures for evaluating these
liabilities and structures investment asset portfolios with compatible
characteristics. Investment assets are selected which provide yield, cash flow
and interest rate sensitivities appropriate to support the insurance products.

The Company uses interest rate swaps as part of this asset/liability management
program. The Company has acquired a significant amount of certain shorter
duration investments, such as floating rate or adjustable rate investments.
Acquisition of these assets shortens the duration of an asset portfolio. The
Company uses interest rate swaps to extend the duration of these portfolios as
an alternative to purchasing longer duration investments.

The Company is exposed to credit-related losses in the event of nonperformance
by counterparties to derivative instruments, but it does not expect any
counterparties to fail to meet their obligations given their high credit
ratings. In addition, the Company has established an issuer holder limitation
program whereby the maximum credit exposure to a single issuer is established
based upon the credit rating of the issuer and the structure of the investment.
The positive market value of swap positions are included in the computation of
the maximum issuer limitation.

NOTE 3. EMPLOYEE BENEFIT PLANS

SUCCESS SHARING PLAN AND ESOP
The Success Sharing Plan and ESOP (Success Sharing Plan) was designed to
increase employee ownership and reward employees when certain ReliaStar
performance objectives are met. Essentially all employees are eligible to
participate in the Success Sharing Plan. The Success Sharing Plan has both
qualified and nonqualified components. The nonqualified component is equal to
25% of the annual award and is paid in cash to employees. The qualified
component is equal to 75% of the annual award which is contributed to the ESOP
portion of the Success Sharing Plan.

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In addition, the Success Sharing Plan has a 401(k) feature whereby participants
may elect to contribute a percentage of their eligible earnings to the plan. The
Company matches participants' 401(k) contributions up to 6% of eligible
earnings.

Costs charged to expense for the Success Sharing Plan for both of the years
ended December 31, 2000 and 1999, was $.8 million, respectively.

PENSION AND OTHER POSTRETIREMENT BENEFITS
Pension Plans -- The Company participates in a funded noncontributory defined
benefit retirement plan sponsored by an affiliate which provides benefits to
employees upon retirement (Pension Plan). Effective December 31, 1998, the
qualified defined benefit retirement plan was amended to suspend the accrual of
additional benefits for future services. Eligible employees retain all of their
accrued benefits as of December 31, 1998, which will be paid monthly at
retirement according to the provisions of the plan. Employees meeting certain
age and service requirements will receive certain transition benefits until
retirement.

At January 1, 2000, the date of the most recent actuarial valuation, the plan
accumulated benefit obligation/present value of accrued benefits and the amount
of vested benefits for the Pension Plan was $192.3 million and $188.4 million,
respectively, based on an assumed 8.5% interest rate. The fair value of plan
assets was $347.6 million as of January 1, 2000 and included in plan assets are
1.2 million shares of ReliaStar common stock with a fair value of $48.3 million
as of January 1, 2000.

A pension credit totaling $.3 million and $.1 million for the years ended
December 31, 2000 and 1999, respectively, was allocated to the Company for its
portion of the cost of the Pension Plan.

The Company and ReliaStar also have unfunded noncontributory defined benefit
plans providing for benefits to employees in excess of limits for qualified
retirement plans.

Postretirement Benefits -- Through a plan sponsored by an affiliate, the Company
provides certain health care and life insurance benefits to retired employees
and their eligible dependents (Postretirement Plan). The postretirement health
care plan is contributory, with retiree contribution levels adjusted annually;
the life insurance plan provides a flat amount of noncontributory coverage and
optional contributory coverage.

The amount of accumulated benefits obligation for retirees and vested employees
covered under the Postretirement Plan as of December 31, 2000 and 1999, was
$14.2 million and $11.1 million, respectively, and the amount of accumulated
benefits obligation for non-vested employees as of December 31, 2000 and 1999,
was $3.1 million and $2.5 million respectively. The discount rate used in
determining the postretirement benefit obligation as of December 31, 2000 was
7.75% and health care cost trend rate used was 8.5% trending to 5.5% in 2007 and
thereafter. A one-percentage point increase in the assumed health care cost
trend rate would not have a significant impact on the postretirement benefit
obligation or the service and interest cost components of annual expense.

A credit totaling $32,000 and $40,000 was allocated to the Company for its
portion of the cost of the Postretirement Plan for the years ended December 31,
2000 and 1999, respectively.

STOCK INCENTIVE PLAN
Officers and key employees of the Company participated in the stock incentive
plans of ReliaStar. ReliaStar applies Accounting Principles Board Opinion No. 25
and related interpretations in accounting for its plans. Accordingly, no
compensation expense for stock-based compensation plans has been allocated to
the Company.

NOTE 4. INCOME TAXES

The Company will prepare two federal tax returns for the year ended December 31,
2000 as a result of being acquired by ING. One will include the period January
1, 2000 through September 1, 2000, the second will be for the period September
2, 2000 through December 31, 2000.

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The tax return for the period January 1 through September 1, 2000 will be
consolidated with it's parent, Security-Connecticut Life Insurance Company.

The tax return for the period September 2 through December 31, 2000 will be
consolidated with Northern Life Insurance Company, Security-Connecticut Life
Insurance Company and ReliaStar Life Insurance Company.

The method by which the total consolidated federal income tax for each entity is
allocated to each of these companies is subject to a written agreements.
Allocation is based on separate return calculations such that each company in
the consolidated return pays the same tax or receives the same refunds it would
have paid or received had it consistently filed separate federal income tax
returns. Intercompany tax balances are settled within a reasonable time after
filing of the consolidated federal income tax returns with the Internal Revenue
Service.

Federal income tax regulations allowed certain special deductions for 1983 and
prior years which are accumulated in a memorandum tax account designated as
"policyholders' surplus." Generally, this policyholders' surplus account will
become subject to tax at the then current rates only if the accumulated balance
exceeds certain maximum limitations or if certain cash distributions are deemed
to be paid out of the account. At December 31, 2000, the Company had accumulated
approximately $11.3 million in its separate policyholders' surplus account.

The difference between the U.S. federal income tax rate and the Company's
effective tax rate is summarized as follows:

YEAR ENDED DECEMBER 31 2000 1999
- ----------------------------------------------------------------------------

Statutory Tax Rate 35.0% 35.0%
Decrease in Liability for Prior Years' Taxes (6.9) (2.9)
Deferred Acquisition Cost Tax 2.0 1.0
Tax Reserves 15.3 6.6
Other (3.8) (5.3)
- ----------------------------------------------------------------------------
EFFECTIVE TAX RATE 41.6% 34.4%
- ----------------------------------------------------------------------------

Cash paid to Security-Connecticut for federal income taxes was $10.3 million and
$16.9 million during 2000 and 1999, respectively.

