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Sunamerica Annuity & Life Assurance Co – ‘424B3’ on 6/28/99

On: Monday, 6/28/99 · Accession #: 950148-99-1508 · File #: 333-18333

  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 6/28/99  Sunamerica Annuity & Life Ass… Co 424B3                  1:168K                                   Bowne of Century City/FA

Prospectus — Rule 424(b)(3)
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 424B3       Prospectus                                            64±   285K

Document Table of Contents

Page	(sequential)	\|	(alphabetic)	Top
			Alternative Formats (Word, et al.) Accumulation Units Administration Allocation of Purchase Payments Anchor National Anchor Series Trust Annual Separate Account Expenses Annuity Contracts in General Annuity Date Asset Allocation Rebalancing Program Contract Maintenance Fee Custodian Deferment of Payments Deferred Payment Enhancement Distribution of the Contract Diversification Dollar Cost Averaging Fixed Account Options Fixed or Variable Income Payments Free Look General Account, The Income Options Income Payments Income Protector Feature, The Income Taxes Independent Accountants Initial Payment Enhancement Insurance Charges Investment Charges Legal Proceedings Market Value Adjustment ("MVA") Minimum Contract Value Minimum Distributions Nursing Home Waiver Ownership Owner Transaction Expenses Portfolio Expenses Premium Tax Principal Advantage Program Principal Rewards Program Reduction or Elimination of Charges and Expenses, and Additional Amounts Credited Registration Statement Separate Account, The Substitution Sunamerica Series Trust Systematic Withdrawal Program Tax Treatment of Distributions - Non-Qualified Contracts Tax Treatment of Distributions - Qualified Contracts The General Account The Income Protector Feature The Separate Account Transfer Fee Transfers During the Accumulation Phase Transfers During the Income Phase Variable Portfolios Voting Rights Withdrawal Charges Year 2000
1	1st Page - Filing Submission
2	Anchor Series Trust
"	Sunamerica Series Trust
4	Free Look
"	Principal Rewards Program
5	Asset Allocation Rebalancing Program
"	Systematic Withdrawal Program
"	Principal Advantage Program
"	Dollar Cost Averaging
9	Owner Transaction Expenses
"	Annual Separate Account Expenses
"	Portfolio Expenses
13	Allocation of Purchase Payments
"	Initial Payment Enhancement
"	Deferred Payment Enhancement
14	Accumulation Units
"	Variable Portfolios
15	Fixed Account Options
16	Market Value Adjustment ("MVA")
"	Transfers During the Accumulation Phase
18	Voting Rights
"	Substitution
19	Nursing Home Waiver
"	Minimum Contract Value
20	Insurance Charges
"	Withdrawal Charges
21	Investment Charges
"	Contract Maintenance Fee
"	Transfer Fee
"	Premium Tax
"	Income Taxes
"	Reduction or Elimination of Charges and Expenses, and Additional Amounts Credited
22	Annuity Date
"	Income Options
"	Fixed or Variable Income Payments
"	Income Payments
23	Transfers During the Income Phase
"	Deferment of Payments
"	The Income Protector Feature
24	Annuity Contracts in General
"	Tax Treatment of Distributions - Non-Qualified Contracts
25	Tax Treatment of Distributions - Qualified Contracts
"	Minimum Distributions
"	Diversification
26	Anchor National
"	The Separate Account
"	The General Account
"	Distribution of the Contract
"	Administration
27	Year 2000
"	Legal Proceedings
"	Ownership
"	Custodian
"	Independent Accountants
28	Registration Statement

424B3 1st “Page” of 34 TOC ↑Top Previous Next ↓Bottom Just 1st
 

                                       As filed pursuant to Rule 424(b)(3)
                                    under the Securities Act of 1933
                              Registration No. 333-18333

[POLARIS II LOGO]   

THIS PROFILE IS A SUMMARY OF SOME OF THE MORE IMPORTANT POINTS THAT YOU SHOULD  
KNOW AND CONSIDER BEFORE PURCHASING THE POLARISII VARIABLE ANNUITY. THE ANNUITY 
IS MORE FULLY DESCRIBED IN THE PROSPECTUS. PLEASE READ THE PROSPECTUS CAREFULLY.

June 28, 1999 

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1. THE POLARISII VARIABLE ANNUITY 
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The PolarisII Variable Annuity is a contract between you and Anchor National    
Life Insurance Company. It is designed to help you invest on a tax-deferred     
basis and meet long-term financial goals, such as retirement funding. Tax       
deferral means all your money, including the amount you would otherwise pay in  
current income taxes, remains in your contract to generate more earnings. Your  
money could grow faster than it would in a comparable taxable investment.       

PolarisII offers a diverse selection of money managers and investment options.  
You may divide your money among any or all 27 variable portfolios and 5 fixed   
account options. Additionally, if you do not elect to participate in the        
Principal Rewards Program, you may also allocate money to the 2 dollar cost     
averaging ("DCA") fixed account options. To the extent you invest in the        
variable portfolios, your investment is not guaranteed. The value of your       
PolarisII contract can fluctuate up and down, based on the performance of the   
underlying investments you select and you may experience a loss.                

The variable portfolios offer professionally managed investment choices with    
goals ranging from capital preservation to aggressive growth. Your choices for  
the various investment options are found on the next page.                      

The contract also offers 5 fixed account options and, if you do not elect to    
participate in the Principal Rewards Program, 2 DCA fixed account options for   
different time periods. Each may have a different interest rate. Interest rates 
are guaranteed by Anchor National.                                              

Like most annuities, the contract has an accumulation phase and an income phase.
During the accumulation phase, you invest money in your contract. Your earnings 
are based on the investment performance of the variable portfolios to which your
money is allocated and/or the interest rate(s) earned on the fixed account      
option(s) in which you invest. You may withdraw money from your contract during 
the accumulation phase. However, as with other tax-deferred investments, you    
will pay taxes on earnings and untaxed contributions when you withdraw them. A  
federal tax penalty may apply if you make withdrawals before age 59 1/2.        

During the income phase, you may receive income payments from your annuity. Your
income payments may be fixed in dollar amount, vary with investment performance 
or a combination of both, depending on where your money is allocated. Among     
other factors, the amount of money you are able to accumulate in your contract  
during the accumulation phase will affect the amount of your income payments    
during the income phase.                                                        
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2. INCOME OPTIONS 
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You can select from one of five income options:                                 

(1) payments for your lifetime;                                           

(2) payments for your lifetime and your survivor's lifetime;              

   (3) payments for your lifetime and your survivor's lifetime, but for not less
than 10 or 20 years;                                              

(4) payments for your lifetime, but for not less than 10 or 20 years; and 

(5) payments for a specified period of 5 to 30 years.                     

You will also need to decide when your income payments begin and if you want    
your income payments to fluctuate with investment performance or remain         
constant. Once you begin receiving income payments, you cannot change your      
income option.                                                                  

If your contract is part of a non-qualified retirement plan (one that is        
established with after-tax dollars), payments during the income phase are       
considered partly a return of your original investment. The "original           
investment" part of each payment is not taxable as income. For contracts which  
are part of a qualified retirement plan using before-tax dollars, the entire    
income payment is taxable as income.                                            

In addition to the above income options, you may elect to take income payments  
under the income protector feature, subject to the provisions thereof.          
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3. PURCHASING A POLARISII VARIABLE
ANNUITY CONTRACT
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You can buy a contract through your financial representative, who can also help 
you complete the proper forms. For non-qualified contracts, the minimum initial 
purchase payment is $5,000 and subsequent amounts of $500 or more may be added  
to your contract at any time during the accumulation phase. For qualified       
contracts, the minimum initial purchase payment is $2,000 and subsequent amounts
of $250 or more may be added to your contract at any time during the            
accumulation phase.                                                             

424B3 2nd “Page” of 34 TOC 1st Previous Next ↓Bottom Just 2nd

You may elect to participate in the principal rewards program when you apply for
your contract. Under this program, we add an amount to your contract (an        
"initial payment enhancement") each time you invest a purchase payment.         
Additionally, we may also pay an amount to your contract at a future date (a    
"deferred payment enhancement"). Payment enhancement amounts are calculated as a
percentage of each purchase payment. The Principal Rewards Program may not be   
available to you. Please check with your financial representative regarding     
availability of this program.                                                   
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4. INVESTMENT OPTIONS 
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You may allocate money to the following variable portfolios of the Anchor Series
Trust and/or the SunAmerica Series Trust:                                       

ANCHOR SERIES TRUST                                                             
MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP                               
- Capital Appreciation Portfolio                                    
- Growth Portfolio                                                  
- Natural Resources Portfolio                                       
- Government and Quality Bond Portfolio                             

SUNAMERICA SERIES TRUST                                                         
MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.                                 
- Global Equities Portfolio                                         
- Alliance Growth Portfolio                                         
- Growth-Income Portfolio                                           
MANAGED BY DAVIS SELECTED ADVISERS, L.P.                                    
- Venture Value Portfolio                                           
- Real Estate Portfolio                                             
MANAGED BY FEDERATED INVESTORS                                              
- Federated Value Portfolio                                         
- Utility Portfolio                                                 
- Corporate Bond Portfolio                                          
MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/                                  
GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL                                
- Asset Allocation Portfolio                                        
- Global Bond Portfolio                                             
MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY                         
- MFS Mid-Cap Growth                                                
- MFS Growth and Income Portfolio                                   
- MFS Total Return Portfolio                                        
MANAGED BY MORGAN STANLEY ASSET MANAGEMENT                                  
- International Diversified Equities Portfolio                      
- Worldwide High Income Portfolio                                   
MANAGED BY PUTNAM INVESTMENT MANAGEMENT, INC.                               
- Putnam Growth Portfolio                                           
- International Growth and Income Portfolio                         
- Emerging Markets Portfolio                                        
MANAGED BY SUNAMERICA ASSET MANAGEMENT CORP.                                
- Aggressive Growth Portfolio                                       
- "Dogs" of Wall Street Portfolio                                   
- SunAmerica Balanced Portfolio                                     
- High-Yield Bond Portfolio                                         
- Cash Management Portfolio                                         

You may also allocate money to the 1-year fixed account option or the 3, 5, 7   
and 10-year market value adjustment ("MVA") fixed account options and, under    
certain circumstances, the 6-month and 1-year DCA fixed account options.        

The interest rates applicable for these fixed account options may differ from   
time to time, however, we will never credit less than a 3% annual effective     
rate. Once established, the rate will not change during the selected period.    
Your contract value will be adjusted up or down for withdrawals or transfers    
from the 3, 5, 7 and 10-year fixed account options prior to the end of the      
guarantee period.                                                               
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5. EXPENSES 
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Each year, we deduct a $35 contract maintenance fee ($30 in North Dakota) from  
your contract. We also deduct insurance charges which equal 1.52% annually of   
the average daily value of your contract allocated to the variable portfolios.  

As with other professionally managed investments, there are investment charges  
imposed on contracts with money allocated to the variable portfolios. We        
estimate these fees to range from .58 to 1.90.                                  

If you take money out of your contract, you may be assessed a withdrawal charge 
which is a percentage of purchase payments. The percentage declines over the    
time the money is in the contract. The withdrawal charge schedule also varies   
dependent upon whether you elect to participate in the Principal Rewards Program
when you purchase your contract. The two withdrawal charge schedules are as     
follows:                                                                        

WITHDRAWAL CHARGE WITHOUT THE PRINCIPAL REWARDS PROGRAM (SCHEDULE A)            

                                                        [Enlarge/Download Table]

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      Year           1        2        3        4        5        6        7        8    
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 WITHDRAWAL                                                                              
 CHARGE              7%       6%       5%       4%       3%       2%       1%       0%   
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WITHDRAWAL CHARGE WITH THE PRINCIPAL REWARDS PROGRAM (SCHEDULE B)               

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      Year           1        2        3        4        5        6        7        8        9        10   
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 WITHDRAWAL                                                                                                
 CHARGE              9%       9%       8%       7%       6%       5%       4%       3%       2%       0%   
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Each year, you are allowed to make 15 transfers without charge. After your first
15 free transfers, a $25 transfer fee ($10 in Pennsylvania and Texas) applies to
each subsequent transfer.                                                       

In a limited number of states, you may also be assessed a state premium tax of  
up to 3.5% depending upon the state.                                            

The following chart is designed to help you understand the charges in your      
contract. The column "Total Annual Charges" shows the total of the 1.52%        
insurance charges, the $35 contract maintenance fee and the investment charges  
for each variable portfolio. We converted the contract maintenance fee to a     
percentage using an assumed contract size of $40,000. The actual impact of this 
charge on your contract may differ from this percentage.                        

424B3 3rd “Page” of 34 TOC 1st Previous Next ↓Bottom Just 3rd

The next two columns show two examples of the charges you would pay under the   
contract. The examples assume that you invested $1,000 in a contract which earns
5% annually and that you withdraw your money: (1) at the end of year 1, and (2) 
at the end of year 10. The premium tax is assumed to be 0% in both examples.    

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                                                                                        EXAMPLES:                      
                                                                                     TOTAL EXPENSES                    
                                                                                        AT END OF                      
                                                                                         1 YEAR                        
                                  TOTAL ANNUAL    TOTAL ANNUAL                        WITHOUT/WITH       TOTAL EXPENSES
                                   INSURANCE       INVESTMENT       TOTAL ANNUAL        PRINCIPAL          AT END OF   
 ANCHOR SERIES TRUST PORTFOLIO      CHARGES         CHARGES           CHARGES        REWARDS PROGRAM       10 YEARS*   
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Capital Appreciation                 1.61%            .68%             2.29%            $ 93/$113             $262     
Growth                               1.61%            .75%             2.36%            $ 94/$114             $269     
Natural Resources                    1.61%            .88%             2.49%            $ 95/$115             $282     
Government and Quality Bond          1.61%            .67%             2.28%            $ 93/$113             $261     
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SUNAMERICA SERIES TRUST PORTFOLIO                                                                                      
Emerging Markets**                   1.61%           1.90%             3.51%            $105/$125             $378     
International Diversified                                                                                              
  Equities                           1.61%           1.26%             2.87%            $ 99/$119             $319     
Global Equities                      1.61%            .88%             2.49%            $ 95/$115             $282     
International Growth and                                                                                               
  Income**                           1.61%           1.46%             3.07%            $101/$121             $338     
Aggressive Growth**                  1.61%            .83%             2.44%            $ 95/$115             $277     
MFS Mid-Cap Growth                   1.61%           1.00%             2.61%            $ 96/$116             $294     
Real Estate**                        1.61%            .95%             2.56%            $ 96/$116             $289     
Putnam Growth                        1.61%            .86%             2.47%            $ 95/$115             $280     
MFS Growth and Income(1)             1.61%            .73%             2.34%            $ 94/$114             $267     
Alliance Growth                      1.61%            .64%             2.25%            $ 93/$113             $258     
"Dogs" of Wall Street**              1.61%            .85%             2.46%            $ 95/$115             $279     
Venture Value                        1.61%            .75%             2.36%            $ 94/$114             $269     
Federated Value**                    1.61%            .83%             2.44%            $ 95/$115             $277     
Growth-Income                        1.61%            .60%             2.21%            $ 92/$112             $254     
Utility**                            1.61%           1.01%             2.62%            $ 96/$116             $295     
Asset Allocation                     1.61%            .64%             2.25%            $ 93/$113             $258     
MFS Total Return(2)                  1.61%            .77%             2.38%            $ 94/$114             $271     
SunAmerica Balanced**                1.61%            .78%             2.39%            $ 94/$114             $272     
Worldwide High Income                1.61%           1.08%             2.69%            $ 97/$117             $302     
High-Yield Bond                      1.61%            .69%             2.30%            $ 93/$113             $263     
Corporate Bond                       1.61%            .77%             2.38%            $ 94/$114             $271     
Global Bond                          1.61%            .85%             2.46%            $ 95/$115             $279     
Cash Management                      1.61%            .58%             2.19%            $ 92/$112             $252     
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*  Total expenses at the end of 10 years are the same for all contracts,        
regardless of whether you participate in the Principal Rewards Program.   
** For these Portfolios, the adviser, SunAmerica Asset Management Corp., has    
   voluntarily agreed to waive fees or reimburse expenses, if necessary, to keep
  operating expenses at or below an established maximum amount. All waivers or
  reimbursements may be terminated at any time. For more detailed information,
see Fee Tables and Examples in the prospectus.                            
(1)   Formerly named Growth/Phoenix and managed by Phoenix Investment Counsel,  
Inc.                                                                            
(2)   Formerly named Balanced/Phoenix and managed by Phoenix Investment Counsel,
Inc.                                                                            

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6. TAXES
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Unlike taxable investments where earnings are taxed in the year they are earned,
taxes on amounts earned in a non-qualified contract are deferred until they are 
withdrawn. In a qualified contract, all amounts are taxable when they are       
withdrawn.                                                                      

When you begin taking distributions or withdrawals from your contract, earnings 
are considered to be taken out first and will be taxed at your ordinary income  
rate. You may be subject to a 10% federal tax penalty for distributions or      
withdrawals before age 59 1/2.                                                  

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7. ACCESS TO YOUR MONEY 
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During the first year, you may withdraw free of a withdrawal charge an amount   
that is equal to the penalty-free earnings in your contract as of the date you  
make the withdrawal or, if you participate in the systematic withdrawal program,
you may withdraw 10% of your total invested amount less any withdrawals made    
during the year. The penalty-free earnings amount is calculated by taking the   
value of your contract on the day you make the withdrawal and subtracting your  
total invested amount. After the first year, your maximum free withdrawal amount
is the greater of: (1) the penalty-free earnings or (2) 10% of your total       
invested amount that has been invested for at least one year, less any          
withdrawals made during the year. Withdrawals in excess of these limits will be 
assessed a withdrawal charge.                                                   

If you withdraw your entire contract value, you will not receive the benefit of 
any free withdrawal amount. After a purchase payment has been in the contract   
for seven years, or nine years if you participate in the principal rewards      
program, there are no withdrawal charges on that purchase payment.              

424B3 4th “Page” of 34 TOC 1st Previous Next ↓Bottom Just 4th

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8. PERFORMANCE
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When you invest in the PolarisII Variable Annuity, your money is actually       
invested in the underlying portfolios of the Anchor Series Trust and/or the     
SunAmerica Series Trust. The value of your annuity will fluctuate depending upon
the investment performance of the portfolio(s) you choose.                      

The following chart shows total returns for each portfolio for the time periods 
shown. These numbers reflect the insurance charges, the contract maintenance fee
and the investment charges. Withdrawal charges are not reflected in the chart.  
Past performance is no guarantee of future results.                             

