Filed with the Securities and Exchange Commission on April 18, 2005
Registration No. 333-24989
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form S-3
Post-effective Amendment No. 10
Registration Statement Under The Securities Act of 1933*
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
(Exact name of registrant as specified in its charter)
CONNECTICUT
(State or other jurisdiction of incorporation or organization)
63
(Primary Standard Industrial Classification Code Number)
06-1241288
(I.R.S. Employer Identification No.)
ONE CORPORATE DRIVE, SHELTON, CONNECTICUT 06484 (203) 926-1888
(Address, including zip code, and telephone number, including area code, of
registrant's principal executive offices)
TIMOTHY P. HARRIS, CHIEF LEGAL OFFICER
ONE CORPORATE DRIVE, SHELTON, CONNECTICUT 06484
(203) 926-1888 (Name, address, including zip code, and telephone
number, including area code, of agent for service)
Copy To:
ROBIN WAGNER, ESQ.
VICE PRESIDENT AND CORPORATE COUNSEL
One Corporate Drive, Shelton, Connecticut 06484 (203) 925-7176
Approximate date of commencement of proposed
sale to the public: May 2, 2005, or as soon as practicable
after the effective date of this Registration Statement
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 check the following: X .
Calculation of Registration Fee
====================================================================================================================================
Title of each Proposed Proposed
class of maximum maximum
securities Amount offering aggregate Amount of
to be to be price offering registration
registered registered per unit price** fee
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Market Value Adjusted
Annuity Contracts $-0- $-0-
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*Pursuant to Rule 429 under the Securities Act of 1934, the prospectus contained
in this Registration Statement also relates to annuity contracts which are
covered by our earlier Registration Statement File Number 333-08743 which we
continue to sell.
- --------------------------------------------------------------------------------
**The proposed aggregate offering price is estimated solely for determining the
registration fee. The amount to be registered and the proposed maximum offering
price per unit are not applicable since these securities are not issued in
predetermined amounts or units.
================================================================================
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CHC2
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
A Prudential Financial Company
One Corporate Drive, Shelton, Connecticut 06484
AMERICAN SKANDIA ADVISORS CHOICE(R)2000
Flexible Premium Deferred Annuity
PROSPECTUS: MAY 2, 2005
This Prospectus describes Advisors Choice(R) 2000, a flexible premium deferred
annuity (the "Annuity") offered by American Skandia Life Assurance Corporation
("American Skandia", "we", "our" or "us"). The Annuity may be offered as an
individual annuity contract or as an interest in a group annuity. This
Prospectus describes the important features of the Annuity and what you should
consider before purchasing the Annuity. THE ANNUITY OR CERTAIN OF ITS INVESTMENT
OPTIONS AND/OR FEATURES MAY NOT BE AVAILABLE IN ALL STATES. VARIOUS RIGHTS AND
BENEFITS MAY DIFFER BETWEEN STATES TO MEET APPLICABLE LAWS AND/OR REGULATIONS.
FOR MORE INFORMATION ABOUT VARIATIONS APPLICABLE TO YOUR STATE, PLEASE REFER TO
YOUR ANNUITY CONTRACT OR CONSULT YOUR INVESTMENT PROFESSIONAL. Certain terms are
capitalized in this Prospectus. Those terms are either defined in the Glossary
of Terms or in the context of the particular section.
American Skandia offers several different annuities which your investment
professional may be authorized to offer to you. Each annuity has different
features and benefits that may be appropriate for you based on your financial
situation, your age and how you intend to use the annuity. The different
features and benefits include variations in death benefit protection and the
ability to access your annuity's account value and the charges that you will be
subject to if you choose to surrender the annuity. The fees and charges you pay
and compensation paid to your Investment Professional may also be different
between each annuity.
THE VARIABLE INVESTMENT OPTIONS
The variable investment options, each a Sub-account of American Skandia Life
Assurance Corporation Variable Account B, invest in an underlying mutual fund
portfolio. Currently, portfolios of the following underlying mutual funds are
being offered: American Skandia Trust, Gartmore Variable Investment Trust, Wells
Fargo Variable Trust, Rydex Variable Trust, A I M Advisors, Inc., Evergreen
Variable Annuity Trust, ProFunds VP, First Defined Portfolio Fund LLC and The
Prudential Series Fund, Inc.
PLEASE READ THIS PROSPECTUS
PLEASE READ THIS PROSPECTUS AND THE CURRENT PROSPECTUS FOR THE UNDERLYING MUTUAL
FUNDS. KEEP THEM FOR FUTURE REFERENCE. If you are purchasing the Annuity as a
replacement for existing variable annuity or variable life coverage, you should
consider any surrender or penalty charges you may incur when replacing your
existing coverage.
AVAILABLE INFORMATION
We have also filed a Statement of Additional Information that is available from
us, without charge, upon your request. The contents of the Statement of
Additional Information are described on page 94.
This Prospectus is part of the registration statement we filed with the SEC
regarding this offering. Additional information on us and this offering is
available in the registration statement and the exhibits thereto. You may review
and obtain copies of these materials at the prescribed rates from the SEC's
Public Reference Section, 450 Fifth Street N.W., Washington, D.C., 20549. These
documents, as well as documents incorporated by reference, may also be obtained
through the SEC's Internet Website (http://www.sec.gov) for this registration
statement as well as for other registrants that file electronically with the
SEC.
FOR FURTHER INFORMATION CALL:
====> 1-800-752-6342
THESE ANNUITIES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR ISSUED, GUARANTEED OR
ENDORSED BY, ANY BANK, ARE NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT, THE
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), THE FEDERAL RESERVE BOARD OR ANY
OTHER AGENCY. AN INVESTMENT IN THIS ANNUITY INVOLVES INVESTMENT RISKS, INCLUDING
POSSIBLE LOSS OF VALUE, EVEN WITH RESPECT TO AMOUNTS ALLOCATED TO THE AST MONEY
MARKET SUB-ACCOUNT.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION NOR HAS THE COMMISSION OR
ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS
PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
American Skandia Advisors Choice(R) 2000 is a Service Mark of the Prudential
Financial Company of America.
Prospectus Dated: May 2, 2005 Statement of Additional Information Dated: May 2, 2005
CH2PROS505 CHOICE2000
PLEASE SEE OUR PRIVACY POLICY AND IRA DISCLOSURE STATEMENT
ATTACHED TO THE BACK COVER OF THIS PROSPECTUS.
CONTENTS
Introduction ............................................................................. 1
Why Would I Choose to Purchase This Annuity? ........................................... 1
What Are Some of the Key Features of This Annuity? ..................................... 1
How Do I Purchase This Annuity? ........................................................ 1
Glossary of Terms ........................................................................ 2
Summary of Contract Fees and Charges ..................................................... 3
Expense Examples ......................................................................... 11
Investment Options ....................................................................... 12
What Are the Investment Objectives and Policies of the Portfolios? ..................... 12
What Are the Fixed Allocations? ........................................................ 29
Fees and Charges ......................................................................... 30
What Are the Contract Fees and Charges? ................................................ 30
What Charges Apply Solely to the Variable Investment Options? .......................... 31
What Fees and Expenses Are Incurred by the Portfolios? ................................. 31
What Charges Apply to the Fixed Allocations? ........................................... 31
What Charges Apply if I Choose an Annuity Payment Option? .............................. 31
Exceptions/Reductions to Fees and Charges .............................................. 32
Purchasing Your Annuity .................................................................. 33
What are Our Requirements for Purchasing the Annuity? .................................. 33
Managing Your Annuity .................................................................... 34
May I Change the Owner, Annuitant and Beneficiary Designations? ........................ 34
May I Return the Annuity if I Change My Mind? .......................................... 34
May I Make Additional Purchase Payments? ............................................... 34
May I Make Scheduled Payments Directly from My Bank Account? ........................... 34
May I Make Purchase Payments Through a Salary Reduction Program? ....................... 35
Managing Your Account Value .............................................................. 36
How and When Are Purchase Payments Invested? ........................................... 36
Are There Restrictions or Charges on Transfers Between Investment Options? ............. 36
Do You Offer Dollar Cost Averaging? .................................................... 37
Do You Offer Any Automatic Rebalancing Programs? ....................................... 38
Are Any Asset Allocation Programs Available? ........................................... 38
Do You Offer Programs Designed to Guarantee a "Return of Premium" at a Future Date? .... 39
May I Give My Investment Professional Permission to Manage My Account Value? ........... 40
May I Authorize My Third Party Investment Advisor to Manage My Account? ................ 40
How Do the Fixed Allocations Work? ..................................................... 41
How Do You Determine Rates for Fixed Allocations? ...................................... 42
How Does the Market Value Adjustment Work? ............................................. 42
What Happens When My Guarantee Period Matures? ......................................... 43
Access To Account Value .................................................................. 44
What Types of Distributions Are Available to Me? ....................................... 44
Are There Tax Implications for Distributions? .......................................... 44
Can I Withdraw a Portion of My Annuity? ................................................ 44
Can I Make Periodic Withdrawals from the Annuity During the Accumulation Period? ....... 44
Do You Offer a Program for Withdrawals Under Section 72(t) of the Internal Revenue
Code? .................................................................................. 45
What Are Minimum Distributions and When Would I Need to Make Them? ..................... 45
Can I Surrender My Annuity for Its Value? .............................................. 45
What Types of Annuity Options Are Available? ........................................... 45
How and When Do I Choose the Annuity Payment Option? ................................... 47
How are Annuity Payments Calculated? ................................................... 47
(i)
Contents
Living Benefit Programs ............................................................. 49
Do You Offer Programs Designed to Provide Investment Protection for Owners
While They are Alive? ........................................................... 49
Guaranteed Return Option Plus(SM) (GRO PlusSM) .................................... 50
Guaranteed Return Option (GRO) .................................................... 55
Guaranteed Minimum Withdrawal Benefit (GMWB) ...................................... 58
Guaranteed Minimum Income Benefit (GMIB) .......................................... 62
Lifetime Five Income Benefit (Lifetime Five) ...................................... 66
Death Benefit ....................................................................... 72
What Triggers the Payment of a Death Benefit? ..................................... 72
Basic Death Benefit ............................................................... 72
Optional Death Benefits ........................................................... 72
Payment of Death Benefits ......................................................... 76
Valuing Your Investment ............................................................. 79
How is My Account Value Determined? ............................................... 79
What is the Surrender Value of My Annuity? ........................................ 79
How and When Do You Value the Sub-Accounts? ....................................... 79
How Do You Value Fixed Allocations? ............................................... 79
When Do You Process and Value Transactions? ....................................... 79
What Happens to My Units When There is a Change in Daily Asset-Based Charges? ..... 81
Tax Considerations .................................................................. 82
General Information ................................................................. 89
How Will I Receive Statements and Reports? ........................................ 89
Who is American Skandia? .......................................................... 89
What Are Separate Accounts? ....................................................... 89
What is the Legal Structure of the Underlying Funds? .............................. 91
Who Distributes Annuities Offered by American Skandia? ............................ 92
Incorporation of Certain Documents by Reference ................................... 92
Financial Statements .............................................................. 93
How to Contact Us ................................................................. 93
Indemnification ................................................................... 94
Legal Proceedings ................................................................. 94
Contents of the Statement of Additional Information ............................... 94
Appendix A -- Condensed Financial Information About Separate Account B .............. A-1
Appendix B -- Calculation of Optional Death Benefits ................................ B-1
Appendix C-1 -- Advisor's Choice Prior Contract ..................................... C-1
Appendix C-2 -- Advisor's Design Prior Contract ..................................... C-3
Appendix D -- Performance Advantage ................................................. D-1
Appendix E -- Plus40TM Optional Life Insurance Rider ................................ E-1
Appendix F -- Description and Calculation of Previously Offered Optional
Death Benefits ..................................................................... F-1
Appendix G -- Additional Information on Asset Allocation Programs ................... G-1
(ii)
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Introduction
WHY WOULD I CHOOSE TO PURCHASE THIS ANNUITY?
This Annuity is frequently used for retirement planning because it allows you to
accumulate retirement savings and also offers annuity payment options when you
are ready to begin receiving income. The Annuity also offers a choice of
different optional benefits, for an additional charge, that can provide
principal protection or guaranteed minimum income protection for Owners while
they are alive and one or more death benefits that can protect your retirement
savings if you die during a period of declining markets. It may be used as an
investment vehicle for "qualified" investments, including an IRA, SEP-IRA, Roth
IRA, Section 401(a) plans (defined benefit plans and defined contribution plans
such as 401(k), profit sharing and money purchase plans) or Tax Sheltered
Annuity (or 403(b)). It may also be used as an investment vehicle for
"non-qualified" investments. The Annuity allows you to invest your money in a
number of variable investment options as well as in one or more fixed
allocations.
When an Annuity is purchased as a "NON-QUALIFIED" investment, you generally are
not taxed on any investment gains the Annuity earns until you make a withdrawal
or begin to receive annuity payments. This feature, referred to as
"tax-deferral", can be beneficial to the growth of your Account Value because
money that would otherwise be needed to pay taxes on investment gains each year
remains invested and can earn additional money. However, because the Annuity is
designed for long-term retirement savings, a 10% penalty tax may be applied on
withdrawals you make before you reach age 591/2. Annuities purchased as a
non-qualified investment are not subject to the maximum contribution limits that
may apply to a qualified investment, and are not subject to required minimum
distributions after age 70 1/2
When an Annuity is purchased as a "QUALIFIED" investment, you should consider
that the Annuity does not provide any tax advantages in addition to the
preferential treatment already available through your retirement plan under the
Internal Revenue Code. An Annuity may offer features and benefits in addition to
providing tax deferral that other investment vehicles may not offer, including
death benefit protection for your beneficiaries, lifetime income options, and
the ability to make transfers between numerous variable investment options
offered under the Annuity. You should consult with your investment professional
as to whether the overall benefits and costs of the Annuity are appropriate
considering your overall financial plan.
WHAT ARE SOME OF THE KEY FEATURES OF THIS ANNUITY?
- - This Annuity is a "flexible premium deferred annuity." It is called
"flexible premium" because you have considerable flexibility in the timing
and amount of premium payments. Generally, investors "defer" receiving
annuity payments until after an accumulation period.
- - This Annuity offers both variable investment options and Fixed Allocations.
If you allocate your Account Value to variable investment options, the
value of your Annuity will vary daily to reflect the investment performance
of the underlying investment options. Fixed Allocations of different
durations are offered that are guaranteed by us, but may have a Market
Value Adjustment if you withdraw or transfer your Account Value before the
Maturity Date.
- - The Annuity features two distinct phases -- the accumulation period and the
payout period. During the accumulation period your Account Value is
allocated to one or more investment options.
- - During the payout period, commonly called "annuitization," you can elect to
receive annuity payments (1) for life; (2) for life with a guaranteed
minimum number of payments; (3) based on joint lives; or (4) for a
guaranteed number of payments. We currently make annuity payments available
on a fixed or variable basis.
- - This Annuity offers optional benefits, for an additional charge, that can
provide principal protection or guaranteed minimum income protection for
Owners while they are alive.
- - This Annuity offers a basic Death Benefit. It also offers optional Death
Benefits that provide an enhanced level of protection for your
beneficiary(ies) for an additional charge.
- - There is no Contingent Deferred Sales Charge on surrenders or withdrawals.
You can withdraw Account Value from your Annuity free of any charges
although the value of any optional guaranteed benefit you elect may be
reduced.
- - Transfers between investment options are tax-free. Currently, you may make
twenty transfers each year free of charge. We also offer several programs
that enable you to manage your Account Value as your financial needs and
investment performance change.
HOW DO I PURCHASE THIS ANNUITY?
We sell the Annuity through licensed, registered investment professionals. The
Annuity may also be purchased directly from us. We may require satisfactory
evidence that you have engaged the services of an Advisor. You must complete an
application and submit a minimum initial purchase payment of $5,000. We may
allow you to make a lower initial purchase payment provided you establish a bank
drafting program under which purchase payments received in the first Annuity
Year total at least $5,000. There is no age restriction to purchase the Annuity.
However, the basic Death Benefit provides greater protection for Owners under
age 85 as of the Issue Date of this Annuity. The availability and level of
protection of certain optional benefits may vary based on the age of the Owner
on the Issue Date of the Annuity or the date of the Owner's death.
1
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Glossary of Terms
Many terms used within this Prospectus are described within the text where they
appear. The description of those terms are not repeated in this Glossary of
Terms.
ACCOUNT VALUE
The value of each allocation to a Sub-account (also referred to as "variable
investment option") or a Fixed Allocation prior to the Annuity Date, plus any
earnings, and/or less any losses, distributions and charges. Other than on a
contract anniversary, the Account Value is calculated before we assess any fee
that is deducted annually in arrears. The Account Value is determined separately
for each Sub-account and for each Fixed Allocation, and then totaled to
determine the Account Value for your entire Annuity. The Account Value of each
Fixed Allocation on other than its Maturity Date may be calculated using a
market value adjustment.
ADVISOR
A person or entity which:
- - is registered under the Investment Advisers Act of 1940, as amended, and,
where applicable, under equivalent state law or regulation regarding the
registration of investment advisors; or
- - may provide investment advisory services but is exempt from such
registration.
ANNUITIZATION
The application of Account Value (or Protected Income Value for the Guaranteed
Minimum Income Benefit, if applicable) to one of the available annuity options
for the Annuitant to begin receiving periodic payments for life, for a
guaranteed minimum number of payments or for life with a guaranteed minimum
number of payments.
ANNUITY DATE
The date you choose for annuity payments to commence. A maximum Annuity Date may
apply.
ANNUITY YEAR
A 12-month period commencing on the Issue Date of the Annuity and each
successive 12-month period thereafter.
CODE
The Internal Revenue Code of 1986, as amended from time to time.
FIXED ALLOCATION
An allocation of Account Value that is to be credited a fixed rate of interest
for a specified Guarantee Period during the accumulation period.
GUARANTEE PERIOD
A period of time during the accumulation period where we credit a fixed rate of
interest on a Fixed Allocation.
INTERIM VALUE
The value of a Fixed Allocation on any date other than the Maturity Date. The
Interim Value is equal to the initial value allocated to the Fixed Allocation
plus all interest credited to the Fixed Allocation as of the date calculated,
less any transfers or withdrawals from the Fixed Allocation.
ISSUE DATE
The effective date of your Annuity.
MVA
A market value adjustment used in the determination of Account Value of each
Fixed Allocation on any day other than the Maturity Date of such Fixed
Allocation.
OWNER
With an Annuity issued as an individual annuity contract, the Owner is either an
eligible entity or person named as having ownership rights in relation to the
Annuity. With an Annuity issued as a certificate under a group annuity contract,
the "Owner" refers to the person or entity who has the rights and benefits
designated as to the "Participant" in the certificate.
SURRENDER VALUE
The value of your Annuity available upon surrender prior to the Annuity Date. It
equals the Account Value as of the date we price the surrender minus the Annual
Maintenance Fee, Tax Charge, the charge for any optional benefits, and any
additional amounts we applied to your Purchase Payments that we may be entitled
to recover under certain circumstances. There is no Contingent Deferred Sales
Charge upon surrender or partial withdrawal. The surrender value may be
calculated using a Market Value Adjustment with respect to amounts in any Fixed
Allocation.
UNIT
A measure used to calculate your Account Value in a Sub-account during the
accumulation period.
VALUATION DAY
Every day the New York Stock Exchange is open for trading or any other day the
Securities and Exchange Commission requires mutual funds or unit investment
trusts to be valued.
2
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Summary of Contract Fees and Charges
Below is a summary of the fees and charges for the Annuity. Some fees and
charges are assessed against your Annuity while others are assessed against
assets allocated to the variable investment options. The fees and charges that
are assessed against the Annuity include the Transfer Fee, Tax Charge and Annual
Maintenance Fee. The charges that are assessed against the variable investment
options are the mortality and expense risk charge, the charge for administration
of the Annuity, and the charge for certain optional benefits you elect, other
than the Guaranteed Minimum Income Benefit, which is assessed against the
Protected Income Value. Each underlying mutual fund portfolio assesses a charge
for investment management, other expenses and with some mutual funds, a 12b-1
charge. The prospectus for each underlying mutual fund provides more detailed
information about the expenses for the underlying mutual funds.
The following table provides a summary of the fees and charges you will pay if
you surrender the Annuity or transfer Account Value among investment options.
These fees and charges are described in more detail within this Prospectus.
YOUR TRANSACTION FEES AND CHARGES
(ASSESSED AGAINST THE ANNUITY)
FEE/CHARGE AMOUNT DEDUCTED
- -------------------------------------------------------------------------------------------------------
Contingent Deferred Sales Charge There is no Contingent Deferred Sales Charge deducted upon
surrender or partial withdrawal.
Transfer Fee $10.00 (currently, $15.00 maximum)
(Currently, we deduct the fee after the 20th
transfer each Annuity Year.
We guarantee that the number of charge free transfers
per Annuity Year will never be less than 8.)
Tax Charge Up to 3.5% of the value that is annuitized, depending on the
requirements of the applicable jurisdiction. This charge is deducted
generally at the time you annuitize your contract.
3
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Summary of Contract Fees and Charges continued
The following table provides a summary of the periodic fees and charges you will
pay while you own the Annuity, excluding the underlying mutual fund Portfolio
annual expenses. These fees and charges are described in more detail within this
Prospectus.
YOUR PERIODIC FEES AND CHARGES
ANNUAL FEES/CHARGES ASSESSED AGAINST THE ANNUITY
FEE/CHARGE AMOUNT DEDUCTED
- --------------------------------------------------------------------------------------------------------------------
Annual Maintenance Fee Smaller of $35 or 2% of Account Value
(Only applicable if Account Value is under $50,000)
(Assessed annually on the Annuity's anniversary date or upon surrender)
ANNUAL FEES/CHARGES OF THE SUB-ACCOUNTS(1)
(AS A PERCENTAGE OF THE AVERAGE DAILY NET ASSETS OF THE SUB-ACCOUNTS)
FEE/CHARGE AMOUNT DEDUCTED
- --------------------------------------------------------------------------------------------------------------------
Mortality & Expense Risk Charge(2) 0.50%
Administration Charge(2) 0.15%
Settlement Service Charge(3) 1.40% per year of the value of each Sub-account if the Owner's
beneficiary elects the Qualified Beneficiary
Continuation Option(4) ("Qualified BCO")
Total Annual Charges of the Sub-accounts(2) 0.65% per year of the value of each Sub-account
1: These charges are deducted daily and apply to Variable Investment Options
only.
2: The combination of the Mortality and Expense Risk Charge and Administration
Charge is referred to as the "Insurance Charge" elsewhere in this Prospectus.
Prior to July 1, 1994, total annual expenses under the Annuity were 1.90%,
including an investment allocation service charge of 1.00% and 0.90% for what we
now refer to as the "Insurance Charge." Effective July 1, 1994, we no longer
deducted the investment allocation service charge; total annual expenses were
then 0.90%. Effective May 1, 1998, the Insurance Charge was further reduced to
0.65%.
3: The Mortality & Expense Risk Charge and the Administration do not apply if
you are a beneficiary under the Qualified Beneficiary Continuation Option. The
Settlement Service Charge applies only if your beneficiary elects the Qualified
Beneficiary Continuation Option.
4: When an Annuity is used as an IRA, 403(b) or other "qualified investment",
upon the Owner's death a beneficiary may generally elect to continue the Annuity
and receive Minimum Distributions under the Annuity instead of receiving the
death benefit in a single payment. If a beneficiary elects this option, the
beneficiary will incur the Settlement Service Charge. Please refer the section
of this Prospectus that describes the Qualified Beneficiary Continuation Option
for more detailed information about this option, including certain restrictions
and limitations that may apply.
4
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
The following table provides a summary of the fees and charges you will pay if
you elect any of the following optional benefits. Not all optional benefits may
be purchased in combination with one another. You may only elect one optional
living benefit. The optional living benefits are the Guaranteed Return Option
Plus program (and where not available, Guaranteed Return Option), the Guaranteed
Minimum Withdrawal Benefit, the Guaranteed Minimum Income Benefit and the
Lifetime Five(SM) Income Benefit. For the optional death benefits, you may elect
the Highest Anniversary Value Death Benefit or the Highest Daily Value Death
Benefit together with the Enhanced Beneficiary Protection Death Benefit or any
of these three benefits individually, but the Combination 5% Roll-up and HAV
Death Benefit may only be purchased individually. The fees and charges of each
of the optional benefits are described in more detail within this Prospectus.
YOUR OPTIONAL BENEFIT FEES AND CHARGES
OPTIONAL
BENEFIT FEE/ TOTAL ANNUAL
OPTIONAL BENEFIT CHARGE CHARGE*
- ---------------------------------------------------------------------------------------------------------------------------------
GUARANTEED RETURN OPTION Plus(SM) (GRO Plus(SM))/GUARANTEED RETURN
OPTION
We offer a program that guarantees a "return of premium" at a future 0.25% of average daily 0.90%
date, while allowing you to allocate all or a portion of your Account net assets of the Sub- 1.65% for Qualied BCO
Value to certain Sub-accounts. accounts
GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)
We offer a program that guarantees your ability to withdraw amounts over 0.35% of average daily 1.00%
time equal to an initial principal value, regardless of the impact of net assets of the Sub- 1.75% for Qualied BCO
market performance on your Account Value. accounts
GUARANTEED MINIMUM INCOME BENEFIT (GMIB)**
We offer a program that, after a seven-year waiting period, guarantees 0.50% per year of the 0.65%
your ability to begin receiving income from your Annuity in the form of average Protected PLUS
annuity payments based on your total Purchase Payments and an annual Income Value during 0.50% per year of average
increase of 5% on such Purchase Payments adjusted for withdrawals each year; deducted Protected Income Value
(called the "Protected Income Value"), regardless of the impact of annually in arrears each
market performance on your Account Value. Annuity Year
LIFETIME FIVE INCOME BENEFIT**
We offer a program that guarantees your ability to withdraw amounts 0.60% of average daily 1.25%
equal to a percentage of an initial principal value, regardless of the net assets of the Sub-
impact of market performance on your Account Value, subject to our accounts
program rules regarding the timing and amount of withdrawals.
ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT**
We offer an Optional Death Benet that provides an enhanced level of 0.25% of average daily 0.90%
protection for your bene ciary(ies) by providing amounts in addition to net assets of the Sub-
the basic Death Benet that can be used to offset federal and state accounts
taxes payable on any taxable gains in your Annuity at the time of your
death.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")**
We offer an Optional Death Bene t that provides an enhanced level of 0.25% of average daily 0.90%
protection for your bene ciary(ies) by providing a death bene t equal to net assets of the Sub-
the greater of the basic Death Benet or the Highest Anniversary Value. accounts
5
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Summary of Contract Fees and Charges continued
OPTIONAL
BENEFIT FEE/ TOTAL ANNUAL
OPTIONAL BENEFIT CHARGE CHARGE*
- -------------------------------------------------------------------------------------------------------------------------
COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT**
We offer an Optional Death Benet that provides an enhanced level of 0.50% of average daily 1.15%
protection for your beneficiary(ies) by providing the greater of the net assets of the Sub-
Highest Anniversary Value Death Benet and a 5% annual increase on accounts
Purchase Payments adjusted for withdrawals.
HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")**
We offer an Optional Death Benet that provides an enhanced level of 0.50% of average daily 1.15%
protection for your bene ciary(ies) by providing a death benet equal to net assets of the Sub-
the greater of the basic Death Benet and the Highest Daily Value, less accounts
proportional withdrawals.
PLEASE REFER TO THE SECTION OF THIS PROSPECTUS THAT DESCRIBES EACH OPTIONAL
BENEFIT FOR A COMPLETE DESCRIPTION OF THE BENEFIT, INCLUDING ANY RESTRICTIONS OR
LIMITATIONS THAT MAY APPLY.
* The Total Annual Charge includes the Insurance Charge assessed against the
average daily net assets allocated to the Sub-accounts. If you elect more than
one optional benefit, the Total Annual Charge would be increased to include the
charge for each optional benefit.
** These optional benefits are not available under the Qualified BCO.
The following table provides the range (minimum and maximum) of the total annual
expenses for the underlying mutual funds ("Portfolios") as of December 31, 2004.
Each figure is stated as a percentage of the underlying Portfolio's average
daily net assets.
TOTAL ANNUAL PORTFOLIO OPERATING EXPENSES
MINIMUM MAXIMUM
- ------------------------------------ ------- -------
Total Portfolio Operating Expense 0.63% 3.06%
The following are the investment management fees, other expenses, 12b-1 fees (if
applicable), and the total annual expenses for each underlying mutual fund
("Portfolio") as of December 31, 2004, except as noted. Each figure is stated as
a percentage of the underlying Portfolio's average daily net assets. For certain
of the underlying Portfolios, a portion of the management fee has been waived
and/or other expenses have been partially reimbursed. Any such fee waivers
and/or reimbursements have been reflected in the footnotes. The "Total Annual
Portfolio Operating Expenses" reflect the combination of the underlying
Portfolio's investment management fee, other expenses and any 12b-1 fees. The
following expenses are deducted by the underlying Portfolio before it provides
American Skandia with the daily net asset value. Any footnotes about expenses
appear after the list of all the Portfolios. The underlying Portfolio
information was provided by the underlying mutual funds and has not been
independently verified by us. See the prospectuses or statements of additional
information of the underlying Portfolios for further details. The current
prospectus and statement of additional information for the underlying Portfolios
can be obtained by calling 1-800-752-6342.
6
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
UNDERLYING MUTUAL FUND PORTFOLIO ANNUAL EXPENSES
(AS A PERCENTAGE OF THE AVERAGE NET ASSETS OF THE UNDERLYING PORTFOLIOS)
TOTAL
ANNUAL
PORTFOLIO
MANAGEMENT OTHER 12b-1 OPERATING
UNDERLYING PORTFOLIO FEES EXPENSES(1) FEES EXPENSES
AMERICAN SKANDIA TRUST:(2, 3)
AST JPMorgan International Equity 1.00% 0.13% None 1.13%
AST William Blair International Growth 1.00% 0.22% None 1.22%
AST LSV International Value(4) 1.00% 0.37% None 1.37%
AST MFS Global Equity 1.00% 0.35% None 1.35%
AST Small-Cap Growth(5) 0.90% 0.24% None 1.14%
AST DeAM Small-Cap Growth 0.95% 0.22% None 1.17%
AST Federated Aggressive Growth 0.95% 0.24% None 1.19%
AST Goldman Sachs Small-Cap Value 0.95% 0.24% None 1.19%
AST Small-Cap Value(6) 0.90% 0.18% None 1.08%
AST DeAM Small-Cap Value 0.95% 0.33% None 1.28%
AST Goldman Sachs Mid-Cap Growth 1.00% 0.25% None 1.25%
AST Neuberger Berman Mid-Cap Growth 0.90% 0.22% None 1.12%
AST Neuberger Berman Mid-Cap Value 0.90% 0.15% None 1.05%
AST Alger All-Cap Growth 0.95% 0.22% None 1.17%
AST Gabelli All-Cap Value 0.95% 0.26% None 1.21%
AST T. Rowe Price Natural Resources 0.90% 0.26% None 1.16%
AST AllianceBernstein Large-Cap Growth(7) 0.90% 0.23% None 1.13%
AST MFS Growth 0.90% 0.20% None 1.10%
AST Marsico Capital Growth 0.90% 0.14% None 1.04%
AST Goldman Sachs Concentrated Growth 0.90% 0.17% None 1.07%
AST DeAM Large-Cap Value 0.85% 0.26% None 1.11%
AST AllianceBernstein Growth + Value 0.90% 0.32% None 1.22%
AST AllianceBernstein Core Value(8) 0.75% 0.24% None 0.99%
AST Cohen & Steers Realty 1.00% 0.22% None 1.22%
AST AllianceBernstein Managed Index 500(9) 0.60% 0.17% None 0.77%
AST American Century Income & Growth 0.75% 0.24% None 0.99%
AST AllianceBernstein Growth & Income(10) 0.75% 0.15% None 0.90%
AST Hotchkis & Wiley Large-Cap Value 0.75% 0.19% None 0.94%
AST Global Allocation(11) 0.89% 0.26% None 1.15%
AST American Century Strategic Balanced 0.85% 0.27% None 1.12%
AST T. Rowe Price Asset Allocation 0.85% 0.27% None 1.12%
AST T. Rowe Price Global Bond 0.80% 0.27% None 1.07%
AST Goldman Sachs High Yield 0.75% 0.18% None 0.93%
AST Lord Abbett Bond-Debenture 0.80% 0.22% None 1.02%
AST PIMCO Total Return Bond 0.65% 0.16% None 0.81%
AST PIMCO Limited Maturity Bond 0.65% 0.17% None 0.82%
AST Money Market 0.50% 0.13% None 0.63%
GARTMORE VARIABLE INVESTMENT TRUST:
GVIT Developing Markets 1.15% 0.38% 0.25% 1.78%
WELLS FARGO VARIABLE TRUST ADVANTAGE:(12)
Advantage C&B Large Cap Value 0.55% 0.39% 0.25% 1.19%
Advantage Equity Income 0.55% 0.23% 0.25% 1.03%
7
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Summary of Contract Fees and Charges continued
TOTAL
ANNUAL
PORTFOLIO
MANAGEMENT OTHER 12b-1 OPERATING
UNDERLYING PORTFOLIO FEES EXPENSES(1) FEES EXPENSES
AIM VARIABLE INSURANCE FUNDS:(13)
AIM V.I. Dynamics Fund -- Series I shares 0.75% 0.39% None 1.14%
AIM V.I. Technology Fund -- Series I shares 0.75% 0.40% None 1.15%
AIM V.I. Health Sciences Fund -- Series I shares(14) 0.75% 0.36% None 1.11%
AIM V.I. Financial Services Fund -- Series I shares 0.75% 0.37% None 1.12%
RYDEX VARIABLE TRUST:
Nova 0.75% 0.71% None 1.46%
Ursa 0.90% 0.72% None 1.62%
OTC 0.75% 0.72% None 1.47%
EVERGREEN VARIABLE ANNUITY TRUST:
International Equity 0.42% 0.30% None 0.72%
Growth 0.70% 0.26% None 0.96%
Omega 0.52% 0.16% None 0.68%
PROFUND VP:(15)
Access High Yield 0.75% 1.02% 0.25% 1.98%
Bull 0.75% 0.78% 0.25% 1.78%
OTC 0.75% 0.87% 0.25% 1.87%
Large-Cap Value 0.75% 1.04% 0.25% 2.04%
Large-Cap Growth 0.75% 2.06% 0.25% 3.06%
Mid-Cap Value 0.75% 0.92% 0.25% 1.92%
Mid-Cap Growth 0.75% 0.94% 0.25% 1.94%
Small-Cap Value 0.75% 0.95% 0.25% 1.95%
Small-Cap Growth 0.75% 0.90% 0.25% 1.90%
Asia 30 0.75% 0.86% 0.25% 1.86%
Europe 30 0.75% 0.78% 0.25% 1.78%
Japan 0.75% 0.85% 0.25% 1.85%
UltraBull 0.75% 0.89% 0.25% 1.89%
UltraMid-Cap 0.75% 0.94% 0.25% 1.94%
UltraSmall-Cap 0.75% 0.94% 0.25% 1.94%
UltraOTC 0.75% 0.88% 0.25% 1.88%
Bear 0.75% 0.90% 0.25% 1.90%
Short Mid-Cap 0.75% 0.90% 0.25% 1.90%
Short Small-Cap 0.75% 1.28% 0.25% 2.28%
Short OTC 0.75% 0.86% 0.25% 1.86%
Banks 0.75% 0.98% 0.25% 1.98%
Basic Materials 0.75% 0.96% 0.25% 1.96%
Biotechnology 0.75% 0.98% 0.25% 1.98%
Consumer Goods 0.75% 0.99% 0.25% 1.99%
Consumer Services 0.75% 1.20% 0.25% 2.20%
Financials 0.75% 0.92% 0.25% 1.92%
Health Care 0.75% 0.91% 0.25% 1.91%
Industrials 0.75% 0.99% 0.25% 1.99%
Internet 0.75% 0.94% 0.25% 1.94%
Oil & Gas 0.75% 0.92% 0.25% 1.92%
8
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
TOTAL
ANNUAL
PORTFOLIO
MANAGEMENT OTHER 12b-1 OPERATING
UNDERLYING PORTFOLIO FEES EXPENSES(1) FEES EXPENSES
PROFUND VP:(15) CONTINUED
Pharmaceuticals 0.75% 0.97% 0.25% 1.97%
Precious Metals 0.75% 0.87% 0.25% 1.87%
Real Estate 0.75% 0.93% 0.25% 1.93%
Semiconductor 0.75% 0.99% 0.25% 1.99%
Technology 0.75% 0.87% 0.25% 1.87%
Telecommunications 0.75% 0.95% 0.25% 1.95%
Utilities 0.75% 0.95% 0.25% 1.95%
U.S. Government Plus 0.50% 0.86% 0.25% 1.61%
Rising Rates Opportunity 0.75% 0.75% 0.25% 1.75%
FIRST DEFINED PORTFOLIO FUND, LLC:(16, 17)
First Trust(R) 10 Uncommon Values 0.60% 0.76% 0.25% 1.61%
Target Managed VIP 0.60% 1.25% 0.25% 2.10%
The Dow(SM) DART 10 0.60% 1.53% 0.25% 2.38%
Global Dividend Target 15 0.60% 1.85% 0.25% 2.70%
S&P(R) Target 24 0.60% 1.58% 0.25% 2.43%
NASDAQ(R) Target 15 0.60% 1.75% 0.25% 2.60%
Value Line(R) Target 25 0.60% 1.48% 0.25% 2.33%
The Dow Target Dividend(18) 0.60% 0.62% 0.25% 1.47%
THE PRUDENTIAL SERIES FUND, INC.:
SP William Blair International Growth 0.85% 0.45% 0.25% 1.55%
1: As noted above, shares of the Portfolios generally are purchased through
variable insurance products. Many of the Portfolios and/or their investment
advisers and/or distributors have entered into arrangements with us as the
issuer of the Annuity under which they compensate us for providing ongoing
services in lieu of the Trust providing such services. Amounts paid by a
Portfolio under those arrangements are included under "Other Expenses." For more
information see the prospectus for each underlying portfolio and, "Service Fees
payable to American Skandia," later in this prospectus.
2: The Portfolios' total actual annual operating expenses for the year ended
December 31, 2004 were less than the amount shown in the table due to fee
waivers, reimbursement of expenses and expense offset arrangements. These
waivers, reimbursements, and offset arrangements are voluntary and may be
terminated by American Skandia Investment Services, Inc. and Prudential
Investments LLC at any time. After accounting for the waivers, reimbursements
and offset arrangements, the Portfolios' actual annual operating expenses were:
TOTAL ACTUAL ANNUAL
PORTFOLIO OPERATING EXPENSES
PORTFOLIO NAME AFTER EXPENSE REIMBURSEMENT
AST William Blair International Growth 1.11%
AST LSV International Value 1.22%
AST DeAM Small-Cap Growth 1.02%
AST DeAM Small-Cap Value 1.13%
AST Goldman Sachs Mid-Cap Growth 1.13%
AST Neuberger Berman Mid-Cap Growth 1.11%
AST Neuberger Berman Mid-Cap Value 1.04%
AST AllianceBernstein Large-Cap Growth 1.10%
AST MFS Growth 1.07%
AST Marsico Capital Growth 1.02%
AST Goldman Sachs Concentrated Growth 1.00%
AST DeAM Large-Cap Value 0.99%
AST Cohen & Steers Realty 1.11%
AST AllianceBernstein Growth & Income 0.87%
AST Hotchkis & Wiley Large-Cap Value 0.90%
AST American Century Strategic Balanced 1.09%
AST T. Rowe Price Asset Allocation 1.07%
AST Lord Abbett Bond-Debenture Portfolio 0.97%
AST PIMCO Total Return Bond 0.78%
AST PIMCO Limited Maturity Bond 0.79%
AST Money Market 0.58%
9
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Summary of Contract Fees and Charges continued
3: Until November 18, 2004, the Trust had a Distribution Plan under Rule 12b-1
to permit an affiliate of the Trust's Investment Managers to receive brokerage
commissions in connection with purchases and sales of securities held by the
Portfolios, and to use these commissions to promote the sale of shares of the
Portfolio. The Distribution Plan was terminated effective November 18, 2004. The
total annual portfolio operating expenses do not reflect any brokerage
commissions paid pursuant to the Distribution Plan prior to the Plan's
termination.
4: Effective November 18, 2004, LSV Asset Management became the Sub-advisor of
the Portfolio. Prior to November 18, 2004, Deutsche Asset Management, Inc.
served as Sub-advisor of the Portfolio, then named "AST DeAM International
Equity Portfolio."
5: Effective May 1, 2005, Eagle Asset Management and Neuberger Berman
Management, Inc. became Co-Sub-advisors of the Portfolio. Prior to May 1, 2005,
State Street Research and Management Company served as Sub-advisor of the
Portfolio, then named "AST State Street Research Small-Cap Growth Portfolio."
6: Effective November 18, 2004, Integrity Asset Management, Lee Munder Capital
Group, J.P. Morgan Fleming Asset Management became Co-Sub-advisors of the
Portfolio. Prior to November 18, 2004, GAMCO Advisors Inc. served as Sub-advisor
of the Portfolio, then named "AST Gabelli Small-Cap Value Portfolio."
7: Effective May 1, 2005, the name of the Portfolio was changed from "AST
Alliance Growth Portfolio" to "AST AllianceBernstein Large-Cap Growth
Portfolio."
8: Effective May 1, 2005, the name of the Portfolio was changed from "AST
Sanford Bernstein Core Value Portfolio" to "AST AllianceBernstein Core Value
Portfolio."
9: Effective May 1, 2005, the name of the Portfolio was changed from "AST
Sanford Bernstein Managed Index 500 Portfolio" to "AST AllianceBernstein
Managed Index 500 Portfolio."
10: Effective May 1, 2005, the name of the Portfolio was changed from "AST
Alliance Growth and Income Portfolio" to "AST AllianceBernstein Growth & Income
Portfolio."
11: The Global Asset Allocation Portfolio invests primarily in shares of other
AST Portfolios (the "Underlying Portfolios").
a: The only management fee directly paid by the Portfolio is a 0.10% fee
paid to American Skandia Investment Services, Inc. and Prudential
Investments LLC. The management fee shown in the chart for the Portfolio
is (i) that 0.10% management fee paid by the Portfolio plus (ii) an
estimate of the management fees paid by the Underlying Portfolios, which
are borne indirectly by investors in the Portfolio. The estimate was
calculated based on the percentage of the Portfolio invested in each
Underlying Portfolio as of December 31, 2004 using the management fee
rates shown in the chart above.
b: The expense information shown in the chart for the Portfolio reflects
(i) the expenses of the Portfolio itself plus (ii) an estimate of the
expenses paid by the Underlying Portfolios, which are borne indirectly by
investors in the Portfolio. The estimate was calculated based on the
percentage of the Portfolio invested in each Underlying Portfolio as of
December 31, 2004 using the expense rates for the Underlying Portfolios
shown in the above chart.
c: Effective May 1, 2005, Prudential Investment LLC provides day-to-day
management of the Portfolio. Prior to May 1, 2005, Deutsche Asset
Management, Inc. served as Sub-advisor of the Portfolio, then named "AST
DeAM Global Allocation Portfolio."
12: a: The Adviser of Wells Fargo Variable Trust has committed through April 30,
2006 to waive fees and/or reimburse expenses to the extent necessary to maintain
the Fund's net operating expenses as shown.
TOTAL ACTUAL ANNUAL
PORTFOLIO OPERATING EXPENSES
PORTFOLIO NAME AFTER EXPENSE REIMBURSEMENT
Advantage C&B Large Cap Value 1.00%
Advantage Equity Income 1.00%
b: In addition, the following name changes were made effective May 1,
2005:
OLD PORTFOLIO NAME NEW PORTFOLIO NAME
Equity Value Advantage C&B Large Cap Value
Equity Income Advantage Equity Income
13: The Fund's adviser is entitled to receive reimbursement from the Fund for
fees and expenses paid for by the Fund's adviser pursuant to expense limitation
commitments between the Fund's adviser and the Fund if such reimbursement does
not cause the Fund to exceed its then-current expense limitations and the
reimbursement is made within three years after the Fund's adviser incurred the
expense.
14: Effective July 1, 2005, the "AIM V.I. Health Sciences Fund" will be renamed
"AIM V.I. Global Health Care Fund."
15: ProFund Advisors LLC has contractually agreed to waive Investment Advisory
and Management Services Fees and to reimburse other expenses to the extent Total
Annual Portfolio Operating Expenses, as a percentage of average daily net
assets, exceed 1.98% (1.73% for ProFund VP U.S. Government Plus and 1.78% for
ProFund VP Rising Rates Opportunity) through December 31, 2005. After such date,
any of the expense limitations may be terminated or revised. Amounts waived or
reimbursed in a particular fiscal year may be repaid to ProFund Advisors LLC
within three years of the waiver or reimbursement to the extent that recoupment
will not cause the Portfolio's expenses to exceed any expense limitation in
place at that time. A waiver or reimbursement lowers the expense ratio and
increases overall returns to investors.
16: The Funds' Board of Trustees reserve the right to suspend payments under the
12b-1 Plan at any time. On May 1, 2003, 12b-1 payments were suspended for all
Funds except the First Trust 10 Uncommon Values Portfolio. Payments under the
12b-1 Plan resumed effective May 1, 2004 for the Target Managed VIP Portfolio,
the Dow Dart 10 Portfolio, the Global Dividend Target 15 Portfolio, the S&P
Target 24 Portfolio, the Nasdaq Target 15 Portfolio and the Value Line Target 25
Portfolio.
17: For the period September 30, 2004 through December 31, 2007, First Trust has
contractually agreed to waive fees and reimburse expenses of the Portfolios to
limit the total annual fund operating expenses (excluding brokerage expense and
extraordinary expense) to 1.37% for the First Trust 10 Uncommon Values Portfolio
and 1.47% for each of the other Portfolios' average daily net assets. First
Trust has entered into an agreement with First Defined Portfolio Fund, LLC that
will allow First Trust to recover from the Portfolios any fees waived or
reimbursed during the three year period of January 1, 2005 through December 31,
2007. However, First Trust's ability to recover such amounts is limited to the
extent that it would not exceed the amount reimbursed or waived during such
period.
TOTAL ACTUAL ANNUAL
PORTFOLIO OPERATING EXPENSES
PORTFOLIO NAME AFTER EXPENSE REIMBURSEMENT
First Trust(R) 10 Uncommon Values 1.37%
Target Managed VIP 1.47%
S&P Target 24 1.47%
The Dow(SM) DART 10 1.47%
Value Line(R) Target 25 1.47%
Global Dividend Target 15 1.47%
Nasdaq Target 15 1.47%
Dow Target Dividend 1.47%
18: The Dow(SM) Target Dividend Portfolio is newly organized. Accordingly, Other
Expenses and Total Annual Portfolio Operating Expenses are based on estimated
expenses for the current fiscal year.
10
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Expense Examples
These examples are designed to assist you in understanding the various expenses
you may incur with the Annuity over certain periods of time based on specific
assumptions. The examples reflect the Annual Maintenance Fee, Insurance Charge,
and the highest total annual portfolio operating expenses for any underlying
Portfolio offered under the product, as well as the maximum charges for the
optional benefits that are offered under the Annuity that can be elected in
combination with one another.
Below are examples showing what you would pay in expenses at the end of the
stated time periods had you invested $10,000 in the Annuity and received a 5%
annual return on assets, and elected all optional benefits available.
The examples shown assume that: (a) you only allocate Account Value to the
Sub-account with the maximum total annual portfolio operating expenses for the
underlying Portfolio (shown above), not to a Fixed Allocation; (b) the Insurance
Charge is assessed as 0.65% per year; (c) the Annual Maintenance Fee is
reflected as an asset-based charge based on an assumed average contract size;
(d) you make no withdrawals of Account Value during the period shown; (e) you
make no transfers, or other transactions for which we charge a fee during the
period shown; (f) no tax charge applies; (g) the highest total annual portfolio
operating expenses for any underlying Portfolio offered under the product
applies; and (h) the charge for each optional benefit is reflected as an
additional charge equal to 0.60% per year of the average daily net assets of the
Sub-accounts for the Lifetime Five Income Benefit, 0.50% per year of the average
daily net assets of the Sub-accounts for the Highest Daily Value Death Benefit
and 0.25% of the average daily net assets of the Sub-accounts for the Enhanced
Beneficiary Protection Death Benefit. Amounts shown in the examples are rounded
to the nearest dollar.
THE EXAMPLES ARE ILLUSTRATIVE ONLY -- THEY SHOULD NOT BE CONSIDERED A
REPRESENTATION OF PAST OR FUTURE EXPENSES OF THE UNDERLYING MUTUAL FUNDS OR
THEIR PORTFOLIOS -- ACTUAL EXPENSES WILL BE LESS THAN THOSE SHOWN IF YOU ELECT A
DIFFERENT COMBINATION OF OPTIONAL BENEFITS THAN INDICATED IN THE EXAMPLES OR IF
YOU ALLOCATE ACCOUNT VALUE TO ANY OTHER AVAILABLE SUB-ACCOUNTS.
Expense Examples are provided as follows: 1.) whether or not you surrender the
Annuity at the end of the stated time period; and 2.) if you annuitize at the
end of the stated time period. A table of accumulation values appears in
Appendix A to this Prospectus.
WHETHER OR NOT YOU SURRENDER YOUR ANNUITY IF YOU ANNUITIZE YOUR ANNUITY AT THE END OF
AT THE END OF THE APPLICABLE TIME PERIOD: THE APPLICABLE TIME PERIOD:
- ----------------------------------------------------------------------------------------
1 YR 3 YRS 5 YRS 10 YRS 1 YR 3 YRS 5 YRS 10 YRS
$673 $1,983 $3,246 $6,212 $673 $1,983 $3,246 $6,212
11
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options
WHAT ARE THE INVESTMENT OBJECTIVES AND POLICIES OF THE PORTFOLIOS?
Each variable investment option is a Sub-account of American Skandia Life
Assurance Corporation Variable Account B (see "What are Separate Accounts" for
more detailed information). Each Sub-account invests exclusively in one
Portfolio. You should carefully read the prospectus for any Portfolio in which
you are interested. The following chart classifies each of the Portfolios based
on our assessment of their investment style (as of the date of this Prospectus).
The chart also provides a description of each Portfolio's investment objective
(in italics) and a short, summary description of their key policies to assist
you in determining which Portfolios may be of interest to you. There is no
guarantee that any underlying Portfolio will meet its investment objective.
The name of the advisor/sub-advisor for each Portfolio appears next to the
description. Those Portfolios whose name includes the prefix "AST" are
Portfolios of American Skandia Trust. The investment managers for AST are
American Skandia Investment Services, Incorporated, a Prudential Financial
Company and Prudential Investments LLC, affiliated companies of American
Skandia. However, a sub-advisor, as noted below, is engaged to conduct
day-to-day investment decisions.
The Portfolios are not publicly traded mutual funds. They are only
available as investment options in variable annuity contracts and variable life
insurance policies issued by insurance companies, or in some cases, to
participants in certain qualified retirement plans. However, some of the
Portfolios available as Sub-accounts under the Annuity are managed by the same
portfolio advisor or sub-advisor as a retail mutual fund of the same or similar
name that the Portfolio may have been modeled after at its inception. Certain
retail mutual funds may also have been modeled after a Portfolio. While the
investment objective and policies of the retail mutual funds and the Portfolios
may be substantially similar, the actual investments will differ to varying
degrees. Differences in the performance of the funds can be expected, and in
some cases could be substantial. You should not compare the performance of a
publicly traded mutual fund with the performance of any similarly named
Portfolio offered as a Sub-account. Details about the investment objectives,
policies, risks, costs and management of the Portfolios are found in the
prospectuses for the underlying mutual funds. The current prospectus and
statement of additional information for the underlying Portfolios can be
obtained by calling 1-800-752-6342.
Effective MARCH 16, 2001, the NOVA, URSA AND OTC PORTFOLIOS OF RYDEX VARIABLE
TRUST is no longer offered as Sub-accounts under the Annuity. Owners of
Annuities issued on or after March 16, 2001 will not be allowed to allocate
Account Value to the Rydex Nova, Rydex Ursa or Rydex OTC Sub-accounts. Except as
noted below, Owners of Annuities issued before March 16, 2001, and/or their
authorized investment professionals, will no longer be able to allocate
additional Account Value or make transfers into the Rydex Nova, Rydex Ursa or
Rydex OTC Sub-accounts. Annuity Owners and/or their authorized investment
professionals who elect to transfer Account Value out of the Rydex Sub-accounts
on or after March 16, 2001 will not be allowed to transfer Account Value into
the Rydex Sub-accounts at a later date. Bank drafting, dollar cost averaging,
asset allocation and rebalancing programs that were effective before March 16,
2001 and included one or more of the Rydex Sub-accounts will be allowed to
continue. However, no changes involving the Rydex Sub-accounts may be made to
such programs.
12
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Effective as of the close of business JUNE 28, 2002, THE AST GOLDMAN SACHS
SMALL-CAP VALUE PORTFOLIO is no longer offered as a Sub-account under the
Annuity, except as follows: if at any time on or prior to June 28, 2002 you had
any portion of your Account Value allocated to the AST Goldman Sachs Small-Cap
Value Sub-account, you may continue to allocate Account Value and make transfers
into and/or out of the AST Goldman Sachs Small-Cap Value Sub-account, including
any bank drafting, dollar cost averaging, asset allocation and rebalancing
programs. If you never had a portion of your Account Value allocated to the AST
Goldman Sachs Small-Cap Value Sub-account on or prior to June 28, 2002 or if you
purchase your Annuity after June 28, 2002, you cannot allocate Account Value to
the AST Goldman Sachs Small-Cap Value Sub-Account.
Effective MAY 1, 2004, THE SP WILLIAM BLAIR INTERNATIONAL GROWTH PORTFOLIO
(FORMERLY THE SP JENNISON INTERNATIONAL GROWTH PORTFOLIO) is no longer offered
as a Sub-account under the Annuity, except as follows: if at any time prior to
May 1, 2004 you had any portion of your Account Value allocated to the SP
William Blair International Growth Sub-account, you may continue to allocate
Account Value and make transfers into and/or out of the SP William Blair
International Growth Sub-account, including any bank drafting, dollar cost
averaging, asset allocation and rebalancing programs. If you never had a portion
of your Account Value allocated to the SP William Blair International Growth
Sub-account prior to May 1, 2004 or if you purchase your Annuity on or after May
1, 2004, you cannot allocate Account Value to the SP William Blair International
Growth Sub-Account.
Either of the above Sub-accounts may be offered to new Owners at some
future date; however, at the present time, there is no intention to do so. We
also reserve the right to offer or close each of the above Sub-accounts to all
Owners that owned the Annuity prior to the respective close dates.
13
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL AST JPMORGAN INTERNATIONAL EQUITY: seeks long-term capital growth by J.P. Morgan
EQUITY investing in a diversified portfolio of international equity securities. The Portfolio Fleming Asset
seeks to meet its objective by investing, under normal market conditions, at least Management
80% of its assets in a diversified portfolio of equity securities of companies located
or operating in developed non-U.S. countries and emerging markets of the world.
INTERNATIONAL AST WILLIAM BLAIR INTERNATIONAL GROWTH Seeks long-term capital appreciation. William Blair &
EQUITY The Portfolio invests primarily in stocks of large and medium-sized companies Company, L.L.C.
located in countries included in the Morgan Stanley Capital International All Country
World Ex-U.S. Index.
INTERNATIONAL AST LSV INTERNATIONAL VALUE (formerly AST DeAM International Equity): seeks Deutsche Asset
EQUITY capital growth. The Portfolio pursues its objective by primarily investing at least Management, Inc.
80% of the value of its assets in the equity securities of companies in developed
non-U.S. countries that are represented in the MSCI EAFE Index.
INTERNATIONAL AST MFS GLOBAL EQUITY: seeks capital growth. Under normal circumstances Massachusetts
EQUITY the Portfolio invests at least 80% of its assets in equity securities of U.S. and Financial Services
foreign issuers (including issuers in developing countries). The Portfolio generally Company
seeks to purchase securities of companies with relatively large market capitalizations
relative to the market in which they are traded.
SMALL CAP AST SMALL-CAP GROWTH (formerly AST State Street Research Small-Cap Eagle Asset
GROWTH Growth): seeks long-term capital growth. The Portfolio pursues its objective by Management,
primarily investing in the common stocks of small-capitalization companies. Neuberger Berman
Management, Inc.
SMALL CAP AST DEAM SMALL-CAP GROWTH: seeks maximum growth of investors' capital Deutsche Asset
GROWTH from a portfolio of growth stocks of smaller companies. The Portfolio pursues its Management, Inc.
objective, under normal circumstances, by primarily investing at least 80% of its total
assets in the equity securities of small-sized companies included in the Russell 2000
Growth(R) Index.
SMALL CAP AST FEDERATED AGGRESSIVE GROWTH: seeks capital growth. The Portfolio Federated Equity
GROWTH pursues its investment objective by investing primarily in the stocks of small Management
companies that are traded on national security exchanges, the NASDAQ stock Company of
exchange and the over-the-counter-market. Pennsylvania/
Federated Global
Investment
Management Corp.
SMALL CAP AST GOLDMAN SACHS SMALL-CAP VALUE: seeks long-term capital appreciation. Goldman Sachs
VALUE The Portfolio will seek its objective through investments primarily in equity Asset Management,
securities that are believed to be undervalued in the marketplace. The Portfolio L.P.
primarily seeks companies that are small-sized, based on the value of their
outstanding stock.
14
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SMALL CAP AST SMALL-CAP VALUE (formerly AST Gabelli Small-Cap Value): seeks to provide Integrity Asset
VALUE long-term capital growth by investing primarily in small-capitalization stocks that Management, Lee
appear to be undervalued. The Portfolio will have a non-fundamental policy to Munder Capital
invest, under normal circumstances, at least 80% of the value of its assets in Group, J.P. Morgan
small capitalization companies. Fleming Asset
Management
SMALL CAP AST DEAM SMALL-CAP VALUE: seeks maximum growth of investors' capital. Deutsche Asset
VALUE The Portfolio pursues its objective, under normal market conditions, by primarily Management, Inc.
investing at least 80% of its total assets in the equity securities of small-sized
companies included in the Russell 2000(R) Value Index.
MID CAP AST GOLDMAN SACHS MID-CAP GROWTH: seeks long-term capital growth. The Goldman Sachs
GROWTH Portfolio pursues its investment objective, by investing primarily in equity Asset Management,
securities selected for their growth potential, and normally invests at least 80% L.P.
of the value of its assets in medium capitalization companies.
MID-CAP AST NEUBERGER BERMAN MID-CAP GROWTH: seeks capital growth. Under Neuberger Berman
GROWTH normal market conditions, the Portfolio primarily invests at least 80% of its net Management Inc.
assets in the common stocks of mid-cap companies. The Sub-advisor looks for fast
growing companies that are in new or rapidly evolving industries.
MID CAP VALUE AST NEUBERGER BERMAN MID-CAP VALUE: seeks capital growth. Under normal market Neuberger Berman
conditions, the Portfolio primarily invests at least 80% of its net assets in the Management Inc.
common stocks of mid-cap companies. Under the Portfolio's value-oriented investment
approach, the Sub-advisor looks for well-managed companies whose stock prices are
undervalued and that may rise before other investors realize their worth.
SPECIALTY AST ALGER ALL-CAP GROWTH: seeks long-term capital growth. The Portfolio Fred Alger
invests primarily in equity securities, such as common or preferred stocks that Management, Inc.
are listed on U.S. exchanges or in the over-the-counter market. The Portfolio may
invest in the equity securities of companies of all sizes, and may emphasize either
larger or smaller companies at a given time based on the Sub-advisor's assessment of
particular companies and market conditions.
SPECIALTY AST GABELLI ALL-CAP VALUE: seeks capital growth. The Portfolio pursues its objective by GAMCO Investors,
investing primarily in readily marketable equity securities including common stocks, Inc.
preferred stocks and securities that may be converted at a later time into common
stock. The Portfolio may invest in the securities of companies of all sizes, and may
emphasize either larger or smaller companies at a given time based on the Sub-advisor's
assessment of particular companies and market conditions.
SPECIALTY AST T. ROWE PRICE NATURAL RESOURCES: seeks long-term capital growth T. Rowe Price
primarily through the common stocks of companies that own or develop natural Associates, Inc.
resources (such as energy products, precious metals and forest products) and other
basic commodities. The Portfolio normally invests primarily (at least 80% of its total
assets) in the common stocks of natural resource companies whose earnings and tangible
assets could benefit from accelerating inflation.
15
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
LARGE CAP AST ALLIANCEBERNSTEIN LARGE CAP GROWTH (formerly, AST Alliance Growth): Alliance Capital
GROWTH seeks long-term capital growth. The Portfolio invests at least 80% of its total Management, L.P.
assets in the equity securities of a limited number of large, carefully selected,
high-quality U.S. companies that are judged likely to achieve superior earnings growth.
LARGE CAP AST MFS GROWTH: seeks long-term capital growth and future income. Under Massachusetts
GROWTH normal market conditions, the Portfolio invests at least 80% of its total assets in Financial Services
common stocks and related securities, such as preferred stocks, convertible Company
securities and depositary receipts, of companies that the Sub-advisor believes offer
better than average prospects for long-term growth.
LARGE CAP AST MARSICO CAPITAL GROWTH: seeks capital growth. Income realization is not Marsico Capital
GROWTH an investment objective and any income realized on the Portfolio's investments, Management, LLC
therefore, will be incidental to the Portfolio's objective. The Portfolio will pursue
its objective by investing primarily in common stocks of larger, more established
companies.
LARGE CAP AST GOLDMAN SACHS CONCENTRATED GROWTH: seeks growth of capital in a Goldman Sachs
GROWTH manner consistent with the preservation of capital. Realization of income is not Asset Management,
a significant investment consideration and any income realized on the Portfolio's L.P.
investments, therefore, will be incidental to the Portfolio's objective. The Portfolio
will pursue its objective by investing primarily in equity securities of companies that
the Sub-advisor believes have potential to achieve capital appreciation over the
long-term.
LARGE CAP AST DEAM LARGE-CAP VALUE: seeks maximum growth of capital by investing Deutsche Asset
VALUE primarily in the value stocks of larger companies. The Portfolio pursues its Management, Inc.
objective, under normal market conditions, by primarily investing at least 80% of the
value of its assets in the equity securities of large-sized companies included in the
Russell 1000(R) Value Index.
