Riversource of New York Variable Annuity Account 1, et al. – ‘485BPOS’ on 4/27/06

On:  Thursday, 4/27/06, at 5:27pm ET   ·   Effective:  5/1/06   ·   Accession #:  1047469-6-5849   ·   File #s:  333-00041, 811-07475

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Document/Exhibit                   Description                      Pages   Size 

 1: 485BPOS     Post-Effective Amendment                              82    497K 
 3: EX-99.10    Miscellaneous Exhibit                                  1      5K 
 4: EX-99.13.10  Miscellaneous Exhibit                                 2±    11K 
 2: EX-99.9     Miscellaneous Exhibit                                  1      7K 

485BPOS   —   Post-Effective Amendment
Document Table of Contents

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SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form N-4

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933                         

     Post-Effective Amendment No.    12   (File No. 333-00041)               /X/
-------     

and/or

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940                 

     Amendment No.   13    (File No. 811-07475)                              /X/
-------                                   

(Check appropriate box or boxes)

ACL VARIABLE ANNUITY ACCOUNT 1
--------------------------------------------------------------------------------
(Exact Name of Registrant)

 American Centurion Life Assurance Company
--------------------------------------------------------------------------------
 (Name of Depositor)

20 Madison Avenue Extension, Albany NY                                    12203 
--------------------------------------------------------------------------------
(Address of Depositor's Principal Executive Offices)                  (Zip Code)

Depositor's Telephone Number, including Area Code                 (612) 671-3678
--------------------------------------------------------------------------------

Mary Ellyn Minenko, 50607 Ameriprise Financial Center, Minneapolis, MN 55474
--------------------------------------------------------------------------------
 (Name and Address of Agent for Service)

It is proposed that this filing will become effective (check appropriate box)   
/ / immediately upon filing pursuant to paragraph (b)                       

/X/ on May 1, 2006 pursuant to paragraph (b)                                

/ / 60 days after filing pursuant to paragraph (a)(1)                       
/ / on (date) pursuant to paragraph (a)(1)                                  

If appropriate check the following box:                                         
/ / this post-effective amendment designates a new effective date for a     
previously filed post-effective amendment.                          

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PROSPECTUS                                                                      

MAY 1, 2006                                                                     

PRIVILEGED ASSETS(R) SELECT ANNUITY                                             

GROUP FLEXIBLE PREMIUM DEFERRED COMBINATION FIXED/VARIABLE ANNUITY              

ISSUED BY:   AMERICAN CENTURION LIFE ASSURANCE COMPANY (AMERICAN CENTURION LIFE)
20 Madison Avenue Extension                           
Albany, NY 12203                                      
Telephone: (518) 452-4150 (Albany area)               
(800) 633-3563                                        

ACL VARIABLE ANNUITY ACCOUNT 1                        

This prospectus contains information that you should know before investing.     
Prospectuses are also available for:                                            

-  AIM Variable Insurance Funds                                                 

-  American Century Variable Portfolios, Inc.                                   

-  Credit Suisse Trust                                                          

-  Janus Aspen Series: Institutional Shares                                     

-  RiverSource(SM) Variable Portfolio Funds (previously American Express(R)     
Variable Portfolio Funds)                                                 

Please read the prospectuses carefully and keep them for future reference.      

THE SECURITIES AND EXCHANGE COMMISSION (SEC) HAS NOT APPROVED OR DISAPPROVED    
THESE SECURITIES OR PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.                           

AN INVESTMENT IN THIS CERTIFICATE IS NOT A DEPOSIT OF A BANK OR FINANCIAL       
INSTITUTION AND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE   
CORPORATION (FDIC) OR ANY OTHER GOVERNMENT AGENCY. AN INVESTMENT IN THIS        
CERTIFICATE INVOLVES INVESTMENT RISK INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.  

A Statement of Additional Information (SAI), dated the same date as this        
prospectus, is incorporated by reference into this prospectus. It is filed with 
the SEC, and is available without charge by contacting American Centurion Life  
at the telephone number and address listed above. The table of contents of the  
SAI is on the last page of this prospectus. The SEC maintains an Internet site. 
This prospectus, the SAI and other information about the product are available  
on the EDGAR Database on the SEC's Internet site at (http://www.sec.gov).       

Variable annuities are insurance products that are complex investment vehicles. 
Before you invest, be sure to ask about the variable annuity's features,        
benefits, risks and fees, and whether the variable annuity is appropriate for   
you, based upon your financial situation and objectives.                        

This prospectus provides a general description of the certificate. Your actual  
certificate and any riders or endorsements are the controlling documents.       
American Centurion Life has not authorized any person to give any information or
to make any representation regarding the certificate other than those contained 
in this prospectus or the fund prospectuses. Do not rely on any such information
or representations.                                                             

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1 ACL PRIVILEGED ASSETS SELECT ANNUITY -- PROSPECTUS                            

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TABLE OF CONTENTS                                                               

                                                                [Download Table]
                                                                    
KEY TERMS                                                         3 
THE CERTIFICATE IN BRIEF                                          4 
EXPENSE SUMMARY                                                   5 
CONDENSED FINANCIAL INFORMATION (UNAUDITED)                       8 
FINANCIAL STATEMENTS                                              9 
THE VARIABLE ACCOUNT AND THE FUNDS                               10 
THE FIXED ACCOUNT                                                14 
BUYING YOUR CERTIFICATE                                          14 
CHARGES                                                          16 
VALUING YOUR INVESTMENT                                          17 
MAKING THE MOST OF YOUR CERTIFICATE                              18 
SURRENDERS                                                       21 
CHANGING OWNERSHIP                                               22 
BENEFITS IN CASE OF DEATH                                        22 
THE ANNUITY PAYOUT PERIOD                                        23 
TAXES                                                            24 
VOTING RIGHTS                                                    26 
SUBSTITUTION OF INVESTMENTS                                      26 
ABOUT THE SERVICE PROVIDERS                                      27 
TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION     27 

CORPORATE CONSOLIDATION                                                         

Later this year, American Centurion Life plans to merge into one of its         
affiliates, IDS Life Insurance Company of New York. This merger will help       
simplify overall corporate structure because these two life insurance companies 
will be consolidated into one. We currently expect this consolidation to occur  
at the end of 2006, subject to certain regulatory and other approvals. At the   
time of the consolidation, we plan to change the name of the surviving life     
insurance company to RiverSource Life Insurance Co. of New York. This           
consolidation and renaming will not have any adverse effect on the benefits     
under your certificate.                                                         

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2 ACL PRIVILEGED ASSETS SELECT ANNUITY -- PROSPECTUS                            

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KEY TERMS                                                                       

THESE TERMS CAN HELP YOU UNDERSTAND DETAILS ABOUT YOUR CERTIFICATE.             

ACCUMULATION UNIT: A measure of the value of each subaccount before annuity     
payouts begin.                                                                  

AMERICAN CENTURION LIFE: In this prospectus, "we," "us," "our" and "American    
Centurion Life" refer to American Centurion Life Assurance Company.             

ANNUITANT: The person on whose life or life expectancy the annuity payouts are  
based.                                                                          

ANNUITY PAYOUTS: A fixed amount paid at regular intervals under one of several  
plans.                                                                          

ANNUITY START DATE: The date when annuity payouts are scheduled to begin. This  
date is established when you start your certificate. You can change it in the   
future.                                                                         

BENEFICIARY: The person you designate to receive benefits in case of the owner's
or annuitant's death while the certificate is in force.                         

CERTIFICATE VALUE: The total value of your certificate before we deduct any     
applicable charges.                                                             

CERTIFICATE YEAR: A period of 12 months, starting on the effective date of your 
certificate and on each anniversary of the effective date.                      

CLOSE OF BUSINESS: The time the New York Stock Exchange (NYSE) closes (4 p.m.   
Eastern time unless the NYSE closes earlier).                                   

CODE: The Internal Revenue Code of 1986, as amended.                            

FIXED ACCOUNT: An account to which you may allocate purchase payments. Amounts  
you allocate to this account earn interest at rates that we declare             
periodically.                                                                   

FUNDS: Investment options under your certificate. You may allocate your purchase
payments into subaccounts investing in shares of any or all of these funds.     

OWNER (YOU, YOUR): The person who controls the certificate (decides on          
investment allocations, transfers, payout options, etc.). Usually, but not      
always, the owner is also the annuitant. The owner is responsible for taxes,    
regardless of whether he or she receives the certificate's benefits.            

QUALIFIED ANNUITY: A certificate that you purchase to fund one of the following 
tax-deferred retirement plans that is subject to applicable federal law and any 
rules of the plan itself:                                                       

-  Individual Retirement Annuities (IRAs) under Section 408(b) of the Code,     
including rollovers from qualified plans                                  

-  Simplified Employee Pension IRA (SEP) plans under Section 408(k) of the Code 

A qualified annuity will not provide any necessary or additional tax deferral if
it is used to fund a retirement plan that is already tax deferred.              

All other certificates are considered NONQUALIFIED ANNUITIES.                   

SURRENDER VALUE: The amount you are entitled to receive if you make a full      
surrender from your certificate. It is the certificate value minus any          
applicable charges.                                                             

VALUATION DATE: Any normal business day, Monday through Friday, on which the    
NYSE is open, up to the close of business. At the close of business, the next   
valuation date begins. We calculate the accumulation unit value of each         
subaccount on each valuation date. If we receive your purchase payment or any   
transaction request (such as a transfer or surrender request) at our home office
before the close of business, we will process your payment or transaction using 
the accumulation unit value we calculate on the valuation date we received your 
payment or transaction request. On the other hand, if we receive your purchase  
payment or transaction request at our home office at or after the close of      
business, we will process your payment or transaction using the accumulation    
unit value we calculate on the next valuation date. If you make a transaction   
request by telephone (including by fax), you must have completed your           
transaction by the close of business in order for us to process it using the    
accumulation unit value we calculate on that valuation date. If you were not    
able to complete your transaction before the close of business for any reason,  
including telephone service interruptions or delays due to high call volume, we 
will process your transaction using the accumulation unit value we calculate on 
the next valuation date.                                                        

VARIABLE ACCOUNT: Consists of separate subaccounts to which you may allocate    
purchase payments; each subaccount invests in shares of one fund. The value of  
your investment in each subaccount changes with the performance of the          
particular fund.                                                                

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3 ACL PRIVILEGED ASSETS SELECT ANNUITY -- PROSPECTUS                            

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THE CERTIFICATE IN BRIEF                                                        

PURPOSE: The purpose of the certificate is to allow you to accumulate money for 
retirement. You do this by making one or more purchase payments. You may        
allocate your purchase payments to the fixed account and/or subaccounts under   
the certificate. These accounts, in turn, may earn returns that increase the    
value of the certificate. Beginning at a specified time in the future called the
retirement date, the certificate provides lifetime or other forms of payout of  
your certificate value on a fixed basis.                                        

It may not be advantageous for you to purchase this certificate in exchange for,
or in addition to, an existing annuity or life insurance policy. Generally, you 
can exchange one annuity for another in a "tax-free" exchange under Section 1035
of the Code. You also generally can exchange a life insurance policy for an     
annuity. However, before making an exchange, you should compare the contract and
certificate carefully because the features and benefits may be different. Fees  
and charges may be higher or lower on your old contract than on this            
certificate. You may have to pay a surrender charge when you exchange out of    
your old contract. If the exchange does not qualify for Section 1035 treatment, 
you also may have to pay federal income tax on the exchange. You should not     
exchange your old contract for this certificate, or buy this certificate in     
addition to your old contract, unless you determine it is in your best interest.

TAX-DEFERRED RETIREMENT PLANS: Most annuities have a tax-deferred feature. So do
many retirement plans under the Code. As a result, when you use a qualified     
annuity to fund a retirement plan that is tax-deferred, your certificate will   
not provide any necessary or additional tax deferral for that retirement plan. A
qualified annuity has features other than tax deferral that may help you reach  
your retirement goals. In addition, the Code subjects retirement plans including
IRAs to required withdrawals triggered at a certain age. These mandatory        
withdrawals are called required minimum distributions (RMDs). RMDs may reduce   
the value of certain death benefits (see "Taxes -- Qualified Annuities --       
Required minimum distributions"). You should consult your tax advisor before you
purchase the certificate as a qualified annuity for an explanation of the       
potential tax implications to you.                                              

FREE LOOK PERIOD: You may return your certificate for a full refund within 30   
days after you receive it. You must invest the portion of the purchase payment  
you allocate to the variable account in the RiverSource Variable Portfolio -    
Cash Management Fund subaccount for the period we estimate or calculate your    
free look right to be in existence (generally 35 days after the certificate     
issue date.)                                                                    

If you choose not to keep your certificate, return it to us within the free look
period. We will cancel the certificate and we promptly will refund the greater  
of (1) your purchase payment without investment earnings, or (2) your           
certificate value plus any amount we deducted from your payment prior to        
allocation to the variable account or the fixed account.                        

ACCOUNTS: Currently, you may allocate your purchase payments among any or all   
of:                                                                             

-  the subaccounts, each of which invests in a fund with a particular investment
objective. The value of each subaccount varies with the performance of the
particular fund in which it invests. We cannot guarantee that the value at
the retirement date will equal or exceed the total purchase payments you  
allocate to the subaccounts. (p. 10)                                      

-  the fixed account, which earns interest at a rate that we adjust             
periodically. (p. 14)                                                     

BUYING YOUR CERTIFICATE: You can purchase a certificate by submitting a complete
application. Applications are subject to acceptance at our home office. You may 
buy a nonqualified annuity or a qualified annuity. You must make an initial     
lump-sum purchase payment. You have the option of making additional purchase    
payments in the future.                                                         

PURCHASE PAYMENTS:                                                              

MINIMUM ALLOWABLE PURCHASE PAYMENTS:                                            

If paying by installments under a scheduled payment plan:                 

$100 per month                                                      

$50 biweekly                                                        

If paying by any other method:                                            

$2,000 initial payment for nonqualified annuities                   

$1,000 initial payment for qualified annuities                      

$100 for any additional payments                                    

Installments must total at least $1,000 in the first year.                

MAXIMUM ALLOWABLE PURCHASE PAYMENTS:                                            

For the first year:                                                       

$1,000,000 for issue ages through 75                                

$500,000 for issue ages 76 to 85                                    

For each subsequent year:                                                 

$50,000                                                             

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4 ACL PRIVILEGED ASSETS SELECT ANNUITY -- PROSPECTUS                            

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TRANSFERS: Subject to certain restrictions, you currently may redistribute your 
certificate value among the accounts until annuity payouts begin. You may       
establish automated transfers among the accounts. (p. 18)                       

SURRENDERS: You may surrender all or part of your certificate value at any time 
before the annuity start date. You may also establish systematic surrenders.    
There is no surrender charge. Surrenders may be taxable (and include a 10% IRS  
penalty if made prior to your reaching age 59 1/2) and may have other tax       
consequences; also, certain restrictions apply. (p. 21)                         

CHANGING OWNERSHIP: You may change ownership of a nonqualified annuity by       
written instruction, but this may have federal income tax consequences.         
Restrictions apply to changing ownership of a qualified annuity. (p. 22)        

BENEFITS IN CASE OF DEATH: If you or the annuitant die before annuity payouts   
begin, we will pay the beneficiary the greater of the certificate value or total
purchase payments made less partial surrenders. (p. 22)                         

ANNUITY PAYOUTS: You can apply your certificate value to an annuity payout plan 
that begins on the annuity start date. You may choose from a variety of plans to
make sure that payouts continue as long as you like. If you purchased a         
qualified annuity, the payout schedule must meet IRS requirements. Payouts will 
be made on a fixed basis. (p. 23)                                               

TAXES: Generally, income earned on your certificate value grows tax deferred    
until you surrender it or begin to receive payouts. (Under certain              
circumstances, IRS penalty taxes may apply.) The tax treatment of qualified and 
nonqualified annuities differs. Even if you direct payouts to someone else, you 
will be taxed on the income if you are the owner. (p. 24)                       

LIMITATIONS ON USE OF CERTIFICATE: If mandated by applicable law, including, but
not limited to, federal anti-money laundering laws, we may be required to reject
a purchase payment. We may also be required to block an owner's access to       
certificate values or to satisfy other statutory obligations. Under these       
circumstances we may refuse to implement requests for transfers, surrenders or  
death benefits until instructions are received from the appropriate governmental
authority or a court of competent jurisdiction.                                 

EXPENSE SUMMARY                                                                 

THE FOLLOWING TABLES DESCRIBE THE FEES AND EXPENSES YOU WILL PAY WHEN BUYING,   
OWNING AND SURRENDERING THE CERTIFICATE. THE FIRST TABLE DESCRIBES THE FEES AND 
EXPENSES YOU WILL PAY AT THE TIME THAT YOU BUY THE CERTIFICATE OR SURRENDER THE 
CERTIFICATE.                                                                    

CERTIFICATE OWNER TRANSACTION EXPENSES                                          

                                                                [Download Table]
                                                                                
SURRENDER CHARGE                                                             0% 

THE NEXT TABLES DESCRIBE THE FEES AND EXPENSES THAT YOU WILL PAY PERIODICALLY   
DURING THE TIME THAT YOU OWN THE CERTIFICATE, NOT INCLUDING FUND FEES AND       
EXPENSES.                                                                       

ANNUAL CERTIFICATE ADMINISTRATIVE CHARGE                                        

                                                                [Download Table]
   
$30

(We currently waive this charge when purchase payments less partial surrenders  
is at least $10,000.)                                                           

ANNUAL VARIABLE ACCOUNT EXPENSES                                                
(As a percentage of average daily subaccount value)                             

                                                                [Download Table]
                                                                                
MORTALITY AND EXPENSE RISK FEE                                               1% 

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ANNUAL OPERATING EXPENSES OF THE FUNDS                                          

THE NEXT TWO TABLES DESCRIBE THE OPERATING EXPENSES OF THE FUNDS THAT YOU MAY   
PAY PERIODICALLY DURING THE TIME THAT YOU OWN THE CERTIFICATE. THE FIRST TABLE  
SHOWS THE MINIMUM AND MAXIMUM TOTAL OPERATING EXPENSES CHARGED BY THE FUNDS FOR 
THE LAST FISCAL YEAR. THE SECOND TABLE SHOWS THE FEES AND EXPENSES CHARGED BY   
EACH FUND FOR THE LAST FISCAL YEAR. MORE DETAIL CONCERNING EACH FUND'S FEES AND 
EXPENSES IS CONTAINED IN THE PROSPECTUS FOR EACH FUND.                          

MINIMUM AND MAXIMUM TOTAL ANNUAL OPERATING EXPENSES FOR THE FUNDS(a)            

(Including management fee, distribution and/or service (12b-1) fees and other   
expenses)                                                                       

                                                                [Download Table]

                                                                 MINIMUM  MAXIMUM
                                                                                 
Total expenses before fee waivers and/or expense reimbursements   0.61%    1.59% 

(a)  Each fund deducts management fees and other expenses from fund assets. Fund
  assets include amounts you allocate to a particular fund. Funds may also
   charge 12b-1 fees that are used to finance any activity that is primarily
    intended to result in the sale of fund shares. Because 12b-1 fees are paid
 out of fund assets on an on-going basis, you may pay more if you select
  subaccounts investing in funds that have adopted 12b-1 plans than if you
  select subaccounts investing in funds that have not adopted 12b-1 plans.
The fund or the fund's affiliates may pay us and/or our affiliates for
   promoting and supporting the offer, sale and servicing of fund shares. In
    addition, the fund's distributor and/or investment adviser, transfer agent
   or their affiliates may pay us and/or our affiliates for various services
 we or our affiliates provide. The amount of these payments will vary by
   fund and may be significant. See "The Variable Account and the Funds" for
 additional information, including potential conflicts of interest these
  payments may create. For a more complete description of each fund's fees
  and expenses and important disclosure regarding payments the fund and/or
its affiliates make, please review the fund's prospectus and SAI.     

TOTAL ANNUAL OPERATING EXPENSES FOR EACH FUND                                   
(Before fee waivers and/or expense reimbursements, if applicable, as a          
percentage of average daily net assets)                                         

                                                        [Enlarge/Download Table]

                                                                          MANAGEMENT  12b-1     OTHER     GROSS TOTAL      
                                                                             FEES      FEES   EXPENSES  ANNUAL EXPENSES    
                                                                                                                           
AIM V.I. Core Equity Fund, Series I Shares                                   0.60%       --%    0.27%   0.87%(1),(2)       
American Century VP Capital Appreciation, Class I                            1.00        --       --    1.00(3)            
American Century VP Value, Class I                                           0.93        --       --    0.93(3)            
Credit Suisse Trust - Global Small Cap Portfolio                             1.25        --     0.34    1.59(4)            
Janus Aspen Series Large Cap Growth Portfolio: Institutional Shares          0.64        --     0.02    0.66(5)            
Janus Aspen Series Worldwide Growth Portfolio: Institutional Shares          0.60        --     0.01    0.61(5)            
RiverSource(SM) Variable Portfolio - Balanced Fund                           0.54      0.13     0.14    0.81(6),(7),(8)    
(previously AXP(R) Variable Portfolio - Managed Fund)                                                                      
RiverSource(SM) Variable Portfolio - Cash Management Fund                    0.33      0.13     0.15    0.61(6),(7)        
(previously AXP(R) Variable Portfolio - Cash Management Fund)                                                              
RiverSource(SM) Variable Portfolio - Diversified Bond Fund                   0.47      0.13     0.17    0.77(6),(7)        
(previously AXP(R) Variable Portfolio - Diversified Bond Fund)                                                             
RiverSource(SM) Variable Portfolio - International Opportunity Fund          0.72      0.13     0.20    1.05(6),(7),(8)    
(previously AXP(R) Variable Portfolio - Threadneedle International Fund)                                                   
RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                   0.56      0.13     0.14    0.83(6),(7),(8)    
(previously AXP(R) Variable Portfolio - Large Cap Equity Fund)                                                             
RiverSource(SM) Variable Portfolio - Mid Cap Growth Fund                     0.63      0.13     0.17    0.93(6),(7),(8),(9)

(1)  Figures shown in the table are for the year ended Dec. 31, 2005 and are    
    expressed as a percentage of the Fund's average daily net assets. There is
  no guarantee that actual expenses will be the same as those shown in the
   table. The Fund's advisor has contractually agreed to waive advisory fees
 and/or reimburse expenses of Series I shares to the extent necessary to
     limit total operating expenses of Series I shares to 1.30% of average daily
  nets assets. Effective upon the closing of the reorganization which will
   occur on or about May 1, 2006, the advisor for AIM V.I. Core Equity Fund,
Series I Shares has contractually agreed to waive advisory fees and/or
reimburse expenses to the extent necessary to limit total operating   
expenses of Series I shares to 0.91% of average daily net assets. In  
determining the advisor's obligation to waive advisory fees and/or    
    reimburse expenses, the following expenses are not taken into account, and
    could cause the total operating expenses to exceed the limit stated above:
(i) interest; (ii) taxes; (iii) dividend expense on short sales; (iv) 
     extraordinary items; (v) expenses related to a merger or reorganizations as
   approved by the Fund's Board of Trustees; and (vi) expenses that the Fund
has incurred but did not actually pay because of an expense offset    
     arrangement. Currently, the only expense offset arrangements from which the
 Fund may benefit are in the form of credits that the Fund receives from
     banks where the Fund or its transfer agent has deposit accounts in which it
holds uninvested cash. Those credits are used to pay certain expenses 
     incurred by the Fund. The expense limitation is in effect through April 30,
2007.                                                                 
(2)  As a result of a reorganization of another Fund into the Fund, which will  
occur on or about May 1, 2006 for AIM V.I. Core Equity Fund, Series I 
 Shares, the "Gross total annual expenses" have been restated to reflect
such reorganization.                                                  
(3)  The Fund's expense figures are based on actual expenses for the fiscal year
ended Dec. 31, 2005.                                                  
(4)  Fee waivers and/or expense reimbursements reduced expenses for the         
Portfolio, without which performance would be lower. Waivers and/or   
reimbursements may be discontinued at any time. After fee waivers and 
  expense reimbursements net expenses would be 1.40% Credit Suisse Trust -
Global Small Cap Portfolio.                                           
(5)  Janus Capital has contractually agreed to waive certain Portfolios' total  
  operating expenses (excluding brokerage commissions, interest, taxes and
extraordinary expenses) to certain limits until May 1, 2007.          
(6)  The Fund's expense figures are based on actual expenses for the fiscal year
ended Aug. 31, 2005, adjusted to reflect current fees.                
(7)  The Fund has adopted a plan under Rule 12b-1 of the Investment Company Act 
  of 1940. The Fund pays IDS Life Insurance Company an annual fee of up to
   0.125% of average daily net assets as payment for distributing its shares
 and providing shareholder services. Because this fee is paid out of the
  Fund's assets on an on-going basis, over time this fee will increase the
  cost of your investment and may cost you more than paying other types of
sales charges.                                                        

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(8)  Management fees include the impact of a performance incentive adjustment   
     fee that decreased the management fee by 0.04% for RiverSource(SM) Variable
Portfolio - International Opportunity Fund, 0.02% for RiverSource(SM) 
  Variable Portfolio - Large Cap Equity Fund and 0.07% for RiverSource(SM)
Variable Portfolio - Mid Cap Growth Fund. Management fees include the 
impact of a performance incentive adjustment fee that increased the   
   management fee by 0.03% for RiverSource(SM) Variable Portfolio - Balanced
Fund.                                                                 
(9)  RiverSource Investments and its affiliates have contractually agreed to    
waive certain fees and expenses until Aug. 31, 2006, unless sooner    
  terminated at the discretion of the Fund's Board. Any amount waived will
   not be reimbursed by the Fund. Under this agreement, net expenses, before
giving effect to any performance incentive adjustment, will not exceed
1.00% for RiverSource(SM) Variable Portfolio - Mid Cap Growth Fund.   

EXAMPLES                                                                        

THESE EXAMPLES ARE INTENDED TO HELP YOU COMPARE THE COST OF INVESTING IN THE    
CERTIFICATE WITH THE COST OF INVESTING IN OTHER VARIABLE ANNUITY CONTRACTS.     
THESE COSTS INCLUDE YOUR TRANSACTION EXPENSES, CERTIFICATE ADMINISTRATIVE       
CHARGES*, VARIABLE ACCOUNT ANNUAL EXPENSES AND FUND FEES AND EXPENSES.          

THESE EXAMPLES ASSUME THAT YOU INVEST $10,000 IN THE CERTIFICATE FOR THE TIME   
PERIODS INDICATED. THESE EXAMPLES ALSO ASSUME THAT YOUR INVESTMENT HAS A 5%     
RETURN EACH YEAR.                                                               

MAXIMUM EXPENSES. This example assumes the maximum fees and expenses of any of  
the funds for the last fiscal year. Although your actual costs may be higher or 
lower, based on this assumption your costs would be:                            

                                                                [Download Table]

 1 YEAR    3 YEARS     5 YEARS      10 YEARS
                                            
$275.73    $845.87    $1,441.87    $3,052.84

MINIMUM EXPENSES. This example assumes the minimum fees and expenses of any of  
the funds for the last fiscal year. Although your actual costs may be higher or 
lower, based on this assumption your costs would be:                            

                                                                [Download Table]

 1 YEAR    3 YEARS     5 YEARS     10 YEARS
                                           
$175.28    $543.08     $935.17    $2,032.36

* In these examples, the $30 administrative charge is approximated as a .100%   
charge. This percentage was determined by dividing the total amount of the  
 administrative charges collected during the year that are attributable to the
certificate by the total average net assets that are attributable to the    
certificate.                                                                

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CONDENSED FINANCIAL INFORMATION                                                 
(UNAUDITED)                                                                     

The following tables give per-unit information about the financial history of   
each subaccount. The date in which operations commenced in each price level is  
noted in parentheses.                                                           

We have not provided this information for subaccounts that were not available   
under your contract as of Dec. 31, 2005.                                        

VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE       
ACCOUNT.                                                                        

                                                        [Enlarge/Download Table]

YEAR ENDED DEC. 31,                                  2005    2004    2003    2002    2001    2000    1999    1998    1997    1996 
                                                                                                                                  
AIM V.I. CORE STOCK FUND, SERIES I SHARES* (12/10/1996)                                                                           
Accumulation unit value at beginning of period       $1.54   $1.49   $1.23   $1.54   $1.70   $1.64   $1.44   $1.26   $1.00   $1.00
Accumulation unit value at end of period             $1.58   $1.54   $1.49   $1.23   $1.54   $1.70   $1.64   $1.44   $1.26   $1.00
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          42      39      68      86     126     140     194     221     155      --

*AIM V.I. CORE STOCK FUND, SERIES I SHARES MERGED INTO AIM V.I. CORE EQUITY FUND, SERIES I SHARES ON APRIL 28, 2006.              

AMERICAN CENTURY VP CAPITAL APPRECIATION, CLASS I (12/10/1996)                                                                    
Accumulation unit value at beginning of period       $1.12   $1.05   $0.88   $1.13   $1.58   $1.46   $0.90   $0.93   $0.97   $1.00
Accumulation unit value at end of period             $1.35   $1.12   $1.05   $0.88   $1.13   $1.58   $1.46   $0.90   $0.93   $0.97
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          59      51      57      52      67      85      49      51      42      --
AMERICAN CENTURY VP VALUE, CLASS I (12/10/1996)                                                                                   
Accumulation unit value at beginning of period       $2.11   $1.86   $1.46   $1.69   $1.51   $1.29   $1.31   $1.27   $1.01   $1.00
Accumulation unit value at end of period             $2.19   $2.11   $1.86   $1.46   $1.69   $1.51   $1.29   $1.31   $1.27   $1.01
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          80      79     134     160      94      26      53      50      33      --
CREDIT SUISSE TRUST - GLOBAL SMALL CAP PORTFOLIO (12/10/1996)                                                                     
Accumulation unit value at beginning of period       $1.18   $1.01   $0.69   $1.06   $1.50   $1.87   $1.16   $1.10   $0.98   $1.00
Accumulation unit value at end of period             $1.36   $1.18   $1.01   $0.69   $1.06   $1.50   $1.87   $1.16   $1.10   $0.98
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          77      66      67      76      74      68      67      75      65      --
JANUS ASPEN SERIES LARGE CAP GROWTH PORTFOLIO: INSTITUTIONAL SHARES (12/10/1996)                                                  
Accumulation unit value at beginning of period       $1.44   $1.39   $1.06   $1.46   $1.96   $2.32   $1.63   $1.21   $1.00   $1.00
Accumulation unit value at end of period             $1.48   $1.44   $1.39   $1.06   $1.46   $1.96   $2.32   $1.63   $1.21   $1.00
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                         319     345     365     391     492     594     472     352     230      --
JANUS ASPEN SERIES WORLDWIDE GROWTH PORTFOLIO: INSTITUTIONAL SHARES (12/10/1996)                                                  
Accumulation unit value at beginning of period       $1.53   $1.47   $1.20   $1.63   $2.12   $2.54   $1.56   $1.22   $1.00   $1.00
Accumulation unit value at end of period             $1.60   $1.53   $1.47   $1.20   $1.63   $2.12   $2.54   $1.56   $1.22   $1.00
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                         195     209     250     286     355     390     462     339     252      --
RIVERSOURCE(SM) VARIABLE PORTFOLIO - BALANCED FUND (12/9/1996)                                                                    
(PREVIOUSLY AXP(R) VARIABLE PORTFOLIO - MANAGED FUND)                                                                             
Accumulation unit value at beginning of period       $1.46   $1.34   $1.13   $1.31   $1.48   $1.53   $1.34   $1.17   $0.99   $1.00
Accumulation unit value at end of period             $1.50   $1.46   $1.34   $1.13   $1.31   $1.48   $1.53   $1.34   $1.17   $0.99
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          42      48      52      57      58      64      69      63      44      --
RIVERSOURCE(SM) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND* (12/9/1996)                                                            
(PREVIOUSLY AXP(R) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND)                                                                     
Accumulation unit value at beginning of period       $1.20   $1.20   $1.21   $1.21   $1.18   $1.12   $1.08   $1.04   $1.00   $1.00
Accumulation unit value at end of period             $1.22   $1.20   $1.20   $1.21   $1.21   $1.18   $1.12   $1.08   $1.04   $1.00
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                           7       9       9       9       9       8      46     170     189      --

*THE 7-DAY SIMPLE AND COMPOUND YIELDS FOR RIVERSOURCE(SM) VARIABLE PORTFOLIO - CASH MANAGEMENT FUND AT DEC. 31, 2005 WERE 2.53%   
AND 2.56%, RESPECTIVELY.                                                                                                          

RIVERSOURCE(SM) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND (12/9/1996)                                                            
(PREVIOUSLY AXP(R) VARIABLE PORTFOLIO - DIVERSIFIED BOND FUND)                                                                    
Accumulation unit value at beginning of period       $1.34   $1.29   $1.25   $1.19   $1.12   $1.07   $1.07   $1.06   $0.99   $1.00
Accumulation unit value at end of period             $1.35   $1.34   $1.29   $1.25   $1.19   $1.12   $1.07   $1.07   $1.06   $0.99
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          28      21      53      33      30      14      19      21      15      --

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VARIABLE ACCOUNT CHARGES OF 1.00% OF THE DAILY NET ASSETS OF THE VARIABLE       
ACCOUNT. (CONTINUED)                                                            

                                                        [Enlarge/Download Table]

YEAR ENDED DEC. 31,                                  2005    2004    2003    2002    2001    2000    1999    1998    1997    1996 
                                                                                                                                  
RIVERSOURCE(SM) VARIABLE PORTFOLIO - INTERNATIONAL OPPORTUNITY FUND (12/9/1996)                                                   
(PREVIOUSLY AXP(R) VARIABLE PORTFOLIO - THREADNEEDLE INTERNATIONAL FUND)                                                          
Accumulation unit value at beginning of period       $1.06   $0.91   $0.72   $0.89   $1.26   $1.69   $1.17   $1.03   $1.01   $1.00
Accumulation unit value at end of period             $1.20   $1.06   $0.91   $0.72   $0.89   $1.26   $1.69   $1.17   $1.03   $1.01
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          26      24      17      19      18      15      11      15      14      --
RIVERSOURCE(SM) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND (12/9/1996)                                                            
(PREVIOUSLY AXP(R) VARIABLE PORTFOLIO - LARGE CAP EQUITY FUND)                                                                    
Accumulation unit value at beginning of period       $1.24   $1.18   $0.92   $1.20   $1.48   $1.81   $1.48   $1.20   $0.98   $1.00
Accumulation unit value at end of period             $1.30   $1.24   $1.18   $0.92   $1.20   $1.48   $1.81   $1.48   $1.20   $0.98
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          41      40      53      55      62      75      82      50      23      --
RIVERSOURCE(SM) VARIABLE PORTFOLIO - STRATEGY AGGRESSIVE FUND* (12/9/1996)                                                        
(PREVIOUSLY AXP(R) VARIABLE PORTFOLIO - STRATEGY AGGRESSIVE FUND)                                                                 
Accumulation unit value at beginning of period       $0.95   $0.88   $0.69   $1.02   $1.54   $1.91   $1.13   $1.11   $1.00   $1.00
Accumulation unit value at end of period             $1.03   $0.95   $0.88   $0.69   $1.02   $1.54   $1.91   $1.13   $1.11   $1.00
Number of accumulation units outstanding                                                                                          
at end of period (000 omitted)                          56      62      92     100     129     121      58      65      42      --

*RIVERSOURCE(SM) VARIABLE PORTFOLIO - STRATEGY AGGRESSIVE FUND MERGED INTO RIVERSOURCE(SM) VARIABLE PORTFOLIO - MID CAP GROWTH    
FUND ON MARCH 17, 2006.                                                                                                           

FINANCIAL STATEMENTS                                                            

You can find our audited financial statements and the audited financial         
statements of the subaccounts in the SAI.                                       

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THE VARIABLE ACCOUNT AND THE FUNDS                                              

THE VARIABLE ACCOUNT: The variable account was established under New York law on
Dec. 1, 1995, and the subaccounts are registered together as a single unit      
investment trust under the Investment Company Act of 1940 (the 1940 Act). This  
registration does not involve any supervision of our management or investment   
practices and policies by the SEC. All obligations arising under the contracts  
are general obligations of American Centurion Life.                             

