As filed with the Securities and Exchange Commission on July 18, 2003
Registration No. 333-103504
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------
POST-EFFECTIVE AMENDMENT NO. 2 ON
FORM S-3
UNDER
THE SECURITIES ACT OF 1933
--------------------
AIG SUNAMERICA LIFE ASSURANCE COMPANY
(FORMERLY KNOWN AS ANCHOR NATIONAL LIFE INSURANCE COMPANY)
("AIG SUNAMERICA LIFE")
(Exact name of registrant as specified in its charter)
California 6311 86-0198983
(State or other (Primary Standard (I.R.S. Employer
jurisdiction of Industrial Classification Identification No.)
incorporation or Number)
organization)
AIG SunAmerica Life
1 SunAmerica Center
Los Angeles, California 90067-6022
(310) 772-6000
(Address, including zip code, and telephone number,
including area code, or registrant's
principal executive offices)
Christine A. Nixon, Esquire
AIG SunAmerica Life
1 SunAmerica Center
Los Angeles, California 90067-6022
(310) 772-6000
(Name, address, including zip code, and telephone number, including area code
of agent for service)
----------------------
Approximate date of commencement of proposed dale to the public: As
soon after the effective date of this Registration Statement as is practicable.
If the only securities being registered on this form are to be offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]
If any of the securities being registered on this form are to be
offered on a delayed or continuous basis pursuant to Rule 415 under the
Securities Act of 1933, other than securities offered only in connection with
dividend or interest reinvestment plans, check the following box. [X]
If this form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following
box and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ] ______________
If this form is a post-effective amendment filed pursuant to Rule
462(c) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective
registration statement for the same offering. [ ] ______________
If delivery of the prospectus is expected to be made pursuant to Rule
434, please check the following box. [ ]
----------------------
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),
shall determine.
Registrant is filing this Post-Effective Amendment No. 2 to make certain
changes to the Registration Statement. Pursuant to oral permission to do so
provided by Assistant Director William Kotapish to AIG SunAmerica Life Assurance
Company, this Registration Statement contains multiple prospectuses with the
substantially similar MVA feature. The Registrant does not intend for this
Post-Effective Amendment No. 2 to delete from the Registration Statement, any
document included in the Registration Statement but not filed herein, including
any currently effective Prospectus or supplement thereto.
[Seasons Triple Elite Logo]
PROSPECTUS
July 29, 2003
ALLOCATED FIXED AND VARIABLE GROUP ANNUITY
issued by
VARIABLE ANNUITY ACCOUNT FIVE
and
AIG SUNAMERICA LIFE ASSURANCE COMPANY
The annuity contract has a variety of investment choices - available fixed
investment options which offer interest rates guaranteed by AIG SunAmerica Life
Assurance Company for different periods of time, SELECT PORTFOLIOS, FOCUSED
PORTFOLIOS and SEASONS STRATEGIES:
<Table>
SELECT PORTFOLIOS FOCUSED PORTFOLIOS SEASONS STRATEGIES
LARGE CAP GROWTH FOCUS GROWTH GROWTH
LARGE CAP COMPOSITE FOCUS GROWTH AND INCOME MODERATE GROWTH
LARGE CAP VALUE FOCUS VALUE BALANCED GROWTH
MID CAP GROWTH FOCUS TECHNET CONSERVATIVE GROWTH
MID CAP VALUE
SMALL CAP
INTERNATIONAL EQUITY
DIVERSIFIED FIXED INCOME
CASH MANAGEMENT
</Table>
all of which invest in the underlying portfolios of
SEASONS SERIES TRUST
which is managed by:
<Table>
SELECT PORTFOLIOS FOCUSED PORTFOLIOS SEASONS STRATEGIES
AIG GLOBAL INVESTMENT CORP. AMERICAN CENTURY INVESTMENT JANUS CAPITAL CORPORATION
AIG SUNAMERICA ASSET MANAGEMENT CORP. MANAGEMENT, INC. PUTNAM INVESTMENT MANAGEMENT, L.L.C.
GOLDMAN SACHS ASSET MANAGEMENT DRESDNER RCM GLOBAL SUNAMERICA ASSET MANAGEMENT CORP.
GOLDMAN SACHS ASSET MANAGEMENT INT'L INVESTORS LLC T. ROWE PRICE ASSOCIATES, INC.
JANUS CAPITAL CORPORATION FRED ALGER MANAGEMENT, INC. WELLINGTON MANAGEMENT COMPANY, LLP
LORD ABBETT & CO. HARRIS ASSOCIATES L.P.
T. ROWE PRICE ASSOCIATES, INC. J.P. MORGAN INVESTMENT
WELLINGTON MANAGEMENT COMPANY, LLP MANAGEMENT INC.
MARSICO CAPITAL
MANAGEMENT, LLC
SALOMON BROTHERS ASSET
MANAGEMENT
SUNAMERICA ASSET
MANAGEMENT CORP.
THIRD AVENUE FUNDS
VANWAGONER CAPITAL
MANAGEMENT INC.
</Table>
You can put your money into any one or all of the SELECT PORTFOLIOS, FOCUSED
PORTFOLIOS, and SEASONS STRATEGIES and/or fixed investment options.
Please read this prospectus carefully before investing and keep it for your
future reference. It contains important information you should know about the
Seasons Triple Elite Variable Annuity.
To learn more about the annuity offered by this prospectus, you can obtain a
copy of the Statement of Additional Information ("SAI") dated July 29, 2003. The
SAI has been filed with the Securities and Exchange Commission ("SEC") and can
be considered part of this prospectus.
The table of contents of the SAI appears below in this prospectus. For a free
copy of the SAI, call Us at 800/445-SUN2 or write Our Annuity Service Center at,
P.O. Box 54299, Los Angeles, California 90054-0299.
A registration statement has been filed with the SEC under the Securities Act of
1933 relating to the contract. This prospectus does not contain all the
information in the registration statement as permitted by SEC regulations. The
omitted information can be obtained from the SEC's principal office in
Washington, D.C., upon payment of a prescribed fee.
In addition, the SEC maintains a website (http://www.sec.gov) that contains the
SAI, materials incorporated by reference and other information filed
electronically with the SEC.
ANNUITIES INVOLVE RISK, INCLUDING POSSIBLE LOSS OF PRINCIPAL, AND ARE NOT A
DEPOSIT OR OBLIGATION OF, OR GUARANTEED OR ENDORSED BY, ANY BANK. THEY ARE NOT
FEDERALLY INSURED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION, THE FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY
OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Anchor National Life Insurance Company changed its name to AIG SunAmerica Life
Assurance Company ("AIG SunAmerica Life" also referred to herein as "We", "Us"
or "Ours") on March 1, 2003. Please keep in mind, this is a name change only and
will not affect the substance of your contract.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
AIG SunAmerica Life's Annual Report on Form 10-K for the year ended December 31,
2002, and its quarterly report on Form 10-Q for the quarter ended March 31, 2003
are incorporated herein by reference.
All documents or reports filed by AIG SunAmerica Life under Section 13(a),
13(c), 14 or 15(d) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act") after the effective date of this prospectus are also
incorporated by reference. Statements contained in this prospectus and
subsequently filed documents which are incorporated by reference or deemed to be
incorporated by reference are deemed to modify or supersede documents
incorporated herein by reference.
AIG SunAmerica Life files its Exchange Act documents and reports, including its
annual and quarterly reports on Form 10-K and Form 10-Q, electronically pursuant
to EDGAR under CIK No. 0000006342.
AIG SunAmerica Life is subject to the informational requirements of the
Securities and Exchange Act of 1934 (as amended). We file reports and other
information with the SEC to meet those requirements. You can inspect and copy
this information at SEC public facilities at the following locations:
WASHINGTON, DISTRICT OF COLUMBIA
450 Fifth Street, N.W., Room 1024
Washington, D.C. 20549
CHICAGO, ILLINOIS
500 West Madison Street
Chicago, IL 60661
NEW YORK, NEW YORK
233 Broadway
New York, NY 10048
To obtain copies by mail, contact the Washington, D.C. location. After you pay
the fees as prescribed by the rules and regulations of the SEC, the required
documents are mailed.
Registration statements under the Securities Act of 1933, as amended, related to
the contracts offered by this prospectus are on file with the SEC. This
prospectus does not contain all of the information contained in the registration
statements and exhibits. For further information regarding the separate account,
AIG SunAmerica Life and its general account, the VARIABLE PORTFOLIOS and the
contract, please refer to the registration statements and exhibits.
The SEC also maintains a website (http:// www.sec.gov) that contains the SAI,
materials incorporated by reference and other information filed electronically
with the SEC by AIG SunAmerica Life.
AIG SunAmerica Life will provide without charge to each person to whom this
prospectus is delivered, upon written or oral request, a copy of the documents
incorporated by reference. Requests for these documents should be directed to
AIG SunAmerica Life's Annuity Service Center, as follows:
AIG SunAmerica Life
Annuity Service Center
P.O. Box 54299
Los Angeles, California 90054-0299
Telephone Number: (800) 445-SUN2
SECURITIES AND EXCHANGE COMMISSION POSITION ON INDEMNIFICATION
Indemnification for liabilities arising under the Securities Act of 1933 (the
"Act") is provided to AIG SunAmerica Life's officers, directors and controlling
persons. The SEC has advised that it believes such indemnification is against
public policy under the Act and unenforceable. If a claim for indemnification
against such liabilities (other than for AIG SunAmerica Life's payment of
expenses incurred or paid by its directors, officers or controlling persons in
the successful defense of any legal action) is asserted by a director, officer
or controlling person of AIG SunAmerica Life in connection with the securities
registered under this prospectus, AIG SunAmerica Life will submit to a court
with jurisdiction to determine whether the indemnification is against public
policy under the Act. AIG SunAmerica Life will be governed by final judgment of
the issue. However, if in the opinion of AIG SunAmerica Life's counsel this
issue has been determined by controlling precedent, AIG SunAmerica Life will not
submit the issue to a court for determination.
2
TABLE OF CONTENTS
<Table>
GLOSSARY.................................................... 4
HIGHLIGHTS.................................................. 5
FEE TABLES.................................................. 6
Maximum Owner Transaction Expenses....................... 6
Transfer Fee............................................. 6
Contract Maintenance Fee................................. 6
Separate Account Annual Expenses......................... 6
Mortality and Expense Risk Fees......................
Distribution Expense Charge..........................
Optional Seasons Estate Advantage Death Benefit
Fee.................................................. 6
Optional Earnings Advantage Fee...................... 6
Optional Income Protector Fee............................ 6
Portfolio Expenses of VARIABLE PORTFOLIOS................ 6
MAXIMUM AND MINIMUM EXPENSE EXAMPLES........................ 7
THE SEASONS TRIPLE ELITE VARIABLE ANNUITY................... 8
PURCHASING A SEASONS TRIPLE ELITE VARIABLE ANNUITY.......... 9
Allocation of Purchase Payments.......................... 9
Accumulation Units....................................... 9
Free Look................................................ 10
Exchange Offers.......................................... 10
INVESTMENT OPTIONS.......................................... 10
Variable Investment Options.............................. 11
The SELECT AND FOCUSED PORTFOLIOS...................... 11
SELECT AND FOCUSED PORTFOLIO Operation................. 11
The SEASONS STRATEGIES................................. 12
SEASONS STRATEGY Rebalancing........................... 12
Fixed Investment Options................................. 14
Dollar Cost Averaging Fixed Accounts..................... 14
Transfers During the Accumulation Phase.................. 15
Dollar Cost Averaging Program............................ 16
Asset Allocation Rebalancing Program..................... 17
Principal Advantage Program.............................. 17
Voting Rights............................................ 17
Substitution............................................. 17
ACCESS TO YOUR MONEY........................................ 18
Free Withdrawal Provision................................ 18
Systematic Withdrawal Program............................ 19
Minimum Contract Value................................... 20
Qualified Contract Owners................................ 20
DEATH BENEFIT............................................... 20
Standard Death Benefit................................... 21
Seasons Estate Advantage Death Benefit(s)................ 21
Earnings Advantage Spousal Continuation.................. 23
EXPENSES.................................................... 24
Separate Account Charges................................. 24
Withdrawal Charges....................................... 24
Investment Charges....................................... 24
Contract Maintenance Fee................................. 25
Transfer Fee............................................. 25
Optional Seasons Estate Advantage Fee.................... 25
Optional Earnings Advantage Fee.......................... 25
Optional Income Protector Fee............................ 25
Premium Tax.............................................. 25
Income Taxes............................................. 25
Reduction or Elimination of Charges and Expenses, and
Additional Amounts Credited............................ 25
INCOME OPTIONS.............................................. 26
Annuity Date............................................. 26
Income Options........................................... 26
Allocation of Annuity Payments........................... 27
Transfers During the Income Phase........................ 28
Deferment of Payments.................................... 28
Income Protector......................................... 28
TAXES....................................................... 30
Annuity Contracts in General............................. 31
Tax Treatment of Distributions--Non-qualified
Contracts.............................................. 31
Tax Treatment of Distributions--Qualified Contracts...... 31
Minimum Distributions.................................... 32
Tax Treatment of Death Benefits.......................... 32
Contracts Owned by a Trust or Corporation................ 33
Gifts, Pledges and/or Assignments of a Non-qualified
Contract............................................... 33
Diversification and Investor Control..................... 33
PERFORMANCE................................................. 33
OTHER INFORMATION........................................... 34
AIG SunAmerica Life...................................... 34
The Separate Account..................................... 34
The General Account...................................... 34
Distribution of the Contract............................. 34
Administration........................................... 35
Legal Proceedings........................................ 35
Ownership................................................ 35
Independent Accountants.................................. 35
Registration Statement................................... 36
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION.... 37
APPENDIX A--MARKET VALUE ADJUSTMENT ("MVA")................. A-1
APPENDIX B--DEATH BENEFITS FOLLOWING SPOUSAL CONTINUATION... B-1
APPENDIX C--HYPOTHETICAL EXAMPLE OF THE OPERATION OF THE
INCOME PROTECTOR........................................... C-1
APPENDIX D--CONDENSED FINANCIAL INFORMATION................. D-1
</Table>
3
GLOSSARY
We have capitalized some of the technical terms used in this prospectus. To help
you understand these terms, We define them in this glossary.
ACCUMULATION PHASE--The period during which you invest money in your contract.
ACCUMULATION UNITS--A measurement We use to calculate the value of the variable
portion of your contract during the Accumulation Phase.
ANNUITANT(S)--The person(s) on whose life (lives) We base annuity payments.
ANNUITY DATE--The date on which annuity payments are to begin, as selected by
you.
ANNUITY UNITS--A measurement We use to calculate the amount of annuity payments
you receive from the variable portion of your contract during the Income Phase.
BENEFICIARY(IES)--The person(s) designated to receive any benefits under the
contract if you or the Annuitant dies.
COMPANY--AIG SunAmerica Life Assurance Company, We, Us, the issuer of this
annuity contract.
INCOME PHASE--The period during which We make annuity payments to you.
IRS--The Internal Revenue Service.
LATEST ANNUITY DATE--Your 95th birthday or 10th contract anniversary whichever
is later.
NON-QUALIFIED (CONTRACT)--A contract purchased with after-tax dollars. In
general, these contracts are not under any pension plan, specially sponsored
program or individual retirement account ("IRA").
SELECT OR FOCUSED PORTFOLIO(S)--A sub-account of Variable Annuity Account Five
which provides for the variable investment options available under the contract.
Each SELECT and FOCUSED PORTFOLIO has a distinct investment objective and is
invested in the underlying investment portfolios of the Seasons Series Trust.
This investment option allocates assets to an underlying fund in which a portion
of the assets is managed by three different advisors.
PURCHASE PAYMENTS--The money you give Us to buy the contract, as well as any
additional money you give Us to invest in the contract after you own it.
QUALIFIED (CONTRACT)--A contract purchased with pretax dollars. These contracts
are generally purchased under a pension plan, specially sponsored program or
individual retirement account ("IRA").
SEASONS STRATEGY(IES)--A sub-account of Variable Annuity Account Five which
provides for the variable investment options available under the contract. Each
SEASONS STRATEGY has its own investment objective and is invested in the
underlying investment portfolios of the Seasons Series Trust. This investment
option allocates assets to three out of six available portfolios, each of which
is managed by a different investment advisor.
VARIABLE PORTFOLIO(S)--Refers collectively to the SELECT PORTFOLIOS, FOCUSED
PORTFOLIOS and/or SEASONS STRATEGIES.
4
HIGHLIGHTS
- --------------------------------------------------------------------------------
The Seasons Triple Elite Variable Annuity is a contract between you and AIG
SunAmerica Life. It is designed to help you invest on a tax-deferred basis and
meet long-term financial goals. There are minimum Purchase Payment amounts
required to purchase a contract. Purchase Payments may be invested in the SELECT
PORTFOLIOS, FOCUSED PORTFOLIOS and/or pre-allocated SEASONS STRATEGIES
("VARIABLE PORTFOLIOS") and fixed account options. Like all deferred annuities,
the contract has an Accumulation Phase and an Income Phase. During the
Accumulation Phase, you invest money in your contract. The Income Phase begins
when you start receiving income payments from your annuity to provide for your
retirement.
FREE LOOK: You may cancel your contract within 10 days after receiving it (or
whatever period is required in your state), We will cancel the contract without
charging a withdrawal charge. You will receive whatever your contract is worth
on the day that We receive your request. The amount refunded may be more or less
than your original Purchase Payment. We will return your original Purchase
Payment if required by law. See PURCHASING A SEASONS TRIPLE ELITE VARIABLE
ANNUITY in the prospectus.
EXPENSES: There are fees and charges associated with the contract. Each year, We
deduct a $35 contract maintenance fee from your contract, which may be waived
for contracts of $50,000 or more. We also deduct insurance charges, which equal
1.55% annually of the average daily value of your contract allocated to the
VARIABLE PORTFOLIOS. These are investment charges on amounts invested in the
VARIABLE PORTFOLIOS. If you elect optional features available under the contract
We may charge additional fees for these features. A separate withdrawal charge
schedule applies to each Purchase Payment. The amount of the withdrawal charge
declines over time. After a Purchase Payment has been made in the contract for
three complete years, withdrawal charges no longer apply to that portion of the
Purchase Payment. See the FEE TABLE, PURCHASING A SEASONS TRIPLE ELITE VARIABLE
ANNUITY and EXPENSES in the prospectus.
ACCESS TO YOUR MONEY: You may withdraw money from your contract during the
Accumulation Phase. If you do so, earnings are deemed to be withdrawn first. You
will pay income tax on earnings and untaxed contributions when you withdraw
them. Payment received during the Income Phase are considered partly a return of
your original investment. A federal tax penalty may apply if you make
withdrawals before age 59 1/2. As noted above, a withdrawal charge may apply.