LARGE CAP AST ALLIANCEBERNSTEIN GROWTH + VALUE: seeks capital growth by investing Alliance Capital
BLEND approximately 50% of its assets in growth stocks of large companies and Management, L.P.
approximately 50% of its assets in value stocks of large companies. The Portfolio will
invest primarily in common stocks of large U.S. companies included in the Russell
1000(R) Index.
LARGE CAP AST ALLIANCEBERNSTEIN CORE VALUE (formerly AST Sanford Bernstein Core Alliance Capital
VALUE Value): seeks long-term capital growth by investing primarily in common stocks. Management, L.P.
The Sub-advisor expects that the majority of the Portfolio's
assets will be invested in the common stocks of large companies
that appear to be undervalued.
SPECIALTY AST COHEN & STEERS REALTY: seeks to maximize total return through Cohen & Steers
investment in real estate securities. The Portfolio pursues its investment Capital
objective by investing, under normal circumstances, at least 80% of its net Management, Inc.
assets in securities of real estate issuers.
16
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
LARGE CAP AST ALLIANCEBERNSTEIN MANAGED INDEX 500 (formerly, AST Sanford Bernstein Alliance Capital
BLEND Managed Index 500): The Portfolio seeks to outperform the S&P 500 through Management, L.P.
stock selection resulting in different weightings of common stocks relative to the
index. The Portfolio will invest, under normal circumstances, at least 80% of its net
assets in securities included in the Standard & Poor's 500 Composite Stock Price Index.
LARGE CAP AST AMERICAN CENTURY INCOME & GROWTH: seeks capital growth with current American Century
VALUE income as a secondary objective. The Portfolio invests primarily in common Investment
stocks that offer potential for capital growth, and may, consistent with its Management, Inc.
investment objective, invest in stocks that offer potential for current income.
LARGE CAP AST ALLIANCEBERNSTEIN GROWTH & INCOME: seeks long-term growth of capital Alliance Capital
VALUE and income while attempting to avoid excessive fluctuations in market value. The Management, L.P.
Portfolio normally will invest in common stocks (and securities convertible into common
stocks).
LARGE CAP AST HOTCHKIS & WILEY LARGE-CAP VALUE: seeks current income and long-term Hotchkis and Wiley
VALUE growth of income, as well as capital appreciation. The Portfolio invests, under Capital
normal circumstances, at least 80% of its net assets plus borrowings for Management, LLC
investment purposes in common stocks, of large cap U.S. companies, that have a high
cash dividend or payout yield relative to the market.
ASSET AST GLOBAL ALLOCATION (formerly AST DeAM Global Allocation): seeks to obtain Prudential
ALLOCATION/ the highest potential total return consistent with a specified level of risk Investments LLC
BALANCED tolerance. The Portfolio seeks to achieve its investment objective by
investing in several other AST Portfolios ("Underlying Portfolios"). The Portfolio
intends its strategy of investing in combinations of Underlying Portfolios to result in
investment diversification that an investor could otherwise achieve only by holding
numerous investments.
ASSET AST AMERICAN CENTURY STRATEGIC BALANCED: seeks capital growth and American Century
ALLOCATION/ current income. The Sub-advisor intends to maintain approximately 60% of the Investment
BALANCED Portfolio's assets in equity securities and the remainder in bonds and other fixed Management, Inc.
income securities.
ASSET AST T. ROWE PRICE ASSET ALLOCATION: seeks a high level of total return by T. Rowe Price
ALLOCATION/ investing primarily in a diversified portfolio of fixed income and equity securities. Associates, Inc.
BALANCED The Portfolio normally invests approximately 60% of its total assets in equity
securities and 40% in fixed income securities. This mix may vary depending on the
Sub-advisor's outlook for the markets.
FIXED INCOME AST T. ROWE PRICE GLOBAL BOND: seeks to provide high current income and T. Rowe Price
capital growth by investing in high quality foreign and U.S. dollar-denominated International, Inc.
bonds. The Portfolio will invest at least 80% of its total assets in fixed income
securities, including high quality bonds issued or guaranteed by U.S. or foreign
governments or their agencies and by foreign authorities, provinces and municipalities
as well as investment grade corporate bonds and mortgage and asset-backed securities of
U.S. and foreign issuers.
17
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
FIXED INCOME AST GOLDMAN SACHS HIGH YIELD: seeks a high level of current income and Goldman Sachs
may also consider the potential for capital appreciation. The Portfolio invests, Asset Management,
under normal circumstances, at least 80% of its net assets plus any borrowings L.P.
for investment purposes (measured at time of purchase) ("Net Assets") in high- yield,
fixed-income securities that, at the time of purchase, are non-investment grade
securities.
FIXED INCOME AST LORD ABBETT BOND-DEBENTURE: seeks high current income and the Lord, Abbett & Co.
opportunity for capital appreciation to produce a high total return. To pursue its LLC
objective, the Portfolio will invest, under normal circumstances, at least 80% of the
value of its assets in fixed income securities and normally invests primarily in high
yield and investment grade debt securities, securities convertible into common stock
and preferred stocks.
FIXED INCOME AST PIMCO TOTAL RETURN BOND seeks to maximize total return consistent with Pacific Investment
preservation of capital and prudent investment management. The Portfolio will Management
invest in a diversified portfolio of fixed-income securities of varying maturities. Company LLC
The average portfolio duration of the Portfolio generally will vary within a three- (PIMCO)
to six-year time frame based on the Sub-advisor's forecast for interest rates.
FIXED INCOME AST PIMCO LIMITED MATURITY BOND: seeks to maximize total return consistent Pacific Investment
with preservation of capital and prudent investment management. The Portfolio Management
will invest in a diversified portfolio of fixed-income securities of varying Company LLC
maturities. The average portfolio duration of the Portfolio generally will vary (PIMCO)
within a one- to three-year time frame based on the Sub-advisor's forecast for interest
rates.
FIXED INCOME AST MONEY MARKET: seeks high current income while maintaining high levels Wells Capital
of liquidity. The Portfolio attempts to accomplish its objective by maintaining a Management, Inc.
dollar-weighted average maturity of not more than 90 days and by investing in
securities which have effective maturities of not more than 397 days.
INTERNATIONAL GVIT DEVELOPING MARKETS: seeks long-term capital appreciation, under normal Gartmore Global
EQUITY conditions by investing at least 80% of its total assets in stocks of companies of Asset Management
any size based in the world's developing economies. Under normal market Trust/Gartmore
conditions, investments are maintained in at least six countries at all times and Global Partners
no more than 35% of total assets in any single one of them.
18
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
LARGE CAP ADVANTAGE C&B LARGE CAP VALUE FUND (formerly Equity Value): Seeks Wells Fargo Funds
VALUE maximum long-term total return, consistent with minimizing risk to principal. Management, LLC
The Portfolio will principally invest in large-capitalization securities, which the
Sub-advisor defines as securities of companies with market capitalizations of $1
billion or more.
LARGE CAP ADVANTAGE EQUITY INCOME FUND (formerly Equity Income): Seeks long-term Wells Fargo Funds
VALUE capital appreciation and above-average dividend income. The Portfolio invests in Management, LLC
the common stocks of large U.S. companies with strong return potential and
above-average dividend income. The Portfolio invests principally in securities of
companies with market capitalizations of $3 billion or more.
SPECIALTY RYDEX VARIABLE TRUST -- NOVA: seeks to provide investment results that match Rydex Investments
the performance of a specific benchmark on a daily basis. The fund's current benchmark
is 150% of the performance of the S&P 500(R) Index (the "underlying index"). If the
Fund meets its objective, the value of the Fund's shares will tend to increase on a
daily basis by 150% of the value of any increase in the underlying index. When the
value of the underlying index declines, the value of the Fund's shares should also
decrease on a daily basis by 150% of the value of any decrease in the underlying index
(e.g., if the underlying index goes down by 5%, the value of the Fund's shares should
go down by 7.5% on that day).
SPECIALTY RYDEX VARIABLE TRUST -- URSA: seeks to provide investment results that will Rydex Investments
inversely correlate to the performance of the S&P 500(R) Index (the "underlying
index"). If the Fund meets its objective, the value of the Fund's shares will tend to
increase during times when the value of the underlying index is decreasing. When the
value of the underlying index is increasing, however, the value of the Fund's shares
should decrease on a daily basis by an inversely proportionate amount (e.g., if the
underlying index goes up by 5%, the value of the Fund's shares should go down by 5% on
that day).
SPECIALTY RYDEX VARIABLE TRUST -- OTC: seeks to provide investment results that Rydex Investments
correspond to a benchmark for over-the-counter securities. The Fund's current benchmark
is the NASDAQ 100 Index(R) (the "underlying index"). If the Fund meets its objective,
the value of the Fund's shares should increase on a daily basis by the amount of any
increase in the value of the underlying index. However, when the value of the
underlying index declines, the value of the Fund's shares should also decrease on a
daily basis by the amount of the decrease in value of the underlying index. The Fund
invests principally in securities of companies included in the underlying index.
MID-CAP AIM VARIABLE INSURANCE FUNDS -- AIM V.I. DYNAMICS FUND -- SERIES I A I M Advisors,
GROWTH SHARES (formerly an Invesco Fund): seeks long-term capital growth. The Portfolio Inc.
pursues its objective by normally investing at least 65% of its assets in common stocks
of mid-sized companies that are included in the Russell Midcap Growth(R) Index at the
time of purchase.
19
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SPECIALTY AIM VARIABLE INSURANCE FUNDS -- AIM V.I. TECHNOLOGY FUND -- SERIES I A I M Advisors,
SHARES (formerly an Invesco Fund): seeks capital growth. The Portfolio normally Inc.
invests at least 80% of its net assets in the equity securities and equity-related
instruments of companies engaged in technology-related industries. These include, but
are not limited to, various applied technologies, hardware, software, semiconductors,
telecommunications equipment and services and service-related companies in information
technology.
SPECIALTY AIM VARIABLE INSURANCE FUNDS -- AIM V.I. HEALTH SCIENCES FUND -- A I M Advisors,
SERIES I SHARES (formerly an Invesco Fund): (Effective July 1, 2005, AIM V.I. Inc.
Health Sciences Fund will be renamed AIM V.I. Global Health Care Fund): seeks capital
growth. The Portfolio normally invests at least 80% of its net assets in the equity
securities and equity-related instruments of companies related to health care.
SPECIALTY AIM VARIABLE INSURANCE FUNDS -- AIM V.I. FINANCIAL SERVICES FUND -- A I M Advisors,
SERIES I SHARES (formerly an Invesco Fund): seeks capital growth. The Portfolio Inc.
normally invests at least 80% of its net assets in the equity securities and
equity-related instruments of companies involved in the financial services sector.
These companies include, but are not limited to, banks, insurance companies, investment
and miscellaneous industries, and suppliers to financial services companies.
INTERNATIONAL EVERGREEN VA INTERNATIONAL EQUITY (formerly Evergreen VA International Evergreen
EQUITY Growth): seeks long-term capital growth and secondarily, modest income. The Investment
Portfolio normally invests 80% of its assets in equity securities issued by Management
established, quality, non-U.S. companies located in countries with developed Company, LLC
markets and may purchase across all market capitalizations. The Portfolio normally
invests at least 65% of its assets in securities of companies in at least three
different countries (other than the U.S.).
SMALL CAP EVERGREEN VA GROWTH (formerly Evergreen VA Special Equity): seeks long-term Evergreen
GROWTH capital growth. The Portfolio invests at least 75% of its assets in common stocks Investment
of small- and medium-sized companies (i.e., companies whose market Management
capitalizations fall within the range of the Russell 2000(R) Growth Index, at the Company, LLC
time of purchase).
SPECIALTY EVERGREEN VA OMEGA: seeks long-term capital growth. The Portfolio invests Evergreen
primarily, and under normal conditions, substantially all of its assets in common Investment
stocks and securities convertible into common stocks of U.S. companies across Management
all market capitalizations. Company, LLC
INTERNATIONAL PROFUND VP EUROPE 30: seeks daily investment results, before fees and ProFund Advisors
EQUITY expenses, that correspond to the daily performance of the ProFunds Europe 30 LLC
Index. The ProFunds Europe 30 Index, created by ProFund Advisors, is composed of 30
companies whose principal offices are located in Europe and whose securities are traded
on U.S. exchanges or on the NASDAQ as depositary receipts or ordinary shares.
20
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SPECIALTY PROFUND VP ASIA 30: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the daily performance of the ProFunds Asia 30 Index. The LLC
ProFunds Asia 30 Index, created by ProFund Advisors, is composed of 30 companies whose
principal offices are located in the Asia/Pacific region, excluding Japan, and whose
securities are traded on U.S. exchanges or on the NASDAQ as depository receipts or
ordinary shares.
SPECIALTY PROFUND VP JAPAN: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the daily performance of the Nikkei 225 Stock Average. LLC
Since the Japanese markets are not open when ProFund VP Japan values its shares,
ProFund VP Japan determines its success in meeting this investment objective by
comparing its daily return on a given day with the daily performance of related futures
contracts traded in the United States related to the Nikkei 225 Stock Average.
SPECIALTY PROFUND VP BANKS: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the daily performance of the Dow Jones U.S. Banks Index. LLC
The Dow Jones U.S. Banks Index measures the performance of the banking industry portion
of the U.S. equity market.
SPECIALTY PROFUND VP BASIC MATERIALS: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. Basic LLC
Materials Sector Index. The Dow Jones U.S. Basic Materials Sector Index measures the
performance of the basic materials economic sector of the U.S. equity market.
SPECIALTY PROFUND VP BIOTECHNOLOGY: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Biotechnology Index. The Dow Jones U.S. Biotechnology Index measures the performance of
the biotechnology industry portion of the U.S. equity market.
SPECIALTY PROFUND VP CONSUMER SERVICES (formerly, ProFund VP Consumer Non- ProFund Advisors
Cyclical): seeks daily investment results, before fees and expenses, that LLC
correspond to the daily performance of the Dow Jones U.S. Consumer Services Index. The
Dow Jones U.S. Consumer Services Index measures the performance of consumer spending in
the services industry of the U.S. equity market.
SPECIALTY PROFUND VP CONSUMER GOODS (formerly, ProFund VP Consumer Non- ProFund Advisors
Cyclical): seeks daily investment results, before fees and expenses, that LLC
correspond to the daily performance of the Dow Jones U.S. Consumer Goods Index. The Dow
Jones U.S. Consumer Goods Index measures the performance of consumer spending in the
goods industry of the U.S. equity market.
SPECIALTY PROFUND VP OIL & GAS (formerly, ProFund VP Energy): seeks daily investment ProFund Advisors
results, before fees and expenses, that correspond to the daily performance of LLC
the Dow Jones U.S. Oil & Gas Index. The Dow Jones U.S. Oil & Gas Sector Index measures
the performance of the energy sector of the U.S. equity market.
21
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SPECIALTY PROFUND VP FINANCIALS: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Financials Sector Index. The Dow Jones U.S. Financials Sector Index measures the
performance of the financial services economic sector of the U.S. equity market.
SPECIALTY PROFUND VP HEALTH CARE: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Health Care Index. The Dow Jones U.S. Health Care Index measures the performance of the
healthcare economic sector of the U.S. equity market.
SPECIALTY PROFUND VP INDUSTRIALS: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Industrials Index. The Dow Jones U.S. Industrials Index measures the performance of the
industrial economic sector of the U.S. equity market.
SPECIALTY PROFUND VP INTERNET: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the daily performance of the Dow Jones Composite Internet LLC
Index. The Dow Jones Composite Internet Index measures the performance of stocks in the
U.S. equity markets that generate the majority of their revenues from the Internet.
SPECIALTY PROFUND VP PHARMACEUTICALS: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Pharmaceuticals Index. The Dow Jones U.S. Pharmaceuticals Index measures the
performance of the pharmaceuticals industry portion of the U.S. equity market.
SPECIALTY PROFUND VP PRECIOUS METALS: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones Precious LLC
Metals Index. The Dow Jones Precious Metals Index measures the performance of the
precious metals mining industry.
SPECIALTY PROFUND VP REAL ESTATE: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. Real LLC
Estate Index. The Dow Jones U.S. Real Estate Index measures the performance of the real
estate industry portion of the U.S. equity market.
SPECIALTY PROFUND VP SEMICONDUCTOR: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Semiconductor Index. The Dow Jones U.S. Semiconductor Index measures the performance of
the semiconductor industry portion of the U.S. equity market.
SPECIALTY PROFUND VP TECHNOLOGY: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Technology Sector Index. The Dow Jones U.S. Technology Sector Index measures the
performance of the technology sector of the U.S. equity market.
SPECIALTY PROFUND VP TELECOMMUNICATIONS: seeks daily investment results, before fees ProFund Advisors
and expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Telecommunications Sector Index. The Dow Jones U.S. Telecommunications Sector Index
measures the performance of the telecommunications economic sector of the U.S. equity
market.
22
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SPECIALTY PROFUND VP UTILITIES: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the Dow Jones U.S. LLC
Utilities Sector Index. The Dow Jones U.S. Utilities Sector Index measures the
performance of the utilities economic sector of the U.S. equity market.
SPECIALTY PROFUND VP BULL: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the daily performance of the S&P 500(R) Index. LLC
SPECIALTY PROFUND VP BEAR: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the inverse (opposite) of the daily performance of the S&P LLC
500(R) Index. If ProFund VP Bear is successful in meeting its objective, its net asset
value should gain approximately the same, on a percentage basis, as any decrease in the
S&P 500(R) Index when the Index declines on a given day. Conversely, its net asset
value should lose approximately the same, on a percentage basis, as any increase in the
Index when the Index rises on a given day.
SPECIALTY PROFUND VP ULTRABULL: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to twice (200%) the daily performance of the S&P LLC
500(R) Index. Prior to May 1, 2003, ProFund VP UltraBull was named "ProFund VP Bull
Plus" and sought daily investment results that corresponded to one and one-half times
(150%) the daily performance of the S&P 500(R) Index. If ProFund VP UltraBull is
successful in meeting its objective, its net asset value should gain approximately
twice as much, on a percentage basis, as the S&P 500(R) Index when the Index rises on a
given day. Conversely, its net asset value should lose approximately twice as much, on
a percentage basis, as the Index when the Index declines on a given day.
SPECIALTY PROFUND VP OTC: seeks daily investment results, before fees and expenses, ProFund Advisors
that correspond to the daily performance of the NASDAQ-100 Index(R). "OTC" in LLC
the name of ProFund VP OTC refers to securities that do not trade on a U.S. securities
exchange registered under the Securities Exchange Act of 1934.
SPECIALTY PROFUND VP SHORT OTC: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the inverse (opposite) of the daily performance of LLC
the NASDAQ-100 Index(R). If ProFund VP Short OTC is successful in meeting its
objective, its net asset value should gain approximately the same, on a percentage
basis, as any decrease in the NASDAQ-100 Index(R) when the Index declines on a given
day. Conversely, its net asset value should lose approximately the same, on a
percentage basis, as any increase in the Index when the Index rises on a given day.
"OTC" in the name of ProFund VP Short OTC refers to securities that do not trade on a
U.S. securities exchange registered under the Securities Exchange Act of 1934.
23
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SPECIALTY PROFUND VP ULTRAOTC: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to twice (200%) the daily performance of the LLC
NASDAQ-100 Index(R). If ProFund VP UltraOTC is successful in meeting its objective, its
net asset value should gain approximately twice as much, on a percentage basis, as the
NASDAQ-100 Index(R) when the Index rises on a given day. Conversely, its net asset
value should lose approximately twice as much, on a percentage basis, as the Index when
the Index declines on a given day. "OTC" in the name of ProFund VP UltraOTC refers to
securities that do not trade on a U.S. securities exchange registered under the
Securities Exchange Act of 1934.
MID CAP VALUE PROFUND VP MID-CAP VALUE: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the daily performance of the S&P MidCap 400/ LLC
Barra Value Index(R). The S&P MidCap400/Barra Value Index(R) is a float adjusted market
capitalization weighted index comprised of the stocks in the S&P MidCap 400 Index that
have comparatively low price-to-book ratios as determined before each semiannual
rebalance date.
MID CAP PROFUND VP MID-CAP GROWTH: seeks daily investment results, before fees and ProFund Advisors
GROWTH expenses, that correspond to the daily performance of the S&P MidCap 400/ LLC
Barra Growth Index(R). The S&P MidCap 400/Barra Growth Index(R) is a float adjusted
market capitalization weighted index comprised of the stocks in the S&P MidCap 400
Index(R) that have comparatively high price-to-book ratios as determined before each
semiannual rebalance date.
SPECIALTY PROFUND VP ULTRAMID-CAP: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to twice (200%) the daily performance of the S&P LLC
MidCap 400 Index(R). If ProFund VP UltraMid-Cap is successful in meeting its objective,
its net asset value should gain approximately twice as much, on a percentage basis, as
the S&P MidCap 400 Index(R) when the Index rises on a given day. Conversely, its net
asset value should lose approximately twice as much, on a percentage basis, as the
Index when the Index declines on a given day.
SMALL CAP PROFUND VP SMALL-CAP VALUE: seeks daily investment results, before fees and ProFund Advisors
VALUE expenses, that correspond to the daily performance of the S&P SmallCap 600/ LLC
Barra Value Index(R). The S&P SmallCap 600/Barra Value Index(R) is a float adjusted
market capitalization weighted index comprised of the stocks in the S&P SmallCap
600/Barra Value Index(R) that have comparatively low price-to-book ratios as determined
before each semiannual rebalance date.
SMALL CAP PROFUND VP SMALL-CAP GROWTH: seeks daily investment results, before fees ProFund Advisors
GROWTH and expenses, that correspond to the daily performance of the S&P SmallCap LLC
600/Barra Growth Index(R). The S&P SmallCap 600/Barra Growth Index(R) is a float
adjusted market capitalization weighted index comprised of the stocks in the S&P
SmallCap 600/Barra Growth Index(R) that have comparatively high price-to- book ratios
as determined before each semiannual rebalance date.
24
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- ---------------------------------------------------------------------------------------------------------------------------
SPECIALTY PROFUND VP ULTRASMALL-CAP: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to twice (200%) the daily performance of the Russell LLC
2000(R) Index. If ProFund VP UltraSmall-Cap is successful in meeting its objective, its
net asset value should gain approximately twice as much, on a percentage basis, as the
Russell 2000 Index(R) when the Index rises on a given day. Conversely, its net asset
value should lose approximately twice as much, on a percentage basis, as the Index when
the Index declines on a given day.
SPECIALTY PROFUND VP U.S. GOVERNMENT PLUS: seeks daily investment results, before ProFund Advisors
fees and expenses, that correspond to one and one-quarter times (125%) the LLC
daily price movement of the most recently issued 30-year U.S. Treasury bond ("Long
Bond"). In accordance with its stated objective, the net asset value of ProFund VP U.S.
Government Plus generally should decrease as interest rates rise. If ProFund VP U.S.
Government Plus is successful in meeting its objective, its net asset value should gain
approximately one and one-quarter times (125%) as much, on a percentage basis, as any
daily increase in the price of the Long Bond on a given day. Conversely, its net asset
value should lose approximately one and one-quarter as much, on a percentage basis, as
any daily decrease in the price of the Long Bond on a given day.
SPECIALTY PROFUND VP RISING RATES OPPORTUNITY: seeks daily investment results, before ProFund Advisors
fees and expenses, that correspond to one and one-quarter times (125%) the LLC
inverse (opposite) of the daily price movement of the most recently issued 30-year U.S.
Treasury bond ("Long Bond"). In accordance with its stated objective, the net asset
value of ProFund VP Rising Rates Opportunity generally should decrease as interest
rates fall. If ProFund VP Rising Rates Opportunity is successful in meeting its
objective, its net asset value should gain approximately one and one-quarter times as
much, on a percentage basis, as any daily decrease in the Long Bond on a given day.
Conversely, its net asset value should lose approximately one and one-quarter times as
much, on a percentage basis, as any daily increase in the Long Bond on a given day.
LARGE CAP PROFUND VP LARGE-CAP GROWTH: seeks daily investment results, before fees ProFund Advisors
GROWTH and expenses, that correspond to the daily performance of the S&P 500/Barra LLC
Growth Index(R). The S&P 500/Barra Growth Index is a float adjusted market
capitalization weighted index comprised of the stocks in the S&P 500 Index that have
comparatively high price-to-book ratios as determined before each semiannual rebalance
date.
LARGE CAP PROFUND VP LARGE-CAP VALUE: seeks daily investment results, before fees and ProFund Advisors
VALUE expenses, that correspond to the daily performance of the S&P 500/Barra Value LLC
Index(R). The S&P 500/Barra Value Index is a float adjusted market capitalization
weighted index comprised of the stocks in the S&P 500 Index that have comparatively low
price-to-book ratios as determined before each semiannual rebalance date.
25
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- -----------------------------------------------------------------------------------------------------------------------------
SPECIALTY PROFUND VP SHORT SMALL-CAP: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the inverse (opposite) of the daily performance of LLC
the Russell 2000(R) Index. If ProFund VP Short Small-Cap is successful in meeting its
objective, its net asset value should gain approximately the same amount, on a
percentage basis, as any decrease in the Russell 2000 Index when the Index declines on
a given day. Conversely, its net asset value should lose approximately the same amount,
on a percentage basis, as any increase in the Index when the Index rises on a given
day.
SPECIALTY PROFUND VP SHORT MID-CAP: seeks daily investment results, before fees and ProFund Advisors
expenses, that correspond to the inverse (opposite) of the daily performance of LLC
the S&P MidCap 400 Index(R). If ProFund VP Short Mid-Cap is successful in meeting its
objective, its net asset value should gain approximately the same amount, on a
percentage basis, as any decrease in the S&P MidCap 400 Index when the Index declines
on a given day. Conversely, its net asset value should lose approximately the same
amount, on a percentage basis, as any increase in the Index when the Index rises on a
given day.
SPECIALTY ACCESS VP HIGH YIELD: seeks to provide investment results that correspond ProFund Advisors
generally to the total return of the high yield market consistent with maintaining LLC
reasonable liquidity. The Access VP High Yield, created by ProFund Advisors, will
achieve its high yield exposure primarily through CDSs but may invest in high yield
debt instruments ("junk bonds"), Interest rate swap agreements and futures contracts,
and other debt and money market instruments without limitation, consistent with
applicable regulations. Under normal market conditions, the fund will invest at least
80% of its net assets in credit default swaps and other financial instruments that in
combination have economic characteristics similar to the high yield debt market and/or
in high yield debt securities. The fund seeks to maintain exposure to the high yield
bond markets regardless of market conditions and without taking defensive positions.
SPECIALTY FIRST TRUST(R) 10 UNCOMMON VALUES: seeks to provide above-average capital First Trust Advisors
appreciation. The Portfolio seeks to achieve its objective by investing primarily in L.P.
the ten common stocks selected by the Investment Policy Committee of Lehman Brothers
Inc. ("Lehman Brothers") with the assistance of the Research Department of Lehman
Brothers which, in their opinion have the greatest potential for capital appreciation
during the next year. The stocks included in the Portfolio are adjusted annually on or
about July 1st in accordance with the selections of Lehman Brothers.
SPECIALTY TARGET MANAGED VIP: seeks to provide above-average total return. The Portfolio First Trust Advisors
seeks to achieve its objective by investing in common stocks of the most L.P.
attractive companies that are identified by a model based on six uniquely specialized
strategies -- The Dow(sm) DART 5, the European Target 20, the Nasdaq(R) Target 15, the
S&P Target 24, the Target Small Cap and the Value Line(R) Target 25.
26
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- -----------------------------------------------------------------------------------------------------------------------------
SPECIALTY THE DOW(SM) DART 10: seeks to provide above-average total return. The First Trust Advisors
Portfolio seeks to achieve its objective by investing in common stocks issued by L.P.
companies that are expected to provide income and to have the potential for capital
appreciation. The Portfolio invests primarily in the common stocks of the ten companies
in the DJIA that have the highest combined dividend yields and buyback ratios on or
about the applicable stock selection date.
SPECIALTY GLOBAL DIVIDEND TARGET 15 (formerly, Global Target 15): seeks to provide First Trust Advisors
above-average total return. The Portfolio seeks to achieve its objective by L.P.
investing in common stocks issued by companies that are expected to provide income and
to have the potential for capital appreciation. The Portfolio invests primarily in the
common stocks of the companies which are components of the DJIA, the Financial Times
Industrial Ordinary Share Index ("FT Index") and the Hang Seng Index. The Portfolio
primarily consists of common stocks of the five companies with the lowest per share
stock prices of the ten companies in each of the DJIA, FT Index and Hang Seng Index,
respectively, that have the highest dividend yield in the respective index on or about
the applicable stock selection date.
SPECIALTY S&P(R) Target 24: seeks to provide above-average total return. The Portfolio seeks First Trust Advisors
to achieve its objective by investing in common stocks issued by companies that L.P.
have the potential for capital appreciation. The Portfolio invests primarily in the
common stocks of twenty-four companies selected from a subset of the stocks included in
the Standard & Poor's 500 Composite Stock Price Index(R). The subset of stocks will be
taken from each of the eight largest economic sectors of the S&P 500 Index(R) based on
the sector's market capitalization.
SPECIALTY THE DOW(SM) TARGET DIVIDEND seeks to provide above-average total return. The First Trust Advisors
Portfolio seeks to achieve its objective by investing in common stocks issued by L.P.
companies that are expected to provide income and to have the potential for
capital appreciation. The Portfolio invests primarily in the 20 common stocks
from the Dow Jones Select Dividend Index(SM) with the best overall ranking on
both the change in return on assets over the last 12 months and price-to-book
ratio as of the close of business on or about the applicable stock selection date.
SPECIALTY VALUE LINE(R) TARGET 25: seeks to provide above-average capital appreciation. First Trust Advisors
The Portfolio seeks to achieve its objective by investing in 25 of the 100 L.P.
common stocks that Value Line(R) gives a #1 ranking for Timeliness(TM) which have
recently exhibited certain positive financial attributes as of the close of business on
the applicable stock selection date through a multi-step process.
SPECIALTY NASDAQ(R) TARGET 15: seeks to provide above-average total return. The Portfolio First Trust Advisors
seeks to achieve its objective by investing in common stocks issued by L.P.
companies that are expected to have the potential for capital appreciation. The
Portfolio invests primarily in the common stocks of fifteen companies selected from a
pre-screened subset of the stocks included in the Nasdaq-100 Index(R) on or about the
applicable stock selection date through a multi-step process.
27
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Investment Options continued
PORTFOLIO
STYLE/ ADVISOR/
TYPE INVESTMENT OBJECTIVES/POLICIES SUB-ADVISOR
- -----------------------------------------------------------------------------------------------------------------------------
INTERNATIONAL THE PRUDENTIAL SERIES FUND, INC. -- SP WILLIAM BLAIR INTERNATIONAL Prudential
EQUITY GROWTH: Seeks long-term capital appreciation. The Portfolio invests primarily in Investments LLC/
stocks of large and medium-sized companies located in countries included in the William Blair &
Morgan Stanley Capital International All Country World Ex-U.S. Index. Under Company, LLC
normal market conditions, the portfolio invests at least 80% of its net assets in
equity securities. The Portfolio's assets normally will be allocated among not fewer
than six different countries and will not concentrate investments in any particular
industry.
"Standard & Poor's(R)," "S&P(R)," "S&P 500(R)," "Standard & Poor's 500," and
"500" are trademarks of the McGraw-Hill Companies, Inc. and have been licensed
for use by American Skandia Investment Services, Incorporated. The Portfolio is
not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard &
Poor's makes no representation regarding the advisability of investing in the
Portfolio.
"Dow Jones Industrial Average(SM)", "DJIA(SM)", "Dow Industrials(SM)", "Dow
Jones Select Dividend Index(SM)", and "The Dow 10(SM)", are service marks of Dow
Jones & Company, Inc. ("Dow Jones") and have been licensed for use for certain
purposes by First Trust Advisors L.P. ("First Trust"). The portfolios,
including, and in particular the Target Managed VIP portfolio The Dow(SM) DART
10 portfolio, and The Dow (SM) Target Dividend Portfolio are not endorsed, sold
or promoted by Dow Jones, and Dow Jones makes no representation regarding the
advisability of investing in such products.
"Standard & Poor's," "S&P," "S&P 500," "Standard & Poor's 500," and "500" are
trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by
First Trust on behalf of the S&P Target 24 Portfolio and the Target Managed VIP
Portfolio. The Portfolios are not sponsored, endorsed, managed, sold or promoted
by Standard & Poor's and Standard & Poor's makes no representation regarding the
advisability of investing in the Portfolio.
"The Nasdaq 100(R)", "Nasdaq-100 Index(R)", "Nasdaq Stock Market(R)", and
"Nasdaq(R)" are trade or service marks of The Nasdaq Stock Market, Inc. (which
with its affiliates are the "Corporations") and have been licensed for use by
First Trust. The Nasdaq Target 15 Portfolio and Target Managed VIP Portfolio
have not been passed on by the Corporations as to its legality or suitability.
The Nasdaq Target 15 Portfolio and Target Managed VIP Portfolio are not issued,
endorsed, sponsored, managed, sold or promoted by the Corporations. THE
CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE NASDAQ
TARGET 15 PORTFOLIO OR THE TARGET MANAGED VIP PORTFOLIO.
28
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
"Value Line(R)," "The Value Line Investment Survey," and "Value Line
Timeliness(TM) Ranking System" are registered trademarks of Value Line
Securities, Inc. or Value Line Publishing, Inc. The Target Managed VIP(R)
Portfolio is not sponsored, recommended, sold or promoted by Value Line
Publishing, Inc., Value Line, Inc. or Value Line Securities, Inc. ("Value
Line"). Value Line makes no representation regarding the advisability of
investing in the Portfolio.
The First Trust(R) 10 Uncommon Values portfolio is not sponsored or created by
Lehman Brothers, Inc. ("Lehman Brothers"). Lehman Brothers' only relationship to
First Trust is the licensing of certain trademarks and trade names of Lehman
Brothers and of the "10 Uncommon Values" which is determined, composed and
calculated by Lehman Brothers without regard to First Trust or the First
Trust(R) 10 Uncommon Values portfolio.
Dow Jones has no relationship to the ProFunds VP, other than the licensing of
the Dow Jones sector indices and its service marks for use in connection with
the ProFunds VP. The ProFunds VP are not sponsored, endorsed, sold, or promoted
by Standard & Poor's or NASDAQ, and neither Standard & Poor's nor NASDAQ makes
any representations regarding the advisability of investing in the ProFunds VP.
WHAT ARE THE FIXED ALLOCATIONS?
We offer Fixed Allocations of different durations during the accumulation
period. These "Fixed Allocations" earn a guaranteed fixed rate of interest for a
specified period of time, called the "Guarantee Period." In most states, we
offer Fixed Allocations with Guarantee Periods from 1 to 10 years. We may also
offer special purpose Fixed Allocations for use with certain optional investment
programs. We guarantee the fixed rate for the entire Guarantee Period. However,
if you withdraw or transfer Account Value before the end of the Guarantee
Period, we will adjust the value of your withdrawal or transfer based on a
formula, called a "Market Value Adjustment." The Market Value Adjustment can
either be positive or negative, depending on the rates that are currently being
credited on Fixed Allocations. Please refer to the section entitled "How does
the Market Value Adjustment Work?" for a description of the formula along with
examples of how it is calculated. You may allocate Account Value to more than
one Fixed Allocation at a time.
Fixed Allocations may not be available in all states. Availability of
Fixed Allocations is subject to change and may differ by state and by the
annuity product you purchase. Please call American Skandia at 1-800-752-6342 to
determine availability of Fixed Allocations in your state and for your annuity
product.
29
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Fees and Charges
The charges under the contracts are designed to cover, in the aggregate, our
direct and indirect costs of selling, administering and providing benefits under
the contracts. They are also designed, in the aggregate, to compensate us for
the risks of loss we assume pursuant to the contracts. If, as we expect, the
charges that we collect from the contracts exceed our total costs in connection
with the contracts, we will earn a profit. Otherwise we will incur a loss. For
example, American Skandia may make a profit on the Insurance Charge if, over
time, the actual costs of providing the guaranteed insurance obligations under
the Annuity are less than the amount we deduct for the Insurance Charge. To the
extent we make a profit on the Insurance Charge, such profit may be used for any
other corporate purpose, including payment of other expenses that American
Skandia incurs in promoting, distributing, issuing and administering the
Annuity.
The rates of certain of our charges have been set with reference to
estimates of the amount of specific types of expenses or risks that we will
incur. In most cases, this prospectus identifies such expenses or risks in the
name of the charge; however, the fact that any charge bears the name of, or is
designed primarily to defray a particular expense or risk does not mean that the
amount we collect from that charge will never be more than the amount of such
expense or risk, nor does it mean that we may not also be compensated for such
expense or risk out of any other charges we are permitted to deduct by the terms
of the contract. A portion of the proceeds that American Skandia receives from
charges that apply solely to the variable investment options may include amounts
based on market appreciation of the variable investment option values.
WHAT ARE THE CONTRACT FEES AND CHARGES?
There is no Contingent Deferred Sales Charge applied if you surrender your
Annuity or make a partial withdrawal.
TRANSFER FEE: Currently, you may make twenty (20) free transfers between
investment options each Annuity Year. We will charge $10.00 for each transfer
after the twentieth in each Annuity Year. We do not consider transfers made as
part of a dollar cost averaging, automatic rebalancing or asset allocation
program when we count the twenty free transfers. All transfers made on the same
day will be treated as one (1) transfer. Renewals or transfers of Account Value
from a Fixed Allocation at the end of its Guarantee Period are not subject to
the Transfer Fee and are not counted toward the twenty free transfers. We may
reduce the number of free transfers allowable each Annuity Year (subject to a
minimum of eight) without charging a Transfer Fee unless you make use of
electronic means to transmit your transfer requests. We may eliminate the
Transfer Fee for transfer requests transmitted electronically or through other
means that reduce our processing costs. If enrolled in any program that does not
permit transfer requests to be transmitted electronically, the Transfer Fee will
not be waived.
ANNUAL MAINTENANCE FEE: During the accumulation period we deduct an Annual
Maintenance Fee. The Annual Maintenance Fee is $35.00 or 2% of your Account
Value invested in the variable investment options, whichever is less. This fee
will be deducted annually on the anniversary of the Issue Date of your Annuity
or, if you surrender your Annuity during the Annuity Year, the fee is deducted
at the time of surrender. Currently, the Annual Maintenance Fee is only deducted
if your Account Value is less than $50,000 on the anniversary of the Issue Date
or at the time of surrender. We may increase the Annual Maintenance Fee.
However, any increase will only apply to Annuities issued after the date of the
increase.
TAX CHARGE: Several states and some municipalities charge premium taxes or
similar taxes on annuities that we are required to pay. The amount of tax will
vary from jurisdiction to jurisdiction and is subject to change. The tax charge
currently ranges up to 31/2% of your premium and is designed to approximate the
taxes that we are required to pay. We generally will deduct the charge at the
time the tax is imposed, but may also decide to deduct the charge from each
Purchase Payment at the time of a withdrawal or surrender of your Annuity or at
the time you elect to begin receiving annuity payments. We may assess a charge
against the Sub-accounts and the Fixed Allocations equal to any taxes which may
be imposed upon the separate accounts. We will pay company income taxes on the
taxable corporate earnings created by this separate account product. While we
may consider company income taxes when pricing our products, we do not currently
include such income taxes in the tax charges you pay under the contract. We will
periodically review the issue of charging for these taxes and may impose a
charge in the future.
In calculating our corporate income tax liability, we derive certain
corporate income tax benefits associated with the investment of company assets,
including separate account assets, which are treated as company assets under
applicable income tax law. These benefits reduce our overall corporate income
tax liability. Under current law, such benefits may
30
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
include foreign tax credits and corporate dividends received deductions. We do
not pass these tax benefits through to holders of the separate account annuity
contracts because (i) the contract owners are not the owners of the assets
generating these benefits under applicable income tax law and (ii) we do not
currently include company income taxes in the tax charges you pay under the
contract.
WHAT CHARGES APPLY SOLELY TO THE VARIABLE INVESTMENT OPTIONS?
INSURANCE CHARGE: We deduct an Insurance Charge daily. The charge is assessed
against the average daily assets allocated to the Sub-accounts and is equal to
0.65% on an annual basis. The Insurance Charge is the combination of the
Mortality & Expense Risk Charge (0.50%) and the Administration Charge (0.15%).
The Insurance Charge is intended to compensate American Skandia for providing
the insurance benefits under the Annuity, including the Annuity's basic death
benefit that provides guaranteed benefits to your beneficiaries even if the
market declines and the risk that persons we guarantee annuity payments to will
live longer than our assumptions. The charge also covers administrative costs
associated with providing the Annuity benefits, including preparation of the
contract, confirmation statements, annual account statements and annual reports,
legal and accounting fees as well as various related expenses. Finally, the
charge covers the risk that our assumptions about the mortality risks and
expenses under this Annuity are incorrect and that we have agreed not to
increase these charges over time despite our actual costs. We may increase the
portion of the total Insurance Charge that is deducted for administrative costs;
however, any increase will only apply to Annuities issued after the date of the
increase.
The Insurance Charge is not deducted against assets allocated to a Fixed
Allocation. However, the amount we credit to Fixed Allocations may also reflect
similar assumptions about the insurance guarantees provided under the Annuity.
OPTIONAL BENEFITS FOR WHICH WE ASSESS A CHARGE SOLELY AGAINST THE VARIABLE
INVESTMENT OPTIONS: If you elect to purchase certain optional benefits, we will
deduct an additional charge on a daily basis solely from your Account Value
allocated to the Sub-accounts. The additional charge is included in the daily
calculation of the Unit Price for each Sub-account. We may assess charges for
other optional benefits on a different basis as described elsewhere in the
prospectus. Please refer to the sections entitled "Living Benefit Programs" and
"Death Benefit" for a description of the charge for each Optional Benefit.
WHAT FEES AND EXPENSES ARE INCURRED BY THE PORTFOLIOS?
Each Portfolio incurs total annual operating expenses comprised of an investment
management fee, other expenses and any distribution and service (12b-1) fees
that may apply. These fees and expenses are reflected daily by each Portfolio
before it provides American Skandia with the net asset value as of the close of
business each day. More detailed information about fees and expenses can be
found in the prospectuses for the Portfolios.
WHAT CHARGES APPLY TO THE FIXED ALLOCATIONS?
No specific fee or expenses are deducted when determining the rate we credit to
a Fixed Allocation. However, for some of the same reasons that we deduct the
Insurance Charge against Account Value allocated to the Sub-accounts, we also
take into consideration mortality, expense, administration, profit and other
factors in determining the interest rates we credit to Fixed Allocations. Any
Tax Charge applies to amounts that are taken from the variable investment
options or the Fixed Allocations. A Market Value Adjustment may also apply to
transfers, certain withdrawals, surrender or annuitization from a Fixed
Allocation.
WHAT CHARGES APPLY IF I CHOOSE AN ANNUITY PAYMENT OPTION?
If you select a fixed payment option, the amount of each fixed payment will
depend on the Account Value of your Annuity when you elected to annuitize. There
is no specific charge deducted from these payments; however, the amount of each
annuity payment reflects assumptions about our insurance expenses. If you select
a variable payment option that we may offer, then the amount of your benefits
will reflect changes in the value of your Annuity and will be subject to charges
that apply under the variable immediate annuity option. Also a tax charge may
apply (see "Tax Charge" above).
31
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Fees and Charges continued
EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES
We may reduce or eliminate certain fees and charges or alter the manner in which
the particular fee or charge is deducted. For example, we may reduce or
eliminate the amount of the Annual Maintenance Fee or reduce the portion of the
total Insurance Charge that is deducted as an Administration Charge. Generally,
these types of changes will be based on a reduction to our sales, maintenance or
administrative expenses due to the nature of the individual or group purchasing
the Annuity. Some of the factors we might consider in making such a decision
are: (a) the size and type of group; (b) the number of Annuities purchased by an
Owner; (c) the amount of Purchase Payments or likelihood of additional Purchase
Payments; and/or (d) other transactions where sales, maintenance or
administrative expenses are likely to be reduced. We will not discriminate
unfairly between Annuity purchasers if and when we reduce any fees and charges.
32
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Purchasing Your Annuity
WHAT ARE OUR REQUIREMENTS FOR PURCHASING THE ANNUITY?
This Annuity is designed for sale solely in connection with investment advisory
services provided by an Advisor or to certain other owners described in the
third paragraph under "Purchasing Your Annuity -- What Are Our Requirements for
Purchasing the Annuity? -- Initial Purchase Payment."
INITIAL PURCHASE PAYMENT: You must make a minimum initial Purchase Payment
of $5,000. However, if you decide to make payments under a systematic investment
or "bank drafting" program, we will accept a lower initial Purchase Payment
provided that, within the first Annuity Year, you make at least $5,000 in total
Purchase Payments.
Where allowed by law, we must approve any initial and additional Purchase
Payments of $1,000,000 or more. We may apply certain limitations and/or
restrictions on the Annuity as a condition of our acceptance, including limiting
the liquidity features or the Death Benefit protection provided under the
Annuity, limiting the right to make additional Purchase Payments, changing the
number of transfers allowable under the Annuity or restricting the Sub-accounts
or Fixed Allocations that are available. Other limitations and/or restrictions
may apply.
The minimum initial Purchase Payment is reduced to $1,000 on Annuities
owned by: (a) any parent company, affiliate or subsidiary of ours; (b) an
officer, director, employee, retiree, sales representative, or in the case of an
affiliated broker-dealer, registered representative of such company; (c) a
director, officer or trustee of any underlying mutual fund; (d) a director,
officer or employee of any investment manager, sub-advisor, transfer agent,
custodian, auditing, legal or administrative services provider that is providing
investment management, advisory, transfer agency, custodianship, auditing, legal
and/or administrative services to an underlying mutual fund or any affiliate of
such firm; (e) a director, officer, employee or registered representative of a
broker-dealer or insurance agency that has a then current selling agreement with
us and/or with American Skandia Marketing, Incorporated; (f) a director,
officer, employee or authorized representative of any firm providing us or our
affiliates with regular legal, actuarial, auditing, underwriting, claims,
administrative, computer support, marketing, office or other services; (g) the
then current spouse of any such person noted in (b) through (f), above; (h) the
parents of any such person noted in (b) through (g), above; (i) the child(ren)
or other legal dependent under the age of 21 of any such person noted in (b)
through (h) above; and (j) the siblings of any such persons noted in (b) through
(h) above.
Except as noted below, Purchase Payments must be submitted by check drawn
on a U.S. bank, in U.S. dollars, and made payable to American Skandia. Purchase
Payments may also be submitted via 1035 exchange or direct transfer of funds.
Under certain circumstances, Purchase Payments may be transmitted to American
Skandia via wiring funds through your investment professional's broker-dealer
firm. Additional Purchase Payments may also be applied to your Annuity under an
arrangement called "bank drafting" where you authorize us to deduct money
directly from your bank account. We may reject any payment if it is received in
an unacceptable form. Our acceptance of a check is subject to our ability to
collect funds.
AGE RESTRICTIONS: There is no age restriction to purchase the Annuity.
However, the basic Death Benefit provides greater protection for persons under
age 85. There is no Contingent Deferred Sales Charge deducted upon surrender or
partial withdrawal. However, if you take a distribution prior to age 591/2, you
may be subject to a 10% penalty in addition to ordinary income taxes on any
gain. The availability and level of protection of certain optional benefits may
vary based on the age of the Owner as of the Issue Date of the Annuity or the
date of the Owner's death.
OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS: We will ask you to name the
Owner(s), Annuitant and one or more Beneficiaries for your Annuity.
- - Owner: The Owner(s) holds all rights under the Annuity. You may name up to
two Owners in which case all ownership rights are held jointly. Generally
joint owners are required to act jointly; however, if each owner provides
us with an instruction that we find acceptable, we will permit each owner
to act separately. All information and documents that we are required to
send you will be sent to the first named owner. This Annuity does not
provide a right of survivorship. Refer to the Glossary of Terms for a
complete description of the term "Owner."
- - Annuitant: The Annuitant is the person we agree to make annuity payments
to and upon whose life we continue to make such payments. You must name an
Annuitant who is a natural person. We do not accept a designation of joint
Annuitants during the accumulation period. Where allowed by law, you may
name one or more Contingent Annuitants. A Contingent Annuitant will become
the Annuitant if the Annuitant dies before the Annuity Date. Please refer
to the discussion of "Considerations for Contingent Annuitants" in the Tax
Considerations section of the Prospectus.
- - Beneficiary: The Beneficiary is the person(s) or entity you name to
receive the death benefit. Your beneficiary designation must be the exact
name of your beneficiary, not only a reference to the beneficiary's
relationship to you. For example, a designation of "surviving spouse"
would not be acceptable. If no beneficiary is named the death benefit will
be paid to you or your estate.
33
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Managing Your Annuity continued
Your right to make certain designations may be limited if your Annuity is
to be used as an IRA or other "qualified" investment that is given beneficial
tax treatment under the Code. You should seek competent tax advice on the
income, estate and gift tax implications of your designations.
MAY I CHANGE THE OWNER, ANNUITANT AND BENEFICIARY DESIGNATIONS?
You may change the Owner, Annuitant and Beneficiary designations by sending us a
request in writing. Upon an ownership change, any automated investment or
withdrawal programs will be canceled. The new owner must submit the applicable
program enrollment if they wish to participate in such a program. Where allowed
by law, such changes will be subject to our acceptance. Some of the changes we
will not accept include, but are not limited to:
- - a new Owner subsequent to the death of the Owner or the first of any joint
Owners to die, except where a spouse-Beneficiary has become the Owner as a
result of an Owner's death;
- - a new Annuitant subsequent to the Annuity Date;
- - for "non-qualified" investments, a new Annuitant prior to the Annuity Date
if the Annuity is owned by an entity; and
- - a change in Beneficiary if the Owner had previously made the designation
irrevocable.
SPOUSAL OWNERS/SPOUSAL BENEFICIARIES
If an Annuity is co-owned by spouses, we will assume that the sole primary
Beneficiary is the surviving spouse that was named as the co-owner unless you
elect an alternative Beneficiary designation. Unless you elect an alternative
Beneficiary designation, upon the death of either spousal Owner, the surviving
spouse may elect to assume ownership of the Annuity instead of taking the Death
Benefit payment. The Death Benefit that would have been payable will be the new
Account Value of the Annuity as of the date of due proof of death and any
required proof of a spousal relationship. As of the date the assumption is
effective, the surviving spouse will have all the rights and benefits that would
be available under the Annuity to a new purchaser of the same attained age. For
purposes of determining any future Death Benefit for the beneficiary of the
surviving spouse, the new Account Value will be considered as the initial
Purchase Payment. However, any additional Purchase Payments applied after the
date the assumption is effective will be subject to all provisions of the
Annuity.
SPOUSAL CONTINGENT ANNUITANT
If the Annuity is owned by an entity and the surviving spouse is named as a
Contingent Annuitant, upon the death of the Annuitant, the surviving spouse that
was named as the Contingent Annuitant will become the Annuitant. NO DEATH
BENEFIT IS PAYABLE UPON THE DEATH OF THE ANNUITANT. However, the Account Value
of the Annuity as of the date of due proof of death of the Annuitant (and any
required proof of the spousal relationship) will reflect the amount that would
have been payable had a Death Benefit been paid.
MAY I RETURN THE ANNUITY IF I CHANGE MY MIND?
If after purchasing your Annuity you change your mind and decide that you do not
want it, you may return it to us within a certain period of time known as a
right to cancel period. This is often referred to as a "free-look." Depending on
the state in which you purchased your Annuity, and, in some states, if you
purchased the Annuity as a replacement for a prior contract, the right to cancel
period may be ten (10) days, twenty-one (21) days or longer, measured from the
time that you received your Annuity. If you return your Annuity, during the
applicable period, we will refund your current Account Value plus any tax charge
deducted, and depending on your state's requirements, any applicable insurance
charges deducted. The amount may be higher or lower than the Purchase Payment(s)
applied during the right to cancel period. Where required by law, we will return
your Purchase Payment(s), or the greater of your current Account Value and the
amount of your Purchase Payment(s) applied during the right to cancel period,
whichever is greater.
MAY I MAKE ADDITIONAL PURCHASE PAYMENTS?
The minimum amount that we accept as an additional Purchase Payment is $100
unless you participate in American Skandia's Systematic Investment Plan or a
periodic Purchase Payment program. Unless you participate in an asset allocation
program, or unless you have provided us with other specific allocation
instructions for one, more than one, or all subsequent Purchase Payments, we
will allocate any additional Purchase Payments you make according to your
initial Purchase Payment allocation instructions. If you so instruct us, we will
allocate subsequent Purchase Payments according to any new allocation
instructions. Purchase Payments made while you participate in an asset
allocation program will be allocated in accordance with such program. Additional
Purchase Payments may be paid at any time before the Annuity Date.
MAY I MAKE SCHEDULED PAYMENTS DIRECTLY FROM MY BANK ACCOUNT?
You can make additional Purchase Payments to your Annuity by authorizing us to
deduct money directly from your bank account
34
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Managing Your Annuity
and applying it to your Annuity. This type of program is often called "bank
drafting". We call our bank drafting program "American Skandia's Systematic
Investment Plan." Purchase Payments made through bank drafting may only be
allocated to the variable investment options when applied. Bank drafting allows
you to invest in your Annuity with a lower initial Purchase Payment, as long as
you authorize payments that will equal at least $5,000 during the first 12
months of your Annuity. We may suspend or cancel bank drafting privileges if
sufficient funds are not available from the applicable financial institution on
any date that a transaction is scheduled to occur.
MAY I MAKE PURCHASE PAYMENTS THROUGH A SALARY REDUCTION PROGRAM?
These types of programs are only available with certain types of qualified
investments. If your employer sponsors such a program, we may agree to accept
periodic Purchase Payments through a salary reduction program as long as the
allocations are made only to variable investment options and the periodic
Purchase Payments received in the first year total at least $5,000.
35
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Managing Your Account Value
HOW AND WHEN ARE PURCHASE PAYMENTS INVESTED?
(See "Valuing Your Investment" for a description of our procedure for pricing
initial and subsequent Purchase Payments.)
INITIAL PURCHASE PAYMENT: Once we accept your application, we invest your
net Purchase Payment in the Annuity. The net Purchase Payment is your initial
Purchase Payment minus any tax charges that may apply. On your application we
ask you to provide us with instructions for allocating your Account Value. You
can allocate Account Value to one or more variable investment options or Fixed
Allocations.
SUBSEQUENT PURCHASE PAYMENTS: Unless you participate in an asset
allocation program, or unless you have provided us with other specific
allocation instructions for one, more than one, or all subsequent purchase
payments, we will allocate any additional Purchase Payments you make according
to your initial purchase payment allocation instructions. If you so instruct us,
we will allocate subsequent purchase payments according to any new allocation
instructions. Unless you tell us otherwise, purchase payments made while you
participate in an asset allocation program will be allocated in accordance with
such program.
ARE THERE RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN INVESTMENT OPTIONS?
During the accumulation period you may transfer Account Value between investment
options. Transfers are not subject to taxation on any gain. We may require a
minimum of $500 in each Sub-account you allocate Account Value to at the time of
any allocation or transfer. If you request a transfer and, as a result of the
transfer, there would be less than $500 in the Sub-account, we may transfer the
remaining Account Value in the Sub-account pro rata to the other investment
options to which you transferred.
We may impose specific restrictions on financial transactions (including
transfer requests) for certain Portfolios based on the Portfolio's investment
and/or transfer restrictions. We may do so to conform to any present or future
restriction that is imposed by any portfolio available under this Annuity.
Currently, any purchase, redemption or transfer involving the Rydex or ProFunds
VP Sub-accounts must be received by us no later than one hour prior to any
announced closing of the applicable securities exchange (generally, 3:00 p.m.
Eastern time) to be processed on the current Valuation Day. The "cut-off" time
for such financial transactions involving a Rydex or ProFunds VP Sub-account
will be extended to 1/2 hour prior to any announced closing (generally, 3:30
p.m. Eastern time) for transactions submitted electronically through American
Skandia's Internet website (www.americanskandia.prudential.com).
Currently, we charge $10.00 for each transfer after the twentieth (20th)
in each Annuity Year. Transfers made as part of a dollar cost averaging,
automatic rebalancing or asset allocation program do not count toward the twenty
free transfer limit. Renewals or transfers of Account Value from a Fixed
Allocation at the end of its Guarantee Period are not subject to the transfer
charge. We may reduce the number of free transfers allowable each Annuity Year
(subject to a minimum of eight) without charging a Transfer Fee unless you make
use of electronic means to transmit your transfer requests. We may eliminate the
Transfer Fee for transfer requests transmitted electronically or through other
means that reduce our processing costs. If enrolled in any program that does not
permit transfer requests to be transmitted electronically, the Transfer Fee will
not be waived.
Once you have made 20 transfers among the Sub-accounts during an Annuity
Year, we will accept any additional transfer request during that year only if
the request is submitted to us in writing with an original signature and
otherwise is in good order. For purposes of this 20 transfer limit, we (i) do
not view a facsimile transmission as a "writing", (ii) will treat multiple
transfer requests submitted on the same business day as a single transfer, and
(iii) do not count any transfer that solely involves Sub-accounts corresponding
to any ProFund Portfolio and/or Rydex Portfolio and/or the AST Money Market
Portfolio, or any transfer that involves one of our systematic programs, such as
asset allocation and automated withdrawals.
Frequent transfers among Sub-accounts in response to short-term
fluctuations in markets, sometimes called "market timing," can make it very
difficult for a Portfolio manager to manage a Portfolio's investments. Frequent
transfers may cause the Portfolio to hold more cash than otherwise necessary,
disrupt management strategies, increase transaction costs, or affect
performance. The Annuity offers Sub-accounts designed for Owners who wish to
engage in frequent transfers (i.e., one or more of the Sub-accounts
corresponding to the ProFund Portfolios, the Rydex Portfolios and the AST Money
Market Portfolio), and we encourage Owners seeking frequent transfers to utilize
those Sub-accounts.
In light of the risks posed to Owners and other investors by frequent
transfers, we reserve the right to limit the number of transfers in any Annuity
Year for all existing or new Owners and to take the other actions discussed
below. We also reserve the right to limit the number of transfers in any Annuity
Year or to
36
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
refuse any transfer request for an Owner or certain Owners if: (a) we believe
that excessive transfer activity (as we define it) or a specific transfer
request or group of transfer requests may have a detrimental effect on Unit
Values or the share prices of the Portfolios; or (b) we are informed by a
Portfolio (e.g., by the Portfolio's portfolio manager) that the purchase or
redemption of shares in the Portfolio must be restricted because the Portfolio
believes the transfer activity to which such purchase and redemption relates
would have a detrimental effect on the share prices of the affected Portfolio.
Without limiting the above, the most likely scenario where either of the above
could occur would be if the aggregate amount of a trade or trades represented a
relatively large proportion of the total assets of a particular Portfolio. In
furtherance of our general authority to restrict transfers as described above,
and without limiting other actions we may take in the future, we have adopted
the following specific restrictions:
- - With respect to each Sub-account (other than the AST Money Market
Sub-account, or a Sub-account corresponding to a ProFund Portfolio or a
Rydex Portfolio), we track amounts exceeding a certain dollar threshold
that were transferred into the Sub-account. If you transfer such amount
into a particular Sub-account, and within 30 calendar days thereafter
transfer (the "Transfer Out") all or a portion of that amount into another
Sub-account, then upon the Transfer Out, the former Sub-account becomes
restricted (the "Restricted Sub-account"). Specifically, we will not
permit subsequent transfers into the Restricted Sub-account for 90
calendar days after the Transfer Out if the Restricted Sub-account invests
in a non-international Portfolio, or 180 calendar days after the Transfer
Out if the Restricted Sub-account invests in an international Portfolio.
For purposes of this rule, we (i) do not count transfers made in
connection with one of our systematic programs, such as asset allocation
and automated withdrawals; (ii) do not count any transfer that solely
involves Sub-accounts corresponding to any ProFund Portfolio and/or Rydex
Portfolio and/or the AST Money Market Portfolio; and (iii) do not
categorize as a transfer the first transfer that you make after the Issue
Date, if you make that transfer within 30 calendar days after the Issue
Date. Even if an amount becomes restricted under the foregoing rules, you
are still free to redeem the amount from your Annuity at any time.
- - We reserve the right to effect exchanges on a delayed basis for all
contracts. That is, we may price an exchange involving the Sub-accounts on
the Valuation Day subsequent to the Valuation Day on which the exchange
request was received. Before implementing such a practice, we would issue
a separate written notice to Owners that explains the practice in detail.
- - If we deny one or more transfer requests under the foregoing rules, we
will inform you or your investment professional promptly of the
circumstances concerning the denial.
- - Contract owners in New York who purchased their contracts prior to March
15, 2004 are not subject to the specific restrictions outlined in bulleted
paragraphs immediately above. In addition, there are contract owners of
different variable annuity contracts that are funded through the same
Separate Account that are not subject to the above-referenced transfer
restrictions and, therefore, might make more numerous and frequent
transfers than contract owners who are subject to such limitations.
Finally, there are contract owners of other variable annuity contracts or
variable life contracts that are issued by American Skandia as well as
other insurance companies that have the same underlying mutual fund
portfolios available to them. Since some contract owners are not subject
to the same transfer restrictions, unfavorable consequences associated
with such frequent trading within the underlying mutual fund (e.g.,
greater portfolio turnover, higher transaction costs, or performance or
tax issues) may affect all contract owners. Similarly, while contracts
managed by an investment professional or third party investment advisor
are subject to the restrictions on transfers between investment options
that are discussed above, if the advisor manages a number of contracts in
the same fashion unfavorable consequences may be associated with
management activity since it may involve the movement of a substantial
portion of an underlying mutual fund's assets which may affect all
contract owners invested in the affected options. Apart from
jurisdiction-specific and contract differences in transfer restrictions,
we will apply these rules uniformly (including contracts managed by an
investment professional or third party investment advisor), and will not
waive a transfer restriction for any contract owner.
ALTHOUGH OUR TRANSFER RESTRICTIONS ARE DESIGNED TO PREVENT EXCESSIVE
TRANSFERS, THEY ARE NOT CAPABLE OF PREVENTING EVERY POTENTIAL OCCURRENCE OF
EXCESSIVE TRANSFER ACTIVITY.
37
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Managing Your Account Value continued
DO YOU OFFER DOLLAR COST AVERAGING?