                                                                [Download Table]

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              ANCHOR SERIES                     CALENDAR      
             TRUST PORTFOLIO                   YEAR 1998*     
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  Capital Appreciation                            20.27%      
  Growth                                          26.93%      
  Natural Resources                              (18.80)%     
  Government and Quality Bond                      7.42%      
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SUNAMERICA SERIES                                             
TRUST PORTFOLIO                                               
  Emerging Markets                               (25.62)%     
  International Diversified Equities              16.60%      
  Global Equities                                 20.86%      
  International Growth and Income                  9.03%      
  Aggressive Growth                               15.55%      
  MFS Mid-Cap Growth                                 --**     
  Real Estate                                    (16.76)%     
  Putnam Growth                                   32.60%      
  MFS Growth and Income1                          27.22%      
  Alliance Growth                                 49.83%      
  "Dogs" of Wall Street                           (1.83)%***  
  Venture Value                                   11.96%      
  Federated Value                                 16.05%      
  Growth-Income                                   28.74%      
  Utility                                         12.21%      
  Asset Allocation                                 1.67%      
  MFS Total Return2                               17.64%      
  SunAmerica Balanced                             22.67%      
  Worldwide High Income                          (18.45)%     
  High-Yield Bond                                 (4.51)%     
  Corporate Bond                                   4.31%      
  Global Bond                                      9.04%      
  Cash Management                                  3.51%      
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*   The total returns listed here do not take into account the effect of any    
payment enhancement made under the Principal Rewards Program.           
**  This portfolio was not available for sale during calendar year 1998.        
*** Inception to 12/31/98.                                                      
1   Formerly named Growth/Phoenix and managed by Phoenix Investment Counsel,    
Inc.                                                                    
2   Formerly named Balanced/Phoenix and managed by Phoenix Investment Counsel,  
Inc.                                                                    

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9. DEATH BENEFIT
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If you should die during the accumulation phase, your beneficiary will receive a
death benefit. You must select from the two death benefit options described     
below at the time you purchase your contract. Once selected, your death benefit 
may not be changed. You should discuss with your financial representative the   
options available to you and which option is best for you.                      

OPTION 1 - PURCHASE PAYMENT ACCUMULATION OPTION:                      

The death benefit is the greater of:                                            

(1) the value of your contract at the time we receive satisfactory proof of     
death; or                                                               

(2) total purchase payments less withdrawals (and any fees or charges applicable
  to such withdrawals), compounded at a 4% annual growth rate until the date
   of death (3% growth rate if 70 or older at the time of contract issue) plus
    any purchase payments less withdrawals recorded after the date of death (and
any fees or charges applicable to such withdrawals); or                 

(3) the value of your contract on the seventh contract anniversary, plus any    
purchase payments since the seventh anniversary and less any withdrawals
   (and any fees or charges applicable to such withdrawals), all compounded at
 a 4% annual growth rate until the date of death (3% if 70 or older at the
    time of contract issue) plus any purchase payments less withdrawals recorded
after the date of death (and any fees or charges applicable to such     
withdrawals).                                                           

OPTION 2 - MAXIMUM ANNIVERSARY OPTION:                                

The death benefit is the greater of:                                            

(1) the value of your contract at the time we receive satisfactory proof of     
death; or                                                               

(2) total purchase payments less any withdrawals (and any fees or charges       
applicable to such withdrawals); or                                     

(3) the maximum anniversary value on any contract anniversary prior to your 81st
birthday. The anniversary value equals the value of your contract on a  
contract anniversary plus any purchase payments and less any withdrawals
(and any fees or charges applicable to such withdrawals) since that     
anniversary.                                                            

If you participate in the principal rewards program and die prior to a deferred 
payment enhancement date, we will not allocate the corresponding deferred       
payment enhancement(s) to your contract.                                        

If you are age 90 or older at the time of death and selected the option 2 death 
benefit, the death benefit will be equal to the value of your contract at the   
time we receive satisfactory proof of death.                                    
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10. OTHER INFORMATION 
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FREE LOOK: You may cancel your contract within ten days (or longer if required  
by your state) by mailing it to our Annuity Service Center. Your contract will  
be treated as void on the date we receive it and we will pay you an amount equal
to the value of your contract on the day we receive your request (unless        
otherwise required by state law) less the free look payment enhancement         
deduction. The amount returned to you may be more or less than the money you    
initially invested.                                                             

PRINCIPAL REWARDS PROGRAM: If elected by you, we add an amount to your contract 
(an "initial payment enhancement") each time you submit a purchase payment.     
Additionally, we may also add an amount to your contract at a future date (a    
"deferred payment enhancement"). Payment enhancement amounts are calculated as a
percentage of your purchase                                                     

424B3 5th “Page” of 34 TOC 1st Previous Next ↓Bottom Just 5th

payment amount and are treated as earnings under your contract. The program may 
not be available to you. Please check with your financial representative        
regarding the availability of this program.                                     

ASSET ALLOCATION REBALANCING PROGRAM: If elected by you, this program seeks to  
keep your investment in line with your goals. We will maintain your specified   
allocation mix in the variable portfolios and the 1-year fixed account option by
readjusting your money on a calendar quarter, semiannual or annual basis.       

SYSTEMATIC WITHDRAWAL PROGRAM: If elected by you, this program allows you to    
receive either monthly, quarterly, semiannual or annual checks during the       
accumulation phase. Systematic withdrawals may also be electronically           
transferred to your bank account. Of course, withdrawals may be taxable and a   
10% federal tax penalty may apply if you are under age 59 1/2.                  

PRINCIPAL ADVANTAGE PROGRAM: If elected by you, this program allows you to      
obtain growth potential without any market risk to your principal. We will      
guarantee that the portion of your money allocated to the 1, 3, 5, 7 or 10-year 
fixed account option will grow to equal your principal investment when it is    
allocated in accordance with the program.                                       

DOLLAR COST AVERAGING: If elected by you, this program allows you to invest     
gradually in the variable portfolios from any of the variable portfolios or the 
1-year fixed account option. You may also invest in the variable portfolios from
the 6-month DCA fixed account option or the 1-year DCA fixed account option if  
you do not participate in the principal rewards program.                        

AUTOMATIC PAYMENT PLAN: You can add to your contract directly from your bank    
account with as little as $20 per month.                                        

CONFIRMATIONS AND QUARTERLY STATEMENTS: During the accumulation phase, you will 
receive confirmation of transactions within your contract. Transactions made    
pursuant to contractual or systematic agreements, such as deduction of the      
annual maintenance fee and dollar cost averaging, may be confirmed quarterly.   
Purchase payments received through the automatic payment plan or a salary       
reduction arrangement, may also be confirmed quarterly. For all other           
transactions, we send confirmations immediately.                                

During the accumulation and income phases, you will receive a statement of your 
transactions over the past quarter and a summary of your account values.        
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11. INQUIRIES 
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If you have questions about your contract or need to make changes, call your    
financial representative or contact us at:                                      

Anchor National Life Insurance Company                                
Annuity Service Center                                                
P.O. Box 54299                                                        
Los Angeles, California 90054-0299                                    
Telephone Number: (800) 445-SUN2                                      

If money accompanies your correspondence, you should direct it to:              

Anchor National Life Insurance Company                                
P.O. Box 100330                                                       
Pasadena, California 91189-0001                                       

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[POLARIS II LOGO] 

PROSPECTUS
JUNE 28, 1999 

                                                        [Enlarge/Download Table]
                                                                                                   
Please read this prospectus carefully  FLEXIBLE PAYMENT DEFERRED ANNUITY CONTRACTS                 
before investing and keep it for       issued by                                                   
future reference. It contains          ANCHOR NATIONAL LIFE INSURANCE COMPANY                      
important information about the        in connection with                                          
Polaris(II) Variable Annuity.          VARIABLE SEPARATE ACCOUNT                                   
                                       The annuity has 34 investment choices -7 fixed account      
To learn more about the annuity        options and 27 Variable Portfolios listed below. The 7 fixed
offered by this prospectus, you can    account options include specified periods of 1, 3, 5, 7 and 
obtain a copy of the Statement of      10 years and DCA accounts for 6-month and 1-year periods.   
Additional Information ("SAI") dated   The 27 Variable Portfolios are part of the Anchor Series    
June 28, 1999. The SAI has been filed  Trust or the SunAmerica Series Trust.                       
with the Securities and Exchange                                                                   
Commission ("SEC") and is              ANCHOR SERIES TRUST:                                        
incorporated by reference into this    MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP               
prospectus. The Table of Contents of   - Capital Appreciation Portfolio                            
the SAI appears on page 23 of this     - Growth Portfolio                                          
prospectus. For a free copy of the     - Natural Resources Portfolio                               
SAI, call us at (800) 445-SUN2 or      - Government and Quality Bond Portfolio                     
write to us at our Annuity Service                                                                 
Center, P.O. Box 54299, Los Angeles,   SUNAMERICA SERIES TRUST:                                    
California 90054-0299.                 MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.                 
                                       - Global Equities Portfolio                                 
In addition, the SEC maintains a       - Alliance Growth Portfolio                                 
website (http://www.sec.gov) that      - Growth-Income Portfolio                                   
contains the SAI, materials            MANAGED BY DAVIS SELECTED ADVISERS, L.P.                    
incorporated by reference and other    - Venture Value Portfolio                                   
information filed electronically with  - Real Estate Portfolio                                     
the SEC by Anchor National.            MANAGED BY FEDERATED INVESTORS                              
                                       - Federated Value Portfolio                                 
ANNUITIES INVOLVE RISKS, INCLUDING     - Utility Portfolio                                         
POSSIBLE LOSS OF PRINCIPAL, AND ARE    - Corporate Bond Portfolio                                  
NOT A DEPOSIT OR OBLIGATION OF, OR     MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/                  
GUARANTEED OR ENDORSED BY, ANY BANK.   GOLDMAN SACHS ASSET MANAGEMENT INTERNATIONAL                
THEY ARE NOT FEDERALLY INSURED BY THE  - Asset Allocation Portfolio                                
FEDERAL DEPOSIT INSURANCE              - Global Bond Portfolio                                     
CORPORATION, THE FEDERAL RESERVE       MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY         
BOARD OR ANY OTHER AGENCY.             - MFS Mid-Cap Growth                                        
                                       - MFS Growth and Income Portfolio                           
                                       - MFS Total Return Portfolio                                
                                       MANAGED BY MORGAN STANLEY ASSET MANAGEMENT                  
                                       - International Diversified Equities Portfolio              
                                       - Worldwide High Income Portfolio                           
                                       MANAGED BY PUTNAM INVESTMENT MANAGEMENT, INC.               
                                       - Putnam Growth Portfolio                                   
                                       - International Growth and Income Portfolio                 
                                       - Emerging Markets Portfolio                                
                                       MANAGED BY SUNAMERICA ASSET MANAGEMENT CORP.                
                                       - Aggressive Growth Portfolio                               
                                       - "Dogs" of Wall Street Portfolio                           
                                       - SunAmerica Balanced Portfolio                             
                                       - High-Yield Bond Portfolio                                 
                                       - Cash Management Portfolio                                 

THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND
EXCHANGE COMMISSION, NOR HAS THE COMMISSION PASSED UPON THE ACCURACY OR     
ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS    
A CRIMINAL OFFENSE. 

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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE 
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Anchor National's Annual Report on Form 10-K for the year ended September 30,   
1998, and its quarterly report on Form 10-Q for the quarters ended December 31, 
1998 and March 31, 1999 are incorporated herein by reference. In addition,      
Anchor National filed three reports on Form 8-K on January 14 and 15 and March  
12, 1999. These reports are also incorporated herein by reference.              

All documents or reports filed by Anchor National under Section 13(a), 13(c),   
14, or 15(d) of the Securities Exchange Act of 1934, as amended (the "Exchange  
Act") after the effective date of this prospectus are also incorporated by      
reference. Statements contained in this prospectus and subsequently filed       
documents which are incorporated by reference or deemed to be incorporated by   
reference are deemed to modify or supersede documents incorporated herein by    
reference.                                                                      

Anchor National files its Exchange Act documents and reports, including its     
annual and quarterly reports on Form 10-K and Form 10-Q, electronically pursuant
to EDGAR under CIK No. 0000006342.                                              

Anchor National is subject to the informational requirements of the Securities  
and Exchange Act of 1934 (as amended). We file reports and other information    
with the SEC to meet those requirements. You can inspect and copy this          
information at SEC public facilities at the following locations:                

WASHINGTON, DISTRICT OF COLUMBIA                                                
450 Fifth Street, N.W., Room 1024                                               
Washington, D.C. 20549                                                          

CHICAGO, ILLINOIS                                                               
500 West Madison Street                                                         
Chicago, IL 60661                                                               

NEW YORK, NEW YORK                                                              
7 World Trade Center, 13th Fl.                                                  
New York, NY 10048                                                              

To obtain copies by mail contact the Washington, D.C. location. After you pay   
the fees as prescribed by the rules and regulations of the SEC, the required    
documents are mailed.                                                           

Registration statements under the Securities Act of 1933, as amended, related to
the contracts offered by this prospectus are on file with the SEC. This         
prospectus does not contain all of the information contained in the registration
statements and exhibits. For further information regarding the separate account,
Anchor National and its general account, the Variable Portfolios and the        
contract, please refer to the registration statements and exhibits.             

The SEC also maintains a website (http://www.sec.gov) that contains the SAI,    
materials incorporated by reference and other information filed electronically  
with the SEC by Anchor National.                                                

Anchor National will provide without charge to each person to whom this         
prospectus is delivered, upon written or oral request, a copy of the above      
documents incorporated by reference. Requests for these documents should be     
directed to Anchor National's Annuity Service Center, as follows:               
Anchor National Life Insurance Company                            
Annuity Service Center                                            
P.O. Box 54299                                                    
Los Angeles, California 90054-0299                                
Telephone Number: (800) 445-SUN2                                  

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SECURITIES AND EXCHANGE COMMISSION POSITION ON INDEMNIFICATION
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Indemnification for liabilities arising under the Securities Act of 1933 (the   
"Act") is provided to Anchor National's officers, directors and controlling     
persons. The SEC has advised that it believes such indemnification is against   
public policy under the Act and unenforceable. If a claim for indemnification   
against such liabilities (other than for Anchor National's payment of expenses  
incurred or paid by its directors, officers or controlling persons in the       
successful defense of any legal action) is asserted by a director, officer or   
controlling person of Anchor National in connection with the securities         
registered under this prospectus, Anchor National will submit to a court with   
jurisdiction to determine whether the indemnification is against public policy  
under the Act. Anchor National will be governed by final judgment of the issue. 
However, if in the opinion of Anchor National's counsel, this issue has been    
determined by controlling precedent, Anchor National will not submit the issue  
to a court for determination.                                                   

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                        TABLE OF CONTENTS                         
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INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE.............     2
SECURITIES AND EXCHANGE COMMISSION POSITION ON                    
  INDEMNIFICATION...........................................     2
GLOSSARY....................................................     3
FEE TABLES..................................................     4
      Owner Transaction Expenses............................     4
      Annual Separate Account Expenses......................     4
      Portfolio Expenses....................................     4
EXAMPLES....................................................     5
THE POLARIS(II) VARIABLE ANNUITY............................     7
PURCHASING A POLARIS(II) VARIABLE ANNUITY...................     8
      Allocation of Purchase Payments.......................     8
      Principal Rewards Program.............................     8
      Accumulation Units....................................     9
      Free Look.............................................     9
INVESTMENT OPTIONS..........................................     9
      Variable Portfolios...................................     9
      Anchor Series Trust...................................    10
      SunAmerica Series Trust...............................    10
      Fixed Account Options.................................    10
      Market Value Adjustment ("MVA").......................    11
      Transfers During the Accumulation Phase...............    11
      Dollar Cost Averaging.................................    12
      Asset Allocation Rebalancing Program..................    12
      Principal Advantage Program...........................    13
      Voting Rights.........................................    13
      Substitution..........................................    13
ACCESS TO YOUR MONEY........................................    13
      Systematic Withdrawal Program.........................    14
      Nursing Home Waiver...................................    14
      Minimum Contract Value................................    14
DEATH BENEFIT...............................................    14
EXPENSES....................................................    15
      Insurance Charges.....................................    15
      Withdrawal Charges....................................    15
      Investment Charges....................................    16
      Contract Maintenance Fee..............................    16
      Transfer Fee..........................................    16
      Premium Tax...........................................    16
      Income Taxes..........................................    16
      Reduction or Elimination of Charges and Expenses, and       
      Additional Amounts Credited...........................    16
INCOME OPTIONS..............................................    17
      Annuity Date..........................................    17
      Income Options........................................    17
      Fixed or Variable Income Payments.....................    17
      Income Payments.......................................    17
      Transfers During the Income Phase.....................    18
      Deferment of Payments.................................    18
      The Income Protector Feature..........................    18
TAXES.......................................................    19
      Annuity Contracts in General..........................    19
      Tax Treatment of Distributions - Non-Qualified              
      Contracts.............................................    19
      Tax Treatment of Distributions - Qualified                  
      Contracts.............................................    20
      Minimum Distributions.................................    20
      Diversification.......................................    20
PERFORMANCE.................................................    20
OTHER INFORMATION...........................................    21
      Anchor National.......................................    21
      The Separate Account..................................    21
      The General Account...................................    21
      Distribution of the Contract..........................    21
      Administration........................................    21
      Year 2000.............................................    22
      Legal Proceedings.....................................    22
      Ownership.............................................    22
      Custodian.............................................    22
      Independent Accountants...............................    22
      Registration Statement................................    23
TABLE OF CONTENTS OF STATEMENT OF ADDITIONAL INFORMATION....      
                                                                23
APPENDIX A -- CONDENSED FINANCIAL INFORMATION...............   A-1
APPENDIX B -- PRINCIPAL REWARDS PROGRAM DEFERRED PAYMENT          
  ENHANCEMENT EXAMPLES......................................   B-1
APPENDIX C -- MARKET VALUE ADJUSTMENT ("MVA")...............   C-1
APPENDIX D -- PREMIUM TAXES.................................   D-1

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                             GLOSSARY                             
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------------------------------------------------------------------
We have capitalized some of the technical terms used in this      
prospectus. To help you understand these terms, we have defined   
them in this glossary.                                            
ACCUMULATION PHASE - The period during which you invest money in  
your contract.                                                    
ACCUMULATION UNITS - A measurement we use to calculate the value  
of the variable portion of your contract during the Accumulation  
Phase.                                                            
ANNUITANT(S) - The person(s) on whose life (lives) we base income 
payments.                                                         
ANNUITY DATE - The date on which income payments are to begin, as 
selected by you.                                                  
ANNUITY UNITS - A measurement we use to calculate the amount of   
income payments you receive from the variable portion of your     
contract during the Income Phase.                                 
BENEFICIARY - The person designated to receive any benefits under 
the contract if you or the Annuitant dies.                        
COMPANY - Anchor National Life Insurance Company, We, Us, the     
insurer which issues this contract.                               
INCOME PHASE - The period during which we make income payments to 
you.                                                              
IRS - The Internal Revenue Service.                               
NON-QUALIFIED (CONTRACT) - A contract purchased with after-tax    
dollars. In general, these contracts are not under any pension    
plan, specially sponsored program or individual retirement account
("IRA").                                                          
PAYMENT ENHANCEMENT(S) - The amount(s) allocated to your contract 
by us under the Principal Rewards Program. Payment Enhancements   
are calculated as a percentage of your Purchase Payments and are  
considered earnings.                                              
PURCHASE PAYMENTS - The money you give us to buy the contract, as 
well as any additional money you give us to invest in the contract
after you own it.                                                 
QUALIFIED (CONTRACT) - A contract purchased with pretax dollars.  
These contracts are generally purchased under a pension plan,     
specially sponsored program or IRA.                               
TRUSTS - Refers to the Anchor Series Trust and the SunAmerica     
Series Trust collectively.                                        
VARIABLE PORTFOLIO(S) - The variable investment options available 
under the contract. Each Variable Portfolio has its own investment
objective and is invested in the underlying investments of the    
Anchor Series Trust or the SunAmerica Series Trust.               