The variable account meets the definition of a separate account under federal   
securities laws. We credit or charge income, capital gains and capital losses of
each subaccount only to that subaccount. State insurance law prohibits us from  
charging a subaccount with liabilities of any other subaccount or of our general
business. The variable account includes other subaccounts that are available    
under contracts that are not described in this prospectus.                      

Although the Internal Revenue Service (IRS) has issued some guidance on investor
control, the U.S. Treasury and the IRS may continue to examine this aspect of   
variable contracts and provide additional guidance on investor control. Their   
concern involves how many investment choices (subaccounts) may be offered by an 
insurance company and how many exchanges among those subaccounts may be allowed 
before the certificate owner would be currently taxed on income earned within   
the certificate. At this time, we do not know what the additional guidance will 
be or when action will be taken. We reserve the right to modify the certificate,
as necessary, so that the owner will not be subject to current taxation as the  
owner of the subaccount assets.                                                 

We intend to comply with all federal tax laws so that the certificate continues 
to qualify as an annuity for federal income tax purposes. We reserve the right  
to modify the certificate as necessary to comply with any new tax laws.         

THE FUNDS: The certificate currently offers subaccounts investing in shares of  
the funds listed in the table below.                                            

-  INVESTMENT OBJECTIVES: The investment managers and advisers cannot guarantee 
  that the funds will meet their investment objectives. Please read the funds'
 prospectuses for facts you should know before investing. These prospectuses
are available by contacting us at the address or telephone number on the  
first page of this prospectus.                                            

-  FUND NAME AND MANAGEMENT: A fund underlying your certificate in which a      
   subaccount invests may have a name, portfolio manager, objectives, strategies
  and characteristics that are the same or substantially similar to those of a
   publicly-traded retail mutual fund. Despite these similarities, an underlying
fund is not the same as any publicly-traded retail mutual fund. Each      
  underlying fund will have its own unique portfolio holdings, fees, operating
expenses and operating results. The results of each underlying fund may   
differ significantly from any publicly-traded retail mutual fund.         

-  ELIGIBLE PURCHASERS: All funds are available to serve as the underlying      
  investments for variable annuities and variable life insurance policies. The
   funds are not available to the public (see "Fund name and management" above).
   Some funds also are available to serve as investment options for tax-deferred
retirement plans. It is possible that in the future for tax, regulatory or
other reasons, it may be disadvantageous for variable annuity accounts and
variable life insurance accounts and/or tax-deferred retirement plans to  
invest in the available funds simultaneously. Although we and the funds do
not currently foresee any such disadvantages, the boards of directors or  
 trustees of each fund will monitor events in order to identify any material
 conflicts between annuity owners, policy owners and tax-deferred retirement
  plans and to determine what action, if any, should be taken in response to a
   conflict. If a board were to conclude that it should establish separate funds
   for the variable annuity, variable life insurance and tax-deferred retirement
 plan accounts, you would not bear any expenses associated with establishing
 separate funds. Please refer to the funds' prospectuses for risk disclosure
regarding simultaneous investments by variable annuity, variable life     
insurance and tax-deferred retirement plan accounts. Each fund intends to 
comply with the diversification requirements under Section 817(h) of the  
Code.                                                                     

-  REVENUE WE RECEIVE FROM THE FUNDS MAY CREATE POTENTIAL CONFLICTS OF INTEREST:
  We seek to provide a broad array of underlying funds taking into account the
  fees and charges imposed by each fund and the contract charges we impose. We
select the underlying funds in which the subaccounts initially invest and 
 upon any substitution (see "Substitution of Investments"). We also make all
decisions regarding which funds to retain in a certificate, which funds to
add to a certificate and which funds will no longer be offered in a       
   certificate. In making these decisions, we may consider various objective and
 subjective factors. Objective factors include, but are not limited to, fund
performance, fund expenses, classes of fund shares available, size of the 
 fund, and investment objectives and investing style of the fund. Subjective
 factors include, but are not limited to, investment sub-styles and process,
  management skill and history at other funds, and portfolio concentration and
 sector weightings. We also consider the levels and types of revenue a fund,
its distributor, investment adviser, subadviser, transfer agent or their  
affiliates pay us and our affiliates. This revenue includes, but is not   
   limited to, compensation for administrative services provided with respect to
the fund and support of marketing and distribution expenses incurred with 
respect to the fund.                                                      

We and/or our affiliates receive from each of the funds, or the funds'    
 affiliates, varying levels and types of revenue. The amount of this revenue
 is most often based on a percentage of average daily net assets invested in
  the fund. For example, the revenue we receive from affiliates of funds other
  than the RiverSource Variable Portfolio Funds (unaffiliated funds) currently
ranges up to 0.50% of the average daily net assets invested in the fund   
through this certificate and other contracts and certificates we or our   
affiliates issue.                                                         

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In some cases, this revenue may be based, in part, on sales one of our    
affiliates makes of other securities including, but not limited to,       
publicly-traded retail mutual funds and/or the average daily net assets   
resulting from these sales. We or our affiliates may also receive revenue 
which is not based on a percentage of average daily net assets.           

  The amount of this revenue varies by fund, may be significant and may create
potential conflicts of interest. The greatest amount and percentage of    
revenue we and our affiliates receive comes from assets allocated to      
   subaccounts investing in the RiverSource Variable Portfolio Funds (affiliated
funds) that are managed by RiverSource Investments, LLC (RiverSource      
Investments), one of our affiliates. Employee compensation and operating  
   goals at all levels are tied to the success of Ameriprise Financial, Inc. and
its affiliates, including us. Certain employees may receive higher        
 compensation and other benefits based, in part, on contract values that are
  invested in the RiverSource Variable Portfolio Funds. These revenue payments
may also influence recommendations we make regarding whether you should   
  invest in the certificate, and whether you should allocate purchase payments
 or certificate value to a subaccount that invests in a particular fund (see
"About the Service Providers").                                           

The revenue we receive from a fund or its affiliates is in addition to    
revenue we receive from the charges you pay when buying, owning and       
   surrendering the certificate (see "Expense Summary"). However, the revenue we
receive from a fund or its affiliates may come, at least in part, from the
fund's fees and expenses you pay indirectly when you allocate certificate 
value to the subaccount that invests in that fund.                        

   Please see the SAI for a table that ranks the unaffiliated funds according to
total dollar amounts they and their affiliates paid to us and/or our      
affiliates in 2005.                                                       

-  WHY REVENUES ARE PAID TO US: In accordance with applicable laws, regulations 
 and the terms of the agreements under which such revenue is paid, we or our
 affiliates may receive this revenue for various purposes including, but not
limited to:                                                               

-  Compensating, training and educating sales personnel.                  

-  Activities or services we or our affiliates provide that assist in the 
  promotion and distribution of the certificates including promoting the
funds available under the certificates to prospective and existing  
certificate owners.                                                 

-  Providing sub-transfer agency and shareholder servicing to certificate 
owners.                                                             

  -  Promoting, including and/or retaining the fund's investment portfolios as
underlying investment options in the certificates.                  

-  Advertising, printing and mailing sales literature, and printing and   
distributing prospectuses and reports.                              

   -  Furnishing personal services to certificate owners, including education of
certificate owners, answering routine inquiries regarding a fund,   
      maintaining accounts or providing such other services eligible for service
     fees as defined under the rules of the National Association of Securities
Dealers, Inc. (NASD).                                               

 -  Subaccounting, transaction processing, recordkeeping and administration.

-  SOURCES OF REVENUE RECEIVED FROM AFFILIATED FUNDS: The affiliated funds are  
managed by RiverSource Investments. The sources of revenue we receive from
 these affiliated funds, or from affiliates of these funds, may include, but
are not necessarily limited to, the following:                            

  -  Assets of the fund's adviser and transfer agent or an affiliate of these.
The revenue resulting from these sources may be based either on a   
    percentage of average daily net assets of the fund or on the actual cost
   of certain services we provide with respect to the fund. We may receive
    this revenue either in the form of a cash payment or it may be allocated
to us.                                                              

   -  Compensation paid out of 12b-1 fees that are deducted from fund assets and
     disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of
the Funds" table.                                                   

-  SOURCES OF REVENUE RECEIVED FROM UNAFFILIATED FUNDS: The unaffiliated funds  
are not managed by an affiliate of ours. The sources of revenue we receive
   from these unaffiliated funds, or the funds' affiliates, may include, but are
not necessarily limited to, the following:                                

 -  Assets of the fund's adviser, subadviser, transfer agent or an affiliate
      of these and assets of the fund's distributor or an affiliate. The revenue
    resulting from these sources usually is based on a percentage of average
daily net assets of the fund but there may be other types of payment
arrangements.                                                       

   -  Compensation paid out of 12b-1 fees that are deducted from fund assets and
     disclosed in the "12b-1 fees" column of the "Annual Operating Expenses of
the Funds" table.                                                   

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YOU CAN DIRECT YOUR NET PREMIUMS AND TRANSFERS TO ANY OR ALL OF THE SUBACCOUNTS 
OF THE VARIABLE ACCOUNT THAT INVEST IN SHARES OF THE FOLLOWING FUNDS:           

                                                        [Enlarge/Download Table]

FUND                       INVESTMENT OBJECTIVES AND POLICIES                                INVESTMENT ADVISER                   
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  
AIM V.I. Core Equity       Growth of capital. Invests normally at least 80% of its net       A I M Advisors, Inc.                 
Fund, Series I Shares      assets, plus the amount of any borrowings for investment                                               
                           purposes, in equity securities, including convertible                                                  
                           securities of established companies that have long-term                                                
                           above-average growth in earnings and dividends and growth                                              
                           companies that are believed to have the potential for                                                  
                           above-average growth in earnings and dividends. The Fund may                                           
                           invest up to 25% of its total assets in foreign securities.                                            

American Century VP        Capital growth. Invests primarily in common stocks that are       American Century Investment          
Capital Appreciation,      considered by management to have better-than-average prospects    Management, Inc.                     
Class I                    for appreciation.                                                                                      

American Century VP        Capital growth, with income as a secondary objective. Invests     American Century Investment          
Value, Class I             primarily in stocks of companies that management believes to be   Management, Inc.                     
                           undervalued at the time of purchase.                                                                   

Credit Suisse Trust -      Long-term growth of capital. Invests primarily in equity          Credit Suisse Asset Management, LLC, 
Global Small Cap           securities of small companies from at least three countries       investment adviser; Credit Suisse    
Portfolio                  including the U.S.                                                Asset Management Limited ("Credit    
                                                                                             Suisse Asset Management, LLC's"      
                                                                                             affiliates in U.K. and Japan, and    
                                                                                             Credit Suisse Asset Management       
                                                                                             (Australia) Limited), sub-advisers.  

Janus Aspen Series Large   Long-term growth of capital in a manner consistent with the       Janus Capital                        
Cap Growth Portfolio:      preservation of capital. Invests under normal circumstances at                                         
Institutional Shares       least 80% of its net assets in large-sized companies.                                                  
                           Large-sized companies are those whose market capitalization                                            
                           falls within the range of companies in the Russell 1000(R)                                             
                           Index at the time of purchase.                                                                         

Janus Aspen Series         Long-term growth of capital in a manner consistent with the       Janus Capital                        
Worldwide Growth           preservation of capital. Invests primarily in common stocks of                                         
Portfolio: Institutional   companies of any size located throughout the world. The                                                
Shares                     Portfolio normally invests in issuers from at least five                                               
                           different countries, including the United States. The Portfolio                                        
                           under unusual circumstances invests in fewer than five                                                 
                           countries or even a single country.                                                                    

RiverSource Variable       Maximum total investment return through a combination of          RiverSource Investments              
Portfolio - Balanced Fund  capital growth and current income. Invests primarily in a                                              
                           combination of common and preferred stocks, bonds and other                                            
                           debt securities. Under normal market conditions, at least 50%                                          
                           of the Fund's total assets are invested in common stocks and no                                        
                           less than 25% of the Fund's total assets are invested in debt                                          
                           securities. The Fund may invest up to 25% of its total assets                                          
                           in foreign investments.                                                                                

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                                                        [Enlarge/Download Table]

FUND                       INVESTMENT OBJECTIVES AND POLICIES                                INVESTMENT ADVISER                   
----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  
RiverSource Variable       Maximum current income consistent with liquidity and stability    RiverSource Investments              
Portfolio - Cash           of principal. Invests primarily in money market instruments,                                           
Management Fund            such as marketable debt obligations issued by corporations or                                          
                           the U.S. government or its agencies, bank certificates of                                              
                           deposit, bankers' acceptances, letters of credit, and                                                  
                           commercial paper, including asset-backed commercial paper.                                             

RiverSource Variable       High level of current income while attempting to conserve the     RiverSource Investments              
Portfolio - Diversified    value of the investment and continuing a high level of income                                          
Bond Fund                  for the longest period of time. Under normal market conditions,                                        
                           the Fund invests at least 80% of its net assets in bonds and                                           
                           other debt securities. At least 50% of the Fund's net assets                                           
                           will be invested in securities like those included in the                                              
                           Lehman Brothers Aggregate Bond Index (Index), which are                                                
                           investment grade and denominated in U.S. dollars. The Index                                            
                           includes securities issued by the U.S. government, corporate                                           
                           bonds, and mortgage- and asset-backed securities. Although the                                         
                           Fund emphasizes high- and medium-quality debt securities, it                                           
                           will assume some credit risk to achieve higher yield and/or                                            
                           capital appreciation by buying lower-quality (junk) bonds.                                             

RiverSource Variable       Capital appreciation. Invests primarily in equity securities of   RiverSource Investments, adviser;    
Portfolio - International  foreign issuers that offer strong growth potential. The Fund      Threadneedle International Limited,  
Opportunity Fund           may invest in developed and in emerging markets.                  an indirect wholly-owned subsidiary  
                                                                                             of Ameriprise Financial, subadviser. 

RiverSource Variable       Capital appreciation. Under normal market conditions, the Fund    RiverSource Investments              
Portfolio - Large Cap      invests at least 80% of its net assets in equity securities of                                         
Equity Fund                companies with market capitalization greater than $5 billion at                                        
                           the time of purchase.                                                                                  

RiverSource Variable       Growth of capital. Under normal market conditions, the Fund       RiverSource Investments              
Portfolio - Mid Cap        invests at least 80% of its net assets in equity securities of                                         
Growth Fund                mid capitalization companies. The investment manager defines                                           
                           mid-cap companies as those whose market capitalization (number                                         
                           of shares outstanding multiplied by the share price) falls                                             
                           within the range of the Russell Midcap(R) Growth Index.                                                

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THE FIXED ACCOUNT                                                               

You also may allocate purchase payments to the fixed account. We back the       
principal and interest guarantees relating to the fixed account. These          
guarantees are based on the continued claims-paying ability of the company. The 
value of the fixed account increases as we credit interest to the account.      
Purchase payments and transfers to the fixed account become part of our general 
account. We credit interest daily and compound it annually. The interest rate we
apply to each purchase payment and transfer to the fixed account is guaranteed  
for one year. Thereafter, we will change the rates from time to time at our     
discretion. These rates will be based on various factors including, but not     
limited to, the interest rate environment, returns earned on investments backing
these annuities, the rates currently in effect for new and existing company     
annuities, product design, competition, and our revenues and expenses.          

Interests in the fixed account are not required to be registered with the SEC.  
The SEC staff does not review the disclosures in this prospectus on the fixed   
account. Disclosures regarding the fixed account, however, may be subject to    
certain generally applicable provisions of the federal securities laws relating 
to the accuracy and completeness of statements made in prospectuses. (See       
"Making the Most of Your Certificate -- Transfer policies" for restrictions on  
transfers involving the fixed account.)                                         

BUYING YOUR CERTIFICATE                                                         

Our representative can help you prepare and submit your application.            
Alternatively, you may ask us for the forms and prepare them yourself. As the   
owner, you have all rights and may receive all benefits under the certificate.  
You can own a nonqualified annuity in joint tenancy with rights of survivorship 
only in spousal situations. You cannot own a qualified annuity in joint tenancy.

When you apply, you may select:                                                 

-  the fixed account and/or subaccounts in which you want to invest;            

-  how you want to make purchase payments;                                      

-  the date you want to start receiving annuity payouts (the annuity start      
date); and                                                                

-  a beneficiary.                                                               

If your application is complete, we will process it and apply your purchase     
payment to the fixed account and subaccounts you selected within two business   
days after we receive it at our home office. If we accept your application, we  
will send you a certificate. If your application is not complete, you must give 
us the information to complete it within five business days. If we cannot accept
your application within five business days, we will decline it and return your  
payment unless you specifically ask us to keep the payment and apply it once    
your application is complete. We will credit additional purchase payments you   
make to your accounts on the valuation date we receive them. If we receive an   
additional purchase payment at our home office before the close of business, we 
will credit any portion of that payment allocated to the subaccounts using the  
accumulation unit value we calculate on the valuation date we received the      
payment. If we receive an additional purchase payment at our home office at or  
after the close of business, we will credit any portion of that payment         
allocated to the subaccounts using the accumulation unit value we calculate on  
the next valuation date after we received the payment.                          

THE ANNUITY START DATE                                                          

Annuity payouts are to begin on the annuity start date. Your selected date can  
align with your actual retirement from a job, or it can be a different date,    
depending on your needs and goals and on certain restrictions. You also can     
change the date, provided you send us written instructions at least 30 days     
before annuity payouts begin.                                                   

FOR NONQUALIFIED ANNUITIES, the annuity start date must be:                     

-  no earlier than the 30th day after the certificate's effective date; and     

-  no later than the annuitant's 85th birthday.                                 

FOR QUALIFIED ANNUITIES, to comply with IRS regulations, the annuity start date 
generally must be:                                                              

-  by April 1 of the year following the calendar year when the annuitant reaches
age 70 1/2.                                                               

If you satisfy your RMDs in the form of partial surrenders from this            
certificate, annuity payouts can start as late as, but not later than, the      
annuitant's 85th birthday.                                                      

BENEFICIARY                                                                     

If death benefits become payable before the annuity start date while the        
certificate is in force and before annuity payouts begin, we will pay your named
beneficiary all or part of the certificate value. If there is no named          
beneficiary, then the default provisions of your contract apply. (See "Benefits 
in Case of Death" for more about beneficiaries.)                                

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PURCHASE PAYMENTS                                                               

MINIMUM ALLOWABLE PURCHASE PAYMENTS(1)                                          

If paying by installments under a scheduled payment plan:                 

$100 per month                                                      

$50 biweekly                                                        

If paying by any other method:                                            

$2,000 initial payment for nonqualified annuities                   

$1,000 initial payment for qualified annuities                      

$100 for any additional payments                                    

Installments must total at least $1,000 in the first year.                

(1)  If you do not make any purchase payments for the most recent 36 months, and
    your previous payments total $1,000 or less, we have the right to give you
    30 days' written notice and pay you the total value of your certificate in
a lump sum.                                                           

MAXIMUM ALLOWABLE PURCHASE PAYMENTS(2) (for the first year, this is based on    
your age or the age of the annuitant (whoever is older) on the effective date of
the certificate):                                                               

For the first year:                                                       

$1,000,000 through age 75                                           

$500,000 for ages 76 to 85                                          

For each subsequent year:                                                 

$50,000                                                             

(2)  These limits apply in total to all American Centurion Life annuities and   
  certificates you own. We reserve the right to increase maximum limits or
reduce age limits. For qualified annuities the tax-deferred retirement
plan's or the Code's limits on annual contributions also apply.       

HOW TO MAKE PURCHASE PAYMENTS                                                   

1 BY LETTER                                                                     

Send your check along with your name and certificate number to:                 

Regular mail:                                                                   

AMERICAN CENTURION LIFE ASSURANCE COMPANY                                       
BOX 5550                                                                        
ALBANY, NY 12205                                                                

Express mail:                                                                   

AMERICAN CENTURION LIFE ASSURANCE COMPANY                                       
20 MADISON AVENUE EXTENSION                                                     
ALBANY, NY 12203                                                                

2 BY SCHEDULED PAYMENT PLAN                                                     

Through:                                                                        

-  a bank authorization.                                                        

3 OTHER METHOD ACCEPTABLE TO US                                                 

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CHARGES                                                                         

ADMINISTRATIVE CHARGE                                                           

We charge this fee for establishing and maintaining your records. We deduct $30 
from the certificate value on your certificate anniversary at the end of each   
certificate year. We prorate this charge among the subaccounts and the fixed    
account in the same proportion your interest in each account bears to your total
certificate value.                                                              

We will waive this charge for any certificate year where:                       

-  the total purchase payments (less partial surrenders) on the current         
certificate anniversary is $10,000 or more; or                            

-  a death benefit is payable; or                                               

-  you surrender the certificate in full.                                       

This charge does not apply after annuity payouts begin.                         

We reserve the right to impose the administrative charge on all certificates,   
including those with purchase payments equal to or greater than $10,000.        

MORTALITY AND EXPENSE RISK FEE                                                  

We charge this fee daily to the subaccounts. The unit values of your subaccounts
reflect this fee and it totals 1% of their average daily net assets on an annual
basis. This fee covers the mortality risk and expense risk that we assume.      
Approximately two-thirds of this amount is for our assumption of mortality risk,
and one-third is for our assumption of expense risk. This fee does not apply to 
the fixed account.                                                              

Mortality risk arises because of our guarantee to pay a death benefit and our   
guarantee to make annuity payouts according to the terms of the contract and    
certificates, no matter how long a specific annuitant lives and no matter how   
long our entire group of annuitants live. If, as a group, annuitants outlive the
life expectancy we assumed in our actuarial tables, then we must take money from
our general assets to meet our obligations. If, as a group, annuitants do not   
live as long as expected, we could profit from the mortality risk fee.          

Expense risk arises because the administrative charge may not cover our         
expenses. We would have to make up any deficit from our general assets. We could
profit from the expense risk fee if future expenses are less than expected.     

The subaccounts pay us the mortality and expense risk fee they accrued as       
follows:                                                                        

-  first, to the extent possible, the subaccounts pay this fee from any         
dividends distributed from the funds in which they invest;                

-  then, if necessary, the funds redeem shares to cover any remaining fees      
payable.                                                                  

We may use any profits we realize from the subaccounts' payment to us of the    
mortality and expense risk fee for any proper corporate purpose, including,     
among others, payment of distribution (selling) expenses.                       

FUND FEES AND EXPENSES                                                          

There are deductions from and expenses paid out of the assets of the funds that 
are described in the prospectuses for those funds. (See "Annual Operating       
Expenses of the Funds.")                                                        

OTHER INFORMATION ON CHARGES                                                    

There is no surrender charge if you take a total or a partial surrender from    
your certificate.                                                               

In some cases, we may incur lower sales and administrative expenses. In those   
cases, we may, at our discretion, reduce or eliminate the administrative charge.
However, we expect this to occur infrequently.                                  

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VALUING YOUR INVESTMENT                                                         

We value your fixed account and subaccounts as follows:                         

FIXED ACCOUNT                                                                   

We value the amounts allocated to the fixed account directly in dollars. The    
fixed account value equals:                                                     

-  the sum of your purchase payments and transfer amounts allocated to the fixed
account;                                                                  

-  plus interest credited;                                                      

-  minus the sum of amounts surrendered and amounts transferred out; and        

-  minus any prorated portion of the administrative charge.                     

SUBACCOUNTS                                                                     

We convert amounts you allocated to the subaccounts into accumulation units.    
Each time you make a purchase payment or transfer amounts into one of the       
subaccounts, we credit a certain number of accumulation units to your           
certificate for that account. Conversely, we subtract a certain number of       
accumulation units from your certificate each time you take a partial surrender,
transfer amounts out of a subaccount or we assess an administrative charge.     

The accumulation units are the true measure of investment value in each         
subaccount during the accumulation period. They are related to, but not the same
as, the net asset value of the fund in which the subaccount invests. The dollar 
value of each accumulation unit can rise or fall daily depending on the variable
account expenses, performance of the fund and on certain fund expenses. Here is 
how we calculate accumulation unit values:                                      

NUMBER OF UNITS: to calculate the number of accumulation units for a particular 
subaccount we divide your investment by the current accumulation unit value.    

ACCUMULATION UNIT VALUE: the current accumulation unit value for each subaccount
equals the last value times the subaccount's current net investment factor.     

WE DETERMINE THE NET INVESTMENT FACTOR BY:                                      

-  adding the fund's current net asset value per share, plus the per share      
amount of any accrued income or capital gain dividends to obtain a current
adjusted net asset value per share; then                                  

-  dividing that sum by the previous adjusted net asset value per share; and    

-  subtracting the percentage factor representing the mortality and expense risk
fee from the result.                                                      

Because the net asset value of the fund may fluctuate, the accumulation unit    
value may increase or decrease. You bear all the investment risk in a           
subaccount.                                                                     

FACTORS THAT AFFECT SUBACCOUNT ACCUMULATION UNITS: accumulation units may change
in two ways -- in number and in value.                                          

The number of accumulation units you own may fluctuate due to:                  

-  additional purchase payments you allocate to the subaccounts;                

-  transfers into or out of the subaccounts;                                    

-  partial surrenders; and/or                                                   

-  deduction of a prorated portion of the administrative charge.                

Accumulation unit values will fluctuate due to:                                 

-  changes in fund net asset value;                                             

-  fund dividends distributed to the subaccounts;                               

-  fund capital gains or losses;                                                

-  fund operating expenses; and                                                 

-  mortality and expense risk fees.                                             

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MAKING THE MOST OF YOUR CERTIFICATE                                             

AUTOMATED DOLLAR-COST AVERAGING                                                 

Currently, you can use automated transfers to take advantage of dollar-cost     
averaging (investing a fixed amount at regular intervals). For example, you     
might transfer a set amount monthly from a relatively conservative subaccount to
a more aggressive one, or to several others, or from the fixed account to one or
more subaccounts. There is no charge for dollar-cost averaging.                 

This systematic approach can help you benefit from fluctuations in accumulation 
unit values caused by fluctuations in the market values of the funds. Since you 
invest the same amount each period, you automatically acquire more units when   
the market value falls and fewer units when it rises. The potential effect is to
lower your average cost per unit.                                               

HOW DOLLAR-COST AVERAGING WORKS                                                 

                                                                [Download Table]

                                                                         NUMBER  
By investing an equal number                     AMOUNT   ACCUMULATION  OF UNITS 
of dollars each month ...                MONTH  INVESTED   UNIT VALUE   PURCHASED
                                                                                 
                                          Jan     $100        $20         5.00   

                                          Feb      100         18         5.56   

you automatically buy                     Mar      100         17         5.88   
more units when the                                                              
per unit market price is low ... ------>  Apr      100         15         6.67   

                                          May      100         16         6.25   

                                          Jun      100         18         5.56   

                                          Jul      100         17         5.88   

and fewer units                           Aug      100         19         5.26   
when the per unit                                                                
market price is high.            ------>  Sept     100         21         4.76   

                                          Oct      100         20         5.00   

You paid an average price of $17.91 per unit over the 10 months, while the      
average market price actually was $18.10.                                       

Dollar-cost averaging does not guarantee that any subaccount will gain in value 
nor will it protect against a decline in value if market prices fall. Because   
dollar-cost averaging involves continuous investing, your success will depend   
upon your willingness to continue to invest regularly through periods of low    
price levels. Dollar-cost averaging can be an effective way to help meet your   
long-term goals. For specific features contact our home office. Some            
restrictions may apply.                                                         

TRANSFERRING BETWEEN ACCOUNTS                                                   

You may transfer certificate value from any one subaccount, or the fixed        
account, to another subaccount before annuity payouts begin.                    

When your request to transfer will be processed depends on when we receive it:  

-  If we receive your transfer request at our home office before the close of   
  business, we will process your transfer using the accumulation unit value we
calculate on the valuation date we received your transfer request.        

-  If we receive your transfer request at our home office at or after the close 
  of business, we will process your transfer using the accumulation unit value
we calculate on the next valuation date after we received your transfer   
request.                                                                  

There is no charge for transfers. Before making a transfer, you should consider 
the risks involved in changing investments.                                     

We may suspend or modify transfer privileges at any time.                       

WE SEEK TO PREVENT MARKET TIMING. MARKET TIMING IS FREQUENT OR SHORT-TERM       
TRADING ACTIVITY. WE DO NOT ACCOMMODATE SHORT-TERM TRADING ACTIVITIES. DO NOT   
BUY A CERTIFICATE IF YOU WISH TO USE SHORT-TERM TRADING STRATEGIES TO MANAGE    
YOUR INVESTMENT. THE MARKET TIMING POLICIES AND PROCEDURES DESCRIBED BELOW APPLY
TO TRANSFERS AMONG THE SUBACCOUNTS WITHIN THE CERTIFICATE. THE UNDERLYING FUNDS 
IN WHICH THE SUBACCOUNTS INVEST HAVE THEIR OWN MARKET TIMING POLICIES AND       
PROCEDURES. THE MARKET TIMING POLICIES OF THE UNDERLYING FUNDS MAY BE MORE OR   
LESS RESTRICTIVE THAN THE MARKET TIMING POLICIES AND PROCEDURES WE APPLY TO     
TRANSFERS AMONG THE SUBACCOUNTS OF THE CERTIFICATE, AND MAY INCLUDE REDEMPTION  
FEES. WE RESERVE THE RIGHT TO MODIFY OUR MARKET TIMING POLICIES AND PROCEDURES  
AT ANY TIME WITHOUT PRIOR NOTICE TO YOU.                                        

Market timing may hurt the performance of an underlying fund in which a         
subaccount invests in several ways, including but not necessarily limited to:   

-  diluting the value of an investment in an underlying fund in which a         
subaccount invests;                                                       

-  increasing the transaction costs and expenses of an underlying fund in which 
a subaccount invests; and                                                 

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-  preventing the investment adviser(s) of an underlying fund in which a        
  subaccount invests from fully investing the assets of the fund in accordance
with the fund's investment objectives.                                    

Market timing can reduce the value of your investment in the certificate. If    
market timing causes the returns of an underlying fund to suffer, certificate   
value you have allocated to a subaccount that invests in that underlying fund   
will be lower, too. Market timing can cause you, any joint owner of the         
certificate and your beneficiary(ies) under the certificate a financial loss.   