NOTE 5. CAPITAL AND SURPLUS

The ability of the Company to pay cash dividends to its parent is restricted by
law or subject to approval of the insurance regulatory authorities of New York.
These authorities recognize only statutory accounting practices for determining
the ability of an insurer to pay dividends to its shareholders.

Under New York insurance law regulating the payment of dividends by the Company,
any such payment must be paid solely from the earned surplus of the Company and
advance notice thereof must be provided to the Superintendent of the New York
Department of Insurance (the Superintendent). Earned surplus means the earned
surplus as determined in accordance with statutory accounting practices
(unassigned funds), less the amount of such earned surplus which is attributable
to unrealized capital gains. Further, without approval of the Superintendent,
the Company may not pay in any calendar year any dividend which, when combined
with other dividends paid within the preceding 12 months, exceeds the lesser of
(i) 10% of the Company's statutory surplus at the prior year end or (ii) 100% of
the Company's statutory net investment income for the prior calendar year.

The Company has 1,377,863 authorized shares of common stock with a par value of
$2.00 per share, all of which are outstanding.

Total unassigned surplus at December 31, 2000 was $102.7 million and has no
restrictions, except as described above.

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NOTE 6. REINSURANCE

The Company is a member of reinsurance associations established for the purpose
of ceding the excess of life insurance over retention limits. The Company's
retention limit is $300,000 per insurable life for individual coverage. For
group coverage and reinsurance assumed, the retention is $300,000 per life with
per occurrence limitations, subject to certain maximums.

Reinsurance contracts do not relieve the Company from its obligations to
policyholders. Failure of reinsurers to honor their obligations could result in
losses to the Company; consequently, allowances are established for amounts
deemed uncollectible. The amount of the allowance for uncollectible reinsurance
receivables was immaterial at December 31, 2000 and 1999. The Company evaluates
the financial condition of its reinsurers and monitors concentrations of credit
risk to minimize its exposure to significant losses from reinsurer insolvencies.

As of December 31, 2000, $9.1 billion of life insurance in force was ceded to
other companies of which 29% (based on inforce) has been ceded to an
unaffiliated reinsurer and 50% (based on inforce) has been ceded to affiliates.
In addition, the Company had assumed $3.0 billion of life insurance in force as
of December 31, 2000.

The effect of reinsurance on premiums and recoveries is as follows:

YEAR ENDED DECEMBER 31 (IN MILLIONS) 2000 1999
- --------------------------------------------------------------------------------

Direct Premiums $227.8 $227.7
Reinsurance Assumed 2.9 2.4
Reinsurance Ceded (40.3) (31.1)
- --------------------------------------------------------------------------------
NET PREMIUMS $190.4 $199.0
- --------------------------------------------------------------------------------
REINSURANCE RECOVERIES $ 13.4 $ 14.1
- --------------------------------------------------------------------------------

NOTE 7. RELATED PARTY TRANSACTIONS

The Company maintains intercompany loan agreements with its affiliates. There
were no intercompany loans outstanding at December 31, 2000 or 1999.

The Company and its affiliates have entered into agreements whereby they provide
certain management, administrative, legal and other services to each other. The
net amounts billed to the Company were $20.8 million and $25.3 million in 2000
and 1999, respectively. The net costs allocated to the Company under these
agreements may not be indicative of costs the Company might incur if these
services were not provided by the Company's affiliates.

NOTE 8. COMMITMENTS AND CONTINGENCIES

LITIGATION
The Company is a defendant in various lawsuits in connection with the normal
conduct of its insurance operations. In the opinion of management, the ultimate
resolution of such litigation will not result in any material adverse impact to
the financial position of the Company as of December 31, 2000.

FINANCIAL INSTRUMENTS
The Company is a party to financial instruments with on and off-balance-sheet
risk in the normal course of business to reduce its exposure to fluctuations in
interest rates. These financial instruments include commitments to extend credit
and interest rate swaps. Those instruments involve, to varying degrees, elements
of credit, interest rate, or liquidity risk in excess of the amount recognized
in the Statutory Basis Statements of Admitted Assets, Liabilities, Surplus and
Other Funds.

The Company's exposure to credit loss in the event of nonperformance by the
other party to the financial instrument for commitments to extend credit is
represented by the contractual amount of those instruments. The Company uses the
same credit policies in making commitments and conditional obligations as it
does for

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on-balance-sheet instruments. For swaps the contract or notional amounts do not
represent exposure to credit loss. The Company's exposure to credit loss is
limited to those financial instruments where the Company has an unrealized gain.

Unless otherwise noted, the Company does not require collateral or other
security to support financial instruments with credit risk.

DECEMBER 31 (IN MILLIONS) 2000 1999
- -----------------------------------------------------------------------------

Contract or Notional Amount Financial Instruments Whose
Contract Amounts Represent Credit Risk:
Commitments to Extend Credit -- $5.9
Financial Instruments Whose Notional or Contract Amounts
Exceed the Amount of Credit Risk:
Interest Rate Swap Agreements $20.0 50.0
- -----------------------------------------------------------------------------

Commitments to Extend Credit -- Commitments to extend credit are legally binding
agreements to lend to a customer. Commitments generally have fixed expiration
dates or other termination clauses and may require payment of a fee. They
generally may be terminated by the Company in the event of deterioration in the
financial condition of the borrower. Since some of the commitments are expected
to expire without being drawn upon, the total commitment amounts do not
necessarily represent future liquidity requirements. The Company evaluates each
customer's creditworthiness on a case-by-case basis.

Interest Rate Swap Agreements -- The Company enters into interest rate swap
agreements to manage interest rate exposure. The primary reason for the interest
rate swap agreements is to extend the duration of adjustable rate investments.
Interest rate swap transactions generally involve the exchange of fixed and
floating rate interest payment obligations without the exchange of the
underlying principal amounts. Changes in market interest rates impact income
from adjustable rate investments and have an opposite (and approximately
offsetting) effect on the reported income from the swap portfolio. Notional
principal amounts are often used to express the volume of these transactions but
do not represent the much smaller amounts potentially subject to credit risk.
The amount subject to credit risk is approximately equal to the unrealized gain
on the agreements. At December 31, 2000, there was no unrealized gain on the
agreements.

LEASES
The Company has operating leases for office space and certain computer
processing and other equipment. Rental expense for these items was $.6 million
and $1.8 million for 2000 and 1999, respectively.