Yes. We offer Dollar Cost Averaging during the accumulation period. Dollar Cost
Averaging allows you to systematically transfer an amount periodically from one
investment option to one or more other investment options. You can choose to
transfer earnings only, principal plus earnings or a flat dollar amount. You may
elect a Dollar Cost Averaging program that transfers amounts monthly, quarterly,
semi-annually, or annually from variable investment options, or a program that
transfers amounts monthly from Fixed Allocations. By investing amounts on a
regular basis instead of investing the total amount at one time, Dollar Cost
Averaging may decrease the effect of market fluctuation on the investment of
your purchase payment. This may result in a lower average cost of units over
time. However, there is no guarantee that Dollar Cost Averaging will result in a
profit or protect against a loss in a declining market. There is no minimum
Account Value required to enroll in a Dollar Cost Averaging program and we do
not deduct a charge for participating in a Dollar Cost Averaging Program.
You can Dollar Cost Average from variable investment options or Fixed
Allocations. Dollar Cost Averaging from Fixed Allocations is subject to a number
of rules that include, but are not limited to the following:
- - You may only use Fixed Allocations with Guarantee Periods of 1, 2 or 3
years.
- - You may only Dollar Cost Average earnings or principal plus earnings. If
transferring principal plus earnings, the program must be designed to last
the entire Guarantee Period for the Fixed Allocation.
- - Dollar Cost Averaging transfers from Fixed Allocations are not subject to
a Market Value Adjustment.
NOTE: When a Dollar Cost Averaging program is established from a Fixed
Allocation, the fixed rate of interest we credit to your Account Value is
applied to a declining balance due to the transfers of Account Value to the
Sub-accounts during the Guarantee Period. This will reduce the effective rate of
return on the Fixed Allocation over the Guarantee Period.
Dollar Cost Averaging program is not available if you elect the Guaranteed
Return Option Plus(SM), the Guaranteed Return Option or the automatic
rebalancing programs when it involves transfers out of the Fixed Allocations and
is also not available when you have elected an asset allocation program.
DO YOU OFFER ANY AUTOMATIC REBALANCING PROGRAMS?
Yes. During the accumulation period, we offer automatic rebalancing among the
variable investment options you choose. You can choose to have your Account
Value rebalanced monthly, quarterly, semi-annually, or annually. On the
appropriate date, the variable investment options you chose are rebalanced to
the allocation percentages you requested. With automatic rebalancing, we
transfer the appropriate amount from the "overweighted" Sub-accounts to the
"underweighted" Sub-accounts to return your allocations to the percentages you
request. For example, over time the performance of the variable investment
options will differ, causing your percentage allocations to shift. Any transfer
to or from any variable investment option that is not part of your automatic
rebalancing program, will be made, however that variable investment option will
not become part of your rebalancing program unless we receive instructions from
you indicating that you would like such option to become part of the program.
There is no minimum Account Value required to enroll in automatic
rebalancing. All rebalancing transfers as part of an automatic rebalancing
program are not included when counting the number of transfers each year toward
the maximum number of free transfers. We do not deduct a charge for
participating in an automatic rebalancing program. Participation in the
Automatic Rebalancing program may be restricted if you are enrolled in certain
other optional programs.
ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?
Yes. Certain "static asset allocation programs" are available for use with the
Annuity. These programs are considered static because once you have selected a
model portfolio, the Sub-accounts and the percentage of contract value allocated
to each Sub-account cannot be changed without your consent. The programs are
available at no additional charge. Under these programs, the Sub-account for
each asset class in each model portfolio is designated for you. Under the
programs, the values in the Sub-accounts will be rebalanced periodically back to
the indicated percentages for the applicable asset class within the model
portfolio that you have selected. For more information on the asset allocation
programs see the Appendix entitled "Additional Information on the Asset
Allocation Programs."
38
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Asset allocation is a sophisticated method of diversifica- tion, which
allocates assets among asset classes in order to manage investment risk and
enhance returns over the long term. However, asset allocation does not guarantee
a profit or protect against a loss. No personalized investment advice is
provided in connection with the asset allocation programs and you should not
rely on these programs as providing individualized investment recommendations to
you. The asset allocation programs do not guarantee better investment results.
We reserve the right to terminate or change the asset allocation programs at any
time. You should consult with your Investment Professional before electing any
asset allocation program.
DO YOU OFFER PROGRAMS DESIGNED TO GUARANTEE A "RETURN OF PREMIUM" AT A FUTURE
DATE?
Yes. We offer two different programs for investors who wish to invest in the
variable investment options but also wish to protect their principal, as of a
specific date in the future. They are the Balanced Investment Program and the
Guaranteed Return Option Plus. (The Guaranteed Return Option Plus (GRO Plus(SM))
is not available in all states. In some states where GRO Plus is not available
we offer the Guaranteed Return Option (GRO).) Both the Balanced Investment
Program and GRO Plus allow you to allocate a portion of your Account Value to
the available variable investment options while ensuring that your Account Value
will at least equal your contributions adjusted for withdrawals and transfers on
a specified date. Under GRO Plus, Account Value is allocated to and maintained
in Fixed Allocations to the extent we, in our sole discretion, deem it is
necessary to support our guarantee under the program. This differs from the
Balanced Investment Program where a set amount is allocated to a Fixed
Allocation regardless of the performance of the underlying Sub-accounts or the
interest rate environment after the amount is allocated to a Fixed Allocation.
Generally, more of your Account Value will be allocated to the variable
investment options under the GRO Plus program than under the Balanced Investment
Program (although in periods of poor market performance, low interest rates
and/or as the option progresses to its maturity date, this may not be the case).
You may not want to use either of these programs if you expect to begin taking
annuity payments before the program would be completed. In addition, as with
most return of premium programs, amounts that are available to allocate to the
variable investment options may be substantially less than they would be if you
did not elect a return of premium program. This means that, if investment
experience in the variable investment options were positive, your Account Value
would grow at a slower rate than if you did not elect a return of premium
program and allocated all of your Account Value to the variable investment
options.
BALANCED INVESTMENT PROGRAM
We offer a balanced investment program where a portion of your Account Value is
allocated to a Fixed Allocation and the remaining Account Value is allocated to
the variable investment options that you select. When you enroll in the Balanced
Investment Program, you choose the duration that you wish the program to last.
This determines the duration of the Guarantee Period for the Fixed Allocation.
Based on the fixed rate for the Guarantee Period chosen, we calculate the
portion of your Account Value that must be allocated to the Fixed Allocation to
grow to a specific "principal amount" (such as your initial Purchase Payment).
We determine the amount based on the rates then in effect for the Guarantee
Period you choose. If you continue the program until the end of the Guarantee
Period and make no withdrawals or transfers, at the end of the Guarantee Period,
the Fixed Allocation will have grown to equal the "principal amount".
Withdrawals or transfers from the Fixed Allocation before the end of the
Guarantee Period will terminate the program and may be subject to a Market Value
Adjustment. You can transfer the Account Value that is not allocated to the
Fixed Allocation between any of the Sub-accounts available under the Annuity.
Account Value you allocate to the variable investment options is subject to
market fluctuations and may increase or decrease in value. We do not deduct a
charge for participating in the Balanced Investment Program.
EXAMPLE
Assume you invest $100,000. You choose a 10-year program and allocate a
portion of your Account Value to a Fixed Allocation with a 10-year
Guarantee Period. The rate for the 10-year Guarantee Period is 2.50%*.
Based on the fixed interest rate for the Guarantee Period chosen, the
factor is 0.781198 for determining how much of your Account Value will be
allocated to the Fixed Allocation. That means that $78,120 will be
allocated to the Fixed Allocation and the remaining Account Value
($21,880) will be allocated to the variable investment options. Assuming
that you do not make any withdrawals or transfers from
* The rate in this example is hypothetical and may not reflect the current rate
for Guarantee Periods of this duration.
39
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Managing Your Account Value continued
the Fixed Allocation, it will grow to $100,000 at the end of the Guarantee
Period. Of course we cannot predict the value of the remaining Account
Value that was allocated to the variable investment options.
The GUARANTEED RETURN OPTION PLUS (GRO PLUS) guarantees that, after a
seven-year period following commencement of the program ("maturity date") and on
each anniversary of the maturity date thereafter, your Account Value will not be
less than the Account Value on the effective date of the program. The program
also offers you the option to elect a second, enhanced guarantee amount at a
higher Account Value subject to a separate maturity period (and its
anniversaries). The GRO Plus program may be appropriate if you wish to protect a
principal amount (called the "Protected Principal Value") against market
downturns as of a specific date in the future, but also wish to exercise control
of your available Account Value among the variable investment options to
participate in market experience. Under the GRO Plus program, you give us the
right to allocate amounts to Fixed Allocations as needed to support the
guarantees provided. The available Account Value is the amount not allocated to
the Fixed Allocations to support the guarantees provided. There is a fee
associated with this program. See "Living Benefit Programs," later in this
Prospectus, for more information about this program.
MAY I GIVE MY INVESTMENT PROFESSIONAL PERMISSION TO MANAGE MY ACCOUNT VALUE?
Yes. Your Investment Professional may direct the allocation of your Account
Value and request financial transactions between investment options while you
are living, subject to our rules and unless you tell us otherwise. IF YOUR
INVESTMENT PROFESSIONAL HAS THIS AUTHORITY, WE DEEM THAT ALL TRANSACTIONS THAT
ARE DIRECTED BY YOUR INVESTMENT PROFESSIONAL WITH RESPECT TO YOUR ANNUITY HAVE
BEEN AUTHORIZED BY YOU. You must contact us immediately if and when you revoke
such authority. We will not be responsible for acting on instructions from your
investment professional until we receive notification of the revocation of such
person's authority. We may also suspend, cancel or limit these privileges at any
time. We will notify you if we do.
MAY I AUTHORIZE MY THIRD PARTY INVESTMENT ADVISOR TO MANAGE MY ACCOUNT?
Yes. You may engage your own investment advisor to manage your account. These
investment advisors may be firms or persons who also are appointed by us, or
whose affiliated broker-dealers are appointed by us, as authorized sellers of
the Annuity. EVEN IF THIS IS THE CASE, HOWEVER, PLEASE NOTE THAT THE INVESTMENT
ADVISOR YOU ENGAGE TO PROVIDE ADVICE AND/OR MAKE TRANSFERS FOR YOU, IS NOT
ACTING ON OUR BEHALF, BUT RATHER IS ACTING ON YOUR BEHALF. We do not offer
advice about how to allocate your Account Value under any circumstance. As such,
we are not responsible for any recommendations such investment advisors make,
any investment models or asset allocation programs they choose to follow or any
specific transfers they make on your behalf.
Any fee that is charged by your investment advisor is in addition to the
fees and expenses that apply under your Annuity. If you authorize your
investment advisor to withdraw amounts from your Annuity to pay for the
investment advisor's fee, as with any other withdrawal from your Annuity, you
may incur adverse tax consequences, and/or a Market Value Adjustment.
Withdrawals to pay your investment advisor (to the extent permitted) generally
will also reduce the level of various living and death benefit guarantees
provided (e.g. the withdrawals will reduce proportionately the Annuity's
guaranteed minimum death benefit. WE ARE NOT A PARTY TO THE AGREEMENT YOU HAVE
WITH YOUR INVESTMENT ADVISOR AND DO NOT VERIFY THAT AMOUNTS WITHDRAWN FROM YOUR
ANNUITY, INCLUDING AMOUNTS WITHDRAWN TO PAY FOR THE INVESTMENT ADVISOR'S FEE,
ARE WITHIN THE TERMS OF YOUR AGREEMENT WITH YOUR INVESTMENT ADVISOR. You will,
however, receive confirmations of transactions that affect your Annuity. If your
investment advisor has also acted as your investment professional with respect
to the sale of your Annuity, he or she may be receiving compensation for
services provided both as an investment professional and investment advisor.
Alternatively, the investment advisor may compensate the investment professional
from whom you purchased your annuity for the referral that led you to enter into
your investment advisory relationship with the investment advisor. If you are
interested in the details about the compensation that your investment advisor
and/or your investment professional receive in connection with your Annuity, you
should ask them for more details.
We or an affiliate of ours may provide administrative support to licensed,
registered investment professionals or investment advisors who you authorize to
make financial transactions on your behalf. We may require investment
professionals or investment advisors, who are authorized by multiple contract
owners to make financial transactions, to enter into an admin-
40
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
istrative agreement with American Skandia as a condition of our accepting
transactions on your behalf. The administrative agreement may impose limitations
on the investment professional's or investment advisor's ability to request
financial transactions on your behalf. These limitations are intended to
minimize the detrimental impact of an investment professional who is in a
position to transfer large amounts of money for multiple clients in a particular
Portfolio or type of portfolio or to comply with specific restrictions or
limitations imposed by a Portfolio(s) on American Skandia. Contracts managed by
your investment professional also are subject to the restrictions on transfer
between investment options that are discussed in the section entitled "ARE THERE
RESTRICTIONS OR CHARGES ON TRANSFERS BETWEEN INVESTMENT OPTIONS?." Since
transfer activity under contracts managed by an investment professional or third
party investment adviser may result in unfavorable consequences to all contract
owners invested in the affected options we reserve the right to limit the
investment options available to a particular Owner whose contract is managed by
the advisor or impose other transfer restrictions we deem necessary. The
administrative agreement may limit the available investment options, require
advance notice of large transactions, or impose other trading limitations on
your investment professional. Your investment professional will be informed of
all such restrictions on an ongoing basis. We may also require that your
investment professional transmit all financial transactions using the electronic
trading functionality available through our Internet website
(www.americanskandia.prudential.com). LIMITATIONS THAT WE MAY IMPOSE ON YOUR
INVESTMENT PROFESSIONAL OR INVESTMENT ADVISOR UNDER THE TERMS OF THE
ADMINISTRATIVE AGREEMENT DO NOT APPLY TO FINANCIAL TRANSACTIONS REQUESTED BY AN
OWNER ON THEIR OWN BEHALF, EXCEPT AS OTHERWISE DESCRIBED IN THIS PROSPECTUS.
HOW DO THE FIXED ALLOCATIONS WORK?
We credit the fixed interest rate to the Fixed Allocation throughout a set
period of time called a "Guarantee Period". Fixed Allocations currently are
offered with Guarantee Periods from 1 to 10 years. We may make Fixed Allocations
of different durations available in the future, including Fixed Allocations
offered exclusively for use with certain optional investment programs. Fixed
Allocations may not be available in all states and may not always be available
for all Guarantee Periods depending on market factors and other considerations.
The interest rate credited to a Fixed Allocation is the rate in effect
when the Guarantee Period begins and does not change during the Guarantee
Period. The rates are an effective annual rate of interest. We determine the
interest rates for the various Guarantee Periods. At the time that we confirm
your Fixed Allocation, we will advise you of the interest rate in effect and the
date your Fixed Allocation matures. We may change the rates we credit new Fixed
Allocations at any time. Any change in interest rate does not affect Fixed
Allocations that were in effect before the date of the change. To inquire as to
the current rates for Fixed Allocations, please call 1-800-752-6342.
A Guarantee Period for a Fixed Allocation begins:
- - when all or part of a net Purchase Payment is allocated to that particular
Guarantee Period;
- - upon transfer of any of your Account Value to a Fixed Allocation for that
particular Guarantee Period; or
- - when you "renew" a Fixed Allocation by electing a new Guarantee Period.
To the extent permitted by law, we may establish different interest rates
for Fixed Allocations offered to a class of Owners who choose to participate in
various optional investment programs we make available. This may include, but is
not limited to, Owners who elect to use Fixed Allocations under a dollar cost
averaging program (see "Do You Offer Dollar Cost Averaging?") or a balanced
investment program (see "Do you offer programs designed to guarantee a "Return
of Premium" at a future date?"). The interest rate credited to Fixed Allocations
offered to this class of purchasers may be different than those offered to other
purchasers who choose the same Guarantee Period but who do not participate in an
optional investment program. Any such program is at our sole discretion.
AMERICAN SKANDIA MAY OFFER FIXED ALLOCATIONS WITH GUARANTEE PERIODS OF 3 MONTHS
OR 6 MONTHS EXCLUSIVELY FOR USE AS A SHORT-TERM FIXED ALLOCATION ("SHORT-TERM
FIXED ALLOCATIONS"). SHORT-TERM FIXED ALLOCATIONS MAY ONLY BE ESTABLISHED WITH
YOUR INITIAL PURCHASE PAYMENT OR ADDITIONAL PURCHASE PAYMENTS. YOU MAY NOT
TRANSFER EXISTING ACCOUNT VALUE TO A SHORT-TERM FIXED ALLOCATION. WE RESERVE THE
RIGHT TO TERMINATE OFFERING THESE SPECIAL PURPOSE FIXED ALLOCATIONS AT ANY TIME.
On the Maturity Date of the Short-term Fixed Allocation, the Account Value
will be transferred to the Sub-account(s) you choose at the inception of the
program. If no instructions are
41
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Managing Your Account Value continued
provided, such Account Value will be transferred to the AST Money Market
Sub-account. Short-term Fixed Allocations may not be renewed on the Maturity
Date. If you surrender the Annuity or transfer any Account Value from the
Short-term Fixed Allocation to any other investment option before the end of the
Guarantee Period, a Market Value Adjustment will apply.
HOW DO YOU DETERMINE RATES FOR FIXED ALLOCATIONS?
We do not have a specific formula for determining the fixed interest rates for
Fixed Allocations. Generally the interest rates we offer for Fixed Allocations
will reflect the investment returns available on the types of investments we
make to support our fixed rate guarantees. These investment types may include
cash, debt securities guaranteed by the United States government and its
agencies and instrumentalities, money market instruments, corporate debt
obligations of different durations, private placements, asset-backed obligations
and municipal bonds. In determining rates we also consider factors such as the
length of the Guarantee Period for the Fixed Allocation, regulatory and tax
requirements, liquidity of the markets for the type of investments we make,
commissions, administrative and investment expenses, our insurance risks in
relation to the Fixed Allocations, general economic trends and competition. Some
of these considerations are similar to those we consider in determining the
Insurance Charge that we deduct from Account Value allocated to the
Sub-accounts.
We will credit interest on a new Fixed Allocation in an existing Annuity
at a rate not less than the rate we are then crediting to Fixed Allocations for
the same Guarantee Period selected by new Annuity purchasers in the same class.
The interest rate we credit for a Fixed Allocation is subject to a
minimum. Please refer to the Statement of Additional Information. In certain
states the interest rate may be subject to a minimum under state law or
regulation.
HOW DOES THE MARKET VALUE ADJUSTMENT WORK?
If you transfer or withdraw Account Value from a Fixed Allocation before the end
of its Guarantee Period, we will adjust the value of your investment based on a
formula, called a "Market Value Adjustment" or "MVA". The Market Value
Adjustment formula compares the interest rates credited for Fixed Allocations at
the time you invested, to interest rates being credited when you make a transfer
or withdrawal. The amount of any Market Value Adjustment can be either positive
or negative, depending on the rates that are currently being credited on Fixed
Allocations. In certain states the amount of any Market Value Adjustment may be
limited under state law or regulation. If your Annuity is governed by the laws
of that state, any Market Value Adjustment that applies will be subject to our
rules for complying with such law or regulation.
MVA FORMULA
The MVA formula is applied separately to each Fixed Allocation to determine the
Account Value of the Fixed Allocation on a particular date. The formula is as
follows:
[(1+I) / (1+J+0.0010)](N/12)
where:
I is the fixed interest rate we guaranteed to credit to the Fixed
Allocation as of its starting date;
J is the fixed interest rate for your class of annuities at the time of
the withdrawal for a new Fixed Allocation with a Guarantee Period equal to
the remaining number of years in your original Guarantee Period;
N is the number of months remaining in the original Guarantee Period.
If you surrender your Annuity under the right to cancel provision, the MVA
formula is
[(1 + I)/(1 + J)](N/12)
If the transfer or withdrawal does not occur on the yearly or monthly
anniversary of the beginning of the Fixed Allocation, the numbers used in
'J' and 'N' will be rounded to the next highest integer.
MVA EXAMPLES
The following hypothetical examples show the effect of the MVA in determining
Account Value. Assume the following:
- - You allocate $50,000 into a Fixed Allocation with a Guarantee Period of 5
years.
- - The interest rate for your Fixed Allocation is 5.0% (I = 5.0%).
- - You make no withdrawals or transfers until you decide to withdraw the
entire Fixed Allocation after exactly three (3) years, at which point 24
months remain before the Maturity Date (N = 24).
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
EXAMPLE OF POSITIVE MVA
Assume that at the time you request the withdrawal, the fixed interest rate for
a new Fixed Allocation with a Guarantee Period of 24 months is 3.5% (J = 3.5%).
Based on these assumptions, the MVA would be calculated as follows:
MVA Factor = [(1+I)/(I+J+0.0010)](N/12) =
[1.05/1.036](2) = 1.027210
Interim Value = $57,881.25
Account Value after MVA = Interim Value X MVA
Factor = $59,456.20.
EXAMPLE OF NEGATIVE MVA
Assume that at the time you request the withdrawal, the fixed interest rate for
a new Fixed Allocation with a Guarantee Period of 24 months is 6.0% (J = 6.0%).
Based on these assumptions, the MVA would be calculated as follows:
MVA Factor = [(1+I)/(1+J+0.0010)](N/12) =
[1.05/1.061)](2) = 0.979372
Interim Value = $57,881.25
Account Value after MVA = Interim Value X MVA
Factor = $56,687.28.
WHAT HAPPENS WHEN MY GUARANTEE PERIOD MATURES?
The "Maturity Date" for a Fixed Allocation is the last day of the Guarantee
Period. Before the Maturity Date, you may choose to renew the Fixed Allocation
for a new Guarantee Period of the same or different length or you may transfer
all or part of that Fixed Allocation's Account Value to another Fixed Allocation
or to one or more Sub-accounts. We will not charge a MVA if you choose to renew
a Fixed Allocation on its Maturity Date or transfer the Account Value to one or
more variable investment options. We will notify you before the end of the
Guarantee Period about the fixed interest rates that we are currently crediting
to all Fixed Allocations that are being offered. The rates being credited to
Fixed Allocations may change before the Maturity Date. We will not charge a MVA
if you choose to renew a Fixed Allocation on its Maturity Date or transfer the
Account Value to one or more variable investment options.
IF YOU DO NOT SPECIFY HOW YOU WANT A FIXED ALLOCATION TO BE ALLOCATED ON
ITS MATURITY DATE, IT WILL BE RENEWED FOR A FIXED ALLOCATION OF THE SAME
DURATION IF THEN AVAILABLE. IF A FIXED ALLOCATION OF THE SAME DURATION IS NOT
AVAILABLE, IT WILL BE RENEWED TO THE NEXT SHORTEST GUARANTEE PERIOD THEN
CURRENTLY AVAILABLE FOR NEW ALLOCATIONS AND RENEWALS.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Access To Account Value
WHAT TYPES OF DISTRIBUTIONS ARE AVAILABLE TO ME?
During the accumulation period you can access your Account Value through partial
withdrawals, Systematic Withdrawals, and where required for tax purposes,
Minimum Distributions. You can also surrender your Annuity at any time. There is
no Contingent Deferred Sales Charge applied upon surrender or partial
withdrawal. However, if you surrender your Annuity, we may deduct the Annual
Maintenance Fee, any Tax Charge that applies and the charge for any optional
benefits. We may also apply a Market Value Adjustment to any Fixed Allocations
being withdrawn or surrendered. Unless you notify us differently, withdrawals
are taken pro-rata based on the Account Value in the investment options at the
time we receive your withdrawal request. Each of these types of distributions is
described more fully below.
ARE THERE TAX IMPLICATIONS FOR DISTRIBUTIONS?
(For more information, see "Tax Considerations".)
DURING THE ACCUMULATION PERIOD
A distribution during the accumulation period is deemed to come first from any
"gain" in your Annuity and second as a return of your "tax basis", if any.
Distributions from your Annuity are generally subject to ordinary income
taxation on the amount of any investment gain unless the distribution qualifies
as a non-taxable exchange or transfer. If you take a distribution prior to the
taxpayer's age 591/2, you may be subject to a 10% penalty in addition to
ordinary income taxes on any gain. You may wish to consult a professional tax
advisor for advice before requesting a distribution.
DURING THE ANNUITIZATION PERIOD
During the annuitization period, a portion of each annuity payment is taxed as
ordinary income at the tax rate you are subject to at the time of the payment.
The Code and regulations have "exclusionary rules" that we use to determine what
portion of each annuity payment should be treated as a return of any tax basis
you have in the Annuity. Once the tax basis in the Annuity has been distributed,
the remaining annuity payments are taxable as ordinary income. The tax basis in
the Annuity may be based on the tax-basis from a prior contract in the case of a
1035 exchange or other qualifying transfer.
SPECIAL RULES FOR DISTRIBUTIONS TO PAY ADVISORY FEES
We treat partial withdrawals to pay advisory fees as taxable distributions
unless:
- - your Annuity is being used in conjunction with a "qualified" retirement
plan (plans meeting the requirements of Sections 401, 403 or 408 of the
Code); and
- - in relation to Section 403 or 408 plans, you and your Advisor provide
acceptable proof to us, limiting the source of the Advisor's compensation
to the assets of an applicable qualified retirement plan, and making
certain other representations.
CAN I WITHDRAW A PORTION OF MY ANNUITY?
Yes, you can make a withdrawal during the accumulation period. We call this a
"partial withdrawal." The maximum amount that you may withdraw will equal your
Surrender Value as of the date we process the withdrawal request. After any
partial withdrawal, your Annuity must have a Surrender Value of at least $1,000,
or we may treat the partial withdrawal request as a request to fully surrender
your Annuity. The minimum partial withdrawal you may request is $100. We may
apply a Market Value Adjustment to any Fixed Allocations.
Partial withdrawals may also be available following annuitization but only
if you choose certain annuity payment options.
To request the forms necessary to make a withdrawal from your Annuity,
call 1-800-752-6342 or visit our Internet Website at
www.americanskandia.prudential.com.
CAN I MAKE PERIODIC WITHDRAWALS FROM THE ANNUITY DURING THE ACCUMULATION PERIOD?
Yes. We call these "Systematic Withdrawals." You can receive Systematic
Withdrawals of earnings only, principal plus earnings or a flat dollar amount.
Systematic Withdrawals can be made from Account Value allocated to the
variable investment options or Fixed Allocations. Systematic Withdrawals are
available on a monthly, quarterly, semi-annual or annual basis. The Account
Value of your Annuity must be at least $20,000 before we will allow you to begin
a program of Systematic Withdrawals.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
The minimum amount for each Systematic Withdrawal is $100. If any
scheduled Systematic Withdrawal is for less than $100 (which may occur under a
program that provides payment of an amount equal to the earnings in the annuity
for the period requested), we may postpone the withdrawal and add the expected
amount to the amount that is to be withdrawn on the next scheduled Systematic
Withdrawal.
DO YOU OFFER A PROGRAM FOR WITHDRAWALS UNDER SECTION 72(t) OF THE INTERNAL
REVENUE CODE?
Yes. If your Annuity is used as a funding vehicle for certain retirement plans
that receive special tax treatment under Sections 401, 403(b) or 408 of the
Code, Section 72(t) of the Code may provide an exception to the 10% penalty tax
on distributions made prior to age 591/2 if you elect to receive distributions
as a series of "substantially equal periodic payments". We may apply a Market
Value Adjustment to any Fixed Allocations. To request a program that complies
with Section 72(t), you must provide us with certain required information in
writing on a form acceptable to us. We may require advance notice to allow us to
calculate the amount of 72(t) withdrawals. The Surrender Value of your Annuity
must be at least $20,000 before we will allow you to begin a program for
withdrawals under Section 72(t). The minimum amount for any such withdrawal is
$100.
You may also annuitize your contract and begin receiving payments for the
remainder of your life (or life expectancy) as a means of receiving income
payments before age 591/2 that are not subject to the 10% penalty.
WHAT ARE MINIMUM DISTRIBUTIONS AND WHEN WOULD I NEED TO MAKE THEM?
(See "Tax Considerations" for a further discussion of Minimum Distributions.)
Minimum Distributions are a type of Systematic Withdrawal we allow to meet
distribution requirements under Sections 401, 403(b) or 408 of the Code. Under
the Code, you may be required to begin receiving periodic amounts from your
Annuity. In such case, we will allow you to make Systematic Withdrawals in
amounts that satisfy the minimum distribution rules under the Code.
The amount of the required Minimum Distribution for your particular
situation may depend on other annuities, savings or investments. We will only
calculate the amount of your required Minimum Distribution based on the value of
your Annuity. We require three (3) days advance written notice to calculate and
process the amount of your payments. You may elect to have Minimum Distributions
paid out monthly, quarterly, semi-annually or annually. The $100 minimum amount
that applies to Systematic Withdrawals applies to monthly Minimum Distributions
but does not apply to Minimum Distributions taken out on a quarterly,
semi-annual or annual basis.
You may also annuitize your contract and begin receiving payments for the
remainder of your life (or life expectancy) as a means of receiving income
payments and satisfying the Minimum Distribution requirements under the Code.
CAN I SURRENDER MY ANNUITY FOR ITS VALUE?
Yes. During the accumulation period you can surrender your Annuity at any time.
Upon surrender, you will receive the Surrender Value. We may apply a Market
Value Adjustment to any Fixed Allocations. Upon surrender of your Annuity, you
will no longer have any rights under the Annuity.
Under certain annuity payment options, you may be allowed to surrender
your Annuity for its then current value.
To request the forms necessary to surrender your Annuity, call
1-800-752-6342 or visit our Internet Website at
www.americanskandia.prudential.com.
WHAT TYPES OF ANNUITY OPTIONS ARE AVAILABLE?
We currently make annuity options available that provide fixed annuity payments,
variable payments or adjustable payments. Fixed options provide the same amount
with each payment. Variable options generally provide a payment which may
increase or decrease depending on the investment performance of the
Sub-accounts. However, currently, we also make a variable payment option that
has a guarantee feature. Adjustable options provide a fixed payment that is
periodically adjusted based on current interest rates. WE DO NOT GUARANTEE TO
MAKE ANY ANNUITY PAYMENT OPTIONS AVAILABLE IN THE FUTURE OTHER THAN THOSE FIXED
ANNUITIZATION OPTIONS GUARANTEED IN YOUR ANNUITY. Please refer to the
"Guaranteed Minimum Income Benefit" and the "Lifetime Five Income Benefit" under
"Living Benefits" below for a description of annuity options that are available
when you elect these benefits. For additional information on annuity payment
options you may request a Statement of Additional Information.
When you purchase an Annuity, or at a later date, you may choose an
Annuity Date, an annuity option and the frequency of annuity payments. You may
change your choices before the
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Access To Account Value continued
Annuity Date under the terms of your contract. A maximum Annuity Date may be
required by law. The Annuity Date may depend on the annuity option you choose.
Certain annuity options may not be available depending on the age of the
Annuitant.
Certain of these annuity options may be available to Beneficiaries who
choose to receive the Death Benefit proceeds as a series of payments instead of
a lump sum payment.
OPTION 1
PAYMENTS FOR LIFE: Under this option, income is payable periodically until the
death of the "key life". The "key life" (as used in this section) is the person
or persons upon whose life annuity payments are based. No additional annuity
payments are made after the death of the key life. Since no minimum number of
payments is guaranteed, this option offers the largest amount of periodic
payments of the life contingent annuity options. It is possible that only one
payment will be payable if the death of the key life occurs before the date the
second payment was due, and no other payments nor death benefits would be
payable. THIS OPTION IS CURRENTLY AVAILABLE ON A FIXED OR VARIABLE BASIS. Under
this option, you cannot make a partial or full surrender of the annuity.
OPTION 2
PAYMENTS BASED ON JOINT LIVES: Under this option, income is payable periodically
during the joint lifetime of two key lives, and thereafter during the remaining
lifetime of the survivor, ceasing with the last payment prior to the survivor's
death. No minimum number of payments is guaranteed under this option. It is
possible that only one payment will be payable if the death of all the key lives
occurs before the date the second payment was due, and no other payments or
death benefits would be payable. THIS OPTION IS CURRENTLY AVAILABLE ON A FIXED
OR VARIABLE BASIS. Under this option, you cannot make a partial or full
surrender of the annuity.
OPTION 3
PAYMENTS FOR LIFE WITH A CERTAIN PERIOD: Under this option, income is payable
until the death of the key life. However, if the key life dies before the end of
the period selected (5, 10 or 15 years), the remaining payments are paid to the
Beneficiary until the end of such period. THIS OPTION IS CURRENTLY AVAILABLE ON
A FIXED OR VARIABLE BASIS. If you elect to receive payments on a variable basis
under this option, you can request partial or full surrender of the annuity and
receive its then current cash value (if any) subject to our rules.
OPTION 4
FIXED PAYMENTS FOR A CERTAIN PERIOD: Under this option, income is payable
periodically for a specified number of years. If the payee dies before the end
of the specified number of years, the remaining payments are paid to the
Beneficiary until the end of such period. Note that under this option, payments
are not based on any assumptions of life expectancy. Therefore, that portion of
the Insurance Charge assessed to cover the risk that key lives outlive our
expectations provides no benefit to an Owner selecting this option. Under this
option, you cannot make a partial or full surrender of the annuity.
OPTION 5
VARIABLE PAYMENTS FOR LIFE WITH A CASH VALUE: Under this option, benefits are
payable periodically until the death of the key life. Benefits may increase or
decrease depending on the investment performance of the Sub-accounts. This
option has a cash value that also varies with the investment performance of the
Sub-account. The cash value provides a "cushion" from volatile investment
performance so that negative investment performance does not automatically
result in a decrease in the annuity payment each month, and positive investment
performance does not automatically result in an increase in the annuity payment
each month. The cushion generally "stabilizes" monthly annuity payments. Any
cash value remaining on the death of the key life is paid to the Beneficiary in
a lump sum or as periodic payments. Under this option, you can request partial
or full surrender of the Annuity and receive its then current cash value (if
any) subject to our rules.
OPTION 6
VARIABLE PAYMENTS FOR LIFE WITH A CASH VALUE AND GUARANTEE: Under this option,
benefits are payable as described in Option 5; except that, while the key life
is alive, the annuity payment will not be less than a guaranteed amount, which
generally is equal to the first annuity payment. WE CHARGE AN ADDITIONAL AMOUNT
FOR THIS GUARANTEE. Under this option, any cash value remaining on the death of
the key life is paid to the Beneficiary in a lump sum or as periodic payments.
Under this option, you can request partial or full surrender of the annuity and
receive its then current cash value (if any) subject to our rules.
We may make additional Annuity payment options available in the future.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
HOW AND WHEN DO I CHOOSE THE ANNUITY PAYMENT OPTION?
You have a right to choose your annuity start date.
If you have not provided us with your Annuity Date or annuity payment
option in writing, then:
- - a default date for the Annuity Date will be the first day of the calendar
month following the later of the Annuitant's 85th birthday or the fifth
anniversary of our receipt of your request to purchase an Annuity; and
- - the annuity payments, where allowed by law, will be calculated on a fixed
basis under Option 3, Payments for Life with 10 years certain.
If you choose to defer the Annuity Date beyond the default date, the IRS may not
consider your Annuity to be an annuity under the tax law. If that should occur,
all gain in your Annuity at that time will become immediately taxable to you.
Further, each subsequent year's increase in Account Value would be taxable in
that year. By choosing to continue to defer after the default date, you will
assume the risk that your Annuity will not be considered an annuity for federal
income tax purposes.
HOW ARE ANNUITY PAYMENTS CALCULATED?
FIXED ANNUITY PAYMENTS (OPTIONS 1-4)
If you choose to receive fixed annuity payments, you will receive equal
fixed-dollar payments throughout the period you select. The amount of the fixed
payment will vary depending on the annuity payment option and payment frequency
you select. Generally, the first annuity payment is determined by multiplying
the Account Value, minus any state premium taxes that may apply, by the factor
determined from our table of annuity rates. The table of annuity rates differs
based on the type of annuity chosen and the frequency of payment selected. Our
rates will not be less than our guaranteed minimum rates. These guaranteed
minimum rates are derived from the 1983a Individual Annuity Mortality Table with
an assumed interest rate of 3% per annum. Where required by law or regulation,
such annuity table will have rates that do not differ according to the gender of
the key life. Otherwise, the rates will differ according to the gender of the
key life.
VARIABLE ANNUITY PAYMENTS
Generally, we offer three different types of variable annuity payment options.
The first annuity payment will be calculated based upon the assumed investment
return ("AIR"). You select the AIR before we start to make annuity payments. You
will not receive annuity payments until you choose an AIR. The remaining annuity
payments will fluctuate based on the performance of the Sub-accounts relative to
the AIR, as well as other factors described below. The greater the AIR, the
greater the first annuity payment. A higher AIR may result in smaller potential
growth in the annuity payments. A lower AIR results in a lower initial annuity
payment. Within payment options 1-3, if the Sub-accounts you choose perform
exactly the same as the AIR, then subsequent annuity payments will be the same
as the first annuity payment. If the Sub-accounts you choose perform better than
the AIR, then subsequent annuity payments will be higher than the first. If the
Sub-accounts you choose perform worse than the AIR, then subsequent annuity
payments will be lower than the first. Within payment options 5 and 6, the cash
value for the Annuitant (while alive) and a variable period of time during which
annuity payments will be made whether or not the Annuitant is still alive are
adjusted based on the performance of the Sub-accounts relative to the AIR;
however, subsequent annuity payments do not always increase or decrease based on
the performance of the Sub-accounts relative to the AIR.
- VARIABLE PAYMENTS (OPTIONS 1-3)
We calculate each annuity payment amount by multiplying the number
of units scheduled to be redeemed under a schedule of units for each
Sub-account by the Unit Value of each Sub-account on the annuity
payment date. We determine the schedule of units based on your
Account Value (minus any premium tax that applies) at the time you
elect to begin receiving annuity payments. The schedule of units
will vary based on the annuity payment option selected, the length
of any certain period (if applicable), the Annuitant's age and
gender (if annuity payments are due for the life of the Annuitant)
and the Unit Value of the Sub-accounts you initially selected on the
Issue Date. The calculation is performed for each Sub-account, and
the sum of the Sub-account calculations equals the amount of your
annuity payment. Other than to fund annuity payments, the number of
units allocated to each Sub-account will not change unless you
transfer among the Sub-accounts or make a withdrawal (if allowed).
You can select one of three AIRs for these options: 3%, 5% or 7%.
- STABILIZED VARIABLE PAYMENTS (OPTION 5)
This option provides guaranteed payments for life, a cash value for
the Annuitant (while alive) and a vari-
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Access To Account Value continued
able period of time during which annuity payments will be made
whether or not the Annuitant is still alive. We calculate the
initial annuity payment amount by multiplying the number of units
scheduled to be redeemed under a schedule of units by the Unit
Values determined on the annuitization date. The schedule of units
is established for each Sub-account you choose on the annuitization
date based on the applicable benchmark rate, meaning the AIR, and
the annuity factors. The annuity factors reflect our assumptions
regarding the costs we expect to bear in guaranteeing payments for
the lives of the Annuitant and will depend on the benchmark rate,
the annuitant's attained age and gender (where permitted). Unlike
variable payments (described above) where each payment can vary
based on Sub-account performance, this payment option cushions the
immediate impact of Sub-account performance by adjusting the length
of the time during which annuity payments will be made whether or
not the Annuitant is alive while generally maintaining a level
annuity payment amount. Sub-account performance that exceeds a
benchmark rate will generally extend this time period, while
Sub-account performance that is less than a benchmark rate will
generally shorten the period. If the period reaches zero and the
Annuitant is still alive, Annuity Payments continue, however, the
annuity payment amount will vary depending on Sub-account
performance, similar to conventional variable payments. The AIR for
this option is 4%.
- STABILIZED VARIABLE PAYMENTS WITH A GUARANTEED MINIMUM (OPTION 6)
This option provides guaranteed payments for life in the same manner
as Stabilized Variable Payments (described above). In addition to
the stabilization feature, this option also guarantees that variable
annuity payments will not be less than the initial annuity payment
amount regardless of Sub-account performance. The AIR for this
option is 3%.
The variable annuity payment options are described in greater detail in a
separate prospectus which will be provided to you at the time you elect one of
the variable annuity payment options.
ADJUSTABLE ANNUITY PAYMENTS
We may make an adjustable annuity payment option available. Adjustable annuity
payments are calculated similarly to fixed annuity payments except that on every
fifth (5th) anniversary of receiving annuity payments, the annuity payment
amount is adjusted upward or downward depending on the rate we are currently
crediting to annuity payments. The adjustment in the annuity payment amount does
not affect the duration of remaining annuity payments, only the amount of each
payment.
48
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs
DO YOU OFFER PROGRAMS DESIGNED TO PROVIDE INVESTMENT PROTECTION FOR OWNERS WHILE
THEY ARE ALIVE?
American Skandia offers different optional benefits, for an additional charge,
that can provide investment protection for Owners while they are alive.
Notwithstanding the additional protection provided under the optional Living
Benefit Programs, the additional cost has the impact of reducing net performance
of the investment options. Each optional benefit offers a distinct type of
guarantee, regardless of the performance of variable investment options, that
may be appropriate for you depending on the manner in which you intend to make
use of your annuity while you are alive. Depending on which optional benefit you
choose, you can have substantial flexibility to invest in variable investment
options while:
- - protecting a principal amount from decreases in value as of specified
future dates due to investment performance;
- - taking withdrawals with a guarantee that you will be able to withdraw not
less than a principal amount over time; or
- - guaranteeing a minimum amount of growth will be applied to your principal,
if it is to be used as the basis for lifetime income payments beginning
after a waiting period.
Below is a brief summary of the "living benefits" that American Skandia
offers. Please refer to the benefit description for a complete description of
the terms, conditions and limitations of each optional benefit. You should
consult with your investment professional to determine if any of these optional
benefits may be appropriate for you based on your financial needs. There are
many factors to consider, but we note that among them you may want to evaluate
the tax implications of these different approaches to meeting your needs, both
between these benefits and in comparison to other potential solutions to your
needs (e.g. comparing the tax implications of the withdrawal benefit and annuity
payments).
I. The GUARANTEED RETURN OPTION PLUS(SM) (GRO PLUS(SM)) guarantees that,
after a seven-year period following commencement of the program ("maturity
date") and on each anniversary of the maturity date thereafter, your
Account Value will not be less than the Account Value on the effective
date of the program. The program also offers you the option to elect a
second, enhanced guarantee amount at a higher Account Value subject to a
separate maturity period (and its anniversaries). The GRO Plus(SM) program
may be appropriate if you wish to protect a principal amount (called the
"Protected Principal Value") against market downturns as of a specific
date in the future, but also wish to exercise control of your available
Account Value among the variable investment options to participate in
market experience. Under the GRO Plus(SM) program, you give us the right
to allocate amounts to Fixed Allocations as needed to support the
guarantees provided. The available Account Value that may be allocated
among your variable investment options are those amounts not allocated to
the Fixed Allocations to support the guarantees provided.
II. The GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB) guarantees your ability
to make cumulative withdrawals over time equal to an initial principal
value (called the "Protected Value"), regardless of decreases in your
Account Value due to market losses. The GMWB program may be appropriate if
you intend to make periodic withdrawals from your Annuity and wish to
ensure that market performance will not affect your ability to receive
guaranteed minimum withdrawals. Taking income as withdrawals, rather than
annuity payments, may be less tax efficient for non-qualified uses of the
Annuity, but provides greater control over the timing and amount of
withdrawals during the accumulation period, as well as continuing the
Annuity's other benefits, such as the death benefit.
III. The GUARANTEED MINIMUM INCOME BENEFIT (GMIB) guarantees your ability,
after a minimum seven-year waiting period, to begin receiving income from
the Annuity in the form of annuity payments based on your total purchase
payments under the Annuity and an annual increase of 5% on such Purchase
Payments, adjusted for withdrawals, regardless of the impact of market
performance on your Account Value. The GMIB program may be appropriate if
you anticipate using your Annuity as a future source of periodic fixed
income payments for the remainder of your life and wish to ensure that the
basis upon which your income payments will be calculated will achieve at
least a minimum amount despite fluctuations in market performance.
49
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
IV. The LIFETIME FIVE INCOME BENEFIT guarantees your ability to withdraw
amounts equal to a percentage of a "Protected Withdrawal Value" regardless
of decreases in your Account Value due to market losses. The Lifetime Five
Benefit may be appropriate if you intend to make periodic withdrawals from
your Annuity and wish to ensure that market performance will not affect
your ability to receive guaranteed minimum withdrawals. Taking income as
withdrawals, rather than annuity payments, may be less tax efficient for
non-qualified uses of the Annuity, but provides greater control over the
timing and amount of withdrawals during the accumulation period, as well
as continuing the Annuity's other benefits, such as the death benefit.
GUARANTEED RETURN OPTION PLUS(SM) (GRO PLUS(SM))
THE GUARANTEED RETURN OPTION PLUS DESCRIBED BELOW IS ONLY BEING OFFERED IN THOSE
JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY APPROVAL, AND WILL BE OFFERED
SUBSEQUENTLY IN OTHER JURISDICTIONS WHEN WE RECEIVE REGULATORY APPROVAL IN THOSE
JURISDICTIONS. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN JURISDICTIONS
ONCE APPROVED. THE PROGRAM CAN BE ELECTED BY NEW PURCHASERS ON THE ISSUE DATE OF
THEIR ANNUITY, AND CAN BE ELECTED BY EXISTING ANNUITY OWNERS ON EITHER THE
ANNIVERSARY OF THE ISSUE DATE OF THEIR ANNUITY OR ON A DATE OTHER THAN THAT
ANNIVERSARY, AS DESCRIBED BELOW UNDER "ELECTION OF THE PROGRAM". THE GUARANTEED
RETURN OPTION PLUS IS NOT AVAILABLE IF YOU ELECT THE GUARANTEED RETURN OPTION
PROGRAM (AND IT IS CURRENTLY ACTIVE), THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT
RIDER, THE GUARANTEED MINIMUM INCOME BENEFIT RIDER, THE LIFETIME FIVE INCOME
BENEFIT RIDER, THE HIGHEST DAILY VALUE DEATH BENEFIT, OR THE DOLLAR COST
AVERAGING PROGRAM IF IT INVOLVES TRANSFERS OUT OF THE FIXED ALLOCATIONS.
We offer a program that, after a seven-year period following commencement
of the program (we refer to the end of that period and any applicable subsequent
period as the "maturity date") and on each anniversary of the maturity date
thereafter while the program remains in effect, guarantees your Account Value
will not be less than your Account Value on the effective date of your program
(called the "Protected Principal Value"). The program also offers you the
opportunity to elect a second, enhanced guaranteed amount at a later date if
your Account Value has increased, while preserving the guaranteed amount
established on the effective date of your program. The enhanced guaranteed
amount (called the "Enhanced Protected Principal Value") guarantees that, after
a separate period following election of the enhanced guarantee and on each
anniversary thereafter while this enhanced guarantee amount remains in effect,
your Account Value will not be less than your Account Value on the effective
date of your election of the enhanced guarantee.
The program monitors your Account Value daily and, if necessary,
systematically transfers amounts between variable investment options you choose
and Fixed Allocations used to support the Protected Principal Value(s). The
program may be appropriate if you wish to protect a principal amount against
market downturns as of a specific date in the future, but also wish to invest in
the variable investment options to participate in market performance. There is
an additional charge if you elect the Guaranteed Return Option Plus program.
The guarantees provided by the program exist only on the applicable
maturity date(s) and on each anniversary of the maturity date(s) thereafter.
However, due to the ongoing monitoring of your Account Value and the transfer of
Account Value between the variable investment options and the Fixed Allocations
to support our future guarantees, the program may provide some protection from
significant market losses if you choose to surrender the Annuity or begin
receiving annuity payments prior to a maturity date. For this same reason, the
program may limit your ability to benefit from market increases while it is in
effect.
KEY FEATURE -- PROTECTED PRINCIPAL VALUE/ ENHANCED PROTECTED PRINCIPAL VALUE
The Guaranteed Return Option Plus offers a base guarantee as well as the option
of electing an enhanced guarantee at a later date.
- - BASE GUARANTEE: Under the base guarantee, American Skandia guarantees that
on the maturity date and on each anniversary of the maturity date
thereafter that the program remains in effect, your Account Value will be
no less than the Protected Principal Value. On the maturity date and on
each anniversary after the maturity date that the program remains in
effect, if your Account Value is below the Protected Principal Value,
American Skandia will
50
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
apply additional amounts to your Annuity from its general account to
increase your Account Value to be equal to the Protected Principal Value.
- - ENHANCED GUARANTEE: On any anniversary following commencement of the
program, you can establish an enhanced guaranteed amount based on your
current Account Value. Under the enhanced guarantee, American Skandia
guarantees that at the end of a specified period following the election of
the enhanced guarantee (also referred to as its "maturity date"), and on
each anniversary of the maturity date thereafter that the enhanced
guaranteed amount remains in effect, your Account Value will be no less
than the Enhanced Protected Principal Value. YOU CAN ELECT AN ENHANCED
GUARANTEE MORE THAN ONCE; HOWEVER, A SUBSEQUENT ELECTION SUPERSEDES THE
PRIOR ELECTION OF AN ENHANCED GUARANTEE. ELECTION OF AN ENHANCED GUARANTEE
DOES NOT IMPACT THE BASE GUARANTEE. IN ADDITION, YOU MAY ELECT AN "AUTO
STEP-UP" FEATURE THAT WILL AUTOMATICALLY CREATE AN ENHANCED GUARANTEE (OR
INCREASE YOUR ENHANCED GUARANTEE, IF PREVIOUSLY ELECTED) ON EACH
ANNIVERSARY OF THE PROGRAM (AND CREATE A NEW MATURITY PERIOD FOR THE NEW
ENHANCED GUARANTEE) IF THE ACCOUNT VALUE AS OF THAT ANNIVERSARY EXCEEDS
THE PROTECTED PRINCIPAL VALUE OR ENHANCED PROTECTED PRINCIPAL VALUE BY 7%
OR MORE. YOU MAY ALSO ELECT TO TERMINATE AN ENHANCED GUARANTEE. IF YOU
ELECT TO TERMINATE THE ENHANCED GUARANTEE, THE BASE GUARANTEE WILL REMAIN
IN EFFECT. If you have elected the enhanced guarantee, on the guarantee's
maturity date and on each anniversary of the maturity date thereafter that
the enhanced guarantee amount remains in effect, if your Account Value is
below the Enhanced Protected Principal Value, American Skandia will apply
additional amounts to your Annuity from its general account to increase
your Account Value to be equal to the Enhanced Protected Principal Value.
Any amounts added to your Annuity to support our guarantees under the
program will be applied to any Fixed Allocations first and then to the
sub-accounts pro rata, based on your most recent allocation instructions in
accordance with the allocation mechanism we use under the program. We will
notify you of any amounts added to your Annuity under the program. If our
assumptions are correct and the operations relating to the administration of the
program work properly, we do not expect that we will need to add additional
amounts to the Annuity. The Protected Principal Value is referred to as the
"Base Guarantee" and the Enhanced Protected Principal Value is referred to as
the "Step-up Guarantee" in the rider we issue for this benefit.
WITHDRAWALS UNDER YOUR ANNUITY
Withdrawals from your Annuity, while the program is in effect, will reduce the
base guarantee under the program as well as any enhanced guarantee. Cumulative
annual withdrawals up to 5% of the Protected Principal Value as of the effective
date of the program (adjusted for any subsequent Purchase Payments) will reduce
the applicable guaranteed amount by the actual amount of the withdrawal
(referred to as the "dollar-for-dollar limit"). If the amount withdrawn is
greater than the dollar-for-dollar limit, the portion of the withdrawal equal to
the dollar-for-dollar limit will be treated as described above, and the portion
of the withdrawal in excess of the dollar-for-dollar limit will reduce the base
guarantee and the enhanced guarantee proportionally, according to the formula as
described in the rider for this benefit (see the examples of this calculation
below). Withdrawals other than Systematic Withdrawals will be taken pro-rata
from the variable investment options and any Fixed Allocations. Systematic
Withdrawals will be taken pro-rata from the variable investment options and any
Fixed Allocations up to growth attributable to the Fixed Allocations and
thereafter pro-rata solely from the variable investment options. Withdrawals
will be subject to all other provisions of the Annuity, including any Contingent
Deferred Sales Charge and Market Value Adjustment that would apply.
Charges for other optional benefits under the Annuity that are deducted as
an annual charge in arrears will not reduce the applicable guaranteed amount
under the Guaranteed Return Option Plus program, however, any partial
withdrawals in payment of charges for the Plus40TM Optional Life Insurance Rider
(not currently offered for sale) and any third party investment advisory service
will be treated as withdrawals and will reduce the applicable guaranteed amount.
The following examples of dollar-for-dollar and proportional reductions
assume that: 1.) the Issue Date and the effective date of the GRO Plus(SM)
program are October 13, 2004; 2.) an initial Purchase Payment of $250,000; 3.) a
base guarantee amount of $250,000; and 4.) a dollar-for-dollar limit of $12,500
(5% of $250,000):
51
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 29, 2004 (in the first Annuity Year).
No prior withdrawals have been taken. As the amount withdrawn is less than the
Dollar-for-dollar Limit:
- - The base guarantee amount is reduced by the amount withdrawn (i.e., by
$10,000, from $250,000 to $240,000).
- - The remaining dollar-for-dollar limit ("Remaining Limit") for the balance
of the first Annuity Year is also reduced by the amount withdrawn (from
$12,500 to $2,500).
EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 18, 2004 (still within the
first Annuity Year). The Account Value immediately before the withdrawal is
$180,000. As the amount withdrawn exceeds the Remaining Limit of $2,500 from
Example 1:
- - The base guarantee amount is first reduced by the Remaining Limit (from
$240,000 to $237,500);
- - The result is then further reduced by the ratio of A to B,
where:
- A is the amount withdrawn less the Remaining Limit ($10,000 -
$2,500, or $7,500).
- B is the Account Value less the Remaining Limit ($180,000 - $2,500,
or $177,500).
The resulting base guarantee amount is: $237,500 x (1 - $7,500 /
$177,500), or $227,464.79.
- - The Remaining Limit is set to zero (0) for the balance of the first
Annuity Year.
EXAMPLE 3. RESET OF THE DOLLAR-FOR-DOLLAR LIMIT
A $10,000 withdrawal is made on December 19, 2005 (second Annuity Year). The
Remaining Limit has been reset to the dollar-for-dollar limit of $12,500. As the
amount withdrawn is less than the dollar-for-dollar limit:
- - The base guarantee amount is reduced by the amount withdrawn (i.e.,
reduced by $10,000, from $227,464.79 to $217,464.79).
- - The Remaining Limit for the balance of the second Annuity Year is also
reduced by the amount withdrawn (from $12,500 to $2,500).
KEY FEATURE -- ALLOCATION OF ACCOUNT VALUE
Account Value is transferred to and maintained in Fixed Allocations to the
extent we, in our sole discretion, deem it is necessary to support our
guarantee(s) under the program. We monitor fluctuations in your Account Value
each Valuation Day, as well as the prevailing interest rates on Fixed
Allocations, the remaining duration(s) until the applicable maturity date(s) and
the amount of Account Value allocated to Fixed Allocation(s) relative to a
"reallocation trigger", which determines whether Account Value must be
transferred to or from Fixed Allocation(s). While you are not notified when your
Account Value reaches a reallocation trigger, you will receive a confirmation
statement indicating the transfer of a portion of your Account Value either to
or from Fixed Allocation(s).
- - IF YOUR ACCOUNT VALUE IS GREATER THAN OR EQUAL TO THE REALLOCATION
TRIGGER, your Account Value in the variable investment options will remain
allocated according to your most recent instructions. If a portion of
Account Value was previously allocated to a Fixed Allocation to support
the applicable guaranteed amount, all or a portion of those amounts may be
transferred from the Fixed Allocation and re-allocated to the variable
investment options pro-rata according to your most recent allocation
instructions (including the model allocations under any asset allocation
program you may have elected). A Market Value Adjustment will apply when
we reallocate Account Value from a Fixed Allocation to the variable
investment options, which may result in a decrease or increase in your
Account Value.
- - IF YOUR ACCOUNT VALUE IS LESS THAN THE REALLOCATION TRIGGER, a portion of
your Account Value in the variable investment options will be transferred
from your variable investment options pro rata according to your
allocations to a new Fixed Allocation(s) to support the applicable
guaranteed amount. The new Fixed Allocation(s) will have a Guarantee
Period equal to the time remaining until the applicable maturity date(s).
The Account Value allocated to the new Fixed Allocation(s) will be
credited with the fixed interest rate(s) then being credited to a new
Fixed Allocation(s) maturing on the applicable maturity date(s) (rounded
to the next highest yearly duration). The Account Value will remain
invested in each applicable Fixed Allocation until the applicable maturity
date unless, at an earlier date, your Account Value is greater than or
equal to the reallocation trigger and, therefore, amounts can be
transferred to the variable investment options while maintaining the
guaranteed protection under the program (as described above).
52
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
IF A SIGNIFICANT AMOUNT OF YOUR ACCOUNT VALUE IS SYSTEMATICALLY TRANSFERRED TO
FIXED ALLOCATIONS TO SUPPORT THE PROTECTED PRINCIPAL VALUE AND/OR THE ENHANCED
PROTECTED PRINCIPAL VALUE DURING PERIODS OF MARKET DECLINES, LOW INTEREST RATES,
AND/OR AS THE PROGRAM NEARS ITS MATURITY DATE, LESS OF YOUR ACCOUNT VALUE MAY BE
AVAILABLE TO PARTICIPATE IN THE INVESTMENT EXPERIENCE OF THE VARIABLE INVESTMENT
OPTIONS IF THERE IS A SUBSEQUENT MARKET RECOVERY. DURING PERIODS CLOSER TO THE
MATURITY DATE OF THE BASE GUARANTEE OR ANY ENHANCED GUARANTEE, OR ANY
ANNIVERSARY OF SUCH MATURITY DATE(S), A SIGNIFICANT PORTION OF YOUR ACCOUNT
VALUE MAY BE ALLOCATED TO FIXED ALLOCATIONS TO SUPPORT ANY APPLICABLE GUARANTEED
AMOUNT(S). IF YOUR ACCOUNT VALUE IS LESS THAN THE REALLOCATION TRIGGER AND NEW
FIXED ALLOCATIONS MUST BE ESTABLISHED DURING PERIODS WHERE THE INTEREST RATE(S)
BEING CREDITED TO SUCH FIXED ALLOCATIONS IS LOW, A LARGER PORTION OF YOUR
ACCOUNT VALUE MAY NEED TO BE TRANSFERRED TO FIXED ALLOCATIONS TO SUPPORT THE
APPLICABLE GUARANTEED AMOUNT(S), CAUSING LESS OF YOUR ACCOUNT VALUE TO BE
AVAILABLE TO PARTICIPATE IN THE INVESTMENT EXPERIENCE OF THE VARIABLE INVESTMENT
OPTIONS.
Separate Fixed Allocations may be established in support of the Protected
Principal Value and the Enhanced Protected Principal Value (if elected). There
may also be circumstances when a Fixed Allocation will be established only in
support of the Protected Principal Value or the Enhanced Protected Principal
Value. If you elect an enhanced guarantee, it is more likely that a portion of
your Account Value may be allocated to Fixed Allocations and will remain
allocated for a longer period of time to support the Enhanced Protected
Principal Value, even during a period of positive market performance and/or
under circumstances where Fixed Allocations would not be necessary to support
the Protected Principal Value. Further, there may be circumstances where Fixed
Allocations in support of the Protected Principal Value or Enhanced Protected
Principal Value are transferred to the variable investment options differently
than each other because of the different guarantees they support.
American Skandia uses an allocation mechanism based on assumptions of
expected and maximum market volatility, interest rates and time left to the
maturity of the program to determine the reallocation trigger. The allocation
mechanism is used to determine the allocation of Account Value between Fixed
Allocations and the Sub-accounts you choose. American Skandia reserves the right
to change the allocation mechanism and the reallocation trigger at its
discretion, subject to regulatory approval where required. Changes to the
allocation mechanism and/or the reallocation trigger may be applied to existing
programs where allowed by law.
ELECTION OF THE PROGRAM
The Guaranteed Return Option Plus program can be elected at the time that you
purchase your Annuity, or on any Valuation Day thereafter (prior to
annuitization). If you elect the program after the Issue Date of your Annuity,
the program will be effective as of the Valuation Day that we receive the
required documentation in good order at our home office, and the guaranteed
amount will be based on your Account Value as of that date. If you previously
elected the Guaranteed Return Option program and wish to elect the Guaranteed
Return Option Plus program, your prior Guaranteed Return Option program will be
terminated. Termination of the Guaranteed Return Option for the purpose of
electing the Guaranteed Return Option Plus, will be treated as any other
termination of the Guaranteed Return Option (see below), including the
termination of any guaranteed amount, and application of any applicable Market
Value Adjustment when amounts are transferred to the variable investment options
as a result of the termination. The Guaranteed Return Option Plus program will
then be added to your Annuity BASED ON THE CURRENT ACCOUNT VALUE.
TERMINATION OF THE PROGRAM
You can elect to terminate the enhanced guarantee but maintain the protection
provided by the base guarantee. You also can terminate the Guaranteed Return
Option Plus program entirely. If you terminate the program entirely, you can
subsequently elect to participate in the program again (based on the Account
Value on that date) by furnishing the documentation we require. In a rising
market, you could, for example, terminate the program on a given Valuation Day
and two weeks later reinstate the program with a higher base guarantee (and a
new maturity date). However, your ability to reinstate the program is limited by
the following: (A) in any Annuity Year, we do not permit more than two program
elections (including any election made effective on the Annuity issue date and
any election made by a surviving spouse) and (B) a program reinstatement cannot
be effected on the same business day on which a program termination was
effected. Upon termination, any Account Value in the Fixed Allocations will be
transferred to the variable investment options pro-rata based on the Account
Values in such variable investment options, or in accordance with any effective
asset allocation program. A Market Value Adjustment will apply.
53
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
The program will terminate automatically upon: (a) the death of the Owner
or the Annuitant (in an entity owned contract); (b) as of the date Account Value
is applied to begin annuity payments; or (c) upon full surrender of the Annuity.
If you elect to terminate the program, the Guaranteed Return Option Plus will no
longer provide any guarantees. The surviving spouse may elect the benefit at any
time, subject to the limitations described above, after the death of the Annuity
Owner. The surviving spouse's election will be effective on the Valuation Day
that we receive the required documentation in good order at our home office, and
the Account Value on that Valuation Day will be the Protected Principal Value.
The charge for the Guaranteed Return Option Plus program will no longer be
deducted from your Account Value upon termination of the program.
