SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-6
REGISTRATION STATEMENT
UNDER
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THE
SECURITIES ACT OF 1933 |
[ ]
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Post-Effective
Amendment No. (File No. ) |
[
] |
and/or
REGISTRATION STATEMENT
UNDER
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THE
INVESTMENT COMPANY ACT OF 1940 |
[ ]
|
|
Amendment
No. 101 (File No. 811-05213) |
[x]
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(Check appropriate
box or boxes)
Exact Name of Registrant:
RiverSource of New York Account 8
Name of Depositor:
RIVERSOURCE LIFE INSURANCE CO. OF NEW YORK
Address of Depositor’s Principal
Executive Offices, Zip Code
Depositor’s Telephone Number, including Area Code:
20 Madison Avenue Extension Albany, NY
12203
(800) 541-2251
Name and
Address of Agent for Service:
Dixie
Carroll, Esq.
5229 Ameriprise Financial Center
Minneapolis, MN 55474
Approximate Date of Proposed Public Offering:
As soon as practicable after the effective date of the registration statement.
The Registrant hereby amends this registration
statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with
Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to Section 8(a) may determine.
Prospectus
December XX, 2021
RiverSource®
Survivorship Variable Universal Life Insurance
INDIVIDUAL FLEXIBLE PREMIUM VARIABLE LIFE INSURANCE
POLICY
Issued
by: |
RiverSource
Life Insurance Co. of New York (RiverSource Life of NY) |
|
20 Madison
Avenue Extension Albany, NY 12203 Telephone: 1-800-541-2251 Website address: riversource.com/lifeinsurance RiverSource of New York Account 8 |
Service
Center: |
RiverSource
Life Insurance Co. of New York |
|
70500
Ameriprise Financial Center Minneapolis, MN 55474 Telephone: 1-800-541-2251 Website address: riversource.com/lifeinsurance |
This prospectus contains information about the life insurance
policy that you should know before investing in RiverSource Survivorship Variable Universal Life Insurance (SVUL - NY).
The purpose of the policy is to provide life insurance
protection on the life of two Insureds and to potentially build Policy Value. The policy is a long-term investment that provides a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. You may direct your Net
Premiums or transfers to:
•
|
A Fixed Account to which we
credit interest. |
•
|
Indexed Accounts to which we
credit interest. |
•
|
Subaccounts
that invest in underlying Funds. |
Prospectuses are available for the Funds that are investment
options under the policy. Please read all prospectuses carefully and keep them for future reference.
RiverSource Life of NY has not authorized any person to give
any information or to make any representations regarding the policy other than those contained in this prospectus or the Fund prospectuses. Do not rely on any such information or representations.
Please note that your investments in a policy and its underlying
Funds:
•
|
Are NOT deposits or
obligations of a bank or financial institution; |
•
|
Are NOT insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government agency; and |
•
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Are
subject to risks including loss of the amount you invested and the policy ending without value. |
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.
Variable life insurance is a complex vehicle that is subject
to market risk, including the potential loss of principal invested. Before you invest, be sure to ask your sales representative about the policy’s features, benefits, risks and fees, and whether it is appropriate for you based upon your
financial situation and objectives. Your sales representative may or may not be authorized to offer you several different variable life insurance policies in addition to the policy described in this prospectus. Each policy has different features or
benefits that may be appropriate for you based on your financial situation and needs, your age and how you intend to use the policy. The different features and benefits may include investment and fund manager options, variations in interest rate
amounts and guarantees and surrender charge schedules. The fees and charges may also be different among the policies. Be sure to ask your sales representative about all the options that are available to you.
Additional information about certain investment products,
including variable life insurance, has been prepared by the Securities and Exchange Commission’s staff and is available at Investor.gov.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 1
If you are a new investor in the policy, you may cancel your
policy within 10 days of receiving it without paying penalties (if the policy is intended to replace an existing policy, this cancellation period is extended to 60 days). Upon cancellation, you will receive a full refund of the amount you paid with
your application. You should review this prospectus, or consult with your investment professional, for additional information about the specific cancellation terms that apply.
For your convenience, we have defined certain words and
phrases used in this prospectus in the “Key Terms” section.
2 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
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RiverSource Survivorship Variable Universal Life
Insurance New York — Prospectus 3
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4 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
These terms can help you understand details about your policy.
Accumulation Unit: An
accounting unit used to calculate the value of the Subaccounts.
Attained Insurance Age: An
Insured's Insurance Age plus the number of policy anniversaries since the Policy Date. Attained Insurance Age changes only on a Policy Anniversary.
Beneficiary: The person(s) or
entity(ies) designated to receive the death benefit Proceeds.
Cash Surrender Value: Proceeds
received if you surrender the policy in full. The Cash Surrender Value equals the Policy Value minus Indebtedness and any applicable Surrender Charges.
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.
Death Benefit Valuation
Date: The date of the last surviving Insured’s death when death occurs on a Valuation Date. If the last surviving Insured does not die on a Valuation Date, then the Death Benefit Valuation Date is
the next Valuation Date following the date of the last surviving Insured’s death.
Duration: The number of years
a policy is in force. For example, Duration 1 is the first year the policy is in force and Duration 15 is the 15th year the policy is in force.
Fixed Account: The portion of
the Policy Value that earns interest at a fixed rate not less than the guaranteed interest rate as shown under Policy Data.
Fixed Account Value: The
portion of the Policy Value that you allocate to the Fixed Account, including Indebtedness.
Funds: Mutual funds or
portfolios, each with a different investment objective. (See “The Variable Account and the Funds.”) Each of the Subaccounts of the Variable Account invests in a specific one of these Funds.
Good Order: We cannot process
your transaction request relating to the policy until we have received the request in Good Order at our Service Center. “Good Order” means the actual receipt of the requested transaction in writing, along with all information, forms and
supporting legal documentation necessary to effect the transaction. To be in “Good Order,” your instructions must be sufficiently clear so that we do not need to exercise any discretion to follow such instructions. This information and
documentation generally includes your completed request; the policy number; the transaction amount (in dollars); the names of and allocations to and/or from the Subaccounts, the Indexed Accounts and the Fixed Account affected by the requested
transaction; Social Security Number or Taxpayer Identification Number; and any other information, forms or supporting
documentation that we may require. For certain transactions, at our option,
we may require the signature of all policy Owners for the request to be in Good Order. With respect to purchase requests, “Good Order” also generally includes receipt of sufficient payment by us to effect the purchase. We may, in our
sole discretion, determine whether any particular transaction request is in Good Order, and we reserve the right to change or waive any Good Order requirements at any time.
Indebtedness: All existing
loans on the policy plus interest that has either been accrued or added to the policy loan.
Insurance Age: The age of an
Insured, based upon his or her nearest birthday on the date of the application.
Insured: The person(s) whose
life(ves) is/are insured by the policy.
Lapse: The policy ends without value and no death benefit is paid.
Monthly Date: The same day
each month as the Policy Date. If there is no Monthly Date in a calendar month, the Monthly Date is the first day of the next calendar month.
Net Amount at Risk: A portion
of the death benefit equal to the current death benefit divided by the guaranteed interest rate factor shown under Policy Data minus the Policy Value. This is the amount to which we apply cost of insurance rates in determining the monthly cost of
insurance.
Net Premium: The premium paid minus the premium expense charge.
No-Lapse Guarantee (NLG): A
feature of the policy guaranteeing that the policy will remain in force over the No-Lapse Guarantee Period even if the Cash Surrender Value is insufficient to pay the monthly deduction. This feature is in effect as long as certain premium payment
requirements are met.
No-Lapse Guarantee Period: The maximum duration the NLG can be in effect if the premium payment requirements are met. The No-Lapse Guarantee Period is shown under Policy Data and depends on the youngest Insured’s Insurance Age.
No-Lapse Guarantee Premium:
The premium amount used to determine if the NLG is in effect. The NLG Premium is shown under Policy Data and depends on the Insureds’ Insurance Ages, sexes (unless unisex rates are required by law), Risk
Classifications, optional insurance benefits added by rider, the initial Specified Amount and death benefit option.
Owner: The entities to which,
or individuals to whom, we issue the policy or to whom you subsequently transfer ownership. The Owner is authorized to make changes to the policy and request transactions involving Policy Value. In the prospectus “you” and
“your” refer to the Owner.
RiverSource Survivorship Variable Universal Life
Insurance New York — Prospectus 5
Policy Anniversary: The same
day and month as the Policy Date each year the policy remains in force.
Policy Data: The portion of
the policy that includes specific information on your policy regarding your policy’s benefits, amount and duration of guaranteed charges, premium information, and other benefit data applicable to the Insureds.
Policy Date: The date we issue
the policy and from which we determine policy anniversaries, policy years and policy months. The Policy Date is shown under Policy Data.
Policy Value: The sum of the
Fixed Account Value plus the Variable Account Value plus the values of the Indexed Account(s).
Proceeds: The amount payable
under the policy as follows:
•
|
Upon death of the last
surviving Insured prior to the date the youngest Insured has reached Attained Insurance Age 120, Proceeds will be the death benefit in effect as of the date of the last surviving Insured’s death, minus any Indebtedness. |
•
|
Upon
death of the last surviving Insured on or after the youngest Insured has reached Attained Insurance Age 120, Proceeds will be the greater of: |
—
|
the Policy Value on the date
of the last surviving Insured’s death minus any Indebtedness on the date of that Insured’s death; or |
—
|
the death
benefit at the youngest Insured’s Attained Insurance Age Policy Anniversary minus any partial surrenders and partial surrender fees occurring after the youngest Insured’s Policy Anniversary minus any Indebtedness on the date of the last
surviving Insured’s death. |
•
|
On surrender of the policy,
the Proceeds will be the Cash Surrender Value. |
Pro Rata Basis: Method for
allocating amounts to the Fixed Account and to each of the Subaccounts. It is proportional to the value (minus Indebtedness in the Fixed Account) that each bears to the total Policy Value (minus Indebtedness and minus the values of the Indexed
Accounts).
Risk Classification: A group of Insureds that RiverSource Life of NY expects will have similar mortality experience.
RiverSource Life of NY: In
this prospectus, “we,” “us,” “our” and “RiverSource Life of NY” refer to RiverSource Life Insurance Co. of New York.
Scheduled Premium: A premium
you select at the time of application, of a level amount, at a fixed interval of time.
Service Center: Our department
that processes all transaction and service requests for the policies. We consider all transaction and service requests received
when they arrive in Good Order at the Service Center. Any transaction or
service requests sent or directed to any location other than our Service Center may end up delayed or not processed. Our Service Center address and telephone number are listed on the first page of the prospectus.
Specified Amount: An amount we
use to determine the death benefit and the Proceeds payable upon death of the last surviving Insured prior to the youngest Insured’s Attained Insurance Age 120 Policy Anniversary. We show the initial Specified Amount in your
policy.
Subaccounts: Each Subaccount is a separate investment division of the Variable Account and invests in a particular portfolio or Fund.
Surrender Charge: A charge we
assess against the Policy Value at the time of surrender, or if the policy Lapses, during the first ten years of the policy and for ten years after an increase in coverage.
Valuation Date: Any normal
business day, Monday through Friday, on which the New York Stock Exchange (NYSE) is open, up to the time it closes, generally 4:00 PM Eastern Time. At the NYSE close, the next Valuation Date begins. We calculate the Accumulation Unit value of each
Subaccount on each Valuation Date. If we receive your transaction request at our Service Center before the Close of Business, we will process your transaction using the Accumulation Unit value we calculate on the Valuation Date we received your
transaction request in Good Order. On the other hand, if we receive your transaction request in Good Order at our Service Center at or after the Close of Business, we will process your 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.
Valuation Period: The interval
that commences at the Close of Business on each Valuation Date and goes up to the Close of Business on the next Valuation Date.
Variable Account: RiverSource
of New York Account 8 consisting of Subaccounts, each of which invests in a particular Fund. The Policy Value in each Subaccount depends on the performance of the particular Fund.
Variable Account Value: The
sum of the values that you allocate to the Subaccounts of the Variable Account.
6 RiverSource Survivorship
Variable Universal Life Insurance New York — Prospectus
Key Information
Table
Important Information You Should Consider About
the Contract
|
FEES
AND EXPENSES |
Location
in Statutory Prospectus |
Charges
for Early Withdrawals |
If
you surrender your policy for its full Cash Surrender Value, or the policy Lapses, during the first ten years and for ten years after requesting an increase in the Specified Amount, you will incur a Surrender Charge. The Surrender Charges are set
based on various factors such as the Insureds’ Insurance Ages (or Attained Insurance Ages at the time of a requested increase in the Specified Amount), Risk Classifications, genders and the number of years the policy has been in force (or for
the number of years from the effective date of an increase in Specified Amount). The Surrender Charges are shown under the Policy Data page of your policy. |
Fee
Tables |
Transaction
Charges |
In
addition to Surrender Charges, you may also incur charges on other transactions, such as a premium expense charge, partial Surrender Charge, express mail fee, electronic fund transfer fee, and fees imposed when exercising your rights under certain
riders and benefits under the policy. If you take a loan against the policy, you will be charged a loan interest rate on any outstanding balance until the loan is paid off. |
Fee
Tables |
Ongoing
Fees and Expenses (annual charges) |
In
addition to Surrender Charges and transaction charges, an investment in the policy is subject to certain ongoing fees and expenses, including fees and expenses covering the cost of insurance under the policy and the cost of certain optional
benefits available under the policy. Such fees and expenses are set based on various factors such as the Insureds’ Risk Classifications, Issue Ages, genders and the number of years the policy is in force. You should review the rates, fees and
charges under the Policy Data page of your policy. You will also bear expenses associated with the Funds offered under the policy, as shown in the following table: |
Fee
Tables |
Annual
Fee |
Minimum
|
Maximum
|
Underlying
Fund options (Funds fees and expenses)(1) |
0.26%
|
4.14%
|
(1) As a percentage of fund assets. |
|
RISKS
|
|
Risk
of Loss |
You
can lose money by investing in this policy including loss of principal. |
Principal
Risks |
Not
a Short-Term Investment |
The
policy is a long-term investment that is primarily intended to provide a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. The policy is not suitable as a short-term
investment and may not be appropriate for an investor who needs ready access to cash. Your policy has little or no Cash Surrender Value in the early policy years. During early policy years the Cash Surrender
Value may be less than the premiums you pay for the policy. Your ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. |
Principal
Risks |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 7
|
RISKS
|
Location
in Statutory Prospectus |
Risks
Associated with Investment Options |
•
You can lose cash value due to adverse investment experience. There is no minimum guaranteed cash value under the Subaccounts of the Variable Account. • If the death benefit is option 2, the death benefit could decrease from the
death benefit on the previous Valuation Date due to adverse investment experience. • Your policy could Lapse due to adverse investment experience if the No-Lapse Guarantee is not in effect and you do not pay the premiums needed to
maintain coverage. • Each investment option (including the Fixed Account and the Indexed Accounts) has its own unique risks. • You should review the investment options before making an investment decision. |
Principal
Risks The Variable Account and the Funds |
Insurance
Company Risks |
An
investment in the policy is subject to the risks related to us. Any obligations (including under the Fixed Account and the Indexed Accounts) or guarantees and benefits of the policy that exceed the assets of the Variable Account are subject to our
claims-paying ability. If we experience financial distress, we may not be able to meet our obligations to you. More information about RiverSource Life of NY, including our financial strength ratings, is available by contacting us at
1-800-541-2251. Additional information regarding the financial strength of RiverSource Life of NY can be accessed at: strengthandsoundness.com. |
Principal
Risks The General Account |
Policy
Lapse |
Insufficient
premium payments, fees and expenses, poor investment performance, full and partial surrenders, and unpaid loans or loan interest may cause the policy to Lapse. There is a cost associated with reinstating a Lapsed policy. Death benefits will not be
paid if the policy has Lapsed. |
Keeping
the Policy in Force |
|
RESTRICTIONS
|
|
Investment
Options |
•
We reserve any right to limit transfers of value from a Subaccount to one or more Subaccounts or to the Fixed Account to five per policy year, and we may suspend or modify this transfer privilege at any time with any necessary approval of the
Securities and Exchange Commission. • Your transfers among the Subaccounts are subject to policies designed to deter market timing. • The minimum transfer amount from an investment option is $50, if automated, and
$250 by mail or telephone. • On the youngest Insured’s Attained Insurance Age 120 anniversary, any Policy Value in the Subaccounts will be transferred to the Fixed Account and may not be transferred to any Indexed Account.
• You may only transfer between Subaccounts and the Fixed Account on a Policy Anniversary, unless you automate such transfers. • Restrictions into and out of the Indexed Accounts apply. • We reserve the
right to close, merge or substitute Funds as investment options. We also reserve the right, upon notification to you, to close or restrict any Funds. We will obtain any necessary approval of the Securities and Exchange Commission.
• We generally limit premium payments in excess of $1,000,000. |
Transfers
Among the Fixed Account, Indexed Accounts and Subaccounts Substitution of Investments Optional Benefits — Investment Allocation Restrictions for Certain Benefit Riders
|
Optional
Benefits |
•
Certain restrictions and limitations apply under the policy’s optional benefits. • Certain optional benefits are only available at policy issuance. |
Additional
Information About Standard Benefits (Other than Standard Benefits) |
8 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
|
TAXES
|
Location
in Statutory Prospectus |
Tax
Implications |
•
You should consult with a tax professional to determine the tax implications of an investment in and payments received under the policy. • If your policy is a modified endowment contract, you may have to pay a tax penalty if you
take a withdrawal before age 59½. |
Taxes
|
|
CONFLICTS
OF INTEREST |
|
Investment
Professional Compensation |
In
general, we pay selling firms and their sales representatives compensation for selling the policy. In addition to commissions, we may, in order to promote sales of the policies, pay or provide selling firms with other promotional incentives in
cash, credit or other compensation. These promotional incentives or reimbursements may be calculated as a percentage of the selling firm’s aggregate, net or anticipated sales and/or total assets attributable to sales of the policy, and/or may
be a fixed dollar amount. Selling firms and their sales representatives may have a financial incentive to recommend the policy over another investment. |
Distribution
of the Policy |
Exchanges
|
If
you already own an insurance policy, some financial representatives may have a financial incentive to offer you a new policy in place of one you already own. You should only exchange an existing policy if you determine, after comparing the
features, fees and risks of both policies, that it is better for you to purchase the new policy rather than continue to own your existing policy. |
For
additional information, see 1035 exchanges under Other Tax Considerations |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 9
Overview of the
Policy
Purpose
The purpose of the policy is to provide life insurance
protection on the life of two Insureds and to potentially build Policy Value. The policy is a long-term investment that provides a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. This Policy may be
appropriate for you if you have a long investment time horizon and the Policy’s terms and conditions are consistent with your financial goals. It is not intended for people whose liquidity needs require early or frequent withdrawals or for
people who intend to frequently trade in the policy’s variable investment options.
We pay death benefit Proceeds to the chosen Beneficiary when
the last surviving Insured person under the Policy dies. You tell us how much life insurance coverage you want. We call this the “Specified Amount” of insurance. Death benefit Proceeds may be increased by any additional death benefit you
have elected, and will be decreased by any outstanding Policy loans and loan interest.
Premiums
In applying for your policy, you decide how much you intend to
pay and how often you will make any additional payments.
The policy also includes a No-Lapse Guarantee benefit, which,
subject to certain requirements, guarantees the policy will remain in force even if the Cash Surrender Value is insufficient to pay the monthly deduction.
You will choose a Scheduled Premium at the time of
application. The Scheduled Premium serves only as an indication of your intent as to the frequency and amount of future premium payments. You may skip Scheduled Premium payments at any time if your Cash Surrender Value is sufficient to pay the
monthly deduction or if you have paid sufficient premiums to keep the No- Lapse Guarantee in effect.
You may also make unscheduled premium payments at any time and
in any amount of at least $25.
We reserve the right to
limit the number and amount of unscheduled premium payments. No premium payments, scheduled or unscheduled, are allowed on or after the youngest Insured’s Attained Insurance Age 120 Policy Anniversary.
Your policy may Lapse if you do not pay the premiums needed to
maintain coverage. In that case, we will not pay a death benefit.
Allocation of Premiums
We will hold any premium paid prior to the Policy Date. As of
the Policy Date, we will allocate the Net Premium to the accounts you have selected in your application.
You may direct your Net Premiums or transfers to:
•
|
A Fixed Account, |
•
|
Indexed Accounts, or
|
•
|
Subaccounts
that invest in underlying Funds. |
A
complete list of underlying Funds available under the Policy can be found at the back of this document.
Policy Features
•
|
Flexibility. The policy is designed to be flexible. While the at least one of the Insureds are living, you, as the Owner of the policy, may exercise all of the rights and options described in the policy. You may, within limits, (1)
change the amount of insurance, (2) borrow or withdraw amounts you have invested, (3) choose when and how much you invest, (4) choose whether your Policy Value or premium will be added to the Specified Amount when determining proceeds payable to the
Beneficiary upon the last surviving Insured’s death, and (5) add or delete certain other optional benefits that we make available by rider to your policy, as permitted. |
•
|
Accessing Your Money. At any time while the policy is in force, you may fully surrender your policy in return for its Cash Surrender
Value. A full surrender will terminate your policy and it cannot be reinstated. At any time after the first policy year, you may partially surrender your policy’s Cash Surrender Value. A partial surrender must be at least $500. Partial surrenders will also reduce your Policy Value and death benefit and will increase your risk of Lapse. Full
surrenders may be subject to Surrender Charges and partial surrenders are subject to surrender processing fees. |
•
|
Death
Benefit Options. You must choose between death benefit Option 1, Option 2 or
Option 3 at the time of your application. After choosing a death benefit option, you may change it at any time prior to the youngest Insured’s Attained
Insurance Age 120. |
•
|
Death Benefit Option 1:
Provides for a death benefit that is equal to the greater of (a) the Specified Amount and (b) a percentage of Policy Value. |
10 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
•
|
Death Benefit Option 2:
Provides for a death benefit that is equal to the greater of (a) the Specified Amount plus the Policy Value and (b) a percentage of Policy Value. |
•
|
Death
Benefit Option 3: Provides for a death benefit that is equal to the greater of (a) the lesser of (i) the Specified Amount plus premiums paid, less partial surrenders and any partial surrender fees, or (ii) the Death Benefit Option 3 Limit shown in
your Policy Data pages; and (b) a percentage of Policy Value. |
•
|
Loans. You may take a loan from your policy at any time. The maximum amount of a new loan you may take is 90% of the Cash Surrender Value. The minimum loan you may take is $500. When you take a loan, we remove from your
investment options an amount equal to your loan and hold that part of your Policy Value in the Fixed Account as loan collateral. We charge interest on your loan. The loan collateral does not participate in the investment performance of the
Subaccounts, nor does it receive indexed interest. Taking a loan may have adverse tax consequences, will reduce the death benefit, and will increase your risk of Lapse. |
•
|
Tax Treatment. The policy is designed to afford the tax treatment of a qualifying life insurance policy under federal law. Generally, under federal tax law, the death benefit under a qualifying life insurance policy is excludable from
the gross income of the Beneficiary. In addition, under a qualifying life insurance policy, cash value builds up on a tax deferred basis and transfers of cash value among the available investment options under the policy may be made income tax free.
The tax treatment of policy loans and distributions may vary depending on whether the policy is a modified endowment contract. Neither distributions nor loans from a policy that is not a modified endowment contract are subject to the 10% penalty
tax. |
•
|
Optional
Benefit Riders: The policy offers additional benefits, or “riders,” that provide you with supplemental benefits under the policy at an additional cost. . These riders, which are only available at policy
issue, include: |
•
|
Rider that provides a
partial waiver of the Surrender Charge upon a full surrender (i.e., Accounting Value Increase Rider). |
•
|
Policy Split Option Rider
that permits a policy to be split into two individual permanent plans of life insurance then offered by us for exchange (i.e., Policy Split Option Rider). |
•
|
Rider
that provides an additional, pre-set death benefit if the last surviving Insured dies during the first four years of a policy (i.e., Four-Year Term Rider). |
•
|
Additional
“Standard” Riders, Features and Services. Additional riders, features and services under the policy are summarized below. There are no additional charges associated with these features and
services. |
•
|
Automated Transfers. This
feature allows you to automatically transfer Policy Value from either a Subaccount or the Fixed Account to one or more Subaccounts and the Indexed Accounts on a regular basis. Via automated transfers you can take advantage of a dollar cost averaging
strategy where you invest in one or more Subaccounts on a regular basis, for example monthly, instead of investing a large amount at one point in time. This systematic approach can help you benefit from fluctuations in Accumulation Unit values
caused by the fluctuations in the value of the underlying Fund. |
•
|
Asset Rebalancing. The
automatic rebalancing feature automatically rebalances your Policy Value in the Subaccounts to correspond to your premium allocation designation. Asset rebalancing does not count towards the number of free transfers per policy year. |
•
|
No-Lapse Guarantee.
Guarantees the policy will remain in force over the No-Lapse Guarantee Period even if the Cash Surrender Value is insufficient to pay the monthly deduction. This feature is in effect so long as certain requirements are met. |
•
|
Riders that help prevent
your policy from Lapsing (i.e., Overloan Protection Benefit). |
•
|
Policy
Value Credit. We may periodically apply a credit to your Policy Value. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 11
Fee
Tables
The following tables describe the fees and expenses
that you will pay when buying, owning and surrendering or making withdrawals from the policy. Please refer to your Policy Data page for information about the specific fees you will pay each year based on the options you have elected.
The first table describes the fees and expenses that you will
pay at the time that you buy the policy, surrender or make withdrawals from the policy or transfer cash value between investment options.
Transaction Fees
CHARGE
|
WHEN
CHARGE IS DEDUCTED |
AMOUNT
DEDUCTED |
Maximum
Sales Charge Imposed on Premiums (Load)(a) |
When
you pay premium. |
6% of each
premium payment. |
|
Premium
Taxes |
When
you pay premium as part of the premium expense charge. |
A portion
of the premium expense charge is used to pay state premium taxes imposed on us by state and governmental subdivisions. See discussion under “Premium Expense Charge.” |
|
Maximum
Deferred Sales Charge (Load)(b) |
When
you surrender your policy for its full Cash Surrender Value, or the policy Lapses, during the first ten years and for ten years after requesting an increase in the Specified Amount. |
Rate per $1,000 of initial Specified Amount: |
Minimum: $7.3347 — Female, Standard NonTobacco, Insurance Age 20; Male, Standard NonTobacco, Insurance Age 85. |
Maximum: $36.8476– Female, Standard Tobacco, Insurance Age 68; Male, Standard Tobacco, Insurance Age 68. |
Representative
Insured: $18.4595– Female, Super Preferred, Nontobacco, Age 55; Male, Standard Nontobacco, Insurance Age 55. |
|
Other
Surrender Fees(c) |
When
you surrender part of the value of your policy. |
The
lesser of: |
• $25;
or |
• 2%
of the amount surrendered. |
|
Transfer
Fees |
N/A
|
N/A
|
|
Fees
for Express Mail and Electronic Fund Transfers of Loan or Surrender Proceeds |
When
you take a loan or surrender and Proceeds are sent by express mail or electronic fund transfer. |
•
$30 — United States. |
• $35
— International. |
|
Interest
Rate on Loans |
Charged
daily and due at the end of the policy year. |
•
3% for policy years 1-10; |
|
|
|
•
1.00% for policy years 11+ |
|
|
|
|
Overloan
Protection Benefit (OPB) |
Upon
exercise of the benefit. |
3% of the
Policy Value |
|
Policy
Split Option Rider (PSO) |
Upon
exercise of the benefit. |
$250
|
|
(a) |
We call this the premium
expense charge in other places in this prospectus. |
(b) |
We call this a Surrender
Charge in other places in this prospectus, and it is level for the first five policy years and then it decreases monthly until it reaches $0 at the end of year 10. This charge varies based on individual characteristics. The charges shown in the
table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone number shown on the first page of this
prospectus. |
(c) |
We call
this the partial Surrender Charge in other places in this prospectus. |
12 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
The next table
describes the fees and expenses that you will pay periodically during the time that you own the policy, not including Fund fees and expenses.