See ACCESS TO YOUR MONEY and TAXES in the prospectus.
DEATH BENEFITS: A death benefit feature is available under the contract to
protect your Beneficiaries in the event of your death during the Accumulation
Phase. Optional enhanced death benefits are also available. See DEATH BENEFITS
in the prospectus.
INCOME OPTIONS: When you are ready to begin taking income, you can choose to
receive income payments on a variable basis, fixed basis or a combination of
both. You may also choose from five different options, including an option for
income that you cannot outlive. See INCOME OPTIONS in the prospectus.
Please read the prospectus carefully for more detailed information regarding
these and other features and benefits of the contract, as well as the risks of
investing.
INQUIRIES: If you have questions about your contract call your financial
representative or contact Us at AIG SunAmerica Life Annuity Service Center P.O.
Box 54299 Los Angeles, California 90054-0299. Telephone Number: (800) 445-SUN2.
AIG SUNAMERICA LIFE OFFERS SEVERAL DIFFERENT VARIABLE ANNUITY PRODUCTS TO MEET
THE DIVERSE NEEDS OF OUR INVESTORS. EACH PRODUCT MAY PROVIDE DIFFERENT FEATURES
AND BENEFITS OFFERED AT DIFFERENT FEES, CHARGES AND EXPENSES. WHEN WORKING WITH
YOUR FINANCIAL ADVISOR TO DETERMINE THE BEST PRODUCT TO MEET YOUR NEEDS YOU
SHOULD CONSIDER, AMONG OTHER THINGS, WHETHER THE FEATURES OF THIS CONTRACT AND
THE RELATED FEES PROVIDE THE MOST APPROPRIATE PACKAGE TO HELP MEET YOUR
LONG-TERM RETIREMENT SAVINGS GOALS.
Please read the prospectus carefully for more detailed information regarding
these and other features and benefits of the contract, as well as the risks of
investing.
5
FEE TABLES
- --------------------------------------------------------------------------------
THE FOLLOWING DESCRIBES THE FEES AND EXPENSES THAT YOU WILL PAY AT THE TIME THAT
YOU TRANSFER CASH VALUE BETWEEN INVESTMENT OPTIONS OR SURRENDER THE CONTRACT. IF
APPLICABLE, YOU MAY ALSO BE SUBJECT TO STATE PREMIUM TAXES.
MAXIMUM OWNER TRANSACTION EXPENSES
<Table>
MAXIMUM WITHDRAWAL CHARGES
(as a percentage of each Purchase Payment)(1)... 7%
</Table>
- ---------------
<Table>
(1) Withdrawal Charge Schedule
(as a percentage of each Purchase
Payment)
Years:............................... 1 2 3 4+
7% 6% 6% 0%
</Table>
TRANSFER FEE
No charge for the first 15 transfers each contract year; thereafter, the fee is
$25 ($10 in Pennsylvania and Texas) per transfer
THE FOLLOWING DESCRIBES THE FEES AND EXPENSES THAT YOU MAY PAY PERIODICALLY
DURING THE TIME THAT YOU OWN THE CONTRACT, NOT INCLUDING UNDERLYING PORTFOLIO
FEES AND EXPENSES, WHICH ARE OUTLINED IN THE NEXT SECTION.
CONTRACT MAINTENANCE FEE
$35 ($30 in North Dakota) waived if contract value $50,000 or more
SEPARATE ACCOUNT ANNUAL EXPENSES
(deducted daily as a percentage of your average daily net asset value)
<Table>
Mortality and Expense Risk Fees.............. 1.40%
Distribution Expense Charge.................. 0.15%
Optional Seasons Estate Advantage Fee(2)..... .25%
Optional Earnings Advantage Fee(3)........... .15%
-----
Total Separate Account Annual Expenses....... 1.95%
</Table>
- ---------------
(2) Seasons Estate Advantage, which offers a choice of two enhanced death
benefits and an Earnings Advantage benefit is optional and if elected, the
fee is an annualized charge that is deducted daily from your contract value.
(3) Earnings Advantage, an enhanced death benefit feature, which is described
more fully in the prospectus is optional and if elected, the fee is an
annualized charge that is deducted daily from daily net asset value. The
Earnings Advantage can only be elected if the Seasons Estate Advantage is
also elected.
OPTIONAL FEATURE FEES
You may elect the optional Income Protector feature described below.
OPTIONAL INCOME PROTECTOR FEE
<Table>
Annual Fee as a % of your Income Benefit
Base......................................... 0.10%
</Table>
The Income Protector is optional and if elected, the fee is deducted annually
from your contract value. The Income Benefit Base which is described more fully
in the prospectus is generally calculated by using your contract value on the
date of your effective enrollment in the program and then each subsequent
contract anniversary, adding purchase payments made since the prior contract
anniversary, less proportional withdrawals, and fees and charges applicable to
those withdrawals.
THE NEXT ITEM SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY
THE UNDERLYING PORTFOLIOS OF THE TRUST BEFORE ANY WAIVERS OR REIMBURSEMENTS.
MORE DETAIL CONCERNING THE TRUST'S FEES AND EXPENSES IS CONTAINED IN THE
PROSPECTUS FOR THE TRUST. PLEASE READ IT CAREFULLY BEFORE INVESTING.
PORTFOLIO EXPENSES
<Table>
<Caption>
TOTAL ANNUAL TRUST OPERATING EXPENSES MINIMUM MAXIMUM
- ------------------------------------- ------- -------
(expenses that are deducted from
underlying portfolios of the Trust,
including management fees, other
expenses and 12b-1 fees, if
applicable)....................... 1.01% 3.36%
</Table>
6
MAXIMUM AND MINIMUM EXPENSE EXAMPLES
- --------------------------------------------------------------------------------
These Examples are intended to help you compare the cost of investing in the
contract with the cost of investing in other variable annuity contracts. These
costs include owner transaction expenses, contract maintenance fees, separate
account annual expense, fees for optional features and expenses for the
underlying portfolios of the Trusts.
The Examples assume that you invest $10,000 in the contract for the time periods
indicated; that your investment has a 5% return each year; no withdrawals and
that the maximum and minimum fees and expenses of the underlying portfolios of
the Trust are reflected. Although your actual costs may be higher or lower,
based on these assumptions, your costs at the end of the stated period would be:
MAXIMUM EXPENSE EXAMPLES
(assuming maximum separate account annual expenses of 1.95%, including Seasons
Estate Advantage (with Earnings Advantage) and investment in an underlying
portfolio with total expenses of 3.36%)
(1) If you surrender your contract at the end of the applicable time period and
you elect the optional Seasons Estate Advantage (and Earnings Advantage) and
the Income Protector program with the following charges (0.40% and 0.10%
respectively):
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------ ------- ------- --------
$1,245 $2,227 $2,699 $5,336
</Table>
(2) If you do not surrender your contract and you elect the optional Seasons
Estate Advantage (with Earnings Advantage) and the Income Protector program
with the following charges (0.40% and 0.10% respectively):
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------ ------- ------- --------
$545 $1,627 $2,699 $5,336
</Table>
(3) If you annuitize your contract:
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------ ------- ------- --------
$491 $1,475 $2,461 $4,932
</Table>
MINIMUM EXPENSE EXAMPLES
(assuming minimum separate account annual expenses of 1.55% and investment in an
underlying portfolio with total expenses of 1.01%)
(1) If you surrender your contract at the end of the applicable time period and
you do not elect any optional features:
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------ ------- ------- --------
$964 $1,411 $1,385 $2,944
</Table>
(2) If you do not surrender your contract and you do not elect any optional
features:
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------ ------- ------- --------
$264 $811 $1,385 $2,944
</Table>
(3) If you annuitize your contract:
<Table>
<Caption>
1 YEAR 3 YEARS 5 YEARS 10 YEARS
- ------ ------- ------- --------
$259 $796 $1,360 $2,895
</Table>
EXPLANATION OF FEE TABLES AND EXAMPLES
1. The purpose of the Fee Tables is to show you the various expenses you will
incur directly and indirectly by investing in the contract. The Example
reflects owner transaction expenses, separate account expenses including
optional benefit fees in some examples and investment portfolio expenses by
VARIABLE PORTFOLIOS. We converted the contract administration charge to a
percentage (0.05%). The actual impact of the administration charge may differ
from this percentage and may be waived for contract values over $50,000.
Additional information on the portfolio company fees can be found in the
Trust prospectus located behind this prospectus.
2. In addition to the stated assumptions, the Examples also assume separate
account charges as indicated and that no transfer fees were imposed. Although
premium taxes may apply in certain states, they are not reflected in the
Examples.
3. Examples reflecting application of optional features and benefits use the
highest fees and charges at which those features are being offered.
4. THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.
7
THE SEASONS TRIPLE ELITE VARIABLE ANNUITY
- --------------------------------------------------------------------------------
An annuity is a contract between you and an insurance company. You are the owner
of the contract. The contract provides three main benefits:
- Tax Deferral: You do not pay taxes on your earnings from the annuity
until you withdraw them.
- Death Benefit: If you die during the Accumulation Phase, the insurance
company pays a death benefit to your Beneficiary.
- Guaranteed Income: If elected, you receive a stream of income for your
lifetime, or another available period you select.
Tax-qualified retirement plans (e.g., IRAs, 401(k) or 403(b) plans) defer
payment of taxes on earnings until withdrawn. If you are considering funding a
tax-qualified retirement plan with an annuity, you should know that an annuity
does not provide any additional tax deferral treatment of earnings beyond the
treatment provided by the tax-qualified retirement plan itself. However,
annuities do provide other features and benefits which may be valuable to you.
You should fully discuss this decision with your financial advisor.
This annuity was developed to help you contribute to your retirement savings.
This annuity works in two stages, the Accumulation Phase and the Income Phase.
Your contract is in the Accumulation Phase during the period when you make
payments into the contract. The Income Phase begins when you request Us to start
making payments to you out of the money accumulated in your contract.
The contract is called a "variable" annuity because it allows you to invest in
variable investment portfolios which We call VARIABLE PORTFOLIOS. The VARIABLE
PORTFOLIOS are similar to mutual funds, in that they have specific investment
objectives and their performance varies. You can gain or lose money if you
invest in these VARIABLE PORTFOLIOS. The amount of money you accumulate in your
contract depends on the performance of the VARIABLE PORTFOLIOS in which you
invest.
The contract also may offer fixed account options for varying time periods.
Fixed account options earn interest at a rate set and guaranteed by AIG
SunAmerica Life. If available and you allocate money to the fixed account
options, the amount of money that accumulates in your contract depends on the
total interest credited to the particular fixed account option(s) in which you
are invested.
For more information on VARIABLE PORTFOLIOS and fixed account options available
under this contract, SEE INVESTMENT OPTIONS BELOW.
AIG SunAmerica Life issues the Seasons Triple Elite Variable Annuity. When you
purchase a Seasons Triple Elite Variable Annuity, a contract exists between you
and AIG SunAmerica Life. The Company is a stock life insurance company organized
under the laws of the state of Arizona. Its principal place of business is 1
SunAmerica Center, Los Angeles, California 90067. The Company conducts life
insurance and annuity business in the District of Columbia and all states except
New York. AIG SunAmerica Life is an indirect, wholly owned subsidiary of
American International Group, Inc., a Delaware corporation. Seasons Triple Elite
Variable Annuity may not currently be available in all states. Please check with
your financial advisor regarding availability in your state.
This annuity is designed for investors whose personal circumstances allow for a
long-term investment time horizon, to assist in contributing to retirement
savings. As a function of the Internal Revenue Code ("IRC"), you may be assessed
a 10% federal tax penalty on any withdrawal made prior to your reaching age
59 1/2. Additionally, this contract provides that you will be charged a
withdrawal charge on each Purchase Payment withdrawn if that Purchase Payment
has not been invested in this contract for at least 3 years. Because of the
potential penalty, you should fully discuss all of the benefits and risks of
this contract with your financial adviser prior to purchase.
8
PURCHASING A SEASONS TRIPLE ELITE
VARIABLE ANNUITY
- --------------------------------------------------------------------------------
An initial Purchase Payment is the money you give Us to buy a contract. Any
additional money you give Us to invest in the contract after purchase is a
subsequent Purchase Payment.
This chart shows the minimum initial and subsequent Purchase Payments permitted
under your contract. These amounts depend upon whether a contract is Qualified
or Non-qualified for tax purposes.
<Table>
<Caption>
MINIMUM
SUBSEQUENT MINIMUM SUBSEQUENT
MINIMUM INITIAL PURCHASE PURCHASE PAYMENT--
PURCHASE PAYMENT PAYMENT-- AUTOMATIC PAYMENT PLAN
---------------- ---------------- ----------------------
Qualified $ 2,000 $ 250 $100
Non-qualified $ 10,000 $ 500 $100
</Table>
We reserve the right to require Company approval prior to accepting Purchase
Payments greater than $1,000,000. For contracts owned by a non-natural owner, We
reserve the right to require prior Company approval to accept Purchase Payments
greater than $250,000. Subsequent Purchase Payments that would cause total
Purchase Payments in all contracts issued by AIG SunAmerica Life and First
SunAmerica Life Insurance Company, an affiliate of AIG SunAmerica Life, to the
same owner to exceed these limits may also be subject to Company pre-approval.
We reserve the right to change the amount at which pre-approval is required, at
any time. Once you have contributed at least the minimum initial Purchase
Payment, you can establish an automatic payment plan that allows you to make
subsequent Purchase Payments of as little as $100.
In general, We will not issue a Qualified contract to anyone who is age 70 1/2
or older, unless they certify to Us that the minimum distribution required by
the federal tax code is being made. In addition, We may not issue a contract to
anyone age 91 or older. Neither Seasons Estate Advantage nor Earnings Advantage
is available to you if you are age 81 or older at the time of contract issue.
We allow spouses to jointly own this contract. However, the age of the older
spouse is used to determine the availability of any age driven benefits. The
addition of a joint owner after the contract has been issued in contingent upon
prior review and approval by the Company.
ALLOCATION OF PURCHASE PAYMENTS
We invest your Purchase Payments in the fixed accounts, VARIABLE PORTFOLIOS
according to your instructions. If We receive a Purchase Payment without
allocation instructions, We will invest the money according to your last
allocation instructions. Purchase Payments are applied to your contract based
upon the value of the variable investment option next determined after receipt
of your money. SEE INVESTMENT OPTIONS BELOW.
In order to issue your contract, We must receive your completed application
and/or Purchase Payment allocation instructions and any other required paper
work at Our Annuity Service Center. We allocate your initial Purchase Payment
within two days of receiving it. If We do not have complete information
necessary to issue your contract, We will contact you. If We do not have the
information necessary to issue your contract within 5 business days We will:
- Send your money back to you; or
- Ask your permission to keep your money until We get the information
necessary to issue the contract.
ACCUMULATION UNITS
The value of the variable portion of your contract will go up or down depending
upon the investment performance of the VARIABLE PORTFOLIOS you select. In order
to keep track of the value of your contract, We use a unit of measure called an
Accumulation Unit which works like a share of a mutual fund. During the Income
Phase, We call them Annuity Units.
An Accumulation Unit value is determined each day that the New York Stock
Exchange ("NYSE") is open. We base the number of units you receive on the unit
value of the variable investment option as of the date We receive
9
your money, if We receive it before 1:00 p.m. Pacific Time (PT) and on the next
day's unit value if We receive your money after 1:00 p.m. PT. We calculate an
Accumulation Unit for each VARIABLE PORTFOLIOS after the NYSE closes each day.
We do this by:
1. determining the total value of money invested in a particular VARIABLE
PORTFOLIO;
2. subtracting from that amount any asset-based charges and any other
charges such as taxes We have deducted; and
3. dividing this amount by the number of outstanding Accumulation Units.
EXAMPLE:
We receive a $25,000 Purchase Payment from you on Wednesday. You allocate
the money to the Focus Growth Portfolio. We determine that the value of an
Accumulation Unit for the Focus Growth Portfolio is $11.10 when the NYSE
closes on Wednesday. We then divide $25,000 by $11.10 and credit your
contract on Wednesday night with 2,252.2523 Accumulation Units for the
Focus Growth Portfolio.
FREE LOOK
You may cancel your contract within ten days after receiving it (or longer if
required by state law). We call this a "free look." To cancel, you must mail the
contract along with your free look request to Our Annuity Service Center at P.O.
Box 54299, Los Angeles, California 90054-0299.
If you decide to cancel your contract during the free look period, generally, We
will refund to you the value of your contract on the day We receive your
request. The amount refunded to you may be more or less than your original
investment.
Certain states require Us to return your Purchase Payments upon a free look
request. Additionally, all contracts issued as an IRA require the full return of
Purchase Payments upon a free look. With respect to those contracts, We reserve
the right to put your money in the Cash Management investment option during the
free look period and will allocate your money according to your instructions at
the end of the applicable free look period. Currently, We do not put your money
in the Cash Management investment option during the free look period unless you
allocate your money to it. If your contract was issued in a state requiring
return of Purchase Payments or as an IRA and you cancel your contract during the
free look period, We return the greater of (1) your Purchase Payments; or (2)
the value of your contract. At the end of the free look period, We allocate your
money according to your instructions.
EXCHANGE OFFERS
From time to time, We may offer to allow you to exchange an older variable
annuity issued by AIG SunAmerica Life or one of its affiliates, for a newer
product with more current features and benefits, also issued by AIG SunAmerica
Life or one of its affiliates. Such an Exchange Offer will be made in accordance
with the applicable state and federal securities and insurance rules and
regulations. We will explain the specific terms and conditions of any such
Exchange Offer at the time the offer is made.
INVESTMENT OPTIONS
- --------------------------------------------------------------------------------
The contract offers variable investment options which We call VARIABLE
PORTFOLIOS, and fixed investment options. We designed the contract to meet your
varying investment needs over time. You can achieve this by using the VARIABLE
PORTFOLIOS alone or in concert with the fixed investment options. The VARIABLE
PORTFOLIOS are only available through the purchase of certain insurance
contracts. A mixture of your investment in the VARIABLE PORTFOLIOS and fixed
account options may lower the risk associated with investing only in a variable
investment option.
10
VARIABLE INVESTMENT OPTIONS
Each of the variable investment options of the contract invests in underlying
portfolios of Seasons Series Trust. AIG SAAMCo, an affiliate of AIG SunAmerica
Life, manages Seasons Series Trust. AIG SAAMCo has engaged sub-advisers to
provide investment advice for certain of the underlying investment portfolios.