ALL FINANCIAL REPRESENTATIVES OR AGENTS THAT SELL THE CONTRACTS OFFERED BY THIS 
PROSPECTUS ARE REQUIRED TO DELIVER A PROSPECTUS.                                

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FEE TABLES
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OWNER TRANSACTION EXPENSES                                                      

WITHDRAWAL CHARGE (AS A PERCENTAGE OF EACH PURCHASE PAYMENT)                    

                                                                [Download Table]
                                                                          
YEARS:..................   1    2    3    4    5    6    7    8    9   10 
Schedule A*.............  7%   6%   5%   4%   3%   2%   1%   0%   0%   0% 
Schedule B**............  9%   9%   8%   7%   6%   5%   4%   3%   2%   0% 

* This schedule applies to each Purchase Payment if you are not participating 
in the Principal Rewards Program.                                         
** This schedule applies to each Purchase Payment if you are participating in   
the Principal Rewards Program.                                            

                                                                [Download Table]
                                                                   
TRANSFER FEE....................   No charge for first 15 transfers
                                   each contract year; thereafter, 
                                   fee is $25 ($10 in Pennsylvania 
                                   and Texas) per transfer         

CONTRACT MAINTENANCE FEE*                                                   
$35 ($30 in North Dakota)                                       
*waived if contract value is $50,000 or more                            

ANNUAL SEPARATE ACCOUNT EXPENSES                                            
(AS A PERCENTAGE OF AVERAGE ACCOUNT VALUE)                                  

                                                                [Download Table]
                                                        
Mortality and Expense Risk Charge................  1.37%
Distribution Expense Charge......................  0.15%
                                                   -----
    TOTAL SEPARATE ACCOUNT EXPENSES                1.52%
                                                   =====

PORTFOLIO EXPENSES

ANCHOR SERIES TRUST 
(AS A PERCENTAGE OF AVERAGE NET ASSETS FOR THE TRUST'S TWELVE-MONTH PERIOD ENDED
NOVEMBER 30, 1998)

                                                        [Enlarge/Download Table]

                                                              MANAGEMENT         OTHER        TOTAL ANNUAL 
                         PORTFOLIO                                FEE          EXPENSES         EXPENSES   
                                                                                                           
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------
Capital Appreciation                                              .64%            .04%             .68%    
-----------------------------------------------------------------------------------------------------------
Growth                                                            .70%            .05%             .75%    
-----------------------------------------------------------------------------------------------------------
Natural Resources                                                 .75%            .13%             .88%    
-----------------------------------------------------------------------------------------------------------
Government and Quality Bond                                       .61%            .06%             .67%    
-----------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------

SUNAMERICA SERIES TRUST 
(AS A PERCENTAGE OF AVERAGE NET ASSETS AFTER REIMBURSEMENT OR WAIVER OF EXPENSES
FOR THE TRUST'S FISCAL YEAR ENDED NOVEMBER 30, 1998)

                                                        [Enlarge/Download Table]

                                                              MANAGEMENT         OTHER        TOTAL ANNUAL  
                         PORTFOLIO                                FEE          EXPENSES         EXPENSES    
                                                                                                            
----------------------------------------------------------------------------------------------------------- 
----------------------------------------------------------------------------------------------------------- 
Emerging Markets*                                                1.25%            .65%            1.90%     
----------------------------------------------------------------------------------------------------------- 
International Diversified Equities                               1.00%            .26%            1.26%     
----------------------------------------------------------------------------------------------------------- 
Global Equities                                                   .74%            .14%             .88%     
----------------------------------------------------------------------------------------------------------- 
International Growth and Income**                                1.00%            .46%            1.46%     
----------------------------------------------------------------------------------------------------------- 
Aggressive Growth                                                 .74%            .09%             .83%     
----------------------------------------------------------------------------------------------------------- 
MFS Mid-Cap Growth***                                             .75%            .25%            1.00%     
----------------------------------------------------------------------------------------------------------- 
Real Estate**                                                     .80%            .15%             .95%     
----------------------------------------------------------------------------------------------------------- 
Putnam Growth                                                     .81%            .05%             .86%     
----------------------------------------------------------------------------------------------------------- 
MFS Growth and Income****+                                        .70%            .03%             .73%     
----------------------------------------------------------------------------------------------------------- 
Alliance Growth+                                                  .61%            .03%             .64%     
----------------------------------------------------------------------------------------------------------- 
"Dogs" of Wall Street*                                            .60%            .25%             .85%*****
----------------------------------------------------------------------------------------------------------- 
Venture Value                                                     .72%            .03%             .75%     
----------------------------------------------------------------------------------------------------------- 
Federated Value                                                   .75%            .08%             .83%     
----------------------------------------------------------------------------------------------------------- 
Growth-Income                                                     .56%            .04%             .60%     
----------------------------------------------------------------------------------------------------------- 
Utility**                                                         .75%            .26%            1.01%     
----------------------------------------------------------------------------------------------------------- 
Asset Allocation                                                  .59%            .05%             .64%     
----------------------------------------------------------------------------------------------------------- 
MFS Total Return****+                                             .67%            .10%             .77%     
----------------------------------------------------------------------------------------------------------- 
SunAmerica Balanced                                               .68%            .10%             .78%     
----------------------------------------------------------------------------------------------------------- 
Worldwide High Income                                            1.00%            .08%            1.08%     
----------------------------------------------------------------------------------------------------------- 
High-Yield Bond                                                   .63%            .06%             .69%     
----------------------------------------------------------------------------------------------------------- 
Corporate Bond                                                    .65%            .12%             .77%     
----------------------------------------------------------------------------------------------------------- 
Global Bond                                                       .70%            .15%             .85%     
----------------------------------------------------------------------------------------------------------- 
Cash Management                                                   .53%            .05%             .58%     
----------------------------------------------------------------------------------------------------------- 
----------------------------------------------------------------------------------------------------------- 

   * Absent fee waivers or reimbursement of expenses by the adviser, you would
      have incurred the following expenses during the last fiscal year: Emerging
Markets (2.01%) and "Dogs" of Wall Street (.92%).                   

  ** Absent recoupment of expenses by the adviser, you would have incurred the
    following expenses during the last fiscal year: International Growth and
Income (1.40%); Real Estate (.93%); and Utility (.92%).             

*** This Portfolio was not available for sale during fiscal year 1998. The  
   percentages are based on estimated amounts for the current fiscal year.

**** As of January 4, 1998, the Growth/Phoenix Portfolio was renamed the MFS  
Growth and Income Portfolio, and the Balanced/Phoenix Portfolio was 
 renamed the MFS Total Return Portfolio, each managed by Massachusetts
Financial Services Company.                                         

***** Annualized.                                                               

 + The expenses noted here are restated to reflect an estimate of fees for
each portfolio for the current fiscal year.                         
THE ABOVE PORTFOLIO EXPENSES WERE PROVIDED BY THE TRUSTS. WE HAVE NOT 
INDEPENDENTLY VERIFIED THE ACCURACY OF THE INFORMATION. 

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EXAMPLES
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You will pay the following expenses on a $1,000 investment in each Variable     
Portfolio, assuming a 5% annual return on assets, no participation in the       
Principal Rewards Program and:                                                  
    (a) you surrender the contract at the end of the stated time period.
(b) you do not surrender the contract.*                         

                                                        [Enlarge/Download Table]

                         PORTFOLIO                             1 YEAR    3 YEARS    5 YEARS   10 YEARS
                                                                                                      
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Capital Appreciation                                          (a) $ 93  (a) $121   (a) $152   (a) $262
                                                              (b) $ 23  (b) $ 71   (b) $122   (b) $262
------------------------------------------------------------------------------------------------------
Growth                                                        (a) $ 94  (a) $124   (a) $156   (a) $269
                                                              (b) $ 24  (b) $ 74   (b) $126   (b) $269
------------------------------------------------------------------------------------------------------
Natural Resources                                             (a) $ 95  (a) $127   (a) $162   (a) $282
                                                              (b) $ 25  (b) $ 77   (b) $132   (b) $282
------------------------------------------------------------------------------------------------------
Government and Quality Bond                                   (a) $ 93  (a) $121   (a) $152   (a) $261
                                                              (b) $ 23  (b) $ 71   (b) $122   (b) $261
------------------------------------------------------------------------------------------------------
Emerging Markets                                              (a) $105  (a) $158   (a) $212   (a) $378
                                                              (b) $ 35  (b) $108   (b) $182   (b) $378
------------------------------------------------------------------------------------------------------
International Diversified Equities                            (a) $ 99  (a) $139   (a) $181   (a) $319
                                                              (b) $ 29  (b) $ 89   (b) $151   (b) $319
------------------------------------------------------------------------------------------------------
Global Equities                                               (a) $ 95  (a) $127   (a) $162   (a) $282
                                                              (b) $ 25  (b) $ 77   (b) $132   (b) $282
------------------------------------------------------------------------------------------------------
International Growth and Income                               (a) $101  (a) $145   (a) $191   (a) $338
                                                              (b) $ 31  (b) $ 95   (b) $161   (b) $338
------------------------------------------------------------------------------------------------------
Aggressive Growth                                             (a) $ 95  (a) $126   (a) $160   (a) $277
                                                              (b) $ 25  (b) $ 76   (b) $130   (b) $277
------------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth                                            (a) $ 96  (a) $131   (a) $168   (a) $294
                                                              (b) $ 26  (b) $ 81   (b) $138   (b) $294
------------------------------------------------------------------------------------------------------
Real Estate                                                   (a) $ 96  (a) $130   (a) $166   (a) $289
                                                              (b) $ 26  (b) $ 80   (b) $136   (b) $289
------------------------------------------------------------------------------------------------------
Putnam Growth                                                 (a) $ 95  (a) $127   (a) $161   (a) $280
                                                              (b) $ 25  (b) $ 77   (b) $131   (b) $280
------------------------------------------------------------------------------------------------------
MFS Growth and Income                                         (a) $ 94  (a) $123   (a) $155   (a) $267
                                                              (b) $ 24  (b) $ 73   (b) $125   (b) $267
------------------------------------------------------------------------------------------------------
Alliance Growth                                               (a) $ 93  (a) $120   (a) $150   (a) $258
                                                              (b) $ 23  (b) $ 70   (b) $120   (b) $258
------------------------------------------------------------------------------------------------------
"Dogs" of Wall Street                                         (a) $ 95  (a) $127   (a) $161   (a) $279
                                                              (b) $ 25  (b) $ 77   (b) $131   (b) $279
------------------------------------------------------------------------------------------------------
Venture Value                                                 (a) $ 94  (a) $124   (a) $156   (a) $269
                                                              (b) $ 24  (b) $ 74   (b) $126   (b) $269
------------------------------------------------------------------------------------------------------
Federated Value                                               (a) $ 95  (a) $126   (a) $160   (a) $277
                                                              (b) $ 25  (b) $ 76   (b) $130   (b) $277
------------------------------------------------------------------------------------------------------
Growth-Income                                                 (a) $ 92  (a) $119   (a) $148   (a) $254
                                                              (b) $ 22  (b) $ 69   (b) $118   (b) $254
------------------------------------------------------------------------------------------------------
Utility                                                       (a) $ 96  (a) $131   (a) $169   (a) $295
                                                              (b) $ 26  (b) $ 81   (b) $139   (b) $295
------------------------------------------------------------------------------------------------------
Asset Allocation                                              (a) $ 93  (a) $120   (a) $150   (a) $258
                                                              (b) $ 23  (b) $ 70   (b) $120   (b) $258
------------------------------------------------------------------------------------------------------
MFS Total Return                                              (a) $ 94  (a) $124   (a) $157   (a) $271
                                                              (b) $ 24  (b) $ 74   (b) $127   (b) $271
------------------------------------------------------------------------------------------------------
SunAmerica Balanced                                           (a) $ 94  (a) $124   (a) $157   (a) $272
                                                              (b) $ 24  (b) $ 74   (b) $127   (b) $272
------------------------------------------------------------------------------------------------------
Worldwide High Income                                         (a) $ 97  (a) $133   (a) $172   (a) $302
                                                              (b) $ 27  (b) $ 83   (b) $142   (b) $302
------------------------------------------------------------------------------------------------------
High-Yield Bond                                               (a) $ 93  (a) $122   (a) $153   (a) $263
                                                              (b) $ 23  (b) $ 72   (b) $123   (b) $263
------------------------------------------------------------------------------------------------------
Corporate Bond                                                (a) $ 94  (a) $124   (a) $157   (a) $271
                                                              (b) $ 24  (b) $ 74   (b) $127   (b) $271
------------------------------------------------------------------------------------------------------
Global Bond                                                   (a) $ 95  (a) $127   (a) $161   (a) $279
                                                              (b) $ 25  (b) $ 77   (b) $131   (b) $279
------------------------------------------------------------------------------------------------------
Cash Management                                               (a) $ 92  (a) $118   (a) $147   (a) $252
                                                              (b) $ 22  (b) $ 68   (b) $117   (b) $252
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------

    * We do not currently charge a surrender charge upon annuitization
           unless the contract is annuitized using the Income Protector feature.
        We assess the applicable surrender charge upon annuitization under
    the Income Protector feature assuming a full surrender of your
contract.                                                 

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--------------------------------------------------------------------------------
EXAMPLES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
You will pay the following expenses on a $1,000 investment in each Variable     
Portfolio, assuming a 5% annual return on assets, participation in the Principal
Rewards Program and:                                                            
    (a) you surrender the contract at the end of the stated time period.
(b) you do not surrender the contract*                          

                                                        [Enlarge/Download Table]

                         PORTFOLIO                             1 YEAR    3 YEARS    5 YEARS   10 YEARS
                                                                                                      
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------
Capital Appreciation                                          (a) $113  (a) $151   (a) $182   (a) $262
                                                              (b) $ 23  (b) $ 71   (b) $122   (b) $262
------------------------------------------------------------------------------------------------------
Growth                                                        (a) $114  (a) $154   (a) $186   (a) $269
                                                              (b) $ 24  (b) $ 74   (b) $126   (b) $269
------------------------------------------------------------------------------------------------------
Natural Resources                                             (a) $115  (a) $157   (a) $192   (a) $282
                                                              (b) $ 25  (b) $ 77   (b) $132   (b) $282
------------------------------------------------------------------------------------------------------
Government and Quality Bond                                   (a) $113  (a) $151   (a) $182   (a) $261
                                                              (b) $ 23  (b) $ 71   (b) $122   (b) $261
------------------------------------------------------------------------------------------------------
Emerging Markets                                              (a) $125  (a) $188   (a) $242   (a) $378
                                                              (b) $ 35  (b) $108   (b) $182   (b) $378
------------------------------------------------------------------------------------------------------
International Diversified Equities                            (a) $119  (a) $169   (a) $211   (a) $319
                                                              (b) $ 29  (b) $ 89   (b) $151   (b) $319
------------------------------------------------------------------------------------------------------
Global Equities                                               (a) $115  (a) $157   (a) $192   (a) $282
                                                              (b) $ 25  (b) $ 77   (b) $132   (b) $282
------------------------------------------------------------------------------------------------------
International Growth and Income                               (a) $121  (a) $175   (a) $221   (a) $338
                                                              (b) $ 31  (b) $ 95   (b) $161   (b) $338
------------------------------------------------------------------------------------------------------
Aggressive Growth                                             (a) $115  (a) $156   (a) $190   (a) $277
                                                              (b) $ 25  (b) $ 76   (b) $130   (b) $277
------------------------------------------------------------------------------------------------------
MFS Mid-Cap Growth                                            (a) $116  (a) $161   (a) $198   (a) $294
                                                              (b) $ 26  (b) $ 81   (b) $138   (b) $294
------------------------------------------------------------------------------------------------------
Real Estate                                                   (a) $116  (a) $160   (a) $196   (a) $289
                                                              (b) $ 26  (b) $ 80   (b) $136   (b) $289
------------------------------------------------------------------------------------------------------
Putnam Growth                                                 (a) $115  (a) $157   (a) $191   (a) $280
                                                              (b) $ 25  (b) $ 77   (b) $131   (b) $280
------------------------------------------------------------------------------------------------------
MFS Growth and Income                                         (a) $114  (a) $153   (a) $185   (a) $267
                                                              (b) $ 24  (b) $ 73   (b) $125   (b) $267
------------------------------------------------------------------------------------------------------
Alliance Growth                                               (a) $113  (a) $150   (a) $180   (a) $258
                                                              (b) $ 23  (b) $ 70   (b) $120   (b) $258
------------------------------------------------------------------------------------------------------
"Dogs" of Wall Street                                         (a) $115  (a) $157   (a) $191   (a) $279
                                                              (b) $ 25  (b) $ 77   (b) $131   (b) $279
------------------------------------------------------------------------------------------------------
Venture Value                                                 (a) $114  (a) $154   (a) $186   (a) $269
                                                              (b) $ 24  (b) $ 74   (b) $126   (b) $269
------------------------------------------------------------------------------------------------------
Federated Value                                               (a) $115  (a) $156   (a) $190   (a) $277
                                                              (b) $ 25  (b) $ 76   (b) $130   (b) $277
------------------------------------------------------------------------------------------------------
Growth-Income                                                 (a) $112  (a) $149   (a) $178   (a) $254
                                                              (b) $ 22  (b) $ 69   (b) $118   (b) $254
------------------------------------------------------------------------------------------------------
Utility                                                       (a) $116  (a) $161   (a) $199   (a) $295
                                                              (b) $ 26  (b) $ 81   (b) $139   (b) $295
------------------------------------------------------------------------------------------------------
Asset Allocation                                              (a) $113  (a) $150   (a) $180   (a) $258
                                                              (b) $ 23  (b) $ 70   (b) $120   (b) $258
------------------------------------------------------------------------------------------------------
MFS Total Return                                              (a) $114  (a) $154   (a) $187   (a) $271
                                                              (b) $ 24  (b) $ 74   (b) $127   (b) $271
------------------------------------------------------------------------------------------------------
SunAmerica Balanced                                           (a) $114  (a) $154   (a) $187   (a) $272
                                                              (b) $ 24  (b) $ 74   (b) $127   (b) $272
------------------------------------------------------------------------------------------------------
Worldwide High Income                                         (a) $117  (a) $163   (a) $202   (a) $302
                                                              (b) $ 27  (b) $ 83   (b) $142   (b) $302
------------------------------------------------------------------------------------------------------
High-Yield Bond                                               (a) $113  (a) $152   (a) $183   (a) $263
                                                              (b) $ 23  (b) $ 72   (b) $123   (b) $263
------------------------------------------------------------------------------------------------------
Corporate Bond                                                (a) $114  (a) $154   (a) $187   (a) $271
                                                              (b) $ 24  (b) $ 74   (b) $127   (b) $271
------------------------------------------------------------------------------------------------------
Global Bond                                                   (a) $115  (a) $157   (a) $191   (a) $279
                                                              (b) $ 25  (b) $ 77   (b) $131   (b) $279
------------------------------------------------------------------------------------------------------
Cash Management                                               (a) $112  (a) $148   (a) $177   (a) $252
                                                              (b) $ 22  (b) $ 68   (b) $117   (b) $252
------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------

    * We do not currently charge a surrender charge upon annuitization
           unless the contract is annuitized using the Income Protector feature.
        We assess the applicable surrender charge upon annuitization under
    the Income Protector feature assuming a full surrender of your
contract.                                                 
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EXPLANATION OF FEE TABLES AND EXAMPLES                                          

1.  The purpose of the Fee Tables is to show you the various expenses you would 
incur directly and indirectly by investing in the contract.             