IN ORDER TO HELP PROTECT YOU AND THE UNDERLYING FUNDS FROM THE POTENTIALLY      
HARMFUL EFFECTS OF MARKET TIMING ACTIVITY, WE APPLY THE FOLLOWING MARKET TIMING 
POLICY TO DISCOURAGE FREQUENT TRANSFERS OF CERTIFICATE VALUE AMONG THE          
SUBACCOUNTS:                                                                    

We try to distinguish market timing from transfers that we believe are not      
harmful, such as periodic rebalancing for purposes of asset allocation or       
dollar-cost averaging. There is no set number of transfers that constitutes     
market timing. Even one transfer in related accounts may be market timing. We   
seek to restrict the transfer privileges of a certificate owner who makes more  
than three subaccount transfers in any 90 day period. We also reserve the right 
to refuse any transfer request, it, in our sole judgment, the dollar amount of  
the transfer request would adversely affect unit values.                        

If we determine, in our sole judgment, that your transfer activity constitutes  
market timing, we may modify, restrict or suspend your transfer privileges to   
the extent permitted by applicable law, which may vary based on the state law   
that applies to your certificate and the terms of your certificate. These       
restrictions or modifications may include, but not be limited to:               

-  requiring transfer requests to be submitted only by first-class U.S. mail;   

-  not accepting hand-delivered transfer requests or requests made by overnight 
mail;                                                                     

-  not accepting telephone or electronic transfer requests;                     

-  requiring a minimum time period between each transfer;                       

-  not accepting transfer requests of an agent acting under power of attorney;  

-  limiting the dollar amount that you may transfer at any one time; or         

-  suspending the transfer privilege.                                           

Subject to applicable state law and the terms of each certificate, we will apply
the policy described above to all certificate owners uniformly in all cases. We 
will notify you in writing after we impose any modification, restriction or     
suspension of your transfer rights.                                             

We cannot guarantee that we will be able to identify and restrict all market    
timing activity. Because we exercise discretion in applying the restrictions    
described above, we cannot guarantee that we will be able to restrict all market
timing activity. In addition, state law and the terms of some contracts or      
certificates may prevent us from stopping certain market timing activity. Market
timing activity that we are unable to identify and/or restrict may impact the   
performance of the underlying funds and may result in lower certificate values. 

IN ADDITION TO THE MARKET TIMING POLICY DESCRIBED ABOVE, WHICH APPLIES TO       
TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR CERTIFICATE, YOU SHOULD CAREFULLY   
REVIEW THE MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS. THE   
MARKET TIMING POLICIES AND PROCEDURES OF THE UNDERLYING FUNDS MAY BE MATERIALLY 
DIFFERENT THAN THOSE WE IMPOSE ON TRANSFERS AMONG THE SUBACCOUNTS WITHIN YOUR   
CERTIFICATE AND MAY INCLUDE MANDATORY REDEMPTION FEES AS WELL AS OTHER MEASURES 
TO DISCOURAGE FREQUENT TRANSFERS. AS AN INTERMEDIARY FOR THE UNDERLYING FUNDS,  
WE ARE REQUIRED TO ASSIST THEM IN APPLYING THEIR MARKET TIMING POLICIES AND     
PROCEDURES TO TRANSACTIONS INVOLVING THE PURCHASE, EXCHANGE AND REDEMPTION OF   
FUND SHARES. THIS ASSISTANCE MAY INCLUDE BUT NOT BE LIMITED TO PROVIDING THE    
UNDERLYING FUND UPON REQUEST WITH YOUR SOCIAL SECURITY NUMBER OR TAXPAYER       
IDENTIFICATION NUMBER AND THE DETAILS OF YOUR CERTIFICATE TRANSACTIONS INVOLVING
THE UNDERLYING FUND. AN UNDERLYING FUND, IN ITS SOLE DISCRETION, MAY INSTRUCT US
AT ANY TIME TO PROHIBIT YOU FROM MAKING FURTHER TRANSFERS OF CERTIFICATE VALUE  
TO OR FROM THE UNDERLYING FUND, AND WE MUST FOLLOW THIS INSTRUCTION. WE RESERVE 
THE RIGHT TO ADMINISTER AND COLLECT ON BEHALF OF AN UNDERLYING FUND ANY         
REDEMPTION FEE IMPOSED BY AN UNDERLYING FUND. MARKET TIMING POLICIES AND        
PROCEDURES ADOPTED BY UNDERLYING FUNDS MAY AFFECT YOUR INVESTMENT IN THE        
CERTIFICATE IN SEVERAL WAYS, INCLUDING BUT NOT LIMITED TO:                      

-  Each fund may restrict or refuse trading activity that the fund determines,  
in its sole discretion, represents market timing.                         

-  Even if we determine that your transfer activity does not constitute market  
timing under the market timing policies described above which we apply to 
  transfers you make under the certificate, it is possible that the underlying
fund's market timing policies and procedures, including instructions we   
 receive from a fund, may require us to reject your transfer request. Orders
we place to purchase fund shares for the variable account are subject to  
 acceptance by the fund. We reserve the right to reject without prior notice
to you any transfer request if the fund does not accept our order.        

-  Each underlying fund is responsible for its own market timing policies, and  
  we cannot guarantee that we will be able to implement specific market timing
policies and procedures that a fund has adopted. As a result, a fund's    
  returns might be adversely affected, and a fund might terminate our right to
offer its shares through the variable account.                            

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-  Funds that are available as investment options under the certificate may also
be offered to other intermediaries who are eligible to purchase and hold  
  shares of the fund, including without limitation, separate accounts of other
insurance companies and certain retirement plans. Even if we are able to  
implement a fund's market timing policies, we cannot guarantee that other 
   intermediaries purchasing that same fund's shares will do so, and the returns
of that fund could be adversely affected as a result.                     

Funds available as investment options under the certificate that invest in      
securities that trade in overseas securities markets may be at greater risk of  
loss from market timing, as market timers may seek to take advantage of changes 
in the values of securities between the close of overseas markets and the close 
of U.S. markets. Further the risks of market timing may be greater for          
underlying funds that invest in securities, such as small cap stocks, high yield
bonds, or municipal securities, that may be traded infrequently.                

FOR MORE INFORMATION ABOUT THE MARKET TIMING POLICIES AND PROCEDURES OF AN      
UNDERLYING FUND, THE RISKS THAT MARKET TIMING POSES TO THAT FUND, AND TO        
DETERMINE WHETHER AN UNDERLYING FUND HAS ADOPTED A REDEMPTION FEE, SEE THAT     
FUND'S PROSPECTUS.                                                              

TRANSFER POLICIES                                                               

-  Before annuity payouts begin, you may transfer certificate values between the
subaccounts, from the subaccounts to the fixed account or from the fixed  
account to the subaccounts.                                               

-  The amount transferred to any one account must be at least $100.             

HOW TO REQUEST A TRANSFER OR SURRENDER                                          

1 BY LETTER                                                                     

Send your name, certificate number, Social Security Number or Taxpayer          
Identification Number* and signed request for a transfer or surrender to:       

Regular mail:                                                                   

AMERICAN CENTURION LIFE ASSURANCE COMPANY                                       
P.O. BOX 5550                                                                   
ALBANY, NY 12205                                                                

Express mail:                                                                   

AMERICAN CENTURION LIFE ASSURANCE COMPANY                                       
20 MADISON AVENUE EXTENSION                                                     
ALBANY, NY 12203                                                                

MINIMUM AMOUNT                                                                  

Transfers or surrenders:   $100 or entire account balance                       

MAXIMUM AMOUNT                                                                  

Transfers or surrenders:   Certificate value or entire account balance          

*   Failure to provide your Social Security Number or Taxpayer Identification   
    Number may result in mandatory tax withholding on the taxable portion of the
distribution.                                                           

2 BY AUTOMATED TRANSFERS AND AUTOMATED PARTIAL SURRENDERS                       

You can set up automated transfers among your subaccounts or fixed account or   
partial surrenders from the accounts.                                           

You can start or stop this service by written request or other method acceptable
to us. You must allow 30 days for us to change any instructions that are        
currently in place.                                                             

-  Automated surrenders may be restricted by applicable law under some          
certificates.                                                             

-  Automated partial surrenders may result in IRS taxes and penalties on all or 
part of the amount surrendered.                                           

-  The balance in any account from which you make an automated transfer or      
  automated partial surrender must be sufficient to satisfy your instructions.
 If not, we will suspend your entire automated arrangement until the balance
is adequate.                                                              

-  If we must suspend your automated transfer or automated partial surrender    
arrangement for six months, we reserve the right to discontinue the       
arrangement in its entirety.                                              

MINIMUM AMOUNT                                                                  

Transfers or surrenders:   $100                                                 

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3 BY PHONE                                                                      

Call between 8 a.m. and 4:30 p.m. Eastern time:                                 

(800) 633-3565                                                                  

MINIMUM AMOUNT                                                                  

Transfers or surrenders:   $100 or entire account balance                       

MAXIMUM AMOUNT                                                                  

Transfers:                 Certificate value or entire account balance          

Surrenders:                $5,000                                               

We answer telephone requests promptly, but you may experience delays when the   
call volume is unusually high. If you are unable to get through, use the mail   
procedure as an alternative.                                                    

We will honor any telephone transfer or surrender requests that we believe are  
authentic and we will use reasonable procedures to confirm that they are. This  
includes asking identifying questions and recording calls. We will not allow a  
telephone surrender within 30 days of a phoned in address change. As long as we 
follow the procedures, we (and our affiliates) will not be liable for any loss  
resulting from fraudulent requests.                                             

Telephone transfers or surrenders are automatically available. You may request  
that telephone transfers or surrenders NOT be authorized from your account by   
writing to us.                                                                  

SURRENDERS                                                                      

You may surrender all or part of your certificate at any time before annuity    
payouts begin by sending us a written request or by calling us. We will process 
your surrender request on the valuation date we receive it. If we receive your  
surrender request at our home office before the close of business, we will      
process your surrender using the accumulation unit value we calculate on the    
valuation date we received your surrender request. If we receive your surrender 
request at our home office at or after the close of business, we will process   
your surrender using the accumulation unit value we calculate on the next       
valuation date after we received your surrender request. We may ask you to      
return the certificate. You may have to pay administrative charges (see         
"Charges") and IRS taxes and penalties (see "Taxes"). You cannot make surrenders
after annuity payouts begin.                                                    

Any partial surrenders you take under the certificate will reduce your          
certificate value. As a result, the value of your death benefit will also be    
reduced. In addition, surrenders you are required to take to satisfy RMDs under 
the Code may reduce the value of your death benefit (see "Taxes -- Qualified    
Annuities -- Required minimum distributions").                                  

SURRENDER POLICIES                                                              

If you have a balance in more than one account and you request a partial        
surrender, we will withdraw money from all your subaccounts and/or the fixed    
account in the same proportion as your value in each account correlates to your 
total certificate value, unless you request otherwise.                          

RECEIVING PAYMENT                                                               

By regular or express mail:                                                     

-  payable to you.                                                              

-  mailed to address of record.                                                 

NOTE: We will charge you a fee if you request express mail delivery.            

Normally, we will send the payment within seven days after receiving your       
request. However, we may postpone the payment if:                               

-  the surrender amount includes a purchase payment check that has not    
cleared;                                                            

-  the NYSE is closed, except for normal holiday and weekend closings;    

-  trading on the NYSE is restricted, according to SEC rules;             

-  an emergency, as defined by SEC rules, makes it impractical to sell    
securities or value the net assets of the accounts; or              

-  the SEC permits us to delay payment for the protection of security     
holders.                                                            

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CHANGING OWNERSHIP                                                              

You may change ownership of your nonqualified annuity at any time by completing 
a change of ownership form we approve and sending it to our home office. The    
change will become binding on us when we receive and record it. We will honor   
any change of ownership request that we believe is authentic and we will use    
reasonable procedures to confirm authenticity. If we follow these procedures, we
will not take any responsibility for the validity of the change.                

If you have a nonqualified annuity, you may incur income tax liability by       
transferring, assigning or pledging any part of it. (See "Taxes.")              

If you have a qualified annuity, you may not sell, assign, transfer, discount or
pledge your certificate as collateral for a loan, or as security for the        
performance of an obligation or for any other purpose except as required or     
permitted by the Code. However, if the owner is a trust or custodian, or an     
employer acting in a similar capacity, ownership of a certificate may be        
transferred to the annuitant.                                                   

BENEFITS IN CASE OF DEATH                                                       

If you or the annuitant die before annuity payouts begin while the certificate  
is in force, we will pay the beneficiary the greater of:                        

-  certificate value; or                                                        

-  purchase payments minus partial surrenders.                                  

IF YOU DIE BEFORE YOUR RETIREMENT DATE: When paying the beneficiary, we will    
process the death claim on the valuation date our death claim requirements are  
fulfilled. We will determine the certificate's value using the accumulation unit
value we calculate on that valuation date. We pay interest, if any, at a rate no
less than required by law. If requested, we will mail payment to the beneficiary
within seven days after our death claim requirements are fulfilled.             

NONQUALIFIED ANNUITIES: If your spouse is sole beneficiary and you die before   
the retirement date, your spouse may keep the certificate as owner. To do this  
your spouse must, within 60 days after our death claim requirements are         
fulfilled, give us written instructions to keep the certificate in force.       

If your beneficiary is not your spouse, we will pay the beneficiary in a lump   
sum unless you give us other written instructions. Generally, we must fully     
distribute the death benefit within five years of your death. However, the      
beneficiary may receive payouts under any annuity payout plan available under   
this certificate if:                                                            

-  the beneficiary asks us in writing within 60 days after our death claim      
requirements are fulfilled; and                                           

-  payouts begin no later than one year after your death, or other date as      
permitted by the IRS; and                                                 

-  the payout period does not extend beyond the beneficiary's life or life      
expectancy.                                                               

QUALIFIED ANNUITIES                                                             

-  SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and if   
your spouse is the sole beneficiary, your spouse may either elect to treat
the certificate as his/her own or elect an annuity payout plan or another 
 plan agreed to by us. If your spouse elects a payout plan, the payouts must
 begin no later than the year in which you would have reached age 70 1/2. If
you attained age 70 1/2 at the time of death, payouts must begin no later 
than Dec. 31 of the year following the year of your death.                

-  NON-SPOUSE BENEFICIARY: If you have not elected an annuity payout plan, and  
if death occurs prior to the year you would have attained age 70 1/2, the 
beneficiary may elect to receive payouts from the certificate over a five 
year period. If your beneficiary does not elect a five year payout, or if 
  your death occurs after attaining age 70 1/2, we will pay the beneficiary in
   a lump sum unless the beneficiary elects to receive payouts under any annuity
payout plan available under this certificate if:                          

-  the beneficiary asks us in writing within 60 days after our death claim
requirements are fulfilled; and                                     

   -  payouts begin no later than one year following the year of your death; and

-  the payout period does not extend beyond the beneficiary's life or life
expectancy.                                                         

-  ANNUITY PAYOUT PLAN: If you elect an annuity payout plan, the payouts to your
beneficiary will continue pursuant to the annuity payout plan you elect.  

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THE ANNUITY PAYOUT PERIOD                                                       

As owner of the certificate, you have the right to decide how and to whom       
annuity payouts will be made starting at the annuity start date. You may select 
one of the annuity payout plans outlined below, or we may mutually agree on     
other payout arrangements.                                                      

The amount available to purchase payouts under the plan you select is the       
certificate value on your annuity start date. We will make annuity payouts on a 
fixed basis.                                                                    

Amounts of payouts depend on:                                                   

-  the annuity payout plan you select;                                          

-  the annuitant's age and, in most cases, sex; and                             

-  the annuity table in the certificate.                                        

ANNUITY PAYOUT PLANS                                                            

You may choose any one of these annuity payout plans by giving us written       
instructions at least 30 days before certificate values are used to purchase the
payout plan:                                                                    

-  PLAN A -- LIFE ANNUITY -- NO REFUND: We make monthly payouts until the       
annuitant's death. Payouts end with the last payout before the annuitant's
   death. We will not make any further payouts. This means that if the annuitant
dies after we have made only one monthly payout, we will not make any more
payouts.                                                                  

-  PLAN B -- LIFE ANNUITY WITH FIVE, TEN OR 15 YEARS CERTAIN: We make monthly   
payouts for a guaranteed payout period of five, ten or 15 years that you  
elect. This election will determine the length of the payout period to the
   beneficiary if the annuitant should die before the elected period expires. We
calculate the guaranteed payout period from the annuity start date. If the
  annuitant outlives the elected guaranteed payout period, we will continue to
make payouts until the annuitant's death.                                 

-  PLAN C -- LIFE ANNUITY -- INSTALLMENT REFUND: We make monthly payouts until  
   the annuitant's death, with our guarantee that payouts will continue for some
period of time. We will make payouts for at least the number of months    
determined by dividing the amount applied under this option by the first  
monthly payout, whether or not the annuitant is living.                   

-  PLAN D -- JOINT AND LAST SURVIVOR LIFE ANNUITY -- NO REFUND: We make monthly 
  payouts while both the annuitant and a joint annuitant are living. If either
 annuitant dies, we will continue to make monthly payouts at the full amount
   until the death of the surviving annuitant. Payouts end with the death of the
second annuitant.                                                         

-  PLAN E -- PAYOUTS FOR A SPECIFIED PERIOD: We make monthly payouts for a      
specific payout period of ten to 30 years that you elect. We will make    
payouts only for the number of years specified whether the annuitant is   
  living or not. Depending on the selected time period, it is foreseeable that
 an annuitant can outlive the payout period selected. In addition, a 10% IRS
penalty tax could apply under this payout plan. (See "Taxes.")            

ANNUITY PAYOUT PLAN REQUIREMENTS FOR QUALIFIED ANNUITIES: If your certificate is
a qualified annuity, you must select a payout plan as of the retirement date set
forth in your certificate. You have the responsibility for electing a payout    
plan that complies with your certificate and with applicable law. Your          
certificate describes your payout plan options. The options will meet certain   
IRS regulations governing RMDs if the payout plan meets the incidental          
distribution benefit requirements, if any, and the payouts are made:            

-  in equal or substantially equal payments over a period not longer than the   
life of the annuitant or over the life of the annuitant and designated    
beneficiary; or                                                           

-  in equal or substantially equal payments over a period not longer than the   
   life expectancy of the annuitant or over the life expectancy of the annuitant
and designated beneficiary; or                                            

-  over a period certain not longer than the life expectancy of the annuitant or
over the life expectancy of the annuitant and designated beneficiary.     

IF WE DO NOT RECEIVE INSTRUCTIONS: You must give us written instructions for the
annuity payouts at least 30 days before the annuitant's retirement date. If you 
do not, we will make payouts under Plan B, with 120 monthly payouts guaranteed. 

IF MONTHLY PAYOUTS WOULD BE LESS THAN $20: We will calculate the amount of      
monthly payouts at the time the certificate value is used to purchase a payout  
plan. If the calculations show that monthly payouts would be less than $20, we  
have the right to pay the certificate value to the owner in a lump sum.         

DEATH AFTER ANNUITY PAYOUTS BEGIN: If you or the annuitant die after annuity    
payouts begin, we will pay any amount payable to the beneficiary as provided in 
the annuity payout plan in effect.                                              

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TAXES                                                                           

Generally, under current law, your certificate has a tax-deferral feature. This 
means any increase in the value of the fixed account and/or subaccounts in which
you invest is taxable to you only when you receive a payout or surrender (see   
detailed discussion below). Any portion of the annuity payouts and any          
surrenders you request that represent ordinary income normally are taxable.     
We will send you a tax information reporting form for any year in which we made 
a taxable distribution according to our records.                                

NONQUALIFIED ANNUITIES                                                          

Tax law requires that all nonqualified deferred annuity contracts or            
certificates issued by the same company (and possibly its affiliates) to the    
same owner during a calendar year be taxed as a single, unified contract when   
you take distributions from any one of those contracts or certificates.         

ANNUITY PAYOUTS: Generally, a portion of each payout will be ordinary income and
subject to tax, and a portion of each payout will be considered a return of part
of your investment and will not be taxed. Under Annuity Payout Plan A: Life     
annuity - no refund, where the annuitant dies before your investment in the     
certificate is fully recovered, the remaining portion of the unrecovered        
investment may be available as a federal income tax deduction to the owner for  
the last taxable year. Under all other annuity payout plans, where the annuity  
payouts end before your investment in the certificate is fully recovered, the   
remaining portion of the unrecovered investment may be available as a federal   
income tax deduction to the taxpayer for the tax year in which the payouts end. 
(See "Annuity Payout Plans.") All amounts you receive after your investment in  
the certificate is fully recovered will be subject to tax.                      

SURRENDERS: If you surrender part or all of your nonqualified annuity before    
your annuity payouts begin, your surrender payment will be taxed to the extent  
that the certificate value immediately before the surrender exceeds the         
investment in the contract. You also may have to pay a 10% IRS penalty for      
surrenders of taxable income you make before reaching age 59 1/2 unless certain 
exceptions apply.                                                               

WITHHOLDING (INCLUDING IRAs AND SEPs): If you receive taxable income as a result
of an annuity payout or a surrender, we may deduct withholding against the      
taxable income portion of the payment. Any withholding represents a prepayment  
of your tax due for the year. You take credit for these amounts on your annual  
income tax return. As long as you've provided us with a valid Social Security   
Number or Taxpayer Identification Number, you can elect not to have any         
withholding occur.                                                              

If the payment is part of an annuity payout plan, we generally compute the      
amount of withholding using payroll tables. You may provide us with a statement 
of how many exemptions to use in calculating the withholding.                   

If the distribution is any other type of payment (such as a partial or full     
surrender) we compute withholding using 10% of the taxable portion.             

The withholding requirements differ if we deliver the payment outside the United
States and/or you are a non-resident alien.                                     

Some states also may impose withholding requirements similar to the federal     
withholding described above. If this should be the case, we may deduct state    
withholding from the payment.                                                   

DEATH BENEFITS TO BENEFICIARIES: The death benefit under a certificate is not   
exempt from estate or income taxes. Any amount your beneficiary receives that   
represents deferred earnings within the certificate is taxable as ordinary      
income to the beneficiary in the year he or she receives the payments.          

ANNUITIES OWNED BY CORPORATIONS, PARTNERSHIPS OR TRUSTS: For nonqualified       
annuities, any annual increase in the value of annuities held by such entities  
(nonnatural persons) generally will be treated as ordinary income received      
during that year. However, if the trust was set up for the benefit of a natural 
person only, the income will generally remain tax-deferred.                     

PENALTIES: If you receive amounts from your nonqualified annuity before reaching
age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in   
your ordinary income. However, this penalty will not apply to any amount        
received:                                                                       

-  because of your death or, in the event of nonnatural ownership, the death of 
the annuitant;                                                            

-  because you become disabled (as defined in the Code);                        

-  if the distribution is part of a series of substantially equal periodic      
   payments, made at least annually, over your life or life expectancy (or joint
lives or life expectancies of you and your beneficiary);                  

-  if it is allocable to an investment before Aug. 14, 1982; or                 

-  if annuity payouts begin before the first certificate anniversary.           

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TRANSFER OF OWNERSHIP: If you transfer a nonqualified annuity without receiving 
adequate consideration, the transfer is a gift and also may be treated as a     
surrender for federal income tax purposes. If the gift is a currently taxable   
event for income tax purposes, the original owner will be taxed on the amount of
deferred earnings at the time of the transfer and also may be subject to the 10%
IRS penalty discussed earlier. In this case, the new owner's investment in the  
certificate will be the value of the certificate at the time of the transfer. In
general, this rule does not apply to transfers between spouses or former        
spouses. Please consult your tax advisor for further details.                   

COLLATERAL ASSIGNMENT: If you collaterally assign or pledge your certificate,   
earnings on purchase payments you made after Aug. 13, 1982 will be taxed to you 
like a withdrawal and you may have to pay a 10% IRS penalty.                    

QUALIFIED ANNUITIES                                                             

Adverse tax consequences may result if you do not ensure that contributions,    
distributions and other transactions under the certificate comply with the law. 
Qualified annuities have minimum distribution rules that govern the timing and  
amount of distributions. You should refer to your IRA disclosure statement or   
consult a tax advisor for additional information about the distribution rules   
applicable to your situation.                                                   

When you use your certificate to fund a retirement plan or IRA that is already  
tax-deferred under the Code, the certificate will not provide any necessary or  
additional tax deferral.                                                        

ANNUITY PAYOUTS: Under a qualified annuity, the entire payout generally is      
includable as ordinary income and is subject to tax unless: (1) the certificate 
is an IRA to which you made non-deductible contributions; or (2) you rolled     
after-tax dollars from a retirement plan into your IRA.                         

SURRENDERS: Under a qualified annuity, the entire surrender will generally be   
includable as ordinary income and is subject to tax unless: (1) the certificate 
is an IRA to which you made non-deductible contributions; or (2) you rolled     
after-tax dollars from a retirement plan into your IRA.                         

REQUIRED MINIMUM DISTRIBUTIONS: Retirement plans are subject to required        
withdrawals called required minimum distributions (RMDs) generally beginning at 
age 70 1/2. In addition, a new tax regulation, effective for RMDs calculated in 
2006 and after, may cause the RMDs for some certificates with certain death     
benefits to increase. RMDs may reduce the value of certain death benefits. You  
should consult your tax advisor for an explanation of the potential tax         
implications to you.                                                            

PENALTIES: If you receive amounts from your qualified annuity before reaching   
age 59 1/2, you may have to pay a 10% IRS penalty on the amount includable in   
your ordinary income. However, this penalty will not apply to any amount        
received:                                                                       

-  because of your death,                                                       

-  because you become disabled (as defined in the Code);                        

-  if the distribution is part of a series of substantially equal periodic      
  payments made at least annually, over your life or life expectancy (or joint
lives or life expectancies of you and your beneficiary); or               

-  to pay certain medical or education expenses (IRAs only).                    

DEATH BENEFITS TO BENEFICIARIES: The entire death benefit generally is taxable  
as ordinary income to the beneficiary in the year he or she receives payments   
from the qualified annuity. If you made non-deductible contributions to a       
traditional IRA, the portion of any distribution from the certificate that      
represents after-tax contributions is not taxable as ordinary income to your    
beneficiary. You are responsible for keeping all records tracking your          
non-deductible contributions to an IRA.                                         

COLLATERAL ASSIGNMENT: You may not collaterally assign or pledge your qualified 
annuity.                                                                        

IMPORTANT: Our discussion of federal tax laws is based upon our understanding of
current interpretations of these laws. Federal tax laws or current              
interpretations of them may change. For this reason and because tax consequences
are complex and highly individual and cannot always be anticipated, you should  
consult a tax advisor if you have any questions about taxation of your          
certificate.                                                                    

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AMERICAN CENTURION LIFE'S TAX STATUS: We are taxed as a life insurance company  
under the Code. For federal income tax purposes, the subaccounts are considered 
a part of our company, although their operations are treated separately in      
accounting and financial statements. Investment income is reinvested in the fund
in which each subaccount invests and becomes part of that subaccount's value.   
This investment income, including realized capital gains, is not taxed to us,   
and therefore no charge is made against the subaccounts for federal income      
taxes. We reserve the right to make such a charge in the future if there is a   
change in the tax treatment of variable annuities.                              

TAX QUALIFICATION: We intend that the certificate qualify as an annuity for     
federal income tax purposes. To that end, the provisions of the certificate are 
to be interpreted to ensure or maintain such tax qualification, in spite of any 
other provisions of the certificate. We reserve the right to amend the          
certificate to reflect any clarifications that may be needed or are appropriate 
to maintain such qualification or to conform the certificate to any applicable  
changes in the tax qualification requirements. We will send you a copy of any   
amendments.                                                                     

VOTING RIGHTS                                                                   

As an owner with investments in the subaccounts, you may vote on important fund 
policies. We will vote fund shares according to your instructions.              

The number of votes you have is determined by applying your percentage interest 
in each subaccount to the total number of votes allowed to the subaccount.      

We calculate votes separately for each subaccount. We will send notice of these 
meetings, proxy materials and a statement of the number of votes to which the   
voter is entitled.                                                              

We will vote shares for which we have not received instructions in the same     
proportion as the votes for which we received instructions. We also will vote   
the shares for which we have voting rights in the same proportion as the votes  
for which we received instructions.                                             

SUBSTITUTION OF INVESTMENTS                                                     

We may substitute the funds in which the subaccounts invest if:                 

-  laws or regulations change;                                                  

-  the existing funds become unavailable; or                                    

-  in our judgment, the funds no longer are suitable for the subaccounts.       

If any of these situations occur and if we believe it is in the best interest of
persons having voting rights under the certificate, we have the right to        
substitute a fund currently listed in this prospectus (existing fund) for       
another fund (new fund). The new fund may have higher fees and/or operating     
expenses than the existing fund. Also, the new fund may have investment         
objectives and policies and/or investment advisers which differ from the        
existing fund.                                                                  

We may also:                                                                    

-  change the funds in which the subaccounts invest, and                        

-  make additional subaccounts investing in additional funds.                   

We will notify you of any substitution or change. If we notify you that a       
subaccount will be eliminated or closed, you will have a certain period of time 
to tell us where to reallocate purchase payments or contract value currently    
allocated to that subaccount. If we do not receive your reallocation            
instructions by the due date, we automatically will reallocate to the subaccount
investing in the RiverSource Variable Portfolio - Cash Management Fund. You may 
then transfer this reallocated amount in accordance with the transfer provisions
of your certificate (see "Transferring Between Accounts" above).                

In the event of substitution of any of these changes, we may amend the          
certificate and take whatever action is necessary and appropriate without your  
consent or approval. However, we will not make any substitution or change       
without the necessary approval of the SEC and state insurance departments.      

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ABOUT THE SERVICE PROVIDERS                                                     

PRINCIPAL UNDERWRITER                                                           

Ameriprise Financial Services, Inc. serves as the principal underwriter and     
distributes the certificates continuously. Its offices are located at 70100     
Ameriprise Financial Center, Minneapolis, MN 55474. Ameriprise Financial        
Services, Inc. is a wholly-owned subsidiary of Ameriprise Financial, Inc.       

ISSUER                                                                          

American Centurion Life issues the certificates. American Centurion Life is a   
wholly-owned subsidiary of IDS Life, which is a wholly-owned subsidiary of      
Ameriprise Financial, Inc.                                                      

American Centurion Life is a stock life insurance company organized in 1969     
under the laws of the State of New York. Our home office is located at 20       
Madison Avenue Extension, Albany, NY 12203. American Centurion Life conducts a  
conventional life insurance business in New York.                               

LEGAL PROCEEDINGS.                                                              

The SEC, the NASD and several state authorities have brought proceedings        
challenging several mutual fund and variable product financial practices,       
generally including suitability, late trading, market timing, compensation and  
disclosure of revenue sharing arrangements. American Centurion Life has received
requests for information concerning some of these practices and is cooperating  
fully with these inquiries.                                                     

American Centurion Life and its affiliates are involved in a number of other    
legal and arbitration proceedings concerning matters arising in connection with 
the conduct of their respective business activities. American Centurion Life    
believes it has meritorious defenses to each of these actions and intends to    
defend them vigorously. American Centurion Life believes that it is not a party 
to, nor are any of its properties the subject of, any pending legal, arbitration
or regulatory proceedings that would have a material adverse effect on its      
consolidated financial condition, results of operations or liquidity. However,  
it is possible that the outcome of any such proceedings could have a material   
impact on results of operations in any particular reporting period as the       
proceedings are resolved.                                                       

There are no pending legal proceedings affecting the Variable Account. During   
2005, the principal underwriter of the contract, Ameriprise Financial Services, 
Inc., under its previous name, American Express Financial Advisors Inc., settled
various regulatory proceedings with the SEC, the NASD and state securities      
regulators. American Centurion Life does not believe that the terms of any of   
these settlements will have a material adverse impact on the ability of         
Ameriprise Financial Services, Inc. to perform its duties on behalf of the      
Variable Account as principal underwriter of the contract.                      

TABLE OF CONTENTS OF THE STATEMENT OF ADDITIONAL INFORMATION                    

                                                                [Download Table]
                                                                             
Calculating Annuity Payouts                                              p. 3

Rating Agencies                                                          p. 3

Revenues Received During Calendar Year 2005                              p. 3

Principal Underwriter                                                    p. 4

Independent Registered Public Accounting Firm                            p. 4

Financial Statements                                                         

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[RIVERSOURCE ANNUITIES(SM) LOGO]                                                

American Centurion Life Assurance Company                                       
20 Madison Avenue Extension                                                     
Albany, NY 12203                                                                
(800) 633-3563                                                                  

Ameriprise Financial Services, Inc. (Distributor), Member NASD, a wholly-owned
subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). RiverSource(SM)
insurance and annuity branded products are issued by American Centurion Life
Assurance Company, Albany NY, an Ameriprise Financial company.

(C) 2006 Ameriprise Financial, Inc. All rights reserved.

S-6102 M (5/06)                                                                 

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 STATEMENT OF ADDITIONAL INFORMATION
 FOR
 PRIVILEGED ASSETS(R) SELECT ANNUITY

ACL VARIABLE ANNUITY ACCOUNT 1

 MAY 1, 2006

ACL Variable Annuity Account 1 is a separate account established and maintained 
by American Centurion Life Assurance Company (American Centurion Life).         