YOU SHOULD READ THE PROSPECTUS FOR THE SEASONS SERIES TRUST CAREFULLY BEFORE
INVESTING. THE TRUST PROSPECTUS WHICH IS ATTACHED HERETO CONTAINS DETAILED
INFORMATION ABOUT THE UNDERLYING INVESTMENT PORTFOLIOS INCLUDING INVESTMENT
OBJECTIVE AND RISK FACTORS.
THE SELECT AND FOCUSED PORTFOLIOS
The contract offers nine SELECT PORTFOLIOS, each with a distinct investment
objective, utilizing a disciplined investing style to achieve its objective.
Each SELECT PORTFOLIO invests in an underlying investment portfolio of the
Seasons Series Trust. Except for the Cash Management portfolio, each underlying
portfolio is multi-managed by a team of three money managers. One component of
the underlying portfolios is an unmanaged component that tracks a particular
target index or subset of an index. The other two components are actively
managed. The unmanaged component of each underlying portfolio is intended to
balance some of the risks associated with an actively traded portfolio.
The contract also currently offers four FOCUSED PORTFOLIOS. Each multi-managed
FOCUSED PORTFOLIO offers you at least three different professional managers, one
of which may be AIG SAAMCo, and each of which advises a separate portion of the
FOCUSED PORTFOLIO. Each manager actively selects a limited number of stocks that
represent their best stock selections. This approach to investing results in a
more concentrated portfolio, which will be less diversified than the SELECT
PORTFOLIOS, and may be subject to greater market risks.
Each SELECT AND FOCUSED PORTFOLIO and the respective managers are:
<Table>
SELECT PORTFOLIOS FOCUSED PORTFOLIOS
LARGE CAP GROWTH MID CAP GROWTH INTERNATIONAL EQUITY FOCUS GROWTH
AIG Global AIGGIC AIGGIC Fred Alger Management,
Investment Corp. T. Rowe Price GSAM-Int'l Inc. ("Alger")
("AIGGIC") Wellington Lord Abbett Marsico Capital
Goldman Sachs Asset Management Management, LLC
Management ("GSAM") DIVERSIFIED FIXED INCOME ("Marsico")
Janus Capital MID CAP VALUE AIGGIC Salomon Brothers Asset
Corporation AIGGIC AIG SAAMCo Management ("Salomon")
("Janus") GSAM Wellington Management
Lord Abbett & FOCUS GROWTH & INCOME
LARGE CAP COMPOSITE Co. CASH MANAGEMENT AIG SAAMCo
AIGGIC ("Lord Abbett") AIG SAAMCo Harris Associates L.P.
AIG SunAmerica Asset ("Harris")
Management SMALL CAP Marsico
Corporation ("AIG AIGGIC
SAAMCo") AIG SAAMCo FOCUS VALUE
T. Rowe Price Lord Abbett Third Avenue
Associates, Inc. J.P. Morgan Investment
("T. Rowe Price") Management Inc. ("J.P.
Morgan")
LARGE CAP VALUE American Century
AIGGIC Investment Management,
T. Rowe Price Inc. ("American Century")
Wellington
Management Company, FOCUS TECHNET
LLP. ("Wellington AIG SAAMCo
Management") Dresdner RCM Global
Investors LLC ("Dresdner")
Van Wagoner Capital
Management, Inc. ("Van
Wagoner")
</Table>
SELECT AND FOCUSED PORTFOLIO OPERATION
Each SELECT AND FOCUSED PORTFOLIO is designed to meet a distinct investment
objective facilitated by the management philosophy of three different money
managers (except for the Cash Management portfolio).
11
Generally, the Purchase Payments received for allocation to each SELECT OR
FOCUSED PORTFOLIO will be allocated equally among the three managers for that
SELECT AND FOCUSED PORTFOLIO. Each quarter AIG SAAMCo will evaluate the asset
allocation between the three managers of each SELECT OR FOCUSED PORTFOLIO. If
AIG SAAMCo determines that the assets have become significantly unequal in
allocation among the managers, then the incoming cash flows may be redirected in
an attempt to stabilize the allocations. Generally, existing SELECT AND FOCUSED
PORTFOLIO assets will not be rebalanced. However, We reserve the right to do so
in the event that it is deemed necessary and not adverse to the interests of
contract owners invested in the SELECT AND FOCUSED PORTFOLIOS.
THE SEASONS STRATEGIES
The contract offers four multi-manager variable investment SEASONS STRATEGIES,
each with a different investment objective. We designed the SEASONS STRATEGIES
utilizing an asset allocation approach to meet your investment needs over time,
considering factors such as your age, goals and risk tolerance. However, each
SEASONS STRATEGY is designed to achieve different levels of growth over time.
Each SEASONS STRATEGY invests in three underlying investment portfolios of the
Seasons Series Trust. The allocation of money among these investment portfolios
varies depending on the objective of the SEASONS STRATEGY.
The underlying investment portfolios of Seasons Series Trust in which the
SEASONS STRATEGIES invest include the Asset Allocation: Diversified Growth
Portfolio, the Stock Portfolio and the Multi-Managed Growth, Multi-Managed
Moderate Growth, Multi-Managed Income/Equity and Multi-Managed Income Portfolios
(the "Multi-Managed Portfolios").
The Asset Allocation: Diversified Growth Portfolio is managed by Putnam. The
Stock Portfolio is managed by T. Rowe Price. All of the Multi-Managed Portfolios
include the same three basic investment components: a growth component managed
by Janus, a balanced component managed by AIG SAAMCo and a fixed income
component managed by Wellington, LLP. The Growth SEASONS STRATEGY and the
Moderate Growth SEASONS STRATEGY also have an aggressive growth component which
AIG SAAMCo manages. The percentage that any one of these components represents
in each Multi-Managed Portfolio varies in accordance with the investment
objective.
Each SEASONS STRATEGY uses an investment approach based on asset allocation.
This approach is achieved by each SEASONS STRATEGY investing in distinct
percentages in three specific underlying funds of the Seasons Series Trust. In
turn, the underlying funds invest in a combination of domestic and international
stocks, bonds and cash. Based on the percentage allocation to each specific
underlying fund and each underlying fund's investment approach, each SEASONS
STRATEGY initially has a neutral asset allocation mix of stocks, bonds and cash.
SEASONS STRATEGY REBALANCING
Each SEASONS STRATEGY is designed to meet its investment objective by allocating
a portion of your money to three different investment portfolios. At the
beginning of each quarter a rebalancing occurs among the underlying funds to
realign each SEASONS STRATEGY with its distinct percentage investment in the
three underlying funds. This rebalancing is designed to help maintain the
neutral asset allocation mix for each SEASONS STRATEGY. The pie charts on the
following pages demonstrate:
- the neutral asset allocation mix for each SEASONS STRATEGY; and
- the percentage allocation in which each SEASONS STRATEGY invests.
On the first business day of each quarter (or as close to such date as is
administratively practicable) your money will be allocated among the various
investment portfolios according to the percentages set forth on the prior pages.
Additionally, within each Multi-Managed Portfolio, your money will be rebalanced
among the various components. We also reserve the right to rebalance any SEASONS
STRATEGY more frequently if rebalancing is deemed necessary and not adverse to
the interests of contract owners invested in such SEASONS STRATEGY. Rebalancing
a SEASONS STRATEGY may involve shifting a portion of assets out of underlying
investment portfolios with higher returns into underlying investment portfolios
with relatively lower returns.
12
<Table>
GROWTH STRATEGY MODERATE GROWTH STRATEGY
GOAL: Long-term growth of capital, allocating its GOAL: Growth of capital through investments in equities,
assets primarily to stocks. This SEASONS STRATEGY may be with a secondary objective of conservation of principal by
best suited for those with longer periods to invest. allocating more of its assets to bonds than the Growth
Strategy. This SEASONS STRATEGY may be best suited for those
Target Asset Allocation: nearing retirement years but still earning income.
Stocks 80% Bonds 15% Cash Target Asset Allocation:
5%
Stocks 70% Bonds 25% Cash
[GROWTH STRATEGY PIE CHART] 5%
[MODERATE GROWTH PIE CHART]
</Table>
<Table>
BALANCED GROWTH STRATEGY CONSERVATIVE GROWTH STRATEGY
GOAL: Focuses on conservation of principal by GOAL: Capital preservation while maintaining some
investing in a more balanced weighting of stocks and potential for growth over the long term. This SEASONS
bonds, with a secondary objective of seeking a high total STRATEGY may be best suited for those with lower investment
return. This SEASONS STRATEGY may be best suited for those risk tolerance.
approaching retirement and with less tolerance for
investment risk. Target Asset Allocation:
Target Asset Allocation: Stocks 42% Bonds 53% Cash
5%
Stocks 55% Bonds 40% Cash
5% [CONSERVATIVE GROWTH PIE CHART]
[BALANCED GROWTH PIE CHART]
</Table>
13
FIXED INVESTMENT OPTIONS
Your contract may offer Fixed Account Guarantee Periods ("FAGP") to which you
may allocate certain Purchase Payments or contract value. Available guarantee
periods may be for different lengths of time (such as 1, 3 or 5 years) and may
have different guaranteed interest rates, as noted below. We guarantee the
interest rate credited to amounts allocated to any available FAGP and that the
rate will never be less than the minimum guaranteed interest rate as specified
in your contract. Once established, the rates for specified payments do not
change during the guarantee period. We determine the FAGPs offered at any time
in Our sole discretion and We reserve the right to change the FAGPs that We make
available at any time, unless state law requires Us to do otherwise. Please
check with your financial representative to learn if any FAGPs are currently
offered.
There are three interest rate scenarios for money allocated to the FAGPs. Each
of these rates may differ from one another. Once declared, the applicable rate
is guaranteed until the corresponding guarantee period expires. Under each
scenario your money may be credited a different rate of interest as follows:
- INITIAL RATE: The rate credited to any portion of the initial Purchase
Payment allocated to a FAGP.
- CURRENT RATE: The rate credited to any portion of the subsequent Purchase
Payments allocated to a FAGP.
- RENEWAL RATE: The rate credited to money transferred from a FAGP or a
VARIABLE PORTFOLIO into a FAGP and to money remaining in a FAGP after
expiration of a guarantee period.
When a FAGP ends, you may leave your money in the same FAGP or you may
reallocate your money to another FAGP or to the VARIABLE PORTFOLIOS. If you want
to reallocate your money, you must contact Us within 30 days after the end of
the current interest guarantee period and instruct Us as to where you would like
the money invested. We do not contact you. If We do not hear from you, your
money will remain in the same FAGP where it will earn interest at the renewal
rate then in effect for that FAGP.
If you take money out of any available multi-year FAGP, before the end of the
guarantee period, We make an adjustment to your contract. We refer to the
adjustment as a market value adjustment ("MVA"). The MVA reflects any difference
in the interest rate environment between the time you place your money in the
FAGP and the time when you withdraw or transfer that money. This adjustment can
increase or decrease your contract value. Generally, if interest rates drop
between the time you put your money into a FAGP and the time you take it out, We
credit a positive adjustment to your contract. Conversely, if interest rates
increase during the same period, We post a negative adjustment to your contract.
You have 30 days after the end of each guarantee period to reallocate your funds
without incurring any MVA. APPENDIX A SHOWS HOW WE CALCULATE AND APPLY THE MVA.
You may systematically transfer interest earned in available FAGPs into any of
the VARIABLE PORTFOLIOS on certain periodic schedules offered by Us. These
systematic transfers do not count toward the 15 free transfers per contract year
and are not subject to a MVA. You may change or terminate these systematic
transfers by contacting Our Annuity Service Center.
All FAGPs may not be available in all states. We reserve the right to refuse any
Purchase Payment to available FAGPs if We are crediting a rate equal to the
minimum guaranteed interest rate specified in your contract. We may also offer
the specific Dollar Cost Averaging Fixed Accounts ("DCAFA"). The rules,
restrictions and operation of the DCAFAs may differ from the standard FAGPs
described above, see DOLLAR COST AVERAGING PROGRAM BELOW for more details.
DOLLAR COST AVERAGING FIXED ACCOUNTS
You may invest initial and/or subsequent Purchase Payments in the DCA fixed
accounts ("DCAFA"), if available. DCAFAs also credit a fixed rate of interest
but are specifically designed to facilitate a dollar cost averaging program.
Interest is credited to amounts allocated to the DCAFAs while your investment is
transferred to the VARIABLE PORTFOLIOS over certain specified time frames. The
interest rates applicable to the DCAFA may differ from those applicable to any
available FAGPs but will never be less than the minimum annual guaranteed
interest rate as specified in your contract. However, when using a DCAFA the
annual interest rate is paid on a declining balance as you systematically
transfer your investment to the VARIABLE PORTFOLIOS.
14
Therefore, the actual effective yield will be less than the annual crediting
rate. We determine the DCAFAs offered at any time in Our sole discretion and We
reserve the right to change to DCAFAs that We make available at any time, unless
state law requires Us to do otherwise. See DOLLAR COST AVERAGING PROGRAM BELOW
for more information.
TRANSFERS DURING THE ACCUMULATION PHASE
During the Accumulation Phase you may transfer funds between the VARIABLE
PORTFOLIOS and/or the fixed account option. Funds already in your contract
cannot be transferred into the DCA fixed accounts. You must transfer at least
$100. If less than $100 will remain in any VARIABLE PORTFOLIO after a transfer,
that amount must be transferred as well.
Subject to certain rules, you may request transfers of your account value
between the VARIABLE PORTFOLIOS and/or the fixed account options in writing or
by telephone. Additionally, you may access your account and request transfers
between VARIABLE PORTFOLIOS and/or the fixed account options through AIG
SunAmerica's website (http://www.aigsunamerica.com). We currently allow 15 free
transfers per contract per year. We charge $25 ($10 in Pennsylvania and Texas)
for each additional transfer in any contract year. Transfers resulting from your
participation in the DCA program count against your 15 free transfers per
contract year.
We may accept transfer requests by telephone or the Internet unless you tell Us
not to on your contract application. When receiving instructions over the
telephone or the Internet, We follow appropriate procedures to provide
reasonable assurance that the transactions executed are genuine. Thus, We are
not responsible for any claim, loss or expense from any error resulting from
instructions received over the telephone or the Internet. If We fail to follow
Our procedures, We may be liable for any losses due to unauthorized fraudulent
instructions.
This product is not designed for professional "market timing" organizations or
other organizations or individuals engaged in trading strategies that seek to
benefit from short term price fluctuations or price irregularities by making
programmed transfers, frequent transfers or transfers that are large in relation
to the total assets of the underlying portfolio in which the VARIABLE PORTFOLIOS
invest. These market timing strategies are disruptive to the underlying
portfolios in which the VARIABLE PORTFOLIOS invest and thereby potentially
harmful to investors. If We determine, in Our sole discretion, that your
transfer patterns among the VARIABLE PORTFOLIOS reflect a market timing
strategy, We reserve the right to take action to protect the other investors.
Such action may include but would not be limited to restricting the way you can
request transfers among the VARIABLE PORTFOLIOS, imposing penalty fees on such
trading activity, and/or otherwise restricting transfer options in accordance
with state and federal rules and regulations.
Any transfer request in excess of 12 transfers per contract year must be
submitted in writing by U.S. mail. Transfer requests sent by same day mail,
overnight mail or courier services will not be accepted. We will process any
transfer request as of the day We receive it, if received before close of the
New York Stock Exchange ("NYSE"), generally at 1:00 p.m. P.T. If the transfer
request is received after the close of the NYSE, the request will be processed
on the next business day.
Transfer requests required to be submitted by U.S. mail can only be cancelled in
writing by U.S. mail. We will process a cancellation request only if it is
received prior to or simultaneous with the original transfer request.
Regardless of the number of transfers you have made, We will monitor and, upon
written notification, may terminate your transfer privileges if We determine
that you are engaging in a pattern of transfers that reflects a market timing
strategy or is potentially harmful to other policy owners. Some of the factors
We will consider include:
- the dollar amount of the transfer;
- the total assets of the VARIABLE PORTFOLIO involved in the transfer;
- the number of transfers completed in the current calendar quarter; or
- whether the transfer is part of a pattern of transfers to take advantage
of short-term market fluctuations or market inefficiencies.
15
For information regarding transfers during the Income Phase, SEE INCOME OPTIONS
BELOW.
We reserve the right to modify, suspend, waive or terminate these transfer
provisions at any time.
DOLLAR COST AVERAGING PROGRAM
The Dollar Cost Averaging ("DCA") program allows you to invest gradually in the
VARIABLE PORTFOLIOS. Under the program you systematically transfer a set dollar
amount or percentage of portfolio value from one VARIABLE PORTFOLIO or DCAFAs
(source account) to any other VARIABLE PORTFOLIO (target account). Transfers may
occur on certain periodic schedules such as monthly or weekly and count against
your 15 free transfers per contract year. You may change the frequency to other
available options at any time by notifying Us in writing. The minimum transfer
amount under the DCA program is $100 per transaction, regardless of the source
account. Currently, there is no fee for participating in the DCA program.
We may offer DCAFAs exclusively to facilitate the DCA program for a specified
time period. The DCAFAs only accept new Purchase Payments. You cannot transfer
money already in your contract into the DCAFAs. If you allocate new Purchase
Payments into a DCAFA, We transfer all your money into the VARIABLE PORTFOLIOS
over the selected time period. You cannot change the option once selected.
You may terminate the DCA program at any time. If money remains in the DCAFAs,
We transfer the remaining money according to your instructions or to your
current allocation on file. Upon termination of the DCA program, if money
remains in the DCA fixed accounts, We transfer the remaining money to the same
target account(s) as previously designated, unless We receive different
instructions from you. Transfers resulting from a termination of this program do
not count towards your 15 free transfers.
The DCA program is designed to lessen the impact of market fluctuations on your
investment. However, We cannot ensure that you will make a profit. When you
elect the DCA program, you are continuously investing in securities regardless
of fluctuating price levels. You should consider your tolerance for investing
through periods of fluctuating price levels.
Currently, We do not charge a fee for participation in the DCA program.
We reserve the right to modify, suspend or terminate this program at any time.
EXAMPLE:
Assume that you want to gradually move $750 each quarter from the Cash
Management Portfolio to the Mid-Cap Value Portfolio over six quarters. You
set up Dollar Cost Averaging and purchase Accumulation Units at the
following values:
<Table>
<Caption>
QUARTER ACCUMULATION UNIT UNITS PURCHASED
- --------------------- ----------------- ---------------
1 $ 7.50 100
2 $ 5.00 150
3 $10.00 75
4 $ 7.50 100
5 $ 5.00 150
6 $ 7.50 100
</Table>
You paid an average price of only $6.67 per Accumulation Unit over six
quarters, while the average market price actually was $7.08. By investing
an equal amount of money each month, you automatically buy more
Accumulation Units when the market price is low and fewer Accumulation
Units when the market price is high. This example is for illustrative
purposes only.