2.  For certain Variable Portfolios, the adviser, SunAmerica Asset Management   
  Corp., has voluntarily agreed to waive fees or reimburse certain expenses,
 if necessary, to keep annual operating expenses at or below the lesser of
the maximum allowed by any applicable state expense limitations or the  
following percentages of each Variable Portfolio's average net assets:  
    SunAmerica Balanced (1.00%); "Dogs" of Wall Street (.85%); Aggressive Growth
   (.90%); Federated Value (1.03%); Utility (1.05%); Emerging Markets (1.90%);
International Growth and Income (1.60%); and Real Estate (1.25%). The   
adviser also may voluntarily waive or reimburse additional amounts to   
increase a Variable Portfolio's investment return. All waivers and/or   
  reimbursements may be terminated at any time. Furthermore, the adviser may
   recoup any waivers or reimbursements within two years after such waivers or
   reimbursements are granted, provided that the Variable Portfolio is able to
make such payment and remain in compliance with the foregoing expense   
limitations.                                                            

3.  The Examples assume that no transfer fees were imposed. Although premium    
  taxes may apply in certain states, they are not reflected in the Examples.

4.  THESE EXAMPLES SHOULD NOT BE CONSIDERED A REPRESENTATION OF PAST OR FUTURE  
EXPENSES. ACTUAL EXPENSES MAY BE GREATER OR LESS THAN THOSE SHOWN.      

THE HISTORICAL ACCUMULATION UNIT VALUES ARE CONTAINED IN APPENDIX A -- CONDENSED
FINANCIAL INFORMATION.

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THE POLARIS(II) VARIABLE ANNUITY
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An annuity is a contract between you and an insurance company. You are the owner
of the contract. The contract provides three main benefits:                     

    - Tax Deferral: This means that you do not pay taxes on your earnings from
the annuity until you withdraw them.                              

  - Death Benefit: If you die during the Accumulation Phase, the insurance
company pays a death benefit to your Beneficiary.                 

  - Guaranteed Income: If elected, you receive a stream of income for your
lifetime, or another available period you select.                 

Tax-qualified retirement plans (e.g., IRAs, 401(k) or 403(b) plans) defer       
payment of taxes on earnings until withdrawal. If you are considering funding a 
tax-qualified retirement plan with an annuity, you should know that an annuity  
does not provide any additional tax deferral treatment of earnings beyond the   
treatment provided by the tax-qualified retirement plan itself. However,        
annuities do provide other features and benefits which may be valuable to you.  
You should fully discuss this decision with your financial representative.      

This annuity was developed to help you contribute to your retirement savings.   
This annuity works in two stages, the Accumulation Phase and the Income Phase.  
Your contract is in the Accumulation Phase during the period when you make      
payments into the contract. The Income Phase begins when you request us to start
making income payments to you out of the money accumulated in your contract.    

The contract is called a "variable" annuity because it allows you to invest in  
variable portfolios which, like mutual funds, have different investment         
objectives and performance which varies. You can gain or lose money if you      
invest in these Variable Portfolios. The amount of money you accumulate in your 
contract depends on the performance of the Variable Portfolios in which you     
invest. This contract currently offers 27 Variable Portfolios.                  

The contract also offers several fixed account options for varying time periods.
Fixed account options earn interest at a rate set and guaranteed by Anchor      
National. If you allocate money to the fixed account options, the amount of     
money that accumulates in the contract depends on the total interest credited to
the particular fixed account option(s) in which you invest.                     

For more information on investment options available under this contract SEE    
INVESTMENT OPTIONS ON PAGE 9.                                                   

This annuity is designed to assist in contributing to retirement savings of     
investors whose personal circumstances allow for a long-term investment time    
horizon. As a function of the Internal Revenue Code ("IRC"), you may be assessed
a 10% federal tax penalty on any withdrawal made prior to your reaching age     
59 1/2. Additionally, this contract provides that you will be charged a         
withdrawal charge on each purchase payment withdrawn if that purchase payment   
has not been invested in this contract for at least 7 years, or 9 years if you  
elect to participate in the Principal Rewards Program. Because of these         
potential penalties, you should fully discuss all of the benefits and risks of  
this contract with your financial representative prior to purchase.             

Anchor National Life Insurance Company (Anchor National, The Company, Us, We)   
issues the PolarisII Variable Annuity. When you purchase a PolarisII Variable   
Annuity, a contract exists between you and Anchor National. The Company is a    
stock life insurance company organized under the laws of the state of Arizona.  
Its principal place of business is 1 SunAmerica Center, Los Angeles, California 
90067. The Company conducts life insurance and annuity business in the District 
of Columbia and all states except New York. Anchor National is an indirect,     
wholly owned subsidiary of American International Group, Inc. ("AIG"), a        
Delaware corporation.                                                           

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PURCHASING A POLARIS(II) VARIABLE ANNUITY 
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An initial Purchase Payment is the money you give us to buy a contract. Any     
additional money you give us to invest in the contract after purchase is a      
subsequent Purchase Payment.                                                    

The following chart shows the minimum initial and subsequent Purchase Payments  
permitted under your contract. These amounts depend upon whether a contract is  
Qualified or Non-qualified for tax purposes. FOR FURTHER EXPLANATION, SEE TAXES 
ON PAGE 19.                                                                     

                                                                [Download Table]
                                                           
-----------------------------------------------------------
                                              Minimum      
                       Minimum Initial       Subsequent    
                       Purchase Payment   Purchase Payment 
-----------------------------------------------------------
      Qualified             $2,000              $250       
-----------------------------------------------------------
    Non-Qualified           $5,000              $500       
-----------------------------------------------------------

Prior Company approval is required to accept Purchase Payments greater than     
$1,000,000. The Company reserves the right to refuse any Purchase Payment       
including to one which would cause the contract value or total Purchase Payments
to exceed $1,000,000 at the time of the Purchase Payment. Also, the optional    
automatic payment plan allows you to make subsequent Purchase Payments of as    
little as $20.00.                                                               

We may refuse any Purchase Payment. In general, we will not issue a Qualified   
contract to anyone who is age 70 1/2 or older, unless it is shown that the      
minimum distribution required by the IRS is being made. In addition, we may not 
issue a contract to anyone over age 90. You may not elect to participate in the 
Principal Rewards Program if you are over age 80 at the time of contract issue. 

ALLOCATION OF PURCHASE PAYMENTS                                                 

We invest your Purchase Payments in the fixed and variable investment options   
according to your instructions. If we receive a Purchase Payment without        
allocation instructions, we will invest the money according to your last        
allocation instructions. SEE INVESTMENT OPTIONS ON PAGE 9.                      

In order to issue your contract, we must receive your completed application,    
Purchase Payment allocation instructions and any other required paperwork at our
principal place of business. We allocate your initial Purchase Payment within   
two days of receiving it. If we do not have complete information necessary to   
issue your contract, we will contact you. If we do not have the information     
necessary to issue your contract within 5 business days we will:                

- Send your money back to you, or;                                    

- Ask your permission to keep your money until we get the information 
necessary to issue the contract.                                  

PRINCIPAL REWARDS PROGRAM                                                       

If you elect to participate in this program at contract issue, we contribute an 
amount to your contract with each Purchase Payment you invest during the life of
your contract. This amount is referred to as a Payment Enhancement. If you elect
to participate in this program, all Purchase Payments are subject to a nine year
withdrawal charge period. You may not elect to participate in this program if   
you are over age 80 at the time of contract issue. Payment Enhancements are     
considered earnings under your contract and are allocated to your contract as   
described below.                                                                

Initial Payment Enhancement                                                     

An Initial Payment Enhancement is the amount we add to your contract on the day 
we receive a Purchase Payment. An Initial Payment Enhancement is calculated as a
percentage of each Purchase Payment and is allocated among the fixed and        
variable investment options according to the allocation instructions in effect  
on the day we receive the Purchase Payment. The Initial Payment Enhancement is  
2.00% of each Purchase Payment.                                                 

Purchase Payments may not be invested in the 6-month or the 1-year Dollar Cost  
Averaging fixed accounts if you participate in the Principal Rewards Program.   
However, you may use the 1-year fixed account option as a Dollar Cost Averaging 
source account.                                                                 

Deferred Payment Enhancement                                                    

A Deferred Payment Enhancement is the amount we may add to your contract on a   
future date (the "Deferred Payment Enhancement Date"). The amount and date of a 
Deferred Payment Enhancement are guaranteed based on the Current Deferred       
Payment Enhancement Percentage and Current Deferred Payment Enhancement Date in 
effect at the time we receive your Purchase Payment.                            

The Deferred Payment Enhancement amount, if any, is determined as a percentage  
of each Purchase Payment (the "Deferred Payment Enhancement Percentage"). If you
withdraw any portion of a Purchase Payment prior to the Deferred Payment        
Enhancement Date, we reduce the amount of the corresponding Deferred Payment    
Enhancement in the same proportion that your withdrawal reduces your Purchase   
Payment (and any fees and charges associated with such withdrawals). Withdrawals
are assumed to be taken from earnings first then from Purchase Payments, on a   
first-in-first-out basis. APPENDIX B shows how we calculate the Deferred Payment
Enhancement amount.                                                             

We periodically establish the Current Deferred Payment Enhancement Percentage   
and Date. For Purchase Payments received by March 31, 2000, the Current Deferred
Payment Enhancement Percentage is 2.00% and the Current Deferred Payment        
Enhancement Date is nine years from the date we receive each Purchase Payment.  
After March 31, 2000, the Current Deferred Payment Enhancement Percentage may be
increased, decreased or eliminated by the us. Additionally, the Current Deferred
Payment Enhancement Date may be different for Purchase Payments received after  
March 31, 2000.                                                                 

We will not allocate a Deferred Payment Enhancement to your contract if any of  
the following circumstances occurs prior to the Deferred Payment Enhancement    
Date:                                                                           

- You surrender your contract;                                        

- A death benefit is paid on your contract;                           

- You switch to the Income Phase of your contract; or                 

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- You fully withdraw the corresponding Purchase Payment.              

The Principal Rewards Program may not be available to you. Please check with    
your financial representative regarding the availability of this program.       

We reserve the right to modify, suspend or terminate the Principal Rewards      
Program at any time.                                                            

ACCUMULATION UNITS                                                              

When you allocate a Purchase Payment to the Variable Portfolios, we credit your 
contract with Accumulation Units of the separate account. We base the number of 
Accumulation Units you receive on the unit value of the Variable Portfolio as of
the day we receive your money if we receive it before 1 p.m. Pacific Standard   
Time, or on the next business day's unit value if we receive your money after 1 
p.m. Pacific Standard Time. The value of an Accumulation Unit goes up and down  
based on the performance of the Variable Portfolios.                            

We calculate the value of an Accumulation Unit each day that the New York Stock 
Exchange ("NYSE") is open as follows:                                           

    1. We determine the total value of money invested in a particular Variable
Portfolio;                                                      

2. We subtract from that amount all applicable contract charges; and  

   3. We divide this amount by the number of outstanding Accumulation Units.

We determine the number of Accumulation Units credited to your contract by      
dividing the Purchase Payment and Payment Enhancement, if applicable, by the    
Accumulation Unit value for the specific Variable Portfolio.                    

EXAMPLE (CONTRACTS WITHOUT PRINCIPAL REWARDS):                        

   We receive a $25,000 Purchase Payment from you on Wednesday. You allocate
   the money to the Global Bond Portfolio. We determine that the value of an
 Accumulation Unit for the Global Bond Portfolio is $11.10 when the NYSE
closes on Wednesday. We then divide $25,000 by $11.10 and credit your 
contract on Wednesday night with 2252.2523 Accumulation Units for the 
Global Bond Portfolio.                                                

EXAMPLE (CONTRACTS WITH PRINCIPAL REWARDS):                           

   We receive a $25,000 Purchase Payment from you on Wednesday. You allocate
    the money to the Global Bond Portfolio. The Initial Payment Enhancement is
2.00% of your Purchase Payment. Therefore, we add an Initial Payment  
 Enhancement of $500 to your contract. We determine that the value of an
 Accumulation Unit for the Global Bond Portfolio is $11.10 when the NYSE
closes on Wednesday. We then divide $25,500 by $11.10 and credit your 
 contract on Wednesday with 2,297.2973 Accumulation Units for the Global
Bond Portfolio.                                                       

Performance of the Variable Portfolios and expenses under your contract affect  
Accumulation Unit values. These factors cause the value of your contract to go  
up and down.                                                                    

FREE LOOK                                                                       

You may cancel your contract within ten days after receiving it (or longer if   
required by state law). We call this a "free look." To cancel, you must mail the
contract along with your free look request to our Annuity Service Center at P.O.
Box 54299, Los Angeles, California 90054-0299.                                  

If you decide to cancel your contract during the free look period, we will      
refund to you the value of your contract on the day we receive your request     
minus the Free Look Payment Enhancement Deduction, if applicable. The Free Look 
Payment Enhancement Deduction is equal to the lesser of (1) the value of any    
Payment Enhancement(s) on the day we receive your free look request; or (2) the 
Payment Enhancement amount(s), if any, which we allocated to your contract.     
Thus, you receive any gain and we bear any loss on any Payment Enhancement(s) if
you decide to cancel your contract during the free look period.                 

Certain states require us to return your Purchase Payments upon a free look     
request. Additionally, all contracts issued as an IRA require the full return of
Purchase Payments upon a free look. With respect to those contracts, we reserve 
the right to put your money in the Cash Management Portfolio during the free    
look period and will allocate your money according to your instructions at the  
end of the applicable free look period. Currently, we do not put your money in  
the Cash Management Portfolio during the free look period unless you allocate   
your money to it. If your contract was issued in a state requiring return of    
Purchase Payments or as an IRA and you cancel your contract during the free look
period, we return the greater of (1) your Purchase Payments; or (2) the value of
your contract minus the Free Look Payment Enhancement Deduction, if applicable. 
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INVESTMENT OPTIONS
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VARIABLE PORTFOLIOS                                                             

The contract currently offers 27 Variable Portfolios. These Variable Portfolios 
invest in shares of the Anchor Series Trust and the SunAmerica Series Trust (the
"Trusts"). Additional Variable Portfolios may be available in the future. The   
Variable Portfolios operate similar to a mutual fund but are only available     
through the purchase of certain insurance contracts.                            

SunAmerica Asset Management Corp., an indirect wholly owned subsidiary of AIG,  
is the investment adviser to the Trusts. The Trusts serve as the underlying     
investment vehicles for other variable annuity contracts issued by Anchor       
National, and other affiliated/unaffiliated insurance companies. Neither Anchor 
National nor the Trusts believe that offering shares of the Trusts in this      
manner disadvantages you. The adviser monitors the Trusts for potential         
conflicts.                                                                      

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The Variable Portfolios along with their respective subadvisers are listed      
below:                                                                          

ANCHOR SERIES TRUST                                                   

Wellington Management Company, LLP serves as subadviser to the Anchor Series    
Trust Portfolios. Anchor Series Trust has investment portfolios in addition to  
those listed below which are not available for investment under the contract.   
The 4 available investment portfolios are:                                      

MANAGED BY WELLINGTON MANAGEMENT COMPANY, LLP                               

- Capital Appreciation Portfolio                                      
- Growth Portfolio                                                    
- Natural Resources Portfolio                                         
- Government and Quality Bond Portfolio                               

SUNAMERICA SERIES TRUST                                               

Various subadvisers provide investment advice for the SunAmerica Series Trust   
Portfolios. SunAmerica Series Trust has investment portfolios in addition to    
those listed below which are not available for investment under the contract.   
The 23 investment portfolios and the subadvisers are:                           

MANAGED BY ALLIANCE CAPITAL MANAGEMENT L.P.                                 
- Global Equities Portfolio                                             
- Alliance Growth Portfolio                                             
- Growth Income Portfolio                                               

MANAGED BY DAVIS SELECTED ADVISERS, L.P.                                    
- Venture Value Portfolio                                               
- Real Estate Portfolio                                                 

MANAGED BY FEDERATED INVESTORS                                              

- Federated Value Portfolio                                             
- Utility Portfolio                                                     
- Corporate Bond Portfolio                                              

MANAGED BY GOLDMAN SACHS ASSET MANAGEMENT/GOLDMAN                           
SACHS ASSET MANAGEMENT INTERNATIONAL                                        
- Asset Allocation Portfolio                                            
- Global Bond Portfolio                                                 

MANAGED BY MASSACHUSETTS FINANCIAL SERVICES COMPANY                         
- MFS Mid-Cap Growth                                                    
- MFS Growth and Income Portfolio                                       
- MFS Total Return Portfolio                                            

MANAGED BY MORGAN STANLEY ASSET MANAGEMENT                                  
- International Diversified Equities Portfolio                          
- Worldwide High Income Portfolio                                       

MANAGED BY PUTNAM INVESTMENT MANAGEMENT                                     
- Putnam Growth Portfolio                                               
- International Growth and Income Portfolio                             
- Emerging Markets Portfolio                                            

MANAGED BY SUNAMERICA ASSET MANAGEMENT, INC.                                
- Aggressive Growth Portfolio                                           
- "Dogs" of Wall Street Portfolio                                       
- SunAmerica Balanced Portfolio                                         
- High-Yield Bond Portfolio                                             
- Cash Management Portfolio                                             

YOU SHOULD READ THE ATTACHED PROSPECTUSES FOR THE TRUSTS CAREFULLY. THESE       
PROSPECTUSES CONTAIN DETAILED INFORMATION ABOUT THE VARIABLE PORTFOLIOS,        
INCLUDING EACH VARIABLE PORTFOLIO'S INVESTMENT OBJECTIVE AND RISK FACTORS.      