This Statement of Additional Information (SAI) is not a prospectus. It should be
read together with the prospectus dated the same date as this SAI, which may be 
obtained by writing or calling us at the address and telephone number below.    

American Centurion Life Assurance Company                                       
20 Madison Avenue Extension                                                     
Albany, NY 12203                                                                
518-452-4150 (Albany area)                                                      
(800) 633-3563                                                                  

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TABLE OF CONTENTS                                                               

Calculating Annuity Payouts                                                 p. 3

Rating Agencies                                                             p. 3

Revenues Received During Calendar Year 2005                                 p. 3

Principal Underwriter                                                       p. 4

Independent Registered Public Accounting Firm                               p. 4

Financial Statements                                                            

CORPORATE CONSOLIDATION                                                         

Later this year, American Centurion Life plans to merge into one of its         
affiliates, IDS Life Insurance Company of New York. This merger will help       
simplify overall corporate structure because these two life insurance companies 
will be consolidated into one. We currently expect this consolidation to occur  
at the end of 2006, subject to certain regulatory and other approvals. At the   
time of the consolidation, we plan to change the name of the surviving life     
insurance company to RiverSource Life Insurance Co. of New York. This           
consolidation and renaming will not have any adverse effect on the benefits     
under your contract.                                                            

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2 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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CALCULATING ANNUITY PAYOUTS                                                     

We guarantee the fixed annuity payout amounts. Once calculated, the payout will 
remain the same and never change. To calculate annuity payouts we:              

-  take the total value of the fixed account and the subaccounts at the annuity 
start date or the date selected to begin receiving annuity payouts; then  

-  using an annuity table we apply the value according to the annuity payout    
plan selected.                                                            

The annuity payout table we use will be the one in effect at the time chosen to 
begin annuity payouts. The table will be equal to or greater than the table in  
the contract.                                                                   

RATING AGENCIES                                                                 

We receive ratings from independent rating agencies. These agencies evaluate the
financial soundness and claims-paying ability of insurance companies based on a 
number of different factors. The ratings reflect each agency's estimation of our
ability to meet our contractual obligations such as making annuity payouts and  
paying death benefits and other distributions. As such, the ratings relate to   
our fixed account and not to the subaccounts. This information generally does   
not relate to the management or performance of the subaccounts.                 

For detailed information on the agency ratings given to us, see "Debt & Ratings 
Information" under "Investors Relations" on our website at ameriprise.com or    
contact your sales representative. Or view our current ratings by visiting the  
agency websites directly at:                                                    

A.M. Best                                                         www.ambest.com

Fitch                                                       www.fitchratings.com

Standard & Poor's                                       www.standardandpoors.com

A.M. Best -- Rates insurance companies for their financial strength.            

Fitch -- Rates insurance companies for their claims-paying ability.             

Standard & Poor's -- Rates insurance companies for their financial strength.    

REVENUES RECEIVED DURING CALENDAR YEAR 2005:                                    

The following table shows the unaffiliated funds ranked according to highest to 
lowest total dollar amounts the funds and their affiliates paid to us and/or our
affiliates in 2005. Some of these funds may not be available under your contract
or policy. Please see your contract or policy prospectus regarding the          
investment options available to you.                                            

                                                        [Enlarge/Download Table]
                                                                                        
Fidelity(R) Variable Insurance Products                                    $8,854,855.66
Franklin(R) Templeton(R) Variable Insurance Products Trust                  6,823,584.36
Liberty Variable Investment Trust / Wanger Advisors Trust                   6,167,159.08
American Century(R) Variable Portfolios, Inc.                               5,916,210.77
Goldman Sachs Variable Insurance Trust                                      5,908,269.00
AIM Variable Insurance Funds                                                4,657,038.45
AllianceBernstein Variable Products Series Fund, Inc.                       4,105,185.33
Putnam Variable Trust                                                       2,894,721.89
MFS(R) Variable Insurance Trust(SM)                                         2,814,229.09
Credit Suisse Trust                                                         1,948,062.06
Wells Fargo Advantage Variable Trust Funds                                  1,785,045.10
Janus Aspen Series                                                            973,913.25
Evergreen Variable Annuity Trust                                              950,086.78
Oppenheimer Variable Account Funds                                            940,501.39
Third Avenue Variable Series Trust                                            930,151.06
Royce Capital Fund                                                            909,404.51
Lazard Retirement Series, Inc.                                                866,279.90
Van Kampen Life Investment Trust / The Universal Institutional Funds, Inc.    766,423.33
Pioneer Variable Contracts Trust                                              367,921.93
Calvert Variable Series, Inc.                                                 166,558.14
Dreyfus Investment Portfolios / Dreyfus Variable Investment Fund               40,580.81
STI Classic Variable Trust                                                     25,316.37
Premier VIT                                                                    20,167.99
Baron Capital Funds Trust                                                       7,180.35
J.P. Morgan Series Trust II                                                     4,344.49

If the revenue received from affiliated funds were included in the table above, 
payment to us or our affiliates by the RiverSource Variable Portfolio Funds or  
their affiliates would be at the top of the list.                               

--------------------------------------------------------------------------------
3 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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PRINCIPAL UNDERWRITER                                                           

Ameriprise Financial Services, Inc. (Ameriprise Financial Services) serves as   
principal underwriter for the certificate, which it offers on a continuous      
basis. Ameriprise Financial Services is registered with the Securities and      
Exchange Commission under the Securities Exchange Act of 1934 as a broker-dealer
and is a member of the National Association of Securities Dealers, Inc. (NASD). 
Our sales representatives are licensed insurance and annuity agents and are     
registered with the NASD as our representatives. Ameriprise Financial Services  
is an affiliate of ours. Both Ameriprise Financial Services and American        
Centurion Life are ultimately controlled by Ameriprise Financial, Inc. The      
principal business address of Ameriprise Financial Services is 70100 Ameriprise 
Financial Center, Minneapolis, MN 55474. American Centurion Life does not pay   
Ameriprise Financial Services any underwriting commissions for its role as      
principal underwriter of the certificate.                                       

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                                   

Ernst & Young LLP, independent registered public accounting firm, have audited  
the consolidated financial statements of American Centurion Life Assurance      
Company at Dec. 31, 2005 and 2004, and for each of the three years in the period
ended Dec. 31, 2005, and the individual financial statements of the segregated  
asset subaccounts of the ACL Variable Annuity Account 1 (which includes         
Privileged Assets Select Annuity) at Dec. 31, 2005, and for each of the periods 
indicated therein, as set forth in their reports. We've included our financial  
statements in the SAI in reliance on Ernst & Young LLP's reports, given on their
authority as experts in accounting and auditing.                                

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4 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                         

THE BOARD OF DIRECTORS                                                          
AMERICAN CENTURION LIFE ASSURANCE COMPANY                                       

We have audited the accompanying individual statements of assets and liabilities
of the 12 segregated asset subaccounts of ACL Variable Annuity Account 1,       
referred to in Note 1, as of December 31, 2005, and the related statements of   
operations and changes in net assets for the periods indicated therein. These   
financial statements are the responsibility of the management of American       
Centurion Life Assurance Company. Our responsibility is to express an opinion on
these financial statements based on our audits.                                 

We conducted our audits in accordance with the standards of the Public Company  
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. We were not engaged to perform an 
audit of ACL Variable Annuity Account 1's internal control over financial       
reporting. Our audits included consideration of internal control over financial 
reporting as a basis for designing audit procedures that are appropriate in the 
circumstances, but not for the purpose of expressing an opinion on the          
effectiveness of ACL Variable Annuity Account 1's internal control over         
financial reporting. Accordingly, we express no such opinion. An audit also     
includes examining, on a test basis, evidence supporting the amounts and        
disclosures in the financial statements, assessing the accounting principles    
used and significant estimates made by management, and evaluating the overall   
financial statement presentation. Our procedures included confirmation of       
securities owned as of December 31, 2005 by correspondence with the affiliated  
and unaffiliated mutual fund managers. We believe that our audits provide a     
reasonable basis for our opinion.                                               

In our opinion, the financial statements referred to above present fairly, in   
all material respects, the individual financial position of the 12 segregated   
asset subaccounts of ACL Variable Annuity Account 1, referred to in Note 1, at  
December 31, 2005, and the individual results of their operations and the       
changes in their net assets for the periods indicated therein, in conformity    
with U.S. generally accepted accounting principles.                             

                                          Ernest & Young LLP

Minneapolis, Minnesota                                                          
March 31, 2006                                                                  

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5 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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STATEMENTS OF ASSETS AND LIABILITIES                                            

                                                        [Enlarge/Download Table]

                                                                                 SEGREGATED ASSET SUBACCOUNTS                     
                                                            ----------------------------------------------------------------------
                                                                                                                       JANUS ASPEN
                                                             AIM VI CORE      AC VP CAP    AC VP VAL,     CS GLOBAL      LG CAP   
DECEMBER 31, 2005                                            STOCK, SER I    APPR, CL I      CL I          SM CAP       GRO, INST 
                                                                                                                                  
ASSETS                                                                                                                            
Investments, at value(1),(2)                                       $66,705       $79,890      $176,421      $104,351      $472,385
Dividends receivable                                                    --            --            --            --            --
Accounts receivable from American Centurion Life                                                                                  
  for certificate purchase payments                                     33            --            --            --           194
----------------------------------------------------------------------------------------------------------------------------------
Total assets                                                        66,738        79,890       176,421       104,351       472,579
==================================================================================================================================
LIABILITIES                                                                                                                       
Payable to American Centurion Life for                                                                                            
  mortality and expense risk fee                                        55            67           147            87           394
Payable for investments purchased                                       33            --            --            --           194
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities                                                       88            67           147            87           588
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in accumulation period          $66,650       $79,823      $176,274      $104,264      $471,991
==================================================================================================================================
(1) Investment shares                                                3,502         8,544        21,515         8,058        22,645
(2) Investments, at cost                                           $62,805       $82,330      $164,555      $ 99,551      $542,889
----------------------------------------------------------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                                                                    SEGREGATED ASSET SUBACCOUNTS                  
                                                           -----------------------------------------------------------------------
                                                             JANUS ASPEN         RVS VP      RVS VP         RVS VP        RVS VP  
DECEMBER 31, 2005 (CONTINUED)                              WORLD GRO, INST        BAL       CASH MGMT      DIV BOND      INTL OPP 
                                                                                                                                  
ASSETS                                                                                                                            
Investments, at value(1),(2)                                      $312,635       $63,619        $8,813       $37,867       $31,205
Dividends receivable                                                    --            --            26           123            --
Accounts receivable from American Centurion Life                                                                                  
  for certificate purchase payments                                     40            --            --            33            --
----------------------------------------------------------------------------------------------------------------------------------
Total assets                                                       312,675        63,619         8,839        38,023        31,205
==================================================================================================================================
LIABILITIES                                                                                                                       
Payable to American Centurion Life for                                                                                            
  mortality and expense risk fee                                       261            53             8            31            26
Payable for investments purchased                                       40            --            --            --            --
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities                                                      301            53             8            31            26
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in accumulation period         $312,374       $63,566        $8,831       $37,992       $31,179
==================================================================================================================================
(1) Investment shares                                               11,181         4,293         8,816         3,615         2,883
(2) Investments, at cost                                          $389,097       $64,585        $8,813       $38,161       $29,583
----------------------------------------------------------------------------------------------------------------------------------

                                                        [Enlarge/Download Table]

                                                                                                              SEGREGATED ASSET    
                                                                                                                SUBACCOUNTS       
                                                                                                         -------------------------
                                                                                                            RVS VP       RVS VP   
DECEMBER 31, 2005 (CONTINUED)                                                                             LG CAP EQ  STRATEGY AGGR
                                                                                                                                  
ASSETS                                                                                                                            
Investments, at value(1),(2)                                                                                 $53,840       $57,626
Dividends receivable                                                                                              --            --
Accounts receivable from American Centurion Life for certificate purchase payments                                30            20
----------------------------------------------------------------------------------------------------------------------------------
Total assets                                                                                                  53,870        57,646
==================================================================================================================================
LIABILITIES                                                                                                                       
Payable to American Centurion Life for mortality and expense risk fee                                             44            47
Payable for investments purchased                                                                                 --            --
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities                                                                                                 44            47
----------------------------------------------------------------------------------------------------------------------------------
Net assets applicable to contracts in accumulation period                                                    $53,826       $57,599
==================================================================================================================================
(1) Investment shares                                                                                          2,449         6,602
(2) Investments, at cost                                                                                     $66,731       $87,603
----------------------------------------------------------------------------------------------------------------------------------

See accompanying notes to financial statements.                                 

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6 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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STATEMENTS OF OPERATIONS                                                        

                                                        [Enlarge/Download Table]

                                                                                 SEGREGATED ASSET SUBACCOUNTS                      
                                                            ---------------------------------------------------------------------- 
                                                                                                                       JANUS ASPEN 
                                                             AIM VI CORE      AC VP CAP    AC VP VAL,     CS GLOBAL      LG CAP    
YEAR ENDED DECEMBER 31, 2005                                 STOCK, SER I    APPR, CL I      CL I          SM CAP       GRO, INST  
                                                                                                                                   
INVESTMENT INCOME                                                                                                                  
Dividend income                                                     $  282       $    --      $  1,486       $    --      $  1,552 
Variable account expenses                                              620           669         1,688           881         4,624 
---------------------------------------------------------------------------------------------------------------------------------- 
Investment income (loss) -- net                                       (338)         (669)         (202)         (881)       (3,072)
================================================================================================================================== 
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET                                                                          
Realized gain (loss) on sales of investments:                                                                                      
  Proceeds from sales                                                3,872         6,800        24,912         8,165        56,667 
  Cost of investments sold                                           3,746         8,549        24,010         8,767        69,910 
---------------------------------------------------------------------------------------------------------------------------------- 
Net realized gain (loss) on sales of investments                       126        (1,749)          902          (602)      (13,243)
Distributions from capital gains                                        --            --        17,196            --            -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                        1,896        15,451       (11,043)       14,161        29,640 
---------------------------------------------------------------------------------------------------------------------------------- 
Net gain (loss) on investments                                       2,022        13,702         7,055        13,559        16,397 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets                                                                                              
  resulting from operations                                         $1,684       $13,033      $  6,853       $12,678      $ 13,325 
================================================================================================================================== 

                                                        [Enlarge/Download Table]

                                                                                    SEGREGATED ASSET SUBACCOUNTS                   
                                                           ----------------------------------------------------------------------- 
                                                             JANUS ASPEN         RVS VP      RVS VP         RVS VP        RVS VP   
YEAR ENDED DECEMBER 31, 2005 (CONTINUED)                   WORLD GRO, INST        BAL       CASH MGMT      DIV BOND      INTL OPP  
                                                                                                                                   
INVESTMENT INCOME                                                                                                                  
Dividend income                                                   $  4,253       $ 1,676       $   257        $1,264        $  382 
Variable account expenses                                            3,060           642           101           339           269 
---------------------------------------------------------------------------------------------------------------------------------- 
Investment income (loss) -- net                                      1,193         1,034           156           925           113 
================================================================================================================================== 
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET                                                                          
Realized gain (loss) on sales of investments:                                                                                      
  Proceeds from sales                                               32,606        19,768        61,460         7,062         8,310 
  Cost of investments sold                                          43,156        19,596        61,460         7,015         9,202 
---------------------------------------------------------------------------------------------------------------------------------- 
Net realized gain (loss) on sales of investments                   (10,550)          172            --            47          (892)
Distributions from capital gains                                        --         1,899            --            --            -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                       23,390        (1,237)           --          (569)        4,227 
---------------------------------------------------------------------------------------------------------------------------------- 
Net gain (loss) on investments                                      12,840           834            --          (522)        3,335 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets                                                                                              
  resulting from operations                                       $ 14,033       $ 1,868       $   156        $  403        $3,448 
================================================================================================================================== 

                                                        [Enlarge/Download Table]

                                                                                                              SEGREGATED ASSET     
                                                                                                                SUBACCOUNTS        
                                                                                                         ------------------------- 
                                                                                                            RVS VP       RVS VP    
YEAR ENDED DECEMBER 31, 2005 (CONTINUED)                                                                  LG CAP EQ  STRATEGY AGGR 
                                                                                                                                   
INVESTMENT INCOME                                                                                                                  
Dividend income                                                                                               $  577       $    48 
Variable account expenses                                                                                        517           539 
---------------------------------------------------------------------------------------------------------------------------------- 
Investment income (loss) -- net                                                                                   60          (491)
================================================================================================================================== 
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS -- NET                                                                          
Realized gain (loss) on sales of investments:                                                                                      
  Proceeds from sales                                                                                          3,247         8,958 
  Cost of investments sold                                                                                     4,140        15,553 
---------------------------------------------------------------------------------------------------------------------------------- 
Net realized gain (loss) on sales of investments                                                                (893)       (6,595)
Distributions from capital gains                                                                                  --            -- 
Net change in unrealized appreciation or depreciation of investments                                           3,550        11,103 
---------------------------------------------------------------------------------------------------------------------------------- 
Net gain (loss) on investments                                                                                 2,657         4,508 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets resulting from operations                                               $2,717       $ 4,017 
================================================================================================================================== 

See accompanying notes to financial statements.                                 

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7 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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STATEMENTS OF CHANGES IN NET ASSETS                                             

                                                        [Enlarge/Download Table]

                                                                                 SEGREGATED ASSET SUBACCOUNTS                      
                                                            ---------------------------------------------------------------------- 
                                                                                                                       JANUS ASPEN 
                                                             AIM VI CORE      AC VP CAP    AC VP VAL,     CS GLOBAL      LG CAP    
YEAR ENDED DECEMBER 31, 2005                                 STOCK, SER I    APPR, CL I      CL I          SM CAP       GRO, INST  
                                                                                                                                   
OPERATIONS                                                                                                                         
Investment income (loss) -- net                                    $  (338)      $  (669)     $   (202)     $   (881)     $ (3,072)
Net realized gain (loss) on sales of investments                       126        (1,749)          902          (602)      (13,243)
Distributions from capital gains                                        --            --        17,196            --            -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                        1,896        15,451       (11,043)       14,161        29,640 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets                                                                                              
  resulting from operations                                          1,684        13,033         6,853        12,678        13,325 
================================================================================================================================== 
CERTIFICATE TRANSACTIONS                                                                                                           
Certificate purchase payments                                        5,836         5,192         8,322         2,898        17,638 
Net transfers(1)                                                     2,050         9,684        (5,988)       11,898       (18,468)
Certificate charges                                                   (133)         (104)          (32)          (95)         (443)
Certificate terminations:                                                                                                          
  Surrender benefits                                                (3,446)       (4,573)         (245)       (1,585)      (34,846)
---------------------------------------------------------------------------------------------------------------------------------- 
Increase (decrease) from certificate transactions                    4,307        10,199         2,057        13,116       (36,119)
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at beginning of year                                     60,659        56,591       167,364        78,470       494,785 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at end of year                                          $66,650       $79,823      $176,274      $104,264      $471,991 
================================================================================================================================== 
ACCUMULATION UNIT ACTIVITY                                                                                                         
Units outstanding at beginning of year                              39,383        50,757        79,387        66,431       344,748 
Certificate purchase payments                                        3,858         4,380         3,947         2,346        12,449 
Net transfers(1)                                                     1,379         8,332        (2,798)        9,470       (13,012)
Certificate charges                                                    (89)          (91)          (15)          (78)         (314)
Certificate terminations:                                                                                                          
  Surrender benefits                                                (2,243)       (4,137)         (114)       (1,406)      (25,357)
---------------------------------------------------------------------------------------------------------------------------------- 
Units outstanding at end of year                                    42,288        59,241        80,407        76,763       318,514 
================================================================================================================================== 

                                                        [Enlarge/Download Table]

                                                                                    SEGREGATED ASSET SUBACCOUNTS                   
                                                           ----------------------------------------------------------------------- 
                                                             JANUS ASPEN         RVS VP      RVS VP         RVS VP        RVS VP   
YEAR ENDED DECEMBER 31, 2005 (CONTINUED)                   WORLD GRO, INST        BAL       CASH MGMT      DIV BOND      INTL OPP  
                                                                                                                                   
OPERATIONS                                                                                                                         
Investment income (loss) -- net                                   $  1,193       $ 1,034       $   156       $   925       $   113 
Net realized gain (loss) on sales of investments                   (10,550)          172            --            47          (892)
Distributions from capital gains                                        --         1,899            --            --            -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                       23,390        (1,237)           --          (569)        4,227 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets                                                                                              
  resulting from operations                                         14,033         1,868           156           403         3,448 
================================================================================================================================== 
CERTIFICATE TRANSACTIONS                                                                                                           
Certificate purchase payments                                        8,347         1,582           618         2,521           495 
Net transfers(1)                                                   (11,649)       (1,820)       (2,423)        6,501         1,583 
Certificate charges                                                   (446)          (42)           (2)          (60)           (2)
Certificate terminations:                                                                                                          
  Surrender benefits                                               (17,173)       (7,979)           --            --            -- 
---------------------------------------------------------------------------------------------------------------------------------- 
Increase (decrease) from certificate transactions                  (20,921)       (8,259)       (1,807)        8,962         2,076 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at beginning of year                                    319,262        69,957        10,482        28,627        25,655 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at end of year                                         $312,374       $63,566       $ 8,831       $37,992       $31,179 
================================================================================================================================== 
ACCUMULATION UNIT ACTIVITY                                                                                                         
Units outstanding at beginning of year                             208,702        48,023         8,738        21,439        24,187 
Certificate purchase payments                                        5,499         1,082           512         1,877           465 
Net transfers(1)                                                    (7,639)       (1,248)       (2,003)        4,871         1,425 
Certificate charges                                                   (294)          (29)           (1)          (45)           (2)
Certificate terminations:                                                                                                          
  Surrender benefits                                               (11,441)       (5,417)           --            --            -- 
---------------------------------------------------------------------------------------------------------------------------------- 
Units outstanding at end of year                                   194,827        42,411         7,246        28,142        26,075 
================================================================================================================================== 

See accompanying notes to financial statements.                                 

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8 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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STATEMENTS OF CHANGES IN NET ASSETS                                             

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                                                                                                              SEGREGATED ASSET     
                                                                                                                SUBACCOUNTS        
                                                                                                         ------------------------- 
                                                                                                            RVS VP       RVS VP    
YEAR ENDED DECEMBER 31, 2005 (CONTINUED)                                                                  LG CAP EQ  STRATEGY AGGR 
                                                                                                                                   
OPERATIONS                                                                                                                         
Investment income (loss) -- net                                                                             $    60        $  (491)
Net realized gain (loss) on sales of investments                                                               (893)        (6,595)
Distributions from capital gains                                                                                 --             -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                                                                 3,550         11,103 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets resulting from operations                                               2,717          4,017 
================================================================================================================================== 
CERTIFICATE TRANSACTIONS                                                                                                           
Certificate purchase payments                                                                                 1,740          2,945 
Net transfers(1)                                                                                              2,049             -- 
Certificate charges                                                                                             (30)           (78)
Certificate terminations:                                                                                                          
  Surrender benefits                                                                                         (2,672)        (8,348)
---------------------------------------------------------------------------------------------------------------------------------- 
Increase (decrease) from certificate transactions                                                             1,087         (5,481)
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at beginning of year                                                                              50,022         59,063 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at end of year                                                                                   $53,826        $57,599 
================================================================================================================================== 
ACCUMULATION UNIT ACTIVITY                                                                                                         
Units outstanding at beginning of year                                                                       40,389         62,254 
Certificate purchase payments                                                                                 1,386          3,102 
Net transfers(1)                                                                                              1,677             -- 
Certificate charges                                                                                             (24)           (83)
Certificate terminations:                                                                                                          
  Surrender benefits                                                                                         (2,086)        (9,108)
---------------------------------------------------------------------------------------------------------------------------------- 
Units outstanding at end of year                                                                             41,342         56,165 
================================================================================================================================== 

(1) Includes transfer activity from (to) other subaccounts and transfers from   
(to) American Centurion Life's fixed account.                           

See accompanying notes to financial statements.                                 

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9 - ACL VARIABLE ANNUITY ACCOUNT 1                                              

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STATEMENTS OF CHANGES IN NET ASSETS                                             

                                                        [Enlarge/Download Table]

                                                                                 SEGREGATED ASSET SUBACCOUNTS                      
                                                            ---------------------------------------------------------------------- 
                                                                                                                       JANUS ASPEN 
                                                             AIM VI CORE      AC VP CAP    AC VP VAL,     CS GLOBAL      LG CAP    
YEAR ENDED DECEMBER 31, 2004                                 STOCK, SER I    APPR, CL I      CL I          SM CAP       GRO, INST  
                                                                                                                                   
OPERATIONS                                                                                                                         
Investment income (loss) -- net                                   $   (336)     $   (542)    $     994       $  (725)     $ (4,262)
Net realized gain (loss) on sales of investments                      (171)       (5,668)       17,083        (3,809)      (22,097)
Distributions from capital gains                                        --            --         2,272            --            -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                        2,010         9,828         1,449        15,756        41,549 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets                                                                                              
  resulting from operations                                          1,503         3,618        21,798        11,222        15,190 
================================================================================================================================== 
CERTIFICATE TRANSACTIONS                                                                                                           
Certificate purchase payments                                        6,996         4,944         2,970         3,489        22,413 
Net transfers(1)                                                   (17,882)          (53)       89,961          (698)        7,396 
Certificate charges                                                   (179)         (122)          (44)          (96)         (538)
Certificate terminations:                                                                                                          
  Surrender benefits                                               (31,900)      (11,752)     (197,310)       (3,670)      (55,790)
---------------------------------------------------------------------------------------------------------------------------------- 
Increase (decrease) from certificate transactions                  (42,965)       (6,983)     (104,423)         (975)      (26,519)
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at beginning of year                                    102,121        59,956       249,989        68,223       506,114 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at end of year                                         $ 60,659      $ 56,591     $ 167,364       $78,470      $494,785 
================================================================================================================================== 
ACCUMULATION UNIT ACTIVITY                                                                                                         
Units outstanding at beginning of year                              68,423        57,275       134,303        67,463       364,890 
Certificate purchase payments                                        4,767         4,777         1,520         3,336        16,491 
Net transfers(1)                                                   (12,210)          (90)       46,612          (789)        4,982 
Certificate charges                                                   (121)         (117)          (23)          (92)         (400)
Certificate terminations:                                                                                                          
  Surrender benefits                                               (21,476)      (11,088)     (103,025)       (3,487)      (41,215)
---------------------------------------------------------------------------------------------------------------------------------- 
Units outstanding at end of year                                    39,383        50,757        79,387        66,431       344,748 
================================================================================================================================== 

                                                        [Enlarge/Download Table]

                                                                                    SEGREGATED ASSET SUBACCOUNTS                   
                                                           ----------------------------------------------------------------------- 
                                                             JANUS ASPEN         RVS VP      RVS VP         RVS VP        RVS VP   
YEAR ENDED DECEMBER 31, 2004 (CONTINUED)                   WORLD GRO, INST        BAL       CASH MGMT      DIV BOND      INTL OPP  
                                                                                                                                   
OPERATIONS                                                                                                                         
Investment income (loss) -- net                                   $    (47)      $   942       $   (27)     $    907       $    30 
Net realized gain (loss) on sales of investments                   (29,497)         (942)           --           590          (894)
Distributions from capital gains                                        --            --            --            --            -- 
Net change in unrealized appreciation or                                                                                           
  depreciation of investments                                       40,410         5,900            --           (89)        4,462 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets                                                                                              
  resulting from operations                                         10,866         5,900           (27)        1,408         3,598 
================================================================================================================================== 
CERTIFICATE TRANSACTIONS                                                                                                           
Certificate purchase payments                                       13,843         2,037           539         2,453           732 
Net transfers(1)                                                   (39,558)       (7,626)           --       (36,989)        6,919 
Certificate charges                                                   (532)          (69)          (25)          (79)           (9)
Certificate terminations:                                                                                                          
  Surrender benefits                                               (33,651)         (249)         (242)       (6,466)       (1,140)
---------------------------------------------------------------------------------------------------------------------------------- 
Increase (decrease) from certificate transactions                  (59,898)       (5,907)          272       (41,081)        6,502 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at beginning of year                                    368,294        69,964        10,237        68,300        15,555 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at end of year                                         $319,262       $69,957       $10,482      $ 28,627       $25,655 
================================================================================================================================== 
ACCUMULATION UNIT ACTIVITY                                                                                                         
Units outstanding at beginning of year                             249,736        52,113         8,511        52,913        17,046 
Certificate purchase payments                                        9,527         1,486           450         1,874           779 
Net transfers(1)                                                   (27,237)       (5,340)           --       (28,399)        7,562 
Certificate charges                                                   (365)          (50)          (21)          (60)           (9)
Certificate terminations:                                                                                                          
  Surrender benefits                                               (22,959)         (186)         (202)       (4,889)       (1,191)
---------------------------------------------------------------------------------------------------------------------------------- 
Units outstanding at end of year                                   208,702        48,023         8,738        21,439        24,187 
================================================================================================================================== 

See accompanying notes to financial statements.                                 

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10 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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STATEMENTS OF CHANGES IN NET ASSETS                                             

                                                        [Enlarge/Download Table]

                                                                                                      SEGREGATED ASSET SUBACCOUNTS 
                                                                                                      ---------------------------- 
                                                                                                            RVS VP       RVS VP    
YEAR ENDED DECEMBER 31, 2004 (CONTINUED)                                                                  LG CAP EQ  STRATEGY AGGR 
                                                                                                                                   
OPERATIONS                                                                                                                         
Investment income (loss) -- net                                                                            $    (79)      $   (720)
Net realized gain (loss) on sales of investments                                                             (8,787)       (30,869)
Distributions from capital gains                                                                                 --             -- 
Net change in unrealized appreciation or depreciation of investments                                         10,541         35,669 
---------------------------------------------------------------------------------------------------------------------------------- 
Net increase (decrease) in net assets resulting from operations                                               1,675          4,080 
================================================================================================================================== 
CERTIFICATE TRANSACTIONS                                                                                                           
Certificate purchase payments                                                                                 2,384          3,537 
Net transfers(1)                                                                                             (2,826)         4,569 
Certificate charges                                                                                             (62)          (110)
Certificate terminations:                                                                                                          
  Surrender benefits                                                                                        (14,277)       (33,284)
---------------------------------------------------------------------------------------------------------------------------------- 
Increase (decrease) from certificate transactions                                                           (14,781)       (25,288)
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at beginning of year                                                                              63,128         80,271 
---------------------------------------------------------------------------------------------------------------------------------- 
Net assets at end of year                                                                                  $ 50,022       $ 59,063 
================================================================================================================================== 
ACCUMULATION UNIT ACTIVITY                                                                                                         
Units outstanding at beginning of year                                                                       53,421         91,640 
Certificate purchase payments                                                                                 2,027          4,096 
Net transfers(1)                                                                                             (2,407)         5,333 
Certificate charges                                                                                             (53)          (129)
Certificate terminations:                                                                                                          
  Surrender benefits                                                                                        (12,599)       (38,686)
---------------------------------------------------------------------------------------------------------------------------------- 
Units outstanding at end of year                                                                             40,389         62,254 
================================================================================================================================== 

(1) Includes transfer activity from (to) other subaccounts and transfers from   
(to) American Centurion Life's fixed account.                           

See accompanying notes to financial statements.                                 

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11 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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NOTES TO FINANCIAL STATEMENTS                                                   

1. ORGANIZATION                                                                 

ACL Variable Annuity Account 1 (the Account) was established under New York law 
and the subaccounts are registered together as a single unit investment trust of
American Centurion Life under the Investment Company Act of 1940, as amended    
(the 1940 Act) and exists in accordance with the rules and regulations of the   
New York State Insurance Department.                                            

The Account is used as a funding vehicle for Privileged Assets(R) Select Annuity
contracts issued by American Centurion Life.                                    

The Account is comprised of various subaccounts. Each subaccount invests        
exclusively in shares of the following funds or portfolios (collectively, the   
Funds), which are registered under the 1940 Act as open-end management          
investment companies.                                                           

The name of each Fund and the corresponding subaccount name are provided below. 

                                                        [Enlarge/Download Table]

SUBACCOUNT                        FUND                                                                      
----------------------------------------------------------------------------------------------------------- 
                                                                                                            
AIM VI Core Stock, Ser I          AIM V.I. Core Stock Fund, Series I Shares(1)                              
AC VP Cap Appr, Cl I              American Century VP Capital Appreciation, Class I                         
AC VP Val, Cl I                   American Century VP Value, Class I                                        
CS Global Sm Cap                  Credit Suisse Trust - Global Small Cap Portfolio                          
Janus Aspen Lg Cap Gro, Inst      Janus Aspen Series Large Cap Growth Portfolio: Institutional Shares       
Janus Aspen World Gro, Inst       Janus Aspen Series Worldwide Growth Portfolio: Institutional Shares       
RVS VP Bal                        RiverSource(SM) Variable Portfolio - Balanced Fund                        
                                    (previously AXP(R) Variable Portfolio - Managed Fund)                   
RVS VP Cash Mgmt                  RiverSource(SM) Variable Portfolio - Cash Management Fund                 
                                    (previously AXP(R) Variable Portfolio - Cash Management Fund)           
RVS VP Div Bond                   RiverSource(SM) Variable Portfolio - Diversified Bond Fund                
                                    (previously AXP(R) Variable Portfolio - Diversified Bond Fund)          
RVS VP Intl Opp                   RiverSource(SM) Variable Portfolio - International Opportunity Fund       
                                    (previously AXP(R) Variable Portfolio - Threadneedle International Fund)
RVS VP Lg Cap Eq                  RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                
                                    (previously AXP(R) Variable Portfolio - Large Cap Equity Fund)          
RVS VP Strategy Aggr              RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund(2)          
                                    (previously AXP(R) Variable Portfolio - Strategy Aggressive Fund)       

(1) AIM V.I. Core Stock Fund, Series I Shares merged into AIM V.I. Core Equity  
Fund, Series I Shares on April 28, 2006.                                
(2) RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund merged into   
   RiverSource(SM) Variable Portfolio - Mid Cap Growth Fund on March 17, 2006.