16
ASSET ALLOCATION REBALANCING PROGRAM
Earnings in your contract may cause the percentage of your investment in each
investment option to differ from your original allocations. The Automatic Asset
Rebalancing Program addresses this situation. At your election, We periodically
rebalance your investments in the VARIABLE PORTFOLIOS to return your allocations
to their original percentages. Asset rebalancing typically involves shifting a
portion of your money out of an investment option with a higher return into an
investment option with a lower return. At your request, rebalancing occurs on a
quarterly, semi-annual or annual basis. Transfers made as a result of
rebalancing do not count against your 15 free transfers for the contract year.
We reserve the right to modify, suspend or terminate this program at any time.
Currently, there is no charge for participating in this program.
PRINCIPAL ADVANTAGE PROGRAM
The Principal Advantage Program allows you to invest in one or more of the
VARIABLE PORTFOLIOS without putting your principal at direct risk. The program
accomplishes this by allocating your investment strategically between the fixed
investment options (other than the DCA fixed accounts) and the VARIABLE
PORTFOLIOS you select. You decide how much you want to invest and approximately
when you want a return of principal. We calculate how much of your Purchase
Payment to allocate to the particular fixed investment option to ensure that it
grows to an amount equal to your total principal invested under this program. We
invest the rest of your principal in the VARIABLE PORTFOLIOS of your choice.
This program is only available when We are offering multi-year fixed account
options. We reserve the right to modify, suspend or terminate this program at
any time.
EXAMPLE:
Assume that you want to allocate a portion of your initial Purchase Payment
of $100,000 to the fixed investment option. You want the amount allocated
to the fixed investment option to grow to $100,000 in 3 years. If the
3-year fixed investment option is offering a 3% interest rate, We will
allocate $91,514 to the 3-year fixed investment option to ensure that this
amount will grow to $100,000 at the end of the 3-year period. The remaining
$8,486 may be allocated among the VARIABLE PORTFOLIOS, as determined by
you, to provide opportunity for greater growth.
VOTING RIGHTS
AIG SunAmerica Life is the legal owner of the Seasons Series Trust shares.
However, when an underlying portfolio solicits proxies in conjunction with a
vote of shareholders, We must obtain your instructions on how to vote those
shares. We vote all of the shares We own in proportion to your instructions.
This includes any shares We own on Our own behalf. Should We determine that We
are no longer required to comply with these rules, We will vote the shares in
Our own right.
SUBSTITUTION
We may amend your contract due to changes to the VARIABLE PORTFOLIOS offered
under your contract. For example, We may offer new VARIABLE PORTFOLIOS, delete
VARIABLE PORTFOLIOS, or stop accepting allocations and/or investments in a
particular VARIABLE PORTFOLIO. We may move assets and or re-direct future
premium allocations from one VARIABLE PORTFOLIO to another if We receive
investor approval through a proxy vote or SEC approval for a fund substitution.
This would occur if a VARIABLE PORTFOLIO is no longer an appropriate investment
for the contract, for reason such as continuing substandard performance, or for
changes to the portfolio manager, investment objectives, risks and strategies,
or federal or state laws. The new VARIABLE PORTFOLIO offered may have different
fees and expenses. You will be notified of any upcoming proxies or substitutions
that affect your VARIABLE PORTFOLIO choices.
17
ACCESS TO YOUR MONEY
- --------------------------------------------------------------------------------
You can access money in your contract in two ways:
- by making a partial or total withdrawal, and/or;
- by receiving income payments during the Income Phase. SEE INCOME OPTIONS
BELOW.
Generally, We deduct a withdrawal charge applicable to any total or partial
withdrawal and a MVA if a partial withdrawal comes from the 3-year fixed
investment option prior to the end of a guarantee period. If you withdraw your
entire contract value, We also deduct any applicable premium taxes and a
contract maintenance fee. SEE EXPENSES BELOW. We calculate charges due on a
total withdrawal on the day after We receive your request and other required
paper work. We return your contract value less any applicable fees and charges.
The minimum partial withdrawal amount is $1,000. We require that the total
account balance left in any VARIABLE PORTFOLIOS or fixed account be at least
$500 after the withdrawal. You must send a written withdrawal request. Unless
you provide Us with different instructions, partial withdrawals will be made in
equal amounts from each VARIABLE PORTFOLIOS and the fixed investment option in
which your contract is invested. Withdrawals from fixed investment options prior
to the end of the guarantee period may result in a MVA.
FREE WITHDRAWAL PROVISION
Your contract provides for a free withdrawal amount each year. A free withdrawal
amount is the portion of your account that We allow you to take out each year
without being charged a surrender penalty. However, upon a future full surrender
of your contract any previous free withdrawals would be subject to a surrender
charge, if any is applicable at the time of the full surrender (except in the
state of Washington).
Purchase payments, above and beyond the amount of your free withdrawal amount,
that are withdrawn prior to the end of the third year will result in your paying
a penalty in the form of a surrender charge. The amount of the charge and how it
applies are discussed more fully below. SEE EXPENSES BELOW. You should consider,
before purchasing this contract, the effect this charge will have on your
investment if you need to withdraw more money than the free withdrawal amount.
You should fully discuss this decision with your financial representative.
To determine your free withdrawal amount and your withdrawal charge, We refer to
two special terms. These are penalty free earnings and the total invested
amount.
The penalty-free earnings portion of your contract is simply your account value
less your total invested amount. The total invested amount is the total of all
Purchase Payments you have made into the contract less portions of some prior
withdrawals you made. The portions of prior withdrawals that reduce your total
invested amount are as follows:
- - Free withdrawals in any year that were in excess of your penalty-free earnings
and were based on the part of the total invested amount that was no longer
subject to withdrawal charges at the time of the withdrawal, and
- - Any prior withdrawals (including withdrawal charges on those withdrawals) of
the total invested amount on which you already paid a surrender penalty.
When you make a withdrawal, We assume that it is taken from penalty-free
earnings first, then from the total invested amount on a first-in, first-out
basis. This means that you can also access your Purchase Payments which are no
longer subject to a withdrawal charge before those Purchase Payments which are
still subject to the withdrawal charge.
During the first year after We issue your contract your free withdrawal amount
is the greater of (1) your penalty-free earnings; and (2) if you are
participating in the Systematic Withdrawal program, a total of 10% of your total
invested amount. If you are a Washington resident, you may withdraw during the
first contract year, the greater of
18
(1); (2); or (3) interest earnings from the amounts allocated to the fixed
account options, not previously withdrawn.
After the first contract year, you can take out the greater of the following
amounts each year (1) your penalty-free earnings and any portion of your total
invested amount no longer subject to withdrawal charge or (2) 10% of the portion
of your total invested amount that has been in your contract for at least one
year. If you are a Washington resident, your maximum free withdrawal amount,
after the first contract year, is the greater of (1); (2); or (3) interest
earnings from amounts allocated to the fixed account options, not previously
withdrawn.
We calculate charges due on a total withdrawal on the day after We receive your
request and your contract. We return to you your contract value less any
applicable fees and charges.
The withdrawal charge percentage is determined by the age of the Purchase
Payment remaining in the contract at the time of the withdrawal. For the purpose
of calculating the withdrawal charge, any prior Free Withdrawal is not
subtracted from the total Purchase Payments still subject to withdrawal charges.
For example, you make an initial Purchase Payment of $100,000. For purposes of
this example We will assume a 0% growth rate over the life of the contract, no
election of Seasons Estate Advantage, Earnings Advantage or Income Protector
options and no subsequent Purchase Payments. In contract year 2, you take out
your maximum free withdrawal of $10,000. After that free withdrawal your
contract value is $90,000. In contract year 3 you request a full surrender of
your contract. We will apply the following calculation,
A-(B x C)=D, where:
A=Your contract value at the time of your request for surrender ($90,000)
B=The amount of your Purchase Payments still subject to withdrawal charge
($100,000)
C=The withdrawal charge percentage applicable to the age of each Purchase
Payment (6%)[B x C=$6,000]
D=Your full surrender value ($84,000)
Under most circumstances, the partial withdrawal minimum is $1,000. We require
that the value left in any investment option be at least $100, after the
withdrawal. You must send a written withdrawal request. Unless you provide Us
with different instructions, partial withdrawals will be made pro rata from each
VARIABLE PORTFOLIO and the fixed account option in which your contract is
invested.
Under certain Qualified plans, access to the money in your contract may be
restricted. Additionally, withdrawals made prior to age 59 1/2 may result in a
10% federal penalty tax. SEE TAXES BELOW.
We may be required to suspend or postpone the payment of a withdrawal for any
period of time when: (1) the NYSE is closed (other than a customary weekend and
holiday closings); (2) trading with the NYSE is restricted; (3) an emergency
exists such that disposal of or determination of the value of shares of the
VARIABLE PORTFOLIOS is not reasonably practicable; (4) the SEC, by order, so
permits for the protection of contract owners.
Additionally, We reserve the right to defer payments for a withdrawal from a
fixed account option. Such deferrals are limited to no longer than six months.
SYSTEMATIC WITHDRAWAL PROGRAM
During the Accumulation Phase, you may elect to receive periodic income payments
under the systematic withdrawal program. Under the program, you may choose to
take monthly, quarterly, semi-annual or annual payments from your contract.
Electronic transfer of these funds to your bank account is also available. The
minimum amount of each withdrawal is $100. Withdrawals may be taxable and a 10%
federal penalty tax may apply if you are under age 59 1/2. There is no
additional charge for participating in this program, although a withdrawal
charge and/or MVA may apply.
The program is not available to everyone. Please check with Our Annuity Service
Center, which can provide the necessary enrollment forms. We reserve the right
to modify, suspend or terminate this program at any time.
19
MINIMUM CONTRACT VALUE
Where permitted by state law, We may terminate your contract if both of the
following occur: (1) your contract is less than $500 as a result of withdrawals;
and (2) you have not made any Purchase Payments during the past three years. We
will provide you with sixty days written notice. At the end of the notice
period, We will distribute the contract's remaining value to you.
QUALIFIED CONTRACT OWNERS
Certain Qualified plans restrict and/or prohibit your ability to withdraw money
from your contract. SEE TAXES BELOW for a more detailed explanation.
DEATH BENEFIT
- --------------------------------------------------------------------------------
If you should die during the Accumulation Phase, your Beneficiary will receive a
death benefit. The death benefit options are discussed in detail below.
The death benefit is not paid after you are in the Income Phase. If you die
during the Income Phase, your Beneficiary will receive any remaining guaranteed
income payments in accordance with the income option you choose. SEE INCOME
OPTIONS BELOW.
You select the Beneficiary to receive any amounts payable on death. You may
change the Beneficiary at any time, unless you previously made an irrevocable
Beneficiary designation. A new Beneficiary designation is not effective until We
record the change.
We calculate and pay the death benefit when We receive all required paperwork
and satisfactory proof of death. We consider the following satisfactory proof of
death: (1) a certified copy of a death certificate; (2) a certified copy of a
decree of court of competent jurisdiction as to the finding of death; (3) a
written statement by a medical doctor who attended the deceased at the time of
death; or (4) any other proof satisfactory to Us.
The death benefit must be paid within 5 years of the date of death. The
Beneficiary may, in the alternative, elect to have the death benefit payable in
the form of an income payment. If the Beneficiary elects an income option, it
must be paid over the Beneficiary's lifetime or for a period not extending
beyond the Beneficiary's life expectancy. Income payments must begin within one
year of the owner's death. If the Beneficiary is the spouse of the deceased
owner, he or she can elect to continue the contract, rather than receive a death
benefit. SEE SPOUSAL CONTINUATION BELOW.
If the Annuitant dies before annuity payments begin, you can name a new
Annuitant. If no Annuitant is named within 30 days, you will become the
Annuitant. However, if the owner is a non-natural person (for example, a trust),
then the death of the Annuitant will be treated as the death of the owner, no
new Annuitant may be named and the death benefit will be paid.
This contract provides three death benefit options: the Standard Death Benefit
which is automatically included in your contract for no additional fee, an
optional enhanced death benefit called "Seasons Estate Advantage" which offers
you the selection of one of two options. If you choose the Seasons Estate
Advantage death benefit, you may also elect, for an additional fee, the Earnings
Advantage feature. Your death benefit elections must be made at the time of
contract application and the election cannot be terminated.
The term "Net Purchase Payment" is used frequently in explaining the death
benefit options. Net Purchase Payment is an on-going calculation. It does not
represent a contract value.
We define Net Purchase Payments as Purchase Payments less an adjustment for each
withdrawal. If you have not taken any withdrawals from your contract, Net
Purchase Payments equals total Purchase Payments into your contract. To
calculate the Adjustment amount for the first withdrawal made under the
contract, We determine the percentage by which the withdrawal reduced contract
value. For example, a $10,000 withdrawal from a $100,000 contract is a 10%
reduction in value. This percentage is calculated by dividing the amount of each
withdrawal (including fees and charges applicable to the withdrawal) by the
contract value immediately before taking that withdrawal. The resulting
percentage is then multiplied by the amount of total Purchase Payments and
subtracted
20
from the amount of total Purchase Payments on deposit at the time of the
withdrawal. The resulting amount is the initial Net Purchase Payment
calculation.
To arrive at the Net Purchase Payment calculation for subsequent withdrawals, We
determine the percentage by which the contract value is reduced by taking the
amount of the withdrawal in relation to the contract value immediately before
taking the withdrawal. We then multiply the Net Purchase Payment calculation as
determined prior to the withdrawal by this percentage. We subtract that result
from the Net Purchase Payment calculation as determined prior to the withdrawal
to arrive at all subsequent Net Purchase Payment calculations.
STANDARD DEATH BENEFIT
The Standard Death Benefit on your contract, is the greater of:
1. Net Purchase Payments compounded at a 3% annual growth rate from the
date of issue until the earlier of age 75 or the date of death, plus
any Purchase Payments recorded after the earlier of age 75 or the date
of death; and reduced for any withdrawals (and fees and charges
applicable to those withdrawals) recorded after the earlier of age 75
or the date of death, in the same proportion that the withdrawal
reduced the contract value on the date of the withdrawal.
2. the contract value on the date We receive all required paperwork and
satisfactory proof of death.
SEASONS ESTATE ADVANTAGE DEATH BENEFIT(S)
For an additional fee, you may elect one of the Seasons Estate Advantage death
benefits which can provide greater protection for your beneficiaries. You must
chose between Option 1 and Option 2 at the time you purchase your contract and
you cannot change your election at any time. The Seasons Estate Advantage death
benefit is not available if you are age 81 or older at the time of contract
issue. The fee for Seasons Estate Advantage death benefit is 0.15% of the
average daily ending value of the assets you have allocated to the VARIABLE
PORTFOLIOS.
OPTION 1 - 5% ACCUMULATION OPTION --
THE DEATH BENEFIT IS THE GREATER OF:
a. the contract value on the date We receive all required paperwork and
satisfactory proof of death; or
b. Net Purchase Payments compounded to the earlier of your 80th birthday
or the date of death, at a 5% annual growth rate, plus any Purchase
Payments recorded after the 80th birthday or the date of death; and
reduced for any withdrawals (and fees and charges applicable to those
withdrawals) recorded after the 80th birthday or the date of death, in
the same proportion that the withdrawal reduced the contract value on
the date of the withdrawal, up to a maximum benefit of two times the
Net Purchase Payments made over the life of your contract.
If you die after your latest Annuity Date and you selected the 5%
Accumulation Option, any death benefit payable under the contract will
be the Standard Death Benefit as described above. Therefore, your
beneficiary will not receive any benefit from Seasons Estate Advantage.
This option may not be available in your state. Check with your
investment representative regarding availability.
OPTION 2 - MAXIMUM ANNIVERSARY VALUE OPTION --
THE DEATH BENEFIT IS THE GREATEST OF:
a. Net Purchase Payments; or
b. the contract value on the date We receive all required paperwork and
satisfactory proof of death; or
c. the maximum anniversary value on any contract anniversary prior to your
81st birthday. The anniversary value equals the contract value on a
contract anniversary increased by any Purchase Payments recorded after
that anniversary; and reduced for any withdrawals (and fees and charges
applicable to those
21
withdrawals) recorded after the anniversary, in the same proportion
that the withdrawal reduced the contract value on the date of the
withdrawal.
If you are age 90 or older at the time of death and you had selected
the Maximum Anniversary Value Option, the death benefit will be equal
to the contract value on the date We receive all required paperwork and
satisfactory proof of death. Thus, you will not receive the advantage
of the Maximum Anniversary Value Option if you are over age 80 at the
time of contract issue or if you are 90 or older at the time of your
death. This option may not be available in your state. Check with your
investment representative regarding availability.
EARNINGS ADVANTAGE
The Earnings Advantage benefit may increase the Seasons Estate Advantage death
benefit amount. In order to elect Earnings Advantage, you must also elect
Seasons Estate Advantage described above. The Earnings Advantage is available
for an additional charge of 0.25% of the average daily ending value of the
assets you have allocated to the VARIABLE PORTFOLIOS. You are not required to
elect the Earnings Advantage feature if you select Seasons Estate Advantage but,
once elected, generally it cannot be terminated. Further, if you elect both
Seasons Estate Advantage and Earnings Advantage, the combined charge will be
0.40% of the average daily ending value of the assets you have allocated to the
VARIABLE PORTFOLIOS.
With the Earnings Advantage benefit, if you have earnings in your contract at
the time of death, We will add a percentage of those earnings (the "Earnings
Advantage Percentage"), subject to a maximum dollar amount (the "Maximum
Earnings Advantage Amount"), to the death benefit payable.
The Contract Year of Death will determine the Earnings Advantage Percentage and
the Maximum Earnings Advantage Amount, as set forth below:
<Table>
- ------------------------------------------------------------------------------------------------------------------
EARNINGS ADVANTAGE MAXIMUM
CONTRACT YEAR OF DEATH PERCENTAGE EARNINGS ADVANTAGE AMOUNT
- ------------------------------------------------------------------------------------------------------------------
Years 0 - 4 25% of Earnings 25% of Net Purchase Payments*
- ------------------------------------------------------------------------------------------------------------------
Years 5 - 9 40% of Earnings 40% of Net Purchase Payments*
- ------------------------------------------------------------------------------------------------------------------
Years 10+ 50% of Earnings 50% of Net Purchase Payments*
- ------------------------------------------------------------------------------------------------------------------
</Table>
* Purchase Payments received after the 5th contract anniversary must remain in
the contract for at least 6 full months to be included as part of the Net
Purchase Payments for the purpose of the Maximum Earnings Advantage Amount
calculation.