Periodic Charges Other than Annual Fund Expenses
CHARGE
|
WHEN
CHARGE IS DEDUCTED |
AMOUNT
DEDUCTED |
Policy
Fee |
|
$10 per
month for initial Specified Amounts below $2,000,000. |
|
Cost
of Insurance Charge(a) |
Monthly.
|
Monthly rate per $1,000 of Net Amount at Risk: |
Minimum: $0.00000— Female, Super Preferred, Nontobacco Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20; Duration 1. |
Maximum: $49.01164— Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85, Duration 35. |
|
Representative
Insured: $0.00001– Female, Super Preferred, Nontobacco, Insurance Age 55; Male, Standard, Nontobacco, Age 55: Duration 1. |
|
Administrative
Charge(a) |
Monthly.
|
Rate per $1,000 of initial Specified Amount: |
Minimum: $0.064— Female, Super Preferred Nontobacco, Insurance Age 20; Female, Super Preferred Nontobacco, Insurance Age 20; Durations 1-10. |
Maximum: $1.672; Male, Standard Tobacco, Age 85; Male, Standard Tobacco, Insurance Age 85; Durations 1-10 |
|
Representative
Insured: Female, Super Preferred Nontobacco, Age 55; Male, Standard Nontobacco, Insurance Age 55. |
Current: $0.274 per month, Durations 1-10. |
|
Indexed
Account Charge(b) |
Monthly.
|
Annual
rate of 0.60% applied monthly. |
|
Mortality
and Expense Risk Charge |
Monthly.
|
Annual
rate of 0.00% applied monthly to the Variable Account Value. |
|
Optional
Benefit Charges: |
|
|
|
|
|
|
(a) |
This charge varies based on
individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or telephone
number shown on the first page of this prospectus. |
(b) |
The
Indexed Account charge is equal to the sum of the charges for all Indexed Accounts. The charge for an Indexed Account is equal to the current Indexed Account charge for that Indexed Account multiplied by the sum of the Segment values corresponding
to that Indexed Account as of the Monthly Date. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 13
Periodic Charges Other than
Annual Fund Expenses (continued)
CHARGE
|
WHEN
CHARGE IS DEDUCTED |
AMOUNT
DEDUCTED |
Accounting
Value Increase Rider (AVIR)(a) |
Monthly.
|
Monthly rate per $1,000 of Specified Amount: |
Minimum: $0.0329 — Female, Nontobacco, Insurance Age 85; Male Nontobacco, Insurance Age 85. |
Maximum: $0.0475 — Female, Nontobacco, Insurance Ages 35-55; Male Nontobacco, Insurance Ages 35-55. |
|
Representative
Insured: $0.0475 — Female, Nontobacco, Age 55; Male, Nontobacco, Insurance Age 55. |
|
Four-Year
Term Insurance Rider (FYT)(a)(b) |
Monthly.
|
Monthly rate per $1,000 of Net Amount at Risk: |
Minimum: $0.00000 — Female, Super Preferred, Nontobacco, Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20, Duration 1. |
Maximum: $2.46005 — Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85; Duration 4. |
|
Representative
Insured: $0.00001 – Female, Super Preferred Nontobacco, Insurance Age 55; Male, Standard Nontobacco, Age 55; Duration 1. |
|
(a) |
This charge varies based on
individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource Life of NY at the address or
telephone number shown on the first page of this prospectus. |
(b) |
This rider
will terminate if one of the following circumstances occurs: (1) four-year Anniversary date shown in the policy; or (2) if the PSO rider is exercised. |
14 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Total Annual
Operating Expenses of the Funds
The next table provides
the minimum and maximum total operating expenses charged by the underlying Funds that you may pay periodically during the time that you own the policy. A complete list of Funds available under the policy, including their annual expenses, may be
found at the back of this document.
Total
Annual Fund Expenses |
Minimum(%)
|
Maximum(%)
|
(expenses
deducted from the fund assets, including management fees, distribution and/or service (12b-1) fees and other expenses) |
0.26
|
4.14
|
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 15
Principal Risks
of Investing in the Policy
Policy
Risk |
What
It Means |
Risks
of Poor Investment Performance |
If you
direct your Net Premiums or transfer your Policy’s Value to a Subaccount that drops in value: |
|
•
You can lose cash values due to adverse investment experience. There is no minimum guaranteed cash value under the Subaccounts of the Variable Account. |
|
• If
the death benefit option is option 2, the death benefit could decrease from the death benefit on the previous Valuation Date due to adverse investment experience (but at no time will it be less than the Specified Amount). |
|
•
Your policy could Lapse due to adverse investment experience if the NLG is in not effect and you do not pay the premiums needed to maintain coverage. |
|
The
Policy is Unsuitable as a Short-term Savings Vehicle |
The
policy is a long-term investment that provides a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. |
|
The policy
is not suitable as a short-term investment. Your policy has little or no Cash Surrender Value in the early policy years. Surrender Charges apply to this policy for the first ten years. A new schedule of Surrender Charges will apply for ten years
after an increase in the Specified Amount. Surrender Charges can significantly reduce Policy Values. During early policy years the Cash Surrender Value may be less than the premiums you pay for the policy. |
|
Your
ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. |
|
|
|
Risks
of Policy Lapse |
If you do
not pay the premiums needed to maintain coverage: |
|
• We
will not pay a death benefit if your policy Lapses. |
|
•
Also, the Lapse may have adverse tax consequences. (See “Tax Risk.”) |
|
Your
policy may Lapse due to Surrender Charges. |
|
•
Surrender Charges affect the surrender value, which is a measure we use to determine whether your policy will enter a grace period (and possibly Lapse, which may have adverse tax consequences, see “Tax Risk”). A partial surrender will
reduce the Policy Value and the death benefit and may terminate the NLG. |
|
If you
take a loan against your policy. |
|
•
Taking a loan increases the risk of: |
|
—
policy Lapse (which may have adverse tax consequences, see “Tax Risk”); |
|
— a
permanent reduction of Policy Value; |
|
—
reducing the death benefit. |
|
•
Taking a loan may also terminate the NLG. |
|
Your
policy can Lapse due to poor investment performance. |
16 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Policy
Risk |
What
It Means |
|
•
Your policy could Lapse due to adverse investment experience if the NLG is not in effect and you do not pay the premiums needed to maintain coverage. |
|
•
The Lapse may have adverse tax consequences (See “Tax Risk”). |
|
Exchange/Replacement
Risk |
You
exchange or replace another policy to buy this one. |
|
•
You may pay Surrender Charges on the old policy. |
|
•
The new policy has Surrender Charges, which may extend beyond those in the old policy. |
|
•
The new policy’s Surrender Charges may be higher than the Surrender Charges in old policy. |
|
•
You may be subject to new incontestability and suicide periods on the new policy. |
|
•
You may be in a higher insurance risk rating category in the new policy which may increase the cost of the policy. |
|
• If
a partial surrender is taken prior to the exchange, you may have adverse tax consequences. |
|
•
The exchange may have adverse tax consequences. (See “Tax Risk.”) |
|
You use
cash values or dividends from another policy to buy this one, without fully surrendering the other policy. |
|
• If
you borrow from another policy to buy this one, the loan reduces the death benefit on the other policy. If you fail to repay the loan and accrued interest, you could lose the other coverage and you may be subject to income tax if the policy Lapses
or is surrendered with a loan against it. You may have adverse tax consequences. (See “Tax Risk.”) |
|
• If
you surrender cash value from another policy to buy this one, you could lose coverage on the other policy. Also, the surrender may be subject to income tax. You may have adverse tax consequences. (See “Tax Risk.”) |
|
Limitations
on Access to Cash Value Through Withdrawals |
Your
ability to take partial surrenders is limited. You cannot take partial surrenders during the first policy year. |
|
Possibility
of Adverse Tax Consequences |
A policy
may be classified as a “modified endowment contract” (MEC) for federal income tax purposes when issued. If a policy is not a MEC when issued, certain changes you make to the policy may cause it to become a MEC. |
|
•
Any taxable earnings come out first on surrenders or loans from a MEC policy or an assignment or pledge of a MEC policy. Investment in the policy comes out second. Federal income tax on these earnings will apply. State and local income taxes may
also apply. If you are under age 59½, a 10% penalty tax may also apply to these earnings. |
|
If you
exchange or replace another policy to buy this one. |
|
•
If you replace the old policy and it is not part of an exchange under Section 1035 of the Code, there may be adverse tax consequences if the total Policy Value (before reductions for outstanding loans, if any) exceeds your investment in the old
policy. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 17
Policy
Risk |
What
It Means |
|
• If
you replace the old policy as part of an exchange under Section 1035 of the Code and there is a loan on the old policy, there may be adverse tax consequences if the total Policy Value (before reductions for the outstanding loan) exceeds your
investment in the old policy. |
|
•
The new policy may be or may become a MEC even if the old policy was not a MEC. See discussion under “Modified Endowment Contracts”. |
|
•
The exchange may require a portion of the cash value of the old policy to be distributed in order to qualify the new policy as a life insurance policy for federal tax purposes. |
|
If your
policy Lapses or is fully surrendered with an outstanding policy loan, you may experience a significant tax cost. |
|
•
You will be taxed on any earnings in the policy. Generally, a policy has earnings to the extent the cash value plus any outstanding loans exceeds the investment in the contract. |
|
•
For non-MEC policies, it could be the case that a policy with a relatively small existing cash value could have significant as yet untaxed earnings that will be taxed upon Lapse or surrender of the policy. |
|
•
For MEC policies, earnings are the remaining earnings (any earnings that have not been previously taxed) in the policy, which could be a significant amount depending on the policy. |
|
The
investments in the Subaccount are not adequately diversified. |
|
• If
a policy fails to qualify as a life insurance policy because it is not adequately diversified, the policyholder must include in gross income the “income on the contract” (as defined in Section 7702(g) of the Code). |
|
Congress
may change how a life insurance policy is taxed at any time. |
|
The
interpretation of current tax law is subject to change by the Internal Revenue Service (IRS) or the courts at any time. |
|
•
You could lose any or all of the specific federal income tax attributes and benefits of a life insurance policy including tax-deferred accrual of cash values and income tax free death benefits. |
|
•
For non-MEC policies you could lose your ability to take non-taxable distributions or loans from the policy. |
|
•
Typically, changes of this type are prospective only, but some or all of the attributes could be affected. |
|
The IRS
may determine that you are the Owner of the Fund shares held by our Variable Account. |
|
•
You may be taxed on the income of each Subaccount to the extent of your interest in the Subaccount. |
|
Fund
Risks |
A
comprehensive discussion of the risks of each Fund in which the Subaccounts invest may be found in each Fund’s prospectus. Please refer to the prospectuses for the Funds for more information. The investment
advisers cannot guarantee that the Funds will meet their investment objectives. |
|
18 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Policy
Risk |
What
It Means |
Market
Risk |
Variable
life insurance is a complex vehicle that is subject to market risk, including the potential loss of principal invested. |
|
•
You may experience loss in Policy Value due to factors that affect the overall performance of the financial markets. |
|
|
|
|
|
|
|
Financial
Strength and Claims Paying Ability Risk |
All
insurance benefits, including the death benefit, and all guarantees, including those related to the Fixed Account and Indexed Accounts, are general account obligations that are subject to the financial strength and claims paying ability of
RiverSource of New York. |
|
Effects
of COVID-19 Pandemic |
The
coronavirus disease 2019 (“COVID-19”) public health crisis presents ongoing significant economic and societal disruption, and has driven significant volatility in the equity and interest rate markets. Any periods of continued high market
volatility, and your individual circumstances (e.g., your selected allocations and the timing of any purchase payments, transfers, or withdrawals), will affect values under your policy. As part of how we maintain our strong financial strength and
claims-paying ability, we continue to reserve amounts for our contractual obligations in accordance with significant state solvency regulations. The extent to which the COVID-19 pandemic may impact financial markets, investment performance under
your policy, and our financial strength and claims-paying ability will depend on future developments, which are highly uncertain and cannot be estimated, including the scope and duration of the pandemic and actions taken by governmental authorities,
market participants, and other third parties in response to the pandemic. |
|
We have
implemented comprehensive strategies to address the operating environment spurred by the pandemic. To promote the safety and security of our employees and to assure the continuity of our business operations, we have implemented a work from home
protocol for virtually all of our employee population, restricted business travel, and provided resources for complying with the guidance from the World Health Organization, the U.S. Centers for Disease Control and government authorities. We have
been satisfying elevated customer service volumes and our operations teams have continued to operate successfully and without disruptions in service. Our pandemic strategy is flexible and scalable and takes into consideration that a pandemic could
be widespread and may occur in multiple waves, affecting different communities at different times with varying levels of severity. We cannot, however, predict the impact that natural or man-made disasters and catastrophes, including the COVID-19
pandemic, may have over near- or longer-term periods. |
|
Cyber
Security and Systems Integrity |
Increasingly,
businesses are dependent on the continuity, security, and effective operation of various technology systems. The nature of our business depends on the continued effective operation of our systems and those of our business partners. This dependence
makes us susceptible to operational and information security risks from cyber-attacks. |
|
These
risks may include the following: |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 19
Policy
Risk |
What
It Means |
|
•
the corruption or destruction of data; |
|
•
theft, misuse or dissemination of data to the public, including your information we hold; and |
|
•
denial of service attacks on our website or other forms of attacks on our systems and the software and hardware we use to run them. |
|
These
attacks and their consequences can negatively impact your policy, your privacy, your ability to conduct transactions on your policy, or your ability to receive timely service from us. There can be no assurance that we, the underlying Funds in your
policy, or our other business partners will avoid losses affecting your policy due to any successful cyber-attacks or information security breaches. |
|
Conflict
of Interest Risks Related to Certain Funds Advised by Columbia Management |
We are an
affiliate of Ameriprise Financial, Inc., which is the parent company of Columbia Management Investment Advisers, LLC (Columbia Management). Columbia Management acts as investment adviser to several Fund of funds, including managed volatility Funds.
As such, it retains full discretion over the investment activities and investment decisions of the Funds. These Funds invest in other registered mutual funds. In providing investment advisory services for the Funds and the underlying funds in which
those Funds respectively invest, Columbia Management is, together with its affiliates, including us, subject to competing interests that may influence its decisions. These competing interests typically arise because Columbia Management or one of its
affiliates serves as the investment adviser to the underlying Funds and may provide other services in connection with such underlying Funds, and because the compensation we and our affiliates receive for providing these investment advisory and other
services varies depending on the underlying Fund. |
|
Managed
Volatility Funds’ Risks |
Managed
volatility Funds employ a strategy designed to reduce overall volatility and downside risk. These Funds may also be used in conjunction with guaranteed living benefit riders we offer with various annuity contracts. Conflicts may arise because the
manner in which these Funds and their strategies are executed by Columbia Management are expected to benefit us by reducing our financial risk and expense in offering guaranteed living benefit riders. Managed volatility Funds employ a strategy to
reduce overall volatility and downside risk when markets are declining and market volatility is high. A successful strategy may result in less gain in your Policy Value during rising markets with higher volatility when compared to Funds not
employing a managed volatility strategy. Although an investment in the managed volatility Funds may mitigate declines in your Policy Value due to declining equity markets, the Funds’ investment strategies may also curb or decrease your Policy
Value during periods of positive performance by the equity markets. There is no guarantee that any of the Funds’ strategies will be successful. Costs associated with running a managed volatility strategy may also adversely impact the
performance of managed volatility Funds. |
|
20 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Loads, Fees and
Charges
Policy charges primarily compensate us
for:
•
|
providing the insurance
benefits of the policy; |
•
|
issuing the policy;
|
•
|
administering the policy;
|
•
|
assuming certain risks in
connection with the policy; and |
•
|
distributing
the policy. |
We deduct some of these
charges from your premium payments. We deduct others periodically from your Policy Value in the Fixed Account, Indexed Accounts and/or Subaccounts. We may also assess a charge if you surrender your policy or the policy Lapses. We may profit from one
or more of the charges we collect under the policy. We may use these profits for any corporate purpose.
Transaction Fees
Surrender Charge
If you surrender your policy or the policy Lapses during the
first ten policy years or in the ten years following an increase in Specified Amount, we will reduce your Policy Value, minus Indebtedness, by the applicable Surrender Charge.
The Surrender Charge primarily reimburses us for costs of
issuing the policy, such as processing the application (mostly underwriting) and setting up computer records. It also partially pays for commissions, advertising and printing the prospectus and sales literature.
The maximum Surrender Charge for the initial Specified Amount
is shown in your policy. It is based on the Insureds’ Insurance Ages, sexes, Risk Classifications and the initial Specified Amount. The maximum Surrender Charge for the initial Specified Amount will remain level for the first five policy years
and then decrease monthly until it is zero at the end of the tenth policy year. If you increase the Specified Amount, an additional maximum Surrender Charge will apply. The additional maximum Surrender Charge will be based on the Insureds’
Attained Insurance Age at the time of the increase, sexes, Risk Classifications and the amount of the increase. The additional maximum surrender charges will remain level for the first five years following the increase and then decrease monthly
until it is zero at the end of the tenth year following the increase.
The following table illustrates the maximum Surrender Charge
for for two Insureds: male, Insurance Age 55 qualifying for standard non-tobacco rates and female, Insurance Age 55, qualifying for super preferred non-tobacco rates. We assume the Specified Amount to be $1,500,000.
Lapse
or surrender at beginning of year |
Maximum
Surrender Charge |
1
|
$27,689.23
|
2
|
27,689.23
|
3
|
27,689.23
|
4
|
27,689.23
|
5
|
27,689.23
|
6
|
27,227.12
|
7
|
21,688.81
|
8
|
16,151.66
|
9
|
10,613.35
|
10
|
5,076.20
|
11
|
0.00
|
The maximum Surrender Charge is the
number of thousands of dollars of initial Specified Amount multiplied by a rate based on the youngest Insured's issue age multiplied by a rate based on the oldest Insured's issue age. Both rates are based on Risk Classifications of the Insureds
(i.e. standard or nontobacco). In the example above, the initial Specified Amount is $1,500,000 the Insureds are male, Insurance Age 55 qualifying for standard nontobacco rates and female, Insurance Age 55 qualifying for super preferred rates; the
youngest Insured's is $23.788 and the oldest Insured's rate is $0.7760. The maximum Surrender Charge is $1,500 multiplied by $23.788 and $0.7760, which equals $27,689.23.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 21
Partial
Surrender Charge
If you surrender part of the value of
your policy, we will charge you $25 (or 2% of the amount surrendered, if less). We guarantee that this charge will not increase for the duration of your policy.
Premium Expense Charge
We deduct this charge from each premium payment. We credit the
amount remaining after the deduction, called the Net Premium, to the accounts you have selected. The premium expense charge is 4% of each premium payment. The premium expense charge, in part, compensates us for expenses associated with administering
and distributing the policy, including agents’ commissions, advertising and printing of prospectuses and sales literature. (The Surrender Charge, discussed under “Surrender Charge”, and the administrative charge, discussed under
“Administrative Charge” below, also may partially compensate us for these expenses.) The premium expense charge also may compensate us for paying taxes imposed by the State of New York on premiums received by insurance companies. We
reserve the right to change the premium expense charge in the future based on our expectations of future investment earnings, persistency and expenses, but guarantee that it will never exceed 4%.
Overloan Protection Benefit
If you exercise this benefit, we will charge you 3% of your
Policy Value.
Policy Split Option Rider
If you exercise this benefit, we will charge you $250.
Base Policy Charges
Monthly Deduction
On each Monthly Date we deduct from the value of your policy
in the Fixed Account, Indexed Accounts and/or Subaccounts an amount equal to the sum of:
1. the cost of insurance for the policy month;
2. the policy fee shown in your policy;
3. the monthly administrative charge;
4. the monthly mortality and expense risk charge;
5. the Indexed Account charge; and
6. charges for any optional insurance benefits provided by
rider for the policy month.
We explain each of the six
components below.
You specify, in your policy
application, what percentage of the monthly deduction from 0% to 100% you want us to take from the Fixed Account and from each of the Subaccounts. You may change these percentages for future monthly deductions by writing to us.
We will take monthly deductions from the Fixed Account and the
Subaccounts on a Pro Rata Basis if:
•
|
you do not specify the
accounts from which you want us to take the monthly deduction; or |
•
|
the value
in the Fixed Account or any Subaccount is insufficient to pay the portion of the monthly deduction you have specified. |
When the Fixed Account, minus any Indebtedness, and the
Subaccounts are exhausted, the monthly deduction will be taken from the Indexed Accounts. See “Order of Deductions from Policy Value” for further discussion.
If the Cash Surrender Value of your policy is not enough to
cover the monthly deduction on a monthly anniversary, the policy may Lapse. However, the policy will not Lapse if the NLG is in effect and the premium payment requirements have been met. (See the “No-Lapse Guarantee,” “Grace
Period” and “Reinstatement” for further discussion.)
The following are charged each month prior to the youngest
Insured’s Attained Insurance Age 120:
1.
|
Cost of Insurance: primarily, this is the cost of providing the death benefit under your policy. It depends on: |
•
|
the amount of the death
benefit; |
•
|
the Policy Value; and
|
•
|
the cost
of insurance rate. |
22 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
The cost of
insurance for a policy month is calculated as: [a × (b – c)] + d
where:
“a”
|
is the monthly cost of
insurance rate based on the each Insured’s Insurance Age, duration, sex and Risk Classification. Generally, the cost of insurance rate will increase as the Attained Insurance Age of each of the Insureds
increases. |
|
We set the rates based on
our expectations of mortality, future investment earnings, persistency and expenses. Our current monthly cost of insurance rates are less than the maximum monthly cost of insurance rates guaranteed in the policy. We reserve the right to change
rates from time to time; any change will apply to all individuals of the same Risk Classification. However, rates will not exceed the guaranteed maximum monthly cost of insurance rates shown in your policy. All rates are based on the 2017
Commissioners Standard Ordinary (CSO) Smoker and Nonsmoker Mortality Tables, Age Nearest Birthday. |
“b”
|
is the death benefit on the Monthly Date divided by 1.0008295381 (which reduces our Net Amount at Risk, solely for computing the cost of insurance, by taking into account assumed monthly earnings at an annual rate of 1%). |
“c”
|
is the Policy Value on the Monthly Date. At this point, the Policy Value has been reduced by the administrative charge, mortality and expense risk charge, the policy fee and any charges for optional riders. |
“d”
|
is any flat
extra insurance charges we assess as a result of special underwriting considerations. |
2. Policy fee: $10.00 per
month for initial Specified Amounts below $2,000,000 and $0.00 per month for initial Specified Amounts of $2,000,000 and above. This charge primarily reimburses us for expenses of and administering and distributing the policy, such as processing
claims, maintaining records, making policy changes and communicating with Owners. We reserve the right to change the charge in the future, but guarantee that it will never exceed $15.00 per month.
3. Administrative charge: This
charge reimburses us, in part, for expenses associated with issuing the policy, such as processing the application and underwriting the policy. It also partially reimburses us for commissions or other compensation paid to selling firms, advertising
and printing of the prospectus and sales literature. We reserve the right to change the administrative charge based on our expectations of future investment earnings, persistency and expenses. However, it will never exceed the guaranteed
administrative charge shown in the Policy Data section of the policy.
4. Mortality and expense risk charge: compensates us for assuming the mortality and expense risks under the policy. Currently, the mortality and expense risk charge is 0%. We reserve the right to change the charge in the future, but guarantee that it will
never exceed the annual rate of 0.60% applied monthly to the Variable Account Value. (See “Mortality and Expense Risk Charge” for complete discussion.)
“a”
is the Variable Account Value; and
“b”
is the mortality and expense risk charge shown in the “Charges Other than Fund Operating Expenses” section of this prospectus.
The charge primarily compensates us for:
•
|
Mortality risk — the risk that the cost of insurance charge will be insufficient to meet actual claims. |
•
|
Expense
risk — the risk that the policy fee, administrative charge and the Surrender Charge (described above) may be insufficient to cover the cost of administering the policy. |
Any profit from the mortality and expense risk charge would be
available to us for any proper corporate purpose including, among others, payment of sales and distribution expenses, which we do not expect to be covered by the premium expense charge and Surrender Charges discussed earlier. We will make up any
further deficit from our general assets. We reserve the right to change the mortality and expense risk rate based on our expectations of mortality, reinsurance costs, future investment earnings, persistency and expenses. However, it will never
exceed the guaranteed mortality and expense risk rate shown in the Policy Data section of the policy.
5. Indexed Account charge:
compensates us for certain administrative, investment and other expenses we assume in making available the Indexed Account options. The charge is assessed as an asset-based charge and is based on the value of the Segments of an Indexed Account on
the Monthly Date.
6. Optional Insurance Benefit Charges: Charges for any optional benefits you add to the policy by rider.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 23
Optional
Insurance Benefits
CHARGE
|
WHEN
CHARGE IS DEDUCTED |
AMOUNT
DEDUCTED |
Policy
Split Option Rider (PSO) |
Upon
exercise of the Rider. |
$250
|
|
Overloan
Protection Benefit (OPB) |
Upon
exercise of benefit. |
3% of the
Policy Value. |
|
Four-Year
Term Insurance Rider (FYT)(a),(b) |
Monthly.
|
Monthly rate per $1,000 of the cost of insurance amount: |
Minimum: $0.00000 — Female, Super Preferred, Nontobacco, Insurance Age 20; Female, Super Preferred, Nontobacco, Insurance Age 20, Duration 1. |
Maximum: $2.3592616 — Male, Standard Tobacco, Insurance Age 85; Male, Standard Tobacco, Insurance Age 85; Duration 4. |
|
Representative
Insured: $0.0000147 – Female, Super Preferred Nontobacco, Insurance Age 55; Male, Standard Nontobacco, Age 55; Duration 1. |
|
Accounting
Value Increase Rider (AVIR)(a) |
Monthly.
|
Monthly rate per $1,000 of Specified Amount: |
Minimum: $0.0329 — Female, Nontobacco, Insurance, Age 85; Male Nontobacco, Insurance Age 85. |
Maximum: $0.0475 — Female, Nontobacco, Insurance Ages 35-55; Male Nontobacco, Insurance Ages 35-55. |
|
Representative
Insured: $0.0475 — Female, Nontobacco, Age 55; Male, Nontobacco, Insurance Age 55. |
|
(a) |
This charge varies based on
individual characteristics. The charges shown in the table may not be representative of the charge you will pay. For information about the charge you would pay, contact your sales representative or RiverSource of New York at the address or telephone
number shown on the first page of this prospectus. |
(b) |
This rider
will terminate if one of the following circumstances occurs: (1) four-year Anniversary date shown in the policy; or (2) if the PSO rider is exercised. |
24 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Payments to the
Selling Firms
We may use compensation plans which vary by
selling firm. In general, we pay selling firms a commission of up to 90% of the initial target premium in the first policy year, plus up to 2.50% of all premiums in excess of the target premium during the first policy year and 2% on renewal premiums
after the first policy year. We determine the target premium, which varies by age, gender, and Risk Classification of each Insured at the time of issue as well as by the Specified Amount of the policy. We pay additional commissions to selling firms
if an increase in coverage occurs. We do not pay or withhold payment of commissions based on how you choose to allocate your premiums to the Subaccounts.
Total Annual Operating Expenses of the Funds
Any applicable management fees and other expenses of the Funds
are deducted from, and paid out of, the assets of the Funds as described in each Fund’s prospectus.
Effect of Loads, Fees and Charges
Your death benefits, Policy Values and Cash Surrender Values
may fluctuate due to an increase or decrease in the following charges:
•
|
Surrender Charges;
|
•
|
cost of optional insurance
benefits; |
•
|
policy fees; |
•
|
administrative charges;
|
•
|
mortality and expense risk
charges; |
•
|
Indexed Account charges;
|
•
|
cost of insurance charges;
and |
•
|
annual
operating expenses of the Funds, including management fees and other expenses. |
In addition, your death benefits, Policy Values and Cash
Surrender Values may change daily as a result of the investment experience of the Subaccounts.
Other Information on Charges
We may reduce or eliminate various fees and charges on a basis
that is fair and reasonable and applies to all policy Owners in the same class. We may do this for example when we incur lower sales costs and/or perform fewer administrative services than usual.
Policy Rights
The purpose of the policy is to provide life insurance
protection on the life of two Insureds and to potentially build Policy Value. The policy is a long-term investment that provides a death benefit that we pay to the Beneficiary upon the last surviving Insured’s death. The Insureds are the
people whose lives are insured by the policy. The Owner is the entity or entities to which, or individuals to whom, we issue the policy or to whom you subsequently transfer ownership. The Owner is authorized to make changes to the policy and request
transactions involving Policy Value. In the prospectus “you” and “your” refer to the Owner.
Initially, the Beneficiary will be the person you designate in
your application for the policy. You may change the Beneficiary by giving us written notice, subject to requirements and restrictions stated in the policy. If you do not designate a Beneficiary, or if the designated Beneficiary dies before the last
surviving Insured’s death, the Beneficiary will be you, if living. If you are not living, the Beneficiary will be your estate.
Transfers Among the Fixed Account, Indexed Accounts and
Subaccounts
You may transfer Policy Value from one
Subaccount to another or between Subaccounts and the Fixed Account or Indexed Accounts. Certain restrictions apply to transfers involving the Fixed Account and the Indexed Accounts. We will process your transfer on the Valuation Date we receive your
request, subject to the following limitations. If we receive your transfer request at our Service Center in Good Order 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 Service Center in Good Order 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. Before making a transfer, you should consider the risks involved in changing investments. We may suspend or modify transfer privileges at any time.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 25
Market Timing
and Disruptive Trading Practices
Market timing can
reduce the value of your investment in the policy. If market timing causes the returns of an underlying Fund to suffer, Policy 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 policy and your Beneficiary(ies) under the policy a financial loss.
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 policy 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 policy. 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 restrictive than the market
timing policies and procedures we apply to transfers among the Subaccounts of the policy, 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 |
•
|
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. |
Funds available as investment options under the policy 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. Also, 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.
In order to help protect you and the underlying Fund from the
potentially harmful effects of market timing activity, we apply the following market timing policy to discourage frequent transfers of Policy Value among the Subaccounts of the Variable Account:
We try to distinguish market timing from
transfers that we believe are not harmful, such as periodic rebalancing for purposes of an asset allocation, dollar-cost averaging or an asset rebalancing program that may be described in this prospectus. 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 policy Owner who makes more than three Subaccount transfers in any 90 day period. We also reserve the right to
refuse any transfer request, if, 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 policy and the terms of your policy. 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; |
•
|
suspending the transfer
privilege; or |
•
|
modifying
instructions under an automated transfer program to exclude a restricted Fund if you do not provide new instructions. |
Subject to applicable state law and the terms of each policy,
we will apply the transfer policy described above to all policy Owners uniformly in all cases. We will notify you in writing after we impose any modification, restriction or suspension of your transfer rights.
Because we exercise discretion in applying the restrictions
described above, we cannot guarantee that we will be able to identify and restrict all market timing activity. In addition, state law and the terms of some policies 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 Policy Values.