SPECIAL CONSIDERATIONS UNDER THE GUARANTEED RETURN OPTION PLUS
This program is subject to certain rules and restrictions, including, but not
limited to the following:
- - Upon inception of the program, 100% of your Account Value must be
allocated to the variable investment options. No Fixed Allocations may be
in effect as of the date that you elect to participate in the program.
However, the reallocation trigger may transfer Account Value to Fixed
Allocations as of the effective date of the program under some
circumstances.
- - You cannot allocate any portion of Purchase Payments or transfer Account
Value to or from a Fixed Allocation while participating in the program;
however, all or a portion of any Purchase Payments may be allocated by us
to Fixed Allocations to support the amount guaranteed. You cannot
participate in any dollar cost averaging program that transfers Account
Value from a Fixed Allocation to a variable investment option.
- - Transfers from Fixed Allocations made as a result of the allocation
mechanism under the program will be subject to the Market Value Adjustment
formula under the Annuity; however, the 0.10% liquidity factor in the
formula will not apply. A Market Value Adjustment may be either positive
or negative. Transfer amounts will be taken from the most recently
established Fixed Allocation.
- - Transfers from the Sub-accounts to Fixed Allocations or from Fixed
Allocations to the Sub-accounts under the program will not count toward
the maximum number of free transfers allowable under the Annuity.
- - Any amounts applied to your Account Value by American Skandia on the
maturity date or any anniversary of the maturity date will not be treated
as "investment in the contract" for income tax purposes.
- - Low interest rates may require allocation to Fixed Allocations even when
the current Account Value exceeds the guarantee.
- - As the time remaining until the applicable maturity date gradually
decreases the program will become increasingly sensitive to moves to Fixed
Allocations.
- - We currently limit the variable investment options in which you may
allocate Account Value if you participate in this program. We reserve the
right to transfer any Account Value in a prohibited investment option to
an eligible investment option. Should we prohibit access to any investment
option, any transfers required to move Account Value to eligible
investment options will not be counted in determining the number of free
transfers during an Annuity Year. We may also require that you allocate
your Account Value according to an asset allocation model.
CHARGES UNDER THE PROGRAM
We deduct a charge equal to 0.25% of the average daily net assets of the
sub-accounts for participation in the Guaranteed Return Option Plus program. The
annual charge is deducted daily. Account Value allocated to Fixed Allocations
under the program is not subject to the charge. The charge is deducted to
compensate American Skandia for: (a) the risk that your Account Value on the
maturity date is less than the amount guaranteed; and (b) administration of the
program.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
GUARANTEED RETURN OPTION (GRO)
THE GUARANTEED RETURN OPTION DESCRIBED BELOW IS OFFERED ONLY IN THOSE
JURISDICTIONS WHERE WE HAVE NOT YET RECEIVED REGULATORY APPROVAL FOR THE
GUARANTEED RETURN OPTION PLUS AS OF THE DATE THE ELECTION OF THE OPTION IS MADE.
CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN JURISDICTIONS. THE PROGRAM CAN
BE ELECTED BY NEW PURCHASERS ON THE ISSUE DATE OF THEIR ANNUITY, AND CAN BE
ELECTED BY EXISTING ANNUITY OWNERS ON EITHER THE ANNIVERSARY OF THE ISSUE DATE
OF THEIR ANNUITY OR ON A DATE OTHER THAN THAT ANNIVERSARY, AS DESCRIBED BELOW
UNDER "ELECTION OF THE PROGRAM". THE GUARANTEED RETURN OPTION IS NOT AVAILABLE
IF YOU ELECT THE GRO PLUS RIDER, THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT
RIDER, THE GUARANTEED MINIMUM INCOME BENEFIT RIDER, THE LIFETIME FIVE INCOME
BENEFIT RIDER, THE HIGHEST DAILY VALUE DEATH BENEFIT OR THE DOLLAR COST
AVERAGING PROGRAM IF IT INVOLVES TRANSFERS OUT OF THE FIXED ALLOCATIONS.
We offer a program that, after a seven-year period following commencement
of the program (we refer to the end of that period as the "maturity date")
guarantees your Account Value will not be less than your Account Value on the
effective date of your program (called the "Protected Principal Value").
The program monitors your Account Value daily and, if necessary,
systematically transfers amounts between variable investment options you choose
and the Fixed Allocation used to support the Protected Principal Value. The
program may be appropriate if you wish to protect a principal amount against
market downturns as of a specific date in the future, but also wish to invest in
the variable investment options to participate in market performance. There is
an additional charge if you elect the Guaranteed Return Option program.
The guarantee provided by the program exists only on the applicable
maturity date. However, due to the ongoing monitoring of your Account Value and
the transfer of Account Value between the variable investment options and the
Fixed Allocation to support our future guarantee, the program may provide some
protection from significant market losses if you choose to surrender the Annuity
or begin receiving annuity payments prior to a maturity date. For this same
reason, the program may limit your ability to benefit from market increases
while it is in effect.
KEY FEATURE -- PROTECTED PRINCIPAL VALUE
- - Under the GRO option, American Skandia guarantees that on the maturity
date, your Account Value will be no less than the Protected Principal
Value. On the maturity date if your Account Value is below the Protected
Principal Value, American Skandia will apply additional amounts to your
Annuity from its general account to increase your Account Value to be
equal to the Protected Principal Value.
Any amounts added to your Annuity to support our guarantee under the
program will be applied to the Fixed Allocation first and then to the
Sub-accounts pro rata, based on your most recent allocation instructions in
accordance with the allocation mechanism we use under the program. We will
notify you of any amounts added to your Annuity under the program. If our
assumptions are correct and the operations relating to the administration of the
program work properly, we do not expect that we will need to add additional
amounts to the Annuity. The Protected Principal Value is generally referred to
as the "Guaranteed Amount" in the rider we issue for this benefit.
KEY FEATURE -- ALLOCATION OF ACCOUNT VALUE
Account Value is transferred to and maintained in a Fixed Allocation to the
extent we, in our sole discretion, deem it is necessary to support our guarantee
under the program. We monitor fluctuations in your Account Value each Valuation
Day, as well as the prevailing interest rate on the Fixed Allocation, the
remaining duration until the applicable maturity date and the amount of Account
Value allocated to the Fixed Allocation relative to a "reallocation trigger",
which determines whether Account Value must be transferred to or from the Fixed
Allocation. While you are not notified when your Account Value reaches a
reallocation trigger, you will receive a confirmation statement indicating the
transfer of a portion of your Account Value either to or from the Fixed
Allocation.
- - IF YOUR ACCOUNT VALUE IS GREATER THAN OR EQUAL TO THE REALLOCATION
TRIGGER, your Account Value in the variable investment options will remain
allocated according to your most recent instructions. If a portion of
Account Value was previously allocated to the Fixed Allocation to support
the guaranteed amount, all or a portion of those amounts may be
transferred from the Fixed Allocation and re-allocated to the variable
investment options pro-rata according to your most recent allocation
instructions (including the model allocations under any asset allocation
program you may have elected). A Market Value Adjustment will apply when
we reallocate Account Value from the Fixed Allocation to
55
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
the variable investment options, which may result in a decrease or
increase in your Account Value.
- - IF YOUR ACCOUNT VALUE IS LESS THAN THE REALLOCATION TRIGGER, a portion of
your Account Value in the variable investment options will be transferred
from your variable investment options pro rata according to your
allocations to a new Fixed Allocation to support the guaranteed amount.
The new Fixed Allocation will have a Guarantee Period equal to the time
remaining until the applicable maturity date. The Account Value allocated
to the new Fixed Allocation will be credited with the fixed interest rate
then being credited to a new Fixed Allocation maturing on the applicable
maturity date (rounded to the next highest yearly duration). The Account
Value will remain invested in the Fixed Allocation until the maturity date
unless, at an earlier date, your Account Value is greater than or equal to
the reallocation trigger and, therefore, amounts can be transferred to the
variable investment options while maintaining the guaranteed protection
under the program (as described above).
IF A SIGNIFICANT AMOUNT OF YOUR ACCOUNT VALUE IS SYSTEMATICALLY TRANSFERRED TO
THE FIXED ALLOCATION TO SUPPORT THE PROTECTED PRINCIPAL VALUE DURING PERIODS OF
MARKET DECLINES, LOW INTEREST RATES, AND/OR AS THE PROGRAM NEARS ITS MATURITY
DATE, LESS OF YOUR ACCOUNT VALUE MAY BE AVAILABLE TO PARTICIPATE IN THE
INVESTMENT EXPERIENCE OF THE VARIABLE INVESTMENT OPTIONS IF THERE IS A
SUBSEQUENT MARKET RECOVERY. DURING PERIODS CLOSER TO THE MATURITY DATE OF THE
GUARANTEE A SIGNIFICANT PORTION OF YOUR ACCOUNT VALUE MAY BE ALLOCATED TO THE
FIXED ALLOCATION TO SUPPORT ANY APPLICABLE GUARANTEED AMOUNT. IF YOUR ACCOUNT
VALUE IS LESS THAN THE REALLOCATION TRIGGER AND A NEW FIXED ALLOCATION MUST BE
ESTABLISHED DURING PERIODS WHERE THE INTEREST RATE BEING CREDITED TO SUCH FIXED
ALLOCATION IS LOW, A LARGER PORTION OF YOUR ACCOUNT VALUE MAY NEED TO BE
TRANSFERRED TO THE FIXED ALLOCATION TO SUPPORT THE GUARANTEED AMOUNT, CAUSING
LESS OF YOUR ACCOUNT VALUE TO BE AVAILABLE TO PARTICIPATE IN THE INVESTMENT
EXPERIENCE OF THE VARIABLE INVESTMENT OPTIONS.
American Skandia uses an allocation mechanism based on assumptions of
expected and maximum market volatility, interest rates and time left to the
maturity of the program to determine the reallocation trigger. The allocation
mechanism is used to determine the allocation of Account Value between the Fixed
Allocation and the Sub-accounts you choose. American Skandia reserves the right
to change the allocation mechanism and the reallocation trigger at its
discretion, subject to regulatory approval where required. Changes to the
allocation mechanism and/or the reallocation trigger may be applied to existing
programs where allowed by law.
ELECTION OF THE PROGRAM
The Guaranteed Return Option can be elected at the time that you purchase your
Annuity, or on any Valuation Day thereafter (prior to annuitization). If you
elect the program after the Issue Date of your Annuity, the program will be
effective as of the business day that we receive the required documentation in
good order at our home office, and the guaranteed amount will be based on your
Account Value as of that date.
TERMINATION OF THE PROGRAM
The Annuity Owner also can terminate the Guaranteed Return Option program. Upon
termination, any Account Value in the Fixed Allocation will be transferred to
the variable investment options pro rata based on the Account Values in such
variable investment options, or in accordance with any effective asset
allocation program. A Market Value Adjustment will apply.
The program will terminate automatically upon: (a) the death of the Owner
or the Annuitant (in an entity owned contract); (b) as of the date Account Value
is applied to begin annuity payments; or (c) upon full surrender of the Annuity.
If you elect to terminate the program, the Guaranteed Return Option will no
longer provide any guarantees. If the surviving spouse assumes the Annuity,
he/she may re-elect the benefit on any anniversary of the Issue Date of the
Annuity or, if the deceased Owner had not previously elected the benefit, may
elect the benefit at any time. The surviving spouse's election will be effective
on the Valuation Day that we receive the required documentation in good order at
our home office, and the Account Value on that Valuation Day will be the
Protected Principal Value.
The charge for the Guaranteed Return Option program will no longer be
deducted from your Account Value upon termination of the program.
SPECIAL CONSIDERATIONS UNDER THE GUARANTEED RETURN OPTION
This program is subject to certain rules and restrictions, including, but not
limited to the following:
- - Upon inception of the program, 100% of your Account Value must be
allocated to the variable investment options.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
The Fixed Allocation may not be in effect as of the date that you elect to
participate in the program. However, the reallocation trigger may transfer
Account Value to the Fixed Allocation as of the effective date of the
program under some circumstances.
- - Annuity Owners cannot allocate any portion of Purchase Payments or
transfer Account Value to or from the Fixed Allocation while participating
in the program; however, all or a portion of any Purchase Payments may be
allocated by us to the Fixed Allocation to support the amount guaranteed.
You cannot participate in any dollar cost averaging program that transfers
Account Value from the Fixed Allocation to a variable investment option.
- - Transfers from the Fixed Allocation made as a result of the allocation
mechanism under the program will be subject to the Market Value Adjustment
formula under the Annuity; however, the 0.10% liquidity factor in the
formula will not apply. A Market Value Adjustment may be either positive
or negative. Transfer amounts will be taken from the most recently
established Fixed Allocation.
- - Transfers from the Sub-accounts to the Fixed Allocation or from the Fixed
Allocation to the Sub-accounts under the program will not count toward the
maximum number of free transfers allowable under the Annuity.
- - Any amounts applied to your Account Value by American Skandia on the
maturity date or any anniversary of the maturity date will not be treated
as "investment in the contract" for income tax purposes.
- - Low interest rates may require allocation to the Fixed Allocation even
when the current Account Value exceeds the guarantee.
- - As the time remaining until the applicable maturity date gradually
decreases the program will become increasingly sensitive to moves to the
Fixed Allocation.
- - We currently limit the variable investment options in which you may
allocate Account Value if you participate in this program. We reserve the
right to transfer any Account Value in a prohibited investment option to
an eligible investment option. Should we prohibit access to any investment
option, any transfers required to move Account Value to eligible
investment options will not be counted in determining the number of free
transfers during an Annuity Year. We may also require that you allocate
your Account Value according to an asset allocation model.
CHARGES UNDER THE PROGRAM
We deduct a charge equal to 0.25% of your Account Value allocated to the
sub-accounts for participation in the Guaranteed Return Option program. The
annual charge is deducted daily. Account Value allocated to the Fixed Allocation
under the program is not subject to the charge. The charge is deducted to
compensate American Skandia for: (a) the risk that your Account Value on the
maturity date is less than the amount guaranteed; and (b) administration of the
program.
Effective November 18, 2002, American Skandia changed the manner in which the
annual charge for the Guaranteed Return Option is deducted to the method
described above. The annual charge for the Guaranteed Return Option for Owners
who elected the benefit between January 23, 2002 and November 15, 2002 and
subsequent to November 19, 2002 in those states where the daily deduction of the
charge has not been approved, is deducted annually, in arrears, according to the
prospectus in effect as of the date the program was elected. Owners who
terminate and then re-elect the Guaranteed Return Option or elect to restart the
Guaranteed Return Option at any time after November 18, 2002 will be subject to
the charge method described above.
57
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
GUARANTEED MINIMUM WITHDRAWAL BENEFIT (GMWB)
THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT PROGRAM DESCRIBED BELOW IS ONLY BEING
OFFERED IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY APPROVAL AND
WILL BE OFFERED SUBSEQUENTLY IN OTHER JURISDICTIONS WHEN WE RECEIVE REGULATORY
APPROVAL IN THOSE JURISDICTIONS. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN
JURISDICTIONS ONCE APPROVED. CURRENTLY, THE PROGRAM CAN ONLY BE ELECTED BY NEW
PURCHASERS ON THE ISSUE DATE OF THEIR ANNUITY. WE MAY OFFER THE PROGRAM TO
EXISTING ANNUITY OWNERS IN THE FUTURE, SUBJECT TO OUR ELIGIBILITY RULES AND
RESTRICTIONS. THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT PROGRAM IS NOT AVAILABLE
IF YOU ELECT THE GUARANTEED RETURN OPTION, GUARANTEED RETURN OPTION PLUS, THE
GUARANTEED MINIMUM INCOME BENEFIT RIDER OR THE LIFETIME FIVE INCOME BENEFIT
RIDER.
We offer a program that guarantees your ability to withdraw amounts equal
to an initial principal value (called the "Protected Value"), regardless of the
impact of market performance on your Account Value, subject to our program rules
regarding the timing and amount of withdrawals. The program may be appropriate
if you intend to make periodic withdrawals from your Annuity and wish to ensure
that market performance will not affect your ability to protect your principal.
You are not required to make withdrawals as part of the program -- the guarantee
is not lost if you withdraw less than the maximum allowable amount of principal
each year under the rules of the program. There is an additional charge if you
elect the GMWB program; however, the charge may be waived under certain
circumstances described below.
KEY FEATURE -- PROTECTED VALUE
The Protected Value is the total amount that we guarantee will be available to
you through withdrawals from your Annuity and/or benefit payments, regardless of
the impact of market performance on your Account Value. The Protected Value is
reduced with each withdrawal you make until the Protected Value is reduced to
zero. When the Protected Value is reduced to zero due to your withdrawals, the
GMWB program terminates. Additionally, the Protected Value is used to determine
the maximum annual amount that you can withdraw from your Annuity, called the
Protected Annual Withdrawal Amount, without triggering an adjustment in the
Protected Value. The Protected Value is referred to as the "Benefit Base" in the
rider we issue for this benefit.
The Protected Value is determined as of the date you make your first
withdrawal under the Annuity following your election of the GMWB program. The
initial Protected Value is equal to the greater of (A) the Account Value on the
date you elect the GMWB program, plus any additional Purchase Payments before
the date of your first withdrawal; or (B) the Account Value as of the date of
the first withdrawal from your Annuity. The Protected Value may be enhanced by
increases in your Account Value due to market performance during the period
between your election of the GMWB program and the date of your first withdrawal.
- - If you elect the GMWB program at the time you purchase your Annuity, the
Account Value will be your initial Purchase Payment plus any Credit
applied to such Purchase Payment.
- - IF WE OFFER THE GMWB PROGRAM TO EXISTING ANNUITY OWNERS, the Account Value
on the anniversary of the Issue Date of your Annuity following your
election of the GMWB program will be used to determine the initial
Protected Value.
- - If you make additional Purchase Payments after your first withdrawal, the
Protected Value will be increased by the amount of the additional Purchase
Payment and any Credits that we apply to the Purchase Payment.
You may elect to step-up your Protected Value if, due to positive market
performance, your Account Value is greater than the Protected Value. You are
eligible to step-up the Protected Value on or after the 5th Annuity anniversary
following the first withdrawal under the GMWB program. The Protected Value can
be stepped up again on or after the 5th Annuity anniversary following the
preceding step-up. If you elect to step-up the Protected Value, you must do so
during the 30-day period prior to your eligibility date. If you elect to step-up
the Protected Value under the program, and on the date you elect to step-up, the
charges under the GMWB program have changed for new purchasers, your program may
be subject to the new charge going forward.
Upon election of the step-up, we reset the Protected Value to be equal to
the then current Account Value. For example, assume your initial Protected Value
was $100,000 and you have made cumulative withdrawals of $40,000, reducing the
Protected Value to $60,000. On the date you are eligible to step-up the
Protected Value, your Account Value is equal to $75,000. You could elect to
58
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
step-up the Protected Value to $75,000 on the date you are eligible. Upon
election of the step-up, we also reset the Protected Annual Withdrawal Amount
(discussed immediately below) to be equal to the greater of (A) the Protected
Annual Withdrawal Amount immediately prior to the reset; and (B) 7% of the
Protected Value immediately after the reset.
KEY FEATURE -- PROTECTED ANNUAL WITHDRAWAL AMOUNT
The initial Protected Annual Withdrawal Amount is equal to 7% of the Protected
Value. Under the GMWB program, if your cumulative withdrawals each Annuity Year
are less than or equal to the Protected Annual Withdrawal Amount, your Protected
Value will be reduced on a "dollar-for-dollar" basis (the Protected Value is
reduced by the actual amount of the withdrawal, including any MVA that may
apply). Cumulative withdrawals in any Annuity Year that exceed the Protected
Annual Withdrawal Amount trigger a proportional adjustment to both the Protected
Value and the Protected Annual Withdrawal Amount, as described in the rider for
this benefit (see the examples of this calculation below). The Protected Annual
Withdrawal Amount is referred to as the "Maximum Annual Benefit" in the rider we
issue for this benefit.
THE GMWB PROGRAM DOES NOT AFFECT YOUR ABILITY TO MAKE WITHDRAWALS UNDER
YOUR ANNUITY OR LIMIT YOUR ABILITY TO REQUEST WITHDRAWALS THAT EXCEED THE
PROTECTED ANNUAL WITHDRAWAL AMOUNT. You are not required to withdraw all or any
portion of the Protected Annual Withdrawal Amount each Annuity Year.
- - If, cumulatively, you withdraw an amount less than the Protected Annual
Withdrawal Amount in any Annuity Year, you cannot carry-over the unused
portion of the Protected Annual Withdrawal Amount to subsequent Annuity
Years. However, because the Protected Value is only reduced by the actual
amount of withdrawals you make under these circumstances, any unused
Protected Annual Withdrawal Amount may extend the period of time until the
remaining Protected Value is reduced to zero.
- - Additional Purchase Payments will increase the Protected Annual Withdrawal
Amount by 7% of the applicable Purchase Payment (and any Credits we apply
to such Purchase Payment).
- - If the Protected Annual Withdrawal Amount after an adjustment exceeds the
Protected Value, the Protected Annual Withdrawal Amount will be set equal
to the Protected Value.
The following examples of dollar-for dollar and proportional reductions
and the reset of the Maximum Annual Benefit assume that: 1.) the Issue Date and
the effective date of the GMWB program are October 13, 2004; 2.) an initial
Purchase Payment of $250,000; 3.) a Protected Value of $250,000; and 4.) a
Protected Annual Withdrawal Amount of $17,500 (7% of $250,000):
EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 13, 2004 (in the first Annuity Year).
No prior withdrawals have been taken. As the amount withdrawn is less than the
Protected Annual Withdrawal Amount:
- - The Protected Value is reduced by the amount withdrawn (i.e., by $10,000,
from $250,000 to $240,000).
- - The remaining Protected Annual Withdrawal Amount for the balance of the
first Annuity Year is also reduced by the amount withdrawn (from $17,500
to $7,500).
EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 13, 2004 (still within the
first Annuity Year). The Account Value immediately before the withdrawal is
$220,000. As the amount withdrawn exceeds the remaining Protected Annual
Withdrawal Amount of $7,500 from Example 1:
- - The Protected Value is first reduced by the remaining Protected Annual
Withdrawal Amount (from $240,000 to $232,500);
- - The result is then further reduced by the ratio of A to B, where:
- A is the amount withdrawn less the remaining Protected Annual
Withdrawal Amount ($10,000 - $7,500, or $2,500).
- B is the Account Value less the remaining Protected Annual
Withdrawal Amount ($220,000 - $7,500, or $212,500).
The resulting Protected Value is: $232,500 * (1 - $2,500 / $212,500), or
$229,764.71.
- - the Protected Annual Withdrawal Amount is also reduced by the ratio of A
to B: The resulting Protected Annual Withdrawal Amount is: $17,500 x (1 -
$2,500 / $212,500), or $17,294.12.
- - The remaining Protected Annual Withdrawal Amount is set to zero (0) for
the balance of the first Annuity Year.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
EXAMPLE 3. RESET OF THE MAXIMUM ANNUAL BENEFIT
A $10,000 withdrawal is made on October 13, 2005 (second Annuity Year). The
remaining Protected Annual Withdrawal Amount has been reset to the Protected
Annual Withdrawal Amount of $17,294.12 from Example 2. As the amount withdrawn
is less than the remaining Protected Annual Withdrawal Amount:
- - the Protected Value is reduced by the amount withdrawn (i.e., reduced by
$10,000, from $229,764.71 to $219,764.71).
- - The remaining Protected Annual Withdrawal Amount for the balance of the
second Annuity Year is also reduced by the amount withdrawn (from
$17,294.12 to $7,294.12).
BENEFITS UNDER THE GMWB PROGRAM
- - In addition to any withdrawals you make under the GMWB program, market
performance may reduce your Account Value. If your Account Value is equal
to zero, and you have not received all of your Protected Value in the form
of withdrawals from your Annuity, we will continue to make payments equal
to the remaining Protected Value in the form of fixed, periodic payments
until the remainder of the Protected Value is paid, at which time the
rider terminates. The fixed, periodic payments will each be equal to the
Protected Annual Withdrawal Amount, except for the last payment which may
be equal to the remaining Protected Value. We will determine the duration
for which periodic payments will continue by dividing the Protected Value
by the Protected Annual Withdrawal Amount. You will not have the right to
make additional Purchase Payments or receive the remaining Protected Value
in a lump sum. You can elect the frequency of payments, subject to our
rules then in effect.
- - If the death benefit under the Annuity becomes payable before you have
received all of your Protected Value in the form of withdrawals from your
Annuity, your Beneficiary has the option to elect to receive the remaining
Protected Value as an alternate death benefit payout in lieu of the amount
payable under any other death benefit provided under the Annuity. The
remaining Protected Value will be payable in the form of fixed, periodic
payments. Your beneficiary can elect the frequency of payments, subject to
our rules then in effect. We will determine the duration for which
periodic payments will continue by dividing the Protected Value by the
Protected Annual Withdrawal Amount. THE PROTECTED VALUE IS NOT EQUAL TO
THE ACCOUNT VALUE FOR PURPOSES OF THE ANNUITY'S OTHER DEATH BENEFIT
OPTIONS. THE GMWB PROGRAM DOES NOT INCREASE OR DECREASE THE AMOUNT
OTHERWISE PAYABLE UNDER THE ANNUITY'S OTHER DEATH BENEFIT OPTIONS.
GENERALLY, THE GMWB PROGRAM WOULD BE OF VALUE TO YOUR BENEFICIARY ONLY
WHEN THE PROTECTED VALUE AT DEATH EXCEEDS ANY OTHER AMOUNT AVAILABLE AS A
DEATH BENEFIT.
- - If you elect to begin receiving annuity payments before you have received
all of your Protected Value in the form of withdrawals from your Annuity,
an additional annuity payment option will be available that makes fixed
annuity payments for a certain period, determined by dividing the
Protected Value by the Protected Annual Withdrawal Amount. If you elect to
receive annuity payments calculated in this manner, the assumed interest
rate used to calculate such payments will be 0%, which is less than the
assumed interest rate on other annuity payment options we offer. This 0%
assumed interest rate results in lower annuity payments than what would
have been paid if the assumed interest rate was higher than 0%. YOU CAN
ALSO ELECT TO TERMINATE THE GMWB PROGRAM AND BEGIN RECEIVING ANNUITY
PAYMENTS BASED ON YOUR THEN CURRENT ACCOUNT VALUE (NOT THE REMAINING
PROTECTED VALUE) UNDER ANY OF THE AVAILABLE ANNUITY PAYMENT OPTIONS.
OTHER IMPORTANT CONSIDERATIONS
- - Withdrawals under the GMWB program are subject to all of the terms and
conditions of the Annuity, including any MVA that may apply.
- - Withdrawals made while the GMWB program is in effect will be treated, for
tax purposes, in the same way as any other withdrawals under the Annuity.
- - The GMWB program does not directly affect the Annuity's Account Value or
Surrender Value, but any withdrawal will decrease the Account Value by the
amount of the withdrawal. If you surrender your Annuity, you will receive
the current Surrender Value, not the Protected Value.
- - You can make withdrawals from your Annuity while your Account Value is
greater than zero without purchasing the GMWB program. The GMWB program
provides a guarantee that if your Account Value declines due to market
performance, you will be able to receive your Protected Value in the form
of periodic benefit payments.
- - We currently limit the variable investment options in which you may
allocate Account Value if you participate in this program. We reserve the
right to transfer any Account
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Value in a prohibited investment option to an eligible investment option.
Should we prohibit access to any investment option, any transfers required
to move Account Value to eligible investment options will not be counted
in determining the number of free transfers during an Annuity Year. We may
also require that you allocate your Account Value according to an asset
allocation model.
ELECTION OF THE PROGRAM
Currently, the GMWB program can only be elected at the time that you purchase
your Annuity. In the future, we may offer existing Annuity Owners the option to
elect the GMWB program after the Issue Date of their Annuity, subject to our
eligibility rules and restrictions. If you elect the GMWB program after the
Issue Date of your Annuity, the program will be effective as of the next
anniversary date. Your Account Value as of such anniversary date will be used to
calculate the initial Protected Value and the initial Protected Annual
Withdrawal Amount.
We reserve the right to restrict the maximum amount of Protected Value
that may be covered under the GMWB program under this Annuity or any other
annuities that you own that are issued by American Skandia or its affiliated
companies.
TERMINATION OF THE PROGRAM
The program terminates automatically when your Protected Value reaches zero
based on your withdrawals. You may terminate the program at any time by
notifying us. If you terminate the program, any guarantee provided by the
benefit will terminate as of the date the termination is effective. The program
terminates upon your surrender of the Annuity, upon due proof of death (unless
your surviving spouse elects to continue the Annuity and the GMWB program or
your Beneficiary elects to receive the amounts payable under the GMWB program in
lieu of the death benefit) or upon your election to begin receiving annuity
payments.
The charge for the GMWB program will no longer be deducted from your
Account Value upon termination of the program.
CHARGES UNDER THE PROGRAM
Currently, we deduct a charge equal to 0.35% of the average daily net assets of
the Sub-accounts per year to purchase the GMWB program. The annual charge is
deducted daily. Account Value allocated to Fixed Allocations under the program
is not subject to the charge.
- - If, during the seven years following the effective date of the program,
you do not make any withdrawals, and do not make any additional Purchase
Payments after a five-year period following the effective date of the
program, the program will remain in effect; however, we will waive the
annual charge going forward. If you make an additional Purchase Payment
following the waiver of the annual charge, we will begin charging for the
program. After year seven (7) following the effective date of the program,
withdrawals will not cause a charge to be re-imposed.
- - If you elect to step-up the Protected Value under the program, and on the
date you elect to step-up, the charges under the program have changed for
new purchasers, your program may be subject to the new charge level for
the benefit.
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS
If you purchase an Annuity as an investment vehicle for "qualified" investments,
including an IRA, SEP-IRA, Roth IRA or Tax Sheltered Annuity (or 403(b)), the
minimum distribution rules under the Code require that you begin receiving
periodic amounts from your Annuity beginning after age 701/2. The amount
required under the Code may exceed the Protected Annual Withdrawal Amount, which
will cause us to recalculate the Protected Value and the Protected Annual
Withdrawal Amount, resulting in a lower amount payable in future Annuity Years.
In addition, the amount and duration of payments under the annuity payment and
death benefit provisions may be adjusted so that the payments do not trigger any
penalty or excise taxes due to tax considerations such as minimum distribution
requirements.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
GUARANTEED MINIMUM INCOME BENEFIT (GMIB)
THE GUARANTEED MINIMUM INCOME BENEFIT PROGRAM DESCRIBED BELOW IS ONLY BEING
OFFERED IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY APPROVAL, AND
WILL BE OFFERED SUBSEQUENTLY IN OTHER JURISDICTIONS WHEN WE RECEIVE REGULATORY
APPROVAL IN THOSE JURISDICTIONS. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN
JURISDICTIONS ONCE APPROVED. CURRENTLY, THE PROGRAM CAN ONLY BE ELECTED BY NEW
PURCHASERS ON THE ISSUE DATE OF THEIR ANNUITY. WE MAY OFFER THE PROGRAM TO
EXISTING ANNUITY OWNERS IN THE FUTURE, SUBJECT TO OUR ELIGIBILITY RULES AND
RESTRICTIONS. THE GUARANTEED MINIMUM INCOME BENEFIT PROGRAM IS NOT AVAILABLE IF
YOU ELECT THE GUARANTEED RETURN OPTION PROGRAM, GUARANTEED RETURN OPTION PLUS
PROGRAM, THE GUARANTEED MINIMUM WITHDRAWAL BENEFIT RIDER OR THE LIFETIME FIVE
INCOME BENEFIT RIDER.
We offer a program that, after a seven-year waiting period, guarantees
your ability to begin receiving income from your Annuity in the form of annuity
payments based on a guaranteed minimum value (called the "Protected Income
Value") that increases after the waiting period begins, regardless of the impact
of market performance on your Account Value. The program may be appropriate for
you if you anticipate using your Annuity as a future source of periodic fixed
income payments for the remainder of your life and wish to ensure that the basis
upon which your income payments will be calculated will achieve at least a
minimum amount despite fluctuations in market performance. There is an
additional charge if you elect the GMIB program.
KEY FEATURE -- PROTECTED INCOME VALUE
The Protected Income Value is the minimum amount that we guarantee will be
available (net of any applicable tax charge), after a waiting period of at least
seven years, as a basis to begin receiving fixed annuity payments. The Protected
Income Value is initially established on the effective date of the GMIB program
and is equal to your Account Value on such date. Currently, since the GMIB
program may only be elected at issue, the effective date is the Issue Date of
the Annuity. The Protected Income Value is increased daily based on an annual
growth rate of 5%, subject to the limitations described below. The Protected
Income Value is referred to as the "Protected Value" in the rider we issue for
this benefit. The 5% annual growth rate is referred to as the "Roll-Up
Percentage" in the rider we issue for this benefit.
The Protected Income Value is subject to a limit of 200% (2X) of the sum
of the Protected Income Value established on the effective date of the GMIB
program, or the effective date of any step-up value, plus any additional
Purchase Payments and any Credits that are applied to such Purchase Payments
made after the waiting period begins ("Maximum Protected Income Value"), minus
the sum of any reductions in the Protected Income Value due to withdrawals you
make from the Annuity after the waiting period begins.
- - Subject to the maximum age/durational limits described immediately below,
we will no longer increase the Protected Income Value by the 5% annual
growth rate once you reach the Maximum Protected Income Value. However, we
will increase the Protected Income Value by the amount of any additional
Purchase Payments and any Credits applied to such Purchase Payments after
you reach the Maximum Protected Income Value. Further, if you make
withdrawals after you reach the Maximum Protected Income Value, we will
reduce the Protected Income Value and the Maximum Protected Income Value
by the proportional impact of the withdrawal on your Account Value.
- - Subject to the Maximum Protected Income Value, we will no longer increase
the Protected Income Value by the 5% annual growth rate after the later of
the anniversary date on or immediately following the Annuitant's 80th
birthday or the 7th anniversary of the later of the effective date of the
GMIB program or the effective date of the most recent step-up. However, we
will increase the Protected Income Value by the amount of any additional
Purchase Payments and any Credits applied to such Purchase Payments.
Further, if you make withdrawals after the Annuitant reaches the maximum
age/duration limits, we will reduce the Protected Income Value and the
Maximum Protected Income Value by the proportional impact of the
withdrawal on your Account Value.
- - Subject to the Maximum Protected Income Value, if you make an additional
Purchase Payment, we will increase the Protected Income Value by the
amount of the Purchase Payment and will apply the 5% annual growth rate on
the new amount from the date the Purchase Payment is applied.
- - As described below, after the waiting period begins, cumulative
withdrawals each Annuity Year that are up to 5% of
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
the Protected Income Value on the prior anniversary of the Annuity will
reduce the Protected Income Value by the amount of the withdrawal.
Cumulative withdrawals each Annuity Year in excess of 5% of the Protected
Income Value on the prior anniversary of the Annuity, will reduce the
Protected Income Value proportionately. All withdrawals after the Maximum
Protected Income Value is reached will reduce the Protected Income Value
proportionately. The 5% annual growth rate will be applied to the reduced
Protected Income Value from the date of the withdrawal.
Stepping-Up the Protected Income Value -- You may elect to "step-up" or
"reset" your Protected Income Value if your Account Value is greater than the
current Protected Income Value. Upon exercise of the step-up provision, your
initial Protected Income Value will be reset equal to your current Account
Value. From the date that you elect to step-up the Protected Income Value, we
will apply the 5% annual growth rate to the stepped-up Protected Income Value,
as described above. You can exercise the step-up provision twice while the GMIB
program is in effect, and only while the Annuitant is less than age 76.
- - A new seven-year waiting period will be established upon the effective
date of your election to step-up the Protected Income Value. You cannot
exercise your right to begin receiving annuity payments under the GMIB
program until the end of the new waiting period.
- - The Maximum Protected Income Value will be reset as of the effective date
of any step-up. The new Maximum Protected Income Value will be equal to
200% of the sum of the Protected Income Value as of the effective date of
the step-up plus any subsequent Purchase Payments, minus the impact of any
withdrawals after the date of the step-up.
- - When determining the guaranteed annuity purchase rates for annuity
payments under the GMIB program, we will apply such rates based on the
number of years since the most recent step-up.
- - If you elect to step-up the Protected Income Value under the program, and
on the date you elect to step-up, the charges under the GMIB program have
changed for new purchasers, your program may be subject to the new charge
going forward.
- - A step-up will increase the dollar for dollar limit on the anniversary of
the Issue Date of the Annuity following such step-up.
Impact of Withdrawals on the Protected Income Value -- Cumulative
withdrawals each Annuity Year up to 5% of the Protected Income Value will reduce
the Protected Income Value on a "dollar-for-dollar" basis (the Protected Income
Value is reduced by the actual amount of the withdrawal). Cumulative withdrawals
in any Annuity Year in excess of 5% of the Protected Income Value will reduce
the Protected Income Value proportionately (see the examples of this calculation
below). The 5% annual withdrawal amount is determined on each anniversary of the
Issue Date (or on the Issue Date for the first Annuity Year) and applies to any
withdrawals during the Annuity Year. This means that the amount available for
withdrawals each Annuity Year on a "dollar-for-dollar" basis is adjusted on each
Annuity anniversary to reflect changes in the Protected Income Value during the
prior Annuity Year.
The following examples of dollar-for-dollar and proportional reductions
assume that: 1.) the Issue Date and the effective date of the GMIB program are
October 13, 2005; 2.) an initial Purchase Payment of $250,000; 3.) an initial
Protected Income Value of $250,000; and 4.) a dollar-for-dollar limit of $12,500
(5% of $250,000):
EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
A $10,000 withdrawal is taken on November 13, 2005 (in the first Annuity Year).
No prior withdrawals have been taken. Immediately prior to the withdrawal, the
Protected Income Value is $251,038.10 (the initial value accumulated for 31 days
at an annual effective rate of 5%). As the amount withdrawn is less than the
dollar-for-dollar limit:
- - the Protected Income Value is reduced by the amount withdrawn (i.e., by
$10,000, from $251,038.10 to $241,038.10).
- - The remaining dollar-for-dollar limit ("Remaining Limit") for the balance
of the first Annuity Year is also reduced by the amount withdrawn (from
$12,500 to $2,500).
EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
A second $10,000 withdrawal is taken on December 13, 2005 (still within the
first Annuity Year). Immediately before the withdrawal, the Account Value is
$220,000 and the Protected Income Value is $242,006.64. As the amount withdrawn
exceeds the Remaining Limit of $2,500 from Example 1:
- - the Protected Income Value is first reduced by the Remaining Limit (from
$242,006.64 to $239,506.64);
- - The result is then further reduced by the ratio of A to B, where:
- A is the amount withdrawn less the Remaining Limit ($10,000 -
$2,500, or $7,500).
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
- B is the Account Value less the Remaining Limit ($220,000 - $2,500,
or $217,500).
The resulting Protected Income Value is: $239,506.64 * (1 - $7,500 /
$217,500), or $231,247.79.
- - The Remaining Limit is set to zero (0) for the balance of the first
Annuity Year.
EXAMPLE 3. RESET OF THE DOLLAR-FOR-DOLLAR LIMIT
A $10,000 withdrawal is made on the first anniversary of the Issue Date, October
13, 2006 (second Annuity Year). Prior to the withdrawal, the Protected Income
Value is $240,838.37. The Remaining Limit is reset to 5% of this amount, or
$12,041.92. As the amount withdrawn is less than the dollar-for-dollar limit:
- - the Protected Income Value is reduced by the amount withdrawn (i.e.,
reduced by $10,000, from $240,838.37 to $230,838.37).
- - The Remaining Limit for the balance of the second Annuity Year is also
reduced by the amount withdrawn (from $12,041.92 to $2,041.92).
KEY FEATURE -- GMIB ANNUITY PAYMENTS
You can elect to apply the Protected Income Value to one of the available GMIB
Annuity Payment Options on any anniversary date following the initial waiting
period, or any subsequent waiting period established upon your election to
step-up the Protected Income Value. Once you have completed the waiting period,
you will have a 30-day period each year, prior to the Annuity anniversary,
during which you may elect to begin receiving annuity payments under one of the
available GMIB Annuity Payment Options. You must elect one of the GMIB Annuity
Payment Options by the anniversary of the Annuity's Issue Date on or immediately
following the Annuitant's 95th birthday, except for Annuities used as a funding
vehicle for an IRA, SEP IRA or 403(b), in which case you must elect one of the
GMIB Annuity Payment Options by the anniversary of the Annuity's Issue Date on
or immediately following the Annuitant's 92nd birthday.
The amount of each GMIB Annuity Payment will be determined based on the
age and, where permitted by law, sex of the Annuitant by applying the Protected
Income Value (net of any applicable tax charge that may be due) to the GMIB
Annuity Payment Option you choose. We use special annuity purchase rates to
calculate the amount of each payment due under the GMIB Annuity Payment Options.
These special rates for the GMIB Annuity Payment Options are calculated using an
assumed interest rate factor that provides for lower growth in the value applied
to produce annuity payments than if you elected an annuity payment option that
is not part of the GMIB program. These special rates also are calculated using
other factors such as "age setbacks" (use of an age lower than the Annuitant's
actual age) that result in lower payments than would result if you elected an
annuity payment option that is not part of the GMIB program. Use of an age
setback entails a longer assumed life for the Annuitant which in turn results in
lower annuity payments.
ON THE DATE THAT YOU ELECT TO BEGIN RECEIVING GMIB ANNUITY PAYMENTS, WE
GUARANTEE THAT YOUR PAYMENTS WILL BE CALCULATED BASED ON YOUR ACCOUNT VALUE AND
OUR THEN CURRENT ANNUITY PURCHASE RATES IF THE PAYMENT AMOUNT CALCULATED ON THIS
BASIS WOULD BE HIGHER THAN IT WOULD BE BASED ON THE PROTECTED INCOME VALUE AND
THE SPECIAL GMIB ANNUITY PURCHASE RATES.
GMIB ANNUITY PAYMENT OPTION 1 -- PAYMENTS FOR LIFE WITH A CERTAIN PERIOD
Under this option, monthly annuity payments will be made until the death of the
Annuitant. If the Annuitant dies before having received 120 monthly annuity
payments, the remainder of the 120 monthly annuity payments will be made to the
Beneficiary.
GMIB ANNUITY PAYMENT OPTION 2 -- PAYMENTS FOR JOINT LIVES WITH A CERTAIN PERIOD
Under this option, monthly annuity payments will be made until the death of both
the Annuitant and the Joint Annuitant. If the Annuitant and the Joint Annuitant
die before having received 120 monthly annuity payments, the remainder of the
120 monthly annuity payments will be made to the Beneficiary.
- - If the Annuitant dies first, we will continue to make payments until the
later of the death of the Joint Annuitant and the end of the period
certain. However, if the Joint Annuitant is still receiving annuity
payments following the end of the certain period, we will reduce the
amount of each subsequent payment to 50% of the original payment amount.
- - If the Joint Annuitant dies first, we will continue to make payments until
the later of the death of the Annuitant and the end of the period certain.
You cannot withdraw your Account Value or the Protected Income Value under
either GMIB Annuity Payment Option once annuity payments have begun. We may make
other payout frequencies available, such as quarterly, semi-annually or
annually.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
OTHER IMPORTANT CONSIDERATIONS
- - YOU SHOULD NOTE THAT GMIB IS DESIGNED TO PROVIDE A TYPE OF INSURANCE THAT
SERVES AS A SAFETY NET ONLY IN THE EVENT YOUR ACCOUNT VALUE DECLINES
SIGNIFICANTLY DUE TO NEGATIVE INVESTMENT PERFORMANCE. IF YOUR CONTRACT
VALUE IS NOT SIGNIFICANTLY AFFECTED BY NEGATIVE INVESTMENT PERFORMANCE, IT
IS UNLIKELY THAT THE PURCHASE OF THE GMIB WILL RESULT IN YOUR RECEIVING
LARGER ANNUITY PAYMENTS THAN IF YOU HAD NOT PURCHASED GMIB. This is
because the assumptions that we use in computing the GMIB, such as the
annuity purchase rates, (which include assumptions as to age-setbacks and
assumed interest rates), are more conservative than the assumptions that
we use in computing annuity payout options outside of GMIB. Therefore, you
may generate higher income payments if you were to annuitize a lower
Account Value at the current annuity purchase rates, than if you were to
annuitize under the GMIB with a higher Protected Value than your Account
Value but, at the annuity purchase rates guaranteed under the GMIB. The
GMIB program does not directly affect the Annuity's Account Value,
Surrender Value or the amount payable under either the basic death benefit
provision of the Annuity or any optional death benefit provision. If you
surrender your Annuity, you will receive the current Surrender Value, not
the Protected Income Value. The Protected Income Value is only applicable
if you elect to begin receiving annuity payments under one of the GMIB
annuity options after the waiting period.
- - The Annuity offers other annuity payment options that you can elect which
do not impose an additional charge, but which do not offer to guarantee a
minimum value on which to make annuity payments.
- - Where allowed by law, we reserve the right to limit subsequent purchase
payments if we determine, at our sole discretion, that based on the timing
of your Purchase Payments and withdrawals, your Protected Income Value is
increasing in ways we did not intend. In determining whether to limit
Purchase Payments, we will look at Purchase Payments which are
disproportionately larger than your initial Purchase Payment and other
actions that may artificially increase the Protected Income Value.
- - We currently limit the variable investment options in which you may
allocate Account Value if you participate in this program. We reserve the
right to transfer any Account Value in a prohibited investment option to
an eligible investment option. Should we prohibit access to any investment
option, any transfers required to move Account Value to eligible
investment options will not be counted in determining the number of free
transfers during an Annuity Year. We may also require that you allocate
your Account Value according to an asset allocation model.
- - If you change the Annuitant after the effective date of the GMIB program,
the period of time during which we will apply the 5% annual growth rate
may be changed based on the age of the new Annuitant. If the new Annuitant
would not be eligible to elect the GMIB program based on his or her age at
the time of the change, then the GMIB program will terminate.
- - Annuity payments made under the GMIB program are subject to the same tax
treatment as any other annuity payment.
- - At the time you elect to begin receiving annuity payments under the GMIB
program or under any other annuity payment option we make available, the
protection provided by the Annuity's basic death benefit or any optional
death benefit provision you elected will no longer apply.
ELECTION OF THE PROGRAM
Currently, the GMIB program can only be elected at the time that you purchase
your Annuity. The Annuitant must be age 75 or less as of the effective date of
the GMIB program. In the future, we may offer existing Annuity Owners the option
to elect the GMIB program after the Issue Date of their Annuity, subject to our
eligibility rules and restrictions. If you elect the GMIB program after the
Issue Date of your Annuity, the program will be effective as of the date of
election. Your Account Value as of the that date will be used to calculate the
Protected Income Value as of the effective date of the program.
TERMINATION OF THE PROGRAM
The GMIB program cannot be terminated by the Owner once elected. The GMIB
program automatically terminates as of the date the Annuity is fully
surrendered, on the date the death benefit is payable to your Beneficiary
(unless your surviving spouse elects to continue the Annuity), or on the date
that your Account Value is transferred to begin making annuity payments. The
GMIB program may also be terminated if you designate a new Annuitant who would
not be eligible to elect the GMIB program based on his or her age at the time of
the change.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
Upon termination of the GMIB program we will deduct the charge from your
Account Value for the portion of the Annuity Year since the prior anniversary of
the Annuity's Issue Date (or the Issue Date if in the first Annuity Year).
CHARGES UNDER THE PROGRAM
Currently, we deduct a charge equal to 0.50% per year of the average Protected
Income Value for the period the charge applies. Because the charge is calculated
based on the average Protected Income Value, it does not increase or decrease
based on changes to the Annuity's Account Value due to market performance. The
dollar amount you pay each year will increase in any year the Protected Income
Value increases, and it will decrease in any year the Protected Income Value
decreases due to withdrawal, irrespective of whether your Account Value
increases or decreases.
The charge is deducted annually in arrears each Annuity Year on the
anniversary of the Issue Date of the Annuity. We deduct the amount of the charge
pro-rata from the Account Value allocated to the variable investment options and
the Fixed Allocations. No MVA will apply to Account Value deducted from a Fixed
Allocation. If you surrender your Annuity, begin receiving annuity payments
under the GMIB program or any other annuity payment option we make available
during an Annuity Year, or the GMIB program terminates, we will deduct the
charge for the portion of the Annuity Year since the prior anniversary of the
Annuity's Issue Date (or the Issue Date if in the first Annuity Year).
No charge applies after the Annuity Date.
LIFETIME FIVE INCOME BENEFIT (LIFETIME FIVE)
THE LIFETIME FIVE INCOME BENEFIT PROGRAM DESCRIBED BELOW IS ONLY BEING OFFERED
IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY APPROVAL AND WILL BE
OFFERED SUBSEQUENTLY IN OTHER JURISDICTIONS WHEN WE RECEIVE REGULATORY APPROVAL
IN THOSE JURISDICTIONS. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN
JURISDICTIONS ONCE APPROVED. CURRENTLY, LIFETIME FIVE CAN BE ELECTED ONLY ONCE
EACH ANNUITY YEAR, AND ONLY WHERE THE ANNUITANT AND THE OWNER ARE THE SAME
PERSON OR, IF THE ANNUITY OWNER IS AN ENTITY, WHERE THERE IS ONLY ONE ANNUITANT.
WE RESERVE THE RIGHT TO LIMIT THE ELECTION FREQUENCY IN THE FUTURE. BEFORE
MAKING ANY SUCH CHANGE TO THE ELECTION FREQUENCY, WE WILL PROVIDE PRIOR NOTICE
TO OWNERS WHO HAVE AN EFFECTIVE LIFETIME FIVE INCOME BENEFIT. THE ANNUITANT MUST
BE AT LEAST 45 YEARS OLD WHEN THE PROGRAM IS ELECTED. THE LIFETIME FIVE INCOME
BENEFIT PROGRAM IS NOT AVAILABLE IF YOU ELECT THE GUARANTEED RETURN OPTION,
GUARANTEED RETURN OPTION PLUS, GUARANTEED MINIMUM WITHDRAWAL BENEFIT OR THE
GUARANTEED MINIMUM INCOME BENEFIT RIDER. AS LONG AS YOUR LIFETIME FIVE INCOME
BENEFIT IS IN EFFECT, YOU MUST ALLOCATE YOUR ACCOUNT VALUE IN ACCORDANCE WITH AN
ELIGIBLE MODEL UNDER OUR ASSET ALLOCATION PROGRAMS, WHICH ARE GENERALLY
DESCRIBED IN THE "ARE ANY ASSET ALLOCATION PROGRAMS AVAILABLE?" SECTION ABOVE.
FOR FURTHER INFORMATION ON ASSET ALLOCATION PROGRAMS, PLEASE CONSULT WITH YOUR
INVESTMENT PROFESSIONAL OR CALL 1-800-752-6342.
We offer a program that guarantees your ability to withdraw amounts equal
to a percentage of an initial principal value (called the "Protected Withdrawal
Value"), regardless of
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
the impact of market performance on your Account Value, subject to our program
rules regarding the timing and amount of withdrawals. There are two options --
one is designed to provide an annual withdrawal amount for life (the "Life
Income Benefit") and the other is designed to provide a greater annual
withdrawal amount as long as there is Protected Withdrawal Value (adjusted as
described below) (the "Withdrawal Benefit"). If there is no Protected Withdrawal
Value, the withdrawal benefit will be zero. You do not choose between these two
options; each option will continue to be available as long as the Annuity has an
Account Value and the Lifetime Five is in effect. Certain benefits under
Lifetime Five may remain in effect even if the Account Value of the Annuity is
zero. The program may be appropriate if you intend to make periodic withdrawals
from your Annuity and wish to ensure that market performance will not affect
your ability to receive annual payments. You are not required to make
withdrawals as part of the program -- the guarantees are not lost if you
withdraw less than the maximum allowable amount each year under the rules of the
program.
KEY FEATURE -- PROTECTED WITHDRAWAL VALUE
The Protected Withdrawal Value is initially used to determine the amount of each
initial annual payment under the Life Income Benefit and the Withdrawal Benefit.
The initial Protected Withdrawal Value is determined as of the date you make
your first withdrawal under the Annuity following your election of Lifetime
Five. The initial Protected Withdrawal Value is equal to the greater of (A) the
Account Value on the date you elect Lifetime Five, plus any additional Purchase
Payments each growing at 5% per year from the date of your election of the
program, or application of the Purchase Payment to your Annuity, as applicable,
until the date of your first withdrawal or the 10th anniversary of the benefit
effective date, if earlier (B) the Account Value as of the date of the first
withdrawal from your Annuity, prior to the withdrawal, and (C) the highest
Account Value on each Annuity anniversary prior to the first withdrawal or on
the first 10 Annuity anniversaries if earlier than the date of your first
withdrawal after the benefit effective date. Each value is increased by the
amount of any subsequent Purchase Payments.
- - If you elect the Lifetime Five program at the time you purchase your
Annuity, the Account Value will be your initial Purchase Payment.
- - For existing Owners who are electing the Lifetime Five benefit, the
Account Value on the date of your election of the Lifetime Five program
will be used to determine the initial Protected Withdrawal Value.
- - If you make additional Purchase Payments after your first withdrawal, the
Protected Withdrawal Value will be increased by the amount of each
additional Purchase Payment.
You may elect to step-up your Protected Withdrawal Value if, due to
positive market performance, your Account Value is greater than the Protected
Withdrawal Value. You are eligible to step-up the Protected Withdrawal Value on
or after the 5th anniversary of the first withdrawal under the Lifetime Five
program. The Protected Withdrawal Value can be stepped up again on or after the
5th anniversary following the preceding step-up. If you elect to step-up the
Protected Withdrawal Value under the program, and on the date you elect to
step-up, the charges under the Lifetime Five program have changed for new
purchasers, your program may be subject to the new charge going forward.
Upon election of the step-up, we increase the Protected Withdrawal Value
to be equal to the then current Account Value. For example, assume your initial
Protected Withdrawal Value was $100,000 and you have made cumulative withdrawals
of $40,000, reducing the Protected Withdrawal Value to $60,000. On the date you
are eligible to step-up the Protected Withdrawal Value, your Account Value is
equal to $75,000. You could elect to step-up the Protected Withdrawal Value to
$75,000 on the date you are eligible. If your current Annual Income Amount and
Annual Withdrawal Amount are less than they would be if we did not reflect the
step-up in Protected Withdrawal Value, then we will increase these amounts to
reflect the step-up as described below.
The Protected Withdrawal Value is reduced each time a withdrawal is made
on a dollar-for-dollar basis up to 7% per Annuity Year of the Protected
Withdrawal Value and on the greater of a dollar-for-dollar basis or a pro rata
basis for withdrawals in an Annuity Year in excess of that amount until the
Protected Withdrawal Value is reduced to zero. At that point the Annual
Withdrawal Amount will be zero until such time (if any) as the Annuity reflects
a Protected Withdrawal Value (for example, due to a step-up or additional
Purchase Payments being made into the Annuity).
KEY FEATURE -- ANNUAL INCOME AMOUNT UNDER THE LIFE INCOME BENEFIT
The initial Annual Income Amount is equal to 5% of the initial Protected
Withdrawal Value. Under the Lifetime Five program, if your cumulative
withdrawals in an Annuity Year are less than
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
or equal to the Annual Income Amount, they will not reduce your Annual Income
Amount in subsequent Annuity Years. If your cumulative withdrawals are in excess
of the Annual Income Amount ("Excess Income"), your Annual Income Amount in
subsequent years will be reduced (except with regard to required minimum
distributions) by the result of the ratio of the Excess Income to the Account
Value immediately prior to such withdrawal (see examples of this calculation
below). Reductions include the actual amount of the withdrawal. A withdrawal can
be considered Excess Income under the Life Income Benefit even though it does
not exceed the Annual Withdrawal Amount under the Withdrawal Benefit. When you
elect a step-up, your Annual Income Amount increases to equal 5% of your Account
Value after the step-up if such amount is greater than your Annual Income
Amount. Your Annual Income Amount also increases if you make additional Purchase
Payments. The amount of the increase is equal to 5% of any additional Purchase
Payments. Any increase will be added to your Annual Income Amount beginning on
the day that the step-up is effective or the Purchase Payment is made. A
determination of whether you have exceeded your Annual Income Amount is made at
the time of each withdrawal; therefore a subsequent increase in the Annual
Income Amount will not offset the effect of a withdrawal that exceeded the
Annual Income Amount at the time the withdrawal was made.
KEY FEATURE -- ANNUAL WITHDRAWAL AMOUNT UNDER THE WITHDRAWAL BENEFIT
The initial Annual Withdrawal Amount is equal to 7% of the initial Protected
Withdrawal Value. Under the Lifetime Five program, if your cumulative
withdrawals each Annuity Year are less than or equal to the Annual Withdrawal
Amount, your Protected Withdrawal Value will be reduced on a dollar-for-dollar
basis. If your cumulative withdrawals are in excess of the Annual Withdrawal
Amount ("Excess Withdrawal"), your Annual Withdrawal Amount will be reduced
(except with regard to required minimum distributions) by the result of the
ratio of the Excess Withdrawal to the Account Value immediately prior to such
withdrawal (see the examples of this calculation below). Reductions include the
actual amount of the withdrawal. When you elect a step-up, your Annual
Withdrawal Amount increases to equal 7% of your Account Value after the step-up
if such amount is greater than your Annual Withdrawal Amount. Your Annual
Withdrawal Amount also increases if you make additional Purchase Payments. The
amount of the increase is equal to 7% of any additional Purchase Payments. A
determination of whether you have exceeded your Annual Withdrawal Amount is made
at the time of each withdrawal; therefore, a subsequent increase in the Annual
Withdrawal Amount will not offset the effect of a withdrawal that exceeded the
Annual Withdrawal Amount at the time the withdrawal was made.
The Lifetime Five program does not affect your ability to make withdrawals
under your Annuity or limit your ability to request withdrawals that exceed the
Annual Income Amount and the Annual Withdrawal Amount. You are not required to
withdraw all or any portion of the Annual Withdrawal Amount or Annual Income
Amount in each Annuity Year.
- If, cumulatively, you withdraw an amount less than the Annual
Withdrawal Amount under the Withdrawal Benefit in any Annuity Year,
you cannot carry-over the unused portion of the Annual Withdrawal
Amount to subsequent Annuity Years. However, because the Protected
Withdrawal Value is only reduced by the actual amount of withdrawals
you make under these circumstances, any unused Annual Withdrawal
Amount may extend the period of time until the remaining Protected
Withdrawal Value is reduced to zero.
- If, cumulatively, you withdraw an amount less than the Annual Income
Amount under the Life Income Benefit in any Annuity Year, you cannot
carry-over the unused portion of the Annual Income Amount to
subsequent Annuity Years. However, because the Protected Withdrawal
Value is only reduced by the actual amount of withdrawals you make
under these circumstances, any unused Annual Income Amount may
extend the period of time until the remaining Protected Withdrawal
Value is reduced to zero.
The following examples of dollar-for-dollar and proportional reductions
and the step-up of the Protected Withdrawal Value, Annual Withdrawal Amount and
Annual Income Amount assume: 1.) the Issue Date and the Effective Date of the
Lifetime Five program are February 1, 2005; 2.) an initial Purchase Payment of
$250,000; 3.) the Account Value on February 1, 2006 is equal to $265,000; 4.)
the first withdrawal occurs on March 1, 2006 when the Account Value is equal to
$263,000; and 5.) the Account Value on March 1, 2011 is equal to $240,000.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
The initial Protected Withdrawal Value is calculated as the greatest of
(a), (b) and (c):
(a) Purchase payment accumulated at 5% per year from February 1, 2005 until
March 1, 2006 (393 days) = $250,000 * 1.05(393/365) = $263,484.33
(b) Account Value on March 1, 2006 (the date of the first withdrawal) =
$263,000
(c) Account Value on February 1, 2006 (the first Annuity Anniversary) =
$265,000
Therefore, the initial Protected Withdrawal Value is equal to $265,000. The
Annual Withdrawal Amount is equal to $18,550 under the Withdrawal Benefit (7% of
$265,000). The Annual Income Amount is equal to $13,250 under the Life Income
Benefit (5% of $265,000).
EXAMPLE 1. DOLLAR-FOR-DOLLAR REDUCTION
If $10,000 was withdrawn (less than both the Annual Income Amount and the Annual
Withdrawal Amount) on March 1, 2006, then the following values would result:
- - Remaining Annual Withdrawal Amount for current Annuity Year = $18,550 -
$10,000 = $8,550
Annual Withdrawal Amount for future Annuity Years remains at $18,550
- - Remaining Annual Income Amount for current Annuity Year = $13,250 -
$10,000 = $3,250
Annual Income Amount for future Annuity Years remains at $13,250
- - Protected Withdrawal Value is reduced by $10,000 from $265,000 to $255,000
EXAMPLE 2. DOLLAR-FOR-DOLLAR AND PROPORTIONAL REDUCTIONS
(a) If $15,000 was withdrawn (more than the Annual Income Amount but
less than the Annual Withdrawal Amount) on March 1, 2006, then the
following values would result:
- - Remaining Annual Withdrawal Amount for current Annuity Year = $18,550 -
$15,000 = $3,550
Annual Withdrawal Amount for future Annuity Years remains at $18,550
- - Remaining Annual Income Amount for current Annuity Year = $0
Excess of withdrawal over the Annual Income Amount ($15,000 - $13,250 =
$1,750) reduces Annual Income Amount for future Annuity Years.
- - Reduction to Annual Income Amount = Excess Income/ Account Value before
Excess Income * Annual Income Amount = $1,750 / ($263,000 - $13,250) *
$13,250 = $93
Annual Income Amount for future Annuity Years = $13,250 - $93 = $13,157
- - Protected Withdrawal Value is reduced by $15,000 from $265,000 to $250,000
(b) If $25,000 was withdrawn (more than both the Annual Income Amount
and the Annual Withdrawal Amount) on March 1, 2006, then the
following values would result:
- - Remaining Annual Withdrawal Amount for current Annuity Year = $0 Excess of
withdrawal over the Annual Withdrawal
Amount ($25,000 - $18,550 = $6,450) reduces Annual Withdrawal Amount for
future Annuity Years.
- - Reduction to Annual Withdrawal Amount = Excess Withdrawal/Account Value
before Excess Withdrawal * Annual Withdrawal Amount = $6,450 / ($263,000 *
$18,550) - $18,550 = $489
Annual Withdrawal Amount for future Annuity Years = $18,550 - $489 =
$18,061
- - Remaining Annual Income Amount for current Annuity Year = $0
Excess of withdrawal over the Annual Income Amount ($25,000 - $13,250 =
$11,750) reduces Annual Income Amount for future Annuity Years.