What is the Contract Year of Death?
Contract Year of Death is the number of full 12 month periods beginning with the
date your contract is issued and ending on the date of death.
What is the Earnings Advantage Percentage amount?
We determine the amount of the Earnings Advantage based upon a percentage of
earnings in your contract at the time of your death. For the purpose of this
calculation, earnings are defined as (1) minus (2) where
(1) equals the contract value on the date of death; and
(2) equals Net Purchase Payments.
What is the Maximum Earnings Advantage?
The Earnings Advantage benefit is subject to a maximum dollar amount. The
Maximum Earnings Advantage Amount is equal to a percentage of your Net Purchase
Payments.
Earning Advantage is not available if you are age 81 or older at the time We
issue your contract. Furthermore, a Continuing Spouse may not benefit from
Earnings Advantage if he/she is age 81 or older on the Continuation
22
Date. SEE SPOUSAL CONTINUATION BELOW. The Earnings Advantage benefit is not
payable after the latest Annuity Date. SEE INCOME OPTIONS BELOW.
Earnings Advantage may not be available in your state or through the
broker-dealer with which your financial advisor is affiliated. See your
financial advisor for information regarding availability.
WE RESERVE THE RIGHT TO MODIFY, SUSPEND OR TERMINATE THESE DEATH BENEFIT
FEATURES (IN THEIR ENTIRETY OR ANY COMPONENT) AT ANY TIME FOR PROSPECTIVELY
ISSUED CONTRACTS.
SPOUSAL CONTINUATION
If you are the original owner of the contract and the Beneficiary is your
spouse, your spouse may elect to continue the contract after your death. The
spouse becomes the new owner ("Continuing Spouse"). Generally, the contract and
its elected features, if any, remain the same. The Continuing Spouse is subject
to the same fees, charges and expenses applicable to the original owner of the
contract. A spousal continuation can only take place upon the death of the
original owner of the contract.
Upon a spouse's continuation of the contract, We will contribute to the contract
value an amount by which the death benefit that would have been paid to the
beneficiary upon the death of the original owner, exceeds the contract value
("Continuation Contribution"), if any. We calculate the Continuation
Contribution as of the date of the original owner's death. We will add the
Continuation Contribution as of the date We receive both the Continuing Spouse's
written request to continue the contract and proof of death of the original
owner in a form satisfactory to Us ("Continuation Date"). If a Continuation
Contribution is added to the contract value, the age of the Continuing Spouse on
the Continuation Date and on the date of the Continuing Spouse's death will be
used in determining any future death benefits under the Contract. The
Continuation Contribution is not considered a Purchase Payment for the purposes
of any other calculations except as explained in Appendix B. SEE APPENDIX B
BELOW FOR FURTHER EXPLANATION OF THE DEATH BENEFIT CALCULATIONS FOLLOWING A
SPOUSAL CONTINUATION. To the extent that the Continuing Spouse invests in the
VARIABLE PORTFOLIOS or MVA fixed account they will be subject to investment risk
as was the original owner.
Generally, the Continuing Spouse cannot change any contract provisions as the
new owner. However, on the Continuation Date, the Continuing Spouse may
terminate the original owner's election of the Seasons Estate Advantage and the
available death benefit will be the Standard Death Benefit. The Continuing
Spouse cannot elect to continue Earnings Advantage without also continuing the
Seasons Estate Advantage. We will terminate the Seasons Estate Advantage if the
Continuing Spouse is age 81 or older on the Continuation Date and a Continuation
Contribution has been added to the contract value. The available death benefit
will then be the Standard Death Benefit. If Seasons Estate Advantage is
continued and the Continuing Spouse dies after the latest Annuity Date, and the
5% Accumulation option was selected, the death benefit will be the Standard
Death Benefit. If the Maximum Anniversary value option was selected and the
Continuing Spouse lives to age 90 or older, the death benefit will be the
contract value. However, if death occurs before the latest annuity date, the
Continuing Spouse will still benefit from the Earnings Advantage.
Generally, the age of the Continuing Spouse on the Continuation Date (if any
Continuation Contribution has been made) and on the date of the Continuing
Spouse's death will be used in determining any future death benefits under the
Contract. If no Continuation Contribution has been made to the contract on the
Continuation Date, the age of the spouse on the date of the original contract
issue will be used to determine any age-driven benefits. SEE APPENDIX B BELOW
FOR A DISCUSSION OF THE DEATH BENEFIT CALCULATIONS AFTER A SPOUSAL CONTINUATION.
WE RESERVE THE RIGHT TO MODIFY, SUSPEND OR TERMINATE THE SPOUSAL CONTINUATION
PROVISION (IN ITS ENTIRETY OR ANY COMPONENT) AT ANY TIME FOR PROSPECTIVELY
ISSUED CONTRACTS.
23
EXPENSES
- --------------------------------------------------------------------------------
There are charges and expenses associated with your contract. These charges and
expenses reduce your investment return. We will not increase the contract
maintenance fee or withdrawal charges under your contract. However, the
investment charges under your contract may increase or decrease. Some states may
require that We charge less than the amounts described below.
SEPARATE ACCOUNT CHARGES
The Company deducts a mortality and expense risk charge in the amount of 1.55%,
annually of the value of your contract invested in the VARIABLE PORTFOLIOS. We
deduct the charge daily. This charge compensates the Company for the mortality
and expense risk and the costs of contract distribution assumed by the Company.
Generally, the mortality risks assumed by the Company arise from its contractual
obligations to make income payments after the Annuity Date and to provide a
death benefit. The expense risk assumed by the Company is that the costs of
administering the contracts and the Separate Account will exceed the amount
received from the administrative fees and charges assessed under the contract.
If these charges do not cover all of Our expenses, We will pay the difference.
Likewise, if these charges exceed Our expenses, We will keep the difference.
WITHDRAWAL CHARGES
During the Accumulation Phase you may make withdrawals from your contract.
However, a withdrawal charge may apply. We apply a withdrawal charge upon an
early withdrawal against each Purchase Payment you put into the contract. The
withdrawal charge equals a percentage of the Purchase Payment you take out of
the contract. The contract does provide a free withdrawal amount every year. SEE
ACCESS TO YOUR MONEY ABOVE. The withdrawal charge percentage declines each year
a Purchase Payment is in the contract, as follows:
WITHDRAWAL CHARGE
<Table>
<Caption>
YEAR 1 2 3 4+
- ----------------- --- --- --- ---
Withdrawal Charge 7% 6% 6% 0%
</Table>
After a Purchase Payment has been in the contract for three complete years, the
withdrawal charge no longer applies to that Purchase Payment. When calculating
the withdrawal charge, We treat withdrawals as coming first from the Purchase
Payments that have been in your contract the longest. However, for tax purposes,
your withdrawals are considered earnings first, then Purchase Payments.
Whenever possible, We deduct the withdrawal charge from the money remaining in
your contract from each of your investment options on a pro-rata basis. If you
withdraw all of your contract value, We deduct any applicable withdrawal charges
from the amount withdrawn. We will not assess a withdrawal charge for money
withdrawn to pay a death benefit or to pay contract fees or charges. We do not
currently assess a withdrawal charge upon election to receive income payments
from your contract. Withdrawals made prior to age 59 1/2 may result in tax
penalties. SEE TAXES BELOW.
INVESTMENT CHARGES
Investment Management Fees
Charges are deducted from the assets of the investment portfolios underlying the
VARIABLE PORTFOLIOS for the advisory and other expenses of the portfolios. SEE
FEE TABLES ABOVE.
24
Service Fees
Portfolio shares are all subject to fees imposed under a servicing plan adopted
by the Seasons Series Trust pursuant to Rule 12b-1 under the Investment Company
Act of 1940. This service fee of 0.15%, which is also known as a 12b-1 fee is
used generally to pay financial intermediaries for services provided over the
life of the contract. SEE FEE TABLES ABOVE.
FOR MORE DETAILED INFORMATION ON THESE INVESTMENT CHARGES, REFER TO THE
PROSPECTUS FOR THE SEASONS SERIES TRUST, ATTACHED.
CONTRACT MAINTENANCE FEE
During the Accumulation Phase, We subtract a contract maintenance fee from your
account once per year. This charge compensates Us for the cost of contract
administration. If your contract value is $50,000 or more on your contract
anniversary date, We will waive the charge. This waiver is subject to change
without notice. We will deduct the $35 ($30 in North Dakota) contract
maintenance fee on a pro-rata basis from your account value on your contract
anniversary. In the states of Pennsylvania, Texas and Washington a contract
maintenance fee will be deducted pro-rata from the VARIABLE PORTFOLIOS in which
you are invested, only. If you withdraw your entire contract value, We deduct
the fee from that withdrawal.
TRANSFER FEE
We currently permit 15 free transfers between investment options each contract
year. We charge you $25 for each additional transfer that contract year ($10 in
Pennsylvania and Texas). SEE INVESTMENT OPTIONS ABOVE.
OPTIONAL SEASONS ESTATE ADVANTAGE FEE
We charge 0.25% for the Seasons Estate Advantage feature. On a daily basis, We
deduct this charge from the average daily ending value of the assets you have
allocated to the VARIABLE PORTFOLIOS.
OPTIONAL EARNINGS ADVANTAGE FEE
We charge 0.15% for the Earnings Advantage feature. On a daily basis, We deduct
this charge from the average daily ending value of the assets you have allocated
to the VARIABLE PORTFOLIOS. Further, if you elect both Seasons Estate Advantage
and Earnings Advantage, the combined charge will be 0.40% of the average daily
ending value of the assets you have allocated to the VARIABLE PORTFOLIOS.
OPTIONAL INCOME PROTECTOR FEE
We deduct a fee equal to 0.10% of your Income Benefit Base from you contract
value. The Income Benefit Base is generally calculated by using your contract
value on the date of your effective enrollment in the program and then each
subsequent contract anniversary, adding Purchase Payments made since the prior
contract anniversary, less proportional withdrawals, and fees and charges
applicable to those withdrawals.
PREMIUM TAX
Certain states charge the Company a tax on the premiums you pay into the
contract ranging from 0.0% to 3.5%. We deduct these premium tax charges from
your contract when applicable. Currently, We deduct the charge for premium taxes
when you fully surrender or annuitize the contract. In the future, We may assess
this deduction at the time you put Purchase Payment(s) into the contract or upon
payment of a death benefit.
INCOME TAXES
We do not currently deduct income taxes from your contract. We reserve the right
to do so in the future.
REDUCTION OR ELIMINATION OF CHARGES AND EXPENSES, AND ADDITIONAL AMOUNTS
CREDITED
Sometimes sales of the contracts to groups of similarly situated individuals may
lower Our administrative and/or sales expenses. We reserve the right to reduce
or waive certain charges and expenses when this type of sale occurs.
25
In addition, We may also credit additional interest to policies sold to such
groups. We determine which groups are eligible for such treatment. Some of the
criteria We evaluate to make a determination are: size of the group; amount of
expected Purchase Payments; relationship existing between Us and prospective
purchaser; nature of the purchase; length of time a group of contracts is
expected to remain active; purpose of the purchase and whether that purpose
increases the likelihood that Our expenses will be reduced; and/or any other
factors that We believe indicate that administrative and/or sales expenses may
be reduced.
AIG SunAmerica Life may make such a determination regarding sales to its
employees, it affiliates' employees and employees of currently contracted
broker-dealers; its registered representatives and immediate family members of
all of those described.
We reserve the right to change or modify any such determination or the treatment
applied to a particular group, at any time.
INCOME OPTIONS
- --------------------------------------------------------------------------------
ANNUITY DATE
During the Income Phase, the money in your Contract is used to make regular
income payments to you. You may switch to the Income Phase any time after your
second contract anniversary. You select the month and year in which you want
income payments to begin. The first day of that month is the Annuity Date. You
may change your Annuity Date, so long as you do so at least seven days before
the income payments are scheduled to begin. Once you begin receiving income
payments, you cannot change your Income Option. Except as discussed under Option
5, once you begin receiving income payments, you cannot otherwise access your
money through a withdrawal or surrender. Other pay out options may be available.
Contact Our Annuity Service Center for more information.
Income payments must begin on or before your 95th birthday or on your tenth
contract anniversary, whichever occurs later. If you do not choose an Annuity
Date, your income payments will automatically begin on this date (latest Annuity
Date.) Certain states may require your income payments to start earlier.
If the Annuity Date is past your 85th birthday, your contract could lose its
status as an annuity under Federal tax laws. This may cause you to incur adverse
tax consequences. In addition, certain Qualified contracts require you to take
minimum distributions after you reach age 70 1/2. SEE TAXES BELOW.
INCOME OPTIONS
Currently, this Contract offers five Income Options. Other income options may be
available. Please check with the Annuity Service Center for details. If you
elect to receive income payments but do not select an option, your income
payments will be made in accordance with Option 4 for a period of 10 years. For
income payments selected for joint lives, We pay according to Option 3.
We base Our calculation of income payments on the life of the Annuitant and the
annuity rates set forth in your contract. As the contract owner, you may change
the Annuitant at any time prior to the Annuity Date. You must notify Us if the
Annuitant dies before the Annuity Date and then designate a new Annuitant.
OPTION 1 - LIFE INCOME ANNUITY
This option provides income payments for the life of the Annuitant. Income
payments stop when the Annuitant dies.
OPTION 2 - JOINT AND SURVIVOR LIFE ANNUITY
This option provides income payments for the life of the Annuitant and for the
life of another designated person. Upon the death of either person, We will
continue to make income payments during the lifetime of the survivor. Income
payments stop whenever the survivor dies.
26
OPTION 3 - JOINT AND 100% SURVIVOR LIFE ANNUITY WITH 10 OR 20 YEAR PERIOD
CERTAIN
This option is similar to Option 2 above, with an additional guarantee of
payments for at least 10 or 20 years. If the Annuitant and the Survivor die
before all of the payments have been made, the remaining payments are made to
the Beneficiary under your contract.
OPTION 4 - LIFE ANNUITY WITH 10 OR 20 YEAR PERIOD CERTAIN
This option is similar to Option 1 above. In addition, this option provides a
guarantee that income payments will be made for at least 10 or 20 years. You
select the number of years. If the Annuitant dies before all guaranteed income
payments are made, the remaining income payments go to the Beneficiary under
your contract.
OPTION 5 - INCOME FOR A SPECIFIED PERIOD
This option provides income payments for a guaranteed period ranging from 5 to
30 years. If the Annuitant dies before all the guaranteed income payments are
made, the remaining income payments are made to the Beneficiary under your
contract. Additionally, if variable income payments are elected under this
option, you (or the Beneficiary under the contract if the Annuitant dies prior
to all guaranteed payments being made) may redeem the contract value (in full or
in part) after the Annuity Date. The amount available upon such redemption would
be the discounted present value of any remaining guaranteed payments. The value
of an Annuity Unit, regardless of the option chosen, takes into account the
mortality and expense risk charge. Since Option 5 does not contain an element of
mortality risk, no benefit is derived from this charge.
We make income payments on a monthly, quarterly, semi-annual or annual basis.
You instruct Us to send you a check or to have the payments direct deposited
into your bank account. If state law allows, We distribute annuities with a
contract value of $5,000 or less in a lump sum. Also, if the selected income
option results in annuity payments of less than $50 per payment, We may decrease
the frequency of the payments, state law allowing.
ALLOCATION OF ANNUITY PAYMENTS
You can choose income payments that are fixed, variable or both. If payments are
fixed, AIG SunAmerica Life guarantees the amounts of each payment. If the
payments are variable, the amounts are not guaranteed. They will go up and/or
down based upon the performance of the VARIABLE PORTFOLIOS in which you invest.
FIXED OR VARIABLE INCOME PAYMENTS
If at the date when income payments begin you are invested in the VARIABLE
PORTFOLIOS only, your income payments will be variable. If your money is only in
fixed accounts at that time, your income payments will be fixed in amount. If
you are invested in both fixed and variable options at the time you begin the
Income Phase, a portion of your income payments will be fixed and a portion will
be variable.
INCOME PAYMENTS
Your income payments will vary if you are invested in the VARIABLE PORTFOLIOS
after the Annuity date depending on four factors:
- for life options, your age when payments begin, and in most states, if a
Non-qualified contract, your gender; and
- the value of your contract in the VARIABLE PORTFOLIOS on the Annuity
Date,
- the 3.5% assumed investment rate for variable income payments used in the
annuity table for the contract, and;
- the performance of the VARIABLE PORTFOLIOS in which you are invested
during the time you receive income payments.
27
If you are invested in both the fixed account options and the VARIABLE
PORTFOLIOS after the Annuity Date, the allocation of funds between the fixed
accounts and VARIABLE PORTFOLIOS also impacts the amount of your annuity
payments.
The value of variable income payments, if elected, is based on an assumed
interest rate ("AIR") of 3.5% compounded annually. Variable income payments
generally increase or decrease from one income payment date to the next based
upon the performance of the applicable VARIABLE PORTFOLIOS. If the performance
of the VARIABLE PORTFOLIOS selected is equal to the AIR, the income payments
will remain constant. If performance of VARIABLE PORTFOLIOS is greater than the
AIR, the income payments will increase and if it is less than the AIR, the
income payments will decline.
TRANSFERS DURING THE INCOME PHASE
During the Income Phase, one transfer per month is permitted between the
VARIABLE PORTFOLIOS. No other transfers are allowed during the Income Phase.
DEFERMENT OF PAYMENTS
We may defer making fixed payments for up to six months, or less if required by
law. Interest is credited to you during the deferral period. SEE ALSO ACCESS TO
YOUR MONEY ABOVE FOR A DISCUSSION OF WHEN PAYMENTS FROM A VARIABLE PORTFOLIO MAY
BE SUSPENDED OR POSTPONED.
Please read the Statement of Additional Information, available upon request, for
a more detailed discussion of the income options.
INCOME PROTECTOR
You may elect to enroll in the Income Protector Program. The Income Protector
Program offers you the ability to receive a guaranteed fixed minimum retirement
income when you choose to switch to the Income Phase. Income Protector should be
regarded only as a "safety net". If you elect the Income Protector you can know
the level of minimum income that will be available to you upon annuitization,
regardless of fluctuating market conditions. In order to utilize the program,
you must follow the provisions discussed below.
The minimum level of Income Protector benefit available is generally based upon
your Purchase Payments remaining in your contract at the time you decide to
begin taking income. If available and elected, a growth rate can provide
increased levels of minimum guaranteed income. We charge a fee for the Income
Protector benefit. The amount of the fee and levels of income protection
available to you are described below. This feature may not be available in your
state. Once you have made an Income Protector election it can not be changed or
terminated. Check with your financial advisor regarding availability.