Future minimum aggregate rental commitments at December 31, 2000 for operating
leases were as follows:

(IN MILLIONS)
- --------------------------------------------------------------------------------------------

2001-$.6 2004-$ .7
2002-$.7 2005-$ .6
2003-$.7 2006 and thereafter - $--
- --------------------------------------------------------------------------------------------

NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS

The following disclosures about financial instruments, whether or not recognized
in the balance sheet, are provided for financial instruments for which it is
practicable to estimate that value. In cases where quoted market prices are not
available, fair values are based on estimates using present value or other
valuation techniques. Those techniques are significantly affected by the
assumptions used, including the discount rate and estimates of future cash
flows. In that regard, the derived fair value estimates, in many cases, could
not be realized in immediate settlement of the instrument.

Certain financial instruments and all nonfinancial instruments have been
excluded from the following disclosures, accordingly, the aggregate fair value
amounts presented do not represent the underlying value of the Company.

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The fair value estimates presented herein are based on pertinent information
available to management as of December 31, 2000 and 1999. Although management is
not aware of any factors that would significantly affect the estimated fair
value amounts, such amounts have not been comprehensively revalued for purposes
of these financial statements since that date; therefore, current estimates of
fair value may differ significantly from the amounts presented herein.

The following methods and assumptions were used by the Company in estimating its
fair value disclosures for financial instruments:

BONDS -- The estimated market value disclosures for bonds satisfy the fair
value disclosure requirements. (see Note 2)

STOCKS -- Fair value equals carrying value for common stocks as these
securities are carried at NAIC value, which approximates quoted market
value. Fair value for preferred stocks equals NAIC market value, which
approximates quoted market value.

MORTGAGE LOANS ON REAL ESTATE -- The fair values for mortgage loans on real
estate are estimated using discounted cash flow analyses, using interest
rates currently being offered in the marketplace for similar loans to
borrowers with similar credit ratings. Loans with similar characteristics
are aggregated for purposes of the calculations.

CASH, SHORT-TERM INVESTMENTS AND POLICY LOANS -- The carrying amounts for
these assets approximate the assets' fair values.

OTHER FINANCIAL INSTRUMENTS REPORTED AS ASSETS -- The carrying amounts for
these financial instruments (primarily premiums and other accounts
receivable and accrued investment income) approximate those assets' fair
values.

INVESTMENT CONTRACT LIABILITIES -- The fair value for deferred annuities
was estimated to be the amount payable on demand at the reporting date as
those investment contracts have no defined maturity and are similar to a
deposit liability. The amount payable at the reporting date was calculated
as the account balance less applicable surrender charges.

The fair values for supplementary contracts without life contingencies and
immediate annuities were estimated using discounted cash flow analyses. The
discount rate was based upon treasury rates plus a pricing margin.

The carrying amounts reported for other investment contracts which includes
retirement plan deposits, approximate those liabilities' fair value.

CLAIM AND OTHER DEPOSIT FUNDS -- The carrying amounts for claim and other
deposit funds approximate the liabilities' fair values.

OTHER FINANCIAL INSTRUMENTS REPORTED AS LIABILITIES -- The carrying amounts
for other financial instruments (primarily normal payables of a short-term
nature) approximate those liabilities' fair values.

INTEREST RATE SWAPS -- The fair value for interest rate swaps was estimated
using discounted cash flow analyses. The discount rate was based upon rates
currently being offered for similar interest rate swaps available from
similar counterparties.

97
101

The carrying amounts and estimated fair values of the Company's financial
instruments as of December 31, 2000 and 1999, are as follows:

2000 1999
-------------------- --------------------
CARRYING FAIR CARRYING FAIR
DECEMBER 31 (IN MILLIONS) AMOUNT VALUE AMOUNT VALUE
- ------------------------------------------------------------------------------------------------------

FINANCIAL INSTRUMENTS RECORDED AS ASSETS:
Bonds $1,472.2 $1,458.9 $1,500.8 $1,472.2
Stocks 5.0 5.0 6.4 6.4
Mortgage Loans on Real Estate:
Commercial 248.3 251.8 268.5 265.2
Residential and Other -- -- 51.5 51.2
Policy Loans 84.9 84.9 84.3 84.3
Cash and Short-Term Investments 22.3 22.3 21.0 21.0
Other Financial Instruments Recorded as Assets 46.2 46.2 45.4 45.4
FINANCIAL INSTRUMENTS RECORDED AS LIABILITIES:
Investment Contracts
Deferred Annuities (495.2) (518.5) (645.2) (637.8)
Supplementary Contracts and Immediate Annuities (34.6) (28.6) (36.4) (31.6)
Other Investment Contracts (8.2) (8.2) (11.8) (11.8)
Claim and Other Deposit Funds (9.7) (9.7) (8.5) (8.5)
Other Financial Instruments Recorded as Liabilities (69.1) (69.1) (43.4) (43.4)
OFF-BALANCE SHEET FINANCIAL INSTRUMENTS:
Interest Rate Swaps -- -- -- --
- ------------------------------------------------------------------------------------------------------

Fair value estimates are made at a specific point in time, based on relevant
market information and information about the financial instrument. These
estimates do not reflect any premium or discount that could result from offering
for sale at one time the Company's holdings of a particular financial
instrument. Because no market exists for a significant portion of the Company's
financial instruments, fair value estimates are based on judgments regarding
future expected loss experience, current economic conditions, risk
characteristics of various financial instruments, and other factors. These
estimates are subjective in nature and involve uncertainties and matters of
significant judgment and, therefore, cannot be determined with precision.
Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial
instruments without attempting to estimate the value of anticipated future
business and the value of assets and liabilities that are not considered
financial instruments. In addition, the tax ramifications related to the
realization of the unrealized gains and losses can have a significant effect on
fair value estimates and have not been considered in the estimates.

98
102

APPENDIX A

THE FIXED ACCOUNT

The Fixed Account consists of all of our assets other than those in our
separate accounts. We have complete ownership and control of all of the assets
of the Fixed Account.

Because of exemptions and exclusions contained in the Securities Act of
1933 and the Investment Company Act of 1940, the Fixed Account has not been
registered under these acts. Neither the Fixed Account nor any interest in it is
subject to the provisions of these acts and as a result the SEC has not reviewed
the disclosures in this Prospectus relating to the Fixed Account. However,
disclosures relating to the Fixed Account are subject to generally applicable
provisions of the federal securities laws relating to the accuracy and
completeness of statements made in prospectuses.