The assets of each subaccount of the Account are not chargeable with liabilities
arising out of the business conducted by any other segregated asset account or  
by American Centurion Life.                                                     

American Centurion Life serves as issuer of the contracts.                      

Ameriprise Financial, Inc. (Ameriprise Financial) (formerly American Express    
Financial Corporation) was formerly a wholly-owned subsidiary of American       
Express Company. On Sept. 30, 2005, American Express Company distributed its    
Ameriprise Financial common shares to American Express Company shareholders.    
Ameriprise Financial is the parent company of IDS Life Insurance Company (IDS   
Life). IDS Life is the parent company of American Centurion Life. Ameriprise    
Financial owns all the outstanding stock of IDS Life and replaced American      
Express Company as the ultimate control person of American Centurion Life.      

CORPORATE CONSOLIDATION                                                         

Later this year, American Centurion Life plans to merge into one of its         
affiliates, IDS Life Insurance Company of New York. This merger will help       
simplify overall corporate structure because these two life insurance companies 
will be consolidated into one. This consolidation is expected to occur at the   
end of 2006, subject to certain regulatory and other approvals. At the time of  
the consolidation, the surviving life insurance company will be renamed to      
RiverSource Life Insurance Co. of New York. This consolidation and renaming will
not have any adverse effect on the benefits under your contract.                

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES                                   

INVESTMENTS IN THE FUNDS                                                        

Investments in shares of the Funds are stated at market value which is the net  
asset value per share as determined by the respective Funds. Investment         
transactions are accounted for on the date the shares are purchased and sold.   
Realized gains and losses on the sales of investments are computed using the    
average cost method. Income from dividends and gains from realized capital gain 
distributions are reinvested in additional shares of the Funds and are recorded 
as income by the subaccounts on the ex-dividend date.                           

Unrealized appreciation or depreciation of investments in the accompanying      
financial statements represents the subaccounts' share of the Funds'            
undistributed net investment income, undistributed realized gain or loss and the
unrealized appreciation or depreciation on their investment securities.         

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12 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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FEDERAL INCOME TAXES                                                            

American Centurion Life is taxed as a life insurance company. The Account is    
treated as part of American Centurion Life for federal income tax purposes.     
Under existing tax law, no income taxes are payable with respect to any         
investment income of the Account to the extent the earnings are credited under  
the certificates. Based on this, no charge is being made currently to the       
Account for federal income taxes. American Centurion Life will review           
periodically the status of this policy in the event of changes in the tax law. A
charge may be made in future years for any federal income taxes that would be   
attributable to the certificates.                                               

USE OF ESTIMATES                                                                

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

3. VARIABLE ACCOUNT EXPENSES                                                    

American Centurion Life makes contractual assurances to the Account that        
possible future adverse changes in administrative expenses and mortality        
experience of the certificate owners and annuitants will not affect the Account.
American Centurion Life deducts a daily mortality and expense risk fee equal, on
an annual basis, to 1% of the average daily net assets of each subaccount.      

4. CERTIFICATE CHARGES                                                          

American Centurion Life deducts a certificate administrative charge of $30 per  
year. This charge reimburses American Centurion Life for expenses incurred in   
establishing and maintaining the annuity records. The charge may be waived based
upon the underlying certificate value.                                          

5. RELATED PARTY TRANSACTIONS                                                   

For the period from Oct. 1, 2005 through Dec. 31, 2005, management fees were    
paid indirectly to RiverSource Investments, LLC, an affiliate of American       
Centurion Life, in its capacity as investment manager for the following         
RiverSource(SM) Variable Portfolio Funds (formerly American Express(R) Variable 
Portfolio Funds) shown in the table below. For the period from Jan. 1, 2005     
through Sept. 30, 2005, investment management services were paid indirectly to  
Ameriprise Financial. The Fund's Investment Management Services Agreement       
provides for a fee at a percentage of each Fund's average daily net assets that 
declines annually as each Fund's assets increase. The percentage range for each 
Fund is as follows:                                                             

                                                        [Enlarge/Download Table]

FUND                                                                                  PERCENTAGE RANGE
------------------------------------------------------------------------------------------------------
                                                                                                      
RiverSource(SM) Variable Portfolio - Balanced Fund                                    0.630% to 0.550%
RiverSource(SM) Variable Portfolio - Cash Management Fund                             0.510% to 0.440%
RiverSource(SM) Variable Portfolio - Diversified Bond Fund                            0.610% to 0.535%
RiverSource(SM) Variable Portfolio - International Opportunity Fund                   0.870% to 0.795%
RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                            0.630% to 0.570%
RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund                         0.650% to 0.575%

For the following Funds the fee may be adjusted upward or downward by a maximum 
performance incentive adjustment of 0.08% for RiverSource(SM) Variable Portfolio
- Balanced Fund and 0.12% for each remaining Fund. The adjustment is based on a 
comparison of the performance of each Fund to an index of similar funds up to a 
maximum percentage of each Fund's average daily net assets.                     

RiverSource(SM) Variable Portfolio - Balanced Fund                              
RiverSource(SM) Variable Portfolio - International Opportunity Fund             
RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                      
RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund                   

The RiverSource(SM) Variable Portfolio Funds, as shown in the table above, also 
have an agreement with IDS Life, an affiliate of American Centurion Life, for   
distribution services. Under a Plan and Agreement of Distribution pursuant to   
Rule 12b-1, each Fund pays a distribution fee at an annual rate up to 0.125% of 
each Fund's average daily net assets.                                           

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13 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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The following RiverSource(SM) Variable Portfolio Funds, as shown in the table   
below, have an Administrative Services Agreement with Ameriprise Financial.     
Under this agreement, each Fund pays Ameriprise Financial a fee for             
administration and accounting services at a percentage of each Fund's average   
daily net assets that declines annually as each Fund's assets increase. The     
percentage range for each Fund is as follows:                                   

                                                        [Enlarge/Download Table]

FUND                                                                                  PERCENTAGE RANGE
------------------------------------------------------------------------------------------------------
                                                                                                      
RiverSource(SM) Variable Portfolio - Balanced Fund                                    0.060% to 0.030%
RiverSource(SM) Variable Portfolio - Cash Management Fund                             0.060% to 0.030%
RiverSource(SM) Variable Portfolio - Diversified Bond Fund                            0.070% to 0.040%
RiverSource(SM) Variable Portfolio - International Opportunity Fund                   0.080% to 0.050%
RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                            0.060% to 0.030%
RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund                         0.060% to 0.030%

Prior to Oct. 1, 2005, the fee percentage of each Fund's average daily net      
assets declined annually as each Fund's assets increased as follows:            

                                                        [Enlarge/Download Table]

FUND                                                                                  PERCENTAGE RANGE
------------------------------------------------------------------------------------------------------
                                                                                                      
RiverSource(SM) Variable Portfolio - Balanced Fund                                    0.040% to 0.020%
RiverSource(SM) Variable Portfolio - Cash Management Fund                             0.030% to 0.020%
RiverSource(SM) Variable Portfolio - Diversified Bond Fund                            0.050% to 0.025%
RiverSource(SM) Variable Portfolio - International Opportunity Fund                   0.060% to 0.035%
RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                            0.050% to 0.030%
RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund                         0.060% to 0.035%

The RiverSource(SM) Variable Portfolio Funds, as shown in the table above, pay  
custodian fees to Ameriprise Trust Company (formerly American Express Trust     
Company), an affiliate of American Centurion Life.                              

SUBSEQUENT EVENT                                                                

Shareholders approved moving transfer agent services from the Investment        
Management Services Agreement to a new transfer agent agreement at a shareholder
meeting on Feb. 15, 2006 for the RiverSource(SM) Variable Portfolio Funds shown 
in the table above. The Funds will then enter into a separate transfer agent    
agreement with RiverSource Service Corporation. The fee under that agreement    
will be uniform for the RiverSource(SM) Variable Portfolio Funds shown in the   
table above at an annual rate of 0.06% of average daily net assets. The impact  
of moving transfer agent fees from the Investment Management Services Agreement 
fee schedules varies by each fund and decreases the rate between 0.03% and 0.15%
of average daily net assets.                                                    

6. INVESTMENT TRANSACTIONS                                                      

The subaccounts' purchases of Funds' shares, including reinvestment of dividend 
distributions, for the year ended Dec. 31, 2005 were as follows:                

                                                        [Enlarge/Download Table]

SUBACCOUNT                      FUND                                                                    PURCHASES
-----------------------------------------------------------------------------------------------------------------
                                                                                                                 
AIM VI Core Stock, Ser I        AIM V.I. Core Stock Fund, Series I Shares                               $   7,896
AC VP Cap Appr, Cl I            American Century VP Capital Appreciation, Class I                          16,397
AC VP Val, Cl I                 American Century VP Value, Class I                                         44,110
CS Global Sm Cap                Credit Suisse Trust - Global Small Cap Portfolio                           20,487
Janus Aspen Lg Cap Gro, Inst    Janus Aspen Series Large Cap Growth Portfolio: Institutional Shares        17,870
Janus Aspen World Gro, Inst     Janus Aspen Series Worldwide Growth Portfolio: Institutional Shares        13,139
RVS VP Bal                      RiverSource(SM) Variable Portfolio - Balanced Fund                         14,436
RVS VP Cash Mgmt                RiverSource(SM) Variable Portfolio - Cash Management Fund                  59,795
RVS VP Div Bond                 RiverSource(SM) Variable Portfolio - Diversified Bond Fund                 16,907
RVS VP Intl Opp                 RiverSource(SM) Variable Portfolio - International Opportunity Fund        10,504
RVS VP Lg Cap Eq                RiverSource(SM) Variable Portfolio - Large Cap Equity Fund                  4,366
RVS VP Strategy Aggr            RiverSource(SM) Variable Portfolio - Strategy Aggressive Fund               2,963

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14 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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7. FINANCIAL HIGHLIGHTS                                                         

The table below shows certain financial information regarding the subaccounts.  

                                                        [Enlarge/Download Table]

                                                                                                  JANUS ASPEN                     
                                       AIM VI CORE     AC VP CAP     AC VP VAL,      CS GLOBAL       LG CAP        JANUS ASPEN    
                                      STOCK, SER I    APPR, CL I        CL I           SM CAP      GRO, INST     WORLD GRO, INST  
                                      ------------------------------------------------------------------------------------------  
                                                                                                                                  
ACCUMULATION UNIT VALUE                                                                                                           
At Dec. 31, 2001                           $  1.54        $  1.13        $  1.69        $  1.06        $  1.46           $  1.63  
At Dec. 31, 2002                           $  1.23        $  0.88        $  1.46        $  0.69        $  1.06           $  1.20  
At Dec. 31, 2003                           $  1.49        $  1.05        $  1.86        $  1.01        $  1.39           $  1.47  
At Dec. 31, 2004                           $  1.54        $  1.12        $  2.11        $  1.18        $  1.44           $  1.53  
At Dec. 31, 2005                           $  1.58        $  1.35        $  2.19        $  1.36        $  1.48           $  1.60  
--------------------------------------------------------------------------------------------------------------------------------  
UNITS (000S)                                                                                                                      
At Dec. 31, 2001                               126             67             94             74            492               355  
At Dec. 31, 2002                                86             52            160             76            391               286  
At Dec. 31, 2003                                68             57            134             67            365               250  
At Dec. 31, 2004                                39             51             79             66            345               209  
At Dec. 31, 2005                                42             59             80             77            319               195  
--------------------------------------------------------------------------------------------------------------------------------  
NET ASSETS (000S)                                                                                                                 
At Dec. 31, 2001                           $   194        $    76        $   159        $    78        $   720           $   578  
At Dec. 31, 2002                           $   106        $    45        $   234        $    53        $   416           $   344  
At Dec. 31, 2003                           $   102        $    60        $   250        $    68        $   506           $   368  
At Dec. 31, 2004                           $    61        $    57        $   167        $    78        $   495           $   319  
At Dec. 31, 2005                           $    67        $    80        $   176        $   104        $   472           $   312  
--------------------------------------------------------------------------------------------------------------------------------  
INVESTMENT INCOME RATIO(1)                                                                                                        
For the year ended Dec. 31, 2001              0.22%            --           0.55%            --           0.07%             0.47% 
For the year ended Dec. 31, 2002              1.18%            --           0.89%            --             --              0.86% 
For the year ended Dec. 31, 2003              1.05%            --           1.15%            --           0.09%             1.12% 
For the year ended Dec. 31, 2004              0.61%            --           1.53%            --           0.14%             0.99% 
For the year ended Dec. 31, 2005              0.45%            --           0.88%            --           0.34%             1.39% 
--------------------------------------------------------------------------------------------------------------------------------  
EXPENSE RATIO(2)                                                                                                                  
For the year ended Dec. 31, 2001              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2002              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2003              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2004              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2005              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
--------------------------------------------------------------------------------------------------------------------------------  
TOTAL RETURN(3)                                                                                                                   
For the year ended Dec. 31, 2001             (9.41%)       (28.48%)        11.92%        (29.33%)       (25.51%)          (23.11%)
For the year ended Dec. 31, 2002            (20.13%)       (22.12%)       (13.61%)       (34.91%)       (27.40%)          (26.38%)
For the year ended Dec. 31, 2003             21.14%         19.32%         27.40%         46.38%         31.13%            22.50% 
For the year ended Dec. 31, 2004              3.20%          6.51%         13.20%         16.82%          3.48%             3.74% 
For the year ended Dec. 31, 2005              2.33%         20.85%          3.99%         14.99%          3.25%             4.82% 
--------------------------------------------------------------------------------------------------------------------------------  

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15 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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                                                        [Enlarge/Download Table]

                                          RVS VP         RVS VP        RVS VP         RVS VP         RVS VP          RVS VP       
                                           BAL         CASH MGMT      DIV BOND       INTL OPP      LG CAP EQ      STRATEGY AGGR   
                                      ------------------------------------------------------------------------------------------  
                                                                                                                                  
ACCUMULATION UNIT VALUE                                                                                                           
At Dec. 31, 2001                           $  1.31         $ 1.21          $1.19        $  0.89        $  1.20           $  1.02  
At Dec. 31, 2002                           $  1.13         $ 1.21          $1.25        $  0.72        $  0.92           $  0.69  
At Dec. 31, 2003                           $  1.34         $ 1.20          $1.29        $  0.91        $  1.18           $  0.88  
At Dec. 31, 2004                           $  1.46         $ 1.20          $1.34        $  1.06        $  1.24           $  0.95  
At Dec. 31, 2005                           $  1.50         $ 1.22          $1.35        $  1.20        $  1.30           $  1.03  
--------------------------------------------------------------------------------------------------------------------------------  
UNITS (000S)                                                                                                                      
At Dec. 31, 2001                                58              9             30             18             62               129  
At Dec. 31, 2002                                57              9             33             19             55               100  
At Dec. 31, 2003                                52              9             53             17             53                92  
At Dec. 31, 2004                                48              9             21             24             40                62  
At Dec. 31, 2005                                42              7             28             26             41                56  
--------------------------------------------------------------------------------------------------------------------------------  
NET ASSETS (000S)                                                                                                                 
At Dec. 31, 2001                           $    75         $   11          $  36        $    16        $    74           $   132  
At Dec. 31, 2002                           $    64         $   11          $  41        $    13        $    50           $    68  
At Dec. 31, 2003                           $    70         $   10          $  68        $    16        $    63           $    80  
At Dec. 31, 2004                           $    70         $   10          $  29        $    26        $    50           $    59  
At Dec. 31, 2005                           $    64         $    9          $  38        $    31        $    54           $    58  
--------------------------------------------------------------------------------------------------------------------------------  
INVESTMENT INCOME RATIO(1)                                                                                                        
For the year ended Dec. 31, 2001              2.90%          3.89%          6.44%          1.24%          0.29%             0.20% 
For the year ended Dec. 31, 2002              2.60%          1.14%          5.10%          0.99%          0.53%               --  
For the year ended Dec. 31, 2003              2.26%          0.51%          3.53%          0.91%          0.62%               --  
For the year ended Dec. 31, 2004              2.31%          0.74%          3.82%          1.16%          0.86%               --  
For the year ended Dec. 31, 2005              2.60%          2.57%          3.71%          1.42%          1.12%             0.09% 
--------------------------------------------------------------------------------------------------------------------------------  
EXPENSE RATIO(2)                                                                                                                  
For the year ended Dec. 31, 2001              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2002              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2003              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2004              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
For the year ended Dec. 31, 2005              1.00%          1.00%          1.00%          1.00%          1.00%             1.00% 
--------------------------------------------------------------------------------------------------------------------------------  
TOTAL RETURN(3)                                                                                                                   
For the year ended Dec. 31, 2001            (11.49%)         2.54%          6.25%        (29.37%)       (18.92%)          (33.77%)
For the year ended Dec. 31, 2002            (13.74%)         0.00%          5.04%        (19.10%)       (23.33%)          (32.35%)
For the year ended Dec. 31, 2003             18.58%         (0.83%)         3.20%         26.39%         28.26%            27.54% 
For the year ended Dec. 31, 2004              8.51%         (0.26%)         3.45%         16.24%          4.83%             8.32% 
For the year ended Dec. 31, 2005              2.89%          1.59%          1.10%         12.73%          5.12%             8.09% 
--------------------------------------------------------------------------------------------------------------------------------  

(1) These amounts represent the dividends, excluding distributions of capital   
gains, received by the subaccount from the underlying fund, net of      
management fees assessed by the fund manager, divided by the average net
    assets. These ratios exclude variable account expenses that result in direct
  reductions in the unit values. The recognition of investment income by the
   subaccount is affected by the timing of the declaration of dividends by the
underlying fund in which the subaccounts invest.                        

(2) These ratios represent the annualized certificate expenses of the separate  
account, consisting primarily of mortality and expense charges, for each
 period indicated. The ratios include only those expenses that result in a
   direct reduction to unit values. Charges made directly to certificate owner
    accounts through the redemption of units and expenses of the underlying fund
are excluded.                                                           
(3) These amounts represent the total return for the periods indicated,         
including changes in the value of the underlying fund, and reflect      
deductions for all items included in the expense ratio. The total return
does not include any expenses assessed through the redemption of units; 
  inclusion of these expenses in the calculation would result in a reduction
    in the total return presented. The total return is calculated for the period
indicated.                                                              

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16 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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American Centurion Life Assurance Company                                       
--------------------------------------------------------------------------------

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM                         

THE BOARD OF DIRECTORS                                                          
AMERICAN CENTURION LIFE ASSURANCE COMPANY                                       

We have audited the accompanying Balance Sheets of American Centurion Life      
Assurance Company (a wholly-owned subsidiary of IDS Life Insurance Company) as  
of December 31, 2005 and 2004, and the related Statements of Income,            
Stockholder's Equity and Cash Flows for each of the three years in the period   
ended December 31, 2005. These financial statements are the responsibility of   
American Centurion Life Assurance Company's management. Our responsibility is to
express an opinion on these financial statements based on our audits.           

We conducted our audits in accordance with the standards of the Public Company  
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audits to obtain reasonable assurance about whether the         
financial statements are free of material misstatement. We were not engaged to  
perform an audit of the Company's internal control over financial reporting. Our
audits included consideration of internal control over financial reporting as a 
basis for designing audit procedures that are appropriate in the circumstances, 
but not for the purpose of expressing an opinion on the effectiveness of the    
Company's internal control over financial reporting. Accordingly, we express no 
such opinion. An audit also includes examining, on a test basis, evidence       
supporting the amounts and disclosures in the financial statements, assessing   
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our    
audits provide a reasonable basis for our opinion.                              

In our opinion, the financial statements referred to above present fairly, in   
all material respects, the financial position of American Centurion Life        
Assurance Company at December 31, 2005 and 2004, and the results of its         
operations and its cash flows for each of the three years in the period ended   
December 31, 2005, in conformity with U.S. generally accepted accounting        
principles.                                                                     

As discussed in Note 1 to the financial statements, in 2004 American Centurion  
Life Assurance Company adopted the provision of the American Institute of       
Certified Public Accountants Statement of Position 03-1, "Accounting and        
Reporting by Insurance Enterprises for Certain Nontraditional Long-Duration     
Contracts and for Separate Accounts."                                           

                                                 /s/ Ernst & Young LLP
                                                 ---------------------
                                                     Ernst & Young LLP

Minneapolis, Minnesota                                                          
February 27, 2006                                                               

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American Centurion Life Assurance Company                                       
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BALANCE SHEETS                                                                  

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DECEMBER 31, (THOUSANDS, EXCEPT SHARE DATA)                                                          2005           2004  
                                                                                                                          
ASSETS                                                                                                                    

Investments:                                                                                                              

Available-for-Sale:                                                                                                       
   Fixed maturities, at fair value (amortized cost: 2005, $536,780; 2004, $542,451)               $ 535,038       $558,381
   Preferred stocks, at fair value (cost: 2005, $0; 2004, $1,000)                                        --          1,041
Mortgage loans on real estate, at cost (less allowance for loan losses: 2005 and 2004, $920)         75,885         71,283
Trading securities and other investments                                                                 36             76
--------------------------------------------------------------------------------------------------------------------------
      Total investments                                                                             610,959        630,781

Cash and cash equivalents                                                                            14,512          5,808
Reinsurance recoverables                                                                              1,790          2,220
Amounts due from brokers                                                                                  5              8
Accrued investment income                                                                             6,640          6,729
Deferred policy acquisition costs                                                                    19,985         18,342
Deferred sales inducement costs                                                                       1,992          2,195
Deferred income tax assets, net                                                                         585             --
Other assets                                                                                          1,969            254
Separate account assets                                                                              73,790         55,034
--------------------------------------------------------------------------------------------------------------------------
      Total assets                                                                                $ 732,227       $721,371
==========================================================================================================================
LIABILITIES AND STOCKHOLDER'S EQUITY                                                                                      

Liabilities:                                                                                                              
Future policy benefits:                                                                                                   
   Fixed annuities                                                                                $ 563,651       $565,676
   Variable annuity guarantees                                                                           63             98
   Traditional life insurance                                                                         1,482          1,691
   Deferred income tax liabilities, net                                                                  --            971
Other liabilities                                                                                       522          1,975
Separate account liabilities                                                                         73,790         55,034
--------------------------------------------------------------------------------------------------------------------------
      Total liabilities                                                                           $ 639,508       $625,445
--------------------------------------------------------------------------------------------------------------------------

Stockholder's equity:                                                                                                     
   Capital stock, $10 par value;                                                                                          
      100,000 shares authorized, issued and outstanding                                               1,000          1,000
   Additional paid-in capital                                                                        56,600         56,600
   Retained earnings                                                                                 36,135         29,098
   Accumulated other comprehensive (loss) income, net of tax:                                                             
      Net unrealized securities (losses) gains                                                       (1,016)         9,228
--------------------------------------------------------------------------------------------------------------------------
      Total stockholder's equity                                                                     92,719         95,926
--------------------------------------------------------------------------------------------------------------------------
Total liabilities and stockholder's equity                                                        $ 732,227       $721,371
==========================================================================================================================

See accompanying Notes to Financial Statements.                                 

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American Centurion Life Assurance Company                                       
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STATEMENTS OF INCOME                                                            

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YEARS ENDED DECEMBER 31, (THOUSANDS)                       2005            2004         2003   
                                                                                               
REVENUES                                                                                       

Net investment income                                     $34,476        $33,875       $29,915 
Contractholder charges                                        670            663           489 
Mortality and expense risk and other fees                   1,047            673           339 
Traditional life insurance premiums                            --              1             1 
Net realized gain (loss) on investments                     1,941            274          (369)
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   Total revenues                                          38,134         35,486        30,375 
===============================================================================================

BENEFITS AND EXPENSES                                                                          

Interest credited to account values                        20,317         20,077        20,085 
Amortization of deferred policy acquisition costs           3,035          3,215         2,420 
Death and other benefits for investment contracts             586            439           (48)
Other operating expenses                                    2,624          2,221         2,300 
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   Total benefits and expenses                             26,562         25,952        24,757 
-----------------------------------------------------------------------------------------------
Income before income tax provision and accounting change   11,572          9,534         5,618 
Income tax provision                                        4,535          3,291         1,902 
-----------------------------------------------------------------------------------------------
Income before accounting change                             7,037          6,243         3,716 
Cumulative effect of accounting change, net of tax             --            (23)           -- 
-----------------------------------------------------------------------------------------------
Net income                                                $ 7,037        $ 6,220       $ 3,716 
===============================================================================================

See accompanying Notes to Financial Statements.                                 

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American Centurion Life Assurance Company                                       
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STATEMENTS OF CASH FLOWS                                                        

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YEARS ENDED DECEMBER 31, (THOUSANDS)                                                      2005            2004            2003   
                                                                                                                                 
CASH FLOWS FROM OPERATING ACTIVITIES                                                                                             

Net income                                                                             $   7,037       $   6,220       $   3,716 
Adjustments to reconcile net income to net cash provided by                                                                      
 operating activities:                                                                                                           
   Cumulative effect of accounting change, net of tax benefit                                 --              23              -- 
   Amortization of deferred policy acquisition costs                                       3,035           3,215           2,420 
   Amortization of deferred sales inducement costs                                           595             377             209 
   Capitalization of deferred policy acquisition costs                                    (2,947)         (3,950)         (5,880)
   Capitalization of deferred sales inducement costs                                        (169)           (808)           (596)
   Amortization of premium, net                                                            1,322           1,869             677 
   Deferred income taxes                                                                   3,960              29             875 
   Policyholder and contractholder charges, non-cash                                          --              --             283 
   Net realized (gain) loss on investments                                                (1,941)           (274)            369 
   Net realized gain on trading securities                                                    (2)             (2)             (1)
Change in operating assets and liabilities:                                                                                      
   Trading securities, net                                                                    42             (58)            (15)
   Future policy benefits for traditional life insurance                                    (209)            112             (66)
   Reinsurance recoverables                                                                  430             (95)             63 
   Accrued investment income                                                                  89            (770)         (1,118)
   Other assets and liabilities, net                                                      (3,192)            467            (479)
---------------------------------------------------------------------------------------------------------------------------------
      Net cash provided by operating activities                                            8,050           6,355             457 
---------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM INVESTING ACTIVITIES                                                                                             

Available-for-Sale securities:                                                                                                   
   Sales                                                                                  87,781          25,987          38,080 
   Maturities, sinking fund payments and calls                                            91,419          52,801          91,078 
   Purchases                                                                            (171,910)       (132,250)       (213,462)
Other investments:                                                                                                               
   Sales, maturities, sinking fund payments and calls                                      3,676           1,879           2,375 
   Purchases                                                                              (8,278)        (10,543)        (16,605)
   Change in amounts due to and from brokers, net                                              3           2,137         (17,557)
---------------------------------------------------------------------------------------------------------------------------------
      Net cash provided by (used in) investing activities                                  2,691         (59,989)       (116,091)
---------------------------------------------------------------------------------------------------------------------------------

CASH FLOWS FROM FINANCING ACTIVITIES                                                                                             

Activity related to investment contracts:                                                                                        
   Considerations received                                                                35,687          72,612         114,369 
   Interest credited to account values                                                    20,317          20,077          20,085 
   Surrenders and other benefits                                                         (58,041)        (55,801)        (38,855)
Capital contributions                                                                         --              --          20,000 
---------------------------------------------------------------------------------------------------------------------------------
      Net cash (used in) provided by financing activities                                 (2,037)         36,888         115,599 
---------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in cash and cash equivalents                                       8,704         (16,746)            (35)
Cash and cash equivalents at beginning of year                                             5,808          22,554          22,589 
---------------------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year                                               $  14,512       $   5,808       $  22,554 
=================================================================================================================================

Supplemental disclosures:                                                                                                        
   Income taxes paid                                                                   $   2,216       $   3,864       $     711 
   Interest on borrowings                                                                     --              --               6 

See accompanying Notes to Financial Statements                                  

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American Centurion Life Assurance Company                                       
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STATEMENTS OF STOCKHOLDER'S EQUITY                                              

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                                                                                            ADDITIONAL             ACCUMULATED OTHER
                                                                               CAPITAL       PAID-IN      RETAINED   COMPREHENSIVE  
FOR THE THREE YEARS ENDED DECEMBER 31, 2005 (THOUSANDS)         TOTAL           STOCK        CAPITAL      EARNINGS    INCOME/(LOSS) 
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
BALANCES AT DECEMBER 31, 2002                                  $ 69,302       $  1,000       $36,600      $19,162      $ 12,540     
Comprehensive income:                                                                                                               
   Net income                                                     3,716                                     3,716                   
   Change in unrealized holding losses on securities, net        (2,073)                                                 (2,073)    
                                                               ---------                                                            
   Total comprehensive income                                     1,643                                                             
Cash contribution from parent                                    20,000                       20,000                                
------------------------------------------------------------------------------------------------------------------------------------

Balances at December 31, 2003                                    90,945          1,000        56,600       22,878        10,467     
Comprehensive income:                                                                                                               
   Net income                                                     6,220                                     6,220                   
   Change in unrealized holding gains on securities, net         (1,239)                                                 (1,239)    
                                                               ---------                                                            
   Total comprehensive income                                     4,981                                                             
------------------------------------------------------------------------------------------------------------------------------------

Balances at December 31, 2004                                    95,926          1,000        56,600       29,098         9,228     
Comprehensive loss:                                                                                                                 
   Net income                                                     7,037                                                   7,037     
   Change in unrealized holding losses on securities, net       (10,244)                                                (10,244)    
                                                               ---------                                                            
   Total comprehensive loss                                      (3,207)                                                            
------------------------------------------------------------------------------------------------------------------------------------
Balances at December 31, 2005                                  $ 92,719       $  1,000       $56,600      $36,135      $ (1,016)    
====================================================================================================================================

See accompanying Notes to Financial Statements.                                 

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American Centurion Life Assurance Company                                       
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NOTES TO FINANCIAL STATEMENTS                                                   

1. NATURE OF BUSINESS, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT         
ACCOUNTING POLICIES                                                       

Nature of Business                                                              

American Centurion Life Assurance Company (American Centurion Life) is a stock  
life insurance company domiciled in New York, which holds Certificates of       
Authority in New York, Alabama and Delaware. American Centurion Life is a       
wholly-owned subsidiary of IDS Life Insurance Company (IDS Life), which is      
domiciled in Minnesota. IDS Life is a wholly-owned subsidiary of Ameriprise     
Financial, Inc. (Ameriprise Financial). American Centurion Life issues fixed and
variable annuity contracts primarily through financial institutions and         
independent broker-dealers. American Centurion Life also markets annuity        
products directly, generally to persons holding an American Express(R) Card.    

Prior to August 1, 2005, Ameriprise Financial was referred to as American       
Express Financial Corporation. On February 1, 2005 American Express Company     
(American Express) announced its intention to pursue the disposition of 100% of 
its shareholding in what is now Ameriprise Financial (the Separation) through a 
tax-free distribution to American Express shareholders. Effective as of the     
close of business on September 30, 2005, American Express completed the         
Separation and distribution of common shares to American Express shareholders   
(the Distribution). In connection with the Distribution, Ameriprise Financial   
entered into certain agreements with American Express to effect the separation  
of its business and to define the responsibility for obligations arising before 
and after the date of the Distribution, including, among others, obligations    
relating to transition services, taxes, and employees.                          

American Centurion Life's principal products are deferred annuities, which are  
issued primarily to individuals. It offers single premium and flexible premium  
deferred annuities on both a fixed and variable dollar basis. American Centurion
Life's fixed deferred annuities guarantee a minimum annual interest rate during 
the accumulation period (the time before annuity payments begin). However,      
American Centurion Life has the option of paying a higher rate set at its       
discretion.                                                                     

Under American Centurion Life's variable annuity products described above, the  
purchaser may choose among investment options that include American Centurion   
Life's "general account" and separate account investment options. Separate      
account options include accounts investing in common stocks, bonds, managed     
funds and/or short-term securities.                                             

Basis of Presentation                                                           

The accompanying Financial Statements have been prepared in conformity with     
United States generally accepted accounting principles (GAAP) which vary in     
certain respects from reporting practices prescribed or permitted by the New    
York Department of Insurance, as reconciled in Note 12. Certain prior year      
amounts have been reclassified to conform to the current year's presentation.   