26 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
In addition to the
market timing policy described above, which applies to transfers among the Subaccounts within your policy, 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 policy 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 and exchange of Fund shares. This assistance may include, but not be limited to, providing the
underlying Fund upon request with your Social Security Number, Taxpayer Identification Number or other United States government-issued identifier and the details of your policy 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 Policy 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 policy 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 policy, 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. For example, while we will attempt to execute transfers permitted under any asset allocation, dollar-cost averaging or asset rebalancing program that may
be described in this prospectus, we cannot guarantee that an underlying Fund’s market timing policies and procedures will do so. 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 policy, 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. |
•
|
Funds
that are available as investment options under the policy 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. |
For more information about
the market timing policies and procedures of an underlying Fund, and the risks that market timing pose to that Fund and to determine whether an underlying Fund has adopted a redemption fee, see that Fund’s prospectus.
Transfer Policies between the Fixed Account and
Subaccounts
•
|
You must make transfers from
the Fixed Account and any subaccounts during a 30-day period starting on a Policy Anniversary, except for automated transfers, which can be set up for monthly, quarterly or semiannual transfer periods. If the amount in the Fixed Account is less than
$100, the entire amount can be transferred at any time. |
•
|
If we receive your request
to transfer amounts from the Fixed Account within 30 days before the Policy Anniversary, the transfer will become effective on the anniversary. |
•
|
If we receive your request
on or within 30 days after the Policy Anniversary, the transfer will be effective on the day we receive it. |
•
|
We will not accept requests
for transfers from the Fixed Account at any other time. |
•
|
If you
have made a transfer from the Fixed Account to one or more Subaccounts, you may not make a transfer from those Subaccounts back to the Fixed Account until the next Policy Anniversary. |
Minimum Transfer Amounts
From a Subaccount to another Subaccount, the Fixed Account or
an Indexed Account:
•
|
For mail and telephone
transfers — $250 or the entire Subaccount balance, whichever is less. |
•
|
For
automated transfers — $50. |
From the Fixed Account to a Subaccount:
•
|
For mail and telephone
transfers — $250 or the entire Fixed Account balance minus any outstanding Indebtedness, whichever is less. |
•
|
For
automated transfers — $50. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 27
Maximum
Transfer Amounts
The maximum amount that may be
transferred from the Fixed Account to one or more of the Indexed Accounts is the Fixed Account Value minus any Indebtedness minus the value of a transfer to one or more of the Subaccounts occurring on the same day. The amount of any such transfer to
an Indexed Account will be allocated to the corresponding Interim Account on the date it is received.
Maximum Number of Transfers Per Year From the
Subaccounts
You may make transfers by mail or telephone.
We reserve the right to limit transfers of value from a Subaccount to one or more Subaccounts or to the Fixed Account to five per policy year. We may suspend or modify this transfer privilege at any time with any necessary approval of the Securities
and Exchange Commission. In addition to transfers by mail or telephone, you may make automated transfers subject to the restrictions described below.
Transfer Restriction Period – Indexed Accounts
A transfer restriction period is a 12-month period of time
which begins on any date there is loan or withdrawal that is not part of a systematic distribution program from any Segment of the Indexed Account. Any deduction from a Segment of the Indexed Accounts due solely to an increase in Indebtedness from
interest charged on a loan will not trigger the start of a transfer restriction period.
During this period, the following restrictions apply:
•
|
no transfers from the Fixed
Account or Subaccounts to any Indexed Account will be allowed; and |
•
|
Indexed
Account premium allocation percentages will change to allocate all premium and loan repayments to the Fixed Account. |
We reserve the right to shorten or eliminate the transfer
restriction period.
Once the transfer restriction period
has expired, you may submit a written or phone request to transfer any amount in the Fixed Account or Subaccounts to any Indexed Account or to change the premium allocation percentage.
Transfers Not Allowed
Transfers of value are not allowed for the following
conditions:
•
|
from an Indexed Account
Segment prior to Segment maturity, except transfers due to policy loans taken or interest charged on Indebtedness; |
•
|
from the Fixed Account or
any Subaccount to any Indexed Account when the policy is in a transfer restriction period; |
•
|
from the
Fixed Account to any Subaccount or Indexed Account after the youngest Insured’s Attained Insurance Age 120 anniversary. |
Transfers at the Youngest Insured’s Attained Insurance
Age 120 Anniversary
On the youngest Insured’s
Attained Insurance Age 120 anniversary, any Policy Value in the Subaccounts will be transferred to the Fixed Account and may not be transferred to any Indexed Account.
Automated Transfers
In addition to written and telephone requests, you can arrange
to have Policy Value transferred from one account to another automatically. Your sales representative can help you set up an automated transfer.
Automated transfer policies
•
|
Only one automated transfer
arrangement can be in effect at any time. |
•
|
You may transfer all or part
of the value of a Subaccount to one or more of the other Subaccounts, one or more of the Indexed Accounts and/or to the Fixed Account. |
•
|
You may transfer all or part
of the Fixed Account Value, minus Indebtedness, to one or more of the Subaccounts and/or one or more of the Indexed Accounts. |
•
|
Either the Fixed Account or
one or more of the Subaccounts can be used as the source of Funds for any automated transfer arrangement. The Indexed Accounts may not be used as the source of Funds for any automated transfer arrangement. |
•
|
You can start or stop this
service by written or phone request. You must allow seven days for us to change any instructions that are currently in place. |
•
|
The
minimum transfer amount is $50. |
28 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
•
|
You cannot make automated
transfers from the Fixed Account to one or more Subaccounts in an amount that, if continued, would deplete the Fixed Account within 12 months. There is no such restriction on automated transfer arrangements that transfer value from the Fixed Account
to one or more of the Indexed Accounts only. |
•
|
If your policy has entered a
transfer restriction period that will last for 12 months, during this period transfers from the Fixed Account or the Subaccounts to any Indexed Account will not be allowed. Any automated transfer arrangement that moves money to an Indexed Account
will be terminated. Premiums and loan repayments allocated to an Indexed Account during this period will be redirected to the Fixed Account. |
•
|
If you made a transfer from
the Fixed Account to one or more Subaccounts, you may not make a transfer from those Subaccounts back to the Fixed Account until the next Policy Anniversary. |
•
|
If you submit your automated
transfer request with an application for a policy, automated transfers will not take effect until the policy is issued. |
•
|
The balance in any account
from which you make an automated transfer must be sufficient to satisfy your instructions. If not, we will stop the automated arrangement. |
•
|
Automated transfers are
subject to all other policy provisions and terms including provisions relating to the transfer of money between the Fixed Account and the Subaccounts. (Exception: The maximum number of transfers per year provision does not apply to automated
transfers.) |
•
|
You may
make automated transfers by choosing a schedule we provide. |
Automated Dollar-Cost Averaging
You can use automated transfers to take advantage of
dollar-cost averaging — investing a fixed amount at regular intervals. For example, you might have a set amount transferred monthly from a relatively conservative Subaccount to a more aggressive one, or to several others.
This systematic approach can help you benefit from
fluctuations in Accumulation Unit values caused by fluctuations in the market values of the underlying Fund. Since you invest the same amount each period, you automatically acquire more units when the market value falls, fewer units when it rises.
The potential effect is to lower your average cost per unit. There is no charge for dollar-cost averaging.
How dollar-cost averaging works
By
investing an equal number of dollars each month… |
|
Month
|
Amount
Invested |
Accumulation
Unit Value |
Number
of Units Purchased |
|
|
Jan
|
$
100 |
$
20 |
5.00
|
|
|
Feb
|
100
|
18
|
5.56
|
you
automatically buy more units when the per unit market price is low… |
|
Mar
|
100
|
17
|
5.88
|
→
|
Apr
|
100
|
15
|
6.67
|
|
|
May
|
100
|
16
|
6.25
|
|
|
June
|
100
|
18
|
5.56
|
|
|
July
|
100
|
17
|
5.88
|
and
fewer units when the per unit market price is high. |
|
Aug
|
100
|
19
|
5.26
|
→
|
Sept
|
100
|
21
|
4.76
|
|
|
Oct
|
100
|
20
|
5.00
|
You have paid an average price of
only $17.91 per unit over the ten 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 this strategy involves continuous investing, your success with dollar-cost averaging 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.
You may make dollar-cost averaging transfers by choosing a
schedule we provide.
Asset Rebalancing
Subject to availability, you can contact us in writing or by
phone to reallocate the variable Subaccount portion of your Policy Value according to the percentages (in whole percentage amounts) that you choose. The Policy Value must be at least $2,000 at the time the rebalance is set up. Asset rebalancing does
not apply to the Fixed Account or Indexed
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 29
Accounts. We automatically will
rebalance the variable Subaccount portion of your Policy Value either quarterly, semiannually or annually. The period you select will start to run on the date you specify. On the first Valuation Date of each of these periods, we automatically will
rebalance your Policy Value so that the value in each Subaccount matches your current Subaccount percentage allocations. We rebalance by transferring Policy Value between Subaccounts. Transfers for this purpose are not subject to the maximum number
of transfers provisions above.
You can change your
percentage allocations or your rebalancing period at any time by contacting us in writing or by phone. We will restart the rebalancing period you selected as of the date you specify. You may discontinue auto rebalancing at any time by sending us a
written request or by other methods agreed to by us. You must allow 30 days for us to change any instructions that currently are in place. There is no charge for asset rebalancing. For more information on asset rebalancing, contact your sales
representative.
RiverSource Life of NY
We are a stock life insurance company organized in 1972 under
the laws of the State of New York and are located at 20 Madison Avenue Extension, Albany, NY 12203. Our service address is: RiverSource Life Insurance Co. of New York, 70500 Ameriprise Financial Center, Minneapolis, MN 55474. We are a wholly-owned
subsidiary of RiverSource Life Insurance Company, which is a wholly-owned subsidiary of Ameriprise Financial, Inc.
We conduct a conventional life insurance business in the State
of New York. Our primary products currently include fixed and variable annuity contracts and life insurance policies.
The Variable Account and the Funds
The Variable Account: The
Variable Account consists of a number of Subaccounts, each of which invests in shares of a particular Fund. Income, gains and losses of each Subaccount are credited to or charged against the assets of that Subaccount alone. Therefore, the investment
performance of each Subaccount is independent of the investment performance of our company assets. We will not charge a Subaccount with the liabilities of any other Subaccount or with the liabilities of any other business we conduct. We are
obligated to pay all amounts promised to you under the policies.
The Funds: The policy
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 policy 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 Fund providers 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.
|
•
|
Funds
available under the policy: We seek to provide a broad array of underlying Funds taking into account the fees and charges imposed by each Fund and the policy charges we impose. We select the underlying Funds in
which the Subaccounts initially invest and when there is a substitution (see “Substitution of Investments”). We also make all decisions regarding which Funds to retain in a policy, which Funds to add to a policy and which Funds will no
longer be offered in a policy. 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, including but not limited to expense payments |
30 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
|
and non-cash compensation
that 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 expenses incurred with respect to the Fund. |
•
|
Money market Fund yield: In low interest rate environments, money market Fund yields may decrease to a level where the deduction of fees and charges associated with your policy could result in negative net performance. |
•
|
Risks and conflicts of
interest with certain Funds advised by Columbia Management: We are an affiliate of Ameriprise Financial, Inc., which is the parent company of Columbia Management Investment Advisers, LLC (Columbia Management).
Columbia Management acts as investment adviser to several Fund of funds, including managed volatility Funds. As such, it retains full discretion over the investment activities and investment decisions of the Funds. These Funds invest in other
registered mutual funds. In providing investment advisory services for the Funds and the underlying funds in which those Funds respectively invest, Columbia Management is, together with its affiliates, including us, subject to competing interests
that may influence its decisions. These competing interests typically arise because Columbia Management or one of its affiliates serves as the investment adviser to the underlying Funds and may provide other services in connection with such
underlying Funds, and because the compensation we and our affiliates receive for providing these investment advisory and other services varies depending on the underlying Fund. |
•
|
Volatility and volatility
management risk with the managed volatility funds: These Funds invest in other registered mutual funds. In addition, managed volatility Funds employ a strategy designed to reduce overall volatility and downside
risk. These types of Funds are available under the policies and one or more of these Funds may be offered in other variable annuity and variable life insurance products offered by us. These Funds may also be used in conjunction with guaranteed
living benefit riders we offer with various annuity contracts. |
|
Conflicts may arise because
the manner in which these Funds and their strategies are executed by Columbia Management are expected to benefit us by reducing our financial risk and expense in offering guaranteed living benefit riders. Managed volatility Funds employ a strategy
to reduce overall volatility and downside risk when markets are declining and market volatility is high. A successful strategy may result in less gain in your Policy Value during rising markets with higher volatility when compared to Funds not
employing a managed volatility strategy. Although an investment in the managed volatility Funds may mitigate declines in your Policy Value due to declining equity markets, the Funds’ investment strategies may also curb or decrease your Policy
Value during periods of positive performance by the equity markets. There is no guarantee that any of the Funds’ strategies will be successful. Costs associated with running a managed volatility strategy may also adversely impact the
performance of managed volatility Funds. |
|
While Columbia Management is
the investment adviser to the managed volatility Funds, it provides no investment advice to you as whether an allocation to the Funds is appropriate for you. You must decide whether an investment in these Funds is right for you. Additional
information on the Funds, including risks and conflicts of interest, is included in their respective prospectuses. Columbia Management advised Fund of funds and managed volatility Funds and their investment objectives are listed in the table below.
|
•
|
Revenue we receive from the
Funds and potential conflicts of interest: |
|
Expenses We May Incur on
Behalf of the Funds |
|
When a Subaccount invests in
a Fund, the Fund holds a single account in the name of the Variable Account. As such, the Variable Account is actually the shareholder of the Fund. We, through our Variable Account, aggregate the transactions of numerous policy Owners and submit net
purchase and redemption requests to the Funds on a daily basis. In addition, we track individual policy Owner transactions and provide confirmations, periodic statements, and other required mailings. These costs would normally be borne by the Fund,
but we incur them instead. |
|
A complete list of why we may
receive this revenue, as well as sources of revenue, is described in detail below. |
|
Payments the Funds May Make
to Us |
|
We or our affiliates may
receive from each of the Funds, or their affiliates, compensation including but not limited to expense payments. These payments are designed in part to compensate us for the expenses we may incur on behalf of the Funds. In addition to these
payments, the Funds may compensate us for wholesaling activities or to participate in educational or marketing seminars sponsored by the Funds. |
|
The amount, type, and manner
in which the revenue from these sources is computed vary by Fund. |
|
Conflicts of Interest These
Payments May Create |
|
When we
determined the charges to impose under the policies, we took into account anticipated payments from the Funds. If we had not taken into account these anticipated payments, the charges under the policies would have been higher. Additionally, the
amount of payment we receive from a Fund or its affiliate may create an incentive for us to include that Fund as an investment option and may influence our decision regarding which Funds to include in the Variable Account as Subaccount options for
policy Owners. Funds that offer lower payments or no payments may also have corresponding expense structures that are lower, resulting in decreased overall fees and expenses to shareholders. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 31
|
We offer Funds managed by
our affiliates Columbia Management and Columbia Wanger Asset Management, LLC (Columbia Wanger). We have additional financial incentive to offer our affiliated Funds because additional assets held by them generally results in added revenue to us and
our parent company, Ameriprise Financial, Inc. Additionally, employees of Ameriprise Financial, Inc. and its affiliates, including our employees, may be separately incented to include the affiliated Funds in the products, as employee compensation
and business unit operating goals at all levels are tied to the success of the company. Currently, revenue received from our affiliated Funds comprises the greatest amount and percentage of revenue we derive from payments made by the Funds.
|
|
The Amount of Payments We
Receive from the Funds |
|
We or our affiliates receive
revenue which ranges up to 0.65% of the average daily net assets invested in various Funds offered through this and other variable life insurance and annuity contracts we and our affiliates issue. |
|
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 revenue from the Funds, including but not
limited to expense payments and non-cash compensation, for various purposes: |
•
|
Training and educating sales
representatives who sell the policies. |
•
|
Granting access to our
employees whose job it is to promote sales of the policies by authorized selling firms and their sales representatives, and granting access to sales representatives of our affiliated selling firms. |
•
|
Activities or services we or
our affiliates provide that assist in the promotion and distribution of the policies including promoting the Funds available under the policies to policy Owners, authorized selling firms and sales representatives. |
•
|
Providing sub-transfer
agency and shareholder servicing to policy Owners. |
•
|
Promoting, including and/or
retaining the Fund’s investment portfolios as underlying investment options in the policies. |
•
|
Furnishing personal services
to policy Owners, including education of policy Owners regarding the Funds, answering routine inquiries regarding a Fund, maintaining accounts or providing such other services eligible for service fees as defined under the rules of the Financial
Industry Regulatory Authority (FINRA). |
•
|
Subaccounting
services, transaction processing, recordkeeping and administration. |
Sources of revenue received from affiliated
Funds: The affiliated Funds are managed by Columbia Management or Columbia Wanger. The sources of revenue we receive from these affiliated Funds, or from the Funds’ affiliates, may include, but are not
necessarily limited to, the following:
•
|
Assets of the Fund’s
adviser, subadviser, transfer agent, distributor 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. |
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, distributor 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 receive this revenue in the form of a cash payment. |
Please refer to the prospectuses for the Funds for more
information. These prospectuses are available by contacting us at the address or telephone number shown on the first page of this prospectus.
Relationship Between Funds and Subaccounts
Each Subaccount buys shares of the appropriate Fund at net
asset value without a sales charge. Dividends and capital gain distributions from a Fund are reinvested at net asset value without a sales charge and held by the Subaccount as an asset. Each Subaccount redeems Fund shares without a charge (unless
the Fund imposes a redemption fee) to the extent necessary to make death benefit or other payments under the policy.
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 (or are no longer the most suitable) for the Subaccounts. |
32 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
If any of these
situations occur, 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:
•
|
add new Subaccounts;
|
•
|
combine any two or more
Subaccounts; |
•
|
transfer assets to and from
the Subaccounts or the Variable Account; and |
•
|
eliminate
or close any Subaccounts. |
We will
notify you of any substitution or change.
In the event
of any such substitution or change, we may amend the policy and take whatever action is necessary and appropriate without your consent or approval. We will obtain any required prior approval of the SEC or state insurance departments before making
any substitution or change.
Voting Rights
As a policy Owner with investments in the Subaccounts, you may
vote on important Fund matters. We calculate votes separately for each Subaccount. We will send notice of shareholders’ meetings, proxy materials and a statement of the number of votes to which you are entitled.
We are the legal owner of all Fund shares and therefore hold
all voting rights. However, to the extent required by law, we will vote the shares of each Fund according to instructions we receive from policy Owners. We will vote shares for which we have not received instructions and shares that we
or our affiliates own in our own names in the same proportion as the votes for which we received instructions. As a result of this proportional voting, in cases when a small number of policy Owners vote, their votes will have a greater impact
and may even control the outcome.
Changes to the
Variable Account
We reserve the right to do any of the
following:
•
|
cease offering any
Subaccount; |
•
|
add or remove Variable
Accounts; |
•
|
combine the assets of the
Variable Account with the assets of any of our other separate accounts; |
•
|
register or deregister the
Variable Account; |
•
|
operate the Variable Account
as a management investment company, unit investment trust, or any other form permitted under securities or other law; |
•
|
run the Variable Account
under the direction of a committee, board, or other group; or |
•
|
make any changes required by
the Investment Company Act of 1940, other federal securities laws or state insurance laws. |
We will give you any required notice and receive any required
regulatory approval before we make any of these changes.
The General Account
The general account includes all assets owned by RiverSource
Life Insurance Co. of New York (“we”, “us”, “our” and “RiverSource Life of NY” refer to RiverSource Life Insurance Co. of New York), other than those in the Variable Account and our other separate
accounts. Subject to applicable state law, we have sole discretion to decide how assets of the general account will be invested. The assets held in our general account support the guarantees under your policy, including the death benefit. You should
be aware that our general account is exposed to many of the same risks normally associated with a portfolio of fixed-income securities including interest rate, option, liquidity and credit risk. You should also be aware that we issue other types of
insurance policies and financial instruments and products as well, and these obligations are satisfied from the assets in our general account. Our general account is not segregated or insulated from the claims of our creditors. The financial
statements contained in the SAI include a further discussion of the risks inherent within the investments of the general account. The Fixed Account and the Indexed Accounts are the options supported by our general account that we make available
under the policy.
Because of exemptive and exclusionary
provisions we have not registered interests in the Fixed Account or the Indexed Accounts as securities under the Securities Act of 1933 nor have any of these accounts been registered as investment companies under the Investment Company Act of 1940.
Accordingly, neither the Fixed Account nor the Indexed Accounts nor any interests therein are subject to the provisions of these Acts. With respect to the Indexed Accounts, RiverSource Life of NY represents that the Indexed Accounts offered under
the policies are in substantial compliance with the
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 33
conditions set forth in Section
989J(a)(1)-(3) of the Dodd-Frank Wall Street Reform and the Consumer Protection Act. The policy complies with all applicable state standard nonforfeiture compliance interest rate assumptions for life insurance.
These general account options have not been registered with
the Securities and Exchange Commission (“SEC”). Disclosures regarding these options, however, are subject to certain generally applicable provisions of the federal securities laws relating to the accuracy and completeness of statements
made in a prospectus.
The Fixed Account
You can allocate Net Premiums to the Fixed Account, transfer
Policy Value from the Subaccounts to the Fixed Account, or allocate the Segment maturity value of an Indexed Account to the Fixed Account. Amounts allocated to the Fixed Account become part of our general account.
Placing Policy Value in the Fixed Account does not entitle you
to share in the general account’s investment experience, nor does it expose you to the general account’s investment risk. Instead, we guarantee that the Policy Value you place in the Fixed Account will accrue interest at an effective
annual rate of at least 1%, independent of the actual investment experience of the general account. Keep in mind that this guarantee is subject to the creditworthiness and continued claims-paying ability of RiverSource Life Insurance Co. of New
York. We are not obligated to credit any interest in excess of the guaranteed rate of 1%, although we may do so at our sole discretion, or if required by state law. Interest rates credited in excess of the guaranteed rate generally will be based on
various factors related to future investment earnings. We will not credit interest in excess of 1% on any portion of Policy Value in the Fixed Account against which you have a policy loan outstanding. Also, if fees and charges under the policy are
deducted from the Fixed Account, you could lose more than the premiums you’ve paid into the Fixed Account. For further discussion see “Order of Deductions from Policy Value.”
Your statement will include the average interest rate
currently earned on Policy Value in the Fixed Account as well as the interest rate that will be credited on any new money allocated to the Fixed Account. Interest is credited daily. For additional information on interest rates, contact your sales
representative or RiverSource Life Insurance Co. of New York at the address or telephone number shown on the first page of this prospectus.
The Indexed Accounts
(Key terms used in this Indexed Accounts section are described
below.)
Placing Policy Value in the Indexed Accounts
does not entitle you to share in the general account’s investment experience, nor does it expose you to the general account’s investment risk. Instead, the Policy Value that you place in the Indexed Accounts earns interest based on a
change in the value of the S&P 500 Index. Therefore, the interest credited is independent of the actual investment experience of the general account. Keep in mind that this is subject to the creditworthiness and continued claims paying ability
of RiverSource Life Insurance Co. of New York. The indexed interest rate credited over an Indexed Interest Period will always be greater than or equal to the Segment Floor which is 0% for the 1-Year Point-to-Point Indexed Account and 1% for the
2-Year Point-to-Point Indexed Account. This means that you may never receive indexed interest on amounts invested in the 1-year Point-to-Point Indexed Account and you may receive only 1% for amounts invested in the 2-Year Point-to-Point Indexed
Account. Also, if fees and charges under the policy are deducted from the Indexed Accounts, you could lose more than the premiums you’ve paid into the Indexed Account(s). For further discussion see “Order of Deductions from Policy
Value.”
Indexed Interest Rates credited will be
based on various factors including: 1) the return of the underlying index (currently the S&P 500 Index for both the 1-year and 2-Year Point-to-Point Indexed Accounts); 2) the Segment Participation Rate (currently 100% for both the 1-year and
2-Year Point-to-Point Indexed Accounts); and 3) the cap and floor rates in effect at the start of each Segment. A Segment is the portion of an Indexed Account that is associated with a particular Segment Start Date. The Segment Participation Rate is
the percentage of the Index Growth Rate that is used to calculate indexed interest. The cap rate is the maximum interest rate over an Indexed Interest Period (1-year or 2-year period). The cap rate will never be lower than 3% for the 1-Year
Point-to-Point Indexed Account (considered a 3% “cap”), and 5% for the entire two years of the 2-Year Point-to-Point Indexed Account (considered a 5% “cap”).
When you apply for your policy you will receive an
illustration showing the current Indexed Account cap rate in effect at that time. Subsequently, your statement will include the current cap rate in effect that will apply to new Indexed Account Segments. In addition, we will provide notification on
your statement if a Segment Growth Cap rate has decreased since your last statement.
34 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
An Indexed
Account includes a corresponding Interim Account and one or more Segments. Any money allocated to an Indexed Account will first be deposited into the corresponding Interim Account. An Interim Account temporarily holds Net Premiums, loan repayments
and other amounts you request to be allocated to an Indexed Account. An Interim Account earns interest at a fixed rate not less than the Fixed Account guaranteed interest rate shown in the Policy Data section of the policy.
On the 20th day of the calendar month, if the value of the
Interim Account is $25 or greater, it will be transferred to a Segment of the corresponding Indexed Account. This will begin a new “Segment”, which is the portion of an Indexed Account created each time a transfer is made from the
Interim Account to the Indexed Account. A Segment lasts for a 12- or 24-month term and is eligible for indexed interest at the Segment Maturity Date (the last day of the 12- or 24-month term). Once money is transferred to a Segment it cannot be
transferred out of the Segment until the Segment Maturity Date, unless required to satisfy monthly deduction requirements or as required to make a loan or surrender. You may have Policy Value in multiple Segments at any given time.
Indexed interest is credited to the Segment at the end of the
Segment Term and is equal to the average Segment Value multiplied by the Indexed Interest Rate. For a given Segment, the average Segment Value is the average of the values at the end of each Segment month over the Indexed Interest Period. A Segment
month ends on the same day each month as the Segment Start Date. An Indexed Interest Period is the length of time a Segment in an Indexed Account is open. Currently, the Segment Term for an Indexed Account is equal to the Indexed Interest Period for
that account.
Examples.
The examples set forth below illustrate how indexed interest is calculated.
Assumptions |
|
Segment
Growth Cap: |
7%
|
Segment
Floor: |
0%
|
Segment
Participation Rate: |
100%
|
Average
Segment Value: |
$5,000
|
Example 1 – Up-market:
This example shows the policy was credited with $350 for the
Segment Term.
Starting
S&P 500 Index value: |
1,000
|
Ending
S&P 500 Index value: |
1,200
|
The Index Growth Rate is the ending
S&P 500 Index value divided by the starting S&P 500 Index value minus 1:
The Indexed Interest Rate is equal
to the lesser of a) the Index Growth Rate multiplied by the Segment Participation Rate or b) the Segment Growth Cap of 7%, but not less than the Segment Floor of 0%:
a)
|
20% (Index Growth Rate) x
100% (Segment Participation Rate) = 20% |
b)
|
Segment
Growth Cap of 7%, but not less than Segment Floor of 0% |
Therefore, in this example the Indexed Interest Rate is capped
at 7%.
The indexed interest credited is the average
Segment Value multiplied by the Indexed Interest Rate:
$5,000 x 7% = $350
Example 2 –
Down-market:
This example shows the policy was
credited with $0 for the Segment Term.
Starting
S&P 500 Index value: |
1,000
|
Ending
S&P 500 Index value: |
900
|
The Index Growth Rate is the ending
S&P 500 Index value divided by the starting S&P 500 Index value minus 1:
The Indexed Interest Rate is equal
to the lesser of a) the Index Growth Rate multiplied by the Segment Participation Rate or b) the Segment Growth Cap of 7%, but not less than the Segment Floor of 0%:
a)
|
-10% (Index Growth Rate) x
100% (Segment Participation Rate) = -10% |
b)
|
Segment
Growth Cap of 7%, but not less than Segment Floor of 0% |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 35
Therefore, in
this example the Indexed Interest Rate is 0%.
The
indexed interest credited is the average Segment Value multiplied by the Indexed Interest Rate:
$5,000 x 0% = $0
Example 3 – Semi
up-market:
This example shows the policy was
credited with $250 for the Segment Term.
Starting
S&P 500 Index value: |
1,000
|
Ending
S&P 500 Index value: |
1,050
|
The Index Growth Rate is the ending
S&P 500 Index value divided by the starting S&P 500 Index value minus 1:
The Indexed Interest Rate is equal
to the lesser of a) the Index Growth Rate multiplied by the Segment Participation Rate or b) the Segment Growth Cap of 7%, but not less than the Segment Floor of 0%:
a)
|
5% (Index Growth Rate) x
100% (Segment Participation Rate) = 5% |
b)
|
Segment
Growth Cap of 7%, but not less than floor of 0% |
Therefore, in this example the Indexed Interest Rate is
5%.