We guarantee both principal and interest on amounts credited to the Fixed
Account. We credit interest at an effective annual rate of at least 4%,
independent of the investment experience of the Fixed Account. From time to
time, we may guarantee interest at a rate higher than 4%.

ANY INTEREST CREDITED TO AMOUNTS ALLOCATED TO THE FIXED ACCOUNT IN EXCESS
OF 4% PER YEAR WILL BE DETERMINED AT OUR SOLE DISCRETION. YOU ASSUME THE RISK
THAT INTEREST CREDITED TO THE FIXED ACCOUNT MAY NOT EXCEED THE MINIMUM GUARANTEE
OF 4% FOR A GIVEN YEAR.

We do not use a specific formula for determining excess interest credits.
However, we consider the following:

- General economic trends,
- Rates of return currently available on our investments,
- Rates of return anticipated in our investments, regulatory and tax
factors, and
- Competitive factors.

We are not aware of any statutory limitations to the maximum amount of
interest we may credit and our Board of Directors has not set any limitations.

The Fixed Accumulation Value of the Policy is the sum of the Net Premiums
credited to it in the Fixed Account. It is increased by transfers and Loan
Amounts from the Variable Account, and interest credits. It is decreased by
Monthly Deductions and partial withdrawals taken from it in the Fixed Account
and transfers to the Variable Account. The Fixed Accumulation Value will be
calculated at least monthly on the monthly anniversary date.

You may transfer all or part of your Fixed Accumulation Value to the
Sub-Accounts of the Variable Account, subject to the following transfer
limitations:

- The request to transfer must be postmarked no more than 30 days before
the Policy Anniversary and no later than 30 days after the Policy
Anniversary. Only one transfer is allowed during this period.
- The Fixed Accumulation Value after the transfer must be at least equal to
the Loan Amount.
- No more than 50% of the Fixed Accumulation Value (minus any Loan Amount)
may be transferred unless the balance is less than $2,000 in which case,
the full Fixed Accumulation Value (minus any Loan Amount) may be
transferred.
- You must transfer at least:

-- $500, or

-- the total Fixed Accumulation Value (minus any Loan Amount) if less
than $500.

We make the Monthly Deduction from your Fixed Accumulation Value in
proportion to the total Accumulation Value of the Policy.

The Surrender Charge described in the Prospectus applies to the total
Accumulation Value, which includes the Fixed Accumulation Value. If the Owner
surrenders the Policy for its Cash Surrender Value, the Fixed Accumulation Value
will be reduced by any applicable Surrender Charge, any Loan Amount and unpaid
Monthly Deductions applicable to the Fixed Account.

A-1
103

APPENDIX B

CALCULATION OF ACCUMULATION VALUE

The Accumulation Value of the Policy is equal to the sum of the Variable
Accumulation Value plus the Fixed Accumulation Value.

VARIABLE ACCUMULATION VALUE

The Variable Accumulation Value is the total of your values in each
Sub-Account. The value for each Sub-Account is equal to:

1 multiplied by 2, where:

Is your current number of Accumulation Units (described below).

Is the current Unit Value (described below).

The Variable Accumulation Value will vary from Valuation Date to Valuation
Date (described below) reflecting changes in 1 and 2 above.

ACCUMULATION UNITS. When transactions are made which affect the Variable
Accumulation Value, dollar amounts are converted to Accumulation Units. The
number of Accumulation Units for a transaction is found by dividing the dollar
amount of the transaction by the current Unit Value.

The number of Accumulation Units for a Sub-Account increases when:

- Net Premiums are credited to that Sub-Account; or

- Transfers from the Fixed Account or other Sub-Accounts are credited to
that Sub-Account.

The number of Accumulation Units for a Sub-Account decreases when:

- You take out a Policy loan which causes a transfer from that Sub-Account;

- You take a partial withdrawal from that Sub-Account;

- We take a portion of the Monthly Deduction from that Sub-Account; or

- Transfers are made from that Sub-Account to the Fixed Account or other
Sub-Accounts.

UNIT VALUE. The Unit Value for a Sub-Account on any Valuation Date is equal
to the previous Unit Value times the Net Investment Factor for that Sub-Account
(described below) for the Valuation Period (described below) ending on that
Valuation Date.

NET INVESTMENT FACTOR. The Net Investment Factor is a number that reflects
charges to the Policy and the investment performance during a Valuation Period
of the Fund in which a Sub-Account is invested. If the Net Investment Factor is
greater than one, the Unit Value is increased. If the Net investment Factor is
less than one, the Unit Value is decreased. The Net Investment Factor for a
Sub-Account is determined by dividing 1 by 2.

(1/2), where:

Is the result of:

- The net asset value per share of the Fund shares in which the Sub-Account
invests, determined at the end of the current Valuation Period;

B-1
104

- Plus the per share amount of any dividend or capital gain distributions
made on the Fund shares in which the Sub-Account invests during the
current Valuation Period;

- Plus or minus a per share charge or credit for any taxes reserved which
we determine has resulted from the investment operations of the
Sub-Account and to be applicable to the Policy.

Is the result of:

- The net asset value per share of the Fund shares held in the Sub-Account,
determined at the end of the last prior Valuation Period;

- Plus or minus a per share charge or credit for any taxes reserved for
during the last prior Valuation Period which we determine resulted from
the investment operations of the Sub-Account and was applicable to the
Policy.

VALUATION DATE; VALUATION PERIOD. A Valuation Date is each day the New York
Stock Exchange is open for business except for a day that a Sub-Account's
corresponding Fund does not value its shares. A Valuation Period is the period
between two successive Valuation Dates, commencing at the close of business of a
Valuation Date and ending at the close of business on the next Valuation Date.

FIXED ACCUMULATION VALUE

The Fixed Accumulation Value on the Policy Date is your Net Premium
credited to the Fixed Account on that date minus the Monthly Deduction
applicable to the Fixed Accumulation Value for the first Policy Month.

After the Policy Date, the Fixed Accumulation Value is calculated as:

1 + 2 + 3 + 4 - 5 - 6, where:

1
Is the Fixed Accumulation Value on the preceding Monthly Anniversary, plus
interest from the Monthly Anniversary to the date of the calculation.

2
Is the total of your Net Premiums credited to the Fixed Account since the
preceding Monthly Anniversary, plus interest from the date premiums are credited
to the date of the calculation.

3
Is the total of your transfers from the Variable Account to the Fixed Account
since the preceding Monthly Anniversary, plus interest from the date of transfer
to the date of the calculation.

4
Is the total of your Loan Amount transferred from the Variable Account since the
preceding Monthly Anniversary.

5
Is the total of your transfers to the Variable Account from the Fixed Account
since the preceding Monthly Anniversary, plus interest from the date of transfer
to the date of the calculation.

