As filed pursuant to Rule 424(b)(3) under
the Securities Act of 1933
Registration No. 333-65953
AIG SUNAMERICA LIFE ASSURANCE COMPANY
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VARIABLE SEPARATE ACCOUNT
SUPPLEMENT TO THE
AMERICAN PATHWAY II VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARIS VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARIS II VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARISAMERICA VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARIS PLATINUM II VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARIS PROTECTOR VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARIS ADVISOR VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
POLARIS CHOICE II VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
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VARIABLE ANNUITY ACCOUNT ONE
SUPPLEMENT TO THE
ANCHOR ICAP II VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
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VARIABLE ANNUITY ACCOUNT TWO
SUPPLEMENT TO THE
VISTA CAPITAL ADVANTAGE VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
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VARIABLE ANNUITY ACCOUNT FOUR
SUPPLEMENT TO THE
ANCHOR ADVISOR VARIABLE ANNUITY PROSPECTUS DATED MAY 3, 2004
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VARIABLE ANNUITY ACCOUNT FIVE
SUPPLEMENT TO THE
SEASONS VARIABLE ANNUITY PROSPECTUS DATED AUGUST 2, 2004
SEASONS SELECT II VARIABLE ANNUITY PROSPECTUS DATED AUGUST 2, 2004
SEASONS SELECT VARIABLE ANNUITY PROSPECTUS DATED AUGUST 2, 2004
SEASONS TRIPLE ELITE VARIABLE ANNUITY PROSPECTUS DATED AUGUST 2, 2004
SEASONS ADVISOR II VARIABLE ANNUITY PROSPECTUS DATED AUGUST 2, 2004
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VARIABLE ANNUITY ACCOUNT SEVEN
SUPPLEMENT TO THE
POLARIS PLUS VARIABLE ANNUITY PROSPECTUS DATED AUGUST 30, 2004
POLARIS II A-CLASS VARIABLE ANNUITY PROSPECTUS DATED AUGUST 30, 2004
POLARIS II ASSET MANAGER VARIABLE ANNUITY PROSPECTUS DATED AUGUST 30, 2004
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The following replaces the paragraph under the heading titled LEGAL PROCEEDINGS
located in the OTHER INFORMATION section of the prospectus:
AIG SunAmerica Life engages in various kinds of routine litigation. In
management's opinion, these matters are not material in relation to the
financial position of the Company with the exception of the matters disclosed
below.
A purported class action captioned NIKITA Mehta, as Trustee of the N.D. Mehta
Living Trust vs. AIG SunAmerica Life Assurance Company, Case 04L0199, filed on
April 5, 2004 in the Circuit Court, Twentieth Judicial District in St. Clair
County, Illinois. The lawsuit alleges certain improprieties in conjunction with
alleged market timing activities. The probability of any particular outcome
cannot be reasonably estimated at this time.
On November 23, 2004, American International Group, Inc. (AIG), the parent
company and affiliated person of AIG SunAmerica Life Assurance Company
("Depositor") and AIG SunAmerica Capital Services, Inc. ("Distributor"),
consented to the settlement of an injunctive action instituted by the SEC. In
its complaint, the Securities and Exchange Commission (SEC) alleged that AIG
violated Section 10(b) of the Securities Exchange Act of 1934, as amended
(Exchange Act) and Rule 10b-5 promulgated thereunder and Section 17(a) of the
Securities Act of 1933 (Securities Act) and aided and abetted violations of
Sections 13(a) and 13(b)(2)(A) of the Exchange Act and Rules 12b-20, 13a-1, and
13a-13 promulgated thereunder, in connection with certain structured
transactions between subsidiaries of The PNC Financial Services Group, Inc. and
certain subsidiaries of AIG, and similar transactions marketed by certain
subsidiaries of AIG to other publicly traded companies. The conduct described in
the complaint did not involve any conduct of AIG or its
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affiliates related to their investment advisory, depository or distribution
activities. Pursuant to a final judgment entered on December 7, 2004, AIG,
without admitting or denying the allegations in the complaint (except as to
jurisdiction), was ordered to pay approximately $46 million in disgorgement,
penalties and prejudgment interest.
In addition, the final judgment enjoins AIG from future violation of the
above-referenced provisions of the federal securities laws. Absent exemptive
relief granted by the SEC, the entry of the injunction would prohibit AIG and,
its affiliated persons, from, among other things, serving as an investment
advisor or depositor of any registered investment management company or
principal underwriter for any registered open-end investment company pursuant to
Section 9(a) of the Investment Company Act of 1940, as amended (the "1940 Act").
Certain affiliated persons of AIG, including the Depositor and Distributor,
received a temporary exemptive order from the SEC pursuant to Section 9(c) of
the 1940 Act on December 8, 2004 with respect to the entry of the injunction,
granting exemptive relief from the provisions of Section 9(a) of the 1940 Act.
The temporary order permits AIG and its affiliated persons to serve as
investment adviser, subadviser, depositor, principal underwriter or sponsor of
the separate accounts through which your variable annuity is funded ("Separate
Accounts"). The Depositor and Distributor expect that a permanent exemptive
order will be granted, although there is no assurance the SEC will issue the
permanent order.
Additionally, AIG and AIG Financial Products Corp. (AIG-FP), a subsidiary of
AIG, reached a similar settlement with the Fraud Section of the United States
Department of Justice (DOJ). The settlement with the DOJ consists of an
agreement with respect to AIG and AIG-FP and a complaint and deferred
prosecution agreement with AIG-FP PAGIC Equity Holding Corp. (a special purpose
entity) that will foreclose future prosecutions, provided that the companies
comply with the agreements. As part of the settlement, AIG-FP will pay a penalty
of $80 million to the DOJ.
The Depositor believes that the disgorgement and penalties are not likely to
have a material adverse effect on the Separate Accounts. Nor does the
Distributor believe that the disgorgement and penalties will materially affect
its ability to perform distribution services relating to the Separate Accounts.
Date: December 16, 2004
Please keep this Supplement with your Prospectus
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