The indexed interest credited is the average Segment
Value multiplied by the Indexed Interest Rate:
$5,000 x 5% = $250
Segment Maturity Value
The Segment Growth Cap, Segment Floor and Segment
Participation Rate are declared at the beginning of each Segment. At Segment maturity, the amount reallocated to the Indexed Account(s) along with any money in the Interim Account is combined to start a new Segment, the Segment Growth Cap is set and
the process of crediting interest for that new Segment starts over again. The Segment Growth Cap is the limit on the index growth used in calculating the indexed interest. The Segment Floor provides protection when the performance of the index is
less than the Segment Floor. The Segment Participation Rate reflects how much of the Index Growth Rate will be utilized in calculating the indexed interest. The guaranteed minimum Segment Growth Cap, Segment Floor and Segment Participation Rate is
shown in the policy under Policy Data. Subsequent Segment Growth Caps, Segment Floors and Segment Participation Rates that we set may differ, but will never be less than the guaranteed minimum rates. Please contact your sales representative to
determine the current Segment Growth Cap, Segment Floor and Segment Participation Rate for the Indexed Accounts available under the policy. Each indexed account has a different risk and return profile and a different range of potential outcomes. Any
allocation you select should take into account your financial objectives, time horizon and risk tolerance. You should discuss the indexed account parameters with your registered representative to ensure you understand how they may affect the indexed
interest credited for each indexed account.
The indexed
interest credited plus the Segment value at the end of the Segment result in the Segment maturity value. The Segment maturity value is reallocated to the Fixed Account, Subaccounts, and/or Indexed Accounts according to the Segment maturity
reallocation percentages you have selected. The amount reallocated to the Indexed Accounts along with any money in the Interim Account is then combined to start a new Segment. Each available Indexed Account has its own Segment reallocation
percentages that can be selected when you apply for the policy. You may change the Segment reallocation percentages at any time by written request or any other requests acceptable to us. Any change to the Segment reallocation percentages
will be effective for all Segments of an Indexed Account maturing after the receipt of the request. In absence of a selection of the Segment reallocation percentages, Segment maturity value will be allocated to the same Indexed Account.
On the youngest Insured’s Attained Insurance Age 119
anniversary, Segment reallocation percentages will be set to allocate any Segment maturity value to the Fixed Account and may not be changed.
The Indexed Account options available under the policy are
shown in the Policy Data section of the policy. We reserve the right to add, remove or change one or more of the Indexed Account options. Also, we may substitute a comparable index if an index is discontinued, substantially changed or, at our sole
discretion, we determine that an index should no longer be used. Any such substitution is subject to approval by the appropriate state insurance regulatory authorities. If an index is discontinued or substantially changed, we may mature Segments
early. If we mature a Segment early, we will notify you. If we substitute a comparable index, the new index will only apply to new Segments. We will notify you, and any assignee of record, before a substitute index is used. If no such comparable
index is approved, or it would not be prudent to substitute such an index, we reserve the right to stop offering an Indexed Account. In this case, the value of the discontinued Indexed Account will be transferred to the Fixed Account.
36 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
It is not
possible to invest directly in an index. An Indexed Account is indirectly impacted by the market since it is not directly invested in any stock or equity investments. Any indexed interest credited will be affected by changes in the corresponding
index(es).
Key Terms for the Indexed Accounts
Section
1-Year Point-to-Point Indexed Account: An Indexed Account option under the policy that credits interest based on the percentage change in value of one or more designated index(es) between two points in time (beginning with Segment Start Date and ending
with Segment Maturity Date) over a one-year period (subject to a Segment Growth Cap, Segment Floor and Segment Participation Rate).
2-Year Point-to-Point Indexed Account: An Indexed Account option under the policy that credits interest based on the percentage change in value of one or more designated index(es) between two points in time (beginning with Segment Start Date and ending
with Segment Maturity Date) over a two-year period (subject to a Segment Growth Cap, Segment Floor and Segment Participation Rate).
Indexed Account: The portion
of the Policy Value that has the potential to earn interest based on a change in the value of one or more designated indexes.
Indexed Account Value: The sum
of the values of the Segments of an Indexed Account plus the value of the Indexed Account’s corresponding Interim Account.
Index Growth Rate: The Index
Growth Rate is calculated as (B divided by A) minus 1, where:
A = the final value of the index as of the day before the
beginning of the Indexed Interest Period; and
B = the
final value of the index as of the day before the end of the Indexed Interest Period.
The final value of an index used in calculating the Index
Growth Rate is the value determined by that index's provider as the index's final value on a business day. A business day is a day on which the New York Stock Exchange is open for business. If we need to determine the final value on any day that is
not a business day, we will use the final value for the next business day following that day. If no final value is determined for any index as of a business day, we will use the final value for the most recent preceding business day for which a
final value was determined for that index.
The Index
Growth Rate does not include gains in the index that come from dividends.
Indexed Interest Period: The
length of time a Segment in an Indexed Account is open. Currently, the Segment Term for an Indexed Account is equal to the Indexed Interest Period for that account.
Indexed Interest Rate: The
Indexed Interest Rate reflects any growth in the value of the index, subject to the Segment Growth Cap and Segment Floor. The Indexed Interest Rate is equal to the lesser of (a x b) – (d) or (c – d), but will never be less than (e),
where:
(a) is the Index Growth Rate;
(b) is the Segment Participation Rate;
(c) is the Segment Growth Cap;
(d) is the Cumulative Guaranteed Indexed Interest Rate;
and
(e) is the Segment Floor.
Interim Account: An Interim
Account corresponds to an Indexed Account. The Interim Account temporarily holds Net Premiums, loan repayments and other amounts you request to be allocated or transferred to its corresponding Indexed Account.
Segment: A Segment is the
portion of an Indexed Account that is associated with a particular Segment Start Date.
Segment Floor: The minimum
total Interest Rate for a Segment over the Indexed Interest Period, including both the Segment guaranteed annual interest rate and the Indexed Interest Rate.
Segment Growth Cap: The
maximum total interest rate for a Segment over the Indexed Interest Period, including both the Segment guaranteed annual interest rate and the Indexed Interest Rate.
Segment Maturity Date: The
last day of a Segment Term.
Segment Participation
Rate: The percentage of the Index Growth Rate that is used to calculate Participation Rate.
Segment Start Date: The date a
transfer of the value in the Interim Account or reallocation of Segment value at maturity creates a new Segment.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 37
Segment Term: The length of time a Segment is open. Each Segment begins on its Segment Start Date and ends on its Segment Maturity Date, which is determined by the Segment Term. The Segment Term for each Indexed Account is shown in
the policy under Policy Data. Currently, the Segment Term for an Indexed Account is equal to the Indexed Interest Period for that account.
Sweep Dates: The dates on
which amounts in the Interim Account are transferred into a new Segment of the corresponding Indexed Account. The initial Sweep Dates as of the issue date of the policy are shown under Policy Data. We reserve the right to change the day and
frequency of the Sweep Dates; however, Sweep Dates will not occur less frequently than once per calendar quarter.
Purchasing Your Policy
Application
Your sales representative will help you complete an
application and send it to our Service Center. We are required by law to obtain personal information from you which we will use to verify your identity. If you do not provide this information, we reserve the right to refuse to issue your policy or
take other steps we deem reasonable. When you apply, you:
•
|
select a Specified Amount of
insurance; |
•
|
select a death benefit
option; |
•
|
designate a Beneficiary; and
|
•
|
state how
premiums are to be allocated among the Fixed Account, the Indexed Accounts and the Subaccounts. |
Insurability: Before issuing
your policy, we require satisfactory evidence of the insurability of the people whose life you propose to insure (yourself or someone else). Our underwriting department will review your application and any medical information or other data required
to determine whether the proposed Insureds are insurable under our underwriting rules. We may decline your application if we determine the proposed Insureds are not insurable and we will return any premium you have paid.
Age limit: We generally will
not issue a policy where either of the proposed Insureds are over the Insurance Age of 85 for death benefit option 1 or 2, or over the Insurance Age 80 for death benefit option 3. We may, however, do so at our sole discretion.
Risk Classifications: The Risk
Classification of each Insured is based on the Insured’s health, occupation or other relevant underwriting standards. This classification will affect the monthly deduction and may affect the cost of certain optional insurance benefits. (See
“Loads, Fees and Charges.”)
When
insurance coverage is in effect: Insurance coverage is in effect when we issue the policy, you have paid any premium necessary to keep the policy in force, the policy has been delivered to you and you have
accepted the policy. Conditional insurance coverage will be in effect prior to delivery of the policy only if certain conditions have been met, as stated in the application form.
Other conditions: In addition
to proving insurability of each Insured, you and the Insureds must meet certain conditions stated in the application form before coverage will become effective and your policy will be delivered to you. The only way the policy may be modified is by a
written agreement signed by our President, or one of our Vice Presidents, Secretaries or Assistant Secretaries.
Incontestability: We will have
two years from the Policy Date of your policy or from reinstatement of your policy (see “Keeping the Policy in Force — Reinstatement”) to contest the truth of statements or representations in your application. After the policy has
been in force during the last surviving Insured’s lifetime for two years from the Policy Date, we cannot contest the truth of statements or representations made in your application, except for the non-payment of premium and fraud in the
procurement of this policy to the extent permitted by applicable state law.
Choice of Tax Test
When you apply for your policy, you need to select one of two
life insurance qualification tests which will be used to determine whether your policy continues to qualify as life insurance, as outlined under Section 7702 of the Internal Revenue Code of 1986, as amended (Code).
The two tests are:
(1) the guideline premium test (GPT),
or
(2) the cash value accumulation
test (CVAT).
The test you choose cannot be changed after
your policy is issued. If you do not choose a life insurance qualification test when you apply for your policy, the GPT will be applied to your policy. For policies with large amounts of planned premium, we may limit the choice to the GPT.
38 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
As mentioned in
the Proceeds Payable Upon Death section, regardless of which death benefit option is in effect on the policy, there is always a minimum death benefit amount equal to a percentage of the Policy Value. These percentages, and thus the minimum death
benefit amount, are defined under Section 7702 of the Code and differ based on the test selected. In general, the percentages under the CVAT are higher than the percentages under the GPT. A policy’s specific percentages are shown in the Death
Benefit Percentage table under Policy Data.
In addition
to defining a minimum death benefit amount, the Code also defines a limit to the amount of premium that can be paid under the GPT.
Considerations when choosing the life insurance qualification
test for your policy:
Due to no premium limitations in
the CVAT under the Code, the CVAT typically allows more flexibility in the amount and timing of premium that can be paid. Please note, under both tests, any premium paid which increases the Net Amount at Risk may be
subject to underwriting and require an increase in the Specified Amount prior to us accepting the premium.
For the same premium, the GPT may result in a higher death
benefit in early years due to the premium limitations for a given Specified Amount, while the CVAT may result in a higher death benefit long-term due to higher death benefit percentages. Monthly cost of insurance charges that are based on the Net
Amount at Risk may be greater on policies using the test that has the higher death benefit at any given time.
Potential Distributions of Policy Value under the CVAT
Under the CVAT, if the death benefit less the Policy Value,
ever exceeds three times the distribution threshold as defined below, we reserve the right to make a distribution from Policy Value. The distribution would be the amount needed to make the death benefit, less the Policy Value, equal to three times
the distribution threshold.
The distribution threshold
is equal to:
(a) + (b)
Where:
(a) is the initial Specified Amount;
and
(b) is the amount of any increase
in Specified Amount other than that resulting solely from a change in the death benefit option.
Right to Examine Your Policy (“Free Look”)
You may return your policy for any reason and receive a full
refund of all premiums paid.
If you exercise your right
to examine your policy under the “Free Look” provision of the policy, you will receive a full refund of all premiums paid. You may mail or deliver the policy to our Service Center or to your sales representative with a written request
for cancellation by the 10th day (or 60th day if the policy is intended to replace an existing policy) after you receive it. On the date your request is postmarked or received, the policy will immediately be considered void from the start.
Under our current administrative practice, your request to
cancel the policy under the “Free Look” provision will be honored if received at our Service Center within 30 days from the latest of the following dates:
•
|
The date we mail the policy
from our Service Center. |
•
|
The Policy Date (only if the
policy is issued in force). |
•
|
The date
your sales representative delivers the policy to you as evidenced by our policy delivery receipt, which you must sign and date. |
We reserve the right to change or discontinue this
administrative practice at any time.
Premiums
Payment of premiums: In
applying for your policy you decide how much you intend to pay and how often you will make payments. During the first several policy years until the Policy Value is sufficient to cover the Surrender Charge, you will need to pay the required
premium to keep the NLG in effect in order to keep the policy in force. The Scheduled Premium serves only as an indication of your intent as to the frequency and amount of future premium payments. You may skip
Scheduled Premium payments at any time if your Cash Surrender Value is sufficient to pay the monthly deduction or if you have paid sufficient premiums to keep the NLG in effect.
To determine the amount of Scheduled Premium, you may consider
a number of factors including, but not limited to:
•
|
the Specified Amount;
|
•
|
the Insureds’ genders;
|
•
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the
Insureds’ issue ages; |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 39
•
|
the Insureds’ Risk
Classifications; |
•
|
premium frequency; and
|
•
|
the death
benefit option. |
You may schedule
payments annually, semiannually or quarterly. (We must approve payment at any other interval.) We show this premium schedule in your policy. You may also pay premiums by bank authorization on a monthly or quarterly basis under our current company
practice. We reserve the right to change this practice.
The Scheduled Premium serves only as an indication of your
intent as to the frequency and amount of future premium payments. You may skip Scheduled Premium payments at any time if your Cash Surrender Value is sufficient to pay the monthly deduction or if you have paid sufficient premiums to keep the NLG in
effect.
You may also change the amount and frequency of
Scheduled Premium payments by written request. We reserve the right to limit the amount of such changes. Any change in the premium amount is subject to applicable tax laws and regulations.
Although you have flexibility in paying premiums, the amount
and frequency of your payments will affect the Policy Value, Cash Surrender Value and length of time your policy will remain in force, as well as affect whether the NLG remains in effect.
Premium limitations: You may
make unscheduled premium payments at any time and in any amount of at least $25. We reserve the right to limit the number and amount of unscheduled premium payments. No premium payments, scheduled or unscheduled, are allowed on or after the youngest
Insured’s Attained Insurance Age 120.
Allocation of premiums: We
will hold any premiums received prior to the Policy Date. As of the Policy Date, we will allocate the Net Premiums to the accounts you have selected in your application. At that time, we will begin to assess the monthly deduction and other
charges.
On the Insured’s Attained
Insurance Age 119 anniversary, the premium allocation percentages will be set to allocate all premium and loan repayments to the Fixed Account, and may not be changed.
Additional premiums: We credit
additional premiums you make to your accounts on the Valuation Date we receive them. If we receive an additional premium at our Service Center before the Close of Business, we will credit any portion of that premium allocated to the Subaccounts
using the Accumulation Unit value we calculate on the Valuation Date we received the premium. If we receive an additional premium at our Service Center at or after the Close of Business, we will credit any portion of that premium allocated to the
Subaccounts using the Accumulation Unit value we calculate on the next Valuation Date after we received the premium.
Policy Value
The value of your policy is the sum of values in the Fixed
Account, Indexed Account(s) and each Subaccount of the Variable Account. We value your accounts as follows:
Fixed Account
We value the amounts you allocate to the Fixed Account
directly in dollars. The Fixed Account Value equals:
•
|
the sum of your Net
Premiums, transfer amounts (including loan transfers), Segment maturity reallocations, and any applicable policy value credit allocated to the Fixed Account; plus |
•
|
interest credited; minus
|
•
|
the sum of amounts
surrendered (including any applicable Surrender Charges) and amounts transferred out of the Fixed Account (including loan transfers); minus |
•
|
any
portion of the monthly deduction for the coming month that is allocated to the Fixed Account. |
Indexed Accounts
Amounts allocated to an Indexed Account will be held either in
an Interim Account or the Indexed Account’s Segments. We value the amounts you allocate to an Indexed Account directly in dollars. An Indexed Account’s Value equals:
•
|
the sum of your Net
Premiums, Segment maturity reallocations, and any applicable policy value credit allocated to the Indexed Account; plus |
•
|
indexed interest credited;
minus |
•
|
the sum of amounts
surrendered (including any applicable Surrender Charges) and amounts transferred out (due to loans taken and interest charged on Indebtedness), Segment maturity reallocations allocated to the Fixed Account, any Subaccounts, or another Indexed
Account; minus |
•
|
any
portion of the monthly deduction for the coming month that is allocated to the Indexed Account. |
40 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Subaccounts
We convert amounts you allocate to the Subaccounts into
Accumulation Units. Each time you allocate a Net Premium, transfer amounts into one of the Subaccounts from the Fixed Account or another Subaccount, or transfer amounts from the Indexed Accounts at Segment maturity, we credit a certain number of
Accumulation Units to your policy for that Subaccount. Conversely, each time you take a partial surrender, transfer amounts out of a Subaccount, or we assess a charge, we subtract a certain number of Accumulation Units from your Policy Value.
Accumulation Units are the true measure of investment value in
each Subaccount. 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 dividend or capital gain distributions, to obtain a current adjusted net asset value per share; then |
•
|
dividing
that sum by the previous adjusted net asset value per share. |
Factors that affect Subaccount Accumulation Units: Accumulation Units may change in two ways — in number and in value. Here are the factors that influence those changes:
The number of Accumulation Units you own
may fluctuate due to:
•
|
additional Net Premiums
allocated to the Subaccounts; |
•
|
any applicable policy value
credit allocated to the Subaccounts; |
•
|
transfers into or out of the
Subaccounts; |
•
|
amounts transferred from
Indexed Accounts at Segment maturity; |
•
|
partial surrenders and
partial surrender fees; |
•
|
Surrender Charges; and
|
•
|
monthly
deductions. |
Accumulation Unit values will fluctuate due
to:
•
|
changes in underlying Fund
net asset value; |
•
|
Fund dividends distributed
to the Subaccounts; |
•
|
Fund capital gains or
losses; and |
•
|
Fund
operating expenses. |
Order of
Deductions from Policy Value
Any deductions from Policy
Value will be taken from the Fixed Account, minus any Indebtedness, and the Subaccounts according to the allocation percentages in effect until exhausted.
When the Fixed Account, minus any Indebtedness, and the
Subaccounts have been exhausted, any deductions from Policy Value will be taken in order from the following:
•
|
the Interim Accounts,
proportionally, based on the Interim Account values until exhausted; then |
•
|
the Segments of the Indexed
Accounts starting with the most recently opened Segment(s); then |
•
|
the next
most recently opened Segment(s), and will continue in this manner until the amount required to satisfy the deduction has been met. |
For multiple Indexed Account Segments with the same start
date, any deductions will be taken proportionally out of those Segments based on the values in those Segments.
Such deductions include monthly deductions, partial
surrenders, partial surrender fees, loans, loan interest and any other adjustments to Policy Value as a result of exercising a policy provision or rider.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 41
Keeping the
Policy in Force
No Lapse Guarantee
A feature of the policy guaranteeing the policy will remain in
force even if the Cash Surrender Value is insufficient to pay the monthly deduction. Each policy has the following NLG option:
No-Lapse Guarantee NLG: This option guarantees the policy will not Lapse before the youngest Insured’s Attained Insurance Age 75 (or 10 years, if later).
The NLG will remain in effect as long
as:
•
|
the sum of premiums paid;
minus |
•
|
partial surrenders; minus
|
•
|
outstanding Indebtedness;
equals or exceeds |
•
|
the NLG
Premiums due since the Policy Date. |
The NLG Premium is shown in the
policy.
If, on a Monthly Date, you have not paid enough
premiums to keep the NLG in effect, the NLG will terminate. Your policy will also enter the grace period if the Cash Surrender Value is less than the amount needed to pay the monthly deduction and the NLG is not in effect. The NLG may be reinstated
within two years.
Grace Period
If on a Monthly Date the Cash Surrender Value of your policy
is less than the amount needed to pay the next monthly deduction and the NLG is not in effect, the policy will enter the grace period and you will have 61 days to pay the required premium amount. If you do not pay the required premium, the policy
will Lapse.
Approximately 15 days after the grace period
begins, we will mail a notice to your last known address, requesting a payment sufficient to cover any past due premiums, any premiums falling due during the grace period, and the next scheduled monthly deduction. If we receive this premium
before the end of the 61-day grace period, we will use the payment to cover all monthly deductions and any other charges then due. We will add any remaining balance to the Policy Value and allocate it in the same manner as other premium payments.
If the youngest Insured dies during the grace period, we will deduct any overdue monthly deductions from the death benefit.
Reinstatement
Your policy may be reinstated within three years after it
Lapses, unless you surrendered it for cash. To reinstate, we will require:
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a written request; |
•
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evidence satisfactory to us
that both Insureds (or the last surviving Insured) remain insurable and due proof that the first death occurred before the date of Lapse; |
•
|
payment of the premium
we specify; and |
•
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payment
or reinstatement of any Indebtedness. |
The effective date of a reinstated policy will be the Monthly
Date on or next following the day we accept your application for reinstatement. The suicide period (see “Proceeds Payable Upon Death”) will apply from the effective date of reinstatement. Surrender Charges will also be reinstated.
We will have two years from the effective date of
reinstatement to contest the truth of statements or representations in the reinstatement application.
Proceeds Payable Upon Death
We will pay a benefit to the Beneficiary of the policy when
the last surviving Insured dies. The amount payable is the death benefit amount minus any Indebtedness as of the Death Benefit Valuation Date.
Option 1 (level amount): Under
the Option 1 death benefit, if death is prior to the youngest Insured’s Attained Insurance Age 120, the death benefit amount is the greater of the following as determined on the Death Benefit Valuation Date:
•
|
the Specified Amount; or
|
•
|
a
percentage of the Policy Value. The percentage is designed to ensure that the policy meets the provisions of federal tax law, which require a minimum death benefit in relation to Policy Value for your policy to qualify as life insurance.
|
42 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Option 2 (variable
amount): Under the Option 2 death benefit, if death is prior to the youngest Insured’s
Attained Insurance Age 120, the death benefit amount is the greater of the following as determined on the Death
Benefit Valuation Date:
•
|
the Policy Value plus the
Specified Amount; or |
•
|
a
percentage of Policy Value. The percentage is designed to ensure that the policy meets the provisions of federal tax law, which require a minimum death benefit in relation to Policy Value for your policy to qualify as life insurance.
|
Option 3 (return of premium, subject
to a limit): Under the Option 3 death benefit, if death is prior to or on the youngest Insured’s Attained Insurance Age 120, the death benefit amount is the greater of the following as determined on the Death
Benefit Valuation Date:
•
|
the Specified Amount plus
premiums paid, less partial surrenders and any partial surrender fees; or |
•
|
the Death
Benefit Option 3 Limit shown under Policy Data; or |
2.
|
a percentage of the Policy
Value. The percentage is designed to ensure the policy meets the provisions of federal tax law, which require a minimum death benefit in relation to the Policy Value for your policy to qualify as life insurance. |
Example
|
Option
1 |
Option
2 |
Option
3 |
Specified
Amount |
$100,000
|
$100,000
|
$100,000
|
Policy
Value |
$
5,000 |
$
5,000 |
$
5,000 |
Premiums
paid |
$
4,000 |
$
4,000 |
$
4,000 |
Death
benefit |
$100,000
|
$105,000
|
$104,000
|
Policy
Value increases to |
$
8,000 |
$
8,000 |
$
8,000 |
Death
benefit |
$100,000
|
$108,000
|
$104,000
|
Policy
Value decreases to |
$
3,000 |
$
3,000 |
$
3,000 |
Death
benefit |
$100,000
|
$103,000
|
$104,000
|
If you want to have premium
payments reflected in the form of an increasing death benefit, subject to a limit, you should consider Option 3. If you want your death benefit to include the policy Specified Amount and Policy Value, you should consider Option 2. If you are
satisfied with the Specified Amount of insurance protection and prefer to have premium payments and favorable investment performance reflected to the maximum extent in the Policy Value, you should consider Option 1. Under Option 1, the cost of
insurance is lower because our Net Amount at Risk is generally lower; for this reason, the monthly deduction is less and a larger portion of your premiums and investment returns is retained in the Policy Value.
Under all death benefit options, if death is on or after the
youngest Insured’s
Attained Insurance Age 120 anniversary, the death benefit amount will be the greater of:
•
|
the death benefit on the
youngest Insured’s Attained Insurance Age 120 anniversary, minus any partial surrenders and partial surrender fees occurring after the youngest Insured’s Attained Insurance Age 120 anniversary; or |
•
|
the
Policy Value on the date of death of the last surviving Insured. |
Change in Death Benefit Option
Prior to the youngest Insured’s
Attained Insurance
Age 120 anniversary, you may make a written request to change the death benefit option once per policy year. A change in the death benefit option also will change the Specified Amount. You do not need to provide additional evidence of
insurability.
If you change from Option 1 to Option 2: The Specified Amount will decrease by an amount equal to the Policy Value on the effective date of the change. You cannot change from Option 1 to Option 2 if the resulting Specified Amount would fall below the minimum
amount shown in the policy.
If you change from
Option 2 to Option 1: The Specified Amount will increase by an amount equal to the Policy Value on the effective date of the change.
If you change from Option 3 to Option 1: The Specified Amount will be the Option 3 death benefit on the effective date of the change.
You may not change from Option 1 or Option 2 to Option 3, or
from Option 3 to Option 2.
An increase or decrease in
Specified Amount resulting from a change in the death benefit option will affect the following:
•
|
Monthly deduction because
the cost of insurance charges depends upon the Specified Amount. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 43
•
|
Charges for certain optional
insurance benefits. |
The Surrender
Charge will not be affected.
We reserve the right to
decline to make any death benefit option change that we determine would cause the policy to fail to qualify as life insurance under applicable tax laws.
Changes in Specified Amount
Subject to certain limitations, you may make a written request
to increase or decrease the Specified Amount.
Increases: If you increase the Specified Amount, we may require additional evidence of insurability that is satisfactory to us.
The effective date of the increase will be the monthly
anniversary on or next following our approval of the increase. The increase may not be less than $10,000 and we will not permit an increase after the youngest Insured’s Attained Insurance Age 85. We will have two years from the effective date
of an increase in Specified Amount to contest the truth of statements or representations in the application for the increase in Specified Amount. If the last surviving Insured commits suicide within two years from the effective date of any increase
in Specified Amount which requires proof of insurability, the amount payable by us with respect to the increased coverage will be limited to the monthly deductions for such additional Specified Amount.
An increase in the Specified Amount will have the following
effect on policy costs:
•
|
Your monthly deduction will
increase because the cost of insurance charge depends upon the Specified Amount. |
•
|
Charges for certain optional
insurance benefits may increase. |
•
|
The NLG premiums will
increase. |
•
|
The administrative charge
will increase. |
•
|
The
Surrender Charge will increase. A new schedule of Surrender Charges will apply to the amount of any increase in the Specified Amount. |
At the time of the increase in Specified Amount, the Cash
Surrender Value of your policy must be sufficient to pay the monthly deduction on the next Monthly Date. The increased Surrender Charge will reduce the Cash Surrender Value. If the remaining Cash Surrender Value is not sufficient to cover the
monthly deduction, we will require you to pay additional premiums within the 61-day grace period. If you do not, the policy will Lapse unless the NLG is in effect.
Decreases: After the first
policy year, you may decrease the Specified Amount subject to all the following limitations:
•
|
Only one decrease per policy
year is allowed. |
•
|
We reserve the right to
limit any decrease to the extent necessary to qualify the policy as life insurance under the Code. |
•
|
After the
decrease, the Specified Amount may not be less than the minimum amount shown in the policy. The minimum amounts shown in the policy are: |
•
|
In policy years 2-5, the
Specified Amount remaining after the decrease may not be less than 75% of the initial Specified Amount. |
•
|
In policy years 6 -10, the
Specified Amount remaining after the decrease may not be less than 50% of the initial Specified Amount. |
•
|
In policy years 11-15, the
Specified Amount remaining after the decrease may not be less than 25% of the initial Specified Amount. |
•
|
In policy
years 16+, the Specified Amount remaining after the decrease must be at least $1,000. |
The effective date of any decrease in Specified Amount is the
Monthly Date on or next following the date we receive your request.
No Surrender Charge is imposed when you request a decrease in
the Specified Amount.
Each increase in Specified Amount
is treated as a new policy for purposes of applying the limitations on decreases. Thus, the first policy year for an increase is measured from the effective date of the increase.
Example
This example assumes an initial Specified Amount of $100,000.
In policy year 6, you increase the initial Specified Amount by $100,000. The current Specified Amount after this increase is $200,000. In policy year 10 (and 4 policy years after the effective date of the increase), you request a $125,000 decrease
in the current Specified Amount. The
44 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
maximum decrease permitted
under these assumptions is limited to $75,000, and the Specified Amount after this decrease is $125,000, computed as follows:
Maximum
reduction in initial Specified Amount in policy year 10: |
$100,000
X .50 = |
$
50,000 |
Maximum
reduction in increase in Specified Amount during the fourth policy year of increase: |
$100,000
X .25 = |
+25,000
|
Maximum
permitted reduction in current Specified Amount: |
|
$
75,000 |
Current
Specified Amount before reduction: |
|
$
200,000 |
Minus
maximum permitted reduction in current Specified Amount: |
|
–75,000
|
Specified
Amount after reduction |
|
$
125,000 |
A decrease in Specified Amount will affect your costs as
follows:
•
|
Your monthly deduction will
decrease because the cost of insurance charge depends upon the Specified Amount. |
•
|
Charges for certain optional
insurance benefits may decrease. |
•
|
The NLG premiums will
decrease. |
•
|
The administrative charge
will not change. |
•
|
The
Surrender Charge will not change. |
We
will deduct decreases in the Specified Amount from the current Specified Amount in this order:
•
|
First from the initial
Specified Amount when the policy was issued, and |
•
|
Then from
the increases successively following the initial Specified Amount. |
This procedure may affect the cost of insurance if we have
applied different Risk Classifications to the current Specified Amount.