6
Is the total of your partial withdrawals from the Fixed Account since the
preceding Monthly Anniversary, plus interest from the date of withdrawal to the
date of the calculation.

If the date of the calculation is a Monthly Anniversary, we also reduce the
Fixed Accumulation Value by the applicable Monthly Deduction for the Policy
Month following the Monthly Anniversary.

The minimum interest rate applied in the calculation of the Fixed
Accumulation Value is an effective annual rate of 4%. Interest in excess of the
minimum rate may be applied in the calculation of your Fixed Accumulation Value
in a manner which our Board of Directors determines.
B-2
105

APPENDIX C
MAXIMUM SURRENDER CHARGE PER $1,000 OF FACE AMOUNT

INSURED'S AGE AT INSURED'S AGE AT
POLICY DATE OR POLICY DATE OR
EFFECTIVE DATE OF CHARGE PER $1,000 OF FACE AMOUNT EFFECTIVE DATE OF CHARGE PER $1,000 OF FACE AMOUNT
INCREASE, AS (INITIAL FACE AMOUNT OR AMOUNT OF INCREASE, AS (INITIAL FACE AMOUNT OR AMOUNT OF
APPROPRIATE REQUESTED INCREASE) APPROPRIATE REQUESTED INCREASE)
- ----------------- ----------------------------------- ----------------- -----------------------------------
MALE FEMALE UNISEX MALE FEMALE UNISEX
---- ------ ------ ---- ------ ------

0 2.16 1.98 2.10 43 8.57 7.45 8.18
1 2.20 1.97 2.12 44 8.79 7.63 8.38
2 2.25 1.98 2.16 45 9.00 7.79 8.58
3 2.30 2.00 2.20 46 9.26 7.99 8.82
4 2.36 2.03 2.24 47 9.53 8.22 9.07
5 2.43 2.07 2.30 48 9.83 8.46 9.35
6 2.50 2.13 2.37 49 10.14 8.73 9.65
7 2.58 2.20 2.45 50 10.46 9.02 9.96
8 2.68 2.27 2.54 51 10.78 9.31 10.27
9 2.78 2.36 2.63 52 11.12 9.60 10.59
10 2.89 2.45 2.74 53 11.48 9.89 10.92
11 3.01 2.55 2.85 54 11.85 10.18 11.27
12 3.12 2.66 2.96 55 12.24 10.48 11.62
13 3.24 2.75 3.07 56 12.63 10.76 11.98
14 3.35 2.85 3.18 57 13.07 11.08 12.37
15 3.47 2.94 3.28 58 13.56 11.44 12.82
16 3.58 3.03 3.39 59 14.10 11.85 13.31
17 3.70 3.13 3.50 60 14.68 12.29 13.84
18 3.83 3.25 3.63 61 15.27 12.74 14.38
19 3.96 3.38 3.76 62 15.87 13.19 14.93
20 4.10 3.53 3.90 63 16.48 13.66 15.49
21 4.25 3.68 4.05 64 17.09 14.13 16.05
22 4.41 3.84 4.21 65 17.70 14.60 16.62
23 4.57 3.99 4.37 66 18.27 15.05 17.14
24 4.74 4.13 4.53 67 18.92 15.56 17.74
25 4.91 4.26 4.68 68 19.64 16.15 18.42
26 5.09 4.39 4.85 69 20.44 16.80 19.17
27 5.29 4.55 5.03 70 21.29 17.51 19.97
28 5.51 4.73 5.24 71 22.13 18.21 20.76
29 5.74 4.95 5.46 72 22.99 18.96 21.58
30 5.99 5.19 5.71 73 23.84 19.73 22.40
31 6.13 5.36 5.86 74 24.71 20.53 23.25
32 6.28 5.53 6.02 75 25.57 21.36 24.10
33 6.44 5.68 6.17 76 25.15 21.13 23.74
34 6.60 5.82 6.33 77 24.54 20.75 23.21
35 6.76 5.96 6.48 78 23.69 20.16 22.45
36 6.91 6.07 6.62 79 22.53 19.31 21.40
37 7.10 6.22 6.79 80 21.00 18.12 19.99
38 7.31 6.39 6.99 81 19.03 16.53 18.16
39 7.55 6.59 7.21 82 17.17 15.04 16.42
40 7.81 6.81 7.46 83 15.50 13.70 14.87
41 8.08 7.04 7.72 84 14.08 12.58 13.56
42 8.33 7.25 7.95 85 13.00 11.74 12.56

- --------------------------------------------------------------------------------