FIXED ACCOUNT OPTIONS                                                           

The contract also offers seven fixed account options. Anchor National will      
guarantee the interest rate earned on money you allocate to any of these fixed  
account options. We currently offer fixed account options for periods of one,   
three, five, seven and ten years, which we call guarantee periods. If you do not
elect to participate in the Principal Rewards Program, you also have the option 
of allocating your money to the 6-month DCA fixed account and/or the 1-year DCA 
fixed account (the "DCA fixed accounts") which are available in conjunction with
the Dollar Cost Averaging Program. The 6-month and 1-year DCA fixed account     
options are not available to you if you elect to participate in the Principal   
Rewards Program. Please see the section on DOLLAR COST AVERAGING ON PAGE 12 for 
additional information about, including limitations on, and the availability and
operation of the DCA fixed accounts. The DCA fixed accounts are only available  
for new Purchase Payments.                                                      

Each guarantee period may offer a different interest rate but will never be less
than an annual effective rate of 3%. Once established the rates for specified   
payments do not change during the guarantee period. The guarantee period is that
period for which we credit the applicable rate (one, three, five, seven or ten  
years).                                                                         

There are three scenarios in which you may put money into the fixed account     
options other than the DCA fixed accounts options. In each scenario your money  
may be credited a different rate of interest as follows:                        

 - Initial Rate: Rate credited to amounts allocated to the fixed account
when you purchase your contract.                                  

    - Current Rate: Rate credited to subsequent amounts allocated to the fixed
account.                                                          

    - Renewal Rate: Rate credited to money transferred from a fixed account or
   a Variable Portfolio into a fixed account and to money remaining in a
fixed account after expiration of a guarantee period.             

Each of these rates may differ from one another. Once declared, the applicable  
rate is guaranteed until the corresponding guarantee period expires.            

When a guarantee period ends, you may leave your money in the same fixed        
investment option. You may also reallocate your money to another fixed          
investment option (other than the DCA fixed accounts) or to the Variable        
Portfolios. If you want to reallocate your money to a different fixed account   
option or a Variable Portfolio, you must contact us within 30 days after the end
of the current interest guarantee period and instruct us how to reallocate the  
money. We do not contact you. If we do not hear from you, your money will remain
in the same fixed account option, where it will earn interest at the renewal    
rate then in effect for the fixed account option.                               

The DCA fixed accounts also credit a fixed rate of interest. Interest is        
credited to amounts allocated to the 6-month or                                 

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1-year DCA fixed account while your investment is systematically transferred to 
the Variable Portfolios. The rates applicable to the DCA fixed accounts may     
differ from each other and/or the other fixed account options but will never be 
less than an annual effective rate of 3%. See DOLLAR COST AVERAGING ON PAGE 12  
for more information.                                                           

MARKET VALUE ADJUSTMENT ("MVA")                                                 

NOTE: THE FOLLOWING DISCUSSION APPLIES TO THE 3, 5, 7 AND 10-YEAR FIXED ACCOUNT 
OPTIONS ONLY. THESE OPTIONS ARE NOT AVAILABLE IN ALL STATES. PLEASE CONTACT YOUR
FINANCIAL REPRESENTATIVE FOR MORE INFORMATION.                                  

If you take money out of the multi-year fixed account options before the end of 
the guarantee period, we make an adjustment to your contract. We refer to the   
adjustment as a market value adjustment (the "MVA"). The MVA reflects any       
difference in the interest rate environment between the time you place your     
money in the fixed account option and the time when you withdraw or transfer    
that money. This adjustment can increase or decrease your contract value. You   
have 30 days after the end of each guarantee period to reallocate your funds    
without incurring any MVA.                                                      

We calculate the MVA by doing a comparison between current rates and the rate   
being credited to you in the fixed account option. For the current rate we use a
rate being offered by us for a guarantee period that is equal to the time       
remaining in the guarantee period from which you seek withdrawal. If we are not 
currently offering a guarantee period for that period of time, we determine an  
applicable rate by using a formula to arrive at a number between the interest   
rates currently offered for the two closest periods available.                  

Generally, if interest rates drop between the time you put your money into the  
fixed account options and the time you take it out, we credit a positive        
adjustment to your contract. Conversely, if interest rates increase during the  
same period, we post a negative adjustment to your contract.                    

Where the MVA is negative, we first deduct the adjustment from any money        
remaining in the fixed account option. If there is not enough money in the fixed
account option to meet the negative deduction, we deduct the remainder from your
withdrawal. Where the MVA is positive, we add the adjustment to your withdrawal 
amount.                                                                         

Anchor National does not assess a MVA against withdrawals under the following   
circumstances:                                                                  

- If made within 30 days after the end of a guarantee period;         
- If made to pay contract fees and charges;                           
- To pay a death benefit; and                                         
- Upon annuitization, if occurring on the latest Annuity Date.        

APPENDIX C shows how we calculate the MVA.                                      

TRANSFERS DURING THE ACCUMULATION PHASE                                         

During the Accumulation Phase you may transfer funds between the Variable       
Portfolios and/or the fixed account options. Funds already in your contract     
cannot be transferred into the DCA fixed accounts. You must transfer at least   
$100. If less than $100 will remain in any Variable Portfolio after a transfer, 
that amount must be transferred as well.                                        

You may request transfers of your account value between the Variable Portfolios 
and/or the fixed account options in writing or by telephone. Additionally, you  
may access your account and request transfers between Variable Portfolios and/or
the fixed account options through SunAmerica's website                          
(http://www.sunamerica.com). We currently allow 15 free transfers per contract  
per year. We charge $25 ($10 in Pennsylvania and Texas) for each additional     
transfer in any contract year. Transfers resulting from your participation in   
the DCA program count against your 15 free transfers per contract year. However,
transfers resulting from your participation in the automatic asset rebalancing  
program do not count against your 15 free transfers.                            

We accept transfer requests by telephone unless you tell us not to on your      
contract application. Additionally, you may request transfers over the internet.
When receiving instructions over the telephone or the internet, we follow       
appropriate procedures to provide reasonable assurance that the transactions    
executed are genuine. Thus, we are not responsible for any claim, loss or       
expense from any error resulting from instructions received over the telephone. 
If we fail to follow our procedures, we may be liable for any losses due to     
unauthorized or fraudulent instructions.                                        

We may limit the number of transfers in any contract year or refuse any transfer
request for you or others invested in the contract if we believe that excessive 
trading or a specific transfer request or group transfer requests may have a    
detrimental effect on unit values or the share prices of the underlying Variable
Portfolios.                                                                     

Where permitted by law, we may accept your authorization for a third party to   
make transfers for you subject to our rules. We reserve the right to suspend or 
cancel such acceptance at any time and will notify you accordingly.             
Additionally, we may restrict the investment options available for transfers    
during any period in which such third party acts for you. We notify such third  
party beforehand regarding any restrictions. However, we will not enforce these 
restrictions if we are satisfied that:                                          

    - such third party has been appointed by a court of competent jurisdiction
to act on your behalf; or                                         
    - such third party is a trustee/fiduciary, for you or appointed by you, to
act on your behalf for all your financial affairs.                

We may provide administrative or other support services to independent third    
parties you authorize to make transfers on your behalf. We do not currently     
charge you extra for providing these support services. This includes, but is not
limited to, transfers between investment options in accordance with market      
timing strategies. Such independent third parties may or may not be appointed   
with us for the sale of annuities. However, WE DO NOT ENGAGE ANY THIRD PARTIES  
TO OFFER INVESTMENT ALLOCATION SERVICES OF ANY TYPE. WE TAKE NO RESPONSIBILITY  
FOR THE INVESTMENT ALLOCATION AND                                               

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TRANSFERS TRANSACTED ON YOUR BEHALF BY SUCH THIRD PARTIES OR FOR ANY INVESTMENT 
ALLOCATION RECOMMENDATIONS MADE BY SUCH PARTIES.                                

For information regarding transfers during the Income Phase, SEE INCOME OPTIONS 
ON PAGE 17.                                                                     

We reserve the right to modify, suspend, waive or terminate these transfer      
provisions at any time.                                                         

DOLLAR COST AVERAGING                                                           

The Dollar Cost Averaging ("DCA") program allows you to invest gradually in the 
Variable Portfolios. Under the program you systematically transfer a set dollar 
amount or percentage of portfolio value from one Variable Portfolio or the      
1-year fixed account option (source accounts) to any other Variable Portfolio.  
Transfers may be monthly or quarterly and count against your 15 free transfers  
per contract year. You may change the frequency at any time by notifying us in  
writing. The minimum transfer amount under the DCA program is $100, regardless  
of the source account.                                                          

We also offer the 6-month and 1-year DCA fixed accounts exclusively to          
facilitate this program. If you elected to participate in the Principal Rewards 
Program, the 6-month and 1-year DCA fixed accounts are not available under your 
contract. The DCA fixed accounts only accept new Purchase Payments. You cannot  
transfer money already in your contract into these options. If you allocate new 
Purchase Payments into a DCA fixed account, we transfer all your money allocated
to that account into the Variable Portfolios over the selected 6-month or 1-year
period. You cannot change the option or the frequency of transfers once         
selected.                                                                       

If allocated to the 6-month DCA fixed account, we transfer your money over a    
maximum of 6 monthly transfers. We base the actual number of transfers on the   
total amount allocated to the account. For example, if you allocate $500 to the 
6-month DCA fixed account, we transfer your money over a period of five months, 
so that each payment complies with the $100 per transfer minimum.               

We determine the amount of the transfers from the 1-year DCA fixed account based
on                                                                              

- the total amount of money allocated to the account, and             

- the frequency of transfers selected.                                

For example, let's say you allocate $1,000 to the 1-year DCA fixed account. You 
select monthly transfers. We completely transfer all of your money to the       
selected investment options over a period of ten months.                        

You may terminate your DCA program at any time. If money remains in the DCA     
fixed accounts, we transfer the remaining money to the 1-year fixed account     
option, unless we receive different instructions from you. Transfers resulting  
from a termination of this program do not count towards your 15 free transfers. 

The DCA program is designed to lessen the impact of market fluctuations on your 
investment. However, we cannot ensure that you will make a profit. When you     
elect the DCA program, you are continuously investing in securities regardless  
of fluctuating price levels. You should consider your tolerance for investing   
through periods of fluctuating price levels.                                    

We reserve the right to modify, suspend or terminate this program at any time.  

EXAMPLE:                                                              

Assume that you want to gradually move $750 each quarter from the Cash
    Management Portfolio to the Aggressive Growth Portfolio over six quarters.
 You set up dollar cost averaging and purchase Accumulation Units at the
following values:                                                     

                                                                [Download Table]

-------------------------------------------
                ACCUMULATION      UNITS    
   QUARTER          UNIT        PURCHASED  
-------------------------------------------
                                           
      1            $ 7.50          100     
      2            $ 5.00          150     
      3            $10.00          75      
      4            $ 7.50          100     
      5            $ 5.00          150     
      6            $ 7.50          100     
-------------------------------------------

You paid an average price of only $6.67 per Accumulation Unit over six
   quarters, while the average market price actually was $7.08. By investing
an equal amount of money each month, you automatically buy more       
Accumulation Units when the market price is low and fewer Accumulation
Units when the market price is high. This example is for illustrative 
purposes only.                                                        

ASSET ALLOCATION REBALANCING PROGRAM                                            

Earnings in your contract may cause the percentage of your investment in each   
investment option to differ from your original allocations. The Automatic Asset 
Rebalancing Program addresses this situation. At your election, we periodically 
rebalance your investments in the Variable Portfolios to return your allocations
to their original percentages. Asset rebalancing typically involves shifting a  
portion of your money out of an investment option with a higher return into an  
investment option with a lower return.                                          

At your request, rebalancing occurs on a quarterly, semiannual or annual basis. 
Transfers made as a result of rebalancing do not count against your 15 free     
transfers for the contract year.                                                

We reserve the right to modify, suspend or terminate this program at any time.  

EXAMPLE:                                                              

Assume that you want your initial Purchase Payment split between two  
   Variable Portfolios. You want 50% in the Corporate Bond Portfolio and 50%
  in the Growth Portfolio. Over the next calendar quarter, the bond market
  does very well while the stock market performs poorly. At the end of the
   calendar quarter, the Corporate Bond Portfolio now represents 60% of your
holdings                                                              

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   because it has increased in value and the Growth Portfolio represents 40%
    of your holdings. If you had chosen quarterly rebalancing, on the last day
 of that quarter, we would sell some of your units in the Corporate Bond
   Portfolio to bring its holdings back to 50% and use the money to buy more
units in the Growth Portfolio to increase those holdings to 50%.      

PRINCIPAL ADVANTAGE PROGRAM                                                     

The Principal Advantage Program allows you to invest in one or more Variable    
Portfolios without putting your principal at direct risk. The program           
accomplishes this by allocating your investment strategically between the fixed 
account options and Variable Portfolios. You decide how much you want to invest 
and approximately when you want a return of principal. We calculate how much of 
your Purchase Payment to allocate to the particular fixed account option to     
ensure that it grows to an amount equal to your total principal invested under  
this program. We invest the rest of your principal in the Variable Portfolio(s) 
of your choice.                                                                 

We reserve the right to modify, suspend or terminate this program at any time.  

EXAMPLE:                                                              

     Assume that you want to allocate a portion of your initial Purchase Payment
   of $100,000 to the fixed account option. You want the amount allocated to
the fixed account option to grow to $100,000 in 7 years. If the 7-year
fixed account option is offering a 5% interest rate, we will allocate 
    $71,069 to the 7-year fixed account option to ensure that this amount will
     grow to $100,000 at the end of the 7-year period. The remaining $28,931 may
be allocated among the Variable Portfolios, as determined by you, to  
provide opportunity for greater growth.                               

VOTING RIGHTS                                                                   

Anchor National is the legal owner of the Trusts' shares. However, when a       
Variable Portfolio solicits proxies in conjunction with a vote of shareholders, 
we must obtain your instructions on how to vote those shares. We vote all of the
shares we own in proportion to your instructions. This includes any shares we   
own on our own behalf. Should we determine that we are no longer required to    
comply with these rules, we will vote the shares in our own right.              

SUBSTITUTION                                                                    

If underlying Trust portfolios become unavailable for investment, we may be     
required to substitute shares of another underlying Trust portfolio. We will    
seek prior approval of the SEC and give you notice before substituting shares.  
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ACCESS TO YOUR MONEY
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You can access money in your contract in two ways:                              

- by making a partial or total withdrawal, and/or;                    

    - by receiving income payments during the Income Phase. SEE INCOME OPTIONS
ON PAGE 17.                                                       

Generally, we deduct a withdrawal charge applicable to any total or partial     
withdrawal and a MVA if a partial withdrawal comes from the 3, 5, 7 or 10 year  
fixed account options. If you withdraw your entire contract value, we also      
deduct premium taxes and a contract maintenance fee. SEE EXPENSES ON PAGE 15.   

Your contract provides for a free withdrawal amount each year. A free withdrawal
amount is the portion of your account that we allow you to take out each year   
without being charged a surrender penalty. However, upon a future full surrender
of your contract we will recoup any withdrawal charges which would have been due
if your free withdrawal had not been free. Additionally, if you participate in  
the Principal Rewards Program you will not receive your Deferred Payment        
Enhancement if you fully withdraw a Purchase Payment or your contract value     
prior to the corresponding Deferred Payment Enhancement Date. SEE PRINCIPAL     
REWARDS PROGRAM ON PAGE 8.                                                      

Purchase payments, above and beyond the amount of your free withdrawal amount,  
that are withdrawn prior to the end of the seventh or ninth year if you elect to
participate in the Principal Rewards Program will result in your paying a       
penalty in the form of a surrender charge. The amount of the charge and how it  
applies are discussed more fully below. SEE EXPENSES ON PAGE 15. You should     
consider, before purchasing this contract, the effect this charge will have on  
your investment if you need to withdraw more money than the free withdrawal     
amount. You should fully discuss this decision with your financial              
representative.                                                                 

To determine your free withdrawal amount and your withdrawal charge, we refer to
two special terms. These are penalty free earnings and the total invested       
amount.                                                                         

The penalty-free earnings portion of your contract is simply your account value 
less your total invested amount. The total invested amount is the total of all  
Purchase Payments you have made into the contract less portions of some prior   
withdrawals you made. The portions of prior withdrawals that reduce your total  
invested amount are as follows:                                                 

 - Free withdrawals in any year that were in excess of your penalty-free
       earnings and were based on the part of the total invested amount that was
    no longer subject to withdrawal charges at the time of the withdrawal,
and                                                               

     - Any prior withdrawals (including withdrawal charges on those withdrawals)
of the total invested amount on which you already paid a surrender
penalty.                                                          

When you make a withdrawal, we assume that it is taken from penalty-free        
earnings first, then from the total invested amount on a first-in, first-out    
basis. This means that you can also access your Purchase Payments which are no  
longer subject to a withdrawal charge before those Purchase Payments which are  
still subject to the withdrawal charge.                                         

During the first year after we issue your contract your free withdrawal amount  
is the greater of (1) your penalty-free earnings; and (2) if you are            
participating in the Systematic Withdrawal program, a total of 10% of your total
invested amount. If you are a Washington resident, you may withdraw             

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during the first contract year, the greater of (1); (2); or (3) interest        
earnings from the amounts allocated to the fixed account options, not previously
withdrawn.                                                                      

After the first contract year, you can take out the greater of the following    
amounts each year (1) your penalty-free earnings and any portion of your total  
invested amount no longer subject to withdrawal charges; and (2) 10% of the     
portion of your total invested amount that has been in your contract for at     
least one year. If you are a Washington resident, your maximum free withdrawal  
amount, after the first contract year, is the greater of (1); (2); or (3)       
interest earnings from amounts allocated to the fixed account options, not      
previously withdrawn.                                                           

Although we do not assess a withdrawal charge when you take a 10% penalty-free  
withdrawal, we will proportionally reduce the amount of any corresponding       
Deferred Payment Enhancement.                                                   

We calculate charges due on a total withdrawal on the day after we receive your 
request and your contract. We return to you your contract value less any        
applicable fees and charges.                                                    

Under most circumstances, the partial withdrawal minimum is $1,000. We require  
that the value left in any investment option be at least $100, after the        
withdrawal. You must send a written withdrawal request. Unless you provide us   
with different instructions, partial withdrawals will be made pro rata from each
Variable Portfolio and the fixed account option in which your contract is       
invested.                                                                       

Under certain Qualified plans, access to the money in your contract may be      
restricted. Additionally, withdrawals made prior to age 59 1/2 may result in a  
10% IRS penalty tax. SEE TAXES ON PAGE 19.                                      

We may be required to suspend or postpone the payment of a withdrawal for any   
period of time when: (1) the NYSE is closed (other than a customary weekend and 
holiday closings); (2) trading with the NYSE is restricted; (3) an emergency    
exists such that disposal of or determination of the value of shares of the     
Variable Portfolios is not reasonably practicable; (4) the SEC, by order, so    
permits for the protection of contract owners.                                  