Misstatement of Age or Sex
If either Insured’s age or sex has been misstated, the
Proceeds payable upon death will be:
•
|
the Policy Value on the date
of death; plus |
•
|
the amount of insurance that
would have been purchased by the cost of insurance deducted for the policy month during which death occurred, if that cost had been calculated using rates for the correct age and sex; minus |
•
|
the
amount of any outstanding Indebtedness on the date of death. |
Suicide
In the event of suicide by the last surviving Insured,
whether sane or insane within two years from the Policy Date, the only amount payable by us will be the premiums paid, minus any Indebtedness and partial surrenders. If the last surviving Insured commits suicide, whether sane or insane within
two years from the effective date of any increase in Specified Amount or any rider attached to the policy, then the amount payable will be limited to the monthly deductions for such additional Specified Amount or rider.
Beneficiary
Initially, the Beneficiary will be the person you designate in
your application for the policy. You may change the Beneficiary by giving us written notice, subject to requirements and restrictions stated in the policy. If you do not designate a Beneficiary, or if the designated Beneficiary dies before the last
surviving Insured, the Beneficiary will be you, if living. If you are not living, the Beneficiary will be your estate.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 45
Other Benefits
Available Under the Contract
In addition to the standard
death benefit(s) associated with your contract, other standard and/or optional benefits may also be available to you. The following table summarize information about those benefits. Information about the fees associated with each benefit included in
the table may be found in the Fee Table.
Name
|
Purpose
|
Is
the Benefit Standard or Optional |
Brief
Description of Restrictions / Limitations |
Four-Year
Term Insurance Rider (FYT) |
FYT
provides a Specified Amount of insurance. The FYT death benefit is paid if both Insureds die during the first four policy years. |
Optional
|
•
FYT is only available at issue. • FYT automatically terminates on the four-year Policy Anniversary of the policy. • FYT is not available if either Insured is uninsurable. |
Policy
Split Option Rider (PSO) |
PSO
permits a policy to be split into two individual permanent plans of life insurance then offered by us for exchange, one on the life of each Insured. |
Optional
|
•
PSO is only available at issue. • PSO is not available for Insureds in certain Risk Classifications. • Both Insureds must be between Insurance Ages 20 - 75. • If the policy and this rider are still in
force at the oldest Insureds’ 80th insurance anniversary, this rider will automatically terminate. |
Overloan
Protection Benefit (OPB) |
Protects
the policy from Lapsing as a result of the loan balance exceeding the Policy Value when certain conditions are met. |
Standard
|
•
OPB can only be exercised if the death benefit option 1 is in effect. • The policy must be in force for at least 15 years before the OPB can be exercised. • The policy may not be in the grace period to exercise the
OPB. |
Accounting
Value Increase Rider (AVIR) |
If
the policy is fully surrendered while the policy is in force and prior to the expiration date of the rider, we will waive a portion of the Surrender Charge. |
Optional
|
•
This rider is available at time of application only with small business owners. • The waiver does not apply to any Surrender Charge due to increases in Specified Amount, or to partial surrenders. • Surrender Charges
will not be waived if the policy is being surrendered in exchange for a new insurance policy or contract. |
Paid
Up Insurance Option |
You
may request that we use the Cash Surrender Value of the policy to purchase an amount of paid-up insurance prior to the youngest Insured’s Attained Insurance Age 120. |
Optional
|
•
When the Paid-Up Insurance option is elected, you will forfeit all rights to make future premium payments and all riders will terminate. • The paid-up insurance policy’s death benefit amount, minus its Cash Surrender Value,
cannot be greater than your current policy’s death benefit, minus its Policy Value (both as of the date of the paid-up insurance policy’s purchase). |
Additional Information About Optional Benefits
When you purchase your policy, you may add any available
optional benefits to your policy in the form of riders for an additional charge (unless otherwise noted).
46 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Four-Year Term
Insurance Rider (FYT): The four-year term insurance rider provides a pre-specified death benefit to the Beneficiary if the last surviving Insured dies during the first four years of the policy. The rider
automatically terminates on the policy’s four-year Policy Anniversary. The purpose of this rider is to cover the additional estate taxes that could become due if the policy is transferred to an irrevocable trust or to a third party within
three years of purchase. The rider is not available if either Insured is uninsurable. The minimum rider death benefit available is $50,000. The maximum rider death benefit available is 1.22 times the sum of the base policy Specified Amount. The
rider Specified Amount can be decreased (not below $50,000) once per year or dropped from the policy after issue, but the rider amount cannot be increased or a rider added once the policy has been issued. If the base policy Specified Amount is
decreased at any time, or a change in death benefit option from 1 to 2 is made where the base policy Specified Amount is reduced, the rider Specified Amount will also be decreased so that it does not exceed 1.22 times the base policy Specified
Amount. If a change in death benefit option 2 to 1 is made, and the base policy Specified Amount is increased, the rider Specified Amount will not be increased. If the PSO is exercised, the FYT will terminate. The FYT cannot be split or carried over
to the new policies.
The FYT will terminate on
the earliest of the following:
1.
|
The month and date on or
next following receipt of your written request for coverage to end; or |
2.
|
The four-year Policy
Anniversary, as shown under Policy Data; or |
3.
|
The date
the policy terminates. |
Policy Split
Option Rider (PSO): The policy split option provides for the split of the policy into two individual plans of insurance, one on the life of each Insured, upon the occurrence of any of the following
events:
1.
|
divorce of the Insureds; or
|
2.
|
the federal tax law is
changed resulting in removal of the unlimited marital deduction or reduces by at least 50% the level of the estate taxes payable on death; or |
3.
|
there is a dissolution of a
business partnership between the Insureds; or |
4.
|
there is
a dissolution of a business conducted or owned by the Insureds. |
Both Insureds must be living at the time of the policy split.
The policy split must be exercised no sooner than six months after a divorce and no later than one year after the divorce; within one year after an estate tax law change; or within six months of the dissolution of the business or partnership.
If the split is exercised, the initial Specified Amount on
each new policy will be 50% of the Specified Amount of the split policy, minus 50% of any Indebtedness. The new policies will be individual permanent life insurance products we are issuing at the time of the split. The Policy Value minus any
Indebtedness will be split between the new policies. The new policies’ rates will be based on each Insured’s Attained Insurance Age and the Insureds’ Risk Classifications in the old policies.
The PSO automatically terminates at the oldest Insured’s
Attained Insurance Age 80. The PSO may terminate earlier at the request of the policy owner, death of one of the Insureds, or when the policy is split.
Accounting Value Increase Rider (AVIR): If the policy is fully surrendered while the rider is in force and prior to the expiration date of the rider, we will waive a portion of the Surrender Charge.
Please note the following about AVIR:
•
|
The amount waived is a
percentage of the Surrender Charge that would apply to the initial Specified Amount. |
•
|
The waiver does not apply to
any Surrender Charge due to increases in Specified Amount, or to partial surrenders. |
•
|
Surrender
Charges will not be waived if the policy is being surrendered in exchange for a new insurance policy or contract. |
Paid Up Insurance Option: You
may request that we use the Cash Surrender Value of the policy to purchase an amount of paid-up insurance prior to the youngest Insured’s Attained Insurance Age 120. You may make your request in writing during the 30 days before any Policy
Anniversary. The paid-up insurance policy will take effect as of the Policy Anniversary and will mature on the original policy’s youngest Insured’s Attained Insurance Age 120. You will forfeit all rights to make future premium payments
and all riders will terminate.
The amount and
Cash Surrender Value of the paid-up insurance policy will be based on the cost of insurance rates guaranteed in the policy and on the Fixed Account guaranteed interest rate. The paid-up insurance policy’s death benefit amount, minus its Cash
Surrender Value, cannot be greater than your current policy’s death benefit, minus its Policy Value (both as of the date of the paid-up insurance policy’s purchase). The amount of paid-up insurance will remain level and will not be less
than required by law.
Any Cash Surrender Value that is
not used to purchase the paid-up insurance amount will be paid to you. At any time before the last surviving Insured’s death, you may surrender the paid-up insurance for its Cash Surrender Value.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 47
Additional
Information About Standard Benefits (Other than Standard Death Benefits)
In addition to the standard death benefits, other standard
benefits are included with your policy at no additional cost, as described further below.
Automated Transfers, Automated Dollar-Cost Averaging, Asset
Rebalancing. For information about these automatic transfer programs, please see the corresponding headings under “Transfers among the Fixed Accounts, Indexed Accounts and Subaccounts.”
Policy Value Credit. We may
periodically apply a policy value credit to your Policy Value. The requirements that must be met to receive any policy value credit are shown under Policy Data section of the policy. The amount of the policy value credit is determined by multiplying
the policy value credit percentage times the Policy Value minus any Indebtedness at the time the calculation is made. We reserve the right to calculate and apply any policy value credit annually, quarterly or monthly.
Any policy value credit will be allocated according to your
premium allocation percentages in effect. Any policy value credit is nonforfeitable, except indirectly due to any applicable Surrender Charge.
We reserve the right to change the policy value credit
percentage based on our expectations of future investment earnings, persistency and expenses. However, it will never be less than zero.
Overloan Protection Benefit (OPB). The overloan protection benefit prevents the policy from Lapsing due to the loan balance exceeding Policy Value. The OPB is included with new policies. The feature may be exercised by the policy Owner when all of the
following conditions are met:
•
|
The policy has been in force
for at least 15 years; and |
•
|
The youngest Insured’s
Attained Insurance Age is at least 75 but not greater than 95; and |
•
|
Policy Indebtedness must be
greater than the Specified Amount and greater than or equal to the Indebtedness percentage shown under Policy Data; and |
•
|
The Cash Surrender Value is
sufficient to pay the exercise charge; and |
•
|
The death benefit option in
effect is option 1; and |
•
|
The policy has not yet
entered the grace period; and |
•
|
The policy is not a modified
endowment contract, as defined by Section 7702A of the Internal Revenue Code, and exercising the benefit does not cause the policy to become a modified endowment contract; and |
•
|
No current or future
distributions will be required from the policy to maintain its qualification for treatment as a life insurance policy under the Internal Revenue Code; and |
•
|
The sum
of partial surrenders taken to date are greater than or equal to the amount that can be withdrawn from the policy without creating adverse tax consequences. |
If all of the above conditions have been met, the policy owner
may submit a written request to exercise the benefit to prevent the policy from entering the grace period. The benefit will become effective on the next monthly anniversary following receipt of request. Exercising the benefit is irrevocable.
A onetime charge to exercise the benefit will be deducted from
Policy Value. The charge is a percentage of the Policy Value that will not exceed the maximum exercise charge of 3%.
Once the OPB has been exercised, the following changes to the
base policy will occur:
1.
|
Premium payments are no
longer accepted; however, loan repayments will be accepted. |
2.
|
Monthly deductions will no
longer be taken. |
3.
|
Partial surrenders will no
longer be available. |
4.
|
Additional loans will no
longer be available. |
5.
|
Any outstanding loan will
remain and interest will be charged at the current loan interest rate as shown under Policy Data. |
6.
|
The NLG will no longer be in
effect and cannot be reinstated. |
7.
|
The death benefit option
cannot be changed. |
8.
|
Changes to the Specified
Amount will no longer be allowed. |
9.
|
Any
riders attached to the policy will terminate. |
Once the benefit has been exercised, the death benefit will be
the applicable percentage from the Death Benefit Percentage Table as shown under Policy Data, multiplied by Policy Value or Indebtedness, whichever is greater. The OPB will terminate upon termination of the policy. If the policy terminates and is
later reinstated, the OPB will also be reinstated with the policy. When the OPB available to exercise, a notification will be sent to the policy owner. Once the benefit is exercised, a notification listing the changes to the policy will be sent to
the policy owner.
48 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Exchange for a
Fixed Benefit Policy. For two years after the policy is issued, we may allow you to exchange your policy for a life insurance policy with benefits that do not vary with the investment experience of the Subaccounts
(“Fixed Benefit Policy”). This is accomplished by a transfer of all of the value in the Subaccounts to the Fixed Account and/or Indexed Account(s) without charge. The rules for transferring from the Subaccounts to the Fixed Account
following a Fixed Account to Subaccount transfer will be waived only once.
Depending on the timing and the individual circumstances
surrounding the exchange, the Fixed Benefit Policy will be on the life of the same Insureds and at the time of the exchange will have the same Policy Date and issue ages and a death benefit at least as great as the initial death benefit of your
policy (assuming no decrease in Specified Amount prior to the exchange). The exchange may be subject to an equitable cash adjustment, which will recognize the investment performance of the policy through the effective date of the exchange and may
have tax consequences. An exchange will be effective when we receive a written request in Good Order.
Example:
John Doe lives in California and is the Owner and Insured of a
variable universal life insurance policy. Twelve months after the policy is issued, John decides he would rather own a policy that is not subject to the investment experience of the Funds in which the Variable Account divisions that support his
policy invest, and would rather own a policy that earns a fixed rate of interest. Subject to the company’s requirements, John has up to twelve more months to exchange his variable policy for a fixed policy without the company requiring
evidence of insurability.
Changes to the Policies
We reserve the right to do any of the following:
•
|
make any changes necessary
to maintain the status of the policy as life insurance under the Code; |
•
|
make other changes required
under federal or state law relating to life insurance; |
•
|
suspend or discontinue sale
of the policies; and |
•
|
comply
with applicable law. |
We will give
you any required notice and receive any regulatory approval before we make any of these changes.
Policy Loans
You may borrow against your policy by written or telephone
request. (See “Two Ways to Request a Transfer, Loan or Surrender” for the address and telephone numbers for your requests.) Generally, we will process your loan within seven days after we receive your request in Good Order at our Service
Center (for exceptions — see “Deferral of Payments,” under “Payment of Policy Loans, Surrenders and Death Benefit Proceeds”). We will mail loan payments to you by regular mail. If you request express mail delivery or an
electronic fund transfer to your bank, we will charge a fee. For instructions, please contact your sales representative.
Minimum Loan Amounts
Generally, the minimum you can borrow from your policy is
$500. Please see your policy for further details.
Maximum Loan Amounts
•
|
90% of the Policy Value
minus Surrender Charges. |
•
|
For phone
requests, if loan Proceeds are being sent to your address of record the maximum loan amount is $100,000. |
The amount available at any time for a new loan is the maximum
loan value less any existing Indebtedness. When we compute the amount available, we reserve the right to deduct from the loan value interest for the period until the next Policy Anniversary and monthly deductions that we will take until the next
Policy Anniversary.
Allocation of Loans to
Accounts
Unless you specify otherwise, we will make the
loan from the Fixed Account and the Subaccounts on a Pro Rata Basis. In determining these proportions, we first subtract the amount of any outstanding Indebtedness from the Fixed Account Value.
We redeem Accumulation Units to make loan amounts from the
Subaccounts. When the FIxed Account, minus any Indebtedness, and the Subaccounts are exhausted, the loan will be taken from the Indexed Accounts. (See “Order of Deductions from Policy Value” for further discussion.) The amount of any
loan or loan interest taken from the Subaccounts and Indexed Accounts will be transferred from the Subaccounts and Indexed Accounts to the Fixed Account.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 49
Repayments
We will allocate loan repayments to Subaccounts, Indexed
Accounts and/or the Fixed Account using the premium allocation percentages in effect unless you tell us otherwise.
Overdue Interest
If you do not pay accrued interest when it is due, we will
increase the amount of Indebtedness in the Fixed Account to cover the amount due. Interest added to a policy loan will be charged the same interest rate as the loan itself. We will take that interest from the Fixed Account and the Subaccounts with
value on a Pro Rata Basis. When the Fixed Account, minus any Indebtedness, and the Subaccounts are exhausted, the additional loan interest will be taken from the Indexed Accounts. See “Order of Deductions from Policy Value” for further
discussion.
Effect of Policy Loans
A policy loan, whether or not repaid, affects cash value over
time because the loan amount is subtracted from the Fixed Account, Subaccounts and/or Indexed Accounts as collateral. The loan collateral does not participate in the investment performance of the Subaccounts, nor does it receive indexed interest.
The loan collateral earns interest at the minimum guaranteed rate of the Fixed Account (See “The Fixed Account”). Payment of this interest is subject to the creditworthiness and continued claims-paying ability of RiverSource Life
Insurance Co. of New York. Starting in year 11 of the policy, the interest rate charged on the loan will be equal to the interest rate credited on the loan collateral. We reserve the right to change the interest rate charged on the loan; however, it
will never exceed the maximum stated in the Periodic Charges Other than Fund Operating Expenses section of this prospectus. A loan reduces the policy surrender value. If the loan causes the Cash Surrender Value to drop to zero, the policy will
Lapse. The death benefit is reduced by loan Indebtedness. A loan may also cause the NLG to terminate.
Policy Surrenders
You may cancel the policy while it is in force and receive its
Cash Surrender Value or take a partial surrender out of your policy. The Cash Surrender Value is the Policy Value minus Indebtedness minus any applicable Surrender Charges. If you surrender your policy, you receive its Cash Surrender Value, which is
the Policy Value minus outstanding Indebtedness and applicable Surrender Charges. (See “Loads, Fees and Charges.”)
Surrender Charges affect the surrender value, which is a
measure we use to determine whether your policy will enter a grace period (and possibly Lapse, which may have adverse tax consequences, see “Tax Risk”).
A partial surrender will reduce the Policy Value and the death
benefit and may terminate the NLG. Additionally, for Option 1 policies, a partial surrender will reduce the Specified Amount. Partial surrenders are available within certain limits for a fee. After the first policy year, you may take a partial
surrender of any amount from $500 up to 90% of the policy’s Cash Surrender Value. Partial surrenders by telephone are limited to $100,000, provided that surrender Proceeds are sent to your address of record. Unless you specify otherwise, we
will make partial surrenders from the Fixed Account and Subaccounts on a Pro Rata Basis. When the Fixed Account, minus any Indebtedness, and the Subaccounts are exhausted, the partial surrender will be made from the Indexed Accounts. See
“Order of Deductions from Policy Value” for further discussion.
Surrender Charges apply to this policy for the first ten
years. Surrender Charges can significantly reduce Policy Values. Poor investment performance can also significantly reduce Policy Values. During early policy years the Cash Surrender Value may be less than the premiums you pay for the policy.
If your policy Lapses or is fully surrendered with an
outstanding policy loan, you may experience a significant tax cost.
•
|
You will be taxed on any
earnings in the policy. Generally, a policy has earnings to the extent the cash value plus any outstanding loans exceeds the investment in the contract. |
•
|
For non-MEC policies, it
could be the case that a policy with a relatively small existing cash value could have significant as yet untaxed earnings that will be taxed upon Lapse or surrender of the policy. |
•
|
For MEC
policies, earnings are the remaining earnings (any earnings that have not been previously taxed) in the policy, which could be a significant amount depending on the policy. |
You may take a full or a partial surrender by written request.
We may, but are not required to, accept a full or partial surrender request from you by phone. (See “Two Ways to Request a Transfer, Loan or Surrender” for address and telephone numbers for your requests.) We will process your surrender
request on the Valuation Date we receive it. If we receive your surrender request at our Service Center in Good Order 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 Service Center in Good Order 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 require you to return your policy. Generally, we will process your payment within seven days
50 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
(for exceptions — see
“Deferral of Payments” under “Payment of Policy Loans, Surrenders and Death Benefit Proceeds”). We will mail surrender payments to you by regular mail. If you request express mail delivery, we will charge a fee. You may also
request that payment be wired to your bank. We will charge a fee if you request an electronic funds transfer to your bank. For instructions, please contact your sales representative.
Effect of partial surrenders
•
|
A partial surrender will
reduce the Policy Value by the amount of the partial surrender and the partial Surrender Charge. (See “Fee Tables” and “Loads, Fees and Charges.”) |
•
|
A partial surrender will
reduce the death benefit by the amount of the partial surrender and charge, or, if the death benefit is based on the applicable percentage of Policy Value, by an amount equal to the applicable percentage times the amount of the partial surrender.
|
•
|
A partial surrender may
terminate the NLG. We deduct the surrender amount from total premiums you paid, which may reduce the total below the level required to keep the the NLG in effect. |
•
|
If Option 1 is in effect, a
partial surrender will reduce the Specified Amount by the amount of the partial surrender and charge. This may cause the policy to become a Modified Endowment Contract. We will deduct this decrease from the current Specified Amount in this order:
|
|
First from the initial
Specified Amount when the policy was issued; |
|
Then from the increases
successively following the initial Specified Amount. |
•
|
Because they reduce the
Specified Amount, partial surrenders may affect the cost of insurance. We will not allow a partial surrender if it would reduce the Specified Amount below the required minimum. (See “Decreases” under “Proceeds Payable Upon
Death.”) |
•
|
If Option
2 is in effect, a partial surrender does not affect the Specified Amount. |
Two Ways to Request a Transfer, Loan or Surrender
You can request a transfer, loan or surrender by mail or by
phone. You will be required to provide your name, policy number, Social Security Number or Taxpayer Identification Number when you request a transfer, loan or partial surrender. Failure to provide a Social Security Number or Taxpayer Identification
Number may result in mandatory income tax withholding on the taxable portion of the distribution.
1
1 By mail
To request a transfer, loan or surrender by mail, please call
us at the number below or contact your sales representative to obtain the required request form. Mail the completed request form to:
RiverSource Life Insurance Co. of New York
70500 Ameriprise
Financial Center
Minneapolis, MN 55474
2
2 By phone
1-800-541-2251
•
|
We answer telephone requests
promptly, but you may experience delays when 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, loan or partial surrender requests believed to be authentic and will use reasonable procedures to confirm that they are. These include asking identifying questions and recording calls. As long as these procedures are followed, neither we
nor our affiliates will be liable for any loss resulting from fraudulent requests. |
•
|
We make
telephone transfers, loans and partial surrenders available automatically. If you do not want telephone transfers, loans and partial surrenders to be made from your account, please write and tell us. |
DELIVERY OPTIONS FOR LOAN OR SURRENDER PROCEEDS
1
1 By regular or express mail
•
|
payable to you; |
•
|
mailed to
your address of record. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 51
NOTE: We will charge you a fee if you request express mail delivery. (See “Fees for Express Mail and Electronic Fund Transfers of Loan or Surrender Proceeds”.)
2
2 By wire or other form of electronic payment
•
|
request that payment be
wired to your bank account; |
•
|
pre-authorization
required. |
NOTE: We will charge you a fee if you request electronic fund transfer. (See “Fees for Express Mail and Electronic Fund Transfers of Loan or Surrender Proceeds”.)
We may choose to permit you to have checks issued and
delivered to an alternate payee or to an address other than your address of record. We may also choose to allow you to direct wires or other electronic payments to accounts owned by a third-party. We may have additional Good Order requirements that
must be met prior to processing requests to make any payments to a party other than the policy Owner or to an address other than the address of record. These requirements will be designed to ensure policy Owner instructions are genuine and to
prevent fraud.
Payment of Policy Loans, Surrenders and
Death Benefit Proceeds
We will pay Proceeds when:
•
|
you surrender the policy; or
|
•
|
you take a policy loan; or
|
•
|
the last
surviving Insured dies. |
We pay
all death benefit Proceeds by check (unless the Beneficiary has chosen to have death benefit Proceeds directly deposited into another Ameriprise Financial, Inc. account). We will compute the amount of the death benefit and pay it in a lump sum
unless you select one of the payment options below. We will pay interest at a rate not less than 1% per year on lump sum death benefit Proceeds from the date of the last surviving Insured’s death to the settlement date (the date on which
we pay Proceeds in a lump sum or we first place them under a payment option).
Payment Options
During the Insureds’ lifetimes, you may request in
writing that we pay policy Proceeds under one or more of the three payment options below. The Beneficiary may also select a payment option, unless you say that he or she cannot. You decide how much of the Proceeds will be placed under each option
(minimum: $5,000). We will transfer any such amount to our general investment account. You may also make a written request to change a prior choice of payment option or, if we agree, to elect a payment option other than the three listed below.
Unless we agree otherwise, payments under all options must be made to a natural person.
Option A — Interest Payments: We will pay interest on any Proceeds placed under this option at a rate 1% per year compounded annually, at regular intervals and for a period that is agreeable to both you and us. At the end of any payment
interval, you may withdraw Proceeds in amounts of at least $100. At any time, you may withdraw all of the Proceeds that remain or you may place them under a different payment option approved by us.
Option B — Payments for a specified period: We will make fixed monthly payments for the number of years you specify. We will furnish monthly amounts for payment periods at your request, without charge.
Option C — Lifetime income: We will make monthly payments for the life of the person (payee) who is to receive the income. We will guarantee payment for 5, 10 or 15 years. We will furnish settlement rates for any year, age, or any combination of
year, age and sex at your request, without charge.
Deferral of Payments
Normally, we will send a payment within seven days after
receiving your request in Good Order. However, we reserve the right to postpone payments of Cash Surrender Value, policy loans or variable death benefit Proceeds in excess of the Specified Amount if:
•
|
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 to value the net assets of the accounts; or |
•
|
the SEC
permits us to delay payment for the protection of security holders. |
We may also postpone payment of the amount attributable to a
purchase payment as part of the total surrender amount until cleared from the originating financial institution.
52 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
We may delay
payment of any loans or surrenders from the Fixed or the Index Account for up to six months from the date we receive the request in Good Order. If we postpone the payment of the Proceeds, we will pay any interest required by law.
Federal Taxes
The following is a general discussion of the policy’s
federal income tax implications. It is not intended as tax advice. Because the effect of taxes on the value and benefits of your policy depends on your individual situation, YOU SHOULD CONSULT A TAX ADVISOR TO FIND OUT HOW THESE GENERAL
CONSIDERATIONS APPLY TO YOU. The discussion is based on our understanding of current federal income tax laws and of how the IRS currently interprets them. Both the laws and their interpretation may change.
You should make the decision as to who the Owner and the
Beneficiary will be after consultation with your tax and legal advisors. These decisions may significantly affect the amount due for federal and state income tax, gift tax and estate or inheritance tax and also your ownership rights to the
policy.
The policy is intended to qualify as a life
insurance policy for federal income tax purposes. To that end, the provisions of the policy are to be interpreted to ensure or maintain this tax qualification. We reserve the right to change the policy in order to ensure that it will continue to
qualify as life insurance for tax purposes. We will send you a copy of any changes.
Income tax reporting and withholding: If any amounts are (or are deemed to be) taxable distributions to the policy Owner, such amounts will generally be subject to federal income tax and possibly a tax penalty, and may be subject to federal withholding
pursuant to the Code. (See “Taxation of Policy Proceeds.”) Such amounts will also be subject to tax reporting. Reporting may also be required in the event of a policy exchange or other distributions from the policy even if no amounts are
currently subject to tax. State income tax reporting and withholding may also apply.
Diversification and investor control: A variable life insurance policy must meet a diversification test under Section 817(h) of the Code and is subject to an investor control rule. Failure to meet either of these tests means that a life insurance policy
fails to qualify as a life insurance policy for federal income tax purposes. The diversification test requires the underlying Funds to be invested in a diversified portfolio of assets based on IRS rules. The investor control rule has been
established in a number of published rulings issued by the IRS. According to the IRS, determining whether the policy Owner has sufficient incidents of ownership over assets invested in the Subaccounts to be considered the owner of those assets
depends on all of the relevant facts and circumstances. The IRS has provided guidance on several factors that, if present, would suggest investor control exists, or, alternatively, would indicate that investor control does not exist. The IRS has to
date not yet ruled on several other issues. We reserve the right to modify the policy, as necessary, so that the Owner will not be subject to current taxation as the owner of the Subaccounts’ assets.
RiverSource Life of NY’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 the Subaccount invests
and becomes part of the Subaccount’s value. This investment income, including realized capital gains, is not subject to any withholding for federal or state 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 life insurance policies or in our tax status as we then understand it. The company includes in its taxable income the net investment income derived from the investment of assets held in its Subaccounts because
the company is considered the owner of these assets under federal income tax law. The company may claim certain tax benefits associated with this investment income. These benefits, which may include foreign tax credits and the corporate
dividend received deduction, are not passed on to you since the company is the owner of the assets under federal tax law and is taxed on the investment income generated by the assets.
Taxation of Policy Proceeds
Death benefit Proceeds: The
death benefit paid to the Beneficiary generally is not considered income to the Beneficiary and is not subject to federal income taxes. When the Proceeds are paid on or after the youngest Insured’s Attained Insurance Age 120, if the amount
received plus any Indebtedness exceeds your investment in the policy, the excess may be taxable as ordinary income.
Death benefit Proceeds under Payment Option A: The death benefit Proceeds generally are not subject to income tax, but payments of interest under this payment option are taxable and may be reported to the IRS and a state, if applicable.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 53
Death benefit
Proceeds under Payment Options B and C: A portion of each payment will be taxed as ordinary income and a portion will be considered a return of the Beneficiary’s investment in the policy and will not be taxed.
The Beneficiary’s investment in the policy is generally the death benefit Proceeds applied to the payment options. Under Option C only, any payments made after the investment in the policy is fully recovered will be subject to tax. Any taxable
earnings may be reported to the IRS and a state, if applicable.
Pre-death Proceeds (See the following table.): Generally, part or all of any pre-death Proceeds received through full surrender, Lapse, partial surrender, or payment options may be subject to federal (and state, if applicable) income tax as ordinary income to the
extent of any earnings in the policy. Depending on the situation, these rules may also apply to policy loans and an assignment of the policy as collateral. It is possible that the amount of taxable income generated at the Lapse or surrender of a
policy with a loan may exceed the actual amount of cash received. In some cases, the tax liability depends on whether the policy is a modified endowment contract (explained in the following table). The taxable amount may also be subject to an
additional 10% IRS penalty tax if the policy is a modified endowment contract and you are younger than age 59½. (See “Penalty tax” under “Modified Endowment Contracts.”)