You are not required to use the Income Protector to receive income payments. The
general provisions of your contract provide other income options. However, We
will not refund fees paid for the Income Protector if you begin taking income
payments under the general provisions of your contract. In addition, if
applicable, surrender charges will be assessed upon your beginning the Income
Phase, if you annuitize under the Income Protector Program. YOU MAY NEVER NEED
TO RELY UPON INCOME PROTECTOR IF YOUR CONTRACT PERFORMS WITHIN A HISTORICALLY
ANTICIPATED RANGE. HOWEVER, PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
Certain federal tax code restrictions on the income options available to
qualified retirement investors may have an impact on your ability to benefit
from this feature. Qualified investors should read NOTE TO QUALIFIED CONTRACT
HOLDERS, BELOW.
HOW DO WE DETERMINE THE AMOUNT OF YOUR MINIMUM GUARANTEED INCOME?
If you elect the Income Protector Program, We base the amount of minimum
retirement income available to you upon a calculation We call the Income Benefit
Base. At the time your enrollment in the Income Protector program becomes
effective, your Initial Income Benefit Base is equal to your contract value. If
elected, your participation
28
becomes effective on either the date of issue of the contract (if the feature is
elected at the time of application) or on the contract anniversary following
your enrollment in the program.
The Income Benefit Base is only a calculation. It does not represent a contract
value, nor does it guarantee performance of the VARIABLE PORTFOLIOS in which you
invest.
Your Income Benefit Base increases if you make subsequent Purchase Payments and
decreases if you withdraw money from your contract. The exact Income Benefit
Base calculation is equal to (a) plus (b) minus (c) where:
(a) is equal to, for the first year of calculation, your contract value on
the date your participation became effective, and for each subsequent
year of calculation, the Income Benefit Base of your prior contract
anniversary, and;
(b) is equal to the sum of all subsequent Purchase Payments made into the
contract since the prior contract anniversary, and;
(c) is equal to all withdrawals and applicable fees, charges and any
negative MVA (but excluding administration fees, mortality and expense
charges and the fee for enrollment into the program) since the prior
contract anniversary, including premium taxes, in an amount
proportionate to the amount by which such withdrawals decreased your
contract value. Your Income Benefit Base may accumulate at the elected
growth rate, if available, from the date your election becomes
effective through your Income Benefit Date.
Any applicable growth rate will reduce to 0% on the anniversary immediately
after the Annuitant's 90th birthday.
LEVEL OF PROTECTION
If you decide that you want the protection offered by the Income Protector
Program, you must elect the Income Protector by completing the Income Protector
Election form available through Our Annuity Service Center. You may only elect
one of the offered alternatives, if more than one is available, and you can
never change your election once made.
Your Income Benefit Base will begin accumulating at the applicable growth rate
on the contract anniversary following Our receipt of your completed election
form. In order to obtain the benefit of the Income Protector you may not begin
the Income Phase for at least ten years following your election. You may not
elect the Income Protector Program if the required waiting period before
beginning the income phase would occur later than your latest Annuity Date.
The Income Protector option(s) currently available under this contract are:
<Table>
<Caption>
- ----------------------------------------------------------------------------------------------------------------------------------
FEE AS OF % OF YOUR INCOME WAITING PERIOD BEFORE THE
OPTION GROWTH RATE BENEFIT BASE INCOME PHASE
- ----------------------------------------------------------------------------------------------------------------------------------
Income Protector Base 0% 0.10% 10 years
- ----------------------------------------------------------------------------------------------------------------------------------
</Table>
ENROLLING IN THE PROGRAM
If you decide that you want the protection offered by the Income Protector
program, you must elect the Program by completing the Income Protector Election
Form. You can not terminate your enrollment once elected.
ELECTING TO RECEIVE INCOME
You may elect to begin the Income Phase of your contract using the Income
Protector Program only within the 30 days after the 10th or later contract
anniversary following the effective date of your Income Protector participation.
The contract anniversary prior to your election to begin receiving income
payments is your Income Benefit Date. We calculate your Income Benefit Base as
of that date to use in determining your guaranteed minimum fixed retirement
income. To determine the minimum guaranteed retirement income available to you,
We apply your final
29
Income Benefit Base to the annuity rates stated in your Income Protector
endorsement for the income option you select. You then choose if you would like
to receive the income annually, semi-annually, quarterly or monthly for the time
guaranteed under your selected income option. Your final Income Benefit Base is
equal to (a) minus (b) where:
(a) is your Income Benefit Base as of your Income Benefit Date, and;
(b) is any partial withdrawals of contract value and any charges applicable
to those withdrawals (including any negative MVA) and any withdrawal
charges otherwise applicable, calculated as if you fully surrender your
contract as of the Income Benefit Date, and any applicable premium
taxes.
The income options available when using the Income Protector feature to receive
your retirement income are:
- Life Annuity with 10 years guaranteed, or
- Joint and 100% Survivor Life Annuity with 20 years guaranteed
At the time you elect to begin receiving income payments, We will calculate your
income payments using both your Income Benefit Base and your contract value. We
will use the same income option for each calculation; however, the annuity
factors used to calculate your income under the Income Protector feature will be
different. You will receive whichever provides a greater stream of income. If
you elect to receive income payments using the Income Protector feature your
income payments will be fixed in amount.
NOTE TO QUALIFIED CONTRACT HOLDERS
Qualified contracts generally require that you select an income option that does
not exceed your life expectancy. That restriction, if it applies to you, may
limit the benefit of the Income Protector program. To utilize the Income
Protector feature, you must take income payments under one of the two income
options described above. If those income options exceed your life expectancy,
you may be prohibited from receiving your guaranteed fixed income under the
program. If you own a Qualified contract to which this restriction applies and
you elect the Income Protector program, you may pay for this minimum guarantee
and not be able to realize the benefit.
You may wish to consult your tax advisor for information concerning your
particular circumstances. SEE APPENDIX C FOR AN EXAMPLE OF THE OPERATION OF THE
INCOME PROTECTOR FEATURE.
FEES ASSOCIATED WITH THE INCOME PROTECTOR PROGRAM
If you elect to participate in the Income Protector program We deduct an annual
fee equal to 0.10% of your Income Benefit Base from your contract value on each
contract anniversary beginning with the contract anniversary following the
anniversary on which your enrollment in the program becomes effective. We deduct
this charge from your contract value on every contract anniversary up to and
including your Income Benefit Date. Additionally, if you fully surrender your
contract prior to your contract anniversary, We will deduct the fee at the time
of surrender based on your Income Benefit Base as of the surrender date. Once
elected, the Income Protector Program and its corresponding charges may not be
terminated until full surrender or annuitization of the contract occurs.
TAXES
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NOTE: WE PREPARED THE FOLLOWING INFORMATION ON TAXES AS A GENERAL DISCUSSION OF
THE SUBJECT. THIS INFORMATION ADDRESSES GENERAL FEDERAL TAXATION MATTERS, AND
GENERALLY DOES NOT ADDRESS STATE TAXATION ISSUES OR QUESTIONS. IT IS NOT TAX
ADVICE. RECENT TAX LEGISLATION INCLUDED MANY CHANGES THAT COULD AFFECT THE
TAXATION OF INVESTMENT INCOME. YOU MAY WISH TO SEEK COMPETENT TAX ADVICE ABOUT
YOUR OWN CIRCUMSTANCES. WE DO NOT GUARANTEE THE TAX STATUS OF YOUR ANNUITY. TAX
LAWS CONSTANTLY CHANGE, THEREFORE, WE CANNOT GUARANTEE THAT THE INFORMATION
CONTAINED HEREIN IS COMPLETE AND/OR ACCURATE. WE HAVE INCLUDED AN ADDITIONAL
DISCUSSION REGARDING TAXES IN THE SAI.
30
ANNUITY CONTRACTS IN GENERAL
The Internal Revenue Code ("IRC") provides for special rules regarding the tax
treatment of annuity contracts. Generally, taxes on the earnings in your annuity
contract are deferred until you take the money out. Qualified retirement
investments that satisfy specific tax and ERISA requirements automatically
provide tax deferral regardless of whether the underlying contract is an
annuity, a trust, or a custodial account. Different rules apply depending on how
you take the money out and whether your contract is Qualified or Non-Qualified.
If you do not purchase your contract under a pension plan, a specially sponsored
employer program or an individual retirement account, your contract is referred
to as a Non-Qualified contract. A Non-Qualified contract receives different tax
treatment than a Qualified contract. In general, your cost basis in a
Non-Qualified contract is equal to the Purchase Payments you put into the
contract. You have already been taxed on the cost basis in your contract.
If you purchase your contract under a pension plan, a specially sponsored
employer program or as an individual retirement account, your contract is
referred to as a Qualified contract. Examples of qualified plans are: Individual
Retirement Accounts ("IRAs"), Roth IRAs, Tax-Sheltered Annuities (referred to as
403(b) contracts), plans of self-employed individuals (often referred to as H.R.
10 Plans or Keogh Plans) and pension and profit sharing plans, including 401(k)
plans. Typically you have not paid any tax on the Purchase Payments used to buy
your contract and therefore, you have no cost basis in your contract. However,
you normally will have cost basis in a Roth IRA, and you may have cost basis in
a traditional IRA or in another Qualified Contract.
TAX TREATMENT OF DISTRIBUTIONS--NON-QUALIFIED CONTRACTS
If you make a partial or total withdrawal from a Non-Qualified contract, the IRC
treats such a withdrawal as first coming from the earnings and then as coming
from your Purchase Payments. Purchase Payments made prior to August 14, 1982,
however, are an important exception to this general rule, and for tax purposes
are treated as being distributed before the earnings on those contributions. If
you annuitize your contract, a portion of each income payment will be
considered, for tax purposes, to be a return of a portion of your Purchase
Payment(s). Any portion of each income payment that is considered a return of
your Purchase Payment will not be taxed. Withdrawn earnings are treated as
income to you and are taxable. The IRC provides for a 10% penalty tax on any
earnings that are withdrawn other than in conjunction with the following
circumstances: (1) after reaching age 59 1/2; (2) when paid to your Beneficiary
after you die; (3) after you become disabled (as defined in the IRC); (4) when
paid in a series of substantially equal installments made for your life or for
the joint lives of you and you Beneficiary; (5) under an immediate annuity; or
(6) which are attributable to Purchase Payments made prior to August 14, 1982.
TAX TREATMENT OF DISTRIBUTIONS--QUALIFIED CONTRACTS
Generally, you have not paid any taxes on the Purchase Payments used to buy a
Qualified contract. As a result, with certain limited exceptions, any amount of
money you take out as a withdrawal or as income payments is taxable income. The
IRC further provides for a 10% penalty tax on any taxable withdrawal or income
payment paid to you other than in conjunction with the following circumstances:
(1) after reaching age 59 1/2; (2) when paid to your Beneficiary after you die;
(3) after you become disabled (as defined in the IRC); (4) in a series of
substantially equal installments, made for your life or for the joint lives of
you and your Beneficiary, that begins after separation from service with the
employer sponsoring the plan; (5) to the extent such withdrawals do not exceed
limitations set by the IRC for deductible amounts paid during the taxable year
for medical care; (6) to fund higher education expenses (as defined in IRC; only
from an IRA); (7) to fund certain first-time home purchase expenses (only from
an IRA); and, except in the case of an IRA; (8) when you separate from service
after attaining age 55; (9) when paid for health insurance if you are unemployed
and meet certain requirements; and (10) when paid to an alternate payee pursuant
to a qualified domestic relations order.
The IRC limits the withdrawal of an employee's voluntary Purchase Payments to a
Tax-Sheltered Annuity (TSA). Withdrawals can only be made when an owner: (1)
reaches age 59 1/2; (2) severs employment with the employer; (3) dies; (4)
becomes disabled (as defined in the IRC); or (5) experiences a hardship (as
defined in the IRC). In the case of hardship, the owner can only withdraw
Purchase Payments. Additional plan limitations may also
31
apply. Amounts held in a TSA annuity contract as of December 31, 1988 are not
subject to these restrictions. Qualifying transfers of amounts from one TSA
contract to another TSA contract under section 403(b) or to a custodial account
under section 403(b)(7), and qualifying transfers to a state defined benefit
plan to purchase service credits, are not considered distributions, and thus are
not subject to these withdrawal limitations. If amounts are transferred from a
custodial account described in Code section 403(b)(7) to this contract the
transferred amount will retain the custodial account withdrawal restrictions.
Withdrawals from other Qualified Contracts are often limited by the IRC and by
the employer's plan.
MINIMUM DISTRIBUTIONS
Generally, the IRS requires that you begin taking annual distributions from
qualified annuity contracts by April 1 of the calendar year following the later
of (1) the calendar year in which you attain age 70 1/2 or (2) the calendar year
in which you retire. If you own an IRA, you must begin taking distributions when
you attain age 70 1/2, regardless of when you retire. If you own more than one
TSA, you may be permitted to take your annual distributions in any combination
from your TSAs. A similar rule applies if you own more than one IRA. However,
you cannot satisfy this distribution requirement for your TSA contract by taking
a distribution from an IRA, and you cannot satisfy the requirement for your IRA
by taking a distribution from a TSA.
You may be subject to a surrender charge on withdrawals taken to meet minimum
distribution requirements, if the withdrawals exceed the contract's maximum
penalty free amount.
Failure to satisfy the minimum distribution requirements may result in a tax
penalty. You should consult your tax advisor for more information.
You may elect to have the required minimum distribution amount on your contract
calculated and withdrawn each year under the automatic withdrawal option. You
may select either monthly, quarterly, semiannual or annual withdrawals for this
purpose. This service is provided as a courtesy and We do not guarantee the
accuracy of Our calculations. Accordingly, We recommend you consult your tax
advisor concerning your required minimum distribution. You may terminate your
election for automated minimum distribution at any time by sending a written
request to Our Annuity Service Center. We reserve the right to change or
discontinue this service at any time.
TAX TREATMENT OF DEATH BENEFITS
Any death benefits paid under the contract are taxable to the Beneficiary. The
rules governing the taxation of payments from an annuity contract, as discussed
above, generally apply whether the death benefits are paid as lump sum or
annuity payments. Estate taxes may also apply.
Certain enhanced death benefits may be purchased under your contract. Although
these types of benefits are used as investment protection and should not give
rise to any adverse tax effects, the IRS could take the position that some or
all of the charges for these death benefits should be treated as a partial
withdrawal from the contract. In such case, the amount of the partial withdrawal
may be includible in taxable income and subject to the 10% penalty if the owner
is under 59 1/2.
If you own a Qualified contract and purchase these enhanced death benefits, the
IRS may consider these benefits "incidental death benefits." The IRC imposes
limits on the amount of the incidental death benefits allowable for Qualified
contracts. If the death benefit(s) selected by you are considered to exceed
these limits, the benefit(s) could result in taxable income to the owner of the
Qualified contract. Furthermore, the IRC provides that the assets of an IRA
(including a Roth IRA) may not be invested in life insurance, but may provide,
in the case of death during the Accumulation Phase, for a death benefit payment
equal to the greater of Purchase Payments or contract value. This contract
offers death benefits, which may exceed the greater of Purchase Payments or
contract value. If the IRS determines that these benefits are providing life
insurance, the contract may not qualify as an IRA (including Roth IRAs). You
should consult your tax adviser regarding these features and benefits prior to
purchasing a contract.
32
CONTRACTS OWNED BY A TRUST OR CORPORATION
A trust or corporation ("Non-Natural Owner") that is considering purchasing this
contract should consult a tax advisor. Generally, the IRC does not treat a
Non-Qualified contract owned by a non-natural owner as an annuity contract for
Federal income tax purposes. The non-natural owner pays tax currently on the
contract's value in excess of the owner's cost basis. However, this treatment is
not applied to a contract held by a trust or other entity as an agent for a
natural person nor to contracts held by Qualified Plans. See the SAI for a more
detailed discussion of the potential adverse tax consequences associated with
non-natural ownership of a non-qualified annuity contract.
GIFTS, PLEDGES AND/OR ASSIGNMENTS OF A NON-QUALIFIED CONTRACT
If you transfer ownership of your Non-Qualified contract to a person other than
your spouse (or former spouse incident to divorce) as a gift you will pay
federal income tax on the contract's cash value to the extent it exceeds your
cost basis. The recipient's cost basis will be increased by the amount on which
you will pay federal taxes. Also, the IRC treats any assignment or pledge (or
agreement to assign or pledge) of any portion of a Non-Qualified contract as a
withdrawal. See the SAI for a more detailed discussion regarding potential tax
consequences of gifting, assigning or pledging a non-qualified contract.
DIVERSIFICATION AND INVESTOR CONTROL
The IRC imposes certain diversification requirements on the underlying
investments for a variable annuity. We believe that the underlying VARIABLE
PORTFOLIOS' management monitors the VARIABLE PORTFOLIOS so as to comply with
these requirements. To be treated as a variable annuity for tax purposes, the
underlying investments must meet these requirements.
The diversification regulations do not provide guidance as to the circumstances
under which you, and not AIG SunAmerica Life, would be considered the owner of
the shares of the VARIABLE PORTFOLIOS under your Nonqualified Contract, because
of the degree of control you exercise over the underlying investments. This
diversification requirement is sometimes referred to as "investor control." It
is unknown to what extent owners are permitted to select investments, to make
transfers among VARIABLE PORTFOLIOS or the number and type of VARIABLE
PORTFOLIOS owners may select from. If any guidance is provided which is
considered a new position, then the guidance would generally be applied
prospectively. However, if such guidance is considered not to be a new position,
it may be applied retroactively. This would mean you, as the owner of the
Nonqualified Contract , could be treated as the owner of the underlying VARIABLE
PORTFOLIOS. Due to the uncertainty in this area, We reserve the right to modify
the contract in an attempt to maintain favorable tax treatment.
These investor control limitations generally do not apply to Qualified
Contracts, which are referred to as "Pension Plan Contracts" for purposes of
this rule, although the limitations could be applied to Qualified Contracts in
the future.
PERFORMANCE
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From time to time We will advertise the performance of the VARIABLE PORTFOLIOS.
Any such performance results are based on historical earnings and are not
intended to indicate future performance.
We advertise the Cash Management Portfolio's yield and effective yield. In
addition, the other VARIABLE PORTFOLIOS advertise total return, gross yield and
yield-to-maturity. These figures represent past performance of the VARIABLE
PORTFOLIOS. These performance numbers do not indicate future results.
When We advertise performance for periods prior to the date the contracts were
first issued, We derive the figures from the performance of the corresponding
portfolios for the Trusts, if available. We modify these numbers to reflect
charges and expenses as if the VARIABLE PORTFOLIO was in existence during the
period stated in the advertisement. Figures calculated in this manner do not
represent actual historic performance of the particular VARIABLE PORTFOLIOS.