- - Reduction to Annual Income Amount = Excess Income / Account Value before
Excess Income * Annual Income Amount = $11,750 / ($263,000 - $13,250) *
$13,250 = $623
Annual Income Amount for future Annuity Years = $13,250 - $623 = $12,627
- - Protected Withdrawal Value is first reduced by the Annual Withdrawal
Amount ($18,550) from $265,000 to $246,450. It is further reduced by the
greater of a dollar-for-dollar reduction or a proportional reduction.
Dollar-for-dollar reduction = $25,000 - $18,550 = $6,450
- - Proportional reduction = Excess Withdrawal / Account Value before Excess
Withdrawal
- - Protected Withdrawal Value = $6,450 / ($263,000 - $18,550) * $246,450 =
$6,503
Protected Withdrawal Value = $246,450 - max {$6,450, $6,503} = $239,947
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Living Benefit Programs continued
EXAMPLE 3. STEP-UP OF THE PROTECTED WITHDRAWAL VALUE
If the Annual Income Amount ($13,250) is withdrawn each year starting on March
1, 2006 for a period of 5 years, the Protected Withdrawal Value on March 1, 2011
would be reduced to $198,750 {$265,000 - ($13,250 * 5)}. If a step-up is elected
on March 1, 2011, then the following values would result:
- - Protected Withdrawal Value = Account Value on March 1, 2011 = $240,000
- - Annual Income Amount is equal to the greater of the current Annual Income
Amount or 5% of the stepped up Protected Withdrawal Value. Current Annual
Income Amount is $13,250. 5% of the stepped-up Protected Withdrawal Value
is 5% of $240,000, which is $12,000. Therefore, the Annual Income Amount
remains $13,250.
- - Annual Withdrawal Amount is equal to the greater of the current Annual
Withdrawal Amount or 7% of the stepped up Protected Withdrawal Value.
Current Annual Withdrawal Amount is $18,550. 7% of the stepped-up
Protected Withdrawal Value is 7% of $240,000, which is $16,800. Therefore
the Annual Withdrawal Amount remains $18,550.
BENEFITS UNDER THE LIFETIME FIVE PROGRAM
- - If your Account Value is equal to zero, and the cumulative withdrawals in
the current Annuity Year are greater than the Annual Withdrawal Amount,
the Lifetime Five program will terminate. To the extent that your Account
Value was reduced to zero as a result of cumulative withdrawals that are
equal to or less than the Annual Income Amount and amounts are still
payable under both the Life Income Benefit and the Withdrawal Benefit, you
will be given the choice of receiving the payments under the Life Income
Benefit or under the Withdrawal Benefit. Once you make this election we
will make an additional payment for that Annuity Year equal to either the
remaining Annual Income Amount or Annual Withdrawal Amount for the Annuity
Year, if any, depending on the option you choose. In subsequent Annuity
Years we make payments that equal either the Annual Income Amount or the
Annual Withdrawal Amount as described in this Prospectus. You will not be
able to change the option after your election and no further Purchase
Payments will be accepted under your Annuity. If you do not make an
election, we will pay you annually under the Life Income Benefit. To the
extent that cumulative withdrawals in the current Annuity Year that
reduced your Account Value to zero are more than the Annual Income Amount
but less than or equal to the Annual Withdrawal Amount and amounts are
still payable under the Withdrawal Benefit, you will receive the payments
under the Withdrawal Benefit. In the year of a withdrawal that reduced
your Account Value to zero, we will make an additional payment to equal
any remaining Annual Withdrawal Amount and make payments equal to the
Annual Withdrawal Amount in each subsequent year (until the Protected
Withdrawal Value is depleted). Once your Account Value equals zero no
further Purchase Payments will be accepted under your Annuity.
- - If annuity payments are to begin under the terms of your Annuity or if you
decide to begin receiving annuity payments and there is any Annual Income
Amount due in subsequent Annuity Years or any remaining Protected
Withdrawal Value, you can elect one of the following three options:
(1) apply your Account Value to any annuity option available; or
(2) request that, as of the date annuity payments are to begin, we make
annuity payments each year equal to the Annual Income Amount. We make such
annuity payments until the Annuitant's death; or
(3) request that, as of the date annuity payments are to begin, we pay out any
remaining Protected Withdrawal Value as annuity payments. Each year such
annuity payments will equal the Annual Withdrawal Amount or the remaining
Protected Withdrawal Value if less. We make such annuity payments until
the earlier of the Annuitant's death or the date the Protected Withdrawal
Value is depleted.
We must receive your request in a form acceptable to us at our office.
- - In the absence of an election when mandatory annuity payments are to
begin, we will make annual annuity payments as a single life fixed annuity
with five payments certain using the greater of the annuity rates then
currently available or the annuity rates guaranteed in your Annuity. The
amount that will be applied to provide such annuity payments will be the
greater of:
(1) the present value of future Annual Income Amount payments. Such present
value will be calculated using the greater of the single life fixed
annuity rates then currently available or the single life fixed annuity
rates guaranteed in your Annuity; and
(2) the Account Value.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
- - If no withdrawal was ever taken, we will determine a Pro- tected
Withdrawal Value and calculate an Annual Income Amount and an Annual
Withdrawal Amount as if you made your first withdrawal on the date the
annuity payments are to begin.
OTHER IMPORTANT CONSIDERATIONS
- - Withdrawals under the Lifetime Five program are subject to all of the
terms and conditions of the Annuity.
- - Withdrawals made while the Lifetime Five program is in effect will be
treated, for tax purposes, in the same way as any other withdrawals under
the Annuity. The Lifetime Five program does not directly affect the
Annuity's Account Value or Surrender Value, but any withdrawal will
decrease the Account Value by the amount of the withdrawal. If you
surrender your Annuity, you will receive the current Surrender Value, not
the Protected Withdrawal Value.
- - You can make withdrawals from your Annuity while your Account Value is
greater than zero without purchasing the Lifetime Five program. The
Lifetime Five program provides a guarantee that if your Account Value
declines due to market performance, you will be able to receive your
Protected Withdrawal Value or Annual Income Amount in the form of periodic
benefit payments.
- - You must allocate your Account Value in accordance with an eligible model
under an available asset allocation program or in accordance with other
options that we may permit in order to elect and maintain the Lifetime
Five program. Asset allocation programs are described generally in the
"Are Any Asset Allocation Programs Available?" section above. For further
information on asset allocation programs, please consult with your
Investment Professional or call 1-800-752-6342.
ELECTION OF THE PROGRAM
The Lifetime Five program can be elected at the time that you purchase your
Annuity. We also offer existing Owners the option to elect the Lifetime Five
program after the Issue Date of their Annuity, subject to our eligibility rules
and restrictions. Your Account Value as the date of election will be used as a
basis to calculate the initial Protected Withdrawal Value, the initial Protected
Annual Withdrawal Amount, and the Annual Income Amount.
TERMINATION OF THE PROGRAM
The program terminates automatically when your Protected Withdrawal Value and
Annual Income Amount equals zero. You may terminate the program at any time by
notifying us. If you terminate the program, any guarantee provided by the
benefit will terminate as of the date the termination is effective. The program
terminates upon your surrender of the Annuity, upon the death of the Annuitant
(but your surviving spouse may elect a new Lifetime Five if your spouse elects
the spousal continuance option and your spouse would then be eligible to elect
the benefit if he or she was a new purchaser), upon a change in ownership of the
Annuity that changes the tax identification number of the Owner, upon change in
the Annuitant or upon your election to begin receiving annuity payments.
The charge for the Lifetime Five program will no longer be deducted from
your Account Value upon termination of the program.
ADDITIONAL TAX CONSIDERATIONS FOR QUALIFIED CONTRACTS If you purchase an Annuity
as an investment vehicle for "qualified" investments, including an IRA, SEP-IRA,
or Tax Sheltered Annuity (or 403(b)), the minimum distribution rules under the
Code require that you begin receiving periodic amounts from your Annuity
beginning after age 701/2. The amount required under the Code may exceed the
Annual Withdrawal Amount and the Annual Income Amount, which will cause us to
increase the Annual Income Amount and the Annual Withdrawal Amount in any
Annuity Year that required minimum distributions due from your Annuity are
greater than such amounts. Any such payments will reduce your Protected
Withdrawal Value. In addition, the amount and duration of payments under the
annuity payment and death benefit provisions may be adjusted so that the
payments do not trigger any penalty or excise taxes due to tax considerations
such as minimum distribution requirements.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Death Benefit
WHAT TRIGGERS THE PAYMENT OF A DEATH BENEFIT?
The Annuity provides a Death Benefit during its accumulation period. IF THE
ANNUITY IS OWNED BY ONE OR MORE NATURAL PERSONS, THE DEATH BENEFIT IS PAYABLE
UPON THE FIRST DEATH OF AN OWNER. IF THE ANNUITY IS OWNED BY AN ENTITY, THE
DEATH BENEFIT IS PAYABLE UPON THE ANNUITANT'S DEATH, IF THERE IS NO CONTINGENT
ANNUITANT. If a Contingent Annuitant was designated before the Annuitant's death
and the Annuitant dies, then the Contingent Annuitant becomes the Annuitant and
a Death Benefit will not be paid at that time. The person upon whose death the
Death Benefit is paid is referred to below as the "decedent."
BASIC DEATH BENEFIT
The Annuity provides a basic Death Benefit at no additional charge. The
Insurance Charge we deduct daily from your Account Value allocated to the
Sub-accounts is used, in part, to pay us for the risk we assume in providing the
basic Death Benefit guarantee under the Annuity. The Annuity also offers three
different optional Death Benefits that can be purchased for an additional
charge. The additional charge is deducted to compensate American Skandia for
providing increased insurance protection under the optional Death Benefits.
NOTWITHSTANDING THE ADDITIONAL PROTECTION PROVIDED UNDER THE OPTIONAL DEATH
BENEFITS, THE ADDITIONAL COST HAS THE IMPACT OF REDUCING THE NET PERFORMANCE OF
THE INVESTMENT OPTIONS.
The BASIC DEATH BENEFIT depends on the decedent's age on the date of
death:
If death occurs before the decedent's age 85: The Death Benefit is the
greater of:
- - The sum of all Purchase Payments less the sum of all withdrawals; and
- - The sum of your Account Value in the variable investment options and your
Interim Value in the Fixed Allocations.
If death occurs when the decedent is age 85 or older:
The Death Benefit is your Account Value.
OPTIONAL DEATH BENEFITS
Three optional Death Benefits are offered for purchase with your Annuity to
provide an enhanced level of protection for your beneficiaries.
CURRENTLY, THESE BENEFITS ARE ONLY OFFERED IN THOSE JURISDICTIONS WHERE WE HAVE
RECEIVED REGULATORY APPROVAL AND MUST BE ELECTED AT THE TIME THAT YOU PURCHASE
YOUR ANNUITY. WE MAY, AT A LATER DATE, ALLOW EXISTING ANNUITY OWNERS TO PURCHASE
AN OPTIONAL DEATH BENEFIT SUBJECT TO OUR RULES AND ANY CHANGES OR RESTRICTIONS
IN THE BENEFITS. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN JURISDICTIONS
ONCE APPROVED AND IF YOU PURCHASE YOUR ANNUITY AS PART OF AN EXCHANGE,
REPLACEMENT OR TRANSFER, IN WHOLE OR IN PART, FROM ANY OTHER ANNUITY WE ISSUE.
THE "COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE" DEATH BENEFIT MAY
ONLY BE ELECTED INDIVIDUALLY, AND CANNOT BE ELECTED IN COMBINATION WITH ANY
OTHER OPTIONAL DEATH BENEFIT.
ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
The Enhanced Beneficiary Protection Optional Death Benefit can provide
additional amounts to your Beneficiary that may be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death. Whether this benefit is appropriate for you may depend on your particular
circumstances, including other financial resources that may be available to your
Beneficiary to pay taxes on your Annuity should you die during the accumulation
period. No benefit is payable if death occurs on or after the Annuity Date.
THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT PROVIDES A
BENEFIT THAT IS PAYABLE IN ADDITION TO THE BASIC DEATH BENEFIT. If the Annuity
has one Owner, the Owner must be age 75 or less at the time the benefit is
purchased. If the Annuity has joint Owners, the oldest Owner must be age 75 or
less. If the Annuity is owned by an entity, the Annuitant must be age 75 or
less.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
CALCULATION OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the
Death Benefit is calculated as follows:
1. the BASIC DEATH BENEFIT described above;
PLUS
2. 40% of your "GROWTH" under the Annuity, as defined below.
"GROWTH" means the sum of your Account Value in the variable investment
options and your Interim Value in the Fixed Allocations, minus the total of all
Purchase Payments reduced by the sum of all proportional withdrawals.
"PROPORTIONAL WITHDRAWALS" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn.
THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT IS SUBJECT TO A
MAXIMUM OF 100% OF ALL PURCHASE PAYMENTS APPLIED TO THE ANNUITY AT LEAST 12
MONTHS PRIOR TO THE DEATH OF THE DECEDENT THAT TRIGGERS THE PAYMENT OF THE DEATH
BENEFIT.
THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT DESCRIBED ABOVE IS
CURRENTLY BEING OFFERED IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY
APPROVAL. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN JURISDICTIONS ONCE
APPROVED. THE ENHANCED BENEFICIARY PROTECTION DEATH BENEFIT IS NOT AVAILABLE IF
YOU ELECT THE "COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE" DEATH
BENEFIT. PLEASE SEE APPENDIX F FOR A DESCRIPTION OF THE ENHANCED BENEFICIARY
PROTECTION OPTIONAL DEATH BENEFIT OFFERED BEFORE NOVEMBER 18, 2002 IN THOSE
JURISDICTIONS WHERE WE RECEIVED REGULATORY APPROVAL. PLEASE REFER TO THE SECTION
ENTITLED "TAX CONSIDERATIONS" FOR A DISCUSSION OF SPECIAL TAX CONSIDERATIONS FOR
PURCHASERS OF THIS BENEFIT.
See Appendix B for examples of how the Enhanced Beneficiary Protection
Optional Death Benefit is calculated.
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT ("HAV")
If the Annuity has one Owner, the Owner must be age 79 or less at the time the
Highest Anniversary Value Optional Death Benefit is purchased. If the Annuity
has joint Owners, the oldest Owner must be age 79 or less. If the Annuity is
owned by an entity, the Annuitant must be age 79 or less.
CERTAIN OF THE PORTFOLIOS OFFERED AS SUB-ACCOUNTS UNDER THE ANNUITY ARE
NOT AVAILABLE IF YOU ELECT THE HIGHEST ANNIVERSARY VALUE DEATH BENEFIT. IN
ADDITION, WE RESERVE THE RIGHT TO REQUIRE YOU TO USE CERTAIN ASSET ALLOCATION
MODEL(S) IF YOU ELECT THIS DEATH BENEFIT.
CALCULATION OF HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
The HAV Death Benefit depends on whether death occurs before or after the Death
Benefit Target Date.
If the Owner dies before the Death Benefit Target Date, the Death Benefit
equals the greater of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value as of the Owner's date of death.
If the Owner dies on or after the Death Benefit Target Date, the Death
Benefit equals the greater of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value on the Death Benefit Target Date plus
the sum of all Purchase Payments less the sum of all proportional
withdrawals since the Death Benefit Target Date.
THE AMOUNT DETERMINED BY THIS CALCULATION IS INCREASED BY ANY PURCHASE
PAYMENTS RECEIVED AFTER THE OWNER'S DATE OF DEATH AND DECREASED BY ANY
PROPORTIONAL WITHDRAWALS SINCE SUCH DATE.
THE HIGHEST ANNIVERSARY VALUE DEATH BENEFIT DESCRIBED ABOVE IS CURRENTLY BEING
OFFERED IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY APPROVAL.
CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN JURISDICTIONS ONCE APPROVED. THE
HIGHEST ANNIVERSARY VALUE DEATH BENEFIT IS NOT AVAILABLE IF YOU ELECT THE
"COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE" OR THE "HIGHEST DAILY
VALUE" DEATH BENEFIT. PLEASE SEE APPENDIX D FOR A DESCRIPTION OF THE GUARANTEED
MINIMUM DEATH BENEFIT OFFERED BEFORE NOVEMBER 18, 2002 IN THOSE JURISDICTIONS
WHERE WE RECEIVED REGULATORY APPROVAL.
Please refer to the definition of Death Benefit Target Date below. This
death benefit may not be an appropriate feature where the Owner's age is near
the age specified in the Death Benefit Target Date. This is because the benefit
may not have
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Death Benefit continued
the same potential for growth as it otherwise would, since there will be fewer
contract anniversaries before the death benefit target date is reached. The
death benefit target date under this death benefit is earlier than the death
benefit target date under the Combination 5% Roll-up and Highest Anniversary
Value Death Benefit for Owners who are age 76 or older when the Annuity is
issued, which may result in a lower value on the death benefit, since there will
be fewer contract anniversaries before the death benefit target date is reached.
See Appendix B for examples of how the Highest Anniversary Value Death
Benefit is calculated.
COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
If the Annuity has one Owner, the Owner must be age 79 or less at the time the
Combination 5% Roll-up and HAV Optional Death Benefit is purchased. If the
Annuity has joint Owners, the oldest Owner must be age 79 or less. If the
Annuity is owned by an entity, the Annuitant must be age 79 or less.
CERTAIN OF THE PORTFOLIOS OFFERED AS SUB-ACCOUNTS UNDER THE ANNUITY ARE
NOT AVAILABLE IF YOU ELECT THE COMBINATION 5% ROLL-UP AND HAV DEATH BENEFIT. IN
ADDITION, WE RESERVE THE RIGHT TO REQUIRE YOU TO USE CERTAIN ASSET ALLOCATION
MODEL(S) IF YOU ELECT THIS DEATH BENEFIT.
CALCULATION OF THE COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH
BENEFIT
The Combination 5% Roll-up and HAV Death Benefit equals the greatest of:
1. the basic Death Benefit described above; and
2. the Highest Anniversary Value death benefit described above, and
3. 5% Roll-up described below.
The calculation of the 5% Roll-up depends on whether death occurs before
or after the Death Benefit Target Date.
If the Owner dies before the Death Benefit Target Date the 5% Roll up is
equal to:
- - all Purchase Payments increasing at an annual effective interest rate of
5% starting on the date that each Purchase Payment is made and ending on
the Owner's date of death;
MINUS
- - the sum of all withdrawals, dollar for dollar up to 5% of the death
benefit's value as of the prior contract anniversary (or issue date if the
withdrawal is in the first contract year). Any withdrawals in excess of
the 5% dollar for dollar limit are proportional.
If the Owner dies on or after the Death Benefit Target Date the 5% Roll-up
is equal to:
- - the 5% Roll-up value as of the Death Benefit Target Date increased by
total Purchase Payments made after the Death Benefit Target Date;
MINUS
- - the sum of all withdrawals which reduce the 5% Roll-up proportionally.
PLEASE REFER TO THE DEFINITIONS OF DEATH BENEFIT TARGET DATE BELOW. THIS
DEATH BENEFIT MAY NOT BE AN APPROPRIATE FEATURE WHERE THE OWNER'S AGE IS NEAR
THE AGE SPECIFIED IN THE DEATH BENEFIT TARGET DATE. THIS IS BECAUSE THE BENEFIT
MAY NOT HAVE THE SAME POTENTIAL FOR GROWTH AS IT OTHERWISE WOULD, SINCE THERE
WILL BE FEWER CONTRACT ANNIVERSARIES BEFORE THE DEATH BENEFIT TARGET DATE IS
REACHED.
THE COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT DESCRIBED
ABOVE IS CURRENTLY BEING OFFERED IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED
REGULATORY APPROVAL. CERTAIN TERMS AND CONDITIONS MAY DIFFER BETWEEN
JURISDICTIONS ONCE APPROVED. THE "COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY
VALUE" DEATH BENEFIT IS NOT AVAILABLE IF YOU ELECT ANY OTHER OPTIONAL DEATH
BENEFIT. PLEASE SEE APPENDIX D FOR A DESCRIPTION OF THE GUARANTEED MINIMUM DEATH
BENEFIT OFFERED BEFORE NOVEMBER 18, 2002 IN THOSE JURISDICTIONS WHERE WE
RECEIVED REGULATORY APPROVAL.
See Appendix B for examples of how the Combination 5% Roll-up and Highest
Anniversary Value Death Benefit is calculated.
KEY TERMS USED WITH THE HIGHEST ANNIVERSARY VALUE DEATH BENEFIT AND THE
COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT:
- - The Death Benefit Target Date for the Highest Anniversary Value Death
Benefit is the contract anniversary on or after the 80th birthday of the
current Owner, the oldest of either joint Owner or the Annuitant, if
entity owned.
- - The Death Benefit Target Date for the Combination 5% Roll-up and HAV Death
Benefit is the later of the contract anniversary on or after the 80th
birthday of the current Owner, the oldest of either joint Owner or the
Annuitant,
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
if entity owned, or five years after the Issue Date of the Annuity.
- - The Highest Anniversary Value equals the highest of all previous
"Anniversary Values" less proportional withdrawals since such anniversary
and plus any Purchase Payments since such anniversary.
- - The Anniversary Value is the Account Value as of each anniversary of the
Issue Date of the Annuity. The Anniversary Value on the Issue Date is
equal to your Purchase Payment.
- - Proportional withdrawals are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn.
Proportional withdrawals result in a reduction to the Highest Anniversary
Value or 5% Roll-up value by reducing such value in the same proportion as
the Account Value was reduced by the withdrawal as of the date the
withdrawal occurred. For example, if your Highest Anniversary Value or 5%
Roll-up value is $125,000 and you subsequently withdraw $10,000 at a time
when your Account Value is equal to $100,000 (a 10% reduction), when
calculating the optional Death Benefit we will reduce your Highest
Anniversary Value ($125,000) by 10% or $12,500.
HIGHEST DAILY VALUE DEATH BENEFIT ("HDV")
If the Annuity has one Owner, the Owner must be age 79 or less at the time the
Highest Daily Value Death Benefit is elected. If the Annuity has joint Owners,
the older Owner must be age 79 or less. If there are Joint Owners, death of the
Owner refers to the first to die of the Joint Owners. If the Annuity is owned by
an entity, the Annuitant must be age 79 or less and death of the Owner refers to
the death of the Annuitant.
IF YOU ELECT THIS BENEFIT, YOU MUST ALLOCATE YOUR ACCOUNT VALUE IN ACCORDANCE
WITH AN ELIGIBLE MODEL UNDER AN AVAILABLE ASSET ALLOCATION PROGRAM OR IN
ACCORDANCE WITH OTHER OPTIONS THAT WE MAY PERMIT. Because this benefit, once
elected, may not be terminated, you must keep your Account Value allocated to an
eligible model throughout the life of the Annuity. You may, however, switch from
one eligible model to another eligible model. Our asset allocation programs are
generally described in the "Are Any Asset Allocation Programs Available?"
section above. For further information on asset allocation programs, please
consult with your Investment Professional or call 1-800-752-6342.
The HDV Death Benefit depends on whether death occurs before or after the Death
Benefit Target Date.
If the Owner dies before the Death Benefit Target Date, the Death Benefit equals
the greater of:
1. the basic Death Benefit described above; and
2. the HDV as of the Owner's date of death.
If the Owner dies on or after the Death Benefit Target Date, the Death Benefit
equals the greater of:
1. the basic Death Benefit described above; and
2. the HDV on the Death Benefit Target Date plus the sum of all Purchase
Payments less the sum of all proportional withdrawals since the Death
Benefit Target Date.
The amount determined by this calculation is increased by any Purchase
Payments received after the Owner's date of death and decreased by any
proportional withdrawals since such date.
THE HIGHEST DAILY VALUE DEATH BENEFIT DESCRIBED ABOVE IS CURRENTLY BEING OFFERED
IN THOSE JURISDICTIONS WHERE WE HAVE RECEIVED REGULATORY APPROVAL. CERTAIN TERMS
AND CONDITIONS MAY DIFFER BETWEEN JURISDICTIONS ONCE APPROVED. THE HIGHEST DAILY
VALUE DEATH BENEFIT IS NOT AVAILABLE IF YOU ELECT THE GUARANTEED RETURN OPTION,
GUARANTEED RETURN OPTION PLUS, THE "COMBINATION 5% ROLL-UP AND HIGHEST
ANNIVERSARY VALUE" DEATH BENEFIT, OR THE HIGHEST ANNIVERSARY VALUE DEATH
BENEFIT. PLEASE SEE APPENDIX D FOR A DESCRIPTION OF THE GUARANTEED MINIMUM DEATH
BENEFIT OFFERED BEFORE NOVEMBER 18, 2002 IN THOSE JURISDICTIONS WHERE WE
RECEIVED REGULATORY APPROVAL.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Death Benefit continued
KEY TERMS USED WITH THE HIGHEST DAILY VALUE DEATH BENEFIT:
- - The Death Benefit Target Date for the Highest Daily Value Death Benefit is
the later of the Annuity anniversary on or after the 80th birthday of the
current Owner, or the older of either the joint Owner or the Annuitant, if
entity owned, or five years after the Issue Date of the Annuity.
- - The Highest Daily Value equals the highest of all previous "Daily Values"
less proportional withdrawals since such date and plus any Purchase
Payments since such date.
- - The Daily Value is the Account Value as of the end of each Valuation Day.
The Daily Value on the Issue Date is equal to your Purchase Payment.
- - Proportional withdrawals are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn.
Proportional withdrawals result in a reduction to the Highest Daily Value
by reducing such value in the same proportion as the Account Value was
reduced by the withdrawal as of the date the withdrawal occurred. For
example, if your Highest Daily Value is $125,000 and you subsequently
withdraw $10,000 at a time when your Account Value is equal to $100,000 (a
10% reduction), when calculating the optional Death Benefit we will reduce
your Highest Daily Value ($125,000) by 10% or $12,500.
Please see Appendix B to this Prospectus for a hypothetical example of how
the HDV Death Benefit is calculated.
ANNUITIES WITH JOINT OWNERS
For Annuities with Joint Owners, the Death Benefits are calculated as shown
above except that the age of the oldest of the Joint Owners is used to determine
the Death Benefit Target Date. NOTE: If you and your spouse own the Annuity
jointly, we will pay the Death Benefit to the Beneficiary. If the sole primary
Beneficiary is the surviving spouse, then the surviving spouse can elect to
assume ownership of the Annuity and continue the Annuity instead of receiving
the Death Benefit.
ANNUITIES OWNED BY ENTITIES
For Annuities owned by an entity, the Death Benefits are calculated as shown
above except that the age of the Annuitant is used to determine the Death
Benefit Target Date. Payment of the Death Benefit is based on the death of the
Annuitant (or Contingent Annuitant, if applicable).
CAN I TERMINATE THE OPTIONAL DEATH BENEFITS?
DO THE OPTIONAL DEATH BENEFITS TERMINATE UNDER OTHER CIRCUMSTANCES?
You can terminate the Enhanced Beneficiary Protection Optional Death Benefit and
the Highest Anniversary Value Death Benefit at any time. The "Combination 5%
Roll-up and HAV Death Benefit" and the HDV Death Benefit may not be terminated
once elected. The optional Death Benefits will terminate automatically on the
Annuity Date. We may also terminate any optional Death Benefit if necessary to
comply with our interpretation of the Code and applicable regulations.
WHAT ARE THE CHARGES FOR THE OPTIONAL DEATH BENEFITS?
We deduct a charge equal to 0.25% per year of the average daily net assets of
the Sub-accounts for each of the Highest Anniversary Value Death Benefit and the
Enhanced Beneficiary Protection Death Benefit and 0.50% per year of the average
daily net assets of the Sub-accounts for the "Combination 5% Roll-up and HAV
Death Benefit" and the HDV Death Benefit. We deduct the charge for each of these
benefits to compensate American Skandia for providing increased insurance
protection under the optional Death Benefits.
Please refer to the section entitled "Tax Considerations" for additional
considerations in relation to the optional Death Benefit.
PAYMENT OF DEATH BENEFITS
PAYMENT OF DEATH BENEFIT TO BENEFICIARY
Except in the case of a spousal assumption as described below, in the event of
your death, the death benefit must be distributed:
- - as a lump sum amount at any time within five (5) years of the date of
death; or
- - as a series of annuity payments not extending beyond the life expectancy
of the Beneficiary or over the life of the Beneficiary. Payments under
this option must begin within one year of the date of death.
Unless you have made an election prior to death benefit proceeds becoming
due, a Beneficiary can elect to receive the Death Benefit proceeds as a series
of fixed annuity payments (annuity payment options 1-4) or as a series of
variable annuity payments (annuity payment options 1-3 or 5 and 6). See the
section entitled "What Types of Annuity Options are Available."
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
SPOUSAL BENEFICIARY -- ASSUMPTION OF ANNUITY
You may name your spouse as your Beneficiary. If you and your spouse own the
Annuity jointly, we assume that the sole primary Beneficiary will be the
surviving spouse unless you elect an alternative Beneficiary designation. Unless
you elect an alternative Beneficiary designation, the spouse Beneficiary may
elect to assume ownership of the Annuity instead of taking the Death Benefit
payment. Any Death Benefit (including any optional Death Benefits) that would
have been payable to the Beneficiary will become the new Account Value as of the
date we receive due proof of death and any required proof of a spousal
relationship. As of the date the assumption is effective, the surviving spouse
will have all the rights and benefits that would be available under the Annuity
to a new purchaser of the same attained age. For purposes of determining any
future Death Benefit for the surviving spouse, the new Account Value will be
considered as the initial Purchase Payment. Any additional Purchase Payments
applied after the date the assumption is effective will be subject to all
provisions of the Annuity.
See the section entitled "Managing Your Annuity -- Spousal Contingent
Annuitant" for a discussion of the treatment of a spousal Contingent Annuitant
in the case of the death of the Annuitant in an entity owned Annuity.
QUALIFIED BENEFICIARY CONTINUATION OPTION
The Code provides for alternative death benefit payment options when an Annuity
is used as an IRA, 403(b) or other "qualified investment" that requires Minimum
Distributions. Upon the Owner's death under an IRA, 403(b) or other "qualified
investment", a Beneficiary may generally elect to continue the Annuity and
receive Minimum Distributions under the Annuity instead of receiving the death
benefit in a single payment. The available payment options will depend on
whether the Owner died on or before the date he or she was required to begin
receiving Minimum Distributions under the Code and whether the Beneficiary is
the surviving spouse.
- - If death occurs BEFORE the date Minimum Distributions must begin under the
Code, the Death Benefit can be paid out in either a lump sum, within five
years from the date of death, or over the life or life expectancy of the
designated Beneficiary (as long as payments begin by December 31st of the
year following the year of death). However, if the spouse is the
Beneficiary, the Death Benefit can be paid out over the life or life
expectancy of the spouse with such payments beginning no earlier than
December 31st of the year following the year of death or December 31st of
the year in which the deceased would have reached age 70 1/2, which ever
is later.
- - If death occurs AFTER the date Minimum Distributions must begin under the
Code, the Death Benefit must be paid out at least as rapidly as under the
method then in effect.
A Beneficiary has the flexibility to take out more each year than required
under the Minimum Distribution rules. Until withdrawn, amounts in an IRA, 403(b)
or other "qualified investment" continue to be tax deferred. Amounts withdrawn
each year, including amounts that are required to be withdrawn under the Minimum
Distribution rules, are subject to tax. You may wish to consult a professional
tax advisor for tax advice as to your particular situation.
Upon election of this Qualified Beneficiary Continuation option:
- - the Annuity contract will be continued in the Owner's name, for the
benefit of the Beneficiary.
- - the Beneficiary will be charged at an amount equal to 1.40% daily against
the average daily assets allocated to the Sub-accounts.
- - the Account Value will be equal to any Death Benefit (including any
optional Death Benefit) that would have been payable to the Beneficiary if
they had taken a lump sum distribution.
- - the Beneficiary may request transfers among Sub-accounts, subject to the
same limitations and restrictions that applied to the Owner, except that
the Sub-accounts offered will be those offered under the Qualified
Beneficiary Continuation option at the time the option is elected.
- - the Fixed Allocations will be those offered under the Qualified
Beneficiary Continuation option at the time the option is elected.
- - no additional Purchase Payments can be applied to the Annuity.
- - other optional Benefits will be those offered under the Qualified
Beneficiary Continuation option at the time of election.
- - the basic Death Benefit and any optional Death Benefits elected by the
Owner will no longer apply to the Beneficiary.
- - the Beneficiary can request a withdrawal of all or a portion of the
Account Value at any time
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Death Benefit continued
- - upon the death of the Beneficiary, any remaining Account Value will be
paid in a lump sum to the person(s) named by the Beneficiary.
- - all amounts in the Annuity must be paid out to the Beneficiary according
to the Minimum Distribution rules described above.
Your Beneficiary will be provided with a prospectus and settlement option
that will describe this option at the time he or she elects this option. Please
contact American Skandia for additional information on the availability,
restrictions and limitations that will apply to a Beneficiary under the
Qualified Beneficiary Continuation option.
Please contact American Skandia for additional information on the
availability, restrictions and limitations that will apply to a Beneficiary
under the IRA Beneficiary Continuation option.
ARE THERE ANY EXCEPTIONS TO THESE RULES FOR PAYING THE DEATH BENEFIT?
Yes, there are exceptions that apply no matter how your Death Benefit is
calculated. There are exceptions to the Death Benefit if the decedent was not
the Owner or Annuitant as of the Issue Date and did not become the Owner or
Annuitant due to the prior Owner's or Annuitant's death. Any Death Benefit
(including any optional Death Benefit) that applies will be suspended for a
two-year period from the date he or she first became Owner or Annuitant. After
the two-year suspension period is completed, the Death Benefit is the same as if
this person had been an Owner or Annuitant on the Issue Date.
WHEN DO YOU DETERMINE THE DEATH BENEFIT?
We determine the amount of the Death Benefit as of the date we receive "due
proof of death", any instructions we require to determine the method of payment
and any other written representations we require to determine the proper payment
of the Death Benefit to all Beneficiaries. "Due proof of death" may include a
certified copy of a death certificate, a certified copy of a decree of a court
of competent jurisdiction as to the finding of death or other satisfactory proof
of death. Upon our receipt of "due proof of death" we automatically transfer the
Death Benefit to the AST Money Market Sub-account until we further determine the
universe of eligible Beneficiaries. Once the universe of eligible Beneficiaries
has been determined each eligible Beneficiary may allocate his or her eligible
share of the Death Benefit to the Sub-accounts according to our rules.
Each Beneficiary must make an election as to the method they wish to
receive their portion of the Death Benefit. Absent an election of a Death
Benefit payment method, no Death Benefit can be paid to the Beneficiary. We may
require written acknowledgment of all named Beneficiaries before we can pay the
Death Benefit. DURING THE PERIOD FROM THE DATE OF DEATH UNTIL WE RECEIVE ALL
REQUIRED PAPER WORK, THE AMOUNT OF THE DEATH BENEFIT MAY BE SUBJECT TO MARKET
FLUCTUATIONS.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Valuing Your Investment
HOW IS MY ACCOUNT VALUE DETERMINED?
During the accumulation period, the Annuity has an Account Value. The Account
Value is determined separately for each Sub-account allocation and for each
Fixed Allocation. The Account Value is the sum of the values of each Sub-account
allocation and the value of each Fixed Allocation. When determining the Account
Value on any day other than a Fixed Allocation's Maturity Date, the Account
Value may include any Market Value Adjustment that would apply to a Fixed
Allocation (if withdrawn or transferred) on that day.
WHAT IS THE SURRENDER VALUE OF MY ANNUITY?
The Surrender Value of your Annuity is the value available to you on any day
during the accumulation period. The Surrender Value is defined under "Glossary
of Terms" above.
HOW AND WHEN DO YOU VALUE THE SUB-ACCOUNTS?
When you allocate Account Value to a Sub-account, you are purchasing units of
the Sub-account. Each Sub-account invests exclusively in shares of an underlying
Portfolio. The value of the Units fluctuates with the market fluctuations of the
Portfolios. The value of the Units also reflects the daily accrual for the
Insurance Charge and if you elected one or more optional benefits whose annual
charge is deducted daily, the additional charge made for such benefits. There
may be several different Unit Prices for each Sub-account to reflect the
Insurance Charge and the charges for any optional benefits. The Unit Price for
the Units you purchase will be based on the total charges for the benefits that
apply to your Annuity. See the section entitled "What Happens to My Units When
There is a Change in Daily Asset-Based Charges?" for a detailed discussion of
how Units are purchased and redeemed to reflect changes in the daily charges
that apply to your Annuity.
Each Valuation Day, we determine the price for a Unit of each Sub-account,
called the "Unit Price." The Unit Price is used for determining the value of
transactions involving Units of the Sub-accounts. We determine the number of
Units involved in any transaction by dividing the dollar value of the
transaction by the Unit Price of the Sub-account as of the Valuation Day.
EXAMPLE
Assume you allocate $5,000 to a Sub-account. On the Valuation Day you make the
allocation, the Unit Price is $14.83. Your $5,000 buys 337.154 Units of the
Sub-account. Assume that later, you wish to transfer $3,000 of your Account
Value out of that Sub-account and into another Sub-account. On the Valuation Day
you request the transfer, the Unit Price of the original Sub-account has
increased to $16.79. To transfer $3,000, we sell 178.677 Units at the current
Unit Price, leaving you 158.477 Units. We then buy $3,000 of Units of the new
Sub-account at the Unit Price of $17.83. You would then have 168.255 Units of
the new Sub-account.
HOW DO YOU VALUE FIXED ALLOCATIONS?
During the Guarantee Period, we use the concept of an Interim Value. The Interim
Value can be calculated on any day and is equal to the initial value allocated
to a Fixed Allocation plus all interest credited to a Fixed Allocation as of the
date calculated. The Interim Value does not include the impact of any Market
Value Adjustment. If you made any transfers or withdrawals from a Fixed
Allocation, the Interim Value will reflect the withdrawal of those amounts and
any interest credited to those amounts before they were withdrawn. To determine
the Account Value of a Fixed Allocation on any day other than its Maturity Date,
we multiply the Account Value of the Fixed Allocation times the Market Value
Adjustment factor.
WHEN DO YOU PROCESS AND VALUE TRANSACTIONS?
American Skandia is generally open to process financial transactions on those
days that the New York Stock Exchange (NYSE) is open for trading. There may be
circumstances where the NYSE does not open on a regularly scheduled date or time
or closes at an earlier time than scheduled (normally 4:00 p.m. EST). Financial
transactions requested before the close of the NYSE which meet our requirements
will be processed according to the value next determined following the close of
business. Financial transactions requested on a non-business day or after the
close of the NYSE will be processed based on the value next computed on the next
Valuation Day. There may be circumstances when the opening or closing time of
the NYSE is different than other major stock exchanges, such as NASDAQ or the
American Stock Exchange. Under such circumstances, the closing time of the NYSE
will be used when valuing and processing transactions.
There may be circumstances where the NYSE is open, however, due to
inclement weather, natural disaster or other circumstances beyond our control,
our offices may be closed or our business processing capabilities may be
restricted. Under those circumstances, your Account Value may fluctuate based
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Valuing Your Investment continued
on changes in the Unit Values, but you may not be able to transfer Account
Value, or make a purchase or redemption request.
The NYSE is closed on the following nationally recognized holidays: New
Year's Day, Martin Luther King, Jr. Day, Washington's Birthday, Good Friday,
Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. On
those dates, we will not process any financial transactions involving purchase
or redemption orders.
American Skandia will also not process financial transactions involving
purchase or redemption orders or transfers on any day that:
- - trading on the NYSE is restricted;
- - an emergency exists making redemption or valuation of securities held in
the separate account impractical; or
- - the SEC, by order, permits the suspension or postponement for the
protection of security holders.
INITIAL PURCHASE PAYMENTS: We are required to allocate your initial
Purchase Payment to the Sub-accounts within two (2) business days after we
receive all of our requirements at our office to issue the Annuity. If we do not
have all the required information to allow us to issue your Annuity, we may
retain the Purchase Payment while we try to reach you or your representative to
obtain all of our requirements. If we are unable to obtain all of our required
information within five (5) business days, we are required to return the
Purchase Payment to you at that time, unless you specifically consent to our
retaining the Purchase Payment while we gather the required information. Once we
obtain the required information, we will invest the Purchase Payment and issue
the Annuity within two (2) business days. During any period that we are trying
to obtain the required information, your money is not invested.
ADDITIONAL PURCHASE PAYMENTS: We will apply any additional Purchase
Payments on the Valuation Day that we receive the Purchase Payment at our office
with satisfactory allocation instructions. We will allocate any additional
Purchase Payments you make according to your most recent allocation instructions
if none are provided.
SCHEDULED TRANSACTIONS: "Scheduled" transactions include transfers under a
Dollar Cost Averaging, rebalancing, or asset allocation program, Systematic
Withdrawals, Minimum Distributions or annuity payments. Scheduled transactions
are processed and valued as of the date they are scheduled, unless the scheduled
day is not a Valuation Day. In that case, the transaction will be processed and
valued on the next Valuation Day, unless the next Valuation Day falls in the
subsequent calendar year, in which case the transaction will be processed and
valued on the prior Valuation Day.
UNSCHEDULED TRANSACTIONS: "Unscheduled" transactions include any other
non-scheduled transfers and requests for Partial Withdrawals or Surrenders.
Unscheduled transactions are processed and valued as of the Valuation Day we
receive the request at our Office and have all of the required information.
DEATH BENEFITS: Death Benefit claims require our review and evaluation
before processing. We price such transactions as of the date we receive at our
Office all supporting documentation we require for such transactions and that
are satisfactory to us.
TRANSACTIONS IN RYDEX AND PROFUNDS VP SUB-ACCOUNTS: Generally, purchase or
redemption orders or transfer requests must be received by us by no later than
the close of the NYSE to be processed on the current Valuation Day. However, any
purchase or redemption order or transfer request involving the Rydex or ProFunds
VP Sub-accounts must be received by us no later than one hour prior to any
announced closing of the applicable securities exchange (generally, 3:00 p.m.
Eastern time) to be processed on the current Valuation Day. The "cut-off" time
for such financial transactions involving a Rydex or ProFunds VP Sub-account
will be extended to 1/2 hour prior to any announced closing (generally, 3:30
p.m. Eastern time) for transactions submitted electronically through American
Skandia's Internet website (www.americanskandia.prudential.com). You cannot
request a transaction involving the purchase, redemption or transfer of Units in
one of the Rydex or ProFunds VP Sub-accounts between the applicable "cut-off"
time and 4:00 p.m. Transactions received after 4:00 p.m. will be treated as
received by us on the next Valuation Day.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
WHAT HAPPENS TO MY UNITS WHEN THERE IS A CHANGE IN DAILY ASSET-BASED CHARGES?
Termination of Optional Benefits: Except for the Guaranteed Minimum Income
Benefit, the Combination 5% Roll-up and Highest Anniversary Value Death Benefit
and the Highest Value Death Benefit, which cannot be terminated by the owner
once elected, if any optional benefit terminates, we will no longer deduct the
charge we apply to purchase the optional benefit. Certain optional benefits may
be added after you have purchased your Annuity. On the date a charge no longer
applies or a charge for an optional benefit begins to be deducted, your Annuity
will become subject to a different daily asset-based charge. This change may
result in the number of Units attributed to your Annuity and the value of those
units being different than it was before the change, however, the adjustment in
the number of Units and Unit Price will not affect your Account Value (although
the change in charges that are deducted will affect your Account Value).
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Tax Considerations
The tax considerations associated with the Annuity vary depending on whether the
contract is (i) owned by an individual and not associated with a tax-favored
retirement plan (including contracts held by a non-natural person, such as a
trust acting as an agent for a natural person), or (ii) held under a tax-favored
retirement plan. We discuss the tax considerations for these categories of
contracts below. The discussion is general in nature and describes only federal
income tax law (not state or other tax laws). It is based on current law and
interpretations, which may change. The discussion includes a description of
certain spousal rights under the contract and under tax-qualified plans. Our
administration of such spousal rights and related tax reporting accords with our
understanding of the Defense of Marriage Act (which defines a "marriage" as a
legal union between a man and a woman and a "spouse" as a person of the opposite
sex). The information provided is not intended as tax advice. You should consult
with a qualified tax advisor for complete information and advice. References to
purchase payments below relates to your cost basis in your contract. Generally,
your cost basis in a contract not associated with a tax-favored retirement plan
is the amount you pay into your contract, or into annuities exchanged for your
contract, on an after-tax basis less any withdrawals of such payments.
This contract may also be purchased as a non-qualified annuity (i.e., a
contract not held under a tax-favored retirement plan) by a trust or custodial
IRA or 403(b) account, which can hold other permissible assets other than the
annuity. The terms and administration of the trust or custodial account in
accordance with the laws and regulations for IRAs or 403(b)s, as applicable, are
the responsibility of the applicable trustee or custodian.
CONTRACTS OWNED BY INDIVIDUALS (NOT ASSOCIATED WITH TAX-FAVORED RETIREMENT
PLANS)
TAXES PAYABLE BY YOU
We believe the contract is an annuity contract for tax purposes. Accordingly, as
a general rule, you should not pay any tax until you receive money under the
contract.
Generally, annuity contracts issued by the same company (and affiliates)
to you during the same calendar year must be treated as one annuity contract for
purposes of determining the amount subject to tax under the rules described
below.
It is possible that the Internal Revenue Service (IRS) would assert that
some or all of the charges for the optional benefits under the contract should
be treated for federal income tax purposes as a partial withdrawal from the
contract. If this were the case, the charge for this benefit could be deemed a
withdrawal and treated as taxable to the extent there are earnings in the
contract. Additionally, for owners under age 59 1/2, the taxable income
attributable to the charge for the benefit could be subject to a tax penalty.
If the IRS determines that the charges for one or more benefits under the
contract are taxable withdrawals, then the sole or surviving owner will be
provided with a notice from us describing available alternatives regarding these
benefits.
If you choose to defer the Annuity Date beyond the default date for your
Annuity, the IRS may not consider your contract to be an annuity under the tax
law. For more information, see "How and When Do I Choose the Annuity Payment
Option?".
TAXES ON WITHDRAWALS AND SURRENDER
If you make a withdrawal from your contract or surrender it before annuity
payments begin, the amount you receive will be taxed as ordinary income, rather
than as return of purchase payments, until all gain has been withdrawn. You will
generally be taxed on any withdrawals from the contract while you are alive even
if the withdrawal is paid to someone else.
If you assign or pledge all or part of your contract as collateral for a
loan, the part assigned generally will be treated as a withdrawal.
If you transfer your contract for less than full consideration, such as by
gift, you will trigger tax on any gain in the contract. This rule does not apply
if you transfer the contract to your spouse or under most circumstances if you
transfer the contract incident to divorce.
TAXES ON ANNUITY PAYMENTS
A portion of each annuity payment you receive will be treated as a partial
return of your purchase payments and will not be taxed. The remaining portion
will be taxed as ordinary income. Generally, the nontaxable portion is
determined by multiplying the annuity payment you receive by a fraction, the
numerator of which is your purchase payments (less any amounts previously
received tax-free) and the denominator of which is the total expected payments
under the contract.
After the full amount of your purchase payments have been recovered
tax-free, the full amount of the annuity payments will be taxable. If annuity
payments stop due to the death of the annuitant before the full amount of your
purchase payments have been recovered, a tax deduction may be allowed for the
unrecovered amount.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
TAX PENALTY ON WITHDRAWALS AND ANNUITY PAYMENTS
Any taxable amount you receive under your contract may be subject to a 10% tax
penalty. Amounts are not subject to this tax penalty if:
- - the amount is paid on or after you reach age 59 1/2 or die;
- - the amount received is attributable to your becoming disabled;
- - generally the amount paid or received is in the form of substantially
equal payments not less frequently than annually (Please note that
substantially equal payments must continue until the later of reaching age
59-1/2 or 5 years. Modification of payments during that time period will
result in retroactive application of the 10% tax penalty.); or
- - the amount received is paid under an immediate annuity contract (in which
annuity payments begin within one year of purchase).
SPECIAL RULES IN RELATION TO TAX-FREE EXCHANGES UNDER SECTION 1035
Section 1035 of the Internal Revenue Code of 1986, as amended (Code) permits
certain tax-free exchanges of a life insurance, annuity or endowment contract
for an annuity. If the annuity is purchased through a tax-free exchange of a
life insurance, annuity or endowment contract that was purchased prior to August
14, 1982, then any purchase payments made to the original contract prior to
August 14, 1982 will be treated as made to the new contract prior to that date.
(See Federal Tax Status section in the Statement of Additional Information.)
Partial surrenders may be treated in the same way as tax-free 1035
exchanges of entire contracts, therefore avoiding current taxation of any gains
in the contract as well as the 10% tax penalty on pre-age 59 1/2 withdrawals.
The IRS has reserved the right to treat transactions it considers abusive as
ineligible for this favorable partial 1035 exchange treatment. We do not know
what transactions may be considered abusive. For example we do not know how the
IRS may view early withdrawals or annuitizations after a partial exchange. In
addition, it is unclear how the IRS will treat a partial exchange from a life
insurance, endowment, or annuity contract into an immediate annuity. As of the
date of this prospectus, we will accept a partial 1035 exchange from a
non-qualified annuity into an immediate annuity as a "tax-free" exchange for
future tax reporting purposes, except to the extent that we, as a reporting and
withholding agent, believe that we would be expected to deem the transaction to
be abusive. However, some insurance companies may not recognize these partial
surrenders as tax-free exchanges and may report them as taxable distributions to
the extent of any gain distributed as well as subjecting the taxable portion of
the distribution to the 10% tax penalty. We strongly urge you to discuss any
transaction of this type with your tax advisor before proceeding with the
transaction.
TAXES PAYABLE BY BENEFICIARIES
The death benefit options are subject to income tax to the extent the
distribution exceeds the cost basis in the contract. The value of the death
benefit, as determined under federal law, is also included in the owner's
estate.
Generally, the same tax rules described above would also apply to amounts
received by your beneficiary. Choosing any option other than a lump sum death
benefit may defer taxes. Certain minimum distribution requirements apply upon
your death, as discussed further below.
Tax consequences to the beneficiary vary among the death benefit payment
options.
- - Choice 1: the beneficiary is taxed on earnings in the contract.
- - Choice 2: the beneficiary is taxed as amounts are withdrawn (in this case
earnings are treated as being distributed first).
- - Choice 3: the beneficiary is taxed on each payment (part will be treated
as earnings and part as return of premiums).
CONSIDERATIONS FOR CONTINGENT ANNUITANTS: There may be adverse tax consequences
if a Contingent Annuitant succeeds an Annuitant when the Annuity is owned by a
trust that is neither tax exempt nor qualifies for preferred treatment under
certain sections of the Code. In general, the Code is designed to prevent
indefinite deferral of tax. Continuing the benefit of tax deferral by naming one
or more Contingent Annuitants when the Annuity is owned by a non-qualified trust
might be deemed an attempt to extend the tax deferral for an indefinite period.
Therefore, adverse tax treatment may depend on the terms of the trust, who is
named as Contingent Annuitant, as well as the particular facts and
circumstances. You should consult your tax advisor before naming a Contingent
Annuitant if you expect to use an Annuity in such a fashion.
REPORTING AND WITHHOLDING ON DISTRIBUTIONS
Taxable amounts distributed from your annuity contracts are subject to federal
and state income tax reporting and withholding. In general, we will withhold
federal income tax from the taxable portion of such distribution based on the
type of distri-
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Tax Considerations continued
bution. In the case of an annuity or similar periodic payment, we will withhold
as if you are a married individual with 3 exemptions unless you designate a
different withholding status. In the case of all other distributions, we will
withhold at a 10% rate. You may generally elect not to have tax withheld from
your payments. An election out of withholding must be made on forms that we
provide.
State income tax withholding rules vary and we will withhold based on the
rules of your State of residence. Special tax rules apply to withholding for
nonresident aliens, and we generally withhold income tax for nonresident aliens
at a 30% rate. A different withholding rate may be applicable to a nonresident
alien based on the terms of an existing income tax treaty between the United
States and the nonresident alien's country. Please refer to the discussion below
regarding withholding rules for tax favored plans (for example, an IRA).
Regardless of the amount withheld by us, you are liable for payment of
federal and state income tax on the taxable portion of annuity distributions.
You should consult with your tax advisor regarding the payment of the correct
amount of these income taxes and potential liability if you fail to pay such
taxes.
ANNUITY QUALIFICATION
Diversification And Investor Control. In order to qualify for the tax rules
applicable to annuity contracts described above, the assets underlying the
variable investment options of the annuity contract must be diversified,
according to certain rules. We believe these diversification rules will be met.
An additional requirement for qualification for the tax treatment
described above is that we, and not you as the contract owner, must have
sufficient control over the underlying assets to be treated as the owner of the
underlying assets for tax purposes. While we also believe these investor control
rules will be met, the Treasury Department may promulgate guidelines under which
a variable annuity will not be treated as an annuity for tax purposes if persons
with ownership rights have excessive control over the investments underlying
such variable annuity. It is unclear whether such guidelines, if in fact
promulgated, would have retroactive effect. It is also unclear what effect, if
any, such guidelines may have on transfers between the investment options
offered pursuant to this Prospectus. We will take any action, including
modifications to your Annuity or the investment options, required to comply with
such guidelines if promulgated.
Please refer to the Statement of Additional information for further
information on these Diversification and Investor Control issues.
Required Distributions Upon Your Death. Upon your death, certain
distributions must be made under the contract. The required distributions depend
on whether you die before you start taking annuity payments under the contract
or after you start taking annuity payments under the contract.
If you die on or after the annuity date, the remaining portion of the
interest in the contract must be distributed at least as rapidly as under the
method of distribution being used as of the date of death.
If you die before the annuity date, the entire interest in the contract
must be distributed within 5 years after the date of death. However, if a
periodic payment option is selected by your designated beneficiary and if such
payments begin within 1 year of your death, the value of the contract may be
distributed over the beneficiary's life or a period not exceeding the
beneficiary's life expectancy. Your designated beneficiary is the person to whom
benefit rights under the contract pass by reason of death, and must be a natural
person in order to elect a periodic payment option based on life expectancy or a
period exceeding five years.
If the contract is payable to (or for the benefit of) your surviving
spouse, that portion of the contract may be continued with your spouse as the
owner.
Changes In The Contract. We reserve the right to make any changes we deem
necessary to assure that the contract qualifies as an annuity contract for tax
purposes. Any such changes will apply to all contract owners and you will be
given notice to the extent feasible under the circumstances.
ADDITIONAL INFORMATION
You should refer to the Statement of Additional Information if:
- - The contract is held by a corporation or other entity instead of by an
individual or as agent for an individual.
- - Your contract was issued in exchange for a contract containing purchase
payments made before August 14, 1982.
- - You transfer your contract to, or designate, a beneficiary who is either
371/2 years younger than you or a grandchild.
84
- - You purchased more than one annuity contract from the same insurer within
the same calendar year (other than contracts held by tax favored plans).
CONTRACTS HELD BY TAX FAVORED PLANS
The following discussion covers annuity contracts held under tax-favored
retirement plans.
Currently, the contract may be purchased for use in connection with
individual retirement accounts and annuities (IRAs) which are subject to
Sections 408(a), 408(b) and 408A of the Code. In addition, this contract may be
purchased for use in connection with a corporate Pension and Profit-sharing plan
(subject to 401(a) of the Code), H.R. 10 plans (also known as Keogh Plans,
subject to 401(a) of the Code), Tax Sheltered Annuities (subject to 403(b) of
the Code, also known as Tax Deferred Annuities or TDAs), and Section 457 plans
(subject to 457 of the Code). This description assumes that you have satisfied
the requirements for eligibility for these products.
This contract may also be purchased as a non-qualified annuity (i.e., a
contract not held under a tax-favored retirement plan) by a trust or custodial
IRA or 403(b) account, which can hold other permissible assets other than the
annuity. The terms and administration of the trust or custodial account in
accordance with the laws and regulations for IRAs or 403(b)s, as applicable, are
the responsibility of the applicable trustee or custodian.
You should be aware that tax favored plans such as IRAs generally provide
income tax deferral regardless of whether they invest in annuity contracts. This
means that when a tax favored plan invests in an annuity contract, it generally
does not result in any additional tax benefits (such as income tax deferral and
income tax free transfers).
TYPES OF TAX FAVORED PLANS
IRAs. If you buy a contract for use as an IRA, we will provide you a copy of the
prospectus and contract. The "IRA Disclosure Statement" contains information
about eligibility, contribution limits, tax particulars, and other IRA
information. In addition to this information (some of which is summarized
below), the IRS requires that you have a "free look" after making an initial
contribution to the contract. During this time, you can cancel the contract by
notifying us in writing, and we will refund all of the purchase payments under
the contract (or, if provided by applicable state law, the amount credited under
the contract, if greater), less any applicable federal and state income tax
withholding.
Contributions Limits/Rollovers. Because of the way the contract is
designed, you may purchase a contract for an IRA in connection with a "rollover"
of amounts from a qualified retirement plan, as a transfer from another IRA or
as a combined contribution for both the current and prior tax year (only
available between January 1st and April 15th. In 2005 the limit is $4,000;
increasing to $5,000 in 2008. After 2008 the contribution amount will be indexed
for inflation. The tax law also provides for a catch-up provision for
individuals who are age 50 and above. These taxpayers will be permitted to
contribute an additional $500 increasing to $1,000 in 2006 and years thereafter.
The "rollover" rules under the Code are fairly technical; however, an
individual (or his or her surviving spouse) may generally "roll over" certain
distributions from tax favored retirement plans (either directly or within 60
days from the date of these distributions) if he or she meets the requirements
for distribution. Once you buy the contract, you can make regular IRA
contributions under the contract (to the extent permitted by law). However, if
you make such regular IRA contributions, you should note that you will not be
able to treat the contract as a "conduit IRA," which means that you will not
retain possible favorable tax treatment if you subsequently "roll over" the
contract funds originally derived from a qualified retirement plan or TDA into
another Section 401(a) plan or TDA.
Required Provisions. Contracts that are IRAs (or endorsements that are
part of the contract) must contain certain provisions:
- - You, as owner of the contract, must be the "annuitant" under the contract
(except in certain cases involving the division of property under a decree
of divorce);
- - Your rights as owner are non-forfeitable;
- - You cannot sell, assign or pledge the contract;
- - The annual contribution you pay cannot be greater than the maximum amount
allowed by law, including catch-up contributions if applicable (which does
not include any rollover amounts);
- - The date on which annuity payments must begin cannot be later than April
1st of the calendar year after the calendar year you turn age 70 1/2; and
- - Death and annuity payments must meet "minimum distribution requirements"
described below.
Usually, the full amount of any distribution from an IRA (including a
distribution from this contract) which is not a rollover is taxable. As taxable
income, these distributions are subject to the general tax withholding rules
described earlier. In
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Tax Considerations continued
addition to this normal tax liability, you may also be liable for the following,
depending on your actions:
- - A 10% "early distribution penalty" described below;
- - Liability for "prohibited transactions" if you, for example, borrow
against the value of an IRA; or
- - Failure to take a minimum distribution also described below.
SEPs. SEPs are a variation on a standard IRA, and contracts issued to a
SEP must satisfy the same general requirements described under IRAs (above).
There are, however, some differences:
- - If you participate in a SEP, you generally do not include in income any
employer contributions made to the SEP on your behalf up to the lesser of
(a) $42,000 in 2005 or (b) 25% of the employee's earned income (not
including contribution as "earned income" for these purposes). However,
for these purposes, compensation in excess of certain limits established
by the IRS will not be considered. In 2005, this limit is $210,000;
- - SEPs must satisfy certain participation and nondiscrimination requirements
not generally applicable to IRAs; and
- - SEPs for small employers permit salary deferrals up to $14,000 in 2005
with the employer making these contributions to the SEP. However, no new
"salary reduction" or "SARSEPs" can be established after 1996. Individuals
participating in a SARSEP who are age 50 or above by the end of the year
will be permitted to contribute an additional $4,000 in 2005, increasing
to $5,000 in 2006. Thereafter, the amount is indexed for inflation.
You will also be provided the same information, and have the same "free
look" period, as you would have if you purchased the contract for a standard
IRA.
ROTH IRAs. Like standard IRAs, income within a Roth IRA accumulates
tax-free, and contributions are subject to specific limits. Roth IRAs have,
however, the following differences:
- - Contributions to a Roth IRA cannot be deducted from your gross income;
- - "Qualified distributions" from a Roth IRA are excludable from gross
income. A "qualified distribution" is a distribution that satisfies two
requirements: (1) the distribution must be made (a) after the owner of the
IRA attains age 59 1/2; (b) after the owner's death; (c) due to the
owner's disability; or (d) for a qualified first time homebuyer
distribution within the meaning of Section 72(t)(2)(F) of the Code; and
(2) the distribution must be made in the year that is at least five tax
years after the first year for which a contribution was made to any Roth
IRA established for the owner or five years after a rollover, transfer, or
conversion was made from a traditional IRA to a Roth IRA. Distributions
from a Roth IRA that are not qualified distributions will be treated as
made first from contributions and then from earnings, and taxed generally
in the same manner as distributions from a traditional IRA.
- - If eligible (including meeting income limitations and earnings
requirements), you may make contributions to a Roth IRA after attaining
age 70 1/2, and distributions are not required to begin upon attaining
such age or at any time thereafter.
Because of the way the contract is designed, you may purchase a contract
for a Roth IRA in connection with a "rollover" of amounts of another traditional
IRA, conduit IRA, SEP, SIMPLE-IRA, a Roth IRA or with a combined contribution
for both the current and prior tax year (only available between January 1st and
April 15th. The Code permits persons who meet certain income limitations
(generally, adjusted gross income under $100,000), and who receive certain
qualifying distributions from such non-Roth IRAs, to directly rollover or make,
within 60 days, a "rollover" of all or any part of the amount of such
distribution to a Roth IRA which they establish. This conversion triggers
current taxation (but is not subject to a 10% early distribution penalty). Once
the contract has been purchased, regular Roth IRA contributions will be accepted
to the extent permitted by law.
TDAs. You may own a TDA generally if you are either an employer or
employee of a tax-exempt organization (as defined under Code Section 501 (c)(3))
or a public educational organization, and you may make contributions to a TDA so
long as the employee's rights to the annuity are nonforfeitable. Contributions
to a TDA, and any earnings, are not taxable until distribution. You may also
make contributions to a TDA under a salary reduction agreement, generally up to
a maximum of $14,000 in 2005. Individuals participating in a TDA who are age 50
or above by the end of the year will be permitted to contribute an additional
$4,000 in 2005, increasing to $5,000 in 2006. Thereafter, the amount is indexed
for inflation. Further, you may roll over TDA amounts to another TDA or an IRA.