Additionally, we reserve the right to defer payments for a withdrawal from a    
fixed account in option. Such deferrals are limited to no longer than six       
months.                                                                         

SYSTEMATIC WITHDRAWAL PROGRAM                                                   

During the Accumulation Phase, you may elect to receive periodic income payments
under the systematic withdrawal program. Under the program, you may choose to   
take monthly, quarterly, semi-annual or annual payments from your contract.     
Electronic transfer of these funds to your bank account is also available. The  
minimum amount of each withdrawal is $100. If you are an Oregon resident, the   
minimum withdrawal amount is $100 per withdrawal or an amount equal to your free
withdrawal amount, as described on page 10. There must be at least $500         
remaining in your contract at all times. Withdrawals may be taxable and a 10%   
IRS penalty tax may apply if you are under age 59 1/2. There is no additional   
charge for participating in this program, although a withdrawal charge and/or   
MVA may apply.                                                                  

The program is not available to everyone. Please check with our Annuity Service 
Center, which can provide the necessary enrollment forms. We reserve the right  
to modify, suspend or terminate this program at any time.                       

NURSING HOME WAIVER                                                             

If you are confined to a nursing home for 60 days or longer, we may waive the   
withdrawal charge and/or market value adjustment on certain withdrawals prior to
the Annuity Date (not available in Texas). The waiver applies only to           
withdrawals made while you are in a nursing home or within 90 days after you    
leave the nursing home. Your contract prohibits use of this waiver during the   
first 90 days after you purchase your contract. In addition, the confinement    
period for which you seek the waiver must begin after you purchase your         
contract.                                                                       

In order to use this waiver, you must submit with your withdrawal request, the  
following documents: (1) a doctor's note recommending admittance to a nursing   
home; (2) an admittance form which shows the type of facility you entered; and  
(3) a bill from the nursing home which shows that you met the 60 day confinement
requirement.                                                                    

MINIMUM CONTRACT VALUE                                                          

Where permitted by state law, we may terminate your contract if both of the     
following occur: (1) your contract is less than $500 as a result of withdrawals;
and (2) you have not made any Purchase Payments during the past three years. We 
will provide you with sixty days written notice. At the end of the notice       
period, we will distribute the contract's remaining value to you.               

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 DEATH BENEFIT
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If you die during the Accumulation Phase of your contract, we pay a death       
benefit to your Beneficiary. At the time you purchase your contract, you must   
select one of the two death benefits described below. Once selected, you can not
change your death benefit option. You should discuss the available options with 
your financial representative to determine which option is best for you.        

OPTION 1 - PURCHASE PAYMENT ACCUMULATION OPTION                                 

The death benefit is the greater of:                                            

    1. the value of your contract at the time we receive satisfactory proof of
death; or                                                       

2. total Purchase Payments less withdrawals (and any fees or charges  
      applicable to such withdrawals), compounded at a 4% annual growth rate
     until the date of death (3% growth rate if 70 or older at the time of
    contract issue) plus any Purchase Payments less withdrawals recorded
   after the date of death (and any fees or charges applicable to such
withdrawals); or                                                

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     3. the value of your contract on the seventh contract anniversary, plus any
   Purchase Payments and less any withdrawals (and any fees or charges
        applicable to such withdrawals), since the seventh contract anniversary,
     all compounded at a 4% annual growth rate until the date of death (3%
      growth rate if age 70 or older at the time of contract issue) plus any
        Purchase Payments less withdrawals recorded after the date of death (and
any fees or charges applicable to such withdrawals).            

OPTION 2 - MAXIMUM ANNIVERSARY OPTION                                           

The death benefit is the greater of:                                            

    1. the value of your contract at the time we receive satisfactory proof of
death; or                                                       

  2. total Purchase Payments less any withdrawals (and any fees or charges
applicable to such withdrawals); or                             

    3. the maximum anniversary value on any contract anniversary prior to your
      81st birthday. The anniversary value equals the value of your contract
 on a contract anniversary plus any Purchase Payments and less any
     withdrawals (and any fees or charges applicable to such withdrawals),
since that contract anniversary.                                

If you are age 90 or older at the time of death and selected the Option 2 death 
benefit, the death benefit will be equal to the value of your contract at the   
time we receive satisfactory proof of death. Accordingly, you do not get the    
advantage of option 2 if:                                                       

- you are over age 80 at the time of contract issue, or               

- you are 90 or older at the time of your death.                      

We will not pay a Deferred Payment Enhancement on a Purchase Payment if you die 
before the corresponding Deferred Payment Enhancement Date. SEE PRINCIPAL       
REWARDS PROGRAM ON PAGE 8.                                                      

We do not pay the death benefit if you die after you switch to the Income Phase.
However, if you die during the Income Phase, your Beneficiary receives any      
remaining guaranteed income payments in accordance with the income option you   
selected. SEE INCOME OPTIONS ON PAGE 17.                                        

You name your Beneficiary. You may change the Beneficiary at any time, unless   
you previously made an irrevocable Beneficiary designation.                     

We pay the death benefit when we receive satisfactory proof of death. We        
consider the following satisfactory proof of death:                             

1. a certified copy of the death certificate; or                      

    2. a certified copy of a decree of a court of competent jurisdiction as to
the finding of death; or                                        

     3. a written statement by a medical doctor who attended the deceased at the
time of death; or                                               

4. any other proof satisfactory to us.                                

We may require additional proof before we pay the death benefit.                

The death benefit payment must begin immediately upon receipt of all necessary  
documents. In any event, the death benefit must be paid within 5 years of the   
date of death unless the Beneficiary elects to have it payable in the form of an
income option. If the Beneficiary elects an income option, it must be paid over 
the Beneficiary's lifetime or for a period not extending beyond the             
Beneficiary's life expectancy. Payments must begin within one year of your      
death.                                                                          

If the Beneficiary is the spouse of a deceased owner, he or she can elect to    
continue the Contract at the then current value. If the Beneficiary/spouse      
continues the contract, we do not pay a death benefit to him or her.            

If a Beneficiary does not elect a specific form of pay out within 60 days of our
receipt of proof of death, we pay a lump sum death benefit to the Beneficiary.  
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EXPENSES
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There are charges and expenses associated with your contract. These charges and 
expenses reduce your investment return. We will not increase the contract       
maintenance fee or the insurance and withdrawal charges under your contract.    
However, the investment charges under your contract may increase or decrease.   
Some states may require that we charge less than the amounts described below.   

INSURANCE CHARGES                                                               

The amount of this charge is 1.52% annually, of the value of your contract      
invested in the Variable Portfolios. We deduct the charge daily.                

The insurance charge compensates us for the mortality and expense risks and the 
costs of contract distribution assumed by Anchor National.                      

If these charges do not cover all of our expenses, we will pay the difference.  
Likewise, if these charges exceed our expenses, we will keep the difference.    

WITHDRAWAL CHARGES                                                              

The contract provides a free withdrawal amount every year. SEE ACCESS TO YOUR   
MONEY, PAGE 13. If you take money out in excess of the free withdrawal amount,  
and upon a full surrender, you may incur a withdrawal charge.                   

We apply a withdrawal charge against each Purchase Payment you put into the     
contract. After a Purchase Payment has been in the contract for 7 complete      
years, or 9 years if you elected to participate in the Principal Rewards        
Program, no withdrawal charge applies. The withdrawal charge equals a percentage
of the Purchase Payment you take out of the contract. The withdrawal charge     
percentage declines each                                                        

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year a Purchase Payment is in the contract. The two withdrawal charge schedules 
are as follows:                                                                 

WITHDRAWAL CHARGE WITHOUT THE PRINCIPAL REWARDS PROGRAM                         
(SCHEDULE A)                                                                    

                                                        [Enlarge/Download Table]

-----------------------------------------------------------------------------------------
      Year           1        2        3        4        5        6        7        8    
-----------------------------------------------------------------------------------------
                                                                                         
 WITHDRAWAL                                                                              
 CHARGE              7%       6%       5%       4%       3%       2%       1%       0%   
-----------------------------------------------------------------------------------------

WITHDRAWAL CHARGE WITH THE PRINCIPAL REWARDS PROGRAM                            
(SCHEDULE B)                                                                    

                                                        [Enlarge/Download Table]

-----------------------------------------------------------------------------------------------------------
      Year           1        2        3        4        5        6        7        8        9        10   
-----------------------------------------------------------------------------------------------------------
                                                                                                           
 WITHDRAWAL                                                                                                
 CHARGE              9%       9%       8%       7%       6%       5%       4%       3%       2%       0%   
-----------------------------------------------------------------------------------------------------------

When calculating the withdrawal charge, we treat withdrawals as coming first    
from the Purchase Payments that have been in your contract the longest. However,
for tax purposes, your withdrawals are considered earnings first, then Purchase 
Payments.                                                                       

Whenever possible, we deduct the withdrawal charge from the money remaining in  
your contract. If you withdraw all of your contract value, we deduct any        
applicable withdrawal charges from the amount withdrawn.                        

We will not assess a withdrawal charge for money withdrawn to pay a death       
benefit or to pay contract fees or charges. We will not assess a withdrawal     
charge when you switch to the Income Phase, except when you elect to receive    
income payments using the Income Protector feature. If you elect to receive     
income payments using the Income Protector feature, we assess the entire        
withdrawal charge applicable to Purchase Payments remaining in your contract    
when calculating your income benefit base. SEE INCOME OPTIONS ON PAGE 17.       

Withdrawals made prior to age 59 1/2 may result in tax penalties. SEE, TAXES ON 
PAGE 19.                                                                        

INVESTMENT CHARGES                                                              

Charges are deducted from your Variable Portfolios for the advisory and other   
expenses of the Variable Portfolios. THE FEE TABLES LOCATED AT PAGE 4 illustrate
these charges and expenses. For more detailed information on these investment   
charges, refer to the prospectuses for the Trusts, enclosed or attached.        

CONTRACT MAINTENANCE FEE                                                        

During the Accumulation Phase, we subtract a contract maintenance fee from your 
account once per year. This charge compensates us for the cost of contract      
administration. We deduct the $35 contract maintenance fee ($30 in North Dakota)
from your account value on your contract anniversary. If you withdraw your      
entire contract value, we deduct the fee from that withdrawal.                  

If your contract value is $50,000 or more on your contract anniversary date, we 
will waive the charge. This waiver is subject to change without notice.         

TRANSFER FEE                                                                    

We currently permit 15 free transfers between investment options each contract  
year. We charge you $25 for each additional transfer that contract year ($10 in 
Pennsylvania and Texas). SEE INVESTMENT OPTIONS ON PAGE 9.                      

PREMIUM TAX                                                                     

Certain states charge the Company a tax on the premiums you pay into the        
contract. We deduct from your contract these premium tax charges. Currently we  
deduct the charge for premium taxes when you take a full withdrawal or begin the
Income Phase of the contract. In the future, we may assess this deduction at the
time you put Purchase Payment(s) into the contract or upon payment of a death   
benefit.                                                                        

APPENDIX D provides more information about premium taxes.                       

INCOME TAXES                                                                    

We do not currently deduct income taxes from your contract. We reserve the right
to do so in the future.                                                         

REDUCTION OR ELIMINATION OF CHARGES AND EXPENSES, AND ADDITIONAL AMOUNTS        
CREDITED                                                                        

Sometimes sales of the contracts to groups of similarly situated individuals may
lower our administrative and/or sales expenses. We reserve the right to reduce  
or waive certain charges and expenses when this type of sale occurs. In         
addition, we may also credit additional interest to policies sold to such       
groups. We determine which groups are eligible for such treatment. Some of the  
criteria we evaluate to make a determination are: size of the group; amount of  
expected Purchase Payments; relationship existing between us and prospective    
purchaser; nature of the purchase; length of time a group of contracts is       
expected to remain active; purpose of the purchase and whether that purpose     
increases the likelihood that our expenses will be reduced; and/or any other    
factors that we believe indicate that administrative and/or sales expenses may  
be reduced.                                                                     

Anchor National may make such a determination regarding sales to its employees, 
it affiliates' employees and employees of currently contracted broker-dealers;  
its registered representatives and immediate family members of all of those     
described.                                                                      

We reserve the right to change or modify any such determination or the treatment
applied to a particular group, at any time.                                     

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INCOME OPTIONS
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ANNUITY DATE                                                                    

During the Income Phase, we use the money accumulated in your contract to make  
regular income payments to you. You may switch to the Income Phase any time     
after your 2nd contract anniversary. You select the month and year you want     
income payments to begin. The first day of that month is the Annuity Date. You  
may change your Annuity Date, so long as you do so at least seven days before   
the income payments are scheduled to begin. Once you begin receiving income     
payments, you cannot change your income option. Except as indicated under Option
5 below, once you begin receiving income payments, you cannot otherwise access  
your money through a withdrawal or surrender.                                   

If you switch to the Income Phase prior to a Deferred Payment Enhancement Date, 
we will not allocate the corresponding Deferred Payment Enhancement to your     
contract. SEE PRINCIPAL REWARDS PROGRAM ON PAGE 8.                              

Income payments must begin on or before your 90th birthday or on your tenth     
contract anniversary, whichever occurs later. If you do not choose an Annuity   
Date, your income payments will automatically begin on this date. Certain states
may require your income payments to start earlier.                              

If the Annuity Date is past your 85th birthday, your contract could lose its    
status as an annuity under Federal tax laws. This may cause you to incur adverse
tax consequences.                                                               

In addition, most Qualified contracts require you to take minimum distributions 
after you reach age 70 1/2. SEE TAXES ON PAGE 19.                               

INCOME OPTIONS                                                                  

Currently, this Contract offers five income options. If you elect to receive    
income payments but do not select an option, your income payments will be made  
in accordance with option 4 for a period of 10 years. For income payments based 
on joint lives, we pay according to option 3 for a period of 10 years.          

We base our calculation of income payments on the life of the Annuitant and the 
annuity rates set forth in your contract. As the contract owner, you may change 
the Annuitant at any time prior to the Annuity Date. You must notify us if the  
Annuitant dies before the Annuity Date and designate a new Annuitant.           

OPTION 1 - LIFE INCOME ANNUITY                                        

This option provides income payments for the life of the Annuitant. Income      
payments stop when the Annuitant dies.                                          

OPTION 2 - JOINT AND SURVIVOR LIFE ANNUITY                            

This option provides income payments for the life of the Annuitant and for the  
life of another designated person. Upon the death of either person, we will     
continue to make income payments during the lifetime of the survivor. Income    
payments stop when the survivor dies.                                           
   OPTION 3 - JOINT AND SURVIVOR LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED

This option is similar to option 2 above, with an additional guarantee of       
payments for at least 10 years. If the Annuitant and the survivor die before all
of the guaranteed income payments have been made, the remaining payments are    
made to the Beneficiary under your contract.                                    

OPTION 4 - LIFE ANNUITY WITH 10 OR 20 YEARS GUARANTEED                

This option is similar to option 1 above. In addition, this option provides a   
guarantee that income payments will be made for at least 10 or 20 years. You    
select the number of years. If the Annuitant dies before all guaranteed income  
payments are made, the remaining income payments go to the Beneficiary under    
your contract.                                                                  

OPTION 5 - INCOME FOR A SPECIFIED PERIOD                              

This option provides income payments for a guaranteed period ranging from 5 to  
30 years. If the Annuitant dies before all the guaranteed income payments are   
made, the remaining income payments are made to the Beneficiary under your      
contract. Additionally, if variable income payments are elected under this      
option, you (or the Beneficiary under the contract if the Annuitant dies prior  
to all guaranteed income payments being made) may redeem any remaining          
guaranteed variable income payments after the Annuity Date. The amount available
upon such redemption would be the discounted present value of any remaining     
guaranteed variable income payments. If provided for in your contract, any      
applicable withdrawal charge will be deducted from the discounted value as if   
you fully surrendered your contract.                                            

The value of an Annuity Unit, regardless of the option chosen, takes into       
account the Mortality and Expense Risk Charge. Since Option 5 does not contain  
an element of mortality risk, no benefit is derived from this charge.           

Please read the Statement of Additional Information ("SAI") for a more detailed 
discussion of the income options.                                               

FIXED OR VARIABLE INCOME PAYMENTS                                               

You can choose income payments that are fixed, variable or both. If at the date 
when income payments begin you are invested in the Variable Portfolios only,    
your income payments will be variable. If your money is only in fixed accounts  
at that time, your income payments will be fixed in amount. Further, if you are 
invested in both fixed and variable investment options when income payments     
begin, your payments will be fixed and variable. If income payments are fixed,  
Anchor National guarantees the amount of each payment. If the income payments   
are variable the amount is not guaranteed.                                      

INCOME PAYMENTS                                                                 

We make income payments on a monthly, quarterly, semiannual or annual basis. You
instruct us to send you a check or to have the payments directly deposited into 
your bank account. If state                                                     

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law allows, we distribute annuities with a contract value of $5,000 or less in a
lump sum. Also, if the selected income option results in income payments of less
than $50 per payment, we may decrease the frequency of payments, state law      
allowing.                                                                       

If you are invested in the Variable Portfolios after the Annuity date, your     
income payments vary depending on four things:                                  

- for life options, your age when payments begin, and;                

- the value of your contract in the Variable Portfolios on the Annuity
Date, and;                                                        

- the 3.5% assumed investment rate used in the annuity table for the  
contract, and;                                                    

- the performance of the Variable Portfolios in which you are invested
during the time you receive income payments.                      

If you are invested in both the fixed account options and the Variable          
Portfolios after the Annuity Date, the allocation of funds between the fixed and
variable options also impacts the amount of your annuity payments.              

TRANSFERS DURING THE INCOME PHASE                                               

During the Income Phase, one transfer per month is permitted between the        
Variable Portfolios. No other transfers are allowed during the Income Phase.    

DEFERMENT OF PAYMENTS                                                           

We may defer making fixed payments for up to six months, or less if required by 
law. Interest is credited to you during the deferral period.                    

THE INCOME PROTECTOR FEATURE                                                    

The Income Protector feature is a future "safety net" which offers you the      
ability to receive a guaranteed fixed minimum retirement income when you switch 
to the Income Phase. With the Income Protector feature you know the level of    
minimum income that will be available to you upon annuitization, regardless of  
fluctuating market conditions.                                                  

The Income Protector is a standard feature of your contract, if available in    
your state. There is no additional charge associated with this feature.         

Other options were previously available under the Income Protector feature.     
Generally, if you purchased your contract between November 2, 1998 and March 31,
1999 and the Income Protector feature was available in your state at that time, 
the other provisions continue to apply to your contract. Please contact our     
Annuity Service Center for more information.                                    