33
We may show performance of each VARIABLE PORTFOLIOS in comparison to various
appropriate indices and the performance of other similar variable annuity
products with similar objectives as reported by such independent reporting
services as Morningstar, Inc., Lipper Analytical Services, Inc. and the Variable
Annuity Research Data Service ("VARDS").
Please see the Statement of Additional Information, available upon request, for
more information regarding the methods used to calculate performance data.
AIG SunAmerica Life may also advertise the rating and other information assigned
to it by independent industry ratings organizations. Some of those organizations
are A.M. Best Company ("A.M. Best"), Moody's Investor's Service ("Moody's"),
Standard & Poor's Insurance Rating Services ("S&P"), and Fitch Ratings
("Fitch"). A.M. Best's and Moody's ratings reflect their current opinion of Our
financial strength and performance in comparison to others in the life and
health insurance industry. S&P's and Fitch's ratings measure the ability of an
insurance company to meet its obligations under insurance policies it issues.
These two ratings do not measure the insurer's ability to meet non-policy
obligations. Ratings in general do not relate to the performance of the VARIABLE
PORTFOLIOS.
OTHER INFORMATION
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AIG SUNAMERICA LIFE
AIG SunAmerica Life is a stock life insurance company originally organized under
the laws of the state of California in April, 1965. On January 1, 1996, AIG
SunAmerica Life redomesticated under the laws of the state of Arizona.
AIG SunAmerica Life and its affiliates, SunAmerica Life Insurance Company, First
SunAmerica Life Insurance Company, AIG SAAMCo and the AIG Advisors Group, Inc.
(comprising six wholly owned broker-dealers and two investment advisors),
specialize in retirement savings and investment products and services. Business
focuses include fixed and variable annuities, mutual funds and broker-dealer
services.
THE SEPARATE ACCOUNT
AIG SunAmerica Life originally established a separate account, Variable Annuity
Account Five (the "Separate Account"), under Arizona law on July 8, 1996. The
Separate Account is registered with the SEC as a unit investment trust under the
Investment Company Act of 1940, as amended.
AIG SunAmerica Life owns the assets in the Separate Account. However, the assets
in the Separate Account are not chargeable with liabilities arising out of any
other business conducted by AIG SunAmerica Life. Income gains and losses
(realized and unrealized) resulting from assets in the Separate Account are
credited to or charged against the Separate Account without regard to other
income, gains or losses of AIG SunAmerica Life. Assets in the Separate Account
are not guaranteed by AIG SunAmerica Life.
THE GENERAL ACCOUNT
Money allocated to the fixed account options goes into AIG SunAmerica Life's
general account. The general account consists of all of AIG SunAmerica Life's
assets other than assets attributable to a separate account. All of the assets
in the general account are chargeable with the claims of any AIG SunAmerica Life
contract holders as well as all of its creditors. The general account funds are
invested as permitted under state insurance laws.
DISTRIBUTION OF THE CONTRACT
Registered representatives of broker-dealers sell the contract. We pay
commissions to these representatives for the sale of the contracts. We do not
expect the total commissions to exceed 4.5% of your Purchase Payments. We may
also pay an annual trail commission of 1.00%, payable quarterly starting as
early as the second contract year. We
34
may also pay a bonus to representatives for contracts which stay active for a
particular period of time, in addition to standard commissions. We do not deduct
commissions paid to registered representatives directly from your Purchase
Payments.
From time to time, We may pay or allow additional promotional incentives in the
form of cash or other compensation. We reserve the right to offer these
additional incentives only to certain broker-dealers, which may or may not be
Our affiliates and/or certain registered representatives that sell or are
expected to sell, certain minimum amounts of the contract, or other contracts
offered by Us. Promotional incentives may change at any time.
AIG SunAmerica Capital Services, Inc., 733 Third Avenue, 4th Floor, New York,
New York 10017 distributes the contracts. AIG SunAmerica Capital Services is an
affiliate of AIG SunAmerica Life, and is a registered as a broker-dealer under
the Exchange Act of 1934 and a member of the National Association of Securities
Dealers, Inc.
No underwriting fees are paid in connection with the distribution of the
contracts.
ADMINISTRATION
We are responsible for the administrative servicing of your contract. Please
contact Our Annuity Service Center at 1-800-445-SUN2, if you have any comment,
question or service request.
We send out transaction confirmations and quarterly statements. During the
Accumulation Phase, you will receive confirmation of transactions within your
contract. Transactions made pursuant to contractual or systematic agreements,
such as dollar cost averaging, may be confirmed quarterly. Purchase Payments
received through the automatic payment plan or a salary reduction arrangement,
may also be confirmed quarterly. For other transactions, we send confirmations
immediately. It is your responsibility to review these documents carefully and
notify Us of any inaccuracies immediately. We investigate all inquiries. To the
extent that We believe We made an error, We retroactively adjust your contract,
provided you notify Us within 30 days of receiving the transaction confirmation
or quarterly statement. Any other adjustments We deem warranted are made as of
the time We receive notice of the error.
LEGAL PROCEEDINGS
There are no pending legal proceedings affecting the Separate Account. AIG
SunAmerica Life engages in various kinds of routine litigation. In management's
opinion these matters are not of material importance to the Company's total
assets.
OWNERSHIP
The Seasons Triple Elite Variable Annuity is a Flexible Payment Group Deferred
Annuity contract. We issue a group contract to a contract holder for the benefit
of the participants in the group. As a participant in the group, you will
receive a certificate which evidences your ownership. As used in this
prospectus, the term contract refers to your certificate. In some states, a
Flexible Payment Individual Modified Guaranteed and Variable Deferred Annuity
contract is available instead. Such a contract is identical to the contract
described in this prospectus, with the exception that We issue it directly to
the owner.
INDEPENDENT ACCOUNTANTS
The consolidated financial statements of AIG SunAmerica Life Assurance Company
(formerly, Anchor National Life Insurance Company) at December 31, 2002 and 2001
and for each of the three years in the period ended December 31, 2002, and the
financial statements of Variable Annuity Account Five at April 30, 2003, and for
each of the two years in the period ended April 30, 2003, are incorporated
herein by reference in this prospectus in reliance on the reports of
PricewaterhouseCoopers LLP, independent accountants, given on the authority of
said firm as experts in auditing and accounting.
35
REGISTRATION STATEMENT
A registration statement has been filed with the SEC under the Securities Act of
1933 relating to the contract. This prospectus does not contain all the
information in the registration statement as permitted by SEC regulations. The
omitted information can be obtained from the SEC's principal office in
Washington, D.C., upon payment of a prescribed fee.
36
TABLE OF CONTENTS OF
STATEMENT OF ADDITIONAL INFORMATION
Additional information concerning the operations of the separate account is
contained in a Statement of Additional Information ("SAI"), which is available
without charge upon written request addressed to Us at Our Annuity Service
Center, P.O. Box 54299, Los Angeles, California 90054-0299 or by calling (800)
445-SUN2. The contents of the SAI are tabulated below.
<Table>
Separate Account............................................ 2
General Account............................................. 2
Performance Data............................................ 3
Annuity Payments............................................ 7
Annuity Unit Values......................................... 7
Taxes....................................................... 10
Distribution of Contracts................................... 14
Financial Statements........................................ 14
</Table>
37
APPENDIX A - MARKET VALUE ADJUSTMENT ("MVA")
- --------------------------------------------------------------------------------
The information in this Appendix applies only if you take money out of a FAGP
(with a duration longer than 1 year) before the end of the guarantee period.
We calculate the MVA by doing a comparison between current rates and the rate
being credited to you in the FAGP. For the current rate We use a rate being
offered by Us for a guarantee period that is equal to the time remaining in the
FAGP from which you seek withdrawal (rounded up to a full number of years). If
We are not currently offering a guarantee period for that period of time, We
determine an applicable rate by using a formula to arrive at a number based on
the interest rates currently offered for the two closest periods available.
Where the MVA is negative, We first deduct the adjustment from any money
remaining in the FAGP. If there is not enough money in the FAGP to meet the
negative deduction, We deduct the remainder from your withdrawal. Where the MVA
is positive, We add the adjustment to your withdrawal amount. If a withdrawal
charge applies, it is deducted before the MVA calculation. The MVA is assessed
on the amount withdrawn less any withdrawal charges.
The MVA is computed by multiplying the amount withdrawn, transferred or taken
under an income option by the following factor:
[[(1+I/(1+J+L)] to the power of N/12] - 1
where:
I is the interest rate you are earning on the money invested in
the FAGP;
J is the interest rate then currently available for the period of
time equal to the number of years remaining in the term you initially agreed to
leave your money in the FAGP;
N is the number of full months remaining in the term you initially
agreed to leave your money in the FAGP; and
L is 0.005 (Some states require a different value. Please see your
contract.)
We do not assess an MVA against withdrawals from an FAGP under the following
circumstances:
- If a withdrawal is made within 30 days after the end of a guarantee
period;
- If a withdrawal is made to pay contract fees and charges;
- To pay a death benefit; and
- Upon beginning an income option, if occurring on the Latest Annuity Date.
EXAMPLES OF THE MVA
The purpose of the examples below is to show how the MVA adjustments are
calculated and may not reflect the Guarantee periods available or Surrender
Charges applicable under your contract.
The examples below assume the following:
(1) You made an initial Purchase Payment of $10,000 and allocated it
to a FAGP at a rate of 5%;
(2) You make a partial withdrawal of $4,000 when 1 1/2 years (18
months) remain in the term you initially agreed to leave your money in the
FAGP (N=18);
(3) You have not made any other transfers, additional Purchase
Payments, or withdrawals; and
(4) Your contract was issued in a state where L = 0.005.
A-1
POSITIVE ADJUSTMENT, NO WITHDRAWAL CHARGE APPLIES
Assume that on the date of withdrawal, the interest rate in effect for new
Purchase Payments in the 1-year FAGP is 3.5% and the 3-year FAGP is 4.5%. By
linear interpolation, the interest rate for the remaining 2 years (1 1/2 years
rounded up to the next full year) in the contract is calculated to be 4%. No
withdrawal charge is reflected in this example, assuming that the Purchase
Payment withdrawn falls within the free look amount.
The MVA factor is
= [[(1+I/(1+J+0.005)] to the power of N/12] - 1
= [[(1.05)/(1.04+0.005)] to the power of 18/12] - 1
= [(1.004785) to the power of 1.5] - 1
= 1.007186 - 1
= + 0.007186
The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:
$4,000 X (+0.007186) = +$28.74
$28.74 represents the positive MVA that would be added to the withdrawal.
NEGATIVE ADJUSTMENT, NO WITHDRAWAL CHARGE APPLIES
Assume that on the date of withdrawal, the interest rate in effect for new
Purchase Payments in the 1-year FAGP is 5.5% and the 3-year FAGP is 6.5%. By
linear interpolation, the interest rate for the remaining 2 years (1 1/2 years
rounded up to the next full year) in the contract is calculated to be 6%. No
withdrawal charge is reflected in this example, assuming that the Purchase
Payment withdrawn falls with the free withdrawal amount.
The MVA factor is
= [[(1+I/(1+J+0.005)] to the power of N/12] - 1
= [[(1.05)/(1.06+0.005)] to the power of 18/12] - 1
= [(0.985915) to the power of 1.5] - 1
= 0.978948 - 1
= - 0.021052
The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:
$4,000 X (-0.021052) = -$84.21
$84.21 represents the negative MVA that will be deducted from the money
remaining in the 3-year FAGP.
POSITIVE ADJUSTMENT, WITHDRAWAL CHARGE APPLIES
Assume that on the date of withdrawal, the interest rate in effect for new
Purchase Payments in the 1-year FAGP is 3.5% and the 3-year FAGP is 4.5%. By
linear interpolation, the interest rate for the remaining 2 years (1 1/2 years
rounded up to the next full year) in the contract is calculated to be 4%. A
withdrawal charge of 6% is reflected in this example, assuming that the Purchase
Payment withdrawn exceeds the free withdrawal amount.
The MVA factor is
= [[(1+I)/(1+J+0.005)] to the power of N/12] - 1
= [[(1.05)/(1.04+0.005)] to the power of 18/12] - 1
= [(1.004785) to the power of 1.5] - 1
= 1.007186 - 1
= + 0.007186
A-2
The requested withdrawal amount, less the withdrawal charge ($4,000 -- 6% =
$3,760) is multiplied by the MVA factor to determine the MVA:
$3,760 X (+0.007186) = +$27.02
$27.02 represents the positive MVA that would be added to the withdrawal.
NEGATIVE ADJUSTMENT, WITHDRAWAL CHARGE APPLIES
Assume that on the date of withdrawal, the interest rate in effect for new
Purchase Payments in the 1-year FAGP is 5.5% and the 3-year FAGP is 6.5%. By
linear interpolation, the interest rate for the remaining 2 years (1 1/2 years
rounded up to the next full year) in the contract is calculated to be 6%. A
withdrawal charge of 6% is reflected in this example, assuming that the Purchase
Payment withdrawn exceeds the free withdrawal amount.
The MVA factor is
= [[(1+I/(1+J+0.005)] to the power of N/12] - 1
= [[(1.05)/(1.06+0.005)] to the power of 18/12] - 1
= [(0.985915) to the power of 1.5] - 1
= 0.978948 - 1
= - 0.021052
The requested withdrawal amount, less the withdrawal charge ($4,000 -- 6% =
$3,760) is multiplied by the MVA factor to determine the MVA:
$3,760 X (-0.021052) = -$79.16
$79.16 represents the negative MVA that would be deducted from the withdrawal.
A-3
APPENDIX B - DEATH BENEFITS FOLLOWING SPOUSAL CONTINUATION
- --------------------------------------------------------------------------------
The term "Continuation Net Purchase Payment" is used frequently to describe the
death benefit options payable to the beneficiary of a Continuing Spouse. We
define Continuation Net Purchase Payment as Net Purchase Payments made as of the
Continuation Date plus any Purchase Payments recorded after the Continuation
Date; and reduced for any withdrawals recorded after the Continuation Date, in
the same proportion that the withdrawal reduced the contract value on the date
of the withdrawal. For the purposes of calculating Continuation Net Purchase
Payments, the amount that equals the contract value on the Continuation Date,
including the Continuation Contribution is considered a Purchase Payment. If the
Continuing Spouse makes no additional Purchase Payments or withdrawals,
Continuation Net Purchase Payments equal the contract value on the Continuation
Date, including the Continuation Contribution. All other capitalized terms have
the meanings defined in the glossary and/or prospectus.
STANDARD DEATH BENEFIT PAYABLE UPON CONTINUING SPOUSE'S DEATH
I. If the Standard Death Benefit is applicable upon the Continuing Spouse's
death and a Continuation Contribution was made We will pay the beneficiary
the greater of:
1. Continuation Net Purchase Payments compounded at a 3% annual growth
rate from the Continuation Date until the earlier of age 75 or the
date of death of the Continuing Spouse, plus any Purchase Payments
recorded after the earlier of age 75 or the date of death of the
Continuing Spouse; and reduced for any withdrawals recorded after
the earlier of age 75 or the date of death, in the same proportion
that the withdrawal reduced the contract value on the date of the
withdrawal.
2. The contract value on the date We receive all required paperwork
and satisfactory proof of death.
II. If the Standard Death Benefit is applicable upon the Continuing Spouse's
death and no Continuation Contributions was made, We will pay the
beneficiary the greater of:
1. Net Purchase Payments compounded at a 3% annual growth rate from
the date of issue until the earlier of age 75 or the date of death,
plus any Purchase Payments recorded after the earlier of age 75 or
the date of death; and reduced for any withdrawals recorded after
the earlier of age 75 or the date of death, in the same proportion
that the withdrawal reduced the contract value on the date of
withdrawal.
2. The contract value on the date We receive all required paperwork
and satisfactory proof of death.
SEASONS ESTATE ADVANTAGE DEATH BENEFIT PAYABLE UPON CONTINUING SPOUSE'S DEATH
If Seasons Estate Advantage is applicable upon the Continuing Spouse's death, We
will pay the Beneficiary the applicable death benefit under Option 1 or 2.
OPTION 1 - 5% ACCUMULATION:
I. If the 5% Accumulation Option is selected and a Continuation Contribution
was made the death benefit is the greater of:
a. The contract value on the date We receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
b. Continuation Net Purchase Payments made from the Continuation Date
including the Continuation Contribution, compounded to the earlier
of the Continuing Spouse's 80th birthday or the date of death at a
5% annual growth rate, plus any Purchase Payments recorded after
the 80th birthday or the date of death; and reduced for any
withdrawals recorded after the 80th birthday or the date of death,
in the same proportion that the withdrawal reduced the contract
value on the date of the withdrawal, up to a maximum benefit of two
times the Continuation Net Purchase Payments.
B-1
II. If 5% Accumulation Option is selected and no Continuation Contribution was
made:
a. The contract value on the date We receive all required paperwork
and satisfactory proof of Continuing Spouse's death; or
b. Net Purchase Payments made from the date of issue compounded to the
earlier of the Continuing Spouse's 80th birthday or the date of
death at a 5% annual growth rate, plus any Purchase Payments
recorded after the 80th birthday or the date of death; and reduced
for any withdrawals recorded after the 80th birthday or the date of
death, in the same proportion that the withdrawal reduced the
contract value on the date of the withdrawal, up to a maximum of
two times the Net Purchase Payments.
If the Continuing Spouse dies after the latest Annuity Date and the 5%
Accumulation option applied, any death benefit payable under the contract will
be the Standard Death Benefit as described above. The Continuing Spouse's
beneficiary will not receive any benefit from Seasons Estate Advantage.
OPTION 2 - MAXIMUM ANNIVERSARY VALUE:
III. If the Maximum Anniversary Value option is selected and if the Continuing
Spouse is younger than age 90 at the time of death and a Continuation
Contribution was made, the death benefit is the greatest of:
a. Continuation Net Purchase Payments; or
b. The contract value on the date We receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
c. The maximum anniversary value on any contract anniversary (of the
original issue date) occurring after the Continuation Date but
prior to the Continuing Spouse's 81st birthday. The anniversary
value equals the value on the contract anniversary plus any
Purchase Payments recorded after that anniversary; and reduced for
any withdrawals recorded after that anniversary, in the same
proportion that the withdrawal reduced the contract value on the
date of the withdrawal.