You may also roll over TDA amounts to a qualified retirement plan, a SEP and a
457 government plan. A contract may only qualify as a TDA if distributions
(other than "grandfathered" amounts held as of December 31, 1988) may be made
only on account of:
86
- - Your attainment of age 59 1/2;
- - Your severance of employment;
- - Your death;
- - Your total and permanent disability; or
- - Hardship (under limited circumstances, and only related to salary
deferrals and any earnings attributable to these amounts).
In any event, you must begin receiving distributions from your TDA by
April 1st of the calendar year after the calendar year you turn age 70 1/2 or
retire, whichever is later.
These distribution limits do not apply either to transfers or exchanges of
investments under the contract, or to any "direct transfer" of your interest in
the contract to another TDA or to a mutual fund "custodial account" described
under Code Section 403(b)(7).
Employer contributions to TDAs are subject to the same general
contribution, nondiscrimination, and minimum participation rules applicable to
"qualified" retirement plans.
MINIMUM DISTRIBUTION REQUIREMENTS AND PAYMENT OPTION
If you hold the contract under an IRA (or other tax-favored plan), IRS minimum
distribution requirements must be satisfied. This means that generally payments
must start by April 1 of the year after the year you reach age 70 1/2 and must
be made for each year thereafter. The amount of the payment must at least equal
the minimum required under the IRS rules. Several choices are available for
calculating the minimum amount. More information on the mechanics of this
calculation is available on request. Please contact us at a reasonable time
before the IRS deadline so that a timely distribution is made. Please note that
there is a 50% tax penalty on the amount of any minimum distribution not made in
a timely manner.
Effective in 2006, in accordance with recent changes in laws and
regulations, required minimum distributions will be calculated based on the sum
of the contract value and the actuarial value of any additional death benefits
and benefits from optional riders that you have purchased under the contract. As
a result, the required minimum distributions may be larger than if the
calculation were based on the contract value only, which may in turn result in
an earlier (but not before the required beginning date) distribution under the
Contract and an increased amount of taxable income distributed to the contract
owner, and a reduction of death benefits and the benefits of any optional
riders.
You can use the Minimum Distribution option to satisfy the IRS minimum
distribution requirements for this contract without either beginning annuity
payments or surrendering the contract. We will distribute to you this minimum
distribution amount, less any other partial withdrawals that you made during the
year.
Although the IRS rules determine the required amount to be distributed
from your IRA each year, certain payment alternatives are still available to
you. If you own more than one IRA, you can choose to satisfy your minimum
distribution requirement for each of your IRAs by withdrawing that amount from
any of your IRAs.
PENALTY FOR EARLY WITHDRAWALS
You may owe a 10% tax penalty on the taxable part of distributions received from
an IRA, SEP, Roth IRA, TDA or qualified retirement plan before you attain age 59
1/2. Amounts are not subject to this tax penalty if:
- - the amount is paid on or after you reach age 59 1/2 or die;
- - the amount received is attributable to your becoming disabled; or
- - generally the amount paid or received is in the form of substantially
equal payments not less frequently than annually (Please note that
substantially equal payments must continue until the later of reaching age
59 1/2 or 5 years. Modification of payments during that time period will
result in retroactive application of the 10% tax penalty.).
Other exceptions to this tax may apply. You should consult your tax
advisor for further details.
WITHHOLDING
Unless a distribution is an eligible rollover distribution that is "directly"
rolled over into another qualified plan, IRA (including the IRA variations
described above), SEP, 457 government plan or TDA, we will withhold federal
income tax at the rate of 20%. This 20% withholding does not apply to
distributions from IRAs and Roth IRAs. For all other distributions, unless you
elect otherwise, we will withhold federal income tax from the taxable portion of
such distribution at an appropriate percentage. The rate of withholding on
annuity payments where no mandatory withholding is required is determined on the
basis of the withholding certificate that you file with us. If you do not file a
certificate, we will automatically withhold federal taxes on the following
basis:
- - For any annuity payments not subject to mandatory withholding, you will
have taxes withheld by us as if you are a married individual, with 3
exemptions; and
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Tax Considerations continued
- - For all other distributions, we will withhold at a 10% rate.
We will provide you with forms and instructions concerning the right to
elect that no amount be withheld from payments in the ordinary course. However,
you should know that, in any event, you are liable for payment of federal income
taxes on the taxable portion of the distributions, and you should consult with
your tax advisor to find out more information on your potential liability if you
fail to pay such taxes. There may be additional state income tax withholding
requirements.
ERISA DISCLOSURE/REQUIREMENTS
ERISA (the "Employee Retirement Income Security Act of 1974") and the Code
prevents a fiduciary and other "parties in interest" with respect to a plan
(and, for these purposes, an IRA would also constitute a "plan") from receiving
any benefit from any party dealing with the plan, as a result of the sale of the
contract. Administrative exemptions under ERISA generally permit the sale of
insurance/annuity products to plans, provided that certain information is
disclosed to the person purchasing the contract. This information has to do
primarily with the fees, charges, discounts and other costs related to the
contract, as well as any commissions paid to any agent selling the contract.
Information about any applicable fees, charges, discounts, penalties or
adjustments may be found in the applicable sections of this Prospectus.
Information about sales representatives and commissions may be found in
the sections of this Prospectus addressing distribution of the Annuity.
Please consult your tax advisor if you have any additional questions.
SPOUSAL CONSENT RULES FOR RETIREMENT PLANS -- QUALIFIED CONTRACTS
If you are married at the time your payments commence, you may be required by
federal law to choose an income option that provides survivor annuity income to
your spouse, unless your spouse waives that right. Similarly, if you are married
at the time of your death, federal law may require all or a portion of the death
benefit to be paid to your spouse, even if you designated someone else as your
beneficiary. A brief explanation of the applicable rules follows. For more
information, consult the terms of your retirement arrangement.
Defined Benefit Plans and Money Purchase Pension Plans. If you are married
at the time your payments commence, federal law requires that benefits be paid
to you in the form of a "qualified joint and survivor annuity" (QJSA), unless
you and your spouse waive that right, in writing. Generally, this means that you
will receive a reduced payment during your life and, upon your death, your
spouse will receive at least one-half of what you were receiving for life. You
may elect to receive another income option if your spouse consents to the
election and waives his or her right to receive the QJSA. If your spouse
consents to the alternative form of payment, your spouse may not receive any
benefits from the plan upon your death. Federal law also requires that the plan
pay a death benefit to your spouse if you are married and die before you begin
receiving your benefit. This benefit must be available in the form of an annuity
for your spouse's lifetime and is called a "qualified pre-retirement survivor
annuity" (QPSA). If the plan pays death benefits to other beneficiaries, you may
elect to have a beneficiary other than your spouse receive the death benefit,
but only if your spouse consents to the election and waives his or her right to
receive the QPSA. If your spouse consents to the alternate beneficiary, your
spouse will receive no benefits from the plan upon your death. Any QPSA waiver
prior to your attaining age 35 will become null and void on the first day of the
calendar year in which you attain age 35, if still employed.
Defined Contribution Plans (including 401(k) Plans and ERISA 403(b)
Annuities). Spousal consent to a distribution is generally not required. Upon
your death, your spouse will receive the entire death benefit, even if you
designated someone else as your beneficiary, unless your spouse consents in
writing to waive this right. Also, if you are married and elect an annuity as a
periodic income option, federal law requires that you receive a QJSA (as
described above), unless you and your spouse consent to waive this right.
IRAs, non-ERISA 403(b) Annuities, and 457 Plans. Spousal consent to a
distribution is not required. Upon your death, any death benefit will be paid to
your designated beneficiary.
ADDITIONAL INFORMATION
For additional information about federal tax law requirements applicable to tax
favored plans, see the IRA Disclosure Statement.
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
General Information
HOW WILL I RECEIVE STATEMENTS AND REPORTS?
We send any statements and reports required by applicable law or regulation to
you at your last known address of record. You should therefore give us prompt
notice of any address change. We reserve the right, to the extent permitted by
law and subject to your prior consent, to provide any prospectus, prospectus
supplements, confirmations, statements and reports required by applicable law or
regulation to you through our Internet Website at
http://www.americanskandia.prudential.com or any other electronic means,
including diskettes or CD ROMs. We send a confirmation statement to you each
time a transaction is made affecting Account Value, such as making additional
Purchase Payments, transfers, exchanges or withdrawals. We also send quarterly
statements detailing the activity affecting your Annuity during the calendar
quarter. We may confirm regularly scheduled transactions, such as the Annual
Maintenance Fee, systematic withdrawals (including 72(t) payments and required
minimum distributions), bank drafting, dollar cost averaging, and static
rebalancing, in quarterly statements instead of confirming them immediately. You
should review the information in these statements carefully. You may request
additional reports. We reserve the right to charge up to $50 for each such
additional report. We may also send an annual report and a semi-annual report
containing applicable financial statements for the Separate Account and the
Portfolios, as of December 31 and June 30, respectively, to Owners or, with your
prior consent, make such documents available electronically through our Internet
Website or other electronic means.
WHO IS AMERICAN SKANDIA?
American Skandia Life Assurance Corporation, a Prudential Financial Company
("American Skandia") is a stock life insurance company domiciled in Connecticut
with licenses in all 50 states, the District of Columbia and Puerto Rico.
American Skandia is a wholly-owned subsidiary of American Skandia, Inc. ("ASI"),
whose ultimate parent is Prudential Financial, Inc. American Skandia markets its
products to broker-dealers and financial planners through an internal field
marketing staff. In addition, American Skandia markets through and in
conjunction with financial institutions such as banks that are permitted
directly, or through affiliates, to sell annuities.
American Skandia is in the business of issuing annuity and life insurance
products. American Skandia currently offers the following products: (a) flexible
premium deferred annuities and single premium fixed deferred annuities that are
registered with the SEC; (b) certain other fixed deferred annuities that are not
registered with the SEC; and (c) both fixed and variable immediate adjustable
annuities.
Effective May 1, 2003, Skandia U.S. Inc., the sole shareholder of ASI,
which is the parent of American Skandia, was purchased by Prudential Financial,
Inc. Prudential Financial, Inc. is a New Jersey insurance holding company whose
subsidiary companies serve individual and institutional customers worldwide and
include The Prudential Insurance Company of America, one of the largest life
insurance companies in the U.S. These companies offer a variety of products and
services, including life insurance, property and casualty insurance, mutual
funds, annuities, pension and retirement related services and administration,
asset management, securities brokerage, banking and trust services, real estate
brokerage franchises, and relocation services.
No company other than American Skandia has any legal responsibility to pay
amounts that it owes under its annuity and variable life insurance contracts.
However, Prudential Financial exercises significant influence over the
operations and capital structure of American Skandia.
WHAT ARE SEPARATE ACCOUNTS?
The separate accounts are where American Skandia sets aside and invests the
assets of some of our annuities. In the accumulation period, assets supporting
Account Values of the Annuities are held in a separate account established under
the laws of the State of Connecticut. We are the legal owner of assets in the
separate accounts. In the payout period, assets supporting fixed annuity
payments and any adjustable annuity payments we make available are held in our
general account. Assets supporting variable annuity payment options may be
invested in our separate accounts. Income, gains and losses from assets
allocated to these separate accounts are credited to or charged against each
such separate account without regard to other income, gains or losses of
American Skandia or of any other of our separate accounts. These assets may only
be charged with liabilities which arise from the Annuities issued by American
Skandia. The amount of our obligation in relation to allocations to the
Sub-accounts is based on the investment performance of such Sub-accounts.
However, the obligations themselves are our general corporate obligations.
SEPARATE ACCOUNT B
During the accumulation period, the assets supporting obligations based on
allocations to the variable investment options
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AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
GENERAL INFORMATION CONTINUED
are held in Sub-accounts of American Skandia Life Assurance Corporation Variable
Account B, also referred to as "Separate Account B". Separate Account B was
established by us pursuant to Connecticut law on November 25, 1987. Separate
Account B also holds assets of other annuities issued by us with values and
benefits that vary according to the investment performance of Separate Account
B.
Separate Account B consists of multiple Sub-accounts. Each Sub-account
invests only in a single mutual fund or mutual fund portfolio. The name of each
Sub-account generally corresponds to the name of the underlying Portfolio. Each
Sub-account in Separate Account B may have several different Unit Prices to
reflect the Insurance Charge and the charges for any optional benefits that are
offered under this Annuity and other annuities issued by us through Separate
Account B. From November 16, 1993, the date the Annuity was first available,
until June 30, 1994 the annualized expenses charged against the Sub-accounts
under the Annuity totaled 1.90%. This included 1.00% as an investment allocation
services charge and 0.90% for the combination of mortality and expense risk, as
well as administration charges (we refer to this as the "Insurance Charge").
Starting on July 1, 1994, the 1.00% investment allocation services charge was no
longer assessed, so that the total annualized charges under the Annuity were
0.90%. As of May 1, 1998 the total annualized charges were further reduced to
0.65%. Separate Account B is registered with the SEC under the Investment
Company Act of 1940 ("Investment Company Act") as a unit investment trust, which
is a type of investment company. The SEC does not supervise investment policies,
management or practices of Separate Account B.
Prior to November 18, 2002, Separate Account B was organized as a single
separate account with six different Sub-account classes, each of which was
registered as a distinct unit investment trust under the Investment Company Act.
Effective November 18, 2002 each Sub-account class of Separate Account B was
consolidated into the unit investment trust formerly named American Skandia Life
Assurance Corporation Variable Account B (Class 1 Sub-accounts), which was
subsequently renamed American Skandia Life Assurance Corporation Variable
Account B. Each Sub-account of Separate Account B has multiple Unit Prices to
reflect the daily charge deducted for each combination of the applicable
Insurance Charge, Distribution Charge (when applicable) and the charge for each
optional benefit offered under Annuity contracts funded through Separate Account
B. The consolidation of Separate Account B had no impact on Annuity Owners.
We reserve the right to make changes to the Sub-accounts available under
the Annuity as we determine appropriate. We may offer new Sub-accounts,
eliminate Sub-accounts, or combine Sub-accounts at our sole discretion. We may
also close Sub-accounts to additional Purchase Payments on existing Annuity
contracts or close Sub-accounts for Annuities purchased on or after specified
dates. We may also substitute an underlying mutual fund or portfolio of an
underlying mutual fund for another underlying mutual fund or portfolio of an
underlying mutual fund, subject to our receipt of any exemptive relief that we
are required to obtain under the Investment Company Act. We will notify Owners
of changes we make to the Sub-accounts available under the Annuity.
VALUES AND BENEFITS BASED ON ALLOCATIONS TO THE SUB-ACCOUNTS WILL VARY
WITH THE INVESTMENT PERFORMANCE OF THE UNDERLYING MUTUAL FUNDS OR FUND
PORTFOLIOS, AS APPLICABLE. WE DO NOT GUARANTEE THE INVESTMENT RESULTS OF ANY
SUB-ACCOUNT. YOUR ACCOUNT VALUE ALLOCATED TO THE SUB-ACCOUNTS MAY INCREASE OR
DECREASE. YOU BEAR THE ENTIRE INVESTMENT RISK. THERE IS NO ASSURANCE THAT THE
ACCOUNT VALUE OF YOUR ANNUITY WILL EQUAL OR BE GREATER THAN THE TOTAL OF THE
PURCHASE PAYMENTS YOU MAKE TO US.
SEPARATE ACCOUNT D
During the accumulation period, assets supporting our obligations based on Fixed
Allocations are held in American Skandia Life Assurance Corporation Separate
Account D, also referred to as "Separate Account D". Such obligations are based
on the fixed interest rates we credit to Fixed Allocations and the terms of the
Annuities. These obligations do not depend on the investment performance of the
assets in Separate Account D. Separate Account D was established by us pursuant
to Connecticut law.
There are no units in Separate Account D. The Fixed Allocations are
guaranteed by our general account. An Annuity Owner who allocates a portion of
their Account Value to Separate Account D does not participate in the investment
gain or loss on assets maintained in Separate Account D. Such gain or loss
accrues solely to us. We retain the risk that the value of the assets in
Separate Account D may drop below the reserves and other liabilities we must
maintain. Should the value of the assets in Separate Account D drop below the
reserve and other liabilities we must maintain in relation to the annuities
90
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
supported by such assets, we will transfer assets from our general account to
Separate Account D to make up the difference. We have the right to transfer to
our general account any assets of Separate Account D in excess of such reserves
and other liabilities. We maintain assets in Separate Account D supporting a
number of annuities we offer.
We currently employ investment managers to manage the assets maintained in
Separate Account D. Each manager we employ is responsible for investment
management of a different portion of Separate Account D. From time to time
additional investment managers may be employed or investment managers may cease
being employed. We are under no obligation to employ or continue to employ any
investment manager(s) and have sole discretion over the investment managers we
retain.
We are not obligated to invest according to specific guidelines or
strategies except as may be required by Connecticut and other state insurance
laws.
WHAT IS THE LEGAL STRUCTURE OF THE UNDERLYING FUNDS?
Each underlying mutual fund is registered as an open-end management investment
company under the Investment Company Act. Shares of the underlying mutual fund
portfolios are sold to separate accounts of life insurance companies offering
variable annuity and variable life insurance products. The shares may also be
sold directly to qualified pension and retirement plans.
VOTING RIGHTS
We are the legal owner of the shares of the underlying mutual funds in which the
Sub-accounts invest. However, under SEC rules, you have voting rights in
relation to Account Value maintained in the Sub-accounts. If an underlying
mutual fund portfolio requests a vote of shareholders, we will vote our shares
based on instructions received from Owners with Account Value allocated to that
Sub-account. Owners have the right to vote an amount equal to the number of
shares attributable to their contracts. If we do not receive voting instructions
in relation to certain shares, we will vote those shares in the same manner and
proportion as the shares for which we have received instructions. We will
furnish those Owners who have Account Value allocated to a Sub-account whose
underlying mutual fund portfolio has requested a "proxy" vote with proxy
materials and the necessary forms to provide us with their voting instructions.
Generally, you will be asked to provide instructions for us to vote on matters
such as changes in a fundamental investment strategy, adoption of a new
investment advisory agreement, or matters relating to the structure of the
underlying mutual fund that require a vote of shareholders.
American Skandia Trust (the "Trust") has obtained an exemption from the
Securities and Exchange Commission that permits its co-investment advisers,
American Skandia Investment Services, Incorporated ("ASISI") and Prudential
Investments LLC, subject to approval by the Board of Trustees of the Trust, to
change sub-advisors for a Portfolio and to enter into new sub-advisory
agreements, without obtaining shareholder approval of the changes. This
exemption (which is similar to exemptions granted to other investment companies
that are organized in a similar manner as the Trust) is intended to facilitate
the efficient supervision and management of the sub-advisors by ASISI,
Prudential Investments LLC and the Trustees. The Trust is required, under the
terms of the exemption, to provide certain information to shareholders following
these types of changes. We may add new Sub-accounts that invest in a series of
underlying funds other than the Trust that is managed by an affiliate. Such
series of funds may have a similar order from the SEC. You also should review
the prospectuses for the other underlying funds in which various Sub-accounts
invest as to whether they have obtained similar orders from the SEC.
MATERIAL CONFLICTS
It is possible that differences may occur between companies that offer shares of
an underlying mutual fund portfolio to their respective separate accounts
issuing variable annuities and/or variable life insurance products. Differences
may also occur surrounding the offering of an underlying mutual fund portfolio
to variable life insurance policies and variable annuity contracts that we
offer. Under certain circumstances, these differences could be considered
"material conflicts," in which case we would take necessary action to protect
persons with voting rights under our variable annuity contracts and variable
life insurance policies against persons with voting rights under other insurance
companies' variable insurance products. If a "material conflict" were to arise
between owners of variable annuity contracts and variable life insurance
policies issued by us we would take necessary action to treat such persons
equitably in resolving the conflict. "Material conflicts" could arise due to
differences in voting instructions between owners of variable life insurance and
variable annuity contracts of the same or different companies. We monitor any
potential conflicts that may exist.
91
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
General Information continued
SERVICE FEES PAYABLE TO AMERICAN SKANDIA
American Skandia or our affiliates have entered into agreements with the
investment adviser or distributor of the underlying Portfolios. Under the terms
of these agreements, American Skandia may provide administrative and support
services to the Portfolios for which it receives a fee of up to 0.75%
(currently) of the average assets allocated to the Portfolios under the Annuity
from the investment advisor, distributor and/or the fund. These agreements may
be different for each underlying mutual fund whose portfolios are offered as
Sub-accounts.
In addition, the investment adviser, sub-advisor or distributor of the
underlying Portfolios may also compensate us by providing reimbursement or
paying directly for, among other things, marketing and/or administrative
services and/or other services they provide in connection with the Annuity.
These services may include, but are not limited to: co-sponsoring various
meetings and seminars attended by broker-dealer firms' registered
representatives and creating marketing material discussing the Annuity and the
available options.
WHO DISTRIBUTES ANNUITIES OFFERED BY AMERICAN SKANDIA?
American Skandia Marketing, Incorporated ("ASM"), a wholly-owned subsidiary of
American Skandia, Inc., is the distributor and principal underwriter of the
securities offered through this prospectus. ASM acts as the distributor of a
number of annuity and life insurance products we offer and co-distributor of
American Skandia Trust and American Skandia Advisor Funds, Inc., a family of
retail mutual funds. ASM also acts as an introducing broker-dealer through which
it receives a portion of brokerage commissions in connection with purchases and
sales of securities held by portfolios of American Skandia Trust which are
offered as underlying investment options under the Annuity.
ASM's principal business address is One Corporate Drive, Shelton,
Connecticut 06484. ASM is registered as broker-dealer under the Securities
Exchange Act of 1934 ("Exchange Act") and is a member of the National
Association of Securities Dealers, Inc. ("NASD").
The Annuity is offered on a continuous basis. ASM enters into distribution
agreements with broker-dealers who are registered under the Exchange Act and
with entities that may offer the Annuity but are exempt from registration
("firms"). Applications for the Annuity are solicited by registered
representatives of those firms. Such representatives will also be our appointed
insurance agents under state insurance law. In addition, ASM may offer the
Annuity directly to potential purchasers.
Commissions may be paid based on Account Value. The maximum commission to
be paid in connection with the sale is 0.30% per year of the Account Value. We
may also provide compensation to the distributing firm for providing ongoing
service to you in relation to the Annuity. Commissions and other compensation
paid in relation to the Annuity do not result in any additional charge to you or
to the Separate Account.
In addition, in an effort to promote the sale of our products, (which may
include the placement of American Skandia and/or the Annuity on a preferred or
recommended company or product list and/or access to the firm's registered
representatives) we or ASM may enter into compensation arrangements with certain
broker-dealer firms with respect to certain or all registered representatives of
such firms under which such firms may receive separate compensation or
reimbursement for, among other things, training of sales personnel, marketing
and/or administrative services and/or other services they provide. These
services may include, but are not limited to: educating customers of the firm on
the Annuity's features; conducting due diligence and analysis, providing office
access, operations and systems support; holding seminars intended to educate the
firm's registered representatives and make them more knowledgeable about the
Annuity; providing a dedicated marketing coordinator; providing priority sales
desk support; and providing expedited marketing compliance approval and
preferred programs to ASM. To the extent permitted by NASD rules and other
applicable laws and regulations, ASM may pay or allow other promotional
incentives or payments in the form of cash or non-cash compensation. These
arrangements may not be offered to all firms and the terms of such arrangements
may differ between firms. A list of the firms to whom American Skandia pays an
amount of greater than $10,000 for these arrangements is provided in the
Statement of Additional Information, which is available upon request. You should
note that firms and individual registered representatives and branch managers
within some firms participating in one of these compensation arrangements might
receive greater compensation for selling the Annuity than for selling a
different annuity that is not eligible for these compensation arrangements.
While compensation is generally taken into account as an expense in considering
the charges applicable to an annuity product, any such compensation will be paid
by us or ASM and will not result in any additional charge to you. Overall
compensation paid to the distributing firm does not exceed, based on actuarial
assumptions, 8.5% of the total Purchase Payments made. Your registered
representative can provide you with more information about the compensation
arrangements that apply upon the sale of the Annuity.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
American Skandia publishes annual and quarterly reports that are filed with the
SEC. These reports contain financial information about American Skandia that is
annually audited by an independent registered public accounting firm. American
Skandia's annual report for the year ended December 31, 2004, together with
subsequent
92
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
periodic reports that American Skandia files with the SEC, are incorporated by
reference into this prospectus. You can obtain copies, at no cost, of any and
all of this information, including the American Skandia annual report that is
not ordinarily mailed to contract owners, the more current reports and any
subsequently filed documents at no cost by contacting us at American Skandia --
Variable Annuities; P.O. Box 7960, Philadelphia, PA 19176 (Telephone:
203-926-1888). The SEC file number for American Skandia is 33-44202. You may
read and copy any filings made by American Skandia with the SEC at the SEC's
Public Reference Room at 450 Fifth Street, Washington, D.C. 20549-0102. You can
obtain information on the operation of the Public Reference Room by calling
(202) 942-8090. The SEC maintains an Internet site that contains reports, proxy
and information statements, and other information regarding issuers that file
electronically with the SEC at http://www.sec.gov.
FINANCIAL STATEMENTS
The financial statements of the separate account and American Skandia Life
Assurance Corporation are included in the Statement of Additional Information.
HOW TO CONTACT US
You can contact us by:
- - calling our Customer Service Team at 1-800-752-6342 during our normal
business hours, 8:30 a.m., EST to 8:00 p.m. EST, Monday through Friday, or
Skandia's telephone automated response system at 1-800-766-4530.
- - writing to us via regular mail at American Skandia -- Variable Annuities,
P.O. Box 7960, Philadelphia, PA 19176 OR for express mail American Skandia
-- Variable Annuities, 2101 Welsh Road, Dresher, PA 19025. NOTE: Failure
to send mail to the proper address may result in a delay in our receiving
and processing your request.
- - sending an email to service@prudential.com or visiting our Internet
Website at www.americanskandia.prudential.com
- - accessing information about your Annuity through our Internet Website at
www.americanskandia.prudential.com
You can obtain account information by calling our automated response
system, and at www.americanskandia.prudential.com, our Internet Website. Our
Customer Service representatives are also available during business hours to
provide you with information about your account. You can request certain
transactions through our telephone voice response system, our Internet Website
or through a customer service representative. You can provide authorization for
a third party, including your attorney- in-fact acting pursuant to a power of
attorney or an investment professional, to access your account information and
perform certain transactions on your account. You will need to complete a form
provided by us which identifies those transactions that you wish to authorize
via telephonic and electronic means and whether you wish to authorize a third
party to perform any such transactions. Please note that unless you tell us
otherwise, we deem that all transactions that are directed by your investment
professional with respect to your Annuity have been authorized by you. We
require that you or your representative provide proper identification before
performing transactions over the telephone or through our Internet Website. This
may include a Personal Identification Number (PIN) that will be provided to you
upon issue of your Annuity or you may establish or change your PIN by calling
our automated response system, www.americanskandia.prudential.com, our Internet
Website. Any third party that you authorize to perform financial transactions on
your account will be assigned a PIN for your account.
Transactions requested via telephone are recorded. To the extent permitted
by law, we will not be responsible for any claims, loss, liability or expense in
connection with a transaction requested by telephone or other electronic means
if we acted on such transaction instructions after following reasonable
procedures to identify those persons authorized to perform transactions on your
Annuity using verification methods which may include a request for your Social
Security number, PIN or other form of electronic identification. We may be
liable for losses due to unauthorized or fraudulent instructions if we did not
follow such procedures.
American Skandia does not guarantee access to telephonic, facsimile,
Internet or any other electronic information or that we will be able to accept
transaction instructions via such means at all times. Regular and/or express
mail will be the only means by which we will accept transaction instructions
when telephonic, facsimile, Internet or any other electronic means are
unavailable or delayed. American Skandia reserves the right to limit, restrict
or terminate telephonic, facsimile, Internet or any other electronic transaction
privileges at any time.
93
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
General Information continued
INDEMNIFICATION
Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the "Securities Act") may be permitted to directors, officers or persons
controlling the registrant pursuant to the foregoing provisions, the registrant
has been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in the Securities Act and is therefore unenforceable.
LEGAL PROCEEDINGS
As of the date of this Prospectus, American Skandia and its affiliates are not
involved in any legal proceedings outside of the ordinary course of business.
American Skandia and its affiliates are involved in pending and threatened legal
proceedings in the normal course of its business, however, we do not anticipate
that the outcome of any such legal proceedings will have a material adverse
affect on the Separate Account, or American Skandia's ability to meet its
obligations under the Annuity, or on the distribution of the Annuity.
CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION
The following are the contents of the Statement of Additional Information:
General Information about American Skandia
- - American Skandia Life Assurance Corporation
- - American Skandia Life Assurance Corporation Variable Account B
- - American Skandia Life Assurance Corporation Separate Account D
Principal Underwriter/Distributor -- American Skandia Marketing, Incorporated
Payments made to Promote Sale of Our Products
How the Unit Price is Determined
Additional Information on Fixed Allocations
- - How We Calculate the Market Value Adjustment
General Information
- - Voting Rights
- - Modification
- - Deferral of Transactions
- - Misstatement of Age or Sex
- - Ending the Offer
Annuitization
Experts
Legal Experts
Financial Statements
94
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B
Separate Account B consists of multiple Sub-accounts. Each Sub-account invests
only in a single mutual fund or mutual fund portfolio. All or some of these
Sub-accounts are available as investment options for other variable annuities we
offer pursuant to different prospectuses.
UNIT PRICES AND NUMBERS OF UNITS: The following table shows: (a) the Unit Price,
as of the dates shown, for Units in each of the Sub-accounts of Separate Account
B that are being offered pursuant to this Prospectus; and (b) the number of
Units outstanding for each such Sub-account as of the dates shown. Since
November 18, 2002, we have been determining, on a daily basis, multiple Unit
Prices for each Sub-account of Separate Account B. We compute multiple Unit
Prices because several of our variable annuities invest in the same
Sub-accounts, and these annuities deduct varying charges that correspond to each
combination of the applicable Insurance Charge, Distribution Charge (when
applicable) and the charges for each optional benefit. Where an asset-based
charge corresponding to a particular Sub-account within a new annuity product is
identical to that in the same Sub-account within an existing annuity, the Unit
Price for the new annuity will be identical to that of the existing annuity. In
such cases, we will for reference purposes depict, in the condensed financial
information for the new annuity, Unit Prices of the existing annuity. The year
in which operations commenced in each such Sub-account is noted in parentheses.
To the extent a Sub-account commenced operations during a particular calendar
year, the Unit Price as of the end of the period reflects only the partial year
results from the commencement of operations until December 31st of the
applicable year. When a Unit Price was first calculated for a particular
Sub-account, we set the price of that Unit at $10.00 per Unit. Thereafter, Unit
Prices vary based on market performance. Unit Prices and Units are provided for
Sub-accounts that commenced operations prior to January 1, 2005.
A-1
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
---------- ---------- ---------- ---------- ----------
AST JPMORGAN INTERNATIONAL EQUITY (1993)
WITH NO OPTIONAL BENEFITS
UNIT PRICE $ 19.19 $ 16.49 $ 12.71 $ 15.68 $ 20.44
NUMBER OF UNITS 239,273 219,979 254,902 332,333 481,172
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.97 $ 12.90 $ 9.96 -- --
Number of Units 32,193 15,315 10 -- --
With GMWB
Unit Price $ 18.02 $ 15.54 -- -- --
Number of Units 340,083 425,263 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Value $ 14.8882 -- -- -- --
Number of Units 1339.77647 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 8.24 $ 7.13 -- -- --
Number of Units 553,542 362,254 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 29.04 $ 25.15 $ 19.53 -- --
Number of Units 9,357,235 10,947,011 14,140,023 -- --
With HAV, EBP and GMWB
Unit Value $ 14.78 $ 12.81 -- -- --
Number of Units 192,576 57,874 -- -- --
AST WILLIAM BLAIR INTERNATIONAL GROWTH (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 16.65 $ 14.43 $ 10.37 $ 14.04 $ 18.48
Number of Units 1,259,678 536,475 371,174 539,241 792,703
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.55 $ 13.51 -- -- --
Number of Units 84,493 20,709 -- -- --
With GMWB
Unit Price $ 16.21 $ 14.10 -- -- --
Number of Units 1,562,369 879,869 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.46244 $ 13.47 -- -- --
Number of Units 1727.50872 735 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 16.42 $ 14.32 -- -- --
Number of Units 1,953,908 1,166,396 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 15.69 $ 13.70 $ 9.92 -- --
Number of Units 45,657,801 29,706,745 29,062,215 -- --
With HAV, EBP and GMWB
Unit Value $ 15.35 $ 13.41 -- -- --
Number of Units 1,986,105 470,320 -- -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ---------- ----------
AST JPMORGAN INTERNATIONAL EQUITY (1993)
WITH NO OPTIONAL BENEFITS
UNIT PRICE $ 27.98 $ 17.16 $ 14.38 $ 12.27 $ 11.29 $ 10.36
NUMBER OF UNITS 425,100 485,513 477,264 408,066 452,589 199,313
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST WILLIAM BLAIR INTERNATIONAL GROWTH (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 24.68 $ 13.6 $ 11.78 -- -- --
Number of Units 962,018 729,573 235,801 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-2
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
----------- ----------- ------------ ---------- ----------
AST LSV INTERNATIONAL VALUE (1995)
WITH NO OPTIONAL BENEFITS
UNIT PRICE $ 14.86 $ 12.36 $ 9.29 $ 11.27 $ 16.73
Number of Units 275,575 283,809 200,531 232,142 344,664
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.60 $ 13.01 -- -- --
Number of Units 3,559 2,066 -- -- --
With GMWB
Unit Price $ 14.44 $ 12.05 -- -- --
Number of Units 250,064 287,328 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With any one of EBP or HAV and GM WB
Unit Value $ 7.01 $ 5.86 -- -- --
Number of Units 233,045 91,736 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 13.89 $ 11.64 $ 8.81 -- --
Number of Units 8,761,943 9,705,366 10,185,535 -- --
With HAV, EBP and GMWB
Unit Value $ 15.40 $ 12.92 -- -- --
Number of Units 76,147 20,245 -- -- --
AST MFS GLOBAL EQUITY (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.78 $ 10.01 $ 7.93 $ 9.09 $ 10.17
Number of Units 392,469 126,748 114,507 47,989 11,623
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.60 $ 12.45 -- -- --
Number of Units 22,226 3,213 -- -- --
With GMWB
Unit Price $ 11.56 $ 9.87 -- -- --
Number of Units 256,952 232,362 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.52599 $ 12.41 -- -- --
Number of Units 141.049939 117 -- -- --
With any one of EBP or HAV and GM WB
Unit Value $ 10.98 $ 9.40 -- -- --
Number of Units 213,485 123,219 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 11.32 $ 9.70 $ 7.74 -- --
Number of Units 7,680,830 6,790,405 5,878,055 -- --
With HAV, EBP and GMWB
Unit Value $ 14.42 $ 12.36 -- -- --
Number of Units 143,889 34,777 -- -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
---------- ---------- ---------- ---------- ---------- ----
AST LSV INTERNATIONAL VALUE (1995)
WITH NO OPTIONAL BENEFITS
Unit Price $ 24.16 $ 12.82 $ 11.63 $ 11.49 $ 10.27 --
Number of Units 274,671 230,548 203,237 278,460 137,991 --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GM WB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST MFS GLOBAL EQUITY (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.03 -- -- -- -- --
Number of Units 213 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-3
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICET 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ----------------------------------------- -------------- -------------- -------------- -------------- ---------------
AST STATE STREET RESEARCH SMALL-CAP
GROWTH(1)
WITH NO OPTIONAL BENEFITS
Unit Price $ 18.07 $ 19.55 $ 13.55 $ 20.79 $ 22.37
Number of Units 150,542 208,990 242,006 337,538 369,812
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.59 $ 13.66 $ 9.49 -- --
Number of Units 4,127 4,362 5 -- --
With GMWB
Unit Price $ 15.24 $ 16.55 -- -- --
Number of Units 457,541 677,748 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 15.97 $ 17.38 -- -- --
Number of Units 107,136 145,364 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 16.86 $ 18.37 $ 12.83 -- --
Number of Units 10,017,372 14,111,281 17,093,250 -- --
With HAV, EBP and GMWB
Unit Value $ 12.43 $ 13.56 -- -- --
Number of Units 82,128 52,103 -- -- --
AST DEAM SMALL-CAP GROWTH (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.07 $ 9.27 $ 6.32 $ 8.65 $ 12.16
Number of Units 411,807 574,817 493,736 711,997 727,887
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.43 $ 14.22 $ 9.73 -- --
Number of Units 6,072 3,583 1,705 -- --
With GMWB
Unit Price $ 9.86 $ 9.10 -- -- --
Number of Units 696,332 853,542 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.34424 -- -- -- --
Number of Units 681.433554 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 7.41 $ 6.86 -- -- --
Number of Units 293,384 258,089 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 9.63 $ 8.92 $ 6.13 -- --
Number of Units 28,867,491 38,960,912 44,042,514 -- --
With HAV, EBP and GMWB
Unit Value $ 15.23 $ 14.13 -- -- --
Number of Units 78,039 27,101 -- -- --
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- --------------------------------------- ---------- ---------- ---------- ---------- ---------- ---------
AST STATE STREET RESEARCH SMALL-CAP
GROWTH (1)
WITH NO OPTIONAL BENEFITS
Unit Price $ 43.43 $ 18.07 $ 17.57 $ 16.71 $ 14.04 $ 10.69
Number of Units 690,331 506,384 399,262 271,845 221,840 96,278
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST DEAM SMALL-CAP GROWTH (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 15.49 -- -- -- -- --
Number of Units 608,042 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-4
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICET 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ----------------------------------------------------------------------------------------------------
AST FEDERATED AGGRESSIVE GROWTH (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.38 $ 8.49 $ 5.04 $ 7.17
Number of Units 477,568 322,365 276,968 212,523
With any one of GRO Plus, EBP or HAV
Unit Price $ 20.22 $ 16.58 -- --
Number of Units 19,826 6,887 -- --
With GMWB
Unit Price $ 10.23 $ 8.40 -- --
Number of Units 364,887 339,964 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 20.1158 $ 16.54 -- --
Number of Units 1299.90704 211 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.12 $ 8.33 -- --
Number of Units 1,169,995 859,909 -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.06 $ 8.29 $ 4.96 --
Number of Units 9,987,085 9,773,467 5,188,521 --
With HAV, EBP and GMWB
Unit Value $ 19.97 $ 16.47 -- --
Number of Units 633,435 164,946 -- --
AST GOLDMAN SACHS SMALL-CAP VALUE (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 23.85 $ 19.98 $ 14.25 $ 15.58
Number of Units 276,076 396,816 572,355 943,242
With any one of GRO Plus, EBP or HAV
Unit Price $ 16.83 $ 14.13 -- --
Number of Units 4,003 4,263 -- --
With GMWB
Unit Price $ 23.27 $ 19.56 -- --
Number of Units 409,460 602,009 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 16.73813 -- -- --
Number of Units 1591.29724 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 20.52 $ 17.29 -- --
Number of Units 28,076 35,022 -- --
With HAV, EBP and GRO Plus
Unit Price $ 22.62 $ 19.09 $ 13.72 --
Number of Units 11,890,819 15,281,632 20,004,839 --
With HAV, EBP and GMWB
Unit Value $ 16.61 $ 14.03 -- --
Number of Units 17 75 -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------
AST FEDERATED AGGRESSIVE GROWTH (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.09 -- -- -- -- -- --
Number of Units 8,370 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AST GOLDMAN SACHS SMALL-CAP VALUE (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 14.27 $ 10.73 $ 9.93 -- -- -- --
Number of Units 362,487 133,145 65,255 -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-5
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICET 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- -------------------------------------------------------------------------------------------------------
AST SMALL-CAP VALUE (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 20.52 $ 17.74 $ 13.15 $ 14.61
Number of Units 607,239 730,928 680,968 979,765
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.67 $ 13.58 $ 10.09 --
Number of Units 57,772 26,249 1,652 --
With GMWB
Unit Price $ 19.98 $ 17.33 -- --
Number of Units 768,148 920,213 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.589 $ 13.54 -- --
Number of Units 1343.17981 471 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 16.64 $ 14.47 -- --
Number of Units 1,293,786 962,965 -- --
With HAV, EBP and GRO Plus
Unit Price $ 19.34 $ 16.84 $ 12.58 --
Number of Units 24,679,683 29,340,189 32,549,396 --
With HAV, EBP and GMWB
Unit Value $ 15.47 $ 13.49 -- --
Number of Units 1,067,140 344,340 -- --
AST DEAM SMALL-CAP VALUE (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.34 $ 11.00 $ 7.72 --
Number of Units 118,424 110,748 22,404 --
With any one of GRO Plus, EBP or HAV
Unit Price $ 17.36 $ 14.35 -- --
Number of Units 15,274 501 -- --
With GMWB
Unit Price $ 13.22 $ 10.93 -- --
Number of Units 130,939 74,344 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 17.27205 -- -- --
Number of Units 2044.11926 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 13.13 $ 10.89 -- --
Number of Units 138,078 131,066 -- --
With HAV, EBP and GRO Plus
Unit Price $ 13.07 $ 10.86 $ 7.68 --
Number of Units 3,380,290 2,104,855 581,833 --
With HAV, EBP and GMWB
Unit Value $ 17.14 $ 14.25 -- --
Number of Units 91,275 30,696 -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------------------------------------------------------------------------
AST SMALL-CAP VALUE (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.74 $ 11.35 $ 11.36 $ 12.78 -- -- --
Number of Units 594,074 570,268 895,422 771,770 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AST DEAM SMALL-CAP VALUE (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-6
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICET 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- --------------------------------------------------------------------------------------------------------------
AST GOLDMAN SACHS MID-CAP GROWTH (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 4.28 $ 3.70 $ 2.83 $ 3.93 $ 6.61
Number of Units 585,234 408,709 162,029 373,853 159,879
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.87 $ 12.89 -- -- --
Number of Units 22,741 17,091 -- -- --
With GMWB
Unit Price $ 4.21 $ 3.65 -- -- --
Number of Units 511,677 450,688 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.78765 $ 12.86 -- -- --
Number of Units 726.514355 382 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 4.44 $ 3.87 -- -- --
Number of Units 2,232,502 1,535,565 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 4.13 $ 3.60 $ 2.78 -- --
Number of Units 22,942,466 21,856,921 16,748,577 -- --
With HAV, EBP and GMWB
Unit Value $ 14.68 $ 12.81 -- -- --
Number of Units 633,571 170,457 -- -- --
AST NEUBERGER BERMAN MID-CAP GROWTH (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 20.32 $ 17.62 $ 13.59 $ 19.88 $ 26.97
Number of Units 340,048 273,193 323,369 477,410 301,210
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.17 $ 12.32 -- -- --
Number of Units 10,856 7,930 -- -- --
With GMWB
Unit Price $ 19.33 $ 16.83 -- -- --
Number of Units 291,783 360,730 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.09684 -- -- -- --
Number of Units 243.74115 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 7.14 $ 6.23 -- -- --
Number of Units 555,160 371,267 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 18.94 $ 16.55 $ 12.86 -- --
Number of Units 14,682,452 17,346,127 19,674,777 -- --
With HAV, EBP and GMWB
Unit Value $ 13.99 $ 12.24 -- -- --
Number of Units 238,963 96,132 -- -- --
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------
AST Goldman Sachs Mid-Cap Growth (2000)
With No Optional Benefits
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST NEUBERGER BERMAN MID-CAP GROWTH (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 29.53 $ 19.63 $ 16.38 $ 14.15 $ 12.27 $ 9.95
Number of Units 91,314 94,905 104,340 100,758 89,474 3,419
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-7
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICET 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ------------------------------------------------------------------------------------------------------------------
AST NEUBERGER BERMAN MID-CAP VALUE (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 29.33 $ 24.04 $ 17.75 $ 19.97 $ 20.73
Number of Units 726,167 653,342 765,716 778,257 619,565
With any one of GRO Plus, EBP or HAV
Unit Price $ 16.43 $ 13.50 $ 9.99 -- --
Number of Units 60,433 31,506 5 -- --
With GMWB
Unit Price $ 28.87 $ 23.74 -- -- --
Number of Units 773,869 905,217 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 16.34002 $ 13.46 -- -- --
Number of Units 2465.17875 183 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 16.76 $ 13.82 -- -- --
Number of Units 1,116,503 781,348 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 28.95 $ 23.90 $ 17.78 -- --
Number of Units 29,107,559 32,561,133 37,524,187 -- --
With HAV, EBP and GMWB
Unit Value $ 16.22 $ 13.40 -- -- --
Number of Units 989,311 268,150 -- -- --
AST ALGER ALL-CAP GROWTH (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.21 $ 4.83 $ 3.59 $ 5.63 $ 6.8
Number of Units 487,430 564,609 624,243 1,351,204 168,813
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.53 $ 12.59 -- -- --
Number of Units 4,448 2,195 -- -- --
With GMWB
Unit Price $ 5.12 $ 4.76 -- -- --
Number of Units 1,788,021 2,563,376 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 6.49 $ 6.06 -- -- --
Number of Units 214,092 200,264 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 5.01 $ 4.69 $ 3.51 -- --
Number of Units 56,424,612 75,107,237 85,441,507 -- --
With HAV, EBP and GMWB
Unit Value $ 13.36 $ 12.50 -- -- --
Number of Units 123,773 34,250 -- -- --
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- ----------------------------------------------------------------------------------------------------------------------
AST NEUBERGER BERMAN MID-CAP VALUE (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 16.37 $ 15.59 $ 16.07 $ 12.81 $ 11.59 $ 9.27
Number of Units 385,591 218,024 260,929 103,416 164,976 86,555
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST ALGER ALL-CAP GROWTH (2000)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-8
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ------------------------------------------- ------------ ------------ ------------ ----------
AST GABELLI ALL-CAP VALUE (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.93 $ 10.41 $ 7.71 $ 9.79
Number of Units 214,855 268,077 201,049 267,724
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.47 $ 13.54 -- --
Number of Units 16,033 12,144 -- --
With GMWB
Unit Price $ 11.75 $ 10.30 -- --
Number of Units 400,981 436,340 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.38657 -- -- --
Number of Units 531.230157 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.63 $ 10.21 -- --
Number of Units 256,401 140,873 -- --
With HAV, EBP and GRO Plus
Unit Price $ 11.56 $ 10.16 $ 7.59 --
Number of Units 10,602,164 12,585,857 11,924,124 --
With HAV, EBP and GMWB
Unit Value $ 15.27 $ 13.44 -- --
Number of Units 122,314 33,721 -- --
AST T. ROWE PRICE NATURAL RESOURCES (1995)
WITH NO OPTIONAL BENEFITS
Unit Price $ 33.46 $ 25.68 $ 19.36 $ 20.62
Number of Units 203,341 203,866 108,448 113,440
With any one of GRO Plus, EBP or HAV
Unit Price $ 17.98 $ 13.83 $ 10.45 --
Number of Units 43,046 8,843 2,880 --
With GMWB
Unit Price $ 32.52 $ 25.04 -- --
Number of Units 130,930 162,133 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 17.88367 -- -- --
Number of Units 1544.35639 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 17.81 $ 13.75 -- --
Number of Units 192,336 75,013 -- --
With HAV, EBP and GRO Plus
Unit Price $ 31.27 $ 24.17 $ 18.36 --
Number of Units 5,064,556 5,185,874 5,891,582 --
With HAV, EBP and GMWB
Unit Value $ 17.75 $ 13.74 -- --
Number of Units 148,837 20,929 -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ------------------------------------------- ---------- ---------- ---------- ---------- ---------- --------- ----
AST GABELLI ALL-CAP VALUE (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.08 -- -- -- -- -- --
Number of Units 54,033 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AST T. ROWE PRICE NATURAL RESOURCES (1995)
WITH NO OPTIONAL BENEFITS
Unit Price $ 20.61 $ 16.37 $ 12.86 $ 14.68 $ 14.31 $ 11.04 --
Number of Units 108,081 106,822 109,887 114,880 140,275 27,379 --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-9
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ----------------------------- ------------ ------------ ------------ ----------
AST ALLIANCE GROWTH 2 (1996)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.47 $ 12.82 $ 10.43 $ 15.21
Number of Units 90,747 108,170 210,924 300,536
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.01 $ 11.46 -- --
Number of Units 15,248 1,374 -- --
With GMWB
Unit Price $ 13.10 $ 12.51 -- --
Number of Units 252,570 366,972 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 11.95016 -- -- --
Number of Units 138.694377 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 6.19 $ 5.93 -- --
Number of Units 326,194 263,698 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.65 $ 12.13 $ 9.94 --
Number of Units 12,184,469 15,868,913 21,295,907 --
With HAV, EBP and GMWB
Unit Value $ 11.86 $ 11.39 -- --
Number of Units 70,775 28,954 -- --
AST MFS GROWTH (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 7.81 $ 7.10 $ 5.82 $ 8.15
Number of Units 601,222 596,050 643,644 892,954
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.66 $ 11.54 -- --
Number of Units 12,399 8,159 -- --
With GMWB
Unit Price $ 7.67 $ 7.00 -- --
Number of Units 935,270 1,225,710 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 12.59473 $ 11.51 -- --
Number of Units 165.334231 88 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 7.04 $ 6.44 -- --
Number of Units 791,823 893,170 -- --
With HAV, EBP and GRO Plus
Unit Price $ 7.51 $ 6.88 $ 5.68 --
Number of Units 55,056,292 71,618,196 85,193,279 --
With HAV, EBP and GMWB
Unit Value $ 12.50 $ 11.47 -- --
Number of Units 305,582 188,109 -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ----------------------------- ---------- ---------- ---------- ---------- ---------- ---- ----
AST ALLIANCE GROWTH (2)(1996)
WITH NO OPTIONAL BENEFITS
Unit Price $ 17.95 $ 20.95 $ 15.75 $ 12.45 $ 10.92 -- --
Number of Units 218,749 183,376 193,822 199,511 119,830 -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AST MFS GROWTH (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.48 $ 11.29 -- -- -- -- --
Number of Units 93,890 10,558 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-10
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ---------------------------------- ------------ ------------ ------------ ------------ ------------
AST MARSICO CAPITAL GROWTH (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 17.88 $ 15.56 $ 11.89 $ 14.17 $ 18.22
Number of Units 1,855,254 1,583,309 1,177,309 1,151,083 1,258,964
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.26 $ 12.44 $ 9.53 -- --
Number of Units 182,733 78,388 6,555 -- --
With GMWB
Unit Price $ 17.44 $ 15.23 -- -- --
Number of Units 1,886,570 2,044,281 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.1802 $ 12.40 -- -- --
Number of Units 7159.85177 1,626 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.67 $ 8.46 -- -- --
Number of Units 5,717,404 4,075,719 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 16.95 $ 14.86 $ 11.44 -- --
Number of Units 69,411,260 77,042,171 81,046,482 -- --
With HAV, EBP and GMWB
Unit Value $ 14.07 $ 12.35 -- -- --
Number of Units 3,543,456 1,021,520 -- -- --
AST GOLDMAN SACHS CONCENTRATED GROWTH (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 22.68 $ 22.02 $ 17.69 $ 25.38 $ 37.39
Number of Units 225,304 282,942 397,460 760,500 853,950
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.08 $ 11.76 -- -- --
Number of Units 1,989 2,768 -- -- --
With GMWB
Unit Price $ 21.22 $ 20.67 -- -- --
Number of Units 901,202 1,145,694 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 12.01829 -- -- -- --
Number of Units 239.794513 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 4.68 $ 4.57 -- -- --
Number of Units 733,920 604,491 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 24.21 $ 23.68 $ 19.17 -- --
Number of Units 35,447,067 44,566,515 56,016,467 -- --
With HAV, EBP and GMWB
Unit Value $ 11.93 $ 11.68 -- -- --
Number of Units 162,830 30,932 -- -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- ---------------------------------- ---------- ---------- ---------- ---------- ---------- -----------
AST MARSICO CAPITAL GROWTH (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 21.39 $ 14.11 $ 10.03 -- -- --
Number of Units 935,502 739,559 12,993 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST GOLDMAN SACHS CONCENTRATED GROWTH (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 54.52 $ 35.4 $ 21.18 $ 16.59 $ 13.04 $ 9.54
Number of Units 853,471 823,116 666,835 574,520 384,701 187,924
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-11
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-----------------------------------------
SUB-ACCOUNT 2004 2003 2002
- -------------------------------- ------------ ----------- -----------
AST DEAM LARGE-CAP VALUE (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.47 $ 9.77 $ 7.77
Number of Units 188,892 139,126 80,618
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.68 $ 12.53 --
Number of Units 32,263 1,875 --
With GMWB
Unit Price $ 11.30 $ 9.66 --
Number of Units 138,443 122,564 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.59683 $ 12.50 --
Number of Units 106.87389 107 --
With any one of EBP or HAV and GMWB
Unit Value $ 11.18 $ 9.58 --
Number of Units 191,637 85,554 --
With HAV, EBP and GRO Plus
Unit Price $ 11.11 $ 9.54 $ 7.64
Number of Units 6,242,941 4,752,102 4,621,831
With HAV, EBP and GMWB
Unit Value $ 14.49 $ 12.45 --
Number of Units 114,540 40,259 --
AST Alliance/Bernstein Growth + Value (3)(2001)
With No Optional Benefits
Unit Price $ 9.88 $ 9.03 $ 7.21
Number of Units 115,998 42,479 24,048
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.36 $ 12.25 --
Number of Units 6,731 1,360 --
With GMWB
Unit Price $ 9.75 $ 8.95 --
Number of Units 111,211 121,535 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.66 $ 8.89 --
Number of Units 194,363 137,293 --
With HAV, EBP and GRO Plus
Unit Price $ 9.61 $ 8.85 $ 7.12
Number of Units 3,645,930 4,017,495 3,031,899
With HAV, EBP and GMWB
Unit Value $ 13.19 $ 12.16 --
Number of Units 71,486 29,927 --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- -------------------------------- ---------- --------- ---- ---- ---- ---- ---- ---
AST DEAM LARGE-CAP VALUE (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.23 $ 9.84 -- -- -- -- -- --
Number of Units 63,553 50,761 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
AST ALLIANCE/BERNSTEIN GROWTH + VALUE 3 (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.68 -- -- -- -- -- -- --
Number of Units 24,134 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-12
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ----------------------------------------- ------------- ------------ ------------- ------------
AST SANFORD BERNSTEIN CORE VALUE (4)(2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.55 $ 11.09 $ 8.7 $ 10.1
Number of Units 461,239 387,468 305,648 54,784
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.49 $ 12.83 -- --
Number of Units 22,129 11,689 -- --
With GMWB
Unit Price $ 12.39 $ 10.99 -- --
Number of Units 563,995 403,537 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.41109 $ 12.80 -- --
Number of Units 2439.73218 322 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.28 $ 10.91 -- --
Number of Units 603,508 453,569 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.21 $ 10.87 $ 8.59 --
Number of Units 10,727,241 9,178,786 15,239,844 --
With HAV, EBP and GMWB
Unit Value $ 14.30 $ 12.75 -- --
Number of Units 243,464 91,128 -- --
AST COHEN & STEERS REALTY (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 20.73 $ 15.12 $ 11.08 $ 10.86
Number of Units 481,197 507,911 317,670 345,833
With any one of GRO Plus, EBP or HAV
Unit Price $ 19.25 $ 14.08 $ 10.34 --
Number of Units 56,156 33,818 4,595 --
With GMWB
Unit Price $ 20.22 $ 14.81 -- --
Number of Units 316,484 414,634 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 19.14795 -- -- --
Number of Units 863.280926 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 22.03 $ 16.17 -- --
Number of Units 281,181 149,582 -- --
With HAV, EBP and GRO Plus
Unit Price $ 19.66 $ 14.45 $ 10.67 --
Number of Units 12,347,410 13,914,477 14,017,528 --
With HAV, EBP and GMWB
Unit Value $ 19.00 $ 13.99 -- --
Number of Units 304,865 61,714 -- --
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ----------------------------------------- ----------- ---------- --------- ---- ---- ---- ----
AST SANFORD BERNSTEIN CORE VALUE 4 (2001)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AST COHEN & STEERS REALTY (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.63 $ 8.48 $ 8.35 -- -- -- --
Number of Units 335,316 232,305 91,685 -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-13
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ------------------------------------------- ------------ ------------ ------------ ----------
AST SANFORD BERNSTEIN MANAGED INDEX 500 5
(1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.51 $ 12.36 $ 9.77 $ 12.4
Number of Units 1,028,912 907,807 711,077 691,458
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.51 $ 12.39 -- --
Number of Units 25,139 14,205 -- --
With GMWB
Unit Price $ 13.18 $ 12.10 -- --
Number of Units 721,916 824,390 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 8.99 $ 8.28 -- --
Number of Units 642,882 554,156 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.81 $ 11.81 $ 9.41 --
Number of Units 29,399,670 34,343,576 39,938,791 --
With HAV, EBP and GMWB
Unit Value $ 13.33 $ 12.31 -- --
Number of Units 220,398 82,843 -- --
AST AMERICAN CENTURY INCOME & GROWTH (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 15.20 $ 13.59 $ 10.62 $ 13.34
Number of Units 524,434 247,785 278,381 361,018
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.10 $ 12.64 -- --
Number of Units 45,234 579 -- --
With GMWB
Unit Price $ 14.80 $ 13.28 -- --
Number of Units 607,957 526,565 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.48 $ 8.52 -- --
Number of Units 613,910 339,653 -- --
With HAV, EBP and GRO Plus
Unit Price $ 14.33 $ 12.91 $ 10.16 --
Number of Units 22,392,584 19,177,690 22,410,834 --
With HAV, EBP and GMWB
Unit Value $ 13.92 $ 12.56 -- --
Number of Units 233,605 63,878 -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ------------------------------------------------ ----------- ----------- ----------- ---------- ---- ---- ----
AST SANFORD BERNSTEIN MANAGED INDEX 500 5 (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.86 $ 15.31 $ 12.71 -- -- -- --
Number of Units 523,132 262,088 222,115 -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AST AMERICAN CENTURY INCOME & GROWTH (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 14.66 $ 16.54 $ 13.54 $ 12.14 -- -- --
Number of Units 386,882 212,826 158,481 104,567 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-14
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ---------------------------------------- ------------- ------------ ------------ ------------ -----------
AST ALLIANCE GROWTH AND INCOME (6)(1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 27.83 $ 25.23 $ 19.18 $ 25.17 $ 25.45
Number of Units 881,766 772,571 781,774 1,063,471 824,148
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.21 $ 12.92 $ 9.84 -- --
Number of Units 149,444 75,316 6,376 -- --
With GMWB
Unit Price $ 23.87 $ 21.72 -- -- --
Number of Units 1,016,837 1,264,426 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.13634 $ 12.88 -- -- --
Number of Units 3866.4619 957 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.24 $ 10.25 -- -- --
Number of Units 4,119,501 3,076,626 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 30.46 $ 27.83 $ 21.31 -- --
Number of Units 38,178,893 46,013,553 49,030,576 -- --
With HAV, EBP and GMWB
Unit Value $ 14.03 $ 12.83 -- -- --
Number of Units 3,211,199 932,323 -- -- --
AST HOTCHKIS & WILEY LARGE-CAP VALUE
WITH NO OPTIONAL BENEFITS
Unit Price $ 23.29 $ 20.31 $ 17.04 $ 20.79 $ 22.89
Number of Units 269,303 244,888 274,957 421,855 458,422
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.48 $ 11.78 -- -- --
Number of Units 7,563 1,343 -- -- --
With GMWB
Unit Price $ 21.41 $ 18.73 -- -- --
Number of Units 826,374 1,102,775 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 13.40507 -- -- -- --
Number of Units 1075.13575 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.25 $ 8.99 -- -- --
Number of Units 417,314 204,589 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 21.73 $ 19.09 $ 16.14 -- --
Number of Units 23,642,429 29,269,249 37,055,825 -- --
With HAV, EBP and GMWB
Unit Value $ 13.30 $ 11.70 -- -- --