We reserve the right to modify, suspend or terminate the Income Protector       
feature at any time.                                                            

HOW WE DETERMINE THE AMOUNT OF YOUR MINIMUM GUARANTEED INCOME                   
We base the amount of minimum income available to you if you elect to receive   
income payments using the Income Protector feature upon a calculation we call   
the income benefit base.                                                        

The income benefit base is only a calculation. It does not represent a contract 
value, nor does it guarantee performance of the Variable Portfolios in which you
invest.                                                                         

Your income benefit base increases if you make subsequent Purchase Payments and 
decreases if you withdraw money from your contract. The exact income benefit    
base calculation is equal to (a) plus (b) minus (c) where:                      

   (a) is equal to, for the first year of calculation, your initial Purchase
         Payment, or for each subsequent year of calculation, the income benefit
base on the prior contract anniversary, and;                  

   (b) is equal to the sum of all subsequent Purchase Payments made into the
contract since the last contract anniversary, and;            

   (c) is equal to all withdrawals and applicable fees and charges since the
        last contract anniversary, in an amount proportionate to the amount by
which such withdrawals decreased your contract value.         

ELECTING TO RECEIVE INCOME PAYMENTS                                             

You may elect to begin the Income Phase of your contract using the Income       
Protector feature ONLY within the 30 days after the seventh or later contract   
anniversary.                                                                    

The contract anniversary prior to your election to begin receiving income       
payments is your income benefit date. This is the date as of which we calculate 
your income benefit base to use in determining your guaranteed minimum fixed    
retirement income. Your final income benefit base is equal to (a) minus (b)     
where:                                                                          

  (a) is equal to your income benefit base as of your income benefit date,
and;                                                          

   (b) is equal to any partial withdrawals of contract value and any charges
      applicable to those withdrawals and any withdrawal charges otherwise
       applicable, calculated as if you fully surrender your contract as the
income benefit date, and any applicable premium taxes.        

To arrive at the minimum guaranteed retirement income available to you we apply 
to your final income benefit base to the annuity rates stated in your Income    
Protector endorsement for the income option you select. You then choose if you  
would like to receive that income annually, semi-annually quarterly or monthly  
for the time guaranteed under your selected income option. The income options   

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available when using the income protector feature to receive your retirement    
income are:                                                                     

- Life Annuity with 10 Years Guaranteed, or                           

- Joint and Survivor Life Annuity with 20 Years Guaranteed            

At the time you elect to begin receiving income payments, we will calculate your
income payments using both your income benefit base and your contract value. We 
will use the same income option for each calculation, however, the annuity      
factors used to calculate your income under the Income Protector feature will be
different. You will receive whichever provides a greater stream of income. If   
you elect to receive income payments using the Income Protector feature your    
income payments will be fixed in amount. You are not required to use the Income 
Protector feature to receive income payments.                                   

NOTE TO QUALIFIED CONTRACT HOLDERS                                              

Qualified contracts generally require that you select an income option which    
does not exceed your life expectancy. That restriction, if it applies to you,   
may limit your ability to use the Income Protector feature.                     

You may wish to consult your tax advisor for information concerning your        
particular circumstances.                                                       

HYPOTHETICAL EXAMPLE OF THE OPERATION OF THE INCOME PROTECTOR FEATURE 

This table assumes $100,000 initial investment in a Non-qualified contract with 
no withdrawals, additional Purchase Payments or premium taxes.                  

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------
                                   Minimum annual income if you elect to receive income payments             
     If at issue                                   on contract anniversary . . .                             
    you are . . .               7                     10                    15                    20         
                                                                                                             
-------------------------------------------------------------------------------------------------------------
   Male                       6,108                 6,672                 7,716                 8,832        
   age 60*                                                                                                   
-------------------------------------------------------------------------------------------------------------
   Female                     5,388                 5,880                 6,900                 8,112        
   age 60*                                                                                                   
-------------------------------------------------------------------------------------------------------------
   Joint**                    4,716                 5,028                 5,544                 5,928        
   Male-60                                                                                                   
   Female-60                                                                                                 
-------------------------------------------------------------------------------------------------------------

* Life annuity with 10 years guaranteed                                       
** Joint and survivor life annuity with 20 years guaranteed                     

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 TAXES
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----------------------------------------------------------------                

NOTE: WE PREPARED THE FOLLOWING INFORMATION ON TAXES AS A GENERAL DISCUSSION OF 
THE SUBJECT. IT IS NOT TAX ADVICE. WE CAUTION YOU TO SEEK COMPETENT TAX ADVICE  
ABOUT YOUR OWN CIRCUMSTANCES. WE DO NOT GUARANTEE THE TAX STATUS OF YOUR        
ANNUITY. TAX LAWS CONSTANTLY CHANGE, THEREFORE WE CANNOT GUARANTEE THAT THE     
INFORMATION CONTAINED HEREIN IS COMPLETE AND/OR ACCURATE.                       

ANNUITY CONTRACTS IN GENERAL                                                    

The Internal Revenue Code ("IRC") provides for special rules regarding the tax  
treatment of annuity contracts. Generally, taxes on the earnings in your annuity
contract are deferred until you take the money out. Qualified retirement        
investments automatically provide tax deferral regardless of whether the        
underlying contract is an annuity. Different rules apply depending on how you   
take the money out and whether your contract is Qualified or Non-qualified.     

If you do not purchase your contract under a pension plan, a specially sponsored
employer program or an individual retirement account, your contract is referred 
to as a Non-qualified contract. A Non-qualified contract receives different tax 
treatment than a Qualified contract. In general, your cost basis in a           
Non-qualified contract is equal to the Purchase Payments you put into the       
contract. You have already been taxed on the cost basis in your contract.       

If you purchase your contract under a pension plan, a specially sponsored       
employer program or as an individual retirement account, your contract is       
referred to as a Qualified contract. Examples of qualified plans are: Individual
Retirement Accounts ("IRAs"), Roth IRAs, Tax-Sheltered Annuities (referred to as
403(b) contracts), H.R. 10 Plans (referred to as Keogh Plans) and pension and   
profit sharing plans, including 401(k) plans. Typically you have not paid any   
tax on the Purchase Payments used to buy your contract and therefore, you have  
no cost basis in your contract.                                                 

TAX TREATMENT OF DISTRIBUTIONS -                                                
NON-QUALIFIED CONTRACTS                                                         

If you make a withdrawal from a Non-qualified contract, the IRC treats such a   
withdrawal as first coming from the                                             

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earnings and then as coming from your Purchase Payments. For income payments,   
any portion of each payment that is considered a return of your Purchase Payment
will not be taxed. Withdrawn earnings are treated as income to you and are      
taxable. The IRC provides for a 10% penalty tax on any earnings that are        
withdrawn other than in conjunction with the following circumstances: (1) after 
reaching age 59 1/2; (2) when paid to your Beneficiary after you die; (3) after 
you become disabled (as defined in the IRC); (4) when paid in a series of       
substantially equal installments made for your life or for the joint lives of   
you and you Beneficiary; (5) under an immediate annuity; or (6) which come from 
Purchase Payments made prior to August 14, 1982.                                

TAX TREATMENT OF DISTRIBUTIONS - QUALIFIED CONTRACTS                            

Generally, you have not paid any taxes on the Purchase Payments used to buy a   
Qualified contract. Any amount of money you take out as a withdrawal or as      
income payments is taxable income. The IRC further provides for a 10% penalty   
tax on any withdrawal or income payment paid to you other than in conjunction   
with the following circumstances: (1) after reaching age 59 1/2; (2) when paid  
to your Beneficiary after you die; (3) after you become disabled (as defined in 
the IRC); (4) in a series of substantially equal installments made for your life
or for the joint lives of you and your Beneficiary; (5) to the extent such      
withdrawals do not exceed limitations set by the IRC for amounts paid during the
taxable year for medical care; (6) to fund higher education expenses (as defined
in IRC); (7) to fund certain first-time home purchase expenses; and, except in  
the case of an IRA; (8) when you separate from service after attaining age 55;  
and (9) when paid to an alternate payee pursuant to a qualified domestic        
relations order.                                                                

The IRC limits the withdrawal of Purchase Payments from certain Tax-Sheltered   
Annuities. Withdrawals can only be made when an owner: (1) reaches age 59 1/2;  
(2) leaves his or her job; (3) dies; (4) becomes disabled (as defined in the    
IRC); or (5) experiences a hardship (as defined in the IRC). In the case of     
hardship, the owner can only withdraw Purchase Payments.                        

MINIMUM DISTRIBUTIONS                                                           

Generally, the IRS requires that you begin taking annual distributions from     
qualified annuity contracts by April 1 of the calendar year following the later 
of (1) the calendar year in which you attain age 70 1/2 or (2) the calendar year
in which you retire.                                                            

We currently waive surrender charges and MVA on withdrawals taken to meet       
minimum distribution requirements. Current operational practice is to provide a 
free withdrawal of the greater of the contract's maximum penalty free amount or 
the required minimum distribution amount for a particular contract (but not     
both).                                                                          

Failure to satisfy the minimum distribution requirements may result in a tax    
penalty. You should consult your tax advisor for more information.              

DIVERSIFICATION                                                                 

The IRC imposes certain diversification requirements on the underlying          
investments for a variable annuity. We believe that each underlying Variable    
Portfolios' management monitors the Variable Portfolios so as to comply with    
these requirements. To be treated as a variable annuity for tax purposes, the   
underlying investments must meet these requirements.                            

The diversification regulations do not provide guidance as to the circumstances 
under which you, because of the degree of control you exercise over the         
underlying investments, and not Anchor National, would be considered the owner  
of the shares of the Variable Portfolios. It is unknown to what extent owners   
are permitted to select investments, to make transfers among Variable Portfolios
or the number and type of Variable Portfolios owners may select from. If any    
guidance is provided which is considered a new position, then the guidance would
generally be applied prospectively. However, if such guidance is considered not 
to be a new position, it may be applied retroactively. This would mean you, as  
the owner of the contract, could be treated as the owner of the underlying      
Variable Portfolios. Due to the uncertainty in this area, we reserve the right  
to modify the contract in an attempt to maintain favorable tax treatment.       

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 PERFORMANCE
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----------------------------------------------------------------                

We advertise the Cash Management Portfolio's yield and effective yield. In      
addition, the other Variable Portfolios advertise total return, gross yield and 
yield-to-maturity. These figures represent past performance of the Variable     
Portfolios. These performance numbers do not indicate future results.           

When we advertise performance for periods prior to the date the contracts were  
first issued, we derive the figures from the performance of the corresponding   
portfolios for the Trusts, if available. We modify these numbers to reflect     
charges and expenses as if the contract was in existence during the period      
stated in the advertisement. Figures calculated in this manner do not represent 
actual historic performance of the particular Variable Portfolio.               

Consult the SAI for more detailed information regarding the calculation of      
performance data. The performance of each Variable Portfolio may also be        
measured against unmanaged market indices. The indices we use include but are   
not limited to the Dow Jones Industrial Average, the Standard & Poor's 500, the 
Russell 1000 Growth Index, the Morgan Stanley Capital International Europe,     
Australia and Far East Index ("EAFE") and the Morgan Stanley Capital            
International World Index. We may compare the Variable Portfolios'              

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performance to that of other variable annuities with similar objectives and     
policies as reported by independent ranking agencies such as Morningstar, Inc., 
Lipper Analytical Services, Inc. or Variable Annuity Research & Data Service    
("VARDS").                                                                      

Anchor National may also advertise the rating and other information assigned to 
it by independent industry ratings organizations. Some of those organizations   
are A.M. Best Company ("A.M. Best"), Moody's Investor's Service ("Moody's"),    
Standard & Poor's Insurance Rating Services ("S&P"), and Duff & Phelps. A.M.    
Best's and Moody's ratings reflect their current opinion of our financial       
strength and performance in comparison to others in the life and health         
insurance industry. S&P's and Duff & Phelps' ratings measure the ability of an  
insurance company to meet its obligations under insurance policies it issues.   
These two ratings do not measure the insurer's ability to meet non-policy       
obligations. Ratings in general do not relate to the performance of the Variable
Portfolios.                                                                     

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 OTHER INFORMATION
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----------------------------------------------------------------                

ANCHOR NATIONAL                                                                 

Anchor National is a stock life insurance company originally organized under the
laws of the state of California in April 1965. On January 1, 1996, Anchor       
National redomesticated under the laws of the state of Arizona.                 

Anchor National and its affiliates, SunAmerica Life Insurance Company, First    
SunAmerica Life Insurance Company, CalAmerica Life Insurance Company, SunAmerica
National Life Insurance Company, SunAmerica Asset Management Corp., Resources   
Trust Company, and the SunAmerica Financial Network, Inc. broker-dealers,       
specialize in retirement savings and investment products and services. Business 
focuses include fixed and variable annuities, mutual funds, broker-dealer       
services and trust administration services.                                     

THE SEPARATE ACCOUNT                                                            

Anchor National established Variable Separate Account ("separate account"),     
under Arizona law on January 1, 1996 when it assumed the separate account,      
originally established under California law on June 25, 1981. The separate      
account is registered with the SEC as a unit investment trust under the         
Investment Company Act of 1940, as amended.                                     

Anchor National owns the assets in the separate account. However, the assets in 
the separate account are not chargeable with liabilities arising out of any     
other business conducted by Anchor National. Income gains and losses (realized  
and unrealized) resulting from assets in the separate account are credited to or
charged against the separate account without regard to other income gains or    
losses of Anchor National.                                                      

THE GENERAL ACCOUNT                                                             

Money allocated to the fixed account options goes into Anchor National's general
account. The general account consists of all of Anchor National's assets other  
than assets attributable to a separate account. All of the assets in the general
account are chargeable with the claims of any Anchor National contract holders  
as well as all of its creditors. The general account funds are invested as      
permitted under state insurance laws.                                           

DISTRIBUTION OF THE CONTRACT                                                    

Registered representatives of broker-dealers sell the contract. We pay          
commissions to these representatives for the sale of the contracts. We do not   
expect the total commissions to exceed 7% of your Purchase Payments. We may also
pay a bonus to representatives for contracts which stay active for a particular 
period of time, in addition to standard commissions. We do not deduct           
commissions paid to registered representatives directly from your Purchase      
Payments.                                                                       

From time to time, we may pay or allow additional promotional incentives in the 
form of cash or other compensation. We reserve the right to offer these         
additional incentives only to certain broker-dealers that sell or are expected  
to sell, certain minimum amounts of the contract, or other contracts offered by 
us. Promotional incentives may change at any time.                              

SunAmerica Capital Services, Inc., 733 Third Avenue, 4th Floor, New York, New   
York 10017 distributes the contracts. SunAmerica Capital Services, an affiliate 
of Anchor National, is registered as a broker-dealer under the Exchange Act of  
1934 and is a member of the National Association of Securities Dealers, Inc. No 
underwriting fees are paid in connection with the distribution of the contracts.

ADMINISTRATION                                                                  

We are responsible for the administrative servicing of your contract. Please    
contact our Annuity Service Center                                              
at 1-800-445-SUN2, if you have any comment, question or service request.        

We send out transaction confirmations and quarterly statements. It is your      
responsibility to review these documents carefully and notify us of any         
inaccuracies immediately. We investigate all inquiries. To the extent that we   
believe we made an error, we retroactively adjust your contract, provided you   
notify us within 30 days of receiving the transaction confirmation or quarterly 
statement. Any other adjustments we deem warranted are made as of the time we   
receive notice of the error.                                                    

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YEAR 2000                                                                       

We rely significantly on computer systems and applications in our daily         
operations. Many of our systems are not presently year 2000 compliant, which    
means that because they have historically used only two digits to identify the  
year in a date, they will fail to distinguish dates in the "2000s" from dates in
the "1900s." Anchor National's business, financial condition and results of     
operations could be materially and adversely affected by the failure of our     
systems and applications (and those operated by third parties interfacing with  
our systems and applications) to properly operate or manage these dates.        

Anchor National has a coordinated plan to repair or replace these noncompliant  
systems and to obtain similar assurances from third parties interfacing with our
systems and applications. In fiscal 1997, the Company's parent recorded a $15.0 
million provision for estimated programming costs to make necessary repairs of  
certain specific noncompliant systems of which $6.2 million was allocated to    
Anchor National. In addition, the Company's parent is making expenditures which 
it expects will ultimately total $12.3 million to replace certain other         
noncompliant systems. Of these expenditures, approximately $5.0 million will be 
allocated to Anchor National. Total expenditures relating to the replacement of 
noncompliant systems will be capitalized as software costs and will be amortized
over future periods. Both phases of the project are progressing according to    
plan and were substantially completed by the end of calendar 1998. Testing of   
both the repaired and replacement systems is expected to be substantially       
completed by July 31, 1999. However, Anchor National will continue to test all  
of its computer systems and applications through 1999 to ensure continued       
compliance.                                                                     

In addition, we distributed a year 2000 questionnaire to our significant        
suppliers, distributors, financial institutions, lessors and others we do       
business with to evaluate their year 2000 compliance plans and state of         
readiness and to determine how our systems and applications may be affected by  
their failure to solve their own year 2000 issues. To date, however, we have    
only received preliminary feedback from such parties and have not independently 
confirmed any information received from other parties with respect to the year  
2000 issues. Therefore, we cannot assure that such other parties will complete  
their year 2000 conversions in a timely fashion or will not suffer a year 2000  
business disruption that may adversely affect our financial condition and       
results of operations.                                                          

Because we expect to complete our year 2000 conversion prior to any potential   
disruption to our business, we have not developed a comprehensive year 2000     
contingency plan. Anchor National closely monitors the progression of its plan  
for compliance, and if necessary, would devote additional resources to assure   
the timely completion of our year 2000 plan. If we determine that our business  
is at material risk of disruption due to the year 2000 issue or anticipate that 
we will not complete our year 2000 conversion in a timely fashion, we will work 
to enhance our contingency plans.                                               

The above statements are forward-looking. The costs of our year 2000 conversion,
the date which we have set to complete such conversion and the possible risks   
associated with the year 2000 issue are based on our current estimates and are  
subject to various uncertainties that could cause the actual results to differ  
materially from our expectations. Such uncertainties include, among others, our 
success in identifying systems and applications that are not year 2000          
compliant, the nature and amount of programming required to upgrade or replace  
each of the affected systems and applications, the availability of qualified    
personnel, consultants and other resources, and the success of the year 2000    
conversion efforts of others.                                                   

LEGAL PROCEEDINGS                                                               

There are no pending legal proceedings affecting the separate account. Anchor   
National and its subsidiaries engage in various kinds of routine litigation. In 
management's opinion, these matters are not of material importance to their     
respective total assets nor are they material with respect to the separate      
account.                                                                        

OWNERSHIP                                                                       

The PolarisII Variable Annuity is a Flexible Payment Group Deferred Annuity     
contract. We issue a group contract to a contract holder for the benefit of the 
participants in the group. As a participant in the group, you will receive a    
certificate which evidences your ownership. As used in this prospectus, the term
contract refers to your certificate. In some states, a Flexible Payment         
Individual Modified Guaranteed and Variable Deferred Annuity contract is        
available instead. Such a contract is identical to the contract described in    
this prospectus, with the exception that we issue it directly to the owner.     