The preparation of financial statements in conformity with GAAP requires        
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at   
the date of the financial statements and the reported amounts of revenues and   
expenses during the reporting period. Actual results could differ from those    
estimates.                                                                      

BALANCE SHEET                                                                   

INVESTMENTS                                                                     

Investments consist of the following:                                           

Available-for-Sale Securities                                                   

Available-for-Sale securities are carried at fair value on the Balance Sheets   
with unrealized gains (losses) recorded in accumulated other comprehensive      
income (loss) within equity, net of income tax provision (benefit) and net of   
adjustments in asset and liability balances, such as deferred policy acquisition
costs (DAC), to reflect the expected impact on their carrying values had the    
unrealized gains (losses) been realized as of the respective balance sheet date.
Gains and losses are recognized in results of operations upon disposition of the
securities. In addition, losses are also recognized when management determines  
that a decline in value is other-than-temporary, which requires judgment        
regarding the amount and timing of recovery. Indicators of other-than-temporary 
impairment for debt securities include issuer downgrade, default or bankruptcy. 
American Centurion Life also considers the extent to which amortized cost       
exceeds fair value, the duration of that difference, and management's judgment  
about the issuer's current and prospective financial condition, as well as its  
ability and intent to hold until recovery. Other-than-temporary impairment      
charges are recorded in net realized gains (losses) on investments within the   
Statements of Income. Fair value is generally based on quoted market prices.    

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American Centurion Life Assurance Company                                       
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Mortgage Loans on Real Estate, Net                                              

Mortgage loans on real estate reflect principal amounts outstanding less        
allowance for mortgage loan losses. The allowance for mortgage loan losses is   
measured as the excess of the loan's recorded investment over the present value 
of its expected principal and interest payments discounted at the loan's        
effective interest rate, or the fair value of collateral. Additionally, the     
level of the allowance for mortgage loan losses considers other factors,        
including historical experience and current economic and political conditions.  
Management regularly evaluates the adequacy of the allowance for mortgage loan  
losses and believes it is adequate to absorb estimated losses in the portfolio. 

American Centurion Life generally stops accruing interest on mortgage loans for 
which interest payments are delinquent more than three months. Based on         
management's judgment as to the ultimate collectibility of principal, interest  
payments received are either recognized as income or applied to the recorded    
investment in the loan.                                                         

Trading Securities and Other Investments                                        

Included in trading securities and other investments is separate account seed   
money. Separate account seed money is carried at fair market value with changes 
in value recognized in the Statements of Income within net investment income.   

CASH AND CASH EQUIVALENTS                                                       

American Centurion Life has defined cash equivalents to include highly liquid   
investments with original maturities of 90 days or less.                        

DEFERRED POLICY ACQUISITION COSTS                                               

DAC represents the costs of acquiring new business, principally direct sales    
commissions and other distribution and underwriting costs that have been        
deferred on the sale of annuity products. These costs are deferred to the extent
they are recoverable from future profits. For annuity products, DAC is amortized
over periods approximating the lives of the business, generally as a percentage 
of premiums or estimated gross profits or as a portion of product interest      
margins depending on the product's characteristics.                             

For American Centurion Life's annuity products, the DAC balances at any         
reporting date are supported by projections that show management expects there  
to be adequate estimated gross profits or interest margins after that date to   
amortize the remaining DAC balances. These projections are inherently uncertain 
because they require management to make assumptions about financial markets,    
anticipated mortality levels, and contractholder behavior over periods extending
well into the future. Projection periods used for American Centurion Life's     
annuity business are typically 10 to 25 years. Management regularly monitors    
financial market conditions and actual contractholder behavior experience and   
compares them to its assumptions. For annuity products, the assumptions made in 
projecting future results and calculating the DAC balances and DAC amortization 
expense are management's best estimates. Management is required to update these 
assumptions whenever it appears that, based on actual experience or other       
evidence, earlier estimates should be revised. When assumptions are changed, the
percentage of estimated gross profits or portion of interest margins used to    
amortize DAC may also change. A change in the required amortization percentage  
is applied retrospectively; an increase in amortization percentage will result  
in a decrease in DAC balances and an increase in DAC amortization expenses while
a decrease in amortization percentage will result in an increase in DAC balances
and a decrease in DAC amortization expenses. The impact on results of operations
of changing assumptions with respect to the amortization of DAC can be either   
positive or negative in any particular period and is reflected in the period in 
which such changes are made.                                                    

DEFERRED SALES INDUCEMENT COSTS                                                 

Deferred sales inducement costs (DSIC) consist of bonus interest credits and    
deposit credits added to certain annuity contract values. These benefits are    
capitalized to the extent they are incremental to amounts that would be credited
on similar contracts without the applicable feature. These costs were previously
included in DAC and were reclassified as part of the adoption of the American   
Institute of Certified Public Accountants (AICPA) Statement of Position 03-1,   
"Accounting and Reporting by Insurance Enterprises for Certain Nontraditional   
Long-Duration Contracts and for Separate Accounts" (SOP 03-1). The amounts      
capitalized are amortized using the same methodology and assumptions used to    
amortize DAC.                                                                   

SEPARATE ACCOUNT ASSETS AND LIABILITIES                                         

Separate account assets and liabilities are funds held for exclusive benefit of 
variable annuity contractholders. American Centurion Life receives mortality and
expense risk and other fees, including payments from its affiliate, RiverSource 
Investments, LLC for providing certain sponsor and related servicing activity,  
which are based on asset levels and guaranteed minimum death benefit (GMDB) fees
from the related accounts. In addition, American Centurion Life also receives   
marketing and administrative support payments from the affiliates of other      
companies' funds included as investment options in its variable annuity         
products, which vary based on the level of variable assets.                     

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American Centurion Life provides contractual mortality assurances to variable   
annuity contractholders that the net assets of the separate accounts will not be
affected by future variations in the actual life expectancy experience of the   
annuitants and beneficiaries from the mortality assumptions implicit in the     
annuity contracts. American Centurion Life makes periodic fund transfers to, or 
withdrawals from, the separate account assets for such actuarial adjustments for
variable annuities that are in the benefit payment period. American Centurion   
Life also guarantees that the rates at which administrative charges are deducted
from contract funds will not exceed contractual maximums.                       

LIABILITIES FOR FUTURE POLICY BENEFITS AND CLAIMS                               

Fixed Annuities and Variable Annuity Guarantees                                 

Liabilities for fixed and variable deferred annuities are equal to accumulation 
values which are the cumulative gross deposits, credited interest and fund      
performance less withdrawals and mortality and expense risk charges.            

The majority of the variable annuity contracts offered by American Centurion    
Life contain GMDB provisions. When market values of the customer's accounts     
decline, the death benefit payable on a contract with a GMDB may exceed the     
contract accumulation value. American Centurion Life also offers variable       
annuities with death benefit provisions that gross up the amount payable by a   
certain percentage of contract earnings. These are referred to as gain gross-up 
(GGU) benefits. In addition, American Centurion Life offers contracts containing
guaranteed minimum withdrawal benefit (GMWB), guaranteed minimum income benefit 
(GMIB) and guaranteed minimum accumulation benefit (GMAB) provisions.           

Effective January 1, 2004, liabilities for GMDB, GGU and GMIB benefits have been
established under SOP 03-1. Actuarial models to simulate various equity market  
scenarios are used to project these benefits and contract assessments and       
include making significant assumptions related to customer asset value growth   
rates, mortality, persistency and investment margins. These assumptions, as well
as their periodic review by management, are consistent with those used for DAC  
purposes. Prior to the adoption of SOP 03-1, amounts paid in excess of contract 
value were expensed when payable. See the "Recently Issued Accounting Standards"
section below and Note 4 for more information about these guaranteed benefits.  

GMWB and GMAB provisions are considered embedded derivatives under Statement of 
Financial Accounting Standards Board No. 133, "Accounting for Derivative        
Instruments and Hedging Activities" (SFAS 133) and, accordingly, are carried at 
fair value within future policy benefits for variable annuity guarantees on the 
Balance Sheets. The fair value of these embedded derivatives is based on the    
present value of future benefits less applicable fees charged for the provision.
Changes in fair value are reflected in death and other benefits for investment  
contracts within the Statements of Income.                                      

Liabilities for fixed annuities in a benefit or payout status are based on      
future estimated payments using established industry mortality tables and       
interest rates, ranging from 4.6% to 6.9% at December 31, 2005, depending on    
year of issue, with an average rate of approximately 5.4%.                      

REVENUES AND EXPENSES                                                           

American Centurion Life's principal sources of revenue include net investment   
income, contractholder charges and mortality and expense risk and other fees.   

Net Investment Income                                                           

Net investment income predominantly consists of interest income earned on fixed 
maturity securities classified as Available-for-Sale and mortgage loans on real 
estate. Interest income is accrued as earned using the effective interest       
method, which makes an adjustment of the yield for security premiums and        
discounts on all performing fixed maturity securities classified as             
Available-for-Sale and mortgage loans on real estate so that the related        
security or loan recognizes a constant rate of return on the outstanding balance
throughout its term.                                                            

Contractholder Charges                                                          

Contractholder charges include administrative and surrender charges on annuities
and are recognized as revenue when collected.                                   

Mortality and Expense Risk and Other Fees                                       

Mortality and expense risk and other fees include risk and administration fees, 
which are generated directly and indirectly from American Centurion Life's      
separate account assets. American Centurion Life's mortality and expense risk   
and other fees are generally computed as a contractual rate based on the        
underlying asset values and are generally received monthly.                     

Net Realized Gain (Loss) on Investments                                         

Realized gains and losses are recognized using the specific identification      
method, on a trade date basis, and charges are recorded when securities are     
determined to be other-than-temporarily impaired.                               

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Income Taxes                                                                    

American Centurion Life's taxable income is included in the consolidated federal
income tax return of American Express through September 30, 2005. American      
Centurion Life's taxable income will be included with IDS Life in filing a      
separate consolidated life insurance company federal income tax return for five 
tax years following the Distribution including the period October 1, 2005       
through December 31, 2005. American Centurion Life provides for income taxes on 
a separate return basis, except that, under an agreement with IDS Life, tax     
benefit is recognized for losses to the extent they can be used on the          
consolidated tax return. It is the policy of IDS Life that IDS Life will        
reimburse subsidiaries for all tax benefits.                                    

RECENTLY ISSUED ACCOUNTING STANDARDS                                            

On November 3, 2005, the Financial Accounting Standards Board (FASB) issued FASB
Staff Position (FSP) FAS 115-1 and FAS 124-1, "The Meaning of                   
Other-Than-Temporary Impairment and Its Application to Certain Investments." FSP
FAS 115-1 and FAS 124-1 address the determination as to when an investment is   
considered impaired, whether that impairment is other-than-temporary and the    
measurement of loss. It also includes accounting considerations subsequent to   
the recognition of an other-than-temporary impairment and requires certain      
disclosures about unrealized losses that have not been recognized as            
other-than-temporary impairments. FSP FAS 115-1 and FAS 124-1 are effective for 
reporting periods beginning after December 15, 2005. American Centurion Life    
anticipates the impact of FSP FAS 115-1 and FAS 124-1 on American Centurion     
Life's results of operations and financial condition will not be material.      

In September 2005, the AICPA issued Statement of Position 05-1, "Accounting by  
Insurance Enterprises for Deferred Acquisition Costs in Connection With         
Modifications or Exchanges of Insurance Contracts" (SOP 05-1). SOP 05-1 provides
guidance on accounting by insurance enterprises for DAC on internal replacements
of insurance and investment contracts other than those specifically described in
SFAS No. 97, "Accounting and Reporting by Insurance Enterprises for Certain     
Long-Duration Contracts and for Realized Gains and Losses from the Sale of      
Investments." SOP 05-1 is effective for internal replacements occurring in      
fiscal years beginning after December 15, 2006, with earlier adoption           
encouraged. American Centurion Life is currently evaluating the impact of SOP   
05-1 on American Centurion Life's results of operations and financial condition.

In May 2005, the FASB issued SFAS 154, "Accounting Changes and Error            
Corrections" (SFAS 154). This statement replaces APB Opinion No. 20, "Accounting
Changes," and SFAS No. 3, "Reporting Accounting Changes in Interim Financial    
Statements" and changes the requirements for the accounting for and reporting of
a change in accounting principle. SFAS 154 is effective for accounting changes  
and corrections of errors made in fiscal years beginning after December 15,     
2005. American Centurion Life does not anticipate SFAS 154 will materially      
impact its Financial Statements upon its adoption on January 1, 2006.           

In June 2004, the FASB issued FSP No. 97-1, "Situations in Which Paragraphs     
17(b) and 20 of FASB Statement No. 97, Accounting and Reporting by Insurance    
Enterprises for Certain Long-Duration Contracts and for Realized Gains and      
Losses from the Sale of Investments (SFAS No. 97), Permit or Require Accrual of 
an Unearned Revenue Liability" (FSP 97-1). The implementation of SOP 03-1 raised
a question regarding the interpretation of the requirements of SFAS No. 97      
concerning when it is appropriate to record an unearned revenue liability. FSP  
97-1 clarifies that SFAS No. 97 is clear in its intent and language, and        
requires the recognition of an unearned revenue liability for amounts that have 
been assessed to compensate insurers for services to be performed over future   
periods. SOP 03-1 describes one situation, when assessments result in profits   
followed by losses, where an unearned revenue liability is required. SOP 03-1   
does not amend SFAS No. 97 or limit the recognition of an unearned revenue      
liability to the situation described in SOP 03-1. The guidance in FSP 97-1 is   
effective for financial statements for fiscal periods beginning after June 18,  
2004. The adoption of FSP 97-1 did not have a material impact on American       
Centurion Life's results of operations or financial condition.                  

In July 2003, the AICPA issued SOP 03-1 effective for fiscal years beginning    
after December 15, 2003. SOP 03-1 provides guidance on separate account         
presentation and accounting for interests in separate accounts. Additionally,   
SOP 03-1 provides clarifying guidance as to the recognition of bonus interest   
and other sales inducement benefits and the presentation of any deferred amounts
in the financial statements. Lastly, SOP 03-1 requires insurance enterprises to 
establish additional liabilities for benefits that may become payable under     
variable annuity death benefit guarantees or other insurance or annuity contract
provisions. Where an additional liability is established, the recognition of    
this liability will then be considered in amortizing DAC and any DSIC associated
with those annuity contracts.                                                   

The adoption of SOP 03-1 as of January 1, 2004, resulted in a cumulative effect 
of accounting change that reduced 2004 results by $23 thousand ($36 thousand    
pretax). Prior to the adoption of SOP 03-1, amounts paid in excess of contract  
value were expensed when payable. Amounts expensed in 2004 to establish and     
maintain additional liabilities for certain variable annuity guaranteed benefits
amounted to $60 thousand as compared to amounts expensed in 2003 and 2002 of $34
thousand and $22 thousand, respectively. American Centurion Life's accounting   
for separate accounts was already consistent with the provisions of SOP 03-1    
and, therefore, there was no impact related to this requirement.                

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American Centurion Life Assurance Company                                       
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The AICPA released a series of technical practice aids (TPAs) in September 2004,
which provide additional guidance related to, among other things, the definition
of an insurance benefit feature and the definition of policy assessments in     
determining benefit liabilities, as described within SOP 03-1. The TPAs did not 
have a material effect on American Centurion Life's calculation of liabilities  
that were recorded in the first quarter of 2004 upon adoption of SOP 03-1.      

In January 2003, the FASB issued Interpretation No. 46, "Consolidation of       
Variable Interest Entities" (FIN 46), which addresses consolidation by business 
enterprises of variable interest entities (VIEs) and was subsequently revised in
December 2003. The determination as to whether an entity is a VIE is based on   
the amount and characteristics of the entity's equity. In general, FIN 46       
requires a VIE to be consolidated when an enterprise has a variable interest for
which it is deemed to be the primary beneficiary which means that it will absorb
a majority of the VIE's expected losses or receive a majority of the VIE's      
expected residual return.                                                       

The entities considered VIE's under FIN 46 included secured loan trusts (SLTs)  
for which American Centurion Life has a 1.2% ownership interest in each of two  
SLT structures (which were sold in 2005). The SLTs provided returns to investors
primarily based on the performance of an underlying portfolio of high-yield     
loans, which are managed by a related party. However, American Centurion Life   
was not required to consolidate the SLTs as it was not the primary beneficiary. 
As of December 31, 2004, American Centurion Life's pro rata interest in the     
underlying portfolio consisted of $12.4 million in high-yield loans, which have 
a market value of $12.5 million.                                                

2. INVESTMENTS                                                                  

AVAILABLE-FOR-SALE SECURITIES                                                   

Available-for-Sale securities at December 31, 2005 are distributed by type as   
presented below:                                                                

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------
                                                                          GROSS          GROSS               
                                                        AMORTIZED      UNREALIZED     UNREALIZED       FAIR  
(THOUSANDS)                                                COST           GAINS         LOSSES         VALUE 
-------------------------------------------------------------------------------------------------------------
                                                                                                             
Fixed maturities:                                                                                            
   Corporate debt securities                             $264,003        $ 4,492       $(3,581)      $264,914
   Mortgage and other asset-backed securities             196,738          1,215        (3,106)       194,847
   Foreign corporate bonds and obligations                 54,675            692          (937)        54,430
   U.S. Government and agencies obligations                20,364             --          (466)        19,898
   State and municipal obligations                          1,000             --           (51)           949
-------------------------------------------------------------------------------------------------------------
Total fixed maturities                                    536,780          6,399        (8,141)       535,038
-------------------------------------------------------------------------------------------------------------
   Total                                                 $536,780        $ 6,399       $(8,141)      $535,038
-------------------------------------------------------------------------------------------------------------

Available-for-Sale securities at December 31, 2004 are distributed by type as   
presented below:                                                                

                                                        [Enlarge/Download Table]

-------------------------------------------------------------------------------------------------------------
                                                                          GROSS          GROSS               
                                                        AMORTIZED      UNREALIZED     UNREALIZED       FAIR  
(THOUSANDS)                                                COST           GAINS         LOSSES         VALUE 
-------------------------------------------------------------------------------------------------------------
                                                                                                             
Fixed maturities:                                                                                            
   Corporate debt securities                             $255,507        $11,773       $  (541)      $266,739
   Mortgage and other asset-backed securities             201,972          3,940          (682)       205,230
   Foreign corporate bonds and obligations                 46,752          1,883          (221)        48,414
   U.S. Government and agencies obligations                22,008             72           (80)        22,000
   State and municipal obligations                          1,000             --           (36)           964
   Structured investments(a)                               15,212             --          (178)        15,034
-------------------------------------------------------------------------------------------------------------
Total fixed maturities                                    542,451         17,668        (1,738)       558,381
Preferred stocks                                            1,000             41            --          1,041
-------------------------------------------------------------------------------------------------------------
   Total                                                 $543,451        $17,709       $(1,738)      $559,422
-------------------------------------------------------------------------------------------------------------

(a) Includes unconsolidated collateralized debt obligations and SLTs.           

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American Centurion Life Assurance Company                                       
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At both December 31, 2005 and 2004, fixed maturity securities, excluding net    
unrealized appreciation and depreciation, comprised approximately 88% of        
American Centurion Life's total investments. These securities are rated by      
Moody's Investors Service, Inc. (Moody's) and Standard & Poor's (S&P), except   
for approximately $4.0 million and $7.5 million of securities at December 31,   
2005 and 2004, respectively, which are rated by RiverSource Investments, LLC's  
internal analysts using criteria similar to Moody's and S&P's. Ratings on       
investment grade securities are presented using S&P's convention and, if the two
agencies' ratings differ, the lower rating is used. A summary by rating         
(excluding net unrealized appreciation and depreciation) on December 31 is as   
follows:                                                                        

                                                        [Enlarge/Download Table]

Rating                                                                   2005         2004 
-------------------------------------------------------------------------------------------
                                                                                           
AAA                                                                        41%          42%
AA                                                                          6            3 
A                                                                          19           18 
BBB                                                                        26           29 
Below investment grade                                                      8            8 
-------------------------------------------------------------------------------------------
   Total                                                                 100%         100% 
-------------------------------------------------------------------------------------------

At December 31, 2005 and 2004, approximately 38% and 51%, respectively, of the  
securities rated AAA are GNMA, FNMA and FHLMC mortgage-backed securities. No    
holdings of any other issuer were greater than 10% of stockholder's equity.     

The following table provides information about Available-for-Sale securities    
with gross unrealized losses and the length of time that individual securities  
have been in a continuous unrealized loss position as of December 31, 2005:     

                                                        [Enlarge/Download Table]

(THOUSANDS)                                      LESS THAN 12 MONTHS          12 MONTHS OR MORE              TOTAL           
-----------------------------------------------------------------------------------------------------------------------------
                                                   FAIR      UNREALIZED       FAIR      UNREALIZED       FAIR      UNREALIZED
DESCRIPTION OF SECURITIES:                        VALUE        LOSSES        VALUE        LOSSES        VALUE         LOSSES 
-----------------------------------------------------------------------------------------------------------------------------
                                                                                                                             
Corporate debt securities                       $116,639      $(2,654)      $20,580      $  (927)      $137,219      $(3,581)
Mortgage and other asset-backed securities        89,000       (1,404)       45,293       (1,702)       134,293       (3,106)
Foreign corporate bonds and obligations           18,889         (573)        8,357         (364)        27,246         (937)
U.S. Government and agencies obligations          19,898         (466)           --           --         19,898         (466)
State and municipal obligations                      949          (51)           --           --            949          (51)
-----------------------------------------------------------------------------------------------------------------------------
   Total                                        $245,375      $(5,148)      $74,230      $(2,993)      $319,605      $(8,141)
-----------------------------------------------------------------------------------------------------------------------------

The following table provides information about Available-for-Sale securities    
with gross unrealized losses and the length of time that individual securities  
have been in a continuous unrealized loss position as of December 31, 2004:     

                                                        [Enlarge/Download Table]

(THOUSANDS)                                      LESS THAN 12 MONTHS          12 MONTHS OR MORE              TOTAL           
-----------------------------------------------------------------------------------------------------------------------------
                                                   FAIR      UNREALIZED       FAIR      UNREALIZED       FAIR      UNREALIZED
DESCRIPTION OF SECURITIES:                        VALUE        LOSSES        VALUE        LOSSES        VALUE         LOSSES 
-----------------------------------------------------------------------------------------------------------------------------
                                                                                                                             
Corporate debt securities                       $ 33,453      $  (266)      $ 9,232      $(275)      $ 42,685      $  (541)  
Mortgage and other asset-backed securities        67,901         (682)           --         --         67,901         (682)  
Foreign corporate bonds                            9,525          (80)        6,451       (141)        15,976         (221)  
U.S. Government and agencies obligations           9,887          (80)           --         --          9,887          (80)  
State and municipal obligations                       --           --           964        (36)           964          (36)  
Structured investments                                --           --        11,642       (178)        11,642         (178)  
-----------------------------------------------------------------------------------------------------------------------------
   Total                                        $120,766      $(1,108)      $28,289      $(630)      $149,055      $(1,738)  
-----------------------------------------------------------------------------------------------------------------------------

In evaluating potential other-than-temporary impairments, American Centurion    
Life considers the extent to which amortized costs exceeds fair value and the   
duration of that difference. A key metric in performing this evaluation is the  
ratio of fair value to amortized cost. The following table summarizes the       
unrealized losses by ratio of fair value to amortized cost as of December 31,   
2005:                                                                           

                                                        [Enlarge/Download Table]

(MILLIONS, EXCEPT                                                                                                                   
 NUMBER OF SECURITIES)                                                                                                              

                        LESS THAN 12 MONTHS                       12 MONTHS OR MORE                            TOTAL                
------------------------------------------------------------------------------------------------------------------------------------
RATIO OF                                      GROSS                                  GROSS                                  GROSS   
FAIR VALUE TO    NUMBER OF                 UNREALIZED   NUMBER OF                 UNREALIZED     NUMBER OF                UNREALIZED
AMORTIZED COST  SECURITIES    FAIR VALUE     LOSSES     SECURITIES   FAIR VALUE     LOSSES      SECURITIES   FAIR VALUE     LOSSES  
------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    
95% - 100%          183          $236          $(4)         39           $54         $(2)          222          $290          $(6)  
90% - 95%            22             7           (1)         11            20          (1)           33            27           (2)  
80% - 90%             5             2           --           1            --          --             6             2           --   
------------------------------------------------------------------------------------------------------------------------------------
   Total            210          $245          $(5)         51           $74         $(3)          261          $319          $(8)  
------------------------------------------------------------------------------------------------------------------------------------

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American Centurion Life Assurance Company                                       
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A majority of the gross unrealized losses related to corporate debt securities  
and substantially all of the gross unrealized losses related to mortgage and    
other asset-backed securities are attributable to changes in interest rates. A  
portion of the gross unrealized losses particularly related to corporate debt   
securities is also attributed to credit spreads and specific issuer credit      
events. As noted in the table above, a significant portion of the unrealized    
loss relates to securities that have a fair value to amortized cost ratio of 95%
or above resulting in an overall 98% ratio of fair value to amortized cost for  
all securities with an unrealized loss. From an overall perspective, the gross  
unrealized losses are not concentrated in any individual industries or with any 
individual securities. The largest unrealized loss associated with an individual
issuer, excluding GNMA, FNMA and FHLMC mortgage-backed securities, is $449      
thousand. The securities related to this issuer have a fair value to amortized  
cost ratio of 90%-95% and have been in an unrealized loss position for 12 months
or more.                                                                        

American Centurion Life monitors the investments and metrics discussed          
previously on a quarterly basis to identify and evaluate investments that have  
indications of possible other-than-temporary impairment. See the Investments    
section of Note 1 for information regarding American Centurion Life's policy for
determining when an investment's decline in value is other-than-temporary. As   
stated earlier, American Centurion Life's ongoing monitoring process has        
revealed that a significant portion of the gross unrealized losses on its       
Available-for-Sale securities are attributable to changes in interest rates.    
Additionally, American Centurion Life has the ability and intent to hold these  
securities for a time sufficient to recover its amortized cost and has,         
therefore, concluded that none are other-than-temporarily impaired at December  
31, 2005.                                                                       

The change in net unrealized securities gains (losses) recognized in accumulated
other comprehensive income includes three components, net of tax: (i) unrealized
gains (losses) that arose from changes in market value of securities that were  
held during the period (holding gains (losses)), (ii) gains (losses) that were  
previously unrealized, but have been recognized in current period net income due
to sales and other-than-temporary impairments of Available-for-Sale securities  
(reclassification of realized (gains) losses) and (iii) other items primarily   
consisting of adjustments in asset and liability balances, such as DAC and DSIC 
to reflect the expected impact on their carrying values had the unrealized gains
(losses) been realized as of the respective balance sheet dates.                

The following table presents these components of other comprehensive income     
(loss), net of tax:                                                             

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                                                2005          2004          2003  
-----------------------------------------------------------------------------------------------------------------------------
                                                                                                                             
Holding losses, net of tax of $5,520, $453, and $1,107, respectively                    $(10,252)      $  (841)      $(2,057)
Reclassification of realized gains, net of tax of $680, $96, and $95, respectively        (1,262)         (178)         (176)
DAC, net of tax of $606, $48 and $85, respectively                                         1,125           (89)          160 
DSIC, net of tax of $78, $70, and $0, respectively                                           145          (131)           -- 
-----------------------------------------------------------------------------------------------------------------------------
Net unrealized securities losses                                                        $(10,244)      $(1,239)      $(2,073)
-----------------------------------------------------------------------------------------------------------------------------

The following is a distribution of Available-for-Sale securities by maturity as 
of December 31, 2005:                                                           

                                                        [Enlarge/Download Table]

                                                                         AMORTIZED      FAIR  
(THOUSANDS)                                                                COST         VALUE 
----------------------------------------------------------------------------------------------
                                                                                              
Due within 1 year                                                       $ 15,151      $ 15,327
Due after 1 through 5 years                                               96,096        97,239
Due after 5 through 10 years                                             205,609       204,684
Due after 10 years                                                        23,186        22,941
----------------------------------------------------------------------------------------------
                                                                         340,042       340,191
Mortgage and other asset-backed securities                               196,738       194,847
----------------------------------------------------------------------------------------------
Total                                                                   $536,780      $535,038
----------------------------------------------------------------------------------------------

The expected payments on mortgage and other asset-backed securities may not     
coincide with their contractual maturities. As such, these securities were not  
included in the maturities distribution.                                        

The table below includes sales, maturities, and purchases of investments        
classified as Available-for-Sale for the years ended December 31:               

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                2005            2004          2003 
----------------------------------------------------------------------------------------------
                                                                                              
Sales                                                    $ 87,781       $ 25,987      $ 38,080
Maturities, sinking fund payments and calls              $ 91,419       $ 52,801      $ 91,078
Purchases                                                $171,910       $132,250      $213,462
----------------------------------------------------------------------------------------------

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American Centurion Life Assurance Company                                       
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Included in net realized gains and losses were gross realized gains and losses  
on sales of securities, as well as other-than-temporary losses on investments,  
classified as Available-for-Sale, using the specific identification method, as  
noted in the following table for the years ended December 31:                   

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                2005            2004          2003  
-----------------------------------------------------------------------------------------------
                                                                                               
Gross realized gains from sales                            $2,474          $ 474       $ 2,817 
Gross realized losses from sales                           $ (435)         $(200)      $(1,219)
Other-than-temporary impairments                           $  (98)         $  --       $(1,327)
-----------------------------------------------------------------------------------------------

The $1.3 million of other-than-temporary impairments in 2003 consisted of $0.4  
million related to corporate debt securities and $0.9 million related to        
American Centurion Life's interests in a CDO securitization trust which was sold
in 2005 as discussed below.                                                     

During the second quarter of 2005, American Centurion Life sold all of its      
retained interest in the CDO-related securitization trust and realized a net    
pretax gain of $1.0 million. The carrying value of this retained interest was   
$11.6 million at December 31, 2004, of which $8.6 million was considered        
investment grade.                                                               

At December 31, 2005 and 2004, bonds carried at $1.0 million were on deposit    
with the State of New York as required by law.                                  

MORTGAGE LOANS ON REAL ESTATE, NET                                              

The following is a summary of mortgage loans on real estate at December 31:     

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                                2005         2004   
-----------------------------------------------------------------------------------------------
                                                                                               
Mortgage loans on real estate                                            $76,805       $72,203 
Less: allowance for loan losses                                             (920)         (920)
-----------------------------------------------------------------------------------------------
Net mortgage loans                                                       $75,885       $71,283 
-----------------------------------------------------------------------------------------------

Mortgage loans are first mortgages on real estate. American Centurion Life holds
the mortgage documents, which gives it the right to take possession of the      
property if the borrower fails to perform according to the terms of the         
agreements. Mortgage loan fundings are restricted by state insurance regulatory 
authorities to 80% or less of the market value of the real estate at the time of
origination of the loan. Commitments to fund mortgages are made in the ordinary 
course of business. The estimated fair value of the mortgage commitments as of  
December 31, 2005 and 2004 was not material.                                    