C-1
106

(This Page Intentionally Left Blank)
107

APPENDIX D
MONTHLY AMOUNT CHARGES PER $1000 FACE AMOUNT
BASE POLICY -- NON TOBACCO RATE CLASSES

ISSUE ISSUE
AGE* MALE FEMALE UNISEX AGE* MALE FEMALE UNISEX
- ----- ---- ------ ------ ----- ---- ------ ------

0 0.1168 0.1139 0.1158 46 0.3510 0.3110 0.3370
1 0.1099 0.1052 0.1082 47 0.3670 0.3240 0.3520
2 0.1045 0.0985 0.1024 48 0.3830 0.3390 0.3670
3 0.1006 0.0938 0.0982 49 0.4000 0.3540 0.3840
4 0.0983 0.0910 0.0958 50 0.4190 0.3710 0.4020
5 0.0977 0.0901 0.0950 51 0.4380 0.3890 0.4210
6 0.0988 0.0911 0.0961 52 0.4580 0.4070 0.4400
7 0.1002 0.0924 0.0975 53 0.4790 0.4250 0.4600
8 0.1019 0.0938 0.0990 54 0.5010 0.4430 0.4810
9 0.1038 0.0953 0.1008 55 0.5240 0.4610 0.5020
10 0.1059 0.0970 0.1028 56 0.5470 0.4780 0.5230
11 0.1082 0.0988 0.1049 57 0.5740 0.4990 0.5480
12 0.1108 0.1008 0.1073 58 0.6050 0.5230 0.5770
13 0.1138 0.1030 0.1101 59 0.6410 0.5510 0.6090
14 0.1173 0.1056 0.1132 60 0.6800 0.5830 0.6460
15 0.1212 0.1084 0.1167 61 0.7240 0.6180 0.6870
16 0.1257 0.1117 0.1208 62 0.7700 0.6540 0.7290
17 0.1305 0.1155 0.1252 63 0.8170 0.6920 0.7730
18 0.1355 0.1198 0.1300 64 0.8650 0.7310 0.8180
19 0.1408 0.1246 0.1352 65 0.9140 0.7710 0.8640
20 0.1464 0.1299 0.1407 66 0.9650 0.8120 0.9110
21 0.1492 0.1336 0.1438 67 1.0210 0.8580 0.9640
22 0.1522 0.1370 0.1469 68 1.0840 0.9090 1.0230
23 0.1554 0.1401 0.1501 69 1.1530 0.9660 1.0880
24 0.1589 0.1431 0.1533 70 1.2290 1.0270 1.1580
25 0.1625 0.1458 0.1567 71 1.3100 1.0920 1.2340
26 0.1665 0.1484 0.1601 72 1.3980 1.1640 1.3160
27 0.1708 0.1518 0.1641 73 1.4910 1.2430 1.4040
28 0.1755 0.1560 0.1687 74 1.5910 1.3290 1.4990
29 0.1806 0.1610 0.1737 75 1.6980 1.4220 1.6010
30 0.1860 0.1668 0.1793 76 1.8120 1.5240 1.7110
31 0.1918 0.1733 0.1853 77 1.9400 1.6390 1.8350
32 0.1979 0.1796 0.1915 78 2.0830 1.7680 1.9730
33 0.2044 0.1859 0.1980 79 2.2420 1.9120 2.1270
34 0.2113 0.1921 0.2046 80 2.4160 2.0720 2.2960
35 0.2186 0.1983 0.2115 81 2.6080 2.2470 2.4810
36 0.2263 0.2045 0.2187 82 2.8140 2.4400 2.6830
37 0.2352 0.2118 0.2270 83 3.0360 2.6510 2.9020
38 0.2452 0.2203 0.2365 84 3.2750 2.8820 3.1370
39 0.2564 0.2299 0.2471 85 3.5300 3.1320 3.3910
40 0.2687 0.2406 0.2589
41 0.2821 0.2524 0.2717
42 0.2956 0.2641 0.2846
43 0.3092 0.2758 0.2975
44 0.3230 0.2875 0.3106
45 0.3371 0.2993 0.3239

- --------------------------------------------------------------------------------

* Based on the Insured's age on the Policy Date, or on the Effective Date of any
increase in Face Amount, as
appropriate.
D-1
108

APPENDIX D
MONTHLY AMOUNT CHARGES PER $1000 FACE AMOUNT
BASE POLICY -- TOBACCO RATE CLASSES

ISSUE ISSUE
AGE* MALE FEMALE UNISEX AGE* MALE FEMALE UNISEX
- ----- ---- ------ ------ ----- ---- ------ ------

0 0.1309 0.1142 0.1251 46 0.4360 0.3370 0.4010
1 0.1232 0.1076 0.1177 47 0.4560 0.3520 0.4200
2 0.1172 0.1026 0.1121 48 0.4790 0.3670 0.4400
3 0.1132 0.0992 0.1083 49 0.5030 0.3810 0.4600
4 0.1111 0.0975 0.1063 50 0.5290 0.3950 0.4820
5 0.1111 0.0975 0.1063 51 0.5570 0.4080 0.5050
6 0.1134 0.0993 0.1085 52 0.5860 0.4230 0.5290
7 0.1159 0.1012 0.1107 53 0.6150 0.4420 0.5540
8 0.1186 0.1030 0.1131 54 0.6440 0.4630 0.5810
9 0.1215 0.1049 0.1157 55 0.6730 0.4860 0.6080
10 0.1245 0.1067 0.1183 56 0.7030 0.5120 0.6360
11 0.1277 0.1085 0.1209 57 0.7370 0.5370 0.6670
12 0.1313 0.1107 0.1241 58 0.7750 0.5610 0.7000
13 0.1354 0.1136 0.1277 59 0.8180 0.5850 0.7370
14 0.1400 0.1170 0.1320 60 0.8670 0.6090 0.7770
15 0.1453 0.1211 0.1369 61 0.9210 0.6330 0.8200
16 0.1513 0.1259 0.1424 62 0.9770 0.6630 0.8670
17 0.1576 0.1308 0.1482 63 1.0340 0.7020 0.9180
18 0.1641 0.1357 0.1541 64 1.0930 0.7470 0.9720
19 0.1708 0.1406 0.1602 65 1.1530 0.8000 1.0300
20 0.1777 0.1455 0.1665 66 1.2140 0.8610 1.0900
21 0.1813 0.1484 0.1698 67 1.2810 0.9160 1.1530
22 0.1852 0.1519 0.1736 68 1.3550 0.9680 1.2190
23 0.1896 0.1558 0.1778 69 1.4350 1.0140 1.2880
24 0.1943 0.1602 0.1824 70 1.5230 1.0560 1.3590
25 0.1994 0.1651 0.1874 71 1.6160 1.0920 1.4330
26 0.2049 0.1705 0.1929 72 1.7160 1.1500 1.5180
27 0.2109 0.1756 0.1986 73 1.8210 1.2290 1.6140
28 0.2174 0.1807 0.2046 74 1.9330 1.3310 1.7220
29 0.2244 0.1857 0.2108 75 2.0510 1.4550 1.8420
30 0.2318 0.1905 0.2174 76 2.1770 1.6030 1.9760
31 0.2398 0.1953 0.2242 77 2.3140 1.7600 2.1200
32 0.2482 0.2011 0.2317 78 2.4620 1.9270 2.2750
33 0.2570 0.2077 0.2397 79 2.6230 2.1030 2.4410
34 0.2663 0.2152 0.2484 80 2.7960 2.2880 2.6180
35 0.2761 0.2236 0.2577 81 2.9830 2.4830 2.8080
36 0.2863 0.2328 0.2676 82 3.1820 2.6920 3.0110
37 0.2975 0.2417 0.2779 83 3.3950 2.9140 3.2270
38 0.3095 0.2502 0.2888 84 3.6210 3.1510 3.4570
39 0.3224 0.2585 0.3001 85 3.8620 3.4020 3.7010

40 0.3363 0.2664 0.3118

41 0.3511 0.2739 0.3241
42 0.3667 0.2832 0.3375
43 0.3829 0.2941 0.3518
44 0.3999 0.3067 0.3673
45 0.4176 0.3210 0.3838

- --------------------------------------------------------------------------------

* Based on the Insured's age on the Policy Date, or on the Effective Date of any
increase in Face Amount, as
appropriate.
D-2
109

UNDERTAKINGS TO FILE REPORTS

Subject to the terms and conditions of Section 15(d) of the Securities and
Exchange Act of 1934, the undersigned Registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that section.