Source
of Proceeds |
Taxable
Portion of Pre-death Proceeds |
Non-Modified
Endowment Contracts: |
Taxable
portion of pre-death Proceeds: |
Full
surrender: |
You will
be taxed on the amount received, plus any Indebtedness, minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the
time of full surrender — these earnings may be part of the policy cash value or part of loans previously taken. It could be the case that a policy with a relatively small existing Cash Surrender Value could have significant earnings that will
be taxed upon surrender of the policy. |
Lapse:
|
You will
be taxed on any Indebtedness minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the time of Lapse — these
earnings may be part of the policy cash value or part of loans previously taken. It could be the case that a policy with a relatively small existing Cash Surrender Value could have significant earnings that will be taxed upon Lapse of the policy.
|
Partial
Surrenders: |
Generally,
if the amount received is greater than your investment in the policy,(1) the amount in excess of your investment is taxable. However, during the first 15
policy years, a different amount may be taxable if the partial surrender results in or is necessitated by a reduction in benefits. |
Policy
loans and assignments and pledges: |
None.
(2) |
|
Modified
Endowment Contracts:(3) |
Taxable
portion of pre-death Proceeds: |
Full
surrender: |
You will
be taxed on the amount received, plus any Indebtedness, minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the
time of full surrender — these earnings may be part of the policy cash value or part of loans previously taken. Please note, for modified endowment contracts, it is likely that any earnings taken in previous policy loans were taxable and would
be included in the investment in the policy. |
Lapse:
|
You will
be taxed on any Indebtedness minus your investment in the policy.(1) You will be taxed on any earnings in the policy at the time of Lapse — these
earning may be part of the policy cash value or part of loans previously taken. |
Partial
Surrenders: |
You will
be taxed on the lesser of: |
|
•
the amount received; or |
|
•
Policy Value minus your investment in the policy.(1) |
Policy
loans and assignments and pledges: |
You will
be taxed on the lesser of: |
|
•
the amount of the loan/assignment; or |
54 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Source
of Proceeds |
Taxable
Portion of Pre-death Proceeds |
|
•
Policy Value minus your investment in the policy.(1) |
|
Payment
Options: Pre-death Proceeds (applicable to non-modified endowment contracts and modified endowment contracts): |
Option A: Treated as a full surrender; earnings are taxed and may be subject to an additional 10% penalty tax for modified endowment contracts. Interest is taxed (but not subject to an additional 10% IRS penalty tax).
|
|
Options B
and C: A portion of each payment is taxed and a portion is considered a return on investment in the policy(1) and not
taxed. Any Indebtedness at the time the option is elected is treated as a partial surrender and earnings are taxed (and may be subject to an additional 10% penalty tax for modified endowment contracts). Payments made after the investment in the
policy(1) is fully recovered are taxed (and may be subject to an additional 10% penalty tax for modified endowment contracts). |
|
(1) |
Investment in the policy is
generally equal to premiums paid, minus the nontaxable portion of any previous partial surrenders, plus taxable portion of any previous policy loans. (for non-modified endowment contracts, it is unlikely that any previous policy loans were taxable).
|
(2) |
However, should the policy
later be surrendered or Lapse with outstanding Indebtedness, see discussion related to “full surrender” or “Lapse” under “Source of Proceeds” in the “Non-Modified Endowment Contracts” section shown
above for the explanation of tax treatment. |
(3) |
Any
taxable portion of pre-death Proceeds may be subject to a 10% IRS penalty tax (exceptions apply — see “Penalty tax” under “Modified Endowment Contracts.”) |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 55
Modified
Endowment Contracts
Your policy is a modified endowment
contract if the premiums you pay in the first seven years of the policy, or the first seven years following a material change, exceed certain limits.
If you exchanged a policy that is a modified endowment
contract under section 1035 of the Code, your new policy also will be a modified endowment contract. If you exchanged a policy that is a non-modified endowment contract, your new policy may become a modified endowment contract.
We have procedures for monitoring whether your policy becomes
a modified endowment contract. We calculate modified endowment contract limits when we issue the policy. We base these limits on the benefits we provide under the policy and on the Risk Classification, sex and age of the Insureds. We recalculate
these limits later if certain increases or reductions in benefits occur.
If you pay a premium that causes your policy to become a
modified endowment contract under the Code, we will notify you in writing. If you do not want your policy to remain a modified endowment contract, you can choose one of the following options within the time period stated in the notice:
•
|
ask us to refund the excess
premium that caused the policy to become a modified endowment contract, plus interest; or |
•
|
ask us to
apply the excess premium to your policy at a later date when it would not cause the policy to become a modified endowment contract. |
You do not have to choose either of these options. If you do
not choose one of these options, your policy will remain a modified endowment contract for the life of the policy. (See “Modified Endowment Contracts” in the table under “Taxation of Policy Proceeds.”)
Increases in benefits: We
recalculate limits when an increase is a “material change.” Almost any increase you request, such as an increase in Specified Amount, the addition of a rider benefit or an increase in an existing rider benefit, is a material change. An
automatic increase under the terms of your policy, such as an increase in death benefit due to operation of the applicable percentage table described in the “Proceeds Payable upon Death” section or an increase in Policy Value growth
under Option 2, generally is not a material change. A policy becomes a modified endowment contract if premiums you pay in the first seven years following a material change exceed the recalculated limits.
Reductions in benefits: When
you reduce benefits within seven years after we issue the policy or after the most recent material change, we recalculate the limits as if the reduced level of benefits had been in effect for the entire applicable seven-year period. In most cases,
this recalculation will further restrict the amount of premiums that you can pay without exceeding modified endowment contract limits. If the premiums you have already paid exceed the recalculated limits, the policy will become a modified endowment
contract with applicable tax implications even if you do not pay any further premiums.
Distributions affected:
Modified endowment contract rules apply to distributions in the year the policy becomes a modified endowment contract and in all subsequent years. In addition, the rules apply to distributions taken two years before the policy becomes a modified
endowment contract because the IRS presumes that you took a distribution in anticipation of that event.
Serial purchase of modified endowment contracts: The IRS treats all modified endowment contracts issued by the same insurer (or possibly affiliated companies of the insurer) to the same Owner during any calendar year as one policy for purposes of determining the
amount of any loan or distribution that is taxable.
Penalty tax: If a policy is a
modified endowment contract, the taxable portion of pre-death Proceeds from a full surrender, Lapse, partial surrender, policy loan or assignment of Policy Value or certain payment options may be subject to a 10% penalty tax unless:
•
|
the distribution occurs on
or after the date that the Owner attains age 59½; |
•
|
the distribution is
attributable to the Owner becoming disabled (within the meaning of Section 72(m)(7) of the Code); or |
•
|
the
distribution is part of a series of substantially equal periodic payments made at least once a year over the life (or life expectancy) of the Owner or over the joint lives (or life expectancies) of the Owner and the Owner’s Beneficiary.
|
(See “Taxation of Policy
Proceeds”, “Pre-death Proceeds” and accompanying table.)
Other Tax Considerations
Interest paid on policy loans:
Generally, no deduction is allowed for interest paid or accrued on any Indebtedness with respect to life insurance policies. However, a deduction is allowed under Section 264(e) of the Code for interest (subject to certain interest rate limitations)
on policy loans of a business with respect to certain key person insurance. The aggregate amount of Indebtedness that can be borrowed on that key individual (who must be an officer or 20-percent
56 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
owner of the business) may not
exceed $50,000. The amount of key persons is limited to a maximum of 20 with respect to any controlled group of companies. A business that falls within the exception of Section 264(e) and is allowed a deduction for interest with respect to
key-person insurance up to $50,000 nonetheless must also not fall within either of the prohibitions of Sections 264(a)(2) (with respect to certain single premium policies), and (a)(3) (Indebtedness incurred or continued to purchase or carry a life
insurance contract pursuant to a plan of purchase which contemplates the systematic borrowing of part or all of the increases in the cash value).
Policy changes: Changing
ownership, exchanging or assigning the policy may have income, gift and/or estate tax consequences, depending on the circumstances.
1035 exchanges: See
“Exchange/Replacement Risk” under “Policy Risk” for potential risks associated with 1035 exchanges. Section 1035 of the Code permits nontaxable exchanges of certain insurance policies, endowment contracts, annuity contracts
and qualified long-term care insurance contracts while providing for continued tax deferral of earnings. In addition, Section 1035 permits the carryover of the investment in the contract from the old policy or contract to the new policy or contract.
In a 1035 exchange one policy or contract is exchanged for another policy or contract. The following are nontaxable exchanges: (1) the exchange of a life insurance policy for another life insurance policy or for an endowment, annuity or qualified
long-term care insurance contract, (2) the exchange of an endowment contract for an annuity or qualified long-term care insurance contract, or for an endowment contract under which payments will begin no later than payments would have begun under
the contract exchanged, (3) the exchange of an annuity contract for another annuity contract or for a qualified long-term care insurance contract, and (4) the exchange of a qualified long-term care insurance contract for a qualified long-term care
insurance contract. Additionally, other tax rules apply. Depending on the issue date of your original policy or contract, there may be tax or other benefits that are given up to gain the benefits of the new policy or contract. Consider whether the
features and benefits of the new policy or contract outweigh any tax or other benefits of the old policy or contract. If the life insurance policy has an outstanding loan, there may be tax consequences. Currently, partial exchanges of life insurance
policies are not allowed by the company because there is no guidance from the IRS.
Other taxes: Federal estate
tax, state and local estate or inheritance tax, federal or state gift tax and other tax consequences of ownership or receipt of policy Proceeds will also depend on the circumstances. All of these laws are subject to change.
Employer-owned life insurance:
The Pension Protection Act (PPA) of 2006 amended Section 101 of the Code by adding a new Section 101(j) that addresses the tax treatment of “employer-owned life insurance” (EOLI). Unless one of four specified conditions is met and the
notice and consent requirements are met, any death benefits in excess of the premiums paid are taxed. In general, an EOLI contract is any life insurance contract owned by a person engaged in a trade or business and under which such person or any
related person is directly or indirectly a Beneficiary under the contract and that covers the life (or lives) of an employee of the employer (or certain related persons). Additionally, an applicable policyholder owning 1 or more employer-owned life
insurance contracts is required to file a Form 8925 with the IRS. The applicable policyholder is required to keep records necessary to determine whether the requirements of the reporting rule and the income inclusion rule are met.
The four specified conditions are:
•
|
The last surviving Insured
was an employee at any time during the 12-month period before that Insured’s death; |
•
|
The Insureds are, at the
time the contract is issued a director, a highly compensated employee as defined by reference to the qualified plan rules in Section 414(q) or one of the 35% most highly compensated individuals within the
meaning of self-insured health plans; |
•
|
The death benefits are paid
to a member of the family of the last surviving Insured, any individual who is the designated Beneficiary of the Insured under the contract (other than the employer), a trust established for the benefit of any such member of the family or designated
Beneficiary, or the estate of the last surviving Insured; or |
•
|
The
amount is used to purchase an equity (or capital or profits) interest in the employer from a family member of the last surviving Insured, an individual who is a designated Beneficiary, a trust established for the benefit of a family member or
designated Beneficiary, or the estate of the last surviving Insured. |
The notice and consent requirements are met if, before the
issuance of the policy, the employee:
•
|
Is notified in writing that
the applicable policyholder intends to insure the employee’s life and of the maximum face amount for which the employee could be insured at the time the contract was issued; |
•
|
Provides written consent to
being insured under the contract and that such coverage may continue after the Insured terminates employment; and |
•
|
Is
informed in writing that an applicable policyholder will be a Beneficiary of any Proceeds payable upon the death of the employee. |
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 57
Split Dollar
Arrangements
The following is a general discussion of
the federal income tax implications of a split dollar arrangement entered into or materially modified after Sept. 17, 2003. You should consult your legal and tax advisors before developing or entering into a split dollar arrangement.
A typical split-dollar life insurance agreement is an
arrangement under which two parties agree to share the costs and benefits of a permanent life insurance contract which provides both a death benefit and cash values. The arrangement divides or “splits” between two parties the death
benefit and the cash value of the policy or other economic benefits under the contract. The objective of a split dollar arrangement is to join together the life insurance needs of one party with the premium paying ability of another. The typical
split dollar arrangement is between an employer and an employee, but the arrangement may be used in other relationships, such as between a corporation-shareholder, a parent and a child, or a donor and a charity.
Traditionally, there have been two types of split dollar
arrangements. In the “endorsement” system, the employer owns the policy and is responsible for the payment of the annual premiums. The employee is then required to reimburse the employer for his or her share, if any, of the premiums. The
“collateral assignment system” is described as a system in which the employee in form owns the policy and pays the entire premium. The employer in form makes annual loans (sometimes without interest or below the fair rate of interest),
to the employee of amounts equal to the yearly increases in the Cash Surrender Value, but not exceeding the annual premiums. The employee executes an assignment of the policy to the employer as collateral security for the loans. The loans are
generally payable at the termination of employment or the death of the employee. In a reverse split dollar plan, the payor of the premiums retains the life insurance protection and another party owns the rights to the cash value of the policy.
The Treasury regulations define a split dollar life insurance
arrangement as any arrangement between an Owner of a life insurance contract and a non-owner of the contract under which either party to the arrangement pays all or part of the premiums, and one of the parties paying the premiums is entitled to
recover (either conditionally or unconditionally) all or any portion of those premiums and such recovery is to be made from, or is secured by, the Proceeds of the contract. The definition is not intended to include life insurance plans where only
one party has all the rights to the policy such as group-term plans (Section 79 of the Code), executive bonus arrangements or key-person plans.
Under a special rule, any arrangement between an Owner and a
non-owner of a life insurance contract is treated as a split-dollar life insurance arrangement (regardless of whether the criteria set forth above are satisfied) if the arrangement is entered into in connection with the performance of services and
is not part of a group-term life insurance plan described in Section 79, the employer or service recipient pays, directly or indirectly, all or any portion of the premiums; and either (1) the Beneficiary of all or any portion of the death benefit is
designated by the employee or service provider or is any person whom the employee or service provider would reasonably be expected to designate as the Beneficiary; or (2) the employee or service provider has any interest in the policy cash value of
the life insurance contract. For example, in a compensatory context in which the employer owns the contract, the employee must include in gross income the value of any interest in the Cash Surrender Value of the contract provided to the employee
during a taxable year.
Another special rule provides
that an arrangement is a split-dollar arrangement (regardless of whether the criteria set forth above are satisfied) if the arrangement is entered into between a corporation and another person in that person’s capacity as a shareholder in the
corporation; the corporation pays, directly or indirectly, all or any portion of the premiums; and either (1) the Beneficiary of all or any portion of the death benefit is designated by the shareholder or is any person whom the shareholder would
reasonably be expected to designate as the Beneficiary; or (2) the shareholder has any interest in the policy cash value of the life insurance contract.
Mutually Exclusive Regimes
The regulations provide for two mutually exclusive regimes for
taxing split-dollar life insurance arrangements. The regulations apply for purposes of income tax, gift tax, FICA, FUTA, RRTA, SECA, and wage withholding. The regulations require both the Owner and non-owner of a life insurance contract to fully
account for all amounts under the arrangement under the rules that apply to the regime under which the arrangement is taxed.
•
|
Economic Benefit Split Dollar: As a general rule for split-dollar life insurance arrangements that are taxed under the economic benefit regime, the Owner of the life insurance contract is treated as providing economic benefits to the non-owner of the
contract. The economic benefit regime generally will govern the taxation of endorsement arrangements. Also, a special rule requires the economic benefit regime to apply (and the loan regime not to apply) to any split-dollar life insurance
arrangement if: (i) the arrangement is entered into in connection with the performance of services, and the employee or service provider is not the Owner of the life insurance contract; or (ii) the arrangement is entered into between a donor and a
donee (for example, a life insurance trust) and the donee is not the Owner of the life insurance contract. |
58 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
|
The value of the economic
benefits, reduced by any consideration paid by the non-owner to the Owner, is treated as transferred from the Owner to the non-owner. The possible economic benefits provided to the non-owner can include the value of current life insurance coverage,
any portion of the Cash Surrender Value available to the non-owner, and any other economic benefit. The tax consequences of that transfer will depend on the relationship between the Owner and the non-owner. Thus, the transfer may constitute a
payment of compensation, a dividend distribution, a gift, or a transfer having a different tax character. Further, depending on the relationship between or among a non-owner and one or more other persons (including a non-owner or non-owners), the
economic benefits may be treated as provided from the Owner to the non-owner and as separately provided from the non-owner to such other person or persons (for example, as a payment of compensation from an employer to an employee and as a gift from
the employee to the employee’s child). |
•
|
Loan (Collateral Assignment)
Split Dollar: Under loan regime, the non-owner of the life insurance contract is treated as loaning premium payments to the Owner of the contract. Except for specified arrangements, the loan regime applies to any
split-dollar loan. A payment made pursuant to a split-dollar life insurance arrangement is a split-dollar loan and the Owner and non-owner are treated, respectively, as borrower and lender if (i) the payment is made either directly or indirectly by
the non-owner to the Owner; (ii) the payment is a loan under general principles of Federal tax law or, if not a loan under general principles of Federal tax law, a reasonable person would expect the payment to be repaid in full to the non-owner
(whether with or without interest); and (iii) the repayment is to be made from, or is secured by, either the policy’s death benefit Proceeds or its Cash Surrender Value, or both. A borrower generally may not deduct any interest on a
split-dollar. If the split-dollar loan provides for sufficient interest, then the loan generally is subject to the general rules for debt instruments. |
|
If a
split-dollar loan is a below-market loan, then, in general, the loan is recharacterized as a loan with interest at the applicable Federal rate (AFR), coupled with an imputed transfer by the lender to the borrower. The timing, amount, and
characterization of the imputed transfers between the lender and borrower of the loan will depend upon the relationship between the lender and the borrower (for example, the imputed transfer is generally characterized as a compensation payment if
the lender is the borrower’s employer), and whether the loan is a demand loan or a term loan. |
EOLI Requirements May Apply
A contract that is subject to a split dollar arrangement is an
employer-owned life insurance contract if the contract is owned by a person engaged in a trade or business and is otherwise described in Section 101(j) of the Code. However, the general rule of Section 101(j) does not apply to the extent any amount
received by reason of the death of the last surviving Insured is paid to a family member of the last surviving Insured, an individual who is a designated Beneficiary, a trust established for the benefit of a family member or designated Beneficiary.
Notice 2008-42 provides guidance regarding the application of Sections 101(j) to life insurance contracts that are subject to split-dollar life insurance arrangements.
Taxation — Determined by Policy Ownership
The regulations provide rules for determining the Owner and
the non-owner of the life insurance contract. The general rule is that the Owner is the person named as the policy Owner. If two or more persons are designated as the policy Owner, the first-named person generally is treated as the Owner of the
entire contract, however, if two or more persons are named as the policy Owner and each such person has at all times, all the incidents of ownership with respect to an undivided interest in the contract, those persons are treated as Owner of
separate contracts. The general rule that the person named as the policy Owner is treated as the Owner of the life insurance contract is subject to two exceptions involving situations in which the only benefit available under the split-dollar life
insurance arrangement is the value of current life insurance protection (that is, non-equity arrangements).
The regulations add attribution rules to determine the Owner
of a policy. Under these rules, if a split-dollar life insurance arrangement is entered into in connection with the performance of services, the employer or service recipient is treated as the Owner of the life insurance contract if the Owner under
the split-dollar life insurance arrangement is: (a) a trust described in Section 402(b); (b) A grantor trust that is treated as owned by either the employer or the service recipient; (c) a welfare benefit fund within the meaning of Section
419(e)(1); or (d) certain related parties.
If you are
considering a split dollar arrangement, you should consult your legal and tax advisor.
Section 409A
The Section 409A regulations explain that a split-dollar life
insurance arrangement may provide for deferred compensation, as determined through application of the general rules defining deferred compensation and a nonqualified deferred compensation plan. Notice 2007-34 was issued concurrently with the
regulations under Section 409A to provide guidance regarding the application of Section 409A to split-dollar life insurance arrangements. The Notice confirms that many split-dollar arrangements are not subject to Section 409A and provides that
certain modifications of these arrangements necessary to comply with, or avoid application of, Section 409A will not be treated
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 59
as material modifications under
the split dollar rules. The Notice further clarifies that a split-dollar arrangement generally provides for deferred compensation if the service provider has a legally binding right during a taxable year to compensation that is payable to or on
behalf of the provider in a later year. In addition, the regulations under Section 409A provide additional categories of plans for purposes of the aggregation rules, including a separate category for split-dollar arrangements.
Distribution of the Policy
RiverSource Distributors, Inc. (RiverSource Distributors), our
affiliate, serves as the principal underwriter and general distributor of the policy. Its office is located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial,
Inc.
Sales of the Policy
•
|
Only securities
broker-dealers (“selling firms”) registered with the SEC and members of the FINRA may sell the policy. |
•
|
The
policies are continuously offered to the public through authorized selling firms. We and RiverSource Distributors have a sales agreement with the selling firm. The sales agreement authorizes the selling firm to offer the policies to the public. We
agree to pay the selling firm (or an affiliated insurance agency) for policies its sales representatives sell. The selling firm may be required to return sales commissions under certain circumstances including but not limited to when policies are
returned under the free look period. |
Payments to the Selling Firms
In addition to commissions, we may, in order to promote sales
of the policies, and as permitted by applicable laws and regulations, pay or provide selling firms with other promotional incentives in cash, credit or other compensation. We generally (but may not) offer these promotional incentives to all selling
firms. The terms of such arrangements differ between selling firms. These promotional incentives may include but are not limited to:
—
|
sponsorship of marketing,
educational, due diligence and compliance meetings and conferences we or the selling firm may conduct for sales representatives, including subsidy of travel, meal, lodging, entertainment and other expenses related to these meetings; |
—
|
marketing support related to
sales of the policy including for example, the creation of marketing materials, advertising and newsletters; |
—
|
providing services to policy
Owners; and |
—
|
funding
other events sponsored by a selling firm that may encourage the selling firm’s sales representatives to sell the policy. |
These promotional incentives or reimbursements may be
calculated as a percentage of the selling firm’s aggregate, net or anticipated sales and/or total assets attributable to sales of the policy, and/or may be a fixed dollar amount. As noted below, this additional compensation may cause the
selling firm and its sales representatives to favor the policies.
Sources of Payments to Selling Firms
•
|
We pay the commissions and
other compensation described above from our assets. |
•
|
Our
assets may include: |
—
|
revenues we receive from
fees and expenses that you will pay when buying, owning and surrendering the policy (see “Fee Tables”); |
—
|
compensation we or an
affiliate receive from a Fund’s investment adviser, subadviser, distributor or an affiliate of any of these (see “The Variable Account and the Funds — The Funds”); and |
—
|
revenues
we receive from other contracts and policies we sell that are not securities and other businesses we conduct. |
•
|
You do not directly pay the
commissions and other compensation described above as the result of a specific charge or deduction under the policy. However, you may pay part or all of the commissions and other compensation described above indirectly through: |
—
|
fees and expenses we collect
from policy Owners, including Surrender Charges; and |
—
|
fees and
expenses charged by the underlying Funds in which the Subaccounts you select invest, to the extent we or one of our affiliates receive revenue from the Funds or an affiliated person. |
Potential Conflicts of Interest
Compensation payment arrangements with selling firms can
potentially:
•
|
give selling firms a
heightened financial incentive to sell the policy offered in this prospectus over another investment with lower compensation to the selling firm. |
60 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
•
|
cause selling firms to
encourage their sales representatives to sell you the policy offered in this prospectus instead of selling you other alternative investments that may result in lower compensation to the selling firm. |
•
|
cause a
selling firm to grant us access to its sales representatives to promote sales of the policy offered in this prospectus, while denying that access to other firms offering similar policies or other alternative investments which may pay lower
compensation to the selling firm. |
Payments to Sales Representatives
•
|
The selling firm pays its
sales representatives. The selling firm decides the compensation and benefits it will pay its sales representatives. |
•
|
To inform
yourself of any potential conflicts of interest, ask your sales representative before you buy how the selling firm and its sales representatives are being compensated and the amount of the compensation that each will receive if you buy the policy.
|
Legal Proceedings
Insurance companies have been the subject of increasing
regulatory, legislative and judicial scrutiny. Numerous state and federal regulatory agencies have commenced examinations and other inquiries of insurance companies regarding sales and marketing practices (including sales to older consumers and
disclosure practices), claims handling, and unclaimed property and escheatment practices and procedures. RiverSource Life of NY has cooperated and will continue to cooperate with the applicable regulators.
RiverSource Life of NY is involved in the normal course of
business in a number of other legal and arbitration proceedings concerning matters arising in connection with the conduct of its business activities. RiverSource Life of NY believes that it is not a party to, nor are any of its properties the
subject of, any pending legal, arbitration or regulatory investigation, examination or proceeding that is likely to have a material adverse effect on its financial condition, results of operations or liquidity. Notwithstanding the foregoing, it is
possible that the outcome of any such current or future legal, arbitration or regulatory proceeding could have a material impact on results of operations in any particular reporting period as the proceedings are resolved.
Uncertain economic conditions, heightened and sustained
volatility in the financial markets and significant financial reform legislation may increase the likelihood that clients and other persons or regulators may present or threaten legal claims or that regulators increase the scope or frequency of
examinations of RiverSource Life or the insurance industry generally.
Householding and Delivery of Certain Documents
With your prior consent, RiverSource Life of NY and its
affiliates may use and combine information concerning accounts owned by members of the same household and provide a single paper or electronic copy of certain documents to that household. This householding of documents may include prospectuses,
supplements, annual reports, semiannual reports and proxies. Your authorization remains in effect unless we are notified otherwise. If you wish to continue receiving multiple copies of these documents, you can opt out of householding by calling us
at 1.866.273.7429. Multiple mailings will resume within 30 days after we receive your opt out request.
How We Handle Policies Under Unclaimed Property Laws
Every state has unclaimed property laws which generally
declare insurance policies to be abandoned after a period of inactivity of one to five years from either 1) the policy’s maturity date (actual or deemed by statute) or 2) the date the death benefit is due and payable. Your policy’s
deemed maturity date is the date the youngest Insured’s Attained Insurance Age equals 120. If we determine that the death benefit has become payable, we will use our best efforts to locate you or your designated Beneficiaries. If we are
unable to locate a Beneficiary, the death benefit will be paid to the abandoned property division or unclaimed property office of the state in which the Beneficiary or you last resided, as shown in our books and records, or to our state of domicile.
Generally, this surrender of property to the state is commonly referred to as “escheatment”. To avoid escheatment, and ensure an effective process for your Beneficiaries, it is important that your personal address and Beneficiary
designations are up to date, including complete names, date of birth, current addresses and phone numbers, and taxpayer identification numbers for each Beneficiary. Updates to your Beneficiary designations should be sent to our Service Center.
Escheatment may also be required by law if a known Beneficiary
fails to demand or present an instrument or document to claim the death benefit in a timely manner, creating a presumption of abandonment. If your Beneficiary steps forward (with the proper documentation) to claim escheated death benefit Proceeds,
the state is obligated to pay any such Proceeds it is holding.
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 61
You can find our audited financial statements and the audited financial
statements of the divisions, which are comprised of Subaccounts, in the SAI. The SAI does not
include audited financial statements for divisions that are new (if any) and
have no activity as of the financial statement date.
62 RiverSource Survivorship
Variable Universal Life Insurance New York — Prospectus
Appendix A:
Funds Available Under the Contract
The following is a
list of funds available under the contract. More information about the funds is available in the prospectuses for the funds, which may be amended from time to time and can be found online at [ ]. You can also request this
information at no cost by calling [ ] or by sending an email request to [ ].
The current expenses and performance information below
reflects fee and expenses of the funds, but do not reflect the other fees and expenses that your contract may charge. Expenses would be higher and performance would be lower if these other charges were included. Each fund’s past performance is
not necessarily an indication of future performance.