IV. If the Maximum Anniversary Value option is selected and no Continuation
Contribution was made the death benefit is the greatest of:
a. Net Purchase Payments; or
b. The contract value on the date We receive all required paperwork
and satisfactory proof of the Continuing Spouse's death; or
c. The maximum anniversary value on any contract anniversary (of the
original issue date) occurring after the issue date but before the
Continuing Spouse's 81st birthday. The anniversary value equals the
value on the contract anniversary plus any Purchase Payments
recorded after that anniversary; and reduced for any withdrawals
recorded after that anniversary, in the same proportion that the
withdrawal reduced the contract value on the date of the
withdrawal.
If the Continuing Spouse is age 90 or older at the time of death and the Maximum
Anniversary Value option applied, the death benefit will be equal to the
contract value at the time We receive all required paperwork and satisfactory
proof of death. The Continuing Spouse's beneficiary will not receive any benefit
from Seasons Estate Advantage. However, the Continuing Spouse's beneficiary may
still receive a benefit from Earnings Advantage if the date of death is prior to
the latest annuity date.
EARNINGS ADVANTAGE BENEFIT FOR SPOUSAL CONTINUATION:
The Earnings Advantage benefit may increase the death benefit amount. The
Earnings Advantage benefit is only available if the original owner elected
Earnings Advantage and it has not been discontinued or terminated. If the
Continuing Spouse had earnings in the contract at the time of his/her death, We
will add a percentage of those earnings (the "Earnings Advantage Percentage"),
subject to a maximum dollar amount (the "Maximum Earnings Advantage
Percentage"), to the death benefit payable.
B-2
The Contract Year of Death (from Continuation Date forward) will determine the
Earnings Advantage Percentage and the Maximum Earnings Advantage amount, as set
forth below:
<Table>
<Caption>
- --------------------------------------------------------------------------------------------
EARNINGS ADVANTAGE
CONTRACT YEAR OF DEATH PERCENTAGE MAXIMUM EARNINGS ADVANTAGE PERCENTAGE
- --------------------------------------------------------------------------------------------
Years 0 - 4 25% of earnings 25% of Continuation Net Purchase Payments
- --------------------------------------------------------------------------------------------
Years 5 - 9 40% of earnings 40% of Continuation Net Purchase Payments*
- --------------------------------------------------------------------------------------------
Years 10+ 50% of earnings 50% of Continuation Net Purchase Payments*
- --------------------------------------------------------------------------------------------
</Table>
* PURCHASE PAYMENTS RECEIVED AFTER THE 5TH CONTRACT ANNIVERSARY MUST REMAIN IN
THE CONTRACT FOR AT LEAST SIX FULL MONTHS AT THE TIME OF YOUR DEATH TO BE
INCLUDED AS PART OF CONTINUATION NET PURCHASE PAYMENTS FOR PURPOSES OF THE
MAXIMUM EARNINGS ADVANTAGE CALCULATION.
What is the Contract Year of Death?
Contract Year of Death is the number of full 12 month periods starting on the
Continuation Date and ending on the Continuing Spouse's date of death.
What is the Earnings Advantage amount?
We determine the Earnings Advantage amount based upon a percentage of earnings
in the contract at the time of the Continuing Spouse's death. For the purpose of
this calculation, earnings are defined as (1) minus (2) where
(1) equals the contract value on the Continuing Spouse's date of death;
(2) equals the Continuation Net Purchase Payment(s).
What is the Maximum Earnings Advantage amount?
The Earnings Advantage amount is subject to a maximum. The Maximum Earnings
Advantage amount is a percentage of the Continuation Net Purchase Payments.
The Earnings Advantage benefit will only be paid if the Continuing Spouse's date
of death is prior to the latest Annuity Date.
WE RESERVE THE RIGHT TO MODIFY, SUSPEND OR TERMINATE THE SPOUSAL CONTINUATION
PROVISION (IN ITS ENTIRETY OR ANY COMPONENT) AT ANY TIME.
B-3
APPENDIX C - HYPOTHETICAL EXAMPLE OF THE OPERATION OF THE INCOME PROTECTOR
- --------------------------------------------------------------------------------
This table assumes a $100,000 initial investment in a Non-qualified contract the
election of the optional Income Protector program at contract issue, with no
withdrawals, additional payments or premium taxes, no election of Seasons Estate
Advantage or Earnings Advantage.
<Table>
- ------------------------------------------------------------------------------------------------
ANNUAL INCOME IF YOU ANNUITIZE ON THE FOLLOWING CONTRACT ANNIVERSARIES:
IF AT ISSUE YOU 10 11 12 15 19 20
ARE . . . 1-9 (AGE 70) (AGE 71) (AGE 72) (AGE 75) (AGE 79) (AGE 80)
- ------------------------------------------------------------------------------------------------
Male (M), Age 60* N/A 6,672 6,864 7,080 7,716 8,616 8,832
- ------------------------------------------------------------------------------------------------
Female (F), Age 60* N/A 5,880 6,060 6,252 6,900 7,860 8,112
- ------------------------------------------------------------------------------------------------
M and F, Age 60** N/A 5,028 5,136 5,244 5,544 5,868 5,928
- ------------------------------------------------------------------------------------------------
</Table>
* Life Annuity with 10 Year Period Certain
** Joint and 100% Survivor Annuity with 20 Year Period Certain
The Income Protector program may not be available in all states. Check with your
financial advisor for availability in your state.
We reserve the right to modify, suspend or terminate the program at any time for
prospectively issued contracts.
C-1
APPENDIX D - CONDENSED FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
FISCAL YEAR
STRATEGIES INCEPTION TO 4/30/02 ENDING 4/30/03
- -------------------------------------------------------- -------------------- --------------
- -----------------------------------------------------------------------------------------------------
Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 15.202 14.480
(b) 15.202 14.469
Ending AUV............................................ (a) 14.480 12.807
(b) 14.469 12.731
Ending Number of AUs.................................. (a) 34,143 204,828
(b) 19,273 112,268
- -----------------------------------------------------------------------------------------------------
Moderate Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 14.827 14.158
(b) 14.827 14.125
Ending AUV............................................ (a) 14.158 12.808
(b) 14.125 12.728
Ending Number of AUs.................................. (a) 83,099 378,604
(b) 68,214 371,335
- -----------------------------------------------------------------------------------------------------
Balanced Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 14.159 13.679
(b) 14.159 13.699
Ending AUV............................................ (a) 13.679 12.837
(b) 13.699 12.801
Ending Number of AUs.................................. (a) 91,728 477,296
(b) 64,966 173,393
- -----------------------------------------------------------------------------------------------------
Conservative Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 13.662 13.528
(b) 13.662 13.515
Ending AUV............................................ (a) 13.528 13.111
(b) 13.515 13.046
Ending Number of AUs.................................. (a) 22,358 383,364
(b) 25,766 223,464
- -----------------------------------------------------------------------------------------------------
</Table>
AUV-Accumulation Unit Value
AU-Accumulation Units
(a) Without election of Estate Advantage
(b) With election of Estate Advantage
D-1
<Table>
<Caption>
FISCAL YEAR
FOCUSED PORTFOLIOS INCEPTION TO 4/30/02 ENDING 4/30/03
- -------------------------------------------------------- -------------------- --------------
- -----------------------------------------------------------------------------------------------------
Focus Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 6.898 6.590
(b) 6.898 6.571
Ending AUV............................................ (a) 6.590 5.585
(b) 6.571 5.547
Ending Number of AUs.................................. (a) 12,042 220,869
(b) 16,100 41,931
- -----------------------------------------------------------------------------------------------------
Focus Growth & Income (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 8.377 8.546
(b) 8.377 8.515
Ending AUV............................................ (a) 8.546 7.465
(b) 8.515 7.408
Ending Number of AUs.................................. (a) 3,960 113,993
(b) 10,118 27,407
- -----------------------------------------------------------------------------------------------------
Focus Value (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 11.042 10.687
(b) 11.042 10.654
Ending AUV............................................ (a) 10.687 9.366
(b) 10.654 9.298
Ending Number of AUs.................................. (a) 1,916 103,476
(b) 15,685 50,214
- -----------------------------------------------------------------------------------------------------
Focus TechNet (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 4.447 3.305
(b) 4.447 3.295
Ending AUV............................................ (a) 3.305 2.802
(b) 3.295 2.782
Ending Number of AUs.................................. (a) 18,283 133,469
(b) 13,502 61,135
- -----------------------------------------------------------------------------------------------------
</Table>
AUV-Accumulation Unit Value
AU-Accumulation Units
(a) Without election of Estate Advantage
(b) With election of Estate Advantage
D-2
<Table>
<Caption>
FISCAL YEAR
SELECT PORTFOLIOS INCEPTION TO 4/30/02 ENDING 4/30/03
- -------------------------------------------------------- -------------------- --------------
- -----------------------------------------------------------------------------------------------------
Large-Cap Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 8.809 7.945
(b) 8.809 7.928
Ending AUV............................................ (a) 7.945 6.809
(b) 7.928 6.767
Ending Number of AUs.................................. (a) 13,659 226,901
(b) 9,172 57,652
- -----------------------------------------------------------------------------------------------------
Large-Cap Composite (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 9.427 8.878
(b) 9.427 8.881
Ending AUV............................................ (a) 8.878 7.448
(b) 8.881 7.419
Ending Number of AUs.................................. (a) 1,625 73,580
(b) 4,540 18,823
- -----------------------------------------------------------------------------------------------------
Large-Cap Value (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 11.667 11.035
(b) 11.667 10.998
Ending AUV............................................ (a) 11.035 9.202
(b) 10.998 9.134
Ending Number of AUs.................................. (a) 11,012 234,656
(b) 7,302 56,584
- -----------------------------------------------------------------------------------------------------
Mid-Cap Growth (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 12.464 12.246
(b) 12.464 12.243
Ending AUV............................................ (a) 12.246 10.279
(b) 12.243 10.235
Ending Number of AUs.................................. (a) 6,322 144,167
(b) 5,370 35,880
- -----------------------------------------------------------------------------------------------------
Mid-Cap Value (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 14.322 14.768
(b) 14.322 14.735
Ending AUV............................................ (a) 14.768 12.416
(b) 14.735 12.337
Ending Number of AUs.................................. (a) 3,389 102,439
(b) 5,208 46,297
- -----------------------------------------------------------------------------------------------------
Small-Cap (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 10.301 10.507
(b) 10.301 10.477
Ending AUV............................................ (a) 10.507 8.121
(b) 10.477 8.065
Ending Number of AUs.................................. (a) 5,767 150,877
(b) 5,097 43,578
- -----------------------------------------------------------------------------------------------------
</Table>
AUV-Accumulation Unit Value
AU-Accumulation Units
(a) Without election of Estate Advantage
(b) With election of Estate Advantage
D-3
<Table>
<Caption>
FISCAL YEAR
SELECT PORTFOLIOS INCEPTION TO 4/30/02 ENDING 4/30/03
- -------------------------------------------------------- -------------------- --------------
- -----------------------------------------------------------------------------------------------------
International Equity (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 7.896 7.764
(b) 7.896 7.786
Ending AUV............................................ (a) 7.764 5.826
(b) 7.786 5.820
Ending Number of AUs.................................. (a) 3,862 271,634
(b) 261 22,345
- -----------------------------------------------------------------------------------------------------
Diversified Fixed Income (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 10.767 10.648
(b) 10.767 10.621
Ending AUV............................................ (a) 10.648 11.434
(b) 10.621 11.361
Ending Number of AUs.................................. (a) 6,446 380,308
(b) 1,259 174,520
- -----------------------------------------------------------------------------------------------------
Cash Management (Inception Date: 12/10/01)
Beginning AUV......................................... (a) 10.855 10.856
(b) 10.855 10.829
Ending AUV............................................ (a) 10.856 10.758
(b) 10.829 10.690
Ending Number of AUs.................................. (a) 1,727 285,550
(b) 456 55,443
- -----------------------------------------------------------------------------------------------------
</Table>
AUV-Accumulation Unit Value
AU-Accumulation Units
(a) Without election of Estate Advantage
(b) With election of Estate Advantage
D-4
- --------------------------------------------------------------------------------
Please forward a copy (without charge) to the Seasons Triple Elite Variable
Annuity Statement of Additional Information to:
(Please print or type and fill in all information.)
------------------------------------------------------------------
Name
------------------------------------------------------------------
Address
------------------------------------------------------------------
City/State/Zip
------------------------------------------------------------------
Date: ____________ Signed: ______________________________________
Return to: AIG SunAmerica Life Insurance Company, Annuity Service Center, P.O.
Box 52499, Los Angeles, California 90054-0299
- --------------------------------------------------------------------------------
PART II
-------
Information Not Required in Prospectus
Item 14. Other Expenses of Issuance and Distribution.
-------------------------------------------
The following table sets forth the expenses in connection with the issuance
and distribution of the securities being registered, other than underwriting
discounts and commissions. All of the amounts shown are estimates, except the
SEC registration fee.
<Table>
SEC registration fee ................................. $ 4,600
Printing and engraving ............................... $50,000
Legal fees and expenses .............................. $10,000
Rating agency fees ................................... $ 7,500
Miscellaneous ........................................ $10,000
-------
Total ............................................ $82,100
</Table>
Item 15. Indemnification of Directors and Officers.
------------------------------------------
Section 10-851 of the Arizona Corporations and Associations law permits the
indemnification of directors, officers, employees and agents of Arizona
corporations. Article Eight of the Company's Restated Articles of Incorporation,
as amended and restated (the "Articles") and Article Five of the Company's
By-Laws ("By-Laws") authorize the indemnification of directors and officers to
the full extent required or permitted by the Laws of the State of Arizona, now
or hereafter in force, whether such persons are serving the Company, or, at its
request, any other entity, which indemnification shall include the advance of
expenses under the procedures and to the full extent permitted by law. In
addition, the Company's officers and directors are covered by certain directors'
and officers' liability insurance policies maintained by the Company's parent.
Reference is made to section 10-851 of the Arizona Corporations and Associations
Law, Article Eight of the Articles, and Article Five of the By-Laws, which are
incorporated herein by reference.
Item 16. Exhibits and Financial Statement Schedules.
-------------------------------------------
<Table>
<Caption>
Exhibit
No. Description
(1) Underwriting Agreement ***
(2) Plan of Acquisition, Reorganization, Arrangement,
Liquidation or Succession **
(3) (a) Amended Articles of Incorporation Dated
September 30, 2002 +++
(b) Articles of Incorporation +++
(c) By-Laws +++
(4) (a) Vista Capital Advantage Fixed and Variable Contract ***
(b) Application for Contract ***
(5) Opinion of Counsel re: Legality ***
(6) Opinion re Discount on Capital Shares **
(7) Opinion re Liquidation Preference **
(8) Opinion re Tax Matters **
(9) Voting Trust Agreement **
(10) Material Contracts **
(11) Statement re Computation of Per Share Earnings **
(12) Statement re Computation of Ratios **
(14) Material Foreign Patents **
(15) Letter re Unaudited Financial Information **
(16) Letter re Change in Certifying Accountant **
(21) Subsidiaries of Registrant ***
(23) (a) Consent of Independent Accountants *
(b) Consent of Attorney ***
(24) Powers of Attorney ++
(25) Statement of Eligibility of Trustee **
(26) Invitation for Competitive Bids **
(27) Financial Data Schedule ****
(28) Information Reports Furnished to State Insurance
Regulatory Authority **
(29) Other Exhibits **
</Table>
* Filed Herewith
** Not Applicable
*** Incorporated by Reference to Post-Effective Amendment No. 3 to
Registration Statement No. 33-81476 on Form S-1 filed on 12-24-97.
**** Incorporated by Reference to Post-Effective Amendment No. 5 to
Registration Statement No. 33-81476 on Form S-1 filed on 12-24-98.
***** Incorporated by Reference to Post-Effective Amendment No. 9 to
Registration Statement No. 33-81476 on Form S-3 filed on December 19,
2000.
+ Incorporated by Reference to Post-Effective Amendment 17 to Registration
Statement No. 33-81476 on Form S-3 filed on September 20, 2002,
accession number 0000950148-02-002275.
++ Incorporated by Reference to Initial Registration Statement No.
333-103504 on Form S-3 filed on December 20, 2002, Accession Number
000095014-03-000424.
+++ Incorporated by Reference to Post-Effective Registration Amendment 1 to
Registration Statement No. 333-103504 on Form S-3 filed on May 1, 2003
accession number 0000950148-03-001099.
Item 17. Undertakings.
------------
The undersigned registrant, AIG SunAmerica Life, hereby
undertakes:
(1) To file, during any period in which offers or sales are being
made, a post-effective amendment to this registration statement
to include any material information with respect to the plan of
distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;
(2) That, for the purpose of determining any liability under the
Securities Act of 1933, each post-effective amendment shall be
deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide offering
thereof; and
(3) To remove from registration by means of a post-effective
amendment any of the securities being registered which remain
unsold at the termination of the offering.
(4) That, for purposes of determining any liability under the
Securities Act of 1933, each filing of the registrant's annual
report pursuant to Section 13(a) or Section 15(d) of the
Securities Exchange Act of 1934 and, where applicable, each
filing of an employee benefit plan's annual report pursuant to
Section 15(d) of the Securities Exchange Act of 1934) that is
incorporated by reference in the registration statement shall be
deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities
at that time shall be deemed to be the initial bona fide
offering thereof.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing on Form S-3 and has duly caused this
Post-Effective Amendment 2 to the registration statement No. 333-103504 to be
signed on its behalf by the undersigned, thereunto duly authorized, in the City
of Los Angeles, State of California on this 18th day of July, 2003.
By: AIG SUNAMERICA LIFE ASSURANCE COMPANY
By: /s/ JAY S. WINTROB
---------------------------------------
Jay S. Wintrob
Chief Executive Officer
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed by the following persons in the
capacities and on the dates indicated.
SIGNATURE TITLE DATE
--------- ----- ----
JAY S. WINTROB* Chief Executive Officer July 18, 2003
- ----------------------- and Director
Jay S. Wintrob (Principal Executive Officer)
JAMES R. BELARDI* Director July 18, 2003
- -----------------------
James R. Belardi
MARC H. GAMSIN* Director July 18, 2003
- -----------------------
Marc H. Gamsin
N. SCOTT GILLIS* Senior Vice President and July 18, 2003
- ----------------------- Director
N. Scott Gillis (Principal Financial Officer)
JANA W. GREER* Director July 18, 2003
- -----------------------
Jana W. Greer
MAURICE HEBERT* Vice President and July 18, 2003
- ----------------------- Controller
Maurice Hebert (Principal Accounting Officer)
*/s/ MALLARY L. REZNIK Attorney-in-Fact July 18, 2003
- -----------------------
Mallary L. Reznik
EXHIBIT INDEX
Number Description
- ------ -----------
23(a) Consent of Independent Accountants