RULE 484 UNDERTAKING

Insofar as indemnification for liability arising under the Securities Act
of 1933 (the "Act") may be permitted to directors, officers and controlling
persons of the Registrant pursuant to the foregoing provisions, or otherwise,
the Registrant has been advised that in the opinion of the Securities and
Exchange Commission such indemnification is against public policy as expressed
in the Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a director, officer or controlling
person of the Registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the Registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.

"REASONABLENESS" REPRESENTATION PURSUANT TO 26(e)(2)(A)
OF THE INVESTMENT COMPANY ACT OF 1940

ReliaStar Life Insurance Company of New York represents that the fees and
charges deducted under the flexible premium variable life insurance policy, in
the aggregate, are reasonable in relation to the services rendered, the expenses
expected to be incurred, and the risks assumed by ReliaStar Life Insurance
Company of New York.

II-1
110

PART II
CONTENTS OF REGISTRATION STATEMENT

This Registration Statement comprises the following papers and documents:

The Facing Sheet

The general form of Prospectus, consisting of 105 pages.

Undertaking to file reports.
Rule 484 Undertaking.
"Reasonableness" representation pursuant to Section 26(e)(2)(A) of the
Investment Company Act of 1940.
The signatures.

Written consents of the following persons:

1. Michael S. Fischer, Esquire -- Filed as part of EX-99.2

2. Craig A. Krogstad, FSA, MAAA -- Filed as part of EX-99.C6

3. Independent Auditors' Consents -- Filed as part of EX-99.C1

The following exhibits:

1. The following exhibits correspond to those required by Paragraph A
of the instructions as to exhibits in Form N-8B-2:

(1) (a) Resolution of Board of Directors of ReliaStar Life Insurance
Company of New York ("RLICNY") establishing the RLICNY
Variable Life Separate Account I.(1)
(b) Resolution of Board of Directors of RLICNY changing the name
of RLICNY changing the name of RLICNY Separate Account I.(4)
(2) Not applicable.
(3) (a) Form of General Distributor Agreement between Washington
Square Securities Inc. and RLICNY.(2)
(b) Specimens of WSSI Selling Agreements.(3)
(4) Not applicable.
(5) (a) Form of Policy available
(b) Policy Illustration.(7)
(6) (a) Amended Charter of RLICNY.(4)
(b) Amended Bylaws of RLICNY.(4)
(7) Not applicable.
(8) (a) Form of Participation Agreement by and between RLICNY and
Fred Alger Management, Inc.(3)
Exhibit -- Form of Amendment to Participation Agreement.(6)
(b) Form of Amendment No. 1 to Participation Agreement by and
between Depositor and Fred Alger Management, Inc.(5)
(c) Participation Agreement with Fidelity's Variable Insurance
Products Fund and Fidelity Distributors Corporation and Form
of Amendment No. 1.(1)
(d) Form of Amendment Nos. 2 and 3 to Participation Agreement
with Fidelity's Variable Insurance Products Fund and
Fidelity Distributors Corporation.(4)
(e) Form of Amendment No. 4 to Participation Agreement among
Depositor and Fidelity's Variable Insurance Products Fund
and Fidelity Distributors Corporation.(5)
(f) Participation Agreement with Fidelity's Variable Insurance
Products Fund II and Fidelity Distributors Corporation and
Form of Amendment No. 1.(1)

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111

(g) Form of Amendment Nos. 2 and 3 to Participation Agreement
with Fidelity's Variable Insurance Products Fund II and
Fidelity Distributors Corporation.(4)
(h) Form of Amendment No. 4 to Participation Agreement among
Depositor and Fidelity's Variable Insurance Products Fund II
and Fidelity Distributors Corporation.(5)
(i) Amendment No. 5 to Participation Agreement among Depositor
and Fidelity's Variable Insurance Products Fund II and
Fidelity Distributors Corporation.(9)
(j) Form of Participation Agreement by and between RLICNY and
Janus Aspen Series.(3)
(k) Form of Amendment No. 1 to Participation by and between
Depositor and Janus Aspen Series.(5)
(l) Form of Participation Agreement by and between RLICNY,
Neuberger Berman Advisers Management Trust, Advisers
Managers Trust and Neuberger Berman Management Inc.(3)
(m) Amendment No. 1 to Participation Agreement by and among
Depositor, Neuberger Berman Advisers Management Trust,
Advisers Managers Trust and Neuberger Berman Management
Inc.(5)
(n) Form of Participation Agreement by and between RLICNY and
OpCap Advisors.(3)
(o) Amendment No. 1 to Participation Agreement by and between
Depositor and OpCap Advisors.(5)
(p) Form of Participation Agreement with Putnam Variable Trust
(formerly known as Putnam Capital Manager Trust) and Putnam
Mutual Funds Corp.(2)
(q) Form of Service Agreement by and between RLICNY and Janus
Capital Corporation.(3)
(r) Form of Amendment No. 1 to Participation Agreement with
Putnam Variable Trust and Putnam Mutual Funds Corp.(4)
(s) Form of Amendment No. 2 to Participation Agreement among
Depositor and Putnam Variable Trust and Putnam Mutual Funds
Corp.(5)
(t) Form of Amendment No. 3 to Participation Agreement among
Depositor and Putnam Variable Trust and Putnam Mutual Funds
Corp.(9)
(u) Form of Service Agreement by and RLICNY and Fred Alger
Management, Inc.(3)
(v) Form of Service Contract with Fidelity Distributors
Corporation.(2)
(w) Form of Service Agreement with Fidelity Investments
Institutional Operations Company, Inc.(2)
(x) Form of Service Agreement by and between RLICNY and
Neuberger Berman Management Inc.(3)
(y) Form of Service Agreement by and between RLICNY and OpCap
Advisors.(3)
(z) Form of Management Services Agreement with ReliaStar Life
Insurance Company.(1)
(aa) Form of Participation Agreement by and between A-I-M
Variable Insurance Funds, Inc., A I M Distributors, Inc.,
and ReliaStar Life Insurance Company of New York.(6)
(bb) Form of Administrative Services Agreement between ReliaStar
Life Insurance Company, Northern Life Insurance Company,
ReliaStar Life Insurance Company of New York and A I M
Advisors, Inc.(6)
(cc) Form of Participation Agreement by and between the GCG Trust
and ReliaStar Life Insurance Company of New York.(9)
(dd) Form of Participation Agreement by and between ReliaStar
Life Insurance Company of New York, Pilgrim Variable
Products Trust, and Pilgrim Investment, Inc.(9)
(9) Not applicable.
(10) (a) Policy application.(4)
(b) Supplement to Policy Application Form.(6)

2. Opinion and consent of Michael S. Fischer, Esquire, as to the legality
of the Securities being registered. See EX-99.2.