CUSTODIAN                                                                       

State Street Bank and Trust Company, 255 Franklin Street, Boston, Massachusetts 
02110, serves as the custodian of the assets of the separate account. Anchor    
National pays State Street Bank for services provided, based on a schedule of   
fees.                                                                           

INDEPENDENT ACCOUNTANTS                                                         

The financial statements of Anchor National as of September 30, 1998 and 1997   
and for each of the three years in the period ended September 30, 1998          
incorporated by reference in this prospectus have been so included in reliance  
on the report of PricewaterhouseCoopers LLP, independent accountants, given on  
the authority of said firm as experts in auditing and accounting.               

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REGISTRATION STATEMENT                                                          

A registration statement has been filed with the SEC under the Securities Act of
1933 relating to the contract. This prospectus does not contain all the         
information in the registration statement as permitted by SEC regulations. The  
omitted information can be obtained from the SEC's principal office in          
Washington, D.C., upon payment of a prescribed fee.                             

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TABLE OF CONTENTS OF
STATEMENT OF ADDITIONAL INFORMATION 
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----------------------------------------------------------------                

Additional information concerning the operations of the separate account is     
contained in a Statement of Additional Information ("SAI"), which is available  
without charge upon written request addressed to us at our Annuity Service      
Center, P.O. Box 54299, Los Angeles, California 90054-0299 or by calling (800)  
445-SUN2. The contents of the SAI are tabulated below.                          

                                                                [Download Table]
                                                    
Separate Account..............................     3
General Account...............................     3
Performance Data..............................     4
Income Payments...............................    10
Annuity Unit Values...........................    11
Taxes.........................................    14
Distribution of Contracts.....................    17
Financial Statements..........................    18

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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX A - CONDENSED FINANCIAL INFORMATION
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                                              INCEPTION TO      FISCAL YEAR
                       PORTFOLIOS                               11/30/97         11/30/98  
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
                                                                                           
  Capital Appreciation (Inception Date - 6/3/97)                                           
         Beginning AUV..................................       $   18.52         $   21.26 
         Ending AUV.....................................       $   21.26         $   23.72 
         Ending Number of AUs...........................       1,392,262         7,356,862 
-------------------------------------------------------------------------------------------
  Growth (Inception Date - 6/3/97)                                                         
         Beginning AUV..................................       $   17.93         $   20.31 
         Ending AUV.....................................       $   20.31         $   24.41 
         Ending Number of AUs...........................         789,274         3,678,108 
-------------------------------------------------------------------------------------------
  Natural Resources (Inception Date - 6/4/97)                                              
         Beginning AUV..................................       $   12.39         $   11.14 
         Ending AUV.....................................       $   11.14         $    9.30 
         Ending Number of AUs...........................         195,946           641,479 
-------------------------------------------------------------------------------------------
  Government and Quality Bond (Inception Date - 6/11/97)                                   
         Beginning AUV..................................       $   11.99         $   12.65 
         Ending AUV.....................................       $   12.65         $   13.66 
         Ending Number of AUs...........................         395,258         5,697,571 
-------------------------------------------------------------------------------------------
  Emerging Markets (Inception Date - 6/5/97)                                               
         Beginning AUV..................................       $   10.14         $    7.97 
         Ending AUV.....................................       $    7.97         $    6.14 
         Ending Number of AUs...........................         663,212         2,574,316 
-------------------------------------------------------------------------------------------
  International Diversified Equities (Inception Date - 6/4/97)                             
         Beginning AUV..................................       $   12.04         $   11.62 
         Ending AUV.....................................       $   11.62         $   13.53 
         Ending Number of AUs...........................       1,040,812         4,519,545 
-------------------------------------------------------------------------------------------
  Global Equities (Inception Date - 6/3/97)                                                
         Beginning AUV..................................       $   16.54         $   16.90 
         Ending AUV.....................................       $   16.90         $   19.21 
         Ending Number of AUs...........................         600,294         2,566,912 
-------------------------------------------------------------------------------------------
  International Growth and Income (Inception Date - 6/4/97)                                
         Beginning AUV..................................       $    9.97         $   10.33 
         Ending AUV.....................................       $   10.33         $   11.16 
         Ending Number of AUs...........................       1,310,126         6,738,263 
-------------------------------------------------------------------------------------------
  Aggressive Growth (Inception Date - 6/9/97)                                              
         Beginning AUV..................................       $   10.03         $   11.51 
         Ending AUV.....................................       $   11.51         $   11.86 
         Ending Number of AUs...........................         821,105         2,794,187 
-------------------------------------------------------------------------------------------
  MFS Mid-Cap Growth (Inception Date - 4/1/99)                                             
         Beginning AUV..................................       $      --         $      -- 
         Ending AUV.....................................       $      --         $      -- 
         Ending Number of AUs...........................              --                -- 
-------------------------------------------------------------------------------------------
  Real Estate (Inception Date - 6/4/97)                                                    
         Beginning AUV..................................       $    9.98         $   11.44 
         Ending AUV.....................................       $   11.44         $    9.80 
         Ending Number of AUs...........................         887,321         3,336,767 
-------------------------------------------------------------------------------------------
  Putnam Growth (Inception Date - 6/3/97)                                                  
         Beginning AUV..................................       $   15.80         $   18.47 
         Ending AUV.....................................       $   18.47         $   22.29 
         Ending Number of AUs...........................         831,178         4,949,624 
-------------------------------------------------------------------------------------------
  MFS Growth and Income* (Inception Date - 6/4/97)                                         
         Beginning AUV..................................       $   15.82         $   17.63 
         Ending AUV.....................................       $   17.63         $   20.46 
         Ending Number of AUs...........................         191,101           694,076 
-------------------------------------------------------------------------------------------
  Alliance Growth (Inception Date - 6/2/97)                                                
         Beginning AUV..................................       $   21.81         $   24.51 
         Ending AUV.....................................       $   24.51         $   32.81 
         Ending Number of AUs...........................       2,092,044        12,001,651 
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------

             * Formerly named Growth/Phoenix and managed by Phoenix Investment
Counsel, Inc.                                                                   
AUV - Accumulation Unit Value                       
AU - Accumulation Units                             

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                                                        [Enlarge/Download Table]

                                                              INCEPTION TO      FISCAL YEAR
                       PORTFOLIOS                               11/30/97         11/30/98  
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------
                                                                                           
  "Dogs of Wall Street" (Inception Date - 4/1/98)                                          
         Beginning AUV..................................       $      --         $   10.00 
         Ending AUV.....................................       $      --         $    9.71 
         Ending Number of AUs...........................              --         4,324,225 
-------------------------------------------------------------------------------------------
  Venture Value (Inception Date - 6/2/97)                                                  
         Beginning AUV..................................       $   18.63         $   21.30 
         Ending AUV.....................................       $   21.30         $   23.36 
         Ending Number of AUs...........................       4,281,879        20,734,371 
-------------------------------------------------------------------------------------------
  Federated Value (Inception Date - 6/4/97)                                                
         Beginning AUV..................................       $   12.14         $   13.62 
         Ending AUV.....................................       $   13.62         $   15.86 
         Ending Number of AUs...........................         736,333         3,783,248 
-------------------------------------------------------------------------------------------
  Growth-Income (Inception Date - 6/3/97)                                                  
         Beginning AUV..................................       $   18.84         $   21.41 
         Ending AUV.....................................       $   21.41         $   25.71 
         Ending Number of AUs...........................       1,949,292         9,786,202 
-------------------------------------------------------------------------------------------
  Utility (Inception Date - 6/6/97)                                                        
         Beginning AUV..................................       $   11.41         $   12.74 
         Ending AUV.....................................       $   12.74         $   14.56 
         Ending Number of AUs...........................         177,618         1,807,529 
-------------------------------------------------------------------------------------------
  Asset Allocation (Inception Date - 6/3/97)                                               
         Beginning AUV..................................       $   16.59         $   17.98 
         Ending AUV.....................................       $   17.98         $   18.22 
         Ending Number of AUs...........................       1,498,681         8,996,522 
-------------------------------------------------------------------------------------------
  MFS Total Return** (Inception Date - 6/10/97)                                            
         Beginning AUV..................................       $   14.44         $   15.45 
         Ending AUV.....................................       $   15.45         $   17.28 
         Ending Number of AUs...........................         218,391         1,492,175 
-------------------------------------------------------------------------------------------
  SunAmerica Balanced (Inception Date - 6/5/97)                                            
         Beginning AUV..................................       $   11.84         $   13.22 
         Ending AUV.....................................       $   13.22         $   15.60 
         Ending Number of AUs...........................         363,136         3,543,245 
-------------------------------------------------------------------------------------------
  Worldwide High Income (Inception Date - 6/5/97)                                          
         Beginning AUV..................................       $   15.57         $   15.98 
         Ending AUV.....................................       $   15.98         $   13.57 
         Ending Number of AUs...........................         596,308         2,430,509 
-------------------------------------------------------------------------------------------
  High-Yield Bond (Inception Date - 6/9/97)                                                
         Beginning AUV..................................       $   13.63         $   14.66 
         Ending AUV.....................................       $   14.66         $   14.25 
         Ending Number of AUs...........................         758,856         5,006,115 
-------------------------------------------------------------------------------------------
  Corporate Bond (Inception Date - 6/9/97)                                                 
         Beginning AUV..................................       $   11.83         $   12.54 
         Ending AUV.....................................       $   12.54         $   13.15 
         Ending Number of AUs...........................         328,300         3,633,064 
-------------------------------------------------------------------------------------------
  Global Bond (Inception Date - 6/11/97)                                                   
         Beginning AUV..................................       $   12.41         $   13.08 
         Ending AUV.....................................       $   13.08         $   14.40 
         Ending Number of AUs...........................         183,563         1,342,157 
-------------------------------------------------------------------------------------------
  Cash Management (Inception Date - 6/5/97)                                                
         Beginning AUV..................................       $   11.24         $   11.43 
         Ending AUV.....................................       $   11.43         $   11.83 
         Ending Number of AUs...........................       1,514,290         5,488,046 
-------------------------------------------------------------------------------------------
-------------------------------------------------------------------------------------------

     ** Formerly named Balanced/Phoenix and managed by Phoenix
Investment Counsel, Inc.                                                        

AUV - Accumulation Unit Value                       
AU - Accumulation Units                             

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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX B - PRINCIPAL REWARDS PROGRAM
DEFERRED PAYMENT ENHANCEMENT EXAMPLES 
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

If you elect to participate in the Principal Rewards Program at contract issue, 
we contribute 2.00% of each Purchase Payment to your contract for each Purchase 
Payment we receive. Any applicable Deferred Payment Enhancement is allocated to 
your contract on the corresponding Deferred Payment Enhancement Date and, if    
declared by the Company, is a percentage of your REMAINING Purchase Payment on  
the Deferred Payment Enhancement Date. Deferred Purchase Payment Enhancements   
are reduced proportionately by partial withdrawals of that Purchase Payment     
prior to the Deferred Payment Enhancement Date.                                 

The examples that follow assume an initial Purchase Payment of $50,000 and that 
the Deferred Payment Enhancement is 2.00%. For purposes of the example, the     
Deferred Payment Enhancement Date is the 9th anniversary of the Purchase        
Payment.                                                                        

EXAMPLE 1 - NO WITHDRAWALS ARE MADE                                             

The Initial Payment Enhancement allocated to your contract is $1,000.00 (2.00%  
of $50,000.00).                                                                 

On your 9th contract anniversary, the Deferred Payment Enhancement Date, your   
Deferred Payment Enhancement of $1,000.00 (2.00% of your remaining Purchase     
Payment or $50,000.00) will be allocated to your contract.                      

EXAMPLE 2 - WITHDRAWAL MADE PRIOR TO DEFERRED PAYMENT ENHANCEMENT DATE          

As in Example 1, your Initial Payment Enhancement is $1,000.00.                 

This example also assumes the following:                                        

1. Your contract value on your 5th contract anniversary is $75,000.00.

     2. You request a withdrawal of $30,000.00 on your 5th contract anniversary.

3. No subsequent Purchase Payments have been made.                    

4. No prior withdrawals have been taken.                              

5. Funds are not allocated to any of the MVA Fixed Accounts.          

On your 5th contract anniversary, your penalty-free earnings in the contract are
$25,000.00 ($75,000.00 contract value less your $50,000.00 investment in the    
contract). Therefore, you are withdrawing $5,000.00 of your initial Purchase    
Payment. Your contract value will also be reduced by a $250.00 withdrawal charge
on the $5,000.00 Purchase Payment (5.00% of $5,000.00). Your gross withdrawal is
$30,250.00 of which $5,250 constitutes part of your initial Purchase Payment.   

The withdrawal of $5,250.00 of your $50,000.00 Purchase Payment is a withdrawal 
of 10.50% of your Purchase Payment. Therefore, only 89.50%, or $44,750.00, of   
your initial Purchase Payment remains in your contract.                         

On your 9th contract anniversary, the Deferred Payment Enhancement Date,        
assuming no other transactions occur affecting the Purchase Payment, we allocate
your Deferred Payment Enhancement of $895.00 (2.00% of your remaining Purchase  
Payment, $44,750.00) to your contract.                                          

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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX C - MARKET VALUE ADJUSTMENT ("MVA")
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

The MVA reflects the impact that changing interest rates have on the value of   
money invested at a fixed interest rate. The longer the period of time remaining
in the term you initially agreed to leave your money in the fixed account       
option, the greater the impact of changing interest rates. The impact of the MVA
can be either positive or negative, and is computed by multiplying the amount   
withdrawn, transferred or switched to the Income Phase by the following factor: 

              (N/12)
[(1+I/(1+J+0.005)]       - 1

The MVA formula may differ in certain states
where:                                                                      

   I is the interest rate you are earning on the money invested in the
fixed account option;                                           

      J is the interest rate then currently available for the period of time
       equal to the number of years remaining in the term you initially agreed
to leave your money in the fixed account option; and            

  N is the number of full months remaining in the term you initially
agreed to leave your money in the fixed account option.         

EXAMPLES OF THE MVA                                                             

The examples below assume the following:                                        

     (1) You made an initial Purchase Payment of $10,000 and allocated it to the
10-year fixed account option at a rate of 5%;                 

     (2) You make a partial withdrawal of $4,000 when 1 year (12 months) remains
     in the 10-year term you initially agreed to leave your money in the
fixed account option (N=12); and                              

     (3) You have not made any other transfers, additional Purchase Payments, or
withdrawals.                                                  

No withdrawal charges are reflected because your Purchase Payment has been in   
the contract for nine full years. If a withdrawal charge applies, it is deducted
before the MVA. The MVA is assessed on the amount withdrawn less any withdrawal 
charges.                                                                        

POSITIVE ADJUSTMENT                                                             

Assume that on the date of withdrawal, the interest rate in effect for a new    
Purchase Payments in the 1-year fixed account option is 4%.                     

  (N/12)
The MVA factor is = [(1+I/(1+J+0.005)]       - 1                                
         (12/12)
= [(1.05)/(1.04+0.005)]        - 1          
(1)                 
= (1.004785)    - 1                         
= 1.004785 - 1                              
= + 0.004785                                

The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:                                                                            
$4,000 x (+0.004785) = +$19.14

$19.14 represents the MVA that would be added to your withdrawal.               

NEGATIVE ADJUSTMENT                                                             

Assume that on the date of withdrawal, the interest rate in effect for new      
Purchase Payments in the 1-year fixed account option is 6%.                     

    (N/12)
The MVA factor is = [(1+I)/(1+J+0.005)]       - 1                               
         (12/12)
= [(1.05)/(1.06+0.005)]        - 1          
(1)                 
= (0.985915)    - 1                         
= 0.985915 - 1                              
= - 0.014085                                

The requested withdrawal amount is multiplied by the MVA factor to determine the
MVA:                                                                            
$4,000 X (-0.014085) = -$56.34

$56.34 represents the MVA that will be deducted from the money remaining in the 
10-year fixed account option.                                                   

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--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
APPENDIX D - PREMIUM TAXES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

Premium taxes vary according to the state and are subject to change without     
notice. In many states, there is no tax at all. Listed below are the current    
premium tax rates in those states that assess a premium tax. For current        
information, you should consult your tax adviser.                               

                                                        [Enlarge/Download Table]

                                                              QUALIFIED    NON-QUALIFIED
                           STATE                              CONTRACT       CONTRACT   
                                                                                        
========================================================================================
California                                                        .50%          2.35%   
----------------------------------------------------------------------------------------
Kentucky                                                            2%             2%   
----------------------------------------------------------------------------------------
Maine                                                               0%             2%   
----------------------------------------------------------------------------------------
Nevada                                                              0%           3.5%   
----------------------------------------------------------------------------------------
South Dakota                                                        0%          1.25%   
----------------------------------------------------------------------------------------
West Virginia                                                       1%             1%   
----------------------------------------------------------------------------------------
Wyoming                                                             0%             1%   
----------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------

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

Please forward a copy (without charge) of the Polaris(II) Variable Annuity
Statement of Additional Information to:                                   

(Please print or type and fill in all information.) 

        ------------------------------------------------------------------------
Name                                                            

        ------------------------------------------------------------------------
Address                                                         

        ------------------------------------------------------------------------
City/State/Zip                                                  

                                                        [Enlarge/Download Table]
                                                                                             

Date:  ------------------------------------  Signed:  ---------------------------------------

Return to: Anchor National Life Insurance Company, Annuity Service Center,
P.O. Box 52499, Los Angeles, California 90054-0299                        
--------------------------------------------------------------------------------

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Dates Referenced Herein and Documents Incorporated by Reference

		Referenced-On Page
This ‘424B3’ Filing	Date	First	Last	Other Filings

	3/31/00	13		10-Q, 424B3
	7/31/99	27
Filed on:	6/28/99	1	6
	3/31/99	7	23	10-Q
	3/12/99	7		8-K
	12/31/98	7		10-Q, 424B3, 8-K
	11/30/98	9		POS AM
	11/2/98	23		POS AM
	9/30/98	7	27	10-K405
	1/4/98	9
	9/30/97	27		10-K
	1/1/96	26
				List all Filings

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Filing Submission 0000950148-99-001508 – Alternative Formats (Word / Rich Text, HTML, Plain Text, et al.)

Sunamerica Annuity & Life Assurance Co – ‘424B3’ on 6/28/99

On: Monday, 6/28/99 · Accession #: 950148-99-1508 · File #: 333-18333

Previous ‘424B3’: ‘424B3’ on 6/4/99 · Next: ‘424B3’ on 7/19/99 · Latest: ‘424B3’ on 1/13/05

Prospectus — Rule 424(b)(3)Filing Table of Contents

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Dates Referenced Herein and Documents Incorporated by Reference

Prospectus — Rule 424(b)(3)
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