Number of Units 126,725 38,215 -- -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- ---------------------------------------- ------------ ----------- ----------- ----------- ----------- ------------
AST ALLIANCE GROWTH AND INCOME (6) (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 24.28 $ 21.05 $ 18.84 $ 15.32 $ 13.04 $ 10.21
Number of Units 771,705 666,925 700,150 671,510 498,080 238,128
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST HOTCHKIS & WILEY LARGE-CAP VALUE
WITH NO OPTIONAL BENEFITS
Unit Price $ 22 $ 19.82 $ 17.6 $ 14.38 $ 12.39 $ 9.62
Number of Units 291,589 317,432 287,286 283,889 293,340 150,719
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-15
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ---------------------------------------------- ------------ ------------ ------------ ---------- -----------
AST DEAM GLOBAL ALLOCATION 7 (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 19.24 $ 17.43 $ 14.68 $ 17.47 $ 19.92
Number of Units 64,342 87,241 100,537 149,042 172,245
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With GMWB
Unit Price $ 17.79 $ 16.18 -- -- --
Number of Units 185,361 244,970 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.55 $ 8.71 -- -- --
Number of Units 78,619 61,801 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 18.72 $ 17.09 $ 14.5 -- --
Number of Units 10,839,913 14,050,030 18,212,529 -- --
With HAV, EBP and GMWB
Unit Value $ 12.81 $ 11.70 -- -- --
Number of Units 16,079 1,832 -- -- --
AST AMERICAN CENTURY STRATEGIC BALANCED (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 16.05 $ 14.83 $ 12.56 $ 14 $ 14.65
Number of Units 121,891 191,980 128,128 182,487 106,849
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.70 $ 11.76 -- -- --
Number of Units 27,133 11,934 -- -- --
With GMWB
Unit Price $ 15.63 $ 14.48 -- -- --
Number of Units 180,248 236,617 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.56 $ 9.81 -- -- --
Number of Units 146,721 115,095 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 15.13 $ 14.08 $ 12.01 -- --
Number of Units 11,127,765 13,028,139 12,683,097 -- --
With HAV, EBP and GMWB
Unit Value $ 12.54 $ 11.68 -- -- --
Number of Units 102,109 30,366 -- -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- ---------------------------------------------- ----------- ----------- ----------- ----------- ------------ ------------
AST DEAM GLOBAL ALLOCATION 7 (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 20.97 $ 17.46 $ 15.57 $ 13.27 $ 12.04 $ 9.91
Number of Units 203,969 223,039 211,541 186,453 239,737 114,927
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST AMERICAN CENTURY STRATEGIC BALANCED (1997)
WITH NO OPTIONAL BENEFITS
Unit Price $ 15.22 $ 13.56 $ 11.25 -- -- --
Number of Units 52,889 22,252 3,720 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-16
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ----------------------------------------- ------------ ------------ ------------ ---------- -----------
AST T. ROWE PRICE ASSET ALLOCATION (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 23.17 $ 20.98 $ 17.03 $ 19.02 $ 20.11
Number of Units 187,867 146,224 155,933 109,469 114,244
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.50 $ 12.26 $ 9.97 -- --
Number of Units 28,473 16,691 8,031 -- --
With GMWB
Unit Price $ 21.12 $ 19.19 -- -- --
Number of Units 278,007 275,220 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 13.43267 -- -- -- --
Number of Units 778.716368 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.39 $ 10.37 -- -- --
Number of Units 357,085 222,150 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 21.61 $ 19.72 $ 16.13 -- --
Number of Units 14,874,922 15,311,524 15,466,227 -- --
With HAV, EBP and GMWB
Unit Value $ 13.33 $ 12.18 -- -- --
Number of Units 202,648 83,496 -- -- --
AST T. ROWE PRICE GLOBAL BOND (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 15.42 $ 14.28 $ 12.74 $ 11.15 $ 10.93
Number of Units 590,587 465,034 585,072 192,368 211,010
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.43 $ 11.55 -- -- --
Number of Units 26,235 2,095 -- -- --
With GMWB
Unit Price $ 15.10 $ 14.04 -- -- --
Number of Units 226,266 245,525 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 12.36567 -- -- -- --
Number of Units 1896.89519 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 14.73 $ 13.73 -- -- --
Number of Units 657,913 289,862 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 14.35 $ 13.40 $ 12.04 -- --
Number of Units 10,944,174 11,102,795 14,576,376 -- --
With HAV, EBP and GMWB
Unit Value $ 12.27 $ 11.47 -- -- --
Number of Units 759,419 92,875 -- -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- ----------------------------------------- ------------ ------------ ------------ ------------ ------------ -----------
AST T. ROWE PRICE ASSET ALLOCATION (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 20.34 $ 18.56 $ 15.78 $ 13.44 $ 11.98 $ 9.8
Number of Units 134,685 136,200 99,319 82,655 89,787 74,058
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST T. ROWE PRICE GLOBAL BOND (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.05 $ 12.13 $ 10.65 $ 11.11 $ 10.58 $ 9.61
Number of Units 222,268 335,544 266,136 213,216 127,373 25,171
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-17
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- --------------------------------------- ----------- ------------- ------------- ---------- -----------
AST GOLDMAN SACHS HIGH YIELD PORTFOLIO
WITH NO OPTIONAL BENEFITS
Unit Price $ 17.55 $ 15.90 $ 13.17 $ 13.25 $ 13.31
Number of Units 1,530,847 2,292,230 1,347,832 786,689 652,586
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.63 $ 12.38 $ 10.28 -- --
Number of Units 57,106 40,814 3,156 -- --
With GMWB
Unit Price $ 16.48 $ 14.99 -- -- --
Number of Units 889,797 1,249,072 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 13.55661 -- -- -- --
Number of Units 177.59012 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.06 $ 10.99 -- -- --
Number of Units 957,756 906,947 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 16.37 $ 14.95 $ 12.47 -- --
Number of Units 29,073,000 39,951,395 38,477,793 -- --
With HAV, EBP and GMWB
Unit Value $ 13.46 $ 12.30 -- -- --
Number of Units 395,118 144,343 -- -- --
AST LORD ABBETT BOND-DEBENTURE (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.03 $ 12.21 $ 10.35 $ 10.38 $ 10.14
Number of Units 791,466 707,957 590,060 149,890 1,858
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.83 $ 12.05 $ 10.24 -- --
Number of Units 48,997 21,453 10 -- --
With GMWB
Unit Price $ 12.84 $ 12.08 -- -- --
Number of Units 496,333 467,191 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- --
Number of Units -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.71 $ 11.98 -- -- --
Number of Units 1,012,739 814,135 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.63 $ 11.92 $ 10.18 -- --
Number of Units 12,180,171 13,311,181 10,468,962 -- --
With HAV, EBP and GMWB
Unit Value $ 12.67 $ 11.97 -- -- --
Number of Units 733,436 309,328 -- -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- --------------------------------------- ----------- ----------- ----------- ----------- ----------- -----------
AST GOLDMAN SACHS HIGH YIELD PORTFOLIO
WITH NO OPTIONAL BENEFITS
Unit Price $ 14.84 $ 14.64 $ 14.37 $ 12.75 $ 11.32 $ 9.56
Number of Units 557,915 626,368 595,692 433,739 300,107 122,508
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST LORD ABBETT BOND-DEBENTURE (2000)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-18
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- ----------------------------------- ------------ ------------ -------------- ------------ -------------
AST PIMCO TOTAL RETURN BOND (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 19.18 $ 18.39 $ 17.58 $ 16.2 $ 14.98
Number of Units 1,862,830 1,896,238 2,496,607 2,171,814 2,219,006
With any one of GRO Plus, EBP or HAV
Unit Price $ 11.05 $ 10.63 $ 10.18 -- --
Number of Units 258,631 96,756 7,823 -- --
With GMWB
Unit Price $ 18.32 $ 17.64 -- -- --
Number of Units 1,880,660 2,172,385 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 10.99354 -- -- -- --
Number of Units 685.317923 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 13.72 $ 13.23 -- -- --
Number of Units 3,074,732 2,301,863 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 17.89 $ 17.29 $ 16.65 -- --
Number of Units 67,873,940 84,154,157 113,007,310 -- --
With HAV, EBP and GMWB
Unit Value $ 10.91 $ 10.55 -- -- --
Number of Units 3,124,509 1,067,126 -- -- --
AST PIMCO LIMITED MATURITY BOND (1995)
WITH NO OPTIONAL BENEFITS
Unit Price $ 15.64 $ 15.42 $ 15.03 $ 14.24 $ 13.28
Number of Units 1,681,588 1,309,374 1,605,101 1,002,458 862,868
With any one of GRO Plus, EBP or HAV
Unit Price $ 10.45 $ 10.33 -- -- --
Number of Units 151,967 64,164 -- -- --
With GMWB
Unit Price $ 15.19 $ 15.04 -- -- --
Number of Units 981,539 984,068 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 10.39616 $ 10.30 -- -- --
Number of Units 16942.4595 13,612 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.18 $ 12.08 -- -- --
Number of Units 2,189,975 956,856 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 14.61 $ 14.52 $ 14.26 -- --
Number of Units 43,557,328 49,909,791 61,707,894 -- --
With HAV, EBP and GMWB
Unit Value $ 10.32 $ 10.26 -- -- --
Number of Units 1,926,546 238,601 -- -- --
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- ----------------------------------- ------------ ------------ ------------ ------------ ---------- -----------
AST PIMCO TOTAL RETURN BOND (1994)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.51 $ 13.75 $ 12.65 $ 11.6 $ 11.32 $ 9.62
Number of Units 1,509,966 1,703,920 1,523,587 1,203,159 846,356 256,950
With any one of GRO Plus, EBP
or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP
or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and
GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
AST PIMCO LIMITED MATURITY BOND
(1995)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.32 $ 12 $ 11.42 $ 10.71 $ 10.41 --
Number of Units 807,789 593,352 469,686 424,713 399,158 --
With any one of GRO Plus, EBP or
HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or
HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and
GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-19
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000
- --------------------------------------- --------------- -------------- --------------- -------------- --------------
AST MONEY MARKET (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.83 $ 13.80 $ 13.81 $ 13.72 $ 13.31
Number of Units 4,248,368 5,253,119 8,322,994 7,694,667 7,219,151
With any one of GRO Plus, EBP or HAV
Unit Price $ 9.97 $ 9.97 $ 10 -- --
Number of Units 199,762 61,894 15,100 -- --
With GMWB
Unit Price $ 12.93 $ 12.95 -- -- --
Number of Units 1,640,903 3,023,474 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 9.91306 $ 9.95 -- -- --
Number of Units 2608.77065 6,884 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.46 $ 10.51 -- -- --
Number of Units 1,663,940 1,245,396 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 13.05 $ 13.12 $ 13.23 -- --
Number of Units 62,955,144 91,304,625 163,759,511 -- --
With HAV, EBP and GMWB
Unit Value $ 9.84 $ 9.91 -- -- --
Number of Units 860,728 432,412 -- -- --
Gartmore Variable Investment Trust --
GVIT DEVELOPING MARKETS (1996)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.46 $ 9.63 $ 6.07 $ 6.77 $ 7.32
Number of Units 714,218 979,994 337,154 235,357 220,596
With any one of GRO Plus, EBP or HAV
Unit Price $ 18.68 $ 15.74 -- -- --
Number of Units 42,079 6,956 -- -- --
With GMWB
Unit Price $ 11.15 $ 9.40 -- -- --
Number of Units 481,903 559,123 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 18.58309 -- -- -- --
Number of Units 2102.30161 -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.52 $ 10.59 -- -- --
Number of Units 264,541 122,136 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.77 $ 9.12 $ 5.79 -- --
Number of Units 10,026,909 12,075,749 10,957,884 -- --
With HAV, EBP and GMWB
Unit Value $ 18.44 $ 15.63 -- -- --
Number of Units 118,837 20,956 -- -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------------------------------
SUB-ACCOUNT 1999 1998 1997 1996 1995 1994
- --------------------------------------- ------------ ------------ ------------ ------------ ------------ -----------
AST MONEY MARKET (1993)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.63 $ 12.15 $ 11.63 $ 11.14 $ 10.7 $ 10.23
Number of Units 3,950,988 1,757,232 1,518,310 1,292,931 968,666 880,903
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
GARTMORE VARIABLE INVESTMENT TRUST --
GVIT DEVELOPING MARKETS (1996)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.31 $ 6.3 $ 10.15 $ 10.29 -- --
Number of Units 210,007 250,465 305,775 39,355 -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- --
Number of Units -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- --
Number of Units -- -- -- -- -- --
A-20
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ---------------------------------------------------- ----------- ------------ ------------ ------------
WELLS FARGO VARIABLE TRUST -- EQUITY VALUE (8) (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.43 $ 8.54 $ 6.84 $ 9.07
Number of Units 35,085 44,932 109,227 131,195
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With GMWB
Unit Price $ 9.21 $ 8.37 -- --
Number of Units 89,700 104,929 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.99 $ 9.10 -- --
Number of Units 1,661 1,838 -- --
With HAV, EBP and GRO Plus
Unit Price $ 8.97 $ 8.18 $ 6.61 --
Number of Units 2,163,175 2,459,198 2,835,243 --
With HAV, EBP and GMWB
Unit Value -- -- -- --
Number of Units -- -- -- --
WELLS FARGO VARIABLE TRUST -- EQUITY INCOME (9) (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 17.77 $ 16.10 $ 12.84 $ 16.01
Number of Units 11,464 16,761 15,148 14,888
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.65 $ 12.40 -- --
Number of Units 4,788 163 -- --
With GMWB
Unit Price $ 17.51 $ 15.92 -- --
Number of Units 14,659 14,745 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 17.32 $ 15.79 -- --
Number of Units 19,612 10,586 -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.17 $ 9.28 $ 7.46 --
Number of Units 1,809,221 1,662,799 1,361,988 --
With HAV, EBP and GMWB
Unit Value $ 13.48 $ 12.32 -- --
Number of Units 42,381 17,889 -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ---------------------------------------------------- ------------ ----------- ----------- ------ ------ ------ -----
WELLS FARGO VARIABLE TRUST -- EQUITY VALUE (8) (1998)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.76 $ 9.28 $ 9.58 -- -- -- --
Number of Units 131,343 22,874 1,943 -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
WELLS FARGO VARIABLE TRUST -- EQUITY INCOME (9) (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 17.03 -- -- -- -- -- --
Number of Units 7,400 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-21
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- --------------------------------------- ------------ ----------- ------------ ----------
RYDEX VARIABLE TRUST -- NOVA (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 6.58 $ 5.77 $ 4.18 $ 6.54
Number of Units 48,943 50,893 53,740 96,678
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With GMWB
Unit Price $ 6.44 $ 5.68 -- --
Number of Units 85,863 96,668 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 6.50 -- -- --
Number of Units 1,742 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 6.30 $ 5.57 $ 4.06 --
Number of Units 1,446,998 1,903,565 2,629,551 --
With HAV, EBP and GMWB
Unit Value -- -- -- --
Number of Units -- -- -- --
RYDEX VARIABLE TRUST -- URSA (1999)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- $ 14.85 $ 12.29
Number of Units -- -- 875 1,421
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With GMWB
Unit Price $ 9.85 $ 11.08 -- --
Number of Units 3,663 4,023 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- --
Number of Units -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 9.63 $ 10.88 $ 14.45 --
Number of Units 145,301 182,396 234,642 --
With HAV, EBP and GMWB
Unit Value -- -- -- --
Number of Units -- -- -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ---------- ----------- ---- ---- ---- ---- ----
RYDEX VARIABLE TRUST -- NOVA (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.61 $ 10.88 -- -- -- -- --
Number of Units 160,940 170,171 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
RYDEX VARIABLE TRUST -- URSA (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.76 $ 9.33 -- -- -- -- --
Number of Units 58,713 39,869 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-22
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- --------------------------------------- ------------ ------------ ------------ ----------
RYDEX VARIABLE TRUST -- OTC (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 6.47 $ 5.95 $ 4.12 $ 6.78
Number of Units 78,958 92,804 105,261 185,653
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With GMWB
Unit Price $ 6.34 $ 5.86 -- --
Number of Units 182,608 215,109 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 4.20 $ 3.89 -- --
Number of Units 13,538 4,672 -- --
With HAV, EBP and GRO Plus
Unit Price $ 6.20 $ 5.75 $ 4.01 --
Number of Units 6,446,649 8,415,339 10,686,757 --
With HAV, EBP and GMWB
Unit Value -- -- -- --
Number of Units -- -- -- --
AIM V.I. -- DYNAMICS (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.53 $ 8.46 $ 6.18 $ 9.13
Number of Units 88,195 159,239 135,486 267,417
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.91 $ 13.27 -- --
Number of Units 2,760 3,305 -- --
With GMWB
Unit Price $ 9.36 $ 8.34 -- --
Number of Units 216,905 304,210 -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.8257 $ 13.23 -- --
Number of Units 144.738528 77 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 6.96 $ 6.22 -- --
Number of Units 188,184 137,600 -- --
With HAV, EBP and GRO Plus
Unit Price $ 9.16 $ 8.20 $ 6.03 --
Number of Units 5,121,700 7,609,788 9,117,894 --
With HAV, EBP and GMWB
Unit Value $ 14.71 $ 13.18 -- --
Number of Units 117,657 27,792 -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ---------- ---------- ---- ---- ----- ---- ----
Rydex Variable Trust -- OTC (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.53 $ 17.15 -- -- -- -- --
Number of Units 502,685 156,294 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AIM V.I. -- DYNAMICS (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.35 $ 13.93 -- -- -- -- --
Number of Units 210,494 9,545 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-23
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R)2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- --------------------------------------- ------------ ------------ ------------ ----------
AIM V.I. -- TECHNOLOGY (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.37 $ 5.17 $ 3.58 $ 6.78
Number of Units 283,479 226,147 265,726 409,546
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With GMWB
Unit Price $ 5.27 $ 5.09 -- --
Number of Units 311,442 331,934 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 3.32 $ 3.21 -- --
Number of Units 78,567 42,720 -- --
With HAV, EBP and GRO Plus
Unit Price $ 5.16 $ 5.00 $ 3.49 --
Number of Units 16,818,641 17,055,983 18,830,138 --
With HAV, EBP and GMWB
Unit Value $ 13.83 -- -- --
Number of Units 216 -- -- --
AIM V.I. -- HEALTH SCIENCES (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 13.03 $ 12.19 $ 9.6 $ 12.79
Number of Units 171,635 194,661 238,488 322,329
With One Optional Benefit
Unit Price $ 12.86 $ 12.06 -- --
Number of Units 2,401 2,415 -- --
With GMWB
Unit Price $ 12.79 $ 12.01 -- --
Number of Units 154,050 193,880 -- --
With Any Two Optional Benefits
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.34 $ 10.68 -- --
Number of Units 92,506 59,116 -- --
With All Optional Benefits
Unit Price $ 12.52 $ 11.81 $ 9.37 --
Number of Units 7,641,137 9,461,944 11,475,199 --
With HAV, EBP and GMWB
Unit Value $ 12.69 $ 11.98 -- --
Number of Units 39,343 16,675 -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ---------- ---------- ---- ---- ---- ---- ----
AIM V.I. -- TECHNOLOGY (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.59 $ 16.55 -- -- -- -- --
Number of Units 381,493 127,037 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
AIM V.I. -- HEALTH SCIENCES (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 14.73 $ 11.36 -- -- -- -- --
Number of Units 386,673 4,966 -- -- -- -- --
With One Optional Benefit
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With Any Two Optional Benefits
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With All Optional Benefits
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-24
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
----------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ----------- ----------- ----------- ----------- ----------
AIM V.I. -- FINANCIAL SERVICES (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 14.91 $ 13.81 $ 10.73 $ 12.69
Number of Units 89,216 153,732 137,142 282,129
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.74 $ 12.75 -- --
Number of Units 2,157 4,970 -- --
With GMWB
Unit Price $ 14.64 $ 13.60 -- --
Number of Units 218,580 238,104 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.72 $ 11.85 -- --
Number of Units 44,091 48,538 -- --
With HAV, EBP and GRO Plus
Unit Price $ 14.33 $ 13.37 $ 10.47 --
Number of Units 4,649,399 6,109,346 7,556,596 --
With HAV, EBP and GMWB
Unit Value $ 13.56 $ 12.67 -- --
Number of Units 19,908 9,201 -- --
Evergreen VA -- INTERNATIONAL EQUITY (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.39 $ 10.46 $ 7.25 $ 9.16
Number of Units 50,975 38,062 15,780 28,265
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.35 $ 10.46 -- --
Number of Units 637 742 -- --
With GMWB
Unit Price $ 12.34 $ 10.46 -- --
Number of Units 51,412 72,511 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.31 $ 10.46 -- --
Number of Units 62,400 24,847 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.48 $ 10.61 $ 7.08 --
Number of Units 1,401,462 1,230,078 1,442,329 --
With HAV, EBP and GMWB
Unit Value $ 12.27 $ 10.45 -- --
Number of Units 24,314 5,552 -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ----------- ---------- -------- ---- ---- ---- ---- ----
AIM V.I. -- FINANCIAL SERVICES (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 14.17 $ 11.43 -- -- -- -- --
Number of Units 414,091 3,896 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
EVERGREEN VA -- INTERNATIONAL EQUITY (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.64 -- -- -- -- -- --
Number of Units 18,481 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-25
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------
SUB-ACCOUNT 2004 2003 2002
- ----------- ------------ ----------- ---------
Evergreen VA -- SPECIAL EQUITY (10) (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.65 $ 11.08 $ 7.34
Number of Units 181,036 179,911 86,011
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.58 $ 14.86 --
Number of Units 9,351 7,046 --
With GMWB
Unit Price $ 11.44 $ 10.92 --
Number of Units 64,019 150,470 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.49859 -- --
Number of Units 472.808817 -- --
With any one of EBP or HAV a nd GMWB
Unit Value $ 9.57 $ 9.16 --
Number of Units 92,559 69,344 --
With HAV, EBP and GRO Plus
Unit Price $ 11.20 $ 10.73 $ 7.16
Number of Units 2,600,814 3,425,086 2,205,267
With HAV, EBP and GMWB
Unit Value $ 15.38 $ 14.76 --
Number of Units 71,520 19,312 --
EVERGREEN VA -- OMEGA (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.97 $ 9.36 $ 6.73
Number of Units 57,316 34,638 1,695
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.19 -- --
Number of Units 2,865 -- --
With GMWB
Unit Price $ 9.84 $ 9.27 --
Number of Units 29,895 47,047 --
Any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV a nd GMWB
Unit Value $ 9.75 $ 9.21 --
Number of Units 26,849 15,743 --
With HAV, EBP and GRO Plus
Unit Price $ 7.20 $ 6.81 $ 4.93
Number of Units 3,262,680 3,260,000 2,594,817
With HAV, EBP and GMWB
Unit Value $ 14.01 $ 13.27 --
Number of Units 22,947 3,320 --
Year Ended December 31,
------------------------------------------------------------------------------
Sub-account 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- --------- ----------- ---- ---- ---- ---- ---- ----
EVERGREEN VA -- SPECIAL EQUITY (10) (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.14 $ 11.11 -- -- -- -- -- --
Number of Units 114,085 33,699 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV a nd GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
EVERGREEN VA -- OMEGA (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.08 -- -- -- -- -- -- --
Number of Units 28,442 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
Any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV a nd GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-26
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ------------------------------------------ ------------- ------------- ------------- -----------
ProFund VP -- EUROPE 30 (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.24 $ 8.14 $ 5.91 $ 8.01
Number of Units 328,575 413,959 26,656 74,072
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.12 $ 13.35 -- --
Number of Units 33,131 4,594 -- --
With GMWB
Unit Price $ 9.08 $ 8.02 -- --
Number of Units 71,810 102,573 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 7.90 $ 7.00 -- --
Number of Units 201,444 75,543 -- --
With HAV, EBP and GRO Plus
Unit Price $ 8.89 $ 7.88 $ 5.76 --
Number of Units 7,338,767 9,921,296 2,550,567 --
With HAV, EBP and GMWB
Unit Value $ 14.93 $ 13.26 -- --
Number of Units 13,634 2,495 -- --
ProFund VP -- ASIA 30 (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.63 $ 12.78 $ 7.8 --
Number of Units 124,486 160,378 18,518 --
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.91 $ 16.14 -- --
Number of Units 307 1,307 -- --
With GMWB
Unit Price $ 12.51 $ 12.71 -- --
Number of Units 50,380 69,173 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.43 $ 12.66 -- --
Number of Units 63,254 47,272 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.38 $ 12.62 $ 7.76 --
Number of Units 1,589,326 2,441,338 2,060,741 --
With HAV, EBP and GMWB
Unit Value $ 15.71 $ 16.03 -- --
Number of Units 20,171 6,176 -- --
YEAR ENDED DECEMBER 31,
-------------------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- ----------- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- EUROPE 30 (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.62 $ 12.26 -- -- -- -- --
Number of Units 33,488 134 -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
ProFund VP -- ASIA 30 (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-27
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- ----------- ---- ---- ----
ProFund VP -- JAPAN (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.81 $ 9.18 $ 7.29
Number of Units 333,037 64,887 3,411
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.70 $ 12.85 --
Number of Units 574 2,038 --
With GMWB
Unit Price $ 9.72 $ 9.13 --
Number of Units 46,067 42,857 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.65 $ 9.09 --
Number of Units 87,251 28,579 --
With HAV, EBP and GRO Plus
Unit Price $ 9.61 $ 9.06 $ 7.25
Number of Units 1,301,602 2,077,940 338,472
With HAV, EBP and GMWB
Unit Value $ 13.52 $ 12.76 --
Number of Units 11,573 7,868 --
ProFund VP -- BANKS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.31 $ 11.08 8.62
Number of Units 165,023 20,188 6,455
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.41 $ 13.01 --
Number of Units -- 3,337 --
With GMWB
Unit Price $ 12.19 $ 11.02 --
Number of Units 14,584 3,002 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.33204 -- --
Number of Units 0.00279095 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.11 $ 10.97 --
Number of Units 12,480 8,886 --
With HAV, EBP and GRO Plus
Unit Price $ 12.06 $ 10.94 $ 8.58
Number of Units 375,128 341,497 555,999
With HAV, EBP and GMWB
Unit Value $ 14.22 $ 12.92 --
Number of Units 12,919 4,576 --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- ---- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- JAPAN (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- BANKS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-28
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- ----------- ---- ---- ----
ProFund VP -- BASIC MATERIALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.19 $ 11.13 $ 8.52
Number of Units 167,864 253,494 11,440
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.75 $ 13.50 --
Number of Units 6,871 8,846 --
With GMWB
Unit Price $ 12.08 $ 11.07 --
Number of Units 72,530 37,759 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 14.66645 -- --
Number of Units 360.188048 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.00 $ 11.02 --
Number of Units 42,597 53,759 --
With HAV, EBP and GRO Plus
Unit Price $ 11.95 $ 10.99 $ 8.47
Number of Units 992,142 2,610,829 361,568
With HAV, EBP and GMWB
Unit Value $ 14.56 $ 13.41 --
Number of Units 17,377 3,940 --
ProFund VP -- BIOTECHNOLOGY (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 7.92 $ 7.27 $ 5.23
Number of Units 133,501 49,177 111,468
With any one of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With GMWB
Unit Price $ 7.81 $ 7.19 --
Number of Units 28,189 26,692 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 7.73 $ 7.14 --
Number of Units 32,726 20,329 --
With HAV, EBP and GRO Plus
Unit Price $ 7.69 $ 7.11 $ 5.16
Number of Units 1,972,431 1,623,411 2,412,670
With HAV, EBP and GMWB
Unit Value -- -- --
Number of Units -- -- --
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- ---- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- BASIC MATERIALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- BIOTECHNOLOGY (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.43 -- -- -- -- -- -- --
Number of Units 47,974 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-29
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- --------------------------------------- ------------ ----------- ----------- ------
ProFund VP -- CONSUMER SERVICES (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.82 $ 9.19 $ 7.29 --
Number of Units 195,868 24,982 14,792 --
With any one of GRO Plus, EBP or HAV
Unit Price -- $ 11.79 -- --
Number of Units -- 4,440 -- --
With GMWB
Unit Price $ 9.73 $ 9.14 -- --
Number of Units 4,244 9,359 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.67 $ 9.10 -- --
Number of Units 20,288 13,935 -- --
With HAV, EBP and GRO Plus
Unit Price $ 9.63 $ 9.07 $ 7.26 --
Number of Units 386,496 171,567 319,201 --
With HAV, EBP and GMWB
Unit Value $ 12.41 $ 11.71 -- --
Number of Units 27,094 2,321 -- --
ProFund VP -- CONSUMER GOODS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.65 $ 9.81 $ 8.33 --
Number of Units 24,590 11,486 9,203 --
With any one of GRO Plus, EBP or HAV
Unit Price $ 12.60 $ 11.64 -- --
Number of Units 18,767 110 -- --
With GMWB
Unit Price $ 10.55 $ 9.75 -- --
Number of Units 30,219 13,561 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.47 $ 9.71 -- --
Number of Units 7,578 3,821 -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.43 $ 9.68 $ 8.29 --
Number of Units 282,872 135,369 406,966 --
With HAV, EBP and GMWB
Unit Value $ 12.44 $ 11.56 -- --
Number of Units 8,109 1,762 -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ------ ------ ------ ------ ------ ------ -----
ProFund VP -- CONSUMER SERVICES (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
ProFund VP -- CONSUMER GOODS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-30
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- -------------- ------------- -------------
ProFund VP -- OIL & GAS (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.91 $ 9.26 $ 7.63
Number of Units 247,649 336,748 148,807
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.73 $ 12.27 --
Number of Units 17,651 3,159 --
With GMWB
Unit Price $ 11.74 $ 9.17 --
Number of Units 152,439 209,311 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.64967 -- --
Number of Units 974.547067 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.62 $ 9.10 --
Number of Units 186,654 50,155 --
With HAV, EBP and GRO Plus
Unit Price $ 11.56 $ 9.06 $ 7.51
Number of Units 2,906,307 2,665,622 1,985,954
With HAV, EBP and GMWB
Unit Value $ 15.53 $ 12.19 --
Number of Units 66,223 2,523 --
ProFund VP -- FINANCIALS (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.03 $ 10.06 $ 7.85
Number of Units 259,356 28,956 31,033
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.77 $ 12.59 --
Number of Units 1,291 84 --
With GMWB
Unit Price $ 10.87 $ 9.96 --
Number of Units 9,956 24,316 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.77 $ 9.88 --
Number of Units 70,662 32,283 --
With HAV, EBP and GRO Plus
Unit Price $ 10.70 $ 9.84 $ 7.74
Number of Units 988,561 1,055,518 1,086,464
With HAV, EBP and GMWB
Unit Value $ 13.60 $ 12.51 --
Number of Units 33,262 3,980 --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- --------- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- OIL & GAS (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.25 -- -- -- -- -- -- --
Number of Units 262,999 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- FINANCIALS (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.28 -- -- -- -- -- -- --
Number of Units 12,893 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-31
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-----------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- ------------- ------------- -------------
ProFund VP -- HEALTH CARE (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.58 $ 8.44 $ 7.23
Number of Units 342,154 57,417 76,140
With any one of GRO Plus, EBP or HAV
Unit Price $ 11.34 $ 11.18 --
Number of Units 2,059 89 --
With GMWB
Unit Price $ 8.46 $ 8.35 --
Number of Units 12,368 26,046 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 8.38 $ 8.29 --
Number of Units 91,641 23,591 --
With HAV, EBP and GRO Plus
Unit Price $ 8.33 $ 8.25 $ 7.13
Number of Units 1,535,099 1,510,258 1,313,814
With HAV, EBP and GMWB
Unit Value $ 11.19 $ 11.10 --
Number of Units 43,276 11,578 --
ProFund VP -- INDUSTRIALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.45 $ 10.18 --
Number of Units 23,756 41,864 --
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.58 $ 13.00 --
Number of Units 1,098 2,980 --
With GMWB
Unit Price $ 11.34 $ 10.12 --
Number of Units 4,213 66,394 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.27 $ 10.08 --
Number of Units 22,333 11,186 --
With HAV, EBP and GRO Plus
Unit Price $ 11.22 $ 10.05 $ 7.93
Number of Units 364,913 690,803 12,642
With HAV, EBP and GMWB
Unit Value $ 14.40 $ 12.91 --
Number of Units 15,368 3,639 --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ----------- ------ ------ ------ ------ ------ ------ -----
ProFund VP -- HEALTH CARE (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.42 -- -- -- -- -- -- --
Number of Units 38,320 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- INDUSTRIALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-32
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- ---------- --------- ---------- ---- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- INTERNET (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 18.38 $ 15.25 $ 8.63 -- -- -- -- -- -- -- --
Number of Units 181,598 54,786 53,814 -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Price $ 18.20 $ 15.16 -- -- -- -- -- -- -- -- --
Number of Units 15,692 7,564 -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 18.08 $ 15.10 -- -- -- -- -- -- -- -- --
Number of Units 20,851 8,287 -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 18.01 $ 15.06 $ 8.58 -- -- -- -- -- -- -- --
Number of Units 1,118,993 707,697 2,982,656 -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
ProFund VP -- PHARMACEUTICALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.15 $ 9.04 $ 8.62 -- -- -- -- -- -- -- --
Number of Units 41,607 81,004 9,411 -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Price $ 8.08 $ 8.99 -- -- -- -- -- -- -- -- --
Number of Units 46,934 64,585 -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or H AV and GMWB
Unit Value $ 8.02 $ 8.95 -- -- -- -- -- -- -- -- --
Number of Units 27,913 24,743 -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 7.99 $ 8.92 $ 8.57 -- -- -- -- -- -- -- --
Number of Units 397,839 782,830 241,916 -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value $ 8.96 $ 10.02 -- -- -- -- -- -- -- -- --
Number of Units 40,402 6,951 -- -- -- -- -- -- -- -- --
A-33
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-----------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- ------------ ----------- -----------
ProFund VP -- PRECIOUS METALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.10 $ 13.52 $ 9.77
Number of Units 406,661 315,457 395,037
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.94 $ 15.61 --
Number of Units 7,595 2,292 --
With GMWB
Unit Price $ 11.98 $ 13.44 --
Number of Units 69,918 135,133 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.90 $ 13.38 --
Number of Units 102,230 89,687 --
With HAV, EBP and GRO Plus
Unit Price $ 11.85 $ 13.35 $ 9.72
Number of Units 2,177,951 3,303,737 3,992,389
With HAV, EBP and GMWB
Unit Value $ 13.76 $ 15.51 --
Number of Units 18,961 6,099 --
ProFund VP -- REAL ESTATE (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 18.01 $ 14.25 $ 10.77
Number of Units 216,703 116,140 32,985
With any one of GRO Plus, EBP or HAV
Unit Price $ 16.99 $ 13.48 --
Number of Units 2,664 248 --
With GMWB
Unit Price $ 17.76 $ 14.10 --
Number of Units 25,269 33,152 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 17.58 $ 14.00 --
Number of Units 53,006 18,355 --
With HAV, EBP and GRO Plus
Unit Price $ 17.48 $ 13.94 $ 10.61
Number of Units 1,840,538 1,753,690 1,489,153
With HAV, EBP and GMWB
Unit Value $ 16.78 $ 13.39 --
Number of Units 32,379 5,332 --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- --------- ------ ------ ------ ------ ------ ------ -----
ProFund VP -- PRECIOUS METALS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- REAL ESTATE (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.84 -- -- -- -- -- -- --
Number of Units 35,747 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-34
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
---------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- ----------- ----------- -----------
ProFund VP -- SEMICONDUCTOR (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 7.35 $ 9.67 $ 5.17
Number of Units 98,700 51,652 33,410
With any one of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With GMWB
Unit Price $ 7.28 $ 9.62 --
Number of Units 23,077 16,928 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 7.23 $ 9.58 --
Number of Units 52,485 17,621 --
With HAV, EBP and GRO Plus
Unit Price $ 7.20 $ 9.55 $ 5.14
Number of Units 634,759 1,401,488 608,142
With HAV, EBP and GMWB
Unit Value -- -- --
Number of Units -- -- --
ProFund VP -- TECHNOLOGY (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.03 $ 5.09 $ 3.51
Number of Units 201,017 83,329 48,717
With any one of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With GMWB
Unit Price $ 4.96 $ 5.04 --
Number of Units 54,065 31,769 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 4.91 $ 5.00 --
Number of Units 88,720 74,180 --
With HAV, EBP and GRO Plus
Unit Price $ 4.88 $ 4.98 $ 3.46
Number of Units 2,360,913 3,100,820 3,290,202
With HAV, EBP and GMWB
Unit Value $ 13.10 -- --
Number of Units 114 -- --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- --------- ----- ---- ---- ---- ---- ---- ----
ProFund VP -- SEMICONDUCTOR (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- TECHNOLOGY (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.95 -- -- -- -- -- -- --
Number of Units 53,955 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-35
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
Year Ended December 31,
-----------------------------------------
Sub-account 2004 2003 2002
- --------------------------------------- ----------- ----------- -----------
ProFund VP -- TELECOMMUNICATIONS (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.16 $ 4.49 $ 4.41
Number of Units 233,182 56,454 65,796
With any one of GRO Plus, EBP or HAV
Unit Price $ 11.68 $ 10.20 --
Number of Units 20 128 --
With GMWB
Unit Price $ 5.09 $ 4.45 --
Number of Units 122,311 25,158 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 5.04 $ 4.41 --
Number of Units 118,731 30,179 --
With HAV, EBP and GRO Plus
Unit Price $ 5.01 $ 4.39 $ 4.35
Number of Units 1,612,072 787,450 3,082,428
With HAV, EBP and GMWB
Unit Value $ 11.53 $ 10.13 --
Number of Units 16,606 4,026 --
ProFund VP -- UTILITIES (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.97 $ 7.45 $ 6.18
Number of Units 347,666 88,248 127,336
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.33 $ 12.78 --
Number of Units 1,644 92 --
With GMWB
Unit Price $ 8.84 $ 7.38 --
Number of Units 201,748 100,385 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 15.24805 -- --
Number of Units 0.00196746 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 8.75 $ 7.32 --
Number of Units 79,702 18,902 --
With HAV, EBP and GRO Plus
Unit Price $ 8.70 $ 7.29 $ 6.09
Number of Units 2,953,337 1,889,169 3,391,766
With HAV, EBP and GMWB
Unit Value $ 15.13 $ 12.69 --
Number of Units 74,584 7,430 --
YEAR ENDED DECEMBER 31,
---------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- --------- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- TELECOMMUNICATIONS (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 7.15 -- -- -- -- -- -- --
Number of Units 1,696 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- UTILITIES (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.18 -- -- -- -- -- -- --
Number of Units 48,251 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-36
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- ------------- ---------- -----------
ProFund VP -- BULL (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.82 $ 10.01 $ 8.02
Number of Units 617,953 404,601 153,898
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.10 $ 12.15 --
Number of Units 14,279 6,640 --
With GMWB
Unit Price $ 10.72 $ 9.95 --
Number of Units 1,644,159 875,798 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.65 $ 9.91 --
Number of Units 412,259 394,427 --
With HAV, EBP and GRO Plus
Unit Price $ 10.60 $ 9.88 $ 7.98
Number of Units 12,175,025 7,676,322 6,296,621
With HAV, EBP and GMWB
Unit Value $ 12.93 $ 12.07 --
Number of Units 182,468 18,458 --
ProFund VP -- BEAR (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.31 $ 10.45 $ 13.95
Number of Units 98,354 196,473 217,878
With any one of GRO Plus, EBP or HAV
Unit Price $ 6.74 $ 7.58 --
Number of Units 4,246 1,812 --
With GMWB
Unit Price $ 9.18 $ 10.34 --
Number of Units 53,812 36,026 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 6.7025 -- --
Number of Units 0.01342783 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 9.09 $ 10.26 --
Number of Units 16,155 28,299 --
With HAV, EBP and GRO Plus
Unit Price $ 9.04 $ 10.22 $ 13.74
Number of Units 1,605,788 2,846,064 4,011,499
With HAV, EBP and GMWB
Unit Value $ 6.65 $ 7.53 --
Number of Units 5,797 3,186 --
Year Ended December 31,
-----------------------------------------------------------
Sub-account 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- ---------- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- BULL (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- BEAR (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.62 -- -- -- -- -- -- --
Number of Units 104,865 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-37
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- ----------- ------------ ------------ ------------
ProFund VP -- ULTRABULL (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 8.45 $ 7.26 $ 4.78
Number of Units 367,865 327,838 108,279
With any one of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With GMWB
Unit Price $ 8.33 $ 7.18 --
Number of Units 209,532 150,978 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 8.25 $ 7.13 --
Number of Units 305,666 56,257 --
With HAV, EBP and GRO Plus
Unit Price $ 8.20 $ 7.10 $ 4.71
Number of Units 5,277,550 5,798,604 6,435,217
With HAV, EBP and GMWB
Unit Value -- -- --
Number of Units -- -- --
ProFund VP -- OTC (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.57 $ 5.16 $ 3.54
Number of Units 629,788 729,288 520,310
With any one of GRO Plus, EBP or HAV
Unit Price $ 14.66 $ 13.63 --
Number of Units 22,415 2,703 --
With GMWB
Unit Price $ 5.49 $ 5.11 --
Number of Units 279,544 529,884 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 5.44 $ 5.07 --
Number of Units 293,311 257,947 --
With HAV, EBP and GRO Plus
Unit Price $ 5.40 $ 5.05 $ 3.49
Number of Units 12,165,435 18,325,679 18,242,013
With HAV, EBP and GMWB
Unit Value $ 14.47 $ 13.54 --
Number of Units 105,135 12,607 --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ---------- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- ULTRABULL (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 7.52 -- -- -- -- -- -- --
Number of Units 80,778 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- OTC (2001)
WITH NO OPTIONAL BENEFITS
Unit Price $ 5.81 -- -- -- -- -- -- --
Number of Units 163,539 -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-38
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- ------------ ------------ ------------
ProFund VP -- SHORT OTC (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 6.09 $ 6.90 $ 11.07
Number of Units 92,529 164,801 119,355
With any one of GRO Plus, EBP or HAV
Unit Price $ 5.72 $ 6.49 --
Number of Units 4,270 3,522 --
With GMWB
Unit Price $ 6.03 $ 6.86 --
Number of Units 41,643 48,889 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 5.99 $ 6.83 --
Number of Units 77,280 40,617 --
With HAV, EBP and GRO Plus
Unit Price $ 5.97 $ 6.81 $ 11.02
Number of Units 1,145,149 2,407,843 682,058
With HAV, EBP and GMWB
Unit Value $ 5.64 $ 6.45 --
Number of Units 7,841 10,811 --
ProFund VP -- ULTRAOTC (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 1.37 $ 1.21 $ 0.6
Number of Units 1,534,878 1,640,765 1,188,414
With One Optional Benefit
Unit Price -- -- --
Number of Units -- -- --
With GMWB
Unit Price $ 1.34 $ 1.19 --
Number of Units 1,856,494 947,879 --
With Any Two Optional Benefits
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 0.87 $ 0.77 --
Number of Units 6,405,048 890,270 --
With All Optional Benefits
Unit Price $ 1.31 $ 1.17 $ 0.58
Number of Units 64,074,230 70,502,464 70,200,723
With HAV, EBP and GMWB
Unit Value $ 19.53 -- --
Number of Units 90 -- --
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- ----------- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- SHORT OTC (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- ULTRAOTC (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 1.94 $ 6.25 $ 23.61 -- -- -- -- --
Number of Units 1,166,884 473,337 189,497 -- -- -- -- --
With One Optional Benefit
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With Any Two Optional Benefits
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With All Optional Benefits
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-39
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------
SUB-ACCOUNT 2004 2003 2002
- ----------- ----------- ----------- -----------
ProFund VP -- MID-CAP VALUE (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.99 $ 10.41 $ 7.72
Number of Units 364,242 192,966 28,913
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.58 -- --
Number of Units 2,569 -- --
With GMWB
Unit Price $ 11.88 $ 10.35 --
Number of Units 233,345 97,167 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.80 $ 10.30 --
Number of Units 87,968 59,964 --
With HAV, EBP and GRO Plus
Unit Price $ 11.75 $ 10.28 $ 7.68
Number of Units 5,847,389 2,348,166 1,089,843
With HAV, EBP and GMWB
Unit Value $ 15.38 $ 13.46 --
Number of Units 64,251 18,261 --
ProFund VP -- MID-CAP GROWTH (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.87 $ 9.85 $ 7.75
Number of Units 181,124 150,991 21,813
With any one of GRO Plus, EBP or HAV
Unit Price $ 13.72 $ 12.46 --
Number of Units 1,151 724 --
With GMWB
Unit Price $ 10.77 $ 9.79 --
Number of Units 140,397 31,184 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.70 $ 9.75 --
Number of Units 80,520 24,107 --
With HAV, EBP and GRO Plus
Unit Price $ 10.65 $ 9.73 $ 7.71
Number of Units 3,276,513 3,105,446 1,444,783
With HAV, EBP and GMWB
Unit Value $ 13.54 $ 12.38 --
Number of Units 55,896 17,202 --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- ----------- ---- ---- ---- ---- ---- ---- ---- ----
ProFund VP -- MID-CAP VALUE (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- MID-CAP GROWTH (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-40
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
------------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------- -------------- ----------- ------------
ProFund VP -- ULTRAMID-CAP (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.32 $ 9.71 $ 5.75
Number of Units 245,338 91,098 34,937
With any one of GRO Plus, EBP or HAV
Unit Price $ 21.07 $ 16.65 --
Number of Units 424 180 --
With GMWB
Unit Price $ 12.21 $ 9.66 --
Number of Units 59,951 23,808 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.31 $ 9.62 --
Number of Units 115,073 34,556 --
With HAV, EBP and GRO Plus
Unit Price $ 12.08 $ 9.59 $ 5.72
Number of Units 2,695,188 2,335,072 2,276,660
With HAV, EBP and GMWB
Unit Value $ 20.80 $ 16.53 --
Number of Units 28,117 5,328 --
ProFund VP -- SMALL-CAP VALUE (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.40 $ 9.55 $ 7.14
Number of Units 585,857 346,508 99,422
With any one of GRO Plus, EBP or HAV
Unit Price $ 16.14 $ 13.56 --
Number of Units 8,545 4,650 --
With GMWB
Unit Price $ 11.29 $ 9.50 --
Number of Units 250,135 170,053 --
With any two of GRO Plus, EBP or HAV
Unit Price $ 16.0549 -- --
Number of Units 1344.61255 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.22 $ 9.46 --
Number of Units 123,988 105,751 --
With HAV, EBP and GRO Plus
Unit Price $ 11.17 $ 9.43 $ 7.1
Number of Units 5,676,835 7,690,089 2,908,617
With HAV, EBP and GMWB
Unit Value $ 15.93 $ 13.47 --
Number of Units 75,890 27,349 --
YEAR ENDED DECEMBER 31,
------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ------ ------ ------ ------ ------ ------ ------ -----
ProFund VP -- ULTRAMID-CAP (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- SMALL-CAP VALUE (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-41
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- -------------------------------------- ------------- ------------- ------------- ------------
ProFund VP -- SMALL-CAP GROWTH (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.30 $ 10.34 $ 7.75 --
Number of Units 427,343 184,649 89,346 --
With any one of GRO Plus, EBP or HAV
Unit Price $ 15.67 $ 13.20 -- --
Number of Units 7,053 3,412 -- --
With GMWB
Unit Price $ 12.19 $ 10.28 -- --
Number of Units 208,566 162,123 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- $ 13.16 -- --
Number of Units -- 3,708 -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.11 $ 10.23 -- --
Number of Units 237,000 65,882 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.06 $ 10.21 $ 7.71 --
Number of Units 8,939,008 8,727,145 2,138,861 --
With HAV, EBP and GMWB
Unit Value $ 15.47 $ 13.11 -- --
Number of Units 63,321 24,983 -- --
ProFund VP -- ULTRASMALL-CAP (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.51 $ 9.61 $ 4.85 $ 8.51
Number of Units 476,709 258,143 147,185 221,152
With any one of GRO Plus, EBP or HAV
Unit Price $ 25.52 -- -- --
Number of Units 3,653 -- -- --
With GMWB
Unit Price $ 12.29 $ 9.47 -- --
Number of Units 138,180 62,351 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.28 $ 9.49 -- --
Number of Units 143,175 60,051 -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.03 $ 9.31 $ 4.73 --
Number of Units 6,963,400 6,332,095 5,664,617 --
With HAV, EBP and GMWB
Unit Value $ 25.20 -- -- --
Number of Units 4,066 -- -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- -------------------------------------- ----------- ---------- ---- ---- ---- ---- ----
ProFund VP -- SMALL-CAP GROWTH (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
ProFund VP -- ULTRASMALL-CAP (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.27 $ 11.98 -- -- -- -- --
Number of Units 233,113 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-42
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
-----------------------------------------
SUB-ACCOUNT 2004 2003 2002
- --------------------------------------------- ------------- ------------- -------------
ProFund VP -- U.S. GOVERNMENT PLUS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 12.11 $ 11.27 $ 11.64
Number of Units 195,171 186,404 206,704
With any one of GRO Plus, EBP or HAV
Unit Price $ 10.57 -- --
Number of Units 26,858 -- --
With GMWB
Unit Price $ 12.00 $ 11.20 --
Number of Units 22,495 23,280 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 11.91 $ 11.15 --
Number of Units 42,782 20,058 --
With HAV, EBP and GRO Plus
Unit Price $ 11.87 $ 11.12 $ 11.58
Number of Units 1,755,931 2,033,836 7,945,270
With HAV, EBP and GMWB
Unit Value $ 10.43 $ 9.79 --
Number of Units 11,478 6,691 --
ProFund VP -- RISING RATES OPPORTUNITY (2002)
WITH NO OPTIONAL BENEFITS
Unit Price $ 6.81 $ 7.69 $ 8.07
Number of Units 888,013 217,316 126,238
With any one of GRO Plus, EBP or HAV
Unit Price $ 8.14 $ 9.22 --
Number of Units 8,915 6,919 --
With GMWB
Unit Price $ 6.74 $ 7.64 --
Number of Units 110,984 47,076 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 6.70 $ 7.61 --
Number of Units 266,169 78,428 --
With HAV, EBP and GRO Plus
Unit Price $ 6.67 $ 7.59 $ 8.03
Number of Units 6,072,654 2,570,189 583,657
With HAV, EBP and GMWB
Unit Value $ 8.04 $ 9.16 --
Number of Units 168,043 31,892 --
YEAR ENDED DECEMBER 31,
------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------------- ------ ------ ------ ------ ------ ------ ------ -----
ProFund VP -- U.S. GOVERNMENT PLUS (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
ProFund VP -- RISING RATES OPPORTUNITY (2002)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-43
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
---------------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ------------ ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
ProFund VP -- LARGE-CAP GROWTH
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 72,725 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 18,860 -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 2,860 -- -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 6,286 -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 554 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 84 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
ProFund VP -- LARGE-CAP VALUE
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.37 -- -- -- -- -- -- -- -- -- --
Number of Units 159,605 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price $ 10.36 -- -- -- -- -- -- -- -- -- --
Number of Units 36,170 -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value $ 10.36 -- -- -- -- -- -- -- -- -- --
Number of Units 3,802 -- -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 10.36 -- -- -- -- -- -- -- -- -- --
Number of Units 1,123 -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.36 -- -- -- -- -- -- -- -- -- --
Number of Units 554 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.36 -- -- -- -- -- -- -- -- -- --
Number of Units 84 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
A-44
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ----------- ------ ------ ------ ------ ------ ------ ------ ------ ------ -----
ProFund VP -- SHORT MID-CAP
WITH NO OPTIONAL BENEFITS
Unit Price $ 9.71 -- -- -- -- -- -- -- -- -- --
Number of Units 11,369 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value 9.70 -- -- -- -- -- -- -- -- -- --
Number of Units 571 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price 9.70 -- -- -- -- -- -- -- -- -- --
Number of Units 1,808 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
ProFund VP -- SHORT SMALL-CAP
WITH NO OPTIONAL BENEFITS
Unit Price 9.55 -- -- -- -- -- -- -- -- -- --
Number of Units 12,042 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value 9.55 -- -- -- -- -- -- -- -- -- --
Number of Units 7,859 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price 9.54 -- -- -- -- -- -- -- -- -- --
Number of Units 111,484 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
A-45
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
-----------------------------------------
SUB-ACCOUNT 2004 2003 2002
- -------------------------------------------- -------------- -------------- -----------
FIRST TRUST(R) 10 UNCOMMON VALUES (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 4.50 -- $ 2.99
Number of Units 28,099 -- 42562
With any one of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With GMWB
Unit Price $ 4.93 -- --
Number of Units 354,977 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 4.38 -- --
Number of Units 33,075 -- --
With HAV, EBP and GRO Plus
Unit Price $ 4.35 -- $ 2.94
Number of Units 1,576,636 -- 1716102
With HAV, EBP and GMWB
Unit Value -- -- --
Number of Units -- -- --
FIRST TRUST TARGET MANAGED VIP (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.40 -- --
Number of Units 14,798 -- --
With any one of GRO Plus, EBP or HAV
Unit Price $ 11.38 -- --
Number of Units 38,020 -- --
With GMWB
Unit Value $ 9.30 $ 8.36 --
Number of Units 1,696,946 1,697,696 --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- --
Number of Units -- -- --
With any one of EBP or HAV and GMWB
Number of Units 695,591 476,951 --
With HAV, EBP and GRO Plus
Unit Price $ 11.34 -- --
Number of Units 1,435,179 -- --
With HAV, EBP and GMWB
Unit Value $ 14.56 -- --
Number of Units 246,099 -- --
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------
SUB-ACCOUNT 2001 2000 1999 1998 1997 1996 1995 1994
- -------------------------------------------- ---------- ----------- ------ ------ ------ ------ ------ -----
FIRST TRUST(R) 10 UNCOMMON VALUES (2000)
WITH NO OPTIONAL BENEFITS
Unit Price $ 4.77 $ 7.46 -- -- -- -- -- --
Number of Units 44306 37575 -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
FIRST TRUST TARGET MANAGED VIP (1999)
WITH NO OPTIONAL BENEFITS
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- --
A-46
APPENDIX A
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------- ------------ ----------- ------ ------ ------ ------ ------ ------ ------ ------ -----
FIRST TRUST THE DOW(SM) DART 10 (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 10.55 -- -- -- -- -- -- -- -- -- --
Number of Units 59 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value $ 8.24 $ 8.02 -- -- -- -- -- -- -- -- --
Number of Units 422,086 517,287 -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.35 $ 12.05 -- -- -- -- -- -- -- -- --
Number of Units 24,245 10,069 -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.50 -- -- -- -- -- -- -- -- -- --
Number of Units 306,364 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value $ 12.29 -- -- -- -- -- -- -- -- -- --
Number of Units 25,135 -- -- -- -- -- -- -- -- -- --
FIRST TRUST GLOBAL TARGET 15 (11) (1999)
WITH NO OPTIONAL BENEFITS
Unit Price $ 11.93 -- -- -- -- -- -- -- -- -- --
Number of Units 4,880 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price $ 11.91 -- -- -- -- -- -- -- -- -- --
Number of Units 4,186 -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value $ 13.15 $ 10.59 -- -- -- -- -- -- -- -- --
Number of Units 274,150 277,522 -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 16.05 $ 12.96 -- -- -- -- -- -- -- -- --
Number of Units 22,405 8,569 -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 11.87 -- -- -- -- -- -- -- -- -- --
Number of Units 708,706 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value $ 15.96 -- -- -- -- -- -- -- -- -- --
Number of Units 22,182 -- -- -- -- -- -- -- -- -- --
A-47
APPENDIX A
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
YEAR ENDED DECEMBER 31,
--------------------------------------------------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994
- -------------------------------------------------------------------------------------------------------------------------------
FIRST TRUST S&P TARGET 24 (1999)
WITH NO OPTION AL BENEFITS
Unit Price $ 10.82 -- -- -- -- -- -- -- -- -- --
Number of Units 999 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value $ 8.21 $ 7.30 -- -- -- -- -- -- -- -- --
Number of Units 602,226 751,579 -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 13.34 $ 11.89 -- -- -- -- -- -- -- -- --
Number of Units 43,536 5,532 -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.76 -- -- -- -- -- -- -- -- -- --
Number of Units 259,946 -- -- -- --
With HAV, EBP and GMWB
Unit Value $ 13.27 -- -- -- -- -- -- -- -- -- --
Number of Units 37,547 -- -- -- -- -- -- -- -- -- --
FIRST TRUST NASDAQ TARGET 15 (1999)
WITH NO OPTION AL BENEFITS
Unit Price $ 10.73 -- -- -- -- -- -- -- -- -- --
Number of Units 2,813 -- -- -- -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With GMWB
Unit Value $ 8.57 $ 8.90 -- -- -- -- -- -- -- -- --
Number of Units 461,045 569,649 -- -- -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 12.54 -- -- -- -- -- -- -- -- -- --
Number of Units 7,266 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.67 -- -- -- -- -- -- -- -- -- --
Number of Units 192,036 -- -- -- -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- -- -- -- -- --
A-48
APPENDIX A
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
YEAR ENDED DECEMBER 31,
------------------------------------------
SUB-ACCOUNT 2004 2003 2002 2001
- ---------------------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) -- TARGET 25 (1999)
WITH NO OPTION AL BENEFITS
Unit Price $ 12.67 -- -- --
Number of Units 10,691 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With GMWB
Unit Value $ 3.85 $ 3.20 -- --
Number of Units 1,459,833 1,541,426 -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- --
Number of Units -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 16.61 -- -- --
Number of Units 33,213 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 12.61 -- -- --
Number of Units 831,735 -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- --
Number of Units -- -- -- --
SP WILLIAM BLAIR INTERNATIONAL GROWTH
WITH NO OPTION AL BENEFITS
Unit Price $ 10.53 -- -- --
Number of Units 14,108 -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price $ 10.53 -- -- --
Number of Units 3,389 -- -- --
With GMWB
Unit Price $ 10.53 -- -- --
Number of Units 5,733 -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price $ 10.53 -- -- --
Number of Units 1,476 -- -- --
With any one of EBP or HAV and GMWB
Unit Value $ 10.53 -- -- --
Number of Units 18,568 -- -- --
With HAV, EBP and GRO Plus
Unit Price $ 10.53 -- -- --
Number of Units 843,107 -- -- --
With HAV, EBP and GMWB
Unit Value $ 10.53 -- -- --
Number of Units 18,201 -- -- --
YEAR ENDED DECEMBER 31,
-----------------------------------------------------------
SUB-ACCOUNT 2000 1999 1998 1997 1996 1995 1994
- --------------------------------------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) -- TARGET 25 (1999)
WITH NO OPTION AL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
SP WILLIAM BLAIR INTERNATIONAL GROWTH
WITH NO OPTION AL BENEFITS
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With GMWB
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any two of GRO Plus, EBP or HAV
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With any one of EBP or HAV and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GRO Plus
Unit Price -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
With HAV, EBP and GMWB
Unit Value -- -- -- -- -- -- --
Number of Units -- -- -- -- -- -- --
A-49
APPENDIX A
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Appendix A -- Condensed Financial Information About Separate Account B continued
1: Effective May 2, 2005 the name of the AST State Street Research Small-Cap
Growth Portfolio has changed to AST Small-Cap Growth Portfolio.
2: Effective May 2, 2005 the name of the AST Alliance Growth Portfolio has
changed to AST AllianceBernstein Large-Cap Growth Portfolio.
3: Effective May 2, 2005 the name of the AST Alliance/Bernstein Growth + Value
Portfolio has changed to AST AllianceBernstein Growth + Value Portfolio.
4: Effective May 2, 2005 the name of the AST Sanford Bernstein Core Value
Portfolio has changed to AST AllianceBernstein Core Value Portfolio.
5: Effective May 2, 2005 the name of the AST Sanford Bernstein Managed Index
500 Portfolio has changed to AST AllianceBernstein Managed Index 500
Portfolio.
6: Effective May 2, 2005 the name of the AST Alliance Growth and Income
Portfolio has changed to AST AllianceBernstein Growth & Income Portfolio.
7: Effective May 2, 2005 the name of the AST DeAM Global Allocation Portfolio
has changed to AST Global Allocation Portfolio.
8: Effective May 2, 2005 the name of the Wells Fargo Variable Trust Equity
Value Portfolio has changed to Wells Fargo Variable Trust Advantage C&B
Large-Cap Value Portfolio.
9: Effective May 2, 2005 the name of the Wells Fargo Variable Trust Equity
Income Portfolio has changed to Wells Fargo Variable Trust Advantage Equity
Income Portfolio.
10: Effective April 15, 2005 the name of the Evergreen VA -- Special Equity
Portfolio has changed to Evergreen VA Growth Portfolio.
11: Effective May 2, 2005 the name of the First Trust Global Target 15
Portfolio has changed to First Trust Global Dividend Target 15 Portfolio.
A-50
APPENDIX B
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Appendix B -- Calculation of Optional Death Benefits
EXAMPLES OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT CALCULATION
The following are examples of how the Enhanced Beneficiary Protection Optional
Death Benefit is calculated. Each example assumes that a $50,000 initial
Purchase Payment is made. Each example assumes that there is one Owner who is
age 50 on the Issue Date and that all Account Value is maintained in the
variable investment options. The formula for determining the Enhanced
Beneficiary Protection Optional Death Benefit is as follows:
Account Value of variable
investment options plus Interim Purchase Payments -
Growth = Value of Fixed Allocations minus proportional withdrawals
(no MVA applies)
Example with market increase
Assume that the Owner has made no withdrawals and that the Account Value has
been increasing due to positive market performance. On the date we receive due
proof of death, the Account Value is $75,000. The basic Death Benefit is
calculated as Purchase Payments minus proportional withdrawals, or Account
Value, which ever is greater. Therefore, the basic Death Benefit is equal to
$75,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to
the amount payable under the basic Death Benefit ($75,000) PLUS 40% of the
"Growth" under the Annuity.
Growth = $75,000 - [$50,000 - $0]
= $ 25,000
Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit =
40% of Growth
= $25,000 x 0.40
= $10,000
Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection
Optional Death Benefit
= $ 85,000
Examples with market decline
Assume that the Owner has made no withdrawals and that the Account Value has
been decreasing due to declines in market performance. On the date we receive
due proof of death, the Account Value is $45,000. The basic Death Benefit is
calculated as Purchase Payments minus proportional withdrawals, or Account
Value, which ever is greater. Therefore, the basic Death Benefit is equal to
$50,000. The Enhanced Beneficiary Protection Optional Death Benefit is equal to
the amount payable under the basic Death Benefit ($50,000) PLUS the "Growth"
under the Annuity.
Growth = $45,000 - [$50,000 - $0]
= $ -5,000
Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit =
40% of Growth
NO BENEFIT IS PAYABLE
Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary Protection
Optional Death Benefit
= $ 50,000
B-1
APPENDIX B
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Appendix B -- Calculation of Optional Death Benefits continued
IN THIS EXAMPLE YOU WOULD RECEIVE NO ADDITIONAL BENEFIT FROM PURCHASING THE
ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT.
Example with market increase and withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 5 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $90,000. The basic Death Benefit is calculated as Purchase
Payments minus proportional withdrawals, or Account Value, which ever is
greater. Therefore, the basic Death Benefit is equal to $90,000. The Enhanced
Beneficiary Protection Optional Death Benefit is equal to the amount payable
under the basic Death Benefit ($90,000) PLUS 40% of the "Growth" under the
Annuity.
Growth = $90,000 - [$50,000 - ($50,000 x $15,000/$75,000)]
= $90,000 - [$50,000 - $10,000]
= $90,000 - $40,000
= $50,000
Benefit Payable under Enhanced Beneficiary Protection Optional Death Benefit =
40% of Growth
= $50,000 x 0.40
= $20,000
Benefit Payable under Basic Death Benefit PLUS Enhanced Beneficiary
Protection Optional Death Benefit
= $ 110,000
EXAMPLES OF HIGHEST ANNIVERSARY VALUE DEATH BENEFIT CALCULATION
The following are examples of how the Highest Anniversary Value Death Benefit is
calculated. Each example assumes an initial Purchase Payment of $50,000. Each
example assumes that there is one Owner who is age 70 on the Issue Date and that
all Account Value is maintained in the variable investment options.
Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the date
we receive due proof of death, the Account Value is $75,000; however, the
Anniversary Value on the 5(th) anniversary of the Issue Date was $90,000. Assume
as well that the Owner has died before the Death Benefit Target Date. The Death
Benefit is equal to the greater of the Highest Anniversary Value or the basic
Death Benefit. The Death Benefit would be the Highest Anniversary Value
($90,000) because it is greater than the amount that would have been payable
under the basic Death Benefit ($75,000).