II-3
112

3. Not applicable.

4. Not applicable.

EX-99.C1. Independent Auditors' Consent.
EX-99.C2. Not applicable.
EX-99.C3. Not applicable.
EX-99.C4. See EX-99.2.
EX-99.C5. Not applicable.
EX-99.C6. Actuarial Opinion and Consent.
EX-99.D1. Memorandum describing RLICNY's issuance, transfer and
redemption procedures for the Policies and RLICNY's
procedure for conversion to a fixed benefit policy.
EX-24. Powers of Attorney.(8)
William D. Bonneville
Stephen A. Carb
R. Michael Conley
Richard R. Crowl
Paula C. Cludray-Engelke
James G. Cochran
James R. Gelder
Ambassador Ulric Haynes, Jr.
Wayne R. Huneke
Mark S. Jordahl
Kenneth U. Kuk
James R. Miller
David S. Pendergrass
Fioravante G. Perrotta
Rodger D. Roenfeldt
Robert C. Salipante
John G. Turner
Charles B. Updike
Ross M. Weale

- ---------------
(1) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed December 31, 1996.

(2) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed May 9, 1997.

(3) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed August 1, 1997.

(4) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-47527, filed March 6, 1998.

(5) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed on April 30, 1999.

(6) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed on April 7, 2000.

(7) Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-52358, filed on December 20, 2000.

(8)Incorporated by reference to Registrant's Form S-6/A Registration Statement,
File No. 333-52358, filed on March 16, 2001.

(9)Incorporated by reference to Registrant's Form S-6 Registration Statement,
File No. 333-19123, filed on April 20, 2001.

II-4
113

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the Registrant,
ReliaStar Life Insurance Company of New York Variable Life Separate Account I,
and ReliaStar Life Insurance Company of New York have duly caused Pre-Effective
Amendment No. 2 to this Registration Statement to be signed on their behalf by
the undersigned, thereunto duly authorized, and their seal to be hereunto
affixed and attested, all in the City of Minneapolis, and in the State of
Minnesota on the 27th day of April, 2001.

RELIASTAR LIFE INSURANCE COMPANY OF
NEW YORK
VARIABLE LIFE SEPARATE ACCOUNT I
(Registrant)

By: RELIASTAR LIFE INSURANCE
COMPANY OF NEW YORK
(Depositor)

By: /s/ ROBERT C. SALIPANTE
------------------------------------
Robert C. Salipante
Vice Chairman and Director

(Seal)

ATTEST:

/s/ LORALEE A. RENELT
- --------------------------------------
Loralee A. Renelt
RELIASTAR LIFE INSURANCE COMPANY OF
NEW YORK
(Depositor)
By: /s/ ROBERT C. SALIPANTE
------------------------------------
Robert C. Salipante
Vice Chairman and Director

(Seal)

ATTEST:

/s/ LORALEE A. RENELT
- --------------------------------------
Loralee A. Renelt

II-5
114

Pursuant to the requirements of the Securities Act of 1933, Pre-Effective
Amendment No. 2 to this Registration Statement has been signed below by the
following persons in the capacities with Reliastar Life Insurance Company of New
York and on the date indicated.

SIGNATURE TITLE DATE
--------- ----- ----

/s/ JOHN G. TURNER* Chairman and Director April 27, 2001
- ------------------------------------------------
John G. Turner

/s/ JAMES R. GELDER* President, Chief Executive Officer April 27, 2001
- ------------------------------------------------ and Director
James R. Gelder

/s/ WILLIAM D. BONNEVILLE* Executive Vice President and Chief April 27, 2001
- ------------------------------------------------ Administrative Officer
William D. Bonneville

/s/ STEPHEN A. CARB* Director April 27, 2001
- ------------------------------------------------
Stephen A. Carb

/s/ PAULA CLUDRAY-ENGELKE* Secretary April 27, 2001
- ------------------------------------------------
Paula Cludray-Engelke

/s/ JAMES G. COCHRAN* Executive Vice President April 27, 2001
- ------------------------------------------------
James G. Cochran

/s/ R. MICHAEL CONLEY* Director April 27, 2001
- ------------------------------------------------
R. Michael Conley

/s/ RICHARD R. CROWL* Senior Vice President, General April 27, 2001
- ------------------------------------------------ Counsel, and Director
Richard R. Crowl

/s/ AMBASSADOR ULRIC HAYNES, JR.* Director April 27, 2001
- ------------------------------------------------
Ambassador Ulric Haynes, Jr.

/s/ WAYNE R. HUNEKE* Vice President, Chief Financial April 27, 2001
- ------------------------------------------------ Officer and Director
Wayne R. Huneke

/s/ MARK S. JORDAHL* Vice President, Chief Investment April 27, 2001
- ------------------------------------------------ Officer, and Director
Mark S. Jordahl

/s/ KENNETH U. KUK* Director April 27, 2001
- ------------------------------------------------
Kenneth U. Kuk

/s/ JAMES R. MILLER* Vice President, Controller and April 27, 2001
- ------------------------------------------------ Director
James R. Miller

/s/ DAVID S. PENDERGRASS Vice President and Treasurer April 27, 2001
- ------------------------------------------------
David S. Pendergrass

/s/ FIORAVANTE G. PERROTTA* Director April 27, 2001
- ------------------------------------------------
Fioravante G. Perrotta

/s/ RODGER D. ROSENFELDT* Executive Vice President, Chief April 27, 2001
- ------------------------------------------------ Operating Officer and Director
Rodger D. Rosenfeldt

/s/ CHARLES B. UPDIKE* Director April 27, 2001
- ------------------------------------------------
Charles B. Updike

/s/ ROSS M. WEALE* Director April 27, 2001
- ------------------------------------------------
Ross M. Weale

*By: /s/ MICHAEL S. FISCHER Attorney-in-Fact pursuant to Power of Attorney dated
------------------------------------------- March 2001, for the above named Officers and
Michael S. Fischer Directors.

II-6
115

INDEX TO EXHIBITS

EX-99.2. Opinion and consent of Michael S. Fischer, Esquire, as to
the legality of the Securities being registered.
EX-99.C1. Independent Auditors' Consents
EX.99-C6. Actuarial Opinion and Consent
EX.99-D1. Memorandum for Procedures for Purchase, Redemption,
Transfer, and Conversion
(1)(5)(a) Revised Form of Policy