At December 31, 2005 and 2004, American Centurion Life's recorded investment in 
impaired mortgage loans on real estate was nil. During 2005 and 2004, the       
average recorded investment in impaired mortgage loans on real estate was nil.  
American Centurion Life recognized nil of interest income related to impaired   
mortgage loans on real estate for the years ended December 31, 2005, 2004 and   
2003.                                                                           

The balances of and changes in the total allowance for mortgage loan losses as  
of and for the years ended December 31, are as follows:                         

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                  2005           2004          2003 
-----------------------------------------------------------------------------------------------
                                                                                               
Balance, beginning of year                                   $920           $920          $278 
Provision for mortgage loan losses                             --             --           642 
-----------------------------------------------------------------------------------------------
Balance, end of year                                         $920           $920          $920 
-----------------------------------------------------------------------------------------------

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American Centurion Life Assurance Company                                       
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Concentration of credit risk of mortgage loans on real estate by region at      
December 31 were:                                                               

                                                        [Enlarge/Download Table]

(THOUSANDS)                                      2005                               2004             
-----------------------------------------------------------------------------------------------------
                                      ON BALANCE         FUNDING        ON BALANCE           FUNDING 
REGION                                   SHEET         COMMITMENTS         SHEET          COMMITMENTS
-----------------------------------------------------------------------------------------------------
                                                                                                     
South Atlantic                       $    17,215       $        --      $    16,154       $        --
Mountain                                  15,566             1,700           15,937                --
Pacific                                   14,104                --           12,687                --
West North Central                         8,039                --            8,302                --
East North Central                         7,519                --            4,241                --
Middle Atlantic                            4,764                --            4,892                --
East South Central                         3,974                --            2,748                --
West South Central                         3,902                --            5,465                --
New England                                1,722                --            1,777                --
-----------------------------------------------------------------------------------------------------
                                          76,805             1,700           72,203                --
Less: allowance for loan losses             (920)               --             (920)               --
-----------------------------------------------------------------------------------------------------
       Total                         $    75,885       $     1,700      $    71,283       $        --
-----------------------------------------------------------------------------------------------------

Concentration of credit risk of mortgage loans on real estate by property type  
at December 31 were:                                                            

                                                        [Enlarge/Download Table]

(THOUSANDS)                                      2005                               2004             
-----------------------------------------------------------------------------------------------------
                                      ON BALANCE         FUNDING         ON BALANCE         FUNDING  
PROPERTY TYPE                            SHEET         COMMITMENTS          SHEET         COMMITMENTS
-----------------------------------------------------------------------------------------------------
                                                                                                     
Industrial buildings                 $    24,496       $        --      $    19,821       $        --
Office buildings                          24,335                --           25,079                --
Department/retail stores                  19,361                --           18,180                --
Medical buildings                          3,460             1,700            2,398                --
Mixed use                                  2,671                --            4,175                --
Apartments                                 2,482                --            2,550                --
-----------------------------------------------------------------------------------------------------
                                          76,805             1,700           72,203                --
Less: allowance for loan losses             (920)               --             (920)               --
-----------------------------------------------------------------------------------------------------
       Total                         $    75,885       $     1,700      $    71,283       $        --
-----------------------------------------------------------------------------------------------------

SOURCES OF INVESTMENT INCOME AND REALIZED GAINS (LOSSES) ON INVESTMENTS         

Net investment income for the years ended December 31 is summarized as follows: 

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                 2005              2004           2003    
-----------------------------------------------------------------------------------------------------
                                                                                                     
Income on fixed maturities                               $29,098           $28,702        $25,649    
Income on mortgage loans on real estate                    4,835             4,615          4,278    
Trading securities and other investments                     956               726            358    
-----------------------------------------------------------------------------------------------------
                                                          34,889            34,043         30,285    
Less: investment expenses                                    413               168            370    
-----------------------------------------------------------------------------------------------------
   Total                                                 $34,476           $33,875        $29,915    
-----------------------------------------------------------------------------------------------------

Net realized gains (losses) on investments for the years ended December 31 is   
summarized as follows:                                                          

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                 2005              2004           2003    
-----------------------------------------------------------------------------------------------------
                                                                                                     
Fixed maturities                                          $1,941              $274         $ 271     
Mortgage loans on real estate                                 --                --          (642)    
Other investments                                             --                --             2     
-----------------------------------------------------------------------------------------------------
   Total                                                  $1,941              $274         $(369)    
-----------------------------------------------------------------------------------------------------

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American Centurion Life Assurance Company                                       
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3. DEFERRED POLICY ACQUISITION COSTS AND DEFERRED SALES INDUCEMENT COSTS        

The balances of and changes in DAC as of and for the years ended December 31,   
were:                                                                           

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                                                2005           2004           2003   
--------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                
Balance, beginning of year                                                               $ 18,342       $ 17,744       $ 14,039 
Capitalization of acquisition costs                                                         2,947          3,950          5,880 
Amortization, excluding impact of changes in assumptions                                   (3,335)        (3,215)        (2,720)
Amortization, impact of annual third quarter changes in DAC-related assumptions               300             --            300 
Impact of changes in net unrealized securities losses (gains)                               1,731           (137)           245 
--------------------------------------------------------------------------------------------------------------------------------
Balance, end of year                                                                     $ 19,985       $ 18,342       $ 17,744 
--------------------------------------------------------------------------------------------------------------------------------

The balances of and changes in DSIC as of and for the years ended December 31,  
were:                                                                           

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                           2005          2004          2003                          
--------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                
Balance, beginning of year                                         $ 2,195       $ 1,965       $ 1,578                          
Capitalization of sales inducements                                    169           808           596                          
Amortization                                                          (595)         (377)         (209)                         
Impact of changes in net unrealized securities losses (gains)          223          (201)           --                          
--------------------------------------------------------------------------------------------------------------------------------
Balance, end of year                                               $ 1,992       $ 2,195       $ 1,965                          
--------------------------------------------------------------------------------------------------------------------------------

4. VARIABLE ANNUITY GUARANTEES                                                  

This note discusses variable annuity guarantees for which liabilities are       
established under SOP 03-1, specifically GMDB and GMIB. See Note 9 for more     
information about guarantees for which liabilities are established under SFAS   
133, specifically GMWB and GMAB.                                                

The majority of the variable annuity contracts offered by American Centurion    
Life contain GMDB provisions. When market values of the customer's accounts     
decline, the death benefit payable on a contract with a GMDB may exceed the     
contract accumulation value. If elected by the contract owner and after a       
stipulated waiting period from contract issuance, a GMIB guarantees a minimum   
lifetime annuity based on a specified rate of contract accumulation value growth
and predetermined annuity purchase rates. American Centurion Life has           
established additional liabilities for these variable annuity death benefits and
GMIB provisions.                                                                

The variable annuity death benefit liability is determined each period by       
estimating the expected value of death benefits in excess of the projected      
contract accumulation value and recognizing the excess over the estimated       
meaningful life based on expected assessments (e.g., mortality and expense fees,
contractual administrative charges and similar fees). Similarly, the GMIB       
liability is determined each period by estimating the expected value of         
annuitization benefits in excess of the projected contract accumulation value at
the date of annuitization and recognizing the excess over the estimated         
meaningful life based on expected assessments.                                  

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American Centurion Life Assurance Company                                       
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In determining the additional liabilities for variable annuity death benefits   
and GMIB, American Centurion Life projects these benefits and contract          
assessments using actuarial models to simulate various equity market scenarios. 
Significant assumptions made in projecting future benefits and assessments      
relate to customer asset value growth rates, mortality, persistency and         
investment margins and are consistent with those used for DAC asset valuation   
for the same contracts. As with DAC, management will review, and where          
appropriate, adjust its assumptions each quarter. Unless management identifies a
material deviation over the course of quarterly monitoring, management will     
review and update these assumptions annually in the third quarter of each year. 

The following provides summary information related to variable annuity contracts
for which American Centurion Life has established additional liabilities for    
death benefits and GMIB as of December 31:                                      

                                                        [Enlarge/Download Table]

---------------------------------------------------------------------------------------------------------------------------
VARIABLE ANNUITY GMDB AND GMIB BY BENEFIT TYPE                                                                             
(DOLLARS IN THOUSANDS)                                                                                  2005         2004  
---------------------------------------------------------------------------------------------------------------------------
                                                                                                                           
Contracts with GMDB Providing for Return of Premium           Total Contract Value                     $23,563      $15,068
                                                              Contract Value in Separate Accounts      $15,960      $ 6,966
                                                              Net Amount at Risk*                      $   184      $   175
                                                              Weighted Average Attained Age                 61           61
---------------------------------------------------------------------------------------------------------------------------
Contracts with GMDB Providing for One Year Ratchet            Total Contract Value                     $70,767      $66,312
                                                              Contract Value in Separate Accounts      $54,861      $48,018
                                                              Net Amount at Risk*                      $   848      $ 1,420
                                                              Weighted Average Attained Age                 62           61
---------------------------------------------------------------------------------------------------------------------------
Contracts with Other GMDB                                     Total Contract Value                     $ 3,682      $    --
                                                              Contract Value in Separate Accounts      $ 2,886      $    --
                                                              Net Amount at Risk*                      $   280      $    --
                                                              Weighted Average Attained Age                 73           --
---------------------------------------------------------------------------------------------------------------------------
Contracts with GMIB                                           Total Contract Value                     $29,212      $23,785
                                                              Contract Value in Separate Accounts      $25,584      $20,002
                                                              Net Amount at Risk*                      $     8      $    --
                                                              Weighted Average Attained Age                 58           55
---------------------------------------------------------------------------------------------------------------------------

* Represents current death benefit less total contract value for GMDB and       
  accumulated guaranteed minimum benefit base less total contract value for GMIB
 and assumes the actuarially remote scenario that all claims become payable on
the same day.                                                               

                                                        [Enlarge/Download Table]

--------------------------------------------------------------------------------------------------------
ADDITIONAL LIABILITIES AND INCURRED BENEFITS                                                  GMDB & GGU
--------------------------------------------------------------------------------------------------------
                                                                                                        
For the year ended December 31, 2005        Liability balance at January 1                        $ 98  
                                            Reported claims                                       $ 11  
                                            Liability balance at December 31                      $ 26  
                                            Incurred claims (reported + change in liability)      $(61) 
--------------------------------------------------------------------------------------------------------

The additional liabilities for guaranteed benefits established under SOP 03-1   
are supported by general account assets. Changes in these liabilities are       
included in death and other benefits in the Statements of Income.               

Contract values in separate accounts were invested in various equity, bond and  
other funds as directed by the contractholder. No gains or losses were          
recognized on assets transferred to separate accounts for the periods presented.

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American Centurion Life Assurance Company                                       
--------------------------------------------------------------------------------

5. INCOME TAXES                                                                 

American Centurion Life qualifies as a life insurance company for federal income
tax purposes. As such, American Centurion Life is subject to the Internal       
Revenue Code provisions applicable to life insurance companies.                 

Provisions (benefits) for income taxes were:                                    

                                                        [Enlarge/Download Table]

(THOUSANDS)                                          2005          2004        2003  
-------------------------------------------------------------------------------------
                                                                                     
Federal income tax:                                                                  
   Current                                         $  (193)      $2,949      $ 1,053 
   Deferred                                          3,960           29          875 
-------------------------------------------------------------------------------------
Total federal income taxes                           3,767        2,978        1,928 
State income taxes-current                             768          313          (26)
-------------------------------------------------------------------------------------
Income tax provision before accounting change      $ 4,535       $3,291      $ 1,902 
-------------------------------------------------------------------------------------

The principal reasons that the aggregate income tax provision is different from 
that computed by using the U.S. statutory rate of 35% are as follows:           

                                                        [Enlarge/Download Table]

                                                            2005              2004           2003 
--------------------------------------------------------------------------------------------------
                                                                                                  
Tax at U.S. statutory rate                                  35.0%             35.0%          35.0%
Changes in taxes resulting from:                                                                  
   Tax-exempt interest and dividend income                  (0.4)             (0.2)          (0.4)
   State income taxes, net of federal benefit                4.3               2.2           (0.3)
   Other, net                                                0.3              (2.5)          (0.5)
--------------------------------------------------------------------------------------------------
Income tax provision before accounting change               39.2%             34.5%          33.8%
--------------------------------------------------------------------------------------------------

Deferred income tax assets and liabilities result from temporary differences    
between the assets and liabilities measured for U.S. GAAP reporting versus      
income tax return purposes. The significant components of American Centurion    
Life's deferred income tax assets and liabilities as of December 31, 2005 and   
2004 are reflected in the following table:                                      

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                         2005         2004   
--------------------------------------------------------------------------------------- 
                                                                                        
Deferred income tax assets:                                                             
   Policy reserves                                                 $4,062      $  4,276 
   Other investments                                                2,175         5,460 
   Deferred taxes related to net securities unrealized losses         547            -- 
   Other                                                               33           652 
--------------------------------------------------------------------------------------- 
Total deferred income tax assets                                    6,817        10,388 
--------------------------------------------------------------------------------------- 

Deferred income tax liabilities:                                                        
   Deferred policy acquisition costs                                4,971         4,845 
   Deferred taxes related to net securities unrealized gains           --         4,969 
   Other                                                            1,261         1,545 
--------------------------------------------------------------------------------------- 
Total deferred income tax liabilities                               6,232        11,359 
--------------------------------------------------------------------------------------- 
Deferred income tax assets (liabilities), net                      $  585      $   (971)
--------------------------------------------------------------------------------------- 

A portion of American Centurion Life's income earned prior to 1984 was not      
subject to current taxation but was accumulated, for tax purposes, in a         
"policyholders' surplus account." At December 31, 2005, American Centurion Life 
had a policyholder's surplus account balance of $1.1 million. The American Jobs 
Creation Act of 2004 which was enacted on October 22, 2004 provides a two-year  
suspension of the tax on policyholders' surplus account distributions.          
Previously the policyholders' surplus account was only taxable if dividends to  
shareholders exceeded the shareholders' surplus account and/or American         
Centurion Life is liquidated. Deferred taxes of $0.4 million have not been      
established as distributions of the policyholder's surplus account balance are  
contemplated in 2006.                                                           

American Centurion Life is required to establish a valuation allowance for any  
portion of the deferred income tax assets that management believes will not be  
realized. Included in American Centurion Life's deferred tax assets is a        
significant deferred tax asset relating to capital losses realized for tax      
return purposes and capital losses that have been recognized for financial      
statement purposes but not yet for tax return purposes. Under current U.S.      
federal income tax law, capital losses generally must be used against capital   
gain income within five years of the year in which the capital losses are       
recognized for tax purposes. American Centurion Life has $5.1 million in capital
loss carryforwards that expire December 31, 2009. The deferred tax benefit of   
these capital loss carryforwards is reflected in the other investments deferred 
tax assets, net of other related items. Based on analysis of American Centurion 
Life's tax position, management believes it is more likely than not that the    
results of future operations and implementation of tax planning strategies will 
generate sufficient taxable income to enable American Centurion Life to utilize 
all of its deferred tax assets. Accordingly, no valuation allowance for deferred
tax assets has been established as of December 31, 2005 and 2004.               

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American Centurion Life Assurance Company                                       
--------------------------------------------------------------------------------

As a result of the separation of Ameriprise Financial from American Express,    
American Centurion Life will be required to file a short period income tax      
return through September 30, 2005 which will be included as part of the American
Express consolidated income tax return for the year ended December 31, 2005.    
Additionally, IDS Life and subsidiaries will not be able to file a consolidated 
U.S. federal income tax return with other members of the Ameriprise Financial   
affiliated group for five tax years following the Distribution. Therefore,      
American Centurion Life will also be required to file a separate short period   
tax return as part of an IDS Life life insurance company income tax return for  
the period October 1, 2005 through December 31, 2005.                           

The items comprising other comprehensive income (loss) in the Statements of     
Stockholder's Equity are presented net of the following income tax benefit      
amounts:                                                                        

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                 2005              2004           2003 
--------------------------------------------------------------------------------------------------
                                                                                                  
Net unrealized securities losses                          $5,516              $667         $1,117 
--------------------------------------------------------------------------------------------------
Net income tax benefit                                    $5,516              $667         $1,117 
--------------------------------------------------------------------------------------------------

6. STATUTORY CAPITAL AND SURPLUS                                                

Dividends which exceed the lesser or ten percent of statutory surplus as of the 
immediately preceding year-end, or statutory net gain from operations for the   
immediately preceding calendar year would require pre-notification to the       
Department of Insurance of the State of New York, who has the authority to      
disapprove and prevent payment thereof. American Centurion Life's statutory     
surplus, determined in accordance with accounting practices prescribed by the   
State of New York, aggregated $56.1 million and $48.5 million as of December 31,
2005 and 2004, respectively. Dividends exceeding $5.6 million in 2006 would be  
subject to the pre-notification requirement.                                    

Statutory net income for the years ended December 31 and capital and surplus as 
of December 31 are summarized as follows:                                       

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                 2005              2004           2003 
--------------------------------------------------------------------------------------------------
                                                                                                  
Statutory net income                                     $ 7,353           $ 7,768       $(11,745)
Statutory capital and surplus                             57,095            49,550         42,904 

American Centurion Life is subject to regulatory capital requirements. Actual   
capital, determined on a statutory basis, as of December 31, 2005 and 2004 was  
$61.7 million and $53.4 million, respectively. Actual capital, as defined by the
National Association of Insurance Commissioners for purposes of meeting         
regulatory capital requirements, includes statutory capital and surplus, plus   
certain statutory valuation reserves. The regulatory capital requirement was    
$12.7 million and $13.8 million as of December 31, 2005 and 2004, respectively. 

7. RELATED PARTY TRANSACTIONS                                                   

American Centurion Life participates in the Ameriprise Financial Retirement Plan
which covers all permanent employees age 21 and over who have met certain       
employment requirements. Company contributions to the plan are based on         
participants' age, years of service and total compensation for the year. Funding
of retirement costs for this plan complies with the applicable minimum funding  
requirements specified by ERISA. American Centurion Life's share of the total   
net periodic pension cost was $6 thousand in 2005, $4 thousand in 2004, and $5  
thousand in 2003.                                                               

American Centurion Life also participates in the defined contribution pension   
plans of Ameriprise Financial which cover all employees who have met certain    
employment requirements. Company contributions to the plans are a percent of    
either each employee's eligible compensation or basic contributions. Costs of   
these plans charged to operations in 2005, 2004 and 2003 were $17 thousand, $13 
thousand and $25 thousand, respectively.                                        

Charges by IDS Life and Ameriprise Financial for use of joint facilities,       
technology support, marketing services and other services aggregated $3.8       
million, $2.6 million, and $3.0 million for 2005, 2004 and 2003, respectively.  
Certain of these costs are included in DAC. Expenses allocated to IDS Life may  
not be reflective of expenses that would have been incurred by IDS Life on a    
stand-alone basis.                                                              

Included in other liabilities at December 31, 2005 and 2004 are $1.1 million and
$474 thousand, respectively, payable to IDS Life for federal income taxes.      

8. REINSURANCE                                                                  

American Centurion Life has an agreement whereby it ceded 100% of a block of    
individual life insurance and individual annuities to an unaffiliated company.  
At December 31, 2005, 2004 and 2003, traditional life insurance in force        
aggregated $85.1 million, $97.2 million and $105.4 million, respectively, of    
which $85.0 million, $97.1 million and $105.3 million, was reinsured at the     
respective year ends. Under all reinsurance agreements, premiums ceded to       
reinsurers amounted to $1.1 million, $1.2 million and $1.1 million and          
reinsurance recovered from reinsurers amounted to $307 thousand, $610 thousand  
and $920 thousand, for the years ended December 31, 2005, 2004 and 2003,        
respectively. Reinsurance contracts do not relieve American Centurion Life from 
its primary obligation to policyholders. Life insurance in force is reported on 
a statutory basis.                                                              

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American Centurion Life Assurance Company                                       
--------------------------------------------------------------------------------

9. DERIVATIVE FINANCIAL INSTRUMENTS                                             

Embedded Derivatives                                                            

Certain annuities contain GMWB and GMAB provisions, which are also considered   
embedded derivatives. The changes in fair value of the GMWB and GMAB features   
are recognized in death and other benefits for investment contracts. The fair   
value of the embedded options for GMWB and GMAB is recognized in future policy  
benefits for variable annuity guarantees in the Balance Sheets. The total fair  
value of these instruments was $35 thousand and nil at December 31, 2005 and    
2004, respectively.                                                             

10. FAIR VALUE OF FINANCIAL INSTRUMENTS                                         

The following table discloses fair value information for financial instruments. 
Certain items, such as life insurance obligations, employee benefit obligations,
investments accounted for under the equity method, DAC and DSIC are not         
reflected in the table as they are not required to be disclosed in such table by
SFAS No. 107, "Disclosure about Fair Value of Financial Instruments." The fair  
values of financial instruments are estimates based upon market conditions and  
perceived risks at December 31, 2005 and 2004 and require management judgment to
estimate such values. These figures may not be indicative of future fair values.
Additionally, management believes the value of excluded assets and liabilities  
is significant. The fair value of American Centurion Life, therefore, cannot be 
estimated by aggregating the amounts presented herein. The following table      
discloses carrying value and fair value information for financial instruments at
December 31:                                                                    

                                                        [Enlarge/Download Table]

                                                                      2005                         2004         
----------------------------------------------------------------------------------------------------------------
                                                             CARRYING         FAIR        CARRYING        FAIR  
(THOUSANDS)                                                    VALUE          VALUE         VALUE         VALUE 
----------------------------------------------------------------------------------------------------------------
                                                                                                                
FINANCIAL ASSETS                                                                                                
Assets for which carrying values approximate fair values      $ 14,512      $ 14,512      $  5,808      $  5,808
Available-for-Sale securities                                  535,038       535,038       559,422       559,422
Mortgage loans on real estate, net                              75,885        80,365        71,283        77,127
Trading securities                                                  36            36            76            76
Separate account assets                                         73,790        73,790        55,034        55,034

FINANCIAL LIABILITIES                                                                                           
Fixed annuity reserves                                        $562,034      $551,818      $564,282      $551,784
Separate account liabilities                                    73,790        71,232        55,034        52,957
Derivative financial instruments                                   341           341           174           174
----------------------------------------------------------------------------------------------------------------

As of December 31, 2005 and 2004, the carrying and fair values of off-balance   
sheet financial instruments are not material. See Note 2 for carrying and fair  
value information regarding Available-for-Sale securities and mortgage loans on 
real estate (net of allowance for loan losses). The following methods were used 
to estimate the fair values of financial assets and financial liabilities:      

FINANCIAL ASSETS                                                                

Assets for which carrying values approximate fair values include cash and cash  
equivalents. The carrying value approximates fair value due to the short-term   
nature of these instruments.                                                    

Available-for-Sale securities are carried at fair value in the Balance Sheets.  
Gains and losses are recognized in the results of operations upon disposition.  
In addition, impairment losses are recognized when management determines that a 
decline in value is other-than-temporary.                                       

The fair value of mortgage loans on real estate, except those with significant  
credit deterioration, are estimated using discounted cash flow analysis, based  
on current interest rates for loans with similar terms to borrowers of similar  
credit quality. For loans with significant credit deterioration, fair values are
based on estimates of future cash flows discounted at rates commensurate with   
the risk inherent in the revised cash flow projections, or for collateral       
dependent loans, on collateral values.                                          

Trading securities are carried at fair value in the Balance Sheets with changes 
in fair value recognized in current period earnings.                            

Separate account assets are carried at fair value in the Balance Sheets.        

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American Centurion Life Assurance Company                                       
--------------------------------------------------------------------------------

FINANCIAL LIABILITIES                                                           

Fair values of fixed annuities in deferral status are estimated as the          
accumulated value less applicable surrender charges. For annuities in payout    
status, fair value is estimated using discounted cash flows based on current    
interest rates. The fair value of these reserves excludes life insurance related
elements of $1.6 million and $1.4 million as of December 31, 2005 and 2004,     
respectively. If the fair value of the fixed annuities were realized, the       
surrender charges received would be offset by the write off of the DAC and DSIC 
associated with the fixed annuities of $14.1 million and $16.7 million as of    
December 31, 2005 and 2004, respectively.                                       

Fair values of separate account liabilities are estimated as the accumulated    
value less applicable surrender charges. If the fair value of the separate      
account liabilities were realized, the surrender charges received would be      
offset by the write off of the DAC and DSIC associated with separate account    
liabilities of $7.7 million and $5.6 million as of December 31, 2005 and 2004,  
respectively.                                                                   

Derivative financial instruments are carried at fair value within other         
liabilities. The fair value of the derivative financial instruments are         
determined using either market quotes or valuation models that are based upon   
the net present value of estimated future cash flows and incorporate current    
market data inputs.                                                             

11. COMMITMENTS AND CONTINGENCIES                                               

At December 31, 2005 and 2004, American Centurion Life had no commitments to    
purchase investments other than mortgage loan fundings (see Note 2).            

The Securities and Exchange Commission, the National Association of Securities  
Dealers and several state authorities have brought proceedings challenging      
several mutual fund and variable product financial practices, generally         
including suitability, late trading, market timing, compensation and disclosure 
of revenue sharing arrangements. American Centurion Life has received requests  
for information and has been contacted by regulatory authorities concerning its 
practices and is cooperating fully with these inquiries.                        

American Centurion Life is involved in a number of other legal and arbitration  
proceedings concerning matters arising in connection with the conduct of its    
business activities. American Centurion Life believes that it is not a party to,
nor are any of its properties the subject of, any pending legal, arbitration or 
regulatory proceedings that would have a material adverse effect on its         
financial condition, results of operations or liquidity. However, it is possible
that the outcome of any such proceedings could have a material impact on results
of operations in any particular reporting period as the proceedings are         
resolved.                                                                       

The IRS routinely examines American Centurion Life's federal income tax returns 
and recently completed its audit of American Centurion Life for the 1993 through
1996 tax years. The IRS is currently conducting an audit of American Centurion  
Life for the 1997 through 2002 tax years. Management does not believe there will
be a material adverse effect on American Centurion Life's financial condition or
results of operations as a result of these audits.                              

12. STATUTORY INSURANCE ACCOUNTING PRACTICES                                    

Reconciliations of net income for the years ended December 31 and stockholder's 
equity at December 31, as shown in the accompanying financial statements, to    
that determined using statutory accounting practices are as follows:            

                                                        [Enlarge/Download Table]

(THOUSANDS)                                                         2005            2004          2003   
---------------------------------------------------------------------------------------------------------
                                                                                                         
Net income, per accompanying financial statements                 $  7,037       $  6,220       $  3,716 
Deferred policy acquisition costs                                       88           (687)        (3,618)
Adjustments of future policy benefit liabilities                    (1,373)          (236)       (11,953)
Deferred income tax expense                                          3,960          2,907            875 
Interest maintenance reserves loss transfer and amortization        (1,483)          (535)        (1,306)
Deferred surrender charge                                            1,679            (37)           (68)
Other, net                                                          (2,555)           136            609 
---------------------------------------------------------------------------------------------------------
Statutory-basis net income (loss)                                 $  7,353       $  7,768       $(11,745)
---------------------------------------------------------------------------------------------------------

(THOUSANDS)                                                           2005           2004           2003 
---------------------------------------------------------------------------------------------------------
Stockholder's equity, per accompanying financial statements       $ 92,719       $ 95,926       $ 90,945 
Deferred policy acquisition costs                                  (19,985)       (18,342)       (17,744)
Deferred sales inducements                                          (1,992)        (2,195)        (1,965)
Adjustments of future policy benefit liabilities                   (13,072)        (9,643)        (9,983)
Adjustments of reinsurance ceded reserves                           (1,790)        (2,220)        (2,125)
Deferred income tax liabilities                                       (196)         4,245          2,519 
Asset valuation reserve                                             (4,653)        (3,888)        (2,762)
Net unrealized loss (gain) on investments                            2,663        (15,051)       (16,618)
Other, net                                                           3,401            718            637 
---------------------------------------------------------------------------------------------------------
Statutory-basis capital and surplus                               $ 57,095       $ 49,550       $ 42,904 
---------------------------------------------------------------------------------------------------------

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18 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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19 - ACL VARIABLE ANNUITY ACCOUNT 1                                             

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                                                                 S-6313 D (5/06)

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PART C.                                                                         

Item 24. Financial Statements and Exhibits                                      

(a)      Financial Statements included in Part B of this Registration Statement:

ACL Variable Annuity Account 1                                

         Report of Independent Registered Public Accounting Firm dated March 31,
2006.                                                         
Statements of Assets and Liabilities as of Dec. 31, 2005.     
Statements of Operations for the year ended Dec. 31, 2005.    
       Statements of Changes in Net Assets for the years ended Dec. 31, 2005
and 2004.                                                     

Notes to Financial Statements.                                

American Centurion Life Assurance Company:                    

        Report of Independent Registered Public Accounting Firm dated Feb. 27,
2006.                                                         
Balance Sheets as of Dec. 31, 2005 and 2004.                  
        Statements of Income for the years ended Dec. 31, 2005, 2004 and 2003.
      Statements of Cash Flows for the years ended Dec. 31, 2005, 2004 and
2003.                                                         
       Statements of Stockholder's Equity for the three years ended Dec. 31,
2005.                                                         

Notes to Financial Statements.                                

(b)      Exhibits:                                                              

1.       Certificate, establishing the ACL Variable Annuity Account 1 dated     
     December 1, 1995, filed electronically as Exhibit 1 to Registrant's
         Initial Registration Statement No. 333-00041, is incorporated herein by
reference.                                                    

2.       Not Applicable.                                                        

3.       Variable Annuity and Life Insurance Distribution and Administrative    
      Services Agreement, dated April 10, 1997, is filed electronically as
       Exhibit 3 to Post-Effective Amendment No. 2 to Registration Statement
No. 333-00041, is incorporated herein by reference.           

4.1      Form of Group Deferred Annuity Certificate for nonqualified contract   
(form 38502-NY 10/95), filed electronically as Exhibit 4.1 to 
Registrant's Initial Registration Statement No. 333-00041, is 
incorporated herein by reference.                             

4.2      Form of Group Deferred Annuity Certificate for qualified contract (form
38503-IRA-NY 10/95), filed electronically as Exhibit 4.2 to   
Registrant's Initial Registration Statement No. 333-00041, is 
incorporated herein by reference.                             

4.3      Form of Group Deferred Annuity Contract (form 38501 10/95), filed      
    electronically as Exhibit 4.3 to Registrant's Initial Registration
Statement No. 333-00041, is incorporated herein by reference. 

4.4      Form of Traditional IRA or SEP-IRA Annuity Endorsement (form 272170    
        12/02) filed electronically as Exhibit 4.4 to Post-Effective Amendment
         No. 8 to Registration Statement No. 333-00041 is incorporated herein by
reference.                                                    

5.1      Form of Group Deferred Variable Annuity Application (form 32041 10/95),
filed electronically as Exhibit 5.1 to Registrant's Initial   
 Registration Statement No. 333-00041, is incorporated herein by
reference.                                                    

5.2      Form of Variable Annuity Participant Enrollment Form (form 32027C      
     10/95), filed electronically as Exhibit 5.2 to Registrant's Initial
 Registration Statement No. 333-00041, is incorporated herein by
reference.                                                    

6.1      Amended and Restated Articles of Incorporation of American Centurion   
   Life, filed electronically as Exhibit 6.1 to Registrant's Initial
 Registration Statement No. 333-00041, is incorporated herein by
reference.                                                    

6.2      Amended By-Laws of American Centurion Life, filed electronically as    
Exhibit 6.2 to Registrant's Initial Registration Statement No.
333-00041, is incorporated herein by reference.               

6.3      Emergency By-Laws of American Centurion Life, filed electronically as  
Exhibit 6.3 to Registrant's Initial Registration Statement No.
333-00041, is incorporated herein by reference.               

6.4      Amended and Restated By-Laws of American Centurion Life Assurance      
         Company filed electronically as Exhibit 6.4 to the Initial Registration
  Statement No. 333-101051, filed on or about February 6, 2003, is
incorporated herein by reference.                             

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7.       Not Applicable.                                                        

8.1      Participation Agreement, dated Oct. 7, 1996, by and among American     
Centurion Life and Warburg Pincus Trust and Warburg, Pincus   
Counsellors, Inc. and Counsellors Securities, Inc., filed     
    electronically as Exhibit 8.1 to Post-Effective Amendment No. 2 to
 Registration Statement No. 333-00041, is incorporated herein by
reference.                                                    

8.2      Fund Participation Agreement, dated July 31, 1996, by and among        
      American Centurion Life, TCI Portfolios, Inc. and Investors Research
    Corporation, filed electronically as Exhibit 8.2 to Post-Effective
Amendment No. 2 to Registration Statement No. 333-00041, is   
incorporated herein by reference.                             

8.3      Fund Participation Agreement, dated Oct. 23, 1996, between Janus Aspen 
         Series and American Centurion Life, filed electronically as Exhibit 8.3
 to Post-Effective Amendment No. 2 to Registration Statement No.
333-00041, is incorporated herein by reference.               

8.4      Participation Agreement, dated Dec. 4, 1996, among INVESCO Variable    
Investment Funds, Inc., INVESCO Funds Group, Inc. and American
       Centurion Life, filed electronically as Exhibit 8.4 to Post-Effective
Amendment No. 2 to Registration Statement No. 333-00041, is   
incorporated herein by reference.                             

9.       Opinion of counsel and consent to its use as to the legality of the    
securities being registered is filed electronically herewith. 

10.      Consent of Independent Registered Public Accounting Firm is filed      
electronically herewith.                                      

11.      None.                                                                  

12.      Not Applicable.                                                        

13.1     Power of Attorney to sign Amendments to this Registration Statement,   
dated Oct. 21, 2005, is filed electronically herewith.        

13.2     Power of Attorney to sign Amendments to this Registration Statement,   
dated July 7, 2004, filed electronically as Exhibit 13.2 to   
         Post-Effective Amendment No. 10 to Registration Statement No. 333-00041
is incorporated by reference.                                 