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
long-term growth of capital |
AB
VPS Large Cap Growth Portfolio (Class A) AllianceBernstein L.P. |
0.67
|
35.48
|
20.45
|
17.43
|
The
Portfolio seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of its underlying index, the Alerian Midstream Energy Select Index (the "Index"). |
ALPS
| Alerian Energy Infrastructure Portfolio: Class I ALPS Advisors, Inc. |
0.95
|
-24.85
|
0.78
|
-
|
Seeks
long-term capital growth. Income is a secondary objective. |
American
Century VP Value, Class IAmerican Century Investment Management, Inc. |
0.73
|
0.98
|
8.83
|
9.73
|
Seeks
high total investment return. |
BlackRock
Global Allocation V.I. Fund (Class I) BlackRock Advisors, LLC |
0.76
|
21.00
|
9.42
|
6.86
|
Seeks
maximum total investment return through a combination of capital growth and current income. |
Columbia
Variable Portfolio - Balanced Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.76
|
17.77
|
10.78
|
10.29
|
Seeks
to provide shareholders with total return. |
Columbia
Variable Portfolio - Commodity Strategy Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70
|
-1.29
|
1.06
|
- |
Seeks
total return, consisting of long-term capital appreciation and current income. |
Columbia
Variable Portfolio - Contrarian Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.73
|
22.35
|
14.45
|
- |
Seeks
to provide shareholders with capital appreciation. |
Columbia
Variable Portfolio - Disciplined Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.66
|
14.12
|
13.03
|
13.19
|
Seeks
to provide shareholders with a high level of current income and, as a secondary objective, steady growth of capital. |
Columbia
Variable Portfolio - Dividend Opportunity Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74
|
1.15
|
8.99
|
8.54
|
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 63
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Non-diversified
fund that seeks to provide shareholders with high total return through current income and, secondarily, through capital appreciation. |
Columbia
Variable Portfolio - Emerging Markets Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74
|
7.43
|
6.92
|
- |
Seeks
to provide shareholders with long-term capital growth. |
Columbia
Variable Portfolio - Emerging Markets Fund (Class 1) Columbia Management Investment Advisers, LLC |
1.14
|
33.61
|
16.39
|
5.98
|
Seeks
to provide shareholders with maximum current income consistent with liquidity and stability of principal. |
Columbia
Variable Portfolio - Government Money Market Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.45
|
0.31
|
0.83
|
0.42
|
Seeks
to provide shareholders with high current income as its primary objective and, as its secondary objective, capital growth. |
Columbia
Variable Portfolio - High Yield Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.67
|
6.67
|
7.41
|
6.69
|
Seeks
to provide shareholders with a high total return through current income and capital appreciation. |
Columbia
Variable Portfolio - Income Opportunities Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.64
|
5.90
|
7.01
|
6.39
|
Seeks
to provide shareholders with a high level of current income while attempting to conserve the value of the investment for the longest period of time. |
Columbia
Variable Portfolio - Intermediate Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.49
|
12.58
|
6.07
|
4.79
|
Seeks
to provide shareholders with long-term capital growth. |
Columbia
Variable Portfolio - Large Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.73
|
34.74
|
17.94
|
15.76
|
Seeks
to provide shareholders with long-term capital appreciation. |
Columbia
Variable Portfolio - Large Cap Index Fund (Class 1)Columbia Management Investment Advisers, LLC |
0.26
|
18.03
|
14.86
|
13.51
|
Seeks
to provide shareholders with a level of current income consistent with preservation of capital. |
Columbia
Variable Portfolio - Limited Duration Credit Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.48
|
5.90
|
4.25
|
2.94
|
Seeks
total return, consisting of current income and capital appreciation. |
Columbia
Variable Portfolio - Long Government/Credit Bond Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.50
|
17.25
|
8.85
|
-
|
64 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
to provide shareholders with growth of capital. |
Columbia
Variable Portfolio - Mid Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.84
|
35.42
|
17.01
|
11.94
|
Seeks
to provide shareholders with capital appreciation. |
Columbia
Variable Portfolio - Overseas Core Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.84
|
9.12
|
6.47
|
5.23
|
Seeks
to provide shareholders with long-term growth of capital. |
Columbia
Variable Portfolio - Select Large Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.71
|
7.08
|
11.57
|
11.43
|
Seeks
to provide shareholders with long-term growth of capital. |
Columbia
Variable Portfolio - Select Mid Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.83
|
7.48
|
9.72
|
9.78
|
Seeks
to provide shareholders with long-term capital growth. |
Columbia
Variable Portfolio - Select Small Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.85
|
9.19
|
7.53
|
9.02
|
Seeks
total return, consisting of current income and capital appreciation. |
Columbia
Variable Portfolio - Strategic Income Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.69
|
6.82
|
6.40
|
5.28
|
Seeks
to provide shareholders with current income as its primary objective and, as its secondary objective, preservation of capital. |
Columbia
Variable Portfolio - U.S. Government Mortgage Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.46
|
5.09
|
3.93
|
2.81
|
Seeks
to provide shareholders with a high level of current income. |
CTIVP
® - American Century Diversified Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser;
American Century Investment Management, Inc., subadviser. |
0.49
|
8.55
|
5.09
|
4.12
|
Non-diversified
fund that seeks to provide shareholders with total return that exceeds the rate of inflation over the long term. |
CTIVP
® - BlackRock Global Inflation-Protected Securities Fund (Class 1) Columbia Management Investment Advisers,
LLC, adviser; BlackRock Financial Management, Inc., subadviser; BlackRock International Limited, sub-subadviser. |
0.60
|
9.37
|
5.59
|
4.48
|
Seeks
to provide shareholders with current income and capital appreciation. |
CTIVP
® - CenterSquare Real Estate Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; CenterSquare
Investment Management LLC, subadviser. |
0.79
|
-4.87
|
4.80
|
5.72
|
Seeks
to provide shareholders with long-term capital growth. |
CTIVP
® - Loomis Sayles Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Loomis, Sayles
& Company, L.P., subadviser. |
0.69
|
31.93
|
19.01
|
15.90
|
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 65
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
to provide shareholders with long-term capital growth. |
CTIVP
® - MFS® Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Massachusetts Financial Services Company, subadviser. |
0.71
|
3.57
|
10.17
|
10.87
|
Seeks
to provide shareholders with long-term capital growth. |
CTIVP
® - Morgan Stanley Advantage Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Morgan
Stanley Investment Management Inc., subadviser. |
0.68
|
75.91
|
25.81
|
17.90
|
Seeks
to provide shareholders with long-term growth of capital and income. |
CTIVP
® - T. Rowe Price Large Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; T. Rowe
Price Associates, Inc., subadviser. |
0.70
|
2.67
|
9.40
|
9.10
|
Seeks
to provide shareholders with total return through current income and capital appreciation. |
CTIVP
® - TCW Core Plus Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; TCW Investment
Management Company LLC, subadviser. |
0.49
|
8.88
|
4.69
|
3.42
|
Seeks
to provide shareholders with long-term growth of capital. |
CTIVP
® - Victory Sycamore Established Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser;
Wells Capital Management Incorporated, subadviser. |
0.79
|
8.05
|
11.77
|
11.35
|
Seeks
to provide shareholders with current income consistent with capital preservation. |
CTIVP
® - Wells Fargo Short Duration Government Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Wells Capital Management
Incorporated, subadviser. |
0.44
|
3.73
|
2.01
|
1.55
|
Seeks
to provide shareholders with long-term capital growth. |
CTIVP
® - Westfield Mid Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Westfield
Capital Management Company, L.P., subadviser. |
0.83
|
27.50
|
17.42
|
13.70
|
Seeks
capital appreciation. |
DWS
Alternative Asset Allocation VIP, Class A DWS Investment Management Americas Inc., adviser; RREEF America L.L.C., subadvisor. |
0.80
|
5.71
|
4.50
|
2.66
|
Seeks
long-term capital appreciation. Normally invests primarily in common stocks. Invests in securities of companies whose value FMR believes is not fully recognized by the public. Invests in either "growth" stocks or "value" stocks or both. The fund i
|
Fidelity
® VIP Contrafund® Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the fund's manager. |
0.61
|
30.57
|
16.19
|
13.52
|
66 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
long-term growth of capital. Normally invests primarily in common stocks. Normally invests at least 80% of assets in securities of companies with medium market capitalizations. May invest in companies with smaller or larger market capitalizations.
|
Fidelity
® VIP Mid Cap Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser) is the
fund's manager. |
0.62
|
18.19
|
11.07
|
9.50
|
Seeks
a high level of current income and may also seek capital appreciation. |
Fidelity
® VIP Strategic Income Portfolio Initial Class Fidelity Management & Research Company (FMR) (the Adviser)
is the fund's manager. |
0.67
|
7.52
|
6.27
|
4.83
|
Seeks
to maximize income while maintaining prospects for capital appreciation. Under normal market conditions, the fund invests in a diversified portfolio of equity and debt securities. |
Franklin
Income VIP Fund - Class 1 Franklin Advisers, Inc. |
0.47
|
0.97
|
7.22
|
6.25
|
Seeks
capital appreciation, with income as a secondary goal. Under normal market conditions, the fund invests primarily in U.S. and foreign equity securities that the investment manager believes are undervalued. |
Franklin
Mutual Shares VIP Fund - Class 1 Franklin Mutual Advisers, LLC |
0.73
|
-4.85
|
6.15
|
7.26
|
Seeks
long-term total return. Under normal market conditions, the fund invests at least 80% of its net assets in investments of small capitalization companies. |
Franklin
Small Cap Value VIP Fund - Class 1 Franklin Mutual Advisers, LLC |
0.68
|
5.41
|
11.05
|
9.48
|
Seeks
total return with a low to moderate correlation to traditional financial market indices. |
Invesco
V.I. Balanced-Risk Allocation Fund, Series I Shares Invesco Advisers, Inc. |
0.80
|
10.22
|
7.87
|
6.39
|
Seeks
capital appreciation. |
Invesco
V.I. Global Fund, Series I Shares (previously Invesco Oppenheimer V.I. Global Fund, Series I Shares) Invesco Advisers, Inc. |
0.77
|
27.64
|
14.84
|
11.64
|
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 67
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
total return. |
Invesco
V.I. Global Strategic Income Fund, Series I Shares (previously Invesco Oppenheimer V.I. Global Strategic Income Fund, Series I Shares) Invesco Advisers, Inc. |
0.91
|
3.40
|
4.40
|
3.61
|
Seeks
capital appreciation. |
Invesco
V.I. Main Street Small Cap Fund®, Series I Shares (previously Invesco Oppenheimer V.I. Main Street Small Cap Fund®, Series I Shares) Invesco Advisers, Inc. |
0.80
|
19.93
|
12.88
|
12.13
|
Seeks
long-term capital growth, consistent with preservation of capital and balanced by current income. |
Janus
Henderson Balanced Portfolio: Institutional Shares Janus Capital Management LLC |
0.62
|
14.31
|
11.81
|
10.23
|
Seeks
to obtain maximum total return, consistent with preservation of capital. |
Janus
Henderson Flexible Bond Portfolio: Institutional Shares Janus Capital Management LLC |
0.58
|
10.48
|
4.94
|
4.45
|
Seeks
long-term growth of capital. |
Janus
Henderson Research Portfolio: Institutional Shares Janus Capital Management LLC |
0.60
|
32.95
|
17.67
|
14.67
|
Seeks
long-term capital appreciation. |
Lazard
Retirement Global Dynamic Multi-Asset Portfolio - Investor Shares Lazard Asset Management, LLC |
0.90
|
0.96
|
6.71
|
- |
Seeks
total return. |
MFS
® Utilities Series - Initial Class Massachusetts Financial Services Company |
0.79
|
5.90
|
11.37
|
9.20
|
The
Fund seeks long-term capital growth by investing primarily in common stocks and other equity securities. |
Morgan
Stanley VIF Discovery Portfolio, Class I Shares (not available to new investors on or after April 5, 2021) |
0.95
|
152.30
|
37.70
|
20.76
|
Seeks
long-term growth of capital by investing primarily in securities of companies that meet the Fund's environmental, social and governance (ESG) criteria. |
Neuberger
Berman AMT Sustainable Equity Portfolio (Class I) Neuberger Berman Investment Advisers LLC |
0.92
|
19.56
|
13.05
|
11.62
|
Seeks
maximum real return, consistent with preservation of real capital and prudent investment management. |
PIMCO
VIT All Asset Portfolio, Institutional Class Pacific Investment Management Company LLC |
1.13
|
8.17
|
8.10
|
4.80
|
Seeks
maximum total return, consistent with preservation of capital and prudent investment management. |
PIMCO
VIT Total Return Portfolio, Institutional Class Pacific Investment Management Company LLC (PIMCO) |
0.54
|
8.81
|
4.91
|
4.09
|
68 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
high current income, consistent with preservation of capital, with capital appreciation as a secondary consideration. Under normal market conditions, the fund invests at least 80% of its net assets in debt securities of any maturity. |
Templeton
Global Bond VIP Fund - Class 1 Franklin Advisers, Inc. |
0.49
|
-5.07
|
0.91
|
1.81
|
Seeks
to provide a high level of total return that is consistent with an aggressive level of risk. |
Variable
Portfolio - Aggressive Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.80
|
15.30
|
10.09
|
8.46
|
Seeks
to provide a high level of total return that is consistent with a conservative level of risk. |
Variable
Portfolio - Conservative Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.65
|
9.55
|
5.58
|
4.55
|
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - Managed Volatility Conservative Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70
|
8.35
|
5.66
|
- |
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - Managed Volatility Conservative Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.74
|
9.35
|
6.54
|
-
|
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - Managed Volatility Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.77
|
11.56
|
8.18
|
- |
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - Managed Volatility Moderate Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.72
|
10.63
|
7.47
|
- |
Seeks
to provide a high level of total return that is consistent with a moderate level of risk. |
Variable
Portfolio - Moderate Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.71
|
13.12
|
8.05
|
6.66
|
Seeks
to provide a high level of total return that is consistent with a moderately aggressive level of risk. |
Variable
Portfolio - Moderately Aggressive Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.77
|
14.26
|
9.09
|
7.55
|
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 69
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Seeks
to provide a high level of total return that is consistent with a moderately conservative level of risk. |
Variable
Portfolio - Moderately Conservative Portfolio (Class 1) Columbia Management Investment Advisers, LLC |
0.68
|
11.28
|
6.79
|
5.59
|
Seeks
to provide shareholders with a high level of current income while conserving the value of the investment for the longest period of time. |
Variable
Portfolio - Partners Core Bond Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; J.P. Morgan Investment Management Inc. and Wells Capital Management Incorporated, subadvisers. |
0.48
|
8.27
|
4.51
|
3.80
|
Seeks
to provide shareholders with long-term capital growth. |
Variable
Portfolio - Partners Core Equity Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; J.P. Morgan Investment Management Inc. and T. Rowe Price Associates, Inc., subadvisers. |
0.68
|
17.02
|
12.50
|
10.81
|
Seeks
to provide shareholders with long-term growth of capital. |
Variable
Portfolio - Partners International Core Equity Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Schroder Investment Management North America Inc. (SIMNA Inc.), together with its affiliate,
Schroder Investment Management North America Limited (SIMNA Ltd. and together with SIMNA Inc., Schroders), subadviser. |
0.80
|
11.16
|
5.50
|
4.54
|
Seeks
to provide shareholders with long-term capital growth. |
Variable
Portfolio - Partners International Growth Fund (Class 1) Columbia Management Investment Advisers LLC, adviser; William Blair Investment Management, LLC and Walter Scott & Partners Limited,
subadvisers. |
0.87
|
22.62
|
9.05
|
6.84
|
Seeks
to provide shareholders with long-term capital growth. |
Variable
Portfolio - Partners International Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Pzena Investment Management, LLC and Thompson, Siegel & Walmsley LLC, subadvisers. |
0.84
|
-3.82
|
4.18
|
1.76
|
Seeks
to provide shareholders with long-term capital growth. |
Variable
Portfolio - Partners Small Cap Growth Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Scout Investments, Inc. and Wells Capital Management Incorporated, subadvisers. |
0.87
|
38.77
|
15.24
|
11.58
|
Seeks
to provide shareholders with long-term capital appreciation. |
Variable
Portfolio - Partners Small Cap Value Fund (Class 1) Columbia Management Investment Advisers, LLC, adviser; Segall Bryant & Hamill, LLC and William Blair Investment Management, LLC (William Blair), together
with Investment Counselors of Maryland, LLC (ICM and together with William Blair, William Blair Subadvisers), subadvisers. |
0.88
|
4.27
|
7.79
|
7.08
|
70 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
Investment
Objective |
Fund
Adviser/Sub-Adviser |
Current
Expenses Ratio [NET] (%) |
Average
Annual Total Returns (as of 12/31/2020) |
1
Year |
5
Year |
10
Year |
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - U.S. Flexible Conservative Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70
|
6.18
|
- |
-
|
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - U.S. Flexible Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70
|
5.07
|
- |
- |
Pursues
total return while seeking to manage the Fund's exposure to equity market volatility. |
Variable
Portfolio - U.S. Flexible Moderate Growth Fund (Class 1) Columbia Management Investment Advisers, LLC |
0.70
|
5.74
|
- |
-
|
Seeks
long-term capital appreciation. |
Wells
Fargo VT Opportunity Fund - Class 1 Wells Fargo Funds Management, LLC, adviser; Wells Capital Management Inc., sub-adviser. |
0.75
|
21.32
|
15.12
|
12.05
|
Seeks
long-term capital appreciation. |
Wells
Fargo VT Small Cap Growth Fund - Class 1 Wells Fargo Funds Management, LLC, adviser; Wells Capital Management Inc., sub-adviser. |
0.93
|
58.09
|
22.35
|
15.11
|
Seeks
to maximize total return. |
Western
Asset Variable Global High Yield Bond Portfolio - Class I Legg Mason Partners Fund Adviser, LLC; Western Asset Management Company, LLC, Western Asset Management Company Limited & Western Asset Management
Pte. Ltd., sub-advisors. |
0.84
|
7.32
|
8.18
|
5.82
|
RiverSource Survivorship Variable Universal Life Insurance New
York — Prospectus 71
Appendix B:
S&P Disclaimer
The S&P 500 Index (the
“Index”) is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by RiverSource Life Insurance Co. of New York (“RiverSource Life of NY”). Standard &
Poor’s® and S&P® are registered
trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by RiverSource Life of NY. It is not possible to invest directly in an index. RiverSource Life of
NY’s indexed accounts (collectively, the “Indexed Accounts”) are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or any of their respective affiliates (collectively, “S&P Dow Jones Indices”).
S&P Dow Jones Indices makes no representation or warranty, express or implied, to the owners of an Indexed Account or any member of the public regarding the advisability of investing in securities generally or in Indexed Accounts particularly or
the ability of the S&P 500 Index to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices’ only relationship to RiverSource Life of NY with respect to
the S&P 500 Index is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500 Index is determined, composed and calculated by S&P Dow Jones Indices
without regard to RiverSource Life of NY or the Indexed Accounts. S&P Dow Jones Indices has no obligation to take the needs of RiverSource Life of NY or the owners of the Index Accounts into consideration in determining, composing or calculating
the S&P 500 Index. S&P Dow Jones Indices is not responsible for and has not participated in the determination of the prices, and amount of the Indexed Accounts or the timing of the issuance or sale of the Index Accounts or in the
determination or calculation of the equation by which the Indexed Accounts are to be converted into cash, surrendered or redeemed, as the case may be. S&P Dow Jones Indices has no obligation or liability in connection with the administration,
marketing or trading of the Indexed Accounts. There is no assurance that investment products based on the S&P 500 Index will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an
investment or tax advisor. A tax advisor should be consulted to evaluate the impact of any tax-exempt securities on portfolios and the tax consequences of making any particular investment decision. Inclusion of a security within an index is
not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, nor is it considered to be investment advice.
S&P DOW JONES INDICES DOES NOT GUARANTEE THE ADEQUACY,
ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500 INDEX OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P
DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY RIVERSOURCE LIFE OF NY, OWNERS OF THE INDEXED ACCOUNTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR
GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND
RIVERSOURCE LIFE OF NY, OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.
72 RiverSource Survivorship Variable
Universal Life Insurance New York — Prospectus
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Additional
information about RiverSource of New York Account 8 (Registrant) is included in the SAI. The SAI and personal illustrations of death benefits, Cash Surrender Values, and Policy Values are available, without charge, upon request. To request the SAI
or a personal illustration, or for other inquiries about the policies, contact your sales representative or RiverSource Life Insurance Co. of New York at the telephone number and address listed below. The SAI dated the same date as this prospectus,
is incorporated by reference into this prospectus.
Reports and other information about the Registrant are available on the EDGAR
Database on the SEC’s Internet site at www.sec.gov. Copies of this information may be obtained, after paying a duplicating fee, by electronic request at the following E-mail address: publicinfo@sec.gov, or by writing to the Public Reference
Section of the SEC, 100 F St. N.E., Washington, D.C. 20549-8629.
Investment Company Act File # 811-5213
EDGAR Contract Identifier - To be filled by Amendment
RiverSource Distributors, Inc. (Distributor), Member FINRA.
Issued by RiverSource Life Insurance Co. of New York, Albany, New York. Affiliated with Ameriprise Financial Services, LLC.
© 2008-2021 RiverSource Life Insurance Company. All rights
reserved.
RiverSource Life Insurance Co. of New York
70500
Ameriprise Financial Center
Minneapolis, MN 55474
1-800-541-2251
S-6770 A (12/21)
PART B: STATEMENT OF ADDITIONAL
INFORMATION
STATEMENT OF ADDITIONAL INFORMATION
FOR
RIVERSOURCE® SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE (SVUL NY)
___________, 2021
Issued by: RiverSource Life Insurance Co. of New York
20 Madison Avenue Extension
Albany, NY 12203
Telephone: 1-800-541-2251
(Home
Office)
Website address: riversource.com/lifeinsurance
RiverSource of New York Account 8
RiverSource of New York Account 8 is a separate account of RiverSource Life Insurance Co. of New York (RiverSource Life of NY). 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 above.
S-6337 CH (5/21)
Table of Contents
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2 |
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∎ |
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RIVERSOURCE OF NEW YORK ACCOUNT 8 |
Information about RiverSource Life of NY
We are a stock life insurance company organized in 1972 under the laws of the state of New York and are located at 20 Madison Avenue Extension, Albany, NY
12203. Our mailing address is: 70500 Ameriprise Financial Center, Minneapolis, MN 55474.
We conduct a conventional life insurance business in the state of
New York. Our primary products currently include fixed and variable annuity contracts and life insurance policies.
OWNERSHIP
RiverSource Life of NY, a New York corporation is a wholly-owned subsidiary of RiverSource Life Insurance Company, a Minnesota Corporation which is a
wholly-owned subsidiary of Ameriprise Financial, Inc. (Ameriprise Financial). The Ameriprise Financial family of companies offers not only insurance and annuities, but also mutual funds, investment certificates and a broad range of financial
management services.
STATE REGULATION
We are subject to the
laws of New York governing insurance companies and to regulation by the New York State Department of Financial Services (the Department). We file an annual statement in a prescribed form with the Department. Our books and accounts are subject to
review by the Department at all times and a full examination of our operations is conducted periodically.
REPORTS
At least once a year we will mail to you, at your last known address of record, a report containing all information required by law or regulation, including a
statement showing the current policy value.
RATING AGENCIES
Generally, RiverSource Life of NY does not receive individual ratings from rating agencies but receives the same ratings as its parent, RiverSource Life
Insurance Company. Rating agencies evaluate the creditworthiness and claims-paying ability of insurance companies on a number of different factors. These ratings reflect each agencys estimation of our ability to meet our contractual
obligations such as 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 rating given to us, see Investor Relations Financial Information Credit Ratings on our website
at ameriprise.com or contact your sales representative. You also may view our current ratings by visiting the agency websites directly at:
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A.M. Best |
|
www.ambest.com |
Moodys |
|
www.moodys.com |
Standard & Poors |
|
www.standardandpoors.com |
A.M. Best Rates insurance companies for their financial strength.
Moodys Rates insurance companies for their financial strength.
Standard & Poors Rates insurance companies for their financial strength.
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RIVERSOURCE OF NEW YORK ACCOUNT 8 |
|
∎ |
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3 |
Principal Underwriter
RiverSource Distributors, Inc. (RiverSource Distributors), our affiliate, serves as principal underwriter for the policy, which is offered on a continuous
basis. Its offices are located at 70100 Ameriprise Financial Center, Minneapolis, MN 55474. RiverSource Distributors is registered with the Securities and Exchange Commission under the Securities Act of 1934 as a broker dealer and is a member of the
Financial Industry Regulatory Authority (FINRA). The policies are offered to the public through certain securities broker-dealers that have entered into sales agreements with us and RiverSource Distributors and whose personnel are legally authorized
to sell life insurance products. RiverSource Distributors is a wholly-owned subsidiary of Ameriprise Financial, Inc.
The aggregate dollar amount of
underwriting commissions paid to RiverSource Distributors by RiverSource Life of NY for the variable accounts in 2020 was $24,231,296, in 2019 was $26,589,422 and in 2018 was $27,593,528. RiverSource Distributors retains no underwriting commissions
from the sale of the policy.
Non-Principal Risks of Investing in the Policy
Fund of Funds Risk. Funds that are funds of funds (or feeder funds) invest substantially all of their assets in other funds and
will therefore bear a pro-rata share of fees and expenses incurred by both funds. This will reduce your investment return.
Money Market Fund Sub-Account Delay of Payment Risk. If, pursuant to SEC rules, a Fund that is a money market
fund suspends payment of redemption proceeds in connection with a liquidation of such Fund, we will delay payment of any transfer, partial withdrawal, full surrender, or death benefit from the corresponding Subaccount until the Fund is liquidated.
Mixed and Shared Funding Risk. Fund shares may be sold to our insurance company affiliates or other unaffiliated insurance companies to serve as
an underlying investment for variable annuity contracts and variable life insurance policies, pursuant to a practice known as mixed and shared funding. As a result, there is a possibility that a material conflict may arise between the interests of
Owners, and other Owners investing in these Funds. If a material conflict arises, we will consider what action may be appropriate, including removing the Fund from the Variable Account or replacing the Fund with another underlying Fund.
Limitations on Use of the Policy
If mandated by
applicable law, including, but not limited to, federal anti-money laundering laws, we may be required to reject a premium payment. We may also be required to block an Owners access to Policy 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 government authority or a court of competent jurisdiction.
Business Continuity/Disaster Recovery
Disruptive events,
including natural or man-made disasters and public health crises may adversely affect our ability to conduct business, including if our employees or the employees of intermediaries or service providers are
unable to perform their responsibilities as a result of any such event. Such disruptions to our business operations could interfere with processing of transactions (including the issuance of policies). Also, disruptions may interfere with our
ability to receive, pick up and process mail and messages, impact our ability to calculate values, or cause other operational or system issues. Furthermore, these disruptions may persist even if our employees or the employees of intermediaries or
service providers are able to work remotely. These events may also impact the issuers of securities in which the Funds invest, which may cause the Funds to lose value. There can be no assurance that RiverSource Life, the Funds or our service
providers will avoid losses affecting your policy due to a disaster or other catastrophe.
Service Providers
Our Service Center performs certain administrative services on the contracts and policies we issue. The address and telephone number of our Service Center are
listed on the first page of the prospectus.
We also have entered into agreements with certain entities to provide the identified services in connection
with the contracts and policies we issue. The entities engaged by RiverSource Life of NY may change over time. Entities that provided a significant amount of services to RiverSource Life of NY, the compensation paid, and the basis for remuneration
are listed below.
Ameriprise Financial, Inc. and RiverSource Life Insurance Company are affiliated with RiverSource Life of NY.
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4 |
|
∎ |
|
RIVERSOURCE OF NEW YORK ACCOUNT 8 |
|
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|
|
|
Name of Service Provider |
|
Services Provided |
|
Principal Business Address |
|
Basis for Remuneration |
Ameriprise Financial, Inc. (AFI) |
|
Business affairs management and administrative support related to new business and servicing of existing contracts and policies |
|
707 Second Avenue South Minneapolis MN 55402
USA |
|
Expense allocation based primarily on policies in force, secondarily on policies issued or cash sales (for acquisition expenses). |
RiverSource Life Insurance Company |
|
Business affairs management and administrative support related to new business and servicing of existing contracts and policies |
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707 Second Avenue South Minneapolis MN 55402 USA |
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Expense allocation based primarily on policies in force, secondarily on policies issued or cash sales (for acquisition expenses). |
The aggregate dollar amount paid to AFI by RiverSource Life of NY for the services provided in 2020 was $1,057,563, in 2019 was
$952,039 and in 2018 was $943,444.
The aggregate dollar amount paid to RiverSource Life Insurance Company by RiverSource Life of NY for the services
provided in 2020 was $6,125,075, in 2019 was $6,439,319 and in 2018 was $6,445,669.
Custodian
RiverSource Life of NY is the custodian of the assets of RiverSource of New York Account 8. RiverSource Life of NY holds these assets for safekeeping,
maintains records and accounts relating to the variable account including purchase and redemption transactions, and is responsible for administration of the policies. RiverSource Life of NYs principal offices are located at 20 Madison Avenue
Extension, Albany NY 12203.
The Variable Account
We established the variable account on Sept. 12, 1985, under New York law. It is registered as a single unit investment trust under the Investment Company Act
of 1940. This registration does not involve any SEC supervision of the variable accounts management or investment practices or policies.
The
variable account meets the definition of a separate account under federal securities laws. Other variable life insurance policies that are not described in this statement of additional information also invest in subaccounts of the variable account.
Additional Information about the Operation of the Policies
TO BE FILED BY AMENDMENT.
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RIVERSOURCE OF NEW YORK ACCOUNT 8 |
|
∎ |
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5 |
Independent Registered Public Accounting Firm
TO BE FILED BY AMENDMENT.
FINANCIAL
STATEMENTS
TO BE FILED BY AMENDMET.
S-6337 CH (5/21)
PART C: OTHER INFORMATION
Item 30. Exhibits—Except as noted below,
all required exhibits have been previously filed and are incorporated by reference from prior Registration Statements of the Depositor.