Example with withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $80,000; however, the Anniversary Value on the 5th anniversary
of the Issue Date was $90,000. Assume as well that the Owner has died before the
Death Benefit Target Date. The Death Benefit is equal to the greater of the
Highest Anniversary Value or the basic Death Benefit.
Highest Anniversary Value = $90,000 - [$90,000 x $15,000/$75,000]
= $90,000 - $18,000
= $ 72,000
Basic Death Benefit = max [$80,000, $50,000 - ($50,000 x
($15,000/$75,000)]
= max [$80,000, $40,000]
= $ 80,000
The Death Benefit therefore is $80,000.
B-2
APPENDIX B
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Example with death after Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals had been made prior to the
Death Benefit Target Date. Further assume that the Owner dies after the Death
Benefit Target Date, when the Account Value is $75,000. The Highest Anniversary
Value on the Death Benefit Target Date was $80,000; however, following the Death
Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had
taken a withdrawal of $5,000 when the Account Value was $70,000. The Death
Benefit is equal to the greater of the Highest Anniversary Value plus Purchase
Payments minus proportional withdrawals after the Death Benefit Target Date or
the basic Death Benefit.
Highest Anniversary Value = $80,000 + $15,000 - [($80,000 + $15,000) x
$5,000/$70,000]
= $80,000 + $15,000 - $6,786
= $ 88,214
Basic Death Benefit = max [$75,000, ($50,000 + $15,000) -
{($50,000 + $15,000) x $5,000/$70,000}]
= max [$75,000, $60,357]
= $ 75,000
The Death Benefit therefore is $88,214.
EXAMPLES OF COMBINATION 5% ROLL-UP AND HIGHEST ANNIVERSARY VALUE DEATH BENEFIT
CALCULATION
The following are examples of how the Combination 5% Roll-Up and Highest
Anniversary Value Death Benefit are calculated. Each example assumes an initial
Purchase Payment of $50,000. Each example assumes that there is one Owner who is
age 70 on the Issue Date and that all Account Value is maintained in the
variable investment options.
Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the 7th
anniversary of the Issue Date we receive due proof of death, at which time the
Account Value is $75,000; however, the Anniversary Value on the 5th anniversary
of the Issue Date was $90,000. Assume as well that the Owner has died before the
Death Benefit Target Date. The Roll-Up Value is equal to initial Purchase
Payment accumulated at 5% for 6 years, or $67,005. The Death Benefit is equal to
the greatest of the Roll-Up Value, Highest Anniversary Value or the basic Death
Benefit. The Death Benefit would be the Highest Anniversary Value ($90,000)
because it is greater than both the Roll-Up Value ($67,005) and the amount that
would have been payable under the basic Death Benefit ($75,000).
Example with withdrawals
Assume that the Owner made a withdrawal of $5,000 on the 6th anniversary of the
Issue Date when the Account Value was $45,000. The Roll-Up Value on the 6th
anniversary of the Issue Date is equal to initial Purchase Payment accumulated
at 5% for 6 years, or $67,005. The 5% Dollar-for-Dollar Withdrawal Limit for the
7th annuity year is equal to 5% of the Roll-Up Value as of the 6th anniversary
of the Issue Date, or $3,350. Therefore, the remaining $1,650 of the withdrawal
results in a proportional reduction to the Roll-Up Value. On the 7th anniversary
of the Issue Date we receive due proof of death, at which time the Account Value
is $43,000; however, the Anniversary Value on the 2nd anniversary of the Issue
Date was $70,000. Assume as well that the Owner has died before the Death
Benefit Target Date. The Death Benefit is equal to the greatest of the Roll-Up
Value, Highest Anniversary Value or the basic Death Benefit.
B-3
APPENDIX B
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTUS
Appendix B -- Calculation of Optional Death Benefits continued
Roll-Up Value = {(67,005 - $3,350) - [($67,005 - $3,350) x
$1,650/($45,000 -$3,350)]} x 1.05
= ($63,655 - $2,522) x 1.05
= $ 64,190
Highest Anniversary Value = $70,000 - [$70,000 x $5,000 / $45,000]
= $70,000 - $7,778
= $ 62,222
Basic Death Benefit = max [$43,000, $50,000 - ($50,000 x
$5,000/$45,000)]
= max [$43,000, $44,444]
= $ 44,444
The Death Benefit therefore is $64,190.
Example with death after Death Benefit Target Date
Assume that the Owner has not made any withdrawals prior to the Death Benefit
Target Date. Further assume that the Owner dies after the Death Benefit Target
Date, when the Account Value is $75,000. The Roll-Up Value on the Death Benefit
Target Date (the contract anniversary on or following the Owner's 80th birthday)
is equal to initial Purchase Payment accumulated at 5% for 10 years, or $81,445.
The Highest Anniversary Value on the Death Benefit Target Date was $85,000;
however, following the Death Benefit Target Date, the Owner made a Purchase
Payment of $15,000 and later had taken a withdrawal of $5,000 when the Account
Value was $70,000. The Death Benefit is equal to the greatest of the Roll-Up
Value, Highest Anniversary Value or the basic Death Benefit as of the Death
Benefit Target Date; each increased by subsequent purchase payments and reduced
proportionally for subsequent withdrawals.
Roll-Up Value = $81,445 + $15,000 - [($81,445 + 15,000) x
$5,000/$70,000]
= $81,445 + $15,000 - $6,889
= $ 89,556
Highest Anniversary Value = $85,000 + $15,000 - [($85,000 + 15,000) x
$5,000/$70,000]
= $85,000 + $15,000 - $7,143
= $ 92,857
Basic Death Benefit = max [$75,000, $50,000 + $15,000 x
{(50,000 + $15,000) - $5,000/$70,000}]
= max [$75,000, $60,357]
= $ 75,000
The Death Benefit therefore is $92,857.
EXAMPLES OF HIGHEST DAILY VALUE DEATH BENEFIT CALCULATION
The following are examples of how the HDV Death Benefit is calculated. Each
example assumes an initial Purchase Payment of $50,000. Each example assumes
that there is one Owner who is age 70 on the Issue Date.
Example with market increase and death before Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals have been made. On the date
we receive due proof of death, the Account Value is $75,000; however, the
Highest Daily Value was $90,000. Assume as well that the Owner has died before
the Death Benefit Target Date. The Death Benefit is equal to the greater of the
Highest Daily Value or the basic Death Benefit. The Death Benefit would be the
HDV ($90,000) because it is greater than the amount that would have been payable
under the basic Death Benefit ($75,000).
B-4
APPENDIX B
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Example with withdrawals
Assume that the Account Value has been increasing due to positive market
performance and the Owner made a withdrawal of $15,000 in Annuity Year 7 when
the Account Value was $75,000. On the date we receive due proof of death, the
Account Value is $80,000; however, the Highest Daily Value ($90,000) was
attained during the fifth Annuity Year. Assume as well that the Owner has died
before the Death Benefit Target Date. The Death Benefit is equal to the greater
of the Highest Daily Value (proportionally reduced by the subsequent withdrawal)
or the basic Death Benefit.
Highest Daily Value = $90,000 - [$90,000 x $15,000/$75,000]
= $90,000 - $18,000
= $ 72,000
Basic Death Benefit = max [$80,000, $50,000 - ($50,000 x
$15,000/$75,000)]
= max [$80,000, $40,000]
= $ 80,000
The Death Benefit therefore is $80,000.
Example with death after Death Benefit Target Date
Assume that the Owner's Account Value has generally been increasing due to
positive market performance and that no withdrawals had been made prior to the
Death Benefit Target Date. Further assume that the Owner dies after the Death
Benefit Target Date, when the Account Value is $75,000. The Highest Daily Value
on the Death Benefit Target Date was $80,000; however, following the Death
Benefit Target Date, the Owner made a Purchase Payment of $15,000 and later had
taken a withdrawal of $5,000 when the Account Value was $70,000. The Death
Benefit is equal to the greater of the Highest Daily Value on the Death Benefit
Target Date plus Purchase Payments minus proportional withdrawals after the
Death Benefit Target Date or the basic Death Benefit.
Highest Daily Value = $80,000 + $15,000 - [($80,000 + $15,000) x
$5,000/$70,000]
= $80,000 + $15,000 - $6,786
= $ 88,214
Basic Death Benefit = max [$75,000, ($50,000 + $15,000) -
{($50,000 + $15,000) x $5,000/$70,000}]
= max [$75,000, $60,357]
= $ 75,000
The Death Benefit therefore is $88,214.
B-5
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APPENDIX C
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Appendix C-1 -- Advisor's Choice Prior Contract
Between November 1993 and July 31, 1997, the American Skandia offered a variable
annuity under the marketing name Advisors Choice(R) which is no longer being
offered ("Choice" or "Prior Contract"). Purchase Payments may continue to be
made to the Prior Contract. Assets supporting the Prior Contracts are maintained
in Sub-account of Separate Account B.
The principle differences between the contracts offered by this Prospectus under
the marketing name Advisors Choice(R) 2000 ("Choice 2" or "Current
Contract") and the Prior Contract relate to the availability of fixed investment
options under the contract, charges made by the Company, and death benefit
provisions.
GLOSSARY OF TERMS
Some of the definitions used in the Choice contract are different from the
definitions used in Choice 2 contract.
The definition of "Account Value" in the Choice 2 prospectus is the same
as the definition of "Account Value" in the Choice prospectus, except for the
inclusion of disclosure related to fixed investment options. Fixed investment
options are not available in the Prior Contract.
The following defined terms in the Choice 2 prospectus relating to the
fixed investment options are not applicable to the Prior Contracts: "Current
Rates," "Fixed Allocation," "Guarantee Period," "Interim Value," "MVA," and
"Maturity Date."
The definition of "Net Purchase Payment" in the CHC2 prospectus is the
same as the definition of "Net Purchase Payment" in the Choice prospectus,
except for the inclusion of any applicable sales charge, initial maintenance fee
and/or charge for taxes in the Choice contracts.
WHAT ARE THE FIXED INVESTMENT OPTIONS?
The Prior Contracts do not offer a fixed investment option. Therefore, any
provisions in this Prospectus that relate to the Fixed Allocations are not
applicable to the Prior Contract.
FEES AND CHARGES
WHAT ARE THE CONTRACT FEES AND CHARGES?
ANNUAL MAINTENANCE FEE: A maintenance fee for the Prior Contract equaling
the lesser of $35 or 2% may be assessed against: (a) the initial Purchase
Payment; and (b) each Annuity Year after the first, the Account Value. It
applies to the initial Purchase Payment only if less than $50,000. It is
assessed, as of the first Valuation Period of each Annuity Year after the first
only if, at that time, the Account Value of the Annuity is less than $50,000.
MANAGING YOUR ACCOUNT VALUE
DO YOU OFFER DOLLAR COST AVERAGING?
Your Choice annuity must have an Account Value of not less than $20,000 at the
time we accept your request for a dollar cost averaging program.
DO YOU OFFER A PROGRAM TO BALANCED FIXED AND VARIABLE INVESTMENTS?
The "Balanced Investment Program" is not available under the Prior Contract.
AMERICAN SKANDIA'S PERFORMANCE ADVANTAGE
This benefit is not available under the Prior Contract.
C-1
APPENDIX C
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTTUS
Appendix C-1 -- Advisor's Choice Prior Contract continued
ACCESS TO ACCOUNT VALUE
CAN I MAKE PERIODIC WITHDRAWALS FROM THE ANNUITY DURING THE ACCUMULATION PERIOD?
Your Choice annuity must have an Account Value of at least $25,000 at the time
we accept your request for a program of Systematic Withdrawals.
WHAT TYPES OF ANNUITY PAYMENT OPTIONS ARE AVAILABLE UPON ANNUITIZATION?
The minimum monthly annuity payment for the Choice contract is $50.00, except
where a lower amount is required by law.
LIVING BENEFITS
The Optional Living Benefits are not available under the Prior Contract.
DEATH BENEFIT
The minimum death benefit for the Choice contract is the total of each Purchase
Payment growing daily at the equivalent of a specified interest rate per year
starting as to each Purchase Payment on the date it is allocated to the Account
Value, less the total of each withdrawal, of any type, growing daily at the
equivalent of the same specified interest rate per year starting as of the date
of each such withdrawal. However, this minimum death benefit may not exceed 200%
of (A) minus (B), where (A) is the total of all Purchase Payment received; and
(B) is the total of all withdrawals of any type.
Currently, the specified rate at which the minimum death benefit increases
is 5% per year, compounded yearly.
OPTIONAL DEATH BENEFITS
The Optional Death Benefits are not available under the Prior Contract.
PLUS40(TM) OPTIONAL LIFE INSURANCE RIDER
The Plus40(TM) Optional Life Insurance Rider is not available under the Prior
Contract.
PERFORMANCE INFORMATION
The calculation of performance information and the Standard Total Return and the
Non-standard Total Return for the Choice Sub-accounts are set forth in the
Choice 2 Statement of Additional Information.
C-2
APPENDIX C
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix C-2 -- Advisor's Design Prior Contract
EXPENSE EXAMPLES
The Expense Examples for the Prior Contract are as follows:
WHETHER OR NOT YOU SURRENDER YOUR CONTRACT AT THE END OF THE APPLICABLE TIME
PERIOD:
1 year 3 years 5 years 10 years
- ------ ------- ------- --------
$ 559 $ 1,664 $ 2,754 $ 5,415
IF YOU ANNUITIZE AT THE END OF THE APPLICABLE TIME PERIOD:
1 year 3 years 5 years 10 years
- ------ ------- ------- --------
$ 559 $ 1,664 $ 2,754 $ 5,415
THE EXPENSE EXAMPLES SHOWN ABOVE ASSUME YOUR ACCOUNT VALUE IS LESS THAN $50,000
SO THAT THE ANNUAL MAINTENANCE FEE APPLIES. IF YOUR ACCOUNT VALUE IS GREATER
THAN $50,000 SUCH THAT THE ANNUAL MAINTENANCE FEE DOES NOT APPLY, THE AMOUNTS
INDICATED IN THE EXPENSE EXAMPLES SHOWN ABOVE WOULD BE REDUCED.
FEES AND CHARGES
WHAT ARE THE CONTRACT FEES AND CHARGES?
SALES CHARGE: The Prior Contract provides for a sales charge in the amount of
1.5% of each Purchase Payment. Any applicable sales charge is deducted from each
Purchase Payment.
EXCEPTIONS/REDUCTIONS TO FEES AND CHARGES
We may reduce or eliminate certain fees and charges or alter the manner in which
the particular fee or charge is deducted. For example, we may reduce the amount
of the CDSC or the length of time it applies, reduce or eliminate the amount of
the Annual Maintenance Fee or reduce the portion of the Insurance Charge for
administrative costs. Generally, these types of changes will be based on a
reduction to our sales, maintenance or administrative expenses due to the nature
of the individual or group purchasing the Annuity. Some of the factors we might
consider in making such a decision are: (a) the size and type of group; (b) the
number of Annuities purchased by an Owner; (c) the amount of Purchase Payments
or likelihood of additional Purchase Payments; and/or (d) other transactions
where sales, maintenance or administrative expenses are likely to be reduced. We
will not discriminate unfairly between Annuity purchasers if and when we reduce
the portion of the Insurance Charge attributed to the charge covering
administrative costs.
No sales charge is imposed when any group annuity contract or any Annuity
issued pursuant to this Prospectus is owned on its Issue Date by: (a) any parent
company, affiliate or subsidiary of ours; (b) an officer, director, employee,
retiree, sales representative, or in the case of an affiliated broker-dealer,
registered representative of such company; (c) a director, officer or trustee of
any underlying mutual fund; (d) a director, officer or employee of any
investment manager, sub-advisor, transfer agent, custodian, auditing, legal or
administrative services provider that is providing investment management,
advisory, transfer agency, custodianship, auditing, legal and/or administrative
services to an underlying mutual fund or any affiliate of such firm; (e) a
director, officer, employee or registered representative of a broker-dealer or
insurance agency that has a then current selling agreement with us and/or with
American Skandia Marketing, Incorporated; (f) a director, officer, employee or
authorized representative of any firm providing us or our affiliates with
regular legal, actuarial, auditing, underwriting, claims, administrative,
computer support, marketing, office or other services; (g) the then current
spouse of any such person noted in (b) through (f), above; (h) the parents of
any such person noted in
C-3
APPENDIX C
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix C-2 -- Advisor's Design Prior Contract continued
(b) through (g), above; (i) the child(ren) or other legal dependent under the
age of 21 of any such person noted in (b) through (h) above; and (j) the
siblings of any such persons noted in (b) through (h) above.
Any elimination of the sales charge or any reduction to the amount of such
charges will not discriminate unfairly between Annuity purchasers. We will not
make any changes to this charge where prohibited by law.
LIVING BENEFITS
The Optional Living Benefits are not available under the Prior Contract.
DEATH BENEFIT
OPTIONAL DEATH BENEFITS
The Optional Death Benefits are not available under the Prior Contract.
PLUS40(TM) OPTIONAL LIFE INSURANCE RIDER
The Plus40(TM) Optional Life Insurance Rider was never available under the Prior
Contract.
C-4
APPENDIX D
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix D -- Performance Advantage
AMERICAN SKANDIA'S PERFORMANCE ADVANTAGE
American Skandia's Performance Advantage was offered, in those states where
approved, between May 15, 1999 and October 22, 2000. The description below of
the Performance Advantage benefit applies to those Contract Owners who purchased
an Annuity during that time period when the Performance Advantage feature was
offered.
GLOSSARY OF TERMS
When determining the Account Value and Surrender Value of the Annuity, both
amounts will not include any Target Value Credits (described below) that we are
entitled to recover upon Surrender of your Annuity.
DO YOU PROVIDE ANY GUARANTEES ON MY INVESTMENT?
The Annuity provides variable investment options and fixed investment options.
Only the fixed investment options provide a guaranteed return on your
investment, subject to certain terms and conditions. However, your Annuity
includes a feature at no additional cost that provides certain benefits if your
Account Value has not reached or exceeded a "target value" on its 10th
anniversary. If, on the 10th anniversary of your Annuity's Issue Date, your
Account Value has not reached the target value (as defined below) you can choose
either of the following benefits:
- You may continue your Annuity without electing to receive
Annuity payments and receive an annual credit to your Account
Value payable until you begin receiving Annuity payments. The
credit is equal to 0.25% of the average of your Annuity's
Account Value for the preceding four complete calendar
quarters. This credit is applied to your investment options
pro-rata based on the allocation of your then current Account
Value.
OR
- You may begin receiving Annuity payments within one year and
accept a one-time credit to your Annuity equal to 10% of the
net of the Account Value on the 10th anniversary of its Issue
Date minus the sum of all Purchase Payments allocated in the
prior five years. The annuity option you select must initially
guarantee payments for not less than seven years.
Following the 10th anniversary of your Annuity's Issue Date, we will
inform you if your Account Value did not meet or exceed the Target Value. We
will assume that you have elected to receive the annual credit to your Account
Value unless, not less than 30 days prior to the next anniversary of the
Annuity, we receive at our home office your election to begin receiving Annuity
payments.
Certain provisions of this benefit and of the Target Value Credits
described below may differ if you purchase your Annuity as part of an exchange,
replacement or transfer, in whole or in part, from any other Annuity we issue.
WHAT IS THE "TARGET VALUE" AND HOW IS IT CALCULATED?
The Target Value is a tool used to determine whether you are eligible to elect
either of the benefits described above. The Target Value does not impact the
Account Value available if you surrender your Annuity or make a partial
withdrawal and does not impact the Death Benefit available to your
Beneficiary(ies). The Target Value assumes a rate of return over ten (10)
Annuity Years that will allow your initial investment to double in value,
adjusted for any withdrawals and/or additional Purchase Payments you make during
the 10 year period. We calculate the "Target Value" as follows:
1. Accumulate the initial Purchase Payment at an annual interest rate
of 7.2% until the 10th anniversary of the Annuity's Issue Date; plus
2. Accumulate any additional Purchase Payments at an annual interest
rate of 7.2% from the date applied until the 10th anniversary of the
Annuity's Issue Date; minus
3. Each "proportional reduction" resulting from any withdrawal,
accumulating at an annual interest rate of 7.2% from the date the
withdrawal is processed until the 10th anniversary of the Annuity's
Issue Date. We determine each "proportional reduction" by
determining the percentage of your Account Value then withdrawn and
reducing the Target Value by that same percentage. We include any
withdrawals under your Annuity in this calculation, as well as the
charge we deduct for any optional benefits you elect under the
Annuity, but not the charge we deduct for the Annual Maintenance Fee
or the Transfer Fee.
D-1
APPENDIX D
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix D -- Performance Advantage continued
EXAMPLES
1. Assume you make an initial Purchase Payment of $10,000 and make no further
Purchase Payments. The Target Value on the 10th anniversary of your
Annuity's Issue Date would be $20,042, assuming no withdrawals are made.
This is equal to $10,000 accumulating at an annual rate of 7.2% for the
10-year period.
2. Assume you make an initial Purchase Payment of $10,000 and make no further
Purchase Payments. Assume at the end of Year 6, your Account Value has
increased to $15,000 and you make a withdrawal of 10% or $1,500. The
Target Value on the 10th anniversary would be $18,722. This is equal to
$10,000 accumulating at an annual rate of 7.2% for the 10-year period,
minus the proportional reduction accumulating at an annual interest rate
of 7.2%.
CAN I RESTART THE 10-YEAR TARGET VALUE CALCULATION?
Yes, you can elect to lock in the growth in your Annuity by "restarting" the
10-year period on any anniversary of the Issue Date. If you elect to restart the
calculation period, we will treat your Account Value on the restart date as if
it was your Purchase Payment when determining if your Annuity's Account Value
meets or exceeds the Target Value on the appropriate tenth (10th) anniversary.
You may elect to restart the calculation more than once, in which case, the
10-year calculation period will begin on the date of the last restart date. We
must receive your election to restart the calculation at our home office not
later than 30 days after each anniversary of the Issue Date.
WHAT ARE TARGET VALUE CREDITS?
Target Value Credits are additional amounts that we apply to your Account Value
to increase the likelihood that your Account Value will meet or exceed the
Target Value. We add Target Value Credits to your Account Value at the time a
Purchase Payment is applied to your Annuity. Only those Purchase Payments made
before the first anniversary of the Issue Date of your Annuity are eligible to
receive Target Value Credits.
The amount of the Target Value Credit is equal to 1.0% of each qualifying
Purchase Payment. Target Value Credits are only payable on qualifying Purchase
Payments if the Owner(s) of the Annuity is (are) less than age 81 on its Issue
Date. If the Annuity is owned by an entity, the age restriction applies to the
age of the Annuitant on the Issue Date. The Target Value Credit is payable from
our general account and is allocated to the investment options in the same ratio
that the qualifying Purchase Payment is allocated.
Target Value Credits will not be available if you purchase your Annuity as
part of an exchange, replacement or transfer, in whole or in part, of an Annuity
we issued that has the same or a similar benefit.
THE AMOUNT OF ANY TARGET VALUE CREDITS ARE NOT IMMEDIATELY VESTED AND CAN BE
RECOVERED BY AMERICAN SKANDIA UNDER THE CIRCUMSTANCES AND FOR THE TIME PERIODS
SHOWN BELOW. IF AMERICAN SKANDIA EXERCISES ITS RIGHT TO RECOVER THE AMOUNT OF
ANY TARGET VALUE CREDIT, ANY INVESTMENT GAIN ON THE TARGET VALUE CREDIT WILL NOT
BE TAKEN BACK.
1. If you surrender your Annuity before the 10th anniversary of the
Issue Date of the Annuity.
2. If you elect to begin receiving Annuity payments before the first
anniversary of the Issue Date.
3. If a person on whose life we pay the Death Benefit dies, or if a
"contingency event" occurs which triggers a medically-related
surrender:
- within 12 months after the date a Target Value Credit was
allocated to your Account Value; or
- within 10 years after the date a Target Value Credit was
allocated to your Account Value if any owner was over age 70
on the Issue Date, or, if the Annuity was then owned by an
entity, the Annuitant was over age 70 on the Issue Date.
Following completion of the above time periods, the amount of any Target
Value Credits are vested in the Owner.
D-2
APPENDIX E
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix E -- Plus40(TM) Optional Life Insurance Rider
AMERICAN SKANDIA'S PLUS40(TM) OPTIONAL LIFE INSURANCE RIDER WAS OFFERED, IN
THOSE STATES WHERE APPROVED, BETWEEN SEPTEMBER 17, 2001 AND MAY 1, 2003. THE
DESCRIPTION BELOW OF THE PLUS40(TM) BENEFIT APPLIES TO THOSE CONTRACT OWNERS WHO
PURCHASED AN ANNUITY DURING THAT TIME PERIOD AND ELECTED THE PLUS40(TM) BENEFIT.
THE LIFE INSURANCE COVERAGE PROVIDED UNDER THE PLUS40(TM) OPTIONAL LIFE
INSURANCE RIDER ("PLUS40(TM) RIDER" OR THE "RIDER") IS SUPPORTED BY AMERICAN
SKANDIA'S GENERAL ACCOUNT AND IS NOT SUBJECT TO, OR REGISTERED AS A SECURITY
UNDER, EITHER THE SECURITIES ACT OF 1933 OR THE INVESTMENT COMPANY ACT OF 1940.
INFORMATION ABOUT THE PLUS40(TM) RIDER IS INCLUDED AS AN APPENDIX TO THIS
PROSPECTUS TO HELP YOU UNDERSTAND THE RIDER AND THE RELATIONSHIP BETWEEN THE
RIDER AND THE VALUE OF YOUR ANNUITY. IT IS ALSO INCLUDED BECAUSE YOU CAN ELECT
TO PAY FOR THE RIDER WITH TAXABLE WITHDRAWALS FROM YOUR ANNUITY. THE STAFF OF
THE SECURITIES AND EXCHANGE COMMISSION HAS NOT REVIEWED THIS INFORMATION.
HOWEVER, THE INFORMATION MAY BE SUBJECT TO CERTAIN GENERALLY APPLICABLE
PROVISIONS OF THE FEDERAL SECURITIES LAWS REGARDING ACCURACY AND COMPLETENESS.
THE INCOME TAX-FREE LIFE INSURANCE PAYABLE TO YOUR BENEFICIARY(IES) UNDER
THE PLUS40(TM) RIDER IS EQUAL TO 40% OF THE ACCOUNT VALUE OF YOUR ANNUITY AS OF
THE DATE WE RECEIVE DUE PROOF OF DEATH, SUBJECT TO CERTAIN ADJUSTMENTS,
RESTRICTIONS AND LIMITATIONS DESCRIBED BELOW.
ELIGIBILITY
The Plus40(TM) rider may be purchased as a rider on your Annuity. The Rider must
cover those persons upon whose death the Annuity's death benefit becomes payable
- -- the Annuity's owner or owners, or the Annuitant (in the case of an entity
owned Annuity). If the Annuity has two Owners, the Rider's death benefit is
payable upon the first death of such persons. If the Annuity is owned by an
entity, the Rider's death benefit is payable upon the death of the Annuitant,
even if a Contingent Annuitant is named.
The minimum allowable age to purchase the Plus40(TM) rider is 40; the
maximum allowable age is 75. If the Rider is purchased on two lives, both
persons must meet the age eligibility requirements. The Plus40(TM) rider is not
available to purchasers who use their Annuity as a funding vehicle for a Tax
Sheltered Annuity (or 403(b)) or as a funding vehicle for a qualified plan under
Section 401 of the Internal Revenue Code ("Code").
ADJUSTMENTS, RESTRICTIONS & LIMITATIONS
- If you die during the first 24 months following the effective date
of the Plus40(TM) rider (generally, the Issue Date of your Annuity),
the death benefit will be limited to the amount of any charges paid
for the Rider while it was in effect. While we will return the
charges you have paid during the applicable period as the death
benefit, your Beneficiary(ies) will receive no additional life
insurance benefit from the Plus40(TM) rider if you die within 24
months of its effective date.
- If you make a Purchase Payment within 24 months prior to the date of
death, the Account Value used to determine the amount of the death
benefit will be reduced by the amount of such Purchase Payment(s).
If we reduce the death benefit payable under the Plus40(TM) rider
based on this provision, we will return 50% of any charges paid for
the Rider based on those Purchase Payments as an additional amount
included in the death benefit under the Rider.
- If we apply Credits to your Annuity based on Purchase Payments, such
Credits are treated as Account Value for purposes of determining the
death benefit payable under the Plus40(TM) rider. However, if
Credits were applied to Purchase Payments made within 24 months
prior to the date of death, the Account Value used to determine the
amount of the death benefit will be reduced by the amount of such
Credits. If we reduce the death benefit payable under the Plus40(TM)
rider based on this provision, we will return 50% of any charges
paid for the Rider based on such Credits as an additional amount
included in the death benefit under the Rider.
- If you become terminally ill (as defined in the Rider) and elect to
receive a portion of the Plus40(TM) rider's death benefit under the
Accelerated Death Benefit provision, the amount that will be payable
under the Rider upon your death will be reduced. Please refer to the
Accelerated Death Benefit provision described below.
- If charges for the Plus40(TM) rider are due and are unpaid as of the
date the death benefit is being determined, such charges will be
deducted from the amount paid to your Beneficiary(ies).
E-1
APPENDIX E
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix E -- Plus40(TM) Optional Life Insurance Rider continued
- If the age of any person covered under the Plus40(TM) rider is
misstated, we will adjust any coverage under the Rider to conform to
the facts. For example, if, due to the misstatement, we overcharged
you for coverage under the Rider, we will add any additional charges
paid to the amount payable to your Beneficiary(ies). If, due to the
misstatement, we undercharged you for coverage under the Rider, we
will reduce the death benefit in proportion to the charges not paid
as compared to the charges that would have been paid had there been
no misstatement.
- On or after an Owner reaches the expiry date of the Rider (the
anniversary of the Annuity's Issue Date on or immediately after the
95th birthday), coverage will terminate. No charge will be made for
an Owner following the expiry date. If there are two Owners, the
expiry date applies separately to each Owner; therefore, coverage
may continue for one Owner and terminate as to the other Owner.
MAXIMUM BENEFIT
The Plus40(TM) rider is subject to a Maximum Death Benefit Amount based on the
Purchase Payments applied to your Annuity. The Plus40(TM) rider may also be
subject to a Per Life Maximum Benefit that is based on all amounts paid under
any annuity contract we issue to you under which you have elected the Plus40(TM)
rider or similar life insurance coverage.
- The Maximum Death Benefit Amount is 100% of the Purchase Payments
increasing at 5% per year following the date each Purchase Payment
is applied to the Annuity until the date of death. If Purchase
Payments are applied to the Annuity within 24 months prior to the
date of death, the Maximum Death Benefit Amount is decreased by the
amount of such Purchase Payments.
- The Per Life Maximum Benefit applies to Purchase Payments applied to
any such annuity contracts more than 24 months from the date of
death that exceed $1,000,000. If you make Purchase Payments in
excess of $1,000,000, we will reduce the aggregate death benefit
payable under all Plus40(TM) riders, or similar riders issued by us,
based on the combined amount of Purchase Payments in excess of
$1,000,000 multiplied by 40%. If the Per Life Maximum Benefit
applies, we will reduce the amount payable under each applicable
Plus40(TM) rider on a pro-rata basis. If the Per Life Maximum
Benefit applies upon your death, we will return any excess charges
that you paid on the portion of your Account Value on which no
benefit is payable. The Per Life Maximum Benefit does not limit the
amount of Purchase Payments that you may apply to your Annuity.
ACCELERATED DEATH BENEFIT PROVISION
If you become terminally ill, you may request that a portion of the death
benefit payable under the Plus40(TM) rider be prepaid instead of being paid to
your Beneficiary(ies) upon your death. Subject to our requirements and where
allowed by law, we will make a one time, lump sum payment. Our requirements
include proof satisfactory to us, in writing, of terminal illness after the
Rider's Effective Date.
The maximum we will pay, before any reduction, is the lesser of 50% of the
Rider's death benefit or $100,000. If you elect to accelerate payment of a
portion of the death benefit under the Plus40(TM) rider, the amount of the
remaining death benefit is reduced by the prepaid amount accumulating at an
annualized interest rate of 6.0%. Eligibility for an accelerated payout of a
portion of your Plus40(TM) rider death benefit may be more restrictive than any
medically-related surrender provision that may be applicable to you under the
Annuity.
CHARGES FOR THE PLUS40(TM) RIDER
The Plus40(TM) rider has a current charge and a guaranteed maximum charge. The
current charge for the Plus40(TM) rider is based on a percentage of your Account
Value as of the anniversary of the Issue Date of your Annuity. The applicable
percentages differ based on the attained age, last birthday of the Owner(s) or
Annuitant (in the case of an entity owned Annuity) as of the date the charge is
due. We reserve the right to change the current charge, at any time, subject to
regulatory approval where required. If there are two Owners, we calculate the
current charge that applies to each Owner individually and deduct the combined
amount as the charge for the Rider. There is no charge based on a person's life
after coverage expires as to that person. However, a charge will still apply to
the second of two Owners (and coverage will continue for such Owner) if such
Owner has not reached the expiry date.
E-2
APPENDIX E
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
PERCENTAGE OF
ATTAINED AGE ACCOUNT VALUE
Age 40-75 .80%
Age 76-80 1.60%
Age 81-85 3.20%
Age 86-90 4.80%
Age 91 6.50%
Age 92 7.50%
Age 93 8.50%
Age 94 9.50%
Age 95 10.50%
The charge for the Plus40(TM) rider may also be subject to a guaranteed
maximum charge that will apply if the current charge, when applied to the
Account Value, exceeds the guaranteed maximum charge. The guaranteed maximum
charge is based on a charge per $1,000 of insurance.
We determine the charge for the Rider annually, in arrears. We deduct the
charge: (1) upon your death; (2) on each anniversary of the Issue Date; (3) on
the date that you begin receiving annuity payments; (4) if you surrender your
Annuity other than a medically-related surrender; or (5) if you choose to
terminate the Rider. If the Rider terminates for any of the preceding reasons on
a date other than the anniversary of the Annuity's Issue Date, the charge will
be prorated. During the first year after the Annuity's Issue Date, the charge
will be prorated from the Issue Date. In all subsequent years, the charge will
be prorated from the last anniversary of the Issue Date.
You can elect to pay the annual charge through a redemption from your
Annuity's Account Value or through funds other than those within the Annuity. If
you do not elect a method of payment, we will automatically deduct the annual
charge from your Annuity's Account Value. The manner in which you elect to pay
for the Rider may have tax implications.
- If you elect to pay the charge through a redemption of your
Annuity's Account Value, the withdrawal will be treated as a taxable
distribution, and will generally be subject to ordinary income tax
on the amount of any investment gain withdrawn. If you are under age
591/2, the distribution may also be subject to a 10% penalty on any
gain withdrawn, in addition to ordinary income taxes. We first
deduct the amount of the charge pro-rata from the Account Value in
the variable investment options. We only deduct the charge pro-rata
from the Fixed Allocations to the extent there is insufficient
Account Value in the variable investment options to pay the charge.
- If you elect to pay the charge through funds other than those from
your Annuity, we require that payment be made electronically in U.S.
currency through a U.S. financial institution. If you elect to pay
the charge through electronic transfer of funds and payment has not
been received within 31 days from the due date, we will deduct the
charge as a redemption from your Annuity, as described above.
TERMINATION
You can terminate the Plus40(TM) rider at any time. Upon termination, you will
be required to pay a pro-rata portion of the annual charge for the Rider. The
Plus40(TM) rider will terminate automatically on the date your Account Value is
applied to begin receiving annuity payments, on the date you surrender the
Annuity or, on the expiry date with respect to such person who reaches the
expiry date. We may also terminate the Plus40(TM) rider, if necessary, to comply
with our interpretation of the Code and applicable regulations. Once terminated,
you may not reinstate your coverage under the Plus40(TM) rider.
CHANGES IN ANNUITY DESIGNATIONS
Changes in ownership and annuitant designations under the Annuity may result in
changes in eligibility and charges under the Plus40(TM) rider. These changes may
include termination of the Rider. Please refer to the Rider for specific
details.
E-3
APPENDIX E
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix E -- Plus40(TM) Optional Life Insurance Rider continued
SPOUSAL ASSUMPTION
A spousal beneficiary may elect to assume ownership of the Annuity instead of
taking the Annuity's Death Benefit. However, regardless of whether a spousal
beneficiary assumes ownership of the Annuity, THE DEATH BENEFIT UNDER THE
PLUS40(TM) RIDER WILL BE PAID DESPITE THE FACT THAT THE ANNUITY WILL CONTINUE.
The spousal beneficiary can apply the death benefit proceeds under the
Plus40(TM) rider to the Annuity as a new Purchase Payment, can purchase a new
annuity contract or use the death benefit proceeds for any other purpose.
Certain restrictions may apply to an Annuity that is used as a qualified
investment. Spousal beneficiaries may also be eligible to purchase the
Plus40(TM) rider, in which case the Annuity's Account Value, as of the date the
assumption is effective, will be treated as the initial Purchase Payment under
applicable provisions of the Rider.
TAX CONSIDERATION
The Plus40(TM) rider was designed to qualify as a life insurance contract under
the Code. As life insurance, under most circumstances, the Beneficiary(ies) does
not pay any Federal income tax on the death benefit payable under the Rider.
If your Annuity is being used as an Individual Retirement Annuity (IRA),
we consider the Plus40(TM) rider to be outside of your IRA, since premium for
the Rider is paid for either with funds outside of your Annuity or with
withdrawals previously subject to tax and any applicable tax penalty.
We believe payments under the accelerated payout provision of the Rider
will meet the requirements of the Code and the regulations in order to qualify
as tax-free payments. To the extent permitted by law, we will change our
procedures in relation to the Rider, or the definition of terminally ill, or any
other applicable term in order to maintain the tax-free status of any amounts
paid out under the accelerated payout provision.
E-4
APPENDIX F
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix F -- Description and Calculation of Previously Offered Optional Death
Benefits
If you purchased your Annuity before November 18, 2002 and were not a resident
of the State of New York, the following optional death benefits were offered:
ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
The Enhanced Beneficiary Protection Optional Death Benefit can provide
additional amounts to your Beneficiary that may be used to offset federal and
state taxes payable on any taxable gains in your Annuity at the time of your
death. Whether this benefit is appropriate for you may depend on your particular
circumstances, including other financial resources that may be available to your
Beneficiary to pay taxes on your Annuity should you die during the accumulation
period. No benefit is payable if death occurs on or after the Annuity Date.
THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT PROVIDES A
BENEFIT THAT IS PAYABLE IN ADDITION TO THE BASIC DEATH BENEFIT. If the Annuity
has one Owner, the Owner must be age 75 or less at the time the benefit is
purchased. If the Annuity has joint Owners, the oldest Owner must be age 75 or
less. If the Annuity is owned by an entity, the Annuitant must be age 75 or
less.
CALCULATION OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT
If you purchase the Enhanced Beneficiary Protection Optional Death Benefit, the
Death Benefit is calculated as follows:
1. the basic Death Benefit described above
PLUS
2. 50% of the "DEATH BENEFIT AMOUNT" less Purchase Payments reduced by
proportional withdrawals.
"DEATH BENEFIT AMOUNT" includes your Account Value and any amounts added
to your Account Value under the basic Death Benefit when the Death Benefit is
calculated. Under the basic Death Benefit, amounts are added to your Account
Value when the Account Value is less than Purchase Payments minus proportional
withdrawals.
"PROPORTIONAL WITHDRAWALS" are determined by calculating the percentage of
your Account Value that each prior withdrawal represented when withdrawn
THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT IS SUBJECT TO A
MAXIMUM OF 50% OF ALL PURCHASE PAYMENTS APPLIED TO THE ANNUITY AT LEAST 12
MONTHS PRIOR TO THE DEATH OF THE DECEDENT THAT TRIGGERS THE PAYMENT OF THE DEATH
BENEFIT.
PLEASE REFER TO THE SECTION ENTITLED "TAX CONSIDERATIONS" FOR A DISCUSSION OF
SPECIAL TAX CONSIDERATIONS FOR PURCHASERS OF THIS BENEFIT.
NOTE: YOU MAY NOT ELECT THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH
BENEFIT IF YOU HAVE ELECTED ANY OTHER OPTIONAL DEATH BENEFIT.
GUARANTEED MINIMUM DEATH BENEFIT
If the Annuity has one Owner, the Owner must be age 80 or less at the time the
optional Death Benefit is purchased. If the Annuity has joint Owners, the oldest
Owner must be age 80 or less. If the Annuity is owned by an entity, the
Annuitant must be age 80 or less.
KEY TERMS USED WITH THE GUARANTEED MINIMUM DEATH BENEFIT
- - The Death Benefit Target Date is the contract anniversary on or after the
80th birthday of the current Owner, the oldest of either joint Owner or
the Annuitant, if entity owned.
- - The Highest Anniversary Value equals the highest of all previous
"Anniversary Values" on or before the earlier of the Owner's date of death
and the "Death Benefit Target Date".
F-1
APPENDIX F
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTUS
Appendix F -- Description and Calculation of
Previously Offered Optional Death Benefits continued
- - The Anniversary Value is the Account Value as of each anniversary of the
Issue Date plus the sum of all Purchase Payments on or after such
anniversary less the sum of all "Proportional Reductions" since such
anniversary.
- - A Proportional Reduction is a reduction to the value being measured caused
by a withdrawal, equaling the percentage of the withdrawal as compared to
the Account Value as of the date of the withdrawal. For example, if your
Account Value is $10,000 and you withdraw $2,000 (a 20% reduction), we
will reduce both your Anniversary Value and the amount determined by
Purchase Payments increasing at the appropriate interest rate by 20%.
CALCULATION OF GUARANTEED MINIMUM DEATH BENEFIT
The Guaranteed Minimum Death Benefit depends on whether death occurs before or
after the Death Benefit Target Date.
If the Owner dies before the Death Benefit Target Date, the Death Benefit equals
the greatest of:
1. the Account Value in the Sub-accounts plus the Interim Value of any Fixed
Allocations (no MVA) as of the date we receive in writing "due proof of
death"; and
2. the sum of all Purchase Payments minus the sum of all Proportional
Reductions, each increasing daily until the Owner's date of death at a
rate of 5.0%, subject to a limit of 200% of the difference between the sum
of all Purchase Payments and the sum of all withdrawals as of the Owner's
date of death; and
3. the "Highest Anniversary Value" on or immediately preceding the Owner's
date of death.
The amount determined by this calculation is increased by any Purchase Payments
received after the Owner's date of death and decreased by any Proportional
Reductions since such date.
If the Owner dies on or after the Death Benefit Target Date, the Death Benefit
equals the greater of:
1. the Account Value as of the date we receive in writing "due proof of
death" (an MVA may be applicable to amounts in any Fixed Allocations); and
2. the greater of Item 2 & 3 above on the Death Benefit Target Date plus the
sum of all Purchase Payments less the sum of all Proportional Reductions
since the Death Benefit Target Date.
Between May 15, 1999 and January 22, 2001, in those jurisdictions where we
received regulatory approval, American Skandia offered the Guaranteed Minimum
Death Benefit with a 7.2% accumulation rate. This Benefit will apply to Annuity
Owners who purchased the Annuity and elected the 7.2% GMDB during the period it
was offered.
ANNUITIES WITH JOINT OWNERS
For Annuities with Joint Owners, the Death Benefit is calculated as shown above
except that the age of the oldest of the Joint Owners is used to determine the
Death Benefit Target Date. NOTE: If you and your spouse own the Annuity jointly,
we will pay the Death Benefit to the Beneficiary. If the sole primary
Beneficiary is the surviving spouse, then the surviving spouse can elect to
assume ownership of the Annuity and continue the contract instead of receiving
the Death Benefit.
ANNUITIES OWNED BY ENTITIES
For Annuities owned by an entity, the Death Benefit is calculated as shown above
except that the age of the Annuitant is used to determine the Death Benefit
Target Date. Payment of the Death Benefit is based on the death of the Annuitant
(or Contingent Annuitant, if applicable).
CAN I TERMINATE THE OPTIONAL DEATH BENEFITS? DO THE OPTIONAL DEATH BENEFITS
TERMINATE UNDER OTHER CIRCUMSTANCES?
You can terminate the Enhanced Beneficiary Protection Optional Death Benefit and
the Guaranteed Minimum Death Benefit at any time. Upon termination, you will be
required to pay a pro-rata portion of the annual charge for the benefit. Both
optional Death Benefits will terminate automatically on the Annuity Date. We may
also terminate any optional Death Benefit if necessary to comply with our
interpretation of the Code and applicable regulations.
F-2
APPENDIX F
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTUS
WHAT ARE THE CHARGES FOR THE OPTIONAL DEATH BENEFITS?
We deduct a charge from your Account Value if you elect to purchase either
optional Death Benefit. The Enhanced Beneficiary Protection Death Benefit costs
0.25% of Account Value. The Guaranteed Minimum Death Benefit costs 0.35% of the
current Death Benefit. The charges for these death benefits are deducted in
arrears each Annuity Year. No charge applies after the Annuity Date. We deduct
the charge:
1. on each anniversary of the Issue Date;
2. when Account Value is transferred to our general account prior to the
Annuity Date;
3. if you surrender your Annuity; and
4. if you choose to terminate the benefit (Enhanced Beneficiary Protection
Optional Death Benefit only).
If you surrender the Annuity, elect to begin receiving annuity payments or
terminate the benefit on a date other than an anniversary of the Issue Date, the
charge will be prorated. During the first year after the Issue Date, the charge
will be prorated from the Issue Date. In all subsequent years, it would be
prorated from the last anniversary of the Issue Date.
We first deduct the amount of the charge pro-rata from the Account Value
in the variable investment options. We only deduct the charge pro-rata from the
Fixed Allocations to the extent there is insufficient Account Value in the
variable investment options to pay the charge. If your Annuity's Account Value
is insufficient to pay the charge, we may deduct your remaining Account Value
and terminate your Annuity. We will notify you if your Account Value is
insufficient to pay the charge and allow you to submit an additional Purchase
Payment to continue your Annuity.
Please refer to the section entitled "Tax Considerations" for additional
considerations in relation to the optional Death Benefit.
ADDITIONAL CALCULATIONS
EXAMPLES OF ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT CALCULATION
The following are examples of how the Enhanced Beneficiary Protection Optional
Death Benefit is calculated. Each example assumes that a $50,000 initial
Purchase Payment is made and that no withdrawals are made prior to the Owner's
death. Each example assumes that there is one Owner who is age 50 on the Issue
Date and that all Account Value is maintained in the variable investment
options.
Example with market increase
Assume that the Owner's Account Value has been increasing due to positive market
performance. On the date we receive due proof of death, the Account Value is
$75,000. The basic Death Benefit is calculated as Purchase Payments minus
proportional withdrawals, or Account Value, which ever is greater. Therefore,
the basic Death Benefit is equal to $75,000. The Enhanced Beneficiary Protection
Optional Death Benefit is equal to the amount payable under the basic Death
Benefit ($75,000) PLUS 50% of the "Death Benefit Amount" less Purchase Payments
reduced by proportional withdrawals.
Purchase Payments = $50,000
Account Value = $75,000
Basic Death Benefit = $75,000
Death Benefit Amount = $75,000 - $50,000 = $25,000
Benefit Payable under Enhanced Beneficiary Protection
Optional Death Benefit = 40% of Growth
= $75,000 + $12,500 = $87,500
Examples with market decline
Assume that the Owner's Account Value has been decreasing due to declines in
market performance. On the date we receive due proof of death, the Account Value
is $45,000. The basic Death Benefit is calculated as Purchase Payments minus
proportional withdrawals, or Account Value, which ever is greater. Therefore,
the basic Death Benefit is equal to $50,000. The Enhanced Beneficiary Protection
Optional Death Benefit is equal to the amount payable under the basic Death
Benefit ($50,000) PLUS 50% of the "Death Benefit Amount" less Purchase Payments
reduced by proportional withdrawals.
F-3
APPENDIX F
AMERICAN SKANDIA ADVISOR CHOICE(R) 2000 PROSPECTUS
Appendix F -- Description and Calculation of
Previously Offered Optional Death Benefits continued
Purchase Payments = $50,000
Account Value = $40,000
Basic Death Benefit = $50,000
Death Benefit Amount = $50,000 - $50,000 = $0
Amount Payable Under Enhanced Beneficiary Protection Optional Death Benefit
= $50,000 + $0 = $50,000
IN THIS EXAMPLE YOU WOULD RECEIVE NO ADDITIONAL BENEFIT FROM PURCHASING
THE ENHANCED BENEFICIARY PROTECTION OPTIONAL DEATH BENEFIT.
EXAMPLES OF GUARANTEED MINIMUM DEATH BENEFIT CALCULATION The following are
examples of how the Guaranteed Minimum Death Benefit is calculated. Each example
assumes that a $50,000 initial Purchase Payment is made and that no withdrawals
are made prior to the Owner's death. Each example assumes that there is one
Owner who is age 50 on the Issue Date and that all Account Value is maintained
in the variable investment options.
Example of market increase
Assume that the Owner's Account Value has generally been increasing due to
positive market performance. On the date we receive due proof of death, the
Account Value is $90,000. The Highest Anniversary Value at the end of any
previous period is $72,000. The Death Benefit would be the Account Value
($90,000) because it is greater than the Highest Anniversary Value ($72,000) or
the sum of prior Purchase Payments increased by 5.0% annually ($73,872.77).
Example of market decrease
Assume that the Owner's Account Value generally increased until the fifth
anniversary but generally has been decreasing since the fifth contract
anniversary. On the date we receive due proof of death, the Account Value is
$48,000. The Highest Anniversary Value at the end of any previous period is
$54,000. The Death Benefit would be the sum of prior Purchase Payments increased
by 5.0% annually ($73,872.77) because it is greater than the Highest Anniversary
Value ($54,000) or the Account Value ($48,000).
Example of market increase followed by decrease
Assume that the Owner's Account Value increased significantly during the first
six years following the Issue Date. On the sixth anniversary date the Account
Value is $90,000. During the seventh Annuity Year, the Account Value increases
to as high as $100,000 but then subsequently falls to $80,000 on the date we
receive due proof of death. The Death Benefit would be the Highest Anniversary
Value at the end of any previous period ($90,000), which occurred on the sixth
anniversary, although the Account Value was higher during the subsequent period.
The Account Value on the date we receive due proof of death ($80,000) is lower,
as is the sum of all prior Purchase Payments increased by 5.0% annually
($73,872.77).
F-4
APPENDIX G
AMERICAN SKANDIA ADVISORS CHOICE(R) 2000 PROSPECTUS
Appendix G -- Additional Information on Asset Allocation Programs
PROGRAM RULES
- - You can elect an asset allocator program where the Sub-accounts for each
asset class in each model portfolio are designated based on an evaluation
of available Sub-accounts. If you elect the Lifetime Five Benefit ("LT5")
or the Highest Daily Value Death Benefit ("HDV"), you must enroll in one
of the eligible model portfolios. Asset allocation is a sophisticated
method of diversification that allocates assets among asset classes in
order to manage investment risk and potentially enhance returns over the
long term. However, asset allocation does not guarantee a profit or
protect against a loss.
HOW THE ASSET ALLOCATION PROGRAM WORKS
- - Amounts will automatically be allocated in accordance with the percentages
and to Sub-accounts indicated for the model portfolio that you choose. If
you allocate your Account Value or transfer your Account Value among any
Sub-accounts that are outside of your model portfolio, we will allocate
these amounts according to the allocation percentages of the applicable
model portfolio upon the next rebalancing. You may only choose one model
portfolio at a time. When you enroll in the asset allocation program and
upon each rebalance thereafter, 100% of your Account Value allocated to
the variable Sub-accounts will be allocated to the asset allocation
program. Any Account Value not invested in the Sub-accounts will not be
part of the program.
- - ADDITIONAL PURCHASE PAYMENTS: Unless otherwise requested, any additional
Purchase Payments applied to the variable Sub-accounts in the Annuity will
be allocated to the Sub-accounts according to the allocation percentages
for the model portfolio you choose. Allocation of additional Purchase
Payments outside of your model portfolio but into a Sub-account, will be
reallocated according to the allocation percentages of the applicable
model portfolio upon the next rebalancing.
- - REBALANCING YOUR MODEL PORTFOLIO: Changes in the value of the Sub-account
will cause your Account Value allocated to the Sub-accounts to vary from
the percentage allocations of the model portfolio you select. By selecting
the asset allocation program, you have directed us to periodically (e.g.,
quarterly) rebalance your Account Value allocated to the Sub-accounts in
accordance with the percentage allocations assigned to each Sub-account
within your model portfolio at the time you elected the program or as
later modified with your consent. Some asset allocation programs will only
require that a rebalancing occur when the percent of your Account Value
allocated to the Sub-accounts are outside of the acceptable range
permitted under such asset allocation program. Note -- Any Account Value
not invested in the Sub-accounts will not be affected by any rebalance.
- - SUB-ACCOUNT CHANGES WITHIN THE MODEL PORTFOLIOS: From time to time you may
be notified of a suggested change in a Sub-account or percentage allocated
to a Sub-account within your model portfolio. If you consent (in the
manner that is then permitted or required) to the suggested change, then
it will be implemented upon the next rebalance. If you do not consent then
rebalancing will continue in accordance with your unchanged model
portfolio, unless the Sub-account is no longer available under your
Annuity, in which case your lack of consent will be deemed a request to
terminate the asset allocation program and the provisions under
"Termination or Modification of the Asset Allocation Program" will apply.
- - OWNER CHANGES IN CHOICE OF MODEL PORTFOLIO: You may change from the model
portfolio that you have elected to any other currently available model
portfolio at any time. The change will be implemented on the date we
receive all required information in the manner that is then permitted or
required.
TERMINATION OR MODIFICATION OF THE ASSET ALLOCATION PROGRAM:
- - You may request to terminate your asset allocation program at any time.
Any termination will be effective on the date that American Skandia
receives your termination request in good order. If you are enrolled in
HDV or LT5, termination of your asset allocation program must coincide
with enrollment in a then currently available and approved asset
allocation program or other approved option. However, if you are enrolled
in LT5 you may terminate the LT5 benefit in order to then terminate your
asset allocation program. American Skandia reserves the right to terminate
or modify the asset allocation program at any time with respect to any
programs.
RESTRICTIONS ON ELECTING THE ASSET ALLOCATION:
- - You cannot participate in auto-rebalancing or a DCA program while enrolled
in an asset allocation program. Upon election of an asset allocation
program, American Skandia will automatically terminate your enrollment in
any auto-rebalancing or DCA program. Finally, Systematic Withdrawals can
only be made as flat dollar amounts.
G-1
PLEASE SEND ME A STATEMENT OF ADDITIONAL INFORMATION THAT CONTAINS FURTHER
DETAILS ABOUT THE AMERICAN SKANDIA ANNUITY DESCRIBED IN PROSPECTUS ASAPIII-PROS
(05/2005).
______________________________________
(print your name)
______________________________________
(address)
______________________________________
(city/state/zip code)
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Variable Annuity Issued by: Variable Annuity Distributed by:
AMERICAN SKANDIA LIFE AMERICAN SKANDIA
ASSURANCE CORPORATION MARKETING, INCORPORATED
A Prudential Financial Company A Prudential Financial Company
One Corporate Drive One Corporate Drive
Shelton, Connecticut 06484 Shelton, Connecticut 06484
Telephone: 1-800-752-6342 Telephone: 203-926-1888
http://www.americanskandia.prudential.com http://www.americanskandia.prudential.com
MAILING ADDRESSES:
AMERICAN SKANDIA -- VARIABLE ANNUITIES
P.O. Box 7960
Philadelphia, PA 19176
EXPRESS MAIL:
AMERICAN SKANDIA -- VARIABLE ANNUITIES
2101 Welsh Road
Dresher, PA 19025
choice2 4/7/2005
PART II
INFORMATION NOT REQUIRED IN PROSPECTUS
Item 14. Other Expenses of Issuance and Distribution: Not Applicable.
Item 15. Indemnification of Directors and Officers: Under Section 33-320a of the
Connecticut General Statutes, the Registrant must indemnify a director or
officer against judgments, fines, penalties, amounts paid in settlement and
reasonable expenses including attorneys' fees, for actions brought or threatened
to be brought against him in his capacity as a director or officer when certain
disinterested parties determine that he acted in good faith and in a manner he
reasonably believed to be in the best interests of the Registrant. In any
criminal action or proceeding, it also must be determined that the director or
officer had no reason to believe his conduct was unlawful. The director or
officer must also be indemnified when he is successful on the merits in the
defense of a proceeding or in circumstances where a court determines that he is
fairly and reasonable entitled to be indemnified, and the court approves the
amount. In shareholder derivative suits, the director or officer must be finally
adjudged not to have breached this duty to the Registrant or a court must
determine that he is fairly and reasonably entitled to be indemnified and must
approve the amount. In a claim based upon the director's or officer's purchase
or sale of the Registrants' securities, the director or officer may obtain
indemnification only if a court determines that, in view of all the
circumstances, he is fairly and reasonably entitled to be indemnified and then
for such amount as the court shall determine. The By-Laws of American Skandia
Life Assurance Corporation ("ASLAC") also provide directors and officers with
rights of indemnification, consistent with Connecticut Law.
The foregoing statements are subject to the provisions of Section 33-320a.
Directors and officers of ASLAC and American Skandia Marketing, Inc. ("ASM") can
also be indemnified pursuant to indemnity agreements between each director and
officer and American Skandia, Inc., a corporation organized under the laws of
the state of Delaware. The provisions of the indemnity agreement are governed by
Section 45 of the General Corporation Law of the State of Delaware.
The directors and officers of ASLAC and ASM are covered under a directors and
officers liability insurance policy. Such policy will reimburse ASLAC or ASM, as
applicable, for any payments that it shall make to directors and officers
pursuant to law and, subject to certain exclusions contained in the policy, will
pay any other costs, charges and expenses, settlements and judgments arising
from any proceeding involving any director or officer of ASLAC or ASM, as
applicable, in his or her past or present capacity as such.
Item 16. Exhibits:
Exhibits Page
-------- ----
1 Underwriting agreement incorporated by reference to Post-Effective Amendment
No. 1 to Registration Statement No. 333-25733, filed via EDGAR March 2, 1998.
2 Plan of acquisition, reorganization, arrangement, liquidation or succession Not applicable
3 Articles of incorporation and by-laws incorporated by reference to Post-Effective
Amendment No. 6 to Registration Statement No. 33-87010, filed via EDGAR March 2, 1998.
4 Instruments defining the rights of security holders, including indentures incorporated by
reference to Pre-Effective Amendment No. 1 to Registration Statement No. 333-08853, filed
via EDGAR 12/20/96
5 Opinion re legality (included as Exhibit 23b)
6 - 9 Not applicable
10 Material contracts (Investment Management Agreement):
1
(a) Agreement with Alliance Capital Management L.P. incorporated
by reference to Post-Effective No. 3 to Registration Statement
No. 33-53507, filed via EDGAR April 26, 2002.
(b) Agreement with Blackrock Financial Management, Inc.
incorporated by reference to Post-Effective No. 3 to
Registration Statement No. 33-53507, filed via EDGAR April 26,
2002.
11 - 22 Not applicable
23a
(i) Consent of PricewaterhouseCoopers LLP FILED HEREWITH
(ii) Consent of Ernst & Young LLP FILED HEREWITH
23b Opinion and Consent of Counsel filed via EGAR with Post-Effective Amendment 5 to this
Registration Statement, filed April 20, 2004.
24
(a) Powers of Attorney for James J. Avery, Director, Helen M. Galt, Director, Ronald P. Joelson, Director,
Andrew J. Mako, Director and David R. Odenath, Chief Executive Officer, President and Director filed with
Post-Effective Amendment No. 5 to Registration Statement No. 333-96577, filed April 20, 2004.
(b) Powers of Attorney for Directors C. Edward Chaplin and Bernard J. Jacob filed with Initial Registration
Statement No. 333-117052.
(c) Power of Attorney for Michael Bohm, Executive Vice President and Chief Financial Officer filed with
Post-Effective Amendment No. 6 to Registration Statement No. 333-96577, filed November 12, 2004.
25 - 28 Not applicable
- ------------------------------------------------------------------------------------------------------------------------------------
An index to the financial statement schedules is omitted because it is not
required or is not applicable.
Item 17. Undertakings: The undersigned Registrant hereby undertakes:
(1) To file, during any period in which offers or sales are being made,
post-effective amendments to this registration statement:
(i) To include any prospectus required by section 10 (a)(3) of the
Securities Act of 1933;
(ii) To reflect in the prospectus any facts or events arising after the
effective date of the registration statement (or the most recent post-effective
amendment thereof) which, individually or in the aggregate, represent a
fundamental change in the information set forth in the registration statement;
and
(iii) 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 such post-effective amendment shall be deemed to be a new
registration statement relating the securities offered therein, and the offering
of such securities at that time shall be deemed to be the initial bona fide
offering thereof.
(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.
2
(4) The undersigned Registrant hereby undertakes 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.
(5) Insofar as indemnification for liabilities arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
Registrant pursuant to the foregoing provisions, or otherwise, the Registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the Registrant of expenses incurred
or paid by a director, officer or controlling person of the Registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
- --------------------------------------------------------------------------------
LEGAL EXPERTS: The Counsel of American Skandia Life Assurance Corporation has
passed on the legal matters with respect to Federal laws and regulations
applicable to the issue and sale of the Annuities and with respect to
Connecticut law.
3
choice2 4/7/2005
Exhibits
Exhibit 23a
(i) PricewaterhouseCoopers LLP FILED HEREWITH
(ii) Ernst & Young LLP FILED HEREWITH
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 registration
statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the City of Shelton, State of Connecticut, on the 15th day of
April, 2005.
AMERICAN SKANDIA LIFE ASSURANCE CORPORATION
Depositor
By: /s/Robin Wagner
Robin Wagner, Vice President, Corporate Counsel
As required by the Securities Act of 1933, this Registration Statement has been
signed by the following persons in the capacities and on the date indicated.
Signature Title Date
---------- ----- ------
(Principal Executive Officer)
David R. Odenath* Chief Executive Officer and President April 15, 2005
- -----------------
David R. Odenath
(Principal Financial Officer and Principal Accounting Officer)
Michael Bohm* Executive Vice President and April 15, 2005
------------- Chief Financial Officer
Michael Bohm
(Board of Directors)
James Avery* Helen Galt*
---------- ----------
James Avery Helen Galt
Ronald Joelson* David R. Odenath* Andrew J. Mako*
--------------- ----------------- ---------------
Ronald Joelson David R. Odenath Andrew J. Mako
By: /s/Robin Wagner
---------------
Robin Wagner
*Executed by Robin Wagner on behalf of those indicated pursuant to Power of Attorney