                                                        [Enlarge/Download Table]

Item 25. Directors and Officers of the Depositor (American Centurion Life Assurance Company)                                 

Name                            Principal Business Address*                  Positions and Offices with Depositor            
------------------------------- -------------------------------------------- ------------------------------------------      
                                                                                                                             
Gumer C. Alvero                 1765 Ameriprise Financial Center             Director, Vice President -                      
                                Minneapolis, MN 55474                        Annuities                                       

Timothy V. Bechtold             249 Ameriprise Financial Center              Director, President and Chief                   
                                Minneapolis, MN 55474                        Executive Officer                               

Walter S. Berman                                                             Vice President and Treasurer                    

Maureen A. Buckley              20 Madison Ave. Extension                    Director, Vice President, Chief                 
                                P.O. Box 5555                                Operating Officer, Consumer Affairs             
                                Albany, NY  12205-0555                       Officer, Claims Officer and Anti-Money Laudering
                                                                             Officer                                         

Rodney P. Burwell               Xerxes Corporation                           Director                                        
                                7901 Xerxes Ave. So.                                                                         
                                Suite 201                                                                                    
                                Bloomington, MN 55431-1253                                                                   
Richard N. Bush                 172 Ameriprise Financial Center              Senior Vice President - Corporate Tax           
                                Minneapolis, MN 55474                                                                        

Robert R. Grew                  Carter, Ledyard & Milburn                    Director                                        
                                2 Wall Street                                                                                
                                New York, NY  10005-2072                                                                     

Martin T. Griffin               172 Ameriprise Financial Center              Director                                        
                                Minneapolis, MN 55474                                                                        

Ronald L. Guzior                Bollam, Sheedy, Torani                       Director                                        
                                & Co. LLP CPA's                                                                              
                                26 Computer Drive West                                                                       
                                Albany, NY 12205                                                                             

Gregory C. Johnson                                                           Director                                        

Michelle M. Keeley              257 Ameriprise Financial Center              Vice President - Investments                    
                                Minneapolis, MN 55474                                                                        

Jean B. Keffeler                3820 Grand Way Apt. 409                      Director                                        
                                Saint Louis Park, MN  55416                                                                  

Eric L. Marhoun                 50605 Ameriprise Financial Center            General Counsel                                 
                                Minneapolis, MN  55474                                                                       

Thomas R. McBurney              4900 IDS Center                              Director                                        
                                80 South Eighth Street                                                                       
                                Minneapolis, MN  55402                                                                       

Jeryl A. Millner                138 Ameriprise Financial Center              Director                                        
                                Minneapolis, MN 55474                                                                        

Mary Ellyn Minenko              50607 Ameriprise Financial Center            Counsel and Assistant Secretary                 
                                Minneapolis, MN 55474                                                                        

Thomas W. Murphy                264 Ameriprise Financial Center              Vice President - Investments                    
                                Minneapolis, MN 55474                                                                        

Thomas V. Nicolosi              Suite 220                                    Director                                        
                                500 Mamaroneck Avenue                                                                        
                                Harrison, NY  10528                                                                          

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Julie A. Ruether                                                             Chief Compliance Officer, Assistant Secretary   

David K. Stewart                                                             Vice President and Controller                   

Heather M. Somers                                                            Assistant General Counsel and                   
                                                                             Assistant Secretary                             

Beth E. Weimer                                                               Chief Compliance Officer -                      
                                                                             Insurance Special Accounts                      

Michael R. Woodward             32 Ellicot St.                               Director                                        
                                Suite 100                                                                                    
                                Batavia, NY  14020                                                                           

*    Unless otherwise noted, the principal business address is 70100 Ameriprise 
Financial Center, Minneapolis, MN 55474.                              

                                                        [Enlarge/Download Table]

Item 26. Persons Controlled by or Under Common Control with the Depositor or Registrant (Continued)              

The following list includes the names of major subsidiaries of Ameriprise Financial, Inc.                        

                                                                                        Jurisdiction of          
Name of Subsidiary                                                                      Incorporation            

                                                                                                                 
Ameriprise Financial Services Inc.                                                        Delaware               
            American Express Financial Advisors Japan Inc.                                Delaware               
            American Express Management Company S.A.                                      Luxembourg             
Ameriprise Trust Company                                                                  Minnesota              
IDS Life Insurance Company                                                                Minnesota              
            IDS REO 1, LLC                                                                Minnesota              
            IDS REO 2, LLC                                                                Minnesota              
            American Partners Life Insurance Company                                      Arizona                
            IDS Life Insurance Company of New York                                        New York               
            American Enterprise Life Insurance Company                                    Indiana                
                       American Enterprise REO 1, LLC                                     Minnesota              
            American Centurion Life Assurance Company                                     New York               
            RiverSource Tax Advantaged Investments, Inc.                                  Delaware               
                       AEXP Affordable Housing Portfolio LLC                              Delaware               
Ameriprise Certificate Company                                                            Delaware               
            Investors Syndicate Development Corp.                                         Nevada                 
            American Express International Deposit Company                                Cayman Islands         
American Express Insurance Agency of Alabama Inc.                                         Alabama                
American Express Insurance Agency of Arizona Inc.                                         Arizona                
American Express Insurance Agency of Idaho Inc.                                           Idaho                  
American Express Insurance Agency of Indiana Inc.                                         Indiana                
American Express Insurance Agency of Massachusetts Inc.                                   Massachusetts          
American Express Insurance Agency of New Mexico Inc.                                      New Mexico             
American Express Insurance Agency of Texas Inc.                                           Texas                  
IDS Insurance Agency of Utah Inc.                                                         Utah                   
American Express Insurance Agency of Wyoming Inc.                                         Wyoming                
American Express Insurance Agency of Maryland Inc.                                        Maryland               
American Express Insurance Agency of Oklahoma Inc.                                        Oklahoma               
American Express Insurance Agency of Nevada Inc.                                          Nevada                 
RiverSource Investments LLC                                                               Minnesota              
            Advisory Capital Strategies Group Inc.                                        Minnesota              
            American Express Asset Management International (Japan) Inc.                  Japan                  
                       Advisory Capital Partners LLC                                      Delaware               
                       Advisory Select LLC                                                Delaware               
                       Boston Equity General Partner LLC                                  Delaware               
                       Advisory Quantitative Equity (General Partner) LLC                 Delaware               
                       Advisory Credit Opportunities GP LLC                               Delaware               
                       Advisory European (General Partner) Inc.                           Cayman Islands         
                       Advisory Convertible Arbitrage LLC                                 Delaware               
            Kenwood Capital Management LLC (51.1% owned)                                  Delaware               
            IDS Capital Holdings Inc.                                                     Minnesota              
American Express Asset Management International Inc.                                      Delaware               
American Express Asset Management Ltd.                                                    England                
IDS Management Corporation                                                                Minnesota              
            IDS Partnership Services Corporation                                          Minnesota              
            IDS Cable Corporation                                                         Minnesota              
            IDS Futures Corporation                                                       Minnesota              
            IDS Realty Corporation                                                        Minnesota              
            IDS Cable II Corporation                                                      Minnesota              

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IDS Property Casualty Insurance Company                                                   Wisconsin              
            Amex Assurance Company                                                        Illinois               
            Ameriprise Auto & Home Insurance Agency, Inc.                                 Wisconsin              
American Enterprise Investment Services Inc.                                              Minnesota              
American Express Property Casualty Insurance Agency of Kentucky Inc.                      Kentucky               
RiverSource Service Corporation                                                           Minnesota              
American Express Property Casualty Insurance Agency of Maryland Inc.                      Maryland               
American Express Property Casualty Insurance Agency of Mississippi Inc.                   Mississippi            
American Express Property Casualty Insurance Agency of Pennsylvania Inc.                  Pennsylvania           
AEFA (Jersey) Limited                                                                     Jersey, Channel Islands
Channel Islands                                                                                                  
Securities America Financial Corporation                                                  Nebraska               
            Realty Assets, Inc.                                                           Nebraska               
            Securities America Advisors, Inc.                                             Nebraska               
            Securities America, Inc.                                                      Nebraska               
American Express Asset Management (Australia) Limited                                     Australia              
Threadneedle Asset Management Holdings Ltd.                                               England                
            Threadneedle Investments (Channel Islands) Ltd.                               Jersey, Channel Islands
Channel Islands                                                                                                  
            Threadneedle Asset Management Ltd.                                            England                
            Threadneedle Portfolio Services Ltd.                                          England                
            Threadneedle Postfolio Managers Ltd.                                          England                
            Threadneedle Investment Services Ltd.                                         England                
            Threadneedle Asset Management (Nominees) Ltd.                                 England                
            Threadneedle Investment Services GMbH                                         Germany                
            Threadneedle Investment Advisors Ltd.                                         England                
            Threadneedle International Fund Management Ltd.                               England                
            MM Asset Management Ltd.                                                      England                
            Eagle Star ISA Manager Ltd.                                                   England                
            Eagle Star Unit Managers Ltd.                                                 England                
            ADT Nominees Ltd.                                                             England                
            Threadneedle International Ltd.                                               England                
            Threadneedle Management Services Ltd.                                         England                
                       Threadneedle Rural Property Services Ltd.                          England                
                       Threadneedle Property Services Ltd.                                England                
            Threadneedle Pensions Ltd.                                                    England                
            Threadneedle Property GP Holdings Ltd.                                        England                
            Threadneedle Property Investments Ltd.                                        England                
                       Sackville TCI Property (GP) Ltd.                                   England                
                       Sackville TCI Property Nominee (1) Ltd.                            England                
                       Sackville TCI Property Nominee (2) Ltd.                            England                
                       Sackville Property (GP) Ltd.                                       England                
                       Sackville Tandem Property (GP) Ltd.                                England                
                                  Sackville Tandem Property Nominee Ltd.                  England                
                       Sackville TPEN Property (GP) Ltd.                                  England                
                                  Sackville TPEN Property Nominee Ltd.                    England                
                                  Sackville TPEN Property Nominee (2) Ltd.                England                
                       Sackville TSP Property (GP) Ltd.                                   England                
                                  Sackville TSP Property Nominee Ltd.                     England                
                       JDM3                                                               California             
            Cornbrash Park Management Company Ltd.                                        England                
            Highcross (Slough) Management Ltd.                                            England                
            Threadneedle Financial Services Ltd.                                          England                
            Threadneedle Pension Trustees Ltd.                                            England                
Sloan Financial Group                                                                     North Carolina         
Ameriprise Insurance Company                                                              Wisconsin              
RiverSource Distributors, Inc.                                                            Delaware               
Ameriprise India Private Limited                                                          India                  

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Item 27. Number of Contract owners                                              

    As of March 31, 2006, there were 3 certificate owners of qualified
        certificates and 110 certificate owners of non-qualified certificates.

Item 28. Indemnification                                                        

The amended and restated By-Laws of the depositor provide that the depositor    
will indemnify, to the fullest extent now or hereafter provided for or permitted
by law, each person involved in, or made or threatened to be made a party to,   
any action, suit, claim or proceeding, whether civil or criminal, including any 
investigative, administrative, legislative, or other proceeding, and including  
any action by or in the right of the depositor or any other corporation, or any 
partnership, joint venture, trust, employee benefit plan, or other enterprise   
(any such entity, other than the depositor, being hereinafter referred to as an 
"Enterprise"), and including appeals therein (any such action or process being  
hereinafter referred to as a "Proceeding"), by reason of the fact that such     
person, such person's testator or intestate (i) is or was a director or officer 
of the depositor, or (ii) is or was serving, at the request of the depositor, as
a director, officer, or in any other capacity, or any other Enterprise, against 
any and all judgments, amounts paid in settlement, and expenses, including      
attorney's fees, actually and reasonably incurred as a result of or in          
connection with any Proceeding, except as provided below.                       

No indemnification will be made to or on behalf of any such person if a judgment
or other final adjudication adverse to such person establishes that such        
person's acts were committed in bad faith or were the result of active and      
deliberate dishonesty and were material to the cause of action so adjudicated,  
or that such person personally gained in fact a financial profit or other       
advantage to which such person was not legally entitled. In addition, no        
indemnification will be made with respect to any Proceeding initiated by any    
such person against the depositor, or a director or officer of the depositor,   
other than to enforce the terms of this indemnification provision, unless such  
Proceeding was authorized by the Board of Directors of the depositor. Further,  
no indemnification will be made with respect to any settlement or compromise of 
any Proceeding unless and until the depositor has consented to such settlement  
or compromise.                                                                  

The depositor may, from time to time, with the approval of the Board of         
Directors, and to the extent authorized, grant rights to indemnification, and to
the advancement of expenses, to any employee or agent of the depositor or to any
person serving at the request of the depositor as a director or officer, or in  
any other capacity, of any other Enterprise, to the fullest extent of the       
provisions with respect to the indemnification and advancement of expenses of   
directors and officers of the depositor.                                        

Insofar as indemnification for liability arising under the Securities Act of    
1933 (the "Act") may be permitted to directors, officers and controlling persons
of the depositor or the registrant pursuant to the foregoing provisions, or     
otherwise, the registrant has been advised that in the opinion of the Securities
and Exchange Commission such indemnification is against public policy as        
expressed in the Act and is, therefore, unenforceable. In the event that a claim
for indemnification against such liabilities (other than the payment by the     
registrant of expenses incurred or paid by a director, officer or controlling   
person of the registrant in the successful defense of any action, suit or       
proceeding) is asserted by such director, officer or controlling person in      
connection with the securities being registered, the registrant will, unless in 
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such         
indemnification by it is against public policy as expressed in the Act and will 
be governed by the final adjudication of such issue.                            

                                                        [Enlarge/Download Table]

Item 29. Principal Underwriters.                                                                       

(a)  Ameriprise Financial Services, Inc. acts as principal underwriter for the                         
     following investment companies:                                                                   

        AXP California Tax-Exempt Trust; AXP Dimensions Series, Inc.; AXP                              
        Discovery Series, Inc.; AXP Equity Series, Inc.; AXP Fixed Income                              
        Series, Inc.; AXP Global Series, Inc.; AXP Government Income Series,                           
        Inc.; AXP Growth Series, Inc.; AXP High Yield Income Series, Inc.; AXP                         
        High Yield Tax-Exempt Series, Inc.; AXP Income Series, Inc.; AXP                               
        International Series, Inc.; AXP Investment Series, Inc.; AXP Managed                           
        Series, Inc.; AXP Market Advantage Series, Inc.; AXP Money Market                              
        Series, Inc.; AXP Partners Series, Inc.; AXP Partners International                            
        Series, Inc.; AXP Progressive Series, Inc.; AXP Sector Series, Inc.; AXP                       
        Selected Series, Inc.; AXP Special Tax-Exempt Series Trust; AXP Stock                          
        Series, Inc.; AXP Strategy Series, Inc.; AXP Tax-Exempt Series, Inc.;                          
        AXP Tax-Free Money Series, Inc.; Growth Trust; Growth and Income Trust;                        
        Income Trust; World Trust; Ameriprise Certificate Company; Advisory                            
        Hedged Opportunity Fund.                                                                       

(b)  As to each director, officer or partner of the principal underwriter:                             

         Name and Principal                        Position and Offices with                           
         Business Address*                         Underwriter                                         
                                                                                                       
         Gumer C. Alvero                           Vice President - General                            
                                                   Manager Annuities                                   

         Ward D. Armstrong                         Senior Vice President -                             
                                                   Retirement Services and                             
                                                   Riversource Investments                             

         John M. Baker                             Vice President - Chief                              
                                                   Client Service Officer                              

         Timothy V. Bechtold                       Vice President -                                    
                                                   Insurance Products                                  

         Arthur H. Berman                          Senior Vice President and Treasurer                 

         Walter S. Berman                          Director                                            

         Robert C. Bloomer                         Vice President - Technologies III                   

         Leslie H. Bodell                          Vice President - Technologies I                     

         Rob Bohli                                 Group Vice President -                              
         10375 Richmond Avenue #600                South Texas                                         
         Houston, TX 77042                                                                             

         Walter K. Booker                          Group Vice President -                              
         61 South Paramus Road                     New Jersey                                          
         Mack-Cali Office Center IV,                                                                   
         3rd Floor                                                                                     
         Paramus, NJ 07652                                                                             

         Bruce J. Bordelon                         Group Vice President -                              
         1333 N. California Blvd.,                 Northern California                                 
         Suite 200                                                                                     
         Walnut Creek, CA 94596                                                                        

         Randy L. Boser                            Vice President - Mutual Fund                        
                                                   Business Development                                

         Richard N. Bush                           Senior Vice President -                             
                                                   Corporate Tax                                       

         Uzma S. Burki                             Vice President - Organizational                     
                                                   & Talent Development                                

         Kenneth J. Ciak                           Vice President and                                  
         IDS Property Casualty                     General Manager - IDS                               
         1400 Lombardi Avenue                      Property Casualty                                   
         Green Bay, WI 54304                                                                           

         Paul A. Connolly                          Vice President - RL HR/US Retail                    

         James M. Cracchiolo                       Director, Chairman of the Board                     
                                                   and Chief Executive Officer                         

         Colleen Curran                            Vice President and                                  
                                                   Assistant General Counsel                           

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         Luz Maria Davis                           Vice President - Employee                           
                                                   Communications                                      

         Scott M. DiGiammarino                     Group Vice President -                              
         Suite 500, 8045 Leesburg                  Washington D.C./Baltimore                           
         Pike                                                                                          
         Vienna, VA 22182                                                                              

         Paul James Dolan                          Vice President - CAO Product Sales                  

         Kenneth Dykman                            Group Vice President -                              
         625 Kenmor Ave South East                 Greater Michigan                                    
         Suite 301                                                                                     
         Grand Rapids, MI 49546                                                                        

         William V. Elliot                         Vice President - Financial                          
                                                   Planning and Advice                                 

         William J. Emptage                        Vice President - Strategic Planning                 

         Benjamin R. Field                         Vice President - Finanace                           
                                                   Education and Planning Services                     

         Gordon M. Fines                           Vice President - Senior                             
                                                   Portfolio Manager I                                 

         Giunero Floro                             Vice President - Creative                           
                                                   Services                                            

         Terrence J. Flynn                         Vice President - Brokerage                          
                                                   Clearing Operations                                 

         Jeffrey P. Fox                            Vice President - Investment                         
                                                   Accounting                                          

         Peter A. Gallus                           Vice President - CAO - Investment                   
                                                   Management                                          

         Laura C. Gagnon                           Vice President - Investor Relations                 

         Gary W. Gassmann                          Group Vice President -                              
         2677 Central Park Boulevard               Detroit Metro                                       
         Suite 350                                                                                     
         Southfield, MN 48076                                                                          

         John C. Greiber                           Group Vice President -                              
                                                   Minnesota/Iowa                                      

         Martin T. Griffin                         Vice President and National Sales                   
                                                   Manager External Channel                            

         Steven Guida                              Vice President -                                    
                                                   New Business and Service                            

         Teresa A. Hanratty                        Senior Vice President -                             
         Suites 6&7                                Field Management                                    
         169 South River Road                                                                          
         Bedford, NH 03110                                                                             

         Janis K. Heaney                           Vice President -                                    
                                                   Incentive Management                                

         Brian M. Heath                            Director, President                                 
         Suite 150                                                                                     
         801 E. Campbell Road                                                                          
         Richardson, TX 75081                                                                          

         Jon E. Hjelm                              Group Vice President -                              
         655 Metro Place South                     Ohio Valley                                         
         Suite 570                                                                                     
         Dublin, OH 43017                                                                              

         David X. Hockenberry                      Group Vice President -                              
         830 Crescent Centre Drive                 Mid South                                           
         Suite 490                                                                                     
         Franklin, TN 37067-7217                                                                       

         Kelli A. Hunter                           Executive Vice President -                          
                                                   Human Resources                                     

         Debra A. Hutchinson                       Vice President - Technologies I                     

         Theodore M. Jenkin                        Group Vice President -                              
         6000 Freedom Square Drive                 Steel Cities                                        
         Suite 300                                                                                     
         Cleveland, OH 44131                                                                           

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         James M. Jensen                           Vice President -                                    
                                                   Compensation and Licensing                          
                                                   Services                                            

         Gregory C. Johnson                        Group Vice President -                              
         4 Atrium Drive, #100                      Upstate New York/Vermont                            
         Albany, NY 12205                                                                              

         Jody M. Johnson                           Group Vice President -                              
                                                   Twin Cities Metro                                   

         Nancy E. Jones                            Vice President - Advisor                            
                                                   Marketing                                           

         William A. Jones                          Vice President - Technologies III                   

         John C. Junek                             Senior Vice President and                           
                                                   General Counsel                                     

         Ora J. Kaine                              Vice President -                                    
                                                   Retail Distribution Services                        

         Michelle M. Keeley                        Senior Vice President -                             
                                                   Fixed Income                                        

         Raymond G. Kelly                          Group Vice President -                              
         Suite 250                                 Northern Texas                                      
         801 East Campbell Road                                                                        
         Richardson, TX 75081                                                                          

         Claire Kolmodin                           Vice President - Strategic                          
                                                   Initiatives                                         

         Neysa A. Alecu                            Anti-Money Laundering Officer                       

         Benji Orr                                 Deputy Anti-Money Laundering                        
                                                   Officer                                             

         Lori J. Larson                            Vice President - Advisor                            
                                                   Field Force Growth and                              
                                                   Retention                                           

         Daniel E. Laufenberg                      Vice President - Chief                              
                                                   U.S. Economist                                      

         Jane W. Lee                               Vice President - General                            
                                                   Manager Platinum Financial                          
                                                   Services                                            

         Catherine M. Libbe                        Vice President - Marketing                          
                                                   & Product Retirement Services                       

         Diane D. Lyngstad                         Chief Financial Officer and                         
                                                   Vice President - Comp and                           
                                                   Licensing Services                                  

         Kurt W. Lofgren                           Vice President and Chief Compliance                 
                                                   Officer - U.S. Retail Distribution                  

         Andrew J. MacMillan                       Senior Vice President - Corporate                   
                                                   Communications & Government Affairs                 

         Timothy J. Masek                          Vice President -                                    
                                                   Fixed Income Research                               

         Frank A. McCarthy                         Vice President - External                           
                                                   Products Group and Personal                         
                                                   Trust Services                                      

         Brian J. McGrane                          Vice President and LFO                              
                                                   Officer - Finance                                   

         Dean O. McGill                            Group Vice President -                              
         11835 W. Olympic Blvd                     Los Angeles Metro                                   
         Suite 900 East                                                                                
         Los Angeles, CA 90064                                                                         

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         Jeffrey McGregor                          Vice President and National                         
                                                   Sales Manager for Distribution                      

         Sarah M. McKenzie                         Vice President - Managed and                        
                                                   Brokerage Products                                  

         Penny J. Meier                            Vice President - Business                           
                                                   Transformation/Six Sigma                            

         Paula R. Meyer                            Senior Vice President and                           
                                                   General Manager - Mutual Funds                      

         Rebecca A. Nash                           Vice President - Service                            
                                                   Operations                                          

         Thomas V. Nicolosi                        Group Vice President -                              
         Suite 220                                 New York Metro Area                                 
         500 Mamaroneck Ave.                                                                           
         Harrison, NY 10528                                                                            

         Patrick H. O'Connell                      Group Vice President -                              
         Commerce Center One                       Southern New England                                
         333 East River                                                                                
         Hartford, CT 06108-4200                                                                       

         Francois B. Odouard                       Vice President - Brokerage                          

         Michael J. O'Keefe                        Vice President -                                    
                                                   Advisory Business Systems                           

         Geoffery Oprandy                          Group Vice President - Southwest                    
         11811 N. Tatum Blvd. Suite 1030                                                               
         Phoenix, AZ 85028                                                                             

         Douglas J. Parish                         General Auditor                                     

         Kristi L. Petersen                        Vice President - One Account                        
                                                   and Cash                                            

         John G. Poole                             Group Vice President -                              
         14755 North Outer Forty Road              Gateway/Springfield                                 
         Suite 500                                                                                     
         Chesterfield, MO 63017                                                                        

         Larry M. Post                             Group Vice President -                              
         2 Constitution Plaza                      New England                                         
         Charlestown, MA 02129                                                                         

         Michael J. Rearden                        Group Vice President -                              
         1800 S. Pine Island Road, Suite 510       Southern Florida                                    
         Plantation, FL 33324                                                                          

         Ralph D. Richardson III                   Group Vice President -                              
         Suite 100                                 Carolinas                                           
         5511 Capital Center Drive                                                                     
         Raleigh, NC 27606                                                                             

         Mark A. Riordan                           Vice President - Finance                            
                                                   Emerging Technologies                               

         Maximillian G. Roth                       Group Vice President -                              
         1400 Lombardi Avenue                      Wisconsin/Upper Michigan                            
         Suite 202                                                                                     
         Green Bay, WI 54304                                                                           

         Andrew C. Schell                          Vice President - Strategy                           
                                                   and Planning                                        

         Gary A. Scott                             Vice President - Client                             
                                                   Acquisition Marketing and                           
                                                   Services                                            

         Jacqueline M. Sinjem                      Vice President - Plan                               
                                                   Sponsor Services                                    

         Martin S. Solhaug                         Vice President - International                      
                                                   Comp and Benefits                                   

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         Albert L. Soule                           Group Vice President -                              
         6925 Union Park Center                    Western Frontier                                    
         Suite 200                                                                                     
         Midvale, UT 84047                                                                             

         Bridget M. Sperl                          Senior Vice President -                             
                                                   Client Service Organization                         

         Kathy Stalwick                            Vice President                                      

         Paul J. Stanislaw                         Group Vice President -                              
         Suite 1100                                Southern California/Hawaii                          
         Two Park Plaza                                                                                
         Irvine, CA 92614                                                                              

         Lisa A. Steffes                           Vice President -                                    
                                                   Marketing Officer                                   
                                                   Development                                         

         David K. Stewart                          Vice President and Controller                       

         Jeffrey J. Stremcha                       Vice President - Technologies I                     

         John T. Sweeney                           Vice President, Lead Financial                      
                                                   Officer - Banking, Brokerage                        
                                                   and Managed Products                                

         Joseph E. Sweeney                         Senior Vice President,                              
                                                   General Manager - U.S. Brokerage                    
                                                   and Membership Banking                              

         Craig P. Taucher                          Group Vice President -                              
         Suite 150                                 Georgia/North Florida                               
         4190 Belfort Rd.                                                                              
         Jackonville, FL 32216                                                                         

         Neil G. Taylor                            Group Vice President -                              
         601 108th Ave North East                  Pacific Northwest                                   
         Suite 1800                                                                                    
         Bellevue, WA 98004-5902                                                                       

         William F. "Ted" Truscott                 Senior Vice President and                           
                                                   Chief Investment Officer                            

         George F. Tsafaridis                      Vice President - Quality &                          
                                                   Service Support                                     

         Janet M. Vandenbark                       Group Vice President -                              
         3951 Westerre Parkway, Suite 250          Virginia                                            
         Richmond, VA 23233                                                                            

         Ramanathan Venkataramanan                 Vice President - Technologies III                   

         Peter S. Velardi                          Senior Vice President -                             
                                                   Field Management                                    

         Andrew O. Washburn                        Vice President -                                    
                                                   Mutual Fund Marketing                               

         Donald F. Weaver                          Group Vice President -                              
         3500 Market Street,                       Eastern Pennsylvania/                               
         Suite 200                                 Delaware                                            
         Camp Hill, PA 17011                                                                           

         Beth E. Weimer                            Vice President and                                  
                                                   Chief Compliance Officer - Asset                    
                                                   Management and Insurance                            

         Phil Wentzel                              Vice President - Finance                            

         Robert K. Whalen                          Group Vice President -                              
         939 West North Ave                        Chicago Metro                                       
         Chicago, IL 60606                                                                             

         Jeffrey A. Williams                       Senior Vice President -                             
                                                   Cross-Sell/Strategic                                
                                                   Management                                          

         William J. Williams                       Senior Vice President -                             
                                                   Field Management                                    

         Dianne L. Wilson                          Vice President - Insurance                          
                                                   Operations                                          

         Gayle W. Winfree                          Group Vice President -                              
         1 Galleria Blvd. Suite 1900               Delta States                                        
         Metairie, LA 70001                                                                            

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         Abraham L. Wons                           Vice President - Investments Risk                   
                                                   Management                                          

         Michael R. Woodward                       Senior Vice President -                             
         32 Ellicott St                            Field Management                                    
         Suite 100                                                                                     
         Batavia, NY 14020                                                                             

         John R. Woerner                           Senior Vice President - Strategic                   
                                                   Planning and Business Development                   

* Business address is: 70100 Ameriprise Financial Center, Minneapolis, MN 55474 unless otherwise noted.

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                                                                [Download Table]

                      NET UNDERWRITING                                            
NAME OF PRINCIPAL     DISCOUNTS AND     COMPENSATION ON  BROKERAGE                
UNDERWRITER           COMMISSIONS       REDEMPTION       COMMISSIONS  COMPENSATION
-----------           -----------       ----------       -----------  ------------
                                                                                  
Ameriprise Financial     None              None              None         None    
Services, Inc.                                                                    

Item 30.          Location of Accounts and Records                              

American Centurion Life Assurance Company   
20 Madison Avenue Extension                 
Albany, NY 12203                            

Item 31.          Management Services                                           

Not Applicable                              

Item 32.          Undertakings                                                  

              (a)(b)&(c) These undertakings were filed with Registrant's
                             Initial Registration Statement, File No. 333-00041.

               (d)        The sponsoring insurance company represents that
                           the fees and charges deducted under the contract,
                             in the aggregate, are reasonable in relation to the
                        services rendered, the expenses expected to be
                          incurred, and the risks assumed by the insurance
company.              

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SIGNATURES

As required by the Securities Act of 1933 and the Investment Company Act of     
1940, American Centurion Life Assurance Company, on behalf of the Registrant    
certifies that it meets the requirements of Securities Act Rule 485(b) for      
effectiveness of this Amendment to its Registration Statement and has caused    
this Amendment to its Registration Statement to be signed on its behalf by the  
undersigned thereunto duly authorized in the City of Minneapolis, and State of  
Minnesota, on the 27 day of April, 2006.                                        

                      ACL VARIABLE ANNUITY ACCOUNT 1
                      ------------------------------
                                      (Registrant)

                                    By American Centurion Life Assurance Company
                                    --------------------------------------------
                                     (Depositor)

                    By /s/  Timothy V. Bechtold*
                                      ------------------------------------------
                           Timothy V. Bechtold
                           President and Chief
                         Executive Officer

As required by the Securities Act of 1933, this Amendment to the Registration   
Statement has been signed by the following persons in the capacities indicated  
on the ____ day of April, 2006.                                                 

                                                                [Download Table]

SIGNATURE                            TITLE                                    
                                                                              
/s/ Gumer C. Alvero*                 Director and Vice President - Annuities  
    ----------------------                                                    
    Gumer C. Alvero                                                           

/s/ Timothy V. Bechtold*             Director, President and Chief Executive  
    ----------------------           Officer                                  
    Timothy V. Bechtold              (Chief Executive Officer)                

/s/ Maureen A. Buckley*              Director, Vice President, Chief Operating
    ----------------------           Officer, Consumer Affairs Officer, Claims
    Maureen A. Buckley               Officer and Money Laundering Prevention  
                                     Officer                                  

/s/ Rodney P. Burwell*               Director                                 
    ----------------------                                                    
    Rodney P. Burwell                                                         

/s/ Robert R. Grew*                  Director                                 
    ----------------------                                                    
    Robert R. Grew                                                            

/s/ Martin T. Griffin*               Director                                 
    ----------------------                                                    
    Martin T. Griffin                                                         

/s/ Ronald L. Guzior*                Director                                 
    ----------------------                                                    
    Ronald L. Guzior                                                          

/s/ Gregory C. Johnson*              Director                                 
    ----------------------                                                    
    Gregory C. Johnson                                                        

/s/ Jean B. Keffeler*                Director                                 
    ----------------------                                                    
    Jean B. Keffeler                                                          

/s/ Thomas R. McBurney*              Director                                 
    ----------------------                                                    
    Thomas R. McBurney                                                        

/s/ Jeryl A. Millner*                Director                                 
    ----------------------                                                    
    Jeryl A. Millner                                                          

/s/ Thomas V. Nicolosi*              Director                                 
    ----------------------                                                    
    Thomas V. Nicolosi                                                        

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                                                                [Download Table]
                                                                   
/s/ David K. Stewart**               Vice President and Controller 
    ----------------------           (Principal Accounting Officer)
    David K. Stewart                 (Principal Financial Officer) 

/s/ Michael R. Woodward*             Director                      
    ----------------------                                         
    Michael R. Woodward                                            

*   Signed pursuant to Power of Attorney, dated Oct. 21, 2005, filed            
electronically herewith as Exhibit 13.1, by:                            

**  Signed pursuant to Power of Attorney, dated July 7, 2004, filed             
   electronically as Exhibit 13.2 to Registrant's Post-Effective Amendment No.
10, by:                                                                 

/s/ Mary Ellyn Minenko                                                          
-------------------------------------                                           
Mary Ellyn Minenko                                                      
Counsel                                                                 

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 CONTENTS OF POST-EFFECTIVE AMENDMENT NO. 12

 TO REGISTRATION STATEMENT NO. 333-00041

This Post-Effective Amendment is comprised of the following papers and          
documents:                                                                      

The Cover Page.                                                                 

Part A.                                                                         

The prospectus.                                               

Part B.                                                                         

Statement of Additional Information.                          

Financial Statements.                                         

Part C.                                                                         

Other Information.                                            

The signatures.                                               

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘485BPOS’ Filing		Date		First		Last			Other Filings
		12/31/09		62					24F-2NT,  N-30B-2,  NSAR-U
		5/1/07		7
		4/30/07		7
		12/15/06		54
		8/31/06		8
Effective on:		5/1/06		1		30
		4/28/06		9		41
Filed on:		4/27/06
		3/31/06		34		73
		3/17/06		10		41			497
		2/27/06		46		69
		2/15/06		43
		1/1/06		54
		12/31/05		7		69			NSAR-U
		12/15/05		54
		11/3/05		54
		10/21/05		70		81
		10/1/05		42		63
		9/30/05		41		63			485BPOS
		8/31/05		7
		8/1/05		51					497
		2/1/05		51
		1/1/05		42
		12/31/04		33		69			24F-2NT,  NSAR-U
		10/22/04		62
		7/7/04		70		81
		6/18/04		54
		1/1/04		53		54
		12/31/03		44		69			24F-2NT,  NSAR-U
		12/15/03		54
		2/6/03		69
		12/31/02		44		50			24F-2NT,  NSAR-U
		12/31/01		44		45			24F-2NT,  NSAR-U
		4/10/97		69
		12/4/96		70
		10/23/96		70
		10/7/96		70
		7/31/96		70
		12/1/95		11		69
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