(a)(1)
|
Copy
of Resolution of Board of Directors of IDS Life of New York authorizing the Trust, adopted September 12, 1985, filed electronically as exhibit (a)(1) to Post-Effective Amendment No. 3 to Registration Statement No. 333-227507 is incorporated herein by
reference. |
(a)(2)
|
Copy of Resolution of the Board of Directors of IDS Life Insurance Company of New York adopting and approving Agreement and Plan of Merger band subsequent name
changes, dated Aug. 29, 2006, filed electronically as Exhibit 1.11 to Post-Effective Amendment No. 22 to Registration Statement No. 333-91691, is incorporated herein by reference. |
(b)
|
Not
applicable. |
(c)
|
Form of Principal Underwriter Agreement for RiverSource Life Insurance Co. of New York for Variable Annuities and Variable Life Insurance filed electronically
as Exhibit 3.1 to the Initial Registration Statement on Form N-4 for RiverSource of New York Variable Annuity Account 2 (previously ACL Variable Annuity Account 2), RiverSource Endeavor Select (SM) Variable Annuity, RiverSource Innovations (SM)
Select Variable Annuity and RiverSource Innovations (SM) Variable Annuity, on or about Jan. 2, 2007, is incorporated herein by reference. |
(d)(1)
|
Copy of Flexible Premium Survivorship Variable Adjustable Life with Index-Linked Interest Option(s) Life Insurance Policy (SVUL) is filed electronically herewith. |
(d)(2)
|
Copy of Overloan Protection Benefit filed electronically as Exhibit (d)(8) to Initial Registration Statement on Form N-6 on or about August 13, 2012 is
incorporated herein by reference. |
(d)(3)
|
Copy of Indexed Account Endorsement filed electronically as Exhibit (d)(11) to Post-Effective Amendment No. 7 to Registration Statement No. 333-183262
is incorporated herein by reference. |
(d)(4)
|
Copy of Accounting Value Increase Rider filed electronically as Exhibit (d)(12) to Post-Effective Amendment No. 6 to Registration Statement No. 333-183262
is incorporated herein by reference. |
(d)(5)
|
Copy of Death Benefit Option 3 Endorsement filed electronically as Exhibit (d)(13) to Post-Effective Amendment No. 6 to Registration Statement No. 333-183262
is incorporated herein by reference. |
(d)(6)
|
Copy of Policy Split Option Rider is filed electronically herewith. |
(d)(7)
|
Copy of Four-Year Term Insurance Rider is filed electronically herewith. |
(e)(1)
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Form of Life and Disability Income Insurance Application is filed electronically herewith. |
(e)(2)
|
Form of Distribution of Policy Value Endorsement is filed electronically as Exhibit (e)(3) to Post-Effective Amendment No. 2 to Registration Statement
No. 333-227507 in incorporated herein by reference. |
(f)(1)
|
Copy of Charter of RiverSource Life Insurance Co. of New York dated Dec. 31, 2006, filed electronically as Exhibit 27(f)(1) to Post-Effective Amendment
No. 22 to Registration Statement 333-44644 is incorporated herein by reference. |
(f)(2)
|
Copy of Amended and Restated By-Laws of RiverSource Life Insurance Co. of New York filed electronically as Exhibit 27(f)(2) to Post-Effective Amendment No.
22 to Registration Statement No. 333-44644 is incorporated herein by reference. |
(g)(1)
|
To
be filed by Amendment. |
(h)(1)
|
Copy of Amended and Restated Participation Agreement dated August 1, 2006, among American Centurion Life Assurance Company, IDS Life Insurance Company of New
York, Ameriprise Financial Services, Inc., AllianceBernstein L.P. and AllianceBernstein Investments, Inc. filed electronically as Exhibit(h) (2) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by
reference. |
(h)(2)
|
Copy of Amended and Restated Fund Participation Agreement dated June 1, 2006, by and among American Centurion Life Assurance Company, American Enterprise Life
Insurance Company, American Partners Life Insurance Company, IDS Life Insurance Company, IDS Life Insurance Company of New York, Ameriprise Financial Services, Inc. and American Century Investment Services, Inc. filed electronically as Exhibit
27(h)(3) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by reference. |
(h)(3)
|
Copy of Amended and Restated Fund Participation Agreement dated January 1, 2007, among Variable Insurance Products Funds, Fidelity Distributors
Corporation and RiverSource Life Insurance Co. of New York filed electronically as Exhibit 8.16 to RiverSource of New York Variable Annuity Account 2’s Post-Effective Amendment No. 3 to Registration Statement No. 333-139764 on or about April
28, 2008, is incorporated herein by reference. |
(h)(4)
|
Copy
of Amended and Restated Participation Agreement dated August 1, 2005, by and between Franklin Templeton Variable Insurance Products Trust, Franklin/Templeton Distributors, Inc., American Centurion Life Assurance Company, American Enterprise Life Insurance
Company, IDS Life Insurance Company, IDS Life Insurance Company of New York and Ameriprise Financial Services Inc. (formerly American Express Financial Advisors Inc.) filed electronically as Exhibit (h)(8) to Post-Effective Amendment No. 21 to Registration
Statement No. 333-44644 is incorporated herein by reference. |
(h)(5)
|
Copy of Janus Aspen Series Amended and Restated Fund Participation Agreement dated September 1, 2006, by and among American Centurion Life Assurance Company,
IDS Life Insurance Company of New York and Janus Aspen Series filed electronically as Exhibit 27(h)(9) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by reference. |
(h)(6)
|
Copy of Participation Agreement Among MFS Variable Insurance Trust, American Centurion Life Assurance Company, IDS Life Insurance Company of New York and Massachusetts
Financial Services Company, dated June 15, 2006, filed electronically as Exhibit (h)(10) to Post-Effective Amendment No. 23 to Registration Statement No. 333-44644 is incorporated herein by reference. |
(h)(7)
|
Copy of Fund Participation Agreement dated April 2, 2007, among RiverSource Life Insurance co. of New York, Wanger Advisors Trust, Columbia Wanger
Asset Management, L.P. and Columbia Management Distributors, Inc. filed electronically as Exhibit 8.22 to RiverSource of New York Variable Annuity Account 2’s Post-Effective Amendment No. 3 to Registration Statement No.333-139764 on or about
April 28, 2008, is incorporated herein by reference. |
(h)(8)
|
Copy of Fund Participation Agreement dated May 1, 2006, among American Centurion Life Assurance Company, IDS Life Insurance Company of New York, Columbia Funds
Variable Insurance Trust I, Columbia Management Advisors, LLC and Columbia Management Distributors, Inc. filed electronically as Exhibit (h) (13) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by
reference. |
(h)(9)
|
Copy of Participation Agreement dated January 1, 2007, by and among, Wells Fargo Variable Trust, RiverSource Life Insurance Co. of New York, RiverSource Distributors,
Inc. and Wells Fargo Funds Distributor, LLC filed electronically as Exhibit(h)(16) to Post-Effective Amendment No. 23 to Registration Statement No. 333-44644 is incorporated herein by reference. |
(h)(10)
|
Copy of Amended and Restated Fund Participation Agreement dated March 30, 2007, among Oppenheimer Variable Account funds, Oppenheimer Funds, Inc.
and RiverSource Life Insurance Co. of New York filed electronically as Exhibit 8.4 to RiverSource of New York Variable Annuity Account 2’s Post-Effective Amendment No. 3 to Registration Statement No. 333-139764 on or about April 28, 2008, is
incorporated herein by reference. |
(h)(11)
|
Copy of Participation Agreement dated March 1, 2006, among IDS Life Insurance Company of New York, PIMCO Variable Insurance Trust and Allianz Global Investors
Distributors LLC filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 22 to Registration Statement No. 333-91691 is incorporated herein by reference. |
(h)(12)
|
Copy of Participation Agreement dated January 1, 2007, by and among RiverSource Life Insurance Company, RiverSource Life Insurance Co. of New York and RiverSource
Distributors, Inc. filed electronically as Exhibit 8.8 to Post-Effective Amendment No. 1 to Registration Statement No. 333-139761 is incorporated herein by reference. |
(h)(13)
|
Copy of Fund Participation Agreement dated April 30, 2012 by and among RiverSource Life Insurance Co. of New York, BlackRock Variable Series Funds,
Inc. and BlackRock Investments, LLC filed electronically as Exhibit 8.14 to RiverSource of New York Variable Annuity Account’s Post-Effective Amendment No. 1 to Registration Statement No. 333-179335 is incorporated herein by
reference. |
(h)(14)
|
Copy of Participation Agreement dated April 30, 2012 by and among RiverSource Life Insurance Co. of New York, RiverSource Distributors, Inc., DWS Variable
Series I, DWS Variable Series II, DWS Investments VIT Funds, DWS Investments Distributors, Inc. and Deutsche Investment Management Americas Inc. filed electronically as Exhibit 8.15 to RiverSource of New York Variable Annuity Account’s
Post-Effective Amendment No. 1 to Registration Statement No. 333-179335 is incorporated herein by reference. |
(h)(15)
|
Copy of Fund Participation Agreement dated March 2, 2006, by and between Neuberger Berman Advisers Management Trust, Neuberger Berman Management, Inc.
and IDS Life Insurance Company filed electronically as Exhibit 8.17 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is incorporated herein by reference. |
(h)(16)
|
Copy of Fund Participation Agreement dated April 30, 2013, by and among ALPS Variable Investment Trust, ALPS Portfolio Solutions Distributor, Inc.,
and RiverSource Life Insurance Co. of New York filed electronically as Exhibit 8.16 to RiverSource of New York Variable Annuity Account’s Post-Effective Amendment No.4 to Registration Statement No. 333-179335 is incorporated herein by
reference. |
(h)(17)
|
Copy
of Amended and Restated Participation Agreement dated September 1, 2006, by and among IDS Life Insurance Company of New York, Legg Mason Partners Variable Portfolios I, Inc. (formerly Salomon Brothers Variable Series Fund, Inc.), Legg Mason Partners Variable
Portfolios II, Inc. (formerly Greenwich Street Series Fund, formerly Smith Barney Series Fund, formerly Smith Barney Shearson Series Fund, formerly Shearson Series Fund), Legg Mason Partners Variable Portfolios III, Inc. (formerly Travelers Series Fund
Inc., formerly Smith BarneyTravelers Series Fund Inc.) and Legg Mason Investor Services, LLC filed electronically as Exhibit 8.14 to Post-Effective Amendment No.22 to Registration Statement
No. 333-91691 is incorporated by reference. |
(h)(18)
|
Copy of Amended and Restated Participation Agreement dated April 17,2006, by and among AIM Variable Insurance Funds, AIM Distributors, Inc. American Centurion
Life Assurance Company, IDS Life Insurance Company of New York, and Ameriprise Financial Services, Inc. filed electronically as Exhibit(h)(1) to Post-Effective Amendment No. 22 to Registration Statement No. 333-44644 is incorporated herein by
reference. |
(h)(19)
|
Copy of Amended and Restated Participation Agreement dated May 1, 2006, among The Universal Institutional Funds, Inc., Morgan Stanley Investment
Management Inc., Morgan Stanley Distribution, Inc., American Enterprise Life Insurance Company and IDS Life Insurance Company filed electronically as Exhibit 8.24 to Post-Effective Amendment No. 41 to Registration Statement No. 333-79311 is
incorporated herein by reference. |
(h)(20)
|
Copy of Participation Agreement dated Jan. 1, 2007, by and among RiverSource Life Insurance Co. of New York, RiverSource Distributors, Inc. and Lazard
Asset Management Securities LLC and Lazard Retirement Series, Inc. filed electronically as Exhibit 8.27 to Registrant's Post-Effective Amendment No. 24 to Registration Statement No.333-91691 is incorporated herein by reference.
|
(i)
|
Not
applicable. |
(j)
|
Not
applicable. |
(k)
|
Consent and Opinion of Counsel is filed electronically herewith. |
(l)
|
Not
applicable. |
(m)
|
Not
applicable. |
(n)
|
To
be filed by Amendment |
(o)
|
Not
applicable. |
(p)
|
Not
applicable. |
(q)
|
RiverSource Life Insurance Co. of New York’s Description of Transfer and Redemption Procedures and Method of Conversion to Fixed Benefit Policies
filed electronically as Exhibit (q) to Post-Effective Amendment No. 25 to Registration Statement No. 333-42257 is incorporated herein by reference. |
(r)
|
Form of Initial Summary Prospectus is filed electronically herewith. |
(s)
|
Power of Attorney to sign Amendments to this Registration Statement, dated March 17, 2021 filed electronically as Exhibit 13 to RiverSource of New York
Variable Annuity Account’s Post-Effective Amendment No. 2 to Registration Statement File No. 333-230375, is incorporated herein by reference. |
Item 31. Directors and Officers of the
Depositor
Directors and Officers of the
Depositor RiverSource Life Insurance Co. of New York
Name
|
|
Principal
Business Address* |
|
Positions
and Offices with Depositor |
Gumer
C. Alvero |
|
1765
Ameriprise Financial Center Minneapolis, MN 55474 |
|
Chairman
of the Board, President and Chief Executive Officer |
Michael
J. Pelzel |
|
|
|
Senior
Vice President—Corporate Tax |
Stephen
P. Blaske |
|
|
|
Senior
Vice President and Chief Actuary |
Mark
Gorham |
|
|
|
Director
and Vice President - Insurance Product Development |
Karen
M. Bohn |
|
6620
Iroquois Trail Edina, MN 55439 |
|
Director
|
Ronald
L. Guzior |
|
Sax/BST,
LLC 26 Computer Drive West Albany, NY 12205 |
|
Director
|
Shweta
Jhanji |
|
|
|
Senior
Vice President and Treasurer |
Name
|
|
Principal
Business Address* |
|
Positions
and Offices with Depositor |
Paula
J. Minella |
|
|
|
Secretary
|
Gregg
L. Ewing |
|
|
|
Vice
President, Chief Financial Officer and Controller |
Lynn
Abbott |
|
|
|
Vice
President – National Sales Manager and Fund Management |
Brian
E. Hartert |
|
|
|
Director
|
*
|
Unless
otherwise noted, the business address is 70100 Ameriprise Financial Center, Minneapolis, MN 55474 |
Item 32. Persons Controlled by or Under Common
Control with the Depositor or the Registrant
SUBSIDIARIES AND AFFILIATES OF AMERIPRISE
FINANCIAL, INC.
Parent
Company/Subsidiary Name |
|
Jurisdiction
|
Ameriprise
Financial, Inc.* |
|
DE |
Ameriprise
Advisor Capital, LLC |
|
DE |
Ameriprise
Advisor Financing, LLC |
|
DE |
Ameriprise
Bank, FSB |
|
Federal |
Ameriprise
Capital Trust I |
|
DE |
Ameriprise
Capital Trust II |
|
DE |
Ameriprise
Capital Trust III |
|
DE |
Ameriprise
Capital Trust IV |
|
DE |
Ameriprise
Captive Insurance Company |
|
VT |
Ameriprise
Certificate Company |
|
DE |
Investors
Syndicate Development Corporation |
|
NV |
Ameriprise
Holdings, Inc. |
|
DE |
Ameriprise
India LLP1 |
|
India |
Ameriprise
India Partner, LLC |
|
DE |
Ameriprise
Trust Company |
|
MN |
AMPF
Holding, LLC |
|
MI |
American
Enterprise Investment Services, Inc.2 |
|
MN |
Ameriprise
Financial Services, LLC2 |
|
DE |
AMPF
Property Corporation |
|
MI |
Investment
Professionals, Inc.2 |
|
TX |
Columbia
Management Investment Advisers, LLC |
|
MN |
Advisory
Capital Strategies Group Inc. |
|
MN |
Columbia
Wanger Asset Management, LLC |
|
DE |
Emerging
Global Advisors, LLC |
|
DE |
GA
Legacy, LLC |
|
DE |
J.
& W. Seligman & Co. Incorporated |
|
DE |
Columbia
Management Investment Distributors, Inc.2 |
|
DE |
Seligman
Partners, LLC3 |
|
DE |
Lionstone
BBP Limited Partner, LLC |
|
DE |
Houston
BBP, L.P.4 |
|
DE |
Parent
Company/Subsidiary Name |
|
Jurisdiction
|
Lionstone
Partners, LLC |
|
TX |
Cash
Flow Asset Management GP, LLC |
|
TX |
Cash
Flow Asset Management, L.P.5 |
|
TX |
CREAD
Special VAD Limited Partner, LLC |
|
DE |
Lionstone
Advisory Services, LLC |
|
TX |
Lionstone
CFRE II Real Estate Advisory, LLC |
|
DE |
Lionstone
Development Services, LLC |
|
TX |
LPL
1111 Broadway GP, LLC |
|
TX |
LPL
1111 Broadway, L.P.6 |
|
TX |
Lionstone
VA Five, LLC7 |
|
DE |
Lionstone
US Value-Add Five, L.P.8 |
|
DE |
RiverSource
CDO Seed Investments, LLC |
|
MN |
Columbia
Management Investment Services Corp. |
|
MN |
Columbia
Threadneedle Investments UK International Limited |
|
England |
RiverSource
Distributors, Inc.2 |
|
DE |
RiverSource
Life Insurance Company |
|
MN |
Columbia
Cent CLO Advisers, LLC |
|
DE |
RiverSource
Life Insurance Co. of New York |
|
NY |
RiverSource
NY REO, LLC |
|
NY |
RiverSource
REO 1, LLC |
|
MN |
RiverSource
Tax Advantaged Investments, Inc. |
|
DE |
AEXP
Affordable Housing Portfolio, LLC9 |
|
DE |
Ameriprise
Asset Management Holdings Singapore (Pte.) Ltd. |
|
Signapore |
Ameriprise
Asset Management Holdings Hong Kong Limited |
|
Hong
Kong |
Threadneedle
Portfolio Services Hong Kong Limited |
|
Hong
Kong |
Columbia
Threadneedle Investments Japan Co., Ltd. |
|
Japan |
Columbia
Threadneedle Malaysia Sdn Bhd. |
|
Malaysia |
Threadneedle
Investments Singapore (Pte.) Ltd. |
|
Singapore |
TAM
UK International Holdings Limited |
|
England/Wales |
Threadneedle
Asset Management Oversight Limited |
|
England/Wales |
Ameriprise
International Holdings GmbH |
|
Switzerland |
Ameriprise
Asset Management Holdings GmbH |
|
Switzerland |
Threadneedle
EMEA Holdings 1, LLC |
|
Minnesota,
USA |
Threadneedle
Asset Management Holdings Sàrl** |
|
Luxembourg |
CTM
Holdings Limited |
|
Malta |
Columbia
Threadneedle Investments (ME) Limited |
|
Dubai |
Parent
Company/Subsidiary Name |
|
Jurisdiction
|
TAM
Investment Limited |
|
England |
Threadneedle
Holdings Limited |
|
England |
TAM
UK Holdings Limited |
|
England |
Threadneedle
Asset Management Holdings Limited** |
|
England |
Columbia
Threadneedle Foundation |
|
England |
TC
Financing Limited |
|
England |
Threadneedle
Asset Management Limited |
|
England |
Threadneedle
Investment Services Limited |
|
England |
Threadneedle
Asset Management (Nominees) Limited |
|
England |
Convivo
Asset Management Limited |
|
England |
Sackville
TIPP Property (GP) Limited |
|
England |
Threadneedle
Investment Advisors Limited |
|
England |
Threadneedle
Portfolio Managers Limited |
|
England |
Threadneedle
Asset Management Finance Limited |
|
England |
TMS
Investment Limited |
|
Jersey |
Threadneedle
International Fund Management Limited |
|
England |
Threadneedle
International Limited |
|
England |
Threadneedle
Investments (Channel Islands) Limited |
|
Jersey |
Threadneedle
Investments Limited |
|
England |
Threadneedle
Management Services Limited |
|
England |
Threadneedle
Capital Management Limited |
|
England |
Threadneedle
Pension Trustees Limited |
|
England |
Threadneedle
Securities Limited |
|
England |
Threadneedle
Navigator ISA Manager Limited |
|
England |
Threadneedle
Pensions Limited |
|
England |
Threadneedle
Portfolio Services AG |
|
Switzerland |
Threadneedle
Portfolio Services Limited |
|
England |
Threadneedle
Property Investments Limited |
|
England |
Sackville
(CTESIF) GP Sàrl |
|
Luxembourg |
Sackville
LCW (GP) Limited |
|
England |
Sackville
LCW Sub LP 1 (GP) Limited |
|
England |
Sackville
LCW Nominee 1 Limited |
|
England |
Sackville
LCW Nominee 2 Limited |
|
England |
Sackville
LCW Sub LP 2 (GP) Limited |
|
England |
Sackville
LCW Nominee 3 Limited |
|
England |
Sackville
LCW Nominee 4 Limited |
|
England |
Sackville
Property (GP) Limited |
|
England |
Sackville
Property Atlantic (Jersey GP) Limited |
|
Jersey |
Parent
Company/Subsidiary Name |
|
Jurisdiction
|
Sackville
Property Curtis (Jersey GP) Limited |
|
Jersey |
Sackville
Property Hayes (Jersey GP) Limited |
|
Jersey |
Sackville
UKPEC6 Hayes Nominee 1 Limited |
|
Jersey |
Sackville
UKPEC6 Hayes Nominee 2 Limited |
|
Jersey |
Sackville
Property St James (Jersey GP) Limited |
|
Jersey |
Sackville
UKPEC9 St James Nominee 1 Limited |
|
Jersey |
Sackville
UKPEC9 St James Nominee 2 Limited |
|
Jersey |
Sackville
Property Tower (Jersey GP) Limited |
|
Jersey |
Sackville
UKPEC7 Tower Nominee 1 Limited |
|
Jersey |
Sackville
UKPEC7 Tower Nominee 2 Limited |
|
Jersey |
Sackville
Property Victoria (Jersey GP) Limited |
|
Jersey |
Sackville
SPF IV Property (GP) Limited |
|
England |
Sackville
SPF IV (GP) No. 1 Limited |
|
England |
Sackville
SPV IV (GP) No. 2 Limited |
|
England |
Sackville
SPF IV (GP) No. 3 Limited |
|
England |
Sackville
Tandem Property (GP) Limited |
|
England |
Sackville
TPEN Property (GP) Limited |
|
England |
Sackville
TSP Property (GP) Limited |
|
England |
Sackville
UK Property Select II (GP) Limited |
|
England |
Sackville
UK Property Select II (GP) No. 1 Limited |
|
England |
Sackville
UK Property Select II Nominee (1) Limited |
|
England |
Sackville
UK Property Select II (GP) No. 2 Limited |
|
England |
Sackville
UK Property Select II Nominee (2) Limited |
|
England |
Sackville
UK Property Select II (GP) No. 3 Limited |
|
England |
Sackville
UK Property Select II Nominee (3) Limited |
|
England |
Sackville
UK Property Select III (GP) No. 1 Limited |
|
England |
Sackville
UK Property Select III Nominee (1) Limited |
|
England |
Sackville
UK Property Select III Nominee (2) Limited |
|
England |
Sackville
UK Property Select III (GP) No. 2 Limited |
|
England |
Sackville
UK Property Select III Nominee (3) Ltd |
|
England |
Sackville
UK Property Select III Nominee (4) Ltd |
|
England |
Sackville
UK Property Select III (GP) No. 3 Limited |
|
England |
Sackville
UK Property Select III Nominee (5) Ltd |
|
England |
Sackville
UK Property Select III Nominee (6) Ltd |
|
England |
Sackville
UKPEC1 Leeds (GP) Limited |
|
England |
Sackville
UKPEC1 Leeds Nominee 1 Limited |
|
England |
Sackville
UKPEC1 Leeds Nominee 2 Limited |
|
England |
Sackville
UKPEC2 Galahad (GP) Limited |
|
England |
Parent
Company/Subsidiary Name |
|
Jurisdiction
|
Sackville
UKPEC3 Croxley (GP) Limited |
|
England |
Sackville
UKPEC3 Croxley Nominee 1 Limited |
|
England |
Sackville
UKPEC3 Croxley Nominee 2 Limited |
|
England |
Sackville
UKPEC4 Brentford (GP) Limited |
|
England |
Threadneedle
Property Execution 1 Limited |
|
England |
Threadneedle
Property Execution 2 Limited |
|
England |
Threadneedle
Management Luxembourg S.A. |
|
Luxembourg |
Threadneedle
Unit Trust Manager Limited |
|
England |
Unless otherwise indicated all ownership
interests are 100%
*
|
Publicly-traded
company (NYSE: AMP) |
**
|
The company
has non-voting shares held by third parties |
1 |
This entity
has three partners: Ameriprise Financial, Inc. owns 100% profit sharing ratio with capital contribution of 124,078,760 INR (Indian currency=rupees) & 10 INR owned each by Columbia Management Investment Advisers, LLC & Ameriprise India
Partner, LLC |
2 |
Registered
Broker-Dealer |
3 |
This entity
is managed by members of onshore hedge fund feeders |
4 |
This entity
is owned by: Lionstone BBP Limited Partner, LLC (2%) & Teacher Retirement System of Texas (98%) |
5 |
This entity
is owned by: Lionstone Partners, LLC (99%) & Cash Flow Asset Management GP, LLC (1%). |
6 |
This entity
is owned by: Lionstone Partners, LLC (99.9%) & LPL 1111 Broadway GP, LLC (0.1%) |
7 |
This entity
is owned by: Columbia Management Investment Advisers, LLC (83.333%) & Lionstone LVA5 Holdings, LLC (16.667%) |
8 |
This entity
is owned by: Lionstone VA Five, LLC (3%); Teacher Retirement System of Texas (26.2%); California State Teachers’ Retirement System (26.2%); William Marsh Rice University (5.2%); and Lion |
9 |
One-third of
this entity is owned by American Express Travel Related Services. |
Item 33. 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.
Item 34. Principal Underwriters
(a) RiverSource Distributors, Inc. acts as
principal underwriter for:
RiverSource
Variable Annuity Account 1
RiverSource Variable Annuity Account
RiverSource Account F
RiverSource Variable Annuity Fund A
RiverSource Variable Annuity Fund B
RiverSource Variable Account 10
RiverSource Account SBS
RiverSource MVA Account
RiverSource Account MGA
RiverSource Account for Smith Barney
RiverSource Variable Life Separate Account
RiverSource Variable Life Account
RiverSource of New York Variable Annuity Account 1
RiverSource
of New York Variable Annuity Account 2
RiverSource of New York Account 4
RiverSource of New York Account 7
RiverSource of New York Account 8
(b) As to each director, officer or partner of
the principal underwriter:
Name
and Principal Business Address* |
|
Positions
and Offices with Underwriter |
Lynn
Abbott |
|
President
|
Shweta
Jhanji |
|
Senior
Vice President and Treasurer |
Paula
J. Minella |
|
Secretary
|
Michael
J. Mattox |
|
Chief
Financial Officer |
Gumer
C. Alvero |
|
Interim
Chairman of the Board, Chief Executive Officer and Executive Vice President |
*
|
The business
address is 50611 Ameriprise Financial Center, Minneapolis, MN 55474 |
(c) RiverSource Distributors Inc., the
principal underwriter during Registrant’s last fiscal year, was paid the following commissions:
NAME
OF PRINCIPAL UNDERWRITER |
|
NET
UNDERWRITING DISCOUNTS AND COMMISSIONS |
|
COMPENSATION
ON REDEMPTION |
|
BROKERAGE
COMMISSIONS |
|
OTHER
COMPENSATION |
RiverSource
Distributors, Inc. |
|
$24,231,296
|
|
None
|
|
None
|
|
None
|
Item 35. Location
of Accounts and Records
The accounts and
records of the Registrant are located at the offices of the Depositor RiverSource Life Insurance Co. of New York at 20 Madison Avenue Extension, Albany, NY 12203..
Item 36. Management Services
Not Applicable.
Item 37. Fee Representation
The Depositor represents that the fees and
charges deducted under the policy, 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.
SIGNATURES
Pursuant to the requirements of the Securities
Act of 1933 and the Investment Company Act of 1940, RiverSource Life Insurance Co. of New York, on behalf of the Registrant, has duly caused this Registration Statement to be signed on behalf of the Registrant by the undersigned, thereunto duly
authorized, in the City of Minneapolis, and State of Minnesota on the 18th day of October, 2021.
|
RIVERSOURCE
OF NEW YORK ACCOUNT 8 |
|
(Registrant)
|
|
By:
RiverSource Life Insurance Co. of New York |
|
(Depositor)
|
|
By:
|
/s/
Gumer C. Alvero* |
|
|
Gumer
C. Alvero Chairman of the Board, President and Chief Executive Officer |
As required by the Securities Act of 1933,
this Amendment to Registration Statement has been signed by the following persons in the capacities indicated on the 18th day of October, 2021.
Signature
|
Title
|
/s/
Gumer C. Alvero* |
Chairman
of the Board, President and Chief Executive Officer (Chief Executive Officer) |
Gumer
C. Alvero |
/s/
Mark Gorham* |
Director
and Vice President - Insurance Product Development |
Mark
Gorham |
/s/
Jason J. Poor* |
Director
|
Jason
J. Poor |
/s/
Stephen P. Blaske* |
Senior
Vice President and Chief Actuary |
Stephen
P. Blaske |
/s/
Karen M. Bohn* |
Director
|
Karen
M. Bohn |
/s/
Ronald L. Guzior* |
Director
|
Ronald
L. Guzior |
/s/
Shweta Jhanji* |
Senior
Vice President and Treasurer |
Shweta
Jhanji |
/s/
Gregg L. Ewing * |
Vice
President, Chief Financial Officer and Controller (Principal Accounting Officer) (Chief Financial Officer) |
Gregg
L. Ewing |
/s/
Michael J. Pelzel * |
Senior
Vice President – Corporate Tax |
Michael
J. Pelzel |
|
/s/
Brian E. Hartert * |
Director
|
Brian
E. Hartert |
|
/s/
Dixie Carroll |
|
Dixie
Carroll Assistant General Counsel and Assistant Secretary |
|
This Registration Statement is comprised of
the following papers and documents:
The
Cover Page.
PART A.
Prospectus for:
RiverSource(R) Survivorship Variable Universal
Life Insurance
PART B.
The Statement of Additional Information and
Financial Statements relating to RiverSource of New York Account 8.
Part C.
Other Information.
Signatures.
Exhibits.
EXHIBIT INDEX
(d)(1)
|
Copy of
Flexible Premium Survivorship Variable Adjustable Life with Index-Linked Interest Option(s) Life Insurance Policy. |
(d)(6)
|
Copy
of Policy Split Option Rider. |
(d)(7)
|
Copy
of Four-Year Term Insurance Rider. |
(e)(1)
|
Form
of Life and Disability Income Insurance Application |
(k)
|
Consent
and Opinion of Counsel. |
(r)
|
Form
of Initial Summary Prospectus. |